Tips - Page 146

How to Apply Provisional Authority LTFRB

Applying for a Provisional Authority (PA) requires passing a thorough assessment by the Land Transportation Franchising and Regulatory Board (LTFRB). It is a mandatory requirement for operators or car owners who wish to have their vehicles operating publicly as a transport service provider while waiting for their franchise applications and Certificate of Public Convenience (CPCs) to be issued.

The Provisional Authority is a temporary measure granted after a thorough inspection of numerous factors, including the capacity of the transport vehicles, compliance with safety standards, and the operator’s commitment to fulfilling the requirements for a regular franchise. This ensures that despite being a temporary measure, the granted provisional authority aligns with the LTFRB’s commitment to public safety and service reliability.

Table of Contents

What is a Provisional Authority (PA) from LTFRB?

A Provisional Authority (PA) is a temporary provisional remedy issued to any person who intends to operate their unit/s while their franchise applications are pending with the agency. This permit lets the individual operate in certain public activities, much like a Certificate of Public Convenience (CPC) would. For example, if you want to operate as a truck-for-hire but have yet to receive your CPC, you can use the provisional authority as a temporary trucking requirement permit. Likewise, in cases when you want to convert your car as a public utility vehicle (PUV) or a car-for-hire or if you want to offer ride-sharing services under a Transport Network Vehicle Service (TNVS) platform like Grab, then you’d need a provisional authority.

While the Provisional Authority may seem like a practical solution, note that it cannot be used as a long-term substitute for an LTFRB franchise. In fact, before a provisional authority can be issued, one must have processed an application for a CPC first. Also, the PA comes with limited validity of only three months to one year, depending on certain conditions. A provisional authority can only be renewed once (though some special cases may overrule this) for another three months of usage upon request.

Using Provisional Authority under the Public Utility Vehicle Modernization Program (PUVMP)

Under the Public Utility Vehicle Modernization Program (PUVMP), the following guidelines on the validity of Provisional Authority is outlined under MC 2023-051 which was signed and issued on December 14, 2023.

Consolidation Guidelines

Consolidated Transport Service Entities (TSEs) and individual operators with a filed application for consolidation before December 31, 2023, are allowed to continue operations under their existing motu propio Provisional Authority (PA). This authorization is valid until December 31, 2024, or until the issuance of the Certificate of Public Convenience (CPC), whichever comes first.
The 6-9-12 month substitution scheme for old/existing units is no longer in effect. The compliance period for such schemes will be subject to subsequent Department of Transportation (DOTr) or LTFRB issuances.
The previous requirement of 15 OFG-compliant units for the issuance of a CPC has been set aside. Consolidated TSEs can now obtain a new CPC by submitting their Formal Offer of Evidence (FOE) with complete documentary requirements.

Routes Without Consolidated TSEs

For routes without Consolidated TSEs, all Provisional Authorities (PA) issued to individual operators are considered revoked from January 1, 2024. The authorized units will not be confirmed for registration as public utility vehicles. A Show Cause Order will be issued in compliance with the provisions of the Public Service Act.
To address the need for adequate public transport on these routes, the LTFRB will issue separate guidelines.

Individual Applicants under TNCs

For individual applicants who wish to process a Provisional Authority application in order to join a TNC, they will need to submit the documentary requirements for CPC application to their preferred TNC and they will be issued a provisional authority upon submission of CPC Application.

How to Apply for Provisional Authority (PA) for Individual/TNC Applicant at LTFRB

There are certain steps in securing a provisional authority from the LTFRB. If you are an individual applicant and you are interested in joining a TNVS, you may refer to the procedures for PA application listed below, as described by Board Resolution No. 185:

Requirements

Four (4) original copies of the Verified Application (the template is downloadable at www.ltfrb.gov.ph)
Photocopy of Official Receipt and Certificate of Registration (OR/CR).
If the unit is encumbered, an Affidavit of Undertaking that the CoC shall be submitted during the hearing.
Proof of Filipino Citizenship, such as
- Birth Certificate,
- Passport,
- Voter’s ID, or
- any valid Government-issued Identification Card showing Citizenship, and
Certificate of TNVS Enrolment/Registration issued by the Transport Network Companies (TNC).
TNC’s Notarized Certification to ascertain the genuineness and authenticity of the documents submitted.

