EXECUTIVE ORDER NO. 435, August 28, 1997

DEVOLVING TO THE AUTONOMOUS REGIONAL GOVERNMENT OF THE AUTONOMOUS REGION IN MUSLIM MINDANAO CERTAIN POWERS AND FUNCTIONS OF THE DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS, …

Executive Orders August 28, 1997
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WHEREAS, pursuant to Sections 1 and 15, Article X of the Constitution,
Republic Act No. 6734 entitled “An Act providing for an Organic Act for the
Autonomous Region in Muslim Mindanao” was enacted;

WHEREAS, under Section 2, Article V of RA 6734,  the Autonomous Region
in Muslim Mindanao (ARMM) has jurisdiction over matters devolved to it by the
Constitution and the Organic Act which include, among others, “the powers,
functions and responsibilities now being exercised by the departments of the
National Government”;

WHEREAS, pursuant to the aforesaid section of RA 6734, the powers, functions
and responsibilities exercised in the region by the Department of
Transportation and Communication (DOTC), its sectoral offices and attached
agencies are now devolved to the ARMM except “maritime, land and air
transportation and communication that affect areas outside the Autonomous
Region”;

WHEREAS, Section 16, Article X of the Constitution provides that “all
powers, functions and responsibilities not granted by this Constitution or by
law to the autonomous regions shall be vested in the National Government”;

NOW, THEREFORE, I, FIDEL
V. RAMOS,
President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby order:

Section 1. Declaration
of Policy.
In line with the policy of the
State under the Constitution to ensure the autonomy of local governments, it is
hereby declared the policy of the National Government that powers, functions
and responsibilities of departments of the National Government, its sectoral
offices and attached agencies devolved by virtue of the Constitution and RA
6734 be fully and expeditiously transferred to, and assumed and exercised by, the
Autonomous Regional Government (ARG) of the ARMM.

Section 2. Transfer of
Offices, Assets and Liabilities.
All offices
of the DOTC, its sectoral offices and attached agencies now existing in the
ARMM, including their personnel, equipment, properties, budgets, assets and
liabilities are hereby transferred to and placed under the control and
supervision of the ARG subject to Article XIX of RA 6734.

Section 3. Control and
Supervision of Transferred Offices of DOTC and its Attached Agencies.
Offices of the DOTC, its sectoral offices and attached agencies in
the ARMM transferred to and placed under the control and supervision of the ARG
shall cease to be part of the DOTC or its attached agencies and shall no longer
be under the control and supervision of the DOTC Secretary or the governing
boards of the attached agencies, as the case may be. These transferred offices
shall become either regional executive commissions, boards, bureaus or offices
as the ARG may, in its discretion and under its authority, structure them.
Pursuant to Section 18, Article VIII of RA 6734, the Regional Governor of the
ARMM, subject to the exceptions provided under the Organic Act, shall have
control over regional executive commissions, boards, bureaus or offices, and
shall ensure that the laws are faithfully executed.

Section 4. Devolution of
the Powers and Functions of DOTC.
The powers
and functions of the DOTC under Executive Order No. 125 as amended  and
Executive Order No. 292 (Administrative Code of 1987),  insofar as the
exercise thereof is confined to the ARMM and does not affect areas outside the
autonomous region, are hereby devolved to the ARMM subject to national
transportation and communication policies and programs.

Section 5. Devolution of
Specific Powers, Functions and Responsibilities of Sectoral Offices and
Attached Agencies of DOTC.
Insofar as the
exercise thereof by the ARG is confined to the ARMM and does not affect areas
outside the autonomous region, and subject to national transportation and
communication policies and programs, the following specific powers, functions
and responsibilities of the sectoral offices of the DOTC are hereby devolved to
the ARG:

A. LAND TRANSPORTATION
OFFICE (LTO)

1. To issue licenses to operate
motor vehicles within the ARMM to persons who upon written and practical
examinations have shown proficiency in the operation of motor vehicles,
pursuant to the provisions of RA 4136 and relevant laws; provided that driver’s
licenses issued by the ARG may be honored outside the ARMM subject to recording
and validation procedures of the Land Transportation Office;

2. To register motorcycles and
motorized tricycles and to charge registration fees therefor in accordance with
existing laws;

3. To enforce all transportation
and traffic laws, rules and regulations within the ARMM, confiscate licenses,
impound vehicles if warranted by law or regulation, and impose fines and
penalties to violators, including suspension and revocation of licenses and
registration, subject to observance of due process of law;

4. To issue rules and
regulations consistent with existing transportation and other relevant laws to
govern traffic and transportation in the ARMM.

B. LAND TRANSPORTATION
FRANCHISING AND REGULATORY BOARD (LTFRB)

1. To prescribe and regulate
routes, economically viable capacities, and zones or areas of operation of
public land transportation services provided by motorized vehicles within the
ARMM, consistent with the national public land transportation development
policies and plans; provided that the ARG and the LTFRB/DOTC shall coordinate
with regard to the establishment and regulation of inter-regional routes, zones
or areas of operation that pass through, include or involve the territory of
the ARMM;

2. To issue, amend, or revise
Certificates of Public Convenience (CPC) or permits authorizing the operation
of public land transportation services provided by motorized vehicles
exclusively within the ARMM, prescribe the appropriate terms and conditions
therefor, and for cause, suspend, cancel or revoke the same; provided that
jurisdiction over public utility vehicles with inter-regional CPC’s or permits,
that ply routes within the ARMM shall remain exclusively with the LTFRB;

3. To determine, prescribe,
approve and periodically review and adjust reasonable fares, rates and other
related charges, relative to the operation of public land transportation
services provided by motorized vehicles exclusively within the ARMM;

4. To issue preliminary or
permanent injunction, whether prohibitory or mandatory, in all cases within its
jurisdiction in which cases the pertinent provisions of the Rules of Court
shall apply;

5. To punish for contempt; both
direct and indirect in accordance with the pertinent provisions of, and the
penalties prescribed by, the Rules of Court;

6. To issue subpoenas and
subpoena duces tecum and summon witnesses to appear in any proceedings of the
appropriate office in the ARG, to administer oaths and affirmations, and in
appropriate cases, to order the search and seizure of all vehicles and
documents, upon probable cause and as may be necessary for the proper
disposition of the cause before it;

7. To conduct investigations and
hearings of complaints for violation of the public service laws on land
transportation and of the rules and regulations, orders, decisions or rulings
and to impose fines or penalties for such violations; provided that if the
violations possess inter-regional CPC’s or permits, the appropriate office of
the ARG in charge of enforcement of public service laws on land transportation shall
file and prosecute the appropriate cases with the LTFRB;

8. To review motu propio the
decisions/actions of the Provincial Franchising and Regulatory Offices within
the ARMM;

9. To promulgate rules and
regulations governing proceedings before the appropriate office in the ARG and
the Provincial Franchising and Regulatory Office. However, except with respect
to paragraphs 4, 5, 6 and 7 hereof, the rules of procedure and evidence
prevailing in the courts of law should not be controlling but rather the spirit
and intention of said rules. The appropriate office in the ARG and the
Provincial Franchising and Regulatory Offices shall use every and all
reasonable means to ascertain facts in each case speedily and objectively and
without regard to technicalities of law and procedures, all in the interest of
due process;

10. To fix, impose and collect,
and periodically review and adjust, reasonable fees and other related charges
for services rendered within the ARMM;

11. To formulate, promulgate,
administer, implement and enforce rules and regulations on land transportation
public utilities, standards of measurements or design, and rules and
regulations requiring operators of any public land transportation service to
equip, install and provide in their utilities and in their stations such
devices, equipment, facilities and operating procedures and techniques as may
promote safety, protection, comfort and convenience to persons and property in
their charges as well as the safety of persons and property within their areas
of operation; provided, that the same shall apply only within the ARMM and on
public transport vehicles under its jurisdiction; and provided further, that
the rules and regulations are consistent with existing laws and national
policies, and the designs and standards are not below nationally prescribed
levels;

12. To coordinate and cooperate
with other government agencies and entities concerned with any aspect involving
public land transportation services with the end view of effecting continuing
improvement of such services; and

13. To perform such other
functions and duties as may be provided by law, or as may be necessary, or
proper or incidental to the purposes and objectives of the ARG.

C. AIR TRANSPORTATION
OFFICE (ATO)

1. To manage, supervise and control
government airports within the ARMM, except the airside at such airports, where
aircraft are controlled and navigational aids and facilities are located, which
shall remain under the control and supervision of the National Government,
through the DOTC/ATO;

2. Upon close consultation with
the ATO, promulgate rules and regulations to promote safety and security in
civil aviation in the ARMM, which shall be consistent with law and
international regulations and standards;

3. To fix and impose reasonable charges
and fees on the use of its airports and related facilities under its control
and supervision;

4. To recommend to the ATO the
designation and establishment of airways within its jurisdiction and to
participate in studies pertaining to the development of civil aviation;

5. To extend technical
assistance to private airport operations entities within its territorial
jurisdiction;

6. To maintain and operate
aircraft necessary to carry out the objectives and activities of the ARG;

7. To design, install, manage,
operate, maintain and repair the airports in the ARMM in accordance with
national standards set by the ATO;

8. To enforce the rules and
regulations issued pursuant to R.A. 776 and other air transportation laws
within its jurisdiction and in coordination with the ATO, conduct
investigation, and upon observance of due process, impose penalties for the
violations thereof; provided that, on appeal, the President shall cause the ATO
to review the findings and conclusions of the ARG and to make recommendations
relative thereto; and

