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

TWENTIETH CONGRESS,

First Regular Session

HOUSE BILL NO. 65

INTRODUCED BY REPRESENTATIVE JURDIN JESUS M. ROMUALDO

EXPLANATORY NOTE

This is a refiled bill from the 19th Congréss, which was previously passed on Third
Reading in the House of Representatives and transmitted to the Senate for its appropriate
action. While several Senate versions have also been filed, both these and the House
version remain pending at the committee level.

The measure was initially introduced during the 18th Congress by the late Congressman
Raul V. Del Mar and was approved on Third Reading by the House on February 2, 2022.

This version seeks to establish a clearer policy on the franchising and operation of
motorcycle-for-hire services in the country. It also aims to delineate the respective
mandates of the Land Transportation Office (LTO) and the Land Transportation
Franchising and Regulatory Board (LTFRB) in regulating this mode of transport.

During the height of the COVID-19 pandemic, commuters, businesses, and individuals
increasingly relied on digital platforms and logistics services to book rides, deliver
perishable goods, transport parcels and documents, and address various mobility needs.
Motorcycle-for-hire services offered a convenient solution, especially in navigating traffic
and utilizing secondary routes. This shift in behavior was quickly adopted and has since
become a part of everyday life.

Such services have proven essential—not only during the pandemic but continuing up to
the present—due to their speed, convenience, and adaptability to consumer needs.
Reliable and efficient operators, including Transportation Network Companies (TNCs)
and Online E-Commerce Platform Providers (OEPPs), have since emerged and are now
widely utilized by the public.

Thus, there is a pressing need to institutionalize a clear regulatory framework that will:
+ Promote efficient and safe service delivery;
+ Set clear guidelines for operators, riders, TNCs, and OEPPs;
+ Define the specifications of motorcycles suitable for hire;
+ Ensure regular training for riders;
+ Establish safety protocols for both providers and clients; and
+ Streamline processes for franchise applications, opening of routes, and
qualification of operators and riders.

Furthermore, regulatory agencies such as the LTFRB and LTO must work in coordination
with the Department of Trade and Industry-Bureau of Product Standards, TESDA, the
Department of Health, the Department of the Interior and Local Government, and other
stakeholders to develop the necessary implementing guidelines for this Act.


The early passage of this bill, with the support of the Members of Congress, will be greatly
appreciated as it ensures safer, more reliable, and better-regulated motorcycle-for-hire
services across the country.

JURDIN JI |. ROMUALDO


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

TWENTIETH CONGRI

First Regular Session
nousE BILL No. 65

INTRODUCED BY REPRESENTATIVE JURDIN JESUS M. ROMUALDO.

AN ACT
REGULATING THE OPERATION OF MOTORCYCLES-FOR-HIRE
AND PROVIDING PENALTIES FOR VIOLATION THEREOF

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

assembled:

SECTION 1. Short Title. - This Act shall be known as the “Motorcycles-for-Hire Act.”

SEC. 2. Declaration of Policy. - The State recognizes the importance of transportation in
economic development. The recent innovations in technology has opened an opportunity for
other modes of public conveyance, such as motorcycles-for-hire, to thrive as a reliable and
accessible mode of transportation. However, despite its promise of convenience and fast
service, it must be regulated to ensure that the interest of the general public is protected. Thus,
the State shall allow the regulated operation of motorcycles-for-hire to provide the public with

an additional mode of public transportation, which is sufficient, safe, secure and economical.

To this end, the State shall establish mechanisms and guidelines in regulating all the

operational aspects of motorcycles-for-hire.

