LTO Memorandum Circular No. 2021-2284 Revised Rules and Regulations on the Accreditation, Supervision, and Control of Driving Institutions, and the Standardization of Driver Education (2024)

September 16, 2021

LTO MEMORANDUM CIRCULAR NO. 2021-2284

Pursuant to the provisions of Executive Order No. 248, dated 14 July 1970, and in consonance with the Republic Act No. 4136, as amended, otherwise known as the Land Transportation and Traffic Code, and in conformity with the provisions of Republic Act No. 10930 which mandates the establishment of stricter rules for the issuance of driver's license, the following revised rules and regulations are hereby promulgated to improve the quality of driver's education and to ensure that driver's licenses are issued only to deserving applicants with sufficient driving skills and knowledge on road safety and proper road courtesy.

ARTICLE I

General Provisions

SECTION 1.Objectives. —

This Memorandum Circular shall have the following objectives:

A.To establish an accreditation system that ensures compliance of driving institutions, such as driving schools and Driving Enhancement Program Training Centers, with the prescribed driver education standards which include driving instructor's qualifications, physical sites and facilities, equipment, materials, and other similar requirements prior to the issuance of an authority to offer or undertake driver education programs;

B.To ensure uniformity of the driver education course components, including topics of instruction and minimum time requirements, in all accredited driving institutions;

C.To raise the standard of instruction and to develop safety consciousness and positive driving attitudes with the view of minimizing the incidence of road crashes; and

D.To supplement, clarify and amend certain provisions of Memorandum Circular No. 2019-2176, and to include recently issued rules and regulations in relation to the operation of driving institutions, in order to ensure the efficient implementation of the same.

SECTION 2.Scope and Coverage. —

These revised rules and regulations shall cover the accreditation, control, and supervision of driving institutions and their instructors. In addition, these shall govern the standards for the following courses of instruction, particularly:

A.Theoretical Driving Course;

B.Practical Driving Course; and

C.Driving Enhancement Program.

SECTION 3.Definition of Terms. —

For purposes of this Memorandum Circular and as used herein, the following definitions are hereby adopted:

Assistant Secretary — Chief of the Land Transportation Office (LTO)

Driving Institution(institution for brevity) — any agency, organization, business entity, private or public/government, engaged in the conduct of the LTO's courses of instruction for the education of the drivers

1.Driving School — a private educational institution, duly accredited by LTO, which is established, organized, and authorized to engage in the conduct of lectures on Theoretical and Practical Driving Courses. It may refer to the main school/office or any of its branches. For this Memorandum Circular, driving school branches shall be treated as entities distinct and separate from their main office and shall be subjected to the same treatment as any other driving school.

2.Drivers Education Center (DEC) — the government driving institution, operated by the LTO, established in every region/province to offer courses of instruction of LTO for the education of drivers.

3.DEP Training Center — an educational institution duly accredited by the LTO to conduct the lectures on Driving Enhancement Program.

4.TESDA Technology Institutions (TTIs) — the government training centers operated by the Technical Education and Skills Development Authority (TESDA) with Unified TVET Program Registration Accreditation System (UTPRAS)-registered program in Driving NC II and Driving NC III, to conduct lectures on Developed Competency-based Curriculum on Driving NC II and Driving NC III:

a.Driving NC II — TESDA certificate recognized as the equivalent of Practical Driving Course for DL Code B, B1, and B2 (Refer to the Supplemental IRR of Republic Act No. 10930 Table 1 Driver's License Code and Its Equivalent Restriction Codes for the complete definition of DL Codes)

b.Driving NC III — TESDA certificate recognized as the equivalent of Practical Driving Course for DL Code BE, C, CE, and D (Refer to the Supplemental IRR of Republic Act No. 10930 Table 1 Driver's License Code and Its Equivalent Restriction Codes for the complete definition of DL Codes)

i.Driving (Passenger Bus/Straight Truck) NC II — qualification consists of competencies that a person must achieve to drive/operate buses/straight trucks classified under LTO restriction codes 3 up to 5 (DL Code C and D) on highways; transport passengers and/or heavy goods, liquids and materials over specified long or short distances; comply with local traffic rules/regulations and ordinances and perform minor repairs on the assigned vehicle.

ii.Driving (Articulated Vehicle) NC III — qualification consists of competencies that a person must achieve to drive/operate upon highways motor road vehicles classified under LTO restriction codes 6 up to 8 (DL Code BE and CE); transport heavy goods, liquids, and materials over specified long or short distances; comply with local traffic rules/regulations and ordinances and perform minor repairs on the assigned vehicle.

5.TESDA Technical Vocational Institutions (TVIs) — TESDA private training centers with Unified TVET Program Registration Accreditation System (UTPRAS)-registered program in Driving NC II and Driving NC III, duly accredited by the LTO, as a driving school, to conduct lectures on Developed Competency-based Curriculum on Driving NC II, and Driving NC III. For this Memorandum Circular, TVI branches shall be treated as entities distinct and separate from their main office and shall be subjected to the same treatment as any other TVIs.

Developed Competency-based Curriculum on Driving NCII — the enhanced module of TESDA on Driving NC II where the LTO Theoretical and Practical Driving Course have been incorporated to.

Theoretical Driving Course (TDC) — the minimum of fifteen (15)-hour theoretical instruction designed by the LTO as a mandatory requirement for the application of Student-driver's Permit.

Practical Driving Course (PDC) — the minimum of eight (8)-hour practical instruction designed by the LTO as a mandatory requirement for the application of non-professional driver's license and additional driver's license codes.

Driving Enhancement Program (DEP) — the seminar designed by the LTO for driver's license holders that covers road safety and land transportation laws, rules, and regulations. It includes the Driver's Re-orientation Course during the renewal of their licenses under Section 14 of the Implementing Rules and Regulations (IRR) of the Republic Act No. 10930, the Intervention Program as provided under Section 15 of the said IRR, and the Comprehensive Driver Education under the Section 27 thereof.

