Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
17° CONGRESS
First Regular Session

ane
House Bill No. 322

Introduced by Representative Wes Gatchalian

EXPLANATORY NOTE

‘The basic law of supply and demand denotes that scarcity of a desired
commodity will cause its price to skyrocket. This principle is well-illustrated by the
high parking fees charged in urban areas. Metro Manila, a city with an estimated
seven (7) million private vehicles competing for parking in a cramped highly-
rbanized setting, has seen a proliferation of extractive parking establishments that
Charge exorbitant fees to desperate consumers who have no choice but to pay them.
On top of these, the residual effect is that car-owners are at times forced to park
outside the establishment causing additional friction in traffic and opening car-owners
to unsecured risk as to their property.

‘These unfair, anti-consumer policies have gone on for long enough. It is time
for Congress to employ its plenary power to regulate a problem that is simple, yet
vital to millions of Filipinos in the emerging middle-class. The key is to strike an
Xquitable middle-ground that will afford consumers the necessary protections without
cneessively hampering the ability of legitimate parking enterprises from conducting
fair and. profitable business. This legislation proposes to do exactly that by
establishing regulations for establishments charging parking fees, and providing
penalties for those caught in non-compliance.

cepresentative
1 district of Valeyfucla City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
17% CONGRESS

First Regular Session
3 ane

ses

House Bill No.

Introduced by Representative Wes Gatchalian

2GULATING THE IMPOSITION OF FEES FOR THE USE OF PARKING
SPACES AND FACILITIES IN SHOPPING MALLS, HOSPITALS, SCHOOLS
AND SIMILAR ESTABLISHMENTS, INCLUDING VACANT LOTS USED
EXCLUSIVELY FOR PARKING AND PRESCRIBING PENALTIES FOR
VIOLATION THEREOF

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

SECTION 1. Short Title. - This Act shall be known as the "Parking Fees Regulation
Act.”

. 2.Declaration of Policy. - It is the policy of the State to protect the interests and
promote the general welfare of consumers. Toward this end, the State shall
promulgate measures that will protect consumers who avail of parking facilities
offered by business operators from unreasonable parking rates and fees.

SEC. 3.Coverage of this Act. - This Act shall cover parking facilities for all kinds of
motor vehicles, including parking spaces in shopping malls, hospitals, schools or
other similar establishments, including vacant lots and buildings that are solely
devoted for use as parking.

SEC. 4.Provision of Parking Spaces; Regulation of Parking Fees. -Shopping mall
buildings, hospitals, schools and similar establishments are encouraged to provide free
parking space to their customers.

For purposes of this Act, a customer refers to a person who purchases a commodity or
service

Establishments which will impose parking fees for the use of their parking spaces
shall be subject to the following:

a) The standard parking fee shall be Forty pesos (P 40.00) per vehicle for a
maximum of 8 hours and an additional Ten pesos (P10.00) per succeeding hot
b) For overnight parking, a customer shall be charged a one-time fee of One
hundred pesos (P 100.00) per vehic!



c) A customer shall be given a grace period of thirty (30) minutes, wherein he
shall not be charged the standard parking fee if his motor vehicle shall have entered
and exited the premises within the grace period;

d) For shopping malls, restaurants, stores, and similar establishments where
‘customers go to purchase items or where the customers pay fees to enjoy the services,
facilities or amenities offered by the establishment, the parking fee shall be waived
once a customer presents a validated proof of purchase or payment of not less than
‘One thousand pesos (P1,000.00) in a single receipt or in an aggregate of separate
receipts: Provided, That the customer used the parking space for a maximum of three
(3) hours only: Provided, further, that customers who parked their vehicle for more
than three (3) hours shall be charged the standard rate provided under paragraph (a) of
this Section.

¢) Customers shall be issued a re
‘A parking receipt must contain the effe
‘motor vehicle the customer is paying for.

f) This provision is without prejudice to providing customers with a parking
space free of charge.

pt upon entering or exiting a parking facility.
ve date and time and the plate number of the

SEC. 5.Prohibition on Invoking Waiver of Liability. - Business establishments shall
maintain and provide security in the parking spaces of their establishments. When
parking fees are collected by business establishments from their customers for the use
of parking spaces, these establishments shall be responsible for the safety of its
patrons and shall be prohibited from invoking the waiver of liability in case of loss of
property or damage to the customer's motor vehicle.

The prohibition enunciated in the preceding paragraph shall likewise apply to
operators of buildings or vacant lots that are solely devoted for use as parking spaces.

The responsibilities of a depositary shall suppletorily apply for the purposes of this act
and shall not be waived even when no parking fee is charged to the customer.

SEC. 6.Penalties. - Any person or establishment who violates the provisions of this
Act shall be fined with not less than One hundred fifty thousand pesos (P 150,000.00)
per customer that is charged with an overpriced parking fee, or imprisonment of not
less than one (1) year but not more than three (3) years, or both, upon the discretion of
the court.

SEC. 7.Jmplementing Rules and Regulations. - The Secretary of Trade and Industry
shall promulgate the necessary rules and regulations for the effective implementation
of the provisions of this Act.

The Secretary of Trade and Industry is authorized to review every three (3) years the
applicability of Section 4 of this Act and to adjust the rate of parking fees, taking into
consideration the cost of maintenance of parking facilities, cost of provision of
security and the inflation rate of the preceding year.

SEC. 8.Separabitity Clause. - If any provision or part of this Act is held invalid or
unconstitutional, the remaining parts or provisions not affected shall remain in fall
force and effect.


SEC. 9.Repealing Clause. - All laws, executive orders, presidential decrees or
issuances, letter of instruction, administrative orders, rules, and regulations contrary t0
or inconsistent with the provisions of this Act are hereby repealed, amended, or
modified accordingly,

SEC. 10.£fectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved.