REPORT ON THE AMENDMENT TO THE LAND TRANSPORT REGULATION LAW

  • It will enhance the competitiveness and efficiency of the road transport sector through regulatory reform.
  • Flexibility for companies to operate in the market is increased, administrative burdens are reduced, measures against intrusion are implemented, and the Law is adapted to EU regulations.
  • Transparency for users of regular bus passenger lines managed through concessions is increased, as they will have access to information about conditions (stops, schedules, etc.) and fares of the service they intend to use at all times.

The Council of Ministers has received a report from the Minister of Public Works and Transport regarding the Draft Law amending the Land Transport Regulation Law, aiming to improve the competitiveness and efficiency of the sector and rationalize the network of public passenger transport services.

The current Law, enacted in 1987, has become obsolete in many aspects concerning both national and EU regulations, as well as the current reality of road transport.

Enhancement of Business Competitiveness

Therefore, a new regulatory text has been drafted to first increase the flexibility for companies to operate in the road transport market.

Currently, separate authorizations are required for transportation and subcontracting operations. With the proposed amendment, it will be possible to carry out all transportation-related activities with a single authorization.

Additionally, administrative burdens for companies are reduced, as the new Law will allow them to conduct all necessary procedures with the competent transport authority (Ministry of Public Works and Transport or Autonomous Communities) online, without the need to physically visit their offices. This measure leads to a significant reduction in costs and processing times for applications.

Similarly, to save expenses on legal proceedings and expedite conflict resolution, the economic limit to access Arbitration Boards and resolve possible contract disputes is raised from six thousand to twelve thousand euros.

Enhancement of Transparency in Management

The new Law will also increase transparency in management by making registered data on authorized transport companies and intermediary agencies public. This will allow clients to know whether the transporter or agency they are hiring is authorized to conduct their activities.

This advancement is crucial because contracting with an unauthorized transporter or agency makes the client responsible and subject to administrative penalties, if applicable. Previously, if one wanted to access this information, it required making a specific inquiry to the Administration.

EU Regulations

Another highlighted aspect is the updating and harmonization of the Law with current EU regulations, especially concerning access to the market requirements, which will increase legal certainty for companies.

Additionally, the classification of road transport infringements (into minor, serious, and very serious) outlined in a EU directive is harmonized.

Prevention of Intrusion

Efforts against intrusion in the sector are also intensified by reinforcing the principle that only those with transport authorization can contract and invoice on behalf of transport services. An infraction is regulated to sanction non-compliance with this requirement under transport regulations.

Regular Passenger Lines

All the measures mentioned affect both freight transportation and discretionary passenger transportation. However, there are also several aspects within the law that are significant for the regular bus passenger lines sector, which are concessions granted by the Ministry of Public Works and Transport or the Autonomous Communities.

The new Law requires the registration of contracts for the management of regular public passenger transport services, increasing market transparency for bus line users. They will be able to obtain information online at any time about the conditions (stops, schedules, etc.) and fares of the regular service they intend to use.

(Land Transport Regulation Law)

http://www.lamoncloa.gob.es/NR/rdonlyres/FC09B05E-A127-418A-9AB2-6136AEB0A6F6/206526/LeyOrdenacinTransportesTerrestres.pdf