‘AEPRES,

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

SEVENTEENTH (17) CONGRESS
Second Regular Session

House Bill No. 7194

Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

EXPLANATORY NOTE

In March of last year, the Land Transportation Office (LTO) has
expressed during a joint Senate hearing that they lack proper
equipment to determine the road worthiness of public utility vehicles
or PUVs. As per the said office, while its mandate is to make sure that
PUVs are safe to commuters, a difficulty arises in implementing this
because they only have nine motor vehicle inspection systems for
checking all PUVs in the country.

To remedy this situation, it is high time that the private sector
be mobilized to contribute their expertise in support of the country’s
transportation development. The indispensable role of the private
sector is recognized in no less than our 1987 Constitution. Thus, it is
only but proper to tap them as a partner of the government in serving
the country. Thus, this bill aims to designate or give authority to the
private sector to determine the road-worthiness of public and private
vehicles in order to ease up the burden of the government and
increase the efficiency in the delivery of service to the commuting
public.

This measure shall basically form a contractual agreement
between the government and private sector, specifically aimed at
providing a more efficient and effective way to ensure the safety of
Filipino commuters, and the general public as well. This would
accelerate and ensure the full implementation of the abovementioned
mandate of LTO with possibly new approaches and better
management techniques that are at the disposal of the private sector.
Since the private sector has the financial capability to handle this


kind of large project, the currently resource-strapped LTO will have an
option to reallocate their funds to other equally important programs.

‘The participation of private sector in this endeavor also has
social benefits: 1) it helps in the empowerment of local contractors
and consultants and 2) it welcomes entrepreneurial development in
the country. And as already mentioned above, this will allow our
government agencies to plan their resources for better use elsewhere.

‘The private sector - consisting of various individual and
corporate enterprises all around the country - is perceived as a
competent and able sector which offers exciting alternatives and
opportunities in terms of servicing the transportation needs of the
public, ensuring rigorous risk analysis and a more tedious and more
meticulous process in determining the roadworthiness of our vehicles,
considering that it is comprised of many brains, funds and hands
working at the same time.

In sum, this bill seeks to address the on-going difficulty of the
LTO to fully ensure the roadworthiness of the vehicles due to its
limited financial and human resources. This bill offers the helping
hands of the private sector in order to fully implement the mandate of
the LTO despite its admitted limitations and constraints. Finally, this
bill is in keeping with the Senate committee's recommendation for
Land Transportation Office (LTO) to change its system of inspection
and issuance of professional drivers’ licenses.

ene c. Try,

ERIC L. OLIVAREZ


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

SEVENTEENTH (17t*) CONGRESS
Second Regular Session

House Bill No. 7194

Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

AN ACT DESIGNATING AUTHORITY TO THE PRIVATE SECTOR TO.
DETERMINE ROAD WORTHINESS OF PUBLIC AND PRIVATE
VEHICLES

Section 1. Short Title. This Act Shall be known as the “Private
Sector Determination of Road-Worthiness Act of 2018.”

Section 2. Definition of Terms.

Private Sector - The private sector is the part of a country's
economic system that is run by individuals and companies,
rather than the government. It encompasses all for-profit
businesses that are not owned or operated, partly or fully by
the government.

Private Assessors/Inspectors - are officially accredited and
registered qualified private entities, establishments or
individuals designated or assigned by the Land Transportation
Office (LTO) to inspect and determine the road worthiness of
every vehicle before its registration.


Roadworthiness - a property or ability of a car, bus, truck
or any kind of vehicle/automobile to be in a suitable operating
condition or meeting acceptable standards for safe driving and
transport of people, baggage or cargo in roads or streets, being
therefore street-legal.

Vehicles — any automobile that transports people or cargo,
and is classified by the proper authorities as such. For purposes
of this Act, vehicles shall include public utility vehicles or
privately-owned or operated vehicles.

Section 3. Designation of Authority to the Private Sector. The
Land Transportation Office is hereby empowered and authorized to
designate the determination and assessment of roadworthiness of
public or private vehicles in the country to the private sector.

Section 4. Accreditation of the Private Assessors. The Land
Transportation Office (LTO) shall come up with an efficient and quick
process of accreditation for private individuals and enterprises that
are desirous to be private assessors of the roadworthiness of vehicles.
In no case shall the private individuals or enterprises be allowed to
conduct the determination of the roadworthiness of vehicles, or any
part of the process thereof, without the proper accreditation from the
LTO. The LTO shall take into account the necessary expertise and
skills as part of the qualifications of the private assessors in the
issues of the accreditation papers/documents. The LTO shall provide
for any other qualification and disqualification, and other necessary
rules and regulations in relation to the aforementioned accreditation.

Section 5. Prohibited Acts. It shall be unlawful for any private
individual or enterprise to conduct the determination of the
roadworthiness of vehicles, or any part of the process thereof, without
the proper accreditation from the LTO, or without prior renewal of an
expired accreditation, as the case may be. It shall also be unlawful for
any member of the private sector to violate or circumvent any
provision of this law, and/or its Implementing Rules and Regulations.
Provided, that any member of the public sector or the government who
connives with a private sector, or who on his/her own act, conducts
business in contravention of this Act or its Implementing Rules and
Regulations shall also be held accountable, with a penalty higher in
degree.

Section 6. Accountability of Registered Assessor. The private
individual or enterprise officially accredited and registered as private
assessor shall be solidarily liable with the vehicle owner/s assessed,
for any road-related damage or injury caused by the latter to any
person, if it is found out that the private assessor is guilty of willful
negligence in performing its duty and did not properly assess the
roadworthiness of such vehicle.


Section 7. Implementing 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 8. Repealing Clause. All laws, presidential decrees,
letters of instructions, executive orders, rules and regulations insofar
as they are inconsistent with this Act, are hereby repealed or amended
as the case may be.

Section 9. 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 10. Effectivity. This Act shall take effect fifteen (15) days

after its complete publication in at least three (3) newspapers of
general circulation.

APPROVED.