Amendments to the Revised Implementing Rules and Regulations of Republic Act No. 5487

April 8, 2017

PNP RESOLUTION

 

WHEREAS, in Republic Act No. 5487, otherwise known as "The Private Security Agency Law," it is the Philippine National Police (PNP) that exercises general supervision over the operation of all private detectives, watchmen or security guards agencies and therefore, has the exclusive authority to regulate and to issue the required licenses to operate security and protective agencies;

WHEREAS, the PNP, pursuant to Section 24, Republic Act No. 6975 (The DILG Act of 1990), is mandated to supervise and control the training and operations of security agencies and issue licenses to operate security agencies and to security guards and private detectives for the practice of their professions;

WHEREAS, during the assumption of office of President Rodrigo Roa Duterte, he emphasized that the license requirements should be streamlined and the processing period should be shortened;

WHEREAS, there is a need to delist certain government clearances as documentary requirements in license to operate application in line with the pronouncement of the President;

WHEREAS, in the Red Tape Assessment Report of the Office of the Deputy Ombudsman for the Military and Other Law Enforcement Offices, it was found out that there are clearances which can be delisted from the requirements for new applications/applications for renewal of license to operate;

WHEREAS, to meet and adjust to the evolving trends in the private security industry, there is a need to revise or amend certain provisions of the 2003 Revised Rules and Regulations Implementing RA No. 5487 relating to the organization, license application requirements, and processing of license or certification;

NOW, THEREFORE, the Chief, PNP, pursuant to Section 17, RA No. 5487 and in conjunction with Section 26, RA No. 6975, in consultation with the industry stakeholders, hereby resolves to introduce the following revisions and amendments:

SECTION 1. In addition to the terms defined under Section 1, Rule III of the 2003 Revised Rules and Regulations Implementing RA No. 5487, the following terms, for purposes of this amendatory policy, shall mean, or to be understood as defined herein:

a. Other security service providers — refer to those licensed or accredited agencies, other than private security agencies, private detective agencies, or company guard units, providing security services to clients, such as canine, armored, event, or security service providers as may be identified later by the PNP through SOSIA.

b. Temporary LTO — refers to a permit issued to a new applicant eligible to have a license to operate his/her/its security business but without the required minimum number of security personnel, or issued to a security service provider unable to maintain the minimum number of security personnel or conform to licensing standards during renewal.

c. Reversion — refers to the act of downgrading the status of the license to operate of the private security service provider from regular to temporary which is dependent on the minimum number of security personnel or on conformity to the licensing standards.

SECTION 2. Sections 1, 2, 3, 4 and 5, Part 1, Rule IV and Sections 6, 7, 8, 9, 10, 11, 12, 13, and 14, Part 2, Rule IV of the 2003 Revised Implementing Rules and Regulations of RA No. 5487, as amended, is hereby further amended to read as follows:

PART 1

SECTION 1. The following may organize and maintain:

a. Private Security Agency or Private Detective Agency — Any Filipino citizen or corporation, association, partnership that is one hundred percent (100%) owned and controlled by Filipino citizens may organize and maintain a Private Security Agency or Private Detective Agency.

b. Company Security Unit — Any juridical entity establishing its own security department or unit shall be organized and registered as a company security unit.

c. Government Guard Unit — Any government agency, government-owned and controlled corporation (GOCC), local government unit (LGU), and state university and college (SUC) shall register its security unit to SOSIA.

d. Other security service providers. The organization, requirements, standards, operation and training for private security, armored, canine, and security event services, and such security providers as may be identified later by SOSIA, shall be provided in an SOP issued by the Director, CSG.

