House approves Motorbikes for Hire Bill in 2nd reading

THE House of Representatives approved the law on motorcycles for rent in second reading on Tuesday.

House Bill 10571 states that “a motorcycle intended for use as a rental motorcycle must be duly registered with the Land Transportation Bureau (LTO) in accordance with the requirements set forth in Section 7 of this Act.”

“The LTO must ensure the technical control of all rental motorcycles before their registration or any renewal thereof”, indicates article 6 of the bill.

Section 7 of the bill directs the Department of Transportation (DoTr) to, on the recommendation of the Department of Trade and Industry – Philippine Bureau of Standards (DTI-BPS) and LTO, “to prescribe the standards and the specifications of motorcycles which may be permitted to operate as rental motorcycles, taking into account the safety of riders and passengers.”

“The franchise of rental motorcycles in metropolitan and urbanized areas with an existing and operational TNC or EPPO is entrusted to the Land Transportation Franchising and Regulatory Board (LTFRB). The LTFRB sets out in the franchise granted to operators, the terms and conditions to be respect in the operation of rental motorcycles. This franchise must allow the operator to engage in a multi-homing operation after accreditation with other TNCs or EPPOs”, stipulates article 8 of the bill.

TNC stands for Transportation Network Company. EPPO stands for Online E-Commerce Platform Provider.

Section 8 of the bill directs the LTFRB to determine, in coordination with the relevant local government unit (LGU) in a province, city or town, “the number of units and areas of operation, or of routes, if any, of motorcycles-for-hire in accordance with the route rationalization plan or studies established by the “DoTr.

The same Article 8 provides that in determining the number of rental motorcycles to be operated by TNCs and EPPOs, “the demand for their services shall be the basis for the” Ltfrb in granting the franchise.

The bill states that in locations outside of metropolitan areas or regional centers and where there is no TNC or EPPO, “the franchise application must be submitted to the LGU under which the rental motorcycle intends to operate: provided, that a motorcycle for hire can only be operated within the territorial jurisdiction of the relevant LGU: provided, further, that LGUs can recommend the appropriate number of units that may be authorized to operate in their respective jurisdictions based on demand in the locality.”

Article 9 of the bill lists the requirements for the issuance of a certificate of public utility (CPC).

The requirements for issuing a CPC are as follows: proof of Philippine citizenship; “Proof of accreditation by a TNC or EPPO for rental motorcycles under the digital platform or business license issued by the relevant city or municipality for rental motorcycles not operating under a TNC or EPPO;” registration certificate issued by the LTO; “A suitable space to serve as a garage for a franchise applicant who intends to operate three (3) or more rental motorcycles;” “Insurance coverage for any death or injury that may occur to a driver, passenger or any third party or damage to property due to or in connection with its operation;” and “Tax identification number or common carrier registration certificate issued by the Bureau of Internal Revenue (BIR), if applicable.”

Clause 10 of the bill directs the LTO to “promulgate the necessary directives setting out the requirements for the issuance of a professional driver’s licence, including the contents of the theoretical and practical examinations appropriate to the operation of a motorcycle of rental”.

Under the bill, only drivers with professional driving licenses are allowed to drive rental motorcycles.

Section 10 of the Bill also requires the LTO to “conduct a program of continuing safety training for approved rental motorcycle riders with a curriculum” certified by the Technical Education and Skills Development Authority (Tesda). Under the bill, licensed riders are required to attend at least one safety training seminar each year.

Article 11 of the bill deals with accreditation requirements for TNCs and EPPOs.

Article 12 of the bill states that “motorcycles for rent may be authorized to operate using digital reservation platforms or designated terminals. To maximize its operation, motorbikes for rent must not be bound by a only TNC or EPPO, but must be permitted to take a multi-lodging approach within a particular area of ​​operation under the given franchise: provided that a rental motorcycle accredited under a TNC or EPPO platform is not permitted to operate as a motorcycle for rent without using this platform.”

Article 12 of the bill also specifies that “the capacity, nature and character of the goods that can be transported” and “the dimensions of the motorcycle rack or the luggage rack of rental motorcycles” are determined by the Ltfrb “in accordance to the standards and specifications provided for in Article 7.

“Tariffs, surcharges and other freight charges that may be charged by Operators, EPPOs or TNCs shall be in accordance with the tariff structure and within the parameters determined, prescribed and issued by the LTFRB, in consultation with the rental motorcycle.and subject to DOTr approval.The pricing structure must reflect supply and demand for motorcycle rental services and must allow for dynamic pricing based on market variations based on location The rate structure should also include the maximum percentage that TNCs or EPPOs may charge operators or passengers on shipping or delivery charges The LTFRB periodically reviews the rate structure and parameters of determination of applicable tariffs, subject to DOTr approval”, clause 13 of the bill states.

Also, the bill requires that the reservation system of TNCs and EPPOs include a mechanism allowing customers to “compare the cost of transport charged by each of the digital platforms available”.

“In the case of rental motorcycles operating outside of digital platforms, the rate is determined by the LTFRB after public consultation with LGUs and operators and other stakeholders, with the approval of the DOTr”, Article 13 of the bill States.

Section 15 of the bill states that the operator and the TNC or EPPO providing the digital platform when death, personal injury or property damage has occurred during the use of a rental motorcycle “shall be jointly and severally liable, with the right of subrogation against any party at fault: provided, that the liability of TNC or EPPO does not exceed the amount of the operator’s insurance coverage.”

Section 16 of the bill requires each TNC or EPPO to have a rapid response team “to provide immediate medical attention” or bring in anyone injured from the operation of the rental motorcycle that has been booked through its digital platform to the nearest medical facility or hospital.

Clause 16 of the bill also requires that a function allowing the passenger or driver to alert the rapid response team in the event of an emergency or traffic accident be part of the application options of reservation of digital platforms.

“Where applicable, the TNC or EPPO will advance any amount necessary for the admission of the injured person(s) to a hospital or medical facility up to the maximum amount insured”, specifies article 16 of the draft law.

Clause 18 of the bill provides penalties for prohibited acts.

Under the bill, a driver “who operates a rental motorcycle in violation of traffic rules and regulations, load capacity and license requirements” will be punished with “the maximum penalty imposed under the applicable law, ordinance, rule or regulation for such violation.” The bill states that the LTO must also “impose a penalty of suspension or revocation of an offending driver’s license commensurate with the seriousness of the offense and the frequency of the commission.”

The bill stipulates that an operator who allows a driver who does not have a valid professional driving license to drive a rental motorcycle “incurs, in addition to the penalties provided for by the laws and regulations in force, a penalty of suspension or revocation of deductible, after due notice and hearing.”

The criminal provisions of Republic Act (RA) 7394 (the Consumer Law) and RA 10173, “where applicable, apply to acts or omissions committed in the course of the operation of a motorcycle. rental,” the bill also says.

Article 20 of the bill states that “the authority and accreditation granted to existing TNCs, EPPOs and operators shall continue to be effective until their expiration or six (6) months from the promulgation of the rules and regulations” to be issued under its Section 21, “whichever comes last.”

Section 21 of the bill states that within 90 days “from the coming into force of this Act”, the DoTr shall, in coordination with the Ltfrb, LTO, DTI-BPS, Department of information and communications technology, the BIR, Tesda, the Department of Health, the Ministry of Interior, the Metropolitan Manila Development Authority and the Philippine National Police-Highway Patrol Group, and in consultation with stakeholders, “promulgate rules and regulations for the effective implementation of this Act”.

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