EIGHTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES —)
First Regular Session J
HOUSE OF REPRESENTATIVES
House Bill No4197

Introduced by Representative Victor A. Yap

EXPLANATORY NOTE

In the Philippines, motorized tricycle is defined as the most popular means of transport in
small towns and cities, mostly in the rural area. Due to its size and being relatively cheaper to own
compared to the jeepney, tricycle has been the choice vehicle in urban and rural settings.

‘Through Letter of Instructions No. 1482 of then President Ferdinand E. Marcos, the
legalization of colorum motorized tricycles was established in recognition of tricycles’ important
role in the existing public transportation hierarchy in municipalities. However, even with the
existence of this LOI and the enactment of the Local Government Code in 1991, which left the
regulation of tricycles to the judgment and discretion of local government units (LGUs), a uniform
set of rules concerning tricycle regulation and the granting of permits and-franchises are still
lacking in the country.

To be able to avoid problems brought about by varying requirements, fees, as well as
conflicting policies as regards the operation and routes of tricycles for cities and municipalities, a
bill empowering the LGUs to regulate the operation of tricycles is needed.

This proposed measure provides the cities and municipalities the power to regulate the
operation of tricycles and grant permits for the operation thereof within their respective territorial
jurisdictions, subject to the guidelines to be prescribed by the Department of Transportation
(DOTr), the Land Transportation Office (LTO) and the Land Transportation Franchising and
Regulatory Board (LTFRB). This bill, to be known as the Magna Carta for Tricycle Drivers and
Operators Act, extends coverage of accessible and affordable social security, health care benefits
and insurance coverage to workers in the tricycle sector.

Furthermore, this measure proposes for the following significant provisions:

1. Simplified procedure of registration and issuance of Motorized Tricycle Operators
Permit;

2, One-Stop Shop Center for the tricycle sector to handle all transactions and processing of
the business permit applications within their respective jurisdiction;

3. Defined rights and benefits of workers in the tricycle sector; and

4, Responsibilities of the cities and municipalities, such as: identification and designation of
viable routes and terminals of tricycles within the municipality or city, and leading a
tricycle maintenance program, among others.

In recognition of the roles and contributions of members of the tricycle segtor, the passage
of this proposed bill is earnestly requested.

VICTOR A. YAP
Representative, 2nd District of Tarlac


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EIGHTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES)
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No. 4197

Introduced by Representative Victor A. Yap

i

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 2019."

Sec. 2. Declaration of Policies. - It is the policy of the State:

(@) 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, 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;

(9 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;

(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

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


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

a. Colorum - a private vehicle operated as a public utility 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;

©. 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.

¢. Sanggunian - the Sangguniang Panlungsod or the Sangguniang Bayan, as the case

may be;

£. Tricycle - a motor vehicle 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.

g. 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 for public transportation in
the Philippines.

Sec. 4. Authority to Regulate and to Grant MTOP. - Subject to the guidelines to be
prescribed by the Department of Transportation (DOTr), the Land Transportation Office (LTO) and
the Land Transportation Franchising and Regulatoty Board (LTFRB), the cities and municipalities
shall have the power to regulate the operation of tricycles and grant permits for the operation
thereof within their respective territorial jurisdictions.

Before it can issue the MTOP, the concerned LGU is required to submit a tricycle operation
plan which includes, among others, the tricycle routes and zones, designation of terminals and
maximum number of tricycles operating within its jurisdiction. Such plan shall be subject to the
approval of the DOTr and must comply with the guidelines promulgated therefor with the end goal

of ensuring overall efficiency, integration and safety of the transportation system.

Sec. 5. 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 4-wheel
vehicles greater than four (4) tons and where normal speed exceed forty (40) kilometers per hour.
However, the concerned LGU may provide exceptions if there are no transportation services or

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modes servicing the said route, either along the highway or crossing the same, other than tricycles,
subject to the approval of the DOTr: Provided, however, that when such operation is allowed, the
LGU Is mandated to provide appropriate signages, marks for lanes and other safety features to
guide and protect the tricycles utilizing the highways.

b. Zones must be within the boundaries of the municipality 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 and/or cities having jurisdiction over the
areas covered by the zone.

cA 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 LTO license plate number.

4d. An operator wishing to terminate or suspend its service for more than one month should
report in writing such termination or suspension to the Sanggunian which originally granted the
Top.

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

toan MTOP and shalll require appropriate approval of the Sanggunian.

f£ Operators shall employ only drivers possessing professional licenses duly issued by the
LTO. For this purpose, the LTO shall issue guidelines, including theoretical and practical
examinations, appropriate for drivers of tricycles.

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, aside from
rendering services in the designated terminals, the tricycle can be flagged-down or engaged by

passengers on the road within its authorized zone of operation.

Sec. 6. Registration. - There shall be a simplified procedure of registration and issuance of
MTOP in accordance with the framework and principles of this Act. The registration fee for the
application for an MTOP shall not exceed one thousand pesos (Php1,000.00). The validity of MTOP
shall be for three years. The said fee shall cover the cost of the issuance of the MTOP, 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. 7. 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


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the processing of the MTOP shall commence on the day of their application and the registration

shall be released within forty eight (48) hours upon submission of the complete requirements.

