Whereas, the state of national emergency declared in Act Numbered Forty-one hundred and sixty-six continues to exist:

Be it enacted by the National Assembly of the Philippines:

SECTION 1. Section six of Act Numbered Forty-one hundred and sixty-six is hereby amended so as to read as follows:

"SEC. 6. The United States High Commissioner to the Philippine Islands, or such other authority as the Government of the United States may so empower, together with such officials and employees of the Government of the United States or of the Philippines as such officer may designate, shall constitute the 'United States Sugar, Authority in the Philippine Islands, and as such, when acting within its legal powers, shall be given full faith and obedience by all persons affected. The allocation of all 'A' and 'AA' sugar permitted to be milled within any given calendar or crop year, shall be made by the United States Sugar Authority in the Philippine Islands among the sugar plantation owners, sugar mills and refining plants entitled thereto under the laws and regulations governing the same: Provided, That in the event that the total amount of 'A' and/or 'AA' sugar permitted to be milled within any given calendar or crop year shall exceed or is expected to exceed the amount of sugar that may be admitted free of duty into the United States, under the provisions of the Act of Congress of March 24, 1934, commonly known as the Tydings-McDuffie Law, the President of the Philippines shall allocate in accordance with the provisions of the aforesaid Act, among the sugar plantation owners, sugar mills and refining plants such 'A' and 'AA' sugar as may be admitted free of duty into the United States; and he is hereby authorized to issue of orders, such orders, proclamations, rules, and regulations as may be necessary to put into effect such allocations."

SEC. 2. Section eight of Act Numbered Forty-one hundred and sixty-six is hereby amended so as to read as follows:

"SEC. 8. The President shall allocate or cause to be allocated among all the planters engaged in the growing of sugar cane, the total amount of 'B' and 'C sugar the manufacture whereof may be permitted in any given year, as provided in section five of this Act. The allocation of said ‘B’ and 'C sugar shall be effected in as fair and equitable a manner as may be possible; due regard, however, to be given to such as may deserve reasonable amelioration on account of reduced allotment, or the absence thereof, in 'A' sugar permitted to be manufactured. The total amount of 'B' and 'C sugar shall be allocated among the mill districts, and in turn among the plantations adherent thereto, based on their individual total production during the 1932-1933 or 1933-1934 crop, whichever is the largest: Provided, however, That the President shall have authority to set aside not more than ten per centum of the total amount of 'C sugar to be used as amelioration allotments for sugar cane and sugar producers who may be found to deserve such special consideration as well as such amount of 'B' sugar as he may consider necessary to be used as amelioration allotments for mill districts whose export quota is less than four thousand short tons so as to complete their total 'A' and 'BJ sugar allotment up to its maximum crop year production, inclusive of the year 1933-1934: Provided, That none of these ameliorated mill districts shall have a total 'A' and 'B' sugar allotment greater than four thousand short tons."

SEC. 3. Section fifteen of Act Numbered Forty-one hundred and sixty-six is hereby amended so as to read as follows:

"SEC. 15. Any mill company or refining plant manufacturing centrifugal or 'AA' refined sugar, respectively, in a quantity greater than the quantity prescribed in its license or "any person manufacturing centrifugal or 'AA' refined sugar without a license shall be punished by a fine of fifty pesos for each short ton or fraction of more than one-half a short ton so manufactured and such sugar shall be seized and disposed of as the President of the Philippines shall direct in such manner as will not be inconsistent with the purposes of this Act."

SEC. 4. Section nineteen of Act Numbered Forty-one hundred and sixty-six is hereby amended so as to read as follows:

"SEC. 19. This Act shall take effect upon its approval and shall remain in force for six crop years commencing with the 1934-1935 crop unless the President determines that the state of emergency declared in this Act has ceased, in which case he shall so declare by proclamation, whereupon the effects of this Act shall thereby cease."

SEC. 5. This Act shall take effect upon its approval.

Approved, October 26, 1936.