Magna Carta for Tricycle Drivers and Operators

25 JUL 15 P3:19 TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session SENATE S.B. No. 603 Introduced by SENATOR IMEE R. MARCOS AN ACT PROVIDING FOR THE MAGNA CARTA FOR TRICYCLE DRIVERS AND OPERATORS, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES EXPLANATORY NOTE deeply integrated into the dairy cives of commuter. This nutrale mortarcy in dust a sidecar, capable of carrying at least three (3) passengers, provides an accessible and affordable mobility solution, particularly for "last-mile" journeys or short distances within communities nationwide. With over 6.9 million total registered units as of recent Land Transportation Office (LTO) data, tricycles, motorcycles, and other non- conventional motorcycles significantly outnumber other types of motor vehicles all over the country. This underscores their vital role in connecting Filipinos to essential services, markets, workplaces, and other daily activities, enabling widespread convenience. Despite this critical function, the sector and its operators often grapple with regulatory complexities and vulnerable working conditions. This measure directly addresses these challenges by advancing and protecting the rights of tricycle sector players and strengthening the role of local government units (LGUs). This measure seeks to promote the total well-being of the tricycle sector players. It achieves this through the simplified registration and issuance of Motorized Tricycle Operators Permits (MTOPs), as well as dedicated motorist awareness and safety programs to educate and raise awareness to motorists on road safety. In view of the foregoing, the immediate passage of this measure is earnestly sought. Free h. Marca -IMEER. MARCOS

one cit! TWENTIETH CONGRESS OF THE ) 25 JUL 15 P3:19 REPUBLIC OF THE PHILIPPINES ) First Regular Session RECEIVEG SENATE S.B. No. - Introduced by SENATOR IMEE R. MARCOS AN ACT PROVIDING FOR THE MAGNA CARTA FOR TRICYCLE DRIVERS AND OPERATORS, APPROPRIATING FUNDS THEREFOR, 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 " Magna Carta for Tricycle

Drivers and Operators."

Sec. 2. Declaration of Policy. - It is the policy of the State to promote the welfare

of the members of the tricycle sector and protect their rights by formulating policies, providing assistance, and initiating programs that encourage their socio-economic advancement.

Sec. 3. Definition of Terms. - Pursuant to this Act, the following terms shall

mean: Colorum - A private vehicle operated as public utility without the benefit of a valid and existing special permit, provisional authority, or franchise; b. Motorist Awareness and Safety Program - A program intended to educate and raise awareness to motorists on road safety; C. Motorized Tricycle Operators Permit (MTOP) - The permit that authorizes the holder to operate a tricycle for public transport; d. Sanggunian - The Sangguniang Panlungsod or the Sangguniang Bayan, as the case may be;

e. Tricycle - 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 5 motorela; f. Tricycle Operators and Drivers' Association (TODA) - An organization of tricycle operators and drivers recognized by a local government unit (LGU); and g. Tricycle Sector - A group consisting of drivers and operators of tricycles 9 for public transportation in the Philippines.

Sec. 4. Regulation of Operation. - Cities and municipalities shall regulate the

operation of tricycles and grant permits for their operations within their respective territorial jurisdiction, subject to the guidelines prescribed by the Department of Transportation (DOTr), the Land Transportation Office (LTO), and the Land Transportation Franchising and Regulatory Board (LTFRB).

Sec. 5. Issuance of MTOP and Creation of the Tricycle Operation Plan. - Prior

to the issuance of an MTOP, LGUs shall develop and submit a Tricycle Operation Plan (Plan). The Plan shall include, among others, the designated tricycle routes and zones, designation of tricycle terminals, the maximum number of tricycles authorized to operate within their jurisdiction, and the maximum number of allowed passengers and/or goods per tricycle. The Plan shall be subject to the approval of the DOTr and must comply with all relevant guidelines promulgated therefor, with the end goal of ensuring efficiency, integration, and safety of the local transportation system.

Sec. 6. Registration and Issuance of MTOP. - To streamline the process and

reduce financial burden on tricycle operators, a simplified procedure of registration and issuance of the MTOP shall be implemented by LGUs. The total registration fee for an application for an MTOP shall not exceed One Thousand Pesos (Php 1,000.00). The fee shall cover the cost of the issuance of the MTOP, filing fee, franchise fee, inspection fee, fare adjustment fee, amendment fee, regulatory fee, and all other similar fees. No

other fees or charges shall be exacted from the tricycle sector's business activities or enterprise, other than the aforementioned registration fee.

Sec. 7. Registration and Compliance Validation. - Prior to the issuance of any

MTOP, the concerned LGU shall be responsible for ensuring and verifying that the tricycle unit is duly registered with the LTO. Furthermore, it shall also validate that the tricycle unit is fully compliant with roadworthiness standards and applicable environmental regulations.

Sec. 8. Operational Guidelines. - The LGU having territorial jurisdiction over the

9 city or municipality where the tricycle is registered shall ensure that the following 10 guidelines are observed and implemented: a. For safety reasons, no tricycle shall be permitted to operate on national highways utilized by four (4)-wheel vehicles with a gross vehicle weight greater than four (4) tons and where normal speed exceed forty (40) kilometers per hour. However, the concerned LGU may, upon prior approval by the DOTr, provide exceptions to this prohibition if there are no viable alternative transportation services or modes servicing the said route, either along the highway or crossing the same, other than tricycles. Provided, however, that when such operation is allowed, the LGU is mandated to install and maintain appropriate signages, designate clear lane markings, and other safety features to guide and protect the tricycles utilizing these highways; b. Zones must be within the boundaries of the respective municipality or city. However, existing zones that traverse the territorial jurisdiction of more than one (1) municipality or city shall be maintained. Provided that, operators serving these zones shall be required to secure separate MTOPs from each of the municipalities and/or cities having jurisdiction over the areas covered by the zone; C. A color-coded scheme operating within the same zone may be imposed. Each tricycle unit shall be assigned and shall visibly bear an identification number, aside from its LTO license plate number;

d. An operator wishing to terminate or suspend its service shall report such termination or suspension in writing to the Sanggunian which originally granted the MTOP, prior to the cessation of operations; e. An MTOP shall be valid for a period of three (3) years from the date of its issuance, and shall be renewable for the same period thereafter. Any transfer to another zone, change of ownership of unit, or transfer of the MTOP shall be construed as an amendment to the existing MTOP and shall require the appropriate approval of the Sanggunian; f. Operators shall only employ drivers who possess valid professional 10 driver's license duly issued by the LTO. For this purpose, the LTO shall issue guidelines, including theoretical and practical examinations, appropriate for drivers of tricycles; g. No tricycle-for-hire shall be allowed to carry more passengers and/or goods than its designed capacity; and h. A tricycle-for-hire shall be allowed to operate in a manner similar to a taxi service, where, aside from rendering services from designated terminals, the tricycle may be flagged down or engaged by passengers on the road within its authorized zone of operation.

Sec. 9. One-Stop Shop Center for the Tricycle Sector. - All LGUs shall establish

a One-Stop Shop Center (Center) dedicated to the tricycle sector within their respective territorial jurisdiction. This Center shall serve as the sole facility for handling all transactions and processing of MTOP applications. The Center shall ensure that the processing of an MTOP shall commence on the day of their application, and the permit shall be released within two (2) working days upon the submission of the complete requirements by the applicant.

Sec. 10. Rights and Benefits of Members of the Tricycle Sector. - 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 29 any political interference or favor;

b. Informed participation in decision-making processes relevant to their concerns through their legitimate organizations. Towards this end, they shall be represented in all public hearings for laws, ordinances, or regulations that directly affect their sector; C. Safe working conditions, with access to medical care services and appropriate insurance coverage; 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; f. Equal access to information on how to safeguard their rights in accordance with the law; g. Access to programs, trainings, and vocational courses aimed at improving their skills and promoting road safety and awareness; and h. Safeguard from hazardous work, activity, or undertaking, or from exposure to hazardous working conditions.

Sec. 11. Role of the LGUs. - LGUs shall have the following responsibilities:

a. LGUs shall engage in continuous dialogues with the tricycle sector to identify and designate viable routes and terminals within their jurisdiction. Terminals shall be conveniently located in proximity to public buildings, public markets, commercial centers, and other similar public places; b. The Sangguniang concerned shall, within ninety (90) days after consultations with the stakeholders, designate the routes and terminals of tricycles as specified in this Act through an Ordinance; C. Adjustments on tricycle routes and terminals may be made. Provided that, recommendations from the tricycle drivers and operators shall be prioritized; d. In partnership with DOTr, LTO and LTFRB, programs on road safety and awareness for tricycle drivers and operators shall be conducted. LGUs shall require all holders of an MTOP within its jurisdiction to undergo said program. Further, LGUs shall

partner with the Department of Labor and Employment (DOLE) and the Technical Education and Skills Development Authority (TESDA) to offer vocational courses, such as auto-mechanics, engine repair, and maintenance, to members of the tricycle sector; and e. LGUs shall provide alternative livelihood and skills-training programs for the tricycle sector to provide more economic opportunities.

