Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

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[3 RECEIVED
> ye 04 JUL 2013

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL No, 467 _

Introduced by Honorable Eric D. Singson

EXPLANATORY NOTE

This bill seeks the creation of the locos Sur Upland Development Authority, a
body envisioned to develop, manage, conserve and preserve the fourteen upland
municipalities of the second district of Ilocos Sur, namely, Alilem, Sugpon, Suyo,
Cervantes, Quirino, Sigay, Gregorio del Pilar, San Emilio, Lidlidda, Banayoyo, Salcedo,
Galimuyod, Burgos and Nagbukel. Included in this group are remote barangays of
coastal towns which have been recognized as belonging to the cultural minorities.

llocos Sur is one area in the Philippines today which has great potentials for
development. The province is endowed with rich natural resources, vast marine and
aquatic resources, large area of grazing lands and vast fertile agricultural lands. The
province is also blessed with many scenic landscapes and beaches for tourism
development. The great potential for development of the province can promote higher
productivity, creation of employment opportunities, generation of income, accumulation
of savings and increase in investment for development

However, this development of the province can only go full blast if the upland
municipalities will also be given full attention. Those upland municipalities occupy
roughly about one-third of the land area of the entire Province of llocos Sur. Since their
location is far from the national road and very mountainous, they are less developed
than their counterpart municipalities in the lowland area

It is therefore imperative to create an agency that will directly plan, coordinate
and implement an overall program to maximize the exploration, development and
Proper utilization of the immense natural resources of the upland area, thereby ensuring
the full development and progress of the entire Province of Ilocos Sur.

In view of the foregoing considerations, approval of this bill is highly and
earnestly recommended.

IC D. Sil ON


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _167 7

Introduced by Honorable Erie D. Singson

EXPLANATORY NOTE

This bill seeks the creation of the Ilocos Sur Upland Development Authority, 4
body envisioned to develop, manage, conserve and preserve the fourteen upland
municipalities of the second district of Ilocos Sur, namely, Alilem, Sugpon, Suyo
Cervantes, Quirino, Sigay, Gregorio del Pilar, San Emilio, Lidlidda, Banayoyo, Salcedo,
Galimuyod, Burgos and Nagbukel. Included in this group are remote barangays of
coastal towns which have been recognized as belonging to the cultural minorities

ilocos Sur is one area in the Philippines today which has great potentials for
development. The province is endowed with rich natural resources, vast marine and
aquatic resources, large area of grazing lands and vast fertile agricultural lands. The
province is also blessed with many scenic landscapes and beaches for tourism
development. The great potential for development of the province can promote higher
productivity, creation of employment opportunities, generation of income, accumulation
of savings and increase in investment for development

However, this development of the province can only go full blast if the upland
municipalities will also be given full attention. Those upland municipalities occupy
roughly about one-third of the land area of the entire Province of Ilocos Sur. Since their
location is far from the national road and very mountainous, they are less developed
than their counterpart municipalities in the lowland area

It is therefore imperative to create an agency that will directly plan, coordinate
and implement an overall program to maximize the exploration, development and
proper utilization of the immense natural resources of the upland area, thereby ensuring
the full development and progress of the entire Province of Ilocos Sur.

In view of the foregoing considerations, approval of this bill is highly and
eamestly recommended

IC D. Sil ON


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 167

Introduced by Honorable Eric D. Singson

AN ACT
CREATING THE ILOCOS SUR UPLAND DEVELOPMENT AUTHORITY,
DEFINING ITS POWERS AND FUNCTIONS, AND APPROPRIATING
FUNDS THEREFOR.

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Title. - This Act shall be known as the “Ilocos Sur Upland
Development Authority Act of 2007.”

