Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

EIGHTEENTH CONGRESS
First Regular Session

3619
HOUSE BILL NO.

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

EXPLANATORY NOTE

The transportation industry has always been a major cornerstone in national development.
An efficient transport system ensures the efficient movement of goods promotes economic
activity in both rural and urban areas and encourages the flow of investment that would
surely enhance our country's economic growth.

The vision for the Philippine Transport System was initially drawn from the declaration of
policy in the creation of the Land Transportation Regulatory Board (“LTFRB") created
through Executive Order No. 202, series of 1987 and Land Transportation Office (“LTO”)
created by virtue of Executive Order No. 125 and as amended by Executive Order No. 226
dated July 25, 1987. However, important considerations should be embarked on to create a
central agency that will consolidate the functions of the LTO and LTFRB, in order to avoid
confusion as to which agency is tasked to maintain land transportation law and order in the
Philippines.

Further, a more comprehensive transportation policy needs to take into account the varied
and complex areas in the land transportation industry. Existing policies affect
transportation in different ways. Some policies are inadequate, ineffective and are already
obsolete.

As we move towards progress, we need a Land Transportation Authority that will address
the challenges that we are facing today.

In view of the foregoing, the Approval of this Bill is earnestly sought.

FRED D. VARGAS


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines

EIGHTEENTH CONGRESS
First Regular Session

3619

HOUSE BILL NO.

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

AN ACT
CREATING THE LAND TRANSPORTATION AUTHORITY REPEALING FOR THE
PURPOSE EXECUTIVE ORDER NO. 202 AND EXECUTIVE ORDER NO.226, WHICH
(CREATED THE LAND TRANSPORTATION AND REGULATORY
BOARD AND LAND TRANSPORTATION OFFICE RESPECTIVELY

Be it enacted by the senate and House of Representatives of the Philippines in Congress

assembled

ARTICLE!

CREATION, POWERS AND FUNCTIONS

SECTION 1. Short Title. - This act shall be known as the "Land Transport Act of 2019."

SECTION 2. Policy and Objectives. - The State recognizes that land transportation is a
vital and integral aspect of Philippine society and its economy. Given that itis vested with
public interest, it is the duty of the State to ensure safe, reliable, efficient, adequate,
modern, well-equipped, economic, and modern land transportation service.

1112

SECTION 3. Applicability. - This Act shall apply to all public land transportation entities
in the Philippines

SECTION 4. Land Transport Authority. - The Land Transportation Authority
(“LTA") 15 is hereby created which shall replace the Land Transportation Regulatory
Board 16 (“LTFRB") created through Executive Order No. 202, series of 1987 and Land 17
Transportation Office ("LTO") created by virtue of Executive Order No. 125 dated 18
January 20, 1987 and Executive Order No. 125-A dated April 13, 1987, as amended by 19
Executive Order No, 226 dated july 25, 1987. The Authority shall be an attached agency 20


of the Department of Transportation and shall absorb the powers and functions of the 21
LTFRB and the LTO.

SECTION 5. Powers and Functions of the Land Transport Authority. - The
Authority shall have the following powers function:

a. Prepare the National Land Transportation Development Program which will provide a
comprehensive roadmap for transport development initially covering Metro Manila, Metro
Cebu and Metro Davao and all other Urbanized Cities and municipalities through the
following but not limited to: traffic management, construction of expressways. both
intercity and urban areas, improvement of bus and jeepney services, rationalized route
structure, improved terminals and interchange facilities and proposed feasibility studies to
the viability of a suburban railway system and integration of the fare structure and
ticketing system between routes as well as modes.

b. To evaluate and package projects and investment programs; and for this purpose, may
call on any agency or organization whether public or private whose development plans
include land transportation as an integral part thereof, to participate in the preparation
and implementation of such programs;

¢. To establish emission control and standards, Road Safety and Inspection
and Maintenance to achieve a smoke-free, accident-free and effective road safety
management system, and to establish at least one (1) Motor Vehicle Inspection System in
each Region, initially, which will determine compliance with emission controls, standards,
and road worthiness of all Public and Private Vehicles;

d. To formulate strategies towards vehicular modernization and the establishment of a
sustainable transport system. The Authority may grant incentives such as the grant of
discount to registration fees to vehicles that use electric, other emission free energy
sources or other forms of sustainable transport;

e. Enter into contracts with domestic and foreign companies for services and products duly
approved in the National Land Transportation Development Program as determined by
National Economic and Development Authority and the Department of Transportation.

