REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
QUEZON CITY

‘TWENTIETH CONGRESS
First Regular Session

House Bill No, 269 _

Introduced by Representative SHIRLYN L. BANAS-NOGRALES

EXPLANATORY NOTE

This Bill seeks to create the General Santos International Airport Authority, a corporate
body with full authority to manage and operate the General Santos City Airport complex,
situated on 599 hectares of public land under Presidential Proclamation No. 219. Strategically
located as a gateway to the BIMP-EAGA, the airport will be positioned as a premier world-class
hub for trade, tourism, and logistics. We envision an integrated complex with facilities for
aircraft maintenance, cold storage for regional produce, industrial zones, hospitality services, and
ultimately, a full-scale aerotropolis.

While we take pride that our airport has the third-longest airstrip in the country after
Ninoy Aquino International Airport and Mactan-Cebu International Airport, its endowed
capabilities now remain unexploited to the fullest. Authoritative studies suggest more promising
trade, commerce, industry, and tourism potentials of General Santos City Airport besides the
usual doing of business, as mandated by the law, of regulating passenger and cargo traffic and
aviation,

Given the unharnessed potentials of the General Santos City Airport and the complexity
of the work left to be done, the creation of an authority specifically tasked to do the job cannot be
overemphasized

In view of the foregoing, immediate approval of this Bill is earnestly sought.

SHIRLYN L. BANAS-NOGRALES


REPUBLIC OF THE PHILIPPINES,
HOUSE OF REPRESENTATIVES
QUEZON CITY

TWENTIETH CONGRESS
First Regular Session

House Bill No. 269

Introduced by Representative SHIRLYN L_ BANAS-NOGRALES

AN ACT
CREATING THE GENERAL SANTOS CITY INTERNATIONAL AIRPORT
AUTHORITY, TRANSFERRING EXISTING ASSETS OF THE GENERAL SANTOS,
AIRPORT TO THE AUTHORITY, VESTING THE AUTHORITY WITH POWERS TO
ADMINISTER AND OPERATE THE GENERAL SANTOS CITY INTERNATIONAL
AIRPORT, AND APPROPRIATING FUNDS THEREFOR

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

ARTICLE 1
General Provisions
SECTION 1. Short Title. This Act shall be known as the “Charter of the General

Santos City International Airport Authority”.

SEC. 2. Coverage. - This Act shall apply to all persons, entities and other political
subdivisions as may be referred or connected with this Act and, to the extent herein provided, to
officials, offices and other departments, bureaus, instrumentalities and other agencies of the

national government and local government unit.

SEC. 3. Construction and Interpretation. ~ This Act shall be construed and interpreted
in the light of the State policy to promote integrity, accountability and proper management of
public affairs and public property. Any doubt shall be resolved thereupon by taking into account
good, effective and established practices and standards for government-owned or controlled

corporations (GOCCs),

ARTICLE I
The Authority

4. Creation of the General Santos City International Airport Authority. — There is
hereby established a body corporate to be known as the General Santos City International Airport


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Authority, hereinafter referred to as the “Authority”, which shall be attached to the Department
of Transportation (DOTr)

The Authority shall hold principal office and conduct official business at a designated
area located within the airport complex of the General Santos City International Airport
(GSCIA). The Authority may operate such branches, agencies or subsidiaries to be located

outside of the airport complex, as it may deem proper and necessary.

SEC. 5. Objectives. - The Authority shall principally undertake the economical, efficient
and effective control, management, and supervision of the GSCIA in the City of General Santos.
In addition, the Authority shall have the following objectives:

(a) Encourage, promote, and develop intemational and domestic air traffic in the
SOCCSKSARGEN Region as a means of making the region a center of international
trade and tourism and in accelerating the development of the means of transportation
and communications around the country; and

(b) Upgrade the services and facilities of GSCIA and formulate internationally acceptable
standards of airport accommodation and service.

