NINETEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES — )
First Regular Session )

HOUSE OF REPRESENTATIVES,

House Bill No. 592

Introduced by Representative Christian Tell A. Yap

EXPLANATORY NOTE

Motorized tricycle is one of the most popular and ubiquitous means of transport in small towns

and cities in the rural areas. In 2021, an estimated 4 million tricycles are registered in the Philippines

Laws governing tricycles are only prescribed in Letter of Instruction No. 1482 which legalized
colorum motorized tricycles in 1985 and the Local Government Code of 1991 which decentralized the
regulatory powers from the national government and lefi the rules and regulation of tricycles primarily

to the judgment and discretion of local government units (LGUs).

However, issues regarding collection of illegal fees, illegal sale of tricycle franchises, issuances
of multiple permits, tough working conditions of tricycle drivers and poor maintenance of tricycles
have continued to rise. In this state, a uniform set of rules governing tricycle regulation and the granting

of permits and franchises is pursued through the enactment of this bill.

The bill seeks to mandate a uniform rule which provides cities and municipalities the power to
regulate the operation of tricycles and grant permits subject to the guidelines prescribed by the
Department of Transportation (DOTr), Land Transportation Office (LTO), and the Land
Transportation Franchising and Regulatory Board (LTFRB). Known as the Magna Carta for Tricycle
Drivers, this bill also seeks to provide and extend affordable insurance, social security and health care

coverage to the tricycle sector.

In view of the foregoing reasons, the approval of the bill is ren



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NINETEENTH CONG:
OF THY REPUBLIC OF TRE PHILIPPINES
First Regular 8

HOUSE OF REPRESENTATIVES
House Bilf No, 992

Introduced by Repressutative Cheisiiau Tell A. Vaz

AN ACT
PROVIDING FOR A MAGNA CARTA FOX TRICYCLE DRIVERS AND OPERATORS,
INSTITUTIONALIZING MECHANISMS. FOR 1S IMPLEMENTATION,
RUGULATION 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 “Magna Carta for Tricycle Drivers

and Operators.”

Sec. 2, Decluration of Policy. — Itis the policy of the State:

a) To promote and improve the total well-being of the members of the tricycle sector
particularly the marginalized low-level income earners by providing them with adequate and
timely social, economic, and legal services, as well as with a mechanism that protects their rights
and promotes benefits that ensure their dignified existence and economic advancement;

b) To recognize, promote, protect, and fulfill the rights of every member of the tricycle
sector, particularly the tricycle drivers and operators, whose rights include but are not limited to
the right to self-organization, the right to decent work, just and humane working conditions, access
to social protection, and the right to represent their organizations in a continuing process of
consultation and dialogue towards maximizing the provision of a comprehensive package of
reforms, interventions, and services in accordance with their articulated needs and interests;

©) To give the highest priority to the enactment of measures that protect and enhance the
rights of all people to human dignity, reduce social, economic, and political inequalities and

remove cultural inequalities by diffusing wealth and political power for the common good and to


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provide environments at the national and local levels that enable all workers to fully develop into
productive and responsible citizens:

d) To recognize the roles and contributions of members of the tricycle sector, make them

ing thei

ible in the national and local sti

ics, and develop the local economy by maximi
potential:

€) To promote gender equity and equality through the elimination of gender stereotypes
attached to this sector, redefining the sector by inclusivity in that tricycle drivers do not only

consist of males but also females, and protecting the women workers against gender-based

iscrimination, exploitation, violence, and all other forms of abuse;

£) To protect vulnerable groups in the tricycle sector such as the elderly and differently-
abled persons from safety issues, discrimination, and harassment,
g) To eliminate child labor in the tricycle sector through effective enforcement of laws

against child labor and the creation of more quality jobs for adults, and

h) To promote the safety and security of citizens especially those that are vulnerable to
accidents and mishaps, to safeguard the sanctity of life and to ensure the safety of every human

being in its territories

Sec. 3. Framework and Principles. ~ \.ocal Government Units (LGUs) shall pursue and
implement a comprehensive, rights-based, participatory and gender responsive framework for
members of the tricycle sector that includes

