Responsible Public Utility and Cargo Vehicle Operators Act

Sentate Offiee of the courtlarp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session AUG -4 P1:20 SENATE RECEIVIU SH S. No._ 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.! 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.com/headlines/2025/05/04/2440341/toddler-survives-sctex-tragedy

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. * Later that month, a runaway trailer truck in Marikina killed three people and injured ten after losing its brakes on an incline. In June, six GV Florida buses were filmed racing along a national highway in Isabela, prompting the suspension of drivers and units. 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.? 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 Marilao incident saved 2-year-old. 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 Marilao 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-vehicle crash leaves 3 dead, 10 hurt in Marikina. Retrieved July 17, 2025, from https://www.philstar.com/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 viral 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-viral-racing-video/story/ > 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.& 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-accidents-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

Senate fice ni the Secretir TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) First Regular Session 25 AUG -4 P1:20 SENATE RECEIED BY S. No. 802 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: ARTICLE I GENERAL PROVISIONS

Section 1. Short Title. - This Act shall be known as the "Responsible Public

4 Utility and Cargo Vehicle Operators Act."

Sec. 2. Declaration of Policy. - It is the policy of the State to promote

responsible public utility and cargo vehicle operations by ensuring the safety of roads, 7 protecting the lives of commuters, pedestrians, and road users, and upholding the rights and welfare of professional drivers. To this end, the State shall strengthen the regulation of public utility vehicles (PUVs), cargo trucks, and their operators through improved safety standards, labor protections, transparent governance, and clear accountability mechanisms in both public and private transport operations.

Sec. 3. Definition of Terms. - For purposes of this Act, the following terms are

hereby defined:

(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) Operatorrefers 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) Driver refers 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;

(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; (i) 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 Periodrefers 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; (0) Digita/ 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.

ARTICLE II STANDARDS FOR ROADWORTHY OPERATIONS AND TRAFFIC SAFETY

Sec. 4. Annual Roadworthiness Inspection. - PUVs and cargo trucks shall

4 undergo comprehensive annual inspections, including brake testing, emission 5 compliance, and verification of speed governor/ limiter functionality. Annual 6 Roadworthiness Inspections shall be a requirement for the annual registration of the 7 PUV or cargo trucks.

Sec. 5. Road Stoppage Penalty. - No public utility vehicle or cargo truck shall

remain idle or stationary on any public road, highway, or thoroughfare due to mechanical failure or other preventable causes that obstruct traffic or pose a safety risk. The Land Transportation Office (LTO) shall review the rules and guidelines for the immediate handling, towing, and penalization of such stoppages along national roads and highways. Local government units (LGUs) are likewise encouraged to enact ordinances prescribing localized penalties, removal protocols, and impoundment procedures for stoppages occurring on city, municipal, or barangay roads within their respective jurisdictions. ARTICLE III DRIVER WELFARE AND WORKING CONDITIONS

Sec. 6. Regularization and Professional Fees. - All operators, cooperatives, and

public utility vehicle (PUV) companies shall provide their drivers with formal employment contracts and ensure the payment of just and reasonable wages in accordance with law. The Regional Tripartite Wages and Productivity Board (RTWPB), in consultation with the Department of Labor and Employment (DOLE), Department of Transportation (DOTr), and relevant industry stakeholders, shall determine the minimum wage standard for professional drivers in the public transport and cargo sector, taking into account: (a) the cost of living in the region; (b) the nature and risk of the occupation,

(c) professional and skilled status of drivers, (d) productivity and profitability levels of PUV and cargo operators; and (e) prevailing social protection standards. In no case, however, shall the wage fall below one hundred fifty percent (150%) of the prevailing minimum wage in the region, subject to periodic review and 6 gradual phase-in mechanisms as may be set forth in the implementing rules and 7 regulations (IRR) for micro or small-scale operators with demonstrated financial limitations. Phased implementation may be granted to operators managing fewer than five 10 (5) vehicles, subject to submission of proof of financial incapacity, as determined in accordance with the rules and guidelines to be issued. Within six (6) months from the effectivity of this Act, DOLE and RTWPBs shall conduct wage impact studies and issue regional guidelines on professional driver wages

