Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Fifteenth Congress
First Regular Session

HOUSE BILL NO. 898

Introduced by Honorable Ramon “Red” H. Durano VI

EXPLANATORY NOTE

This bill seeks to grant the local government units the power to
regulate and control the use of motorcycles-for hire in the rural and
remote areas within their territorial jurisdiction.

In the countryside, motorcycles are frequently used and patronized
by the people as means of public transportation. These are considered as
an alternative to the perennial problem of lack of transportation in the
countryside where the roads are not passable by four wheeled motor
vehicles and in, other places with inadequate transport such as the mining
areas.

The use of motorcycle as transportation bears several names in the
islands of Visayas and Mindanao, where they are commonly known as
“habal-habal, sputniks, skylab” and the like. While these motorcycles
are not registered vehicle for-hire, these are being used and commonly
accepted as public transport vehicles. Thus, the operation of habal-habal
is considered illegal.

Moreover, the said business is not covered by any kind of
insurance. Hence, parties cannot claim any benefit or reimbursement
whatsoever for injuries suffered while using this type of vehicle. Further,
the lack of franchise opens the opportunity for traffic enforcers to harass,
mulct and fleece the operator of habal-habal.


Appropriately, it is also being proposed that the local government
units shall regulate and grant franchise for the operation of habal-habal
or similar transport system. Further, it is proposed that it shall be utilized
only in remote areas within the territorial jurisdiction of the local
government unit that are not reached by four wheeled public utility
vehicles. This shall ensure the safety of the passengers using such form of
transportation in penetrating narrow trails and passageways, as well as
offering rural folk cheaper means of transportation.

In view of the foregoing, the approval of this bill is urgently
requested.

RAMON/Red” H. DURANO VI


Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Fifteenth Congress
First Regular Session

8938
HOUSE BILL NO.

Introduced by Honorable Ramon “Red” H. Durano VI

AN ACT
DEVOLVING THE REGULATORY AND FRANCHISING
POWERS OVER THE OPERATION OF MOTORCYCLE-FOR-
HIRE, OR HABAL-HABAL TO CITIES AND MUNICIPALITIES,
AMENDING FOR THE PURPOSE SECTION 447 AND 458 OF
REPUBLIC ACT No. 7160, AS AMENDED, OTHERWISE KNOWN
AS THE LOCAL GOVERNMENT CODE OF 1991

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

SECTION 1. Section 447 (a) (3) (vi) and 458 (3) (vi) of Republic
Act No. 7160 otherwise known as the Local Government Code of
1991are hereby amended to read as follows:

“Sec. 447. Powers, Duties, Functions and Compensation —

(a) The sangguniang bayan, as the legislative body of the

municipality, shall enact ordinances, approve resolutions and

appropriate funds for the general welfare of the municipality and its

inhabitants pursuant to Section 16 of this Code and in the proper

exercise of the corporate powers of the municipality as provided

for under Section 22 of this Code, and shall:


a)

@)

Approve ordinances and pass resolutions necessary for
an efficient and effective municipal government, and in this
connection shall:

Xxx Xxx XXX,

Subject to the provisions of Book II of this Code,
grant franchises, enact ordinances authorizing the issuance
of permits or licenses, or enact ordinances levying taxes, fees
and charges upon such conditions and for such purposes
intended to promote the general welfare of the inhabitants of
the municipality, and pursuant to this legislative authority
shall:

XxX XXX XXX
(vi) Subject to the guideline prescribed by the Department
of Transportation and Communications, regulate the
operation of HABAL-HABALS OR MOTORCYCLES FOR
HIRE AND tricycles and grant franchises for the operation
thereof within the territorial jurisdiction of the municipality.

XXX XXX XXX

“Sec. 458. Powers, Duties, Functions and Compensation —

(a) The sangguniang panglungsod, as the legislative body of the
city, shall enact ordinances, approve resolutions and appropriate

funds for the general welfare of the city and its inhabitants pursuant

to Section 16 of this Code and in the proper exercise of the

corporate powers of the city as provided for under Section 22 of
this Code, and shall :

a

Approve ordinances and pass resolutions necessary for

an efficient and effective municipal government, and in this


connection shall:

xxx XXX XXX.

