Republic of the Philippines

HOUSE OF REPRESENTATIVES i 21MAR 2012 ‘

Quezon City, Metro Manila

FIFTEENTH (15"") CONGRESS Wipes

Second Regular Session “

6046

House Bill No.

Introduced by Hon. Pastor M. Alcover Jr.

EXPLANATORY NOTE

This Bill seeks to grant the Local Government Units in the rural areas the power to
regulate the operation of motorcycles-for-hire locally known as “habalhabal” amending for
the purpose Section 447 (a) (3) vi) of Republic Act No. 7160, otherwise known as “The Local
Government Code of 1991.”

It is of common knowledge that in the rural areas of the country, particularly in
remote places where the roads are not passable by four-wheeled vehicles, motorcycles-for-
hire or “habalhabal” has become the accepted mode of transportation. These motorcycles-
for-hire are two-wheeled vehicles which have been modified to accommodate more
passengers operated to render transportation services to the general public for a fee. This
mode of transportation has become a viable and very important alternative not only for
carrying passengers from remote and hardly accessible places, but also in bringing their
farm products to the markets.

While it may be true that this mode of transportation is not safe and illegal, there is
also the need to recognize and respect the people's initiative to solve their transportation
problem and compensate the Government's failure to provide them with decent roads
where they could safely transport their farm products to market places. To strike a happy
balance between these two conflicting issues, it is imperative that Local Government Units
are empowered to regulate the operations of motorcycles-for-hire or “habalhabat” to
protect both the operator and the riding public.

Therefore, in view of the foregoing, approval of this Bil

earnestly sought.

PASTOR M. ALCOYER JR.

(30 Pa —

sini


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

FIFTEENTH (15) CONGRESS
Second Regular Session

3046
6
House Bill No.__O

Introduced by Hon. Pastor M. Alcover Jr.

AN ACT

GRANTING THE LOCAL GOVERNMENT UNITS IN THE RURAL AREAS THE POWER TO
REGULATE THE OPERATION OF MOTORCYCLES-FOR-HIRE OR “HABALHABAL” WITHIN
THEIR TERRITORIAL JURISDICTIONS AMENDING FOR THE PURPOSE SECTION 447 (A) (3)
(VI) OF REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS “THE LOCAL GOVERNMENT CODE
OF 1991” AND FOR OTHER PURPOSES

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

SECTION 1. Title - This Act shall be known as “The Motorcycle-for-hire Regulation
Act of 2012.”

SEC. 2. Declaration of Policy — It is hereby declared the policy of the State to
recognize and respect the initiative of the people in the rural areas to solve their
transportation problems by operating motorcycles for hire or “habalhabal” with the end
view of instituting effective management thereof. Towards this end, Local Government
Units in the rural areas are hereby empowered to regulate the said mode of transportation
in the countryside.

SEC. 3. Applicability of this Act ~ The provisions of this Act shall apply only to Local
Government Units situated in the rural areas.

SEC. 4. Definition of Terms — for purposes of this Act, the following terms and
phrases shall mean as follows:

a) Local Government Unit ~ refers to a Municipality situated in the rural areas.
b) Motorcycle-for-Hire — refers to a two-wheeled motor vehicle which has been
modified to accommodate more passengers operated to render transportation

services to the general public for a fee.

¢) Operator ~ refers to the person, natural or juridical, granted with the operator's
permit.


d) Operator’s Permit ~ refers to the franchise document issued to a person, natural or
juridical, permitting such person to operate a motorcycle-for-hire within the
territorial jurisdiction of the issuing Local government Uni

SEC. 5. Application for Operator's Permit - The Local Government Units shall receive,
evaluate and process all applications for the grant of franchise to operate motorcycles-for-
hire within their territorial jurisdiction.

Any person applying for the grant of a Permit to operate a motorcycle-for-hire shall
submit and comply with the following requirements:

a) Only Filipino citizens, partnerships, cooperatives and corporations with sixty percent
(60%) Filipino equity are qualified to be motorcycle-for-hire operators;

b) Franchise to operate motorcycle-for hire is valid only for one motorcycle unit;

©) Proof of ownership of motorcycle-for-hire such as the Certificate of Registration and
Official Receipt from the Land Transportation Office, among others, must be
presented by the applicant and made an integral part of the supporting documents
for the Operator's Permit;

d) Operator's Permit shall be issued only to residents of the Local Government Unit
where the application is made: Provided that, priority shall be given to applicants
actually residing within the zone where he intends to operate the motorcycle-for-
hire unit. In case a question of residency arises, the applicant must submit any of
the follow’

1) Barangay Certification attesting that the applicant is a resident of the Barangay
within the Local Government Unit including the length of residency;

2) Voter’s Certification from the Commission on Elections (COMELEC);

3) Joint Affidavit of two disinterested persons who are residents of the Barangay
where the applicant is allegedly residing.

e) A deed of undertaking by the owner that the unit applied for will be operated only
within the territorial jurisdiction of the issuing Local Government Unit.

