Title
Franchising Tourist Bus Services LTFRB 1996
Law
Ltfrb Memorandum Circular No. 96-009
Decision Date
Jun 28, 1996
The LTFRB announces the acceptance of applications for franchises to operate 2,130 tourist buses, coaches, and mini-buses, requiring operators to be Filipino-owned, maintain specific operational standards, and comply with DOT endorsements.

Questions (LTFRB MEMORANDUM CIRCULAR NO. 96-009)

It sets the guidelines for accepting and granting applications for Certificates of Public Convenience to operate tourist buses, coaches, and mini-buses, in response to DOT-identified tourism transport needs.

Luzon: 1,290 units; Visayas: 360 units; Mindanao: 480 units; Total: 2,130 units.

An MOA entered into among the LTFRB, DOT, and LTO dated 20 June 1996 is referenced; it provides the basis for franchising tourist transport operators.

New and expanding operators who meet citizenship and ownership requirements: individuals must be Filipino citizens; partnerships and corporations must be at least 60% Filipino-owned.

At least three (3) units per tourist transport operator.

The units must have the inscription: “ACQUIRED WITH INCENTIVES PURSUANT TO THE PROVISIONS OF E.O. 226 SERIES OF 1987.”

A maximum of ten (10) years from the year of manufacture, to be determined by the DOT.

Units must not be operated as regular first class air-conditioned buses on a fixed route catering to the general riding public (i.e., they are limited to tourism purposes/terms of CPC).

The operator may be penalized with cancellation of its franchise after hearing, particularly for violations such as operating as regular first class AC buses on fixed routes for the general public.

Upon DOT recommendation, the operator may be penalized with cancellation of the franchise after hearing.

The LTFRB will close acceptance for filing further applications once the total number of units indicated by the DOT (2,130) has been reached until further notice.

It takes effect fifteen (15) days after the filing of three (3) copies with the U.P. Law Center, pursuant to Presidential Memorandum Circular No. 11 dated 09 October 1992.

It is the procedural requirement for the Circular’s effectivity; publication/filing rules under the cited presidential memorandum determine when the circular becomes effective.

LTFRB (franchising/CPC issuance), DOT (endorsement and vehicle age determination; accreditation), LTO (in the MOA reference), and MMDA (prohibitions on certain areas for garages).


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