{. Promulgate, administer and enforce standards of measurements, designs, and rules and
regulations requiring owners of motor vehicles and operator of public land transportation
services to equip, install and provide in their utilities and in their stations such devices,
equipment, facilities and operating procedures and techniques as may promote safety,
protection, comfort and convenience to persons and property in their charge, as well as the
safety of persons and property within their areas of operation;

g. To prescribe fines and regulate routes of service, economically viable capacities and
gones or areas of operation of public land transportation services provided by motorized


vehicles in accordance with the public land transportation development plans and
programs approved by the Department of Transportation;

h. To issue, amend, revise, suspend or cancel Certificates of Public Convenience or permits
authorizing the operation of public Land Transportation services provided by motorized
vehicles, and to prescribe the appropriate terms and conditions therefore;

i. To order the impounding of motor vehicles and confiscation of plates or the arrest of
violators of laws, rules and regulations governing land transportation

j. To determine, prescribe and approve and periodically review and adjust, reasonable
fares, rates and other related charges, relative to the operation of public land
transportation services provided by motorized vehicles;

k. To issue preliminary or permanent injunctions, whether prohibitory or mandatory, in all
cases in which it has jurisdiction, and in which cases the pertinent provisions of the Rules
of Court shall apply;

|. To punish for contempt of the Authority both direct and indirect, in accordance with the
pertinent provisions of, and the penalties prescribed by the Rules of Court;

M. To issue subpoena and subpoena duces tecum and to summon witnesses to appear in any
proceedings of the Authority, to administer oaths and affirmations;

n. To conduct investigations and hearings of complaints for violation of the public service
laws on land transportation and of the Authority's rules and regulations, orders, decisions
and/ or ruling and to impose fines and/ or penalties for such violations;

0. To review motu proprio the decisions/ actions of the Regional Regulatory Office herein
created;

P. To promulgate rules and regulations governing proceedings before the authority and the
Regional Regulatory Office: Provided, that except with respect to paragraphs d, e, f and g
hereof, the rules of procedure evidence prevailing in the courts of law should not be
controlling and it is the spirit and intentions of said rules that the Board and the Regional
Regulatory Offices shall use every and all reasonable means to ascertain facts in its case
speedily and objectively and without regard to technicalities of law and procedures, all in
the interest of due process;

4g. To fix, impose and collect, and periodically review and adjust, reasonable fees and other
related charges for services rendered;

r, To formulate, promulgate, administer, implement and enforce rules and regulations on
land transportation public utilities, standard of measurements and/or design, and rules
and regulations requiring operators of any public land transportation service to equip,
install and provide in their stations such devices, equipment facilities and operating


procedures and techniques as may promote safety, protection, comfort and convenience to
persons and property in their charges as well as the safety of persons and property within
their areas of operation;

S. To coordinate and cooperate with other government agencies and entities concerned
with any aspect involving public land transportation services with the end in view of
effecting continuing improvement of such services;

t. To function and maintain a registry of all motorized vehicles and to issue driver's licenses
to deserving applicant drivers;

u. To coordinate with the Department of Education (“DEPED") in the licensing
and supervision of motorize vehicle driving schools, attendance of which shall be
mandatory for a first time non-professional license applicants and professional license
applicants and to all professional license renewal applicants;

v. To implement and enforce laws and policies on Land Transportation and deputize traffic
law enforcers;

w. To perform such other functions and duties as may be provided by law, as may be
necessary, or proper or incidental to the purposes and objectives of this Act.

