NINETEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES
Frsl Regular Session
HOUSE OF REPRESENTATIVES
lntroduced by Representative Rufus B. RodriEuez
This bill was filed
Representatives.
House Bill No. _
EXPLANATORY NOTE
during the 18th Congress and was approved by the House of
Section 7(a) of Republic Act No. 4'136 provides:
Section 7. Registration Classification. - Every motor vehicle shall be
registered under one of the following described classifications:
(a) private passenger automobiles; (b) private trucks; and (c) private
motorcycles, scooters, or motor wheel attachments. Motor vehicles
registered under these classifications shall not be used for hire
under any circumstances and shall not be used to solicit, accept, or
be used to transport passengers or freight for pay.
XXX XXX XXX
The law thus prohibits the use of private motorcycles for public transport.
However, with the worsening traffic situation in the country, more and more people are turning
to motorcycles-for-hire, more commonly known as habal-habal ot angkas. Habal-habal ot
angkas is being considered as an alternative to other modes of public transportation because
some see it as the most convenient and cheapest means of transportation. This despite the
lack of a law authorizing this mode of public transportation and the lack of regulations over it.
RU
S B. RO
UEZ
)
)
)
This proposed amendment to Republic Act No. 4136 solve the existing inadequacies in our
laws and shall promote the safety and welfare of people who patronage motorcycles-for-hire
known as habal-habal ot angkas. Any two-wheeled motor vehicle known as motorcycles-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.
ln view of the foregoing, immediate approval of this measure is earnestly requested.
July 8, 2022
3:03 pm
1668


NINETEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES
Flrsf Rega/ar Sessrbn
)
)
)
HOUSE OF REPRESENTATIVES
lntroduced by Representative Rufus B. Rodriguez
House Bill No.
AN ACT
REGULATING THE OPERATION OF MOTORCYCLES-FOR-HIRE
Be it enacted by the Senate and the House of Representatives of the Philippines r,h Congress
assemb/ed
SECTION 1. Shott lftle. - This Act shall be known as the "Motorcycles-for-Hire Act."
SEC. 2. Declaration of Policy. - The State recognizes the importance of transpodation in
economic development. The recent innovations in technology have opened an opportunity for
alternative 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 ofthe general public is protected. Thus,
the State shall allow the regulated operation of motorcycles-for-hire to provide the public with
an alternative mode of public transportation that is sufficient, safe, secure and economical.
Towards this end, the State shall establish mechanisms and guidelines in regulating all
the operational aspec{s of motorcycles-for-hire.
SEC. 3. Definffio n of Terms. - As used in this Act:
a) Motorcycle refers to any two (2)-wheeled motor vehicle without appendages;
b) Motorcycle-for-hlie refers to a motorcycle, duly registered as such underthis Act, and
used to carry passengers or goods on a for hire basis, offering its services to the public;
c) Multi-homing refers to an approach where an operator may accredit a particular
motorcycle-for-hire to more than one transport network company or Online E-commerce
Platform Provider allowing the same to utilize more than one digital platform in delivering
transport services;
d) Online E-commerce platform provider refers to a natural or juridical person whose
primary business is to provide the digital platform that connects online buyers and online
sellers to facilitate the sale of products, goods or services through the internet;
e) Operator rcfers to the person in whose name the motorcycle-for-hire is registered;
0 Rder refers to the driver of the motorcycle-for-hire; and
g) Transpoftation network company refers to an entity which provides pre-arranged
transportation services for compensation using an internet-based technology application or
digital platform technology to connect clients with riders to facilitate a contract of carriage using
a motorcycle-for-hire.
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 which
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
1668


