Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 4734

Introduced by REP. JULIETTE T, UY

EXPLANATORY NOTE

‘This bill aims to enable local government units (LGUs) to regulate the operation of motorcycles-
led abal-babal ~ in their respective areas of jurisdiction,

for-hire ~ commonly

‘The local people in the provinces, most especially those residing in the hinterland areas and even
in some urban centers in Luzon, the Visayas and Mindanao, have only the motorcycles-for-hire as
ansportation for passengers and small cargo.

the only mode of

Despite the acceptance of motorcycles-for-hire and the now common operations of the same by
the traveling public, existing laws consider these as illegal. Current transportation laws prohibit
the registration of motorcycles-for-hire since Republic Act 4136, enacted on June 20, 1964,
classifies motoreyeles for private use only

Since habatbabal cannot be registered as vehicles for hire, the proliferation of the same is a clear
and present danger for the riding public. ‘This is because passengers who get injured or hurt in
idents involving this mode of transportation cannot claim medical benefits or teimbursements
since motorcycles-for-hire are not covered by any form of insurance, Iababhabal operators and
drivers are henee vulnerable to a host of traffic violations and fines, legal suits and even
unscrupulous traffic enforcers

A policy solution to this problematic reality bas been long overdue. Regulating the business
operations of motoreycles-for-hire shall definitely protect the riding public, the operator and the
driver, Regulating babathabal operations shall enable operators of the same to register theit
motorcycles as public transport and thereby be covered by the law on common carriers.

The safety of the riding public and the maintenance of existing low-cost transport in the rural and
remote areas is the overriding objective of this measure. This bill shall ultimately authorize
municipalities and cities to grant franchises for the operations of habal-habal or motoreycles-for-

hire in their respective jurisdictions

‘The immediate passage of this bill is carnestly sought.

Approved



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
Second Regular Session

4794

HOUSE BILL No.

Introduced by REP, JULIETTE T. UY

AN ACT
REGULATING MOTORCYCLES-FOR-HIRE OR HABAL-HABAL, THEREBY
AUTHORIZING CITIES AND MUNICIPALITIES TO GRANT FRANCHISES FOR
THEIR OPERATIONS, AMENDING FOR THE PURPOSE SECTIONS 447 AND 458
OF REPUBLIC ACT NO. 7160, AS AMENDED, OTHERWISE KNOWN AS THE
LOCAL GOVERNMENT CODE OF 1991, AND SECTION 7 OF REPUBLIC ACT 4136,
OTHERWISE KNOWN AS THE LAND TRANSPORTATION AND ‘TRAFFIC CODE

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

YON 1, Short Title. = ‘this Act shall be known as the “Motorcycle-For-Hire Act of 2014."

SECTION 2, Declaration of Polic

= Itis the policy of the State to safeguard public interest,
provide and regulate basic services, and promote safe, coordinated and efficient transportation
services to the people, The roads and trails in the rural, mountainous areas of the country’s
provinces, and even side streets in some urban centers are not passable by tricycles and four-
wheeled vehicles. The mode of transportation accessible to the people shall be recognized by the
State in reality and in actual policy

‘icularly the cities and municipalities, who are at the frontline in the
ations of motorcycles

the local governments,
delivery of government services, are hereby mandated to regulate the op
for-hire known in the provinces as babal-habal

SECTION 3. Definition of Motorcycle-for-Hire. ~ For the purposes of this Act, motorcyele~
for-hire or habal-habal shall denote any motorcycle that is designed and customized to carry
passengers, goods and other small cargo for a fee as a common castivr. Motoreycles-for-hire o
habal-babal operate in the rural and urban areas of the country, especially in hilly, sloping and
mountainous bu
transportation

angays that are inaccessible to tricycles, jeepneys, buses and other forms of

SECTION 4. Amendments. ~ Section 447 of Republic Act No. 7160, as amended is hereby

amended to read as follows:

“sg

C. 447. Powers, Duties, Functions and Compensation. — (a)
“xx,

(3) (vi) Subject to the guidelines prescribed by the Department of ‘Transportation and


Communications, regulate the operation of MOTORCYCLES-FOR-HIRE OR
HABAL-HABAL AND tricycles and grant franchises for the operation thereof within
the territorial jurisdiction of the municipality;”

Section 458 of Republic Act No. 7160, as amended is heteby amended to read as follows:
‘SEC. 458. Powers, Duties, Functions and Compensation. — (a)
“xxx,
(3) (vi) Subject to the guidelines prescribed by the Department of ‘Transportation and
Communications, regulate the operation of MOTORCYCLES-FOR-HIRE OR

HABAL-HABAL AND tricycles and grant franchises for the operation thereof within
the tertitotial jurisdiction of the city, and”

