REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

5458

House Bill No.

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

‘The mode of transportation has exceedingly improved at present with the introduction of the
Roll on/Roll off ship or the so-called "Ro-Ro”. This has been well-received by businessmen
and entrepreneurs for it allows them to transport their goods to any part of the country in a
less costly manner. Similarly, individuals who do not have enough budget to cover fares for
boats and airplanes find the "Ro-Ro" a good economical alternative.

While the Roll on/Roll off ship program of the government has drawn a lot of patronage from
the public, to some, taking the "Ro-Ro" could be tiresome. The concept of "Ro-Ro” is
basically a passenger ferry on short sea routes. Public buses have to go to the nearest port
where available ferries will carry it to the next port of destination. This being the case,
passengers have to disembark from the ferries and return to the buses several times so that
they will be able to continue with the duration of the travel.

This bill intends to provide the public with another mass transport system that is cheaper,
faster, safer and reliable. It also envisions enhancing agricultural productivity and promoting
interregional trade and commerce.

With the enactment of this bill, the public will have an opportunity to travel in any part of
Luzon, Visayas or Mindanao via a railway system that links the three islands of the
Philippines. Furthermore, this bill will bring about the consolidation of Philippine National
Railways (PNR), the Light Rail Transit Authority (LRTA), the Panay Railways and the North
Luzon Railway Corporation (NLRC) including all other rail offices and agencies into one
entity which will exercise overall authority and management over the general conduct of the
railway system of the country.

In view of the foregoing, the immediate approval of this bill is earnestly sought.

“ARWC. ALEJANO


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bi No. 5458

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
INSTITUTING THE PHILIPPINE RAILWAY AUTHORITY AND FOR OTHER
PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:
ARTICLE I
GENERAL PROVISIONS

SECTION 1. This Act shall be known as the "Philippine National Railways Act of
2017."

SEC. 2. Declaration of Principles and Policies. —

a) The State shall promote the railway industry as an instrument for national progress and
prosperity;

b) The State shall establish a National Railway System that is cost-effective, reliable,
efficient, accessible and sustainable;

©) The State shall promote the participation of the private sector in the building and
construction of railway infrastructure,

4d) The State shall promote the cooperation between the government and the private sector
including the local government writs in the development, implementation and operation
of railway systems; and

e) The State shall promote the safety and security of the general railway riding public and
provide for their convenience.

SEC. 3. Purposes. - This Act shall have the following purposes

a) To enhance agricultural productivity; To accelerate the industrialization of the
countryside;

b) To enhance tourism in the countryside;

©) To decongest the metropolis;

4) To depollute the metropolitan areas;

e) To decentralize. development to the rural areas;

1) To reduce national dependence on oil imports:

g) To reduce the importation of vehicles;

h) To reduce the cost of road maintenance;

i) To promote inter-regional trade and commerce;

j) To facilitate the collection and transportation of garbage,

k) To facilitate the movement of people, goods and services;


1) To provide cheaper, faster, safer and reliable mass transport systems; and
m) To generate job opportunities.

ARTICLE I
DEFINITION OF TERMS

SEC. 4. Definitions. - As used in this Act, the following terms shall be defined as

follows:

a) "Railway" means an undertaking that is operated for the purposes of transporting
individuals, goods and commodities or anyone or more of them by means of rolling
stock operated on track, but does not include an urban rail transit system;

b) "Urban Rail System" means any undertaking that is a street railway, tramway, light
rail transit or similar undertaking the purpose of which is to transport the general
public within an urban area;

©) "Subway" means underground railroad;

d) "Maglev" means magnetic levitation train that operates at the speed of SO0k ms per
hour,

e) "Depot" as used in this Act means an area where the vehicles are parked for
maintenance, repair and reconditioning:

1) "Station" means loading and unloading area for rail commuters;

2) "Rolling Stock" means any locomotive or railway car that operates on track and any
other vehicle that by design or by the way it is equipped is capable of being operated
‘on track;

h) "Track" means railway track and includes any land or right of way on which the
railway track is located and any signal apparatus used in respect of the operation of
the railway track;

i) "Structural Facilities" means, in respect of railway, bridges, tunnels, overpasses,
culverts, crossings and similar structures:

j) "Public railway" means a railway that is operated for the purposes of transporting
individuals, goods and commodities or anyone or more of them for a toll or fee, but
does not include, an amusement railway, or an industrial railway;

k) "Amusement Railway" means a railway that is operated wholly within the confines of
‘an amusement, historical or similar park or site, for the purpose of providing rides to
individuals on rolling stock and is not operated for the purposes of transporting goods
‘or commodities for a toll or fee or of being a common carrier;

1) "Industrial Railway" means railway that transports only goods or commodities that
‘are manufactured, refined or otherwise produced, processed or handled by the person
who operates the railway or on whose behalf the railway is operated, and is operated
wholly or in part within the confines of the industrial site on which goods or
commodities are manufactured, refined or otherwise produced, processed, handled,
and is not operated for the purposes of transporting goods and commodities for a toll
or a fee or of being a common carrier,

m) "Approval" means an approval granted under this Act and includes an amendment to

means the Philippine National Railway Authority;
1y" means the minister/head of the Philippine Department of Transportation
and Communications,



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p) "National Railway Administrator’ means a person appointed as Chief Operating
Officer of the Philippine National Railway Authority;

q) "Railway Safety Officer" means a person designated as a railway safety officer and
includes any person authorized by the Railway Regulatory Board to carry out duties
or functions on behalf of or in place of a railway safety officer.

ARTICLE IL
STRUCTURE OF THE NATIONAL RAILWAY INDUSTRY

SEC. 5. The National Railway Industry shall be comprised of both the public and
private domains. (a) The public domain shall consist of two (2) bodies: the Philippine
National Railway Authority and the Railway Regulatory Board. These bodies are responsible
for all sovereign tasks relative to the development of the railway industry. (b) The private
domain of the national railway industry encompasses ownership and operation of railway
systems and its maintenance. Specifically, the role of the private sector in the railway
industry includes ownership systems, provision of rolling stocks and the operation of the
same under the Build-Operate-Transfer (B-O- T) scheme.

SEC. 6. Responsibilities in the Public Domain. - The sovereign tasks to be managed
in the public domain of the railway industry include the ownership, operation and
maintenance of the existing railway infrastructure

SEC. 7. Responsibilities in the Private Domain. - Activities in the private domain
also include the ownership, operation and maintenance of all kinds of railway systems and
services to which this law is applied and the maintenance of the means required for the
operation of the services. The right to operate and maintain public railways by the public
sector will be tendered by the Philippine National Railway Authority, and concession
contracts are awarded to the service provider which is offering the best level of service in
accordance with the standards for railway safety and railway operation and maintenance at
lowest possible cost. It shall also provide details of the tendering procedures, bid evaluation
and technical as well as operational standards.

