Question & AnswerQ&A (Commonwealth Act No. 496)
The purpose of Commonwealth Act No. 496 is to authorize the President of the Philippines to take over and operate any public service or enterprise for a limited period during a national emergency, to ensure public welfare and address issues arising from conditions such as war that affect the availability and rates of fuel and equipment for public services.
The existence of a state of war among several nations of the world creating greater demand for fuel and equipment for motive power, which depletes stocks and leads to diminished facilities or increased rates for public services, constitutes a national emergency.
The President of the Philippines is vested with the authority to take over public services or enterprises for use or operation by the government during the emergency.
Until the date of the adjournment of the next regular session of the National Assembly following the enactment of this law.
The government must pay just compensation, in a manner determined by the President. If the owner finds the compensation unsatisfactory, they can receive 75% of the amount determined and may sue the government for the remaining just compensation according to eminent domain procedures.
Such a person may be punished by a fine of not more than six thousand pesos, imprisonment for not more than six years, or both.
The person or firm shall be deemed guilty of misuse of franchise or violation of the certificate, and may be ousted by quo warranto action or cancellation of the certificate of public convenience, respectively.
A sum of Two Million Pesos, or so much as may be necessary, is appropriated out of the funds of the Philippine Treasury not otherwise appropriated.
Within the first ten days after the opening of the next regular session of the National Assembly, the President must report whatever actions have been taken under the authority of the Act.
The Act took effect upon its approval on September 30, 1939.