Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Twentieth Congress
First Regular Session

HOUSE BILL No. _44 16

Introduced by Representative Ramon Rodrigo L. Gutierrez

EXPLANATORY NOTE

In recent years, motorcycles-for-hire, commonly known as motorcycle
taxis, have emerged as an increasingly vital component of the country’s public
transportation system. Their popularity has been driven by their ability to
navigate through traffic congestion swiftly and their relatively affordable fare
structure, making them a preferred mode of transportation for millions of
Filipinos, especially in highly urbanized and densely populated areas.

Despite their growing importance and undeniable utility, motorcycle taxis
currently operate only on a provisional basis under pilot programs and
temporary arrangements authorized by the Department of Transportation
(DOTY). There remains no existing law that formally legalizes and regulates their
operation. This legal vacuum leaves both riders and commuters in a vulnerable
position.

‘The absence of a comprehensive legal framework means that riders live
with the constant threat of losing their source of income. Moreover, the safety
and security of the riding public are compromised due to the lack of standardized
safety protocols, operational guidelines, and regulatory oversight. Without
proper regulation, issues such as pricing, accountability, training standards,
and insurance coverage likewise remain unaddressed.

This bill, therefore, seeks to formally recognize and regulate motorcycles-
for-hire as legitimate public transport services. Among its key provisions are:

1. Recognition of motorcycles-for-hire as common carriers, thereby
ensuring that they are subject to the same responsibilities and
obligations applicable to other public utility vehicles;

2. Establishment of a regulatory framework governing the operation of
motorcycles-for-hire, including provisions for the registration of
motorcycles-for-hire, standards and specifications, _ franchise
requirements, rider qualifications, accreditation of motorcycle taxi
platform providers (MTPPs), and fare setting mechanisms;

3. Creation of a Rider’s Council, an advisory and consultative body to the
Land ‘Transportation Franchising and Regulatory Board (LTFRB), to
ensure that the voices and welfare of riders are adequately represented
in the formulation of fare structures, surcharges, and other relevant
policies; and


4, Facilitation of access to social security and welfare benefits for
motorcycles-for-hire riders, acknowledging their role as vital contributors
to the transportation sector and ensuring they are accorded the
protections and support due to them as workers.

House Bill No. 10424 or the “Motorcycles-for-Hire Act” was previously
passed on third reading by the House of Representatives on July 30, 2024.
Unfortunately, it was not enacted into law prior to the adjournment of the 19th
Congress. In view of the bill’s significance to public transportation, economic
opportunity, and commuter welfare, this representation is refiling the measure
with necessary modifications to reflect current needs and realities.

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

RAMON ROD! L. GUTIERREZ
1-Rider Partylist Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

‘Twentieth Congress
First Regular Session

HOUSE BILL No._4416

Introduced by Representative Ramon Rodrigo L. Gutierrez

AN ACT
REGULATING THE OPERATION OF MOTORCYCLES-FOR-HIRE AND
PROVIDING PENALTIES FOR VIOLATION THEREOF

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.

SECTION 2. Declaration of Policy. The State recognizes the importance of
transportation in economic development. Recent innovations in technology have
opened an opportunity for other 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 additional mode of public transportation, which is
sufficient, safe, secure and economical.

To this end, the State shall establish mechanisms and guidelines in regulating
all the operational aspects of motorcycles-for-hire.

SECTION 3. Definition of Terms. — As used in this Act:

(a) Digital platform refers to information and communications technology-
enabled mechanism that connects and integrate producers and users in
online environments where goods and services are requested, developed,
and sold, and data is generated and exchanged;

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

appendages;

(c) Motorcycle-for-hire refers to a motorcycle, duly registered as such under
this Act, and used to carry passengers on a for hire basis, offering its
services to the public. A motorcycle-for-hire shall be considered a public
utility vehicle and its operation a public utility;

(d) Motorcycle taxi platform provider (MTPP) refers to an entity which provides
pre-arranged transportation services for compensation using a digital
platform to connect clients with riders to facilitate a contract of carriage
of persons using a motorcycle-for-hire;


(e) Multi-homing refers to an approach where an operator may accredit a
particular motorcycle-for-hire to more than one digital platform providers
in delivering transport services;

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

(g) Rider refers to the driver of the motorcycle-for-hire.

