Law on Land Transportation of Honduras

This Law is of public order and has as its purpose to establish the administrative and functional structure of the competent bodies for its application, as well as to regulate the form, conditions and requirements to which the provision of public and special land transportation service 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 representativeness established under the principle of equity with respect to the investment made by the service providers in consonance with the international treaties on the matter ratified by the State of Honduras, of which it is a signatory. Users must be guaranteed representativeness in decision-making.

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

• 1)

  VEHICLE AGE: Maximum period allowed for a transportation unit to be used in the provision of the service.

• 2)

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

• 3)

  OVERSIZED CARGO: That which exceeds the measurements of legally authorized technical specifications.

• 4)

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

• 5)

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

• 6)

  OPERATING CERTIFICATE: The document necessary to legally operate an automotive vehicle or one without its own power, intended for public or special transportation service.

• 7)

  VEHICLE CERTIFICATE: Proof that a vehicle intended for the provision of the service has successfully passed, by a qualified body, the verification process regarding its operating condition, safety mechanisms, comfort and others that the Institute deems necessary to establish.

• 8)

  PILOT CERTIFICATE: Proof that a natural person who works or intends to work in a vehicle intended for the provision of the service has successfully passed, by a qualified body, the verification process regarding their capacity, fitness and other qualities necessary that the Institute deems 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 Operating Permit and Operating Certificate to commercially exploit the transportation service under the conditions and requirements set forth in this Law.

• 11)

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

• 12)

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

• 13)

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

• 14)

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

• 15)

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

• 16)

  STATION OR STOP: The site designated, within a route, for the temporary halt 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 expansion of an already granted concession that does not exceed twenty (20) additional kilometers.

• 19)

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

• 20)

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

• 21)

  ITINERARY: The places and stops between which the 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 helper or helpers and other operators similar to the Pilots.

• 25)

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

• 26)

  OPERATING PERMIT: The administrative act of the Institute, by means of 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 passenger transportation vehicles.

• 28)

  INTERNATIONAL SERVICE FOR PERSONS AND CARGO: The transportation service that Concessionaires perform 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 the payment of a determined tariff or price.

• 31)

  SPECIAL TRANSPORTATION SERVICE (STE): That which is provided for students, workers, social and religious groups, private cargo transportation and other similar services, through the 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 paid transportation of persons and cargo, authorized by the Institute.

• 34)

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

• 35)

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

• 36)

  TOURISM TRANSPORTATION: That service which is contracted to satisfy in a general manner the needs of persons who make movements related to recreational, sports, cultural or leisure activities.

• 37)

  USER: The natural or legal person who contracts or regularly uses the public transportation service through the payment of a determined tariff or price, as applicable.

• 38)

  UNIT: The vehicle intended for the provision of public or special transportation service.

The HONDURAN LAND TRANSPORTATION INSTITUTE (IHTT) is created as a deconcentrated entity of the State Secretary's Office in the Departments of Infrastructure and Public Services (INSEP), with its own budget, whose competence extends to the entire 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 made up of regional, departmental and local delegates, as applicable; who have the attributions that expressly stipulate the Regulation of the Law or of the Institute.

To ensure the effectiveness 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 use of available resources and their maximum efficiency;

• 3)

  Coordinate its actions under the principles of unity of criterion, 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 by the land transportation concessionaires of persons, for which it may enact the necessary precautionary measures to guarantee the continuity and efficiency of public service, including among them: the temporary or permanent replacement of the service concessionaire, especially when the life and safety of Users is put at risk; and,

• 7)

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

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

• 1)

  The Directive Commission for Land Transportation (CDTT);

• 2)

  The Advisory Council for Land Transportation (CATT);

• 3)

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

• 4)

  The National School of Land Transportation (ENTT).

The provisions of the preceding Article should not be understood as a limitation to the creation, function or future modification of other bodies of public administration, when it is deemed necessary for the better functioning of the Institute.

The Honduran Land Transportation Institute (IHTT) is directed by the Directive Commission which is composed of three (3) commissioners and one General Secretary. The commissioners serve in their office 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 three (3) aforementioned commissioners must have specialized knowledge or experience in any of the following fields:

• 1)

  Commissioner specialist in the field;

• 2)

  Commissioner specialist in administration; and,

• 3)

  Commissioner specialist in finance. The presidency must be rotative each year 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 for 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 their civil rights and be of recognized honorability;

• 5)

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

• 6)

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

• 7)

  Not have pending accounts with the State.

