FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
) 
) 
) 
Second Regular Session 
SENATE 
S. No. 2897 
'11 
JUL 19 P 2 :15 
Introduced by Senator Manuel "Lito" M. Lapid 
EXPLANATORY NOTE 
This bill seeks to grant the local government units the power to regulate the operation of 
motorcycles-for-hire in their areas of jurisdiction, similar to the regulation of tricycles. 
While these motorcycles-for-hire are accepted as' common means of transportation in 
many localities, it is important to note that many of these motorcycles are not registered and/or 
unregulated, thus making their business operation illegal. 
The regulation of the business operation of these motorcycles-for-hire is intended 
primarily to protect both the operator and the passengers from their inability to claim for 
insurance in case accidents result to death or injury. It is for this reason that these motorcycles-
for-hire should be registered as public transport and be governed by the law on common 
carriers. 
In the interest of road safety, the immediate passage of this bill is earnestly sought. 
NUEL "LITO" M. LAPI.~ 
Senator 
r 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S. No. 2897 
) 
) 
) 
'11 
JUL 19 P 2 :15 
Introduced by Senator Manuel "Lito" M. Lapid 
AN ACT 
REGULATING THE BUSINESS OPERATION OF MOTORCYCLES-FOR-
HIRE AND FOR OTHER PURPOSES 
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 "Motorcycle-For-Hire 
Act of 2011 ". 
SECTION 2. Declaration of Policy. - It is the policy of the State to render basic 
services to the people. In many areas in our country where roads are not passable by 
tricycle and any four-wheeled vehicles, the peoples' initiatives in solving their 
transportation problems must be respected and recognized with the end in view of 
instituting effective management thereof. Toward this end, local governments are 
hereby tasked to regulate the use of motorcycles-for-hire. 
SECTION 3, Local Franchise. - The municipality or city shall receive, process 
and evaluate all applications for the grant of franchise to operate motorcycles-for-hire 
within their territorial jurisdiction. For purposes of this Act, motorcycle-for-hire refers to a 
two-wheeled motor vehicle which has been modified in order to carry or transport 
passengers or goods for compensation, offering their services to the public. 
a) Any person applying for the grant of franchise to operate a motorcycle-for-hire 
shall submit the following documents: 
1) Certification of the punong barangay attesting that applicant is a 
bonafide resident of the barangay within the city or municipality; 


2) Certificate of registration and official receipt of registration payment for 
the said motorcycle unit; and 
3) A deed of undertaking by the owner that the unit applied for will be 
operated within the said city or municipality. 
b) After favorable consideration of the application, the same shall be endorsed 
to the sanggunian bayan or sangguniang panglungsod for the issuance of 
franchise for the operation of motorcycle-for-hire within the territorial 
jurisdiction of the city or municipality. The franchise shall indicate the place or 
route where the motorcycle-for-hire is authorized to operate. 
SECTION 4. Issuance of Plate. - Upon receipt of the franchise issued by the city 
or municipality, the applicant shall bring the motorcycle unit to the Land Transportation 
Franchising and Regulatory Board (L TFRB) for the issuance of a new "for-hire" license 
plate. In case the motorcycle unit was previously issued a license plate of different 
classification, such plate shall first be surrendered before issuing the new "for-hire" 
license plate. 
SECTION 5. Administrative Boundaries. -
The authority granted to local 
government unit to regulate motorcycles-for-hire shall be limited and confined to the 
boundaries of the city or municipality. The local government unit may only grant 
franchise to motorcycles operating within the city or municipality and owned by 
residents thereof. 
In cases where travel between two (2) municipalities can only be done by 
motorcycles-for-hire, in the absence of any other means of public transportation, the 
cities or municipalities traversed by the motorcycles-for-hire shall agree between or 
among themselves through a Memorandum of Agreement how incursions of 
motorcycles-for-hire belonging to another city or municipality will be treated. 
SECTION 6. Limits of Operations. -
Motorcycles-for-hire are authorized to 
operate on any road within the city or municipality. However, they are prohibited to 
operate, except to cross, along a national highway or on any road which allows a 
maximum speed greater than 40 kilometers per hour. 
The local government unit with jurisdiction over the roads may limit and fix the 
routes for motorcycles-for-hire. 


SECTION 7. Insurance Coverage. - For purposes of passenger's safety, the 
owner of motorcycle-for-hire shall, upon registration, procure the necessary insurance 
for third party liability. 
SECTION 8. Penalty - The owner of a motorcycle-for-hire who fails to register its 
operation shall be fined in the amount of not less than Three Thousand Pesos 
(P3,000.00) but not more than Five Thousand Pesos (P5,000.00) and the motorcycle 
unit shall be impounded until registered. 
SECTION 9. Implementing Rules and Regulations. -
The Secretary of 
Transportation and Communications shall, within sixty (60) days after the effectivity of 
this Act, issue the necessary rules and regulations to implement this Act. 
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 7. Effectivity Clause. - 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,