Law Summary
Declaration of Policy
- Constitution mandates the State to protect and promote the right to quality education accessible to all.
- Establishes mechanisms for mandatory student fare discounts.
- Seeks cooperation of public transport utilities to assist students as a social responsibility.
- Encourages underprivileged students to pursue education for a secure future.
Definition of Terms
- "Student": Filipino citizen enrolled in authorized elementary, secondary, technical-vocational, or higher education institutions; excludes postgraduate and informal short-term courses.
- "Public transportation utilities": Common carriers transporting passengers or goods for compensation by land, sea, or air.
- "Public transportation utility operator": Entity/person with a Certificate of Public Convenience (CPC) to operate as a common carrier.
Coverage
- Covers all public transportation types including buses, jeepneys, taxis, tricycles, trains, aircrafts, marine vessels.
- Excludes school service, shuttle, tourist service, and contracted or chartered services with valid LTFRB permits.
- Discounts valid throughout student enrollment, including weekends and holidays.
- Students may choose between promotional fares or discounted regular fares.
Student Fare Discount Privilege
- Twenty percent (20%) discount on domestic regular fares.
- Requires presentation of valid school ID or current enrollment form plus government ID.
- Verification mechanism to be detailed in IRR.
- For air transport, discount applies only to base fare before taxes and ancillary fees.
Prohibition on Availment of Double Discounts
- Students cannot claim discounts if higher discounts exist from other laws or programs.
- Discounts cannot be combined.
Tax Deduction
- Operators may claim the cost of student fare discounts as a tax deduction from gross income.
- Discounts must be properly documented and comply with the National Internal Revenue Code.
Additional Relief or Support for Operators and Drivers
- Government agencies regulating fares may provide alternative relief measures to operators and drivers.
- Examples include reduction or exemption from regulatory fees to mitigate discount impact.
Filing of Complaints
- Students denied discounts may file complaints with:
- LTFRB (land transport except tricycles)
- MARINA (sea/water transport)
- CAB (air transport)
- DOTr Legal Service (rail transport)
- Local government chief executive (tricycles)
- These authorities may impose penalties on violators.
Penalties
- Upon verified complaint, penalties for refusal or failure to grant discount include:
- Land transport drivers: suspension of license escalating from 1 month (1st offense) to 3 months plus fines for subsequent offenses.
- Land transport owners/operators: fines from P5,000 to P15,000; impounding and CPC cancellation for repeated violations.
- Sea/water operators: escalating fines from P5,000 (1st offense) to increments of P10,000 beyond the third offense.
- Air operators: fines from P50,000 (1st offense) to P150,000 plus additional sanctions.
- Rail utilities: must provide designated student fare booths; violations fined under existing civil service rules or similar fines as sea/water operators.
- Cancellation or revocation of CPC, permits, franchises possible upon repeated offenses.
Use of Falsified Identification and Misrepresentation
- Use of fake IDs or fraud to avail discounts will result in denial of privilege and possible civil or criminal liabilities.
Implementing Rules and Regulations (IRR)
- Within 90 days of effectivity, LTFRB, MARINA, CAB, and DOTr must promulgate IRR for their sectors.
- IRR development to involve relevant agencies and stakeholders ensuring proper verification, including use of government ID platforms.
Separability Clause
- If any part of the Act is declared invalid, remaining provisions continue to be effective.
Repealing Clause
- Any inconsistent laws, orders, or rules are repealed or modified to conform with this Act.
Effectivity
- Takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation.