Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS

Third Regular Session

2494

O5DEC 2012
Submitted by the Committee on Public Order and Safety on

Re House BillNo.__—*737

COMMITTEE REPORT NO.

Recommending its approval in substitution of House Bill Nos. 3453 and 3876

Sponsors: Representatives Pablo John F. Garcia and Emmeline Y. Aglipay

Mr. Speaker

The Committee on Public Order and Safety, to which were referred House Bill
No. 3453, introduced by Representative Emmeline Y. Agplipay, entitled

“AN ACT
STRENGTHENING THE PRIVATE SECURITY INDUSTRY, AMENDING FOR THIS.
PURPOSE REPUBLIC ACT NO. 5487, OTHERWISE KNOWN AS THE ‘ACT TO
REGULATE THE ORGANIZATION AND OPERATION OF PRIVATE DETECTIVE,
WATCHMEN OR SECURITY GUARDS AGENCIES”; and

House Bill No. 3876, introduced by Representatives Angelo B. Palmones and
Catalina C. Bagasina, entitled,

“AN ACT
AMENDING REPUBLIC ACT NO. 5487, OTHERWISE KNOWN AS ‘AN ACT TO
REGULATE THE ORGANIZATION AND OPERATION OF PRIVATE DETECTIVE,
WATCHMEN OR SECURITY GUARD AGENCIES’ AND FOR OTHER
PURPOSES’,


has considered the same and recommends that the attached House Bill No.

Gt G732 , entitled:

“AN ACT
STRENGTHENING THE PRIVATE SECURITY INDUSTRY,
REPEALING FOR THIS PURPOSE REPUBLIC ACT NO. 5487, ENTITLED, ‘AN ACT
TO REGULATE THE ORGANIZATION AND OPERATION OF PRIVATE DETECTIVE,
WATCHMEN OR SECURITY GUARD AGENCIES’ AS AMENDED”

be approved in substitution of House Bill Nos. 3453 and 3876 with Representatives
Emmeline Y. Aglipay, Angelo B. Palmones, Catalina C. Bagasina, Pablo John F.
Garcia, Rodolfo W. Antonino, Romeo M. Acop, Juan Miguel “Mikey” Macapagal Arroyo,
Leopoldo N. Bataoil, Roilo Golez, Loreto Leo S. Ocampos, Nasser C. Pangandaman,
Maximo 8. Rodriguez, Jr., Jesus N. Sacdalan, and Susan A. Yap as authors thereof.

lb submitted:

TT

THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES
Quezon City


Republic of the Philippines
YOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
Third Regular Session

‘ 6737

House Bill No.

Introduced by Representatives Emmeline Y. Aglipay, Angelo 5. Palmones,
Catalina C. Bagasina, Pablo John F. Garcia, Rodolfo W. Antonino. Romeo M. Acop,
Juan Miguel “Mikey” Macapagal-Arroyo , Leopoldo N. Bataoil, Rollo Golez
Loreto Leo S. Ocampos, Nasser C. Pangandaman, Maximo B. Rodriguez, Jr
Jesus N. Sacdaian, and Susan A. Yap

ANACT STRENGTHENING THE PRIVATE SECURITY INDUSTRY.
REPEALING FOR THE PURPOSE REPUBLIC ACT NO. 5487 ENTITLED. “AN ACT
TO REGULATE THE ORGANIZATION AND OPERATION OF PRIVATE DETECTIVE,

WATCHMEN OR SECURITY GUARD AGENCIES,” AS AMENDED.

Be it enacted by
Congress assembii

fhe Senate and House of Representatives: 0° the Philippines in

SECTION 1. Short Title of Act - This Act shall be known as “The Security
Industry and the Practice of Security Profession Act.”

i SEC. 2. Scope of this Act. - This Act shall provide for the regulation and
5 supervision of the security industry and the practice of security profession
6

SEC. 3. Definition of Terms. - The following terms are hereby defined as follows:

9 (a) _ Accreditation refers to the formal authorization issued by Supervisory
10 Office for Security and Investigation Agency (SOSIA) to private security
i training institutions, canine training centers, canine service providers,
12 supervisors and training personnel, armored service providers, personal
13 security protection service providers and other specialized security providers

14 in compliance with the standards set at a maximum level.

