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ANNEX A PROPOSED BILL

SEVENTEENTH CONGRESS OF THE )


REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

H.B. No. ____

Introduced by Rep. ______

AN ACT REGULATING ACCOMMODATION-SHARING,


IMPOSING AND AUTHORIZING FEES, PROVIDING PENALTIES
FOR VIOLATIONS THEREOF AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in the
Congress assembled:
TITLE I

PRELIMINARY PROVISIONS

SECTION 1. Short Title This Act shall be known as the Accommodation-Sharing Code.

SECTION 2. Declaration of Policy It is hereby declared that the State shall legally recognize
and promote the practice of accommodation-sharing, as it serves the public interest, provides
ordinary home or property owners a means of income and gives the consumer public less
expensive alternative accommodations. But, at the same time, the State sees a need to place
parameters on such arrangement for purposes of affording protection to the rights of the parties,
taking into account the essential roles of Internet-based companies that facilitate these
accommodation-sharing transactions.

SECTION 3. Scope of the Law The applicability of the law expressly excludes rooms in a
hotel, resort and apartment hotels, as defined under the National Accommodation Standards
issued by the Department of Tourism, and other accommodation establishments, such as tourist
inn, pension house, motorist hotel, as defined under the 1992 Rules and Regulations on the
accreditation of hotels and other accommodation establishments.

SECTION 4. Definition of Terms As used in this Act:


(a) Online Application refers to a program, software, website, or system that can be

accessed through the Internet.1

(b) Accommodation-sharing Host or Host refers to a person or an entity, who is either

an owner, lessee, usufructuary of an accommodation unit, or any other authorized person

by the owner, that allow another to enter, use and enjoy the accommodation unit for a fee

and a certain period.

(c) Accommodation-sharing Guest or Guest refers to a person who enters, uses and

enjoys an accommodation unit to connect and enter into a contract with a host and other

related services of a host for a fee.

(d) Accommodation Unit refers to a residential space, room and condominium unit, entire

home, or other real estate improvement used in accommodation-sharing contracts. This

excludes rooms in a hotel, resort and apartment hotels, as defined under the National

Accommodation Standards issued by the Department of Tourism, and other

accommodation establishments, such as tourist inn, pension house, motorist hotel, as

defined under the 1992 Rules and Regulations on the accreditation of hotels and other

accommodation establishments.

(e) Active Online Platforms refers to online accommodation-sharing platforms that are

actively participating and offering Internet intermediary services to the transactions of

hosts and guests, to the extent that they exercise control over the data and content on their

Internet-enabled software or application.

1
Michael A. Tantoco, Jr., Examining The Place Of Ridesharing Platforms Under Philippine Law, And Providing
For Their Classification And Regulation,
(f) Listing refers to an accommodation unit that is posted and published by a host as

available for booking through an online platform.

(g) Online Accommodation-sharing Platform or Online Platform refers to a person or

entity, whether a corporation, partnership or other form, operating in the Philippines and

provides Internet intermediary services to both hosts and guests for a fee, commission or

any other consideration using an online-enabled application, website or system.

(h) Online Application refers to an Internet-based software program used by online

accommodation-sharing platforms in facilitating the transactions between hosts and

guests.2

(i) Passive Online Platform refers to online accommodation-sharing platforms that offer

technical, automatic and passive Internet intermediary services to hosts and guests.3

SECTION 5. Accommodation-sharing Contract Defined Accommodation-sharing is a


contract, facilitated by an online platform, whereby one party binds himself to allow another to
enter, use or enjoy his accommodation unit, where he is either residing or absent therein, for a
price certain and for a definite period.

SECTION 6. Accommodation-sharing Relationship Defined Accommodation-sharing


relationship is a juridical tie that arises between a host and a guest once they agree, expressly or
impliedly, to share the use and enjoyment of an accommodation unit, for a fee and for a definite
period. The provisions of Title VIII of the New Civil Code on Lease Contracts shall govern the
relationship between hosts and guests. The provisions on warranties under the Title on Sales of
the same Code, which are applicable to lease contracts, shall likewise apply to accommodation-
sharing transactions between hosts and guests.