SEC. 7. Approval of the Application — After a favorable consideration of the
application, the same shall be indorsed to the Sangguniang Bayan or any Board or Agency
that the Local Government Unit may create which is delegated with the tasked to handle
the processing and issuance of Operator's Permit for motorcycle-for-hire within the
territorial jurisdiction of the said Local Government Unit. The Operator's Permit shall
indicate the route where the grantee is authorized to operate.

SEC. 8. Issuance of Plates or Stickers — Upon approval of the Operator's Permit, the
grantee shall receive the Operator's Permit together with a plate or sticker signifying that an


Operator's Permit has been duly issued for the operation of motorcycle-for-hire which shall
be conspicuously placed in any part of the vehicle.

SEC. 9. Limits of Operation - The authority granted to Local Government Units to
regulate motorcycles-for-hire under this Act shall be limited to, and confined within the
boundaries of its territorial jurisdictions.

The grantee of the franchise to operate motorcycles-for-hire shall be authorized to
operate on any road within the territorial jurisdiction of the Local Government Units that
issued its Operator's Permit and must carry not more than four passengers or loads not
exceeding three hundred kilograms (300kg) on its every trip.

In cases where travel between two Municipalities can only be done by motorcycle-
for-hire, in the absence of any other means of public transportation, the Municipalities
traversed by the motorcycle-for-hire shall agree between and among themselves through a
Memorandum of Agreement how incursions of motorcycle-for-hire belonging to another
ity shall be treated.

SEC. 10. Insurance Coverage — For the protection and safety of the passengers, the
‘owner or operator of the motorcycles-for-hire shall, upon registration, procure the
necessary insurance for third party liability.

‘SEC. 11. Establishment of Terminals — All Local government Units covered by the provisions
of this Act shall establish or designate a place to be used as terminal for motorcycles-for-
hire where they shall load or unload their passengers, goods, farm products or any cargo
that they are hired to transport.

SEC. 12, Amendment of Section 447 (a}(3)(vi) of R.A. No. 7160 ~ For purposes of this Act,
Section 447 (a)(3)(vi) of Republic Act No. 7160, otherwise known as “The Local Government
Code of 1991” is hereby amended to read as follows:

“Sec. 447. Powers, Duties, Functions and Compensation — (a) The sangguniang
bayan, as the legislative body of the municipality, shall enact ordinances, approve
resolutions and appropriate funds for the general welfare of the municipality and its
inhabitants pursuant to Section 16 of this Code and in the proper exercise of the
corporate powers of the municipality as provided for under Section 22 of this Code
shall:

(1) Approve ordinances and pass resolutions necessary for an efficient and
effective government, and in this connection shall:

XK KK XK 10K
(3) Subject to the provisions of Book II of this Code, grant franchises, enact

ordinances authorizing the issuance of permits or licenses, or enact ordinances
levying Taxes, fees and charges upon such conditions and for such purposes


intended to promote the general welfare for the inhabitants of the municipality, and
pursuant to this legislative authority shall:

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(vi) Subject to the guidelines prescribed by the Department of Transportation
and Communications, regulate the operation of MOTORCYCLES-FOR-HIRE AND
tricycles and grant franchises for the operation thereof within the territorial
jurisdiction of the municipality.

Xxx. XXX, XX 100K

SEC. 13. Penalty - The owner of motorcycle-for-hire who fails to register its
‘operation shall be penalized with a fine not less than three thousand pesos (Php 3,000.00)
but not more than five thousand pesos (Php 5,000.00) or an imprisonment of three (3)
months but not more than six (6) months or both at the discretion of the courts, and the
motorcycle-for-hire shall be impounded until registered.

SEC. 14. Repealing Clause — All laws, decrees, executive orders, letters of
instructions, rules and regulations or parts thereof which are inconsistent with this Act, are
hereby repealed, amended or modified accordingly.

SEC. 15. Effectivity Clause — This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in two (2) national newspapers of general circulation.

APPROVED