Republic of the Philippines
House of Representatives
Quezon City

Fifteenth Congress
First Regular Session

232
HOUSE BILL NO. _ 1232

Introduced by Winston Castelo

EXPLANATORY NOTE,

The Philippines and the community of nations are legitimately distressed by
wanton terrorist attacks upon transportation systems and facilities in the light of the
September 11, 2001 U.S.A. attacks (9/11); the Madrid (Spain) brutal Train bombing;
the Bali & Djakarta Indonesia murderous bombing streaks and numerous others in
the intemational stage coupled in the domestic theatre by the Super Ferry Sinking;
the LRT Rizal day bombings that has links to intemational terrorists ring; the Davao
Intemational Airport Bombing and others, resulting to tragic loss of irreplaceable lives
and awesome damage to property and commerce. These national and international
security incidents urges the state to formulate and eamestly implement a
comprehensive air (civil aviation), water (maritime) and land (rail/overland) transport
security programs under a singular administrative authority with law enforcement
power to prevent if not eradicate security threats/incidents to precious human lives
and critical transport facilities/infrastructures while in full compliance with the
mandates of intemational agreements and conventions to halt the menacing
transport terrorism.

Our country needs cogent measures to warrant an efficient and internationally
compliant transport security systems with an effective law enforcement group in all
ports, harbors, terminals, infrastructures and facilities in air, land and water
nationwide, There is an urgent need to install and implement a comprehensive CIVIL
AVIATION, MARITIME, LAND & RAIL NATIONAL SECURITY PROGRAMS
throughout the country to contain and prevent, if not eradicate, incidents detrimental
to human lives and properties. It is of highest national honor and prestige that the
Philippines is fully compliant with the minimum intemational standards in all modes
of transport security by being acquiescent with post 9/11 standards and practices
prescribed for transportation security.


The State must enact a singular administrative agency in the transportation
sector, the law enforcement agencies and such other allied agencies. Such
legislation should likewise mandate the establishment of measures to prevent
weapons, explosives or other dangerous materials, persons, elements, devices and
cargoes which may be used to commit an act of unlawful interference, the carriage
or bearing of which is not authorized, from being introduced, by any means
whatsoever, on board a transportation system. This legislation is in the interest of
national honor and prestige that the State be in protocol footing with the minimum
security requirements in inter-modal transportation sy; being fully compliant
with the post 9/11 internationally accepted standgrfs and practices prescribed for
transportation security.

Therefore, immediate passage of this bif to strengthen and ehforce the laws
‘on security in all the transportation systems is


Republic of the Philippines
House of Representatives
Quezon City

Fifteenth Congress
First Regular Session
1232

HOUSE BILL NO.

Introduced by Winston T. Castelo

AN ACT TO BE KNOWN AS THE "TRANSPORTATION SECURITY ACT OF
2010", CREATING THE PHILIPPINE TRANSPORTATION SECURITY
AUTHORITY (PTSA) AND AUTHORIZING THE APPROPRIATIONS OF FUNDS
THEREFORE AND FOR OTHER PURPOSES

TITLE | - GENERAL PROVISIONS

Section 1. Title. - This Act shall be known as the “Transportation Security
Act of 2010"

Section 2. Declaration of Policy. - The State recognizes the vital role of
public transportation and commerce in nation building and in the promotion of
international and domestic trade relations for economic growth and comity among
nations,

The State in preserving and protecting the rights of its people to a secured
public transport system, hereby supports and promotes the installation and
implementation of a consolidated transportation security management to improve
and maintain an effective inter-modal (air, land & water) transportation systems in full
compliance with the intemational standards/practices and fostering state of the art
security measures in the country’s transportation systems.

The State further declares all out support in the implementation and
enforcement of the strictest possible standards to stamp out terrorism, economic
sabotage and all forms of unlawful interference that breach the integrity and security
of international and domestic transportation systems.

