AN ACT AMENDING REPUBLIC ACT NUMBERED THIRTY-TWO HUNDRED FORTY-SEVEN

Case Overview and Summary

Summary of Republic Act No. 3570

Granting of Franchise:
- Grants Cagayan Electric Power and Light Co., Inc. the right, privilege, and authority to construct, maintain, and operate an electric light, heat, and power system for generating and distributing electric light, heat, and power for sale within the municipalities of Tagoloan and Opol in Misamis Oriental, and in Cagayan de Oro City and its suburbs for a period of 50 years from the date of approval. (Section 1)
- Allows the grantee to install, lay, and maintain poles, wires, transformers, capacitors, overhead protective devices, pole line hardware, and other necessary equipment on streets, public thoroughfares, bridges, and public places within the covered areas. (Section 1)

Franchise Tax:
- The grantee shall pay a franchise tax equal to 3% of the gross earnings from electric current sold under this franchise. (Section 3)
- 2% of the franchise tax goes to the National Treasury, and 1% goes to the treasury of the Municipality of Tagoloan, Municipality of Opol, and Cagayan de Oro City, as applicable. (Section 3)
- The 3% franchise tax on gross earnings is in lieu of all taxes and assessments of any authority upon privileges, earnings, income, franchise, and poles, wires, transformers, and insulators of the grantee, from which the grantee is expressly exempted. (Section 3)

Effective Date:
- The Act shall take effect upon its approval. (Section 3)