a) Putting in place policies and programs that will, as a first step, bring members of the
tricycle sector to the economic and social mainstream,

b) Pursuing structural reforms in all relevant levels of LGUs by creating committees,
special offices for development and protection of workers in the tricycle sector and supporting
their representational rights through their organizations,

c) Extending coverage of accessible and affordable social security and health care benefits
to workers in the tricycle sector, and

d) Exacting responsibility on the part of the tricycle sector members, particularly to
committing abuses to the riding public, to stakeholders in the sector, and to the environment:
Provided, That the State shall recognize their rights and put in place responsive, transparent and

accountable mechanisms to ensure the protection, promotion and realization of those rights


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See. 4. Definitions, — As used in this Act

a) Colorum ~ refers to a private vehicle operated for public utility without the benefit of a
valid and existing special permit, provisional authority, or franchise;

b) Motorist Awareness Program ~ refers to any information or public awareness program
designed to enhance motorist awareness on the presence of tricycles on or near roadways:

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

d) Sanggunian ~ refers to the sungguniang panlungsod or the sangguniang hayan, as the
case may be,

e) Tricycle ~ refers to a motor vehicle 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 motorelar

f) Tricycle Drivers Safety Program ~ refers to any formal program of instruction that
provides accident avoidance, compliance with road safety laws and best practices and other safety-
oriented operational skills to tricycle drivers, including innovative training to meet unique regional
needs,

g) Tricycle Operators and Drivers’ Association or TODA ~ refers to the organization of
tricycle operators and drivers in a given LGU; and

h) Tricycle Sector ~ refers to a group consisting of drivers and operators of tricycles for

public transportation in the Philippines.

See. §. Tricycle Operating Requirements, ~ Tricycles shall be operated subject to the
following requirements

a) Subject to the guidelines to be prescribed by the Department of Transportation (DOT?),

and Regulatory

the Land Transportation Office (1.TO) and Land Transportation Office Franchisi
Board (LTFRB), the cities and municipalities shall have the power to regulate the operation of
tricycles and grant permits for the operation thereof within their territorial jurisdiction

Before it can issue the MTOP, the concerned LGU is required to submit to the DOTr a
Local Public Transport Route Plan that includes, among others, the tricycle routes and zones,
alternate tricycle route plan, designation of terminals and maximum number of tricycles operating

within their jurisdiction. Such plan shall be subject to the approval of the DOTr and must comply


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with the guidelines promulgated therefor with the end goal of ensuring overall efficiency
integration and safety of the transportation system

b) For safety reasons, no tricycle shall operate on national highways utilized by 4-wheel
vehicles greater than four (4) tons and where normal speed exceeds forty (40) kilometers per hour
However, the concerned Sanggunian, through an ordinance, may provide exceptions if there are
no public transportation servicing the said route, either along the highway or crossing the same,
other than tricycles, subject to the approval of the DOTr. Provided, further, that the exception may
also be allowed by the concerned Sanggunian when there is no other access to the areas concemed
other than the national highway as determined by the DPWH and the LGU; Provided, furthermore,
that when such operation is allowed, the LGU is mandated to provide appropriate signages, marks
for lanes, and other safety features to guide and protect the tricycles utilizing the highways.

Tricycles shall be allowed to travel beyond their regular route of service as embodied in
their franchise in emergency cases which shall be defined in the implementing rules and
regulations of this Act.

c) Operators shall employ only drivers possessing professional licenses duly issued by the
LTO. For this purpose, the LTO shall issue guidelines, including theoretical and practical
examinations, appropriate for drivers of tricycles

d) The LTO shall ensure the roadworthiness of tricycles before registration or renewal of

registration, including compliance with environmental laws, In coordination with motorcycle and
tricycle manufacturers and the Department of Trade and Industry (DT!), the LTO shall formulate
safety standards and the allowable designs and modifications, taking into consideration the needs
of the vulnerable groups, and determine the limitations on passengers and weight or load capacity
Such limitations shall be indicated on the body of the tricycles

€) Zones must be within the boundaries of the concerned city or municipality. However,
existing operating zones traversing two (2) or more LGUs may be maintained: Provided, That
operators serving said zones shall secure the necessary MTOP from each of the LGU having
jurisdiction over the covered areas

f) An LGU may adopt a common color-coding scheme for tricycles operating in the same
zone. Each unit shall be assigned and bear an identified number, aside from its license plate number

issued by the LTO.


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g) An operator wishing to completely terminate its service should report in writing such
termination to the LGU which originally granted MTOP.

h) The MTOP shall be valid for there (3) years, renewable for the same period. Transfer to
another zone, change of ownership of unit or transfer of MTOP shall be construed as an
amendment to an MTOP and shall require appropriate approval of the concerned LGU.

i) A tricycle shall be allowed to operate like a taxi service where, aside from rendering
services in the designated terminal, the tricycle can be flagged-down or engaged by passengers on
the road within its authorized zone of operation.

The concerned LGUs shall impose no other additional requirement for tricycle operation,

except those provided under this Act,

Sec. 6. Registration and Issuance of the MTOP. — There shall be a simple system and
procedure for registration and issuance of the MTOP in accordance with the framework and
principles of this Act. The registration fee for the application for an MTOP, which shall be valid
for a three-year period, shall not exceed one thousand pesos (PhP1,000.00). The said fee shall
cover the cost of the issuance of the MTOP, the filing fee, franchise fee, inspection fee, fare
adjustment fee, amendment, regulatory, and all other fees. No other fees shall be exacted from the
tricycle sector business activities or enterprise other than the registration fee as mentioned above

The LGU may increase or adjust the fee therein imposed once every five (5) years

Provided, That in no case shall the increase be more than 10% of the prevailing amount.

Sec. 7. Tricycle Sector One-Stop Shop Center. ~ All cities and municipalities shall
establish a Tricycle Sector One-Stop Shop Center which shall handle all transactions and
processing of the business permit applications within their respective jurisdictions. The Center
shall ensure that the processing of the MTOP of the members of the tricycle sector shall commence
on the day of their application and the registration shall be released within thirty-six (36) hours
upon submission of the complete requirements

To facilitate efficient and expeditious processing of the MTOP applications, the LGUs shall
also formulate a uniform and simple checklist of requirements for registration such as valid proof
of identity (Barangay clearance, certificate of residency, etc) and flowchart of the procedure of

registration. The LGUs shall also be responsible in translating the checklist of requirements and


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flowchart of procedure of registration in their own local dialect. The LGUs shall cause the posting
of the checklist and flowchart of procedure of registration in at least three (3) conspicuous areas,
preferably public areas, in the community and cause the publication of the same in the local

newspaper if there is any

Sec. 8. Rights and benefits of Workers in the Tricycle Sector. ~ The members of the
tricycle sector shall have the following rights

a) Self-organization to collectively negotiate with government and other entities in the
promotion of their welfare and advancement of their interests free from any political interference
or favor,

b) Informed participation in decision-making processes relevant to the other concerns of
their sector through their legitimate organizations. Towards this end, they shall be represented in
all public hearings for laws, ordinances, or regulations that will affect their sector,

©) Safe working condition with access to medical care services and insurance;

d) Freedom from any form of discrimination, violence, exploitation, or harassment;

e) Freedom from deprivation of property without valid cause and due process of law:

£) Equal access to information on how to safeguard their rights according to law,

g) Any driver shall not be forced or engaged to work in any hazardous work, activity or
undertaking, or to be exposed to hazardous working conditions, and

h) Any member of the tricycle sector shall be protected from any act of interference,

coercion, extortion, and bureaucratic red tape.

