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

SIXTEENTH CONGRESS
First Regular Session

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HOUSE BILL NO.

Introduced by: REP. RAUL V. DEL MAR

EXPLANATORY NOTE

There is always value in order, value in a well-ordered scheme of performing
or implementing activities or functions impressed with public interest. This is most
true in the area of traffic operations, management and supervision in urban
communities, an activity that literally deals in a daily basis with the flow and
movement of vehicles, people and goods. A well-ordered traffic — and transport -
system , a well-regulated community of road users results in added value and
benefits that may be difficult to quantify with precision but easy to see and
appreciate. On the other hand, the chaos, make people's lives miserable.

Indeed, traffic matters and problems in highly urbanized localities affect not
only the convenience, mobility and safety of the riding public but also their production
and productivity. Existing statistics and studies support this and government efforts in
this specific area of concern are in the direction of having traffic control and
management effectively ceded to a dedicated, more- focused and more responsive
body to achieve better results.

In this light, the attached bill, firmed up in the 18 Metro Cebu Traffic Summit
organized by the Cebu Chamber of Commerce and Industry with the cooperation of
the Cebu City government held last October 20-27 2001 — attended by national
government agencies concemed, the provincial government of Cebu, the local
government units of Cebu City, Mandaue City, Lapu-Lapu City, Talisay City and the
municipalities of Conosolacion, Cordova and Minglanilla and the rest of the Metro
Cebu and the various associations of transport groups and NGOs — seeks to create
a Metro Cebu Traffic Authority directly address more efficient and effectively the
traffic problems of Metro Cebu that appear to be growing beyond the remedial efforts
of present traffic policy-makers and enforcers. For this purpose, Metro Cebu
embraces the cities of Cebu , Mandaue, Lapu-Lapu, Danao, Talisay, Naga and
Carcar and the municipalities of Consolacion, Liloan, Compostela, Cordova,
Minglanilla and San Fernando and such other cities and municipalities in the
province of Cebu as may later be included by the Metro Cebu Traffic Authority
Council

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The proposed Authority — it likewise seeks to take over the traffic and allied
functions of the Land Transportation Office (LTO) and the Land Transportation
Franchising and Regulatory Board (LTFRB) in Metro Cebu to strengthen its primary
responsibility — is one bold step in having a better system of traffic control and
management. But the achievement of the objectives is within reach because the
governing body is composed of the chief executives of the local government units
that make up Metro Cebu. Needless to say, if successful in Cebu, the same may be
easily replicated in other highly urban cities in the country.

In view hereof, approval of the bill is earnestly requested

ee V. DEL MAR



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

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. Bi2

Introduced by: REP. RAUL V. DEL MAR

AN ACT
CREATING THE METRO CEBU TRAFFIC AUTHORITY, DEFINING ITS POWERS
AND FUNCTIONS, PROVIDING FUNDS THEREFOR AND FOR OTHER
PURPOSES

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

SECTION 1. Declaration of Policy. ~ It is policy of the State to put in place
an orderly system of doing things to improve government functions and operations,
making them more responsive to pressing problems for the benefit of society. The
efficient and effective planning, management, supervision and coordination of the
traffic system in highly urbanized localities is a basic imperative of a well-organized
society, affecting as it does not only the convenience and safety but also the
production and productivity of the greater majority of the people in the community.

SEC. 2. Creation of the Metro Cebu Traffic Authority. - To implement the
State policy, there is hereby created a body cotporate to be known as the “Metro
Cebu Traffic Authority,” hereinafter referred to as the “Authority”, primarily tasked and
responsible for the planning management, control and supervision of the traffic
affairs of Metro Cebu. For this purpose, Metro Cebu shall embrace the cities of
Cebu, Mandaue, Lapu-Lapu, Danao, Talisay, Naga and Carcar, and the
municipalities of Consolacion, Liloan, Compostela, Cordova, Minglanilla and San
Fernando and such cities and municipalities in the province of Cebu as may later be


included by the Metro Cebu Traffic Authority Council.

SEC. 3. Primary Responsibility. - The primary responsibility of the Authority
shall cover transport and traffic services that have metro-wide impact and transcend
local political boundaries. These services shall include the following

(a) Planning, monitoring and coordination as well as regulation and
supervision of the traffic condition and operations of Metro Cebu;

(b) Formulation, coordination and monitoring of policies, standards, programs
and projects to rationalize the existing transport operations, infrastructure
requirements, the use of thoroughfares, and promotions of date and convenient
movement of persons and goods;

(c) Provision for the mass transport system and the institution of a system to
regulate road users;

(d) Administration, implementation and enforcement of all laws, rules and
regulations involving traffic operations, traffic engineering services, traffic education
programs, including the functions of the Land Transportation Office (LTO) and of the
Land Transportation Office Franchising and Regulatory Board (LTFRB) within Metro
Cebu, notwithstanding any law to the contrary;

(e) Institution of a single ticketing system in Metro Cebu.

SEC. 4, Governing Body. - The Authority shall be governed and its activities
directed, managed and controlled by a Council composed of the mayors of the cities
and municipalities enumerated under Section 2 hereof and three (3) representatives
from the private sector who shall be appointed by the said Mayors of the cities and
municipalities.

The Council shall be headed by a Chairman, to be elected by the Council from
among the Members, who shall continue to hold office upon the pleasure and
discretion of the Council.

The Chairman and members of the Council shall promulgate the necessary
rules and regulations to govern the proceedings of the Council. They shall be entitled
to allowances and per diems for every council meeting actually attended in
accordance with existing policies, rules and regulations.

SEC. 5. Functions and Powers of the Authority. - The Authority shall



exercise or perform the following powers and functions :

(a) Formulate, coordinate and regulate the implementation of medium and
long-term plans and programs for the delivery of metro-wide services, land use and
physical development within Metro Cebu respecting the affairs of traffic, consistent
with national development objectives and priorities;

(b) Prepare, coordinate and regulate the implementation of medium-term
investment programs for metro-wide services under its jurisdiction which shall
indicate sources and uses of funds for priority programs and projects, and which
shall include the packaging of projects and presentation to funding institutions;

() Undertake and manage on its own metro-wide programs and projects for
the delivery of specific services under its jurisdiction, subject to the approval of the
Council. For this purpose, the Authority may create appropriate project management
offices;

(4) Coordinate and monitor the implementation of such plans, programs and
projects in Metro Cebu, identify bottlenecks and adopt solutions to problems of
implementation;

(e) Formulate and set the policies concerning traffic in Metro Cebu, and
coordinate and regulate the implementation of all programs and projects concerning
traffic management, specifically pertaining to enforcement, planning, engineering
and education. Upon request, the Authority shall be extended assistance and
cooperation, including but not limited to, assignment of personnel, by all other
government agencies and offices concerned;

(f) Install and administer a single ticketing system, fix, impose and collect fines
and penalties for all kinds of violations of traffic laws, rules and regulations, whether
moving or non-moving in nature, and confiscate and suspend or revoke licenses of
erring drivers in the enforcement of such traffic laws and regulations, the provisions
of Republic Act No. 4136 and Presidential Decree No. 1605 to the contrary
notwithstanding. For this purpose, the Authority shall enforce all traffic laws and
regulations in Metro Cebu, through its traffic operation center, and may deputize
members of the Philippine National Police (PNP), traffic enforces of local government
units, duly licensed security guards, or members of non-governmental organizations
to whom may be delegated certain traffic functions and powers, subject to such
conditions and requirement as the Authority may impose:

(g) Levy fines as may be warranted in the exercise of its functions and impose


fees and charges for various services rendered, the proceeds of which shall
exclusively accrue to and used for the operations of the Authority ;

(h) Enter into, make perform and carry out contracts or agreements of every
kind and for any lawful purpose pertaining to the above-mentioned powers and
objectives of the Authority;

(i) Perform other related functions required to achieve the objectives of the
Authority, including the undertaking of delivery of services to the local government
units respecting traffic, when deemed necessary subject to prior coordination with
and consent of the local government units concerned

SEC 6. Functions of the Council of Mayors. The Council, in addition to its
powers under the preceding sections, shall perform the following functions

(a) It shall approve metro-wide plans, programs and projects and issue rules
and regulations and resolutions deemed necessary by the Authority to carry out the
purpose of this Act;

(b) It may increase the rate of allowances and per diems of the members of
the Council to be effective during the term of the succeeding Council. It shall fix the
compensation of the officers and personnel of the Authority, and approve the annual
budget thereof for submission to the Department of Budget and Management (DBM);

(c) It shall promulgate rules and regulations and set policies and standards for
metro-wide application governing the affairs of traffic within the Metro Cebu,
including the imposition and collection of service and regulatory fees, and fines and
penalties.

SEC. 7. Functions of the Chairman of the Council of Mayors. The
Chairman of the Metro Cebu Traffic Authority Council shal

(a) Appoint, subject to civil services laws, rules and regulations, all
subordinate officers and employees of the Authority, who shall enjoy security of
tenure and may be removed only for cause in accordance with law.

(b) Engage the services of experts or consultants either on full time or part-
time basis, as may be required and necessary for the performance of his functions
and duties.

