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

Seventeenth Congress
First Regular Session

HOUSE BILL NO. 3941

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.

“Red” H. DURANO VI


Republic of the PI

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Seventeenth Congress
First Regular Session

HOUSE BILL NO. 3941

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 1991 are
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
G) 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 :


() 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 motoreycle-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,