QuestionsQuestions (Republic Act No. 4608)
RA 4608 grants Manuel B. Soriano the right, privilege, and authority to construct, maintain, and operate an ice plant and cold storage. It is applicable in the Municipality of Barotac Nuevo, Province of Iloilo.
The franchise is granted for a period of twenty-five (25) years from the approval of RA 4608.
It is for manufacturing ice for distribution and sale, supplying cold storage therein, and charging and collecting rates as authorized under the franchise.
RA 4608 is expressly subject to Commonwealth Act No. 146, as amended.
The Public Service Commission (or its legal successor) regulates the schedule of prices and rates. The schedule “shall at all times be subject to regulation” by the PSC.
The PSC determines the limit of the plant’s capacity. The grantee must manufacture and supply ice up to that limit.
All apparatus and appurtenances must be modern, safe, and first class in every respect.
Whenever the PSC determines that public interest reasonably requires it, the grantee must change or alter the apparatus at the grantee’s expense.
The grantee must commence construction within two (2) years from approval of the Act, unless prevented by force majeure and other enumerated causes. If not, the franchise becomes null and void.
The exceptions include: act of God or force majeure; martial law; riot; civil commotion; usurpation by a military power; or any other cause beyond the grantee’s control.
It allows amendment, alteration, or repeal by Congress when the public interest so requires. The franchise is expressly granted with that understanding and condition.
Books, records, and accounts must always be open to inspection of the Auditor General or authorized representatives. The grantee must submit quarterly reports in duplicate showing gross receipts for the quarter just past.
The grantee must pay a franchise tax equal to 5% of gross earnings under the franchise—3% accrues to the National Government and 2% to the municipality where the franchise is operated.
The text provides that the rates schedule is subject to PSC regulation at all times, implying compliance is mandatory. Noncompliance would violate the franchise’s statutory conditions, exposing the grantee to regulatory sanctions and possible grounds for enforcement consistent with the franchise and applicable laws (including CA 146 as amended).
RA 4608 takes effect upon its approval.
RA 4608 creates a franchise subject to public regulation: (1) PSC regulates price/rates, (2) PSC sets capacity limits for ice manufacturing, and (3) PSC may require equipment modernization/alterations based on public interest.