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

EIGHTEENTH CONGRESS
First Regular Session

House BittNo,_°99

Introduced by DIWA Party-list Representative Hon. Michael Edgar Y. Aglipay

EXPLANATORY NOTE

To say that the traffic throughout the nation has gone from bad to worse is definitely
an understatement. It takes time away from our families and causes not only a multitude of
personal inconveniences but also losses in our country’s economy by way of lost investments
and potential income. A number of solutions have been tried out by the government but it
seems that the problem is just too overwhelming now to overcome.

There is one solution though that most people are in common agreement — that is, to
discourage private car ownership and use by elevating the level of our public transportation
system to world class level. One of the means by which most people use as their means of
transportation is our taxi system. Unfortunately, it has gained notoriety in the eyes of the
riding public because almost everyday in the news, we hear various incidents of passengers
complaining about abusive and discourteous taxi drivers who either pick their passengers
based on their personal convenience, or charge excessive fares without using their taximeters.
Worse, there are even some passengers who have been held up or mugged by their own
drivers. Such incidents have even led to the emergence of “alternative taxi” systems such as
Uber and Grab, which according to most passengers, provide better services compared to the
traditional taxis. However, such services will not be able to supply the rising need of the
riding public to an efficient, safe and accessible public transportation system. This bill, a re-
filing of House Bill No. 758 of DIWA Party-list filed during the 17* Congress, seeks to
overhaul and finally cure our infamous taxi system

Not only will this bill ease the traffic by discouraging private car ownership and use,
it will also serve the benefit of the riding public, as well as generate more revenue for our taxi



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

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 859

Introduced by DIWA Party-list Representative Hon. Michael Edgar Y. Aglipay

AN ACT PROVIDING FOR THE REGULATION OF ACTIVITIES OF TAXI
DRIVERS AND OPERATORS, AND FOR OTHER PURPOSES

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

SECTION 1. Short Ti
Practices Regulation Act

- This Act shall be known and cited as the "Taxi Transport

SECTION 2. Declaration of Policy. - The State values the dignity of every human
Person and guarantees full respect for human rights. To this end, it shall be the policy of the
State to establish a world class public transportation system by providing passenger safety
to the general public. To this end, the State shall establish transportation service standards
that shall address the basic rights of the passengers as may be provided by law.
Particularly, the State shall afford the public their established passenger rights and the
principles that will outline their expectations on their commute to ensure their safety, and
improve taxi service in the country.

SECTION 3. Definition of Terms. - For purposes of this Act, these terms are
defined as follows:

(a) “Taxi” shall include any motor vehicle-for-hire held out for public
transport, usually a car installed with a taximeter, which transports a passenger or
passengers, with no fixed route within a specified area.

(6) “Taxi operators and companies" shall refer to any individual, partnership,
cooperative and corporate entities engaged in the business of operating and
‘maintaining taxi units.

(©) "Taximeter" shall be understood as a device or instrument found inside a
taxi unit that shows the fare due.

(d) “Global Positioning System (GPS)” ~ a space-based satellite navigation

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to:

system that provides location and time information in all weather conditions,
anywhere on or near the Earth where there is an unobstructed line of sight to four or
more GPS satellites.
SECTION 4. Rights of Taxi Passengers. — Every Taxi Passenger shall have the right
(a) A licensed driver who is properly dressed, as provided in Section 7 of this
Act, as well as one who is courteous and is not under the influence of alcohol or
illegal drugs;
(b) A clean and safe taxi;

(©) Be picked up and transported to the passenger's stated destination subject
to applicable traffic regulations;

(d) A fare meter conspicuously displayed in front of the taxi which is duly
calibrated and sealed by the Land Transportation Franchising and Regulatory Board
(LTERB);

(©) Travel with an assistance dog or portable mobility aid;

(f) Direct the route, or expect the most economical route;

(g) View the metered fare and to receive a receipt;

(h) Refuuse multiple hiring;

(i). Have the air conditioning on or off;

(Gj) Have the lighting equipment on or off;

(Kk) See the driver's identification card, which shall state clearly the driver's
name and the taxi operator's name, place of business, and contract numbers, and
shall contain a picture of the driver.

(1) Sce the plate number of the taxi and emergency numbers for assistance by
the Philippine National Police prominently displayed on the side doors and other
conspicuous places within the taxi;

(m)A quiet atmosphere, upon request;

(n) Pay the rate exactly as posted in the meter, subject to other government
sanctioned fees;

(0) Receive an exact change;
(p) Embark and disembark at any point, subject to existing traffic rules and

regulations; and

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(q) A substitute taxi, or an assistance to procure one, in case of mechanical or
engine trouble that hinders the continuation of carriage, together with the waiver of
the payment of the running metered fare.

