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12 DATE:

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

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 6776

Introduced by:
HONORABLE REPRESENTATIVES PANTALEON D. ALVAREZ, CESAR V.
SARMIENTO, JUAN PABLO P. BONDOC, BAYANI F. FERNANDO, ANNA

KATRINA M. ENVERGA, RENATO UNICO, WINSTON CASTELO, EMI CALIXTO

RUBIANO, ALFRED D. VARGAS

AN ACT
CREATING THE LAND TRANSPORTATION AUTHORITY REPEALING FOR THE
PURPOSE EXECUTIVE ORDER NO. 202 AND EXECUTIVE ORDER NO.226,
WHICH CREATED THE LAND TRANSPORTATION AND REGULATORY
BOARD AND LAND TRANSPORTATION OFFICE RESPECTIVELY

EXPLANATORY NOTE

The transportation industry has always been a major cornerstone in national
development. An efficient transport system ensures the efficient movement of goods
promotes economic activity in both rural and urban areas and encourages the flow of

investment that would surely enhance our country’s economic growth.

The vision for the Philippine Transport System was initially drawn from the
declaration of policy in the creation of the Land Transportation Regulatory Board
("LTFRB") created through Executive Order No. 202, series of 1987 and Land


Transportation Office (“LTO”) created by virtue of Executive Order No. 125 and as
amended by Executive Order No. 226 dated July 25, 1987. However, important
considerations should be embarked on to create a central agency that will consolidate
the functions of the LTO and LTFRB, in order to avoid confusion as to which agency is
tasked to maintain land transportation law and order in the Philippines. Further, a more
comprehensive transportation policy needs to take into account the varied and complex
areas in the land transportation industry. Existing policies affect transportation in

different ways. Some policies are inadequate, ineffective and are already obsolete.

As we move towards progress, we need a Land Transportation Authority that

will address the challenges that we are facing today.

In view of the foregoing, the Approval of this Bill is earnestly sought

-~
EMI CALIXTO RUBIANO FRED D. VARGAS


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

SEVENTEENTH CONGRESS

Second Regular Session

6776

HOUSE BILL NO.

Introduced by
HONORABLE REPRESENTATIVES PANTALEON D. ALVAREZ, CESAR V.
SARMIENTO, JUAN PABLO P. BONDOC, BAYANI F. FERNANDO, ANNA
KATRINA M. ENVERGA, RENATO UNICO, WINSTON CASTELO, EMI CALIXTO
RUBIANO, ALFRED D. VARGAS

AN ACT
CREATING THE LAND TRANSPORTATION AUTHORITY REPEALING FOR THE
PURPOSE EXECUTIVE ORDER NO. 202 AND EXECUTIVE ORDER NO.226,
WHICH CREATED THE LAND TRANSPORTATION AND REGULATORY
BOARD AND LAND TRANSPORTATION OFFICE RESPECTIVELY

Be it enacted by the senate and House of Representatives of the Philippines in Congress

assembled

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ARTICLE I
‘CREATION, POWERS AND FUNCTIONS

SECTION 1. Short Title. - This act shall be known as the “Land Transport Act of 2017.”

SECTION 2. Policy and Objectives. - The State recognizes that land transportation is a
vital and integral aspect of Philippine society and its economy. Given that it is vested
with public interest, it is the duty of the State to ensure safe, reliable, efficient, adequate,

modern, well-equipped, economic, and modern land transportation service.

SECTION 3. Applicability. - This Act shall apply to all public land transportation
entities in the Philippines.

SECTION 4. Land Transport Authority. - The Land Transportation Authority (“LTA”)
is hereby created which shall replace the Land Transportation Regulatory Board
(“LTFRB”) created through Executive Order No. 202, series of 1987 and Land
Transportation Office (“LTO”) created by virtue of Executive Order No. 125 dated
January 20, 1987 and Executive Order No. 125-A dated April 13, 1987, as amended by
Executive Order No. 226 dated July 25, 1987. The Authority shall be an attached agency
of the Department of Transportation and shall absorb the powers and functions of the
LTFRB and the LTO.

SECTION 5. Powers and Functions of the Land Transport Authority. - The Authority

shall have the following powers function:

a. Prepare the National Land Transportation Development Program which will provide
a comprehensive roadmap for transport development initially covering Metro
Manila, Metro Cebu and Metro Davao and all other Urbanized Cities and

municipalities through the following but not limited to: traffic management,

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construction of expressways both intercity and urban areas, improvement of bus
and jeepney services, rationalized route structure, improved terminals and
interchange facilities and proposed feasibility studies to the viability of a
suburban railway system and integration of the fare structure and ticketing

system between routes as well as modes.

. To evaluate and package projects and investment programs; and for this

purpose, may call on any agency or organization whether public or private
whose development plans include land transportation as an integral part thereof,

to participate in the preparation and implementation of such programs;

. To establish emission control and standards, Road Safety and Inspection and

Maintenance to achieve a smoke-free, accident-free and effective road safety
management system, and to establish at least one (1) Motor Vehicle Inspection
System in each Region, initially, which will determine compliance with emission

controls, standards, and road worthiness of all Public and Private Vehicles;

|. To formulate strategies towards vehicular modernization and the establishment

ofa sustainable transport system. The Authority may grant incentives such as the
grant of discount to registration fees to vehicles that use electric, other emission

free energy sources or other forms of sustainable transport;

Enter into contracts with domestic and foreign companies for services and
products duly approved in the National Land Transportation Development
Program as determined by National Economic and Development Authority and
the Department of Transportation.

Promulgate, administer and enforce standards of measurements, designs, and

rules and regulations requiring owners of motor vehicles and operator of public

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land transportation services to equip, install and provide in their utilities and in
their stations such devices, equipment, facilities and operating procedures and
techniques as may promote safety, protection, comfort and convenience to
persons and property in their charge, as well as the safety of persons and

property within their areas of operation;

. To prescribe fines and regulate routes of service, economically viable capacities

and zones or areas of operation of public land transportation services provided
by motorized vehicles in accordance with the public land transportation
development plans and programs approved by the Department of
Transportation;

. To issue, amend, revise, suspend or cancel Certificates of Public Convenience or

permits authorizing the operation of public Land Transportation services
provided by motorized vehicles, and to prescribe the appropriate terms and

conditions therefore;

To order the impounding of motor vehicles and confiscation of plates or the

arrest of violators of laws, rules and regulations governing land transportation;

To determine, prescribe and approve and periodically review and adjust,
reasonable fares, rates and other related charges, relative to the operation of

public land transportation services provided by motorized vehicles;

. To issue preliminary or permanent injunctions, whether prohibitory or

Mandatory, in all cases in which it has jurisdiction, and in which cases the

pertinent provisions of the Rules of Court shall apply;

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m.

To punish for contempt of the Authority both direct and indirect, in accordance
with the pertinent provisions of, and the penalties prescribed by the Rules of

Court;

To issue subpoena and subpoena duces tecum and to summon witnesses to appear

in any proceedings of the Authority, to administer oaths and affirmations;

. To conduct investigations and hearings of complaints for violation of the public

service laws on land transportation and of the Authority's rules and regulations,
orders, decisions and/ or ruling and to impose fines and/ or penalties for such

violations;

. To review motu proprio the decisions/ actions of the Regional Regulatory Office

herein created;

. To promulgate rules and regulations governing proceedings before the

Authority and the Regional Regulatory Office: Provided, that except with respect
to paragraphs d, e, f and g hereof, the rules of procedure evidence prevailing in
the courts of law should not be controlling and it is the spirit and intentions of
said rules that the Board and the Regional Regulatory Offices shall use every and
all reasonable means to ascertain facts in its case speedily and objectively and
without regard to technicalities of law and procedures, all in the interest of due

process;

To fix, impose and collect, and periodically review and adjust, reasonable fees

and other related charges for services rendered;

