REPUBLIC OF THE PHILIPPINES fa wr Sep
HOUSE OF REPRESENTATIVES

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Quezon City /$” RECEIVED
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EIGHTEENTH CONGRESS, aw
First Regular Session Etat

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House Bill No, _ 884

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN III

EXPLANATORY NOTE

History has shown that the wealth and destinies of the world’s greatest nations have been
determined and charted by the manner in which they conducted their maritime affairs. Our
country is now at the crossroads of development and our maritime sector can rightfully claim
that it has made a significant contribution towards achieving this feat. The Philippines is,
after all, a maritime country. It is an archipelago of 7, 107 islands with a territorial sea that is
both a sea chest of vast marine wealth and natural highway for the carriage of trade and
commerce.

With the coming into force of the United Nations Convention on the Law of the Sea
(UNCLOS) in November 16, 1994, the Philippines has thereby gained an Exclusive
Economic Zone totaling as much as 652,800 square nautical miles in area, with sovereign
rights over the exploration and exploitation of all living and non-living resources found in the
water column as well as in the seabed. Our fisheries sector employs around one million
Filipinos and contributes much to GNP. Properly explored and exploited, our vast waters and
continental shelf promise to provide even greater opportunities for livelihood for our people.

The Filipino people, scattered around these numerous islands, have since time immemorial
depended on the sea for transportation. Shipping remains the most economical, most
efficient, and most important means of interisland trasnsportation even in this age of great
progress in air and land transportation.

Considering the relevance of a Department of Maritime Affairs to the development of the
national patrimony and to the achievements of the country's long-term goal of self-reliance
and economic self-sufficiency, the sponsor believes that the approval of this bill is of urgent
priority.

MANUI JOCHAN IIE
Representati
Magdalo Para sa Pilipino Party-List


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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No, 884

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN III

AN ACT
CREATING THE DEPARTMENT OF MARITIME AFFAIRS PROVIDING FUNDS
THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

CHAPTER I

SECTION 1. Title. — This Act shall be known as the “Department of Maritime
Affairs Act”

SEC.2. Declaration of Policy. ~ \n keeping with Article XII, paragraph 2 of the
Philippine Constitution which provides that, "the State shall protect the nation's marine
wealth in its archipelagic waters, territorial sea, and exclusive economic zone and reserve its
use and enjoyment exclusively for Filipino citizens,” it is hereby declared to be the policy of
the State to achieve a marine-based economy. It shall further be the policy of the State to
promote, ensure, and coordinate the economic viability, protection, safety, and development
of ports, shipping, shipbuilding, seafaring, and other industries or activities which resolve

around the sea as a medium of transport.
CHAPTER I

SEC.3. Creation of a Department of Maritime Affairs. - Pursuant to the above-
mentioned national policy, there is hereby created a Department of Maritime Affairs,
hereinafter referred to as the Department, which shall, among others, recommend and

implement the Government’s policies, plans, and programs for the promotion of safety and


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“development of ports, shipping, shipbuilding, seafaring, and other activities in the maritime
industry

SEC. 4. Powers and Functions. - The Department shall perform the following
powers and functions:

(a) Encourage, promote, guide, and when necessary, regulate such business
activities relative to the exploration, exploitation, development, management,
trade and utilization of marine resources including marine transportation, port

system and other related activities;

(b) Assess, review and, in coordination with relevant government agencies,
provide direction to research and development programs including
identification of source of marine resources and determination of their

commercial feasibility for development and utilization;

(c) Give full and complete effect to all International Maritime Organization
(IMO) Conventions to which the Republic of the Philippines at present is, or
in the future shall be a Party;

(d) Conduct in-depth studies on all policy areas and options with respect to the
country's implementation of IMO Conventions, the United Nations
Convention on the Law of the Sea, and other pertinent International

conventions and national laws;

(e) Monitor foreign and domestic developments relative to the formulation and
implementation of the country's strategy in implementing the provisions of the
United Nations Convention on the Law of the Sea and other international
conventions including the determination of the maritime area of the country

and to protect the integrity of the said area;

(® Recommend measures to provide assistance to the private sector for the
improvement and upgrading of maritime transportation and infrastructure like
ports, lighthouse; 2, shipyards, fishports, refrigeration facilities, processing

plants and other related facilities;


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(g) Promote, develop and monitor the continuing education, training and
qualification, availability and deployment of seafarers and other maritime
manpower aboard local and foreign vessels consistent with international

standards and conventions; and

(h) Generally exercise all powers and duties necessary to implement the national

policy on maritime affairs pursuant to the objectives of this Act.

