EIGHTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES

H.B.No._ 4549 __

Introduced by Rep. Vilma Santos-Recto
6" District of Batangas

AN ACT
ESTABLISHING CARPOOL SERVICE IN THE COUNTRY, REGULATING ITS
USE AND OPERATION, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Slow moving traffic is a bane to the productivity, well-being and development, not
only of the individual but of the entire country. A study commissioned by Uber in 2017
entitled Unlocking Cities' shows that a typical driver plying the streets of Manila has to
endure an additional 132% travel time during peak hours, which could adversely affect
commuter’s health and psychosocial well-being in the long run. Another study made by Japan
International Cooperation Agency” in 2014 estimates that the traffic congestion plaguing
Metro Manila costs the Philippine economy more than two billion pesos every day. Without
intervention, the cost of severe traffic congestion on the people and the economy could
balloon to more than five billion pesos a day by 2035.

The proposed measure seeks to thwart this looming crisis by utilizing a large,
untapped resource found in every gridlocked roadway in the country — empty passenger seats
in single-occupancy vehicles. This bill intends to promote carpooling as an effective vehicle
reduction scheme, as well as a straightforward way to economize fuel consumption, decrease
overall carbon footprint, and even lessen traffic-induced stress. This bill is optimistic that
through the promotion of carpool services especially in urban areas, the government can
minimize the problem of traffic congestion in a manner that is simple, pragmatic, and at

almost no cost to taxpayers.

* The Boston Consulting Group. (2017). Unlocking Ges: The Impact of Ride-sharng in Southeast Asia and beyond, Uber.
* apan international Cooperation Agency. (2014). Roadmap for Tronsport infrastructure Development for Metre Manila and ts Surrounding Ares
Region Il and Region IVA). ALMEC Corporation.


To promote the use of carpool services, this bill establishes the legal framework for
providing and accepting carpool services in the country. This bill classifies carpool vehicles
as private carriers, thereby reducing the bureaucratic requirement to provide carpool services
legally. The bill likewise allows the owners and/or drivers of carpool vehicles to receive
monetary contributions to cover expenses incidental to carpool vehicle operation, such as
fuel, oil, and lubricant expenses, toll fees, parking charges, and vehicle maintenance costs.
Government agencies are also authorized under the bill to provide incentives to carpool
owners and/or drivers, such as exemption from vehicle volume reduction programs and
designation of dedicated carpool lanes, among others.

Moreover, this bill addresses key issues associated with commuting in carpool
vehicles. To warrant the roadworthiness of carpool vehicles, this bill compels the owners to
follow the recommended preventive maintenance schedule of the carpool vehicles. To
guarantee the safety and security of carpool passengers, this bill requires clearances and other
documents to ensure that carpool drivers can be identified and found, and comprehensive
motor vehicle insurance to protect passengers against accidents and other fortuitous events.
To ensure the safety of carpool drivers and the carpool vehicles, this bill limits the provision
and acceptance of carpool services within carpool associations empowered to scrutinize and
monitor its own members. Finally, to keep unscrupulous vehicle owners and drivers from
exploiting the carpool services to operate illegal colorum vehicles, this bill imposes a
registration requirement for carpool vehicles, a carpool trip limit of two trips per day, a
carpool passenger limit of six per carpool vehicle, and a Gas Fund contribution limit to be
defined by the Department of Transportation (DOT).


Ultimately, this bill intends to achieve two purposes. First, this bill seeks to provide a
safe, dependable, environmentally-sound and sustainable mode of transportation to the
‘commuting public while decongesting traffic in Metro Manila and in other urban areas in the
country, Second, the bill seeks to improve the well-being of the commuting public by
reducing the level of carbon emissions from motor vehicles, cutting the duration and the
number of transfers in commuting to and from work, and by diminishing the traffic-induced
exposure to health risks.

VILMA SANTOS-RECTO


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EIGHTEENTH CONGRESS OF THE }

REPUBLIC OF THE PHILIPPINES )
First Regular Session )
HOUSE OF REPRESENTATIVES
H.B.No._4549

Introduced by Rep. Vilma Santos-Recto
6" District of Batangas

AN ACT
ESTABLISHING CARPOOL SERVICE IN THE COUNTRY, REGULATING ITS
USE AND OPERATION, AND FOR OTHER PURPOSES.

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 “Philippine Carpool Service
Act.”

