Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 6236

Introduced by:
Representatives Rodolfo C. Farifias and Pantaleon D. Alvarez

AN ACT
ABOLISHING THE ROAD BOARD CREATED BY REPUBLIC ACT
NO. 8794 AND TRANSFERRING ITS POWERS AND FUNCTIONS
TO THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS
AND TO THE DEPARTMENT OF TRANSPORTATION,
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 8794

EXPLANATORY NOTE

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",
created the Road Board to implement the prudent and efficient
management and utilization of the special funds collected via Road
User's Tax ("Road Fund"), which are earmarked solely and used
exclusively 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.

The Road Fund was estimated at P90.72 Billion from 2001 to
December 2012. Past Commission on Audit (COA) reports showed
vestiges of illegal utilization of Road User's Tax over the years, such as:

(1) In 2004 to 2008, P5I5.50 Million of the Road Fund was used for
payment of salaries, allowances, maintenance, and other operating


expenses of the Road Board, which were properly chargeable to the
regular budget;

(2) In 2011, P62.52 Million of the Road Fund, which was
earmarked for road maintenance and repair, was used for the Road
Board's engineering and administrative overhead expenses; and

(3) In 2013, findings of irregularities in the expenditure of more
than P1.66 Billion in funds were uncovered.

Moreover, COA pointed out that from 2001 to 2010, there were
discrepancies amounting to P1.495 Billion in the total collection of Road
User's Tax upon reviewing the collections declared by the Land
Transportation Office in the amount of P71,887,585,394 as compared to
the certification of the Bureau of Treasury that the amount deposited
was only P70,392,954,323.

Obviously, the Road Board is just another layer of bureaucracy,
which became an avenue for graft and corruption. By abolishing this
regulatory agency, the public funds will be re-channeled to the National
Treasury and shall be appropriated to the proper government
departments such as the Department of Public Works and Highways
and the Department of Transportation, which will implement the road
safety measures and projects, as well as the Department of Environment
and Natural Resources which shall utilize the funds dedicated to air
pollution control for the development of solid waste management
systems in areas dedicated to tourism.

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

<n eh

RODOLFO C. FARINAS PANTALEON I} VAREZ


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

6236

HOUSE BILL NO.

Introduced by
Representatives Rodolfo C. Farifias and Pantaleon D. Alvarez

AN ACT
ABOLISHING THE ROAD BOARD CREATED BY REPUBLIC ACT
NO. 8794 AND TRANSFERRING ITS POWERS AND FUNCTIONS
TO THE DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS
AND TO THE DEPARTMENT OF TRANSPORTATION, AMENDING
FOR THE PURPOSE REPUBLIC ACT NO. 8794

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

SECTION 1. Section 7 of Republic Act No. 8794 is hereby amended
to read as follows:

"SECTION 7. Disposition of Monies Collected. All monies
collected under this Act shall be REMITTED TO THE
NATIONAL TREASURY AND SHALL BE
APPROPRIATED TO THE PROPER GOVERNMENT
DEPARTMENTS, SUCH AS THE DEPARTMENT OF
PUBLIC WORKS AND HIGHWAYS AND THE
DEPARTMENT OF TRANSPORTATION, WHICH WILL
IMPLEMENT THE ROAD SAFETY MEASURES AND
PROJECTS.

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SECTION 2. Rules and Regulations.—The secretaries of the
Department of Public Works and Highways (DPWH) and the Department
of Transportation (DOTr) shall jointly promulgate within thirty (30) days
from the effectivity of this Act, the rules and regulation to implement and
carry out the intent, objectives, purposes, and provisions of this Act,
including such structural and procedural improvement in the systems
and agencies concerned as may be necessary to ensure the prudent, wise,
effective, and efficient utilization of the special funds established under
Republic Act No. 8794: Provided, that the Secretary of the DPWH shall
prepare the portion of their implementing rules and regulations
pertaining to the Special Road Support Fund, the Special Local Road
Fund, and the Special Road Safety Fund, and the Secretary of the DOTC
shall prepare the portion of the implementing rules and regulations
pertaining to the collection of the motor vehicle's user's charge and on the
disposition of the monies accruing to the Special Pollution Control Fund.
Provided further, that the secretaries of the DPWH and the DOTC are
proscribed from creating a secretariat and may only be assisted by a
minimal number of staff in the administration and implementation of the
special funds established under Republic Act No. 8794.

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SECTION 3. Transitory Provisions. - The funds collected under R.A.
No. 8794 pertaining to the Trust Fund for Pollution Control, as of the date
of effectivity of this Act, shall be appropriated to the Department of
Environment and Natural Resources (“DENR”) which shall utilize the
same for the development of solid waste management systems and
processes in areas dedicated to tourism.

SECTION 4. Separability Clause. — Should any provision of this Act
or part hereof be declared invalid or unconstitutional, the other
provisions or parts not affected thereby shall remain valid and effective.

SECTION 5. Repealing Clause. —All laws, decrees, orders, and
issuances, or portions thereof, which are inconsistent with the provisions
of this Act are hereby repealed, amended, or modified accordingly.

SECTION 6. Effectivity. —This Act shall take effect fifteen (15) days
from its publication in two (2) newspapers of general circulation.

Approved,
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