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Republic of the Philippines f > RECEIVED
HOUSE OF REPRESENTATIVES

Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No.3150

Introduced by HON. LINABELLE RUTH R. VILLARICA
4 DISTRICT, BULACAN

AN ACT
AMENDING R.A No. 4136, OTHERWISE KNOWN AS THE LAND TRANSPORTATION
AND TRAFFIC CODE BY AUTHORIZING AND REGULATING THE USE OF
MOTORCYCLES FOR HIRE, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

For the protection of operators and passengers, motorcycles-for-hire service must be
authorized and regulated as a legitimate livelihood and recognized mode of public
transportation. Individuals and unaccredited transportation groups continue to utilize
motorcycles for this purpose. In the provinces, motorcycles-for-hire have been long used, even
becoming a primary mode of public transportation. The transport network vehicle service
(TNVS) companies provided for a motorcycle-for-hire sharing scheme in urban areas. The
deteriorating traffic situation in major thoroughfares compels commuters to use motorcycle
ride-hailing apps as a practical option to reach their destinations on time.

Presently, however, while motorcycles-for-hire are apparently widely used, R.A. No
4136 or the Land Transportation and Traffic Code allows the registration of motorcycles for
either private or government use.

This proposed bill seeks to provide safe, sufficient, and economical mode of public
transport by allowing and regulating the use of motorcycles as public utility vehicles. It also
seeks to establish mechanisms and guidelines in regulating all the operational aspects of
motoreycles-for-hire.

This bill is an iteration of H.B. No. 10424 which was approved on Third Reading by
the House of Representatives during the 19" Congress. The same was transmitted to the Senate
and it was referred to the Committe on Public Service but no further other action was taken.

Support for the enactment of this measure is earnestly requested.

Ati Marne

REP. LINABELLE RUTH R. VILLARICA

I= pare 95 AUG 2m


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No3 150

Introduced by HON. LINABELLE RUTH R. VILLARICA
4 DISTRICT, BULACAN

AN ACT
REGULATING THE OPERATION OF MOTORCYLES-FOR-HIRE AND PROVIDING
PENALTIES FOR VIOLATION THEREOF

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

SECTION 1. Title. — This Act shall be known as the “Motorcycles-for-hire Act”.

SEC. 2. Declaration of policy. - The State recognizes the importance of transportation
in economic development. The recent innovations in technology has opened an opportunity for
other 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
additional mode of public transportation, which is sufficient, safe, secure and economical.

To this end, the State shall establish mechanisms and guidelines in regulating all the
operational aspects of motorcyles-for-hire.

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

(a) Digital platform refers to information and communications technology-enabled
mechanism that connects and integrate producers and users in online environments where
goods and services are requested, developed, and sold, and data is generated and exchanged;

(b) Motorcycle refers to any two (2)-wheeled motor vehicle without appendages:

(©)  Motoreycle-for-hire refers to a motorcycle, duly registered as such under this
Act, and used to carry passengers or goods on a for hire basis, offering its services to the public.
A motorcycle-for-hire shall be considered a public utility vehicle and its operation a public
utility:


(4) Motorcycle taxi platform provider (MTPP) refers to an entity which provides
pre-arranged transportation services for compensation using a digital platform to connect
clients with riders to facilitate a contract of carriage of persons using a motorcycle-for-hire;

(@) _ Multi-homing refers to an approach where an operator may accredit a particular
motoreycle-for-hire to more than one digital platform providers in delivering transport services;

(Online E-commerce platform provider (OEPP) refers to an entity which
provides pre-arranged transportation services for compensation using a digital platform to
connect clients with transport services to facilitate a contract of carriage of goods, including
carriage of goods over goods sold on said digital platform;

(g) Operator refers to the person in whose name the motorcycles-for-hire is
registered:

(h) Parcel means a package or rectangular box, the dimension and weight of which
is as specified in the implementing rules and regulation of this Act, containing good or some
form of transportable property intended for delivery to an addressee prominently displayed on
at least one (1) of its sides; and

(i) Rider refers to the driver of the 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 goods. For this
purpose, goods shall include parcels and mail. This Act shall not apply to motorcycles directly
owned by entities and used exclusively 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 Philippine and other pertinent laws, rules and regulation 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 cases of breach
of a contract of carriage.

MTPPs and OEPPs should exercise extraordinary diligence in the accreditation and
supervision of motorcycles-for-hire operators and riders operating under their platforms.

SEC. 6. Registration of Motoreycles-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 motorcycles-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
(DTI), Department of Environment and Natural Resources, LTO and Land Transportation


Franchising and Regulatory Board (LTFRB), shall prescribe in the implementing rules and
regulations the standards and specifications of motorcycles that may be allowed to operate as
motoreycles-for-hire, taking into consideration the safety of the passengers and riders and the
protection of goods.

No modification shall be made on any motorcycles-for-hire, except for the installation
of the appropriate accessories, such as motorcycle bracket, top box, luggage carrier, saddlebag,
step board or foot rest, crash guards, speed limiter or monitoring devices, in accordance with
the standards approved by the DTI, if applicable, and shall be used as reference by the LTO for
registration purposes. In case the DTI has no approved standards, the LTO, upon consultation
and agreement with all stakeholders, shall prescribe the same, taking into consideration road
worthiness and road safety, until such time the DTI has issued appropriate standards.

Within five (5) years upon the enactment of this Act, the DTI shall ensure the
availability of standards of all products and parts covered by this Act and its implementing
rules and regulations, and it future amendments or revisions.

SEC. 8. Authority to Grant Franchise to Operate Motorcycles-For-Hire. — The
franchising or grant of authority to operate motorcycles-for-hire shall be as follows:

(a) Motoreycles-for-Hire Under MTPPs. — In areas with an existing and operating
MTPPs, the authority and regulation of the operation of motorcycles-for-hire is vested in the
LTFRB through a franchise or certificate of public convenience (CPC). The LTFRB shall set
forth in the franchise the terms and conditions to be observed in the operation of motorcycles-
for-hire. In determining the number of franchises to be issued, the LTFRB shall take into
consideration the Local Public Transport Route Plan (LPTRP) or studies approved by the DOTr
and their impact on the other modes of public transportation. The franchise fee shall be
determined by the LTFRB after public consultation and shall only be implemented upon the
approval of the DOTr.

(>) Motoreycles-for-Hire in Areas Without an Operating MTPP or OEPP. - The
authority and regulation of operation of motorcycles-for-hire in areas without an operating
MTPP or OEPP is vested in the LTFRB. The number of routes or motorcycles-for-hire that
may be allowed to operate shall be determined in accordance with the LPTRP as recommended
by the local government unit (LGU) concerned.

The LTFRB shall provide a uniform guidelines as to the standards of operation of
motorcycles-for-hire in consultation with the LGUs and stakeholders.

(©) Motoreyeles-for-Hire Operating Under a OEPP. ~ Motorcycles-for-Hire
operating under OEPP shall be regulated by the LTFRB in accordance with its mandate to issue
CPC, subject to compliance with the requirements provided under the applicable provisions of
this Act.

SEC. 9. Requirements for the Grant of a Franchise or Certificate of Public
Convenience. - A CPC shall only be issued to an operator upon submission or determination
of the presence of the following requirements:

(a) Proof of Filipino citizenship;


(b) Financial capacity the standard of which to be determined by the LTFRB;

(c) Certificate of Registration duly issued by the LTO:

(d) Insurance coverage for the death of or injuries suffered by the rider, passenger
or any third party or damage to property by reason or on occasion of its operation; and

(ec) Tax Identification Number of Certificate of Registration as Common Carrier
issued by the Bureau of Internal Revenue (BIR), if applicable.

No operator shall operate more than one (1) franchise nor operate more than one (1)
motorcycle-for-hire in a franchise.

C. 10 Qualifications of Motoreycles-For-Hire Riders. ~ The LTO shail promulgate
the necessary guidelines setting forth the requirements for the issuance of a professional
driver's license, including the content of or the conduct of theoretical and practical
examinations, appropriate for the operation of a motorcycle-for-hire. Only riders possessing
professional driver's license shall be allowed to operate motorcycles-for-hire. The MTPPs and
OEPPs shall provide and conduct a continuing safety training seminar for riders operating
under their respective platforms: Provided, That for motorcycles-for-hire riders operating
outside the digital platform providers, the conduct of continuing safety training seminar shall
be conducted by the LTO.

SEC. 11. Accreditation of MTPPs. — A MTPP or OEPP must be duly registered with
the Securities and Exchange Commission (SEC).

AMTPP or OEPP, as far as the operation of motoreycles-for-hire is concerned, before
being allowed to operate as such, must comply with the accreditation requirement of the
LTERB. The DTI, LTERB and Department of Information and Communications Technology
(DICT) shall jointly issue the guidelines that shall govern the operations of MTPPs and OEPPs.

MTPPs and OEPPs must possess and maintain the following minimum requirements
for its accreditation:

(a) Financial capacity the standard of which to be determined in the joint
guidelines;

(b) SEC registration;
(c) BIR Tax Identification Number;
(d)__ Anestablished Road Crash Quick Response System; and

(e) Capability to evaluate and determine the competence of riders through an
established training center, duly certified by the LTO and Technical Education and Skills


Development (YESDA). The LTFRB may, as a requirement for renewal of accreditation,
consider the previous safety record of the MTPP as certified by the LTO during the effectivity
of its accreditation being applied for renewal.

SEC. 12. Operation of Motorcycles-For-Hire. ~ Motorcycles-for hire may be allowed
to operate using the digital platforms, or on designated areas of operation, To maximize their
operation, motorcycles-for-hire shall not be bound by a single MTPP or OEPP but shall be
allowed to adopt a multi-homing approach within a particular area of operation under the given
franchise, license or accreditation: Provided, That multi-homing operation shall be limited to
two (2) digital platforms but in no case shall a motorcycle-for-hire be allowed multi-homing
operation alternately between two (2) MTPPs or two (2) OEPPs: Provided, further, That a
motorcycle-for-hire accredited under any MTPP or OEPP platform may not be allowed to
operate as motorcycle-for-hire without using such platform.

Except for private use, any operation of motorcycles-for-hire in areas with operating
MTPP or OEPP outside the digital platform shall be considered colorum and, therefore, illegal.

For purposes of multi-homing operation of motorcycles-for-hire, the platform
providers may not refuse an application for accreditation solely on the ground that an operator
or rider is accredited to another platform provider.

A motorcycle-for-hire may be allowed to carry, alternately, both passengers or goods.

The maximum number of hours that a rider may operate a motorcycle-for-hire shall be
specified in the implementing rules and regulations of this Act.

Motorcycles-for-hire shall be specified in the implementing rules and regulations of
this Act.

Motoreycles-for-hire shall operate at speeds allowable under Republic Act (RA) No.
4136, otherwise known as the “Land Transportation and Traffic Code,” as amended, 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 and MTPPs under which they operate for motorcycles-for-hire
services 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
stakeholders. The fare structure shall take into consideration supply and demand components
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
MTPPs upon the operators or riders for a particular transaction. The LTFRB shall periodically
review the fare structure and parameters of determining the applicable fares. The booking
system of MTPPs shall feature a mechanism that enables clients to compare the transportation
cost charged by each of the available digital platforms.

In case of motorcycle-for-hire operating outside the digital platforms, the fare shall be
determined by the LTFRB, after a public consultation with LGUs, the operators and other
stakeholders.


SEC. 14. Processing of Personal Data. ~ Any proceeding, collection, use and/or storage
of personal information and sensitive personal information involved in the
registration/accreditation of motorcycles-for-hire, digital bookings, and other requirements
under this Act shall be made in accordance with the provisions of RA No. 10173, otherwise
known as the “Data Privacy Act of 2012.”

SEC. 15, Liabilities for Death, Injuries or Damage to Property. ~The operator and/or
the MTPP 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 MTPP or OEPP shall not exceed the amount of the insurance coverage of the
operator.

MTPPs and OEPPs shall be responsible for the insurance coverage of all its accredited
riders. The MTPP or OEPP shall likewise be responsible for the procurement of Personal
Passenger Accident Insurance for the protection of the passengers and/or goods, and, Third
Party Liability insurance to cover for damages caused to any third party in the course of
operation of motoreycles-for-hire.

SEC. 16. Road Crash Quick Response System. — Each MTPP 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 emergency or road crash shall be part of the booking app options of the digital
platforms. When necessary, the MTPP or OEPP shall advance any amount necessary for the
admission of such injured person or persons to the hospital or medical facility up to the insure
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 assist 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 shail establish a centralized database to ensure the accurate recording of violations
and road crashes involving motorcycles-for-hire 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 accessible to the public.

Consistent with its mandate under RA No. 7924, entitled “An Act Creating The
Metropolitan Manila Development Authority, Defining Its Powers And Function, Providing
Funds Therefor And Other Purposes,” the Metropolitan Manila Development Authority
(MMDA) shall continue to exercise its traffic enforcement function within Metro Manila in
furtherance of this Act.

All violations related to the terms and conditions of the 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 MTPPs or OEPPs from 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 to the latter, acts detrimental to safety and security and
other reasonable or valid grounds.

SEC. 18. Penalties. -

(a) Any rider 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 the 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 implementing rules and regulations 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 RA No. 7394, otherwise known as the “Consumer Act
of the Philippines,” RA No. 11967 or the “Internet Transactions Act of 2023,” and RA NO.
10173, when applicable, shall apply for acts or omissions committed in the course of
motorcycles-for-hire operation.

SEC. 19. Travel Demand and Operational Data. ~ To assist the DOTr in transportation
planning and management, the MTPPs and OEPPs shall, not later than thirty (30) calendar
days after the endo of every year, submit to the DOTr their travel demand and operational data.

SEC. 20 Transitory Provision. — In order to provide a smooth transition in the full
implementation of this Act, the authority and accreditation granted to existing MTPPs, OEPPs
and operators shall continue to be effective until their expiration or six (6) months from the
promulgation of the implementing rules and regulations 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, 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 the necessary rules and regulations to carry out the implementation of this Act.

SEC. 22. Separability Clause. ~If, for any reasons, 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 provisions of laws, decrees, executive orders,
presidential issuances, and other administrative rules and regulation, or parts thereof, which
are incompatible or inconsistent with the provisions of this Act are hereby repealed, amended
or modified accordingly.

SEC. 24. Effectivity. - This Act shall take effect fifteen (15) days after its publication
in the Official Gazette or in a newspaper of general circulation.


Approved,