Law on Land Transportation of Honduras

This Law is of public order and has the purpose of establishing the administrative and functional structure of the competent bodies for its application, and likewise to regulate the form, conditions and requirements to which the provision of public and special service of land transportation of persons, cargo or merchandise must be subject.

The primary purpose of this Law is to obtain for the Users of the public and special transportation service, the greatest and best conditions of quality, safety, comfort, efficiency, economy and representativity established under the principle of equity as regards the investment made by the service providers in accordance with international treaties on the matter ratified by the State of Honduras, of which it is a signatory. Users must be guaranteed representativity in decision-making.

For the purposes of application and interpretation of this Law and its regulations, the following is understood as:

• 1)

  UNIT ANTIQUITY: Maximum period allowed for a transportation Unit to be used in the provision of service.

• 2)

  CARGO: Merchandise, livestock, things or species and all types of goods or commodities that are moved from one place to another by motor vehicles or other means of land transportation.

• 3)

  OVERSIZED CARGO: That which exceeds the measures of authorized legal technical specifications.

• 4)

  SPECIALIZED CARGO: Products that require differentiated, specific and special handling because they constitute a risk to the health of the population and the environment or that require specialized equipment for their transportation.

• 5)

  SERVICE CATEGORY: The quality of public transportation service in consideration of its speed, price and other conditions that may be established.

• 6)

  OPERATION CERTIFICATE: The document necessary to legally operate a motor vehicle or one without its own traction, intended for public or special transportation service.

• 7)

  VEHICLE CERTIFICATE: Proof that a vehicle intended for the provision of service has successfully approved, by a qualified body, the verification process regarding the state of operation, safety mechanisms, comfort and other necessary items that in the judgment of the Institute should be provided.

• 8)

  PILOT CERTIFICATE: Proof that a natural person who works or intends to work in a vehicle intended for the provision of service has successfully approved by a qualified body the verification process regarding their capacity, aptitude and other necessary qualities that in the judgment of the Institute they should possess.

• 9)

  CONCESSION: Authorization that the State grants, through the Institute, to natural or legal persons so that they may enjoy the right to commercially exploit the provision of transportation service.

• 10)

  CONCESSIONAIRE: The natural or legal person who enjoys an Operation Permit and Operation Certificate to commercially exploit the transportation service under the conditions and requirements fixed in this Law.

• 11)

  OPERATING CONSORTIUM: The group of companies individually or collectively considered that meet to operate jointly, maintaining their financial and legal independence, establishing a second-level structure to achieve unique planning of services that converge in a common road corridor, planning of services, their control, their operation statistics, communication systems, route design, investment schemes, technology implementation and fleet topology; determined through technical levels established by the Institute.

• 12)

  COMMON CORRIDOR: The route shared by two (2) or more regular routes, which is why it is not exclusive to any operator.

• 13)

  EXTRAORDINARY DEMAND: The requirement for collective transportation service that temporarily exceeds the original provisions of service operation and originates from occasional activities of short duration, such as Holy Week, mid-year vacations and end-of-year and beginning-of-year activities.

• 14)

  DECREASE IN DEMAND: The requirement for collective transportation service that decreases the original provisions that served as the basis for granting the concession, due to population decrease or variation of operating conditions.

• 15)

  THE INSTITUTE: Honduran Institute for Land Transportation, which can be identified with its initials (IHTT), is the body responsible for the execution of this Law.

• 16)

  STATION OR STOP: The place designated, within a route, for the momentary detention of a vehicle to board or disembark persons or cargo.

• 17)

  TERMINAL STATIONS FOR TRANSPORTATION SERVICE: Facilities where vehicles intended for land transportation are received and dispatched.

• 18)

  ROUTE EXTENSION: The extension of an already granted concession, which does not exceed twenty (20) additional kilometers.

• 19)

  EXCESS PASSENGERS: The number of passengers that exceeds what is established in the operation permit of the corresponding Unit.

• 20)

  SCHEDULE: The chronological frequency in which transportation vehicles that enjoy a concession granted by the State provide their service.

• 21)

  ITINERARY: The places and stops between which public transportation service is provided.

• 22)

  THE LAW: This Land Transportation Law of Honduras.

• 23)

  LAND TRANSPORTATION LICENSE: The document that contains the authorization for a determined person to be a Pilot of a land transportation Unit.

• 24)

  OPERATOR: The assistant person or persons and other operators related to Pilots.

• 25)

  PILOT: The person who drives a motor vehicle under their immediate responsibility and with the License granted by the competent Authority.

• 26)

  OPERATION PERMIT: The administrative act of the Institute by which the provision of land transportation service is authorized in accordance with this Law and its Regulations.

• 27)

  ROUTE: The route traveled between two (2) points authorized by the Institute, whether these are highways, roads, streets and avenues of the Country's road network, by paid remunerative transportation vehicles for persons.

• 28)

  INTERNATIONAL SERVICE FOR PERSONS AND CARGO: The transportation service that Concessionaires conduct from one country to another; which is provided with a vehicle within national territory.

• 29)

  INTERNATIONAL SERVICE FOR PERSONS AND CARGO IN TRANSIT: That service which only passes in transit through Honduran territory.

• 30)

  PUBLIC TRANSPORTATION SERVICE (STP): The service provided to satisfy the demand for transportation of persons and cargo, in motor vehicles with rental plates through payment of a determined tariff or price.

• 31)

  SPECIAL TRANSPORTATION SERVICE (STE): The service provided for students, workers, social and religious groups, private cargo transportation and similar, through payment of a determined price.

• 32)

  AUTOMATIC SYSTEM: Special procedure regulated by the Institute for the renewal of concessions.

• 33)

  TARIFF: The price to be paid by the User to the Concessionaire of remunerative transportation of persons and cargo, authorized by the Institute.

• 34)

  COLLECTIVE TRANSPORTATION: The public service of remunerative transportation of persons in vehicles such as buses, minibuses and other forms of mass transportation.

• 35)

  STUDENT TRANSPORTATION SERVICE: The service provided exclusively to students of preschool, primary, secondary, technical education and university toward and from public or private educational centers or other students who require transportation service.

• 36)

  TOURISM TRANSPORTATION: That service which is contracted to generally satisfy the needs of persons who undertake displacements related to recreational, sports, cultural or leisure activities.

• 37)

  USER: That natural or legal person who contracts or habitually uses the public transportation service through payment of a determined tariff or price, as the case may be.

• 38)

  UNIT: The vehicle intended for the provision of public or special transportation service. TITLE II AUTHORITY IN TRANSPORTATION MATTERS CHAPTER I HONDURAN INSTITUTE FOR LAND TRANSPORTATION (IHTT)

The HONDURAN INSTITUTE FOR LAND TRANSPORTATION (IHTT) is created as a deconcentrated entity of the State Secretariat of Infrastructure and Public Services (INSEP), with its own budget, whose jurisdiction extends throughout the territory of the State. It is the exclusive attribution of the Institute to apply this Law and its regulations. For the performance of its functions it has an operational structure comprised of regional, departmental and local delegates, as the case may be; who have the attributions expressly stipulated for them by the Regulation of the Law or of the Institute.

To guarantee the efficacy and efficiency of the Land Transportation System, the Institute is obligated to:

• 1)

  Ensure compliance with this Law and its Regulations;

• 2)

  Ensure the adequate utilization of available resources and their maximum performance;

• 3)

  Coordinate its actions under the principles of unity of criteria, celerity and simplification of its procedures, in observance of the Administrative Procedure Law;

• 4)

  Ensure that the principles of public and special service are respected, as well as environmental protection;

• 5)

  Comply with the Administrative Procedure Law, respecting due process;

• 6)

  Supervise and oversee the quality of service provided by transportation concessionaires, for which it may issue the necessary precautionary measures to guarantee the continuity and efficiency of the public service, including the temporary or permanent replacement of the service concessionaire, especially when the life and safety of Users is placed at risk; and,

• 7)

  Address the demands of Users in the policies for improving the quality of regulated service.

