General Regulations of the Land Transportation Law of Honduras

This Regulation has the purpose of regulating the provisions contained in the Law of Land Transport of Honduras, hereinafter referred to as "The Law", with respect to the provision of public and special services of land transport of persons, cargo and merchandise and the provisions that regulate private vehicles.

For a better understanding of this Regulation, the words enumerated below, whether written in singular or plural, shall have the following meaning: CALENDAR DAYS: All days including Saturday, Sunday and holidays. BUSINESS DAYS OR WORKING DAYS: All days excluding Saturdays, Sundays and public holidays. TRUSTS: For the purposes of this Regulation, it refers to the fund established to sustain the economic autonomy of the Honduran Institute of Land Transport. QUALITY INDICATORS: It refers to the specific quality criteria and the levels of service that concessionaires must comply with according to what is defined in their respective Concession Contracts. SPECIAL PERMIT: Administrative act of the Honduran Institute of Land Transport by means of which the provision of special transport services is authorized. INTEGRATED PUBLIC TRANSPORT SYSTEM: It is the system that comprises the actions for the articulation, linkage and integrated physical, technological and tariff operation of the different modes of public transport; as well as the requirements for infrastructure, accessibility, circulation and collection of the system. Said system shall be governed by the institutions and bodies established by law for the functioning of the public transport system. LAND TRANSPORT: Without prejudice to what is established in the Law, land transport is called the action of providing integral and related services, including terminals and their auxiliary services, for the transfer of persons, things, substances and others, making use of installations and the road network. MINIMUM ACCEPTANCE VALUE: In the context of quality indicators, it refers to the minimum measurable values with which it is evaluated whether the concessionaire is providing the concessioned services with the quality expected by the Institute and users. TITLE II: AUTHORITIES IN TRANSPORT MATTERS CHAPTER I: HONDURAN INSTITUTE OF LAND TRANSPORT (IHTT)

The general structure of the Institute is composed of the following bodies: 1. The Directive Commission of Land Transport (CDT). 2. The Advisory Council of Land Transport (CATT). 3. The General Inspectorate of Land Transport (IGTT). 4. The National School of Land Transport (ENTT). The administrative and technical organization of the Institute and its dependencies are in charge of the Directive Commission of Land Transport (CDT).

The Directive Commission of Land Transport (CDT) is the highest ranking body within the Institute, which shall have the attributions assigned in the Law and this Regulation, which is composed of three (3) Commissioners and a General Secretariat, under the procedure established in this Regulation. The Commissioners must have specialized knowledge or experience, one in land transport, another in administration and one specialist in finance. The Directive Commission of Land Transport (CDT) must meet in Commission session once a week, without prejudice to extraordinary sessions that may be convened. Without prejudice to the powers contained in the Law, the Commission shall have the authority to create the rates and fees to be charged for procedures, services, authorizations, permits and licenses that it issues.

The Commissioners shall be appointed by the Constitutional President of the Republic from a list of six (6) candidates proposed by the Advisory Council of Land Transport (CATT) under the following selection mechanism:

• a)

  The proposed candidates must meet all the requirements to be members of the Directive Commission, as established in Article 9 of the Law;

• b)

  The requirement indicated in Article 9.3 of the Law shall be applicable according to the specialty that each Commissioner must demonstrate;

• c)

  The Advisory Council shall publish in two (2) newspapers of greatest circulation in the country the invitation to present expressions of interest for the position of Commissioner, requiring a minimum of five (5) applicants in each of the specialties, in which shall be indicated the necessary requirements to apply for said position, the receipt of documents shall be carried out in the offices of the Advisory Council and shall have a reception period of ten (10) business days counted from the date of publication;

• d)

  Once the documentation is received, the Advisory Council must verify its authenticity, conduct interviews and evaluate the corresponding knowledge within a period not to exceed fifteen (15) business days;

• e)

  Once the six (6) candidates are selected, the proposed list shall be sent to the Constitutional President of the Republic within a period not to exceed five (5) business days;

• f)

  In case the minimum participation of applicants is not achieved or there are no applicants who meet the requirements established in the Law to complete the list of six (6) candidates established in Article 8 of the Law, the established procedure shall be carried out one additional time only, and if the same result is obtained, the Commissioners shall be elected directly by the President of the Republic in accordance with the requirements established in Article 9 of the Law.

The General Secretary is selected from a list of three candidates proposed through a selection process. The General Secretary must be a lawyer and comply with the same requirements established for the Commissioners, insofar as it corresponds to their position. The General Secretary has the right to speak, but not to vote, and the decisions of the Commission must be adopted in a collegial manner by the three (3) Commissioners.

The General Secretary of the Commission has the following special powers and attributions:

• 1)

  Act as Secretary of the Commission;

• 2)

  Receive requests and petitions presented before the Institute and maintain the corresponding record of files;

• 3)

  Sign all orders and transitory rulings;

• 4)

  Countersign the signature of the Commissioner who holds the representation of the Institute in the resolutions that are issued;

• 5)

  Make notifications to the interested parties, according to the orders, rulings and resolutions issued by the Institute;

• 6)

  Present periodic reports to the Commission regarding the management under its charge;

• 7)

  Keep the minutes and agreements, prepare the agenda and conduct communication acts for Commission sessions,

• 8)

  as well as on other matters within the competence of the Institute;

• 9)

  Issue the certifications that interested parties request for the purposes they deem appropriate; and,

• 10)

  Exercise the other functions assigned to it by the Directive Commission and which correspond to the nature of its position.

Regional Departmental and Local Delegates are appointed by the Directive Commission of Land Transport (CDT). The Directive Commission of Land Transport (CDT) may create the delegations it considers necessary according to the needs of the sector in a given geographic area, provided that the requirement has been previously incorporated in the Annual Operating Plan and in the Budget of the Institution.

Regional, Departmental and Local Delegates have the attributions and powers delegated to them by the Directive Commission of Land Transport (CDT), and may act as extensions of the General Secretariat for the purposes of processing and resolution of matters under their charge.

To be members of the Advisory Council of Land Transport (CATT) the following requirements must be met:

• 1)

  Be Honduran by birth;

• 2)

  Possess a university degree;

• 3)

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

• 4)

  Not be spouse nor relatives within the fourth degree of consanguinity and second of affinity among the Advisors;

• 5)

  Not have pending accounts with the State; and 6) Not have criminal background.

The Advisory Council is composed of seventeen (17) Advisors, who are appointed in the following manner:

• 1)

  The principal and alternate representatives of the Government shall be appointed by Agreement issued by the President of the Republic, through the Secretariat of State in the Departments of Infrastructure and Public Services (INSEP);

• 2)

  The representatives of the legally recognized transport sector organizations shall be appointed by the transport sector itself in accordance with the statutory procedure that governs it, and must also comply with the requirements established in Article 9 above. A maximum of one representative shall be used for each of the following sectors: taxis, mototaxis, urban bus service, intercity service, general cargo transport and specialized cargo transport;

• 3)

  The representatives of users appointed by legally constituted organizations and transport sector organizations, a public invitation shall be issued in two (2) newspapers of greatest national circulation, which must contain the requirements established in this Regulation and the documentation that certifies the legality of the constitution of each organization as well as its operation, in the same manner the authentic documentation that certifies the representation of the proposed candidates;

• 4)

  The deadline for the presentation of the required documentation for the accreditation of all representatives may not exceed fifteen (15) business days counted from the publications referred to in the preceding numeral.

They shall be elected by the sixteen members that compose the Advisory Council from among the nine representatives of the public sector. The members of the Council shall serve for four years in the performance of their functions and in compliance with their legal and regulatory attributions. The Advisory Council may be assisted by the specialized technical team that allows it to monitor and comply with its tasks. This technical team shall be composed of a group not exceeding five (5) specialists in the areas of projects and their monitoring.

The publication of the notice of convocation shall be made in two (2) newspapers of greatest national circulation forty-eight (48) hours before the date set for the meeting. The meeting in first and second call shall be announced simultaneously. Meetings may be held in any place within the national territory, always leaving reliable evidence of the attendance of those who participated in them. When it comes to plenary sessions, they may meet without prior convocation, in any place of the Republic of Honduras. The session shall be presided by the President of the Advisory Council or the one substituting for him and the Secretary of the Council shall act as Secretary and in the absence of them, those designated by the members of the Council present. For the Council to be considered legally constituted in ordinary and extraordinary sessions, at least fifty percent (50%) of the members with the right to vote must be represented and resolutions shall only be valid when taken by the majority of votes present. If the ordinary or extraordinary meeting is held by second call, the Council shall be validly constituted regardless of the number of members represented. Decisions must be made by the favorable vote of a number of members representing at least fifty percent (50%) of the members with the right to vote. The disintegration of the quorum of presence shall not prevent the session from continuing and being able to adopt agreements if voted by the majority present. The minutes of the sessions shall be recorded in the respective book which must be signed by the President and Secretary of the Council. When for any reason the minutes cannot be recorded in the respective book, they shall be protocolized before a Notary.

Its objective is to assist in the execution of the attributions of the Commission, as well as to supervise and monitor the provision of the land transport service in its different modalities, in accordance with the Law, respective Regulations and other directives that the Directive Commission expressly determines for it. The General Inspectorate shall be headed by a General Inspector of Transport and a Sub-Inspector and other auxiliaries of the sections that make up the General Inspectorate, which are deemed necessary for its proper functioning, who are appointed by the Directive Commission.

In addition to the requirements established in Article 16 of the Law, the General Inspector of Transport and the Sub-Inspector of this General Inspectorate must meet the following requirements:

• 1)

  Possess a university professional degree;

• 2)

  Not be spouse nor relative within the fourth degree of consanguinity and second of affinity of the members of the other authorities in transport matters; and,

• 3)

  Not have been or be a direct or indirect concessionaire of the transport service, nor be in any circumstance that could cause conflict of interest.

FUNCTIONS OF THE GENERAL INSPECTORATE OF LAND TRANSPORTATION (IGTT): The General Inspectorate has the following functions:

• 1)

  To receive, process, and resolve complaints, reports, and communications from public or private institutions, as well as from individuals, concerning the operation of public land transportation services;

• 2)

  To request information and documentation from land transportation concessionaires of passengers and cargo, related to the provision of transportation services;

• 3)

  To provide operational support in the different processes required by the various directions and units of the Institute;

• 4)

  To conduct inspections of school transportation and transport of minors;

• 5)

  To conduct inspections of maximum authorized weights and dimensions of cargo;

• 6)

  To design the respective planning, which prior to execution must be submitted for the knowledge and approval of the Directive Commission, and must particularly consider in said planning the supervision of those routes in which the provision of the service requires multiple concessionaires;

• 7)

  To receive reports on the performance of the fleet control system or physical inspections for the application of the different penalties established in the Law and its regulations; and,

• 8)

  To ensure compliance with what is applicable in the Law and its respective regulations.

SPECIFIC FUNCTIONS OF THE GENERAL INSPECTOR OF TRANSPORTATION AND SUB-INSPECTOR: The General Inspector of Transportation or, in his absence, the Sub-Inspector, has as principal function the direction and coordination of all sections of the General Inspectorate, and must comply with the dispositions and instructions that the Directive Commission may issue to that effect. The Sub-Inspector maintains the hierarchy after the General Inspector of Transportation, whom he represents or substitutes in the absence of the latter. The Sub-Inspector must support the activities of coordination and management of functions and activities corresponding thereto.

ORGANIZATION OF THE GENERAL INSPECTORATE OF LAND TRANSPORTATION: The General Inspectorate must have in its internal structure at minimum the following sections:

• 1)

  Supervision Section: It is in charge of conducting patrols, surveillance operations, control, and supervision on the road network of the country, as well as all those functions related to verification and supervision that correspond to it;

• 2)

  Section for Reception and Treatment of Reports: It has the attributions referenced in Article 18 of the Law, as well as maintaining a registry of complaints and reports received with the necessary data for their identification and recording;

• 3)

  Investigation Section: It is in charge of conducting investigations on the reports received and issuing the respective reports in order to be subsequently forwarded to the Directive Commission;

• 4)

  Sanctions Section: It is in charge of imposing and enforcing the sanctions that correspond according to the instructions issued by the Directive Commission, based on the reports it receives of sanctions imposed, as well as those that correspond to it according to the categorization of sanctions. This section must have a Registry of applied sanctions, in order to determine the recidivism of offenders; and, 5. Other Sections: The Directive Commission may create in the internal structure of the General Inspectorate such other sections as it deems convenient according to the needs for the fulfillment of its functions.

PATROLS, SURVEILLANCE OPERATIONS, CONTROL AND SUPERVISION ON THE ROAD NETWORK: To conduct these activities, the Supervision Section of the General Inspectorate must establish, by itself or through its Regional, Departmental, and Local Delegates, a quarterly program for the coordination of control and supervision mechanisms. At the control posts established by the General Directorate of Traffic, the General Inspectorate may also conduct its activities, each one within the scope of its competence. When these do not exist, the General Inspectorate must establish booths or control posts, fixed or mobile, at the entrance of the principal cities and at the junctures of highways with greater circulation of passenger vehicles, with the objective of organizing the control and supervision of operations and the faithful compliance with the Law and this Regulation.

PROCEDURE FOR CHALLENGING SANCTIONS: For the challenge of sanctions imposed, the procedure established in the Administrative Procedure Law must be followed.

POLICE ASSISTANCE: The National Directorate of Traffic must provide police assistance, when requested by the Inspectors for the conduct of inspection and oversight actions that correspond to them.

NATIONAL SCHOOL OF LAND TRANSPORTATION (ENTT): The National School of Land Transportation is in charge of the accreditation of drivers for the provision of public and special services, as well as for drivers of private vehicles. Private Driver Training Schools destined to train or instruct drivers for the provision of public and special land transportation services, as well as for drivers of private vehicles, must be authorized by the National School of Land Transportation. To obtain a Driving License, the interested party must demonstrate having approved the theoretical and practical training or instruction process by a certified private school and furthermore, must have obtained accreditation from the National School of Land Transportation. The Institute, in its capacity as settlor and beneficiary, must incorporate the school system referred to in this Article into the Public-Private Partnership project denominated "Operation, Operation, Financing and Administration of the Vehicle Property Registry at National Level and Implementation of Vehicle Inspection Centers, Supply of License Plates, Issuance of Driving Licenses, Modernization of the Traffic Violations and Penalties System and the Technification of Fine Collection", approved by Legislative Decree No. 369-2013 of March 22, 2014.

