Revised Philippine Coast Guard Law

Senate Dilee af the sacrietory TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES P3:04 First Regular Session 25 AUG 19 SENATE RECEIVED BY: Senate Bill No. 1212 Introduced by Senator Erwin T. Tulfo AN ACT STRENGTHENING THE PHILIPPINE COAST GUARD BY INTRODUCING POLICY AND ORGANIZATIONAL REFORMS EXPLANATORY NOTE The Philippines finds itself at a critical juncture in the face of increasing tensions and challenges in the West Philippine Sea. Recent incidents underscore the urgent need to fortify the country's ability to defend its sovereignty, protect its territorial integrity, and secure the welfare of our fisherfolk and coastal communities. The Philippine Coast Guard (PCG), though classified as a civilian uniformed service, plays a frontline role in safeguarding our maritime domain. Its daily presence in contested waters, enforcement of maritime laws, and humanitarian and disaster response functions make the PCG indispensable not only to maritime governance but also to national security and sovereignty. This bill seeks to revise and strengthen the Philippine Coast Guard Law to ensure that the PCG has the institutional, operational, and financial capacity to fulfill its mandate. Specifically, it proposes the enhancement of the PCG's organizational structure and the upgrading of benefits and retirement systems for PCG personnel.

While the PCG remains a civilian institution under the Department of Transportation (DOTr), its personnel face risks and responsibilities comparable to those of our armed forces. Aligning compensation systems will prevent salary distortion, promote morale, and recognize the sacrifices of PCG personnel who stand in defense of our nation's waters. This bill affirms that our maritime guardians must be adequately supported, so that they, in turn, can effectively protect the Philippines in this evolving maritime environment. In view of the foregoing, the immediate passage of this bill is earnestly sought. ERWIN T. TULFO

Senate TWENTIETH CONGRESS OF THE ) Office of the secretary REPUBLIC OF THE PHILIPPINES AUG 19 P3:04 First Regular Session RECEIVED BY: SENATE Senate Bill No. 1217 Introduced by Senator Erwin T. Tulfo AN ACT STRENGTHENING THE PHILIPPINE COAST GUARD BY INTRODUCING POLICY AND ORGANIZATIONAL REFORMS Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled: Title I PRELIMINARY PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the

"Revised Philippine Coast Guard Law."

SEC. 2. Philippine Coast Guard. - The Philippine Coast Guard

(PCG), established under Republic Act (R.A.) No. 9993, otherwise known as the "Philippine Coast Guard Law of 2009", as an armed and uniformed service attached to the Department of Transportation 11 (DOTr) shall continue as such upon the effectivity of this Act: Provided, That in times of war, as declared by Congress, the PCG or parts thereof, shall be attached to the Department of National Defense (DND).

Title HI ORGANIZATION

SEC. 3. Organization. - The PCG shall be headed by a

Commandant with the rank of Admiral and shall be assisted by the Deputy Commandant for Operations and Deputy Commandant for 7 Administration, both with the rank of Vice Admiral. It shall be organized into three (3) core functional commands, namely: Maritime Safety Services Command, Marine Environmental Protection Command, and Maritime Security Law Enforcement Command. To enhance the core functions of the PCG, it shall be reinforced by support commands and service units categorized as follows: a) The administrative support commands shall consist of the Education and Training, Internal Affairs Service, Financial Management, Human Resource Management Service, and Logistics; b) The operational support commands shall consist of the Fleet, Weapons, Communications, Electronics and Information System Service, Special Operations Force, Aviation Force, Civil Relations Service Command, Canine Force, Intelligence Force, and other operational commands as may thereafter be created as needed; c) The technical services shall consist of the Legal Service, Medical Service, Ecumenical Service, Dental Service, Veterinary Service, Medical Administrative Corps, Nurse Corps, and other technical services that may or hereinafter be created as needed; d) The operating commands shall consist of the sixteen (16) districts located nationwide covering specific areas of responsibilities composed of stations that shall have field offices called sub-stations down to detachments or posts. These coast guard districts are: National Capital Region-Central Luzon (CGD NCR-CL), Central Visayas (CGD CV), Southwestern Mindanao (CGD SWM), Southeastern Mindanao (CGD SEM), Palawan (CGD PAL), Western Visayas (CGD WV), Southern Visayas (CGD SV), Southern Tagalog (CGD STL), Northern

1 Mindanao (CGD NM), Bicol (CGD BCL), Northwestern Luzon (CGD • NWL), Eastern Visayas (CGD EV), Northeastern Luzon (CGD NEL), Southern Mindanao (CGD SM), Northeastern Mindanao (CGD NEM) and Coast Guard districts in Bangsamoro Administrative Region in Muslim Mindanao (CGDs BARMM): Provided, That the PCG may create other new districts subject to existing laws; and e) The Special Services consist of the Legislative Liaison Affairs, 9 Internal Audit, and Center for Strategic Studies. In addition to the aforementioned basic structure of the PCG, the 12 PCG Commandant is authorized to reorganize, modify, or create districts, commands, services, or units to enhance operational efficiency and command structure. Such changes shall be subject to the recommendation of the Secretary of Transportation and the approval of the Department of Budget and Management (DBM), in accordance with applicable laws, rules and regulations: Provided, That the minimum manning level of the PCG shall be sufficient to support its mandate, which shall be filled in accordance with the enlistment schedule approved by the DBM: Provided, further, That the functional commands, administrative support units, operational support units, operating units, technical services and special services shall be authorized and designated to perform all duties and functions of the PCG within their individual areas of responsibility, including finance and procurement. Title III POWERS AND FUNCTIONS

