nate
ecretar,

SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
Second Regular Session ) 18 MIR ID pq 0

s.no 1754 meee fp

Introduced by Senator Grace Poe

AN ACT
PROVIDING FOR A MAGNA CARTA FOR TRICYCLE DRIVERS
AND OPERATORS, INSTITUTIONALIZING MECHANISMS FOR ITS
IMPLEMENTATION AND FOR OTHER PURPOSES

Explanatory Note’

Way back in 1985, former President Ferdinand Marcos issued and/or signed
Letter of Instruction No. 1482 (“LOI 1482”) directing the “legalization of colorum
motorized tricycles”. The measure was crafted in recognition of the “role of the
tricycles as the principal mode of public transport especially in non-urban areas.” As
such, the government tasked the local governments to regulate the tricycles.

Up until the enactment of the Local Government Code in 1991, the regulation
of tricycles had been left to the judgment and discretion of local government units
(“LGUs”). As of today, the regulation of the operation of tricycles and the granting of
franchises in relation thereto are being carried out by the LGUs thru their respective
Sangguniang Bayan/Panglungsod, subject to the guidelines prescribed by the
Department of Transportation (DOTr).

The lack of a uniform set of rules regarding tricycle regulation and the
granting of permits and franchises had created a scenario in which the LGUs have
varying and differing requirements and fees. Such a situation has reportedly resulted
in the tricycle sector being subjected to extortion and unreasonable fees in some
LGUs as compared to some LGUs with a better set of rules. Moreover, the premise
that tricycles are only prominent in rural areas no longer holds true as the tricycle is
very much utilized in Metropolitan Areas all around the country. Furthermore, given
the worsening traffic situation, both in the urban and rural areas, conflicting policies
as regards the operation and routes of tricycles for each and every city or

"A counterpart bill in the House of Representatives has already been filed by the Representative of
the 3” District of Nueva Ecija, Hon. Rosanna V. Vergara.



municipality make it difficult for the national government to implement regulations
that will curb heavy traffic.

It also bears noting that the increase of the number of tricycles for hire in the
country is continuously growing each and every year — 591,254 in 2007 and 658,675
as of 2012 according to the Philippine Statistics Authority. As of 2012, tricycles for
hire account for 67.9 percent of the total vehicle for hire population. It could be
gleaned from these statistics that the demand for tricycles is constantly growing and
a good number of our countrymen take advantage of demand as they operate/drive
tricycles as their livelihood or source of additional income.

In view of the foregoing, this bill seeks to provide a uniform set of
requirements and reasonable fees that shall apply to all LGUs in relation to their
duties and tasks as regards their supervision and regulation of the operations of
tricycles in their respective jurisdictions. This bill likewise seeks to ensure the
protection of the individual and organizational rights of those in the tricycle sector
and require the appropriate government agencies to adopt policies and plans aligned
with the provisions of this proposed legislative measure, among others.

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IRACE POE



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SEVENTEENTH CONGRESS OF THE +): { tap
REPUBLIC OF THE PHILIPPINES )
Second Regular Session ) "8 MR 19 Pang

SENA
S. No. 155: RECE'. 9 _ |

Introduced by Senator Grace Poe

AN ACT
PROVIDING FOR A MAGNA CARTA FOR TRICYCLE DRIVERS AND
OPERATORS, INSTITUTIONALIZING MECHANISMS FOR Its
IMPLEMENTATION AND FOR OTHER PURPOSES.

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 “Magna Carta for
Tricycle Drivers and Operators Act of 2018."
Sec. 2. Declaration of Policies. — It is the policy of the State:

(a) To nurture and protect the interests of the tricycle sector by providing
them with adequate and timely social, economic and legal services, as well as
mechanisms that shall protect their rights and promote benefits that ensure their
dignified existence and economic advancement;

(b) To recognize, promote, and protect the rights of every worker in the
tricycle sector including the right to self-organization, the right to decent work, just
and humane working conditions, access to social protection, and the right to
represent their organizations in a continuing process of consultation and dialogue
towards maximizing the provision of a comprehensive package of reforms,
interventions, and services in accordance with their articulated needs and interests;

(c) To promote gender equity and equality through elimination of gender
stereotypes attached to this sector and redefining tricycle drivers as not merely
males but also females;



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(d) To protect women workers in the tricycle sector against gender-based
discrimination, exploitation, violence and abuse;

(e) To progressively eliminate child labor in the tricycle sector through the
Creation of more quality jobs for adults, effective enforcement of laws against child
labor, improved access to universal education and elimination of cultural factors that
tolerate child labor; and

(f) To develop the local economy through maximization of the potential and
contribution of the tricycle sector.

