Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

‘TEENTH CONGRESS
First Regular Session

House BiLL No. 6961

Introduced by Representative Ivan Howard A. Guintu

EXPLANATORY NOTE

Popularly known as the “King of the Road,” jeepneys emerged on the streets of
Manila around the 1950s. These were surplus vehicles left by American soldiers after World
War II, and were then taken by Filipinos to modify them, which in turn became a new form
of mass transit. As time passed, the creativity of Filipinos became evident on jeepneys, which
they designed with paintings of religious icons, TV and movie characters, NBA teams and
players, beautiful scenery, word art, or family members, using vibrant and loud colors. !

Owing to its spacious design, jeepneys can carry about 12-18 people, depending on its
size. And because of this design, jeepneys are also more convenient for commuters due to the
ease of hopping on and off on any part of the route a jeepney plies. Aside from this, fares for
jeepneys are also more economical for commuters as they are are much cheaper than fares for
taxis, trains, tricycles, buses, and most definitely the fares for transportation network vehicle
services including Grab.

Jeepneys ubiquitous presence in the streets is largely due to the convenience of
transportation it offered. As of October 2021, about 42.6 thousand public utility jeepneys
(PUJs) were operating in the country.? Indeed, the Philippines will always been known for
jeepneys, similar to how London is known for the red double-decker bus, and New York for
its yellow taxis,

However, this large number of PUJs also means there is also a significant number of
jeepney drivers whose livelihood is at risk given the costly demands of the public utility
vehicle (PUV) modernization program.

+ httpsi//medium.com/the-hyphenated-filipino/king-of-the-road-taking-a-look-at-the-history-of-jeepneys-in-
the-philippines-e49fe820d91¢
2 https://www.statista.com/statistics/1268623/philippines-number-of-puvs-operating-by-vehicle-type/


‘A modernized jeepney costs around P2.4 million, of which the government subsidizes
only P160,000,° with the balance to be paid by the jeepney driver with the assistance of a
Joan program from the Landbank of the Philippines.

There is no denying the fact that the cost of modernized jeepneys is burdensome for
our jeepney drivers, and thus places their livelihood at risk Compared to the high cost of a
modernized jeepney, the take home pay of jeepney drivers per day hovers at around PS00-
P1000, depending on the number of passengers they take and the trips they make per day
However, given the increasing prices of petroleum products including diesel, jeepney drivers
possibly earn way less.*

This measure aims to ease the burden on jeepney drivers by proposing a middle
ground. The government shall provide a financial assistance of not lower than 20% of the
price per unit to drivers or operators who opt to modernize their jeepneys; the interest rate on
loan amortization shall not exceed 4% diminishing annual interest considering the
mass/public nature of PUV services; and the loan amortization period shall be at least 15
years.

In view of the foregoing, immediate approval of this measure is earnestly sought.

# https://www.philstar.com/headlines/2022/10/20/2218080/dotr-public-transport-modernization-jeepney-
phaseout-continue
* httpsi//businessmirror.com.ph/2022/08/30/jeepney-modernization-pros-and-cons/


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILLNO. 6961

Introduced by Representative Ivan Howard A. Guintu

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.

See. 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 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

¢) 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 (DOT), in
consultation with other concemed 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

See. 5. Engine and Replacement Specification. -

4) 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 DT!'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;

©) 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

4) DOTr shall plan for a phased implementation of the program following a five (5) year
transition period

See. 6. Financial Assistance. -

a) Government Subsidy - Government financial assistance provided to drivers/operators who
elect to modernize shall not be lower than twenty percent (20%) of the price per unit to
lighten the capital burden of modernization; and

b) Loan Interest/Payment Options:

1. 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.

2. The interest rate on loan amortization shall not exceed four per cent (4%)
diminishing annual interest considering the mass/public nature of PUV services.

3. 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. 7. 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.


See. 8. Non-compliance with Consolidation, - Existing operators who are not able to comply
with any consolidation requirement under the modernization programs of the Department of
‘Transportation may still be allowed to operate by virtue of a one (1) year Provisional Authority,
without losing the right to service its current route,

See. 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 per cent (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).

See. 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,