SEC. 4. Powers and Functions of the PCG. - The PCG shall have

the following powers and functions: a) Enforce regulations in accordance with all relevant maritime international conventions, treaties or instruments and national laws for the promotion of safety of life and property at sea within the maritime jurisdiction of the Philippines and conduct port state control implementation;

b) Conduct inspections on all merchant ships and vessels, including pre-departure inspections, to ensure and enforce compliance with prescribed safety standards, rules and regulations; c) Detain, stop, or prevent the departure of ships or vessels which do not comply with safety standards, rules and regulations; d) Evaluate emergency readiness of merchant marine vessels to ensure preparedness in cases of maritime incidents; e) Issue and enforce rules and regulations governing maritime- related activities for the protection of life and property at sea, subject to the approval of the Secretary of Transportation; f) Determine, fix, or prescribe reasonable charges, rates, and penalties, as may be necessary, to implement its provisions, as well as the provisions of laws, issuances, decrees, and orders related to the implementation of PCG functions, subject to the approval of the Secretary of Transportation; g) Develop, operate, and maintain aids to navigation, vessel traffic systems, maritime communications, and search and rescue facilities within the maritime jurisdiction of the Philippines; h) Remove, destroy, or tow navigational hazards, whether sunken or floating, at or close to sea lanes which may cause hazards to the marine environment; i) Issue permits for the salvage of vessels and to supervise all marine salvage operations and wreck removal, and to auction the abandoned vessels or wrecks to defray the expenses of such removal, as well as prescribe and enforce rules and regulations governing the same; j) Conduct maritime search and rescue operations and render aid to persons and vessels in distress within the maritime jurisdiction of the

1 international conventions. In the performance of this function, the PCG 2 may enlist the services of other government agencies and the merchant marine fleet; k) Investigate maritime accidents including those resulting in death, casualties, or damage to properties; 1) Enforce and maintain, in coordination with other relevant government agencies, maritime security, and prevent or suppress terrorism at sea; m) Assist in the enforcement of laws within the maritime 13 jurisdiction of the Philippines including but not limited to fisheries, immigration, tariff and customs, forestry, firearms and explosives, human trafficking, dangerous drugs and controlled chemicals, transnational crimes, and other applicable laws; n) Board and inspect all types of merchant ships and watercrafts in the performance of these functions; o) Administer and enforce environmental protection measures to safeguard the marine environment and resources against offshore sources of pollution within the maritime jurisdiction of the Philippines; p) Develop oil spill response, containment, and recovery capabilities against ship-based pollution; q) Grant, within the capabilities and consistent with its mandate, requests for assistance of other government agencies in the performance of their functions; r) Organize, train, and supervise the PCG Auxiliary (PCGA) to assist the PCG in carrying out its mandated functions; s) Recommend to the President of the Philippines appropriate assistance and support measures which the Armed Forces of the 37 Philippines (AFP) may extend to enhance PCG capabilities during

emergencies, or other maritime contingencies requiring augmented support; and t) Perform such other functions that may be necessary in the attainment of the objectives of this Act. Title IV THE PCG COMMANDANT

SEC. 5. The PCG Commandant. - The PCG Commandant shall

be appointed by the President of the Philippines from among the Flag Officers in the Coast Guard service. He or she shall hold a command- at-sea badge and must have served as District Commander or Functional Service Commander or other major commanders carrying the rank of Vice Admiral. The Commandant shall have a maximum term of three (3) years which shall commence on the date the appointment is signed, unless sooner terminated by the President. The PCG Commandant shall be compulsorily retired upon completion of the maximum term or upon relief by the President.

SEC. 6. Powers and Functions of the Commandant. - The

Commandant shall exercise the following powers and functions: a) Elaborate and execute the national maritime laws relating to the functions of the PCG; b) Direct and control tactical and strategic movements, deployment, placement, or utilization of PCG units, personnel, equipment, facilities and other resources: Provided, That this power may be delegated to subordinate officials with respect to their respective units, subject to the guidelines issued by the Commandant in accordance with law; c) Organize or reorganize the various staff, services, installation, and other units of the PCG, and prescribe their powers and functions, in accordance with law;

d) Issue policies and instructions regarding personnel, funds, properties, records, correspondence, and such other matters as may be necessary to effectively carry out the functions, powers and duties of the PCG, in accordance with existing laws, rules and regulations; e) Approve recommendations of promotions or assignment boards and ensure observance of merit and fitness in the process; t) Exercise disciplinary authority over all uniformed and non- uniformed personnel of the PCG; and g) Perform any task or directive issued by the President of the Philippines: Provided, That this power may be delegated to subordinate officials with respect to their respective units, subject to the guidelines issued by the Commandant in accordance with law; Title V ADMINISTRATION AND PERSONNEL

SEC. 7. Personnel. - The PCG shall consist of the following

categories of personnel: a) Officer refers to a uniformed member of the PCG who is commissioned as officer by the President of the Philippines or the Secretary of Transportation, as the case may be, and belongs to the officers' corps; b) Non-officer refers to a general term for uniformed members of the PCG with ranks below commissioned officers and performing jobs specific to their occupational specialty. There are three classifications of non-officers, namely, strikers for those in grades E-1 to E-3, junior non-commissioned officers for those in grades E-4 to E6, and senior non-commissioned officers for ranks with equivalent grades of E-7 to E-10; c) Non-uniformed personnel refer to permanent, temporary, contractual, coterminous, and casual civilian employees of the PCG

whose appointments are governed by the civil service laws, rules, and regulations; d) Probationary ensign refers to a person who is called to active duty but awaiting commissionship into the PCG or awaiting training; e) Draftee refers to a person who has completed basic training and is awaiting enlistment into the PCG active service; t) Cadet refers to a person who is enrolled in service academies under the sponsorship of the PCG; g) Candidate refers to a person who is undergoing training for commissionship; and h) Trainee refers to a person who is undergoing training to qualify as member of the non-officers' corps of the PCG. Provided, That the ranks and grades of all uniformed personnel in the PCG, whether officers or non-officers, shall be the same and equal as that used and observed in the AFP and the Philippine National Police (PNP).

