LAWS OF THE STATE OF

VOL. 42

5748-1987/88

From 3rd Cheshvan, 5747 - 26.10.87 to 16th Elul, 5748-29.8.1988

Authorized Translation from the Hebrew Prepared at the

ISSN 0334-3383

Distributors: Government Publications Service 25-27, David Eleazar Street, Hakirya, Tel-Aviv - P.O.B. 7103 TAMAR GAULAN

LAWS OF THE STATE OF ISRAEL

VOL. 42

5748-1987/88

From 3rd Cheshvan, 5747 - 26.10.87 to 16th Elul, 5748-29.8.1988

Authorized Translation from the Hebrew Prepared at the Ministry of Justice

ISSN 0334-3383

Distributors: Government Publications Service 25-27, David Eleazar Street, Hakirya, Tel-Aviv - P.O.B. 7103 CONTENTS Page Laws 3 Index of laws in the Order of the Date of Their Adoption 327 Alphabetical Index of Laws 333 (No.l) ELECTRICITY SUPPLY (SPECIAL PROVISIONS) LAW, 5748-J 987*

1. In this Law - Definitions "electricity supplier" means any of the following: (1) The Israel Electric Company Ltd; (2) Regional Electric Company Ltd; "the schedules" means the schedules of the Jerusalem Electricity Concession Ordinance1 as in force at the time of the commencement of this Law; "the area" means the area determined in the Order for Law and Administration (No.l), 5727-19672 "the " means the Minister of Energy and Infrastructure.

2. (a) The Minister may, by Order, with the approval of the Government and Electricity after consultation with the Economic Committee of the , order an electricity supply order supplier to supply electricity according to the provision of the Schedules, to the places specified in the Order; the reference to the Schedule shall not derogate from the validity of the expiry of the concession under it on the 31st December 1987. (b) Where the Minister has by Order directed the Israel Electricity Company Ltd, to supply electricity to places in an area, he may determine that notwithstanding the provisions of subsection (a), it shall supply electricity to the same places according to the provisions of the Electricity Concessions Ordinance3. (c) The validity of an Order under this section shall be for the period stipulated therein, provided that it does not exceed twelve years from the day that this Law comes into force.

3. The Minister may, by Order, with the approval of the Government and the Adjustments and Economics Committee of the Knesset, prescribe adjustments and amendments in Amendments the Schedule that will apply to the places stipulated in an Order under section in the Schedule 2(a).

4. (a) The concession bill appearing in the schedule of the Electricity Amendment of the Concessions Ordinance, shall be amended in accordance with the schedule of this Electricity Law, and it shall be regarded as already valid for all puiposes. Concessions Ordinance (b) Financial accounts of the Electricity Company Ltd shall be conducted in accordance with the provisions of the Concession Bill (Amendment) in the

Passed by the Knesset on the 3rd Cheshvan, 5747 (26th October, 1987) and published in Sefer Ha-Chukkim No. 1227 of 11 Cheshvan, 5747 (3rd November, 1987) p.2; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1849, 5747 p. 329. Chukkei Eretz Yisrael, vol 2 p. 635, P.G. Suppl. 1 p. 20. 5727, p. 2691. Chukkei Eretz Yisrael, vol 2 p. 684.

3 schedule of this Law; nothing in the aforesaid provisions of this section shall derogate from the provisions of the Income Tax Ordinance 4 and regulations thereunder.

Implementation 5. The Minister is charged with the implementation of this Law and he may, and with the approval of the Economics Committee of the Knesset, make regulations regulations relating to the matters arising from the implementation of the orders issued under this Law, as well as the matters specified in the schedule of this Law.

Validity of 6. An order under section 3 and regulations under section 5 shall overrule any regulations provision appearing in the Schedule.

Schedule (section 4) This Concession Amendment Bill was drawn up on the day between The Israeli Government, represented by the Minister for Energy and Infrastructure, in the name of the State of Israel (hereinafter ) the Government) on the. one side and between The Israel Electricity Company Ltd (hereinafter the Company, and this term shall also include its replacements and authorized representatives). on the other side Whereas the Company is the holder of the concession of the 5th March 1926, appearing in Part 1 of the Schedule of the Electricity Concession Ordinance, the same having been amended in the supplementary Concession Bill of 3rd Av, 5730 (5th August 1970); and whereas: the sides desire to introduce changes into the Concession, in order to allow the Company to conduct its activities according to economic principles; therefore this Amendment Bill attests to the following: (1) The Concession shall be amended as follows: (a) The amortisation fund which the Company created pursuant to the provisions of the Concession, shall be terminated as of the 2nd of Nissan, 5747 (1st April, 1987) and any provision in the Concession relating to it is invalid. (b) As against the amounts saved in the amortization fund of the Company until the date as stated in subsection (a) the share holders shall

4 Dinei Medinat Yisrael New Version 6, p. 120. L.S.I. N. V.

4 receive benefit shares, fully paid up, for the defrayal of all of the obligations of the Company in respect of the said fund. (c) In section 2 of the aforementioned schedule, the word "their cost" shall be replaced by the words "their adjusted cost". 2. The Amendment of the Concession Bill shall come into force on the 2nd Nissan 5747 (1st April, 1987).

in witness thereof the sides have put their seals;

Minister for Energy and Infrastructure The Israel Electricity Company Ltd

YITZCHAK SHAMIR MOSHE SHACHAL Prime Minister Minister for Energy and CHAIM HERZOG Infrastructure President of State (No. 2) 5748-1987״ ,(LAND LAW (AMENDMENT NO. 10

,("hereinafter referred to as "the principal Law) 5729-1969׳ ,Addition of 1• In the Land Law

Sections 59A me following sections shall be inserted after section 59: and 59B 6 59A (a) The owner of a dwelling may, without the consent of the other owners of dwellings in his building and subject to the provisions of subsection (b), install a boiler for the heating of water by the sun (hereinafter - a solar heater) at a reasonable place on the roof, and in a reasonable manner install all the appliances connected therewith and the pipes for the conveyance of the water to his dwelling, provided that all the following requirements are fulfilled: (1) he has received a permit for the installation under the Planning and Building Law 5725-19652, and has fulfilled the conditions of the permit; (2) on the date of the issue of the permit, the place on which the solar heater is to be installed has not been used by the owners of the dwellings for a reasonable period of time for any purpose whatsoever that had been agreed upon either by resolution of the owners of the dwellings or by their conduct and is not, on the said date, intended to be used for any purpose whatsoever under the rules of the condominium; (3) the installation of the appliances and pipes is carried out in a manner minimizing, as much as possible, any defacement of the building. (b) The owner of a dwelling in a condominium the roof of which is not sufficient for a number of solar heaters equal to the number of dwellings in the house-shall not install a solar heater as provided in subsection (a) until he has obtained the consent of all the other owners of dwellings; provided that if the owner of another dwelling objects on unreasonable grounds, or makes his consent dependent on unreasonable conditions, the Inspector may authorize the installation of the solar heater.