SEC. 6. Duties and Functions. — The Authority shall exercise the following duties and

functions:

(a) Succeed in its corporate name; sue and be sued in such corporate name; adopt, alter
and use a corporate seal; and adopt, amend or repeal its own by-laws, rules or
regulations;

(b) Formulate a comprehensive and integrated development policy and program for
GSCIA and implement, review, and update periodically such policy and program;

(c) Control, supervise, construct, maintain, operate, and provide such facilities or
services as shall be necessary for the efficient functioning of GSCIA and compliant
with the International Civil Aviation Organization (ICAO) standards;

(a) Promulgate rules and regulations governing the planning, development, maintenance,
operation and improvement of GSCIA and control and supervise the construction of
any structure or the rendition of any service located or conducted within the GSCIA;

(e) Exercise all the powers of a corporation under Batas Pambansa Bldg. 68, otherwise
known as “The Corporation Code of the Philippines”, as amended by Republic Act
No. 11232, insofar as those powers are not inconsistent with the provisions of this
Act;

(£) Acquire, purchase, own, administer, lease, mortgage, sell, or otherwise dispose of any
land, building, airport facility or property of whatever kind and nature, whether


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movable or immovable, or any interest therein: Provided, That any asset established
and located within the premises of GSCIA which is important to national security
shall not be subject to alienation, mortgage, or transfer to any entity other than the
national government,

(g) To enter into, make, perform, and carry out contracts of every class, kind and
description which are necessary or incidental to the realization of its purposes with
any person, firm, or corporation, private or public, and with foreign government
entities;

(h) Exercise the power of eminent domain in the pursuit of its purposes and objectives;

(i) Levy and collect dues, charges, fees, and assessments for the use of airport premises,
works, appliances, facilities, or concessions, or for any service provided by the
Authority;

(j) Receive donations, grants, bequeaths, and assistance of all kinds from local and
foreign governments and private sectors and utilize the same;

(k) Retain and appropriate dues, fees, and charges collected by the Authority relative to
the use of airport premises for such measures as may be necessary to make the
‘Authority more effective and efficient in the discharge of its assigned tasks;

(1) Invest its idle funds, as it may deem proper or necessary, in government securities or
other forms of business ventures: Provided, That this shall be concurred in by two-
thirds (2/3) votes of all the members of the Authority’s Board of Directors; and

(m)Provide such services, whether on its own or otherwise, within the GSCIA and the
approaches thereof as may be necessary or in connection with the maintenance and

operation of the airport grounds or facilities.

SEC. 7. Police Authority. - The Authority shall exercise police authority as may be
necessary within its premises or areas of operation to carry out its functions and attain its
purposes and objectives: Provided, That the Authority may request the assistance of law
enforcement agencies, including request for deputations as may be required. Such police
authority shall be exercised in connection with the following, among others:

(a) Maintenance of security to passengers, cargoes, aircraft, airport equipment, structures,

facilities, personnel, funds and documents;

(b) Regulation of the entry to, exit from, and movement within the airport grounds;

(©) Maintenance of peace and order within the premises of GSCIA, in coordination with

local police authorities and other authorized peace-keeping entitles within the airport;

(d) Regulation and supervision of private security agencies operating inside GSCIA;

(©) Enforcement of rules and regulations promulgated by the Authority pursuant to law;

or


(f) In case of such emergencies or imminent danger involving national security or public
health within the airport premises, the Philippine Air Force Security Command in
close coordination with the Department of Health (DOH) or other appropriate
departments of agencies of government, shall take charge.

ARTICLE II
The Board of Directors

SEC. 8. Board of Directors. ~ The corporate powers of the Authority shall be exercised
by and vested in the Board of Directors which shall be composed of a Chairperson, a Vice-
Chairperson, and eleven (11) members, as follows:

(a) Secretary of the DOTr, as ex officio Chairperson;

(b) General Manager of the Authority, as ex officio Vice Chairperson;

(c) Director General of the Civil Aviation Authority of the Philippines (CAAP) or the

duly appointed representative thereof, as ex officio member;

(a) Secretaries of the Department of Finance (DOF), Department of Agriculture (DA),
and Department of Tourism (DOT) or their designated Undersecretary or Assistant
Secretary, as ex officio members,

(e) Local Chief Executive of the City of General Santos, as ex officio member;

(f) Four (4) members from the private sector who are residents of the City of General
Santos for at least five (5) years, of good moral character, of unquestionable
imegrity, and of recognized competence in relevant fields, such as agribusiness,
tourism, export and logistics, and hospitality.

