Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS

Second Regular Session

House Bill No.__7360

Introduced by Representative Jose Enrique S. Garcia Il

EXPLANATORY NOTE

Boracay is a tropical island found in the north-western tip of Panay in the
Province of Aklan. Best known for its stunning white sand beaches and clear blue
waters, Boracay is now recognized the world over. It was awarded as the 2012
world's best island by international travel magazine Travel + Leisure,’ listed
among the “Top 10 destinations to watch in 2016"? by Conde Nast Traveler, and
ranked third among “The Best Islands for Beaches: 2019 Reader's Choice
Awards,” also by Conde Nast Traveler.

Drawn mainly by its “blindingly white sand" beaches, tourists from all over
the world flock to Boracay Island the whole year round. In 2017, over 2.1 million
visitors were recorded to have visited the island. The influx of tourists triggered
commercial developments, mostly tourism-oriented accommodations and related
establishments. Unfortunately, the rush to have a piece of the tiny jewel that is
Boracay brought major environmental concerns that severely impacted on the
island's ecological balance.

With an area of only 10.32 square kilometers, Boracay Island suffered from
over-tourism and degradation. In a forum held by the National Academy of
Science and Technology, Philippines, it was presented that the environmental
issues confronting Boracay Island include coastal erosion, improper coastal
infrastructure development, high rate of population increase, water quality
degradation, green tides, loss of coastal habitats, and lack of the local
government's knowledge on how to address the issues.

:/Inews,abs-cbn,comilifestyle/07/06/12/boracay-named-2012-worlds-best-island; last
accessed on 04 August 2020.

2 hitps://www.cntraveller,com/gallery/best-travel-destinations-2016; last accessed on 04 August
2020.

> https:/mww.cntraveler.com/gallery/best-islands-beaches; last accessed on 04 August 2020.
“As described by Conde Nast Traveler.

* https:/www.nast. phlindex.php/13-news-press-releases/353-science-policy-forum-finds-
environment-degradation-as-the-malor-problem-in-boracay; last accessed on 05 August 2020.



Alarmed by what he described as a “looming environmental disaster and
tragedy,”* the President eventually ordered the closure of the island for six (6)
months in April 2018, to undergo urgent rehabilitation. Boracay reopened in
October 2018 with the commitment that further steps shall be taken to prevent
further damage and ensure respect to the environment.

The task of rehabilitating Boracay is yet to be completed. Much more need
to be done and the effort must be continuing to sustain the gains realized by the
government's push to clean and restore the island to its former glory. To pursue
this, the creation of an Authority with the specific mandate to develop the island
with due regard to the preservation and protection of its natural resources and the
environment is definitely the best way forward. Through the Authority, the success
of the rehabilitation efforts will be preserved and further enhanced, and Boracay
will be showcased as a model for sustainable tourism and for establishing a
culture of environmentally conscious tourism development across the country.”

Support for this bill is earnestly requested from my colleagues.
lant

REP. JOSE ENRIQUE S. GARCIA Ill
Secénd District, Bataan

® https:/Inews.abs-cbn.com/news/02/10/18/duterte-slams-boracay-as-cesspool-threatens-to-shut-
down-island; last accessed on 05 August 2020.
inalysis/n

leading-way-environmentally-conscious-tourism, Test accessed on 05 August 2020,



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Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 7360

Introduced by Represent

AN ACT
CREATING THE BORACAY ISLAND DEVELOPMENT AUTHORITY

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

SECTION 1. Short Title. - This Act shall be known and cited as the
“Boracay Island Development Authority Act of 2020.”

SEC. 2. Declaration of Policy — It is hereby declared the policy of the State
to promote and accelerate sustainable development and balanced growth of the
Boracay Island consistent with the necessity of maintaining a sound ecological
balance and protecting and enhancing the quality of the environment. Towards this
end, the Boracay Island Development Authority shall be created to formulate
policies, plans, programs, and projects for the rehabilitation, preservation, and
enhancement of the terrestrial and marine ecosystem of Boracay Island, ensure
adequate provisions for environmental management and control, preserve the
equality of human life and ecological systems, and prevent undue ecological
disturbances, deterioration and pollution.

SEC. 3. Creation of the Boracay Island Development Authority. - A
government instrumentality with corporate powers to be known as the Boracay
Island Development Authority, hereinafter referred to as the “Authority” is hereby
created. It shall be attached to the Department of Environment and Natural
Resources (DENR) for purposes of policy direction and coordination.

