Sl,XTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
'1] 
JIll 
4 
!l1t '14 
,_-
nit;· 
S. No. ----4-46 
Introduced by Senator Ralph G. Recto 
Explanatory Note 
There are 83.25 Million (90%) of our 92.34 Millionl population who constitute the riding 
public. On the other hand, the total number of motor vehicles registered with the Land Transportation 
Office (LTO) in 2012 reached 7.46 Million, of which 969,784 (l3%i are public utility vehicles. 
Our nation's transport system relies heavily on the road network which handles approximately 
90% of passenger movement and 50% of freight movement,3 serving priority production areas and 
population centers. 
. 
It seems that the 31,242.377 kilometers of our national roads4 particularly those in Metro 
Manila cannot handle the increasing volume of motor vehicles and riding public. Furthermore, traffic 
accidents and flooding due to poor road infrastructures add to the problem of road congestion in our 
major cities. 
A sound infrastructure system is one of the most important assets of a country. An extensive 
road network is crucial to economic and social development. 
Under the second pillar of the Global Competitiveness Index6, the Philippines ranks a mediocre 
l13tl1 out of 142 countries for the overall quality of its infrastructure and with a value of3.4. Similarly, 
it ranks 100th in the quality of roads with a value of 3.1 wherein 7 is considered as extensive and 
efficient by international standards while I is extremely underdeveloped. 
Based on the 2013 Budget of Expenditures and Sources of Financing, the balance from the 
collections from Motor Vehicle User's Charge (MVUC) as of December 31, 2011 amounts to P8.82 
Billion while the estimated revenues for 2013 amounts to P 11.3 8 Billion? 
This measure's main objective is to integrate President Benigno Simeon C. Aquino's Social 
Contract with the Filipino People, as more particularly provided in the Philippine Development Plan 
2011-2016's third strategy "to invest massively in infrastructure" 
In order to balance the interests of stakeholders, this bill seeks to amend R.A. No. 8794, 
otherwise known as the MVUC Act. It aims to optimize the use of the MVUC Fund by allocating a 
portion of the monies collected from vehicles to the construction, improvement and rehabilitation of 
our mass transit system. Under this proposed measure, the 80% Special Road Support Fund is reduced 
to 25% while the 7.5% Special Road Safety Fund and 7.5% Special Vehicle Pollution Control Fund 
I National Statistics Office, "2010 Census of Population and Housing Highlights, 4 April 2012", 
http://www.census.gov.phicontentl20 I O-census-population-and-housing-reveals-philippine-population-9234-million 
(accessed II March 2013) 
2 Land Transportation Office. Annual Report 2012.25 January 2013. 
3 National Economic and Development Authority, NEDA MTPDP 2004-2010': Chapter 6: Infrastructure (2004)" 
http://www.neda.gov.phiplans and reportslMTPDPlUpdated MTPDP%202004%20to%202010.pdf 
4 Department of Public Works and Highways. 2010 Road Network: National Road Length by Classification, Surface Type 
and Condition 
5 Road Board Annual Report 2008, p. 10. 
• 2011 World Economic Forum, "The Global Competitiveness Report 2011- 2012" 
7 Department of Budget and Management, "Budget of Expenditnres and Sources of Finanoing (Tables): Fiscal Year 2013" 


were repealed so that the 5% Special Local Road Fund is increased to 25% and 50% goes to the 
Special Mass Transit System Support Fund. 
The approval of this bill will address the need to improve transportation infrastructure in our 
country including much delayed mass transport systems that would translate into increased 
productivity and a healthier Philippine population. 
With the foregoing considered, the approval ofthis bill is hereby requested. 
mj1Ha 


SIXTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES) 
First Regular Session 
) 
"13 
JUL -4 1110:13 
SENATE 
S. NO.A.1J:; 
Introduced \}y Senator Ralph G. Recto 
AN ACT 
CREATING 
THE 
SPECIAL 
MASS 
TRANSIT 
SYSTEM 
SUPPORT 
FUND, 
REALLOCATING THE DISPOSITION OF MONIES COLLECTED FROM THE 
MOTOR VEHICLE USER'S CHARGE, AMENDING FOR THE PURPOSE SECTIONS 7 
AND 8 OF REPUBLIC ACT NO. 8794, OTHERWISE KNOWN AS THE "MOTOR 
VEHICLE USER'S CHARGE ACT OF 2000" 
Be it enacted by the Senate and the House of Representative of the Philippines in 
Congress assembled: 
1 
SECTION 1. Section 7 of Republic Act (R.A.) No. 8794, otherwise known as the 
2 
"Motor Vehicle User's Charge Act of 2000" is hereby amended to read as follows: 
3 
"SEC. 7. Disposition of Monies Collected. - All monies collected under this Act 
4 
shall be earmarked solely and used exclusively (l) for road maintenance and the 
5 
improvement of road drainage AND[,] (2) for the [installation of adequate and efficient 
6 
traffic lights and road safety devices, 
and (3) 
for air pollution control.] 
