HOUSE OF REPRESENTATIVES
RE FE IVED
DATE:

8 JUL 2016

Time: ___ (es
BY:

Republic of the Philippines
HOUSE OF REPRESENTATIVES REGISTRATION UNIT
Quezon City, Metro Manila {_ BLS AND

SEVENTEENTH CONGRESS.
First Regular Session

3
HOUSE BILL not 938

Introduced by Honorable MARK A. VILLAR

AN ACT
CREATING A NATIONAL MOTOR VEHICLE SAFETY ADMINISTRATION

EXPLANATORY NOTE

The 1987 Constitution provides that “The prime duty of the Government is to serve
and protect the people, The Government may call upon the people to defend the State
and, in the fulfilment thereof, all citizens may be required, under conditions provided by
law, to render personal military, or civil service”. (Article II, Section 4)

Motor vehicle accidents have steadily increased through the past years. In 2014,
there were a total of ninety thousand two hundred fifty-eight road accidents in Metro
Manila. According to the latest Road Crash Statistics Report of the Metropolitan Manila
Development Authority's Metro Manila Accident Recording and Analysis System, there
were ninety-five thousand six hundred fifteen (95,615) road accidents in the National
Capital Region in 2015. Five hundred nineteen (519) were fatal; seventeen thousand one
hundred three (17,103) resulted in nonfatal injuries, while seventy-seven thousand nine
hundred ninety-three (77,993) others resulted in damage to property.

Road accident is among the leading causes of death in the Philippines. Data show
that around seventy-nine percent (79%) road crash fatalities are caused by driver error;
eleven percent (11%) caused by defective vehicles; ten percent (10%) caused by bad road
conditions and ill-maintained roads. Other causes include drunk driving, overspeeding,
lack of discipline, poor vehicle maintenance and use of cell phones.

In the latter part of 2015, however, it has been discovered that there are multiple
instances of accidents that are allegedly caused by defects in the automobiles themselves.
It has come to a point that these alleged defects cannot anymore be ignored. Fear has
crept into the hearts of those who own these alleged defective automobiles as danger can
surprisingly leap towards them and other people at any given moment.


Hence, it is the mandate of the Constitution that the State shall protect the people
and the consumers from this insidious fear and danger. Through the establishment of a
national governing body that will specifically address the safeness of motor vehicles, the
above-mentioned problems can be treated. The vehicle owners and the public can be then
set free from fear. In addition, traffic accidents can also be reduced.

Further, it has been found out through pending investigation that there is a lack of
teeth in our current laws with regard to the problem. There should be a system of
transparency wherein automotive companies can be held liable for hiding safety defects,
failing to recall defective vehicles, and making false reports.

This bill seeks to establish a National Motor Vehicle Safety Administration.

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


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House BILL No._1938

Introduced by Honorable MARK A. VILLAR

AN ACT
CREATING A NATIONAL MOTOR VEHICLE SAFETY ADMINISTRATION

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 as the “National Motor Vehicle
Safety Administration Act of 2016."

SEC. 2. Declaration of Policy. — In accordance with the Government's prime duty

to serve and protect the people, the State recognizes that there must be a governing body
created and measures crafted to bolster the safeness of motor vehicles in order to prevent
or lessen accidents involving motor vehicles or land transportation

SEC. 3. Definitions of Terms. - The following terms shall be defined as follows:

(1) “Manufacturer” means a person manufacturing or assembling motor vehicles or

motor vehicle equipment, or a person importing motor vehicles or motor vehicle equipment
for resale;

(2) "Motor vehicle” means a vehicle driven or drawn by mechanical power and

manufactured primarily for use on public streets, roads, and highways, but does not
include a vehicle operated only on a rail line;

(3) “Motor vehicle equipment” mean any system, part, or component of a motor
vehicle as originally manufactured; any similar part or component manufactured or sold for
replacement or improvement of a system, part, or component, or as an accessory or
addition to a motor vehicle; or any device or an article or apparel (except medicine or


eyeglasses prescribed by a licensed practitioner) that is not a system, part, or component
of a motor vehicle and is manufactured, sold, delivered, offered, or intended to be used
only to safeguard motor vehicles and highway users against risk of accident, injury, or
death; and

(4) “Motor vehicle safety’ means the performance of a motor vehicle or motor
vehicle equipment in a way that protects the public against unreasonable risk of accidents
occurring because of the design, construction, or performance of a motor vehicle, and
against unreasonable risk of death or injury in an accident, and includes non-operational
safety of a motor vehicle.

SEC. 4. Creation of the National Motor Vehicle Safety Administration. - There
is hereby created a National Motor Vehicle Safety Administration (NMVSA), which shall be
attached to the Department of Transportation (DOT?)

SEC. 5. Composition and Organization. - The NMVSA shall be composed of
seven (7) full-time Members, and comprised of.

(a) The Director-General, who shall be appointed by the President, shall serve as
the Chairman and have the rank of Assistant Secretary, and shall have a term of five (5)
years. Provided that the term of the initial appointees shall be staggered such that the
Chairman shall hold office for a term of five (5) years; the next three (3) members for three
(3) years and the other three (3) members for two (2) years; and

(b) Six (6) other members, preferably one (1) representative each from the DOTr,
Department of Public Works and Highways (DPWH), Department of Trade and Industry
(DTI), and the Philippine National Police (PNP) appointed by the President, upon
recommendation of their respective Heads. The other two (2) members shall be preferably
experts from the private sector who shall also be appointed by the President, upon
recommendation by the DOTr Secretary

Upon expiration of their respective terms, they shall continue to serve until their
successor shall have been appointed and qualified. In case a member fails to complete his
term, his successor shall only serve the unexpired portion of the term of his predecessor.

‘SEC. 6. Executive Director. - There shall be an Executive Director of the NMVSA,
who shall be appointed by the Chairman.

(a) The Executive Director must be at least thirty-five (35) years of age at the time
of his/her appointment, a Member of the Philippine bar, and who has practiced
his profession for at least ten (10) years prior to the date of his appointment. He
must not have been a candidate for any elective position in the elections
immediately preceding his appointment.

(b) The Executive Director shall

1. Record and officially report on the proceedings of the NMVSA and shall have
authority to administer oaths in all matters falling within NMVSA jurisdiction;

2. Run the day-to-day operations of the NMVSA;


3. Act as the custodian of the records, maps, profiles, reports, and other
documents and papers filed in connection with any proceedings before the
NMVSA‘

4, Be responsible for the efficient and effective implementation of the policies,
rules, and directives promulgated by the NMVSA; and

5. Coordinate and supervise the activities of the different operating units of the
NMVSA and shall perform such other functions as may be assigned to him
by the Chairman and/or the Members.

SEC. 7. Compensation. — The compensation of the Executive Director shall
receive the compensation and other emoluments as provided by the Civil Service Rules
and Regulations.

SEC. 8. Operating Units in the NMVSA. - The different operating units of the
NMVSA shall be created, in accordance with existing rules and regulations, by the
implementing rules and regulations of this Act.

SEC. 9. Duties and Functions of the NMVSA. - The NMVSA shall

(a) Prescribe motor vehicle safety standards for motor vehicles and motor vehicle
equipment, which will serve as preventive measures;

(b) Cary out needed safety research and development; and

(c) Investigate causes of highway, road, and street accidents, especially those
which in the judgment of the NMVSA, are catastrophic and/or recurring

SEC. 10. Investigation by the NMVSA. - The NMVSA has jurisdiction to
investigate motor vehicle safety-related defects, and those cases which in the NMVSA’s
judgment, suggest a potential safety defect involving groups of motor vehicles or motor
vehicle equipment.

SEC. 11. Conduct of Investigation by the NMVSA. ~ The NMVSA shall conduct
its investigations in the following stages:

(a) Screening. Under the screening process, complaints and/or information are
reviewed by the NMVSA. Should the NMVSA determine that there is a motor vehicle
safety-related trend or a recurring or catastrophic failure, the NMVSA shall proceed to an
investigation;

(b) Petition Analysis. Any person may submit a petition requesting the NMVSA to
open an investigation into an alleged motor vehicle safety-related defect. After technical
analysis, should the petition be granted, an investigation will be conducted. A person may
also submit a petition requesting the NMVSA to hold a hearing on whether a manufacturer
has reasonably met its obligation to notify and/or remedy a motor vehicle safety-related
defect or noncompliance with a motor vehicle safety standard;

(c) Preliminary Evaluation. This is opened on the basis of information received or
complied by the NMVSA. In this evaluation, information is obtained from the
manufacturer. The latter is given an opportunity to present its views regarding the motor


vehicle safety-related defect. This can be closed on the basis that further investigation is
not warranted, or when the manufacturer decides to conduct a recall; and

(d) Engineering Analysis. This part of the investigation involves a more complete
and detailed analysis of the motor vehicle-related defect. Inspections, test, and surveys
are done at this point while utilizing all the information gathered. The investigation may be
closed if the manufacturer has notified the NMVSA that it will conduct a safety recall or if
the NMVSA has not identified a motor vehicle safety-related defect. However, if the
NMVSA believes that the data complied indicates that a safety-related defect exist, the
NMVSA prepares a briefing to be presented to a panel of experts for peer review. If the
panel concurs with NMVSA recommendation that a recall should be conducted, NMVSA
Notifies the manufacturer of the panel's concurrence and may, if appropriate, provide a
final opportunity for the manufacturer to present new analysis or data. The NMVSA then
sends a Recall Request Letter to the manufacturer.

Should the manufacturer decline to conduct a recall, the NMVSA shall issue an
initial decision that a safety-related defect exists,

Thereafter, a public meeting shall be held. Manufacturers and public persons with
interests can present information and arguments. Manufacturers can refute the
government.

