Compensation and Rights of Commission Officers
- Annual compensations specified for Commissioner (₱10,600), Deputy Commissioner (₱7,500), secretary, auditor, engineers, and attorneys.
- Employees enjoy rights akin to classified civil service.
- Travel expenses for official duties reimbursed upon approval.
Appointment and Duties of Commission Staff
- Commissioner appoints secretary, auditor, engineers, chief attorney, assistant attorneys, inspectors, agents, and other personnel with Secretary of Justice's approval.
- Existing officeholders may continue until successors appointed.
- Commissioner exercises general executive control and supervision.
- Secretary oversees administrative business, records proceedings, administers oaths, and safeguards documents.
- Official reports published for public use with legal evidentiary effect.
Restrictions on Officials and Office Location
- Commissioners and employees prohibited from holding other profitable or professional relations with regulated public services or other government offices.
- Commission's office located in Manila; hearings may be held anywhere in the Philippines.
- Work schedules ensure continuous operation, with vacation rotations.
- Leave and retirement privileges akin to judges of the Court of First Instance.
Rule-Making and Reporting
- Power to make rules consistent with the Act and adopt a common seal.
- Rules are published in the Official Gazette.
- Annual reports submitted to the Secretary of Justice with recommendations.
Jurisdiction and Control over Public Services
- General supervision and regulation over public services including property, equipment, facilities, and franchises.
- Exceptions: ice plants, cold storage, US government services exclusively for US use, municipal warehouses, animal-drawn vehicles.
- Limited control over aircraft (only rates), Manila Railroad Company (pending government control), radio companies (only rates), and ships (only freight and passenger rates).
Definition of Public Service/Public Utility
- Includes individuals, firms, corporations, their lessees, trustees, government units owning or operating for hire:
- Transportation (railroads, motor vehicles, ships, ferries, etc.)
- Utilities (gas, electric, water, oil, sewer, telephone, telegraph, broadcasting)
- Storage (public warehouses, wharves, docks)
- Others like ice, refrigeration, canals, irrigation, pipelines
Certificate of Public Convenience Requirement
- No public service may operate without obtaining a Certificate of Public Convenience or Necessity from the Commission.
- Such certificate ensures operation promotes public interest.
Powers and Functions of the Commission upon Notice and Hearing
- Issue Certificates of Public Convenience and Necessity only to Philippine or US citizens or corporations with majority stock ownership by such citizens for up to 50 years.
- Approve franchises granted by political subdivisions subject to conditions.
- Fix rates, tolls, charges, service standards, and measurements to ensure fairness, adequacy, and compliance.
- Establish testing and examination rules for measuring devices.
- Require safe, adequate service and construction/extension of facilities if justified.
- Direct construction/maintenance of track connections or crossings for convenience and safety.
- Fix depreciation rates and require appropriate depreciation funds.
- Amend, modify, suspend or revoke certificates for misrepresentation or noncompliance.
- Regulate special vehicle types and fees.
Powers without Previous Hearing
- Investigate complaints or on own initiative regarding rates and service adequacy.
- Enforce compliance and impose penalties including suspension of certificates.
- Require payment of investigation costs.
- Appraise property for regulatory purposes.
- Order examination and testing of measuring devices.
- Authorize gauge changes, special service permits, and enforce uniform accounting.
- Require detailed annual financial and operational reports.
- Demand compliance with laws and ordinances relevant to public service operation.
- Investigate accidents linked to public services and require notices.
- Require filing of service schedules and rates.
Prohibitions for Public Service Operators
- Operating without a certificate is unlawful except where legislatively exempted.
- Prohibited from:
- Providing unsafe or inadequate service or refusing reasonable service.
- Giving unlawful discounts, rebates, preferences, or discrimination.
- Refusing to carry public mail upon lawful request and compensation.
Acts Requiring Prior Commission Approval
- Establishment or changing rates, operation or extension of services, stock issuances, and capital changes.
- Sale, lease, merger, or encumbrance of property or rights, ensuring public interest protection.
- Limits on alien ownership to maintain at least 60% Philippine/US citizen ownership.
- Restrictions on free tickets except for specified official and charitable uses.
Penalties for Violations
- Fines up to ₱200 per day for non-compliance, with suspension possible.
- Criminal fines up to ₱25,000 and/or imprisonment up to 5 years for prohibited acts by corporations.
- Fines and imprisonment up to 2,000 pesos and 2 years for persons knowingly causing or participating in violations.
- Misdemeanor penalties for damage to Commission apparatus.
- Enforcement of penalties does not waive other remedies.
- Prescriptive periods: 60 days for order violations; 180 days for other violations.
Procedural Rules and Powers
- Hearings governed by rules of the Commission; not bound by technical evidence rules.
- Authority to punish contempt summarily.
- Power to issue subpoenas for witnesses and documents; enforcement via courts.
- Oath administration and penalties for perjury.
- Witness fees equivalent to court standards.
- Sanctions for obstruction or disrespect to Commission officials.
- Testimony not excused except for self-incrimination.
- Protection of Commission secrets in civil cases.
- Power to take depositions outside Manila via commissioned persons.
- Orders served personally or by mail; effective dates specified with appeal and reconsideration processes.
Judicial Review
- Supreme Court may review Commission decisions for lack of evidence, illegality, or jurisdiction errors.
- Review may be by certiorari or petition within prescribed periods.
- Orders remain effective unless stayed by Supreme Court.
- Legal representation by Commission attorneys; Solicitor General may assist.
- Court cases involving the Commission given priority over civil cases except elections.
Fees and Charges
- Fees for registration of applications, extensions, and supervision, scaled by type and vehicle capacity.
- Annual fees based on capital stock or estimated capital and increases thereof.
- Charges for meter examination, document certification.
- All fees paid into the Philippine Treasury.
General and Transitory Provisions
- Substantial compliance with Act’s requirements suffice for validity.
- Certified copies of Commission documents admissible as evidence.
- New Commission succeeds previous Commission including pending matters and properties.
- Appropriations allocated for Commission operations.
- Severability clause preserving valid provisions if parts declared unconstitutional.
- Repeals inconsistent prior laws but retains specific related laws.
- Act effective upon approval.