MEMORANDUM CIRCULAR NO. 2024-2503 SUBJECT : REVISED GUIDELINES ON THE ACCREDITATION OF ONLINE THEORETICAL DRIVING COURSE (OTDC) PROVIDERS DATE : 17 JANUARY 2024 In line with the Land Transportation Office's steadfast commitment to digital transformation, exemplified by the implementation of its registration and licensing services online, streamlined procedures, and integration of technological solutions, consistent with ‘Republic Act No. 11032, which aims to streamline and simplify government processes creating more efficient, accessible, and technology-driven environment for various sectors, including the transportation industry, and 7Republic No. 10930, and its Implementing Rules and Regulations (IRR), the following guidelines on the accreditation of Online Driving Enhancement Program (ODEP) Providers is hereby adopted U.P, LAW CENTER OOnCE att RAROMAT ADWANRTOTWE GIT sector he ss trquon, ARTICLE 4 | GENERAL PROVISIONS R JAN 23 2024 \ EG \ST,E-A) 6 Section 1. Objectives cet ans WE This Memorandum Circular shall have the following _objectives. 1. To establish an accreditation system for OTDC providers with the prescribed * driver education standards consistent with Republic No. 10930 and its IRR. 2. To supplement the conduct of the in-person mandatory theoretical driving course for student permit applicants ensuring uniformity in course modules, platform of instruction and equivalent time component designed to instill road safety consciousness and safe driving habits to drivers. 3. To introduce an online learning platform to student permit applicants as an alternative to face-to-face classroom instruction. Tan Act Promoting Ease of Doing Business and Efficient Delivery of Government Services, Amending for The Purpose Republic Act No. 9485, otherwise known as The Ani-Red Tape Act of 2007, and for Otner Purposes. (May 28, 2018) 2 An Act Ratonaizing and Strengthening the Policy Regarding Drives Licence by Extending the Validity Period of Drivers Licences, ‘and Penalizing Aci in Violation ofits Issuance and Application Amending for those Purposes Section 23 Of Republic Act No. 4136, ‘ks Amended by Balas Pambansa Big, 398 And Executive Order No. 1011, otherwise Known 8 The Land Transportation and Trafic. ‘Code. (August 2, 2017)Section 2. Scope and Coverage These guidelines shall apply to the accreditation and operation of OTDC Providers as well as the onboarding of accredited driving institutions with the accredited OTDC Providers. Section 3. Definition of terms. In this Memorandum Circular, the following definitions shall be adopted: Accredited Driving Institution - LTO-accredited and existing private Driving School ‘or a school operating under the regulation of Technical Education and Skills Development Authority (TESDA) Committee on the Accreditation of Online Theoretical Driving Course (OTDC) and Online Driving Enhancement Program (ODEP) Providers - the Committee tasked to accredit providers offering OTDC and ODEP Online Theoretical Driving Course (OTDC) - an online theoretical driving course instruction composed of different modules which is equivalent to the 15-hour face-to- face classroom instruction conducted by an accredited driving institution Online Theoretical Driving Course (OTDC) Provider - an entity accredited by the LTO to offer OTDC to student-drivers nationwide virtually or through the use of the internet Student-driver - a person enrolled in a driving schoo! undertaking prescribed courses of instruction to operate a motor vehicle Student Permit (SP) - the authority valid for a period of one (1) year embodied in a form prescribed by the Land Transportation Office (LTO) granted to a person who desires to learn fo operate a motor vehicle when accompanied by a duly licensed driver possessing a driver's license with the appropriate restriction code/s driver's license codes for the type of motor vehicle to be operated by the student-drivers ARTICLE II REQUIREMENTS FOR ACCREDITATION once aun ast Section 1. General Accreditation Requirements JAN 23 2024 1. Letter of Intent EGt ed E B 6 2. Duly accomplished application form (Annex A) ha 3. Payment of application is non-refundable fee of P5000.00 4, The OTDC Provider may be a duly registered corporation/partnership or single proprietorship 5. SEC Certificate for corporations and partnerships, DTI certificate for single proprietorship 66. Mayor's Permit (latest) 7. BIR Registration 8. Omnibus Sworn Statement containing the following a. That the applicant OTDC Provider is not an accredited driving institution b. That the applicant OTDC Provider does not own wholly or in part any accredited driving institution ©, That the OTDC Provider shall not apply for accreditation asa driving institution in the future d. That the applicant OTDC Provider is not owned wholly or in part by any officer or employee of DOTr/LTO up to the 4th civil degree of consanguinity or affinity ©. That the applicant OTDC Provider shall provide a 24-hour chat support to its students as well as to partner driving institutions f. That the OTDC Provider shall comply with the requirements of the Data Privacy Law in handling of data from its students and will not use any data collected from student drivers for any other purpose other than that for which itis intended 9. Pre-operating Financial statement showing that the owner-applicant shall be in such financial condition as to reasonably expect it to operate at least two (2) years. 