Republic of the Philippines
HOUSE OF REPRESENTATIVES

EIGHTEENTH CONGRESS
First Regular Session

3262
HOUSE BILL NO. _

Introduced by HONORABLE WES 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

EXPLANATORY NOTE

The policy of the State to “protect the interest of the consumers, promote the
general welfare and establish standards of conduct for business and industry” is
imbued in Article II of RA No. 7394, or the Consumer Act of the Philippines. In line
with this is the objective to protect consumers against deceptive, unfair and

unconscionable sales acts and practices.

However, operators of parking facilities in urban areas have abused the lack
of regularization in the commercial parking industry and have been engaging in
unfair and anti-consumer practices. For one, they have been charging exorbitant
fees. The consumers, who have no choice but to enter an adhesive contract, or a
take-it-or-leave it contract, with these operators are obliged to pay excessive fees
based from subjective standards,

These operators also impose a waiver of liability in case of loss of property or
damage to the customer's motor vehicle; undermining the trust given to them by
the consumers and enabling them to easily neglect such motor vehicles with
minimal, if not completely without, legal consequences.


This bill is the first step in regularizing the commercial parking industry - an
industry that is steadily gaining relevance due to the increase in number of motor
vehicles in the roads and further efforts to ease traffic congestion, among others. It
seeks to provide standard guidelines for a reasonable and fair price index for the
cost in availing the use of these parking facilities. In this wise, enterprising
operators are refrained from practices that unduly charge excessive fees. It also
seeks to prohibit operators of parking facilities from invoking waiver of liability to
safeguard the welfare of the consumers and afford them legal remedies in case of

loss or destruction of property.

This bill does not give operators of parking facilities the shorter end of the
stick. The idea is to impose more ethical standards and instill responsibility and
accountability to them, The goal is to strike a balance between affording consumers
the necessary protections and enabling operators to conduct a fair and profitable
business.

In view of the foregoing, approval of this bill is earnestly sought.

‘Representative, 1st District
Valenzuela City


Republic of the Philippines
HOUSE OF REPRESENTATIVES

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. fou zO2

——_— eee
Introduced by HONORABLE WES T. GATCHALIAN
eee

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 the 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

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;

©) 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;

) 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 (P!,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
establishments shall maintain and provide security in the parking spaces of
their establishments. 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 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. 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,