Motorcydes-for-hire Act

Atte sted TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES P1:05 JUL 29 First Regular Session ) SENATE S.B. No. - Introduced by SENATOR IMEE R. MARCOS AN ACT RECOGNIZING MOTORCYCLES AS PUBLIC UTILITY VEHICLES, AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 4136, OTHERWISE KNOWN AS THE "LAND TRANSPORTATION AND TRAFFIC CODE," AS AMENDED, AND REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE "LOCAL GOVERNMENT CODE OF 1991", AS AMENDED, AND FOR OTHER PURPOSES EXPLANATORY NOTE The Philippines continues to grapple with severe traffic congestion in its urban areas. The 2024 TomTom Traffic Index highlights the issue, with several Philippine cities ranking prominently among the most congested 500 cities across 62 countries. Davao City now stands as the 10th most congested metro area worldwide and 8th for city centers. Commuters in Davao City spend an average of 32 minutes and 59 seconds to travel 10 kilometers, leading to an estimated 136 hours lost annually during rush hours. Meanwhile, Metro Manila is ranked as the 15h for metro areas and 14th for city centers. Travelling 10 kilometers in Metro Manila takes an average of 32 minutes and 10 seconds, resulting in commuters losing approximately 127 hours per year to rush hour traffic. More specifically, Caloocan, ranked 18th for metro areas, sees an average of 30 minutes and 44 seconds to travel 10 kilometers, causing an estimated 111 hours lost annually during rush hours. In the absence of comprehensive government action, motorcycles have emerged as a vital alternative mode of transportation. Their affordability and manueverability have driven a significant increase in motorcycle ownership across the country. Thus, the demand for motorcycles-for-hire, facilitated by ride-hailing apps has naturally surged as a more accessible and cost-effective option compared to traditional taxis and four-wheeled ride-hailing services. The reality is that while motorcycles present inherent limitations and potential hazards, their widespread use, particularly in developing cities like Bangkok, Jakarta, and Hanoi, highlights their indispensable role in urban mobility. Even in developed cities like Paris, California, and Melbourne, motorcycles fill a critical gap in public transport

systems, serving as efficient feeder services, providing essential end-to-end transport, and, in some cases, being the only mode capable of traversing certain roads. Beyond their transport utility, motorcycles-for-hire offer significant socio- economic benefits by creating substantial employment opportunities for the unskilled workforce. For example, Angkas which is a pioneer in the motorcycle taxi industry, since 2016, legalized and professionalized two-wheeled public transportation. As part of their commitment to road safety, Angkas provides formal training to motorcycle rides, including pre-ride activities and monitoring and maintaining motorcycle performance. They have trained more than 200,000 riders for free, contributing to a reported 99.997% safety record. Since educational attainment is not a qualification for its drivers, this particular Transport Network Vehicle Service (TNVS) sector offers a crucial opportunity for decent and above-average means of income and livelihood for the urban poor who might otherwise face intense competition in the formal labor market. This also highlights the great potential for local motorcycle owners, transport cooperatives, and other groups (e.g., MODAs, TODAs) to organize their own local transport networks for profit and employment in unserved or underserved areas. Despite the rise of these vital services, the regulatory framework remains inadequate. While the LTFRB, by virtue of a Department Order, now regulates four- wheeled TNVS, no corresponding regulation exists for of motorcycles operating as public utility vehicies. Even more so, Republic Act No. 4136, otherwise known as the "Land Transportation and Traffic Code," as amended, does not contemplate motorcycles as public utility vehicles. Similarly, Republic Act No. 7160, otherwise known as the "Local Government Code of 1991," as amended, makes no mention of motorcycles used as public utility vehicles. However, Section 7(q) of Republic Act No. 4163 grants the Commissioner of Land Transportation the discretion to allow the registration of motor vehicles that do not conform to the described regular classification provided therein. In effect, this gives the Department of Transportation (DOTr) the authority to classify a "special" kind of public utility vehicle and allow for its registration without the need for a separate legislation. By necessary implication, the DOTr, through the Land Transportation Franchising Regulatory Board (LTFRB), may also regulate such vehicles. Thus, this bill intends to further amend the Land Transportation and Traffic Code, as amended, and the Local Government Code of 1991, as amended, to formally recognize and regulate motorcycles-for-hire as public utility vehicles and, thereby provide a comprehensive legal framework for their safe and effective operation. Hence, the passage of this bill is earnestly sought. Imee h. Marca IMEER. MARCOS Y

