Constitutional Policy and Intent
- Section 2 anchors the Act on Article XIV of the 1987 Constitution, including the State’s duty to protect and promote quality education and make it accessible.
- Section 2 directs the State to establish and maintain a system of scholarship grants, student loan programs, subsidies, and other incentives for deserving students in both public and private schools.
- Section 2 requires the establishment of a mechanism ensuring the mandatory grant of a student fare discount privilege.
- Section 2 enlists cooperation of public transportation utilities to extend assistance to students as a social responsibility.
- Section 2 encourages students, particularly the poor and underprivileged, to pursue quality education and become responsible citizens.
Key Definitions
- Section 3(a) defines “Student” as any Filipino citizen currently enrolled in a duly authorized elementary, secondary, technical-vocational, or higher education institution.
- Section 3(a) excludes from “Student” those enrolled in post graduate degree courses and informal short-term courses such as dancing, swimming, music, and driving lessons, and seminar-type courses.
- Section 3(b) defines “Public transportation utilities” as all Philippine common carriers engaged in carrying or transporting passengers or goods by land, sea/water, or air for compensation, offering services to the public.
- Section 3(c) defines “Public transportation utility operator” as the person or entity granted with a Certificate of Public Convenience by a regulatory agency to operate as a common carrier.
Scope: Covered Services and Time
- Section 4 covers all public transportation utilities including, but not limited to: public utility buses (PUBs), public utility jeepneys (PUJs), taxis and other similar vehicles-for-hire, tricycles, passenger trains, aircrafts, and marine vessels.
- Section 4 excludes school service, shuttle service, tourist service, and any similar service covered by contract or charter agreement with a valid franchise or permit from the Land Transportation Franchising and Regulatory Board (LTFRB).
- Section 4 provides that the fare discount is available during the entire period the student is enrolled, including weekends and holidays.
- Section 4 grants students an option during promotional fares: if a promotional fare approved by the concerned regulatory agency is granted, students may choose between the promotional fare and the regular fare less the discount under the Act.
Student Fare Discount Privilege
- Section 5 entitles a covered student to a twenty percent (20%) discount on domestic regular fares.
- Section 5 requires personal presentation of the student’s duly issued school identification card (ID) or current validated enrollment form.
- Section 5 requires support by the prescribed government-issued identification document.
- Section 5 subjects the privilege to an appropriate verification mechanism to be provided in the Implementing Rules and Regulations (IRR).
- Section 5 limits air transportation discounts: for air public transportation utilities, the discount applies only to the base fare or the price of the ticket before taxes and the costs for ancillary services.
No Double Discounts
- Section 6 prohibits claiming the Act’s privileges if the student claims a higher discount granted by the public transportation utility or under other existing laws.
- Section 6 prohibits claiming the Act’s privileges in a way that combines them with other discount programs or incentives.
Tax Deduction for Discounted Fares
- Section 7 authorizes the public transportation utility operator to claim as a tax deduction the student fare discount granted based on the cost of the services rendered.
- Section 7 allows the discount cost as a deduction from gross income for the same taxable year when the discount is granted.
- Section 7 requires that the total amount of the tax deduction net of value-added tax, if applicable, be included in gross sales receipts for tax purposes.
- Section 7 requires proper documentation and compliance with the National Internal Revenue Code, as amended.
Additional Relief for Operators and Drivers
- Section 8 instructs that, despite the foregoing provisions, the appropriate government agencies may determine and provide under the IRR other alternative relief or support.
- Section 8 authorizes reduction or exemption from some regulatory fees and charges to mitigate the impact of the discount.
- Section 8 extends additional relief to benefit public transportation utility operators, including drivers.
Complaint Procedure and Filing Authorities
- Section 9 authorizes a student refused the fare discount to file a complaint for enforcement of the privilege.
- Section 9(a) directs that complaints against land public transportation utilities, except tricycles, be filed with the LTFRB.
- Section 9(b) directs that complaints against sea/water public transportation utilities be filed with the Maritime Industry Authority (MARINA).