ARTICLE IV
PHILIPPINE NATIONAL RAILWAY AUTHORITY

SEC. 8. Philippine National Railway Authority, - The Philippine National Railway
Authority is hereby created with a Board of Directors composed of the Secretary of
Transportation and Communications as Chairman, the Director General of the National
Economic and Development Authority as Vice Chairman and the Secretaries of the
Departments of Public Works and Highways, Finance, Budget and Management,
Environment and Natural Resources, Interior and Local governments and the Chairman of the
Metro Manila Development Authority including the President of the Philippine Chambers of
Commerce and Industry as members.

The Chairman and the Members of the Board may designate their respective
alternates to the Board from among their own officials with the rank of undersecretaries.


establish a National Railw:
including the metropolitan areas in the Philippines as the Authority may determine

‘SEC. 9. Mandate. - The Philippine National Railway Authority is hereby mandated to
yy System covering the islands of Luzon, Visayas and Mindanao

SEC. 10. Powers, Duties and Functions. - The Philippine National Railway

Authority shall have the following powers, duties and functions:

a) To have continuous succession under its corporate name;

b) To sue and be sued;

©) To adopt, alter and use a corporate seal;

4) To amend and repeal its by-laws;

e) To acquire, own, hold, administer and lease such real or personal property as it
deems necessary or convenient in governing its business affairs and to lease,
mortgage, sell, alienate or otherwise dispose of any such real or personal property
held by it except its right-of-way;

1) To enter into any obligation, assign or accept the assignment of, and rescind any
agreement or contract’ necessary or incidental to the proper functioning of the
Authority;

g) To contract loans, indebtedness and credit accommodations, in any local or
convertible foreign currency, from any international financial institution, foreign
government entities and local or foreign private commercial banks or similar
institutions under such terms and conditions prescribed by law, rules and
regulations, and to issue commercial papers and bonds in connection therewith;

h) To construct, own, lease, operate and maintain public utilities, infrastructure
facilities and such auxiliary support services needed to develop, operate and
maintain a national railway system;

i) To design, construct, maintain and operate by itself or by delegation to, or through
contractual arrangement such auxiliary infrastructure support facilities as, but not
limited to, parking structures above or below the ground, including the means of
access;

j) To prescribe, fix and regulate the route of railway transport;

k) To receive donations, grants, request and assistance of all kinds and to utilize the
same;

1) To exercise the right of eminent domain in the name of the Republic of the
Philippines and in the acquisition of real estate by excess condemnation or escheat
proceedings, including appurtenant properties. The title thereto shall be registered
in the name of the Government and thereupon all such properties shall be
entrusted to the Authority as agent of the Government;

m) To form, establish, organize and maintain subsidiary corporations or joint ventures
formed in accordance with the Philippine Corporation Code;

n) To privatize any part or all of the railway system or any subsystem under the
Authority, in accordance with the law;

©) To promulgate such rules and regulations as may be necessary to carry out the
objectives of this Act, and to perform such other powers as may be necessary to
carry out the purpose of this Act;

p) To formulate and adopt a master plan for a national railway system with
ecological and environmental standards;

q) To promote and encourage the active participation of the private sector, both local
and international, and the local government units in the development,
implementation and operation of railway system:



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1) To implement or cause the implementation of the national railway plan, policies
and programs according to a schedule of priorities consistent with the needs and
available resources;

3) To control and develop, construct, operate and maintain railway facilities
including parking stations and terminals for freight, goods, and cargoes,

1) To regulate the schedule, frequency, routing and pricing of railway services; and

1u) To call upon any government ageney for such assistance as may be necessary in
the discharge of its duties and functions,

SEC. 11. Powers and Functions of the Board. ~ The powers of the Authority shall be
vested in and exercised by a Board of Directors, hereinafter referred to as the "Board"

‘The Board shall have the following powers and functions:

a) Formulate policies, rules and regulations, plans, projects and programs;

b) Direct the management, operations and administration of the Authority;

©) Create offices or positions necessary for the efficient operations of the Authority
and fix the remuneration and other emoluments of subordinate officers and
personnel of the Authority in accordance with the Revised Compensation and
Position Classification System, and to remove or otherwise discipline such
officers/employees for cause in accordance with Civil Service Rules and
Regulations;

d) Establish financial and operations targets for management as basis for evaluating
and monitoring corporate performance;

e) Authorize such expenditures as are in the interest of the efficient administration
and operations of the Authority; and

1) Exercise such other powers as may be necessary to accomplish the purposes for
which the Authority.

SEC. 12. Management. - The general conduct of the operations and management of
the Authority shall be vested in the National Railway Administrator who shall serve as the
Chief Executive Officer of the Authority and Ex-Officio Member of the Board. He shall be
primarily responsible in carrying out the projects and programs of the Authority as well as in
the implementation of its policies, rules and regulations including the execution of the
decisions of the Board,

‘The National Railway Administrator must be a natural-born citizen, at least thi
(35) years of age on the day of his/her appointment, of good moral character and with
recognized executive ability and competence in the field of transportation, business
administration, management, finance or law. He shall be appointed by the President of the
Republic of the Philippines and shall serve for a term of seven (7) years and renewable for
another term only

The National Railway Administrator shall be assisted by deputies for Metro Manila,
Luzon, Visayas and Mindanao, all of whom shall likewise be appointed by the President of
the Republic of the Philippines for a term of seven (7) years renewable for another term only.
‘These officers can only be removed for cause as provided under existing laws

SEC. 13. Duties and Responsibilities of the National Raitway Administrator. — The
administrator of the Authority shall have the following duties and functions:


Sseshaess

a) Appoint, subject to the confirmation of the Board, all the staff and personnel of
the Authority:

b) Execute, administer and implement the policies, programs, plans, guidelines and
regulations issued and adopted by the Board;

©) Direct and supervise the operations and administration of the Authority;

d) Direct and supervise the operations of all public railways;

©) Determine, subject to the approval of the Board and the concurrence of the
Department of Budget and Management, the staffing pattern and the number of
personnel of the Authority;

) Direct and supervise the preparation of the agenda for the meeting of the Board,
and to submit for the consideration of the Board such measures as he/she believes
necessary to carry out the purposes and objectives of this Act;

g) Represent the Authority in all its transactions with other offices, agencies and

instrumentalities of the government and to deal with any persons and entities,

public or private, domestic or foreign, on matters related to the mandate of the

Authority; and

Exercise such other powers and perform such other duties and functions as the

Board may assign or authorize.

h)

SEC. 14. Public Accountability. — To ensure public accountability, the Authority
shall be subject to the audit of the Commission on Audit (COA) and shall comply with all the
generally accepted accounting and auditing rules and regulations and those, which it may
hereafter promulgate pursuant to its constitutional mandate

SEC. 15. Merit System. — All officials and employees of the Authority shall be
selected and appointed based on the comprehensive and progressive merit system to be
established by the Authority immediately upon its organization and in accordance with Civil
Service law, rules and regulations. The hiring, promotion, transfer and dismissal of all its
personnel including temporary workers shall be governed by existing Civil Service laws,
rules and regulations.