Land Transportation Management System (LTMS) — a web-based integrated application that consists of driver's licensing system (DLS), law enforcement and traffic adjudication system (LETAS), motor vehicle registration system (MVRS), revenue collection system (RCS), executive information system (EIS) and a front-end system LTO public portal with online appointment/booking features. The LTMS application is secured by advanced biometric technology.

Driver's License — the authority in the form prescribed by the LTO granted to a person to operate a motor vehicle that is either non-professional or professional driver's license.

Student-driver — a person enrolled in a driving school, DEC, TTI, or accredited TVI undertaking prescribed courses of instruction to operate a motor vehicle.

Student-driver's Permit (SP) — the authority valid for one (1) year embodied in a form prescribed by the LTO granted to a person who desires to learn to operate a motor vehicle when accompanied by a duly licensed driver possessing a driver's license with the appropriate restrictions/driver's license code/s for the type of motor vehicle to be operated by the student-driver.

ARTICLE II

Courses of Instruction

SECTION 4.Conduct of Theoretical Driving Course (TDC). —

A Student-driver's Permit shall only be issued upon completion of a mandatory theoretical driving course to be conducted by LTO or its duly accredited driving institution for at least fifteen (15) hours, and shall be completed within two (2) years from the start of the course. The course outline for the TDC is attached herein as Annex A.

An up-to-date version of the TDC module shall only be downloaded from a single website by the driving institutions nationwide for uniform implementation.

A.The classroom instruction shall be comprised of the following topics/fields of study:

1.Background/evolution of land transportation and its role in development;

2.Basic organization and functions of LTO;

3.Driver's license and motor vehicle registration requirements and processes;

4.Traffic rules and regulations including traffic signs, signals, pavement, markings, and road right of way;

5.Special laws and administrative issuances related to Land Transportation;

6.Hazard scanning and recognition, and road crash risk reduction;

7.Functions of automotive assemblies and accessories;

8.co*ckpit drill and driving maneuvers;

9.Parking techniques such as the three-point turn, parallel, reverse, and angle parking;

10.Fuel conservation tips and techniques;

11.Vehicle safety checks and basic troubleshooting cum practicum;

12.Road courtesy, discipline and defensive driving practices; and

13.Detailed topics/concepts for the safe operation of motorcycles and light motor vehicles.

B.The driving institution shall enroll the details of the client to the LTO System using the LTMS Client ID to determine the starting date of the client's TDC. The applicant shall also need to register his/her biometrics before and after every session for attendance purposes.

C.The applicant shall need to pass the exam administered after every session. After the completion of the 15-hour theoretical driving course and passing the third and final examination, the applicant shall then be issued a TDC Certificate of Completion. The final examination shall consist of 120 questions with an 80% passing score. Applicants who have failed the final examination may retake the same at the discretion of the driving institution. Regardless of the learning modality, the final examination shall be taken personally by the applicants in the authorized classroom of the driving institution.

D.The applicant must obtain at least 80% in the validation test conducted at the LTO District Office, Driver's License Renewal Office (DLRO), Licensing Center, and other authorized offices of the LTO prior to the issuance of a Student-driver's Permit.

E.Face-to-face TDC

1.Driving institutions shall conduct the minimum 15-hour TDC in three (3) days, one session per day. However, DECs may adopt and conduct the modified two (2) days TDC with the administration of two (2) sets of examination and with an evaluation mechanism.

2.Theoretical instruction shall only be conducted inside the authorized classroom of the accredited driving institutions. In no case shall a driving institution be allowed to conduct a lecture on any component of the TDC outside the area of their accreditation or their province/geographic area of responsibility (GAOR).

F.Online TDC

1.Driving institutions may conduct the TDC online provided that the school avails the services of an accredited Online TDC Provider, in compliance with Memorandum Circular No. 2021-2265 or the Guidelines on the Accreditation of Online Theoretical Driving Course (OTDC) Providers, and other rules and regulations set by the Technical Working Group (TWG) for Online TDC.

2.Driving Schools may also be authorized to conduct an Online TDC using their online platform following the guidelines and procedure as set by the TWG.

SECTION 5.Conduct of Practical Driving Course (PDC). —

A.Practical instruction shall cover safe driving techniques through different road gradients and conditions, densities of traffic, and weather conditions.

B.The practical driving instructions shall not be less than eight (8) hours per driver's license code applied for. The 8-Hour PDC for motorcycles (DL Code A and A1) may be conducted in one (1) day, provided that the student-driver has proven to have already acquired the knowledge based on the assessment by a practical driving instructor. The course outline for the PDC is attached herein as Annex B.

C.Driving schools may be deputized by the LTO to conduct a practical driving test, including the operation of Special Purpose Vehicle, depending on the performance evaluation of the previous accreditation period. The practical driving test shall be credited to the application for a driver's license.

SECTION 6.Conduct of Driving Enhancement Program (DEP). —

A.Face-to-face DEP

The DEP shall be conducted in accordance with the following provisions of the IRR of R.A. No. 10930:

1.Comprehensive Driver's Education

Section 27 of the IRR of R.A. No. 10930 — first renewal of the driver's license with five-year validity

Holders of PDL and NPDL are required to undergo the mandatory Comprehensive Driver's Education for the first renewal of 5-year validity.

See attached Annex C.

2.Driver's Reorientation Course

See attached Annex D.

a.Section 14 of the IRR of R.A. No. 10930

-All applicants for the renewal of the driver's license who has accumulated at least five (5) demerit points shall undergo a driver's reorientation course to be conducted by LTO or a duly accredited service provider.

