LAWS OF THE STATE OF

Vol. 31

5737 — 1976/77

FROM 2nd CHESHVAN, 5737 — 26.10.76 to 10th ELUL, 5737 — 24.8

(Not Including the Penal Law, 5737 — 1977, Which is Published in a Special Volume)

Authorised Translation from the Hebrew Prepared at the Ministry of Justice

PUBLISHED BY THE GOVERNMENT PRINTER LAWS OF THE STATE OF ISRAEL

Vol. 31

5737 — 1976/77

FROM 2nd CHESHVAN, 5737 — 26.10.76 to 10th ELUL, 5737 — 24.8.77 (Not Including the Penal Law, 5737 —1977, Which is Published in a Special Volume)

Authorised Translation from the Hebrew Prepared at the Ministry of Justice

ISSN 0334-3383

PUBLISHED BY THE GOVERNMENT PRINTER JERUSALEM CONTENTS Page

Laws 3

Budget Laws 309

Index of Laws in the Order of the Dates of Their Adoption by the 336

Alphabetical Index of Laws 341

EXPLANATIONS I.R. (Iton Rishmi) — The Official Gazette during the tenure of the Provisional Council of State

Reshumot — The Official Gazette since the incep• tion of the Knesset

Sections of Reshumot referred to in this translation:

Yalkut Ha-Pirsumim — Government Notices

Sefer Ha-Chukkim — Principal Legislation

Chukkei Taktziv — Budgetary Legislation

Kovetz Ha-Takkanot — Subsidiary Legislation

Hatza'ot Chok — Bills

Chukkei Taktziv — Budget Bills (Hatza'ot)

Dinei Yisrael (from — The revised, up-to-date and binding No. 2: Dinei Medinat Hebrew text of legislation enacted be- Yisrael) fore the establishment of the State (Nusach Chadash)

P.G. (Palestine Gazette) — The Official Gazette of the Mandatory Government

Laws of Palestine — The 1934 revised edition of Palestine legislation (Drayton)

LSI (Laws of the State of — The English translation of laws of Israel) which this volume forms part

NV (Laws of the State of — An English edition of the revised text Israel [New Version]) of pre-State legislation (see above) LAWS (No. 1)

LOCAL AUTHORITIES (BUSINESS TAX) ORDINANCE (AMENDMENT No. 7) LAW, 5737 — 1976 *

1. In section 3 (1) and (2) of the Local Authorities (Business Tax) Amendment of section 3 Ordinance, 19451J (hereinafter referred to as "the Ordinance"), the words "ten thousand pounds" shall be replaced by the words "twenty thousand pounds". 2. Notwithstanding the provisions of section 3 of the Ordinance Ceiling, and the by-laws of the local authorities, a person shall not, in respect of any place in which he carries on a trade or business referred to in the said section, be charged with an amount of tax exceeding by a specific percentage the amount with which he was charged before the date of publication of this Law in Reshumot, as follows:

(1) if the amount with which he was charged as aforesaid did not exceed one thousand pounds, 35 per cent;

(2) if the said amount exceeded one thousand but did not exceed five thousand pounds, 50 per cent;

(3) if the said amount exceeded five thousand pounds, 100 per cent.

YITZCHAK RABIN Prime Minister Minister of the Interior EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 2nd Cheshvan, 5737 (26th October, 1976) and published in Sefer Ha-Chukkim No. 829 of the 11th Cheshvan, 5737 (4th November, 1976), p. 2; the Bill and an Explanatory Note were pub• lished in Hatza'ot Chok No. 1252 of 5736, p. 344. *) P.G. of 1945, Suppl. I, p. 152 (English Edition); Sefer Ha-Chukkim of 5709, p. 43 — LSI vol. HI, p. 30; Sefer Ha-Chukkim of 5712, p. 296 — LSI vol. VI, p. 106; Sefer Ha-Chukkim of 5716, p. 38 — LSI vol. X, p. 32; Sefer Ha-Chukkim of 5718, p. 35 — LSI vol. XII, p. 42; Sefer Ha-Chukkim of 5727, p. 2 — LSI vol. XXI, p. 2; Sefer Ha-Chukkim of 5734, p. 144 — LSI vol. XXVIII, p. 159. (No. 2)

MOTOR VEHICLES INSURANCE ORDINANCE (AMENDMENT No. 3) LAW, 5737 — 1976 *

Amendment of 1. In the Motor Vehicles Insurance Ordinance (New Version), section 15. 5730 —19701). the words "or the period for which they have been holders of a licence" shall be inserted between the word "vehicle" and the word "or" in section 15 (1).

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 2nd Cheshvan, 5737 (26th October, 1976) and published in Sefer Ha-Chukkim No. 829 of the 11th Cheshvan, 5737 (4th November, 1976), p. 2; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1208 of 5736, p. 17. !) Dinei Medinat Yisrael (Nusach Chadash) No. 15, p. 320 — NV vol. II, p. 74; Sefer Ha-Chukkim of 5733, p. 201 — LSI vol. XXVTJ, p. 219; Sefer Ha-Chukkim of 5735, p. 234 — LSI vol. XXIX, p. 316. (No. 3)

SETTLEMENT OF LABOUR DISPUTES (AMENDMENT No. 3) LAW, 5737 — 1976*

1. Sections 37C and 37D of the Settlement of Labour Disputes Addition of section Law, 5717 —19571X shall respectively be re-marked as sections 37D and 37E and the following section shall be inserted after section 37B:

"Unprotected 37C. (a) A Regional Court within the meaning of -is com ,(1969־— 31to'be6dealt the Labour Courts Law, 5729^ with. petent, on the application of an employer in a public service, to declare that the employees of that employer at a particular place of employment or some of them are or have been engaged in an unprotected strike not being a complete work stop­ page; upon the court having so declared, the employees at that place of employment or some of them, as the court may prescribe^ shall only be entitled to a partial wage for the work they actually did in the period of the said strike, at a rate prescribed by the court in accordance with the circumstances of the case.

(b) The Regional Court shall not entertain an application under subsection (a) in respect of a period more than six months prior to its submission.

(c) Where an employee is only entitled to a partial wage, as provided in subsection (a), an amount equal to half his ordinary wage shall be regarded as the partial wage due to him so long as the court has not prescribed the rate of the

* Passed by the Knesset on the 23rd Cheshvan, 5737 (16th November, 1976) and published in Sefer Ha-Chukkim No. 830 of the 3rd Kislev, 5737 (25th November, 1976); the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1252 of 5736, p. 343. *) Sefer Ha-Chukkim of 5717, p. 58 — LSI vol. XI, p. 51; Sefer Ha-Chukkim of 5729, p. 216 — LSI vol. XXm, p. 235; Sefer Ha-Chukkim of 5732, p. 70 — LSI vol. XXVI, p. 77. 2) Sefer Ha-Chukkim of 5729, p. 70; LSI vol. XXIII, p. 76. partial wage as aforesaid; for the purposes of this subsection, "ordinary wage" means the aggregate of the wage components taken into .account for ,the purposes of severance pay under section 13 of the Severance Pay Law, 5723 —1963 1), less allowances payable in respect of output or effort.

(d) Wage balances due to an employee from the employer or to the employer from an employee by virtue of the provisions of this section shall be paid within thirty days from the day on which the Regional Court prescribes the rate of the partial wage under subsection (a) unless the court prescribes another date of payment; any excess amount paid as aforesaid to an employee shall be regarded as an advance to which section 25 (a) (7) of the Wage Protection Law, 5718 — 1958 2), applies, provided that the amount of the deduction shall not exceed 25 per cent of the employee's wage.".

Saving of laws. 2. This Law shall not derogate from but add to the powers of the Labour Court and the law which existed immediately before the coming into force of this Law.

YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour EFRAYIM KATZIR President of the State

!) Sefer Ha-Chukkim of 5723, p. 136; LSI vol. XVII, p. 161. 2) Sefer Ha-Chukkim of 5718, p. 86; LSI vol. XIII, p. 100.

6 (No. 4)

CHAMBER OF ADVOCATES (AMENDMENT No. 10) LAW, 5737 — 1976 *

1. In section 29 of the Chamber of Advocates Law, 5721 — 1961 *) Amendment

2. The following chapter shall be inserted after Chapter Seven "A" Addition of ."B״of the principal Law: &vente

"Chapter Seven "B": Advocates' Benefit Fund

Obligatory 891. (a) If the Chamber establishes a benefit fund membership. by yirtue q{ SQCt[on 3 (5) (sucn benefi(. fund here. inafter referred to as an "Advocates' Benefit Fund"), then, notwithstanding anything provided in any law under which the Advocates' Benefit Fund is establish­ ed, every member of the Chamber shall be a member of the Advocates' Benefit Fund, provided that it is approved under section 47 of the Income Tax Ordinance8) and that its rules are approved by the Chamber and the Minister of Justice and published in Reshumot.

* Passed by the Knesset on the 23rd Cheshvan, 5737 (16th November, 1976) and published in Sefer Ha-Chukkim No. 830 of the 3rd Kislev, 5737 (25th November, 1976), p. 7; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1222 of 5736, p. 148. 1) Sefer Ha-Chukkim of 5721, p. 178 — LSI vol. XV, p. 196; Sefer Ha- Chukkim of 5722, p. 15 — LSI vol. XVI, p. 13; Sefer Ha-Chukkim of 5723, pp. 66 and 142 — LSI vol. XVII, pp. 88 and 177; Sefer Ha-Chukkim of 5725, p. 25 — LSI vol. XIX, p. 21; Sefer Ha-Chukkim of 5728, p. 12 — — and 180 178׳ .LSI vol. XXII, p. 12; Sefer Ha-Chukkim of 5731, pp LSI vol. XXV, pp. 171 and 173; Sefer Ha-Chukkim of 5732, p. 36 — LSI vol. XXVI, p. 37; Sefer Ha-Chukkim of 5736, p. 126 — LSI vol. XXX, p. 126. 2) Dinei Medina( Yisrael (Nusach Chadash) No. 7, p. 173; NV vol. I, p. 222. 8) Dinei Medinal Yisrael (Nusach Chadash) No. 6, p. 120; NV vol. I, p. 145.

7 (b) Compulsory membership as aforesaid shall not apply to the following: (1) an employee in the State Service or in an institution or body to which a Law applies entitling its employees or their survivors, on conditions prescribed in that Law, to a pension on retirement or death or in respect of which an arrangement provides that rights under a Law as aforesaid shall, with or without varia• tions, be granted to its employees and to their survivors; (2) the holder of a post in an authority of the central or local government whose and whose survivors' rights to a retirement or survivors' pension are prescribed by or under Law; (3) an employee of any institution or body whose and whose survivors' rights to a retirement or survivor's pension are assured by a benefit fund within the meaning of section 47 of the Income Tax Ordinance; (4) any other employee whose and whose sur• vivors' rights to a retirement or survivor's pen• sion are assured by a benefit fund as aforesaid to the extent and on the conditions prescribed by the rules of the Advocates' Benefit Fund; , (5) a person who becomes a member of the Chamber when he has already reached a maxi• mum age prescribed for this purpose by the rules of the Advocates' Benefit Fund. (c) Amendments to the rules of the Advocates' Benefit Fund require approval and publication as specified in subsection (a).

Voluntary 89J. A member of the Chamber exempt from obli• membership. gatory membership of the Advocates' Benefit Fund may be a member thereof on the same conditions as would apply to him but for the exemption.

Inspection 89K. An Advocates' Benefit Fund to which this by State Comptroller. chapter applies shall be subject to inspection by the State Comptroller.

8 Supervisioa 89L. The Minister of Justice may make regulations as to the supervision of the business and procedures of an Advocates' Benefit Fund the rules of which he has approved under this chapter; such super• vision shall be in addition to and not in lieu of supervision under the Income Tax Ordinance, the Insurance Business (Control) Ordinance, 5711 — 1951*), and any other law and any agreement.

Civil 89M. Non-fulfilment of a duty resting on a member responsibility. Qf an Advocates- Benefit Fundj foe thereof, by virtue of obligatory membership shall only entail civil responsibility.

Saving 90N. This chapter shall not release an Advocates' of Laws. Benefit Fund from the obligation to obtain any approval or other similar document required for its establishment or functioning under any enact• ment.".

3. Notwithstanding the provisions of section 891 of the principal Transitional Law, obligatory membership of the Advocates' Benefit Fund dealt Provislons• with by that section shall not apply to — (1) a person whose and whose survivors' rights to a retirement or survivor's pension are on the date of the adoption of this Law by the Knesset assured by a benefit fund within the meaning of section 47 of the Income Tax Ordinance (except by way of granting him the right to pay his deposits, plus interest and linkage differentials, by a lump payment or periodical payments, when he reaches a specific age), so long as they are so assured, provided that within three months from the date of adoption of this Law by the Knesset he notifies the Chamber in writing of his rights being assured as aforesaid. (2) a person who on the date of publication of the rules of the Fund under section 891 (a) of the principal Law has already reached the maximum age prescribed by such rules for the purposes of section 891 (b) (5) of the principal Law.

YITZCHAK RABIN YITZCHAK RABIN Prime Minister Prime Minister EFRAYIM KATZIR Acting Minister of Justice President of the State i) Sefer Ha-Chukkim of 5711, p. 221; LSI vol. V, p. 142. (No. 5)

DAVID BEN-GURION LAW, 5737 — 1976 *

The Law. 1. In memory of David Ben-Gurion and his work, and to transmit his heritage to future generations, the Knesset hereby enacts the David Ben-Gurion Law.

CHAPTER ONE: THE INSTITUTIONS

Three 2. The institutions for perpetuating the memory of David Ben- institutions. Gurion shall be David Ben-Gurion House, the Institute for the Heritage of David Ben-Gurion and the Desert Research Institute.

Article One: David Ben-Gurion House

Establishment. 3. There is hereby established an institution named David Ben- Gurion House.

Location. 4. David Ben-Gurion House shall be in Sderot Ben-Gurion, Tel Aviv, in the house which David Ben-Gurion bequeathed to the State.

Objects. 5. David Ben-Gurion House shall be open to the public and shall be — (1) a museum in David Ben-Gurion's memory; (2) a centre for reading, study, research and publishing in fields designated by the board of the institution.

Organs. 6. (a) David Ben-Gurion House shall have a board and a managing committee. (b) The board shall consist of thirteen members, viz. — (1) seven members designated by David Ben-Gurion in his will; if one of them is unable or does not wish to serve, the others shall appoint another member in his stead; (2) six members appointed by the Government. (c) The board shall elect from among its members a managing committee, half from among the members mentioned in subsection (b) (1) and half from among those mentioned in subsection (b) (2). A chairman, also elected by the board from among its members, shall be added to the above.

Passed by the Knesset of the 29th Cheshvan, 5737 (22nd November, 1976) and published in Sefer Ha-Chukkim No. 831 of the ilOth Kislev, 5737) (2nd December, 1976), p. 10; the Bill and an Explanatory Note were published in Hatzaot Chok No. 1246 of 5736, p. 289.

10 Article Two: The Institute for the Heritage of David Ben-Gurion

7. There, is.hereby established an institution named the Institute Establishment, for the Heritage of David Ben-Gurion.

8. (a) The Institute shall be at Sde Boker and shall comprise the Location and hut in which David Ben-Gurion lived at Kibbutz Sde Boker and comPosition- his library in the place where it was at the time of his death. (b) The Institute shall also comprise archives and a research, teaching and conference centre.

9. The Institute shall occupy the premises mentioned in section 8 Objects, and shall serve — (1) for the collection of literary, scientific and documentary material connected with David Ben-Gurion's personality and epoch, his thought and work and his mission in the ranks of labour, the Zionist Movement and the State; (2) for study and research on the Jewsh people's renascence in Eretz Israel and the publication of the results of such study and research.

10. (a) The Institute shall have a board, a managing committee Organs, and a management of David Ben-Gurion's residential hut. (b) The board shall consist of seventeen members, of whom — (1) the Minister of Education and Culture shall appoint seven, provided that they shall not include more than four State employees; (2) Ben-Gurion University of the Negev shall appoint four; (3) Yad Ben-Gurion shall, until the 5th Nisan, 5761 (31st December, 2000), appoint three; (4) the Company for the Dissemination of David Ben- Gurion's Teachings (Collection, Publication and Dissemina• tion of Writings) shall appoint two; (5) Kibbutz Sde Boker shall appoint one. (c) The board shall appoint the managing committee and, in consultation with the Rector of Ben-Gurion University of the Negev, the Director of the Institute. (d) The management of David Ben-Gurion's residential hut shall consist of five members, of whom — (1) Yad Ben-Gurion shall, until the 5th Nisan, 5761 (31st December, 2000), appoint two;

11 (2) Kibbutz Sde Boker shall appoint two; (3) the Minister of Education and Culture shall appoint one.

(e) In so far as no appointments are made by the bodies mentioned in this section, the Minister of Education and Culture shall appoint the missing members.

Transfer of 11. The Institute may transfer to Ben-Gurion University of the functions. Negev any of its functions connected with study and research, except those connected with the keeping of archival material. The particulars of the transfer shall be laid down by a covenant.

Article Three: General Provisions

Status. 12. (a) David Ben-Gurion House and the Institute for the Heritage of David Ben-Gurion (in this article referred to as "the institutions") shall be bodies corporate. (b) The Desert Research Institute shall form part of Ben-Gurion University of the Negev.

Expenditure 13. The State shall supplement the income of the institutions as and inspection. far as is requisite for their preservation, maintenance and development, and they shall be subject to inspection by the State Comptroller.

Budget. 14. The managing committee of each institution shall prepare a draft annual budget for a budget year coincident with the budget year of the State and shall submit it to the Minister of Education and Culture. The budget shall require the approval of the Government; the other proceedings for fixing the budget shall be prescribed by regulations.

Rules. 15. The boards of the institutions, in consultation with the Committee on Education and Culture of the Knesset, shall, each within one year after its formation, make rules containing, inter alia, provisions as to the term of office of members and as to changes in the rules.

Employees. 16. The conditions of employment of the employees of the institutions shall mutatis mutandis be the same as those of State employees in corresponding functions, with such adaptations as the Minister of Education and Culture may prescribe upon the recommendation of the board of each institution after consultation with the Minister of Finance.

12 17. For the purposes of the Income Tax Ordinance1), the institutions Exemption shall be regarded as public institutions for educational and cultural purposes, and their immovable property and transactions in any such property shall be exempt from any tax, fee or other compulsory payment due to the State or a local authority.

18. Until the 5th Tevet, 5761 (31st December, 2000), Yad Ben- Function of •Gunon־Gurion shall act as an advisory and auxiliary body to the institutions. Yad Ben

CHAPTER TWO: ARCHIVAL MATERIAL

19. The ownership of material left by David Ben-Gurion and the Material left by copyright in which he willed to the Company for the Dissemination Ben-Gurion. of David Ben-Gurion's Teachings (Collection, Publication and Dis­ semination of Writings) is hereby vested in the said company for twenty years from the coming into force of this Law and shall there­ after pass to the State.

20. (a) The archives of the Institute for the Heritage of David Archives of Ben-Gurion shall form part of the State Archives, and the provisions thf *Heritage of of the Archives Law, 5716— 1955 2), shall apply thereto: Provided David •Gunon־that the powers of the State Archivist shall be exercised in co- Ben ordination with the board of the Institute. (b) The director of the archives shall be appointed by the State Archivist in consultation with the board of the Institute, and the provisions of section 16 shall apply to him.

21. The archival material connected with David Ben-Gurion's per- Archival m£it ei*i£il sonality, work and creative endeavour shall be kept in the archives of the Institute, and material as aforesaid in the State Archives or in the possession of other institutions, bodies or persons, except material in the possession of private persons, shall be transferred to the archives of the Institute in the original or in transcript, as the State Archivist may direct.

CHAPTER THREE: MEMORIAL DAY

22. (a) The date of David Ben-Gurion's death, the 6th of Kislev, Memorial Day. shall be a State memorial day. It shall be marked in the institutions of the State, IDF bases and schools.

!) Dtnei Medinat Yisrael (Nusach Chadash) No. 6, p. 120; NV vol. I, p. 145. 2) Sefer Ha-Chukkim of 5715, p. 14; LSI vol. LX, p. 12.

13 (b) If the 6th of Kislev falls on the eve of Sabbath or on a Sabbath, the memorial day shall be observed on the following Sunday.

CHAPTER FOUR: BURIAL SITE

Burial site. 23. The burial site of David Ben-Gurion and Paula Ben-Gurion at Sde Boker shall be maintained by the State or a body empowered in that behalf by the Government.

CHAPTER FIVE: MISCELLANEOUS PROVISIONS

Transitional 24. The assets and liabilities of the David Ben-Gurion Reading, provisions. Study and Research Centre shall upon the coming into force of this Law pass to David Ben-Gurion House.

Implementation. 25. The Minister of Education and Culture is charged with the implementation of this Law and may make regulations as to any matter relating to such implementation, as well as regulations as to the maintenance of the premises referred to in section 9.

YITZCHAK RABIN AHARON YADLIN Prime Minister Minister of Education and Culture EFRAYIM KATZIR President of the State

14 (No. 6)

ASSURANCE OF INSURANCE BENEFITS (THIRD PARTY) LAW 5737 — 1976 *

1. (a) Where a person is insured under an insurance contract, Vesting of other than a reinsurance contract, against liabilities he may incur tttrdVarty. towards a third party, and one of the following events occurs before or after he incurs such a liability, his rights against the insurer in respect of that liability shall not be part of his assets but shall, notwithstanding anything provided in any other law, pass to the third party towards whom the liability exists, and such third party may sue the insurer under those rights. (b) The events referred to in subsection (a) are as follows — (1) where the insured person is an individual: he is declared bankrupt or reaches a compromise or arrangement with his creditors in bankruptcy proceedings; (2) where the insured person is an individual who has died: an order is made for the administration of his estate in bankruptcy under the law of bankruptcy; (3) where the insured person is a body corporate: a winding-up order is made for it or a receiver is appointed for it or an administrator is appointed for its business or undertaking or it resolves upon voluntary winding-up, other than voluntary winding-up for the purpose of reconstruction or of amalgamation with another body corporate.

2. An insurance contract or an act of the insured person, the Entrenchment trustee in bankruptcy, the liquidator, the receiver or the administrator righ^rd"party cannot derogate from the rights vested in a third party by this Law.

YiTzcHAK RABIN HAIM J. ZADOK Prime Minister Minister of Justice EFRAYIM KATZIR President of the State

Passed by the Knesset on the 1st Kislev, 5737 (23rd November, 1976) and published in Sefer Ha-Chukkim No. 832 of the 10th Kislev, 5737 (2nd December, 1976), p. 14; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1081 of 5733, p. 426. (No. 7)

STATE OF ISRAEL BONDS (FIFTH DEVELOPMENT INVESTMENT ISSUE) LAW, 5737 — 1976*

Authorisation 1. The Minister of Finance is authorised to borrow, on behalf of to accept loan. the State of Israel, a sum not exceeding 350,000,000 dollars (coin or currency of the United States of America, or its equivalent in currencies of other countries) and for this purpose to issue and sell from time to time bonds in the United States of America and other countries.

Title and 2. The bonds issued under this Law (hereinafter referred to as designation of Bonds. "Bonds") shall be designated as "State of Israel Bonds (Fifth Development Investment Issue)" or with such variations of title and with such series designations as the Minister of Finance may determine.

Power of 3. The Bonds shall be issuable in annual or other series, and Minister of Finance. the Minister of Finance may from time to time determine the form of the Bonds and of each series thereof, the amounts, not less than 2,500 dollars of the United States of America or the equivalent thereof in currencies of other countries, in which they shall be issued subject to the limitation imposed by section 1, the modes of their issue and the terms and conditions applicable to them, including restrictions on their transfer. Such terms and conditions need not be uniform in all series, but may vary from series to series.

Denominations, 4. (a) The Bonds shall only be issued on an interest-bearing basis types and characteristics and shall mature at such time or times as may be prescribed by of Bonds. the Minister of Finance, provided that no Bond issued under this Law shall mature later than 20 years after the date of issue. The Bonds shall bear such rate of interest as the Minister of Finance may prescribe, provided that no Bond issued under this Law shall afford an investment yield, taking into account any rate of interest on appreciation and any discount or premium applicable thereto, exceeding 5% p.ct. per annum, compounded semi-annually. The Bonds shall be of such denominations, not less than 2,500 dollars

* Passed by the Knesset on the 7th Kislev, 5737 (29th November, 1976) and published in Sefer Ha-Chukkim No. 833 of the 27th Kislev, 5737 (9th December, 1976), p. 16; the Bill and an Explanatory Note were published in Hatzefot Chok No. !1253 of 5736, p. 346.

16 of the United States of America or the equivalent thereof in cur• rencies of other countries, and may be sold at such price or prices and redeemed or repurchased before and at maturity upon such terms and conditions, consistent with the provisions of this Law, as the Minister of Finance may from time to time prescribe. (b) The Minister of Finance may impose restrictions as to the individuals, bodies corporate, organisations, institutions and other bodies permitted to acquire Bonds. (c) The Minister of Finance may authorise the acceptance of outstanding obligations of the State of Israel in payment for the Bonds, and he may designate the obligations of the State of Israel which may be so accepted and the terms and conditions of such acceptance.

5. (a) A Bond shall bear the State Seal or the State Emblem Signature or a facsimile of either. on Bonds• (b) A Bond shall bear the signatures of the Prime Minister and the Minister of Finance or the facsimile of such signatures printed from engraving; the coupon annexed to a Coupon Bond need only bear a facsimile as aforesaid of the signature of the Minister of Finance. (c) The Minister of Finance may prescribe that a Bond shall be signed by additional persons appointed by him in that behalf from among the persons employed in the service of the State of Israel; notice of the appointment shall be published in Reshumot.

6. The principal, interest and redemption or repurchase prices Repayment at payable under the Bonds shall, subject to the provision of section 8 matunty• for repurchase in Israel currency at the option of the holder, be paid in legal tender currency of the United States of America out of the general revenues and assets of the State of Israel. The full faith and credit of the State of Israel is pledged for such payment.

7. The Minister of Finance is empowered to prescribe the terms Redemption and and conditions upon which any Bond may be redeemed or re- befor^maturity. purchased prior to maturity; provided, however, that if Bonds are issued in series, no Bond of any series may be called for redemption by the State of Israel unless all Bonds of prior series have been called for redemption.

8. The Minister of Finance may make provision for the establish- Sinking fund ment of a sinking fund and prescribe the terms and conditions upon i^^sraelcurroMy.

17 which the State of Israel shall, upon the demand of the holder of a Bond, repurchase any Bond in Israel currency.

Exemption 9. (a) The Bonds shall be exempt from stamp duty, from taxes. (b) If the actual owner of a Bond is resident abroad, the principal, interest and redemption or repurchase price payable thereunder, and any income or gain obtained in transactions therein, shall be free of all taxes, whether ad valorem or otherwise, and whether of specific or general applicability, which are, or may in the future be, imposed in Israel.

Administration. 10. The Minister of Finance may appoint Fiscal Agents in the United States of America and other countries for the purposes of this Law and may enter into contracts on behalf of the State of Israel with any person for the carrying out of any operations incidental to the issue, flotation, registration and transfer of the Bonds.

Implementation 11. (a) The Minister of Finance is charged with the implementation

and regulations. Qf ^ Law and may_

(1) execute, either personally or through a person appointed by him in that behalf in writing, any document (including any contract of the kind referred to in section 10) deemed by him to be necessary or desirable for the implementation of this Law; (2) appoint agents abroad in order to carry on in his name the sale of, and other services connected with, the Bonds; (3) appoint registrars and transfer agents and establish offices for maintaining records of the registration and transfer of Bonds. (b) The expenses incidental to the implementation of this Law shall be paid out of the general revenues and assets of the State of Israel. (c) The Minister of Finance may make regulations as to any matter relating to the implementation of this Law.

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State

18 (No, 8)

DEFENCE (FINANCE) REGULATIONS (CONTINUANCE IN FORCE) LAW, 5737— 1976*

1. The validity of the Defence (Finance) Regulations, 1941J), is Continuance hereby extended until the 22nd Adar Bet, 5738 (31st March, 1978). m force•

2. This Law shall come into force on the 11th Tevet, 5737 (1st Commencement. January, 1977).

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 7th Kislev, 5737 (29th November, 1976) and published in Sefer Ha-Chukkim No. 833 of the 17th Kislev, 5737 (9th December, 1976), p. 18; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1258 of 5736, p. 367. *) P.G. of 1941, Suppl. II, p. 1647 (English Edition); Sefer Ha-Chukkim of 5736, p. 3 — LSI vol. XXX, p. 4.

19 (No. 9)

DEVELOPMENT LOAN (AMENDMENT No. 16) LAW, 5737 —1976 *

Amendment of 1. In section 6 (1) of the Development Loan Law, 5720 —I9601), section 6. the words "or partly to the one and partly to the other" shall be replaced by the words "or to the rate of exchange of a foreign currency, or partly to one and partly to another of these".

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 7th Kislev, 5737 (29th November, 1976) and published in Sefer Ha-Chukkim No. 833 of the 17th Kislev, 5737 (9th December, 1976), p. 18; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1260 of 5736, p. 275. !) Sefer Ha-Chukkim of 5720, p. 47 — LSI vol. XIV, p. 39; Sefer Ha- Chukkim of 5736, pp. 91 and 237 — LSI vol. XXX, pp. 96 and 234.

20 (No. 10)

NATIONAL DEFENCE LOAN (AMENDMENT No. 6) LAW, 5737 — 1976*

1. In section 6 (1) of the National Defence Loan Law, 5729—Amendment of 19691), the words "or to the rate of exchange of a foreign currency" sectl0n 6- shall be inserted after the words "to the cost-of-living index".

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 7th Kislev, 5737 (29th November, 1976) and published in Sefer Ha-Chukkim No. 833 of the 17th Kislev, 5737 (9th December, 1976), p. 19; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1260 of 5736, p. 375. !) Sefer Ha-Chukkim of 5729, p. 82 — LSI vol. XXIII, p. 89; Sefer Ha- Chukkim of 5730, pp. 8 and 100 — LSI vol. XXIV, pp. 9 and 106; Sefer Ha-Chukkim of 5731, p. 106 — LSI vol. XXV, p. 105; Sefer Ha- Chukkim of 5732, p. 116 — LSI vol. XXVI, p. 132; Sefer Ha-Chukkim of 5733, p. 95 — LSI vol. XXVII, p. 92. (No. 11)

SCHOLARSHIPS (REGISTRATION) LAW, 5737 — 1976*

Definitions. 1. In this Law — "educational institution" means any school at which more than ten students study, or are educated, systematically; but in relation to a student it means studies at any such school as aforesaid from Class VII up to preparation for a recognised first academic degree;

"scholarship" means any payment, credit or arrangement for exemption from payment provided directly or indirectly to a person as a student at an educational institution, by way of a grant or loan, to finance his tuition or subsistence during his period of study, and includes facilitating the payment of tuition fees but does not include —

(1) a payment conditional upon an undertaking by the recipient to serve for a time at a particular institution or in a particular job;

(2) a payment made by virtue of an undertaking entered into by the payer under a contract of employment with the recipient or with a relative of the recipient; "Funds Centre" means the Funds Centre at the Ministry of Education and Culture;

"fund" means —

(1) an educational institution;

(2) a body corporate the main object of which is the provision of scholarships;

(3) whoever makes moneys recurrently available for scholarships in an aggregate annual amount exceeding an amount prescribed by regulations; "registered fund" means a fund which the Minister of Education

• Passed by the Knesset on the 8th Kislev, 5737 (30th November, 1976) and published in Sefer Ha-Chukkim No. 833 of the 17th Kislev, 5737 (9th December, 1976), p. 19; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1237 of 5736, p. 225.

22 and Culture has ordered under section 2 to be registered with the Fund Centre.

2. The Minister of Education and Culture may — Supply of

(1) order an educational institution to present to the Funds registration of Centre a report on the types of scholarships it grants to its funds, students and particulars known to it concerning funds and other sources from which scholarships are granted to them; (2) order the registration of a fund with the Funds Centre.

3. (a) A registered fund shall deliver to the Funds Centre an Duties of ^ annual report as to the aggregate amount of scholarships granted re8istered fun by it in the past year and shall inform it of the aggregate amount of scholarships which will be at its disposal in the current year, the objects of the scholarships, the criteria for granting them and further particulars of the nature of the scholarships, all as prescribed by regulations. (b) Where the grant of scholarships on behalf of a registered fund is entrusted to an educational institution, the duty referred to in subsection (a) shall devolve on that institution.

4. (a) Upon the expiration of one year from the coming into Publication force of this Law, the Funds Centre shall publish a registered funds directory, which shall contain particulars derived from information given under section 3, as prescribed by regulations; but where, under the rules of a registered fund, scholarships are treated as secret gifts, the Funds Centre shall omit the name of the fund and any particular by which it can be identified, and a particular thus omitted shall be treated as secret information under section 387 of the Crimanl Code Ordinance, 19361). (b) In each year subsequent to the publication of the directory under subsection (a), the Funds Centre shall publish a list of amend• ments to the directory, as may be required as a result of information given during the year under section 3.

5. For the purposes of this Law, the State as a fund shall be Status of treated like any other fund.

6. The Minister of Education and Culture is charged with the Implementation implementation of this Law and may, in consultation with the and re8ulatl0ns-

P.G. of 1936, Suppl. I, p. 285 (English Edition).

23 Committee on Education and Culture of the Knesset, make regula• tions as to any matter relating to its implementation.

YITZCHAK RABIN AHARON YADLIN Prime Minister Minister of Education and Culture EFRAVIM KATZIR President of the State (No. 12)

PLANNING AND BUILDING (TEMPORARY PROVISIONS) LAW, 5731 — 1976*

1. Notwithstanding the provisions of section 12 (b) of the Planning Special and Building Law, 5725 — 19651). (hereinafter referred to as "the extension• Planning Law"), the Minister of the Interior may within thirty days from the date of publication of this Law in Reshumot, by order, in respect of an area which was included in the area of a local authority before the 17th Shevat, 5731 (11th February, 1971), extend the period referred to in the said section 12 (b) by an additional period ending not later than the 7th Adar Alef, 5741 (11th February, 1981).

2. Any such act done by a District Commission in the period Acts in interim between the 10th Adar Alef, 5736 (11th February, 1976) or the penod- day on which the five-year period under section 12 (b) of the Planning Law ended, as the case may be, and the coming into force of an order under section 1 (such period hereinafter to as "the interim period") as is invalid by reason only that the time referred to in the said section 12 (b) elapsed before it was done shall be deemed to have been validly done; but a person shall not be prosecuted for an offence against the Planning Law committed in the interim period in the area to which the order under section 1 applies.

3. Notwithstanding the provisions of section 2, where the District Repetition of Commission commenced proceedings by virtue of its powers under extension 8of section 12 of the Planning Law in respect of areas to which the times, order under section 1 applies and such proceedings had not ended on the date of the coming into force of the said order, the District Commission shall, on the application of an interested party, recom• mence the said proceedings or part thereof or extend the time for the doing of anything by the applicant by a period not exceeding sixty days, all as justice may demand, provided that the application

• Passed by the Knesset on the 8th Kislev, 5737 (30th November, 1976) and published in Sefer Ha-Chukkim No. 833 of the 17th Kislev, 5737 (9th December, 1976), p. 21; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1254 of 5736, p. 355. !) Sefer Ha-Chukkim of 5725, p. 307; LSI vol. XLX, p. 330.

25 is filed within three months from the date of the coming into force of the order.

YITZCHAK RABIN YOSEF BURG Prime Minister Minister of the Interior

EFRAYIM KATZIR President of the State (No. 13)

LOAN (COST-OF-LIVING ALLOWANCE) (AMENDMENT) LAW, 5737 —1976 *

1. In section 8 of the Loan (Cost-of-Living Allowance) Law, 5735— Amendment of !975!)__ sections. (1) in subsection (c), the words "and the balances the amount of which is smaller than the lowest denomination of the loan certificates" shall be added at the end; (2) the following subsection shall be added after subsection (c): "(d) The loan certificates shall only be for an amount of pounds divisible without remainder by five.".

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 15th Kislev, 5737 (7th December, 1976) and published in Sefer Ha-Chukkxm No. 834 of the 24th Kislev, 5737 (16th December, 1976), p. 24; the Bill and an Explanatory Note were published in Hatzdot Chok No. 1262 of 5737, p. 15. *) Sefer Ha-Chukkim of 5735, p. 54; LSI vol. XXTX, p. 65. (No. 14)

ENCOURAGEMENT OF INVESTMENTS (LARGE-CAPITAL COMPANIES) (AMENDMENT) LAW, 5737 — 1976*

Amendment of 1. In section 11 (a) of the Encouragement of Investments (Large- 1 section 11. Capital Companies) Law, 5734 —1973 X the words "three years" shall be replaced by the words "four years".

Commencement. 2. This Law shall come into force on the 18th Kislev, 5737 (10th December, 1976).

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 16th Kislev, 5737 (8th December, 1976) and published in Sefer Ha-Chukkim No. 834 of the 24th Kislev, 5737 (16th December, 1976), p. 24; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1269 of 5737, p. 50. ') Sefer Ha-Chukkim of 5734, p. 18; LSI vol. XXVIII, p. 16. (No. 15)

HOMES (SUPERVISION) (AMENDMENT) LAW, 5737 — 1976*

1. In the Homes (Supervision) Law, 5735 — 1965 1X the following Addition of sections sections shall be inserted after section 9: 9A — 9C

"Closure of 9A. (a) Where, in proceedings taken before it for an offence under section 9 or on the application of ־nome the Minister of Social Welfare or a person em­ powered by him in that behalf, it is proved to the Magistrates' Court that any of the requirements of this Law or of regulations or a licence thereunder is not fulfilled in any home, such court may, either upon a conviction for the offence and in addition to any penalty it may impose or by way of granting an application as aforesaid, order that the home be closed, permanently or for a period prescribed by it, on such conditions as it may prescribe, including the care of protected persons.

(b) Where an information is filed for an offence under section 9, or an application as referred to in subsection (a) is filed on behalf of the Minister of Social Welfare, the Magistrates' Court may, on a further application by the pro­ secutor or the representative of the Minister, as the case may be, order that the home be closed until termination of the legal proceedings, on con­ ditions prescribed by it, including the care of protected persons.

Carrying out 9B. (a) The court may, by order, entrust the closure. closure of a home to an authority designated by it or to the manager of the home and may issue to it or him directions as to carrying it out.

* Passed by the Knesset on the 22nd Kislev, 5727 (14th December, 1976) and published in Sefer Ha-Chukkim No. 835 of the 2nd Tevet, 5737 (23rd December, 1976), p. 26; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1254 of 5736, p. 353. J) Sefer Ha-Chukkim of 5725, p. 48; LSI vol. XTX, p. 44.

29 (b) Where the closure of a home is entrusted to the manager thereof and he does not carry out the order issued to him, he shall be liable to imprisonment for a term of six months and to imprisonment for a term of seven days in respect of every day on which the offence continues after service of the order.

(c) Notwithstanding anything provided in any Law, offences under this Law shall in all respects be misdemeanours.

Saving of power. 9C. Nothing .provided in this Law shall be con• strued as derogating from the power of the court under the Contempt of Court Ordinance1), but a person shall not bear responsibility both under this Law and under the Contempt of Court Ordinance.".

YITZCHAK RABIN ZVULUN HAMMER Prime Minister Minister of Social Welfare

EFRAYIM KATZIR President of the State

') Laws of Palestine vol. I, p. 356 (English Edition). (No. 16)

SEVERANCE PAY (AMENDMENT No. 6) LAW, 5736 — 1976 *

1. In section 5 of the Severance Pay Law, 5723 — 1963 1)— Amendment (1) in subsection (a), in the definition of "survivors", the words sectl0n 5- "a spouse and a child of the employee who come within the definition of dependants of an insured person for the purposes of benefits under Part Two of the National Insurance Law, 5714 —1953" shall be replaced by the words "a spouse of the employee at the time of the employee's death, including a person known among the public as the spouse of, and living with, the employee, and a child of the employee coming within the definition of a dependant of an insured person for the purposes of benefits under Chapter Three of the National Insurance Law (Consolidated Version), 5728 — 1968 2)"; (2) in subsection (b), the words "a dependent spouse or depen• dent children" shall be replaced by the words "a spouse or dependent children".

YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 22nd Kislev, 5737 (14th December, 1976) and published in Sefer Ha-Chukkim No. 835 of the 2nd Tevet, 5737 (23rd December, 1976), p. 27; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1266 of 5737, p. 30. *) Sefer Ha-Chukkim of 5723, p. 136 — LSI vol. XVII, p. 161; Sefer Ha- Chukkim of 5736, p. 96 — LSI vol. XXX, p. 101. *) Sefer Ha-Chukkim of 5728, p. 108; LSI vol. XXJJ, p. 114. (No. 17)

SEVERANCE PAY (AMENDMENT No. 7) LAW, 5737 —1976 *

Repeal of 1. Section 10 of the Severance Pay Law, 5723 — 1963 J), is section 10. hereby repealed.

YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 22nd Kislev, 5737 (14th December, 1976) and published in Sefer Ha-Chukkim No. 835 of the 2nd Tevet, 5737 (22nd December, 1976), p. 27; the Bill and an Explanatory Note were published in Hatzdot Chok No. 1266 of 5737, p. 31. i) Sefer Ha-Chukkim of 5723, p. 136 — LSI vol. XVII, p. 161; Sefer Ha- Chukkim of 5724, p. 167 — LSI vol. XVIII, p. 166; Sefer Ha-Chukkim of 5725, p. 215 — LSI vol. XTX, p. 225; Sefer Ha-Chukkim of 5733, pp. 222 and 258 — LSI vol. XXVTJ, pp. 248 and 299; Sefer Ha-Chukkim of 5736, p. 96 — LSI vol. XXX, p. 101; Sefer Ha-Chukkim of 5737, p. 27 — supra, p. 31.

32 (No. 18)

INVALIDS (NAZI PERSECUTION) (AMENDMENT No. 4) LAW, 5737 —1976 *

1. Wherever in the Invalids (Nazi Persecution) Law, 5717 — 1957 ^ Amendment (hereinafter referred to as "the principal Law") the term "additional of tenn' pension" occurs, it shall be replaced by the term "destitute person's pension".

2. (a) Section 1 of the principal Law shall be re-marked as section Amendment , , . , of section 1. 1 (a) and — (1) the definitions of "pension" and gratuity", appearing therein, are hereby repealed;

(2) the following definitions shall be added at the end thereof:

"the determining wage" means 86 per cent of the total amount of salary payable to a State employee whose salary grade is "Yod" of the uniform grading;

"additional income" means income of an invalid from any source other than a pension under this Law.".

(b) The following subsection shall be added after section 1 (a) of the principal Law:

"(b) Every reference in this Law to the Federal Republic of Germany shall be deemed to include any of its insti• tutions.".

3. Sections 3 A to 3F of the principal Law shall be replaced by Replacement the following sections: of sections•

* Passed by the Knesset on the lst-Tevet, 5737 (22nd December, 1976) and published in Sefer Ha-Chukkim No. 836 of the 9th Tevet, 5737 (30th December, 1976), p. 30; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1164 of 5735, p. 156. 0 Sefer Ha-Chukkim of 5717, p. 103 — LSI vol. XI, p. Ill; Sefer Ha- Chukkim of 5720, p. 88 — LSI vol. XTV, p. 85; Sefer Ha-Chukkim of 5729, p. 90 — LSI vol. XXIII, p. 96; Sefer Ha-Chukkim of 5733, p. 240 — LSI vol. XXVII, p. 271.

33 "Claim for 3A. A person who submits to the Federal Republic compensation from other of Germany a claim for a pension or other com• source. pensation for invalidity because at any time he belonged to the sphere of German language and culture shall not, for this reason alone, cease to be an invalid under the Law. A pension or other compensation claimed as aforesaid or approved upon being so claimed is hereinafter referred to as "compensation".

Duty of 3B. (a) A person who has submitted a claim for notification. compensation shall notify the competent authority to such effect in writing within three months from the date of submission of the claim to the Federal Republic of Germany. (b) A person whose claim for compensation has been approved shall notify the competent authority to such effect in writing within three months from the date on which the approval was notified to him.

Assignment. 3C. The competent authority may direct that a person who has submitted a claim for compensation shall assign his right to compensation to it to ensure the return of the pension as provided in section 3E.

Invalid 3D. A person for whom compensation has been entitled to compensation. approved (hereinafter referred to as "an invalid entitled to compensation") shall not be entitled to a pension: Provided that if only one-time com• pensation or compensation until a specific date has been approved he shall be entitled to a pension for the period beginning with the date of approval or with the said specific date. For the purpose of this section and sections 3E and 3F, "pension" means any periodical payment under this Law.

Return of 3E. (a) An invalid entitled to compensation shall pension. return to the competent authority the whole of the pension received by him under this Law, or, if compensation was approved for him after the

34 16th Nisan, 5729 (4th April, 1969), 80 per cent of the total amount of pension received as aforesaid, within four months from the date on which com• pensation was approved for him or within two months from the date on which the amount of compensation relating to the period prior to the approval was paid to him, whichever period ends last, provided that the approval has been notified to the invalid; for this purpose, an amount shall be considered to have been paid if it has been placed at the disposal of the invalid or, by assign• ment, of the competent authority. (b) The amount to be returned by the invalid under this section shall not exceed two thirds of the compensation approved for him, with the deduction of the expenses incurred by him in respect of the compensation claim. In calculating the amount of compensation, payments relating to a period subsequent to the approval or payments relating to a period in respect of which the invalid was not entitled to a pension (hereinafter referred to as "the non-coincident period") shall not be taken into account. (c) Where it is not established by a public document, within the meaning of the Evidence Ordi• nance (New Version), 5731 — 1971 *), issued in the Federal Republic of Germany and produced to the competent authority, to which period the com• pensation relates, it shall be deemed to relate to the period beginning with the 16th Tevet, 5705 (1st January, 1945) and ending with the date of approval of the compensation.

(d) Where it is not established by a public document as aforesaid what part of the compen• sation relates to a non-coincident period, such part shall be an amount bearing to the total amount of compensation approved for the invalid the same proportion as the aggregate amount of periodical

!) Dinei Medinat Yisrael (Nusach Chadash) No. 18, p. 421; NV vol. II, p. 198. payments payable under the laws of the Federal Republic of Germany, in respect of the non- coincident period, to a persecutee of the same degree of invalidity as is fixed in that country for the invalid bears to the aggregate amount of periodical payments payable as aforesaid until the date of approval of the compensation.

(e) Where the invalid has paid to the com• petent authority the amount due to it under this section at the time prescribed therein, the com• petent authority shall return to him the assignment made under section 3C or shall cause the amount which served as security for the said amount to be transferred to him. (f) Where the invalid does not pay to the competent authority the amount due to it under this section at the time prescribed therein, the competent authority shall deduct the said amount from the compensation and shall cause the balance to be returned to the invalid. (g) Where the competent authority has ex• tended the time within which an invalid entitled to compensation is required to return a pension, it may agree with him upon a payment scheme in accordance with conditions prescribed by it.

Payment of 3F. Where an invalid is entitled to compensation difference to invalid. which includes periodical payments relating to a period subsequent to the approval, and such pay• ments are less than the amount of pension to which he would be entitled under this Law in respect of that period, he shall, notwithstanding the provisions of section 3D, be entitled to receive the difference between the said payments and the pension.

Calculation 3G. The Minister of Finance may, with the ap• of expenses. proval of the Finance Committee of the Knesset, prescribe by regulations the types and maximum rates of expenses which are to be regarded as expenses in respect of a compensation claim.

36 Calculation 3H. For the purposes of section 3E, amounts of of fcite of foreign foreign currency shall be calculated in pounds at currency. the rate of the date of approval of the compensa­ tion, and expenses in respect of a compensation claim shall be calculated at the rate of the date on which they are incurred.".

4. Section 4 (a) of the principal Law shall be replaced by the Amendment of 4־ following subsection: section "(a) An invalid entitled to a pension shall be paid out of the Treasury, for life, a monthly pension at the rate of one per cent of the determining wage in respect of each per cent of his degree of invalidity.".

5. In section 4A of the principal Law, subsections (a) and (b) Amendment of section 4A shall be replaced by the following subsections: "(a) A destitute invalid whose degree of invalidity is not less than 50 per cent and who has no additional income shall, instead of the pension under section 4 (hereinafter referred to as "the principal pension"), be paid a pension at the rate of the total salary payable to a State employee whose salary grade is "Tet-Vav" of the uniform grading (hereinafter referred to as a "destitute person's pension"). (b) A destitute invalid whose degree of invalidity is not less than 50 per cent and who has an additional income shall, instead of the principal pension, be paid a destitute person's pension with the deduction of an amount equal to the amount of his additional income: Provided that it shall not be less than the principal pension.".

6. In section 4B of the principal Law, the words "Provided that Amendment of the destitute person's pension shall not be less than the principal sectlon 4B• pension" shall be added at the end.

7. The following section shall be inserted after section 4C of the Addition of principal Law: section 4D'

"Special 4D. An invalid with a special degree of invalidity pension. determined in accordance• with rules set out in regulations shall, so long as his degree of invalidity is as aforesaid, be paid an addition of 30 per cent of his pension.".

37 Addition of 8. The following section shall be inserted after section 21 of the section 21 A. principal Law:

"Withholding 21A. Where a person does not comply with a payment. direction of the competent authority under section 3C, the competent authority may withhold the payment of the pension to which he is entitled under this Law.".

Amendment of 9. Section 22 (b) and (c) of the principal Law shall be replaced section 22. by the following subsection: "(b) A person who does not do what he is required to do by section 3B shall be liable to a fine of 1,000 pounds.".

Amendment of 10. At the end of section 24 of the principal Law there shall be section 24. added the words: "including regulations as to the following matters: (1) the imparting of a trade to and training for work of invalids, the provision of grants or loans for these purposes and the mode of repayment of the loans; (2) the provision of loans and grants to invalids for the purpose of creating and consolidating sources of income, and the mode of repayment of the loans; (3) the provision of loans and guarantees to invalids for pur• poses of housing (on a rental or ownership basis), and the mode of repayment of the loans.".

Repeal. 11. Section 9 (b) of the Invalids (Nazi Persecution) (Amendment No. 3) Law, 5733 — 1973 *), is hereby repealed.

Commencement 12. (a) Section 2 (a) (1) and (b) and section 8 of this Law and and transitional provisions. sections 3A and 3C to 3H of the principal Law, as enacted by this Law, shall have effect from the date of the coming into force of the principal Law. (b) Section 11 shall have effect from the 4th Av, 5733 (2nd August, 1973). (c) Sections 2 (a) (2), 4 and 5 shall have effect from the 28th Adar Bet, 5733 (1st April, 1973): Provided that the following provisions shall apply in respect of the period between that date and the 8th Nisan, 5734 (31st March, 1974):

i) Sefer Ha-Chukkim of 5733, p. 240; £.5/ vol. XXVII, p. 271.

38 (1) in section 2 (a) (2), in the definition of "the determining wage", the expression "86 per cent" shall be replaced by the expression "78 per cent"; (2) in section 5, the expression "Tet-Vav" shall be replaced by the expression "Yod-Dalet". (d) Where before the publication of this Law in Reshumot a person entitled to compensation within the meaning of section 3A of the principal Law, as enacted by this Law, paid to the competent authority the amounts he had undertaken to pay to it in view of the compensation or gave security for the payment thereof, the competent authority shall not by reason only of the adoption of this Law revise his account, save on his express application in writing.

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State (No. 19)

EMERGENCY REGULATIONS (POSSESSION AND PRESENTATION OF IDENTITY CERTIFICATE) (EXTENSION OF VALIDITY) LAW, 5737 — 1976 *

Extension of 1. The validity of the Emergency Regulations (Possession and validity. Presentation of Identity Certificate), 5731 —1971 1). is hereby ex• tended until the 1st Tevet, 5739 (31st December, 1978).

Commencement. 2. This Law shall have effect on the 10th Tevet, 5737 (31st December, 1976).

YITZCHAK RABIN Prime Minister and Minister of the Interior

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 28th Kislev, 5737 (20th December, 1976) and published in Sefer Ha-Chukkim No. 836 of the 9th Tevet, 5737 (30th December, 1976), p. 33; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1263 of 5737, p. 18. i) Kovetz Ha-Takkanot of 5731, p. 359; Sefer Ha-Chukkim of 5731, p. 109 — LSI vol. XXV, p. 108; Sefer Ha-Chukkim of 5733, p. 62 — LSI vol. XXVII, p. 59; Sefer Ha-Chukkim of 5735, p. 36 — LSI vol. XXIX, p. 43.

40 (No. 20)

COMMODITIES AND SERVICES (CONTROL) (AMENDMENT No. 6) LAW, 5737 — 1976 *

1. In the Commodities and Services (Control) Law, 5718 — 1957 2) Addition of (hereinafter referred to as "the principal Law"), the following shall xwoPt"C". be inserted after section 16K:

"CHAPTER TWO "C": RESTRICTIONS ON TRANSACTIONS IN MILITARY EQUIPMENT "Definitions. 16L. In this chapter — "military equipment" means equipment of the following kinds: (1) weapons systems, armoured combat ve• hicles, firearms, missiles and ammunition; (2) aircraft, vessels, explosives, electronic equip• ment, communications equipment, optical equip• ment, vehicles other than armoured combat vehicles, parachute equipment, accoutrement, civil defence equipment and any other equip• ment, provided that the following two apply to them: (a) they are intended for use by the De• fence Army of Israel or a branch of the Defence Establishment designated by the Minister of Defence with the approval of the Foreign Affairs and Security Committee of the Knesset; (b) they are manufactured or intended to be manufactured according to a specifica• tion of the Defence Army of Israel or some other army;

* Passed by the Knesset on the 28th Kislev, 5737 (20th December, 1976) and published in Sefer Ha-Chukkim No. 836 of the 9th Tevet, 5737 (30th December, 1976), p. 34; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1162 of 5735, p. 143.' *) Sefer Ha-Chukkim of 5718, p. 24 — LSI vol. XII, p. 24; Sefer Ha- Chukkim of 5719, p. 92 — LSI vol. XIII, p. 96; Sefer Ha-Chukkim of 5732, p. 97 — LSI vol. XXVI, p. 117; Sefer Ha-Chukkim of 5733, pp. 26 and 202 — LSI vol. XXVII, pp. 23 and 222; Sefer Ha-Chukkim of 5736, p. 223 — LSI vol. XXX, p. 226. (3) parts, spare parts, ancillary parts and ac• cessories of military equipment as aforesaid, materials . for. its manufacture or assembly, in• cluding servicing, all as specified in paragraphs (1) and (2): "agent" includes a middleman in the purchase and sale of military equipment, a distributor of military equipment or a person otherwise acting on behalf or with the consent of a manufacturer or distributor of military equip• ment, all either regularly or occasionally, but does not include a manufacturer of military equipment; "commission" means money, money's worth, a service or any other benefit given in the form of a commission or profit or in any other form.

Receipt of 16M. (a) Save by permit under this chapter, an commission to require permit. agent shall not receive or agree to receive, directly or indirectly, a commission in connection with any transaction by which the State of Israel orders or acquires or undertakes to order or acquire foreign- made military equipment from a person in or out• side Israel. (b) A commission paid to a subagent or a person otherwise acting on behalf of an agent shall be deemed to have been paid to the agent even if such subagent or person is a non-resident.

No commission 16N. An agent shall not receive or agree to receive, on Israeli-made military directly or indirectly, a commission in connection equipment. with any transaction in military equipment ordered, or acquired in Israel by the State of Israel if the equipment is Israeli-made, and a permit to receive a commission in the case of any such transaction shall not be granted.

Application 160. An agent who wishes to receive a commission for permit. shall submit an application, on a form to be pre• scribed, to a person empowered in that behalf by the Minister of Defence. In the application, the agent shall disclose, inter alia, the amount of com-

42 mission he has received, or is entitled to receive, by agreement or usage or in any other way, from a manufacturer or distributor of military equipment.

Permit to receive 16P. The Minister of Defence may permit an agent

commission. tQ receive a commission. The permit may be for a particular transaction or class of transactions and may be subject to conditions and restrictions.

Amount of 16Q. Where a permit to receive a commission has commission. been granted, the Minister of Defence shall, by order, in consultation with the Minister of Finance, prescribe the amount of the commission, and the Minister of Defence may prescribe the modes of receiving it.

Considerations 16R. In making his decision as to the grant of a governing grant of permit. permit to an agent and as to the amount of the commission, the Minister of Defence shall especially have regard to the following: (1) the need for the agent's services in ob• taining the military equipment or the assistance necessary in obtaining it; (2) the nature, scope and quality of the services given or likely to be given by the agent; (3) the type of equipment concerned and the monetary scope of the transaction.

Appointment of 16S. (a) The Minister of Justice shall, in consulta• objection committee. tion with the Minister of Defence, appoint an objection committee of three persons for the pur• poses of this chapter; it shall include a District Court Judge, who shall be the chairman, and at least one member who is a representative of the public. (b) Notice of the appointment, composition and address of the objection committee shall be published in Reshumot. (c) For the purposes of section 18, a decision of the Minister of Defence under this chapter shall be regarded as a personal order, but an objection thereto shall only be lodged with an objection committee appointed under subsection (a). Restrictions 16T. The Minister of Defence may, with the con­ on doing business as an sent of the Minister of Justice, prescribe by regu­ agent. lations restrictions additional to those set out in the Public Service (Restrictions after Retirement) Law, 5729 —1969 1). which shall apply to a person who wishes to be an agent for military equipment. The restrictions imposed by the said Law and by regulations thereunder shall apply to such a person for a period of not less than two years.

Return of 16U. (a) Where an agent has unlawfully received commission unlawfully a commission or part of a commission, he shall received. pay it over to the Treasury within thirty days of receiving it. (b) Where an agent has unlawfully agreed to receive a commission or part of a commission, he shall notify such fact to a person empowered to receive an application for a permit under .section 16 O within fifteen days of agreeing as aforesaid.

Application to 16V. The provisions of this chapter shall also apply, body corporate controlled by mutdtis mutandis, to an agent acting in connection the State. with the ordering or acquisition of military equip­ ment for a body corporate controlled by the State.

Evidence. 16W. A certificate signed by the Minister of De­ fence or a person empowered by him in that behalf attesting that some particular equipment is military equipment shall be prima facie evidence of such fact.

Secrecy. 16X. A person who under this chapter obtains any information concerning military equipment shall keep it secret and may only disclose it as far as is necessary for the implementation of this Law or of regulations thereunder. In this section, "informa­ tion" has the same meaning as in the Penal Law (State Security, Foreign Relations and Official Se­ crets), 5717 — 1957 2V'•

i) Sefer Ha-Chukkim of 5729, p. 144; LSI vol. XXIII, p. 156. .Sefer Ha-Chukkim of 5717, p. 172; LSI vol. XI, p. 186 (־ 2. In section 39 of the principal Law— Amendment of section 39. (1) the following subsection shall be inserted after subsection (d): "(dl) In the case of an offence under section 16U (a), it shall be a good defence for the accused to prove that he did not know he had received the commission."; (2) the following subsection shall be added at the end: "(h) Where a person is convicted of an offence against any of the provisions of Chapter Two "C", the court shall, in addition to any penalty it is authorised to impose, order that the accused shall pay to the Treasury the amount or value of the commission unlawfully received. This provision shall not apply where the State has brought a civil action for the said amount or value before the termination of the criminal proceedings and shall not derogate from the power of the State to claim the 'amount or value by way of a civil action where criminal proceedings cannot be held or have been discontinued.".

3. In section 8 of the Adjudication of Interest Law, 5721 — 1961 3), Amendment of the words "and section 39 of the Commodities and Services (Control) ^terest^Law. °f Law, 5718 — 1958" shall be inserted after the words "section 6 of the Probation of Offenders Ordinance, 1944"*).

4. In section 2 (b) of the Penal Law (Offences Committed Abroad) Amendment of (Consolidated Version), 5733 — 1973 2), the following paragraph shall f^encÏT be added after paragraph (11): Committed "(12) Chapter Two "C" of the Commodities and Services (Con- Abroad>• trol) Law, 5718 — 1957".

5. This Law shall come into force upon the expiration of three Commencement, months from the date of its adoption by the Knesset.

YITZCHAK RABIN Prime Minister EFRAYIM KATZIR President of the State

Sefer Ha-Chukkim of 5721, p. 192 — LSI vol. XV, p. 214; Sefer Ha- Chukkim of 5736, p. 240 — LSI vol. XXX, p. 234. * This amendment requires the deletion of the word "and" before the expression "section 6" in the English text (Tr.). 2) Sefer Ha-Chukkim of. 5733, p. 36; LSI vol. XXVII, p. 32.

45 (No. 21)

ENGINEERING CONSTRUCTION CONTRACTORS (REGISTRATION) (AMENDMENT No. 4) LAW, 5737 — 1976 *

Amendment of 1. In section 7 (b) of the Engineering Construction Contractors

section 7. : (Registration) Law, 5719 — 1969 ) (hereinafter referred to as "the principal Law"), the words "or section 8A" shall be inserted after the words "under subsection (a)".

Amendment of 2. (a) In section 8 (a) of the principal Law — (1) in the opening passage, the words "subject to section 8A" shall be inserted between the words "their registration shall" and the words "be cancelled"; (2) in paragraph (1), "and a body corporate in liquidation, other than voluntary liquidation" shall be added at the end; (3) in paragraph (2), the words "or another offence under Chapter Ten of the Planning and Building Law, 5725 — 1965 2), designated for this purpose by the Minister with the approval of the Economic Committee of the Knesset" shall be inserted after the words "impairs his reliability with regard to being a registered contractor"; (4) the following paragraphs shall be inserted after para• graph (3): "(4) a body corporate a manager of which is a con• tractor whose registration in. the register has been cancelled under this section, unless that manager retires from his post as manager within three months from the cancellation of the registration; (5) a body corporate a manager of which has been convicted by final judgment of an offence referred to

* Published in Sefer Ha-Chukkim No. 836 of the 9th Tevet, 5737 (30th December, 1976), p. 37. This Law and the Engineers and Architects (Amendment No. 3) Law, 5737—1976, were passed by the Knesset on the 29th Kislev, 5737 (21st December, 1976) on the basis of and instead of the Planning and Building (Amendment No. 10) Bill, 5737—1976, which was published, with an Explanatory Note, in Hatzdot Chok No. 1262 of 5737, p. 16. 1) Sefer Ha-Chukkim of 5729, p. 218 — LSI vol. XXIII, p. 236; Sefer Ha- Chukkim of 5732, p. 54 — LSI vol. XXVI, p. 57; Sefer Ha-Chukkim of 5733, p. 59 — LSI vol. XXVII, p. 57; Sefer Ha-Chukkim of 5735, p. 82 — LSI vol. XXIX, p. 100. 2) Sefer Ha-Chukkim of 5725, p. 307 — LSI vol. XIX, p. 330.

46 in paragraph (2), even if he was not himself registered in the register, unless that manager retires from his post as manager within three months from the conviction; (6) a manager of a body corporate the registration of which has been cancelled under paragraph (2), (3), (4) or (5); (7) a manager of a body corporate which has been convicted of an offence under paragraph (2), even if the body corporate was not itself registered in the Register.".

(b) Section 8 (b) of the principal Law shall be replaced by the following subsection: "(b) In proceedings against the manager of a body corporate by virtue of subsection (a) (6) or (7), including proceedings under section 8A on the same grounds, it shall be a good defence if the manager proves that he did not know of the act of the body corporate by reason of which its registration was cancelled or of the offence of which it was convicted or that he took reasonable steps to prevent the commission of the act or offence. (c) In this section — "body corporate" includes a partnership; "manager of body corporate" means a member of the body actually managing the business of the body corporate, and in the case of a partnership, every partner other than a limited partner.".

3. The following section shall be inserted after section 8 of the Addition principal Law: section 8'

"Disciplinary 8A. (a) Where the particulars set out in one of measures. paragraphs (2) to (7) of section 8 (a) apply to a registered contractor, the Registrar may, if it appears to him that the degree of gravity of the act or omission does not justify cancellation of the regis• tration of the contractor in the Register, take, one or more of the following disciplinary measures: (1) a warning; (2) a reprimand; (3) a fine not exceeding the amount fixed by regulations; (4) suspension of registration in the Register for a period prescribed by him. (b) Where the Registrar decides upon suspen• sion of registration in the Register, he may, by the same decision, prescribe that it shall be. wholly or partly conditional. (c) Where the Registrar decides upon condi• tional suspension of registration in the Register, the suspension shall only be activated if, within a period not shorter than one year and not longer than three years prescribed in the Registrar's deci• sion (hereinafter referred to as "the period of con• ditional suspension"), particulars set out in section 8 (a) (2) to (7), designated in the decision, apply to the Contractor and the Registrar takes against him one of the measures provided for in this section (the act of omission concerned hereinafter referred to as a "further offence"). (d) The period of conditional suspension shall begin on the day when the Registrar's decision is notified to the contractor unless the Registrar other• wise directs. (e) Further offences may be designated by stating a class of offences or a particular offence, either by description or by reference to a provision of Law; where a provision of Law is referred to which is subsequently repealed and replaced by another provision, the Registrar's decision shall be deemed to refer to the other provision. (f) Where the Registrar decides on suspension by reason of a further offence, he shall not direct that the suspension shall be wholly conditional. (g) Where a person sentenced to conditional suspension is found guilty of a further offence, the Registrar shall order the activation of the suspension. (h) Where the Registrar, having found a con• tractor guilty of a further offence, does not by reason thereof decide on suspension, he may, not• withstanding the provision of subsection (g), instead of ordering activation of the suspension, order, for reasons which shall be recorded, that the period of conditional suspension shall be extended for an additional period not exceeding two years if he is satisfied that in the circumstances of the case it would not be just to activate the suspension. (i) The Registrar may only exercise his power under subsection (h) upon the first decision by which he finds the contractor guilty of a further offence.".

4. In section 9 of the principal Law, the expression "or 8A" shall Amendment of be inserted after the expression "section 7". section

5. The following section shall be inserted after section 11 of the Addition of

. . , T section 11 A. principal Law:

"Notification 11 A. A court which convicts an engineering con-

of conviction. struction contractor of an offence designated by regulations for the purposes of section 8 (a) (2), including a court which dismisses the whole or part of an appeal against a conviction as aforesaid, shall furnish the Registrar, through the Attorney- General, with a copy of the judgment.".

6. This Law shall come into force upon the expiration of sixty Commencement, days from the date of its publication in Reshumot.

YITZCHAK RABIN AVRAHAM OFER Prime Minister Minister of Housing

EFRAYIM KATZIR President of the State

49 (No. 22)

ENGINEERS AND ARCHITECTS (AMENDMENT No. 3) LAW, 5737 — 1976 *

Amendment of 1. In section 16 (a) of the Engineers and Architects Law, 5718 — section 16. !958!) (hereinafter referred to as "the principal Law"), the words "or of an offence under Chapter Ten of the Planning and Building Law, 5725 — 1965 2), designated for this purpose by the Minister of Labour with the approval of the Labour Affairs Committee of the Knesset" shall be inserted after the words "convicted of an offence involving ignominy".

Amendment of 2. (a) Section 17 of the principal Law shall be re-marked as section

section 17. ^ ^ paragraphs ^) an(j ^ thereof shall be re-marked as para• graphs (4) and (5), respectively, and the following paragraph shall be inserted before them: "(3) a fine not exceeding an amount prescribed by regula• tions;". (b) The following subsections shall be added after section 17 (a) of the principal Law: "(b) Where the Council decides upon suspension of a cer• tificate or. suspension of registration under subsection (a) (both hereinafter referred to as "suspension"), it may, by the same decision, direct that the suspension shall be wholly or partly conditional: (c) Where conditional suspension is decided upon, the suspension shall only be activated if, within a period not shorter than one year and not longer than three years prescribed in the decision (hereinafter referred to as "the period of conditional suspension"), the sentenced person commits an offence referred to in section 16 (a) designated

* Published in Sefer Ha-Chukkim No. 836 of the 9th Tevet, 5737 (30th December, 1976), p. 39. This Law and the Engineering Construction Con• tractors (Amendment No. 4) Law, 5737—1976, were passed by the Knesset on the 29th Kislev, 5737 (21st December, 1976) on the basis of and instead Of the Planning and Building (Amendment No. 10) Bill, 5737—1976, which was published, with an Explanatory Note, dn Hatza'ot Chok No. 1262 of 5737, p. 16. *) Sefer Ha-Chukkim of 5718, p. 108 — LSI vol. XII, p. 124; Sefer Ha- Chukkim of 5725, p. '126 — LSI vol. XIX, p. 123; Sefer Ha-Chukkim of 5732, p. 118 — LSI vol. XXVI, p. 134. 2) Sefer Ha-Chukkim of 5725, p. 307 — LSI vol. XIX, p. 330.

50 in the Council's decision and the Council finds him guilty of such offence within or after the period of additional suspension (an offence as aforesaid hereinafter referred to as a "further offence"). In the case of conviction of a criminal offence, it shall be immaterial whether the conviction took place during or after the period of conditional suspen• sion so long as the criminal offence took place during that period. (d) The period of conditional suspension shall begin on the day when the Council's decision is notified to the sentenced person unless the Council otherwise directs. (e) Further offences may be designated by stating a class of offences or a particular offence, either by description or by reference to a provision of Law; where a provision of Law is referred to which is subsequently repealed and replaced by another provision, the Council's decision shall be deemed to refer to the other provision. (f) Where the Council decides on suspension for a further offence, it shall not direct that the suspension shall be wholly conditional. (g) Where a person sentenced to conditional suspension is found guilty of a further offence, the Council shall order the activation of the suspension. (h) Where the Council, having found the sentenced person guilty of a further offence, does not by reason thereof decide on suspension, it may, notwithstanding the provision of subsection (g), instead of ordering activation of the suspen• sion, order, for reasons which shall be recorded, that the period of conditional suspension shall be extended for an additional period not exceeding two years if it is satisfied that in the circumstances of the case it would not be just to activate the suspension. (i) The Council may only exercise its power under sub• section (h) upon the first decision by which it finds the sentenced person guilty of a further offence.".

3. The following section shall be inserted after section 19 of the Addition of principal Law: section 19A•

"Notification 19A. A court which convicts an engineer or architect

of conviction. c ••in • ! , • , of a criminal offence, including a court which dis• misses the whole or part of an appeal against a

51 conviction as aforesaid, shall furnish the Council, through the Attorney-General, with a copy of the judgment. The Minister of Justice may, by order, prescribe. classes of offences in respect of which this section shall not apply.".

Commencement. 4. Section 3 shall come into force sixty days from the date of publication of this Law.

YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour

EFRAYIM KATZIR President of the. State

52 (No. 23)

MILITARY JUSTICE (AMENDMENT No. 9) LAW, 5737— 1976 *

1. (a) In section 17 of the Military Justice Law, 5715 —19551J Amendment of section 11 (hereinafter referred to as "the principal Law"), paragraph (13) is hereby repealed. (b) This section shall not derogate from the application of section 2 of the Criminal Procedure Law, 5725 — 1965 2), to military offences. 2. (a) In section 27 of the principal Law, the words "or for an Amendment of offence under section 129 or 130" shall be deleted. section (b) This section shall not derogate from the power of a court martial to impose the penalty of expulsion from the Army on a person convicted of an offence under section 129 or 130 of the principal Law.

3. In section 29 of the principal Law, the words "three hundred Amendment of pounds" and "fifty pounds" shall respectively be replaced by the scctlon 29- words "one thousand five hundred pounds" and "two hundred and fifty pounds".

4. In section 35 of the principal Law, the words "five hundred Amendment of pounds" shall be replaced by the words "two thousand five hundred sectl0n 35- pounds".

5. In section 77 of the principal Law, the words "one hundred Amendment of pounds" shall wherever occurring be replaced by the words "five sectl0n 11 • hundred pounds".

* Passed by the Knesset on the 7th Tevet, 5737 (28th December, 1976) and published in Sefer Ha-Chukkim No. 837 of the 16th Tevet, 5737 (6th January, 1977), p. 43; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1241 of 5736, p. 244. !) Sefer Ha-Chukkim of 5715, p. 171 — LSI vol. IX, ..p. 184; Sefer Ha- Chukkim of 5718, p. 122 — LSI vol. XII, p. 140; Sefer Ha-Chukkim of 5723, p. 120 — LSI vol. XVII, p. 143; Sefer Ha-Chukkim of 5724, p. 148 — LSI vol. XVIII, p. 140; Sefer Ha-Chukkim of 5729, p. 193 — LSI vol. XXIII, p. 208; Sefer Ha-Chukkim of 5730, p. 20 — LSI vol. XXIV, p. 19; Sefer Ha-Chukkim of 5732, p. 140 — LSI vol. XXVI, p. 157; Sefer Ha-Chukkim of 5734, p. 128 — LSI vol. XXVIII, p. 137; — Sefer Ha-Chukkim of 5735, p. :168 — LSI vol. XXIX, p. 261. 2) Sefer Ha-Chukkim of 5725, p. 161 — LSI vol. XIX, p. 158.

53 Repeal of 6. (a) Section 103 of the principal Law is hereby repealed. section 103. (b) This section shall not derogate from the criminal respon• sibility of a soldier under the Penal Law Amendment (Bribery), Law, 5712 —19521).

Amendment of 7. In section 109 of the principal Law, the following subsection shall section 109. be inserted after subsection (a): "(a a) A soldier who is late for a hearing of a court martial to which he has been duly summoned and who does not show sufficient cause for his lateness is liable to imprisonment for a term of one month.".

Replacement of 8. Section 122 of the principal Law shall be replaced by the sections 122 r n • !• and 123.* following section:

"Refusal to 122. A soldier who wilfully does not comply with comply with order. an order given him by a commander in the execution of his duty or refuses, by words or behaviour, to comply with such an order is liable to imprisonment for a term of three years; if he commits the offence during a combat operation of his unit, he is liable to imprisonment for a term of fifteen years.".

Amendment of 9. In section 152 of the principal Law, paragraph (3) shall be section 152. replaced by the following paragraph: "(3) a fine of an amount equal to the basic monthly pay, as at the time of imposing the penalty, of a turai (private) in com• pulsory service or, if the sentenced person is a soldier in com• pulsory service, of an amount equal to the sixth part of such pay;".

Amendment of 10. In section 153 of the principal Law, paragraph (3) shall be section 153. replaced by the following paragraph: "(3) a fine of an amount equal to twice the amount of the basic monthly pay, as at the time of imposing the penalty, of a turai in compulsory service or, if the sentenced person is a soldier in compulsory service, of' an amount equal to one third of the amount of such pay.".

!) Sefer Ha-Chukkim of 5712, p. 126; LSI vol. VI, p. 32. * The replacement of section 123 concerns merely the language of the original and thus does not affect the English version (Tr.).

54 11. Section 154 of the principal Law is hereby repealed. Repeal of section 154.

12. Section 155 of the principal Law shall be replaced by the Replacement of .... . section 155. following section:

"Requirement 155. (a) A disciplinary officer who convicts a soldier compensation. of an offence under this part may, in addition to any penalty, require him to pay compensation for the damage caused by the offence; but a junior disciplinary officer shall not under this section require an accused person to pay an amount ex• ceeding half the amount of the monthly basic pay, as at the time of making the requirement, of a turai in compulsory service, and a senior disciplinary officer shall not under this section require an accused person to pay an amount exceeding three times the amount of such pay. (b) A requirement to pay compensation under this section shall not release from liability for damage under any other law.".

13. In section 167 of the principal Law, paragraph (3) shall be Amendment of replaced by the following paragraph: section 167. "(3) where the penalty is a fine, he may reduce the amount of the fine;".

14. Section 185 shall be re-marked as section 185 (a) and the Amendment of following subsection shall be inserted thereafter : section 185. "(b) The Minister of Defence may, on the recommendation of the C.G.S., appoint an officer, being a legally qualified judge of the Appeal Court Martial, to be a permanent deputy of the President of the Appeal Court Martial.".

15. In section 186 of the principal Law•— Amendment of section 186. (1) the marginal note shall henceforth read "Presidents of special court martial and district courts martial and permanent deputies"; (2) the following subsections shall be added at the end: "(c) The C.G.S. may, upon the recommendation of the President of the Appeal Court Martial, appoint an officer, being a legally qualified military judge, to be a permanent deputy of the president of the special court martial or of the president of a district court martial.

55 (d) An officer, being a legally qualified military judge, may be appointed to be a permanent deputy to several presidents of district courts martial, and at the same time, a permanent deputy to the president of the special court martial. (e) An officer, being a legally qualified military judge, may be appointed to be a judge of the Appeal Court Martial and at the same time president of the special court martial.".

Addition of 16. The following section shall be inserted after section 186 of the section 186 A. principal Law:

"Powers of 186A. If the president of a court martial has died martfaeinto°passUto or 1S unable to exercise his powers, those powers permanent deputy, shall vest in his permanent deputy.".

Amendment of 17. In section 243 (a) of the principal Law, paragraph (2) shall be section 243. replaced by the following paragraph: "(2) in proceedings in the second instance — in a legally qualified judge of that bench of the Appeal Court Martial.".

Amendment of 18. In section 326 of the principal Law, subsection (a) shall be section 326. replaced by the following subsection: "(a) The Military Advocate General may, in order to safeguard the secrecy of information connected with the security of the State, direct, generally or in respect of a particular case, that no copy of the whole or part of the minutes of any proceedings or of a judgment, including the sentence, shall be removed from a court martial. A direction as aforesaid shall not apply to the parties or to defence counsel of an accused person for the purpose of filing appeal.".

Replacement of 19. Section 517 of the principal Law shall be replaced by the fol- section 517. , . f f lowing section:

"Prohibition of 517. (a) No person shall publish the contents or a publication of proceedings of summary of the minutes of the proceedings of a court martial. court martial or of the judgment, including the sentence, given therein in so far as the Military Advocate General has issued a direction under section 326 in respect thereof. The prohibition of publication shall apply to a party or to defence

56 counsel of an accused person even where the direc• tion does not apply to him. (b) No person shall publish anything con• cerning proceedings which it has been decided to hold in camera under section 324 or 325, save with the permission of the court or the convening authority, as the case may be. (c) No person shall take a photograph in a courtroom or publish a photograph so taken: Provided that the court may, for reasons of the public good, permit the taking or publication of a photograph. (d) A person who contravenes any provision of this section is liable to imprisonment for a term of one year."..

20. In section 521 of the principal Law, the expression "section Amendment of 518A" shall be replaced by the expression "section 517 or 518A".

21. In section 534 of the principal Law, the words "five pounds" Amendment of section 534. shall be replaced by the words "the sixth part of the monthly basic pay, as at the time of imposing the requirement, of a turai in com• pulsory service".

22. Sections 9 to 12 shall come into force upon the expiration of Commencement, thirty days from the date of publication of this Law and shall also apply to offences committed during those thirty days.

YITZCHAK RABIN SHIMON PERES Prime Minister Minister of Defence

EFRAYIM KATZIR President of the State

57 (No. 24)

EMPLOYMENT SERVICE (AMENDMENT No. 4) LAW, 5737 —1976 *

Change of 1. Wherever in the Employment Service Law, 5719 —1959 ^ hereinafter referred to as "the principal Law") or in any other) ־term enactment the term "labour exchange" appears, the term "employment service bureau" shall be substituted therefor.

Amendment of 2. In section 2 of the principal Law, the words "The Employment section 2. Service shall also concern itself with advising work-seeking young persons on the choice of an occupation and directing them to suitable work and shall maintain a follow-up of their placement and con­ tinuance in employment" shall be added at the end.

Addition of 3. The following section shall be inserted after section 4 of the section 4A. principal Law:

"Exemption 4A. For the purposes of the duty of paying taxes, from taxes. fees and other compulsory levies, the Employment Service shall be treated in like manner as the State.".

Amendment of 4. In section 17 of the principal Law, the words "with the section 17. approval of the Minister of Labour and within the framework of the establishment approved by him" shall be replaced by the words "within the framework of the establishment approved by the Minister of Labour", and the words "The appointment of the directors of district bureaux shall require also the approval of the Minister of Labour" shall be added at the end.

Amendment of 5. In section 23 of the principal Law, the words "of the Employ-

sna]j be deieted and the words "The Minister of <׳section 23. ment service Labour may also establish zonal and district bureaux of the Employ-

* Passed by the Knesset on the 7th Tevet, 5737 (28th December, 1976) and published in Sefer Ha-Chukkim No. 837 of the 16th Tevet, 5737 (6th January, 1977), p. 46; the Bill and an Explanatory Note were published in Hatzdot Chok No. !1254 of 5737, p. 351. i) Sefer Ha-Chukkim of 5719, p. 32 — LSI vol. XIII, p. 29; Sefer Ha- Chukkim of 5729, p. 77 — LSI vol. XXIII, p. 86; Sefer Ha-Chukkim of 5731, p. 80 — LSI vol. XXV, p. 77; Sefer Ha-Chukkim of 5733, p. 261 — LSI vol. XXVII, p. 304.

58 ment Service and may amalgamate zonal bureaux into district bureaux" shall be added at the end.

6. In section 27 of the principal Law — Amendment of (1) the words "whose powers, composition, mode of establish- sectlon ment, number of members and term of office shall be prescribed" shall be replaced by the words "but the Minister of Labour may, after consultation with the Management of the Employment Service, establish one board for several employment service bureaux. The powers, composition, mode of establishment, num• ber of members and term of office of an employment service bureau board shall be prescribed"; (2) the words "specified in the First Schedule" and the closing passage, beginning with the words "The Minister of Labour may", shall be deleted.

7. Section 36 of the principal Law shall be re-marked as section Amendment of 36 (a) and the following subsection shall be inserted thereafter: section "(b) The Minister of Labour may, by regulations, designate classes of employers who, on receiving a request for particulars of employees required by them whose engagement through an employment service bureau under this Law is not compulsory, shall, within seven days of receiving the request, furnish the competent employment service bureau with the particulars requested as aforesaid.".

8. Section 37 of the principal Law shall be replaced by the following Replacement of section 37. section:

"Notice of 37. (a) An employer who delivers dismissal notices dismissal to ten or more employees or delivers dismissal notices for ten or more employees to the employees' representation shall notify the dismissals to the competent employment service bureau in conformity with subsection (c). (b) The duty imposed on an employer by the provisions of subsection (a) shall also fall on him if he delivers to the employees' representation ad• vance notice of his intention to dismiss ten or more employees. (c) Notification to the employment service bureau under subsection (a) or (b) shall be made —

59 (1) if the employer's notices relate to the simultaneous dismissal of ten or more em­ ployees— at the time when the notices are delivered to the employees or to the em­ ployees' representation, as the case may be; (2) if the employer's notices relate to the successive dismissal of ten or more em­ ployees in the course of one month — at the time when notice is delivered to the tenth employee or to the employees' repre­ sentation for him, as the case may be.".

Amendment of 9. In section 79 of the principal Law, the words "two thousand

and the words "five hundred pounds" shall ״section 79. gye nuncired p0Unc[s respectively be replaced by the words "seven thousand five hundred pounds" and the words "one thousand five hundred pounds".

Amendment of 10. In section 80 of the principal Law — section 80.

(1) the expression "36 or" shall be inserted before the figure "37" in paragraph (2); (2) the words "one thousand two hundred and fifty pounds" in the closing passage shall be replaced by 'the words "three thousand seven hundred and fifty pounds.".

Amendment of 11. In section 90 of the principal Law, the figure "36 (b)" shall be

section 90. inserted after the figure "34".

Repeal of 12. The First Schedule to the principal Law is hereby repealed. First Schedule.

YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour

EFRAYIM KATZIR President of the State

60 (No. 25)

EIGHTH KNESSET (DISSOLUTION) LAW, 5737 — 1977 *

1. The Eighth Knesset shall dissolve before the completion of its Dissolution of term of office. Eighth Knesset•

2. The elections to the Ninth Knesset shall be held on Tuesday, Elections to the 29th Iyar, 5737 (17th May, 1977). Ninth Knesset•

YITZCHAK RABIN Prime Minister

EFRAYIM KATZIR President of the State

Passed by the Knesset on the 15th Tevet, 5737 (5th January, 1977) and published in Sefer Ha-Chukkim No. 838 of the 20th Tevet, 5737 (10th January, 1977), p. 50; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1274 of 5737, p. 80. (No. 26)

EMERGENCY REGULATIONS (COMMODITIES AND SERVICES (CONTROL) — FURTHER PROVISIONS) (EXTENSION OF VALIDITY) LAW, 5737 —1977*

Extension of 1. The validity of the Emergency Regulations (Commodities and validity. Services (Control) — Further Provisions), 5736—1976 *) (hereinafter referred to as "the Regulations") is hereby extended until the 23rd Elul, 5737 (6th September, 1977).

Power of 2. The Minister of Commerce and Industry may at any time, by

early revocation. order published in Reshumot, revoke the whole or part of the Regulations or restrict powers thereunder.

Commencement. 3. This Law shall come into force on the 17th Tevet, 5737 (7th January, 1977).

YITZCHAK RABIN HAIM BAR-LEV Prime Minister Minister of Commerce and Industry EFRAYIM KATZIR President of the State

• Passed by the Knesset on the 15th Tevet, 5737 (5th January, 1977) and published in Sefer Ha-Chukkim No. 838 of the 20th Tevet, 5737 (10th January, 1977), p. 50; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1271 of 5737, p. 62. *) Kovetz Ha-Takkanot of 5736, p. 226; Sefer Ha-Chukkim of 5736, pp. 84 and 236 — LSI vol. XXX, pp. 90 and 232.

62 (No. 27)

PREVENTION OF DUMPING LAW, 5737 — 1977 *

1. In this Law— Definition.

"exporting country", in relation to any goods, means the country from which the goods were imported;

"producer country", in relation to any goods, means the country in which the goods were produced or in which most of the processes involved in their production were carried out;

"Advisory Committtee" means the committee appointed under section 3;

"production costs" includes administrative expenses and a reason• able profit;

"charge" means a charge imposed under section 6;

"Director" means the Director of Customs and Excise;

"the Ministers" means the Minister of Finance and the Minister of Commerce and Industry;

"identical goods" includes goods similar in their components, form and quality;

"importer", in relation to any goods, includes a person in pos• session thereof while still under the control of the Customs and a person to whom the collector of customs has permitted entry thereof for home consumption;

"production" includes the alteration of any goods in regard to form, nature or quality or in any other respect, their blending or packing, as well as the production or cultivation of agricultural produce;

* Passed by the Knesset on the 14th Tevet, 5737 (4th January, 1977) and published in Sefer Ha-Chukkim No. 839 of the 23rd Tevet, 5737 (13th January, 1977), p. 53; the Bill and an Explanatory Note were published in Hatza'ot Chok No. M95 of 5735, p. 398. "export price" means the price f.o.b. at the port of export;

"customs officer", "collector of customs" and "the Customs" have the same respective meanings as in the Customs Ordinance1).

Dumping. 2. (a) Dumping is the import of goods the export price of which at the time of its fixing is lower than the normal price. (b) The normal price is the price, in the ordinary course of business, of identical goods intended for local consumption in the exporting country or, in the absence of such a price, one of the following: (1) the highest export price — barring exceptional cases — of identical goods exported to a third country; (2) the total production costs of identical goods in the exporting country; if these costs cannot be ascertained, the Ministers shall prescribe the basis for calculating the normal price; for the purposes of agricultural produce and products connected with agricultural production, the Ministers shall prescribe such basis in consultation with the Minister of Agriculture. (c) Where the exporting country is not the producer country and identical goods are not sold in the exporting country or are so sold but their price is not a price in the ordinary course of business, the normal price shall be determined according to the principles stated in subsection (b) as if the producer country were the exporting country. (d) Where the price of identical goods intended for local con• sumption in the exporting country or, for the purposes of subsection (c), in the producer country, is lower than the production costs, it shall not be regarded as a price in the ordinary course of business. (e) In comparing the export price with the normal price, regard shall be had to different terms of sale, different taxation and any other factor capable of affecting a realistic comparison between the two prices.

Advisory 3. (a) The Ministers shall appoint an Advisory Committee of seven,

Committee. yjz ^ieQ gtate employees representing the Ministers of Finance, Agriculture and Commerce and Industry, respectively, and four members of the public who in the opinion of the Ministers represent industrialists, agriculturists, importers and consumers, respectively.

!) Dinei Medinat Yisrael (Nusach Chadash) No. 3. p. 39; NV vol. I, p. 51.

64 (b) The representative of the Minister of Commerce and Industry shall be the chairman of the Committee. (c) Notice of the appointment, composition and address of the Committee shall be published in Reshumot.

4. (a) Every interested person may complain to the chairman of Complaint, the Advisory Committee that goods have been or are about to be imported by way of dumping and that, as a result, actual damage has been or is likely to be caused to a branch of industry or agriculture or the development of such a branch the establishment of which has commenced or is about to commence has been or is likely to be prevented. (b) If it appears to !the chairman of the Advisory Committee that the complaint is prima facie well-founded, he shall lay it before the Committee.

5. (a) The Advisory Committee shall summon the importer to Powers and appear before it and state his case. It may also summon any other Wf°rAdv[sorydUre person interested in the complaint. Committee. (b) The Ministers shall, by regulations, prescribe the work procedure of the Committee, and as far as they do not do so the Committee shall prescribe it. (c) The Committee shall lay its conclusions before the Ministers.

6. (a) Where after the Advisory Committee has submitted its Power to conclusions it appears to the Ministers that the complaint submitted impose charse• under section 4 (a) is well-founded, they may, by general order or by order in respect of a particular consignment, impose a charge on the goods: Provided that a charge on agricultural produce or on products connected with agricultural production may only be imposed in consultation with the Minister of Agriculture. (b) The charge shall be a percentage of the difference between the export price and the normal price, or a specific amount, or shall be otherwise calculated, but shall in no case exceed the amount of the said difference. (c) The charge shall apply to goods not yet released from the control of the Customs, but the Ministers may order that it shall also apply to goods released from the control of the Customs which are in the hands of the importer, provided that ninety days have not yet passed since their release and a charge has not yet been paid on them.

65 (d) The provisions of the Customs and Excise Duties (Variation of Tariff) Law, 5709 — 1949*), shall apply mutatis mutandis •to orders under ;this section as if they were orders under section 1 of the said Law.

Person liable 7. The person liable to the charge is the importer. to charge.

Power to 8. (a) Where it appears to the Director that goods to which a request temporary charge does not apply have been imported by way of dumping, he security. may request the importer to give security for payment of a charge if imposed within sixty days from the day on which the security is given. The amount of the security shall not exceed the difference between the export price of 1the goods and their value within the meaning of section 130 of the Customs Ordinance. (b) If a charge is imposed within the said period, it shall apply to goods in respect of which the security was given even if they have meanwhile been released from the control of the Customs, and the importer shall be liable to pay it even if the goods are no longer under his control. If no charge is imposed as aforesaid, the security shall be cancelled.

Power to 9. Where it appears to the Director that goods to which a general exempt. order applies have been imported otherwise than by way of dumping, he shall, after consultation with the chairman of the Advisory Com• mittee, relieve them from the charge or refund the charge if it has already been paid.

Appeal. 10. (a) A person who disputes his liability to a charge or considers himself aggrieved by a decision under section 9 may appeal to a District Court. (b) The Minister of Justice may make regulations as to the mode and time of filing appeal and as to the procedure therein.

Times and 11. (a) The charge shall be paid at the time of the release of the modes of payment goods from the control of the Customs or, if it is imposed on goods of charge. already released therefrom, within thirty days from the coming into force of the order or at the time of the sale of the goods, whichever is the earlier. (b) The Director may, on such conditions as he sees fit, defer

i) Sejer Ha-Chukkim of 5709, p. 154; LSI vol. Ill, p. 69.

66 payment of the whole or part of the charge, and he may make the deferment dependent on security being given to his satisfaction.

12. Where a charge imposed on any goods has not been paid, Immobilisation, the importer shall not until its payment transfer the ownership or possession of, or effect any transaction in, those goods or any products in the production of which they have been used, save under a written permit from the Director and in accordance with its conditions.

13. (a) Where payment of the whole or part of the charge is not Interest, made at the prescribed time or is deferred, the amount not paid shall have interest added to it, at the rate prescribed by the Minister of Finance with the approval of the Finance Committee of the Knesset, in respect of the period of the delay or deferment. The interest shall for the purposes of collection be treated like the charge. (b) The Director may waive the whole or part of the interest for special reasons which shall be recorded.

14. The Taxes (Collection) Ordinance1) shall apply to the collection

c .i u Collection of the charge. of charge.

15. The provisions of the Indirect Taxes (Overpayments and Under- Charge payments) Law, 5728 — 1968 2), shall apply to the charge. underpaid.01

16. The provisions of sections 32 to 36, 124 to 127, 136, 144, 145, Application and 150 except paragraph (2), of the Customs Ordinance shall apply legislation!8 mutatis mutandis to the charge as if it were customs duty.

17. (a) Where within one year of their release from the control Drawback of the Customs, as proved by the Customs records, any imported 0^exported goods are exported in the original package or in a package made unaltered, up in the presence of a customs officer, the amount of the charge paid thereon shall be refunded, provided that the goods have not been used in Israel and that their identity is established, to the satisfaction of the collector of customs at the point of export, by comparison with the particulars recorded at the point of import. (b) The Director may direct the refund of a charge paid on goods even though they are exported more than a year after their

1) Laws of Palestine vol. II, p. 1399 (English Edition). 2) Sefer Ha-Chukkim of 5728, p. 156; LSI vol. XXII, p. 178.

67' release if it appears to him that it is proper so to do in the circum• stances of the case, or even though they are exported after being used in Israel if it is proved that such use led to the discovery of their non-conformity with the terms under which they had been ordered or of a defect therein which existed at the time of their release and that such non-conformity or defect could not have been discovered but for such use.

Delivery of 18. (a) To ensure the implementation of this Law or the regulations information and documents. thereunder, the Director may request any person to deliver to him information, samples and documents relating to the matter concerned and to enable him to inspect and photograph them. (b) Any such photograph of a document or sample as aforesaid as bears upon it certifications by the Director and the person in possession of the document or sample or his authorised representative that it corresponds to the original shall to all intents and purposes be deemed to be the original. (c) Notwithstanding the provision of subsection (a) and without prejudice to the provisions of any Law relating to privileged evidence, the Director shall not by virtue of this section request information of the spouse, children or parents of the person liable to the charge.

Searches. 19. A person empowered by the Director in writing may, if he is satisfied that it is necessary so to do to ensure the implementation of this Law and the regulations thereunder, enter any place which is not a dwelling-house only, carry out a search thereof and seize goods and documents if there is suspicion that an offence has been committed in respect thereof or if they are likely to serve as evidence in legal proceedings, and sections 33 to 42 of the Criminal Procedure (Arrest and Searches) Ordinance (New Version), 5729 —1969*), shall apply.

Penalties. 20. (a) A person who does any of the following shall be liable to imprisonment for a term of two years or to a fine of 50,000 pounds or treble the value of the goods in connection with which the offence is committed, whichever is the larger amount: (1) without reasonable explanation delivers for the purpose of this. Law. any, information,, book,,, voucher or, other docu• ment which is false in a material particular; (2) conceals, destroys, alters or refuses to deliver any infor-

i) Dinei Medina! Yisrael (Nusach Chadash) No. 12, p. 286; NV vol. II, p. 30.

68 mation, book, voucher or other document which he has been requested to deliver under this Law:

(3) contravenes the provisions of section 12;

(4) hinders or prevents a person who acts on behalf of the Director from exercising his powers under this Law;

(5) commits any fraudulent act in order to evade payment of the charge to which he is liable.

(b) Where, in the course of the business of a person liable to a charge, an offence under this Law is committed by an employee or agent of such person, such person shall also be responsible for the offence unless he proves that he took all reasonable steps to ensure compliance with this Law or that the offence was committed without his knowledge.

(c) Where an offence under this Law is committed by a body of persons, every person who at the time of its commission was an active director, .partner,..accountant or responsible official of that body shall also be responsible for the offence unless he proves that he took all reasonable steps to ensure compliance with this Law or that the offence was committed without his knowledge.

21. Where a charge is imposed on any goods after the importer Amount of has agreed to sell them, he may, unless otherwise provided in the recoverable agreement, require the purchaser to pay him the amount thereof. from purchaser.

22. Where it appears to the Director that a person has committed Composition, an offence under any provision of this Law, he may, with the consent of that person, accept from him a monetary composition of an amount not exceeding the amount of the highest fine permitted to be imposed for that offence. Where an information has been filed for the offence, the Director shall not accept a composition so long as the Attorney-General has not ordered a stay of proceedings.

23. The provisions of this Law shall not apply to goods imported Inapplicability, by the Government and designated by the Minister of Finance as combat equipment.

24. The Director may delegate his powers under this Law, in Delegation writing, either generally or in respect of a particular matter, except of powers- powers under section 8, 9, 12, 13 (b) or 22.

69 Revocation. 25. Regulation 4 (6) of the Emergency Regulations (Compulsory Payments), 5718 —1958 1), is hereby revoked.

Implementation 26. The Ministers are charged with the implementation of this regulations. Law ar|d mav make regulations as to any matter relating to its implementation.

YITZCHAK RABIN YEHOSHUA RABINOVITZ HAIM BAR-LEV Prime Minister Minister of Finance Minister of Commerce and Industry

EFRAYIM KATZIR President of the State

1J Seier Ha-Chukkim of 5724, p. 175 — LSI vol. XVIII, p. 173; Sefer Ha- Chukkim of 5726, p. 31 — LSI vol. XX, p. 27.

70 (No. 28)

ASSOCIATIONS OF TOWNS (AMENDMENT No. 2) LAW, 5737 — 1977 *

1. In section 1 of the Associations of Towns Law, 5715 ^ 1955a) Amendment of (hereinafter referred to as "the principal Law"), in the definition of "association of towns", the words "even if not bordering on one another" shall be added after the words "association of local authorities adjacent to one another".

2. The following section shall be inserted after section 16A of Addition of . . , section 16B. the principal LawT :

"Standard 16B. (a) The Minister of the Interior may by order provisions. enact provisions for the purposes of section 15 (5) to (7) and section 16 which shall apply to every association of towns established after their enact• ment unless otherwise provided in the establishing order.

(b) The Minister of the Interior may apply provisions enacted by order under subsection (a) to an association of towns which existed before the date of their enactment, provided that thirty days' advance notice has been given to the local authorities situated in thé area of the association and they have not expressed opposition to such application. Where a local authority has expressed opposition, the provisions shall not apply unless the opposing local authority has been given an opportunity to present its arguments to the Minister of the Interior, in such manner and at such time

• Passed by the Knesset on the 20th Tevet, 5737 (10th January, 1977) and published in Sefer Ha-Chukkim No. 839 of the 23rd Tevet, 5737 (13th January, 1977), p. 57; the Law is based on two Bills which, with Ex• planatory Notes, were published in Hatza'ot Chok No. 1262 of 5737, p. 14, and Hatza'ot Chok No. 1266 of 5737, p. 30, respectively. !) Sefer Ha-Chukkim of 5715, p. 48; LSI vol. IX, p. 54; Sefer Ha- Chukkim of 5726, p. 36; LSI vol. XX, p. 30.

71 as shall be prescribed, and the Minister of the Interior has rejected the opposition.".

YITZHAK RABIN Prime Minister and Minister of the Interior

EFRAYIM KATZIR President of the State

72

I (No. 29)

NATIONAL ENERGY AUTHORITY LAW, 5737 — 1977 * CHAPTER ONE: INTERPRETATION

1. In this Law— Definitions.

"energy" means capacity for performing work, which may be utilised in the form of electricity, heat, mechanical energy and the like;

"sources of energy" means substances capable of being used as sources for the production of energy;

"energy exploration" means any operation in search of sources of energy and includes geological, geophysical, geothermal and other investigations and tests and any operation for obtaining information as to sources of energy;

"energy scheme" means a scheme for the search for or the manufacture, conversion, production, utilisation, storage, market• ing or carriage by pipeline of sources of energy and includes a scheme for petroleum exploration, petroleum production or development, within the meaning of these terms in the Petroleum Law, 5712—19521J (hereinafter referred to as "the Petroleum Law"); for this purpose, "carriage by pipeline" does not include carriage under the Concession and Subconcession referred to in the Petroleum Pipeline Concession Law, 5728 — 1968 2);

"energy handler" means a person engaged in the search for or the development, production, manufacture, conversion, pro• cessing, hoarding or storage of sources of energy or in the erection and operation of installations for such purposes as aforesaid, as well as a person engaged in the supply of sources of energy by means of a national or regional system;

« Passed by the Knesset on the 21st Tevet, 5737 (11th January, 1977) and published in Sefer Ha-Chukkim No. .840 of the 1st Shevat, 5737 (20th January, 1977), p. 61; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1220 of 5736, p. 126. i) Sefer Ha-Chukkim of 5712, p. 322; LSI vol. VI, p. 129. *) Sefer Ha-Chukkim of 5728, p. 62; LSI vol. XXII, p. 62. "energy consumers" means energy consumers in industry, agri• culture, transport and other branches of the economy;

"the Authority" means the Authority established under section 2;

"the Minister" means the Minister of Commerce and Industry.

CHAPTER TWO: ESTABLISHMENT, FUNCTIONS AND POWERS OF THE AUTHORITY,

Establishment 2. There is hereby established a National Energy Authority, the of authority. functions and powers of which shall be in accordance with the provisions of this Law.

Functions 3. (a) The functions of the Authority shall be — of Authority.

(1) to prepare schemes for a national policy for the production, utilisation and modes of use of energy; (2) to concentrate the handling of energy affairs in Israel and to supervise the acquisition, processing, marketing, stor• age and supply of sources of energy, including the refining of petroleum; (3) to prepare, and recommend the implementation of, energy schemes; (4) to approve schemes for the establishment and enlarge• ment of nuclear power stations for the production of electricity; (5) to supervise the implementation of duly approved energy schemes; (6) to initiate, carry out and encourage research concerning the search for and the production and utilisation of sources of energy; (7) to plan the husbanding of sources of energy and the allocation thereof for the different requirements of the economy; (8) to plan the use of sources of energy in times of emergency in accordance with the requirements of security and of the different branches of the economy; (9) to concern itself with agreements for the exchange of information in the field of energy, including agreements with foreign agencies; (10) to encourage energy handlers and to effect coordina-

74 tion between them in the search for sources of energy and the implementation of energy schemes; (11) to advise energy handlers and energy consumers on any matter connected with the production, development and utilisation of sources of energy and the husbanding of their use; (12) to advise the Minister on the acquisition of rights in sources of energy in Israel and abroad. (b) The Authority shall prescribe, the modes of carrying out its functions.

4. (a) The Authority shall with the approval of the Minister Powers of Authority. be competent to make regulations as to — (1) the, search for and production of sources of energy; (2) the implementation of energy schemes; (3) the use of sources of energy; (4) the husbanding of sources of energy, (b) Any matter which the Authority is authorised to regulate by regulations under this section it may also by regulations prohibit, restrict, place under supervision or inspection or make subject to conditions, including conditions as to obtaining a general or special permit.

5. (a) Whoever is authorised under any law to prescribe, or to Consultation with Authority. grant a permit for increasing, the prices of sources of energy shall before doing so consult with the Authority. (b) A draft budget for the financing of energy schemes within the framework of the Budget Law shall be prepared in consultation with the Authority.

6. The Authority may request from energy handlers and energy Request for consumers information and documentation for the purpose of pre• paring researches and energy schemes and following up the imple• mentation of such schemes. Information and documentation delivered upon request as aforesaid shall only be used for the said purposes.

CHAPTER THREE: ORGANISATION OF AUTHORITY

The Authority shall consist of twenty members, viz. — Composition (1) the Chairman of the Authority, appointed by the Government of Author,ty• uopn the recommendation of the Minister;

75 (2) the Director-General of the Authority, appointed as provided in section 8; (3) two members appointed by the Prime Minister; (4) two members appointed by the Minister of Finance; (5) six members appointed by the Minister, three of them upon the recommendation of the Israel Academy of Sciences and Humanities; (6) eight members with a knowledge of energy-related subjects, appointed by the Minister upon the recommendation of the Ministers of Defence, Health, Foreign Affairs, Agriculture, the Interior, Housing, Transport and Tourism, respectively.

Director of 8. The Government shall upon the recommendation of the Minister Authority. appoint a Director-General of the Authority (hereinafter referred to as "the Director of the Authority"). The duty of announcing a vacancy under section 19 of the State Service (Appointments) Law, 5719 — 1959 1). shall not apply to the appointment.

Notice. 9. Notice of the appointment of the Chairman of the Authority, its members and its Director shall be published in Reshumot.

Period of 10. The members of the Authority shall be appointed for three years tenure. and may be reappointed.

Cessation 11. (a) A member of the Authority shall cease to serve as a of tenure. member thereof before the expiration of his period of tenure if — (1) he resigns by tendering a letter of resignation to the Minister or (2) he is permanently unable to carry out his functions or (3) he is convicted of an offence which in the opinion of the Attorney-General involves moral turpitude. (b) A member of the Authority who is a State employee shall cease to serve as a member thereof when he ceases to be a State employee.

Appointment 12. Where a member of the Authority dies, or ceases to serve under of substitute. section 11, the Minister shall appoint a substitute for him for the remainder of his period of tenure in the same manner in which the member was appointed under section 7.

i) Sefer Ha-Chukkim of 5719, p. 86; LSI vol. XIII, p. 87.

76 13. (a) The Authority shall prescribe procedure for its work and Rules of deliberations in so far as it has not been prescribed by or under Procedure• this Law. (b) Five members of the Authority shall be a quorum at its meetings. (c) A decision of the Authority shall at any meeting be passed by a majority of the votes of the members present and voting, provided that a quorum is present at the time. (d) If the Chairman of the Authority is absent from any meeting, another member shall be elected thereat to be chairman of the meeting.

14. The Chairman of the Authority shall convene the Authority Convening of at least once in two months or at the request of the Minister or Autnoritv• of five members.

15. The Authority may appoint permanent and ad hoc committees Committee, from among its members or otherwise. The findings of a committee shall be regarded as recommendations to the Authority, which may adopt, alter or reject them.

16. (a) The Authority may delegate any of its powers to the Delegation Director of the Authority or to a committee of members thereof, 0 powers• except powers under section 4 and any power which the Minister has notified the Authority shall not be delegated. (b) The Director of the Authority may, with the approval of the Chairman of the Authority, delegate any of its powers to an employee of the Authority.

CHAPTER FOUR: COUNCIL OF AUTHORITY

17. (a) The Minister shall appoint a Council of the National Energy Appointment. Authority (hereinafter referred to as "the Council"), which shall advise him on any matter relating to the implementation of this Law. (b) The Minister shall appoint to the Council five members of the Authority, including the Chairman of the Authority, and twenty-six members representing,.energy .handlers, ,energy.,.consumers, .and,,insti- . tutions engaged in matters of energy or in research'in the field" of " energy. '(c) The Minister shall appoint the Chairman of the Council from among the members thereof. (d) The members of the Authority who are not members of the Council may take part in the meetings of the Council without voting rights. (e) Notice of the appointment of the members of the Council shall be published in Reshumot.

Period of 18. A member of the Council shall be appointed for three years tenure. and may be reappointed not more than twice.

Cessation of 19. (a) A member of the Council shall cease to serve as a member tenure. thereof before the expiration of his period of tenure if — (1) he resigns by tendering a letter of resignation to the Minister or (2) he is permanently unable to carry out his functions or (3) he is convicted of an offence which in the opinion of the Attorney-General involves moral turpitude. (b) Where criminal proceedings have been instituted against a member of the Council for an offence which in the opinion of the Attorney-General involves moral turpitude, the Minister may suspend him from membership of the Council. (c) A State employee appointed to be a member of the Council shall cease to serve as a member thereof when he ceases to be a State employee.

Procedure. 20. (a) The Council shall prescribe procedure for its work and deliberations and may appoint committees. (b) Ten members of the Council, including the Chairman; shall be a quorum at its meetings.

Convening. 21. The Chairman of the Council shall convene the Council at least once in four months or at the request of the Minister or of ten members,

Expenses. 22. The Minister may prescribe that members of the Council who are not State employees shall be reimbursed out of the Treasury for expenses involved in carrying out their duties.

CHAPTER FIVE: MISCELLANEOUS PROVISIONS

Employees of 23. The employees of the Authority shall be State employees. Authority.

Power. 24. Where the Minister is authorised to approve the making of

78 regulations in respect of a particular matter under section 4 and regulations have not been made as aforesaid, he may make such regulations himself provided that he has first consulted with the Chairman of the Authority and given the Authority at least sixty days' respite to make the regulations.

25. (a) The Minister may, in consultation with the Chairman of Advisory the Council, appoint an Advisory Committee on Regulations (here- Regulations.011 inafter referred to as "the Committee") from among the members of the Council. The Committee shall be headed by the Chairman of the Council. (b) The Minister shall ask the opinion of the Committee before approving regulations under section 4 or making regulations under section 24. (c) Where the Committee has been asked its opinion under subsection (b), it shall bring the proposed regulations to the notice of representatives of such energy handlers or such energy consumers as in its view are concerned and shall give them a suitable opportunity to be heard. (d) The Committee shall give its opinion to the Minister not later than thirty days from the day on which the Minister's request under subsection (b) is communicated to the Chairman of the Council, unless the Minister has prescribed a later date. (e) The Committee's opinion shall be reasoned and shall state the viewpoint of energy handlers or energy consumers as expressed before it.

26. A person shall disclose nothing about the deliberations of the Secrecy. Authority or Council or about any material delivered to either of them unless the Chairman of the Authority or the Minister has empowered him to make the disclosure.

27. Any power vested by the Mining OrdinanceJ) in a controller, or Power under the Director, within the meaning of that Ordinance, shall, as to ordinance, everything relating to minerals declared by the Minister, by notice in Reshumot, to be sources of energy, vest in the Director of the Authority, who shall exercise it in consultation with the Authority.

28. In the Petroleum Law — Amendment of ־the following definitions shall be added at the end of Petroleum Law (1) section 1

!) Laws of Palestine vol. 11,' p. 938 (English Edition).

79 " "the Authority" means the National Energy Authority established under the National Energy Authority Law, 5737 — 1977; "the Director" means the Director-General of the Authority."; (2) sections 2 and 3 are hereby repealed; (3) the words "the Board" shall wherever occurring be replaced by the words "the Authority".

Amendment of 29. In section 2 of the Operation of Vehicles (Engines and Fuel) Operation of Vehicles Law. Law, 5721 —1960*), the words "The Minister of Finance may, in consultation with the Minister of Transport" shall be replaced by the words "The Minister of Commerce and Industry may, in consultation with the Ministry of Transport and with the National Energy Au• thority established under the National Energy Authority Law, 5737 — 1977".

Implementation. 30. The Minister is charged with the implementation of the Law and may make regulations as to any matter relating to its implementa• tion.

Commencement. 31. This Law shall come into force upon the expiration of six months from the date of its publication in Reshumot.

YITZCHAK RABIN HAIM BAR-LEV Prime Minister Minister of Commerce and Industry

EFRAYIM KATZIR President of the State

i) Sefer Ha-Chukkim of 5721, p. 12; LSI vol. XV, p. 8.

80 (No. 30)

BINATIONAL SCIENCE FOUNDATION LAW, 5737 — 1977 *

1. In this Law— Definitions, "the Foundation" means the United States — Israel Binational Science Foundation established under the Foundation Agreement; "the Foundation Agreement" means the Agreement between the Government of Israel and the Government of the United States of America signed on September 27, 1972, and includes an Exchange of Letters between the said Governments of the same date 1).

2. The Foundation shall be a body corporate, competent in respect Body corporate, of any right, obligation and legal act.

3. The Foundation shall be organised and managed in accordance Organisation with the Foundation Agreement and with the rules of procedure management of and regulations made thereunder. Foundation.

4. The Bank of Israel may accept deposits from the Foundation. Deposits with Bank of Israel.

5. The Government may, with the approval of the Finance Com- Variations mittee of the Knesset, propose and agree to variations in the Founda- Foundation tion Agreement. Agreement.

6. The Minister of Finance is charged with the implementation of Implementation this Law and may make regulations as to any matter relating to regulations, the implementation of the provisions of the Foundation Agreement and the fulfilment of the obligations of the State thereunder and, in particular, as to the grant of exemption from taxes and compulsory payments under article 12 of the Foundation Agreement.

YITZCHAK RABIN YEHOSHUA RABINOVITZ EFRAYIM KATZIR Prime Minister Minister of Finance President of the State

* Passed by the Knesset on the 28th Tevet, 5737 (18th January, 1977) and published in Sefer Ha-Chukkim No. 841 of the 8th Shevat, 5737 (27th January, 1977), p. 68; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1232 of 5736, p. 199. !) Kitvei Amana vol. XXIII, pp. 155 and 164A.

81 (No. 31)

PENAL LAW AMENDMENT (INTERRUPTION OF PREGNANCY) LAW, 5737 — 1977 *

Definitions. 1. In this Law — "recognised medical institution" means an institution or clinic recognised by the Minister of Health as a medical institution for the purposes of this Law and notice of whose recognition has been published in Reshumot; "gynaecologist" means a qualified medical practitioner holding the title of specialist in obstetrics and gynaecology conferred on him under the Medical Practitioners Ordinance (New Version), 5737 —1976 *) (hereinafter referred to as "the Ordinance") or a qualified medical practitioner who, for the purpose of obtaining that title, undergoes specialised training at a recognised medical institution under the supervision of a medical practitioner holding the said title.

Prohibition of 2. Any person who knowingly interrupts a woman's pregnancy, interruption of pregnancy. either by medical treatment or an any other manner, shall be liable to imprisonment for a term of five years or a fine of fifty thousand pounds.

Approved 3. A gynaecologist shall not bear criminal responsibility for inter• interruption of pregnancy. rupting a woman's pregnancy if — (1) it is performed at a recognised medical institution and (2) approval under section 5 has been given in advance.

Committee. 4. Approval for the purposes of section 3 shall be by a committee of three. Its members shall, in the case of a recognised medical institution which is a hospital registered under section 25 of the Public Health Ordinance, 1940 2), be designated by the manager of the institution, and in the case of any other recognised medical institution, by the Minister of Health or a person empowered by him in that behalf.

Passed by the Knesset on the 12th Shevat, 5737 (31st January, 1977) and published in Sefer Ha-Chukkim No. 842 of the 21st Shevat, 5737 (9th February, 1977), p. 70; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1217 of 5736, p. 101. l) Dinei Medinat Yisrael (Nusach Chadash) No. 30, p. 594. 2) P.G. of 1940, Suppl. I, p. 239 (English Edition).

82 The committee shall consist of — (1) a qualified medical practitioner holding the title of specialist in obstetrics and gynaecology under the Ordinance; (2) another qualified medical practitioner practising obstetrics and gynaecology, internal medicine, psychiatry, family medicine or public health; * (3) a person registered as a social worker under the Welfare Services Law, 5718 — 1958 1).

5. (a) The committee may, after obtaining the woman's informed Approval, consent, approve the interruption of pregnancy if it considers it justified on one of the following grounds:

(1) the woman is under marriage age or has completed her fortieth year; (2) the pregnancy is due to relations prohibited by the criminal law or incestuous relations, or to extramarital relations; (3) the child is likely to. have a physical or mental defect; (4) continuance of the pregnancy is likely to endanger the woman's life or cause her physical or mental harm; (5) continuance of the pregnancy is likely to cause grave harm to the woman or her children owing to difficult family or social circumstances in which she finds herself or which prevail in her environment. (b) For the purposes of this section, a woman's informed consent means her written consent to the interruption of her pregnancy after the physical and mental risks involved in the interruption have been explained to her; for this purpose, the consent of a minor does not require the approval of her representative. (c) The committee shall not refuse its approval before the woman has been given an opportunity to appear before it and state her reasons to it. (d) The approval shall be in writing and shall set out the ground justifying the interruption of the pregnancy.

6. A qualified medical practitioner shall not bear criminal respon- Interruption of sibility for interrupting a woman's pregnancy in any of the following fp^!1^^ cases, provided that reasoned notification is made to the Director-

0 Sefer Ha-Chukkim of 5718, p. 103; LSI vol. XII, p. 120.

83 general of the Ministry of Health, in writing, within five days after the act: (1) it is necessary to interrupt the pregnancy, forthwith in order to save the woman's life or to preserve her from grave irreparable injury; (2) the pregnancy is interrupted in the course of other medical treatment performed on the woman's body, the practitioner did not know of the pregnancy before and its interruption is necessary for that treatment.

Objection for 7. Approval under this Law shall not bind a gynaecologist to reasons of conscience or interrupt a pregnancy if this is contrary to his conscience or medical medical judgment. considerations.

1 Inapplicability. 8. Section 18 of the Criminal Code Ordinance, 1936 X shall not apply to an offence under this Law.

Restriction on 9. A woman upon whom an offence under this Law is committed criminal responsibility. shall not bear criminal responsibility in connection with that offence.

Repeal. 10. Sections 175 and 177 of the Criminal Code Ordinance, 1936, are hereby repealed.

Implementation 11. The Minister of Health is charged with the implementation of and this Law and may, in consultation with the Minister of Justice and regulations. the Public Services Committee of the Knesset, make regulations for its implementation, and inter alia, regulations as to — (1) conditions for the approval of a medical institution as a recognised institution, procedure for the grant of ,such approval and the period of validity, renewal and cancellation thereof; (2) procedure for the grant of approval under section 5.

Commencement. 12. This Law shall come into force one year after its publication in Reshumot, but the Minister of Health may prescribe by notice in Reshumot that it shall come into force at an earlier date.

YITZCHAK RABIN VICTOR SHEMTOV Prime Minister Minister of Health EFRAYIM KATZIR President of the State

i) P.G. of 1936, Suppl. I, p. 285 (English Edition). (No. 32)

KNESSET ELECTIONS (AMENDMENT No. 6) LAW, 5737 — 1977 *

1. In section 8 (b) of the Knesset Elections Law (Consolidated Amendment of 8־ Version), 5729 —1969 ^ (hereinafter referred to as "the principal sectl0n Law"), the words "more than 500 polling districts" shall be replaced by the words "more than 400 polling districts" and the words "at least 200 polling districts" shall be replaced by the words "at least 100 polling districts".

2. In section 21 of the principal Law — Amendment of section 21. (1) subsections (a) to (e) shall be replaced by the following subsections: "(a) The Central Committee shall each year prescribe the number of members of each Polling Committee and its composition of members of party groups represented on the Central Committee, and it may also prescribe the party groups to which the chairman and vice-chairman of the Polling Committee shall belong, provided that not less than three party groups shall be represented on every Polling Committee. (b) Every member of a Polling Committee shall have two permanent deputies on behalf of his party group, but a party group may request that a member on its behalf shall have three permanent deputies. (c) In accordance with the decisions of the Central Com­ mittee under subsection (a), the District Committees shall appoint the Polling Committees not later than the twentieth day before election day. (d) Where the number of members and party composition of a Polling Committee have been prescribed under sub-

* Passed by the Knesset on the 12th Shevat, 5737 (31st January, 1977) and published in Sefer Ha-Chukkim No. 843 ,of the 21st Shevat, 5737 (9th February, 1977), p. 74; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1259 of 5736, p. 369. i) Sefer Ha-Chukkim of 5729, pp. 103 and 196 — LSI vol. XXIII, pp. 110 and 211; Sefer Ha-Chukkim of 5730, p. 146 — LSI vol. XXIV, p. 153; Sefer Ha-Chukkim of 5733, pp. 74, 108 and 152 — LSI vol. XXVII, pp. 69, 106 and 167.

85 section (a) and a party group does not notify the District Committee of the names of its representatives on the Polling Committee within a period prescribed by the District Com• mittee or before the twenty-third day before election day, whichever is the earlier, the Polling Committee shall be formed without representatives of •that party group."; (2) subsections (f) and (g) shall be re-marked as subsections (e) and (f).

Amendment of 3. In section 21A of the principal Law, the following subsection section 21A. shall be added after subsection (b): "(c) The chairman of the Pölling Committee may entrust the preparation of the record mentioned in section 79 (b) to the secretary of the Polling Committee.".

Amendment of 4. In section 60 of the principal Law, the words "fifteen thousand section 60. pounds" shall be replaced by the words "forty thousand pounds".

Amendment of 5. In section 66 of the principal Law, the words "an amount of section 66. three thousand pounds out of the amount deposited upon its sub• mission shall be forfeited" shall be replaced by the words "one fifth of the amount deposited upon its submission shall be forfeited".

Amendment of 6. In section 71 (b) of the principal Law, the words "The list section 71. shall be delivered to the chairman of the Polling Committee but may be delivered to the secretary of 'the Committee for transmission to the chairman or his deputy" shall be added at the end.

Addition of 7. The following section shall be inserted after section 71 of the section 71 A. principal Law:

"Designation of 71 A. Not later than the 45th day before election public services. day, the Central Committee shall designate the kinds of services to be regarded as public services for the purposes of section 10 of the Basic Law: The Knesset1) and the hours of their operation. The Committee shall publish notice of the desig• nation, in such• manner as it sees fit, not-later than the 35th day before election day.".

i) Sefer Ha-Chukkim of 5718, p. 69; LSI vol. XII, p. 85.

86 8. In section 79 of the principal Law — Amendment of section 79.

(1) the words "Where the record has been prepared by the secretary of the Committee, it shall be signed also by him" shall be added after 'the words "or a vice-chairman" in subsection (d); (2) the following subsection shall be added after subsection (d): "(e) The chairman of the Central Committee may correct an arithmetical error in the record of a Polling Committee or District Committee.".

9. In section 119 of the principal Law— Amendment of section 119. (1) in subsection (a), the expression "2,500 pounds" shall be replaced by the expression "10,000 pounds" and the following paragraph shall be added after paragraph (7):

"(8) a person who after the voting envelopes have been removed from the polling-box destroys one of them before it has been included in the count of the votes.";

(2) in subsection (b), the expression "5,000 pounds" shall be replaced by the expression "20,000 pounds".

10. In section 120 of the principal Law, the expression "5,000 Amendment of pounds" shall be replaced by the expression "20,000 pounds". section

11. In section 121 of the principal Law, the expression "5,000 Amendment of section 121 pounds" shall be replaced by the expression "20,000 pounds".

12. In section 122 of the principal Law, the expression "5,000 Amendment of pounds" shall be replaced by the expression "20,000 pounds". section

13. In section 124 of the principal Law, the expression "2,500 Amendment of 124־ pounds" shall be replaced by the expression "10,000 pounds". sectl0n

14. In section 125 of the principal Law, the expression "2,500 Amendment of pounds" shall be replaced by the expression "10,000 pounds". section 125.

15. In section 126 of the principal Law, the expression "250 Amendment of pounds" shall be replaced by •the expression "1,000 pounds". sectl0n 126,

87 Amendment of 16. In section 127 of the principal Law, the expression "100 section 127. pounds" shall be replaced by the expression "500 pounds".

YITZCHAK RABIN SHLOMO HIIXEL Prime Minister Minister of the Interior

EFRAYIM KATZIR President of the State

88 (No. 33)

ELECTIONS (NINTH KNESSET) (TEMPORARY PROVISIONS) LAW, 5737 — 1977*

.1. The following shall also be entitled to vote in the elections to Right to vote, the Ninth Knesset:

(1) a person whose eighteenth birthday, according to the entry in the Population Register, falls between the 15th Av, 5736 (11th August, 1976) and the 29th Iyar 5737 (17th May, 1977);

(2) a person of full age who became an Israel national between the 1st Nisan, 5736 (1st April, 1976) and the 10th Tevet, 5737 (31st December, 1976) and who on the 10th Tevet, 5737 (31st December, 1976) was an Israel national and registered as a resident in the Population Register with his address.

2. (a) The Minister of the Interior shall prepare for each polling Supplement to voters' list district a supplement to the voters' list (hereinafter referred to as a "supplement"), which shall include every person entitled to vote under subsection 1 and registered in the Population Register as a resident of that district. (b) The provisions of sections 29, 30 and 71 (a) of the Knesset Elections Law (Consolidated Version), 5729 —19691). (hereinafter referred to as "the Elections Law"), shall apply mutatis mutandis to a supplement. (c) The provisions of sections 33 to 51 and 55A of the Elections Law shall not apply to a supplement. 3. Where a person has been registered in a supplement, the Notices to ־Minister of the Interior shall, not later than the 22nd Shevat, 5737 voter (10th February, 1977), send him by post a notice to such effect. The notice shall state the particulars referred to in section 32 of the Election Law.

4. Until the 7th Adar, 5737 (25th February, 1977) — Application and objections. (1) a person entitled to be included in a supplement may file

* Passed by the Knesset on the 12th Shevat, 5737 (31st January, 1977) and published in Sefer Ha-Chukkim No. 843 of the 21st Shevat, 5737 (9th February, 1977), p. 76; the Bill and an Explanatory Note were published in Hatzdot Chok No. 1278 of 5737, p, 99. !) Sefer Ha-Chukkim of 5729, p. 103; LSI vol. XXIII, p. 110.

89 with the Minister of the Interior a written application to correct particulars relating to him and incorrectly stated in the notice, or an application to remove his name from the supplement in which it is included and to include it in the supplement of a polling district within another locality of which he is a resident according to a notification made under the Population Registry Law, 5725 — 1965 (2) a person entitled to be included in the Voters' Register for the register year in respect of which the determining date is the 1st Nisan, 5736 (hereinafter referred to as "the 5736 Register") and a person entitled to be included in a supplement may file with the Minister of the Interior a reasoned objection in writing to his non-inclusion in the 5736 Register or the supplement.

Decision on 5. The Minister of the Interior shall decide on applications and applications and objections. ' objections submitted as aforesaid and shall notify his decision in writing to the applicant or objector by the 24th Adar, 5737 (14th March, 1977).

Correction of 6. A person whose objection under section 4 (2) has been allowed supplement. shall be included in the supplement.

Supplement to be 7. Every copy of a voters' list required to be delivered under

attached to list. sect[oQ 71 (b) of the Elections Law shall be accompanied by a copy of the supplement relating to that list.

Complaints and 8. The provisions of section 137 of the Elections Law shall apply

applications. tQ ac(. Qr omjssjon under this Law.

Transitional 9. The 5736 Register with the supplements shall be in force until

provisions. ^ 22nd M&T ^ 5?3g Nq Voters> Register shall be prepared for the register year 5737.

Voters' Register 10. The provisions of the Elections Law shall apply to the Voters' 5738th6 year Register for the register year 5738 with the following modifications:

(1) in section 1, in the definition of "the determining day", the words "the 1st Nisan" shall be replaced by the words "the 20th Cheshvan";

0 Sefer Ha-Chukkim of 5725, p. 270; LSI vol. XTX, p. 288.

90 (2) in sections 28 and 54, the words "the 15th Av" shall be replaced by the words "the 23rd Adar Bet".

11. The provisions of regulations 2 (a), 3, 5 (1) and 10 of the Filing of Knesset Voters' Register (Procedure for Filing Applications and obfic^ons"8 Objections) Regulations, 5720 —19601), shall apply to the filing of applications and objections under section 4.

12. The provisions of seotion 11 of the Knesset Elections (Con- Applicability solidated Version) (Amendment) Law, 5729 — 1969 2), and the Knesset provisions^"7 Elections (Temporary Provisions) Law, 5730 — 1969 3), shall apply to the elections to be held in the year 5737.

13. This Law shall come into force on the date of its adoption Commencement, by the Knesset.

YITZCHAK RABIN SHLOMO HILLEL Prime Minister Minister of the Interior

EFRAYIM KÀTZIR President of the State

!) Kovetz Ha-Takkanot of 5720, p. 724. «) Sefer Ha-Chukkim of 5729, p. 196; LSI vol. XXUI, p. 211. o) Sefer Ha-Chukkim of 5730, p. 2; LSI vol. XXIV, p. 3.

