REPUBLIC OF THE PHILIPPINES RECEIVED

\
HOUSE OF REPRESENTATIVES ome JUL 0 2019
Quezon City TIME. Sat

EIGHTEENTH CONGRESS
First Regular Session

House Bill No, 1960

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

EXPLANATORY NOTE

The tourism industry has significantly contributed to our country's economic growth and
development. The influx of millions of foreign travelers who wish to enjoy the natural beauty
of our country contributed to the increase in tourist expenditure revenue which translates to
profits for our tourism establishments such as hotels and resorts, and employment to
thousands of Filipinos in the tourism industry.

However, in order for us to sustain this growth and for us to encourage others who would
want to explore the natural splendor of our country, we need to enhance the country's
reputation as a tourist-friendly country. We must establish a thriving and responsible travel
industry which provides quality services, not only to foreign travelers but domestic travelers
as well.

This bill seeks to ensure that travel agents only provide the highest quality service, one which
is fair, effective, responsive and courteous by regulating their profession. The bill also seeks
to protect the interests of both foreign and local travelers. In view of the foregoing,
immediate approval of this measure is earnestly sought.



REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS

First Regular Session

House Bill No. 1960

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

AN ACT
DEFINING AND REGULATING THE TRAVEL AGENTS PROFESSION

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

SECTION 1. Short Title. This Act shall be known as the "Travel Agents Act of
2016".

SEC. 2. Declaration of Policy.- It is the policy of the State to promote Philippine
tourism as an indispensable element ofthe national economy. Thus, the State shall enhance
the reputation of the country as a tourist-friendly country in Asia by protecting the interests of
the local and foreign travelers in the Philippines.

SEC. 3. Definition of Terms.-As used in this section, the term-

(1) "Philippine Tourism Authority or PTA" pertains to the existing
implementation arm of the Department of Tourism.

(2) "License" means a license granted under this Act.

(3) "Licensee" means any person who holds a license granted to him or any other
person in its behalf.

(4) "Secretary" pertains to the secretary ofthe Department of Tourism (DOT).
SEC. 4. Application of This Act. ~

(1) Nothing in this Act shall be construed as requiring any executor,
administrator, trustee, liquidator, official receiver, trustee in bankruptcy of a
bankrupt estate, trustee under a composition or scheme of arrangement or
under a deed of arrangement or under a deed of assignment, committee of the
estate or person of a mentally ill person, or manager of the property of an
incapable person, for the purpose of performing his functions, exercising his
powers or carrying out his duties as such, to hold a license:


(2) Notwithstanding anything in subsection (1), it shall not be lawful for any of
the persons referred to in that subsection in whom is vested the management
of the business of any travel agent to carryon that business at any time after
the expiration of three (3) months from the date on which the management of
that business was so vested, unless that person holds a license;

(3) Nothing in this Act shall be construed as relieving any person from the
obligation to take out a license under any written law for the performance of
any function, the exercise of any power, or the carrying out of any duty for
which a license shall not have been required if this Act had not been passed or
to pay the fee payable in respect of any such license.

(4) Nothing in this Act shall be construed as requiring the Official Assignee
performing his duties as the trustee in bankruptcy of the property of a bankrupt
to hold a license.

SEC. 5. Definition of the Functions of a Travel Agent.—

(1) Subject to this section, a person carries on the business of a travel agent if
he/she —

(a) sells tickets entitling an individual to travel, or otherwise arranges for a
person a right of passage on any conveyance (not being a prescribed
conveyance);

(b) sells to, or arranges or makes available for, a person rights of passage to,
and hotel or other accommodation at, one or more places (being places
within or outside the Philippines, or some of which are within and others
of which are outside the Philippines);

(c) purchases for resale the right of passage on any conveyance (not being
prescribed conveyance);

(d) carries out such activity as may be prescribed; or

(€) holds himself out as, or advertises that he is, willing to carryon any activity
referred to in paragraph (a), (b), (c) or (d).