Sec. 3. Definition of Terms. — Pursuant to this Act, the following terms shall
mean:

(a) “Colorum” — a private vehicle operated for public utility purposes
without the benefit of a valid and existing special permit, provisional authority, or
franchise;

(b) “Motorized Tricycle Operators Permit” (MTOP) - the permit that
authorizes the holder to operate a tricycle for public transport;

(c) “Periodic maintenance” — the cleaning and replacing of parts that have
been exhausted of their effective service life;

(d) “Preventive maintenance” — the regular cleaning of the engine and
other related parts that affect its performance;

(e) — “Sanggunian” - the Sangguniang Panlungsod or the Sangguniang
Bayan, as the case may be;

(f) “Tricycle” - a motor vehicle propelled other than by muscular power,
composed of a motorcycle fitted with a single-wheel sidecar, or a motorcycle with a
two-wheel rear cab, the former having a total of three wheels and the latter having
a total of four wheels, otherwise known as the motorela,

(9) “Tricycle Operators and Drivers’ Association” or “TODA” -the
organization of tricycle operators and drivers in a given local government unit.

(h) “Tricycle Sector” — the drivers and operators of tricycles in the
Philippines for public transportation.



Sec. 4. Uniform Set of Requirements. — The local government units (LGUs)
having jurisdiction over the city or municipality where the tricycle is registered shall
impose no other requirement, restriction, or condition for its operation except the
following:

(a) For safety reasons, no tricycle should operate on national highways
utilized by four (4) wheel vehicles greater than four (4) tons and where normal
speed exceeds forty (40) kilometers per hour. The Sanggunian, however, may
provide exceptions if there is no alternative route.

(b) | Zones must be within the boundaries of the municipality or city.
Existing zones within more than one municipality or city, however, shall be
maintained; Provided that operators serving said zones shall secure MTOPs from
each of the municipalities or cities having jurisdiction over the areas covered by the
zone.

(©) A-common color for tricycles-for-hire operating in the same zone may
be imposed. Each unit shall be assigned and bear an identification number, aside
from its Land Transportation Office (LTO) license plate number.

(d) An operator wishing to stop service completely, or to suspend service
for more than one month, should report in writing such termination or suspension to
the Sanggunian which originally granted the MTOP. Transfer to another zone may be
permitted upon application.

(e) | The MTOP shall be valid for three (3) years, renewable for the same
period. Transfer to another zone, change of ownership of unit or transfer of MTOP
shall be construed as an amendment to an MTOP and shall require appropriate
approval of the Sanggunian.

(fp Operators shall employ only drivers duly licensed by the LTO for
tricycles-for-hire.

(g) No tricycle-for-hire shall be allowed to carry more passengers and/or
goods than it is designed for.

(h) A tricycle-for-hire shall be allowed to operate like a taxi service where
service is rendered upon demand and without a fixed route within a limited zone.

Sec. 5. Registration. - There shall be a simplified standard of registration
system in accordance with the framework and principles of this Act. The registration

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fee for the application for an MTOP shall not exceed one thousand pesos
(Php1,000.00) and it shall be valid for a three years. The said fee shall cover the
cost of the issuance of the license to operate, the filing fee, franchise fee, inspection
fee, fare adjustment fee, amendment, regulatory, and all other fees. No other fees
shall be exacted from the tricycle sector business activities or enterprise other than
the registration fee as mentioned above.

