SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
SECOND REGULAR SESSION
nf liir  
.'fa r^
'17 JUL20 PI :19
RECEIVED 6V,
SENATE
SENATE BILL NO. 
1 5 0 2
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO
AN ACT
RECOGNIZING TRANSPORTATION NETWORK COMPANIES AND 
DRIVERS, 
PRESCRIBING 
REQUIREMENTS, 
GUIDELINES 
AND 
STANDARDS FOR THEIR OPERATION, PROVIDING PENALTIES FOR 
VIOLATION TLIEREOF, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Advances and innovations in technology have transformed the 
transportation landscape in the Philippines. Recently, the riding public have 
enjoyed the safety, convenience, and reliability of technology-enabled 
ridesharing, ride-hailing and carpooling services brought about by the so- 
called Transportation Network Companies (TNC).
The introduction of the Department of Transportation's Department 
Order No. 2015-011 clearly demonstrated the Philippines' commitment to 
modernizing the regulatory environment—focusing on what is best for the 
riding public and the improvement and uplifting of the transportation situation 
in the country. To keep up with technological advances in the transportation 
sector, there is a need to craft progressive legislation responsive to such 
changes.
The enactment of the proposed bill will institutionalize the regulatoiy 
framework sought to be achieved by DO 2015-11 for Transportation Netw^ork 
Companies, Drivers and most especially, their services. Moreover, it will 
establish a clear set of obligations of the TNCs and its drivers to tlie riding 
public. Tlve proposed bill mandates the TNCs to adopt a veliicle safety policy


to ensure the comfort and security of passengers using the transportation 
network services.
Moreover, in addition to meeting the increased demand for mobility, a 
clear legislative regulation for TNCs, its drivers and services, will promote a 
non-conventional form of transportation system that will contribute to 
achieving a safe, efficient and reliable transport services in the country.
In view of the foregoing, the passage of the proposed Transportation 
Network Service Act is earnestly sought.
JOSEPH VICTOR G. EJERCITO


¥1
SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
SECOND REGULAR SESSION 
)
r • V .
lO fficp o( t ilf  ‘-■’•'’ n  'tiir j)
'17 
JU L20 
P i : 1 9
SENATE
SENATE BILL NO. 1502
RECth/tu dV,
7
^
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO
AN ACT
RECOGNIZING 
TRANSPORTATION 
NETWORK 
COMPANIES 
AND 
DRIVERS, PRESCRIBING REQUIREMENTS, GUIDELINES AND STANDARDS 
FOR THEIR OPERATION, PROVIDING PENALTIES FOR VIOLATION 
THEREOF, AND FOR OTHER PURPOSES
Be it enacted in the Senate and the House of Representatives of the Republic of the Philippines 
in Congress assembled:
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CHAPTER I.
GENERAL PROVISIONS
SECTION 1. Short Title. This Act shall be known as the "Transportation Network 
Service Act".
SECTION 2. Declaration of Policy. It is the policy of the State to provide and to 
promote adequate and efficient modes of transportation in the country. Toward this 
end, the State shall enact measures for the regulation of transportation network 
services to ensure that the paramount interest of the public is protected and conserved, 
wThile encouraging free enterprise and economic development.
SECTION 3. Definition of Terms. As used in this Act:
(a) "Board" refers to the Land Transportation Franchising and Regulatory Board 
(LTFRB);
(b) "Passenger" refers to an individual who uses a transportation network 
company's service platform to connect to a driver for transportation network 
services, including all other persons who accompany said individual for the 
duration of such service;


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(c) "Personal vehicle" refers to a motor vehicle that satisfies all of the following 
conditions:
a. owned, leased, or otherwise authorized to be used by the driver;
b. not a public utility vehicle as defined in Republic Act No. 10586 and 
other related laws;
(d) "Service platform" refers to any internet site or online-enabled application 
software or system that permits the pre-arrangement of transportation network 
services;
(e) "Transportation Network Company (TNC)" refers to a business organization, 
whether a corporation, partnership, or sole proprietorship licensed to operate 
in the Philippines, that provides pre-arranged transportation services for 
compensation using an internet-based application or digital platform 
technology to connect passengers and drivers using their personal vehicles;
(f) "Transportation Network Driver (TND)" refers to an individual who
a. satisfies the requirements in this Act;
b. pays a fee to a TNC to connect to a passenger for the purpose of engaging 
in transportation network services; and
c. operates a personal vehicle to engage in transportation network services 
for compensation; and
(g) "Transportation Network Services (TNS)" refers to a transportation of a 
passenger between points chosen by the passenger and that is pre-arranged 
with a TND through tlie use of a TNC's service platform. The TNS begins from 
the moment the TND accepts a request for transportation on the TNC's service 
platform and ends when the TND completes the transaction on the service 
platform or when the trip is complete and the passenger exits the TND's 
velricle, whichever is later.
SECTION 4. Nature of Transportation Network Companies and Drivers. TNDs are 
hereby considered as common carriers for purposes of determining tlie habiUty and 
degree of diligence that must be observed in the course of transportation network 
services, and the presumption of negligence in case of breach of contract of carriage 
shall likewise apply to them.
TNCs shall be required to exercise the diligence of a good father of a family in 
the course of complying with its obligations under this Act and the regulations that 
the Board may issue in relation thereto. TNCs shall be solidarily hable with TNDs in 
case tlie latter has been found guilty of any violation of laws, rules and regulation that 
involves a passenger as defined in this act.
CHAPTER II.
REGULATION OF TRANSPORTATION NETWORK COMPANIES
SECTION 5. Issuance of Permits to TNCs. A person, organization, or entity shall not 
be allowed to operate a TNC without first obtaining a Permit from the Board upon