The Presidency of the Commission must fall to the Commissioner whom the President of the Republic designates for such purpose, rotating them annually. Its attributions are the following:

• 1)

  Exercise the legal representation of the Institute;

• 2)

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

• 3)

  Appoint and remove from office 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 for Land Transportation (CDTT) are the following:

• 1)

  Comply with and enforce this Law and its regulations, as well as the 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 appropriate, Operating Permits and Operating Certificates as well as special permits; authorize driving licenses and certifications to Pilots of Land Transportation, prior to compliance with legal requirements;

• 4)

  Authorize the acquisition, sale and encumbrance of the goods and services required by the Institute, likewise any other act or contract regarding said goods and services that seeks the purposes of the Institution and the effective application of the Law, executing the necessary contracts for such purpose;

• 5)

  Approve, modify and regulate the tariffs of public transportation;

• 6)

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

• 7)

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

• 8)

  Establish trusts for the purposes it deems appropriate within the framework of this Law;

• 9)

  Issue the regulations necessary for the effective application of this Law, as well as for the proper functioning of the Institute, without violating the fundamental rights enshrined in the Constitution of the Republic, including free competition and those aimed at promoting 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 proper institutional functioning;

• 11)

  Discuss and approve the Operational Plan and Annual Budget of the Institute no later than thirty (30) business days before the date required for submission of the Budget to the State Secretary's Office in the Department 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 consideration, in time and form for analysis by those responsible for the dependencies of the Institute;

• 14)

  Impose sanctions for infractions determined in this Law, prior to conducting the procedure that is regulations established;

• 15)

  Delegate to other dependencies of the Institute the execution of specific activities, within the framework 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 are assigned to it by the President of the Republic and others that, based on the effective application of this Law, within the current legal and regulatory standards, it would have to implement 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 for Land Transportation (CDTT) must be adopted in a collegial manner by the three (3) commissioners.

The Advisory Council for Land Transportation (CATT) is composed of seventeen (17) Advisors 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 and interurban bus 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 procedure for accreditation of representatives of the sectors before the Institute.

The attributions of the Advisory Council are the following:

• 1)

  Propose the Annual Operational 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 consideration by any dependency or institution involved in public transportation services;

• 4)

  Propose nominations of specialist technicians and professionals, whether they are natural or legal persons, who conduct the socioeconomic, feasibility and demand study for the authorization of tariffs and the granting of new concessions;

• 5)

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

• 6)

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

• 7)

  Propose to the President of the Republic the list of candidates for directive commissioners of land transportation, through 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 his 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 Government representatives, their participation is part of the responsibilities attributed to them derived from their positions.

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

• 1)

  Suitability for the position;

• 2)

  Recognized honorability and moral integrity;

• 3)

  No criminal record; and,

• 4)

  others as defined by the Regulations. In any case, such personnel must undergo confidence evaluation tests, receive training, capacitation and periodic evaluation. In this manner, their performance shall be enhanced based on merit and results, from which shall derive, as applicable, the recognitions or special incentives that by decision of the Directive Commission or as determined by regulation shall be granted as a product of excellent performance; which equally applies to their separation from the Institute. The General Land Transport Inspectorate (IGTT) is headed by a General Transport Inspector and a Sub-Inspector, appointed by the Directive Commission.

The General Land Transport Inspectorate (IGTT) has the following powers:

• 1)

  To comply with and ensure compliance with this Law and its Regulations;

• 2)

  To comply with the provisions and instructions that, within the scope of its powers, the Directive Commission shall issue;

• 3)

  To carry out permanent and alternating patrols, surveillance, control and supervision operations in the country's road network;

• 4)

  To impose sanctions in accordance with what is established in this Law and its regulations;

• 5)

  To maintain a record of sanctions applied, for the purpose of determining the recidivism of offenders;

• 6)

  To receive complaints, investigate them and submit a report to the Directive Commission;

• 7)

  To enforce sanctions imposed for violation of this Law;

• 8)

  To use the implements and resources necessary for the best performance of its functions;

• 9)

  To issue recommendations directed to the Advisory Council for Land Transport (CATT); and,

• 10)

  Such other powers as granted by this Law and its Regulation.