SECTION 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. 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.

SECTION 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, and on the presumption of culpability in case of breach of a contract
of carriage.

MTPPs should exercise extraordinary diligence in the accreditation and
supervision of motorcycle-for-hire operators and riders operating under their
platforms.

SECTION 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.

SECTION 7. Standards and Specifications of Motorcycles-For-Hire. - The
Department of Transportation (DOTr), upon the recommendation of the
Department of Trade and Industry (DTI), Department of Environment and
Natural Resources, LTO and Land Transportation Franchising and Regulatory
Board (LTFRB), shall prescribe in the implementing rules and regulations the
standards and specifications of motorcycles that may be allowed to operate as
motorcycles-for-hire, taking into consideration the safety of the passengers and
riders.

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, crash guards, speed limiter
or monitoring devices, in accordance with the standards approved by the DTI, if
applicable, and shall be used as reference by the LTO for registration purposes.
In case the DTI has no approved standards, the LTO, upon consultation and
agreement with all stakeholders, shall prescribe the same, taking into
consideration road worthiness and road safety, until such time the DTI has
issued appropriate standards.

Within five (5) years upon the enactment of this Act, the DTI shall ensure the
availability of standards of all products and parts covered by this Act and its
implementing rules and regulations, and its future amendments or revisions.


SECTION 8. Authority to Grant Franchise to Operate Motorcycles-For-Hire. - The
franchising or grant of authority to operate motorcycles-for-hire shall be as
follows:

(a) Motorcycles-for-Hire Under MTPPs. — In areas with an existing and
operating MTPPs, the authority and regulation of the operation of
motorcycles-for-hire is vested in the LTFRB through a franchise or
certificate of public convenience (CPC). The LTFRB shall set forth in the
franchise the terms and conditions to be observed in the operation of
motorcycles-for-hire. In determining the number of franchises to be
issued, the LTFRB shall take into consideration the Local Public Transport
Route Plan (LPTRP) or studies approved by the DOTr and their impact on
the other modes of public transportation. The franchise fee shall be
determined by the LTFRB after public consultation and shall only be
implemented upon the approval of the DOTr.

Motorcycles-for-Hire in Areas Without an Operating MTPP. — The authority
and regulation of operation of motorcycles-for-hire in areas without an
operating MTPP is vested in the LTFRB. The number of routes or
motorcycles-for-hire that may be allowed to operate shall be determined
in accordance with the LPTRP as recommended by the local government
unit (LGU) concerned.

(b)

The LTFRB shall provide a uniform guidelines as to the standards of
operation of motorcycles-for-hire in consultation with the LGUs and
stakeholders.

SECTION 9. Requirements for the Grant of a Franchise or Certificate of Public
Convenience. - A CPC shall only be issued to an operator upon submission or
determination of the presence of the following requirements:

(a) Proof of Filipino citizenship;
(b) Financial capacity the standard of which to be determined by the LTFRB;
(0) Certificate of Registration duly issued by the LTO;

(d) Insurance coverage for the death of or injuries suffered by the rider,
passenger or any third party or damage to property by reason or on
occasion of its operation; and

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

No operator shall operate more than one (1) franchise nor operate more than one
(1) motorcycle-for-hire in a franchise.

SECTION 10. Qualifications of Motorcycles-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 or the conduct
of theoretical and practical examinations, appropriate for the operation of a
motorcycle-for-hire. Only riders possessing professional driver’s license shall be
allowed to operate motorcycles-for-hire. The MTPPs and OEPPs shall provide and
conduct a continuing safety training seminar for riders operating under their
respective platforms: Provided, That for motorcycles-for-hire riders operating


outside the digital platform providers, the conduct of continuing safety training
seminar shall be conducted by the LTO.

SECTION 11. Accreditation Requirements of MTPPS. - A MTPP must be duly
registered with the Securities and Exchange Commission (SEC).

AMTPP, as far as the operation of motorcycles-for-hire is concerned, before being
allowed to operate as such, must comply with the accreditation requirement of
the LTFRB. The LTFRB and Department of Information and Communications
Technology (DICT) shall jointly issue the guidelines that shall govern the
operations of MTPPs.