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compliance with the requirements set fortli by this Act and other reasonable 
conditions as may be provided by the Board.
SECTION 6. Application for Permit. The Board shall grant a Permit to a TNC upon 
determination that all of the following requirements are met:
(a) Submission of application in the form prescribed by the Board. The application 
shall have a minimum requirement that include tire apphcant's name, address, 
tax identification number, and any other information that the Board may deem 
necessary to assess the applicant's qualification;
(b) Proof that the applicant is licensed to do business in the Philippines and a 
resident agent for purposes of service of processes in the Philippines if the 
applicant is a foreign corporation; and
(c) Payment of an apphcation fee to be set by the Board upon filing of the 
application.
The applicant shall notify tire Board of any material change in the information 
included in the application not later than fifteen (15) days after the change occurs. The 
Board shall prescribe a form for the disclosure of material changes.
SECTION 7. Term and Renewal of Permit. A Permit issued by the Board shall be valid 
for a period of three (3) years unless sooner revoked by the Board for any of the causes 
provided under Section 23.
The Board shall prescribe the form and requirements necessary for the renewal 
of a permit.
CHAPTER III.
OPERATION OF TRANSPORTATION NETWORK COMPANIES
SECTION 8. Requirements for Transportation Network Companies. A transportation 
network company shall:
(a) Create an application process for a person to apply for registration as a 
transportation network driver;
(b) Maintain an updated database of the TNC's transportation network drivers;
(c) Maintain a website with the following information:
a. The TNC's customer service telephone number and/ or electronic mail 
address;
b. The TNC's zero tolerance policy established under this Act;
c. The procedure for reporting a complaint about the TND;
d. Conduct, or have a third party conduct, a safety inspection of the 
personal vehicle that a TND will use before the motor vehicle may be


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used to provide transportation network services and ensure compliance 
with the TNC's vehicle safety pohcy estabhshed under this Act; and
e. Maintain an insurance policy as required under Section 17 of this Act.
SECTION 9. Zero Tolerance for Illegal Drug or Alcohol Use. Every TNC shall develop 
and implement a policy prohibiting any TND from using illegal drugs or alcohol or 
any other substance that may render the TND incapable of driving safely wliile tire 
TND is engaged in transportation network services for the TNC or is logged onto the 
TNC's service platform. The TNC shall;
(a) Establish die complaint procedures for reports of suspected violations of the zero 
tolerance pohcy;
(b) Conduct an investigation upon receipt of a complaint that the TND violated the 
zero tolerance pohcy required under this Section and immediately suspend a 
TND's access to its service platform for the duration of the investigation;
(c) Initiate and/or refer the filing of appropriate charges of the erring TND to 
government agencies;
(d) Maintain records relevant to the requirements of this Section for the purposes of 
enforcement.
SECTION 10. Vehicle Safety Pohcy. TNCs shall adopt a vehicle safety pohcy to ensure 
the comfort and security of passengers using transportation network services. Such 
policy shah observe the following minimum standards:
(a) transportation of passengers in numbers exceeding the manufacturer's 
designed seating capacity shah be prohibited, notwithstanding the state's 
pohcy of encouraging ride-sharing;
(b) vehicle must be road-worthy and compliant with vehicle emission standards 
but, in any case, must not be more than ten (10) years old from date of 
manufacture; and
(c) vehicle must be equipped with proper tools and equipment.
SECTION 11. Fare Setting and Disclosures. A TNC is hereby authorized to set fares 
but shall disclose the fare calculation method, the apphcable rates being charged, and 
the option for an estimated fare to a passenger before the passenger arranges a trip 
with a TND subject to rules and regulation imposed by the Board.
If a TNC utilizes dynamic pricing to incentivize drivers in an effort to maximize the 
supply of available vehicles on the service platform to match the demand for rides and 
increase reliability, the service platfonn must:
(a) Provide clear and visible indication that dynamic pricing is in effect prior to 
requesting a trip;


