The Land Transportation Franchising and Regulatory Board on Tuesday said it streamlined the process of securing franchises for transport network vehicle services.
During a dialogue with TNVS groups and stakeholders in Quezon City, LTFRB Technical Division head Joel Bolano said some changes have been made to the current process of securing franchises known as provisional authority and certificate of public convenience for TNVS drivers and operators.
Beginning the third week of July, the LTFRB will add more hearing dates to address the huge volume of TNVS applications.
“Yung isang araw, dalawang araw namin na hearing for TNVS, gagawin na po namin na three to four days. Siguraduhin lang po natin na complete requirements na po tayo (The usual one, two days hearing for TNVS will be extended to three to four days. Just make sure that the requirements are complete),” Bolano told operators during the dialogue.
The move would lessen the processing time to secure papers and at the same time allow the regulator to process more applications, he added.
It will also allot two Saturdays every month for follow-ups on applications for all types of transport services.
Upon the acceptance of a valid and complete TNVS application, the LTFRB will automatically give a PA to operate for 90 days if the applicant has a previous application and if they provide passenger insurance and proof of garage.
Bolano added that to get a PA, new applicants will also need to secure a bank certificate of conformity which is necessary for public transport as the usage of private vehicles for public service is in violation of bank rules.
The streamlining came after drivers affected by the deactivation from the system of ride-hailing app Grab for failure to secure proper permits to operate in the ride-hailing industry sought for the LTFRB to reduce the process of franchise application.
In the same dialogue, LTFRB Chairman Martin Delgra III said the agency was doing its best to address the concerns of TNVS groups.
“On behalf of the board, humihingi ako ng paumanhin (I ask for forgiveness). And that’s precisely why we are addressing it. We’re trying to find ways to address this,” Delgra said.
On Saturday, the Anti-Red Tape Authority (ARTA) stepped in and arranged dialogues between leaders of the TNVS community, the LTFRB and the Department of Transportation after complaints of red-tape were filed against the LTFRB by TNVS drivers and operators.
The LTFRB did not participate in the first two dialogues but arranged a third dialogue after a transport holiday by the TNVS community last Monday.
Lawyer Ariel Inton, president of Lawyers for Commuters Safety and Protection, expressed satisfaction with some of the changes that the regulator presented to them.
“Yung sa proseso, ito ay magiging mas madali. At yung mga requirements ay mabawasan. In fairness to the board, madami sila pinakita na pagbabago na gagawin nila sa proseso,” Inton said.
He, however, asked the LTFRB to be more lenient to colorum (unregistered) TNVS operators due to issues with the processing of TNVS provisional authorities (PAs) and CPCs.
Janina Pineda, president of the TNVS group Road Grabbers, said even though the dialogue took about six hours with no breaks, the opportunity given to members of their community to air their grievances was worth it but its results are yet to be seen.
“Lahat ng operator nagkaroon ng chance na mag-speak up regarding their concern (All operators got a chance to speak up regarding their concern). Most concerns are ongoing for a board of directors meeting so we’ll wait within this week for updates,” Pineda said.
But Jun de Leon, leader of the Metro Manila Hatchback Community and Laban TNVS, expressed his dissatisfaction after the regulator stood their ground on prohibiting hatchback operators and drivers from becoming licensed TNVS.
“Hindi naman dialogue yung nangyari dito, 'yung gusto pa rin nila ang nasunod. For review, eh hanggang kelan 'yung for review? Samantalang kabuhayan ng pamilya yung inaalala natin dito kaya gusto natin ng agarang solusyon (This was not a dialogue. What was followed was only what the LTFRB wanted. But livelihood of families are at stake and that’s why we want a quick solution),” de Leon said.
Also present during the meeting were DOTr Undersecretary for Road Transport and Infrastructure Mark De Leon, ARTA Deputy Director
General Ernesto Perez, and other officials from the LTFRB.
In the same dialogue, Perez asked the LTFRB to relax its rule on requiring bank conformity for securing a Certificate of Public Convenience (CPC) for transport network vehicle services (TNVS) operators.
Perez, who is ARTA officer-in-charge, director general, said the issue of "red-tape" in securing CPCs would not be solved until the question on bank conformity is resolved.
“But we all know that the LTFRB has no regulatory power over the bank. And we all know, as a practicing lawyer for many years, we all know that (a bank’s) main concern is to protect its investment, protect its interest,” Perez said.
Perez said banks impose requirements that are hard to comply with for small TNVS operators.
“Maybe for the big operators, P10,000 or P50,000 maybe peanuts. But for the ordinary driver, this really matters much,” Perez said.
He said TNVS franchising is a “regulatory innovation” and the LTFRB should be more understanding to TNVS operators since there is no clear governing legal framework.
“Naiintindihan ko po 'yung sitwasyon (I understand the situation), if we cannot appeal and we do not expect the bank to grant our request, then we turn our appeal to the LTFRB to relax its rule on bank conformity,” Perez said.
LTFRB chairman Martin Delgra III noted that Perez raised a good point, adding it is fundamental to set certain standards, “and part of that standard are the requirements”.
He said bank conformity is a requirement between three parties, the LTFRB, the Land Transportation Office (LTO) and the banks and so it must be discussed with other parties before a decision can be made.
“The issue that was raised is valid, and that is precisely why kailangan pag-usapan (it needs to discussed). Rest assured that we will address this, we will have to take it up with the bank and with LTO as well,” Delgra said.
The LTFRB chief said the discussion and a decision on requiring bank conformity would happen within the week.
Perez reiterated Delgra’s point that giving an exception to colorum TNVS operators may force the board to apply the rule to all transport services for the sake of fairness. However, he said that since TNVS franchising is a regulatory innovation, TNVS drivers and operators should be distinguished from an ordinary colorum operator.
Delgra said the matter would also be discussed with the board along with other concerns of the TNVS community during the dialogue.