(2) An individual does not carryon the business of a travel agent by reason only of
carrying on in the course of his employment any activity referred to in
subsection (1).

(3) A person does not carryon the business of a travel agent in respect of any
activity referred to in-

(a) subsection (1)(a) ithe carries on the activity in respect of a conveyance of
which he is the owner; or

(b) subsection (1)(b) ifhe carries on the activity in respect of a conveyance and
place of accommodation of which he is the owner.


(4) A person does not carryon the business of a travel agent by reason only of
holding himself out as, or advertising that he is, willing to carry on any
activity to which subsection (3)(a) or (b) applies.

SEC. 6. The Role of the Philippine Tourism Authority. The Department of Tourism
thru the Philippine Tourism Authority or PTA shall be responsible for the administration
ofthis Act and may authorize any of its officers to exercise any of the powers conferred upon
and perform any of the functions imposed upon PTA by this Act on its behalf,

SEC. 7. Persons Carrying on Business of Travel Agent to be Licensed.

(1) No person shall carry the business of a travel agent unless he is the holder of a
license granted to him or any other person on his behalf.

(2) Any person who contravenes or fails to comply with subsection (1) shall be
guilty of an offense and shall be liable on conviction to a fine not exceeding
P20,000.00 or to imprisonment for a term not exceeding two (2) years or to
both,

SEC. 8. Application for License.

(1) Any person who desires to obtain a license shall make an application to the
PTA in such form as the PTA may require.

(2) Upon receiving an application under subsection (1), PTA shall consider the
application and may grant a license, with or without conditions, or refuse to
grant a license.

(3) PTA shall refuse to grant a license if-

(a) satisfactory evidence has not been produced of the good fame and
character of the applicant or, if the applicant is a company, of its
officers holding a managerial or an executive position or, ifthe
applicant is a firm, or the members of the firm;

(b) satisfactory evidence has not been produced to show that the applicant
isa fit and proper person to hold a license;

(©) the applicant or, if the applicant is a firm, any member of the firm, has
been convicted of any offense involving fraud or moral turpitude or, if
the applicant is a company, any of its officers holding a managerial or
an executive position has been convicted of any offense involving
fraud or moral turpitude; or

(A) PTA considers it in the public interest to do so

(4) PTA may at any time vary or cancel any of the existing conditions of a license
or impose conditions or additional conditions thereto.


(5) PTA shall, prior to taking any action under subsection (4), notify its intention
to take such action to the licensee concerned and shall give the licensee an
opportunity to submit reasons why the conditions of his license should not be
so varied or cancelled.

(6) Where a license is subject to conditions, the licensee shall comply with those
conditions,

(7) Any person who is aggrieved by a decision of the PTA under this section may,
within one month of being notified of the decision of the PTA, appeal against
such decision to the Secretary of the Department of Tourism whose decision
shall be final.

SEC. 9. Limit as to Number of Licenses Granted.- PTA may, with the approval of
the Secretary of the Department of Tourism, limit the number of licenses to be granted under
this Act.

SEC. 10. Annual License Fee.- Every licensee shall pay such license fee as may be
prescribed by PTA.

SEC. 11. Displaying of License.

(1) Every licensee shall exhibit his license or a certified copy thereof in a
conspicuous place at his principal place of business and at every branch where
the licensee carries on the business of a travel agent.

(2) Any person —
(a) who contravenes or fails to comply with subsection (1); or

(b) who, not being the holder of a license, keeps up or exhibits on or near
his office, house or place of business or exhibits anywhere or allows to
remain unobliterated any sign, writing, painting or other mark
implying that such office, house or place of business is that of a person
licensed to carryon the business of a travel agent, shall be guilty of an
offense and shall be liable on conviction to a fine not exceeding
20,000.00 or to imprisonment for a term not exceeding two (2) years
or to both.

