Section 10Sec./Art. 10

Penalties. -After due investigation and finding the complaint against any public transportation utility to be true and valid, the following penalties shall be imposed as herein specified:

(a) For Land Public-Transportation Utilities, including tricycles:

The driver shall suffer the penalty of suspension of drivers license for:

(1) One (1) month for the first offense;

(2) Two (2) months for the second offense;

(3) Three (3) months for the third offense; and

(4) Three (3) months plus a fine of One thousand pesos (₱1,000.00) for each subsequent offense.

For the owner or operator of the land public transportation utility: A fine of Five thousand pesos (₱5,000.00) for the first offense; a fine of Ten thousand pesos (₱10,000.00) and impounding of unit for thirty (30) days for the second offense; and a fine of Fifteen thousand pesos (₱15,000.00) and cancellation of Certificate of Public Convenience (CPC) for the third and subsequent offenses.

(b) For Sea/Water Public Transportation Utilities:

The owner or operator of the sea/water public transportation utility responsible for the refusal or failure shall be penalized with a fine of:

(1) Five thousand pesos (₱5,000.00) for the first offense;

(2) Ten thousand pesos (₱10,000.00) for the second offense;

(3) Twenty thousand pesos (₱20,000.00) for the third offense; and

(4) Additional increments of Ten thousand pesos (₱10,000.00) on top of the fine for the third offense for each subsequent offense.

(c) For Air Public Transportation Utilities: A fine of Fifty thousand pesos (₱50,000.00) for the first offense; a fine of One hundred thousand pesos (₱100,000.00) and a warning for the second offense; and a fine of One hundred fifty thousand pesos (₱150,000.00) and other sanctions as may be determined by CAB, for the third and subsequent offenses; and

(d) For Rail Public Transportation Utilities: All rail public 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 privately-operated rail public transportation utilities, the amount of fines prescribed under subparagraph (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.