LTFRB Memo on Franchise Enforcement and Procedures

The circular is adopted to address flagrant violations of public land transport laws, including the Public Service Act (C.A. 146), Executive Order 202, and existing LTFRB Memorandum Circulars.
LTFRB Memorandum Circular No. 2007-004 mandated the creation of a Law Enforcement Unit, grounded on Sec. 13(a) of the Public Service Act (C.A. 146) and Sec. 5(k) of Executive Order No. 202.
The circular anchors on the Land Transportation and Traffic Code (R.A. 4136), Sec. 63, which preserves the Public Service Act control (by the LTFRB) over motor vehicles operating as public service and preserves LTFRB powers regarding such control and supervision.
The circular invokes the Public Service Act (C.A. 146 as amended):
- Sec. 17(a) grants LTFRB power and duty to prohibit or prevent public service operations without a Certificate of Public Convenience or public necessity and convenience, as applicable.
- Sec. 18 declares it unlawful for any person or entity to engage in a public service business without first securing the required certificate from the commission.

The LTFRB requires enforcement of public land transport laws to be made effective beyond the mere imposition of penalties.
The circular directs compliance with existing laws and LTFRB issuances through an organized enforcement and adjudication mechanism.
The circular establishes the Franchise Enforcement and Adjudication Services (FEAS) as an adjunct LTFRB office focused on enforcement of public transport laws and related LTFRB issuances.

The Franchise Enforcement and Adjudication Services (FEAS) is created as an adjunct office of the LTFRB.
FEAS has the primary responsibility for enforcement of public transport laws such as the Public Service Act (C.A. 146), Executive Order 202, existing rules and regulations, and LTFRB memorandum circulars.
All powers and functions exercised by FEAS emanate from the LTFRB Chairman, who has direct administrative and functional control and supervision over FEAS.
FEAS is headed by a Task Force Head who supervises and controls four (4) service units:
- Public Transport Law Enforcement Office (PTLEO)
  - Chief, Public Transport Enforcement Officer (CPTEO).
  - Public Transport Enforcement Officers (PTEO) as may be appointed, deputized, or designated by the LTFRB Chairman.
- Public Transport Adjudication Office (PTAO)
  - Chief, Public Transport Adjudication Officer (must be a lawyer).
  - Office staff (3 to 5 office staff).
- Intel and Investigation Office
  - Officers as may be deputized by the Chairman, with primary responsibility for gathering information in cases of syndicated and large scale fraud, including tampered meters, illegal issuance of for hire plates, and colorum operation.
- Custudial/Redemption Office
  - Functions as the repository of impounded vehicles, confiscated plates, and other instruments or exhibits turned over for custody and deposit.

The Chief, Public Transport Law Enforcement Officer is responsible for deployment, supervision, and other functional responsibilities over the enforcement officers under him.
Appointed, deputized, or designated enforcement officers must, upon apprehension of any public and land transport utility (as defined by law), inform the concerned driver/operator of the particular violation committed.
The enforcement officers must issue an Investigation Report and Summons (IRS), or a Show Cause Order if necessary, indicating the date and time the respondent must appear before the Office of the Public Transport Adjudication Services.
Apprehensions may involve situations where the operator has or has not secured a Certificate of Public Convenience.

If the operator admits the charge, the Chief, Public Transport Adjudication Services must issue an order directing payment of penalties pursuant to the prescribed penalties under existing LTFRB memorandum circulars.
If the records show the erring operator/driver has not complied with other violations, those other violations must be ordered complied with based on the office records.
In cases of suspension or cancellation of franchise (CPC), the PTAS must forward an appropriate recommendation to the Chairman as administrative head of the Board.

If the operator contests the violation charged in the summons, the Office of the Public Transport Adjudication Services must proceed as if a disciplinary complaint is filed with the Board, in accordance with Part II, Rule 10 (Procedure in Complaints) of the Rules of Practice and Procedure in the LTFRB.
The adjudication office must issue an order requiring the Public Transport Law Enforcement Services to prosecute the cited operator.
When available, the apprehending enforcement officer must be present during the hearing as a witness.
In matters involving franchise violation, the Chief, Public Transport Adjudication Services acts as the Hearing Officer and has power to issue subpoena and subpoena duces tecum.
In evaluating violations, the PTAO is not bound by the technical rules of evidence and must rule based on substantial evidence.
Proceedings are summary in nature, and the parties may be required to submit evidence and position papers.
The Order or Decision disposing the matter is final and executory.

The Chief, PTAS may summarily impose prescribed fines or penalties for offenses not involving suspension or cancellation of franchise.
For penalties involving suspension or cancellation of CPC, the PTAS must prepare an investigation and recommendation to the Chairman, who has final authority to act and dispose of the case.
Inspection of compliance of the particular violation must be mandated at all times to curb and forestall repetition of the same violation.
All fines and penalties imposed at the PTAS level must conform with the table of penalties in existing LTFRB memorandum circulars.
Decisions/Orders imposing suspension, cancellation, or any other penalty the Board deems expedient in the interest of the public, including Cease and Desist Orders, are vested in the Board.

The citation form must follow the draft IRS (Investigation Report and Summons) format and must be made an integral part of the memorandum circular as Annex A.
The memorandum circular does not limit proceedings commenced by any person, operator, or the public under Part II, Rule X of the Rules of Practice and Procedure (administrative matters between operators or public complainant); such proceedings must be acted upon accordingly.
LTFRB Memorandum Circular No. 2007-038 modifies, supersedes, and amends issuances inconsistent with it.

Vehicles subject to impoundment under existing memorandum circulars, rules, and regulations—whether due to apprehension or upon Order of the Board—must be turned over to the Custodial and Redemption Office (CRO).
Confiscated plates and other instruments or documents connected with the apprehension must also be turned over to the CRO.
Impounded vehicles and related items may be released only when ordered by the Board, upon the recommendation of the PTAS.