ENTATIVES

Republic of the Philippines 2 = a
HOUSE OF REPRESENTATIVES 9 **2-GEEVEIS

Quezon City sige 04 AUG 2016
incr Gm
SEVENTEENTH CONGRE:! BY:

First Regular Session

e*STRATION UNIT
WES ANG NOT SERVICE

HOUSE BILL No. 9530

Introduced by REP, JULIETTE T. UY

EXPLANATORY NOTE

‘This bill aims to enable local government units (LGUs) to regulate the operation of motorcycles-
for-hire — commonly called habal-habal — in their respective areas of jurisdiction,

‘The local people in the provinces, most especially those residing in the hinterland areas and even
in some urban centers in Luzon, the Visayas and Mindanao, have only the motorcycles-for-hire as
the only mode of transportation for passengers and small cargo.

Despite the acceptance of motorcycles-for-hire and the now common operations of the same by
the traveling public, existing laws consider these as illegal. Current transportation laws prohibit
the registration of motorcycles-for-hire since Republic Act 4136, enacted on June 20, 1964,
classifies motorcycles for private use only

Since habal-babal cannot be registered as vehicles for hire, the proliferation of the same is a clear
and present danger for the riding public. This is because passengers who get injured or hurt in
accidents involving this mode of transportation cannot claim medical benefits or reimbursements
since motorcycles-for-hire are not covered by any form of insurance. Habal-habal operators and
drivers are hence vulnerable to a host of traffic violations and fines, legal suits and even
unscrupulous traffic enforcers.

A policy solution to this problematic reality has been long overdue. Regulating the business
operations of motorcycles-for-hire shall definitely protect the riding public, the operator and the
driver. Regulating haba-habal operations shall enable operators of the same to register their
motorcycles as public transport and thereby be covered by the law on common carriers.

The safety of the riding public and the maintenance of existing low-cost transport in the rural and
remote areas is the overriding objective of this measure. This bill shall ultimately authorize
municipalities and cities to grant franchises for the operations of habal-habal ot motorcycles-for-
hire in their respective jurisdictions,

The immediate passage of this bill is earnestly sought.

Apprond,



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

2530

HOUSE BILL No.

_ Introduced by REP. JULIETTE T. UY

AN ACT
REGULATING MOTORCYCLES-FOR-HIRE OR HABAL-HABAL, THEREBY
AUTHORIZING CITIES AND MUNICIPALITIES TO GRANT FRANCHISES FOR
‘THEIR OPERATIONS, AMENDING FOR THE PURPOSE SECTIONS 447 AND 458
OF REPUBLIC ACT NO. 7160, AS AMENDED, OTHERWISE KNOWN AS THE
LOCAL GOVERNMENT CODE OF 1991, AND SECTION 7 OF REPUBLIC ACT 4136,
OTHERWISE KNOWN AS THE LAND TRANSPORTATION AND TRAFFIC CODE

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 2014.”

SECTION 2. Declaration of Policy. - It is the policy of the State to safeguard public interest,
provide and regulate basic services, and promote safe, coordinated and efficient transportation
services to the people. The roads and tails in the rural, mountainous areas of the country’s
provinces, and even side streets in some urban centers are not passable by tricycles and four-
wheeled vehicles. The mode of transportation accessible to the people shall be recognized by the
State in reality and in actual policy

‘The local governments, particularly the cities and municipalities, who are at the frontline in the
delivery of government services, are hereby mandated to regulate the operations of motorcycles-
for-hire known in the provinces as habal-babal.

SECTION 3. Definition of Motorcycle-for-Hire. ~ For the purposes of this Act, motorcycle-
for-hire or habal-habal shall denote any motorcycle that is designed and customized to carry
passengers, goods and other small cargo for a fee as a common cartier. Motorcycles-for-hire or
habal-babal operate in the rural and urban areas of the country, especially in hilly, sloping and
mountainous barangays that are inaccessible to tricycles, jeepneys, buses and other forms of
transportation.

SECTION 4. Amendments. - Section 447 of Republic Act No. 7160, as amended is hereby
amended to read as follows:

“SEC. 447. Powers, Duties, Functions and Compensation. — (a)
“Xxx.
(3) (vi) Subject to the guidelines prescribed by the Department of ‘Transportation and

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Communications, regulate the operation of MOTORCYCLES-FOR-HIRE OR
HABAL-HABAL AND tricycles and grant franchises for the operation thereof within
the territorial jurisdiction of the municipality;”

Section 458 of Republic Act No. 7160, as amended is hereby amended to read as follows:

“SEC.