-In addition to the required driver's reorientation course, a driver who has ten (10) or more total demerit points must pass the theoretical examination before he/she may be allowed to renew his/her driver's license.

b.Section 15 of the IRR of R.A. No. 10930 Intervention Program

-A licensee shall undergo the Intervention Program for every ten (10) demerit points during the validity of the driver's license.

-A driver who has committed the same violation at least three (3) times during the validity of his/her driver's license shall also undergo the Intervention Program.

B.Conduct of Online DEP

The DEP may be conducted online following the rules and regulations set by the TWG on Online DEP. Meanwhile, the LTO shall maintain an E-Learning which shall provide free online Comprehensive Driver's Education.

C.DEP Examination

After the lectures of DEP, a post-examination shall be administered to assess the applicants' knowledge on the topics contained in the DEP learning modules. Regardless of the learning modality, the applicants shall need to pass the random 25-question exam which was generated from the bank of questions. The passing score for such an examination shall be 80%. For applicants who took the DEP in driving institutions, the post-test shall be administered in these institutions. Applicants who have failed the exam may do the retake on the same day.

SECTION 7.Memorandum of Agreement (MOA) between LTO and TESDA. —

In compliance with the MOA signed by LTO and TESDA dated 12 March 2021, TESDA Technology Institutions (TTIs) and its assessors shall be recognized as an equivalent of LTO Driver's Education Centers (DECs) and DEC Lecturers, which will offer lectures on TDC and PDC.

TTIs shall:

1.Submit a copy of the Official Receipts and Certificates of Registration (OR/CR) of the vehicles to be used for practical instruction;

2.Have vehicles to be used, which are modified to include a separate brake pedal for the instructors, and be subjected for inspection by LTO Regional Accreditation Committee (RAC).

TTIs Assessors shall:

1.Undergo a mandatory Trainer's Training from the LTO with regards to the lecture of TDC;

2.Pass the written examination to be conducted by the LTO Regional Offices;

3.Submit a copy of valid Professional Driver's License;

4.At least 23 years old;

5.Have no apprehension from the last twelve (12) months prior to their enrollment to the LTO System; and

6.Submit the NTTC in Driving and Automotive Servicing.

Upon compliance with the above requirements, TTIs and Assessors shall be enrolled in the LTO System to be able to upload Certificates. Once enrolled, TTIs may now conduct the modules of TDC and PDC which are incorporated in the Driving NC II of TESDA. With this, TESDA shall issue a Certificate of Completion for the TDC and Driving NC II in lieu of PDC.

TESDA Technical Vocational Institutions (TVIs), on the other hand, shall undergo the process of accreditation specified under these revised rules and regulations.

This provision shall be without prejudice to any future agreement between the LTO and TESDA for TTIs and/or TVIs to conduct the DEP.

ARTICLE III

Accreditation of Driving Institutions

SECTION 8.Classification of Driving Schools. —

A.New Driving Schools — Any person or group of persons, natural or juridical, who intends to establish and operate a driving school, shall file with the Regional Director concerned, an application, in a form prescribed by LTO (Annex N), containing prescribed information and showing compliance with the standard requirements of this Memorandum Circular. All applications shall be forwarded to the Central Office Committee on Accreditation of Driving Schools for review, and recommendation to the Assistant Secretary.

B.Existing Driving Schools — Driving schools that have already been established and operating and which have previously been issued a certificate to operate or provisional permit shall be given two (2) months within which to comply with the standard requirements of this Memorandum Circular.

C.Driving School Kiosks in malls or registration offices may be established for marketing and enrollment purposes only, and shall not be subjected to inspection and enrollment in the LTO System.

SECTION 9.Documentary Requirements. —

A.For new driving school applicants:

1.For single proprietorship, the business name registration from the Department of Trade and Industry (DTI);

2.For partnership or corporation, the business name registration and other documentary requirements by the Securities and Exchange Commission as prerequisites to their establishment, organization, and operation;

3.Business Permit;

4.Certificate of Registration from the Bureau of Internal Revenue;

5.Sworn statement with documentary evidence of the adequacy of funds for annual operating expenses; and

6.Bank certificate or Credit Line of Three Million Pesos (P3,000,000.00) in the name of the owner of driving school-applicant, in the case of a sole proprietorship, or in the name of partnership or corporation, if applicable.

Upon receipt of an application to establish a driving school, the Assistant Secretary, through the Committee on Accreditation, shall verify the correctness of the information contained in the application forwarded by the Regional Office concerned.

B.For existing driving schools:

1.An audited financial statement prepared by a certified public accountant;

2.Business Permit;

3.Certificate of Registration from the Bureau of Internal Revenue;

4.List of accredited instructors with their driver's license number and other pertinent qualifications.

SECTION 10.Facilities and Equipment. —

A.Maneuvering Site

1.The driving school must provide a maneuvering site where students undertake in-car but off-highway driving lessons, including the development of maneuvering dexterity, prior to major highway driving lessons. In case the designated maneuvering site is public property, it must have a written permit from the local government unit concerned.

2.The dimension of the maneuvering site for Light PDC shall be at least fourteen (14) meters in length and width.

3.For Driving Institutions applying for accreditation to lecture the PDC for motorcycles, a motorcycle test track with an area of at least three hundred (300) square meters with a complete obstacle course must be provided.

4.Schools are encouraged to establish a common driving test track complete with standard traffic signs and pavement markings. Driving schools must show proof of their agreement to use and maintain a common driving test track.

B.Classroom (Main Office and Branches)

1.The minimum dimension of a classroom must not be less than twenty-four (24) square meters. Provided that, a space of not less than one and a half (1.5) square meters shall be provided for every student to ensure comfort. Provided further that, the maximum class size shall be forty (40) students per classroom.

2.Classrooms must ensure that ergonomics, anthropometry, thermal comfort, ventilation, illumination, and acoustics are considered in the overall layout and design of the classroom.

3.Each classroom must have audio-visual materials and display, updated set of traffic signs, signals, and pavement markings as described in the manual of Department Works and Highways (DPWH) and other land transportation regulatory agencies. The lateral dimensions or diameter of each sign must not be less than six (6) inches.

4.For students intending to apply for a light vehicle professional driver's license, the school shall have in the classrooms automotive components and parts assemblies which may be used as aids in teaching basic automotive servicing.

5.All classrooms used for theoretical instruction must be equipped with closed-circuit television (CCTV) system connected with the built-in date and time recording features, with specs of at least 5MP.

6.All theoretical instructions shall be recorded. Recordings must be:

a.Stored in an external hard drive or similar storage devices;

b.Kept for at least six (6) months from the date it was captured; and

c.Always available for inspection by the RACs and/or CO Committee on Accreditation of Driving Schools, at any possible time during the operation of the driving institution.

7.The school shall maintain student records for monitoring and evaluation. Attendance sheets shall be provided and must be always made available by the driving institutions for this purpose.

C.Library

Driving school library facilities must have the following reference and reading materials:

1.Republic Act No. 4136, as amended and R.A. No. 10930 — An Act Rationalizing and Strengthening the Policy Regarding Driver's License by Extending the Validity Period of Driver's Licenses and Penalizing Acts in Violation of its Issuance and Application;

2.Letters of Instructions, Administrative Orders/Memorandum Circulars of the Department of Transportation, Land Transportation Office, Land Transportation Franchising and Regulatory Board, and city/municipal ordinances relative to land transportation and traffic rules and regulations;

3.Latest edition of the Filipino Driver's Manual, which must be provided to every student-driver; defensive driving manual, and automotive mechanics manual;

4.Special laws relative to land transportation, such as:

a.R.A. 8749 — Philippine Clean Air Act of 1999

b.R.A. 8750 — Seat Belts Use Act of 1999

c.R.A. 8794 — An Act Imposing a Motor Vehicle User's Charge on All Types of Motor Vehicles and for Other Purposes

d.R.A. 10054 — Motorcycle Helmet Act of 2009

e.R.A. 10586 — Anti-Drunk and Drugged Driving Act of 2013

f.R.A. 10666 — Children's Safety on Motorcycle Act of 2015

g.R.A. 10913 — Anti-Distracted Driving Act

h.R.A. 10916 — Road Speed Limiter Act of 2016

i.R.A. 11229 — Child Safety in Motor Vehicle's Act

j.R.A. 11235 — Motorcycle Crime Prevention Act; and

5.Other road safety manuals and materials.

D.Motor Vehicles

1.Driving schools must comply with the motor vehicle requirement corresponding to the DL Code and vehicle category as defined in the Supplemental IRR of R.A. No. 10930, applied for by each branch.

2.Driving institutions may opt to operate PDC for either Motorcycle, Light Vehicles, or both.

(Refer to the Supplemental IRR of Republic Act No. 10930 Table 1 Driver's License Code and Its Equivalent Restriction Codes for the complete definition of DL Codes)

3.All motorcycles and light vehicles to be used for practical instruction for DL Codes A, A1, B, B1, B2, and BE shall not be more than seven (7) years old.

4.All vehicles must be roadworthy, operational, equipped with front and rear-view dashboard recording camera, and currently registered in the name of the driving school proprietor, partnership, or corporation, whichever is applicable.

5.All vehicles used for practical instruction must be modified to include a separate brake pedal for the instructor.

6.All motor vehicles used in the practical instruction shall bear markings "CAUTION — STUDENT DRIVER" in white capital letters at least eight (8) inches in height with a red background, and readable from the back of the motor vehicle.

SECTION 11.Operation of Heavy Vehicles. —

Driving schools for heavy vehicles shall also comply with the following requirements:

A.The dimension of the maneuvering site shall be at least thirty-one (31) meters in length and thirty-one (31) meters in width.

B.The driving school must have at least one (1) heavy motor vehicle (e.g., bus, straight truck, or articulated), the age of which shall not exceed ten (10) years old. These heavy vehicles may be leased provided that a notarized lease agreement shall be submitted upon application.

C.The school must submit a detailed course syllabus for the operation of heavy vehicles.

SECTION 12.Accreditation of DEP Training Centers. —

A.DEP Training Center applicants not currently operating as driving schools shall conform to the requirements for accreditation of Driving Schools specified in these revised rules and regulations except for the motor vehicle and maneuvering site requirements and the bank certificate or credit line requirement. Instead, they are only required to maintain a bank certificate or credit line of One Million Pesos (P1,000,000.00). See attached AnnexJ for Application Form.

B.Existing driving schools accredited by the LTO shall not need to undergo the process of accreditation of DEP Training Center and shall automatically be allowed to lecture the standard modules of the DEP, provided that they file an application to the RAC for DEP and comply with the requirement of at least one (1) additional classroom and at least one (1) theoretical instructor intended only for the lecture of DEP.

SECTION 13.Accreditation Fee. —

The driving school shall pay a non-refundable accreditation fee of Five Thousand Pesos (P5,000.00) upon submission of the accomplished form and other documentary requirements. A separate accreditation fee of Five Thousand Pesos (P5,000.00) shall be collected from entities applying to be accredited as a DEPTC.

SECTION 14.Issuance of Accreditation and Provisional Permits. —

A.All applications for accreditation approved by the Assistant Secretary shall be valid for two (2) years;

B.Pending the approval of the driving institution's application for accreditation, a provisional permit (Annex M) valid for two (2) months shall be given to a driving school provided it has complied with the following minimum requirements:

1.complete documentary requirements under Section 9;

2.a maneuvering site, compliant with the specifications under Sections 10 (A) (1) or 11 (a), if applicable;

3.at least one (1) classroom, compliant with the specifications under Section 10 (B);

4.at least one (1) motor vehicle for every MV type applied for, compliant with the specifications under Section 10 (D); and

5.payment of the accreditation fee under Section 13.