ARTICLE V
ABOLITION OF RAIL EXISTING OFFICES AND AGENCIES

SEC. 16. Upon the approval of this Act, the Philippine National Railways (PNR),
Light Rail Transit Authority (LRTA), the Panay Railways and the North Luzon Railway
Corporation (NLRC) including all other rail offices and agencies shall be deemed abolished
and its projects, assets and liabilities transferred to and assumed by the Philippine National
Railway Authority

SEC. 17. The assets and liabilities of the EDSA Light Rail transit of the Department
of Transportation and Communications insofar as its existing Build-Lease Transfer Contract
with the Metro Rail Transit Cooperation (MRTC) are likewise deemed transferred to and
assumed by the Authority.

SEC. 18. The plantilla personnel of the existing rail offices and agencies holding
either permanent or contractual positions may be absorbed by the Authority of retire from
service, subject to existing laws and regulations and the guidelines that the Department of
Budget and Management may issue for the purpose.


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ARTICLE VI
RAILWAY REGULATORY BOARD

SEC. 19. A regulatory Board is hereby created composed of a Chairman and four (4)
members who shall be appointed by the President of the Philippines from among the list of
ten (10) nominees that the Board of the Philippine National Railway Authority shall submit to
the Office of the President. The National Railway Administrator shall sit in Board as ex-
officio member.

SEC. 20. Standards. The Regulatory Board shall set the necessary fare, safety and
security standards to be observed by all railway operators, public or private, in order to
sustain the development and operations of the rail industry, enhance the operations of rail
systems and ensure the safety of the rail-riding public and protect them from any form of
natural calamities and man-made disasters.

SEC. 21. Rules and Regulations. — The Philippine National Railway Authority may
formulate rules and regulations on the following:

a) Standards and specifications with respect to rolling stock, tack and structural facilities and
other equipment and apparatus used:

b) Construction, maintenance, repair and removal of track and structural facilities;

©) Permanent fencing and temporary fencing of Right-Of-Way and structural facilities and
the apportionment of costs with respect to that fencing:

4) Crossings of track and the use of those crossings;

e) Installation and use of signage, warning signals, barriers, operating signals and other
similar apparatus;

1) Qualifications of persons operating rolling stock and of persons carrying out functions
respecting the operation of track and of other equipment and matters ancillary to the
operation of rolling stock;

2) Materials to be provided;

Criteria to be met in order for an approval to be granted or renewed; (h. 1 ) requiring an

applicant or an operator of a railway to haye a safety management system and plan; (h.2)

the terms for which an approval may be granted or renewed:

i) Amounts of insurance of other security to be provided by or in the case of holders of
approvals, persons, carrying out construction of the railway and persons operating the
rolling stock or track:

i) Damages caused by or arising out of fires and the liability for those damages stated in
Section 57 of Article XII hereof,

k) Tariffs, rates and the provision of services for the public railways;

}) Limitations on the liability of operators of public railways insofar as the transportation of
goods and commodities in relation to Section 65 of Article XIII hereof,

m) Procedures and processes governing the resolution of disputes between shippers of goods
and commodities and the operators of public railways with respect to tariffs, rates and the
provision of services;

n) Accidents and other incidents;

(0) Cessation of services;

p) Information to be provided to the Board, the Authority and railway safety officers and
governing the use of that information;

4) Form and contents of notices of administrative penalties;

1) Amounts or the manner of determining the amounts, of the administrative penalties that
may be imposed by the Board;

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3) Amounts, or the manner of determining the amounts, of the administrative penalties that
may be imposed by a railway safety officer:

1) Periods for giving of notices of administrative penalties;

u) On any other matter necessary for the administration of the system of administrative
penalties; and/or

v) Measures that are to be taken by an operator of a railway to secure the railway against the
threat of terrorist activity including, without limitation, the filing with the Authority of
plans to ensure the security of the railway operation.

SEC. 22. — a) Railway Safety - Where railway installations and railway vehicles must
be built, they should meet optimal safety requirements in operation. These requirements are
met, when the installations and vehicles conform to the Safety Code which is prescribed by
the Board and approved by the Authority.

b) Safety measures need to be incorporated in the design of Railways taking into
consideration the following aspects:

(1) movement accidents at station entrances and exits;

(2) system integrity has to be planned and proven;

(3) restoration of limited service has to be trained;

(4) activities of passengers while in the premises of the stations particularly while
waiting in the platforms must be monitored and precautions prepared:

(5) safety equipment has to be installed on all relevant places, which have to be
coordinated with the Railway Regulator; and

(6) fire safety has to be guaranteed and precautions prepared with the local fire
brigades and coordinated with the Philippine National Railway Authority

SEC. 23. Railway Security. —
(1) Security measures shall be adopted in the operations of the public transport. In
the implementation thereof, all security issues shall be addressed taking into
account the following:
(1) Personal security;
(2) Personal security of staff and personnel of the railways:
(3) Protection of facilities and vehicles against damages, acts of
vandalism, and the like;

(2) There shall be an integrated and seamless security network that must consist of
mutually coordinated measures such as:
(1) Implementation of a passenger security center responsible for
coordinating all security-related measures,
(2) Initialization of cooperation between police and transport company’s
security and surveillance duties;
(3) Presence of personnel tailored to deal with potential threats in certain
districts, at certain stations, or on board trains;
(4) Installation of communication facilities such as emergency call push
butions and public address networks;
(5) Security-aware-design of facilities and vehicles, with a special
unobstructed visibility and ample lighting;
(6) Installation of facilities which will supervise the passenger areas and
trains, and to provide audible and visual information to passengers
both on board and within station areas.


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ARTICLE VIL
COMPLIANCE, ACCIDENTS, AND ADMINISTRATIVE PENALTIES

SEC. 24. Purposes of Inspections. — A railway safety officer may cary out
inspections under Section 21 of Article VI hereof for purposes of

(1) administering the railway legislation and the approvals;

(2) fostering compliance with the railway legislation and the approvals;

(3) fostering compliance with operating rules;

(4) fostering the safe operation of rolling stock, track, and structural facilities;

(5) fostering the maintenance of track and structural facilities so that they are safe;

(6) fostering with respect to the operation of railways, the safety of the general public
and of persons employed by or acting on behalf of operators of railways

SEC. 25. Inspection of Railways. —
a) A railway safety officer may carry out inspections of the following:
(1) any rolling stock;
(2) anything transported on roiling stock;
(3) any track;
(4) any structural facility; and/or
(5) any record, document, object, or thing that relates to the operation of a
railway

b) A railway safety officer, in carrying out an inspection under subsection (a), may do one or
more of the following,
(1) enter on or into any track, structural facility, rolling stock, building or any other
property associated with or operated by the operator of the railway;
(2) ride on any roiling stock;
(3) make inquiries of any person who is employed by or who carries out any duties or
functions for or in respect of the operator of the railway, and/or
(4) perform or cause to be performed tests or examinations of anything that may be
inspected under subsection (a).