TITLE II
DUTIES OF HOSTS

2
Techopedia, Web-based Application, https://www.techopedia.com/definition/26002/web-based-application (last
accessed July 12, 2017).
3
Rosalie Koolhoven, Evert Neppelenbroek, Santamaria Echeverria & Verdi, supra note Error! Bookmark not
defined., at 26.
SECTION 7. DOT Accreditation of Hosts The Department of Tourism shall have the duty to
promulgate rules and regulations prescribing the minimum standards, conditions and other
requirements necessary for the issuance of the Certificate of Host Accreditation.

SECTION 8. Licensing from Local Governments It shall be unlawful for any person to
operate as an accommodation-sharing host and rent out an accommodation unit through the
online platforms without first securing a license from the city or municipal government having
jurisdiction over the accommodation units.

All the local government units (LGUs) shall fix the annual license fees to be imposed on
accommodation-sharing hosts, considering the number of properties listed, the minimum rentals
paid by consumer guests and other considerations as may be deemed necessary by the LGU.

SECTION 9. Illegal Hosting or Accommodation-sharing It shall be unlawful for any person


or entity to engage in accommodation-sharing transactions or to list their properties for
accommodation-sharing services through the online platforms, without obtaining prior DOT
accreditation and licensing from their respective LGUs.

Prior to registration as a host of an online platform and before being able to list a property
for accommodation-sharing, a person or entity shall present and submit proofs of accreditation
and licensing to the online platforms.

SECTION Liability for Property of Guests4 No host is liable to make good to a guest loss of
or injury to goods or property brought to the accommodation unit, except if the goods or property
have been:

(a) stolen, lost or injured through the willful act, default or neglect of the host or the hosts
servant; or
(b) deposited expressly for safe custody with the host, except that in case of the deposit, the
host may require as a condition of liability that the goods or property be deposited in a
box or other receptacle, fastened and sealed by the person depositing the goods or
property.

If the vehicle of a guest has been delivered to the custody of the host or the hosts servant
expressly for storage or parking in a place specifically reserved and designated by the host for
the storing or parking of vehicles, the liability of the host is that of a bailee for reward.

A host shall

SECTION Refusal or Failure to Receive Property of Guests for Safekeeping 5 If a host


refuses to receive for safe custody, as mentioned, goods or property of a guest, or if a guest,
through a default of the host, is unable to deposit the goods or property, the host is not entitled to

4
http://www.bclaws.ca/civix/document/id/complete/statreg/96206_01#section3
5
http://www.bclaws.ca/civix/document/id/complete/statreg/96206_01#section3
the benefit of this Act for the loss of or injury to the goods or property unless the host proves that
the host was not equipped with a proper safe or vault or did not have a place for the storing or
parking of vehicles and that the host informed the guest at the time of refusing or failing to
receive the goods or property.

Articles 2000 to 2003 of the Civil Code on hotelkeeper or innkeepers liability for properties of
guests shall likewise apply to hosts liability for properties of guests.

TITLE III
DUTIES OF ONLINE PLATFORMS

SECTION 10. Intermediary Liability of Active Online Platforms for Illegal Accommodation-
sharing of Hosts An online platform shall be held liable if a host engages in an
accommodation-sharing transaction through the online platform, without prior DOT
accreditation and licensing requirements from their LGUs, where the online platform actively
and knowingly participates, facilitates and monitors the transactions between hosts and guests, to
the extent that the online platforms have control over the content and data posted on their online
platforms.

SECTION 11. Host Accreditation from Active Online Platforms An online platform that
actively participates, facilitates and offers intermediary services to the accommodation-sharing
transactions of hosts and guests shall be liable for accrediting persons or entities that are not
eligible, suitable and fit to deliver accommodation-sharing services.

