TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE 
S. No. 802
s>eitaic
of the ^-a'-etarp
25 AUG-4 PI :20
RECEiVt u &V
Introduced by Senator Loren Legarda
AN ACT
PROMOTING RESPONSIBLE PUBLIC UTILITY AND CARGO VEHICLE 
OPERATIONS BY STRENGTHENING REGULATORY STANDARDS, ENSURING 
ROAD SAFETY, PROTECTING COMMUTERS AND PEDESTRIANS, UPHOLDING 
THE WELFARE OF PROFESSIONAL DRIVERS, PROVIDING FOR CRIMINAL 
AND CIVIL ACCOUNTABILITY, ESTABLISHING A VICTIM COMPENSATION 
FUND, AND INSTITUTING MEASURES FOR TRANSPARENCY, DATA 
GOVERNANCE, AND FRANCHISE ACCOUNTABILITY
EXPLANATORY NOTE
On Labor Day, May 1, 2025, a devastating crash shattered the holiday calm at 
the Subic-Clark-Tarlac Expressway (SCTEX). A Solid North Transit bus, reportedly 
driven by a fatigued driver who had fallen asleep, slammed into multiple vehicles 
queued at a toll plaza. The violent collision left 10 people dead and 37 injured. Among 
those killed were Philippine Coast Guard officer Dain Janica Alinas and her husband 
Jon-jon. Amid the wreckage, a two-year-old boy, secured in a child seat, was pulled 
out alive. The harrowing loss of his parents, who were en route to Baguio for a short 
vacation, left a nation in mourning.1
On June 19, 2025, a 54-year-old grandfather shielded his two-year-old 
granddaughter as their vehicle was crushed by a falling gantry beam on the North 
Luzon Expressway in Marilao, Bulacan. A trailer truck, exceeding the 4.27-meter height
1 Philippine Star. (2025, May 4). Toddler survives SCTEX tragedy. Retrieved July 17, 2025, from 
https://www.philstar.eom/headlines/2025/05/04/2440341/toddler-survives-sctex-tragedy
1


limit, had collided with the structure, dislodging the beam and triggering a fatal 
rollover. While the grandfather died at the scene, his embrace saved the child's life.2
Just three months earlier, on March 19, 2025, an overheight trailer truck struck 
the same Marilao Interchange Bridge on NLEX, severely damaging the structure and 
causing severe traffic congestion and two weeks of gridlock.3 In April, both a truck 
and a tourist bus ignored warnings and hit the gantry of the newly opened Lazatin 
Flyover in Pampanga, despite clear signs and traffic aides restricting access to light 
vehicles.4 Later that month, a runaway trailer truck in Marikina killed three people and 
injured ten after losing its brakes on an incline.5 In June, six GV Florida buses were 
filmed racing along a national highway in Isabela, prompting the suspension of drivers 
and units.6 Most recently, on July 16, 2025, two trucks figured in consecutive crashes 
at the EDSA-Quezon Avenue flyover, one after the driver fell asleep and hit 14 barriers, 
the other rear-ending a motorcycle carrier 30 minutes later—causing injuries and 
heavy traffic.7
These are only a handful of the deadly incidents that managed to make the 
news, stories captured by TV cameras or written into headlines across Mega Manila 
and its arterial roads. But behind these few documented cases lie many more that 
never made it past a local police blotter. The damage spans far beyond mangled 
vehicles and cracked cement. Lives lost, families shattered, children orphaned. Public 
infrastructure—bridges, flyovers, toll plazas—left in ruins, repaired at taxpayers'
2 Manabat, J. (2025, June 19). Grandpa who died in NLEX Mariiao incident saved 2-year-oid. Retrieved 
July 17, 2025, from https://www.abs-cbn.com/news/nation/2025/6/19/grandpa-who-died-in-nlex- 
marilao-incident-saved-2-year-old-1917
3 GMA Integrated News. (2025, March 20). Heavy traffic in NLEX after truck damages Mariiao 
interchange bridge. Retrieved July 17, 2025, from
https://www.gmanetwork.com/news/serbisyopubliko/transportation/939989/heavy-traffic-in-nlex-
after-truck-damages-marilao-interchange-bridge/story/
4 SunStar Pampanga. (n.d.). Bus, truck hit vertical barrier of CSF flyover. Retrieved July 17, 2025, 
from https://www.sunstar.com.ph/pampanga/local-news/bus-truck-hit-vertical-barrier-of-csf-flyover
5 Philippine Star. (2025, April 25). 6-vehide crash leaves 3 dead, 10 hurt in Marikina. Retrieved July 
17, 2025, from https://www.philstar.eom/nation/2025/04/25/2438169/6-vehicle-crash-leaves-3-dead- 
10-hurt-marikina
Sources
6 Ferrer, V. A. (2025, June 10). 15 GV Florida Transport buses suspended over virai racing video. GMA 
Integrated News. Retrieved July 17, 2025, from
https://www.gmanetwork.com/news/topstories/nation/948946/15-gv-florida-transport-buses- 
suspended -over-vi ral-raci ng -video/story/
7 Manila Bulletin. (2025, July 16). 2 hurt in back-to-back truck accidents on EDSA flyover. Retrieved 
July 17,2025, from https://www.mb.com.ph/2025/07/16/2-hurt-in-back-to-back-truck-accidents-on- 
edsa-flyover