SEC. 2. Declaration of Policy. — It is hereby declared to be the policy of the
State to foster and accelerate the development of the llocos Sur Upland Area,
hereinafter referred to as the Area; promote overall economic development through
assistance to commercial, industrial, agricultural, mining and other ventures; encourage
local government units, in the spirit of meaningful local autonomy, to generate funds that
will help maximize opportunities for the development of the upland area, in particular
and the nation, in general; facilitate the delivery of basic services and the provision of
public utilities, services and infrastructures to ensure the full development of the nation
and its people and insure the viability and health of the environment amidst progress,
consistent with the concept of sustainable development. To this end, it is recognized
that it is best to create an agency that will directly coordinate, plan and manage an
overall program to maximize the development of the area, thereby ensuring the full
development and progress of the upland area in the Province of Ilocos Sur particularly
in the municipalities of Alilem, Sugpon, Suyo, Cervantes, Quirino, Sigay, Gregorio del
Pilar, San Emilio, Lidlidda, Banayoyo, Salcedo, Galimuyod, Burgos and Nagbukel

SEC. 3. Hocos Sur Upland Development Authority. — For the purpose of
carrying out the above-stated policy, there is hereby created a body to be known as the
llocos Sur Upland Development Authority, hereinafter referred to as the Authority, which
shall be organized within one hundred twenty (120) days after the approval of this Act.
The Authority shall execute the powers and functions herein vested and conferred upon


it in such a manner as will, in its judgment, aid to the fullest possible extent in carrying
‘out the aims and purposes set forth herein.

SEC. 4. Principal Office. - The Authority shall maintain its principal office in the
City of Candon, Province of Ilocos Sur but it may have branch offices in such other
places as are necessary for the proper conduct of its business.

SEC. 5. Supervision. - The Authority shall be under the supervision of the
Office of the President. All policies and programs formulated; all orders, rules and
regulations promulgated; and all appointments made by the Authority, as well as all
transactions subject to its authority and jurisdiction shall be subject to the approval of
the President of the Philippines.

SEC. 6. Territorial Jurisdiction. - The Authority shall cover the fourteen (14)
upland municipalities in the second district of Ilocos Sur, namely, Alilem, Singpon, Suyo,
Cervantes, Quirino, Sigay, Gregorio del Pilar, San Emilio, Lidlidda, Banayoyo, Salcedo,
Galimuyod, Burgos and Nagbukel, including the remote barangays of coastal towns
which have been recognized as belonging to the cultural communities.

SEC. 7. Term. - The Authority shall have a term of twenty-five (25) years from
the effectivity of this Act renewable for the same period.

SEC. 8. Purposes and Objectives. — The Authority shall have the following
purposes and objectives:

1. To gather and collate planning data, research references, statistics, as
well as to consolidate their relevant and essential elements, and on the basis of such
materials, draft a wholistic, rational, systematic, comprehensive plan consisting of the
short, medium and long-term programs for the development of the upland area, after
taking stock and carefully evaluating the present social and economic conditions,
available resources and opportunity costs, problems and difficulties, as well as the
existing national and regional policies and plans for the Area and providing for such
safeguards as are necessary for ecological balance and environmental protection;

a To implement, according to such Plan, the Authority's multi-level and
multi-sectoral programs, particularly, such part of the Plan as will benefit the
preservation and conservation of the ecological system as well as the protection and
advancement of the environmental condition in the Area; to preserve life, protect public
health and safety; and to maximize the utilization of the Area's power potentials, spatial
land, cheap labor and indigenous raw materials for agricultural, industrial and
commercial uses, water resources for fisheries and fishing, unique arts, cultural designs
an scenic landscapes for tourism and recreation; and to induce or engender higher
production, employment, income, savings and investments in the Area for its economic
growth and social progress;


3. Toestablish such economic and social structures as may be necessary for
entrepreneurial mobilization as will provide local traders, craftsmen, farmers, fishermen
and workers access to credit facilities, equipment and machineries, raw materials and
agri-inputs, transportation and communications, storage and drier, skills training and tax
exemptions to fast-track the development of the Area by means of higher productivity in
farming, manufacturing, trading and fishing and stimulate the efficient use of the factors
of production;

