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DATE: DEC 09 a

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Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

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EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 8167

Introduced by Representative ED CHRISTOPHER S. GO

AN ACT
REGULATING THE SALE OF MOTOR VEHICLES BY REQUIRING THE
INSTALLATION OF RADIO FREQUENCY IDENTIFICATION TAGS AS A
PRE-REQUISITE FOR THE PURCHASE OF MOTOR VEHICLES AND
REGISTRATION WITH THE LAND TRANSPORTATION OFFICE

Explanatory Note

The shift to a cashless and contactless payment system in Luzon toll
plazas is an ingenious innovation that has found its time. While it was
originally sought to address the constant bottlenecks at the toll plazas, the
COVID-19 pandemic has hastened the need of its implementation and
solidified the argument for its urgency. Quick to the draw, the two toll
collection companies, namely, the San Miguel Corporation and the NLEX
Corporation, have ramped up the installation to applicant-vehicles of Radio
Frequency Identification Tags (RFID) stickers, the electronic backbone of the
cashless and contactless toll payment scheme.

However, when the toll collection companies issued the ultimatum, a
deadline when the toll plazas will be completely electronic, confusion and the
heaviest of traffic crawls in toll roads ensued. The deadline had to be reset
from November to December 2020, and apprehension of vehicles without
RFID stickers had been put on hold up to January 2021. December 1, 2020,
the first day of its full implementation had now been referred to as either
carmaggedon or tollmaggedon as the snake of stalled vehicles in toll plazas
had reached five or more kilometers.

The terrible traffic experienced by motorists on expressways and
connecting roads due to the haphazard implementation of the No RFID, No
Entry Policy shows the need for a mandatory installation policy for these
devices on motor vehicles throughout Luzon and beyond. By requiring the
installation of these devices on new motor vehicles in Luzon within a


reasonable timeframe, we can ensure that all vehicles plying roads in areas
serviced by expressways will be able to access these important roads with
ease and convenience. In this way, we can avoid a repeat of the carmageddon
currently being faced by expressway-dependent motorists.

As such, this Act provides for the mandatory installation of RFID tags
on brand new and second-hand vehicles which are sold, purchased, delivered,
or registered within the island of Luzon - where all expressways and toll roads
are currently located. The installation of RFID tags shall be a pre-requisite for
the sale and registration of new motor vehicles in Luzon. The Land
Transportation Office will create a list of pre-approved RFID tags from a
number of reputable makers and ensure compliance with the No RFID, No
Registration hand policy. Meanwhile, toll operators will be required to install
RFID scanner systems which are compatible with all pre-approved RFID tags.
Taken all together, the provisions of this Act will create a seamless system to
ensure that every vehicle in expressway-served areas are RFID-ready.

In light of the foregoing, this representation most respectfully solicits
the support of the esteemed members of the House for the passage of this
measure.

ED CH S.GO
Representative
Isabela — 24 District


Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 8167

Introduced by Representative ED CHRISTOPHER S. GO

AN ACT
REGULATING THE SALE OF MOTOR VEHICLES BY REQUIRING THE
INSTALLATION OF RADIO FREQUENCY IDENTIFICATION TAGS AS A
PRE-REQUISITE FOR THE PURCHASE OF MOTOR VEHICLES AND
REGISTRATION WITH THE LAND TRANSPORTATION OFFICE

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

SECTION 1. Short Title - This Act shall be known as the “Mandatory

RFID for Motor Vehicles Act”.

SECTION 2. Declaration of Policy. - The State shall embrace and
adapt the concept of e-governance in the public and private sectors to boost
efficiency, cut red tape, and improve consumer outcomes. To this end, the
State shall implement a contactless system of payment on all expressways

and other toll roads in the Philippines.