expense. Each crash a symbol of our collective failure to rein in negligence and enforce 
accountability.
When will it end? When will we finally draw the line and say that on our roads, 
irresponsibility is no longer tolerable, not from drivers, not from operators, not from 
those entrusted with public safety?
According to the Philippine Statistics Authority, 2023 saw 13,125 deaths due to 
land transport accidents—the highest in 14 years, and a 56.14% surge compared to 
2010. The numbers tell a grim story: nearly two in every hundred deaths in the country 
are now road-related. Young adults aged 20 to 24 consistently recorded the highest 
number of deaths due to land transport accidents from 2010 to 2023, accounting for 
12.4 percent to 13.9 percent of deaths each year. In 2023, nearly a third of all 
fatalities from land transport accidents were young men aged 20 to 34, a demographic 
disproportionately affected by road crashes. Similar trends were seen in earlier years.8 
Let's be clear, not all these deaths are caused by PUVs or cargo trucks. Nevertheless, 
given their size and frequency, they are behind many of the deadliest and most 
destructive road crashes, making stricter oversight and shared accountability essential.
Often in tragedies involving PUVs or cargo trucks, drivers are the first to be 
taken into custody, named as the directly liable party. But if we truly want to prevent 
the next fatal crash, we must look beyond individual negligence. Why do these 
incidents recur, year after year? Drivers are already saturated with regulation, from 
licensing requirements and periodic medical clearances to daily enforcement of traffic 
infractions. Yet the accidents persist, because oversight rarely reaches the other actors 
behind the scenes: the government agencies, operators, dispatchers, and inspection 
centers that influence driver behavior and safety conditions.
Accountability must be broadened. While we pursue reforms within the Land 
Transportation Office (LTO), particularly in accrediting professional drivers and 
evaluating their fitness to operate heavy vehicles, we must also hold to account the 
inspection centers that routinely clear unroadworthy units, and more critically, the 
fleet operators and corporate owners who profit while cutting corners on safety.
8 Philippine Statistics Authority. (2025, May 7). Land transport accidents account for 1.9 percent of 
deaths in the country, highest number of deaths recorded in 2023 (Reference No. 2025-177) [Press 
release]. Retrieved July 17, 2025, from https://psa.gov.ph/content/land-transport-acddents-account- 
19-percent-deaths-country-highest-number-deaths-recorded