transporting passengers or goods, and on the presumption of culpability in case of breach of
a contract of carriage. A transportation network company (TNC) or an Online E-Commerce
platform provider (OEPP) should exercise due diligence and reasonable care in accrediting
motorcycle-for-hire operators and drivers that shall under their platforms.
SEC. 6. Registration of Motorcycles-For-Hire. - A motorcycle intended to be used as a
motorcycleJor-hire must be duly registered with the Land Transportation Ofiice (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 (DOTr), upon the recommendation of the Department of Trade and lndustry -
Bureau of Philippine Standards (DTI-BPS) and LTO, shall prescribe the standards and
specifications of motorcycles that may be allowed to operate as motorcycles-for-hire, taking
into consideration the safety of the riders and passengers.
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, speed limiter or monitoring devices, in accordance with the
standards and specifications prescribed by the DTI-BPS and as approved by the LTO under
existing laws, rules and regulations.
SEC. 8. Franchising of Motorcycles-For-Hire. - The franchising of motorcycles-for-hire in
metropolitan and urbanized areas with an existing and operating TNC or OEPP is vested in
the Land Transportation Franchising and Regulatory Board (LTFRB). The LTFRB shall set
forth in the franchise granted to operators, the terms and conditions to be observed in the
operation of motorcycles-for-hire. Such franchise shall allow the operator to engage in multi-
homing operation upon accreditation with other TNCs or OEPPS.
The LTFRB, in coordination with the concerned local government unit in a province, city
or municipality, shall determine the number of units and areas of operation, or routes if
applicable, of motorcycles-for-hire in accordance with the route rationalization plan or studies
adopted by the DOTr: Provided, That in determining the number of motorcycle-for-hire units
to be operated by TNCs and OEPPs, the demand for their services shall be the basis for the
LTFRB in the issuance of franchise.
The franchise fee and any other related charges for operating a motorcycle-for-hire shall
be determined by the LTFRB, sub.ject to the approval of the DOTr.
ln areas outside the metropolitan areas or regional hubs and where there is no existing
or operating TNC or OEPP, the application for a franchise shall be coursed through the LGU
under which jurisdiction the motorcycle-for-hire intends to operate: Provided, Thal a
motorcycle-for-hire may only operate within the territorial jurisdiction of the LGU concerned:
Provided fufther, That the LGUs may recommend the appropriate number of units that may
be allowed to operate in their respective jurisdictions based on the demand in the locality.
To ensure the fast and efficient processing of franchises, the LTFRB and LGUs shall
establish a system of coordination that shall be incorporated in the rules and regulations to be
issued pursuant to Sec. 21 of this Act.
SEC. 9. Requirements for the Grant of a Franchise or lssuance of a Ceftificate of Public
Convenience (CPC). * A CPC shall only be issued to an operator upon submission or and
compliance with the following requirements:
a) Proof of Filipino citizenship;
b) Proof of accreditation by a TNC or OEPP for motorcycles-for-hire under the digital
platform or business permit issued by relevant city or municipality for motorcycles-for-hire not
operating under a TNC or OEPP;
c) Certificate of Registration duly issued by the LTO;
d) Appropriate space to serve as a garage for a franchise applicant intending to
operate three (3) or more motorcycles-for-hire;


e) lnsurance coverage for any death or injury that may occur to a rider, passenger or
any third party or damage to property by reason or on occasion of its operation; and
f) Tax ldentification Number or Certificate of Registration as Common Carrier issued
by the Bureau of lnternal Revenue (BlR), if applicable.
SEC. {0. Qualifications of Motorcycle-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 oftheoretical and practical examinations that are appropriate for
the operation of a motorcycle-for-hire. Only riders possessing such professional driver's
license shall be allowed to operate motorcycles-for'hire. The LTO shall conduct a continuing
safety training program for licensed riders of motorcycles-for-hire with a curriculum duly
certified by the Technical Education and Skills Development Authority (TESDA): Provided,
That licensed riders shall attend at least one (1) safety training seminar every year.
SEC. 11 . Accreditation Requirements of INCS and OEPPS. - A TNC or OEPP must be duly
registered with the Securities and Exchange Commission (SEC).
Before a TNC or OEPP which utilizes motorcycles-for-hire in its business operations is
allowed to operate as such, it must comply with the accreditation requirement of Department
of lnformation and Communications Technology (DICT). The DTl, LTFRB and DICT shall
jointly issue the guidelines that shall govern the operations of TNCs and OEPPs using
motorcycles-f or-h ire.
The TNCs and OEPPs must possess and maintain the following minimum requirements
for its accreditation:
a) Proof of Filipino citizenship;
b
Proof of financial capacity;
c
SEC registration;
d
BIR Tax ldentification Number;
An Accident Quick Response System;
f) A training center, duly certified by the LTO and TESDA, to evaluate and determine
the competence of riders. The DICT may, as a requirement for renewal of accreditation,
consider the previous safety record of the TNC or OEPP as certified by the LTO during the
effectivity of its accreditation being applied for renewal.
SEC. 12, Operation of Motorcycle-For-Hire. - Motorcycles-for-hire may be allowed to operate
using digitat booking platforms or designated terminals. To maximize its operation,
motorcycles-for-hire shall not be bound by a single TNC or OEPP but shall be allowed to adopt
a multi-homing approach within a particular area of operation under the given franchise:
Provided, That a motorcycle-for-hire accredited under any TNC or OEPP platform may not be
allowed to operate as motorcycle-for-hire without using such platform.
The capacity, nature and character of goods that may be transported, as well as the
dimensions of the motorcycle bracket or luggage carrier of motorcycles-for-hire, shall be
determined by the LTFRB in accordance with the standards and specifications provided under
Section 7 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, 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, OEPPs or TNCs 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 and subject to the approval of the DOTr. The fare structure
shall take into consideration supply of and demand for motorcycle-for-hire services 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 TNCs or


