Exemption of Certain Car Rentals from LTFRB Franchise

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LTFRB MEMORANDUM CIRCULAR NO. 2011-008: Exemption of Certain Car Rentals from LTFRB Franchise

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Title Source: Supreme Court: Exemption of Certain Car Rentals from LTFRB Franchise

Law: Ltfrb Memorandum Circular No. 2011-008

Decision Date: Sep 5, 2011

The LTFRB exempts certain car-rental services from the requirement to secure franchises, provided they are covered by long-term lease contracts or exclusively used by the lessee, while maintaining regulations for other rental services.

Law Summary

Purpose of the Amendment

Issued due to consultations with transport groups and a review of existing rules.
Intended to exclude certain private car-rental services from the franchise requirements under the original Circular.

Conditions for Exemption from Franchise Requirements

Private vehicles rented out are exempted if either:
- They are covered by a long-term lease contract between the lessee and the car rental company or vehicle owner.
- The vehicle is exclusively used and driven by the lessee or the lessee's authorized representative.

Coverage of Other Rent-a-Car Services

Rent-a-car owners who do not meet the exemption criteria remain subject to the franchise requirements of Memorandum Circular No. 98-027.

Effectivity and Supersession

The Memorandum Circular takes effect fifteen (15) days after:
- Its publication in a newspaper of general circulation.
- Filing of three (3) copies with the University of the Philippines Law Center, per Presidential Memorandum Circular No. 11 (dated October 9, 1992).
Supersedes any prior issuances inconsistent with its provisions.

END