Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
Nineteenth Congress
First Regular Session
HouSH BII:I: Nb.   6098
Introduced by Honorable Romulo "Kid" V. Pefia, Jr.
EXPLANATORY NOTE
Transport is a key  sector in the Philippines which comects people and  ..
economic activities across the archipelago. However, mobility, especially in the
capital  city  -  Metro  Manila,  has  become  more  difficult,  if  not  impossible
throughout the years.
'      It is evident that traffic congestion in Metro Manila and other urban areas
is a modem-day problem that needs to be addressed immediately and efficiently.
In a study by TomTom (TOM2), a location technology specialist company, it was
found that Metro Manila motorists and commuters lost 188 hours to traffic jam
in 2020. This has further made the city infamous for having the worst traffic
situation in Southeast Asia and 9th worst in the world.
It is alarming and discouraging when one understands that this has been a
prevalent norm and daily routine of regular Filipino commuters, many of whom
are students and workers. Hence, motorcycle ride-sharing services have seen all
increase in demand as it presents itself as an alternate and practical mode of
transportation.  In rural areas, motorcycles-for-hire or feczbczJ-¢zczBcz/ also provide
transportation  services  to certain road networks  inaccessible to four-wheeled
vehicles.
These  motorcycle  ride-sharing   services  and  hobczJ-haz7cz/,   aside  from
significantly  decreasing  travel  time,  are  also  cheaper  altematives  over  four-
wheeled ride hailing platforms. They also promote inclusivity in mobility and
increase  productivity   among  the  working  class  who  are  majority   of  the
commuters in the Philippines.


Affordability,   inclusivity,   productivity,   and   mobility   -   these   are
compelling reasons why motorcycles have been preferred and accepted by the
commuting public. However, these motorcycle ride-sharing services and feciz7cz/-
feczbczJ remain unregulated as public utility vehicles, and those concerns have been
directed toward the roles of operators and riders with regard to passenger safety
and welfare.
This   bill   hereby   seeks   to   provide   safe,  sufficient,  and  economical
altemative  mode  of  public  transport  by  allowing  and  regulating  the  use  of
motorcycles-for-hire,   thus   ensuring   that   accessible   transportation   remains
available  to  Filipino  commuters.  Moreover,  the  proposed  measure  aims  to
establish mechanisms and guidelines in regulating all the operational aspeets of
motorcycles-for-hire.
During the  18th Congress, the Committee on Transportation submitted a
consolidatedbillrelatingtotheregulationofmotorcycles-for-hirewhichwasthen
passed on 3rd reading in the House of Representatives. Although transmitted to
the Senate for its consideration, further progress relating to the matter has yet to
materialize. Hence, the attached bill is a refilling of the version approved by the
House of Representatives.
In view of the foregoing, passage of this bill is earnestly sought.
RTife#:ENrfuL,Tin.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
Nineteenth Congress
First Regular Session
HOusEB|LL`fia:1      6098
Introduced by Honorable Romulo "Kid" V. Pefia, Jr.
AN ACT
REGULATING THE OPERATION OF MOTORCYCLES-FOR-
HIRE
Be it enacted by the Senate and House Of Representatives Of the Philippines
in Congress assembled:
SECTION 1. Title. -This Act shall be known as the "Motoreycles-for-
Hire Act".
SEC. 2. Declaration of Policy. - The State recognizes the importance of
transportation in economic development. The recent innovations in technology
have opened an opportunity for alternative modes of public conveyance, such as
motorcycles-for-hire,tothriveasareliableandaccessiblemodeoftranaportation.
However,despiteitspromiseofconvenienceandfastservice,itmustberegulated
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  alternative  mode  of  transportation  that  is  sufficient,  safe,   secure,  and
economical.