Sec. 6. One-Stop Shop for the Tricycle Sector. - All LGUs shall establish a
One-Stop Shop Center for the Tricycle Sector (the “Center”) which shall handle all
transactions and processing of the business permit applications within their
respective jurisdiction. The Center shall ensure that the processing of the MTOP of
the members of the tricycle sector shall be done on the day of their application and
the registration shall be released within thirty six (36) hours upon submission of the
complete requirements based on its checklist. To facilitate efficient and expeditious
processing of MTOP applications, LGUs shall formulate a uniform and simple
checklist of requirements for registration such us valid proof of identity (barangay
Clearance, certificate of residency, etc.) and flowchart of the procedure of
registration. LGUs shall be responsible in translating the checklist of requirements
and flowchart of procedure of registration in their own local dialect. LGUs shall cause
the posting of the checklist and flowchart of procedure of registration in at least
three (3) conspicuous areas, preferably public areas, in the community and cause
the publication of the same in the local newspaper if there be any.

Sec. 7. Rights and benefits of workers in the Tricycle Sector. - The members
of the Tricycle Sector shall have the following rights:

(a) _ Self-organization to collectively negotiate with government and other
entities in the promotion of their welfare and advancement of their interests free
from any political interference or favor;

(b) Informed participation in decision-making processes relevant to the
concerns of their sector through their legitimate organizations. Towards this end,
they shall be represented in all public hearings for laws, ordinances, or regulations
that will affect their sector;

(c) _ Safe working conditions with access to medical care services;



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(d) Freedom from any form of discrimination, violence, exploitation, or
harassment;

(e) Freedom from deprivation of property without valid cause and due
process of law;

(f) All concerned national government agencies, government financial
institutions, and local government units shall include in their plans, programs,
projects and activities efforts that are supportive of the concerns of the tricycle
sector;

(9) Each LGU shall create a grievance mechanism to deal with the
concerns of the members of the tricycle sector;

(h) The Social Security System and the Philippine Health Insurance
Corporation shall, within ninety (90) days from the effectivity of this Act, promulgate
guidelines for the mechanism of collecting premiums from members of the tricycle
sector. The Social Security System shall also inform its members from the tricycle
sector of loans that they can avail of;

(i) Any driver shall not be engaged to work in any hazardous work,
activity or undertaking, and neither shall he/she be exposed to hazardous working
conditions;

(j) All persons whether from the private or public sectors are prohibited
from committing acts of interference or coercion against a member of the tricycle
sector in exercising his or her rights as provided for in this section.

Sec. 8. Role of the Local Government Unit. - LGUs shall have the following
responsibilities:

(a) The Municipality or City, after consultation with the small transport
groups, the affected community, and other sectors or groups, shall identify and
designate viable routes and terminal of tricycle within the municipality or city. Viable
terminals shall be in proximity to public buildings, public markets, private markets,
commercial districts, or commercial establishments and other places which the public
frequently visits.

(b) The Sanggunian shall, within 90 days after the survey and/or
consultation in the preceding paragraph, pass an ordinance designating the viable
terminals of tricycles as specified in this Act. No designation of terminal, however,

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shall be conducted without prior consultation with the tricycle sector, the affected
inhabitants and other sectors. LGUs that have already established or designated
routes and terminals of tricycles prior to this Act are deemed to have complied with
this provision of the Act, provided that the aforesaid establishment or designation of
terminals have been undertaken after consultation with the relevant parties.

(c) LGUs shall also lead a tricycle maintenance program. This shall be
done by teaching the existing TODAs within their jurisdiction on preventive and
periodic maintenance. Technical and administrative capability shall be sourced
through partnerships with private institutions and through the Department of
Science and Technology.

(d) Vocational education on auto-mechanics and related courses like
engine repair and maintenance shall also be developed by the LGUs in cooperation
with the Department of Labor and Employment and the Technical Education and
Skills Development Authority.

(e) There shall be a mandatory orientation on traffic management and
tules at the LGU level. The LGU shall require all tricycle drivers to undergo this
orientation as pre-requisite for the issuance of their respective MTOPS. After the
complete orientation of all drivers, a pilot run shall be made to assess the traffic
situation.

(f) LGUs shall also eliminate illegal or colorum tricycle units.

