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Republic of the Philippines kK RECEIVED ”
HOUSE OF REPRESENTATIVES IS oF Mm
Quezon City * = DATE
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TWENTIETH CONGRESS
First Regular Session

House Bill No.2137

Introduced by Representative Julius Cesar “Jay” V. Vergara

EXPLANATORY NOTE

The tricycle sector is one of the primary means of transportation in the country,
providing efficient transportation services, especially in rural areas. It also serves as a
cultural icon and provides livelihood to many Filipino families.

In 2022, there were over 1.5 million registered tricycles in the Philippines. That
same year, Region III accounted for the highest share, which included our City of
Cabanatuan, Nueva Ecija, dubbed as the "Tricycle Capital of the Philippines," having
around 30,000 registered tricycles with 10,000 families relying on this industry as their
source of livelihood. Despite its large participation in the local transportation
industry, the tricycle sector is one of those least given attention to in terms of
government support. Thus, the drivers and operators have become vulnerable to
employment predicaments and abusive regulatory practices.

Section 447 (a)(3)(vi) and Section 458 (a)(3)(vi) of the Local Government Code
provide that the Sangguniang Bayan and Sangguniang Panglungsod have the power to
regulate the operation of tricycles and grant franchises for the operation thereof within
the territorial jurisdiction of the municipality and the citv. Local government units
(LGUs) thus have the legal mandate to regulate the use of tricycles as public utility
vehicles and to issue franchises for their operation. This transfer of the powers
performed by the then Department of Transportation ancl Communication (DOTC)
and by the Land Transportation Franchising and Regulatory Board (LTFRB) to the
LGUs by the Local Government Code sought to address the rise in the number of
accidents that tricycles figured in. The idea behind the devolution of powers to the
LGUs is that they are better positioned to address these problems due to their
closeness to the issues confronting tricycles as opposed to the DOTC.!

This power to regulate is still subject to the guidelines prescribed by the
Department of Transportation. This is embodied in the "Guidelines to Implement the
Devolution of LTFRBs Franchising Authority over Tricycles-For-Hire to Local
"Land Transporation Office v. City of Butuan, G.R. No. 131512, 29 January 2000,

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Government units pursuant to the Local Government Code." The Guidelines provide
that in lieu of the LTFRB in the DOTC, the Sangguniang Bayan or the Sangguniang
Panlungsod shall issue, amend, revise, renew, suspend, or cancel the Motorized
Tricycle Operators Permit and prescribe the appropriate terms and conditions
therefor. The said rules also provide for minimum operating conditions for tricycles.

Despite this devolution, however, our tricycle drivers still experience problems
with the city or municipal government. For example, some drivers reported the
collection of illegal fees, some noted the illegal sale of tricycle franchises, and some
reported the issuance of multiple permits for just one tricycle number. Other recurring
problems include the tough working conditions of tricycle drivers as well as the poor
maintenance of tricycles which generally leads to air pollution.

This bill seeks to provide a magna carta for tricycle drivers and operators. It will
ensure the safety and protection of this sector from abusive practices in local and
national agencies as well as the continued growth of this cultural icon that serves as
the livelihood of a large number of Filipino families. This proposal provides for a
simplified registration system, a one-stop-shop for tricycle operators, health care and
social benefits, lesser penalties compared to their four-wheeled counterparts, the
promotion of more economical and eco-friendly engines, as well as a more concrete
and defined role for local government units in the development of the sector.

In view of the foregoing, the immediate adoption of this measure is earnestly

requested.
ted

JULIUS CESAR “JAY” V. VERGARA
Third District of Nueva Ecija


RON

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS.
First Regular Session

House Bill No. 2737

Introduced by Representative Julius Cesar “Jay” V. Vergara

AN ACT
PROVIDING FOR A MAGNA CARTA OF TRICYCLE DRIVERS AND
OPERATORS AND INSTITUTIONALIZING THE MECHANISMS FOR ITS
IMPLEMENTATION

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 “Magna Carta of
Tricycle Drivers and Operators.”

