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

EIGHTEENTH CONGRESS
First Regular Session

2618
HOUSE BILL NO. __

Introduced by REP. ANTONIO T. ALBANO and
REP. RODOLFO B. ALBANO

EXPLANATORY NOTE

Motorcycles provide an alternative mode of transportation
especially in rural areas that are difficult to traverse because of their
terrain and remote locations, and in urban areas where heavy traffic
congestion unduly prolongs travel time and hinder the mobility of
commuters, goods and services.

In 2016, motorcycles were already close to 50% of all registered
vehicles in the country. In Metro Manila alone, it is estimated that
between 120,000 to 250,000 rides daily are through unregulated
motorcycle-for-hire services and that there are at least 134 motorcycle-
for-hire terminal stations.

Despite hazards, motorcycles are used widely for private and
public transport given their affordability and their ability to navigate


difficult to traverse terrains and heavy traffic. They provide transport
convenience to commuters who prefer easier access, cheaper fares and
swifter travel from point to point even in comparison with currently
available Transport Network Vehicle Services (TNVS) such as Grab and
Uber.

Across many transport systems in the world, motorcycles fill a
critical gap no other mode can fulfill: as a feeder service, as an end-to-
end transport, and as the only service capable of traversing difficult
routes. Aside from the benefits to commuters, motorcycles-for-hire
employ large numbers of unskilled workers, increase incomes by
providing opportunities to earn more additional income, and create a new
“industry” that can trigger other related enterprises from the
manufacture of parts and various safety devices to even the design and
marketing of applicable digital or electronic transport communication

applications or platforms.

Given the current condition of our transport systems, and the need
to fill gaps in transport services nationwide, allowing and regulating
(principally to ensure safety of commuters) the use of motorcycles as
public utility vehicles are steps in the right direction toward meeting the
growing demand for cheaper, more accessible, safer and swifter means of
transportation for the Filipino public as well as in creating new
opportunities for employment and additional income, and generating new

economic enterprises with less capital for small entrepreneurs.

The wisdom and practical benefits of allowing and regulating the
use of motorcycles as public utility vehicles was recognized in the 17th
Congress through various measures filed for the purpose, and through
the committee approval thereafter of a consolidation of measures
thereon.


This bill improves on previous measures to further rationalize the

use of motorcycles as public utility vehicles.

Given these considerations, approval of this bill is strongly

recommended.

C AG CLLE-

REP. ANTONIO T. ALBANO

REP. RODOLFO B. ALBANO


Nana

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

EIGHTEENTH CONGRESS
First Regular Session

2618
HOUSE BILL NO.

Introduced by REP. ANTONIO T. ALBANO and
REP. RODOLFO B. ALBANO

AN ACT
ALLOWING AND REGULATING THE USE OF MOTORCYCLES
AS PUBLIC UTILITY VEHICLES,
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 4136,
OTHERWISE KNOWN AS THE LAND TRANSPORTATION
AND TRAFFIC CODE, AND FOR OTHER PURPOSES

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

SECTION 1. Title.- This Act shall be known as the “Motorcycles-for-
Hire Act”.

SECTION 2. Declaration of Policy. — It is the policy of the State to
promote the general welfare and ensure public safety. Toward these
ends, the use of motorcycles as public utility vehicles to provide an
alternative mode of safe, accessible, affordable and efficient public

transportation is hereby allowed and regulated.


SECTION 3. Motorcycles-for-Hire. ~ Section 3 of Republic Act. No.

N

4136 is hereby amended by adding a new paragraph that shall read as
follows:

w

XXX

“(N) MOTORCYCLES-FOR-HIRE - ANY TWO-WHEELED MOTOR
VEHICLE THAT MAY BE REGISTERED WITH THE LAND
TRANSPORTATION OFFICE AS FOR HIRE AND MAY BE USED
AS A COMMERCIAL VEHICLE TO TRANSPORT PASSENGERS
AND GOODS: PROVIDED, THAT, FOR TRANSPORTING
PASSENGERS, THE MOTORCYCLE SHALL HAVE A MINIMUM
ENGINE DISPLACEMENT OF 125 CUBIC CENTIMETERS AND A
BACKBONE TYPE BUILT.”

RES ocamraue

12 SECTION 4. Registration Classification. ~ Section 7 (d) of Republic
13 Act No. 4136 is hereby amended to read as follows:

14 “Section 7. Registration Classification. - Every motor vehicle shall
15 be registered under one of the following described classifications:
16 (a) xxx

17 (b) xxx

18 (c) xxx

19 (a) Public utility automobiles; public utility trucks; (f) taxis
20 and auto-calesas; (g) garbage automobiles; (h) garage
21 trucks; (i) hire trucks; [and] ()) trucks owned by
22 contractors and customs brokers and customs agents|,] ;
23 AND (K) MOTORCYCLES-FOR-HIRE. Application for
24 registration under these classifications shall be
25 accompanied by a certificate of public convenience or a
26 special permit issued by the [Public Service Commission]
27 LAND TRANSPORTATION FRANCHISING AND

28 REGULATORY BOARD, and motor vehicles registered


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under these classifications shall be subject to the Public
Service Law, rules and regulations as well as the
provisions of this Act.