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(b) Include a feature that requires passengers to confirm that they understand that 
dynamic pricing will be applied in order for the trip request to be completed; 
and
(c) Provide a fare estimator that enables the user to estimate the cost under 
dynamic pricing prior to requesting the trip.
Notwithstanding the preceding paragraph, dynamic pricing may be suspended 
during abnormal market disruptions, such as but not hmited to any change in the 
ground transportation market, whether actual or imminently threatened, resulting 
from severe weather disturbances and natural calamities, failure or shortage of electric 
power or other source of energy, strike, civil disorder, war, military action, national 
or local emergency, or other cause of an abnormal disruption of the market resulting 
in a disaster or the declaration of a state of emergency.
SECTION 12. Electronic Receipt. Witliin a reasonable time after the completion of a 
trip, a TNC shall transmit an electroiric receipt to tire passenger's electronic mail 
address or mobile application containing the origin and destination of the trip; the 
total time and distance of the trip; and breakdown of the total fare paid, if any.
SECTION 13. Identification of Transportation Network Drivers and Vehicles. TNCs 
shall make available to each prospective passenger, on its service platform, the 
photograph of the TND and the license plate number and description of the TND's 
vehicle. TNDs shall display tire TNC's trade dress on the vehicle at all times it is being 
used to provide transportation network services.
SECTION 14. Confidentiality of Passenger Information. TNCs shall not disclose a 
passenger's personally identifiable information to any other person unless:
(a) The passenger consents to the disclosure;
(b) The disclosure is required by a legal obligation; and
(c) The disclosure is necessary to protect or defend the terms of use of the service 
or to investigate a violation of those terms.
In addition, a TNC shall be permitted to share a passenger's name and telephone 
number with a TND for the sole purpose of facilitating communication between the 
passenger and the driver regarding pre-arranged trips. TNCs shall prohibit the use by 
TNDs of a passenger's name, telephone number, or other personal information for any 
purpose other than tliose listed in tliis Section.
SECTION 15. Requirements for Transportation Network Drivers. An individual may 
submit an application to a TNC for registration as a TND.
(a) Before approving an application, a TNC shall;


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Require the individual to submit an application that includes at least all 
of the following:
i. The individual's name, address, and age;
Information on the individual's professional driver's license; 
Proof of motor vehicle registration for the personal vehicle the 
individual will use to provide TNS through the TNC;
Proof of availability of an off-street parking space for the vehicle 
that he will use to provide TNS; and
Proof of motor liability insurance coverage as required under 
Section 17 of tlris Act.
Conduct a review of the individual's driving history; and 
Conduct, or have a third party conduct, a criminal background 
checks for the individual.
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b. A TNC shall not approve an apphcation submitted under subsection (a) 
of this Section and shall permanently disquaUfy an appUcant who: 
i. is below eighteen (18) years of age;
has been sentenced by final judgment for an offense involving 
moral turpitude or for an offense punishable by one (1) year or 
more of imprisonment, within two (2) years after serving 
sentence;
has been found to have committed, within three (3) years prior to 
the apphcation, any violation of laws, rules and regulations 
governing land transportation;
A person whose apphcation as TND has been approved shall be issued a TND 
Certificate which shall contain the name, address and picture of the driver, and the 
registration plate number of the vehicle that he will use. The form of the certificate 
shall be approved by the Board.
Nothing in this Section shah be mterpreted to prevent a TNC from imposing 
additional standards or requirements for the registration of TNDs.
SECTION 16. Drivers as Independent Contractors. TNDs shall be independent 
contractors and not employees of the TNC if all of the following conditions are met:
(a) TNC does not prescribe specific hours during which a TND must be logged 
into the TNC's platform;
(b) TNC does not assign a TND particular territory in which to operate; and
(c) TNC does not restrict a TND from engaging in any other occupation or 
business.
Section 17. Insurance Requirements. TNCs and TNDs shall both maintain insurance 
policies to cover claims for incidents involving vehicles and drivers while they are 
providing transportation network services. The Board shah determine, upon 
consultation with stakeholders, the insurance coverage, including the types of