SEC. 5. Organization. - The Department shall consist of the following offices and

agencies:

a) Department Proper

b) Maritime Industry Development Authority
c) Philippine Ports Authority

d) National Seafarers Administration

©) Philippine Merchant Marine Academy

f) National Maritime Polytechnic

g) Maritime Research Institute

h) Philippine Coast Guard

SEC. 6. Department Proper. -The Department Proper shall consist of the following

offices:

a) Office of the Secretary. - The Office of the Secretary shall consist of the
Secretary and his immediate staff.

b) Undersecretaries. - The Secretary shall be assisted by three (3)
Undersecretaries, appointed by the President upon the recommendation of the
Secretary, each Undersecretary shall have control and supervision over the

respective offices and services assigned to him by the Secretary.

c) Assistant Secretaries. - The Secretary shall also be assisted by four (4)
Assistant Secretaries, appointed by the President upon the recommendation of
the Secretary. This will be one each for Merchant Marine Administration,
Maritime Industry Development, Ports and Harbors, and the Coast Guard.


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SEC. 7. Head of the Department. - The head of the Department, hereinafter referred
to as the Secretary, shall be appointed by the President subject to confirmation of the
Commission on Appointments.

SEC. 8. General Powers, Terms of Office ad Compensation of the Secretary.- The
authority and responsibility for the exercise of the Department's power and functions shall be
vested in the Secretary, who shall hold office at the pleasure of the President and shall receive
the compensation, allowances, and other emoluments to which heads of departments are
entitled.

SEC. 9. Specific Power and Functions of the Secretary. - The powers and functions
of the Department shall be exercised by and through the Secretary, who shall

a) exercise control and supervision over all offices and bureaus under the
Department;

b) coordinate all policies and programs relating to maritime and marine affairs as
provided in this Act;

©) undertake consultations with other member of the Cabinet and other members of
Government officialdom relating to maritime and marine matters and recommend
policies and programs to the President relative thereto; and

d) advise the President of the activities, programs, plans and all information

necessary or relevant to maritime or marine affairs.

SEC. 10. Offices in the Department. - The Department shall have, under the
supervision and control of the Secretary, an Administrative Service, a Financial and

Management Service, and a Planning Service with the following functions:

a) The Administrative Service shall be responsible for providing the Department
with services relating to personnel, legal assistance, information, records,
supplies, equipment, and custodial work;

b) The Financial and Management Service shall be responsible for providing the
Department with staff advice and assistance on budgetary, financial, and

management improvement matters; and


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c) The Planning Services shall be responsible for providing the Department with
services relating to planning, programming, project development, including
development policies and programs and priorities as may be warranted by

domestic and international development.

SEC. 11. Transfer of Bureaus, Offices and Agencies. - The following bureaus,
offices, and agencies will be transferred from their respective departments (as shown in
parenthesis) to the Department of Maritime Affairs.

a) Maritime Industry Authority (DOTC)

b) Philippine Ports Authority (DOTC)

©) Philippine Merchant Marine Academy (DOTC)

4d) Philippine Coast Guard (DND)

€) Seafarers Section of the Philippine Overseas Employment Administration (DOLE)
f) Seafarers Section of the Overseas Workers Welfare Administration (DOLE)

g) National Maritime Polytechnic (DOLE)

h) Maritime Training Council (DOLE)

CHAPTER III
THE MARITIME INDUSTRY DEVELOPMENT AUTHORITY

SEC. 12. The Maritime Industry Development Authority. - To carry out the policies
and purposes of promoting the growth and developing the economic viability of the maritime
industry, the Maritime Industry Authority together with its capital assets, equipment, and
existing budget is hereby transferred from the Department of Transportation and
Communications to the Department of Maritime Affairs and is hereby renamed the Maritime

Industry Development Authority.