1S

16 (b) Armored Vehicle refers to a vehicle used in minimum security measures in
17 the continuance of protection of the transportation of cash, funds. checks, any
18 negotiable documents, or any other valuable item transported against crimes
19 and other destructive causes. It is an-extraordinary vehicle made of bullet-
20 resistant materials capable of withstanding the firepower of high-powered

21 firearms such as M16 and M14 rifles. Moreover, armored-vehicles shall be


equipped with a vault or safe or a pariition with a combination lock designed
S to prevent retrievaj of the cargo while in transit

2 (c}__ Company Guard refers to a regular employee of a private company who is
5 employed to render security services within the company premises

7 (6) Duty Detail Order refers to a written order of a private security agency
8 issued by the security manager. operations officer, or the branch manager
9 authorizing the security guards to carry agency-issued firearms while in
f prescribed uniform and in the performance of security services during their
i tour of duty within the property of the person, firm or establishment with whom

S the agency has a contract for security services.

is {e) License to Exercise Security Profession (LESP) refers to a permit issued
5 by the Chief Philippine National Police (PNP). or tne duly authorized
6 representative. recognizing a natural person to be qualified to perform the

duties as security or training personn
19 (License io Operate refers to a permit issued by the Chief, PNP, or the
duly authorized representative, certifying a person to engage in employing
and depioying security guards. canine teams, protection agents private
detectives and other licensed specialized security personnel; or a juridical
person to establish, engage. direct. manage or operate @ private detective
: agency oF private security agency or company guard after payment

SS the prescribed dues or fees and aft quirements as

28 (Q) Pre-Licensing Training Programs refer to licensing pre-requisite. pre-
2 licensing training programs that include all training anc academic programs
30 and courses with the objective to indoctrinate the individual with the basic

skills and educational backgrounds necessary in the effective exercise and
performance of the security and detective profession. These include, but are
hot limited to, the Basic Security Guard Course and the Security Officers
Training Course.

(h) Private Detective refers to any person licensed and qualified to perform
detective work on a compensated basis other than members of the PNP, of
the Armed Forces of the Philippines (AFP), guards of the Bureau of Jail

39 Management and Penology (BUMP), provincial, municipal or city jail guards,
40 and any other member of law enforcement agencies of the government.

4

42 (i) Private Detective Agency refers to any entity that contracts, recruits
3 trains, furnishes or posts private detective and protection agents; or provides
4g detective, investigation and protection services or other detective and
45 protective services as may be set by the PNP in consideration of a fee,

46 reward, commission or compensation.


@) _ Private Security Agency refers to any person, association, partnership
firm, company. or private corporation that: (1) contracts, recruits. trains,

4 furnishes or posts any security guard to perform its functions; (2) offers its
: Services as a consultant on any security-related matter, or trainer and its
6 security guards for hire, commission or compensation through subscription to

individuals, businesses, firms or private, public or government-owned or
Controlled corporations whose business or transactions involve national
Security or interest like the operation or management of domestic ocean
vessels, airplanes, helicopters, seaports, airports helipors, landing strips etc:
or (3) provides specialized security needs that the SOSIA may approve.

(k) _ Private Security Guard refers to any person for hire or compensation, or
as an employee thereof, who offers and renders personal service to: (1)
watch or secure either residences, business establishments, buildings,
compounds, areas, or properties, including but not limited to logging
Concessions and agricultural, mining or pasture lands: or (2} inspect, monitor,
Conduct bodily checks or searches of individuals or baggage or perform other
forms of security inspection. whether physically, manually, electronically or
with the aid of K-9.