AUTHORIZATIONS FOR PRIVATE DRIVER TRAINING SCHOOLS: To obtain authorization for a private driver training school, in any of its modalities, an application must be submitted to the Institute, complying with the formalities of the Administrative Procedure Law, and through which the following requirements must be demonstrated:

• 1)

  Articles of incorporation of the commercial company;

• 2)

  National Tax Registry;

• 3)

  List of permanent instructor personnel that it will hire, with a description of their experience or training;

• 4)

  List of the vehicles it owns or will acquire to fulfill the tasks of driver and pilot training and instruction, which must have all the equipment and instruments necessary for practical learning. These vehicles must have a Certificate of proper operation issued by the manufacturer, its distributor, or, failing that, by certified workshops in the country; and,

• 5)

  List of all instructional material, manuals, and equipment to be used in the tasks of driver and pilot training and instruction. The instructional and training didactic material must comply with the content approved by the Institute according to each type of Driving License that a driver or pilot requests. Prior to resolving, the Institute must conduct a detailed review and physical inspection of the facilities proposed for school operation, the material and equipment to be used, to verify that minimum requirements are met for authorization. Every school must at least be equipped with teaching classrooms, projectors, instructional material, mechanical components, and other necessary equipment to provide a quality service. Upon completion of the inspection, the corresponding Legal Opinion will be issued and subsequently, the corresponding Resolution will be issued. With the authorizing Resolution issued by the Institute, the corresponding Municipal Operating Permit may be applied for and obtained. Every request of this type must be resolved within a period of thirty (30) business days counted from the date on which the applicant has satisfied all requirements. CHAPTER II ORGANIZATIONAL STRUCTURE

ORGANIZATIONAL STRUCTURE: Within its organizational structure, the Institute, in addition to the units contained in the Law, must have at minimum the following areas:

• 1)

  Executive Direction;

• 2)

  Administrative Management and Human Resources;

• 3)

  Operations Management;

• 4)

  Process and Compliance Management;

• 5)

  Legal Management;

• 6)

  Internal Audit; and,

• 7)

  Project Coordination Unit (UCP).

REQUIREMENTS FOR EXECUTIVE, MANAGERIAL, AND SUPERVISORY PERSONNEL: The same requirements apply to them as for applying to the General Inspectorate of Land Transportation, favoring professionals with undergraduate or graduate training in the areas of project management, public policy, industrial engineering, administration, and finance.

EXECUTIVE DIRECTION: It is the highest executive authority within the Institute, charged with coordinating and executing the policies emanating from the Directive Commission, within the framework of its attributions and competencies. Likewise, it is the body charged with executing the Resolutions and Agreements issued by the Directive Commission and with verifying that the institutional and operational objectives of the Institute are met, serving as support for the fulfillment of the tasks and activities that correspond within the framework of the legal and regulatory attributions of the General Inspectorate of Land Transportation and the National School of Land Transportation. Without prejudice to the general functions inherent to its position, it corresponds to it:

• 1)

  To execute the operational direction and execution of plans, programs, and projects approved by the Directive Commission;

• 2)

  Through the Administrative Management and Human Resources area, to prepare and execute the Institute's budget for approval by the Directive Commission;

• 3)

  Through the Process and Compliance Management area, to prepare, coordinate, execute, and follow up on the Institute's strategic plan and annual operational plan for approval by the Directive Commission;

• 4)

  Through the Process and Compliance Management area, to present to the Directive Commission for approval the Institute's annual report;

• 5)

  To coordinate and supervise the fulfillment of the functions and activities of the management areas, divisions, departments, supervisory positions, and other officials and employees of the Institute;

• 6)

  To coordinate and execute the tasks that correspond to be performed within the framework of compliance with the Law of Transparency and Access to Public Information; and,

• 7)

  Such other functions as the Directive Commission may delegate.

ADMINISTRATIVE MANAGEMENT AND HUMAN RESOURCES: It is in charge of work related to the administration and disposition of the entity's assets; the selection, recruitment, hiring, promotion, removal, and administration of the Institute's human resources; and the other financial and material resources of the institution. Among some of its principal functions are the following:

• 1)

  To maintain the institution's accounting and present financial and accounting reports to the Executive Direction on a monthly, quarterly, half-yearly, and annual basis;

• 2)

  To plan, organize, direct, coordinate, and control all administrative processes of the institution in order to meet the established objectives;

• 3)

  To administer and safeguard the institution's assets in accordance with applicable legal and regulatory dispositions; and,

• 4)

  To develop, execute, and control the assigned budget, with the purpose of achieving maximum use of the resources granted, according to applicable legal and regulatory dispositions; likewise, to present monthly reports of budget execution.

OPERATIONS MANAGEMENT: It is in charge of the operation and execution of the tasks and public objectives of the Institute and the Directive Commission, with the exception of those that by Law correspond to other units of the Institute. Likewise, without prejudice to the authorizing function of the Directive Commission, it is the Management charged with executing the functions described in Article 5.6 of the Law, the Vehicle Renewal Program; the transportation operations control center, including fleet control systems and user information, collection, and embedded video surveillance; the regulation of the service according to its different modalities and information technology services for all units of the Institute. Likewise, it is in charge of the citizen service area to attend, process, authorize, and issue all proceedings, permits, and licenses contained in the Law, with the exception of authorizations that correspond to the Directive Commission, unless they have been wholly or partially delegated; for which it must coordinate with the General Secretariat the delegation of the functions and attributions that correspond in order to expedite and simplify all the Institute's proceedings. The citizen service area must operate as a single window for the management of concessions, route expansions, route certificate, operating permit, and other certificates. The Management is responsible for controlling the collection of income, current account, and collection management.

PROCESS AND COMPLIANCE MANAGEMENT: It is in charge of developing, publishing, and continuously improving all operational processes with internal and external impact of the Institute, executing functions in strict adherence to the principles of consistency of criteria, expedience, agility, and process simplification; seeking to the extent of legal possibilities to eliminate discretionalism and arbitrariness in the taking of operational decisions. This Management has as mandate to obtain within the first two (2) years of creation of the Institute, the certification of its processes under the ISO 9000 standard and is responsible for maintaining said certification annually; for which all units of the Institute must comply with the recommendations that the Management issues. Likewise, the Management must verify the fulfillment of the strategic and operational objectives of all units of the Institute, and must report monthly and annually to the Directive Commission for its approval.

LEGAL SERVICES MANAGEMENT: It is in charge of providing legal advisory services to the Directive Commission, the Advisory Council, the Executive Direction, and to the other Units of the Institute, both concerning institutional aspects, and concerning processes related to land transportation operations and everything related to the subject matter.

INTERNAL AUDIT. It is responsible for the fulfillment of the attributions and faculties that the General Law of Public Administration and its Regulation confer upon it; as well as those that correspond to it in accordance with the Law of the Superior Court of Accounts, its General Regulation, its special regulations, and other regulations issued by the Plenary of said Court.

PROJECT COORDINATING UNIT (UCP). It is responsible for the continuity of the implementation of the Public Land Transport modality of Rapid Transit Buses (BTR) and other modalities that the Board of Directors may delegate to it, as well as monitoring the functions established in the Legislative Decree creating the BTR and its respective agreements, such as: Loan Agreements with bilateral or multilateral cooperation organizations, among others. Likewise, it must coordinate with the Operations Management the administration of all processes for acquisitions and hiring of specialists, national or international, that are required for the design and implementation of the following programs: Institutional Reengineering Program, Route Restructuring, Vehicle Renewal Program, transport operations control center, including fleet control systems and user information, collection and on-board video surveillance; the regulation of the service according to its different modalities and information technology services for all departments of the Institute. The UCP is composed, at a minimum, of a Program Coordinator, transport operations coordinator, new projects coordinator, administrative specialist, acquisitions specialist, environmental specialist, communications specialist, monitoring and evaluation specialist, engineering coordinator, among others. TITLE III PROVISION OF LAND TRANSPORT SERVICE CHAPTER I GENERAL PROVISIONS

PRINCIPLES. The land transport of persons and cargo is an essential service that responds to the principles of:

• 1)

  RESPONSIBILITY.- The State approves the policies, regulations, and controls necessary to promote compliance, by users and operators of land transport, with the provisions established in the Agreements, the Law, the Regulations and applicable Technical Standards.

• 2)

  UNIVERSALITY.- The State guarantees access to land transport service, without distinction of any kind, in accordance with the provisions of the Constitution of the Republic and applicable laws.

• 3)

  ACCESSIBILITY.- It is the right that users have to authorization and of their goods, and consequently the entire transport system in general must respond to this purpose.

• 4)

  COMFORT.- It constitutes part of the level of service that operators of land transport of persons and cargo must comply with and demonstrate, in accordance with the standards, technical regulations, and homologations that may be established for each modality and service system by the IHTT.

• 5)

  CONTINUITY.- In accordance with the provisions of their respective Exploitation and Operation Permits, authorizations granted by the State without delays or interruptions.

• 6)

  SAFETY.- The State guarantees the efficient mobility of transport of persons and cargo, through an adequate road infrastructure and services, which allows operators in turn to guarantee the physical integrity of users and of transported goods while respecting road safety standards and other added values offered by transport operators to their users.

• 7)

  QUALITY.- It is the fulfillment of the service parameters established by the competent bodies of land transport, transit, and road safety and other added values offered by transport operators to their users.

• 8)

  STANDARDIZATION.- Through the technical process of homologation established by the Institute, it will be verified that vehicles entering the vehicle fleet comply with the standards and technical regulations of safety, environmental and comfort standards issued by the authority, allowing the establishment of a service standard at the national level.

• 9)

  ENVIRONMENT.- The State guarantees that vehicles entering the national vehicle fleet comply with environmental standards and promotes the application of new technologies that allow reducing the emission of polluting gases from vehicles.

• 10)

  FREE COMPETITION: All concessionaires are guaranteed equality of rights and conditions, as well as the adoption of mechanisms that promote equal opportunities among Concessionaires.

PUBLIC LAND TRANSPORT SERVICE. Without prejudice that other modalities could be included in the future, Public Land Transport is classified into:

• 1)

  URBAN.- It is the term applied to collective passenger transport, where public transport travelers must adapt to the schedules and routes offered by the operator. Usually travelers share the means of transport, and the different units are available to the general public. It can be regular, rapid, executive, rapid transit buses (BTR) and other mass transit systems that could be implemented in the future.

• 2)

  INTERURBAN.- The one that occurs between different towns of a city or occurs between different cities. It can be regular, direct, and executive.

• 3)

  TAXI.- A vehicle for hire, with a driver, used in the transport service of one or a small group of passengers headed to different destinations by contract or for money. These can be classified into the following types: a. Collective or point taxi.- They have a determined route and fixed price which varies depending on the distance to be traveled, in some cases a special fee may be paid and the passenger is dropped at a more specific point, if that point does not deviate from the authorized route. b. Direct or neighborhood taxi.- Usually, in this mode of public transport, the user determines the places where the passenger is picked up and dropped off. That is, unlike other types of public transport, such as the bus, the service offered by taxi is characterized by being door-to-door. c. Radio taxi.- Taxi equipped with a radio transmitter and receiver or telephone that, connected to a physical or electronic central station, informs the taxi driver of the services requested by customers.

• 4)

  MOTOTAXI.- A three (3) wheeled motorcycle with a roof used as a popular means of transport for short distances, in exchange for money in the same way as a taxi and is intended for the provision of individual public passenger transport service.

• 5)

  MOTOCARGA.- It is a motorized tricycle for light transport, of three wheels, whose front part derives from the mechanical part of a motorcycle and the rear part consists of a cargo space for the delivery vehicle.

• 6)

  CARGO.- Merchandise, livestock, things or species and all types of goods or merchandise that are transferred from one place to another by motor vehicles or other means of land transport. It can be General or Specialized, which must have special regulations in accordance with the international agreements of which Honduras is a part. a. Non-Specialized or General Cargo.- Transfer of products and merchandise that do not require special handling and do not represent a threat to the safety of persons and property. b. Specialized Cargo.- Transport of all those products that require special treatment, including special handling and care and that may pose a risk to the safety of persons and the environment.

• 7)

  INTERNATIONAL.- It is the transport service that concessionaires carry out from one country to another; which is provided with vehicles within national territory without engaging in cabotage or that passes in transit through Honduran territory. This can be of persons or cargo. Other modalities that the Institute authorizes.

REQUIREMENTS TO OBTAIN THE EXPLOITATION PERMIT: To obtain the exploitation permit, interested parties must submit an application in accordance with the Administrative Procedure Law, in which they must specify the modality of the type of transport service they wish to offer; complying with the following requirements:

• 1)

  Identity card in the case of natural persons; deed of incorporation or certification of legal status of the interested party, in the case of legal entities;

• 2)

  Fixed telephone, mobile telephone, and email contact information of the applicant;

• 3)

  National Tax Registry (RTN);

• 4)

  The partners or members, as well as the legal representative of the applicant must accredit: a. Certificate of not having current criminal records issued by the Judicial Branch. b. Certificate of not having pending accounts with the State issued by the General Office of the Republic (PGR). c. Certificate of current tax compliance issued by the Tax Administration Service (SAR).

• 5)

  Evidence of complying with the provisions of Articles 23, 24, and 27 of the Land Transport Law of Honduras;

• 6)

  Title of ownership or equivalent ownership certification of the vehicle with which the service will be provided;

• 7)

  In case the applicant is not the owner of the unit or units indicated in the application, they must provide the corresponding contract or legal document that certifies authorization to dispose of them;

• 8)

  Certificate of inspection of the vehicle with which the service will be provided; and,

• 9)

  Sworn declaration, authenticated before a Notary Public, by the legal representative of the interested party, stating that they will use the unit indicated in their application exclusively for the land transport service in the modality requested and in which expressly states that they understand that violation of the provisions of this law and its regulations will authorize the Institute to cancel the exploitation permit that may eventually be granted.

COVERAGE OF MANDATORY INSURANCE TO RESPOND FOR DAMAGES TO THIRD PARTIES: It is an insurance that must be contracted by every owner of a motor vehicle, trailer, or cargo with an insurance company. Its coverage allows payment of hospitalization expenses or medical, surgical, pharmaceutical, and dental care, or rehabilitation of a person occupying or not occupying a vehicle that suffers a traffic accident in which an insured vehicle participates. In case of disability or death, it will indemnify the affected person or the heirs, as applicable.

