Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH (17) CONGRESS
Second Regular Session

House Bill no.7040

Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

EXPLANATORY NOTE

The Land Transportation Office (LTO), by virtue of LTO memorandum
circular 575-2005, has set a three-year validity/effectivity of the registration of
brand new vehicles in the Philippines. The said memorandum circular subjects
all brand new vehicles, or vehicles that are new and unregistered; motor vehicles
manufactured, assembled, imported, distributed and/or sold regardless of
classification by corporations or companies accredited by the Land
Transportation Office (LTO); brand new motor vehicles regardless of
classification; and motorcycles with engine displacement of above 200 cc, under
the aforementioned three-year registration scheme.

The current reality, however, makes such three-year effectivity of
registration impractical both for the government and the public. Presently, the
volume of cars is increasing at an enormous and rapid rate. On the other hand,
the number of Land Transportation Office branches where one can bring their
cars to register is not increasing at the same time. This situation contributes to
the problem of bureaucracy and promotes inefficiency. It also proves to be greatly
inconvenient to the people who wish to have their vehicles registered.

In light of the foregoing, extending the validity of the registration of new
cars from three years to five years is a logical and pragmatic solution to the
existing disproportionality between the number of cars that need to be registered


and the number of LTO Offices that could attend to such task. Moreover, this
measure will ease the burden of motorists who have to line up at the LTO offices
every year to renew their car registration.

In other words, this proposition presents a win-win situation to both
parties - for the government which is mandated to regulate and render the
service of registering the vehicles, and the public motorists who are the end-
users of the aforementioned service and who are mandated to abide by the
regulation set by the Land Transportation Office.

This Act is consistent with the objective of cutting, or minimizing, red tape
in government which has been one of the main programs of the present
administration. It is for this reason that this Act is hoped to be passed and
enacted.

a ©
ERIC L. OLIV:


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City
SEVENTEENTH (17t*) CONGRESS
Second Regular Session

7040

House Bill No.

Introduced By REPRESENTATIVE ERIC L. OLIVAREZ

AN ACT EXTENDING THE EFFECTIVITY OF REGISTRATION OF BRAND
NEW PRIVATE VEHICLES FROM THREE YEARS TO FIVE YEARS.

Section 1. Short Title. This Act shall be known as the Five-Year
Registration Validity of Brand New Vehicles Act of 2017.

Section 2. Coverage. This Act shall apply to all brand new vehicles, or
vehicles that are new and unregistered; motor vehicles manufactured,
assembled, imported, distributed and/or sold regardless of classification by
corporations or companies accredited by the Land Transportation Office (LTO);
brand new motor vehicles regardless of classification; and motorcycles with
engine displacement of above 200 ce.

Section 3. Extension of Validity of Registration of Brand New
Vehicles. The registration of brand new vehicles, or vehicles that are new and
unregistered; motor vehicles manufactured, assembled, imported, distributed
and /or sold regardless of classification by corporations or companies accredited
by the Land Transportation Office (LTO); brand new motor vehicles regardless of
classification; and motorcycles with engine displacement of above 200 cc, shall
now be effective for five years from its registration date. As such, renewal of
registration of the aforementioned vehicles shall only be required five years from
its official registration date.

Section 4. Renewal of Registration. Upon the expiration of the five-year
effectivity period, registration of the brand new cars/vehicles covered by this Act


shall be renewable every three years thereafter provided they are not under a
franchise or are not operating as public utility, or for-hire through an alternative
technology or application.

The registration of brand new vehicles operating as public utility, or for-
hire through an alternative technology or application shall be renewed annually
and shall be subjected to annual inspection to ensure public safety.

Section 5. Revokation of Registration or Disenfranchisement. The
provisions of this Act shall not mean unconditional and absolute preservation of
the registration of the vehicle for a period of five years. Serious violations of traffic
rules and regulations and/or other related offenses to be determined by the Land
‘Transportation Office (LTO) may be a ground for the revocation of registration or
disenfranchisement of the vehicle at any time even before the expiration of five
years, among other penalties to be determined by the aforementioned Office.

Section 6. Rules and Regulations. The Land Transportation Office (LTO)
shall promulgate the necessary Implementing Rules and Regulations within
ninety (90) days from the effectivity of this Act.

Section 7. Repealing Clause. ~ All laws, presidential decrees, letters of
instructions, executive orders, memorandum circulars, rules and regulations
insofar as they are inconsistent with this Act, are hereby repealed or amended
as the case may be.

Section 8. Separability Clause. - In the event that any provision of this
Act or any portion thereof is declared unconstitutional by a competent court, the
other provisions shall not be affected thereby and shall remain valid and
enforceable.

Section 9. Effectivity Clause. - This Act shall take effect fifteen (15) days
after its complete publication in at least three (3) newspapers of general
circulation.

APPROVED.