Sec. 9 Government Support to Tricycle Sector. ~ All concerned national government
agencies, government financial institutions, and LGUs shall include in their plans, programs,
projects and activities efforts that are supportive of the foregoing rights and other concerns of the
tricycle sector. Each LGU shall also create a grievance mechanism to deal with the concerns of the

members of the tricycle sector

Sec. 10, Mandatory Membership in SSS and Philhealth, Life and Accident Insurance,
and Legal Assistance. The Social Security System (SSS) and the Philippine Health Insurance

Corporation (PhilHealth) shall, within ninety (90) days from the effectivity of this Act, promulgate


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guidelines for the mechanism of collecting premiums from members of the tricycle sector. The
SSS shall also inform its members from the tricycle sector of services and loans that they can avail
of

Tricycle drivers shall, in addition to SSS and healthcare coverage, be provided accident
insurance coverage to compensate for damage or injury acquired such as death, disability, limb
amputations, loss of sight, hearing, and speech; including the loss of thumb or the index finger
Tricycle drivers are also entitled to legal assistance in the exercise and pursuit of their rights herein

granted

See. 11. Role of the Local Government Units. Subject to the operating conditions in

Section 5 of this Act and the guidelines to be promulgated by the DOTr, LTO and LTERB, cities

and municipalities shall have the following responsibilities
a) The LGUs, after consultation with the transport groups, the affected communities, and

other stakeholders, shall identify and designate viable routes and terminals of tricycle within the

city or municipality. Viable terminals shall be in proximity to public buildings, public markets,
private markets, commercial districts, or commercial establishments and other places which the
public frequently visits

b) The Sanggunian shall, within ninety (90) days after the identification and designation
of routes and terminals through public consultation and survey by the local planning and
development department or appropriate transportation development and traffic management office
of the LGU concerned, pass an ordinance designating the routes and the terminals of tricycles as
specified in this Act

An LGU, which has already established or designated routes and terminals of tricycles
prior to this Act, is deemed to have complied with this provision of the Act: Provided, That the
aforesaid establishment or designation of routes and terminals have been undertaken after
consultation with the stakeholders.

c) In coordination with the DOTr, LTO and public and private stakeholders, LGUs shall
also lead a tricycle maintenance program. This shall be done by providing the existing TODAs
within their jurisdiction, training and instruction on preventive and periodic maintenance in tandem

with the Department of Science and Technology (DOST) and other private institutions,



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d) Vocational education on auto-mechanics and related courses like engine repair and
maintenance shall also be offered by the LGU to the members of the tricycle sector, in coordination
with the Department of Labor and Employment (DOLE) and the Technical Education and Skills
Development Authority (TESDA). With the help of DOLE and TESDA, LGUs shall also provide

for alternative livelihood and skills-training programs to allow tricycle drivers to explore more

ally rewarding sources of income.

e) There shall be a regular conduct of mandatory Tricycle Drivers Safety Program at the
LGU level. The content and structure of the Tricycle Drivers Safety Program shall be formulated
by the DOTr, LTO, LTFRB and other relevant government agencies. The LGU shall require all
tricycle drivers within its jurisdiction to undergo this orientation. To complement this, the LTO
and LTFRB shall include a Motorist Awareness Program in all its safety trainings.

f) The LGUs, in coordination with law enforcement agencies, shall prevent the
proliferation of illegal or colorum tricycle units

) The LGUs, in coordination with the DOLE and other concerned agencies, shall ensure
the regular conduct of seminars to prevent the unlawful employment of children as tricycle drivers
and the gender-based discrimination in granting driver’s licenses

h) The LGUs are also hereby empowered to provide, in its ordinance or as terms or
conditions in the MTOP or franchise issued, additional acts of violation, whether relating to

existing laws, rules and regulations or to the treatment of tricycle passengers, and the penalties

therefore in accordance with the operation of tricycles within their respective jurisdi

Sec. 12. Phase-in of More Efficient Engines. Within thirty (30) days from the effectivity
of this Act, the DOTr and the DOST shall implement a continuing program to encourage
manufacturers to develop more efficient engines and cleaner technologies to be used by the tricycle
sector. The DTI-Bureau of Philippine Standards, in coordination with the Department of
Environment and Natural Resources-Environmental Management Bureau (DENR-EMB), shall
prescribe the standards and specifications for tricycle engines to be observed by the tricycle sector

n pursuit of cleaner technologies and in accordance with Republic Act No, 8749, otherwise known

as the Clean Air Act,


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Sec. 13. Policy on Impounding of Vehicle. ~ Tricycles shall not be impounded, confiscated
or destroyed for mere violation of traffic rules and regulations, in which case a traffic violation
ticket shall be issued to the erring driver.

