| HOUSE OF REPRESENTATIVES

RECEIVED
SEVENTEENTH CONGRESS OF THE ) pate
REPUBLIC OF THE PHILIPPINES ) i
First Regular Session ) TINE

BY:

HOUSE OF REPRESENTATIVES,
H.No._ 2603

REGISTRATION UNIT
BILLS AND INDEX SERVICE

Introduced by Representative Vilma Santos-Recto
6th District of Batangas

AN ACT
CREATING THE SPECIAL MASS TRANSITSYSTEM SUPPORT FUND AMENDING
FOR THE PURPOSE SECTIONS 7 AND 8 OF REPUBLIC ACT NO. 8794,
OTHERWISE KNOWN AS THE “MOTOR VEHICLE USER’S CHARGE ACT OF
2000”
Explanatory Note

There are 90.88 Million (90%) of our 100.98 Million' population who constitute the
riding public. On the other hand, the total number of motor vehicles registered with the Land
‘Transportation Office (LTO) in 2014 reached 8.08 Million, of which 912,584 (11%)" are public
utility vehicles.

Our nation’s transport system relies heavily on the road network which handles
approximately 90% of passenger movement and 50% of freight movement,’ serving priority
production areas and population centers.

Since the passage of R.A. No. 8794, also known as the “Motor Vehicle User’s Charge
(MVUC) Act” in June 2000, the road user’s tax has been imposed on owners of all types of
vehicles, whether for hire, for private or government use. Based on the 2016 Budget of
Expenditures and Sources of Financing, the balance from the collections from Motor Vehicle
User’s Charge (MVUC) as of December 31, 2014 amounts to P11.44 Billion while the estimated
revenues for 2016 amounts to P12.79 Billion.“

The increase in the number of motor vehicles has corollarily increased the MVUC
collections. However, it has also made the traffic situation in our country worse.John Forbes,
senior advisor of the American Chamber of Commerce of the Philippines, stated in an interview
that Metro Manila may become “uninhabitable” within four years if roads and other
infrastructure are not upgraded immediately as the volume of vehicles sold is expected to surge
to 500,000 by 2020.°

Metro Manila traffic cost us almost P900 billion in 2015, quantified by wasted time, fuel
and lost human produetivity, and was logged at 10 percent of the country’s gross domestic
product.

‘Philippine Statistics Authority ~ National Capital Region, “NCR in Figures”, hitp’/www.nso-ner-ph (accessed 6
June 2016)

2Land Transportation Office. Annual Report 2014, 03 February 2015.

* National Economic and Development Authority, NEDA MTPDP 2004-2010: Chapter 6: Infrastructure (2004)"
“ Department of Budget and Management, “Budget of Expenditures and Sources of Financing (Table B.17): Fiscal
Year 2016”

* Richmond Mercurio. “Traffic can make Metro Manila uninhabitable in 4 years”,
http:/www.philstar,com/headlines/2016/0 1/04/15390S0/traffic-can-make-metro-manila-uninhabitabl

“Rey Gamboa. “Make Dream Plan 2030 a Reali
dream-=plan-2030-reality (accessed 14 June 2016),

tp://www philstar.com/business/2016/02/09/1551065/n



This measure seeks to amend the MVUC Act by realigning funds from the MVUC to the
construction, improvement and rehabilitation of our mass transit system. While total reduction of
congestion would be impossible, strong efforts to improve the country’s much delayed mass
transport systems would surely translate into benefits such as increase in productivity, cleaner
environment and a healthier population.

The approval of this bill will address the need to provide efficient and effective mass
transit system in our country. Expansion and improvement of mass transit has been proven to be
cost-effective in developed countries since it addresses concerns on traffic and parking
congestion, travel time, costs of roadway and parking facility expansion, safety and traffic
accidents, road wear, health and environment, long-term vehicle costs to-eonsumers, excessive
energy consumption and limited mobility for non-drivers. we

With the foregoing considered, the approval of this bil

VILMA SANTOS-RECTO



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SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES
H.No. 2603

Introduced by Representative Vilma Santos-Recto
6th District of Batangas

AN ACT
CREATINGTHESPECIAL MASS TRANSITSYSTEM SUPPORT FUNDAMENDING
FOR THE PURPOSE SECTIONS 7AND 8 OF REPUBLIC ACT NO. 8794, OTHERWISE
KNOWN AS THE “MOTOR VEHICLE USER’S CHARGEACT OF 2000”