SECTION 2. Basic requirements for a Licensee. —

a. The licensee of a Private Security Agency/Private Detective Agency must:

1. Be a Filipino citizen;

2. Be at least twenty-five (25) years of age;

3. Be a baccalaureate degree graduate and/or commissioned officer in the inactive service or retired from the Armed Forces of the Philippines or the Philippine National Police;

4. Possess a valid Security Officer/Consultant License issued by SOSIA; and

5. Be of good moral character.

b. The licensee of a Company Security Unit must:

1. Be a Filipino citizen;

2. Be not less than twenty-five (25) years of age;

3. Be a baccalaureate degree graduate and/or commissioned officer in the inactive service or retired from the Armed Forces of the Philippines or the Philippine National Police; CAIHTE

4. Possess a valid Security Officer/Consultant License issued by SOSIA; and

5. Be of good moral character.

c. The head or supervisor of a Government Guard Unit must:

1. Be not less than Twenty-five (25) years of age;

2. Be a baccalaureate degree graduate;

3. Possess a Security Officer/Security Consultant License issued by SOSIA; and

4. Have a permanent plantilla position (supervisory level).

SECTION 3. Limitations, Disqualifications and Prohibitions. —

a. No person shall organize or have an interest in more than one private security agency and/or detective agency.

b. Elective or appointive government employees who may be called upon on account of the functions of their respective offices in the implementation and enforcement of the provisions of Republic Act 5487, as amended, and its implementing rules and regulations, and any person related to such government official and/or employee by affinity or consanguinity up to the third civil degree, shall not hold an interest, directly or indirectly, in any security or watchman agency.

c. No agency shall offer, render or accept services in illegal gambling and/or drug dens, or other illegal business establishments or enterprises.

d. No juridical entity shall put up its own security unit without first being registered as company security unit with SOSIA.

e. The extent of the security guard service being furnished by the security agency shall not go beyond the compound and/or property of the person or establishment contracting the security service except when the security guard is escorting big amount of money or valuables.

f. All agencies shall maintain their own main office based on their registered address in the License to Operate. For those agencies with regional operations outside their main office, they shall be required to register with the concerned Regional Civil Security Unit and, at the local level, with the nearest city/municipal police station and/or city/provincial police office with the authenticated copies of following documents:

1. License to Operate;

2. List of registered FAs to be issued;

3. License to own and possess FA;

4. List of guards to be deployed; and

5. Copy of Security Service Contract/Agreement.

g. Prohibition on "KABIT SYSTEM" operators.

1. No licensed security agency shall operate, promote and enter into an agreement of "merger" (kabit system) with any person or a group of persons for the purpose of organizing a branch unit or subsidiary under separate control and ownership. Merger of security and detective agencies shall not be recognized without prior approval from the Securities and Exchange Commission with respect to their Articles of Incorporation and the Department of Trade and Industry, with regard to their business name.

2. Any of the following circumstances or a combination thereof shall be considered prima facie evidence of the existence of "Kabit System": aScITE

a) Maintaining a separate branch, unit or subsidiary office aside from the main office of the agency situated within the same locality;

b) Receiving direct payments from the agency's clientele and issuing officials receipt of their own distinct from that issued by the agency concerned;

c) Remitting directly Social Security System premiums, PhilHealth contributions and other premium for other policy insurance benefits by the aforementioned branch, unit or subsidiary office;

d) Existence of an agreement between the licensee and a branch manager thereof, whereby the latter obligates himself to pay a certain percentage of his income to the former on the condition that the control and supervision of the guards posted by the said branch shall be coursed through the manager thereof and that the licensee shall be exempted from liabilities/obligations attendant to the operation of the said branch;

e) Keeping/maintaining separate payrolls for the branch employees signed and/or approved by the branch manager only;

f) Absence of record of monthly income remittances to the main office when said branch is authorized to make collections from the clients of the licensee; and

g) All other similar acts tending to show separate and distinct relationship/personality/ownership/management.

SECTION 4. Organizational structure of private security agencies/company security units/government guard units. —

a. Private security agencies and private detective agencies shall conform with the organizational structure, personnel, equipment, training and uniform as provided for hereinafter.

b. Company security units shall be organized to conform substantially with the organizational structure, equipment, training and uniform prescribed for private security agencies.

c. Government Guard Units shall be organized to conform with the organizational structure of the said government firm but not contrary to the organizational structure as prescribed for government security units.