9. To perform such other
functions related to civil aviation as may be provided by law.

D. MARITIME INDUSTRY
AUTHORITY (MARINA)

1. To issue Certificate of
Public Convenience (CPC), Provisional Authority (PA) and Special Permit (SP)
for both contested and uncontested applications, provided that the vessels are
homeported and are operating exclusively within the ARMM territorial
boundaries; and provided further, that the issuance of CPC/PA/SP of vessels
homeported in the ARMM operating inter-regionally shall be forwarded to this
Authority;

2. To issue SP’s for the
temporary utilization of domestic vessels in the Brunei-Darussalam, Indonesia,
Malaysia and Philippines-East ASEAN Growth Area (BIMP-EAGA) routes;

3. To accredit banca operators
whose principal office is located within the ARMM jurisdiction;

4. To register vessels of all
tonnages homeported within its territorial boundary and to issue the
corresponding document appurtenant thereto;

5. To conduct safety inspection
of vessels homeported and operating with the ARMM jurisdiction so as to
determine the Safety of Life at Sea (SOLAS) compliance and manning
requirements;

6. To issue Coastwise
License/Bay and River License/Pleasure Yacht License on all domestic vessels
homeported within the ARMM regional boundaries;

7. To issue Motorboat Operator’s
License for operators of vessels weighing three (3) Gross Registered Tonnages
(GRT) and below which are homeported and are operating exclusively within the
ARMM jurisdiction;

8. To issue licenses to
shipyards within the ARMM subject to existing guidelines;

9. To issue Domestic Seafarer’s
Identification and Record Book (SIRB) subject to existing MARINA rules and
regulations; and

10. To collect fees not
exceeding those charged under existing MARINA circulars and issue receipts
therefor in the exercise of the devolved functions.

E. PHILIPPINE PORTS
AUTHORITY (PPA)

1. To formulate, in coordination
with the Regional Development Office, a comprehensive and practicable port
development plan for the autonomous region and to program its implementation,
and review and update the same regularly in coordination with other regional
agencies;

2. To supervise, control,
regulate, construct, maintain, operate and provide such facilities or services
as are necessary in all ports within the ARMM;

3. To prescribe rules and
regulations, procedures, and guidelines governing the establishment,
construction, maintenance, and operation of additional ports, including private
ports in the ARMM;

4. To license, control, regulate,
supervise any construction or structure within any port in the ARMM;

5. To provide services (whether
on its own, by contract or otherwise) within the region and the approaches
thereof including but not limited to:

5.1 berthing, towing, mooring,
moving, slipping, or docking any vessel;

5.2 loading or discharging any
vessel; and

5.3 sorting, weighing,
measuring, or otherwise, handling goods.

6. To exercise control or
administer any foreshore rights or leases within its jurisdiction;

7. To coordinate with the
Regional Bureau of Lands or any other regional government agency of
corporation, in the development of any foreshore area;

8. To control, regulate, and
supervise pilotage and the conduct of pilots in any port in the ARMM;

9. To provide or assist in the
provision of training programs and training facilities for its staff, or staff
of port operators and users for the efficient discharge of its functions,
duties, and responsibilities;

10. To exercise the corporate
powers and the police authority now vested in the Regional Ports Authority;
provided that the exercise of police authority shall not extend to areas
outside the autonomous region;

11. To perform such acts or
provide such services as may be deemed proper and necessary to carry out and
implement the provisions of this Executive Order.

F. NATIONAL
TELECOMMUNICATIONS COMMISSION (NTC)

1. To issue Certificates of
Public Convenience for the operation of communication utilities and services,
radio communication systems, wire or wireless telephone or telegraph
systems, radio and television broadcasting system and other similar public
utilities within the ARMM;

2. To establish, prescribed and
regulate areas of operation of particular operators of public services
communications within the ARMM; and determine and prescribe charges or rates
pertinent to the operation of such public utility facilities and services
except in cases where charges or rates are established by international bodies
or associations of which the Philippines is a participating member or by bodies
recognized by the Philippine Government as the proper arbiter of such charges
or rates;

3. To grant permit for the use
of radio frequencies for wireless telephone and telegraph systems and radio
communication systems including amateur radio stations and radio and television
broadcasting systems within the region;

4. To establish and prescribe
rules, regulations, standards and specifications in all cases related to the
issued Certificates of Public Convenience and administer and enforce the same
within its territorial jurisdiction;

5. To coordinate and cooperate
with government agencies and other entities concerned with any aspect involving
communications service in the ARMM;

6. To promulgate such rules and
regulations applicable within its jurisdiction, as public safety and interest
may require, to encourage a larger and more effective use of communications,
radio and television broadcasting facilities and to maintain effective
competition among private entities in these activities whenever the appropriate
office in the ARG finds it reasonably feasible;

7. To supervise and inspect the
operation of radio stations and telecommunications facilities in the region;

8. To undertake the examination
and licensing of radio operators in the region;

9. To undertake, whenever
necessary, the registration of radio transmitters and transceivers operated and
used within its territorial jurisdiction;

10. To perform such other
functions as may be prescribed by law.

G. CIVIL AERONAUTICS
BOARD (CAB)

1. To monitor and enforce, in
coordination with the CAB, compliance with laws, rules and regulations
governing those engaged in air transportation and air commerce in the ARMM;

2. To regulate the activities of
air carriers, airfreight forwarders, general sales agents and cargo sales
agents operating within the ARMM consistent with existing laws.

Section 6. Transition
Period.
During such period, not to exceed one
(1) year from the effectivity hereof, that the ARG is structuring, organizing,
staffing, equipping, and otherwise preparing the appropriate ARG offices for
the full discharge of their powers, functions and responsibilities as devolved,
the DOTC, its sectoral offices and attached agencies are hereby directed to
extend their assistance and support to ensure that the services needed by the
public are not disrupted.

Section 7. Standard
Setting.
The ARG, in the exercise of the
powers devolved in this Executive Order, may formulate its own standards;
provided, that in the formulation of regional standards, it shall adhere to the
national standards and pertinent national laws as a minimum requirement.

Section 8. Programs and
Projects.
Locally-funded projects of DOTC, its
sectoral offices and attached agencies within the ARMM including the
corresponding project staff, budgets and assets thereof, are hereby transferred
to the ARG. Control and supervision of foreign funded or assisted projects
covered by existing contracts, that are to be implemented within the ARMM,
shall be the subject of a Memorandum of Agreement between the ARG and the DOTC
or the agency concerned, as the case may be.

Section 9. Assets,
Equipment, Offices and Land.
All existing
assets and equipment being utilized or programmed for use in the four (4)
provinces of the ARMM are hereby turned over to the ARG. The offices and land
where the edifices are built or equipment is located or installed within the
ARMM are likewise hereby transferred to the ARG.

Section 10. Personnel
Matters.
Plantilla positions, whether filled
or unfilled, of the regional field offices of the DOTC and its sectoral offices
and attached agencies in the four (4) ARMM provinces, are hereby placed under
the supervision and control of the ARG. Personal services budgets are
henceforth also transferred.

All offices and employees in the
career executive/career service in the offices to be absorbed by the ARG shall
be considered regular and permanent officials and employees of the ARG and
shall retain their seniority rights, compensation, and other benefits. They
shall enjoy security of tenure and shall not be removed except for valid cause,
after due notice and hearing in accordance with Civil Service laws, rules and
regulations.

Personnel who refuse to be
absorbed by the ARG shall have the following options:

a) Regular retirement;

b) Transfer to an office of the
DOTC, its sectoral office or its attached agencies in another region if
position is available and management so approves the same; and

c) Transfer to another office
based on the availability of positions

Nothing herein shall be
interpreted or construed as depriving any affected personnel of any rights and
benefits under the Civil Service and other laws.

Section 11.
Proportionate Allocation of Personnel, Budgets and Other Resources.
DOTC offices or its attached agencies which do not have offices within
the ARMM but have regional offices in Region 9 and 12, which serve the four (4)
ARMM provinces, shall immediately transfer to the ARG a proportionate share of
their positions/personnel, equipment, budgets, assets and other resources.

Section 12. Special
Assistance.
The DOTC, its sectoral offices or
attached agencies has no or few resources to transfer to the autonomous region,
special assistance in the form of additional budgetary support or technical
assistance in kind shall be extended to the ARG.

Section 13. Technical
Assistance.
The DOTC, its sectoral offices and
attached agencies shall extend technical assistance and other related services
to the ARG in improving the administrative, fiscal and technical skills of its
personnel.

Section 14. Submission of Quarterly Report. A quarterly
report on the status of the implementation of this Executive Order shall be
submitted to the President by the ARG.

Section 15. Implementing Rules. The DOTC in consultation with
the ARG, shall issue the implementing rules and regulations of this Executive
Order within sixty (60) days from its effectivity.

Section 16. Separability
Clause.
If any provision of this Executive
Order is declared unconstitutional or contrary to law, the validity and
effectivity of the other provisions hereof shall not be affected.

Section 17. Effectivity.
This Executive Order shall take effect fifteen
(15) days after its publication in a national newspaper of general circulation
and one (1) newspaper of general circulation in the ARMM.

Done in the City of Manila, this
28th August, in the year of Our Lord, Nineteen Hundred and Ninety Seven.

(Sgd.) FIDEL
V. RAMOS

President of the Philippines

By the President:

(Sgd.) RUBEN D. TORRES
Executive Secretary

 

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