REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
QUEZON CITY

EIGHTEENTH CONGRESS
First Regular Session

6495

HOUSE BILL NO.

Introduced by REPRESENTATIVES ENRICO A. PINEDA,
MICHAEL ODYLON L. ROMERO, PhD., ROWENA NINA O. TADURAN and
JOCELYN P. TULFO

EXPLANATORY NOTE

In September 2009, the Supreme Court of the Philippines promulgated a Decision
relative to the collection of parking fees of commercial establishments. ‘The Supreme
Court ruling states that “the State would be acting beyond the bounds of police power if
allowed to stop mall owners from collecting parking fees; and that the State also cannot
impose the same prohibition by generally invoking police power, since said prohibition
amounts to a taking of respondents’ property without payment of just compensation.”

Section 6, Article XII of the Constitution, on the other hand, provides that “The use
of property bears a social function, and all economic agents shall contribute to the
common good. Individuals and private groups, including corporations, cooperatives,
and similar collective organizations, shall have the right to own establish, and operate
economic enterprises, subject to the duty of the State to promote distributive justice and

to intervene when the common good so demands.”

This bill aims to address the concerns of business establishments and
administrators of paid parking facilities, the general public and the government by
establishing a specific standard that is beneficial for all the stakeholders. With the
continuing rise of sales of private vehicles resulting to bigger demands for parking
spaces, and the growth of business enterprises in the country, especially in Metro Manila,
other highly urbanized cities, and provinces; it is imperative to enact a law to regulate

the parking fees being collected and to make owners or administrators of paid parking


facilities accountable, in view of improving the safety and security of these

establishments for the benefit of the people.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

ol, A.PINEDA MI

1PACMAN

/DYLON L. ROMERO, PhD
1PACMAN

ROWENA . TADURAN



REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
QUEZON CITY

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 8495

Introduced by REPRESENTATIVES ENRICO A. PINEDA,
MICHAEL ODYLON L. ROMERO, PhD., ROWENA NINA O. TADURAN and
JOCELYN P. TULFO

AN ACT REGULATING THE IMPOSITION OF PARKING FEES SHOPPING
MALLS, HOTELS, HOSPITALS AND SIMILAR ESTABLISHMENTS AND
PRESCRIBING PENALTIES THEREFOR

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

Section 1. This Act shall be known as “Paid Parking Regulation Act”.

Section 2. Declaration of Policy. It is the policy of the State to protect the interests and
general welfare of consumers. Toward this end, the State shall promulgate measures that
will protect consumers who avail of parking facilities offered by business operators from
unreasonable parking rates and fees. The State shall likewise establish standards in the
operation of parking spaces and facilities.

Section 3. Coverage of this Act. This Act shall cover all parking facilities that charges
parking fees to all kinds of motor vehicles, including but not limited to, parking spaces
in shopping malls, restaurants, supermarket, schools, hospitals, hotels, vacant lots and
buildings or structures that are solely devoted for use as parking, and other similar
commercial establishments.

Section 4. Regulation of Parking Fees. The Department of Trade and Industry (DT!)
shall establish a standard parking rate in consultation with all the stakeholders and
consumer groups or organizations, with consideration to the number of parking slots
being offered to the public; the reasonable return of investment; inflation rate; consumer
price index; and the maintenance and security of parking facilities. The DTI shall review
the standard parking rates every three (3) years.

Section 5. Security and Safety of Parking Facilities. The Department of Interior and
Local Government (DILG) shall establish a safety and security standard that shall
uniformly followed by parking facilities covered under this Act. Parking facilities
covered by this Act are required, at the minimum, to install Closed-Circuit Television
(CCTV) cameras and hire security personnel commensurate to the number of parking
slots offered to the public, The DILG and the Local Government Units are required to
inspect parking facilities and their operations on a yearly basis.

Section 6. Prohibition on Invoking of Waiver of Liability. Business establishment and
parking facilities imposing parking fees are prohibited from invoking the waiver of


liability in case of loss or damage to vehicles parked in their parking spaces, Provided, that
the said damage or loss was not caused by another client using the parking facility.

Section 7. Penalties. The following are the penalties that may be imposed upon any
owner or person responsible over the administration of shopping malls, hotels,
restaurants, supermarket, schools, hospitals, hotels, vacant lots and buildings or
structures that are solely devoted for use as parking, and other similar commercial
establishments imposing parking fees:

a) Non-Compliance to the security and safety standards as provided by Section 5
of this Act:

a.1) 1* Offense - Suspension of business permit and parking facility
operations.

a.2) 24 Offense - Suspension of business permit and parking facility
operation and a fine of Fifty Thousand Pesos
(Php 50,000.00).

a.3) 3"! Offense - Revocation of business permit and closure of the parking
facility, and a fine of One Hundred Thousand Pesos (Php
100,000.00).

b) Overpriced parking fees/rates. Any owner or person responsible over the
administration of shopping malls, hotels, restaurants, supermarket, schools,
hospitals, hotels, vacant lots and buildings or structures that are solely devoted
for use as parking, and other similar commercial establishments shall pay the
fine of One Hundred Thousand Pesos (Php 100,000.00) per customer charged
with an overpriced parking fees/rates.

Section 8. Implementing Rules and Regulations. The DTI, in consultation with the
DILG shall promulgate the implementing rules and regulations for the effective
implementation of this Act within two (2) months from its effectivity.

Section 9. Separability Clause. If 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 10. Repealing Clause. All laws, executive orders, decrees, instructions, rules
and regulations contrary to or inconsistent with any provision of this Act are hereby
amended, repealed or modified accordingly.

Section 11. Effectivity Clause. This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in any newspaper of general circulation.

Approved,