- Section 9(c) directs that complaints against air public transportation utilities be filed with the Civil Aeronautics Board (CAB).
- Section 9(d) directs that complaints against rail public transportation facilities (including Manila Light Rail Transit System, Manila Metro Rail Transit System, and Philippine National Railway System) be filed with the Legal Service of the Department of Transportation (DOTr).
- Section 9(e) directs that complaints against tricycles be filed with the Office of the Local Chief Executive of the local government unit concerned.
- Section 9 authorizes these agencies and offices to impose the penalties under Section 10 against utilities that refuse or fail to grant the student fare discount privilege.
Penalties for Refusal or Failure
- Section 10 mandates that penalties apply after due investigation and after finding the complaint true and valid.
- Section 10(a) (Land public transportation, including tricycles) penalizes the driver by suspending the driver’s license:
- One (1) month for the first offense;
- Two (2) months for the second offense;
- Three (3) months for the third offense;
- Three (3) months plus a fine of PHP 1,000.00 for each subsequent offense.
- Section 10(a) (Land public transportation, including tricycles) penalizes the owner or operator with graduated fines and sanctions:
- PHP 5,000.00 for the first offense;
- PHP 10,000.00 and impounding of unit for 30 days for the second offense;
- PHP 15,000.00 and cancellation of Certificate of Public Convenience (CPC) for the third and subsequent offenses.
- Section 10(b) (Sea/water public transportation) imposes fines on the owner or operator:
- PHP 5,000.00 for the first offense;
- PHP 10,000.00 for the second offense;
- PHP 20,000.00 for the third offense;
- Additional increments of PHP 10,000.00 on top of the fine for the third offense for each subsequent offense.
- Section 10(c) (Air public transportation) imposes:
- PHP 50,000.00 fine for the first offense;
- PHP 100,000.00 fine and a warning for the second offense;
- PHP 150,000.00 fine and other sanctions as may be determined by CAB for the third and subsequent offenses.
- Section 10(d) (Rail public transportation) requires all rail public transportation utilities to:
- Observe the student fare discount privilege; and
- Designate a student/senior citizen fare booth in boarding stations.
- Section 10(d) states that rail violations are sanctioned or fined under existing civil service rules, and for privately-operated rail the fines prescribed under Section 10(b) apply, to be imposed by the DOTr.
- Section 10(d) allows, after filing an appropriate complaint and after due notice and hearing, proper authorities to cause cancellation or revocation of CPC, permit to operate, franchise, licenses, and other privileges for non-compliant transportation utilities, including for private railways.
- Section 10 establishes that the complaint and penalty processes apply to the relevant authorities identified for sea/water, air, and rail categories in Section 9.
Fraud, Falsified IDs, and Misrepresentation
- Section 11 denies any person the student fare discount privilege if the person avails or attempts to avail through:
- falsified identification documents;
- fraud; or
- any form of misrepresentation.
- Section 11 subjects offenders to civil and penal liabilities prescribed by law.
Implementing Rules and Regulations
- Section 12 requires the LTFRB for land transport, MARINA for sea/water transport, CAB for air transport, and the DOTr for rail transport to promulgate the IRR for their sectors.
- Section 12 sets the deadline: IRR must be promulgated within ninety (90) days from effectivity of the Act.
- Section 12 requires the IRR to take into consideration the government central identification platform.
- Section 12 mandates consultation with the Department of the Interior and Local Government, Department of Finance, Bureau of Internal Revenue, Department of Education, Commission on Higher Education, Technical Education and Skills Development Authority, Philippine Statistics Authority, and other concerned government agencies, plus public transportation utility operators and stakeholders.
Separability, Repeal, and Effectivity
- Section 13 provides that if any portion or provision of the Act is declared invalid or unconstitutional, the remaining provisions continue in full force and effect.
- Section 14 repeals or modifies all laws, decrees, executive orders, proclamations, rules and regulations, and other issuances or parts thereof that are inconsistent with the Act.
- Section 15 fixes effectivity at fifteen (15) days after publication in the Official Gazette or in a newspaper of general circulation.