Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

SIXTEENTH CONGRESS ‘

Second Regular Session

5249

House Bill No.

Introduced by Hon. Delphine Gan Lee

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EXPLANATORY NOTE

‘Abandoned and derelict motor vehicles are nuisances. They obstruct the free flow of
traffic on the street on which they lay abandoned. ‘They prevent the free ingress and egress of
real property owners when they are left unattended in front of driveways and gates. They
prevent the free use of real property when they are dumped and abandoned on the same. They
are a source of lost income to automobile repair, towing and storage facilities when their

‘owners abscond.

This bill seeks to protect the public from the potential harm that may befall them as a

result of abandoned and derelict motor vehicles. Hence, the early passage of this bill is

eamestly requested.

HON. D) LEE
Representgfive, AGEI Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SIXTEENTH CONGRESS

Second Regular Session

House Bill No. 5249

Introduced by Hon, Delphine Gan Lee

ee

AN ACT
GOVERNING ABANDONED MOTOR VEHICLES AND
DERELICT MOTOR VEHICLES

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

ECTION 1. Short Title. - This Act shall be known as the “Abandoned Motor

Vehicle Act of 2014.”

SECTION 2. Declaration of Policy. ~ It is the policy of the State to promote the
general welfare of the people. Pursuant to this policy, this Act seeks to create a law governing

abandoned motor vehicles and derelict motor vehicles,

SECTION 3. Definition of Terms. — For purposes of this Act, the term:

(A) “Abandoned motor vehicle” means a motor vehicle or trailer and its contents:

(1) Which has been left by the owner or some person acting for the owner with
an automobile dealer, or any automobile repair facility for repair or for
some other reason and has not been called for by such owner or other
person within a period of thirty (30) days after the time agreed upon; or

within 30 days after such vehicle is turned over to such dealer, or


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automobile repair facility when no time is agreed upon; or within thirty
(30) days after the completion of necessary repairs;

(2) Has been left by the owner or some person acting for the owner with a
towing and storage facility for a period of not less than thirty (30) days
without anyone having paid all reasonable current charges for such towing
and storage;

(3) Which has been lawfully towed to an automotive storage facility at the
request of a law enforcement officer and left there for a period of not less
than 30 days without anyone having paid all reasonable current charges for
such towing and storage;

(4) Which has been lawfully towed from private property to an automotive
storage facility at the request of a property owner or person acting for the
property owner and left there for a period of not less than thirty (30) days
without anyone having paid all reasonable current charges for such towing
and storage;

(5) Which was being stored by agreement for an insurance company providing
insurance to cover damages to the vehicle and was left for a period of not
less than thirty (30) days past the agreed upon date.

(B) “Derelict motor vehicle” means any motor vehicle which has been left unattended
on private property for not less than two (2) days or on public property for not less
than three (3) days without the owner or driver making any attempt to recover
such vehicle or to leave a conspicuously placed note that such owner or driver
intends to return for such vehicle. It shall also include any motor vehicle which, if
a conspicuous note was left, has been left unattended for not less than five (5)
days and if because of damage, vandalism, theft, or fire the vehicle is damaged to

the extent that its restoration to an operable condition would require the


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replacement of one or more major component parts or involves any structural
damage that would affect the safety of the vehicle.

The term shall not include a vehicle which does not bear a manufacturer's
vehicle identification number plate or a vehicle identification number plate
assigned by the Land Transportation Office.

(C) “Motor vehicle” or “vehicle” means a motor vehicle or trailer and its contents.

(D) “Owner” or “owners” means the registered owner, the owner as recorded on the
title, lessor, lessee, security interest holders, and all lienholders as shown on the
records of the Land Transportation Office;

(E) “Unattended vehicle check” shall consist of such actions as are reasonably
necessary to determine that the unattended vehicle does not contain an injured or
incapacitated person and to determine that the unattended vehicle does not pose a

threat to public health or safety.