4. To identify viable areas which will be given priority industrial and
commercial development as well as their possible sources of financing, whether
domestic or foreign; to encourage their early utilization and development for economic
growth and expansion through government action or by private initiative; and to promote
the use or application of such moder technology, facilities and equipment, methods
and processes as are available for their maximum and economical use;

5. To adopt workable and long-ranged policies for the intensification and
diversification of local products for export; to sustain agricultural, industrial and
commercial development in the Area; to pave the way for the expansion of its domestic
market structure; and to support the intemal growth of income and the accumulation of
savings for local investment;

6. To encourage people's participation in the organization and development of
cooperatives, non-govemmental organizations, neighborhood organizations and other
groups for the development of livelihood projects and for the economic upliftment and
amelioration of the members thereof through entrepreneurship development and the
provision of such technical and financial aids, as may be necessary, to make them self-
supporting, self-sustaining or self-reliant economic entities, especially such sectoral
livelinood projects or income generating activities which are capital-starved but are
otherwise profitable, labor-intensive and are utilizing indigenous local raw materials and
traditional skills, arts and designs to promote the expansion of micro-enterprises in the
Area;

7. To build, operate and maintain, if necessary, power plants or lighting systems
and to generate, sell or distribute electricity to rural or urban communities, local
government units, public or private institutions, electric cooperatives, franchise holders,
subdivision developers and homeowners: Provided, That the Authority shall not engage
in said business activities in areas or places where there are enough supply of
electricity: Provided, further, That in certain communities where existing electricity
supply is grossly inadequate, it shall, for the public interest, engage in said enterprises
upon the consent of the local cooperative officials or the franchise holder therein: And,
Provided, finally, That the Authority shall not collect fees for electrical services nor


impose charges or fines against its beneficiaries except on the basis of rates fixed or
approved by the Energy Regulatory Board (ERB);

8. To build, operate and transfer projects involving the construction of abattoirs,
dams, reservoirs, roads, telephones, transmission lines, transportation systems, and
such other infrastructure projects as are necessary including pipes along the rivers or its
tributaries subject to the approval of the President of the Philippines and upon the
recommendation of the department head concemed;

9. To reclassify lands according to its uses and provide for the zonification of
such lands upon consultation of or in coordination with the Housing and Land Use
Regulatory Board (HLURB): Provided, That it shall encourage the local government
units, private or public institutions to adopt zoning ordinances based on such
reclassification, uses or zonification;

410. To rationalize the uses, or to hold, administer, utilize, encumber or otherwise
deal with public lands and upon request by the Authority and after certification by the
President, to require the Lands Management Bureau (LMB) and Forestry Management
Bureau (FMB) in the Department of Environment and Natural Resources (DENR) and
the Department of Agrarian Reform (DAR) to make available and immediately deliver to
the Authority such public lands in the Area as may be needed for development into
settlement or resettlement sites and for distribution as farmlots or homelots to rural
beneficiaries or for proclamation into "Agro-industrial Development Area," except
forested lands and lands subject to reforestation; and/or to acquire, by purchase or
condemnation in idle lands, whether public or private for the underprivileged, displaced
or homeless citizens; to make available to them decent housing at affordable costs with
appropriate basic services and access to employment opportunities and/or for the
creation, establishment or organization of “growth center” for livelihood projects or
income-generating activities;