The Section for Receipt and Handling of Complaints dependent on the General Land Transport Inspectorate (IGTT) has the following powers:

• 1)

  To receive complaints filed by Users, concessionaires and Drivers of land transport or others, regarding any fact, act or circumstance considered contrary to the Law and to process them legally, referring them immediately to the General Transport Inspector (IGT) for the corresponding legal effects. Such complaints may be filed without any exclusion by any person, provided they do so responsibly, using any means of communication available to them;

• 2)

  To maintain a Call Center with a free and permanent open line to receive the respective complaints. For this purpose, the telephone number or numbers intended for receipt of complaints must be posted in a visible place inside and outside each unit of public and special transport, with an indication that they are enabled for this purpose. This shall be determined by the Directive 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 merits being sanctioned; and,

• 3)

  To serve as a Mediator to resolve conflicts that arise in the transport sector, provided this does not involve 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 LAND TRANSPORT SCHOOL

The National Land Transport School (ENTT) of the Institute has as its special function the training and capacitation of Drivers of public transport service in all its modalities, as well as drivers of private vehicles. The aforementioned Transport School must maintain a register of Drivers, containing at least their employment history, criminal record, violations committed and other relevant information respectively. The related School must implement public campaigns that promote a better level of quality and socialization for Users of public land transport, so that they know their rights and duties. Private driver schools are regulated through the provisions established by regulation.

The land transport of persons or cargo subject to remuneration by tariff or payment, in any of its modalities, is a public service of the State that is provided either directly through the Executive Power or by Honduran natural or legal persons to whom it has expressly authorized through an operating permit in the form, conditions and requirements that this Law and its regulations provide, which is perfected through a contract between the Institute and the Concessionaires. It is prohibited to offer or actually provide the land transport service without the authorization of the State through the corresponding Concession. Non-compliance with this provision carries for the offender the responsibilities established in this Law and its regulations and those typified in the Penal Code. The use of rental plates is exclusive for the public transport service of persons and cargo.

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

Operating Certificates shall not be granted to Units whose age is, as the case may be:

• 1)

  Buses:

  • a)

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

  • b)

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

• 2)

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

• 3)

  Mototaxi: The age shall 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 shall not be greater than twenty-five (25) years and up to five (5) additional years with repowering; and,

• 5)

  Dump Truck: The age shall 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 herein, intends to continue providing the service, must obtain a certificate issued by technicians of 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 they are intended to provide the service of transport of persons and cargo, to respond for damages to third parties caused in traffic accidents or others for which they must be responsible. In the transport of cargo, mandatory insurance is established, which must be assumed separately, by the account of the owner of the cargo, the tractor unit and the trailer and its accessories of the container and the plant, on an individual basis, as the case may be. The minimum amount and coverage shall be regulated in the respective Regulation of this Law, proof of which the driver of the vehicle must carry when circulating on the public roads of the country. The provisions of this Article shall be applied in a gradual manner 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 possible entry into force of the Law on Traffic Accident Insurance. When a contract is executed between the owner of the truck whether articulated or non-articulated, the primary obligation is that the cargo be insured by its owner.

Land transport vehicles with foreign license plates can only circulate in the territory of the State if, at the moment of their 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 transport matters of which Honduras is a party, in observance of the principle of reciprocity.

The international land transport service of passengers and cargo is regulated by the Institute, in accordance with this Law, its regulations and the respective Conventions 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 being permitted the boarding of passengers or cargo whose point of origin and destination is within the territory of the State. It is understood that only trucks, trailers, cisterns, semi-trailers, chassis and containers bearing plates from countries subscribed to the integration agreements executed, can provide cargo transport service in transit within the territory of the State or from one point within it to another destination within any of said countries or vice versa.

The size and useful space within the Units of interurban transport is determined by the distance to be traveled within the corresponding route, as well as the topographic conditions and urban planning requirements. The Regulation of the Law must establish particular conditions on this matter, focusing on respectful treatment of Users and respecting their special conditions. The Institute must establish the appropriate mechanisms by which the current Units are replaced in a sustained manner on a gradual basis.

The Institute must ensure that the organization and operation of the transport system is adjusted to the Nation Plan in relation to transport policies, in accordance with the following general guidelines:

• 1)

  All applications for concessions for the provision of public transport 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, supported by socioeconomic studies of market feasibility and other technical tools, which must be public for the entire sector. Once the originals are presented, the follow-up can be conducted electronically;

• 2)

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

• 3)

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

• 4)

  To ensure the sustainability of the transport system through the economic-financial equation of tariffs and contracts as the case may be;

• 5)

  Coordination and management with other government institutions so that funds are assigned with priority for the design, construction and maintenance of infrastructure supporting the public transport system;

• 6)

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

• 7)

  The approval of construction plans for urban or inter-urban transport terminals, regarding the minimum requirements for the safety, comfort and operability of Users, must be coordinated with municipal development or land use planning, whether these are constructed by the central government, the municipality or private initiative, this authority being the responsibility of the Institute; and,

• 8)

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

Concessions are in principle non-transferable. However, exceptionally this right may be acquired or transferred totally or partially, with prior authorization from 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, his or her successors or representatives may continue to operate 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 complete the procedures for renewal, otherwise the Concession must be cancelled.

