WHEREAS, under Presidential Decree No. 824, as amended by Presidential Decree No. 1274, the Metropolitan Manila Commission was created, among others, to act as a central government to establish and administer programs and provide services common to the area, and to establish and operate a transport and traffic center which shall direct traffic activities;

WHEREAS, traffic congestion in Metropolitan Manila has reached alarming and critical proportions and the institution of a highly efficient traffic management system particularly relating to traffic violations has become imperative to remove or at least minimize the difficulties, discomfort and inconvenience of the residents and sojourners therein;

WHEREAS, it is now high tine that the Metropolitan Manila Commission be afforded greater authority and support in carrying out its said responsibility by rationalizing the use of roads, streets and thoroughfares in Metropolitan Manila and penalizing traffic violators to ease the traffic problem;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree the following:

SECTION l. The Metropolitan Manila Commission shall have the power to impose fines and otherwise discipline drivers and operators of motor vehicles for violations of traffic laws, ordinances, rules and regulations in Metropolitan Manila in such amounts and under such penalties as are herein prescribed. For this purpose, the powers of the Land Transportation Commission and the Board of Transportation under existing laws over such violations and punishment thereof are hereby transferred to the Metropolitan Manila Commission. When the proper penalty to be imposed is suspension or revocation of driver's license or certificate of public convenience, the Metropolitan Manila Commission or its representatives shall suspend or revoke such license or certificate. The suspended or revoked driver's license or the report of suspension or revocation of the certificate of public convenience shall be sent to the Land Transportation Commission or the Board of Transportation, as the case may be, for their records update.

SEC. 2. Operators of public utility motor vehicles or owners of private motor vehicles or their attachments, if any, which shall stall on public roads, streets or thoroughfares in Metropolitan Manila shall pay a fine of two hundred pesos (P200,00) to the Metropolitan Manila Commission, through the city or municipal treasurer of the locality where the vehicles stalled, which shall allocate portions thereof to the local government units of Metropolitan Manila to be used exclusively for traffic management and control activities in that particular local government. In addition thereto, for vehicles towed by traffic enforcement agencies, a towing fee shall be imposed in such amounts as may be determined by the Commission, which shall be paid to the treasurer of the city or municipality where the vehicles are impounded.

For the effective implementation of this section, the Metropolitan Manila Commission is hereby empowered to prescribe penalties and surcharges, the manner of impounding and disposition of stalled motor vehicles and their attachments, and on other related matters.

SEC. 3. Violations of traffic laws, ordinances, rules and regulations, committed within a twelve-month period, reckoned from the date of birth of the licensee, shall subject the violator to graduated fines as follows: P10.00 for the first offense, P20.00 for the second offense, P50.00 for the third offense, a one-year suspension of driver's license for the fourth offense, and a revocation of the driver's license for the fifth offense: Provided, That the Metropolitan Manila Commission may impose higher penalties as it may deem proper for violations of its ordinances prohibiting or regulating the use of certain public roads, streets or thoroughfares in Metropolitan Manila.

In case of death, physical injury, or damage to property, the payment of the aforecited fine shall not relieve the offender from any civil as well as criminal liability arising from such death, physical injury, or damage to property.

SEC. 4. All fines imposed by the Metropolitan Manila Commission for traffic violations under this Decree, if uncontested, shall be paid either to the city or municipal treasurer of the locality in Metropolitan Manila where the offense or violation was committed, or to the Philippine National Bank or the Philippine Veterans Bank and their branches. These treasurers and banks shall immediately transfer all collections to the Metropolitan Manila Commission which shall hold the fund and allocate the same to be used exclusively for traffic management and control activities therein.

SEC. 5. In case of traffic violations, the driver's license shall not be confiscated but the erring driver shall be immediately issued a traffic citation ticket prescribed by the Metropolitan Manila Commission which shall state the violation committed, the amount of fine imposed for the violation and an advice that he can make payment to the city or municipal treasurer where the violation was committed or to the Philippine National Bank or Philippine Veterans Bank or their branches within seven days from the date of issuance of the citation ticket.

If the offender fails to pay the fine imposed within the period herein prescribed, the Metropolitan Manila Commission or the law-enforcement agency concerned shall endorse the case to the proper fiscal for appropriate proceedings preparatory to the filing of the case with the competent traffic court, city or municipal court.

If at the time a driver renews his driver's license and records show that he has an unpaid fine, his driver's license shall not be renewed until he has paid the fine and corresponding surcharges.

SEC. 6. The PC METROCOM, the Metropolitan Police Force and the Constabulary Highway Patrol Group shall assist the Metropolitan Manila Commission in enforcing and carrying out the provisions of this Decree.

SEC. 7. The Metropolitan Manila Commission shall promulgate rules and regulations necessary for the proper and effective implementation of this Decree.

SEC. 8. Insofar as the Metropolitan Manila area is concerned, all laws, decrees, orders, ordinances, rules and regulations, or parts thereof inconsistent herewith are hereby repealed or modified accordingly.

SEC. 9. This Decree shall take effect immediately.

Done in the City of Manila on this 21st day of November, in the year of Our Lord, nineteen hundred and seventy-eight.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JACOBO C. CLAVE
		Presidential Assistant