Case Digest: LTO vs. City of Butuan, 322 SCRA 805, G.R. No. 131512

 

LTO vs. City of Butuan, 322 SCRA 805, G.R. No. 131512, January 20, 2000

Subject: Transportation Law

FACTS

The Sangguniang Panglungsod (SP) of Butuan on August 16, 1992 passed an ordinance entitled “An Ordinance Regulating the Operation of Tricycles for hire, providing mechanism for the issuance of Franchise, Registration and Permit, and imposing Penalties for Violations thereof and for other purposes.”

The ordinance provided for, among other things, the payment of franchise fees, fees for registration of the vehicle, and fees for the issuance of a permit for the driving thereof. The City of Butuan asserts that Sec. 129 and Sec.133 of the Local Government Code is their basis for said ordinance and that, said provisions authorize LGUs to collect registration fees or charges along with, in its view, the corresponding issuance of all kinds of licenses or permits for the driving of tricycles.

LTO explains that one of the functions of the National Government, that, indeed has been transferred to LGUs is the franchising authority over tricycles-for-hire of the LTFRB but NOT the authority of the LTO to register all motor vehicles and to issue to qualified persons of licenses to drive such vehicles.

The RTC of Butuan decreed an issuance of a PERMANENT WRIT OF INJUCTION against LTO prohibiting and enjoining LTO, as well as its employees and other persons acting in its behalf, from (a) registering tricycles and (b) issuing licenses to tricycle drivers. The CA sustained the trial court’s decision. The adverse rulings of both Courts prompted the LTO to file an instant petition for review on certiorari to annul and set aside the earlier Court decisions.

ISSUE

Whether or not under the present set-up the power of the LTO to register, tricycles in particular, as well as to issue licenses for the driving thereof has likewise devolved to Local Government Units.

RULING

No, under the present set-up the power of the LTO to register, tricycles in particular, as well as to issue licenses for the driving thereof has not likewise devolved to Local Government Units.

Under the Local Government Code (specifically Sec. 458 (8)(3)(VI)), the Local Government Units now have the power to REGULATE (to fix, establish or control, to adjust by rule, method or establish mode to direct by rule or restriction; or to subject to governing principles or laws) the operation of tricycles for hire and grant franchises thereof but they are still subject to the guidelines prescribed by the DOTC (Department of Transportation and Communications; under Article 458(a) [3-VI] of the RA 7160).

In this case, said powers [to register and issue licenses] remain under LTO’s exclusive jurisdiction. The registration and licensing functions are vested in the LTO (pursuant to Art. 3 Sec. 4(d) [1], 10 of RA 4136-Land Transportation and Traffic Code) while franchising and regulatory responsibilities are vested in the LTFRB (Land Transportation Franchising and Regulatory Board; pursuant to EO # 202).