41. To pass upon, review or approve plans, programs and projects, prepared
by local government offices/agencies within the Area or to control, regulate and/or issue
licenses, franchises or concessions relating to or for the utilization and development of
the natural resources of the Area or any of the places within its territorial jurisdiction,
subject to such limitations as are provided for by law or the Constitution and to
promulgate such rules and regulations as are necessary for the preservation,
conservation and advancement of the natural resources of the Area, prescribing therein
the form and manner through which their uses or utilization may be authorized,
particularly, its timber, mineral, land, water and fisheries resources, subject to the
approval of the President, and upon recommendation of the Secretary of the DENR and
the DAR: Provided, That applications for licenses, franchises or concessions, when
disapproved by the majority vote of the members of the Board of Directors, may be


appealed from within fifteen (15) days, effective upon receipt of such disapproval, to the
Office of the President: Provided, finally, That a reasonable amount to be fixed by the
Board shall be collected from holders of licenses, franchises or concessions for the
support of reforestation, shedding and water management projects or for the disposal of
wastes, discharges or pollutants which otherwise cause environmental dysfunctions that
affect public health and safety; and

12. To undertake programs, projects or activities and/or to finance the
construction of infrastructure projects such as river flood control, sewerage work, water
supply, irrigation and such related public works as may be required under its
underdevelopment plan or programs including the readjustment, relocation or
restoration of population within the area as may be necessary.

SEC. 9. Corporate Powers. - As a corporate body, the Authority shall exercise
the following specific powers and functions as follows:

1. To succeed in its corporate name with the power of succession;

2. To sue and be sued in such corporate name;

3. To adopt, alter and use a corporate seal, which shall be of judicial notice;

4, To execute the policies, undertake the programs and implement the projects
specified herein or envisioned in Section 8 hereof,

5. To enter into or make contracts of any kind and description to enable it to
discharge its duties and functions and for the attainment of its purposes and objectives;

6. To adopt, amend and repeal its by-laws;

7. To acquire, purchase, lease or hold such personal and real property as it may
deem proper or necessary in the transaction of its business and/or to lease, mortgage,
sale, alienate, encumber such property whichever is convenient;

8. To receive, take, and hold bequest, device, gift or purchase, loan, lease by
any lawful manner, and to manage, administer, either absolutely or in trust for any of its
purposes, any asset, grant or property, real or personal, from foreign or domestic
sources, subject to such limitations as are provided under existing laws and regulations
and to convert such assets, grant or property; invest and re-invest the same under this
provision and deal with and expand its assets and income in such manner as will best
promote its purposes and objectives;

9. To issue, subject to the approval of the Board of Directors, such rules and
regulations for the use of its properties and to impose or collect fees or tolls therefrom
provided that all receipts or revenues derived by the Authority from such fees, tolls and
other charges are automatically appropriated for its own use;

10.To exercise the right of eminent domain through condemnation or
expropriation proceedings in order to accomplish its missions or tasks; and


41.To contract indebtedness or issue bonds whenever it is essential to the
proper transaction of its business or to carry out the corporate affairs of the Authority
subject to the approval of the President of the Philippines and upon the
recommendation of the Secretary of Finance.

SEC. 10. Capital Stock. - The Authority shall have an authorized capital stock
of Two Hundred Million Pesos (P200,000,000.00), the amount of One Hundred Million
Pesos (P100,000,000.00) of which shall be subscribed and paid by the National
Government to be appropriated out of any funds in the National Treasury not otherwise
appropriated: Provided, That at least 25% thereof shall be fully paid: Provided, further,
That Fifty Million Pesos (P50,000,000.00) of such amount shall be subscribed and paid
by the Department of Agriculture (DA): And, Provided, finally, That the remaining Fifty
Million Pesos (P50,000,000.00) shall be subscribed and paid by the private sector until
the entire authorized capital stock of the Authority shall have been fully subscribed and
paid.

The authorized capital stock of Two Hundred Million Pesos (P200,000,000.00)
shall be divided into Two Million (2,000,000) shares of stock with a par value of One
Hundred Pesos (P100.00) per share.

SEC. 11. Authority to Contract Foreign Loans. - The Authority is hereby
authorized to contract loans, credit or indebtedness, in any convertible foreign currency
or capital goods from time to time from foreign governments or any international
financial institution or fund sources subject to existing laws, rules and regulations.

