LTFRB was created under

Executive Order 202 dated June 19, 1987.

Powers & Functions
1. to prescribe and regulate routes of service
2. to issue, amend, revise, suspend or cancel CPC
3. to determine, prescribe and approve fare rates
4. to issue preliminary or permanent injunction
5. to punish for contempt
6. to issue subpoena and subpoena duces tecum and to summon witness to appear
7. to conduct investigations and hearings of complaints for violation of the
public service law
8. to review motu proprio the Decisions of the Regional Office
9. to promulgate rules and regulations governing proceedings before the LTFRB
10. to fix , impose and collect, and periodically review and adjust reasonable
fees and other related charges for services rendered
11. to formulate, promulgate, administer, implement and enforce rules and
regulations on land transportation public utilities, standards of measurement or
designs, and rules and regulations requiring operators of any public land
transportation service to equip, install and provide in their utilities and in their
stations.
12. to perform such other powers, functions and duties

What is public service?

Public Service Act
(b) The term "public service" includes every person that now or
hereafter may own, operate, manage, or control in the Philippines, for hire
or compensation, with general or limited clientele, whether permanent,
occasional or accidental, and done for general business purposes, any
common carrier, either for freight or passenger, or both with or without
fixed route engaged in the transportation of passengers or freight or both,
(c) The word "person" includes every individual, co-partnership, jointstock company or corporation, whether domestic or foreign, their lessees,
trustees, or receivers, as well as any municipality, province, city,
government-owned or controlled corporation, or agency of the Government
of the Philippines, and whatever other persons or entities that may own or
possess or operate public services. (As amended by Com. Act 454 and RA
No. 2677)

Section 14. The following are exempted from the provisions of the
preceding section:
(a) Warehouses;
(b) Vehicles drawn by animals and bancas moved by oar or sail,
and tugboats and lighters;
(c) Airships within the Philippines except as regards the fixing of
their maximum rates on freight and passengers;
(d) Radio companies except with respect to the fixing of rates;
(e) Public services owned or operated by any instrumentality of the
National Government or by any government-owned or controlled
corporation, except with respect to the fixing of rates. (As amended by
Com. Act 454, RA No. 2031, and RA No. 2677)
Section 15. With the exception of those enumerated in the
preceding section, no public service shall operate in the Philippines
without possessing a valid and subsisting certificate from the Public
Service Commission known as "certificate of public convenience,"
or "certificate of public convenience and necessity," as the case
may be, to the effect that the operation of said service and the
authorization to do business will promote the public interests in a
proper and suitable manner.

MEMORANDUM CIRCULAR 2011-004

Subject: 2011 Revised Terms and Conditions of CPC and
Providing
Penalties for Violations Thereof
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
project 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.
The PUV operator shall prohibit smoking or the act of carrying a lighted
cigarette or other tobacco products within the terminal/garage or inside all
PUVs and shall cause the prominent display of the No Smoking signs
within the premises of the terminal/garage 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 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.
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.

It shall be unlawful for any PUV operator to cause, allow or in any

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, allow or in any other manner help or consent to the
operation of the same or of any other equipment, under his/her/its CPC.
The PUV operator shall operate the unit/s authorized and registered
pursuant to the authority granted only on the route authorized in the
CPC unless otherwise authorized by the Board.
The PUV operator shall not allow any motor vehicle belonging to
others to be registered and/or operated under the CPC granted. (kabit
system)
The PUV operator shall not allow any illegal transfer of motor vehicle
plate/s or illegally reproduce the same (known as kambal plaka) for the
use by unauthorized motor vehicle units.

Penalties for Kabit System and Kambal Plaka

1st Offense -Suspension of CPC where unit involved is included
for a period of six (6) months
2nd Offense -Cancellation of CPC where unit involved is included
3rd Offense -Cancellation of all CPCs and perpetual
disqualification to be a grantee of CPC for any mode
of transport
The PUV operator shall not allow the illegal use or transfer of chassis or
engine motor (known as pukpok chassis) for the use of unauthorized
PUVs.
29. The PUV operator shall employ drivers, conductors, inspectors and
other personnel who are courteous and of good moral character. In no
case shall the PUV operator employ any person who has been convicted
by a competent court of homicide and/or serious physical injuries, theft,
estafa, robbery and crimes against chastity, unless with prior written
approval by the Board.

30. PUV operators are prohibited from employing drivers who do not
have a valid professional drivers license and appropriate restriction
code.
31. The PUV operator and their drivers shall attend trainings/seminars
on transport management, road safety and good driving habits to be
conducted/accredited by the Board.
32. Before accepting or hiring drivers and conductors, the PUV operator
shall subject them to orientation and rigid examinations pursuant to
existing laws, policies, rules and regulations. In the course of
employment, the PUV operator shall at his/her/its own expense,
mandatorily conduct or cause the conduct of training and/or seminars of
his/her/its drivers, conductors/ress, inspectors and other concerned
personnel.
36. The PUV operator shall seek confirmation of his/her/its franchise
with the Board prior to registration of the authorized unit/s with the Land
Transportation Office. Failure to confirm for two (02) consecutive years
shall result in the cancellation of franchise.

