\
Republic of the Philippines 4
HOUSE OF REPRESENTATIVES S0.4UH 2

Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No._276.

Introduced by Representatives Bryan B. Revilla, Lani Mercado-Revilla, and Ramon
Jolo B. Revilla Il

AN ACT
REGULATING THE OPERATION OF MOTORCYCLES-FOR-HIRE AND
PROVIDING PENALTIES FOR VIOLATION THEREOF

Since 2019, motorcycle taxis have been operating under a pilot study. Their service
to the Filipinos is indubitable, especially during the pandemic. When everyone was
required to stay indoors for many years, riders and their livelihood have been the
lifeline of the Filipino people, delivering necessary goods and bringing them to their
destinations safely.

Six years should have been sufficient for the government to study the dynamics of
the operations of motorcycle taxis. It is high time for Congress to approve a measure
that will set the regulatory framework for motorcycle taxis. This bill provides precisely
for such a framework where their operations — from registration to accreditation to
insurance — are addressed.

This measure aims to institutionalize a legal environment for motorcycle taxis to ply
their routes and make a living while keeping them and their clients safe.

In view of the foregoing, the expedient passage of this bill, which was previously
approved on third and final reading by the House of Representatives, is earnestly
sought.

RYAN B. REVILLA REP. I MERCADO-REVILLA
Refresentative, AGIMAT Partylist Représé€ntative, 2" District of Cavite

REP. om kh. B. REVILLA lil

Representative, 1* District of Cavite
Republic of the Philippines



HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

276

HOUSE BILL NO.

Introduced by Representatives Bryan B. Revilla, Lani Mercado-Revilla, and Ramon
Jolo B. Revilla tll

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 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

2


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;

9) 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.

e)

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 (DOTr), upon the recommendation of the Department
of Trade and Industry (DTI), Department of Environment and Natural Resources, 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.

3


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 motorcycies-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 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

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.

b)

The LTFRB shall provide uniform guidelines as to the standards of operation of
motorcycles-for-hire in consultation with the LGUs and stakeholders.

c) 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;

4


d) Insurance coverage for the 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

e) 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 a 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 be 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 the LTFRB. The DTI, LTFRB and Department of Information and
Gommunications 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) Anestablished Road Crash Quick Response System; and

e) Capability to evaluate and determine the competence of riders through an
established training center, duly certified by the LTO and Technical Education
and Skills Development 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 the digital platforms, or on designated areas of operation. To
maximize their 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 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 in areas with operating
MTPP or OEPP outside the digital platform shall be considered colorum and,
therefore, illegal.

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 (RA) 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 Data. — 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 RA
No. 10173, otherwise known as the “Data Privacy Act of 2012.”

6


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 and OEPPs shall be responsible for the insurance coverage of all its
accredited riders. The MTPP or OEPP shall likewise be responsible for the
procurement of Personal Passenger Accident Insurance 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 goverment
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 RA 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 the 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.

©)

The penal provisions of RA No. 7394, otherwise known as the “Consumer Act
of the Philippines,” RA No. 11967 or the “Intemet 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 _admi tules 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,