SECTION 6. Board of Directors - The Authority's overall directions and thrusts shall
be provided and approved by the Board of Directors, hereinafter referred to as the Board
which shall be composed of the following:

(a) Chairman with the same rank, salary and privileges of an Undersecretary;

(b) One (1) member of the Board who is a member of the Bar and shall have engaged in the
practice of law in the Philippines for at least five (5) years;

(c) One (1) member with a degree in Public Transportation Planning;
(4) One (1) member should be a holder of a degree in engineering; and
(e) One (1) member a holder of a degree in management.

SECTION 7. Appointment of Members of the Board. - The members of the
Board shall be appointed by the President of the Philippines and shall serve for a term of
six (6) years, except that any person appointed to fill-in a vacancy shall serve only the
unexpired term of his/her predecessor in office.

All members of the Board shall be professionals of recognized competence and expertise. In
shortlisting the nominees for the members of the Board, the President of the Philippines
shall give utmost consideration to the nominees recommended by Secretary of
Transportation recommending at least three (3) names for every vacant position.


The salaries and compensation and other benefits of the Board shall be determined by the
Salaries Standardization Act and other pertinent laws.

SECTION 8. Supervision and Control over the Board. - The Secretary of
Transportation, through his duly designated Undersecretary, shall exercise administrative
supervision and control over the Authority

SECTION 9. Powers and Functions of the Board. - The Board as the governing and
policy-making body of the Authority and shall exercise the following powers and functions:

(a) Determine the organizational structure of the Authority, define the duties and
responsibilities of all officials and employees and adopt a compensation and benefit
scheme as determined by the Salaries Standardization Act;

(b) Prepare the annual and supplemental budgets, if necessary, of the Authority; and
(c) Submit an annual report on the operation and accomplishments of the Authority to
the President of the Philippines, Senate President, and Speaker of the House of

Representatives.

SECTION 10. Powers and Functions of the Chairman. - The Chairman shall
exercise the following powers and functions:

(a) Call and preside over the meetings of the Board and see to it that the policies, programs
and rules and regulations promulgated by the Board are properly implemented;

(b) Call on stakeholders in the formulation and implementation of a comprehensive and
integrated plan for the development of the Land Transport;

(c) Identify solutions to key issues and concerns, taking into account related risks, affected
parties and impact, in coordination with the Board and key stakeholders;

(d) Represent the Board in all dealings or transactions with other government agencies and
offices, and with the private sector;

(e) Accept, on behalf of the Authority, donations, contributions, grants and bequests or
gifts, in cash or in kind, from foreign governments, international agencies or organizations,
private entities or any individual for purposes that will realize the mandate of the
Authority; and

() Call on any government agency or office, LGUs and the host communities to assist the
Authority in addressing issues and concerns relating to the implementation of the
programs, projects and activities of the Authority.

SECTION 11. Executive Officers. - The Authority shall be managed by a Director
General with the rank, salary and qualifications equivalent to that of a Department
Assistant Secretary, who must have sufficient knowledge and background in land
transportation management. He/she shall be appointed by and shall serve at the pleasure
of the President and shall serve for a fixed term of four (4) years, unless sooner removed by
the President of the Philippines upon the recommendation of Board. The President shall act
upon any recommendation for removal of the Director General within 90 days from receipt
of the same.


The Director-General shall be assisted by four (4) Directors level IV with Salary Grade 28 for
Administration and Finance, Plans and Operations, Franchising, and Law Enforcement and
‘Adjudication. The Chiefs should preferably be a Career Executive Service Officer (CESO)
possessing at least ten (10) years of experience and practice in land transportation
management and administration.

SECTION 12. Powers of the Director-General. - As Chief Operating Officer of the
Authority, the functions and powers of the heads of the LTO and LTFRB, as well as other laws
otherwise not expressly defined in this Act, are now transferred and vested to the Director-
General of the Authority, including, but not limited to, the following

(a) Implement, enforce and apply the policies, programs, guidelines, procedures, rules and
regulations promulgated, prescribed, issued and adopted by the Authority

(b) Manage the affairs of the Authority and ensure the smooth operational efficiency of the
national land transportation system;

(c) Sign contracts, approve expenditures and appoint and discipline employees below the
level of Presidential appointees;

(d) Submit an annual budget to the Board not later than one (1) month before the
commencement of the ensuing year;

(e) Undertake research, studies, investigations, projects and other related activities, and
submit reports and recommendations to the Board for its information and or approval;
engage the services of experts/consultants either in full time or part time basis as may be
required in the performance of his functions and duties as maybe determined by him,
subject to the approval of the Board;

(8 Perform such other functions and duties as the Board may assign from time to time.

SECTION 13. Retirement Package for the Chairman and Director General- The
Chairman and the Director General of the Authority shall, upon completion of their term or
upon becoming eligible for retirement under existing laws, be entitled to the same
retirement benefits and the privileges provided for the Presiding Justice and Associate
Justices of the Supreme Court, respectively.

SECTION 14, Enhancement of Technical Competence. - The Authority shall
establish rigorous training programs for its staff for the purpose of enhancing the technical
competence of the Authority in the following areas: evaluation of technical performance
and monitoring of compliance with service and performance standards, performance based
rate-setting reform, environmental standards and such other areas as will enable the
Authority to adequately perform its duties and functions. The same shall be appropriated
in the General Appropriations Act


SECTION 15. Staffing Pattern. The Director-General subject to the approval of
the Board shall determine the staffing pattern, the number of personnel and field offices of
the Authority, the functions of the central office staff, the regional and district offices;
define their duties and responsibilities and fix their qualifications, salaries and
other emoluments.

‘The Board shall act on the recommendation within (30) days from its submission,
otherwise, the recommendation shall be deemed approved and the same shall be
implemented within 90 days from approval thereof.

SECTION 16. Appointment and Discipline of Personnel. All officials of the
Authority, except those appointed by the President, shall be selected and appointed on the
basis of merit and fitness as established in a merit system program of the Authority
consistent with Civil Service laws and regulations.

SECTION 17. Decision of the Authority; Appeals and Review. - The Authority,
in the exercise of its powers and functions, shall sit and render its decision en banc. Every
decision, order, or resolution of the Authority must bear the concurrence and signature of
at least majority of its member thereof. A majority of the number of members as fixed in
this law shall constitute a quorum for the transaction of business, and every decision of at
least a majority of the directors present at a meeting at which there is a quorum shall be
valid, except for the election of officers which shall require the vote of a
majority of all the members of the board

The decisions, order or resolution of the Authority shall be appealable to the Secretary
within thirty (30) days from receipt of the decision: Provided, that the Secretary may motu
propio review any decision or actions or the Authority before the same becomes final.

SECTION 18. Creation of the Regional Regulatory Offices. - There shall be a
Regional Regulatory Office in each of the administrative regions of the country which shall
be headed a Regional Director with Salary Grade 27 and rank of Director II

SECTION 19. Appeals. - The decisions, orders and resolutions of the Regional

Regulatory Offices shall be appealable to the Authority within thirty (30) days from receipt
of the decision.

ARTICLE I
LEGISLATIVE FRANCHISE AND
REGULATION OF PUBLIC UTILITY VEHICLES:
SECTION 20. Rationalization of Issuance of Franchises for PUB, PUVs, PUJs, taxis
and other similar services. - The Authority, in coordination with the National Economic

Development Authority ("NEDA"), Department of Interior and Local Government (“DILG"), and
other key stakeholders and associations shall conduct a Land Transportation Study to


determine the actual need for public transportation in the various routes to objectively
determine the actual number of public buses, jeeps, taxi's and other public utility vehicles as
well as TNVs needed by the public in a certain route, road, street, locality or area. This study will
serve as basis for the issuance of a Legislative Franchise.

SECTION 21. Franchise. - No person shall commence or conduct the business of
operating public transportation without first obtaining a franchise. Provided, that the
Authority has already determined and set the guidelines for the rationalization of the
Issuance of Franchises. Provided, further, that public transport entities found to
circumvent this provision through the use of corporate fiction shall have all their
franchises ipso facto revoked. The Authority, in granting a Certificate of Public Convenience
and Necessity ("CPCN"), upon the applicant's compliance with the Authority's
requirements, and the approved legislative franchise, may impose such conditions as to
duration and termination of the privilege, concession, or standard or technical aspects of
the equipment, rates, or service, not contrary to the terms of the franchise.

The Authority, however, shall not grant a subsequent CPCN for another area of service nor
extend the area service coverage of an entity which has not been satisfactorily compliant to
the terms and conditions of its original franchise

SECTION 22. Franchise Requirements. - The holder of such legislative franchise
issued should have the following basic requirements:

a. Should comply with the minimum amount of capitalization in order to ensure

that only those operators with adequate financial capacity are allowed to operate public
transport

b. For PUB - Minimum capitalization of Thirty Million Pesos (Php 30,000,000.00).

c. For PUJ, PUV, Taxi and other similar services - Minimum capitalization of Ten

Million Pesos (Php 10,000,000.00)

SECTION 23. Franchise Conditions. - The holder of such legislative franchise
issued should have the following conditions:

a.) The holder must comply with the constitutional and statutory requirements on
maximum foreign ownership throughout the duration of the holder's franchise

b,) To those holders which already have existing franchises, they are given a period of six
(6) months from the grant of legislative franchise within which to comply with the paid up
capital requirement.

c) The holder must have the adequate experience to operate and maintain its transport
units to ensure safety and efficiency. For this reason, the holder must have at least ten (10)
years of relevant experience as an operator, or working for an operator, of public transport
of good standing

d) The holder must also have the adequate technical and maintenance support facilities
capability to operate public transport. The holder must show proof of ownership of


enance building, inspection pit, garage, or terminals and other maintenance
les, sufficient in size, all of which must be devoted exclusively for public
transport activities. In addition, the applicants must show proof of ownership of the
mandatory and indispensable machines and equipment to sufficiently support the
maintenance requirement to operate taking into account the number of units the holder
hopes to operate.

e) The holder should maintain adequate personnel for its finance, administration,
operation and maintenance group or department. Such department cannot be outsourced
to contractors, or any other entity not directly connected to the holder, particularly the
maintenance personnel.

{,) Legislative franchise cannot be sold or transferred, whether directly or indirectly, to any
other entities. Provided further, that such holder of legislative franchise may offer its
business to go public through Initial Public Offering in the Philippine Stock Exchange (PSE)
subject to the qualifications and requirements of the PSE.

8.) The Authority, in pursuant to its authority to grant Certificate of Public Convenience and
Necessity ("CPCN") to the qualified holders of legislative franchise may impose such other
conditions necessary for the protection of the riding public and the interest of the
government, such as but not limited to the duration and termination of privilege,
concession, financial and technical capability, infusion of additional capitalization,
disciplinary sanctions, technical standards of equipment to be used, fare rate, or kind of
service, and any other aspects which the Authority deems it necessary to regulate.

h) No subsequent CPCN shall be granted for another service area or to extend the area of
service coverage of an entity which has failed to satisfactorily comply with its commitment
to the Authority to provide a particular service in the prior authorized area.

SECTION 24. Administrative Permits. Notwithstanding the provision of any law to
the contrary, the issuance of permits to operate public utility vehicles shall be
administratively processed based on rules and regulations/guidelines that the Authority
shall promulgate within sixty (60) days, subject to the approval of the Board. Without
prejudice to the provisions of R.A. 7160, otherwise known as the Local Government Code of
1991, the permit to operate public utility vehicles shall be issued by the Authority.

