Republic of the Philippines
HOUSE OF REPRESENTATIVES,

Quezon City
19TH CONGRESS
First Regular Session

House Bill No.” __7034 _

Introduced by: REP. JOEL R. CHUA.

Explanatory Note

Lack of mobility and traffic congestion remain to be a significant hurdle
to economic growth and individual well-being in the Philippines. Due to
inadequate public transport options, majority of Filipinos turn to private
vehicles. One transport solution that has proven to be reliable, safe, convenient,
and affordable is motorcycle taxis. Millions of Filipinos, mostly those in lower
socio-economic classes, own at least one motorcycle. The use of motorcycles to
provide motorcycle-for-hire services will help the government fill a
transportation gap, efficiently transport passengers from point to point, and
create job opportunities for bikers so they can earn a living wage for their
families by giving them the proper tools, e.g., safety training, for them to
become productive members of society.

While private vehicles dominate road share, motorcycles are, in fact, the
most widely used vehicle by Filipinos. According to the Land Transportation
Office, there are an estimated 18 million motorcycles plying the roads in the
Philippines.

The regulation of motorcycles-for-hire as an alternative transport option
stands to benefit both the commuting public by addressing mobility issues and
the Filipino families who now have an opportunity to unlock a new income
stream and uplift their lives. Motorcycles-for-hire, particularly motorcycle
taxis, have the added benefit of providing meaningful livelihoods to the
relatively unskilled sectors of the workforce. As drivers only need to drive well
and safely, many who would otherwise be under or unemployed elsewhere are
able to earn a sufficient living wage by offering their transportation services
through Motorcycle Taxi Platform Providers. To illustrate, the current
minimum wage rate in Metro Manila is approximately PhP500.00 a day; a biker
has the capacity to earn up to PhP1,500.00 per day. The potential impact of a
motorcycle-for-hire law cannot be overstated.


Due in part to the growing need for more alternative transport options
as well as creation of jobs for millions overnight, ridesharing powered by
advances in technology, as popularized by platforms such as Uber, has become
mainstream all over the world. This bill intends to address the need for the
regulation of ridesharing using motorcycles-for-hire.

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

Philippines


Philippines
HOUSE OF REPRESENTATIVES
Quezon City
19™# CONGRESS
First Regular Session

House Bill No._ 7034 _

Introduced by: REP. JOEL R. CHUA

AN ACT
REGULATING THE OPERATION OF MOTORCYCLES-FOR-HIRE

Be it enacted by the Senate and the 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) _ BIR refers to the Bureau of Internal Revenue

b) — CPCrefers to the Certificate of Public Convenience issued to riders
in order that they may operate as a motorcycle-for-hire;

©) DTT refers to the Department of Trade and Industry;

d) — DTI-BPS refers to the Department of Trade and Industry - Bureau
of Philippine Standards;

e)  DOTrrefers to the Department of Transportation;


f)  LTFRB refers to the Land Transportation Franchising and
Regulatory Board;

g) LTO refers to the Land Transportation Office;

h) MMDA refers to the Metropolitan Manila Development Authority;

i) Motorcycle refers to any two (2)-wheeled motor vehicle without
appendages;

i) 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;

k) Motorcycle Taxi Platform Provider or MTPP refers to a natural or
juridical person that provides pre-arranged transportation services for
compensation through applications or digital platforms that utilize internet-
based technology to connect clients with riders to facilitate a contract of carriage
using a motorcycle-for-hire;

1) Multi-homing refers to an approach where a rider may be
accredited under more than one MTPP, allowing such rider to utilize more than
one application or digital platform in delivering transport services;

m) _ Passenger refers to a natural person being transported from point
to point by a rider using a motorcycle-for-hire;

n) _ Rider refers to the driver of the motorcycle-for-hire;

0) SEC refers to the Securities and Exchange Commission; and

Pp) _ TESDA refers to the Technical Education and Skills Development
Authority.

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. This Act shall not apply to motorcycles used exclusively for the
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 Republic Act No. 386, otherwise
known as 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. An MTPP
should exercise due diligence and reasonable care in accrediting riders 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 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
DOTr, upon the recommendation of the 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 appropriate accessories, such as step board or
footrest, 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 areas with an existing and operating
MTPP is vested in the LTFRB. The LTFRB shall set forth in the CPC granted to
riders the terms and conditions to be observed in the operation of motorcycles-
for-hire. Such CPC shall allow the rider to engage in multi-homing operation
upon accreditation with other MTPPs. 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
riders that may be granted CPCs, the demand for their services shall be the basis
for the LTFRB, 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.