() Private Security Industry refers to those engaged in the legitimate
business of providing private security and detective, security training, K9
security and VIP protection services: and those in the management and
administration of company guard forces

(m) Private Security Personnel refers to. natural persons who include private
security guards, private detectives, security consultants, security officers,
protection agents, training officers, training directors, K9 handlers, K9
administrators, K9 evaluators, KS trainers, kennel masters and other certified
or licensed service providers rendering or performing security and detective
services as employed by private security agencies and private firms

(n) Private Security Service refers to the act of providing or rendering services
to guard an establishment, whether public or private, building, compound,
area or property; to conduct access control or denial in any form, whether
physically, manually or scientifically by electronic monitoring systems, for the
Purpose of securing such area or property and at the same time ensuring
Safety and protection of persons within such areas; to maintain peace and
order within such areas; to conduct in-house security training; or to conduct
investigation therein

It shall also include the act of contracting, recruiting, training, furnishing or
posting of any security guard.

(0) Private Security Training refers to training and academic programs and
courses duly approved and prescribed by the PNP and adopted by the

3S


19
20

Ss

eeege

Technical Education and Skills Development Authority (TESDA). For
purposes of securing an LESP, it is essential that a letter of authority to
conduct training must be issued by SOSIA. Such training includes the pre-
licensing requirements of individual security guard and other security
personnel, the periodic and non-periodic in-service skill refreshers for such
security personnel, and other specialized. individual or group, private security
personnel skills development.

(p) Protection Agent refers to any natural person for hire or compensation
who offers his services to protect another natural person against unlawful
activities, harm, danger, or injuries. Said person shall have undergone the
training course for protection agents as mandated, designed and
implemented in accordance with this law.

(q) Security Guard Services refer to private security services provided by
licensed security personnel at a defined area

(r) Security Consultancy Services refer to the services provided by licensed
security personnel such as formulation of a security plan, threat and
vulnerability assessment, site surveying, security auditing, risk management
travel security training, hostage avoidance, evacuation planning and incident
management.

(s) Special Detail Order refers to a written order and schedule of a private
security agency issued by a superior officer, usually the branch manger.
operations officer, or the administrative officer directing the unarmed security
guards to wear a special set of uniform approved by the SOSIA Uniform and
Equipment Board and to perform security services.

SEC. 4. Who May Organize a Private Security Agency. ~ Any Filipino citizen or a
partnership, association or corporation that is one hundred percent (100%) owned and
controlled by Filipino citizens may organize a private security agency. The operator or
licensee of the said agency must be at least twenty-five (25) years old, college
graduate, of good moral character, has no previous record of conviction of any crime or
offense involving moral turpitude, and is not suffering from any of the following
disqualifications:

(a) Has been dishonorably discharged or separated from the AFP, PNP. or
any other government law enforcement agency;

(b) Is mentally incompetent; and

(c) Is addicted to alcohol or the use of narcotic drugs or other controlled
substances.


The minimum capital requirement and minimum bank deposit required of private
security agencies shall be determined by the Chief, PNP in consultation with various
stakeholders and shall be provided for in the implementing rules and regulations of this
Act

For purposes of this Act, elective or appointive government employees who may
be called upon, on account of the functions of their respective offices in the
implementation and enforcement of the provisions of this Act, and any person related to
such government employees by affinity or consanguinity in the third civil degree, shall
not hold any interest, directly or indirectly in any private security agency

SEC. 5. Who May Apply for a License to Exercise Private Security Profession.
Any Filipino citizen may apply for a license to practice the private security profession
and engage in the occupation, calling or employment either as a private security
guard, private security officer, private detective, protection agent or private security
consultant, after complying with academic, scholastic, skills and training requirements
subject to other requirements prescribed herein under:

(a) Basic Requirements of Private Security Personnel —
1) Must be a citizen of the of the Philippines;
2) Must be at least eighteen (18) years old;
3) Must have taken a private security course or seminar and must have
adequate training;
Must be of good moral character and must not have been convicted of any
crime or offense involving moral turpitude;
Must be physically and mentally fit; and
Has passed the neuro-psychiatric test and drug test administered by any
government-accredited neuro-psychiatric testing center.

4

5
6)

(b) Qualifications of a Private Security Guard. - No person shall be licensed as a
security guard for employment in private security agencies and companies
unless that person possesses the following qualifications:

4) Must be a citizen of the Philippines;

2) Must be at least a high schoo! graduate;

3) Must be physically and mentally fit;

4) Must be at least eighteen (18) years old; and not more than fifty (50) years
old for new applicants and security guards in non-supervisory positions;

5) Has passed the neuro-psychiatric test and drug test administered by any
government-accredited neuro-psychiatric testing center; and

6) Has undergone a pre-licensing training course or its equivalent.

No license shall be renewed for security guards who reach the age of sixty (60).

(©) Qualifications of a Security Officer. - No person shall be licensed as a
security officer unless the applicant:


8
9

u

1) Is a citizen of the Philippines.

2) Holds a baccalaureate degree: or one who is without a baccalaureate
degree but has earned and completed at least seventy-two (72) units in
any college or vocational course and has at least five (5) years experience
in any supervisory position;

3) Is physically and mentally fit;

4) Has graduated from a security officer training course or its equivalent; and

5) Has passed the neuro-psychiatric test and drug test administered by any
goveinment-accredited neuro-psychiatric testing center

(d) Qualifications of a Security Consultant. ~ No person shall be licensed as a
security consultant unless the applicant
1) Is physically and mentally fit;
2) Holds a baccalaureate degree:
3) Has at least ten (10) years experience in the operation and management
of a security business: and
4) Has passed the neuro-psychiatric test and drug test administered by any
government accredited neuro-psychiatric testing center.

(@) Qualifications of a Private Detective. - No person shall be licensed as a
private detective unless the applicant
1) ts acitizen of the Philippines;
2) Is physically and mentally fit
3) Holds a baccalaureate degree, preferably bachelor of laws or bachelor
of science in criminology
4) Has graduated from a criminal investigation course offered by the PNP.
the National Bureau of investigation (NBi), or any police training school
or a detective training in any authorized or recognized training center, and
5) Has passed the neuro-psychiatric test and drug test administered by any
government accredited neuro-psychiatric testing center.

() Qualifications of a Protection Agent. - No person shall be licensed as a
protection agent unless the applicant:

1) Isa citizen of the Philippines;

2) Has passed the neuro-psychiatric test and drug test administered by any
government accredited neuro-psychiatric testing center;

3) Holds a baccalaureate degree or one who is without a baccalaureate
degree but has earned and completed at least seventy-two (72) units in
any college or vocational course and has at least five (5) years experience
in any supervisory position;

4) Is at least twenty-five (25) years old but not more than fifty-six (58) years
old.

SEC. 6. Grant of License. (a) A person who shall engage in the business of or
act as a private security agency or engage in private security services shall first


secure the necessary permit from the Chief, PNP. which permit as approved. is @
prerequisite in obtaining a license to operate.

(b} A license is required by any person who shail operate manage or direct a
5 licensed private security, detective. or training agency. Any person. except for thase
6 employed solely for clerical or manual work. participating in the management or
operation thereof, shall likewise secure a license to operate private security services.

8
oe (c) A license te operate private security services shall noi be granted to any
a applicant wno:

1) _ Has a previcus record of conviction of any crime 91 offense involving

= mora! turpitude;
3 2) Has been dishonorably discharged or separated for cause from

i4 employment or servi
15 3) _ is mentally incompetent. as determined by a competent authority
i6 4) Has failed a government-mandated drug test
iF §) _ 1s a habitual drunkard or alcoholic; and
6) _Is proven to be acting as a dummy for a foreign national or company.

(d) A license shall be granted only to a private security agency that has a
s minimum of one hundred (100) licensed private security personne! under its employ.

2 (e) A license to operate shall be granted onl
4 company guard force that has 6 minimum of
personnel under its employ

ctive agency or

private

(f) A license to exercise security profession of duly gualified security guards

s
shall be valid for a period of three (3) years from the date of its issuance.

SEC. 7. Application for License to Operate. - The application for License to
Operate shall be made in writing by the owner for single proprietorships, or the
authorized person duly designated by the partnership or corporation through 2 joint
affidavit or board resolution, respectively. and shail be filed with the Chief, PNP throug!
the PNP SOSIA, Civil Security Group.

Applications made by single proprietorships shall include a copy of the certificate
of registration issued by the Department of Trade and industry. Applications made by
partnerships, associations and corporations shail include a copy of their respective
certificates of registration issued by the Securities and Exchange Commission together
with the company’s by-laws and articles of incorporation.