SEC. 8. Ranks and Grades of PCG Officers. - The ranks and

grades of PCG Officers shall be as follows: RANK ACRONYM PAY GRADE Admiral ADM 0-10 Vice Admiral VADM 0-9 Rear Admiral RADM 0-8 Commodore COMMO 0-7 Captain CAPT 0-6 Commander CDR 0-5 Lieutenant Commander LCDR 0-4 Lieutenant Senior Grade LTSG 0-3 LTJG Lieutenant Junior Grade 0-2 Ensign ENS 0-1

SEC. 9. Technical Officers. - The following professionals may

2 join the PCG as technical officers: a) Lawyers; b) Doctors; c) Priests, Pastors, Imam, and other certified clerics; d) Dentists; e) Veterinarians; and t) Nurses Provided, That in addition to possessing the appropriate degree, the applicant must have duly qualified in and passed the required licensure examination, where applicable, in order to be eligible for 13 entry into the PCG: Provided, however, That other licensed professions 14 not listed above may still be recruited, subject to verification of the PCG of its need thereof.

SEC. 10. Officer Rank Distribution. - The officer rank

distribution of the PCG shall be as follows: two percent (2%) in the Flag Officer rank; six percent (6%) in the rank of Captain; twelve percent (12%) in the rank of Commander; eighteen percent (18%) in the rank of Lieutenant Commander; twenty percent (20%) in the rank of Lieutenant Senior Grade; and forty-two percent (42%) in the ranks of Lieutenant Junior Grade and Ensign: Provided, That such distribution shall observe the officer to non-officer ratio, which is one (1) officer for every seven (7) non-officers: Provided, further, That if the actual number in a rank is less than the number prescribed in a lower rank, the difference may be applied as an increase to the number prescribed in the lower rank.

SEC. 11. Distribution of Flag Officers. - Other than the

Commandant who occupies the rank of Admiral, the total number of flag ranks shall not exceed two percent (2%) of the total population of officers distributed, observing the pyramidal structure as hereunder prescribed: Vice Admiral 0.15% Rear Admiral 0.35%

Commodore 1.50% Total 2.00% Provided, That if the actual number in a rank, except in the case of Coast Guard Admiral and Vice Admiral, is less than the number herein prescribed, the difference may be applied as an increase to the > number prescribed in the lower rank: Provided, further, That no officer shall be promoted to the rank of Commodore or higher unless there is an existing vacancy, and the officer is occupying a position in the table of organization that requires the rank which is being considered for promotion.

SEC. 12. Maximum Tenure in Rank. - The maximum tenure of

officers in the ranks of Captain and Flag Officer in the PCG is hereby prescribed as follows: RANK MAXIMUM TENURE IN RANK Admiral Three (3) years Vice Admiral Three (3) years Rear Admiral Three (3) years Commodore Five (5) years Captain Seven (7) years Unless earlier separated, retired, or promoted to the next higher rank or occupying a position calling for the higher rank in the PCG Table of Organization, Captains and Flag Officers shall be compulsory retired upon the attainment of the maximum tenure in rank herein prescribed, or upon reaching the mandatory age of retirement whichever comes earlier: Provided, That Captains or Flag Officers who have not reached the age of retirement shall be retired due to attrition if they have at least twenty (20) years in service, otherwise it shall be separation from service.

SEC 13. Ranks and Grades of Non-officers. - The ranks and pay

grades of PCG non-officers shall be as follows:

RANK ACRONYM PAY GRADE First Master Chief Petty Officer FMCPO E-10 MCPO E-9 Master Chief Petty Officer 4 Senior Chief Petty Officer SCPO E-8 Chief Petty Officer CPO E-7 6 Petty Officer First Class PO1 E-6 7 Petty Officer Second Class PO2 E-5 Petty Officer Third Class PO3 E-4 Seaman/Seawoman First Class SN1/SW1 E-3 Seaman/Seawoman Second Class SN1/SW2 E-2 11 Apprentice Seaman/Seawoman ASN/ASW E-1

SEC. 14. Maximum Tenure in Rank for Non-officers. - The

maximum tenure of senior non-officers in the ranks of Chief Petty Officer to First Master Chief Petty Officer in the PCG is as follows: RANK MAXIMUM TENURE IN RANK First Master Chief Petty Officer Three (3) years Master Chief Petty Officer Five (5) years Senior Chief Petty Officer Eight (8) years Chief Petty Officer Ten (10) years Any non-officer holding lower ranks than the above who stays in a rank for ten (10) years without being promoted to the next higher rank shall be evaluated by the Re-enlistment Fitness Board who shall verify suitability to continue in service and submit a recommendation for the approval of the Commandant: Provided, That the original enlistment term in the PCG shall be three (3) years and subsequent re-enlistment shall be for the term of six (6) years, with the application for re- enlistment to be reviewed by the Re-enlistment Fitness Board for recommendation to the Commandant for approval: Provided, further, That the uniform allowance shall be payable every three (3) years after complying with the physical fitness test.

