Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Second Regular Session

House Bill No, 5099

Introduced by Honorable Sherwin T. 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-urbanized setting, has seen a proliferation of extractive parking
establishments that charge exorbitant fees to desperate consumers who have
no choice but to pay them.

‘These unfair, anti-consumer policies have gone on for long enough. It is
time for the 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 equitable middle-ground that will afford consumers the necessary
protections without excessively 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.

Support for the passage and approval of this legi .is earnestly
sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

House Bill No, 5093

Introduced by Honorable Sherwin T. Gatchalian

AN ACT
REGULATING 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.”

SEC. 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 parking spaces for their customers free of charge.

SAT


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 hour; .

b) For overnight parking, a customer shall be charged a one-time fee of
One hundred pesos (P 100.00) per vehicle;

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): 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.

e) Customers shall be issued a receipt upon entering or exiting a parking
facility. A parking receipt must contain the effective date and time and
the plate number of the motor vehicle the customer is paying for.

SEC, 5, Prohibition on Invoking Waiver of Liability. — Business
ablishments 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.

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. Implementing Rules and Regulations. - The Sccretary 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
ye

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

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hereby repealed, amended, or modified accordingly.

SEC, 10, Effectivity Clause. - This Act shall take effect fifteen (15) days

after its publication in the Official Gazette or in a newspaper of general
circulation,

Approved.