The private sector representatives shall be appointed by the President of the Philippines
in accordance with the pertinent provisions of Republic Act No. 10149, otherwise known as the
“GOCC Governance Act of 2011”. For this purpose, the Local Chief Executive of the City of
General Santos shall submit to the Governance Commission for GOCCs (GCG) fifteen (15)
candidates for appointment pursuant to the preceding provision. The GCG shall, thereafter,
endorse to the President of the Philippines seven (7) qualified candidates.

SEC. 9. Internal Rules of Procedure. ~ On the first regular session following its
constitution and within thirty (30) days thereafter, the Board shall adopt and promulgate its rules
of procedure relative to meetings, quorum requirements and matters relative to compensation and

allowances of its members.

SEC. 10. Functions of the Board. - The Board shall exercise the following functions:

(a) Define and approve all programs, plans, policies, procedures, guidelines, rules and
regulations to be promulgated by the Authority for the operation, maintenance, and
development of GSCIA pursuant to Section 6(d) of this Act;


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(b) Concur on all contracts to be entered into by the Authority in the pursuit of its duties
and functions, as provided for under Section 6 of this Act;

(c) Appoint the General Manager of the Authority who shall be the Chief Executive
Officer of the Authority and Vice Chairperson of the Board;

(@) Approve the Authority’s organizational and administrative structure, staffing pattem,
operating and capital expenditures, and financial budget upon the recommendation of
the General Manager, subject to the final approval of the GCG;

(e) Upon recommendation of the GCG, approve salary ranges, benefits and other terms
and conditions of service for all officials and employees of the Authority which shall,
‘as far as practicable, be competitive with those offered in the private sector
corporations or institutions, subject further to the approval of the President of the
Philippines;

(®) Fix the rate of dues, charges, fees or assessments for the use of airport premises,
works, appliances, facilities, concessions, services and other fees and charges related

to the activities of the airport upon recommendation of the General Manager, and
(g) Exercise all the functions and powers necessary or incidental to attain the purposes

and objectives of this Act.

ARTICLE IV
The General Manager

SEC. 11. Qualifications and Appointment of the General Manager. -

(a) The Authority shall be headed by a career official with the title of General Manager
with a corresponding salary equal to that of a regional director of a department of the
national government;

(b) No person shall be appointed General Manager unless one is a natural-born citizen of
the Philippines, of good moral character, holds a master’s degree in relevant fields
including public administration, business management, social or health sciences,
economics, national security administration or defense, architecture, engineering,
preferably naval or aeronautical, a graduate of a reputable college or university, a
Career Service Professional eligible or its equivalent and must have obtained at least
ten (10) years of supervisory or managerial work experience in any government or
private institution;

(c) The GCG shall be responsible in posting, accepting, validating, and shortlisting
applicants to the position of General Manager, taking into account established civil
service rules and procedures on recruitment and selection vis-a-vis the “fit and proper

rule”;
(4) Within ninety (90) days after its organization, the Board shall appoint the General
Manager from among the five (5) shortlisted applicants provided by the GCG; and


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(e) The GCG shall forward said Board Resolution to the Civil Service Commission
(CSC) for attestation and issuance of corresponding Certificate of Appointment and
other necessary documentation processes pursuant to Civil Service rules and
regulations.

SEC. 12. Duties of the General Manager. — The General Manager shall be directly

responsible to the Board and shall exercise the following duties:

(a) Direct and supervise the day-to-day management, operation and administration of
Authority;

(b) Implement and enforce decisions, orders, rules and regulations issued, prescribed or
adopted by the Board;

(c) Undertake researches, studies, investigations and other activities related to the
operations and future improvement of GSCIA and submit comprehensive reports and
appropriate recommendations to the Board for proper action;

(d) Appoint, transfer, suspend, remove or otherwise discipline any subordinate officer or
employee of the Authority, subject to the approval of the Board and in accordance
with the existing rules and regulations of the CSC;

(c) Within the limits of the authority delegated by the Board, execute contracts, incur
obligations, acquire and dispose of assets and deliver documents on behalf of the
Authority;

(f) Grant permits or concessions to do business within the airport in accordance with
such rules and regulations to be promulgated by the Authority for the purpose; and

(g) Perform such other duties as the Board may delegate or assign, and such acts as may
be necessary or proper to implement this Act.

