HOUSE WF REPRESENTATIVES

RECEIVED
Republic of the Philippines | OATE: 95
‘HOUSE OF REPRESENTATIVES ‘TIME:
Quezon City, Metro Manila | Be
Seventeenth Congress | t
| _ REGISTRATION UNT

First Regular Session,

216

HOUSE BILL NO,

Introduced by Honorable Pedro B, Acharon, Jr.

EXPLANATORY NOTE

‘This bill secks the creation of the General Santos International Airport Authority in General
Santos City,

‘The General Santos Intemational Airport in General Santos City, Province of South Cotabato
is one of the country’s principal airports in Mindanao. It is the perfect gateway for tourists and
investors to the Southern part of the country. All year round, tourists and investors come to General
Santos City because of its historic and exotic spots and business opportunities, The significant growth
in the volume of both domestic and international air traffic in the country particularly in Southem
Mindanao and the accelerated tourism development thrusts of the government necessitates and makes
it imperative to upgrade the country’s international airport facilities to provide world-class standard of
services

In this light the proposed bill seeks to create the General Santos City International Airport
Authority. A body clothed with corporate personality and sufficient powers specifically to manage
and administer the airport, The objective of providing, internationally acceptable standard of airport
‘operations and services can be best achieved by an office specifically tasked! to do the job.

Viewed from the fast track development of Cebu with the establishment of Mactan
International Airport, it is hoped the establishment of the General Santos International Airport
Authority would accelerate further the growth and development of the region and the city’s tourism
industry and the economic and business activities resulting thereto

In view of the foregoing, approval of this bill is eamestly sought.

PEDRO B. ACHARDN, JR.

BILLS AND INDEX SERVICE



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

Sevententh Congress

First Regular Session,

16

HOUSE BILL NO, ~~

Introduced by HONORABLE PEDRO B. ACHARON, JR,

AN ACT

CREATING THE GENERAL SANTOS INTERNATIONAL AIRPORT AUTHORITY TO

ADMINISTER AND OPERATE THE GENERAL SANTOS INTERNATIONAL AIRPORT
AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. Short Title. ~ This Act shall be known and cited as the “Charter of the General
‘Santos International Airport Authority.”

SEC. 2. General Santos International Airport Authority. — There is hereby established a
body corporate to be known as the General Santos Intemational Airport Authority, hereinafter
referred to as “The Authority,” which shall be attached to the Department of Transportation and
Communications. The principal office of the Authority shall be located at the General Santos
Intemational Airport in General Santos City.

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

SEC. 3. Objectives. — The Authority shall principally undertake the economical, efficient and
effective control, management and supervision of the General Santos International Airport in General,
Santos City and such other airports as may be established in the provinces of South Cotabato,
Saranggani, Sultan Kudarat, Cotabato.

In addition, the Authority shall have the following objectives

a) Encourage, promote and develop international and domestic air traffic in Central Mindanao as
‘a means of making the region a center of international trade and tourism, and accelerating the
development of the means of transportation and communications in the country; and

b) Upgrade the services and facilities of the General Santos Intemational Airport and formulate
internationally acceptable standards of sirport accommodation and service.

SEC. 4. Duties and Functions. ~ The Authority shall exercise the following duties and functions
a) Formulate a comprehensive and integrated development policy and program, including
expansion, for the General Santos Intemational Airport and any other airports that it may
operate and implement, review and update such policy and program periodically:


b) Control, supervise, construct, maintain, operate, expand and provide such facilities or
services as shall be necessary for the efficient functioning of the General Santos
International Airport or other airports that would come under its jurisdiction;

©) Promulgate rules and regulations governing the planning, development, maintenance,
operation and improvement of the General Santos International Airport, and control and
supervise the construction of any structure or the rendition of any service within the
General Santos International Airport,

4) Exercise all the powers of a corporation under Batas Pambansa Ble, 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 an land,
building, airport facility, or property of whatever kind and nature, whether movable or
immovable, or any interest therein: Provided, That any asset located in the General
Santos 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,
g) To sue and be sued;