Sec. 12. Government Support to Tricycle Sector. - All concerned government

agencies, offices, and institutions shall include plans, programs, projects, and activities 9 that will support the concerns and welfare of tricycle drivers and operators.

Sec. 13. Grievance Committee. - LGUs shall establish a committee to act as a

grievance mechanism to promptly and fairly address the concerns raised by the members of the tricycle sector.

Sec. 14. Phase-in of More Efficient Engines. - Within thirty (30) days after the

effectivity of this Act, the Department of Science and Technology (DOST) and the DOTr shall formulate and implement a program promoting the adoption of more efficient engines and cleaner technologies for use by the tricycle sector.

Sec. 15. Mandatory Membership in the Social Security System (SSS) and the

Philippine Health Insurance Corporation (PhilHealth). - The SSS and the PhilHealth shall, within ninety (90) days from the effectivity of this Act, promulgate guidelines and mechanisms for the collection of premiums from members of the tricycle sector. Tricycle drivers shall, in addition to SSS and PhilHealth coverage, be provided with accident insurance coverage to compensate for damages or injuries acquired during the course of their work, such as death, disability, limb amputations, loss of sight, hearing, and speech, including the loss of thumb or an index finger. Tricycle drivers are also entitled to legal assistance in the exercise and pursuit of their rights herein granted.

Sec. 16. Appropriation. - An initial appropriation of One Billion Pesos (Php

1,000,000,000.00) is hereby appropriated for this Act. Thereafter, the amount needed

1 for the continued implementation of this Act shall be included in the annual General 2 Appropriations Act.

Sec. 17. Penalties. -

a. A driver who operates a tricycle without the necessary MTOP, operates on national highways without valid authorization as required in Sec. 8(a) hereof, incurs delinquency in the payment of prescribed fees that is tantamount to an incomplete 7 application for an MTOP, transports passengers and/or goods beyond the authorized 8 limitations on the number of passengers and/or load capacity, operates a tricycle not 9 compliant with environmental laws, including Republic Act No. 8479, otherwise known 10 as the "Clean Air Act", or fails to observe guidelines prescribed for the adoption of 11 cleaner technologies, shall be punished by a fine not less than Five Hundred Pesos (Php 500.00) but not more than Two Thousand Pesos (Php 2,000.00), or the impoundment of the tricycle by an enforcement agency for a period of two (2) months. b. An operator who operates a tricycle without the necessary MTOP, or operates on national highways without the valid authorization as required in Sec. 8(a) hereof, employs a driver without the requisite professional license to drive a tricycle, including those below the age of majority, or allows a driver to operate a tricycle that is not roadworthy or has unauthorized modification affecting vehicle safety, shall be punished by a fine not less than Five Hundred Pesos (Php 500.00) but not more than Two Thousand Pesos (PhP 2,000.00), 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. C. 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 Sec. 10 of this Act, shall, upon conviction, be punished by a fine of not less than Fifty Thousand Pesos (Php 50,000.00) but not more than Five Hundred Thousand Pesos (Php 500,000.00), or imprisonment not exceeding one (1) year, or both, at the discretion of the court.

d. A public officer or employee who acts in violation of Secs. 4, 5, 6, 7, 8, and 9 hereof shall, in addition to administrative and criminal liability under existing laws, be penalized with one (1) month to six (6) months suspension from office, at the discretion of the court.

Sec. 18. Implementing Rules and Regulations (IRR). - Within ninety (90) days

from the effectivity of this Act, the DOTr, in coordination with the LTO, LTFRB, SSS, PhilHealth, DOLE, TESDA, DOST, the Department of Trade and Industry (DTI) and the 8 Department of the Interior and Local Government (DILG), shall promulgate the rules 9 and regulations necessary to implement this Act. Further, the IRR shall include the 10 guidelines for the allocation of the fund for subsidizing the SSS and PhilHealth premiums of the members of the tricycle sector and the programs that will benefit them.

Sec. 19. Separability Clause. - If any portion or provision of this Act is declared

invalid or unconstitutional, the remainder of this Act or any provision not otherwise affected shall remain valid and subsisting.

Sec. 20. Repealing Clause. - Any law, presidential decree or issuance, executive

order, letter of instruction, administrative order, rule, ordinance, or regulation contrary to or inconsistent with the provisions of this Act is hereby repealed, modified, or amended accordingly.

Sec. 21. Effectivity Clause. - This Act shall take effect after fifteen (15) days

following its publication in the Official Gazette or in a newspaper of general circulation. Approved,