Republic of the Philippines

RECEIVED “
IS one 25 NOV 2013

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
FIRST REGULAR SESSION

HOUSE BILL NO.3415

Introduced by Honorable Oscar “Richard” S. Garin, Jr.
1° District, lloilo

“AN ACT GRANTING POWER TO CITIES AND MUNICIPALITIES
TO GRANT CERTIFICATES OF PUBLIC CONVENIENCE TO
PUBLIC UTILITY VEHICLES (PUVs) PLYING A ROUTE
EXCLUSIVELY WITHIN THEIR TERRITORIAL JURISDICTIONS,
AMENDING SECTION 447 (3) (vi) AND SECTION 458 (3) (vi) OF
REPUBLIC ACT No. 7160, AND FOR OTHER PURPOSES”

EXPLANATORY NOTE

Presently, the most common mode of transportation within the territorial
jurisdiction of a local government unit, especially in the rural areas, are tricycles
and single motorcycles for hire commonly known as “habal habal.” Each of these
modes of transportation has its advantages and drawbacks. The drawbacks are
mostly safety concerns, most significantly, the high incidence of traffic accidents
involving these modes of transportation. Thus, the Department of the Interior and
Local Government issued Memorandum No. 2007-01 and 2011-68 which, in
essence, sought to ban tricycles in national highways used by four-wheeled
vehicles exceeding four (4) tons in weight and where the normal speed would
exceed forty (40) kilometers per hour

If this ban, which apparently has for its purpose the safety of the vast majority of
the public, those who cannot afford private means of transportation, is to be
given full effect, and thus confine tricycle routes to provincial, municipal and
barangay roads, what becomes of the riding public whose residences are located
in the vicinity of national roads? This is the gap which the Bill seeks to address
To allow four-wheeled public utility vehicles to ply within the territorial limits of a
local government unit


The proposed measure is consistent with the concept of devolution and
decentralization enshrined in the 1987 Constitution and in the Local Government
of 1991. It enables local governments to quickly respond to the fast-changing
“situation on the ground” as well as enable them to increase revenue collection

Finally, this proposed measure is, by and large, aimed towards promoting better
road safety for the riding public as well as encourage trade and commerce. By
allowing four-wheeled vehicles to ply a route exclusively within the territorial
jurisdiction of a local government unit, taking public conveyance from point A to
point B would become a usual business transaction rather than a daily exercise
of tempting one’s fate.

It is earnestly prayed that this measure be given due consideration.



Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS.
FIRST REGULAR SESSION

HOUSE BILL NO8. 415

Introduced by Honorable Oscar “Richard” S. Garin, Jr.
1" District, lloilo

“AN ACT GRANTING POWER TO CITIES AND MUNICIPALITIES
TO GRANT CERTIFICATES OF PUBLIC CONVENIENCE TO
PUBLIC UTILITY VEHICLES (PUVs) PLYING A ROUTE
EXCLUSIVELY WITHIN THEIR TERRITORIAL JURISDICTIONS,
AMENDING SECTION 447 (3) (vi) AND SECTION 468 (3) (vi) OF
REPUBLIC ACT No. 7160, AND FOR OTHER PURPOSES”

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

Section 1. Declaration of Policy. ~ It is hereby declared the policy of the State
to enhance the autonomy of local government units to make them more
responsive to the changing times thereby making them more accountable to
promote the general welfare of their constituents. Toward this end, the State
shall further empower local governments through an enhanced system of
decentralization whereby local government units shall be given more powers,
authority, responsibilities, and resources.

Section 2. Scope of this Act. — This Act shall cover all public utility vehicles
which a route exclusively within a territorial jurisdiction of a city or municipality.

Section 3. Registration and Issuance of license plates. — The Land
Transportation Office may register any motor vehicle covered by this Act and
issue a corresponding license plate thereto pursuant to Republic Act No. 4136
and existing laws, rules and regulations.