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SECTION 5. Roadworthiness of Motorcycles-for-Hire. - The Land
Transportation Office (LTO) shall ensure the roadworthiness of
motorcycles-for-hire before registration or renewal of registration. To
further ensure safety, no modifications of any kind or form shall be made
on motorcycles-for-hire, except for the installation, based on safe
engineering design specifications, of motorcycle luggage carriers,
saddlebags, step boards or foot pegs, and appropriate speed limiter, and
monitoring devices.

SECTION 6. Issuance of Driver's License, Conduct of Safety
Trainings, and Compliance with Safety Rules. - The LTO shall promulgate
the necessary requirements and guidelines for the issuance of licenses to
motorcycle-for-hire drivers-applicants, including guidelines on the
conduct and the content of the theoretical and practical examinations
appropriate for such applicants. The LTO shall also ensure the conduct
of continuing safety trainings for licensed drivers of motorcycles-for-hire,
Provided, That licensed drivers shall attend at least one (1) safety
training every year. It shall also ensure compliance with safety rules
and regulations for the protection of the passengers, drivers and the
public.

SECTION 7. Fare Setting and Ride-Hailing - The Land
Transportation Franchising and Regulatory Board (LTFRB) shall
determine, prescribe, approve and periodically review and adjust
reasonable fares, rates and other related charges for the operation of

motorcycles-for-hire after due consultation with affected stakeholders.


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It shall also allow motorcycles-for-hire to choose and use online
ride-hailing or pre-arranged transportation platforms which must be
accredited by and registered with the Department of Information and
Communication Technology (DICT) or any other proper agency or
instrumentality thereof, Provided, That, the said companies providing or
operating these platforms shall comply with this Act and other
regulations on motorcycles-for-hire, including fare-setting; and Provided,
finally, That the use of online modes and platforms of ride-hailing shall
not exclude the use of other modes of ride-hailing such as text messaging

to ensure commuters affordable and easy access to motorcycles-for-hire.

SECTION 8. Motorcyle-for-Hire Transport System Facilities and
Services — The Department of Transportation (DOTr) and the LTFRB shall
establish facilities and services for an efficient motorcycle-for-hire
transport system that shall include, among others, identification of
prescribed routes, designation of lanes in highways dedicated for
motorcycles-for-hire, free public parking spaces, strategically located
terminals and adjunct security and service facilities for motorcycles-for-
hire, Provided, That in prescribing routes, the DOTr and the LTFRB shall
give priority to higher-capacity vehicles or mass transit systems in
accordance with route rationalization studies; and Provided, finally, That
motorcycles-for-hire may be allowed to operate for a limited period with
a limited number of units in specific routes or local areas only as may be
determined by the DOTr and the LTFRB in coordination with concerned
local government units.

SECTION 9. Penalties. The operation of motorcycles-for-hire in
violation of this Act shall be penalized in accordance with prescribed
fines and penalties for similar or equivalent violations under existing

laws and agency regulations, Provided, That the officers or directors of


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companies providing online ride-hailing or pre-arranged transportation
platforms for motorcycles-for-hire without a valid franchise shall be
solidarity liable with the latter and shall be penalized accordingly.

SECTION 10. Insurance Coverage. - The owner of motorcycles-for-
hire shall, upon registration, procure the necessary insurance covering

the motorcycle-for-hire driver, the rider and the third party.

SECTION 11. - Implementing Rules and Regulations. - The DOTr,
LTO, and LTFRB, in collaboration with the Metro Manila Development
Authority (MMDA), Department of Interior and Local Governments
(DILG), Philippine National Police-Highway Patrol Group (PNP-HPG),
Department of Health and other stakeholders shall promulgate the
necessary implementing rules and regulations (IRR) within sixty (60)
days from the day this Act takes effect.

The IRR shall include, among others, prescribed limits on the
number of riders, the weight or load capacity that can be carried as
certified safe by manufacturers and as indicated on the motorcycles, the
applicable speed limits, the road safety and traffic laws and rules that
must be complied with, the necessary insurance policy covering the
driver, rider and third parties including extent of liabilities, designation
of free parking spaces, terminals and lanes and such other requirements

to ensure the safety, security and heath of the driver, the rider and the
public.

SECTION 12. Separability Clause. - If any provision of this Act is
declared invalid, other provisions not so declared shall remain in force

and effect.


SECTION 13. Repealing Clause. ~ Any law, decree, order, rule or
regulation contrary to or inconsistent with the provisions of this Act is
hereby repealed, modified or amended accordingly.

SECTION 14. Effectivity - This Act shall take effect fifteen (15) days
after its publication in the Official Gazette or in at least two (2)

newspapers of general circulation.

Approved.