EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S. No
SENATE
7 5 9
o! lljc
Tf JUL24 P4 ^2
RECEi’ADTl':
Introduced by Senator Ralph G. Recto
AN ACT
ESTABLISHING CARPOOL SERVICE IN  THE COUNTRY, REGULATING ITS 
USE AND OPERATION, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Slow moving traffic is a bane to the productivity, well-being and development, 
not only of the individual but of the entire country. A study commissioned by Uber in 
2017 entitled Unlocking Citie^ shows that a typical driver plying the streets of Manila 
has to endure an additional 132% travel time during peak hours, which could 
adversely affect commuter's health and psychosocial well-being in the long run. 
Another study made by Japan International Cooperation Agency1 2 in 2014 estimates 
that the traffic congestion plaguing Metro Manila costs the Philippine economy more 
than two billion pesos every day. Without intervention, the cost of severe traffic 
congestion on the people and the economy could balloon to more than five billion 
pesos a day by 2035.
The proposed measure seeks to thwart this looming crisis by utilizing a large, 
untapped resource found in every gridlocked roadway in the country -  empty 
passenger seats in single-occupancy vehicles. This bill intends to promote carpooling 
as an effective vehicle reduction scheme, as well as a straightforward way to 
economize fuel consumption, decrease overall carbon footprint, and even lessen 
traffic-induced stress. This bill is optimistic that through the promotion of carpool
1 The Boston Consulting Group. (2017). Unlocking Qties: The impact of Ride-sharing in Southeast Asia and beyond. Uber.
2 Japan International Cooperation Agency. (2014). Roadmap fo r Transport Infrastructure Development fo r Metro Manila and its
Surrounding Areas (Region I I I  and Region IV-A). ALMEC Corporation.


services especially in urban areas, the government can minimize the problem of traffic 
congestion in a manner that is simple, pragmatic, and at almost no cost to taxpayers.
To promote the use of carpool services, this bill establishes the legal framework 
for providing and accepting carpool services in the country. This bill classifies carpool 
vehicles as private carriers, thereby reducing the bureaucratic requirement to provide 
carpool services legally. The bill likewise allows the owners and/or drivers of carpool 
vehicles to receive monetary contributions to cover expenses incidental to carpool 
vehicle operation, such as fuel, oil, and lubricant expenses, toll fees, parking charges, 
and vehicle maintenance costs. Government agencies are also authorized under the 
bill to provide incentives to carpool owners and/or drivers, such as exemption from 
vehicle volume reduction programs and designation of dedicated carpool lanes, among 
others.
Moreover, this bill addresses key issues associated with commuting in carpool 
vehicles. To warrant the road worth! ness of carpool vehicles, this bill compels the 
owners to follow the recommended preventive maintenance schedule of the carpool 
vehicles. To guarantee the safety and security of carpool passengers, this bill requires 
clearances and other documents to ensure that carpool drivers can be identified and 
found, and comprehensive motor vehicle insurance to protect passengers against 
accidents and other fortuitous events. To ensure the safety of carpool drivers and the 
carpool vehicles, this bill limits the provision and acceptance of carpool services within 
carpool associations empowered to scrutinize and monitor its own members. Finally, 
to keep unscrupulous vehicle owners and drivers from exploiting the carpool services 
to operate illegal colorum vehicles, this bill imposes a registration requirement for 
carpool vehicles, a carpool trip limit of two trips per day, a carpool passenger limit of 
six per carpool vehicle, and a Gas Fund contribution limit to be defined by the 
Department of Transportation (DOTr).


Ultimately, this bill intends to achieve two purposes. First, this bill seeks to 
provide a safe, dependable, environmentally-sound and sustainable mode of 
transportation to the commuting public while decongesting traffic in Metro Manila and 
in other urban areas in the country. Second, the bill seeks to improve the well-being 
of the commuting public by reducing the level of carbon emissions from motor 
vehicles, cutting the duration and the number of transfers in commuting to and from 
work, and by diminishing the traffic-induced exposure to health risks.
In light of the foregoing, immediate passage of the bill is earnestly sought.


