Question & AnswerQ&A (LTFRB MEMORANDUM CIRCULAR NO. 2004-028)
The main purpose is to curb and eradicate colorum operations by instituting a ban on private motor vehicles apprehended thrice for operating as for-hire without the required Certificate of Public Convenience, and to ban their owners from obtaining franchises from the LTFRB.
Operating a private motor vehicle for hire without the required Certificate of Public Convenience (CPC) is considered a colorum operation.
The vehicle shall be forever banned from being used as a public utility vehicle if the owner applies for a franchise.
The owners are banned from obtaining any franchise from the LTFRB, and if they have existing franchises for other units, these shall be cancelled and revoked after due notice and hearing.
They are directed to request an inventory of motor vehicles apprehended for colorum operation from law enforcement agencies on a monthly basis.
Different law enforcement agencies in coordination with the LTFRB are involved in the campaign against colorum operations.
The cancellation and revocation require due notice and hearing to the franchise holder.
The circular took effect fifteen (15) days following the filing of three (3) copies with the UP Law Center, pursuant to Presidential Memorandum Circular No. 11, dated October 9, 1992.
All other issuances or parts thereof which are inconsistent with this circular are modified or superseded accordingly.
The circular was signed and adopted by Maria Elena H. Bautista, Chairperson, and Felix S. Racadio, Board Member.