Additional Requirements

The following requirements are necessary for the application for CPC and must be submitted at least five (5) working days prior to the CPC hearing date:

LTO-issued OR/CR or COC from the bank or financial institution if the unit is under financing
Proof of Existence and Sufficiency of Garage. If the applicant is the owner of the garage, the Transfer Certificate of Title (TCT)/Tax Declaration in the name of the applicant is required; if not, provide a copy of TCT/Tax Declaration with Notarized Lease Contract or Notarized Authority to Use Garage with an ID of the Lessor.
Proof of Financial Capability in the form of Proof of Bank Deposit in the amount of ₱20,000 per unit
5R photograph of units subject to the application (front, back, and sides of the vehicle), including the front page of a newspaper to show the date when the pictures were taken.
DTI Certificate of Business Name Registration
BIR Certificate of Registration to engage in Transport Service or Proof of Filing
Certificate of Enrollment/Registration issued by the TNC
Police and NBI Clearance of the authorized driver/s
Proof of Publication
- Affidavit of Publication by the publisher
- Copies of Publication
- Affidavit of Attestation as to the authenticity of the documents submitted

Procedures for Individual Provisional Authority Application for TNC Applicants

The Land Transportation Franchising and Regulatory Board (LTFRB) has issued a series of Memorandum Circulars (MC) outlining guidelines for issuance and validity of provisional authority.

For actual procedures for application for provisional authority, here are the steps to follow:

Step 1: Set an appointment date for application of provisional authority.

Step 2: Show up on the appointed date and submit the required documents.

Step 3: Upon filing the Application, the applicant shall be required to submit an Affidavit of Undertaking that the CoC shall be submitted during the hearing, non-compliance of which shall be ground for dismissal of the Application.

Step 4: After acceptance of the Application, the Board will issue a Provisional Authority (PA), valid for ninety (90) days. No Extension of Provisional Authority shall be issued unless the Application is submitted for resolution upon submission of all the documentary requirements.

Step 5: Once you have the PA and the Passenger Insurance Policy, then you may attend your TNC’s onboarding.

Step 6: Attend the CPC hearing with an authorized representative from your TNC.

Fees

When applying for a new CPC and the provisional authority from the LTFRB, you may want to be ready to pay the following fees:

LTFRB Processing Fees for one unit
- Filing fee (first 2 units) – ₱ 510.00
- ₱ 70.00 per unit in excess of two (2) units
- Legal Research Fee – ₱ 10.00
- Provisional Authority Fee – ₱ 250.00
- Passenger Insuran wece Fee (from SCCI): – Depending upon the cost per unit

Video: How to Renew Provisional Authority

Like other permits, the LTFRB Provisional Authority is also renewable. To apply for a renewal of the provisional authority from LTFRB, you may watch this video from Kuys TV:

Important Reminders

For your reference, here are a few things worth taking note of when it comes to individual application for provisional authority via a TNC:

The slots shall be open to the public face-to-face on a first-come, first-served basis at the LTFRB Technical Division.
Each TNC shall be allowed to register 100 slots per day.
All registered slots must be paid and filed within two (2) days from the issuance of the assessment.
Interested applicants must enroll and register with an accredited TNC of their choice.
The Transport Network Company (TNC) of choice shall be responsible for the registration and filing of the Application for Issuance of New Certificate of Public Convenience.
Each applicant shall be limited to applying for only three (3) units.
The TNC of choice shall assist the applicants in preparing the documentary requirements and shall exercise due diligence in reviewing the documents submitted to it by the applicants in connection with their Application for a CPC to operate TNVS under Memorandum Circular No. 2015-017-A
The TNC shall submit to the Board a Notarized Certification that it has exerted due diligence to ascertain the genuineness and authenticity of the documents and the application prior to submitting them to the LTFRB.
Only the accredited TNC’s authorized counsel on record shall be the authorized representative of the applicants.

Summary

The Provisional Authority issued by the LTFRB stands as a critical tool in addressing immediate transportation needs. However, it is essential to recognize its temporary nature and the need for operators to undergo the regular franchise application process for sustained and regulated service delivery. Depending upon the circumstances that prompted your need for a provisional authority, then you can prepare according to the guidelines listed above.

LTO Penalty for Late Registration / Delinquent Registration

The late or delinquent registration penalty is usually imposed by the Land Transportation Office (LTO) upon the renewal of a motorcycle or a motor vehicle’s registration beyond the designated deadline. It could set you back by more than a few thousand pesos, on top of the other violations and penalties you will have to settle when you get caught driving or operating vehicles with expired registrations, which is quite terrifying.