Sec. 7. Prohibition on Commission-Based or Boundary-Based Compensation

Schemes. - No public utility vehicle or cargo truck driver shall be compensated based on a boundary, commission, percentage, or any other quota-based earning system that depends on the volume of passengers, distance driven, or total collections made during the workday. All operators, cooperatives, or companies shall be required to adopt fixed, time- based compensation schemes aligned with wage and occupational safety standards, as provided under this Act and applicable labor laws. The Department of Labor and Employment (DOLE), in coordination with the Department of Transportation (DOTr), shall issue the necessary guidelines and enforcement mechanisms to ensure compliance with this provision, including penalties for non-compliant operators or employers.

Sec. 8. Work Hour Limitations. - No driver shall be required or allowed to

operate a truck or PUV for more than ten (10) hours in a 24-hour period. A continuous rest period of at least eight (8) hours per day shall be provided by the employer. ARTICLE IV CRIMINAL ACCOUNTABILITY AND VICTIM COMPENSATION

Sec. 9. Nature of the Offense and Non-Compromisability. - The crime of

2 Negligent Operation of a Public Utility or Cargo Vehicle Resulting in Death or Injury, 3 or Damage to Public Property, as defined in this Act, shall be classified as an offense against public safety and public interest. It shall be prosecuted by the State motu proprio, regardless of the existence, absence, or withdrawal of a private complainant. Negligence Resulting in Death or Serious Injury shall not be subject to amicable 7 settlement, compromise, or desistance by the victim or the victim's family.

Sec. 10. Death or Serious Injury Arising from Negligent Operation of a Public

9 Utility Vehicle or Cargo Truck. - Any person who, by reason of negligence, disregard 10 of road safety regulations, or violation of mandatory driving limitations, causes the death of or serious physical injury to any person, whether a passenger, pedestrian, or third party, while operating a public utility vehicle or cargo truck, shall be guilty of the crime of Negligent Operation of a Public Utility or Cargo Vehicle Resulting in Death or Injury, and shall be punished as follows: (a) If the act results in serious physical injuries, the penalty shall be: 1. Prisión mayor in its medium period (8 years and 1 day to 10 years); and 2. A criminal fine of not less than Five Hundred Thousand Pesos (P500,000.00). (b) If the act results in death, the penaity shall be: 1. Reclusión temporal in its maximum period (17 years, 4 months and 1 day to 20 years); and 2. A criminal fine of not less than One Million Pesos (P1,000,000.00). (c) If it is proven that the driver was under the influence of alcohol or illegal drugs at the time of the accident, the penalty shall be imposed in its maximum period, and the criminal fine shall be increased by Fifty Percent (50%); and (d) In all cases, the operator, franchise holder, or registered cooperative shall be jointly and severally liable with the driver for the payment of fines. No criminal or civil liability shall attach under this Act to the driver or operator of a public utility vehicle or cargo truck when it is established, after due investigation

and hearing, that the proximate cause of the death or serious injury was the unlawful, 2 reckless, or grossly negligent act of the deceased or injured party, and that the driver 3 exercised all necessary precautions and the standard of extraordinary diligence as required by law.

Sec. 11. Civil Damages for Negligence Resulting in Death. - In cases of death

6 arising from vehicular accidents involving public utility vehicles or cargo trucks due to 7 the fault or negligence of the driver or operator, whether the deceased is a passenger, 8 pedestrian, or other third party, the judicial computation of civil damages shall, as a minimum, begin with the following amounts, exclusive of loss of earning capacity, moral damages, and other applicable damages under the Civil Code: (a) In cases of simple negligence, Five Hundred Thousand Pesos ($500,000.00); and (b) In cases of gross negligence, One Million Pesos (P1,000,000.00). In determining civil liability under this Act, courts shall consider the contributory or sole negligence of the deceased or injured party, which may proportionally reduce or extinguish any award of damages.

