Newsletter
Draft Amendments to the Mass Rapid Transit Act and Article 19-1 of the Railway Act
In response to the Judicial Yuan Interpretation No. 743, and in order to develop the rail industry in Taiwan with the establishment of the testing and certification system of the respective products for the mass rapid transit (“MRT”) system and the railway as well as for a necessity to appropriately relax the restrictions on the construction prohibited areas for the MRT system, the Executive Yuan passed the draft amendments to the Mass Rapid Transit Act (“MRT Act”) and Article 19-1 of the Railway Act in July 2019, which will be sent to the Legislative Yuan for review.
The main points of the two drafts are as follows:
1. Draft Amendments to the MRT Act:
(1) Demarcation of “MRT Development Zone” and the Competent Authority’s Expropriation of the Land Required for the MRT Transportation Enterprises in Accordance with the Applicable Laws (Article 7):
The Constitutional Court ruled, in J.Y. Interpretation No. 743, that the competent authority’s expropriation of the land not required for the transportation enterprises but adjacent to the MRT system in accordance with applicable laws on land development under the current Article 7 of the MRT Act is a violation of the intention of the Constitution to protect the property rights of the people and the freedom of residence thereof. To comply with such Interpretation, the land required for development demarcated by the competent authority according to the Regional Plan Act and other regulations is set out as the “MRT Development Zone,” which does not include the land adjacent to the MRT system. Further, it sets out that the competent authority may only expropriate the land in the MRT Development Zone required for the MRT transportation enterprises in accordance with the applicable laws. It also sets out that the real property in the MRT Development Zone may be transferred to a third party.
(2) Establishment of the Testing and Certification System of the Products for the MRT System (Article 24-3):
After applying for testing or certification to the testing or certification institutions recognized by the competent authority, the products for the MRT system designated by the central competent authority, including materials, parts and components, hardware devices, software appliances, systems, and other parts constituting the MRT system may be used. The central competent authority is empowered to set the categories and items of the designated products as well as the testing procedures and the certification standards thereof. In addition, the competent authority may ratify the test reports or the letters of certification issued based on the mutual recognition agreement or the multilateral recognition arrangement signed by Taiwan or which are in line with the international convention.
(3) Increase in the Flexibility of Operation of the MRT System (Article 25):
In addition to establishing or selecting an operation organization, the central and local competent authorities may commission existing public transportation enterprises, such as the Taiwan Railway Administration and the Taiwan High Speed Rail Corporation, to operate the MRT system as required by operation.
(4) Relax the Restrictions on the Public Construction in the MRT Construction Prohibited Areas (Article 45-1):
Traffic signals, roads, embankment stabilization and other public constructions to be installed or constructed in the MRT construction prohibited areas may not be subject to the restrictions on the construction prohibited areas after being approved by the competent authority and essential measures are adopted.
2. Draft Amendment to Article 19-1 of the Railway Act:
Establishment of the Testing and Certification System of the Products for the Railway (Article 19-1)
After applying for testing or certification to the testing or certification institutions recognized by the competent authority, the products for the railway designated by the central competent authority, including materials, parts and components, hardware devices, software appliances, systems, and other parts constituting the railway may be used. The central competent authority is empowered to set the categories and items of the designated products as well as the testing procedures and the certification standards thereof. In addition, the competent authority may ratify the test reports or the letters of certification issued based on the mutual recognition agreement or the multilateral recognition arrangement signed by Taiwan or which are in line with the international convention.
In the future, if the draft amendments are passed by the Legislative Yuan, the competent authority may acquire the land in the MRT Development Zone through compensated appropriation, purchase agreement, zone expropriation, or other means. Meanwhile, the competent authority may only expropriate the land in the MRT Development Zone required for the MRT transportation enterprises in accordance with the applicable laws so as to protect the property rights of the people and the freedom of residence thereof under the Constitution.