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S. No.
SENATE
7 5 9
of Ihf ikn rrtirf
■19 
JU L24 
P 4  '-43
Introduced by Senator Ralph G. Recto
RECEIVED i!f.
AN ACT
ESTABLISHING CARPOOL SERVICE IN  THE COUNTRY, REGULATING ITS 
USE AND OPERATION, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. Short Tide. -  This Act shall be known as the "Philippine Carpooi
2 
Service A c t"
3 
Sec. 2. Declaration o f Policy. -  It is hereby declared the policy of the State to
4 
promote a just and dynamic social order through policies that provide adequate social
5 
services, promote full employment, a rising standard of living, and an improved quality
6 
of life for all. Towards this end, the State shall develop mechanism to regulate the use
7 
of carpooi services not only as a safe, dependable, environmentally-sound and
8 
sustainable mode of transportation, but also as a means to improve the well-being of
9 
Filipino commuters and to decongest traffic in Metro Manila and in other urban areas
10 
in the country.
11 
Sec. 3. Definition o f Terms. -  For the purposes of this Act:
12 
a) 
Carpooi Service shall refer to voluntary arrangement between two (2) to
13 
seven (7) persons, including the driver of a particular vehicle, to make one-way or
14 
round-trip journey in a single vehicle;
15 
b) Carpooi Association shall refer to a duly-registered non-stock, non-profit
16 
organization created for the provision of carpooi services to its members;
17 
c) 
Carpooi Driver shaW refer to a duly-licensed operator of a motor vehicle that
18 
provides carpooi service in accordance with the provisions of this Act;


1 
d) Carpoo! Passenger shall refer to any bona fide member of a carpool
2 
association who accepts carpool service from a fellow carpool association member in
3 
accordance with the provisions of this Act;
4 
e) Carpool Trip shall refer to the vehicle trip that commences at the carriage
5 
of the first carpool passenger and terminates upon the arrival of the carpool vehicle
6 
to its intended destination;
7 
f) 
Carpool l/e,/7/c/e'shall refer to a passenger car, utility vehicle or sports utility
8 
vehicle registered for private use that provides carpool service in accordance with the
9 
provisions of this Act;
10 
g) Gas Funds\\a\\ refer to an amount that may be collected by a carpool driver
11 
and/or owner from the carpool passengers to cover the expenses incidental to carpool
12 
vehicle operation such as carpool registration cost, fuel, oil and lubricant expenses,
13 
parking charges, toll fees, and vehicle upkeep expenses;
14 
h) Online Carpool Platform shall refer to electronic applications that allows
15 
carpool drivers and passengers to search for and communicate with other carpool
16 
drivers and passengers; and
17 
i) 
Owner shaW refer to the actual and legal owner of a motor vehicle, in whose
18 
name such vehicle is duly-registered with the Land Transportation Office (LTO).
19 
Sec. 4. Establishment o f Carpool Service. -  Owners of motor vehicles registered
20 
for private use are hereby allowed to provide carpool services subject to the following
21 
conditions:
22 
a) The carpool services shall be provided and accepted only among members
23 
of a carpool association on a purely voluntary basis;
24 
b) The carpool owner and/or driver and the carpool passenger shall have a
25 
common origin and destination;
26 
c) The carpool services shall be offered for a maximum of two (2) carpool trips
27 
a day regardless of the number of carpool passengers;
28 
d) The carpool driver or any carpool passenger shall not solicit for passengers
29 
on any road, parking area, tollway entrance, public transport terminal, and other
30 
similar facilities and establishments;
31 
e) The carriage of carpool passenger shall only be incidental to the carpool
32 
driver's or owner's original purpose for the trip;


1 
f) 
The carpool driver shall inform the carpool passengers in advance about
2 
the details of the trip, which shall include the date, time, pick up and drop off points,
3 
travel route and Gas Fund contributions, if any;
4 
g) The carpool driver shall not offer driving or vehicle rental services or display
5 
any material or information to that effect; and
6 
h) The owner of the vehicle shall register with the LTO as a carpool vehicle in
7 
accordance with its rules and regulations.
8 
Sec. 5. Classification o f Carpool Vehicles. -  Any provision of the law to the
9 
contrary notwithstanding, carpool vehicles shall be classified as private carriers and
10 
shall be subject to the provisions of Title II, Book IV of Republic Act No. 386, otherwise
11 
known as the " Civil Code o f the Philippines."
12 
Sec. 6. Motor Vehicle Registration. -  Carpool vehicles shall be registered as
13 
motor vehicles for private use. Registration for carpool service and subsequent
14 
renewal of carpool service registration may be executed along the renewal of motor
15 
vehicle registration in accordance with the rules and regulation of the LTO.
16 
The documentary requirements for carpool service registration shall include the
17 
following:
18 
a) Proof of Filipino citizenship;
19 
b) Valid LTO Official Receipt and Certificate of Registration of authorized unit/s
20 
in the name of the Owner;
21 
c) Valid driver's license of authorized owner/s and/or carpool driver/s;
22 
d) Valid Certificate of Employment, Certificate of Business Registration, or
23 
Proof of School Registration under the name of the owner/s and/or authorized carpool
24 
driver/s;
25 
e) Valid National Bureau of Investigation (NBI) or Philippine National Police
26 
(PNP) Clearance;
27 
f) Valid proof of billing addressed to the owner and/or driver;
28 
g) Certificate of motor vehicle insurance coverage;
29 
h) Proposed travel route from point of origin to the intended destination; and
30 
i) Other documentary requirements as may be deemed necessary by the
31 
Department of Transportation (DOTr) or the LTO.


