Legal and Regulatory Authority
- Implementation pursuant to Department Order No. 2017-11 (Omnibus Franchising Guidelines) aiming for reliable, safe, accessible, environment-friendly transportation.
- LTFRB tasked by EO No. 202 to prescribe and regulate routes, capacities, and zones of public land transport services.
- LTFRB empowered to formulate and enforce operational rules, safety, and comfort measures, and other relevant functions under the law.
Initial Implementation Guidelines
- Identify developmental routes with fixed origin and destination, including missionary and special area routes (industrial zones, university complexes).
- Routes must have limited overlap (not exceeding 25% of affected routes) per the OFG.
- Conduct passenger demand surveys and coordinate with LGUs regarding land use plans.
- Routes recommended by LTFRB for approval and endorsement to DOTr.
- Route authorization by DOTr is prerequisite to CPC application processing by LTFRB.
Application Requirements for Modernized Franchises
Applicants must submit:
- Proof of consolidation into a single legal entity.
- Detailed route description and length.
- Number of units planned for operation.
- Vehicle specifications aligned with OFG and Philippine National Standards.
- Garage and terminal specifications per OFG.
- Evidence of technological capacity (GNSS, Wi-Fi, CCTV, Automated Fare Collection, speed limiters, dash cams).
- Fleet management plans including proposed headway during peak and off-peak hours.
- Financing scheme or package, if applicable.
- Compliance with safety requirements.
- Proposed fare structure.
Preference and Processing Procedures
- Preference given to operators consolidating under a single legal entity meeting all requirements.
- Notice of Selection (NOS) issued after notice, hearing, and evaluation.
- Applicants must avail 100% of authorized units within 3 months from NOS issuance.
- LTFRB to issue CPC after deadline compliance; failure incurs daily P5,000 fines for unjustified delays.
- Special Permits (SP) may be issued to OFG-compliant units during CPC processing.
Penalties
- Failure to provide authorized units within prescribed time without justifiable cause results in a fine of P5,000 per day of delay.
Repealing Clause
- Previous inconsistent issuances are modified or superseded by this circular.
Effectivity
- The guidelines take effect 15 days after publication in a newspaper of general circulation.
- Three copies to be filed with the UP Law Center per Presidential Memorandum Circular No. 11, dated 09 October 1992.