When death or injury is inflicted on passengers, pedestrians, or other road 
users, liability must be direct and unavoidable, not concealed behind layers of 
corporate insulation. Equally urgent is the reform of our justice system, which often 
leaves victims' families with no option but to accept token settlements or "blood 
money" due to the high costs, delays, and intimidation in pursuing legal redress.
We must also confront the exploitative conditions under which many drivers, 
especially those of PUVs, are forced to operate. The prevailing "boundary system", 
which rewards speed and trip volume at the expense of caution, must end. These 
drivers are not low-skilled workers. They are trained professionals entrusted with lives 
and machinery, making high-stakes decisions under pressure. We cannot demand 
safety from them while depriving them of humane schedules, living wages, and proper 
support.
It must also be emphasized that the law imposes a duty of extraordinary 
diligence upon common carriers—not solely upon the individual driver, but upon the 
entire enterprise of public conveyance. This heightened standard of care is not 
confined to the act of driving, nor should it fall squarely on the shoulders of the driver 
alone. The obligation extends to the operator, the company, the dispatchers, and all 
those who manage, maintain, and profit from the transport system.
Moreover, this duty of extraordinary diligence is owed not just to passengers, 
but to all road users—pedestrians, commuters, and fellow motorists alike. When a 
cargo truck plows into a bridge, or a bus careens into a family car, the law does not 
distinguish whether the victims had a ticket in hand. The responsibility to prevent 
harm rests with all those involved in the chain of operations. Any meaningful reform 
must reflect this broader scope of legal and moral duty.
This proposed measure, the Responsible Public Utility and Cargo Vehicle 
Operators Act, establishes a comprehensive legal framework that redefines 
accountability in road safety—going beyond the punishment of individual drivers.
First, the bill imposes strict civil and administrative liability on operators when 
death, serious injury, or major property damage results from the operation of their 
PUVs or cargo trucks. This reflects the reality that many acts of negligence are 
systemic—rooted in poor maintenance, unreasonable dispatch demands, or the 
deployment of undertrained, overfatigued drivers.


Second, the bill creates a Public Utility Victims Compensation Fund to assist 
families of victims, funded by operator license fees and penalties.
Third, the bill mandates a shift from the quota-based or "boundary" 
compensation model to a salary-based employment system for drivers. Especially for 
fixed-route and inter-regional PUVs and trucks, operators must provide formal 
contracts with wages not less than 150% of the prevailing regional minimum. This 
recognizes the skill and risk involved in their work and aims to improve safety by 
removing incentives for reckless driving.
Moreover, the bill strengthens LTO and DOTr oversight. It mandates the 
publication of performance data from accredited inspection centers and enforces joint 
liability for those who repeatedly pass unsafe units. Centers found grossly negligent 
may be suspended or blacklisted.
Finally, the measure ensures access to justice by mandating the Supreme Court 
to adopt streamlined procedures for civil claims involving PUV and truck-related 
deaths. This responds to the long-standing problem where families, overwhelmed by 
grief and poverty, are forced into silence.
This bill recognizes that road safety cannot rely solely on driver discipline. It is 
about systems, structures, and shared responsibility. By holding government agents, 
operators and inspection providers to account, dignifying the work of drivers, and 
strengthening victim support, this measure aims to prevent tragedies, not just punish 
them after the fact.
In view of the foregoing, the urgent passage of this bill is earnestly sought.
LOREN LEGARDA


TWENTIETH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
SENATE
s. No. 802
f|i 
a
Cftbf .€>nrmi7
25 AUG-4 PI *20
RECEIVED BV
Introduced by Senator Loren Legarda
AN ACT
PROMOTING RESPONSIBLE PUBLIC UTILITY AND CARGO VEHICLE 
OPERATIONS BY STRENGTHENING REGULATORY STANDARDS, ENSURING 
ROAD SAFETY, PROTECTING COMMUTERS AND PEDESTRIANS, UPHOLDING 
THE WELFARE OF PROFESSIONAL DRIVERS, PROVIDING FOR CRIMINAL 
AND CIVIL ACCOUNTABILITY, ESTABLISHING A VICTIM COMPENSATION 
FUND, AND INSTITUTING MEASURES FOR TRANSPARENCY, DATA 
GOVERNANCE, AND FRANCHISE ACCOUNTABILITY
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
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ARTICLE I
GENERAL PROVISIONS
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Section 1. Short Title. - This Act shall be known as the "Responsible Public
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Utility and Cargo Vehicle Operators Act."
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Sec. 2. Declaration of Policy. - It is the policy of the State to promote
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responsible public utility and cargo vehicle operations by ensuring the safety of roads,
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protecting the lives of commuters, pedestrians, and road users, and upholding the
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rights and welfare of professional drivers. To this end, the State shall strengthen the
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regulation of public utility vehicles (PUVs), cargo trucks, and their operators through
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improved safety standards, labor protections, transparent governance, and clear
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accountability mechanisms in both public and private transport operations.
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Sec. 3. Definition of Terms. - For purposes of this Act, the following terms are
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hereby defined:


