Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon Ci

SEVENTEENTH CONGRE!
First Regular Session

HOUSE BILL NO. 3680
Introduced by HON. DANILO E. SUAREZ & HON. RONALD M, COSALAN

EXPLANATORY NOTE

This house bill was filed in the 15 Congress by the Hon. Danilo E. Suarez,
and was approved on third reading, It, however, was not passed into law. Two
terms after, controversies still surround the purpose, use and distribution of the
Motor Vehicle User’s Charge (MVUC) or more popularly known as the Road User's
Tax making it imperative to revisit Republic Act No. 879:
transparent disbursement of the monies collected from vehic!

and ensure a more

> owners.

The MVUC provides a readily available funding mechanism for the
emergency repairs and maintenance of the country’s major highways. ‘The National
Road Board plays a very crucial role as the accountable agency in the collection and
disposition of the MVUC. It is presently divided among four (4) trust funds in the
National Treasury, namely the Special Road Support Fund, Special Local Road
Fund, Special Road Safety Fund and the Special Vehicle Pollution Control Fund.
The money pertaining to the Special Road Support Fund is the biggest at eighty
percent (80%), thus it is important to be more specific in its use and a scheme of
division for its allocation be devised. Each congressional district must be allocated
amounts in accordance with its road coverage and conditions, whether it is concrete,
asphalt or all-weather. The role of the National Road Board must likewise be
expanded to include oversight functions on conversions of municipal or provincial
roads to national roads given the supposed expertise it has and that it is the entity
responsible for maintenance and proper upkeep of roads.

Through this proposed legislative measure, it is expected that the MVUC will
be used to improve motoring, in the country and the National Road Board be more
responsible in the disbursement of the fund.

The approval of this bill is thus earnestly requested

Chey

DANILO E. SUAREZ R prac d, COSALAN |
Representative Representative
3" District, Quezon Province Lone District, Benguet Provi

a



Republic of the
HOUSE OF REPI
Quezon C

Philippines
ITATIVES

SEVENTEENTH CONGRESS
First Regular Session

3680

HOUSE BILL NO,

Introduced by HON. DANILO E,

SUAREZ & HON. RONALD M, COSALAN

AN ACT
RECONFIGURING THE DISPOSITION OF THE MONIES COLLECTED AND
DELINEATING THE STATUS OF THE SPECIAL FUNDS, AMENDING FOR
‘THE PURPOSE SECTIONS 7 AND 8 OF REPUBLIC ACT NO. 8794,
OTHERWISE KNOWN AS THE MOTOR VEHICLE USER’S
CHARGE LAW, AND FOR OTHER PURPOSES.

Be it enacted by the Senate and 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 earmarked solely and used exclusively (1) for road maintenance,
repair, and the improvement and conereting of all roads and/or drainage
projects, (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 Eund; (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 Five percent (85%) 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) Five Percent (5%) shall be allotted to and placed in the Special Road
Salety Fund; and



(4) Five Percent (5%) shall be allotted to and place in the Special Vehicle
Pollution Control Fund

“The Special Road Support Fund, the Special Local Road Fund and the
Special Road Safety 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
exclusively 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 talfie 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.

“& 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 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.

“The Special Road Support Fund shall be allocated to each congressional
district including constituencies of party-list representatives in equal amounts
of twenty million pesos (P20,000,000.00) for the national constituencies per
senator. It shall be intended for the maintenance, repair, improvement and
concreting of all roads and drainage whether national primary and national
secondary road, provincial, city, nwunicipal or barangay roads. The remaining
undistributed amount of the Special Road Support Fund shall be distributed
to congressional districts based on road coverage and condition: Provided,
That urban districts shall be allocated an account of thirty million pesos
(P30,000,000.00). Fifteen percent (15%) of the Special Road Support Fund
shall be allocated as contingency fund that the Road Board shall manage.”



Section 2. Section 8 of Republic Act No, 8794 is hereby amended to read as

follows

other executive issuance

“Section 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, the DOTC
and the constituencies of members of Congress 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 such appropriation shall revert to the General Fund. Any savings from
the special funds created herein shall accrue to these respective special
funds,”

Section 3. Repealing Clause - All laws, presidential decrees, executive order
s, or parts thereof, which are inconsistent with this Act are

hereby repealed, amended or modified accordingly.

Section 4. Effectivity. - This Act shall take effect fifteen (15) days after

publication in at least two (2) newspapers of general circulation

Approved.