SEC. 26. Production of Documents, etc. -

(a) A person who is subject to an inspections shall, when requested to do so by a railway
safety officer, produce for inspection within a reasonable period of time any record,
document, object, or thing that relates to the matter being inspected

(b) A railway safety officer may remove the record, document, object, or thing being
inspected and make copies or take photographs of it.

(©) Where a railway safety officer removes a record, document, object, or thing under
subsection (b), the railway safety officer may retain possession of the record, document,
object or thing only for the period of time that is reasonably required to make the copies
or take photographs of it, and shall, on having made the copies or having taken the
photographs, return the record, document, object, or thing to the person from whom it was
taken.

(@ Notwithstanding subsection (c), when inspecting a record, document, object, or thing, a
railway safety officer is of the opinion that for the purposes of this part the railway safety
officer must retain possession of the record, document, object, or thing for a longer period
of time than that permitted under subsection (c), the railway safety officer may retain
possession of the record, document, object, or thing for a longer period of time than that
permitted under subsection (c), the railway safety officer may retain possession of the

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record, document, object, or thing for a longer period of time if the railway safety officer
gives a receipt for the record, document, object, or thing to the person from whom it was
taken.

(©) Where a railway safety officer retains possession of a record, document, object, or thing
pursuant to subsection (d), the railway safety officer shall, once the record, document,
‘object, or thing has served the purposes for which it was retained, forthwith retum the
record, document, object, or thing to the person from whom it was taken.

(D) Ifa railway safety officer retains possession of a record, document, object, or thing under
subsection (d), the railway safety officer shall, where requested to do so by the person
from whom the record, document object, or thing was taken and if practicable to do so,
provide to that person a copy or a photograph of that record, document, object, or thing.

SEC. 27. Directions of Railway Safety Officer. — a) Where a railway safety officer
caries out an inspection, he may do one or more of the following:

(1) order the cessation of any activity carried out in respect of a railway, the
operation of any rolling stock, the operation of any track, or the use of any
structural facility, where the railway safety officer is of the opinion that that
activity, operation, or use is a danger to the safety of the public or persons
‘employed by or acting on behalf of the operator of the railway;

(2) order that any rolling stock, track, or any equipment used in respect of the
rolling stock or track be removed from service, where the railway safety
officer is of the opinion that the operation of the rolling stock, track, or
equipment is a danger to the safety of the public or persons employed by or
acting on behalf of the operator of the railway;

(3) issue directions restricting the speed or otherwise respecting the speed at
which rolling stock or a specific item or type or rolling stock may be operated
generally or over a specific portion of track;

(4) issue directions requiring repairs or maintenance to be carried out on rolling
stock, track, or structural facilities so that the rolling stock, track, or structural
facilities conform to the requirements of the railway legislation and any
approvals granted to the operator of the railway:

(5) suspend any person engaged in any activity concerning the operation of any
rolling stock, track, structural facility, or equipment from engaging in that
activity where the railway safety officer is of the opinion that the activity is a
danger to the safety of the public or persons employed by or acting on behalf
of the operator of the railway; and

(6) issue directions requiring any procedure or practice respecting the operation
of any rolling stock, track, structural facility, or equipment to be stopped or
changed so that the procedure or practice, in the opinion of the railway safety
officer, will conform to the requirements of the railway legislation and be
carried out in a safe manner.

b) Any order or direction given under this section may be given to the operator of a railway
or any person employed by or acting on behalf of the operator of the railway.

SEC. 28. Accidents. - a) The operator of a railway shall keep a record of every
accident involving rolling stock and shall forthwith report to the Authority any accident
involving any rolling stock that is reportable pursuant to the regulations;

b) Whether or not accident is reportable pursuant to the regulations, the Authority and
any railway safety officer may, with respect to any accident involving rolling stock:

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(1) enter on and proceed across any property for the purpose of gaining access to
where the accident occurred;

(2) enter on any property on which the accident occurred or on which rolling
stock or any goods or commodities being transported came to rest; and

(3) carry out an investigation into the accident and its causes

©) In carrying out an investigation under this section, the railway safety officer may
exercise any powers and carry out any functions that the Board may exercise and take
possession of and remove any rolling stock, goods, or commodities being transported on the
rolling stock, any equipment and any track or structural facilities involved in the accident for
the purposes of conducting tests, analyses, and other assessments in carrying out the
investigation.

SEC. 29. Railway Operator's Powers Regarding the Accident. - (a) For the purposes
of dealing with an accident involving rolling stock, the operator of the railway and any person
employed by or on behalf of that operator may:

(1) enter on an proceed across any property for the purpose of gaining access to
where the accident occurred:

(2) enter on any property on which the accident occurred or on which rolling
stock or any goods or commodities being transported came to rest; and

(3) carry out the work that is appropriate to deal with the accident and to remove
the rolling stock and any goods or commodities

b) A person exercising any powers under this section shall do so in a reasonable manner.

SEC. 30. Administrative Penalties. -

(a) Where the Board is of the opinion that an operator of a railway or a person employed
by or acting on behalf of an operator of a railway has failed to comply with the
railway legislation, an operating rules or an approval, any order made or direction
given by the Board, or any order made or direction given by the Authority or a
railway safety officer, the Authority may act under subsection (b).

(b) If a subsection (a) applies, the Board may, subject to the regulations, by notice in
writing given to that operator or person, require that operator or person to pay to the
Government and administrative penalty in the amount set out in the notice for the
failure to comply. or for each day or part of a day that the failure to comply occurs or
continues.

(c) Where a railway safety officer is of the opinion that an operator of a railway or a
person employed by or acting on behalf of an operator of a railway has failed to
comply with the railway legislation, an operating rule or an approval that governs the
operation of rolling stock, track or a structural facility, or an order made or direction
given by a railway safety officer, the latter may act under subsection (d)

(@) If subsection (c) applies. The railway safety officer may, subject to the regulations, by
notice in writing given to that operator or person, require that operator or a person to
pay to the Government an administrative penalty in the amount set out in the notice
for the failure to comply or for each day or part of a day that the failure to comply
occurs or continues.

(e) Where a person fails to pay an administrative penalty in accordance with a notice
under subsection (b) or (d), the Government may recover the amount owing in respect
of the penalty by an action in debt

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ARTICLE VIII
REVIEWS AND JUDICIAL RELIEF

SEC. 31. Definition of an Affected Person - a) in this part, “affected person” means:

(1) a person who has applied to the Authority for an approval or license to
operate;

(2) a person who has been granted an approval by the Authority;

(3) a person to whom an order or a direction has been given or who is subject to
an order made or direction given by the Authority;

(4) a person who owns or has an interest in land where that or the use of that land
is or may be affected by any expropriation that is or may be carried out or any
construction that is or may be carried out pursuant to an approval referred to in
Section 41,42, and 43 of Article X hereof, or

(5) any person whom the Board, in its discretion, accepts as an affected person.

) In this part, a reference to any action taken by the Authority is a reference to the fact that
Railway Authority has done one or more of the following

(1) refused to grant an approval;

(2) granted an approval;

(3) cancelled or suspended an approval in whole or in part;

(4) imposed, removed, or altered any term, condition, or restriction to which an

approval is subject;
(5) given an order or direction under the railway legislation;
(6) imposed an administrative penalty under the railway legislation.

‘SEC. 32. Application for Review or Hearing by the Board. - a) Where an action is
taken by the Authority or the affected person in respect of whom the action was taken, may
apply to the Board for a review of the action taken by the safety officer or within 30 days
from the date the action was taken.

b) With respect to any matter under the railway legislation other than an action taken
by the safety officer, an affected person may, with the consent of the Board, apply to the
Board for a hearing into the matter.

SEC. 33. Conduct of Review or Hearing by the Board, - a) On receiving application
under Section 4(a) of Article VII, for a review of an action taken by the safety officer, the
Board shall conduct a review of that action.

) On receiving an application under Section 4(b) of the same Article for a hearing in
respect of a matter other than an action taken by the safety officer, the Board may conduct a
hearing on the matter.

©) Whether or not an affected person has made an application for a review or a
hearing, the Board may conduct a review of an action taken by the safety officer or conduct a
hearing into any other matter under the railway legislation where the Board is of the opinion
that a review or a hearing should be conducted or the safety officer has requested the Board
to conduct a review or a hearing

SEC. 34. Decision of the Board. - a) in conducting a review of an action taken by the
safety officer, the Board may make an order confirming the action taken by the safety officer,
change the action taken by the safety officer or rescind the action taken by the safety officer.

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b) In making an order under subsection (a), the Board may make any decision or take
any action that the safety officer or a railway safety officer may take or take under the
railway legislation, make the order subject to any terms, conditions or restrictions, and give
any direction that the Board considers appropriate in the circumstances.

©) Where the Board hears a matter other than an action taken by the safety officer, the
Board may make any order and make the order subject to any terms, condition, or restriction
that the Board considered appropriate in the circumstances.

SEC. 35. Procedure before the Board, —
(a) For the purposes of conducting reviews and hearings before the Board, the Chair
and the other Members of the Board may

(1) summon and enforce the attendance of witnesses;

(2) compel witnesses to give evidence on oath or otherwise;

(3) compel witnesses to give evidence in person or otherwise; and

(4) compel witnesses to produce any record, object, or thing that relates to the

matter being heard.

(b) With respect to reviews and hearing before the Board, the Board may make rules
on the following:

(1) Notices to be given in respect of a review or hearing;

(2) Procedure before the Board;

(3) Adjournments of matters before the Board;

(4) Attendance of witnesses:

(5) Receiving and recording of evidence:

(6) Procedure in cases when a party to the review or hearing fails to appear or
attend the review or hearing:

(7) Authority of the Board to consider a matter without conducting a formal or
summary hearing and governing the procedure to be used in those
circumstances;

(8) Applicability of the 1997 Revised Rules of Court;

(9) Issuance and publication of decisions of the Board;

(10) Reconsideration of decisions made by the Board; and

(11) Costs

(©) Where the safety officer summoned to attend a review or hearing before the Board
cannot attend for a valid ground or grounds, the safety officer may in writing,
designate an employee under the administration of the Secretary and who is in the
opinion of the safety officer, knowledgeable with respect to the subject matter
under review. The designated employee shall attend the proceeding on behalf of
the safety officer and shall be deemed to have been the person summoned to
attend the review or hearing.

SEC. 36. Board Decision is Final. - Subject to the provisions in Section 25 of Article
VII, hereof, every decision or order of the Board is final and executor.

SEC. 37. Appeal from Orders or Decision of the Board. - (a) An appeal lies from the
decision of the Board of the Court of Appeal on a question of jurisdiction or on a question of
law.


b) No appeal shall be taken after 30 days from the date the Board has served written
notice of its decision on the person subject of the decision.

(©) In the event the decision rendered by the Board is elevated on appeal to the Court
of Appeals, the Board shall be duly represented before the Court

SEC. 38. Reconsideration of Railway Safety Officer's Order. - (a) \n this Section,
"order" shall mean a direction given in respect of an investigation or an administrative
penalty imposed under Section 23 of Article VI hereof.

b) Where a Railway Safety Officer issues an order, the person affected by the order
may seek reconsideration with the Safety Officer provided an application for reconsideration
shall first be filed with the Board:

©) The safety officer exercises discretion whether or not to conduct a summary
hearing in reconsidering an order;

(d) The Authority may confirm, modify, reverse, or rescind the order issued by the
railway safety officer.

ARTICLE IX
RIGHT OF WAY

SEC. 39. Right of Way. - It shall be the duty of the Authority to identify and establish
within three (3) years after the approval of this Act the alignment of a National Railway
System and once it is established and the right of way is acquired, the same cannot be the
object of sale, lease, or otherwise.

SEC. 40, Intrusion into the Right of Way. - Any intrusion into the right of way by
any person shall be punishable by imprisonment ranging from four (4) to six (6) years and the
demolition of any structure thereon shall be at the expense of the intruder.

ARTICLE X
CONSTRUCTION OF RAILWAYS

SEC. 41. Initial Construction of Public Railway. - A person shall not construct any
track or any structural facilities on any land for the purposes of constructing or developing a
public railway unless the Authority has granted to the person who is to be the operator of the
railway an approval to carry out that construction on that land.

SEC. 42. Subsequent Construction of Public Railway. - Where a person wishes to
construct any track or structural facilities in respect of a public railway on land that is not
already included in an existing approval, that person shall not construct that track or those
structural facilities on that land unless the Authority has granted to the operator of the railway
an approval to carry out the construction on that land.

SEC. 43. Construction of Industrial Raibway. - Where a person wishes to construct
any track or structural facilities in respect of an industrial railway on land that the industrial
railway intends to acquire by means of expropriation, that person shall not construct that
track or those structural facilities on that land unless the Authority has granted to the operator
of the railway an approval to carry out that construction on that land.