Sec. 2. Declaration of Policy. - It is the policy of the State to:

a) Promote and improve the total well-being of the members of the tricycle
sector particularly the marginalized low-level income earners by providing
adequate and timely social, economic, and legal services, as well as a mechanism
that protects rights and promotes benefits that ensure dignified existence and
economic advancement;

b) Recognize, promote, protect, and fulfill the rights of every member of the
tricycle sector, particularly the tricycle drivers and operators, whose rights include
the right to self-organization, right to decent work under just and humane working
conditions, access to social protection, and right to represent their organizations
in a continuing process of consultation and dialogue towards maximizing the
provision of a comprehensive package of reforms, interventions, and services in
accordance with their articulated needs and interests;

c) Prioritize the enactment of measures that protect and enhance the rights
of all people to human dignity, reduce social, economic, and political inequalities
and remove cultural inequalities by diffusing wealth and political power for the

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common good and to provide environments at the national and local levels that
enable all workers to fully develop into productive and responsible citizens;

d) Recognize the roles and contributions of members of the tricycle sector,
make them visible in the national and local statistics, and develop the local
economy by maximizing their potential;

e) Promote gender equity and equality through the elimination of gender
stereotypes attached to this sector, and protecting the women workers against
gender-based discrimination, exploitation, violence, and all other forms of abuse;

f) Protect vulnerable groups in the tricycle sector such as the elderly and
differently-abled persons from safety issues, discrimination, and harassment;

g) Eliminate child labor in the tricycle sector through effective enforcement
of laws against child labor and the creation of more quality jobs for adults; and

h) Promote the safety and security of citizens especially those that are
vulnerable to accidents and mishaps, to safeguard the sanctity of life and to ensure
the safety of every human being in its territories.

Sec. 3. Framework and Principles. — The local government units (LGUs)
shall pursue and implement a comprehensive, rights-based, participatory and
gender-responsive framework for members of the tricycle sector under a
Comprehensive Development Plan that includes:

a) Putting in place policies and programs that shall bring members of the
tricycle sector to the economic and social mainstream;

b) Pursuing structural reforms in all relevant levels of LGUs by creating
committees, special offices for development and protection of workers in the
tricycle sector and supporting representational rights through their organizations;

c) Extending coverage of accessible and affordable social security and
health care benefits to workers in the tricycle sector; and

d) Exacting responsibility on the part of the tricycle sector members to
promote and ensure the convenience, safety and security of the riding public and
stakeholders in the sector, and protection of the environment: Provided, That the
State shall recognize the rights of the tricycle sector and put in place responsive,
transparent and accountable mechanisms to ensure the protection, promotion and

realization of those rights.


See. 4. Definition of Terms. — As used in this Act:

a) Colorum refers to: 1) a private vehicle operated for public utility without
the benefit of a valid and existing special permit, provisional authority or
franchise; 2) a public utility vehicle operating outside its approved route without
prior permit from the issuing authority; or 3) a public utility vehicle operating
differently from its authorized denomination;

b) Local government units (LGUs) refer to cities and municipalities;

c) Motorist awareness program refers to any information or public
awareness program designed to enhance motorist awareness on the presence of
tricycles on or near roadways;

d) Motorized Tricycle Operators Permit (MTOP) refers to the permit that
authorizes the holder to operate a tricycle for public transport;

e) Sanggunian refers to the sangguniang panlungsod or the sangguniang
bayan, as the case may be;

f) Tricycle refers to a motor vehicle composed of a motorcycle fitted with a
single-wheel sidecar, or a motorcycle with a two-wheel rear cab — the former
having a total of three wheels and the latter having a total of four wheels,
otherwise known as the motorela. The term shall include all three-wheeled motor
vehicles classified as L4 and L5 motorcycles by the Land Transportation Office
(LTO);

g) Tricycle drivers safety program refers to any formal program of
instruction that covers accident avoidance, compliance with road safety laws and
best practices and provides other safety-oriented operational skills to tricycle
drivers, including innovative training to meet unique regional needs;

h) Tricycle Operators and Drivers’ Association or TODA refers to the
organization of tricycle operators and drivers in a given LGU; and

i) Tricycle sector refers to a group consisting of drivers and operators of
tricycles for public transportation in the Philippines.