Offer of t TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session JUL 29 P1:05 SENATE RECEIVED G S.B. No. 751 Introduced by SENATOR IMEE R. MARCOS AN ACT RECOGNIZING MOTORCYCLES AS PUBLIC UTILITY VEHICLES, AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 4136, OTHERWISE KNOWN AS THE "LAND TRANSPORTATION AND TRAFFIC CODE," AS AMENDED, AND REPUBLIC ACT NO. 7160, OTHERWISE KNOWN AS THE "LOCAL GOVERNMENT CODE OF 1991", AS AMENDED, 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 " Motorcycles-for-Hire

2 Act."

SEC. 2. Declaration of Policy. - It shall be the policy of the State to provide

5 basic transport services to the people, and safeguard their safety and promote their 6 general welfare. Toward this end, the use of motorcycles-for-hire as an alternative mode of public transportation is hereby recognized and regulated in order to provide mobility in unserved and underserved rural areas, as well as traffic congested urban centers

SEC. 3. Section 3 of Republic Act No. 4136, as amended, otherwise known as

the "Land Transportation and Traffic Code," is hereby amended as follows: "Section 3. Words and phrases defined. - As used in this Act:

XXX (N) MOTORCYCLE-FOR-HIRE - ANY TWO-WHEELED MOTOR VEHICLE USED AS A MEANS OF PUBLIC TRANSPORTATION AND CARGO REGISTERED WITH THE LAND TRANPORTATION OFFICE OR THE LAND TRANSPORTATION FRANCHISING AND REGULATORY BOARD (LTFRB); PROVIDED, THAT FOR TRANSPORTING PASSENGERS, THE MOTORCYCLE SHALL HAVE A MINIMUM ENGINE DISPLACEMENT OF 125 CUBIC CENTIMETERS AND A BACKBONE TYPE BUILT. MOTORCYCLES-FOR-HIRE MAY BE OPERATED INDEPENDENTLY BY THE OWNER OF THE MOTORCYCLE, OR MADE AVAILABLE THROUGH A NETWORK OR DIGITAL TRANSPORT VEHICLE SERVICE (TNVS)."

SEC. 4. Section 7 of Republic Act No. 4136 is also hereby amended to read as

follows: "Sec. 7. Registration Classification. - Every motor vehicle shall be registered under one of the following described classifications: (a) xxx (b) xxx (c) XXX (d) Public utility automobiles; (e) public utility trucks; (f) taxis and auto- calesas; (g) garage automobiles; (h) garage trucks; (0) hire trucks; [and] G) trucks owned by contractors and customs brokers and customs agents L-J; AND (K) MOTORCYCLES-FOR-HIRE. Application for registration

under these classifications shall be accompanied by a certificate of public convenience or a special permit issued by the [Public Service Commission] LAND TRANSPORTATION FRANCHISING AND REGULATORY BOARD (LTFRB), and motor vehicles registered under these classifications shall be subject to the Public Service Law, rules and regulations, as well as the provisions of this Act. FURTHER PROVIDED THAT MOTORCYCLES-FOR-HIRE OPERATING STRICTLY WITHIN THE TERRITORIAL JURISDICTION OF A LOCAL GOVERNMENT UNIT, WHETHER THESE MOTORCYCLES BELONG TO A TRANSPORT NETWORK, OR ARE MEMBERS OF LOCAL COOPERATIVE OR CORPORATION, OR ARE INDIVIDUAL OWNERS/ OPERATORS OF THE MOTORCYCLE, SHALL BE SUBJECT TO THE PROVISIONS OF SECTION 447 (3) (V I) AND SECTION 45 8 (3) (VI) OF REPUBLIC ACT NO. 7160. xXX"