Sec. 12. Vicarious Liability of Operators. - Without prejudice to the provisions

of Articles 1733 to 1766 and Article 2180 of Republic Act No. 386, otherwise known as the Civil Code of the Philippines, the owner, operator, franchise holder, or registered cooperative of a public utility vehicle or cargo truck shall be held jointly and severally liable with the driver for any death, serious physical injury, or substantial damage to persons or property arising from a vehicular accident or negligent act occurring in the course of the vehicle's operation, whether the victim is a passenger, pedestrian, or third party. Such liability shall apply regardless of whether the employee acted within the scope of their authority or in violation of the operator's instructions. The defense of 27 having exercised the diligence of a good father of a family in the selection and supervision of employees shall not exempt the operator from liability. To avoid liability for non-compensatory damages, such as moral or exemplary damages, the operator must prove that extraordinary diligence was exercised not only in the hiring and supervision of drivers but also in the maintenance of vehicles, enforcement of rest periods, and compliance with roadworthiness, safety, and

1 operational standards- consistent with the degree of care required under Articles 1733 2 and 1755 of the Civil Code.

Sec. 13. Summary Civil Proceedings for Victims of Road Accidents. - The

Supreme Court, within six (6) months from the effectivity of this Act, shall adopt 5 simplified and expeditious procedures for the resolution of civil claims arising from road accidents involving public utility vehicles or cargo trucks that result in death or 7 serious physical injury to passengers, pedestrians, or third parties. Such procedures shall aim to provide accessible, affordable, and prompt 9 remedies, taking into account the urgent medical or burial needs of victims and the 10 financial burden on surviving family members. The simplified procedure shall allow for summary determination of liability and compensation, and may be incorporated into existing special rules or issued as a separate set of guidelines.

Sec. 14. State Prosecution. - The State shall take all necessary measures to

preserve, secure, and safeguard all material evidence related to the offenses provided in this Act. In cases of death arising from road accidents involving public utility vehicles or cargo trucks, the State shall initiate and pursue criminal prosecution motu proprio, notwithstanding the absence or withdrawal of a private complainant.

Sec. 15. Victim Fund. - A Public Utility Victim Compensation Fund shall be

established under the Department of Transportation (DOTr) that will be accessible to victims or families of fatalities caused by unidentified negligent PUV and cargo drivers, including passengers, pedestrians, and third-party road users, victims of road crashes involving PUVs and cargo trucks where there is delay or denial in compensation, whether the driver is identified or not. Contributions shall be sourced from operator license fees and penalties. The DOTr shall promulgate the necessary rules and guidelines to ensure the accessibility, equitable distribution, and timely release of financial assistance under the Public Utility Victim Compensation Fund. Such rules shall establish reasonable criteria for eligibility, documentary requirements, and procedures that are responsive to the urgent needs of victims or their surviving families, particularly in cases involving death or serious physical injury.

Provided, That no compensation shall be awarded under this Fund in cases 2 where, after due determination, the deceased or injured party is found to be the proximate and sole cause of the incident due to unlawful or grossly negligent conduct.

Sec. 16. Destruction of Public Property. - Any public utility vehicle or cargo

5 truck that causes damage to government property shall be subject to a monetary 6 penalty equivalent to five (5) times the assessed value of the damage for the first 7 offense, and ten (10) times the assessed value for each succeeding offense. The Department of Public Works and Highways (DPWH) or the local engineering 9 office, as appropriate, shall conduct a formal assessment of the damaged property 10 based on proper and sufficient technical guidelines. The Department of Transportation (DOTr), in coordination with DPWH and the Department of the Interior and Local Government (DILG), shall issue the implementing rules and procedures to ensure uniformity, transparency, and due process in the valuation, enforcement, and collection of such penalties.

Sec. 17. Penalty for Falsification or Manipulation of Annual Roadworthiness

Inspection Results. - Any person who, directly or indirectly, engages in the falsification, manipulation, or fraudulent issuance of roadworthiness inspection results required under this Act shall be penalized as follows: (a) If the person is the owner or operator of the vehicle, a fine of not less than Two Hundred Fifty Thousand Pesos (P250,000.00) shall be imposed, and the vehicle's registration shall be suspended for one (1) year. Repeat offenders shall be subject to permanent revocation of vehicle registration and disqualification from operating PUVs or cargo trucks. (b) If the person is an employee, officer, or owner of an accredited inspection center, or a government official or employee, found to have issued, approved, or assisted in the falsification of inspection results, the penalty shall be: 1. Imprisonment of not less than four (4) years but not more than six (6) years, 2. A fine of not less than Five Hundred Thousand Pesos (P500,000.00), and 3. Perpetual disqualification from holding public office or operating a vehicle inspection center.