SEC. 12. Revocation and Suspension of License.-
(1) PTA may by order revoke or suspend a license-
(a) if PTA is satisfied that the licensee-
(i) has ceased to carryon the business for which he has been

licensed or, if the licensee being a company, goes into
liquidation or is wound up or otherwise dissolved;


(ii) improperly obtained his license contrary to the provisions of
this Act;

(iii) is no longer a fit and proper person to continue to hold the
license;

(iv) has been convicted of any offense involving dishonesty or
moral turpitude or, if the licensee is a company, any of its
officers holding a managerial or an executive position or, if the
licensee is a firm, any member of the firm has been convicted
of any offense involving fraud or moral turpitude;

(v) _ is carrying on or has carried on the business of a travel agent in
such a manner as renders him unfit to continue to hold a
license;

(vi) _ is contravening or has contravened any of the provisions of this
Act or any regulations made thereunder; or

(vii) has been convicted of any offense under this Act or any
regulations made thereunder or, if the licensee is a company,
any of its officers holding a managerial or an executive position
has been convicted of any offense under this Act or any
regulations made thereunder, or

(b) if PTA considers it in the public interest to do so.

(2) PTA shall, before revoking or suspending any license under subsection (1),
give the licensee concerned notice in writing of its intention to do so,
specifying a date, not less than 21 days after the date of the notice, upon which
such revocation or suspension shall take effect and calling upon the licensee
concerned to show cause to the PTA why his license should not be revoked or
suspended.

(3) When PTA has revoked or suspended a license under subsection (1), PTA
shall forthwith inform the licensee concerned by notice in writing of the
revocation or suspension.

(4) The person whose license has been revoked or suspended may, within 14 days
after the receipt of the notice referred to in subsection (3), or such extended
period of time as the Secretary of the Department of Tourism may allow,
appeal in writing against the revocation or suspension to the Secretary whose
decision shall be final.

(5) An order of revocation or suspension shall not take effect until the expiration
of a period of 14 days after PTA has informed the licensee concerned of the
order,

(6) If within that period the licensee concerned gives due notice of appeal to the
Secretary, the order shall not take effect unless the order is confirmed by the


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Secretary or the appeal is for any reason dismissed by the Secretary or is
withdrawn,

SEC. 13. Effect of revocation and suspension oflicense.~

(1) Where an order of revocation or suspension becomes effective under section
12, the licensee concerned shall forthwith cease to carryon the business of a
travel agent.

(2) Subsection (1) shall not prejudice the enforcement by any person of any right
or claim against the licensee concerned or by the licensee concemed of any
right or claim against any person arising out of or concerning any matter or
thing done prior to the revocation or suspension ofthe license.

SEC. 14. Furnishing incorrect particulars in application.- Any person who in any
application for a license makes any statement which is not correct in any material particular
shall be guilty of an offence and shall be liable on conviction to a fine not exceeding
P10,000.00.

SEC. 15. Wrongful conversion and false accounts.
(1) Any licensee who —
(a) fraudulently converts to his own use or to the use of any other person —
(i) any money or part thereof received by him on behalf of any
person in respect of any transaction in his capacity as a travel

agent; or

(ii) any money or part thereof so received which are held by him in
trust pending the completion of any transaction;

(b) fraudulently omits to account for, deliver or pay-

(i) any such money or part thereof so received by him on behalf of
any person to such person; or

(ii) any such money or part thereof so received by him which are or
were held by him in trust as aforesaid pending the completion
of the transaction to the person or persons entitled to such
money; or

(©) fraudulently renders an account knowing such account to be false in
any material particular of —

(i) any such money or part thereof so received by him on behalf of
any person;


(ii) any money so received by him which is or was held by him in
trust pending the completion of any transaction or any part of
such money; or

(iii) expenses, commission or other charges incidental to any
transaction or proposed or contemplated transaction as a travel
agent, shall be guilty of an offence and shall be liable on
conviction to imprisonment for a term not exceeding 3-years.

(2) Nothing in this section shall be construed to limit or in any way affect the
provisions of any other written law.

