Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 4466

Introduced by Representative ANA CRISTINA SIQUIAN-GO-

AN ACT
ABOLISHING THE ROAD BOARD AND TRANSFERRING ITS POWERS AND
FUNCTIONS TO THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS AND
THE DEPARTMENT OF TRANSPORTATION AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 8794, THE LAW IMPOSING THE MOTOR VEHICLE USER’S
CHARGE

EXPLANATORY NOTE

The Road Board was organized by virtue of Section 7 of Republic Act No.
8794, the law which institutionalized the imposition of the Motor Vehicle User's
Charge. As intended, the Road Board was created to implement the prudent and
efficient management and utilization of the special funds collected by the imposition
of the Road User's tax. The special funds are to be strictly earmarked solely and
used exclusively for road maintenance and improvement of the road drainage,
installation of adequate and efficient traffic lights and road safety devices and for air
pollution control.

The sixteen year history of the Road Board however is defined by recurring
complaints of inefficiency and imprudent utilization and use of the special funds
entrusted to the board, It was also repeatedly pointed out that the Road Board has
practically functioned as just a burdensome bureaucratic layer as the projects
pursued have been implemented anyway by the DPWH and the DOTr. Worse, the
utilization of the special funds by the Road Board was regularly evaluated as tainted
with anomalies and profligacy.

The Road User's taxes collected were recorded at P90.72 Billion as of
December 2012. In various audits of the Commission on Audit however, it was found
out that the use and utilization of the special funds have not been efficient and
judicious. The COA has uncovered that at least a billion of the funds had been
diverted to cover salaries, allowances, maintenance and other operating expenses of
the Board, In 2013 alone, irregularities attended the dispensation and utilization of at
least P1.66 Billion of the special funds.


The COA has also recorded discrepancies of almost P1.5 Billion in the
recorded collections from 2001 to 2010 and in the actual amount deposited to the
National Treasury. These irregularities and illegal utilization of the special funds
could have been prevented had it been mandated that the funds will go directly to
the implementing agencies. The additional bureaucratic layer has only added
another occasion for graft and corruption to thrive.

In view of the above, the immediate passage of this Bill is earnestly sought

ANA CRISTINA SIQUIAN-GO
Representative
2" District, Isabela


Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 4466

Introduced by Representative ANA CRISTINA SIQUIAN-GO

AN ACT
ABOLISHING THE ROAD BOARD AND TRANSFERRING ITS POWERS AND
FUNCTIONS TO THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS AND.
THE DEPARTMENT OF TRANSPORTATION AMENDING FOR THE PURPOSE
REPUBLIC ACT NO. 8794, THE LAW IMPOSING THE MOTOR VEHICLES
USER’S CHARGE

Be it enacted by the Senate and 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 improved of the 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:

1, Eighty percent (80%) shall be allotted to and placed in the Special
Road Support Fund;

2. Five percent (5%) shall be allotted to and placed in the Special

Local Road Fund;

3. Seven and one half percent (7.5%) shall be allotted to and placed

in the Special Vehicle Pollution Control Fund;

The Special Road Support Fund, the Special Local Road Fund shall be
under the DPWH; whereas-the Special Vehicle Pollution Control Fund

shall be under the DOTr.

Seventy percent (70%) of the Special Road Support Fund shall be used
for the maintenance of, and the improvement of drainage of national
primary roads. The remaining thirty- percent (30%) thereof shall be
allocated and use for the maintenance, and improved of drainage of

national secondary roads throughout the country.

The cost of installation of adequate and efficient traffic lights and road
safety devices throughout the country, where such traffic lights and safety

devices are needed, shall be taken from the Special Road safety devices.

[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
Department of Transportation and Communication, as ex officio members.
The remaining three (3) members shall come from transport and motorist
organization, 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. Section 9 of Republic Act No. 8794 is hereby amended to read

as follows:

Section 9. Rules and Regulations. - The secretaries of the
Department of Public Works and Highways and the Department of
TRANSPORTATION (DOT?) shall jointly promulgate within thirty (30) days
from the 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 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 regulation pertaining to the Special
Road Support Fund, the Special Local Road Fund, and the Special Road
Safety Fund, and the Secretary of the DOTr shall prepare the portion of

the implementing rules and regulation pertaining to the collection of the


MVUC staffed under Section 3 of this Act and on the disposition of the
monies acquiring to the Special Pollution Control Fund. Provided further,
THAT THE SECRETARIES OF THE DPWH AND THE DOTR ARE
PROSCRIBED 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. Repealing Clause — All laws, decrees, executive orders, letters
of instructions, rules and regulations, or parts thereof, which are inconsistent with

this Act are hereby repealed, amended, or modified accordingly
SECTION 4. Separability Clause — If any provision of this act is judicially
declared invalid or unconstitutional, the remaining provisions of this Act not affected

thereby shall continue to be in full force and effect.

SECTION 7. Effectivity Clause — This act shall take effect fifteen (15) days

following its publication in two (2) newspaper of general circulation

Approved