(c) A certificate signed by the engineers of the Local Planning and Building Commission shall be evidence of the roof of the house either being or not being sufficient for a number of solar heaters equal to the number of the dwellings in the condominium; in the certificate, two engineers shall state the number of solar heaters for which the roof of the house is sufficient.

Passed by the Knesset on the 19th Cheshvan, 5748 (1 Ith November 1987) and published in Sefer Ha-Chukkim No. 1228 of the 27th Cheshvan, 5748 (15th November 1987), p. 6; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1774 of 5746, p. 180. 1 Sefer Ha-Chukkim 5729, p. 259; L.S.I. Vol 23, p. 283; 5734, p. 12, L.S.I. Vol 38 p. 15. 2 Sefer Ha-Chukkim 5725, p. 307; L.S.I. Vol 19, p. 330.

6 59B (a) The owner of a dwelling may, at his expense, without the consent of Disconnection the other owners of dwellings, be disconnected from the central water or room from central heating heating system; provided that where the central system is for water and room system heating combined, he may only be disconnected from one of them. This provision shall not derogate from the provision of section 2 of the Model Rules in the Schedule to this Law. (b) The Minister of Energy and Infrastructure may make regulations, with the approval of the Constitution, Law and Justice Committee of the Knesset, defining disconnection for the purposes of this section, and prescribing the conditions necessary for disconnection and the conditions to be complied with. (c) Disconnection as provided in subsection (a) shall not derogate from the rights of the owner of the dwelling in the central system from which he has been disconnected and shall not release him from the obligation to bear the expenses required for its proper maintenance. (d) The Minister of Justice may make regulations, in consultation with the Minister of Energy and Infrastructure and with the approval of the Constitution, Law and Justice Committee of the Knesset, prescribing provisions as to the payment of expenses referred to in subsection (c), payable by the owner of a dwelling who has been disconnected from the central system and as to his share in the operating expenses of the central system, having regard to the rate of the increase of those expenses caused to the other residents as a result of the disconnection.

2. In section 72 of the principal Law, in subsection (a), the expression "section Amendment 58" shall be replaced by the expression "section 58, 59A and 59B". of section 72

3. In section 77B of the principal Law, the nubers "59A, 59B" shall be inserted Amendment of section 77B. after the number "58".

4. Section 59B of the Land Law, 5729-1959, as enacted by this Law, shall come Commencement into force upon the expiry of three months from the date of publication of this Law.

YlTZCHAK SHAMIR MOSHE NlSSIM Prime Minister Minister of Finance CHAIM HERZOG President of State

7 (No. 3) DISCHARGED SOLDIERS (RETURN TO WORK) (AMENDMENT NO.8) 5748-1987״,LAW

section ,5709-1949׳ ,Amendment 1. In the Discharged Soldiers (Return to Employment) Law

of section 41 4j snajj ^e remarked as 4!(a) the following section shall be added thereafter: " (b) The owner of a business shall not dimiss an employee during the period of his being partially or totally in service, save with a permit of the the Employment Committee; the Employment Committee which is a general one, may issue a general permit for the purposes of this section.

(c) The days of advance notice of dismissal, shall not include the days during which the worker is in partial service. (d) In proceedings before the Employment Committee under section 21, the owner of the enterprise is obliged to submit proof that the severance under subsection (a) was not connected to service in the partial capacity.

YiTZCHAK SHAMIR YITZCHAK RABIN Prime Minister Minister of Defence CHAIM HERZOG President of State

Passed by the Knesset on the 25th Cheshvan, 5748 (17th November, 1987) and published in Sefer Ha-Chukkim No. 1229 of 5th Kislev, 5748 (26th November. 1987), p. 10; the Bill and Explanatory Note were published in Hatza'ot Chok No 1788 of 5746, p. 251. ' Sefer Ha-Chukkim of 5709, p. 13; L.S.I. Vol 3 p. 10. Sefer Ha-Chukkim of 5737, p. 86; L.S.I. Vol 21, p. 97.

8 (No. 4) NATIONALITY (AMENDMENT No. 5) LAW, 5748-1987*

the following paragraph shall Amendment ,5712-1952׳ ,In section 9 of the Nationality Law .1 be added after paragraph 23: of section 9. 4. to a resident of Israel who is in Israel and regarding whom the Minister is satisfied that he identifies with the State of Israel and its goals and that he or a member of his family have'done active service in the Israel Defense Force or have done a substantial act in furtherance of the security, economy or some other important interest of the State or that the State has a special interest in granting him nationality as aforesaid; in this paragraph, "member of family" means a spouse, a parent, a son, a daughter, or sibling.

YITZHAK SHAMIR YITZHAK SHAMIR Prime Minister Minister of the Interior CHAIM HERZOG President of the State

Passed by the Knesset on 9 Kislev 5748 (30 November 1987) and published in Sefer Ha-Chukkim No. 1230 of 18 Kislev 5748 (8 December 1987), p. 12; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1828 of 5747, p. 210. 1 Sefer Ha-Chukkim oi 51 \2,v. 146; L.S.I, vol VI, p. 50; Se/erHa-CAutt/mof5718,p.84;L.S.I.vol. XII. p. 99; Sefer Ha-Chukkim of 5728, p. 212; L.S.I, vol. XXII, p. 241; Sefer Ha-Chukkim of 5731 p. 118; L.S.I. vol. XXV, p 117; Sefer Ha-Chukkim of 5740, p. 222; L.S.I, vol. XXXIV, p. 254.

9 (No. 5) ESTATE DUTY (REPEAL) (AMENDMENT) LAW, 5748-1987* hereinafter referred) 5741-1981׳ ,Amendment 1. In section 1 of the Estate Duty (Repeal) Law of section 1 to as "the principal Law"), the words (hereinafter referred to as "the Estate Duty Law)" shall be inserted after the number "1949". Amendment 2. The following shall be added at the end of section 4 of the principal Law: of section 4 "from 11 Tevet 5748 (1 January 1988), it shall also apply to the estate of a person who died before the said day, and without prejudice to the generality of the aforesaid, the following provisions shall apply: (1) An underpayment or overpayment under the Estate Duty Law shall not be collected or refunded; (2) a credit or debit entry under the Estate Duty Law shall be void; (3) a return filed under the Estate Duty Law under which a final assessment, no longer subject to contestation or appeal, was not made before 11 Tevet 5748 (1 January 1988) shall be deemed not to have been filed; (4) a cautionary note entered in respect of an estate duty debt in a book kept at a land registry office shall be deleted; (5) a contestation or appeal under the Estate Duty Law shall no longer be heard. Amendment 3. In section 32 of the Income Tax (Adjustments by Reason of Inflation) Law, of Inflationary 2 Adjustments 5745-1985 , the words "and 1986" shall be replaced by "until 1987". Law

YITZCHAK SHAMIR MOSHE NlSSIM Prime Minister Minister of Finance CHAIM HERZOG President of State

Passed by the Knesset on 30 Kislev 5748 (21 December 1987) and published in Sefer Ha-Chukkim No. 1231 of 5748, p. 14; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1860 of 5748. p. 80. 1 Sefer Ha-Chukkim of 5741, p. 160; L.S.I. Vol. XXXV, p. 178. 2 Sefer Ha-Chukkim 5745, p. 172; L.S.I. Vol 39, p. 184, 5747, p,98; L.S.I. Vol 41 p. 108.