(c) Execute or cause the execution of the rules, regulations, policies and
measures approved by the Council and be responsible for the efficient and effective



day-to day management of all the operations of the Authority;

(4) Submit for consideration of the Council such other policies and measures
as he may deem necessary to carry out the purpose and provisions of this Act;

(e) Subject to the guidelines and policies set by the Council, prepare the
staffing pattern and fix the number of subordinate officials and employees of the
Authority and exercise the power to discipline subordinate officials and employees in
accordance with law;

() Prepare an annual report on the accomplishments of the Authority at the
close of each calendar year for submission to the Council; and

(g) Perform such other duties as may be assigned to him by the Council.

SEC. 8. Organization/Support Staff/Services. - The Chairman shall be
assisted by an Executive Officer, an Assistant Executive Officer for Finance and
Administration, an Assistant Executive Officer for Planning and Engineering, an
Assistant Executive Officer for Operations, and an Executive Officer for Education,
all of whom shall be appointed by the Chairman, subject to the approval of the
Council, subject to civil service laws, rules and regulations. They shall enjoy security
of tenure and may be removed only for cause in accordance with law.

The Executive Director shall have the following functions:

(a) Assists the Chairman in the administration of the Authority and supervision
of subordinate personnel;

(b) Assists the Chairman in the supervision of the operation of the various
operating centers and units of the Authority;

(c) Assists the Chairman in the review of plans and programs for the Authority
in the preparation of the annual report of activities and accomplishments of the
Authority ; and

(d) Perform such other duties and functions as may be lawfully delegated or
assigned by the Chairman from time to time.

SEC. 9. Institutional Linkages. — The Authority shall, in carrying out its
functions, consult, coordinate and work closely with the Local Government Units
concerned, other national government agencies, and accredited people's
organizations (PO's) non-governmental organizations (NGO's), and the private
sector operating in Metro Cebu. The Council Chairman or his authorized



representative from among the members of the Council, shall be an ex officio
member of the board of government corporations and committees of the
departments and offices of government whose activities are relevant to the
objectives and responsibilities of the Authority which shall include, but not be limited
to, the Department of Transportation and Communications (DOTC) and the
Department of Public Works and Highways (DPWH) and the Department of Interior
and Local Government (DILG)

The Authority shall have a master plan that shall serve as the framework for
the local development plans of the component LGU's.

The implementation of the Authority's plans, programs, and projects shall be
made in coordination with the LGU's, the concerned national government agencies,
the PO's, NGO's and the private sector. For this purpose, the Authority may enter
into contracts, memoranda of agreement and other cooperative arrangements with
these bodies for the effective delivery of the traffic concerns within the Metro Cebu
area

The Authority may interface with the foreign assistance agencies for purposes
of obtaining financing support, grants and donations in support of its programs and
projects.

SEC. 10. Rules of Interpretation. ~ In case of conflict between the provision
of this Act and national laws and local laws and ordinances governing the local
government units, the same shall prevail on matters affecting the direct
implementation and operations of the powers of the Authority under the Act

SEC. 11. Sources of Funds and the Operating Budget. ~ To carry out the
purposes of this Act:

(a) The amount of ONE HUNDRED MILLION PESOS (P100,000,000.00) is
hereby authorized to be appropriated for the initial operation of the Authority.
Thereafter, the annual expenditures including capital outlays of the Authority shall be
provided in the General Appropriations Act.

(b) Five percent (5%) of the total annual gross revenue of the preceding year,
net of the internal revenue allotment, of each municipality mentioned in Section 2
hereof and two percent (2%) of the total annual gross of the preceding year, net of
the internal revenue allotment, of each city mentioned Section 2 hereof, shall accrue


and become payable monthly to the Authority by each city or municipality. In case of
failure to remit the said fixed contribution , the DBM shall cause the disbursement of
the same to the Authority chargeable against the IRA allotment of the city or
municipality concerned, the provisions of Section 286 of Republic Act No. 7160 to
the contrary notwithstanding.

SEC. 12. Implementing Rules and Regulations. ~ The Authority shall, within
sixty (60) days upon approval hereof, formulate the rules and regulations to carry out
the provisions of this Act. in this regard, priority shall be given the transfer of the
functions, duties and responsibilities of LTO and LTFRB to the Authority.

SEC. 13. Repealing Clause. — All other laws, decrees, executive orders, rules
and regulations, or part thereof inconsistent with or contrary to the provision of this
Act are hereby repealed or modified accordingly.

SEC. 14. Separability Clause. — if any part or provision of this Act is held
unconstitutional or invalid, other parts or provisions thereof which are not affected

shall continue to remain in full force and effect.

SEC. 15. Effectivity. - This Act shall take effect fifteen (15) days following its
publication in at least two (2) newspapers of general circulation.

Approved,