All applications shall be accompanied by a bond issued by any competent or
feputable surety or fidelity or insurance company duly accredited by the Philippine
insurance Commission, which bond shall answer for any valid and legal claim against
the agency by its clients or employees. The amount of the bord shall be determined by



the CI PNP and stipulated in the implementing rules and reguiations of this Act. The
amount of the bond shall not be unjustified, prohibitive or unreasonable.

SEC. 8. Fees and Bonds to be Paid - When all requisites for the issuance of the
license have been complied with, the Chief, PNP or the duly authorized representative,
shall issue a permit for the issuance of such license and register the same, upon
payment by the applicant of the annual national license fee, and such other fees in
accordance with the schedules of fees to be determined in subsequent issuances or
orders by the PNP. through the SOSIA. The determination of the fees shall be made in
coordination and consultation with various stakeholders.

Any provision of this or other laws to the contrary notwithstanding, the Chief,
PNP may, at any time, suspend or cancel the licenses of private security agencies
found violating any of the provisions of this Act, or the rules and regulations
promulgated by the Chief, PNP pursuant thereto.

SEC 9. Employees Need not be Licensed.- Any person operating. managing or
directing a licensed security agency, as well as any person having any participation in
the management or operation thereof. except those employed solely for clerical or
manual works, shall secure the license prescribed by appropriate Sections of this Act.

SEC. 10. Safeguards Against Private Armies. - The Chief, PNP may cancel
fevoke or suspend the license to operate of any private security agency on any of the
following grounds

(a) Cancellation of a license to operate

1) When a private security agency takes part in an armed conflict either
for private gain or the desire for material compensation or for the
advancement of any ideology and philosophy:

2) When a private security agency uses force or the threat of force to
assert itself or those they represent in a national or iocal electoral contest,

3) When a private security agency uses its authority to engage in human
rights violations as described and protected in the 1987 Constitution of the
Philippines;

4) When a private security agency is used as a privately-owned and
operated para-military organization operating outside of the regulatory
framework established by regulations adopted by the PNP;

5) When a private security agency is deliberately, unilaterally and with the
full knowledge of its management, used for the protection of a syndicated
criminal enterprise: and


6) When the stockhoider. director or senior officer of the private security
agency is convicted of a heinous crime, as defined by law

(b) Suspension of a license to operate’

1) When a stockholder, director or senior officer of the private security
agency is convicted of a crime; and

2) When the private security agency engages in business practices
deemed in violation of Republic Act No. 8799, otherwise known as “The
Securities Regulation Code”

~~SEC. 11. Display of License of Private Security Agency. -The license to operate
shall be displayed at all times in a conspicuous and suitable place in the agency, office,
headquarters and branch offices of the agency. It shall be exhibited at the request of
any person whose jurisdiction is in relation with the business of the agency. the
employees thereof, or of the Chief, PNP or the duly authorized representative

SEC. 12. Supervision by the Phillopine National Police - Upon approval of this
Act, the PNP shall exercise general supervision over the operation of all private security
agencies.

SEC 13. Powers of City or Municipal Mayors in Cases of Emergency. - In case
of emergency or in times of disaster or calamities where the need for the services of
Security agencies may arise, the city or municipal mayor, as director of civil defense
May request the services of the agency nearest the area and its duly licensed personnel
to help maintain peace and order, the prevention or apprehension of law violators. and
in the preservation of life and property without compromising the safety and security of
the area where the private security personnel are assigned. Deputized private
detectives, watchmen or security guards shall take direct orders from the Chief, PNP for
the duration of a fire, inundation, earthquakes, riots or other emergencies.

