Republic Act No. 4063

Legal Principle: Lazatin Incorporated is granted a franchise to construct, maintain, and operate a water supply system in the barrios of San Jose and Santo Domingo, Angeles City, for a period of twenty-five years.
Key Definitions:
- Grantee: Lazatin Incorporated, herein referred to as the recipient of the franchise.
Requirements:
- The grantee must comply with Commonwealth Act No. 146 and the Constitution.
- Obtain a certificate from the Public Service Commission (PSC) showing public necessity within three months of the Act's approval.
Consequences: Failure to file for the certificate results in the franchise becoming null and void.

Legal Principle: The grantee is authorized to construct and operate various components of the water supply system.
Key Details:
- Rights to install water mains, pipes, conduits, reservoirs, and dams on duly acquired land.
- Right to supply and sell water for domestic and manufacturing uses.
- The price schedule for water is subject to PSC regulation.
Procedures:
- Must purify water sources with Bureau of Health Services approval.

Legal Principle: The grantee can acquire land necessary for system construction.
Key Requirements:
- Obtain land through grant, lease, or purchase.
- May initiate expropriation proceedings in competent court if necessary.
Timeframes: None specified for this provision.

Legal Principle: Specific installation standards for water mains and pipes are mandated.
Key Details:
- Mains must be buried at least 45 cm below ground in the strong-material zone.
- Above-ground installation is allowed under certain conditions.
Procedures:
- Changes to mains must follow PSC directives to avoid interference with public utilities.

Legal Principle: The grantee must maintain public thoroughfares post-installation.
Key Requirements:
- Replace sidewalks and restore public thoroughfares post-construction.
Consequences: Failure to comply may lead to penalties as dictated by the PSC.

Legal Principle: The grantee accepts liability for damages to city property or individuals due to negligence.
Key Details:
- Must compensate the city for damages resulting from non-compliance.

Legal Principle: The grantee must formally accept the franchise and begin work within stipulated timeframes.
Key Timeframes:
- Must accept the franchise within 120 days after obtaining PSC certification.
- Work must commence within six months and be completed within eighteen months.
Penalties: Failure to comply results in forfeiture of a cash deposit made as a guaranty.

Legal Principle: The grantee must pay a percentage of gross earnings to the city and file periodic financial reports.
Key Requirements:
- Pay 3% of gross earnings for the first 15 years, 2% for the remaining 10 years.
- Submit biannual financial reports to the city treasurer.

Legal Principle: The grantee cannot transfer the franchise without congressional approval.
Key Details:
- Any lease or sale requires filing an agreement with the Secretary of Public Works.
Emergency Clause: The government can take over the system during national emergencies.

Legal Principle: The PSC has the authority to declare forfeiture of the franchise for non-compliance.
Procedures:
- Interested parties may be heard before a forfeiture is declared.

Legal Principle: Upon termination of the franchise, rights revert to the respective government units.
Key Details: All lands and rights acquired under the franchise revert to the original owners upon termination.

Legal Principle: The franchise is subject to amendment or repeal by Congress in the public interest.
Timeframes: None specified for amendments.

Legal Principle: This Act takes effect upon approval, which occurred on June 18, 1964.

Lazatin Incorporated has a 25-year franchise to manage a water supply system in Angeles City, requiring PSC regulation and adherence to public safety standards.
Significant timeframes include obtaining necessary certifications and commencing operations within specified periods.
The franchise includes financial obligations to the city, liability for damages, and restrictions on transferability.
Compliance failure can lead to penalties, including forfeiture of the franchise.