Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

20th CONGRESS
First Regular Session

HOUSE BILL NO. _ 3734

Introduced by REP. JUAN CARLOS “ARJO” C. ATAYDE

AN ACT
ESTABLISHING MINIMUM PERFORMANCE STANDARDS AND
ACCOUNTABILITY MEASURES FOR DRIVING SCHOOLS, AND FOR OTHER
PURPOSES

EXPLANATORY NOTE

In recent years, concerns have grown over the mushrooming of expensive yet
underperforming driving schools across the country. These institutions, while officially
accredited by the Land Transportation Office (LTO), have collected substantial fees from
leamers without guaranteeing effective instruction or acceptable performance in the
Theoretical and Practical Driving Exams.

This measure seeks to introduce a system of accountability based on actual student
Performance, particularly driving test passing rates, to assess the instructional quality of
accredited driving schools. Those with consistently low passing rates will be subject to
Progressive penalties, ranging from mandatory retraining to revocation of accreditation.

4 2022 Commission on Audit (COA) report revealed that 189 out of 285 driving
schools were issued permits despite incomplete documentation and non-compliance
with facility standards. COA noted that “the inspection reports of the LTO’s Regional


Accreditation Committees cannot be relied upon,” pointing to a systemic failure in

screening and monitoring educational quality.

Further undermining public trust, several reports have surfaced of schools issuing,
course completion certificates through “non-appearance" _ schemes— providing
credentials to students who never attended any session. As noted in an official LTO
statement during a crackdown in late 2024, “what is at stake is the safety of road users,”

highlighting how compromised training can endanger lives.

Public frustration has also centered on the cost-benefit mismatch of enrolling in
accredited driving schools. According to reports, some students paid upwards of P9,500
for required courses, only to fail their LTO exams due to substandard instruction. These
expenses are particularly heavy on ordinary citizens, prompting accusations that the

system is “anti-poor and burdensome” rather than educational and enabling.

The call for reform is not unique to the Philippines. International models
demonstrate that performance monitoring—such as the UK’s public disclosure of test
center pass rates and New York State's periodic instructor assessments —helps weed out

ineffective schools while empowering students to make informed choices.

Moreover, research from Nebraska, USA, involving over 150,000 teen drivers,
found that those who underwent formal driver education were 24% less likely to be
involved in a fatal or injury crash and 75% less likely to receive a traffic citation during
their first year. These outcomes emphasize that effective instruction leads to safer driving,
and poor-quality instruction must therefore not be tolerated in any country striving for
better road safety.

This measure aims to institutionalize a Minimum Annual Pass Rate policy,
requiring driving schools to maintain a passing threshold among their students. Schools
falling short will be subjected to a tiered response system—starting with retraining and

moving toward license revocation in cases of repeated underperformance.


We also propose regular performance audits, mandatory publication of pass rates,
and greater transparency in pricing, all geared toward protecting the Filipino learner
from exploitative practices. As the LTO itself warned, fraudulent or poor-quality training

"defeats the whole purpose of driver education."

This bill ultimately promotes consumer protection, educational integrity, and road
safety. It ensures that aspiring drivers receive the quality instruction they pay for, and
that only competent, well-trained individuals are granted the privilege of operating

vehicles on public roads.

In view of the foregoing, immediate passage of this measure is earnestly sought.

REP. JUAN C. OS “ARJO” C. ATAYDE


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

20th CONGRESS
First Regular Session

HOUSE BILL NO. _ 3734

Introduced by REP. JUAN CARLOS “ARJO” C. ATAYDE

AN ACT
ESTABLISHING MINIMUM PERFORMANCE STANDARDS AND
ACCOUNTABILITY MEASURES FOR DRIVING SCHOOLS, AND FOR OTHER
PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled:

SECTION 1. Title. - This Act shall be known as the “Driving School Quality

Assurance Act.”

SEC. 2 Declaration of Policy. - It is the policy of the State to ensure that all
licensed drivers in the Philippines are equipped with adequate knowledge, skills, and
safety awareness. The State shall ensure that accredited driving schools meet a minimum
standard of instruction quality and are held accountable for the performance of their

students in government-administered examinations.

SEC. 3. Coverage. - This Act shall apply to all driving schools, institutions, and
training centers accredited by the Land Transportation Office (LTO) to conduct the
Theoretical Driving Course (TDC) and Practical Driving Course (PDC) for student
drivers, whether privately or publicly operated.


SEC. 4. Minimum Passing Rate Requirement. - All LTO-accredited driving
schools shall maintain an annual minimum student passing rate of seventy-five percent

(75%) in both the TDC and PDC administered by the LTO.

SEC. 5. Publication of Performance Ratings. The LTO shall publish, on its official

website, the annual performance of each accredited driving school, including:
1. Overall passing rates in TDC and PDC;
2. Total number of students enrolled and examined;

3. Any violations, complaints, or sanctions imposed.

SEC. 6. Tiered Accreditation System. - A tiered accreditation system shall be
established by the LTO, ranking driving schools based on student passing rates,
instructor qualifications, compliance with LTO curriculum standards and verified
student feedback and complaints.

Driving schools with the lowest tier rating for two consecutive years may be

subject to suspension or revocation of accreditation.

SEC. 7. Independent Quality Audit. ~The LTO shall conduct random quality
audits of driving schools, which may include, among others, class observation, review

of training materials and attendance records, interviews with students, random
validation exams.

SEC. 8. Consumer Protection Measures. Driving schools whose annual TDC or
PDC passing rates fall below fifty percent (50%) shall be required to offer its failing
students partial refund of training/ enrolment fees and/or free review sessions for
students who failed their respective LTO exams.


SEC. 9. Instructor Licensing and Training. ~ All instructors of accredited driving
schools shall:

1. Possess a valid LTO-issued instructor license;
2. Complete periodic refresher courses as prescribed by the LTO;
3. Be subject to evaluation during quality audits.

SEC. 10. Transparent Fee Disclosure. All driving schools shall publish a clear and
itemized fee schedule for all courses offered and comply with maximum fee ceilings set
by the LTO and the Department of Trade and Industry (DTI), where applicable.

SEC. 11. Public Grievance Mechanism. The LTO shall establish and maintain a
public grievance platform (online and hotline-based) for reporting of substandard
training, unethical practices, overcharging, or false certifications.

All valid complaints shall be investigated and resolved within thirty (30) calendar
days.

SEC. 12. Centralized Performance Monitoring. The LTO shall maintain a
centralized database linking every student's examination performance to the driving
school of origin. This data shall be used to evaluate institutional performance and guide

accreditation decisions.

SEC. 13. Penalties. Any accredited school found falsifying records, issuing
certificates without proper instruction, or repeatedly failing to meet the requirements of
this Act shall be subject to suspension or revocation of LTO accreditation and/or fines as
determined by the LTO. This is without prejudice to criminal prosecution under relevant

laws, whenever it is applicable.

SEC. 14. Implementing Rules and Regulations. ~ Within ninety (90) days from the
effectivity of this Act, the LTO, in coordination with DTI, shall promulgate the necessary
rules and regulations for its implementation.


SEC. 15. Appropriations. The amount necessary for the implementation of this
Actshall be charged against the current appropriations of the LTO. Thereafter, such sums
as may be necessary shall be included in the annual General Appropriations Act.

SEC. 16. Separability Clause. If any provision of this Act is declared
unconstitutional or invalid, the remaining provisions not affected shall remain in full

force and effect.

SEC. 17. Repealing Clause. All laws, orders, rules, and regulations inconsistent
with the provisions of this Act are hereby repealed or amended accordingly.

SEC. 18. Effectivity. This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,