ARTICLE V
Organization and Management

SEC. 13. Authorized Capital. — The Authority shall have an authorized capital stock

equal to:

(a) The value of fixed assets, including airport facilities, runways and equipment and
such other properties, movable and immovable, currently administered by or
belonging to General Santos Airport, as valued on the date of the effectivity of this
Act;

(b) The value of such real estate owned or administered by the General Santos Airport;
and

(©) Government contribution in such amount as may be deemed an appropriate initial
balance. Such initial amount, as approved by the President of the Philippines, which
shall be more or less equivalent to sixty (60) months working capital requirement of


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the Authority, is hereby authorized to be appropriated in the annual General
Appropriations Act (GAA) of the year following the effectivity of this Act.
(d) Government contribution to the Authority as provided for in the annual GAA.

SEC. 14. Resident Auditor. — The Commission on Audit (COA) shall appoint a
representative who shall be the Auditor of the Authority, together with the necessary personnel
to assist said representative in the performance of their duties. The number and salaries of the
Auditor and COA personnel shall be determined by the Chairperson of the COA, subject to its
rules and regulations.

The Auditor shall, as soon as practicable but not later than three (3) months after the
accounts shall have been submitted for audit, send an annual report to the Board. The Auditor
may also submit such periodic or special reports as the Board may deem necessary.

SEC. 15. Annual Report. — An annual report of the activities and operations of the
Authority, together with the audit report shall be submitted by the Board to the President of the
Philippines and to both houses of the Congress of the Philippines through the DOTr. The report
shall likewise be posted in the Authority’s website.

SEC. 16. Applicability of Civil Service Laws, — The Authority and its officials and
employees shall be subject to the existing Civil Service laws and its rules and regulations,

SEC. 17. Borrowing Power. —

(a) The Authority may, in accordance with Section 21, Article XII of the Philippine
Constitution and other existing laws, rules and regulations on local or foreign
borrowing, raise funds, either from local or international sources, through loans,
credit or securities and other financing instruments with the power to create pledges,
mortgages and other voluntary liens or encumbrances on any of its assets or
properties, subject to the review and approval of the Monetary Board and the DOF;

(b) All loans contracted by the Authority under this Section, together with all interests
and other sums payable in respect thereof, shall constitute a charge upon all the
revenues and assets of the Authority and shall rank equally with one another, but shall
have priority over any other claim or charge on the revenue and assets of the
Authority: Provided, That this provision shall not be construed as a prohibition or
restriction on the power of the Authority to create pledges, mortgages, and other
voluntary liens or encumbrances on any asset or property of the Authority;

(c) The payment of the loans or other indebtedness of the Authority may be guaranteed
by the National Government, subject to the approval of the President of the

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SEC. 18, Tax Exemptions. — The Authority shall be exempt from realty taxes imposed
by the local government or any of its political subdivisions, agencies and instrumentalities:
Provided, That no tax exemption herein granted shall extend to any subsidiary which may be
organized by the Authority.

SEC. 19. Transfer of Existing Facilities and Intangible Assets.

(a) All existing public airport facilities, runways, lands, buildings and other properties
movable or immovable, belonging to or presently administered by General Santos
City International Airport and all assets, powers, rights, interests and privileges
relating to airport works or air operations including all equipment which are
necessary for the operation of air navigation, aerodrome control towers, crash, fire
and rescue facilities are hereby transferred to the Authority: Provided, however, That
the operational control of all equipment necessary for the operation of radio aids to
air navigation, airways communications, the approach control office, and the area
control center shall be retained and managed by the CAAP;

(b) No equipment, however, shall be removed by the CAAP from the GSCIA without the
concurrence of the Authority;

(c) The Authority shall be responsible for the maintenance and repair of all airport assets
and equipment transferred to the Authority by virtue of this Act.