SEC. 3. Definition of Terms. — As used in this Act:

(a) Digital platform refers to information and communications technology-enabled
mechanism that connects and integrate producers and users in online environments where

goods and services are requested, developed, and sold, and data is generated and exchanged;

(b) Motorcycle refers to any two (2)-wheeled motor vehicle without appendages;
{c) Motorcycle-for-hire refers to a motorcycle, duly registered as such under this Act, and

used to carry passengers or goods on a for hire basis, offering its services to the public. A


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motorcycle-for-hire shall be considered a public utility vehicle and its operation a public utility;

(d) Motorcycle taxi platform provider (MTPP) refers to an entity which provides pre-

arranged transportation services for compensation using a digital platform to connect clients

with riders to facilitate a contract of carriage of persons using a motorcycle-for-hire;

{e) Multi-homing refers to an approach where an operator may accredit a particular

motorcycle-for-hire to more than one digital platform providers in delivering transport services;

(f) Online £-commerce platform provider (OEPP) refers to an entity which provides pre-
arranged transportation services for compensation using a digital platform to connect clients
with transport services to facilitate a contract of carriage of goods, including carriage of goods

over goods sold on said digital platform;

{g) Operator refers to the person in whose name the motorcycle-for-hire is registered;

(h) Parcel means a package or rectangular box, the dimension and weight of which is as
specified in the implementing rules and regulations of this Act, containing goods or some form
of transportable property intended for delivery to an addressee prominently displayed on at least

one (1) of its sides; and

(i) Rider refers to the driver of the motorcycle-for-hire.

SEC. 4. Scope and Application. — This Act shall apply to all aspects of the operation of
motorcycles used as a common carrier for the transportation of passengers or goods. For this
purpose, goods shall include parcels and mail. This Act shall not apply to motorcycles directly
owned by entities and used exclusively in the line of business for delivery of goods and other

services.

SEC. 5. Motorcycles-For-Hire as Common Carriers. ~The operation of motorcycles-for-hire
is imbued with public interest. As such, the same shall be governed by the applicable provisions
of the Civil Code of the Philippines and other pertinent laws, rules and regulations on common
carriers, particularly on the required degree of diligence to be observed in the course of
transporting passengers or goods, and on the presumption of culpability in case of breach of a
contract of carriage.

MTPPs and OEPPs should exercise extraordinary diligence in the accreditation and

supervision of motorcycle-for-hire operators and riders operating under their platforms.

SEC. 6. Registration of Motorcycles-For-Hire. — A motorcycle intended to be used as a


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motorcycle-for-hire must be duly registered with the Land Transportation Office (LTO) in
accordance with the requirements set forth in Section 7 of this Act. The LTO shall ensure the

roadworthiness of all motorcycles-for-hire before their registration, or any renewal thereof.

SEC. 7. Standards and Specifications of Motorcycles-For-Hire. — The Department of
Transportation (DOTr), upon the recommendation of the Department of Trade and industry (DT!),
Department of Environment and Natural Resources, LTO and Land Transportation Franchising
and Regulatory Board (LTFRB), shall prescribe in the implementing rules and regulations the
standards and specifications of motorcycles that may be allowed to operate as motorcycles-for-
hire, taking into consideration the safety of the passengers and riders and the protection of

goods.

No modifications shall be made on any motorcycles-for-hire, except for the installation of
the appropriate accessories, such as motorcycle bracket, top box, luggage carrier, saddlebag, step
board or foot rest, crash guards, speed limiter or monitoring devices, in accordance with the
standards approved by the DT, if applicable, and shall be used as reference by the LTO for
registration purposes. In case the DTI has no approved standards, the LTO, upon consultation and
agreement with all stakeholders, shall prescribe the same, taking into consideration road

worthiness and road safety, until such time the DTI has issued appropriate standards.

Within five (5) years upon the enactment of this Act, the DT! shall ensure the availability
of standards of all products and parts covered by this Act and its implementing rules and

regulations, and its future amendments or revisions.

