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Republic of the Philippines
HOUSE OF REPRESENTATI
Quezon City

SEVENTEENTH CONGRES!
First Regular Session
HOUSE BILL NO. ebih

INTRODUCED BY HONORABLE GAVINI “Al

EXPLANATORY NOTE

This Bill seeks to provide consumers free parking in shopping malls as a matter
of public service and value added to their patrons.

RA 7394 or the Consumer Act of the Philippines declares it as the policy of the
State to protect the interest of the consumer, promote his general welfare and to
establish standards of conduct for business and industry. In the same manner the
National Building Code and its implementing rules and regulations require that business
establishments make provisions for parking, although it does not require mall owners to
provide free parking spaces for shoppers. For this reason the Supreme Court has ruled
that mall owners can collect parking fees from motorists using their premises without
violating the law. However parking fees exacted by these establishments have now
been observed as becoming irresponsive with the essence of the Consumers Act, the
law which sets the standards of suitable conduct for business and industry. It has even
been argued that charging parking fees had become a profitable “sideline” for malls and
commercial establishments and that free parking should be part of the services these
establishmenis provide to their customers.

With the country’s rapidly accelerating economic and physical development,
attended by urbanization, rising volume of vehicle ownership and greater consumer
needs, it becomes imperative that necessary legislation be made which reconciles the
strong support for fare with the business interests of shopping
establishments.

The provision of free, adequate and secured parking areas in our shopping malls
is a public service and a matter of courtesy to consumers who patronize their
establishments. This interpretation is not only reasonable and logical but finds support
in the actuai practice in other couniries like the United States of America where parking
spaces owned and operated by mall owners are free of charge. Moreover since the
success of such a business primarily depends upon the goodwill of its patrons, the
provision of parking areas significantly improves the desirability of the area in as much
as the profitability of surrounding businesses because consumers will always prefer to

go mails safe and available is ensured

In order to avoid the abuse of the provisions of this Bill for free parking and
safeguard the interests of mall owners, this Act includes provisions that seek to
guarantee to mall owners that motorists using their parking spaces are really customers
of their establishment through receipts for purchases for a set minimum amount. It also
seeks to balance the revenues that may be lost by establishments currently collecting
parking fees with the provision of tax benefits.


Through this Act, the State can effectively advocate consu!
without prejudice to the business interests of mall owners. With
the immediate approval of this bill is strongly requested.

r welfare together
is purpose in mind,

IL” PANCHO
Represenjative, 2 District of Bulacan


HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO.26 73

INTRODUCED BY HONORABLE GAVINI “APOL” C. PANCHO

“AN ACT PROVIDING FOR FREE PARKING IN ALL MALLS AND SHOPPING
ESTABLISHMENTS AND PROVIDING PENALTY FOR VIOLATION THEREOF”

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

SECTION 1. Short Title. This Act shall be known as the “Free Parking Act of
2016”.

SECTION 2. Deciaration of Policy. it is hereby deciared the policy of the State
to protect the interest of the consumer, promote his general welfare and to establish
standards of conduct for business and industry. To this end the State shall ensure the
improved quality of life for all and improve consumer access to and the of availability
service related components like free parking for all patrons of malls and shopping
establishments pursuant to this Act.

SECTION 3. Scope. This Act shall cover the use of established parking areas in
all malls and shopping establishments by their legitimate patrons. Legitimate patrons
under this Act are consumers who have made actual purchases or availed of the
shopping malll products and services.

SECTION 4. Free Parking. Legitimate patrons shall be provided free use of well
maintained and secure parking areas in all malls and shopping establishments provided
that they reach an aggregate minimum purchase (with receipts) of P500 from the
establishment and have used the parking space for less than six (6) hours.

SECTION 5. Tax Benefits. To balance costs of providing security and
maintenance of designated parking areas for their patrons, owners of malls and
shopping establishments shall be provided tax benefits as may be determined in the
Implementing Rules and Regulations of this Act.

SECTION 6. Penalties. Mall and shopping establishment owners who will be
found violating the provisions of this act will shall be punished by a fine not exceeding
fifty thousand pesos (P 50,000.00) and cancellation of the establishment's business
permit or its nonrenewal, should there be an application pending in concerned Local
Government Unit.

SECTION 7. Implementing Rules and Regulations. Within ninety (90) days
after the effectivity of this Act, the Department of Trade and Industry (DTI) together with
the Bureau of Internal Revenue (BIR), the Department of Interior and Local
Govemment (DILG), and the Philippine Retailers Association shall jointly promulgate
the necessary implementing rules and regulations to carry out the purposes of this act.


SECTION 8. Separability Clause. If for any reason, any provision of part hereof
is declared invalid, the other provisions not affected thereby shall remain in full force
and effect.

SECTION 9. Repealing Clause. — Any provision of the law, presidential decree,
executive orders, rules and regulations contrary to the provision of this Act is hereby
repealed, amended or modified accordingly.

SECTION 10. Effectivity. - This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in at least two (2) newspapers of general
circulation, whichever comes eariier.

Approved,