Unauthorized NFB services

Recently, individual operators of NFB services have gone beyond their established scope of operation and taken on new form of services which are not in accordance with the spirit and intent of the legislation and policy. Regrettably, the flexibility allowed to NFB operation has been abused by a few NFB operators. Whilst such services may provide alternative services to passengers, their mode of operation would undermine the regular transport services.

To address this problem, the Government will continue its efforts in tackling unauthorised services. The Transport Advisory Committee has also been invited to conduct a review on the licensing and regulatory framework for NFB operation. The review would consider and recommend how we should strengthen the regulatory and licensing framework for NFBs, including the operation of contract hire services which cover free bus services. It would also examine ways to enhance the enforcement process to ensure that NFBs would operate properly.

Enforcement means against unauthorized operation

1. Issue of clarification letter/ warning letters
2. Inquiry and Suspension/ Variation/ Cancellation of PSL
3. Summons
4. Fixed Penalty Ticket

Major offences and penalty of operating unauthorized NFB services

Public Bus Services Ordinance (Cap. 230)

Section 4 (1) 
Prohibition of operation of public bus service except under franchise 		A public bus service shall not be operated except under a franchise granted under this Ordinance or another enactment.
Section 4 (2)
Prohibition of operation of public bus service except under franchise		 Any person who-
(a)  operates, or manages or assists in the management of, a public bus service, or
(b)  uses, or causes or permits to be used, a bus in the operation of a public bus service,
which is operated in contravention of subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine of $100,000.

Road Traffic Ordinance (Cap. 374)

Section 30
Inquiry where passenger service licence is contravened
(1)  If the Commissioner has reason to believe in respect of any vehicle in respect of which a passenger service licence is in force that-
  (a)  the vehicle has been or is being used otherwise than for the purpose of the service authorized by the licence; or
  (b)  any condition of the licence or any provision of this Ordinance has not been or is not being complied with, he may appoint a public officer to hold an inquiry.
(2)  An officer appointed under subsection (1) shall fix a time and place for the inquiry and shall give 21 clear days' written notice thereof to the licensee.
(3)  An inquiry may be postponed if the officer conducting it thinks fit and where an inquiry is postponed the officer shall cause a notice to be served on the licensee specifying the date to which the inquiry has been postponed.
(4)  At an inquiry the officer conducting the inquiry shall consider-
  (a)  any evidence received by him, whether tendered on behalf of the licensee or otherwise, and any representations made by or on behalf of the licensee or otherwise;
  (b)  representations in writing by or on behalf of the licensee.
Section 31
Commissioner's power to cancel, suspend or vary a passenger service licence
If after considering the report of an officer who has conducted an inquiry under section 30 the Commissioner is satisfied as to the matters set out in subsection (1)(a) or (b) of that section he may-
     (a)  suspend or cancel the passenger service licence;
     (b)  suspend or cancel the passenger service licence in respect of particular vehicles; or
     (c)  vary the passenger service licence in respect of-
  (i)  routes;
  (ii)  approved purposes;
  (iii)  the number of vehicles included in the licence, and shall notify the licensee of his decision.
Section 52
Restriction on the use of vehicles
(3)  No person shall-
  (a)  drive or use a motor vehicle; or
  (b)  suffer or permit a motor vehicle to be driven or used, for the carriage of passengers for hire or reward unless- (Amended L.N. 100 of 1984)
    (i)  the vehicle is licensed as a public bus, public light bus or taxi;
    (ii)  the vehicle is licensed as a private bus and the passengers are students, teachers or employees of an educational institution, disabled persons, or persons employed to assist disabled persons; (Amended 50 of 1999 s. 10)
    (iia)  the vehicle is licensed as a private light bus and is used-
      (A)  as a school private light bus; or
      (B)  exclusively for the carriage of persons who are disabled persons and persons assisting them; or (Added 50 of 1999 s. 10)
    (iii) a hire car permit is in force in respect of the vehicle.
(4)  No person shall-
  (a)  drive or use a public light bus, a private bus, a school private light bus or a public bus other than one operated under a franchise granted under the Public Bus Services Ordinance (Cap 230); or (Amended 50 of 1999 s. 10)
  (b)  suffer or permit such a vehicle to be driven or used, for the carriage of passengers unless a passenger service licence is in force in respect of the vehicle.
(9)  No person shall-
  (a)  drive or use; or
  (b)  permit or suffer to be driven or used,
  a motor vehicle in contravention of any conditions subject to which the vehicle licence was issued.
(10)  Any person who contravenes-
  (a) this section, other than subsection (2), commits an offence and is liable in the case of a first conviction for that offence to a fine of $5000 and to imprisonment for 3 months, and in the case of a second or subsequent conviction for that offence to a fine of $10000 and to imprisonment for 6 months;
Regulation 40 of Road Traffic (Public Service Vehicles) Regulations, Cap. 374 Soliciting No driver or person acting or purporting to act on behalf of the driver of a public bus, public light bus or taxi, shall in any manner attract or endeavour to attract any person in order to induce such person to make use of the vehicle.
Regulation 57 of Road Traffic (Public Service Vehicles) Regulations, Cap. 374 Offences (4) Any person who without reasonable excuse contravenes any of the provisions of, or any requirement under, regulation 37(a), (b) or (d), 40 or 47(2), commits an offence and is liable on conviction to a fine at level 3 and to imprisonment for 6 months. (L.N. 652 of 1994)