The Institute is comprised in its general structure by the following bodies:

• 1)

  The Directive Commission of Land Transportation (CDTT);

• 2)

  The Advisory Council of Land Transportation (CATT);

• 3)

  The General Inspectorate of Land Transportation (IGTT); and,

• 4)

  The National School of Land Transportation (ENTT).

What is provided in the preceding Article should not be understood as a limitation to the creation, function or future modification of other instances of public administration, when it is considered necessary for better functioning of the Institute. CHAPTER II DIRECTIVE COMMISSION OF LAND TRANSPORTATION (CDTT)

The Honduran Institute for Land Transportation (IHTT) is directed by the Directive Commission which is comprised of three (3) commissioners and a General Secretariat. The commissioners serve in their position for three (3) years, appointed and removed with justified cause by the President of the Republic, from a list of six (6) candidates proposed by the Advisory Council. They must be selected through transparent and public mechanisms. The aforementioned three (3) commissioners must have specialized knowledge or experience in any of the following fields:

• 1)

  Commissioner specialist in the transport sector;

• 2)

  Commissioner specialist in administration; and,

• 3)

  Commissioner specialist in finances. The presidency must rotate annually by decision of the President of the Republic; to guarantee continuity in institutional actions, commissioners shall be appointed in different years.

To be a member of the Directive Commission of Land Transportation (CDTT), the following requirements must be met:

• 1)

  Be Honduran by birth;

• 2)

  Possess a University Degree;

• 3)

  Have professional experience of at least ten (10) years, with knowledge about land transportation;

• 4)

  Be in full enjoyment of civil rights and be of recognized respectability;

• 5)

  Not be a direct or indirect concessionaire of the transportation service, nor be in any circumstance that could cause conflict of interest as a member of the Directive Commission. This prohibition extends to relatives within the fourth degree of consanguinity and the second degree of affinity;

• 6)

  Not be a relative within the fourth degree of consanguinity and second degree of affinity of the holders of the Powers of the State; and,

• 7)

  Have no outstanding accounts with the State.

The Presidency of the Commission must fall to that Commissioner whom the President of the Republic designates for such purpose, rotating it annually; its attributions are the following:

• 1)

  Exercise the legal representation of the Institute;

• 2)

  Ensure compliance with the particular conditions established in the Operation Permits and Operation Certificates; and,

• 3)

  Appoint and remove from their position the Managers, Division Chiefs, Department Chiefs and other officials and employees of the Institute that are considered necessary for its effective functioning and the applicability of this Law.

The attributions of the Directive Commission of Land Transportation (CDTT) are the following:

• 1)

  Comply with and enforce this Law and its regulations, as well as treaties and international agreements ratified by Honduras in the matter of Transportation.

• 2)

  Classify routes, establish service categories and authorize the installation and operation of transportation terminals, when it considers it appropriate in accordance with the regulations issued for such purpose;

• 3)

  Grant, renew, modify and cancel, where applicable, Operation Permits and Operation Certificates as well as special permits; authorize driving licenses and certifications to Land Transportation Pilots, prior to compliance with legal requirements;

• 4)

  Authorize the acquisition, disposal and encumbrance of goods and services required by the Institute, equally any other act or contract concerning such goods and services that pursues the proper purposes of the Institution and the effective application of the Law, executing the necessary contracts for such purpose;

• 5)

  Approve, modify and regulate public transportation tariffs;

• 6)

  Establish the administrative and technical organization of the Institute and its dependencies;

• 7)

  Contract specialized technical and professional personnel for the preparation of socioeconomic, feasibility and market studies, as a prerequisite requirement that serves to inform the approval and modification of tariffs, as well as for the granting of new concessions;

• 8)

  Constitute trusts for the purposes it deems convenient within the framework of this Law;

• 9)

  Issue the necessary regulations for the effective application of this Law, as well as for the adequate functioning of the Institute, without violating the fundamental rights enshrined in the Constitution of the Republic, including free competition and those tending to promote investment; for which it must have the opinion of the Consultative Council and participation of the National Congress through the Commission on Transportation, Housing and Urban Planning;

• 10)

  Prepare the manuals, plans, directives, instructions and other guidelines necessary for adequate institutional functioning;

• 11)

  Discuss and approve the Operating Plan and Annual Budget of the Institute no later than thirty (30) business days before the required date of Budget submission to the State Secretariat of Finance;

• 12)

  Conduct constant monitoring of the implementation and execution of land transportation policies;

• 13)

  Resolve and rule on matters that as a result of the application of this Law are presented for its knowledge, in time and form for analysis by those responsible for the Institute's dependencies;

• 14)

  Impose sanctions for infractions determined in this Law, prior to conducting the procedure established by regulation;

• 15)

  Delegate to other dependencies of the Institute the execution of specific activities, within the scope of its competence, as well as issue the agreements and resolutions necessary for the effective application of this Law and its regulations; and,

• 16)

  Those others that the President of the Republic assigns to it and others that in function of the effective application of this Law, within current legal and regulatory standards, would have to be implemented prior to the opinion of the Advisory Council, except those that in its judgment are strictly administrative or operational in nature. The decisions of the Directive Commission of Land Transportation (CDTT) must be adopted in a collegial manner by the three (3) commissioners. CHAPTER III ADVISORY COUNCIL OF LAND TRANSPORTATION

The Advisory Council of Land Transportation (CATT) is comprised of seventeen (17) Counselors distributed as follows:

• 1)

  Nine (9) representatives of the Government appointed by the President of the Republic;

• 2)

  Six (6) representatives of legally recognized Transportation Sector Organizations, such as the sector of: taxis, mototaxis, urban bus service, interurban service, general cargo transportation and specialized cargo transportation, appointed by them in accordance with the statutory procedure that governs them; and,

• 3)

  Two (2) representatives of Users appointed by legally constituted organizations. The Regulation of this Law must establish the accreditation procedure for representatives of the sectors before the Institute.

The attributions of the Advisory Council are the following:

• 1)

  Propose the Annual Operating Plan (POA) of the Institute;

• 2)

  Propose policies on public transportation at the national level with criteria established based on short, medium and long-term plans;

• 3)

  Study and issue opinions on matters submitted for its knowledge by any dependency or institution involved in public transportation services;

• 4)

  Propose rosters of candidates of technical and professional specialists, whether natural or legal persons, who conduct the socioeconomic, feasibility and demand study for the authorization of tariffs and granting of new concessions;

• 5)

  Verify and follow up on the processing of sanctions applied by the Directive Commission in relation to complaints submitted by the General Inspectorate of Land Transportation (IGTT);

• 6)

  Follow up with the Directive Commission on complaints of which it has knowledge related to violations of this Law and its regulations; and,

• 7)

  Propose to the President of the Republic the roster of candidates for directive commissioners of land transportation, by means of competitive procedure or contest.

The Advisory Council must act under the direction of a President of the Council, who must be elected from among its members by majority vote in the month of December of the corresponding year, who exercises their functions for a period of two (2) years, and may be reelected for one more period. The Regulation of this Law must define the mechanisms of operation of the Council.

The members of the Advisory Council serve ad honorem in their positions. In the case of the Government representatives, their participation is part of the responsibilities attributed to them derived from their positions. CHAPTER IV GENERAL INSPECTORATE OF LAND TRANSPORTATION

The General Inspectorate of Land Transportation (IGTT) is created as an auxiliary body in the execution of the legal powers of the Directorial Commission whose personnel must be selected taking into consideration at least the following requirements:

• 1)

  Suitability for the position;

• 2)

  Recognized honorability and moral solvency;

• 3)

  No criminal record; and,

• 4)

  others defined by the Regulation. In any case, such personnel must undergo confidence evaluation tests, receive training, capacitation and periodic evaluation. In such a way as to enhance their performance based on merit and results, from which, where appropriate, derive the recognition or special incentives that by decision of the Directorial Commission or that are determined by regulation as a product of excellent performance; which equally applies to their separation from the Institute. The General Inspectorate of Transportation (IGTT) is headed by a General Inspector of Transportation and a Sub-Inspector, appointed by the Directorial Commission.

