Implementing Guidelines on the Acceptance of Application for a Certificate of Public Convenience to Operate Transport Network Vehicle Service

October 23, 2017

LTFRB MEMORANDUM CIRCULAR NO. 017-A-15

ON 21 JULY 2016 THE BOARD ISSUED MEMORANDUM CIRCULAR NO. 2016-008 ORDERING THE MORATORIUM ON ACCEPTANCE OF TRANSPORT NETWORK VEHICLE SERVICE (TNVS) APPLICATIONS FOR FRANCHISE.

ON 01 SEPTEMBER 2016, MEMORANDUM CIRCULAR No. 2016-012 WAS ISSUED EXPANDING THE COVERAGE OF THE MORATORIUM AND IMPLEMENTED A NATIONWIDE MORATORIUM ON THE ACCEPTANCE OF TNVS APPLICATIONS. ATICcS

AFTER A SERIES OF MEETINGS, CONSULTATIONS, DIALOGUES WITH ALL CONCERNED PARTIES AND AFTER EXHAUSTIVE AND THOROUGH DELIBERATION AND REVIEW, THE BOARD HEREBY AMENDS THE PROVISIONS OF MEMORANDUM CIRCULAR No. 2015-017 WHICH IS REITERATED WITH THE HIGHLIGHTED AMENDMENTS INCORPORATED THEREIN FOR EASY REFERENCE.

Pursuant to Department Order No. 2015-11 (Re: Further Amending Department Order No. 97-1097 to Promote Mobility), the following guidelines for the Acceptance of Application for the Issuance of a Certificate of Public Convenience (CPC) to Operate a Transportation Network Vehicle Service are hereby promulgated:

A. REQUIREMENTS

1. The following are the requirements for the Applicant:

a.) 5 copies of Verified Application;

b.) Photocopy of Proof of Filipino Citizenship/Articles of Incorporation;

c.) Photocopy of Proof of good Standing with a Transportation Network Company (TNC);

d.) Photocopy of Passenger Insurance Policy issued by the Board's accredited insurance providers;

e.) List of TNVS Drivers and TNVS vehicles;

f.) 2 Copies of duly accomplished Operator's Data Sheet with recent 2 x 2 picture of operator;

g.) Accomplished Copy of Statement of Financial Capability Form and proofs of entries thereof;

h.) Income Tax Return duly filed with the Bureau of Internal Revenue (BIR) or BIR Certificate of Registration;

i.) Certificate of Business Name issued by the Department of Trade and Industry;

j.) Location Map of garage or address of operator;

k.) If the applicant is the owner of the garage, Transfer Certificate of Title (TCT)/Tax Declaration in the name of the applicant; if not notarized Contract of Lease/Authority to use with TCT of Lessor;

l.) LGU Zoning Clearance for the location of the garage for applicants with three (3) units;

m.) Inspection Report with picture of unit taken during inspection.

2. The following are the requirements for the Applicant's Driver/s:

a.) Proof of Accreditation of the Driver by a TNC;

b.) Proof that driver is a holder of professional driver's license;

c.) Clearance of the driver/s issued by the National Bureau of Investigation; and

d.) Clearance of the driver/s issued by the Philippine National Police.

3. The following are the requirements for the Applicant's vehicle/s:

a.) Proof of Accreditation of the Vehicle by a TNC.

b.) Original Copy of the Official Receipt (OR) and Certificate of Registration (CR) of the Motor Vehicle. In the event that the original copy of the OR/CR is in the custody of a Financial Institution, to submit a Bank certification attesting to such fact and to certify that the Financial Institution conforms to the use of the vehicle as a PUV.

c.) Maximum number of authorized units (NAU) shall not be more than three (3) per applicant. For applications separately filed by married spouses, the rule on maximum NAUs shall apply.

For this purpose, the Application may be accepted provided the citizenship requirement, proof of good standing with a TNC, and proof of accreditation of the vehicle are submitted. Photocopies of the required documents may be accepted at the time of filing of the Application; but original copies thereof shall be presented at the time of the hearing for verification and authentication purposes.

B. FILING FEE

The Filing Fee of each Application shall be Five Hundred Ten Pesos (Php510.00) for the first two (2) applied units and Ten Pesos (Php10.00) as Legal Research Fee. An additional Seventy Pesos (Php70.00) per unit shall be paid in excess of first 2 applied units. TIADCc

C. PROVISIONAL AUTHORITY

A Provisional Authority (PA) may be issued for a period of forty-five days upon acceptance of the application as a transition period for this type of service, provided a photocopy of the passenger insurance policy is submitted.

An additional amount of Two Hundred Sixty Pesos (Php260.00) shall be paid by the applicants if they pray for the issuance of PA in the Application or in a separate motion.

D. VALIDITY OF THE CPC

The CPC shall be valid for two years and may be renewed. Its validity and renewal shall be dependent on the good standing of the operator or driver with the TNC. In the event that the operator or driver is certified as no longer in good standing by the TNC during the validity of the CPC, the grantee shall be issued Show Cause, and Cease and Desist Orders.

E. ACCEPTANCE BY THE REGIONAL OFFICES

The Regional Franchising and Regulatory Offices of this Board may accept and approve Applications of this type including issuance of PA, subject to compliance with jurisdictional authority. However, all applications, proposing to operate within or touching Metro Manila, shall be filed at the Central Office. Applications for CPC covering Inter-Regional routes may be filed at the RFRO where the applicant is based which shall be forwarded to the Board for approval.

Any motor vehicle owner found violating the provisions of Item No. 4 of Department Order No. 2015-11 and this Circular shall be penalized in accordance with the provisions of Joint Administrative Order No. 2014-001 and other existing issuances.

All other issuances inconsistent herewith are deemed modified or superseded accordingly.

This Memorandum Circular shall take effect immediately following its publication in at least one newspaper of general circulation. Let three (3) copies hereof be filed with the UP Law Center pursuant to Presidential Memorandum Circular No. 11, dated 09 October 1992.

SO ORDERED.

Quezon City, Philippines, October 23, 2017.

(SGD.) ATTY. MARTIN B. DELGRA IIIChairman

(SGD.) ENGR. RONALDO F. CORPUSBoard Member

(SGD.) ATTY. AILEEN LOURDES A. LIZADABoard Member

Attested by:

(SGD.) ATTY. AUGUSTINE M. VESTIL JR.Executive Director