58. Powers, Duties, Functions and Compensation. — (a)

2

3) (vi) Subject to the guidelines prescribed by the Department of Transportation and
Communications, regulate the operation of MOTORCYCLES-FOR-HIRE OR
HABAL-HABAL AND tricycles and grant franchises for the operation thereof within
the territorial jurisdiction of the city, and;”

Section 7 of Republic Act No. 4136 is hereby amended to read as follows:

“SEC. 7. Registration Classification. — The classification of vehicles shall be:

‘XXX.

“(b) For Hire. ~ Motor vehicles registered under this classification are those covered by
cettificates of public convenience, or special permits issued by the Board of
‘Transportation, AND IN THE CASE OF MOTORCYCLES-FOR-HIRE OR
HABAL-HABAL, A FRANCHISE ISSUED BY THE CITY OR MUNICIPAL
LOCAL GOVERNMENT UNIT and shall be subject to the provisions of the Public
Service Act and the rules and regulations issued thereunder, as well as the provisions of
this Act.

“xxx,

SECTION 5. Local Franchise. - ‘The municipality or city shall receive, process and evaluate all
applications for the grant of franchise to operate motorcycles-for-hire or habal-habal within their
territorial jurisdiction

SECTION 6. Documentary Requirements. - Any person applying for a franchise to operate
motorcycles-for-hire or habal-haba/ shall submit the following:

a. Certification from the Punong Barangay that the applicant is a bona fide resident of the
barangay within the city or municipali

b. Official receipt and Certificate of Registration of the motorcycle unit,

c. A deed of undertaking by the owner and/or operator of the unit applied for will be
operated only within the said city or municipality; and

4. Insurance coverage for third party liability.

SECTION 7. Franchise Issuance. - After evaluation and favorable consideration of the
application, the same shall be endorsed to the Sangguniang Panglungsod or Sangguniang Bayan
for the issuance of a franchise for the operation of motorcycle-for-hire or habal-habal within the
territorial limits of the city or municipality. ‘The franchise shall indicate the places and/or routes

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where the motorcycle-for-hire or haba-habal is authorized to operate, the maximum number of
allowable passengers, the maximum cargo weight limit, and the fares to be charged.

‘The authority granted local government units to regulate motorcycles-for-hire or babal-habal shall
be limited and confined to the boundaries of the city or municipality. ‘The local government unit
shall only grant franchises to motorcycles-for-hire or habal-habal operating within the city and
municipality and owned by bona fide residents thereof.

In cases wherein travel between two or more areas governed by to or more local government
units can only be possible via motorcycles-for-hire or habal-habal due to the absence of any other
mode of public transportation, the cities and municipalities traversed by motorcycles-for-hire or
habal-babal shall execute a Memorandum of Agreement that shall delineate the terms of reference
‘on how registered motorcycles-for-hire or hubal-habal shall operate in routes that cover two or
more boundaries.

SECTION 8. Issuance of Plate. — Upon receipt of the franchise to operate duly issued by the
city or municipality, the Land ‘Transportation Office (L:TO) shall issue the new “for hire” plate to
the motorcycle-for-hire or habal-habal franchisee, upon the surrender of any previously issued
plate, as the case may be.

SECTION 9. Prohibitions. ~ Motorcycles-for-hire or habal-habal are prohibited from operating
along national highways or other roads where the allowed maximum speed is greater than forty
(40) kilometers per hour, except to cross the same, Provided, That they may be allowed, under strict
limitations, to use the said highways and roads if special lanes are available for the operations
motoreycles-for-hire or habal-babal

SECTION 10. Penalties. ~ ‘The owner of a motorcycle-for-hire or habal-habal who fails to secure
a franchise to operate shall be fined the amount of not less than Three Thousand Pesos
(P3,000.00) up to not more than Five Thousand Pesos (P5,000.00) and the motorcycle unit shall
be impounded by the local government unit until the registration of the same. These set of
penalties shall be subject to the review and appropriate revisions by the Department of
‘Transportation and Communications every three (3) years after the effectivity of this Act.

SECTION U1. Implementing Rules and Regulations. - ‘The Secretary of Transportation and
Communications, in coordination with the Leagues of Cities and Municipalities, shall within sixty
(60) days after the effectivity of this Act, issue the appropriate rules and regulations for the
implementation of the provisions of this Act.

SECTION 12. Severability “The provisions of this Act are declared to be severable, and if any
provision, word, phrase, or clause of this Act or the application thereof to any person or entity
shall be held invalid, such invalidity shall not affect the validity of the remaining portions of this
‘Act.

SECTION 13, Repealing Clause. ~ All laws, presidential decrees, executive orders, presidential
proclamations, rules and regulations, administrative orders, memorandum circulars, or parts

thereof inconsistent with this Act are also hereby repealed or modified accordingly.

SECTION 14, Effectivity. — This Act shall take effect after fifteen (15) days from publication in
at least two (2) newspapers of general circulation.

Approved

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