Toward 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)  A4oforc);c/e  refers  to  any  two  (2)-wheeled  motor  vehicle  without
appendages;
b) A4lotoreyc/es-/or-fez.re  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;


c) A4l#/fJ.-foomj.#g refers to an approach where an operator may accredit a
particular motorcycle-for-hire to more than one transport network company or
Online E-commerce Platform Provider allowing the same to utilize more than one
digital platform in delivering transport services;
d)   O#/I.#e E-com]#erce p/crf/07w! provz.cJer refers to a natural or juridical
person whose primary business is to provide the digital platform that cormects
online buyers and online sellers to facilitate the sale of products, goods or services
through the internet;
e) Opercrfor refers to the person in whose name the motorcycle-for-hire is
registered;
f) Rz.c7er refers to the driver of the motorcycle-for-hire; and
g) rransporftzfro# 73etwo#k co"per'!)/ refers to an entity which provides pre-
arranged  transportation  services  for  compensation  using  an  internet-based
technology application or digital platfom technology to  connect clients with
riders to facilitate a contract of carriage using a motorcycle-for-hire.
SEC. 4. Scope and Application. - This Act shall apply to all aapects of
the operation of motorcycles used as common carrier for the transportation of
passengersorgoodswhichshallincludeparcelsandmail.ThisActshallnotapply
to motorcycles directly owned by entities and used exclusively in the line of
business for delivery of goods and other services.
SEC. 5. MotorcyclesiFor-Hire as Common Carriers. - The operation of
motorcycle-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 presuniption of culpability in case of breach of a
contract of carriage. A transportation network company (TNC) or an Online E-
Commerce  platform   provider  (OEPP)   should  exercise   due   diligence  and
reasonable care in accrediting motorcycle-for-hire operators and drivers that shall
operate under their platforms.
SEC. 6. Registration of Motorcycles-For-Hire. -A motorcycle intended
to be used as a in motorcycle-for-hire must be duly registered with the Land
Transportation Office a,TO) 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-IIire. - The
Department   of  Transportation   (DOTr),  upon   the  recommendation   of  the
Department of Trade and hdustry - Bureau of Philippine Standards @TI-BPS)


and LTO, shall prescribe the standards and specifications of motorcycles that may
be allowed to operate as motorcycles-for-hire, taking into consideration the safety
of the riders and passengers.
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 footrest, speed limiter or monitoring
devices, in accordance with the standards and specifications prescribed by the
DTI-BPS and as approved by the LTO under existing laws, rules and regulations.
SEC.  8.  Franchising  of Motorcycles-For-Hire.  -  The  franchising  of
motorcycles-for-hire in metropolitan and urbanized areas with an existing and
operating TNC or OEPP is vested in the Land Transportation Franchising and
Regulatory Board qTFRB). The LTFRB shall set forth in the franchise granted
to  operators,  the  terms  and  conditions  to  be  observed  in  the  operation  of
motorcycles-for-hire. Such franchise shall allow the operator to engage in multi-
homing operation upon accreditation with other TNCs or OEPPs.
The LTFRB, in coordination with the concerned local government unit in
a province, city or municipality, shall determine the number of units and areas of
operation, or routes if applicable, of motorcycles-for-hire in accordance with the
route rationalization plan or studies adopted by the DOTr:  Provided,  That in
determining the number of motorcycle-for-hire units to be operated by TNCs and
OEPPs, the demand for their services shall be the basis for the LTFRB in the
i ssuance of franchise.
The franchise fee and any other related charges for operating a motorcycle-
for-hire shall be determined by the LTFRB, subject to the approval of the DOTr.
In areas outside the metropolitan areas or regional hubs and where there is
no existing or operating TNC or OEPP, the application for a franchise shall be
coursed  through  the  LGU  under  which  jurisdiction  the  motorcycle-for-hire
intends to operate: Provz.c7ecJ, That a motorcycle-for-hire may only operate within
the  territorial jurisdiction  of the  LGU  concerned:  Provz.c7ecJ /„7¢feer,  That the
LGUs may recommend the appropriate number of units that may be allowed to
operate in their respective jurisdictions based on the demand in the locality.
To ensure the fast and efficient processing of franchises, the LTFRB and
LGUs shall establish a system of coordination that shall be incorporated in the
rules and regulations to be issued pursuant to Sec. 21 of this Act.