Despite the terrifying prospect of having to face hefty LTO fees and associated violations, however, many people still end up with expired vehicle registrations. It could be due to lack of proper knowledge or maybe willful disobedience, but this article will ensure that you understand what it means to have to pay late and delinquent registration penalties.

Table of Contents

Late vs. Delinquent Registration in LTO

Late and delinquent registration may seem like the same to you but there actually is a difference. When you fail to renew your vehicle registration on time before the deadline, then it is considered late registration and you will be penalized with a late registration fee.

Delinquency, on the other hand, refers to the late payments that are made past the payment deadline. It generally refers to being 30 days late in cases of credit payments. In cases of LTO registrations, however, this translates to registration delays beyond the registration month, based on the last digit of your plate number. In such cases, the penalty fees will be different from your regular late registration penalty.

Registration Schedule

All vehicles need to be registered on their assigned week (based on your plate number’s last two digits), and if you miss this crucial period, prepare yourself for more LTO late registration expenses.

From your plate number, you can get the month and the week that you need to proceed to LTO and have your motor vehicle renewed. First, look at the last digit of your plate number, and this will correspond to the month. Next, look at the second to the last digit of your plate number, and this will correspond to the week. It’s pretty simple.

If your plate number ends in 12, your registration deadline would be as follows:

The month of February (based on the last digit, 2)

Week 1 or the first to the seventh working day (based on the second to the last digit

Penalties for Late and Delinquent Registrations

Now that your registration schedule has been cleared up, it’s in your best interest to settle your vehicle registrations accordingly. However, if, for whatever reason, you fail to do so, then you’d better consider doing so as soon as possible. After all, failure to do so is shameful and illegal. Plus, the LTO will only be too happy to carry out well-deserved punishments for willfully disobedient drivers and car owners.

These punishments also entail fines and penalties listed as follows:

Getting caught driving an unregistered motor vehicle carries with it a fine of P10,000.

Worse still, if the non-registration exceeds one month, the unregistered vehicle being driven will be impounded and released only once the registration procedures have been completed and the corresponding fines and penalties have been paid.

If you haven’t registered your car in three years or so and you’re caught on the road, you will lose your car, have to pay the P10,000 fine, and the additional penalties to register your vehicle.

For the actual late registration fees that you will need to pay upon registration renewal, here’s more information:

If you go beyond the seven-working-day period for registration, then you will need to pay a penalty of P100 for motorcycles or P200 for all other vehicles.

If, however, you go beyond the registration month, but not more than 12 months beyond (based on the last digit), you will be charged an additional penalty equivalent to 50% of the Motor Vehicle User’s Charge (MVUC) for your vehicle class.

If you fail to register your vehicle for a period beyond 12 months, then the answer is a bit more complicated.
- The government will check to see if you have had any apprehensions for violations of any land transportation laws during the period of non-registration.
- If you were lucky enough not to have incurred any sort of violation or you simply never got caught violating any laws, then you will be charged 50% of the MVUC plus the cost of renewing your registration (once).
- If, however, you were apprehended for a violation while your vehicle was not registered, you will be charged 50% of the MVUC plus the cost of renewing your registration for every year that you did not register your vehicle, along with the fees to settle the violation you were initially caught for.

So, there you have it. It may seem complicated since it really is. So, if you own a car or a motorcycle, you need to make sure that you follow the rules and register your vehicle every year. After all, it only takes about half a day and you can already save on a ton of money and headaches. So just do it when you need to and get it over with.

Video: Guide on Why You Should Renew Your Car Registration on Time

Please check out this video guide outlining the details on why you need to renew your car registration before the registration expires.

Frequently Asked Questions

For more information on the late registration penalty fees and the process for renewal of registration for your car or motorcycle, then here are some information that might help:

1. Can I transfer my next registration to another LTO branch?

Yes. You can completely transfer your next registration to another LTO branch. However, note that while it is allowed, it doesn’t come for free. To transfer your registration, you will need to pay P100.00 for Change of Venue (COV) of your motor vehicle registration. It’s not much, but it’s good to know so you can prepare accordingly and won’t get short on cash when you get there.

2. How much is the fine for LTO penalty for expired motorcycle registration in the Philippines?

As of writing, the LTO still charges a weekly fine of P100 for every week of late registration. If the delay lasts for months, but not longer than a year, then the fine will be equal to 50% of the MVUC.