The powers of the General Inspectorate of Transportation (IGTT) are:

• 1)

  Comply with and ensure compliance with this Law and its Regulations;

• 2)

  Comply with the provisions and instructions that within the scope of its powers are issued by the Directorial Commission;

• 3)

  Continuously and alternately carry out patrols, surveillance, control and supervision operations on the country's road network;

• 4)

  Impose sanctions in accordance with the provisions established in this Law and its regulations;

• 5)

  Maintain a record of sanctions applied, for the purpose of determining the recidivism of violators;

• 6)

  Receive complaints, investigate them and send a report of them to the Directorial Commission;

• 7)

  Execute the sanctions imposed for violation of this Law;

• 8)

  Use the implements and resources necessary for the better compliance of its functions;

• 9)

  Issue recommendations directed to the Advisory Council of Land Transportation (CATT); and,

• 10)

  The others granted by this Law and its Regulation.

The Section for Reception and Treatment of Complaints dependent on the General Inspectorate of Land Transportation (IGTT) has the following powers:

• 1)

  Receive complaints filed by Users, concessionaires and Drivers of land transportation or others, regarding any fact, act or circumstance that is considered contrary to the Law and give it legal processing, forwarding them immediately to the General Inspector of Transportation (IGT) for the corresponding legal effects. Such complaints may be filed without any exclusion by any person, provided that they do so responsibly, using for this purpose any existing means of communication that they have available;

• 2)

  Have a Call Center with an open, free and permanent line to receive the respective complaints. To this effect, the telephone number or numbers intended for receiving complaints must be posted in a visible place inside and outside each unit of public and special transportation, with an indication that they are enabled for this purpose. Which must be determined by the Directorial Commission in the Regulation of this Law. It is the duty of the User and any other person to report any fact, act, conduct or circumstance that in their judgment warrants being sanctioned; and,

• 3)

  Serve as a Mediator to resolve conflicts that arise in the transportation sector, provided that this does not imply the commission of crimes.

Civil authorities and the State security forces are obligated to collaborate with the Institute in all activities that involve the application of this Law. CHAPTER V NATIONAL SCHOOL OF LAND TRANSPORTATION

The National School of Land Transportation (ENTT) of the Institute has as its special function the training and capacitation of Drivers of the public transportation service in all its modalities, as well as drivers of private vehicles. The aforementioned Transportation School must have a register of Drivers, which contains at least the work history, criminal record, infractions committed and other relevant ones respectively. The related School must implement public campaigns that promote a better level of quality and socialization to the Users of public land transportation, so that they know their rights and duties. Private driving schools are regulated by the provisions that are established by regulation.

Land transportation of persons or cargo subject to remuneration by means of tariff or payment, in any of its modalities, is a public service of the State that is provided by itself through the Executive Branch or by natural or legal Honduran persons to whom it has expressly authorized by means of an operation permit in the manner, conditions and requirements that this Law and its regulations provide which is perfected by means of a contract between the Institute and the Concessionaires. It is prohibited to offer or actually provide the service of land transportation without authorization from the State through the corresponding Concession. Non-compliance with this provision shall result in the violator bearing the responsibilities established in this Law and its regulations and those typified in the Penal Code. The use of rental license plates is exclusive to the public transportation service of persons and cargo.

For purposes of application of this Law, the following classes of land transportation services are established: 1) Public Transportation Service (STP); and 2) Special Transportation Service (STE).

It is prohibited to grant Operating Certificates to Units whose age is, as the case may be:

• 1)

  Buses:

  • a)

    With sixty-one (61) or more passengers, the age must not be greater than twenty (20) years and up to five (5) additional years with repowering;

  • b)

    With thirty-one (31) or more and up to sixty (60) passengers, the age must not be greater than fifteen (15) years and up to five (5) additional years with repowering; and, c) With fifteen (15) or more and up to thirty (30) passengers, the age must not be greater than fifteen (15) years and up to five (5) additional years with repowering;

• 2)

  Taxis: The age must not be greater than fifteen (15) years and up to five (5) additional years with repowering;

• 3)

  Mototaxi: The age must not be greater than eight (8) years and up to two (2) additional years with repowering;

• 4)

  Cargo: In the case of the Tractor Unit, the age must not be greater than twenty-five (25) years and up to five (5) additional years with repowering; and,

• 5)

  Dump truck: the age must not be greater than twenty (20) years and up to five (5) additional years with repowering. When the concessionaire, owner of a Unit that exceeds the maximum established here, intends to continue providing the service, must obtain a certificate issued by technicians from public or private workshops authorized by the Institute, in accordance with the Pro-Renewal Plan.

Mandatory insurance is established for all classes of motor vehicles, whether or not intended to provide the service of transportation of persons and cargo, to respond for damages to third parties caused in traffic accidents or others for which they must be responsible. In cargo transportation, mandatory insurance is established, which must be assumed separately, at the expense of the owner of the cargo, of the tractor unit and trailer and its accessories of the container and of the facility, individually, as the case may be. The minimum amount and coverage must be regulated in the respective Regulation of this Law, proof of which must be carried by the driver of the vehicle when circulating on the public roads of the country. The provisions of this Article must apply gradually and are subject to what is provided in articles 20 and 58 of the Framework Law of the Social Protection System contained in Decree No. 56-2015 dated July 21, 2015 which refers to universal coverage of traffic accidents as well as the eventual entry into force of the Traffic Accident Insurance Law. When a contract is executed between the owner of the truck whether articulated or not articulated, the primary obligation is that the cargo be insured by the owner thereof.

Vehicles for land transportation with foreign license plates can only circulate in the territory of the State if at the time of entry they demonstrate having insurance with coverage for damages to third parties, otherwise they must obtain the mandatory insurance referred to in this Law with at least temporary coverage. The foregoing is understood without prejudice to the International Treaties on transportation of which Honduras is a party, in observance of the principle of reciprocity.

The international land transportation service of passengers and cargo is regulated by the Institute, in accordance with this Law, its regulations and the respective Agreements and other applicable international instruments, observing the principle of reciprocity. This type of service can only be provided in the country if the Unit travels a determined route from one point to another, without allowing the boarding of passengers or cargo whose point of origin and destination is within the territory of the State. It is understood that only cargo trucks, trailers, tank trucks, semi-trailers, chassis and containers bearing license plates from countries that are signatories to integration agreements executed, can provide the cargo transportation service in transit within the territory of the State or from a point within it to another destination within any of said countries or vice versa.

The size and useful space within inter-city transportation Units is determined by the distance to be traveled within the corresponding route, as well as topographic conditions and urban requirements. The Regulation of the Law must establish the particular conditions on this aspect, focusing on respectful treatment of Users and respecting their special conditions. The Institute must establish the appropriate mechanisms by which Units are sustainably substituted in current form gradually.

The Institute must ensure that the organization and functioning of the transportation system conforms to the Nation Plan in relation to transportation policies, in accordance with the following general guidelines:

• 1)

  All applications for concession for the provision of public transportation service and their renewals must be requested and granted based on a comparative analysis with the opinions previously established by the respective technical and legal departments, based on socioeconomic studies of market feasibility and other technical tools, which must be public for the entire sector. Once the originals are presented, follow-up may be conducted electronically;

• 2)

  The State and the Concessionaires must satisfy the needs of the community with the highest degree of effectiveness and efficiency, under the service quality standards that the Administration determines, giving special attention to specific population groups that the Executive Branch determines, being able to grant targeted subsidies;

• 3)

  The remunerative public transportation service of persons and cargo must be provided with a fleet of Units certified each year; the workshops that for this purpose the Institute certifies or that it designates, must verify compliance with the requirements of: operation, comfort, safety, including the installation of necessary devices, using technical and scientific criteria, consistent with the applicable international standards, always taking into account the specifications issued by the manufacturer of the transportation Unit. The certification of proper operation must be carried in a visible place on each Unit. In the Regulation the criteria to be followed must be determined;

• 4)

  Ensure the sustainability of the transportation system through the economic-financial equation of tariffs and contracts as the case may be;

• 5)

  Coordination and management with other governmental institutions so that funds are allocated with priority for the design, construction and maintenance of infrastructure to support the public transportation system;

• 6)

  Governmental or municipal, private or mixed development subsidiarily, of the construction and operation of terminals, with prior approval of the Institute;

• 7)

  The approval of construction plans for urban or inter-urban transportation terminals, regarding the minimum requirements of safety, comfort and operability of Users must be in coordination with municipal development or territorial planning plans, whether these are constructed by the central government, by the municipality or by private initiative, this being the power of the Institute; and,

• 8)

  The protection of the environment, for which the Institute must require operators of the service to comply with the regulations in force in the country on this matter.