SECTION 25. Requirement for Parking Spaces or Terminal Facility- Any
prospective operators, or operators with residence or business address in Highly Urbanize
Cities, shall be required to execute an affidavit which shall be acknowledged before a
notary public, attesting to the availability of a terminal facility The affidavit executed by
the operator shall be presented to the Legislative Franchise Committee as a pre-requisite
for registration. No franchise permit shall be issued for operators unless the owner thereof
submits an affidavit that parking spaces and facilities shall be made available to their units.

SECTION 26. Operation of Public Utility Vehicles. - No motor vehicle shall be
operated as a public conveyance or for hire without possessing a valid and subsisting


franchise and/or permits issued by the Authority All existing franchises and permits
issued prior to the effectivity of this Act shall remain valid up to the date of its expiry as
indicated in the certificate or permit. Any subsequent transaction related thereto shall now
be processed and issued pursuant to the rules and regulations of the Authority.

SECTION 27. Rate Fixing. - For purposes of fixing of rates of public utility vehicles,
the Director-General shall undertake the necessary studies, after due consultation with the
involved sectors, and recommend the same to the Board for approval.

SECTION 28. Authority to Impose Penalties. - The Director-General is
empowered to impose penalties and sanctions in the form of cancellation, revocation,
suspension, fines and other forms of penalties allowable by law, or any combination
thereof, for violations of the terms and conditions of the permit. Subject to the approval of
the Board, the Director-General shall promulgate a set of guidelines containing the
administrative procedures in the imposition of sanctions, including the schedule of
penalties.

SECTION 29. Equality of Treatment in the Land Transport Industry. - Any
advantage, favor, privilege, exemption, or immunity granted under the existing franchises
of the current franchise holders, shall ipso facto become part of such franchises except
those which concern territorial coverage, duration and kind of service. As such, the same

will be accorded to the holders immediately and unconditionally

In case of suspension of unit due to vehicular accident, the suspension shall be imposed
only to the unit primarily involved in the accident. Any other units under the franchise will
not be affected unless the Authority, alter due notice and hearing, deems it necessary to
suspend the entire units within the franchise

ARTICLE Ill
ACCREDITATION OF TRANSPORTATION NETWORK COMPANIES

SECTION 30. Accreditation of Transport Network Companies (“TNC”) - A TNC shall
mean as an “organization whether a corporation, partnership, or sole proprietor that
provides pre-arranged transportation services for compensation using an internet-based
digital technology application or digital platform technology to connect passengers
with drivers.

The Certificate of TNC Accreditation shall be granted to TNC's providing internet based
digital technology application or digital platform technology to facilitate transportation of
passengers. TNCs, prior to its application for accreditation by the Authority, must first
secure a franchise from Congress.


SECTION 31. Application for Accreditation - Application for the Issuance of a
Certificate of Accreditation shall be made in writing on a form provided by the Authority,
and signed and sworn to by the applicant, or if the applicant is a juridical entity, by its duly
authorized representative. Each application, in addition to other documents that are
required, shall submit the following
a.) Business permit or Certificate of Incorporation duly issued by Department of Trade and
Industry or Security and Exchange Commission;

b,) Certificate of registration duly issued by the Bureau of Internal Revenue (BIR);

c) Business model proposal

<.) Business Permit duly issued by the Local Government where the applicant's principal
office is located;

e.) Terms of Service for Passengers;

£) Terms of Service for TNVS Operators;

8) Proposed Fare rates and/or Service Charges; and

h,) Proof of Applicant's Financial Capability to pay all judgment and awards that may be
rendered for any cause arising out of the operation of a TNC business

Asa Transport Network Company (TNC), an owner/operator must pay an accreditation fee
to get a 2-year certificate of accreditation from the committee and secure a franchise by
submitting the necessary legal documents before starting operations. Non-compliant
vehicles will be caught and apprehended.

