Legal authority and incorporation of rules
- The Circular is issued pursuant to Section 5(K) of Executive Order No. 202 and Section 13(a) of Commonwealth Act No. 146, as amended, which authorize the LTFRB to make and enforce reasonable rules and regulations.
- The Circular also invokes the government policy for public utilities (transportation) to improve their service.
- The Circular expressly provides that the LTFRB rules and regulations are incorporated to every public utility engaged in operating a Land Transportation business.
Policy, purpose, and enforcement thrust
- The Circular mandates stricter compliance with LTFRB regulations due to public demand for enforcement.
- The Circular establishes a structured schedule of fines and escalating penalties tied to specified offenses.
- The Circular provides enforcement mechanisms that include payment requirements, orders to show cause, and confiscation of drivers’ licenses for specified violations.
Main offenses and penalties
- The Circular sets a penalty scheme by grouping offenses and imposing escalating consequences based on first offense, second offense, third offense, and certain fourth and subsequent apprehensions.
- For offenses where the schedule prescribes a suspension of the unit, the Circular provides 60 days suspension for the second offense and cancellation of CPC of unit for the third offense.
- For offenses where the schedule prescribes cash fines, the Circular provides specific amounts for the first offense, and escalating fines for subsequent offenses.
Offenses under Group I (taxicab-related and related acts)
- Operating a taxicab with fast taximeter with special gadget carries penalties of first offense: Php6,000.00; second offense: 60 days suspension of unit; third offense: cancellation of CPC of unit.
- Operating with manipulated taximeter (to make it fast) carries penalties of first offense: Php6,000.00; second offense: 60 days suspension of unit; third offense: cancellation of CPC of unit.
- Painting of fraudulent or unauthorized base of operations (for taxicabs) carries penalties of first offense: Php6,000.00; second offense: 60 days suspension of unit; third offense: cancellation of CPC of unit.
- Operating an unauthorized unit, motors, or plates (i.e., illegal transfer of motor/plate no.) (for taxicabs) carries penalties of first offense: Php6,000.00; second offense: 60 days suspension of unit; third offense: cancellation of CPC of unit.
- Operating without LTFRB taximeter, Triplex seal carries penalties of first offense: Php6,000.00; second offense: 60 days suspension of unit; third offense: cancellation of CPC of unit.
Offenses under Group II (taxicab conduct, fares, drivers, and contracts)
- Operating taxicab with unauthorized taximeter carries escalating penalties of first offense: Php3,000.00; second offense: Php4,000.00; third offense: Php5,000.00.
- Cutting trip carries escalating penalties of first offense: Php3,000.00; second offense: Php4,000.00; third offense: Php5,000.00.
- Overcharging or collecting unauthorized fares or rates carries escalating penalties of first offense: Php3,000.00; second offense: Php4,000.00; third offense: Php5,000.00.
- Employing hostile, arrogant, or discourteous drivers and/or conductors/tress carries escalating penalties of first offense: Php3,000.00; second offense: Php4,000.00; third offense: Php5,000.00.
- Refusal to convey passenger to their destination carries escalating penalties of first offense: Php3,000.00; second offense: Php4,000.00; third offense: Php5,000.00.
- Unauthorized used of trade name carries escalating penalties of first offense: Php3,000.00; second offense: Php4,000.00; third offense: Php5,000.00.
- For operating with an expired CPC the Circular assigns escalating penalties of first offense: Php3,000.00; second offense: Php4,000.00; third offense: Php5,000.00.
- For operating taxicab on contract basis / flagged-up meter the Circular assigns escalating penalties of first offense: Php3,000.00; second offense: Php4,000.00; third offense: Php5,000.00.
- Racing with other vehicles or other forms of reckless driving the Circular assigns escalating penalties of first offense: Php3,000.00; second offense: Php4,000.00; third offense: Php5,000.00.
- Operating defective taximeter or not functioning the Circular assigns escalating penalties of first offense: Php3,000.00; second offense: Php4,000.00; third offense: Php5,000.00.
Offense under Group III (limited to a specific pattern)
- Operating outside authorized lines carries penalties where the schedule provides: third offense: Php2,000.00.
- Operating taximeter seal with wire cut carries penalties where the schedule provides: third offense: Php2,000.00.
Offenses under Group IV (safety, equipment, and documentation)
- Operating vehicle without good and efficient service brakes and without mechanically operated, hand-powered emergency brakes carries penalties of first offense: Php5,000.00; second offense: Php1,000.00; third offense: Php2,000.00.
