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

HOUSE OF REPRESENTATIVES,

House Bill No, 3185

Introduced by Representative Ralph G. Recto

AN ACT
CREATING THE SPECIAL MASS TRANSIT SYSTEM SUPPORT FUND
AMENDING FOR THE PURPOSE SECTION 7 OF REPUBLIC ACT NO. 8794, AS
AMENDED

EXPLANATORY NOTE

There are approximately 98.46 million (90%) out of our 109.04 million!
population who constitute the riding public. On the other hand, the total number of
motor vehicles registered with the Land Transportation Office (LTO) in 2021 reached
13.02 million, of which 2.366 million (18%)? are public utility vehicles.

A national Social Weather Station Survey showed that a big majority or
seventy-two percent (72%) of the non-home-based working Filipinos expressed
difficulty in traveling to their place of work compared to pre-pandemic times because
of limited public transportation.>

Our nation’s transport system relies heavily on the road network which
handles roughly 90 percent of passenger movement and 50 percent of freight

movement," serving priority production areas and population centers.

Since the passage of Republic Act No. 8794, entitled “An Act Imposing a Motor
Vehicle User's Charge on Owners of All Types of Motor Vehicles and for Other

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Purposes, as Amended”, the road user's tax has been imposed on owners of all types
of vehicles, whether for hire, for private or government use. Based on the 2022
Budget of Expenditures and Sources of Financing, the balance of the collections from
Motor Vehicle User's Charge (MVUC) as of December 31, 2020 amounts to P80.4
billion while the estimated revenues for 2022 amounts to P18.05 billion.>

The increase in number of motor vehicles has corollary increases in the MVUC
collections. However, it has also made the traffic situation in our country worse.
Metro Manila may soon become “uninhabitable” if roads and other infrastructure are
not upgraded immediately as the volume of vehicles sold continuously increase

despite the pandemic.®

In a study conducted among 418 cities in the world, Metro Manila ranked fifth
in terms of time spent in traffic yearly or 188 hours time wasted for the average
motorist,’ which is equivalent to a monetary loss of roughly P75,604.8 The cost of
traffic quantified by wasted time, fuel and lost human productivity, was projected to
rise to as much as P5.4 billion daily by 2035.9

This measure seeks to amend the MVUC Act by realigning funds from the
MVUC for the construction, improvement and rehabilitation of our mass transit
system. While total elimination of traffic congestion would be challenging, persistent
efforts to improve the country’s mass transport systems would certainly be a factor
in easing traffic and translate into benefits such as increase in productivity, cleaner

environment and a healthier population.

The approval of this bill will address the need to provide efficient and effective
mass transit system in our country. Expansion and improvement of mass transit has
been proven to be cost-effective in developed countries since it addresses concerns

on traffic and parking congestion, travel time, costs of constructing and maintaining

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road network, road safety, health and environment, excessive energy consumption
and limited mobility for the riding public.

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

Jmjma



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

HOUSE OF REPRESENTATIVES

3 5
House Bill No. 185

Introduced by Representative Ralph G. Recto

AN ACT
CREATING THE SPECIAL MASS TRANSIT SYSTEM SUPPORT FUND AMENDING
FOR THE PURPOSE SECTION 7 OF REPUBLIC ACT NO. 8794, AS AMENDED

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 “Special Mass
Transit System Support Fund Act”.

Sec. 2. Disposition of Monies Collected. — Section 7 of R.A. No. 8794, as
amended, is hereby further amended to read as follows:

“Sec. 7. Disposition of Monies Collected. — All monies collected under this
Act shall be [remitted-to-the-Nationat yun pecial-account-in-the
Generat-Fund—to—be] earmarked solely AND USED EXCLUSIVELY for the
construction, [upgrading;—repair,] IMPROVEMENT, and rehabilitation of
[reads,—bridges,—and—read—drainage] OUR MASS TRANSIT SYSTEM,
INCLUDING THE ACQUISITION OF ROAD RIGHT-OF-WAY FOR SUCH
PROJECTS to be included in the annual General Appropriations Act.

ALL SUCH MONIES COLLECTED SHALL BE REMITTED TO THE
NATIONAL TREASURY UNDER A SPECIAL ACCOUNT IN THE GENERAL
FUND TO BE KNOWN AS THE SPECIAL MASS TRANSIT SYSTEM
SUPPORT FUND. THE SAID FUND SHALL BE UNDER THE DEPARTMENT
OF TRANSPORTATION (DOTR).

Sec. 3. A new Section 8 is hereby inserted after Section 7 of the same Act to

read as follows:
“SEC. 8. THE SPECIAL FUND ESTABLISHED UNDER THIS ACT
SHALL BE DISTINCT AND SEPARATE FROM AND IN ADDITION TO ANY
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APPROPRIATION AUTHORIZED AND GRANTED YEARLY TO THE DOTR

TO COVER EXPENDITURES FOR THE IDENTIFIED OBJECTS OF

EXPENDITURES UNDER THIS ACT. CONGRESS SHALL CONTINUE TO

APPROPRIATE AN AMOUNT IN THE GENERAL APPROPRIATIONS ACT

FOR THE CONSTRUCTION, IMPROVEMENT AND REHABILITATION OF

THE MASS TRANSIT SYSTEM UNDER THE DOTR: PROVIDED,

HOWEVER, THAT ANY SAVINGS FOR EACH YEAR OUT OF SUCH

APPROPRIATION SHALL REVERT TO THE GENERAL FUND WHILE ANY

SAVINGS FROM THE SPECIAL FUND CREATED HEREIN SHALL ACCRUE

TO THIS SPECIAL FUND.”

Sec. 4, The succeeding sections of the same Act are hereby renumbered
accordingly.

Sec. 5. Implementing Rules and Regulations. — The Department of Budget and
Management, in coordination with the Bureau of the Treasury and the DOTr, shall
within sixty (60) days from the effectivity of this Act, promulgate the rules and
regulations to effectively implement the provisions of this Act.

Sec. 6. 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. 7. 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, amended or modified accordingly.

Sec. 8. Effectivity Clause. — This Act shall take effect after fifteen (15) days
following its complete publication in the Official Gazette or in at least two (2)
newspapers of general circulation.

Approved,