Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS,
First Regular Session

HOUSE BILL No._304

Introduced by: REP. SALVADOR A. PLEYTO, SR.

EXPLANATORY NOTE

The rapid increase in motorcycle usage as a common means of transportation in the
Philippines is quite remarkable. This trend can primarily be attributed to the heavy congestion
caused by four-wheeled vehicles on major thoroughfares and the rising fuel prices.

Many commuters choose to ride motorcycles for hire to reach their destinations on time,
particularly urban workers who face daily struggles to get to work promptly. In fact,
motorcycle taxis operate as regular common carriers in many Asian countries, regulated by
their governments. This mode of transportation has been embraced for its affordability and
ability to navigate congested city streets effectively.

The proposed measure aims to establish guiding principles and standards for the
operation of motorcycles-for-hire in the country. It also intends to impose appropriate
penalties for drivers and/or operators who violate regulations in their transportation service
business.

In view of the above, the approval of this bill is eamestly sought

SALVADO) PLEYTO, SR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRES
First Regular Session

,
HOUSE BILL No, __304

Introduced by: REP. SALVADOR A. PLEYTO, SR.

AN ACT REGULATING THE OPERATION OF MOTORCYCLES-FOR-HIRE,
IDENTIFYING THEM AS PUBLIC UTILITY MOTORCYCLES, AND FOR OTHER
PURPOSES

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 “Public Utility Motorcycles
Act”.

SEC. 2. Declaration of Policy - The State recognizes the importance of transportation
in economic development. The recent innovations in technology have 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) Motorcycle — refers to any two (2)-wheeled motor vehicle without
appendages;

b) Motoreyele-for-hire — refers to a motorcycle, duly registered as such

sunder 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 my accredit a

particular motorcycle-for-hire to more than one transport network

company or Online E-commerce Platform Provider allowing the same to

utilize more than one digital platform in delivering transport services;

d) Online E-commerce Platform Provider — refers to a natural or juridical
person whose primary business is to provide the digital platform that

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connects online buyers and online sellers to facilitate the sale of products,
goods or services through the internet;

€) 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

g) Transportation Network Company — 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 good which
shall include parcels and mail. This Act shall not apply to motorcycles directly owned by
entities and used in the line of business for 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 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. A transportation network company (TNC) or an Online E~
commerce platform provider (OEPP) should exercise due diligence and reasonable care in
accrediting motoreycles-for-hire operators and drivers that shall operate 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 Section 7 of this Act. The LTO shall ensure the
roadworthiness of all motoreycles-for-hire before their 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 the standards and
specifications of motorcycles that may be allowed to operate as motoreycles-for-hire, taking
into consideration the safety of the riders and passengers.

No modifications shall be made on any motoreycles-for-hire, except for the installation
of the appropriate accessories, such as motorcycle bracket, top box, luggage carrier,
saddlebag, step board or footrest, speed limiter or monitoring devices, in accordance with the
standards and specifications prescribed by the DTI-BPD and as approved by the LTO under
existing laws, rules and regulations.

SEC. 8. Franchising of Motorcycle-for-Hire - The franchising of motorcycle-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 (LTFRBO. ‘The LTERB 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 operations upon accreditation with other TNCs or OEPPs.


‘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 operations, 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 motorcycle-for-
hire units to be operated by TNCs and OEPPs, the demand for their services shall be the basis,
for the LTFRB in the issuance of a franchise.

‘The Franchise fee and any other related charges for operating a motoreycle-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 LGU.
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 LGU
concerned: Provided further, That the LGUs may recommend the appropriate number of
units 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 franchises, the LTFRB and LGUs shall
establish a system of coordination that shall be incorporated in the rules and regulations to be
issued pursuant to Sec. 21 of this Act.

SEC. 9. Requirements for the Grant of a Franchise of Issuance of a Certificate of
Public Convenience (CPC) — A CPC shall only be issued to an operator upon submission of
and compliance with the following requirements:

a) Proof of Filipino citizenship;

b) Proof of accreditation by a TNC or OEPP for motorcycles-for-hire under the
digital platform or business permit issued by a relevant city or municipality for
motorcycle-for-hire not operating under a TNC or OEPP;

c) Certification of Registration duly issued by the LTO:

d) Appropriate space to serve as a garage for a franchise applicant intending to
operate three (3) or more motorcycles-for-hire;

e) Insurance coverage for any death or injury that may occur to a rider, passenger or
any third party or damage to property by reason ot 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. Qualification 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 theoretical and practical examinations that are
appropriate for the operation of a motorcycle-for-hire. Only riders possessing such a
professional driver’s license shall be allowed to operate motorcycles-for-hire. The LTO shall
conduct a continuing safety training program 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.



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

Before a TNC or OEPP which utilizes motorcycles-for-hire in its business operations
is allowed to operate as such, it must comply with the accreditation requirements of the
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.

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

a) Proof of Filipino citizenship;

b) Proof of financial capacity’

c) SEC registration;

d) BIR Tax Identification Number;

©) 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 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 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 motorcycles-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, 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 operators, OEPPs or TNCs shall be in accordance with the fare structure and
within the parameters determined, prescribed and issued by the LTFRB, in consultation with
the motoreycle-for-hire industry and subject to the approval of the DOTr. ‘The fare structure
shall take into consideration the supply of and demand for motorcycle-for-hire services 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 cach 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 coverage 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 an emergency or road crash shall be part of the booking
application options of the digital platforms. When necessary, the TNC or OEPP shall
advance any amount necessary for the admission of such injured person or persons to a
hospital or medical facility up to the maximum insured amount.

SEC. 17. Enforcement ~ To ensure the safe and secure operation of motorcycle-for-
hire, the LTO shall deputize LGUs and other relevant government agencies to assists 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
Metropolitan Manila Development Authority (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 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 form 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 the other 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 driver 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 rules and regulations to be
issued pursuant to Sec. 21 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, 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, 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 - To ensure a smooth transition in the implementation
of this Act, the authority and accreditation granted to existing TNCs, OEPPs and operators
shall continue to be effective until their expiration or sis (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 LTFRB, LTO, DTI-BPS,
DICT, BIR, TESDA, Department of Health, Department of 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. Repealing Clause ~ All laws, presidential decrees, executive orders,
ordinances, rules and regulation, and other issuances or part thereof which are inconsistent
with this Act, are hereby repealed or modified accordingly.


SEC.24, Effectivity — This Act shall take effect after fifteen (15) days after its
publication in the Official Gazette of in newspapers of general circulation.

Approved,