SEC. 14, Issuance of Firearms. - A private security agency shall be entitled to
possess firearms after having satisfactorily passed the requirements prescribed by the
Chief, PNP, pertinent to the possession of firearms of any caliber not higher than 5.56
caliber in a number not exceeding one firearm for each private security personnel, to
include single-posts, in its employ: Provided, That all the firearms herein referred shall
be carried by the private security personne! only during their tour of duty, in proper
uniform, within the compound of the establishment, except when they escort and secure
persons, big amounts of cash or valuables

SEC. 15. Uniform. - The uniform of private security personnel shalll be different
from the uniform worn and prescribed for members of the AFP, city and municipal police
force. The Chief, PNP, through the duly authorized representative, shall prescribe the
uniform, omaments, equipment and paraphernalia to be worn by the private security
personnel throughout the Philippines.


4

18
19
20

26
28
39

SEC. 16. Compensation and Other Benefits of Private Security Personne! —
Private security personne! shall be paid not less than the minimum wage and other
benefits under the Labor Code of the Philippines, as amended, and other existing laws
and regulations relating to labor standards. In case a private security personnel is paid a
salary lower than the minimum wage prescribed by law, the private security agency and
its client where the underpaid private security personnel is detailed shall be solidarily
liable for such violations.

SEC. 17. Limitations and Prohibitions. - No private security agency shall offer or
Fender services to gambling dens or other illegal enterprises. The extent of the private
security service being provided by any private security agency shall not go beyond the
whole compound or property of the person or establishment requesting the security

+-—-service, except when escorting and securing persons or big amounts of cash

SEC. 18. Rules and Regulations by the Chief, Philigpine National Police. - The
Chief, PNP, in strict and public consultation with the stakeholders and subject to the
Provisions of existing laws, is hereby authorized to issue the rules and regulations
Necessary to carry out the purpose of this Act. Furthermore, the Chief, PNP shall
Consult with various stakeholders prior to the issuance of all regulations and issuances
Telated to and affecting private security agencies and private security personnel. These
implementing rules and regulations shall be reviewed every three (3) years.

SEC. 19. Separability Clause.- |f any part or provision of this Act is declared
Unconstitutional. the remaining parts or provisions not affected shall remain in full force
and effect

SEC. 20. Repealing Clause. ~ Republic Act No. 5487 is hereby repealed. All
laws, rules, resolutions, municipal ordinances, regulations and administrative orders
contrary or inconsistent with the provisions hereof are hereby repealed

SEC. 21. Effectivity- This Act shall take effect fifteen (15) days after its
Publication in at least two (2) newspapers of general circulation

Approved,

10


FACT SHEET

¥ 6737
House Bill No.
(As approved by the Committee)

AN ACT
STRENGTHENING THE PRIVATE SECURITY INDUSTRY,
FOR THIS PURPOSE REPUBLIC ACT NO. 5487 ENTITLED
REPEALING , “AN ACT TO REGULATE THE ORGANIZATION AND
OPERATION OF PRIVATE DETECTIVE, WATCHMEN OR
SECURITY GUARD AGENCIES,” AS AMENDED

Introduced by. REPS. EMMELINE Y. AGLIPAY, ANGELO B. PALMONES,
CATALINA C. BAGASINA, PABLO JOHN F. GARCIA, RODOLFO W. ANTONINO,
ROMEO M. ACOP, JUAN MIGUEL “MIKEY” MACAPAGAL ARROYO ,
LEOPOLDO N. BATAOIL, ROILO GOLEZ, LORETO LEO S. OCAMPOS,
NASSER C. PANGANDAMAN, MAXIMO B. RODRIGUEZ, JR.

JESUS N. SACDALAN, AND SUSAN A. YAP

Committee Referral: COMMITTEE ON PUBLIC ORDER AND SAFETY
Committee Chairperson: REP. PABLO JOHN F. GARCIA

OBJECTIVES

* To professionalize the private security industry by strengthening the
requirements for training and professional certification of security practitioners

© To improve the efficiency of the security industry by making more efficient
bureaucratic processes with respect to licensing, operation and regulation of
private security agencies

* To make the Private Security Agency Act more responsive to the needs of
private security agencies as well as that of the society.

KEY PROVISIONS

+ Designates the Chief of the Philippine National Police (PNP), in consultation
with various stakeholders, to determine the minimum capital requirement
and minimum bank deposit required to operate private security agencies;

+ Requires that a Philippine private security agency shall be one hundred
percent (100%) Filipino-owned: