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HOUSE OF REPRESENTATIVES [fg RECEIVED @)
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NINETEENTH CONGRESS

Second Regular Session

HOUSE BILL NO. 9714

Introduced by: REP. SALVADOR A. PLEYTO, SR.

EXPLANATORY NOTE

The rapid increase in motorcycle usage as a common means of transportation in
the Philippines is relatively remarkable. This is due primarily to the heavy congestion
of four-wheeled vehicles in major thoroughfares and the soaring fuel price.

Many commuters will opt to ride a motorcycle for hire to get to their destination
on time. Particularly urban workers and employees who are on a daily struggle to get
to work on time.

In fact, in many countries in Asia, motorcycle taxis are already operating as a
regular common carrier regulated by their government. It is truly adopted as an
affordable and quicker conveyance time especially in clogged streets of the city or
urban centers.

The proposed measure seeks to set the guiding principles and standards for the
operation of motorcycles-for-hire in the country. This measure also aims to impose
appropriate penalties for erring drivers and/or operators in the conduct of their
transportation service business.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
Second Regular Session

HOUSE BILL NO, _9714

Introduced by: REP. SALVADOR A. PLEYTO, SR.

AN ACT REGULATING THE OPERATION OF MOTORCYCLES-FOR-
HIRE, IDENTIFYING IT AS PUBLIC UTILITY MOTORCYCLES, 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 “Public Utility
Motorcycles Act”.

SEC. 2, Declaration of Policy - The State recognizes the importance of
transportation in economic development. The recent innovations in technology have
opened an opportunity for alternative 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
alternative mode of public transportation that is sufficient, safe, secure and
economical.

Towards 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) Motorcycle — refers to any two (2)-wheeled motor vehicle without
appendages;

b) Motoreycle-for-hire — refers to a motorcycle, duly registered as
such sunder this Act, and used to carry passengers or goods on a for
hire basis, offering its services to the public:

©) Multi-homing — refers to an approach where an operator my accredit
a particular motorcycle-for-hire to more than one transport network


company or Online E-commerce Platform Provider allowing the
same to utilize more than one digital platform in delivering transport
services;

d) Online E-commerce Platform Provider — refers to a natural or
juridical person whose primary business is to provide the digital
platform that connects online buyers and online sellers to facilitate
the sale of products, goods or services through the internet;

©) Operator ~ refers to the person in whose name the motoreycle-for-
hire is registered;

1) Rider — refers to the driver of the motorcycle-for-hire; and

8) Transportation Network Company ~ refers to an entity which
provides pre-arranged transportation services for compensation using
an internet-based technology application or digital platform
technology to connect clients with riders to facilitate a contract of
carriage using a motorcycle-for-hire.

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 good which shall include parcels and mail. This Act shall not apply to
motorcycles directly owned by entities and used 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. A
transportation network company (TNC) or an Online E-commerce platform provider
(OEPP) should exercise due diligence and reasonable care in accrediting motorcycles-
for-hire operators and drivers that shall operate under their platforms.

SEC. 6. Registration of Motorcycles-for-Hire — A motorcycle intended to be
used as a motoreycle-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 Motoreycles-for-hire ~ The Department
of Transportation (DOTr), upon the recommendation of the Department of Trade and
Industry ~ Bureau of Philippine Standards (DTI-BPS) and LTO, shall prescribe the
standards and specifications of motorcycles that may be allowed to operate as
motoreycles-for-hire, taking into consideration the safety of the riders and passengers.

No modifications shall be made on any motoreycles-forhire, except for the
installation of the appropriate accessories, such as motoreyele bracket, top box,


luggage carrier, saddlebag, step board or footrest, speed limiter or monitoring devices,
in accordance with the standards and specifications prescribed by the D'TI-BPD and as
approved by the LTO under existing laws, rules and regulations.

SEC. 8. Franchising of Motorcycle-for-Hire - The franchising of motoreycle-
for-hire in metropolitan and urbanized areas with an existing and operating TNC or
OEPP is vested in the Land Transportation Franchising and Regulatory Board
(LTFRBO. The LTFRB shall set forth in the franchise granted to operators, the terms
and conditions to be observed in the operation of motorcycles-for-hire. Such
franchise shall allow the operator to engage in multi-homing operations upon
accreditation with other TNCs or OEPPs.

The LTFRB, in coordination with the concemed local government unit in a
Province, city or municipality, shall determine the number of units and areas of
operations, or routes if applicable, of motorcycles-for-hire in accordance with the
route rationalization plan or studies adopted by the DOTr: Provided, That in
determining the number of motoreycle-for-hire units to be operated by TNCs and
OEPPs, the demand for their services shall be the basis for the LTFRB in the issuance
ofa franchise.

The Franchise fee and any other related charges for operating a motorcycle-for-
hire shall be determined by the LTFRB, subject to the approval of the DOTr.

In areas outside the metropolitan areas or regional hubs and where there is no
existing or operating TNC or OEPP, the application for a franchise shall be coursed
through the LGU under which jurisdiction the motorcycle-for-hire intends to operate:
Provided, That a motorcycle-for-hire may only operate within the territorial
Jurisdiction of the LGU concemed: Provided further, That the LGUs may recommend
the appropriate number of units that may be allowed to operate in their respective
jurisdictions based on the demand in the locality.

To ensure the fast and efficient processing of franchises, the LTFRB and LGUs
shall establish a system of coordination that shall be incorporated in the rules and
regulations to be issued pursuant to Sec. 21 of this Act.

SEC. 9. Requirements for the Grant of a Franchise of Issuance of a Certificate
of Public Convenience (CPC) — A CPC shall only be issued to an operator upon
submission of and compliance with the following requirements:

a) Proof of Filipino citizenship;

b) Proof of accreditation by a TNC or OEPP for motorcycles-for-hire under
the digital platform or business permit issued by a relevant city or
municipality for motorcycle-for-hire not operating under a TNC or OEPP;

¢) Certification of Registration duly issued by the LTO;

d) Appropriate space to serve as a garage for a franchise applicant intending to
operate three (3) or more motorcycles-for-hire:


©) Insurance coverage for any death or injury that may occur to a rider,
passenger or any third party or damage to property by reason or on occasion
of its operation; and

f) Tax Identification Number or Certificate of Registration as Common
Carrier issued by the Bureau of Internal Revenue (BIR), if applicable.

SEC. 10. Qualification of Motorcycle-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 theoretical and practical
examinations that are appropriate for the operation of a motorcycle-for-hire. Only
riders possessing such a professional driver's license shall be allowed to operate
motorcycles-for-hire. The LTO shall conduct a continuing safety training program for
licensed riders of motorcycles-for-hire with a curriculum duly certified by the
Technical Education and Skills Development Authority (TESDA): Provided’ That
licensed riders shall attend at least one (1) safety training seminar every year.

SEC, 11. Accreditation Requirements of TNCs and OEPPs — A 'TNC or OEPP
must be duly registered with the Securities and Exchange Commission (SEC).

Before a TNC or OEPP which utilizes motorcycles-for-hire in its business
operations is allowed to operate as such, it must comply with the accreditation
requirements of the Department of Information and Communications Technology
(ICT). The DTI, LTFRB and DICT shall jointly issue the guidelines that shail
govern the operations of TNCs and OEPPs using motorcycles-for-hire.

The TNCs and OEPPs must possess and maintain the following minimum
requirements for their accreditation:

a) Proof of Filipino citizenship;

b) Proof of financial capacity’

©) SEC registration;

4) BIR Tax Identification Number;

©) An Accident Quick Response System:

1) A training center, duly certified by the LTO and TESDA, to evaluate and
determine the competence of riders. The DICT may, as a requirement for
renewal of accreditation, consider the previous safety record of the TNC or
OEPP as certified by the LTO during the effectivity of its accreditation
being applied for renewal.

SEC. 12. Operation of Motorcyele-for-Hire - Motorcycles-for-hire may be
allowed to operate using digital booking platforms or designated terminals. To
maximize its operation, motorcycles-for-hire shall not be bound by a single TNC or
OEPP but shall be allowed to adopt a multi-homing approach within a particular area
of operation under the given franchise: Provided, That a motorcycle-for-hire
accredited under any TNC or OEPP platform may not be allowed to operate as
motoreycles-for-hire without using such platform.


The capacity, nature and character of goods that may be transported, as well as
the dimensions of the motorcycle bracket or luggage carrier of motorcycles-for-hire,
shall be determined by the LTFRB in accordance with the standards and specifications
provided under Section 7 of this Act.

Motorcycles-for-hire shall operate at speeds allowable under Republic Act
No. 4136, otherwise known as the “Land Transportation and Traffic Code”, 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, OEPPs or TNCs 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 and subject to the approval of the
DOTr. The fare structure shall take into consideration the supply of and demand for
motoreycle-for-hire services 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 TNCs or OEPPs upon the operators
or riders on the shipping or delivery fee. The LTFRB shall periodically review the
fare structure and parameters of determining the applicable fares, subject to the
approval of the DOTr. The booking system of TNCs and OEPPs shall feature a
mechanism that enables clients to compare the transportation cost charged by each of
the available digital platforms.

In the case of motorcycle-for-hire operating outside the digital platforms, the
fare shall be determined by the LTFRB after a public consultation with LGUs and the
operators and other stakeholders, with the approval of the DOTr.

SEC: 14. Processing of Personal Information ~ Any collection, processing and
storage of personal information and sensitive personal information involved in the
registration of motorcycles-for-hire, digital bookings, and other requirements under
this Act shall be made in accordance with the provisions of Republic Act No. 10173,
otherwise known as the “Data Privacy Act of 2012”.

SEC. 15. Liabilities for Death, Injuries or Damage to Property ~The operator
and the TNC 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 shail
be jointly and solidarily liable with rights of subrogation against any party at fault:
Provided, That the liability of the TNC or OEPP shall not exceed the amount of the
insurance coverage of the operator.

SEC. 16. Accident Quick Response — Each TNC or OEPP shall establish a quick
response team to provide immediate medical care or bring any person injured by the
operation of the motoreycle-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 an emergency or road crash shall be part of the
booking application options of the digital platforms. When necessary, the TNC or
OEPP shall advance any amount necessary for the admission of such injured person ot
Persons to a hospital or medical facility up to the maximum insured amount.

SEC. 17. Enforcement — To ensure the safe and secure operation of motorcycle-
for-hire, the LTO shall deputize LGUs and other relevant government agencies to
assists 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
and 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
made accessible to the public.

Consistent with its mandate under Republic Act No. 7924 which created the
Metropolitan Manila Development Authority (MMDA), the MMDA shall continue to
exercise its traffic enforcement functions within Metro Manila in furtherance of the
objectives of this Act.

All violations related to the terms and conditions of a 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 TNCs or OEPPs form 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 the other latter, acts detrimental to
safety and security, and other reasonable or valid grounds.

SEC. 18. Penalties — The following prohibited acts shall be penalized as follows:

a. Any driver 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 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 rules and regulations to be issued pursuant to Sec. 21 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 Republic Act No. 7394, otherwise known as
the “Consumer Act of the Philippines” and Republic Act No, 10173,
when applicable, shall apply for acts or omissions committed in the
course of motoreycle-for-hire operation,

SEC. 19. Travel Demand and Operational Data — To assist the DOTr in
transportation planning and management, the TNCs 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 — To ensure a smooth transition in the
implementation of this Act, the authority and accreditation granted to existing TNCs,
OEPPs and operators shall continue to be effective until their expiration or sis 6
months from the promulgation of the rules and regulations to be issued pursuant to
Section 21 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 LTERB, LTO,
DTI-BPS, DICT, BIR, TESDA, Department of Health, Department of Interior and
Local Government, MMDA, and Philippine National Police-Highway Patrol Group,
and in consultation with stakeholders, promulgate rules and regulations for the
effective 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 laws, presidential decrees, executive orders,
ordinances, rules and regulation, and other issuances or part thereof which are
inconsistent with this Act, are hereby repealed or modified accordingly.

SEC.24. Effectivity — This Act shall take effect after fifteen (15) days after its
Publication in the Official Gazette of in newspapers of general circulation,

Approved,