Presidential Authority to Take Over Public Services or Enterprises
- The President is vested with authority, limited until the adjournment of the next regular session of the National Assembly, to:
- Take over any public service or enterprise solely for government use or operation during the emergency.
- Operate the taken-over services or enterprises.
- The President may restore operation and possession to the rightful owner when further government use is no longer justified.
- The Government must pay just compensation for use, occupation, and operation, as determined by the President.
- If the compensation is unsatisfactory to the owner, the owner receives 75% of the President’s amount as initial payment and may sue for the remainder through eminent domain procedures.
- The President may promulgate regulations necessary for the Act’s implementation, including employment and compensation of operators.
- Income from the operation may be used as a revolving fund to sustain continued government use or operation.
Penalties for Interference or Obstruction
- Any person who obstructs, delays, or hinders government exercise of this authority, or who willfully injures or destroys government-controlled works, properties, or materials, faces:
- A fine up to six thousand pesos,
- Imprisonment up to six years, or
- Both penalties concurrently.
- Persons or firms holding a franchise or certificate of public convenience who refuse or delay delivery of business to the government under this Act are:
- Deemed guilty of misuse of franchise or violation of certificate,
- Subject to ouster through quo warranto or cancellation of their certificate.
Appropriation of Funds
- An appropriation of Two Million Pesos (or necessary portion) is allocated from the Philippine Treasury to fund the Act's purposes.
- Fund release requires order from the President and is not recognized in Auditor General’s books until released.
Reporting to the National Assembly
- The President shall report within ten days of the next regular session regarding actions taken under this Act.
Effectivity of the Act
- The Act takes effect immediately upon approval.