SC: NOTICE AND HEARING ARE REQUIRED FOR LRT/MRT

FARE INCREASE

Any increase in the fares for the Light Rail Transit (LRT) Lines 1 and 2 and the
Metro Rail Transit (MRT) Line 3 require prior notice and hearing to be valid.

While the fare increase took effect only on December 20, 2014, the Court held
that the previous public consultations substantially served the purpose of the
hearing requirement under the law, as the proposed fare structure was retained
and the original basis and purpose for the proposed hike remained the same.
notice for the public consultation scheduled on December 12, 2013.0 per
kilometer of distance traveled.

In dismissing the petitions, the Supreme Court ruled that prior notice and
hearing are required in the fixing of rates by administrative agencies.

The Court clarified that while under the 1964 case of Vigan Electric Light
Company v. Public Service Commission, no notice and hearing are required in the
administrative agencies’ exercise of quasi-legislative functions, this rule does not
apply when there is a law that expressly requires notice and hearing.

In the case of fixing rates, while this is considered a quasi-legislative function, the
Administrative Code of 1987 expressly requires that there be prior notice and
hearing in rate-fixing, with the notice to be published at least two weeks before
the hearing. Hence, such requirements must be complied with for any increase in
LRT and MRT fares to be valid.

The Court also found that the DOTC substantially complied with the notice and
hearing requirements for D.O. 2014-014. The agency published a Notice of Public
Consultation on January 20 and 27, 2011 in two newspapers. On February 4 and
5, 2011, the public consultations were held. In 2013, the DOTC published anew a
notice for the public consultation scheduled on December 12, 2013.

While the fare increase took effect only on December 20, 2014, the Court held
that the previous public consultations substantially serve the purpose of the
hearing requirement under the law, as the proposed fare structure was retained
and the original basis and purpose for the proposed hike remained the same.

On the issue of whether the DOTC and the LTRA have the power to increase LRT
and MRT fares, the Court held that it is well-established in jurisprudence that the
rate-fixing power of administrative agencies is a valid delegation of legislative
power in response to the growing complexity of society, the multiplication of
government regulation subjects, and the increased difficulty of administering
laws.

Any increase in the fares for the Light Rail Transit (LRT) Lines 1 and 2 and the
Metro Rail Transit (MRT) Line 3 requires prior notice and hearing to be valid.