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(a) Public Utility Vehicle (PUV) refers to a motor vehicle duly registered and 
authorized by the Land Transportation Franchising and Regulatory Board 
(LTFRB) or any other appropriate agency to transport passengers for 
compensation. This includes, but is not limited to, jeepneys, buses, taxis, 
UV Express vans, and other similar vehicles used for public conveyance;
(b) Cargo Truck refers to any motor vehicle primarily designed or used for 
the transportation of goods, commodities, materials, or freight, including 
dump trucks, delivery trucks, tanker trucks, and quarry trucks, whether 
privately owned or operated for hire;
(c) 
Operator refers to the registered owner, franchise holder, or any juridical 
person, cooperative, or entity that manages, controls, or is legally 
responsible for the operation of a public utility vehicle or cargo truck;
(d) Driverrefers to any natural person who operates or is in control of a PUV 
or cargo truck, whether employed, contracted, or otherwise engaged by 
the operator;
(e) Boundary or Quota-Based Compensation System refers to any scheme 
under which a driver's compensation is based on the amount collected, 
distance driven, or passenger volume, rather than on a fixed wage or 
time-based compensation, resulting in the absence of statutory benefits;
(f) 
Roadworthiness Inspection refers to the mandatory annual technical 
assessment of a vehicle's mechanical and safety condition, including but 
not limited to brakes, tires, emissions compliance, safety devices, and 
the functionality of speed governors or limiters;
(g) Serious Physical Injury shall have the same meaning as provided in 
Article 263 of the Revised Penal Code, as amended, and includes any 
injury resulting in permanent disability, loss of limb or organ, or 
extended incapacity to engage in normal activity or livelihood;
(h) Negligent Operation of a Public Utility or Cargo Vehicle refers to the act 
of operating such vehicle in violation of safety laws, traffic rules, 
mandated work hours, or roadworthiness standards, which results in 
death, injury, or significant damage;


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(i) 
Gross Negligence refers to the want of even slight care, showing 
recklessness or a willful disregard of duty, which foreseeably results in 
grave harm or loss to others;
(j) 
Extraordinary Diligence refers to the highest degree of care and foresight 
required of common carriers under Article 1755 of the Civil Code, which 
obligates them to carry passengers safely to their destination using all 
human care and foresight reasonably available;
(k) Major Safety Violation refers to a violation of this Act or related 
regulations that results in death, serious physical injury, substantial 
public property damage, or involves falsification or manipulation of 
official inspection records or operating documents;
(l) 
Franchise refers to the privilege granted by the LTFRB or other 
regulatory agencies to operate a public utility vehicle or cargo service for 
compensation;
(m) Public Utility Victim Compensation Fund refers to the financial assistance 
facility established under this Act to provide monetary relief to victims or 
their families in cases of accidents caused by PUVs or cargo trucks, 
particularly when the liable party is unknown or unable to pay;
(n) Rest Period refers to a continuous and uninterrupted period during which 
the driver is not required to perform work, in compliance with the 
prescribed rest hours under this Act and other labor standards;
(o) Digital Registry refers to the publicly accessible and regularly updated 
online database maintained by the Land Transportation Office (LTO), 
containing records of registered PUVs and cargo trucks, operator 
identities, and compliance histories;
(p) Victim refers to any person who suffers death, serious physical injury, or 
substantial property damage as a result of an accident involving a public 
utility vehicle or cargo truck, including but not limited to passengers, 
pedestrians, bystanders, motorists, cyclists, and other road users; and
(q) Third Party refers to any person who is not a passenger or operator of 
a public utility vehicle or cargo truck but is affected by its operation or 
involved in an accident resulting from its use.


