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

HOUSE OF REPRESENTATIVES

5 No, 3901

H. B. No.

Introduced by Representative Ralph G. Recto

AN ACT
ESTABLISHING CARPOOL SERVICE IN THE COUNTRY, REGULATING ITS
USE AND OPERATION, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Slow moving traffic is a bane to the productivity, well-being and development,
not only of the individual but of the entire country. A study commissioned by Uber in
2017 entitled Unfocking Cities shows that a typical driver plying the streets of Manila
has to endure an additional 132% travel time during peak hours, which could
adversely affect commuter’s health and psychosocial well-being in the long run.
Another study made by Japan International Cooperation Agency in 2014 estimates
that the traffic congestion plaguing Metro Manila costs the Philippine economy more
than two billion pesos every day. Without intervention, the cost of severe traffic
congestion on the people and the economy could balloon to more than five billion
pesos a day by 2035.

The proposed measure seeks to thwart this looming crisis by utilizing a large,
untapped resource found in every gridlocked roadway in the country ~ empty
passenger seats in single-occupancy vehicles. This bill intends to promote carpooling
as an effective vehicle reduction scheme, as well as a straightforward way to
economize fuel consumption, decrease overall carbon footprint, and even lessen
traffic-induced stress. Through this bill that seeks to promote carpool services
especially in urban areas, the government can minimize the problem of traffic

congestion in a manner that is simple, pragmatic, and at almost no cost to taxpayers.


To promote the use of carpool services, this bill establishes the legal framework
for providing and accepting carpool services in the country. This bill classifies carpool
vehicles as private carriers, thereby reducing the bureaucratic requirement to provide
carpool services legally. The bill likewise allows the owners and/or drivers of carpool
vehicles to receive monetary contributions to cover expenses incidental to carpool
vehicle operation, such as fuel, oil, and lubricant expenses, toll fees, parking charges,
and vehicle maintenance costs. Government agencies are also authorized under the
bill to provide incentives to carpool owners and/or drivers, such as exemption from
vehicle volume reduction programs and designation of dedicated carpool lanes, among
others.

Moreover, this bill addresses key issues associated with commuting in carpool
vehicles. To warrant the roadworthiness of carpool vehicles, this bill compels the
owners to follow the recommended preventive maintenance schedule of the carpool
vehicles. To guarantee the safety and security of carpool passengers, this bill requires
clearances and other documents to ensure that carpool drivers can be identified and
found, and comprehensive motor vehicle insurance is provided to protect passengers
against accidents and other fortuitous events. To ensure the safety of carpool drivers
and the carpool vehicles, this bill limits the provision and acceptance of carpool
services within carpool associations empowered to scrutinize and monitor its own
members. Finally, to keep unscrupulous vehicle owners and drivers from exploiting
the carpool services to operate illegal colorum vehicles, this bill imposes a registration
requirement for carpool vehicles, a carpool trip limit of two trips per day, a carpool
passenger limit of six per carpool vehicle, and a Gas Fund contribution limit to be
defined by the Department of Transportation (DOTr).


Ultimately, this bill intends to achieve two purposes. First, this bill seeks to
provide a safe, dependable, environmentally-sound and sustainable mode of
transportation to the commuting public while decongesting traffic in Metro Manila and
in other urban areas in the country. Second, the bill seeks to improve the well-being
of the commuting public by reducing the level of carbon emissions from motor
vehicles, cutting the duration and the number of transfers in commuting to and from

work, and by diminishing the traffic-induced exposure to health risks.

In light of the foregoing, immediate passage of the bill is earnestly sought.

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

HOUSE OF REPRESENTATIVES

“No, 3251

H. B. No.

Introduced by Representative Ralph G. Recto

AN ACT
ESTABLISHING CARPOOL SERVICE IN THE COUNTRY, REGULATING ITS
USE AND OPERATION, 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 “Philippine Carpool
Service Act.”

Sec. 2. Declaration of Policy. — It is hereby declared the policy of the State to
promote a just and dynamic social order through policies that provide adequate social
services, promote full employment, a rising standard of living, and an improved quality
of life for all. Towards this end, the State shall develop mechanism to regulate the use
of carpool services not only as a safe, dependable, environmentally-sound and
sustainable mode of transportation, but also as a means to improve the well-being of
Filipino commuters and to decongest traffic in Metro Manila and in other urban areas
in the country.