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

In Exploitation Permits and Operating Certificates, the basic conditions for the provision of the Service must be established. At any time, the Institute may modify said conditions when demanded by the public interest.

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

• 1)

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

• 2)

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

• 3)

  Taxis: Which may be from fixed point or Collective, Sweeping, Executive Service and Radio-taxi Service;

• 4)

  Mototaxi;

• 5)

  Motorcycle freight;

• 6)

  Cargo: Specialized and non-Specialized or General;

• 7)

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

The Institute may grant new concessions, provided that demand is not fully met or the Public Land Transportation Service does not exist and the Institute determines this by means of 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 of 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 the principles of transparency, publicity and competition, prior to 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, bidders must pay the amount equivalent to the technical studies authorized by the Institute.

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

When a variation in Service demand so requires, the Institute, on its own initiative 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 legal persons who are owners or lessees of public land freight transportation equipment, articulated or not, Specialized and Non-Specialized Cargo, have the obligation to obtain from the Institute Exploitation Permits and Operating Certificates, for which they must submit the corresponding applications, complying with the requirements demanded in this Law and its Regulations.

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

Specialized Cargo is understood to mean 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-derived products, chemical products, corrosives, insecticides, gases, among others; their transfer must be carried out in trailers with technical specifications and danger warnings. The transportation of petroleum-derived products, 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 specified visibly. For the purposes of this Law, hazardous materials and wastes are: substances, elements, inputs, products and by-products or their mixtures in solid, liquid and gaseous state, which due to their physical, chemical, toxicological, and explosive characteristics, 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 forwarded to the corresponding Fire Department for it to issue the corresponding technical opinion within three (3) days, which shall serve as the basis for granting or denying the permit. The transportation of this type of substance must be subject to special regulations.

Vehicles intended for the transportation of cargo that transfer agricultural equipment and machinery, for construction or that transport Oversized Loads, in compliance with what is contained in the international treaties and agreements that Honduras is part of, must comply with the following provisions:

• 1)

  Possess 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 time of said Permit are recorded;

• 2)

  Bear visible danger signals, such as: flags with fluorescent and electrical colors, reflective tapes and blinking lights that are turned on; and,

• 3)

  Other requirements that are established in the Regulations of this Law.

For a freight transportation vehicle to be able to circulate through the paved road network of the territory of the State, it must have a certificate or manifest of origin, in which the weight of the cargo it transports is specified. The owners or persons 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 type of technology for the control of weights and dimensions of vehicles intended for land transportation in its different modalities. The Regulations must establish the provisions for the implementation and control of this system. Equipment intended for 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 contamination and other technical specifications. The Institute must include in the Regulations the necessary provisions to comply with what is established in this Article.

Cargo transportation service equipment that temporarily enters the country must have a special identification and it must be verified that they leave the country once they conclude with the purpose for which they 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 organized markets and the satisfaction of the demand generated. The Regulations must establish the corresponding nomenclature.

In the Exploitation Permits that serve as a document that accredits the concession for the provision of the 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)

  Tariffs;

• 7)

  Date of Issue;

• 8)

  Date of Preparation or Printing;

• 9)

  Expiration Date;

• 10)

  Signature and seal of the Competent Authority;

• 11)

  Bar code or any other similar code that is deemed convenient and that allows effectively verifying its authenticity;

• 12)

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

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

The Certificate of Operation is the document issued by the Institute that certifies the authorization to operate the Service. Every Driver of a transportation unit must carry in a visible place the original corresponding document, which has a validity of three (3) years, and may be renewed in accordance with this Law and its regulations. The Certificate of Operation that is not utilized within sixty (60) days is permanently canceled. For each motor vehicle and vehicle with or without its own traction, legally authorized, a Certificate of Operation must be issued, which must contain, among others, the following information:

• 1)

  Number of Permit of Exploitation;

• 2)

  Number of Certificate of Operation;

• 3)

  Name, business name or corporate designation of the holder;

• 4)

  Characteristics of the vehicle;

• 5)

  Class of service;

• 6)

  Service modality;

• 7)

  Route, Area of operation;

• 8)

  Schedules and Itineraries;

• 9)

  Fares;

• 10)

  Date of Issuance;

• 11)

  Date of Preparation or Printing;

• 12)

  Expiration Date;

• 13)

  Category of service;

• 14)

  Number of seats or passengers;

• 15)

  Signature and seal of the competent Authority;

• 16)

  Barcode or any other related code that the Authority deems appropriate and that allows effective verification of its authenticity; and, 17) others that are established in the Regulation of the Law.