1 
Sec. 7. Carpoo! Association. -  Carpool drivers, owners, and carpool passengers
2 
shall organize themselves into carpool associations to manage carpool services and
3 
iimit its provision to bona fide members of its organization. Carpool associations shall
4 
be registered with the Securities and Exchange Commission in accordance with its
5 
rules and regulations.
6 
Sec. 8. Membership in Carpooi Associations. -  Membership in carpool
7 
association shall consist of Regular Members and Associate Members. Filipino citizens
8 
of legal age, holder of at least Non-Professional Driver's License with Code 2 and 4
9 
Restrictions, and who own, possess or operate at least one (1) carpool vehicle shall
10 
be eligible for Regular Membership. Filipino citizens and resident aliens of legal age,
11 
and who neither hold a driver's license nor own, possess or operate a carpool vehicle
12 
shall be eligible for Associate Membership. Regular Members shall be accorded with
13 
more representatives in the Board of Trustees and more voting power in accordance
14 
with the articles of incorporation and by-laws of the carpool association.
15 
Sec. 9. Requirements for Membership in Carpooi Associations. -  The carpool
16 
association shall exercise due diligence in determining the identity of and accepting
17 
prospective members. Prospective members shall be accepted into a carpool
18 
association by a majority vote of its Board of Trustees in accordance with its articles
19 
of incorporation and by-laws: Provided, That the Board of Trustees, prior to the
20 
acceptance of prospective carpool association members, shall require the submission
21 
of documents that include, but are not limited to:
22 
a) Proof of identity of the prospective member;
23 
b) Valid Certificate of Employment, Certificate of Business Registration, or
24 
Proof of School Registration under the name of the prospective member;
25 
c) Valid driver's license for prospective carpool driver;
26 
d) Valid LTO Official Receipt and Certificate of Registration of the prospective
27 
carpool vehicle;
28 
e) Valid NBI or PNP Clearance;
29 
f) 
Valid proof of billing addressed to the owner and/or driver; and
30 
g) Other document deemed necessary by the Board of Trustees to ascertain
31 
the identity of prospective carpool association members.


1 
The data and information provided by prospective carpool association members
2 
shall be governed by the pertinent provisions of Republic Act No. 10173, otherwise
3 
known as the " Data Privacy Act o f 2012."
4 
Sec. 10. Identification o f Carpooi Association Members. -  The Carpool
5 
association shall issue non-transferable identification cards to its bona fide members.
6 
The identification cards shall be required to be shown prior to the provision or
7 
acceptance of the carpool services and shall remain in the possession of the respective
8 
members throughout the duration of the carpool trip.
9 
Sec. 11. Conveyance o f Carpool Passengers. -  Carpool drivers are hereby
10 
allowed to pick up carpool passengers in proximity to their point of origin and to drop
11 
off carpool passengers in proximity to the carpool driver's intended destination:
12 
Provided, That the carpool driver shall only be allowed to ferry carpool passengers
13 
belonging to the same carpool association: Provided, further, That the carpool driver
14 
shall only be allowed to ferry as many passengers as recommended by the vehicle
15 
manufacturer: Provided, finally. That under no circumstances shall the number of
16 
carpool passengers in a carpool vehicle exceed six (6) persons excluding the carpool
17 
driver.
18 
Sec. 12. Gas Fund Contribution. -  The owner of the vehicle shall not accept or
19 
charge any fare from carpool passengers, except for the contribution to the carpool
20 
vehicle's Gas Fund on a non-profit basis: Provided, That the maximum amount of Gas
21 
Fund contribution of carpool passengers shall not be higher than the estimated cost
22 
of taxi service from the point of origin to the point of destination: Provided, further,
23 
That the DOTr shall, in consultation with the Department of Energy (DOE), determine
24 
the maximum rate of Gas Fund contribution that may be collected from carpool
25 
passengers, taking into account the maximum number of allowable passengers as
26 
provided in Section 11 of this Act, the distance and duration of travel from the point
27 
of origin to the point of destination, and a realistic estimate of expenses incidental to
28 
carpool vehicle operation: Provided, finally. That the DOTr shall adjust the rate of Gas
29 
Fund contribution once every three (3) years after the effectivity of this Act using the
30 
Consumer Price Index (CPI) for the Operation of Personal Transport Equipment, as
31 
published by the Philippine Statistics Authority (PSA).