7 
CONSTRUCTION/ IMPROVEMENT/ REHABILITATION OF OUR MASS TRANSIT 
8 
SYSTEM, INCLUDING THE ACQUISITION OF ROAD RIGHT-OF-WAY FOR 
9 
SUCH PROJECTS. 
10 
All such monies collected shall be deposited in [four (4)] THREE (3) special trust 
11 
accounts in the National Treasury, namely: (1) Special Road Support Fund; (2) Special 
12 
Local Road Fund; AND (3) [Special Road Safety Fund; and (4) Special Vehicle Pollution 
13 
Control Fund.] SPECIAL MASS TRANSIT SYSTEM SUPPORT FUND. The 
14 
distribution of collections under this Act shall be as follows: 
15 
1. TWENTY FIVE PERCENT (25%) [Eighty percent (80%)] shall be allotted to 
16 
and placed in the Special Road Support Fund; 
17 
2. TWENTY FIVE (25%) [Five percent (5%)] shall be allotted to and placed in 
18 
the Special Local Road Fund; AND 
19 
[3. Seven and one-half percent (7.5%) shall be allotted to and placed in the 
20 
Special Road Safety Fund; and] 
21 
[4. Seven and one half percent (7.5%) shall be allotted to and placed in the 
22 
Special Vehicle Pollution Control Fund.] 
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1 
3. FIFTY PERCENT (50%) SHALL BE ALLOTTED TO AND PLACED IN 
2 
THE SPECIAL MASS TRANSIT SYSTEM SUPPORT FUND. 
3 
The Special Road Support Fund[,] AND the Special Local Road Fund [and the 
4 
Special Road Safety Fund] shall be under the DPWH, whereas the [Special Vehicle 
5 
Pollution Control Fund] SPECIAL MASS TRANSIT SYSTEM SUPPORT FUND shall 
6 
be under the DOTC. 
7 
"xxx," 
8 
SEC. 2. Section 8 ofR.A. No. 8794 is hereby amended to read as follows: 
9 
"SEC. 8. The [four (4)] THREE (3) special funds established under this Act shall 
10 
be distinct and separate from and in addition to any appropriation authorized and granted 
11 
yearly to the DPWH and the DOTC to cover expenditures for the identified objects of 
12 
expenditures under this Act. Congress shall continue to appropriate an amount in the 
13 
General 
Appropriations 
Act 
for 
road 
maintenance 
of the 
DPWH 
ANI]) 
14 
CONSTRUCTION, IMPROVEMENT AND REHABILITATION OF THE MASS 
15 
TRANSIT SYSTEM OF THE DOTC: Provided, however, That any savings for each year 
16 
out of such appropriation shall revert to the General Fund. Any savings from the special 
17 
funds created herein shall accrue to these respective special funds." 
18 
SEC. 3. Implementing Rules and Regulations. - The secretaries of the DPWH and the 
19 
DOTC shall jointly promulgate the necessary implementing rules and regulations within sixty 
20 
(60) days from the effectivity of this Act: Provided, That the secretary of the DPWH shall 
21 
prepare the portion of their implementing rules and regulation pertaining to the Special Road 
22 
Support Fund and the Special Local Road Fund, and the Secretary of the DOTC shall prepare the 
23 
portion of the implementing rules and regulation pertaining to the Special Mass Transit System 
24 
Support Fund. 
25 
SEC. 4. Separability Clause. If any provision of this Act is declared unconstitutional or 
26 
invalid, other parts or provision hereof not affected thereby shall continue to be in full force and 
27 
effect. 
28 
SEC. 5. Repealing Clause. All other laws, orders, decrees, issuances, circulars, rules and 
29 
regulations or parts thereof which are inconsistent with any of the provisions of this Act are 
30 
hereby repealed or modified accordingly. 
31 
SEC. 6. EffectiVity Clause. This Act shall take effect fifteen (15) days from the date of 
32 
publication in the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved, 
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