ARTICLE lV
TRANSITORY PROVISIONS

SECTION 32. Abolition. The Land Transportation Office and the Land Transportation
Franchising and Regulatory Board, the Traffic Enforcement Group of the Metropolitan
Manila Development Authority are hereby abolished. All properties, assets and liabilities,
all powers, functions and duties, rights and courses of actions, vested by law or exercised
by said abolished offices and its predecessors are hereby transferred to the Authority.

SECTION 33. Early Retirement Incentive Program. - The Board shall organize the
Authority prioritizing the absorption of incumbent officers and employees from the
abolished agencies, as far as practicable.

All affected Officers and Employees who are qualified to receive retirement benefits under
Republic Act Nos. 1616 and 660 shall be entitled to an additional one (1) month salary for
every year of service.

Any Officers or Employees may avail of the same benefits as provided by the immediately
preceding paragraph; provided that they voluntarily separate or retire from the service
during the transition period; Provided, further, that they are qualified to receive retirement
benefits under RA 1616 and RA 660.



“Affected Officers and Employees” as defined by this Act, shall be all Officers and
Employees who are involuntarily removed or separated from the service due to the
abolition of their respective agencies by this Act.

SECTION 34. Organization of the Authority. - Any officer/employee who availed
the benefits of the foregoing provisions or who would opt to retire or be separated as a
result of the rationalization efforts of the LTO and LTFRB shall not qualify for
reemployment and appointment in any agency of the Executive Branch, including
GOCCs/Government Financial Institutions (GFIS), except in educational institutions and
hospitals, within a period of seven (7) years from the date of retirement, separation or
resignation.

SECTION 35. Saving Clause. - Unless otherwise provided in this Act, rights or
privileges vested or acquired under the provisions of any other law, rules and regulations
prior to the effectivity of this Act shall remain in full force and effect.

SECTION 36. Implementing Rules and Regulations. - The Authority shall adopt rules
and regulations to implement the provisions of this Act within sixty (60) days from the date
of its approval.

SECTION 37. Congressional Oversight Committee. - A Congressional Oversight
Committee, hereinafter referred to as the "Committee", is hereby constituted in accordance
with the provisions of this Act. The Committee shall be composed of the Chairman of the
Senate Committee on Public Services and Chairman of the House Committee on
Transportation and four (4) additional members from each House to be designated by the
Senate President and the Speaker of the House of Representatives, respectively. The
Committee shall, among others, in aid of legislation:

(a) Monitor and ensure the proper implementation of this Act;

(b) Review the collection performance of the Authority;

(c) Review the proper implementation of the programs of the Authority and the
use of its collected fund.

In furtherance of the hereinabove cited objectives, the Committee is empowered to require the
Authority to submit all pertinent information including, but not limited to, its collection
performance data and its annual audited financial statements certified by the Commission on

Audit.

The Congressional Oversight Committee shall be in existence for a period of five (5) years, and
thereafter, its oversight functions shall be exercised by the Senate Committee on Public

Services and the House Committee on Transportation acting separately.

ARTICLE VI
FINAL PROVISIONS


SECTION 38. Separability Clause. - |{ any part or provision of this Act shall be
declared unconstitutional, the other parts or provisions hereof which are not affected
thereby, shall continue in full force and effect

SECTION 39. Repealing Clause. - Al) laws, decrees, executive orders, rules and
regulations or parts thereof inconsistent with the provisions of this Act are hereby repealed or
modified

SECTION 40. Effectivity. - This Act shall take effect fifteen (15) days after its
complete publication in at least newspapers of general circulation

SECTION 41. Transitory Provision - All land transport entities which are lawfully
operating at the time of the effectivity of this Act, may continue their operations under the
terms and conditions approved by the LTFRB, provided that said transport services and
public transport services and public transport entities shall secure a legislative franchise
within two (2) years from the effectivity of this Act. OC

Approved,