91 (No. 34)

LOCAL AUTHORITIES (BENEFITS TO HEAD AND DEPUTY HEADS) LAW, 5737 — 1977 *

Definitions. 1. In this Law — "local authority" means a municipality or a local council;

"head of authority" means the head of a local authority and includes his paid deputies.

Benefits and 2. The head of an authority and his survivors shall be paid benefits other payments. and other payments out of the fund of the local authority, as shall be prescribed by resolutions of the Knesset, which may empower one of its committees in that behalf. The first resolution under this section shall have effect from the date of the coming into force of this Law.

Other 3. A resolution under section 2 may prescribe that — advantages, capitalisation and continuity (1) the head of an authority, or his survivors as designated, of rights. shall, in addition to the benefits and other payments payable after the period of tenure, be granted an advantage or service which shall be prescribed; (2) the right to and extent of the benefits, other payments, advantage or service shall be prescribed having regard to the task performed by the head of the authority, his period of service or any other factor which may be prescribed; (3) the head of an authority may, on conditions which shall be prescribed, capitalise such part of the benefits due to him as shall be prescribed; (4) for the purpose of determining the right to and amount of a benefit, the whole or part of earlier periods of tenure as the head of an authority may be added to the last period of tenure, and periods of tenure, service and work for remuneration in the State or one of its institutions or enterprises, in another local authority or in such other public institutions as shall be pre-

* Passed by the Knesset on the 14th Shevat, 5737 (2nd February, 1977) and published in Sefer Ha-Chukkim No. 843 of the 21st Shevat, 5737 (9th February, 1977), p. 77; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1265 of 5737, p. 26.

92 scribed may also be added, all on such conditions as shall be prescribed; (5) amounts which the person entitled to a benefit receives as a salary or benefit from a public fund, within the meaning of section 35 of the State Service (Benefits) (Consolidated Version) Law, 5730 —19701). shall be deducted from a benefit payable; (6) a benefit payable to survivors not living in the same household shall be apportioned in such manner as shall be prescribed; (7) where, in respect of any period, a deputy head of an authority received no salary because he had waived it, any such part of such period as preceded the date of publication of the results of the first elections for that local authority sub• sequent to the publication of this Law (hereinafter referred to as "the date of publication of the results of the first elections") may, on such conditions as shall be prescribed, be added to the period of tenure referred to in paragraph (4).

4. Resolutions under section 2 shall be published in Reshumot Publication of resolutions.

5. The head of an authority shall receive the benefit from the Reimbursement local authority in which he last held office, and the same shall be payme'Jff1 entitled to be reimbursed for part of the benefit moneys by authorities and other bodies in respect of which periods of tenure therein were taken into account under section 3 (4), or by their successors, in amounts proportionate to the respective periods of tenure in such authorities or bodies.

6. The Local Authorities (Benefits to Head and Deputy Heads) Repeal. Law, 5719 — 1959 2) (hereinafter referred to as "the 5719 Law") is hereby repealed.

7. (a) This Law and the resolutions adopted thereunder shall Saving of not derogate from any right acquired by, or accrued to, a person rights- who has been the head of an authority, or his survivors, under the 5719 Law. (b) So long as not otherwise prescribed by resolution under

1) Sefer Ha-Chukkim of 5730, p. 65; LSI vol. XXIV, p. 57. 2) Sefer Ha-Chukkim of 5719, p. 211; LSI vol. XIII, p. 230.

93 section 2, benefits to a person who has been the head of a local authority or to his survivors shall be paid under the 5719 Law.

Transitional 8. Notwithstanding the provision of section 6, the 5719 Law provisions. shall continue to apply to a deputy head of a local authority who immediately before the publication of this Law holds office without a salary because he has waived it, and to his survivors: Provided that if he continues to hold office as an unsalaried deputy head of a local authority after the date of publication of the results of the first elections, only his period of tenure preceding the date of publication of the results of the first elections shall be taken into account for the purpose of determining the right to and amount of a benefit.

Implementation 9. The Minister of the Interior and the Minister of Finance are and regulations. charged with the implementation of this Law and may, with the approval of a committee to be designated by the Knesset, make regulations as to any matter relating to such, implementation, including — (1) procedure for the filing of claims for benefits; (2) payment procedure and times of payment; (3) the method of capitalisation of pensions; (4) the payment of a benefit otherwise than to the person entitled.

YITZCHAK RABIN SHLOMO HILLEL YEHOSHUA RABINOVITZ Prime Minister Minister of the Minister of Finance Interior

EFRAYIM KATZIR President of the State

94 (No. 35)

STATE SERVICE (BENEFITS) (AMENDMENT No. 16) LAW, 5737 — 1977 *

1. In section 32 of the State Service (Benefits) (Consolidated Amendment of 32־ Version) Law, 5730 —1970 *) (hereinafter referred to as "the prin- seotlon cipal Law"), the following subsection shall be inserted after sub­ section (f): "(g) Notwithstanding anything provided in this section, sub­ section (b) shall, in the case of either of the following, be read as if the expression "70 per cent", in the two places in which it occurs, were replaced by the expression "90 per cent": (1) a widow entitled to two benefits, one a survivor's pension in consequence of her husband's death, the other a retirement pension; (2) a person entitled to two benefits, one a retirement pension or a survivor's pension of a widow, the other a pension by reason of an employment injury under the National Insurance Law.".

2. This Law shall have effect from the 1st Nisan, 5736 (1st Commencement. April, 1976).

3. This Law shall, in respect of the time subsequent to its Transitional coming into force, apply also— provisions. (1) for the purposes of section 32 (g) (1) of the principal Law — to the widow of a person who died before then; (2) for the purposes of section 32 (g) (2) of the principal Law — to a pension due by the right of a person who retired from the Service before then, unless severance pay was paid in con­ sequence of the retirement.

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance EFRAYIM KATZIR President of the State

Passed by the Knesset on the 20th Shevat, 5737 (8th February, 1977) and published in Sefer Ha-Chukkim No. 844 of the 29th Shevat, 5737 (17th February, 1977), p. 82; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1275 of 5737, p. 84. Sefer Ha-Chukkim of 5730, p. 65 — LSI vol. XXIV, p. 57; Sefer Ha- Chukkim of 5733, p. 255 — LSI vol. XXVII, p. 294; Sefer Ha-Chukkim of 5736, p. 273 — LSI vol. XXX, p. 267.

95 (No. 36)

POLITICAL PARTIES (FINANCING) (TEMPORARY PROVISIONS) LAW, 5737 — 1977 *

Definitions. 1. In this Law, every term shall have the same meaning as it has in the Political Parties (Financing) Law, 5733 — 1973 l) (hereinafter referred to as "the principal Law").

Special 2. A party group which has complied with the provisions of advance payment. section 6 (a) and has delivered to the Chairman of the Knesset a written declaration signed by a majority of its members that it will submit a list of candidates for the Ninth Knesset at the date prescribed by Law shall be made a special advance payment on account of election expenses. The special advance payment shall be made on the 25th Shevat, 5737 (13th February, 1977) and shall be at the rate of 36 per cent of one financing unit per Knesset Member belonging to the party group on the said day.

Set-off. 3. The amounts of the special advance payment shall be set off against the advance payment due to the party under section 4 of the principal Law, and for this purpose it shall have interest added to it at the rare of one half per cent in respect of every week or fraction thereof from the date of payment of the special advance payment to the date of payment of the advance payment due as aforesaid.

Implementation. 4. The Chairman of the Knesset is charged with the implementation of this Law.

Commencement. 5. This Law shall come into force on the date of its adoption by the Knesset. YITZCHAK RABIN Prime Minister EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 20th Shevat, 5737 (8th February, 1977) and published in Sefer Ha-Chukkim No. 844 of the 29th Shevat, 5737 (17th February, 1977), p. 82; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1283 of 5737, p. 120. i) Sefer Ha-Chukkim of 5733, p. 52 — LSI vol. XXVII, p. 48; Sefer Ha- Chukkim of. 5735, p. 84 — LSI vol. XXIX, p. 104.

96 (No. 37)

DISCHARGED SOLDIERS (REINSTATEMENT IN EMPLOYMENT) (AMENDMENT No. 7) LAW, 5737 —1977*

1. In section 1 of the Discharged Soldiers (Reinstatement in Amendment of Employment) Law, 5709 — 1949 *) — sectl0n L (1) in subsection (a), paragraph (1) shall be replaced by the following paragraph: "(1) regular service under Chapter Three of the Defence Service Law (Consolidated Version), 5719 — 1959 2), in­ cluding regular service as aforesaid extended by virtue of section 26 of the said Law (all such regular service here­ inafter referred to as "regular service");"; (2) the following subsection shall be added after subsection (c): "(d) For the purposes of this Law, service in the Defence Army of Israel under an engagement for permanent service shall be treated as regular service if it occurs immediately after a period of regular service and its period, whether under one engagement or under several consecutive engage­ ments, does not exceed two years.".

2. Section 5 of the principal Law shall be replaced by the fol- Replacement of section 5 and lowing sections: addition of section 5A. "Employment 5. The employment service bureau, in relation.to service bureau. any undertaking, is the employment service bureau in the area of jurisdiction of which the undertaking is situated. Restriction on 5A. (a) Subject to the provisions of section 19, application. Chapter Two shall not apply to a soldier discharged from regular service unless •—

* Passed by the Knesset on the 28th Shevat, 5737 (16th February, 1977) and published in Sefer Ha-Chukkim No. 845 of the'7th Adar, 5737 (25th February, 1977), p. 86; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1277 of 5737, p; 94. i) Sefer Ha-Chukkim of 5719, p. 13 — LSI vol. Ill, p. 10; Sefer Ha-Chukkim of 5711, p. 58 — LSI vol V, p. 49; Sefer Ha-Chukkim of 5714, p. 224 — LSI vol. VIII, p. 197; Sefer Ha-Chukkim of 5729, p. 76 — LSI vol. XXIII, p. 84; Sefer Ha-Chukkim of 5730, p. 121 — LSI vol. XXIV, p. 126; Sefer Ha-Chukkim of 5735, pp. 59 and 158 — LSI vol. XXIX, pp. 71 and 198. .Sefer Ha-Chukkim of 5719, p. 286 — LSI vol. XIII, p. 328 (־

97 (1) on the date of his enlistment he had completed his twentieth year or (2) on the date of his enlistment he had not completed his twentieth year but his reporting for defence service or continua­ tion of service took place after deferment, under section 28 of the Defence Service Law, 5719 — 1959 (Consolidated Version), to a date on which he had completed his twentieth year. (b) For the purposes of section 24 of the Emergency Labour Service Law 5727 — 1967 1). the provisions of subsection (a) shall not apply to an external enlistee.".

Amendment of 3. In section 8 (b) of the principal Law, the expression "appeal committee" shalshalll be replaced by the words "Regional Court referred 8־ sec*Mm to in section •23'

Replacement of 4. Chapter Four of the principal Law shall be replaced by the

Chapter Four. fol]owing chapter:

"CHAPTER FOUR: PRIOR RIGHT TO BE SENT TO WORK

Soldier 19• (a) In this section, "soldier discharged from reeSar8serv^cem regular service" does not include —

(1) a person to whom Chapter Two applies by virtue of the provisions of section 5A; (2) a person who has received severance pay from the owner of an undertaking under the circumstances specified in section 6 (b) of this Law or section 11 (g) of the Severance Pay Law, 5723 — 1963 2). . (b) A soldier discharged from regular service shall for one year from the date of his discharge have a prior right to be sent to work at a workplace in the undertaking at which he was employed for

!) Sefer Ha-Chukkim of 5727, p. 86; LSI vol. XXI, p. 82. .Sefer Ha-Chukkim of 5723, p. 136; LSI vol. XVII, p. 161 (־

98 at least four consecutive weeks immediately before the commencement of his service. The prior right referred to in this subsection shall prevail over a prior right under section 33 and over any provision of the Employment Service Law, 5719 — 1959 *), or of the Rules of the Service enacted under that Law.".

5. Section 39A of the principal Law is hereby repealed. Repeal of section 39A.

6. Section 41 of the principal Law shall be replaced by the fol- Replacement of , . section 41. lowing section:

"Right of 41. The absence of an employee from his work pTrt-Sne service. at an undertaking by reason of part-time service shall not be regarded as a break in the continuity of his employment at the undertaking, and if the owner of an undertaking dismisses an employee because of his doing part-time service, the dismissal shall be void.".

7. In section 43 (b) of the principal Law, the following paragraph Amendment of shall be inserted after paragraph (la): section 43. "(lb) a soldier discharged from regular service who has a prior right to be sent to work under section 19 but has not been sent to work thereunder or has been so sent but not accepted;".

8. In the Severance Pay Law, 5723 — 1963 — Amendment of Severance Pay Law. (1) in section 2 (1), the expression "in section 39A" shall be replaced by the expression "in section 1 (d)"; (2) in section 11, the following subsection shall be added after subsection (b): "(c) Where immediately before his enlistment for regular service within the meaning of section 1 of the Discharged Soldiers (Reinstatement in Employment) Law, 5709— 1949, an employee resigns by reason of his enlistment as aforesaid, the resignation shall for the purposes of this Law be regarded as dismissal.".

i) Sejer Ha-Chukkim of 5719, p. 32; LSI vol. XIII, p. 29.

99 משיד המשפטים מםמך זה הינו העתק שנסרק בשלמותו ביום ובשעה המצוינים . בסריקה ממוחשבת מהימנה מהמסמך המצוי בתיק, בהתאם לנוהל הבדיקות במשרד המשפטים. על החתום « 9ן 4010526.000מ3^22 ~~ ^'"" * משרד המשפטים (התימה מוסדית). Amendment of 9. Section 35 of the Reserve Service (Compensation) Law (Con• Reserve Service 1 (Compensation) solidated Version), 5719 — 1959 ). is hereby repealed. Law.

Saving of 10. This Law shall not derogate from the rights of a person who rights. did or began to do regular service before the coming into force thereof.

YITZCHAK RABIN SHIMON PERES Prime Minister Minister of Defence

EFRAYIM KATZIR President of the State

i) Sefer Ha-Chukkim of 5719, p. 306; LSI vol. XIII, p. 350.

100 (No. 38)

NATIONAL INSURANCE (AMENDMENT No. 25) LAW, 5737 — 1977 *

1. In section 5 of the National Insurance Law (Consolidated Amendment of section S Version), 5728 — 1968 1J, paragraph (2) of the definition of "child" shall be replaced by the following paragraph: "(2) he has not completed his twentieth year, provided that his time is mainly devoted to the completion of his studies at a post-elementary educational institution or, in the case of a female, that she is doing volunteer national service approved by the Minister, on conditions prescribed by regulations with the approval of the Labour Affairs Committee of the Knesset;".

YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 28th Shevat, 5737 (16th February, 1977) and published in Sefer Ha-Chukklm No. 845 of the 7th Adar, 5737 (25th February, 1977), p. 88; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1276 of 5737, p. 92. !) Sefer Ha-Chukkim of 5728, p. 108 — LSI vol. XXII, p. 114; Sefer Ha- Chukkim of 5736, p. 276 — LSI vol. XXX, p. 271.

101 (No. 39)

LEGAL ASSISTANCE TO FOREIGN STATES (CONSOLIDATED VERSION) LAW, 5737 — 1977 *

Definitions. 1. In this Law•

"foreign legal document" means a document of legal significance which precedes the opening of legal proceedings or is designed to prevent legal proceedings or to preserve an existing right and which the laws of the country in which it was made require to be drawn up by or delivered through the holder of a legal office or the delivery of which through the holder of a legal office confers, according to the laws of that country, additional validity upon the delivery or upon the contents of the document or part thereof; "foreign judicial authority" means any court or competent tribunal in a foreign state and any other authority in respect of which a foreign state has given notice that it is a judicial authority for the purposes of legal assistance.

Service of 2. A court may serve documents emanating from a foreign judicial documents. authority and foreign legal documents.

Order to 3. (a) A court may, at the request of a foreign judicial authority, take evidence and other submitted in the form and manner prescribed by regulations, order legal acts. the taking of evidence, the production of documents, the seizure of documents or other articles, the carrying out of a search or the performance of any other legal act, all subject, unless otherwise provided in this Law, to the provisions of any law applying in Israel to the performance of these acts. (b) A court may, at the request of a foreign judicial authority, order that evidence shall be taken or documents produced otherwise

Text determined by the Constitution, Legislation and Juridical Committee of the Knesset on the 26th Shevat, 5737 (14th February, 1977) under section 16 of the Law and Administration Ordinance, 5708—1948, and published in Sefer Ha-Chukkim No. 846 of the 9th Adar, 5737 (27th February, 1977), p. 90. This version replaces the Legal Assistance to Foreign States Law, 5716—1956: Sefer Ha-Chukkim of 5716, p. 91 — LSI vol. X, p. 93; Sefer Ha-Chukkim of 5732, p. 147 — LSI vol. XXVI, p. 166; Sefer Ha- Chukkim of 5735, p. 16 — LSI vol. XXIX, p. 23; Sefer Ha-Chukkim of 5736, p. 240 — LSI vol. XXX, p. 235.

102 than in the manner in which the act would be performed in a case pending before it.

4. Where a court orders the taking of evidence under section Empowerment to tflkc

3 (a), it may, by the same order, prescribe that the evidence be evjdenca taken before it or before the registrar or, subject to such conditions and restrictions as it may see fit, before some other person specified in the order who has agreed to take the evidence. 5. The provisions of Part XIII of the Criminal Code Ordinance, Application of 19361X shall apply to evidence given under this Law. oSSSL0*

6. (a) Where any articles or documents (both hereinafter referred Delivery of to as "articles") which have come into the possession of the court foreign states, under this Law, either by virtue of a search warrant or otherwise, are required by the foreign judicial authority as evidence in any criminal proceeding, the court may order that •they be delivered to the foreign judicial authority or a person designated by it, all on such conditions as the court may see fit to impose with a view to ensuring their safety and preservation. (b) The court may, in place of the document which has come into its possession as aforesaid, deliver to the foreign judicial authority a certified copy or photocopy thereof unless the foreign judicial authority has expressly requested delivery of the original document. (c) The court shall not order as specified in subsection (a) unless it considers that all of the following obtain: (1) everyone claiming any right or interest in the article whose identity and place of residence are known to the court has been given an opportunity to be heard before it; (2) the article is not required in proceedings pending in Israel; (3) it has been ensured to the satisfaction of the court that the article is returned as soon as possible to it or to such person as it may direct. (d) The court may, on the application of the Attorney-General, waive the return of the article unless a person having a right therein opposes the waiver. (e) The court to which the article is returned may order that it be delivered to the person from whom it was taken or be otherwise disposed of as it may direct. i) P.G. of 1936, Suppl. I, p. 285 (English Edition).

103 Powers of 7. The court may refrain from ordering the delivery of any court in case of offences of articles to a foreign judicial authority or the carrying out of a a political search or the seizure of any articles if it considers that the act is character. requested for the purposes of proceedings in respect of an offence of a political character.

Examination 8. Where it is permissible for a witness to be examined by a of witness by representative representative of a party, the court may permit him to be examined of party. even by a person not authorised to conduct legal proceedings before a court on behalf of another person for remuneration if it has been proved to the satisfaction of the court that the person who wishes to examine the witness on behalf of the party is competent to do so in the country from which the request to take evidence emanates.

Transfer 9. (a) Where a foreign judicial authority requests that any detainee abroad of prisoners and or prisoner appear in person in proceedings before it for the detainees. purpose of giving evidence or of confrontation, a court may, on the application of the Attorney-General or his representative and if the detainee or prisoner consents thereto before the court, direct that the detainee or prisoner be temporarily transferred to the country where his appearance is requested, provided that it is ensured to the satisfaction of the court that he is held there in detention or imprisonment under conditions as similar as possible to those to which he was subject while in custody in Israel and that he is returned to Israel not later than the expiration of the period prescribed by the court under subsection (c). (b) The court shall explain to the detainee or prisoner his right not to consent to his, transfer abroad, and it may refrain from directing as specified in subsection (a), inter alia, if the presence of the detainee or prisoner is necessary in any criminal proceedings pending in Israel or if other decisive reasons exist for not transferring the detainee or prisoner to the country in which his appearance is requested. (c) The court shall prescribe the period of the detainee's or prisoner's stay in the country in which his appearance is requested; having regard to the time required for hearing the evidence or effecting the confrontation as requested; but such period shall not exceed six months and shall end earlier than the period for which the detainee or prisoner may be held in custody in Israel. (d) Where a person has been delivered to the authorities of a foreign state under this section, the period of his detention or

104 imprisonment outside Israel shall, to all intents, be deemed to be a period in which he undergoes his imprisonment in Israel, and his being held in detention or imprisonment outside Israel as aforesaid shall be deemed to be being held in custody in Israel.

10. Where a detainee or prisoner in a foreign state is delivered Holding to Israel for the purpose of appearance before an Israeli judicial prisoner from authority, it shall be lawful, during the period of his stay in Israel, abroad in to keep him in imprisonment in such place as the Commissioner custody- of Prisons may direct, if and for such time as a judicial authority in the foreign state requests or consents that he be so held.

11. Powers under this Law shall not be exercised for the extradition Powers not to \yQ substitute of any person in order that he may be brought to trial abroad for extradition for an offence he has committed or undergo a penalty imposed on proceedings. him for such an offence, and they shall not be exercised for bringing a person delivered to Israel as specified in section 10 to trial for an offence committed before his delivery or for arresting him so that he may undergo a penalty imposed on him in Israel for such an offence.

12. An act under this Law shall not be performed if, in the When act opinion of the Attorney-General or his representative, it is likely shallVo^be^ to prejudice the sovereignty or security of the State of Israel or done. any matter of public policy.

13. The Minister of Justice may direct that all or any acts under Prohibition this Law shall not be done if they are requested by a judicial of acts' authority or a national of a state which refrains from performing such acts when requested by Israel courts or nationals or which does not grant Israel courts or nationals the same facilities as are granted by this. Law.

14. Where provisions as to the following matters have been laid Effect of down by agreement between Israel and a foreign state and regulations international have been made for carrying them out, they shall have force of agreements, law notwithstanding the provisions of this Law or of any other Law:

(1) the service, proof, authentication and certification of docu• ments; (2) the taking of evidence, the production of documents and the performance of any other legal act;

105 (3) the extension of free legal aid to nationals and residents of foreign states; (4) exemption from court, fees, stamp duty and other payments in respect of acts performed under this Law or connected with the enforcement of foreign judgments; (5) the exemption of nationals or residents of foreign states from cautio judicatum solvi in actions or appeals or in applications for the enforcement of judgments.

Certificate by 15. A certificate by the Minister of Foreign Affairs that a particular Minister of Foreign Affairs. state has given notice that a particular authority is a judicial authority for the purposes of legal assistance shall be evidence of such notice having been given.

Implementation 16. The Minister of Justice is charged with the implementation of and regulations. this Law and may make regulations as to any matter relating to such implementation, including regulations concerning the determi• nation of competent courts, the form of the application for the service of documents, the mode of submitting such application and the modes of service, and regulations prescribing and exempting from fees.

HAIM J. ZADOK Minister of Justice

106 (No. 40)

COUNCIL FOR HIGHER EDUCATION (AMENDMENT No. 6) LAW, 5737 — 1977 *

1. In section 21H of the Council for Higher Education Law, Amendment of 5718-1958»)- . section 21H. (1) in subsection (a), the words "mikhlala (indigenous Hebrew term for "university")" shall be replaced by the words "beit sefer gavoah (lit. "high school", i.e. school above the level of a secondary school)"; (2) subsection (b) shall be replaced by the following subsection: "(b) No educational institution shall use a designation which might be taken to refer to a permit or recognition under this Law unless it has received such a permit or such recognition, as the case may be.".

2. Notwithstanding the provision of section 1 (1), an institution Transitional may continue to use the designation mentioned therein until the pr0VIS10n• expiration of twenty-four months from the date of publication of this Law or until the final decision on its application for permission to bear that designation, whichever is the later, provided that it files the application within ninety days from the date of publication of this Law.

YITZCHAK RABIN AHARON YADLIN Prime Minister Minister of Education and Culture

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 5th Adar, 5737 (23rd February, 1977) and published in Sefer Ha-Chukkim No. 847 of the 13th Adar, 5737 (3rd March, 1977) p. 94; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1252 of 5736, p. 342. *) Sefer Ha-Chukkim of 5718, p. '191 — LSI vol. XII, p. 217; Sefer Ha- Chukkim of 5721, p. 31 — LSI vol. XV, p. 31; Sefer Ha-Chukkim of 5723, p. 65 — LSI vol. XVII, p. 78; Sefer Ha-Chukkim of 5732, p. 32 — LSI vol. XXVI, p. 33; Sefer Ha-Chukkim of 5735, p. 243 — LSI vol. XXIX, p. 319; Sefer Ha-Chukkim of 5736, p. 6 — LSI vol. XXX, p. 5.

107 (No. 41)

KNESSET BUILDING AND PRECINCTS (AMENDMENT) LAW, 5737— 1977 *

Addition of l. In the Knesset Building and Precincts Law, 5728 —1968»), section 29A the following section shall be inserted after section 29:

"Central 29A. The Chairman of the Knesset may, on such Election Committee. conditions as he shall prescribe, authorise the Central Knesset Election Committee to conduct all or part of its activities in the Knesset Building and in the precincts thereof.".

YITZCHAK RABIN Prime Minister

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 5th Adar, 5737 (23rd February, 1977) and published in Sefer Ha-Chukkim No. 847 of the 13th Adar, 5737 (3rd March, 1977), p. 94; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1288 of 5737; p: 156. i) Sefer Ha-Chukkim of 5728, p. 197; LSI vol. XXII, p. 226.

108 (No. 42)

LOCAL AUTHORITIES (ELECTIONS) (TEMPORARY PROVISIONS) LAW, 5737 — 1977 *

1. The elections to the councils of the local authorities which Postponement of ©lections were to have taken place on the 20th Cheshvan, 5738 (1st November, 1977) are hereby postponed and shall take place not earlier than the 2nd Iyar, 5738 (9th May, 1978) and not later than the 7th Cheshvan, 5739 (7th November, 1978), at a date to be prescribed by resolution of the Knesset upon the proposal of the Home Affairs and Ecology Committee of the Knesset.

2. If the Knesset does not by the 1st Shevat, 5738 (9th January, Elections if no 1978) prescribe a date for the elections referred to in section 1, date Prescribed- they shall take place on the 7th Cheshvan, 5739 (7th November, 1978).

3. The elections to the councils of the local authorities next Date of next following the elections under this Law shall be held on the third elections8 Tuesday in the month of Cheshvan next following the completion of four years from the date of the elections under this Law.

YITZCHAK RABIN SHLOMO HILLEL Prime Minister Minister of the Interior

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 3rd Adar, 5737 (21st February, 1977) and published in Sefer Ha-Chukkim No. 848 of the 13th Adar, 5737 (3rd March, 1977), p. 96; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1280 of 5737, p. 110. (No. 43)

EMERGENCY REGULATIONS (CONTROL OF VESSELS) (AMENDMENT No. 3) LAW, 5737— 1977*

Amendment of 1. In regulation 2 of the Emergency Regulations (Control of regulation 2. Vessels), 5708 —1948 *) (hereinafter referred to as "the Regula­ tions") —

(1) in the opening passage, the words "or hired by an Israel national or Israel resident" shall be replaced by the words "including a vessel exempt from registration in the Israel register under the said Law and not registered in a foreign register"; (2) the following paragraph shall be inserted after paragraph (2): "(2A) requiring that transportation of the type prescribed in the directions be effected in the vessel in areas and on conditions prescribed therein;"; (3) the words "or as provided in regulation 5A or 5B" shall be added at the end of paragraph (7)"; (4) the words "or manned, generally or according to specified duties, by persons who are Israel nationals or Israel residents or whom the Minister has found fit therefor, as shall be prescribed in the directions" shall be added at the end of paragraph (12).

Addition of 2. The following regulations shall be inserted after regulation 5 sections 5A to 5D. of the Regulations:

"Prescribing 5A. Any charter or carriage fee which may be ï and׳charter fe advance prescribed under regulation 2 may be prescribed payments. before, in the course of or after termination of the charter, sailing or transport, and the Minister may prescribe a duty to make advance payments on account thereof and the mode and times of making the same.

* Passed by the Knesset on the 11th Adar, 5737 (1st March, 1977) and published in Sefer Ha-Chukkim No. 849 of the 21st Adar, 5737 (11th March, 1977), p. 98; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1235 of 5736, p. 218. i) Sefer Ha-Chukkim of 5733, pp. 203 and 358 — LSI vol. XXVII, pp. 223 and 436; Sefer Ha-Chukkim of 5735, p. 40 — LSI vol. XXIX, p. 48.

110 Prescribing 5B. Where a direction issued under regulation 2 conditions of charter or (2A), (5) or (7) does not prescribe the conditions of transport. the charter or transport and the parties do not reach agreement as to all or some of them by the date of termination of the charter or transport under the direction or by an earlier date prescribed therein, the Minister shall prescribe them on the application of one of the parties.

Issue of 5C. The Minister may, if he deems it necessary directions to charterer of for reasons of State security or for the maintenance foreign vessel. of essential supplies and services, issue directions to an Israel national or Israel resident who has chartered a vessel registered in a foreign state concerning the mode of exercising his rights under the charter in order to perform any of the acts specified in regulation 2.

Exemption from 5D. (a) The Minister may, if he deems it necessary compliance with certain for reasons of State security or for the maintenance enactments. of essential supplies and services, grant general or special exemption, with or without restrictions, from compliance with any such provision of an enactment with the implementation of which he is charged as relates to a vessel which is in Israel or to a vessel to which the provisions of regulations 2, 7(c) or 7A apply, wherever it may be,, provided he is satisfied that the grant of exemption is not clearly and manifestly calculated to endanger human life. (b) This regulation shall apply during a period upon which the Minister of Defence and the Minister of Transport shall jointly decide if they deem it necessary so to do for reasons of State security or for the maintenance of essential supplies and services and which shall not exceed six months on any one occasion. The decision shall not require publication in R&shumot and may be general or restricted either to particular enactments or accord• ing to other criteria or by conditions prescribed in it. (c) Notwithstanding regulation 22 or any other

111 law, the powers of the Ministers under subregulation (b) shall not be delegable.".

Amendment of 3. In regulation 8(a) of the Regulations, the words "or for the regulation 8. maintenance of essential supplies and services" shall be inserted after the words "for reasons of State security".

Amendment of 4. In regulation 18 of the Regulations, the words "and as to regulation 18. the introduction of a code for issuing directions under these Regulations, the modes of bringing it to the knowledge of the addressees and the precautions to be taken in safekeeping and using it" shall be added at the end. Amendment of 5. In regulation 25 of the Regulations — regulation 25. (1) subregulation (a) shall be replaced by the following sub- regulation: "(a) Where the Minister has required any person, by direction under regulation 2 (7), to charter out a vessel and has prescribed the charter fee or charter conditions by virtue of the said regulation or regulation 5B or has prescribed an advance payment or the date thereof by virtue of regulation 5A, any person who considers himself aggrieved thereby may lodge objection with the Shipping Tribunal established under section 10 of the Compensation (Defence) Ordinance, 19401). and the said Tribunal may confirm or vary the fee, advance payment, conditions or date."; (2) the following subregulation shall be added at the end: "(d) The Minister of Justice may prescribe special rules of procedure for the hearing of objections under this regulation.".

Terminological 6. The word "letting" appearing in the Regulations shall be replaced amendment. by the words "chartering out" and the textual adjustments thus rendered necessary shall be made.

YIGAL ALON GAD YAACOBI Deputy Prime'Minister Minister of Transport and Minister of Foreign Affairs Acting Prime Minister EFRAYIM KATZIR President of the State

!) P.G. of 1940, Suppl. I, p. 177 (English Edition).

112 (No. 44)

STATE SERVICE (BENEFITS) (AMENDMENT No. 17) LAW, 5737 — 1977 *

1. In section 21 of the State Service (Benefits) Law (Consolidated Amendment of Version), 5730- 1970»)- sect.cn 21, (1) in subsection (a), the words "The provisions of this sub• section shall not apply to the pension of a person who has opted for a pension under section 34 (c), other than a person to whom section 78 applies" shall be added at the end; (2) in subsection (b), the words "other than a pension under Chapter Six "B" of the National Insurance Law" shall be added at the end of paragraph (3).

2. This Law shall, in respect of the time after its coming into Transitional force, apply also to a person who retired from the Service before pr0Vlsl0n• then and to his survivors.

YIGAL ALON YEHOSHUA RABIOVITZ Deputy Prime Minister and Minister of Finance Minister of Foreign Affairs Acting Prime Minister

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 11th Adar, 5737 (1st March, 1977) and published in Sefer Ha-Chukkim No. 849 of the 21st Adar, 5737 (11th March, 1977), p. 100; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1279 of 5737, p. 108. !) Sefer Ha-Chukkim of 5730, p. 65 — LSI vol. XXIV, p. 57; Sefer Ha- Chukkim of 5736, p. 273 — LSI vol. XXX, p. 267; Sefer Ha-Chukkim of 5737, p. 82 — supra, p. 95.

113 (No. 45)

STATE COMPTROLLER (TEMPORARY PROVISION) LAW, 5737 — 1977 *

Temporary 1. Notwithstanding the provisions of section 46 (a) of the State provision. Comptroller Law (Consolidated Version), 5718 —1958x), the report on the activities of the Commissioner for Complaints from the Public in the year 5737 shall be submitted on the 4th Kislev, 5738 (14th November, 1977).

YIGAL ALON Deputy Prime Minister and Minister of Foreign Affairs Acting Prime Minister

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 12th Adar, 5737 (2nd March, 1977) and published in Sefer Ha-Chukkim No. 849 of the 21st Adar, 5737 (11th March, 1977), p. 100; the Bill and an Explanatory Note were published in Hatzdot Chok No. 1286 of 5737, p. 149. i) Sefer Ha-Chukkim of 5718, p. 92 — LSI vol. XII, p. 107; Sefer Ha- Chukkim of 5731, p. 112 — LSI vol. XXV, p. 111.

114 (No. 46)

WAGE PROTECTION (AMENDMENT No. 12) LAW, 5737 — 1977 *

1. (a) In section 7 of the Wage Protection Law, 5718 —1958J) Amendment of s ecti on 7 (hereinafter referred to as "the principal Law"), the words "under section 6" shall be deleted. (b) A direction given by an employee to his employer before the coming into force of subsection (a) concerning the payment of his wage in the event of his death shall be deemed to have been given under section 7 of the principal Law as amended by this Law.

2. (a) In section 8 of the principal Law— Amendment of (1) in subsection (a), after the expression "income tax", sectl0n there shall be inserted the words "a deduction under section 161(c) of the National Insurance Law (Consolidated Version), 5728 — 1968 2),and a deduction under section 19(d) of the Reserve Service (Compensation) Law (Consolidated Version), 5719 — 1959 3)"; (2) subsection (al) shall be replaced by the following sub• section: "(al) Where the wage is payable on a daily basis, the amounts which cannot be attached, transferred or charged shall, after the deductions referred to in sub• section (a), be the twenty-fifth part of the amounts stated in that subsection."; (3) in subsection (c), the words "or daily" shall be inserted after the word "monthly"; (4) subsections (d) and (e) shall respectively be re-marked as subsections (f) and (g) and the following subsections shall be inserted after subsection (c): "(d) The amounts stated in subsection (a) shall be

* Passed by the Knesset on the 11th Adar, 5737 (1st March, '1977) and published in Sefer Ha-Chukkim No. 850 of the 21st Adar, 5737 (11th March, 1977), p. 102; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1264 of 5737, p. 22. 1) Sefer Ha-Chukkim of 5718, p. 86; LSI vol. XII, p. 100; Sefer Ha-Chukkim of 5736, p. 100 — LSI vol. XXX, p. 105. 2) Sefer Ha-Chukkim of 5728, p. 108; LSI vol. XXII, p. 114. a) Sefer Ha-Chukkim of 5719, p. 306 — LSI vol. XIII, p. 23.

115 varied in accordance with the rate of fluctuation of the average wage, within the meaning of the National Insurance Law (Consolidated Version), 5728 — 1968. The Minister of Labour shall publish in Reshumot notice of a variation of the said amounts, rounding off the amounts arrived at under this subsection to 10 pounds and those arrived at under subsection (al) to one pound. The variation shall not apply to any attachment, transfer or charge effected before the pub• lication of notice thereof. (e) A pension payable by an employer or a benefit fund shall for the purposes of this section be regarded as a wage. This provision shall not derogate from pro• tection against any attachment, transfer or charge ac• corded to a pension as aforesaid under any enactment.", (b) Section 8(d) of the principal Law, as enacted by this Law, shall come into force on the 13th Nisan, 5737 (1st April, 1977). This rate of fluctuation of the average wage for that date shall be calculated, in respect of the amount of 1,800 pounds mentioned in section 8(a) of the principal Law, with reference to the average wage for the 1st Nisan, 5736 (1st April, 1976), and in respect of the other amounts mentioned therein, with reference to the average wage for the 20th Nisan, 5735 (1st April, 1975).

Addition of 3. The following section shall be inserted after section 15 of the section 16. principal Law:

"Pension to 16. The Minister of Labour may, with the approval be treated as wage. of the Labour Affairs Committee of the Knesset, on the conditions and with the variations prescribed by regulations, apply all or any of the provisions of this Law relating to delayed wage to a pension payable by an employer or a benefit fund: Provided that the rates of compensation for delay of pension shall not exceed the rates specified in section 17. Regulations under this section may be general or in respect of particular classes of persons entitled, employers, benefit funds or pensions.".

Amendment of 4. In the marginal note to section 19 of the principal Law, the section 19. words "and payment orders" shall be deleted.

116 5. The following section shall be inserted after section 19C of Addition of , . . , section 20. thx e principal T Law:

"Severance 20. (a) In this section, "The date for the payment compensation. of severance pay", in relation to an employee or a person entitled to severance pay under an employee, means whichever of the following is the latest: (1) the date of discontinuance of the em• ployee-employer relationship; (2) the date prescribed for the payment of severance pay under the provisions of a collective agreement, some other collective arrangement or an extension order apply• ing to the employee; (3) where, under a contract of employment or some other agreement, a right to sever• ance pay has been stipulated more advan• tageous than that prescribed by any enact• ment, collective agreement, other collective arrangement or extension order, the date fixed for the payment of severance pay under that contract of employment or agreement or, if no date has been so fixed and the said right was stipulated after the date of discontinuance of the employee- employer relationship, the date on which such right was stipulated; (4) where, under a collective agreement, some other collective arrangement or an extension order, a right of severance pay was stipulated after the date of discon• tinuance of the employee-employer rela• tionship and no date was fixed for the payment thereof, the date on which such right was stipulated; (5) where, under a provision of any enact• ment, the right to severance pay is con• tingent on the fulfilment of a condition by the employee after the date of discon• tinuance of the employee-employer rela• tionship or on the fulfilment of a condition during a certain period after that date,

117 the date of fulfilment of the said condition or the date of expiration of the said period, as the case may be. (b) Severance pay not paid by an employer within sixty days from the date for the payment thereof shall have added to it in respect of each month, starting from that date, delay compensation at the rate of five per cent of the unpaid amount of severance pay, with the deduction of any debt owed to the employer by the employee or of any amount which the employer is required or entitled to deduct from the severance pay. Delay compen• sation as aforesaid shall in all respects, except for the purposes of this subsection, be part of the severance pay. (c) Where a person is entitled to severance pay otherwise than by virtue of section 1(a) or 5 of the Severance Pay Law, 5723 — 1963 1). the date for the payment of severance pay under subsection (a) shall not apply until a written demand for its payment, stating the ground therefor, has been delivered to the employer. Where the demand is delivered to the employer after the said date, the date for the payment of severance pay shall be the date on which the demand is delivered. (d) The provisions of sections 17A, 18 and 19 shall apply mutatis mutandis to the payment of severance pay delay compensation as if it were wage delay compensation: Provided that a Regional Court may also reduce or cancel severance pay delay compensation under section 18 where severance pay was not paid for any of the following reasons: (1) a difference of opinion, which in the opinion of the court has some substance, as to the existence of a right to severance pay; (2) a difference of opinion as to the date of discontinuance of the employee-employer relationship;

Sefer Ha-Chukkim of 5723, p. 136; LSI vol. XVJJ, p. 161. (3) the person entitled to receive severance pay had not delivered to the employer, at his request, particulars concerning him• self (including, where the person entitled is not the employee, particulars concerning the employee) and required for determining the right to or amount of severance pay. (e) A person entitled to receive severance pay wholly or in part from a 1benefit fund by virtue of payments made to it by the employer shall not be entitled to delay compensation in respect of an amount due to him as aforesaid if within sixty days from the date for the payment of the severance pay the employer informs the benefit fund in writing that he agrees to the payment thereof. The foregoing provision shall not derogate from the provisions of sections 14 and 20 of the Severance Pay Law, 5723 — 1963. (f) Where an employee or former employee dies and the employer deposits an amount of sever• ance pay with a Regional Court for transmission to the person entitled, then, for the purposes of subsection (b), such amount shall be deemed to have been paid to the person entitled on the date of the deposit.".

YIGAL ALON MOSHE BARAM Deputy Prime Minister and Minister of Labour Minister for Foreign Affairs Acting Prime Minister

EFRAYIM KATZIR President of the State (No. 47) I

STATE SERVICE (BENEFITS) (AMENDMENT No. 18) LAW, 5737— 1977 *

Amendment of 1. (a) In section 1 of the State Service (Benefits) (Consolidated sectI0n L Version) Law, 5730— 1970») (hereinafter referred to as "the principal Law"), after the words "a person ,who has attained the age of eighteen years" in the definition of. "self-supporting person", there shall be inserted the words "or, in the case of a child or grandchild, including a stepchild or adopted child, of a deceased person, a person who has attained the age of twenty years or, if he is in regular service under the Defence Service Law (Consolidated Version), 5719 — 1959 2), the age of twenty-one years, all". (b) This section shall have effect from the 1st Nisan, 5736 (1st April, 1976), and it shall, from that day, apply also to a person who before then had reached the age of eighteen years but not the age of twenty or twenty-one years, as the case may be.

Amendment of 2. (a) Section 4 of the principal Law shall be re-marked as section 4. section 4 (a) and — (1) paragraph (3) thereof shall be replaced by the following paragraph: "(3) his or her non-self-supporting child, stepchild or adopted child and a nori-self-supporting grandchild who was wholly dependent ion him or her (hereinafter: "orphan");"; (2) the words "he shall be' treated in like manner as a dependent referred to in paragraph (5)" shall be added at the end of paragraph (4).

* Passed by the Knesset on the 11th Adar, 5737 (1st March, 1977) and published in Sefer Ha-Chukkim No. 851 of the 11th March, 1977, p. 106; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1261, of 5737, p. 4. • J) Sefer Ha-Chukkim of 5730, pp. 65 arid 120 — LSI vol. XXIV, pp. 57 and 125; Sefer Ha-Chukkim of 5731, ip. 107 — LSI vol. XXV, p. 105; Sefer Ha-Chukkim of 5733, pp. 78, 80, 82, 200 and 255 — LSI vol. XXVII, pp. 73, 77, 78, 218 and 294; Sefer Ha-Chukkim of 5735, pp. 128 and 238 — LSI vol. XXIX, pp. 158 and 318; Sefer Ha-Chukkim of 5736, pp. 10, 18, 97, 163 and 273 — LSI vol XXX, pp. 6, 7, 15, 102, 164 and 267; Sefer Ha-Chukkim of 5737, pp. 82 and 100 — supra, pp. 95 and 113. 2) Sefer Ha-Chukkim of 5719, p. 286 — LSI vol. XIII, p. 328.

I (b) The following subsection shall be added at the end of section 4: "(b) A widow or widower is hereinafter referred to as a spouse.". (c) Subsection (a) (2) shall have effect from the 5th Av, 5733 (3rd August, 1973).

3. In section 15(1) of the principal Law, the expression "section Amendment of 15־ or 18" shall be replaced by the expression "section 17, 17A or 18". sectl0n 17

4. (a) The following section shall be inserted after section 17 of Addition of • • , T section 17A. the principal Law:

"Early 17A. (a) An employee whose service has terminated on^pension a^ter ne served for ten years and who is not entitled to a retirement pension under other provisions of this Law may notify the Service Commissioner in writing, not later than six months from the date of termination of his service, that he opts for rights to benefits under this Law in consequence of such termination, and upon his doing so section 46, (c) shall apply to him: Provided that where the employee has been disqualified for service by a decision of the Court of Discipline or where the Court, without disquali­ fying him for service, has decided that the whole or part of a retirement pension shall not be paid to him, the application of that section shall lapse or be restricted, as the case may be. (b) This section shall not apply to a person who has received compensation in consequence of the termination of his service or a person whose rights to benefits in consequence of his service are saved under section 86 or 92 or under any other Law.". (b) This section shall have effect from the 1st Nisan, 5736 (1st April, 1976). Where an employee's service terminated after the date from which this section has effect and before the date of publication of this Law in Reshumot, he or his survivors may notify the Service Commissioner of an option under section 17A of the principal Law within six months from the said date of publication.

121 Amendment of 5. In section 18 (a) of the principal Law, the words "if the section 18. employee has attained the age of 65 years" shall be replaced by the words "upon the expiration of the month in which the employee attained the age of 65 years".

Amendment of 6. In section 26 of the principal Law —

section 26. ^ in paragraph tne worcjs «tne widow, so long as she has not remarried" shall be replaced by the words "the spouse, so long as she or he has not remarried"; (2) in paragraphs (2) and (3), the words "a widow entitled to a pension" shall wherever occurring be replaced by the words "a spouse entitled to a pension"; (3) in paragraph (4), the word "widow" shall be replaced by the word "spouse".

Amendment of 7. In section 28 (a) of the principal Law —

section 28. ^ .Q paragrapn tie words "a widow who had been his wife for not less than three years last preceding his death or who has borne him a child, so long as she has not remarried" shall be replaced by the words "a spouse if she or he had been the deceased's spouse for not less than three years last preceding the deceased's death or if a child had been born to them, so long as she or he has not remarried"; (2) in paragraphs (2) and (3), the words "a widow entitled" shall be replaced by the words "a spouse entitled"; (3) in paragraph (4), the word "widow" shall be replaced by the word "spouse". (b) In section 28 (b) of the principal Law, the expression "46(b)" shall be replaced by the expression "46 (b) or (d)". (c) The following subsection shall be added at the end of section 28: "(d) The provisions of this section shall also apply to the survivors of a person who opted for rights to a pension under section 17A and died before he became entitled thereto as provided in section 46 (c); for this purpose, a reference to the pension which would be due to a person entitled but for his death shall be deemed to be a reference to the pension which would be due to him but for his ,death if at the time he died he had already been entitled thereto.".

Amendment of 8. In section 30 of the principal Law — section 30. (1) in subsection (a), the words "more than one widow or

122 orphans by several wives" shall be replaced by the words "more than one spouse or orphans by more than one spouse"; (2) in subsection (b), the words "or the difference referred to in section 29 (g)" shall be deleted.

9. Section 31 of the principal Law shall be replaced by the Replacement of .section 31 : •.״followine ii • g section

"Gratuity to 31. (a) Where a spouse entitled to a pension re­ spouse who remarries. marries, she or he shall be paid a gratuity of an amount equal to the amount of the pension to which she or he would be entitled but for the remarriage, as specified in subsection (c), multiplied by thirty-six. In the case of a spouse who by reason of the provisions of section 30 or 36 is paid a pension at a reduced rate or is paid no pension, the pension to which she or he would be entitled but for those provisions shall be regarded as the pension for the present purpose. (b) A gratuity which has been paid to a spouse under section 37 shall be deducted from the gratuity payable under subsection (a). (c) One half of the gratuity under this section shall be paid to a spouse upon the filing of her or his application therefor but not before the remarriage, and it shall be calculated on the basis of the amount of the pension to which she or he was last entitled before the remarriage, and the other half shall be paid to her or him upon the expiration of two years after the remarriage, and it shall be calculated on the basis of the amount of the pension which would be payable to her or him at that time but for the remarriage. (d) Where the second marriage is dissolved within five years from the date of its conclusion by the death of the new partner or is dissolved at any time as a result of proceedings commenced within five years as aforesaid, the spouse shall, from the date of dissolution, be paid the same pension as would be payable to her or him at the time but for the remarriage. Provided that if she or he has already been

123 paid a gratuity or half a gratuity under this section, the rate of the pension shall be reduced until the amount of the reduction is equal to the amount of the gratuity received; but the rate of the pension shall not in any one month be reduced by more than half. (e) Where the spouse's right to the pension terminates before the aggregate reduction under subsection (d) is equal to the amount of the gratuity received, the balance shall be a debt of the spouse or of her or his estate to the Treasury.".

Amendment of 10. In section 32 (g) of the principal Law —

section 32. ^ m paragraph ^ tne worc!s "a widow entitled" shall be replaced by the words "a spouse entitled" and the words "her husband's" shall be replaced by the words "her or his spouse's"; (2) in paragraph (2), the. words "of a widow" shall be replaced by the words "of a spouse".

Amendment of 11. In section 34 of the principal Law, in subsections (b) and (c),

js «a benefit under this chapter" shall be replaced by the״section 34. ^ wo words "a pension under this chapter".

Amendment of 12. In section 35 (a) of the principal Law — (1) in the opening passage, the words "a widow entitled" shall be replaced by the words "a spouse entitled"; (2) paragraph (2) shall be re-marked as paragraph (3), and the following paragraph shall be inserted before it: "(2) notwithstanding the provisions of paragraph (1) — (a) where the person entitled to a retirement pension has attained the age of sixty-five years, or where immediately before his retirement from the Service he was employed in the Intelligence and Security Services and the Service Commissioner •has published a notice in his respect by virtue of his power under section 100 (a) , his pension shall not be less than two thirds of the pension to which he would be entitled but for the provisions of paragraph (1); (b) so long as the person entitled to a retirement pension has not attained the age of sixty-five years, his pension shall not be less than one third of the

124 pension to which he would be entitled but for the provisions of paragraph (1), unless he is paid a salary out of the Treasury in respect of any service even one to which this Law does not apply, and a waiting-period beginning with the date of his retirement on pension has not yet elapsed, such waiting-period being two years if he retired on pension before attaining the age of sixty years, and one year in every other case;".

13. In section 36 of the principal Law— Amendment of (1) in the marginal note, the word "widow" shall be replaced sectIon 36- by the word "spouse"; (2) subsection (a) shall be replaced by the following subsection: "(a) Notwithstanding the provisions of the preceding sections, a self-supporting spouse shall only be paid a survivor's pension from the time she or he attains the age of forty-five years, except where there is a child who — (1) is not self-supporting and (2) is the child of both the deceased and the spouse or, being the child of only one of them, is fully main• tained by the spouse or is maintained by her or him to the extent determined by the Minister of Finance with the approval of the Labour Affairs Committee of the Knesset."; (3) subsection (b) shall be re-marked as subsection (c) and the following subsection shall be inserted before it: "(b) Where a child of the deceased and the spouse, the deceased having been the father, is born after the deceased's death, such child shall, for the purposes of the rights of the spouse under this section, be deemed to have been alive at the time of such death.".

14. Section 37 of the principal Law shall be replaced by the following Replacement of section 37. section:

"Gratuity to 37. A spouse who by reason of section 36, or of receipt of" in section 28 (a) 0) as far as [t concerns the duration pension. of the marriage, does not receive a survivor's pen• sion shall be paid a gratuity equal to the pension to which she or he would have been entitled but for those sections, multiplied by twelve:

125 Provided that where a spouse to whom section 36 applies had, at the death of the deceased, attained the age of forty-three years, the gratuity shall be equal to the product of half the amount of the said pension and the number of the months by which her or his age is less than forty-five years.".

15. In section 39 (e) of the principal Law, the expression "17A" Amendment of shall be inserted after the expression "15 (4)" and the expression "46 (b)" shall be replaced by the expression "46".

16. (a) Section 41 of the principal Law is hereby repealed. Repeal of section 41. (b) The amendments enacted by sections 2 (b), 6 to 10, 12 (1), 13 (1) and (2), 14, 16, 19, 26 (a) (2) and 26 (a) (3) of this Law shall, in respect of the period after the date from which they have effect, apply also to the spouse of a woman who died before that date unless in consequence of the death and by right of the . deceased's service he or other relatives of the deceased have received advantages from the Treasury otherwise than by way of periodical payments, except advantages under the Soldiers' Families Law.

17. (a) In section 46 of the principal Law, the following subsection Amendment of shall be added at the end: section "(c) An employee who has opted for rights to benefits under section 17A shall, notwithstanding the provisions of subsection (a), be paid a retirement pension from the month beginning after the day on which he attains the age of sixty-five years; however — (1) if, before attaining the age of sixty-five years he retires for reasons of ill-health from every employment or occupation and begins to receive a pension in consequence of such retirement by virtue of any enactment, collective agreement or contract of employ• ment, he shall be paid a retirement pension under this Law from the month in which he begins to receive a pension in consequence of the said retirement and so long as the said pension is payable to him; (2) if he retires from every employment or occupation before attaining the age of sixty-five years without being entitled to a pension as referred to in para• graph (1), he shall be paid a retirement pension under

126 this Law from the month beginning after the day on which he retires from every employment or occupation but not before the end of the month in which he attains the age of sixty years; (3) if he is not entitled to a retirement pension under paragraph (1) or (2) but the Medical Board finds that he is not capable of earning a living outside the Service, he shall be paid a retirement pension also in the period in which he is not entitled to it under the said para­ graphs, from the month beginning after the day on which his incapacity began and so long as the said incapacity continues or so long as he is regarded as unemployed within the meaning of section 127F of the National Insurance Law.", (b) This section shall have effect from the 1st Nisan, 5736 (1st April, 1976).

18. In section 47 of the principal Law, the words "after the first Amendment of 47־ of" shall- be replaced by the word "in". section

19. In section 52 (b) (1) of the principal Law, the closing passage Amendment of shall be replaced by the words "For that purpose, a spouse shall sectl0n 52- be regarded as entitled to a pension even if she or he is not entitled to a survivor's pension".

20. (a) In section 60 (c) (2) of the principal Law, the words "or Amendment of 60־ under the Road Accident Victims (Compensation) Law, 5735 — sectl0n 1975»)" shall be inserted after the words "under the Civil Wrongs Ordinance". (b) This section shall have effect from the 1st Tishri, 5737 (25th September, 1976).

21. In section 63 of the principal Law, the figure "41" shall be Amendment of deleted. section 61

22. In the heading of Chapter Four of the principal Law, the Amendment of words "and School Teachers" shall be added after the expression QJJJS Four. "Kindergarten Teachers".

23. Section 66 of the principal Law shall be re-marked as section Amendment of 66־ a) and the following subsection shall be added thereafter: section) 66

') Sefer Ha-Chukkim of 5735, p. 234; LSI vol. XIX, p. 311.

127 "(b) Notwithstanding the provisions of section 18, the Service Commissioner may postpone the retirement on pension of a teaching worker under that section until the-31st of August immediately following the day on which the teaching worker actually reaches the age of sixty-five years.".

Addition of 24. The following section shall be inserted after section 72A of section 72B. the principal Law:

"Early 72B. The option of aj police officer under section retirement. 17A shall be conditional upon the consent of the Inspector-General of Police to the termination of his service.".

Amendment of 25. (a) The following subsections shall be added at the end of section 77. section 22 set out in section 77 of the principal Law: "(d) The survivors of a police :officer who died after serving twenty-five years, including npt less than fifteen years in the Police, and who at the time of his death had reached the age of fifty years, may opt for one of the following: (1) the pension under section 26; (2) the pension under section 28 which would be payable to them if the deceased had retired on pension on the date of his death, with the addition of the gratuity under subsection (c) of this section which would have been payable to the deceased if he had retired on pension on the date of his death. . (e) The survivors of a police officer referred to in sub• section (d) who by reason of his death are entitled to a pension under the Soldiers' Families Law may opt for one of the following: (1) the pension under section 78 (c); (2) the pension under section 78 (i) which would be payable to them if the deceased had retired on pension on the date of his death and had opted for a pension under 78 (b) (1), with the addition of the gratuity under subsection (c) of this section which would have been payable to the deceased if he had retired on pension on the date of his death. (f) Where the deceased left more than one spouse or the spouse and the orphans, or the dependants, do not

128 live in the same household or the survivors disagree as to the option, the option under subsection (d) or (e) shall be exercised by the officer-in-charge, and if also a gratuity is due in consequence of the option it shall be distributed among the survivors by the same officer-in-charge, all with reference to the circumstances of the survivors and to any agreement between them. (g) Where a police officer referred to in subsection (d) left no survivors, his heirs shall be entitled to the gratuity under subsection (c) which would have been payable to the deceased if he had retired on pension on the date of his death.", (b) This section shall have effect from the 30th Kislev, 5736 (4th December, 1975).

26. (a) In section 78 of the principal Law— Amendment of (1) the following subsection shall be inserted after sub• section (b): "(bl) Notwithstanding the provisions of subsection (b), a person entitled to a pension who before the 21st Adar Bet, 5725 (25th March, 1975) opted for a pension under section 17 (b) of the State Service (Benefits) Law, 5716 — 1955*), shall be paid a pension under section 20 (b) and 25 per cent of the pension due to him under the Invalids Law if this calculation is more favourable to him."; (2) in subsection (c) — (a) in paragraph (1), the words "a widow, so long as she has not remarried" shall be replaced by the words "a spouse, so long as she or he has not remarried"; (b) in paragraph (2), the words "the widow" shall be replaced by the words "the spouse" and the words "or he" shall be inserted after the words "she"; (c) in paragraph (4), the words "if a police officer's widow entitled to a pension... remarries" shall be replaced by the words "if a police officer's spouse entitled to a pension... remarries"; (3) in subsection (e), the words "by subsection (c)" shall be replaced by the words "by subsections (c) to (e)" and the words "more than one widow, or orphans by several wives" in paragraph (3) shall be replaced by the words i) Sefer Ha-Chukkim of 5715, p. 135; LSI vol. IX, p. 149.

129 "more than one spouse, or orphans by more than one spouse"; (4) subsection (i) shall be re-marked as subsection (j) and the following subsection shall be inserted before it: "(i) Where a person entitled to a pension under sub• section (b) has died and his survivors are by reason of his death entitled to a pension under the Fallen Soldiers' Families Law and have opted for such pension, the following provisions shall apply: (1) they shall, notwithstanding the provisions of section 34, be paid part of the pension under section 28 to which they would be entitled but for their option, being one half if the deceased opted for rights under subsection (b) (2) or one quarter if he opted for rights under subsection (b) (1) or if subsection (bl) applied to him; (2) where the aggregate amount of pension due to the survivors under section 28, together with the pension due to them under the Soldiers' Families Law, exceeds ninety per cent of the determining salary of the deceased, the excess amount shall be deducted from their pension under section 28; (3) subsection (e) shall apply to the survivors; however, every reference in that subsection to the rates prescribed in subsection (c) shall for this purpose be replaced by a reference to the rates prescribed in this subsection.". (b) This section shall in respect of the time after the publication of this Law in Reshumot apply also to the survivors of a person who died before then.

Amendment of 27. In section 78A of the principal Law, the figures "(3)" and section 78A. "(4)" shall wherever occurring be respectively replaced by the figures "4" and "5".

Amendment of 28. In section 78B of the principal Law, the expression "(c)" shall taction 78B. be replaced by the expression "(d)".

Amendment of 29. (a) In section 79A of the principal Law — section 79A. (1) subsection (a) shall be replaced by the following sub• section:

130 "(a) Where a person retires from the Service as a police officer, a period of compulsory service which preceded his service within the meaning of this Law shall be included in calculating the period of the latter service if he served in the Police for not less than ten years and one of the following applies to him: (1) the period between the termination of his compulsory service and the commencement of his service as a police officer (hereafter in this section referred to as "the interim period") did not exceed one year; (2) he served in permanent service in the interim period, and the period of his compulsory service would have been counted as a period of permanent service for the purposes of the Defence Army of Israel (Permanent Service) (Benefits) Law, 5714 — 1954*), if he had continued to serve in permanent service until he became entitled to a pension under the said Law, and not more than one year elapsed between the termination of his permanent service and the commencement of his service as a police officer."; (2) in subsection (b), the words "and "permanent service" means service in the Defence Army of Israel under an engagement for permanent service" shall be added at the end. (b) This section shall come into force on the 30th Kislev, 5736 (4th December, 1975).

30. (a) In section 80 (a) of the principal Law, the words "if he Amendment of has attained the age of 55 after 10 years of service" shall be sectl0n 80- replaced by the words "if he has attained the age of fifty-five years after ten years of service, and notwithstanding the benefit rights clause, this Law shall also apply to his survivors if he dies after ten years of service". (b) This section shall have effect from the 26th Tammuz, 5733 (26th July, 1973).

31. Section 98 of the principal Law shall be re-marked as sec- Amendment of 98־ tion 98 (a) and the following subsection shall be added thereafter: sectl0n "(b) In re-determining a degree of invalidity, the Medical

1J Sefer Ha-Chukkim of 5714, p. 179 — LSI vol. VIII, p. 149; Sefer Ha- Chukkim of 5735, p. 238 — LSI vol. XXIX, p. 318.

131 Board shall only take into account invalidity arising out of the injury or injuries by reason of which the person examined first had a degree of validity fixed for him under this Law.".