SECTION 15.Renewal of Accreditation. —

Renewal of accreditation shall be submitted sixty (60) days prior to the expiration of the certificate. Upon renewal application, a fee of Three Thousand Pesos (P3,000.00) shall be paid for every accreditation.

The authority of the driving institution to operate shall be automatically canceled upon failure to submit a duly accomplished application and failure to pay the proper fee on or before the expiration of its accreditation. A late renewal fee amounting to Five Thousand Pesos (P5,000.00) shall be collected for renewal applications that are not filed on time.

SECTION 16.Certificates of Accreditation. —

All approved new applications of driving institutions and instructors shall be forwarded to the Traffic Safety Division (TSD), LTO Central Office, through a Summary Report indicating the complete compliance of the driving institutions and instructors, signed by the Regional Accreditation Committee (RAC) Chairperson and certified by the Regional Director, for the issuance of Certificate of Accreditation to be signed by the Assistant Secretary.

For all renewal applications, the certificate of accreditation shall be for the approval of the Regional Director.

See attached Annexes I, J, K, and L as sample templates for the Certificate of Accreditation.

SECTION 17.Accreditation Committees. —

There shall be constituted Accreditation Committees at the Central Office and Regional Office level for the accreditation and registration of driving institutions, instructors, and administrators.

The Central Office (CO) Accreditation Committee and Regional Accreditation Committee (RAC) shall be tasked to perform the functions and responsibilities relative thereto, particularly:

A.Accreditation and Registration of Driving Institutions

The CO Accreditation Committee and the RAC shall perform the following at the concerned level, to wit:

1.Receive and evaluate the requirements for the accreditation of driving institutions;

2.Conduct the required site inspection of driving institutions;

3.Upon a favorable evaluation of the applicant-driving institution, register the former to the LTO System;

4.The RAC shall recommend to the Regional Director, the issuance of a Provisional Permit valid for two (2) months to the applicant-driving institution upon its compliance to the minimum requirements and after registration in the system;

5.The RAC and CO Accreditation Committee shall recommend to the Assistant Secretary the issuance of Certificate of Accreditation upon complete review and assessment by all concerned, in accordance with the process and requirements indicated in Sections 9, 10, 11, and 12 hereof; and

6.Release the approved Certificate of Accreditation to the concerned driving institutions.

B.Nomination of Regional Proctors and their Responsibilities

As a requirement to decentralize the registration of Instructors, the RACs shall first nominate and have their respective Proctor/s registered in the LTO System. The Regional Proctors shall perform the following which is detailed in Section 19.D:

1.Securing the examination questionnaires from the TSD;

2.Evaluating the Instructor requirements;

3.Administering Instructor Qualifying Examinations; and

4.Encoding the scores to the LTO Proctor facility.

C.Accreditation and Registration of Driving Instructors

At their respective levels, the CO Accreditation and the RAC shall perform the following:

1.Receive the requirements of an applicant for driving instructor for evaluation;

2.Endorse the requirements to the CO or Regional Proctor for the scheduling of examinations. The instructors' theoretical examinations shall be conducted in accordance with the schedules set herein under Section 19.D. or as needed;

3.Receive the Qualifying Examination Certificate submitted by the Proctor to complete the registration requirements;

4.CO/TSD or RAC shall conduct the mandatory Trainer's Training for the lecturer of TDC; and

5.Register the driving instructor's pertinent personal information details and biometrics in the LTO System.

D.Registration of Driving Institution Administrators

1.The CO Accreditation Committee or the RAC shall accept for processing the requirements for the registration of driving institution administrators; and

2.Using the LTO System, the CO Accreditation Committee or the RAC shall register the pertinent personal information details and the biometrics of the driving institution administrators.

E.Monitoring of Driving Institutions and Instructors

1.The CO Accreditation Committee or the RAC shall have supervisory and visitorial powers over driving institutions. The RAC shall monitor the actual operations of driving institutions based on actual inspection and documents submitted.

2.The RAC shall recommend to the Regional Director the issuance of a show-cause order and the imposition of preventive suspension to driving institutions charged with violations of this Memorandum Circular.

3.The RAC shall conduct hearings, require the submission of a supplemental answer, and draft resolutions in relation to cases of violations of this Memorandum Circular for approval by the Regional Director.

F.Other Functions and Responsibilities

1.Prior to renewal of accreditation, the Accreditation Committee at the concerned level shall conduct a mandatory inspection and shall review and evaluate the overall performance of the driving institution.

2.The CO Accreditation Committee or the RAC shall require the submission of a drug abuse prevention program in the workplace and related reports.

3.The CO/TSD shall continuously provide updated modules for TDC and DEP for use of the driving institutions, whenever there are new issuances of laws, rules, and regulations concerning driving and road safety.

G.A composite Audit Team comprising of members from the Central Office and Regional Offices of the LTO shall be created to conduct a random and periodic audit of the driving institutions and ensure that they comply with the existing laws, rules, and regulations.

SECTION 18.Reportorial Requirements. —

A.Driving institutions are required to submit the following reports to the RAC within five (5) days after every reporting period as indicated below:

1.List of graduates for the month and the dates of their attendance;

2.Summary of transactions for the month;

a.TDC

b.PDC per DL Code

c.DEP for Non-Professional

d.DEP for Professional

3.List of scholarship recipients for the month;

4.Semestral report on drug tests conducted; and

5.All other reports as may be required by the RAC.

B.Moreover, the RAC must be informed of any changes in the ownership and management of the institution, personnel complement, facilities, and equipment, or any material change that affects the operations of the driving institution five (5) days before effecting such changes.

ARTICLE IV

Accreditation of Instructors

SECTION 19.Driving School and DEPTC Instructors. —

A.Accreditation Requirements

1.All driving instructors must be duly accredited by the LTO.

