Title
Review of LGU transport rules and franchises
Law
Executive Order No. 712
Decision Date
Mar 11, 2008
President Gloria Macapagal-Arroyo issues Executive Order No. 712 to address complaints raised by transport organizations regarding public transportation issues in the Philippines, including the establishment of common transport terminals, unilateral rerouting schemes, and additional costs imposed by local ordinances, with the Department of Transportation and Communications (DOTC) tasked to review existing orders and regulations issued by Local Government Units (LGUs) and establish a National Land Transport Policy Framework.
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Q&A (EXECUTIVE ORDER NO. 712)

The DILG is to advise LGUs to suspend (1) the establishment and operations of new and existing transport terminals that charge fees and require compulsory use by public utility vehicles; (2) enforcement of rerouting schemes that violate authorized routes in PUV franchises; (3) issuance of new tricycle franchises (while respecting existing ones); (4) increase in local fees and charges applicable to public transportation; and (5) implementation of local programs, projects, and ordinances that impact the cost of PUV operations without DOTC approval.

Section 17, Article VII of the 1987 Constitution grants the President control over executive departments and general supervision over LGUs under Section 4, Article IX. Executive Order No. 125 as amended grants DOTC power to administer and enforce transport laws. Republic Act No. 4136 (Land Transportation and Traffic Code) empowers the Land Transportation Office to enforce traffic laws and issue citation tickets.

The Department of Transportation and Communications (DOTC) and the Land Transportation Franchising Regulatory Board (LTFRB) have jurisdiction over the establishment and use of transport terminals and determination of routes of public utility vehicles with national government-issued franchises.

Article 458 states that the power of LGUs to regulate tricycles and grant franchises is subject to guidelines prescribed by the DOTC, ensuring that LGU regulations align with national transport policy.

The Framework is a policy to facilitate modernization of the land transport industry by promoting environment-friendly utility services and providing assistance such as lease-to-own programs, technical help, subsidies, and encouragement to use alternative fuels or renewable energy.

The MMDA is tasked to implement a single ticketing system throughout Metro Manila per Republic Act 7924 to unify fare collection and possibly improve transport efficiency.

The Department of Interior and Local Government must establish and implement uniform truck ban hours applicable to LGUs located in a common area nationwide to prevent confusion and traffic disruptions.

All other orders, issuances, or portions thereof inconsistent with this Executive Order are revoked, amended, or modified accordingly.

If any section or part of the Executive Order is declared unconstitutional or illegal, the other sections or parts shall not be affected and shall remain in force.


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