Question & AnswerQ&A (LTO MEMORANDUM CIRCULAR NO. 94-199)
The Land Transportation Office (LTO) retains the authority to register all types of motor vehicles, including motorized tricycles, pursuant to Republic Act No. 4136, known as the "Land Transportation and Traffic Code." This authority was not superseded or amended by Republic Act No. 7160 (Local Government Code).
A tricycle-for-hire is a motor vehicle composed of a motorcycle fitted with a single-wheel sidecar or a motorcycle with a two-wheel cab operated to render transport services to the general public for a fee.
The franchising authority over tricycles-for-hire has been devolved from the Land Transportation Franchising and Regulatory Board (LTFRB) to the respective municipal and city governments, specifically the Sangguniang Bayan (municipal council) and Sangguniang Panlungsod (city council).
The local government units can issue, amend, revise, renew, suspend, or cancel MTOPs, prescribe terms and conditions, fix and adjust fares, prescribe and regulate zones, impose and collect fees, and establish conditions and qualifications of service.
Only Filipino citizens and partnerships or corporations with at least 60% Filipino equity are qualified to be operators of tricycles-for-hire.
The official fare to be initially adopted is a minimum fee of P2.00 plus P0.50 for every kilometer in excess of 4.0 kilometers. This applies until the Sangguniang Bayan or Panlungsod prescribes a fare structure.
Tricycles should not operate on national highways where traffic includes 4-wheel vehicles over 4 tons or where speeds exceed 40 KPH unless no alternative route exists. Zones must be within municipal/city boundaries. A common color and identification number per zone may be required. Drivers must have valid LTO licenses. Tricycles must not carry more passengers or goods than designed.
An MTOP is valid for three years and renewable for the same period. Transfer to another zone, change of ownership of the unit, or transfer of MTOP is considered an amendment and requires approval from the Sangguniang Bayan or Panlungsod.
Local governments may collect an annual franchise fee, filing fee upon MTOP application, fare adjustment fee upon fare increase approval, and filing fee for amendments to an MTOP.
No, the LTFRB ceased to have franchising authority over tricycles-for-hire effective 01 July 1992, with powers transferred to local government units. However, the LTFRB retains records and special permits issued before devolution remain valid until expiry.
No, tricycles-for-hire operate like taxi services, providing services on demand within a zone without fixed routes.