10 (No. 6) EMERGENCY REGULATIONS (JUDEA AND SAMARIA AND GAZA ZONE - CRIMINAL JURISDICTION AND LEGAL ASSISTANCE) (AMENDMENT AND EXTENSION OF VALIDITY) LAW, 5748-1987*

1. The validity of the Emergency Regulations (Judea and Samaria and Gaza Extension hereinafter of validity) 5727-1967׳ ,(Region - Criminal Jurisdiction and Legal Assistance referred to as "the Regulations"), as amended by this Law, is hereby extended until 3 Tevet 5750 (31 December )1989).

2. In regulation 2(a) of the Regulations - Amendment of regulation (1) the words "or is registered in the Population Register under the 2. Population Registry Law, 5725-1965 2 shall be deleted; (2) The following shall be added at the end: "In this regulation," "any person who is in Israel" includes - (2) a body corporate registered in Israel; (3) a body corporate operating in Israel or controlled by a program registered in Israel as specified in paragraph (1) or (2).

3. Regulation 4A of the Regulations shall be replaced by the following Replacement of regulation regulation. 4A. 4A. (a) The police may supply information from the Crime Register to the Supply of information undermentioned authorities and office-holders in a region at their request and for from the Crime the purpose of the discharge of their functions: Register. (1) a commander or a person empowered in that behalf by a commander in consultation with the legal advisor in the region; (2) the head of the Civil Administration or a person empowered by him in that behalf in consultation with the legal advisor in the region; (3) a military court; (4) the legal advisor to the region and his assistants; (5) a military prosecutor; (6) the defense counsel of an accused person where the information relates to an accused person and is to be used for the purposes of the proceeding against him.

Passed by the Knesset on 8th Tevet 5748 (29th December 1987) and published in SeferHa-Chukkim No. 1232 of 10 Tevet 5748 (31 December 1987), p. 16; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1858 of 5748, p. 48. Sefer Ha-Chukkim of 5728, p. 20; L.S.I. Vol. XXII, p. 20; Sefer Ha-Chukkim of 5735, p. 229; L.S.I. Vol XXIX, p. 306; Sefer Ha-Chukkim of 5741, p. 327; L.S.I. Vol. XXV, p. 405; Sefer Ha-Chukkim of 5742, p. 18; L.S.I. Vol XXXVI, p. 16; Sefer Ha-Chukkim of 5744, p. 36; L.S.I. Vol. XXXVIII p. [43]; Sefer Ha-Chukkim of 5746, p. 69; L.S.I. Vol. XL, p. 68. Sefer Ha-Chukkim of 5725, p. 270; L.S.I. Vol. XIX, p. 288.

11 (b) The provisions of the Crime Register and Rehabilitation of an Offender Law, 5741-19813 (hereinafter referred to as "the Crime Register Law"), applying to information supplied under section 5(a) of the Crime Register Law shall apply mutatis mutandis to information supplied under subregulation (a). (c) Where a person, on his own behalf, seeks information from the Register for submission to an authority of the in a region, the police shall, at the request of that person, supply the information to that authority. The provisions of the Crime Register Law applying to information supplied under section 5 of that Law shall apply mutatis mutandis to information supplied to the authority.

Addition of 4. The following regulation shall be inserted after regulation 7A: section 7B Supply of 7B. (a) Notwithstanding anything provided in the tax law concerning the duty information to tax authorities of the tax authorities to preserve secrecy, a tax authority in Israel may supply information to a tax authority in a region. (b) The provisions of the Tax Amedment (Exchange of Information between Tax Authorities) Law, 5727-19674 (hereinafter referred to as "the Exchange of Information between Tax Authorities Law), shall apply mutatis mutandis to the supply of information, and the treatment of information supplied, under subregulation (a). (c) In this regulation, "tax laws", "tax authority" and "information" have the same respective meanings as in the Exchange of Information between Tax Authorities Law".

Amendment 5. In regulation IIA of the Emergency Regulations (Protection of Educational of Emregency 5 Regulations Institutions), 5734-1974 , the following sub-regulations shall be inserted after sub-regulation (d): (c) For the purposes of this regulation, a duty of protection under an order of a commander in the Israel Defense Forces in the Judea and Samaria region or the Gaza region shall be treated as a duty of protection under those Regulations.

3 SeferHa-Chukkim of 5741, p. 322; L.S.I. Vol. XXXV, p. 398; SeferHa-Chukkim of 5743, p. 144; L.S.I. Vol. XXXVII, p. 168. 4 SeferHa-Chukkim of 5727, p. 136; L.S.I. Vol. XXI, p. 135; SeferHa-Chukkim of 5741, p. 158; L.S.I. Vol. XXXV, P. 175. 5 Kovetz Ha-Takkanot of 5734, p. 1982; Sefer Ha-Chukkim of 5735, pp. 18 and 136; L.S.I. Vol XXIX, pp. 25 and 259; Sefer Ha-Chukkim of 5736, p. 274; L.S.I. Vol XXX, p. 268; Sefer Ha-Chukkimo(5138,p. 140; L.S.I. Vol. XXXIII, p. 173; Sefer Ha-Chukkim of 51 W,p. 133;L.S.I. Vol. XXXIV, p. 173; Sefer Ha-Chukkim of 5741, p. 334; L.S.I. Vol. XXXV, p. 412; Sefer Ha-Chukkimof5142,p. 178; L.S.I. Vol. XXXVI, p. 185; 5e/erHa-07uJbt/mof5744,pp.2and 146; L.S.I. Vol. XXXVIII, pp. [3) and [197]; SeferHa-Chukkim of 5745, p. 170; L.S.I. Vol. XXXIX, p. 183; Sefer Ha-Chukkim of 5746, p. 246; L.S.I. Vol XI., 264; Sefer Ha-Chukkim of 5747, p. 140; L.S.I. Vol. XLI, p. 145.

12 This Law shall come into force on 11 Tevet 5748 (1 January 1988). Commencement

YITZCHAK SHAMIR AVRAHAM SHAPIRA Prime Minister Minister of Justice CHAIM HERZOG President of the State (No. 7) MUNICIPALITIES ORDINANCE (AMENDMENT) (NO. 32) LAW, 5748-1987*

Addition of 1. The following section shall be inserted after section 245 of the Municipalities section 235A. Ordinance1:

Minicipal 249A. Where the municipality has acted in exercise of its powers under section bodies corporate 249 (30) and a company, amuta (non-profit society), cooperative society or other society has been established whose objects and functions are within the framework of the objects and functions of the municipality, and the municipality holds at least half of the capital or half of the voting power of the said body corporate (hereinafter referred to as a "municipal body corporate"), the following provisions shall apply: (1) the municipal council shall designate its representatives on the governing body of the municipal body corporate; their representatives may also be members of the council or employees of the municipality; (2) the representatives of the municipality shall ensure that the activities of the municipal body corporate are within the framework of the powers and functions of the municipality; their duty of allegiance to the Minicipality shall always prevail over their duty towards the body corporate. (3) the representatives of the municipality who are members of the council shall be so selected that the ratio of forces of the factions of the council is preserved as far as possible; (4) a representative of a municipality who is a member of the council shall be entitled to a remuneration for his participation in the meetings; the Minister of the Interior may, by regulations, prescribe rules regarding the amount of the remuneration; (5) the provisions of section 122A(a) shall not apply to a municipal body corporate by reason only that a member of the council or an employee of the municipality is a representative of the municipality or its governing body.

