EIGHTEENTH CONGRESS OF THE. )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES

H.B.No,__4911

Introduced by Rep. Vilma Santos-Recto
6th District of Batangas

AN ACT
CREATING THE SPECIAL MASS TRANSIT SYSTEM SUPPORT FUND AMENDIN¢
FOR THE PURPOSE SECTION 7 OF REPUBLIC ACT NO. 8794, AS AMENDED

EXPLANATORY NOTE

There are approximately 96.47 million (90%) out of our 107.19 million’ population who
constitute the riding public. On the other hand, the total number of motor vehicles registered
with the Land Transportation Office (LTO) in 2018 reached 11.59 million, of which 970,470
(8%) are public utility vehicles.

Our nation’s transport system relies heavily on the road network which handles roughly
ninety percent (90%) of passenger movement and fifty percent (50%) of freight movement,*

serving priority production areas and population centers.

Since the passage of Republic Act No. 8794, also known as the “Motor Vehicle User’s
Charge (MVUC) Act” in June 2000, the road user’s tax has been imposed on owners of all types
of vehicles, whether for hire, for private or government use. Based on the 2019 Budget of
Expenditures and Sources of Financing, the balance of the collections from Motor Vehicle
User's Charge (MVUC) as of December 31, 2017 amounts to P28.13 Billion while the estimated

revenues for 2019 amounts to P13.93 Billion.*

The increase in number of motor vehicles has corollarily increased the MVUC collections.

However, it has also made the traffic situation in our country worse. According to reports, Metro

+ popcom.gov-ph (accessed 15 July 2019)

? Land Transportation Office. Annual Report 2028. (accessed 15 July 2019)

® National Economic and Development Authority, NEDA MTPDP 2004-2010’: Chapter 6: infrastructure (2004)"

“Department of Budget and Management, “Budget of Expenditures and Sources of Financing (Table 6.15): Fiscal Year 2019"

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Manila may soon become “uninhabitable” if roads and other infrastructure are not upgraded
immediately as the volume of vehicles sold is expected to surge to 500,000 by 2020.*

The cost of traffic in Metro Manila, quantified by wasted time, fuel and lost human
productivity, was estimated at P3.5 billion a day in 2017 and projected to rise to as much as PS.4
billion daily by 2035.

This measure seeks to amend the MVUC Act by realigning funds from the MVUC for the
construction, improvement and rehabilitation of our mass transit system. While total elimination
of traffic congestion would be challenging, persistent efforts to improve the country’s mass
transport systems would certainly be a factor in easing traffic and translate into benefits such as
increase in productivity, cleaner environment and a healthier population,

The approval of this bill will address the need to provide efficient and effective mass
transit system in our country. Expansion and improvement of mass transit has been proven to be
cost-effective in developed countries since it addresses concerns on traffic and parking
congestion, travel time, costs of road network, road safety, health and environment, excessive

energy consumption and limited mobility for non-drivers.

With the foregoing considered, the approval of this bill is hereby requested.

* Richard) Mere aie Mero ant ibaa yer,

p/w

July 2019).

“Partners in Nation Building. JCA Annual Report 2018, (accessed 14 July 2018).
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EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES
HBNo__49!1

Introduced by Rep. Vilma Santos-Recto
6th District of Batangas

AN ACT
CREATING THE SPECIAL MASS TRANSIT SYSTEM SUPPORT FUND AMENDING
FOR THE PURPOSE SECTION 7 OF REPUBLIC ACT NO. 8794, AS AMENDED

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

Section 1. Short Title. — This Act shall be known as the “Special Mass Transit
System Support Fund Act”.

Sec. 2. Disposition of Monies Collected. — Section 7 of R.A. No. 8794, as amended, is
hereby further amended to read as follows:

“Sec. 7. Disposition of Monies Collected— All monies collected under this Act
shall be [remitted to-the National Treasury under a special account inthe General Fund
te-be] earmarked solely AND USED EXCLUSIVELY for the construction, [upgrading;
repair] IMPROVEMENT, and rehabilitation of [roads,—bridges-and-road drainage]
OUR MASS TRANSIT SYSTEM, INCLUDING THE ACQUISITION OF ROAD
RIGHT-OF-WAY FOR SUCH PROJECTS to be included in the annual General
Appropriations Act.

ALL SUCH MONIES COLLECTED SHALL BE REMITTED TO THE
NATIONAL TREASURY UNDER A SPECIAL ACCOUNT IN THE GENERAL
FUND TO BE KNOWN AS THE SPECIAL MASS TRANSIT SYSTEM
SUPPORT FUND. THE SAID FUND SHALL BE UNDER THE DEPARTMENT
OF TRANSPORTATION (DOTR).

Sec. 3. A new Section 8 is hereby inserted after Section 7 of the same Act to read as
follows:

“SEC. 8. THE SPECIAL FUND ESTABLISHED UNDER THIS ACT
SHALL BE DISTINCT AND SEPARATE FROM AND IN ADDITION TO ANY
APPROPRIATION AUTHORIZED AND GRANTED YEARLY TO THE DOTR

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TO COVER EXPENDITURES FOR THE IDENTIFIED OBJECTS OF

EXPENDITURES UNDER THIS ACT. CONGRESS SHALL CONTINUE TO

APPROPRIATE AN AMOUNT IN THE GENERAL APPROPRIATIONS ACT

FOR THE CONSTRUCTION, IMPROVEMENT AND REHABILITATION OF

THE MASS TRANSIT SYSTEM UNDER THE DOTR: PROVIDED, HOWEVER,

THAT ANY SAVINGS FOR EACH YEAR OUT OF SUCH APPROPRIATION

SHALL REVERT TO THE GENERAL FUND. ANY SAVINGS FROM THE

SPECIAL FUND CREATED HEREIN SHALL ACCRUE TO THIS SPECIAL

FUND.”

Sec. 4. The succeeding sections of the same Act are hereby renumbered accordingly.

Sec. 5. Implementing Rules and Regulations. — The Department of Budget and
Management, in coordination with the Bureau of the Treasury and the DOTr, shall within sixty
(60) days from the effectivity of this Act, promulgate the rules and regulations to effectively
implement the provisions of this Act.

Sec. 6. Separability Clause. — If any portion or provision of this Act is declared
unconstitutional, the remainder of this Act or any provisions not affected thereby shall remain in
force and effect.

Sec. 7. Repealing Clause. — Any law, presidential decree or issuance, executive order,
letter of instruction, rule or regulation inconsistent with the provisions of this Act is hereby
repealed or modified accordingly.

Sec. 8. Effectivity Clause. — This Act shall take effect after fifteen (15) days following
its complete publication in the Official Gazette or in at least two (2) newspapers of general

circulation,

Approved,