3. When should I renew my motorcycle registration?

Most people forget the date when they registered their vehicles, and that’s why so many fail to get their registration on time. You can actually use your plate number to figure out when you need to have your vehicle re-registered. To do so, simply take a look at your plate number. From your plate number, you can get the month and the week that you need to proceed to LTO and have your motorcycle renewed. First, look at the last digit of your plate number, and this will correspond to the month. Next, look at the second to the last digit of your plate number, and this will correspond to the week.

4. What if I don’t have a plate number yet?

Because of the backlog in LTO, some motorcycle riders are still waiting for their plate numbers even after a year of registering. If you don’t have a plate number yet, then you may refer to your temporary plate number or the date of release from the dealership and use it as a reference for the renewal date.

If referring to your temporary plate number, ypu may follow the same procedure for a permanent plate number as mentioned above.

5. Can I renew my vehicle registration in advance?

Yes. Do note that you can opt to renew your motorcycle registration at LTO in advance or at least one month before your prescribed date. But if you go beyond the prescribed deadline based on your plate number information, then and only then will you incur the corresponding penalty for late registration. If it takes many months, you will have to face delinquent registration penalties which are a lot higher.

Summary

Late and delinquent registration penalty is usually imposed by the LTO upon the renewal of a motorcycle or a motor vehicle’s registration beyond the designated deadline. What makes it scary, however, is not the late or delinquent fees, but the associated violations you might be caught with if you drive this unregistered vehicle. After all, getting caught driving an unregistered vehicle can set you back by at least P10,000.00 in penalties, that is, if you’re lucky enough and they did not impound your vehicle. Otherwise, you’ll have to settle the registration procedures first, then you will need to pay all the penalties before you can get your car or motorcycle back. Quite a hassle, isn’t it? Worse yet, if you incurred other violations, that would mean other extra charges against your wallet. So, if I were you, I’ll just go the usual way, spend half a day at the LTO office and renew my vehicle registration on time. It seems less troublesome that way.

PUVMP: Public Utility Vehicle Modernization Program Philippines

The PUVMP, otherwise known as the Public Utility Vehicle Modernization Program, refers to the jeepney modernization program that started out as a debate topic during the Marcos regime (1965–1986). It is a bid to revolutionize and transform traditional jeepneys and other public utility vehicles (PUVs) which resurfaced as a comprehensive reform program under the Duterte administration in 2017. The program was launched as an ambitious initiative to transform the traditional jeepneys and other public utility vehicles, and effectively address existing issues on safety, efficiency, and environmental impact.

The PUVMP is a comprehensive reform in the public land transportation industry. It was launched as a response to the growing challenges faced by the country’s public transportation system. Outdated vehicles, safety concerns, and worsening environmental issues prompted the need for a comprehensive and modernized program concerning the public utility vehicles (PUVs), and with the PUVMP, the Philippine government hopes that drivers and operators will continue to have stable and dignified livelihoods while the commuters enjoy quick, safe, and comfortable journeys.

Table of Contents

PUVMP Public Utility Vehicle Modernization Program

What is PUVMP?

PUVMP stands for the Public Utility Vehicle Modernization Program. It is a comprehensive reform program headed by the Department of Transportation (DOTr) who later invited the Office of Transportation Cooperatives (OTC)—one of the attached agencies of DOTr—as one of its implementing partners. As it concerns PUVs, the program also involves the Land Transportation Franchising and Regulatory Board (LTFRB) as one of its collaborators for the reform initiative.

The program itself mainly aims to improve the most used road-based public utility vehicle, the jeepney, as it has now evolved into a “problem,” thanks to the aggressive driving behavior of its drivers as they compete for passengers. The PUVMP was designed to ‘overhaul’ the transport system and not phase out the iconic jeepney. It proposes fleet modernization, requiring the replacement of jeepney units aged 15 years or older with those featuring Euro 4 or electric engines, equipped with modern amenities like GPS, automated fare collection systems, and closed-circuit television cameras to make the public commute more efficient and safer. With the PUVMP, the DOTr hopes to improve and consolidate the local public land transport service geared towards a restructured, modern, well-managed, and environmentally sustainable transport sector.

Components of the PUVMP

To carry out such a significant transformation of the public transport sector, the PUVMP takes into consideration ten (10) different components.