The prior requirements for the issuance of Certificates of Operation of any class, to which this Law refers, are as follows: For the first time, for increases, changes of Units, and renewals, before beginning operations, Concessionaires must submit for physical-mechanical examination in workshops authorized by the Institute at the national level, the motor vehicle or vehicles intended for the provision of the service, to determine whether they meet the requirements of safety, comfort, hygiene, and others that merit consideration to provide an efficient service. Likewise, the owners of the Units must previously execute the concession contract to operate the respective service, which must contain the requirements that are reglementarily approved, including among them 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.

The Permits of Exploitation and Certificates of Operation are extinguished by the following causes:

• 1)

  Expiration of the validity periods;

• 2)

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

• 3)

  Suspend totally or partially the service without a qualified cause, at the judgment of the Institute;

• 4)

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

• 5)

  Alter the conditions of the service 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 by which administrative acts are extinguished and other duly justified causes that are established reglementarily. The renewal of the Permits of Exploitation and Certificates of Operation must be requested with sufficient advance notice, in order to avoid the 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 to each Unit that is the property of those natural or juridical persons whose business is not the provision of public transportation service, but who have the need to move cargo or persons in function of a principal activity they develop or which, being their principal activity, requires a special permit from the Institute for the mobilization of determined specific groups of persons whose sole point of origin or destination is common, who do not share stations designated for regular public service and by virtue of a contract. The Units that are dedicated exclusively to this type of Service must have markings on a distinctive colored stripe that defines the nature of the Service with the registration number, preceded by the initials of the 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 the 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 Public Transportation Service Concessionaires, regarding safety, quality, and efficiency insofar as applicable.

For the operation of the Special Transportation Service for passengers, only authorized vehicles may be used, which in no case may have a capacity of less than fifteen (15) seated passengers. In the case of Tourism Permits, the Institute may authorize, after prior technical study, Units of lesser capacity or with distinct physical and mechanical characteristics.

Student Transportation is that which is provided exclusively to preschool, primary, secondary, technical, and university students, 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' association, 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.

Workers' 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 must be granted in accordance with this Law and its Regulations. The price for the service provided must be established by means of the respective contract.

The Permits for the 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 juridical persons who use their own motor vehicles to transport their products, harvests, supplies, or cargo, from the locality 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. The return cargo must be limited to supplies and other articles necessary for related activities. The vehicles with a capacity not exceeding three (3) tons, which are exclusively dedicated to agricultural or livestock activities of importance to the national economy or the personnel dependent on such activities, are exempt from the Permit referred to in this Article.

The validity of the Special Transportation Service (STE) Permits is one (1) year. They must be renewed if the conditions of service provision subsist. The cost of renewal is one quarter (1/4) and one (1) minimum wage on the highest scale of the transportation sector per each operating 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 said service, when applicable.

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

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

• 1)

  Each Unit must have a fire extinguisher;

• 2)

  First aid kit with minimum supplies determined by the Institute;

• 3)

  Communication system;

• 4)

  Safety belts for each seat;

• 5)

  Containers for collecting garbage;

• 6)

  Special seats for persons with disabilities, pregnant women, and older adults;

• 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 adult who is accredited and certified by the educational center as an assistant to the driver, who assists students with their needs, ensuring that they travel under the standards established in the Regulation and ensuring their safety within the Unit, as well as outside of it, in the moments immediately preceding their boarding or disembarking.

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

When extraordinary demand for passenger transportation services arises due to festivals, 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 ISSUANCE RIGHTS

For the Issuance of Exploitation Permits, Operating Certificates corresponding to the concession, special transport 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 Regulations must establish the classification for the application of payments by category of transport service; in the case of the mototaxi service it must be half (1/2) minimum salary;

• 2)

  Unit increases and transfer of rights, which involve the Issuance of the Operating Certificate in the public transport service, the equivalent of one (1) minimum salary; in the case of mototaxi it must be half (1/2) minimum salary;

• 3)

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

• 4)

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

• 5)

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

• 6)

  Modifications for changes in schedules, itineraries, changes in Unit 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 between half (1/2) to two (2) minimum salaries; and,

• 9)

  Special permits to cover extraordinary demand, the value must be established by the Directive Commission in the Regulations.

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

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

The establishment of maximum tariffs for Public Transportation, in its passenger modalities, is the exclusive responsibility of the Institute, which for this purpose must conduct the technical studies, valuation and establishment corresponding, 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, mandatory vehicle insurance, cost per tolls, tax burdens and fees, among others, as well as in consideration of a reasonable profit and in accordance with the reality of the country, which the concessionaire should receive as compensation for the investment made. The Regulations must establish the particulars regarding the authorization and review of tariffs. The minimum tariff in Cargo Transportation must be established by the Institute, without prejudice to the fact that transport entrepreneurs of this modality may negotiate with Service Users values higher than the minimum tariff established by the Institute, taking into account the weight of the useful cargo, the distance to travel, road conditions and other relevant factors.

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

Tariffs must cover the totality of actual costs, under normal conditions of productivity and efficiency. They must allow adequate amortization and reasonable business profit, at the discretion of the Institute. The indicators to determine actual costs and profitability must be updated and published semiannually by the Institute. No subsidies to tariffs or vouchers must be granted, except those that may be established in the future by the Executive Branch in favor of special population groups to the extent that economic conditions allow.

The collection of tariffs in the modalities of urban buses and taxis must be made through the prepaid card system, for which an efficient mechanism must be established in the Regulations. 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 considered necessary to implement it.

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 locations. They have the right to travel free of charge in Units of urban Public Transportation:

• 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 Transportation Inspectorate (IGT), under the same conditions as the preceding item;

• 4)

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

• 5)

  Persons who notoriously have a disability or present special challenges. CHAPTER VII OBLIGATIONS

Users of public and special land transportation, of persons and cargo, as applicable, are obligated 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 trash from the 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 the spaces provided for the transportation of persons with disabilities, pregnant women and elderly adults;

• 10)

  Not speak with Drivers while they drive; and,

• 11)

  Others that are established by regulation.

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

• 1)

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

• 2)

  Replace vehicles that are temporarily withdrawn from service for properly demonstrated mechanical reasons, traffic accidents, 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. This does not have a permanent character nor is it recognized as a fleet increase or tariff-wise. This temporary substitution cannot exceed one (1) month, after which, unless at the request of the Concessionaire and under strict criteria of the Institute, this period may be extended;

• 3)

  Replace only those Units that are withdrawn from Service permanently, in accordance with the guidelines established by the Institute and in the following cases: i) Those that are declared a total loss or that have properly demonstrated mechanical problems that pose a danger to the safety or integrity of Users; ii) Those that do not comply by their characteristics with a Public Service in accordance with the principles of accessibility and safety for the user; 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 compliance with what is established in Article 23 of the same;

• 4)

  In those services where it is necessary to request the reinforcement of fleet with reserve Units due to extraordinary demand, the Concessionaire is obligated to request it 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 necessary documentation 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 cases of force majeure or fortuitous event in the judgment of the Institute;

• 7)

  Keep insurance policies up to date;

• 8)

  Pay the Institute for the issuance rights of Exploitation Permits, Operating Certificates and other corresponding obligations for each Unit authorized to provide the service;

• 9)

  Comply with the service quality evaluation system;

• 10)

  Allow entry of the Institute's Inspectors and Technicians or those designated by it for the conduct of all 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 jointly with the Institute to those hired to drive 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)

  Because of User safety and public interest, Drivers of the Public passenger Service must be certified through psychometric examinations and toxicological tests of their suitability to hold office, 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 cleanliness of the Units and service facilities;

• 15)

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

• 16)

  Transport User baggage, when the physical conditions of the Unit permit it and this does not require additional space within the Unit;

• 17)

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

• 18)

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

• 19)

  For proper identification, place in visible locations inside or outside transportation Units, the name and/or logos of their respective company, provided that this does not mean that it should be considered as advertising of their name;

• 20)

  Assist and send Drivers to the training that the Institute orders;

• 21)

  Establish for the benefit of Users, under the conditions the Institute determines, all those services and facilities that, without being indispensable for transportation, are connected with it;

• 22)

  Respect Drivers' labor rights guaranteed by current laws 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 Land Transportation are, as applicable:

• 1)

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

• 2)

  Obtain and carry while operating the transportation Unit their license;

• 3)

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

• 4)

  Show at all times due respect and appropriate treatment to Service Users and the general public;

• 5)

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

• 6)

  Carry their identification in a visible location; and,

• 7)

  Verify the declaration and labeling of passenger baggage. CHAPTER VIII CONNECTED SERVICES

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 include: cargo, advertising provided it does not interfere with safety measures and parcels, 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 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 with special challenges. The Regulations must establish the conditions in which Connected Services must operate. CHAPTER IX VEHICLE FLEET RENEWAL