SECTION 5. On employment. —

a. No regular license shall be granted to any private security agency unless it has a minimum of two hundred (200) licensed private security guards under its employ. DETACa

b. No regular license shall be granted to any private detective agency and/or company security unit unless it has a minimum of thirty (30) licensed private detectives/protection agents/company security guards under its employ.

c. The maximum number of private security guards that a PSA/CSU may employ shall be one thousand (1000).

d. Certificate of Registration shall be granted to a government guard unit on a one time basis with employees performing security duties and functions.

PART 2

SECTION 6. Application for License to Operate (LTO). —

a. The application form (AL-01) shall be filled out by the licensee of PSA, PDA, CSU (whether single proprietorship, partnership and/or corporation).

b. All applications for LTO shall be filed with the Supervisory Office for Security and Investigation Agencies (SOSIA) for National Capital Region and Regional Civil Security Unit (RCSU) for other regions.

c. Applications of corporations, associations, partnerships shall include a copy of the certificate of registration with the SEC together with its by-laws and articles of incorporation. A board resolution must accompany the application of the licensee in the case of a corporation, stating therein that the licensee is part-owner and operator of the agency.

d. All applications shall be accompanied by a bond issued by any competent or reputable surety or fidelity insurance company duly accredited by the Insurance Commission, which bond shall answer for any valid and legal claim against the agency by its clients or employees or the PNP.

SECTION 7. License to Operate (LTO). — License to Operate shall be issued corresponding to the purpose/s of the following:

a. Private Security Agency LTO. A license certificate issued to persons, corporations, associations, partnerships, whose primary purpose is to provide/offer security services for hire, commission, or compensation.

b. Private Detective Agency LTO. A license certificate issued to persons corporations, associations, partnerships, whose primary purpose is to provide/offer detective and protective/personal security services for hire, commission, or compensation.

c. Company Security Unit LTO. A license certificate issued to persons, corporations, associations, partnerships not doing business nor purposely organized or principally as private security guard or detective agency but utilize their own trained employees to render security duties and functions for their own assets and/or properties.

d. Government Guard Unit Certificate of Registration (CR). A certificate issued to national or local government or any agency or instrumentality thereof, or to government-owned or controlled corporation not doing business nor organized purposely or principally as a private security guard or detective agency but utilizes for its purpose any of its employees to render government security and/or detective duties and functions by submitting the following documents: HEITAD

1. Letter request addressed to Chief, SOSIA;

2. Charter of the agency concerned;

3. List of licensed/registered firearms;

4. List of government guards handling firearms with their personal data sheet;

5. Firearm Records Verification/Firearm Information Management System;

6. Designated posts of the government guards; and

7. Appointment Order/Plantilla.

SECTION 8. Status and Validity of License to Operate. — The status of license certificate in Section 7 above shall be issued in conformity with the following:

a. Temporary LTO — is a permit initially and conditionally issued to new private security agencies, private detective agencies, and company security forces until it has reached a minimum number of guards. This temporary LTO is also issued to PSAs/PDAs and CSUs holding regular LTO not able to maintain the minimum number of security personnel or conform to licensing standards during renewal. Temporary LTO is renewable until such time that it can qualify to have a Regular LTO.

b. Regular LTO — issued to PSAs/PDAs/CSUs holding an LTO on a temporary status after complying with the licensing requirements, and having obtained and maintained in its employ at least two hundred (200) security personnel for PSAs and to company guard units and private detective agencies having obtained and maintained in its employ at least thirty (30) security personnel and private detectives, respectively.

c. Unless sooner cancelled or revoked and provisions hereof modified, a Temporary LTO is valid only up to two years and a Regular LTO shall have a validity of two (2) years up to five (5) years, as the case may be, depending on the policies governing the same as promulgated by the CPNP.

d. The expiry date of new LTO shall be on the last day of the expiration month.

