Under the pertinent provisions of R.A. No. 7160, otherwise known as the Local Government Code of 1991, and its implementing rules and procedures the Sangguniang Bayan is given the sole authority to grant franchises for the operation of tricycles-for-hire within its territorial jurisdiction.
Pursuant to this mandate the Sangguniang Bayan enacted Municipal Ordinance No. 2010-02, as amended, prescribing guidelines and conditions for the granting, revocation and cancellation of franchise to operate tricycle-for-hire within the Municipality of Miagao. The privilege to operate a tricycle for hire is open to all residents of the municipality, subject to certain conditions, upon meeting operational and financial requirements.