Xl DATE December 6, 2022 Z
* TIME 1:25pm———*

BY i
\e

5
Wo inverS

Republic of the Philippines ~

House of Representatives
Quezon City, Metro Manila

Nineteenth Congress
First Regular Session

HOUSE BILL NO. 6525

Introduced by Representative BONIFACIO L. BOSITA

AN ACT
RECOGNIZING MOTORCYCLE AS A COMMON CARRIER,
REGULATING ITS OPERATION AND PROVIDING PROTECTION,
SECURITY, AND BENEFITS TO RIDERS

EXPLANATORY NOTE

This bill seeks to recognize motorcycle as a common carrier, regulate its
operation as public utility to ensure the safety of the commuting public and
provide an efficient alternative mode of public transport and provide protection,
security, and benefits to riders.

The transportation sector is among the sectors which have been adversely
atfected by the COVID-19 pandemic and government lockdowns. During the
pandemic and lockdown, it was observed that people have avoided mass
transportation, like trains and buses, and opted to use private vehicles or have
used car or motorcycle ride-sharing services. In fact, the demand for motorcycle
taxis significantly increased considering that it is the fastest and cheanest mode
of transportation for people who can’t afford to have a private vehicle, or even
if they can afford, are scared to drive one.

Presently, a technical working group composed of the Department of
Iransportation, Land transportation Office, Land Iransportation Franchising
and Regulatory Board, Metropolitan Manila Development Authority, Philippine
National Police and Inter-Agency Council for Traffic, has authorized the use of


motorcycle taxi which includes three players: Joyride, Angkas and Move It.
However, the supply of motorcycle taxis is not enough to hold the huge
demand. “Habal-habal” and other motorcycle ride-sharing services were
accepted nationwide especially in Davao City and the rest of Mindanao to fill in
the gap. These motorcycles-for-hire are not registered as such, and their
operations are considered illegal because motorcycle is not yet recognized as a
common carrier.

In the Lighteenth Congress, the House of Representatives has approved on
third and final reading House Bill No. 10571, entitled “An Act Regulating the
Operation of Motorcycles-For-Hire.”” Among the salient features of the said bill
include the recognition of motorcycles-for-hire as common carriers via
transportation network company (TNC) or online e-commerce platform
provider (OEPPs), sets the standards and specifications of motorcycles and
qualifications of drivers, allows franchising and setting of franchise
requirements, and sets the accreditation requirements of TNCs and OEPPs. The
proposed bill, however, remained pending in the Senate.

This representation believes that it is timely to legalize motorcycles as a
form of public transportation. Through this proposed measure, motorcycles
shall be recognized as common carriers. As common carriers, operators and
riders of motorcycles shall observe the required degree of diligence in
transporting passengers and goods, and the presumption of negligence in breach
of contract of carriage shall likewise be applicable. This also mandates the Land
Transportation Office to conduct a mandatory safety and road courtesy training
program to address road safety concerns.

In addition, this bill will ensure full protection to riders and provide them
with humane conditions of work. They shall be entitled to social security and
welfare benefits such as the Social Security System, Home Development
Mutual Fund and the Philippine Health Insurance Corporation upon
engagement.

Legalizing motorcycles for hire and regulating its operations will protect
both the operator or rider and the commuting public. This will also provide our
fellow Filipmos a decent livelihood as public utility motorcycles divers or
operators. Further, it will not only address safety and regulation purposes but
will also highlight motorcycles as a secure, viable and dependable mode of
transportation in the country.

It is high time for the government to listen to the overwhelming clamor of
the commuters to legalize the operations of motorcycles for hire and motorcycle
ride-hailing services and recognize the contributions of the riders to the Filipino


people and the economy by protecting them, caring for their general welfare,
and affording them the benefits and working conditions they justly deserve.

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

rT
BONIFACIO L. BOSITA


arRoOna

Republic of the Philippines ~

House of Representatives
Quezon City, Metro Manila

Nineteenth Congress
First Regular Session

HOUSE BILL NO. 6525

Introduced by Representative BONIFACIO L. BOSITA

AN ACT
RECOGNIZING MOTORCYCLE AS A COMMON CARRIER,
REGULATING ITS OPERATION AND PROVIDING PROTECTION,
SECURITY. AND BENEFITS TO RIDERS

Be it enacted by the Senate and the House of Representatives of the Philippines
in Congress assembled:

SECLION |. Short 1itle. — 1s Act shall be known as the “Public
Utility Motorcycles Act.”

SEC. 2. Declaration of Policy. —\t is the policy of the State to promote
safe, reliable, accessible and convenient mode of transportation for the riding
public. The State recognizes that motorcycles are used as an alternative mode
of public conveyance and commuters are patronizing the same due to necessity
and practicality. The State also guarantees protection to riders and ensure
humane conditions of work. To protect the general welfare of the riding public

and provide livelihood to motorcycle drivers, the State shall regulate the


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operation of motorcycle as an alternative mode of public conveyance. The State
shall also provide a regulatory framework that guarantees full protection to
riders in digital platform work arrangements.

SEC. 3. Definition of Terms. — As used in this Act:

a) Multi-homing refers to an approach that allows operator of public utility
motorcycle to provide transport services through the use of more than one
transport network company;

b) Operator refers to the person in whose name the public utility
motorcycle is registered;

c) Public utility motorcycle reters to a duly registered motorcycle
authorized to carry passengers or deliver goods for a fee and offer its services to
the public;

d) Rider refers to the driver of the public utility motorcycle; and

e) 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 public utility motorcycle.

SEC. 4. Scope and Application. — This Act shall apply to motorcycles
operating as common carriers and exclude motorcycles that are used exclusively
in the line of business of natural or juridical person.

SEC. 5. Motorcycle as Common Carrier. — Motorcycle is hereby

recognized as a common carrier and its operation as a public utility motorcycle


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is governed by the provisions of Republic Act (RA) No. 386, otherwise known
as the “Civil Code of the Philippines,” and other pertinent laws, rules and
regulations on common carriers, particularly on the duty to observe
extraordinary diligence and the disputable presumption of negligence in case of
death or injury of passenger or loss or destruction of goods.

Transportation network company (TNC) shall exercise due diligence and
reasonable care in the accreditation of public utility motorcycle operators and
riders.

SEC. 6. Registration. — A public utility motorcycle must be duly
registered with the Land ‘lransportation Office (LO) in accordance with the
requirements provided under Section 7 of this Act. The LTO shall ensure that
motorcycles applied for registration or renewal as public utility motorcycles are
roadworthy.

SEC. 7. Standards and Specifications. — The Department of
‘Transportation (DO'I'r) shall, upon the recommendation of the Department of
Trade and Industry — Bureau of Philippine Standards (DTI-BPS) and LTO,
prescribe the standards and specifications of public utility motorcycles,
including its accessories, taking into consideration the safety of the riders and
passengers.

Any modification on public utility motorcycle is not allowed. However,

the LTO may approve the installation of appropriate accessories such as


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motorcycle bracket, top box, luggage carrier, saddlebag, step board or footrest,
and speed limiter or monitoring devices.

SEC. 8. Franchise. — The franchising of public*utility motorcycles in
metropolitan and urbanized areas with an existing and operating TNC is vested
in the Land ‘l'ransportation Franchising and Regulatory Board (LFRB). The
LTFRB shall specify the terms and conditions of the franchise, including the
right of the operator to engage in multi-homing operation.

The LTFRB shall, in coordination with the concerned local government
unit (LGU), determine the number of units and areas of operation, or routes if
applicable, of public utility motorcycles in accordance with the route
rationalization plan or studies adopted by the DOTr: Provided, That in issuing
the franchise, the LTFRB shall also determine the number of public utility
motorcycle units that may operate under TNCs based on travel or delivery
demands of the public.

‘The franchise fee and any other related charges for operating a public
utility motorcycle shall be determined by the LTFRB, subject to the approval of
the DOTr.

In areas where there is no existing or operating TNC, the LGU shall issue
the franchise of public utility motorcycle: Provided, That a public utility
motorcycle may only operate within the territorial jurisdiction of the LGU that

issued the franchise: Provided further, That the LGUs may determine the


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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.

SEC. 9. Requirements of Franchise. — A franchise or certificate of public
convenience may 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 for public utility motorcycles under
the digital platform or business permit issued by the relevant city or
municipality for public utility motorcycles not operating under a TNC;

c) Certificate 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 public utility motorcycles;

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 of or on the
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 Riders. — Vhe LO 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


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examinations that are appropriate for the operation of a public utility motorcycle
and the necessary trainings. Only riders possessing such professional driver's
license shall be allowed to operate public utility motorcycles.

SEC. 11. Mandatory Safety and Road Courtesy Training Program. —
‘The LYO shall conduct a mandatory continuing safety and road courtesy
training program for the riders of public utility motorcycles. The Technical
Education and Skills Development Authority (TESDA) shall approve and
revise, if necessary, the curriculum of such training program.

