Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
PROVIDING FOR A JUST AND HUMANE PUBLIC UTILITY VEHICLE (PUV) 
MODERNIZATION PROGRAM, WITH TRANSITORY ASSISTANCE AND 
SERVICES RENDERED TO PUV DRIVERS, OPERATORS AND STAKEHOLDERS, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
The decline of the jeepney presents us a clear picture of the mismanagement of our 
transport development. The efforts to modernize the jeepney is necessary without 
even needing to explain. Any person who has seen one would readily see their 
absence of basic security features and failing brakes. Bald tires and toxic emissions 
are also fairly common. 
However, jeepney modernization attempts since the time of President Fidel V. Ramos 
have failed. It has been a tireless exchange between the government and over 
200,000 jeepney drivers and operators. 
This proposed measure seeks to strike a balance between the need safety, 
environmental soundness and preservation of livelihood. Jeepneys will now only be 
requires to replace their engines to make them Euro 4 compliant. Moreover, the 
government shall provide financial assistance which shall not be less than 10% of the 
price per unit, and the interest rate on loan amortization shall not exceed 4% 
diminishing annual interest considering the public nature of PUV services.  
In view of the foregoing, the immediate approval of this measure is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
July 26, 2021
5:59 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Third Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
PROVIDING FOR A JUST AND HUMANE PUBLIC UTILITY VEHICLE (PUV) 
MODERNIZATION PROGRAM, WITH TRANSITORY ASSISTANCE AND 
SERVICES RENDERED TO PUV DRIVERS, OPERATORS AND STAKEHOLDERS, 
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
Section 1. Short Title. – This Act shall be known as the "Just and Humane Public 
Utility Vehicles Modernization Act." 
Sec. 2. Declaration of Policy. – It is hereby declared the policy of the State, in 
accordance with the Constitution, that the right to travel shall not be impaired, be it 
due to lack of means, access, or capability to pay of the general public. Public 
transportation and mobility, therefore, is a sector that should be developed, 
modernized and sustained by the State based on principles of justice, equity and 
ecological sustainability. 
At the same time, the State acknowledges the transportation sector as both public 
service and enterprise. As an enterprise employing labor, deemed by law as the 
primary social economic force, the State must protect the rights of workers within the 
transportation service industry and promote their welfare. Towards this end, the State 
shall encourage the creation of a people-centered strategy that represents the core of 
economic and social development. It therefore ensures that the transportation sector 
develops and modernizes not just technologically, but also in accordance with 
principles of justice and equity, promoting full, productive employment and decent 
work for all. 
Sec. 3. Objectives. – This Act shall have the following objectives: 
(a) To make public land transportation safer, more comfortable, and 
environmentally sustainable for the riding public through the modernization of 
Public Utility Vehicles (PUVs) while ensuring that the security of tenure of 
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long-standing drivers in the PUV industry will be protected and that their right to 
work until retirement will not be compromised; 
 
(b) To provide a means of support to drivers who can no longer take part in the 
PUV sector due to various reasons, including those who choose to pursue work 
in a different sector and thus require retraining and reskilling; and 
 
(c) To guarantee genuine and fair competition, and a level playing field within the 
PUV sector. 
 
Sec. 4. PUV Modernization Program (PUVMP). – A PUV Modernization Program, 
herein referred to as "the Program" is hereby established in order to enhance the 
safety, efficiency and sustainability of public ground transportation. The Department 
of Transportation (DOTr), in consultation with other concerned agencies and 
stakeholders, shall develop and promulgate guidelines and policies for the phased 
transition from the current PUVs to standards-compliant vehicles. The DOTr shall 
also provide for consultation and policy-making spaces through which stakeholders in 
the process can provide recommendations and reform options to DOTr and other 
relevant government agencies. 
 
Sec. 5. Engine and Replacement Specification. –  
 
(a) PUVs tested and proven to be road-worthy by the DOTr and Department of 
Trade and Industry's Bureau of Philippine Standards (DTI-BPS) shall only be 
required to have engines replaced to be Euro 4 compliant; 
 
(b) The remaining budget under DTI's Comprehensive Automotive Resurgence 
Strategy (CARS) program shall be used to incentivize and support the creation 
and assembly of locally manufactured PUV units and parts; 
 
(c) Only emission testing centers duly authorized by the DTI, and which follow 
the standards set by the Department of Environment and Natural Resources 
(DENR) and DOTr shall be used in registering PUVs in regular emission testing; 
and 
 
(d) DOTr shall plan for a phased implementation of the program following a five 
(5) year transition period. 
 
 
Sec. 6. Financial Assistance. –  
 
(a) Government Subsidy - Government financial assistance provided to 
drivers/operators who elect to modernize shall not be lower than 10% of the price 
per unit to lighten the capital burden of modernization. 
 
(b) Loan Interest/Payment Options 
i. 
 
A tripartite mechanism involving government, financing institutions 
and  
 
PUV operators/owners shall be established to set policies for the 
loan 
 
 
program and other issues on implementation. Loan 
requirements shall  
be simplified and tailored to the current situation and 
standing of PUV   
 
drivers and operators. 


ii.
The interest rate on loan amortization shall not exceed 4% 
diminishing 
annual interest considering the mass/public nature of 
PUV services. 
iii.
The loan amortization period shall be at least fifteen (15) years; 
subject 
to re-computation once a driver/operator decides to shorten 
the said 
period or is able to pay in full before its maturity: Provided, 
that the total 
cost of the monthly amortization shall be proportional to 
the monthly 
income of a PUV driver or operator. 
Sec. 8. Compensation Option. – A driver who can no longer take part in the PUV 
sector due to the Program shall be given a reasonable amount of financial assistance 
to enable them to venture into other forms of livelihood. 
Sec. 9. PUV Sector Competitiveness Enhancement. – To prevent unwanted 
competition between drivers and operators planning on operating in the same area, a 
"first 
usage”/"first 
presence" 
policy 
shall 
be 
implemented. 
Long 
term 
existing/residential operators/drivers within a particular area shall be given priority in 
route assignment. 
Sec. 10. Appropriations. – The equivalent of twenty percent (20%) annual share on of 
the total gross collections of the Motor Vehicle User's Charge (MVUC) collected 
pursuant to Republic Act No. 8794, as amended, shall be utilized to fund this Act. The 
amount shall be indicated as a separate line item under the budget of the DOTr in the 
annual General Appropriations Act (GAA). 
Sec. 11. Implementing Rules and Regulations. – The Secretary of the Department of 
Transportation, in consultation with other relevant government agencies and transport 
sector groups, shall issue the rules and regulations necessary for the effective 
implementation of this Act within sixty (60) days of its effectivity; 
Sec. 12. Separability Clause. – If for any reason, any part or provision of this Act is 
declared invalid or unconstitutional, the remaining parts or provisions not affected 
thereby shall remain in full force and effect. 
Sec. 13. Repealing Clause. – All laws, executive orders, presidential decrees, rules 
and regulations or parts thereof contrary to or inconsistent with any provisions of this 
Act are hereby repealed, amended or modified accordingly. 
Sec. 14. Effectivity. – This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in two (2) national newspapers of general circulation. 
Approved,