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ARTICLE II
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STANDARDS FOR ROADWORTHY OPERATIONS AND TRAFFIC SAFETY
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Sec. 4. Annual Roadworthiness Inspection. - PUVs and cargo trucks shall
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undergo comprehensive annual inspections, including brake testing, emission
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compliance, and verification of speed governor/ limiter functionality. Annual
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Roadworthiness Inspections shall be a requirement for the annual registration of the
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PUV or cargo trucks.
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Sec. 5. Road Stoppage Penalty. - No public utility vehicle or cargo truck shall
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remain idle or stationary on any public road, highway, or thoroughfare due to
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mechanical failure or other preventable causes that obstruct traffic or pose a safety
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risk. The Land Transportation Office (LTO) shall review the rules and guidelines for
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the immediate handling, towing, and penalization of such stoppages along national
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roads and highways. Local government units (LGUs) are likewise encouraged to enact
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ordinances prescribing localized penalties, removal protocols, and impoundment
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procedures for stoppages occurring on city, municipal, or barangay roads within their
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respective jurisdictions.
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ARTICLE III
DRIVER WELFARE AND WORKING CONDITIONS
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Sec. 6. Regularization and Professional Fees. - All operators, cooperatives, and
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public utility vehicle (PUV) companies shall provide their drivers with formal
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employment contracts and ensure the payment of just and reasonable wages in
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accordance with law.
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The Regional Tripartite Wages and Productivity Board (RTWPB), in consultation
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with the Department of Labor and Employment (DOLE), Department of Transportation
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(DOTr), and relevant industry stakeholders, shall determine the minimum wage
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standard for professional drivers in the public transport and cargo sector, taking into
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account:
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(a) the cost of living in the region;
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(b) the nature and risk of the occupation.


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(c) professional and skilled status of drivers,
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(d) productivity and profitability levels of PUV and cargo operators; and
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(e) prevailing social protection standards.
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In no case, however, shall the wage fall below one hundred fifty percent
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(150%) of the prevailing minimum wage in the region, subject to periodic review and
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gradual phase-in mechanisms as may be set forth in the implementing rules and
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regulations (IRR) for micro or small-scale operators with demonstrated financial
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limitations.
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Phased implementation may be granted to operators managing fewer than five
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(5) vehicles, subject to submission of proof of financial incapacity, as determined in
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accordance with the rules and guidelines to be issued.
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Within six (6) months from the effectivity of this Act, DOLE and RTWPBs shall
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conduct wage impact studies and issue regional guidelines on professional driver
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wages
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Sec. 7. Prohibition on Commission-Based or Boundary-Based Compensation
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Schemes. - No public utility vehicle or cargo truck driver shall be compensated based
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on a boundary, commission, percentage, or any other quota-based earning system
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that depends on the volume of passengers, distance driven, or total collections made
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during the workday.
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All operators, cooperatives, or companies shall be required to adopt fixed, time-
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based compensation schemes aligned with wage and occupational safety standards,
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as provided under this Act and applicable labor laws.
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The Department of Labor and Employment (DOLE), in coordination with the
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Department of Transportation (DOTr), shall issue the necessary guidelines and
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enforcement mechanisms to ensure compliance with this provision, including penalties
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for non-compliant operators or employers.
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Sec. 8. Work Hour Limitations. - No driver shall be required or allowed to
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operate a truck or PUV for more than ten (10) hours in a 24-hour period. A continuous
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rest period of at least eight (8) hours per day shall be provided by the employer.
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ARTICLE IV
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CRIMINAL ACCOUNTABILITY AND VICTIM COMPENSATION