The importation of machineries, equipment, materials, and supplies by the
Authority, paid from the proceeds of any loan, credit or indebtedness incurred under this
Act shall be exempt from all taxes, fees, imposts, other charges and restrictions
imposed by the Republic of the Philippines or any of its agencies and political
subdivisions.

SEC. 12. Tax Exemption. - The Authority shall be exempt from the payment of
income taxes, franchise taxes, realty taxes and all kinds of taxes and licenses to the
National Government, its provinces, cities, municipalities and other government
agencies and instrumentalities: Provided, that its subsidiary corporations shall be
subject to all said taxes five (5) years after their establishment under graduated scale.
Such exemption shall include any tax or fee imposed by the Government on the sale,
purchase or transfer of foreign exchange and all notes, bonds and debentures, and
other obligations issued by the Authority, both as to principal and interests.

SEC. 13. Structure, Staffing and Pay Scale. - The Board shall determine the
organizational structure, staffing pattern, and pay scales of the Authority and the officers
and employees thereof conformably to that of existing government-owned or controlled
corporations and subject to the evaluation or screening by the Civil Service Commission


and the Office of Compensation and Position Classification. The Board may, further,
reorganize said structure, modify such pattern, or alter the same scale and create or
abolish division, sections or units and any of its subsidiaries.

SEC. 14. Merit System. - All officials and employees of the Authority and its
subsidiary corporation shall be selected and appointed on the basis of merit and fitness,
in accordance with a comprehensive and progressive merit system, which shall be
established by the Authority immediately upon its organization. The recruitment,
transfer, promotion and dismissal of its personnel including contractual workers shall be
governed by such merit system.

SEC. 15. Board of Directors. - The corporate powers and functions of the
Authority shall be vested in and exercised by a Board of Directors, hereinafter referred
to as the Board, which shall be composed of nine (9) members to wit

a) Representative, Second District of Ilocos Sur;

b) The Secretary of Agriculture;

c) The Director-General of the National Economic Development Authority;

d) The Secretary of Environment and Natural Resources;

e) The Secretary of Trade and Industry;

f) Administrator, National Electrification Administration;

g) Provincial Governor, Province of Ilocos Sur;

h)  Arrepresentative of the Agricultural Sector, and

i) Arepresentative of Private investors.

Provided, That the representatives of the private investors and the agricultural
sector shall likewise be appointed by the President of the Philippines from among the
list of recommendees to be submitted by the private investors and the agricultural sector
and shall continue as members until the President appoints their successor. The Board
of Directors shall elect annually, from among themselves, a Chairman and a Vice-
Chairman. There shall be a Corporate Secretary who shall be appointed by the Board.

The officials next in rank to the above-mentioned members shall serve as
permanent alternate members and shall attend meetings of the Board in the absence of
their principals and receive the corresponding per diems.

SEC. 16. Quorum. - The presence of a majority of the members of the Board
shall constitute a quorum for the transaction of the business of the Board.

SEC. 17. Meetings. - The Board shall meet preferably at its principal office, at
least, once a month and as frequently as necessary to discharge its duties and
responsibilities. The Board shall be convoked by the Chairman or upon the written
request of, at least, three (3) of its members. Except as otherwise provided for in this
Act, the votes of a majority of the members constituting a quorum shall be sufficient for
the adoption of any rule, resolution, decision or any act of the Board.


SEC. 18. Powers and Functions. - The Board shall have the following powers
and functions:

1 To formulate policies, develop programs, and establish projects and
promulgate rules and regulations to govern the conduct of the affairs of the Authority;

2. To adopt and approve the annual or supplemental budget of the Authority
to cover its financial operation;

3. To appoint and fix the compensation and allowances of all the officers and
employees of the Authority including the Deputy Administrator and Assistant Deputy
Administrator,

4 Upon the majority vote of all members of the Board, to suspend, remove
or otherwise discipline its officers and employees for just cause;

5. To submit an annual report to the President and render such special
reports as may be required or deemed necessary; and

6. To perform such other functions as may be necessary to carry out the
provisions of this Act. Whenever the Board deems it necessary for the Authority to incur
an indebtedness or issue bonds to carry out the provisions of this Act, it shall, by
resolution, so declare and state the purposes for which the projected debt is to be
incurred.

The resolution shall be passed by the affirmative vote of at least a simple
majority of all members of the Board, subject to the approval of the President of the
Philippines, upon the recommendation of the Secretary of Finance, after consultation
with the National Economic and Development Authority and the Monetary Board of the
Bangko Sentral ng Pilipinas.

SEC. 19. Administrator. - The Board shall have an Administrator to be
appointed by the President of the Philippines who shall be the Chief Executive Officer of
the Authority. The Administrator shall serve for a term of four (4) years subject to
renewal upon the recommendation of the Board and at the pleasure of the President.

The Administrator shall be assisted by such Deputy Administrator and Assistant
Deputy Administrator as the Board may authorize and appoint. Their tenure,
qualification and compensation shall be determined and fixed by the Board.

Preferably, the Administrator shall possess, at least, a Masters degree in
Economics or shall have attended an MBA course at a reputable institution of higher
learning for at least two (2) consecutive years. He must also have held for at least five
(5) years an executive or managerial position, and he must be a native of the area and
is an actual resident thereof.

SEC. 20. Duties and Functions of the Administrator. - The Administrator shall
perform the following duties and functions:


1 Submit, for the consideration of the Board, the policies and measures
which he believes to be necessary to carry out the provisions of this Act;

2 Execute and administer the policies and measures approved by the
Board;

3. Direct and supervise the operation and internal administration of the
‘Authority. He may, for efficiency and effectiveness, delegate certain administrative
responsibilities to other officers of the Authority subject to the rules and regulations of
the Board;

4, Represent the Authority in all dealings with other offices, agencies and
instrumentalities of the government with all other persons, entities or enterprises,
whether public or private, domestic or foreign;

5. Sign contracts entered into or concluded by the Board, and such other
correspondence and documents of the Authority;

6. _ Represent the Authority, either personally or through counsel, in any legal
action or proceedings; and

+ Exercise such other duties or functions as may be granted to him by the
Board.

SEC. 21. Departments. - There shall be created within the Authority the
Following service departments: Administration, Operation, Finance and Management,
Planning and Programming, Legal, Auditing and such other department, division,
section or unit as the Board may deem necessary to carry out its powers and functions.
The tenure, qualification and compensation of the personnel of these departments or
any of its units shall be determined and fixed by the Board.

SEC. 22. Auditing. - The Auditing Department shall be headed by the duly
appointed representative of the Commission on Audit whose salary shall be determined
and paid according to law. All personnel of the auditing department shall be appointed
and their number and salaries fixed by the Commission on Audit

SEC. 23. Appropriations. - The amount of Fifty Million Pesos (P50,000,000.00)
is hereby appropriated for the necessary initial operating expenses of the Authority out
of any fund in the National Treasury not otherwise appropriated. Thereafter, such sum
as may be necessary for the continued operation of the Authority shall be included in
the annual General Appropriations Act.

SEC. 24. Applicability of Corporation Law. - The provisions of the Corporation
Law, as amended, insofar as they are not inconsistent with this Act shall be applicable
to the operations of the Authority.

SEC. 25. Separability Clause. - Should any provisions of this Act be declared
unconstitutional, no other provision shall be affected thereby.


SEC. 26. Repealing Clause. - All laws, decrees, orders, rules and regulations or
parts thereof inconsistent with the provisions of this Act are hereby repealed, amended

or modified accordingly.
SEC. 27. Effectivity. - This Act shall take effect after fifteen (15) days.

Approved,