Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3642

Introduced by Rep. Dennis C, Laogan
Ang Kabuhayan Party-List

AN ACT INSTITUTIONALIZING THE GRANT OF STUDENT FARE
DISCOUNTS IN ALL RAILWAY TRANSPORT SYSTEMS

EXPLANATORY NOTE

Today, three mass transit railway lines (LRT Line-1, LRT Line-2 and MRT Line-3) and a
commuter mainline railway (PNR) traverse Metro Manila. A study! by the JICA-NEDA showed
that in 2012, there were around 1.35 million passengers riding all four train systems on an
average week-day.

However, despite this massive number of train commuters, the students who traverse one
part of NCR to another to travel to and from their school receive no student discount for their use
of our trains, while the same is extended to them in their use of other forms of land
transportation, i.e, buses, vans, jeepneys, ete. This gap is due to the fact that student discounts to
passenger fares for public utility vehicles (PUVs) are not statutorily granted or institutionalized,
nor are they made applicable to our railway transport systems.

Until now, it is only Land Transportation Franchising and Regulatory Board (LTFRB)
Memorandum 2011-004? which serves as the sole basis of the grant of fare discounts to students.
While the institutionalization and expansion of such has been addressed as early as 2005 through
a bill filed by Senator Juan Edgardo “Sonny” Angara, it is important to note that this bill has
remained pending in the committee level ever since. Ten years have passed but nothing has
happened with regard the same.

More than that, while the said LTFRB memorandum is worded to be applicable to PUVs

in general, it is not currently implemented to our train systems, despite their public use, as

' Japan International Cooperation Agency (JICA) & National Economic Development Authority (NEDA),
“Roadmap for Transport Infrastructure Development for Metro Manila and its Surrounding Areas”, March 2014
2011 Revised Terms and Conditions of Certificates of Public Convenience and Providing Penalties for Violations
‘Thereof


LTFRB’s jurisdiction does not extend to them. Indeed, it is the Department of Transportation
(formerly DOTC) which exercises supervision and control over the country’s train systems, as it
operates the MRT-3 and the two LRT lines (through its attached agency, the Light Rail Transit
Authority).

This measure seeks to remedy the gap in the status quo without the added burden and
complexity of institutionalizing in a separate law such grant of student discounts and without
usurping the powers of the LTFRB, as we acknowledge that it has the function to “determine,
prescribe and approve and periodically review and adjust, reasonable fares, rates and other
related charges, relative to the operation of public land transportation services provided by

motorized vehicle’.

With this, the immediate approval of this bill is earnestly sought.

> Executive Order 202, “Creating the Land Transportation Franchising and Regulatory Board”


Card sur

12
13

1S
16
17
18
19
20
21
22
23
24
25
26
27
28
29:

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILL NO,3642

Introduced by Rep. Dennis C. Laogan
Ang Kabuhayan Party-List

AN ACT INSTITUTIONALIZING THE GRANT OF STUDENT FARE DISCOUNTS.
IN ALL RAIL TRANSPORT SYSTEMS

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1, Short Title - This Act shall be known as “The Student Fare Discount for
Trains Act of 2016”.

SECTION 2. Declaration of Policy - The State is mandated to establish and maintain a
system of scholarship grants, student loan programs, subsidies, and other incentives which shall
be available to deserving students in both public and private schools, especially to the
underprivileged, as provided for by Article XIV, Sec. 2, par. 3 of the 1987 Constitution.

In addition, the State seeks to remedy the gap in the status quo wherein public utility
vehicles (PUVs) are directed to grant fare discounts to student passengers through LTFRB
Memorandum 2011-004, but the same is and cannot be made to apply to our train systems as
LTFRB has no jurisdiction over the operation of the said train system.

To this end, the Department of Transportation (DoTr) and its concerned agencies are
hereby mandated to devise and establish a mechanism which will grant fare discounts to student
passengers of the LRT-1, LRT-2, MRT-3, and the PNR; Provided, that the same shall be made
applicable to future rail transport systems to be constructed and established for public use.

SECTION 3. Coverage — This Act shall be applicable to all bona fide Filipi
currently enrolled either in primary, secondary, or tertiary academic institutions, including
vocational and technical schools. Specifically excluded are those students enrolled under post-

collegiate programs or those enrolled under short-term courses.

SECTION 4. Student Privilege - The students as defined in the preceding section shall
be entitled to a grant of twenty percent (20%) discount on the regular rates imposed by the
railway transport systems, upon presentation of their duly issued school Identification Cards
(IDs) or currently validated enrollment or matriculation forms, supported by other document/s as
may be deemed necessary to properly establish the grantee’s identity.


er aAurena

©

i
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34

SECTION 5. Violations — The following shall be considered as violations of this Act,
and will be made subject to the penalties prescribed and imposed by the applicable law:
a) Use of falsified or counterfeit IDs to avail of the discount granted under this Act;
b) Use of another person’s identity to avail of the discount granted under this Act;
©) Use of other means or machinations by which one illegally avails of the discount
granted under this Act.

SECTION 6, Non-compliance and complaints — Bona fide students who are refused to
avail of the privilege under this Act may file their complaints with the respective agency or entity
operating the railway transport system subject of the complaint.

All complaints disposed of by the said agencies may be brought up to the Office of the

Secretary of the Department of Transportation for review.

SECTION 7. Penalties ~ The DoTr shall prescribe reasonable penalties to impose on
non-compliant or erring operators of railway transport systems, but only upon due investigation
and after finding that a complaint to be true and valid.

SECTION 8 Implementing Rules and Regulations.- ‘The Department of
‘Transportation, in direct cooperation with the Office of Transport Cooperatives, the Philippine
National Railways, the Light Rail Transit Authority, the Metro Rail Transit Corporation, shall
formulate the necessary rules and regulations to implement the provisions of this Act within
ninety (90) days after its approval. The rules and regulations issued pursuant to this Section shall
take effect fifteen (15) days after its publication in a newspaper of general circulation.

SECTION 9. Separability Clause.— If any provision of this Act shall be held
unconstitutional, the remainder of this Act not otherwise affected shall remain in full force and

effect.
SECTION 10. Repealing Clause. ~ Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to, or inconsistent

with the provisions of this Act is hereby repealed, modified or amended accordingly.

SECTION 11. Effectivity Clause. — This Act shall take effect after fifteen (15) days

following its publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved,