Law Summary
Historical Regulatory Background on Appropriation
- Memorandum Circular (MC) No. 2000-021 suspended acceptance of appropriation applications.
- MC No. 2009-035 amended this to allow appropriation applications for taxi air-conditioned service and public utility bus service.
- Subsequent suspension and lifting of the moratorium occurred regionally based on assessment and compliance.
Current Policy and Scope
- Moratorium on applications for appropriation is lifted nationwide.
- Applies only to Public Utility Buses (PUBs); other services to be covered in future issuances.
- All abandoned and expired CPCs as of December 2012 are cancelled and open for appropriation.
Definition of Abandoned CPC
- CPC considered abandoned if franchise holder fails to confirm the franchise prior to registration of authorized units with LTO for two consecutive years.
- Such abandonment results in cancellation of the franchise.
Application and Selection Procedure
- Abandoned CPCs and routes are bundled into packages for appropriation.
- Selection method includes the Premium Point-to-Point Express Bus Service project.
- Operators of abandoned/expired CPCs are disqualified from reapplying.
- Applicants must comply with consolidation requirements under Department Order No. 2017-011.
Pre-Qualification Committee
- A committee composed of key Board officials manages pre-qualification:
- Chairman: Executive Director
- Vice-Chairman: Chief of Legal Division
- Members: Chiefs of Technical, ISMD, and Administrative Divisions
- RFROs replicate this Committee at the regional level.
Unit Compliance and Service Standards
- Only units compliant with the Omnibus Franchising Guidelines (OFG) are authorized.
- Emphasizes improved service quality, passenger safety, and alignment with modernization program.
Fees and Financial Requirements
- Filing fee applies based on number of units after the first two.
- Legal Research Fund Fee is required.
- Appropriation Fee of PHP 10,000 per unit collected upon application filing from selected applicants.
Monitoring and Reporting
- Regional Franchising and Regulatory Offices (RFROs) required to submit status reports on CPC appropriation.
Legal Implications and Validity Term
- No requirement to submit registration papers or surrender plates from former grantees, facilitating smooth transition.
- New CPC/franchise granted under appropriation has a fresh validity of five (5) years from date of decision.
- Modifies, amends, or supersedes inconsistent issuances.
Effectivity
- Takes effect 15 calendar days after publication in a newspaper of general circulation.
- Compliance with filing of copies with UP Law Center as mandated.
This comprehensive framework ensures orderly and efficient allocation of abandoned or expired public utility franchises for buses, enhancing public transport service to align with modern standards and public convenience.