The State finally adopts the generally accepted principles of international law
and universal recommendations on standards and practices in transportation
security measures as part of the laws of the land and adheres to the policy of comity
and cooperation


Section 3. Unlawful interference to Transportation System, How
committed. - Acts of unlawful interference to transportation systems are any
intentional or unintentional felonious act or acts directed upon any transportation
system (land, water & air), ports, harbors, infrastructure, hangars, terminals, service
or facility, which breach the security or interferes with the secured, efficient, smooth
and regular operations of a transportation system, ports, infrastructure, terminals,
service or facility, thereby causing death, physical injuries, danger and property
damagelloss in great waste or ruin

Section 4. Other acts of unlawful interference. - Other acts of unlawful
interference maybe committed;

a) By any person or group of persons threatening to cause serious unlawful
interference with, or actually causing unlawful interference/disruption of a public
transport service, facility or system, whether public or private by providing material,
financial or moral comfort except in the furtherance of legitimate protest, grievance or
advocacy;

b) By maliciously reporting any felonious acts, whether isolated or habitual,
independent or in conspiracy or concert acts, in whatever criminal stage of
execution, which tend to jeopardize or threaten or have jeopardized or threatened
the security of public transportation in the Philippines;

¢) By unauthorized release of any classified Transport Security Information;

d) By failing to sanitize or implement security measures in a transport system;

e) By abusing transport franchise, permit and other certificates of public
convenience;

f) By not disclosing or reporting information conceming breach in transport
‘security;

9) By unlawful use of vehicles, vessels, sea crafts and aircrafts in the
transportation business for the purpose of committing unlawful interference;

h) By any other act of commission or omission which tend to endanger public
Security and Convenience or breach the integrity and security of a transportation
system;

Section 5. Conspiracy or proposal to commit Unlawful Interference. -
There is a conspiracy to commit unlawful interference when two or more person
comes to an agreement to commit any act of unlawful interference defined herein
and decide to commit it.

There is proposal to commit unlawful interference when a person, who has
decided to commit any act of unlawful interference as defined herein, proposes its
execution to some other persons or persons.

Section 6. Jurisdiction over cases involving unlawful interference. - The
Regional Trial Court or the Sandiganbayan, as the case maybe, shall have


jurisdiction to try all cases involving unlawful interference to the transportation
system.

Those charged with or convicted of acts of unlawful interference are without
prejudice to the prosecution for any other act or acts penalized under the Revised
Penal Code or other existing laws.

Section 7. Bail. - For offenses covered by this act, all applications for bail
shall be subject to the Revised Rules of Court (RRC).

Section 8. Provisional Remedies. - After filing the crime of unlawful
interference and upon a verified motion by the prosecution, the Court shall cause the
issuance of a temporary restraining order (TRO); a writ of injunction; a writ of
attachment; garnishment or such other equitable relief or issue appropriate order for
the tracking, seizure, disabling, disposal, preservation, disarmament or destruction of
the things used in the unlawful interference to prevent the same from being removed,
concealed, dissipated, destroyed, activated, transferred, assigned or otherwise
disposed of during the pendency of the criminal proceedings.

No temporary restraining order (TRO) or writ of injunction against any order,
regulation, circular or memorandum or other issuances issued by this appropriate
agency (TSA) and pursuant to this act can be issued but by the Court of Appeals or
the Supreme Court,

Section 9. Mandates for compliance with International Conventions. - As
member of the community of nations and as signatory state to international
conventions, it is hereby stated that a singular Transport Security Authority is
mandated to comply with the provisions of transportation security administration
under International Maritime Organization as stated in the Intemational Ship & port
Security Code (ISPS CODE) and Annex 17 (for security) of the International Civil
Aviation Organization (ICAO).

Section 10. Penal Provisions. - a) Penalty for acts of unlawful
Interference - The penalty of not less than six (6) months to life imprisonment and a
fine of not less than Php20,000.00 and not more than Ten Million Pesos
(PHP10.000.000.00) shall be imposed upon any person or group of persons
convicted under section three (3) of this act; b) Penalty for Conspiracy or proposal
to commit unlawful interference - The penalty of imprisonment of not less than six
(6) years but not more than twelve (12) years shall be imposed upon any person or
persons convicted under section four (4) of this act; c) Penalty for materially
supporting or financing acts of unlawful interference - Penalty of not less than
six (8) years but not more than twelve (12) years shall be imposed upon any person
oF group of persons convicted under section four (4) paragraph A of this act; d)
Penalties for malicious reporting - The penalty of two (2) years imprisonment and
a fine of not less than Two hundred Thousand Pesos (Php200.000.00) Phil Currency
but not more than Five hundred Thousand Pesos (Php500.000.00) Phil Currency
shall be imposed upon any person convicted under section four (4) paragraph B of
this Act; e) Penalties for violations of other provisions of this Act. - The penalty
of not less than six (6) months but not more than one (1) year and a fine of not less


than twenty (20) thousand pesos but not more than fifty (50) thousand shall be
imposed upon any person convicted of the offense involving violation of any other
provision of this act.

