Republic of the Philippines
House of Representatives {
Quezon Gity, Meteo Manila

EIGHTEENTH CONGRESS
Second Regular Session

7602

House Bill No.

INTRODUCED BY
REP. ALFRED VARGAS

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

The traffic congestion in the country particularly in Metro Manila has
long been a problem for the government and the commuting public. In 2017,
a research study reported that Metro Manila ranked third in having the
worst traffic in Southeast Asia, where commuters and motorists alike spend
more than an hour on average in traffic every day.!

The opportunity cost of the traffic problem in Metro Manila, measured
by wasted time, fuel, and lost productivity, was estimated at P3.5 billion a
day in 2017 and projected to increase to as much as P5.4 billion daily by
2035.2

Transport advocates and urban planners have long-suggested that a
probable solution to this daunting concern of traffic congestion is the
development of an effective mass transit system. An effective public
transport system can aid the commuting public for faster mobility, while
promoting the environment and decongesting traffic caused by an
insurmountable trail of private vehicles.

Especially in challenging times like the COVID-19 pandemic, the
government must take necessary steps and opportunities to promote

! Boston Consulting Group. 2017 “Unlocking Cities”
? Japan International Cooperation Agency (JICA) Philippines. 2018. “Partners in Nation Building: Annual
Report 2018.”


mobility and introduce new developments for a safer and more effective
mass transit system.

This bill seeks to amend the Motor Vehicle User’s Charge (MVUC) Act
by realigning funds from the MVUC for the construction, improvement, and
rehabilitation of our mass transit system. The development and expansion of
our mass transport systems would not only ease the traffic problem, but
would benefit the lives and productivity of the commuting public and result
to a cleaner environment.

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

‘D VARGAS


Republic of the Philippines
House of Representatives
Quezon City, Meteo Manila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 7602

INTRODUCED BY
REP. ALFRED VARGAS.

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".

SECTION 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 ee - All monies collected under
this Act shall be [remitted tothe s
inthe General Fund tobe] Geateae Sait AND USED EXCLUSIVELY for
the construction, }upgrading,repair} IMPROVEMENT, and rehabilitation of
[roads,—bridges,—and—road—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).

SECTION 3. A new Scction 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
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. ANY
SAVINGS FROM THE SPECIAL FUND CREATED HEREIN SHALL ACCRUE
TO THIS SPECIAL FUND."

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

SECTION 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.

SECTION 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.

SECTION 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 or modified accordingly.

SECTION 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,