SEC. 8. Authority to Grant Franchise to Operate Motorcycles-For-Hire. — The franchising

or grant of authority to operate motorcycles-for-hire shall be as follows:

(a) Motorcycles-for-Hire Under MTPPs. ~ In areas with an existing and operating MTPPs,
the authority and regulation of the operation of motorcycles-for-hire is vested in the LTFRB
through a franchise or certificate of public convenience (CPC). The LTFRB shall set forth in the
franchise the terms and conditions to be observed in the operation of motorcycles-for-hire. In
determining the number of franchises to be issued, the LTFRB shall take into consideration the
Local Public Transport Route Plan (LPTRP) or studies approved by the DOTr and their impact on
the other modes of public transportation. The franchise fee shall be determined by the LTFRB

after public consultation and shall only be implemented upon the approval of the DOTr.

(b) Motorcycles-for-Hire in Areas Without an Operating MTPP or OEPP. — The authority
and regulation of operation of motorcycles-for-hire in areas without an operating MTPP or OEPP

is vested in the LTFRB. The number of routes or motorcycles-for-hire that may be allowed to


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operate shall be determined in accordance with the LPTRP as recommended by the local

government unit (LGU) concerned.

The LTFRB shall provide a uniform guideline as to the standards of operation of

motorcycles-for-hire in consultation with the LGUs and stakeholders.

(c) Motorcycles-for-Hire Operating Under an OEPP. — Motorcycles-for-Hire operating
under an OEPP shall be regulated by the LTFRB in accordance with its mandate to issue CPC,
subject to compliance with the requirements provided under the applicable provisions of this

Act.

SEC. 9. Requirements for the Grant of a Franchise or Certificate of Public Convenience. ~ A
CPC shall only be issued to an operator upon submission or determination of the presence of the

following requirements:

(a)Proof of Filipino citizenship;

(b) Financial capacity the standard of which to be determined by the LTFRB;

{c) Certificate of Registration duly issued by the LTO;

(d) Insurance coverage for the death of or injuries suffered by the rider, passenger or any

third party or damage to property by reason or on occasion of its operation; and

(e) Tax Identification Number or Certificate of Registration as Common Carrier issued by

the Bureau of Internal Revenue (BIR), if applicable.

No operator shall operate more than one (1) franchise nor operate more than one (1)

motorcycle-for-hire in a franchise.

SEC. 10. Qualifications of Motorcycles-For-Hire Riders. - The LTO shall promulgate the
necessary guidelines setting forth the requirements for the issuance of a professional driver's
license, including the content of or the conduct of theoretical and practical examinations,
appropriate for the operation of a motorcycle-for-hire. Only riders possessing professional
driver’s license shall be allowed to operate motorcycles-for-hire. The MTPPs and OEPPs shall
provide and conduct a continuing safety training seminar for riders operating under their
respective platforms: Provided, that for motorcycles-for-hire riders operating outside the digital
platform providers, the conduct of continuing safety training seminar shall be conducted by the

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SEC. 11. Accreditation Requirements of MTPPs. - A MTPP or OEPP must be duly registered

with the Securities and Exchange Commission (SEC).

‘A MTPP or OEPP, as far as the operation of motorcycles-for-hire is concerned, before
being allowed to operate as such, must comply with the accreditation requirement of the LTFRB.
The DTI, LTFRB and Department of Information and Communications Technology (DICT) shall

jointly issue the guidelines that shall govern the operations of MTPPs and OEPPs.

MTPPs and OEPPs must possess and maintain the following minimum requirements for

its accreditation:

(a) Financial capacity the standard of which to be determined in the joint guidelines;

{b) SEC registration;

(c) BIR Tax Identification Number;

(d) An established Road Crash Quick Response System; and

(e) Capability to evaluate and determine the competence of riders through an established
training center, duly certified by the LTO and Technical Education and Skills Development
Authority (TESDA). The LTFRB may, as a requirement for renewal of accreditation, consider the
previous safety record of the MTPP as certified by the LTO during the effectivity of its

accreditation being applied for renewal.

