Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

8397

House Bill No.

Introduced by Representative John Marvin “Yul Servo” C. Nieto

Explanatory Note

As a manifestation of support to this timely piece of legislation, this representation
respectfully refiles this bill, which has constantly been receiving support from the
past and present Congress.

There are many students in the country that rely solely on public transportation to
travel from once place to another. With the state of rising price of goods and
services, and the tuition fees of most school increasing, transport services has
become financial burden for them. These students, who are majorly comprised of
non-earners, depend on a small budget to accommodate all their needs. In order
to alleviate their current condition, they should be shown be support and be
granted a 20% student fair discount in all public transportation that will include
weekends, summer breaks, and holidays.

This measure seeks to institutionalize the discount granted to students in various
public Land transportation which includes, but not limited to, public utility buses
(PUBs), public utility jeepneys (PUJS), taxis, tricycles, Transport Network Vehicle
Services (TNVS), Transport Network Companies (TNCs), shuttle services, and
public and private railways, such as the Light Rail Transit (LRT), Mass Rail Transit
(MRT), and Philippine National Railways (PNR). This will greatly help the students
in availing the services they need without the burden of not being able to afford
the standard fare.

In view of the foregoing, the passage of this measure is earnestly sought.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session
8397

Introduced by Representative John Marvin “Yul Servo” C. Nieto

AN ACT
INSTITUTIONALIZING THE GRANT OF STUDENT FARE DISCOUNT
PRIVILEGES ON PUBLIC TRANSPORTATION AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. - This Act shall also be known as the "Student Fare
Discount Act."

SECTION 2. Declaration of Policy. - Pursuant to Article XIV, Section 1 of the
Constitution, “The State shall protect and promote the right of all citizens to
quality education at all levels and shall take appropriate steps to make such
education accessible to all." In addition, Paragraph 3, Section 2 thereof directs the
State 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.


SECTION 3. Purpose. - Consistent with these Constitutional mandates, this Act
aims to:
a) Establish a mechanism that ensures the mandatory grant of fare discount
privilege to students;
b) Enlist the cooperation and support of transportation utility owners to
extend assistance to students as a social responsibility through the
observance of this grant; and
c) Encourage students, especially the poor and underprivileged, to pursue
quality education to secure their future and make them responsible citizens.

SECTION 4. Definition of Terms. - For purposes of this Act:

a) “Student” refers to any Filipino citizen currently enrolled in duly
authorized basic and tertiary education institutions, including technical-
vocational schools. Specifically excluded are those enrolled in dancing and
driving schools, short term courses of seminar type, and post-graduate
studies (those taking up medicine, law, masters, doctorate degrees; and the
like); and

b) “Transportation utilities” refers to both public and private companies
engaged in the conveyance of passengers, either by land, water or air, or
rail for a fixed rate of fees, excluding school transport service providers.

SECTION 5. Coverage. - This Act shall cover all Filipino students, except those
specifically excluded in Section 4 hereof, engaging the services of transportation
utilities. Land transport includes, but not limited to, public utility buses (PUBs),
public utility jeepneys (PUJS), taxis, tricycles, Transport Network Vehicle Services
(TNVS), Transport Network Companies (TNCs), shuttle services, and public and
private railways, such as the Light Rail Transit (LRT), Mass Rail Transit (MRT), and
Philippine National Railways (PNR).


The fare discount and other privileges under this Act shall be available for the
entire period the student in enrolled, including weekends and holidays. In the
event of a promotional fare discount, the student may avail of the promotional
discount or the discount provided herein.

SECTION 6. Privilege of Students Involving Domestic Travel. - The students
under this Act shall be entitled to a grant of twenty percent (20%) discount on
regular fares, upon presentation of their duly issued schoo! Identification Cards
(IDs) or current validated enrollment forms supported by other documents to
properly establish identity, subject to an appropriate verification mechanism to be
provided in the Implementing Rules and Regulations (IRR): Provided, That in the
case of air transportation utilities, the discount shall only apply to the base fare or
the price of the ticker before taxes and costs for ancillary services.

SECTION 7. Privilege of Students involving International Travel. - All laws
to the contrary notwithstanding, Filipino students who will travel abroad for
education, training, and competition shall be exempt from the payment of travel
tax upon proper showing of proof or documentation of intended purpose.

SECTION 8. Prohibitions on Availment of Double Discounts. - The privileges
mentioned in this Act shall not be claimed if the student claims a higher discount
as may be granted by the transportation utility or under other existing laws or in
combination with other discount programs.