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coverage and the limits for each coverage, that TNCs shall maintain during the 
validity of their permit.
In every instance where insurance maintained by a TND has lapsed, failed to provide 
the required coverage, denied a claim for a required coverage, or otherwise ceased to 
exist, the insurance maintained by a TNC shall provide the required coverage.
A TNC shall neither require nor include a hold harmless or indemnification clause in 
the terms of agreement with a TND. Such clause, if included in the agreement, shall 
be an absolute nullity.
In the event of an accident, a TND shall provide insurance coverage information 
directly to interested parties, insurers and investigating police officers, upon request.
Section 18. Sheet Hails. It shall be prohibited for TND to solicit or accept street hails 
or otherwise provide transportation for compensation tliat are not pre-arranged 
through a TNC's service platform.
Section 19. Cash Payments. A TND may not solicit or accept cash payments or tips 
over and above the fare calculated by the TNC's service platform and reflected in the 
electronic receipt required under Section 12.
Section 20. Fleet Service. TNCs shall not be aUowred to have tlieir own fleet service or 
be authorized to enter into an agreement with a fleet operator to provide 
transportation network services. For purposes of this Act, a person who operates more 
than one (1) motor vehicles shall be considered a "fleet operator" and shall not be 
registered by the TNC with its service platform.
A TND shall not be allowed to register or apply two (2) or more motor vehicles to be 
used for transportation network services to any TNC.
Section 21. Tax Treatment. The Bureau of Internal Revenue shall determine the tax 
liability of TNCs and TNDs and provide the appropriate guidelines for compliance 
therewith.
CHAPTER IV.
ENFORCEMENT
Section 22. Regulatory Authority. The authority of the Board shall be limited to the 
issuance of permit to and regulation of TNCs to ensure compHance by TNCs with tire 
provisioirs of this Act. Such authority shall not include jurisdiction to adjudicate 
private causes of action arising from the provision of transportation network services.
Section 23. Disciplinary Proceedings. The Board, after due notice and hearing, may 
deny an appheation for a permit, limit, suspend, or revoke a permit if the TNC:
(a) Makes a material misrepresentation in any appheation filed under this Act or 
rules of tire Board;


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(b) Fails to comply with the provisions of tliis Act or any rule promulgated 
pursuant to this Act;
(c) Violates any other law that substantially relates to the operation of TNCs;
(d) Fails to cooperate with the Board, or fails to timely respond to a request for 
information by the Board, in coimection with an investigation pursuant to this 
Act; or
(e) Fails to maintain the qualifications for a permit;
(f) Violation of other existing laws of the Philippines.
In addition to denial of application or other action under the immediately 
preceding paragraph, the Board may assess against a TNC for each violation 
enumerated thereunder, a fine not exceeding One Million Pesos (PI,000,000,00).
Section 24. Penalties. The Board shall determine the amount of the administrative 
penalty to be imposed on a person, firm, corporation or entity found violating the 
provisions of this Act, after considering the following factors:
(a) The seriousness of the violation or failure to comply, including the nature, 
circumstances, extent, and gravity of the violations, and the harm or injury that 
may arise as a result of the violation;
(b) The history of contraventions of or failure to comply;
(c) The efforts made to correct the violation; and
(d) Any other factor that may be just and reasonable under the circumstances.
Section 25. Fees and Other Charges, lire TNCs shall be subject to an aimual 
supervision fee, to be determined by the Board and subject to the approval of the 
Secretary of the Department of Transportation. The Board shall promulgate rules and 
regulations governing tlie collection of such fees, which shall likewise be review^ed 
periodically and any proposed increase shall be published in two (2) newspapers of 
general circulation.
Section 26. Records. AU TNCs shall maintain passenger trip records for at least one (1) 
year from the date the trip was completed. TNCs shall also maintain all records 
concerning each TND for at least five (5) years after the date on which the TND ceases 
to engage in transportation network services for the TNC.
The Board shall have the authority to examine records of TNCs, for the purpose of 
enforcement of this Act, including a random sample of the TNC's records related to 
pre-arranged rides and TNDs. Such examinations shall be conducted during wrorking 
horns and shall not occur more than two times per year unless necessary to investigate


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a complaint. Records obtained by the Board, pursuant to this Section shall be kept 
confidential, except as may be required by I^w.
Section 27. Reportorial Requirement. A transportation network company shall 
transmit a quarterly report to the Board providing an accounting of the number of 
vehicles it has registered to operate, number of trips provided, estimated number of 
passengers served, and any other information that the Board may deem necessary for 
the effective enforcement of this Act.
CHAPTER V.
FINAL PROVISIONS
Section 28. Implementing Rules and Regulations. Within sixty (60) days from the 
effectivity of this Act, the Board shall promulgate the implementing rules and 
regulations as may be necessary to ensure the efficient and effective implementation 
of this Act.
Section 29. Separability Clause. If any provision or part hereof is held invalid or 
imconstitutional, the remainder of the provision not otherwise affected shall remain 
vahd and subsisting.
Section 30. Repealing Clause. Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to, or 
inconsLstent witli, the provisions of this Act is hereby repealed, modified or amended 
accordingly.
Section 31. Effectivity. This Act shall take effect after fifteen (15) days following its 
pubheation in at least two (2) newspapers of general circulation.
Approved,