In all cases, the fraudulent inspection certificate shall be considered null and void, and any vehicle operating based on such shall be subject to immediate impoundment.

Sec. 18. Penalties for Violation of the Prohibition on Boundary-Based

Compensation. - Any operator, franchise holder, cooperative, or company found to have engaged in or continued the implementation of a boundary, commission, or other quota-based compensation scheme in violation of Section 6 of this Act shall be subject to the following penalties: (a) For the first offense - a fine of not less than One Hundred Thousand Pesos (P100,000.00) per affected driver and an order to regularize the driver within thirty (30) days. (b) For the second offense - a fine of not less than Two Hundred Fifty Thousand Pesos (P250,000.00) per affected driver and a suspension of franchise or operating permit for a period not exceeding sixty (60) days. (c) For the third and succeeding offenses - a fine of not less than Five Hundred Thousand Pesos (P500,000.00) per affected driver and permanent disqualification from renewing, holding, or transferring a franchise or operating permit for any public utility vehicle or cargo truck.

Sec. 19. Due Process in the Imposition of Penalties. - Penalties under this Act

shall be imposed only after prior notice, hearing, and determination by the Land Transportation Franchising and Regulatory Board (LTFRB) or the appropriate regulatory agency.

Sec. 20. Franchise Accountability. - Operators with three (3) or more major

safety violations within five (5) years may have their franchise suspended or revoked, subject to due process. Operators, companies, or cooperatives whose units are repeatedly involved in fatal or injurious accidents, or found to have systematically failed safety inspections, may be blacklisted from applying for new franchises, routes, or vehicle registrations for a period of up to five (5) years. This blacklist shall extend to their responsible officers, directors, or board members who exercised control or supervision during the period of violation. The Department of Transportation (DOTr), in coordination with the LTFRB and LTO, shall maintain and publish a national blacklist of such entities and

1 individuals to ensure transparency and prevent circumvention through shell entities or 2 rebranding. ARTICLE V PUBLIC DISCLOSURE

Sec. 21. Digital Registry. - The Land Transportation Office (LTO) shall maintain

and regularly update a publicly accessible digital registry containing information on 7 registered public utility vehicles (PUVs), buses, and cargo trucks, including their plate 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 appropriate safeguards and limitations are in place. ARTICLE VI MISCELLANEOUS PROVISIONS

Sec. 22. Transitory Provision on Wage Implementation. - To minimize

disruption to the transport industry and ensure orderly transition, the Department of Labor and Employment (DOLE), in coordination with the Department of Transportation (DOTr), may implement the wage-related provisions under Sections 6 and 7 of this Act in a staggered manner, taking into account the operational scale, financial capacity, and employment impact on micro and small operators.

Sec. 23. Appropriations. - The amount necessary to implement this Act shall

be included in the annual General Appropriations Act under the budgets of the Department of Transportation (DOTr), the Land Transportation Office (LTO), the Land Transportation Franchising and Regulatory Board (LTFRB), and the Department of Labor and Employment (DOLE), as applicable.

Sec. 24. Implementing Agencies. - The DOTR, LTO, LTFRB, and LGUs shall

issue the necessary rules and regulations to implement this Act within ninety (90) days from its effectivity.

Sec. 25. Monitoring and Evaluation. - The DOTr shall submit an annual report

2 to Congress on the implementation of this Act, including statistics on road accidents involving PUVs and cargo trucks, enforcement actions taken, wage compliance, use of the Victim Compensation Fund, and effectiveness of the digital registry.

Sec. 26. Separability Clause. - If any provision of this Act is declared

unconstitutional or invalid, the other provisions not affected thereby shall remain in 7 full force and effect.

Sec. 27. Repealing Clause. - All laws, executive orders, administrative orders,

rules, and regulations inconsistent with this Act are hereby repealed or modified accordingly.

Sec. 28. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in at least two (2) national newspapers of general circulation. Approved,