1 
Sec. 13. Maintenance o f Carpoo! Vehicles. -  The owners of carpool vehicles
2 
shall follow the recommended preventive maintenance schedule of the vehicle
3 
manufacturer: Provided, That the owners shall maintain a record documenting the
4 
maintenance services performed on their vehicles and the dates when such
5 
maintenance services were performed as attested to by the vehicle maintenance
6 
service provider: Provided, further. That a copy of the carpool vehicle maintenance
7 
service record shall be required by the LTO in the renewal of the carpool vehicle
8 
registration.
9 
Sec. 14. Insurance o f Carpool Vehicles. -  The owners of the carpool vehicles
10 
shall be required to contract a comprehensive motor vehicle insurance from a
11 
reputable insurance provider to cover the carpool vehicle and its passenger against
12 
insurable risks: Provided, That a copy of the comprehensive motor vehicle insurance
13 
for the carpool vehicle shall be required by the LTO in the registration and renewal of
14 
the carpool vehicle registration.
15 
Sec. 15. Violations. -  The following shall be constituted as violations of this
16 
Act:
17 
a) Engaging in carpool services without or with expired carpool registration;
18 
b) Provision of carpool services without carpool association membership;
19 
c) Provision of carpool services to non-members of carpool association;
20 
d) Exceeding the maximum daily carpool trips allowed;
21 
e) Soliciting for passengers on any road, parking area, tollway entrance, public
22 
transport terminal, and other similar facilities and establishments;
23 
f) Exceeding the vehicle's recommended number of passenger or the
24 
maximum number of passengers as provided in Section 11 of this Act, whichever is
25 
lower;
26 
g) Offering driving or vehicle rental services or displaying materials and
27 
information to that effect;
28 
h) Engaging in carpool services with invalid or expired motor vehicle
29 
insurance;
30 
i) Collecting more than the maximum Gas Fund contribution from carpool
31 
passengers; and


1 
j) 
other acts or omissions inconsistent with the provisions of this Act as may
2 
be determined by the DOTr.
3 
The DOTr and the LTO shall, after conducting public consultation, determine
4 
the appropriate fines and penalties for the violation of any provisions in this Act.
5 
Sec. 16. Carpoo! Passenger Complaints. -  Carpool associations shall establish a
6 
mechanism to receive and address complaints arising from the carpool services within
7 
their respective associations. The DOTr shall likeiwse establish a system to receive
8 
and address the complaints of carpool passengers against owners, carpool drivers,
9 
and carpool associations in accordance with its rules and regulations.
10 
Sec. 17. Carpool Incentives. -  The DOTr, LTO, Metro Manila Council, local
11 
government units, and other government agencies concerned may provide incentives
12 
to promote the use of carpool services such as, but not limited to: designation of
13 
dedicated carpool lanes, exemption from Expanded Unified Vehicular Volume
14 
Reduction Program and other similar traffic schemes, and discounts on toll fees and
15 
vehicle registration fees.
16 
Sec. 18. Online Carpool Application. -  Carpool associations or other third-party
17 
developers may use electronic or online carpool application to provide seamless
18 
connection between carpool association members: Provided, That owners and carpool
19 
drivers can only provided carpool services in accordance with Section 4 of this Act:
20 
Provided, further. That the total cost of using carpool platform and carpool services
21 
shall not exceed the maximum Gas Fund contribution as provided in Section 12 of this
22 
Act.
23 
Sec. 19. Exemptions. -  The carpool owner and/or driver shall secure at least a
24 
Non-Professional Driving License from the LTO to operate carpool vehicles: Provided,
25 
That carpool drivers who are employed as personal or corporate drivers, or who
26 
operates motorcycles, buses, trucks or articulated vehicles shall be required to obtain
27 
the appropriate driving license from the LTO.
28 
The carpool vehicle shall be exempted from securing a Certificate of Public
29 
Convenience or any public land transportation service franchise or authorization issued
30 
by any government agency or instrumentality: Provided, That the carpool owner
31 
and/or driver satisfy all the conditions stipulated under Section 4 of this Act: Provided,
32 
further. That no provision in this Act shall be construed as allowing the commercial


1 
operation of any motor vehicle registered for private use, or repealing, amending or
2 
modifying any law, rule or regulation that compels the satisfaction of any and all
3 
requirements prior to the operation of public land transportation services.
4 
Sec. 20. Implementing Rules and Regulations. -  Within sixty (60) days from
5 
the effectivity of this Act, the DOTr shall, in consultation with the LTO and other
6 
government agencies concerned, promulgate the necessary rules and regulations to
7 
effectively implement the provisions of this Act.
8 
Sec. 21. Separability Clause. - If, for any reason, any provision of this Act or
9 
any part thereof shall be held unconstitutional and invalid, the other parts or provisions
10 
of this Act, which are not affected thereby, shall remain in full force and effect.
11 
Sec. 22. Repealing Clause. -  All laws, decrees, orders, rules and regulations or
12 
parts thereof inconsistent with any of the provisions of this Act are hereby repealed,
13 
amended or modified accordingly.
14 
Sec. 23. Effectivity. -  This Act shall take effect fifteen (15) days after its
15 
complete publication in at least two (2) newspapers of general circulation or in the
16 
Official Gazette.
Approved,