SECTION 9. License to Operate (LTO) Processing. —

a. All applications for LTO filed shall be processed by SOSIA for NCR and RCSUs for other regions and shall be endorsed/forwarded to the Chief, PNP or Director, CSG, as the case may be, for approval.

b. Upon compliance with all requisites for the issuance of LTO and after approval of the C, PNP/D, CSG, the corresponding LTO shall be issued upon payment by the applicant of applicable fees and/or other charges pursuant to existing laws:

1. National License Fee

2. Security Personnel Registration Fee

3. Annual Income Tax Return (ITR)

4. Local Government Business Tax

5. Bond issued by any competent or reputable surety or fidelity or insurance company duly accredited by the Insurance Commission in the sum of ten thousand pesos in the discretion of the CPNP which bond shall answer for any valid and legal claim against the agency by its clients or employees

c. New applications with lacking documentary requirements shall not be accepted for processing. Nonetheless, applications either with lacking documentary requirements or failed to maintain 200 security guards in its employ, which are submitted for renewal of regular LTO may be accepted and processed, but the LTO shall be reverted to temporary status and subsequently changed to regular LTO when the documentary requirements shall have been complied with.

d. All accepted applications for LTO shall be processed for completeness of documentary requirements and conformity to standards.

e. All applications for renewal of LTO must have a valid firearms registration for at least three (3) months at the time of the filing of application.

f. No PSA/PDA shall be allowed to use terms used by the military, police/law enforcement agency such as "command", "group", "forces" or other similar terms or words as part of its name as a juridical entity.

SECTION 10. Documentary Requirements. —

a. Documents accompanying applications for New License to Operate for Private Security Agency/Private Detective Agency:

1. Endorsement from Chief, RCSU with inspection report (for provincial application only)

2. LTO Application Form (AL-01)

3. Registration documents from DTI/SEC

4. Bio-Data/Information Sheet for Director/Partners

5. Official Receipt for National License Fee (P2,500 per year) to be paid only after approval of the application

6. Registration Fee (P50 per guard per year) to be paid only after approval of the application

7. Surety Bond for the period of license

8. Bank Certificate (P500,000)

9. Valid SO/SC LESP of the Licensee

10. Training Certificate (PSEMS by SOSIA) of the Licensee or Staff

11. Proof of Occupancy (Lease of Contract, etc.)

12. For Company Security Unit: Same as 1, 2, 3, 4, 5, 6, 9, and 10 above and company profile and company endorsement on the designation of the licensee as head or chief of its security force unit

b. Documentary Requirements for Renewal of Regular/Temporary License to Operate for Private Security Agency/Private Detective Agency:

1. Endorsement from Chief RCSU with Inspection Report

2. LTO Application Form (AL-01)

3. Monthly Disposition Report

4. Official Receipt for National License Fee to be paid only after approval of the application

5. Official Receipt for Security Guards Registration Fee to be paid only after approval of the application

6. Annual Income Tax Return with VAT Payments for the last 3 consecutive months

7. Surety Bond with Official receipt

8. Training Certificate (PSEMS by SOSIA) of the Licensee or Staff

9. Business Permit from the LGU (Where main office is located)

10. Photocopy of previous LTO issued (Pending SOSIA computerization)

11. For Company Security Unit: Same as 1, 2, 3, 4 5, 8, 10 above and payslips of security personnel

c. LTO processing, standards and documentary requirements shall be prescribed in a Standard Operating Procedure (SOP) issued by the Director, CSG.