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

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

J) Invest its idle funds, as it may deem proper, in government securities and other evidences,
of indebtedness; and

k) Provide services, whether on its own or otherwise, within the General Santos
International Airport and the approaches thereof as may be necessary or in connection
with the maintenance and operation of the General Santos International Airport und their
respective facilities

SEC. 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 funetions and attain its
purposes and objectives: Provided, hat the Authority may request the assistance of law enforcement
agencies, including request for deputization as may be required. Such police authority shall be
exercised in connection with the following, among others:

a)

»)
°)
d)

Maintenance of security to passengers, cargoes, aircraft, airport equipment, structures,
facilities, personnel, funds and documents,

Regulation of the entry to, exists from and movement within the airports;

Maintenance of peace and order within the premises of the General Santos International
Airport,

Regulation and supervision of private security agencies operating in the General Santos
International Airport:


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

1) In case of emergencies or imminent danger involving national security within the airport
premises, the Philippine Air Force Security Command shall take charge.

SEC. 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 Communications 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 Air Transportation Office and the Secretaries of the following
executive departments or any Undersecretary or Assistant Seorctary designated by the respective
Secretaries shall be ex officio members, to wit: Department of Finance, Department of Justice and
Department of Tourism. In addition, four (4) members from the private sector who are residents of
General Santos City or the Province of South Cotabato shall be appointed by the President of the
Philippines for a term of four (4) years, The Mayor of General Santos City or his duly authorized
representative shall be the ninth member.

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

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 General Santos International Airport,

b) Appoint the General Manager of the Authority who s!
Authority;

ll be the chief executive officer of the

©) 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;

4) Approve salary ranges, benefits and other terms and conditions of 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,

©) 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

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

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

) Direct and supervise the day-to-day management, operation and administration of the General
Santos Intemational Airport,

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


©) Undertake researches, studies, investigations and other activities related to the present operations
and future improvement of the General Santos International Airport, and submit comprehensive
reports and appropriate recommendations to the Board for proper action;

4) 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,

©) Within 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,

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

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

SEC, 9. Authorized Capital. ~ The Authority shall have an authorized capital stock equal to:
8) 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 General Santos
International 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 International 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 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.

SEC, 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 for his duties. The number and salaries of the auditor and said
personnel shall be determined by the chairman of the Commission on Audit, subject to the rules and
regulations of the Commission on Audit.

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

SEC. 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 Houses of Congress of the Philippines through the Department of Transportation and
Communications

SEC. 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

SEC. 13. Borrowing Power. ~ The Authority may, in accordance with Section 21, Article XIL
of the Constitution and other existing laws, rules and regulations on local of foreign borrowing, raise
funds, either from local or international sources, by way of loans, credit of securities, and other

5


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

Alll 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 end 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
a a prohibition or restriction on the power of the Authority to create pledges, morteages 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,

SEC, 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.

SEC. 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 General Santos 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, rash, fire, and rescue
facilities are hereby transferred to the Authority: Provided, however, That the operational control of
all equipment necessary for the operation or 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 General Santos
International Airport without the concurrence of the Authority. The Authority may assist in the
maintenance of the Air Transportation Office equipment.

SEC. 16, Projects in Progress. ~ All ongoing projects relating to the construction of General

Santos Intemational Airport facilities and supply of equipment shall be administered and undertaken
by the Authority,

SEC, 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 ot entities concemed
in respect of such physical facilities, tangible assets and completed projects within the General Santos
International Airport shall likewise be assumed by the Authority

SEC. 18, Transitory Provision. ~ The General Manager of the General Santos International
Airport shall continue in office and shall perform all powers and funetions 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.

SEC. 19. Repealing Clause. ~ All laws, executive orders, letters of instructions, rules and
regulations, or provisions thereof which are inconsistent with the provisions of this Act are hereby
repealed, amended or modified accordingly.

SEC. 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.


SEC. 21. Bffectivity. ~ This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation,

Approved,