The Authority shall be organized within ninety (90) days from the effectivity
of this Act.

Within the framework and subject to the mandate and limitation of the
Constitution and the provisions of the Local Government Code, the Authority shall
develop Boracay Island into a self-sustaining, tourism, industrial, commercial,


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financial and investment center to generate employment opportunities and to
attract and promote productive local and foreign investments, taking into account
the protection and preservation of the natural resources and biodiversity of the
island.

SEC. 4, Principal Office. - The Authority shall maintain its principal office in
Boracay Island without prejudice to the establishment of branch or satellite offices
in such other places as are deemed necessary for the proper conduct of its
business.

SEC. 5. Powers and Functions of the Authority. - The Authority shall have
the following powers and functions:

(a) Operate, administer, manage, and develop Boracay Island;

(b) Accept any local or foreign investment, business or enterprise, subject
only to such rules as may be promulgated by the Authority without prejudice to the
nationalization requirements under the Constitution;

(c) Formulate and implement short and long term strategies for eco-tourism
development, environmental protection, social development, and infrastructure
development;

(d) Approve or disapprove and issue the necessary clearances for all plans,
programs, and projects proposed by national and local government offices within
the island, public corporations, and private persons or enterprises where such
plans, programs, or projects are related to the mandate of the Authority;

(e) Undertake and regulate the establishment, operation and maintenance
of utilities, other services and infrastructure in the island, fix just and reasonable
fees, fares, charges and other prices therefore;

(f) Construct, acquire, own, lease, operate and maintain on its own or
through contract, franchise, license, permit, bulk purchase from the private sector
and build-operate-transfer scheme or joint venture the required utilities and
infrastructure in coordination with local government units and appropriate
government agencies;

(a) Raise and/or borrow funds from local and international financial
institutions and issue bonds, promissory notes, and other securities to secure the
same by guarantee, pledge, mortgage, deed of trust, or assignment of properties
held by the Authority for the purpose of financing its projects and programs within
the framework and limitations of this Act;

(h) Protect, maintain and develop forest lands, protected areas, and
wetlands. For this purpose, the rules and regulations of the DENR and other


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government agencies directly involved in the aforementioned functions shall be
implemented by the Authority;

(i) Adopt, implement, and enforce measures and standards for
environmental pollution control of all areas within its territory, including but not
limited to all bodies of water;

() Order the closure, suspension of development or construction, or
cessation of operations of any going concem that violates any provision of this Act
or of the rules and regulations issued by the Authority;

(k) Directly or indirectly operate or license tourism-related activities, subject
to priorities and standards set by the Authority;

(I) Adopt, amend, or rescind such rules and regulations and impose
reasonable fines for the effective implementation of the provisions of this Act;

(m) Adopt, alter and use a corporate seal; contract, lease, sell, dispose,
acquire and own properties; sue and sued in order to carry out its duties and
functions as provided for in this Act and exercise the power of eminent domain for
public use and public purpose subject to the observance of due process and the
payment of just compensation;

(n) Receive donations, grants, bequests and assistance of all kinds from
local and foreign government and private sectors and utilize the same;

(0) Exercise such other powers as may be essential, necessary, or
incidental to the powers granted to it as well as to carry out the policies and
objectives of this Act.

SEC. 6. Board of Directors. - The powers of the Authority shall be vested
in and exercised by a Board of Directors, hereinafter referred to as the Board,
which shall be composed of eleven (11) members, to wit:

(a) The Secretary of the DENR as chairperson;
(b) The Administrator of the Authority as vice-chairperson;

(c) The Director-General of the National Economic and Development
Authority;

(d) The Secretary of the Department of Tourism;
(e) The Secretary of the Department of Public Works and Highways;
(f) The Secretary of the Department of Transportation;

(g) The Secretary of the Department of Science and Technology;

(h) The Secretary of the Department of the Interior and Local Government;


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(i) The Representative of the second congressional district of Aklan;
(i) The Governor of the Province of Aklan; and
(k) The Municipal Mayor of the Municipality of Malay, Province of Aklan.

Except for the chairperson, the department secretaries who are ex-officio
members may designate their permanent representatives to the Board: Provided,
That the designated permanent representatives shall be holders of positions not
lower than the rank of department assistant secretary or its equivalent.