SEC. 15. Non-uniformed Personnel. - There shall be non-

uniformed personnel positions in the PCG. The head of the non- uniformed personnel shall occupy a rank of Director IlI and shall be

appointed by the President of the Philippines upon recommendation of the Commandant. The Commandant shall determine the additional plantilla positions required for the purpose, subject to the evaluation and approval of the DBM in accordance with the civil service and other pertinent laws, rules, and regulations.

SEC. 16. Appointments. - The appointment of the PCG

Commandant and Flag Officers shall be approved by the President of the Philippines upon the recommendation of the Secretary of Transportation. Appointments of all PCG non-officers shall be made by the PCG Commandant. Appointments of PCG officers, which shall 12 be in the initial rank of Coast Guard Ensign shall be through a commissionship into service by the Secretary of Transportation upon the recommendation of the Commandant. The initial entry ranks for technical officers like lawyers, medical doctors, and ecumenical clerics shall be Lieutenant Senior Grade; dentists and veterinarians shall be Lieutenant Junior Grade; while nurses shall be commissioned to the rank of Ensign. Appointment of other technical professions that may be required later shall be based on the academic attainment or ranking in licensure examination results issued by competent authority. Appointments as well as the promotion of all non-uniformed personnel shall be in accordance with Civil Service Commission (CSC) laws, rules and regulations.

SEC. 17. Basic Qualification for Uniformed Personnel. - To

qualify as officer or non-officer of the PCG, the applicant, at the time of application: a) Must be a natural-born citizen of the Philippines; b) Must be a person of good moral conduct; c) Must have passed the psychiatric, psychological, drug, and physical tests to be administered by the PCG Medical Service or by any PCG-accredited government hospital for the purpose of determining physical and mental health;

d) Must possess a formal baccalaureate degree, with appropriate license when applicable or professional civil service eligibility for appointment as officer, and must have finished at least seventy-two (72) non-repetitive units of college education, or is a senior high school graduate with six (6) months Technical Education and Skills Development Authority skills course related to the functions of PCG for appointment as non-officers upon effectivity of this Act; and e) Must not have been dishonorably discharged from military employment or dismissed for cause from any non-uniformed personnel position in the government.

SEC. 18. Promotions of Officers and Non-officers. - The

promotion of PCG officers and non-officers shall be based on merit and fitness in accordance with the following procedures: a) Officers shall only be promoted after undergoing deliberation before the promotion boards: Provided, That the promotion boards shall submit the results of their deliberation to the Commandant for approval and corresponding endorsement to the Secretary of Transportation for transmittal to the President of the Philippines for approval; and b) There shall also be appropriate promotion boards for non- officers whose recommendation shall be submitted to the Commandant for approval. Provided, further, That at the time of promotion, the officer or non-officers concerned shall possess all the qualifications and none of the disqualifications provided under pertinent laws, rules and regulations, specifically on the completion of required career course, training, examination and minimum time-in-grade as applicable for specific ranks. Provided, finally, That except for the position of Commandant, no other officer shall be promoted, assigned or designated to the rank

of Commodore or higher if he has less than one (1) year of active service remaining prior to compulsory retirement.

SEC. 19. Gender Sensitivity Program. - Gender concerns shall

be addressed in all planning activities, setting of priorities, allocating of resources, and identifying actions and activities of the PCG. It shall also incorporate a gender sensitive perspective in the implementation of such plans and programs. Gender sensitivity shall also be mainstreamed in all its internal policies, strategies, budget, projects, structures and mechanisms, including hiring, promotions, assignment, training opportunities, pay and benefits. A gender perspective shall likewise be integrated in all its training programs, especially for maritime search and rescue.

SEC. 20. PCG Insignia, Decorations and Awards. - The PCG

shall have its own insignia and badges to denote rank, specialty, and assignment including uniforms, decorations, and awards, all of which shall be submitted to the National Historical Commission of the Philippines for registration in the flags and heraldic list: Provided, That there shall be an established awards system which shall be administered by the PCG under such rules and regulations as may be promulgated with the approval of the Secretary of Transportation.

SEC. 21. Legal Assistance. - The Secretary of Transportation or

the Commandant of the PCG may authorize lawyers of their respective agencies to provide legal assistance to any member of the PCG charged with an offense or crime resulting from the performance or on occasion of official duty. The government lawyers so authorized shall have the power to administer oaths.

SEC. 22. Power to Administer Oath. - Officers of the PCG in the

active service with the grade of O-s or when designated with appropriate orders as administrative officer of a unit, shall have the power to administer oaths on matters which are connected with the performance of their official duties. Senior non-commissioned officers who are designated through appropriate orders as Chief Master-At-

1 Arms (CMAA) or unit master chief are also empowered to administer 2 oaths.

SEC. 23. Maritime and Coast Guard Attaché. - Subject to

existing laws, rules and regulations, the PCG may designate a maritime and coast guard attaché in the International Maritime Organization • (IMO), other international institutions, or as member of diplomatic 8 missions or embassies upon the recommendation of the Secretary of 9 Transportation. The assignment or deployment of the maritime or coast guard 12 attaché shall be with the prior approval of the Secretary of Foreign Affairs. Title VI PAYS, ALLOWANCES, AND BENEFITS

SEC. 24. Salaries and Other Benefits. - The uniformed personnel

of the PCG shall receive the same base pay, hazard pay, and other benefits and allowances as are now or hereafter may be authorized for corresponding salary grades and ranks in the AFP. The salaries and allowances of the non-uniformed personnel of the PCG shall be in accordance with the existing Salary Standardization Law and CSC laws, rules, and regulations.