SEC. 9. Requirements for the Grant of a Franchise or lssuance of a
Certificate of Public Convenience (CPC). - A CPC shall only be issued to an
operator upon submission of and compliance with the following requirements:
a) Proof of Filipino citizenship;


b)ProofofaccreditationbyaTNCoroEPpformotorcycles-for-hireunder
the digital platform or business permit issued by relevant city or municipality for
motorcycles-for-hire not operating under a TNC or OEPP;
c) Certificate of Registration duly issued by the LTO;
d)  Appropriate  space  to  serve  as  a  garage  for  a  franchise  applicant
intending to operate three (3) or more motorcycles-for-hire;
e) Insurance coverage for any death or injury that may occur to a rider,
passenger or any third party or damage to property by reason or on occasion of
its operation; and
D Tax Identification Number or Certificate of Registration as Common
Carrier issued by the Bureau of htemal Revenue @IR), if applicable.
SEC.  10.  Qualirications of Motorcycle-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 theoretical
and practical examinations that are appropriate for the operation of a motoreycle-
for-hire.  Ony  riders  possessing  such  professional  driver's  license  shall  be
allowed to operate motorcycles- for-hire. The LTO shall conduct a continuing
safety  training  program  for  licensed  riders  of  motorcycles-for-hire  with  a
curriculum  duly certified by the Technical Education and  Skills Development
Authority (TESDA): Provz.c7ec7, That licensed riders shall attend at least one (1)
safety tralning seminar every year.
SEC. 11. Accreditation Requirements of TNCs and OEPPs. -A TNC
or OEPP must be duly registered with the Securities and Exchange Commission
(SEC).
Before a TNC or OEPP which utilizes motorcycles-for-hire in its business
operations is allowed to operate as such, it must comply with the accreditation
requirement  of Department  of Information  and  Communications  Technology
(DICT). The DTI, LTFRB and DICT shall jointly issue the guidelines that shall
govern the operations of TNCs and OEPPs using motorcycles-for-hire.
The TNCs and OEPPs must possess and maintain the following minimum
requirements for its accreditation:
a) Proof of Filipino citizenship;
b) Proof of financial capacity;
c) SEC registration;
d) BIR Tax Identification Number;
e) An Accident Quick Response System;


I) A training center, duly certified by the LTO and TESDA, to evaluate and
determine the competence of riders. The DICT may, as a requirement for renewal
of accreditation,  consider the previous safety record of the TNC or OEPP as
certified by the LTO during the effectivity of its accreditation being applied for
renewal.
SEC.  12.  Operation  of Motorcycle-For-Hire.  ~  Motorcycles-for-hire
may  be  allowed  to  operate  using  digital  booking  platforms  or  designated
terminals. To maximize its operation, motorcycles-for-hire shall not be bound by
a single TNC or OEPP but shall be allowed to adopt a multi-homing approach
within a particular area of operation under the given franchise: Provz.cJed, That a
motorcycle-for-hire accredited under any TNC or OEPP platform may not be
allowed to operate as motorcycle-for-hire without using such platform.
The capacity, nature and character of goods that may be transported, as
well   as  the  dimensions  of  the  motorcycle  bracket  or  luggage  carrier  of
motorcycles-for-hire, shall be determined by the LTFRB in accordance with the
standards and specifications provided under Section 7 of this Act. Motorcycles-
for-hireshalloperateatspeedsallowableunderRepublicActNo.4136,otherwise
known as the "Land Transportation and Traffic Code", local ordinances and other
applicable laws: ProvJ.decJ, That in no case shall a motorcycle-for-hire operate
beyond sixty kilometers per hour (60kph).
