1. REFERENCES:

a. 2003 Revised Rules and Regulations Implementing RA 5487, as amended;
b. SOP No. 05-03, dated 12 March 2003; and
c. RA 6975, as amended.

2. AUTHORITY:

Pronouncement of Director General AVELINO I. RAZON, JR. former Chief, PNP, on August 28, 2008 during the 4th PADPAO Convention and Golden Anniversary in Cebu City, in accordance with Section 17, RA 5487, as amended.

3. PURPOSE:

This Memorandum Circular prescribes the policy guidelines and procedures in implementing the conversion of the current Two-Year LTO Renewal Cycle to Five-Year Renewal Cycle with Options, thru which the regular LTO applicants may choose from based on their capability to manage, conduct and operate a PSA/PDA, and encompassing the following major goals:

a. To allow owners/managers/authorized officers or licensees to choose what options are suitable, feasible and acceptable to their styles of management and financial capabilities in order to meet the regulatory requirements for the renewal of regular license and the continued operations of their security services;

b. To identify regulatory measures, ways and means to regulate the operations of PSAs/PDAs based on the options chosen; and

c. To foster PNP-PADPAO continuing coordination/consultation on matters pertaining to the well-being of the private security industry.

4. SCOPE/APPLICATION:

The Five-Year LTO Renewal Cycle has to be applied to all PSAs/PDAs with regular LTOs, particularly in the selection of renewal options. These policy guidelines and procedures serve as basis for identifying regulatory measures that will review the business operations of PSAs/PDAs for purposes of issuance of regular license, records keeping and other regulatory requirements.

5. RATIONALE:

As a regulatory body, the Philippine National Police (PNP), thru the Civil Security Group-Security Agencies and Guards Supervision Division (CSG-SAGSD) and in consultation with PADPAO, introduces the applicants for renewal of regular LTOs to available Options in which they can pursue, in better management, conduct and operations and with focus, one particular renewal cycle suited to their ability to manage existing and potential internal/external liabilities. It thus encourages all PSAs/PDAs to strive towards a more competitive and healthy environment for the private security industry.

6. POLICY GUIDELINES FOR THE 5-YEAR CYCLE WITH OPTIONS:

a. License to Operate has a regulatory dimension and reflects a set of rights and obligations.

b. All owners/managers/authorized officers/authorized representatives or licensees of PSAs/PDAs with regular LTOs shall be allowed to choose among the options available: two-year cycle; three-year cycle; four-year cycle; or five-year cycle. These options become available to them only upon expiration of their regular LTOs.

c. Once an option is chosen and applied for, and the corresponding license is approved/issued, the license cannot be changed during the years it is in effect.

d. Annual, interim and final reports on the management, conduct and operations of PSAs/PDAs shall be required.

e. The current annual rate of national license and registration fees and penalties shall apply and the licensee will be charged such fees equivalent to the number of years the license is in effect.

f. New or Temporary LTO, unless earlier revoked/cancelled/suspended, remains to have a life of or valid for two (2) years.

7. PROCEDURES FOR RENEWAL OF REGULAR LTO:

Subject to the relevant provisions of the 2003 Revised Rules and Regulations Implementing RA 5487, as amended, particularly Sec. 8a & c, Sec. 9, Sec 10b, and Sec. 11 of Rule IV (License to Operate), the following must comply with the following procedures:

a. The PSA/PDA at the time of filing of application:

a.1. Must write and submit a letter request, dated and signed by the owner/manager/authorized officer/authorized representative or licensee, and, if applicable, Secretary’s Certificate and Board Resolution confirming/ approving the conversion of the current two (2) Year Regular LTO Renewal Cycle into any of the available options: three (3) year, four (4) year or five (5) year cycle;

a.2. Must execute and submit an affidavit of undertaking that owner/manager/authorized officer/authorized representative or licensee shall comply with the reportorial requirements based on the chose option;

a.3. Should pay the cumulative national license and registration fees and penalties based on the current annual rate and chosen option; and

Hereunder is the schedule of submission of reportorial requirements:

OPTION	DOCUMENTS NEEDED	DATE OF SUBMISSION
Option 1	Annual Report	Within December of every year.
(Two-year cycle)
	Two-Year Final Report	At the time of filing of application based on the expiry date.
Option 2	Annual Report	Within December of every year.
(Three-year cycle)
	Three-Year Final Report	At the time of filing of application based on the expiry date.
Option 3	Annual report	Within December of every year.
(Four-year cycle)
	Two-Year Interim Report	After the 2nd year of operation and within the month after the anniversary month of LTO.
	Four-Year Final Report	At the time of filing of application based on the expiry date.
Option 4	Annual Report	Within December of every year.
(Five-year cycle)
	Three-Year Interim Report	After the 3rd year of operation and within the month after the anniversary month of LTO.
	Five-Year Final Report	At the time of filing of application based on the expiry date.

9. EFFECTIVITY:

This Memorandum shall take effect fifteen (15) days from the filing of a copy hereof at the University of the Philippines Law Center in consonance with Sections 3 and 4, Chapter 2 Book VII, E.O. 292, otherwise known as “Revised Administrative Code of 1987”, as amended.

Adopted: 03 March 2009

(SGD.) JESUS A VERZOSA, CEO VI
Police Director General
Chief, PNP