Republic of the Philippines

House of Representatives
Quezon City

NTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3855

Introduced by Hon. Anthony M. Bravo
COOP-NATCCO PARTYLIST

EXPLANATORY NOTE

AN ACT AMENDING SEC. 7 OF R.A 8794, ABOLISHING THE OFFICE OF ROAD BOARD, AND
‘TRANSFERRING ITS POWERS AND FUNCTION TO THE DEPARTMENT OF PUBLIC WORKS AND
HIGHWAYS (DPWH) AND TO THE DEPARTMENT OF TRANSPORTATION (DOTR)

Republic Act No, 8794 or the “Act Imposing a Motor Vehicle Users Charge on Owners of All
‘Typed of Motor Vehicles and for Other Purposes” created the Road Board to implement the proper
and efficient use of the special funds collected via Road Users Tax ("Road Fund), which were
earmarked solely and used exclusively for (1)Road maintenance and the improvement of road
drainage, (2) installation of adequate and efficient traffic lights and road safety devices and, (3) ait
pollution control,

Under See, 7 of R.A No. 8794 as well as its IRR, the MVUC Act mandated the establishment of
the 1) Road Board, 2) DPWH Road Program Office and 3) DOTC Special Vehicle Pollution Control
Fund Committee,

The Road Board is the implementing body of the MVUC and is composed of seven members
such as the Secretary of DPW as the Ex-Officio Head, the Secretaries of DOF, DBM and DOTC as Ex:
Officio Members, and 3 other members from transportation organizations recommended by DPWH
and DOTC,

‘The Road Board is mandated to 1) supervise projects and activities, 2) Impose control on
auditing and accounting procedures, 3) Monitor income and expenditures, 4) Approve and review
program of work and bidding procedures, 5) Monitor used of Special Funds and 6) Raise awareness
on MVUC Special Funds,

Latest available figure estimate the Road Fund collections at P112.5 Billion from 2001. up ta
2014. However COA in one of its report declared that there was failure to ensure the utilization of
the P 199 Million worth of motor vehicle inspection system (MVIS] equipment that were purchased
for the LTO. Instead, the Road Board financed infrastructure projects that were beyond its
mandated functions while other projects were either delayed or not implemented at all despite the
release of funds, the COA report said.

Road Board has yet to account for approximately P 415 Million in MVUC funds that had
been suspended and disallowed by the COA because of violations of the policies on the use of public
funds. It also noted that P 463 Million of the MVUC funds has remained unliquidatedfor more than

1


three years fter the funds were released to the Road board Secretariat, the DOTC naw the DOTr,
DPWH and LGUs.

The need to curb instances of fund misuse, misappropriation and general graft and
corruption in the agency necessitates no less than the abolition of this regulatory agency which
have been viewed by many as milking cow of some unscrupulous individuals. Its funds would be
better utilized if such are rechanneled to the DPWH and the DOTr which will both implement road
safety measures and projects.

In vie

v of the foregoing the immediate passage of this bill is earnestly sought.

HON. AN’ 'Y M. BRAVO


Republic of the Philippines

House of Representatives
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

Cn 8855

HOUSE BILL NO.

Introduced by Hon. Anthony M. Bravo
COOP-NATCCO PARTYLIST

AN ACT ABOLISHING THE ROAD BOARD CREATED BY VIRTUE OF REPUBLIC ACT NO. 8794
AND TRANSFERRING ITS POWERS AND FUNCTIONS TO THE DEPARTMENT OF PUBLIC
WORKS AND HIGHWAYS AND TO THE DEPARTMENT OF TRANSPORTATION AND.
COMMUNICATIONS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 8794

Be it enacted by the Senate and the 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
improvement of road drainage, (2) for the installation of adequate and efficient
traffic lights and road safety devices, and (3) for ait 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:

XXX

The Special Road Support Fund, the Special Local Road Fund, and the Special Road
Safety Fund shall be under the DPWH, whereas the Special Vehicle Pollution Control
Fund shall be under the DOTC.

XxX

[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 Transportation and Communications, as ex officio members.
The remaining three (3) members shall come from the transport and motorist


organizations 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. Rules and Regulations, ~ The Secretaries of the Department of Public Works and
Highways (DPWH) and the Department of Transportation and Communications (DOTC) shall jointly
promulgate within thirty (30) days from the effectivity of this Act, the rules and regulations to
implement and carry out the intent, objectives, purposes, and provisions of this Act, including such
structural and procedural improvement in the systems and agencies concerned as may be
necessary to ensure 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 regulations pertaining to the Special Road Support Fund, the Special
Local Road Fund, and the Special Road Safety Fund, and the Secretary of the DOTC shall prepare
the portion of the implementing rules and regulations pertaining to the collection of the motor
vehicle's user charge and on the disposition of the monies accruing to the Special Pollution Control
Fund, Provided further that the secretaries of the DPWH and the DOTC and 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.

SEI

CTION 3. — Separability Clause. ~ Should any proviston of this Act of part thereof be declared

invalid or unconstitutional, the other provisions or parts not affected thereby shall remain valid and
effective,

Repealing Clause, ~ Jer, and issuances, or portions thereof,
which are inconsistent with the provisions of this Act are hereby repealed, amended or modified
accordingly.

SECTION 5. _ Effectivity, « This Act shall take effect fifteen (15) days from its publication in two
(2) newspapers of general circulation.

Approved.