Republic of the Philippines
HOUSE OF REPRESENTATIVES 99 ut 2013

Quezon City, Metro Manila [os PM.

Sixteenth Congress

First Regular Session

HOUSE BILL NO. 1238

Introduced by Honorable Pedro B. Acharon, Jr.

EXPLANATORY NOTE.

This bill seeks to grant the local government units the power to regulate
the operation of motorcycles-for-hire in their areas of jurisdiction.

It is common knowledge that in many areas in the country the only mode
of transportation is the motorcycle-for-hire. Although commonly accepted as a
means of public transport in many areas, motorcycles-for-hire are not registered
as such. Thus, their business operations are illegal and are not covered by any
kind of insurance.

The proliferation of motorcycles-for-hire as a means of transportation is
detrimental to the riding public because passengers cannot claim any benefit or
reimbursement for medical expenses in case of accidents.

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 public transport
and are obliged to be governed by the law on common carrier.

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

PEDRO B. A RON, JR. ‘


we YAH RYne

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

Sixteenth Congress
First Regular Session

238
HOUSE BILL NO. a

Introduced by the Honorable Pedro B. Acharon, Jr.

AN ACT
REGULATING THE BUSINESS OPERATION OF MOTORCYCLES-
FOR-HIRE AND FOR OTHER PURPOSES

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
“Motorcycle-For-Hire Act of 2013.”

SEC. 2. Declaration of Policy. — It is the policy of the State to render
basic services to the people. In many areas in our country where roads are
not passable by tricycle and any four-wheeled vehicles, the peoples’
initiatives in solving their transportation problems must be respected and
recognized with the end in view of instituting effective management thereof,
‘Towards this end, local governments are hereby tasked to regulate the use of

motorcycles-for-hire.


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SEC. 3. Local Franchise. —- The municipality or city shall receive,
process and evaluate all applications for the grant of franchise to operate
motorcycles-for-hire within their territorial jurisdiction. For purposes of this
Act, motorcycle-for-hire refers to a two-wheeled motor vehicle which has
been modified in order to carry or transport passengers or goods for
compensation, offering their services to the public.

a) Any person applying for the grant of franchise to operate a
motorcycle-for-hire shall submit the following documents:

1. Certification of the punong barangay attesting that applicant is a

bonafide resident of the barangay within the city or municipality;

2. Certificate of registration and official receipt of registration

payment for the said motorcycle unit; and

3. A deed of undertaking by the owner that the unit applied for will

be operated within the said city or municipality.

b) After favorable consideration of the application, the same shall
be endorsed to the sanggunian bayan or sangguniang panglungsod for the
issuance of franchise for the operation of motorcycle-for-hire within the
territorial jurisdiction of city or municipality. The franchise shall indicate
the place or route where the motorcycle-for-hire is authorized to operate.

SEC. 4. Issuance of Plate. - Upon receipt of the franchise issued by
the city or municipality, the applicant shall bring the motorcycle unit to the

Land Transportation Franchising and Regulatory Board (LTFRB) for the
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issuance of a new “for-hire” license plate. In case, the motorcycle unit was
previously issued a license plate of different classification, such plate shall
first be surrendered before issuing the new “for-hire” license plate.

SEC. 5. Administrative Boundaries. — The authority granted to local
government unit to regulate motorcycles-for-hire shall be limited and
confined to the boundaries of the city or municipality. The local government
unit may only grant franchise to motorcycles operating within the city or
municipality and owned by residents thereof,

In cases where travel between two (2) municipalities can only be done
by motorcycles-for-hire, in the absence of any other means of public
transportation, the cities or municipalities traversed by the motorcycles-for-
hire shall agree between or among themselves through a Memorandum of
Agreement how incursions of motorcycles-for-hire belonging to another city
or municipality will be treated.

SEC. 6. Limits of Operations. — Motorcycles-for-hire are authorized
to operate on any road within the city or municipality, However, they are
prohibited to operate, except to cross, along the national highway or on any
road which allows a maximum speed greater than 40 kilometers per hour.

The local government unit with jurisdiction over the roads may limit

and fix the routes for motorcycles-for-hire.


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SEC. 7. Insurance Coverage. — For purposes of passenger’s safety,
the owner of motorcycle-for-hire shall, upon registration, procure the
necessary insurance for third party liability.

SEC. 8. Penalty. — The owner of a motorcycle-for-hire who fails to
register its operation shall be fined in the amount of not less than Three
thousand pesos (P3,000.00) but not more than Five thousand pesos
(P5,000.00) and the motorcycle unit shall be impounded until registered.

SEC. 9. Implementing Rules and Regulations. — The Secretary of
Transportation and Communications shall, within sixty (60) days after the
effectivity of this Act, issue the necessary rules and regulations to implement
this Act.

SEC. 10. Repealing Clause. ~ All laws, decrees, executive orders,
rules and regulations and other issuances or parts thereof, inconsistent with
the provisions of this Act, are hereby repealed or modified accordingly.

SEC. 11. Effectivity. — This Act shall take effect fifteen (15) days
following its publication in at least two (2) national newspapers of general
circulation.

Approved,