The riders shall attend at least one (1) safety and road courtesy training
seminar every year. Failure to attend such seminar is a ground for the
revocation of the professional license of the rider.

SEC. 12. Mandatory Use of Motorcycle Helmet. — All motorcycle riders,
including back riders, shall at all times wear standard protective motorcycle
helmets pursuant to RA 10054, otherwise known as the “Motorcycle Helmet Act
of 2009.” Kor purposes of this Act, all passengers shall use personal protective
motorcycle helmet while riding in any public utility motorcycle. A passenger
who does not own a personal protective motorcycle helmet is not allowed to
ride a public utility motorcycle.

SEC. 13. Rights of Riders, — The riders are entitled to the following:

a. Written contract or agreement from the operator or I! NC;

b. Just compensation for services without manipulation or distinction of

any kind;


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c. Safe, healthy and humane working conditions;

d. Free exercise of right to self-organization and collective negotiation
with the government, operator or TNC, and other entities for the promotion of
their welfare and in the advancement of their rights and interests; and

e. Social protection and social welfare benetits, subject to an equitable
arrangement with the operator or TNC;

SEC. 14. Standards of Service. — The Department of Labor and
Employment shall formulate the necessary guidelines to ensure the following:

a. Compliance and observance of the terms and conditions of the contract
or agreement between the rider and the operator or ‘INC which shall contain the
following:

1. Itemization of services or output to be provided by the rider;

2. Compensation or any other conditions for the said compensation or fee
to be due;

3. Name and registered address of the rider, operator or 1 NC; and

4. Other terms and conditions that govern the performance of the mutual
obligations of the parties that are not contrary to law, morals, good customs,
public order or public policy.

b. Maintenance of registry of riders, operators or TNCs;

c. Free exercise of rider’s right to self-organization and collective

negotiation with the government, operator or TNC, and other entities for the


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promotion of their rights and welfare, and to their representation and
participation in policy and decision-making process; and

d. Uphold programs and policies of non-discrimination, absence of
violence, anti-sexual harassment and anti-abuse in service arrangements.

SEC. 15. Social Security and Welfare Benefits. — Riders shall be covered
by the Social Security System, Home Development Mutual Fund (Paglbig
Fund) and the Philippine Health Insurance Corporation upon engagement. The
payment of monthly contributions shall be equitably shared by the rider and the
operator or TNC.

SEC. 16. Accreditation Requirements of TNCs. — \NCs that utilize
public utility motorcycles in its business operations must be duly registered with
the Securities and Exchange Commission (SEC) or DTI, if applicable, and 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 for the operations of ‘'NCs using public utility
motorcycles.

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

a) Proof of Filipino citizenship;

b) Proof of financial capacity;

c) SEC or DTI registration;

d) BIR tax identification number;


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e) Accident quick response system; and

f) Training center, duly certified by the LTO and TESDA.

The DICT may, as a requirement for renewal of‘ accreditation, consider
the safety record of the TNC.

SEC. 17. Operation. — Public utility motorcycles may operate using
digital booking platforms or designated terminals. Public utility motorcycles
may adopt a multi-homing approach within a particular area of operation under
the given franchise or certificate of public convenience: Provided, That a public
utility motorcycle accredited under any TNC platform may not be allowed to
operate as public utility motorcycle without using such platform.

The LTFRB shall determine the capacity, nature and character of goods
that may be transported and the dimensions of the motorcycle bracket or
luggage carrier of public utility motorcycles.

Public utility motorcycles shall operate at speeds allowable under RA No.
4136, otherwise known as the “Land Jransportation and traffic Code,” \ocal
ordinances and other applicable laws, rules and regulations: Provided, That in
no case shall a public utility motorcycle operate beyond sixty kilometers per
hour (60kph).

SEC. 18. Fare Setting. - The LTFRB shall, in consultation with the
public utility motorcycle industry and subject to the approval of DO'Ir,
determine the fare structure and prescribe the fares, surcharges and other

transportation fees that may be charged by operators or TNCs. The fare


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structure shall take into consideration the supply of and demand for public
utility motorcycle services and allow dynamic pricing on account of market
variations based on location and time. The fare structure shall also include the
maximum percentage that may be charged by the TNCs 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 shall feature a mechanism that enables clients to
compare the transportation cost charged by each of the available digital
platforms.

The LTFRB shall, after public consultation with LGUs, operators and
other stakeholders, and with the approval of the DOTr, determine the fare
structure of public utility motorcycle operating outside the digital platforms.

