Private Security Services Industry Act

Declaration of State policy and purpose

Section 2 recognizes the vital role of the private sector in the protection of the people and safeguarding of property and in maintaining peace and order.
Section 2 mandates adopting measures to strengthen regulation of the private security services industry.
Section 2 requires establishing quality standards to ensure competent private security personnel and professionals that complement law enforcement authorities in preserving public order.

Key definitions and covered activities

Section 3(a) defines License to Exercise Security Profession (LESP) as a permit issued by the Chief of the Philippine National Police (PNP) (or duly authorized representative) recognizing a natural person qualified to perform duties as a security professional or training personnel.
Section 3(b) defines License to Operate (LTO) as a permit issued by the Chief PNP (or duly authorized representative) authorizing a person to employ and deploy security guards, K9 teams, protection agents, private detectives and other licensed specialized security personnel, or authorizing a juridical person to establish, engage, direct, manage, or operate a private detective agency or private security agency/guard force after payment of prescribed dues/fees and compliance with requirements under implementing rules.
Section 3(c) defines Pre-Licensing Training Programs as licensing pre-requisite and pre-licensing training programs including training and academic programs/courses to provide basic skills and educational backgrounds for the security and detective profession (including Basic Security Guard Course and Security Officers Training Course).
Section 3(d) defines Private Security Agency (PSA) as any person (natural or juridical) that contracts, recruits, furnishes, or posts security guards; or solicits entities to engage services; for hire/commission/compensation through subscription or as consultant/trainer for corporations involving national security or interest such as operation/management of domestic or ocean vessels, airplanes, helicopters, seaports, airports, heliports, landing strips; or provides highly specialized security/investigation/security-escort services like gangway security, catering security, passenger profiling, baggage examination, providing security on board vessels/aircraft, or other security needs the PNP approves.
Section 3(e) defines Private Security Industry as providing security consultancy, management, administration, operation, and provision of private/company watchman/guarding/investigative work, security training, K9 security, armored vehicle security services, alarm system monitoring services, CCTV suppliers and other security hardware providers, personal protection services, or security consultants.
Section 3(f) defines Private Security Professional (PSP) as a person issued a valid LESP of any classification/category after satisfying qualifications and requirements set forth by law and implementing rules; it includes categories such as security watchmen, guards, officers, personal security escorts, private investigators, training officers/directors, K9 handlers/administrators/evaluators/trainers/kennel masters, and other certified/licensed security service providers, including security hardware planners/systems designers, security hardware operators, security managers, and security consultants, whether employed by agencies/corporations/government or independently practicing/providing professional services.
Section 3(g) defines Private Security Services as rendering/providing security services for compensation under a contract/terms of reference, including guarding establishments and conducting access control/denial physically, manually, or via electronic monitoring systems to secure areas/property and protect persons, maintain peace and order, conduct private security training, and conduct investigation; it also includes contracting, recruiting, training, furnishing, or posting security guards and soliciting entities to engage security guard services or those of security guards for hire/commission/compensation via subscription or as consultant/trainer.
Section 3(h) defines Private Security Training Agency (PSTA) as persons (natural or juridical) engaging in providing training and academic programs/courses approved and prescribed by the PNP and adopted by TESDA, including training for pre-licensing requirements, periodic and non-periodic in-service skill refreshers, and other specialized private security skills development.
Section 3(i) defines Security Consultant as a law-authorized security professional providing services such as design/formulation of security plans, threat and vulnerability assessment, resiliency planning, security surveying/auditing, risk management, travel security training, event security planning/management, emergency/incident planning and management, crisis management, business continuity, and other security-related solution formulation services other than providing guards/watchmen.
Section 3(j) defines Security Hardware as mechanical or electrical devices designed to detect unauthorized entry, alert unlawful acts, identify/screen/control/repel/prevent entry of persons and vehicles/materials, record/document activities/events, and repel/prevent aggression.
Section 3(k) defines Security Hardware and Systems Designers and Planners as professionals specializing in designing security systems using security software/hardware combinations and training for operation/maintenance.

Registration and licensing requirements

Section 4 allows any Filipino citizen or juridical entity wholly owned and controlled by Filipino citizens to organize a Private Security Agency and provide security services, subject to the limit that it shall not employ more than two thousand (2,000) private security professionals.
Section 5 provides that no PSA operator/licensee shall be granted an LTO unless the applicant has qualifications: at least twenty-five (25) years of age; a bachelor’s degree; in ownership, a part owner of the company or, for a juridical entity, at least one (1) share of stock with voting rights; good moral character; no conviction of a crime involving moral turpitude; and physical/mental fitness including passage of the neuro-psychiatric test and drug test administered by the PNP or similar government centers/facilities.
Section 5 states that, for a juridical entity, the named operator or licensee must be the President or any director complying with the qualifications and duly authorized by the Board of Directors.
Section 6 requires a License to Operate (LTO) issued by the Chief PNP to operate and manage a PSA and PSTA, with the exception that an LTO for PSTA is granted only to a training school/institute/academy/educational institution offering courses prescribed/approved by the PNP or training programs accredited by TESDA.
Section 7 provides that LTO for PSA and PSTA is valid for a maximum of five (5) years, subject to renewal, and authorizes the Chief PNP to set a shorter validity period with adjusted fair and reasonable fees.
Section 8 requires every LTO application to be accompanied by a bond issued by a competent/reputable surety, fidelity or insurance company duly accredited by the Insurance Commission, to answer valid and legal claims by clients or employees; the bond amount must be reasonable and depend on the number of PSPs employed, as determined by the Chief PNP.
Section 9 sets PSA minimum administrative fee: PSAs shall not charge less than twenty percent (20%) of the total contract cost, subject to adjustment by the Department of Labor and Employment; additional fees may be charged for acquisition/maintenance of extraneous tools/equipment for security operations required by clients and for continuous deployment of PSPs in hazardous conditions.
Section 10 authorizes PSA entitlement to possess firearms only after successfully passing requirements prescribed by the Chief PNP and in accordance with Republic Act No. 10591 (Comprehensive Firearms and Ammunition Regulation Act), limiting PSA possession to small arms not exceeding one (1) firearm for each PSP (including single-post) in its employ.
Section 10 further requires that PSP firearm possession is allowed only during tour of duty, in proper uniform, within the establishment compound, except when escorting and securing large amounts of cash or valuables, in which case firearm determination is by the PNP.
Section 10 requires periodic inspection of PSA firearm inventories by the PNP.
Section 11 requires PSP uniforms to be different from uniforms of the AFP, PNP, and other law enforcement authorities, and directs the PNP (through authorized representative) to prescribe PSP uniforms, ornaments, equipment, and paraphernalia while on duty.

License to exercise security profession rules

Section 12 provides that no applicant shall be granted an LESP unless the applicant has: legal age; Filipino citizenship; physical and mental fitness; good moral character; and no conviction of a crime involving moral turpitude.
Section 12 requires, for LESP issuance, a letter of authority to conduct training issued by the Supervisory Office for Security and Investigation Agency (SOSIA), covering pre-licensing requirements for individual PSPs, periodic/non-periodic in-service skill refreshers, and other specialized PSP skills development.
Section 12 directs that the Chief PNP shall provide for additional qualifications for security consultant and security officers based on industry requirements and practice.
Section 13 provides that a valid LESP is five (5) years from the date of issuance.
Section 14 prohibits LESP grant without undergoing the Pre-Licensing Training Program defined by the Act, and requires the PNP to encourage opening local and regional security training centers to provide pre-licensing trainings.
Section 15 mandates the PNP, in partnership with private security training institutions or public institutions duly accredited to provide training education, to develop ladderized training and education that include basic security guard courses, specialized security guard courses, security officers training courses, detective training courses, and candidate protection agent courses, including enhancement trainings such as supervisory trainings and personal upliftment and other specialized trainings to place the security professional at a higher level from the current position.

Penalties, sanctions, and consequences

Section 16(a) provides that any violation of the Act is subject to corresponding penalties after due notice and hearing.
Section 16(a)(1)-(9) authorizes the Chief PNP to cancel, revoke, or suspend a PSA license to operate when the PSA: takes part in an armed conflict against the government; uses force or the threat of force or those it represents in a national or local electoral contest; uses authority in human rights violations; operates as a privately owned and operated para-military organization outside the regulatory framework established by the law and implementing rules/regulations adopted by the PNP; intentionally and maliciously uses electronic security devices or remote video surveillance in a manner that violates the privacy of civilians; acts with gross negligence dealing with violations, mistakes of members, or incompetency in its ranks; has its named operator or licensee convicted by final judgment of any crime or felony; violates Presidential Decree No. 442 (Labor Code of the Philippines), as amended, including its implementing rules and regulations; or acts in a manner rendering the PSA a detriment to the maintenance of peace and order.
Section 16(b) penalizes operation without a valid LTO by imposing a fine of not less than PHP 1,000,000.00 and not more than PHP 5,000,000.00 at the discretion of the Chief PNP.
Section 16(c) penalizes operation with an expired LTO by imposing a fine of not less than PHP 50,000.00 and not more than PHP 100,000.00 at the discretion of the Chief PNP.
Section 16(d) penalizes practice of private security profession without a valid license or with only an expired license by imposing a fine of not less than PHP 50,000.00 and not more than PHP 100,000.00 at the discretion of the Chief PNP; it imposes the same penalty on a PSA that deploys persons practicing without a valid license or with only an expired license.
Section 16(e) penalizes offering to render or rendering services to persons or places conducting illegal activities with imprisonment of not less than twelve (12) years and one (1) day to twenty (20) years, and a fine of PHP 1,000,000.00 at the discretion of the court, without prejudice to criminal prosecution under other laws.
Section 16(f) penalizes violations not covered by the preceding subsections by imposing imprisonment of not less than six (6) months and one (1) day to six (6) years, or a fine of PHP 1,000,000.00, or both, at the discretion of the court, and cancellation or suspension of the license with forfeiture of the bond, without prejudice to criminal prosecution under other laws.
Section 16 provides that when the offender is a juridical entity, penalties are imposed on the officer or officers of the juridical entity who participated in the decision that led to the violation, without prejudice to cancellation of their license issued by the PNP.

Implementing rules, separability, repeals, effectivity

Section 17 directs the PNP, in consultation with stakeholders and other private security associations, representatives of private security cooperatives, and other security industry stakeholders, and subject to existing laws, to promulgate implementing rules and regulations necessary to implement the Act within ninety (90) days from effectivity.
Section 17 requires consultation with stakeholders prior to issuance of all PNP regulations and issuances related to and affecting the private security services industry.
Section 17 mandates that the PNP review the IRR every three (3) years.
Section 18 establishes a separability rule: if any part or provision is declared unconstitutional, the remainder remains in force.
Section 19 repeals Republic Act No. 5487 for the purpose of strengthening the regulation of the private security services industry, and repeals or modifies all other laws, presidential decrees or issuances, executive orders, letters of instruction, rules, regulations, and administrative orders inconsistent with the Act.
Section 20 establishes the effectivity rule: the Act takes effect fifteen (15) days after complete publication in the Official Gazette or in a newspaper of general circulation.