EIGHTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES
H.B.No,_4544

Introduced by Rep. Vilma Santos-Recto
6" District of Batangas

AN ACT
PROVIDING FOR A MAGNA CARTA FOR THE ROAD TRANSPORTATION
SECTOR

EXPLANATORY NOTE

The Philippine Constitution mandates the protection and enhancement of the right of
all people to human dignity and the reduction of social and economic inequities. The State
also guarantees the rights of all sectors, including those in the road transportation industry, to
participate in the policy and decision-making processes affecting their rights and benefits as
provided by law.

‘Transportation provides the physical link in every economic and social activity. It is
therefore legitimate and indispensable to safeguard an industry that is vital to economic
growth and social development. It plays a crucial role in everyone's life as it meets the
demand for the sustainable mobility of both people and goods.'

For the past four decades, the perennial problems of the road transportation industry
remain unsolved. The high cost of fuel, abusive traffic law enforcers, problems in the
issuance of franchise of public utility vehicles, proliferation of colorum vehicles, poor road
conditions, traffic congestion, and air pollution immensely affect the road transportation

sector.

This measure aims to provide for the institutionalization of the participatory
mechanisms for the road transportation sector by including at least one representative from

* nttp://www.iru.org/en_about-road-transport


the sector in the governing boards of government instrumentalities in the national and local

level.

‘As a piece of legislation that intends to empower and comprehensively protect the
rights of the road transportation sector, particularly the road transportation workers, the
following provisions are included:
) Creation of a Road Incident Complaints and Investigation Office;
b) Free legal assistance, counseling and representation for indigent members of the
road transportation sector; and
c) Mandatory enrollment of road transportation workers in institutions providing
employee benefits such as Social Security System, Philhealth and Pag-IBIG Fund.

Likewise, the proposed legislation aims to promote and develop the road
transportation sector by providing short-course trainings to be designed and conducted by the
Technical Education and Skills Development Authority. The bill requires the construction of
a free common transportation terminal facilities and creation of a One-Stop Transportation
Services Office as well as the establishment of a Road Transportation Surety Fund Program.

With the foregoing considered, immediate approval of t


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EIGHTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES

H.B.No, 4944

Introduced by Rep. Vilma Santos-Recto
6" District of Batangas

AN ACT
PROVIDING FOR A MAGNA CARTA FOR THE ROAD TRANSPORTATION
SECTOR

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

Section 1, Title. - This Act shall be known as the “Magna Carta for the Road
Transportation Sector Act”.

Sec. 2. Declaration of Policy. ~ It is the declared policy of the State to guarantee the
rights of those in the road transportation industry to participate in the policy and decision
making processes affecting their rights, welfare and privileges. The State shall provide a
mechanism to uplift the standard of living and quality of life of those in the road
transportation sector. They must be empowered to meet their minimum basic needs, through
partnership with the government. It is likewise vital that the State shall recognize and

encourage the road transportation sector as its partner to achieve the goals towards effective
delivery and implementation of a wide range of safe, efficient and affordable road
transportation services to the people.

To attain the foregoing policy:

(a) _ The State shall provide full access to government support and services
to the road transportation sector;
(b) The State shall prioritize investments in  transportation-related

programs to enable the road transportation sector to participate in the country’s
development; and

© The State shall formulate national policies and guidelines for the
integrated and comprehensive road transportation programs in the national and local
levels.


Sec. 3. Definition of Terms. — As used in this Act, the following shall mean:

(@)Road Transportation Sector — shall refer to operators, owners and their
‘employees engaged in the movement of people and commodities for a fee; passengers;
and those in transportation-related businesses who provide goods and services to the
general public.

(b)Road Transportation ~ shall refer to the transportation of passengers and
goods on the road, which includes but is not limited to public utility vehicles such as
buses, jeepneys, taxis, TNVS providers, coaches, trucks, motorcycles and tricycles.

© National Road Transportation Group — shall refer to the representative
association to be established and organized to cater to a national constituency, and
whose mandate includes the protection of the interests and rights of road transportation
operators, owners and workers; passengers and those in transportation-related
businesses to ensure economic growth and prosperity through the sustainable mobility
of people and goods.

(d) Road Transportation Education — shall refer to non-degree programs aimed to
provide education and training in the planning, design, construction, and operation of
vehicles for road transportation.

Sec. 4. Right to Organize and to Participate in Democratic Exercises. ~ Every road
transportation association shall have the right to organize and determine its programs and
projects on road transportation subject to their charter and bylaws: Provided, That it does not
infringe on the basic rights and freedom of those belonging to the road transportation sector:
Provided, further, That the road transportation sector shall also have the right to participate in
the deliberation of issues and in the formulation of policies that affect them, including the
guarantee of representation in the governing boards or appointment in goverment
instrumentalities.

Sec. 5. Right Against Abusive Traffic Law Enforcers. ~The State shall establish a Road
Incident Complaints and Investigation Office directly under the Department of Justice to
receive and act on complaints against traffic abuses.

Sec. 6. Right to Collective Bargaining. — All road transportation workers shall have the
right to engage in collective bargaining with road transportation operators and owners to
promote the interests of employees such as, just compensation, health benefits and social
security, among others.

Sec. 7. Right to Free Legal Assistance. An indigent member of the road transportation
sector who becomes a party to a transportation-related civil and/or criminal case, may avail of

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free legal assistance, counseling and representation before the courts from the Public
Attomey’s Office, subject to existing rules and regulations.

Sec. 8. Social Protection. ~ The road transportation workers shall be enrolled in the
Social Security System (SSS), Philhealth and Pag-Ibig Fund. The employer or operators shall
deduct from the workers’ income or salary the monthly social security contribution based on
the respective schedule of contributions and remit their corresponding share of contribution to
the SSS, Philhealth and Pag-IBIG: Provided, That, if the road transportation worker is paid
on a commission basis, the monthly premium payments to SSS, Philhealth and Pag-IBIG
shall be shouldered by the worker but, the operator may assist in facilitating the remittance to
said institutions.

Sec. 9. Creation of a National Road Transportation Group. ~ There shall be established
a National Road Transportation Group to represent the road transportation sector in policy-
making and decision-making affairs in the national and local level.

There shall be a national representative in the governing boards and government
instrumentalities, to include, but not limited to, the Land Transportation Franchising and
Regulatory Body (LTFRB), Toll Regulatory Board (TRB), Land Transportation Office
(LTO) and Department of Transportation (DOTr). It shall have its set of officers elected in
an annual election.

The National Road Transportation Group shall be involved in activities which include,
but are not limited to:

(a) Recommend policies that will empower the road transportation sector;

(b) Monitor all activities, legislation, policies and events that will impact
on the road transportation sector;

© Dialogue with intergovernmental bodies and all other stakeholders

concerned on the role and importance of the road transportation industry, of its position
on various issues, and sharing of reliable data and information;
(4) Cooperate with governing and legislative bodies in order to contribute

to informed and effective legislation, to maintain balance between the needs and

interests of all; and

© Provide services and information to road transportation operators and
workers, such as but not limited to reporting legislative developments, legal assistance,
professional training and road transportation credit assistance.


Sec. 10. The Road Transportation Charter and Bylaws. ~ There shall be a Road
Transportation Group charter and by-laws crafted by the heads or representatives of all
accredited road transportation associations and ratified by a simple majority of all its
members.

Sec. 11. Qualifications of Road Transportation Representatives. - No person shall be
elected as a Road Transportation Group representative unless he is a citizen of the
Philippines, at least thirty (30) years of age, able to read and write, a bona fide member of
any legitimate road transportation association for at least one (1) year prior to the election,

and has never been convicted of any administrative, civil or criminal offense involving moral
turpitude.

If, at any time, an officer or representative ceases to be a bona fide member of the
represented transportation group, through expulsion, resignation, or any manner of removal
sanctioned by its association and by-laws, the position shall automatically be declared vacant
and shall be filled up accordingly as provided in the charter and by-laws.

Sec. 12. Creation of a One-Stop Transportation Services Office. — A one-stop
processing and approval center shall be created at least in every province and city to facilitate
and expedite the business application process, enrollment in social security, Pag-IBIG and
Philhealth benefits and to serve existing and potential investors in the road transportation
sector in order to enhance the investment climate. The DOTr, LTO, LTFRB, SSS, Philhealth,
Pag-IBIG and other government agencies concerned shall collaborate, agree and commit to
share resources and responsibilities in facilitating the required documentation and registration
procedures.

Sec. 13. Establishment of a Road Transportation Surety Fund Program. — The Road
Transportation Surety Fund Program shall be created under the Land Bank of the Philippines
(LBP) and the Development Bank of the Philippines (DBP) for the purpose of funding special
programs for the development of the road transportation sector in accordance with the rules

and regulations of the Banko Sentral ng Pilipinas. The Program shall provide financing start-

up and access to credit for road transportation sector members and cooperatives.
Sec. 14. Road Transportation Education. ~ The Technical Education and Skills
Development Authority (TESDA) is mandated to design and conduct short-course trainings
on road transportation education. The courses shall focus on the following:
(a) Basic driving skills;
(b) Transportation laws, traffic signs, rules and regulations;
© Safe driving practices;


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(d) Automotive troubleshooting to develop a competent and responsible driver;
and

(©)Design, assembly, manufacture, and operation of various types of road
transportation.

The Department of Education (DepEd) is hereby required to incorporate in the high
school curriculum a subject that aims to provide basic driving skills and education on traffic
Jaws, rules and regulations.

The LTO is hereby mandated to classify all drivers’ license, whether non-professional,
professional or commercial driver’s license, according to the types of vehicles to be driven
and require all applicants for professional driver’s license to undergo a commercial driver's
license training from TESDA-accredited training schools and pass the written and practical
examinations before the issuance of a license.

Sec. 15. Establishment of Free Common Transportation Terminal Facilities. — Every
Local Government Unit is mandated to establish free common transportation terminal
facilities in order to provide more convenient access to mass transportation system to the
commuting public.

Sec. 16. Allocation of Funds. ~ Ten percent (10%) of the funds generated from the
Motor Vehicle User's Charge shall be allocated to implement this Act to be provided in the
annual General Appropriations Act.

Sec. 17. Implementing Rules and Regulations. ~ Within ninety (90) days from the
effectivity of this Act, the DOTr in coordination with the DOJ, DepEd and TESDA, shall
formulate rules and regulations to effectively implement the provisions of this Act.

Sec. 18. Separability Clause. ~ If any portion or provision of this Act is declared
unconstitutional, the remainder of this Act or any provisions not affected thereby shall remain
in force and effect.

Sec. 19. Repealing Clause. — Any law, presidential decree or issuance, executive order,
letter of instruction, rule or regulation inconsistent with the provisions of this Act is hereby
repealed or modified accordingly.

Sec. 20. Effectivity. ~ This Act shall take effect fifteen (15) days following its complete
publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,