MTPPs must possess and maintain the following minimum requirements for its
accreditation:

(a) Financial capacity the standard of which to be determined in the joint
guidelines;

(b) SEC registration;
(c) BIR Tax Identification Number;
(d) An established Road Crash Quick Response System; and

(c) Capability to evaluate and determine the competence of riders through
an established training center, duly certified by the LTO and Technical
Education and Skills Development Authority (TESDA). The LTFRB may, as
a requirement for renewal of accreditation, consider the

previous safety record of the MTPP as certified by the LTO during effectivity
of its accreditation being applied for renewal.

SECTION 12. Operation of Motorcycles-For Hire. - Motorcycles-for-hire may be
allowed to operate using the digital platforms, or on designated areas of
operation. To maximize their operation, motorcycles-for-hire shall not be bound
by a single MTPP but shall be allowed to adopt a multi-homing approach within
a particular area of operation under the given franchise, license or accreditation.
Provided, That a motorcycle-for-hire accredited under any MTPP platform may
not be allowed to operate as motorcycle-for-hire without using such platform.

Except for private use, any operation of motorcycle-for-hire in areas with
operating MTPP outside the digital platform shall be considered colorum and,
therefore, illegal.

For purposes of multi-homing operation of motorcycles-for-hire, the platform
providers may not refuse an application for accreditation solely on the ground
that an operator or rider is accredited to another platform provider.

The maximum number of hours that a rider may operate a motorcycle-for-hire
shall be specified in the implementing rules and regulations of this Act.

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

SECTION 13. Fare Setting. - The fares, surcharges and other transportation fees
that may be charged by operators and MTPPs under which they operate for
motorcycles-for-hire services 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 stakeholders. The fare
structure shall take into consideration supply and demand components 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 MTPPs upon the operators or riders for a particular
transaction. The LTFRB shall periodically review the fare structure and
parameters of determining the applicable fares. The booking system of MTPPs
shall feature a mechanism that enables clients to compare the transportation
cost charged by each of the available digital platforms.

In the case of motorcycles-for-hire operating outside the digital platforms, the
fare shall be determined by the LTFRB, after a public consultation with LGUs,
the operators and other stakeholders.

SECTION 14, Rider’s Council; Composition; Functions. - There is hereby created
a Rider’s Council, hereinafter referred to as the “Council,” which shall serve as
an advisory and consultative body to the Land Transportation Franchising and
Regulatory Board (LTFRB) in relation to the regulation of fare structures,
surcharges, and other transport-related fees applicable to motorcycles-for-hire.

The Council shall be composed of the following members:

a) One (1) representative from the Land Transportation Franchising and
Regulatory Board (LTFRB), who shall serve as Chairperson;

Db)

One (1) representative each from the accredited Motorcycle Taxi Platform
Providers (MTPPs), to be designated by the respective platform providers;

c) Two (2) representatives from the motorcycle-for-hire operators’ sector, to
be designated by operator associations or organizations duly recognized
by the Department of Transportation (DOTr);

d) Two (2) representatives from the motorcycle-for-hire riders’ sector, to be
designated by rider associations or organizations duly recognized by the
Department of Transportation (DOTr);

) Two (2) representatives from the consumers or passengers’ sector, to be

designated by duly recognized transport or consumer rights advocacy

organizations.

The Council shall perform the following functions:

a) Conduct an annual review of the fare structure, surcharges, and other
transportation-related fees being imposed by motorcycle-for-hire operators
and MTPPs;

b) Engage in consultations, public hearings, and research to assess the
applicability, fairness, and propriety of existing and proposed fare rates
and charges;

) Recommend to the LTFRB such adjustments or reforms in the fare
structure, surcharge systems, and related fees to ensure affordability,
fairness, and sustainability for both riders and passengers;

°)

d) Submit a comprehensive report and set of recommendations to the LTFRB
on or before the 30th of September each year, which shall be considered


by the Board in the formulation and issuance of the fare structure and
policies pursuant to Section 13 of this Act.

