Republic Act No. 5044

Law Summary

Overview

Republic Act No. 5044 amends Republic Act No. 4194 which originally granted Pio Romeo Garcia a franchise to construct, maintain, and operate ice plants and cold storage facilities, and to distribute and sell the manufactured ice in specified cities and municipalities.

Title Amendment

Legal Principle/Provision: The title of RA 4194 is amended.
Key Definitions Introduced: The title now encompasses additional provinces.
Important Requirements or Procedures Outlined: The new title includes Laguna, Batangas, and Quezon along with the original cities and municipalities.
Relevant Timeframes, Deadlines, or Expiration Details: The amendment takes effect immediately upon approval.
Penalties, Liabilities, or Consequences Mentioned: None specified in this section.

• The title now reads: “An Act granting Pio Romeo Garcia a franchise to construct, maintain and operate ice plants and cold storage, to distribute and sell ice so manufactured and furnish cold storage in the cities of Pasay, Caloocan, Quezon, and Manila, and in the provinces of Rizal, Laguna, Batangas, and Quezon.”

Grant of Franchise

Legal Principle/Provision: The franchise is granted for a period of twenty-five years.
Key Definitions Introduced: "Grantee" refers to Pio Romeo Garcia and his successors or assigns.
Important Requirements or Procedures Outlined: The grantee is authorized to collect rates, prices, and charges, which are subject to regulation.
Relevant Timeframes, Deadlines, or Expiration Details: The franchise lasts for twenty-five years post-approval.
Penalties, Liabilities, or Consequences Mentioned: The franchise can become void if conditions are not met.

• The grantee can:

Construct, maintain, and operate ice plants and cold storage.
Sell and distribute ice manufactured.
Collect rates, subject to Public Service Commission regulation.

Installation and Production Capacity

Legal Principle/Provision: The grantee must install ice plants and cold storage within specified jurisdictions.
Key Definitions Introduced: "Total daily production capacity" refers to the limit on ice production.
Important Requirements or Procedures Outlined: The total production capacity is limited to 2,000 tons of ice and 10,000 tons of cold storage.
Relevant Timeframes, Deadlines, or Expiration Details: No specific deadlines mentioned for installation.
Penalties, Liabilities, or Consequences Mentioned: Failure to comply with capacity limits may affect the franchise.

• Production limits:

Ice plants: Maximum of 2,000 tons daily.
Cold storage: Maximum of 10,000 tons total.

Commencement of Operations

Legal Principle/Provision: The grantee must commence operations within a specified timeframe.
Key Definitions Introduced: "Force majeure" includes acts of God and other uncontrollable events.
Important Requirements or Procedures Outlined: Operations must begin within five years of the amendatory act's approval.
Relevant Timeframes, Deadlines, or Expiration Details: Five-year deadline to commence manufacture of ice.
Penalties, Liabilities, or Consequences Mentioned: Failure to commence operations results in the franchise becoming null and void.

• The franchise is void if:

Ice production does not start within five years.
Prevented by force majeure or other uncontrollable events.

Effectivity

Legal Principle/Provision: The act takes effect upon approval.
Key Definitions Introduced: None specified in this section.
Important Requirements or Procedures Outlined: Immediate effectivity upon approval without Executive approval.
Relevant Timeframes, Deadlines, or Expiration Details: The act was enacted on June 17, 1967.
Penalties, Liabilities, or Consequences Mentioned: None specified.

Key Takeaways

Franchise Scope: Expanded to include additional provinces.
Production Limits: Strict capacity limits imposed on operations.
Operational Deadline: Five-year timeframe to commence ice production.
Regulatory Oversight: Rates and charges subject to Public Service Commission regulation.
Nullification Clause: Franchise void if operational conditions are not met within specified timeframes.

This structured summary encapsulates the significant provisions and legal implications of Republic Act No. 5044, ensuring clarity and adherence to the original text.