2.The documentary requirements for accreditation shall be as follows:

a.A certified true copy of diploma and appropriate certificates of training;

b.Copy of valid professional driver's license;

c.Original Certificate of neuropsychiatric test result;

d.Original copy of a valid certification from a DOH accredited drug testing center that applicant has undergone a mandatory drug test, and that he/she is free from the use of dangerous drugs; and

e.Copy of valid National Bureau of Investigation (NBI) or Police Clearance.

3.There shall be at least one (1) theoretical instructor, and one (1) practical driving instructor registered per driving school branch.

4.The instructor's accreditation shall be restricted to the driving school branch where he/she is affiliated. Instructors are not allowed in any circ*mstances to upload a Certificate of Completion through the uploading facility of another branch.

5.An accreditation fee of One Thousand Pesos (P1,000.00) shall be paid by the applicant upon submission of his/her application (Annex O) and requirements, and after passing the written examination.

6.The instructor's accreditation is valid for two (2) years.

7.Prior to the renewal of accreditation, the driving instructor shall be required to attend a retooling program. A renewal fee of Five Hundred Pesos (P500.00) shall be collected.

8.The certificate of accreditation for instructors shall be issued by the LTO.

9.Accredited instructors must wear an appropriate company uniform and identification card while on duty while conducting classes or practical driving lessons. The certificate of accreditation issued by the LTO must also be exhibited at all times.

B.General Qualifications of Driving School and DEPTC Instructors

1.Must be at least twenty-three (23) years of age;

2.Must be a graduate of any four-year degree course or automotive vocational training course or a holder of a TESDA National TVET Trainer's Certificate (NTTC). If the applicant is a college undergraduate, he/she must have completed at least two-year studies in college and must be a holder of the following:

a.TESDA Trainers Methodology/Trainer's Training;

b.NC II in Driving; and

c.NC I in Automotive Servicing

3.Must be a holder of a valid professional driver's license allowed to operate a motor vehicle with manual transmission. The DL Code must also correspond to the vehicle category being offered by his/her driving school. The applicant must have held a driver's license for the last five (5) years, regardless of when his/her professional driver's license was acquired.

4.Must not have any traffic violations for the past twelve (12) months prior to application as an instructor;

5.Must not have a history of suspension or revocation of driver's license for any cause;

6.Must take and pass the neuropsychiatric test from a government accredited entity;

7.Must have undergone a mandatory drug test performed by a DOH accredited drug testing center, and results must show that he/she is free from the use of dangerous drugs;

8.Must have passed a written examination given by LTO;

9.In addition to the above-stated requirements, a driving instructor applicant for heavy vehicles shall also submit a copy of TESDA NTTC and NC III Driving and Automotive Servicing for heavy vehicles and must have passed the written examination administered by the LTO.

C.Additional Requirements for PDC Instructors

10.Must be a holder of NC II in Automotive Servicing; and

11.Must not have been convicted by final judgment of a crime involving moral turpitude, or of a crime punishable by prision correccional under the Revised Penal Code.

D.Examination for Driving School Instructors

1.Theoretical examinations for the instructors shall be administered at the concerned level in accordance with the schedule indicated below:

a.At the Central Office, every second and fourth Wednesday of the month as requested by the concerned Regional Office/s.

b.At the Regional Office, twice a year depending on the number of applicants or as needed.

2.The applicant shall pay an examination fee of Two Hundred Pesos (P200.00).

3.The driving school instructor must have passed the written examination with an 85% passing raw score, to be administered by the RAC Proctor of the region where the driving school is located or the CO Proctor as the case may be.

4.The CO/Regional Proctor shall immediately check the answers and notify the instructors of the results within fifteen (15) working days from the date of qualifying examinations.

5.Instructors who successfully passed the examinations shall proceed to the LTO Regional Office to secure their Qualifying Examination Certificate.

6.Instructors who failed the first examination shall be allowed to have a maximum of three (3) retakes. After the fourth examination, the instructor-applicant will no longer be allowed to apply as an instructor nationwide. To this end, the list of failed examinees shall be uploaded after every exam to a common website which may be viewed and edited by all Regional Proctors for the counter checking of the numbers of exam re-takes. For further monitoring and supervision, Regional Proctors shall be given a facility under the LTO System for this purpose.

7.The CO/Regional Proctor shall encode the results of the qualifying examinations in the LTO Proctor facility and issue a duly signed Instructor's Qualifying Examination Certificate with the score indicated therein, to the instructor who obtains a passing score.

E.Change of Affiliation

The following requirements shall be submitted by the instructor to the RAC for a change in driving school affiliation:

1.If from one school branch to another school branch of the same driving school:

a.Letter request from driving school stating the reason/s for changing the Instructor's affiliation; Instructor's existing accreditation control number; and the name and address of school branch where the Instructor will be transferred to;

b.NBI/Police Clearance;

c.Certificate of No Apprehension;

d.Certificate of Accreditation; and

e.Must not have any complaints from clients.

2.If from one driving school to another driving school:

a.Letter request from instructor stating the reason/s for changing his/her affiliation; existing accreditation control number; and the name and address of the school where he/she desires to be transferred to;

b.NBI/Police Clearance;

c.Certificate of No Apprehension;

d.Certificate of Accreditation; and endorsem*nt of the driving school where he/she desires to be transferred to.

e.Under no circ*mstances shall a driving instructor be allowed to transfer from one school to another within one year from his enrollment in the current school where he is employed.

The above-stated documents shall be forwarded to the TSD, which shall issue a revised Certificate of Accreditation of the instructor signed by the Assistant Secretary bearing the new driving school affiliation but with the same accreditation control number and period of validity.

ARTICLE V

Certificate of Driving Course Completion

SECTION 20.Issuance and Contents. —

After the satisfactory completion by a student-driver of the prescribed driving course, a driving school shall issue a Certificate of Driving Course Completion to show that he/she has completed the theoretical and/or practical instruction.

A.The certificate of completion for the Theoretical Driving Course (Annex E) shall contain the following:

1.Name, address, logo, and accreditation control number of the issuing driving institution;

2.Name of instructor;

3.LTO Client ID of the applicant;

4.Name, address, date of birth, nationality, age, sex, civil status, and electronically captured picture of the applicant;

5.Certificate Control Number;

6.Date the course has been started and completed;

7.Total number of hours; and

8.Learning modality.

B.In addition, the following shall also be indicated in the certificate of completion for the Practical Driving Course: (Annex F)

9.Student-driver's Permit Number/Driver's License Number;

10.Training Purpose (New Driver's License/Additional DL Code); and

11.DL Codes applied for.

C.On the other hand, the following shall also be indicated in the issuance of a DEP certificate of completion: (Annexes G and H)

1.Name, address, logo, and accreditation control number of the issuing driving institution;

2.Name of instructor;

3.Client ID of the applicant;

4.Name, address, date of birth, nationality, age, sex, civil status, and electronically captured picture of the applicant;

5.Certificate Control Number;

6.Date the course has been started and completed;

7.Total number of hours;

8.Driver's license number;

9.Learning modality; and

10.Training purpose (Comprehensive Driver's Education/Driver's Re-Orientation Program/Intervention Program).

D.The system shall provide a summary of reports for issued TDC, PDC per DL Code, DEP for Nonprofessional and Professional Driver's License, in a per driving institution branch, region, per month, per day format.

SECTION 21.Interconnectivity and Monitoring. —

A.The driving institution's and instructor's profiles shall be tagged and interconnected to the LTMS.

B.The Certificate of Course Completion as mentioned in Section 20 of this Memorandum Circular shall be electronically transmitted in real-time to the LTMS.

C.The manner of electronic transmission shall be done through a uniform front-end facility that is duly approved by the LTO.

D.A biometric sign-off of the driving instructor/s who conducted the driver education shall be required prior to the electronic transmission of the Certificate of Driving Course Completion with the approval of the driving institution administrator. The date of uploading of the administrator shall be indicated in the Certificate of Completion.

In addition, the uploading of Certificates of Completion to the LTO System shall be limited to a pre-determined number of uploads every week. The formula for the computation of the maximum uploads for Certificates of Completion of the TDC and the DEP shall be as follows:

z = S x C x A x f x b

where:

Z= The maximum weekly limit for uploads per course of instruction (i.e., TDC or DEP) for every branch

S= Total sitting capacity, which is the total floor area of all classrooms in sq. m. divided by 1.5 sq. m. However, for purposes of this computation, the maximum floor area for any classroom shall not exceed 60 sq. m.

C= Number of accredited classroom/s used or instructor/s designated to conduct the particular course of instruction, whichever is lower

A= Percentage of allowable seating capacity for driving based on the applicable rules issued by the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF), the concerned local government unit, or any relevant authority

f= Number of days the course is delivered in a week divided by the number of prescribed days of instruction (f = d/i)

b= Number of unique classes per day for such course of instruction (i.e., TDC or DEP)

The system shall only allow uploading of TDC and DEP Certificates every Monday to Saturday. The system shall deny the uploading after the maximum weekly cap has been reached.

1.The LTO system shall limit the number of PDC Certificates of Completion for DL Codes A and A1 to five (5) uploads per day for every accredited motorcycle per instructor, per branch whichever is lower.

2.The uploading of PDC for light vehicles shall cover the three (3) DL Codes B/B1/B2.

3.For DL Codes B/B1/B2, BE, C, CE, D, three (3) uploads per day for every accredited vehicle or accredited practical driving school instructor, whichever is lower.

E.Driving schools shall be required to have the IT equipment and facilities necessary for the successful transmission of the Certificates of Course Completion using the duly approved front-end facility.

F.The main office of a driving institution and any of its branches shall be treated as separate entities. The uploading facility of the main office shall not, in any manner, be connected to any of its branches.

G.The TSD and RAC shall monitor, evaluate and give performance ratings to driving schools based on the previous operations and community relations. The System shall provide the CO Committee and RACs with the report of the applicants who have failed the LTO theoretical exam and practical tests.

ARTICLE VI

Miscellaneous Provisions

SECTION 22.Drug-Free Workplace. —

The driving institution, regardless of the number of employees, shall develop and implement a drug abuse prevention program in the workplace. The said program shall include the adoption of company policies against drug use in the workplace, a drug testing and rehabilitation program, and policies on work resumption.

Employers shall require all their driving instructors to undergo drug testing at least twice every year with the presence and supervision of a RAC representative. For this purpose, the RAC shall schedule when the random drug test will be conducted. The driving institution shall bear all the expenses for drug testing. To ensure the safety of students, driving instructors who test positive for drug use shall not be allowed to perform their duties and functions. Strict confidentiality shall be observed with regard to the testing and the test results. Driving schools shall submit the results to the RAC within three (3) days from their receipt.

SECTION 23.Corporate Social Responsibility. —

Driving schools, DEPTCs, and accredited TVIs shall institute a scholarship program for indigent and deserving students as part of its community road safety advocacy. For every twenty (20) graduates of a particular driving course, the covered driving institution must give a free driving course of the same kind to at least one (1) qualified individual. The selection of recipients shall be based on clear criteria set by the covered driving institutions. A list of recipients shall be submitted to the RAC every month.

