Law Summary
Definitions
- "Highway" includes roads, rights of way, bridges, ferries, drainage, signs, and guard rails.
- "Division of Highways" refers to the bureau responsible for highway administration, including regional offices.
- "Maintenance" involves routine repairs and ferry operations but excludes major reconstruction.
- "Construction" covers supervision and actual building, including right of way costs but excluding surveying.
- "Reconstruction" means widening or rebuilding to meet traffic needs.
- "Improvement" means upgrading beyond ordinary repairs with better materials or workmanship.
- "Local funds" are monies from provinces, cities or municipalities excluding Highway Special Fund allocations.
- "Primary roads" are main trunk lines; "secondary roads" are access roads excluding feeder roads.
- "Vehicle-kilometer" measures road use by multiplied vehicle count and road length.
- "Right-of-way" is land reserved for highway purposes.
Disposition of Highway Revenue
- Taxes on motor fuel and other highway-related collections form a Highway Special Fund.
- A portion of the fund is for administrative expenses, highway equipment, and emergency contingencies.
- Administrative expenses limit: up to 3% of the fund.
- Equipment acquisition limit: up to P2.5 million initially, then up to 1% annually.
- Emergency fund: 6% for disaster relief related to roads.
- Unused emergency funds may be reallocated for highway improvements.
Apportionment
- 50% of the Highway Special Fund is for maintenance released quarterly.
- Remaining 50% is for improvements, reconstruction, paving, and construction.
- Maintenance funds apportioned based on population, equitable shares among provinces/cities, road lengths, and vehicle registrations.
- National aid for maintenance requires matching local funds and designation of maintenance programs.
- Improvement funds are apportioned based on potential agricultural/industrial areas, vehicle-kilometers, property assessments, and equal distribution to municipalities.
- Secretary of Public Works may allocate discretionary funds prioritizing counties with inadequate bridge infrastructure.
- National aid projects must integrate with the national and "national aid" systems.
- Loans and revolving funds can be used to finance bridge construction, amortized from the Highway Special Fund.
Improvement and Construction
- Division of Highways supervises all national aid projects.
- Projects above P10,000 require public bidding.
- Highway surfaces and widths must meet durable standards and future traffic needs.
- Right-of-way must comply with Division of Highways’ minimum standards.
- Engineering costs capped at 10% of total construction cost.
Organization and Personnel
- Positions in the Division of Highways follow approved administrative orders.
- Secretary of Public Works appoints key personnel based on merit and experience.
- Permanent personnel maintain their status and benefits.
- Personnel rotation policies are instituted to encourage skill development.
Budget and Accounts
- Annual budgets for highway operations must be approved by the President.
- Maintenance funds released automatically without budget prerequisite.
- Other expenditures require detailed budgets.
- An accounting section established within the Division of Highways for fiscal and cost accounting.
- A highway equipment account is maintained for procurement and maintenance of equipment.
- Preference for locally produced materials in highway projects if quality and price are comparable.
Integrated System of Highways
- Secretary of Public Works to review and prepare master plans for a primary and secondary highway system considering military needs.
- The system classification must be submitted to the National Transportation Board and established by Executive Order.
- Funds under this Act are to be expended for the integrated highway system.
Rules, Regulations and Reporting
- The Secretary of Public Works shall issue rules to implement the Act and ensure highway safety.
- Annual reports on highway projects, funds, expenditures, personnel, and recommendations must be submitted to the President.
Special Provisions and Penalties
- No spending from the Highway Special Fund for 45 days before elections except for routine maintenance, ongoing contracts, and preparatory expenses.
- Penalties for unauthorized use or obstruction of highways include fines up to P200 or imprisonment up to 3 months.
- Tampering with highway boundaries or structures is penalized under the Revised Penal Code.
- Damage causing accidents attracts additional penalties.
Final Provisions
- Repeals inconsistent laws including the Philippine Road Law.
- The act takes effect upon approval, with certain sections effective January 1, 1954.