(3) Subject to the provisions of Book II of this Code, enact
ordinances granting franchises and authorizing the issuance
of permits or licenses upon such conditions and for such
purposes intended to promote the general welfare of the
inhabitants of the city, and pursuant to this legislative
authority shall:

XXX XXX ‘XXX
(vi) Subject to the guideline prescribed by the Department
of Transportation and Communications, regulate the
operation of HABAL-HABALS OR MOTORCYCLES FOR,
HIRE AND tricycles and grant franchises for the operation
thereof within the territorial jurisdiction of the city.”

SEC. 2. Inventory/Survey. — The local chief executive of the local
government unit where motorcycle-for-hire of habal-habal is used shall
conduct a comprehensive inventory/survey of all the existing and actually
operating motorcycle-for-hire or habal-habal in the city or municipality,
including the routes which are traditionally used by them.

SEC. 3 Application. — The local government unit shall receive,
process and evaluate all applications for franchise for the operation of
motorcycle-for-hire within the territorial jurisdiction of the city or
municipality, subject to the guidelines prescribed by the Department of

Transportation an Communications. It shall also conduct an actual


physical inspection of the motorcycle unit with concentration on the body
configurations and fitness to operate as a public utility vehicle.

All applications for franchise of motorcycle-for hire or habal-habal
shall be submitted to the local government unit where they are operating

or where the applicant is a resident.

SEC. 4. Documentation. — Any person applying for the franchise

of a motorcycle-for-hire shall submit the following:

a. Certification of the Punong Barangay attesting that the
applicant is a bonafide resident of the barangay within the
city or municipality;

b. Certificate of registration and official receipt of registration
payment for the said motorcycle unit; and

c. A Deed of Undertaking by the owner that the unit applied for
will be operated in the said city or municipality.

SEC. 5. Franchise. — After favorable consideration of the
application, the same shall be endorsed to the sangguniang bayan or
sangguniang panlungsod for the issuance of a franchise for the operation
of motorcycle-for-hire or habal-habal within the jurisdiction of the city or
municipality. The franchise shall indicate the place or route where the
motorcycle-for-hire or habal-habal is authorized to operate.

SEC. 6. 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 Office (LTO) for the issuance of a new “for-

hire” plate. In case, however, the motorcycle unit concerned was


previously issued a plate of different classification, such plate shall first

be surrendered before issuing the new “for-hire” plate.

SEC. 7. Administrative Boundaries. — The authority granted to
local government unit to regulate the operation of motorcycle-for-hire or
habal-habal shall be limited or confined only to the city or municipality,
which issued the franchise. The local government unit may only grant
franchise to motorcycles operated within the city or municipality and

owned by residents hereof.

In cases where travel between two (2) local government units can
be done by motorcycle-for-hire or habal-habal in the absence of any
higher mode of public transportation, the city or municipality concerned
may enter into a Memorandum of the Agreement (MOA) to allow
motorcycle-for-hire or habal-habal to transverse beyond the franchise
route and within the boundary of another local government unit, which is
a party to the MOA.

SEC. 8. Limits of Operations. — Motorcycle-for-hire or habal-habal
is authorized to operate on any road within the city or municipality.
However, it is prohibited to operate, except to cross along the national
highway or on any road which allows a maximum speed greater than
forty kilometer per hour, especially on well-paved, high speed roads,
unless special lanes on the shoulder are provided.

The local government unit concerned may limit and fix the routes
by adopting a scheme of boundaries as they may heretofore impose.


SEC. 9. Insurance Coverage. — For purposes of passenger safety,
the motorcycle owner shall, upon registration, procure the necessary
insurance for third party liability.

SEC. 10. Rules and Regulations, — The Department of
Transportation and Communications (DOTC) and the Leagues of
Municipalities shall, within sixty (60) days after the effectivity of this
Act, issue the necessary rules and regulations to implement the provisions
of this Act.

SEC. 10. Effectivity. — This act shall take effect within fifteen (15)
days after its publication in at least two newspapers of general circulation.

Approved,