For provinces and chartered cities outside of metropolitan areas, the
authority to issue a CPC shall be delegated to the provincial governor and the
mayor, respectively. The application for a CPC shall be submitted to the local
government unit 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 local government unit concerned: Provided
further, That the local government units may recommend the appropriate
number of motorcycles-for-hire 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 CPCs, the LTFRB and local
government units shall establish a system of processing that shall be


incorporated in the rules and regulations to be issued pursuant to Section 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 a rider
upon submission of or and compliance with the following requirements:

a) Proof of Filipino citizenship;

b) _ Proof of accreditation by the LTO or the relevant MTPP;

c) Certificate of Registration duly issued by the LTO for the
motorcycle intended to be used as a motorcycle-for-hire by the rider;

d) Appropriate space to serve as a garage for the motorcycles-for-
hire;

e) Insurance coverage for any death or injury that may occur to a
rider, passenger or any third party or for damage to property by reason or on
occasion of the operation of the motorcycle-for-hire; and

f) Taxpayer Identification Number issued by the BIR.

SEC. 10. Qualifications of Motorcycle-For-Hire Riders. - A rider must
have a driver's license issued by the LTO and must be accredited by the LTO or
the relevant MTPP in order to operate a motorcycle-for-hire. The LTO shall
promulgate the necessary guidelines setting forth the requirements for the
accreditation of riders, including the content of theoretical and practical
examinations that are appropriate for the operation of motorcycles-for-hire.
Riders must undergo a safety and skills training program with a curriculum
duly certified by the TESDA as a requirement for accreditation. Accredited
riders must attend at least one safety and skills training seminar every year to
maintain their accreditation. Riders that intend to operate as motorcycles-for-
hire under MTPPs may apply for accreditation with the relevant MTPP. MTPPs
shall implement an accreditation process for bikers that complies with the
guidelines promulgated by the LTO.

SEC. 11. Accreditation Requirements of MTPPs. - MIPPs must possess
and maintain the following minimum requirements for its accreditation:

a) Proof of Filipino citizenship;

b) Proof of financial capacity;

©) DT lor SEC registration;

d) Taxpayer Identification Number issued by the BIR;
e) An Accident Quick Response System;


f) A training center, duly certified by the LTO and TESDA, to
evaluate and determine the competence of riders.

The LTFRB may, as a requirement for renewal of accreditation, consider
the previous safety record of the MTPP as certified by the LTO during the
effectivity of its accreditation being applied for renewal.

Five years from the effectivity of this Act, the DOTr may, upon the
recommendation of the LTFRB, allow accreditation of foreign or foreign-owned
MTPPs.

SEC. 12. Operation of Motorcycle-For-Hire. - Motorcycles-for-hire may
be allowed to operate using MTPPs or designated terminals. To maximize its
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 CPC: Provided, That a motorcycle-for-hire
accredited by an MTPP may not be allowed to operate as motorcycle-for-hire
without using the platform of the MTPP.

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 riders shall be in accordance with the fare structure
and within the parameters determined, prescribed and issued by the LTERB, 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, time, and road conditions. The
LTFRB shall periodically review the fare structure and parameters of
determining the applicable fares, subject to the approval of the DOTr.

In the case of motorcycle-for-hire operating outside the platforms of
MTPPs, the fare shall be determined by the LTFRB after public consultation
with local government units, riders, and other stakeholders, with the approval
of the DOTr.

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 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 rider.

SEC. 16. Accident Quick Response. - An 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 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 an MTPP’s platform. When
necessary, the MTPP shall advance any amount necessary for the admission of
such injured person or persons to a hospital or medical facility up to the
maximum amount of the insurance coverage of the rider.

SEC. 17. Enforcement. - To ensure the safe and secure operation of
motorcycles-for-hire, the LTO shall deputize local government units 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 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 CPC shall be
endorsed by the LTO enforcement officers, deputized local government unit
enforcers and MMDA personnel to the LTFRB for appropriate action.


The foregoing shall not preclude MTPPs from exercising the power to
impose sanctions such as suspension or blacklisting of their riders on account
of violations 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. In the event that the
erring rider is accredited under an MTPP, the MTPP shall also be penalized.
The table of penalties shall be included in the rules and regulations to be issued
pursuant to Section 21 of this Act.

b) 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, MTPPs shall, not later than thirty
(30) calendar days after the end of every calendar 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
MTPPs 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 LTERB,
LTO, DTL-BPS, 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. Amendatory and Repealing Clause. - The specific provisions of
Republic Act No. 4136 that are inconsistent with this Act are hereby amended
or repealed accordingly. All other 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 likewise
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,