FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 3201 
'12 
MY 15 [)1 :11 
,,:-(0)'' 
Introduced by Senator Ferdinand R. Marcos, Jr. 
EXPLANATORY NOTE 
The Laoag International Airport in Laoag City, Province of lIocos Norte is the only 
international airport in Northern Luzon. Its nearest international airport is the Diosdado 
Macapagal International Airport in the Province of Pampanga with a distance of four 
hundred (400) kilometers. 
With the renewed thrusts of the government to promote tourism in the country, as 
well as the invigoration of economic activity in every region, it is imperative that the 
efforts be complimented by the development of our airports. 
The Laoag International Airport's strategic location and proximity to China, 
Taiwan, Japan and South Korea shadow its potentials as a perfect gateway of tourist, 
as well as an international cargo hub, in the northern part of the country. In fact, it now 
caters to chartered flights from China and Taiwan which brings tourists into the Ilocos 
region. To maximize its potentials, there is a need to upgrade its facilities to provide a 
world-class standard of service which is a key component in the promotion and growth 
of air traffic in the country. 
The creation of the Laoag International Airport Authority, a body clothed with the 
corporate personality and sufficient powers to manage and administer the airport, will 
accelerate the development of the airport into a world-class standard and consequently 
brings progress and development in the region. 
Thus, the early passage of this bill is earnestly requested. 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
) 
) 
) 
SENATE 
Senate Bill No. 3201 
"t? M"y';t; 
;).0 '11 
,{" 
1\ 
: J 
I"· 
-,\,~ 
'-t--
Introduced by Senator Ferdinand R. Marcos, Jr. 
AN ACT 
CREATING THE LAOAG INTERNATIONAL AIRPORT AUTHORITY, 
TRANSFERRING EXISTING ASSETS OF THE LAOAG INTERNATIONAL AIRPORT 
TO THE AUTHORITY, VESTING THE AUTHORITY WITH POWER TO ADMINISTER 
AND OPERATE THE LAOAG INTERNATIONAL AIRPORT, 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress Assembled: 
SECTION 1. This Act shall be known and cited as the "Charier of the Laoag 
International Airpori Authority." 
SECTION 2. Creation of the Laoag International Airpori Authority. - There is 
hereby established a body corporate to be known as the Laoag International Airport 
Authority, hereinafter referred to as the Authority which shall be attached to the 
Department of Transportation and Communications (DOTC). The prinCipal office of the 
Authority shall be located at the Laoag International Airport, Province of Ilocos Norte. 
The Authority may have such branches, agencies or subsidiaries as it may deem 
proper and necessary. 
SECTION 3. Primary Purposes and Objectives. -
The Authority shall 
principally undertake the economical, efficient and effective control, management and 
supervision of the Laoag International Airport in the Province of 1I0cos Norte, hereinafter 
referred to as the Airport. In addition, it shall have the following objectives: 
(a) To encourage, promote and develop international and domestic air traffic in 
the 1I0cos and the Northern Luzon regions as means of making the region a 
2 


center of international trade and tourism, and accelerating the development of 
the means of transportation and communications in the country; and 
(b) To upgrade the services and facilities of the airports and to formulate 
internationally acceptable standards of airport communication and service. 
SECTION 4. Functions, Powers and Duties. - The Authority shall have the 
following functions, powers and duties: 
(a) To formulate a comprehensive and integrated development policy and 
program for the airport and to implement, review and update such policy and 
program periodically; 
(b) To control, supervise, construct, maintain, operate and provide such facilities 
or services as shall be necessary for the efficient functioning of the Airport; 
(c) To promulgate rules and regUlations governing the planning, development, 
maintenance, operation and improvement of the airport, and to control and 
supervise the construction of any structure or the rendition of any service 
within the airport; 
(d) To exercise all the powers of a corporation under the Batas Pambansa Big. 
68 otherwise known as the Corporation Code of the Philippines, insofar as 
those powers are inconsistent with the provisions of this Act; 
(e) To acquire, purchase, own, administer, leases, mortgage, sell or otherwise 
dispose of any 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 Laoag 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; 
(f) To exercise the power of eminent domain in the pursuit of its purposes and 
objectives; 
(g) To 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; 
3 


(h) To 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; 
(i) To invest its idle funds, as it may deem proper, in government securities and 
other evidences of indebtedness; and 
U) To provide services, whether on its own or otherwise, within the airport and 
the approaches thereof as may be necessary or in connection with the 
maintenance and operation of the airport and its facilities. 
SECTION 5. Policy 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 law enforcement agencies, including request 
and deputization 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) Regulating the entry to, exit from and movement within the airport; 
(c) Maintenance of peace and order within the premises of the Authority; 
(d) Regulation and supervision of private security agencies operating in the 
airport; 
(e) 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 airport premise, the Philippine Air Force Security Commands shall take 
charge. 
SECTION 6. Board of Directors. - The corporate powers of the Authority shall 
be exercised and vested in a Board of eleven (11) members, which shall be composed 
4 