To formulate, promulgate, administer, implement and enforce rules and

regulations on land transportation public utilities, standard of measurements

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and/or design, and rules and regulations requiring operators of any public land
transportation service to equip, install and provide in their stations such devices,
equipment facilities and operating procedures and techniques as may promote
safety, protection, comfort and convenience to persons and property in their
charges as well as the safety of persons and property within their areas of

operation;
s. To coordinate and cooperate with other government agencies and entities
Concerned with any aspect involving public land transportation services with

the end in view of effecting continuing improvement of such services;

t. To function and maintain a registry of all motorized vehicles and to issue

driver's licenses to deserving applicant drivers;

u. To coordinate with the Department of Education (“DEPED”) in the licensing and

supervision of motorize vehicle driving schools, attendance of which shall be
mandatory for a first time non-professional license applicants and professional

license applicants and to all professional license renewal applicants;

v. To implement and enforce laws and policies on Land Transportation and

deputize traffic law enforcers;

w. To perform such other functions and duties as may be provided by law, as may

be necessary, or proper or incidental to the purposes and objectives of this Act.

SECTION 6. Board of Directors - The Authority's overall directions and thrusts shall
be provided and approved by the Board of Directors, hereinafter referred to as the
Board which shall be composed of the following:

(a) Chairman with the same rank, salary and privileges of an Undersecretary;

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(b) One (1) member of the Board who is a member of the Bar and shall have engaged
in the practice of law in the Philippines for at least five (5) years;

(©) One (1) member with a degree in Public Transportation Planning;

(d) One (1) member should be a holder of a degree in engineering; and

(e) One (1) member a holder of a degree in management.

SECTION 7. Appointment of Members of the Board. -The members of the Board shall
be appointed by the President of the Philippines and shall serve for a term of six (6)
years, except that any person appointed to fill-in a vacancy shall serve only the
unexpired term of his/her predecessor in office. All members of the Board shall be
professionals of recognized competence and expertise. In shortlisting the nominees for
the members of the Board, the President of the Philippines shall give utmost
consideration to the nominees recommended by Secretary of Transportation

recommending at least three (3) names for every vacant position.

The salaries and compensation and other benefits of the Board shall be

determined by the Salaries Standardization Act and other pertinent laws.

SECTION 8. Supervision and Control over the Board. - The Secretary of Transportation,
through his duly designated Undersecretary, shall exercise administrative supervision

and control over the Authority.

SECTION 9. Powers and Functions of the Board. - The Board as the governing and
policy-making body of the Authority and shall exercise the following powers and
functions:
(a) Determine the organizational structure of the Authority, define the duties
and responsibilities of all officials and employees and adopt a
compensation and benefit scheme as determined by the Salaries

Standardization Act;

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(b) Prepare the annual and supplemental budgets, if necessary, of the
Authority; and

(©) Submit an annual report on the operation and accomplishments of the
Authority to the President of the Philippines, Senate President, and

Speaker of the House of Representatives.

SECTION 10. Powers and Functions of the Chairman. - The Chairman shall exercise

the following powers and functions:

(a) Call and preside over the meetings of the Board and see to it that the
policies, programs and rules and regulations promulgated by the Board

are properly implemented;

(b) Call on stakeholders in the formulation and implementation of a
comprehensive and integrated plan for the development of the Land

Transport;
(©) Identify solutions to key issues and concerns, taking into account related
risks, affected parties and impact, in coordination with the Board and key

stakeholders;

(d) Represent the Board in all dealings or transactions with other government

agencies and offices, and with the private sector;

(e) Accept, on behalf of the Authority, donations, contributions, grants and
bequests or gifts, in cash or in kind, from foreign governments,

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international agencies or organizations, private entities or any individual

for purposes that will realize the mandate of the Authority; and

() Call on any government agency or office, LGUs and the host communities
to assist the Authority in addressing issues and concerns relating to the

implementation of the programs, projects and activities of the Authority.

SECTION 11. Executive Officers. - The Authority shall be managed by a Director
General with the rank, salary and qualifications equivalent to that of a Department
Assistant Secretary, who must have sufficient knowledge and background in land
transportation management. He/she shall be appointed by and shall serve at the
pleasure of the President and shall serve for a fixed term of four (4) years, unless sooner
removed by the President of the Philippines upon the recommendation of Board. The
President shall act upon any recommendation for removal of the Director General

within 90 days from receipt of the same.

The Director-General shall be assisted by four (4) Directors level IV with Salary Grade
28 for Administration and Finance, Plans and Operations, Franchising, and Law
Enforcement and Adjudication. The Chiefs should preferably be a Career Executive
Service Officer (CESO) possessing at least ten (10) years of experience and practice in

land transportation management and administration.

SECTION 12. Powers of the Director-General. - As Chief Operating Officer of the
Authority, the functions and powers of the heads of the LTO and LTFRB, as well as
other laws otherwise not expressly defined in this Act, are now transferred and vested

to the Director-General of the Authority, including, but not limited to, the following:

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(a) Implement, enforce and apply the policies, programs, guidelines,
procedures, rules and regulations promulgated, prescribed, issued and
adopted by the Authority;

(b) Manage the affairs of the Authority and ensure the smooth operational

efficiency of the national land transportation system;

(©) Sign contracts, approve expenditures and appoint and discipline
employees below the level of Presidential appointees;

(d) Submit an annual budget to the Board not later than one (1) month before

the commencement of the ensuing year;

() Undertake research, studies, investigations, projects and other related
activities, and submit reports and recommendations to the Board for its
information and or approval; engage the services of experts/consultants
either in full time or part time basis as may be required in the performance
of his functions and duties as maybe determined by him, subject to the
approval of the Board;

(® Perform such other functions and duties as the Board may assign from

time to time.

SECTION 13. Retirement Package for the Chairman and Director General- The
Chairman and the Director General of the Authority shall, upon completion of their
term or upon becoming eligible for retirement under existing laws, be entitled to the
same retirement benefits and the privileges provided for the Presiding Justice and
Associate Justices of the Supreme Court, respectively.

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SECTION 14. Enhancement of Technical Competence. - The Authority shall establish
rigorous training programs for its staff for the purpose of enhancing the technical
competence of the Authority in the following areas: evaluation of technical performance
and monitoring of compliance with service and performance standards, performance-
based rate-setting reform, environmental standards and such other areas as will enable
the Authority to adequately perform its duties and functions. The same shall be
appropriated in the General Appropriations Act.

SECTION 15. Staffing Pattern. The Director-General subject to the approval of the
Board shall determine the staffing pattern, the number of personnel and field offices of
the Authority, the functions of the central office staff, the regional and district offices;
define their duties and responsibilities and fix their qualifications, salaries and other

emoluments.

The Board shall act on the recommendation within (30) days from its submission,
otherwise, the recommendation shall be deemed approved and the same shall be

implemented within 90 days from approval thereof.

SECTION 16. Appointment and Discipline of Personnel. All officials of the Authority,
except those appointed by the President, shall be selected and appointed on the basis of
merit and fitness as established in a merit system program of the Authority consistent

with Civil Service laws and regulations.

SECTION 17. Decision of the Authority; Appeals and Review. - The Authority, in the
exercise of its powers and functions, shall sit and render its decision en banc. Every
decision, order, or resolution of the Authority must bear the concurrence and signature
of at least majority of its member thereof. A majority of the number of members as fixed
in this law shall constitute a quorum for the transaction of business, and every decision

of at least a majority of the directors present at a meeting at which there is a quorum

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shall be valid, except for the election of officers which shall require the vote of a

majority of all the members of the board.

The decisions, order or resolution of the Authority shall be appealable to the Secretary
within thirty (30) days from receipt of the decision: Provided, that the Secretary may
motu propio review any decision or actions or the Authority before the same becomes

final.

SECTION 18. Creation of the Regional Regulatory Offices. - There shall be a Regional
Regulatory Office in each of the administrative regions of the country which shall be
headed a Regional Director with Salary Grade 27 and rank of Director II.

SECTION 19. Appeals. - The decisions, orders and resolutions of the Regional
Regulatory Offices shall be appealable to the Authority within thirty (30) days from

receipt of the decision.

ARTICLE II
LEGISLATIVE FRANCHISE AND
REGULATION OF PUBLIC UTILITY VEHICLES

SECTION 20. Rationalization of Issuance of Franchises for PUB, PUVs, PUJs, taxis
and other similar services. - The Authority, in coordination with the National Economic
Development Authority (“NEDA”), Department of Interior and Local Government
("DILG"), and other key stakeholders and associations shall conduct a Land
Transportation Study to determine the actual need for public transportation in the
various routes to objectively determine the actual number of public buses, jeeps, taxi’s

and other public utility vehicles as well as TNVs needed by the public in a certain route,

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road, street, locality or area. This study will serve as basis for the issuance of a

Legislative Franchise.

SECTION 21. Franchise. - No person shall commence or conduct the business of

operating public transportation without first obtaining a franchise. Provided, that the
Authority has already determined and set the guidelines for the rationalization of the
Issuance of Franchises. Provided, further, that public transport entities found to
circumvent this provision through the use of corporate fiction shall have all their

franchises ipso facto revoked.

The Authority, in granting a Certificate of Public Convenience and Necessity (“CPCN”),
upon the applicant's compliance with the Authority's requirements, and the approved
legislative franchise, may impose such conditions as to duration and termination of the
privilege, concession, or standard or technical aspects of the equipment, rates, or

service, not contrary to the terms of the franchise.
The Authority, however, shall not grant a subsequent CPCN for another area of service
nor extend the area service coverage of an entity which has not been satisfactorily

compliant to the terms and conditions of its original franchise.

SECTION 22. Franchise Requirements. - The holder of such legislative franchise issued

should have the following basic requirements:
a. Should comply with the minimum amount of capitalization in order to ensure
that only those operators with adequate financial capacity are allowed to operate

public transport.

b. For PUB - Minimum capitalization of Thirty Million Pesos (Php 30,000,000.00)..

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c. For PUJ, PUV, Taxi and other similar services - Minimum capitalization of Ten
Million Pesos (Php 10,000,000.00)

SECTION 23. Franchise Conditions. - The holder of such legislative franchise issued

should have the following conditions:

a.) The holder must comply with the constitutional and statutory requirements
on maximum foreign ownership throughout the duration of the holder's
franchise.

b,) To those holders which already have existing franchises, they are given a
period of six (6) months from the grant of legislative franchise within which

to comply with the paid up capital requirement.

c.) The holder must have the adequate experience to operate and maintain its
transport units to ensure safety and efficiency. For this reason, the holder
must have at least ten (10) years of relevant experience as an operator, or

working for an operator, of public transport of good standing.

d.) The holder must also have the adequate technical and maintenance support
facilities capability to operate public transport. The holder must show proof
of ownership of office/s, maintenance building, inspection pit, garage, or
terminals and other maintenance support facilities, sufficient in size, all of
which must be devoted exclusively for public transport activities. In addition,
the applicants must show proof of ownership of the mandatory and
indispensable machines and equipment to sufficiently support the
maintenance requirement to operate taking into account the number of units

the holder hopes to operate.

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e) The holder should maintain adequate personnel for its finance,

administration, operation and maintenance group or department. Such
department cannot be outsourced to contractors, or any other entity not

directly connected to the holder, particularly the maintenance personnel.

Legislative franchise cannot be sold or transferred, whether directly or
indirectly, to any other entities. Provided further, that such holder of legislative
franchise may offer its business to go public through Initial Public Offering in
the Philippine Stock Exchange (PSE) subject to the qualifications and
requirements of the PSE.

g.) The Authority, in pursuant to its authority to grant Certificate of Public

Convenience and Necessity (“CPCN”) to the qualified holders of legislative
franchise may impose such other conditions necessary for the protection of
the riding public and the interest of the government, such as but not limited
to the duration and termination of privilege, concession, financial and
technical capability, infusion of additional capitalization, disciplinary
sanctions, technical standards of equipment to be used, fare rate, or kind of
service, and any other aspects which the Authority deems it necessary to

regulate.

h,) No subsequent CPCN shall be granted for another service area or to extend

the area of service coverage of an entity which has failed to satisfactorily
comply with its commitment to the Authority to provide a particular service

in the prior authorized area.

SECTION 24. Administrative Permits. Notwithstanding the provision of any law to the
contrary, the issuance of permits to operate public utility vehicles shall be
administratively processed based on rules and regulations/guidelines that the

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Authority shall promulgate within sixty (60) days, subject to the approval of the Board.
Without prejudice to the provisions of R.A. 7160, otherwise known as the Local
Government Code of 1991, the permit to operate public utility vehicles shall be issued
by the Authority.

SECTION 25. Requirement for Parking Spaces or Terminal Facility- Any prospective
operators, or operators with residence or business address in Highly Urbanize Cities,
shall be required to execute an affidavit which shall be acknowledged before a notary
public, attesting to the availability of a terminal facility.

The affidavit executed by the operator shall be presented to the Legislative Franchise
Committee as a pre-requisite for registration. No franchise permit shall be issued for
operators unless the owner thereof submits an affidavit that parking spaces and

facilities shall be made available to their units.

SECTION 26. Operation of Public Utility Vehicles. - No motor vehicle shall be operated
as a public conveyance or for hire without possessing a valid and subsisting franchise

and/or permits issued by the Authority.

Alll existing franchises and permits issued prior to the effectivity of this Act shall remain
valid up to the date of its expiry as indicated in the certificate or permit. Any
subsequent transaction related thereto shall now be processed and issued pursuant to

the rules and regulations of the Authority.
SECTION 27. Rate Fixing. - For purposes of fixing of rates of public utility vehicles, the

Director-General shall undertake the necessary studies, after due consultation with the

involved sectors, and recommend the same to the Board for approval.

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SECTION 28. Authority to Impose Penalties. - The Director-General is empowered to
impose penalties and sanctions in the form of cancellation, revocation, suspension, fines
and other forms of penalties allowable by law, or any combination thereof, for
violations of the terms and conditions of the permit. Subject to the approval of the
Board, the Director-General shall promulgate a set of guidelines containing the
administrative procedures in the imposition of sanctions, including the schedule of

penalties.

SECTION 29. Equality of Treatment in the Land Transport Industry. - Any advantage,
favor, privilege, exemption, or immunity granted under the existing franchises of the
current franchise holders, shall ipso facto become part of such franchises except those
which concern territorial coverage, duration and kind of service. As such, the same will

be accorded to the holders immediately and unconditionally.

In case of suspension of unit due to vehicular accident, the suspension shall be
imposed only to the unit primarily involved in the accident. Any other units under the
franchise will not be affected unless the Authority, after due notice and hearing, deems

it necessary to suspend the entire units within the franchise.

ARTICLE III
ACCREDITATION OF TRANSPORTATION NETWORK COMPANIES

SECTION 30. Accreditation of Transport Network Companies (“TNC”) - A TNC shall
mean as an “organization whether a corporation, partnership, or sole proprietor that
provides pre-arranged transportation services for compensation using an internet-based
digital technology application or digital platform technology to connect passengers

with drivers.

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The Certificate of TNC Accreditation shall be granted to TNC’s providing internet
based digital technology application or digital platform technology to facilitate
transportation of passengers. TNCs, prior to its application for accreditation by the

Authority, must first secure a franchise from Congress.

SECTION 31. Application for Accreditation - Application for the Issuance of a
Certificate of Accreditation shall be made in writing on a form provided by the
Authority, and signed and sworn to by the applicant, or if the applicant is a juridical
entity, by its duly authorized representative. Each application, in addition to other

documents that are required, shall submit the following:

a.) Business permit or Certificate of Incorporation duly issued by Department of
Trade and Industry or Security and Exchange Commission;

b.) Certificate of registration duly issued by the Bureau of Internal Revenue (BIR);

c) Business model proposal

d.) Business Permit duly issued by the Local Government where the applicant's
principal office is located;

e.) Terms of Service for Passengers;

£.) Terms of Service for TNVS Operators;

g,) Proposed Fare rates and/or Service Charges; and

h,) Proof of Applicant's Financial Capability to pay all judgment and awards that

may be rendered for any cause arising out of the operation of a TNC business.

As a Transport Network Company (TNC), an owner/operator must pay an
accreditation fee to get a 2-year certificate of accreditation from the committee and
secure a franchise by submitting the necessary legal documents before starting

operations. Non-compliant vehicles will be caught and apprehended.

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ARTICLE IV
TRANSITORY PROVISIONS

SECTION 32. Abolition. The Land Transportation Office and the Land Transportation
Franchising and Regulatory Board, the Traffic Enforcement Group of the Metropolitan
Manila Development Authority are hereby abolished. All properties, assets and
liabilities, all powers, functions and duties, rights and courses of actions, vested by law
or exercised by said abolished offices and its predecessors are hereby transferred to the

Authority.

SECTION 33. Early Retirement Incentive Program. - The Board shall organize the
Authority prioritizing the absorption of incumbent officers and employees from the

abolished agencies, as far as practicable.

All affected Officers and Employees who are qualified to receive retirement benefits
under Republic Act Nos. 1616 and 660 shall be entitled to an additional one (1) month

salary for every year of service.

Any Officers or Employees may avail of the same benefits as provided by the
immediately preceding paragraph; provided that they voluntarily separate or retire
from the service during the transition period; Provided, further, that they are qualified
to receive retirement benefits under RA 1616 and RA 660.

“Affected Officers and Employees” as defined by this Act, shall be all Officers and
Employees who are involuntarily removed or separated from the service due to the

abolition of their respective agencies by this Act.

SECTION 34. Organization of the Authority. - Any officer/employee who availed the

benefits of the foregoing provisions or who would opt to retire or be separated as a

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result of the rationalization efforts of the LTO and LTFRB shall not qualify for
reemployment and appointment in any agency of the Executive Branch, including
GOCCs/Government Financial Institutions (GFls), except in educational institutions
and hospitals, within a period of seven (7) years from the date of retirement, separation

or resignation.

SECTION 35. Saving Clause. - Unless otherwise provided in this Act, rights or
privileges vested or acquired under the provisions of any other law, rules and

regulations prior to the effectivity of this Act shall remain in full force and effect.

SECTION 34. Implementing Rules and Regulations. - The Authority shall adopt rules
and regulations to implement the provisions of this Act within sixty (60) days from the

date of its approval.

SECTION 36. Congressional Oversight Committee. - A Congressional Oversight
Committee, hereinafter referred to as the "Committee", is hereby constituted in
accordance with the provisions of this Act. The Committee shall be composed of the
Chairman of the Senate Committee on Public Services and Chairman of the House
Committee on Transportation and four (4) additional members from each House to be
designated by the Senate President and the Speaker of the House of Representatives,
respectively. The Committee shall, among others, in aid of legislation:

(a) Monitor and ensure the proper implementation of this Act;
(b) Review the collection performance of the Authority;

(0) Review the proper implementation of the programs of the Authority and the
use of its collected fund.

In furtherance of the hereinabove cited objectives, the Committee is empowered to
require the Authority to submit all pertinent information including, but not limited to,

its collection performance data and its annual audited financial statements certified by

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the Commission on Audit.

The Congressional Oversight Committee shall be in existence for a period of five (5)
years, and thereafter, its oversight functions shall be exercised by the Senate Committee

on Public Services and the House Committee on Transportation acting separately.

ARTICLE VI
FINAL PROVISIONS

SECTION 37. Separability Clause. - If any part or provision of this Act shall be declared
unconstitutional, the other parts or provisions hereof which are not affected thereby,

shall continue in full force and effect.

SECTION 38. Repealing Clause. - All laws, decrees, executive orders, rules and
regulations or parts thereof inconsistent with the provisions of this Act are hereby
repealed or modified.

SECTION 39. Effectivity. - This Act shall take effect fifteen (15) days after its complete

publication in at least newspapers of general circulation.

SECTION 40. Transitory Provision - All land transport entities which are lawfully
operating at the time of the effectivity of this Act, may continue their operations under
the terms and conditions approved by the LTERB, provided that said transport services
and public transport services and public transport entities shall secure a legislative

franchise within two (2) years from the effectivity of this Act.

Approved,

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