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SEC. 44. Construction of Track Crossing. - A person shall not, in respect of any
railway, construct on, across, over, or under a highway unless the Authority has granted to
the operator of the railway an approval to carry out that construction, or construct a highway
on, across, over, or under track unless the Authority has granted to the road authority an
approval to carry out that construction

SEC. 45. Where, in respect of any railway, tracks are located on, across, over, or
under a highway, and a person wishes to replace any structure or method by which the tracks
are located on, across, over, or under the highway with another structure or method, a person
shall not change the existing structure or method with a different structure or method unless
the Authority has granted to the operator of the railway an approval to do so.

SEC. 46. Where the operator of the railway is unable to agree with the road authority
as to the apportionment of costs associated with the construction, the operator of the railway
or the road authority may apply to the appropriate agency to apportion the costs.

ARTICLE XI
EXPROPRIATION AND OVERRIDING OBJECTIVE OF CONSTRUCTION

SEC. 47. For the purposes of constructing track or structural facilities in respect of a
public railway, the operator of the railway may expropriate land in accordance with the
existing expropriation procedures,

SEC. 48. For the purposes of constructing track or structural facilities in respect of an
industrial railway on land that the operator of that railway does not own or otherwise have the
tight to use under an agreement with the owner of that land, that operator may, if the
appropriate expropriation agency grants to that operator an approval to proceed under the
existing expropriation procedures, expropriate land in accordance with the said rules

SEC. 49, Where an approval is required before any construction or work may be
carried out under the railway legislation, a person shall not expropriate land for the purposes
of that construction or work until the Authority has granted that approval

SEC. 50. Where construction or work is being carried out pursuant to an approval
granted under the two preceding articles, and the Authority is of the opinion that the
construction or work is not being carried out in accordance with the railway legislation or that
approval, the Authority may at any time give notice to the operator of the railway or the
person carrying out the construction or work to stop the construction or work

SEC. 51. Where the Authority gives a notice under the previous section, the person
carrying out the construction or work shall stop carrying out the construction or work and
shall not recommence the construction or work until the Authority grants an approval to do
so,

SEC. 52. Prohibition Against Issuance of Restraining Orders and Preliminary
Injunctions or Preliminary Mandatory Injunctions. - No court in the Philippines, except the
Supreme Court, shall have the jurisdiction to issue any restraining order, preliminary
injunction, or preliminary mandatory injunction in any case, dispute, or controversy involving
any contract or project involving the PNRA, to prohibit any person or persons, or entity or
government official from proceeding with, or continuing the execution of implementation of

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any such contract or project, or pursuing any lawful activity necessary for the execution,
implementation or operation of such contract or project.

ARTICLE XII
OPERATION OF RAILWAY

SEC. 53. Operations to be Conducted Safely. - The operator of a railway shall-
a) Ensure that-

(1) The track and the structural facilities are constructed, used and maintained in
accordance with the railway legislation and the operating rules, if any, and the
approvals granted in respect of the track and structural facilities, and

(2) The rolling stock is maintained and operated in accordance with the railway
legislation and the operating rules, if any, and the approvals granted in respect
of the operation of the rolling stock

b) Generally maintain and operate the rolling stock, track and structural facilities in
such a manner that the rolling stock, track and structural facilities are safe to be
used for the purposes for which they are intended and are not a danger to the
public or persons employed by or acting on behalf of the operator of the railway.

SEC. 54. Obstructing Navigation. — As person shall not, in respect of any railway
construct, repair, maintain or remove track or structural facilities, or operate rolling stock, in
such a manner so as to obstruct or impede the free navigation of or on a river, stream, canal
or body of water.

SEC. 55. Drainage. — A person carrying out the construction, repair, maintenance or
removal of any track or structural facility in respect of any railway shall endure that there is
constructed and maintained, (a) in the case of track. along each side of, across and under the
track, and (b) in the case of a structural facility, as are necessary for the structural facility;
proper and adequate ditches and drains that are connected with ditches. Drains, drainage
works and watercourses on the land over which the track crosses or on which the structural
facility is located so as to provide sufficient outlet to drain and carry off water in such a
manner that the existing natural drainage and any existing artificial drainage of the land is not
obstructed or impeded

SEC. 56. Fire. —

a) The operator of a railway shall at all times maintain and keep the rights of way and track
fee from the dead or dry glass, weeds and any other unnecessary combustible matter.

b) Subject to the regulations, when the damage is caused by a fire started by or arising out of
the operation of rolling stock, track or structural facilities or any other operations carried
out by the operator of the railway with respect to the railway, the operator of the railway
is liable for the damage caused by that fire. For the purpose of this section, the operator of
a railway-

(1) Has an insurable interest in all property on or along the rights of way for any
damage for which the operator of the railway may be liable, and
(2) May procure insurance on the operator's behalf of that property.

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SEC. 57. Highway Crossing. ~ Where construction is carried out to lay track on,
across, over or under a highway, the person carrying out the construction shall
a) Carry out the construction so as to allow vehicles using the highway adequate
passage; and
b) On completion of the construction restore the highway to as good condition as,
the highway was in immediately before the construction was commences.

SEC. 58. Crossing of Landowners.

a) Where a person owns land that is located on both sides of a right of way for track,
and if it were not for that right of way, that land would be joined together forming a single
area of land, the operator of the railway shall, on the request of the owner of the land, provide
a crossing across the right of way and any track located on the right of way that is appropriate
for the intended use of the crossing by the owner of the land

b) A crossing that is provided under this section shall remain in place until the owner
of the land notifies the operator of the railway that the crossing is no longer required or the
crossing is removed pursuant to an agreement between the owner of the land and the operator
of the railway.

©) For the purposes of this section:

(1) If the right of way existed before the owner of the land acquired the land on
both sides or either side of the right of way, the owner of the land is
responsible for the costs of constructing, maintaining, repairing and removing
the crossing; or

(2) If the owner of the land acquired that land before the right of way that
separated that land came into existence, the operator of the railway is
responsible for the costs of constructing, maintaining, repairing and removing
the crossing.

SEC. 59. Crossing of Private Roads. ~
a) In this section:
(aa) "private road" shall mean-
(i) a road that is not a highway; or
(ii) a highway that is not owned or otherwise under the direction,
control and management of the Authority or any instrumentality of
the government and is designated as a private road by the
Secretary; and
(ab) any reference to an owner of or a person who owns a private road is a
reference to the person who owns or otherwise has the direction, control
and management of a private road,

b) Where a person owns a private road that is located on both sides of a right of
way for track, and if it were not for that right of way, that private road would
be joined together forming a continuous road, the operator of the railway shall,
‘on the request of the owner of the private road, provide a crossing across the
right of way and any track located on the right of way that is appropriate for
the intended use of the crossing by the owner of the private road.

©) A crossing that is provided under this section shall remain in place until the
‘owner of the private road notifies the operator of the railway that the crossing
is no longer required or the crossing is removed pursuant to an agreement
between the owner of the private road and the operator of the railway.