Amendment of 32. (a) In the Defence Army of Israel (Permanent Service) (Benefits)

Defence Army T of Israel Law, 5714 — 1954 — (Permanent (!) section 4 shall be re-marked as subsection 4 (a) and Service) Law. ^ following subsection shall be added thereafter: "(b) A widow or widower is hereinafter referred to as a spouse."; (2) in section 22 — (a) in paragraph (1), the words "the widow, throughout her widowhood" shall be replaced by the words "the spouse, so long as she or he has not remarried"; (b) in paragraphs (2) and (3), the words "a widow entitled to a pension" shall wherever occurring be replaced by the words "a spouse entitled to a pension". (c) in paragraph (4), the words "widow" shall be replaced by the word "spouse"; (3) in section 23 — (a) in subsection (a) (1), the words "a widow so long as she has not remarried" shall be replaced by the words "a spouse so long as she or he has not re• married" and the words "the widow" shall be replaced by the words "the spouse"; (b) in subsection (al), the words "where the widow of a soldier, entitled to a pension... remarries" shall be replaced by the words "where the spouse of a soldier, entitled to a pension... remarries"; (c) in subsection (d), the words "more than one widow or where the widow" shall be replaced by the words "more than one spouse or where the spouse"; (4) in section 24 (b), the words "the widow" shall be replaced by the words "the spouse" and the words "no widow" shall be replaced by the words "no spouse"; (5) in section 25 — (a) in subsection (a) (1), the words "a widow who had been his wife for not less than three years last preceding his death or who had borne him a child, throughout her widowhood" shall be replaced by the words "a spouse if she or he had been the spouse for not less than three years last preceding his or her

132 death or a child had been borne to them, so long as she or he has not remarried"; (b) in subsection (a) (2) and (3), the words "a widow entitled" shall be replaced by the words "a spouse entitled"; (c) in subsection (a) (4), the word "widow" shall be replaced by the word "spouse"; (6) in section 26 (f), the words "Where a widow in receipt of a survivor's pension under this Law is entitled" shall be replaced by the words "Where a spouse in receipt of survivor's pension under this Law is entitled"; (7) in section 27 (a) (3), the words "more than one widow or orphans from several wives" shall be replaced by the words "more than one spouse or orphans by several spouses"; (8) section 28 shall be replaced by the following section:

"Gratuity to 28. (a) A spouse entitled to a pension who re• spouse who remarries. marries shall be paid a gratuity equal to the pension to which she or he was last entitled before remarrying, multiplied by thirty-six. In the case of a spouse who by reason of the provisions of section 27 or 32 is paid a pension at a reduced rate or no pension at all, the pension to which she or he would be entitled but for the provisions of the said sections shall be taken to be the pension for this purpose. (b) A gratuity which has been paid to a spouse under section 33 (a) shall be deducted from the gratuity payable under subsection (a). (c) Where the spouse's second marriage is terminated by the death of her or his partner within two years from the day on which it was concluded or is terminated at any time as a result of proceedings commenced within two years as aforesaid, the spouse shall from the day of the termination of the second marriage be paid the same pension as would be payable to her or him at that time but for the remarriage: Provided that where the gratuity under this section has already been paid, the amount of the pension shall be reduced until the amount of the reduction is equal to the amount of the gratuity received; but the amount of the pension shall not in any one month be reduced by more than one third. (d) Where the right of the spouse to the pension terminates before the aggregate amount of the reduction under subsection (c) is equal to the amount of the gratuity received, the balance shall be a debt of the spouse or of her or his estate to the Treasury."; (9) in section 30 (e), the word "widow" shall be replaced by the word "spouse"; (10) in section 31 (b), the words "a widow entitled" shall be replaced by the words "a spouse entitled"; (11) section 32 shall be replaced by the following section:

"Pension to 32. Notwithstanding the provisions of the preceding spouse on reaching sections — particular age (1) a self-supporting spouse who has no orphan with her or him and to whom section 23 or 30 (e) does not apply shall not be paid a survivor's pension so long as she or he has not attained the age of forty-five years; (2) a self-supporting spouse who has no orphan with her or him and to whom section 23 or 30 (e) applies shall not be paid a survivor's pension so long as she or he has not attained the age of thirty-five years."; (12) section 33 shall be replaced by the following section:

"Gratuity in 33. (a) A spouse who, by reason of section 32 lieu of pension to or of paragraph (1) of section 25 (a) as far as it t souse. concerns the duration of the marriage, does not receive a survivor's pension shall be paid a gratuity equal to the pension to which she or he would be entitled but for those sections, multiplied by twelve, and a spouse as aforesaid to whom section 23 or 30 (e) applies shall be paid a gratuity equal to that pension multiplied by thirty; however, in the case of a spouse who does not receive a survivor's pen• sion by reason of section 32, the gratuity shall — (1) if upon the death of the deceased she or he had attained the age of forty-three years — be the product of half the said pension and the number of months remaining until she or he attains the age of forty-five years; (2) if upon the death of the deceased she or he had attained the age of thirty-two and a half years and section 23 or 30 (e) applies to her or him — be the product of the said pension and the number of months remaining until she or he attains the age of thirty-five years, (b) For the purpose of determining the gratuity due under subsection (a) to a spouse to whom section 23 applies, the deduction from her or his pension, under section 23 (a) (1), of half the pension under the Soldiers' Families Law shall not be made."; (13) section 34 is hereby repealed; (14) in section 49 (c) (2), the words "or the Road Accident Victims (Compensation) Law, 5735 — 1975" shall be inserted after the words "the Civil Wrongs Ordinance (New Version)"; (15) in section 51, the figure '34" shall be deleted. (b) Subsection (a) (14) shall have effect from the 1st Tishri, 5737 (25th September, 1976). (c) The amendments enacted by this section, except subsection (a) (14), shall, in respect of the period after the date from which they have effect, apply also to the spouse of a woman who died before then unless, in consequence of the death and by right of the deceased's service, the spouse or other relatives of the deceased have received advantages from the Treasury otherwise than by way of periodical payments, except advantages under the Soldiers' Families Law and except a death gratuity paid to the spouse or other relatives otherwise than under the Defence Army of Israel (Benefits) Law, 5714 —1954, or the Soldiers' Families Law.

YIGAL ALON YEHOSHUA RABINOVITZ Deputy Prime Minister and Minister of Finance Minister of Foreign Affairs Acting Prime Minister

EFRAYIM KATZIR President of the State (No. 48)

SEVERANCE PAY (AMENDMENT No. 9) LAW, 5737 — 1977 *

Amendment of 1. In section 11 of the Severance Pay Law, 5723 — 1963 1). the section 11. following subsection shall be inserted after subsection (c):

"(d) Where an employee resigns because he has been elected head or deputy head of a local authority, and he is in that capacity paid a salary from the fund thereof, his resignation shall for the purposes of this Law be deemed to be dismissal. This provision shall not apply if the employer has agreed in writing vis-a-vis the employee that the period of his service in the said capacity shall be regarded as a period of leave without pay.".

YIGAL ALON MOSHE BARAM Deputy Prime Minister and Minister of Labour Minister of Foreign Affairs Acting Prime Minister

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 11th Adar, 5737 (1st March, 1977) and published in Sefer Ha-Chukkim No. 851 of the 21st Adar, 5737 (11th March, 1977) p. 115; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1266 of 5737, p. 31. !) Sefer Ha-Chukkim of 5723, p. 136 — LSI vol. XVII, p. 161; Sefer Ha- Chukkim of 5724, p. 167 — LSI vol. XVIII, p. 166; Sefer Ha-Chukkim of 5725, p. 215 — LSI vol. XIX, p. 225; Sefer Ha-Chukkim of 5733, pp. 222 and 258 — LSI vol. XXVII, pp. 248 and 299; Sefer Ha-Chukkim of 5736, p. 96 — LSI vol. XXX, p. 101; Sefer Ha-Chukkim of 5737, pp. 27 and 87 — supra, pp. 31 and 99.

136 (No. 49)

ARTISANS LICENSING LAW, 5737 — 1977 *

1. (a) The Minister of Commerce and Industry (hereinafter referred Trades which TQQ uire to as "the Minister") may, with the approval of the Labour Affairs !!censing. Committee of the Knesset, designate by order trades which require licensing whenever in his opinion such is necessary for reasons of public health, public safety or consumer protection. (b) An order under subsection (a) (hereinafter referred to as a "licensing order") — (1) shall define the nature and extent of the trade which requires licensing; (2) shall prescribe the period of validity of a licence to practise the trade which requires licensing; (3) may prescribe conditions which may be stipulated in a licence to carry on the trade which requires licensing, as well as conditions for the renewal of a licence. (c) The Minister shall not issue a licensing order in respect of a trade requiring a licence under another enactment unless licensing under that enactment is not prompted by the same reason as in the opinion of the Minister necessitates licensing under this Law. (d) The making of a licensing order shall require consultation with — (1) the Minister of Labour and, where licensing is imposed for reasons of public health, the Minister of Health; (2) the national organisation of artisans which in the opinion of the Minister is the representative organisation of the majority of organisations of artisans (hereinafter referred to as "the representative organisation"). (e) The making of a licensing order for a para-medical occupa• tion or for nursing shall require also the consent of the Minister of Health.

2. A person shall not practise a trade which requires licensing as Restriction on a self-employed artisan unless he is in possession of a valid licence trade^wrdch requires licensing. * Passed by the Knesset on the 18th Adar, 5737 (8th March, 1977) and published in Sefer Ha-Chukkim No. 852 of the 28th Adar, 5737 (18th March, 1977), p. 118; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1206 of 5735, p. 456.

137 issued to him under this Law by the Minister or a person empowered by him in that behalf, and in accordance with the conditions of the licence.

Bodies 3. A body corporate may practise a trade which requires licensing if at least one of the active directors or active partners or another responsible worker has a valid licence under this Law.

Relative of 4. The spouse or son of a deceased artisan who was authorised artisan. to practise a trade which requires licensing may practise that trade if at least one of the responsible workers employed by him has a valid licence under this Law.

Entitlement 5. (a) A person to whom one of the following applies shall on

to licence. ^ appii^^ be entitled to receive a licence to practise a trade requiring a licence: (1) he holds a trade certificate under Chapter Three of the Employment Service Law, 5719 —1959 in the trade in respect of which the licence is applied for, of a vocational standard prescribed by the Minister of Labour by regulations, or another certificate issued for this purpose on behalf of the Minister of Labour, attesting his vocational competence in the said trade; (2) he holds a certificate of accreditation as a technician or engineering technician on behalf of the Joint Accreditation Authority for Technicians and Engineering Technicians of the Ministry of Labour and the Ministry of Education and Culture, and the field in which he has been trained is related to the trade in respect of which the licence is applied for; (3) he is an engineer registered in the Register of Engineers and Architects, within the meaning of the Engineers and Architects Law, 5718 — 1958 2), or a licensed surveyor within the meaning of the Survey Ordinance3), and the field in which he has been trained is related to the trade in respect of which the licence is applied for. (b) Where a certificate or registration specified in subsection (a) is cancelled or suspended, a licence issued under this Law shall also be cancelled or suspended, as the case may be.

i) Sefer Ha-Chukkim of 5719, p. 32; LSI vol. XIII, p. 29. .Sefer Ha-Chukkim of 5718, p. 108; LSI vol. XII, p. 124 (־ s) Laws of Palestine vol. II, p. 1393 (English Edition).

138 6. (a) Notwithstanding the provisions of section 5, there shall also Licence to be entitled on application to receive a licence— practised ° (1) a person who has produced confirmation by the National trade in the Headquarters of the Association of Artisans and Small past' Industrialists in Israel that he is a member of one of the branches of the Association and has practised, as a self- employed artisan, the trade in respect of which the licensing order has been made for not less than two out of the five years immediately preceding the coming into force of the licensing order; (2) a person who has proved to the satisfaction of a com• mittee referred to in subsection (b) that he has practised, as a self-employed artisan, in Israel or abroad, the trade in respect of which the licensing order has been made for at least two out of the five years immediately preceding the coming into force of the order. (b) A committee for the purposes of subsection (a) (2) shall consist of three members, viz. one member appointed by the Minister who shall be the chairman of the committee, one member appointed by the Minister of Labour and one member appointed by the Minister and the Minister of Labour jointly from a list, submitted to them by the representative organisation, of candidates holding a licence to practise a trade in respect of which a licensing order has been made; if the list is not submitted within a reasonable time after receipt of a request to submit, it, the Ministers may appoint such member as they see fit. (c) In respect of a person entitled under this section, a licensing order shall come into force upon the expiration of two years from the date of its publication, provided that he makes application for a licence within six months from the date of publication of the order. Applications for licences for persons to which subsection (a) (1) applies may be submitted en bloc by the National Headquarters of the Association of Artisans and Small Industrialists in Israel on behalf of members of the association.

7. (a) The Minister may, after consultation with the Council Professional referred to in section 8, prescribe rules for the professional etnics• ethics of persons practising a trade which requires licensing, either generally or in respect of a particular trade, including directions as to the establishment, composition and procedure of permanent or ad hoc disciplinary committees, which shall investigate conduct in• consistent with the rules of ethics and may recommend to the

139 Minister the following disciplinary measures : a warning, a reprimand and the suspension or cancellation of a licence. (b) A decision of the Minister to suspend or cancel a licence shall be appealable to the District Court consisting of a single Judge, and the decision of the Court shall be final. (c) For the purposes of subsection (a), non-fulfilment of a condition of the licence connected with supplementary training or vocational education shall be regarded as an infringement of professional ethics.

Trade 8. (a) The Government shall appoint a Trade Council consisting Council. of twenty-one members (hereinafter referred to as "the Council"). (b) The composition of the Council shall be as follows: (1) the Minister, or a State employee appointed by him in that behalf, who shall be the chairman of the Council; (2) six State employees; (3) seven members of the public recommended by the Minister after consultation with public organisations who in his • opinion are •concerned; (4) seven persons from a list of candidates submitted by the representative organisation, provided that the list is submitted within a reasonable time after receipt of a request to submit it.

Function of 9. The Council shall advise the Minister on any matter relating Council. to the implementation of this Law.

Fees. 10. The Minister may, by order, prescribe a fee for the issue or renewal of a licence.

Penalties. 11. A person who contravenes the provisions of section 2 shall be liable to imprisonment for a term of one year or a fine of 50,000 pounds.

Prevention 12. Where a licensing order has been made in respect of any of double trade, a licence to practise such trade shall not, for reasons identical licensing. with the reasons for which such order was made, be required under any other Law which existed on the day when such order was made or under regulations or an order made under any such Law.

Amendment of 13. In the Licensing of Businesses Law, 5728— 1968 1). the following

Businisfslaw. section sha11 be inserted after section S:

i) Sefer Ha-Chukkim of 5725, p. 204; LSI vol. XXII, p. 232.

140 "Business in 8A. The licensing authority shall not issue a licence which trade requiring under this Law for a business in which a trade licensing requiring licensing under the Artisans Licensing is practised. Law, 5737 — 1977, is practised unless the owner of the business meets the conditions prescribed in that Law and in regulations thereunder.".

14. The Minister is charged with the implementation of this Law implementation and may with the consent of the Minister of Labour and the reflations approval of the Labour Affairs Committee of the Knesset, make regulations as to any matter relating to its implementation.

15. This Law shall come into force upon the expiration of one Commencement, year from the date of its publication in Reshumot.

YITZCHAK RABIN HAIM BAR-LEV Prime Minister Minister of Commerce and Industry

EFRAYIM KATZIR President of the State

141 (No. 50)

EMPLOYMENT SERVICE (AMENDMENT No. 5) LAW, 5737 — 1977 *

Replacement of 1. In the Employment Service Law, 5719— 19591J (hereinafter section 77. referred to as "the principal Law"), section 77 shall be replaced by the following section:

"Offences in 77. An employer, or a person requiring an em• connection with Chapter Two. ployee, who contravenes any of the provisions of Chapter Two shall be liable to a fine of 3,750 pounds in respect of every person in respect of whom the offence is committed, or, where the offence concerns the engagement or non-engagement of a person as an employee, a fine of 6,000 for every such person and an additional fine of 250 pounds in respect of every day on which he employs an employee in contravention of a provision as aforesaid.".

Addition of 2. In section 80 of the principal Law, paragraph (2) shall be section 80. deleted and paragraph (3) shall be re-marked as paragraph (2).

YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 18th Adar, 5737 (8th March, 1977) and published in Sefer Ha-Chukkim No. 853 of the 28th Adar, 5737 (18th March, 1977), p. 122; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1286 of 5737, p. 150. J) Sefer Ha-Chukkim of 5719, p. 32 — LSI vol. XIII, p. 29; Sefer Ha- Chukkim of 5729, p. 77 — LSI vol. XXIII, p. 86; Sefer Ha-Chukkim of 5731, p. 80 — LSI vol. XXV, p. 77; Sefer Ha-Chukkim of 5733, p. 261 — LSI vol. XXVII, p. 304; Sefer Ha-Chukkim of 5737, p. 46 — supra, p. 58.

142 (No. 51)

NATIONAL INSURANCE (AMENDMENT No. 26) LAW, 5737— 1977 *

1. In the National Insurance Law (New Version), 5728• 1968 1). Addition of the following section shall be inserted after section 20: section 20A.

"Insured person 20A. Where immediately before becoming entitled who has received invalidity pension. to an old-age pension an insured person received a monthly pension under section 127Y (a) (1) for a period of not less than one year, the rate of the old-age pension due to him shall not be less than the amount of the last such monthly pension paid to him; but a dependants' allowance paid to him under section 127KK shall be taken into account for the purposes of this section so long as the conditions for its payment exist.".

2. This Law shall come into force on the 13th Nisan, 5737 (1st Commencement. April, 1977) and shall in respect of the time after its coming into force apply also to a person who became entitled to an old-age pension before its coming into force.

YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 18th Adar, 5737 (8th March, 1977) and published in Sefer Ha-Chukkim No. 853 of the 28th Adar (18th March, 1977), p. 122; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1288 of 5737, p. 156. i) Sefer Ha-Chukkim of 5728, p. 108 — LSI vol. XXII, p. 114; Sefer Ha- Chukkim of 5736, p. 276 — LSI vol. XXX, p. 271; Sefer Ha-Chukkim of 5737, p. 88; supra, p. 101.

143 (No. 52)

NATIONAL INSURANCE (AMENDMENT No. 27) LAW, 5737 —1977 *

Amendment of 1. In section 143 of the National Insurance Law (Consolidated section 143. Version), 5728 —1968 1). the following subsection shall be inserted after subsection (c): "(cl) The following provisions shall apply to a person who, being entitled to a dependants' pension, becomes entitled to an old-age pension or, being entitled to an old-age pension, becomes entitled to a dependants' pension: (1) if he opts for the old-age pension, he shall be paid such pension and, in addition, one half of the amount of the dependants' pension due to him, provided that the addition shall not exceed 50 p.ct. of the amount of the survivors' pension under section 21 (a) (1); (2) if he opts for the dependants' pension, such pension shall not be less than the aggregate amount of pension which would be due to him under paragraph (1) if he had opted for the old-age pension; (3) for the purposes of this subsection, "person entitled to an old-age pension" means a person entitled to an old-age pension who has completed a qualifying period under section 15 (a).".

Commencement. 2. This Law shall come into force on the 13th Nisan, 5737 (1st April, 1977) and shall in respect of the time after its coming into force apply also to a person who became entitled to an old-age pension before its coming into force.

YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour EFRAYIM KATZIR President of the State

• Passed by the Knesset on the 18th Adar, 5737 (8th March, 1977) and published in Sefer Ha-Chukkim No. 853 of the 28th Adar, 5737 (18th March, 1977), p. 123; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1288 of 5737, p. 157. i) Sefer Ha-Chukkim of 5728, p. 108 — LSI vol. XXII, p. 114; Sefer Ha- Chukkim of 5736, p. 276 — LSI vol. XXX, p. 271; Sefer Ha-Chukkim of 5737, pp. 88 and 122 — supra, pp. 101 and 143.

144 (No. 53)

AIR NAVIGATION (SECURITY IN CIVIL AVIATION) LAW,

5737 — 1977 *

Chapter One: Interpretation

1. In this Law— Definitions. "security guard" means a person whom the Minister of Police or a person empowered by him in that behalf has empowered to be a security guard;

"the Ordinance" means the Criminal Procedure (Arrest and Searches) Ordinance (New Version), 5729 — 1969»);

"HAGA member" means a member of HAGA (Civil Defence Service), within the meaning of the Civil Defence Law, 5711 — 19512), on whom powers of arrest have been conferred under section 4 of the Ordinance;

"explosive" has the same meaning as in the Explosives Law, 5714— 1954 3);

"soldier" means a soldier on whom powers of arrest have been conferred under section 4 of the Ordinance;

"Israeli aircraft" and "military aircraft" have the same respective meanings as in the Air Navigation (Offences and Jurisdication) Law, 5731 —1971"*);

"aviation installation" includes premises in the possession of an aircraft operator, and passenger or freight terminals, not situated in an aerodrome or landing ground;

* Passed by the Knesset on the 25th Adar, 5737 (15th March, 1977) and published in Sefer Ha-Chukkim No. 854 of the 2nd Nisan, 5737 (21st March, 1977), p. 126; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1273 of 5737, p. 69. !) Dinei Medinat Yisrael (Nusach Chadash) No. 12, p. 284; NV vol. II, p. 30. .Sefer Ha-Chukkim of 5711, p. 78; LSI vol. V, p. 72 (־ s) Sefer Ha-Chukkim of 5714, p. 64; LSI vol. VIII, p. 57. *) Sefer Ha-Chukkim of 5731, p. 60; LSI vol. XXV, p. 55.

145 "aviation aid" means any instrument or installation, even though not situated in any aircraft, aerodrome or landing ground, used as an aid to the navigation of an aircraft in flight or to the approach thereof or to communication therewith;

"operator" —

(1) in relation to an aircraft, includes the owner or charterer thereof and the person flying it; (2) in relation to a landing ground, means the holder of a licence for the landing ground under the Air Navigation Law, 1927 J), or a person validly appointed as the operator by virtue of the said Law or of regulations thereunder;

"aerodrome" and "landing ground" have the same respective meanings as in the Air Navigation Law, 1927;

"the Minister" means the Minister of Transport.

Chapter Two: Security Directions

Security 2. The Minister may direct the operator of an aircraft to take directions to aircraft measures for the secure transportation of persons or goods in the operator. aircraft, including measures relating to the presence of persons or goods in the vicinity of the aircraft or to equipment therein or to structural repairs and alterations to be carried out thereon, all as shall be specified in the direction.

Security 3. The Minister may direct a landing ground operator and an directions to landing ground aviation installation manager to take measures specified in the operator and direction for the security of the following: manager of aviation (1) the landing ground or aviation installation or any part installation. thereof; (2) aircraft which are or may be in the landing ground or aviation installation; (3) persons or goods which are or may be in the landing ground or aviation installation.

!) Laws of Palestine vol. Ill, p. 2411 (English Edition); P.G. of 1939, Suppl. II, p. 565 (English Edition); Sefer Ha-Chukkim of 5710, p. 63 — LSI vol. IV, p. 59; Sefer Ha-Chukkim of 5732, p. 148 — LSI vol. XXVI, p. 169.

146 4. A direction under section 2 or 3 may be general, for particular Modes of classes of cases or personal. dfrectfons.

5. An aircraft operator shall not transport any person or goods Duty to take in an aircraft, a landing ground operator shall not operate the ^^^3 landing ground and an aviation installation manager shall not operate the aviation installation unless the measures directed under section 2 or 3 have been taken in respect of the aircraft, landing ground or aviation installation, as the case may be.

6. (a) Where the Minister deems it essential to the security of Land adjacent . ., . . , .... . to aerodromes, civil aviation x , he may by direction empower an aerodrome manager, landing grounds or direct a landing ground operator, to take such security measures aviation on land adjacent to the aerodrome or landing ground as shall be specified in the direction. (b) A direction under subsection (a) may be general or for particular classes of aerodromes or landing grounds or for a particular aerodrome or landing ground. (c) A direction under subsection (a) issued in respect of a particular aerodrome or landing ground shall as far as possible be served also upon the owner or occupier of the land to which the direction applies. Notice of the issue of the direction shall be published in Reshumot, indicating the aerodrome or landing ground for which the direction has been issued, the place of deposit of a map or other document setting out the boundaries of the land to which the direction applies and the hours when such map or document may be inspected. (d) An aerodrome manager or landing ground operator or a person acting on his behalf may, for the purpose of implementing a direction under subsection (a), enter the land to which the direction applies and take reasonable measures for its implementation, including the placing and fencing off of instruments and other equipment on the land. (e) For the purposes of this section, security measures are measures designed for the security of the aerodrome or landing ground or of the aircraft, persons or goods which are or may be there. (f) This section shall apply mutatis mutandis to an aviation aid and to the person responsible for its operation. (g) A person who considers himself aggrieved by a direction issued under this section in respect of a particular aerodrome, landing ground or aviation aid may appeal to an appeal committee

147 established under Chapter Five of the Emergency Land Requisition (Regulation) Law, 5710 — 1949 1), and the said chapter shall apply to the appeal with the following modifications: (1) every reference to the competent authority shall be taken to be a reference to the Minister; (2) every reference to a housing order or land requisition order shall be taken to be a reference to a direction; (3) the words "necessary for any of the purposes mentioned in section 3 (b)" shall, wherever occurring, be taken to be replaced by the words "essential to the security of civil aviation". (h) Where a direction under subsection (a) imposes any restraint on the exercise of any right incidental to the ownership of the land in respect of which the direction has been issued, within the meaning of section 3 (d) of the Land (Acquisition for Public Purposes) Ordinance, 1943 2), compensation shall be paid out of the Treasury as if such restraint had been imposed by virtue of the said Ordinance, and for the purposes of section 12 thereof the date of publication of the notice of the intention to acquire the land shall be replaced by the date on which the direction under subsection (c) was published. The payment of compensation shall not be a precondition to the exercise of powers under subsection (d).

Security 7. Where any part of an aerodrome, landing ground, aviation measures in a part occupied installation or aviation aid is occupied by a person other than by another an aerodrome manager, landing ground operator, aviation installation person. manager or person responsible for the operation of an aviation aid, as the case may be, the aerodrome manager, the person responsible for the operation of the aviation aid and any person competent to take security measures under this Law may take them in that part notwithstanding that it is occupied by another person and carry them out in a reasonable manner.

Control of 8. (a) The Minister may direct an aircraft operator, landing ground security measures. operator, aviation installation operator or person responsible for the operation of an aviation aid to supply to him any information in his possession as to the security measures which have been or are being taken by him, in order to ascertain whether directions

.p. 1; LSI vol. IV, p. 3 5710״ Sefer Ha-Chukkim of (1 2) P.G. of 1943, Suppl. I, p. 44 English Edition).

148 under section 2 or 3 should be issued or to examine whether the provisions of this Law and the regulations thereunder have been complied with. (b) A security guard or police officer may enter and search any aircraft, landing ground, aviation installation or land in respect of which a direction under section 6 has been issued and any structure or installation thereon in order to examine whether the provisions of this Law and the regulations thereunder have been complied with. (c) Where it appears to a security guard or police officer that the taxiing, take-off or landing of any aircraft involves a risk to the security of civil aviation or that any provision of this chapter has not been complied with in respect of any aircraft, he may, in coordination with the air traffic control unit concerned, take measures necessary to stop the aircraft, or prohibit its take-off or landing, so long as no risk to flight safety is involved in his doing so. (d) The provisions of section 26 to 29 of the Ordinance shall apply mutatis mutandis to entry and search by a security guard or police officer under subsection (b).

Chapter Three: Powers of Search, Identification and Implementation

9. (a) Each of the persons enumerated in section 10 may search — Auxiliary (1) the effects and body of any person entering or being powers• in any aerodrome, landing ground or aviation installation and any vehicle entering or being in the same; (2) the effects and body of any person before he boards an aircraft, while he is therein or shortly after he disembarks therefrom; (3) freight and other goods before they are brought into any aerodrome, landing ground or aviation installation or before they are loaded onto an aircraft or shortly after they are disembarked therefrom or while they are in an aerodrome, landing ground, aviation installation or aircraft; (4) any aircraft entering or being in any aerodrome or landing ground if in his opinion the search is necessary to protect the security of the public or if he suspects that the person is unlawfully carrying arms or explosives with him or that there are arms or explosives unlawfully in the vehicle, aircraft, freight or other goods. (b) Every one of those enumerated in section 10 may require a person being in any aerodrome, landing ground or aviation instal• lation to identify himself to him. (c) Where a person refuses to allow his effects or his body or any freight or other goods to be searched under the circumstances specified in subsection (a) by a person competent therefor or refuses to identify himself as provided in subsection (b), the person com• petent to carry out the search or require the identification may, without prejudice to his power to carry out the search despite the refusal — (1) prevent that person from entering or leaving the aerodrome, landing ground, aviation installation or aircraft or prevent the freight or other goods from being brought into or taken out of it, as the case may be; (2) remove the person or freight or other goods from the aerodrome, landing ground, aviation installation of aircraft, as the case may be. (d) For the purposes of this section, land in respect of which a direction under section 6 has been issued shall be treated as an aerodrome or landing ground, as the case may be.

Persons 10. (a) The following may carry out a search under section 9: authorised to carry out (1) a security guard; search. (2) a police officer; (3) a soldier; (4) a HAGA member. (b) In carrying out his functions under this chapter, a security guard shall upon demand produce a document attesting to his functions, issued by the Minister of Police or a person empowered by him in that behalf.

Application 11. (a) The powers of a police officer under the Ordinance re• of Ordinance. garding the seizure of an article discovered in a search under this Law shall also vest in a security guard, a soldier and a HAGA member authorised to carry out a search as provided in section 9, and the provisions of Chapter Four of the Ordinance shall apply mitlatis ' mutandis to the article seized. (b) Chapter Five of the Ordinance shall apply to a search and a seizure under this Law as if they were carried out under the Ordinance.

150 Chapter Four: Duties of Aircraft Operator

12. (a) An aircraft operator— Prohibition of (1) shall not transport in the aircraft any person who transPortatlon• does not consent to his effects or body being searched as provided in section 9; (2) shall not transport in the aircraft any freight or other goods if the person who has control of the freight or goods at the time does not consent to the same being searched as provided in section 9; (3) shall not transport a person in the aircraft if the search measures required to be taken by the operator in the aerodrome, landing ground or aviation installation ac• cording to directions issued to the operator under Chapter Two do not in fact enable the search to be carried out in the case concerned; (4) shall not transport any freight or other goods in the aircraft if the same are not in fact capable of being examined by the search measures required to be taken by the operator in the aerodrome, landing ground or aviation installation according to directions issued to the operator under Chapter Two.

(b) An aircraft operator may refuse to transport any person or freight or other goods in the aircraft if in the circumstances of the case there is ground for suspicion that such transportation involves a risk to the security of the public.

13. (a) Whoever acquires from an aircraft operator a right to Implicit transportation by air of any persons or of any freight or other aereeme goods shall be deemed to have agreed to the operator having the right to refuse to carry out the transportation under the circumstances mentioned in section 12. (b) In addition to aircraft operators to which it applies under section 22, this section shall apply to the operator of a non-Israel aircraft if the agreed flight includes a landing or take-off in Israel. (c) For the purposes of this section, "right to transportation by air" includes the charter of the whole or part of an aircraft for the transportation of persons or of freight or other goods.

151 Chapter Five: Prohibition of Carrying Arms and Explosives

Prohibitions. 14. A person shall not carry arms or explosives on his body or in his effects or in any freight or other goods, either of himself or of others, or keep arms or explosives in some other place or in any other manner — (1) in an aircraft; (2) in any aerodrome, landing ground or aviation installation; (3) on land in respect of which a direction under section 6 has been issued; (4) in an aviation aid.

Restrictions 15. (a) Section 14 shall not apply to — on prohibitions. (1) a security guard, police officer, soldier or HAG A member lawfully authorised or required to carry arms or explosives, by virtue of his functions in the places specified in section 14, in accordance with rules prescribed by the Minister of Transport; (2) a person transporting arms or explosives in an aircraft if they are not within his reach during the flight and he has given the aircraft operator advance notice and the operator has consented to transportation as aforesaid; (3) a person carrying arms or explosives in the area of any aerodrome, landing ground or aviation installation if he has given the aerodrome manager, landing ground operator or aviation installation manager advance notice and the same has consented to their being so carried. (b) Rules under subsection (a) shall not require publication in Reshumot. (c) The Government may determine additional categories of persons to whom section 14 is not to apply; such determination shall not require publication in Reshumot.

Chapter Six: Miscellaneous Provisions

PfenaHies. 16. (a) A person who contravenes the provisions of section 5 or 12 (a) or gives information under section 8 (a) which he knows or ought to know to be false shall be liable to imprisonment for a term of three years or a fine of 250,000 pounds. (b) A person who refuses or fails to give information he has been required to give under section 8 (a) shall be liable to imprisonment for a term of one year or a fine of 100,000 pounds.

!52 (c) A person who contravenes the provisions of section 14 shall be liable to imprisonment for a term of three years or a fine of 100,000 pounds. (d) A person who wilfully interferes with a security guard, police officer, soldier or HAGA member, or with a person lawfully acting under section 6 (d) or (f) to carry out a direction under section 6 (a), in the discharge of his functions under this Law shall be liable to imprisonment for a term of two years or to a fine of 100,000 pounds. (e) Where a person has been convicted under this section, the court may, in addition to any other penalty it may impose — (1) cancel a licence for the operation of aircraft issued to that person under section 2 of the Aviation Services Licensing Law, 5723 — 19631), suspend it for such period as he may prescribe, vary its conditions, or disqualify that person for receiving such a licence; (2) cancel a landing ground licence issued to that person under section 9 of the Air Navigation Law, 1927, suspend it for such period as he may prescribe, vary its conditions, or disqualify that person for receiving such a licence; (3) cancel an airman's licence issued to such person under the Air Navigation Law, 1927, and the regulations there­ under, suspend it for such period as he may prescribe, vary it, or disqualify such person for receiving such a licence.

17. (a) Where the Minister has a reasonable suspicion that a Suspension •t״person has committed an offence under section 16, he may suspend and deferme a licence issued to such person under one of the enactments specified in section 16 (e) or defer consideration of an application submitted by such person for such a licence. The suspension or deferment shall become void if an information in respect of the offence which was the ground therefor is not filed within three months from the commencement thereof. Where an information is filed within the said period, the suspension or deferment shall, unless the court otherwise decides, be extended until no more appeal lies in proceedings under the information. (b) The provisions of subsection (a) shall not derogate from the power of the Minister to cancel the suspension or deferment before the time prescribed therein.

!) Sefer Ha-Chukkim of 5723, p. 104; LSI vol. XVII, p. 127.

153 Saving of 18. The powers and duties under this Law shall not derogate laws. from powers and duties under other laws.

Immunity. 19. A security guard, police officer, soldier, HAGA member, aero• drome manager, landing ground operator, aviation installation operator, aircraft operator or person responsible for the operation of an aviation aid shall not bear criminal or civil responsibility for an act done in respect of any person in accordance with the provisions of this Law.

Restriction on 20. This Law shall not apply to military aircraft. application.

Delegation 21. The Minister may delegate to a public servant any of his of powers. powers under this Law, except the power to make regulations with legislative effect and the powers under section 17.

Application 22. (a) Every provision of this Law or of regulations thereunder outside Israel. concerning — (1) an aircraft shall apply to an Israeli aircraft wherever it may be and to any other aircraft so long as it is in Israel, and to their operators; (2) an aviation installation shall also apply to an aviation installation situated outside Israel if it is occupied or managed by an Israeli operator. (b) Without prejudice to the provisions of subsection (a), the Minister may issue to the operator of a non-Israeli aircraft directions as to a flight to or from Israel as if the aircraft were an Israeli aircraft.

Amendment of 23. In section 2 (b) of the Penal Law (Offences Committed Abroad) Penal Law 1 (Offences (Consolidated Version), 5733 — 1973 ). the following paragraph shall Committed be added after section (12): Abroad). "(13) the Air Navigation (Security in Civil Aviation) Law, 5737 —1977.".

Amendment of 24. In the Powers of Search (Emergency) (Temporary Provisions) Powers of 2 Search Law, 5729 — 1969 ). (Emergency) (1): the definitions of "landing ground" and "aerodrome" in (Temporary Provisions) Law. section 1 sha11 be deleted: 1) Sefer Ha-Chukkim of 5733, p. 36; LSI vol. XXVII, p. 23. 2) Sefer Ha-Chukkim of 5729, p. 226 — LSI vol. XXIII, p. 246; Sefer Ha- Chukkim of 5734, p. 34 — LSI vol. XXVIII, p. 32.

154 (2) in section 2 (a) — (a) the words "at any aerodrome or landing ground" in paragraph (1) shall be deleted; {b) paragraph (2) is hereby repealed; (c) the word "aircraft" in paragraph (5) shall be deleted.

25. The Government shall determine matters on which the Minister, Duty of when exercising his powers under this Law, shall consult with the consultatlon• Prime Minster or the Minister of Defence or a person appointed by either of them for this purpose. A determination as aforesaid shall not require publication in Reshumot.

26. The Minister is charged with the implementation of this Implementation Law and may make regulations as to any matter relating to its and re8ulatIons• implementation.

27. (a) Directions as to matters dealt with by Chapter Two Transitional issued by virtue of the Aviation Services Licensing Law, 5723 — pr°vls!ons. 1963, before the coming into force of this Law, whether with regard to conditions of a licence or otherwise, shall from the date of the coming into force of this Law be deemed to have been issued by virtue of the powers conferred by Chapter Two. (b) So long as the Government has not taken a decision under section 25, the Minister may prescribe rules under sec• tion 15 (a), provided that they shall expire not later than three months from the date of the coming into force of this Law.

YITZCHAK RABIN GAD YAACOBI Prime Minister Minister of Transport

EFRAYIM KATZIR President of the State

155 (No. 54)

OIL IN NAVIGABLE WATERS ORDINANCE (AMENDMENT No. 3) LAW, 5737 — 1977 *

Amendment of 1. In section 3 of the Oil in Navigable Waters Ordinance, 1936») section 3. (hereinafter referred to as "the Ordinance"), the words "one hundred and fifty thousand" shall be replaced by the words "three hundred and seventy-five thousand".

Amendment of 2. In section 3A of the Ordinance —

"the Attorney-General or his representative or״ section 3A. ^ ^ WOfds shall be inserted before the words "the Port Manager" in subsection (1); (2) in subsection (3), the words "the Attorney-General or his representative or" shall be inserted before the words "the Port Manager" in the two places in which they occur.

Amendment of 3. In section 3B (2) of the Ordinance, the words "twenty-five section 3B. thousand" and the words "fifty thousand" shall be respectively replaced by the words "sixty-two thousand five hundred" and the words "one hundred and twenty-five thousand".

Replacement of 4. Section 3C of the Ordinance shall be replaced'by the following section 3C. section:

"Provision as 3C. Where a person has paid the fine referred to ffnePand°n Payi"S in section 3A (2) and the amount specified in the expenses. notice of indebtedness referred to in section 7A (1), he shall be deemed to have pleaded guilty in court and been convicted and have undergone his punish­ ment.".

Replacement of 5. Section 3D of the Ordinance shall be replaced by the following section 3D. section:

* Passed by the Knesset on the 24th Adar, 5737 (14th March, 1977) and published in Sefer Ha-Chukkim No. 855 of the 5th Nisan, 5737 (24th March, 1977), p. 134; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1254 of 5736, p. 350. J) P.G. of 1936, Suppl. I, p. 234 (English Edition); Sefer Ha-Chukkim of 5726, p. 42 — LSI vol. XX, p. 34; Sefer Ha-Chukkim of 5733, p. 2 — LSI vol. XXVII, p. 3.

156 "Provision as 3D. (1) Where a person has not paid the fine and to person not paying fine together therewith the amount specified in the and/or expenses. notice of indebtedness for expenses, or has paid the fine but has not paid the whole or part of the amount specified in the notice of indebtedness for expenses, or has paid the amount specified in in the notice of indebtedness but has not paid the fine, the summons delivered to him shall be deemed to be a summons to trial and an infor• mation served upon and delivered to him under Articles Four and Five of Chapter Four of the Criminal Procedure Law, 5725 —19651). (2) Where a person has not paid the fine and the amount specified in the notice of indebtedness for expenses referred to in section 7A (1) and the Court convicts him of the offence, the Court shall impose on him a fine not less than the fine prescribed for that offence under section 3B unless he proves that special circumstances, to be set out in the sentence, justify the imposition of a lesser fine, and it may charge him with the costs of the proceedings in an amount prescribed by it, whether he appeared in court or was tried in his absence.".

Amendment of 6. In section 3E of the Ordinance, the words "or for the payment section 3E. of the expenses of cleansing" shall be inserted after the words "for the payment of the fine".

Amendment of 7. In section 5 (4) of the Ordinance, the words "twenty-five section 5. thousand" shall be replaced by the words "one hundred thousand".

Replacement of 8. Section 7 of the Ordinance shall be replaced by the following section 7. sections:

"Liability for 7. (1) A person convicted of an offence under expenses of cleansing. section 3 shall reimburse the expenses incurred by another person — (a) in cleansing the sea, the shore or anything polluted by oil discharged or allowed to escape in committing the offence;

i) Sefer Ha-Chukkim of 5725, p. 161; LSI vol. XIX, p. 158.

157 (b) in locating oil discharged or allowed to escape, preventing or controlling pollution thereby and reducing the damage caused. (2) A court which convicts a person of an offence under section 3 may in the sentence, in addition to any penalty it may impose, order him to reimburse the expenses referred to in subsection (a), whatever the amount thereof, if the person who incurred them has applied for the order. (3) A decision as to expenses under this section shall, for the purposes of an appeal by the accused and of the collection of the amount awarded, be treated as a judgment of the same court in a civil action. (4) Where more than one person is convicted of an offence referred to in subsection (a), the court

may; in its decision under, this, section,, impose the expenses on all of them jointly or severally or on part of them, as it may see fit in the circumstances of the case, and it may prescribe the part to be borne by each. (5) Where the court does not give a substantive decision on an application under this section, such fact shall not derogate from the right of the person who incurred the expenses to claim them in an ordinary action.

Notice of 7A. (1) Where a summons with an option to pay a indebtedness for expenses fine under section 3A (1) is delivered to any where option of person, the person who delivers it may attach fine is given. thereto a notice of indebtedness for the amount of expenses incurred for any of the purposes mentioned in section 7 (1). The notice of in• debtedness shall name the person entitled to the amount of expenses specified therein. (2) A person to whom a notice of indebtedness is delivered under subsection (1) may, within thirty days from the date of delivery, pay into, or send by post to, the court named in the summons the amount specified in the notice of indebtedness, in addition to the whole amount

158 of the fine stated in the summons, and upon doing so, he shall be deemed to have pleaded guilty in court and been convicted and have undergone his punishment, and the amount paid by him shall stand to the credit of the person entitled to it according to the notice of in• debtedness.

Rules of 7B. The Minister of Justice may prescribe special procedure. rules of procedure for the purposes of sections 7 and 7A.

Application 7C. If a fund has been established under section of fines. 7D, every fine imposed for an offence under this Ordinance shall be paid into it.

Fund for the 7D. (1) The Minister of Transport may, with the Prevention of Sea Pollution. approval of the Home Affairs and Ecology Com• mittee of the Knesset, make regulations concerning the establishment of a "Fund for the Prevention of Sea Pollution" within the framework of the Ministry of Transport. (2) The purpose of the Fund shall be to con• centrate financial resources for the fight against sea pollution and the prevention of pollution, and the cleansing and inspection, of the sea and the seashore. (3) The moneys of the Fund. shall only be devoted to its purposes and shall be expended in accordance with the directions of the Minister of Transport. (4) In addition to the moneys made available to the Fund from the State Budget, from fines under section 7C and from fees under section 7E, the Fund may accept moneys and appropriations from any person for the furtherance of its purposes and activities. (5) The Minister of Transport shall by regu• lations, with the approval of the Home Affairs and Ecology Committee of the Knesset, prescribe pro• cedure for the operation of the Fund.

159 Marine 7E. (1) The Minister of Transport may by regula• environment protection tions, with the approval of the Home Affairs and fee. Ecology Committee of the Knesset, impose a "marine environment protection fee" on owners or operators of vessels, as well as on owners or operators of installations on land and at sea from which oil might be discharged or allowed to escape into any waters to which this Ordinance applies. (2) The modes of fixing . the fee, its grading according to classes of vessels or installations, their employment, the goods therein or any other criterion, the modes of collecting it and any other arrange• ment regarding the fee shall be prescribed by regulations as aforesaid. (3) The revenue from the fee shall be paid into the Fund established under section 7D.".

Amendment of 9. Section 8 (2) of the Ordinance shall be replaced by the following section 8. section: "(2) Where any fine and expenses imposed by the Court in proceedings against the owner or master of a vessel for an offence under this Ordinance are not paid at the time and in the manner prescribed by the Court, the Court may direct that the amount not paid shall be collected by way of attachment or seizure and sale of the vessel, its tackle, furniture and equipment. This provision shall not derogate from other powers of the Court in the matter of enforcing payment.".

YITZCHAK RABIN GAD YAACOBI Prime Minister Minister of Transport

EFRAYIM KATZIR President of the State

.160 (No. 55)

YOUTH (TRIAL, PUNISHMENT AND MODES OF TREATMENT) (AMENDMENT) LAW, 5737 — 1977 *

1. In the Youth (Trial, Punishment and Modes of Treatment) Amendment of Law, 5731 — 1971 *) (hereinafter referred to as "the principal Law"), sectl0n 11 section 13 shall be replaced by the following section:

"Places of 13. (a) A minor may only be detained in a detention for minors. separate place of detention for minors or in a wing of a general place of detention which is completely separate, intended for minors only and without means of access or visual communication between it and the other wings of the place of detention or their inmates. (b) Notwithstanding the provision of subsec• tion (a), a minor may be held, for purposes of investigation only, at a police-station, provided that he is held separately and that there is no contact between him and suspects or arrested persons of full age. If the police-station is in a locality in or near which there is a place of detention for minors, the minor may be kept overnight in that place of detention only. (c) The Minister of Social Welfare may declare a closed home to be a place of detention for minors.".

2. In section 49 of the principal Law, subsection (c) shall be Amendment of replaced by the following subsection: "(c)(1) Section 13 (a) shall come into force on the day prescribed by order by the Minister of Social Welfare, but not later than the 15th Nisan, 5740 (1st April, 1980); however, pending the making of an order as aforessaid a minor shall not be detained together with a person other than a minor. An order as aforesaid may be made

• Passed by the Knesset on the 25th Adar, 5737 (15th March, 1977) and published in Sefer Ha-Chukkim No. 855 of the 5th Nisan, 5737 (24th March, 1977), p. 137; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1284 of 5737, p. 135. i) Sefer Ha-Chukkim of 5731, p. 137; LSI vol. XXV, p. 128.

161 according to zones defined by the Minster of Social Welfare with the consent of the Minister of Police. (2) The Minister of Social Welfare, with the approval of the Public Services Committee of the Knesset, may, before the date stated in paragraph (1), prescribe by order that section 13 (a) shall come into force after that date, but not more than two years thereafter.".

YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Social Welfare

EFRAYIM KATZIR President of the State (No. 56)

* 5737׳ — SAVINGS LOAN LAW, 1977

1. In this Law— Definitions. (1) every term has the same meaning as in the Income Tax Ordinance1) (hereinafter referred to as "the Ordinance"), save as otherwise provided in this Law; (2) "employer" means every person who pays or is responsible for the payment of work income; (3) "work income" does not include — (a) payments made to an employee to cover his expenses for keeping a vehicle nor the value of the use of a vehicle placed at the disposal of an employee; (¿0 payments made to an employee to cover his expenses for keeping a telephone at his place of residence; (c) work income within the meaning of section 3 (i) of the Ordinance; (4) "the determining date" means the 20th Tishri, 5741 (30th September, 1980).

2. (a) An employer shall in the tax year 1977 make a savings Imposition and loan to the State at the rate of 4.75 per cent of the aggregate amount rate 0 oan' of work income paid by him in the tax year 1977 (such loan hereinafter referred to as "the loan"). (b) Notwithstanding anything provided in any law, the loan shall also be made by a body of persons which for the purpose of the payment of taxes, fees and other compulsory charges has the same status as the State.

3. Local authorities and public institutions shall be exempt from Exemptions, the loan. For this purpose, "public institutions" means religious, cultural, educational, scientific, health, welfare and sports institutions, and institutions serving some other public purpose, which are not intended to produce a profit and which the Minister of Finance has designated with the approval of the Finance Committee of the Knesset.

* Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 855 of the 5th Nisan, 5737 (24th March, 1977), p. 138; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1282 of 5737, p. 114. 1J Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120 — NV vol. I, p. 145; Sefer Ha-Chukkim of 5736, p. 164 — LSI vol. XXX, p. 153.

163 Payment of loan. 4. An employer shall pay the loan to the Assessing Officer at the prescribed date and shall at the same date submit to him a return as prescribed.

Assessment 5. Where an employer has not paid the loan or has not delivered

to loan. a return t0 ^ Assessing Officer or has delivered a return but the Assessing Officer has reasonable grounds for believing that it is not correct, the Assessing Officer may assess the amount of the loan to the best of his judgment, and an assessment under this section shall be treated as an assessment under section 167 of the Ordinance.

Loan to bear 6. (a) The loan shall bear interest at the rate of 3 per cent

interest. pgr amum from the 23rrj Adar Bet, 5738 (1st April, 1978). (b) The interest shall be exempt from income tax.

Loan linked 7. (a) In this section — to index. ^ "cost-of-living index" has the same meaning as in the Defence Loan Law, 5717 —1956J); (2) "basic index" means the cost-of-living index to be published for December, 1977; (3) "new index" means the cost-of-living index to be pub• lished for the month of June last preceding the date of repayment. (b) The principal of the loan shall be linked to the cost-of-living index. If at the time of repayment of any part of the loan it appears that the new index exceeds the basic index, the loan shall be repaid increased in the proportion of 90 per cent of the excess of the new index over the basic index.

Loan 8. (a) In respect of any amount of loan paid by an employer certificates by the determining date, certificates registered in his name shall be issued to him by the 26th Adar Bet, 5741 (1st April, 1981). ,(b) The certificates shall only be for. amounts of pounds divisible without remainder by five. (c) The Minister of Finance shall, with the approval of the Finance Committee of the Knesset, prescribe by regulations the terms and conditions applicable to the,loan certificates, including their issue and redemption and balances of an amount less than the lowest denomination of the loan certificates.

!) Sefer Ha-Chukkim of 5717, p. 8; LSI vol. XI, p. 5.

164 9. (a) The loan certificates shall not be negotiable and shall not Transfer be transferable except by operation of law. and charee• (b) The loan certificates or the right to receive them shall not be chargeable except as security — (1) for a State-guaranteed obligation of the holder of the certificates or the person entitled to receive them or, in favour of the State, for' its guarantee; (2) for the repayment of a loan made to the holder of the certificates, or to the person entitled to receive them, in the framework of a directed credit, within the meaning of section 8 of the Bank of Israel Directions (Liquid Assets), 5731 — 1971 1). if the Minister of Agriculture, the Minister of Commerce and Industry or the Minister of Tourism or a person empowered by them or by one of them has approved the charge. (c) (1) Where loan certificates or the right to receive them have or has been charged, the person in whose favour the charge was made shall be entitled to recoup himself out of the certificates before any other creditor, even if the con• ditions of section 4 of the Pledges Law, 5727 — 1967 2), are not fulfilled. (2) The Bank of Israel shall be given notice of loan certificates which or the right to receive which have or has been charged. (3) The Minister of Finance shall prescribe by regulations provisions as to notice to the Bank of Israel and the registrations to be effected by it and also to whom loan certificates which or the right to receive which have or has been charged, or the redemption moneys, shall be delivered.

10. (a) Fifty per cent of the aggregate amount of the loan shall Repayment be repaid in three equal consecutive annual instalments on the of 1oan' 1st August of each year, beginning in 1981, and the remainder in three equal consecutive annual instalments on the 1st August of each year, beginning in 1986, all with the addition of interest as provided in section 6. (b) Notwithstanding the provisions of subsection (a), a loan of an amount not exceeding 1,000 pounds made by an employer in respect of a particular business shall be repaid in full on the 1st Av, 5741 (1st August, 1981).

1) Kovelz Ha-Takkanot of 5731, p. 690. 2) Sefer Ha-Chukkim of 5727, p. 48; LSI vol. XXI, p. 44.

165 Loan not 11. (a) The Minister of Finance may, with the approval of the made by determining Finance Committee of the Knesset, prescribe by regulations how date. any loan not made by the determining date .shall be dealt with. Such regulations may also prescribe that the loan shall be con• verted into a tax or that it shall not be collected. (b) Regulations under subsection (a) may be general or in respect of particular classes of persons liable to the loan or according to the amount of the loan.

Application of 12. Save as otherwise provided in this Law, the provisions of the provisions of Ordinance. Ordinance shall apply to the loan as if it were a part of the tax.

Implementation 13. The Minister of Finance is charged with the implementation and regulations. of this Law and may make regulations as to any matter relating to such implementation.

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State (No. 57)

DEFENCE STAMP (AMENDMENT AND EXTENSION OF PERIOD OF OPERATION) (AMENDMENT No. 13) LAW, 5737— 1977*

1. In the Defence Stamp (Amendment and Extension of Period Amendment of of Operation) Law, 5718 — 1958 1). the expression "the 12th Nisan, f*!™? 12. *' 5737 (31st March, 1977)" in sections 6, 9, 10 and 12 shall be replaced by the expression "the 22nd Adar Bet, 5738 (31st March, 1978)".

2. The Minister of Finance may, with the approval of the Finance Power to reduce Committee of the Knesset, reduce the rate of defence stamp impost on an invoice for domestic consumption of electricity if the tariff for such consumption has increased.

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 855 of the 5th Nisan, 5737 (24th March, 1977), p. 140; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1281 of 5737, p. 112. 1 Sefer Ha-Chukkim of 5718, p. 131 — LSI vol. XII, p. 152; Sefer Ha- Chukkim of 5736, p. 157 — LSI vol. XXX, p. 156.

167 (No. 58)

FALLEN SOLDIERS' FAMILIES (PENSIONS AND REHABILITATION) (AMENDMENT No. 12) LAW, 5737 — 1977 *

Amendment of 1. In section 1 of the Fallen Soldiers' Families (Pensions and section 1. Rehabilitation) Law, 5710 —1950J) (hereinafter referred to as "the principal Law"), the following paragraph shall be added after para• graph (a) of the definition of "relative", in respect of a soldier fallen in battle: "(al) the person who was the husband of the fallen soldier on the day of her death, including a man who lived with her before her death and on the day of her death was commonly known as her husband, so long as he is not married to another person (hereinafter: "widower");".

Addition of 2. The following section shall be inserted after section 1 of section 1A. the principal Law:

"Application 1A. Everything provided in this Law in respect of Law to widower. of the widow of a fallen soldier shall also apply, mutatis mutandis, to the widower of a fallen soldier.".

Amendment of 3. In section 9 (1) of the principal Law, the words "outside his section 9. mother's house" shall be replaced by the words "outside his parent's house".

Amendment of 4. Section 12A (c) shall be replaced by the following subsection: "(c) If the new marriage is dissolved by the death of the spouse

* Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 856 of the 6th Nisan, 5737 (25th March, 1977), p. 142; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1284 of 5737, p. 136. !) Sefer Ha-Chukkim of 5710, p. 162 — LSI vol. IV, p. 115; Sefer Ha- Chukkim of 5712, p. 187 — LSI vol. VI, p. 98; Sefer Ha-Chukkim of 5718, p. 172 — LSI vol. XII, p. 189; Sefer Ha-Chukkim of 5723, p. 36 — LSI vol. XVII, p. 45; Sefer Ha-Chukkim of 5725, p. 295 — LSI vol. XIX, p. 323; Sefer Ha-Chukkim of 5727, p. 140 — LSI vol. XXI, p. 140; Sefer Ha-Chukkim of 5728, p. 254 — LSI vol. XXII, p. 289; Sefer Ha-Chukkim of 5731, p. 126 — LSI vol. XXV, p. 121; Sefer Ha-Chukkim of 5733, pp. 66 and 252; LSI vol. XXVII, pp. 63 and 289; Sefer Ha-Chukkim of 5735, p. 10 — LSI vol. XXIX, p, 12; Sefer Ha-Chukkim of 5736, p. 118 — LSI vol. XXX, p. 119.

168 within five years of the day on which it was contracted, or at any time as a result of proceedings begun within five years from the day on which it was contracted, the woman or the man, as the case may be, shall from the day of the dissolution of the marriage be paid the pension which would be payable to her or him at the time had she or he not remarried, and she or he shall not have to return the marriage grant paid to her or him. Where an orphan or orphans is or are maintained by her or him upon the expiration of the five-year period, the period shall be extended to seven years.".

5. In the Victims of Hostile Action (Pensions) Law, 5730— 19701J — Amendment of (1) in section 1, paragraph (3) of the definition of "family Hostile Action member" is hereby repealed; (Pensions) (2) in section 7, the closing passage, beginning with the words Law' "For the purposes of this section", shall be deleted; (3) in section 7C, the words "or a widow" shall be replaced by the words "a widow or a widower".

6. This Law shall, in respect of the period after its coming Commencement, into force, apply also to the widower of a woman who died before its coming into force unless in consequence of the death and by right of the service of the deceased or in consequence of her injury by hostile action he or other family members of the deceased has or have received advantages out of the Treasury otherwise than by way of periodical payments, and the right of a widower as aforesaid to make application under section 23 of the principal Law shall suffer prescription upon the expiration of one year from the date of the coming into force of this Law.

YITZCHAK RABIN SHIMON PERES Prime Minister Minister of Defence

EFRAYIM KATZIR President of the State

!) Sefer Ha-Chukkim of 5730, p. 126 — LSI vol. XXIV, p. 131; Sefer Ha- Chukkim of 5733, p. 79 — LSI vol. XXVII, p. 74.

169 (No. 59)

SMALL CLAIMS (JURISDICTION) (AMENDMENT) LAW, 5737 — 1977 *

Amendment of 1. In section 2 (a) of the Small Claims (Jurisdiction) Law, 5736! — section 2. 19761). the words "filed by an individual" shall be inserted after the words "a civil claim" and the words "based on a right which has been transferred or assigned and are not" shall be inserted after the words "are not".

Amendment of 2. In section 6 of the said Law, the opening passage, up to and section 6 including the word "but", and the closing passage, beginning with the words "where a party is so represented", shall be deleted.

YITZCHAK RABIN HAIM J. ZADOK Prime Minister Minister of Justice

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 856 of the 6th Nisan, 5737 (25th March, 1977), p. 143; the Bill and an Explanatory Note were published in Hatzdot Chok No. 1296 of 5737, p. 206. i) Sefer Ha-Chukkim of 5736, p. 247; LSI vol. XXX, p. 240.

170 (No. 60)

INVALIDS (WAR AGAINST.THE NAZIS) (AMENDMENT No. 8) LAW, 5737 — 1977*

1. In section 1 of the Invalids (War against the Nazis) Law, Amendment of section 1 5714—1954 *) (hereinafter referred to as "the principal Law") — (1) in the definition of "the determining wage", the expression "Yod" shall be replaced by the expression "Yod Bet", the expression "86 p.ct." shall be replaced by the expression "94 p.ct." and the expression "78 p.ct." shall be replaced by the expression "81 p.ct."; (2) in the definition of "the determining grade", the expression "Tet" shall be replaced by the expression "Yod".

2. In section 4B of the principal Law — Amendment of (1) in subsection (c) (1), the expression "50 p.ct." shall be replaced by the expression "55 p.ct."; (2) in subsection (c) (2), the expression "70 per cent" shall be replaced by the expression 77 p.ct."; (3) in subsection (c) (3), the expression "90 per cent" shall be replaced by the expression "100 p.ct.".

3. In section 4C (a) of the principal Law, the closing passage, Amendment of section 4C/ beginning with the words "at the rate of the total amount of the current salary", shall be replaced by the words "at the following rates: (1) if he has an immediate relative who is a child, 97 per cent of the total amount of the current salary of a State employee whose salary grade is "Tet Zayin" of the uniform grading;

* Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 856 of the 6th Nisan, 5737 (25th March, 1977), p. 143; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1261 of 5737, p. 2. x) Sefer Ha-Chukkim of 5714, p. 76 — LSI vol. VIII, p. 63; Sefer Ha- Chukkim of 5717, p. 99 — LSI vol. XI, p. 105; Sefer Ha-Chukkim of 5721, p. 162 — LSI vol. XV, p. 174; Sefer Ha-Chukkim of 5725, p. 299 — LSI vol. XIX, p. 318; Sefer Ha-Chukkim of 5729, p. 152 — LSI vol. XXIII, p. 166; Sefer Ha-Chukkim of 5732, p. 6 — LSI vol. XXVI, p. 5; Sefer Ha-Chukkim of 5733, p. 160 — LSI vol. XXVfl, p. 172; Sefer Ha-Chukkim of 5735, p. 26 — LSI vol. XXIX, p. 32.

171 (2) if he has no immediate relative who is a child, 93 per cent of the total amount of the aforesaid salary".

Amendment of 4. In section 4D of the principal Law —

section 4D. ^ in subsection (a) ^ the words «50 p ct of the determining grade" shall be replaced by the words "60 p.ct. of the total amount of the current salary of a State employee whose salary grade is "Yod Gimel" of the uniform grading"; (2) in subsection (a) (2), the expression "70 p.ct. of the determining grade" shall be replaced by the words "77 p.ct. of the said salary"; (3) in subsection (a) (3), the expression "90 p.ct. of the deter• mining salary" shall be replaced by the words "100 p.ct. of the said salary".

Repeal of 5. Section 5 of the principal Law is hereby repealed, section 5.

Replacement of 6. Section 13A of the principal Law shall be replaced by the

section 13A. £ „ following section:

;,Pension after 13A. (a) Where an invalid dies who immediately

invalid's death. befofe his Qr her dfJath wag entitled t0 a pensjon under section 4A or 4B or under regulations pursuant to section 24 (b) (1), the pension shall continue to be paid to his or her spouse at the rate then payable, subject to variations which may occur in the cost-of-living allowance, until the expiration of thirty-six months from the end of the. month in which the death occurred. (b) Where an invalid dies who immediately before his or her death was entitled to a pension under section 4C or 4D for a continuous period of not less than three months, his or her spouse shall, so long as she or he does not remarry, be paid a pension at the rate of the total amount of the current salary of a State employee whose salary grade is "Yod Gimel" of the uniform grading, less the amount of her or his income from any other source. (c) Where there is no spouse, the pension shall continue to be paid under this section to

172 such immediate relative as the invalid has directed under section 20 or, in the absence of such a direction, to such immediate relative as the com• petent authority directs until the expiration of twelve months from the end of the month in which the death occurred. (d) Where a person entitled to a pension under this section leaves Israel for a period exceeding six months, he shall not be paid the pension from the date of his departure unless the competent authority otherwise prescribes for a special reason. (e) The provisions of sections 4E, 9, 14, 20, 23 and 28 shall apply mutatis mutandis to a pension payable under this section.".

7. (a) Sections 1 to 4 of this Law and section 13A (b) of the Commencement principal Law as enacted by this Law shall have effect from the 9th transitional Nisan, 5734 (1st April, 1974): provisions. Provided that in respect of the period between the said day and the 1st Nisan, 5736 (1st April, 1976) — (1) section 1 shall be read as if — (a) paragraph (1) were replaced by the following para• graph: "(1) in the definition of "the determining wage", the expression "86 p.ct." shall be replaced by the ex• pression "95 p.ct." and the expression "78 p.ct." shall be replaced by the expression "86 p.ct.";"; (¿0 paragraph (2) had not been enacted; (2) section 3 shall be deemed replaced by the following section: "3. In section 4C of the principal Law, the expression "Yod Dalet" shall be replaced by the expression "Tet Vav"."; (3) section 4 shall be read as if — (a) paragraph (1) were replaced by the following paragraph: "(1) in subsection (a) (1), the expression "50 p.ct." shall be replaced by the expression "55 p.ct.";"; (b) the words "of the aforesaid salary" in paragraphs (2) and (3) were replaced by the words "of the deter• mining grade".

173 (b) Section 5 shall have effect from the 22nd Tammuz, 5735 (1st July, 1975). (c) A relative of an invalid who before the coming into force of this Law received a pension under section 13A of the principal Law shall not by reason only of the provisions of section 6 be required to return any amounts.

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State (No. 61)

ADVANCE PAYMENT LAW, 5737 — 1977 *

1. The Government is hereby authorised to accept from the Bank Advance of Israel (hereinafter referred to as "the Bank") and the Bank is Gwmmm hereby authorised to make to the Government an advance payment from Bank of an amount not exceeding 2,700,000,000 pounds. o£ IsracL

2. The conditions, and dates of repayment, of the advance Conditions of sdvsnce payment shall be prescribed by agreement between the Minister payment, of Finance and the Governor of the Bank of Israel with the approval of the Finance Committee of the Knesset.

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State

Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 856 of the 6th Nisan, 5737) (25th March, 1977), p. 145; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1258 of 5736, p. 367. (No. 62)

DEVELOPMENT LOAN (AMENDMENT No. 17) LAW, 5737— 1977 *

Replacement of 1. In the Development Loan Law, 5720 —19601) (hereinafter section 5. referred to as "the principal Law"), section 5 shall be replaced by the following section:

"Regulations 5. The Minister of Finance shall, with the approval as to types of series. of the Finance Committee of the Knesset, prescribe by regulations types of bond series issued under this Law. Regulations as aforesaid shall prescribe the following matters in respect of each type: (1) the rate, and periods of payment, of the interest payable on the bonds; (2) the period for which the bonds shall be issued and the modes of their redemption; (3) the face-value of the bonds; (4) the text of the bonds.".

Amendment of 2. Section 6 of the principal Law shall be re-marked as section 6(a),

or 0j eacn tVpg Q£ serjes» snan be inserted after the״ section 6. ^g wor(js words "of each series" appearing therein and the following subsection shall be added thereafter: "(b) The Minister of Finance, or a person empowered by him in that behalf, shall determine the following matters in respect of each series: (1) the type; (2) the date of issue; (3) the aggregate face-value; (4) the dates of payment of interest; (5) the dates of redemption of the bonds. Notice of a determination as aforesaid shall be published in Reshumot within forty-five days from the date of issue of the series.".

« Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 856 of the 6th Nisan, 5737 (25th March, 1977), p. 146; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1283 of 5737, p. 118. !) Sefer Ha-Chukkim of 5720, p. 47 — LSI vol. XIV, p, 39; Sefer Ha- Chukkim of 5737, p. 18 — supra, p. 20.

