7. REPR
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Republic of the Philippines = 29 JAN 2018
HOUSE OF THE REPRESENTATIVES buss
Quezon City amt
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SEVENTEENTH CONGRESS Ss
Second Regular Session Cine
House wit No, 7047? _

Introduced by REP. RENE L. RELAMPAGOS
First District, Bohol

EXPLANATORY NOTE

The opening of the Panglao-Bohol International Airport is a much welcome
development in the province of Bohol. This will increase passenger as well as cargo flow and
improve air traffic in the Central Visayas Region as a whole. This will also boost the existing
international airport in Cebu and further accelerate tourism and economic activities in the
area.

The opening of direct flights in Korea in Tagbilaran Airport last year has shown a
steady inflow of Korean visitors in the province and nearby islands. This has shown that with
the opening of the Panglao-Bohol International Airport, Bohol’s strategic location will serve as
a gateway not only for the central but also for the eastern Visayas and northern Mindanao
areas as well.

Compliance with international standards on airport operations is not only important
but is rendered necessary in view of these developments. This is to ensure that our airports
are not only at par but exceeds expectations at the international level.

The proposed bill, hence, aims to create the Panglao-Bohol International Airport
Authority. A body clothed with corporate personality and sufficient powers specifically to
manage and administer the airport. The objective of providing internationally accepted
standards of airport operations and services can be best achieve by an office specifically
tasked to do the job.

For the above considerations, the immediate passage of this bill is earnestly sought.

2


Republic of the Philippines
HOUSE OF THE REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

House Bill No. 7047

Introduced by REP. RENE L. RELAMPAGOS
First District, Bohol

AN ACT
CREATING THE PANGLAO-BOHOL INTERNATIONAL AIRPORT AUTHORITY
TO ADMINISTER AND OPERATE THE PANGLAO-BOHOL INTERNATIONAL
AIRPORT AND APPROPRIATING FUNDS THEREFOR

SECTION 1. Short Title. — This Act shall be known and cited as the “Charter of the
Panglao-Bohol International Airport Authority.”

SECTION 2. Panglao International Airport Authority. — There is hereby
established a body corporate to be known as the Panglao-Bohol International Airport
Authority, hereinafter referred to as “Authority,” which shall be attached to the Department of
Transportation and Communications (DOTr). The principal office of the Authority shall be
located at the Panglao-Bohol International Airport in the municipality of Panglao, province of
Bohol.

The Authority may have such branches, agencies or subsidiaries as it may deem proper
and necessary.

SECTION 3. Objectives. - The Authority shall principally undertake the economical,
efficient and effective control, management and supervision of the Panglao-Bohol
International Airport in the province of Bohol. Specifically, the Authority shall have the
following objectives:

a. Encourage, promote and develop international and domestic air traffic in
Central Visayas Region as a means of making the region a center of
international trade, communications and tourism in the country; and

b. Upgrade the services and facilities of the Panglao-Bohol International Airport
and formulate internationally acceptable standards of airport
accommodations and service.

SECTION 4. Duties and Functions. — The Authority shall exercise the following
duties and functions:

a. Formulate a comprehensive and integrated development policy and program
for the Panglao-Bohol International Airport and implement, review and
update such policy and program periodically;


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SECTION 5. Police Authority. — The Authority shall have the power to exercise
such 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 enforcement agencies, including request for deputization as may be
required. Such police authority shall be exercised in connection with the following, among

others:
a.

b.
c.

|. Control, supervise, construct, maintain, operate and provide such facilities or

services as shall be necessary for the efficient functioning of the Panglao-
Bohol International Airport;

Promulgate rules and regulations governing the planning, development,
maintenance, operation and improvement of the  Panglao-Bohol
International Airport, and control and supervise the construction of any
structure or the rendition of any service within the Panglao-Bohol
International Airport;

Exercise all the powers of a corporation under Batas Pambansa Blg. 68,
otherwise known as the “Corporation Code of the Philippines,” 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 of
nature, whether movable or immovable, or any interest therein: Provided,
That any asset located in the Panglao-Bohol International Airport important
to national security shall not be subject to alienation or mortgage by the
Authority nor to transfer to any entity other than the National Government;
Exercise the power of eminent domain in the pursuit of its purposes and
objectives;

To sue and be sued;

. Levy and collect dues, charges, fees or assessments for the use of airport

premises, works, appliances, facilities or concessions, or for any service
provided by the Authority;

. 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;

|. Invest its idle funds, as it may deem proper, in government securities and

other evidences of indebtedness; and

Provide services, whether on its own otherwise, within the Panglao-Bohol
International Airport and approaches thereof as may be necessary or in
connection with maintenance and operation of the Panglao-Bohol
International Airport and its respective facilities.