SEC. 25. Longevity Pay and Allowances. - The uniformed

personnel of the PCG shall be entitled to a longevity pay of ten percent (10%) of their basic monthly salaries for every five (5) years of continuous active service, which shall be reckoned from the date of actual service in the PCG: Provided, That the totality of such longevity pay shall not exceed fifty percent (50%) of the basic pay. They shall also continue to enjoy all other applicable allowances as provided by existing laws: Provided, further, That the PCG shall, subject to approval of the President of the Philippines, issue a specific policy pertaining to collateral allowances for specific duties actually performed. All collateral allowances shall be reflected in the pay slip of qualified personnel.

SEC. 26. Uniformed Personnel Missing in Action. - The

2 survivors of any officer or non-officer who, while in the performance 3 of duty, is officially confirmed missing in action, kidnapped or 4 captured by lawless elements shall be entitled to receive the same pay 5 and allowances to which such officer or non-officer is entitled from the 6 time of the latter's disappearance: Provided, That the compulsory 7 retirement of an absentee, in applicable cases, shall be processed to 8 allow the survivors to enjoy the retirement benefits: Provided, further, 9 That should the Commandant, upon the recommendation of the proper 10 authority or immediate supervisor, subsequently rule that the officer or 11 non-officer concerned has been absent from duty without authority, 12 such member or the latter's survivors shall reimburse the PCG all such amount and allowances that have been received in accordance with this section and other pertinent sections of this Act.

SEC. 27. Healthcare Service. - Subject to availability of funds,

the PCG may provide its members with healthcare services through a health maintenance organization (HMO). Title VII ACTIVE SERVICE AND SEPARATION

SEC. 28. Active Service. - For purposes of this Act, active service

of the PCG personnel shall refer to services rendered as an officer, non- officer, cadet, trainee, or draftee in the PCG and services rendered as a non-uniformed personnel in the Philippine Government prior to the date of separation or retirement from the PCG: Provided, That, for purposes of retirement, the personnel shall have rendered at least ten (10) years of active service as officer or non-officer in the PCG: Provided, further, That no period of such non-uniformed personnel's government service longer than the active coast guard service shall be credited for purposes of retirement. Service rendered as a cadet in any service academy in the Philippines or abroad under the sponsorship of the PCG such as the Philippine Merchant Marine Academy (PMMA), probationary officer, draftee, or trainee shall be included in computing the years in active

1 service for retirement purposes if such personnel joins the service right 2 after graduation.

SEC. 29. Retirement. - Upon attaining fifty-seven (57) years of

5 age or accumulation of thirty (30) years of continuous satisfactory active service, whichever comes later, a PCG uniformed personnel 7 shall be compulsorily retired: Provided, That technical officers may 8 extend their tenure of service up to sixty (60) years or until having accumulated twenty (20) years of satisfactory active service, whichever comes later: Provided, further, That the Commandant shall be compulsorily retired upon the completion of the tour of duty as provided under Section 5 of this Act or upon relief by the President. Any officer or non-officer may choose to retire on their own option upon accumulating at least twenty (20) years in active service. For purposes of this Act, an officer or non-officer who dies after having accumulated at least twenty (20) years of satisfactory active service shall be considered as retired. The retirement of non-uniformed personnel of the PCG shall be governed by the Government Service Insurance System (GSIS) law, rules and regulations.

SEC. 30. Separation. - Separation from the Coast Guard service

may be done through compulsory retirement, optional retirement upon reaching twenty (20) years in service, disability discharge, expiration of enlistment term, voluntary resignation, attrition, dismissal for cause, or death. The separation of non-uniformed personnel of the PCG shall be governed by the Civil Service law, rules and regulations.

SEC. 31. Attrition. - There shall be established a system of

attrition within the uniformed members of the PCG within one (1) year from the effectivity of this Act to be submitted by the PCG to the President of the Philippines for approval.

SEC. 32. Retirement Benefits. - An officer or uniformed

personnel who is retired under Section 29 of this Act, or the retiree's qualified survivors, are entitled to receive, and may choose from, any of the following applicable benefits: a) Gratuity Pay. - A lump sum payment of gratuity pay equivalent 7 to one (1) month of base and longevity pay computed based on one (1) 8 grade higher than the permanent salary grade last held for every year of service; or b) Retirement Pay - A monthly retirement pay equivalent to fifty 12 percent (50%) of monthly base and longevity pay computed based on one grade higher than the permanent salary grade last held by the personnel in case of twenty (20) years of active service, increasing by two and one-half percent (2½%) for every year of service rendered beyond twenty (20) years up to a maximum of ninety percent (90%) for thirty-six (36) years of active service and over. Provided, That non-officers who attain the rank of Chief Petty Officer, Senior Chief Petty Officer and of Master Chief Petty Officer shall, upon retirement, be entitled to the retirement pay and benefits of an Ensign: Provided, further, That a Master Chief Petty Officer shall receive a gratuity equivalent to that of an Ensign plus one-half (1/2) of the difference between the gratuity of an Ensign and a Chief Petty Officer; a Senior Chief Petty Officer shall receive a gratuity equivalent to that of an Ensign plus one-half (1/2) of the difference between the gratuity of a Master Chief Petty Officer and a Chief Petty Officer; while a First Master Chief Petty Officer shall be retired with the rank of Ensign but with the retirement pay and benefits of a Lieutenant Junior Grade (O-2), as provided for in existing laws: Provided, furthermore, That, upon retirement, officers and non-officers are entitled to receive monthly retirement pay upon retirement, or may opt to receive a lump sum equal to thirty-six (36) months of the monthly retirement pay and three (3) years thereafter shall receive an annual retirement pay payable in equal monthly installment as they accrue.

