This Act is enacted to enhance the planning, construction, and maintenance of highways; to ensure highway systems to be operated properly; and to develop highway transportation businesses meet the purpose of promoting public welfare and traffic safety.

Definitions:
(1) "Highway": includes national highways, provincial highways, city highways, county highways, district highways, country roads, special highways and any highway-related facilities.
(2) "National highway": includes freeways or expressways which connect two or more municipalities (or provinces), major ports, airports, or major political, economic and cultural centers.
(3) "Provincial highway": includes major roadways which connect two or more counties or municipalities (or provinces), or major political, economic and cultural centers.
(4) "City highway": includes roads which connect municipalities (or counties) or major districts within municipalities.
(5) "County highway": includes roads which connect counties (cities) or county center with major townships.
(6) "District highway": includes roads which connect districts within or district centers with the villages or indigenous peoples' neighborhoods in the district.
(7) "Country roads": includes roads which connect neighbor townships or villages, and indigenous peoples' neighborhoods within the township.
(8) "Special highway": includes roads constructed by public or private institutions for their exclusive transport use.
(9) "Vehicle": includes cars, trolleybuses, slow-moving vehicles, and other motor vehicles on roadways.
(10) "Car": includes vehicles powered by a prime mover, not including the vehicles powered by electricity installed on rail.
(11) "Trolleybus": includes any electric bus that draws its electricity from overhead wires, or any electric power vehicle which runs on tracks along public urban streets.
(12) "slow-moving vehicles": includes pedal-powered bicycles, electric power-auxiliary bicycles, electric bicycles, human or animal-driven vehicles with three wheels or more.
(13) Highway Operation Enterprise: a business that constructs, maintains, or manages highways and parking lots, and charging the users for transportation or parking.
(14) "Automobile or Trolleybus Transportation Enterprise": an enterprise engaging in the business of transportation service by automobile or trolleybus.
(15) "Taxicab Transportation Service": a business of carrying passengers by taxi.

The competent authority of highway administration as referred to this Law shall mean the Ministry of Transportation and Communications (hereinafter, "MOTC") at central government, the Municipality government at municipals, and the county (city) government at counties.

Highway systems shall be designed in accordance with the national construction master plan’.
Setting procedures are as follows:
(1) National highways and provincial highways are drafted by the MOTC, and ratified and promulgated by the Executive Yuan.
(2) City highways and district highways are drafted by municipality governments, and ratified and proclaimed by the MOTC.
(3) County highways and country roads are drafted by county (city) governments, and ratified and proclaimed by the MOTC.
Urban roads incorporated into highway route systems are considered as highways; and their associated setting procedures are drafted by the MOTC and municipality or county governments, respectively, as the provisions in sections (2) and (3) above.
City and county highway systems are numbered by the MOTC before being ratified and promulgated under the provisions in the first two paragraphs.
The two aforementioned procedures also apply to the abolishment of highway system plans or existing highways.
The design of highway route systems mentioned in the first paragraph shall be drafted by highway authorities based on functions and design standards for the highways defined in Article 2. The criteria for classification of highways are determined by the MOTC.

Where provincial highways and National highways share routes, the shared sections shall be considered as part of the national highway system. Where city highways, county highways and provincial highways share routes, the shared sections shall be considered as part of the provincial highway route system.
Where district highways and city highways share routes, the shared sections shall be considered as part of the city highway system. Where and county highways share routes, the shared sections shall be considered as part of the county highway system. Where urban roads and highways, rather than special highways, share routes, the shared sections shall be considered as part of the highway system.

National highways and provincial highways are governed by the central highway authority. But for the provincial highways passing through municipalities or city districts, governance over the highway sections in the municipalities or city districts, except expressways as an unique systems, shall be determined after the negotiation between the central highway authority and municipality governments or city governments.
City and district highways are governed by municipality highway authorities; and county highways and country roads are governed by county (or city) highway authorities. But when municipality and county (or city) highway authorities consider it is necessary to delegate part of city or county highways to the central highway authority, they may consult the central highway authority to determine a limited period of highway governance.
The period of governance of the highways delegated under the preceding paragraph is up to three years after the county (or city) changes into a municipality.
If The two procedures, rights and obligations and management referred to the second paragraph shall be prescribed by the MOTC.

To facilitate communication, highway businesses may establish dedicated telecommunication systems for exclusive use under the rules of the Telecommunications Act.

All assets and transported goods of highway businesses are not subject to inspection, commandeering or seizure unless authorized by laws.

Land required by highways may be acquired by eminent domain or transition according to laws.
When planning, constructing, or broadening highways, the route width shall be surveyed by highway authorities, and assigned as highway land in collaboration with land administration authorities. Land located within urban project districts shall first undergo urban project modifications. Regarding change of utilization purpose for non-urban land, the application for rezoning and classification shall be made in accordance with the “Regional Planning Law” and “Regulations Governing the Utilization Control of Non-Urban Land”.
Highway land assigned under this article is subject to be surveyed, divided, registered, marked, promulgated as prohibited or restricted against construction, and the landowner shall be notified of such actions.

This Act does not apply to roads for military use.