YITZHAK SHAMIR YITZHAK SHAMIR Prime Minister Prime Minister and CHAIM HERZOG Minister of the Interior President of State

* Passed by the Knesset on 8Tevet 5748 (29 December 1987) and published in SeferHa-Chukkim No. 1282 of 10 Tevet 5748 (31 December 1987), p. 18; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1832 of 5747, p. 252. 1 Dinei Medinat Yisrael (Nasach Hadash) No. 8, p. 197; NV Vol. I, p. 247; SeferHa-Chukkim of 5744, p. 49; L.S.I, p. 49; L.S.I. Vol. XXXVIII, p. [61 ]; SeferHa-Chukkim of 5747, p. 87; L.S.I. Vol. XLI,p.93.

14 (No. 8)

PLANNING AND BUILDING (AMENDMENT NO. 25) LAW, 5745-1987*

Amedment 5725-1965׳ ,In section 238A of the Planning and Building Law .1 of section 238A (I) the following subsection shall be inserted after subsection (b): (bl) (1) The chairman of a District Committee shall have, mutatis mutandis, the powers vested in the chaiman of a Local Commission, and a district planner shall have, mutatis mutandis, the power vested in the engineer of a Local Commission, for the purpose of making administrative demolition orders within the district and within a district planning area under section 12. (2) The chairman of a District Commission shall not make an administrative demolition order, and shall not direct the chairman of a Local Commission to make a demolition order under paragraph (3) save after consultation with the representative of the Minister of Justice on the District Commission; (3) The Chairman of a District Commission shall not exercise his power under paragraph (1) in respect of building in an area other than a district planning area as aforesaid until he has given notice to the Minister of the Interior and has requested the Local Commission, in writing, to make a demolition order in respect of building as aforesaid and the chairman of the Local Commission has not done so within seven days from the date or service of the notice to the Commission or, if an order has been made, the order has not been carried out within fourteen days from the date on which it was made unless its carrying out was prevented by a court decision; these periods shall not be included in the count of thirty days referred to in subsection (i); (4) The chairman of a Local Commission who has received a direction under paragraph (3) is exempt from the duty of consulting with the legal advisor of the Authority under subsection (b), and in a local planning area as referred to in section 19 he is exempt from consulting with the head of the local authority in the area of which the non-conforming building is situated; but it is his duty to notify him, before making the administrative demolition order, of the direction received by him as aforesaid.

" Passed by the Knesset on 9 Tevet 5748 (30 December 1987) ad published in Sefer Ha-Chukkim No. 1233 of 13 Tevet 5748 (8 January 1988), p. 20; the Bill and an Explanatory Note were published in Hataza'ot Chok No. 1817 of 5747, p. 160. 1 Sefer Ha-Chukkim of 5725; p. 307 -- L.S.I. Vol. XIX, p. 330; Sefer Ha-Chukkim of 5746, p. 150; L.S.I., vol XL, p. 162.

15 (2) In subsection (i), the words "An administrative demolition order shall not be carried out" shall be replaced by the words "subject to the provisions of section (bl)(3), an administrative demolition order shall not be carried out". (3) In subsection (j), after the words "to the Local Commission", there shall be inserted the words "The chairman of the District Commission shall notify the District Commission of the making of an administrative demolition order"; (4) In subsection (k), the words "and in the area of the district, all the said powers shall, mutatis mutandis, be vested in the District Commission", shall appeared the end of the subsection. (5) In subsection (m), the words "the Local Commission" shall be replaced by the words "the Local Commission or the District Commission as the case may be".

YITZHAK SHAMIR YITZHAK SHAMIR Prime Minister Prime Minister and CHAIM HERZOG Minister of the Interior President of State (No. 9) GALILEE LAW, 5748-1987*

1. In this Law - Definitions "The Galilee" means an area to be defined by the Ministers in an . order; "the Ministers" means the Minister of Economics and Planning and the Minister of Industry and Commerce; "the Council" means the Galilee Council established under section 4.

2. (a) The Government shall take care of the development and settlement of the Priority for Galilee and, within the framework of the development budget at its disposal, shall the Galilee allot resources for its development. (b) The Galilee shall be given priority in the activities of the government ministies, including the development of settlement, education, health, tourism, industry, transport, communications, absorption and immigration.

3. (a) There is hereby established the Galilee Council (hereinafter referred to The Council as "the Council"). and its Members (b) The Council shall consist of twenty-six members, viz.~ fourteen representatives of the government; one representative of the Nature Reserves Authority; two representatives of the World Zionist Organization; a representative of the General Federation of Labor in Eretz Yisrael; a representative of the Manufacturers' Association; five representatives of the public.

4. (a) The representatives of the government shall be appointed respectively by Appointment the Industry and Commerce Minister, the Education and , the of members of Council. Agriculture Minister, the , the , the Immigrant Absorption Minister, the Construction and , Labour and Welfare Minister, the , the , the Transport Minister, the Communications Minister, the Economics and Planning Minister and the Minister of Tourism. (b) The Executive of the World Zionist Organization shall appoint its representatives. (c) The Secretary-General of the General Federation of Labor in Eretz Yisrael shall appoint its representative.

* Passed by the Knesset on 14 Tevet 5748 (4 January 1988) and published in Sefer Ha-Chukkim No. 1234 of 22 Tevet 5748 (12 January 1988), p. 22; the B ill and an Explanatory Note were published in Hatza'ot Chok No. 1842 of 5747, p. 219.

17 (d) The President of the Manufacturers Association shall appoint the Association's representative. (e) The Government shall appoint the public representatives. (f) The period of tenure of the Council is four years, after which a new Council shall be appointed.

Meetings of 5. (a) A majority of the members of the Council shall be a quorum at its the Council meetings. (b) Where a quorum is not present at a Council meeting, the meeting shall be adjourned for up to fourteen days. The adjourned meeting shall be legal with any number of members attending. (c) Notice of the holding of a Council meeting shall be sent to the members at least seven days before the date of each meeting.

Decisions 6. The decisions of the Council shall be passed by a majority of members voting. 7. The Council shall appoint the Director of the Council, who shall be elected by a simple majority of the Council members.

Procedure 8. The Council shall prescribe its procedure for its deliberations and work.

