Title
Review of LGU transport rules and franchises
Law
Executive Order No. 712
Decision Date
Mar 11, 2008
President Gloria Macapagal-Arroyo issues Executive Order No. 712 to address complaints raised by transport organizations regarding public transportation issues in the Philippines, including the establishment of common transport terminals, unilateral rerouting schemes, and additional costs imposed by local ordinances, with the Department of Transportation and Communications (DOTC) tasked to review existing orders and regulations issued by Local Government Units (LGUs) and establish a National Land Transport Policy Framework.
A

Suspension Orders Pending Review

  • The Department of Interior and Local Government (DILG) is tasked to advise LGUs to suspend the following pending DOTC review:
    1. Establishment and operation of new and existing transport terminals charging fees and requiring compulsory usage by PUVs.
    2. Enforcement of rerouting schemes that violate authorized PUV routes as per franchises.
    3. Issuance of new tricycle franchises, respecting existing ones.
    4. Increases in local fees and charges applicable to public transportation.
    5. Implementation of local programs, projects, or ordinances impacting PUV operation costs without prior DOTC coordination and approval.

Jurisdiction and Coordination

  • Recognizes the paramount public interest embodied in PUV operations, emphasizing that increased operational costs directly affect transport fares.
  • Requires local ordinances or fees potentially raising costs to secure DOTC coordination and approval to prevent prejudice to public interest.
  • Confirms DOTC and Land Transportation Franchising and Regulatory Board (LTFRB) jurisdiction over transport terminals and route determinations.
  • Subject to DOTC guidelines, LGUs retain regulatory power over tricycle operations per Article 458 of the Local Government Code.

National Land Transport Policy Framework

  • DOTC shall formulate a National Land Transport Policy Framework aiming to modernize the land transport industry.
  • Framework promotes:
    • Environment-friendly utility services.
    • Assistance via lease-to-own programs.
    • Technical support and subsidies.
    • Use of alternative fuels and renewable energy.

Traffic Citation and Enforcement

  • Acknowledges existing powers of the Land Transportation Office (LTO) under Republic Act No. 4136 to enforce traffic laws, issue traffic citations, and confiscate drivers licenses.
  • Limits LGU authority to issue their own traffic citation tickets (Ordinance Violation Receipts) without coordination.

Other Institutional Responsibilities

  • Metropolitan Manila Development Authority (MMDA) mandated to implement a single ticketing system throughout Metro Manila as per Republic Act 7924.
  • DILG to establish uniform truck ban hours applicable to LGUs within common areas nationwide, subject to existing laws.

Legal and Constitutional Provisions

  • Cites Executive Order No. 125 and constitutional articles granting DOTC authority over transportation laws and LGU supervision.
  • Includes severability clause: invalidity of any section does not affect the remainder of the order.
  • Repeals or modifies inconsistent prior orders or issuances.

Effectivity

  • The order takes immediate effect upon publication in a national newspaper of general circulation.

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.