SECTION 11. Renewal of License to Operate. —

a. Filing of Applications for Renewal and Late Filing. All applications for renewal of regular and temporary LTO shall be filed within sixty (60) days before expiry date of LTO. Applications filed/accepted after the expiration shall be penalized for late filing.

b. Failure to Conform to the Standards for Renewal. Holders of regular licenses not able to maintain the 200 minimum number of security personnel under its employ or license renewal requirements at the time of filing of application shall be reverted to temporary status and be issued with temporary LTO. Within the validity of the reverted LTO, the agency-applicant may apply, with the required minimum number of employed security personnel or satisfy the lacking documentary requirements for change of status back to regular LTO. In which case, the following shall be required:

1. Valid LTO and latest MDR (for 200 minimum number of security guards); or

2. Valid LTO and lacking documents required at the time of application for renewal.

c. Failure to file for renewal. The LTO of PSAs, PDAs, and CSUs that fail to file for renewal of temporary or regular LTO sixty (60) days after its expiry date SHALL BE CANCELLED AFTER DUE PROCESS.

SECTION 12. Approval, Reversion, Cancellation, and Suspension of LTO. — Unless revoked or modified by the Chief, PNP, the authority to approve, cancel or suspend the license to operate shall be exercised by the following:

 

a. Approval of New Regular LTO	CPNP
b. Cancellation of Regular LTO	CPNP
c. Re-instatement of Regular LTO	CPNP
d. Suspension of Regular LTO	CPNP
e. Renewal of Regular LTO	DCSG
f. Approval of Temporary LTO	DCSG
g. Reversion of Regular to Temporary LTO	DCSG
h. Change of status from Temporary LTO to Regular LTO	DCSG
i. Cancellation of Temporary LTO	DCSG
j. Suspension of Temporary LTO	DCSG

 

SECTION 13. Cancelled LTO on the basis of non-renewal. — An agency that fails to renew its LTO after sixty (60) days of grace period shall be notified by SOSIA within fifteen (15) days therefrom. The agency, within ten (10) days upon receipt of the notice, shall submit its written justification to SOSIA. In the event that the agency failed to submit its justification, or when the justification has no merit, the LTO of the concerned agency shall be recommended for cancellation by Chief, SOSIA. The agency shall be required to make prior payments of all arrears incurred during the period it was in operation despite an expired LTO.

All cancellations shall be issued with corresponding Cease to Operate (CTO) orders from the Chief, PNP or Director, CSG, as the case may be. Thereafter, the concerned agency shall stop its operation and deposit its firearms with the Firearms and Explosives Office (FEO-CSG) or the Regional Civil Security Unit Office for safekeeping until legal disposition thereof by the agency in accordance with existing firearms laws, rules, and regulations.

SECTION 14. Voluntary Cease to Operate. — Anticipated cessation of operations voluntarily and officially submitted by the agency shall be issued with CTO bearing the effectivity date of such anticipated cessation. Thereafter, the concerned agency shall stop its operation and deposit its firearms (if any) with the Firearms and Explosives Office (FEO-CSG) or Regional Civil Security Unit Office (RSCU) for safekeeping until legal disposition thereof by the agency in accordance with existing firearms laws, rules, and regulations. The agency shall be required to make prior payments of all arrears incurred during the period prior to the processing of CTO order by SOSIA."

SECTION 3. Scope and Coverage. — These amendments shall cover all applications for licenses to operate that are filed before, or that may be filed after, this effectivity of this Resolution.

SECTION 4. Repealing Clause. — All SOPs, circulars, rules, regulations, and issuances, or parts hereof, which are inconsistent with this Resolution are hereby repealed, amended, or modified accordingly. All other SOPs, circulars, rules, regulations, and issuances which are not inconsistent therewith shall continue to be in force and effect.

SECTION 5. Separability Clause. — If any provision, or part herein, of this Resolution is declared null and void by competent authority, the remaining provisions shall not be affected and shall remain in full force and effect.

SECTION 6. Effectivity. — These amendments shall take effect after fifteen (15) days from its publication in the Official Gazette or newspaper of general circulation. A copy of this Resolution shall be deposited with the Office of the National Administrative Register at the University of the Philippines Law Center in compliance with the Revised Administrative Code of 1987, as amended. ATICcS

(SGD.) RONALD M. DELA ROSAPolice Director GeneralChief, PNP

Published in The Philippine Star on April 26, 2017.