Law Summary
Purpose and Regulatory Intent
- To protect the riding public from unreasonable and excessive fare charges.
- To prevent the use of fake fare matrices by some operators that disadvantage passengers.
- To identify "colorum" operations (illegal or unauthorized operators) and protect legitimate operators and drivers.
- Ensures transparency and proper enforcement of fare rates as granted under Certificates of Public Convenience (CPC).
Deadline for Compliance
- Operators must apply for and secure fare matrices by August 31, 2005.
- Apprehension for non-compliance starts on September 15, 2005.
- The deadlines apply uniformly to Metro Manila Aircon and Non-Aircon PUBs, nationwide PUJs, and Provincial Non-Aircon PUBs.
Requirements for Fare Matrix Display
- Operators must display original fare matrices in their units at all times.
- Photocopied matrices are allowed only if the original can be presented for validation upon demand.
Penalties for Non-Compliance
- No Displayed or Photocopied Fare Matrix:
- First Offense: Fine of Php 500.00
- Second Offense: Fine of Php 1,000.00
- Third Offense: Cancellation of the franchise
- Display of Fake Fare Matrix:
- First Offense: Fine of Php 5,000.00 and thirty (30) day suspension of franchise
- Second Offense: Cancellation of franchise
Enforcement Mechanism
- The Land Transportation Office (LTO) Law Enforcement Service is directed to apprehend public utility vehicles without the original fare matrices displayed.
- Confiscated plates and other enforcement actions are to be processed through the Legal Division of the Land Transportation Franchising and Regulatory Board (LTFRB).
Legal Authority and Effectivity
- This memorandum circular supersedes any previous inconsistent issuances regarding the fare matrix display requirements.
- It takes effect fifteen (15) days after the filing of three (3) copies with the UP Law Center, following Presidential Memorandum Circular No. 11, dated October 9, 1992.
Emphasis on Public Convenience and Protection
- The issuance is based on the principle that public convenience is paramount in granting CPCs.
- The LTFRB underscores its role in protecting the riding public and legitimate transport service providers by ensuring compliance and penalizing violators.
Administrative Directives
- Operators are required to comply strictly within the prescribed deadlines.
- Enforcement officers must surrender confiscated plates to the LTFRB Legal Division for proper action.
Summary
- The circular regulates fare transparency through mandatory display of authorized fare matrices.
- It aims to eliminate unauthorized fare collections and fraudulent fare documents.
- Strong penalties and enforcement procedures are established to ensure adherence and protect stakeholder interests.