(g) LGUs shall provide for alternative livelihood and skills-training
programs to allow tricycle drivers to explore more economically rewarding sources of
income.

(h) Finally, LGUs shall pursue and implement a comprehensive, rights-based,
Participatory and gender responsive framework for workers in the tricycle sector that
includes but is not limited to:

(1) Putting in place policies and programs that will bring members of the

tricycle sector to the economic and social mainstream;

(2) Pursuing structural reforms in all relevant levels of LGUs by creating
committees, special offices for development and protection of workers in
the tricycle sector and supporting their representational rights through
their organizations;



(3) Extending coverage of accessible and affordable social security and health

care benefits to workers in the tricycle sector; and

(4) Exacting responsibility on the part of the tricycle sector workers provided

that the state shall recognize their rights and put in place responsive,
transparent and accountable mechanisms to ensure the protection,
promotion and realization of those rights.

Sec. 9. Policy on the Impounding of Vehicle and Imposable Penalties. -
Tricycles shall not be impounded, confiscated or destroyed for mere violation of
license or registration or traffic rules and regulations unless the said vehicle was
utilized in the conduct of criminal activity/ies. In case of mere violation of traffic
rules and regulations, a traffic violation ticket shall be issued to the erring driver
without impounding the said vehicle. The responsible person or officer who violated
this Section shall be administratively liable under this Act. Nothing herein shall
prohibit the aggrieved member of the tricycle sector from initiating a criminal or civil
action against the responsible person or officer for violating this provision, whenever
such action is applicable.

The imposable penalties for tricycle drivers who are found to violate traffic
rules or regulations shall be limited to fifty percent of the fine or penalty that can be
imposed on drivers of four-wheeled vehicles.

Sec. 10. Phase-in of More Efficient Engines. — Within thirty (30) days after the
effectivity of this Act, the Department of Science and Technology (DOST) and the
Department of Transportation (DOTr) shall partner to create a continuous program
to develop more efficient engines and cleaner technologies to be used by the tricycle
sector.

Sec. 11. Coordination between Local Government Units and the DOTr. - The
implementation of the national policy as regards curbing traffic must be taken into
consideration in the enforcement of this Act. The DOTr shall ensure that its
guidelines for the regulation of tricycles by LGUs must be mindful of the state of
traffic in the country. Furthermore, the DOTr must efficiently and meaningfully
coordinate closely with the LGUs as regards the regulation of the tricycle sector.

Sec. 12. Funding. - An initial appropriation of FIVE HUNDRED MILLION
PESOS (Php500,000,000.00) is hereby appropriated for this Act. Thereafter, the

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amount needed for the effective implementation of this Act shall be included in the
General Appropriations Act.

Sec. 13. Penalties. - Any person who shall willfully interfere with, restrain or
coerce any member of the tricycle sector in the exercise of his/her rights or shall in
any manner act in violation of Sections 8 or 10 of this Act shall, upon conviction, be
punished by a fine of not less than Fifty Thousand Pesos (P50,000.00) but not more
than Five Hundred Thousand Pesos (P500,000.00) or imprisonment not exceeding
one (1) year or both, at the discretion of the court.

If the offender is a public official, the court may, in addition to the penalties
provided in the preceding paragraph, impose the penalty of perpetual disqualification
from public office.

Sec. 14. Implementing Rules and Regulations. -The DOTr shall issue the
Implementing Rules and Regulations of this Act within ninety (90) days from its
effectivity. The DOTr shall also be in charge with the allocation of the fund for
subsidizing the SSS or Philhealth premiums of the members of the tricycle sector and
the programs that will benefit them.

Sec. 15. Separability Clause. — If any provision, or part hereof, is held invalid
or unconstitutional, the remainder of the law or the provision not otherwise affected
shall remain valid and subsisting.

Sec. 16. Repealing Clause. - Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule, ordinance, or
regulation contrary to or inconsistent with, the provisions of this Act is hereby
repealed, modified, or amended accordingly.

Sec. 17. Effectivity Clause. - This Act shall take effect fifteen (15) days after
its publication in at least two (2) newspapers of general circulation.

Approved,