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EXECUTIVE ORDER NO.

202

EXECUTIVE ORDER NO. 202 - CREATING THE LAND TRANSPORTATION


FRANCHISING AND REGULATORY BOARD

WHEREAS, the Department of Transportation and Communications is vested


with, among others, quasi-judicial powers and functions pursuant to
Executive Order No. 125, as amended;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do


hereby order:

Section 1. Creation of the Land Transportation Franchising and Regulatory


Board. — There is hereby created in the Department of Transportation and
Communications, the Land Transportation Franchising and Regulatory Board
hereinafter referred to as the “Board”.

Sec. 2. Composition of the Board. — The Board shall be composed of a


Chairman and two (2) members with the same rank, salary and privileges of
an Assistant Secretary, all of whom shall be appointed by the President of the
Philippines upon recommendation of the Secretary of Transportation and
Communications. One (1) member of the Board shall be a member of the Bar
and shall have engaged in the practice of law in the Philippines for at least five
(5) years, another a holder of a degree in civil engineering, and the other a
holder of a degree in economics, finance or management both with the same
number of years of experience and practice.

Sec. 3. Executive Director and Support Staff of the Board. — The Board shall
have an Executive Director who shall also appointed by the President of the
Philippines upon the recommendation of the Secretary of Transportation and
Communications. He shall have the rank, salary and privileges of a
Department Service Chief. He shall assist the Board in the performance of its
powers and functions.

The Board shall be supported by the Technical Evaluation Division, Legal


Division, Management Information Division, Administrative Division and
Finance Division.

Sec. 4. Supervision and Control Over the Board. — The Secretary of


Transportation and Communications, through his duly designated
Undersecretary, shall exercise administrative supervision and control over the
Land Transportation Franchising and Regulatory Board.
Sec. 5. Powers and Functions of the Land Transportation Franchising and
Regulatory Board. — 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 public land
transportation services provided by motorized vehicles, 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 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;

e. 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;

f. To issue subpoena and subpoena duces tecum and 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 the Board’s rules and
regulations, orders, decisions and/or rulings and to impose fines and/or
penalties for such violations;

h. To review motu proprio the decisions/actions of the Regional Franchising


and Regulatory Office herein created;

i. 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;

j. To fix, impose and collect, and periodically review and adjust, reasonable
fees and other related charges for services rendered;

k. 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;

l. 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

m. 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.

Sec. 6. Decision of the Board; Appeals therefrom and/or Review thereof . —


The Board, in the exercise of its powers and functions, shall sit and render its
decisions en banc. Every such decision, order, or resolution of the Board must
bear the concurrence and signature of at least two (2) members thereof.

The decision, order or resolution of the Board shall be appealable to the


Secretary within thirty (30) days from receipt of the decision: Provided, That
the Secretary may motu proprio review any decision or action of the Board
before the same becomes final.

Sec. 7. Creation of Regional Franchising and Regulatory Offices. — There shall


be a Regional Franchising and Regulatory Office in each of the administrative
regions of the country which shall be headed by a Board Regional Manager
having the rank, salary and privileges of a Department Assistant Regional
Director. The Regional Franchising and Regulatory Offices shall hear and
decide uncontested applications/petitions for routes, within their respective
administrative regions: Provided, That applications/petitions for routes
extending their respective territorial jurisdictions shall be heard and decided
by the Board.

Sec. 8. Appeals. — The decisions, orders or resolutions of the Regional


Franchising and Regulatory Offices shall be appealable to the Board within
thirty (30) days from receipt of the decision.

Sec. 9. Appropriations. — Funds needed to carry out the provisions of this


Executive Order shall be taken from the funds available in the Department of
Transportation and Communications. Thereafter, the approved budget of the
Board shall be included in the General Appropriations Act.

Sec. 10. Effectivity. — This Executive Order shall take effect immediately.

Done in the City of Manila, this 19th day of June, in the year of Our Lord,
nineteen hundred and eighty-seven.

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