Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

435

House Bill No. _

Introduced by Hon. Rodolfo G. Biazon

EXPLANATORY NOTE

Presidential Decree No. 1894, issued by then President Ferdinand E, Marcos in 1982,
granted the Toll Regulatory Board (TRB) the jurisdiction and supervision over the Philippine
National Construction Corporation (PNCC) ~ formerly the Construction and Development
Corporation of the Philippines (CDCP) — which holds the franchise or the right, privilege, and
authority to construct, maintain and operate the North and South Luzon Expressways, the
Metro Manila Expressway, as well as any and all such extensions, linkages, or stretches and
the toll facilities appurtenant thereto.

Such jurisdiction and supervision includes the approval of the toll that the PNCC will
charge the users of the expressways. Section 8 of PD No. 1894 states that, “The Toll
Regulatory Board shall have the authority to approve such initial toll rates without the
necessity of any notice and hearing.” Section 9 thereof states, “Any adjustment in the then
current toll rate(s) resulting from the application of the formula ... shall be published once by
the GRANTEE in a newspaper of general circulation not later than November 30 of each year
and (ii) be enforceable and collected by the GRANTEE effective on the first day of January
of the immediately succeeding year.”

This bill seeks to require the TRB to conduct public hearings prior to the approval of
initial toll rates of any such infrastructure that may yet be constructed, or any proposal to
increase the toll rates of the existing ones.

Though declared to still be a private corporation by a Supreme Court decision in the
case of PNCC versus Pabion and Ramiro, in G.R. No. 131715, December 8, 1999, as it was
organized pursuant to the Corporation Code, and previously — in 1998 ~ declared to be an
“acquired asset corporation” by Administrative Order No. 59, issued by then President
Corazon C. Aquino, the Philippine National Construction Corporation's majority
shareholders are government financial institutions. ‘This being the case, this bill also
implicitly appeals to the government to exercise its power, in cognizance of the current
economic situation, to render decisions that are more responsive to the call of the times.

In light of the foregoing, approval of this bill is eamestly sought.
FO @. BIAZON

Representative
Lone District, Muntinlupa City



Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City
‘SIXTEENTH CONGRESS
First Regular Session

435

House Bill No. __

Introduced by Hon. Rodolfo G. Biazon

AN ACT
REQUIRING THE TOLL REGULATORY BOARD TO CONDUCT PUBLIC
HEARINGS PRIOR TO THE APPROVAL OF TOLL RATES OR ANY INCREASE
THEREIN, AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE
NUMBERED EIGHTEEN HUNDRED NINETY-FOUR

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

Section 1, Section 8, Paragraph (b) of Presidential Decree No. 1894 is hereby
amended to read as follows:

“(b) For the Metro Manila Expressway and such extensions, linkages,
stretches and diversions of the Expressways which may henceforth be
constructed, maintained and operated by the GRANTEE, the GRANTEE shall
collect toll at such rates as shall initially be approved by the Toll Regulatory
Board. The Toll regulatory Board shall have the authority to approve such
initial toll rates [without the necessity of any notice and hearing] AFTER
DUE NOTICE AND PUBLIC HERAINGS ARE CONDUCTED FOR
THE PURPOSE. For such purpose, the GRANTEE shall submit for the
approval of the Toll Regulatory Board the toll propose to be charged the users.
‘After approval of the toll rate(s) by the Toll Regulatory Board and publication
thereof by the GRANTEE once in a newspaper of general circulation, the toll
shall immediately be enforceable and collectible upon opening of the
expressway to traffic use.

[Any interested Expressways use shall have the right to file, within a
period of ninety (90) days after the date of publication of the initial toll rate, a
petition with the Toll Regulatory Board for a review of the initial toll rate;
provided, however, that the filing of such petition and the pendency of the
resolution thereof shall not suspend the enforceability and collection of the
toll in question. The Toll Regulatory Board, at a public hearing called for the
purpose, after due notice, shall then conduct a review of the initial toll to
determine the propriety and basis thereof. Decisions of the Toll Regulatory
Board on petitions for review of the initial toll shall be appealable to the
Office of the President within ten (10) days from the promulgation thereof.

1


‘The GRANTEE may be required to post a bond in such amount and from such
a surety or sureties and under such terms and conditions as the Toll
Regulatory Board shall fix in case of any petition for review of, or appeal
from, decisions of the Toll Regulatory Board.

In case it is finally determined, after a review by the Toll Regulatory
Board or appeal therefrom that the GRAN not entitled, in whole or in
part, to the initial toll, the GRANTEE shall deposit in an escrow account the
amount collected under the approved initial toll rate and such amount shall be
refunded to Expressways users who had paid such toll in accordance with the
procedure as may be prescribed or promulgated by the Toll Regulatory
Board.]

Sec. 2. Section 9, Paragraph (b) (b) of the same law is hereby amended to read as
follows:

“(b) Any adjustment in the then current toll rates resulting from the
application of the formula and indicated in the aforesaid written statement
shall (i) be published once in a newspaper of general circulation not later than
November 30 of each year and (ii) SHALL BE SUBJECT TO THE
APPROVAL OF THE TOLL REGULATORY BOARD AFTER DUE
NOTICE AND PUBLIC HERAINGS ARE CONDUCTED FOR THE
PURPOSE AND SHALL be enforceable and collected by the GRANTEE
effective on the first day of January of the [immediately succeeding] year
FOLLOWING THE APPROVAL THEREOF.”

Sec. 3. Implementing Rules. ~ The Toll Regulatory Board shall formulate the rules
and regulations necessary for the effective implementation of this Act within sixty (60) days
from its effectivity.

Sec. 4. Repealing Clause. — All laws, presidential decrees, executive orders,
issuances, not consistent with this Act are hereby repealed or modified accordingly.

Sec. 5. Separability Clause. — If, for any reason, any section or provision of this Act is
declared unconstitutional or invalid, the other sections or provisions not affected thereby shall
remain in full force and effect.

See. 6. Effectivity. This Act shall take effect after publication in the Official Gazette
or in two (2) newspapers of general circulation.

Approved,