Section 4. Power of the LGU to issue CPC. — Upon effectivity of this Act,
public utility vehicles covered herein shall secure a Certificate of Public
Convenience from the Local Government Unit concerned. For this purpose:


a. Section 447 (3) (vi) of Republic Act 7160 otherwise known as the Local
Government Code is hereby amended to read, as follows:

“(vi) Subject to the guidelines prescribed by the Department of
Transportation and Communications, regulate the operation of
tricycles and public utility vehicles and grant franchises for the
operation thereof within the territorial jurisdiction of the

municipality;

b. Section 458 (3) (vi) of Republic Act 7160 otherwise known as the Local
Government Code is likewise amended to read as follows:

“(vi) Subject to the guidelines prescribed by the Department of
Transportation and Communications, regulate the operation of

tricycles and public utility vehicles and grant franchises for the
operation thereof within the territorial jurisdiction of the city;”

Section 5. Creation of the Local Franchising and Regulatory Offices. -
There shall be a Local Franchising and Regulatory Office (LFRO) created in
each city and municipality which shall be headed by a permanent employee of
the Local Government Unit as may be designated or appointed by the Mayor.
The LFROs shall hear applications/petitions for routes and shall recommend to
the Sanggunian the approval or disapproval of such application/petition.
Provided, however, that the Sanggunian shall not be bound by the
recommendation of the Board and, upon good cause, may grant the Certificate
of Public Convenience by way of an ordinance or may deny such
application/petition by way of a resolution. Provided further, that any party
adversely affected by the decision of the Sanggunian may take an appeal with
the appropriate Regional Office of the Land Transportation Franchising and
Regulatory Board

Section 6. Powers and Functions of the Local Franchising and Regulatory

Office. - The Board shall have the following powers and functions:

a. To prescribe and regulate routes of service, economically viable
capacities and zones or areas of operation of public land transportation
services provided by motorized vehicles in accordance with the public land


transportation development plans and programs approved by the
Department of Transportation and Communications;

b. To issue, amend, revise, suspend or cancel Certificates of Public
Convenience or permits authorizing the operation of motorized vehicles as
defined in this Act, and to prescribe the appropriate terms and conditions
therefor;

c. To determine, prescribe and approve and periodically review and adjust,
reasonable fares, rates and other related charges, relative to the operation
of public land transportation services provided by motorized vehicles;

d, To issue preliminary or permanent injunctions, whether prohibitory or
mandatory, in all cases in which it has jurisdiction, and in which cases the
pertinent provisions of the Rules of Court shall apply;

e. To punish as for contempt of court, both direct and indirect, upon
application with the Municipal Trial Court;

f. To issue subpoena and subpoena duces tecum and to summon
witnesses to appear in any proceedings of the Board, to administer oaths
and affirmations;

g. To conduct investigations and hearings of complaints for violation of the
public service laws on land transportation and of its rules and regulations,
orders, decisions and/ or ruling and to impose fines and/ or penalties for
such violations;

i. To adopt rules and regulations governing proceedings before the
Regional Franchising and Regulatory Office of the LTFRB. Except in pars
d, e and g hereof, the rules of procedure and evidence prevailing in the
courts of law should not be controlling and it is the spirit and intention of
said rules that the Board and the Regional Franchising and Regulatory
Offices shall use every and all reasonable means to ascertain facts in its
case speedily and objectively and without regard to technicalities of law and
procedures, all in the interest of due process;


j. To fix, impose and collect, and periodically review and adjust, reasonable
fees and other related charges for services rendered. Provided that, LGUs
may not impose and collect such fees not presently imposed and collected
by the LTFRB, except administrative fees

k. To formulate, promulgate, administer, implement and enforce rules and
regulations on land transportation public utilities, standard of
measurements and/ or design, and rules and regulations requiring
operators of any public land transportation service to equip, install and
provide in their stations such devices, equipment facilities and operating
procedures and techniques as may promote safety, protection, comfort and
convenience to persons and property in their charges as well as the safety
of persons and property within their areas of operations;

|. To coordinate and cooperate with other government agencies and entities
concermed with any aspect involving public land transportation services with
the end in view of effecting continuing improvement of such services; and,

m. To perform such other functions and duties as may be provided by law
or ordinance as well as those powers which are proper or incidental to the
purposes and objectives of this Act

Section 7. Basic regulations of a CPC. — The Certificate of Public
Convenience issued by the Local Franchising and Regulatory Office under
this Act shall contain the following:

a. The PUV operator shall ensure that the commuting public has adequate,
safe, convenient, environment-friendly and dependable public land
transportation services at reasonable rates through the strict
implementation of land-based transportation policies, programs, and
projects responsive to an investment-led and demand-driven industry, and
in adherence to the provisions of the Clean Air Act and other related

environmental laws.

b. The PUV operator shall prohibit smoking or the act of carrying a lighted
cigarette or other tobacco products within the terminal, garage and parking
or waiting area or inside all PUVs and shall cause the prominent display of
the "No Smoking" signs within the premises thereof and inside all PUVs.