SEC. 13. Composition and Organization. - The Maritime Industry Development
Authority is hereby created initially consisting of the existing officials and employees of the
Maritime Industry Authority, headed by an Administrator.

SEC. 14. Powers and Functions. - The Maritime Industry Development Authority
shall have the following powers and functions:


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a)

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Develop and formulate plans, policies, programs, projects, standards,
specifications and guidelines geared toward the promotion and development of the
commercial and economic viability of the maritime industry, the growth and

effective regulation of shipping enterprises;

Establish, prescribe and regulate routes, zones and/or rates pertinent to the

operation of particular operators of public water services;

Issue Certificate of Public Convenience for the operation of domestic and

overseas water carriers;

Determine fix and/or prescribe changes and/or rates pertinent to the operation of
public water transport utilities, facilities and services except in cases where
charges or rates are established by international bodies or associations of which
the Philippines is a participating member or by bodies or associations recognized
by the Philippine Government as the proper arbiter of such charges or rates;

Accredit maritime enterprises engaged in shipbuilding, ship repair, ship breaking,

domestic and overseas shipping, ship management and agency;

Establish and prescribe rules and regulations, standards and procedures for the
efficient and effective discharge of the above functions, and

Perform such other functions as may now or hereafter be provided by law.

CHAPTER IV
‘THE PHILIPPINE PORTS AUTHORITY

SEC. 15. The Philippine Ports Authority. - To carry out the policies and purposes of

integrating and coordinating port planning, development, control and operations at the
national level, and at the same time promote the growth of regional port bodies responsive to

the needs of their individual localities, the Philippine Ports Authority, including all its capital


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“assets, equipment and existing budget, is hereby transferred from the Department of

Transportation and Communications to the Department of Maritime Affairs.

SEC. 16. Composition and Organization. - The Philippine Ports Authority is hereby

transferred consisting of its existing officials and employees, headed by the General Manager.

CHAPTER V
THE NATIONAL SEAFARERS ADMINISTRATION

SEC. 17. The National Seafarers Administration. - In order to carry out the policies
and purposes of promoting, developing and monitoring the continuing education, training,
welfare and deployment of Filipino seafarers and other maritime workers aboard local as well
as foreign vessels, consistent with international practices, standards and conventions of the
National Seafarers Administration is hereby created. The officials and personnel of the
Philippine Overseas Employment Administration (POEA) involved in the administration of
Filipino seafarers are hereby transferred to the National Seafarers Administration. Likewise,
all equipment, records and the existing budget appertaining to such functions and duties, will
be transferred to the National Seafarers Administration.

SEC. 18. Powers and Functions. - The National Seafarers Administration shal] have
the following powers and functions:

a) Develop and formulate plans, policies, programs and procedures for the

education, training and qualification, welfare, employment and protection of the

b) Maintain and complete registry of Filipino seafarers;

©) Provide free placement services for seafarers;

4d) Secure the best possible terms and conditions of employment for seafarers, and to
ensure compliance thereof,

e) Regulate the activities of manning agents or representatives of ship owner in the
hiring of seafarers for overseas employment;

f) Ensure that the requirements of pertinent international organizations and
maritime conventions on the standards of training and qualifications of Filipino

seafarers are fully complied with;


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) Accredit and certify maritime training centers to ensure proper compliance with

the provisions enumerated in paragraph (f) above;
h

Provide the necessary technical expertise on the supervision of nautical and

maritime engineering schools and colleges;

Have original and exclusive jurisdiction over all matters or cases, including
money claims, involving employer-employee relations arising out of any law or
employment contracts involving Filipino seafarers for overseas employment. In
such cases, the decision of the National Seafarers Administration shall be final

and unappealable;

j) Establish a proper and legal forum for the disciplining of errant seafarers in order
to protect the reputation and excellent image of the good Filipino seaman; and

k) Perform such other functions as may now or hereafter be provided by law.