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Sec. 9. Nature of the Offense and Non-CompromisabiUty. - The crime of
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Negligent Operation of a Public Utility or Cargo Vehicle Resulting in Death or Injury,
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or Damage to Public Property, as defined in this Act, shall be classified as an offense
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against public safety and public interest. It shall be prosecuted by the State motu
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proprio, regardless of the existence, absence, or withdrawal of a private complainant.
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Negligence Resulting in Death or Serious Injury shall not be subject to amicable
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settlement, compromise, or desistance by the victim or the victim's family.
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Sec. 10. Death or Serious Injury Arising from Negligent Operation of a Public
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Utility Vehicle or Cargo Truck. - Any person who, by reason of negligence, disregard
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of road safety regulations, or violation of mandatory driving limitations, causes the
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death of or serious physical injury to any person, whether a passenger, pedestrian, or
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third party, while operating a public utility vehicle or cargo truck, shall be guilty of the
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crime of Negligent Operation of a Public Utility or Cargo Vehicle Resulting in Death or
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Injury, and shall be punished as follows:
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(a) If the act results in serious physical injuries, the penalty shall be:
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1. Prision mayor in its medium period (8 years and 1 day to 10 years);
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and
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2. A criminal fine of not less than Five Hundred Thousand Pesos
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(P500,000.00).
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(b) If the act results in death, the penalty shall be:
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1. Reclusion temporal in its maximum period (17 years, 4 months and
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1 day to 20 years); and
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2. A criminal fine of not less than One Million Pesos (P1,000,000.00).
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(c) If it is proven that the driver was under the influence of alcohol or illegal
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drugs at the time of the accident, the penalty shall be imposed in its
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maximum period, and the criminal fine shall be increased by Fifty Percent
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(50%); and
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(d) In all cases, the operator, franchise holder, or registered cooperative
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shall be jointly and severally liable with the driver for the payment of
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fines.
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No criminal or civil liability shall attach under this Act to the driver or operator
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of a public utility vehicle or cargo truck when it is established, after due investigation


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and hearing, that the proximate cause of the death or serious injury was the unlawful,
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reckless, or grossly negligent act of the deceased or injured party, and that the driver
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exercised all necessary precautions and the standard of extraordinary diligence as
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required by law.
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Sec. 11. Civil Damages for Negligence Resulting in Death. - In cases of death
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arising from vehicular accidents involving public utility vehicles or cargo trucks due to
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the fault or negligence of the driver or operator, whether the deceased is a passenger,
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pedestrian, or other third party, the judicial computation of civil damages shall, as a
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minimum, begin with the following amounts, exclusive of loss of earning capacity,
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moral damages, and other applicable damages under the Civil Code:
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(a) In cases of simple negligence, Five Hundred Thousand Pesos
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(P500,000.00); and
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(b) In cases of gross negligence, One Million Pesos (P1,000,000.00).
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In determining civil liability under this Act, courts shall consider the contributory
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or sole negligence of the deceased or injured party, which may proportionally reduce
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or extinguish any award of damages.
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Sec. 12. Vicarious Liability of Operators. - Without prejudice to the provisions
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of Articles 1733 to 1766 and Article 2180 of Republic Act No. 386, otherwise known
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as the Civil Code of the Philippines, the owner, operator, franchise holder, or registered
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cooperative of a public utility vehicle or cargo truck shall be held jointly and severally
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liable with the driver for any death, serious physical injury, or substantial damage to
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persons or property arising from a vehicular accident or negligent act occurring in the
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course of the vehicle's operation, whether the victim is a passenger, pedestrian, or
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third party.
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Such liability shall apply regardless of whether the employee acted within the
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scope of their authority or in violation of the operator's instructions. The defense of
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having exercised the diligence of a good father of a family in the selection and
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supervision of employees shall not exempt the operator from liability.
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To avoid liability for non-compensatory damages, such as moral or exemplary
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damages, the operator must prove that extraordinary diligence was exercised not only
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in the hiring and supervision of drivers but also in the maintenance of vehicles,
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enforcement of rest periods, and compliance with roadworthiness, safety, and


