AN ACT GRANTING CONSUELO S. CALALANG A FRANCHISE TO CONSTRUCT

Case Overview and Summary

Summary of Republic Act No. 2290

Granting of Franchise
- Consuelo S. Calalang is granted a franchise to construct, operate and maintain an ice plant and cold storage in the Municipality of Hagonoy, Province of Bulacan. (Section 1)
- She can manufacture and distribute ice, and supply cold storage services. (Section 1)
- The rates and prices for ice and cold storage services are subject to regulation by the Public Service Commission or its legal successor. (Section 1)

Limits and Requirements
- The grantee shall manufacture and supply ice up to the limit of the capacity of her plant, as determined by the Public Service Commission. (Section 2)
- The apparatus and appurtenances used must be modern, safe and first-class, and the grantee must change or alter them at her expense if required by the Public Service Commission. (Section 3)

Conditions for Exercising the Franchise
- The grantee must file the following with the Public Service Commission within 120 days from the approval of the Act: (Section 4)
    1. Written acceptance of the terms and provisions of the Act.
    2. Written acceptance of the terms and conditions of the certificate of convenience and public necessity.
    3. A document evidencing receipt of the required deposit by the Treasurer of the Philippines as an earnest proof of good faith and guaranty.
- If the grantee fails to commence operations within the period fixed by the Public Service Commission, unless prevented by force majeure or other causes beyond her control, the Commission may declare the certificate null and void, and the deposit forfeited. (Section 4)

Construction and Commencement of Operations
- After complying with the requirements, the Public Service Commission shall authorize the construction of necessary work within a reasonable time. (Section 5)
- If the grantee violates the provisions regarding commencement and/or completion of work, the Commission shall declare the bond or bonds forfeited as liquidated damages to the National Government. (Section 5)
- The deposit shall be returned to the grantee, with interest or dividends, upon satisfactory completion of the authorized work. (Section 5)

General Provisions
- The franchise is subject to the provisions of the Constitution, Commonwealth Act No. 146 (as amended), and Act No. 1459 (as amended). (Section 6)
- The franchise is subject to amendment, alteration or repeal by the Congress of the Philippines when public interest requires it. (Section 6)
- The Public Service Commission shall prescribe that the certificate of convenience and public necessity is valid only for a definite period, and its violation shall cause immediate cancellation. (Section 6)
- The grantee's books, records, and accounts shall be open to inspection by the municipal treasurer, and the grantee must submit quarterly reports showing gross receipts. (Section 7)
- The grantee may sell, lease, grant, convey, assign, give in usufruct or transfer the franchise and acquired property and rights, with the approval of the Congress of the Philippines, and subject to compliance with terms and conditions by the transferee. (Section 8)
- The Public Service Commission may declare the forfeiture of the franchise for failure to comply with terms and conditions, unless caused by force majeure or other causes beyond the grantee's control. (Section 9)
- If a competing franchise has more favorable terms, those terms shall automatically become part of this franchise. (Section 10)
- The Act shall take effect upon its approval. (Section 11)