of a chairman, 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 secretary designated by the respective secretaries shall 
be ex officio members, to wit: the Department of Finance (DO F), the Department of 
Justice (DOJ) and the Department of Tourism (DOT). In addition, four (4) members from 
the private sector recommended by the governor of the Province of lIocos Norte shall be 
appointed by the President of the Philippines for a term of four (4) years. The governor 
of the Province of lIocos Norte or his/her duly authorized representatives shall be the 
ninth (9th) 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, Powers and Duties of the Board. - In addition to the 
power vested in the Board under the other sections of this Act, the Board shall have the 
following functions, powers and duties: 
(a) To define and approve the program, plans, policies, procedures and 
guidelines of the Authority for the development and operation of the airports; 
(b) To appoint the General Manager of the Authority who shall be the Chief 
Executive Officer of the Authority; 
(c) To approve the Authority's organizational and administrative structure, 
staffing pattern, operating and capital expenditures, and financial budgets, 
upon the recommendation of the General Manager, subject to existing laws, 
rules and regulations; 
(d) To approve the 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; 
(e) To fix the rate of dues, charges, fees or assessments for the use of airport 
premises, works, appliances, facilities, concessions, services and other fees 
5 


and charges related to the activities of the airports, upon recommendation of 
the General Manager; and 
(f) Generally, to exercise all the functions and powers necessary or incidental to 
attain the purposes and objectives of this Act. 
SECTION 8. Functions, Powers and Duties of the General Manager. - The 
General Manager shall be directly responsible to the Board and shall have the following 
functions, powers and duties: 
(a) To direct and supervise the day-to-day management, operation and 
administration of the airport; 
(b) To implement and enforce decisions, orders, rules and regulations issued, 
prescribed or adopted by the Board; 
(c) To undertake researches, studies, investigations and other activities related to 
the present operations and future improvement of the airports, and to submit 
comprehensive reports and appropriate recommendations to the Board for 
proper action; 
(d) To appoint, transfer, suspend, remove otherwise discipline any subordinate 
officer or employee of the Authority, subject to approval of the Board an in 
accordance with the existing rules and regulations of the Civil Service 
Commission; 
(e) Within the limits of the authority delegated to him by the Board, to execute 
contracts, incur obligations, acquire and dispose of assets, and deliver 
documents on behalf of the Authority; 
(f) To 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) To perform such other duties as the Board may delegate or assign, and such 
acts as may be necessary and proper to implement this Act. 
6 


SECTION 9. Capital. - The Authority shall have an authorized capital stock equal 
to and consisting of: 
(a) The value of fixed assets including airport facilities, runaways and equipment 
and such other properties, movable and immovable, currently administered by 
or belonging to the airport as valued on the date of the effectivity of this Act; 
(b) The value of such real estate owned/or administered by the airport; and 
(c) The 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 General Appropriations Act (GM) of the year following its 
enactment into law. 
Thereafter, the government contribution to the capital of the Authority shall be 
provided for in the General Appropriations Act (GM). 
SECTION 10. 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 the rules and regulations of the Commission on Audit (COA). 
The Auditor shall, as soon as practicable, but not later than three (3) months after 
the accounted 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. - The Board shall submit to the President of the 
Philippines through the Department of Transportation and Communications (DOTC) and 
to both Houses of the Congress of the Philippines, together with the audit report on the 
relevant accounts, an annual report generally dealing with the activities and operations 
of the Authority. 
7 


SECTION 12. Applicability of Civil Service Law. -
The Authority and its 
officials and employees shall be subject to the Civil Service Law and its rules and 
regulations. 
SECTION 13. Borrowing Power. -
The Authority may, in accordance with 
Section 21, Article XII of the 1987 Philippine 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 borrowing 
instruments with the power to create pledges, mortgages and other voluntary liens or 
encumbrances on any of its assets or properties, subject to 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 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 revenues and assets of the 
Authority: Provided, That this provision shall not be construed as a prohibition or 
restriction on the power of 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 exempted 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 airport facilities, runaways, land, building and other properties, movable or 
immovable, belonging to or presently administered by the Laoag International Airport 
and all assets, powers, rights, interests and other privileges relating to airport works or 
air operations, including all equipment which are necessary for the operation of air 
navigation, aerodrome control towers, crash, fore, 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 
8 


retained by the Air Transportation Office from Laoag without the concurrence of 
Authority. The Authority may assist in the maintenance of the Air Transportation Office 
equipment. 
SECTION 16. Projects in Progress. -
All ongoing projects relating to the 
construction of 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 govemment agencies or entities concerned in respects of such physical 
facilities, tangible assets and completed projects within the airport shall likewise be 
assumed by the Authority. 
SECTION 18. Abolition of the Laoag International Airport as a Division in 
the Air Transportation Office. - The Laoag International Airport as a division of the Air 
Transportation Office is hereby abolished. The Airport General Manager of the Laoag 
International Airport shall continue in office and shall perform all powers and functions of 
the Authority until such time that the General Manager is appointed for the smooth 
transfer of responsibility from the abolished entity to the Authority as well as the 
determination of personnel to be retained: Provided, That all officials and employees 
whose services are terminated shall, if not eligible for retirement, be given gratuities 
equivalent to one (1) month salary received in addition to other benefits accorded to 
them by existing laws. 
SECTION 19. Repealing Clause. -
All laws, executive orders, lelters 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 portion hereof shall be held invalid or 
unconstitutional, such invalidity or unconstitutionally shall not affect other provisions 
which shall remain in full force and effect. 
SECTION 21. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) national newspapers of general circulation. 
Approved, 
9