Sec. 2. Declaration of Policy. — It is hereby declared the policy of the State to
promote a just and dynamic social order through policies that provide adequate social
services, promote full employment, a rising standard of living, and an improved quality of
life for all. Towards this end, the State shall develop mechanism to regulate the use of carpool
services not only as a safe, dependable, environmentally-sound and sustainable mode of
transportation, but also as a means to improve the well-being of Filipino commuters and to
decongest traffic in Metro Manila and in other urban areas in the country.

Sec. 3. Definition of Terms. — For the purposes of this Act:

a) Carpool Service shall refer to voluntary arrangement between two (2) to
seven (7) persons, including the driver of a particular vehicle, to make one-way or round-trip
journey in a single vehicle;

b) Carpool Association shall refer to a duly-registered non-stock, non-profit
organization created for the provision of carpool services to its members;

©) Carpool Driver shall refer to a duly-licensed operator of a motor vehicle that
provides carpool service in accordance with the provisions of this Act;


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4) Carpool Passenger shall refer to any bona fide member of a carpool association
who accepts carpool service from a fellow carpool association member in accordance with
the provisions of this Act;

©) Carpool Trip shall refer to the vehicle trip that commences at the carriage of the
first carpool passenger and terminates upon the arrival of the carpool vehicle to its intended
destination;

f) Carpool Vehicle shall refer to a passenger car, utility vehicle or sports utility
vehicle registered for private use that provides carpool service in accordance with the
provisions of this Act;

2) Gas Fund shall refer to an amount that may be collected by a carpool driver
and/or owner from the carpool passengers to cover the expenses incidental to carpool vehicle
operation such as carpool registration cost, fuel, oil and lubricant expenses, parking charges,
toll fees, and vehicle upkeep expenses;

h) Online Carpool Platform shall refer to electronic applications that allows carpool
drivers and passengers to search for and communicate with other carpool drivers and
passengers; and

i) Owner shall refer to the actual and legal owner of a motor vehicle, in whose name
such vehicle is duly-registered with the Land Transportation Office (LTO).

Sec. 4. Establishment of Carpool Service. ~ Owners of motor vehicles registered for
private use are hereby allowed to provide carpool services subject to the following
conditions:

a) The carpool services shall be provided and accepted only among members of a
carpool association on a purely voluntary basis;

b) The carpool owner and/or driver and the carpool passenger shall have a common
origin and destination;

©) The carpool services shall be offered for a maximum of two (2) carpool trips a
day regardless of the number of carpool passengers;

d) The carpool driver or any carpool passenger shall not solicit for passengers on
any road, parking area, tollway entrance, public transport terminal, and other similar facilities
and establishments;

©) The carriage of carpool passenger shall only be incidental to the carpool driver’s
or owner's original purpose for the trip;


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f) The carpool driver shall inform the carpool passengers in advance about the
details of the trip, which shall include the date, time, pick up and drop off points, travel route
and Gas Fund contributions, if any;

g) The carpool driver shall not offer driving or vehicle rental services or display any
material or information to that effect; and

h) The owner of the vehicle shall register with the LTO as a carpool vehicle in
accordance with its rules and regulations.

Sec. 5. Classification of Carpool Vehicles. — Any provision of the law to the contrary
notwithstanding, carpool vehicles shall be classified as private carriers and shall be subject to
the provisions of Title I], Book IV of Republic Act No. 386, otherwise known as the “Civil
Code of the Philippines.”

Sec. 6. Motor Vehicle Registration. — Carpool vehicles shall be registered as motor
vehicles for private use. Registration for carpool service and subsequent renewal of carpool
service registration may be executed along the renewal of motor vehicle registration in
accordance with the rules and regulation of the LTO.

‘The documentary requirements for carpool service registration shall include the
following:

a) Proof of Filipino citizenship;

b) Valid LTO Official Receipt and Certificate of Registration of authorized unit/s in
‘the name of the Owner;

©) Valid driver’s license of authorized owner/s and/or carpool driver/s;

d) Valid Certificate of Employment, Certificate of Business Registration, or Proof of
School Registration under the name of the owner/s and/or authorized carpool driver/s;

¢) Valid National Bureau of Investigation (NBI) or Philippine National Police (PNP)
Clearance;

f) Valid proof of billing addressed to the owner and/or driver;

2) Certificate of motor vehicle insurance coverage;

h) Proposed travel route from point of origin to the intended destination; and

i) Other documentary requirements as may be deemed necessary by the Department
of Transportation (DOT®) or the LTO.


