\
EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
SENATE
s. No. 
9 7 9
S e n a te
'''(Sflttf of ttjf frftrftnrj*
*19 AUG 28 PI 43
■ R£C£lv. D SV
Introduced by Senator Ralph G. Recto
AN ACT
PROVIDING FOR A MAGNA CARTA FOR THE ROAD TRANSPORTATION 
SECTOR
EXPLANATORY NOTE
The Philippine Constitution mandates the protection and enhancement of the 
right of all people to human dignity and the reduction of social and economic 
inequities. The State also guarantees the rights of all sectors, including those in the 
road transportation industry, to participate in the policy and decision-making 
processes affecting their rights and benefits as provided by law.
Transportation provides the physical link in every economic and social activity. 
It is therefore legitimate and indispensable to safeguard an industry that is vital to 
economic growth and social development. It plays a crucial role in everyone's life as 
it meets the demand for the sustainable mobility of both people and goods.1
For the past four decades, the perennial problems of the road transportation 
industry remain unsolved. 
The high cost of fuel, abusive traffic law enforcers, 
problems in the issuance of franchise of public utility vehicles, proliferation of 
colorum vehicles, poor road conditions, traffic congestion, and air pollution 
immensely affect the road transportation sector.
This measure aims to provide for the institutionalization of the participatory 
mechanisms for the 
road 
transportation 
sector by 
including 
at least one
1 http://www.iru.org/en_about-road-transport


representative 
from 
the 
sector 
in 
the 
governing 
boards 
of 
government 
instrumentalities in the national and local level.
As a piece of legislation that intends to empower and comprehensively protect 
the rights of the road transportation sector, particularly the road transportation 
workers, the following provisions are included:
a) Creation of a Road Incident Complaints and Investigation Office;
b) Free legal assistance, counseling and representation for indigent members 
of the road transportation sector; and
c) Mandatory enrollment of road transportation workers in institutions 
providing employee benefits such as Social Security System, Philhealth 
and Pag-IBIG Fund.
Likewise, the proposed legislation aims to promote and develop the road 
transportation sector by providing short-course trainings to be designed and 
conducted by the Technical Education and Skills Development Authority. The bill 
requires the construction of a free common transportation terminal facilities and 
creation of a One-Stop Transportation Services Office as well as the establishment of 
a Road Transportation Surety Fund Program.
With the foregoing considered, immediate approval of this bill is requested.
mjma


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
S. No. 
9 7 9
i^cnate
ot t|)f Iki’crrtnrp
'19 AUG 28 PI ^3
RECEIVr.D BY..
Introduced by Senator Ralph G. Recto
%\
AN ACT
PROVIDING FOR A MAGNA CARTA FOR THE ROAD TRANSPORTATION 
SECTOR
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. Title. -  This Act shall be known as the "Magna Carta for the Road
2 
Transportation Sector Act".
3 
Sec. 2. Declaration o f Policy. -  It is the declared policy of the State to
4 
guarantee the rights of those in the road transportation industry to participate in the
5 
policy and decision making processes affecting their rights, welfare and privileges.
6 
The State shall provide a mechanism to uplift the standard of living and quality of
7 
life of those in the road transportation sector. They must be empowered to meet
8 
their minimum basic needs, through partnership with the government. It is likewise
9 
vital that the State shall recognize and encourage the road transportation sector as
10 
its partner to achieve the goals towards effective delivery and implementation of a
11 
wide range of safe, efficient and affordable road transportation services to the
12 
people.
13 
To attain the foregoing policy:
14 
(a) 
The State shall provide full access to government support and
15 
services to the road transportation sector;
16 
(b) 
The State shall prioritize investments in transportation-related
17 
programs to enable the road transportation sector to participate in the
18 
country's development; and


1 
(c) 
The State shall formulate national policies and guidelines for the
2 
integrated and comprehensive road transportation programs in the national
3 
and local levels.
4 
Sec. 3. Definition o f Terms. -  As used in this Act, the following shall mean:
5 
(a) 
Road Transportation Sector -  shall refer to operators, owners
6 
and their employees engaged in the movement of people and commodities for
7 
a fee; passengers; and those in transportation-related businesses who provide
8 
goods and services to the general public.
9 
(b) 
Road Transportation -  shall refer to the transportation of
10 
passengers and goods on the road, which includes but is not limited to public
11 
utility vehicles such as buses, jeepneys, taxis, TNVS providers, coaches, trucks,
12 
motorcycles and tricycles.
13 
(c) 
National Road Transportation Group -  shall refer to the
14 
representative association to be established and organized to cater to a
15 
national constituency, and whose mandate includes the protection of the
16 
interests and rights of road transportation operators, owners and workers;
17 
passengers and those in transportation-related businesses to ensure economic
18 
growth and prosperity through the sustainable mobility of people and goods.
19 
(d) 
Road Transportation Education -  shall refer to non-degree
20 
programs aimed to provide education and training in the planning, design,
21 
construction, and operation of vehicles for road transportation.
22 
Sec. 4. Right to Organize and to Participate in Democratic Exercises. -  Every
23 
road transportation association shall have the right to organize and determine its
24 
programs and projects on road transportation subject to their charter and bylaws:
25 
Provided, That it does not infringe on the basic rights and freedom of those
26 
belonging to the road transportation sector: Provided, further. That the road
27 
transportation sector shall also have the right to participate in the deliberation of
28 
issues and in the formulation of policies that affect them, including the guarantee of
29 
representation 
in 
the 
governing 
boards 
or 
appointment 
in 
government
30 
instrumentalities.


1 
Sec. 5. Right Against Abusive Traffic Law Enforcers. -  The State shall establish
2 
a Road Incident Complaints and Investigation Office directly under the Department
3 
of Justice to receive and act on complaints against traffic abuses.
4 
Sec. 6. Right to Collective Bargaining. -  All road transportation workers shall
5 
have the right to engage in collective bargaining with road transportation operators
6 
and owners to promote the interests of employees such as, just compensation,
7 
health benefits and social security, among others.
8 
Sec. 7. Right to Free Legai Assistance. -An indigent member of the road
9 
transportation sector who becomes a party to a transportation-related civil and/or
10 
criminal case, may avail of free legal assistance, counseling and representation
11 
before the courts from the Public Attorney's Office, subject to existing rules and
12 
regulations.
13 
Sec. 8. Social Protection. -  The road transportation workers shall be enrolled in
14 
the Social Security System (SSS), Philhealth and Pag-Ibig Fund. The employer or
15 
operators shall deduct from the workers' income or salary the monthly social security
16 
contribution based on the respective schedule of contributions and remit their
17 
corresponding share of contribution to the SSS, Philhealth and Pag-IBIG; Provided,
18 
That, if the road transportation worker is paid on a commission basis, the monthly
19 
premium payments to SSS, Philhealth and Pag-IBIG shall be shouldered by the
20 
worker but, the operator may assist in facilitating the remittance to said institutions.
21 
Sec. 9. Creation o f a National Road Transportation Group. -  There shall be
22 
established 
a 
National 
Road 
Transportation 
Group 
to 
represent 
the 
road
23 
transportation sector in policy-making and decision-making affairs in the national
24 
and local level.
25 
There shall be a national representative in the governing boards and
26 
government instrumentalities, to include, but not limited to, the Land Transportation
27 
Franchising and Regulatory Body (LTFRB), Toll Regulatory Board (TRB), Land
28 
Transportation Office (LTO) and Department of Transportation (DOTr). It shall have
29 
its set of officers elected in an annual election.
30 
The National Road Transportation Group shall be involved in activities which
31 
include, but are not limited to:


1 
(a) 
Recommend policies that will empower the road transportation
2 
sector;
3 
(b) 
Monitor all activities, legislation, policies and events that will
4 
impact on the road transportation sector;
5 
(c) 
Dialogue 
with 
intergovernmental 
bodies 
and 
all 
other
6 
stakeholders concerned on the role and importance of the road transportation
7 
industry, of its position on various issues, and sharing of reliable data and
8 
information;
9 
(d) 
Cooperate with governing and legislative bodies in order to
10 
contribute to informed and effective legislation, to maintain balance between
11 
the needs and interests of all; and
12 
(e) 
Provide 
services 
and 
information 
to 
road 
transportation
13 
operators and workers, such as but not limited to reporting legislative
14 
developments, legal assistance, professional training and road transportation
15 
credit assistance.
16 
Sec. 10. The Road Transportation Charter and Bylaws. -T h e re  shall be a Road
17 
Transportation Group charter and by-laws crafted by the heads or representatives of
18 
all accredited road transportation associations and ratified by a simple majority of all
19 
its members.
20 
Sec. 11. Qualifications o f Road Transportation Representatives. - 
No person
21 
shall be elected as a Road Transportation Group representative unless he is a citizen
22 
of the Philippines, at least thirty (30) years of age, able to read and write, a bona
23 
fide member of any legitimate road transportation association for at least one (1)
24 
year prior to the election, and has never been convicted of any administrative, civil
25 
or criminal offense involving moral turpitude.
26 
If, at any time, an officer or representative ceases to be a bona fide member of
27 
the represented transportation group, through expulsion, resignation, or any manner
28 
of removal sanctioned by its association and by-laws, the position shall automatically
29 
be declared vacant and shall be filled up accordingly as provided in the charter and
30 
by-laws.
31 
Sec. 12. Creation o f a One-Stop Transportation Services Office. -  A one-stop
32 
processing and approval center shall be created at least in every province and city to


1 
facilitate and expedite the business application process, enrollment in social security,
2 
Pag-IBIG and Philhealth benefits and to serve existing and potential investors in the
3 
road transportation sector in order to enhance the investment climate. The DOTr,
4 
LTO, LTFRB, SSS, Philhealth, Pag-IBIG and other government agencies concerned
5 
shall collaborate, agree and commit to share resources and responsibilities in
6 
facilitating the required documentation and registration procedures.
7 
Sec. 13. Establishment o f a Road Transportation Surety Fund Program. -  The
8 
Road Transportation Surety Fund Program shall be created under the Land Bank of
9 
the Philippines (LBP) and the Development Bank of the Philippines (DBP) for the
10 
purpose of funding special programs for the development of the road transportation
11 
sector in accordance with the rules and regulations of the Banko Sentral ng Pilipinas.
12 
The Program shall provide financing start-up and access to credit for road
13 
transportation sector members and cooperatives.
14 
Sec. 14. Road Transportation Education. -  The Technical Education and Skills
15 
Development Authority (TESDA) is mandated to design and conduct short-course
16 
trainings on road transportation education. The courses shall focus on the following:
17 
(a) 
Basic driving skills;
18 
(b) 
Transportation laws, traffic signs, rules and regulations;
19 
(c) 
Safe driving practices;
20 
(d) 
Automotive troubleshooting 
to 
develop 
a 
competent and
21 
responsible driver; and
22 
(e) 
Design, assembly, manufacture, and operation of various types
23 
of road transportation.
24 
The Department of Education (DepEd) is hereby required to incorporate in the
25 
high school curriculum a subject that aims to provide basic driving skills and
26 
education on traffic laws, rules and regulations.
27 
The LTO is hereby mandated to classify all drivers' license, whether non-
28 
professional, professional or commercial driver's license, according to the types of
29 
vehicles to be driven and require all applicants for professional driver's license to
30 
undergo a commercial driver's license training from TESDA-accredited training
31 
schools and pass the written and practical examinations before the issuance of a
32 
license.


1 
Sec. 15. Establishment o f Free Common Transportation Terminal Facilities. -
2 
Every Local Government Unit is mandated to establish free common transportation
3 
terminal facilities in order to provide more convenient access to mass transportation
4 
system to the commuting public.
5 
Sec. 16. Allocation o f Funds. -  Ten percent (10% ) of the funds generated from
6 
the Motor Vehicle User's Charge shall be allocated to implement this Act to be
7 
provided in the annual General Appropriations Act.
8 
Sec. 17. Im plementing Rules and Regulations. -  Within ninety (90) days from
9 
the effectivity of this Act, the DOTr in coordination with the DOJ, DepEd and TESDA,
10 
shall formulate rules and regulations to effectively implement the provisions of this
11 
Act.
12 
Sec. 18. Separability Clause. -  If any portion or provision of this Act is declared
13 
unconstitutional, the remainder of this Act or any provisions not affected thereby
14 
shall remain in force and effect.
15 
Sec. 
19. Repealing Clause. -  Any law, presidential decree or issuance,
16 
executive order, letter of instruction, rule or regulation inconsistent with the
17 
provisions of this Act is hereby repealed or modified accordingly.
18 
Sec. 20. Effectivity. -  This Act shall take effect fifteen (15) days following its
19 
complete publication in the Official Gazette or in at least two (2) newspapers of
20 
general circulation.
Approved,