SECTION 3. Definition of Terms. - For the purposes of this Act, the
following are defined as follows:
a. Brand new motor vehicle refers to a vehicle constructed entirely from

new parts and covered by the manufacturer’s express warranty at


the time of purchase that it has never been sold or registered with
the Department of Transportation or an appropriate agency or
authority, and has never been operated on any highway of the
Philippines, or in any foreign state or country, and is allowed to
operate on any toll road in the Philippines;

. Radio Frequency Identification (RFID) Tag refers to a sticker or similar
device affixed to motor vehicles that uses electromagnetic fields to
automatically identify and track the motor vehicles to which they are
attached for multiple purposes;

.. Second-hand motor vehicle refers to any vehicle that is not brand new
but is allowed to operate on and use any toll road in the Philippines;

. Toll Road refers to any expressway, highway, or other public
thoroughfare regularly plied by motor vehicles which imposes a toll,
fee or any other charge on individual motor vehicle users at any
entry, intermediate, or exit point;

. Toll Road Operator refers to any natural or juridical person owning,
managing, or operating a toll road, whether through its sole
prerogative or as part of a partnership, joint venture, or any other
business arrangement;

Toll Road Under Development refers to any toll road project which
has is currently at any stage of development, including but not
limited to the pre-planning stage, planning stage, ground breaking,

or construction;


SECTION 4. Coverage. - This Act shall apply to brand new and second-
hand motor vehicles sold, purchased, delivered, or registered in any part of
Luzon, or in any part of the Philippines wherein a toll road is under
development, has been completed, or is ready for operation or has already

begun operating.

SECTION 5. Mandatory Installation of RFID Tags on Brand New
Vehicles. - No brand-new motor vehicle shall be released or delivered by the
manufacturer either directly or through any agent to any vendee unless an
RFID tag has been installed on the vehicle; Provided, that the RFID tag is one
of those pre-approved devices appearing on the official list of the Land
Transportation Office.

No brand-new motor vehicle shall be registered by the Land
Transportation Office unless it has been verified that the vehicle has been

installed with a functioning pre-approved RFID tag.

SECTION 6. Non-Registration of Second-Hand Vehicles. - The
renewal of registration of any motor vehicle shall not be approved by the Land
Transportation Office unless it has been verified that the vehicle has been

installed with a functioning pre-approved RFID tag.

SECTION 7. Land Transportation Office. - The Land Transportation
Office shall have the following duties and functions under this Act:
a. Prepare within sixty (60) days from the effectivity of this Act a list of

pre-approved RFID tags which may be installed in compliance of this,


Act; Provided, that the LTO may add or remove RFID tags from the
list at any time, subject to administrative due process as the case
may be;

b. Establish a verification system to implement the policy of non-
registration of non-RFID tagged vehicles under Sections 5 and 6 of
this Act;

c. Conduct a public information drive through various media platforms
to inform existing and prospective motor vehicle owners of the
salient features of this Act requiring their compliance;

d. Determine as necessary whether the coverage of this Act under
Section 4 should be expanded to include any other part of the

Philippines;

SECTION 8. Duty of Toll Road Operators. - All toll road operators
shall within one hundred and twenty (120) days of the effectivity of this Act
install on every toll road in the Philippines at each point necessary an RFID
scanner or similar technology that is compatible with all RFID tags on the pre-
approved. Thereafter no toll road operator shall use any RFID scanner or
similar technology which is not compatible with all RFID tags and brands

approved by the Land Transportation Office.

SECTION 9. Prohibited Acts. - Any person accused of violating any
provision of this Act shall upon final conviction suffer the penalty of
imprisonment between six months to two years or a fine of One Hundred

Thousand Pesos (P100,000) or both, according to the discretion of the Court;


Provided, that any public officer or employee convicted under this Act shall
also suffer the penalty of temporary absolute disqualification from public

office.

SECTION 10. IRR. - The Department of Transportation shall issue any
implementing rules, regulations, and other executive issuances necessary for
the efficient implementation of this Act within sixty (60) days from the

effectivity of this Act.

SECTION 11. Repealing Clause. - All laws, decrees, executive orders,
letters of instructions, rules and regulations, or parts thereof, which are
inconsistent with this Act are deemed repealed, amended, or modified

accordingly.
SECTION 12. Separability Clause. - If any provision of this act is
judicially declared invalid or unconstitutional, the remaining provisions of

this Act not affected thereby shall continue to be in full force and effect.

SECTION 13. Effectivity Clause. - This act shall take effect fifteen (15)

days following its publication in two (2) newspaper of general circulation.

Approved,