Question & AnswerQ&A (Republic Act No. 4496)
The main purpose of Republic Act No. 4496 is to grant Tobias P. Marcelo or his successors a franchise to construct, maintain, and operate an ice and cold storage plant or plants in the City of Manila and Rizal Province for public use, and to sell the produce of the ice plants in these areas.
The Public Service Commission has the authority to regulate the rates charged by the grantee for ice sales and cold storage services.
The grantee must manufacture and supply ice up to the productive capacity of the installed ice plants and provide cold storage service up to the total installed capacity.
All equipment and appurtenances used must be modern, safe, and first class. The grantee must change or alter any equipment if the Public Service Commission determines, after notice and hearing, that public interest reasonably requires it.
The franchise is valid for twenty-five years from the approval of the Act, subject to certain conditions regarding construction and operation.
The franchise shall become null and void if the grantee or his successors do not start construction within two years or complete and commence operation within four years from the approval of the Act, except in cases of force majeure or other uncontrollable causes.
The provincial treasurer of Rizal, the city treasurer of Manila, or their authorized representatives can inspect the books, records, and accounts of the grantee.
The grantee must submit quarterly reports in duplicate showing the gross receipts for the past calendar quarter, one copy of which is sent to the Auditor General for filing.
The jurisdiction of the PSC is limited to fixing rates and enforcing equipment standards as specified, but Congress retains the power to amend, alter, or repeal the franchise as public interest requires.
Any more favorable condition granted to a competing franchise automatically becomes part of this franchise and operates equally in favor of the grantee.
Yes, with the approval of Congress, the franchise may be transferred or assigned to any individual or juridical entity qualified under Commonwealth Act No. 146, as amended.
The grantee must pay a franchise tax equal to five percent of gross earnings, where three percent accrues to the National Government and two percent to the city or municipality where the franchise operates.
This Act took effect upon its approval on June 19, 1965.