Once the above mentioned is presented to the NMVSA, it shall issue a final
decision. The manufacture can challenge the final decision in court. The burden of proof is
‘on the NMVSA. The NMVSA can also seek the court to compel the manufacturer to
conduct recall

SEC. 12. Powers of the NMVSA. — The NMVSA shall have the following powers:

(a) The NMVSA or any member so designated may conduct hearings, administer
oaths, and require the attendance and testimony of witnesses as well as the production of
papers, contracts, agreements and all other relevant documents deemed necessary in any
inquiry or investigation pending before the NMVSA;

(b) Any representative authorized by the NMVSA, upon presenting appropriate
credentials, may enter any property wherein a transportation accident has occurred or
wreckage from such accident is located in order to undertake the appropriate investigation
thereof. The representative may inspect at reasonable times, records, files processes,
controls, and facilities relevant to the investigation of such accidents. Each inspection shall
be commenced and completed with reasonable promptness;

(c) And officer or employee of the NMVSA may examine or test any motor vehicle
‘Such examination or test shall be conducted in a manner that;

(1) Does not unnecessarily, interfere with the transportation services
provided by the owner or operator of the motor vehicle; and

(2), To the maximum extent feasible, preserves evidence related to the
accident, consistent with the needs of the investigation and with the cooperation of
that owner or operator.


(d) The NMVSA may require and shall be furnished a copy of the autopsy reports
by the official concemed on any person who dies as a result of having been involved in a
motor vehicle accident. The NMVSA may order, if necessary, the autopsy, or require other
tests of such persons as may be needed for the investigation of the accident;

(e) The NMVSA may enter into such contract, leases, agreements and other
transactions as may be necessary in the conduct of its functions and duties;

(f) The NMVSA may call assistance of, and use any available services, equipment,
facilities, of the DOJ, DOTr, DPWH, PCG, PNP, Department of National Defense (DND)
and other agencies and instrumentalities of the government;

(g) The NMVSA may create advisory committees composed of qualified private
citizens and government officials with whom the NMVSA may consult in the
implementation of its functions and duties. Whenever necessary, the NMVSA may likewise
appoint or retain the services of recognized experts as consultants on the accidents under
investigation;

(h) Appoint advisory committees composed of qualified private citizens and officials
of the national government and LGUs as appropriate; and

(i) The NMVSA or any officer, or employee designated by the Chairman, may
conduct an inquiry to obtain information related to motor vehicle safety.

SEC. 13. Reportorial Requirement. — The manufacturer shall submit a report to
the NMVSA should it discover that a safety-related defect or a potential safety-related
defect exist in its motor vehicles or motor vehicle equipment, or when directed by the
NMVSA to submit such report concerning a safety-related defect or a potential safety-
related defect. There shall be a penalty of one (1) year imprisonment and a fine of ten
million pesos (P10,000,000.00) imposed on the manufacturer should it fail to comply with
this provision.

When the offender is a juridical person, liability shall attach to its president, chief
operating officer, or manager.

SEC. 14. Notification Requirement. - The manufacturer shall notify the motor
vehicle owners should it discover that a safety-related defect or a potential safety-related
defect exist in its motor vehicles or motor vehicle equipment, and it voluntarily implements
a recall or it is ordered by the NMVSA to recall. There shall be a penalty of one (1) year
imprisonment and a fine of ten million pesos (P10,000,000.00) imposed on the
manufacturer should it fail to comply with this provision.

When the offender is a juridical person, liability shall attach to its president, chief
operating officer, or manager.

SEC. 15. Submission of False Reports. — Should the manufacturer submit false
reports, or does not disclose information conceming existing safety-related defects or
potential safety-related defects in the said report, there shall be imposed upon the
manufacturer a penalty of one (1) year imprisonment and a fine of ten million pesos
(P10,000,000.00)


When the offender is a juridical person, liability shall attach to its president, chief
operating officer, or manager.

SEC 16. Issuance of Implementing Rules and Regulations. - Within ninety (90)
days from the approval of this Act, the DOTr, and the DTI, in consultation with appropriate
agencies, shall promulgate the rules and regulations to implement the provisions of this
Act. Such rules and regulations shall take effect fifteen (15) days after its publication in a
newspaper of general circulation.

SEC. 17. Appropriations. -The amount necessary for the initial implementation of
this Act shall be charged to the current appropriations of the DOTr and the DTI. Thereafter,
such sum as may be necessary for its continued implementation shall be included in the
annual General Appropriations Act

SEC. 18. Separability Clause. - If any law or provision or part hereof is held invalid
or unconstitutional, the remainder of the provision not otherwise affected shall remain valid
and subsisting

SEC. 19. Repealing Clause. - Any other provisions of law or rules and regulations
inconsistent to the provisions of this Act are hereby repealed, amended or modified
accordingly.

SEC. 20. Effectivity - This Act shall take effect fifteen (15) days after its complete
publication in the Official Gazette or in at least two (2) newspapers of general circulation,
whichever comes earlier.

Approved,