Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
1” Regular Session

House Bill No. 19 6

Introduced by Representatives EDVIC G. YAP

EXPLANATORY NOTE

“Habal-habal” or motorcycle ride-sharing has been regarded as one of the most
popular, if not the primary, modes of informal transportation, particularly in the
country’s highly congested public roads. On top of that, it is relatively cheap yet
fast-moving. However, despite its practicality and convenience, a large number of
the motorcycle-for-hires are not registered—making their services basically illegal
due to lack of insurance coverage and ungoverned by the laws on common carrier.
Thus, a consequential amount of risk has been correlated to such transportation,
affecting a significant portion of the country’s public transportation users.

Given the perils of habal-habal, the government is mandated to ensure that
transportation network companies (TNC) and Online E-Commerce platform
providers (OEPP) shall exercise due diligence and reasonable care in accrediting
motorcycle-for-hire operators and drivers that shall operate under their platforms.

In this regard, this bill seeks to regulate the operation of motorcycles-for-hire,
including habal-habal, thereby making the said mode of transportation safer and
relatively a sustainable option for the commuting public, the riders, and other road

users.

In view of the foregoing, approval of this bill is earhestly sought.

HON. EDY{C G. YAP


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
1 Regular Session

136

House Bill No.

Introduced by Representatives EDVIC G. YAP

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 "Motorcycles-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
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
Act, and used to carry passengers or goods on a for hire basis, offering its
services to the public;

cc. Multi-homing refers to an approach where an operator may accredit
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. Online 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;

e. 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

g. 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 OPPs, - A TNC or OEPP
must be duly registered with the Securities and Exchange Commission (SEC).

Before a TNC or OPP 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 OPPs 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;


fA 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 DOT.

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 shal] 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. 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,