The retirement pay of officers and non-officers who are killed in action or wounded in action resulting in total permanent disability shall be computed at the rate of ninety percent (90%) of the monthly base 4 and longevity pay based on one grade higher than the permanent salary 5 grade last held by the personnel regardless of years in active service. The retirement pay of all PCG uniformed personnel retirees shall be subject to adjustment on the prevailing scale of base pay of uniformed personnel in the active service. The retirement benefits of non-uniformed personnel shall be governed by applicable Civil Service laws and regulations and the GSIS Law.

SEC. 33. Separation Pay. - Officers and non-officers separated

from the PCG without having accumulated at least twenty (20) years 17 of satisfactory active service, or their qualified survivors, shall receive a separation pay equivalent to one-month base plus longevity pay based on the permanent salary grade the officer and non-officer holds at the time of separation for every year of active service: Provided, That in the case of an officer in the grade of Captain or higher who incurs physical disability in the line of duty, the basis of the separation pay shall be one grade higher than the salary grade held by such officer at the time of separation: Provided, further, That cadets, candidates, trainees, or draftees who voluntarily resign from service shall not be entitled to any separation pay. The separation benefits of non-uniformed personnel shall be governed by applicable Civil Service laws and regulations and the GSIS Law.

SEC. 34. Benefits for Death and Total Permanent Disability in

the Line of Duty or During Training. - Qualified survivors of officers and non-officers, including cadets, candidates, trainees and draftees who died in the line of duty without having accumulated at least twenty (20) years of satisfactory active service are entitled to a monthly life annuity, equivalent to fifty percent (50%) of the base and longevity pay

computed based on one grade higher than the permanent salary grade last held by the deceased officer and non-officer at the time of death: Provided, That survivors of cadets, candidates, trainees, and draftees who died during training through their fault or negligence shall not be entitled to this benefit. Officers or non-officers, including cadets, candidates, trainees, and draftees who suffer total permanent physical disability in the line of duty or during training without having accumulated at least twenty 10 (20) years of satisfactory active service shall be entitled to a monthly life annuity, equivalent to fifty percent (50%) of the base and longevity 12 pay computed based on one grade higher than the permanent salary grade last held by the officer or non-officer when the disability occurred: Provided, That the extent of the disability or sickness which renders such member unfit or unable to further perform the duties of the position held shall be certified by the appropriate government hospital like the Philippine General Hospital: Provided, further, That cadets, candidates, trainees and draftees who suffer total permanent physical disability during training through their fault or negligence shall not be entitled to this benefit. The death and disability benefits of non-uniformed personnel shall be governed by applicable Civil Service laws and regulations and the GSIS Law.

SEC. 35. Survivors. - The family of deceased officers or non-

officers who are alive may claim benefits after such uniformed personnel dies in line of duty or when the pensioner dies. The following criteria shall apply: a) Surviving spouse if married to the deceased prior to the latter's retirement or separation and not legally separated by judicial decree from the deceased issued on grounds not attributable to said spouse: Provided, That the spouse's entitlement of benefits shall terminate when the spouse dies, remarries, cohabits, or engages in a common-law relationship;

b) Surviving children of officers or non-officers born of marriage 2 contracted prior to retirement or separation from the service, surviving 3 children adopted legally prior to retirement or separation, illegitimate 4 children born while the deceased parent was still on active service: 5 Provided, That entitlement to benefits shall terminate when such 6 children attain twenty-one (21) years of age or upon marriage: 7 Provided, further, That those who have reached the age of twenty-one 8 (21) years but are incapacitated and incapable of self-support due to a 9 mental or physical defect acquired prior to age of majority shall remain 10 entitled to the benefits; and c) In default of those mentioned in paragraph (a) and (b), the surviving parent or parents. As regards the question of filiation involving survivor-claimants, the same shall be submitted first by the claimants to a competent court for determination before benefits can be given.

SEC. 36. Survivorship Benefits. - The qualified survivors are

entitled to a monthly annuity equivalent to seventy-five percent (75%) of the officer or non-officer's retirement or separation benefits, to be divided among them in equal shares and with the right of accretion. Survivorship benefits for non-uniformed personnel shall be governed by the GSIS Law.

SEC. 37. Disability Pension. - In addition to the other benefits

under this Act, an officer or non-officer who is retired or separated by reason of disability, which is the proximate result of wounds or injuries sustained or sickness or disease acquired in the line of duty shall receive a monthly disability pension as follows: a) If and while the disability is rated twenty-five percent (25%) - Five thousand pesos (P5,000.00); b) If and while the disability is rated fifty percent (50%) - Ten thousand pesos (P10,000.00);

c) If and while the disability is rated seventy-five percent (75%) - Fifteen thousand pesos (P15,000.00); and d) If and while the disability is rated one hundred percent (100%) - Twenty thousand pesos (P20,000.00). The officer or non-officer receiving the benefits under this 7 Section may be required to undergo periodic physical and medical 8 examination to determine the extent of disability for purposes of adjusting the disability pension.

SEC. 38. Old-Age Pension. - A retired PCG uniformed personnel

12 who is at least sixty-five (65) years of age shall be entitled to old-age pension amounting to Five thousand pesos (P5,000.00) monthly and an additional amount of One thousand seven hundred pesos (P1,700.00) monthly upon reaching the age of seventy (70): Provided, That only retired PCG uniformed personnel who shall have been honorably discharged or retired after at least twenty (20) years total PCG active service or sooner separated while in the active service in the PCG due to disability arising or incurred in actual operations or performance of duties are entitled to receive this monthly benefit.