TITLE Il - CREATION OF THE “PHILIPPINE TRANSPORTATION SECURITY
AUTHORITY"

Section 1. Creation and Mandate of the Philippine Transportation
Security Authority (PTSA). - There is hereby created a single administrative
agency to address the transportation system security of the country to be known as
the ‘Philippine Transportation Security Authority’ herein referred to as the
“Authority”. It shall be an attached agency under the administration of the Secretary
of the Department of Transportation and Communications (DOTC).

The Authority in compliance with the mandates of international conventions is
hereby designated as the single administrative authority for the security of all modes
(air, water & land) of transportation in the country. It shall be organized, trained and
equipped to perform law enforcement functions in the transportation security sector.

The Authority shall render, for law enforcement purposes, reciprocal support,
assistance and coordination with the Civil Aeronautics Board (CAB), the Air
Transportation Office (ATO), Philippine Ports Authority (PPA), MARINA, SBMA,
CPA, BCDA, PHIVIDEC, LTO, LTFRB, PNP, AFP, TMG, ASG, PCG, AIRPORT
POLICE, CUSTOMS POLICE, and such other agencies related to transportation
security,

The Authority is mandated to promote, formulate, implement and ensure the
installation of security standards, measures and appropriate fees, protocol,
procedure, practices and policies that are universally acceptable for the prevention of
transportation security incidentdisaster; the protection and security of passengers,
crews, cargoes, baggage's, personnel, facilities & infrastructure, properties and the
general public.

Section 2. Powers & Functions. - The Authority shall have the following
powers and functions:

a) Exercises effective control and assumes supervision over all police and
security agencies performing or rendering services in the transport security sector;

b) Responsible for the security of all modes and means of transportation
systems in the Philippines that are exercised by the different government agencies
including but not limited to screening of passengers, baggage or cargoes; hiring and
retention of security screening personnel; training and testing of security screening,
inspection, verification & audit personnel;

©) Advise the President directly or through the Secretary of Transportation and
Communications (SOTC) and or the National Security Council (NSC) on all matters
involving transport security. In cases of urgency, the Authority by the Administrator


may report directly to the President on urgent national and international transport
security concern;

d) Formulate, promulgate and develop in coordination with appropriate
agencies, comprehensive transportation security plans, policies, regulations,
measures, fees and programs to decisively deal with any threat to the security of the
transport systems, and continually review, assess and upgrade such plans,
regulations, policies, measures, fees, strategies and programs to improve and
enhance transportation security and ensure the adequacy of these security
measures, fees and programs to improve national transportation security upon
‘contemporary concepts and principles;

) Examine, verify and audit the transport security performance, activities and
facilities of ail modes of transportation system, and establish inter-modal transport
security standards on a continuing review. ‘

9g) Prepare a comprehensive and separate National Transport Security
Program , prescribing rules and regulations for the efficient operation of Land, Air
and Water/Maritime transportation security, including procedures and screening for
the issuance of security access pass and the determination of levels of security
clearance on transportation facilities and infrastructures;

h) Prescribe transport security standards in all modes of transportation
systems in the Philippines in accordance with existing laws, rules, regulations and
international conventions;

i) Exercise law enforcement power over all matters involving transport
security, isolated or syndicated disruption or unlawful interference, upon all modes of
transportation system. The Authority may, however, request assistance from other
law enforcement agencies and may appoint or deputize other law enforcement
personnel and or agencies to carry out its mandate;

j) Actively pursue motu propio the investigation and prosecution of any felony,
illegal act or unlawful interference committed at or directed against transportation
‘system, facilities and infrastructure; Effect the arrest of offenders in accordance with
law; And file appropriate charges related thereto through the appropriate government
agencies;