Sec. 3. Definition of Terms, ~ For the purposes of this Act:

a) Carpool Service shall refer to a voluntary arrangement between two (2) to
seven (7) persons, including the driver of a particular vehicle, to make one-way or
round-trip journey in a single vehicle;

b) Carpool Association shall refer to a duly-registered non-stock, non-profit
organization created for the provision of carpool services to its members;

c) Carpool Driver shall refer to a duly-licensed operator of a motor vehicle that
provides carpool service in accordance with the provisions of this Act;


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d) Carpool Passenger shall refer to any bona fide member of a carpool
association who accepts carpool service from a fellow carpool association member in
accordance with the provisions of this Act;

) Carpool Trip shall refer to the vehicle trip that commences at the carriage
of the first carpool passenger and terminates upon the arrival of the carpool vehicle
to its intended destination;

f) Carpool Vehicle shall refer to a passenger car, utility vehicle or sports utility
vehicle registered for private use that provides carpool service in accordance with the
provisions of this Act;

g) Carpool Fund shall refer to an amount that may be collected by a carpool
driver and/or owner from the carpool passengers to cover the expenses incidental to
carpool vehicle operation such as carpool registration cost, fuel, oil and lubricant
‘expenses, parking charges, toll fees, and vehicle upkeep expenses;

h) Online Carpool Platform shall refer to electronic applications that allows
carpool drivers and passengers to search for and communicate with other carpool
drivers and passengers; and

i) Ownershall refer to the actual and legal owner of a motor vehicle, in whose
name such vehicle is duly-registered with the Land Transportation Office (LTO).

Sec, 4. Establishment of Carpool Service. - Owners of motor vehicles registered
for private use are hereby allowed to provide carpool services subject to the following
conditions:

a) The carpool services shall be provided and accepted only among members
of a carpool association on a purely voluntary basis;

b) The carpool owner and/or driver and the carpool passenger shall have a
common origin and destination;

) The carpool services shall be offered for a maximum of two (2) carpool trips
a day regardless of the number of carpool passengers;

d) The carpool driver or any carpool passenger shall not solicit for passengers
on any road, parking area, tollway entrance, public transport terminal, and other
similar facilities and establishments;

) The carriage of carpool passenger shall only be incidental to the carpool

driver's or owner's original purpose for the trip;


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f) The carpool driver shall inform the carpool passengers in advance about
the details of the trip, which shall include the date, time, pick up and drop off points,
travel route and Gas Fund contributions, if any;

g) The carpool driver shall not offer driving or vehicle rental services or display
any material or information to that effect; and

h) The owner of the vehicle shall register with the LTO as a carpool vehicle in
accordance with its rules and regulations,

Sec. 5. Classification of Carpool Vehicles. ~ Any provision of the law to the
contrary notwithstanding, carpool vehicles shall be classified as private carriers and
shall be subject to the provisions of Title II, Book IV of Republic Act No. 386, otherwise
known as the “Civil Code of the Philippines.”

Sec. 6. Motor Vehicle Registration. - Carpool vehicles shall be registered as
motor vehicles for private use. Registration for carpool service and subsequent
renewal of carpool service registration may be executed along the renewal of motor
vehicle registration in accordance with the rules and regulation of the LTO.

The documentary requirements for carpool service registration shall include the
following:

a) Proof of Filipino citizenship;

b) Valid LTO Official Receipt and Certificate of Registration of authorized unit/s
in the name of the Owner;

¢) Valid driver's license of authorized owner/s and/or carpool driver/s;

d) Valid Certificate of Employment, Certificate of Business Registration, or
Proof of School Registration under the name of the owner/s and/or authorized carpool
driver/s;

) Valid National Bureau of Investigation (NBI) or Philippine National Police
(PNP) Clearance;

f) Valid proof of billing addressed to the owner and/or driver;

9) Certificate of motor vehicle insurance coverage;

h) Proposed travel route from point of origin to the intended destination; and

i) Other documentary requirements as may be deemed necessary by the
Department of Transportation (DOTT) or the LTO.


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Sec. 7. Carpool Association. — Carpool drivers, owners, and carpool passengers
shall organize themselves into carpool associations to manage carpool services and
limit its provision to bana fide members of its organization. Carpool associations shall
be registered with the Securities and Exchange Commission in accordance with its
rules and regulations.

Sec. 8. Membership in Carpool Associations. - Membership in carpool
association shall consist of Regular Members and Associate Members. Filipino citizens
of legal age, holder of at least Non-Professional Driver’s License with Code 2 and 4
Restrictions, and who own, possess or operate at least one (1) carpool vehicle shall
be eligible for Regular Membership. Filipino citizens and resident aliens of legal age,
and who neither hold a driver's license nor own, possess or operate a carpool vehicle
shall be eligible for Associate Membership. Regular Members shall be accorded with
more representatives in the Board of Trustees and more voting power in accordance
with the articles of incorporation and by-laws of the carpool association.

Sec. 9. Requirements for Membership in Carpool Associations. - The carpool
association shall exercise due diligence in determining the identity of and accepting
prospective members. Prospective members shall be accepted into a carpool
association by a majority vote of its Board of Trustees in accordance with its articles
of incorporation and by-laws: Provided, That the Board of Trustees, prior to the
acceptance of prospective carpool association members, shall require the submission
of documents that include, but are not limited to:

a) Proof of identity of the prospective member;

b) Valid Certificate of Employment, Certificate of Business Registration, or
Proof of School Registration under the name of the prospective member;

Cc) Valid driver's license for prospective carpool driver;

d) Valid LTO Official Receipt and Certificate of Registration of the prospective
carpool vehicle;

e) Valid NBI or PNP Clearance;

f) Valid proof of billing addressed to the owner and/or driver; and

g) Other document deemed necessary by the Board of Trustees to ascertain

the identity of prospective carpool association members.


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The data and information provided by prospective carpool association members
shall be governed by the pertinent provisions of Republic Act No. 10173, otherwise
known as the “Data Privacy Act of 2012."

Sec. 10. Identification of Carpool Association Members. - The Carpool
association shall issue non-transferable identification cards to its bona fide members.
The identification cards shall be required to be shown prior to the provision or
acceptance of the carpool services and shall remain in the possession of the respective
members throughout the duration of the carpool trip.

Sec. 11. Conveyance of Carpool Passengers. ~ Carpool drivers are hereby
allowed to pick up carpool passengers in proximity to their point of origin and to drop
off carpool passengers in proximity to the carpool driver's intended destination:
Provided, That the carpool driver shall only be allowed to ferry carpool passengers
belonging to the same carpool association: Provided, further, That the carpool driver
shall only be allowed to ferry as many passengers as recommended by the vehicle
manufacturer: Provided, finally, That under no circumstances shall the number of
carpool passengers in a carpool vehicle exceed six (6) persons excluding the carpool
driver.

Sec. 12. Gas Fund Contribution. — The owner of the vehicle shall not accept or
charge any fare from carpool passengers, except for the contribution to the carpool
vehicle's Gas Fund on a non-profit basis: Provided, That the maximum amount of Gas
Fund contribution of carpool passengers shall not be higher than the estimated cost
of taxi service from the point of origin to the point of destination: Provided, further,
That the DOTr shall, in consultation with the Department of Energy (DOE), determine
the maximum rate of Gas Fund contribution that may be collected from carpool
passengers, taking into account the maximum number of allowable passengers as
provided in Section 11 of this Act, the distance and duration of travel from the point
of origin to the point of destination, and a realistic estimate of expenses incidental to
carpool vehicle operation: Provided, finally, That the DOTr shall adjust the rate of Gas
Fund contribution once every three (3) years after the effectivity of this Act using the
Consumer Price Index (CPI) for the Operation of Personal Transport Equipment, as
published by the Philippine Statistics Authority (PSA).



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Sec. 13. Maintenance of Carpool Vehicles. - The owners of carpool vehicles
shall follow the recommended preventive maintenance schedule of the vehicle
manufacturer: Provided, That the owners shall maintain a record documenting the
maintenance services performed on their vehicles and the dates when such
maintenance services were performed as attested to by the vehicle maintenance
service provider: Provided, further, That a copy of the carpool vehicle maintenance
service record shall be required by the LTO in the renewal of the carpool vehicle
registration.

