To All of To

1) This memorandum circular from the Philippines' Department of Transportation provides interim guidelines exempting leased vehicles from obtaining franchises during the country's General Community Quarantine and Modified General Community Quarantine in response to the COVID-19 pandemic. 2) Vehicles leased for at least 3 months until December 31, 2020 can transport employees without a franchise if they are used and driven exclusively by the lessee, are properly registered and insured, and are clearly marked for the company they serve. 3) Collecting individual fares from passengers is prohibited, and violating vehicles will face penalties and impoundment. The exemption expires on December 31, 2020, after which operators must apply for franchises.

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To All of To

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Edmon Malaki

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Republic of the Philippines

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

MEMORANDUM CIRCULAR
NUMBER 2O2O - 039

SUBJECT INTERIM GUIDELINES EXEMPTING LEASED YETTICLES

rROM SECURING CPC T'OR THE DURATION OF
GCQ & MGCQ (in relation to MC 2019-003)

WHEREAS' on 28 January 2A19, the Board issued Memorandum Circular No. 2019-003 which
exempted 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 used
and driver by the lessee or his duly authorized representative;

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

WHEREAS, President Rodrigo Roa Duterte signed Proclamation No. 922 entitled "Declaring a
State 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 in
community quarantine to avoid further spread of COVID-l9 and in all classifications of
Community Quarantine, movement of persons and goods have been limited to accessing
essential 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 calculated
and gradual resumption of public land transportation, the Board has received reports that
company owners have been securing transport service for their workers temporarily during the
period of General Community Quarantine;

WIIEREAS, in relation to the aforementioned and pursuant to the guidelines set forth by the
DOTI, the Board, in the exercise of its power and functions to "promulgate rules and regulations
goveming 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 certain
guidelines to be observed in the operation of Public Transportation responsive to the present
State of National Health Emergency;

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

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 be
readily available for presentation during on-road operations or as the Board deems
necsssary;
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 as
colorum operation.Appropriate penalties and impoundment of vehicle shall be implemented.
2

This Interim Guidelines setting forth the exemption from securing franchise shall
only be until 31 December 202A. No renewal or extension shall be allowed. Should the
vehicle o\rruIer intend to continue to operate beyond the foregoing period, said operator shall file
the necessary appiication with the LTFRB Central Office or Regional Franchising and
Regulatory Office (RFRO) having jurisdiction over the are#s of operation subject to existing
policies 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 least
one (1) newspaper of general circulation. Let three (3) copies hereof be filed with the IIP Law
Center - Office of National Administrative Registrar (ONAR).