SEC. 16. Power to search premises.- Any officer of PTA or any police officer, on
being satisfied upon any information and after any further inquiry which he thinks necessary
that there is good reason to believe that any place is used for the carrying on of the business
of a travel agent by a person who is not the holder of a license, may with such assistance and
by such force as is necessary, by day or by night ~

(a) enter or go to the place and search the place and all persons found therein;

(b) seize all documents and things reasonably supposed to have been used or
intended to be used in connection with the business of a travel agent which are
found in the place or on such persons; and

(c) detain all such persons until they and the place have been searched.
SEC. 17. Power to arrest. —

(1) Any police officer or any officer of PTA duly authorized in writing in that behalf
by the Board may without warrant arrest any person whom he reasonably suspects
to have committed an offence under this Act.

(2) Any police officer or any officer of PTA duly authorized in writing in that behalf
by PTA arresting a person under subsection (1) may search that person and take
possession of all articles found on him which, there is reason to believe, were used
in connection with the offense.

(3) Every person so arrested shall be taken to the PTA office or a police station.
(4) No woman shall be searched except by a woman.

SEC. 18. Power to Investigate.- In any case relating to the commission of an offense
under this Act, any police officer and any officer of PTA duly authorized in writing in that
behalf by the PTA may seize items or evidence connected with the commission of the
offense

SEC. 19. Powers of the PTA.- Any police officer and any officer of the PTA duly
authorized in writing in that behalf by the PTA shall, for the purposes of the execution of this
Act, have power to do all or any of the following:


(1) to enter, inspect and examine, by day or by night, the place of business of any
licensee;

(2) to require the production of records, accounts and documents kept by a
licensee and to inspect, examine and copy any of them; and

(3) to make such inquiry as may be necessary to ascertain whether the provisions
of this Act are complied with so far as regards any person employed by a
licensee to assist in the work of the travel agent.

SEC. 20. Obstruction of search, etc.- Any person who ~

(1) refuses any police officer or any officer of the Board authorized to enter or
search access to any place;

(2) assaults, obstructs, hinders or delays him in effecting any entrance which he is
entitled to effect under this Act, or in the execution of any duty imposed or
power conferred by this Act;

(3) fails to comply with any lawful demand ofa police officer or an officer of the
Board in the execution of his duty under this Act; or

(4) refuuses or neglects to give any information which may reasonably be required
of him and which he has it in his power to give, shall be guilty of an offence
and shall be liable on conviction to a fine not exceeding P10,000.00 or to
imprisonment for a term not exceeding 12 months or to both.

SEC. 21. Liability of directors, partners, etc. —

(1) Where an offense under this Act has been committed by a company, any
person, who at the time of the commission of the offence was a director,
secretary, manager or other officer of the company or who was purporting to
act in any such capacity, shall be deemed to be guilty of that offense and shall
be liable to be proceeded against and punished accordingly unless he proves
that the offense was committed without his consent or connivance and that he
exercised such diligence to prevent the commission of the offense as he ought
to have exercised having regard to the nature of his function in that capacity
and to all the circumstances.

(2) Any person who would have been guilty of an offense if anything had been
done or omitted to be done by him personally shall be guilty of the offense and
shall be liable to the same penalty if such thing had been done or omitted to be
done by his partner, agent or servant in the course of partnership business or in
the course of his employment, as the case may be, unless he proves that the
offense was committed without his knowledge or consent and that he took all
reasonable precautions to prevent the doing or omission to do such thing.

(3) Nothing in subsection (2) shall relieve any partner, agent or servant from any
liability for an offense.


SEC. 22. Disclosure of information. ~

(1) A person shall not disclose any information obtained by him in connection
with the administration or execution of this Act, unless the disclosure is made

(a) with the consent of the person from whom the information was
obtained;

(b) in connection with the administration or execution of this Act;

(0) for the purposes of any legal proceedings arising out of this Act or of
any report of such proceedings; or

(d) for the purpose of objecting to an application for a license or of any
investigation conducted under this Act.