SI

‘TION 4, Duty of Peace Officer to Perform an Unattended Vehicle Check. ~ It
shall be the duty of any peace officer who discovers a motor vehicle which has been left
unattended on a public street, road, or highway or other public property to immediately
perform an unattended vehicle check on such motor vehicle, unless there is displayed on such
motor vehicle an unattended yehicle check card indicating that another peace officer has

already performed such an unattended vehicle check.

SECTION 5. Removal of an Abandoned Motor Vehicle by a Peace or Law
Enforcement Officer. ~ Any peace officer who finds a motor vehicle which has been left
unattended on a public street, road, or highway or other public property for a period of at
least five (5) days shall be authorized to cause such motor vehicle to be removed to a garage
or other place of safety, if such peace officer reasonably believes that the person who left

such motor vehicle unattended does not intend to return and remove such motor vehicle.


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‘Any law enforcement officer who finds a motor vehicle which has been left
unattended on the state highway system shall be authorized to cause such motor vehicle to be
removed immediately to a garage or other place of safety when such motor vehicle poses a
threat to public health or safety or to mitigate congestion. Any peace officer who finds a
motor vehicle which has been left unattended on a public street, road, or highway or other
public property, other than the state highway system, shall be authorized immediately to
cause such motor vehicle to be removed immediately to a garage or other place of safety

when such motor vehicle poses a threat to public health or safety or to mitigate congestion.

SECTION 6. Possessory Lien. — Any person who or facility that legally tows,
transports, or stores any motor vehicle shall have a possessory lien on the vehicle. The lien
shall remain in effect while the motor vehicle is in the possession of the person or facility and
is limited to reasonable towing and storage fees, plus notification, advertisement, or disposal
costs where applicable, Such lien shall include vehicle contents with the following
exceptions: prescription drugs or eyewear, child passenger restraining system, house keys,
and personal documentation such as birth or death records. This lien attaches when the person
or facility acts:

(A) Under a contract with the owner or someone representing the owner;

(B) At the direction of a law enforcement officer; or

(©) At the direction of an owner or lessor, or a person authorized by the owner or

lessor, of private property on which such vehicle is wrongfully located, and the

vehicle was removed in accordance with Section 5.

SECTION 7. Duty of Person or Facility which Stores the Abandoned Motor
Vehicle. — Any person or facility who stores a motor vehicle that was removed from public or
private property at the request of someone other than the vehicle owner or some person acting

for the owner shall notify in writing a local law enforcement agency of the location of the


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vehicle, the manufacturer’s vehicle identification number, license number, model, year, and
make of the vehicle within three business days of the removal of such vehicle and shall seek
from the local law enforcement agency the identity and address of all known owners of such

vehicle, and any information indi

ing that such vehicle is a stolen motor vehicle. The local
law enforcement agency shall furnish such information to the person or facility storing such

vehicle within three business days after receipt of such request.

When any motor vehicle is removed under conditions set forth in Section 5 of this
Act, the person or facility storing such motor vehicle shall, within seven (7) business days of
the day such motor vehicle was removed or one business day after the information is
furnished to the storer pursuant to Paragraph 1 of this Section, whichever is later, notify all
owners, if known, by written acknowledgment signed thereby or by certified or registered
mail or statutory overnight delivery, of the location of such motor vehicle, the fees connected
with removal and storage of such motor vehicle, and the fact that such motor vehicle will be
deemed abandoned under this chapter unless the owner, security interest holder, or lienholder
redeems such motor vehicle within 30 days of the day such vehicle was removed. Further,
such notification shall not be required if the vehicle is being repaired by a repair facility or
being stored at the request of the vehicle owner or someone acting for the owner or an
insurance company that is providing insurance to cover damages to the vehicle. No such
notice or written demand shall be required if, after a good faith effort, the identity of the

owner cannot be ascertained.

If none of the owners redeems such motor vehicle as described in Paragraph 2 of this
Section, of if a vehicle being repaired by a repair facility or being stored at the request of the
vehicle owner or someone acting for the owner or by an insurance company that is providing
insurance to cover damages to the vehicle becomes abandoned, the person or facility storing

such motor vehicle shall, within seven business days of the day such vehicle became an


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abandoned motor vehicle, give notice in writing, by sworn statement, on the form prescribed
by the Chairman of the Land Transportation Office, stating the manufacturer's vehicle
identification number, the license number, the fact that such vehicle is an abandoned motor
vehicle, the model, year, and make of the vehicle, the date the vehicle became an abandoned
motor vehicle, the date the vehicle was removed, and the present location of such vehicle and
requesting the name and address of all owners of such vehicle. If the form submitted is
rejected because of inaccurate or missing information, the person or facility storing the
vehicle shall resubmit, within seven business days of the date of the rejection, a corrected

notice form.

If the identity of the owners of such motor vehicle cannot be ascertained, the person
or facility storing such vehicle shall place an advertisement in a newspaper of general
circulation in the county where such vehicle was obtained or, if there is no newspaper in such
county, shall post such advertisement at the county courthouse in such place where other
public notices are posted. Such advertisement shall run in the newspaper once a week for two
consecutive weeks or shall remain posted at the courthouse for two consecutive weeks. The
advertisement shall contain a complete description of the motor vehicle, its license and
manufacturer's vehicle identification numbers, the location from where such vehicle was
initially removed, the present location of such vehicle, and the fact that such vehicle is

deemed abandoned and shall be disposed of if not redeemed.

Any person or facility storing a vehicle under the provisions of this Section shall

notify the Land Transportation Office if the vehicle is recovered, is claimed by the owner, is
determined to be stolen, or for any reason is no longer an abandoned motor vehicle. Such

notice shall be provided within seven (7) business days of such event.


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SECTION 8. Duty of Law Enforcement Officer if Abandoned Motor Vehicle is
found to be Stolen. — \f any motor vehicle removed under conditions set forth in Section 7 of
this Act is determined to be a stolen motor vehicle, the local law enforcement officer or
agency shall immediately notify the storage facility of such determination, and provide to
such storage facility the names and addresses of all owners, if ascertainable, and shall further
notify the Georgia Crime Information Center of the location of such motor vehicle within

three (3) days after receiving notice that such motor vehicle is a stolen vehicle.

TION 9. Procedure for Foreclosure of Liens, ~ All liens acquired under shall be
foreclosed as follows:

(A) Any proceeding to foreclose a lien on an abandoned motor vehicle must be
instituted within one year from the time the lien is recorded or is asserted by
retention;

(B) The person desiring to foreclose a lien on an abandoned motor vehicle shall, by
certified or registered mail or statutory overnight delivery, make a demand upon
the owners for the payment of the reasonable fees for removal and storage plus the
costs of any notification or advertisement. Such written demand shall include an
itemized statement of all charges and may be made concurrent with the notice
required by Section 7, Paragraph 2 of this Act. Such demand shall be made on a
form prescribed by rule or regulation of the Department of Transportation and
Communication and shall notify the owner of his or her right to a hearing to
determine the validity of the lien. The demand shall further state that failure to
return the written demand to the lien claimant, file with a court of competent
jurisdiction a petition for a judicial hearing, and provide the lien claimant with a
copy of such petition, all within ten (10) days of delivery of the lien claimant’s

written demand, shall effect a waiver of the owner’s right to such a hearing prior


1 to sale. The form shall also provide the suspected owner with the option of

2 disclaiming any ownership of the vehicle, and his or her affidavit to that effect
3 shall control over anything contrary in the records of the Land Transportation
4 Office. No such written demand shall be required if the identity of the owner
5 cannot be ascertained and the notice requirements of Section 7, Paragraph 4 have
6 been complied with.
7 (C) If, within ten days of delivery to the appropriate address of the written demand
8 required by Paragraph (B) of this Section, the owner of the abandoned motor
9 vehicle fails to pay or file with the court a petition for a judicial hearing with a
10 copy to the lien claimant in accordance with the notice provided pursuant to
ul Paragraph (B), or if the owner of the abandoned motor vehicle cannot be
12 ascertained, the person or facility storing the abandoned motor vehicle may
13 foreclose such lien, The person or facility asserting such lien may move to
14 foreclose by making an affidavit to a court of competent jurisdiction, on a form
15 prescribed by rule or regulation of the Land ‘Transportation Office, showing all
16 facts necessary to constitute such lien and the amount claimed to be due. The
17 person or facility foreclosing shall verify the statement by oath or affirmation and
18 shall affix his or her signature thereto.
19 (D) If no timely petition for a hearing has been filed with a court of competent
20 jurisdiction, then, upon such affidavits being filed by the lien claimant pursuant to
21 Paragraph (C) of this Section, the lien will conclusively be deemed a valid one
22 and foreclosure thereof allowed;
23 (E) Ifa petition for a hearing is filed with a court of competent jurisdiction within ten
24 days after delivery of the lien claimant’s demand, a copy of which demand shall
25 be attached to the petition, the court shall set such a hearing within ten (10) days
26 of filing of the petition;


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Upon the filing of such petition by an owner, neither the lien claimant nor the
court may sell the motor vehicle, although possession of the motor vehicle may be
retained by the lien claimant or obtained by the court in accordance with the order

of the court which sets the date for the hearing;

(G) If, after a full hearing, the court finds that a valid debt exists, then the court shall

authorize foreclosure upon and sale of the motor vehicle subject to the lien to

satisfy the debt if such debt is not otherwise immediately paid;

(H) If the court finds the actions of the person or facility asserting the lien in retaining

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possession of the motor vehicle were not taken in good faith, then the court, in its
discretion, may award damages to the owner, any party which has been deprived
of the rightful use of the vehicle, or the lessee due to the deprivation of the use of
the motor vehicle;

If an affidavit meeting the requirements of Paragraph (C) of this Code section is
filed and no petition for a hearing is timely filed, or if, after a full hearing, the
court determines that a valid debt exists, the court shall issue an order authorizing
the sale of such motor vehicle. However, the holder of a security interest in or a
lien on the vehicle, other than the holder of a lien created by Section 6 of this Act,
shall have the right, in the order of priority of such security interest or lien, to pay
the debt and court costs. If the holder of a security interest or lien does so pay the
debt and court costs, he or she shall have the right to possession of the vehicle,
and his or her security interest in or lien on such vehicle shall be increased by the
amount so paid. A court order shall be issued to this effect, and in this instance
there shall not be a sale of the vehicle;

‘The purchaser at a sale as authorized in this article shall receive a certified copy of
the court order authorizing such sale. Any such purchaser may obtain a certificate

of title to such motor vehicle by filing the required application, paying the


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required fees, and filing a certified copy of the order of the court with the Land
Transportation Office. The Land Transportation Office shall then issue a

certificate of title, which shall be free and clear of all liens and encumbrances.

SECTION 10. Procedure for Derelict Motor Vehicles. — Derelict motor Vehicles

shall be dealt with as follows:

(A)If a motor vehicle has been left unattended on private property for not less
than (2) two days or on public property for not less than three (3) days without
the owner or driver making any attempt to recover such vehicle or to leave a
conspicuously placed note that such owner or driver intends to return for such
vehicle; or, if a conspicuous note was left, if the motor vehicle has been left
unattended for not less than five (5) days and if because of damage,
vandalism, theft, or fire the vehicle is damaged to the extent that its restoration
to an operable condition would require the replacement of one or more major
component parts or involves any structural damage that would affect the safety
of the vehicle; or if there is evidence that the vehicle was inoperable due to
major mechanical breakdown at the time it was left on the property; or if the
vehicle is seven or more years old; or if the vehicle is not currently tagged or
is not verifiable by the state as to who is the current owner or lienholder of the
vehicle; or if the vehicle has been abandoned to a wrecker service by an
insurance company and the owner following the insurance company’s making
a total loss payment, then any person removing such vehicle shall within three
(3) business days of removing such vehicle obtain the identity of and address
of the last known registered owner of the vehicle, the owner of the vehicle as

recorded on the certificate of title of such vehicle, and any securit

holder or lienholder on such vehicle from the local law enforcement agency of

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the jurisdiction in which the vehicle was located.

(B) If the law enforcement agency shows no information on the vehicle, then a
request for such information shall be sent to the Land Transportation Office.
Within three (3) business days after obtaining such information, the person
removing such vehicle shall, by certified mail or statutory overnight delivery,
return receipt requested, notify the registered owner, title owner, and security
interest holder or lienholder of the vehicle that such vehicle will be declared a
derelict vehicle and the title to such vehicle will be canceled by the Land
Transportation Office if such person or persons fail to respond within ten days
of receipt of such notice.

(C)Upon determination that a vehicle is a derelict motor vehicle as provided in
Paragraph (A) of this Section, it may be disposed of by sale to a person who

scraps, dismantles, or demolishes motor vehicles, provided that such vehicle

may be sold for scrap or parts only and shall in no event be rebuilt or sold to
the general public. Any person disposing of a derelict motor vehicle shall,
prior to disposing of such vehicle, photograph such vehicle for a period of

three years after its disposition. Such person shall also notify the Department

of Revenue of the disposition of such vehicle in such manner as may be
prescribed by the Chairman of the Land Transportation Office. It shall cancel

the certificate of title for such vehicle and shall not issue a rebuilt or salvage

title for such vehicle.

SECTION 11. Prohibited Act and Penalties. ~ The following acts are unlawful and

shall be penalized as follows:

(A) Any person or facility who fails to provide notice and information required by

Section 7 of this Act shall be fined an amount of not more than Ten Thousand

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Pesos (P10,000.00) at the discretion of the court, taking into consideration all

attending circumstances.

(B) A fine of not more that Five Thousand Pesos (P5,000.00) shall be imposed on
any person or facility who knowingly provides false or misleading information

when providing any notice or information as required by Section 7 of this Act.

In addition, to the penalties provided in Paragraphs (A) and (B), such

person or facility shall not be eligible to contract with or serve on a rotation

list providing wrecker services for the State or any political subdivision
thereof, and shall not be licensed by any municipal authority to provide
removal of improperly parked cars for six months and until legal disposition of
all abandoned vehicles in that person's or facility's possession.

(C) Any person who abandons a derelict motor vehicle on public or private
property shall be fined an amount of not more than ‘Ten Thousand Pesos
(6,000.00) at the discretion of the court, taking into consideration all
attending circumstances and shall pay all costs of having such derelict motor
vehicle removed, stored, and sold as provided for in Section 10.

(D) Any person removing a derelict motor vehicle who fails to comply with the
requirements of this Act or who knowingly provides false or misleading
information when providing any notice or information required by Section 10
shall be fined an amount of not more than Five Thousand Pesos (P5,000.00) at
the discretion of the court, taking into consideration all attending

circumstances

SECTION 12. Liability for Negligence, — Any peace officer who, under Act, causes

any motor vehicle to be removed to an automotive storage facility shall be liable for gross

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negligence only.

Any person or towing service that is instructed by a law enforcement officer or an
official of the Department of Transportation to remove vehicles and cargo that pose a threat

to public health or safety or to mitigate congestion shall be liable for gross negligence only.

Neither the State nor any state agency nor the person removing, storing, and
processing the vehicle unless recklessly or grossly negligent shall be liable to the owner of a

vehicle declared to be an abandoned motor vehicle or a derelict motor vehicle.

SECTION 13, Separability Clause. ~ If any provision or part hereof, is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain

valid and subsisting.

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TION 14. Repealing Clause. — Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation contrary to or
inconsistent with the provisions of this act is hereby repealed, modified or amended

accordingly.

SECTION 15. Effectivity Clause. — This Act shall take effect fifteen (15) days after

its publication in at least two (2) newspapers of general circulation.

Approved,