SEC. 19. Processing of Personal Information. — Any collection,
processing and storage of personal information and sensitive personal
information involved in the registration of public utility motorcycles, digital
bookings and other requirements under this Act shall adhere with the provisions
of RA No. 10173, otherwise known as the “Data Privacy Act of 2012.”

SEC. 20. Liabilities. — The operator and the TNC providing the digital
platform are jointly and solidarily liable in case of death of or injury to
passenger or damage or loss of property in the course of operating a public

utility motorcycle, with rights of subrogation against any party at fault:

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Provided, That the liability of the TNC shall not exceed the amount of the
insurance coverage of the operator.

SEC. 21. Quick Response Team. — Each TNC shall establish a quick
response team to provide immediate medical care or bring any person injured by
the operation of public utility motorcycle booked through its digital platform to
the nearest hospital or medical facility. The booking application options of the
digital platforms shall include a function that allows the rider or passenger to
alert the quick response team during emergency or road crash. The TNC shall
advance the amount necessary, but not more than the maximum amount covered
by the insurance, for the admission of such injured person to a hospital or
medical facility.

SEC. 22. Travel Demand and Operational Data. — Within thirty (30)
days after the end of every year, the TNCs shall submit their travel demand and
operational data report to the DOTr. The DOTr may prescribe the format of
such report and require the submission of other information that may be used
for transportation and planning management.

SEC. 23. Enforcement. — To ensure the safe and secure operation of
public utility motorcycle, the LTO shall deputize LGUs and other relevant
government agencies to assist in the enforcement of traffic rules and regulations
and monitor strict compliance with the provisions of this Act, particularly on the

observance of carrying capacity and speed limits.


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The LTO shall establish a centralized database for purposes of recording
the violations and road crashes involving public utility motorcycles and
applying the penalties and other sanctions under this Act. The LTO shall also
publish quarterly and annual reports of such data on its website and other
platforms that the public may access.

The LTO enforcement officers, deputized LGU enforcers and MMDA
personnel shall endorse all violations related to the terms and conditions of a
franchise to the LTFRB for appropriate action.

SEC. 24. Applicable Penalties. The erring TNCs, operators and riders
shall be penalized as follows:

a) Any rider who operates a public utility motorcycle that violates traffic
rules and regulations, carrying capacity and licensing requirement, including
allowing a back rider to ride a public utility motorcycle without the protective
helmet pursuant to Section 12 of this Act shall suffer the maximum penalty
provided under applicable laws, ordinances, rules or regulations for such
violation. In addition, the LTO shall impose a penalty of suspension or
revocation of the professional driver’s license of an erring rider commensurate
to the gravity of the offense and frequency of commission;

b) Any operator who allows a rider who does not possess a valid
professional driver’s license to operate a public utility motorcycle shall, in
addition to penalties provided under existing laws, rules and regulations, suffer

a penalty of suspension or revocation of franchise, after due notice and hearing.

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c) The penalties provided under RA No. 7394, otherwise known as the
“Consumer Act of the Philippines” and RA No. 10173, when applicable, shall
apply for acts or omissions committed in the course of public utility motorcycle
operation.

‘The ‘'NCs may also suspend or blacklist the riders or operators and
impose other sanctions on account of violation of internal rules made known to
them, acts detrimental to safety and security and other reasonable grounds.

SEC. 25. Transitory Provision. — The authority and accreditation granted
to existing TNCs, operators and riders using motorcycles shall continue to be
effective until their expiration or six (6) months from the promulgation of the
rules and regulations of this Act, whichever comes later.

SEC. 26. Implementing Rules and Regulations. — Within ninety (90)
days from the effectivity of this Act, the Secretary of Transportation shall, in
coordination with the Chairperson of LTFRB, Assistant Secretary of LTO,
Director of Bureau of Philippine Standards of the DT, Secretary of Information
and Communications Technology, Commissioner of Internal Revenue, Director
General of TESDA, Secretaries of Health and the Interior and Local
Government, Chairperson of the Metropolitan Manila Development Authority
and Director of Philippine National Police — Highway Patrol Group, issue the

necessary rules and regulations for the effective implementation of this Act.


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SEC. 27. Separability Clause. — lf any provision or part of this Act is
declared invalid or unconstitutional, the remaining parts or provisions not
affected shall remain in force and effect. .

SEC. 28. Repealing Clause. — The pertinent provisions on motorcycles
under RA 4136 that are inconsistent with the provisions of this Act are repealed
or modified accordingly. All laws, executive orders, issuances, rules and
regulations, or parts thereof inconsistent with the provisions of this Act are
repealed or modified accordingly.

SEC. 29. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,