- Operating unsafe or dilapidated unit or unsightly body carries penalties of first offense: Php5,000.00; second offense: Php1,000.00; third offense: Php2,000.00.
- Not issuing fare tickets carries penalties of first offense: Php5,000.00; second offense: Php1,000.00; third offense: Php2,000.00.
- Excessive emission of smoke and/or emitting smoke of fumes inside vehicles carries penalties of first offense: Php5,000.00; second offense: Php1,000.00; third offense: Php2,000.00.
- Employing drivers and/or conductors/tresses without license carries penalties of first offense: Php5,000.00; second offense: Php1,000.00; third offense: Php2,000.00.
Offenses under Group V (driver/treatment, bus doors, and passenger safety)
- Operating taxicab without driver’s uniform, no seat cover and/or driver’s ID carries penalties of first offense: Php5,000.00; second offense: Php1,000.00; third offense: Php1,500.00.
- Allowing door of buses open/ to be opened while in motion carries penalties of first offense: Php5,000.00; second offense: Php1,000.00; third offense: Php1,500.00.
- Overloading of passengers carries penalties of first offense: Php5,000.00; second offense: Php1,000.00; third offense: Php1,500.00.
- Allowing passenger on stepboard carries penalties of first offense: Php5,000.00; second offense: Php1,000.00; third offense: Php1,500.00.
- For the offense of not installing the required doors in buses, the Circular imposes a fine of Php3,000.00, summary suspension of the operation of the buses involved, and confiscation of the license until the requisite door shall have been installed.
Offenses under Group VI (miscellaneous equipment/markings and related violations)
- For each listed violation in this group—No waybill (TH); No inside marking of plate number; PUJ operated as Cargo Jeep; Operating with broken windshield; Loading cargo on passenger seat; LTFRB sticker not officially posted; No driver’s ID; Driving with slippers; No capacity marking; No head and/or stop light; No name and address of operator painted; No usable spare tire; Smoking while driving; Operating without speedometer or speedometer not functioning; and all other violations not specified—the Circular provides penalties of first offense: Php50.00; second offense: Php75.00; third offense: Php1000.00.
- The Circular imposes penalties for operating unit illegally registered under a “Kabit System” and for using taximeter with fake or unauthorized LTFRB seal through the general provisions on apprehension and escalation under the Circular’s framework.
Escalation rules and show-cause mechanism
- For the fourth and subsequent apprehensions for violation or for any of the offenses in II, IV, V, VI, an Order to Show Cause must be issued requiring the operator to explain why the certificate of public convenience should not be suspended or cancelled.
- The Circular ties escalation to repeat apprehensions, with the show-cause requirement triggering at fourth and subsequent occurrences for covered groups.
Payment, complaints, and driver license actions
- Penalties/fines imposed under the schedule must be paid immediately to the Land Transportation Franchising and Regulatory Board by the operator or the operator’s representative presenting the Order or Authority to register from the LTFRB and/or the operator’s Certificate of Public Convenience (CPC).
- If the operator refuses to pay, the corresponding complaint or order to show cause must be filed or issued forewith and must be given due course.
- The Circular requires confiscation of the driver’s license of the driver of the apprehended unit and forwarding it to the LTO for appropriate action.
- Driver’s license confiscation and the driver-specific suspension/revocation penalties apply only to the listed violations: For operating taxicab with fast meter; Hostile, arrogant, and discourteous driver; Discrimination and/or refusal o convey passengers; Operating with manipulated taximeter (to make it fast).
Driver penalties for specified violations
- For the listed violations affecting drivers—operating taxicab with fast meter; hostile, arrogant, and discourteous driver; discrimination and/or refusal to convey passengers; and operating with manipulated taximeter (to make it fast)—the Circular provides driver license escalation penalties of first offense: 15 days suspension; second offense: 30 days suspension; third offense: revocation of the driver’s license.
Cancellation, supersession, publication, and effectivity
- The Circular cancels and supersedes all prior orders and circulars in conflict with its provisions.
- The Circular remains in force until further Order.
- The Circular takes effect fifteen (15) days after its publication in a Newspaper of general Circulation or in the Official Gazette.
- Three (3) copies of the Circular must be filed with the UP Law Center pursuant to Presidential Memorandum Circular No. 11, dated 09 October 1992.
- The Circular is ordered and adopted under the signature of the Chairman and Board members: THOMPSON C. LANTION, GERARDO A. PINILI, and MA. ELLEN DIRIGE-CABATU.