DATABASE OF INSURED VEHICLES: The Institute must incorporate into the database of its integrated system the insurance information of vehicles, which is available to users for public consultation.

PUBLIC-PRIVATE PARTNERSHIP.- For the purpose of avoiding unnecessary costs and procedures for users and vehicle owners, the Institute must incorporate into the IP Property system the office, all information related to registrations, authorizations, licenses, permits, certificates, and insurance, among others, within the framework of the Public-Private Partnership previously referred to. CHAPTER II SPECIAL TRANSPORT SERVICE

SPECIAL TRANSPORT SERVICE.- It is one whose business is not the provision of public transport service, so it will not share the stations intended for regular public service and will be conferred through a private contract between the service provider and the client, which will require a special permit from the Institute. In accordance with Article 50 of the Law, transport units dedicated exclusively to this type of service must be marked with a distinctive colored stripe that identifies the nature of the service and includes the registration number, preceded by the initials STE (Special Transport Service), as well as the other technical specifications that the Institute considers appropriate.

SPECIFIC REGULATIONS FOR SPECIAL TRANSPORT SERVICE: In order to regulate the conditions and other aspects that regulate Special Transport Service, once the Board of Directors is constituted, a Special Regulation will be approved that will develop the precepts and general conditions established in this Chapter.

TYPES OF SPECIAL TRANSPORT.- Special Transport Service can adopt the following modalities:

• 1)

  Student Transport;

• 2)

  Worker Transport;

• 3)

  Tourism Transport;

• 4)

  Excursion Transport;

• 5)

  Transport for Social and Religious Groups;

• 6)

  Private Cargo Transport; and,

• 7)

  Any other type that arises and that the Institute authorizes and others that are established in the Specific Regulation.

GENERAL REQUIREMENTS FOR THE PROVISION OF SPECIAL TRANSPORT SERVICE. These are the general requirements that concessionaires must comply with to provide special transport service:

• 1)

  Units must display a colored stripe that identifies them as Special Transport Service, according to their nature;

• 2)

  Units with a capacity of no less than fifteen (15) seated passengers;

• 3)

  Subscription of a service contract that accredits the relationship between the service provider and its clients, as well as the price agreed upon by mutual agreement between the parties, as applicable. The contract stipulations must coincide with what the Land Transport Law and its Regulations establish; and,

• 4)

  They must comply with the same technical requirements demanded of Public Transport Service concessionaires, in terms of safety, quality, and efficiency, as applicable.

SERVICE PROVISION CONTRACT: Special Transport Service may be contracted with natural or legal persons, the latter being legally constituted. In no case may Special Transport Service be provided without the subscription of the respective Contract that establishes at a minimum, the object of the same, the obligations of the parties, the characteristics of the units, number of units, schedules and itineraries, number of stops, route and/or travel, number of students, workers, tourists, among others and other applicable matters according to the required modality, without prejudice to other stipulations that are indicated in the Special Regulation issued for that purpose and those that the parties deem appropriate. Special Private Transport used for its own purposes is excepted. To provide the special service, the respective permits that are required must be obtained.

PERMITS: For the authorization or renewal of Exploitation Permits of Special Transport Service, the applicant must attach a copy of the duly authenticated service provision contract for transport, in cases where applicable.

COMMON REQUIREMENTS FOR OBTAINING SPECIAL TRANSPORT SERVICE PERMITS: To obtain the necessary permits in the different modalities of Special Transport Service, the following general requirements must be presented to the Institute, without prejudice to the Specific Requirements for each modality:

• 1)

  Application for special transport specifying the modality that is intended to be authorized;

• 2)

  Photocopy of the document accrediting Power of Attorney in case the application referred to in the first numeral is presented through a third party, or of the Legal Representative in the case of a Legal Person;

• 3)

  Duly authenticated copy of the identity document and National Tax Registry of the owner and the driver, if applicable, or of the Attorney-in-Fact in case it is presented through a third party;

• 4)

  Copy of the Public Deed of Incorporation duly registered, in the case of a Legal Person;

• 5)

  National Tax Registry (RTN) of the Legal Person, as applicable;

• 6)

  Photocopy of the document proving payment of the annual single vehicle fee, duly authenticated;

• 7)

  The applicant must present a vehicle certificate or certification of good condition, original and current, issued by a qualified body, with the exception of zero kilometer units;

• 8)

  Photocopy of the pilot certificate, duly authenticated;

• 9)

  Original certifications of criminal and police records of the owner of the unit(s) and of the driver;

• 10)

  Photocopy of the Driver's License, duly authenticated; and,

• 11)

  Electronic certificate of Tax Compliance. CHAPTER III EXECUTIVE SERVICES AND PREFERENTIAL ATTENTION TO PASSENGERS IN GENERAL LAND TRANSPORT SERVICE

EXECUTIVE OR LUXURY TRANSPORTATION SERVICE: For all modalities of transportation service, it is considered Executive service if it complies with all the following minimum conditions:

• 1)

  Comfort, accessibility and operation conditions superior to basic service, such as greater space between seats, larger trunk storage;

• 2)

  It will offer its services using only technological means, including platforms for timely and efficient attention to users;

• 3)

  Payment is made only through electronic means;

• 4)

  Regulated minimum fare, which in no case shall be equal to or less than the basic level;

• 5)

  Rating of the service and the driver; and,

• 6)

  The technological platforms shall be owned by the transportation companies or contracted with third-party owners and must obtain authorization from the Institute. Said platform must have the ability to rate and identify the driver and the user, identify the vehicle that will provide the service and know the approximate value of the service. Providers of this type of service may form Operating Consortiums to fulfill their objectives.

PREFERENTIAL ATTENTION: Persons with disabilities, older adults, pregnant women, girls and boys under five years of age and accredited students by means of current valid student identification card enjoy preferential attention. For this purpose, the transportation system in general grants the following benefits:

• 1)

  Special and properly signaled areas and access, in accordance with the technical standards and regulations of the Institute for this type of services;

• 2)

  Special assistance to the persons referenced in this section, according to their needs, facilitating their access to vehicles and offering them the greatest comfort within the respective category. Furthermore, the physical infrastructure of the vehicle and transportation corridors must be accessible to this group of users. The Institute and its auxiliary bodies, within the scope of their competencies, shall monitor compliance with these obligations;

• 3)

  Right to board the bus prior and prioritarily to any other user. If necessary, the person in charge of providing the service shall determine the convenience of descending first or at the end of the departure of the remaining passengers;

• 4)

  Wheelchairs, baby strollers, crutches, canes or other equipment required by the persons referred to in this chapter shall be transported free of charge as priority luggage; 7) Children under five years of age shall not pay any fare. CHAPTER IV TRUSTS

TRUSTS.- In application of Legislative Decree 369-2013 of January 20, 2014, published on March 22, 2013, containing the provisions of the "Trust Contract for the Project of Operation, Functioning, Financing and Administration of the Vehicle Property Registry at the National Level and Implementation of Vehicle Inspection Centers, Supply of License Plates, Issuance of Driver's Licenses, Modernization of the Traffic Infraction Sanctions System and Technification of Fine Collection," approved through Legislative Decree No. 369-2013 of March 22, 2014. The Private Operating Investor that is hired, within the framework of the aforementioned public-private partnership trust, shall include within its scope the implementation of the vehicle inspection centers project, in accordance with the regulations approved in the exercise of its competencies by the Property Institute and the Honduran Institute of Land Transportation, as well as the driver's license issuance project.