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operational standards—consistent with the degree of care required under Articles 1733
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and 1755 of the Civil Code.
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Sec. 13. Summary Civil Proceedings for Victims of Road Accidents. - The
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Supreme Court, within six (6) months from the effectivity of this Act, shall adopt
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simplified and expeditious procedures for the resolution of civil claims arising from
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road accidents involving public utility vehicles or cargo trucks that result in death or
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serious physical injury to passengers, pedestrians, or third parties.
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Such procedures shall aim to provide accessible, affordable, and prompt
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remedies, taking into account the urgent medical or burial needs of victims and the
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financial burden on surviving family members.
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The simplified procedure shall allow for summary determination of liability and
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compensation, and may be incorporated into existing special rules or issued as a
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separate set of guidelines.
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Sec. 14. State Prosecution. - The State shall take all necessary measures to
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preserve, secure, and safeguard all material evidence related to the offenses provided
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in this Act. In cases of death arising from road accidents involving public utility vehicles
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or cargo trucks, the State shall initiate and pursue criminal prosecution motuproprio,
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notwithstanding the absence or withdrawal of a private complainant.
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Sec. 15. Victim Fund. - A Public Utility Victim Compensation Fund shall be
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established under the Department of Transportation (DOTr) that will be accessible to
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victims or families of fatalities caused by unidentified negligent PUV and cargo drivers,
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including passengers, pedestrians, and third-party road users, victims of road crashes
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involving PUVs and cargo trucks where there is delay or denial in compensation,
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whether the driver is identified or not. Contributions shall be sourced from operator
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license fees and penalties.
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The DOTr shall promulgate the necessary rules and guidelines to ensure the
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accessibility, equitable distribution, and timely release of financial assistance under
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the Public Utility Victim Compensation Fund. Such rules shall establish reasonable
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criteria for eligibility, documentary requirements, and procedures that are responsive
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to the urgent needs of victims or their surviving families, particularly in cases involving
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death or serious physical injury.


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Provided, That no compensation shall be awarded under this Fund in cases
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where, after due determination, the deceased or injured party is found to be the
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proximate and sole cause of the incident due to unlawful or grossly negligent conduct.
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Sec. 16. Destruction of Public Property. - Any public utility vehicle or cargo
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truck that causes damage to government property shall be subject to a monetary
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penalty equivalent to five (5) times the assessed value of the damage for the first
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offense, and ten (10) times the assessed value for each succeeding offense.
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The Department of Public Works and Highways (DPWH) or the local engineering
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office, as appropriate, shall conduct a formal assessment of the damaged property
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based on proper and sufficient technical guidelines.
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The Department of Transportation (DOTr), in coordination with DPWH and the
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Department of the Interior and Local Government (DILG), shall issue the implementing
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rules and procedures to ensure uniformity, transparency, and due process in the
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valuation, enforcement, and collection of such penalties.
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Sec. 17. Penalty for Falsification or Manipulation of Annual Roadworthiness
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Inspection Results. - Any person who, directly or indirectly, engages in the
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falsification, manipulation, or fraudulent issuance of roadworthiness inspection results
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required under this Act shall be penalized as follows:
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(a) If the person is the owner or operator of the vehicle, a fine of not less than
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Two Hundred Fifty Thousand Pesos (P250,000.00) shall be imposed, and the
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vehicle's registration shall be suspended for one (1) year. Repeat offenders
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shall be subject to permanent revocation of vehicle registration and
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disqualification from operating PUVs or cargo trucks.
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(b) If the person is an employee, officer, or owner of an accredited inspection
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center, or a government official or employee, found to have issued, approved,
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or assisted in the falsification of inspection results, the penalty shall be:
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1. Imprisonment of not less than four (4) years but not more than six (6)
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years,
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2. A fine of not less than Five Hundred Thousand Pesos (P500,000.00), and
30 
3. Perpetual disqualification from holding public office or operating a
31 
vehicle inspection center.


