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

Nineteenth Congress
First Regular Session

HOUSE BILL No. 4894

Introduced by Representative DAN S. FERNANDEZ

EXPLANATORY NOTE

Tricycles have become a common mode of transportation in the
country especially in places where larger vehicles are unavailable.
Whether in rural or urban areas, many commuters prefer the use of
tricycles because of their availability, high accessibility, affordability,
comfort and convenience. In view also of the demand for small transport
services, tricycles have proliferated due to the relatively small capital to
start the business. According to the Philippine Statistics Authority (PSA),
in 2012 there were 658,675 tricycle units and this accounted for 67.9
percent of the total vehicle for hire population.

The problem of “colorum” (unregistered) tricycles has been with us
for many years, even decades now, so much so that way back in 1985,
then President Ferdinand Marcos issued and/or signed Letter of
Instruction No. 1482 directing the legalization of colorum motorized
tricycles. This is a sad reality considering that Filipino workers engaged
in this type of industry labor under harsh, unprotected and low-quality job
conditions. Like the rest of the informal economy, colorum tricycles
contribute to the national economy, especially in times of crises when
they serve as catch basin for those displaced in the formal transport
sector.

This bill aims to address this concern which is really a social
justice issue. By opening up the pathway for the legalization of colorum
tricycles and providing them with alternative means of livelihood, this
measure seeks to improve the lot of the operators and drivers of these
colorum units. Inasmuch as the pandemic conditions have literally hurtled
us into the digital future, this bill enables the owners or operators of
colorum tricycle units to operate on-demand transportation (much like
TNVS Grab and Uber) and delivery (similar to Lalamove, Grab and Food


Panda deliveries) services using internet-based applications, This is
deemed to be a creative solution using technological innovations in order
to address urgent social concerns.

For the foregoing reasons, the immediate approval is earnestly
recommended.

HON. DAN S. FERNANDEZ,
Lone District of Santa Rosa


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

Nineteenth Congress
First Regular Session

4694

Introduced by Representative DAN S. FERNANDEZ

AN ACT
MANDATING THE LEGALIZATION OF “COLORUM”
TRICYCLES, AUTHORIZING THEIR) OWNERS OR
OPERATORS TO ENGAGE IN ONLINE-ENABLED
TRANSPORTATION AND/OR DELIVERY SERVICES WITH
THEIR UNITS AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. — This Act shall be known as the
“Tricycle Act of 2022”.

SEC. 2. Declaration of Policies. — It is the policy of the State:

(a) To recognize the role of tricycles as an important mode of
public transport in both rural and urban areas by authorizing the
legalization of “colorum” units to hasten their integration into the formal

economy;

(b) To promote the interests of the operators and drivers of colorum
tricycle units by providing them with an alternative means of livelihood,
namely, the option to operate on-demand transportation and delivery

services using internet-based application; and


(c) To develop the local economy through maximization of the
potentials and contributions of the entire tricycle sector.

SEC. 3. Scope. - The legalization program shall cover all illegally
operated or “colorum” tricycles operating as of June 30, 2022, and shall
be effective for a period of six (6) months starting July 1, 2022.

SEC. 4. Definition of Te
words or phrases is used in this Act, they shall be understood to mean as

rms, - Whenever any of the following

follows:

(a). Colorum~ is a private vehicle operated for public utility
purposes without the benefit of a valid and existing special permit,
provisional authority or franchise.

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

(c). Tricycle — is a motor vehicle propelled other than by muscular
power, 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.

(@). Tricycle Operators and Drivers’ Association (or “TODA”) ~
the organization of tricycle operators and drivers in a given local
government unit.

SEC. 5. Authority to Operate On-Demand Transportation And

Delivery Services Using Internet-Based Application. — Upon compliance
with the legal requirements under this Act, all colorum tricycles are
hereby authorized to operate, without a fixed route but within a limited
zone, pre-arranged transportation or delivery services for compensation
using an internet-based technology application or digital platform

technology to connect tricycle drivers and customers.


For this purpose, owners or operators of colorum tricycle units
whose operations are legalized under this Act may form or organize their
own Tricycle Operators and Drivers’ Association (TODA) which shall
serve as the hub for the implementation of intemet-based technology
application or digital platform technology to connect tricycle drivers and

customers.

Operators of tricycles-for-hire shall employ only drivers duly
licensed by the Land Transportation Office (LTO).

SEC. 6. Fares and Charges. — Subject to approval by the
appropriate regulatory agencies, online-enabled transportation and
delivery services shall be allowed, upon petition, to impose reasonable
fares and charges with sufficient mark-up to cover the cost of insurance,
taxes, other fees and charges, and, insofar as delivery service units are
concerned, the cost of delivery and handling. Under no circumstances,

however, shall these service units be allowed to engage in surge pricing.

SEC. 7. Routes, Zones and Limits of Operation. - All coloram
tricycles legalized under this Act are hereby authorized to operate,
without a fixed route but within a limited zone. The local government
units (LGUs) having jurisdiction over the city or municipality where the
tricycle is registered shall determine the limits of the zone of operation of
the said units which must be within the boundaries of the city or
municipality. In cases where the routes taken by tricycle units would
traverse more than one city or municipality, the operators of the tricycle
unit shall secure a Motorized Tricycle Operators Permit (MTOP) from
each of the cities or municipalities having jurisdiction over the areas
covered by the zone. Transfer to another zone may be permitted upon

application,


Generally, tricycles are authorized to operate on any road within
the city or municipality. However, they are prohibited to operate along
national highways or on any road which allows a maximum speed greater
than forty (40) kilometers per hour, especially on well-paved, high speed
roads, unless special tricycles/bicycles lanes on the shoulder are provided,

except to cross.

