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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

THIRTEENTH CONGRESS
4* Regular Session

246
introduced by RODRIGUEZ D. DADIVAS

House Bill No

Explanatory Note

The need to conduct a compulsory registration of heavy equipment all over the
country is imperative in order to: 1) monitor the availability of construction equipment
vis-8-vis the infrastructure needs of the country 2) generate substantial income for
the govemment 3) prevent misrepresentation by unscrupulous contractors as to the
ownership of heavy equipment thereby helping the government's PBAC in the
determination and compliance of pre-qualification requirements, among others.

It Is surprising to note that while Republic Act No. 4136, as amended, requires the
compulsory registration of motor vehicles, there is no law that provides otherwise for
heavy equipment.

As a result, the govemment is at lost whether there is enough heavy equipment
available to sustain its infrastructure needs. This is so because the practice of
leasing the same heavy equipment to two or more different contractors working on
different projects on the same dates but at different sites is being done by
unscrupulous contractors, Naturally, undue delay in government infrastructure and
Public works projects is but a normal consequence

Itis for this reason that this bill is filed to provide the compulsory registration of heavy
equipment throughout the country. Aside from generating substantial income for the
govemment, it would also prevent misrepresentation by contractors as to the
ownership of heavy equipment thereby helping the government's PBAC in the
determination and compliance of pre-qualification requirements. With the compulsory
registration of heavy equipment, owners/lessors and lessees of heavy equipment will
be properly identified and these unscrupulous contractors will be blacklisted for
good.

This bill was-aleo_filed in the Senate during the last Congress but due to time
constraj/f, its approvaMyas not realized. In view of the foregoing, immediate
Al of this bill is earndstty sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

THIRTEENTH CONGRESS,
4 Regular Session

246

House Bill No.

Introduced ct by RODRIGUEZ D. DADIVAS

AN ACT
PROVIDING FOR THE COMPULSORY REGISTRATION OF HEAVY EQUIPMENT
AND FOR OTHER PURPOSES

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

SECTION 4. Short Title. - This Act shall be known as the “Heavy
Equipment Registration Act of 2004.”

SEC. 2. Declaration of Policy. — It ie hereby declared the policy of the State-
to ensure the proper registration of heavy equipment all over the country in order to
monitor the availability of construction equipment ta ensure the sustainability of the
infrastructure needs of the country.

SEC. 3. Compulsory Registration of Heavy Equipment — The provicion of
any existing law to the contrary notwithstanding, all heavy equipment with five (5)
tonnage ar mare ar with thirty (30) horsepower engine, such as but not limited to,
earthmoving equipment, compaction equipment, ‘equipment, excavating
equipment operated on or upon any part of the Philippines shall be registered with
the Construction Industry Autharity of the Philippines (CIAP).

SEC. 4. Application for Registration. — Any person, firm oF entity who owne
or has a right over an equipment shall apply for registration to the Construction
Industry Autharity of the Philippines, upon payment of the registration fee

Each registant-owner shalt be issued @ one-time certificate of equipment
registration on a particular equipment registered in his/her name, together with the
correspanding plate number.

SEC. 5. Validity of Registration. — The regictration shall remain. valid
throughout the lifetime of the equipment, subject to the annual updating, unless there
is a change of ownership or transfer of rights aver the equipment ta anather person,

iy n case, the new owner shall apply for registration within thirty
¢ the transaction, after which the new owner shall be issued @
certificate of equipment registration, together with the corresponding plate number.

SEC, §. Schoduling of Fees. — The Construction Industry Authority of tha
Philippines (CIAP) is hereby empowered to prepare and issue the corresponding
schedule of registration fees, registration requirements and plate numbers, subject to


the approval of the Secretary of the Department of Trade and Industry (DTI), in
consultation with the Secretaries of the Department of Finance (DOF), the
Department of Public Works and Highways (DPWH) and the Department of
Transportation and Communications (DOTC). The scheduling of said fees shall be
determined on the basis of model, body configuration, weight, cubic displacements
or number of cylinders of heavy equipment and other pertinent factors. Said
schedule shall not be changed more often than once every three (3) years and only
upon due notice given to the public at least ninety (90) calendar days before the
effectivity of such schedule.

SEC. 7. Disposition of Monies Collected. — All monies collected under this
Act shall be earmarked solely and used exclusively for road maintenance and the

improve of road drainage to form part of the special fund created under Republic Act
No. 8794.

SEC. 8. Prohibition Against the Imposition of Similar Charges on Heavy
Equipment Registration. — No other tax, fee or any other charges of similar nature,
as the Heavy Equipment Registration Charge, shall be imposed by any political
subdivision or unit in the country

SEC. 9. implementing Rules and Regulations (IRR). - The Construction
Industry Authority of the Philippines (CIAP), in consuttation with the DPWH, DOTC,
DBM and DOF, and subject to the approval of the DTI Secretary, shall, within ninety
(90) days after the approval of this Act, promulgate the necessary rules and
regulations to implement and cary out the intent, objectives, purposes and
provisions of this measure.

SEC. 10. Applicability. - The provisions of Republic Act No. 4136, as
amended, pertaining to the compulsory registration of motor vehicles shall apply to
the compulsory registration of heavy equipment when not in confiict with this Act

SEC. 11. Separability Clause. — if, for any reason, any section or provision of
this Act shall be held unconstitutional or invatid, the other sections or provisions not
otherwise affected shall remain valid

SEC. 12. Repealing Ciause. - All laws, presidential decrees, executive
orders, proctamations, rules and regulations, which are inconsistent with the
provisions of this Act, are hereby repealed or modified accordingly.

SEC. 13. Effectivity Clause. - This Act shall take effect fifteen (15) days from

its publication in the Official Gazette or in at least two (2) newspapers of generat
circulation.

Approved,