Law Summary

Purpose of the Act

This Act grants Felireo Palafox and Julio Benemerito a franchise to establish and operate an ice plant and cold storage facility in Pasuquin, Ilocos Norte, and engage in the sale and distribution of ice and cold storage services in the municipalities of Pasuquin, Bacarra, and Vintar.

• Key Definitions:
  • Franchise: The right, privilege, and authority granted to operate an ice plant and cold storage.
  • Grantee: Felireo Palafox and Julio Benemerito, the individuals awarded the franchise.

Authority Granted

The grantees are authorized to construct, operate, and maintain the ice plant and cold storage for a period of 25 years.

• Important Requirements:
  • Compliance with the terms of this Act, Act No. 3636 (amended), and the Constitution.
  • Establishment of a schedule of prices and rates for services, subject to regulation by the Public Service Commission.

Capacity and Equipment Standards

The grantees must manufacture ice up to the capacity determined by the Public Service Commission, ensuring that all apparatus used is modern and safe.

• Requirements:
  • Equipment must be first-class in quality.
  • Changes or alterations to equipment may be required by the Public Service Commission at the grantees' expense if deemed necessary for public interest.

Commencement of Operations

The grantees must start manufacturing and distributing ice and providing cold storage services within one year from the approval of the Act.

• Deadline:
  • One year from the date of approval (August 4, 1969).
• Consequences:
  • Failure to commence operations within the specified timeframe, unless due to force majeure or other uncontrollable circumstances, results in the franchise becoming null and void.

Compliance and Amendments

The franchise is subject to the provisions of the Constitution and Commonwealth Act No. 146, and can be amended, altered, or repealed by Congress for public interest.

• Regulatory Framework:
  • Compliance with existing laws and regulations is mandatory.

Tax Obligations

The grantees are required to pay a tax equal to 5% of their gross income as a condition of the franchise.

• Financial Obligation:
  • 5% tax on gross income must be remitted.

Effectivity

The Act shall take effect upon its approval.

• Enactment Date:
  • August 4, 1969, enacted without Executive approval.

Key Takeaways

• Felireo Palafox and Julio Benemerito are granted a 25-year franchise for an ice plant and cold storage in Ilocos Norte.
• Operations must begin within one year, or the franchise will lapse.
• Compliance with public service regulations and a 5% tax on gross income are required.
• The franchise is subject to amendments or repeal by Congress in the interest of the public.