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 “Special Mass Transit System
Support Fund Act of 2016”.
SEC. 2.Disposition of Monies Collected, - Section 7 of R.A. No. 8794 is hereby further
amended to read as follows:
“SEC. 7.Disposition of Monies Collected. - All monies collected under this Act
shall be earmarked solely and used exclusively [(1)] for [road maintenance and the
improvement of road drainage, (2) for the installation of adequate and efficient traffic
lights and road safety devices, and (3) for air pollution control. THE
CONSTRUCTION/ IMPROVEMENT/ REHABILITATION OF OUR MASS
TRANSIT SYSTEM, INCLUDING THE ACQUISITION OF ROAD RIGHT-OF-
WAY FOR SUCH PROJECTS.
All such monies collected shall be deposited in [four (4)]A special trust account[s]
in the National Treasury, TO BE KNOWN AS THE SPECIAL MASS TRANSIT
SYSTEM SUPPORT FUND.[namely: (1) Special Road Support Fund;(2) Special Local
Road Fund; (3) Special Road Safety Fund; and (4) Special Vehicle Pollution Control
Fund. The distribution of collections under this Act shall be as follows:
1, Eighty percent (80%) shall be allotted to and placed in the Special Road
Support Fund;

2. Five percent (5%) shall be allotted to and placed in the Special Local Road
Fund;

3. Seven and one-half percent (7.5%) shall be allotted to and placed in the Special
Road Safety Fund; and

4, Seven and one half percent (7.5%) shall be allotted to and placed in the Special
Vehicle Pollution Control Fund,}

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The Special [Road] MASS TRANSIT SYSTEM Support Fund[, the Special
Local Road Fund and the Special Road Safety Fund] shall be under the [DPWH, whereas
the Special Vehicle Pollution Control Fund shall be under the] DEPARTMENT OF
TRANSPORTATION AND COMMUNICATION (DOTC).

[Seventy percent (70%) of the Special Road Support Fund shall be used for the
maintenance of, and the improvement of drainage of national primary roads. The
remaining thirty- percent (30%) thereof shall be allocated and used for the maintenance,
and improvement of drainage of national secondary roads throughout the country.]

[The cost of installation of adequate and efficient traffic lights and road safety
devices throughout the country, where such traffic lights and safety devices are needed,
shall be taken from the Special Road Safety Fund.

A Road Board to implement the prudent and efficient management and utilization
of the special funds shall be organized by the President of the Philippines. The Road
Board shall be composed of seven (7) members, with the secretary of the [DPWH]
DOTC as ex officio head, and the secretaries of the Department of PUBLIC WORKS
AND HIGHWAYS, Finance, AND Budget and Management, [and the Transportation
and Communication,| as ex officio members. The remaining three (3) members shall
come from transport and motorist organizations, which have been in existence and active
for the last five (5) years prior to this Act. They shall be appointed for the term of two (2)
years each by the President of the Philippines upon the recommendation of the secretaries
of the DPWH and the DOTC.”

SEC. 3. Section 8 of R.A. No. 8794 is hereby further amended to read as follows:
(C. 8. The [four (4)] special fundfs} established under this Act shall be distinct

and separate from and in addition to any appropriation authorized and granted yearly to
the [DPWH and the] DOTC to cover expenditures for the identified objects of
expenditures under this Act. Congress shall continue to appropriate an amount in the

General Appropriations Act for [road maintenance of the DPWH] THE

CONSTRUCTION, IMPROVEMENT AND REHABILITATION OF THE MASS

TRANSIT SYSTEM OF THE DOTC: Provided, however, That any savings for each

year out of such appropriation shall revert to the General Fund. Any savings from the

special fund created herein shall accrue to this special fund.”

SEC. 4. Implementing Rules and Regulations. The Secretary of the DOTC shall
promulgate the necessary implementing rules and regulations within sixty (60) days from the
effectivity of this Act.

SEC. 5. Separability Clause. If any provision of this Act is declared unconstitutional or
invalid, other parts or provision hereof not affected thereby shall continue to be in full force and

effect.

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SEC. 6. Repealing Clause. All other laws, orders, decrees, issuances, circulars, rules and
regulations or parts thereof which are inconsistent with any of the provisions of this Act are
hereby repealed or modified accordingly.

SEC. 7. Effectivity Clause. This Act shall take effect fifteen (15) days from the date of
publication in the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,

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