.. 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 
'13 
JUL -3 P6 :38 
421 
,;-', , 
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 governrnent 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 lIocos 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. 
I 
R. MARCOS, JR. 


---------------------------------------
'. 
SIXTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
. ;II'.> 1 
Senate Bill No. 'i ~ 
.s.wtl:VP. 
i@(f,;. "f tlj. j,.".t"'~ 
'13 
JUL -3 P6 :38 
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 "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 (DOTC). The principal 
office of the Authority shall be located at the Laoag International Airport. 
Province of lIocos 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 lIocos Norte. hereinafter referred to as the Airport. In addition. it shall have the 
following objectives: 
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(a)To encourage, promote and develop intemational and domestic air 
traffic in the lIocos and the Northern Luzon regions as means of making 
the region a center of international trade and tourisrn, and 
accelerating the development of the rneans 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 
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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; 
(i) To invest its idle funds, as it may deem proper, in government securities 
and other evidences of indebtedness; and 
(j) 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. Po/icy 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; 
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" 
(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 ond 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 (DOF), 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 (9 th ) 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 Dllties 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; 
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(blTo appoint the General Manager of the Authority who shall be the 
Chief Executive Officer of the Authority; 
(cl 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; 
(dlTo 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; 
(elTo 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 
(I) 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: 
(alTo 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; 
(cl 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; 
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:, 
(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 promulgqted 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 govemment 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 
(GAA) of the year following its enactment into law. 
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Thereafter, the government contribution to the capital of the Authority 
shall be provided for in the General Appropriations Act (GAA), 
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. 
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 
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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 Authorrty 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 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 
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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 Intemational Airport as a division of the Air 
Transportation Office is hereby abolished. The Airport General Manager of the 
Laoag Intemational 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, 
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