The Institute, for the purpose of making efficient and improving the quality of transportation services, must establish a Vehicle Fleet Renewal Plan of the vehicle fleet, which is called "MOTOR VEHICLE RENEWAL PROGRAM (PRORENOVA)", which must be done in a gradual and sustained manner 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 that will be defined in the Regulations, 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 Concessionaires of the public transportation service, so that they may manage the direct importation of vehicles assigned to said service, basic basket of spare parts and supplies necessary for the maintenance and operation thereof, under conditions in accordance with national reality, respecting the Treaties or Agreements in force on matters of free trade. Furthermore, it must seek to obtain, with public or private institutions of the National Financial System, the opening of a soft credit line, with interest rates and terms in accordance with the income generation of the Concessionaires.

The Permits of Exploitation and Certificates of Operation 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, it is a requirement to obtain prior written Authorization from The Institute.

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

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

The following are Very Serious Infractions:

• 1)

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

• 2)

  To provide the Service with false or altered documents;

• 3)

  To permit, lease or dispose in any manner of the use of the concession granted by the Institute, except in duly qualified cases at its discretion, in which case it may authorize it;

• 4)

  To offer gifts to the officials or employees of the Institute to obtain a lawful or unlawful benefit;

• 5)

  To permit the Concessionaire that the Operators of the transportation Units under his charge work under the effects of alcoholic beverages or another psychotropic substance or narcotic;

• 6)

  To drive the Operator, any Unit, under the effects of alcoholic beverages or other psychotropic substances or narcotics;

• 7)

  To drive the Units exceeding the speed limits established;

• 8)

  To disobey the provisions issued by the Institute, without prejudice to incurring in the corresponding criminal responsibility;

• 9)

  To fail to comply with the particular conditions established in the Permits of Exploitation and Certificates of Operation;

• 10)

  To transport passengers or cargo in a number or weight that exceeds the legal limit established or to alter the weight stated in the manifest of origin;

• 11)

  For international transportation: to travel through the road network of the country without carrying the respective insurance against accidents and damages for which it must be responsible;

• 12)

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

• 13)

  The others related thereto that are applicable, contained in Article 98 of the current Traffic Law; and,

• 14)

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

The following are Serious Infractions:

• 1)

  To offer and provide the Public land transportation service when the Concession or license, as the case may be, has expired, unless the interested party demonstrates having requested it timely and in proper form;

• 2)

  To use the Units for purposes other than those established in the permit of exploitation and certificate of operation;

• 3)

  To fail to comply with the applicable obligations contained in articles 71, 72 and 73 of this Law;

• 4)

  To offend, threaten or in any way show disrespect toward the authority of the Institute, as well as to offer payment or reward to permit the omission of any obligation imposed by this Law;

• 5)

  To fail to carry within the Unit the corresponding Certificate of Operation;

• 6)

  To drive the Units without the respective license granted by the Institute;

• 7)

  The recurrence in a Serious Infraction becomes a Very Serious Infraction; and,

• 8)

  The related ones that are applicable from Article 99 of the current Traffic Law:

The following are Minor Infractions:

• 1)

  To express oneself with vulgar or immoral vocabulary within and outside of the transportation Units;

• 2)

  To treat in a crude, offensive manner or in any way that harms the dignity and honor of the Users;

• 3)

  In general to incur in conduct that constitutes an obstacle to the application of this Law;

• 4)

  Non-compliance with the general conditions contained in the Permits of Exploitation and Certificate of Operation;

• 5)

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

• 6)

  The recurrence in a minor infraction becomes a Serious Infraction; and,

• 7)

  The others related thereto that are applicable, contained in Article 100 of the current Traffic Law; By the regulatory means the Board of Directors, with the opinion of the Advisory Council, may determine and classify the definition of other conduct, actions or omissions that in observance of this Law could be constitutive of infraction. CHAPTER XI SANCTIONS

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

• 1)

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

• 2)

  For the second time with a fine equivalent to one-half (1/2) of minimum salary and the seizure of the transportation Unit so long as the payment is not made effective, as well as the suspension of the Driver's License and the Certificate of Operation, furthermore the violator must submit to a training process in accordance with 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 file the corresponding criminal action, as well as the consequent definitive cancellation of the driver's license or the Certificate of Operation.

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-quarter (1/4) of minimum salary; and,

• 3)

  For the third and final time this becomes a very serious infraction, in this case, the mechanism of graduality 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-quarter (1/4) of minimum salary; and,

• 3)

  In case of recurrence it will become a serious infraction, in this case, the mechanism of graduality established in the preceding Article must be applied.

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

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

The National System of Security of Public Land Transportation is created, which must be directed by the National Council of Defense and Security. The 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 system of cameras in real time within the Units and distributed at different points of the route, system of monitoring and tracking of transportation Units, mechanisms of panic buttons or alert to the authorities to achieve immediate response against criminal activities or contingencies that may put at risk the security or physical integrity of the Users, Concessionaires or Operators of land transportation. No transportation Unit for persons shall be issued a certificate of operation without previously verifying that it has the security devices referred to in this Article.

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

The Public Ministry must appoint Special Prosecutors with national territorial authority, to attend exclusively and with priority to the complaints that are presented to it regarding the crimes committed against the Users of land transportation, Concessionaires and Operators.

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

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

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

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

The Executive Power, through the State Department in the Office of Finance, must allocate the necessary budget for the operation and compliance with the objectives of the National Institute of Land Transport (INTT).

For the purpose of obtaining proper identification, order, and registration of concessions and motor vehicles intended for the provision of transport services, all concessionaires must, mandatorily and within a period not exceeding ninety (90) days, carry out the labeling of their routes, registration numbers, class of service provided, and the trade name or corporate name of the Concessionaire; likewise and within the same period, the Institute must conduct a review of the census of Units and concessions granted in order to determine whether the procedure complies with the legal requirements established at the time of their granting; otherwise, the Institute must proceed to the immediate cancellation of said concessions through the respective procedure, by means of the Office of the Attorney General of the Republic (PGR). Concession requests that are pending resolution at the date of entry into force of this Law must continue to be processed in accordance with 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 the supply and demand for each route through the relevant technical studies. In the case of mototaxis, no more than two (2) Units may be granted per family nucleus, since this is a new transport modality; the Institute must conduct the relevant studies to determine the quantity of Units that may legally operate in each area or zone of operation where they currently operate. Said study shall serve as the basis for the legalization process of the Units that in sufficient numbers satisfy the required transport 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 transport, without exception, to proceed to initiate the certification process and granting of the corresponding licenses to be authorized to operate any of the Units of public land transport; the driving licenses remaining without any value or effect from the day of expiration of the established period.

For one time only and since the Advisory Council for Land Transport (CATT) is not integrated, the appointment of the Transport Commissioners shall be made by direct selection of the President of the Republic.

Repeal in all respects that oppose the provisions of this Law Executive Decree Number 319, containing the Law of Land Transport; Executive Agreement Number 200, containing the Regulation of the Law of Land Transport, the Regulation for the issuance of Certificates and Permits, the Regulation of mototaxis; as well as any other legal norm related to the regulations on the provision of land transport service that is currently in force and that contradicts the provisions of this Law; likewise, what relates to the issuance of Licenses for Transport Drivers, with the pertinent legal or contractual instruments remaining in effect during the period of their validity, unless extended, upon whose expiration, it becomes the exclusive function of the Institute in accordance with the norm established in this Law. As long as the Institute has not set the minimum rates for cargo transport, the provisions of Executive Decrees No. 01417 and 0466 must be applied, whose values established therein shall serve as the basis for the rates that the Institute will establish at the appropriate time.

Order the State Department in the Office of Finance to identify the necessary resources within the General Budget of Income and Expenses of the Republic to pay the benefits and indemnities to which employees of the General Directorate of Transport are entitled, who as a result of the restructuring that takes place should cease in their positions. Employees who are working in the General Directorate of Transport must be subjected to a process of evaluation, supervision, or certification to determine who is fit to join 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 uses and customs on the matter. In case of conflict in the interpretation of this Law, what is most convenient in favor of Transport Users must be applied.

In places where public land transport 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 respective Concession should be granted, making, where applicable, an equitable distribution thereof.

The modality of public land transport 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.

To achieve adequate coverage of social protection for Drivers of public land transport, as well as their dependents, one percent (1%) of the total amount collected through the prepaid system must be allocated, which must be directed to the Fund of the Plan for Solidarity Promotion and Reciprocal Aid (PLAN PRO-SOLIDAR). These funds, together with the solidarity contribution of the State, must serve to pay the proper 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 standardization of the Concession number with the license plate number that each transportation unit bears, giving priority in its implementation to 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 gradualness of all those procedures or systems that by 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 Gazette "La Gaceta". Given in the city of Tegucigalpa, Municipality of the Central District, in the Hall of Sessions 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: Let it be executed. 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