SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
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Third Regular Session 
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A 9 '36
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S E N A T E
S. B. No. 
22 0 8
Introduced by Senator Aqiiilino tfcKoko” Pimentel III
AN ACT
ABOLISHING THE SPECIAL FUNDS CREATED PURSUANT 
TO REPUBLIC ACT NO. 8794 AND REQUIRING THE 
MONIES COLLECTED AS MOTOR VEHICLE USER’S 
CHARGE BE DEPOSITED INTO THE GENERAL FUND
EXPLANATORY NOTE
In the year 2000, Republic Act No. 8794 was enacted to put in 
place a Motor Vehicle User’s Charge (MVUC) that would replace the 
registration fee and the private motor vehicle tax. The monies collected 
as MVUC are special funds earmarked solely for (1) road maintenance 
and the improvement of road drainage, (2) installation of adequate and 
efficient traffic lights and road safety devices, and (3) air pollution 
control.
Over the years, the Commission on Audit has flagged the illegal 
utilization of these funds under the Road Board, the entity created under 
R. A. 8794 to implement the prudent and efficient management and 
utilization of these special funds. Thus, legislative measures have been 
filed to abolish the Road Board.


As a complementary bill to the abolition of the road board, this bill 
seeks to merge these special funds into the general fund to fund priority 
programs and projects of the government and the allocation will be 
decided by Congress through the annual general appropriations act.
With these proposed changes, we expect a more transparent and 
accountable use of public funds and we ensure a steady funding source 
for vital government programs and projects.
In view of the foregoing, passage of this bill is earnestly sought.
AQUILrNO uKOKO” PIMENTEL 111


' €i'.
SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
Third Regular Session 
)
S E N A T E  
S. B. No. 2208
*19 
^EB -6 A 9 36
RtC.
Introduced by Senator Aquilino “Koko” Pimentel HI
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AN ACT
ABOLISHING THE SPECIAL FUNDS CREATED PURSUANT 
TO REPUBLIC ACT NO. 8794 AND REQUIRING THE 
MONIES COLLECTED AS MOTOR VEHICLE USEICS 
CHARGE BE DEPOSITED INTO THE GENERAL FUND
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled:
SECTION 1. Amendment in the Disposition of Monies Collected. 
— Section 7 of R. A. 8794 is hereby amended to read as follows:
SEC. 7. Disposition of Monies Collected. - All monies 
collected under this Act shall [be eamiarked solely and 
used exclusively (1) for road maintenance and the 
improved of the road drainage, (2) for the installation of 
adequate and efficient traffic lights and road safety devices, 
and (3) for 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;
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(2) 
Five percent (5%) shall be allotted to and placed 
in the Special Local Road Fund; and
(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 used 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 Special Local Road Fund shall be apportioned to 
provincial and city governments in accordance with the 
vehicle population and size of the road network under their 
respective jurisdictions, and shall be used exclusively for 
maintenance of local roads, traffic management and road 
safety devices.
A Road Board to implement the prudent and efficient 
management and utilization of the special funds shall be 
organized by the President of the Philippines. The Road 
Board shall be composed of seven (7) members, with the 
Secretary of the DPWH as ex officio head, and the 
secretaries of the Department of Finance, Budget and 
Management, and Transportation and Communications, as 
ex officio members. The remaining three (3) members shall 
come from transport and motorist organizations which have 
been in existence and active for the last five (5) years prior
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to this Act. They shall be appointed for a term of two (2) 
years each by the President of the Philippines upon the 
recommendation of the secretaries of the DPWH and the 
DOTC] ACCRUE TO THE GENERAL FUND TO 
FINANCE PRIORITY PROGRAMS AND PROJECTS 
OF THE GOVERNMENT WHICH SHALL BE 
ALLOCATED 
IN 
THE 
ANNUAL 
GENERAL 
APPROPRIATIONS ACT.
SEC. 2. Repeal — Section 8 of R. A. 8794 is hereby repealed.
(SEC. 8. Status of the Special Funds. -  The four (4) 
special funds established under this Act shall be distinct 
and separate from and in addition to any appropriation 
authorized and granted yearly to the DPWH and the DOTC 
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 road maintenance of the DPWH.- Provided, however.
That any savings for each year out of such appropriation 
shall revert to the General Fund. Any savings from the 
special funds created herein shall accrue to these respective 
special funds.]
SEC. 3. Implementing Rules and Regulations. — Within thirty 
(30) days from the effectivity of this Act, the Department of Public 
Works and Highways, Department of Transportation, Department of 
Budget and Management, Department of Finance, and the Bureau of 
Treasury shall Jointly promulgate the rules and regulations necessary for 
its effective implementation.
SEC. 4. Repealing Clause. — All other laws, rules and 
regulations, or parts thereof that are inconsistent with this Act are hereby 
repealed, amended, or modified accordingly.
SEC. 5. Effectivity Clause. — This Act shall take effect fifteen 
(15) days after its complete publication in two (2) newspapers of general 
circulation.
Approved,
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