HOUSE OF REPRE:

RECEIVED
02 AUG 2016

DATE:
TNE:

Republic of the Philippines by,
House of Representatives
Queson City, Metro Manila

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{ PCESTRATION UNIT
i LS AND INDEX SERVICE

Seventeenth Congress
First Regular Session

2235

House Bill No.

Introduced by HON. ROMEO M. ACOP

EXPLANATORY NOTE

The authority of the Department of Transportation (DOTr) over land
transportation is exercised by the Land Transportation Office (LTO) and covers,
among other things, registration of motor vehicles and consequent renewal of the
same thereafter.

Section 5 of Republic Act No. 4136, otherwise known as the ‘Land
Transportation and Traffic Code’, as amended by Batas Pambansa Big. 74,
mandates the annual registration of motor vehicles based on a registration scheme
promulgated by the LTO. Any registration of motor vehicles not renewed on or
before the date fixed by the LTO shall become delinquent and invalid.

Furthermore, Section 4 (d) [1] of RA 4136, as amended, empowers the
Assistant Secretary of the LTO, with the approval of the Secretary of Transportation
to issue rules and regulations prescribing the procedure for the registration of
motor vehicles. Thus, Administrative Order No. 010-2005 was issued providing for
the 3-year validity of the registration of brand new motor vehicles (original
registration).

‘A major concern in the aforementioned existing system of motor vehicle
registration, particularly the requirement for the annual renewal of registration of



motor vehicles, is the lack of sufficient LTO branches to handle the current volume
of transactions.

‘An examination of the demand for motor vehicles, both for brand new and
used, suggests an increasing trend in car sales resulting from increasing per capita
GDP, as well as competitive financing schemes available for the purchase of new
vehicles. The volume of cars is increasing, but the number of LTO branches where
one can bring his car to register is not increasing at the same time. In fact, with
the implementation of the three (3) year initial registration of motor vehicles
scheme, the volume of motor vehicle renewal registrations was drastically reduced
since most initial motor vehicle registrations are handled by district offices situated
in highly urbanized areas in the country. This situation indicates the desirability of
extending the one-year validity period of renewal registration to further ease the
backlog.

Moreover, there have been consistent reports that delay and corruption in
the issuance of original and renewal registrations of motor vehicles continue to
plague the process. Extending the period of validity of renewal registrations will
help lessen such incidents.

This bill seeks to amend Section 5 of RA 4136 and provide the statutory basis
for the 3-year period of validity of the original registration of motor vehicles and for
the extension of the period of validity of their renewal registration from one (1)
year to two (2) years. However, this bill shall continue to require the annual
inspection of motor vehicles by the LTO for the purpose of ensuring their
compliance with the emission standards set in Republic Act No. 8749, or the
Philippine Clean Air Act, and to ensure the road worthiness of motor vehicles.

Finally, concerns that a longer validity period of motor vehicle registrations
will result to lower government revenues hold no water as the registration /
renewal fees can just be adjusted accordingly by the LTO as provided by law.

For the foregoing reasons, the immediate consideration and approval of this
bill is earnestly urged.



Republic of the Philippines
House of Representatives
Queson City, Metto Manila
‘Seventeenth Congress

First Regular Session

House Bin No. 2295

Introduced by HON. ROMEO M. ACOP

AN ACT
PROVIDING FOR THE PERIODS OF VALIDITY
OF REGISTRATION OF MOTOR VEHICLES, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 4136, OTHERWISE KNOWN AS THE
“LAND TRANSPORTATION AND TRAFFIC CODE’

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

SECTION 1. Section 5 of Republic Act No. 4136, otherwise known as the
‘Land Transportation and Traffic Code’, as amended by Batas Pambansa Big.
74, is hereby further amended to read as follows :

Section 5. Compulsory registration of motor vehicles. — (a) All motor
vehicles and trailer of any type used or operated on or upon any highway of
the Philippines must be registered with the £Bureau-of Land Transpertation ]
LAND TRANSPORTATION OFFICE for the current year in accordance with
the provisions of this Act.

THE ORIGINAL REGISTRATION OF A MOTOR VEHICLE SHALL BE
VALID FOR A PERIOD OF THREE (3) YEARS. THE RENEWAL OF THE
ORIGINAL REGISTRATION OF THE SAME MOTOR VEHICLE SHALL BE


VALID FOR A PERIOD OF TWO (2), AND EVERY TWO (2) YEARS
THEREAFTER: PROVIDED, THAT THE MOTOR VEHICLE SHALL BE
SUBJECT TO ANNUAL INSPECTION BY THE LTO TO ENSURE
COMPLIANCE WITH THE EMISSION STANDARDS FOR MOTOR
VEHICLES IN ACCORDANCE WITH REPUBLIC ACT NO. 8749,
OTHERWISE KNOWN AS THE ‘PHILIPPINE CLEAN AIR ACT OF 1999’,
AND TO ENSURE ITS ROAD WORTHINESS.

(b) The dates of annual registration of motor vehicles shall be based on a
registration scheme to be prepared by the [Bureau-of Land—transpertation]
LAND TRANSPORTATION OFFICE subject to approval of the [Minister]
SECRETARY of Transportation fand—Communications ]. The scheme shall
Provide for a system that will distribute the registration of motor vehicles
equitably over different months in a calendar year. Said scheme and rates
shall not be changed more often than once every three (3) years, and only
upon due notice given to the public at least ninety (90) calendar days before
the effectivity of such registration scheme.

Any registration of motor vehicles not renewed or before the date fixed by
the [Bureau-oftand—transportation] LAND TRANSPORTATION OFFICE
shall become delinquent and invalid.

(c) xx000«

SECTION 2. All references to the ‘Bureau of Land Transportation’ or
‘Minister of Transportation and Communications’ in any other provision of
Republic Act Numbered Forty-one hundred thirty-six, as amended, shall be
automatically substituted with the words ‘Land Transportation Office’
and/or * Secretary of Transportation’, as the case may be.

SECTION 3. Implementing Rules and Regulations - The Secretary of
Transportation, upon the recommendation of the Land Transportation Office
Assistant Secretary, shall, within sixty (60) days from the effectivity of this
Act, promulgate the rules and regulations necessary for the effective
implementation of this Act.

SECTION 4. Repealing Clause. - All existing laws, orders, decrees, rules
and regulations or parts thereof inconsistent with the provisions of this Act
are hereby repealed or modified accordingly.


SECTION 5. Effectivity. - This Act shall take effect after fifteen (15) days
from its publication in at least two (2) national newspapers of general
circulation.

Approved.