Purpose and guiding policy
- The LTFRB establishes a standing policy for applications seeking extension of validity of expired franchises in the interest of public service.
- The policy governs the terms and conditions for filing applications for extension of validity of expired CPCs of all types of services/denominations.
Timing for filing extension applications
- As a rule, applications for extension of validity must be filed six (6) months prior to the date of expiration of the CPC.
- As an exemption, only CPCs that expired within one (1) year after the date of expiration are accepted for filing.
- The circular sets a continuing instruction after December 31, 2009: CPC holders must file their Application/s for Extension of Validity within six (6) months prior to the expiry date of the franchise.
- The circular defines the date of filing as the date when the applicant/petitioner (1) has paid the fees assessed by the LTFRB and (2) the LTFRB receives the application/petition filed.
Penalties for late filing
- For CPCs accepted under the one-year exemption, a regular penalty for late filing of PHP 500.00 per unit and per month is charged.
- In addition to the regular penalty, these additional penalties apply:
- Jitneys and Sedans: PHP 500.00/unit
- AUVs, Vans, Coasters and Mini Buses: PHP 750.00/unit
- Buses and Trucks: PHP 1,000.00/unit
Limitations after approval under exemption
- Approved applications under the one-year exemption category do not allow filing for sale and transfer and/or dropping and substitution of units within two (2) years from the date of issuance of the decision.
- This two-year restriction has the following exceptions:
- Dropping and substitution for dropping of phased out unit/s, or in conformity with modernization standards of DOTC and the LTFRB
- Replacement due to a carnapped/stolen unit, provided a Police Report or Certificate of non Recovery is presented
- Replacement due to an accident causing destructive loss (total wreck) rendering the unit unserviceable
Effect of missed filing periods
- Failure to file an application for extension of validity within the periods stated in the policy prevents CPC holders with expired CPCs from filing an Application for Extension of Validity.
Motion practice and filing windows
- No Motion to allow late filing of an application for extension of validity is accepted or entertained by the LTFRB.
- If the last day of filing falls on Saturdays, Sundays, holidays, or non working days when transaction with the government is not available, the applicant may file on the next working day without any imposable penalty.
Supersession and amendment
- All issuances inconsistent with LTFRB Memorandum Circular No. 2009-006 are superseded and amended accordingly.
Duration and adoption
- The circular is adopted on February 20, 2009.
- The circular is signed by Thompson C. Lantion as Chairman and Gerardo A. Pinili and Ma. Ellen Dirige-Cabatu as Board Members.