Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

331

HOUSE BILL NO.

Introduced by: Rep. RACHEL MARGUERITE “CUTIE” DEL MAR

EXPLANATORY NOTE

The attached Bill seeks to regulate the operation of motorcycle-for-hire.
Said bill is the complete version of what was approved by the House last 19
Congress which was transmitted to the Senate. Joint Committee
meetings/hearings were conducted and a Technical Working Group was
formed to refine the measure but due to lack of material time, it was not
ratified by the 19" Congress .

As a backgrounder, during the last 18" Congress, my father, the late
Representative Raul V. Del Mar filed HB No. 13, entitled “An Act Allowing and
Regulating the Use of Motorcycles as Public Utility Vehicles, Amending for the
Purpose Republic Act No. 4136, Otherwise Known As the Land Transportation
and Traffic Code, and for other Purposes”, the same was referred to the
Committee on Transportation. However, during the deliberation of said HB No.
13, there are other bills of similar nature prompting the Committee on
Transportation to consolidate all the proposed measures relating to the
regulation of motorcycles-for-hire. Thereafter, the Committee came up with the
consolidated version which is HB No. 10571. Said HB No. 10571 was passed
on third reading in the House of Representatives and was transmitted to the
Senate for its consideration. Unfortunately, due to lack of material time, the
Senate was not able to consider the said HB No. 10571


This representation reiterates herein below the justification stated in the
original HB No. 13 authored by my late father, Rep. Raul V. Del Mar:

Thus, it is of common knowledge that in cities, municipalities and
barangays in the country, there is a proliferation of motorcycles-for-hire known
as habal-habal or angkas. Habal-habal or angkas has been considered as the
most convenient and cheapest means of transportation of the residents therein
for lack of other means of transportation. Despite the benefits that
motorcycles-for-hire provide, it cannot be denied that their non-regulation
Poses danger and risks to the safety and welfare of the riding public. The
absence of any law regulating the operation of motorcycles-for-hire or habal
habal or angkas runs counter to the policy of the State to ensure the safety
and welfare of the public.

The amendment of Section 7 (c) of Republic Act No. 4136 - Land
Transportation and Traffic Code will resolve the existing inadequacies in our
laws and shall promote the safety and welfare of people who patronage
motorcycles-for-hire known as habal-habal or angkas. Any two-wheeled motor
vehicle known as motorcyles-for-hire may be registered with the Land
Transportation Office (LTO) as for hire and may be used as a commercial
vehicle to transport passengers and goods. Application for registration under
this classification shall be accompanied by certificate of public convenience or
a special permit issued by the Land Transportation Franchising and Regulatory
Board (LTFRB). This will ensure that operators and drivers will be held
responsible for the negligent operation of their motorcycles. The same will
likewise prevent abuse from owners, operators and drivers, thus ensuring low-
cost transportation.

Approval of this bill is earnestly sought.

RACHEL unphochire Oh be oe MAR


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

331

HOUSE BILL NO.

Introduced by Rep. RACHEL MARGUERITE “CUTIE” DEL MAR

AN ACT REGULATING THE OPERATION OF MOTORCYCLES-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. Short 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 an 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 motorcycles-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

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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;

) Motorcycle-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;

d) 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 motorcycle-for-hire to more than one digital platform providers
in delivering transport services;

f) 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 motorcycle-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 regulations of
this Act, containing goods 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; and

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 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.

MTPPs and OEPPs should exercise extraordinary diligence in the
accreditation and supervision of motorcycle-for-hire operators and riders
operating 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
motorcycles-for-hire before their registration, or any renewal thereof.

SEC. 7. Standards and Specifications of Motorcycles-For-Hire. — The
Department of Transportation (DOT), upon the recommendation of the
Department of Trade and Industry (DTI), Department of Environment and
Natural Resources (DENR), 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 motorcycles-for-hire, taking into consideration the
safety of the passengers and riders and the protection of goods.

No modifications 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 its 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) Motorcycles-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 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.

(b) Motorcycles-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.

¢) Motorcycles-for-Hire Operating Under an OEPP. - Motorcycles-for-
Hire operating under an 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 any 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

€) Tax Identification Number or 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.

SEC. 10. Qualifications of Motorcycles-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 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 conducted by the
LTO.

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

A MTPP or OEPP, as far as the operation of motorcycles-for-hire is
concerned, before being allowed to operate as such, must comply with the
accreditation requirement of LTFRB. The DTI, LTFRB 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) An established Road Crash Quick Response System; and

e) Capacity to evaluate and determine the competence of riders
through an established training center, duly certified by the LTO and
Technical Education and Skills Deveoplemtn Authority (TESDA). 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 digital booking platforms, or on designated areas
of operation. To maximize its 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 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 motorcycle-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.

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 operate at speeds allowable under Republic
Act 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 motorcycle-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 the case of motorcycles-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 Date. - Any processing, 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 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/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 or OEPPs shall be responsible for the insurance coverage of all
its accredited riders. The MTPP or OEPP shall likewise be responsible 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 motorcycles-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 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 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 shall 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 Republic Act 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 functions 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 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 Republic Act No. 7394, otherwise known as
the “Consumer Act of the Philippines” and 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 motorcycle-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 end 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, DICT, BIR, TESDA, Department of Health, Department of
the 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 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 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,

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