Sec. 5. Tricycle Operating Requirements. ~ Tricycles shall be operated
subject to the following requirements:

a) Subject to the guidelines to be prescribed by the Department of
Transportation (DOT:), the LTO and Land Transportation Franchising and


Regulatory Board (LTFRB), the LGUs shall have the power to regulate the
operation of tricycles and grant permits for the operation thereof within their
territorial jurisdiction.

Before issuing the MTOP, the concerned LGU shall submit for approval of
the DOTr a Local Public Transport Route Plan that includes the tricycle routes
and zones, alternate tricycle route plan, designation of terminals, and maximum
number of tricycles operating within its jurisdiction. Such plan, which must
comply with the guidelines promulgated therefor with the end goal of ensuring
overall efficiency, integration and safety of the transportation system, shall be
approved by the DOTr within a period of sixty (60) days from receipt thereof.

b) For safety reasons, no tricycle shall operate on national highways utilized
by 4-wheeled vehicles greater than four (4) tons and where normal speed exceeds
forty (40) kilometers per hour: Provided, however, That the concerned
Sanggunian, through an ordinance, may provide exceptions if there are no public
transportation servicing the said route, either along the highway or crossing the
same, other than tricycles, subject to the approval of the DOTr: Provided, further,
‘That the exception may also be allowed by the concerned Sanggunian when there
is no other access to the areas concerned other than the national highway as
determined by the LGU: Provided, furthermore, That when such operation is
allowed, tricycles shall only be allowed to traverse the outer right lane of the road
except when preparing to turn, and the LGU is mandated to provide appropriate
signages, marks for lanes, and other safety features to guide and protect the
tricycles utilizing the highways.

Within ninety (90) days from the effectivity of this Act, the concerned LGUs
shall enact the necessary ordinance for this purpose.

Tricycles shall not be allowed to travel beyond their regular route of service
as embodied in their franchise except during medical emergency, typhoon, flood,
conflagration and analogous fortuitous circumstances where deviation from the
regular route is necessary to save lives, prevent injuries or damage to property.

c) Operators shall only employ drivers possessing professional licenses duly
issued by the LTO. For this purpose, the LTO shall issue guidelines, including

theoretical and practical examinations, appropriate for drivers of tricycles.


d) The LTO shall ensure the roadworthiness of tricycles before registration
or renewal of registration, including compliance with environmental laws. In
coordination with motorcycle and tricycle manufacturers and the Department of
Trade and Industry (DTI), the LTO shall formulate safety standards and the
allowable designs and modifications, taking into consideration the needs of the
vulnerable groups, and determine the limitations on passengers and weight or
load capacity. Such limitations shall be indicated on the body of the tricycles.

e) Operating zones shall be within the boundaries of the concerned LGU.
However, existing operating zones traversing two (2) or more LGUs may be
maintained: Provided, That operators serving said zones shall secure the
necessary MTOP from each of the LGUs having jurisdiction over the covered
areas: Provided, further, That the fees to be charged for the permit allowing a
tricycle to operate outside the jurisdiction of the LGU where it has established its
base of operation shall be lesser than the fees charged for the issuance of the
MTOP under Section 6 hereof, which amount shall be provided in the
implementing rules and regulations (IRR) of this Act.

f) An LGU may adopt a common color-coding scheme for tricycles operating
in the same zone. Each unit shall be assigned and bear an identifiable body
number, aside from its license plate number issued by the LTO.

g) An operator wishing to completely terminate its service shall report in
writing such termination to the LGU which originally granted the MTOP.

h) The MTOP shall be valid for five (5) years, renewable for the same period.
‘The change of zone of operation, change of ownership of tricycle unit or transfer of
MTOP shall be construed as an amendment to an MTOP which shall require
appropriate approval of the concerned LGU.

i) A tricycle shall be allowed to operate similar to a taxi service where, aside
from rendering services in the designated terminal, it can be flagged-down or
engaged by passengers on the road within its authorized zone of operation.

j) An operator shall be covered by personal passenger accident insurance
policy and third-party liability insurance policy before the LTO registers the
tricycle as “for-hire” or before the renewal of registration thereof, during the

validity of its MTOP.