10.Bank Certificate or Credit Line in the name of the proprietor of the OTDC Provider in case of sole proprietorship, or in the name of partnership or corporation in the amount of one million pesos (P1,000,000.00). Section 2. Interconnectivity and Technical Requirements 1. Server Requirement - Cloud-Based Server Infrastructure. The system should be entirely cloud-based, offering high scalability and flexibility. It should be capable of scaling to handle at least 100,000 concurrent users, with substantial processing power and memory allocation as required. 2. Security Requirement - Bot Management/ DDoS Attack Firewall. 3. Database - At least 20TB of Database space. 4. Digital Rights Management - Protection from unwanted Piracy and Copyright Protection. 5. Accessibility - “Cross-Platform” Accessibility. Ensure compatibility and optimized performance across various platforms, including desktops, laptops, and mobile devices. 6. Online Payment Facility -Able to send and receive payment thru existing known, LTO accredited payment gateways. 7. School Dashboard- Able to see student information, Score, Status, downloadable Student list, Student Verification portal. 8. Online Certification - Can be accessed thru Student Profile Account and School Dashboard 9, 24/7 customer chat support. 10. The delivery of the course should be asynchronous or self- aced, meaning student driver should be able to view the instructiogalbaledale divretornben ‘Karourre bow on Regions ‘own time and pace. R JAN 23 2024 EGI SJ ERG 6 6011. Tests and quizzes after the learning module shall be automated and in multiple choice and/or true or false format. 12. Students must be able to review the modules and retake quizzes as many times as needed. 13. Software must be able to randomize tests and quizzes. 14. Software must be able to randomly capture the biometrics (face) of the student to validate that he/she is the one taking the course/exam, 15. A certificate of completion shall be generated after the student finished all the learning modules. 16.The OTDC shall operate on a business-to-business platform. Only LTO- accredited driving institutions that are on board with the accredited OTDC Provider shall be able to access and enroll students in the OTDC platform. 17. Must be able to provide system audit reports/audit trail as needed. 18. The OTDC Provider shall keep and maintain the records of their students for a Period of one (1) year, Section 3. Pilot Testing Prior to the grant of accreditation, the applicant OTDC Provider must undergo and successfully pass the thirty (30)-day period of pilot testing to be conducted under the rules. and procedures to be determined by the Committee on the Accreditation of OTDC and ODEP Providers. Section 4. Validity of Accreditation The accreditation shall be valid for a period of two (2) years, unless sooner revoked for violations listed in this Memorandum Circular. ARTICLE Ill ONLINE THEORETICAL DRIVING COURSE (OTDC) PROCESS In the conduct of the OTDC the following process shall be observed: 1. The applicant accesses the LTO website and selects a driving school to enroll in the OTDC. 2. The applicant is directed to the driving school's website. 3. The applicant registers and accomplishes the application form, 4. Upon completing the application form, the applicant proceeds to pay the application fee online through the provided online payment channels. 5. Upon payment, the applicant is given access or a link to the OTDC provider. 6. The OTDC shall be divided into modules. A quiz shall be given after completion of every module. The applicant must obtain a passing score of at least 80% before he/she can proceed to the next module. 7. After all the modules are completed, a certificate of completion,s to the applicant by the driving school. once8. The student shall then proceed to the driving school where he/she is enrolled for the final validation examination. 9. Upon successfully passing the validation examination, the driving school shall issue the the OTDC Certificate to the student and also electronically transmit the same the LTO IT system. ARTICLE IV ONLINE THEORETICAL DRIVING COURSE (OTDC) INSTRUCTIONS 4. The OTDC Provider must create a video presentation in at least 2D animation based on the approved TDC module from the Traffic Safety Division of LTO. All video presentations must be contextualized to the Philippine setting. . The total time of the OTDC shall be equivalent to fifteen (15) hours, inclusive of the video presentations, exercises as well as the review and after module quizzes. 4, The video presentations shall be divided into modules according to prescribed topics. 5. All video presentations should provide the necessary photos or clips pertaining to. the road signs and other important elements. All audio-visuals should be clear and comprehensible and appropriately labeled so as to avoid rights infringement 6. There shall be automated quizzes and tests after every module. 7. The modules shall be primarily in any of the following languages: English, Tagalog- English Bisaya-English or all other major dialects in the Philippines. 8. The concept of "ROAD SAFETY’ in relation to traffic laws/rules should prevail throughout the course. en ARTICLEV PROCEDURE IN CASE OF TECHNICAL MALFUNCTION In case of technical malfunction, the following procedure shall be strictly observed: 1. Turn-around-time (TAT) for any technical malfunction shall be a maximum of 24 hours, unless a longer period is required depending on the nature of the technical malfunction. 