Republic of the Philippines 2 O7AUG 2013 §
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 2322

Introduced By: REPRESENTATIVE HENRY S. OAMINAL

EXPLANATORY NOTE

Severe lack of transportation facilities, particularly in distant areas, has compelled
people to devise alternative modes of transportation that is practicable to own and operate
with low maintenance costs. The use of motorcycles to transport passengers and small cargo,
commonly called habal-habal, has already gained popular acceptance in numerous regions.

However, these motorcycles are not registered vehicles-for-hire and their operation,
although accepted by the traveling public, is considered illegal under our laws.’ Further,
passengers hurt or injured via this mode of transportation cannot claim benefits or
reimbursements because this industry is not covered by insurance. Present-day operators and
drivers face a real threat to their livelihood as they remain vulnerable to harassment and
mulcting by unscrupulous traffic enforcers.

Thus, there is a need to harmonize existing laws with the economic reality of modern
‘times and the day-to-day transportation requirements of the public specifically in remote areas.

This bill therefore seeks to regulate the operation of habal-habal and to authorize the
municipalities and cities to grant franchises for their operation in their respective area of
jurisdiction. The paramount objective is to ensure the safety of the traveling public while
maintaining a functional yet low-cost means of transport with minimal financial disruption.

In view of the foregoing reasons, the approval of

Representative
2™ District, Misamis Occidental

* Republic Act No. 4136 (June 20, 1964).


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

SIXTEENTH CONGRESS
First Regular Session

HOUSE BILLNo,__ 232.2

Introduced By: REPRESENTATIVE HENRY S. OAMINAL

AN ACT
REGULATING THE OPERATION OF MOTORCYCLE-FOR-HIRE OR HABAL-HABAL AND
AUTHORIZING THE MUNICIPALITIES AND CITIES TO GRANT FRANCHISES FOR THEIR
OPERATION, AMENDING FOR THE PURPOSE SECTIONS 447 AND 458 OF REPUBLIC ACT No.
7160, AS AMENDED, OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE OF 1991.

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

SECTION 1. Definition. - For purposes of this Act, “habal-haba?” shall mean any two-
wheeled motorcycle-for-hire, customized and designed to carry persons, goods and other small
cargo for a fee as a common carrier, found to be operating the inner-most parts of some rural
areas and mountainous barangays where jeepneys, tricycles, and other forms of public
transportations cannot pass through.

SECTION 2. Item (vi), Sub-paragraph (a) (3),Section 447of Republic Act No. 7160, as
amended, otherwise known as the Local Government Code of 1991 is hereby amended to read
as follows:

“SECTION 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,
and shall:

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

XXX XXX XXX


(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 of the
inhabitants of the municipality, and pursuant to this legislative authority
shall:

XXX XXX XXX

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

SECTION 3.ltem (vi), Sub-paragraph (a) (3), Section 458 of Republic Act No. 7160, as
amended, otherwise known as the Local Government Code of 1991 is hereby amended to read
as follows:

“SECTION 458, Powers, Duties, Functions and Compensation. ~ (a)
The sangguniang panlungsod, as the legislative body of the city, shall
enact ordinances, approve resolutions and appropriate funds for the
general welfare of the city and its inhabitants pursuant to Section 16 of
this Code and in the proper exercise of the corporate powers of the city
as provided for under Section 22 of this Code, and shall:

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

XXX XXX XXX

(3) Subject to the provisions of Book Il of this Code, enact ordinances
granting franchises and authorizing the issuance of permits or licenses,
upon such conditions and for such purposes intended to promote the
general welfare of the inhabitants of the city and pursuant to this
legislative authority shall:

XXX XXX XXX
(vi) Subject to the guidelines prescribed by the Department of

Transportation and Communications, regulate the operation of
MOTORCYCLES-FOR-HIRE OR HABAL-HABAL AND tricycles and


grant franchises for the operation thereof within the territorial
jurisdiction of the city; and”

SECTION 4. Inspection of Units and Routes. ~The Local Government Unit (LGU)
concemed shall conduct an account of all units actually existing and operating therein as well as
a comprehensive inspection of the routes traditionally used by the motoreycles-for-hire or
habal-habal.

SECTION 5. Registration. — All owners and/or operators of motorcycles-for-hire or
habal-habal shall apply for registration with the LGU where they reside, subject to the
guidelines prescribed by the Department of Transportation and Communications (DOTC). The
LGU shall conduct an exhaustive physical examination of all motorcycles-for-hire or habal-habal
to be registered, in order to determine the safety and fitness of each unit to operate as a public
vehicle.

SECTION 6. Insurance Coverage Requirement. — To ensure the safety of the public, the
motorcycle owner shall be required to obtain insurance coverage for third party liability prior to
application of the franchise to operate a motorcycle-for-hire or habal-habal.

SECTION 7. Documents Required. - Any person applying for the franchise to operate a
motorcycle-for-hire shall submit the following:

a. Certification from the Punong Barangay that the applicant is a bonafide resident

of the barangay within the city or municipality;

Official Receipt and Certificate of Registration for the motorcycle unit;

Insurance coverage for third party liability; and

d. An undertaking by the owner and/or operator that the unit applied for will be
operated only within the said city or municipality.

°F

SECTION 8. Franchise Issuance and Limitations. - The application, after a careful and
thorough evaluation by the LGU, shall be endorsed to the sangguniang bayan or sanggunieng
panlungsod for the issuance of the franchise to operate the motorcycles-for-hire or habal-habal
duly registered. The franchise shall be limited or confined to the city or municipality concerned
and shall specify the authorized route, the number of allowable passengers, the maximum
cargo weight limit, and the legal fares to be charged.

This does not preclude LGUs from entering into separate agreements allowing the
motorcycles-for-hire or habal-habal to traverse and operate within their respective
jurisdictions, even beyond the normal authorized routes, should there be no other available
mode of transportation between said LGUs.

SECTION 9. issuance of Plate. - The Land Transportation Office (LTO) shalll issue the new
“for-hire” plate upon the surrender of any previously issued plate, as the case may be, and
upon the receipt of the franchise to operate duly issued by the city or municipality.


SECTION 10. Prohibitions. - The motorcycle-for-hire or habal-habal shall be prohibited
from operating along national highways or other roads allowing for a maximum speed greater
than forty (40) kilometers per hour, in particular high-speed well paved roads, except to cross
the same. However, they may be allowed to operate along these said highways or roads if
special lanes are available to accommodate the use and operation of these motorcycles-for-hire
or habal-habal. In such cases, they shall be strictly limited to these special lanes.

SECTION 11. Implementing Rules and Regulations. — The Department of Transportation
and Communications (DOTC) and the Leagues of Cities and Municipalities shall, within sixty (60)
days after the effectivity of this Act, issue the necessary rules and regulations to implement the
provisions of this Act.

SECTION 12. Separability Clause. — \f any section or provision of this Act shall be
declared invalid, other provisions not affected thereby shall remain in full force and effect.

SECTION 13. Repealing Clause. ~ All laws, decrees, executive orders, rules and
regulations inconsistent with this Act are hereby amended, repealed or modified accordingly.

SECTION 14. Effectivity Clause. — This Act shall take effect fifteen (15) days after its
publication in any newspaper of general circulation.

Approved,