OEPPs upon the operators or riders on the shipping or delivery fee. The LTFRB shall
periodically review the fare structure and parameters of determining the applicable fares,
subject to the approval ofthe DOTr. The booking system ofTNCS and OEPPS shall feature
a mechanism that enables clients to compare the transportation cost charged by each of the
available digital platforms.
ln the case of motorcycle-for-hire operating outside the digital platforms, the fare shall
be determined by the LTFRB after a public consultation with LGUs and the operators and
other stakeholders, with the approval of the DOTr.
SEC. 14. Processing of Personal lnformation. - Any collection, processing and storage of
personal information and sensitive personal information involved in the registration 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 ot 2012.'
SEC. 15. Liabilities for Death, lnjuies ot Damage to Property. - The operator and the TNC 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 TNC or
OEPP shall not exceed the amount of the insurance coverage of the operator.
SEC. 16. Accident Qurbk Response. - Each TNC 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 application options of the digital
platforms. \A/hen necessary, the TNC or OEPP shall advance any amount necessary for the
admission of such injured person or persons to a hospital or medical facility up to the maximum
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 and for the purpose of applying the penalties as well as other
sanctions under this Act. lt shall publish quarterly and annual reports of such data on its
website which shall be made accessible to the public.
Consistent with its mandate under Republic Act No. 7924 which created the Metropolitan
Manila Development Authority (MIUDA), the MMDA shall continue to exercise its traffic
enforcement functions within Metro Manila in furtherance of the objectives of this Act.
All violations related to the terms and conditions of a 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 TNCs or OEPPs from exercising the power to
impose sanctions such as suspension or blacklisting oftheir 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. - The following prohibited acts shall be penalized as follows:
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. ln addition,
the LTO shall impose a penalty of suspension or revocation of driver's license of an ening
rider commensurate to the gravity of the offense and frequency of commission. The table of


penalties shall be included in the rules and regulations to be issued pursuant to Sec. 21 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, othen /ise known as the "Consumer
Act of the Philippines" and Republic Act 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 TNCS 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. - To ensure a smooth transition in the implementation of this
Act, the authority and accreditation granted to existing TNCs, OEPPs and operators shall
continue to be effective until their expiration or six (6) months from the promulgation of the
rules and regulations to be issued pursuant to Sec. 21 of this Act, whichever comes later.
SEC. 21. lmplementing Rules and Regulations. - \Mthin ninety (90) days from the effectivity
of this Act, the DOTr shall, in coordination with the LTFRB, LTO, DTI-BPS, DICT, BlR, TESDA,
Department of Health, Department of the lnterior and Local Government, M[/DA, and
Philippine National Police-Highway Patrol Group, and in consultation with stakeholders,
promulgate rules and regulations for the effective implementation of this Act.
SEC. 22. Separability Clause. - lf 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 C/ause. - 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. Effectivw. - This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.
Approved,