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

EIGHTEENTH CONGRESS
First Regular Session

4141

HOUSE BILL NO.

Introduced by HON. EDGAR M. CHATTO
First District, Bohol

EXPLANATORY NOTE

Times have changed a lot of the way we do things. Aside from the
development of new technologies especially in communication, finding new purpose
to existing systems such as in transportation proves to be an emerging trend.

Motorcycles, or fondly known as “habal habal” in the rural areas, while
originally intended for transportation, was never envisioned for public
transportation. In recent times, however, the facility of motorcycles for the transport
of passengers as well as goods and small cargoes has seen an exponential growth. The
use of motorcycles responds to the people's requirements of convenience,
expediency, speed, reliability and cost-effectivity.

In the urban areas, resort to motorcycles beats the colossal traffic problem and
saves a lot of time. In the rural areas, motorcycles are indispensable in reaching far
and inaccessible areas.

Hence, as the use of motorcycles are keenly becoming a part of our ‘new
normal’ in terms of transportation, it is the responsibility of the State to regulate it
for the benefit of all. The use of motorcycles as an alternative mode of transportation
must never sacrifice the health and safety of our people.

‘The problem is, the use of motorcycles-for-hire is illegal to date. Republic Act
No. 4136 prohibits their registration as public transport since motorcycles are
classified only of private use. There is a need for a policy-shift by amending the half-
decade old law through the recognition and classification of motorcycles-for-hire as
public transport and within the ambit of common carriers. This way, the driver, the
operator and the riding public will be given ample protection.

In view of the foregoing, the immediate passage of the instant proposal is
earnestly sought.

REP. M. CHATTO


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

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILLNO. __ 4141

Introduced by HON. EDGAR M. CHATTO
First District, Bohol

“AN ACT
ALLOWING AND REGULATING THE USE OF MOTORCYCLES
AS PUBLIC UTILITY VEHICLES, AMENDING FOR THIS PURPOSE
REPUBLIC ACT NO. 4136, OTHERWISE KNOWN AS THE
LAND TRANSPORTATION AND TRAFFIC CODE,
AND FOR OTHER PURPOSES”

Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled:

SECTION 1. Title. — This Act shall be known as the “Motorcycles-for-Hire
Act”.

SEC. 2. Declaration of Policy. — It is the policy of the State to render basic
services to the people and promote their safety and general welfare. Toward this end,
the use of motorcycles as an alternative mode of public transportation is hereby
allowed and regulated in recognition of the need to provide convenience and ease of
commute in urban and rural areas while ensuring public safety and the efficiency of
the transportation system as a whole.

SEC. 3. Section 3 of Republic Act No. 4136 or the Land Transportation and
Traffic Code is hereby amended by adding a new word which shall be defined as
follows:

Kx

“(N) MOTORCYCLES-FOR-HIRE - ANY TWO WHEELED
MOTOR VEHICLE THAT MAY BE REGISTERED WITH THE LAND
‘TRANSPORTATION OFFICE AS FOR HIRE AND MAY BE USED AS A
COMMERCIAL VEHICLE TO TRANSPORT PASSENGERS AND
GOODS: PROVIDED, THAT, FOR TRANSPORTING PASSENGERS,
THE MOTORCYCLE SHALL HAVE A MINIMUM ENGINE
DISPLACEMENT OF THE 125 CUBIC CENTIMETERS AND A
BACKBONE TYPE BUILT.”


SEC. 4. Section 7 (d) of Republic Act No. 4136 is hereby amended to read as
follows:

“Section 7. Registration Classification. — Every motor vehicle shall be
registered under one of the following described classifications:
(a) xxx

(b) xxx

(© xx

(d) Public utility automobiles;

(e) Public utility trucks;

(f) Taxis and auto-calesas;

(g) Garage automobiles;

(h) Garage trucks;

@) Hire trucks;

(j) Trucks owned by contractors and customs agents; [AND]
(k) MOTORCYCLES-FOR-HIRE

Application for registration under these classifications shall be
accompanied by a certificate of public convenience or a special permit
issued by the LAND TRANSPORTATION FRANCHISING AND
REGULATORY BOARD (LTFRB) [Public Service Commission], and
motor vehicles registered under these classifications shall be subject to
the Public Service Law, rules and regulations, as well as the provisions
of this Act.

