Republic of the Philippines
House of Representatives
Quezon City

NINETEENTH CONGRESS
First Regular Session

House BillNo.__ 360

EXPLANATORY NOTE

This Bill aims to provide a safe and efficient alternative mode of public
transport by allowing and regulating the use of motorcycles-for-hire as public
utility.

“Habal-Habal” and motorcycle ride-sharing services are commonly
accepted as a means of public transportation in rural and metropolitan areas.
However, these motorcycles-for-hire are not registered as such. Their business
operations are considered illegal and are not covered by any kind of insurance.

This Bill shall require operators of motorcycles-for-hire insurance
coverage for the driver, rider and third party. It shall also mandate the
Department of Transportation (DOTr) and the Land Transportations and
Regulatory Board (LTFRB) to coordinate with local government units to
prescribe the routes and require the establishment of terminals.

Regulating the business operation of motorcycle-for-hire will protect both
the operator and the riding public. Hence, operators of motorcycles-for-hire are
eventually given the authority to register their motor vehicle as a public transport
and are obliged to be governed by the law on common carrier.

Support for this bill is earnestly requested from my colleagues.

MARIA Al AS. GARCIA
Third istrict, Bataan


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Republic of the Philippines
House of Representatives
Quezon City

NINETEENTH CONGRESS
First Regular Session
House Bill No.__ 360

Introduced by Representative Maria Angela S. Garcia

AN ACT
PROVIDING REGULATION FOR 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, it is hereby declared that the State shall allow the regulated operation of
motorcycles-for-hire to provide the public with an alternative mode of public
transportation, which is sufficient, safe, secure and economical.

Towards this end, the State shail 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;

¢) Multi-homing refers to an approach where an operator may accredit a
particular motorcycle-for-hire to more than one transport network company
(TNC) or Online E-commerce Platform Provider (OEPP) allowing the same to
utilize more than one digital platform in delivering transport services;

d) Online E-commerce Platform Provider (OEPP) 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

9) Transportation Network Company (TNC) 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. For this purpose, goods 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 Carers. — 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. TNCs and OEPPs should exercise due diligence and
reasonable care in accrediting motorcycle-for-hire operators and drivers
operating 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


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Section 7 of this Act. The LTO shall ensure the roadworthiness of all
motorcycles-for-hire before thea 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 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 riders and
passengers.

No modifications shail 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 relevant 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 issued by the DOTY: Provided, That in determining the number
of units as far as motorcycle-for-hire operating under the TNCs and OEPPs are
concerned, the demand 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 city or municipality under which jurisdiction the


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motorcycle-for-hire intends to operate: Provided, That a motorcycle-for-hire
may only operate within the territorial jurisdiction of the local government unit
(LGU) concerned: Provided, further, That the LGUs may recommend the
number of units that may be allowed to operate appropriate to the demand of
the locality.

To ensure the fast and efficient processing of franchises, the LTFRB and
LGUs shall establish a system of coordination which shall be included in the
implementing rules and regulations 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 or determination of the presence of the following
requirements:

a) Citizenship requirement in accordance with existing law;

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) Garage for operators applying for the franchise of three (3) or more
motorcycles-for-hire;

e) 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

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 or
conducting theoretical and practical examinations, 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 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.


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SEC. 11. Accreditation Requirements of TNCs and OEPPs. — A TNC or
OEPP must be duly registered with the Securities and Exchange Commission
(SEC).

A TNC, or OEPP which utilizes motorcycles-for-hire in its business
operations, before being allowed to operate as such, 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 OEPPs using motorcycles-for-
hire.

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

a) Citizenship requirement under existing law;

b) Financial capacity;

c) SEC registration;

d) BIR Tax Identification Number;

e) Anestablished Accident Quick Response System;

f) Capability to evaluate and determine the competence of riders
through an established training center, duly certified by the LTO and TESDA.
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 on 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, local ordinances and other applicable laws: Provided, That in no case
shall a motorcycle-for-hire operate beyond sixty kilometers per hour (60kph).


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SEC. 13. Fare Setting. — The fares, surcharges and other transportation
fees that may be charged by operators, OEPPs or TNCs for motorcycle-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 and subject to the approval of the DOTr.
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 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 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 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 cover 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 shall be part of the booking app options of the digital platforms. When
necessary, the TNC or OEPP shall advance any amount necessary for the


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admission of such injured person or persons to the hospital or medical facility
up to the insured amount.

SEC. 17. Enforcement. — To ensure the safe and secure operation of
motorcycle-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 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 Republic Act No. 7924, 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 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 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 commission or omission of the following 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 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 Republic Act No. 7394, otherwise known as the
“Consumer Act of the Philippines” and Republic Act No. 10173 or the Data
Privacy Act of 2012, 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 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. — in order to provide a smooth transition in
the full 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 implementing rules
and regulations of this Act, whichever comes later.

SEC. 21. Implementing Rules and Regulations. — Within ninety (90) days
from the effectivity of this Act, the DOTr, 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, shall promulgate the necessary
rules and regulations to carry out the 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. — Ail 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,