Republic of the PhilippinesDepartment of Transportation

LA}[D TRANSPORTATION FRANCHISING & REGULATORY BOARI}East Avenue, Quezon City

MEMORANDUM CIRCULARNUMBER 2O2O - 039

SUBJECT INTERIM GUIDELINES EXEMPTING LEASED YETTICLESrROM SECURING CPC T'OR THE DURATION OFGCQ & MGCQ (in relation to MC 2019-003)

WHEREAS' on 28 January 2A19, the Board issued Memorandum Circular No. 2019-003 whichexempted certain vehicles from securing franchises, i.e., the vehicle must be covered by a long-term lease contract of not less than three (3) years, and that the vehicle must be exclusively usedand driver by the lessee or his duly authorized representative;

WHEREAS, h December 2A19, the World Health Organization was alerted of severalrespiratory cases whioh wore later on attributed to what is now known as the "Corofla VirusDisease (Covid-l9)";

WHEREAS, President Rodrigo Roa Duterte signed Proclamation No. 922 entitled "Declaring aState of Public Heahh Emergency Throughout the Philipptnes" on 08 March 2a20;

WHEREASTin view of the national health emergency, ar$as in the cowrffy were placsd incommunity quarantine to avoid further spread of COVID-l9 and in all classifications ofCommunity Quarantine, movement of persons and goods have been limited to accessingessential goods and service, for work in the offices or industries permitted to operate;

WHEREAS, in view of the policy of the Department of Transportation (DOTr) for a calculatedand gradual resumption of public land transportation, the Board has received reports thatcompany owners have been securing transport service for their workers temporarily during theperiod of General Community Quarantine;

WIIEREAS, in relation to the aforementioned and pursuant to the guidelines set forth by theDOTI, the Board, in the exercise of its power and functions to "promulgate rules and regulationsgoveming proceedings before the Board and the Regional Franchising and Regulatorybffices',as provided under Section 5(i) of Executive Order No. 202, deems it appropriate to set certainguidelines to be observed in the operation of Public Transportation responsive to the presentState of National Health Emergency;

NOW TIIEREFORE, for and in consideration of the foregoing, the Board hereby EXEMPTSvehicles used to transport employees/workers from securing franchise, under ih* Ailo*iogconditioas:

l- Vehicles must be secured by a Contract of Lease for a period of at leastthree (3)months but not exceeding December 31,202A, and said contract must at all times bereadily available for presentation during on-road operations or as the Board deemsnecsssary;

2. Vehicles must be used and driven by the lessee or his/trer authorized representatives;3. Vehicles musl be currently registered and covered by a comprehensive passenger

insurance policy;4. Yehicles subject of the lease contract shall bear the proper marking of, the company

that it is servicing for identification.

In case the vehicle or,vner/driver shall collect individual fare from the passengers ('ulo-r.r/o" system), the act shall be construed as a violation of this Circular and shall be considered ascolorum operation.Appropriate penalties and impoundment of vehicle shall be implemented.

2

This Interim Guidelines setting forth the exemption from securing franchise shallonly be until 31 December 202A. No renewal or extension shall be allowed. Should thevehicle o\rruIer intend to continue to operate beyond the foregoing period, said operator shall filethe necessary appiication with the LTFRB Central Office or Regional Franchising andRegulatory Office (RFRO) having jurisdiction over the are#s of operation subject to existingpolicies of the Departrnent of Transportation (DOTr) and Board for shuttle service operations(such as vehicle specification, valid contract with a company, and the like).

All issuances inconsistent herewith are hereby superseded and amended accordingly.

This Memorandum Circular shall take effect immediately following its publication in at leastone (1) newspaper of general circulation. Let three (3) copies hereof be filed with the IIP LawCenter - Office of National Administrative Registrar (ONAR).

So 0RDERTD. Aij6 1? ?CI?flADOPTED AFID APPRO\TED THROUGH A TELECONFERENCE ON 14 AUGUST

282A, Quezon City, Philippines.

-{: -ATTY.TffiIMT

?lIII

ENGR. P/COL. C. PERNITO (Ret.)Board Member

K. AQUI0 (Ret.)OIC -Executive Director

Member

Col.