A tricycle may be impounded under the following circumstances:

a) When used to perpetrate a crime,

b) Ifit operates without a requisite MTOP or an expired MTOP:

c) [fit operates under a fictitious MTOP,

d) IF itis not roadworthy or not built or modified in accordance with the design prescribed
by the LTO; or

e) If it is not compliant with the Clean Air Act or other environmental laws

Sec. 14. Penalties

a) A public officer or employee who acts in violation of Sections 5, 6, or 7 hereof, shall,
in addition to administrative and criminal liability under existing laws, be penalized with one-
month to six-month suspension from office, at the discretion of the court

b) A public officer who acts in violation of the provisions of Section 13 hereof shall be
administratively liable without prejudice on the part of the aggrieved member of the tricycle sector
from initiating a criminal or civil action, if applicable

©) A driver who operates a tricycle without the necessary MTOP to be observed by the
tricycle sector in pursuit of cleaner technologies and in accordance with Republic Act 8479,
otherwise known as the “Clean Air Act”, including any who incurs delinquency in payment of fees
that is tantamount to an incomplete application for an MTOP, operates in highways without valid
authorization as mentioned in Section 5 (b) hereof, transports passengers and/or goods beyond the
limitations on the number of passengers and on load capacity, or operates a tricycle not compliant
with environmental laws shall be punished by a fine of not less than Five hundred pesos
{PhPS00,00) but not more than Two thousand pesos (PhP2,000.00),

d) A driver who violates other traffic rules or regulations not specifically provided herein
shall be punished in accordance with applicable traffic laws’ Provided. That that penalty to be
imposed shall be limited to fifty percent (50%) of the fine or penalty that can be imposed on drivers

of four-wheeled vehicles.


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e) An operator who operates without the necessary MTOP or authority to operate in
highways, employs a driver without the requisite icense to drive a tricycle, including those below

the age of majority, or allows a driver to operate a tricycle that is not roadworthy or with

unauthorized modification affecting vehicle safety, shall be punished by a fine of not less than
Five hundred pesos (PhPS00.00) but not more than Two thousand pesos (PhP2,000.00) or the
impoundment of the tricycle by an enforcement agency for a period of two (2) months, The second
and succeeding offenses shall warrant the revocation of the MTOP or franchise and the perpetual
disqualification from being issued the said privilege

) Any person who shall willfully interfere with, restrain or coerce any member of the
tricycle sector in the exercise of rights or shall in any manner act in violation of Section 8 of this
Act shall, upon conviction, be punished by a fine of not less than Fifty thousand pesos
(PhPS0,000,00) but not more than Five hundred thousand pesos (PhPS00,000.00) or imprisonment
not exceeding (1) year or both, at the discretion of the court

If the offender is a public official, the court may, in addition to the penalties provided in

the preceding paragraph, impose the penalty of disqualification from office

Sec. 15. Funding. — An initial appropriation of One Billion Pesos (P1,000,000,000.00) is
hereby appropriated for this Act, Thereafter, the amount needed for the effective implementation

of this Act shall be included in the General Appropriations Act

Sec. 16. Implementing Rules and Regulations. The DOTr, in coordination with the LTO.
LTERB, SSS, PhilHealth, DOLE, TESDA, DOST, DTI and the Department of Interior and Local
Government, shall issue the implementing rules and regulations (IRR) of this Act within ninety
(90) days from its effectivity. The IRR shall include the guidelines for the allocation of the fund
for subsidizing the SSS or PhilHealth premiums of the members of the tricycle sector and the

programs that will benefit them

See. 17. Separability Clause, — If for any reason, any provision of this Act is declared

unconstitutional or invalid, such parts not affected thereby shall remain in full force and effect.

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Sec. 18, Repealing Clause. ~ All laws, decrees, executive orders, rules and regulations and
other issuances or parts thereof which are inconsistent with this Act are hereby repealed, amended

or modified accordingly

Sec. 19. Effectivity. — This Act shall take effect fifteen (15) days after its publication in the

Official Gazette or in a newspaper of general circulation

Approved,

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