SECTION 15. Fare Discounts. - The fare structure to be prescribed by the LTFRB
for motorcycles-for-hire shall strictly ensure the implementation of all fare
discounts mandated under existing laws, policies, rules, and regulations,
including but not limited to those provided under Republic Act No. 9994,
otherwise known as the "Expanded Senior Citizens Act of 2010"; Republic Act
No. 7277, otherwise known as the "Magna Carta for Disabled Persons", as
amended by Republic Act No. 10754; and Republic Act No. 11314, otherwise
known as the "Student Fare Discount Act’.

The cost of such fare discounts shall be borne solely by the MTPPs and/or the
operators, and in no case shall such cost be transferred or charged to the
motorcycle-for-hire rider, unless the operator is also the rider of the motorcycle-
for-hire.

The LTFRB shall ensure compliance with this provision in the formulation and
approval of fare rates and structures, and shall prescribe the necessary
guidelines for its effective implementation.

SECTION 16. Processing of Personal Data. - Any processing, collection, use
and/or storage of personal information and sensitive personal information
involved in the registration/accreditation of motorcycles-for-hire, digital
bookings, and other requirements under this Act shall be made in accordance
with the provisions of RA No. 10173, otherwise known as the “Data Privacy Act
of 2012.”

SECTION 17. Liabilities for Death, Injuries or Damage to Property. - The operator
and/or the MTPP 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 MTPP shall not exceed the
amount of the insurance coverage of the operator.

MTPPs shall be responsible for the insurance coverage of all its accredited riders.
The MTPP shall likewise be responsible for the procurement of Personal
Passenger Accident Insurance for the protection of the passengers and/or goods,
and, Third Party Liability insurance to cover for damages caused to any third
party in the course of operation of motorcycles-for-hire.

SECTION 18. Access to Social Security and Welfare Benefits. - MTPPs shall
ensure that all registered motorcycle-for-hire riders operating through their
platforms are given access to social security and welfare benefits provided under
existing laws.

MTPPs shall:

a) Facilitate the registration of their affiliated motorcycle-for-hire riders with
the Social Security System (SSS), the Home Development Mutual Fund
(Pag-IBIG Fund), and the Philippine Health Insurance Corporation
(PhilHealth), including through partnerships or arrangements with these
agencies;

b) Deduct and remit contributions, where applicable and with the rider’s
consent, for the rider’s premium payments under the aforementioned


programs, in accordance with existing regulations governing self-employed
and voluntary members; and

c) Provide riders with regular access to information on their contributions
and benefits, and support compliance with all requirements necessary to
maintain good standing with said institutions.

SECTION 19. Road Crash Quick Response System. - Each MTPP 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 app options of the digital platforms. When
necessary, the MTPP shall advance any amount necessary for the admission of
such injured person or persons to the hospital or medical facility up to the
insured amount.

SECTION 20. 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 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 accessible to the public.

Consistent with its mandate under RA No. 7924, entitled “An Act Creating The
Metropolitan Manila Development Authority, Defining Its Powers And Function,
Providing Funds Therefor And Other Purposes,” the Metropolitan Manila
Development Authority (MMDA) shall continue to exercise its traffic enforcement
functions within Metro Manila in furtherance of this Act.

All violations related to the terms and conditions 1 of the 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 MTPPs 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.

SECTION 21. Penalties. —

(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 the 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 implementing rules and
regulations 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 RA No. 7394, otherwise known as the “Consumer
Act of the Philippines,” RA No. 11967 or the “Internet Transactions Act of
2023,” and RA No. 10173, when applicable, shall apply for acts or
omissions committed in the course of motorcycle-for-hire operation.

SECTION 22. Travel Demand and Operational Data. - To assist the DOTr in
transportation planning and management, the MTPPs 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.

SECTION 23. Transitory Provision. - In order to provide a smooth transition in
the full implementation of this Act, the authority and accreditation granted to
existing MTPPs and operators shall continue to be effective until their expiration
or six (6) months from the promulgation of the implementing rules and
regulations of this Act, whichever comes later.

SECTION 24. Implementing Rules and Regulations. - Within ninety (90 days from
the effectivity of this Act, the DOTr shall, in coordination with the LTFRB, LTO,
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 the necessary rules and
regulations to carry out the implementation of this Act.

SECTION 25. 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.

SECTION 26. 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.

SECTION 27. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,

4 &