This Law establishes a framework for government oversight and regulation of the economy during states of emergency, granting ministers broad authority to control the production, distribution, and pricing of goods and services in order to safeguard national security and public welfare. It defines (i) “commodity” as any living or inanimate item, including water, minerals, and agricultural produce, while excluding land, buildings, and items governed by foreign exchange laws; (ii) “service” as activities performed for others, such as construction and public entertainment, excluding ordinary employer–employee labor.
The key provisions of the Law include (i) Declaration of Control – Ministers may designate specific goods or services as “controlled,” with such declarations subject to notification to the Knesset’s Economic Committee and publication in the Official Gazette; (ii) Regulation of Goods and Services – Ministers are empowered to regulate the production, storage, transportation, distribution, and use of goods and services, as well as to prescribe management practices for enterprises engaged in essential activities; (iii) Mandatory Obligations – Businesses are required to (a) maintain prescribed books, accounts, and records, (b) comply with maximum price requirements for controlled commodities, and (c) discontinue operations if they lack a license or are found in violation of the Law; (iv) Purchase Orders – Ministers may order the State to acquire controlled commodities to prevent hoarding or unlawful use, upon which such commodities become State property; and (v) Factory Operations – Operators of factories engaged in essential activities must continue production or comply with specific directives to ensure continuity of supply.
The Law establishes specific regulatory mechanisms for food and agriculture to ensure stability during emergencies, including (i) production and slaughter – the Minister is authorized to regulate the full supply chain, including production, preservation, storage, transportation, and distribution, and may specifically oversee and control the slaughter of animals; (ii) price controls for dairy and poultry – the Law permits the setting of minimum prices for raw milk and sows and maximum price ceilings for poultry products; (iii) mandatory purchase of groceries – the Minister may require the State to purchase controlled food commodities to prevent hoarding, market withdrawal, or delays in supply; (iv) food manufacturers – the definition of “manufacturer” includes any person engaged in producing or growing agricultural products, whether derived from livestock or crops; and (v) essential actions for supply maintenance – the Law authorizes emergency measures to ensure the continuation of activities necessary to maintain regular food supplies.
The Law classifies water as a commodity, thereby subjecting it to the general regulatory regime applicable to essential goods. Accordingly, a Minister may designate water as a controlled commodity and regulate its production, preservation, storage, transportation, distribution, sale, purchase, use, and consumption. In emergency situations, the Minister may issue directives to prevent the loss or destruction of water resources, and may also order the State to acquire water supplies in order to prevent hoarding or delays in market availability, with such supplies becoming State property.
As for minerals, they may likewise be designated as controlled commodities, enabling regulation of their production, preservation, storage, handling, transportation, transfer, distribution, sale, purchase, use, and consumption. The Minister may also impose restrictions or prohibitions on mineral-related activities, require licensing for their production or trade, and mandate compliance measures. Persons engaged in the production or trade of minerals may be required to maintain specified books and records for inspection. Additionally, where necessary to prevent hoarding, disappearance, or delays in market supply, the Minister may issue purchase orders under which minerals become State property, free of liens or encumbrances, with compensation paid to the owner at the maximum prescribed price or, where none exists, at a price determined by the Minister.