SEC. 5. Section 447 (3) (VI) of Republic Act No. 7160, as amended,

otherwise known as the "Local Government Code of 1991," is hereby amended to read as follows: "XXX (vi) Subject to the guidelines prescribed by the [Department of Transportation and Communications] LTFRB, regulate the operation of tricycles AND MOTORCYCLES-FOR-HIRE AS PUBLIC TRANSPORT OPERATING STRICTLY WITHIN THE TERRITORIAL JURISDICTION OF A LOCAL GOVERNMENT UNIT, WHETHER THESE MOTORCYCLES BELONG TO A TRANSPORT NETWORK, OR ARE MEMBERS OF LOCAL COOPERATIVE OR CORPORATION, OR

ARE INDIVIDUAL OWNERS/ OPERATORS OF THE MOTORCYCLE, and grant franchises for the operation thereof within the territorial jurisdiction of the municipality; XXX"

SEC. 6. Section 458 (3) (VI) of Republic Act No. 7160 is also hereby

amended to read as follows: "XXX (vi) Subject to the guidelines prescribed by the [Department of Fransportation and Communications, ] LTFRB, regulate the operation of tricycles AND MOTORCYCLES AS PUBLIC TRANSPORT OPERATING STRICTLY WITHIN THE TERRITORIAL JURISDICTION OF A LOCAL GOVERNMENT UNIT, WHETHER THESE MOTORCYCLES BELONG TO A TRANSPORT NETWORK, OR ARE MEMBERS OF LOCAL COOPERATIVE OR CORPORATION, OR ARE INDIVIDUAL OWNERS/ OPERATORS OF THE MOTORCYCLE, and grant franchises for the operation thereof within the territorial jurisdiction of the city; XXX"

SEC. 7. Roadworthiness of Motorcycles-for-hire. - The Land

Transportation Office (LTO) shall guarantee the roadworthiness of motorcycles- for-hire by requiring emission testing and other safeguards before registration and every renewal. No modification shall be made thereafter on motorcycles-for- hire, except for the possible installation of luggage carriers, saddlebags, step boards or foot pegs, and appropriate speed limiters and monitoring devices, based on LTO's guidelines.

SEC. 8. Liability and Diligence. - Motorcycles-for-hire are hereby declared

as common carriers for purposes of determining the liability and degree of diligence to be observed in transporting goods or passengers. The presumption of negligence in breach of contract shall likewise apply, as provided in existing laws, rules, and regulations.

SEC. 9. Driver's Safety. - In accordance with Section 23-A of Republic Act

No. 4136, as amended, the LTO shall establish the necessary requirements for issuing driver's licenses to applicants for motorcycles-for-hire, including training theoretical and practical testing and health examinations. Further, safety helmets 11 shall be provided as required by law.

SEC. 10. Insurance. - In addition to driver's and motor vehicle insurance,

the LTO shall require the insurance and coverage for both passengers and cargo 15 transported by motorcyles-for-hire.

SEC. 11. Local Government Units' Duties. - The concerned local

18 government unit (LGU) is urged, before it could issue a franchise under this Act, to develop and issue guidelines for the operation of motorcycles-for-hire in their territorial jurisdiction. These guidelines, subject to the approval of the Department of Public Works and Highways (DPWH), may include the designation of motorcycle lanes on highways, assigned motorcycle parking areas, designated terminals, and such other facilities as may constitute an efficient motorcycle-for-hire transport system.

SEC. 12. Repealing Clause. - All other laws, acts, presidential decrees or

issuances, executive orders, proclamations, administrative orders, ordinances, rules or regulations, or parts thereof contrary to and inconsistent with any 29 provision of this Act are hereby repealed, amended, or modified accordingly.

SEC. 13. Separability Clause. - If any portion or provision of this Act is

declared unconstitutional, any provision not affected thereby shall remain in force and effect.

SEC. 14. Effectivity. - This Act shall take effect after fifteen (15) days

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