SEC. 12. Operation of Motorcycles-For-Hire. - Motorcycles-for-hire may be allowed to
operate using the digital platforms, or on designated areas of operation. To maximize their
operation, motorcycles-for-hire shall not be bound by a single MTP or OEPP but shall be allowed
to adopt a multi-homing approach within a particular area of operation under the given franchise,
license or accreditation: Provided, That multi-homing operation shall be limited to two (2) digital
platforms but in no case shall a motorcycle-for-hire be allowed multi-homing operation
alternately between two (2) MTPPs or two (2) OEPPs: Provided, further, That a motorcycle-for-
hire accredited under any MTPP or OEPP platform may not be allowed to operate as motorcycle-

for-hire without using such platform.

Except for private use, any operation of motorcycle-for-hire in areas with operating MTPP

or OEPP outside the digital platform shall be considered colorum and, therefore, illegal.

For purposes of multi-homing operation of motorcycles-for-hire, the platform providers


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may not refuse an application for accreditation solely on the ground that an operator or rider is

accredited to another platform provider.

A motorcycle-for-hire may be allowed to carry, alternately, both passengers or goods.

The maximum number of hours that a rider may operate a motorcycle-for-hire shall be

specified in the implementing rules and regulations of this Act.

Motorcycles-for-hire shall operate at speeds allowable under Republic Act (RA) No. 4136,
otherwise known as the “Land Transportation and Traffic Code,” as amended, local ordinances
and other applicable laws: Provided, that in no case shall a motorcycle-for-hire operate beyond

sixty kilometers per hour (60kph).

SEC. 13. Fare Setting. — The fares, surcharges and other transportation fees that may be
charged by operators and MTPPs under which they operate for motorcycles-for-hire services

shall be in accordance with the fare structure and within the parameters determined, prescribed

and issued by the LTERB, in consultation with the motorcycle-for-hire industry stakeholders. The
fare structure shall take into consideration supply and demand components and shall allow
dynamic pricing on account of market variations based on location and time. The fare structure
shall also include the maximum percentage that can be charged by the MTPPs upon the operators
or riders for a particular transaction. The LTERB shall periodically review the fare structure and
parameters of determining the applicable fares. The booking system of MTPPs shall feature a
mechanism that enables clients to compare the transportation cost charged by each of the
available digital platforms.

In the case of motorcycles-for-hire operating outside the digital platforms, the fare shall
be determined by the LTFRB, after a public consultation with LGUs, the operators and other
stakeholders.

SEC. 14, Processing of Personal Data. - Any processing, collection, use and/or storage of
personal information and sensitive personal information involved inthe
registration/accreditation of motorcycles-for-hire, digital bookings, and other requirements
under this Act shall be made in accordance with the provisions of RA No. 10173, otherwise known

as the “Data Privacy Act of 2012.”

SEC. 15. Liabilities for Death, Injuries or Damage to Property. - The operator and/or the
MTPP or OEPP providing the digital platform at the time when the death, injury or damage to
property occurred in the course of operating a motorcycle-for-hire shall be jointly and solidarily
liable, with rights of subrogation against any party at fault: Provided, That the liability of the MTPP

or OEPP shall not exceed the amount of the insurance coverage of the operator.


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MTPPs and OEPPs shall be responsible for the insurance coverage of all its accredited
riders. The MTPP or OEPP shall likewise be responsible for the procurement of Personal
Passenger Accident Insurance for the protection of the passengers and/or goods, and, Third Party
Liability insurance to cover for damages caused to any third party in the course of operation of

motorcycles-for-hire.

SEC. 16. Road Crash Quick Response System. — Each MTPP or OEPP shail establish a quick
response team to provide immediate medical care or bring any person injured by the operation
of the motorcycle-for-hire booked through its digital platform to the nearest hospital or medical
facility. A function that will allow the rider or passenger to alert the quick response team during
emergency of road crash shall be part of the booking app options of the digital platforms. When
necessary, the MTPP or OEPP shall advance any amount necessary for the admission of such

Injured person or persons to the hospital or medical facility up to the insured amount.