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4) For the purposes of this section, if (i) the right of way existed before the
private road existed on both sides or either side of the right of way, the owner
of the private road is responsible for the costs of constructing, maintaining,
repairing and removing the crossing, or (ii) the private road was in existence
before the right of way that separated that road came into existence, the
operator of the railway is responsible for the costs of constructing,
maintaining, repairing and removing the crossing.

) A person shall not construct a crossing under this section unless the Authority
has granted an approval for the consideration of the crossing.

SEC. 60. Fences of Landowners. —

a) A person owns a land that abuts on a right of way for track, the operator of the
railway shall, on the request of the owner of the land, provide a fence along
the right of way that is appropriate for the intended use of the fence by the
‘owner of the land. For the purpose of this section, if

(i) The right of way existed before the owner of the land acquired the land
that abuts on the right of way, the owner of the land is responsible for
the costs of constructing, maintaining and repairing the fence, or

(ii) ‘The owner of the land acquired the land that abuts on the right of way
before the right of way came into existence, the operator of the railway
is responsible for the costs of constructing the fence and the owner of
the land is responsible for the costs of maintaining and repairing the
fence.

b) Where the owner of the land no longer has need for the fence provided under
this section, the owner of the land, unless otherwise agreed upon between the
owner of the land and the operator of the railway, may on notice to the
operator of the railway remove the fence at the expense of the owner of the
land.

Nothing in this section shall be construed so as to require an operator of an
industrial site referred to in this section to provide a fence along a boundary of
the industrial site

°)

SEC. 61. Abandonment of Services. —

a) In this section, "services" shall mean one or more of the following:
(i) The operation of rolling stock;
(ii) The operation of track; or
(iii) The accepting of goods or commodities for transportation by means of
rolling stock.

b) An operator of a public railway or industrial railway who intends to cease
providing a service shall, prior to the cessation of that service, give notice of
the cessation of service to the Authority in accordance with the regulations.

©) With respect to the cessation of a service that is provided by a public railway,
the operator of the public railway shall, prior to the cessation of that service
and in addition to giving notice under (b), shall notify the public and the

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shippers of goods or commodities on that railway of the cessation of the
service in accordance with the regulations.

ARTICLE X11
PUBLIC RAILWAYS

SEC. 62. Public Railways as Common Carrier. — An operator of a public railway is a
common carrier and shall, as is reasonably within the capabilities of the rolling stock, track,
structural facilities and equipment of the operator, provide to all persons adequate and
suitable facilities

a) For receiving, forwarding and delivering of goods and commodities on and
from railways;

b) For the interchange of goods and commodities between railways;

©) For the retum of rolling stock:

4d) For the injunction of private sidings and the track of industrial railways with
the track of the public railway; and

©) For the receiving, forwarding and delivering of goods and commodities on and
from private sidings and industrial railways referred to in clause (4)

SEC. 63. Interchange of Goods and Commodities. - (a) Where there is an
interchange of goods and commodities between a public railway governed under this Act and
arailway that is not governed under this Act, and the operators of those railways cannot agree
as to the interchange of the goods and commodities, the operator of the public railway
governed under this Act may submit to the Philippine National Railway Authority for the
purpose of determining all matters respecting the interchange

SEC. 64. Tariffs of Rates. — (a) The operator of a public railway shall, subject to the
regulations, establish a tariff of rates for the services that the operator provides to the shippers
and the general public, and post the tariff of rates in a public place in an office operated by
that operator or make that tariff of rates available to the public for inspection at an office
‘operated by that operator.

(b) The operator of a public railway shall, at the request of a shipper, provide to the
shipper the operator's tariff of rates for the shipping of that shipper’s goods and commodities
by that operator.

(©) The operator of a public railway may enter into an agreement with a shipper
respecting tariffs, rates and the provision of services concerning the transportation of goods
and commodities, and the terms of the agreement may be kept confidential.

SEC. 65. Limitation of Liability. — The operator of a public railway shall not limit or
restrict the operator's liability to a shipper for the transportation of goods and commodities
except if permitted by prevailing laws and regulations

SEC. 66. Transactions Regarding Approval or Grants of Operation. —

a) An approval granted to a person in respect of a public railway is not
transferrable from that person to another person.

b) Notwithstanding subsection (a). with the approval of the Philippine National
Railway Authority, an approval granted to a person in the operation of a public
railway may be capitalized, sold, assigned, leased or amalgamated or
otherwise transferred in whole or in part.

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©) Where approvals have been granted in respect of a public railway, and the
Authority is of the opinion that there is a question as to the continued safe
operation of the rolling stock, track or structural facilities arising out of the
change in the operators of the public railway, the Authority may do either of
the things referred to in subsection (d).

d) If subsection (c) applies, the Authority may impose terms, conditions or
restrictions with respect to those approvals that the Authority considers
appropriate to provide for the continued safe operation of the rolling stock,
track and structural facilities, or suspend those approvals until the Authority is
satisfied as to the continued safe operation of the rolling stock, track and
structural facilities.

SEC. 67. Right of Entry. — a) For the purposes of constructing, maintaining or
repairing rolling stock, track or structural facilities of a public railway, the operator of the
public railway and any person employed by or on behalf of that operator may, without taking
title to the land, may enter on any land that is adjacent to or in close proximity to the railway,
and occupy and use that land for so long as it is necessary to carry out the construction,
maintenance or repair.

b) Any person exercising any powers under this section shall do so in a reasonable
manner.

©) Where any person exercises any power under this section, the owner of the land or
other person having possession of the land may apply to the National Railway Authority for
compensation with respect to the exercise of those powers

4) With the approval of the Authority granted pursuant to an application made by the
operator of an industrial railway, that operator may exercise the powers and be subject to the
obligations of an operator of a public railway under this section.

ARTICLE XIV
RAILWAY ENERGY PLANT.

SEC. 68. — In order to ensure a continuous and uninterrupted operation of the railway
systems in the Philippines, the Authority may establish its power plant for any of its rail
systems when on its own judgment it is more economical and advantageous on the part of the
government

SEC. 69. Waste-to-Energy Plant. — In order to facilitate the collection and
transportation of garbage in the metropolitan areas, to ensure the supply of electric power to
the railway systems and to help ensure the economic viability of the railway systems, the
Authority shall endeavor to establish in cooperation with private sector waste-to-energy
plants in strategic areas.

ARTICLE XV
RAILWAY FUNDING AND TRUST FUND.

SEC. 70. Funding of the National Railway Authority. — For purposes of
implementing this Act, the amount of Three Hundred Million (P300,000,000.00) shall be
sourced out from the General Appropriations Act in the next fiscal year after the approval of
this Act.

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SEC. 71. Establishment of the Railway Trust Fund, — A Railway Trust Fund is
hereby established which is a special fund dedicated to finance only railway infrastructure in
the Philippines.