SEC 20. Projects in Progress. — All ongoing projects relating to the construction of
facilities of the General Santos City International Airport shall be continued by the agency or
agencies involved. Upon their completion thereafter, such projects shall be transferred to the
Authority

SEC. 21. Transfer of Liabilities and Debts. -- Upon the transfer to and acceptance by the
Authority of the existing physical facilities, intangible assets, and completed projects referred to
in the proceeding sections, all debts, liabilities and obligations of government agencies or entities
concerned in respect of such physical facilities, tangible assets, and completed projects within
the premises of GSCIA shall likewise be assumed by the Authority.

ARTICLE VI
Standards on Quality Management
SEC. 22. Manual on Corporate Governance, — The Authority shall, consistent with the
pertinent provisions of R.A No. 10149 and in pursuit of its commitment as partner of the national

government towards national development, formulate and implement its Manual on Corporate


Governance, thereby adopting and applying some established and effective norms on good
corporate governance including the following:
(a) Measurable quality objectives consistent with its mandates along with strategic
directions of its mission and vision;
(b) Procedures that provide consistency and predictability of output;
(c) Measures or alternatives that ensure the provision of adequate resources to sustain
service excellence, commitment and accountability;
(@) Principles of continued improvement reinforced by customer satisfaction and quality
management standards;
(e) Steps that promote care, diligence, skills ethics and transparency in the conduct of
business,
(f) Business-related transactions that are consistent with the spirit and intent of Republic
Act No. 11032, otherwise known as the “Ease of Doing Business and Efficient
Government Service Delivery Act”; and
(g) Such other necessary or appropriate guidelines that will help boost GSCIA to become
a premier world-class airport of the Philippines.

SEC. 23. Concurrence by the Board. ~ Such Manual on Corporate Governance shall not
become effective unless concurred by at least two-thirds (2/3) votes of all the members of the
Board. Any revision of the subsisting Manual shall be proposed as often as the Authority may
deem necessary, subject to approval by the Board.

ARTICLE VIL
Corporate Social Respo

ity

SEC. 24. Corporate Social Responsibility (CSR). — Consistent with the pertinent
provisions of R.A. No. 10149 and other applicable laws, rules and regulations, the Authority
shall endeavor to cause the utilization of available resources to help the national government
address the concerns of regional growth and development and in the process, undertake CSR
programs and measures that may help promote the health and well-being of its employees and
their families, contribute towards reinforcing public health awareness and emergency response
capabilities and facilities of General Santos City’s local government unit and its neighboring
communities, reduce stakeholders’ vulnerability or susceptibility to contract infectious diseases,
support community preparedness to other forms of emergencies and natural calamities, and other
related programs.

ARTICLE VII
Final Provisions


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SEC. 25. Site of the GSCIA. - The ownership to a parcel of land of the public domain
under Cotabato Project No. 47-C Block A, Timber Land LC Map No. 1756, reserved as final
airport site under Presidential Proclamation No. 219, dated July 30, 1993, containing an area of
Five million nine hundred ninety-four thousand five hundred seventy-seven (5,994,577) square
meters, is hereby ceded to the Authority. The aforesaid parcel of land shall be devoted
exclusively as site of GSCIA and for the Authority’s aviation, aviation related services,
hospitality and tourism related enterprises, and aviation related logistics activities. The technical
description of the said parcel of land is hereby reiterated and made an integral part of this Act, as
follows:

“A parcel of land beginning at comer 1 on the attached Plan which is S 79 15°W,
6,930.00 m. from BLBM No. 01, GSS 111-D, Makar, General Santos City, thence . . .

$66 deg. 00'E | 65.00 m to comer 2;
DueFast, | 145.00 mtocomer3; |
S 86 deg. 00'E —_| 140,00 m to comer 4;
$34 deg. 00'E | 85.00 m to comer 5;
S68deg.17°E | 1196.00 mto comer 6,
$06 deg. 57°E | 1355.00 m to comer 7,
$20 deg. 00'E | 60,00 m to comer 8;
S16 deg. 00'E | 270,00 mto comer 9,
S16 deg. 00'E | 140,00 m to comer 10;
$09 deg. 00’ W | 265.00 m to comer IT;
S17 deg. 00° W | 160.00 mto comer 12;
S13 deg. 00 W | 190.00 mto comer 13;
S11 deg. 00°W | 250.00 m to comer 14,
$03 deg. 00° W | 240.00 m to comer 15
‘$03 deg. 00'W _| 250.00 m to comer 16;
$03 deg. 00°W _| 240.00 m to comer 17;
$06 deg. 00'W _| 250.00 m to corner 18;
[$06 deg. 00°W | 250.00 mto corner 19;
$05 deg. 00°'W _| 240.00 m to comer 20;
$05 deg. 00'W | 100.00 m to comer 21;
N63 deg. 00'W | 50.00 m to corner 22;
N85 deg. 00'W | 130.00 m to comer 23,
$68 deg. 00’ W | 60.00 m to comer 24