(2) Any person who contravenes subsection (1) shall be guilty of an offense and
shall be liable on conviction to a fine not exceeding P5,000.00 or to
imprisonment for a term not exceeding 6 months or both

SEC. 23.Service of notices, orders and subpoenas.- Any notice, order, determination,
certificate or subpoena that may be given, made or issued under this Act may be served —

(1) by delivering it personally to the person to whom it is addressed; or
(2) where it is addressed to the licensee —

(a) by delivering it to any place shown on the application for the license as
the licensee's place of residence or business and by leaving it there
with some person for that licensee; or

(b) by posting it by registered post in an envelope duly stamped and
addressed to the person to whom it is addressed at any place shown on
the application for the license as the licensee's place of residence or
business, and shall be deemed to have been served upon is being so
delivered or, in the case of a notice, order, certificate or subpoena
served as referred to in paragraph (b)(ii), shall be deemed to have been
served when it would be delivered in the ordinary course of post.

SEC. 24. Service of notice, summons, writ or other proceedings on PTA.- Any
notice, summons, writ or other proceedings required to be served on PTA may be served by
being left with some person apparently employed in the administration of this Act at the PTA
office or, in the case of a notice, by posting it by registered post in an envelope duly stamped
and addressed to PTA at its office, and shall be deemed to have been served upon its being
left or, in the case of a notice served by so posting it, shall be prima facie deemed to have
been served when it would be delivered in the ordinary course of post


SEC. 25. Authentication of documents Every summons, process, demand, order,
notice, statement, direction or document requiring authentication by PTA may be sufficiently
authenticated without the seal of the PTA if signed by the General Manager of PTA.

SEC. 26. Sanction for prosecution.- No court shall take cognizance of any offense
under this Act or any regulations made hereinafter except with the sanction in writing of the
Public Prosecutor.

SEC. 27. Conduct of proceedings. Proceedings in respect of any offense under this
Act or any regulations made hereinafter may be conducted by any officer authorized in
writing in that behalf by the General Manager of PTA.

SEC. 28. Composition ofoffense. -

(1) The PTA may, in its discretion, compound any offense under this Act or any
regulations made hereinafter which is prescribed as a compoundable offense
by collecting from a person reasonably suspected of having committed the
offense a sum not exceeding P5,000.00.

(2) The PTA may, with the approval of the Secretary, make regulations to
prescribe the offenses which may be compounded.

SEC. 29. Regulations.-
(1) PTA may, with the approval of the Secretary, make regulations generally for
the carrying out of the provisions of this Act and, in particular, may make
regulations for all or any of the following purposes:

(a) prescribing the information and documents to be furnished by an
applicant for a license;

(b) prescribing the forms to be used under this Act;

(©) prescribing the procedure to be followed on applications and other
proceedings under this Act;

(d) prescribing the books, accounts (including trust accounts) and records
to be kept by a licensee and the form and mode of keeping such books,
accounts and records;

(©) prescribing the fees payable in respect of licenses granted under this
Act;

(0) prescribing the conditions for a license granted under this Act;

(g) regulating the conduct of travel agents in their business and prescribing
a code of conduct for travel agents; and

(h) exempting any persons or classes of persons from the provisions of this
Act.


(2) Such regulations may provide that a contravention thereof shall be punishable
with a fine not exceeding P20,000.00 or with imprisonment for a term not
exceeding 12 months or with both and, in the case of a continuing offense,
with a further fine not exceeding PI,000.00 for every day during which the
offense continues after conviction.

SEC. 30. Separability Clause.- If any provision of this Act is declared
unconstitutional or invalid, the remainder thereof not affected thereby shall continue to be in
full force and effect.

SEC. 31. Repealing Clause.- All laws, decrees, orders, rules and regulations or other
issuance or parts thereof inconsistent with the provision of this Act are hereby repealed,
amended or modified accordingly.

SEC. 32. Effectivity.- This Act shall take effect fifteen (15) days after its publication

in at least two (2) newspapers of general circulation.

Approved,

u