<p Bernese

Republic of the Philippines
HOUSE OF REPRESENTATIVES.
‘Quezon City
EIGHTEENTH CONGRESS

‘Nouse BIN. 8281
2) ed i ce

Introduced by Hon. Rosanna “Ria” V. Vergara, Evelina G. Escudero, and
Joy Myra S.Tambunting

EXPLANATORY NOTE

All over the country, passengers regard the tricycle as the primary means of transport
in small towns and cities, especially in the rural areas. A study by the Asian Development
Bank stated that tricycles remain as a major transport tool for residents in local government
units owing to their (i) high accessibility; (ji) availability; (ii) affordability; (iv) comfort; and (v)
convenience.” Operating a tricycle is also a popular means of livelihood for the unemployed
sector of the workforce since it does not require a big amount of capital nor a college
degree.t An article by CNN citing the National Statistical Coordination Board reported that a
total of 658,675 for-hire tricycles and motorcycles were operating in the country in 2012. This
is nearly 67.9% of the total number of public utility vehicles, outnumbering the collective total
of jeepneys, buses, and other similar for-hire vehicles.* Cognizant of these facts, this bill
addresses the low purchasing power of this sector and aims to provide support to these
hardworking individuals.

Section 447 (a)(3)(vi) and Section 458 (a)(3)(vi) of the Local Government Code
provide that the Sangguniang Bayan and Sangguniang Panglungsod have the power to
regulate the operation of tricycles and grant franchises for the operation thereof within the
territorial jurisdiction of the municipality and the city. Local government units (LGUs) thus
have the legal mandate to regulate the use of tricycles as public utility vehicles and to issue
franchises for their operation. This transfer of the powers performed by the then Department
of Transportation and Communication (DOTC) and by the Land Transportation Franchising
and Regulatory Board (LTFRB) to the LGUs by the Local Government Code sought to
address the rise in the number of accidents that tricycles figured in. The idea behind the
devolution of powers to the LGUs is that they are better positioned to address these
problems due to their closeness to the issues confronting tricycles as opposed to the
poTcs

* https:/Awww. [sites/default/files/projects/163994/43207-012-phi-dpta-O7 pdf

Ibid.
+ http://cnnphilippines. com/ 15/03/16/tricycles-as-iconic-as-ijeepneys.htm!

5 Land Transportation Office v. City of Butuan, G.R. No. 131512, 20 January 2000.
1



This power to regulate is still subject to the guidelines prescribed by the Department
of Transportation. This is embodied in the "Guidelines to Implement the Devolution of
LTFRBs Franchising Authority over Tricycles-For-Hire to Local Government units pursuant to
the Local Government Code.” The Guidelines provide that in lieu of the LTFRB in the DOTC,
the Sangguniang Bayan or the Sangguniang Panlungsod shall issue, amend, revise, renew,
suspend, or cancel the Motorized Tricycle Operators Permit and prescribe the appropriate
terms and conditions therefor. The said rules also provide for minimum operating conditions
for tricycles,

Despite this devolution, however, our tricycle drivers still experience problems with
the city or municipal government. For example, some drivers reported the collection of illegal
fees, some noted the illegal sale of tricycle franchises, and some reported the issuance of
multiple permits for just one tricycle number. Other recurring problems include the tough
working conditions of tricycle drivers as well as the poor maintenance of tricycles which
generally leads to air pollution

This bill seeks to provide a magna carta for tricycle drivers and operators. It will
ensure the safety and protection of this sector from abusive local and national authorities as
well as the continued growth of this cultural icon that serves as the livelihood of a large
number of Filipino families. This proposal provides for a simplified registration system, a one-
stop-shop for tricycle operators, health care and social benefits, lesser penalties compared
to their four-wheeled counterparts, the promotion of more economical and eco-friendly
engines, as well as a more concrete and defined role for local government units in the
development of the sector.

In view of the foregoing, the immediate adoption of this measure is earnestly
requested.