44. Accident. The PUV operator shall keep a record, in chronological

order, of all accidents that may occur in connection with the operation
of PUVs, including the nature, causes, consequences and measures
undertaken to avoid recurrence (including financial assistance or help
to accident victim/s). A detailed report should be submitted to the Board
on/or before the 10th day of the following month. Failure to do so shall
be subject to the penalties as may be imposed by the Board on the
erring PUV operator.
45. Accidents which result in the death or physical injuries shall be
reported to the Board within seventy-two (72) hours from their
occurrence. Failure to do so shall be subject to the penalties as may be
imposed by the Board on the erring PUV operator.
46. In cases of accidents resulting to death or physical injuries, the
Board may, prior to the hearing, suspend for a period not exceeding
thirty (30) days any certificate of public convenience granted, whenever
it is necessary to avoid further injuries or damages, which may result in
the continued operation of the business.

47. HIT & RUN

- All PUV operators, drivers, and/or conductors
shall render immediate assistance to the victim/s of accidents by
bringing them to the nearest hospital for medical assistance, or
immediately report the accident to the nearest police station for
investigation.
Failure to do so shall be deemed HIT AND RUN
accident and shall cause the suspension for a period of thirty (30)
days of all the authorized units under the franchise number where
the involved motor vehicle is included.

1st Offense fine of P2,000.00

2nd Offense fine of P3,000.00 with suspension of CPC for sixty (60)
days and confiscation of for hire plates
3rd Offense fine of P5,000.00 and cancellation of CPC

MEMORANDUM CIRCULAR 2012-007

Subject: Amendment to MC2011-014, re:
SAFETY COMPLIANCE ORDERS
If it is shown by an official police report or any other convincing
evidence that the accident was due solely to the fault or negligence
of the PUVs driver, the Operator concerned shall cause all the
drivers of his entire fleet to undergo ROAD SAFETY SEMINAR
conducted by any government or private entity accredited by the
LTFRB within thirty (30) days from receipt of the safety compliance
order; cause all the drivers of the entire fleet to undergo DRUG
TESTING by a drug testing center duly accredited by the
Department of Health and Land Transportation Office, within thirty
(30) days from receipt of said order.

If it is shown by an official police report or any other convincing

evidence that the accident was caused by mechanical failure or
improper vehicle maintenance of the vehicle involved, the operator
concerned shall subject the entire fleet for ROADWORTHINESS
INSPECTION by the LTO-MVID or any other qualified entity within ten
(10) days from receipt of the Safety Compliance Order, and submit
among other proofs, a video clipping of such roadworthiness
inspection in the presence of a duly authorized representative from the
LTO and LTFRB.
The foregoing requirements shall be applicable on a per incident basis
regardless of time lapses from the last previous inspection, seminar or
drug test conducted.
Failure to comply strictly with any of the foregoing provision and/or to
submit proofs of compliance therewith shall be sufficient grounds for
the suspension or cancellation of the franchise of the operators entire
fleet.

Memorandum Circular 2012-022 subject:

Granting of Provisional Authority for Trucks for Hire Transport
Service
If an Applicant for TH Service intends to be given provisional
authority, the necessary pleading should be filed together with the
application for TH Transport Service.
The Application should include all the documentary requirements
(including valid and existing Hauling Contract, sketch/dimensions of
garage and the corresponding TCT or Contract of Lease).
Applicant shall submit the Certificates of Registration (CR) and
Official Receipt (OR) in the name of applicant, and Stencil of Chassis
and Motor Numbers to prove the existence of all units. No pro-forma
invoice, sales receipts or delivery receipts shall be allowed.
The Applicant should submit the corresponding Comprehensive
Insurance Coverage for each unit covered by the application.

The applicant shall likewise pay the necessary fees for the request for
Provisional Authority.
Upon evaluation of the documents submitted, the corresponding Order
shall be issued by the Office where the application was filed. The Order
should state the period covered by the Provisional Authority. A copy of the
Order granting Provisional Authority shall be attached to the application.
The Provisional Authority shall only be for a period of not more than
THREE (3) MONTHS from the date the application was filed. Upon
subsequent request by applicant, an extension for Provisional Authority
may be allowed only once but such extension shall not be more than ONE
(1) MONTH.

The issuance of Provisional Authority does not automatically mean the

granting of the Application for TH Transport Service.

HIRING OF DRIVERS & CONDUCTORS

- PUV Operators
a.) MANAGEMENT PREROGATIVE
- Operators exercise supervision and control over their
drivers/conductors and operation of their business in accordance with
the policy of LTFRB
b.) Theory of RESPONDEAT SUPERIOR
- PUV operators shall be deemed likewise responsible for
the violations of their drivers because of the EMPLOYER
EMPLOYEE RELATIONSHIP
- Before accepting or hiring drivers and conductors, the
PUV operator shall subject them to orientation and rigid examinations
- in the course of employment, the PUV operator shall at
his own expense, mandatorily conduct or cause the conduct of training
and/or seminar of his drivers, conductors, inspectors and other
concerned personnel

 While prime mover and trailer are considered

two units for registration purposes, they are
considered as one for criminal or civil suit
because they are unified in their movement.
The act of the prime mover is the act of the
trailer, otherwise, there is confusion in
pinpointing responsibility.

 If there is a civil indemnity, if convicted and

the Driver cant pay, both are subsidiarily
liable as they are deemed joint owners of the
prime mover and trailer if criminal case is
filed
If the case is quasi-delict or civil no preexisting contract the suit or liability should
be as both as joint owners along with the
Driver of the prime mover

 TH Applications with trailers/chassis units is

allowed provided that there are a majority or
reasonable ratio of tractor heads/trucks.
Applications for TH Service with only
trailers/chassis as proposed. Unless the
Applicant can show that it has been a previous
grantee of TH franchise authorizing tractor
heads.