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ky Prior to the issuance of the MTOP, tricycles shall be marked or installed
with signage to show their passenger capacity.

The concerned LGUs shall impose no other additional requirement for
tricycle operation, except those provided under this Act.

Sec. 6. Registration and Issuance of the MTOP. ~ There shall be a
simple system and procedure for registration and issuance of the MTOP in
accordance with the framework and principles of this Act. The fees for registration
and issuance of an MTOP, which shall be valid for a five-year period, shall not
exceed One thousand pesos (P1,000.00). The amount shall cover the filing fee,
franchise fee, inspection fee, fare adjustment fee, amendment fee, regulatory fee,
and all other miscellaneous fees, No other fees shall be exacted from the tricycle
sector business activities or enterprise other than the registration fee as
mentioned above.

‘The DOTr may increase or adjust the fees herein imposed once every five
(6) years: Provided, That in no case shall the increase be more than ten percent
(10%) of the prevailing amount.

See. 7. Tricycle Sector One-Stop Shop. ~ All LGUs shall establish a
Tricycle Sector One-Stop Shop which shall handle all transactions and processing
of the business permit applications within their respective jurisdictions. The One-
Stop Shop shall ensure that the processing of the MTOP of the members of the
tricycle sector shall commence on the day of their application and the registration
shall be released within thirty-six (36) hours upon submission of the complete
requirements.

To facilitate efficient and expeditious processing of the MTOP applications,
the LGUs shall also formulate a uniform and simple checklist of requirements for
registration and flowchart of the procedure of registration. The LGUs shall also be
responsible in translating the checklist of requirements and flowchart of procedure
of registration in their own local dialect. The LGUs shall cause the posting of the
checklist and flowchart of procedure of registration in at least three (3)
conspicuous areas, preferably in public areas in the community and in tricycle
terminals, and cause the publication of the same in the local newspaper, if there

is any.


The information about the One-Stop Shop shall be included in the Citizen's
Charter of LGUs through any available medium.

See. 8. Rights and Benefits of Workers in the Tricycle Sector. ~ The
members of the tricycle sector shall have the following rights:

a) Self-organization, to collectively negotiate with government and other
entities in the promotion of their welfare and advancement of interests free from
any political interference or favor;

b) Informed participation in decision-making processes relevant to the other
concerns of their sector through their legitimate organizations. To this end, they
shall be represented in all public hearings for laws, ordinances, or regulations that
will affect their sector;

c) Access to medical care services and insurance;

4) Freedom from any form of discrimination, violence, exploitation, or
harassment;

) Freedom from deprivation of property without valid cause and due
process of law;

f) Equal access to information on how to safeguard their rights according to
law;

g) Safe working conditions; and

h) Protection from any act of interference, coercion, extortion, and
bureaucratic red tape in the exercise of their rights.

See. 9. Government Support to the Tricycle Sector. — All concerned national
government agencies, government financial institutions, and LGUs shall include
in their plans, programs, projects, and activities efforts that are supportive of the
foregoing rights and other concerns of the tricycle sector. Each LGU shall also
create a grievance mechanism to deal with the concerns of the members of the
tricycle sector. The members of the tricycle sector shall likewise be entitled to legal
assistance from the government for the protection and enforcement of the rights
provided under this Act.

Sec. 10, Mandatory Membership in SSS and National Health Insurance
Program. - The Social Security System (SSS) and the Philippine Health Insurance
Corporation (PhilHealth), within ninety (90) days from the issuance of the IRR of


this Act, shall promulgate guidelines for strengthening the mechanisms of
providing social security and health insurance coverage to members of the tricycle
sector. The SSS shall also inform its members from the tricycle sector of the
services and loans that the latter can avail of. The PhilHealth shall coordinate and
collaborate with the tricycle sector organizations, the Department of Social
Welfare and Development and other concerned government agencies, and the
LGUs to determine the financial capability of the members of the tricycle sector to
pay premium contributions and to identify those members who shall be entitled to
the national government subsidy.

