HOUSEOF REPRESENTATIVES
RECENECD
pate:_10 AUG 2016

Republic of the Philippines
HOUSE OF REPRESENTATIVE
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

REGISTR WON UNIT

House BillNo. ZBL? | ai is ano wor x SERVICE

introduced by Representatives
Estrellita B. Suansing and Horacio P. Suansing, Jr.

EXPLANATORY NOTE

The Land Transportation Office (LTO) is the lead government agency mandated to
implement and enforce all land transportation laws, rules and regulations including, among
others, the registration of motor vehicles and the issuance of permits and licenses to motor
vehicle drivers. Under current laws and agency rules and regulation, all drivers’ licenses
(non-professional and professional) are valid for three (3) consecutive years reckoned from
the birthdate of the licensee, unless sooner revoked or suspended. However, if any holder of
a professional or non-professional driver's license has not committed any violation during the
three (3) year period, the said holder shall be entitled to a renewal of such license for a five
(5) year period."

It is quite unfortunate that for more than a year now, the LTO has been plagued with
a myriad of complaints from motor vehicle owners and drivers regarding its apparent inability
to issue both vehicle license plates and driver's license cards within a reasonable period of
time. To address the shortage of driver's license cards, the LTO is currently issuing validated
stamped receipts that serve as a professional driver's license.

The shortage of LTO license cards started in 2013 after the Commission on Audit
disallowed payments to a previous supplier, Amalgamated Motors Philippines, Inc. for lack of
a valid contract. Thereafter, a new supplier, Alicard Plastics Philippines, Inc., won the
bidding for the right to supply LTO license cards for 336.8 million. However, just a few
months after preliminary injunction against LTO ordering the latter to refrain from paying
Allcard under the terms of the driver's license supply contract. The Manila RTC was of the
view that there was no approved budget for the project denominated by the Department of
Transportation and Communication (DOTC) as procurement of driver's license cards. For
fear that the company might not get paid under the supply contract, Allcard stopped
supplying LTO with license cards resulting in a backlog in the issuance of license cards to
millions of motorists.

In order to allow the LTO to properly address its legal woes, improve its services and
promote efficiency, this bill seeks to amend Section 23 of Republic Act No. 4136, as
amended, by increasing the validity period of driver's licenses from three (3) years to five (5)

* Republic Act No. 4136, as amended by B.P. Big. 398. Land Transportation Office Administrative Order No.
AVT-2015-031.

2 “LTO exec fears delayed issuance of driver's license cards.” 20 October 2015,

http://www. philstar.com:8080/headlines/2015/10/30/1516361/ltoexec-fears-delayed-issuance-drivers-
license-cards


years reckoned from the birthdate of the licensee, without any condition. Extending the
validity of driver's license cards will ultimately lessen the cost both on the part of the
government and the motorists in general.

Furthermore, the public expects efficient delivery of services from the government. It
is for this reason that Congress enacted Republic Act No. 9485, otherwise known as the
Anti-Red Tape Act of 2007 (ARTA). ARTA was passed to promote transparency through the
adoption of simplified procedures that will reduce red tape and expedite transactions in
government. Minimizing the frequency of the public’s transactions with the LTO will definitely
translate to a dramatic reduction of red tape within the agency.

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

. wonaci7 SUANSING, JR.
1® District, Nueva Ecij 2" Digffict, Sultan Kudarat

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

2817

House Bill No.

introduced by Representatives
Estrellita B. Suansing and Horacio P. Suansing, Jr.

AN ACT
EXTENDING THE VALIDITY PERIOD OF A DRIVER’S LICENSE, AMENDING FOR THE
PURPOSE SECTION 23 OF REPUBLIC ACT NO. 4136, AS AMENDED, OTHERWISE
KNOWN AS THE “LAND TRANSPORTATION AND TRAFFIC CODE”

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

SECTION 1. Section 23 of Republic Act No, 4136, otherwise known as the ‘Land
Transportation and Traffic Code”, as amended, is hereby further amended to read as
follows:

“Sec. 23. Issuance of driver's license, fees and validity. — If, after
such examination the Director or his deputies find that the applicant
possesses the necessary qualification and proficiency in the operation of
motor vehicles, is able to read and write any of the official languages or a
major dialect and knows how to read and interpret various traffic signs,
signals and road markings, a professional or nonprofessional license may
be issued to such applicant upon payment of the fee prescribed in
accordance with law, but prior to the issuance of said license, the
applicant shall present himself in person and have his photograph taken
by the bureau. All driver's licenses issued shall be signed in the presence
of the Director or his deputies and shall bear, among others, the full
name, date of birth, height, weight, sex, color of eyes, blood type,
complete current address, right hand thumbprint of the licensee, license
number, and its date of issue and expiration.

“In the issuance of licenses, the Bureau shall use such process
or adopt such measure as will prevent any alteration or falsification of a
license or will enable the Bureau to detect any unauthorized license.

“Except for student permits and new licenses, all driver’s
licenses shall be valid for [three (3)] FIVE (5) consecutive years reckoned
from the birthdate of the licensee, unless sooner revoked or suspended.
[Provided, however, That subject to Section twenty-six hereof, any holder
of a professional or nonprofessional driver's license who has not

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committed any violation during the three (3) year period shall be entitle to
a renewal of such license for five-year period.

XXX.

SECTION 2. Implementing Rules and Regulations. - The Secretary of the
Department of Transportation, shall, upon the recommendation of the Land Transportation
Office Assistant Secretary, promulgate not later than thirty (30) days from the effectivity of
this Act the necessary rules and regulations for its effective implementation,

SECTION 3. Repealing Clause. ~ All laws, executive orders, decrees, instructions,
issuances, rules and regulations contrary or inconsistent with the provisions of this Act are
hereby likewise repealed or modified accordingly.

SECTION 4. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation

Approved,

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