Policy intent and addressed abuses
- The LTFRB requires the minimization, if not total elimination, of abuses committed by drivers that prejudice, damage, injure, or inconvenience the commuting public.
- Complaints addressed include taxicab drivers contracting with passengers instead of using taximeters, choosing/refusing to convey passengers especially for short destinations, arrogance, discourtesy, installing fast meters, and similar acts.
- Complaints addressed also include passenger bus drivers or conductors and jeepney drivers or operators for arrogance, discourtesy, overcharging, fast/reckless driving, and similar acts.
- The circular targets operator liability for driver violations under the theory of respondent superior to prevent impunity after apprehension and fines.
Core operator obligations and driver standards
- Public utility transport operators must strictly provide safe and adequate service and must not refuse such service when reasonably demanded.
- Operators must employ drivers, conductors, agents, and inspectors who are courteous and of good moral character.
- Operators must employ drivers with no conviction of any crime involving moral turpitude and physical injuries.
- Drivers must be holders of Professional Drivers Licenses duly issued by the Land Transportation Office (LTO).
Respondent superior—operator deemed liable
- Under the doctrine of respondent superior, violations of transport public utility laws, rules, and regulations by drivers of public utility vehicles are treated as violations by the registered operators of those vehicles.
- The operator’s liability under respondent superior applies regardless of who the driver is for purposes of the operator penalties imposed by the LTFRB.
Complaint adjudication and LTFRB coordination
- Complaints for the enumerated driver violations are adjudicated by the Land Transportation Office (LTO).
- The LTFRB must be furnished by the LTO with lists of litigated cases and their corresponding fines/penalties on drivers.
- The lists from the LTO must indicate the nature of the offense, the identity of the unit involved, and the operator concerned.
- Based on the LTO-provided lists, the LTFRB must impose fines/penalties on the operator corresponding to the driver violations.
LTFRB penalties on operators by offense count
- The LTFRB imposes the operator penalties based on the offense count (first to fourth offense) regardless of who the driver is.
- First Offense: the operator receives a warning.
- Second Offense: the operator receives a stern warning or a fine of PHP 10,000.00 with confiscation of the unit involved; the operator must pay the fine within five (5) days from receipt of the Order thereof.
- If the operator fails to pay the PHP 10,000.00 fine within five (5) days, the confiscation consequence applies unless a fine was already imposed by the LTO in accordance with the Public Service Law.
- Third Offense: the operator faces six (6) months suspension of the entire Certificate of Public Convenience, with confiscation of plates; the plates must be returned after the suspension period has been served.
- Fourth Offense: the operator faces cancellation of the entire Certificate of Public Convenience.
Interaction with LTO franchise violations authority
- The LTO’s authority to adjudicate franchise violations mentioned in the circular is without prejudice to the LTFRB’s power to conduct its own investigation.
- The LTFRB may issue summons and other processes if warranted by its own investigation.