Functions 9. (a) The Council's function shall be to advise the Government in all matters and powers regarding the development of the Galilee, the promotion, development and consolidation of its industry (including the establishment of industrial undertakings and recommendations for the grant of incentives, exemptions and rebates in addition to those prescribed by any law), the development of agriculture and tourism, the development and advancement of educational and cultural ventures, the initiation of the establishment of new settlements and any further purpose which may be designated by regulations. (b) The Finance Minister shall fix the Council's budget with the approval of the Knesset Finance Comittee.

Exclusive pow. s 10. The following powers shall be reserved to the Council: of Council (1) the power to appoint its manager and other officers; (2) the power to appoint committees.

18 11. The existence and status of the Council shall not be affected by a vacancy of Saving of the place, or a defect in the appointment of a member. status

12. The Ministers are charged with the implementation of this Law and may Implementation make regulations as to any matter relating to its implementation. and regulations

YITZHAK SHAMIR GAD YAAKOBI Prime Minister Econimics and Planning Minister CHAIM HERZOG President of State

ARIEL SHARON Industry and Commerce Minister

19 (No. 10) CURRENCY CONTROL (AMENDMENT No. 2) LAW, 5748-1987*

hereinafter referred to) 5738-1978׳ ,Amendment 1. In section 1 of the Currency Control Law of section 1 as "the principal Law"), in the definition of "sovereign currency", the words "foreign currency specified in the Schedule" shall be replaced by the words "any currency other than Israeli currency which is legal tender in any state".

Amendment 2. In section 9(a) of the principal Law, the words "the Minister of Finance or the of section 9 Controller may" shall be replaced by "the Minister of Finance, the Controller or a person empowered in that behalf by either of them".

Amedment 3. In section 15 of the principal Law, the words "or a person empowered by him of section 15 in that behalf shall be inserted after the words "the Controller".

Amedment 4. In section 17 of the principal Law - of section 17 (1) in subsection (a), the closing passage, beginning with the words "is liable to" shall be replaced by the words "is liable to imprisonment for a term of three years or a fine of three times the amount fixed in section 61(a)(4) of the Penal Law, 5737-19772 (hereinafter referred to as "the Penal Law") or, if the offense is committed under aggravated circumstances, to imprisonment for a term of five years or a fine of five times the amount fixed in section 61(a)(4) of the Penal Law; however, the court may impose on the accused a fine of three times the said amount or, if the offense is committed under aggravated circumstances, five times the value of the property or transaction in respect of which the offense is committed, whichever is more; (2) in subsection (b), the closing paragraph, beginning with the words "is liable to", shall be replaced by the words "is liable to imprisonment for a term of one year or a fine of three times the amount fixed in section 61(a)(2) of the Penal Law".

YITZCHAK SHAMIR MOSHE NlSSIM Prime Minister Minister for Finance CHAIM HERZOG President of State

Passed by the Knesset on 14 Tevet 5748 (4 January 1988) and published in Sefer Ha-Chukkim No. 1234 of 22 Tevet 5748 (12 January 1988), p. 28; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1842 of 5747, p. 227. 1 Sefer Ha-Chukkim of 5738, pp. 128 and 204; L.S.I, vol. 32, pp. 134 and 265. 2 Sefer Ha-Chukkim of 5737, p. 226; L.S.I. Special Volume: Penal Law, 5737-1977.

20 (No. 11) BANKING (LICENSING) (AMENDMENT NO. 5) LAW, 5748-1988*

1. In section 47 of the Banking (Licensing) Law, 5741-1981', the expression "10 Amendment Tevet 5748 (31 December 1987) shall be replaced by the expression "29 Adar II of section 4' 5749(31 March 1989)".

YITZCHAK SHAMIR Prime Minister Minister for Finance CHAIM HERZOG President of State

1

* Passed by the Knesset on 13 Shevat 5748(1 February 1988) and published in SeferHa-ChukkimNo. 1215 of 17 Tevet 5748 (5 February 1988), p. 26; the Bill and an Explanatory Note were published in Hatza'ot Hok No. 1864 of 5748, p. 182. 1 5eferHa-Chutt/mof5741,p.332;L.S.I.vol.XXXV,p.277; Sefer Ha-Chukkim of 5747, pp. 11, 20, 170, 188;L.S.I.vol.XLI, 16,21, 175, 176.

21 (No. 12) BENEFITS FOR SOLDIERS AND THEIR FAMILIES (INJURY NOT IN THE COURSE OF DUTY) LAW, 5748-1988*

Definitions !. In this Law - "Soldier" - a soldier in regular service as defined in the Defense Service Law with the exception of a soldier serving in ,5746-1986׳ ,[Consolidated Version] permanent service.

Status of Injury 2. (a) The Invalids (Pensions and Rehabilitation) Law 5719-19592 not in the Course of [Consolidated Version] (hereinafter - the Invalids Law), shall also apply to a soldier Duty who sustains an injury during his term of service, even if not in consequence of that service, provided that the following three conditions have been fulfilled: (1) the injury occurred at a time when the soldier was not absent from service without official leave; (2) where the injury occurred at a time when the soldier was not discharging duties in the service, it occurred within a period of the first fourteen days during which he did not discharge duties in the service; (3) as a result of the injury a medical committee appointed under the Invalids Law ascribed him a level of invalidity is not less than 20%. (b) The Fallen Soldiers' Families (Pensions and Rehabilitation) Law, 5710-19503, shall apply to the members of the family of a soldier who died as a result of an injury under the circumstances specified in subsections (a)(1) and (2).

Applicability 3. This Law shall apply to an injury that occurred after its publication.

YITZCHAK SHAMIR YITZCHAK RABIN Prime Minister Minister of Defense CHAIM HERZOG President of State

Passed by the Knesset on the 8th Shevat, 5748 (27th January, 1988) and published in Sefer Ha-Chukkum No. 1235 of the 17th Shevat 5748, (5th February, 1988) p. 12; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1826,5747, p. 215. 1 Sefer Ha-Chukkim 5746, p. 107; L.S.I. Vol 40, p. 103. 2 Se/eri/a-CnuJtfam5719,p.276;L.S.I. Vol. 14, p. 315. 3 Sefer Ha-Chukkim 5710, p. 162; L.S.I. Vol 4, p. 115.

22 (No. 13) 5748-1988״ ,INCOME TAX ORDINANCE AMENDMENT (NO. 76) LAW

1. In section 9 of the Income Tax Ordinance1, paragraph (1) shall be replaced by Amendment of section 9 the following paragraph: (1) Payments, services and benefits made or provided out of the Treasury to the President, a former President or a survivor of either in connection with the discharge of the presidential functions, other than a salary or pension;

2. This Law shall apply after the tax year 1988. Application

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister of Finance CHAIM HERZOG President of State

' Passed by the Knesset on the 22 Shevat 5748 (10 February 1988) and published in Sefer Ha-Chukkim No. 1236 Adar 5748 (19 February 1988), p. 28; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1863 of 5748, p. 106. 1 Dinei Medinat Yisrael (Nusach Hadash) No. 6, p. 120 -- NV vol. I, p. 145; Sefer Ha-Chukkim of 5747, p. 158 -- L.S.I. vol. XLI, p. 165.