¢. The PUV operator shall not resort to cessation of service as a sign or
demonstration of protest against any government decision or action under
pain of suspension or cancellation of the authority to operate granted by the
Board nor shall the PUV operator tolerate, allow or authorize personnel to
join others committing acts prejudicial to the riding public, including, but not
limited to, paralyzing transport services by intimidation, coercion or
violence.

d. The PUV operator shall give his/her/its customers or users, all
information and assistance pertaining to his services in order that they may
secure proper, efficient and economical service.

e. It shall be unlawful for any PUV operator to give undue preferences or
make unjust discrimination in his/herits service.

f, Except for PUJs, the PUV operator shall adopt a commercial, trade or
business name duly issued by any authorized government agency subject
to the approval of the Board.

g. Should the PUV operator decide to adopt its own trade/company design,
color scheme or combination of colors distinct from what is required by the
Board such as in the case of (but not limited to) unit markings, uniforms and
the like, the same should be subject to prior approval of the Board

h. The installation of transit advertising materials and other types of
markings on public utility vehicles shall be subject to the prior approval of
the Board.

i. It shall be unlawful for any PUV operator to cause, allow or in any other
manner help or consent to the registration in his/her/its name, fictitiously,
surreptitiously or otherwise any equipment belonging to another person
and/or to cause or allow or in any other manner help or consent to the
operation of the same or of any other equipment, under his/her/its
Certificate of Public Convenience.

j. The PUV operator shall charge the passenger and freight rates as
authorized by the Board. In no case shall fares lower or higher than those


authorized be charged without previous authority from the Board. The PUV
operator shall post a copy of the Fare Matrix in a conspicuous place at
his/her/its office, terminal or waiting stations, and in the interior of each
motor vehicle which is in actual service

k. Children less than 1 meter in height shall be transported free of charge
and those from 1 to 1.30 meters in height shall pay half fare. PUV operators
shall provide in an adequate place in their motor vehicles the necessary
markings for verifying the heights of the children passengers who are
entitled to free or half fare.

|. The PUV operators shall grant fare discounts as prescribed by law,
policies, rules and regulations to Senior Citizens and Persons with
Disability

m. The PUV operator shall grant fare discounts to Students during school
days and shall cover only those currently enrolled in Pre-school,
Elementary, Secondary and Collegiate schools, including academic,
vocational or technical schools duly recognized by the Government
EXCEPT: those of dancing and driving schools, short term courses of
seminar type, and Post-graduate studies (those taking up medicine, law,
masteral, doctoral degrees and the like).

n, The PUV operator shall not deprive passengers granted fare privileges
and discounted fares with appropriate seats

©. The PUV operator shall display the International Symbol of Accessibility
in their units and shall designate seats in all their units specifically for the
use of Persons with Disabilities as follows:

1. Owners of PUJs shall provide at least two (2) seats, at the
convenience of the PWD | for the use of PWDs in their units.

2. Other passengers may use those designated seats if not
occupied but shall yield them to incoming PWDs whenever the

occasion arises.


Section 8. Penalties. — Any law to contrary notwithstanding, the penalties which
may be imposed by the LGUs upon erring applicants or holders of CPCs shall
not exceed the power to impose penalties for violation of ordinances granted
upon them by the Local Government Code of 1991. Provided, that the penalty of
cancellation of franchise and perpetual or special disqualification from applying
for a franchise may be imposed upon repeat offenders.

Section 9. Implementing Rules and Regulations, - The Department of
Transportation and Communication and the Department of Interior and Local
Government, in consultation with the concerned Senate and House committees
and other agencies shall formulate implementing rules and regulations pertinent
to the provisions hereof within six (6) months after the effectivity of this Act

Section 10. Repealing Clause. — All laws, issuances or any party thereof
inconsistent with this Act are hereby repealed or modified accordingly

Section 11. Effectivity. — This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in at least two (2) national

newspapers of general circulation,

Approved,