Sec. 14. Insurance of Carpool Vehicles. - The owners of the carpool vehicles
shall be required to contract a comprehensive motor vehicle insurance from a
reputable insurance provider to cover the carpool vehicle and its passenger/s against
insurable risks: Provided, That a copy of the comprehensive motor vehicle insurance
for the carpool vehicle shall be required by the LTO in the registration and renewal of
the carpool vehicle registration.

Sec. 15. Violations. ~The following shall be constituted as violations of this
Act:

a) Engaging in carpool services without or with expired carpool registration;

b) Provision of carpool services without carpool association membership;

)_ Provision of carpool services to non-members of carpool association;

d) Exceeding the maximum daily carpool trips allowed;

e) Soliciting for passengers on any road, parking area, tollway entrance, public
transport terminal, and other similar facilities and establishments;

f) Exceeding the vehicle's recommended number of passenger or the
maximum number of passengers as provided in Section 11 of this Act, whichever is
lower;

g) Offering driving or vehicle rental services or displaying materials and
information to that effect;

h) Engaging in carpool services with invalid or expired motor vehicle
insurance;

i) Collecting more than the maximum Gas Fund contribution from carpool

passengers; and



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j) Other acts or omissions inconsistent with the provisions of this Act as may
be determined by the DOTr.

The DOTr and the LTO shall, after conducting public consultation, determine
the appropriate fines and penalties for the violation of any provisions in this Act.

Sec. 16. Carpool Passenger Complaints. - Carpool associations shall establish a
mechanism to receive and address complaints arising from the carpool services within
their respective associations. The DOTr shall likeiwse establish a system to receive
and address the complaints of carpool passengers against owners, carpool drivers,
and carpool associations in accordance with its rules and regulations.

Sec. 17. Carpool Incentives. - The DOTr, LTO, Metro Manila Council, local
government units, and other government agencies concerned may provide incentives
to promote the use of carpool services such as, but not limited to: designation of
dedicated carpool lanes, exemption from Expanded Unified Vehicular Volume
Reduction Program and other similar traffic schemes, and discounts on toll fees and
vehicle registration fees.

Sec. 18. Online Carpool Application. - Carpool associations or other third-party
developers may use electronic or online carpool application to provide seamless
connection between carpool association members: Provided, That owners and carpool
drivers can only provided carpool services in accordance with Section 4 of this Act:
Provided, further, That the total cost of using carpool platform and carpool services
shall not exceed the maximum Gas Fund contribution as provided in Section 12 of this
Act.

Sec, 19. Exemptions. - The carpool owner and/or driver shall secure at least a
Non-Professional Driving License from the LTO to operate carpool vehicles: Provided,
That carpool drivers who are employed as personal or corporate drivers, or who
operates motorcycles, buses, trucks or articulated vehicles shall be required to obtain
the appropriate driving license from the LTO.

The carpool vehicle shall be exempted from securing a Certificate of Public
Convenience or any public land transportation service franchise or authorization issued
by any government agency or instrumentality: Provided, That the carpool owner
and/or driver shall satisfy all the conditions stipulated under Section 4 of this Act:
Provided, further, That no provision in this Act shall be construed as allowing the


commercial operation of any motor vehicle registered for private use, or repealing,
amending or modifying any law, rule or regulation that compels the satisfaction of any
and all requirements prior to the operation of public land transportation services.

Sec. 20. Implementing Rules and Regulations. — Within sixty (60) days from
the effectivity of this Act, the DOTr shall, in consultation with the LTO and other
government agencies concerned, promulgate the necessary rules and regulations to
effectively implement the provisions of this Act.

Sec. 21. Separability Clause. - If, for any reason, any provision of this Act or
any part thereof shall be held unconstitutional and invalid, the other parts or provisions
of this Act, which are not affected thereby, shall remain in full force and effect.

Sec. 22. Repealing Clause. — All laws, decrees, orders, rules and regulations or
parts thereof inconsistent with any of the provisions of this Act are hereby repealed,
amended or modified accordingly.

Sec. 23. Effectivity. - This Act shall take effect fifteen (15) days after its
complete publication in at least two (2) newspapers of general circulation or in the
Official Gazette.

Approved,