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Sec. 7. Carpool Association. — Carpool drivers, owners, and carpool passengers shall
organize themselves into carpool associations to manage carpool services and limit its
provision to bona fide members of its organization. Carpool associations shall be registered
with the Securities and Exchange Commission in accordance with its rules and regulations.

Sec. 8. Membership in Carpool Associations. - Membership in carpool association

shall consist of Regular Members and Associate Members. Filipino citizens of legal age,
holder of at least Non-Professional Driver's License with Code 2 and 4 Restrictions, and who
‘own, possess or operate at least one (1) carpool vehicle shall be eligible for Regular
Membership. Filipino citizens and resident aliens of legal age, and who neither hold a
driver’s license nor own, possess or operate a carpool vehicle shall be eligible for Associate
Membership. Regular Members shall be accorded with more representatives in the Board of
Trustees and more voting power in accordance with the articles of incorporation and by-laws
of the carpool association.

Sec. 9, Requirements for Membership in Carpool Associations. — The carpool
association shall exercise due diligence in determining the identity of and accepting
prospective members. Prospective members shall be accepted into a carpool association by a
majority vote of its Board of Trustees in accordance with its articles of incorporation and by-
laws: Provided, That the Board of Trustees, prior to the acceptance of prospective carpool
association members, shall require the submission of documents that include, but are not
limited to:

a) Proof of identity of the prospective member;

b) Valid Certificate of Employment, Certificate of Business Registration, or Proof of
Schoo! Registration under the name of the prospective member;

©) Valid driver's license for prospective carpool driver;

d) Valid LTO Official Receipt and Certificate of Registration of the prospective
carpool vehicle;

e) Valid NBI or PNP Clearance;

f) Valid proof of billing addressed to the owner and/or driver; and

2) Other document deemed necessary by the Board of Trustees to ascertain the
identity of prospective carpool association members.

The data and information provided by prospective carpool association members shall
be governed by the pertinent provisions of Republic Act No. 10173, otherwise known as the
“Data Privacy Act of 2012.”


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Sec. 10. Identification of Carpool Association Members. ~ The Carpool association
shall issue non-transferable identification cards to its bona fide members. The identification
cards shall be required to be shown prior to the provision or acceptance of the carpool
services and shall remain in the possession of the respective members throughout the duration
of the carpool trip.

Sec. 11. Conveyance of Carpool Passengers. ~ Carpool drivers are hereby allowed to
pick up carpool passengers in proximity to their point of origin and to drop off carpool
passengers in proximity to the carpool driver’s intended destination: Provided, That the
carpool driver shall only be allowed to ferry carpool passengers belonging to the same
carpool association: Provided, further, That the carpool driver shall only be allowed to ferry
as many passengers as recommended by the vehicle manufacturer: Provided, finally, That
under no circumstances shall the number of carpool passengers in a carpool vehicle exceed
six (6) persons excluding the carpool driver.

Sec. 12, Gas Fund Contribution. — The owner of the vehicle shall not accept or
charge any fare from carpool passengers, except for the contribution to the carpool vehicle's
Gas Fund on a non-profit basis: Provided, That the maximum amount of Gas Fund
contribution of carpool passengers shall not be higher than the estimated cost of taxi service
from the point of origin to the point of destination: Provided, further, That the DOTr shall, in
consultation with the Department of Energy (DOE), determine the maximum rate of Gas
Fund contribution that may be collected from carpool passengers, taking into account the
maximum number of allowable passengers as provided in Section 11 of this Act, the distance
and duration of travel from the point of origin to the point of destination, and a realistic
estimate of expenses incidental to carpool vehicle operation: Provided, finally, That the DOTr
shall adjust the rate of Gas Fund contribution once every three (3) years after the effectivity
of this Act using the Consumer Price Index (CPI) for the Operation of Personal Transport
Equipment, as published by the Philippine Statistics Authority (PSA).

Sec. 13. Maintenance of Carpool Vehicles. - The owners of carpool vehicles shall
follow the recommended preventive maintenance schedule of the vehicle manufacturer:
Provided, That the owners shall maintain a record documenting the maintenance services
performed on their vehicles and the dates when such maintenance services were performed as
attested to by the vehicle maintenance service provider: Provided, further, That a copy of the
carpool vehicle maintenance service record shall be required by the LTO in the renewal of
the carpool vehicle registration.


