This Act is enacted to enhance transportation functions in urban areas, improve the living environment, promote the comprehensive development of a mass rapid transit system, and increase public welfare.

With regard to the planning, construction, operation, supervision, and security of the mass rapid transit system, this Act shall prevail. To matters not specified herein, other relevant laws shall apply.

1. The term "Mass Rapid Transit System" used herein shall mean public transportation systems which use ground-level, underground or elevated facilities for exclusive power vehicles driving on designated routes to transport large quantity of passengers within urban areas and neighborhoods with high frequency and quick service.
2.The mass rapid transit system referred to in the preceding paragraph is divided into the following two types according to its right-of-way:
(1) Exclusive right-of-way: All the routes are fully independent and exclusive without interference from road traffic.
(2) Non-exclusive right-of-way: Ground-level mass rapid transit routes that are partially physically separated from facilities established for the use of other vehicles. Exceptions are: no establishment of separation facilities at intersections, insufficient road space, or where there are other specific conditions and the mass rapid transit system shares road space with other vehicles.
3.The length of the shared road lanes for the mass rapid transit system with non-exclusive right-of-way shall not be longer than one quarter of the total length of the mass rapid transit route. However, specific conditions that have been submitted to the Executive Yuan via the central competent authority for approval are not subject to this restriction.
4.The mass rapid transit system referred to in Subparagraph 2 of Paragraph 2 of this Act shall take the following factors into consideration: traffic safety at intersections, pedestrians and traffic conditions, and traffic signals. Traffic priority or sound and light signals shall be installed.

1. The "Competent Authority" for the massive rapid transit system referred to herein shall mean the Ministry of Transportation and Communications at the central government level, municipal governments at the municipal level, and county (city) governments at the county (city) level.
2. The municipal and county (city) governments are entitled to negotiate with each other to generate the competent authority while the network spans two or more administrative regions. If no agreement can be reached through amicable negotiations, the case shall be referred to the Ministry of Transportation and Communications for a decision.

1. The construction cost for the mass rapid transit system and the proportions to be paid by different level of governments shall be included in the financial plan of the planning report in accordance with the first paragraph of Article 12, and shall be reported or referred by the central competent authority to the Executive Yuan for ratification.
2. The private sectors who undertake the construction referred to Paragraph 1 shall raise funds by themselves unless other regulations apply.

The land required for the mass rapid transit system may be expropriated or appropriated according to relevant regulations.

1. In order to effectively use land resources and promote regional development, the competent authority shall implement the development of land for routes, depots, stations, and land adjacent to the mass rapid transit system.
2. Any one of the following circumstances shall define “land adjacent to the mass rapid transit system” referred to the preceding paragraph:
(1) The land immediately adjacent to mass rapid transit system facilities.
(2) The land located in the same street block and can be integrated into the construction site of the land required for mass rapid transit system facilities.
(3) The land located in neighboring street blocks of mass rapid transit system facilities and connected via underpass or overpass structures.
3. The competent authority may cooperate with the Ministry of the Interior or the relevant municipal and county (city) governments to adjust the use/zoning control for local land or the use/zoning control for regional land, so that such land may be developed in accordance with Paragraph 1 of this article.
4. The land required for the routes, depots, stations, and the development of areas adjacent to the mass rapid transit system may be acquired by compensated appropriation, purchase agreement, re-zoning of city-owned land, or zone expropriation. The regulations for purchase agreements shall be prescribed by the competent authority. If an agreement to purchase the land cannot be reached, the competent authority may then expropriate such land in accordance with applicable laws.
5. The competent authority may consult with the relevant authorities in charge of urban planning and land administration to acquire the land required for the development of routes, depots, stations, and areas adjacent to the mass rapid transit system through the method of zone expropriation after ratification made by the central competent authority in accordance with zone expropriation related regulations. Meanwhile, the competent authority shall announce its decision to implement urban planning and to proceed with land development within one year after the expiration of the notice period of such expropriation without being subject to the restrictions in Article 52 of the Urban Planning Act. 6.
6. The land required for the development of routes, depots, stations, and relevant ancillary facilities of the mass rapid transit system through the method of zone expropriation shall be registered on the zone expropriation proposal as land owned free of charge by the competent authority.
7. The regulations for the planning, application, reviewing, land acquisition process, development methods, items of permitted use, application deposit, performance bond, incentives, and management and supervision referred to in Paragraph 1 shall be prescribed by the Ministry of Transportation and Communications in conjunction with the Ministry of the Interior.
The disposal, creation of encumbrances, leases, or benefits from the publicly owned land developed by the competent authority, and the fixed properties acquired by the competent authority because of said development shall not be subject to the restrictions in Article 25 of the Land Act, Article 28 of the National Property Act, and the regulations for the management of government-owned assets by local governments.

1. The competent authority may establish a fund for the land development referred to in Paragraph 1 of the preceding article. The sources of the fund are as follows:
(1) A proportion of the revenue from selling ( leasing) and management of fixed properties acquired because of land development
(2) Benefits or royalties earned from the implementation of land development
(3) Appropriations by the competent authority following the budget processes
(4) Interest from the fund
(5) Other revenues
2. The regulations for the revenues and expenditures, the management and the usage of the fund referred to in the preceding paragraph shall be prescribed by the central competent authority if the fund is established by the central authority, and reported to the Executive Yuan for approval and promulgation. The local competent authority shall also set the regulations if the fund is established by the local authority.

In order to facilitate mass rapid transit system communications, the organization of construction or operation of mass rapid transit system may establish the exclusive mass rapid transit system telecommunications after obtaining approval from the Ministry of Transportation and Communications.

The competent authorities of different levels of government may establish negotiation committees to deal with issues such as planning, construction and operation in order to promote the development of the mass rapid transit system.