Challenges in Dropping and Substituting Phased Out PUB Units
- Existing LTFRB policies mandated that a unit to be dropped must be currently registered with the Land Transportation Office (LTO).
- Operators faced difficulties in dropping and substituting their phased-out buses because these units were not currently registered after phase-out.
Authority to Revise Policies and Implement Modernization
- LTFRB exercised its regulatory authority under Executive Order No. 202, Section 5, to revise policies concerning phased-out PUB units.
- The revision aims to facilitate the modernization program by allowing the substitution of phased-out units with new units under specific guidelines.
Guidelines for Dropping and Substitution of Phased-Out PUB Units
- The operator must file a Petition for Dropping and Substitution including:
- Certificate of Registration (CR) in the operator's name for the phased-out unit.
- Official Receipt (OR) of the brand new substitute unit.
- Acceptability of petitions even if the phased-out unit is not currently registered, provided:
- The unit was confirmed and validly registered with the LTO three (3) years before the year of phase-out.
- Validity of the Certificate of Public Convenience (CPC) authorizing the phased-out unit is required at filing; petitions may be accepted with a filed Petition for Extension of Validity for expired CPCs, as certified by the Legal Division or Regional Regulatory Franchising Board (RRFB).
Conditions on Substitute Units
- Only brand new PUB units are allowed as substitutes.
- Definition of "brand new" follows Department Order No. 2010-32: vehicles constructed entirely from new parts and submitted for initial LTO registration.
- Refurbished or second-hand buses are expressly prohibited as substitutes.
Procedures Upon Filing the Petition
- Operators must surrender the yellow plate corresponding to the phased-out unit.
- If yellow plates or RRPL cannot be surrendered, the operator or corporate president must submit an affidavit explaining the absence along with clearances from the LTO and MMDA confirming the plate is not confiscated.
- Compliance with all documentary requirements for the Petition is mandatory.
- Operators are responsible for paying all applicable charges and filing fees during the submission.
Effectivity and Supersession
- The memorandum circular became effective immediately upon publication in at least two newspapers of general circulation.
- It modifies, amends, or supersedes inconsistent provisions from previous LTFRB issuances.
- Copies are to be filed with the UP Law Center as mandated by a presidential memorandum.