SEC. 39. Application of Related Laws on Retirement and

Separation of Uniformed Personnel. - The retirement system under Presidential Decree (P.D.) No. 1638, as amended, and the provisions of RA 8220, RA 9365, and other similar applicable laws, insofar as not inconsistent with applicable provisions of this Act, shall be given suppletory effect.

SEC. 40. Incentives and Awards. - There shall be established an

incentives and awards system which shall be the same and equal as that used and observed in the AFP and the PNP, including the Medalya ng Kagitingan (Medal of Valor) to be administered by a board under such rules, regulations and standards as may be promulgated by the PCG: Provided, That equivalent awards shall be given by the PCG for every award duly given by respectable civic organizations in a nationwide selection for outstanding achievement or performance of any member: Provided, further, That in the case of non-uniformed personnel, the

1 system of incentives and awards shall be approved and in accordance with CSC laws, rules and regulations. Title VIII DISCIPLINARY SYSTEM

SEC. 41. Disciplinary System. - The PCG shall adopt the PCG

8 Code of Conduct which shall apply to all its uniformed personnel while 9 non-uniformed personnel shall be governed by the disciplinary rules of the Civil Service. The Commandant shall be assisted by the Coast 11 Guard Internal Affairs in enforcing discipline and order within its 12 ranks. Unit commanders shall exercise disciplinary powers over personnel under their command, depending on gravity of the offense. Within six (6) months from the effectivity of this Act, the PCG shall issue the necessary rules and procedures to implement the PCG Code of Conduct, taking into consideration the provisions of Commonwealth Act No. 408, as amended by R.A. 516, R.A. 242, P.D. 1968, and P.D. 1166: Provided, That for non-uniformed personnel, the PCG shall issue rules and procedures implementing Book VII of Executive Order No. 292 and applicable CSC laws, rules, and issuances: Provided, further, That in times of war, or whenever the PCG or any of its offices is attached to the DND, the military justice system of the AFP shall apply.

SEC. 42. Disciplinary Authority. - The Commandant shall

exercise disciplinary authority at any time over all personnel of the PCG. The authority to discipline shall also be exercised by unit commanders and Commanding Officers, including Station Commanders, Sub-Station Commanders, and the head of Morning Report Carrying Units.

SEC. 43. Jurisdiction. - A complaint or a charge filed against a

PCG member shall be heard and decided exclusively by the disciplining authority that has acquired original jurisdiction over the case, notwithstanding the existence of concurrent jurisdiction as regards the offense.

SEC. 44. Dismissal of PCG Personnel. - The Commandant, after

due notice and summary hearing, may immediately remove or dismiss any respondent PCG personnel, and major unit commanders may recommend such dismissal in any of the following cases: a) When a PCG personnel is found positive for prohibited drugs as confirmed by a subsequent confirmation test; b) When the charge involves a serious offense and the evidence of guilt is strong; c) When the respondent is a recidivist or has been repeatedly charged, and there are reasonable grounds to believe that the respondent is guilty of the charges; and d) When the respondent is found guilty of a serious offense constituting conduct unbecoming of a PCG personnel. An officer or non-officer who is continuously absent without approved leave for at least thirty (30) calendar days shall be considered on absence without official leave and shall be presumed voluntarily resigned: Provided, That such officer or non-officer shall be informed, by registered mail, at the address appearing on such officer's or non- officer's 201 file not later than five (5) calendar days from the effectivity thereof. The dismissal of PCG non-uniformed personnel shall be governed by Civil Service laws, rules and regulations.

SEC. 45. Coast Guard Inspector General and Internal Affairs

Service (CGIG-IAS). - To maintain accountability in government service through discipline and efficiency, there shall be an Internal Affairs Service in the PCG. The CGIG-IAS shall foster and promote accountability in government service within the PCG and follow the basic principles of integrity, objectivity, independence, confidentiality, professionalism, competence, courage, trust, honesty, fairness, forthrightness, public accountability, and respect for others and themselves. It shall have the power to investigate and inquire into all activities of the PCG units and personnel, review processes,

1 procedures, and operations to determine if such were conducted 2 effectively and efficiently. Title IX MISCELLANEOUS PROVISIONS

SEC. 46. Organization of a PCGA. - The PCG shall continue to

8 maintain, supervise, develop, and train the PCGA as a non-uniformed 9 personnel volunteer organization under the direct control and 10 supervision of the PCG Commandant. The PCGA shall assist the PCG 11 in the promotion of safety of life and property at sea, the preservation 12 of the marine environment and its resources, the conduct of maritime search and rescue, the maintenance of aids to navigation, and such other activities that enhance maritime community relations which include civic action, participation under the National Service Training Program, youth development, recreational safety, and other related activities.

SEC. 47. Coast Guard Reserve Force. — In accordance with

existing laws, rules, and regulations, the PCG may establish a reserve force to augment its regular forces in the event of a national emergency or disaster. The PCG reserve force shall undergo regular training and shall be organized, trained, equipped, and administered by a PCG Reserve Command under the direction of the Commandant. Members of the reserve force may be called to active duty in the exigency of the service. The PCG shall adopt pertinent policies and guidelines for the purpose, subject to the approval of the President upon the recommendation of the Secretary of Transportation.

SEC. 48. Lateral Entry. - Active members of the AFP, PNP,

Bureau of Fire Protection (BFP), Bureau of Jail Management and Penology (BJMP), and Bureau of Corrections (BuCor) may join the PCG through lateral entry. The rank for such entry must not be higher than Lieutenant Commander for officers and Petty Officer Second Class for non-officers.