Concessions are in principle non-transferable. However, exceptionally this right may be acquired or ceded totally or partially, with prior authorization of the Institute provided that the requirements established in this Law and its regulations are met. In the case of death or incapacity of the holder of a concession, their heirs or representatives may continue operating the service. If they demonstrate their intention to continue providing the service and meet the legal and regulatory requirements in force, in which case they must conduct the proceedings for its renewal, otherwise the cancellation of the Concession must proceed.

Vehicles intended for public land transportation cannot be used for purposes other than those established in the Operation Permit and Operating Certificate, nor for private use of the holder or other persons, except with special permission granted by the Institute.

In the Permits for Operation and Certificates of Operation, the basic conditions for providing the Service must be established. At any time, the Institute may modify such conditions when demanded by the public interest.

Without prejudice to the fact that other modalities may be included in the future, Public Land Transportation is classified as:

• 1)

  Urban: Which may be: Regular, Rapid, Executive, Rapid Transit Buses (BTR) and other mass transit systems that may be implemented in the future;

• 2)

  Inter-urban: Which may be Regular, Direct, and Executive;

• 3)

  Taxis: Which may be fixed-point or Collective, Sweep Service, Executive Service, and Radio Taxi Service;

• 4)

  Mototaxi;

• 5)

  Motocargo;

• 6)

  Cargo: Specialized and Non-Specialized or General;

• 7)

  International: Which may be for Persons or Cargo; and, 8) Other modalities that may arise in the future and that the Institute authorizes. The Institute must issue the special regulation that governs the specifications and particularities of each of these services.

The Institute may grant new concessions, provided that the demand is not totally covered or the Public Land Transportation Service does not exist and the Institute so determines through the corresponding technical and socioeconomic studies.

The operation of new permanent regular Land Transportation services must be granted by the Institute through a selection procedure for the best technical and economic offers from potential concessionaires. The selection must always be made taking into account what is established in this Law, observing for this the principles of transparency, publicity, and competition, following feasibility studies. For the purposes of the preceding paragraph, a technical study must be conducted previously to permit the requested operation. Concessionaires who by seniority have legally authorized concessions may submit their offers to participate in the selection process on equal terms. In this case, the bidders must pay the amount equivalent to the technical studies authorized by the Institute.

For purposes of subjecting the concession selection process for routes, the Institute must make a classification thereof, which must be established in the Regulation.

When a variation in Service demand requires it, the Institute, ex officio or at the request of a party, must order the establishment of new schedules and route extensions, in accordance with what the respective technical studies establish.

Natural or juridical persons who are owners or lessees of public land cargo transportation equipment, whether articulated or not, have the obligation to obtain from the Institute Permits for Operation and Certificates of Operation, for which they must submit the pertinent applications, complying with the requirements demanded by this Law and its Regulations.

Non-Specialized Cargo is understood to be the transportation of products and merchandise that do not require special handling and do not represent a threat to the security of persons and property.

Specialized Cargo is understood to be the transportation of all those products that require special treatment, equipment, and handling and that may pose a risk to the safety of persons and the environment, such as: petroleum derivatives, chemical products, corrosives, insecticides, gases, among others; their transportation must be carried out in trailers with technical specifications and hazard warnings. The transportation of petroleum derivatives, chemical products, corrosives, insecticides, and gases, among others, must be carried out in trailers that have the required technical conditions and in which the international nomenclature of the material being transported must be visibly specified. For purposes of this Law, hazardous materials and wastes are: substances, elements, inputs, products, and by-products or their mixtures in solid, liquid, and gaseous states that, because of their physical, chemical, and toxicological characteristics or explosiveness, represent a risk to the health of persons, the environment, and property.

To obtain authorization from the Institute to transport specialized cargo, the interested party must submit the corresponding application, which must be sent to the corresponding Fire Department so that within a period of three (3) days it issues the corresponding technical opinion, which serves as the basis for granting or not granting the permit. The transportation of this type of substance must be subject to special regulation.

Vehicles intended for cargo transportation that transport agricultural equipment and machinery, for construction or that transport Over-Dimensioned Cargo, in compliance with the provisions contained in the international treaties and agreements of which Honduras is a party, must comply with the following provisions:

• 1)

  Have a Special Permit issued by the Institute where the weight or dimension of the cargo, the origin and destination of the trip, and the duration of said Permit are specified;

• 2)

  Display visible hazard signals, such as: banners with fluorescent and electric colors, reflective tape, and illuminated flashing lights; and,

• 3)

  Other requirements that may be established in the Regulation of this Law.

In order for a cargo transportation vehicle to circulate on the paved road network of the territory of the State, it must have a certificate or manifest of origin, specifying the weight of the cargo it is transporting. The owners or those responsible for the cargo must have the pertinent devices certified by the Institute, in order to issue the corresponding certificate or manifest. The Institute must implement systems of fixed scales and mobile scales or other types of technology for the control of weights and dimensions of vehicles intended for land transportation in its different modalities. In the Regulation, the provisions for the implementation and control of this system must be established. Equipment intended for the public cargo transportation service in any modality must comply with the conditions of weight, dimensions, capacity, graphic or electronic control of maximum speed, control of environmental pollution, and other technical specifications. The Institute must include in the Regulation the necessary provisions to comply with what is established in this Article.

Cargo transportation service equipment that temporarily enters the country must have special identification, and it must be verified that such equipment leaves the country once it has concluded the purpose for which it entered the country.

Vehicles intended for the provision of public cargo transportation service must be identified with a sequential number, for the purpose of maintaining orderly markets and satisfaction of the demand generated. In the Regulation, the corresponding nomenclature must be established.

In the Permits for Operation that serve as a document accrediting the concession for the provision of Public Transportation Service, the following data must be recorded at a minimum:

• 1)

  Permit Number;

• 2)

  Name, business name, or corporate designation of the holder;

• 3)

  Route;

• 4)

  Schedules;

• 5)

  Itineraries;

• 6)

  Fares;

• 7)

  Date of Issuance;

• 8)

  Date of Preparation or Printing;

• 9)

  Expiration Date;

• 10)

  Signature and seal of the competent Authority;

• 11)

  Barcode or any other similar code that is deemed convenient and that allows the authenticity thereof to be effectively verified;

• 12)

  Obligations, Prohibitions, Sanctions; and, 13) Others that are established by regulation.

A single Operating Permit may cover one or more vehicles, in accordance with the provisions established in the Regulation of this Law, with a validity period of twelve (12) years, and may be renewed in accordance with the requirements established in this Law and its Regulation. For the particular case of the Mass Transit System for Persons, Integrated Public Transportation System (SITP), Bus Rapid Transit (BTR), when applicable, the validity period is twenty-five (25) years.

