AN ACT TO AMEND REPUBLIC ACT NUMBERED THIRTY HUNDRED AND FOURTEEN

Case Overview and Summary

Summary of Republic Act No. 3829

Granting of Franchise
- Grants Romulo V. Ramos the right, privilege, and authority to construct, maintain and operate an electric light, heat and power system for 50 years from the approval of this Act. (Section 1)
- Covers the municipalities of Sta. Cruz, Digos, Bansalan, Padada, Malalag, Hagonoy, and Lower Montano, all in Davao province. (Section 1)
- Allows the grantee to install necessary equipment on streets, public thoroughfares, bridges, and public places within the covered areas. (Section 1)

Relationship with National Power Corporation
- If the grantee purchases electric light and power from the National Power Corporation, the latter is authorized to negotiate and transact for the benefit of public consumers regarding rates. (Section 2)
- If the National Power Corporation establishes lines in adjacent areas, it can make available its light, heat, and power only after negotiation with and through the grantee or the corporation to which the grantee assigns the franchise, with the grantee's authority and consent. (Section 2)

Franchise Tax
- The grantee shall pay a franchise tax equal to 2% of the gross earnings for electric current sold under this franchise. (Section 4)
- The franchise tax of 2% of the gross earnings as provided in the original franchise granted by the Municipality of Santa Cruz, Davao Province, shall be respected. (Section 4)
- No other taxes of any kind, municipal, provincial, or national, shall be levied or assessed on the grantee or the corporation to which the franchise is assigned, except the 2% franchise tax on gross earnings. (Section 4)

Termination of Municipal Franchise
- Upon approval of this Act, the municipal franchise granted to Romulo V. Ramos shall terminate, and this franchise shall take its place. (Section 5a)