SECTION 24.Compliance with Other Related Laws, Rulesand Regulations. —

It shall be the duty of the duly-accredited institutions to comply with this Memorandum Circular and other rules and regulations, laws, and policies in relation to their operations, such as but not limited to the following:

A.Provision of educational assistance to senior citizens to pursue technical education by providing scholarships, subsidies, financial aid, or grants under Republic Act No. 9994 (Expanded Senior Citizens Act of 2010);

B.Provision of access to quality education and ample opportunities to develop their skills under Republic Act No. 7277 (Magna Carta for Disabled Persons) for persons with disabilities who may be permitted to operate motor vehicles;

C.Protection of clients' personal information under Republic Act No. 10173 (Data Privacy Act of 2012);

D.Prohibition against "fixing" under Republic Act No. 11032 (Ease of Doing Business and Efficient Government Service Delivery Act of 2018);

E.Adoption of zero-tolerance policies on gender-based sexual harassment in business establishments and posting of hotline numbers in bold letters of designated anti-sexual harassment officer of the driving institutions under Republic Act No. 11313 (Safe Spaces Act);

F.Rules and regulations under local ordinances not inconsistent with these guidelines; and

G.IATF Regulations in relation to the COVID-19 pandemic.

SECTION 25.Driving Institutions under Community Quarantine. —

The status of operation of the driving institutions shall comply with the latest issuances of rules and regulations relative to the implementation of the community quarantine and other restrictions nationwide set by the Inter-Agency Task Force (IATF) for the Management of Emerging Infectious Diseases, Department of Trade and Industry (DTI), Local Government Units (LGUs), and other implementing agencies.

Under the new normal, the latest IATF Omnibus Guidelines on the Implementation of Community Quarantine shall be adhered to.

ARTICLE VII

Prohibited Acts and Penalties

SECTION 26.Prohibitions for Driving Institutions. —

The following penalties shall be imposed on driving institutions that have committed the acts prohibited under this Section. The Assistant Secretary shall permanently revoke the accreditation of the driving school on the third offense. Meanwhile, a driving institution operating under a Provisional Permit that has committed any violation under this Section for the first offense shall suffer the penalty of revocation and shall be permanently disqualified from being issued a Provisional Permit or a Certificate of Accreditation.

SECTION 27.Prohibitions for Driving Instructors. —

The following penalties shall be imposed on driving instructors who have committed the acts prohibited under this Section.

SECTION 28.Preventive Suspension and Hearing. —

A.If upon evaluation of a complaint received there exists a prima facie evidence that a violation has been committed by a driving institution or instructor or both, the RAC shall recommend to the LTO Regional Director the issuance of a show-cause order and the immediate imposition of a preventive suspension of not more than thirty (30) days pending the outcome of the investigation. However, in the case of actual inspection, audit, or monitoring visits, the LTO Regional Director may authorize the RAC Chairman to issue a show-cause order and impose the preventive suspension immediately upon reasonable belief that a violation under this issuance has been committed;

B.The concerned driving institution and/or instructor shall be given five (5) days to file an answer under oath with the necessary supporting evidence or attachments. Failure to file an answer under oath shall be deemed a waiver of its right to heard and shall authorize the RAC to resolve the case based on available records;

C.Should it deem necessary, the RAC may, within seven (7) days from the submission of the answer, conduct a hearing on the points raised in the answer or require the submission of a supplemental answer. Due notice must be given to the concerned driving institution and/or instructor;

D.The RAC shall decide on the case within the 30-day period of the preventive suspension of the concerned driving institution and/or instructor, subject to the approval of the Regional Director. Failure of the RAC and the Regional Director to issue the said decision within the aforementioned period shall result in the reactivation of the driving institution's and/or instructor's accreditation in the LTO system.

SECTION 29.Additional Rules on Suspension and Revocation. —

The following rules on suspension and revocation shall likewise be observed:

A.For the imposition of penalties, branches of the same driving institution are treated as distinct and separate from their main office and each other. The suspension of either the main office or any of its branches does not affect the accreditation of other branches;

B.The instructors' accreditation under the main office or branch with suspended or revoked accreditation shall also be deactivated;

C.The uploading facility of a suspended institution main office or branch shall be disabled;

D.The revocation of the accreditation of the institution and/or instructors shall only be done by the TSD with the approval of the Assistant Secretary.

SECTION 30.Appeal. —

All decisions of the LTO Regional Director shall be appealable to the Assistant Secretary. The decision of the Assistant Secretary shall be final and unappealable.

ARTICLE VIII

Final Provisions

SECTION 31.Repealing Clause. —

Memorandum Circular Nos. 2019-2176 and 2020-2186 are hereby repealed. All other orders, memoranda, circulars, and issuances in conflict with these revised rules and regulations are deemed revoked, amended, or revised accordingly.

SECTION 32.Separability Clause. —

If any provision or part hereof is held invalid or unconstitutional, the remainder of the Memorandum Circular or provisions not otherwise affected shall remain valid and subsisting.

SECTION 33.Effectivity. —

This revised Memorandum Circular shall take effect immediately upon its publication in the Official Gazette or a newspaper of general circulation, and upon registration with the Office of the National Administrative Register at the University of the Philippines Law Center, U.P. Diliman, Quezon City.

Approved this September 16, 2021.

(SGD.) EDGAR C. GALVANTEAssistant Secretary

ANNEX A

Theoretical Driving Course

First Session — Five (5) Hours

Second Session — Five (5) Hours

Third Session — Five (5) Hours

ANNEX B

Practical/Actual Driving Course

Eight (8) Hours

ANNEX C

Land Transportation OfficeComprehensive Driver's Education

ANNEX D

Driver's Re-orientation Course — 4 hours

ANNEX E

Certificate of Completion

ANNEX F

Certificate of Completion

ANNEX G

Certificate of Completion

ANNEX H

Certificate of Completion

ANNEX I

Certificate of Accreditation

ANNEX J

Certificate of Accreditation

ANNEX K

Certificate of Accreditation

ANNEX L

Certificate of Accreditation

ANNEX M

Name of Driving Institution

ANNEX N

Application Form — Driving Institution

ANNEX O

Application Form — Instructor