See. 11. Role of the Local Government Units. - Subject to the operating
conditions in Section 5 of this Act and the guidelines to be promulgated by the
DOTr, LTO and LTFRB, LGUs shall have the following responsibilities:

a) The LGUs, after consultation with the transport groups, the affected
communities, and other stakeholders, shall identify and designate viable routes
and terminals of tricycle within the city or municipality. Viable terminals shall be
established in proximity to public buildings, public markets, private markets,
commercial districts, or commercial establishments and other places which the
public frequently visits.

b) The Sanggunian, within ninety (90) days after the identification and
designation of routes and terminals through public consultation and survey by the
local planning and development office or appropriate transportation development
and traffic management office of the LGU concerned, shall pass an ordinance
designating the routes and the terminals of tricycles as specified in this Act.

An LGU, which has already established or designated routes and terminals
of tricycles prior to this Act, is deemed to have complied with this provision of the
Act: Provided, That the aforesaid establishment or designation of routes and
terminals have been undertaken after consultation with the stakeholders.

c) The LGUs, in coordination with the DOTr, LTO and public and private
stakeholders, shall also lead a tricycle maintenance program. This shall be done
by providing the existing TODAs within their jurisdiction, training and instruction
on tricycle preventive and periodic maintenance in tandem with the Department

of Science and Technology (DOST) and other private institutions.


d) Vocational education on motorcycle or small engine repair, driving, auto-
servicing and related courses like engine repair and maintenance shall also be
offered by the LGUs to the members of the tricycle sector, in coordination with the
Department of Labor and Employment (DOLE) and the Technical Education and
Skills Development Authority (TESDA). With the help of DOLE and TESDA,
LGUs shall also provide opportunities for alternative livelihood and skills-training
programs to allow tricycle drivers to explore more economically rewarding sources
of income.

e) There shall be a regular conduct of mandatory Tricycle Drivers Safety
Program at the LGU level. The content and structure of the Tricycle Drivers Safety
Program shall be formulated by the DOTr, LTO, LTFRB, DOST and other relevant
government agencies. The LGUs shall require all tricycle drivers within its
jurisdiction to undergo a periodic safety orientation or seminar under this
program. To complement this program, the LTO and LTFRB shall include a
Motorist Awareness Program in all its safety trainings.

f) The LGUs, in coordination with law enforcement agencies, shall prevent
the proliferation of illegal or colorum tricycle units.

g) The LGUs, in coordination with the DOLE and other concerned agencies,
shall ensure the regular conduct of seminars to prevent the unlawful employment
of children as tricycle drivers and the gender-based discrimination in granting
driver's licenses.

h) The LGUs, through their respective traffic management offices, shall
conduct regular monitoring activities to ensure that no children are employed as
tricycle drivers.

i) Consistent with the provisions and objectives of this Act, the LGUs are
also hereby empowered, through ordinance or as terms or conditions in the
issuance of MTOP, to define and penalize such acts which constitute as violations
in relation to the operation of tricycles within their respective jurisdictions.

Sec. 12. Phase-in of More Efficient Engines. - Within thirty (30) days from
the issuance of the IRR of this Act, the DOTr and the DOST shall implement a
continuing program to encourage manufacturers to develop more efficient engines

and cleaner technologies to be used by the tricycle sector. The DTI-Bureau of


Philippine Standards, in coordination with the Department of Environment and
Natural Resources-Environmental Management Bureau, LTO and DOST, shall
prescribe the standards and specifications for tricycle engines to be observed by
the tricycle sector in pursuit of cleaner technologies and in accordance with
Republic Act No. 8749, otherwise known as the “Philippine Clean Air Act of 1999”.

See. 13. Policy on Impounding of Tricycles. — Tricycles shall not be impounded,
confiscated, or destroyed for mere violation of traffic rules and regulations, in
which case a traffic violation ticket shall be issued to the erring driver.

