Amendments on Temporary License to Operate Rules

The Circular is issued pursuant to Section 17, RA 5487, as amended.
It directly amends Paragraphs b & c of Section 8, Rule IV of the 2003 IRR of RA 5487, as amended.
The amended provisions govern the status and validity of License to Operate (LTO) for private security agencies and PSAs under the licensing framework established by the IRR.

The Circular authorizes temporary LTO as an initial and conditional issuance for PSAs that cannot yet meet security personnel minimums or licensing standards.
Temporary LTO is structured to allow agencies to attain the 200 minimum number of security personnel or to comply with licensing standards before regular LTO issuance or re-issuance.
The licensing framework emphasizes that extension and continued authority depend on compliance with personnel growth and licensing standards.

Temporary LTO is an initial and conditional issuance to new private security agencies and to PSAs holding regular LTO that are not able to maintain the minimum number of security personnel or conform to standards.
Temporary LTO is granted to enable the PSA to attain the 200 minimum number of security personnel or to comply with licensing standards prior to issuance/re-issuance of regular LTO.

The PNP, thru CSG-SOSIA, may grant extensions of temporary license subject to specific requirements and limitations.
After the initial period of full two (2) years, a First Extension for one (1) year is allowed if MDRs show an increasing number of security personnel during the license validity and the PSA reached at least 100 at the time of filing the application for new regular LTO or at any time during the validity of new/temporary LTO.
If the PSA does not meet the First Extension threshold, the issuing authority shall cancel the new/temporary LTO and, subsequently, the Chief, SOSIA must issue the corresponding Cease to Operate (CTO) order.
After the First Extension, a Second and Last Extension for one (1) year is allowed if MDRs show an increasing number of security personnel during the license validity and the PSA reached at least 150 at the time of filing the application for new/temporary LTO or at any time during the validity of new/temporary LTO.
If the PSA does not meet the Second Extension threshold, the issuing authority shall cancel the new/temporary LTO and, subsequently, the Chief, SOSIA must issue the corresponding CTO order.

After the Second Extension, a new/temporary LTO may be upgraded to new regular LTO based on Section 10(b), Rule IV (License to Operate), 2003 IRR of RA 5487, as amended.
If the PSA fails to conform with the regular licensing standards, the issuing authority shall cancel the new/temporary LTO and the Chief, SOSIA must issue the corresponding CTO order.

PSAs whose new/temporary LTOs are expiring in 2010—including those that already applied for extension earlier and prior to the date of effectivity of this Circular—may be granted extension of temporary licenses.
The extension is available only if the PSA’s new/temporary LTO has not yet been extended since its initial/conditional issuance.
If the concerned PSA still fails to attain the required number of 200 security personel despite the total of four years given to operate and conform with licensing standards, the agency’s right and capacity to transact security business or enter into contracts in its name are revoked/lost with finality.

An operator, owner, manager, authorized representative, or licensee of a PSA with an expired new/temporary LTO who failed to get extension under this Circular and within the same period given to applicants for renewal of regular LTOs is barred from getting another new/temporary LTO.
The bar applies whether or not he/she was issued a cancellation order and/or a CTO order.

An applicant for extension of a new/temporary LTO must submit a written request stating the reasons, and must submit supporting documentary requirements, including documents required for a regular license application.
Supporting documentary requirements include:
- (6.a) updated proof of SSS/VAT payments and DOLE clearance;
- (6.b) national registration and license fees, and surety bond;
- (6.c) updated Firearms Records Verification (FRV), Master List of Firearms, and/or Certification; and
- (6.d) revised/amended Feasibility Study, focusing on specific/realistic activities to be undertaken by the PSA to conform to licensing standards or attain the 200 minimum required employed/deployed security personnel.
All applicants for extension of new/temporary LTO are required to pay the same applicable fees/penalties collected from applicants for new regular LTO or renewal of regular LTOs.

All issued new/temporary LTOs issued prior to the date of effectivity of the Circular remain valid until their expiry dates, unless sooner revoked/cancelled.
Unless sooner cancelled or revoked and provisions are modified, all licenses to operate have a validity of two years.
Temporary LTOs upon expiration may be extended based on the provisions of the immediate preceding paragraph.

SOSIA must strictly/closely monitor and evaluate compliance of PSAs granted extension with their undertakings to conform with licensing standards or attain the 200 minimum employed/deployed security personnel.
CSG-SOSIA must activate a Board that acts within 15 days upon all completed requests for extension of temporary licenses.
Falsification of any supporting documentary requirements submitted to SOSIA and/or failure to show good cause for extension may lead to denial of the application/s, without prejudice to the filing of administrative/civil/criminal cases under existing laws, rules and regulations.
Failure of the PNP to act on an application and/or request for extension/renewal of LTO within the prescribed period does not automatically result in extension or renewal, because the activity it regulates may pose danger to public safety.

The Circular amends Rule IV (License to Operate) by inserting and regulating Temporary LTO and its extension lifecycle.
The extension relief for 2010-expiring temporary licenses operates for qualifying PSAs that have not yet been extended since initial/conditional issuance.
The Circular’s effectivity runs only after the required administrative publication step with the University of the Philippines Law Center for 15 days.