Nevertheless, no entrant shall be accepted unless, at the time of entry, he or she: a) Is not under investigation; b) Is not on Absence Without Official Leave (AWOL) status; c) Is not serving any sentence, whether administrative or criminal; d) Has not been issued a reprimand within the last two (2) years; and e) Has not received an unfavorable rating in the latest performance rating. However, if an entrant possesses highly specialized skills not ordinarily acquired through regular recruitment and training, lateral entry may be allowed for ranks higher than those mentioned above: Provided, That the new entrant shall be able serve at least ten (10) years of active service in the PCG prior to reaching the mandatory retirement age.

SEC. 49. Exemption from Attachment, Taxes, Duties, Charges,

and Fees. - a) Retirement Benefits. - Retirement benefits granted by this Act, including benefits received from a duly instituted provident fund and mutual benefit association, shall enjoy the same tax treatment and exemptions as those granted to the AFP and PNP and other uniformed services under existing laws. For this purpose, such benefits shall not be subject to attachment, levy, or execution, unless otherwise provided, and subject to the pertinent provisions of the National Internal Revenue Code of 1997, as amended. b) Importation. - The importation of instruments, equipment, machinery, spare parts, and apparatuses by the PCG, directly and exclusively used in the performance of its official functions, shall be exempt from customs duties and taxes in accordance with the provisions of R.A. No. 10863, otherwise known as the "Customs Modernization and Tariff Act (CMTA)," and other applicable laws.

c) Regulatory Fees. - In the establishment and operation of radar and radio stations and other communication facilities, the PCG shall not be subject to payment of charges and fees as imposed by the 4 National Telecommunications Commission (NTC): Provided, That the 5 PCG shall only use frequencies as may be allowed or assigned by the NTC consistent with international regulations and guidelines. d) Other Government Fees. - The PCG shall, in the performance 9 of its functions, enjoy such rights and privileges enjoyed by other 10 governmental and law enforcement agencies, instrumentalities, and government-owned and controlled corporations such as exemption 12 from registration fees, application for license, and payment of fees as imposed by other governmental agencies or regulatory bodies.

SEC. 50. Loans, Grants, Bequests and Donations. - The PCG

may receive grants, bequests, and donations and enter into loan agreements, whether from local or foreign sources purposes relevant to its functions, subject to the provisions on donations under the General Appropriations Act and other pertinent laws, rules and regulations.

SEC. 51. PCG Properties and Lighthouse Reservations. - The

PCG shall continue to exercise exclusive ownership, possession, management, control and supervision over all properties transferred to it by virtue of Executive Order (E.O.) No. 475, dated 30 March 1998, and E.O. No. 477, dated 15 April 1998, such as, inter alia, vessels, watercrafts, firearms, armaments, munitions, communications and electronic equipment, vehicles, buildings, real state, lighthouse stations, and reservations.

SEC. 52. Establishment and Expansion of Coast Guard Bases,

Equipment, and Facilities. - To effectively perform its mandated functions of maritime law enforcement, safety, security, and environmental protection, the PCG is hereby authorized to establish, maintain, and expand bases, stations, equipment, and facilities in strategic locations across the country.

For this purpose, the PCG shall, in coordination with concerned government agencies, prepare and regularly update a comprehensive 3 development plan that specifies its assets, equipment and facility requirements including its floating assets, laboratories, land-based 5 support facilities, land mobility, arms and ammunition, rescue and 6 hospital ship, maritime monitoring surveillance and communications system, port facilities, air assets, and air stations.

SEC. 53. Implementing Rules and Regulations. - For submission

10 to the Secretary of Transportation for approval, the PCG, not later than 11 one hundred twenty (120) days from the effectivity of this Act, shall 12 issue rules and regulations, determine, fix or prescribe charges, rates, and penalties, as may be necessary, to implement its provisions, as well as the provisions of laws, issuances, decrees and orders related to the implementation of PCG functions.

SEC. 54. Appropriations. - The amount necessary for the initial

implementation of this Act shall be charged against the current year's appropriations of the PCG. Thereafter, such amount shall be included in the annual General Appropriations Act.

SEC. 55. Adjustment of Retirement Benefits and Pension

Indexation. - The retirement benefits of personnel affected by the implementation of R.A. No. 9993, Joint Resolution No. 4, s.2009 otherwise known as the "Joint Resolution Authorizing the President of the Philippines to Modify the Compensation and Position Classification System of Civilian Personnel and the Base Pay Schedule of Military and Uniformed Personnel in the Government, and for other Purposes" ', and Joint Resolution No. 1, s. 2018 entitled "Joint Resolution Authorizing the Increase in Base Pay of Military and Uniformed Personnel in the Government, and for Other Purposes" shall be adjusted to align with the retirement benefits of their contemporary ranks in the AFP and the PNP. All affected personnel shall be paid the corresponding differential in pay and allowances resulting from these adjustments.

SEC. 56. Transitory Provisions. - All previous appointments and

promotions of PCG uniformed personnel made prior to the enactment of this Act shall remain valid and subsisting.

SEC. 57. Separability Clause. - If any part or provision of this

Act is held invalid or unconstitutional, the other parts or provisions thereof not so declared shall remain valid and effective.

SEC. 58. Repealing Clause. - R.A. No. 9993 is hereby repealed,

10 and all other laws, decrees, orders, issuances, rules, and regulations or 11 parts thereof, which are inconsistent with this Act are hereby repealed 12 or modified accordingly.

SEC. 59. Effectivity. - This Act shall take effect within fifteen

(15) days following its complete publication in the Official Gazette or in two (2) newspapers of general circulation. Approved,