Section 7 of Republic Act No. 4136 is hereby amended to read as follows:

“SEC. 7, Registration Classification, ~ The classification of vehicles shall be:

“(b) For Hire. ~ Motor vehicles registered under this classification are those covered by
certificates of public convenience, or special permits issued by the Board of
Lransportation, AND IN THE CASE OF MOTORCYCLES-FOR-HIRE OR
HABAL-HABAL, \ FRANCHISE ISSUED BY THE CITY OR MUNICIPAL
LOCAL GOVERNMENT UNIT and shall be subject co the provisions of the Public
Service Act and the rules and regulations issued thereunder, as well as the provisions of
this /

“xxx,

SECTION 5, Local Franchise. - ‘Lhe municipality or city shall receive, process and evaluate all
applications for the grant of franchise to operate motorcycles-for-hire or habal-habal within theit
territorial jurisdiction.

SECTION 6, Documentary Requirements. - Any person applying for a franchise to operate
motoreycles-for-hire or babal-habal shall submit the following:

&. Certification from the Punong Barangay that the applicant is a bona Jide resident of the
barangay within the city or municipality;
Official receipt and Certificate of Registration of the motorcycle unit;

c. A deed of undertaking by the owner and/or operator of the unit applied for will be
operated only within the said city or municipality; and

d._ Insurance coverage for third party liability

SECTION 7. Franchise Issuance. - After evaluation and favorable consideration of the
application, the same shall be endorsed to the Sangguniang Panglungsod or Sangguniang Bayan
for the issuance of a franchise for the operation of motorcycle-for-hire or habal-habal within the
territorial limits of the city or municipality. ‘Ihe franchise shall indicate the places and/or routes


where the motoreycle-for-hire or habat-habal is authorized to operate, the maximum number of
allowable passengers, the maximum cargo weight limi, and the fates co be charged.

The authority granted local government units to regulate motorcycles-for-hite or Aabal-habal shall
be limited and confined to the boundaries of the city or municipality. ‘The local government unit
shall only grant franchises to motorcycles-for-hite or habal-habal operating within the city and
municipality and owned by bona fide residents thereof.

In cases wherein travel between two or more areas governed by nvo or more local government
units can only be possible via motorcycles-for-hire or habal-habal due to the absence of any other
mode of public transportation, the cities and municipalities traversed by motoreycles-for-hire or
Jabal-habal shall execute a Memorandum of Agreement that shall delineate the terms of reference
on how registered motorcycles-for-hire or babal-habal shall operate in routes that cover two or
more boundaries,

SECTION 8, Issuance of Plate. — Upon receipt of the franchise to operate duly issued by the
city or municipality, the Land ‘Transportation Office (TO) shall issue the new “for hire” plate to
the motorcycle-for-hire or fabal-babal franchisee, upon the surrender of any previously issued
plate, as the case may be.

SECTION 9. Prohibitions. ~ Motorcycles-for-hire or habai-habal are prohibited from operating,
along national highways or other roads where the allowed maximum speed is greater than forty
(40) kilometers per hour, except to cross the same, Provided, That they may be allowed, under strict
limitations, to use the said highways and roads if special lanes are available for the operations
motoreycles-for-hire or babal-babal

SECTION 10. Penalties. ~ The owner of a motoreyele-for-hire or habul-habal who fails co secure
a franchise to operate shall be fined the amount of not less than ‘Three ‘Thousand Pesos
(3,000.00) up t not more than Five ‘Thousand Pesos (P5,000.00) and the motorcycle unie shall
be impounded by the local government unit until the registration of the same. These set of
penalties shall be subject t0 the review and appropriate revisions by the Department of
Transportation and Communications every three (3) years after the effectivity of this Act

SECTION 11, Implementing Rules and Regulations, - ‘The Secretary of ‘Transportation and
Communications, in coordination with the Leagues of Cities and Municipalities, shall within sixty
(G0) days after the effectivity of this Act, issue the appropriate rules and regulations for the
implementation of the provisions of this Act

SECTION 12. Severability “The provisions of this Act are declared to be severable, and if any
provision, word, phrase, or clause of this Act or the application thereof to any person or entity
shall be held invalid, such invalidity shall not affect the validity of the remaining portions of this
Act.

SECTION 13. Repealing Clause, ~ All laws, presidential decrees, executive orders, presidential
proclamations, rules and regulations, administrative orders, memorandum. circulars, or parts
thereof inconsistent with this Act are also hereby repealed or modified accordingly

SECTION 14. Efectivity. ~ This Act shall take effect after fifteen (15) days from publication in
at least two (2) newspapers of general circulation.

Approved,