Law Summary

1. Amendment of Section One of Republic Act No. 2339

• Legal Principle/Provision: This provision amends Section 1 of Republic Act No. 2339, extending the franchise of the electric light, heat, and power system originally granted to J. V. House and later transferred to the Tacloban Electric Light and Ice Plants Co., Inc.
• Key Definitions Introduced:
  • "Franchise": The legal authorization granted to operate an electric light, heat, and power system.
• Important Requirements or Procedures Outlined:
  • The franchise is extended for a period of twenty-five years from the date of expiration of the existing franchise.
  • The Tacloban Electric Light and Ice Plants Co., Inc. must now adhere to the provisions of Act No. 3636, as amended.
• Relevant Timeframes, Deadlines, or Expiration Details:
  • The extension of the franchise is effective for a period of twenty-five years starting from the expiration date of the original franchise.
• Penalties, Liabilities, or Consequences Mentioned: None explicitly stated; however, the franchise is conditioned upon compliance with relevant laws.

2. Governing Provisions

• Legal Principle/Provision: Post-extension, the operations of the Tacloban Electric Light and Ice Plants Co., Inc. will be governed by Act No. 3636 and not by Act No. 2700, except for specific tax provisions.
• Key Definitions Introduced:
  • "Act No. 3636": The amended law under which the company must now operate.
  • "Act No. 2700": The previous law governing the franchise prior to this amendment.
• Important Requirements or Procedures Outlined:
  • Compliance with the provisions of Act No. 3636 is mandated.
• Relevant Timeframes, Deadlines, or Expiration Details:
  • The transition to Act No. 3636 provisions takes effect immediately upon the franchise extension.
• Penalties, Liabilities, or Consequences Mentioned: Non-compliance with the governing provisions could result in penalties as determined by applicable laws.

3. Tax Provisions

• Legal Principle/Provision: The franchise tax on gross earnings from the operations of the Tacloban Electric Light and Ice Plants Co., Inc. will continue under the provisions of Act No. 2700.
• Key Definitions Introduced:
  • "Franchise Tax": The tax imposed on the gross earnings derived from the franchise operations.
• Important Requirements or Procedures Outlined:
  • The franchise tax remains in effect as stated in Act No. 2700.
• Relevant Timeframes, Deadlines, or Expiration Details:
  • The tax obligations are ongoing and do not expire with the franchise term.
• Penalties, Liabilities, or Consequences Mentioned: The tax is in lieu of any and all other taxes (national, provincial, city, or municipal), indicating that failure to pay could result in additional liabilities.

4. Effectivity of the Act

• Legal Principle/Provision: The Act shall take effect upon its approval.
• Key Definitions Introduced:
  • "Effectivity": The point in time when the provisions of the Act become enforceable.
• Important Requirements or Procedures Outlined:
  • No special procedures are outlined; the Act takes effect immediately upon approval.
• Relevant Timeframes, Deadlines, or Expiration Details:
  • The Act was enacted on June 19, 1960.
• Penalties, Liabilities, or Consequences Mentioned: None explicitly stated concerning the effectivity.

Key Takeaways

• Republic Act No. 2995 extends the franchise of the Tacloban Electric Light and Ice Plants Co., Inc. for an additional 25 years, transitioning its governance to Act No. 3636.
• The franchise tax from Act No. 2700 will remain enforceable, superseding any other forms of taxation.
• The Act is effective immediately upon enactment without requiring Executive approval.