Title
Supreme Court
Creation of LTRB and its Powers
Law
Executive Order No. 202
Decision Date
Jun 19, 1987
Executive Order No. 202 establishes the Land Transportation Franchising and Regulatory Board (LTFRB) in the Philippines, responsible for regulating public land transportation services and overseeing the issuance of permits and determination of fares.

Law Summary

Composition and Qualifications of the Board

  • Composed of three members: a Chairman and two members.
  • All members hold the rank and benefits equivalent to an Assistant Secretary.
  • Appointment by the President on recommendation of the Secretary of Transportation and Communications.
  • Required qualifications:
    • One member must be a lawyer with at least five years of practice in the Philippines.
    • One member must hold an engineering degree with at least five years of experience.
    • One member must possess a degree in economics, finance, or management with equivalent experience.

Executive Director and Support Staff

  • The Board is assisted by an Executive Director appointed by the President, ranking as a Department Service Chief.
  • The Executive Director aids the Board in fulfilling its mandate.
  • Support divisions include Technical Evaluation, Legal, Management Information, Administrative, and Finance.

Administrative Supervision

  • The Secretary of Transportation and Communications, through an Undersecretary, exercises supervision and control over the Board.

Powers and Functions of the Board

  • Prescribes and regulates routes, capacities, and operational zones for motorized public land transportation.
  • Issues, amends, suspends, or cancels Certificates of Public Convenience and permits.
  • Determines, reviews, and adjusts fares and related charges.
  • May issue injunctions and punish contempt as per Rules of Court.
  • Has authority to issue subpoenas, summon witnesses, and administer oaths.
  • Conducts investigations and hearings on violations of public service laws and Board regulations.
  • Reviews decisions or actions of Regional Franchising and Regulatory Offices on its own initiative.
  • Promulgates procedural rules, emphasizing speediness and objectivity over formal legal technicalities.
  • Fixes, imposes, collects, and adjusts fees for services rendered.
  • Formulates and enforces rules on transport standards and safety measures.
  • Coordinates with other government agencies for improving public land transportation services.
  • Performs other functions as necessary or provided by law.

Decision-Making and Appeals

  • The Board sits en banc, requiring at least two members’ concurrence for decisions.
  • Decisions order or resolutions are appealable to the Secretary of Transportation and Communications within 30 days.
  • The Secretary may review decisions motu proprio before they become final.

Regional Franchising and Regulatory Offices

  • Established in each administrative region, headed by a Regional Manager with rank equivalent to Assistant Regional Director.
  • These offices handle uncontested route applications and petitions regionally.
  • Matters outside territorial jurisdiction are decided by the central Board.

Appeals from Regional Offices

  • Decisions of Regional Offices are appealable to the Board within 30 days of receipt.

Funding and Appropriations

  • Initial funding drawn from the Department of Transportation and Communications’ funds.
  • Subsequent budgets included in the General Appropriations Act.

Effectivity

  • The Executive Order takes immediate effect upon issuance.

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