1 
In all cases, the fraudulent inspection certificate shall be considered null
2 
and void, and any vehicle operating based on such shall be subject to
3 
immediate impoundment.
4 
Sec. 18. Penalties for Violation of the Prohibition on Boundary-Based
5 
Compensation. - Any operator, franchise holder, cooperative, or company found to
6 
have engaged in or continued the implementation of a boundary, commission, or other
7 
quota-based compensation scheme in violation of Section 6 of this Act shall be subject
8 
to the following penalties:
9 
(a) For the first offense - a fine of not less than One Hundred Thousand
10 
Pesos (P100,000.00) per affected driver and an order to regularize the
11 
driver within thirty (30) days.
12 
(b) For the second offense - a fine of not less than Two Hundred Fifty
13 
Thousand Pesos (P250,000.00) per affected driver and a suspension of
14 
franchise or operating permit for a period not exceeding sixty (60) days.
15 
(c) For the third and succeeding offenses - a fine of not less than Five
16 
Hundred Thousand Pesos (P500,000.00) per affected driver and
17 
permanent disqualification from renewing, holding, or transferring a
18 
franchise or operating permit for any public utility vehicle or cargo truck.
19 
Sec. 19. Due Process in the Imposition of Penalties. - Penalties under this Act
20 
shall be imposed only after prior notice, hearing, and determination by the Land
21 
Transportation Franchising and Regulatory Board (LTFRB) or the appropriate
22 
regulatory agency.
23 
Sec. 20. Franchise Accountability. - Operators with three (3) or more major
24 
safety violations within five (5) years may have their franchise suspended or revoked,
25 
subject to due process.
26 
Operators, companies, or cooperatives whose units are repeatedly involved in
27 
fatal or injurious accidents, or found to have systematically failed safety inspections,
28 
may be blacklisted from applying for new franchises, routes, or vehicle registrations
29 
for a period of up to five (5) years. This blacklist shall extend to their responsible
30 
officers, directors, or board members who exercised control or supervision during the
31 
period of violation. The Department of Transportation (DOTr), in coordination with the
32 
LTFRB and LTO, shall maintain and publish a national blacklist of such entities and
10


1 
individuals to ensure transparency and prevent circumvention through shell entities or
2 
rebranding.
3 
ARTICLE V
4 
PUBLIC DISCLOSURE
5 
Sec. 21. Digital Registry. - The Land Transportation Office (LTO) shall maintain
6 
and regularly update a publicly accessible digital registry containing information on
7 
registered public utility vehicles (PUVs), buses, and cargo trucks, including their plate
8 
numbers, vehicle type, franchise validity, inspection results, records of violations, and
9 
the names and addresses of registered owners and operators. The publication and
10 
access to such data shall be subject to applicable data privacy laws, ensuring
11 
appropriate safeguards and limitations are in place.
12
13
ARTICLE VI
MISCELLANEOUS PROVISIONS
14 
Sec. 22. Transitory Provision on Wage Implementation. - To minimize
15 
disruption to the transport industry and ensure orderly transition, the Department of
16 
Labor and Employment (DOLE), in coordination with the Department of Transportation
17 
(DOTr), may implement the wage-related provisions under Sections 6 and 7 of this
18 
Act in a staggered manner, taking into account the operational scale, financial
19 
capacity, and employment impact on micro and small operators.
20 
Sec. 23. Appropriations. - The amount necessary to implement this Act shall
21 
be included in the annual General Appropriations Act under the budgets of the
22 
Department of Transportation (DOTr), the Land Transportation Office (LTO), the Land
23 
Transportation Franchising and Regulatory Board (LTFRB), and the Department of
24 
Labor and Employment (DOLE), as applicable.
25 
Sec. 24. Implementing Agencies. - The DOTR, LTO, LTFRB, and LGUs shall
26 
issue the necessary rules and regulations to implement this Act within ninety (90) days
27 
from its effectivity.
11


1 
Sec. 25. Monitoring andEvaiuation. -The DOTr shall submit an annual report
2 
to Congress on the implementation of this Act, including statistics on road accidents
3 
involving PUVs and cargo trucks, enforcement actions taken, wage compliance, use of
4 
the Victim Compensation Fund, and effectiveness of the digital registry.
5 
Sec. 26. Separabiiity Cause. - If any provision of this Act is declared
6 
unconstitutional or invalid, the other provisions not affected thereby shall remain in
7 
full force and effect.
8 
Sec. 27. Repeaiing Cause. - All laws, executive orders, administrative orders,
9 
rules, and regulations inconsistent with this Act are hereby repealed or modified
10 
accordingly.
11 
Sec. 28. Effectivity. - This Act shall take effect fifteen (15) days after its
12 
publication in the Official Gazette or in at least two (2) national newspapers of general
13 
circulation.
Approved,
12