176 3. In section 13 of the principal Law, the words "in respect of Amendment of a series which has already been issued" shall be added at the end. secbon 13-

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State

177 (No. 63)

ESTATE DUTY (AMENDMENT No. 7) LAW, 5737 —1977

Amendment of 1. In section 2B (3) of the Estate Duty Law, 5709 —1949 J) section 2B. (hereinafter referred to as "the principal Law"), the figure "60,000" shall be replaced by the figure "95,000".

Amendment of 2. In section 2C (a) of the principal Law — section 2C. (1) in paragraph (1), the figure "100,000" shall be replaced by the figure "160,000"; (2) in paragraph (2) (a), the figure "60,000" shall wherever occurring be replaced by the figure "95,000';; (3) in paragraph 2 (b), the figure "40,000" shall be replaced by the figure "65,000"; (4) in paragraph 2 (c), the figures "60,000" and "80,500" shall be respectively replaced by the figures "95,000" and "130,000"; (5) in paragraph (3), the figures "20,000" and "40,000" shall be respectively replaced by the figures "30,000" and "65,000".

Replacement of 3. Section 2D of the principal Law shall be replaced by the section 2D...... following section:

"Rates of 2D. The rates of estate duty shall be as follows: estate duty. On any part of the first 150,000pounds- 5p.ct on any part of the next 150,000 pounds - 10 p.ct. on any part of the next 150,000pounds-15 p.ct. on any part of the next 200,000 pounds - 20 p.ct. on any part of the next 200,000 pounds - 25 p.ct. on any part of the next 200,000 pounds - 30 p.ct. on any part of the next 200,000 pounds - 35 p.ct. on any part of the next 500,000 pounds - 40 p.ct.

* Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 856 of the 6th Nisan, 5737 (25th March, 1977), p. 147; the Bill and an Explanatory Note were published in Hatzdot Chok No. 1298 of 5737, p. 224. i) Sefer Ha-Chukkim of 5709, p. 187 — LSI vol. Ill, p. 95; Sefer Ha- Chukkim of 5716, p. 45 — LSI vol. X, p. 40; Sefer Ha-Chukkim of 5717, p. 143 — LSI vol. XI, p. 152; Sefer Ha-Chukkim of 5724, p. 179 — LSI vol. XVIII, p. 179; Sefer Ha-Chukkim of 5729, p. 190; LSI vol. XXIII, p. 206; Sefer Ha-Chukkim of 5735, p. 232 — LSI vol. XXIX, p. 310; Sefer Ha-Chukkim of 5736, p. 79 — LSI vol. XXX, p. 84.

178 on any part of the next 500,000 pounds - 45 p.ct. on any part of the next 1,000,000 pounds - 50 p.ct. on any part of the next 1,000,000 pounds - 55 p.ct. on any further amount - 60 p.ct.".

4. In section 5A of the principal Law, the figures "450,000" and Amendment of ־shall be respectively replaced by the figures "720,000" section 5A "׳ "150,000 and "240,000".

5. In section 6 (5) of the principal Law, the figure "15,000" shall Amendment of 6־ be replaced by the figure "75,000". section

6. In section 10B of the principal Law, the figure "25,000" shall Amendment of 10־ be replaced by the figure "40,000". sectl0n

7. The following chapter shall be inserted after Chapter Six of Addition of the principal Law: six^'A".

' "Chapter Six "A": Power to Vary Amounts

Power to vary 10B. The Minister of Finance may, with the approval dedurtionfand of the F'nance Committee of the Knesset, vary the brackets. amounts specified in sections 2B, 2C, 2D, 5A, 6 and 10.".

8. This Law shall apply to the estate property of a person who Application, died after the date of its adoption by the Knesset.

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance

EFRAYIM KATZIR .President of the State

179 (No. 64)

ACQUISITION FOR PUBLIC PURPOSES (AMENDMENT OF PROVISIONS) (AMENDMENT No. 2) LAW, 5737 — 1977 *

Addition of 1. Section 8 of the Acquisition for Public Purposes (Amendment

sections 8 q{ Provisions) Law> 5724— 1964 *), shall be re-marked as section 13 and the following sections shall be inserted before it:

"Linkage of 8. (a) Where any rights in land are acquired by compensation. virtue of a particular Acquisition Law, other than the Roads and Railways (Defence and Development) Ordinance, 1943 2), and the Roads (Width and ) Ordinance8), the owner of the rights shall be paid compensation in the amount of the value of the rights, linked to the consumer price index, with the addition of unlinked interest at the rate of 4 per cent per annum on the value of the rights only, as follows: (1) interest shall be calculated from the date of publication of the notice of acquisi­ tion (hereinafter referred to as "the notice") in Reshumot until the date of actual pay­ ment or the deposit of the amount to the credit of the holder of the rights with the Postal Bank; (2) linkage shall be calculated in accord­ ance with the excess of the consumer price index last published before the payment or deposit of the compensation over the index published for the month in which the notice was published. (b) Notice of the deposit of an amount to his credit with the Postal Bank shall be sent to the owner of the rights by the acquiring authority by registered post.

• Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 856 of the 6th Nisan, 5737 (25th March, 1977), p. 148; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1210 of 5736, p. 49. i) Sefer Ha-Chukkim of 5724, p. 122; LSI vol. XVIII, p. 116. .(P.G. of 1943, Suppl. I, p. 55 (English Edition (־ s) Laws of Palestine vol. II, p. 1307 (English Edition).

180 (c) Where any rights in land are acquired by virtue of the Planning and Building Law, 5725 — 1965 *) before the 13th Nisan, 5737 (1st April, 1977), the provisions of subsection (a) shall apply with the following modifications: (1) the rate of linkage shall be 70 per cent; (2) only an increase of the consumer price index which occurred after the month of April, 1974, shall be taken into account in calculating the linkage; (3) the linkage differentials paid in con• sequence of one acquisition shall not exceed 500,000 pounds. (d) Where any rights in land are acquired by virtue of an authorisation under section 22 (2) of the Land (Acquisition for Public Purposes) Ordi• nance, 1943 2), only an increase of the consumer price index which occurred after the month of April, 1977, shall be taken into account for the purposes of calculating the linkage.

Limitation of 9. The interest, and linkage differentials, referred period of linkage. to in section 8 shall be calculated until the 11th Nisan, 5740 (31st March, 1980) or until the expira• tion of ten years from the date of publication of the notice, whichever is the' later, and thereafter unlinked interest at the rate of 6 per cent per annum shall be paid on the aggregate amount of the compensation and the linkage differentials and interest accumulated by the aforesaid date.

Restriction. 10. The provisions of section 8 shall not apply in respect of a period during which the owner of the acquired rights withholds the surrender of possession of the land.

Taxes and 11. (a) Compensation under section 8 shall only compulsory charges. be paid after the taxes, rates and other compulsory charges due on the acquired rights until the date

0 Sefer Ha-Chukkim of 5725, p. 307; LSI vol. XIX, p 330. 2) P.G. of 1943, Suppl. I, p. 44 (English Edition). of publication of the notice, as well as the land appreciation tax due in respect of the acquisition, have been paid. (b) Where the owner of the rights does not make the said payments, the acquirer of the rights may make them out of the compensation payable by him.

Power to vary 12. The Minister of Finance may, with the ap• rates of interest and linkage. proval of the Finance Committee of the Knesset, vary the rates of interest and linkage referred to in section 8.".

Inapplicability. 2. Where compensation in respect of the acquisition of rights in any land was paid to the owner of such rights before the coming into force of this Law, the provisions of this Law shall only apply to the amount which was due to him immediately before the coming into force thereof.

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State

182 (No. 65)

NATIONAL INSURANCE (AMENDMENT No. 28) LAW, 5737 —1977 *

1. In section 1 of the National Insurance Law (Consolidated Amendment of section 1 Version), 5728 —1968x) (hereinafter referred to as "the principal Law"), in the definition of "the average wage", the words "six months" in paragraph (1) shall be replaced by the words "three months".

LaW(>— Amendment of׳ In section 12 (a) of the principal .2 (1) in paragraph (1), the words "the amount specified in sectl0n Table II" shall be replaced by the words "the amount resulting from Table II"; (2) paragraph (2) shall be replaced by the following paragraph: "(2) notwithstanding the provision of paragraph (1), if com­ pensation becomes due after the commencement of the financial year, the amounts resulting from Table II shall, from the date of commencement of the compensation until the end of the financial year, be increased at a rate equal to the rate of compensation.".

The following shall be inserted after section 90A of the principal Addition of 6 r Chapter = Three "B".

"Chapter Three "B": Accident Victims Insurance

Definitions. 90B. In this chapter — "insured person" means an Israel resident who has completed the age of eighteen years and who has not yet completed the age of sixty-five years in the case of a man or sixty years in the case of a woman;

"accident" means a sudden, unforeseen occur­ rence resulting from external factors — accord-

• Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 856 of the 6th Nisan, 5737 (25th March, 1977), p. 150; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1294 of 5737, p. 200. !) Sefer Ha-Chukkim of 5728, p. 108; LSI vol. XXH, p. 114.

183 ing to rules and criteria prescribed by regula• tions with the approval of the Labour Affairs Committee of the Knesset — which causes loss of a functional capacity;

"loss of functional capacity" means the loss of a functional capacity according to rules and criteria prescribed by regulations with the ap• proval of the Labour Affairs Committee of the Knesset for all, or particular classes of, insured persons.

Right and 90C. An insured person to whom an accident occurs extent thereof. either in or outside Israel shall be entitled to acci• dent pay for a period in which he is in Israel and is deprived of the functional capacity, if he does not actually engage in any work.

Accident pay. 90D. Accident pay shall be paid for a period not exceeding ninety consecutive days beginning with the day of the accident: Provided' that it shall not in any one financial year be paid for more than ninety days.

Restriction. 90E. (a) Accident pay shall not be paid for the day of the accident and the first two subsequent days on which the insured person, being an employee or a self-employed person, is deprived of the func• tional capacity as a result of the accident, unless he is deprived of the functional capacity as aforesaid for not less than twelve days in addition to the day of the accident. (b) Accident pay shall not be paid for the day of the accident and the first fourteen subsequent days on which the insured person, being neither an employee nor a self-employed person, is deprived of the functional capacity as a result of the accident.

Rate of 90F. The daily rate of accident pay shall be — accident pay. (1) in the case of a person who on the day of the accident is an employee or a self-employed person —equal to the daily injury benefit which

184 would be payable to him under Chapter Three if he had sustained an employment injury, but not less than the rate prescribed in para­ graph (2); (2) in the case of any other insured person — 25 per cent of the average wage, divided by thirty.

Double 90G. An insured person who, in respect of a period

benefits. Qj jncapaCjty for work: or functional incapacity, is entitled, for health reasons, to a payment under any enactment, other than the Civil Wrongs Ordinance (New Version)1), or under a collective agreement, within the meaning of section 127 A A A, or any other collective agreement or the rules of a benefit fund or a contract of employment or the rules of an insurance or pension fund shall not be entitled to a benefit under this chapter for the period for which he is entitled to a payment as aforesaid.".

4. In section 157 of the principal Law, the following subsection Amendment of shall be inserted after subsection (d3): section 157. "(d4) Accident victims insurance shall be paid for a person insured under Chapter Three "B".".

5.5. In section 161 of the principal Law, the expression "(c) or (dl)" Amendment of shall be replaced by the expression "(c), (dl) or (d4)". section 161.

6. In section 167 (a) of the principal Law, the expression "(dl) Amendment of 167־ shall be replaced by the expression "(dl), (d2) or (d4)". section ׳'(or (d2

7. In section 169 of the principal Law — Amendment of 169־ in subsection (c), the expression "(dl) and (d2) shall be section (1) replaced by the expression "(dl), (d2) and (d4)"; (2) the following subsection shall be added after subsection (g): "(h) Any person insured under Chapter Three "B" who is a housewife or a widow as referred to in section 9 shall not pay contributions under section 157 (d4).".

8. Table II of the principal Law shall be replaced by the following Replacement of table: Table IL

Dinei Medinat Yisrael (Nusach Chadash) No. 10, p. 266; NV vol. II, p. 5.

185 "Table II (Section 12) Maximum Income

Item Number of Dependants Maximum Annual Income

1 None An amount equal to 50 p.ct. of the average wage, , multiplied by twelve One An amount equal to 67 p.ct. of the average wage, multiplied by twelve

More than one An amount equal to 6 p.ct. of the average wage, multiplied by twelve, in respect of each dependant in excess of one.

Amendment of 9. In Table X of the principal Law, the following item shall be Table X. added after Item 4:

Item Branch of Per Cent Deduction from Wage Insurance of Income for the Purposes of or Wage Section 161 (a) Accident victims 0.2 0.1"

Amendment of 10. In section 11 of the Sick Pay Law, 5736 —19761). the words Sick Pay Law. "a payment for invalidity" shall be replaced by the following words "a payment of invalidity, a benefit under Chapter Three "B" of the National Insurance Law (Consolidated Version), 5725—1968".

Commencement 11. (a) Sections 1, 2 and 8 shall apply to the financial year 1977/78 and temporary provisions. and any subsequent period. (b) The other sections of this Law shall come into force on the 29th Elul, 5738 (1st October, 1978): Provided that sections 4 to 7 and 9 shall, in respect of an insured person other than an employee, come into force on the 23rd Adar Bet, 5738 (1st April, 1978).

0 Sefer Ha-Chukkim of 5736, p. 206; LSI vol. XXX, p. 202.

186 (c) The Minister of Labour may, in respect of the financial year 1978/79, for an insured person other than an employee, prescribe by regulations contributions under section 157 (d4) different from those indicated in Item 5 of Table X, provided that the total contributions for that financial year shall not exceed the contributions the insured person would have to pay but for the provision of the closing passage of subsection (b).

YiTZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour

EFRAYIM KATZIR President of the State (No. 66)

NATIONAL INSURANCE (AMENDMENT No. 29) LAW, 5737 — 1977.'*

Amendment of 1. In section 198E of the National Insurance Law (Consolidated Version), 5728 —1968*), in the definition of "volunteer", para• graph (1) shall be replaced by the following paragraph: "(1) a person who voluntarily, without remuneration, acts for the sake of another or others upon referral by a Government Ministry, the Institute, a local authority, the World Zionist Organisation, the or some other public body approved by the Minister of Labour in accordance with rules, criteria, conditions and restrictions prescribed by regula• tions with the approval of the Labour Affairs Committee of the Knesset, provided that volunteering outside Israel shall only recognised in categories of cases approved by the Minister of Labour by order; for this purpose, "referral" means referral in advance for purposes of national or public usefulness pre• scribed by regulations, with the approval of the Labour Affairs Committee of the Knesset, subject to conditions and restrictions prescribed as aforesaid;".

YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 856 of the 6th Nisan, 5737 (25th March, 1977), p. 152; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1298 of 5737, p. 223. ') Sefer Ha-Chukkim of 5728, p. 108 — LSI vol. XXII, p. 114; Sefer Ha- Chukkim of 5729, pp. 76 and 206 — LSI vol. XXIII, pp. 84 and 221; Sefer Ha-Chukkim of 5730, pp. 58, 130 and 134 —LSI vol. XXIV, pp.-51, 133 and 139; Sefer Ha-Chukkim of 5731, p. 128 — LSI vol. XXV, p. 124; Sefer Ha-Chukkim of 5732, pp. 78, 86 and 119 — LSI vol. XXVI, pp. 86, 102 and 133; Sefer Ha-Chukkim of 5733, pp. 126, 141, 142, 212 and 260 — LSI vol. XXVII, pp. 128, 152, 153, 233 and 302; Sefer Ha-Chukkim of 5734, p. 74 — LSI vol. XXVIII, p. 78; Sefer Ha-Chukkim of 5735, pp. 102, 152, 238 and 246; LSI vol. XXIX, pp. 129, 189, 318 and 325; Sefer Ha-Chukkim of 5736, pp. 102, 167, 268, 275 and 276 — LSI vol. XXX, pp. 109, 165, 262, 270 and 271; Sefer Ha-Chukkim of 5737, pp. 88, 122, 123 and 150 — supra, p. 183.

188 (No. 67)

SEVERANCE PAY (AMENDMENT No, 10) LAW, 5737 — 1977 *

1. In section 11 of the Severance Pay Law, 5723 — 1963 *), the Amendment folowing subsection shall be inserted after subsection (d): "(e) Where a female employee resigns after reaching the age of sixty years or a male employee after reaching the age of sixty-five years, the resignation shall for the purposes of this Law be regarded as dismissal; but every amount paid to the employee out of a benefit fund, within the meaning of section 47 of the Income Tax Ordinance2), in consequence of payments to the fund by the employer and intended to be used as or serve in lieu of severance pay may, even where the requirements of section 14 or 20 are not fulfilled, be credited against the severance pay due by virtue of this subsection.". f

YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour

EFRAYIM KATZIR President of the State

• Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 856 of the 6th Nisan, 5737 (25th March, 1977), p. 153; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1294 of 5737, p. 202. !) Sefer Ha-Chukkim of 5723, p. 126 — LSI vol. XVII, p. 161; Sefer Ha- Chukkim of 5724, p. 167 — LSI vol. XVIII, p. 166; Sefer Ha-Chukkim of 5725, p. 215 — LSI vol. XIX, p. 225; Sefer Ha-Chukkim of 5733, pp. 222 and 258 — LSI vol. XXVII, pp. 248 and 299; Sefer Ha-Chukkim of 5736, p. 96 — LSI vol. XXX, p. 101; Sefer Ha-Chukkim of 5737, .101׳ .pp. 27, 27, 87 and 115; supra, pp 2) Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120; NV vol. I, p. 145. 131, 132, 99 and 136. (No. 68)

VICTIMS OF HOSTILE ACTION (PENSIONS) (AMENDMENT No. 3) LAW, 5733 —1977 *

Addition of 1. In the Victims of Hostile Action (Pensions) Law, 5730 — 1970J), sections 1 Q>\ t0 19D the following sections shall be inserted after section 19:

"Persons injured 19A. (a) Notwithstanding the provisions of sec- 5708* anda5709. tion 19 (a)> Law> excePt section 2, shall apply to a person who was injured by hostile action of enemy forces in the period from the 5th Iyar, 5708 (14th May, 1948) to the 25th Shevat, 5709 (24th February, 1949), if he meets the following two requirements: (1) he was injured in a place which at the time was Israeli territory or under the con• trol of the Defence Army ,of Israel or .of a unit in respect of which the Minister of Defence, under paragraph (2) of the defini• tion of "military service" in section 1 of the Invalids (Pensions and Rehabilitation) Law (Consolidated Version), 5719 — 1959 2), has declared that service therein shall be military service for the purposes of that Law, or in transit from one such place to another; (2) he resided and was present in Israel continuously from the date of the injury until the date of the coming into force of the Victims of Hostile Action (Pensions) (Amendment No. 3) Law, 5737— 1977; for this purpose, continuity shall be deemed not to have been broken by the injured person's staying outside Israel, consecutively

* Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 856 of the 6th Nisan, 5737 (25th March, 1977), p. 153; the Bill and an Explanatory Note were published in Hatzdot Chok No. 1295 of 5737, p. 203. *) Sefer Ha-Chukkim of 5730, p. 128 — LSI vol. XXIV, p. 131; Sefer Ha-Chukkim of 5733, pp. 79 and 253 — LSI vol. XXVII, pp. 74 and 291. *) Sefer Ha-Chukkim of 5719, p. 276 — LSI vol. XIII, p. 315.

190 or intermittently, for a period not exceeding four years, or even for a longer period for purposes of study or on a mission on behalf of the State or a public body in Israel. (b) For the purpose of this Law, an injury by hostile action of enemy forces shall be treated as an enemy-inflicted injury and a person who sustained an injury by hostile action as aforesaid shall be treated as a victim provided that he meets the requirements of the provisions of subsection (a).

Family members. 19B. Notwithstanding anything provided in this Law, the provisions thereof, except section 2, shall apply to a family member of a person to whom section 19A applies if the family member meets, mutatis mutandis, the requirements of the provisions of paragraph (2) of section 19A (a).

Restriction. 19C. (a) A person shall not be entitled to a pension under this Law if he has received any payment or other compensation, except medical treatment or medical rehabilitation, in respect of an injury referred to in section 19A from one of the following bodies: (1) the State; (2) the Jewish Agency for Israel; <3) the World Zionist Organisation; (4) the National Council (Vaad Leumi) of the Jewish Community in Eretz Israel; (5) a local authority. (b) A person who receives a weekly compen• sation under the Workmen's Compensation Ordi• nance, 1947in respect of an injury referred to in section 19A may choose between continued receipt of the said compensation and rights under this Law.

Claim for 19D. (a) A claim by virtue of section 19A or 19B pension. ^ gjgd nQt ^ter ^ expiration of i) P.G. of 1947, Suppl. I, p. 186 (English Edition).

191

( twelve months from the date of the coming into force of the Victims of Hostile Action (Pensions) (Amendment-No.'^) Law, 5737 — 1977. (b) A person who alleges that any injury was caused by hostile action of enemy forces and that invalidity or death resulted from such injury shall bear the onus of proof.".

Scope of 2. A pension under this Law shall be granted in respect of a application. period after the date of its coming into force. Any other right or advantage provided for by this Law shall be granted where the ground therefor arose after such date.

YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour

EFRAYIM KATZIR President of the State

192 (No. 69)

ISRAEL FILM ENCOURAGEMENT (AMENDMENT No. 2) LAW, 5737 —1977 *

1. In the Israel Film Encouragement Law, 5714— 19541J (here- Relocation and inafter referred to as "the principal Law"), section 5A shall be sect,on 5^. relocated after section 2 and be re-marked as section 2A and the words "and one of whom shall be a representative of the distributors" shall be added at the end of subsection (a) thereof.

2. In section 4A (a) of the principal Law, the expression "sec- Amendment of tion 5A" shall be replaced by the expression "section 2A". section

3. In section 5B of the principal Law— Amendment of (1) in paragraph (1), the words "and which he refuses to accept" shall be inserted after the words "delivered to him"; (2) paragraph (4) shall be replaced by the following paragraphs: "(4) an application under paragraph (1) or (2) may be made by the exhibitor, and the Objection Committee shall not hear it unless it is made within two weeks from the day on which the applicant should have exhibited the news- reel or short under the order but did not exhibit it; (5) the Objection Committee shall not decide upon an application under subsection (1) or (2) unless it has given every interested party, at his request, an opportunity to be heard before it.".

4. In section 10 of the principal Law, the words "the Implemen- Amendment of • ,section 10 tation Committee" shall be replaced by the words "the Competent Authority", and the words "The decision of the Competent Authority shall be open to objection before the Objection Committee" shall be added at the end.

5. In section 12, subsection (b) is hereby repealed, and the Amendment of 12־ mark "(a)" shall be deleted. section

* Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 856 of the 6th Nisan, 5737 (25th > March, 1977), p. 155; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1185 of 5735, p. 298. !) Sefer Ha-Chukkim of 5714, p. 143 — LSI vol. VIII, p. 118; Sefer Ha- Chukkim of 5733, p. 8 — LSI vol. XXVII, p. 8.

193 Amendment of 6. In section 14 of the principal Law, the words "the Implemen• section 14. tation Committee" shall be replaced by the words "the Competent Authority" and the words "The decision of the Competent Authority shall be open to objection before the Objection Committee" shall be added at the end.

Amendment of 7. In section 17 of the principal Law, the words "one thousand section 17. pounds" shall be replaced by the words "ten thousand pounds".

Repeal of 8. Section 28 of the principal Law is hereby repealed. section 28.

YITZCHAK RABIN HAIM BAR-LEV Prime Minister Minister of Commerce and Industry

EFRAYIM KATZIR President of the State (No. 70)

PSYCHOLOGISTS LAW, 5737— 1977 *

Chapter One: Interpretation

1. In this Law— Definition, "practice of psychology" means the professional practice, as an occupation, of diagnosing and evaluating matters and problems in the psychical, intellectual and behavioural spheres of humans, as well as any such treatment, rehabilitation, counselling and guidance in connection with such matters and problems as are generally practised by a psychologist;

"psychologist" means a person registered in the Register of Psychologists or the holder of a permit; "holder of permit" means a person to whom a temporary permit to practise psychology has been issued under this Law; "endangering illness" of a psychologist or an applicant for registration means any of the following: (1) a mental illness; (2) an illness likely to endanger the health of persons treated by him; (3) any illness or disability likely to incapacitate him absolutely, temporarily or partially for the practice of psychology; "Council" means the Psychologists' Council established under section 47; "Director" means the Director-General or Deputy Director- General of the Ministry of Health.

Chapter Two: 'Practice of Psychology

2. ' (a) No person shall practise psychology unless he,is.a psycho- Exclusivity logist or otherwise than in accordance with his registration or his of practice- permit and the conditions thereof under section 19.

* Passed by the Knesset on the 25th Adar, 5737 (15th March, 1977) and published in Sefer Ha-Chukkim No. 857 of the 10th Nisan, 5737 (29th March, 1977), p. 158; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1251 of 5736, p. 326.

195 (b) The holder of a bachelor's degree in psychology conferred by an institution recognised as an institution of higher education under the Council for Higher Education Law, 5718 —19581). or a degree in psychology conferred by an institution abroad and recognised by the Registration Committee as equivalent to a bachelor's degree as aforesaid shall not practise psychology except under the supervision or guidance of a psychologist at a place of employment recognised by the Council or in the Defence Army of Israel and during the following periods: (1) a period not exceeding three years from the date of the coming into force of this Law, or from the day on which he began to practise psychology, whichever is' the later; (2) the whole of the period in which he studies for a master's degree in psychology at an institution recognised as an institution of higher education under the Council for Higher Education Law, 5718 — 1958. (c) An act done by a person occasionally or in the course of the lawful and bona fide practice of his profession, shall not be regarded as pertaining to the practice of psychology.

Prohibition 3. No person shall employ a person not permitted to practise of employment. psychology under section 2 in any activities pertaining to the practice of psychology. '

Prohibition of 4. No person permitted to practise psychology shall administer administration of medicaments. a medicament or electric shock unless he is legally authorised to do so.

Exclusivity of 5. No person shall use the designation "psychologist" or any ex• designation "psychologist". pression or abbreviation suggesting that he is qualified, able or prepared to practise psychology unless he is a psychologist and in accordance with his registration in the Register or with a permit under section 19.

Advertising. 6. The Minister of Health may, after consultation with the Council, prescribe by regulations particulars which a psychologist, is or is not permitted to advertise concerning his professional practice and prescribe permitted and prohibited modes and places of advertising.

!) Sefer Ha-Chukkim of 5718, p. 191; LSI vol. XII, p. 217.

196 7. (a) A person permitted to practise psychology who obtains Professional s ecret any information concerning any person through or in consequence of his professional practice shall keep it secret and may not disclose it unless — (1) its disclosure is, in his opinion, necessary for the treatment of that person or (2) its disclosure is required or permitted by Law or (3) the person to whom the information relates has con• sented in writing to its disclosure and has not, in writing, withdrawn his consent. (b) The provisions of this section apply also to a person who has received information as aforesaid from a person permitted to practise psychology. (c) For the purposes of this section — (1) "information" includes a document containing any piece of information; (2) "treatment" means treatment by a person qualified to give it and includes social welfare treatment and educational treatment; (3) it shall be immaterial whether the information relates to a person treated by the person practising psychology or to some other person.

8. (a) The Minister of Health may by regulations, after consultation Recognised with the Council- specialty• (1) prescribe that a particular branch of psychology shall be a recognised specialty; (2) prescribe, in respect of a recognised specialty, conditions as to training, examination, title and certificate; (3) reserve some particular psychological work to persons with a recognised specialty; (4) direct that holders of a degree in a recognised specialty shall be registered as such in the Register. (b) Clinical psychology, educational psychology and industrial social psychology shall be recognised specialties.

9. (a) From the date at which some particular work is reserved Exclusivity to persons with a recognised specialty or from a later date prescribed by regulations, no psychologist shall engage in that work unless he is registered in the Register as a person with that specialty. This provision shall not prevent a person undergoing specialised training from engaging in that work under the supervision of a person with that specialty.• . . . (b) No psychologist shall give' psychotherapeutic treatment unless he is a clinical psychologist, and no clinical psychologist shall give such treatment to a person whose ailment has or is suspected to have an organic background, unless a physician has examined the patient shortly before the beginning of the psychotherapeutic treat• ment and determined the medical treatment he requires.

Exclusivity 10. From the date at which the Minister of Health prescribes a of specialist's title. title for a recognised specialty, or from a later date prescribed by regulations, no person shall use that title or an expression or abbreviation suggesting that he is a specialist in the branch of psychology concerned, save in accordance with his registration in the Register or in accordance with the permit.

Exemption. H. Notwithstanding anything provided in this chapter, the Director may decide that a particular psychologist who engaged in• a branch of psychology before it was designated as a recognised specialty may continue doing so, with or without, the title, subject to such conditions and restrictions as the Director may decide, including the period for which he may continue so to engage and including training and examination.

Chapter Three: Registration

Register of 12. (a) There shall be kept a register or card-index (both here• Psychologists. inafter referred to as "the register") in which the persons entitled to registration as psychologists under this Law shall be registered. The particulars of registration shall be prescribed by regulations. (b) A person registered in the Register shall within thirty days notify any change which has occurred with regard to him in the particulars of registration prescribed by regulations, and he br his employer shall give the Registrar, at his request, any further information relevant to the entry in the Register.

Registration 13. (a) The Minister of Health shall appoint a Registration Com- Committee. mittee of five members. Notice of the appointment of the Committee and its address shall be published in Reshumot. (b) The members of the Registration Committee shall be — (1) a representative of the Minister of Health, who shall

198 be the chairman of the Committee and the Registrar of Psychologists; (2) three psychologists selected by the Minister of Health from a list submitted to him by the Council at his request or, if the list is not submitted to him within sixty days after service of the request, three psychologists deemed suitable by him; (3) one psychologist on the teaching staff in psychology of an institution recognised as an institution of higher education under the Council for Higher Education Law, 571« —1958. (c) The members of the Registration Committee mentioned in subsection (b) (2) and (3) shall be appointed for three years and may be once reappointed. (d) The Registration Committee may appoint from among its members subcommittees authorised to give decisions in its stead as to any matter other than reconsideration under section 17. (e) The appointment of the first Registration Committee, prior to the coming into existence of the Register, shall be for a period of one year, and the psychologists on that Committee shall be persons who in the opinion of the Minister of Health meet the requirements for registration under section 15.

14. (a) There shall be an Examinations Committee of three mem- Examinations , . ; . Committee, bers, viz.— . (1) the Head of the Mental Health Services in the Ministry of Health, or a psychologist empowered by him in that behalf, who shall be the chairman of the Committee; (2) a psychologist selected by the Director from among the teachers of psychology at one of the institutions of higher education in Israel; (3) a psychologist selected by the Council or, if the Council does not select him within sixty days after being requested to do so, a psychologist selected by the Minister of Health. (b) The subjects and procedure of the examinations shall be prescribed by regulations.

15. Any Israeli national or resident of Israel who is one of the Persons following is entitled to be registered in the Register: be're^stered. (1) the holder of a master's or higher degree in psychology conferred by an institution recognised as an institution of higher

199 משיד המשפטים מםמך זה הינו העתק שנסרק בשלמותו ביום ובשעה המצוינים . בסריקה ממוחשבת מהימנה מהמסמך המצוי בתיק, בהתאם לנוהל הבדיקות במשרד המשפטים. על החתום « 9ן משרד המשפטים (התימה מוסדית). education under the Council for Higher Education Law, 5718 — 1958; (2) the holder of a degree in psychology conferred by an institution abroad and recognised by the Registration Committee as equivalent to a degree referred to in paragraph (1); (3) a person who, to the satisfaction of the Registration Com• mittee •— (a) completed at least two years of study at an institution of higher education, practised psychology from the year 1958 onwards for at least fifteen years at a place of employment recognised by the Council and continued to practise it until the date of submission of the application, or (b) immediately before the coming into force of the Law completed not less than ten years' practice of psychology at a workplace recognised by the Council and has passed an examination in psychology before the Examinations Com• mittee referred to in section 14.

Rejection of 16. The Examinations Committee may reject an application for application for registration. registration, after giving the applicant an opportunity to be heard, even where the conditions set out in section 15 are fulfilled, if — (1) the applicant has been convicted of an offence which shows that he lacks the responsibility required for the practice of psychology, and ten years have not yet passed since he underwent his punishment or since the termination of the period of suspension under section 18 (b) of the Penal Law (Modes of Punishment) (Consolidated Version), 5730 —19701). as the case may be, or (2) some other fact exists which may show that the applicant is not able or not fit to practise psychology.

Reconsideration. 17. Where the Registration Committee has rejected an application under section 16, it may, at the request of the applicant, submitted within fifteen days after he received notice of the rejection, reconsider the matter not later than the thirtieth day after receiving the request.

Appeal. 18. (a) The applicant may appeal to the District Court in the area of which the Registration Committee sat —

i) Sefer, Ha-Chukkim of 5730, p. 109; LSI vol. XXIV, p. 112.

200 (1) against the decision of the Registration Committee to reject his application; (2) both against the decision of the Registration Committee in reconsideration proceedings and against its previous decision. (b) The appeal shall be filed within thirty days after the decision appealed against was served upon the applicant.

19. (a) The Registration Committee may grant to a person who Temporary is not an Israeli national or resident of Israel a temporary permit permit• to practise psychology, including a recognised specialty, without being registered in the Register, on condition — (1) if he has been invited to Israel to carry out a particular assignment in psychology, that it shall be limited to that assignment; (2) if he came to Israel on a visitor's permit of residence, that it shall be limited to the period of the latter and be subject to any such further condition as the Committee may see fit. (b) A temporary permit shall only be granted to a person who meets the requirements for registration in the Register, and he shall have to give notice under section 12 (b), all with such modifications as the circumstances may require.

Chapter Four: Disqualification for Health Reasons

20. (a) For the purpose of examining the physical or mental fitness Medical of an applicant for registration or of a person practising psychology, Board• the Director shall appoint, generally or in respect of a particular case, a medical board of three physicians or three physician- psychiatrists, as the case may be. (a) The Board shall submit its reasoned findings and conclusions to the Registration Committee.

21. Where the Registration Committee has a reasonable apprehension Medical that an applicant for registration in the Register suffers from an appl^m'for endangering illness, it may request him to appear before a medical registration, board for examination.

22. If the applicant refuses its request, the Registration Committee Withholding of shall not register him in the Register so long as he has not appeared re8lstratlon• and been examined.

201 Medical 23. (a) Where it appears to the Registration Committee that a examination of person person practising psychology suffers from an endangering illness, before a medical board for ־ practising :it: may request him to appear psychology. examination at such time and place as it shall prescribe. (b) The time for appearance shall not precede the time prescribed for the filing of appeal under section 30 unless the Registration Committee is satisfied that the time for medical examination should be advanced because of imminent danger to the public.

Relief from 24. A person requested to appear before a medical board is duty of appearance. relieved of the duty of appearance if he asks that his name be struck off the Register or returns the permit or discontinues his professional practice, wholly or in part, absolutely or temporarily, to the satisfaction of the Registration Committee.

Suspension of 25. Where a psychologist, having been requested to appear before registration. a medical board, does not appear at the prescribed time and place, the Registration Committee may suspend his registration in the Register until he is examined; and it may publicise the suspension in such manner as it sees fit.

Taking 26. Where the Registration Committee has reason to believe that evidence. any information likely to serve as evidence of the state of health of a person practising psychology or an applicant for registration is in the possession of a medical institution or a physician which or who treated him or that a document likely to serve as evidence as aforesaid is in the possession of a particular person, it may, before deciding to require that person practising, or that applicant, to appear before a medical board, request the possessor of the information or document to deliver the same to it, and such possessor so requested shall comply with the request.

Suspension of 27. (a) Where the Registration Committee is satisfied that an practising psychologist. endangering illness of a person practising psychology causes such immediate danger that the completion of the proceedings of the medical board or the appeal proceedings under section 30 cannot be awaited, it may suspend him pending the final decision under section 29 but not for more than three months, provided that immediately after deciding to do so it refers the matter to the medical board. (b) Where a medical board does not complete its proceedings

202 by the end of the period of suspension, the Registration Committee may, with the consent of the medical board, suspend the person .: concerned for another .,three months. (c) Where the proceedings are not completed by the end of the second period of suspension, the Registration Committee may, with, the consent of the medical board and if the urgency of the. suspension persists, suspend the person concerned for yet another three months.

28. A person who under this chapter obtains any information Duty of concerning an illness shall keep it secret and shall not disclose secrecy• it save to the extent necessary for the implementation of the provisions of this chapter, or if he has been authorised to do so by the court, or by virtue of a duty to answer questions put to him by a person competent to carry out investigations into the commission of offences:

29. Where the medical board finds that a person practising psycho- Decisions of logy or applying for registration is unable to practise psychology, comm^tee." absolutely or temporarily, by reason of an endangering illness or is able to practise psychology subject to certain restrictions or conditions, the Registration Committee shall, according to the recommendations of the medical board, refuse to register him in the Register or strike his name off the Register or prohibit or restrict his practice.

30. (a) A person who considers himself aggrieved by a decision Appeal to of the Registration Committee under this chapter may appeal supreme Court, to a Judge of the Supreme Court within thirty days after notice of the decision was served upon him. (b) The decision of the Registration Committee shall take effect immediately, and the filing of appeal shall not stay its coming into force, unless a Judge of the Supreme Court otherwise directs.

31. The powers and functions of the Registration Committee under Applicability this chapter shall in respect of the holder of a bachelor's degree bachelor's ^ under' section 2 (b) vest in the Director. degree.

Chapter Five: Disciplinary Justice

32. In this chapter, "psychologist" includes the holder of a bachelor's Scope of degree under section 2 (b). application.

203 Disciplinary 33. A psychologist is guilty of a disciplinary offence if — offences. (1) he conducts himself in a manner unbecoming the profession of a psychologist; (2) he has obtained his registration or permit by misrepresenta• tion; (3) he has displayed a lack of ability or lack of responsibility or gross negligence in carrying out his functions as a psychologist; (4) he has persistently infringed a provision of this Law or a regulation thereunder; (5) he has been convicted of an offence showing that he lacks the responsibility required for the practice of psychology.

Criminal and 34. Punishment or acquittal in criminal proceedings shall not prevent disciplinary jurisdiction. a psychologist's being charged with a disciplinary offence for the same act or omission, and punishment or acquittal in proceedings under this chapter shall not prevent his being charged with a criminal offence.

Complaints 35. (a) The Minister of Health shall appoint a Complaints Com• Committee and Disciplinary mittee and a Disciplinary Committee, each consisting of three mem• Committee. bers and their alternates. (b) The members of the Complaints Committee shall be — (1) a psychologist representing the Council, proposed by it to the Minister of Health at the latter's request, or, if no such proposal is made within sixty days from the date of the request, a psychologist deemed suitable by the Minister of Health; (2) two employees of the Ministry of Health, one of whom shall be a member of the Chamber of Advocates and shall be the prosecutor on behalf of the Committee (hereinafter referred to as "the prosecutor"). (c) The members of the Disciplinary Committee shall be — (1) a member of the Chamber of Advocates of five years' standing proposed by the Minister of Justice who shall be the chairman of the Committee; (2) two psychologists of ten years' standing appointed by the Minister of Health, one of them a psychologist in the State Service, the other selected from a list submitted to the Minister of Health by the Council or, where no such list is submitted within sixty days after service of the request, otherwise deemed suitable by the Minister of Health. (d) Notice of the appointment of the members of the Com-

204 mittees and their alternates shall be published in Reshumot. They shall be appointed for five years and may be once re-appointed. The termination of the period of appointment shall not disqualify a member of a Committee from completing the hearing of a matter which he had begun to hear.

36. A member of the Disciplinary Committee shall in judicial matters Independence, be subject to no authority but that of the law.

37. (a) Where the Complaints Committee has a reasonable suspicion Investigation that a psychologist has committed a disciplinary offence, it shall and charge- instruct one of its members to investigate the matter and shall, in accordance with the results of the investigation, decide whether to bring the psychologist before the Disciplinary Committee. (b) An investigator under subsection (a) shall for the purposes of this Law have the powers of a police inspector under section 2 of the Criminal Procedure (Evidence) Ordinance1), and section 3 of that Ordinance shall apply mutatis mutandis to investigations carried out by him by virtue of those powers. (c) Where a psychologist is struck off the Register on his application or for some other reason, the Complaints Committee may continue to act under subsection (a) or direct the suspension or quashing of the disciplinary proceedings.

38. (a) Where the Complaints Committee has a reasonable suspicion Suspension, that a psychologist has committed a disciplinary offence, or where criminal proceedings are conducted, against a psychologist for an act or omission referred to in section 33, and, having regard to the cause and gravity of the disciplinary offence, the Committee deems it necessary to suspend the psychologist, it shall bring the matter before the Director and he may, if he is satisfied of the necessity of the suspension, suspend the psychologist from practising for a period not exceeding one month. (b) The psychologist may, within fifteen days from the date of service of notice of the suspension, appeal against it to the District Court in the area of jurisdiction of which he carries on his practice.

39. The District Court may, on the application of the Director Extension of and after hearing the psychologist, extend the period of suspension susPension•

*) Laws of Palestine vol. I, p. 467 (English Edition).

205 until the disciplinary or criminal proceedings are completed and no further appeal lies.

Secrecy of 40. The Disciplinary Committee shall sit in camera. proceedings.

Presence at 41. Disciplinary proceedings shall be conducted in the presence proceedings. of the prosecutor and the accused, but the Committee may conduct the proceedings in the absence of the accused if his defence counsel appears in his stead or the accused is absent from the hearing without sufficient cause though warned that if he.is absent without sufficient cause the Committee will have the right to hear the case in his absence.

Rules of 42. The Disciplinary Committee shall only be subject to the evidence. rules of evidence to the extent prescribed by this Law or by regulations made by the Minister of Health.

Disciplinary 43. (a) Where the Disciplinary Committee finds a psychologist measures. guilty of a disciplinary offence, it shall take against him one or several of the following measures: (1) a warning; (2) a reprimand; (3) a fine of up to 5,000 pounds; (4) prohibition from practising psychology for a period not exceeding five years; (5) removal of the psychologist's name from the Register. (b) Where the name of a psychologist has been removed from the Register under this section, an application by him for renewal of his registration shall only be entertained after the expiration of seven, years from the date at which the decision to remove his name was given and after he has proved that special circumstances exist justifying the renewal of his registration. The new registration shall require the approval of the Disciplinary Committee. (c) Where the name of a psychologist has been removed on his application, the Disciplinary Committee may declare that the removal shall be deemed to have been effected under this section. . ' (d) In the case of the holder of a permit, cancellation of the permit shall take the place of removal of the name from the Register under this section. , .

206 44. The prosecutor and the accused may, within thirty days after Appeal, service of the decision of the Disciplinary Committee, appeal against it to the District Court in the area of jurisdiction of which the psychologist carries on his practice.

45. Where the Disciplinary Committee has a reasonable apprehension Mentally sick that by reason of mental illness the psychologist is not fit to stand Psycholo§Ist• trial or is not responsible for the act or omission which is the subject of the charge, it may request the Registration Committee to proceed in accordance with the provisions of Chapter Four. If the Registration Committee decides not to remove the name of the psychologist from the Register, the Disciplinary Committee shall continue the disciplinary proceeding.

46. (a) The Disciplinary Committee may, after hearing the pro- Publications, secutor and the psychologist, direct that the whole or part of its decision shall be published, with or without the name of the psychologist, in such form and place as it shall prescribe. (b) In every case in which a psychologist has been charged in consequence of a complaint, the Complaints Committee shall notify the complainant of the decision of the Disciplinary Committee.

Chapter Six: Psychologists' Council

47. There shall be established a Psychologists' Council of twenty- Council, seven members, viz.•— (1) the Minister of Health, or a person appointed by him, who shall be the chairman; (2) four representatives of psychology departments of institutions of higher education recognised by the Council for Higher Education; (3) three representatives each of the Minister of Health, the Minister of the Interior and the Minister of Education and Cul• ture, including at least two psychologists, and one representative each of the Minister of Social Welfare, the Minister of Labour, the Minister •of Defence, the Minister of Finance arid. the Minister of Immigrant Absorption; (4) eight members appointed by the Minister of Health upon the recommendation of the organisation which in his opinion represents the greatest number of psychologists or, if no recom• mendation is submitted within sixty days after the request for its submission is made, eight psychologists deemed suitable by the Minister of Health.

:207 Functions of 48. The functions of the Council shall be — Council. (1) advising the Minister of Health on matters on which he is required by this Law to consult with the Council and on other matters relating to the practice of psychology in Israel; (2) the grant of recognition to places of employment under section 2 (b) and 15 (3); (3) the submission of lists of candidates for membership of the Registration Committee and the Disciplinary Committee; (4) the election of a member of the Examinations Committee and a representative of the Council on the Complaints Committee.

Term of 49. A member of the Council shall serve for three years and office. may be once reappointed. If the place of a member falls vacant, another member shall be appointed in his stead in the same manner in which he himself was appointed and shall serve until the expiration of the term of office of his predecessor.

Rules of 50. The Council may in full session prescribe its rules of procedure procedure. in so far as they have not been prescribed by Law or regulations.

Committees. 5!. (a) The Council may — (1) appoint from among its members permanent and ad hoc committees and prescribe their powers and functions; (2) delegate powers to such committees as aforesaid. (b) Upon the recommendation of the Council, the Minister of Health may appoint a person who is not a member of the Council to take part in the deliberations of a committee in an advisory capacity.

Participation 52. The Council and its committees may invite the chairman of of chairman of Registration the Registration Committee to take part, in an advisory capacity, Committee. in' a meeting at which a subject within the scope of his functions is dealt with, and he may take part, in an advisory capacity, in any meeting of the Council or of a committee thereof upon the direction of the Minister of Health.

Chapter Seven: Penalties

Penalties. 53. (a) A person who does any of the following shall be liable to imprisonment for a term of one year or a fine of 10,000 pounds: (1) contravenes any of the provisions of sections 2, 3, 4, 5 and 7;

208 (2) without lawful authority discloses anything which has come to his knowledge by virtue of his functions under this Law or from a meeting of the Registration Committee, a medical board or the Disciplinary Committee; (3) practises psychology in contravention of a prohibition or restriction imposed by virtue of the provisions of this Law, or in a period during which he is suspended under this Law. (b) A person who contravenes any of the provisions of sections 9, 10, 12 (b) and 26 shall be liable to imprisonment for a term of six months or a fine of 5,000 pounds. (c) A person who fails to comply with a provision of any regulations under this Law, it being prescribed that non-compliance with such provision shall be an offence, shall be liable to the penalty prescribed by such regulations, provided that it shall not exceed what is prescribed by subsection (b).

Chapter Eight: Miscellaneous

54. (a) The Registration Committee under section 13, a medical Auxiliary board under section 20, the Complaints Committee under sec- committees, tion 25 (b) or the Disciplinary Committee under section 35 (c) may, if the same is necessary for the discharge of its functions — (1) summon any person to appear before it in order to give evidence or to produce anything; (2) require any witness to give evidence on oath or affirmation in accordance with the provisions applicable in a court of law; (3) apply to the District Court in the area of jurisdiction of which the committee or board is sitting for an order under section 13 of the Evidence Ordinance (New Version), 5731 — 1971 1)j (4) award travelling and lodging expenses and a loss-of- working-time allowance to witnesses summoned by virtue of this section, as if they were witnesses summoned to give evidence in a court of law. (b) Where a person, having been required by any such com• mittee or board as aforesaid to give evidence or to produce anything, refuses to do so without justification satisfactory to such committee l) Dinet Medinat Yisrael (Nusach Chadash) No. 18, p. 421; NV vol. II, p. 198. or board, the District Court in the area of jurisdiction of which such committee or board is sitting may, on the application of the Director or the chairman of such committee or board, enforce compliance with the directions of such committee or board in such manner as it may see fit, including the arrest of such person. (c) The Minister of Justice shall prescribe rules of procedure for the implementation of this section.

Provisions as 55. (a) The resignation of a member of the Council or of one to members of Council and of the committees referred to in section 54 shall be tendered to committees. the Minister of Health in writing and shall take effect fifteen days after being so tendered. (b) The Minister of Health may remove a member of the Council or of one of the aforesaid committees from office if— (1) he has lost the physical or mental power, or is for some other reason unable, to carry out his functions; (2) he has been convicted of a criminal offence involving moral turpitude; (3) he has become bankrupt or a receiver for his property has been appointed by the Court; (4) he has left Israel permanently; (5) he has been absent from so many consecutive meetings of the Council as it shall have prescribed in advance or from three consecutive meetings of the committee. (c) After a number of absences enabling his removal from office, the absentee shall be given written notice, by registered post, specifying the meetings from which he was absent and quoting the full text of this section. If he is the representative of a Minister or body,, a copy of the notice shall be sent to the same. (d) The Minister of Health may also remove a member of the Council from office at the request of the Minister or body whom or which the member represents. (e) In any of the cases enumerated in paragraphs (1) to (4) of subsection (b), the Minister of Health shall not remove a member of the Council or of a committee from office without having consulted with the Minister or body whom or which the member represents.

Commencement 56. (a) This Law shall come into force on the 22nd Tevet, 5738 and transitional (1st January, 1978), but sections 8 and 13 to 18, Chapter Four, provisions. Chapter Six and section 54 shall come into force on the date of publication of this Law in Reshumot.

210 (b) A person who practised psychology immediately before the publication of this Law in Reshumot may, within ninety days from the date of publication, file an application for registration in the Register. If he does so, he shall not practise psychology after the date on which he is notified of the rejection of the application. If the application is not decided upon by the date of the coming into force of this Law, he may continue practising psychology until a decision is given. (c) A person who practises psychology after being notified of the rejection of his application shall, for the purposes of punishment, be deemed to have practised psychology after the coming into force of this Law without being registered in the Register.

57. (a) The Minister of Health is charged with the implementation Implementation

of this Law and may make regulations as to any matter relating regUiatj0ns. to its implementation, including regulations prescribing fees for registration, permits and examinations. (b) The Minister of Health may, in consultation with the Council, make rules of professional ethics for psychologists. (c) The making of regulations under section 6, 50 or 54 or subsection (b) and the prescribing of fees under subsection (a) shall require consultation with the Public Services Committee of the Knesset.

58. This Law shall be published in ReshumcH within fifteen days Publication, from the date of its adoption by the Knesset.

YITZCHAK RABIN VICTOR SHEMTOV Prime Minister Minister of Health

EFRAYIM KATZIR President of the State

2.11 (No. 71)

STATE SERVICE (DISCIPLINE) (AMENDMENT No. 5) LAW, 5737 —1977 *

Amendment of 1. In the State Service (Discipline) Law, 5723 — 1963 *) (hereinafter section 1. referred to as "the principal Law" the following definition shall be added at the end of section 1:

" "inspected body" means a local authority or any other body to the employees of which this Law has been made applicable under section 75.".

Replacement of 2. Section 3 of the principal Law shall be replaced by the section 3. . „ following section:

"Members of 3. (a) The Minister of Justice shall, in consultation court. with the Minister of Finance, appoint the members of the Court for a period of five years from lists of State employees and employees of inspected bodies, including persons entitled to a pension in respect of retirement from the State Service or from the service of inspected bodies and not yet seventy years of age, such lists being — (1) a list drawn up by the Minister of Justice of persons qualified to be appointed as Judges of a Magistrates' Court (herein• after referred to as "the lawyers' list"); (2) a list submitted by the Service Com• missioner (hereinafter referred to as "the Service Commissioner's list"); (3) a list submitted by the organisation of State employees representing the greatest

Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 858 of the 10th Nisan, 5737 (29th March, 1977), p. 170; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1219 of 5736, p. 108. Sefer Ha-Chukkim of 5723, pp. 50 and 98 — LSI vol. XVII, pp. 58 and 124; Sefer Ha-Chukkim of 5731, p. 39 — LSI vol. XXV, p. 31; Sefer Ha-Chukkim of 5734, p. 54 — LSI vol. XXVIII, p. 49; Sefer Ha- Chukkim of 5736, p. 20 — LSI vol. XXX, p. 18.

212 number of State employees (hereinafter referred to as "the list of the representative organisation of State employees"; (4) a list of employees of each inspected body, submitted by the employees' organi• sation representing the greatest number of employees of the inspected body (herein• after referred to as "the list of the repre• sentative organisation of employees of the inspected body"). (b) If the list of the representative organisation of State employees or the representative organisation of employees of the inspected body is not submitted within two months after service of a request for its submission, the appointment shall be made from the whole body of State employees or em• ployees of the inspected body, as the case may be, including the persons entitled to a pension in respect of retirement from the State Service or from service in the inspected body and not yet seventy years of age, and the persons so appointed shall be deemed to have been appointed from lists submitted by the said representative or• ganisations. (c) The Minister of Justice may prescribe by order the minimum number of persons to be included in each list under this section, and such number may be different in respect of the different lists. Where the number of persons included in a particular list falls short of the minimum prescribed for that list, and the person authorised to submit the list does not complete it within sixty days after service of a request for its completion, the Minister of Justice may complete it. (d) A member of the Court whose period of tenure has expired, being a State employee or employee of an inspected body, may be reappointed. (e) A member of the Court who begins to hear a particular case during his period of tenure may complete the hearing thereof after the expira• tion of such period.". Replacement of 3. Section 6 of the principal Law shall be replaced by the

.. . ״ section 6. r following section:

"Composition 6. (a) The Court shall hear cases by a bench of benches of Court. of three, to be appointed by the President of the Court for the particular case concerned. Each bench shall include one person from the lawyers' list, one from the Service Commissioner's list and, if the action is brought against a State employee, one from the list of the representative organisation of State employees, and if the action is brought against an employee of an inspected body, one from the list of the representative organisation of employees of that body. Every bench shall include at least two members who are employees to whom this Law applies. (b) The Government may prescribe additional conditions for the composition of the Court which tries an offence of an employee of an inspected body. (c) The President of the Court shall appoint a chairman for every bench; but if he himself is on the bench, he shall be the chairman.".

Replacement of 4. Section 9 of the principal Law shall be replaced by the following section 9. section: "Termination 9. If a member of the Court ceases to be a of tenure. State employee or employee of an inspected body, otherwise than by reason of retirement on pension, or reaches the age of seventy years, his tenure as a member of the Court shall terminate; but he may, with the approval of the President of the Court, terminate the hearing of a particular case which he began before the termination of his tenure.".

Replacement of 5. Section 10 of the principal Law shall be replaced by the section 10. following section:

"Members 10. (a) Chapter Four of the Judges Law, 5713 — of Court. 1953 1). except sections 22 (a) (4) and 23A, shall

i) Sefer Ha-Chukkim of 5713, p. 149; LSI vol. VII, p. 124.

214 apply to the members of the Court as if they were Judges dealt with by that Law: Provided that if a member of the Court, in proceedings under the said chapter, is found un­ worthy to continue in office as a member of the Court, the following special provisions shall apply: (1) The Minister of Justice shall remove him from office as a member of the Court; (2) if he committed the offence while being a State employee or employee of an in­ spected body, the court which tries him may impose disciplinary measures specified in this Law and may exercise the powers of the Court of Discipline as to his benefits and other auxiliary powers con­ ferred upon the Court by any enactment; (3) the decisions of the court which tries him shall be treated as decisions of the Court of Discipline, but no appeal shall lie therefrom. (b) In the case of a disciplinary offence to which subsection (a) does not apply, a' member of the Court shall be tried by the Service Com­ mission, and for.this purpose the Service Commis­ sion shall take the place of the Court of Discipline.".

6. Section 11 of the principal Law shall be replaced by the Replacement of .section 11 .. ״ ״ following section:

"Powers of 11. Subject to section 7, the Court shall have Court' all the powers vested in a commission of inquiry by sections 8 to 11 and 27 (b) of the Commissions of Inquiry Law, 5729 — 1968

7. In section 17 of the principal Law — Amendment of (1) paragraph (3) shall be re-marked as paragraph (4) and the following paragraph shall be inserted before it: "(3) conducts himself in a manner unbecoming his office i) Sefer Ha-Chukkim of 5729, p. 28; LSI vol. XXIII, p. 32.

215 as a State employee or likely to impair the image or good name of the State Service;"; (2) paragraph (4) shall be re-marked as paragraph (6) and the following paragraph shall be inserted before it: "(5) obtained his appointment in the State Service by giving false information or concealing a relevant fact or by the use of threats or force or other improper means;".

Replacement of 8. Sections 19 to 21 of the principal Law shall be replaced by sections 19 to 21. the following sections:

"Disciplinary 19. (a) There shall be established Disciplinary Committees. Committees, each consisting of three State em• ployees, the function of which shall be to try State employees for disciplinary offences of the kinds designated by the Minister of Justice by regulations, other than offences mentioned in paragraphs (3) to (6) of section 17.

(b) The Minister of Justice shall appoint the members of the Disciplinary Committees from a list submitted to him by the Service Commissioner, as well as from a list submitted to him by the organisation of State employees representing the greatest number of State employees or, if such a list is not submitted within two months after receipt of a request for its submission, from the whole body of State employees. Section 3 (c) shall apply to the lists mutatis miitandis. (c) The establishment of the Disciplinary Com• mittees and the appointment of their members shall not derogate from the powers of the Court.

Appointment of 20. (a) The President of the Court shall appoint Disciplinary Committees. the Disciplinary Committees from among the mem• bers of the Disciplinary Committees appointed under section 19 (b) and shall prescribe who shall be the chairman of each Committee; but if the organi• sation of State employees representing the greatest number of State employees has submitted a list, at least one member of a Disciplinary Committee

216 shall be a State employee whose name is included in that list. (b) The President of the Court may appoint Disciplinary Committees for a particular case or for every case, and he may limit the jurisdiction of a Disciplinary Committees to particular Ministries, to particular units in a particular Ministry, to a particular part of the State territory or of the area of a local authority or to particular categories of employees or offences, as he may think fit in the circumstances of the case.

Restriction on 21. An employee of the Ministry to which the eligibility. accused belongs shall not be a member of a Disciplinary Committee which is to hear the com- plaint filed against the accused.''.

9: In section 22 of the principal Law, the words "A complaint to Amendment of a Disciphnary Committee filed otherwise than by the Service Com- missioner shall be filed with the Service Commissioner, who shall forward it to the Disciplinary Committee which has jurisdiction in the matter" shall be added at the end.

10. Section 23 of the principal Law shall be replaced by the Replacement of .section 23 .. ״ , following section:

"Rules of 23. A Disciplinary Committee shall not try or Disdplinaryf t^e evidence in the case of an employee save in Committee. his presence. In every proceeding of a Disciplinary Committee, the employee concerned shall be given an opportunity to be heard, to produce evidence and to examine every witness who appears before the Committee.".

11. Section 24 of the principal Law shall be replaced by the Replacement following section: of section 241

"Powers of 24. Subject to the provisions of section 30, a ComnSttee^ Disciplinary Committee shall have all the powers vested in a commission of inquiry by sections 8 to 11 and 27 (b) of the Commissions of Inquiry Law, 5729 — 1968".

217 Amendment of 12. In section 25 of the principal Law — (1) the expression "100 pounds" in paragraph (3) shall be replaced by the expression "500 pounds"; (2) the words "in coordination with the Service Commissioner" in paragraph (4) shall be replaced by the words "in coordination with the Director-General of the Ministry or a person appointed in that behalf by the Director-General"; (3) the following paragraphs shall be inserted after paragraph (4): "(5) deprivation, for such period, not exceeding one year, as it may determine, of all or any length-of-service rights; (6) reduction in grade, or freezing of grade, to such extent and for such period, not exceeding one year, as it may determine.".

Amendment of 13. Section 29 of the principal Law shall be re-marked as sec• section 29. tion 29 (a) and the following subsections shall be added thereafter: "(b) A disciplinary measure decided upon by a Disciplinary Committee shall only be carried out when the period of appeal has elapsed or, where an appeal is filed, when the Court has decided the appeal. (c) The provisions of this section shall not delay the imple• mentation of a decision to transfer the employee to another post or workplace forthwith.".

Amendment of 14. In section 34 of the principal Law, paragraphs (6) to (10) section 34 shall be replaced by the following paragraphs: "(6) transfer, in coordination with the Director-General of his Ministry or a person appointed by him in that behalf, to another post or workplace within his Ministry for a limited or unlimited period; (7) disqualification, after transfer to another post or workplace, for the carrying out of certain tasks to such extent and for such period as it may determine; (8) dismissal, with payment of full or partial severance pay or without payment of severance pay; (9) disqualification, after dismissal or retirement from the State Service in some other manner, for the carrying out of certain tasks permanently or for such period as it may determine; (10) disqualification, after dismissal or retirement from the State Service in some other manner, for the State Service per• manently or for such period as it may determine;

218 (11) in conjunction with some other disciplinary measure, pub­ lication of the whole or part of its decision in such manner as it may determine.".

15. Section 35 of the principal Law is hereby repealed. Repeal of section 35.

16. In section 39 of the principal Law, the words "under sec- Amendment of section 39 tion 11 (5)" shall be replaced by the words "by virtue of section 11".

17. Section 40 (b) of the principal Law shall be replaced by the Amendment of . „ . , section 40. following subsection: "(b) Where the Court decides to dismiss an employee from the State Service or to transfer him to another post or workplace, it may, in its decision, directjmmediate implementa­ tion if it considers that the gravity of the offence justifies this.".

18. Section 41 of the principal Law shall be replaced by the Replacement of .section 41 . ״ . following sections:

"Publicity of 41. (a) The hearings of the Court shall be in public,

s{age of ^ hearingj the Court ״hearings. (b) At eac may decide, for reasons which shall be recorded in the decision, to hold the whole or part of the hearing in camera if in its opinion this is necessary to safeguard the security or foreign relations of the State or to protect morality, the welfare of a minor or the proper functioning of the State Service. (c) Where the Court has decided to hold a hearing in camera, it may permit any person or category of persons to be present at the time of the whole or part of the hearing. (d) A person shall disclose nothing concerning a hearing of the Court held in camera save with the permission of the Court or to the extent that the disclosure is required for the implementation of a decision of the Court or for the implementation of this Law. (e) A person who contravenes the provision of subsection (d) is liable to imprisonment for a term of six months or a fine of 5,000 pounds.

219 Removal of 41A. The Court may prohibit a minor from being minors from court. in court at the time of the hearing and order him to be removed.

Prohibition of 4IB. (a) A person shall not take photographs in publication. the courtroom or publish photographs taken there. (b) A person shall not without permission from the Court publish the name, picture, address or other particulars likely to lead to the identifica­ tion of a minor under sixteen years of age who is a witness in a proceeding before the Court or of a complainant or injured party in the matter of a disciplinary offence involving an infringement of mojality. (c) The Court may prohibit any publication concerning a proceeding before it in so far as it deems this necessary to protect the safety of a party, a witness or a person whose name was mentioned in the proceeding. (d) A person shall publish nothing concerning a matter pending in the Court if the publication might affect the progress or outcome of the hearing; but this prohibition shall not apply to the bona fide publication of information concerning anything said or occurring at a public session of the Court.

Disturbance of 41C. Where a person disturbs the proceedings of proceedings. the Court in the sight of the Court or near the place of those proceedings, the Court may order his departure or removal.

Penalties. 41D. A person who contravenes the provisions of section 42B shall be liable to imprisonment for a .".pounds 5,000־ term of six ,months-or a fine of

Replacement of 19. Section 42 of the principal Law shall be replaced by the

. ., . ״ section 42. c following section:

"Publication of 42. The Service Commissioner may publish a deci­ decisions. sion given by the Court at a hearing in camera, but he shall not publish a decision in a manner

220 permitting the identification of the person tried save with the consent of the Court.".

