Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18 ul 2013.
PM

SIXTEENTH CONGRESS
First Regular Session

House Bill No.__ 1563

Introduced by HON. IMELDA ROMUALDEZ-MARCOS

EXPLANATORY NOTE

The Laoag International Airport in Laoag City, Province of Ilocos Norte is the
country’s principal airport in Northern Luzon. It is a perfect gateway of tourist to the
northern part of the country. The significant growth in the volume of both domestic
and international air traffic in the country and the accelerated tourism development
thrust of the government necessitates an upgrading of the country’s international
airport facilities to provide world-class standard of service.

In this light, the proposed Bill seeks to create the Laoag International Airport
Authority, a body clothed with the corporate personality and sufficient powers
specifically to manage and administer the airport. The objective of providing
internationally acceptable standards of airport operations and services can be best
achieved by an office specifically tasked to do the job.

As could be gleaned from the fast track development and industrialization of
Cebu with the establishment of the Mactan-Cebu international Airport Authority, it is
hoped that the establishment of the Laoag International Airport Authority would
accelerate the growth and development of the region’s and city’s tourism industry
and the economic and business activities therein.

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IMELDA ROMUALDEZ-MARCOS
Representative
2" District, Ilocos Norte


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS

First Regular Session

1563

House Bill No.

Introduced by HON. IMELDA ROMUALDEZ-MARCOS

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 “Charter of the Laoag
International Airport Authority.”

SECTION 2. Creation of the Laoag International Airport 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. 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 tlocos 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 locos and the Northern Luzon regions as 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


(0) 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 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;

(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;

() To invest its idle funds, as it may deem proper, in government securities
and other evidences of indebtedness; and

() 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 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, the Department of Justice and the Department of Tourism.
In addition, four (4) members from the private sector recommended by the governor
of the Province of Ilocos Norte shall be appointed by the President of the Philippines
for a term of four (4) years. The governor of the Province of llocos Norte or his duly
authorized representatives shall be the ninth member.

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

SECTION 7. Functions, Powers and Duties of the Board. — \n 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 and charges related to the activities of the airports, upon
recommendation of the General Manager; and


() 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.

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 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.

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 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 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 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.

SECTION 12. Applicability of Civil Service Law. - The Authority and its
officials and employees shall be subject to the Civil Service Laws and its rules and
regulations.

SECTION 13. Borrowing Power. - The Authority may, in accordance with
Section 21, Article Il 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 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 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 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
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 government 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 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, 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 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,