CHAPTER VI
THE NATIONAL MARITIME POLYTECHNIC

SEC. 21. Tile National Maritime Polytechnic.- To serve as the primary institution for
the upgrading of skill of the merchant marine, the National Maritime Polytechnic (NMP)
including all its capital assets, equipment, and existing budget, is hereby transferred from the
Department of Labor and Employment to the Department of Maritime Affairs.

SEC. 22. Composition and Organization.- The National Maritime Polytechnic is
hereby transferred consisting of its existing officials and employees, headed by the Executive
Director and shall continue to perform all its functions and retain all its powers, rights, and
prerogatives as mandated by its charter. Provided, however, that the chair of the NMP Board
of Trustees shall be transferred from the DOLE Secretary to the DMA Secretary.

CHAPTER VIL
THE MARITIME RESEARCH INSTITUTE

SEC. 23. The Maritime Research Institute. - The Maritime Research Institute is
hereby created as an -attached agency under the Department of Maritime Affairs.


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SEC. 24, Organization.- It shall be composed of:
a) Maritime Research Institute Board of Governors which shall serve as the
governing board; and
b) The "Administration" which, as the executive arm, shall run the Institute's

day-to-day activities and shall be headed by the executive director.

SEC. 23. Functions. - The Maritime Research Institute shall have the following

functions:

a) To spearhead and encourage the development of a maritime research program

to aid the formulation of policies on all aspects of maritime affairs;

b) To harness and propagate the latest development in maritime technology in the
fields of shipbuilding, marine engineering, ship propulsion, cargo handling,
sip management and other such developments and to utilize and adopt the
latest in information technology to serve National Maritime Policy goals;

©) Develop, propagate, and enhance national awareness of maritime issues
through a comprehensive information program;

d) Publish information; books, monographs, and other literature in connection
with the 17 above functions; and

e) Perform such other functions as may now or hereafter be provided by law.

CHAPTER IX
THE PHILIPPINE COAST GUARD

SEC. 24. Establishment and Transfer. - The Philippine Coast Guard, hereinafter
referred to as PCG, is hereby established as a major service separate and distinct from the
Philippine Navy. It shall henceforth be transferred from the Department of National Defense
to the Department of Maritime Affairs as a bureau thereof.

SEC. 25. General Power and Functions of the PCG. - The PCG shall be the agency
primarily responsible for safety of life and property at sea, the protection of the marine
environment and, together with the Philippine Navy, the security of all marine resources
found within the Exclusive Economic Zone and within all other waters and seabed's subject
to the jurisdiction of the Republic of the Philippines. It shall likewise perform such other

functions as it is authorized to perform at the time of the effectivity of this Act.


SEC. 26. Specific Functions. - The Philippine Coast Guard shall perform the

following specific functions:

a) Promulgate and enforce maritime rules and regulations for the promotion of

safety of life and property at sea;

b) Render aid to distressed persons and vessels on the high seas and waters subject
to the jurisdiction of the Philippines, to furnish clothing, food, lodging, medicines
and necessary supplies and services to persons succored; and to take appropriate

actions on remains of those who have perished;

©) Register all Philippine merchant vessels; to issue safety certificates of Philippine
vessel; to approve plans for the construction, repair, or alternation of vessels; to
administer load line requirements for the promotion of the safety of life and
property at sea; conduct annual or periodic surveys and inspection of all
Philippine-registered vessels and issue certificates prescribed in the regulations
consistent with international standards; collect tonnage and other fees directly
related to vessel safety inspection, documentation and compliance with
international standards; to assist in the development of a single Philippine

Classification Society;

d) Formulate, issue, administer, and enforce the Code of Maritime Regulations for
the design, construction, equipment, manning, operation, repair, alteration, and
maintenance of all Philippine-registered vessels and all off-shore facilities
employed in the exploration and exploitation if marine and seabed resources

within the waters subject to Philippine jurisdiction;

€) Conduct inquiries, visits, examination, and inspection on vessels in waters
subject to the jurisdiction of the Philippines for the promotion of safety of life

and property at sea and for the protection of the marine environment;

f) Promulgate and enforce rules and regulations in the construction, outfitting,
manning, documentation and operation of motor boats, fishing vessels, and

pleasure craft not required to be issued a Certificate of Philippine Registry;

