Parking Fee Regulation Act

Senate Office of the erretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) First Regular Session 25 SEP 16 P6:28 SENATE RECEIVED BY S. No. 1398 Introduced by Senator Rodante D. Marcoleta AN ACT REGULATING THE IMPOSITION OF FEES FOR THE USE OF PARKING SPACES LOCATED WITHIN COMMERCIAL AND BUSINESS ESTABLISHMENTS, INSTITUTIONS, AND OTHER PARKING FACILITIES, AND PRESCRIBING PENALTIES FOR VIOLATIONS THEREOF EXPLANATORY NOTE It is the declared policy of the State to protect the interests of the consumer, promote the general welfare and to establish standards of conduct for business and industry as embodied under Article 2 of Republic Act No. 7394 or the Consumer Act of the Philippines. Along with the growth of urbanization in the country comes the influx of motor vehicles in circulation. This reality is clearly glaring before us, given the traffic congestion people experience every day. In 2023, the average annual daily traffic was said to have risen to 3.6 million according to the Metro Manila Development Authority. I In addition to this, the car industry has experienced a new record high in vehicle sales of up to 8.7%. With these great numbers, the demand for parking areas has certainly increased making it a lucrative business venture for most people. However, due to the imbalance between the demand and the actual available parking areas, rates are being charged unreasonably and unconscionably by most business owners. Vehicles in NCR balloon to 1.1 million', PHILSTAR.COM, June 18, 2024, available at 1 Sheila Crisostomo, https://www.philstar.com/nation/2024/06/18/2363596/vehicles-ncr-balloon-11-million (last accessed on August 11, 2025). 2 Michael Lim new cars on the road? No, INQUIRER.NET, February 7, 2025, available at https://opinion.inquirer.net/180638/a-million-new-cars-on-the-road-no-thanks (last accessed on August 11, 2025).

The lack of regulation over the parking fee rates has been abused and taken advantage of by owners and operators of parking areas, both public or private. While the State recognizes the proprietary rights of business owners, its primary duty is to protect the general welfare of its citizens which includes protection against unfair and unconscionable sales, acts, and practices. This bill seeks to regulate the imposed parking fee rates and create a standard guideline that will be used throughout the country. Also, this measure seeks to provide senior citizens and persons with disabilities free parking for the first three (3) hours in all parking areas. In addition, there shall be corresponding penalties for any violation of this Act. Lastly, the Department of Trade and Industry together with the Department of Interior and Local Government, and other stakeholders shall conduct an assessment and review of the rates every two (2) years and recommend any change needed as dictated by the relevant economic factors. In view of the foregoing, the passage of this bill is earnestly sought. RODANTE D. MARCOLETA

Senate an emer of the a metare TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session ) 25 SEP 16 P6:28 SENATE RECEIVED BY: S. No. 1398 Introduced by Senator Rodante D. Marcoleta AN ACT REGULATING THE IMPOSITION OF FEES FOR THE USE OF PARKING SPACES LOCATED WITHIN COMMERCIAL AND BUSINESS ESTABLISHMENTS, INSTITUTIONS, AND OTHER PARKING FACILITIES, AND PRESCRIBING PENALTIES FOR VIOLATIONS 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 "Parking Fee Regulation

2 Act".

Sec. 2. Declaration of Policy. - It is the declared policy of the State to protect

4 the interests of consumers, promote their general welfare, and to establish standards 5 of conduct for business and industry.

Sec. 3. Definition of Terms. - For the purposes of this Act, the following terms

7 are hereby defined: a. Business establishments shall include buildings that are used as offices or residential units but open a part or whole of its parking space to the public; b. Commercial establishments shall include shopping malls, supermarkets restaurants, hotels, casinos, wellness centers, convention centers, trade exhibits, and other similar establishments that sell products or services; c. Institutions shall include educational or learning institutions, hospitals, medical centers, and other similar places; d. Parking areas refer to parking spaces offered by commercial establishments, business establishments, institutions, and parking facilities as defined in this Act;

e. Parking card refers to any article issued by the parking attendant, person-in- charge, or a parking machine to the driver of the vehicle upon entry in the parking area; f. Parking facilities refer to spaces or buildings dedicated primarily for parking with corresponding fees, such as in airports, seaports, bus terminals, train stations, local government units premises, and other government offices; g. Pass-thru refers to the temporary use of the parking area for not more than thirty (30) minutes to drop off or pick up passengers, to find a parking space, or for any other reason; h. Parking ticket/stub refers to a document, issued by a parking attendant or a parking machine to the driver of the vehicle upon entry in the parking area, which is made of paper, cardboard, or any similar material; i. Persons with disability (PWD) include those who have physical or mental impairment that substantially limits one or more psychological, physiological or anatomical function of an individual or activities of such individual, as defined under Republic Act No. 7277 or the Magna Carta for Disabled Persons, as amended; and, j. Senior citizen refers to any resident citizen of the Philippines at least sixty (60) years old, as defined under Republic Act No. 7432 or the Senior Citizens Act, as amended.