2. Should there be any technical concerns, the OTDC Provider is required to undertake the following: a. Promptly submit a written notice to the Assistant Secretary through the Management Information Division (MID) stating therein the details of the technical issues, actions taken as well as expected timeline of resolution of said concer. b. Notify in writing all accredited driving institutions that are on board the OTDC Provider stating therein the details of the technical issues, actions taken, and ‘expected timeline of resolution. c. If the 24-hour TAT cannot be achieved, the OTDC Provider provide the enrolled students alternative course of action, hase Provider is addressing the technical concerns. RR» eee JAN 23 2024ARTICLE: VI FINES AND PENALTIES The following Penalties shall be Memorandum Cire 1g schedule applying the imposition of graduated scales of fines and 'mposed upon an accredited OTDC Provider for any violation of this lular committed in the conduct of the OTDC, to wit: VIOLATION PENALTY 1. Conducting OTDC without proper accreditation from LTO through the Committee on Accreditation of OTDC Providers Blacklisting of the OTOC Provider including its incorporators if itis a Division in the conduct of the OTDC 3. Violation of the Omnibus Sworn Statement i corporation 2. Use of instructional material apart from that | FIRST OFFENSE Prescribed by LTO through the Traffic Safety | -Fine of P20,000.00 and Suspension of Accreditation for 30 days SECOND OFFENSE -Fine of P30,000.00 and Suspension of Accreditation for 60 days THIRD OFFENSE -Fine of P50,000.00 and Revoe-tion of Accreditation and blacklisting of the OTDC provider i Revocation of Accreditation and black listing of the OIDC provider 4. Failure to report to LTO any technical malfunctions that affect the conduct of the OTDC as required under Par 10, Sec 2, Art Il of this Memorandum Circular FIRST OFFENSE = Fine of P20,000.00 and Suspension of Accreditation for 30 days SECOND OFFENSE -Fine of P30,000.00 and Suspension of Accreditation for 60 days THIRD OFFENSE -Fine of P60,000.00 and Suspension of Accreditation for 90 days FOURTH OFFENSE - Fine of P100,000.00 and Suspension of Accreditation for 1 year5. Itregular use of OTDC Accreditation, when the OTDC Provider acts without or in excess of the functions and responsibilities of the accreditation as prescribed by these guidelines, FIRST OFFENSE -Fine of P20,000.00 and Suspension of Accreditation for 30 days SECOND OFFENSE -Fine of P30,000.00 and Suspension of Accreditation for 60 days THIRD OFFENSE Fine of P50,000.00 and Revocation of Accreditation ARTICLE VII FINAL PROVISIONS Section 1. Repealing Clause All orders, issuances and rules pertaining to the operation and requirements for the Accreditation of OTDC Providers which are inconsistent with this Memorandum Circular, are hereby repealed and modified accordingly Section 2. Separability Clause If any provision or part hereof is held invalid or unconstitutional, the remainder of the Memorandum Circular or provisions not affected shall remain valid Section 3. Effectivity This Memorandum Circular shall take effect after fifteen (15) days from its publication in a newspaper of general circulation and filing of three (3) copies with the National Administrative Register, UP Law Center. For strict compliance MENDOZA II ‘ssiftant Secretary he U.P. LAW CENTER [CERTIFIED TRUE COPY} or Es: 4 Hoktick dau aa if eft EN SERVICES SECTION ott ennces (OME athe sara aout Comme to we Mera JAN 23 2024ONLINE THEORETICAL DRIVING COURSE (OTDC) PROCESS FLOW APPLICANT CHOOSE OPTION FOR DRIVING SCHOOL APPLICANT IS DIRECTED TO ‘THE DRIVING SCHOOL'S WEBSITE ONLINE PAYMENT ACCESS OTDC COMPLETE OTDC THE = CERTIFICATE = OF COMPLETION IS E-MAILED TO THE STUDENT BY THE DRIVING SCHOOL REGISTER AND FILL OUT THE APPLICATION FORM. STUDENT PROCEEDS TO THE DRIVING SCHOOL FOR THE FINAL VALIDATION EXAMINATION UPON PASSING THE VALIDATION EXAMINATION, THE DRIVING SCHOOL SHALL ISSUE THE OTDC CERTIFICATE TO THE STUDENT AND ALSO ELECTRONICALLY TRANSMIT THE SAME TO THE LTO SYSTEM.APPLICATION FOR NEW ACCREDITATION AS ONLINE THEORETICAL DRIVING COURSE (OTDC) PROVIDERS DATE: BUSINESS NAME: BUSINESS ADDRESS: CONTACT NUMBER: 1. General Accreditation Requirements. Letter of Intent Copy of official receipt of payment of application fee (P 5000.00) For sole proprietorship, Department of Trade and Industry (DTI) Cerificate of Business Name Registration For corporation and partnership, Securities and Exchange Commission (SEC) Certificate of Registration Certified True Copy of Mayor's Permit (latest) Bureau of Internal Revenue (BIR) Registration and Tax Identification Number Omnibus Swom Statement Pre-operating Financial statement showing that the owner-applicant shall be in such financial condition as to reasonably expect it to operate at least two (2) years. Bank Certificate or Line of Credit in the name of the proprietor of the OTDC Provider in case of sole proprietorship, or in the name of the partnership or corporation in the amount of P 1,000,000.00. Printed Name and Signature of Applicant and/or Authorized Representative pe EEReeer eee eer eee Ceceeeeeeeeeeoeeeee Designation UP LAN GE CERTIFIED TRUE COPY] | “bee LE GEN SERVICES SECTION Wicks SECTION