Maintenance of security to passengers, cargoes, aircraft, airport
equipment, structures, facilities, personnel, funds and documents;
Regulation of the entry to, exits from and movement within the airports;
Maintenance of peace and order within the premises of the Panglao-Bohol
International Airport;

Regulation and supervision of private security agencies operating in the
Panglao-Bohol International Airport;

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


f. In case of emergencies or imminent danger involving national security
within the premises, the Philippine Airforce Security Command shall take
charge.

SECTION 6. 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 Chairman, a
Vice Chairman and nine (9) Members. The Secretary of Transportation and the General
Manager of the Authority shall be the ex officio Chairman and Vice-Chairman of the Board,
respectively.

‘The Assistant Secretary of the Airport Transportation Office and the Secretaries of the
following executive departments or any Undersecretary or Assistant Secretary designated by
the respective Secretaries shall be ex officio members, to wit: Department of Finance,
Department of Justice and Department of Tourism. In addition, three (3) members from the
private sector who are residents of the Province of Bohol shall be appointed by the President
of the Philippines for a term of four (4) years. The Governor of the Province of Bohol or his
duly authorized representative and the Mayor of the Municipality of Panglao shall be the
eighth and the ninth member.

The Board shall promulgate its rules relative to meetings, quorum requirements and
compensation or allowances of the members of the Board.

SECTION 7. Functions of the Board. - The Board shall exercise the following
functions:

a. Define and approve the programs, plans, policies, procedures and guidelines
of the Authority for the development and operation of the Panglao-Bohol
International Airport;

b. Appoint the General Manager of the Authority who shall be the chief
executive officer of the Authority;

¢. Approve the Authority's organizational and administrative structure, staffing
pattern, operating and capital expenditures, and financial budgets, upon
recommendation of the General Manager, subject to existing laws, rules and
regulations;

d. Approve salary ranges, benefits and other terms and conditions of the service
for all officers and employees of the authority, upon recommendation of the
General Manager, which shall, as far as possible, be competitive with those
offered in the private sector, subject to existing laws, rules and regulations.

e. 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 airports, upon recommendation of
the General Manager; and

f. Exercise all the functions and powers necessary or incidental to attain the
purposes and objectives of this Act.

SECTION 8. Duties of the General Manager. - The General Manager shall be
directly responsible to the Board and exercise the following duties:

a. Direct and supervise the day-to-day management, operation and
administration of the Panglao-Bohol International Airport;

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 present operations and the future improvement of the Panglao-Bohol
International Airport, 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 Civil Service
Commission;

e. With the limits of the Authority delegated to him 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 airports 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 and proper to implement this Act.

SECTION 9. 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 the Panglao-Bohol International Airport as valued on the
date of effectivity of this Act;

b) The value of such real estate owned or administered by the Panglao-Bohol
International Airport; and

c) 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 six (6) months working
capital requirement of the Authority, is hereby authorized to be appropriated
in the annual General Appropriations Act of the year following the effectivity
of this Act. Thereafter, the government contribution to the capital of the
Authority shall be provided for in the annual General Appropriations Act.

SECTION 10. Resident Auditor. - The Commission on Audit 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 his/her duties. The number and
salaries of the auditor and said personnel shall be determined by the chairman of the
Commission on Audit, subject to existing auditing rules and regulations.

The auditor shall, as soon as practicable, but not later than three (3) months after the
accounts 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.

SECTION 11. 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 both House of Congress of the Philippines through the Department of
Transportation.

SECTION 12. 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.


SECTION 13. Borrowing Power. — The Authority may, in accordance with Section
21, Article XII of the Constitution and other existing laws, rules and regulations on local or
foreign borrowing, raise funds, either from local or international sources, by way of 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 prior approval of the President of the Philippines.

All loans contracted by the Authority under this section, together with all interests and
other sums payable in respect thereof, 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 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.

‘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 Philippines.

SECTION 14. Tax Exemptions. - The Authority shall be exempt from realty taxes
imposed by the National 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.

SECTION 15. Transfer of Existing Facilities and Intangible Assets. - All
Existing public airport facilities, runways, lands, buildings and other properties, movable or
immovable, belonging to or presently administered by the Panglao-Bohol 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, communication, the approach control office,
and the area control center shall be retained by the Air Transportation Office. No equipment,
however, shall be removed by the Air Transportation Office from Panglao-Bohol International
Airport without the concurrence of the Authority. The Authority may assist in the
maintenance of the Air Transportation Office equipment.

SECTION 16. Project in Progress. — All ongoing projects relating to the
construction of Panglao-Bohol International Airport facilities and supply of equipment shall
be administered and undertaken by the Authority.

SECTION 17. 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 preceding 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 Panglao-Bohol International Airport shall likewise be
assumed by the Authority.

SECTION 18. Transitory Provision. — The General Manager of Panglao-Bohol
International Airport shall continue in office and shall perform all powers and functions of the
Authority until such time as the General Manager is appointed in accordance with the
provisions of this Act. Officials and employees whose services are terminated shall, if not
eligible for retirement, be given 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.

SECTION 19. 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.

SECTION 20. 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.

SECTION 21. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,