LTFRB Rules on Public Transport Regs, CPC Issuance

Certificate of Public Convenience (CPC): Authorization by LTFRB for operating land transport services.
Filipino Citizenship: Applicant or majority ownership must be Philippine citizens, minimum 60% capital.
Financial Capability: Ability to sustain operations and meet accident claims.
Public Interest: Benefits the public by enhancing service quality, range, fares, and competition.
Authorized Route: Approved origin-destination pair via public roads.
Monopoly: Exclusive operation or control by one or group causing no effective competition.
Development Route: Light traffic routes lacking service, with developmental potential and political/social desirability despite possible financial non-viability.
Franchise Operator: Holder of a valid CPC.
Prior Operator / Applicant: Existing authorized operator or first applicant with priority.
Protection of Investment: Conservation of prior investments.
Withdrawal/Abandonment of Service: Suspension or cessation of service in authorized routes.
Replacement/Substitution: Vehicle replacement for lost or obsolete units.
First Class Service: Non-aircon bus with standard seats and route stops.
Premier Service: Non-aircon bus with reclining seats, direct non-stop service.
Addition/Expansion: Adding vehicle units in the route.
Route Measured Capacity: Theoretical demand for vehicles per route.
Quality of Service: Standards to ensure adequate, efficient, comfortable public utility service.

Applicant must be Philippine citizen or corporation with 60% Philippine ownership.
Applicant must be financially capable of operating the service.
Applicant must show that the operation promotes public interest effectively and suitably.

Public need dictates CPC issuance, with presumption in favor of the applicant.
Entry and Exit:
- Liberalized entry to enhance competition and service quality.
- Monopolized routes must have at least 2 operators; additional operators allowed.
- Development routes served by new operators with investment protection for 2 years.
- Additional operators allowed if they provide efficiency, innovation, or respond to demand.
- Operators forfeiting service for 1 month+ may lose CPC.
- Withdrawal requires 15 days' prior notice.
Vehicle Replacement and Expansion:
- Replacement with bigger capacity or adding units upon LTFRB approval.
Multi-route Operations:
- Allowance for changes in route patterns subject to rules.
Terminal Sharing:
- Encouraged in line with LGU policies under Local Government Code.
Quality and Safety Standards:
- Continuous upgrades mandated.
- Higher vehicle insurance limits per judicial compensation rulings.
- Mandatory annual vehicle inspections via LTO’s MVIS System.
- Separate driver examination systems for passenger and freight public utility vehicles by 1995.

Liberalized pricing introducing competition aligned with service quality.
Fares require prior notice and public hearing.
Fare adjustments:
- Existing fare ranges for buses widened in 1994 (+20%, -25%) with indicative reference rates replacing fixed rates.
- Air-conditioned buses fare systems liberalized to first class and premier services.

Two basic financial criteria:
1. Sufficient working capital for start-up and sustainability (actual assets minus liabilities should meet required working capital).
2. Adequate insurance or financial reserves to meet accident claims.
LTFRB may require capital increases if deficiency found, with proof under oath.

Vehicles must be roadworthy, maintained, and meet safety and service standards.
Operators responsible for safe and efficient service provision.
LTFRB only allows vehicles meeting established standards.
Route Measured Capacity (RMC) used as guide, not absolute limit, allowing service in excess if justified by public need.

Non-compliance with guidelines may result in denial of CPC application.
Additional penalties under the Public Service Act and LTFRB rules after due process.

Effective 15 days after publication in a newspaper of general circulation in the Philippines.