A tricycle may be impounded under the following circumstances:

a) When used to perpetrate a crime;

b) If it is operated without an MTOP or with an expired MTOP;

c) Ifit is operated under a fictitious MTOP;

d) If operated by a driver without the required Driver's License: Provided,
That upon payment of the penalty or fine, the tricycle shall be released to a duly
licensed driver on behalf of the operator;

e) If it is not roadworthy or not built nor modified in accordance with the
design prescribed by the LTO; or

f) If it is not compliant with the Philippine Clean Air Act of 1999 or other
environmental laws.

Sec. 14. Penalties. -

a) A public officer or employee who acts in violation of Sections 5, 6, or 7
hereof, in addition to criminal liability under existing laws, shall be penalized with
a penalty of suspension from office for a period of one (1) to six (6) months.

b) A public officer who acts in violation of the provisions of Section 13 hereof
shall be administratively liable without prejudice on the part of the aggrieved
member of the tricycle sector from initiating a criminal or civil action, if applicable.

©) A driver who operates a tricycle in highways without valid authorization
as mentioned in Section 5 (b) hereof, transports passengers or goods beyond the
limitations on the number of passengers and on load capacity, or operates a
tricycle that is not compliant with environmental laws shall be punished by a fine
of not less than Five hundred pesos (P500.00) but not more than Two thousand
pesos (P2,000.00).


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d) A driver who violates other traffic rules or regulations not specifically
provided herein shall be punished in accordance with applicable traffic laws.

e) An operator who operates a tricycle without or with an expired or
fictitious MTOP or allows a driver to operate a tricycle that is not roadworthy or
with unauthorized modification affecting vehicle safety, shall be punished by a
fine of not less than Five hundred pesos (P500.00) but not more than Two thousand
pesos (P2,000.00) and the impoundment of the tricycle by an enforcement agency
for a period of two (2) months. The second and succeeding commission of similar
offenses shall warrant the revocation of the MTOP or perpetual disqualification
from being issued of the said privilege.

f) A driver who operates a tricycle in a fast lane shall be penalized by a fine
of Ten thousand pesos (P10,000.00).

g) An operator who employs a minor or a driver without the requisite license
to drive a tricycle shall be penalized in accordance with the fines imposed by the
LTO for such violation but in no case shall be less than Three thousand pesos
(P3,000.00). The subsequent violation of similar offense shall warrant the
revocation of the MTOP: Provided, That in the case of a minor offender, the fine
shall not be less than Ten thousand pesos (P 10,000.00).

h) Any person who willfully interferes with, restrains or coerces any
member of the tricycle sector in the exercise of the latter's rights or shall in any
manner act in violation of Section 8 of this Act shall, upon conviction, be punished
by a fine of not less than Fifty thousand pesos (P50,000.00) but not more than Five
hundred thousand pesos (P500,000.00) or imprisonment not exceeding one (1) year
or both, at the discretion of the court: Provided, That if the offender is a public
official, the court may, in addition to the penalties herein provided, impose the
penalty of disqualification from office.

Sec. 15. Implementing Rules and Regulations. - The DOTr shall, in
coordination with the LTO, LTFRB, SSS, PhilHealth, DOLE, TESDA, DOST, DTI,
Department of the Interior and Local Government, Department of Public Works
and Highways, Metropolitan Manila Development Authority, the League of Cities
of the Philippines, League of Municipalities of the Philippines and the national

representative of the tricycle operators and drivers association, issue the IRR of


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this Act within ninety (90) days from its effectivity. The IRR shall include the
guidelines for the allocation of the fund for subsidizing the SSS or PhilHealth
premiums of the members of the tricycle sector and the programs that will benefit
them.

Sec. 16. Separability Clause. - If for any reason, any provision of this Act
is declared unconstitutional or invalid, such parts not affected thereby shall
remain in full force and effect.

Sec. 17. Repealing Clause. — All laws, decrees, executive orders, rules and
regulations and other issuances or parts thereof which are inconsistent with this
Act are hereby repealed, amended or modified accordingly.

Sec. 18. Effectivity.— This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,