Senator Erwin Tulfo on Monday filed a bill seeking to criminalize the “license-for-rent” scheme, which surfaced as a central modus operandi during recent Senate hearings into the flood control scam.

The proposed measure, to be known as the “License Integrity Act,” will penalize the lending, borrowing, or fraudulent use of government-issued licenses with imprisonment of not less than three years and not more than 12 years, and/or a fine ranging from P300,000 to P3 million.

The bill will cover not only licenses issued by the Department of Public Works and Highways to contractors, but also licenses issued to customs brokers under the Bureau of Customs and environmental permits from the Department of Environment and Natural Resources.

“These privileges are frequently abused,” Tulfo said. He also stressed that government officials who issue licenses to unqualified individuals or those with conflicts of interest will not be spared.

“A disturbing practice has emerged where grantees lend, lease, sell, or otherwise allow third parties to unlawfully use their licenses, while others fraudulently obtain or misrepresent such privileges to cloak illegitimate transactions under the guise of legality,” he said.

Under the bill, Tulfo said violators will face both administrative and criminal penalties.

“This affirms the nature of licenses and permits as personal, nontransferable privileges subject to the continuing oversight of the state,” he noted.

The measure’s core purpose is to restore the integrity of licenses and permits issued by the government, reinforce accountability, prevent systemic abuse, and ensure that licenses are used solely for their legal and rightful purpose.

He further stressed that licenses should never be treated as commodities that can be rented or sold.