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Republic of the Philippines 3
HOUSE OF REPRESENTATIVES IS pane, MAY 08 2017
Quezon City : ee
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SEVENTEENTH CONGRESS & :
First Regular Session * unev oY

House Bill No. 5570

Introduced by Rep. MARIO VITTORIO “MARVEY” A. MARINO
5th District, Batangas

EXPLANATORY NOTE

‘The Land Transportation Office (LTO), a national government agency, is
mandated to impose a Road User's Tax or Motor Vehicle User's Charge (MVUC) on
all motor vehicles, including those owned by the government pursuant to Republic
Act No. 8794. The said tax or MVUC is the third biggest source of revenues next to
tax collections of the Bureau of Internal Revenue and the Bureau of Customs.' As it
stands today, the collection from these charges are allocated for the road maintenance
and improvement of national and secondary roads including drainage of national
primary roads, maintenance of local roads, traffic management and road safety
devices, and prevention control and management of air pollution from mobile sources.
Nevertheless, energy costs for the use of these street lights, traffic lights and other
road safety devices, particularly in national roads, are shouldered by the local
government units (LGUs), specifically the municipalities, considering that these
national roads are within their respective jurisdictions, Herein lies the
anomaly—municipalities, especially the poor municipalities, are given the
responsibility to answer for energy costs of facilities provided by and are within the
supervision of the national government.

Indeed, LGUs are mandated by law to provide basic services and facilities which
includes public infrastructures in their respective jurisdictions. Under the Local
Government Code, LGUs shall endeavor to be self-reliant and shall continue
exercising the powers and discharging the duties and functions and responsibilities of
national agencies and offices devolved to them pursuant to this Code. LGUs shall
likewise exercise such other powers and discharge such other functions and
responsibilities as are necessary, appropriate, or incidental to efficient and effective
provision of the basic services and facilities.? However, public works and
infrastructure projects funded by the national government under the General
Appropriations Act, other special laws, pertinent executive orders, and those wholly
or partially funded from foreign sources are not covered, except in those cases where

* Facts in Figures, December 2016. Congressional Policy and Budget Research Department, House of
Representatives.
* Section 17 (a), Local Government Code of 1991


the local government unit concerned is duly designated as the implementing agency
for such projects, facilities, programs, and services.

In the case of MVUC, the mandate to impose said taxes and/or charges is given
to the LTO, a national government agency, and was never designated to the LGUs
Also, the supervision, maintenance, improvement, and repair of the national roads and
its facilities remain with the national government, Therefore, it is only just that the
national government allocate funds for and shoulder the energy costs of the street
lights, traffic lights and other safety devices installed in national roads.

In view of the foregoing, the carly xe of this bill is eamestly requested.

MARIO VITTORIO “MARVEY” A. MARINO

* Section 17 (c), Local Government Code of 1991


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

5570

House Bill No.

Introduced by Rep. MARIO VITTORIO “MARVEY” A. MARINO
5th District, Batangas

AN ACT PROVIDING FUNDS FOR THE PAYMENT OF ENERGY
COSTS OF STREET LIGHTS, TRAFFIC LIGHTS, AND OTHER ROAD AND.
SAFETY DEVICES INSTALLED IN NATIONAL ROADS, AMENDING FOR
THE PURPOSE SECTION 7 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 PURPOSES

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

SECTION 1. Section 1 of Republic Act No. 8794, is hereby amended to read as
follows:

SECTION 1. Declaration of Policy. — It is hereby declared the policy
of the State to provide for and ensure the adequate maintenance of
national and provincial roads through sufficient funding for the
purpose.

IT IS, ALSO, HEREBY DECLARED THE POLICY OF THE
STATE TO PROVIDE THE NECESSARY FUNDS TO PAY FOR
THE ENERGY COSTS OF ROAD SAFETY AND TRAFFIC
DEVICES IN NATIONAL ROADS, THEREBY AFFORDING
ADEQUATE FINANCIAL ASSISTANCE ESPECIALLY FOR
POOR MUNICIPALITIES.

SECTION 2. Section 7 is amended to read as follows:

SECTION 7. Disposition of Monies Collected. ~ All monies collected
under this Act shall be earmarked solely and used exclusively (1) for
road maintenance and the improvement of the road drainage, (2) for
the installation of adequate and efficient traffic lights and road safety
devices, (3) FOR PAYMENT OF ENERGY COSTS OF STREET
LIGHTS, TRAFFIC LIGHTS AND OTHER ROAD SAFETY



DEVICES INSTALLED IN NATIONAL ROADS, and (3) for the air
pollution control.

All such monies collected shall be deposited in four (4) special trust
accounts in the National Treasury, namely: (1) Special Road Support
Fund; (2) Special Local Road Fund; (3) Special Road Safety Fund;
and (4) Special Vehicle Pollution Control Fund. The distribution of
collections under this Act shall be as follows:

1. Eighty percent (80%) shall be allotted to and placed in the Special
Road Support Fund;

2. Five percent (5%) shall be allotted to and placed in the Special
Local Road Fund;

3. Seven and one half percent (7.5%) shall be allotted to and placed in
the Special Vehicle Pollution Control Fund.

‘The Special Road Support Fund, the Special Local Road Fund shall be
under the DPWH, whereas the Special Vehicle Pollution Control Fund
shall be under the DOTC.

Seventy percent (70%) of the Special Road Support Fund shall be
used for the maintenance of, and the improvement of drainage of
national primary roads. The remaining thirty percent (30%) thereof
shall be allocated and use for the maintenance, and improvement of
drainage of national secondary roads throughout the country.

The cost of installation of adequate and efficient traffic lights and road
safety devices throughout the country, where such traffic lights and
safety devices are needed, shall be taken from the Special Road Safety
Fund. THE ENERGY COST OF STREET LIGHTS, TRAFFIC
LIGHTS AND ROAD SAFETY DEVICES IN NATIONAL ROADS
SHALL, LIKEWISE, BE TAKEN FROM THE SPECIAL ROAD
SAFETY FUND.

XXX

SECTION 3. Effectivity Clause. ~ This Act shall take effect fifteen (15) days
after its publication in at least two (2) newspapers of general circulation.

Approved.