These are:

Regulatory reform

Local public transport route planning by the local government

Route rationalization study

Fleet modernisation

Industry consolidation

Financing PUV modernisation

Vehicle useful life program

Pilot implementation

Stakeholder support mechanism

Communication

With these components, the DOTr introduced the PUVMP—a new regulatory policy where modern public utility vehicles have definite transport routes based on passenger demand and road hierarchy. Vehicles are also consolidated from the current dominance of single ownership towards having a ‘common revenue sharing and fleet management’ through a ‘one-route-one-franchise’ system.

Key Objectives

1. Enhanced Safety

The program prioritizes passenger safety by enforcing rigorous safety standards, including the incorporation of features like anti-lock braking systems (ABS) and air-conditioning.

2. Environmental Sustainability

Citing concerns about the climate impact of diesel-run jeepneys on air quality and the increased environmental footprint of the increased demand for mass transit, the PUVMP promotes the use of Euro 4-compliant engines, which contribute to lower emissions and improved air quality. Plus, it will also encourage less use of private vehicles and more reliance on public transport, effectively reducing fuel use and vehicle emissions.

3. Efficiency and Technology Integration

Modernized vehicles are equipped with GPS tracking systems for efficient route management and automated fare collection systems, streamlining the overall transportation experience.

4. Vehicle Upgrades

Under the PUVMP, the traditional jeepneys are converted from ‘traditional’ jeepneys into ‘modern’ ones. The modernized versions feature not only improved safety and technological advancements that are not kakarag-karag (cranky), bulok (rotten), mausok (smoky), maingay (noisy), and delikado (unsafe) mass transport system, but also a more standardized and regulated design.

5. Economic Impact

The program is anticipated to have a positive impact on the economy. By improving public transportation services, the PUVMP aims to attract more passengers, enhance tourism, and contribute to the overall economic development of local communities.

6. Consolidated Transport Service

Under the PUVMP, public land transport service will be consolidated into a bigger, more coordinated fleet with a ‘common revenue sharing and fleet management’ system from the current dominance of single ownership in order to facilitate PUV operators in securing loans for new units, streamline route planning based on passenger demand, implement a fixed salary scheme for drivers, and operate their units in a systematic and predictable manner, according to Memorandum Circular 2023-017 issued by the LTFRB.

PUVMP Funding

This reform, outlined in the Department of Transportation (DOTr) Department Order No. 2017-011, aims to reshape the sector into a modern, well-managed, and environmentally sustainable mode of transportation. It also includes provision for funding, with plans to provide loan programs through the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP). Under the program, both the LBP and the DBP will offer a Php 160,000 (USD 3200) subsidy per modern vehicle, an increase from the initial Php 80,000 (USD 1575) subsidy. Transport cooperatives, however, must opt for loans with a seven-year repayment period at a 6% interest rate per annum.

Challenges and Controversies

While the PUVMP holds the promise of a more efficient and sustainable transportation system, it has not been without challenges. Some operators and drivers of traditional jeepneys have expressed concerns about the financial burden of upgrading, and debates over cultural preservation have surfaced as the iconic appearance of jeepneys undergoes changes.

Just recently, some transport and commuter rights groups, led by Piston president Mody Floranda, filed a 56-page petition urging the Supreme Court to halt and nullify government orders mandating franchise consolidation by December 31, 2023. This consolidation is part of the Public Utility Vehicle Modernization Program (PUVMP), specifically targeting the phaseout of traditional jeepneys. The petition aims to prevent the Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB) from enforcing this contentious program which they believe to have overly broad provisions that abuse the discretion and violate their constitutional right to freedom of association as well as the voluntary nature of a cooperative under Republic Act (RA) No. 9520 or the Cooperative Code. They also tagged the PUVMP as oppressive, overreaching, and confiscatory.

Video: PUVMP Challenges, Issues, and Updates Webinar

Learn more about PUVMP, particularly the challenges, issues, and updates on this controversial public land transport reform program by watching this recorded video from UP National Center for Transportation Studies.

Summary

As the Philippines continues to roll out the PUVMP, the nation stands at the threshold of a modernized and efficient public transportation system. Balancing the need for progress with the preservation of cultural identity remains a crucial aspect of this transformative initiative. However, the challenges remain. While the government sees PUVMP as a step towards a safer and more sustainable future that also reflects the resilience and adaptability of the Filipino transportation landscape, the affected transport and commuter groups are adamant about putting a halt to its implementation, citing aggressive, abusive, and unconstitutional provisions that violate their constitutional rights.

To date, the argument remains, though the other provisions except for the consolidation of franchise mandated under the PUVMP continues to be implemented nationwide.