ROSANN, an efoara
arwDistrict, Nuevp Ecija

(ELINA G. ESCUDERO S. TAMBUNTING

1* District, Sorsogon a eed Paranaque


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS,
First Regular Session

House Bill No. 3281

Introduced by Hon. Rosanna “Ria” V. Vergara, Evelina G. Escudero, and
Joy Myra S.Tambunting

AN ACT
PROVIDING FOR REGULATION OF TRICYCLES, INSTITUTIONALIZING MECHANISMS,
FOR ITS IMPLEMENTATION

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”.

SEC. 2. Declaration of Policy. — It is the policy of the State:

a) To promote and improve the total well-being of the members of the tricycle sector
particularly the marginalized low-level income earners by providing them with
adequate and timely social, economic, and legal services, as well as with a
mechanism that protects their rights and promotes benefits that ensure their
dignified existence and economic advancement;

To recognize, promote, protect, and fulfill the rights of every member of the
tricycle sector, particularly the tricycle drivers, whose rights include but are not
limited to 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

z

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;

To give the highest priority to the enactment of measures that protect and
enhance the rights of all people to human dignity, reduce social, economic, and
political inequalities and remove cultural inequities by diffusing wealth and

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political power for the common good and to provide environments at the national


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d)

and local levels that enable all workers to fully develop into productive and
responsible citizens.

d) To recognize the roles and contributions of members of the tricycle sector, make

them visible in the national and local statistics, and develop the local economy by
maximizing their potential;

To promote gender equity and equality through the elimination of gender
stereotypes attached to this sector, redefining the sector by inclusivity in that
tricycle drivers do not only consist of males but also females, and protecting the

women workers against gender-based discrimination, exploitation, violence, and
all other forms of abuse;

f) To protect vulnerable groups in the tricycle sector such as the elderly and

differently-abled persons from safety issues, discrimination, and harassment; and

To eliminate child labor in the tricycle sector through effective enforcement of
laws against child labor and the creation of more quality jobs for adults.
SEC. 3. Framework and Principles. — Local government units (LGUs) shall pursue

and implement a comprehensive, rights-based, participatory and gender responsive
framework for members of the tricycle sector that includes:

Putting in place policies and programs that will, as a first step, bring members of
the tricycle sector to the economic and social mainstream;
b)

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;

Extending coverage of accessible and affordable social security and health care
benefits to workers in the tricycle sector; and

Exacting responsibility on the part of the tricycle sector members, particularly for
committing abuses to the riding public, to stakeholders in the sector, and to the
environment: 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. 4. Definitions. — As used in this Act

(a) Colorum — refers to a private vehicle operated for public utility without the benefit
of a valid and existing special permit, provisional authority, or franchise

(b) Motorist Awareness Program — refers to any information or public awareness
program designed to enhance motorist awareness on the presence of tricycles on
or near roadways.

(c) Motorized Tricycle Operators Permit (MTOP) — refers to the permit that
authorizes the holder to operate a tricycle for public transport;


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(d) Sanggunian — refers to the sangguniang panlungsod or the sangguniang bayan,
as the case may be;

(e) Tricycle — refers to 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.

(f) Tricycle Drivers Safety Program — refers to any formal program of instruction
that provides accident avoidance, compliance with road safety laws and best
practices and other safety-oriented operational skills to tricycle drivers, including
innovative training to meet unique regional needs.

(g) Tricycle Operators and Drivers’ Association or TODA — refers to the
organization of tricycle operators and drivers in a given LGU

(h) Tricycle Sector - refers to a group consisting of drivers and operators of
tricycles for public transportation in the Philippines.

SEC. 5. Tricycle Operating Requirements. Tricycles shall be operated subject to the

following requirements:

(a) 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), the cities and municipalities shall have the
power to regulate the operation of tricycles and grant permits for the operation thereof within
their territorial jurisdiction,

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 their 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.

(b) _ For safety reasons, no tricycle shall 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 Sanggunian may provide exceptions if there
are no transportation services or 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.


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(©) 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.

(d) The LTO shall ensure the roadworthiness of tricycles before registration or
renewal of registration, including compliance with environmental laws. In coordination with
motorcycle and tricycle manufacturers and the Department of Trade and Industry (DTI), the
LTO shall formulate safety standards and the allowable designs and modifications, taking
into consideration the needs of the vulnerable groups, and determine the limitations on
passengers and weight or load capacity. Such limitations shall be indicated on the body of
the tricycles.

(e) Zones must be within the boundaries of the concerned city or municipality
However, existing operating zones traversing two (2) or more LGUs shall be maintained:
Provided, That operators serving said zones shall secure the necessary MTOP from each of
the LGU having jurisdiction over the covered areas.

(f) An LGU may adopt a common color coding scheme for tricycles operating in
the same zone. Each unit shall be assigned and bear an identification number, aside from its
license plate number issued by the LTO.

(9) An operator wishing to completely terminate its service should report in
writing such termination to the Sanggunian which originally granted the MTOP.

(h) 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 to an MTOP and shall require appropriate approval of the
‘concerned Sanggunian.

(i) A tricycle shall be allowed to operate like a taxi service where, aside from
rendering services in the designated terminal, the tricycle can be flagged-down or engaged
by passengers on the road within its authorized zone of operation

The concerned LGUs shall impose no other additional requirement for tricycle
operation, except those provided under this Act.

SEC. 6. Registration and Issuance of the MTOP. — There shall be a simple system
and procedure for registration and issuance of the MTOP in accordance with the framework
and principles of this Act. The registration fee for the application for an MTOP, which shalll be
valid for a three-year period, shall not exceed one thousand pesos (PhP1,000.00). 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 alll other fees. No other fees shall be
exacted from the tricycle sector business activities or enterprise other than the registration
fee as mentioned above.


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The LGU may increase or adjust the fee herein imposed once every five (5) years
Provided, That in no case shall the increase be more than 10% of the prevailing amount.

SEC. 7. Tricycle Sector One-Stop Shop Center. - All cities and municipalities shall
establish a Tricycle Sector One-Stop Shop Center which shall handle all transactions and
processing of the business permit applications within their respective jurisdictions. The
Center shall ensure that the processing of the MTOP of the members of the tricycle sector
shall commence on the day of their application and the registration shall be released within
thirty-six (36) hours upon submission of the complete requirements.

To facilitate efficient and expeditious processing of MTOP applications, the LGUs
shall also 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. The LGUs shall also be responsible in translating the checklist of
requirements and flowchart of procedure of registration in their own local dialect. The 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,

(©) Safe working conditions with access to medical care services and insurance;

(4) 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) Equal access to information on how to safeguard their rights according to law;

(@) Any driver shall not be forced or engaged to work in any hazardous work,
activity or undertaking, or be exposed to hazardous working conditions; and

(h) Any member of the tricycle sector shall be protected from any act of
interference, coercion, extortion, and bureaucratic red tape.

SEC. 9. Government Support to Tricycle Sector. — All concerned national government
agencies, government financial institutions, and LGUs shall include in their plans, programs,


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projects and activities efforts that are supportive of the foregoing rights and other concerns
of the tricycle sector. Each LGU shall also create a grievance mechanism to deal with the
concerns of the members of the tricycle sector.

SEC. 10. 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. The SSS shall also inform its members from the tricycle sector of services
and loans that they can avail of.

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. 11. Role of the Local Government Unit. - Subject to the operating conditions in
Section 5 of this Act and the guidelines to be promulgated by the DOTr, LTO and LTFRB,
cities and municipalities shall have the following responsibilities:

(a) An LGU, in coordination with their respective Informal Sector Local

Development Office, after consultation with the transport groups, the affected communities,
and other stakeholders, shall identify and designate viable routes and terminals of tricycle
within the city or municipality. Viable terminals shall be in proximity to public buildings, public
markets, private 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 pursuant to the
recommendation of the Informal Sector Local Development Office, pass an ordinance
designating the routes and the terminals of tricycles as specified in this Act. However, no
designation of terminals shall be conducted without prior consultation with the tricycle sector,
the affected inhabitants and other sectors.

