HOUSEOF REPRESENTATIVES
RECEIVED
Republic of the Philippines

HOUSE OF REPRESENTATIVES TE _2.4 AUG 2016.
Quezon City | oTME: Es

BY: Year
SEVENTEENTH CONGRES|
First Regular Session { PECISTRATION UNIT
3.2'7g,_B1LS 20 INDEX SERVICE

HOUSE BILL No.

Introduced by Honorable ROSENDA ANN OCAMPO

EXPLANATORY NOTE

Republic Act No. 8794 entitled, “An Act Imposing a Motor Vehicle User’s Charge
on Owners of All Types of Motor Vehicles and for Other Purposes”, created the Road
Board to implement the prudent and efficient management and utilization of the special funds
collected via Road User’s Tax, which are earmarked solely and used exclusively for (a) road
maintenance and the improvement of road drainage, (b) installation of adequate and efficient
traffic lights and road safety devices, and (c) air pollution control.

The collection from the road user’s tax was estimated at P90.72 Billion from 2001 to
December 2012. Past Commission on Audit (COA) reports showed vestiges of illegal
utilization of Road User's Tax over the years. For CY 2004-2008, the Road Fund was used
for payment of salaries, allowances, maintenance, and other operating expenses of the Road
Board properly chargeable to the regular budget, amounting to P515.50 Million of unlawful
expenses.

From 2001 to 2010, COA pointed out discrepancies amount to P1.495 Billion in the
total collection of Road User’s Tax, as stated in the respective certifications of the Land
‘Transportation Office and the Bureau of Treasury.

In its 2011 report, COA reported that the P62.52 Million fund of the Road Board
earmarked for road maintenance and repair, was used instead for its engineering and
administrative overhead expenses.

And finally, in the 2013 COA report, findings of irregularities in the expenditure of
more than P1,66 Billion in funds were uncovered.

Obviously, the Road Board is just another layer of bureaucracy, which became an
avenue for graft and corruption. By abolishing this regulatory agency, the public funds will
be re-channeled to the proper government agencies such as the Department of Public Works


and Highways (DPWH) and the Department of Transportation and Communications
(DOTC), which will implement the road safety measures and projects.

In view of the foregoing the immediate passage of this bill is earnestly sought.

R A ANN OCAMI


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

3278

HOUSE BILL NO

Introduced by Honorable Rosenda Ann Ocampo

AN ACT
ABOLISHING THE ROAD BOARD CREATED BY VIRTUE OF REPUBLIC ACT
NO, 8794 AND TRANSFERRING ITS POWERS AND FUNCTIONS TO THE
DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS AND TO THE
DEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS, AMENDING
FOR THE PURPOSE REPUBLIC ACT NO. 8794

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

SECTION 1. Section 7 of Republic Act No. 8794 is hereby amended to read as
follows:

“SECTION 7. Disposition of Monies Collected. All monies collected
under this Act shall be earmarked solely and used exclusively (1) for road
‘maintenance and the improvement of road drainage, (2) for the installation of
adequate and efficient traffic lights and road safety devices, and (3) for air
pollution control.

All such monies collected shall be deposited in four (4) special trust
accounts in the National Treasury, namely: (1) Special Road Support Fund; (2)
Special Local Road Fund; (3) Special Road Safety Fund; and (4) Special
Vehicle Pollution Control Fund. The distribution of collections under this Act
shall be as follows:

XXX.

[A Road Board to implement the prudent and efficient management
and utilization of the special funds shall be organized by the President of the
Philippines. The Road Board shall be composed of seven (7) members, with
the Secretary of the DPWH as ex officio head, and the secretaries of the


Department of Finance, Budget and Management, and the Transportation and
Communications, as ex officio members. The remaining three (3) members
shall come from the transport and motorist organizations which have been in.
existence and active for the last five (5) years prior to this Act. They shall be
appointed for the term of two (2) years each by the President of the Philippines
upon the recommendation of the Secretaries of the DPWH and the DOTC.}

SECTION 2. Rules and Regulations, ~ The Secretaries of the Department of Public
Works and Highways (DPWH) and the Department of Transportation and Communications
(DOTC) shall jointly promulgate within thirty (30) days from effectivity of this Act, the rules
and regulation to implement and carry out the intent, objectives, purposes, and provisions of
this Act, including such structural and procedural improvement in the systems and agencies
concerned as may be necessary to ensure the prudent, wise, effective, and efficient utilization
of the special funds established under Republic Act No. 8794: Provided, that the Secretary of
the DPWH shall prepare the portion of their implementing rules and regulations pertaining to
the Special Road Support Fund, the Special Local Road Fund, and the Special Road Safety
Fund, and the Secretary of the DOTC shall prepare the portion of the implementing rules and
regulations pertaining to the collection of the motor vehicle’s user’s charge and on the
disposition of the monies accruing to the Special Vehicle Pollution Control Fund. Provided
further, that the secretaries of the DPWH and the DOTC are barred from creating a secretariat
and may only be assisted by a minimal number of staff in the administration and
implementation of the special funds established under Republic Act No. 8794.

SECTION 3. Separability Clause.- Should any provision of this Act or part hereof be
declared invalid or unconstitutional, the other provisions or parts not affected thereby shall
remain valid and effective.

SECTION 4. Repealing Clause. - All laws, decrees, orders, and issuances, or
portions thereof, which are inconsistent with the provisions of this Act are hereby repealed,

amended, or modified accordingly.

SECTION 5. Effectivity. - This Act shall take effect fifteen (15) days from its
publication in two (2) newspapers of general circulation.

APPROVED.