ADMINISTRATIVE TRUSTS.- Without prejudice to the provisions of the preceding Article, the Institute, through the Commission for the Promotion of Public-Private Partnership (COALIANZA), shall create a trust whose purpose and objective is the operation of the system referred to in Article 92 of the Law, which shall be constituted with eighty percent (80%) of the funds from the remaining resources already committed in the trust described in the preceding article. CHAPTER V COST OF SERVICE, TARIFFS AND PAYMENTS

DETERMINATION OF TARIFFS. Once the Commission is selected and incorporated into the Commission, it has a maximum period of ninety (90) days to conduct the technical studies, valuation and necessary determinations to establish the tariffs for the provision of Public Service by the Concessionaire, taking into account the variables of the specific operating costs established in the Law. For this purpose, a Special Regulation must be created that determines the costs, tariffs, payments, formulas, mechanisms and procedures to be used by the Institute for the application and compliance with the Law, to which the concessionaires must comply once said regulation is approved and published.

MODIFICATIONS TO TARIFFS: The Special Regulation alluded to in the preceding Article may also establish that in case modifications to tariffs are required, the Institute shall conduct the necessary reviews to determine the appropriateness of making said modifications, prior to their approval by the Board of Directors.

SYSTEM FOR TARIFF COLLECTION: The system for tariff collection comprises the services of sale, recharge of prepaid electronic cards, the distribution of access validation means to the system, as well as the handling and custody of revenues until their delivery to the fiduciary entity. All of the above is provided as part of the concession of the Integrated Public Transportation System (SITP). The procedures for establishing the formula and distribution of collection, as well as the specific procedures for carrying out and reporting the collection shall be established in the Special Regulation implemented for this purpose.

GENERAL CRITERIA FOR TARIFF COLLECTION THROUGH ELECTRONIC CARDS: The prepaid electronic cards shall be easily identifiable by their color to differentiate the different types of tariffs that the Institute defines; recording the corresponding payment, prioritizing the safety and rights of users. Enabled cards must have computer security mechanisms, as well as coded series and numbering for each modality of use. In the case that preferential tariff cards are implemented, these shall be personal and non-transferable and shall contain on their reverse side the photograph and identification data of the user. Service operators shall be responsible for generating and maintaining the database and files with the users' documents that personalize the cards so as to facilitate renewal in case of loss or replacement of the card, without the need to resubmit documents. To encourage the use of prepaid electronic cards, the Institute in coordination with the SITP concessionaire may design promotions and incentives, which may include special bonuses for students, discounts, free passes, promotional cards and access to other national or municipal services. The physical, graphic and promotional model of electronic cards must be approved by the Institute. CHAPTER VI SANCTIONS

PAYMENT OF SANCTIONS: The payment of sanctions that are applied shall be made no later than thirty (30) days after they were imposed, following the procedures established in the collection control system implemented by the Institute. Non-compliance with payment of sanctions within the granted periods generates interest and surcharges in accordance with what the Institute establishes in its specific regulations, without prejudice to the application of other measures deemed appropriate by the Institute.

AUTOMATIC DEDUCTION OF SANCTIONS: The sanctions that are defined in the concession contracts, according to the modalities of operation, and that can be determined automatically through the systems implemented to control the operations of the concessionaires, shall be deducted from the payment of service consideration through the collection control system.

CHALLENGE TO SANCTIONS. The process to follow to challenge an imposed sanction shall follow the procedure established in the Administrative Procedure Law.

SANCTION FOR OFFERING OR ACTUALLY PROVIDING LAND TRANSPORTATION SERVICE WITHOUT STATE AUTHORIZATION: The natural or legal person who offers or actually provides land transportation service in any of its modalities without the authorization of the State shall incur a very serious infraction in accordance with article 80 numeral 1) of the Law, and shall be sanctioned with a fine equivalent to two (2) minimum salaries, and as long as payment is not made effective the unit shall be seized for up to six (6) months and the referral of the sanctions file to the Board of Directors, in order to establish the corresponding criminal action as well as the consequent definitive cancellation of the driver's license.

SANCTION FOR DRIVING A MOTOR VEHICLE WITHOUT INSURANCE: The driver who is caught driving a vehicle without the corresponding mandatory insurance shall be sanctioned, in accordance with what is established in article 83 of the Law. TITLE IV INTEGRATED PUBLIC TRANSPORTATION SYSTEM CHAPTER I INTEGRATED PUBLIC TRANSPORTATION SYSTEM

CONCEPT. It is the system that comprises the actions for the articulation, linkage and integrated physical, technological and tariff-based operation of the different modalities of public transportation; as well as the requirements for infrastructure, accessibility, circulation and collection of the system. Said system shall be directed by the institutions and bodies established by law for the functioning of the public transportation system.

COMPONENTS OF THE INTEGRATED PUBLIC TRANSPORTATION SYSTEM. The following form part in an enunciative but not limiting manner of this system:

• a)

  National Public Transportation Safety System;

• b)

  Public Transportation Registry System;

• c)

  Service Quality Evaluation System;

• d)

  Sanctions, Infractions and Fines System;

• e)

  General Collection System;

• f)

  Onboard Collection System;

• g)

  System of Stations, Stops and Terminals; and, h. Operations Control Center. CHAPTER II NATIONAL PUBLIC TRANSPORTATION SAFETY SYSTEM

CONCEPT. It is the systematic set of institutions involved, users, concessionaires, operators and other participants, actions, norms, technological tools of information and/or communication, which have as their objective to guarantee the safety of users of public land transportation, as well as of concessionaires and transportation operators.

TECHNOLOGICAL AND/OR COMMUNICATION FUNCTIONS. In order to guarantee the effectiveness of the safety system, the technological and/or communication tools embedded in the units of urban and interurban public land passenger transportation shall comply at a minimum with the following functions and equipment in relation to safety, without prejudice to the expansions that are deemed convenient and necessary for their proper functioning in accordance with current technology:

• 1)

  Security Cameras: Transportation units shall have real-time security cameras, which shall interoperate with the camera systems installed on roads, stations, stops, terminals, among others, which shall collectively respond to a single system of alerts and immediate responses to public transportation safety emergencies, managed by the inter-institutional unit of security forces, intelligence, prevention and reaction referred to in Article 89 of the Law.

• 2)

  Global Positioning Systems (GPS): Transportation Units shall have a global positioning system (GPS) for the purpose of knowing in real time the location of all transportation units in order to efficiently coordinate response actions and facilitate their monitoring and tracking.

• 3)

  Panic Button: All transportation units shall have a panic button which shall be installed strategically so that pilots can activate it without being detected when they consider they are in a situation of imminent danger. The panic button alerts the emergency status in the security control center to coordinate immediate response actions.

• 4)

  Unit Identifier (Bar Code, RFID or current technology): The type of identifier adopted shall allow remote identification of the transportation unit and the linking of its associated information, in order to guarantee whether any transportation unit is authorized to operate under the modality granted through the respective permit.

• 5)

  Pilot Identifier: Remote identification system that allows validating the authorization that the Pilot has regarding the type of license possessed to operate a specific unit.

• 6)

  System for Monitoring and Tracking of Transportation Units: This system shall contribute to guarantee the effectiveness of response actions through vehicle fleet tracking and control tools, regarding schedules, itineraries, deviations of the unit from the assigned route and other aspects to be controlled and supervised.

• 7)

  User Information System: This system shall provide users with information about routes, stops, terminals, prices, charging stations, stations, frequencies, itineraries and other aspects of interest to users.

• 8)

  Security Control Center: It is the Center where video, surveillance, positioning, unit and pilot identification systems, panic button alerts, among others, shall be coordinated.

VERIFICATION OF EQUIPMENT. Certified workshops shall verify that public remunerated passenger transportation units have the equipment referred to in the preceding Article, as well as the proper functioning of technology and/or communication tools. Prior to issuance or renewal of the vehicle certificate or good functioning certification, the Control and Supervision Unit of the General Land Transportation Inspectorate (IGTT), shall ensure that the equipment always remains on board in good condition, as well as apply the respective sanctions, fines or penalties for non-compliance. It is the obligation of pilots, operators and transportation concessionaires to guarantee the care of the equipment.

GOVERNANCE OF THE SYSTEM: The National System of Land Transportation Safety shall be governed by the National Council of Defense and Security, which together with the Directive Commission of Land Transportation (CDT) must implement the Safe Routes Program, in accordance with the authority granted by the Law in Article 5, numeral 6. Said Program comprises the adoption of necessary mechanisms and implementation of all elements that improve route safety. The National Council of Defense and Security shall create a control and security unit, which exclusively shall be responsible for managing the National System of Land Transportation Safety. Within its functions is that of implementing a phased program that guarantees the safety of users of public land passenger transportation, urban and interurban and in all its modalities, as well as of concessionaires and transportation Operators. CHAPTER III PUBLIC TRANSPORTATION REGISTRATION SYSTEM

CONCEPT. It is a set of integrated technological and programming tools, in order to maintain a public transportation registry, where units, concessionaires and pilots shall be registered, identified and linked with the obligations and rights granted in the different concession contracts, operating permits, operation certificates, vehicle certificate or good functioning certification and special permits. Every procedure and authorization shall be registered in this system, which shall also implement a unique number for concessions and operating permits linking it to the vehicle plate. This System shall be coordinated by the Institute together with the Property Institute (IP).

COMPONENTS: The components of the Public Transportation Registration System are:

• 1)

  Pilot registry;

• 2)

  Registry of concession contracts;

• 3)

  Registry of operating permits;

• 4)

  Registry of operation certificates;

• 5)

  Registry of special permits; and,

• 6)

  Registry of vehicle certificate or good functioning certification.

SINGLE WINDOW: The Institute is obligated to implement the single window in central and regional offices, where this system shall function, as well as online services that facilitate user access to the procedures of the respective registry.

PILOT REGISTRY. This registry must register and link among other information the following:

• 1)

  System of registration and identification of pilots;

• 2)

  Current categorization of pilots and training history;

• 3)

  Work history;

• 4)

  Registry of infractions and sanctions committed;

• 5)

  Integration of information from the National Registry of Persons (RNP);

• 6)

  Information regarding the issuance of land transportation licenses;

• 7)

  Integration of information from the system of issuance of driver's licenses; and,

• 8)

  Any other additional information that may be relevant to this Registration System.

REGISTRY OF CONCESSION CONTRACTS: In this registry the following data must be registered and linked among others:

• 1)

  Certification of compliance with the requirements that are defined by applicable laws and norms for Concession Contracts to be approved;

• 2)

  Requirements and steps to renew, modify or cancel the concession;

• 3)

  Information of the natural or legal person concessionaire;

• 4)

  Link if there are other concessions assigned to the same concessionaire;

• 5)

  Routes assigned to the concessionaire, operating permits, operation certificates, vehicle certificate or good functioning certification;

• 6)

  Unique Concession Identifier;

• 7)

  Registry of Exclusive and/or Common Routes to the Concession: Roads, stations and terminals of the routes;

• 8)

  Modality of service;

• 9)

  Registry of fines and sanctions for non-compliance; and,

• 10)

  Quality indicators system of fines and sanctions for non-compliance.

REGISTRY OF OPERATING PERMITS. This registry must register and link among other information the following:

• 1)

  Permit Identifier (Bar code, Radio Frequency Identification, or others that may be implemented);

• 2)

  Name or corporate name of the holder;

• 3)

  Route;

• 4)

  Schedules; a. Itineraries b. Fares c. Stops or stations;

• 5)

  Date of Issuance;

• 6)

  Date of Expiration;

• 7)

  Quality indicators of the system, fines and sanctions for non-compliance;

• 8)

  Obligations;

• 9)

  Prohibitions;

• 10)

  Other Sanctions;

• 11)

  Types of Vehicles covered by the permit; and 12) Requirements and steps to grant, renew, modify or cancel the permit.

REGISTRY OF VEHICLE CERTIFICATE OR GOOD FUNCTIONING CERTIFICATION. This registry must register and link the following data:

• 1)

  License Plate Number;

• 2)

  Certificate Identifier (Bar Code, RFID or current technology);

• 3)

  General data of the vehicle in accordance with the vehicle property registry in which it must be previously registered;

• 4)

  Date of issuance of the certificate;

• 5)

  Date of expiration of the certificate;

• 6)

  Vehicle inspection diagnosis; and,

• 7)

  Any other relevant information.

REGISTRY OF OPERATION CERTIFICATE. This registry must register and link among other information the following data:

• 1)

  Operating Permit Number;

• 2)

  Operation Certificate Number;

• 3)

  Vehicle Certificate Number or Good Functioning Certification;

• 4)

  Name or corporate name of the Concessionaire;

• 5)

  Modality of service;

• 6)

  Date of Issuance of the certificate.

• 7)

  Date of Expiration of the certificate;

• 8)

  Number of seats or passengers;

• 9)

  Permit Identifier (bar code etc.);

• 10)

  Quality indicators sanctions, fines or penalties;

• 11)

  Requirements and steps to grant, renew, modify or cancel the certificate;

• 12)

  Characteristics of the Unit authorized for the provision of the Transportation Service; and 13) Any other relevant information. CHAPTER IV: SERVICE QUALITY EVALUATION SYSTEM

CONCEPT. It is the planned and systematic method of means and actions, designed to ensure the quality of service to users, through indicators: that guarantee that the public transportation service meets their expectations and complies with all regulatory and technical requirements. Compliance with this system shall be the responsibility of concessionaires, operators and pilots; and the supervision of compliance with this system shall be the responsibility of the corresponding Unit of the General Inspectorate of the Institute, who shall also receive information from the Fleet Monitoring and Control System, to generate automatically the compliance reports to the indicators established in the Concession Contracts. The General Inspectorate, through the corresponding Unit, is responsible for applying the different sanctions, fines or penalties for non-compliance.

