Full TEXT:

ORDINANCE NO. 2025-009

AN ORDINANCE ALLOWING THE CASHLESS COLLECTION SYSTEM OF FINES AND PENALTIES AS ALTERNATIVE MODE FOR SETTLING ALL KINDS OF VIOLATION UNDER THE TRANSPORT AND TRAFFIC REGULATIONS AND OTHER REGULATORY ORDINANCES IN THE CITY OF NAGA, PROVIDING FOR THE GUIDELINES IN THE IMPLEMENTATION THEREOF AND FOR OTHER PURPOSES:

Sponsor: Hon. Salvador M. del Castillo

Be it ordained, by the Sangguniang Panlungsod, in session assembled, that:

SECTION 1. TITLE. This Ordinance shall be known as the “Cashless Collection System of Fines and Penalties Ordinance of Naga City”,

SECTION 2. PURPOSES. This ordinance is enacted to demonstrate the earnest effort of the City Government of Naga’s (CGN) adherence to promoting automation in government transactions by providing for a cashless payment scheme to settle all kinds of ordinance violations. It also serves as the implementing guidelines on the conduct of Interconnecting Traffic Apprehension Database and Traffic Apprehension Project of the City Government of Naga (CGN) and the Land Transportation Office (LTO).

SECTION 3. SCOPE AND COVERAGE. This ordinance seeks to automate and improve the payment and collection method particularly related to traffic and transport violations, and other regulatory ordinances in the CGN. It aims to provide an alternative mode of payment scheme to the violators of the above ordinances, taking into consideration the perceived convenience it may contribute in the conduct of this part of government service transactions.

SECTION 4. DEFINITION OF TERMS. For purposes of this ordinance, the following terms and phrases are hereby defined as follows:

(a) Application Programming Interface (API) it allows applications to send information between each system.
(b) Interconnectivity project a system whereby a partner LGU can be authorized to access the database of the LTO through the IT system to effectively implement the traffic and transportation violation management in the concerned LGU.
(c) Law Enforcement Personnel (LEP) personnel who are tasked to enforce the traffic, transportation, and other related regulatory ordinances in Naga City.
(d) Point of Sale (POS) terminal a hardware that enables the LEP to process the issuance of violation ticket and allows the apprehended person to process payment of fine as a result of the apprehension.
(e) Quick-response (QR) code a two-dimensional matrix barcode capable of storing data, readable by imaging devices like cameras, and processed until the image can be appropriately interpreted. The required data are then extracted from patterns that are present in both the horizontal and the vertical components of the QR image.
(f) Traffic and Common Violation Receipt (TCVR) a piece of paper issued by the LEP when apprehending violators of city ordinances.

SECTION 5. INTERCONNECTIVITY PROJECT. This is a system pursuant to Memorandum Circular NO. JMT-2023-2383 series of 06 March 2023 for the CGN and other agencies lawfully issuing traffic violation tickets to interconnect with the Land Transportation Management System (LTMS) for purposes of tagging traffic violation incurred by a traffic violator, record demerit points in accordance with the IRR of RA 10930, authorization of IT provider, and strengthen discipline as well safety on the road through enforcement of laws related to traffic rules.

Pursuant to the above goal, the CGN shall engage or continue its engagement (if one has already been commenced based on the said memorandum) with an IT provider to facilitate the interconnectivity of the CGN Traffic apprehension database to the LTO LTMS.

The interconnectivity process involves the use of a device which is capable of transmitting real time information regarding a traffic violation incurred by a traffic violator to the apprehension database and create an alarm in the LTMS, Motor Vehicle Registration System (MVRS) and/or Driver’s Licensing System (DLS).

Section 6. ACCREDITATION. This section shall refer to the accreditation process provided for under Article II of the abovementioned memorandum. In addition thereto, an Accreditation Committee on the part of CGN is hereby created to administer the implementation and compliance of the IT Provider previously accredited by the LTO parties particularly the documentary and technical requirements set forth in the said memorandum.

The CGN Accreditation Committee shall composed of the following:

Chairman: City Mayor
Co-chair: Chair, SP Committee on Transportation
Members: Department Head, Public Safety Office Head, Information Technology Office City Treasurer

Section 7. ROLES AND RESPONSIBILITIES. In order to ensure the effective implementation of the given mandated functions and efficient revenue collection, the following roles and responsibilities are being laid out, to wit:

7.1 For the CGN:

1. Comply with the documentary requirements of the Land Transportation Office in relation to the Interconnectivity Program;
2. Comply with the interconnectivity and minimum technical requirements for LGU connecting thru application programming interface (API) as stated in Article II, Section 3 of LTO MC No. JMT-2023-2383;
3. Accommodate without delay the needed documents of the IT Provider’s accreditation to LTO;
4. Assign the Public Safety Office (PSO) to be the point agency in the development and implementation of the LTMS interconnectivity; and
5. Be accountable for the provided POS device intended for the LTO-CGN Connectivity.

   a. Safekeep the handheld POS devices and ensure the enforcers do not take them home;
   b. Report any lost or damaged devices due to irresponsible use to Innovision immediately and take responsibility for the replacement cost;
   c. Ensure that the devices are used only for their intended purpose and not for personal gain;
   d. Report any problems and defects of the POS handheld to the provider with the following information: Enforcer, date of malfunction, status of the device, etc.;
   e. Conduct regular inventory checks to ensure all devices are accounted for and in good working condition;
   f. Provide feedback to the provider regarding the performance of the handheld POS devices, including any issues or concerns that arise during the pilot testing phase; and
   g. Coordinate with the provider about the schedule of regular maintenance of the IT system and repairs for the devices as needed;

6. Ensure that all enforcers using the handheld POS devices are adequately trained and understand their responsibilities in using the devices;
7. Maintain confidentiality and security of all data and information obtained through the use of the handheld POS devices in accordance with the applicable laws and regulations;
8. Establish a Trust Fund for the purpose of receiving and disbursing funds related to LTO-CGN Interconnectivity project. The FUND shall serve as a centralized account to facilitate efficient management of financial resources; and
9. Determine the disbursement schedule in consultation with the provider, with the aim of ensuring timely and sufficient financial support for the project’s implementation.

7.2 For the IT provider:

1. Provide the IT System Program and Applications for the CGN to be interconnected to the LTO’S LTMS;
2. Comply with the accreditation requirements and provide the CGN with the documentary requirements listed under Section 2(B), Article II of LTO MC No. JMT-2023-2383;
3. Provide and lease to the CGN the handheld device which will be used in the Electronic Traffic Violation Ticketing System pursuant to Sections 4 and 5, Article II of LTO MC No. JMT-2023-2383.

   a. Provide the necessary training and technical support to the CGN’s personnel on the proper use and maintenance of the handheld device;
   b. Provide software updates and upgrades for the handheld POS devices to ensure they are up-to-date and functioning optimally;
   c. Ensure that handheld POS devices are secure and protected against cyber threats like hacking, malware, and data breaches;
   d. Provide data backup and recovery services to ensure that date stored on the handheld POS devices are protected in case of a device failure or other data loss event;
   e. Conduct regular security audits and vulnerability assessments to identify potential security risks and take appropriate measures to mitigate those risks;
   f. Provide technical support to address any issues or problems that may arise with the handheld POS devices;
   g. Provide regular performance reports and data analytics to the CGN to help better understand and optimize their use of the handheld POS devices; and
   h. Ensure compliance with all applicable laws, regulations, and industry standards related to using handheld POS devices and protect sensitive data.

4. Ensure the integrity of the data collected, in compliance with the provisions of the Data Privacy Act.

Section 8. ISSUANCE OF TCVR THERMAL COPY UPON APPREHENSION. Upon apprehension by the LEP, a thermal paper receipt from the POS shall be handed over to the apprehended person. The said receipt shall contain the necessary information related to the apprehension such as but not limited to the following:

A. Name of the apprehended person
B. His/her address
C. Violation or reason for his/her apprehension
D. Date and time of the apprehension
E. Driver’s License Number or any valid ID Number
F. The name and unit of the apprehending officer
G. The amount of fine/penalty to be paid inclusive of interconnectivity fee and convenience fee charges

SECTION 9. GUIDELINES FOR CASHLESS COLLECTION AND PAYMENT SCHEME. For purposes of availing the services under this ordinance, any apprehended person shall be guided by the following procedure:

9.1 Upon receipt of the TCVR thermal paper copy, he/she may choose to settle the fine/penalty for violating an ordinance by paying the same directly to the City Treasurer’s Office (CTO) or through a cashless payment scheme via online transaction.

9.1.1 By opting to pay directly to the CTO, he/she must present the thermal paper receipt to the CTO counter for payment thereof within the given three-day period to settle the fine/penalty. No other charges will be added to his/her penalty in the form of convenience fees.

9.1.2 By selecting to pay through online transactions, he/she may settle the fine/penalty immediately upon apprehension, if no protest is raised. He/she may settle the fine by scanning the QR code indicated on the thermal paper receipt given by the apprehending officer. Upon scanning the same, he/she must click the web site appearing thereon and will be directed to proceed thereat. He/she will be directed to follow the procedure on the said web site to continue with the payment. Once done, a confirmation for successful payment will appear.