These online platforms shall not allow persons or entities to operate as accommodation-sharing
hosts through the online platforms, without the required DOT accreditation and licensing from
their respective LGUs.

SECTION 12. Intermediary Liability of Passive Online Platforms for Illegal Accommodation-
sharing of Host An online platform shall not be held liable for the act of host in engaging in an
accommodation-sharing transaction through the website or application of the online platform,
without prior DOT accreditation and licensing requirements from their LGUs, if the conduct and
services offered by the online platform are merely technical, automatic and passive.6

However, when such online platform benefits from the illegal accommodation-sharing
transactions of hosts, then the online platform shall be held liable if the following circumstances
concur:

(a) the online platform has received a notice that a host operates through the online
platforms without the necessary DOT accreditation and licensing requirements from
their LGUs;
(b) the online platform has the right and ability to control the content and activities of the
hosts in their websites or applications; and
(c) the online platform fails to remove or deny access to the profile of the host or the
content posted by such host within (72) hours.
6
Id.
SECTION 13. Complaint and Dispute Resolution Mechanisms It shall be the duty of the
online platforms to have complaint and dispute resolution mechanisms in case a problem arises
between the two parties. Active online platforms shall provide minimum assistance to hosts and
guests for any complication or problem arising from their accommodation-sharing transactions.

SECTION 14. Nondiscrimination Policy An online platform is obliged to ensure that their
websites or applications are not encouraging, contributing or promoting any discriminatory
feature, content, information on their online-enabled application or website, pursuant to existing
laws against discrimination.

SECTION 15. Data Privacy An online platform shall ensure that its online-enabled
application or website is compliant with the provisions of the Data Privacy Act and other laws,
rules or regulations in furtherance of the protection of information of hosts, guests and other third
parties.
SECTION 16. Copyright Policy An online platform shall adopt copyright policies in their
online-enabled application, website or system, ensuring compliance with existing copyright laws.

TITLE IV
PENALTIES

SECTION 17. Cancellation of Host Accreditation Any willful violation of a host of the
provisions of this Act shall be a ground for the cancellation of a DOT Host Accreditation, subject
to notice and hearing.

SECTION 18. Penalties; Hosts Any violation or noncompliance by a host with the provisions
of this Act shall be punished as follows:

(a) First Offense: A fine of Five Hundred Pesos (P5000.00)

(b) Second Offense: A fine of Five Thousand Pesos (P10,000.00)

(c) Third Offense: A fine of Fifteen Thousand Pesos (P15,000.00)

(d) Fourth Offense: Suspension or cancellation of a DOT Host Accreditation, depending

upon the finding of willfulness in violating the provisions of this Act.

SECTION 19. Penalties; Online Platforms Any violation or noncompliance by an online


platform with the provisions of this Act shall be punished as follows:

(a) First Offense: A fine of Ten Thousand Pesos (P10,000.00)

(b) Second Offense: A fine of Twenty Thousand Pesos (P20,000.00)


(c) Third Offense: A fine of Fifty Thousand Pesos (P50,000.00)

TITLE V
FINAL PROVISIONS

SECTION 20. Funding The implementation of the provisions of this Act shall be immediately
included in the programs of the DOT, the funding of which shall be included in their annual
submissions for inclusion in the General Appropriations Act.

SECTION 21. Implementing Rules and Regulations Within sixty (60) days from the
effectivity of this Act, the DOT and the LGUs shall promulgate the necessary rules and
regulations for the effective implementation of this Act.

SECTION 22. Separability Clause If any part of this Act is declared unconstitutional or
invalid, the rest of the provisions of this Act shall continue to be in full force and effect.

SECTION 23. Repealing Clause All laws, decrees, executive orders, issuances, rules and
regulations or parts thereof inconsistent with this Act are hereby repealed or amended
accordingly.

SECTION 24. Effectivity Clause This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in at least two (2) national newspapers of general
circulation.