The Operation Certificate is the document issued by the Institute that accredits the authorization to provide the Service. Every Driver of a transportation Unit must carry in a visible location the corresponding original document, which has a validity of three (3) years, and may be renewed in accordance with this Law and its regulations. The Operation Certificate that is not used within sixty (60) days shall be permanently canceled. For each motor vehicle and vehicle with or without self-propulsion, legally authorized, an Operation Certificate must be issued, which must contain, among others, the following data:

• 1)

  Number of Operating Permit;

• 2)

  Number of Operation Certificate;

• 3)

  Name, corporate name or designation of the holder;

• 4)

  Characteristics of the vehicle;

• 5)

  Class of service;

• 6)

  Modality of service;

• 7)

  Route, Area of operation;

• 8)

  Schedules and Itineraries;

• 9)

  Fares;

• 10)

  Date of Issue;

• 11)

  Date of Preparation or Printing;

• 12)

  Date of Expiration;

• 13)

  Category of service;

• 14)

  Number of seats or passengers;

• 15)

  Signature and seal of the competent Authority;

• 16)

  Barcode or any other similar code that is deemed convenient and that permits effective verification of its authenticity; and, 17) others that shall be established in the Regulation of this Law.

The prior requirements for the issuance of Operation Certificates of any class, as referred to in this Law, are: For the first time, for increases, Unit changes and renewals, before beginning operations, Concessionaires must submit the motor vehicle or vehicles intended for the provision of the service to physical and mechanical inspection in workshops authorized by the Institute at the national level, in order to determine whether they meet the safety, comfort, hygiene, and other requirements necessary to provide an efficient service. Similarly, the owners of the Units must previously execute the concession contract to operate the respective service, which must contain the requirements that are approved by regulation, including the authorization so that in cases qualified by the holder of the Executive Power, the corresponding Unit may operate under the terms of Article 21 of this Law.

Operating Permits and Operation Certificates are extinguished for the following causes:

• 1)

  Expiration of the periods of validity;

• 2)

  Failure to begin the provision of the authorized service in accordance with this Law;

• 3)

  Suspend totally or partially the service without justified cause, in the opinion of the Institute;

• 4)

  Transfer the concession by any title, except in cases authorized by the Institute;

• 5)

  Alteration of the service conditions established in the concession;

• 6)

  Serious breach of the obligations established in the concession;

• 7)

  Renunciation of the concession; and,

• 8)

  In general, by the same causes that extinguish administrative acts and other duly justified causes that shall be established by regulation. The renewal of Operating Permits and Operation Certificates must be requested with sufficient advance notice in order to avoid interruption of the service. CHAPTER IV SPECIAL TRANSPORTATION SERVICE

The special transportation service is that which is provided by means of a Permit granted by the Institute for each Unit owned by natural or legal persons whose business is not the provision of public transportation service, but who have the need to transport cargo or persons in function of a principal activity that they develop, or that being this their principal activity, they require a special permit from the Institute for the transportation of specific groups of persons whose single point of origin or destination is common, who do not share the stations designated for regular public service and by virtue of a contract. Units dedicated exclusively to this type of Service must have markings in a distinctive colored stripe that defines the nature of the Service with the registration number, preceded by the initials of Special Transportation Service (STE), which must be determined in the Regulation. The use of Units registered in regular routes of public transportation service in Special Transportation Services and vice versa is prohibited. The Regulation must establish the particular conditions regarding the requirements in which each form of this type of service must be provided.

The permit for the provision of special transportation service must be granted after a study of economic-financial and operational feasibility prepared by the Institute, at the request and cost of the interested party, with which its operational viability is demonstrated without interfering with the Public Transportation Service. They must comply with the same technical requirements that are required of Concessionaries of the Public Transportation Service, regarding safety, quality and efficiency as applicable.

For the operation of Special Passenger Transportation Service, only authorized vehicles may be used, which may not in any case have a capacity of fewer than fifteen (15) seated passengers. In the case of Tourism Permits, the Institute may authorize, after prior technical study, Units of lesser capacity or different physical and mechanical characteristics.

Student Transportation is that which is provided exclusively to students of preschool, primary, secondary, technical, and university levels, to and from public or private educational centers or other students who require the transportation service. The owner of the vehicle must execute a contract among the administrators of the educational centers with the beneficiaries of the service or with the parents' society, whose stipulations must be established in accordance with this Law and its regulations, and must in all cases previously verify the enrollment of the User in the respective educational center. The permit that is granted has a validity period equal to that of the respective service contract or contracts, and must be renewed each educational period.

Worker Transportation is that which is provided to employees of public or private companies or institutions covered by a contract between the Concessionaire and the company or institution, stipulating the price by mutual agreement. By means of Regulation, the requirements for providing this Service must be established. This same provision applies to the Transportation of Social Organizations or Churches. The special service must carry a stripe with the registration number.

Tourism Transportation is provided to persons for the purposes of organized tourism, with or without regular schedules and itineraries. Services between hotels, transportation terminals, sites with tourist and commercial attraction are included. For this type of service, a Permit in accordance with this Law and its Regulations is required. The price for the service provided must be established by means of the respective contract.

Permits for Units used in Excursions must be authorized by the Institute. The scope, requirements and other elements for the granting of these Permits must be regulated in the Regulation of this Law.

Natural or legal persons who use their own motor vehicles to transport their products, harvests, inputs or cargo, from the place of production to the place of processing, sale or final destination; as well as their employees or persons who collaborate with their productive activity, must have a special permit granted by the Institute. Return cargo must be limited to inputs and other articles necessary for related activities. Exempt from the Permit referred to in this Article are vehicles with a capacity not greater than three (3) tons, which are exclusively dedicated to agricultural or livestock activities of importance for the national economy or personnel under their charge.

The validity of Special Transportation Service (STE) Permits is one (1) year. They must be renewed if the service provision conditions continue to exist. The cost of renewal is one quarter (1/4) and one (1) minimum salary in the highest scale of the transportation sector per each operation permit. The Authorization for Special Transportation Service (STE) must be granted in accordance with the conditions established in the contract, such as: route, schedules, points of origin and destination, mandatory stops and the characteristics of the vehicle or vehicles used for the provision of such service, when applicable.

In Special Transportation Service (STE), the price must be stipulated by mutual agreement between the parties, and must be set forth in a service provision contract.

Natural or legal persons authorized for the provision of Special Transportation Service (STE) are obligated to comply with all safety conditions established by this Law and its regulations. Among others, those generally applicable to public service and particularly to special service are the following conditions:

• 1)

  Each Unit must have a fire extinguisher;

• 2)

  First aid kit with the minimum supplies determined by the Institute;

• 3)

  Communication system;

• 4)

  Safety belts for each seat;

• 5)

  Containers for garbage collection;

• 6)

  Special seats for persons with disabilities, pregnant women and seniors;

• 7)

  Emergency exits properly marked, accessible and in good condition, in the proper quantity in accordance with the capacity of the Unit;

• 8)

  External and internal light indicators and other conditions that may arise as the service evolves. In the student service, there must be the accompaniment of an accredited and certified adult by the educational center as assistant to the driver, who supports the students in their needs, ensuring that they travel under the regulations established in the Regulation and watch over their safety within the Unit, as well as outside of it, in the immediate moments prior to boarding or disembarking.

Natural or legal persons providing towing, drilling, and similar services must obtain a permit from the Institute.

When extraordinary demand for passenger transportation services arises due to festivities, fairs, pilgrimages, or any other event, the Institute may grant special permits to address the same, in which the period of validity must be established. CHAPTER V PAYMENT OF EMISSION RIGHTS

For the Issuance of Operating Permits, Operation Certificates corresponding to the concession, special transportation permits, extraordinary demand permits, and others, the following must be paid:

• 1)

  For the first time: From one (1) to five (5) minimum salaries: The Regulation must establish the classification for the application of payments by category of transportation service; in the case of mototaxi service this must be half (1/2) minimum salary;

• 2)

  Unit increases and assignment of rights, which imply the Issuance of the Operation Certificate in the public transportation service, the equivalent of one (1) minimum salary; in the case of mototaxi it must be half (1/2) minimum salary;

• 3)

  Renewal of Operating Permit, the equivalent of one-fifth (1/5) minimum salary;

• 4)

  Renewal of Operation Certificate, the equivalent of one-fifth (1/5) of minimum salary;

• 5)

  Modifications to any title of the Operation Certificates, the equivalent of one-seventh (1/7) of minimum salary;

• 6)

  Modifications due to schedule changes, itinerary changes, Unit changes, and inclusion of intermediate points, the equivalent of one-fifth (1/5) minimum salary;

• 7)

  Extension of routes, the equivalent of one-fifth (1/5) of minimum salary;

• 8)

  Permits for Special Transportation, the equivalent of between half (1/2) to two (2) minimum salaries; and,

• 9)

  Special permits to cover extraordinary demand, the value must be established by the Board of Directors in the Regulation.

To sustain its economic autonomy, as well as to expedite the procedures and processes carried out ex officio by the Institute, it must create a Trust with eighty percent (80%) of the payments made from fines, rights, fees, sanctions, and emission rights, said payments must be managed through the National Financial System, personally by the interested party or through a representative, through formats agreed between the Institute and the institution of the National Financial System responsible. The remaining twenty percent (20%) remains subject to the General Treasury of the Republic. The use of the Trust funds must be established in the Trust contract and in the Regulation of this Law.

Every value referenced to minimum salary must be understood as referring to the highest scale within the transportation sector. CHAPTER VI COST OF SERVICE, TARIFFS AND PAYMENTS

The fixing of maximum tariffs for Public Transportation, in its passenger modality, is the exclusive responsibility of the Institute, which for this purpose must conduct technical studies, valuation, and fixing thereof, making use of the formulas established for this purpose by regulation. Tariffs must be established by the Institute based on the provision of Public Service by the Concessionaire, taking into account the different variables of specific operating costs, such as: depreciation of Units, fuels and lubricants, compulsory vehicle insurance, cost of tolls, tax charges and fees, among others, as well as considering reasonable profit in accordance with the country's reality, which the concessionaire must receive as compensation for the investment made. The Regulation must establish the particulars regarding tariff authorization and review. The minimum tariff in Cargo Transportation must be set by the Institute, without prejudice to cargo transportation entrepreneurs of this modality being able to negotiate with Users of the Service values higher than the minimum tariff established by the Institute, taking into account the weight of useful load, the distance to be covered, road conditions, and other relevant factors.

The Institute may conduct tariff reviews at any time, ex officio or upon request of a party. For this purpose, uniform criteria must be applied to Service concessionaires.

Tariffs must cover all real costs, under normal conditions of productivity and efficiency. They must allow adequate amortization and reasonable business profit, at the Institute's discretion. The indicators to determine real costs and profitability must be updated and published biannually by the Institute. Subsidies for tariffs or bonuses must not be granted, except those that in the future may be established by the Executive Branch in favor of special population groups to the extent that economic conditions permit.

The collection of tariffs in the modalities of urban buses and taxis must be carried out through the prepaid card system, for which an efficient mechanism must be established in the Regulation. The other modalities use the cash payment system or other mechanisms, or may use the system established in the previous paragraph, to the extent that for reasons of public interest or by decision of the Concessionaires it is deemed necessary to implement.

It is mandatory that Concessionaires display in each vehicle and in the respective terminals the tariff approved by the Institute. In both cases in clearly visible places. The right to travel without cost in the Units of urban Public Transportation is granted to:

• 1)

  Children under five (5) years of age;

• 2)

  Agents of the National Police of Honduras and other State security bodies, who wear their respective uniform and identify themselves properly;

• 3)

  Employees of the General Inspectorate of Transportation (IGT), under the same conditions as the previous item;

• 4)

  Persons over seventy (70) years of age, who identify themselves properly; and minors of that age to whom the discount established by the respective Law shall be applied; and,

• 5)

  Persons who are notoriously disabled or have special challenges. CHAPTER VII OBLIGATIONS

Users of public and special terrestrial transportation, of persons and cargo, to the extent applicable, are obliged to:

• 1)

  Maintain appropriate conduct within the Service Units and terminals;

• 2)

  Cooperate with cleanliness to maintain the good condition of the Units;

• 3)

  Not throw garbage from transportation Units;

• 4)

  Respect the administrative provisions issued for the provision of the Service;

• 5)

  Declare the cargo or baggage they transport;

• 6)

  Report anomalies in the provision of the Service to the competent Authorities;

• 7)

  Pay the tariff set for the use of the Service;

• 8)

  Respect the physical and moral integrity of other Users and Drivers;

• 9)

  Respect the preferential seats of the Units and spaces provided for the transportation of persons with disabilities, pregnant women, and elderly adults;

• 10)

  Not speak with Drivers while they are driving; and,

• 11)

  Others that may be established by regulation.

The obligations of the Concessionaire of paid transportation of persons and cargo are, to the extent applicable:

• 1)

  Comply with the particular conditions established in the Operating Permits and Operation Certificates;

• 2)

  Replace vehicles that are temporarily withdrawn from service, for mechanical reasons duly demonstrated, traffic accident, with others of equal or greater capacity, with better or similar characteristics. This must be reported to the Institute on the same day of substitution for its approval. The same does not have permanent character nor is it recognized as a fleet increase or tariff-wise. This temporary substitution cannot be longer than one (1) month, after which, unless upon request of the Concessionaire and under strict criteria of the Institute, this period may be extended;

• 3)

  Replace only those Units that are permanently withdrawn from Service, in accordance with the guidelines established by the Institute and in the following cases: i) Those declared as total loss or that have mechanical problems duly demonstrated that pose a danger to the integrity or safety of Users; ii) Those that do not comply by their characteristics with a Public Service in accordance with the principles of accessibility and user safety; and, iii) Those that have completed their useful life, in accordance with the regulations in this Law that regulate the maximum age of Units and in observance of the provisions of Article 23 thereof;

• 4)

  In those services where it is necessary to request fleet reinforcement with reserve Units due to extraordinary demand, the Concessionaire is obliged to request it with at least fifteen (15) days in advance and the Units to be registered must be of better or similar physical and mechanical characteristics to those registered in the Public Transportation Service for that route, in addition to complying with the documentation necessary to provide the Service;

• 5)

  Units registered on routes cannot be used to provide special services, except for the exceptions established in this Law;

• 6)

  Not suspend the provision of service during the validity of the concession, except in case of force majeure or fortuitous event at the judgment of the Institute;

• 7)

  Keep insurance policies current;

• 8)

  Pay the Institute the emission rights for Operating Permits, Operation Certificates, and other corresponding obligations for each Unit authorized in the provision of the service;

• 9)

  Comply with the service quality evaluation system;

• 10)

  Allow entry of Inspectors and Technicians of the Institute or whoever the Institute designates for the performance of all those inspections required in its facilities, Units, and equipment;

• 11)

  Provide special treatment to elderly adults, pregnant women, and persons with disabilities or special challenges, as well as grant the legal discount;

• 12)

  Provide training together with the Institute to those hired for the operation of its Units, in at least: Basic mechanics, customer service, stress management, accessibility, knowledge of the country's history, places of interest, and basic knowledge of other languages;

• 13)

  For the sake of User safety and public interest, Drivers of Public Passenger Service must be certified through psychometric exams and toxicological tests of their fitness to perform the position, in addition to reviewing their criminal and police records, as a precautionary measure to prevent persons with such records from driving Public Transportation Units;

• 14)

  Maintain the cleanliness of the Units and the service installations;

• 15)

  Have uniformed and fully identified administrative and operational staff of the company;

• 16)

  Transport the User's baggage, when the physical conditions of the Unit permit and this does not demand additional space within the Unit;

• 17)

  Have two (2) seats duly labeled near the boarding doors for preferential use of persons with disabilities or special challenges, elderly adults, pregnant women, and nursing mothers;

• 18)

  Install GPS Devices, cameras, panic buttons, and others that may be necessary to guarantee User safety;

• 19)

  For correct identification, place in visible places inside or outside of the transportation Units, the name and/or logos of their respective company, without this meaning that it should be considered as advertising of their name;

• 20)

  Attend and send Drivers to training ordered by the Institute;

• 21)

  Establish for the benefit of Users, under the conditions determined by the Institute, all those services and facilities that, while not being indispensable for transportation, are connected to it;

• 22)

  Respect for Drivers the labor rights guaranteed in the laws in force on the matter, who for all purposes of this Law are considered as employees of the concessionaires; and,

• 23)

  Allocate to the fund of the plan for solidarity promotion and mutual aid, PRO SOLIDAR one percent (1%) of total tariffs collected through the prepaid system.

The obligations of Drivers of Public and Special Terrestrial Transportation are, to the extent applicable:

• 1)

  Approve the certification processes implemented by the National School of Terrestrial Transportation (ENTT);

• 2)

  Obtain and carry during operation of the transportation unit, their license;

• 3)

  Use the uniform provided by the Concessionaire and approved by the Institute;

• 4)

  Display at all times the due respect and proper treatment toward Users of the Service and the general population;

• 5)

  Respect the current traffic regulations, including speed, stops, routes, schedules, and other legally established obligations;

• 6)

  Carry in a visible place their identification; and,

• 7)

  Verify the declaration and labeling of passenger baggage.

For the purposes of this Law, Connected Services to public transportation are those provided in terminals and dry ports, according to the corresponding mode of transportation. Likewise, Connected Services are those of: cargo, advertising provided it does not interfere with safety measures and mail services, personal hygiene services, convenience stores, restaurants, rest areas, air, water, basic automotive maintenance, and others necessary for the provision of the service. The designs for the construction and operation of the facilities where the Services referred to in the previous paragraph function must contemplate the establishment of systems or mechanisms appropriate for the movement of persons with disabilities or special challenges. The Regulation must establish the conditions under which Connected Services must function. CHAPTER IX VEHICLE FLEET RENEWAL

The Institute with the purpose of making transportation services efficient and improving quality must establish a Vehicle Fleet Renewal Plan of the vehicular fleet, which is called "MOTOR VEHICLE RENEWAL PROGRAM (PRORENOVA)", which must be done gradually and sustainably in accordance with the socioeconomic and market reality, having a period of five (5) years from the validity of this Law, to renew the Units defined in the Regulation, likewise in cases of Unit changes, a grace period of three (3) years must be granted to replace them based on the proposed age.

In order to achieve the objective established in the preceding Article, the Central Government must grant the necessary tax incentives exclusively to the Concessionaires of the public transportation service, so that they may manage the direct importation of vehicles for service use, basic basket of spare parts and supplies necessary for their maintenance and operation, under conditions in accordance with national reality, respecting the Treaties or Agreements in force regarding free trade. Furthermore, it must endeavor with public or private institutions of the National Financial System to open a soft credit line, with interest rates and terms in accordance with the income generation of the Concessionaires.

The Exploitation Permits and Operating Certificates may serve as bank guarantees, without prejudice to the policies of the corresponding financial institution, solely and exclusively in the event that the Concessionaire requires financing to renew the vehicle fleet, with the intention of improving the provision of the service. To obtain the bank guarantee, prior written authorization from the Institute is required.

The Institute must issue the REGULATION FOR THE MOTOR VEHICLE RENEWAL PROGRAM (PRORENOVA). CHAPTER X INFRACTIONS

An infraction is any action or omission that, without being constitutive of a crime, violates the provisions of this Law and its regulations, as well as any other applicable legal norm in which Concessionaires and Pilots of Public and Special Transportation incur illegality. Infractions are classified as Very Serious, Serious, and Minor.

The following are Very Serious Infractions:

• 1)

  Offering and providing the land transportation service without having obtained the proper Concession from the State or the proper license for Operators issued by the Institute;

• 2)

  Providing the service with false or adulterated documents;

• 3)

  Permitting, renting or disposing in any way of the use of the concession granted by the Institute, except in cases duly qualified at the discretion of the Institute, which in that case may authorize it;

• 4)

  Offering bribes to officials or employees of the Institute to obtain a licit or illicit benefit;

• 5)

  Permitting the Concessionaire that the Pilots of the transportation Units in their charge work under the effects of alcoholic beverages or other psychotropic substances or narcotics;

• 6)

  Driving the Pilot any Unit under the effects of alcoholic beverages or other psychotropic substances or narcotics;

• 7)

  Driving the Units exceeding the established speed limits;

• 8)

  Disobeying the provisions issued by the Institute, without prejudice to incurring the corresponding criminal responsibility;

• 9)

  Failure to comply with the particular conditions established in the Exploitation Permits and Operating Certificates;

• 10)

  Transporting passengers or cargo in number or weight exceeding the legal limit established or adulterating the weight entered in the manifest of origin;

• 11)

  For international transportation: traveling on the country's road network without carrying the respective insurance against accidents and damages for which they must respond;

• 12)

  Non-compliance with what is established in Article 26 of this Law;

• 13)

  The other related provisions applicable, contained in Article 98 of the current Transit Law; and,

• 14)

  Any others that the Board of Directors consider a serious violation of this Law, following the corresponding regulatory procedure.

The following are Serious Infractions:

• 1)

  Offering and providing the public land transportation service when the Concession or license, as the case may be, is expired, unless the interested party demonstrates having requested it in a timely and proper manner;

• 2)

  Using the Units for purposes other than those established in the exploitation permit and operating certificate;

• 3)

  Failure to comply with applicable obligations contained in Articles 71, 72, and 73 of this Law;

• 4)

  Offending, threatening or in any way disrespecting the authority of the Institute, as well as offering payment or reward for allowing the omission of any obligation imposed by this Law;

• 5)

  Failure to carry within the Unit the corresponding Operating Certificate;

• 6)

  Driving the Units without the respective license granted by the Institute;

• 7)

  Recidivism in a Serious Infraction becomes a Very Serious Infraction; and,

• 8)

  The related provisions applicable from Article 99 of the current Transit Law.

The following are Minor Infractions:

• 1)

  Using vulgar or immoral vocabulary within and outside the transportation Units;

• 2)

  Treating in a gross, offensive manner or in any way that damages the dignity and honor of Users;

• 3)

  In general, incurring in conduct that implies an obstacle to the application of this Law;

• 4)

  Failure to comply with the general conditions contained in the Exploitation Permits and Operating Certificate;

• 5)

  Failure to carry in the corresponding Unit, in a visible place inside and outside thereof, the telephone number for complaints;

• 6)

  Recidivism in a minor infraction becomes a Serious Infraction; and,

• 7)

  The other related provisions applicable, contained in Article 100 of the current Transit Law. Through regulatory means, the Board of Directors, with the opinion of the Advisory Council, may determine and classify the definition of other behaviors, actions, or omissions that in observance of this Law could be constitutive of an infraction. CHAPTER XI SANCTIONS

Whoever commits an infraction is subject to the regime of gradual increase of sanctions, applicable to all types of infractions. In the case of Very Serious Infraction:

• 1)

  For the first time, equivalent to one-fourth (1/4) of the minimum salary;

• 2)

  For the second time with a fine equivalent to one-half (1/2) of the minimum salary and the seizure of the transportation Unit until payment is made effective, as well as the suspension of the Driver's License and the Operating Certificate, and the offender must submit to a training process depending on the infraction committed to the satisfaction of the National School of Land Transportation (ENTT); and,

• 3)

  For the third and final time, a fine equivalent to two (2) minimum salaries must be applied, the seizure of the Unit for six (6) months and the referral of the sanctions file to the Board of Directors, in order to initiate the corresponding criminal action, as well as the consequent permanent cancellation of the driving license or Operating Certificate.

Whoever commits a Serious Infraction must be sanctioned with a fine of:

• 1)

  For the first time, equivalent to one-sixth (1/6) of minimum salary;

• 2)

  For the second time, equivalent to one-fourth (1/4) of minimum salary; and,

• 3)

  For the third and final time it becomes a very serious infraction, in this case, the gradual mechanism established in the preceding Article must be applied.

Whoever commits a Minor Infraction must be sanctioned with a fine of:

• 1)

  For the first time, equivalent to one-eighth (1/8) of minimum salary;

• 2)

  For the second time, equivalent to one-fourth (1/4) of minimum salary; and,

• 3)

  In case of recidivism it becomes a serious infraction, in this case, the gradual mechanism established in the preceding Article must be applied.