By using the online platforms to settle the fine/penalty of the violation, the apprehended person’s transaction will be subjected to the interconnectivity service fee provided for by the third party contractor and a convenience fee of using the online payment applications as shown below:

Penalty for the committed violation as stated in the concerned City Ordinance + IT Processing  (interconnectivity service) Fees+ Convenience (online payment applications) Fees

In case the apprehended person has no means to scan the QR code in his/her mobile phone, he/she may proceed with the payment by going to the link indicated on the thermal paper receipt using their computer and continue with the given payment instructions thereon. Once done, a confirmation for successful payment will appear.

However, if there is a protest about the apprehension, he/she must proceed at the PSO within the same three day period to settle the fine/penalty and accomplish a protest/complaint form. The three day period to pay shall be tolled by the filing of protest/complaint, otherwise, a case shall be filed in court as a result thereof.

The PSO shall conduct the summary adjudication of the said protest/complaint provided for under the next proceeding section. However, the settling of fine/penalty within the prescribed three day period shall in no way affect the record of the apprehension appearing under his/her name in the LTO records for demerit points considerations of the said agency.

SECTION 10. SUMMARY ADJUDICATION OF PROTESTS/COMPLAINTS. If within the three day period to settle the fine/penalty, the apprehended person timely files a protest/complaint at the PSO, such complaint will result in the tolling of the period, hence, the PSO is constrained to file a case in connection to that particular violation.

The apprehended person shall accomplish the complaint form provided for by the PSO. Upon receipt of the complaint, the PSO shall order the concerned personnel to accomplish the answer form in response to the complaint. This must be done within the three day period mentioned earlier.

After receipt of the answer, the PSO will schedule a summary hearing to adjudicate on the merits of the documents submitted. A hearing officer must decide whether or not to proceed with the collection or will grant the prayer of the apprehended person. If he/she decides in favor of the collection, a fresh period of three days shall be granted to the apprehended person for him/her to settle the fine /penalty. If he/she decides in favor of the protest, the apprehended person will no longer be directed to pay the fine/penalty of the violation. He/she will request the waiver of payment of fine/penalty to the technical support to clear the record of the apprehend person.

If in case the apprehended person is dissatisfied with the decision of the hearing officer, he/she may appeal to the office of the City Mayor for review of the decision. The decision of the Office of the City Mayor is final and executory.

Section 11. Remittance. The City Treasurer’s Office (CTO), in coordination with the third-party contractor, shall establish a clear and efficient process for the remittance of payments collected through online transactions. This process shall include:

1. Daily Reporting: The third-party contractor shall provide daily reports of all payments received, categorized by ordinance type and violation, for reconciliation with the city’s records.
2. Secure Transfers: Payments shall be transferred directly to the designated city account. The contractor shall ensure secure transactions in compliance with data privacy and cybersecurity laws.
3. Real-Time Tracking: The payment system shall be integrated with the city’s financial system to allow real-time tracking and updates.
4. Regular Audits: The CTO shall conduct periodic audits to ensure accuracy, transparency, and proper handling of funds.
5. Timely Fund Remittance: Funds shall be remitted to the city account on an agreed schedule (e.g., daily or weekly). Delays must be reported, and penalties may apply for non-compliance.
6. Consolidated Reports: Monthly reports summarizing all transactions and remittances shall be submitted to the CTO for review and reporting to city officials.
7. Contingency Plans: Backup processes shall be in place to handle technical issues and ensure uninterrupted remittance.

SECTION 12. COMPLIANCE MONITORING. The PSO, CTO and the ITO, with proper coordination with the LTO, are hereby directed to monitor the strict compliance of this ordinance.

SECTION 13. SEPARABILITY CLAUSE. If any part or provision of this ordinance shall later be held to be unconstitutional or invalid, the other part or provisions hereof which are not affected thereby shall remain in full force and effect.

SECTION 14. REPEALING CLAUSE. Any provision of existing ordinances, rules, and regulations and/or parts thereof which are inconsistent with the provisions of this ordinance are hereby repealed and/or modified accordingly.

SECTION 15. EFFECTIVITY. This ordinance shall take effect immediately upon its approval and publication in a newspaper of local circulation.

Enacted: February 18, 2025

WE HEREBY CERTIFY to the correctness of the foregoing resolution.

GIL A. DE LA TORRE
Secretary to the
Sangguniang Panlungsod

CECILIA B. VELUZ-DE ASIS
City Vice Mayor
& Presiding Officer

APPROVED:

NELSON S. LEGACION
City Mayor