SEC. 7. Powers and Functions of the Board. — The Board shall be the
policy-making body and shall exercise the corporate powers of the Authority. In
addition, it shall perform the following powers and functions:

(a) Determine the organizational structure of the Authority, define the duties
and responsibilities of all officials and employees adopt a compensation and
benefit scheme at least equivalent to or comparable with thot of the Bangko
Sentral ng Pilipinas;

(b) Appoint all officials who are to occupy at least third level positions:
Provided, That the appointment of lower ranked officials and employees shall be
delegated to the Administrator;

(c) Prepare the annual and supplemental budgets of the Authority;

(d) Submit an annual report on the operation of the Authority to the
President of the Philippines, the President of the Senate, and the Speaker of the
House of representatives; and

(e) Carry out the purposes of the Authority.

SEC. 8. Board Meetings; Per Diems — The Board shall meet at least once a
month either in person or by electronic means. However, the chairperson, or upon
written request of majority of the members, may call for additional meetings during
the month. Notice in writing or by electronic means shall be served upon each
member at least three (3) days prior to the scheduled meeting.

The chairperson shall preside over the Board meeting. In his absence, the
vice-chairperson shall preside: Provided, that the chairperson may designate a
representative during such meeting. No Board meeting shall be held unless the
chairperson or the vice-chairperson is present.

The members of the Board or their representatives shall be entitled to per
diems for each meeting actually attended at an amount to be fixed by the Board
taking into consideration the rates prescribed for board members of comparable
government-owned and controlled corporations or government instrumentalities:


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Provided, That no member shall collect per diems in excess of four (4) meetings in
a month.

SEC. 9. Administrator. - The Authority shall be headed by an Administrator
to be appointed by the President of the Philippines, and chosen from at least three
(3) nominees to be submitted by the Board. The Administrator shall have a term
of six (6) years unless otherwise removed for cause in accordance with law.

No person shall be appointed as Administrator unless he is a natural-born
Filipino citizen, of good moral character, of unquestionable integrity, and of
recognized competence in relevant fields including, but not limited to, economics,
tourism, environmental protection, management, law, urban planning and
development.

SEC. 10. Powers and Functions of the Administrator. - The Administrator
shall be the chief executive officer of the Authority. He shall perform the following
powers and duties:

(a) Submit, for consideration of the Board, the policies and measures which
he believes to be necessary to carry out the purposes and provisions of this Act;

(b) Execute and administer the policies, plans, programs and projects
approved by the Board;

(c) Direct and supervise the operation and internal administration of the
Authority. The Administrator may delegate certain of his administrative
responsibilities to other officers of the Authority subject to such rules and
regulations issued by the Board;

(d) Appoint officials and employees below third level to positions in the
approved budget upon written recommendation of a duly constituted selection and
promotion group and guided by the standards set forth in the Authority's merit
system;

(e) Submit quarterly reports to the Board on personnel selection, placement
and training;

(f) Submit to the NEDA an annual report and such other reports as may be
required, including the details of the annual and supplemental budgets of the
Authority; and

(g) Perform such other functions as may be provided by law.

SEC. 11. Capitalization. ~ The Authority shall have an authorized capital
stock of Five hundred million pesos (PHP500,000,000.00) divided into five
hundred thousand (500,000) shares fully subscribed and paid up by the Republic
of the Philippines with:


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(a) Cash contribution by the Government in the amount of One hundred
million pesos (PHP100,000,000.00) a year for the next three years, which is
hereby appropriated out of any fund in the National Treasury not otherwise
appropriated; and

(b) All other assets which the President may transfer to the Authority as part
of the equity contribution of the Government.

SEC. 12. Legal Counsel. - The Authority shall have its own internal legal
counsel under the supervision of the Government Corporate Counsel (GCC).
When the exigencies of its operations demand, the Authority may engage the
services of an outside counsel either on a case-by-case or on a fixed retainer
basis.

SEC. 13. Auditor. - The Commission on Audit shall appoint a
representative who shall be the fulltime auditor of the Authority and such
personnel as may be necessary to assist said representative in the performance of
his duties.

SEC. 14, Implementing Rules and Regulations. — The Board, with the
assistance of the DENR, the Department of Tourism and the Department of the
Interior and Local Government, shall promulgate the necessary rules and
regulations within ninety (90) days from the effectivity of this Act.

SEC. 15. Separability Clause. — If for any reason, any part or provision of
this Act is declared invalid or unconstitutional, the other parts or provisions not
affected shall remain in full force and effect.

SEC. 16. Repealing Clause. — All laws, presidential decrees, executive
orders, rules and regulations contrary to or inconsistent with the provisions of this
Act are hereby repealed or modified accordingly.

SEC. 17. Effectivity — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved.