According to Section 447 (3) (vi) RA 7160 otherwise known as the Local Government Code, the issuance of tricycle franchise was transferred to all Local Government Unit from Land Transportation Franchising Regulatory Board (LTFRB) subject to the guidelines prescribed by the Department of Transportation.

The SB Talisay passed and approved the Municipal Ordinance 11-2013 - entitled the release of tricycle franchise, where the Municipal Tricycle Franchising Regulatory Committee was established headed by the chairman of Committee on Transportation. And Section 3 of the said ordinance gives power to the MTFRB to process and release tricycle franchise.