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Be it enacted by the Senate and House of Representatives of the Philippines in Legislature assembled and by the authority of the same:

SECTION 1. Section thirteen of Act Numbered Thirty-one hundred and eight, as amended by Act Numbered Thirty-four hundred and eighteen, is hereby amended to read as follows:

"SEC. 13. The Commission shall have general supervision and regulation of, jurisdiction and control over, all public services, and also over their property, property rights, equipment, facilities, and franchise so far as may be necessary for the purposes of carrying out the provisions of this Act. The term 'public service' is hereby defined to include every individual, copartnership, association, corporation, or joint-stock company, whether domestic or foreign, their lessees, trustees, or receivers appointed by any court whatsoever, or any municipality, province, or other department of the Government of the Philippine Islands, that now or hereafter may own, operate, manage, or control within the Philippine Islands, for hire or compensation, any common carrier, railroad, street railway, traction railway, subway, freight, and for passenger motor vehicles, with or without fixed route, freight or any other car service, express service, steamboat or steamship line, ferries, small water craft, such as lighters, pontines, lorchas, and others, engaged in the transportation of passengers or cargo, shipyard, marine railway, marine repair shop, public warehouse, public wharf or dock not under the jurisdiction of the Insular Collector of Customs, ice, refrigeration, canal, irrigation, pipe line, gas, electric light, heat, power, water, oil, sewer, telephone, wire or wireless telegraph system, plant or equipment: Provided, That as regards such common carriers, by land or by water, whose equipment is used principally or secondarily in furtherance of their private business, the net earnings of the latter business shall be considered in connection with their common carrier business for the purposes of rate fixing: Provided, further, That the Commission shall have no jurisdiction over ice plants, cold storage plants, or any of the other service above mentioned, operated by the Federal Government exclusively for its own use and not to serve private persons for pay or compensation, nor over animal-drawn carts or ferries below two tons engaged principally in carrying freight: Provided, lastly, That the Commission shall not exercise any control or supervision over vessels and air lines operated within the Philippine Islands, except with regards to the fixing of maximum passenger and freight rates."

SEC. 2. Subsection (i), of section fifteen of Act Numbered Thirty-one hundred and eight, is hereby amended to read as follows:

"(i) With the exception of public services for the operation of vessels, airships, airplanes, seaplanes and any other kind of aircraft operating within the Philippine Islands, no public service as herein defined shall operate in the Philippine Islands without having first secured from the Commission a certificate, which shall be known as Certificate of Public Convenience, to the effect that the operation of said public service and the authorization to do business will promote the public interests in a proper and suitable manner. Every public service existing on the date of the approval of this Act shall pay the fees herein prescribed for the issuance of the proper Certificate of Public Convenience or Public Necessity and Convenience, as the case may be, in the same manner as said fees shall be payable by any new public service subject to the provisions of this Act, within sixty days from the date of the approval of this Act: Provided, however, That in the case of a public service, other than an air service, for the operation of whose business it is necessary to obtain a franchise from either a municipal government, or a provincial government, under the provision of Act Numbered Six hundred, and sixty-seven, as amended by Act Numbered Ten hundred and twenty-two, or from the Philippine Legislature, such public service shall secure a certificate to be known as Certificate of Public Necessity and Convenience, as required by section twenty-two of this Act. The duty to secure such certificates of Public Convenience or Certificates of Public Necessity and Convenience by public services or to pay the fees herein prescribed by public services already existing is of a mandatory character and noncompliance herewith may, in the judgment of the Public Service Commission, be sufficient ground for the revocation and cancellation of any vested right and for the imposition of the penalty provided for in this Act: Provided, further, That no aviation public service shall operate in the Philippine Islands without having first secured from the Philippine Legislature a franchise to operate an air service; And provided, lastly, That it shall be the duty of every individual, copartnership, association, corporation or joint-stock company already operating or about to operate an aviation public service, under a Certificate of Public Convenience from the Public Service Commission, to secure a franchise to operate an air service in accordance with this Act within one year from the effective date hereof.

SEC. 3. This Act shall take effect upon its approval.

Approved, December 9, 1932.