SHC.  13. Fare Setting. - The fares, surcharges and other transportation
fees that may be charged by operators, OEPPs or TNCs shall be in accordance
with the fare structure and within the parameters determined, prescribed, and
issued by the LTFRB, in consultation with the motorcycle-for-hire industry and
subject  to  the  approval  of  the  DOTr.   The  fare  structure  shall  take  into
consideration supply of and demand for motorcycle-for-hire services and shall
allow dynamic pricing on account of market variations based on location and
time. The fare structure shall also include the maxinum percentage that can be
charged by the TNCs or OEPPs upon the operators or riders on the shipping or
delivery  fee.  The  LTFRB  shall  periodically  review  the  fare  structure  and
parameters of determining the applicable fares,  subject to the approval of the
DOTr. The booking system of TNCs and OEPPs shall feature a mechanism that
enablesclientstocomparethetranspoftationcostchargedbyeachoftheavailable
digital platform s.
In the case of motorcycle-for-hire operating outside the digital platforms,
the fare shall be determined by the LTFRB after a public consultation with LGUs
and the operators and other stakeholders, with the approval of the DOTr.
SEC.   14.   Processing  of  Personal   Information.  -  Any   collection,
processing   and   storage   of  personal   information   and   sensitive   personal
informationinvolvedintheregistrationofmotorcycles-for-hire,digitalbookings,


and other requirements under this Act  shall be made in  accordance with the
provisions of Republic Act No. 10173, otherwise known as the "Data Privacy Act
of2012."
SEC. 15. Liabilities for Death, Injuries or Damage to Property. - The
operator and the TNC or OEPP providing the digital platform at the time when
the death, injury or damage to property occuITed in the course of operating a
motorcycle-for-hire shall be jointly liable, with rights of subrogation against any
party at fault: Provided, That the liability Of the TNC or OEPP shall not exceed
the amount of the insurance coverage of the operator.
SEC. 16. Accident Quick Response. -Each TNC or OEPP shall 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 or road
crash shall be part of the booking application options of the digital platforms.
When necessary, the TNC or OEPP shall advance any amount necessary for the
admission of such injured person or persons to a hospital or medical facility up
to the maximum insured amount.
SEC.  17.  Enforcement.  - To  ensure  the  safe  and  secure  operation  of
motorcycle-for-hire,theLTOshalldeputizeLGUsandotherrelevantgovemment
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  and  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 made accessible to the
public.
Consistent with its mandate under Republic Act No. 7924 which created
the Metropolitan Manila Development Authority (MroA), the MMDA shall
continue to  exercise its traffic enforcement functions within Metro Manila in
futherance of the objectives of this Act.
All violations related to the terms and conditions of a franchise shall be
endorsed  by  the  LTO  enforcement  officers,  deputized  LGU  enforcers  and
MMDA persormel to the LTFRB for appropriate action.
The foregoing shall not preclude the TNCs 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. - The following prohibited acts shall be penalized as
follows:
a) Any rider who operates a motorcycle-for-hire in violation of traffic rules
and regulations,  canying  capacity  and  licensing  requirement  shall  suffer the
maximumpenaltyimposedundertheapplicablelaw,ordinance,ruleorregulation
for such violation. In addition, the LTO shall impose a penalty of suspension or
revocation of 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 rules and regulations to be issued pursuant to See. 21 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 Republic Act No. 7394, otherwise known as the
"Consumer  Act  of  the  Philippines"  and  Republic  Act  No.   10173,  when
applicable,  shall  apply  for  acts  or  omissions  committed  in  the  course  of
motorcycle-for-hire operation.
SHC. 19. Travel Demand and Operational Data. - To assist the DOTr
in transportation planning and management, the TNCs 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. - To ensure a smooth transition in the
implementation of this Act, the authority and accreditation granted to existing
TNCs, OEPPs and operators shall continue to be effective until their expiration
or six (6) months from the promulgation of the rules and regulations to be issued
pursuant to Section 21 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-BPS,   DICT,   BIR,   TESDA,   Department   of  Health,
Department  of the  hterior  and  Local  Government,  MMDA,  and  Philippine
National Police-Highway Patrol Group, and in consultation with stakeholders,
promulgate rules and regulations for the effective 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.
SHC. 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,