Business Permit — DILG Region I opinion letter

Republic of the PhiliPPines DEPARTMENT OF THE INTERIOR AITD LOCAL GOVERNMEITT Regional Offrce I, City of San Fernando, La Union TelephoneNunrber(o72) 8S82108.7OO5746. 8882289, 7OO2701 .7OO3979'607 1245 www.dilgregion l.com properry or conduct of propeny rights are subiect to such power like the operation of SWs/GT and motor vehicles except tricycles. In LTO vs. City of Butuan (G.R. No. 131512, Ianuary 20, 2000), the Supreme Court held that the Department of Transportatioa and Communication (DOTC), through the LTO and the LTFRB, has since beea tasked with implementing laws pertaining to land transportation. The LTO is line agency under the DOTC whose powers and functions, pursuant to Atticle III, section 4(d)(t), 10(10) of R.A. No. 4136, orherwise known as Land Transportaion and Traffic Code as amended, deal primarily with the registration of all motor vehicles and the licensing of drivers thereof. The LTFKB, upon the other hand, is the Soverning body tasked by E.O. No. 202, dated 19 /une I98Z to regalate rhe operation of public urility or 'for hire' vehicles and to grant franchises or certificates of public convenience ("CPC"). Finely put, registration and licensing functions are vested in the LTO while fraachising and regulatory responsibilities had been vested in the LTFRB' Under the Local Government Code, certain functions of the DOTC were transfened to the LGU thuslY: ktion 458. Powers, Duties, Functions and Compensadon' (3) Subject to the prouisions of Bnk II of this code, enact ordinances granting franchises and authorizing the issuance of permits or licenses' upoa such conditions and for such purpses intendd tu Promote the general welfare of the inhabiants of the ciry and pursuant to this legisladve authority shall: Xsffi (ui)Subjecttotheguidelinespr*ribedbytheDepattmentofTranspomtion and Communications, regalate the opration of ticycla and grant franchiw for the opention thereof within the territorial iurisdiction of the city; LGUs, indubitably, now have the power to regulate the operation of uicycles-for- hire and to grant franchises for the operation thereof' However' it is only for the operation of uicycles-for-hire. The devolved power did not include other motor vehicles but only tricycles. You manifested. that in your LGU, you have old Garage Terminal SLIVs (2006 below model) whose registration as legitimate public ffansport vehicles were not renewed by LTO. These vehicles continue to transport passengers playing hide and seek with LTO personnel. AIso, private ieeps and SIJVs' owners are contracting parents to transport their children to and from school daily. And owners of these StIVs and private jeeps are asking you to issue Mayor's Permit so that they can be allowed to Eansport passengers and srudents without being questioned by the police' Taking consideration on the matter, the very Purpose of issuing Mayor's Permit is in direct violation of the powels and functions of the LTO and LTFRB because it would amount to authori"ing there vehicles from operating and [ansporting passengers and -( ffiT