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g) Promulgate and enforce rules and regulations on maritime communications to

promote safety of life and property at sea;

h) Regulate salvage operations and destroy or remove hazards to navigation in order

to promote safety of life and property at sea and to preserve the marine
environment;

i) Investigate marine accidents, including all marine protests relative to the
responsibility and liability of ship owner and officers and to impose

administrative sanctions appertaining thereto;

J) Qualify and issue licenses to harbor pilots and bay and river patrons through
proper examinations;

k) Conduct proper examinations and carry out such other tasks of the Board of
Marine Examiners for the issuance and up grading of Merchant Marine officers
licenses;

!) Develop, establish, operate, and maintain aids to navigation facilities and collect

aids 21 to navigation dues for this purpose from users thereof;

m) Develop, establish, operate, and maintain marine environmental protection
facilities;

n) Enforce laws and to promulgate and enforce rules and regulations for the
prevention of marine pollution within the territorial waters and Exclusive
Economic Zone of the Philippines and determine and impose penalties for
violations thereof,

0) Impose administrative penalties of maritime violations and offenses incurred by
vessels within the territorial waters of the Philippines as well as violations by

Philippine-registered vessels in foreign and international waters without

prejudice to the civil liabili of the offender in accordance with existing laws;

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Conduct port State control inspections on foreign-flagged vessels calling at
Philippine ports in accordance with national laws and regional and international
agreements;

Detain ships found to be with deficiencies that may pose a grave threat to the
safety of the passengers and crew and to the vessel and its cargo, or to the marine
environment until such time that the deficiencies are rectified in accordance with

established rules and regulations;

Promulgate, administer, and enforce rules and regulations giving effect to the
provisions of International Treaties, Conventions, Protocols and Municipal Laws
for the safety of life and property at sea;

Represent the Philippine government in international and regional for a
concerning INO and other maritime matters;

Collect international tonnage fees for Philippine-registered vessels in the
international trade to take care of Philippine obligation with the International

Maritime Organization;

Assist other governmental agencies in the performances of thei law enforcement
functions against sea jacking, piracy, illegal entry, illegal fishing, illegal
gathering of corals and other marine products, smuggling and other frauds and
violations that may be committed within the waters of the Philippines. For this
purpose, surveillance boarding and inspections by the Philippine Coast Guard
may be made on vessels entering or leaving Philippine waters. In the
performance of these functions, members of the Philippine Coast Guard shall act

as a law enforcement officers of such agencies;

Organize, train, and supervise the Philippine Coast Guard Auxiliary for the
purpose of assisting in conducting search and rescue, marine environmental
protection, maintaining aids to navigation and such other activities that enhance

civil relations to include civic action, youth development, and related activities;

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w) Maintain and operate all government vessels above 50 gross tons, not otherwise

assigned to the Philippine Navy, except tug boats and dredges used by the

Philippine Ports Authority, in such case, the operations shall solely be for the

mission of the agency concerned except the PCG may utilize the vessels for

search and rescue purposes when not on actual mission; and

x) Perform such other functions as may now hereafter be provided by law.

SEC. 27. National Emergencies. - In time of war or national emergency, the

President may direct the PCG to operate under the Armed Forces of the Philippines. Such

authority shall continue until the President revokes the same.

SEC. 28. Organization. - The PCG shall be headed by a Flag Officer equivalent in
rank to the Flag-Officer-in-Command, Philippine Navy. It shall consist of uniformed and

non- uniformed personnel with defined Coast Guard Table of Organization specialties, ranks

and ratings. It shall also have an independent administrative and logistics system. The

Commandant, Philippine Coast Guard may modify its present organizational structure
effectively and efficiently carry out PCG-defined functions.