To facilitate efficient and expeditious processing of MTOP applications, LGUs shall formulate
a uniform and simple checklist of requirements for registration such as 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. 8. 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 and insurance;
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;

g. 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, including machinations to

influence political and/or religious beliefs of the member of the tricycle sector.


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Sec. 9. Role of the Local Government Unit - Subject to the operating conditions in this Act
and the guidelines to be promulgated by the DOTr, LTO and LTFRB, cities and municipalities 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 terminals of
tricycles within the municipality or city. Viable terminals shall be in proximity to public buildings,
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, 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.

¢. 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 (DOST).

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 (DOLE) and the Technical Education and Skills Development Authority (TESDA).

e. There shall be a conduct of a mandatory Tricycle Drivers Safety Program at the LGU level.
The content and structure of the Tricycle Drivers Safety Program shall be formulated by the DOTr,
LTO, LTFRB and other relevant government agencies. The LGU shall require all tricycle drivers
within its jurisdiction to undergo this orientation. To complement this, the LTO and LTFRB shalt

include a Motorist Awareness Program in all its safety trainings.
£.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. 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;


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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. 10. Policy on 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 activities. 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 whenever such action is
applicable.

The imposable penalties for tricycle drivers who are found to violate traffic rules or
regulations shalll be limited to fifty percent of the fine or penalty that can be imposed on drivers of

four-wheeled vehicles.

Sec. 11. Phase-in of More Efficient Engines. - Within thirty (30) days after the effectivity
of this Act, the DOST and the DOTr shall partner to create a continuous program to develop more
efficient engines and cleaner technologies that may be used by the tricycle sector, at the own

initiative or volition of tricycle drivers and/or operators.

Sec. 12. 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. 13. Mandatory Membership in SSS and PhilHealth, Life and Accident Insurance,
and Legal Assistance. - The Social Security System (SSS) and the Philippine Health Insurance
Corporation (PhilHealth) 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.


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Tricycle drivers shall, in addition to SSS and healthcare coverage, be provided accident
insurance coverage to compensate for damage or injury acquired such as death, disability, limb
amputations, loss of sight, hearing, and speech; including the loss of thumb or the index finger.

Tricycle drivers are also entitled to legal assistance in the exercise and pursuit of their

rights herein granted.

Sec. 14. Funding. - An initial appropriation of One Billion Pesos (Phpl,000,000,000.00) is
hereby appropriated for this Act. Thereafter, the amount needed for the effective implementation of
this Act shall be included in the General Appropriations Act.

Sec. 15. Penalties. - (a) Any person who shall wilfully 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, 9 or 10 of this Act shall, upon conviction, be punished by a fine of not less
than Fifty Thousand Pesos (Php50,000.00) but not more than Five Hundred Thousand Pesos
(Php500,000.00) or imprisonment not exceeding one (1) year or both, at the discretion of the court.

(b) A driver who operates a tricycle without the necessary MTOP to be observed by the
tricycle sector in pursuit of cleaner technologies and in accordance with Republic Act 8479,
otherwise known as the “Clean Air Act", including any who incurs delinquency in payment of fees
that is tantamount to an incomplete application for an MTOP, operates in highways without valid
authorization, transports passenger and/or goods beyond the limitations on the number of
passengers and on load capacity, or operates a tricycle not compliant with environmental laws shall
be punished by a fine of not less than Five Hundred Pesos (Php500.00) but not more than Two
‘Thousand Pesos (Php2,000.00) or the impoundment of the tricycle by an enforcement agency for a

period of two (2) months.

(©) An operator who operates without thé necessary MTOP or authority to operate in
highways or employs a driver without the requisite license to drive a tricycle, including those below
the age of majority, or allows a driver to operate a tricycle that is not roadworthy or with
unauthorized modification affecting vehicle safety, shall be punished by a fine of not less than Five
Hundred Pesos (Php500.00) but not more than Two Thousand Pesos (Php2,000.00). The second
and succeeding offenses shall warrant the revocation of the MTOP or franchise and the perpetual
disqualification from being issued the said privilege.

(@) If the offender is a public official, the court may, in addition to the penalties provided in

the preceding paragraph, impose the penalty of disqualification from office.

Sec. 16. Implementing Rules and Regulations. - The DOTr, in coordination with the LTO,
LTFRB, SSS, PhilHealth, DOLE, TESDA, DOST, DTI and the Department of the Interior and Local
Government (DILG), shall issue the Implementing Rules and Regulations (IRR) of this Act within
ninety (90) days from its effectivity. The IRR shall include the guidelines for the allocation of the


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fund for subsidizing the SSS or PhilHealth premiums of the members of the tricycle sector and the

programs that will benefit them.

Sec. 17. 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. 18. Repe:
etter of instruction, administrative order, rule, ordinance, or regulation contrary to or inconsistent

1g Clause, - Any law, presidential decree or issuance, executive order,

with, the provisions of this Act is hereby repealed, modified, or amended accordingly.

Sec. 19. Effectivity Clause. - This Act shall take effect fifteen (15) days after its publication

in at least two (2) newspapers of general circulation.

Approved,