SECTION 5. Taxi Passengers’ Rights Notification. - The taxi passengers’ rights as
enumerated in Section 4 of this Act shall be prominently displayed inside the taxi cab. Such
notification shall also contain a brief description of the procedure on how to file a complaint
for violation of any of the rights enumerated, as well as, the necessary contact information
provided by the LTFRB to handle such complaints.

SECTION 6. Issuance of Receipts. - All taxi drivers are required to furnish their
passengers, upon arrival at their destination with a receipt detailing the following
information: name, address and telephone number of the taxi company and/or operator of the
vehicle, the name of the driver, the distance traveled and the corresponding fare. The driver is
mandated to keep a copy of every issued receipt and should submit these at the end of his
shift to the company for record-keeping purposes.

SECTION 7. Uniform for Taxi Drivers. -All taxi operators shall require their
drivers to wear a company-prescribed uniform while driving, and with readable name plates
on right breast sides, and long pants. All drivers are likewise required to wear closed shoes
while driving.

SECTION 8. Taxi Equipped with a liquefied Petroleum Gas (LPG) or
Compressed Natural Gas (CNG) Fuel System. - A taxi equipped with a liquefied
petroleum gas (LPG) or compressed natural gas (CNG) fuel system must display a current
Alternative Fuel Inspection Certificate to be issued by the Land Transportation Office (LTO),
and the fuel system must be maintained in a safe condition. An identification label must be
fitted to the vehicle that is equipped with an LPG or CNG fuel system, positioned in a clearly
visible location as close as practicable to the front and rear registration plates.

SECTION 9. Automatic Door Locks. - A door in a taxi must not lock automatically
when it is closed. Automatically operating central locking devices and speed-sensitive door
locks must be permanently deactivated or removed.

SECTION 10. Mandatory Installation of GPS - All taxi owners/operators, whether
under an existing franchise or upon application of a new one, are hereby required to install a
GPS devise in every taxi unit he/she presently owns/operates or will own/operate in the
future. Owners/ Operators of taxi cabs under an existing franchise are given two (2) months
from promulgation of this Act to comply with the requirement of installing GPS device in
their taxi cabs. The LTFRB shall conduct regular ocular inspections after the lapse of two (2)
months from the promulgation of this Act to ensure that all licensed taxi owners/operators
have complied with the requirements of this Act. Application for a franchise to operate a taxi
business by a person or persons who wish to own/operate taxi cabs as public utility vehicles,
shall not be granted until and unless the owner or operator, upon the inspection and
assessment of the LTO, is ready and/or equipped to install a GPS devise for every taxi cab it
‘owns/ will operate. Applicants of a new franchise shall obtain a certification from LTFRB
stating that it is equipped with a GPS Devise, and the said certification shall be attached or
incorporated to the other pertinent documents necessary for the application process of a
franchise to operate a taxi business. Applications for franchise already filed before the

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LTERB but pending approval thereof upon the promulgation of this Act shall be deferred
until and unless applicants comply with the additional requirement as provided under this Act
and thereby acquire and/ or equip their business with necessary GPS devise. An additional
requirement of obtaining Certification from the LTFRB as in this Section shall be submitted
by the applicants whose franchise applications are pending. Only upon the attainment and
submission of the said certification, along with compliance with other requirements as
required by existing laws, shall the application be finally granted or approved.

SECTION 11. Unannounced Inspections. - Authorized personnel of the LTFRB
may conduct unannounced or surprised inspections of any taxi business to ensure compliance
with this Act.

SECTION 12. - Prohibited Practices. - It shall be unlawful for any taxi driver and
operator to engage in the following practices:

(a) Asking passengers their intended destination without allowing them inside
the vehicle fi

(b) Refusing to accept and convey passengers to their intended destination for
any reason(s). However, refusal to convey passengers on the basis any of the
following grounds shall not be deemed unlawful:

(1) mechanical failure;

2) low fuel;

(3) carbarn time, or the time a taxi driver is expected to return his vehicle
to the home garage of the operator, either to cease operation for the day or to
change shift with another driver;

(4) potential threats against the person or property of the driver as
determined from a certain notoriety of the place or palpable danger signs such
as isolated and dark areas;

(5) excess of cargo or passenger limit;