SEC. 29. Personnel - PCG personnel shall be governed by the following rules:

a)

b)

All personnel assigned to the Philippine Coast Guard shall be
transferred out of the Philippine Navy (PN) upon effectivity of this Act
provided that the transfer may be allowed in and out of the Navy and
the AFP within the transition period provided herein; and

The PCG shall continue to source its commissioned officers form the
same fields as that of the PN; it also shall, until such time that a
Philippine Coast Guard Academy shall have been organized, be
authorized to recruit graduates from the Philippine Merchant Marine
‘Academy under terms and conditions to be determined by the
Secretary of Maritime Affairs; Provided that the PCG may accept
graduates with baccalaureate degrees to be commissioned in the PCG

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service from other merchant marine institutions and other schools

recognized by the Government.

SEC. 30. Relations with Other Agencies.-

a) The Philippine National Police shall primarily perfurm law enfurcement
activities in 13 the maritime environment in pursuance of the provisions
ofthe Revised Penal Code, 14 provided, that nothing in this Act shall
prevent the appropriate PNP unit from being 15 deputized by the

appropriate agency to perform the respective maritime law 16 enforcement
function in coastal areas; and

b)

Consistent with the objectives of the National Defense Act, in the pursuit
of reserve training, and in the interest of keeping abreast of current
developments in maritime transportation, the Commandant, Philippine
Coast Guard may allow the periodic service of duty qualified and licensed
Philippine Coast Guard personnel on board Philippine-registered merchant

vessels under such rules and regulations as the Commandant may
prescribe.

SEC. 31. Transitory Provisions. - The PCG shall be governed by the following

provisions:

a)

Officers in the grade of PN Flag and Captain who have had considerable
tours of duty with PCG may opt to join the PCG and likewise those
already with the PCG may opt to leave within the initial year upon the
effectivity of this Act after which they shall no longer be allowed to
transfer; and

b)

Other Philippine navy and AFP personnel below the grade of Captain PN
or equivalent who have qualified 'for Coast Guard eligibility may also join
the PCG subject to the vacancies of the prescribed organizational rank

structure within the transition period of one (1) year.

SEC. 32. PCG Funds and Expenditures. - The accrued income of the PCG from its

operation and exercise of various regulatory functions shall be declared as PCG Trust

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* Receipts and shall be made available to the PCG for the improvement and maintenance of
basic services in the same manner prescribed in Executive Order No. 1002. These funds shall
be utilized only for the following expenditures in an appropriate budget as prescribed in
Executive Order No. 1002, subject to approval of the Secretary of Maritime Affairs:

a) Printing of forms and certificates directly related to the services for which they
were collected;

b) Provision for other supplies and services for which the fees were collected;

©) Participation in international organizations and commitments to included payment
‘of annual assessment and dues to the International Maritime Organization (IMO)
and International Association of Lighthouse Authorities (IALA) and for other
international agreements when the fees for the same cannot be fully covered in the
annual appropriations; and

4) Maintenance of the Intemational Maritime Organization (IMO) attache post as
prescribed under Executive order No. 162, when funds for the same cannot be
fully covered in the annual appropriations.

SEC. 33. Assets. All assets of the PG including all its vessels, armaments, vehicle
and their accessories, building, real estates, lighthouses and other properties and records are
hereby vested in the newly established PCG: Provided that a Transfer and Liquidation of
committee shall be created to undertake the disposition and appropriate inventory of all these
properties.

CHAPTER XI
FINAL PROVISIONS

SEC. 34. Appropriation. - To carry out the purposes of this Act, there is hereby
appropriated out of any funds of the National Treasury not otherwise appropriated, the sum of
Fifty million pesos (P50,000,000.00) for the operation and maintenance of the Department;
Thereafter, the appropriation for the Department, its bureaus, offices and agencies shall be
included in the annual General Appropriations Act.

SEC. 35. Appropriations of Offices and Agencies to be transferred. - A\\ offices,
bureaus, and agencies being transferred to the Department of Maritime Affairs shall continue

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to operate using all funds already appropriated to them for the rest of the fiscal year in which

this Act was approved.

SEC. 36. Repealing and Modifying Clause.- PD 857, RA 3680, RA 5173, PD 601,
LOI 20 1404, EO 493, PD 474, BO 125, EO 125-A, and all other laws, executive orders, rules

and regulations inconsistent herewith are hereby repealed, amended, or modified accordingly

SEC. 37. Effectivity. - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,

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