NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES

House Bill ‘No. 3560

Introduced by Representative Ralph G. Recto

AN ACT
PROVIDING FOR A MAGNA CARTA FOR THE ROAD TRANSPORTATION
SECTOR

EXPLANATORY NOTE

‘The Philippine Constitution mandates the protection and enhancement of the
right of all people to human dignity and the reduction of social and economic
inequities. The State also guarantees the rights of all sectors, including those in the
road transportation industry, to participate in the policy and decision-making
processes affecting their rights and benefits as provided by law.

Transportation provides the physical link in every economic and social activity.
It is therefore legitimate and indispensable to safeguard an industry that is vital to
economic growth and social development. It plays a crucial role in everyone's life as
it meets the demand for the sustainable mobility of both people and goods."

For the past four decades, the perennial problems of the road transportation
industry remain unsolved. The high cost of fuel, abusive traffic law enforcers,
problems in the issuance of franchise of public utility vehicles, proliferation of
colorum vehicles, poor road conditions, traffic congestion, and air pollution

immensely affect the road transportation sector.

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This measure aims to provide for the institutionalization of the participatory
mechanisms for the road transportation sector by including at least one
representative from the sector in the governing boards of government

instrumentalities in the national and local level.

To empower and comprehensively protect the rights of the road
transportation sector, particularly the road transportation workers, the following
provisions are included in the proposed measure:

a) Creation of a Road Incident Complaints and Investigation Office;

b) Free legal assistance, counseling and representation for indigent members

of the road transportation sector; and

c) Mandatory enrollment of road transportation workers in institutions

providing employee benefits such as Social Security System, Philhealth
and Pag-IBIG Fund.

Likewise, the proposed legislation aims to promote and develop the road
transportation sector by providing short-course trainings to be designed and
conducted by the Technical Education and Skills Development Authority. The bill
requires the construction of a free common transportation terminal facilities and
creation of a One-Stop Transportation Services Office as well as the establishment of
a Road Transportation Surety Fund Program.

With the foregoing considered, immediate approval of this bill is requested.

RALP¥ G,

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NINETEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

- Nos 280

House Bill No.

Introduced by Representative Ralph G. Recto

AN ACT
PROVIDING FOR A MAGNA CARTA FOR THE ROAD TRANSPORTATION
SECTOR

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

Section 1. Title. — This Act shall be known as the “Magna Carta for the Road
Transportation Sector Act”.

Sec. 2. Declaration of Policy. — It is the declared policy of the State to
guarantee the rights of those in the road transportation industry to participate in the
policy and decision- making processes affecting their rights, welfare and privileges.
The State shall provide a mechanism to uplift the standard of living and quality of
life of those in the road transportation sector. They must be empowered to meet
their minimum basic needs, through partnership with the government. It is likewise
vital that the State shall recognize and encourage the road transportation sector as
its partner to achieve the goals towards effective delivery and implementation of a
wide range of safe, efficient and affordable road transportation services to the
people.

To attain the foregoing policy:

(a) The State shall provide full access to government support and
services to the road transportation sector;

(b) The State shall prioritize investments in transportation-related
programs to enable the road transportation sector to participate in the
country’s development; and


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(© The State shall formulate national policies and guidelines for the
integrated and comprehensive road transportation programs in the national
and local levels.

Sec. 3. Definition of Terms. ~ As used in this Act, the following shall mean:

(a) Road Transportation Sector - shall refer to operators, owners
and their employees engaged in the movement of people and commodities for
a fee; passengers; and those in transportation-related businesses who provide
goods and services to the general public;

(b) Road Transportation - shall refer to the transportation of
passengers and goods on the road, which includes but is not limited to public
utility vehicles such as buses, jeepneys, taxis, TNVS providers, coaches, trucks,
motorcycles and tricycles;

© National Road Transportation Group — shall refer to the
representative association to be established and organized to cater to a
national constituency, and whose mandate includes the protection of the
interests and rights of road transportation operators, owners and workers;
passengers and those in transportation-related businesses to ensure economic
growth and prosperity through the sustainable mobility of people and goods;
and

(a) Road Transportation Education — shall refer to non-degree
programs aimed to provide education and training in the planning, design,
construction, and operation of vehicles for road transportation.

Sec. 4. Right to Organize and to Participate in Democratic Exercises. - Every
road transportation association shall have the right to organize and determine its
programs and projects on road transportation subject to their charter and bylaws:
Provided, That it does not infringe on the basic rights and freedom of those
belonging to the road transportation sector: Provided, further, That the road
transportation sector shall also have the right to participate in the deliberation of
issues and in the formulation of policies that affect them, including the guarantee of
representation in the governing boards or appointment in government
instrumentalities.


Sec. 5. Right Against Abusive Traffic Law Enforcers. — The State shall establish
a Road Incident Complaints and Investigation Office directly under the Department
of Justice to receive and act on complaints against traffic abuses.

Sec. 6. Right to Collective Bargaining. — All road transportation workers shall
have the right to engage in collective bargaining with road transportation operators
and owners to promote the interests of employees such as, just compensation,
health benefits and social security, among others.

Sec. 7. Right to Free Legal Assistance. An indigent member of the road
transportation sector who becomes a party to a transportation-related civil and/or
criminal case, may avail of free legal assistance, counseling and representation
before the courts from the Public Attorney's Office, subject to existing rules and
regulations.