20. In section 43 of the principal Law — Amendment section 43. (1) the marginal note shall henceforth read "Appeal against decision of Court."; (2) subsection (a) shall be replaced by the following subsection: "(a) The judgment of the Court in any action may be appealed against by the employee and by the prosecutor to a Judge of the Supreme Court sitting alone not later than the thirtieth day after being given if it is given in the presence of the appellant or after service upon him of a copy thereof if it is given in his absence."; (3) in subsection (b), the words "Where the Court has decided upon the immediate carrying out of the dismissal" shall be replaced by the words "Where the Court has decided upon the immediate carrying out of the dismissal or upon immediate transfer to another post or workplace under section 40 (b)" and the words "or, if the employee has already been dismissed under the decision" shall be replaced by the words "or, if the employee has already been dismissed, or transferred as aforesaid, under the decision"; (4) subsections (c) and (d) shall be replaced by the following subsections: "(c) If the Judge decides to rescind a decision to dismiss an employee or to transfer an employee to another post or workplace, the rescission shall in all respects be retro• active to the day when the dismissal or transfer was carried out.". (d) In determining an appeal, the Judge may do one of the following: (1) allow the whole or part of the appeal and vary the judgment or quash it and give another judgment instead or remit the hearing with instructions to the Court; (2) dismiss the. appeal; (3) in connection with the judgment, give any other decision which the Court was competent to give."; (5) subsection (e) shall be re-marked as subsection (g) and the following subsections shall be inserted before it: "(e) The Judge may dismiss an appeal even if he accepts a contention that has been put forward so long as he considers that no miscarriage of justice has been caused, (f) For the purposes of an appeal, the finding and the sentence together form the judgment.".

Addition of 21. The following section shall be inserted at the beginning of section 46A. Chapter Four of the principal Law:

"Interpretation. 46A. For the purposes of this chapter— (1) the income of a suspended employee from outside work is his income from work, other than work in the post to which the suspension applies, whether as a hired worker or otherwise, except income from work as aforesaid regularly carried on by him immediately before his suspension, or, if the post to which the sus­ pension applies is a part-time.post, the amount by which the aggregate of his determining salary from that post and his income outside that post exceeds the determining salary which would have been due to him if he had been employed in a full-time post; (2) "determining salary" at a particular time, means the determining salary according to which the pension of the suspended employee would then be payable had he retired on pension on the date of his suspension.".

Replacement of 22. Section 47 of the principal Law shall be replaced by the .. ״ ״ .section 47 following section:

"Suspension. 47. (a) Where a plaint has been filed under section 32 against an employee, the Service Commissioner may suspend him from his post in the State Service. Where a criminal investigation by the police has commenced against an employee in respect of an offence which in the opinion of the Service Commissioner involves moral turpitude, the Service Commissioner may suspend him from his post in the State Service after consultation with the Attorney-General or his representative.

222 (b) The Service Commissioner shall not sus• pend an employee until the latter has been given an opportunity to state his case in the matter of the suspension to him or a person empowered by him for this purpose either permanently or in respect of a particular case. (c) Where the employee is employed in several posts in the State Service, the Service Commissioner may suspend him as aforesaid from all or part of them. (d) Whenever the Commissioner may suspend an employee under this section, he may, instead of suspending him, temporarily transfer him to work in a post one of the grades of which is not lower than the grade of his present post and in which his grade will not be lower than it was immediately before the transfer or, with his consent, to work in a post the grade of which is lower than that of his present post. (e) Where an employee against whom a plaint only has been filed is suspended without a police investigation having preceded the suspension, the suspension shall not last beyond the completion of the proceedings in the action filed against him under section 33 (hereinafter referred to as "the completion of the disciplinary proceedings"). (f) Where an employee is suspended in con• sequence of a police investigation as referred to in subsection (a), the suspension shall not last beyond the date of a decision as to the results of the investigation; however — (1) if it is decided to file an information against the employee, the suspension shall not last beyond fifteen days from the date of the completion of the proceedings upon the information (hereinafter referred to as "the completion of the criminal proceed• ings"); (2) if the criminal proceedings have been completed and, by the expiration of the fifteen days referred to in paragraph (1), a plaint is filed against. the employee on the basis of facts which emerged in the course of the investigation or the court shall not last ״ proceedings,«the suspension ־׳. • beyond the completion of the disciplinary proceedings; (3) if it has been decided not to file an information as a result of the police in­ vestigation, and within fifteen days from the date of the said decision a plaint is filed on the basis of facts which emerged in the course of the investigation, the sus­ pension shall last until the completion of the disciplinary proceedings, (g) For the purposes of this section, a pro­ ceeding shall be regarded as completed when appeal no longer lies.".

Amendment of 23. In section 48 of the principal Law, the words "suspend the section 48. employee for a period not exceeding fourteen days" shall be replaced by the words "after giving the employee an opportunity to state his case to him or a person empowered by him for this purpose either permanently or in respect of a particular case, suspend him for a period not exceeding fourteen days or temporarily transfer him, for such period as aforesaid, to other work within the same Ministry in a post to which the Service Commissioner is authorised to transfer him under section 47.".

Replacement of 24. Section 49 of the principal Law shall be replaced by the section 49. , „ . following section:

"Payment of 49. (a) An employee suspended by the Service salary during period of Commissioner or by a Judge under section 43 (b) suspension. shall during the first six months of his suspension, including an earlier period of suspension under section 48, be paid one half of his determining salary, and from then onwards his full determining salary; but the President or Deputy President of the Court or a member of the Court qualified to be appointed Judge of a Magistrates' Court and em­ powered for this purpose by the President of the Court may on the application of the prosecutor or the employee, as the case may be, and on such conditions as he may think fit reduce or discontinue

224 the payment for the whole or part of the period of suspension or, for the first six months, increase it. (b) A payment under this section shall be a provisional payment subject to the final decision of the Court of Discipline or the Service Commis• sioner, as the case may be. Where the payment is part of the determining salary of the employee, the remainder shall be retained by the Treasury during the whole period of his suspension. (c) The Minister of Justice may be regulations prescribe tests, procedure and special instructions as to evidence in application proceedings under subsection (a). (d) Notwithstanding the provisions of subsec• tion (a), the provisional payment made to a sus• pended employee shall not in any one month exceed the amount by which his determining salary exceeds his income from outside work in that month.".

25. In section 53 of the principal Law, the words "and who has Amendment of section. 53 not been tried disciplinarily for it" shall be replaced by the words "and who has not been tried disciplinarily on the basis of facts set out in the information or which came to light in the course of the proceedings before the court of law".

26. In section 55 of the principal Law, subsection (a) shall be Amendment of, replaced by the following subsection: section 55. "(a) Where a suspended employee has returned to work after the proceedings against him have been discontinued, he shall be paid his salary for the period of suspension which has not been paid to him under section 49. Where the employee has returned to work after the Service Commissioner has revoked the suspension, but the proceedings against him have not been discontinued, he shall be paid his salary as aforesaid unless the Commissioner otherwise decides.".

27. In section 63 of the principal Law, the following subsection Amendment of shall be added after subsection (b): section 63' "(c) This Law shall not derogate from the provisions of the Labour Inspection (Organisation) Law, 5714— 19541X or any

!) Sefer Ha-Chukkim of 5714, p. 137; LSI vol. VIII, p. 175.

225 other Law dealing with work safety, as to the taking of disciplinary measures against an employee for non-compliance with work safety rules. An employee against whom disciplinary measures have been taken as aforesaid shall not be tried disciplinarily under this Law for the same act or omission.".

Amendment of 28. In section 64 of the principal Law, the words "For the purposes

a proceeding shall be regarded as completed when ־section 64. Qj ^ sectjon appeal no longer lies" shall be added at the end.

Addition of 29. The following section shall be inserted after section 69 of section 70. • • ! ! the principal Law: "Powers and 70. (a) Where an employee is suspended, every appointments. power and appointment given him in consequence of his being a State employee, except an appoint­ ment under the Appointments Law, shall be sus­ pended for the period of his suspension from the State Service; however, an appointment as a member of the Court may only be suspended with the approval of the Minister of Justice. (b) Where a person has been dismissed, or disqualified for the Service, under this Law, every power and appointment given him in consequence of his being a State employee shall lapse.".

Replacement of 30. Section 71 of the principal Law shall be replaced by the section 71. following section:

"Powers of 71. (a) The Director-General shall have the powers ?ndeholdîreofral vested in tbe Minister of his Ministry by sections other post. 31, 32 and 48 unless the Minister otherwise directs. (b) The Minister may, upon the recommenda• tion of the Service Commission, delegate any of his powers under sections 31, 32 and 48 to the holder of a post in his Ministry.".

Amendment of 31. In section 73 of the principal Law, the figures "15, 22, 25

,(22״> section 73. ^ ^ 32 and 45„ ^ fee replaced by the figures 4) 25 55 ,53 ,52 ,45 ,32 ,28 ,26(b ) and (c) and 67".

Commencement. 32. (a) Sections 3 (e) and 9 of the principal Law, as enacted by this Law, shall come into force on the date of publication of

226 this Law in Reshumot (hereinafter referred to as "the date of publication"). (b) Sections 3 (a) to (d) and 6 of the principal Law, as enacted by this Law, shall come into force upon the expiration of six months from the date of publication. (c) The other provisions of this Law shall come into force upon the expiration of sixty days from the date of publication.

33. Where an employee was on suspension immediately before the Transitional date of publication, the provisions of section 49 (a) of the principal Provislons• Law, as enacted by this Law, shall apply to him upon the passage of three months from the date of publication.

34. This Law shall be published in Reshumot within fifteen days Publication, from the date of its adoption by the Knesset.

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State

227 (No. 72)

AERODROMES AUTHORITY LAW, 5737 — 1977 * Chapter One: Establishment of Authority-

Definitions. 1. In this Law

"the Air Navigation Laws" means the Air Navigation Law, 19271)j and the Colonial Air Navigation (Application of Acts) Order, 1937 2);

"aircraft" means a device or structure supported in flight by the reactions of the air, other than reactions against the surface of the earth or of water;

"aerodrome" means a continuous area, with the structures and installations therein, designed for the take-off and landing of aircraft and for the carrying out of operations or the provision of concomitant services, such as — (1) the transportation of passengers and goods by air; (2) the transportation and parking of aircraft and vehicles; (3) the provision of security, health, customs, police, tourist and similar services.

Establishment of 2. There is hereby established an "Aerodromes Authority" (here- Authority.eS inafter referred to as "the Authority"), which shall act through the Council of the Authority, the Director of the Authority and the employees of the Authority.

The Authority 3. The Authority shall be a body corporate, competent in respect — a body corporate. of any obligation, right or legal act.

The Authority 4. The Authority shall be an inspected body under section 9 (2) 3 -^an inspected q{ {he Sta{e Comptroller Law> (Consolidated Version) 5718 — 1958 ).

Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 859 of the 11th Nisan, 5737 (30th March, 1977), p. 182; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1290 of 5737, p. 176. Laws of Palestine vol. Ill, p. 2411 (English Edition). 2) P.G. of 1937, Suppl. II, p. 675 (English Edition). 8) Sefer Ha-Chukkim of 5718, p. 92; LSI vol. XII, p. 107.

228 5. (a) The functions of the Authority are — Functions of ... • • J i J iu Authority. (1) to maintain, operate, develop and manage the aero• dromes specified in the Schedule (hereinafter referred to as "the aerodromes of the Authority"), to carry out planning and building operations therein and to provide therein services concomitant to all these operations; (2) to plan and establish any aerodrome provided for in an aerodromes master plan approved by the Minister of Transport; (3) to adopt measures for the security of the aerodromes of the Authority and of the persons, goods, aircraft, structures, installations and equipment therein in accordance with the directions of the Minister of Transport. (b) In addition to the services provided by it under subsec• tion (a), the Authority may provide in or in connection with its aerodromes other services which can be provided incidentally to the carrying out of its aforesaid functions. (c) In carrying out its functions and providing services under this section, the Authority shall be guided by the principles of the advancement and development of carriage by air, the efficient operation of the aerodromes of the Authority and the attainment and maintenance of an appropriate standard of flight safety. (d) The provisions of this section shall not be construed as derogating from any power under the Building and Planning Law, 5727 — 1965 1). 6. The Authority may, with the approval of the Minister of Discontinuance Transport, discontinue the operation of any of its aerodromes for °l aerodrome, a predetermined period or until notice of the revocation of the discontinuance, on such conditions and at such times as it shall prescribe.

7. A guiding principle in the activities of the Authority shall The Authority be that its aerodromes as a whole and, as far as possible, each undertaking01"10 individual aerodrome shall be managed on the basis of economic calculations and as a self-supporting undertaking.

Chapter Two: Council of the Authority

8. (a) The Council of the Authority (hereinafter referred to as Council of the "the Council" shall consist of fifteen members. ™°!|t L!nd compositiof n thereof. !) Sefer Ha-Chukkim of 5725, p. 307; LSI vol. XIX, p. 330.

229 (b) The Minister of Transport shall, with the approval of the Government, appoint the members of the Council: seven from among representatives of the public, seven from among State employees and one who shall be the chairman of the Council. The Minister of Transport may by regulations, with the approval of the Economic Committee of the Knesset, prescribe qualifications for membership of the Council, including the right to propose candidates. (c) The Minister of Transport may, in consultation with the Council, appoint one deputy chairman or vice-chairman from among the members who are State employees. (d) Notice of the appointment of the members, the chairman and the deputy chairman or vice-chairman of the Council shall be published in Reshumot. (e) The Council shall have every power of the Authority not assigned to another of its organs by this Law or any other enactment.

Period of 9. (a) The period of tenure of a member of the Council shall tenure. be four years. (b) When the period of tenure of a member of the Council has expired, the Minister of Transport may appoint him for a further period; extension for a third period of tenure shall require the approval of the Government.

Restrictions on 10. (a) A person to whom one of the following applies shall

:ot ^ appomtecj a member of the Council״ .appointment (1) he is not an Israeli national; (2) he has been convicted of, or served a sentence of imprisonment for, an offence involving moral turpitude within the ten years preceding the decision as to his appointment; (3) he is a bankrupt, or a receiver has been appointed for him on behalf of the court. (b) A person connected with the Authority by commercial or contracting transactions or having control of a body corporate, including a partnership, connected as aforesaid shall not be ap­ pointed a member of the Council; but representatives of public bodies or representatives of Government companies shall not be disqualified by reason only that the bodies or companies represented by them are so connected.

230 11. (a) A member of the Council shall cease to hold office before Termination ,of tenure ,. ....,״ the expiration of his period of tenure if — (1) he resigns his membership of the Council by delivering a letter of resignation to the Minister of Transport or (2) he is convicted of an offence involving moral turpitude or (3) he is convicted of an offence under section 14 or 15 or (4) he becomes bankrupt or a receiver is appointed for him on behalf of the court or (5) the Minister of Transport finds that the member has lost the physical or mental capacity to carry out his functions or (6) it is found that he has been absent from three con­ secutive meetings of the Council or from five meetings within a year unless the Minister of Transport states by notice to the Council that there was justifiable cause for his absence or (7) he is permanently unable to carry out his functions and the Minister of Transport removes him from office by written notice after consultation with the chairman of the Council or (8) he ceases to be an Israeli national or (9) being a State employee, he retires from the State Service. (b) Where a member of the Council ceases to carry out a function in the State Service or in any other service which, he carried out at the time of his appointment, the Minister of Transport may remove him from office.

12. Where a criminal charge has been filed against a member Suspension, of the Council in respect of an offence involving moral turpitude, the Minister of Transport shall suspend him from office. The period of suspension shall end not later than the date of the determination of the case.

13. (a) Where a member of the Council has died or has ceased Appointment of to hold office under section 11, the Minister of Transport shall Z^oZy0' appoint another person in his stead in the same manner in which substitute, that member was appointed under section 8. (b) Where a member of the Council is temporarily unable to carry out his functions, including suspension under section 12, the Minister of Transport may appoint a person to act for him until he resumes his functions.

231 Prohibition of 14. (a) A member of the Council or a body corporate under trails actions with Authority, his control shall not enter into a transaction with the Council, other than a transaction for the receipt of services provided by the Authority, save by permission granted by the Minister of Transport, and on conditions prescribed by him, with the approval of the Government. (b) Notice of permission under subsection (a) shall be published in Reshumot.

Duty to 15. (a) A member of the Council who has or is likely to have, disclose interest in transaction. directly or indirectly, by himself or through his spouse, agent or partner, any share or interest in any transaction or matter due to be considered by the Council and who knows of such share or interest — (1) shall notify the chairman of the Council of the fact, in such manner and on such conditions as shall be specified by regulations, immediately after becoming aware that the transaction or matter is due to be considered; (2) shall not be present at the deliberations of the Council on the transaction or matter and shall not participate in a decision relating thereto or connected therewith. (b) Nothing provided in subsection (a) shall derogate from the provisions of section 14. (c) A transaction or matter of a public body or Government company represented by the member concerned shall not be regarded as a transaction or matter to which subsection (a) applies.

Remuneration. 16. (a) A member of the Council shall receive no salary for his services, but he shall be entitled to receive his actual expenses, provided that they do not exceed the rates prescribed by the Council with the approval of the Minister of Transport. (b) Notwithstanding the provisions of subsection (a), the Minister of Transport may, in consultation with the Minister of Finance, direct the grant of a reasonable remuneration to the chairman, deputy chairman or vice-chairman of the Council and, if he sees - • special reasons for doing so, to a member of the Council who performs the function of chairman of a committee established by it, provided that he has first prescribed by order, in consultation as aforesaid, the maximum rate of remuneration payable to a person performing the function referred to. (c) Notice of the grant of remuneration under this section shall be published in Reshumot.

232 17. Where a member of the Council becomes aware of any act Duty to give or omission of the Authority, of any of its organs or employees, in of a person acting in its name or of a member of any such organ as aforesaid, which prima facie involves an offence or a breach of ethics, he shall bring the matter without delay to the knowledge of the chairman of the Council or the Minister of Transport.

18. (a) The Council shall prescribe the methods of its work Rules of and the procedure of its deliberations in so far as they are not Procedure• prescribed by or under this Law. (b) The quorum at meetings of the Council shall be a majority of the members including the chairman, deputy chairman or vice-chairman. If there is no quorum at the opening of a meeting, the chairman, deputy chairman or vice-chairman may postpone the meeting for thirty minutes. After this interval, the meeting shall be legal if one third of the number of members, besides the chairman, deputy chairman or vice-chairman, participate. (c) Where a meeting of the Council has been opened with a quorum as provided in subsection (b), its continuation shall be legal with any number of members present, provided that one third of the members of the Council, besides the chairman, deputy chairman or vice-chairman, are present when resolutions are passed. (d) Where the Council deems it appropriate in view of the urgency of the matter, it may pass a resolution by a poll of its members in the manner and on the conditions prescribed by regulations with the approval of the Economic Committee of the Knesset. A resolution passed as aforesaid shall be treated as a resolution passed at a meeting of the Council. (e) At the request of the Minister of Transport, the Council shall reconsider any subject it has decided upon. (f) The Director of the Authority shall take part in the meetings of the Council.

19. (a) Meetings of the Council shall be held at least once in Meetings of six weeks, or at the request of the Minister of Transport or of Counci1• three members of the Council. (b) If the chairman of the Council is requested to convene it under subsection (a), the Council shall meet within fourteen days from the date of the request unless he is requested to convene it within a shorter period, and at that meeting the Council shall deal with the subjects specified in the request.

233 (c) The chairman of the Council shall call its meetings and shall prescribe the time, place and agenda thereof subject to the provisions of this chapter. (d) A resolution of the Council passed at a meeting held at the request of the Minister of Transport shall be brought to his knowledge without delay.

Power to 20. The Council may appoint permanent and ad hoc committees appoint committees. from among its members or otherwise. The findings of a committee shall be regarded as recommendations to the Council unless the Council otherwise decides. Where the Council delegates any of its powers to a committee appointed as aforesaid, a member of the Council shall be the chairman of the committee.

Validity 21. The existence, powers and validity of acts of the Council of acts. shall not be affected by the place of a member falling vacant or his appointment or continued tenure being defective.

Chapter Three: Employees of Authority

Director-General 22. (a) The Council shall with the approval of the Government, manag6^101116 uPon tne proposal of the Minister of Transport made after con• sultation with the Council, appoint a Director-General for the Authority (hereinafter referred to as "the Director of the Authority"). The Council shall with the approval of the Government prescribe the salary and terms of employment of the Director of the Authority. (b) The Council shall, with the approval of the Minister of Transport and after the recommendation of the Director of the Authority has been brought before it, appoint the managers of the aerodromes of the Authority. (c) Notice of the appointment of the Director of the Authority and of the managers of the aerodromes of the Authority shall be published in Reshumot.

Period of 23. (a) The period of tenure of the Director of the Authority tenure of Director of shall be five years, but the Council may, upon the proposal of Authority. the Minister of Transport, extend his tenure for a further such period after the Minister of Transport has given advance notice to the Government. (b) The tenure of the Director of the Authority shall ter• minate if —

234 (1) he resigns by written notice to the Minister of Trans­ port submitted through the Council or (2) the Minister ..of Transport, after, consultation .with .the Council, finds that the Director of the Authority is per­ manently unable to carry out his functions or decides, by reasoned decision, to remove him from office. (c) If the Director of the Authority resigns, his tenure shall cease upon the expiration of thirty days after submission of the letter of resignation unless the Minister of Transport agrees to a shorter period.

24. (a) The Council shall, upon the proposal of the Minister of Deputy Director •ty״Transport made after consultation with the Council, appoint a of Autho Deputy Director of the Authority, who shall carry out the functions and exercise the powers of the Director of the Authority so long as the latter is for any reason unable to do so. If no Deputy Director has been appointed or the Deputy Director is also unable to carry out such functions and exercise such powers, the chairman of the Council shall act as Director of the Authority. (b) The appointment of a Deputy Director of the Authority shall be brought to the knowledge of the Government, and notice thereof shall be published in Reshumot.

25. (a) The procedures for the engagement and appointment of Engagement the employees of the Authority shall be the same as those for employment the engagement and appointment of State employees, with such of employees, modifications as the Authority may prescribe with the approval of the Government. (b) The terms of employment and wages of the employees of the Authority shall be prescribed by agreement between the Authority and the employees' organisation representing the greatest number of employees of the Authority and with the approval of the Government. (c) The Council may, with the approval of the Ministers of Transport and Finance and after bringing the matter to the notice of the Economic Committee of the Knesset, prescribe posts and categories of posts to which the provision of subsection (b) shall not apply.

26. (a) State employees who immediately before the coming into Transfer of force of this Law were employed in one of the services which Xuthorfty l° have passed to the Authority shall continue in that service as

235 employees of the Authority on conditions of service not less favourable than their conditions of service were immediately before the coming into force of this Law. (b) Such rights of employees of the Authority transferred to its service as arise out of their employment as State employees shall be deemed to be rights arising out of employment in the service of the Authority. (c) Arrangements for crediting the Authority with the amounts of the payments to which employees transferred to it's service will be entitled shall be laid down by agreement between the Authority and the Government.

Chapter Four: Powers of Authority

Powers under 27. At the request of the Authority, the Minister of Transport Laws.NaV'8atl0n may delegate to it, its Director or any of its employees his powers under the Air- Navigation Laws, and the regulations .,made thereunder as to any matters relating to the aerodromes of the Authority and their operation, except the power to make regulations with legislative effect.

Regulations 28. (a) The Authority may propose to the Minister of Transport under Air Navigation to make regulations by virtue of his powers under the Air Navigation Laws. Laws as to any matters relating to the aerodromes of the Authority and their operation. (b) The Minister of Transport shall consult with the Authority before making regulations under the Air Navigation Laws in matters relating to its aerodromes.

Scales of 29. (a) The Authority may propose to the Minister of Transport fees' regulations as to the scales of fees payable to it or to others for the use of its aerodromes and the installations therein and for the services provided therein by it or by others and as to procedure for collecting and paying the same. The Minister of Transport may make such regulations as aforesaid even if they have not been proposed to him by the Authority, provided that he has first consulted with the Authority. All regulations under this section require the approval of the Government and the Economic Com• mittee of the Knesset. (b) The scales of fees may be comprehensive or classified in any manner whatsoever.

236 (c) The scales of fees shall be prescribed with reference to the directives set out in sections 7 and 40. (d) The provisions of this section shall not be construed as derogating from the power of the Authority to provide a service and to charge a fee for it even if a fee for that service is not prescribed by regulations, so long as no statutory duty exists to provide that service.

30. (a) The Authority may, with the approval of the Minister Power to of Transport, prescribe rules for the maintenance, management, Prescribe rules- operation and supervision of the aerodromes of the Authority and for the efficient exercise of its functions and powers under this Law. (b) The Minister of Transport may request the Authority to prescribe rules on a subject defined in the request. If the Authority does not transmit the rules for the approval of the Minister within a period prescribed by him, being not less than ninety days from the date on which it is requested to do so, the Minister may prescribe the rules in its stead.

31. (a) The Authority may charge another with carrying out Performance any of its functions, or providing a service, as specified in section 5; an¿ serviCes. but it shall not do so with regard to any matter relating to the" safety or security of aviation, or the security of the aerodromes of the Authority, save with the approval of the Minister of Transport. (b) The Authority may, with the approval of the Minister of Transport, prescribe arrangements and set conditions for the pro• vision of services either by itself or through others, including contractual arrangements assigning the performance of a service to others after inviting tenders. (c) The Authority may, after inviting tenders, grant a con• cession for the provision of a service which it is required or authorised to provide at its aerodromes or at one of them. (d) A contractual arrangement assigning the performance of a service to another under subsection (a), and the charging of another with a function of the Authority, for a period exceeding ten years require the approval of the Government. (e) A contractual arrangement assigning. the performance of a service to another, or the charging of another with a function of the Authority, which confers a right to renew or extend it for an additional period which together with the original period exceeds ten years, as well as a contractual arrangement or charging as

237 aforesaid for an additional period as aforesaid, require the approval of the Government. (f) A contractual arrangement assigning the performance of a service to another under subsection (a), or the charging of another with a function of the Authority, by way of granting a concession require the approval of the Government; but this provision shall not apply to the grant of a concession for the performance of such classes of concomitant services referred to in section 5 (a) (1) as the Government may designate for this purpose.

(g) A contractual arrangement assigning the performance of a service to another, or the charging of another with a function of the Authority, for which the approval required by this section has not been received is invalid.

Restriction 32. (a) A transaction within the meaning of section 6 of the

as to land 1 transaction. Land Law, 5729 — 1969 X in land of the Authority, other than a lease thereof for a period not exceeding twenty-five years, requires the approval of the Government. (b) A lease of land with an option to extend it to a total period exceeding twenty-five years and a lease the period of which is wholly or in part subsequent to the passage of twenty-five years from the completion of the lease contract require the approval of the Government. (c) A land transaction for which the approval required by this section has not been received is invalid.

Lien on goods. 33. The Authority shall have a lien on all goods in its possession for which any fee or other payment is due to it. The lien shall also vest it with a priority right to collect the debt out of the proceeds of the sale of the goods in precedence to any other priority right in respect of those goods. The provisions of this derogate . from . any . provision -of the Customs ׳ section shall . not Ordinance 2).

1) Sefer Ha-Chukkim of 5729, p. 259; LSI vol. XXIII, p. 283. 2) Dinei Medina( Yisrael (Nusach Chadash) No. 3, p. 39; NV vol. I, p. 51.

238 Chapter Five: Management of the Authority and of Its Aerodromes

34. (a) The Authority shall define the functions of the Director Definition of of the Authority and of the managers of its aerodromes. delegation of (b) The Authority may delegate any of its powers to the powers. Director of the Authority or to any manager of an aerodrome thereof, except the power to prescribe rules, budgets and development schemes under sections 30 and 37, the power to draw up annual reports under section 38, the power to appoint the Director of the Authority and the managers of the aerodromes under section 22 and the powers conferred by section 25. The Authority may also delegate powers to another to the extent required for the carrying out of his functions under this Law or any other law. (c) In defining functions and delegating powers under this section, the Authority shall vest the managers of its aerodromes with the powers necessary to maintain, manage and operate them. (d) A delegation of powers under subsection (b) for the purposes of sections 28 and 29 shall require the approval of the Minister of Transport.

35. The Authority may give the Director of the Authority or Power to sign, any other person power of attorney to sign in its name documents generally or a particular document or class of documents, subject to any restriction indicated in the power of attorney.

36. Subject to the provisions of section 34 and to the decisions Responsibility of the Authority and its Director, aerdrome managers shall be managers™"16 responsible to the Director of the Authority, each in respect of the aerodrome managed by him, for the carrying out of the functions and decisions of the Authority.

Chapter Six: Budget and Finance

37. (a) The Authority shall by the 31st October in every year, Budgets and prepare, and submit to the Minister of Transport for approval, schemed a budget for its ordinary activities, as well as a scheme and budget for the development of each of its aerodromes, all in respect of the business year beginning on the 1st April next following. Each development scheme or development budget shall specify the modes of financing it.

239 (b) A development scheme and development budget, as well as an ordinary budget the expenditure of which is not fully covered by the revenue of the Authority, require the approval of the Government. (c) The Authority may, in addition to an annual scheme and budget, submit as aforesaid a development scheme and budget for several years. (d) A budget which does not require the approval of the Government under this section shall be brought to its knowledge. (e) Where in the implementation of an ordinary budget which did not require the approval of the Government under subsection (b) a deficit is created exceeding an amount determined by the Minister of Transport in consultation with the Minister of Finance or where in the implementation of an ordinary budget approved by the Government a deficit is created exceeding the deficit provided for in that budget, the Authority shall bring the fact to the knowledge of the Ministers of Transport and Finance not later than the expiration of that half of the business year in which it occurs.

Annual 38. The Authority shall not later than six months after the reports. expiration of its business year draw up and submit to the Minister of Transport a report containing — (1) an annual balance-sheet, including a balance-sheet of the funds referred to in section 40; (2) a report of revenue and expenditure, including the appro• priation of the revenue surpluses of the Authority and of each of its aerodromes; (3) a report of its resources and the manner of using the same; (4) a survey reflecting the implementation of the ordinary budget and development budget of the Authority in the business year; (5) a survey of its activities in the business year.

Reporting at 39. The Minister of Transport may at any time request of the request of Minister of Authority a report, as well as continuing or one-time information, Transport. on any matter within the scope of its functions and powers.

Funds. 40. The Authority shall create and maintain funds for the renovation of the structures, installations and equipment of its aerodromes, the development of such aerodromes, the expansion of services thereat and the payment of its debts.

240 41. The Authority may, subject to the provisions of any Law, Loans and receive loans for development purposes and issue for this purpose bonds. The loans and the conditions thereof shall require the approval of the Ministers of Transport and Finance. The issue and conditions of the bonds shall require the approval of the Government.

42. (a) All revenue received by the Authority shall be at its Use of rove n^i ^ disposal and shall, within the framework of its budget, be used for purposes determined by it with a view to carrying out its functions. (b) No amount of the moneys of the Authority shall be paid save under an approved budget and the Authority shall assume no liability save under a budget as aforesaid or under a resolution of the Council approved by the Minister of Transport.

Chapter Seven: Transfer of Assets, Rights and Liabilities

43. Subject to the conditions and restrictions prescribed under Transfer of section 46, the Government shall transfer to the Authority land Authority!0 of the State which immediately before the coming into force of this Law was in the area of the aerodromes of the Authority and all movable property of the State which immediately before the coming into force of this Law was at the disposal of the aerodromes of the Authority, as well as every right or interest the State had at that time in any of the aerodromes of the Authority, including shares in any body corporate operating at an aerodrome of the Authority services which the Authority is required or authorised to provide under section 5 and the operation of which is the principal object of such body corporate.

44. (a) The Government shall transfer to the Authority every Transfer of right and power of the State under agreements, contractual arrange- obHgaUons. ments and transactions which were in force in respect of the aerodromes of the Authority immediately before the coming into force of this Law, and from the date prescribed in the instrument of transfer all such rights and powers as aforesaid shall vest in the Authority, and the obligations and liabilities imposed on the State by those agreements, contractual arrangements and transactions or in connection with the property transferred under section 43 or the operation of any of the aerodromes of the Authority shall

241 fall on the Authority, which shall with regard thereto take the place of the State in all respects. (b) The Government shall transfer to the Authority all the amounts appropriated to the aerodromes of the Authority, as prescribed in the ordinary budget and development budget in respect of each aerodrome, by the termination of the financial year in which the date of the coming into force of this Law falls. (c) Until the termination of the financial year in which the date of the coming into force of this Law falls, the budgetary framework for the activities of the Authority shall be as prescribed in the State Budget for that year, with such modifications as result from the establishment of the Authority.

Actions and 45. Every action which immediately before the coming into force causes of action. of this Law was pending on behalf of or against the State in connection with the property, agreements, contractual arrangements, transactions or operation of any of the aerodromes of the Authority, as referred to in sections 43 and 44, as well as every cause of action in this connection which existed at that time shall subsist as if the transfer had not been made.

46. (a) The conditions of the transfer referred to in sections 43 Conditions and 44 and the particulars of the assets, rights and interests of transfer. shall be determined by agreement between the Authority and the Government with the approval of the Economic Committee of the Knesset. The conditions of the agreement shall not conflict with the directives set out in sections 7 and 40. (b) Where any amounts were made available by the Treasury for development purposes to the aerodromes transferred to the Authority by this Law, with the stipulation that they should be repaid to the general revenue of the State, such amounts shall, to the extent that they had not been repaid immediately before the coming into force of this Law, be deemed to have been paid to the Authority, on the date of such coming into force, as a loan on conditions laid down in the agreement referred to in subsection (a).

Chapter Eight: Miscellaneous Provisions

Supervision of 47. (a) The Authority shall be under the general supervision

Authority. QJ ^ Minister of Transport. (b) In carrying out its functions under section 5 (a) (2), the

242 Authority shall act under the directions of the Minister of Transport, to be issued to it after consultation with the Council.

48. The Authority shall, for the purposes of the payment of Taxes, taxes, stamp duty, fees, rates, charges and other compulsory pay­ ments, be treated like the State.

49. The Authority shall, for the purposes of the Civil Wrongs Liability (Liabilit(Liabi y of the State) Law, 5712 —19521). be treated like the in tort• State.

50. The Authority shall, for the purposes of relief by way of Injunction, injunction, be treated like the State.

51. The members of the Council and employees of the Authority Status of shall, for the purposes of the following enactments, be treated countiPand like State employees: employees of (1) the Penal Law Amendment (Public Servants) Law, 5717— Authority• 1957 2); (2) the Evidence Ordinance (New Version), 5731 — 1971 3); (3) the Civil Wrongs Ordinance (New Version) *),

52. (a) The State Service (Discipline) Law, 5723 — 1963 5), shall Discipline, apply to employees of the Authority as if they were State employees; for this purpose, every reference in the said Law to the Minister shall be deemed to be a reference to the Minister of Transport and every reference to the Director-General of the Ministry shall be deemed to be a reference to the Director-General of the Authority.

52. On the date of the coming into force of this Law, the Boundary boundaries of the aerodromes specified in the Schedule shall be maps' as delineated by the Minister of Transport on maps deposited i) Sefer Ha-Chukkim of 5712, p. 339; LSI vol. VI, p. 147. .Sefer Ha-Chukkim of 5717, p. 88; LSI vol. XI, p. 89 (־ *) Dinei Medinat Yisrael (Nusach Chadash) No. 10, p. 266; NV vol. II, p. 5. *) Dinei Medinat Yisrael (Nusach Chadash) No. 18, p. 421; NV vol. II, p. 198. 5) Sefer Ha-Chukkim of 5723, p. 50 — LSI vol. XVII, p. 58.

243 with the Head of the Civil Aviation Administration in the Ministry of Transport before that date.

Offences and 54. A person who contravenes the provisions of section 14, 15 penalties. or 17 or any regulations or rules under this Law which provide that non-compliance with them shall be an offence shall be liable to imprisonment for a term of one year or a fine of 100,000 pounds.

Variation of 55. (a) The Minister of Transport may by order, in consultation

Schedule. ^ £oxmc^ acj(j an aerodrome to, or remove an aerodrome from, the list appearing in the Schedule. If he removes an aerodrome from the Schedule, he shall bring the fact to the knowledge of the Economic Committee of the Knesset.

(b) If the Minister of Transport removes an aerodrome from the Schedule by virtue of this section, the Government may, if it deems it just so to do, direct that the whole or part of the property of the Authority used for that aerodrome shall be vested in the State, with or without consideration, at such times and on such conditions as it may prescribe. Property vested as aforesaid shall be registered in the name of the State in every register kept under any enactment. (c) If the Minister of Transport adds an aerodrome to the Schedule, the provisions of section 26 and of Chapter Seven shall apply as if the date of the coming into force of this Law had been replaced by the date of the coming into force of the order by which the aerodrome is added to the Schedule.

Amendment of 56. In section 31 (1) of the Air Navigation Law, 1927, the definition LawNaVi8ati°n of "aerodrome" shall be replaced by the following definition:

" "Aerodrome" means an aerodrome, within the meaning of the Aerodromes Authority Law, 5737 — 1977, which is in the possession and under the management of the State or of the Aerodromes Authority referred to in that Law.".

Implementation 57. The Minister of Transport is charged with the implementation and regulations. of this Law and may, with the prior knowledge of the Economic Committee of the Knesset, make regulations for its implementation in regard to any matter which this Law does not expressly empower the Authority to regulate.

244 58. This Law shall come into force upon the expiration of Commencement, ninety days from the date of its adoption by the Knesset.

59. This Law shall be published in Reshumot within fifteen days Publication, from the date of its adoption by the Knesset.

SCHEDULE (Section 5 (a) (1)) Ben-Gurion Airport Eilat Aerodrome Jerusalem (Atarot) Aerodrome

YITZCHAK RABIN GAD YAACOBI Prime Minister Minister of Transport

EFRAYIM KATZIR President of the State

245 (No. 73)

INCOME TAX ORDINANCE (AMENDMENT No. 25) LAW, 5737 — 1977 *

Amendment of 1. In section 1 of the Income Tax Ordinance1) (hereinafter

section 1. referred to as "the Ordinance") — (1) the following shall be added at the end of the definition of "income from personal exertions": "(5) a grant received in consequence of retirement or death; (6) an amount received in consequence of the capitalisation of any of the pensions referred to in paragraphs (1) to (4);"; (2) the words "as well as certificates of participation therein" shall be added at the end of the definition of "preferred loans".

Amendment of 2. In section 3 (h) of the Ordinance, in paragraph (1), the words section 3. "other than exemption granted on the interest itself, credit" shall be inserted after the words "right to any exemption" and the following shall be added at the end: "This provision shall not apply to that part of accumulated interest received by a particular benefit fund which accumulated in the hands of other benefit funds, so long as there is continuity in the sale by one benefit fund to another; for this purpose, "benefit fund" means a benefit fund exempt from tax under section 9 (2)".

Amendment of 3. In section 8 of the Ordinance — sectI0n ' (1) in subsection (b), the words "a capital profit to which section 102 applies or to" shall be deleted; (2) subsection (c) shall be re-marked as subsection (d) and the following subsection shall be inserted before it: "(c) On the application of the assessee or his heirs, the following income shall, for the purpose of calculating the amount of tax leviable thereon, be deemed to have been received as stated hereunder:

* Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 860 of the 12th Nisan, 5737 (31st March, 1977), p. 194; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1268 of 5737, p. 38. *) Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120 — NV vol. I, p. 145; Sefer Ha-Chukkim of 5736, p. 156; LSI vol. XXX, p. 153.

246 (1) wage differentials — in the years to which they relate, but not more than six tax years, ending with the year in which they were received; (2) leave compensation received by an employee — in equal annual portions during a period not exceeding six tax years, ending with the year in which it was received, or the years of his employment, whichever is less; (3) income from personal exertions, within the meaning of paragraph (5) or (6) of the definition of this term in section 1 — in equal annual portions in the years of employment for which the grant is paid or in the period in which the right to the pension accrued, as the case may be, but not in more than six tax years ending with the year in which the grant or the capitalised pension was received; however, the Com• missioner may, if requested to do so, permit an apportionment over a different period, including future years, on such conditions, including an advance pay• ment, as he may prescribe."; (3) in subsection (d), the words "or section 9A (d)" shall be inserted after the words "under this section" in the opening passage, and the following shall be added at the end: "Provided that if the assessee duly made an advance payment under subsection (c) (3) or section 9A (d) or, if tax was deducted at source under subsection 164, the amount of the advance payment made, or of the tax deducted, relating to years subsequent to the death, shall be regarded as the amount of tax due".

4. In section 9 of the Ordinance — Amendment of section ^ (1) in paragraph (5), the opening passage shall be re-marked as paragraph (5) (a) and the following subparagraph shall be inserted thereafter: "(b) where the income from personal exertions of any such blind person or invalid as aforesaid is less than 36,000 pounds or where he had no such income as aforesaid, his income other than from personal exertions shall also be exempt from tax up to an aggregate amount of 36,000 pounds;";

247 (2) the following paragraphs shall be inserted after paragraph (6): "Sums for the (6A) sums which a person crippled in maintenance of a ! • j ! ! vehicle for a tne ^eSs receives under law for the main- person crippled tenance of his vehicle; in the legs.

Pensions of (6B) pensions which the State pays in G^vernmentof consequence of employment by the Gov- Palestine. ernment of Palestine;"; (3) (a) in paragraph (7A) (a), the following items shall be added after item (3): "(4) (a) where upon retiring from employment with a particular employer an employee has money in• tended for a retirement grant standing to his credit with a compensation benefit fund or receives a retirement grant, and at the time of his retirement he notifies the Commissioner that he opts for the application of the provisions of this item, the sums he leaves with the compensation benefit fund, or deposits with such a fund immediately upon his retirement, shall not be regarded as received by him if within one year from his retirement he begins to work for another employer, who makes payments for compensation into that fund on his behalf; (b) where the requirements of subitem (a) are fulfilled, and the employee subsequently retires from employment with another employer without the requirements of subitem (a) being fulfilled (such employer hereinafter referred to as "the last employer"), items (1) to (3) shall apply to him subject to the following provisions: (i) the periods of employment with different employers which involved consecutive retire• ments as specified in subitem (a) shall be combined and he shall be deemed to have worked for the last employer during all the said years of employment; (ii) any amounts standing to his credit with the compensation benefit fund at the time of his retirement from employment with the last employer which derive from grants-upon-retire- ment referred to in subitem (a), including in- terest, linkage differentials and other profits therefrom (all these hereafter in this item col­ lectively referred to as "profits-from-a-grant") shall be regarded as part of the retirement grant from the last employer; (c) an employee who at the time of his retirement as referred to in subitem (a) ,receives part of the retirement grant accumulated in his favour shall be liable to tax on the amount received; (d) an employee who has opted for the application of the provisions of this item may revoke his option within two years, and if he does so, the profits- from-a-grant shall be regarded as part of the grant; subject as aforesaid, any amount which he with­ draws from a compensation benefit fund before his retirement from employment with the last em­ ployer and which derives from retirement benefits as referred to in subitem (a) and the profits there­ from, shall be liable to tax; (5) notwithstanding the provisions of section 164, a person who pays a retirement grant exempt under item (4) shall be exempt from the duty of deduction of tax, provided that he has received the approval of the Commissioner or a person empowered by him in that behalf;"; (b) in paragraph (7A), the following subparagraph shall be added after subparagraph (/): "(g) subject to the provisions of subparagraph (a) (4) (a), a capital grant in consequence of retirement or a capital grant in consequence of death shall be regarded as received even if it remains deposited with a benefit fund; this provision shall not apply to sums standing to the credit of a retired employee with a compensation time of-retirement he notifies ־ benefit fund if at the the commissioner that he wishes to leave them there for the purpose of the payment of a pension; where, having so notified, he subsequently withdraws the moneys otherwise than as a pension, then, subject to paragraph (17), the whole amount, including interest, interest differentials and other profits therefrom, shall be regarded as a retirement grant;"; (4) the words "exemption under this paragraph shall not apply to exchange rate differentials which are themselves income of such individual under section 2 (1)" shall be added at the end of paragraph 14 (b); (5) in paragraph (19) — (1) the words "and the premium for whose insurance has not been permitted to the insurer as an expense" shall be added at the end of subparagraph (1); (2) in subparagraph (2), the expression "or (17)" shall be inserted after the expression "paragraph (7A)"; (6) in paragraph 20 — (1) the marginal note shall henceforth read "Reductions and gifts obtained by employee from employer"; (2) the -following. subparagraph shall be added at the end: "(c) gifts received by an employee from his employer of an aggregate value not exceeding 175 pounds in any one year;"; (7) the following paragraphs shall be added at the end:

"Maintenance (22) a maintenance allowance received by allowance. a divorced woman from her husband or received by a wife from her husband from whom she lives separately or a maintenance allowance for children which a woman re• ceives from their father or a payment re• ceived by a woman from the National Insurance Institute under the Maintenance (Assurance of Payment) Law, 5732 — 19721X including a payment in respect of her children;

Amounts under (23) (a) a proportion of a pension received living legacy agreement. by a person under an agreement for the bequest of a living legacy to the Keren Kayemet le-Yisrael, the Keren Hayesod—United Israel Appeal or any other institution designated by the Minister of Finance, as follows: (1) if the person who bequeathed the living legacy had not yet com- i) Sefer Ha-Chukkim of 5732, p. 87; LSI vol. XXVI, p. 103. pleted his fiftieth year at the time of the bequest — 50 p.ct.; (2) if the person who bequeathed the living legacy had completed his fiftieth but not his sixtieth year at the time of the bequest — 60 p.ct.; (3) if the person who bequeathed the living legacy had completed his sixtieth but not his seventieth year at the time of the bequest — 75 p.ct.; (4) if the person who bequeathed the living legacy had completed his seventieth but not his eightieth year at the time of the bequest — 80 p.ct.; (5) if the person who bequeathed the living legacy had completed his eightieth year at the time of the bequest — 90 p.ct.; (b) exemption under subparagraph (a) is in lieu of exemption under section 9B, and the person who bequeathed the living legacy shall not by reason thereof be entitled to any credit or deduction.".

5. In section 9A of the Ordinance, the figure "2,800" shall Amendment of wherever appearing be replaced by the figure "4,800", and the sectlon 9A• figure "28" in subsection (b) shall be replaced by the figure "48".

6. In section 17 of the Ordinance, paragraph (12) shall be re- Amendment of marked as paragraph (14) and the following paragraphs shall be sectl0n 17- inserted before it:

"Rent paid by (12) rent paid by an employee, for a dwelling rented temporarily transferred by him in Israel in a place to which he has been employee. transferred in connection with his functions, in the course of one year from the day on which he was transferred as aforesaid; this rent shall only be deductible from the rent he receives for the letting of his permanent dwelling during the same period;

251 Lodging (13) (a) sums paid by an assessee for lodgings or expenses and rent in the lease of a dwelling in an area defined as a development development area under section 11 in which he works permanently but in which he does not live with his family, with whom he would live if he did not work there; (b) the Minister of Finance may prescribe the ceiling of the amount deductible under sub• paragraph (a) and the period of deduction;".

Amendment of 7. In section 19 (a) of the Ordinance, in the definition of "preferred section 19. loans", the word "linked" shall be inserted before the words "preferred loans".

Addition of 8. The following section shall be inserted after section 19 of section 20. the Ordinance:

"Power to 20. The Minister of Finance may, with the approval prescribe rules for certain of the Finance Committee of the Knesset, prescribe deductions. rules — (1) as to the deduction of the whole or part of the sums indicated hereunder, and the period and annual rate of such deduction: (a) sums which the owner of a building let wholly or in part under a protected lease has paid in respect of the evacuation of a protected tenant or as a contribution to the construction of the pavement or road near the building or the drainage connected to the building or the like; (b) sums which the tenant (hokher, i.e. lessee for a period of more than five years — Tr.) of any immovable property has paid in respect of the tenancy thereof or in respect of an investment, therein, or in connection therewith;' (2) as to the grant of additional depreciation in respect of a building let wholly or in part under a protected lease, the rate thereof and the period of the grant thereof; (3) as to the deduction of the undeducted balance of the original price of a wholly or

252 partly uprooted plantation where its owner planted a new plantation either before or after the uprooting, :..and-as* to. dealing with the deduction in determining the original cost for the purposes of depreciation and for the pur­ poses of capital profit on the new plantation.".

9. In section 21 of the Ordinance — Amendment of section 21 (1) in subsection (a), the words "For the purposes of this section, the tenancy of immovable property for a period of forty-nine years or more shall be treated as ownership thereof" shall be added at the end; (2) in subsection (b), the words "both for this purpose and for the purposes of section 88" shall be inserted after the words "the original cost of the property". 10. In section 23 of the Ordinance, the words "But allowances for Amendment of depreciation and wear and tear in the period preceding the year sectlon 23- 1950 shall not be taken into account for the purposes of the original cost of a citrus plantation" shall be added at the end.

11. In section 28 of the Ordinance, subsection (h) shall be re- Amendment of marked as subsection (i) and the following subsection shall be sectlon 28, inserted before it: "(h) A loss incurred by any person from the letting of a building may be set off against his income from that building in subsequent years.".

12. In section 32 (10) of the Ordinance, the words "except Amendment of 32׳ premiums as aforesaid paid to a benefit fund under a scheme sectlon approved by the Commissioner by direction under paragraph (9)" shall be added at the end of subparagraph (a).

13. In section 35 of the Ordinance — Amendment of (1) subsections (b) and (c) shall be re-marked as subsections (c) sectlon 35- and (d) and the following subsection shall be inserted before it: "(b) Where the chargeable income of an individual includes income of his wife who is an olah and the tax on their income is calculated jointly, then, in calculating his tax, the credit points under subsection (a) shall be brought into account: Provided that if the income of the wife does not exceed

253 four times the amount of the credit points referred to in subsection (a) and section 38, her income shall not be included in calculating the chargeable income of her husband and the said credit points shall not be brought into account in calculating his tax."; (2) the following subsection shall be added at the end: "(e) Notwithstanding the provisions of subsection (c), the Minister of Finance may, with the approval of the Finance Committee of the Knesset, prescribe — (1) rules for the grant of credits under subsection (a) to a person who at one time came within the definition of "oleh"; (2) either generally or in respect of particular cases — other provisions as to the commencement of the forty-two-month period and the interruption of its continuity.".

Amendment of 14. In. section 38 (a) of the Ordinance, the words "including income section 38. from personal exertions within the meaning of paragraphs (1) to (6) of the definition of that term in section 1" shall be inserted after the words "or is work income".

Addition of 15. The following section shall be inserted after section 40 of section 40A. the Ordinance:

"Credit point 40A. In calculating the tax of a divorced man for divorced man who has who pays maintenance to his former wife and remarried. who has remarried, one credit point shall be brought into account."

Amendment of 16. In section 44 of the Ordinance, the following subsection shall section 44. be added after subsection (c): "(d) Where within the tax year an individual resident in Israel, for the purpose of medical treatment abroad of himself or a family member in respect of whom he is entitled to credit points under section 37 or pension points under section 40, makes payments in respect of travel and stay — (1) of himself or' the family member; (2) of an escort for himself or the family member, (such payments hereinafter referred to as "payments"), the payments shall be regarded as expenses for medical treatment under subsection (a), provided that the Director-General of

254 the Ministry of Health or a person empowered by him in that behalf has certified the necessity of receiving the treatment abroad and, in so far as payments for an escort are concerned, the need for an escort.".

17. The following section shall be inserted after section 44 of Addition of .section 45 ., ״ the Ordinance:

"Credit in 45. In calculating the tax of an individual resident ear nacl a completely׳{ pereons unable in Israe^ wno m me tax to support paralysed, permanently bedridden, blind or mentally themselves. unsound wife or parent or a paralysed, blind or retarded child, one credit point shall be brought into account.".

18. In section 47 of the Ordinance — Amendment of 47־ in subsection (a) (1), the figure "50,000" shall be replaced sectlon (1) by the figure "80,000" and the words "work income being first taken into account" shall be replaced by the words "work income — other than income of a controlling member within the meaning of section 32 (9) (hereafter in this section referred to as a "controlling member") of a company from employment therein — being first taken into account"; (2) in subsection (b) (1), the words "or of his entitling income, being income from employment in a company of which he is a controlling member" shall be inserted after the words "work income"; (3) in subsection (b) (2), the words "— other than income of a controlling member of a company from employment therein —" shall be inserted after the words "work income".

19. In section 66 (a) of the Ordinance, the words "including Amendment of income from personal exertions within the meaning of paragraphs (1) sectlon 66- to (6) of the definition of that term in section 1" shall be inserted after the words "or from employment".

20. The following section shall be inserted after section 66 of Addition of ־the Ordinance: section 66A

"Income of 66A. Where a foster family receives income from

foster family. ^ Qr & authority in respect of the care of children referred to it, three quarters thereof

255 shall be regarded as income from the personal exertions of the wife, and she or her husband may •demand-•,that-.a: separate-calculation shall be made in respect thereof under section 66.".

Amendment of 21. Section 67 of the Ordinance shall be re-marked as section 67 (a) section 67. and the following subsection shall be added thereafter: "(b) Notwithstanding the provisions of subsection (a), where any income is obtained from the personal exertions of the wife in an agricultural farm shared by the two spouses and it is proved that the husband works mainly outside the farm, three quarters of that income shall be regarded as income of the wife, and she or her husband may demand that a separate calculation shall be made in respect thereof under section 66.".

Amendment of 22. In section 88 of the Ordinance, in the definition of "cost price" — section 88. (1) the words "and for the purposes of section 21, the deduction of depreciation shall be allowed as if the property had not been disposed of by way of a gift" shall be added at the end of paragraph 3 (6); (2) the words "and for the purposes of section 21, the deduction of depreciation shall be allowed as if the property had not been disposed of by way of a gift" shall be added at the end of paragraph 3 (c) (ii); (3) the words "the said value shall also be the original price for the purposes of section 21" shall be added at the end of paragraph (4).

Addition of 23. The following section shall be inserted after section 94A of section 94B. the Ordinance:

"Inflationary 94B. (a) Subject to the provisions of subsection (c), surplus on sale of share. there shall, upon the sale of a share, be regarded as an inflationary surplus, in addition to what is referred to in paragraph (1) of the definition of "inflationary surplus", an amount equal to such part of the profits of the company available for distribution as bears to the whole of such profits the same proportion as the part of the seller of the share in the rights to the profits of the company bears to the whole of such rights; (b) For the purposes of subsection (a) —

256 (1) "profits available for distribution" means profits available for distribution ac• cumulated by the company from the tax year preceding the year of acquisition of the share until the expiration of the tax year preceding the year of sale thereof or, in the case of winding-up, until the date of commencement of the winding-up, but not earlier than seven years immediately preceding the year of sale or the year of commencement of the winding-up, all ac• cording to the balance-sheet of the com• pany for the end of the tax year preceding the year of sale or the date of commence• ment of the winding-up, as the case may be, and it includes capitalised profits; but amounts accumulated in a capital stabili• sation fund, within the meaning of sec• tion 53K of the Encouragement of Capital Investments Law, 5719— 1959 1). shall not come within the definition of "profits avail• able for distribution", and the amount of the profits available for distribution shall not exceed the amount of profits which became chargeable with tax, including appreciation tax, in the said period, less the tax thereon and dividend distributed therefrom and with the addition of the profits which would have been chargeable with tax as aforesaid had they not been exempted therefrom; (2) an increase of the part of the seller of the share in the rights to the profits of the company within the two years preceding the sale shall not be taken into account.

(c) The provisions of subsection (a) shall apply if the seller has presented to the Assessing Officer a calculation showing the profits available for distribution, within the meaning of subsection (b).".

Sefer Ha-Chukkim of 5719, p. 234; LSI vol. Xni, p. 258. Amendment of 24. In section 120A of the Ordinance, in the definition of "social section 120A. concessions", the words "the amount specified in section 9 (5) (b)" shall be inserted after the word "means" and the words "an entitling pension within the meaning of section 9A (a), the amount exempt under section 9A (b), the amount specified in section 9A (a)" shall be deleted, and the following definition shall be inserted after the said definition:

"entitling pension" has the same meaning as in section 9A (a), and it also means the amount exempt under section 9A (b) and the amount specified in section 9A (c)".

Amendment of 25. In section 120B of the Ordinance — section 120B. (1) in the opening passage, the words "and pension points" shall be replaced by the words "pension points and entitling pensions" and the words "and social concessions" shall be replaced by the words "social concessions and entitling pensions"; (2) the following shall be added at the end of paragraph (1): "provided that where the amounts are adjusted in October, the income ceilings and credit points for that year shall be the average of the amounts of the income ceilings and credit points for the beginning of the tax year and as adjusted in October.".

Amendment of 26. In section 191B (a) of the Ordinance, the words "including section 191B. a person who does not base" shall be replaced by the words "or does not base".

Amendment of 27. In section 192 of the Ordinance, the words "or linkage dif• section 192. ferentials and interest" shall be inserted after the words "the rate of interest" and the words "waive such interest or fine" shall be replaced by the words "waive such interest, linkage differentials and interest, or fine".

Amendment of 28. In section 48B of the Land Appreciation Tax Law, 5723— Land 1 Appreciation 1963 ), the expression "section 91 (a), (b) (d) and (e)" shall be Tax Law. replaced by the expression "section 91 (a) to (c) and (e) to (g)".

Transitional 29. An exemption which began to be granted ex gratia in respect provision. of sums received under a living legacy agreement shall continue

») Sefer Ha-Chukkim of 5723, p. 156; LSI vol. XVII, p. 193.

258 to be granted in accordance with the same principles as it was granted in the past.

30. The Minister of Finance may, with the approval of the Special Finance Committee of the Knesset, direct that expenses incurred before the 12th Av, 5735 (20th July, 1975) shall be permitted to be deducted if they are of the kind of expenses in respect of which it was usual to permit deductions ex gratia; and he may, with approval as aforesaid, direct that the deduction shall be made in the manner in which it was made before that date or in some other manner.

31. (a) Where, on the date of the coming into force of this Law, Temporary a person has not yet had an assessment for the tax year 1974 asTes'snients38 l° issued to him, then, notwithstanding the provisions of section 145, up to 1974. his chargeable income may be determined in accordance with rules prescribed by the Commissioner, indicating a coefficient for the calculation of the chargeable income in relation to income according to a previous assessment. The determination of a co• efficient exceeding the rate of increase of the consumer price index shall require the approval of the Finance Committee of the Knesset. Subject to the provisions of this section, a determination shall be treated as an assessment. •(b) A contestation of an assessment issued under subsection (a) shall be heard in consultation with a committee appointed by the Minister (hereafter in this section referred to as "the committee") unless the contestor applies for it to be heard only before the Assessing Officer because he has in his possession documents or evidence substantiating his contestation. (c) A contestation of an assessment for any of the tax years up to 1974 issued otherwise than under subsection (a) shall on the application of the contestor be heard in consultation with the committee. (d) Where a contestation under this section is filed by an assessee required to keep account-books in the tax year 1977, the Assessing Officer may refuse to invite the contestor to state his case unless, before the making of the order, he notified that he kept books. This provision shall only apply to orders issued up to the 18th Tishri, 5738 (30th September, 1977) unless the Finance Committee of the Knesset extends its application for a time prescribed by it or without a time-limit. (e) The committee shall be appointed generally or in respect

259 of a particular area or class of assessees. Notice of its appointment shall be published in Reshumot, (f) No part of the proceedings of the Committee nor any material delivered to one of the members by virtue of his member• ship shall be published, save in accordance with section 232 of the Ordinance.

Commencement 32. (a) Sections 1, 3, 4 (1), (2), (3) and (6), 4 (7) in respect of applicatfon.0 maintenance, 7, 8, 9 (1), 10, 13, 14, 19 to 22 and 26 shall apply from the tax year 1975 and section 11 shall apply in respect of a loss incurred in or after the tax year 1975. (b) Section 2 shall apply to interest and linkage differentials received from the 26th Tishri, 5736 (1st October, 1975) onwards. (c) Sections 5 and 18 shall apply from the tax year 1977: provided that the amounts shall be deemed to have been adjusted as from the 1st April of that year. (d) Section 12 shall have effect from the 19th Shevat, 5735 (31st January, 1975). (e) Sections 15 to 17, 24 and 25 shall apply from the tax year 1977. (f) Section 27 shall apply to linkage differentials charged under the Income Tax Ordinance (Amendment No. 22) Law, 5735 — 19751). (g) Section 28 shall have effect from the 12th Av, 5735 (20th July, 1975).

Publication. 33. This Law shall be published in Reshumot within fifteen days from the date of its adoption by the Knesset.

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Münster of Finance

EFRAYIM KATZIR President of the State

i) Sefer Ha-Chukkim of 5735, p. 168; LSI vol. XXIX, p. 215. (No. 74)

ENCOURAGEMENT OF CAPITAL INVESTMENTS (AMENDMENT No. 15) LAW, 5737 — 1977*

1. In the Encouragement of Capital Investments Law, 5719— Addition of 19591J (hereinafter referred to as "the principal Law") the following seven 6"C". chapter shall be inserted after Chapter Seven "B":

"Chapter Seven "C": Tax Benefits for Foreign-Investment Industrial Companies

Definitions. 53H. In this Chapter — "foreign investment" means an investment in foreign currency made directly or indirectly in a company by a non-resident, which vests in him some part of the share capital, including shareholders' loans, and some part of each of the following; rights to profits,, voting rights and the right to appoint directors (hereinafter referred to as "the rights"); for the purpose of a foreign investment — (1) a company controlled by a resident shall not be regarded as non-resident, but the Minister of Finance may prescribe that it shall be so regarded if it is controlled by a company the shares of which are negotiated on the Stock Exchange and its share capital held by non• residents and its liabilities to non-residents add up to not less than 75 per cent of the aggregate of its share capital and liabilities; (2) "foreign currency" has the same meaning as in section 56 (1) and (2) and includes Israeli currency which a foreign resident may lawfully convert into foreign currency; (3) "shareholder's loan" means a loan made

* Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Sefer Ha-Chukkim No. 860 of the 12th Nisan, 5737, p. 203; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1289 of 5737, p. 162. 1J Sefer Ha-Chukkim of 5719, p. 234 — LSI vol. XIII, p. 258; Sefer Ha- Chukkim of 5736, p. 284 — LSI vol. XXX, p. 277. to a company by a shareholder which is re• payable over a period of not less than three years; , "foreign-investment company" means a company the foreign investment in which vests in the investors more than 25 per cent of each of the rights and more than 25 per cent of the share capital, including shareholders' loans, pro• vided that the part of the share capital alone also exceeds 25 per cent; for this purpose, an indirect investment through a company shall only come within the definition of a foreign investment if effected through, a company which is also a foreign-investment company (herein• after referred to as "the investing company") and the following provisions shall apply to the said investment: (1) the amount to be taken into account for the purpose of determining the foreign invest• ment of the investing company in the share capital, including shareholders' loans, of a par• ticular company shall be such part of the investment of the investing company as bears to the entire investment thereof the same pro• portion as the foreign investment in the share capital thereof, including shareholders' loans, bears to the entire aforesaid share capital there• of; however, the amount to be taken into account as aforesaid shall not, together with the aggregate of other foreign investments of the investing company, exceed the foreign in• vestment in the investing company, computed according to the rate of exchange prevailing at the time the investment was made in the company concerned, with the addition of such part of the undistributed profits, including capi• talised profits, accumulated by the investing company as is equal to the part of foreign investors at the commencement of the tax year in the rights to the profits thereof; (2) the part to be taken into account for the purpose of determining the investing company's share of the rights in the company concerned shall be such part of its rights in that company as bears to the whole of such rights the same proportion as the rights of foreign investors in the investing company bear to the total of rights therein; "foreign-investment industrial company" means a foreign-investment company which is one of the following: (1) an industrial company as defined in the Encouragement of Industry (Taxes) Law, 5729 —1969 ^ (hereinafter referred to as "the Encouragement of Industry Law"); (2) a marine transport company to which section 49 (1) of the said Law applies; (3) a resident company of whose income at least 70 per cent is derived from leasing rental equipment within the meaning of section 40A;

"exchange-rate adjustment coefficient" for any tax year means the difference between the rate of exchange of the Israeli pound to the dollar of the United States at the end of the tax year and at the end of the base year, divided by the rate of exchange at the end of the base year; but where a special assessment period has been prescribed, then — (1) if it ends before the 31st December the exchange-rate adjustment coefficient shall be that of the tax year preceding the tax year to which the special period relates; (2) if it ends after the 30th December and before the 31st March, the exchange-rate adjustment coefficient shall be that of the tax year to which the special assessment period relates;

"base year" means — (1) in relation to depreciation — the tax

Sefer Ha-Chukkim of 5729, p. 232; LSI vol. XXIII, p. 253. year in which the asset was put into operation or, where more than a year elapsed from the date of the first payment for the asset until it was put into operation, the tax year preceding the tax year in which the asset was put into operation; for this purpose, several assets operated as one system during the same period of time shall be deemed to be a single asset put into operation upon commencement of the operation of the system; (2) in relation to a long-term loan — the tax year in which the loan was received; (3) in relation to current assets, current liabilities and profits — the year preceding the tax year;

"long-term loan" means a loan, other than a shareholder's loan, repayable over a period of not less than four years from the date on which it was received;

"current assets" and "current liabilities" have the meanings assigned to these terms by regu• lations;

"depreciation or amortisation adjustment" means the amount of depreciation or amortisation deductible in any tax year, multiplied by the exchange-rate adjustment coefficient;

"long-term loan instalment adjustment" means the instalments maturing within the tax year, multiplied by the exchange-rate adjustment co• efficient;

"current assets adjustment" means the amount of current assets at the end of the year preceding the tax year, multiplied by the exchange-rate adjustment coefficient;

"current liabilities adjustment" means the amount of current liabilities at the end of the year preceding the tax year, multiplied by the exchange-rate adjustment coefficient;

"profits adjustment" means the profits multiplied by the exchange-rate adjustment coefficient of the year preceding the tax year; for this pur• pose, "profits" means the aggregate of surpluses included in the equity, according to the com• pany's balance-sheet at the end of the year preceding the tax year, which are derived from profits available for distribution; other terms have the same respective meanings as in the Income Tax Ordinance1) (hereafter in this chapter referred to as "the Ordinance").

