ARE THE LTFRB MEMORANDUM CIRCULAR 2019-003 ARE LEGALLY ALLOWED AS SHUTTLE SERVICE?
- Proserve Asia Businesss
- Aug 12, 2020
- 5 min read
Updated: Aug 13, 2020
On the declaration of State of Emergency by virtue of Bayanihan Heal as one Act Republic Act 11469 on its implementing rules and regulation and the Omnibus Guidelines in implementation of Quarantine Protocols throughout the country issued by Inter-Agency Task Force on Emerging Infectious Diseases (IATF-EID) allowing certain private company to Operate on limited capacity and also instructed those company to provide shuttle service for the benefit of employees and staff as part of the Quarantine Protocols.
The transport Industry are very much affected of this Pandemic as such to many Car Rental company at Transport services emerge offering point-to-point services or Shuttling service to employee especially to Business Process outsource company.
Most of the Car Rental Services that has contract with BPO and other companies allowed to operate are using the Memorandum Circular 2019-003 to think that they are in compliance with said Memorandum issued by the LTFRB and they are not in violation of Joint Administrative Order 2014 - 001 issued by both LTO and LTFRB or the Colorum Violation.
Let me Start by explaining the MC 2019-003 are they allowed to functions as Shuttle Services:
MC 2019-003, clearly stated who are private vehicle exempted o securing franchise for the Board which specifically stated on paragraph 2 and I Quote to wit:
“In order to obviate the confusion as to type of Car Rental services and/or private vehicles which are exempt from securing franchise, the Board limits the application of MC 2011-008 only to those private vehicles catering the long term lease and EXCLUDE (HINDI KASAMA) private vehicles classified as TOURIST TRANSPORT SERVICE (which Clientele may vary from time to time), SHUTTLE SERVICE, TRUCK FOR HIRE and SCHOOL SERVICE which areEXPLICITLY REQUIRED (MALINAW NA KINAKAILANGAN) to secure franchise from the board.”
The Board also stated on the MC 2019-003 that they herby amends and modify the conditions stated under MC 2011-008 to know read:
1. Private vehicle must be Covered by a long-term lease contract of not LESS THAN THREE (3) YEARS between the lessee and the Car rental Company/owner; and
2. The Vehicle must be exclusive used and driven by the lessee or his/her authorized representative.
EXPLANATIONS
MC 2019-003 limits the application and further amends and supersede MC 2011-008 only to those private vehicles catering the long term lease and EXCLUDE (HINDI KASAMA) private vehicles classified as TOURIST TRANSPORT SERVICE (which Clientele may vary from time to time), SHUTTLE SERVICE, TRUCK FOR HIRE and SCHOOL SERVICE which are EXPLICITLY REQUIRED (MALINAW NA KINAKAILANGAN) to secure franchise from the board and Private vehicle rented out are hereby exempted from coverage of the above-said Circular subject to the following conditions, furthermore the board also amended the TWO (2) conditions of the MC clarifying and with strict compliance the minimum long-term lease of contract of “NOT LESS THAN THREE (3) YEARS” and The Vehicle must be exclusive used and driven by the lessee or his/her authorized representative retained.
All of the Memorandum Circular issued by the LTFRB covering the Contract of Lease of Vehicle gives more confusion MC 2019-003 stated and I quote “Private vehicle must be Covered by a long-term lease contract of not LESS THAN THREE (3) YEARS between the lessee and the Car rental Company/owner” end of quote, long-term Contact of Lease between the LESEE (I believed this is the owner of the Vehicle) and the Car Rental Company/Owner (Lessor) on this point to many question have risen.
On the assumption that Car Rental Company (LESSOR) enter into a long-term of lease of contract with LESSEE (VAN OWNER) Thus, the Car Rental Company will used the lease vehicle into a profitable business, the Irony here MC 2019-003 EXCLUDED (HINDI KASAMA) private vehicles classified as TOURIST TRANSPORT SERVICE (which Clientele may vary from time to time), SHUTTLE SERVICE, TRUCK FOR HIRE and SCHOOL SERVICE which are EXPLICITLY REQUIRED (KAILANGAN KUMAHA). How the Car rental Company eared out of the leased vehicle if the MC prohibited the use of the Lease vehicle on the above exclusions.
There are so many interpretation and Explanation on how to use legally the MC 2019-003 but they are no official Memorandum Circular issued by the LTFRB clearly stating the facts in regards with the COL that resulted to confusion of LTFRB Stake Holders.
Are the LTFRB will issued Special Permit on the Basis only of the MC 2019-003, the answer is “NO” Land Transportation Franchising Regulatory The Board shall have the following powers and functions:
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;
To issue, amend, revise, suspend or cancel Certificates of Public Convenience or permits authorizing the operation of public land transportation services provided by motorized vehicles, and to prescribe the appropriate terms and conditions therefore;
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;
To issue preliminary or permanent injunction, 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;
To punish for contempt of the Board, both direct and indirect, in accordance with the pertinent provisions of, and the penalties prescribed by, the Rules of Court;
To issue subpoena and subpoena duces tecum and summon witnesses to appear in any proceedings of the Board, to administer oaths and affirmations;
To conduct investigations and hearings of complaints for violation of the public service laws on land transportation and of the Board’s rules and regulations, orders, decisions and/or rulings and to impose fines and/or penalties for such violations;
To review motu proprio the decisions/actions of the Regional Franchising and Regulatory Office herein created;
To promulgate rules and regulations governing proceedings before the Board and the Regional Franchising and Regulatory Office: Provided, That except with respect to paragraphs d, e, f and g hereof, the rules of procedure and evidence prevailing in the courts of laws 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;
To fix, impose and collect, and periodically review and adjust, reasonable fees and other related charges for services rendered;
To formulate, promulgate, administer, implement and enforce rules and regulations on land transportation public utilities, standards of measurements and/or design, and rules and regulations requiring operators of any public land transportation service to equip, install and provide in their utilities and 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 concerned with any aspect involving public land transportation services with the end in view of effecting continuing improvement of such services; and
To perform such other functions and duties as may be provided by law, or as may be necessary, or proper or incidental to the purposes and objectives of this Executive Order.
LTFRB have Operational and Administrate power only over all Franchised Vehicle or Public Utility Vehicle by Virtue of the Executive Order 202 and the and Public Service Act, If you are a Holder of Contract of Lease in compliance with MC 2019-003 your are considered as private vehicle and not public Utility Vehicle.
If you need assistance on how to use legally the MC 2019-003, you may contact us.
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