(©) conveyance of hazardous or dangerous cargoes and materials; or

(7) passenger's refusal to use the seatbelt or any other lawful obligation
(©) Charging a specific sum of money as fare, or the practice of imposing a

fixed amount to be paid by the passengers upon arrival at their intended destination

without using their taximeters;

(d) Asking passengers to pay an amount over and above the fare reflected
in the taximeter;

(©) Operating with a set route or in a specific area in violation of their
franchise agreement and refusing to convey passengers beyond that route or area;

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(© Not employing a taximeter inside their vehicles or utilizing tampered
meters;

(g) Violating their respective franchise agreements, rules and guidelines set by
the LTFRB and the Department of Transportation and Communication governing
their operations;

(h) Failure or refusal to be in prescribed uniform;

(i) Discourtesy or arrogance towards passengers;

(i) Failure or refusal to isse seatbelts and follow other lawful obligations;

(k) Failure or refusal to issue receipts;

(1) Installing advertising signs without a permit;

(m) Using unauthorized commercial or business name or allowing another
to use his commercial or business name;

(n) Engaging in "kabit system" or the multiple use of taxi units under one
franchise.

SECTION 13. Penalties. - The following penalties shall be imposed on taxi

companies, operators and drivers found violating any of the provisions of this Act:

(a) First (1st) Offense - suspension of the license of the erring driver for a
period of seven (7) days and a fine amounting to two thousand pesos (P2,000.00)
imposed upon the taxi company or operator;

(b) Second (2nd) Offense - suspension of the license of the erring driver for a
period of one (1) month, if it is the same driver mentioned in paragraph (a); otherwise,
it will be considered only as a first offense with respect to that driver. In either case,
the operating franchise shall be suspended for a period of six (6) months and a fine of
ten thousand pesos (P10,000.00) imposed upon the taxi company/operator for the
second violation;

(©) Third (rd) Offense - revocation of the driver's license and franchise,
including a fine of fifty thousand pesos (P50,000.00) shall be imposed upon the erring
taxi company or operator.

‘The LTFRB shall be vested with the authority to act on all verified complaints by the

‘commuting public of violations of the provisions of this Act within a period of thirty (30)
calendar days from receipt of such complaints with due notice and hearing.

SECTION 14. Special Fund /or Education Seminars. - Fines paid by the offending

parties for violations of this Act shall accrue to a special fund to be held by the LTFRB for
the benefit of taxi drivers and operators. The fund shall be disbursed exclusively for the
educational seminars of erring taxi drivers and operators. Attendance by the concerned

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drivers and operators in such seminars shal! be mandatory, failure of which shall constitute a
violation of this Act punishable under Section 13 hereof.

SECTION 15. Summary Procedure in Investigation and Hearing. - The
investigation or hearing of any complaint under this Act shall be summary in nature and
without regard to technicalities of law or procedure, all in the interest of due process,
provided that the operator shall be duly notified of the same.

SECTION 16. Independence of Action. - The liability under this Act shall be
independent from, and be without prejudice to, any liability under other laws.

SECTION 17. Nationwide Pul Information Campaign. - The LTFRB, in
coordination with the Philippine Information Agency, the Department of Education, and
private agencies and organizations, shall undertake a nationwide information, education and
communication campaign for the attainment of the objectives of this Act. The LTFRB, in
coordination with the local government units, shall likewise utilize the services of
citizen groups and community organizations for the promotion of public safety awareness in
observance of this Act.

SECTION 18. Implementing Rules and Regulations. - The LTFRB, in consultation
with the LTO, shall issue the necessary rules and regulations to implement the provisions of
this Act within 60 days from the effectivity of this Act.

SECTION 19. Appropriations. - The amount necessary for the initial
implementation of this Act shall be charged against the appropriations of the LTFRB under
the current General Appropriations Act. Thereafter, such sums as may be necessary for its
full implementation shall be included in the GAA as a distinct and separate item. The amount
of fines collected in the enforcement of this Act shall be used exclusively in the furtherance
of its effective implementation including information disseminations, education and
awareness campaigns, as provided under Section 17.

SECTION 20. Repealing Clause. - All acts, decrees, executive orders, rules and
regulations and other issuances or parts thereof inconsistent with the provisions of this Act
are hereby repealed, modified or amended.

SECTION 21. Separability Clause. - If for any reason, any portion or provision of
this Act be declared invalid or unconstitutional, other parts or provisions hereof which are not
affected thereby shall continue to be in full force and effect.

SECTION 22. Effectivity. - This Act shall take effect fifteen (15) days after its
publication either in the Official Gazette or in 2 newspapers of general circulation.

Approved,

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