‘An LGU, which has already established or designated routes and terminals of
tricycles prior to this Act, is 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.

(©) In coordination with the DOTr, LTO and public and private stakeholders,
LGUs shall also lead a tricycle maintenance program. This shall be done by providing the


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existing TODAs within their jurisdiction, training and instruction on preventive and periodic
maintenance in tandem with the Department of Science and Technology (DOST) and other
private institutions.

(4) Vocational education on auto-mechanics and related courses like engine
repair and maintenance shall also be offered by the LGU to the members of the tricycle
sector, in coordination with the Department of Labor and Employment (DOLE) and the
Technical Education and Skills Development Authority (TESDA).

With the help of DOLE and TESDA, LGUs shall also provide for alternative livelihood
and skills-training programs to allow tricycle drivers to explore more economically rewarding
sources of income.

(e) There shall be a regular conduct of 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 shall include a Motorist Awareness Program in all its
safety trainings

(f) The LGUs, in coordination with law enforcement agencies, shall prevent the
proliferation of illegal or colorum tricycle units.

(9) The LGUs, in coordination with the DOLE and other concemed agencies,
shall ensure the regular conduct of seminars to prevent the unlawful employment of children
as tricycle drivers and the gender based discrimination in granting driver's licenses.

(h) The LGUs are also hereby empowered to provide, in its ordinance or as terms
or conditions in the MTOP or franchise issued, additional acts of violation, whether relating to
existing laws, rules and regulations or to the treatment of tricycle passengers, and the
penalties therefore in accordance with the operation of tricycles within their respective
jurisdiction.

SEC. 12. Phase-in of More Efficient Engines. — Within thirty (30) days from the
effectivity of this Act, the DOTr and the DOST shall implement a continuing program to
encourage manufacturers to develop more efficient engines and cleaner technologies to be
used by the tricycle sector. The DTI-Bureau of Product Standards shall prescribe the
standards and specifications for tricycle engines to be observed by the tricycle sector in
pursuit of cleaner technologies and in accordance with Republic Act No. 8749, otherwise
known as the Clean Air Act.

SEC. 13. Penalties.

a) A public officer or employee who acts in violation of Sections 5, 6, or 7 hereof,
shall, in addition to administrative and criminal liability under existing laws, be penalized with
one-month to six-month suspension from office, at the discretion of the court.


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b) A ddriver 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 as mentioned in Section 5 (b) hereof, transports
passengers 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 the necessary MTOP or authority to
operate in highways, 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) or the impoundment of the tricycle by an enforcement agency for a
period of two (2) months. The second and succeeding offenses shall warrant the revocation
of the MTOP or franchise and the perpetual disqualification from being issued the said
privilege.

d) Any person who shall willfully interfere with, restrain or coerce any member of
the tricycle sector in the exercise of rights or shall in any manner act in violation of Section 8
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 (1) year or both, at the discretion of the court.

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. 14. Funding. - An initial appropriation of ONE BILLION PESOS

(P1,000,000,000.00) 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. Implementing Rules and Regulations. - The DOTr, in coordination with the
LTO, LTFRB, the SSS, PhilHealth, DOLE, TESDA, DOST, DTI and the Department of
Interior and Local Government, shalll 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 fund for subsidizing the SSS or PhilHealth premiums of the members of
the tricycle sector and the programs that will benefit them.

10


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SEC. 16. 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. 17. Repealing Clause. — Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule, ordinance, or regulation contrary to or
inconsistent with, the provisions of this Act is hereby repealed, modified, or amended
accordingly.

SEC. 16. Effectivity. — This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.

Approved,

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