Eligibility 531. (a) As long as a company is a foreign-invest• ment industrial company, it shall upon its request be entitled to benefits under this chapter for ten years from the year it first receives the benefits, provided that it requests the benefits before the tax year 1981 and in the year in which it requests the benefits it possesses an industrial enterprise being an approved enterprise in respect of which, or in respect of the last enlargement of which, twelve or ten years, as provided in section 45, have not elapsed (such a company being hereinafter referred to as "an eligible company"). (b) No benefits shall be granted in any par• ticular tax year unless the returns and confirmations prescribed by regulations have been submitted.

Equity 53J. (a) For the purpose of ascertaining the taxable maintenance allocation, income of an eligible company, the deduction of an "equity maintenance allocation" shall be permit• ted. The equity maintenance allocation is the de• preciation or amortisation adjustment in the tax year concerned plus the current assets adjustment, less the long-term loan instalment adjustment matur• ing within the tax year and less the current liabilities adjustment and the exchange-rate differentials paid

Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120; NV vol. II, p. 145. to non-resident shareholders which are deductible under section 17 (1) of the Ordinance or under section 14 of the. Encouragement of Industry Law. (b) Where the equity maintenance allocation is negative, it shall be deemed to be income for that year in an amount not exceeding the equity maintenance allocation which was deductible by the company in the preceding two tax years; where the amount of the negative allocation exceeds the amount of the allocation which was deductible by the company as aforesaid, the excess shall be carried forward to the next two years in succession and be deducted from the equity maintenance allocation in those years. For this purpose, an allocation is negative when the aggregate of the long-term loan instalment adjustment, the current liabilities adjustment and the exchange-rate differen• tials, as stated in subsection (a), exceeds the aggregate of the depreciation or amortisation ad• justment and the current assets adjustment.

(c) A company which was an eligible company during only part of the tax year or special assess• ment period shall be entitled in that year to deduct as equity maintenance allocation the full deprecia• tion or amortisation adjustment allowed in that year, less the full long-term loan instalment adjustment for that year; but it shall only be entitled to deduct such part of the current assets adjustment, less the current liabilities adjustment and less the exchange-rate differentials deductible as stated in subsection (a), as bears to the whole thereof the same proportion as the number of whole months during which it was eligible bears to twelve.

Equity 53K. (a) The equity maintenance allocations in a func?tenanCe particular tax year plus the total allocations as aforesaid accumulated up to the preceding tax year, less the total of negative allocations in the years concerned, less the amounts distributed as bonus shares in those years and less the profits adjustment for those years, shall constitute the

266 "equity maintenance fund" for the end of that particular year. (b) The company shall make due disclosure in its financial statements of the amount of the equity maintenance fund at the end of the pre• ceding tax year and shall specify the changes which have occurred therein during the tax year.

Distribution 53L. A company which in a particular tax year of profits distributes profits from the equity maintenance from equity maintenance fund shall be liable in that year to pay the tax fund. from which it was exempt as a result of the deduc• tion under section 53J (a), together with interest on arrears for the period from the end of the year in which the allocation from which the profits were distributed was made until the date of payment.

Depreciation 53M. Half of the depreciation adjustment shall be adjustment in relation to treated as an additional deduction for the purposes asset ' of section 12 of the Encouragement of Industry replacement and capital Law and for the purposes of the definition of profits. "adjusted depreciation" in section 88 of the Ordi• nance.

Tax exemption 53N. Where the shares of a non-resident in a of inflationary surplus on sale foreign-investment industrial company are sold to of shares. another non-resident, the inflationary surplus shall be exempt from tax if, in calculating the inflationary surplus, the rate of exchange of the currency with which the asset was acquired is regarded as the index; this provision shall not apply with respect to amounts regarded as inflationary surpluses under section 94B of the Ordinance.

Denial of right 530. (a) A company receiving benefits under this to depreciation under other chapter shall not be allowed additional depreciation laws; allocations under the Income Tax (Additional Depreciation before and after eligibility. Allowance on Business Property) Law, 5718 — 19581). or under the Income Tax (Additional Depreciation Allowance on Business Property) Law,

!) Sefer Ha-Chukkim of 5718, p. 168; LSI vol. XII, p. 186. 5724 —19641), nor any additional depreciation or deduction under the Encouragement of Industry Law. (b) (1) Where a company became an eligible company in a particular tax year, and in the preceding two tax years or in one of them claimed depreciation under the Encouragement of Industry Law, that de• preciation shall be cancelled and the com• pany shall be entitled to deduct for those years the depreciation adjustments for the equipment in respect of which the said depreciation was cancelled, less the long- term loan instalment adjustment in respect of instalments which matured in those years. (2) A company which ceased to be eligible in a particular tax year shall be entitled to deduct from its ,income in the ;two. tax years following that year the depreciation or amortisation adjustment allowed it in those years, less the long-term loan instal• ment adjustment in respect of instalments which matured in those years, and it shall only be entitled to depreciation under the Encouragement of Industry Law in respect of the remainder of the assets it has at the end of the said two years. (3) The amount of the loan instalment adjustment in excess of the depreciation or amortisation adjustment shall be treated as a negative allocation within the meaning of section 53J (b).

Renewal of 53P. Where after a company has ceased to be eligibility. eligible for a whole tax year the reason for the cessation lapses within the two tax years following that year, and notice of the lapse is given to the Assessing Officer upon filing the return for one of the said two years, the following provisions shall apply:

i) Sefer Ha-Chukkim of 5724, p. 84; LSI vol. XVIII, p. 74. (1) where the reason for the cessation of eligibility was the company's own request or its non-submission of the returns and confirma­ tions which it was required to submit under section 531 (b), it shall, within the period of benefits, again become an eligible company with effect from the date when its eligibility ceased, provided that the assessments under section 530 are amended accordingly; (2) where the reason for the cessation of eligibility was non-compliance with the con­ ditions set out in the definition of "foreign- investment company", the company shall again be an eligible company with effect from the date when the reason lapses.".

2. In section 74 (b) (1) of the principal Law, the following defi- Amendment of section 74 nitions shall be inserted after the definition of "accelerated de­ preciation": "chargeable income" means income before deduction of depre­ ciation and accelerated depreciation; "fixed assets" includes assets used by an enterprise even if they do not belong to the owner thereof.". 3. In section 39 of the Encouragement of Capital Investments Amendment of (Amendment No. 14) Law, 5736— 1976*) — ^taS^^ (1) the marginal note shall henceforth read "Commencement Investments Amendment) ״ .. ., , and application ; fco. 14) ^ (2) the words "and section 13 shall apply to anyone who has made application for approval of a project on or after the 1st Nisan, 5736 (1st April, 1976)" shall be added at the end.

4. In the Income Tax Ordinance — Amendment of (1) in section 17 (1), the closing passage, beginning with the o^flnance** words "except exchange-rate differentials", shall be replaced "~**" by the words "provided that exchange-rate differentials paid by a company to a non-resident who is a controlling member within the meaning of section 32 (9) in respect of a loan for which no approval was given by the Controller of Foreign Exchange shall not be deductible; deductible exchange-rate dif­ ferentials paid to a non-resident by a person whose income is not determined on a cash basis shall if accruing on the

!) Sefer Ha-Chukkim of 5736, p. 284; LSI vol. XXX, p. 277.

269 whole or part of the loan until maturity be deducted in the tax year in which the amount to which they relate matures and shall if so accruing after maturity be deducted as they accrue." (2) in section 28, subsection (i) shall be re-marked as sub• section "(j)" and the following subsection shall be inserted before it: "(i) (1) A person who incurs a loss in a tax year in which exchange-rate differentials accrued in previous years are deductible shall be allowed to deduct as an expense an amount of loss not exceeding the deducted exchange-rate differentials from his income in the preceding tax year; where the whole or part of the said amount cannot be deducted in the said year, it shall be deducted successively in the preceding years in which exchange-rate differentials accrued, provided that if it can be deducted in any one of those years it shall not be deducted in an earlier year; where it cannot be wholly deducted in the preceding years, the part not deducted shall be successively set off against the chargeable income in the following years. (2) The assessments for the years in respect of which a loss is deductible as aforesaid shall be deemed to have been amended accordingly.".

Application and 5. (a) Sections 1 and 4 shall apply from the tax year 1975, transitional provisions. provided that the differentials arising from such application shall be added to the income for the tax year 1976. (b) Notwithstanding the provisions of subsection (a), exchange- rate differentials which accrued in the tax year 1975 and are claimed as an expense but were not yet due for payment in that year shall be deductible in the tax year 1975 and not at the date of payment.

Commencement. 6. Sections 2 and 3 shall come into force on the 1st Nisan, 5736 (1st April, 1976).

Publication. 7. This Law shall be published in Reshumot within fifteen days from the date of its adoption by the Knesset.

YITZCHAK RABIN YEHOSHUA RABINOVITZ Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State

270 (No. 75)

EMERGENCY REGULATIONS (PROTECTION OF EDUCATIONAL INSTITUTIONS) (EXTENSION OF VALIDITY) LAW, 5737 — 1977 *

1. The validity of the Emergency Regulations (Protection of Extension of Educational Institutions), 5734 —19741). (hereinafter referred to as va 1 1 y' "the Regulations") is hereby extended until the 28th Av, 5738 (31st August, 1978).

2. The Minister may at any time, by order published in Reshumot, Power of early revoke the whole or part of the Regulations or restrict powers revocat,on• thereunder.

3. This Law shall come into force on the 17th Elul, 5737 Commencement. (31st August, 1977).

YITZCHAK RABIN AHARON YADLIN Prime Minister Minister of Education and Culture

EFRAYIM KATZIR President of the State

and (1977׳ ,Passed by the Knesset on the 10th Nisan, 5737 (29th March * published in Sefer Ha-Chukkim No. 861 of the 16th Nisan, 5737 (4th April, 1977), p. 210; the Bill and an Explanatory Note were published in Hatzdot Chok No. 1293 of 5737, p. 196. *) Sefer Ha-Chukkim of 5735, pp. 18 and 196 — LSI vol. XXIX, pp. 25 and 259; Sefer Ha-Chukkim of 5736, pp. 174 and 274 — LSI vol. XXX, pp. 175 and 268.

271 (No. 76)

NATIONAL INSURANCE (AMENDMENT No. 30) LAW, 5737 — 1977 *

Addition of 1. In the National Insurance Law (Consolidated Version), 5728 — section J 127ZZ2. 1968 ) (hereinafter referred to as "the principal Law), the following section shall be inserted after section 127 ZZ1:

"Medical 127ZZ2. Where an arrangement exists between the insurance. State and a sick-fund or other medical institution for the medical insurance of invalids, then, not• withstanding the provision of section 135, the In• stitute may, on the written application of an invalid and for such period as he may request, deduct from the invalidity pension medical insurance contributions at a rate from time to time agreed upon between the Institute and the State. The amount deducted as aforesaid shall be transferred to the Treasury.".

Amendment of 2. In section 127AAA of the principal Law, in the definition section 127AAA. of "wage", the words "compensation under the Reserve Service (Compensation) Law (Consolidated Version), 5719 —1959" shall be replaced by the words "compensation under Chapter Six "D" ".

Addition of 3. The following chapter shall be inserted after Chapter Six "C" Chapter Six "D". of the principal Law:

"Chapter Six "D": Reserve Service Insurance

"Definitions. 127000. In this chapter — "Reserves" means reserve service within the meaning of the Defence Service Law Consolidated Version), 5719 — 1959 2);

Passed by the Knesset on the 14th Iyar, 5737 (2nd May, 1977) and published in Sefer Ha-Chukkim No. 862 of the 24th Iyar, 5737 (12th May, 1977), p. 212; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1298 of 5737, p. 214. 1J Sefer Ha-Chukkim of 5728, p. 108; LSI vol. XXII, p. 114; Sefer Ha- Chukkim of 5737, p. 152 — supra, p. 188. 2) Sefer Ha-Chukkim of 5719, p. 286; LSI vol. XIII, p. 328.

272 "maximum compensation" means an amount equal to the maximum monthly income prescribed as the basis for con• tributions, divided by thirty; "minimum compensation" means an amount equal to 55 per cent of the aver• age wage, plus compensation within the meaning of section 1*, divided by thirty; "income" means the income from which contributions are due and includes any amount from which contributions would be due but for the maximum prescribed as the basis for contributions.

Payment out 127PPP. (a) A person who serves in the Reserves of Treasury. under Law shall be paid by the Treasury, through the Defence Army of Israel, ten pounds for each day of service. (b) Where a person serves not more than one day upon one reporting, he shall not be entitled to a payment under subsection (a) unless otherwise prescribed by order of the Minister of Defence, in consultation with the Minister, in respect of particular categories of reservists. (c) The Minister may, with the approval of the Labour Affairs Committee of the Knesset, vary the amount specified in subsection (a).

Right to 127QQQ. A person who serves in the Reserves compensation. under Law and is entitled to a payment by the Treasury under section 127PPP shall be paid com• pensation in respect of each day of service at the rate stated in section 127RRR.

Rate of 127RRR. (a) Where immediately before serving in compensation. ^ j^gg^gj a person was one 0f tne following, the daily rate of compensation shall be as stated hereunder:

"Compensation" here (in Hebrew: pitsuy) does not mean the reservists' compensation which is the subject of this chapter (tagmul) but compen• sation for an increase in the prices of commodities — Tr. (1) if he was an employee, an amount equal to the ordinary wage; (2) if he was self-employed, an amount equal to his average income; (3) if he was neither an employee nor self-employed, the minimum com­ pensation. (b) The daily rate of compensation shall be not less than the minimum compensation nor more than the maximum compensation. (c) Where immediately before serving in the Reserves a person was unemployed and entitled to unemployment allowance under Chapter Six "A", the rate of compensation shall not be less than the daily unemployment allowance to which he was entitled immediately before serving in the Reserves.

Ordinary wage 127SSS. (a) The ordinary wage of an employee and average income. for the purposes of section 127RRR is the amount of his income for the quarter preceding his service in the Reserves, plus the compensation within the meaning of section 1 to which he would be entitled were not serving in the Reserves and were ־ if he employed, divided by ninety; but where in the quarter preceding his reserve service a person was employed for less than sixty days, his ordinary wage shall be the amount resulting from the division by ninety of his income for any three months chosen by him out of the six months preceding his' service in the Reserves. (b) The average income of a self-employed person for the purposes of section 127RRR is the 360th part of his income. (c) The Minister may, ,with the approval of the Labour Affairs Committee of the Knesset, designate special circumstances in which the com­ pensation shall be calculated according to the income an employee would have in the month in which he serves in the. Reserves if he were not.serving and were employed, and the:modes of calculating the compensation -in such circumstances.

274 Calculation of 127TTT. (a) Where immediately before serving in compensation in special the Reserves a person was neither an employee circumstances. nor self-employed but the break in his occupation did not exceed a period prescribed by regulations, he shall, for the purposes of calculating the ordinary wage or average income, be deemed to have com• menced service in the Reserves on the day on which he ceased to be an employee or self-employed, as the case may be. (b) Where an employee is also entitled to compensation as a self-employed person, the amount of compensation paid to him for each day shall not exceed the maximum compensation.

Additional and 127UUU. The Minister may, by regulations, enact supplementary regulations. additional and supplementary regulations as to calculating the ordinary wage, the average income, the income of a person who was self-employed during part of the financial year, and the quarter- year for the purposes of section 127SSS.

Payment of 127VVV. (a) A person who immediately before compensation. serving in the Reserves was an employee and in the quarter preceding his service worked for not less than seventy-five days for the same employer or at the same place of employment, or a person whose wage is payable on the basis of a month or a longer period, shall be paid the compensation by his employer; the compensation shall be paid not later than the day on which the wage would be paid if the person were not serving in the Reserves and continued working. Compensation due to aa employee under this subsection shall be treated as wage. (b) A person who immediately before serving in the Reserves was not an employee as specified in subsection (a) shall be paid the com• pensation by the Institute. (c) The Minister may, by regulations, designate classes-of cases in which, notwithstanding the provisions of subsection (a), an employee shall be paid compensation direct by the Institute.

275 Conditions and 127WWW. (a) Notwithstanding anything provided in circumstances for increased this chapter, the Minister may, by regulations, in of Finance and ־ rate of consultation with the Minister compensation. with the approval of the Labour Affairs Committee of the Knesset, prescribe circumstances and con­ ditions under or on which compensation shall be paid at an increased rate to all or particular classes of reservists, without a time-limit or for a limited period, as well as the amount of the increase, the sources for financing it and the procedure for its payment. (b) Where the Minister of Defence directs under section 127XXX that service in the Reserves shall be emergency service, the power to make regulations for the purposes of subsection (a) shall vest in the Minister of Defence in consultation with the Minister and the Minister of Finance and with the approval of the Labour Affairs Committee of the Knesset.

Advance 127XXX. (a) Where the Minister of Defence directs payment by Defence Army that service in the Reserves shall, for the purposes of Israel. of this chapter, be emergency service — (1) the Treasury shall, through the Defence Army of Israel, make to every reservist or to whom he may direct an advance payment at the rate of the minimum compensation for each day of service on account of the compensation due to him under this chapter; the advance payment shall be made at such time as the Minister of Defence directs; (2) the Minister of Defence may, in consultation with the Minister and the Minister of Finance and with the approval of the Labour Affairs Com­ mittee of the Knesset, direct an in­ crease of the minimum compensa­ tion for all or particular classes of reservists.

276 (b) Directions under subsection (a) shall not require publication in Reshumot. (c) The employer or the Institute, as the case may be, shall deduct the amount of an advance payment made under subsection (a) from the amount of the compensation due to the re• servist under this chapter. (d) The Institute shall reimburse the De• fence Army of Israel for the amounts paid under subsection (a).

Compensation 127YYY. A person who begins to serve in the in respect of additional Reserves within the period prescribed by regulations reserve service. from the termination of earlier reserve service for which he has received compensation under this chapter shall, for the purpose of calculating the compensation for the period of the additional service, be deemed to continue his earlier service unless it is to his advantage to have the compensa• tion calculated without reference to the earlier service.

Payments to be 127ZZZ. The Institute shall reimburse an employer reimbursed by Institute. for compensation paid by him to his employee under section 127VVV (a).

Deduction 127AAAA. The Institute may deduct a contribution of debt. debt due to it from an employer from any amount it is required to reimburse to him under section 127ZZZ.

Gratuities. 127BBBB. (a) The Institute may, after consultation with the Reserve Service Insurance Committee re• ferred to in section 204B and with the approval of the Minister, pay gratuities — (1) in accordance with rules pre• scribed by regulations with the ap• proval of the Labour Affairs Com• mittee of the Knesset — to working adolescents up to the age of eighteen who have been absent from work owing to participation in pre-military education: (2) for the development of welfare services for reservists and members of their families, including the carry• ing out of research and experimental work in this connection, (b) The aggregate amount of gratuities under subsection (a) (2) shall not in respect of any one year exceed 0.25 per cent of the estimated amount of the collection of reserve service insurance contributions for that year; the Minister may, in consultation with the Minister of Finance and with the approval of the Labour Affairs Committee of the Knesset, increase the rate up to 0.5 per cent.

Continuation 127CCCC. Where the employer and his employees of payments to provident or the employer alone normally make payments and other to a provident, pension or other similar fund, the funds. employer and an employee entitled to compensation under this chapter or the employer alone, as the case may be, shall continue making payments to that fund in respect of the period when the employee serves in the Reserves, as if the employee were not serving in the Reserves and. continued working.

Police officer, 127DDDD. (a) This chapter, except the provisions prison officer and Knesset of section 127PPP, shall not apply to — guard. (1) a police officer within the mean• ing of the Police (Invalids and Fallen) Law, 5715 — 1955 1); (2) a prison officer, within the meaning of the Prison Service (In• valids and Fallen) Law, 5720 — 1960 2); (3) a Knesset guard, within the meaning of the Knesset Building and Precincts Law, 5728 — 1968 3). (b) A police officer, prison officer or

1) ' Sefer Ha-Chukkim of 5715, p. 74; LSI vol. IX, p. 80. 2) Sefer Ha-Chukkim of 5720, p. 37; LSI vol. XIV, p. 32. s) Sefer Ha-Chukkim of 5728, p. 197; LSI vol. XXII, p. 226. .-־ •'•־׳... Knesset guard serving in .the Reserves and entitled to a payment under section 127PPP shall be entitled to receive from the Treasury, in respect of every day of his service in the Reserves, a payment not less than the compensation which would be due to him but for the provision of subsection (a).".

4. In section 142 of the principal Law, paragraphs (1) and (2) Amendment of shall be replaced by the following paragraph: section "(1) the mode and times of payment of benefits;".

5. In section 143 (e) of the principal Law, paragraph (3) shall Amendment of be replaced by the following paragraph: "(3) compensation under Chapter Six "D"".

6. In section 145 (b) of. the principal Law, the words "or to Amendment of .section 145 • " ״ ״ ... , • . compensation for reserve service under the Reserve Service (Com­ pensation) Law (Consolidated Version), 5719— 1959" shall be re­ placed by the words "or to compensation under Chapter Six "D" ".

7. In section 157 (a) of the principal Law, the words "Old-age, Amendment of survivors' and maternity insurance contributions" shall be replaced sectlon by the words "Old age, survivors', reserve service and maternity insurance contributions".

8. In section 168 (a) of the principal Law — Amendment of (1) in paragraph (1), the words "or Chapter Six "D"" shall sectl0n be added at the end; (2) paragraph (4) shall be deleted.

9. In section 169 of the principal Law— Amendment of 169־ the words "Periods of" in the marginal note shall be deleted; section (1) (2) subsection (f) shall be deleted; (3) the following subsections shall be inserted after subsection (h): "(i) A person voluntarily insured under Chapter Two shall not pay reserve service insurance contributions. (j) Reserve service insurance contributions shall not be paid for a person to whom Chapter Six "D" is inapplicable ׳.־ .".by virtue of section 127DDDD

10. In section 181 of the principal Law, the words "or Chapter Amendment of section 181- . , ־ .Six "D"" at the ,end of •subsection- (b) shall be deleted

279 Amendment of 11. In section 186 (5) of the principal Law, in subparagraph (e), section 186. the words "and being neither an employee nor a self-employed person" shall be deleted and the following subparagraph shall be inserted after subparagraph (e): "(e 1) an insured person undergoing vocational training or vocational rehabilitation within the meaning of these terms in section 31 (a) (3);".

Addition of 12. The following section shall be inserted after section 191 of section 191 A. the principal Law:

"Special 191A. Where the Minister of Defence directs under provisions for a time of section 127XXX that reserve service shall be emer• emergency. gency service, the Minister and the Minister of Finance may under special circumstances, with the approval of the Labour Affairs Committee of the Knesset, enact in respect of the period of that service, by regulations, provisions as to full or partial indemnification of an employer for pay• ments under section 127CCCC and for the payment of contributions for his employees. Such regulations as aforesaid shall prescribe the sources from which the indemnification is to be financed and the rate thereof, and they may prescribe the application to part of the period, the classes of employees entitled to it and the conditions of its grant.".

Amendment of 13. In section 196A (b) of the principal Law, the words "as well section 196 A. as a benefit fund within the meaning of section 127AAA and a leave fund under the Annual Leave Law, 5711 — 1951 shall be added at the end.

Amendment of 14. The heading of Article Two of Chapter Ten of the principal article heading. Law shall be replaced by the following heading: "Article Two: The Council, the Board, the Unemployment Insurance Committee and the Reserve Service Insurance Com• mittee".

Addition of 15. The following section shall be inserted after section 204A section 204B. of the principal Law:

1I Sejer Ha-Chukkim of 5711, p. 234; LSI vol. V, p. 155.

280 204B. (a) (1) The Minister shall appoint a special public committee for reserve service in• surance (hereinafter referred to as "the Reserve Service Insurance Committee"), and he or a person appointed by him in that behalf shall be the chairman of the Com• mittee. (2) The members of the committee shall be one representative each of the Minister of Labour, the Minister of Finance and the Minister of Defence, representatives of employees, representatives of employers and representatives of self-employed persons. (3) The employees' representatives on the Committee shall be appointed after con• sultation with the national employees' or• ganisation representing the greatest number of employees. The employers' representa• tives shall be appointed after consultation with national employers' organisations which in the opinion of the Minister are represen• tative and concerned. The self-employed persons' representatives shall be appointed after consultation with organisations. which in the opinion of the Minister represent self-employed persons. (4) The Minister shall, by notice in Reshu- mot, prescribe the number of employees' representatives, employers' representatives and self-employed persons' representatives on the committee: Provided that the number of employees' representatives shall be the same as that of employers' representatives. (5) The period of tenure of the Reserve Service Insurance Committee shall be four years. (b) The Reserve Service Insurance Committee shall be competent — (1) to advise the Minister in framing policy for reserve service insurance; ־-to advise the Minister in making regu (2) lations relating to, reserve service insurance; (3) to consider the draft budget of the Reserve Service Insurance Branch and to transmit, it for the Minister's approval with its comments and recommendations; (4) to supervise the activities of the Re­ serve Service Insurance Branch; (5) to carry out any other function under Chapter Six "D" assigned to it by the Minister. (c) The Council shall not have the powers of the Reserve Service Insurance Committee as to any of the matters referred to in subsection (b), but as to matters relating also to other branches of insurance the Reserve Service Insurance Com­ mittee shall be treated as a committee appointed under section 203. (d) The Reserve Service Insurance Committee may appoint subcommittees, from among its mem­ bers or otherwise, and delegate powers to them.".

Amendment of 16. In section 205 of the principal Law, the words "its committees section 205. and the Unemployment Insurance Committee" shall be replaced by the words "its committees, the Unemployment Insurance Com­ mittee and the Reserve Service Insurance Committee".

Amendment of 17. In section 207 of the principal Law, the words "or of the section 207. Reserve Service Insurance Committee" shall be inserted after the words "or of the' Unemployment Insurance Committee".

Amendment of 18. In section 215 of the principal Law, the following subsection section 215. shall be inserted after subsection (cl): "(c2) Notwithstanding the provisions of subsection (c), no credit or debit item shall be transferred from the account of the Reserve Service Insurance Branch to the account of any other branch of insurance.".

Amendment of 19. In section 217A of the principal Law, the words "or in the section 217A. Reserve Service Insurance Branch" shall be inserted after the words "in the Unemployment Insurance Branch".

282 20. The following section shall be inserted after section 233 of Addition of ..'••IT section 234. the principal Law:

"Legal aid. 234. (a) The Minister may, with the consent of the Minister of Justice, in consultation with the Minister of Finance and with the approval of the Labour Affairs Committee of the Knesset, make regula• tions for the provision of legal aid to everyone applying therefor, other than a body of persons; in proceedings before the Labour Court to which the Institute is a party in matters arising out of this Law or out of any other enactment under which the Institute makes payments, other than proceedings concerning a claim for the payment of contributions or a claim against an employer under section 185. (b) Legal aid shall be provided through the Legal Aid Bureaux operating under the Legal Aid Law, 5732— 19721J, and in accordance with the provisions thereof and the regulations made there• under, all with such modifications as may be prescribed by regulations under subsection (a): Provided that the restrictions imposed by sec• tions 2 and 3 of the said Law concerning the ability of the applicant to bear the expenses of the legal service shall not apply. (c) The Institute shall bear the expenses of legal aid under this section under an arrangement between it and the State.".

21. In Table X of the principal Law, the following item shall Amendment of be added after Item 10: Table X

Item Branch of Insurance Per Cent Deduction from Wage of Income of Employee for the or Wage Purposes of Section 162(c) (in Per Cent)

"11 Reserve Service 3.2 0.6" T; i) Sefer Ha-Chukkim of 5732, p. 95; LSI vol. XXVI, p. 115.

283 Repeal; 22. (a) The Reserve Service (Compensation) Law (Consolidated transfer of 1 rights and Version), 5719 — 1959 X is hereby repealed. obligations. (b) All the rights and obligations of the Equalisation Fund are hereby transferred to the Institute, to the account of the Reserve Service Insurance Branch, and the Institute shall take the place of the Equalisation Fund to all intents and purposes.

Amendment of 23. In section 47A of the Income Tax Ordinance2), the words Ordinance31 "or to tne Equalisation Fund under jthe Reserve Service (Compen• sation) Law (Consolidated Version) ¡5719 — 1959" shall be deleted.

Amendment of 24. In section 7E (a) of the Civil Defence Law, 5711 — 1951 8), Civil Defence Law. the words "as prescribed at the time by order under section 3 (b) of the Reserve Service (Compensation) Law (Consolidated Version), 5719 —1959, for a person on emergency service" shall be replaced by the words "at the rate of the advance payment made to a reservist under section 127XXX (a) of the National Insurance Law (Consolidated Version), 5728— 1968".

Amendment of 25. In the Wage Protection Law, 5718 — 1958 4)—

Wage rotection ^ •m sectjon g ^ wor(js «an(j a deduction under section 19 (d) of the Reserve Service (Compensation) Law (Consolidated Version), 5719 — 1959" shall be deleted; (2) (A correction not affecting the English version).

Amendment of 26. In the Emergency Labour Service Law, 5727 — 1967 5), sec• Emergency Labour Service tion 14A shall be replaced by the following section: Law. "Compensation. 14A. Where a person is called up for training under section 9 for a consecutive period exceeding one day, the provisions of Chapter Six "D" of the National Insurance Law (Consolidated Ver• sion) 5728 — 1968, except section 127PPP, shall

1) Sefer Ha-Chukkim of 5719, p. 306; LSI vol. XIII, p. 350. 2) Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120 — NV vol. I, •p. 145; Sefer Ha-Chukkim of 5735, p. 42 — LSI vol. XXIX, p. 49. a) Sefer Ha-Chukkim of 5711, p. 78 — LSI vol. V, p. 72; Sefer Ha- Chukkim of 5729, p. 158 — LSI vol. XXIII, p. 167. 4) Sefer Ha-Chukkim of 5718, p. 86 — LSI vol. XII, p. 100; Sefer Ha- Chukkim of 5737, p. 102 — supra, p. 105. s) Sefer Ha-Chukkim of 5727, p. 86 — LSI vol. XXI, p. 82; Sefer Ha- Chukkim of 5736, p. 96 — LSI vol. XXX, p. 100.

284 apply as if he served in the Reserves for that period, and he shall be entitled to compensation for the whole of the ,period of training...as. .if he were entitled to a payment under the said sec• tion 127PPP.".

27. (a) Section 20 shall come into force on the 29th Elul, 5738 Commencement. (1st October, 1978). Regulations under section 234 of the principal Law may prescribe that aid shall be introduced progressively according to categories of proceedings, but so that upon the expiration of one year from the date of the coming into force of section 20 aid is provided in respect of all categories of proceedings. (b) The other provisions of this Law shall come into force on the 19th Tishri, 5737 (1st October, 1977).

YITZCHAK RABIN MOSHE BARAM Prime Minister Minister of Labour

EFRAYIM KATZIR President of the Stale

285 (No. 77)

TRADE IN USED VEHICLES LAW, 5737 — 1977*

Definitions. In this Law — "used vehicle" means a motor vehicle to which one of the following applies: (1) it is offered for sale to a consumer after being previously sold to a consumer at least once; (2) it has been used for at least three months after being registered under the Traffic Ordinance1); (3) it has been driven at least 2,000 kilometres;

"dealer" means a person whose business is the sale of used vehicles either as his only business or as one of his businesses, and includes a person carrying on business as aforesaid as a hired employee, a commission agent or a broker or in ׳'•'•' ;any other similar capacity

"false description" means a description given in contravention of section 2 (e); every other term shall have the same meaning as it has in the Traffic Ordinance unless the context otherwise requires.

Delivery of 2. (a) A dealer shall prominently display, on a used vehicle particulars of used offered for sale by or through him or kept by him at the place vehicles. where he usually sells used vehicles, a written notice indicating, inter alia — (1) the make and country of manufacture of the vehicle; (2) the model and the year of manufacture; (3) the previous owners; (4) any restrictions on the use of the vehicle or on the transfer of the ownership thereof by reason of non-payment of customs duty, taxes, imposts or fees due thereon or by reason of any pledge, charge or attachment; (5) the principal uses to which the vehicle has been put;

* Passed by the Knesset on the 28th Iyar, 5737 (16th May, 1977) and published in Sefer Ha-Chukkim No. 863 of the 9th Sivan, 5737 (26th May, 1977), p. 220; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1292 of 5737, p. 192. J) Dinei Medina( Yisrael (Nusach Chadash) No. 7, p. 173; LSI vol. I, p. 222.

286 (6) any repairs carried out on the engine and on safety mechanisms defined by regulations; (7) the number of kilometres driven; (8) the extent to which the dealer assumes responsibility for the satisfactory condition of the vehicle. (b) The particulars required under paragraphs (1) to (4) of subsection (a) shall be indicated in accordance with entries in the vehicle licence and in the records of the Licensing Authority. (c) Where any of the particulars referred to in subsection (a) (1) to (7) is not known to the seller, he shall expressly state such fact in the notice. (d) Where the purchaser informs the dealer that the vehicle is intended for some special use, the dealer shall give him information as. to the properties of the vehicle relevant to such use. (e) All the information given under subsection (a) or (d) shall be complete, correct and not likely to mislead.

3. (a) A dealer who, as a purchaser, broker, commission agent Written' or the' like, takes possession of a used vehicle for the purpose agreeme: of sale shall make a written agreement with the person who gives him possession thereof setting out the particulars referred to in sections (a) and (d). (b) A dealer who sells a used vehicle shall make with the purchaser a written agreement indicating, inter alia, the particulars referred to in section 2 (a) and (d); a signed copy of the agreement shall be delivered to the purchaser. (c) Forms for agreements under this section may be prescribed by regulations.

4. (a) A, dealer who contravenes any of the provisions of sec- Penalties tions 2 and 3 shall be liable to imprisonment for a term of one years or a fine of 250,000 pounds. (b) A person who, on giving a dealer possession of a vehicle , , for the purpose of sale, delivers to him any of the particulars referred to in section 2 (a) or (d) which is false or misleading shall be liable to imprisonment for a term of six months or a fine of 100,000 pounds. (c) It shall be a good defence if the accused proves that he did not know ,and. was npt required to know any of the particulars referred to in section 2 or whether it was correct. Further 5. The court which convicts a dealer of an offence under this measures. Law may, in addition to any other penalty, cancel or suspend his licence under any other Law•• and . order % the closure , of his place of business for such period as it may prescribe.

Cancellation 6. (a) Where a used vehicle is sold on the basis of a false of transaction. description as to a matter referred to in paragraphs (2) to (7) of section 2 (a) and the falsehood is material in the circumstances of the case, the purchaser may, within fourteen days from the date of the sale, cancel the sale by written notice to the seller. The court may, for special reasons, cancel the sale even after the said period. (b) Where a sale is cancelled under subsection (a), the seller shall, within seven days from receipt of notice of the cancellation, return the whole of the consideration to the purchaser and the purchaser shall return the vehicle to the seller. If the purchaser has meanwhile made such use of the vehicle as has considerably reduced its value or caused damage to it, the seller may deduct from the consideration to be returned the amount by which the value of the vehicle is less than it was at the time of the sale.

Onus of 7. Where a notice referred to in subsection (a) contains a false proof. description or where the publication of a false description can be attributed to the dealer, the dealer shall have to prove that he did not give the description.

Compensation. 8. A person adversely affected by an offence under this Law may claim compensation for the damage caused to him; the act or omission shall be treated as a civil wrong within the meaning of the Civil Wrongs Ordinance (New Version) 1).

Saving of 9. This Law shall not derogate from any right vested in the remedies. purchaser by any law.

Applicability 10. This Law shall apply to the State. to the State.

Implementation 11. The Minister of Transport is charged with the implementation

and regulations. qJ tfljs j^aw an^ ma^ ^e approval of the Economic Committee

i) Dinei Medinat Yisrael (Nusach Chadash) No. 10, p. 266 — NV vol. II, p. 5.

288 of the Knesset, make regulations as to any matter relating to its implementation.

12. This Law shall come into force on the 20th Cheshvan, 5738 Commencement. (1st November, 1977).

13. The provisions of this Law shall not apply to a used vehicle Transitional of which the dealer took possession before the coming into force pr0VIS10n• of this Law.

YITZCHAK RABIN GAD YAACOBI Prime Minister Minister of Transport

EFRAYIM KATZIR President of the State

289 (No. 78)

PENAL LAW, 5737 — 1977 (Published in Special Volume)

(No. 79)

PARTNERSHIP ORDINANCE (AMENDMENT) LAW, 5737 — 1977 *

Amendment of 1. In section 70 of the Partnership Ordinance (New Version),

section 70. 5735_ 1973 1)_ (1) in subsection (b), the words "not exceeding one pound for each inspection" shall be deleted; (2) in subsection (c), the words "not exceeding' two pounds for the certificate of registration and not exceeding forty agorot for each hundred words of a certified copy or extract" shall be deleted.

MENAHEM BEGIN MENAHEM BEGIN Prime Minister Minister of Justice

EFRAYIM KATZIR President of the State

Passed by the Knesset on the 11th Av, 5737 (26th July, 1977) and published in Sefer Ha-Chukkim No. 865 of the 21st Av, 5737 (5th August, 1977), p. 308; the Bill and an Explanatory Note were published in Hatzdot Chok No. 1257 of 5736, p. 363. Dinei Medinat Yisrael (Nusach Chadash) No. 28, p. 549.

2S0 (No. 80)

STANDARD CONTRACTS (AMENDMENT No. 2) LAW, 5737— 1977*

1. In the Standard Contracts Law, 5724— 19641). the following Amendment of paragraph shall be added at the end of section 21: 1 "(7) a supplier's duty to furnish the Attorney-General with a copy of a standard contract into which such supplier enters or proposes to enter with customers.".

MENAHEM BEGIN MENAHEM BEGIN Prime Minister Minister of Justice

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 11th Av, 5737 (26th July, 1977) and published in Sefer Ha-Chukkim No. 865 of the 21st Av, 5735 (5th published ׳ August, 1977), p. 308; the Bill and an Explanatory Note were in Hatzdot Chok No. 1185 of 5735, p. 299. i) Sefer, Ha-Chukkim of 5724, p. 58 — LSI vol. XVIII, p. 51; Sefer Ha- Chukkim of 5729, p. 140 — LSI vol. XXIJJ, p. 151.

291 (No. 81)

KNESSET COMMITTEES (LABOUR AND SOCIAL AFFAIRS COMMITTEE) LAW, 5737 — 1977 *

Labour and 1. Every power and function vested by any enactment in the Social Affairs Committee. Labour Affairs Committee of the Knesset or the Public Services Committee of the Knesset shall vest in the Labour and Social Affairs Committee of the Knesset: Provided that the Knesset may, by resolution upon the proposal of the House Committee, prescribe that any such power or function shall vest in some other committee of the Knesset.

Commencement. 2. This Law shall have effect from the 13th Tammuz, 5737 (28th June, 1977).

MENAHEM BEGIN Prime Minister

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 19th Av, 5737 (3rd August, 1977) and published in Sefer Ha-Chukkim No. 866 of the 28th Av, 5737 (12th August, 1977), p. 310; the Bill and an Explanatory Note were published in Hatzctot Chok No. 1307 of 5737, p. 262.

292 (No. 82)

EMERGENCY REGULATIONS (COMMODITIES AND SERVICES (CONTROL) — FURTHER PROVISIONS) (EXTENSION OF VALIDITY) (No. 2) LAW, 5737 — 1977 *

1. The validity of the Emergency Regulations (Commodities and Extension of Services (Control) — Further Provisions), 5736 —1976x) (hereinafter valldltv• referred to as "the Regulations") is hereby extended until the 27th Adar Alef, 5738 (6th March, 1978).

2. The Minister of Industry, Commerce and Tourism may at any Power of time, by order published in Reshumot, revoke all or any of the evocation. Regulations or restrict any powers thereunder.

3. This Law shall have effect from the 24th Elu], 5737 (7th Commencement. September, 1977).

MENAHEM BEGIN Prime Minister

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 19th Av, 5737 (3rd August, 1977) and published in Sefer Ha-Chukkim No. 866 of the 28th Av, 5737 (12th August, 1977), p. 310; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1304 of 5737, p. 252. J) Kovetz Ha-Takkanot of 5736, p. 226; Sefer Ha-Chukkim of 5736, pp. 84 and 236 — LSI vol. XXX, pp. 90 and 232; Sefer Ha-Chukkim of 5737, p. 50 — supra, p. 62.

293 (No. 83)

LAND (AMENDMENT No. 5) LAW, .5737 — 1977 *

Addition of 1. In section 77 of the Land Law, 5729 —1969l) (hereinafter Six "A". referred to as "the principal Law"), the following shall be inserted after section 77:

"Chapter Six "A": Houses Not Registered as Cooperative Houses

"Definitions. 77A. In this Chapter —

"house" means a permanent structure in which there are at least two dwellings and which is not registered as a cooperative house, and includes the land on which it stands;

"dwelling" means a room or compartment, or a set of rooms or compartments, intended to be used as a complete and separate unit for residence, business or any other purpose;

"owner of dwelling" means a person who under a written agreement is entitled to be registered as the owner, long-term tenant or long-term subtenant of a dwelling in a house; every occupier of a dwelling in a house shall so long as the contrary has not been proved be regarded as the owner of the dwelling for the purposes of this chapter;

"common property" means all the parts of the house except the dwellings and includes

* Passed by the Knesset on the 19th Av, 5737 (3rd August, 1977) and published in Sefer Ha-Chukkim No. 867 of the 28th Av, 5737 (12th August, 1977), p. 312; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1243 of 5736,.p. 256. 1J Sefer Ha-Chukkim of 5729, p. 259 — LSI vol. XXIII, p. 283; Sefer Ha-Chukkim of 5731, p. 164 — LSI vol. XXV, p. 157; Sefer Ha-Chukkim of 5733, p. 18 — LSI vol. XXVII, p. 18; Sefer Ha-Chukkim of 5734, p. 135 — LSI vol. XVIII, p. 144; Sefer Ha-Chukkim of 5735, p. 210 — LSI vol. XXIX, p. 277.

294 the land, roofs, outer walls, foundations, stair• cases, lifts and shelters, as well as heating and water installations and the like intended to serve all or most of the owners of the dwellings even if they are inside a particular dwelling.

Application of 77B. Sections 56, 57, 58, 62 (a), 65 and 68 to 77 provisions of Chapter Six. shall apply mutatis mutandis to a house within the meaning of this chapter.

Rules. 77C. A house shall be managed in accordance with the model rules set out in the Schedule.

First 77D. (a) The Inspector may appoint for the house representation. a provisional representation pending the establish• ment of the first representation under the Rules. The composition of the provisional representation shall be as recommended by the owners of half of the dwellings. In the absence of such a recom• mendation, the Inspector shall at this discretion appoint a ,provisional representation from among the owners of the dwellings or — if this is not prac• ticable — otherwise, and he may prescribe a remu• neration to be paid to it by the owners of the dwellings. (b) A representation appointed as provided in subsection (a) shall in all respects be treated like a representation established under the provisions of the Rules.

Procedure in 77E. Where no representation has been established the absence of a representation. or where the representation does not function, the Inspector may appoint a representation, and the provisions of section 77D shall apply mutatis mutandis to the appointment of the representation, the prescribing of its remuneration, and its status.

House which 77F. The following provisions shall apply to a has been registered. house which has been registered in the Register of Cooperative Houses after having been managed under this chapter: (1) every right or obligation which the repre• sentation of the house had immediately before the registration shall devolve on the representa• tion of the cooperative house established after the registration; (2) a legal proceeding in consequence of any such dispute as referred to in section 72 which was commenced immediately before the regis• tration shall continue and shall mutatis mutandis be deemed to have been instituted in accordance with Article Four of Chapter Six.".

Addition of 2. The following section shall be added after section 169 of the section 170. principal Law:

"Application of 170. The Minister of Justice shall, by order, apply

Chapter Six "A". the provisions of chapter Six "A" progressively to the regions of the State.".

Amendment of 3. Section 3 of the Schedule to the principal Law shall be re-marked Schedule. as section 3 (a) and the following subsection shall be added thereafter: "(b) The owner of a dwelling is entided to request the owner of another dwelling to carry out a repair in the other dwelling if its not being carried out is likely to result in damage to the dwelling of the first-mentioned owner.".

MENAHEM BEGIN MENAHEM BEGIN Prime Minister Minister of Justice

EFRAYIM KATZIR President of the State

296 (No. 84)

CRIMINAL PROCEDURE (AMENDMENT No. 9) LAW, 5737 —1977 *

1. In the Criminal Procedure Law, 5725 — 1965 *) (hereinafter Amendment of .• _ _ » section 31 A. referred to as the principal, TLaw') ,.s, in section 31A — (1) the words "in case of prostitution offence" in the marginal note shall be deleted; (2) the words "or under section 11 or 12 of the Penal Law Amendment (Deceit, Blackmail and Extortion) Law, 5723 — 1963 2), or under the Dangerous Drugs Ordinance (New Version), 5733 — 1973 3), except an offence relating only to the personal use of drugs" shall be inserted after the words "in connection with an act of prostitution by a woman"; (3) the words "the testimony of the woman has been taken, either at the trial or under section 111A" shall be replaced by the words "either at the trial or under section 111 A, the testimony has been taken of the woman and/or of any other witness whose testimony the court considers should be taken forthwith".

2. In section 111A of the principal Law — Amendment of (1) in the marginal note, the words "in case of prostitution sectl0n offence" shall be replaced by the words "in case of certain offences"; (2) the following shall be added at the end of subsection (a): "The Court may also take forthwith the testimony of any other witness to such an offence, to an offence under section 11 or 12 of the Penal Law Amendment (Deceit, Blackmail and Extortion) Law, 5723 —1963, to an offence under the

* Passed by the Knesset on the 19th Av, 5737 (3rd August, 1977) and published in Sefer Ha-Chukkim No. 867 of the 28th Av, 5737 (12th August, 1977), p. 313; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1291 of 5737, p. 188. i) Sefer Ha-Chukkim of 5725, p. 161 — LSI vol. XIX, p. 158; Sefer Ha- Chukkim of 5729, p. 194 — LSI vol. XXIII, p. 210; Sefer Ha-Chukkim of 5733, p. 224 — LSI vol. XXVII, p. 249; Sefer Ha-Chukkim of 5734, p. 86 — LSI vol. XXVIH, p. 85; Sefer Ha-Chukkim of 5735, pp. 6, 76, 130 and 218 — LSI vol. XXIX, pp. 8, 95, 161 and 289; Sefer Ha- Chukkim of 5736, p. 244 — LSI vol. XXX, p. 236. .Sefer Ha-Chukkim of 5723, p. 130; LSI vol. XVII, p. 153 (־ 8) Dinei Medinat Yisrael (Nusach Chadash) No. 27, p. 256.

297 Dangerous Drugs Ordinance (New Version), 5733 — 1973, except if relating only to the personal use of drugs, or to an offence committed for the purpose or in the course of the commission of one of these offences"; (3) the following shall be added at the end of subsection (b): "Before taking the testimony, the Court shall explain to the accused or person likely to be accused his right to . appoint a defence counsel for himself and shall give him a reasonable opportunity to do so; section 13 shall apply to the taking of testimony under this section: Provided that if the accused or person likely to be accused is destitute and has no defence counsel, the Court shall on his application appoint a defence counsel for him"; (a further amendment does not affect the English version); (4) in subsection (c), the word "her" shall be replaced by the word "his" and the following paragraph shall be added after paragraph (1): "(la) the accused was not given a reasonable opportunity to appoint a defence counsel for himself in order that the same might be present at the taking of the testimony and examine the witness;".

MENAHEM BEGIN MENAHEM BEGIN Prime Minister Minister of Justice

EFRAYIM KATZIR President of the State (No. 85)

DEFENCE ARMY OF ISRAEL (PERMANENT SERVICE) (BENEFITS) (AMENDMENT No. 10) LAW, 5737 — 1977 *

1. In the Defence Army of Israel (Benefits) Law, 5714 — 1954x) Amendment of section 5 (hereinafter referred to as "the principal Law"), the figure "18" shall, in the two places in which it occurs, be replaced by the figure "21". 2. Section 13 of the principal Law shall be replaced by the Replacement of , „ . section 13. following section:

"Provisions as to 13. (a) Notwithstanding anything provided in this

tne servk:e1SOry ^aw, Peri°d of compulsory service shall, for the purposes of this Law, be included in computing the period of service of a soldier who has served in permanent service for at least ten years or has been retired on pension by virtue of section 16. (b) In this section, "compulsory service" means military service other than under an engagement for permanent service but does not include reserve service under Chapter Four of the Defence Service Law (Consolidated Version), 5719 — 1959 2).

3. In section 17 of the principal Law, the words "by virtue of Amendment of section 17 paragraph (2) of section 14" in the opening passage of subsection (d) shall be replaced by the words "owing to discharge by reason of invalidity, within the meaning of the Invalids Law, contracted in permanent service, whose degree of invalidity is 35 per cent or over".

• Passed by the Knesset on the 19th Av, 5737 (3rd August, 1977) and published in Sefer Ha-Chukkim No. 867 of the 28th Av, 5737 (12th August, 1977), p. 314; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1279 of 5737, p. 102. J) Sefer Ha-Chukkim of 5714, p. 179 — LSI vol. VIII, p. 149; Sefer Ha- Chukkim of 5717, p. 185 — LSI vol. XI, p. 206; Sefer Ha-Chukkim of 5718; p. 43 — LSI vol. XII, p. 52; Sefer Ha-Chukkim of 5720, p. 60 — LSI vol. XIV, p. 53; Sefer Ha-Chukkim of 5725, p. 102 — LSI vol. XIX, p. 101; Sefer Ha-Chukkim of 5728, p. 86 — LSI vol. XXII, p. 92; Sefer Ha-Chukkim of 5732, p. 50 — LSI vol. XXVI, p. 50; Sefer Ha-Chukkim of 5733, p. 80 — LSI vol. XXVII, p. 77; Sefer Ha-Chukkim of 5735, p. 238 — LSI vol. XXIX, p. 318; Sefer Ha-Chukkim of 5737, p. 113 — supra, p. 132. 2) Sefer Ha-Chukkim of 5719, p. 286; LSI vol. XIII, p. 328.

299 משיד המשפטים מםמך זה הינו העתק שנסרק בשלמותו ביום ובשעה המצוינים . בסריקה ממוחשבת מהימנה מהמסמך המצוי בתיק, בהתאם לנוהל הבדיקות במשרד המשפטים. על החתום « 9ן משרד המשפטים (התימה מוסדית). Amendment of 4. In section 23 of the principal Law, subsection (a) shall be section 23. replaced by the following subsection: "(a) Where a soldier dies during permanent service and his survivors are entitled by reason of his death to a pension under the Soldiers' Families Law (in this section referred to as a "family pension"), they shall be entitled to a pension as specified hereunder: (1) a spouse, so long as she or he has not remarried, and orphans, so long as they are not self-supporting, shall be entitled to a pension under section 22 even if the soldier 'served in permanent service for less than five years; (2) so long as the spouse or orphans is or are entitled to a family pension, there shall be deducted from her, his or their pension half the pension or half the family pension or, if her, his or their right to a family pension has ,been converted ,under;.:,section 30 of the Soldiers' Families Law, half the pension or half the family pension to which she, he or they would be entitled but for the conversion, whichever is the smaller amount; (3) where the aggregate amount of pension due to the spouse and orphans of a soldier, together with the family pension due to them, exceeds the determining salary of the soldier, the excess amount shall be deducted from the pension; (4) for the purposes of paragraph (3), the addition under section 14 (1) of the Soldiers' Families Law and, in the case of a person entitled to a family pension under section 9 (b) of that Law, the difference between that family pension and the family pension under section 9 (a) of that Law, shall not be included in computing the family pension; (5) dependants shall, so long as they are not self-supporting, be each entitled to a pension of 10 per cent of the deter• mining salary of the soldier.".

Amendment of 5. In section 25 of the principal Law, the figure "26" in section 25. subsection (b) shall be deleted.

Repeal of 6. Section 26 of the principal Law is hereby repealed, section 26.

300 7. In section 27 of the principal Law — Amendment of .section 27 , ... . ״. (1) in subsection (a) — (a) the figure "26 (b)" in the opening passage shall be deleted; (b) paragraph (2) shall be deleted; (2) subsection (b) shall be re-marked as subsection (c) and the following subsection shall be inserted before it: "(b) Where section 23 (a) (3) applies, the spouse and orphans of the deceased soldier shall, instead of pensions at the rates prescribed in section 23, be paid pensions at the rates prescribed by the officer-in-charge having regard to the situation of the spouse and orphans and to any agreement between them: Provided that the aggregate amount of pension paid to all the survivors shall not exceed the maximum amount or the aggregate amount of pension which would be due to the survivors but for the provisions of this section, whichever is the smaller amount."; (3) in subsection (c) — (1) the closing passage of paragraph (1), beginning with the words "or the difference referred to in section 26 (d)", shall be deleted; (2) paragraph (2) shall be replaced by the following para­ graph: "(2) in the case of the survivors of a person entitled to a retirement pension, 75 per cent of the pension of the person entitled or, in the case of a spouse of a person entitled who maintains more than one orphan and so long as at least two orphans are entitled to a pension, 90 per cent of the pension of the person entitled;".

8. In section 33 (b) of the principal Law, the words "there shall Amendment of 33־ not be deducted from the pension half the amount of the other sectl0n pension as provided in section 23 (a) (1)" shall be replaced by the words "no amount shall be deducted under section 23 (a) (2)".

9. In section 33B (c) of the principal •Law,- the figure "26 (e)" Amendment of ־shall be deleted. section 33B

10. In section 51 of the principal Law, the figure "26" shall Amendment of 51־ be deleted. section

301 Transitional 11. (a) Sections 1, 3 and 7 of this Law shall have effect from

provisions. ^ ^ 5735 (jst April, 1976) and shall apply even where the ground for the payment of the pension arose before that date. (b) Sections 5, 6, 9 and 10 of this Law shall have effect from the 5th Av, 5733 (3rd August, 1973). (c) Section 2 shall apply to a person who left the service on or after the 1st Nisan, 5736 (1st April, 1976). (d) The following provisions shall apply in regard to pensions payable under section 23 (a) of the principal Law as enacted by this Law: (1) section 23 (a) (2) shall have effect from the 9th Nisan, 5734 (1st April, 1974); (2) the maximum fixed in section 23 (a) for the aggregate amount of pension and family pension due to the survivors of a deceased person (hereinafter referred to as "the maximum") shall not apply to payments for the period between the 9th Nisan, 5734 (1st April, 1974) and the 29th Adar Bet, 5736 (31st March, 1976); (3) , where a widow and orphans of a. soldier were entitled to a pension and family pension of a specific amount (here• inafter referred to as "the determining amount") on the 29th Adar Bet, 5736 (31st March, 1976), the aggregate amount of pension and family pension to which they are entitled after that date shall not be less than the determining amount by reason only that a maximum has been fixed for such aggregate amount, but so long as such aggregate amount exceeds the maximum they shall not by virtue of the principal Law be paid any amount in excess of the determining amount; (4) the other provisions of the said subsection shall, save as otherwise expressly provided in this section, have effect from the 1st Nisan, 5736 (1st April, 1976); (5) this subsection shall apply even where the ground for the payment of the pension arose before the relevant date specified therein. (e) Section 8 shall have effect from the 21st Adar, 5737 (11th March, 1977), and in respect of the period between the 9th Nisan, 5734 (1st April, 1974) and the 20th Adar, 5737 (10th March, 1977), section 33 (c) of the principal Law, as in force during that period, shall be deemed to read as follows:

302 "(c) For the purpose of determining the gratuity due under subsection (a) to a widow to whom section 23 applies, no amount shall be deducted under section 23 (a) (2).". (f) Every reference in this Law to a spouse shall, in respect of a pension payable for a period prior to the 21st Adar, 5737 (list March, 1977) be deemed to be a reference to a widow only.

MENAHEM BEGIN EZER WEIZMAN Prime Minister Minister of Defence

EFRAYIM KATZIR President of the State (No. 86)

LAND APPRECIATION TAX (TRANSITIONAL PROVISIONS) (AMENDMENT AND EXTENSION OF VALIDITY) LAW, 5737 — 1977 *

Amendment of 1. In the Land Appreciation Tax (Transitional Provisions) Law, section 1. 5736—19761) (hereinafter referred to as "the principal Law"), section 1 shall be replaced by the following section:

"Exemption 1. (a) Where within two years from the 10th from land appreciation Av, 5736 (6th August, 1976) a real estate association tax and files a declaration under section 73 of the Land additional tax. hereinafter) (־ Appreciation Tax Law, 5723 — 1963 referred to as "the Appreciation Tax Law"), attest­ ing to the transfer of all the rights of the association in land to all the holders of rights in the association in accordance with their rights on the date of the transfer, the association and the holders of rights therein shall be exempt from land appreciation tax and additional tax in respect of the transfer.

(b) The Director of Appreciation Tax or a person empowered by him may postpone the time for payment of the tax until the conditions set out in section 3 are fulfilled and may make the post­ ponement conditional upon receipt of a bank guaran­ tee, or some other guarantee prescribed by him, as security for payment of the tax in case the condi­ tions set out in section 3 are not fulfilled. He also may, notwithstanding the provision of sec­ tion 16 (a) (2) of the Appreciation Tax Law, approve the transfer of the rights in the Land Register and make the approval conditional upon the receipt of such guarantee as aforesaid.".

* Passed by the Knesset on the 19th Av, 5737 (3rd August, 1977) and published in Sefer Ha-Chukkim No. 867 of the 28th Av, 5737 (12th August, 1977), p. 317. 1) Sefer Ha-Chukkim of 5736, p. 272; LSI vol. XXX, p. 265. 2) Sefer Ha-Chukkim of 5723, p. 156; LSI vol. XVH, p. 193.

304 2. In section 3 of the principal Law, the words "the filing of Amendment of application for the transfer" shall be replaced by the words "the seotlon 3- transfer of the rights".

3. A real estate association which before the coming into force Transitional of this Law applied for its rights in land to be transferred to Provislon• the holders of rights in the association and on the date of publication of this Law has not yet transferred its rights in land to the holders of rights as aforesaid shall, as a condition of exemption as specified in sections 1 and 2 of the principal Law, file a declaration as provided in section 1 (a), as enacted by this Law, within ninety days from the date of publication of this Law and pass a resolution for the winding-up of the association or for its removal from the Register of Companies within six months from the date of transfer of the rights.

4. This Law shall come into force on the 22nd Av, 5737 (6th Commencement August, 1977).

MENAHEM BEGIN SIMCHA EHRLICH Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State

.305 (No. 87)

INCOME TAX ORDINANCE (AMENDMENT No. 28) LAW, 5737 _ !977 *

Addition of 1. In the Income Tax Ordinance1) (hereinafter referred to as section 36. Ordinance"), the following section shall be inserted after section 35:

"Credit in 36. In calculating the tax of an individual resident topeiace°oftraVel in Israel> one quarter of a credit point shall be gainful brought into account as a travel credit.", employment. Replacement of 2. Section 45A of the Ordinance shall be replaced by the ״ ״ .section 45A following section:

"Credit in 45A. (a) An individual shall be granted a tax respect of insurance credit of an amount equal to 25 per cent of premiums and the amounts paid by him in the tax year — payments to pension fund. (1) if he is resident in Israel, for insurance of his life or the life of his wife with an insurance company; (2) as a payment to a benefit fund within the meaning of section 47, approved by the Commissioner for the purposes of this paragraph, other than a payment to a benefit pension fund under a comprehensive pension scheme. (b) An individual shall be granted a tax credit of an amount equal to 35 per cent of the amounts paid by him in the tax year to a benefit pension fund under a comprehensive pension scheme. (c) In this section, "comprehensive pension scheme" means a pension scheme including also pension payments in respect of invalidity and pen­ sion payments to survivors.

• Passed by the Knesset on the 19th Av, 5737 (3rd August, 1977) and published in Sefer Ha-Chukkim No. 867 of the 28th Av, 5737 (12th August, 1977), p. 318; the Bill and an Explanatory Note were published in Hatzdot Chok No. 1305 of 5737, p. 254. 0 Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120 — NV vol. I, p. 145; Sefer Ha-Chukkim of 5737, pp. 194, 207 and 218 — supra, pp. 246, 269 and 284.

306 (d) Notwithstanding the provisions of subsec• tions (a) and (b), a credit shall not be granted in respect of such part of the amounts as is in excess of 900 pounds or in excess of 5 per cent of the entitling income, within the meaning of section 47, whichever is more.".

3. (a) Section 1 shall come into force on the 19th Tishri, Commencement and transitional 5738 (1st October, 1977): provision. Provided that in calculating the tax for the year 1977 only half the year's amount of credit shall be brought into account. (b) Section 2 shall come into force on the 23rd Adar Bet, 5737 (1st April, 1978).

MENAHEM BEGIN SIMCHA EHRLICH Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State

307 (No. 88)

COURTS (AMENDMENT No. 7) LAW, 5737 — 1977*

Amendment of 1. In the Courts Law, 5717 —1957 a), the words "fifty thousand section 28. pounds" in section 28 (2) shall be replaced by the words "one hundred and fifty thousand pounds".

Transitional 2. Where a matter which this Law includes in the jurisdiction of provision. the Magistrates' Court was filed in the District Court before the coming into force of this Law, the District Court shall continue to deal with it notwithstanding the provision of section 1.

MENAHEM BEGIN MENAHEM BEGIN Prime Minister Minister of Justice

EFRAYIM KATZIR President of the State

* Passed by the Knesset on the 10th Elul, 5737 (24th August, 1977) and published in Sefer Ha-Chukkim No. 868 of the 19th Elul, 5737 (2nd September, 1977), p. 320; the Bill and an Explanatory Note were pub• lished in Hatza'ot Chok No. 1293 of 5737, p. 198. 1J Sefer Ha-Chukkim of 5717, p. 148 — LSI vol. XI, p. 157; Sefer Ha- Chukkim of 5722, p. 24 — LSI vol. XVI, p. 17; Sefer Ha-Chukkim of 5724, p. 66 — LSI vol. XVIII, p. 56; Sefer Ha-Chukkim of 5727, p. 132 — LSI vol. XXI, p. 131; Sefer Ha-Chukkim of 5731, p. 120 — LSI vol. XXV, p. 118; Sefer Ha-Chukkim of 5733, p. 237 — LSI vol. XXVII, p. 267; Sefer Ha-Chukkim of 5735, p. 106 — LSI vol. XXIX, p. 137.