Every sanction imposed in minimum salary must be qualified by categories of economic activity norms; it is understood that this refers to the highest scale within the transportation, storage, and communications sector, which may be applied according to the corresponding table and geographical zone. TITLE IV PUBLIC TRANSPORTATION SECURITY

The security of Users of public land transportation, urban and interurban, as well as of the Concessionaires and Operators of transportation Units is declared a matter of public interest and national priority.

The National System of Public Land Transportation Security is created, which must be directed by the National Defense and Security Council. Concessionaires have the right in accordance with this Law to participate in the planning and implementation of communication or information technologies, which includes among others: metal detector, Global Positioning System (GPS), the use of a real-time camera system within the Units and distributed at different points of the route, monitoring and tracking system of transportation Units, panic button or alert mechanisms to authorities to achieve immediate response against criminal activities or contingencies that may endanger the security or physical integrity of Users, Concessionaires, or Pilots of land transportation. No passenger transportation Unit shall be issued an operating certificate without first verifying that it has the security devices referred to in this Article.

The National Defense and Security Council must create a special inter-institutional unit of security forces, intelligence, prevention, reaction, and investigation, exclusively to provide security to Users of land transportation, Concessionaires, and Pilots.

The Public Ministry must designate Special Prosecutors with national territorial authority, to exclusively and prioritarily address complaints presented to it regarding crimes committed against Users of land transportation, Concessionaires, and Pilots.

The Council of the Judiciary of the Judicial Branch must appoint Judges with national territorial jurisdiction to hear criminal proceedings initiated for crimes committed in the course of service against Users of public land transportation, their Drivers, Concessionaires, or in public transportation Units. The National Defense and Security Council may expand the provisions set forth in the preceding articles related to this matter, to public transportation and specialized and non-specialized cargo transportation.

The operation of the system may be carried out through the modality of public-private association with the participation of Concessionaires of public land transportation. The Institute may promote the creation of operative consortiums for purposes of control and security.

The roads, stations, and terminals dedicated to the transit of public passenger transportation remain subject to the Security System established in this Chapter. TITLE V FINAL AND TRANSITORY PROVISIONS

Without prejudice to the provisions established in numeral 7 of the preceding Article 11, the regulations for the effective compliance with this Law must be issued by the Executive Power within a period of one hundred twenty (120) days counted from the date of entry into force of this Law.

The Executive Power through the Secretary of State in the Office of Finance must allocate the necessary budget for the operation and fulfillment of the objectives of the National Institute of Land Transportation (INTT).

For the purpose of obtaining adequate identification, order, and record of the concessions and motor vehicles intended for the provision of transportation services, all concessionaires must, mandatorily and within a period not exceeding ninety (90) days, carry out the marking of their routes, registration numbers, class of service provided, and the name or corporate designation of the Concessionaire; likewise and within the same period, the Institute must conduct a review of the census of Units and the concessions granted in order to determine whether the procedure is in compliance with the legal requirements established at the time of their granting; if otherwise, the Institute must proceed to the immediate cancellation of said concessions through the respective procedure, by means of the General Prosecutor's Office (PGR). Requests for concessions that are pending resolution as of the date of entry into force of this Law must continue to be processed according to the procedure established in the regulations in force at the time of their submission and resolved in accordance with the procedure established in this Law, approving those that result as the difference of knowing supply and demand for each route through the pertinent technical studies. In the case of mototaxis, no more than two (2) Units per family nucleus may be granted, since this is a new transportation modality; the Institute must conduct the pertinent studies to determine the quantity of Units that can legally circulate in each area or operation zone in which they currently operate. Said study shall serve as the basis for the legalization process of Units in sufficient numbers to satisfy the required transportation demand.

A maximum period of one hundred twenty (120) days is granted, counted from the date on which the respective Regulation is issued, for all Drivers of public land transportation, without exception, to commence the certification process and granting of the corresponding licenses to be authorized to operate any of the Units of public land transportation; the driving licenses becoming of no value or effect from the day of expiration of the established period.

For one time only and due to the Advisory Council of Land Transportation (CATT) not being integrated, the appointment of the Transport Commissioners shall be made through direct selection by the President of the Republic.

To repeal in all respects that are contrary to the provisions of this Law Executive Decree Number 319, containing the Law of Land Transportation; Executive Agreement Number 200, containing the Regulation of the Law of Land Transportation, the Regulation of issuance of Certificates and Permits, the Regulation of mototaxis; as well as any other legal norm related to the regulations on the subject of the provision of land transportation service that as of this date is in force and that contradicts the provisions of this Law; likewise as to the issuance of Licenses for Transportation Drivers, with the pertinent legal or contractual instruments remaining in force during the period of validity established in them, unless extended, after which it becomes an exclusive function of the Institute in accordance with the norm established in this Law. As long as the Institute has not fixed the minimum rates for cargo transportation, the provisions established in Executive Decrees No. 01417 and 0466 whose values established therein must serve as the basis for the fixing that the Institute will carry out at the appropriate time.

To order the Secretary of State in the Office of Finance to identify the necessary resources within the General Budget of Income and Expenditures of the Republic, to pay the benefits and indemnifications to which the employees of the General Directorate of Transportation are entitled, who as a result of the restructuring to be carried out should cease in their positions. The employees who are working in the General Directorate of Transportation must be submitted to a process of evaluation, supervision, or certification, to determine who are apt to be incorporated into the Institute.

What is not provided for by this Law and its regulations must be resolved by what is applicable in the Commercial Code, other laws in force, general principles of law, and by the customs and practices on the matter. In case of conflict in the interpretation of this Law, what is most convenient in favor of the Users of transportation must be applied.

In places where public land transportation services are provided without the corresponding authorization, the Institute must proceed within a maximum period of three (3) months to initiate technical and socioeconomic studies on each route, in order to determine whether or not the granting of the respective Concession is warranted, carrying out in its case an equitable distribution of the same.

The modality of public land transportation Rapid Transit Buses (BTR) is governed by the Institute and regulated by this Law without prejudice to the Decree of its creation and its respective agreements.

The acquisition of related services, consisting of prepaid cards and the use of technological instruments, must be contracted through International Public Bidding procedures that comply with all mechanisms of transparency in the management of the acquisition of these Services.

In order to achieve adequate coverage of social protection for the Drivers of public land Transportation, as well as their dependents, one percent (1%) of the total collected through the prepaid system must be allocated, which must be directed to the Fund of the Plan for Solidary Promotion and Reciprocal Assistance (PLAN PRO-SOLIDAR). These funds, together with the solidary contribution of the State, must serve to pay the correct affiliation of the aforementioned workers to the social protection system in accordance with what is established in the respective Regulation.

The Honduran Institute of Land Transportation (IHTT) and the Institute of Property (IP) must articulate a system that allows the homologation of the Concession number with the license plate number that each transportation Unit bears, prioritizing in its implementation the modalities of: urban bus, taxi, and mototaxi. Said system must enter into operation within the timeframe and in the manner that is established by regulation.

The Institute may guarantee the graduality of all those procedures or systems that due to their complexity require a reasonable time for their implementation.

This Law shall enter into force as of the day of its publication in the Official Newspaper "La Gaceta". Given in the city of Tegucigalpa, Municipality of the Central District, in the Session Chamber of the National Congress, on the Seventeenth day of the month of December of Two Thousand Fifteen. ANTONIO CÉSAR RIVERA CALLEJAS PRESIDENT MARIO ALONSO PÉREZ LÓPEZ SECRETARY JOSÉ TOMÁS ZAMBRANO MOLINA SECRETARY To the Executive Power Therefore: Execute it. TEGUCIGALPA, M.D.C., 28 March 2016. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE IN THE OFFICE OF INFRASTRUCTURE AND PUBLIC SERVICES. ROBERTO ANTONIO ORDOÑEZ