WHEREAS, in the Greater Manila Area, the bigger towns and cities in the Philippines, and the main roads connecting them, there exists serious traffic congestion and disorder that have been causing accidents and delays in travel, which are highly detrimental to public safety and convenience and to the functions of commerce, industry, and the Government;

WHEREAS, in many parts of the country, due partly to inadequacy of transportation facilities, there have abounded unauthorized operators of public utility motor vehicles ("colorum" and "kabit"), who have clandestinely operated in violation of the penal provisions of existing law, rendered unregulated, unsafe or sub-standard service, put up unfair competition to legitimate operators, and deprived the Government of considerable amounts of taxes and fees;

WHEREAS, it is the policy of the State, as swiftly as possible, to improve the deplorable condition of vehicular traffic, obtain maximum utilization of existing public service motor vehicles, eradicate the harmful and unlawful trade of clandestine operators by replacing or allowing them to become legitimate and responsible operators, and update the standards that should henceforth be followed in the operation of public utility motor vehicles; and

WHEREAS, to carry out this national policy, it is imperative to provide, among other urgently needed measures, more expeditious methods in prescribing, redefining, or modifying the lines and modes of operation of public utility motor vehicles that now or hereafter may operate in this country;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution as Commander-in-Chief of the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, do hereby promulgate this Decree.

SECTION 1. Powers of the Board of Transportation. — Notwithstanding the provisions of existing law to the contrary, the Board of Transportation, in carrying out the declared national policy, shall have the power:

1. To prescribe, redefine or modify the lines, routes, or zones of service of operators that now or hereafter may operate public utility motor vehicles in the Philippines.
   
2. To grant special permits of limited term for the operation of public utility motor vehicles as may, in the judgment of the Board, be necessary to supplement and render adequate the service in any area, as a consequence of the modification of lines, routes or zones of service undertaken pursuant to this Decree.
   
3. To grant special permits of limited term for the operation of public utility motor vehicles as may, in the judgment of the Board, be necessary to replace or convert clandestine operators into legitimate and responsible operators.
   
4. To fix just and reasonable standards, classification, regulations, practices, measurements, or service to be furnished, imposed, observed, and followed by operators of public utility motor vehicles.

SEC. 2. Exercise of powers. — In the exercise of the powers granted in the preceding section, the Board shall proceed promptly along the method of legislative inquiry.

Apart from its own investigation and studies, the Board in its discretion, may require the cooperation and assistance of the Bureau of Transportation, the Philippine Constabulary, particularly the Highway Patrol Group, the support agencies within the Department of Public Works, Transportation and Communications, or any other government office or agency that may be able to furnish useful information or data in the formulation by the Board of any policy, plan, or program in the implementation of this Decree.

The Board may also call conferences; require the submission of position papers or other documents, information, or data by operators or other persons that may be affected by the implementation of this Decree; or employ any other suitable means of inquiry.

SEC. 3. Limitations. — In carrying out the purposes of this Decree, the Board shall adopt and observe a just and reasonable system of priorities in the redefinition, modification, or grant of operating rights, and reduce as much as possible any adverse effect on any person or persons affected by this Decree.

SEC. 4. Transitory provision. — Six months after the promulgation of this Decree, the Board of Transportation, the Bureau of Transportation, the Philippine Constabulary, the city and municipal police forces and the provincial and city fiscals shall wage a concerted and relentless drive towards the total elimination and punishment of all clandestine and unlawful operators of public utility motor vehicles.

SEC. 5. Repeal. — All acts, parts of acts, executive orders, and regulations inconsistent with the provisions of this Decree are hereby repealed.

SEC. 6. Effectivity. — This Decree takes effect immediately.

Done in the City of Manila, this 19th day of January, in the year of Our Lord, nineteen hundred and seventy-three.