QUALITY INDICATORS: The Concessionaire shall comply with the Quality Standards and Service Levels that are defined in the Concession Contract, for which the Indicators shall be incorporated that will allow measuring in a specific, timely, pertinent and viable manner, the Service Level of the transportation system. Some of the mandatory indicators to include in contracts are: a. Accessibility: Physical and psychological ease of use of the system and user information means. b. Level of Information Provision: Regarding indications to users about stations, terminals, schedules, itineraries, fares and other elements of the service to be used by the user. c. Time: Duration of the trip, coordination and compliance with schedules and itineraries. d. Customer Service: Communication and personal treatment with the client, assistance and commitments. e. Comfort: Comfort, hygiene and complementary services of the system. f. Safety: Protection and prevention of aggressions and accidents, obligation to carry on-board video surveillance equipment, management of emergency situations, obligation to carry all certifications and permits required by law and its regulations. g. Environmental Impact: Minimization of impacts produced by the Public Transportation system on persons and the environment.

COMPONENTS OF QUALITY INDICATORS. Each Indicator is composed of the following elements: Identifier, Measurement Concept, Measurement Frequency, Unit of Measurement, Method of Measurement and Minimum Acceptable Value. Additionally, for each of the Indicators, a Maximum Correction Time is established during which the Concessionaire, Operator or Pilot may resolve any event in which the results of the Indicator are lower than the Minimum Acceptable Value. In accordance with the foregoing, the structure of each of the indicators corresponds to that indicated below:

• 1)

  Name: Corresponds to the name of the Indicator.

• 2)

  Identifier: Refers to the code with which an Indicator is identified.

• 3)

  Measurement Concept: Refers to the physical characteristics of the infrastructure or Equipment, Transportation units, or Operation conditions that are intended to be verified through the corresponding Indicator.

• 4)

  Frequency: Refers to the minimum periodicity with which Inspectors or the Control and Monitoring System of Units must measure each Indicator.

• 5)

  Unit of Measurement: Refers to the unit in which the measurement of the Measurement Concept is expressed.

• 6)

  Method of Measurement: Refers to the description of the procedure to perform the measurement of the corresponding Indicator.

• 7)

  Minimum Acceptable Value: Corresponds to the minimum value that is acceptable for each Indicator.

• 8)

  Maximum Correction Time: Corresponds to the maximum term available to the Concessionaire, Operator or Pilot, to correct the observed level for any Indicator, without affecting compliance with their responsibilities defined in the concession contract. CHAPTER V SYSTEM OF SANCTIONS, INFRACTIONS AND FINES

CONCEPT. It is the systematic method of means and actions aimed at maintaining a record of information concerning infractions committed by concessionaires or drivers, as well as the imposition and enforcement of sanctions, fines, or penalties as applicable.

OPERATION. There must be a centralized system in support of the infraction documentation process under the charge of the General Inspectorate through the unit created for such purpose, who may have at their disposal mobile devices integrated into the real-time system and the administrative process for the application of sanctions, fines, or penalties established in the Law and its regulations. This System must interoperate with the infractions system of the General Traffic Directorate (DGT). CHAPTER VI GENERAL COLLECTION SYSTEM

CONCEPT. It is the single system where all debit and credit operations are registered, including how the concept of Rate Measurement or other obligations is charged, corresponding to payments that are generated as a result of the Institute's operations. Primarily, the system must register and link all of the Institute's income, which includes among other concepts: On-board collection tariffs, tariffs for concessions, fines, and other income. The General Collection System must also manage a current account in which it is possible to track obligations of concessionaires that are pending payment, as well as register corrections to operations recorded in the system. The system must include all protocols and interfaces necessary to conduct collection through the institutions of the national banking system and control of the transfer of collected amounts to the trust or the National Treasurer, as applicable. CHAPTER VII ON-BOARD COLLECTION SYSTEM

CONCEPT. It is the set of equipment and technological systems aimed at the collection of tariffs applied to terrestrial transport such as urban buses, Bus Rapid Transit (BRT), and taxis, among others. This must be conducted under the modality of prepaid cards. Subsequently, other types of terrestrial transport to which the prepaid card modality applies shall be incorporated into this system, at the discretion of the Institute. CHAPTER VII SYSTEM OF STATIONS, STOPS, AND TERMINALS

STATIONS, STOPS, AND TERMINALS: Stations, stops, and terminals are part of the National System of Public Terrestrial Transport Safety. Once the Institute is in operation, the processes of restructuring, modification, or expansion of new routes must have a joint strategy between the Institute and the National Council of Defense and Security that includes physical security, technological security, and response capacity, to guarantee the safety of users, concessionaires, and transport operators.

BASIC REQUIREMENTS FOR OBTAINING PERMITS FOR TERMINAL OPERATION: Juridical or natural persons requesting authorization to obtain permits for terminal operation must submit at a minimum the following requirements, without prejudice to the Special Regulations for Stations, Terminals, and Stops, to be developed for such purpose:

• a)

  General location plan establishing the geo-reference of the station or terminal in the system of coordinates declared official by the country;

• b)

  Operating permit from the Municipality;

• c)

  Specific plan of the premises, establishing the distribution of ticket offices, parking for vehicles intended to cover the route, parking for customers which must comply with what is established in the tax plan of the respective municipality, description of the system that guarantees: supply of water, comfortable temperature, and any other facility for the user;

• d)

  Title deed of full ownership or, in its absence, a lease contract; and, e. Description of systems or appropriate mechanisms for the mobility of persons with disabilities or special needs.

ANCILLARY SERVICES. For the obtaining of authorization for the construction and operation of Ancillary Services referred to in Article 74 of the Law, the respective design and construction plans must be submitted that comply with what is established in the Building Code and the Tax Plans. CHAPTER VIII OPERATIONS CONTROL CENTER

CONCEPT. It is the unit where all information concerning internal operational management is coordinated, known by its English term as back office, of collection, operations, monitoring, and fleet control of the Integrated Public Transport System.

FUNCTIONS: The operations control center shall have the following functions:

• 1)

  Coordinate route reordering processes;

• 2)

  Account for the process of operation control and coordinate operational contingencies of the System;

• 3)

  Perform statistical processes of validations performed;

• 4)

  Perform statistical processes of reloads performed;

• 5)

  Perform collection reconciliations;

• 6)

  Control of payment systems;

• 7)

  Perform statistical processes of demand in real time;

• 8)

  Fleet control management;

• 9)

  Manage communications between installed equipment and operations control and security center;

• 10)

  Manage communications between the collection operator and the control center; and, 11. And other functions necessary for the proper functioning of the Center. CHAPTER IX FINAL PROVISIONS

NON-COMPLIANCE WITH THIS REGULATION: The non-observance of the provisions of this Regulation shall entail the disciplinary and administrative responsibilities that may apply, without prejudice to the civil and criminal responsibilities that correspond in accordance with the current legal order.

APPROVAL OF MANUALS, INSTRUCTIONS, AND SPECIAL REGULATIONS. Within a maximum period of one (1) year from the entry into force of this Regulation, the National Institute of Transport must develop the manuals, instructions, and special regulations that are necessary to carry out the different processes established in the respective Law and this Regulation, which must be approved by the Steering Commission. SECOND: This Decree enters into force from its publication in the Official Gazette "La Gaceta". Given in the city of Tegucigalpa, municipality of the Central District, on the seventeenth (17) day of the month of June in the year two thousand sixteen (2016). LET IT BE COMMUNICATED AND PUBLISHED. JUAN ORLANDO HERNÁNDEZ ALVARADO CONSTITUTIONAL PRESIDENT OF THE REPUBLIC. ROBERTO ANTONIO ORDÓÑEZ STATE SECRETARY IN THE OFFICES OF INFRASTRUCTURE AND PUBLIC SERVICES