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HOUSE OF REPRESENTATIVES
Quezon City

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128

HOUSE BILL NO.

Introduced by: Rep. RACHEL MARGUERITE “CUTIE” DEL MAR

EXPLANATORY NOTE

The attached Bill seeks to regulate the operation of motorcycle-for-hire. As
a backgrounder, during the last 18" Congress, my father, the late Representative
Raul V. Del Mar filed HB No. 13, entitled “An Act Allowing and Regulating the Use
of Motorcycles as Public Utility Vehicles, Amending for the Purpose Republic Act
No, 4136, Otherwise Known As the Land Transportation and Traffic Code, and for
other Purposes’, the same was referred to the Committee on Transportation.
However, during the deliberation of said HB No. 13, there are other bills of similar
nature prompting the Committee on Transportation to consolidate all the
proposed measures relating to the regulation of motorcycles-for-hire. Thereafter,
the Committee came up with the consolidated version which is HB No. 10571.
Said HB No. 10571 was passed on third reading in the House of Representatives
and was transmitted to the Senate for its consideration. Unfortunately, due to
lack of material time, the Senate was not able to consider the said HB No. 10571.
The attached bill is the complete version of what was approved by the House last
18" Congress.

This representation reiterates herein below the justification stated in the
original HB No. 13 authored by my late father, Rep. Raul V. Del Mar:


Thus, it is of common knowledge that in cities, municipalities and
barangays in the country, there is a proliferation of motorcycles-for-hire known
as habal-habal or angkas. Habal-habal or angkas has been considered as the
most convenient and cheapest means of transportation of the residents therein
for lack of other means of transportation. Despite the benefits that motorcycles-
for-hire provide, it cannot be denied that their non-regulation poses danger and
risks to the safety and welfare of the riding public. The absence of any law
regulating the operation of motorcycles-for-hire or habal habal or angkas runs
counter to the policy of the State to ensure the safety and welfare of the public.

The amendment of Section 7 (c) of Republic Act No. 4136 - Land
Transportation and Traffic Code will resolve the existing inadequacies in our laws
and shall promote the safety and welfare of people who patronage motorcycles-
for-hire known as habal-habal or angkas. Any two-wheeled motor vehicle known
as motorcyles-for-hire may be registered with the Land Transportation Office
(LTO) as for hire and may be used as a commercial vehicle to transport
passengers and goods. Application for registration under this classification shall
be accompanied by certificate of public convenience or a special permit issued
by the Land Transportation Franchising and Regulatory Board (LTFRB). This
will ensure that operators and drivers will be held responsible for the negligent
operation of their motorcycles. The same will likewise prevent abuse from
owners, operators and drivers, thus ensuring low-cost transportation.

Approval of this bill is earnestly sought.

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RACHEL GUERITE “CUTIE” DEL MAR


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 128

Introduced by Rep. RACHEL MARGUERITE “CUTIE” DEL MAR

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. Short Title. - This Act shall be known as the “Motorcycles-
for-Hire Act.”

SEC. 2. Declaration of Policy. - The State recognizes the importance of
transportation in economic development. The recent innovations in
technology has opened an opportunity for alternative modes of public
conveyance, such as motorcycles-for-hire, to thrive as a reliable and
accessible mode of transportation. However, despite its promise of
convenience and fast service, it must be regulated 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 public transportation that is sufficient, safe, secure and economical.

Towards 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) Motorcycle refers to any two (2)-wheeled motor vehicle without

appendages;


b) Motorcycle-for-hire refers to a motorcycle, duly registered as such
under this 4 Act, and used to carry passengers or goods on a for hire basis,
offering its services to 5 the public;

c) Multi-homing 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) Ontine E-commerce platform provider refers to a natural or juridical
person whose primary business is to provide the digital platform that connects
online buyers and online sellers to facilitate the sale of products, goods or
services through the internet;

€) Operator refers to the person in whose name the motorcycle-for-hire
is registered;

f) Rider refers to the driver of the motorcycle-for-hire; and

8) Transportation network company refers to an entity which provides
pre-arranged transportation services for compensation using an internet-
based technology application or digital platform 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 aspects of
the operation of motorcycles used as a common carrier for the transportation
of passengers or goods which shall include parcels and mail. This Act shall
not apply to motorcycles directly owned by entities and used exclusively in
the line of business for delivery of goods and other services.

SEC. 5. Motorcycles-For-Hire as Common Carriers. - The operation of
motorcycles-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 presumption 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 motorcycle-for-hire must be duly registered with the Land
Transportation Office (LTO) 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-Hire. - The
Department of Transportation (DOTr), upon the recommendation of the
Department of Trade and Industry - Bureau of Philippine Standards (DTI-
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 foot rest, 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 (LTFRB). 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 issuance 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: Provided, That a
motorcycle-for-hire may only operate within the territorial jurisdiction of the
LGU concerned: Provided further, 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 Issuance 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) Proof of accreditation by a TNC or OEPP for motorcycles-for-hire
under 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

f) Tax Identification Number or Certificate of Registration as Common
Carrier issued by the Bureau of Internal Revenue (BIR), if applicable.

SEC. 10. Qualifications 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
motorcycle-for-hire. Only 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): Provided, That licensed riders shall attend
at least one (1) safety training 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;

4) 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: Provided, 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-hire shall operate at speeds allowable under Republic
Act No. 4136, otherwise known as the “Land Transportation and Traffic Code”,
local ordinances and other applicable laws: Provided, That in no case shall a
motorcycle-for-hire operate beyond sixty kilometers per hour (60kph).

SEC. 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 maximum 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 enables clients to compare the transportation cost charged by each of the
available digital platforms.

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 DOTY.

SEC. 14. Processing of Personal Information. - Any collection,
processing and storage of personal information and sensitive personal
information involved in the registration of motorcycles-for-hire, digital
bookings, 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 of 2012.”

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 occurred in the course of operating a


motorcycle-for-hire shall be jointly and solidarily 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, the LTO shall deputize LGUs and other relevant
government 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 (MMDA), the MMDA
shall continue to exercise its traffic enforcement functions within Metro
Manila in furtherance 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 personnel 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, carrying capacity and licensing requirement shall
suffer the maximum penalty imposed under the applicable law, ordinance,
rule or regulation 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 Sec. 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.

SEC. 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
Interior 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.

SEC. 23. Repeating 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