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Sec. 14. Insurance of Carpool Vehicles. - The owners of the carpool vehicles shall be
required to contract a comprehensive motor vehicle insurance from a reputable insurance
provider to cover the carpool vehicle and its passenger against insurable risks: Provided, That
a copy of the comprehensive motor vehicle insurance for the carpool vehicle shall be required
by the LTO in the registration and renewal of the carpool vehicle registration.

Sec. 15. Violations. — The following shall be constituted as violations of this Act:

a) Engaging in carpool services without or with expired carpool registration;

b) Provision of carpool services without carpool association membership;

©) Provision of carpool services to non-members of carpool association;

d) Exceeding the maximum daily carpool trips allowed;

) Soliciting for passengers on any road, parking area, tollway entrance, public

transport terminal, and other similar facilities and establishments;

f) Exceeding the vehicle’s recommended number of passenger or the maximum
number of passengers as provided in Section 11 of this Act, whichever is lower;

2) Offering driving or vehicle rental services or displaying materials and information
to that effect;

h) Engaging in carpool services with invalid or expired motor vehicle insurance;

i) Collecting more than the maximum Gas Fund contribution from carpool
passengers; and

J) Other acts or omissions inconsistent with the provisions of this Act as may be
determined by the DOTr.

The DOTr and the LTO shall, after conducting public consultation, determine the
appropriate fines and penalties for the violation of any provisions in this Act.

Sec. 16. Carpool Passenger Complaints. ~ Carpool associations shall establish a
mechanism to receive and address complaints arising from the carpool services within their
respective associations. The DOTr shall likeiwse establish a system to receive and address the
complaints of carpool passengers against owners, carpool drivers, and carpool associations in
accordance with its rules and regulations.

Sec. 17. Carpool Incentives. — The DOTr, LTO, Metro Manila Council, local
government units, and other government agencies concerned may provide incentives to
promote the use of carpool services such as, but not limited to: designation of dedicated
carpool lanes, exemption from Expanded Unified Vehicular Volume Reduction Program and
other similar traffic schemes, and discounts on toll fees and vehicle registration fees.


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Sec. 18. Online Carpool Application. ~ Carpool associations or other third-party
developers may use electronic or online carpool application to provide seamless connection
between carpool association members: Provided, That owners and carpool drivers can only
provided carpool services in accordance with Section 4 of this Act: Provided, further, That
the total cost of using carpool platform and carpool services shall not exceed the maximum
Gas Fund contribution as provided in Section 12 of this Act.

Sec. 19. Exemptions. ~ The carpool owner and/or driver shall secure at least a Non-
Professional Driving License from the LTO to operate carpool vehicles: Provided, That
carpool drivers who are employed as personal or corporate drivers, or who operates
motorcycles, buses, trucks or articulated vehicles shall be required to obtain the appropriate
driving license from the LTO.

The carpool vehicle shall be exempted from securing a Certificate of Public
Convenience or any public land transportation service franchise or authorization issued by
any government agency or instrumentality: Provided, That the carpool owner and/or driver
satisfy all the conditions stipulated under Section 4 of this Act: Provided, further, That no
provision in this Act shall be construed as allowing the commercial operation of any motor
vehicle registered for private use, or repealing, amending or modifying any law, rule or
regulation that compels the satisfaction of any and all requirements prior to the operation of
public land transportation services.

Sec. 20. Implementing Rules and Regulations. — Within sixty (60) days from the
effectivity of this Act, the DOTr shall, in consultation with the LTO and other government
agencies concerned, promulgate the necessary rules and regulations to effectively implement
the provisions of this Act.

Sec. 21. Separability Clause. - If, for any reason, any provision of this Act or any part
thereof shall be held unconstitutional and invalid, the other parts or provisions of this Act,
which are not affected thereby, shall remain in full force and effect.

Sec. 22. Repealing Clause. — All laws, decrees, orders, rules and regulations or parts
thereof inconsistent with any of the provisions of this Act are hereby repealed, amended or
modified accordingly.

Sec. 23. Effectivity. — This Act shall take effect fifteen (15) days after its complete
publication in at least two (2) newspapers of general circulation or in the Official Gazette.

Approved,