Sec. 8. Social Protection. - The road transportation workers shall be enrolled in
the Social Security System (SSS), Philhealth and Pag-Ibig Fund. The employer or
operators shall deduct from the workers’ income or salary the monthly social security
contribution based on the respective schedule of contributions and remit their
corresponding share of contribution to the SSS, Philhealth and Pag-IBIG: Provided,
That, if the road transportation worker is paid on a commission basis, the monthly
premium payments to SSS, Philhealth and Pag-IBIG shall be shouldered by the
worker but, the operator may assist in facilitating the remittance to said institutions.

Sec. 9. Creation of a National Road Transportation Group. - There shall be
established a National Road Transportation Group to represent the road
transportation sector in policy-making and decision-making affairs in the national
and local level.

There shall be a national representative in the governing boards and
government instrumentalities, to include, but not limited to, the Land Transportation
Franchising and Regulatory Body (LTFRB), Toll Regulatory Board (TRB), Land
Transportation Office (LTO) and Department of Transportation (DOTr). It shall have
its set of officers elected in an annual election.

The National Road Transportation Group shall be involved in activities which
include, but are not limited to:


(a) Recommend policies that will empower the road transportation
sector;

(b) Monitor all activities, legislation, policies and events that will
impact on the road transportation sector;

© Dialogue with intergovernmental bodies and all other
stakeholders concerned on the role and importance of the road transportation
industry, of its position on various issues, and sharing of reliable data and
information;

(d) Cooperate with governing and legislative bodies in order to
contribute to informed and effective legislation, to maintain balance between
the needs and interests of all; and

(e) Provide services and information to road transportation
operators and workers, such as but not limited to reporting legislative
developments, legal assistance, professional training and road transportation
credit assistance.

Sec. 10. The Road Transportation Charter and Bylaws. — There shall be a Road
Transportation Group charter and by-laws crafted by the heads or representatives of
all accredited road transportation associations and ratified by a simple majority of all
its members.

Sec. 11. Qualifications of Road Transportation Representatives. - No person
shall be elected as a Road Transportation Group representative unless he is a citizen
of the Philippines, at least thirty (30) years of age, able to read and write, a bona
fide member of any legitimate road transportation association for at least one (1)
year prior to the election, and has never been convicted of any administrative, civil
or criminal offense involving moral turpitude.

If, at any time, an officer or representative ceases to be a bona fide member of
the represented transportation group, through expulsion, resignation, or any manner
of removal sanctioned by its association and by-laws, the position shall automatically
be declared vacant and shall be filled up accordingly as provided in the charter and
by-laws.

Sec. 12. Creation of a One-Stop Transportation Services Office. - A one-stop
processing and approval center shall be created at least in every province and city to

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facilitate and expedite the business application process, enrollment in social security,
Pag-IBIG and Philhealth benefits and to serve existing and potential investors in the
road transportation sector in order to enhance the investment climate. The DOTr,
LTO, LTFRB, SSS, Philhealth, Pag-IBIG and other government agencies concerned
shall collaborate, agree and commit to share resources and responsibilities in
facilitating the required documentation and registration procedures.

Sec. 13. Establishment of a Road Transportation Surety Fund Program. — The
Road Transportation Surety Fund Program shall be created under the Land Bank of
the Philippines (LBP) and the Development Bank of the Philippines (DBP) for the
purpose of funding special programs for the development of the road transportation
sector in accordance with the rules and regulations of the Banko Sentral ng Pilipinas.
The Program shall provide financing start-up and access to credit for road
transportation sector members and cooperatives.

Sec. 14. Road Transportation Education. - The Technical Education and Skills
Development Authority (TESDA) is mandated to design and conduct short-course
trainings on road transportation education. The courses shall focus on the following:

(a) Basic driving skills;

(b) Transportation laws, traffic signs, rules and regulations;

© Safe driving practices;

(d) Automotive troubleshooting to develop a competent and
responsible driver; and

e) Design, assembly, manufacture, and operation of various types
of road transportation.

The Department of Education (DepEd) is hereby required to incorporate in the
high schoo! curriculum a subject that aims to provide basic driving skills and
education on traffic laws, rules and regulations.

The LTO is hereby mandated to classify all drivers’ license, whether non-
professional, professional or commercial driver's license, according to the types of
vehicles to be driven and require all applicants for professional driver's license to
undergo a commercial driver’s license training from TESDA-accredited training
schools and pass the written and practical examinations before the issuance of a

license.


Sec. 15. Establishment of Free Common Transportation Terminal Facilities. —
Every Local Government Unit is mandated to establish free common transportation
terminal facilities in order to provide more convenient access to mass transportation
system to the commuting public.

Sec. 16. Allocation of Funds. - Ten percent (10%) of the funds generated from
the Motor Vehicle User’s Charge shall be allocated to implement this Act to be
provided in the annual General Appropriations Act.

Sec. 17. Implementing Rules and Regulations. — Within ninety (90) days from
the effectivity of this Act, the DOTr in coordination with the DOJ, DepEd, TESDA and
the National Economic and Development Authority, shall formulate rules and
regulations to effectively implement the provisions of this Act.

Sec. 18. Separability Clause. ~ If any portion or provision of this Act is declared
unconstitutional, the remainder of this Act or any provisions not affected thereby
shall remain in force and effect.

Sec. 19. Repealing Clause. - Any law, presidential decree or issuance,
executive order, letter of instruction, rule or regulation inconsistent with the
provisions of this Act is hereby repealed or modified accordingly.

Sec. 20. Effectivity. - This Act shall take effect fifteen (15) days following its
complete publication in the Official Gazette or in at least two (2) newspapers of
general circulation.

Approved,