SECTION 9. Tax Deduction. - The transportation utility may claim the discounts
granted herein as tax deduction based on the cost of the services rendered:
Provided, That the cost of the discount shall be allowed as deduction from gross
income for the same taxable year that the discount is granted: Provided, further,
That the total amount of the claimed tax deduction net of VAT, if applicable, shall


be included in their gross sales receipts for tax purposes and shall be subject to
proper documentation and to the provisions of the National Internal Revenue Code
(NIRC), as amended.

SECTION 10. Filing of Complaints. - Students who are refused from availing of
the privileges under this Act may file their complaints with the following proper
authorities:
a) The Land Transportation Franchising and Regulatory Board (LTFRB) for
land
transportation utilities;
b) The Maritime Industry Authority (MARINA) for sea/water transportation
utilities;
Cc) The Civil Aeronautics Board (CAB) for air transportation utilities;
d) The Legal Service of the Department of Transportation (DOTr) for rail
transportation utilities, including the Light Rail Transit (LRT), Metro Rail
Transit (MRT) and Philippine National Railways (PNR); and
e) Local government units concerned for tricycles.

All complaints disposed of by such regulatory agency may be brought to the Office
of the Secretary of the DOTr for review.

SECTION 11. Penalties. - After due investigation and finding the complaint
against any transportation utility to be true and valid, the following penalties shall
be imposed as herein specified:
a) For Land Transportation Utilities -
a. First Offense - a fine of five thousand pesos (P5,000.00);
b. Second Offense - a fine of ten thousand pesos (P10,000.00) and
impounding of unit for thirty (30) day;


c. Third and Subsequent Offenses - a fine of fifteen thousand pesos
(P15,000.00) and cancellation of Certificate of Public Convenience
(CPC) for the third and subsequent offenses.

b) For Water Transportation Utilities —
a. First Offense - a fine ranging from ten thousand pesos (P10,000.00)
to fifty thousand pesos (P50,000.00) and warning;
b. Second Offense - a fine ranging from twenty thousand pesos
(P20,000.00) to sixty thousand pesos (P60,000.00) and suspension of
operation of the ship for a period not exceeding thirty (30) days;
c. Third and Subsequent Offenses - a fine ranging from thirty thousand
pesos (P30,000.00) to seventy thousand pesos (P70,000.00) and
suspension of operation of the ship;
Provided, that the imposition of the ranges of penalties under this
subparagraph shall be based on the ship's volume in gross tonnage.

c) For Air Transportation Utilities -
a. First Offense - a fine ranging from fifty thousand pesos
(P50,000.00) to one hundred thousand pesos (P100,000.00);
b. Second Offense - a fine ranging from one hundred thousand pesos
(P100,000.00) to one hundred fifty thousand pesos (P150,000.00) and
a warning;
c. Third and Subsequent Offenses - a fine ranging from one hundred
fifty thousand pesos (P150,000.00) to two hundred thousand pesos
(P200,000.00) and other sanctions as may be determined by CAB.

d) For Rail Transportation Utilities - All rail transportation utilities are
mandated to observe the aforesaid fare discount privilege and designate a
student/senior citizen fare booth in their boarding stations. Violations thereof


shall be sanctioned or fined under the existing Civil Service Rules. For
private railways, the amount of fines prescribed under sub-paragraph (b) of
this Section shall apply, to be imposed by the DOTr.

Upon filing of an appropriate complaint, and after due notice and hearing, the
proper authorities in subparagraphs (b), (c), and (d), with respect to private
railways, of this Section may also cause the cancellation or revocation of CPC,
permit to operate, franchise, licenses and other privileges granted to the
transportation utilities who fail to comply with the provisions of this Act.

SECTION 12. Use of Falsified Identification Documents and
Misrepresentation. - Any person who avails or attempts to avail of the privileges
under this Act through the use of falsified identification documents, fraud or any
form of misrepresentation shall be denied said privileges and may be subject to
civil and penal liabilities prescribed by law.

SECTION 13. Implementing Rules and Regulations. - The Department of
Transportation (DOTr) and its attached agencies, in consultation with LTFRB,
MARINA, and CAB, and the Department of Finance, shall promulgate, within one
hundred twenty (120) days upon approval of this Act, the necessary rules and
regulations for the effective implementation of the provisions of this Act: Provided,
That the failure of the concerned agencies to promulgate the said rules and
regulations shall not prevent the implementation of this Act upon its effectivity.

SECTION 14. Repealing Clause. - All provisions of laws, decrees, orders,
including rules and regulations inconsistent herewith are hereby repealed or
modified accordingly.


SECTION 15. Separability Clause. - If any portion or provision of this Act is
declared invalid or unconstitutional, the remainder of this Act or any provisions not
affected thereby shall remain in full force and in effect.

SECTION 16. Effectivity Clause. - This Act shall take effect fifteen (15) days
following its publication in the Official Gazette or in at least two (2) newspapers of

general circulation.

Approved,