k) Acquire, purchase, own, administer, lease, mortgage, sell or otherwise
dispose of or encumber any real or personal property, equipment, assets and rights
in furtherance of its mandate. The Authority shall be exempt from payment of any or
all direct and indirect taxes, imports fees and charges, capital gains taxes, local and
national taxes, interests, import duties, fees, taxes and charges of any kind or nature
Cn all of its real and personal properties, assets, income and revenues, importations,
transactions, loans and obligations (principal or interests) as acquired and incurred in
the exercise of its mandate under the provisions of this Act;

|) Sue and be sued with its consent;

m) Procure, own and carry firearms; and have the authority to issue mission
orders thereon, subject to existing laws, rules and regulations;


n) Perform such other functions necessary to effectively carry out the
provisions of this Act and as the President of the Philippines or the Secretary of
Transportation and Communications may direct.

Section 3. Organizational Structure - Administrator and Deputy
Administrator: Qualifications, appointments and terms of office. - The head of
the Authority shall be designated as the Administrator with the rank of an
Undersecretary, and is responsible for the general administration and management
of the agency. He must be a natural born citizen of the Philippines; at least forty five
(45) years of age; Have experience in a field directly related to transportation or
security; At least five (5) years experience in the management of a field directly
related to security or allied services.

The Administrator shall be appointed by the President of the Philippines upon
recommendation of the Secretary of Transportation and Communications (SOTC).
The Administrator shall serve a fixed term of seven (7) years counted from the time
he takes his oath to assume office. The Administrator is assisted by a Deputy
Administrator with the rank of Assistant Secretary and shall have the same
qualifications and term of office as the Administrator.

For purposes of law enforcement in the exercise of police functions, the
Administrator and the Deputy Administrator are deemed persons in authority. All
subordinate officials and personnel are deemed agents of persons in authority.

Section 4. Major Services. - For purposes of carrying out its duties and
powers as provided for in the succeeding sections, the TSA shall have the following
major services; CIVIL AVIATION SECURITY SERVICES; MARITIME SECURITY
SERVICES; LAND & RAIL SECURITY SERVICES; INTELLIGENCE &
COMMUNICATIONS SECURITY SERVICES; FINANCE & ADMINISTRATION
SERVICES; and LEGAL, POLICY RESEARCH & ADJUDICATION SERVICES. The
major services are to be headed by DIRECTORS.

a) Civil Aviation Security Services (CASS) - Which shall conduct continuous
inspection, monitoring, audit of facilities and operations at all levels of air
transportation system and shall monitor the implementation of the Authority's
projects, programs and regulations relative to security of air transportation; to
conduct investigation on ali matters involving illegal acts or unlawful interference
committed upon or directed to air transportation facility and submit recommendation
relative thereto;

b) Maritime Security Services (MARSS) - This shall conduct continuous
inspection, monitoring, audit of facilities and operations at all levels of maritime
transportation system; and shall monitor the rules regulations relative to security of
maritime transportation; to conduct investigation on all matters involving illegal acts
or unlawful interference committed upon or directed to maritime transportation facility
and submit recommendation relative thereto;

c) Land & Rail Security Services (LARSS) - Which shall conduct continuous
inspection, monitoring and audit of facilities and operations at all levels of land and
rail transportation system and shall monitor the implementation of the Authority's


projects, programs and regulations relative to security of land and rail transport
facility against illegal acts or unlawful interference committed upon or directed to land
and rail transport facility and submit recommendation relative thereto;

d) Administrative & Finance Services (AFS) - Which shall provide necessary
services relating to finance & administrative matters; Keeps records,
correspondence, supplies, property, equipment & general services; and the
maintenance and utilization of facilities; and provide services relating to manpower,
career planning and development, personnel placements and employees welfare;

e) Legal, Policy Research & Adjudication Services (LPRAS) -
Which shall provide the Authority with efficient and effective service as legal counsel
‘of the Authority; Draft or study contracts affecting the Authority; Review reports
relative to investigation conducted by the Authority and submit recommendations
pertaining thereto; Render legal opinions arising from the administration and
operation of the Authority and Adjudicate matters affecting the regulatory powers of
the authority; Be responsible for information and data gathering of regulatory
issuances relative to matters of national policy on civil aviation; maritime and land &
rail transportation security;

f) Intelligence & Communications Security Services (ICSS) - Which shall
conduct continuous intelligence gathering and evaluation to direct and substantiate
policy directions of the agency on . It shall likewise promulgate programs to
strengthen the intelligence capability of the Authority in securing the different modes
of transportation including transportation communication systems, facilities, services
and infrastructure in the country.

Incidental matters that may be uncovered and which may pertain to another
office, agency, bureau or division, holding or operating within the transportation
facilities and complexes must be reported to the appropriate enforcement agencies
and the same may be subjected to direct control and police action by the operatives
and elements of the Authority.

The Authority may from time to time change its organizational structure and
thus, may create, merge, consolidate or abolish such other functional offices or
divisions, as it may deem proper and appropriate to achieve in maximum its
mandates.

The Authority shall establish and maintain regional offices in the different
regions of the country which shall be responsible for the implementation of this Act
and the policies, programs and projects of the Authority in their respective regions.

Section 5. Removal; Filling of Vacancy. - The Administrator may be
removed from office by the President only for cause in accordance with the Civil
Service laws, rules and regulations and due process.

In case of vacancy in the Authority due to death, resignation, removal or
permanent disability of the incumbent Administrator, the Deputy Administrator shall
serve as acting Administrator in a concurrent capacity until a new Administrator is
appointed, has qualified and assumed office for the full term.


Section 6. Prohibition. - The Administrator, Deputy Administrator, Directors
and alll other officials, officers, entire staff and personnel of the authority shall not
‘own stock in or bonds of a transportation or security enterprise or in an enterprise
that manufactures equipment that could be used for transport security purposes.

Any violation of this prohibition shall be dealt with in accordance with the
existing concept of conflict of interest as defines in the rules and regulations
concerning accountability of public officers.

Section 7. Membership in the National Security Council. - The
Administrator or his duly qualified representative/designate possessing the same
high security clearance is hereby designated as member of the National Security
Council and reports directly to the President of the Philippines regarding sensitive
transportation security information.

Section 8. Functions, Powers and Duties of the Administrator. - The
Administrator shall have the following functions, powers and duties:

1) The sole exclusive power to interpret the provisions of this Act subject to
review on certiorari by the Court of Appeals on ground of grave abuse of discretion
amounting to excess or utter lack of jurisdiction;

2) The power to promulgate rules, regulations and thereto charge fees to
effectively implement the provisions of this Act;

3) The sole and unilateral responsibility to determine sensitive security
information (SSI). The Administrator prohibits the disclosure of information, files or
frecords or date of any sort, if in his opinion, the disclosure of such information is; a)
detrimental to the security of persons and things in transportation; b) will reveal trade
secrets or privileged or confidential information obtained from any person, natural or
juridical; c) will constitute unwarranted invasion of privacy of persons, including but
not limited to information contained in any personnel, medical or similar file; d) will
undermine public trusts and confidence in duly constituted authorities in the exercise
of judgment calls and discretions in any or all risk managements and preventive/pre-
emptive actions undertaken. In view hereof, the Authority and all of its officers, staff
and personnel shall not be compelled to bear witness, report, information or
testimony in any inquiry or forum of whatever nature called for the purpose unless
authorized in writing and within the scope of authorized inquiry by the President of
the Republic of the Philippines.

4) To administer and implement, subject to existing laws, rules and
regulations, the mandate, powers and functions of the Authority. Provided that, the
Administrator may designate an officer and/or employee of the Authority to serve as.
a law enforcement officer;

5) To direct and supervise the management, operation, and administration of
the Authority in complying with international standards of transportation security
Measures and to ensure transportation security in accordance with the approved
Programs plans, policies, procedures and guidelines;

6) To administer, implement and enforce decisions, orders, fees and
transportation Security rules & regulations prescribed by law and/or issued by the
Authority;


7) To exercise visitorial and inspection powers over all transportation facilities,
Complexes, buildings, offices, seaports and airports, tarmacs, wharfs, terminals,
infrastructures and the likes; and issue travel and mission orders for the foregoing
Purpose; and coordinate with corresponding transport entities for the Implementation
of the same. All transportation operators or entities shall be obliged to accommodate
on non-revenue basis the enforcement and regulatory teams duly designated by the
Authority for the purpose. All transportation systems must provide within its premises
adequate operational office space and quarters for the localized security functions of
the Authority;