308 BUDGET (TRANSITION PERIOD APRIL-JULY 1977) LAW, 5737 —1977 *

1. In this Law— Definitions.

"the transition period" means the period from the 13th Nisan, 5737 (1st April, 1977) to the 16th Av, 5737 (31st July, 1977);

"Bill" means the Budget (Financial Year 1977) Bill, 5737 — 1977 1)j

"budget head" means an amount, or a number of posts, specified in the Bill in a heading marked with a double broken line;

"field of operation" means an amount, or a number of posts, specified in the Bill in a heading marked with a dash and two dots;

"scheme" means an amount, or a number of posts, specified in the Bill in a heading marked with a double dash and a dot;

"subscheme" means an amount, or a number of posts, specified in the Bill in an unmarked heading;

"the Committee" means the Finance Committee of the Knesset;

"person in charge of a budget head" — (1) in respect of budget head 01, "President of the State", means the person appointed in that behalf by the President; (2) in respect of every other budget head, means the Minister designated by the Government, or the person appointed by that Minister, in that behalf.

2. (a) The Government may expend in the transition period Expenditure an amount of 31,800,000,000 pounds (hereinafter referred to as breakdown "the Expenditure Budget"), being 26.7 per cent of the amount thereof, specified in section 2 of the Bill with the deduction of an amount of 907,500,000 pounds.

* Passed by the Knesset on the 26th Adar, 5737 (16th March, 1977) and published in Chukkei Taktziv No. 70 of the 12th Nisan, 5737 (31st March, 1977), p. 2. J) Chukkei Taktziv (Hatza'ot) No. 65, p. 34. (b) The Expenditure Budget consists of the following amounts: (1) 26.7 per cent of the amount specified in section 2 of the Bill minus the amounts specified in budget heads 47, 48, 87 and 88, "Reserves", and 84, "Payment of Debts", in the first column of the First Schedule to the Bill; (2) 667,803,000 pounds under budget head 47, "General Reserve"; (3) 24,380,000 pounds under budget head 48, "Reserve for Price Increases"; (4) 47,747,000 pounds under budget head 87, ",Reserve for Development"; (5) 12,770,000 pounds under budget head 88, "Reserve for Price Increases"; (6) 3,938,500,000 pounds under budget head 84, "Payment of Debts". (c) The amount mentioned in subsection (b) (1) is divided into parts, and each part thereof into budget heads, fields of operation, schemes and subschemes equal to 26.7 per cent of the parts, budget heads, fields of operation, schemes and subschemes set out in the first colum of the First Schedule to the Bill, except budget heads 47, 48, 87 and 88, "Reserves", and 84, "Payment of Debts". (d) The Minister of Finance may, with the approval of the Committee, transfer an amount of up to 707,500,000 pounds from the parts, budget heads, fields of operation, schemes and subschemes prescribed by him to budget heads 47, 48, 87 and 88, "Reserves", in the first part of the First Schedule to the Bill, as he may prescribe with approval as aforesaid.

Additional 3. Notwithstanding the provisions of section 2, the Government expenditure. is authorised to expend in the transition period, with the prior approval of the Committee, additional amounts for purposes which :shall be prescribed by the Committee when it appears to it that the revenue necessary to cover the additional expenditure will be received.

Revenue- 4. (a) In addition to the amounts which it is authorised to Conditioned Expenditure expend under sections 2 and 3, the Government is authorised to Budget. expend in the transition period, as "revenue-conditioned expenditure", an amount of 1,968,081,000 pounds, being 26.7 per cent of the amount specified in section 4 of the Bill, together with the amounts which will be added under section 9 (a) (2), provided

310 that the receipts to finance the expenditure will be received; this amount shall be divided into parts, budget heads, fields of operation, schemes and subschemes equal to 26.7 per cent of the parts, budget heads, fields of operation, schemes and subschemes set out in the second column of the First Schedule to the Bill, headlined "Revenue-Conditioned Expenditure". (b) The Government is authorised to expend the amounts referred to in this section on condition that the amount expended under a particular subscheme does not exceed the amount of receipts which will actually have been collected for that subscheme by the expiration of six months from the expiration of the transition period. (c) Receipts originating in a loan shall only be used to finance expenditure under budget heads appearing in Part B of the First Schedule to the Bill.

5. In respect of a subscheme in the First Schedule to the Authorisation Bill in which any amount appears in the third column, headlined liabtiiti^0* "Authorisation to Contract Liabilities", it shall not be permissible to contract a liability in the transition period save within the limits of two thirds of that amount.

6. The Government may in the transition period fill 66,956 Manpower posts, being the number of posts for the 12th Nisan, 5737 (31st ceiling• March, 1977), specified in section 6 of the Bill, with the deduction of the number of posts specified in budget head 47, "General Reserve", in the fourth column of the First Schedule to the Bill; the division of this number of posts into parts, budget heads, fields of operation, schemes and subschemes shall be as set out in the fourth column of the First Schedule to the Bill, head• lined "Manpower Ceiling", excluding budget head 47 of the Bill, "General Reserve".

7. (a) 26.7 per cent of the amount specified in budget head 15 Security of the Bill, "Ministry of Defence", is hereinafter referred to as Budget!°n "the Security Transition Budget"; the division of the Security Transition Budget into fields of operation, schemes and subschemes shall, upon the proposal of the Government, be prescribed by a joint committee of the Finance Committee and the Foreign Affairs and Security Committee of the Knesset. (b) A "Security (Revenue-Conditioned Expenditure) Transition Budget" and a "Security (Business Enterprises) Transition Budget" shall be added to the Security Transition Budget, and authorisation to contract liabilities, as well as manpower ceilings, shall be indicated in the Security Transition Budget; for these purposes, sections 4, 5, 6 and 8 shall apply mutatis mutandis to the Security Transition Budget. (c) For the purposes of the Security Transition Budget, every reference in this Law to the Committee shall be deemed to be a reference to the joint committee mentioned in subsection (a).

Business 8. (a) In addition to the amounts which it is authorised to nses g~j^Pt expend under sections 2, 3, 4 and 7, the Government is authorised to expend in the transition period 26.7 per cent of the amounts specified in the first column of the second part of the Second Schedule to the Bill; the said amounts shall be divided into budget heads, fields of operation, schemes and subschemes equal to 26.7 per cent of the budget heads, fields of operation, schemes and subschemes set out in the first column of the second part of the Second Schedule to the Bill. (b) The provisions of section 5 shall apply to a subscheme in the second part of the Second Schedule to the Bill in which any amount appears in the third column. (c) In addition to the number of posts which it is authorised to fill under section 6, the Government is authorised to fill in the transition period the number of posts specified in the fourth column of the second part of the Second Schedule to the Bill; the division of the said posts into budget heads, fields of operation, schemes and subschemes shall be as set out in that part. (d) The estimated receipts to cover the Business Enterprises Budget in the transition period are 26.7 per cent of what is set out in the first part of the Second Schedule to the Bill. (e) If the Minister of Finance considers that any of the amounts of receipts referred to in subsection (d) will exceed the estimate or that any additional receipts, outside the estimate, will be received, he may, by notice to the Committee, prescribe the subschemes for which the additional amounts are to be expended: 1Provided that an amount exceeding 3,000,000 pounds or 5 per cent of the amount of the original subscheme, whichever is more, shall not be expended save with the prior approval of the Committee.

Variations. 9. (a) Upon the proposal of the person in charge of any budget head in the First Schedule, except budget head 02, "Knesset", the Minister of Finance may —

312 (1) by notice to the Committee transfer any amount of expenditure from one subscheme to another or a newly added subscheme of that budget head: Provided that he shall not in this manner vary any subscheme by an amount exceeding 3,000,000 pounds or 5 per cent of the original amount of the subscheme, whichever is more, save with the approval of the Committee; (2) by notice to the Committee increase the amount of revenue-conditioned expenditure in any subscheme, or add revenue-conditioned expenditure in a newly-added subscheme, of that budget head: Provided that he shall not in this manner vary any subscheme by an amount exceeding 3,000,000 pounds or 5 per cent of the original amount of the subscheme, whichever is more, save with the prior approval of the Committee; (3) by notice to the Committee transfer any amount of an authorisation-to-contract-a-Iiability from one subscheme to another of that budget head: Provided that he shall not in this manner vary any subscheme by an amount exceeding 6,0000,000 pounds or 10 per cent of the original amount of the subscheme, whichever is more, save with the prior approval of the Committee; (4) with the prior approval of the Committee increase the authorisation-to-contract-a-liability in any subscheme, or add an authorisation-to-contract-a-liability in a newly-added subscheme, of that budget head; (5) by notice to the Committee transfer any number of posts from one subscheme to another or a newly added subscheme of that budget head: Provided that he shall not in this manner vary any subscheme by a number of posts exceeding ten or 10 per cent of the original number of posts in the subscheme, whichever is more, save with the prior approval of the Committee. (b) In budget head 02, "Knesset", the Committee may, upon the proposal of the Chairman of the Knesset, transfer any amount, or number of posts, from one subscheme to another or a newly- added subscheme. (c) Upon the proposal of the person in charge of any budget head in the second part of the Second Schedule to the Bill, the Minister of Finance may — (1) by notice to the Committee transfer any amount of expenditure or of any authorisation-to-contract-a-liability from . one subscheme to another or a newly-added subscheme of that budget head: Provided that he shall not in this manner vary any scheme by an amount exceeding 6,000,000 pounds or 10 per cent of the original amount of the scheme, whichever is more, save with the prior approval of the Committee; (2) by notice to the Committee transfer any number of posts from one subscheme to another or a newly-added . subscheme of that budget head: Provided that he shall not in this manner vary any scheme by a number of posts exceeding twenty-five or 20 per cent of the original number of posts of the subscheme, whichever is more, save with the prior approval of the Committee. (d) The Minister of Finance may, with the approval of the Committee — (1) transfer any amount of expenditure from one budget head of the Bill to other budget heads in so far as such is required •— (a) for the discharge of a liability of the State under any enactment; (b) for the discharge of a liability of the State assumed before the 13th Nisan, 5737 (1st April, 1977); (c) for the performance of acts which by their nature have to be performed in the transition period; (d) for the discharge of a liability of an institution to the budget of which the Government contributes, assumed before the 13th Nisan, 5737 (1st April, 1977); Provided that the amount of any subscheme shall not exceed the amount appropriated to it in the Bill; (2) transfer any amount or number of posts from one budget head in the First Schedule to the Bill to other budget heads in so far as. such is required by changes in the structure or functions of Government Ministries, provided that the amounts transferred as aforesaid are expended for the purposes to which they were appropriated and that the posts transferred as aforesaid serve the purposes to which they were appropriated; the same shall apply where a transfer as aforesaid is required by changes in the structure or functions of business enterprises;; (e) The Minister of Finance may, by notice to the Committee, vary the numbering or title of any budget head, field of operation, scheme or subscheme, provided that no change occurs in the purpose to which the amount, or number of posts, is appropriated. (f) The Minister of Finance may, by notice to the Committee, transfer any amount, or number of posts, from any subscheme to budget head 47 of the Bill, "General Reserve"; the same shall apply in respect of budget head 87, "Reserve for Development Expenditure": 1Provided that the transfer shall in this case be from budget heads in Part B of the First Schedule to the Bill.

10. (a) The Minister of Finance may, by notice to the Committee, Use of prescribe the purposes for which the amounts and posts set outreserves . in budget head 47 of the Bill, "General Reserve", shall be expended or filled: Provided that he shall not without the prior approval of the Committee increase in this manner any subscheme by an amount exceeding 3,000,000 pounds or 5 per cent of the original amount of the subscheme, whichever is more, or by a number of posts exceeding ten or 10 per cent of the original number of posts of the subscheme, whichever is more. The same shall apply to the amounts of budget head 87 of the Bill, "Reserve for Development Expenditure": Provided that these may only be expended under heads of expenditure in Part B of the First Schedule to the Bill. (b) The Minister of Finance may, with the approval of the Committee, prescribe the purposes for which the amount set out in budget head 16 of the Bill, "Emergency Expenditure (Civil)" is to be expended. (c) The Minister of Finance may, by notice to the Committee, prescribe the apportionment of the amounts of budget heads 48 and 88 of the Bill, "Reserves for Price Increases": Provided that these may only be used to cover price increases in existing subschemes.

11. (a) Where a surplus amount remains under any of the budget Use of heads provided for by or under the Budget (Financial Year 1976) 3SlorftEe Law, 5736 —19761). other than budget head 02, "Knesset", the financial Minister of Finance may, during the transition period, permit such year 1976' amount to be used for another subscheme in that budget head, (b) Where a surplus amount remains under budget head 02, i) Chukkei Taktziv No. 69 of 5736, p. 3; LSI vol XXX, p. 302;

315 "Knesset", of the Budget (1976) Law, the Committee may, upon the proposal of the Chairman of the Knesset, permit that amount to be used for a subscheme in the same budget head. ,(c) Where a surplus amount remains under any of sections 47, 48, 87 and 88, "Reserves", of the Budget (1976) Law, the Minister of Finance may, with the approval of the Committee, permit it to be used during the transition period for a purpose prescribed by him. (d) Where the use of a surplus amount has been permitted under this section, such amount shall, with any such adaptation as may be appropriate, be added to the Budget for the Transition Period April-July 1977 as if it were a part thereof. (e) In this section, and in section 12, "surplus amount", in relation to revenue-conditioned expenditure, means an excess of receipts collected for financing the expenditure over the actual expenditure or an excess of the amount fixed for revenue-conditioned expenditure over the actual expenditure, whichever is less.

Special 12. (a) Where a surplus amount remains under any of the sub- surpluses. schemes provided for by or under the Budget (Financial Year 1976) Law, 5736— 1976, and enumerated in the Third Schedule to the Bill (such enumeration hereinafter referred to as "the Special Surpluses List"), the Minister of Finance may, during the transition period, permit it to be used for the subscheme in which it is included. (b) The Minister of Finance may, with the prior approval of the Committee, add a subscheme to the Special Surpluses List. (c) Where the use of a surplus has been permitted under this section, the amount permitted to be expended shall, with any such adaptation as may be appropriate, be added to the Budget for the Transition Period April-July 1977 as if it were a part thereof.

Linkage 13. In the transition period, the Government shall not, save with insurance. the approval of the Committee, undertake to indemnify a person for increases in the consumer price index or a change in the rate of the currency if the subject of the undertaking exceeds 10,000,000 pounds.

Advance 14. Notwithstanding the provisions of section 45 of the Bank Bank^flEad. of Israel Law> 5714 — 19541). the aggregate of the advance payments

*) Sefer Ha-Chukkim of 5714, p. 192; LSI vol. VIII, p. 163.

316 which the Bank of Israel is authorised to make to the Government in the transition period shall not exceed an amount prescribed by the Committee

15. The Minister of Finance shall submit to the Committee, by Supply of the 22nd Tevet, 5738 (1st January, 1978), particulars concerning— partlculars• (1) expenditure, including revenue-conditioned expenditure, in• curred; (2) receipts collected; (3) the number of posts filled, as the Committee may request.

16. (a) The Minister of Finance is charged with the implementation Implementation, of this Law and may make regulations as to any matter relating and^delegation to its implementation, including the further breakdown of sub- of powers, schemes, except subschemes in budget head 02 of the Bill, "Knesset". (b) The Chairman of the Knesset may make regulations as to the further breakdown of subschemes in budget head 02 of the Bill, "Knesset". (c) The Minister of Finance may delegate any of his powers under this Law, including the power to make regulations prescribing rules for the fiscal administration and accountancy of the State, but not including the power to make regulations with legislative effect.

17. This Law shall come into force on the 13th Nisan, 5737 Commencement. (1st April, 1977).

18. This Law shall be published in. Reshumot within fifteen days Publication, from the date of its adoption by the Knesset.

YITZCHAK RABIN YEHOSHUA 1RABINOVITZ Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State

31 BUDGET (TRANSITION PERIOD APRIL-JULY 1977) (AMENDMENT) LAW, 5737 — 1977 *

Amendment of 1. The Budget (Transition Period April-July 1977) Law, 5737 — hereinafter referred to as "the principal Law") shall be) (* ־ tltle1977 renamed "the Budget (April-September 1977) Law, 5737 — 1977".

General 2. The expression "the transition period" and "26.7 per cent"

amendments. snajj wnerever appearjng in the principal Law be respectively replaced by the expressions "the Budget period" and "43.4 per cent".

Amendment of 3. In section 1 of the principal Law, the definition of "the section 1. transition period" shall be replaced by the following definition: ""the Budget period" means the period from the 13th Nisan, 5737 (1st April, 1977) to the 18th Tishri, 5738 (30th Sep­ tember, 1977);".

Amendment of 4. In section 2 of the principal Law — section 2. (1) in subsection (a), the expression . ,"31,800,000,000: younds" shall be replaced by the expression "54,200,000,000 pounds" and the words "and with addition of an amount of 1,942,500,000 pounds" shall be added at the end; (2) subsection (b) shall be replaced by the following subsection : "(b) The Expenditure Budget consists of the following amounts: (1) 43.4 per cent of the amount specified in section 2 of the Bill minus the amount specified in budget head 84, "Payment of Debts", in the first column of the First Schedule to the Bill; (2) 6,527,000,000 pounds under budget head 84, "Pay­ ment of Debts"; (3) 1,442,500,000 pounds under a budget head added to the First Schedule to the Bill and called "Reserve for Expenditure Arising Out of Wage Agreements"; (4) 500,000,000 pounds added to budget head 47, "General Reserve"."; (3) in subsection (c), the words "minus budget heads 47, 48 87 and 88, "Reserves", and 84, "Payment of Debts"," shall be

* Passed by the Knesset on the 3rd Av, 5737 (18th July, 1977) and pub­ lished in Chukkei Taktziv No. 71 of the 13th Av, 5737 (28th July, 1977), p. 10; the Bill and an Explanatory Note were published in Chukkei Taktziv (Hatza'ot) No. 66 of 5737, p. 293. !) Chukkei Taktziv No. 70 of 5737, p. 2; supra, p. 309.

318 replaced by the words "minus budget head 84 "Payment of Debts" ".

6. In section 5 of the principal Law, the words "two thirds of Amendment of that amount" shall be replaced by the words "that amount".

7. In section 8 (e) of the principal Law, the expression "5 per cent" Amendment of shall be replaced by the expression "10 per cent". section 8.

8. In section 9 of the principal Law— Amendment of 9׳ section (1) in subsection (a) (1) and (2), the expression "5 per cent" shall be replaced by the expression "10 per cent";. (2) in subsection (c) (1), the expression "10 per cent" shall be replaced by the expression "20 per cent". 9. In section 10 of the principal Law — Amendment of (1) in subsection (a), the expression "5 per cent" shall be sectI0n 10- replaced by the expression "10 per cent"; (2) in subsection (c), the words "and the apportionment of the amount of budget head 46, "Reserve for Expenditure Arising Out of Wage Agreements" " shall be added at the end.

10. In section 11 of the principal Law— Amendment of (1) in subsection (a), the words "for another subscheme" shall sectIon 11 • be replaced by the words "for a subscheme". (2) in subsection (d), the words "to the Budget for the Transition Period April-July 1977" shall be replaced by the words "to the Budget for the Months April-September 1977".

11. In section 12 (c) of the principal Law, the words "to the Amendment of 12־ Budget for the Transition Period April-July 1977" shall be replaced sectlon by the words "to the Budget for the Months April-September 1977".

12. In section 15 of the principal Law, the words "the 22nd Tevet, Amendment of 15־ 1st January 1978)" shall be replaced by the words "the section) 5738 22nd Adar Bet, 5738 (1st March, 1978)".

13. This Law shall have effect from the date of the coming into Commencement, force of the principal Law.

MENAHEM BEGIN SIMCHA EHRLICH Prime Minister Minister of Finance

EFRAYIM KATZIR President of the State

319 BUDGET (FINANCIAL YEAR 1977) LAW, 5737 — 1977 *

Definitions. 1. In this Law —

"the financial year 1977" means the financial year beginning the 13th Nisan, 5737 (1st April, 1977) and ending the 22nd Adar Bet, 5738 (31st March, 1977);

"the Committee" means the Finance Committee of the Knesset;

"budget head" means an amount, or a number of posts, specified in a heading marked with a double broken line;

"field of operation" means an amount, or a number of posts, specified in a heading marked with a dash and two dots;

"scheme" means an amount, or a number of posts, specified in a heading marked with a double dash and a dot;

"subscheme" means an amount, or a number of posts, specified in an unmarked heading;

"person in charge of budget head" — (1) in respect of budget head 01, "President of the State", means the person appointed in that behalf by the President; (2) in respect of any other budget head — means the Minister designated by the Government or the person appointed by that Minister.

Expenditure 2. The Government may expend in the financial year 1977 an Budget and division thereof. amount of 123,900,000,000 pounds; the division of that amount into parts and of each part into budget heads, fields of operation, schemes and subschemes shall be as set out in the first column of the First Schedule, headlined "Expenditure".

Additional 3. Notwithstanding the provisions of section 2, the Government expenditure. is authorised to expend in the financial year 1977, with the prior

* Passed by the Knesset on the 10th Elul, 5737 (24th August, 1977) and published in Chukkei Taktziv No. 72 of the 28th Tishri, 5738 (10th October, 1977), p. 3; the Bill and an Explanatory Note were published in Chukkei Taktziv {Hatzdoi) No. 65 of 5737, p. 2.

320 approval of the Committee, additional amounts for purposes which shall be designated by the Committee after it appears to it that the revenue necessary to cover the additional expenditure will be received.

4. (a) In addition to the amounts which it is authorised to Revenue- expend under sections 2 and 3, the Government is authorised Expenditure to expend in the financial year 1977, as revenue-conditioned expen- Budget and diture, an amount of 7,371,900,000 pounds plus the amounts which 1 n will be added under section 10 (a) 2, provided that the receipts necessary to finance the expenditure are collected. (b) The division of the amount mentioned in subsection (a) into parts and of each part into budget heads, fields of operation, schemes and subschemes shall be as set out in the second column of the First Schedule, headlined "Revenue-Conditioned" Expenditure". (c) The Government is authorised to expend the amounts of the Revenue-Conditioned Expenditure Budget on condition that the amount expended on a particular subscheme does not exceed the amount of receipts which will actually be collected for that subscheme by the expiration of two months from the expiration of the financial year. (d) Receipts derived from a loan shall only be used to finance expenditure under budget heads in Part Two of the First Schedule.

5. In respect of a subscheme in the First Schedule in which an Authorisation to oon't f ct amount appears in the third column, headlined "Authorisation to liabilities. Contract Liabilities", no liability shall be contracted in the financial year 1977 save within the limits of that amount.

6. The Government may in the financial year 1977 fill 66,956 Manpower posts plus the posts which will be added under section 10 (a) (6); cemn8• the division of this number of posts into parts and of each part into budget heads, fields of operation, schemes and subschemes shall be as set out in the fourth column of the First Schedule, headlined "Manpower Ceiling".

7. (a) The amount appropriated in the Expenditure Budget under Security budget head 15, "Ministry of Defence", is hereinafter referred Budget• to as "the Security Budget"; the division of the Security Budget into fields of operation, schemes and subschemes shall be prescribed, upon the proposal of the Government, by a joint committee of

321 the Finance Committee and the Foreign Affairs and Security Committee of the Knesset. (b) A "Security (Revenue-Conditioned Expenditure) Budget" and a "Security (Business Enterprises) Budget" shall be added to the Security Budget, and authorisation to contract liabilities, as well as manpower ceilings, shall be indicated in the Security Budget; for these purposes, sections 4, 5, 6 and 9 shall apply mutatis mutandis to the Security Budget. (c) For the purposes of the Security Budget, every reference in this Law to the Committee shall be deemed to be a reference to the joint committee mentioned in subsection (a).

Transferred 8. (a) If the transferred revenue from purchase tax exceeds revenue. 375,000,000 pounds, the Government may expend the excess revenue within six months from the expiration of the financial year 1977 for the purpose stated in budget head 17, "Transferred Revenue"; the same shall apply if the transferred revenue from vehicle licence fees exceeds 80,000,000 pounds or the transferred revenue from land appreciation tax exceeds 100,000,000 pounds or the transferred revenue from additional tax exceeds 90,000,000 pounds.

(b) In this section —

"transferred revenue from purchase tax" means 5 per cent of the total revenue received from purchase tax;

"transferred revenue from vehicle licence fees" means 42 per cent of the total revenue received from vehicle licence fees;

"transferred revenue from land appreciation tax" means 60 per cent of the total revenue received from land appre• ciation tax;

"transferred revenue from additional tax" means 33% per cent of the total revenue received from additional tax under the Land Appreciation Tax Law, 5733 —1963 1).

Business 9. (a) In addition to the amounts which it is authorised to Budget"868 expend under sections 2, 3, 4, 7 and 8, the Government is

!) Sefer Ha-Chukkim of 5723, p. 156; LSI vol. XVII, p. 193.

322 authorised to expend in the financial year 1977 the amounts specified in the first column of the second part of the Second Schedule (such amounts hereinafter referred to as the "Business Enterprises Budget"); the division of the Business Enterprises Budget into budget heads, fields of operation, schemes and sub- schemes shall be as set out in that part. (b) The provisions of section 5 shall apply to a subscheme in the second part of the Second Schedule in which any amount appears in the third column. (c) In addition to the number of posts which it is authorised to fill under section 6, the Government is authorised to fill in the financial year 1977 the number of posts specified in the fourth column of the second part of the Business Enterprises Budget; the division of the said posts into budget heads, fields of operation, schemes and subschemes shall be as set out in that part. (d) The estimated receipts to cover the Business Enterprises Budget in the financial year 1977 are as set out in the first part of the Second Schedule. (e) If the Minister of Finance considers that any of the amounts of receipts set out in the first part of the Second Schedule will exceed the estimate or that any additional receipts, outside the estimate, will be received, he may, by notice to the Committee, prescribe the subschemes for which the additional amounts are to be expended: Provided that an amount exceeding 3,000,000 pounds or 10 per cent of the amount of the original subscheme, whichever is more, may only be expended with the prior approval of the Committee. (f) Notwithstanding the provisions of section 15 (b), an amount appropriated under the Business Enterprises Budget to the payment of the consideration for any work, service or property shall be deemed to have been expended when the work has been carried out or the service or property for which it is intended to be paid has been received. (g) In this section, "receipts" includes the value of services rendered and property supplied in the financial year 1977.

10. (a) Upon the proposal of the person in charge of any budget Variations, head in the First Schedule, except budget head 02, "Knesset", the Minister of Finance may •— (1) by notice to the Committee transfer any amount of

323 expenditure from one subscheme to another or a newly added subscheme of that budget head: Provided that he shall not in this manner vary any subscheme by an amount exceeding 3,000,000 pounds or 10 per cent of the original subscheme, whichever is more, save with the approval of the Committee; (2) by notice to the Committee increase the amount of revenue-conditioned expenditure in any subscheme, or add revenue-conditioned expenditure in a newly-added subscheme, of that budget head: Provided that he shall not in this manner vary any subscheme by an amount exceeding 3,000,000 pounds or 10 per cent of the amount of the original subscheme, whichever is more, save with the prior approval of the Committee; (3) by notice to the Committee transfer any amount of an authorisation-to-contract-a-liability from one subscheme to another of that budget head; Provided that he shall not in this manner vary any subscheme by an amount exceeding 6,000,000 pounds or 10 per cent of the amount of the original subscheme, save with the prior approval of the Committee; (4) with the prior approval of the Committee increase the authorisation-to-contract-a-liability in any subscheme, or add an authorisation-to-contract-a-liability in a newly- added subscheme, of that budget head; (5) by notice to the Committee transfer any number of posts from one subscheme to another or a newly-added subscheme of that budget head: Provided that he shall not in this manner vary any subscheme by a number of posts exceeding ten or 10 per cent of the number of posts in the original subscheme, whichever is more, save with the prior approval of the Committee; (6) with the prior approval of the Committee increase the number of posts in any subscheme, or add posts in a newly-added subscheme, of that budget head: Provided that the increase or addition arises out of the transfer of employees to the State Service, from an institution to whose budget the Government contributes, in consequence of the transfer of a function from that institution to the State. (b) In budget head 02, "Knesset", the Committee may, upon the proposal of the Chairman of the Knesset, transfer any amount or number of posts from one subscheme to another or a newly-added subscheme. (c) Upon the proposal of the person in charge of any budget head in the second part of the Second Schedule, the Minister of Finance may — (1) by notice to the Committee transfer any amount of contract-a-liability from־expenditure or of an authorisation-to one subscheme to another or a newly-added subscheme of that budget head: Provided that he shall not in this manner vary any scheme by an amount exceeding 6,000,000 pounds or 20 per cent of the amount of the original scheme, whichever is more, save with the prior approval of the Committee; (2) by notice to the Committee transfer any number of posts from one subscheme to another or a newly-added subscheme of that budget head: Provided that he shall not in this manner vary any scheme by a number of posts exceeding twenty-five or 20 per cent of the number of posts of the original subscheme, whichever is more, save with the prior approval of the Committee. (d) The Minister of Finance may, by notice to the Committee — (1) transfer any amount or number of posts from one budget head in the First Schedule to other budget heads in so far as such is required by changes in the structure or functions of Government Ministries, provided that the amounts transferred as aforesaid are expended for the purposes to which they were appropriated and that the posts transferred as aforesaid serve the purposes to which they were appropriated; the same shall apply in the event of changes in the structure or functions of business enterprises; (2) vary the numbering or title of any budget head, field of operation, scheme or subscheme, provided that no change occurs in the purpose to which the amount, or number of posts, is appropriated. (e) The Minister of Finance may, by notice to the Committee, transfer any amount, or number of posts, from any subscheme to budget head 47, "General Reserve"; the same shall apply in respect of budget head 87, "Reserve for Development Expenditure": Provided that the transfer shall in this case be from budget heads in Part B of the First Schedule.

Use of 11. (a) The Minister of Finance may, by notice to the Committee, reserves. prescribe the purposes for which the amounts and posts set out in budget head 47, "General Reserve", shall be expended or filled: Provided that he shall not in this manner increase any sub- scheme by an amount exceeding 3,000,000 pounds or 10 per cent of the amount of the subscheme, whichever is more, or by a number of posts exceeding ten or 10 per cent of the number of posts of the subscheme, whichever is more, save with the prior approval of the Committee. The same shall apply to the amounts of budget head 87, "Reserve for Development Expenditure": Provided that these may only be expended under heads of expenditure in Part B of the First Schedule. (b) The Minister of Finance may, with the prior approval of the Committee, prescribe the purposes for which the amount set out in budget head 16, "Emergency Expenditure (Civil)" is to be expended. (c) The Minister of Finance may, by notice to the Committee, prescribe the apportionment of the amounts of budget heads 48 and 88, "Reserves for Price Increases", provided that these may only be used to cover price increases in existing subschemes, and the apportionment of the amount of budget head 46, "Reserve for Expenditure Arising Out of Wage Agreements", provided that this amount may only be used for expenditure arising out of wage agreements.

Use of 12. (a) Where a surplus amount remains under any of the budget surpluses of 1976 Budget. heads fixed in or under the Budget (Financial Year 1976) Law, 5736— 19761). other than budget head 02, "Knesset", the Minister of Finance may, within six months from the expiration of the financial year 1976, permit such amount to be used for the subscheme in which it was included or, subject to the provisions of section 10 of the said Law, for another subscheme in the same budget head. After the expiration of the said six months, the Minister of Finance may, with the prior approval of the Committee, permit any such amount to be used for any subscheme in the same budget head. (b) Where a surplus amount remains under budget head 02,

1J Chukkei Taktziv No. 69 of 5736, p. 3; LSI vol. XXX, p. 302.

326 "Knesset", of the Budget Law for the financial year 1976, the Committee may, on the proposal of the Chairman of the Knesset, permit it to be used for a subscheme within the same budget head. (c) Where a surplus amount remains under any of budget heads 47, 48, 87 and 88, "Reserves", in the Budget Law for the financial year 1976, the Minister of Finance may, with the prior approval of the Committee, permit it to be used for a purpose prescribed by him. (d) Where the use of a surplus amount has been permitted under this section, such amount shall, with any such adaptation as may be appropriate, be added to the Budget for the financial year 1977 as if it were a part thereof. (c) In this section and in section 13, "surplus amount", in relation to revenue-conditioned expenditure, means an excess of receipts collected to finance that expenditure over the actual expen• diture as an excess of the amount fixed for the revenue-conditioned expenditure over the actual expenditure, whichever is less.

13. (a) Where a surplus amount remains under any of the sub- Special surpluses schemes fixed in or under the Budget (Financial Year 1976) Law, 5736 —1976, and enumerated in the Third Schedule (such enumera• tion hereinafter referred to as "the Special Surpluses List"), the Minister of Finance may, within six months from the expiration of the financial year 1976, permit it to be used for the subscheme in which it was included. After the expiration of the said six months, the Minister of Finance may permit it to be so used with the prior approval of the Committee. (b) The Minister of Finance may, with the prior approval of the Committee, add a subscheme to the Special Surpluses List. (c) Where the use of a surplus has been permitted under this section, the amount permitted to be expended shall, with any such adaptation as may be appropriate, be added to the Budget for the financial year 1977 as if it were a part thereof.

14. Notice to, or a request for approval by, the Committee under Time for notice sections 10 to 13 shall bbee filed not later than the 21st Adar Alef, committee.40 5738 (28th February, 1978).

15. (a) An amount which has been appropriated shall be deemed Appropriated to have been expended when the person entitled thereto has d^med to been sent a notification that his account with the Accountant- have been General has been credited therewith. expended.

327 (b) An amount appropriated to the payment of the consideration for any work, service or property shall be deemed to have been expended when the work has been carried out or the service or property has been received, provided that it is paid by the expiration of one month from the expiration of the financial year.

Advance 16. (a) The Government is hereby authorised to accept from the payments by Baak of Bank of Israel, and the Bank of Israel is hereby authorised to Israel. make to the Government — (1) an advance payment of an amount not exceeding 4,000,000,000 pounds to finance its expenditure in the financial year 1977; (2) an advance payment of an amount not exceeding 560,000,000 pounds to finance the Binational Industrial Research and Development Foundation. (b) The conditions, and times of repayment, of each of the advance payments under subsection (a) shall be prescribed by agreements between the Minister of Finance and the Governor of the Bank of Israel with the approval of the Committee. (c) This section shall not derogate from the provisions of section 45 of the Bank of Israel Law, 5714 —19541), concerning provisional advance payments.

linkage 17. In the financial year 1977, the Government shall not, save insurance. with the prior approval of the Committee, give an undertaking to indemnify for an increase in the consumer price index or a change in the rate of the currency where the subject-matter of the undertaking exceeds 10,000,000 pounds.

Report. 18. (a) Within six months from the expiration of the financial year 1977, the Minister of Finance shall submit to the Knesset — (1) a report of the receipts collected; (2) a report of the expenditure, including revenue-conditioned expenditure, incurred; (3) a report of the number of posts filled. (b) The reports shall be drawn up with reference to the 1977 Budget and the 1977 Business Enterprises Budget in a form enabling a comparison of the amounts of expenditure incurred and the number of posts filled with the amounts and the number

*) Sefer Ha-Chukkim of 5714, p. 192; LSI vol. VIII, p. 163.

328 of posts set out in the budget heads, fields of operation, schemes and subschemes.

19. (a) The Minister of Finance is charged with the implementation Implementation, of this Law and may make regulations as to any matter relating an^delegation to its implementation, including the further breakdown of sub- of powers, schemes, except subschemes in budget head 02, "Knesset". (b) The Chairman of the Knesset may make regulations as to the further breakdown of subschemes in budget head 02 — "Knesset". (c) The Minister of Finance may delegate any of his powers under this Law, including the power to make regulations prescribing rules for the fiscal administration and accountancy of the State, but not including the power to make regulations with legislative effect.

20. The amounts which the Government may expend or for inclusion of which it may contract liability, and the posts which it may fill, Budgeteptcmber under this Law include the amounts which it has been authorised to expend or to contract liability for, and the posts which it has been authorised to fill, under the Budget (April-September 1977) Law, 5737 — 1977 1).

21. (a) This Law shall have effect from the 13th Nisan, 5737 Commencement (1st April, 1977). and saving• (b) This Law shall not derogate from the validity of acts validly done under the Budget (April-September 1977) Law, 5737 — 1977.

22. This Law shall be published in Reshumot within two months Publication, from the date of its adoption.

(Following are condensed versions, as appearing at the beginning of the First and Second Schedules, respectively, of the Ordinary and Development Budgets and the Business Enterprises Budget. The remainder of the First and Second Schedules, containing the further breakdown of the said Budgets, and the Third Schedule, containing the Special Surpluses List (see section 13 of the Law), are omitted in this translation).

0 Chukkei Taktziv No. 70, p. 2; supra, p. 309.

329 _ Authori- A sation to Manpower־A^UE ^ .... Expenditure Conditioned Contract c^ung

Expenditure Liability.

(1,000 (1,000 (1,000 pounds) pounds) pounds)

GRAND TOTAL 123,960,000 7,371,090 66,956 Part A: Ordinary Expenditure 96,560,000 4,631,260 66,956 PartB: Development Expenditure and Cap­ ital Account 27,400,000 2,739,850 Part A: Ordinary Expenditure 96,560,000 4,631,240 66,956 Government and Administration 3,936,276 164,430 30,213 01 President of the State 3,600 34 02 Knesset 48,565 50 03 Members of Government 2,250 04 Prime Minister's Office 46,100 5,320 782 05 Ministry of Finance 595,161 56,305 1,000 7,161.5 06 Ministry of the Interior 99,400 9,210 767.5 07 Ministry of Police 1,348,500 50,960 18,621 08 Ministry of Justice 172,200 9,195 1,880 33,390־ Ministry of Foreign Affairs 493,500 967 5,050 09 11 State Comptroller's Office 60,000 12 Benefits and Compensation 764,000 13 Sundry Expenditure 167,000 ׳. Financing of Political Parties .146,000 14 Defence 10,775,000 15 Ministry of Defence 40,120,000 16 Emergency Expenditure (Civil) 265,000 ni.ooo Contribution to Budget of Israel-held Areas 390>000 Local Authorities 4,227,000 17 Transferred Revenue 2,120,000 18 Grant-in-Aid to Local Authorities .. 2,107,000 Social and Community Services 18,435,570 4,296,097 27,635 20 Ministry of Education and Culture... 5,310,000 49,808 3^032. 21 Higher Education 1,558,000 22 Ministry of Religious Affairs 234,850 5,140 441 23 Ministry of Labour 386,600 51,200 1,900

* Aggregates of amounts set out in subschemes in the column "Authorisation to Contract Liability".

330 Revenue- j•. ^ J•*•A sation to Manpower Expenditure Conditioned Contract Ceilmg

Expenditure Liabuity.

(1,000 (1,000 (1,000 pounds) pounds) pounds)

24 Ministry of Health 1,646,700 1,375,735 18,281.5 25 Pensions to Invalids 424,000 1,000 72 26 Ministry of Social Welfare 1,023,000 77,149 90 2,344.5 27 National Insurance 4,101,000 28 Contribution to Broadcasting Autho• rity 50,000 29 Ministry of Construction and Housing 815,000 4,780 95,600 1,017.5 30 Ministry of Immigrant Absorption ... 121,420 42,080 15,233 546 32 Subsidies for the Prices of Basic Commodities 2,765,000 2,688,205

Economic Purposes 7,611,739 170,712 9,108 33 Ministry of Agriculture 349,000 81,327 3,669 34 Ministry of Energy and Infrastructure 26,659 19,710 140 35 Atomic Energy Commission 175,000 36 Ministry of Industry, Commerce and Tourism 379,880 36,645 1,025 37 Tourism 85,100 17,150 13,700 271 38 Encouragement of Exports 6,040,000 40 Ministry of Transport 120.400 6,459 1,468.5 41 Contribution to Railways Budget ... 91,000 42 Grants-in-Aid and Subsidies to Transport 230,000 43 Public Works Department and Sur• veys 114,700 9,521 2,474.5 45 Payment of Interest 14,750,000 Reserves 6,824,415 46 Reserve for Expenditure Arising out of Wage Agreements 1,442,500 41 General Reserve 4,041,915 48 Reserve for Price Increases 1,340,000

331 Revenue- Authorisation to Expenditure Conditioned Contract Expenditure Liability

(1,000 (1,000 pounds) pounds)

Part B: Development Expenditure and Cap- 27,400,000 2,730,850 10,774,500 2,739,850 Investments in Government and Ad- v92,150 51 43,700 158,800 52 39,000 48,175 53 9,450 57 181,000 600,000 854,500 Investments in Social and Commun- 5,646,600 217,000 60 430,000 271,500 61 140,700 63 52,600 12,120 64 Employment and Vocational Training 96,000 81,300 67 Health 519,000 65,000 476,250 68 83,300 7,000 60,450 70 4,325,000 145,000 5,514,550 Investments in Branches of the Eco- 4,854,750 923,030 72 936,750 41,100 1,174,865 73 291,000 35,000 335,000 75 1Development of Sources of Energy... 640,000 1,070,000 1,820,500 76 Industry and Handicraft 1,697,000 94,750 80,000 78 47,500 59,500 124,100 79 243,000 37,680 224,510 80 209,500 5,000 85,000 81 455,000 580,000 83 Various Enterprises :'. 335,000 51,000 84 15,780,000 85 Budgetary Funds for Short-Term 150,000 87 Reserve for Development Expendi- 478,000 88 Reserve for Price Increases 217,500

332 FORECAST OF RECEIPTS AND LOANS FOR THE FINANCIAL YEAR 1977 Forecast of Revenue (1,000 pounds) GRAND TOTAL 1234)60,000 Part A: Ordinary Receipts 96,560,000 Part B: Receipts from Loans and Capital Account 27,400,000 Part A: Ordinary Receipts 96,560,000 Taxes and Compulsory Payments 67,800,000 Income and Property Taxes 37,975,000 01 Income Tax 27,925,000 02 Value Added Tax from Non-Profit Organisations 600,000 03 Appreciation Tax (40 p. ct.) 60>000 04 Additional Tax (%) 210•000 05 Property Tax (less Compensation Fund) 880,000 06 Value Added Tax from the Financial Sector 400,000 07 Employers' Tax 1,900,000 Taxes on Expenditure 33,145,000 11 Customs Duty and Import Charge 9,820,000 12 Value Added Tax 9,330,000 13 Purchase Tax (95 p. ct.) 7,175,000 15 Excise 1,060,000 000׳900>2 ״...״!...״."״".Fuel Tax 18 19 Foreign Travel Tax 390,000 650000׳ Stamp Duty 20 22 Defence Stamp Impost '.. 600,000 23 Increment Tax on Stock 50-00° 24 Vehicle Licence Fees (58 p. ct.) 105>000 25 Other Licensing Fees 365,000 26 Services Import Tax 700,000 Compulsory Loan and War Damage Compensa­ tion Tax 2,035,000 28 Employers' Sayings Loan 1,600,000 30 Compensation Fund '. 260,000 31 War Loan I7*-000 Allocation in Lieu of Property Rate... (—)1,475,000 Transferred Revenue 2,120,000 32 To Local Authorities Direct 1,705,000 1) Property Rate Substitute (4.828 p. ct.) 1,475,000 2) Vehicle Fees (21 p. ct.) 40,000 3) Land Appreciation Tax (60 p. ct.) 90,000 4) Additional Tax (%) 1°0,000

333 33 By Way of General Grant-in-Aid 415000־ (Ministry of the Interior) 1) Purchase Tax (5 p. ct.) 375,000 2) Vehicle Fees (21 p. ct.) 40•000 Interest and Profits 2,773,000 35 Collection of Interest 1,500,000 36 Interest from Economic Units 15,500 37 Interest from Business Enterprises 530,000 38 Interest from Government Companies 22,000 5500׳ Interest from Statutory Authorities 39 700000׳ Profits of Bank of Israel 40 Royalties *53'000 42 Royalties from Business Enterprises 580,000 43 Royalties from Natural Resources 73,000 Sundry Receipts 600'000 46 Repayments o/a Budgets of Earlier Years 100,000 47 Revenue from Various Services 500,000 Transfer from Part B 24'734'000 Part B: Receipts from Loans and Capital Account 27,400,000 Repayment of Investments and Government Loans 1,250,000 51 Collection of Principal and Sale of Property 600,000 30,100׳ Depreciation, Economic Units 52 54 Depreciation, Business Enterprises 190,100 55 Depreciation, Statutory Authorities 4,500 56 Depreciation, Government Companies 8>800 61 Revenue o/a Participation in Communications Investments 381,000 62 Revenue from Ports Authority and Jaffa Port 550 63 Revenue of Israel Lands Authority 35,050 Allocations for Pensions and Compensation 274,000 71 Allocations by Economic Units 94,000 72 Allocation by Business Enterprises 180,000 Internal Loans 17,200,000 81 Loan from National Insurance Institute 3,900,000 82 Revenue from Emissions and Deposits.^ 13,300,000 Foreign Loans and Grants-in-Aid 28,850,000 91 Food Surpluses 100,000 92 Foreign Loans and Grants-in-Aid 28,750,000 Advance Payments from Bank of Israel 4,560,000 93 Advance Payment for Financing of Expenditure... 4,000,000 94 Advance Payment for Financing of Binational Foundation 560,000 Transfer to Part A (-)24,734,000

334 Authorisation to ct CManpower L£S ^

(1,000 (1,000 pounds) pounds)

Business Enterprises

Part One: Revenue 13,883,573 89 Treasury Enterprises 216,010 90 Housing Enterprises 3,947,100 91 Productivity Institute 27,890 92 Educational Equipment Institute 13,093 93 Railways 237,350 94 Aerodromes 294,880 95 Jaffa Port 2'250 96 Postal Enterprises 3,950,000 97 Trading Account 4,600,000 98 Israel Lands Administration 525,000 99 Saving-for-Building Scheme 60,000

Part Two: Expenditure 13,883,573 18,657 89 Treasury Enterprises 216,010 869 90 Housing Enterprises 3,947,100 3,971,750 91 Productivity Institute 37,890 295 92 Educational Equipment Institute 13,093 64 93 Railways 237,350 1,928 94 Aerodromes : 294,880 923 95 Jaffa Port 2,250 3 96 Postal Enterprises 3,950,000 97 Trading Account 4,600,000 1,800,000 14,005 98 Israel Lands Administration 525,000 167,000 99 Saving-for-Building Scheme 60,000 570

335 INDEX OF LAWS IN THE ORDER OF THE DATES OF THEIR ADOPTION BY THE KNESSET

Title Date of Adoption

Local Authorities (Business Tax) Ordinance (Amendment 2nd Cheshvan, 5737 No. 7) Law (26th October, 1976) Motor Vehicles Insurance Ordinance (Amendment No. 3) 2nd Cheshvan, 5737 Law (26th October, 1976) 23rd Cheshvan, 5737 Settlement of Labour Disputes (Amendment No. 3) Law (16th November, 1976) 23rd Cheshvan, 5737 Chamber of Advocates (Amendment No. 10) Law (16th November, 1976) 29th Cheshvan, 5737 David Ben-Gurion Law (22nd November, 1976) 1st Kislev, 5737 Assurance of Insurance Benefits (Third-Party) Law (23rd November, 1976) State of Israel Bonds (Fifth Development Investment Issue) 7th Kislev, 5737 Law (29th November, 1976) Defence (Finance) Regulations (Continuance in Force) Law 7th Kislev, 5737 (29th November, 1976) Development Loan (Amendment No. 16) Law 7th Kislev, 5737 (29th November, 1976) 7th Kislev, 5737 National Defence Loan (Amendment No. 6) Law (29th November, 1976) 8th Kislev, 5737 Scholarships (Registration) Law (30th November, 1976) 8th Kislev, 5737 Planning and Building (Temporary Provisions) Law (30th November, 1976) 15th Kislev, 5737 Loan (Cost-of-Living Allowance) (Amendment) Law (7th December, 1976) 16th Kislev, 5737 Encouragement of Investments (Large-Capital Companies) (8th December, 1976) (Amendment) Law 22nd Kislev, 5737 Homes (Supervision) (Amendment) Law (14th December, 1976) 22nd Kislev, 5737 Severance Pay (Amendment No. 6) Law (14th December, 1976) 22nd Kislev, 5737 Severance Pay (Amendment No. 7) Law (14th December, 1976) 28th Kislev, 5737 Emergency Regulations (Possession and Presentation of (20th December, 1976) Identity Certificate) (Extension of Validity) Law

336 Title Date of Adoption

Commodities and Services (Control) (Amendment No. 6) 28th Kislev, 5737 Law (20th December, 1976) Engineering Construction Contractors (Registration) 29th Kislev, 5737 (Amendment No. 4) Law (21st December, 1976) Engineers and Architects (Amendment No. 3) Law 29th Kislev, 5737 (21st December, 1976) Invalids (Nazi Persecution) (Amendment No. 4) Law 1st •Tevet, 5737 (22nd December, 1976) Military Justice (Amendment No. 9) Law 7th Tevet, 5737 (28th December, 1976) Employment Service (Amendment No. 4) Law 7th Tevet, 5737 (28th December, 1976) Prevention of Dumping Law 14th Tevet, 5737 (4th January, 1977) Eighth Knesset (Dissolution) Law 15th Tevet, 5737 (5th January, 1977) Emergency Regulations (Commodities and Services (Con• 15th Tevet, 5737 trol) — Further Provisions) (Extension of Validity) Law (5th January, 1977) Associations of Towns (Amendment No. 2) Law 20th Tevet, 5737 (10th January, 1977) 21st Tevet, 5737 National Energy Authority Law (11th January, 1977) 28th Tevet, 5737 Binational Science Foundation Law (18th January, 1977) 12th Shevat, 5737 Penal Law Amendment (Interruption of Pregnancy) Law (31st January, 1977) 12th Shevat, 5737 Knesset Elections (Amendment No. 6) Law (31st January, 1977) 12th Shevat, 5737 Elections (Ninth Knesset) (Temporary Provisions) Law (31st January, 1977) 14th Shevat, 5737 Local Authorities (Benefits to Head and Deputy Heads) (2nd February, 1977) Law 20th Shevat, 5737 State Service (Benefits) (Amendment No. 16) Law (8th February, 1977) 20th Shevat, 5737 Political Parties (Financing) (Temporary Provisions) Law (8th February, 1977) 28th Shevat, 5737 Discharged Soldiers (Reinstatement in Employment) (16th February, 1977) (Amendment No. 7) Law

337 Title Date of Adoption

National Insurance (Amendment No. 25) Law 28th Shevat, 5737 (16th February, 1977) Local Authorities (Elections) (Temporary Provisions) Law 3rd Adar, 5737 (21st February, 1977) Council for Higher Education (Amendment No. 6) Law 5th Adar, 5737 (23rd February, 1977) Knesset Building and Precincts (Amendment) Law 5th Adar, 5737 (23rd February, 1977) Emergency Regulations (Control of Vessels) (Amendment • 11-th Adar, 5737 No. 3) Law (1st March, 1977) 11th Adar, 5737 State Service (Benefits) (Amendment No. 17) Law (1st March, 1977) 11th Adar, 5737 Wage Protection (Amendment No. 12) Law (1st March, 1977) 11th Adar, 5737 State Service (Benefits) (Amendment No. 18) Law (1st March, 1977) 11th Adar, 5737 Severance Pay (Amendment No. 9) Law (1st March, 1977) 12th Adar, 5737 State Comptroller (Temporary Provision) Law (2nd March, 1977) 18th Adar, 5737 Artisans Licensing Law (8th March, 1977) 18th Adar, 5737 Employment Service (Amendment No. 5) Law (8th March, 1977) 18th Adar, 5737 National Insurance (Amendment No. 26) Law (8th March, 1977) 18th Adar, 5737 National Insurance (Amendment No. 27) Law (8th March, 1977) 24th Adar, 5737 Oil in Navigable Waters Ordinance (Amendment No. 3) (14th March, 1977) Law 25th Adar, 5737 Air Navigation (Security in Civil Aviation) Law (15th March, 1977) 25th Adar, 5737 Youth (Trial, Punishment and Modes of Treatment) (15th March, 1977) (Amendment) Law 25th Adar, 5737 .' Psychologists Law (15th March, 1977) 26th Adar, 5737 Savings Loan Law (16th March; 1977)

338 Title Date of Adoption

Defence Stamp (Amendment and Extension of Period of 26th Adar, 5737 Operation) (Amendment No. 13) Law (16th March, 1977) Fallen Soldiers' Families (Pensions and Rehabilitation) 26th Adar, 5737 (Amendment No. 12) Law (16th March, 1977) Small Claims (Jurisdiction) (Amendment) Law 26th Adar, 5737 (16th March, 1977) Invalids (War against the Nazis) (Amendment No. 8) Law 26th Adar, 5737 (16th March, 1977) Advance Payment Law 26th Adar, 5737 (16th March, 1977) Development Loan (Amendment No. 17) Law 26th Adar, 5737 (16th March, 1977) Estate Duty (Amendment No. 7) Law 26th Adar, 5737. (16th March, 1977) Acquisition for Public Purposes (Amendment of Provi­ 26th Adar, 5737 sions) (Amendment :No. 2) Law (16th March, 1977) National Insurance (Amendment No. 28) Law 26th Adar, 5737 (16th March, 1977) National Insurance (Amendment No. 29) Law 26th Adar, 5737 (16th March, 1977) Severance Pay (Amendment No. 10) Law 26th Adar, 5737 (16th March, 1977) Victims of Hostile Action (Pensions) (Amendment No. 3) 26th' Adar, 5737 Law (16th March, 1977) 26th Adar, 5737 Israel Film Encouragement (Amendment No. 2) Law (16th March, 1977) 26th Adar, 5737 State Service (Discipline) (Amendment No. 5) Law (16th March, 1977) 26th Adar, 5737 Aerodromes Authority Law (16th March, 1977) 26th Adar, 5737 Income Tax Ordinance (Amendment No. 25) Law (16th March, 1977) 5737־ ',26th Adar Encouragement of Capital Investments (Amendment No. (16th March, 1977) 15) Law 5737״10th Nisanr Emergency Regulations (Protection of Educational Institu­ (29th March, 1977) tions) (Extension of Validity) Law 12th Nisan, 5737 Budget (Transition Period April-July 1977) Law (31st March, 1977)

339 Title Date of Adoption

National Insurance Law (Amendment No. 30) Law 14th Iyar, 5737 (2nd May, 1977) Trade in Used Vehicles Law 28th Iyar, 5737 (16th May, 1977) Partnership Ordinance (Amendment) Law 11th Av, 5737 (26th July, 1977) Standard Contracts (Amendment No. 2) Law 11th Av, 5737 (26th July, 1977) Budget (Transition Period April-July 1977) (Amendment) 13th Av, 5737 Law. (28th July, 1977) Knesset Committees (Labour and Social Affairs Commit• 19th Av, 5737 tee) Law (3rd August, 1977) Emergency Regulations (Commodities and Services (Con• trol)— Further Provisions) (Extension of Validity (No. 19th Av, 5737 2) Law (3rd August, 1977) Land (Amendment No. 5) Law 19th Av, 5737 (3rd August, 1977) Criminal Procedure (Amendment No. 9) Law 19th Av, 5737 (3rd August, 1977) Defence Army of Israel (Permanent Service) (Benefits) 19th Av, 5737 (Amendment No. 10) Law (3rd August, 1977) Land Appreciation Tax (Transitional Provisions) (Amend• (3rd August, 1977) ment and Extension of Validity) Law 19th Av, 5737 Income Tax Ordinance (Amendment No. 28) Law 19th Av, 5737 (3rd August, 1977) Courts (Amendment No. 7) Law 10th Elul, 5737 (24th August, 1977) Budget (Financial Year 1977) Law 10th Elul, 5737 (24th August, 1977)

CONSOLIDATED VERSION

Title of Law Date of Publication

Legal Assistance to Foreign States Law 9th Adar, 5737 (27th February, 1977)

340 ALPHABETICAL INDEX OF LAWS

Title

A Acquisition for Public Purposes (Amendment of Provisions) (Amend• ment No. 2) Law, 5737 — 1977 180 Advance Payment Law, 5737— 1977 ... 175 Aerodromes Authority Law, 5737 — 1977 228 Air Navigation (Security in Civil Aviation) Law, 5737— 1977 145 Artisans Licensing Law, 5737 — 1977 137 Associations of Towns (Amendment No. 2) Law, 5737 — 1977 71 Assurance of Insurance Benefits (Third Party) Law, 5737 — 1976 ... 15

B Binational Service Foundation Law, 5737— 1977 81 Budget (Transition Period April-July 1977) Law, 5737 — 1977 ... 309 Budget (Transition Period April-July 1977) (Amendment) Law, 5737 — 1977 318 Budget (Financial Year 1977) Law, 5737 — 1977 320

C Chamber of Advocates (Amendment No. 10) Law, 5737 — 1976 ... 7 Commodities and Services (Control) (Amendment No. 6) Law, 5737 — 1976 41 Council of Higher Education (Amendment No. 6) Law, 5737 — 1977 107 Courts (Amendment No. 7) Law, 5737— 1977 ... ., 308 Criminal Procedure (Amendment No. 9) Law, 5737 — 1977 ...... 297

D David Ben-Gurion Law, 5737 — 1976 10 Defence Army of Israel (Permanent Service) (Benefits) (Amendment No. 10) Law, 5737— 1977 299 Defence (Finance) Regulations (Continuance in Force) Law, 5737 — 1976 19 Defence Stamp (Amendment and Extension of Period of Operation) (Amendment No. 13) Law, 5737 — 1977 167 Development Loan (Amendment No. 16) Law, 5737 — 1976 ...... 20 Development Loan (Amendment No. 17) Loan, 5737 — 1976 176 Discharged Soldiers (Reinstatement in Employment) (Amendment No. 7) Law, 5737— 1977 97

341 Title

E Eighth Knesset (Dissolution) Law, 5737 — 1977 ...... 61 Elections (Ninth Knesset) (Temporary Provisions) Law, 5737— 1977 89 Emergency Regulations (Control of Vessels) (Amendment No. 3) Law, 5737 — 1977 110 Emergency Regulations (Commodities and Services (Control) — Further Provisions) (Extension of Validity) Law, 5737 —1977 ... 62 Emergency Regulations (Commodities and Services (Control) — Further Provisions) (Extension of Validity) (No. 2) Law, 5737 — 1977 ... 293 Emergency Regulations (Possession and Presentation of Identity Cer- tifiicate) (Extension of Validity) Law, 5737— 1976 40 Emergency Regulations (Protection of Educational Institutions) (Exten• sion of Validity) Law, 5737 — 1977 271 Employment Service (No. 4) Law, 5737— 1976 58 Employment Service (No. 5). Law,• 5737— 1977 142 Encouragement of Capital Investments (Amendment No. 15) Law, 5737 — 1977 261 Enocuragement of Investments (Large-Capital Companies) (Amend• ment) Law, 5737 — 1976 28 Engineering Construction Contractors (Registration) (Amendment No. 4) Law, 5737 — 1976 46 Engineers and Architects (Amendment No. 3) Law, 5737 — 1976 ... 50 Estate Duty (Amendment No. 7) Law, 5737 — 1977 178

F Fallen Soldiers' Families (Pensions and Rehabilitation) (Amendment No. 12) Law, 5737— 1977 168

H Homes (Supervision) (Amendment) Law, 5737—1976 29

I Income Tax Ordinance (Amendment No. 25) Law, 5737 —1977 ... 246 Income Tax Ordinance (Amendment No. 28) Law, 5737 — 1977 ... 306 Invalids (Nazi Persecution) (Amendment No. 4) Law, 5737—1976 33 Invalids (War against the Nazis) (Amendment No. 8) Law, 5737 — 1977 171 Israel Film Encouragement (Amendment No. 2) Law, 5737— 1977 ... 193

342 Title

K Knesset Building and Precincts (Amendment) Law, 5737 —1977 ... 108 Knesset Committees (Labour and Social Affairs Committee) Law, 5737 —1977 292 Knesset Elections (Amendment No. 6) Law, 5737 — 1977 85

L Land (Amendment No. 5) Law, 5737 — 1977 294 Land Appreciation Tax (Transitional Provisions) (Amendment and Extension of Validity) Law, 5737 — 1977 304 Legal Assistance to Foreign States Law (Consolidated Version) 5737 — 1977 ... 102 Loan (Cost-of-Living Allowance) (Amendment) Law, 5737 — 1976 ... 27 Local Authorities (Business Tax) Ordinance (Amendment No. 7) Law, 5737— 1976 3 Local Authorities (Benefits to Head and Deputy Heads) Law, 5737 — 1977 92 Local Authorities Elections (Temporary Provisions) Law, 5737— 1977 109

M Military Justice (Amendment No. 9) Law, 5737 — 1976 53 ״ — Motor Vehicles Insurance Ordinance (Amendment No. 3) Law, 5737 1976 4

N National Defence Loan (Amendment No. 6) Law, 5737 —1976 ... 21 National Energy Authority Law, 5737— 1977 73 National Insurance (Amendment No. 25) Law, 5737 — 1977 101 National Insurance (Amendment No. 26) Law, 5737 — 1977 143 National Insurance (Amendment No. 27) Law, 5737 — 1977 144 National Insurance (Amendment No. 28) Law, 5737 — 1977 183 National Insurance (Amendment No. 29) Law, 5737 — 1977 188 National Insurance (Amendment No. 30) Law, 5737 — 1977 272

O Oil in Navigable Waters Ordinance (Amendment No. 3) Law, 5737 — 1977 156

343 Title

P Partnership Ordinance (Amendment) Law, 5737 — 1977 290 Penal Law Amendment (Interruption of Pregnancy) Law, 5737— 1977 82 Planning and Building (Temporary Provisions) Law, 5737 — 1976 ... 25 Political Parties (Financing) (Temporary Provisions) Law, 5737— 1977 96 Prevention of Dumping Law, 5737 — 1977 63 Psychologists Law, 5737 — 1977 195

S Savings Loan Law, 5737 — 1977 163 Scholarships (Registration) Law, 5737 — 1976 22 Settlement of Labour Disputes (Amendment No. 5) Law, 5737 — 1976 ' 5 Severance Pay (Amendment No. 6) Law, 5737 — 1976 ... 31 Severance Pay (Amendment No. 7) Law, 5737 — 1976 ... 32 Severance Pay (Amendment No. 9) Law, 5737 — 1977 ... 136 Severance Pay (Amendment No. 10) Law, 5737 — 1977 ... 189 Small Claims (Jurisdiction) (Amendment) Law, 5737— 1977 170 Standard Contracts (Amendment No. 2) Law, 5737— 1977 291 State Comptroller (Temporary Provision) Law, 5737 —1977 114 State of Israel Bonds (Fifth Development Investment Issue) Law, 5737— 1976 16 State Service (Benefits) (Amendment No. 16) Law, 5737 — 1977 ... 95 State Service (Benefits) (Amendment No. 17) Law, 5737 — 1977 ... 113 State Service (Benefits) (Amendment No. 18) Law, 5737 — 1977 ... 120 State Service (Discipline) (Amendment No. 5) Law, 5737 — 1977 ... 212

T Trade in Used Vehicles Law, 5737 — 1977 286

V Victims of Hostile Action (Pensions) (Amendment No. 3) Law, 5737—1977 190

W Wage Protection (Amendment No. 12) Law, 5737 — 1977 115

Y Youth (Trial, Punishment and Modes of Treatment) (Amendment) Law, 5737—1977 161

344 משיד המשפטים מםמך זה הינו העתק שנסרק בשלמותו ביום ובשעה המצוינים . בסריקה ממוחשבת מהימנה מהמסמך המצוי בתיק, בהתאם לנוהל הבדיקות במשרד המשפטים. על החתום « 9ן משרד המשפטים (התימה מוסדית). 00.־»* *01052 2014^ 22 ~~ ^'"" *