Sec. 4. Covered places. - This Act shall cover all commercial and business

establishments, institutions, and parking facilities that offer to the public, for a fee, the use of their parking spaces.

Sec. 5. Regulation of Parking Fees. - Establishments covered under Section 4

of this Act are encouraged to provide parking spaces to their customers for free of charge. Establishments that will impose parking fees for the use of their parking spaces shall follow and be subject of the following guidelines: a. For all types of cars, the fee shall not be more than Forty pesos (P40.00) for the first three (3) hours; with not more than Ten pesos (P10.00) per hour for the next succeeding hours;

b. For motorcycles, the fee shall not be more than Twenty pesos (P20.00) for the first three (3) hours; with not more than Ten pesos (P10.00) per hour for the next succeeding hours; c. For buses, the fee shall not be more than Two hundred pesos (P200.00) for the first three (3) hours; with not more than Fifty pesos (P50.00) per hour for the next succeeding hours; d. For overnight parking of all types of cars, a flat rate of Two hundred pesos (P200.00) per vehicle shall be charged, to cover the period from 12:00 midnight until 6:00 o'clock in the morning. Afterwards, the regular and standard rate shall then apply; e. For overnight parking of motorcycles, a flat rate of One hundred pesos (P100.00) per motorcycle shall be charged, to cover the period from 12:00 midnight until 6:00 o'clock in the morning. Afterwards, the regular and standard rate shall then apply; f. For valet services, a fee not exceeding One hundred pesos (P100.00) may be charged in addition to the standard parking fee; g. For pass-thru, a grace period of thirty (30) minutes shall be given to the driver of the vehicle wherein no fee shall be charged; h. For parking areas, where the customers purchase items or pay fees for services, facilities or amenities, the parking fee for the first three (3) hours shall be waived upon presentation of a valid purchase or payment receipt, either single or accumulated of at least One thousand pesos (P1,000.00): Provided, That the standard rate shall apply after the the third hour; i. For lost and damaged parking tickets, a maximum fee of One hundred pesos (P100.00) in addition to the parking fee due shall be imposed; and, j. For lost and damaged parking cards, a maximum fee of Two hundred pesos (P200.00) in addition to the parking fee due shall be imposed;

Sec. 6. Granting of Discounts, Promotions, Lower Rates and Free Parking. -

This Act does not prevent owners of parking areas from providing lower rates, 30 promotions, or free use of their parking spaces: Provided, That vehicles carrying 31 Senior citizens and Persons with disability (PWD) shall automatically be entitled to free parking rates for the first three (3) hours upon presentation of their valid Senior citizen

1 or PWD identification card, succeeding hours shall be subject to the regular rates as prescribed. Senior citizens or PWD shall be given priority in parking spaces and shall not 4 in any way be discriminated or prevented from entering the parking area.

Sec. 7. Issuance of Parking Ticket/Card. - Customers shall be issued a receipt

upon entering or exiting a parking area. The parking receipt must contain the date, time, and the plate number of the motor vehicle concerned.

Sec. 8. Publication of Parking Rates. - The rates, as provided in this Act, shall

9 be displayed in the entrance and other conspicuous locations in the parking area.

Sec. 9. Prohibition on Invoking Waiver of Liability - Establishments shall

11 maintain and provide security in their parking areas. They shall be responsible for the safety of their patrons and shall be prohibited from invoking the waiver of liability in case of loss of property or damage to the parked vehicles: Provided, That the prohibition shall likewise apply to operators and owners of buildings, vacant lots that are devoted primarily for use as parking spaces.

Sec. 10. Penalty. - Any person who violates the provisions of the preceding

sections shall be liable for a fine of not less than Fifty thousand pesos (P50,000.00), or imprisonment of not less than six (6) months, or both, upon the discretion of the Court. Commercial or business establishments, institutions, or parking facilities that will violate the provisions of this Act shall be liable for a fine of not less than One hundred thousand pesos (P100,000.00) per violation, and suspension or revocation of their license to operate, upon the discretion of the court.

Sec. 11. Implementing Rules and Regulations. - Within sixty (60) days from the

effectivity of this Act, The Department of Trade and Industry (DTI) shall, in consultation with the Department of Interior and Local Government (DILG) and other concerned agencies and stakeholders, issue the necessary rules and regulations for the effective implementation of this Act.

Sec. 12. Periodic Review. - The DTI, DILG and other concerned agencies, in

consultation with the owners of parking areas and other stakeholders, shall conduct an assessment and review of the parking rates set forth under this Act every two (2) years, and shall recommend changes based on relevant economic indicators.

Sec. 13. Separability Clause. - If any provision or part of this Act is declared

invalid or unconstitutional, the remainder thereof not otherwise affected shall remain in full force and effect.

Sec. 14. Repealing Clause. - All laws, presidential decrees, executive orders,

5 letters of instructions, proclamations or administrative regulations that are inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 15. Effectivity. - This Act shall take effect fifteen (15) days following its

8 publication in the Official Gazette or in a newspaper of general circulation. Approved,