8) To undertake researches, studies, investigations and other activities related
to Contemporary transportation system security and future innovative requirements
thereof, on his own initiative or upon instruction of higher authorities, and to submit
comprehensive reports and appropriate recommendations to the Secretary of the
Department of Transportation & Communications (SOTC) for his information and
action;

9) To formulate, implement, revise and update inter-modal (Air, Land & Water)
National Transport Security Programs and Operational Plans;

10) To prescribe collection procedures and schedules of security fees, rates
and Charges consistent with prevailing international standards for the use of airports,
seaports, terminals and other transportation facilities/infrastructure. The revenues
collected thereon shall be reported to the Philippine Treasury and shall thereafter be
disbursed by the Authority for the continuing support and upgrading the
administration, operation and services of the Authority, and for effectively carrying
‘out the mandates of this Act, subject to existing auditing and accounting laws, rules,
regulations and procedures;

11) To appoint, transfer, suspend, remove or otherwise discipline any
subordinate Officer or employee of the Authority, subject to Civil Service laws, rules
and regulations;

12) To provide for employees benefit program and policies on promotions and
‘salary Standardizations at par with the international security service but subject to
approval by the civil service commission;

13) To organize or reorganize the structure of the Authority to meet the
changing Conditions, subject to existing laws & rules on the matter;

14) To assess threats to transport security and to receive, assess and
distribute on a Timely basis, all intelligence information related to transport security;

15) To develop policies, strategies, and plans for dealing with prevention and
Management of crises and threats to transportation security; and ensure the
installation and enforcement of the national security plan in all transportation
systems in the Philippines;

16) To perform such other functions necessary to carry out the provisions of
this Act And as the President of the Philippines or the Secretary of Transportation
and Communication may direct.

Section 9, Police Control, Supervision and Delegation of Powers. - The
Authority shall have priority jurisdiction and precedence in the control over the
movement of persons, cargoes, or both within the operational area of any mode of


transportation system and shall therefore, possess authority to prescribe and issue
security access passes within any transport operational area.

The designated law enforcement officer and personnel of the Authority or
those that maybe deputized to carry law enforcement power, shall have the power to
effect arrest or take police action on any criminal act committed within its
jurisdictional area or in their presence and may endorse the records of arrest and
apprehension to the local police officer of jurisdiction where the transport system
security incident happened.

The Authority exercises primary jurisdiction over acts of unlawful interference,
felony or acts of terrorism committed against any transport system but may delegate
or endorse same to any government agency for effective enforcement, who is
likewise obliged to accept the same and see its prompt conclusion. The Authority
reserves its right to supervise, monitor and coordinate the stages of such
investigation

Section 10. Integration of Personnel Complement. - For purposes of
implementing the provisions of this Act, the Philippine Coast Guard (PCG), Philippine
Ports Authority Police (PPAP), Airport Police, Customs Police, PNP Maritime, Airport
Security Group, Traffic Management Group (TMG), Aviation Security Group (ASG)
and all other government agencies having the primary duty and function of providing
transportation security shall be operationally and if necessitated by the exigency of
the service, administratively integrated into and under the sole control and
supervision of the Authority.

Provided, that subject to the limitations in this Act; Executive Order No. 277; &
Executed Order No. 311, the Office for Transportation Security under the
Department of Transportation and Communications (OTS-DOTC) is hereby
abolished and the present Officers and staff of the said office (OTS-DOTC) are
hereby absorbed and shall serve as the initial personnel complement of the
Authority.

Section 11. Entry Level Into the Authority. - The entry eligibility of the
absorbed (OTS-DOTC) personnel and the integrated personnel (Sec. 10, this act) for
the Authority, including the Administrator, the Deputy Administrator and the Service
Directors, shall be waived by the Civil Service Commission, provided that the
absorbed and integrated personnel possesses equivalent qualifications in terms of
training in basic security of not less than one hundred (100) hours and extensive
experience for at least two (2) years in actual investigation, intelligence and security
functions or assignments in a non-revenue generating office or agency.

Section 12. The Promotions and Selection Board. - There shall be a
promotion Board within the Authority which shall screen and evaluate organic
personnel for promotion. Appointment and promotion process shall follow the
procedures prescribed in this Act.

All positions in the Authority hereinafter created shall be filled up in
accordance with the Authority's organizationa/administrative and operational
structure/manual, which shall thereto define the qualification standards consistent
with the minimum requirements of the Civil Service Commission.


The Service Directors shall be regularly appointed by the President of the
Philippines upon the recommendation of the Secretary of the Department of
Transportation and Communications (SOTC). However, the Secretary of the
Department of Transportation & Communications may in the interim and in the
exigency of the service, appoint the initial batch of service directors upon the
recommendations of the Administrator. These appointed Directors shall be the
members of the AD-Hoc Committee for the preparation and development of the
Implementing Rules and Regulations (IRR) of the Authority covering all aspects of
the administration, management, operations, logistics/finance, legal service & policy
research, law enforcements, standard measures and practices of ‘transportation
security and all other matters affecting or related to the full operation of the Authority,
consistent and updated with prevailing technological breakthrough.

There shall be a Selection and Qualification Committee, which shall
recommend to the Administrator, the appointment of all other personnel not herein
provided.

Section 13. Transfer of Existing Facilities. - All existing facilities, equipment
and all other assets and properties, rights, interests and privileges belonging to the
absorbed & integrated agencies are hereby transferred to the Authority.

Immediately upon appointment and assumption of powers and authority by
the Administrator, all financial and logistical resources, facilities, and equipment shall
be released and put under the control of the Authority. All organizations and
agencies integrated and absorbed by the Authority shall use funds or resources on
quarterly basis upon enactment of this Act.

Section 14. Transfer and Integration of personnel, facilities, equipment,
property and other assets. - Immediately upon completion of the Implementing
Rules and Regulations (IRR) of this Act, the absorption and integration process shall
‘commence on the first day of the quarter of the year following such completion.

Initially appointed directors and members of the Ad Hoc Committee may
continue to serve in their official capacity with the Authority if duly qualified and
appointed in accordance with CSC laws, rules and regulations on eligibility.

Member employees and personnel of the integrated agencies may opt to
remain with their original government agency affiliation or be transferred to and
absorbed by the Authority, which option must be exercised within ninety (90) days
from notice of the absorption.

Section 15. Headquarters, Offices and Location. - The Transportation
Security Authority (TSA) shall have its central office and headquarters at the
Transport Security Authority Hangar (formerly PADC Hangar 4) along the Domestic
Road, Pasay City or at the OTS-DOTC office at comer Andrew Avenue & Tramo
(property owned by the MIAA), Pasay City or to any place in Metro-Manila as the
authority may deem proper and appropriate.

The Amount of Php50,000,000.00 or at least Ten Percent (10%) of the initial
funding of the Authority shall be appropriated to refurbish and renovate the PADC
hangarlOTS-DOTC office into a security center as well as to relocate the PADC to
another hangar of its choice for its offices, if necessary.


Section 16. Appropriation. - For purposes of reorganizing and constituting
the Authority, and for carrying out the provisions of this Act, the Authority shall have
an initial funding of FIVE HUNDRED MILLION PESOS (Php500,000,000.00). In
addition, the appropriation, funding and/or budget of the absorbed and integrated
agencies under Section 13 of this Act, shall be transferred to the Authority.
Appropriation for the succeeding years shall be included in the annual General
Appropriations Act

Section 17. Suppletory effect of the Revised Penal Code. - The Revised
Penal Code shall have a suppietory effect to the provisions of this Act.

Section 18. Implementing Rules and Regulations. - The Transport Security
Authority shall promulgate within sixty (60) working days from affectivity of this Act,
Rules & Regulations as maybe necessary to ensure the efficient and the effective
implementation of the provisions of this Act.

Section 19. Repealing Clause. - All laws, executive orders, letters of
instructions, rules and regulations and other issuances, or provisions thereof, which
are inconsistent with the provisions of this Act are hereby repealed, amended or
modified accordingly.

Section 20. Separability Clause. - The provisions of this Act are hereby
declared separable. If any provision or portion thereof shall be held invalid or
unconstitutional, the other provisions will remain in full force and effect.

Section 21. Effectivity. - This Act shall take effect after fifteen (15) days
following its publication in two (2) national newspapers of general circulation, or in
the Official Gazette, which ever comes first.

Approved,