SEC. 72. Sources. - The Railway Trust Fund consists of 3% increase in the real
property tax increase of the six taxes which shall take effect upon the approval of this Act and
5% of the road user's tax.

SEC. 73. Fund Administrator, - The Trust Fund shall be administered by the
Development Bank of the Philippines and can only be spent and withdrawn by 2/3 vote of the
members of the Board of Directors of the Authority for the purpose for which it is created

ARTICLE XVI
‘TRANSFER OF RAILWAY TECHNOLOGY

SEC. 74. Railway Engineering Course. ~ The state universities in the Philippines
particularly the Polytechnic University of the Philippines (PUP) is hereby encouraged to offer
a four (4) year course in Railway Engineering Management to meet the requirements of the
railway industry in the Philippines and abroad

SEC. 75. Railway Training Center. — A National Railway Training Center is hereby
established to equip the labor force with necessary skills and expertise in the development
and implementation of railway projects and programs and in the operation of railway
systems,

ARTICLE XVII
TRAIN DRIVERS

SEC. 76. Train Drivers. - To promote proficiency and to ensure the safety of the
general railway riding public, all train drivers must possess certain educational attainment
and undergo training to attain certain level of skills, and must be physically and mentally fit
owing to the delicate characters of their job

SEC. 77. Train Drivers' License. — The Railway Training Center shall conduct the
training for train drivers for a duration that it may determine and thereafter issue the
necessary Train Drivers’ License (TDL) for those who will pass the training according to its
test and measurement.

ARTICLE XVIII
EXEMPTION FROM REAL PROPERTY TAX

SEC. 78. Exemption from Real Property Tax. — All rail properties in the form of
land, right of way, depot, stations, tracks, office buildings, and terminals are exempted from
the payment of real property tax and those which have already been due to the government
shall be deemed condoned entirely.

SEC. 79. Exemption form Income Tax.— The income of the Authority derived from
the operations of its railway systems is exempted from the payment of income tax.

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SEC. 80. Exemption from the payment of customs, duties and charges. ~ Any
importation of goods and/or equipment for the building of railway systems and for the
maintenance and operation of railway systems is free from payment of customs, duties and
other forms of fees and charges.

ARTICLE XIX
INSURANCE COVERAGE

SEC. 81. Rail Systems Insurance Coverage. — All rail systems shall be covered by
insurance from natural and man-made disasters either by the Government Service Insurance
System (GSIS) or by a self-insurance system in the form of a common trust fund that the
Philippine National Railway Authority may establish for the purpose for all the public
railway operators. The Philippine national Railway Authority may use a portion of the
accumulated trust fund for the development, implementation and operation of railway
projects or systems by 2/3 vote of the members of its board of directors.

SEC. 82. Passenger's Insurance Coverage. — Each and every rail passenger shall be
covered by accident insurance by the rail operators, government or private, in the amount of
One Hundred Thousand Pesos (P100,000.00) in the case of death, not more than Fifty
‘Thousand Pesos (P50,000.00) in cash of an injury exclusive of medical and hospitalization
expense, and Seventy Five Thousand Pesos (P75,000.00) in case of incapacity exclusive of
medical and hospitalization expense.

SEC. 83. Accumutlated Premiums. ~ After five (5) years from the date, the common
trust fund was established and every three (3) years thereafter, a portion of the trust fund may
be used for rail projects and programs by 2/3 vote of the members of the Board of Directors
of the Philippine National Railway Authority.

SEC. 84. Fund Administrator. — The Trust Funds authorized under this Article may
be administered by a group of financial experts when in the judgment of the Board the need
for it arises, otherwise, the Authority shall administer and manage such fund.

ARTICLE XX
APPLICABILITY OF RAILWAY LEGISLATION

SEC. 85. Application of this Act. - a) Where a person owns or is otherwise
responsible for the control, management or operation of both rolling stock and track-
(1) This railway legislation as it relates to both rolling stock and track applies to
that person, and
(2) Any reference in the railway legislation to the operator of a railway is a
reference to that person in that person's capacity as the operator of both rolling
stock and track.

b) Where a person owns or is otherwise responsible for the control, management or operation
of rolling stock but does not own and is not otherwise responsible for the control,
‘management or operation of track —
(1) the railway legislation as it relates to rolling stock applies to that person, and
(2) any reference in the railway legislation to the operator of a railway is a
reference to that person in that person's capacity as the operator of rolling
stock.

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©) Where a person owns or is otherwise responsible for the control, management or operation
of track but does not own and is not otherwise responsible for the control, management or
‘operation of rolling stock -
(1) the railway legislation as it relates to track applies to that person, and
(2) any reference in the railway legislation to the operator of a railway is a
reference to that person's capacity as the operator of track

) Where a person owns or is otherwise responsible for the control, management or operation
of structural facilities —
(1) the railway legislation as it relates to the structural facilities applies to the
person, and
(2) any reference in the railway legislation to the operator of a railway is a
reference to that person's capacity as the operator of the structural facilities

SEC. 86. Non-applicability of Railway Legislation. ~ The railway legislation does
not apply to (a) rolling stock or track that is not full size: (b) structural facilities used in
respect of rolling stock or track referred to in clause (a); (c) the operator of a railway with
respect to the operation of rolling stock or track referred to in clause (a); (d) a railway with
respect to the operation of rolling stock or track referred to in clause (a). For purposes of this
section, (a) a reference to rolling stock or track that is not full size is, subject to the
regulations, a reference

(1) In the case of rolling stock, to rolling stock that operates on track that is less than

standard gauge in width, and

(2) In the case of track, to track that is less than standard gauge in width, and

(b) A reference in clause (a) to standard gauge is a reference to standard gauge as that term is
commonly understood in the Philippines which is based on intemational standards.

ARTICLE XXI
APPLICABILITY OF EXISTING LAWS AND REGULATIONS

SEC. 87. Insofar as they are not inconsistent with this Act, the provisions of the
Corporation Law and Republic Act 6957 otherwise known as "An Act Authorizing the
Financing, Construction, Operations and Maintenance of Infrastructure Projects by the
Private Sector and for Other Purposes" shall be applicable to the operations of the National
Railway Authority.

ARTICLE XXII
MISCELLANEOUS PROVISIONS

SEC. 88. Separability Clause. — \f any of the provisions of this Acts declared invalid,
the provisions thereof not affected by such declaration shall remain in force and effect.

SEC. 89. Repealing clause. ~ The provisions of Republic Act No. 4156, as amended,
Executive Order No. 603, as amended are hereby repealed. All other laws, decrees, orders,
proclamations, rules and regulations or parts thereof, inconsistent with any of the provisions
of this Act are hereby repealed, amended or modified accordingly.

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1 SEC. 90. Effectivity Clause. — This Act shall take effect fifteen (15) days following
2 its publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,

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