SEC. 8. Duties and Responsibilities. - The following offices are to
undertake the following functions:

1, Sangguniang Panlungsod/Bayan through the Mayor shall:

a. Conduct an inventory of all existing and actually operating
tricycle units in the city/municipality.

b. Receive, process and evaluate all applications filed under this
program, collect the filing fee in the amount of One Thousand Pesos
(Php1000.00) per unit.

c. Issue the corresponding MTOP upon presentation by the
applicant of complete and satisfactory documentary requirements.

d. Monitor the progress of the program and cause the apprehension
of units operated without appropriate MTOP in coordination with the
Philippine National Police.

2. Philippine National Police (PNP) shall —

a. Coordinate and support all the activities of all city/municipal
governments to ensure the attainment of the purpose of this Act.

b. Conduct the actual physical inspection of the tricycle with
concentration on the body configuration and fitness to operate as a public
utility vehicle.

c. Prepare and sign Motor Vehicle Inspection Report (MVIR) for
inclusion in the application form for legalization.

3. Department of the Interior and Local Government shall —

a. Instruct and enjoin all Sangguniang Panlungsod/Bayan through
the Mayor to undertake the legalization Program as provided in this Act


b. Provide the required support and resources to ensure the total
and successful implementation and realization of the objectives of this
Program.

4. Department of Transportation shall —

a. Provide necessary assistance in terms of policy realignment and
required resources to implement the Program.

SEC. 9. Who May Apply. - All owners of colorum tricycles may
apply under the legalization program, provided they possess the following

qualifications:

1. The applicant is a Filipino citizen;

2. The applicant owns the tricycle.

SEC. 10. Venue of Application. - All applications filed under this
program shall be submitted to the concerned Sangguniang
Panlungsod/Bayan where the unit is presently operated, or where the

applicant/owner is a resident.

SEC. 11. Documentation. - Any person applying under the
legalization program shall submit the following documents to the

Sangguniang Panlungsod/Bayan through the Mayor.
1. Documents attesting to the applicant's citizenship

2. Certification of the Barangay Captain:

a, that applicant is a bona fide resident of the Barangay within the
City /Municipality; or

b. that the unit applied for is actually operating in the
City/Municipality.

3. Motor Vehicle Inspection Report; (MVIR).


SEC, 12. Application / Registration Fee. — The registration fee for
the application for the issuance of an MTOP shall not exceed One
Thousand Pesos (Php 1,000.00) and it shall be valid for a period of three
(3) years from the date of issuance. The said fee shall cover the cost of
the issuance of the license to operate, the filing fee, franchise fee,
inspection fee, adjustment fee, amendment, regulatory, and all other fees.
No other fees shall be exacted from the tricycle operators other than the

registration fee mentioned herein.

SEC, 13. Amnesty. - All unpaid fees and penalties accruing against
the tricycles are hereby condoned except the current registration fee shall
be paid and collected in full regardless of the remaining portion of the

registration year and miscellaneous fees,

SEC, 14. Compliance with National Government Policies
Governing Online-Enabled Transportation and Delivery Services. ~ In
the regulation of tricycle units which have been legalized under this Act,
the local government units must ensure the faithful compliance of the
rules and regulations issued by the respective national government
agencies in charge of regulating businesses or enterprises engaged in

online-enabled transportation and delivery services.

SEC. 15. Appropriations. — An initial appropriation of ONE
HUNDRED MILLION (Php 100,000,000.00) is hereby appropriated for
this Act. Thereafter, the amount necessary for the effective
implementation thereof shall be included in the General Appropriations

Act.

SEC. 16. Implementing Rules and Regulations. — Within six (6)
months following the effectivity of this Act, the necessary rules and


regulations for the effective implementation thereof shall issue as

follows:

(a) For tricycle owners who intend to operate online-enabled
transportation service with their units — IRR to be issued by the Land
Transportation Franchising and Regulatory Board (LTFRB)

(b) For tricycle owners who intend to operate online-enabled
delivery service with their units — IRR to be jointly issued by the
Department of Agriculture (DA), the Department of Health (DOH), the
Bangko Sentral ng Pilipinas (BSP) and the Department of Trade and
Industry (DTI), with respect to the following:

[1] For fresh, primary- and secondary processed agricultural and
fishery products — DA;

[2] For food, drugs, cosmetics, devices and hazardous substances —
DOH;

{3] For financial products and services offered by financial
institutions under BSP supervision - BSP; and

[4] For other consumer products not specified above - DTI.

SEC. 17. Repealing Clause. ~ All laws, rules and regulations which
are contrary to or inconsistent with this Act are hereby repealed, amended

or modified accordingly.

SEC. 18. Separability Clause. ~ If any provision ot part hereof is
held invalid or unconstitutional, the remainder of the law or the provision

not otherwise affected shall remain valid and subsisting,
SEC. 19. Effectivity. — This Act shall take effect fifteen (15) days

after its publication in the Official Gazette or in any newspaper of general

circulation.

Approved,