$08 deg. 00’'W | 70.00 mto comer 25;
$66 deg. 00'W | 95.00 m to comer 26;
$75 deg. 00° W | 90.00 m to comer 27;

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N69 deg. 00"W | 40.00 m to corner 28;
$60 deg. 00°W | 85.00 m to comer 29,
S71 deg. 00'W | 85.00 m to comer 30;
S71 deg. 00'W | 60.00 m to comer 31;
$70 deg. 00'W | 80.00 m to comer 32;
$79 deg. 00'W | 60.00 m to corer 33;
$50 deg. 00'W | 110.00 m to comer 34;
N 28 deg. 43'W | 13.64 m to corner 35;
[N06 deg. 57 W | 450.00 m to comer 36, _|
N06 deg. 57° W | 350.00 m to comer 37,
N06 deg. 57 W | 250.00 m to comer 38;
N06 deg. 57 W | 300.00 m to corner 39;
N06 deg. 57 W | 500.00 m to corner 40;
N06 deg. 57 W | 350.00 m to comer 41;
[N06 deg. 57° W | 400.00 m to corner 42;
N06 deg. 57’ W | 350.00 m to corner 43;
N06 deg. 577 W | 195.00 m to comer 44;
[N06 deg. 57° W | 500.00 m to comer 45;
[N06 deg. 57 W 250.00 mo comer 46;
[N06 deg. 57°W | 300.00 mto comer 47; |
| N06 deg 37° W | 430.00 m to comer 48;
440.00 m to point of

beginning containing an area of Five million nine hundred ninety-four thousand five hundred

seventy-seven (5,994,577) square meters.”

SEC. 26. Share of the National and Local Government to Gross Income. — The
provisions of existing laws, rules and regulations to the contrary notwithstanding, no national
and local taxes shall be imposed on registered business enterprises within the GSCIA. In lieu of
all national and local taxes, except real property tax, a five percent (5%) tax on gross income
earned shall be paid by all registered business enterprises which shall be directly remitted as
follows: three percent (3%) to the National Government, and two percent (2%) to the City
‘Treasurer's Office of General Santos City.

SEC. 27. Implementing Rules and Regulations. — Within ninety (90) days after the
passage of this Act, The Board shall, in consultation with the DOTr, CAAP, DOT, DOF, DA

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and General Santos City Mayor’s Office, promulgate the implementing rules and regulations for
the effective implementation of this Act.

SEC. 28. Transitory Provisions. -

(a) The designated Manager of the General Santos Airport shall continue to be in office
and shall perform all powers and functions of the Authority until such time that a new
General Manager of the GSCIA shall have been appointed in accordance with the
provisions of this Act; and

(b) Officials and employees the General Santos City International Airport whose services
are terminated shall, if not eligible for retirement, be paid gratuities equivalent to one
(1) month salary for every year of continuous satisfactory service on the basis of the
highest salary received in addition to other benefits accorded to them by existing

laws.

SEC. 29. Repealing Clause. ~ All laws, executive orders, letters of instruction, rules and
regulations or provisions thereof which are inconsistent with the provisions of this Act are
hereby repealed, amended or modified accordingly.

SEC. 30. Separability Clause. ~ If any provision or part of this Act is declared invalid or
unconstitutional, such parts or provisions not affected thereby shall remain in full force and

effect.

SEC. 31. Effectivity. - This Act shall take effect after fifteen (15) days following the
completion of its publication in the Official Gazette or in a newspaper of general circulation

Approved,

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