1K

SEC. 5. Roadworthiness of Motorcycles-for-Hire. — The Land
‘Transportation Office (LTO) shall ensure the roadworthiness of motorcycles-for-hire
before registration or renewal or registration. To further ensure safety, no
modification shall be made on motoreycles-for-hire, except the installation, based on
safe engineering design specifications, of motorcycle luggage carrier, saddlebag, step
board or foot peg and appropriate speed limiter and monitoring device.

SEC. 6. Issuance of Driver’s License. — Pursuant to Section 23-A of the
Land Transportation and Traffic Code, as amended by Republic Act No. 10930, the
LTO shall promulgate the necessary prerequisites and guidelines for the issuance of
licenses to the driver-applicants, including the theoretical and practical examinations
appropriate for motorcycles-for-hire. The LTO shall also ensure the continuous
safety training of licensed drivers of motorcycles-for-hire.

SEC. 7. Fare Setting. — The Land Transportation Franchising and
Regulatory Board (LTFRB) shall determine, prescribe, approve and periodically
review and adjust reasonable fares, rates and other related charges for the operation
of motoreycles-for-hire. The LTFRB may allow motorcycles-for-hire to choose and
use online ride-hailing or pre-arranged transportation platforms, accredited by the
proper government agency under existing laws, but the said companies or platforms


shall comply with this Act and other regulations on motorcycles-for-hire, including
fare setting.

SEC. 8. Prescribing of Routes. — In prescribing routes, the Department of
‘Transportation (DOTr) and the LTFRB shall give priority to higher-capacity vehicles
or mass transit systems in accordance with route rationalization studies.
Motorcycles-for-hire may be allowed to operate for a limited period, with limited
number of units and in specific routes only. As may be determined by the DOTr and
the LTFRB, in coordination with concerned local government units.

SEC. 9. Penalties. - The operation of motorcycles-for-hire in violation of
this Act shall be penalized pursuant to the violations and fines and penalties
provided under existing laws and agency regulations: Provided, That companies, or
the officers or directors thereof, providing on-line ride-hailing or pre-arranged
transportation platforms involving motorcycles without a valid franchise, shall have
solidary liability and shall be penalized accordingly.

SEC. 10. Implementing Rules and Regulations. - The DOTr, LTO and
LTFRB, in collaboration with the Metropolitan Manila Development Authority
(MMDA), the Department of the Interior and Local Government (DILG), Philippine
National Police - Highway Patrol Group (PNP-HPG), Department of Health (DOH)
and other relevant agencies, stakeholders, shall promulgate the necessary
implementing rules and regulations (IRR) within sixty (60 Days from the effectivity
of this Act.

‘The IRR shall include, among others, limitation on the number of riders and
weight or load capacity that can be carried as certified safe by manufacturers, with
the requirement that such limitations must be indicated on the motorcycles; the
applicable speed limits; the road safety and traffic laws and regulations that need to
be complied with; the necessary insurance policy covering the driver, rider and third
party, including extent of liabilities; the designation of terminals; and other
requirements for safety, security and health of the driver and rider.

SEC. 11. Separability Clause. — If for any reason, any part of provision of
this Act is declared invalid, such declaration shall not affect other provisions of this
Act.

SEC. 12. Repealing Clause — Any law, presidential decree or issuance,
executive order, administrative order, rule or regulation contrary to, or inconsistent
with the provisions of this Act is hereby repealed, modified or amended accordingly.

SEC. 13. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,