SEC. 17. Enforcement. ~ To ensure the safe and secure operation of motorcycle-for-hire,
the LTO shall deputize LGUs and other relevant government agencies to assist in the enforcement
of traffic rules and regulations, and to monitor strict compliance with the provisions of this Act,
particularly, on the observance of carrying capacity and speed limits. The LTO shall establish a
centralized database to ensure the accurate recording of violations and road crashes involving
motorcycles-for-hire for the purpose of applying the penalties as well as other sanctions under
this Act. It shall publish quarterly and annual reports of such data on its website which shall be

accessible to the public.

Consistent with its mandate under RA No. 7924, entitled “An Act Creating The
Metropolitan Manila Development Authority, Defining Its Powers And Function, Providing Funds
Therefor And Other Purposes,” the Metropolitan Manila Development Authority (MMDA) shall
continue to exercise its traffic enforcement functions within Metro Manila in furtherance of this,
Act.

All violations related to the terms and conditions of the franchise shall be endorsed by
the LTO enforcement officers, deputized LGU enforcers and MMDA personnel to the LTFRB for

appropriate action,

The foregoing shal! not preclude the MTPPs or OEPPs from exercising the power to
impose sanctions such as suspension or blacklisting of their riders or operators on account of
violation of internal rules made known to the latter, acts detrimental to safety and security and
other reasonable or valid grounds.

SEC. 18. Penalties. —

(a) Any rider who operates a motorcycle-for-hire in violation of traffic rules and


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regulations, carrying capacity, and licensing requirement shall suffer the maximum penalty
imposed under the applicable law, ordinance, rule or regulation for such violation. in addition,
the LTO shall impose a penalty of suspension or revocation of the driver's license of an erring
rider commensurate to the gravity of the offense and frequency of commission. The table of

penalties shall be included in the implementing rules and regulations of this Act.

(b) An operator who allows a rider who does not possess a valid Professional Driver's
License to operate a motorcycle-for-hire shall, in addition to penalties under existing laws and
regulations, suffer a penalty of suspension or revocation of franchise, after due notice and

hearing

(c) The penal provisions of RA No. 7394, otherwise known as the “Consumer Act of the
Philippines,” RA No. 11967 or the “Internet Transactions Act of 2023,” and RA No. 10173, when
applicable, shall apply for acts or omissions committed in the course of motorcycle-for-hire

operation.

SEC. 19. Travel Demand and Operational Data. - To assist the DOTr in transportation
planning and management, the MTPPs and OEPPs shall, not later than thirty (30) calendar days

after the end of every year, submit to the DOTr their travel demand and operational data.

SEC. 20. Transitory Provision. — In order to provide a smooth transition in the full
implementation of this Act, the authority and accreditation granted to existing MTPPs, OEPPs

(6) months from the

and operators shall continue to be effective until their expiration or si

promulgation of the implementing rules and regulations of this Act, whichever comes later.

SEC. 21. Implementing Rules and Regulations. - Within ninety (90) days from the
effectivity of this Act, the DOTr shall, in coordination with the LTFRB, LTO, DTI, DICT, BIR, TESDA,
Department of Health, Department of the interior and Local Government, MMDA, and Philippine
National Police-Highway Patrol Group, and in consultation with stakeholders, promulgate the

necessary rules and regulations to carry out the implementation of this Act.

SEC. 22. Separability Clause. — If, for any reason, any provision of this Act is declared
invalid or unconstitutional, the remaining provisions not otherwise affected shall remain valid

and subsisting.

SEC, 23. Repealing Clause. ~ All provisions of laws, decrees, executive orders, presidential
issuances and other administrative rules and regulation, or parts thereof, which are incompatible
or inconsistent with the provisions of this Act are hereby repealed, amended or modified

accordingly.


SEC. 24. Effectivity. — This Act shall take effect fifteen (15) days after its publication in the

Official Gazette or in a newspaper of general circulation.

Approved,