23 (No. 14) BASIC LAW: THE STATE COMPTROLLER* 1. The State Comptroller is charged with the inspection of the State. Nature of Function 2. (a) The State Comptroller shall conduct an audit of the economy, assets, Inspection of the State monies, obligations and administration of the State, the Government offices, of every enterprise, institution or body corporate of the State, of the municipal authorities and of other bodies or institutions that are statutorily subject to the audit of the State Comptroller. (b) The State Comptroller shall examine the legality of actions, ethics, proper administration, efficiency and economy of the audited bodies, as well as any other matter he considers necessary. 3. A body being audited by the State Comptroller shall, without delay, supply the Obligation of supplying Comptroller upon demand, information, documents, explanations and any other information material deemed necessary by the Comptroller for audit purposes. 4. The State Comptroller will clarify public complaints against bodies and Public complaints persons as specified by law or by force thereof; in this capacity the State Comptroller shall serve as the "Public Complaints Commissioner". 5. The State Comptroller shall fulfill additional functions as prescribed by Additional functions Law. 6. (a) The State Comptroller shall be elected by the Knesset in a secret ballot; Election and term of office the ballot proceedings shall be prescribed by Law; (b) The period of office of the State Comptroller shall be for five years. 7. The State Comptroller shall be responsible exclusively to the Knesset and^ Responsibility to the Knesset shall not be dependent on the Government. 8. Every Israeli Citizen who is an Israeli resident is eligible to be a candidate for Eligibility the office of State Comptroller; additional conditions of eligibility may be legally prescribed; a person serving as State Comptroller for two successive periods shall not be a candidate for the period immediately afterwards.

Declaration 9. The State Comptroller elected shall, in the presence of the Knesset, declare of allegiance and sign upon the following declaration of allegiance. "I pledge my allegiance to the State of Israel and to its laws and to faithfully fulfill my function as the State Comptroller."

* Passed by the Knesset on the 27th Shevat, 5748 (15th February, 1988) and published in Sefer Ha-Chukkim No. 1237 of the 6th Adar 5748 (24th February, 1988) p. 30; the Bill and an Explanatory note were published in Hatza'ot Chok 1707, 5745. p. 53.

24 10. The budget for the State Comptroller shall be determined in accordance with Budaet the proposal of the State Comptroller given to the Knesset Finance Committee, and shall be published together with the State Budget.

11. The salary of the State Comptroller and other payments to be made to him Salary and during his period of service or thereafter, or to his next of kin after his death, shall Benefits be determined by Law or by a decision made by the Knesset or by one of the committees authorized by the Knesset in that matter.

12. (a) The State Comptroller shall maintain a connection with the Knesset, as Connection with the prescribed by Law. Knesset and (b) The State Comptroller shall submit to the Knesset reports and opinions submission of reports relating to its functions and shall publish them, according to the manner and subject to the conditions prescribed by Law.

13. The State Comptroller shall not be removed from office except in accordance Removal from office with a Knesset decision adopted by two thirds of the voters.

14. Should the State Comptroller be unable to carry out his functions, an acting Acting Comptroller State Comptroller shall be appointed for a period to be prescribed by Law.

YITZCHAK SHAMIR Prime Minister CHAIM HERZOG President of State

25 (No. 15) STATE COMPTROLLER (TRANSITIONAL PROVISIONS) LAW, 5748-1988*

Continuity 1. The State Comptroller serving at the effective date of the Basic Law: The of service State Comptroller', shall be deemed as having served in accordance with the Basic Law from the beginning of his service.

Amendment 2. In the State Comptroller [Consolidated Version] Law, 5718-19582 - of the Stetae Comptroller Law (1) Sections 1-3 shall be replaced by the following sections:

Election of 1. (a) The State Comptroller (hereinafter the Comptroller) shall

the Comptroller be eiected by me Knesset in a secret ballot at a Knesset session scheduled for that purpose alone. (b) The candidate receiving the votes of the majority of the Knesset members shall be elected; in the absence of a majority for any candidate, a second vote shall be conducted; in the absence of a majority for any candidate in the second vote, another vote shall be conducted; in the third vote, as well as in any additional vote, the candidate who received the least amount of votes in the previous vote, shall not be a candidate; the candidate chosen by the majority of those participating in the vote, in the third vote, or in any of the additional votes shall be elected; if two candidates receive an equal number of votes, another vote shall be conducted. Election date 2. (a) The election of the State Comptroller shall take place no earlier than ninety days and no later than thirty days prior to the termination of the term of office of the Comptroller serving; should the position of the Comptroller become vacant prior to the termination of his term of office, an election shall be conducted within forty five days of the date upon which the position became vacant.

(b) The Knesset , in consultation with his deputies, shall determine the election day and give written notice thereof to all the members of the Knesset twenty days prior to the election day.

(c) Where the election day falls on a day not scheduled for a Knesset session, the Speaker of the Knesset shall convene the Knesset for the purposes of the election.

* Passed by the Knesset on the 27th Shevat, 5748 (15th February, 1988) and published in Sefer Ha-Chukkim No. 1237 of the 6th Adar 5748, (9th December, 1987) p. 12; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1707, 5745, p. 53. 1 Sefer Ha-Chukkim 5748, p. 30; L.S.I. Vol 42, p. 24. 2 SeferHukkim 5718, p. 92; L.S.I. Vol. 12, p. 107.

26 Proposal of 3. (a) Having determined the election day, a minimum of ten candidates Knesset members may propose a candidate; the proposal shall be in writing and shall be submitted to the Knesset Speaker no later than ten days prior to the election day; the proposal snail be appended with the candidate's consent, either in writing or in a telegram; no Knesset member may participate in the proposal of more than one candidate.

(b) The Knesset Speaker shall give all the Knesset members written notification, no later than seven days prior to the election, of each of the candidates proposed and of the names of the Knesset members proposing him, and he shall declare the candidates at the opening of the election session.

(2) Sections 4, 4A and 5 are repealed. (3) Section 8 shall be replaced by the following section

8. The Comptroller's term of office shall expire - Termination of term of office (1) Upon expiration of his term; (2) Upon his resignation or death; (3) Upon his removal from office.

8A. (a) The Knesset may not remove the Comptroller from office, unless a Removal of Comptroller from written request has been submitted to the Constitution, Law and Justice Committee office of the Knesset by at least twenty Knesset members and according to a proposal submitted by the same committee. (b) The Constitution, Law and Justice Committee of the Knesset shall not propose the removal of the Comptroller from office unless he has first been given the opportunity of stating his case. (c) the deliberations of the Knesset according to this section shall be conducted at a meeting scheduled exclusively for that purpose or in successive meetings scheduled as stated; the deliberations shall begin no later than twenty days after the decision of the Constitution, Law and Justice Committee of the Knesset; the Speaker of the Knesset shall give every Knesset member ten days advance written notice informing them of the date of the commencing of the deliberations; where the commencement date is not during one of the Knesset sessions, the Knesset Speaker shall convene the Knesset for the conducting of the debate. (4) In section 11 subsection (e) is repealed; (5) Section 29 shall be replaced by the following section:

29. Should the Comptroller be temporarily incapable of carrying out his Acting functions, the Committee shall appoint an acting Comptroller for a period not Comptroller

27 exceeding three months; the Committee may extend the appointment for additional periods, provided that his total period of service as acting Comptroller shall not exceed six consecutive months; should the Comptroller be unable to carry out his functions for a period of six consecutive months, he shall be considered to have resigned; (6) Section 31 is repealed.

Amendment 3. In section 5 of the Basic Law: The State Economy3, the words "Details shall of the Basic be prescribed by Law" - shall be deleted. Law: the State Economy

Commencement 4. This Law shall come into force on the commencement day of The Basic Law: The State Comptroller.

YITZCHAK SHAMIR Prime Minister CHAIM HERZOG President of State

3 SeferHukkim 5735, p. 206; L.S.I. Vol 29, p. 273.

28 (No. 16) COOPERATIVE SOCIETIES ORDINANCE (AMENDMENT) (NO. 4) LAW, 5748-1988*

1. The following section shall be inserted after section 6 of the Cooperative Addition of Societies Ordinance1: section 6A

6A. (a) Where a person is a member of a registered society classified by the Membership Registrar as a moshav ovdim (smallholders' settlement) (each hereinafter referred to of spouse in cooperative as a shitufi (cooperative settlement), the spouse of that person shall be a settlement member of that society if the following requirements are met: (1) the spouse has submitted to the society, on a form prescribed by regulations, a notice of her or his wish to become a member of the society; (2) the spouse is qualified by the rules of the society to be a member thereof; (3) the spouses reside permanently in the cooperative settlement; (4) the spouses lawfully hold an agricultural farm in the cooperative settlement as owners, tenants or subtenants or as authorizers of the society or of a settlement situation within the meaning of the Candidates for Agricultural Settlement Law, 5713-19532. (b) A person who meets the requirements set out in subsection (a) shall, notwithstanding anything provided in the rules of the society, be a member of the society from the time of the submission of the notice, paragraph (a)(1), and the rights and duties of a member of the society under this Ordinance and the rules of the society shall apply to her or him. (c) The provisions of this section shall not derogate from the provisions of the rules of the society as to the termination of membership therein or the withdrawal or expulsion of a member therefrom.

YITZCHAK SHAMIR MOSHE KATZAV Prime Minister Minister of Labor CHAIM HERZOG and Social Affairs President of State

Passed by the Knesset on 28 Shevat 5748 (16 February 1988) and published in SeferHa-Chukkim No. 1238 of 7 Adar 5748 (25 February 1988), p. 34; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1831 of 5747, p. 250. Laws of Palestine vol. I, p. 360 (English Edition); SeferHa-Chukkim of 5711, p. 225; L.S.I., vol. V, p. 147; SeferHa-Chukkim of 5722, p. 107; L.S.I, vol, XVI, p. 56; SeferHa-Chukkim of 5741, p. 243; L.S.I., vol. XXXV, p. 293. Sefer Ha-Chukkum of 5713, p. 126; L.S.I, vol VII, p. 103.

29 (No. 17) GENERAL RATE (RESTRICTION ON INCREASE IN 1988 FINANCIAL YEAR) LAW, 5748-1988*

Increase of 1. (a) A local authority shall not, during the financial year 1988, in respect of general rate any property collect a general rate exceeding the amount of the rate which was legally due in respect of that property in the financial year 1987.

Commencement 2. (a) This Law shall come into force on the date of the adoption by the and transitional Knesset (hereinafter referred to as "the commencement date"). provisions (b) Where before the commencement date a local authority collected the whole or part of a rate in excess of what is permitted to it by subsection 1, the relevant provisions of the Local Authority (Interest and Linkage Differential on Compulsory Payments) Law, 5740-19801 shall apply to the excess payment. (c) Where before the commencement date a local authority collected the whole or part of a rate with a reduction, or with conditions of payment otherwise than as permitted by section 1, the Minister shall prescribe rules for the calculation of an amount to be regarded as an excess payment and for the determination of the date of its refund, and the provisions of the Law referred to in subsection (b) shall apply accordingly. (d) Subsections (b) and (c) shall apply upon the expiration of three months from the commencement date. The provisions of this subsection shall not derogate from the provisions of the Law referred to in subsection (b) or from the power of the Minister of the Interior under subsection (c).

YITZCHAK SHAMIR MOSHE NlSSIM Prime Minister Minister of Finance CHAIM HERZOG President of State

Passed by the Knesset on 4 Adar 5748 (22 February 1988) and published in Sefer Ha-Chukkim No 1239 of 12 Adar 5748 (1 February 1948), p. 36; the Bill and an Explanatory Note were published in Hatza'otChokNo. 1866 of 5748, p. 111. i Sefer Ha-Chukkim of 5740, p. 46; L.S.I, vol XXXIV, p. 47.

30 (No. 18) EQUALITY OF OPPORTUNITIES IN LABOUR LAW 5748-1988*

1. In this law - Définitions "Collective Agreement" has the same meaning as in the Collective Agreements including a widening order as defined in the said law and ,5717-1957׳ Law including a collective arrangement. "The Minister" - The and Social Welfare.

2. (a) An employer shall not discriminate between his employees or between Prohibition applications for employment on the basis of their sex, on the basis of their marital of Discrimination status, or on the basis of their being parents, with respect to any of the following: (1) acceptance for employment; (2) conditions of employment; (3) promotion; (4) training or professional studies; (5) dismissal or compensation for dismissal. (b) For the purposes of subsection (a) the setting of irrelevant conditions shall be seen as discrimination. (c) Under this section, an act shall not be considered as discriminatory where it is necessary by reason of the character or essence of the task or

position. (

3. (a) Any provision established by legislation, in a collective agreement or in Saving of a labour contract with respect to pregnancy, pregnancy leave, maternity nursing or Rights fertility, is not dicrimination. (b) This law shall not derogate from any additional right granted to a female worker under legislation, collective agreement or labour contract, and such additional rights shall not be deemed as discrimination.

4. Where a female worker may, in accordance with the employment conditions Parental customary at her place of employment, be absent from her work due to her child's Rights illness, this right shall be given to a male worker employed.in a place of employment where such conditions of employment apply, subject to his fulfilling one of the following:

Passed by the Knesset on 8 Adar 5748 (23 February 1988); and published in SeferHa-Chukkim No. 1240 of 14th Adar 5748 (3rd March 1988) p. 38; the Bill and an explanatory note were publised in Hatza'ot Chok 1804,5747, p. 64, and in Hatza'ot Chok 1848,5747, p. 324. 1 Sefer Ha-Chukkim 5717, p. 63; L.S.I. Vol 11, p. 58.

31 (1) his spouse works and has not been absent from her employment by virtue of her rights as stated; (2) the child is in his sole care.

Prevention 5. In order to remedy discrimination prohibited under Section )2(a)(2), an of employer shall not be entitled to derogate from the rights of another worker or to Aggravation of Conditions aggravate his situation.

Protection for 6. (a) An employer shall not harm an employee in the areas listed in section 2 a Complainant as a result of a complaint or claim of the employee under this Law or as a result of assistance granted to another worker in respect of a complaint or claim under this Law. (b) In a criminal or civil action for breach of subsection (a) it shall be a valid defense if the employer's action was taken because of a false complaint or for assisting in respect of a false complaint made deliberately and with the knowledge that the complaint was a false one.

Sexual Harassment 7. An employer shall not harm an employee in the areas specified in section 2 as in Employment a result of the employee refusing to acquiesce to a proposal or opposing an act of a sexual nature and which was done by the employer or by the employee's direct or indirect supervisor.

Advertisements 8. An employer or person requiring an employee will not publish an relating to •Vacancies for advertisement relating to an employment vacancy or assignment to vocational Employment training unless the advertisement is phrased in both masculine and feminine form, whether in singular or plural form, except for a vacancy to which section 2(c) applies.

Burden of 9. In a complaint of a job seeker or of an employee in respect of a breach of the Proof provisions of section 2, the employer shall be obliged to prove that he did not act in contravention to the provisions of section 2: (1) In respect of acceptance for employment, promotion, conditions of employment, assignment to vocational training or professional studies, or payment of compensation for dismissal - if the employer determined conditions or qualifications in respect thereof, and the job seeker or employee, as appropriate, has proven that the said conditions or qualifications have been fulfilled or reached;

(2) In respect of dismissal from employment - if the employee has proven that there was nothing in his behavior or actions that would serve as a reason to dismiss him.

Juristiction 10. The Labour Court shall have sole jurisdiction in civil cases arising from a and Remedies breach of the provisions of this Law, and shall be entitled: (1) to award damages, even if financial damage was not incurred, for an amount that it considers appropriate having regard to the circumstances;

32 (2) to issue an injunction or order, if it sees that the award of compensation alone will not be just; in issuing an order as stated, the Court will take into account, inter alia, the influence of the order on labour relations in the place of employment and the possibility that another worker will be harmed, and with respect to dismissals arising from reductions in work, the provisions of the collective agreement applying to the parties as well. The provisions of this subsection shall be valid in spite of the provisions of section 3(2) of the Contracts Law (Remedies for Breach of a Contract) 5731-19712.

11. Where the Labour Court decides the claim of a worker under this Law, that Delayed Salary the worker is entitled to a salary increment or severance payments, then for the purposes of the Wage Protection Law 5718-19583 the due date for their payment shall be the eight day after the granting of the decision and the "Determining Date", for the purpose of the salary increment, shall be the ninth day after the due date for payment as stated.

12. Claims for breach of the provisions of this Law may be made by the Right of employee, or by a workers organization that has representation at that place Claim employment, and, where there is not such organization - by the workers organization of which the employee is a member.

13. In a claim with respect to a breach of the provisions of this Law, the Labour Right of Intervention Court may permit the organization dealing with the rights of women to express its in Claims views, in the manner in which the court shall instruct.

14. The Labour Court shall not hear a civil claim in respect of breach of the Conscription provisions of this Law which has been submitted after the passage of six months from the day on which grounds for claim arose.

15. (a) A person in breach of the provisions of sections 2, 6, 7 or 8, shall be Penalties liable to double the fine set in section 61(a)(1) of the Penal Law, 5737-19774.

16. Where an offence under this Law has been carried out by an association, Personal responsibility each partner - excluding a limited partner - or responsible officer of that association for shall be held responsible therefor, and it shall be possible to charge him as though transgressions by an he had committed the offence, unless he has proven that the offence was committed association without his knowledge or that he adopted all reasonable measures to prevent it.

17. For the purposes of this Law, the State as an employer shall be as any other Law applying employer. to the State

18. (a) The Minister shall appoint inspectors to control the implementation of Inspectors the provisions of this Law.

Sefer Ha-Chukkim 5731, p. 16; L.S.I. Vol 25, p. 11. Sefer Ha-Chukkim 5718, p. 86; L.S.I. Vol. 12, p. 100. Sefer Ha-Chukkim 5737, p. 226; L.S.I. Penal Law, Special Volume.

33 (b) In order to carry out his duties under this Law an inspector may: (1) demand from any employer or any person requiring an employee and from any other person concerned to provide him with any information in his possession and pertinent to this Law; (2) after prior notification - to enter any place of work and interrogate the owners and any other person concerned in those premises, and to inspect documents relating to employees in that place of work. (c) An inspector may write a protocol of the answers and statements of any person he has interrogated under this section, and the protocol written as stated shall be considered as a statement written in accordance with section 2 of the Criminal Procedure (Testimony) Ordinance 5, and section 3 of the Ordinance shall apply to it.

(d) For the purpose of subsection (b), no person shall be required to hand over any evidence that may incriminate him. 19. (a) The Minister shall appoint a public council (hereinafter, the Council) whose members shall be: (1) representatives of Government Ministries who shall be determined by the Minister; (2) employee representatives - after consultation with the worker organization representing the largest number of workers in the State; (3) employer representatives - after consultation with the national representative bodies for employers which in the opinion of the Minister are concerned; (4) other public representative who in the opinion of the Minister are concerned. (b) The Minister or a person whom he shall appoint for this purpose shall be the chairman of the Council. (c) The Minister shall determine in regulations the period of office of the Council, its procedures and the number of its members, provided that the number of members of Government Ministries shall be three tenths of the members of the Council, as shall be the number of employee representatives and employer representatives, and the number of public representatives shall be one tenth of the members of the Council. (d) Should a Council member resign, die or become permanently incapable of discharging his functions the Minister shall appoint another person in his place

5 Laws of Palestine, Vol. 1, p. 439. for the remainder of his tenure, after consultation with the same body on whose advice that member of the Council was appointed.

20. The task of the Council is to advise the Minister in all matters pertaining to Tasks of the implementation of this Law, as well as in all matters pertaining to: the Council (1) the development of public awareness of all issues involved in equality of opportunity in employment; (2) the creation of conditions and arrangement of services to facilitate women going out to work; (3) equality of opportunity in promotion and in assignment to professional training for workers, male and female, in the place of work; (4) the publication of information on any matter within the area of the Council's role.

21. (a) For the purpose of section 2, the preference of a worker who is a Non- member of the employer's family and, in a corporate body, a member of the family applicability of a person with controlling interest, shall not be seen as discriminatory; for this purpose - (1) "Member of family" - spouse, parent, child, grandchild, brother, sister or the spouses of these; (2) "person with controlling interest in a corporation" a person in possession, alone or together with members of his family of the direct or indirect control of the business and administration of the corporation. (b) The provisions of this Law, excluding section 7, shall not apply to a worker employed for purposes other than the business or trade of the employer. (c) The provisions of this Law, excluding section 7, shall not apply in respect of an employer who employs less than six employees.

22. In section 7 of the Severance Pay Law 5723-1963 6. Amedment of the Severance Pay Law (b) (1) The marginal heading shall be replaced by "resignation of a Parent" (2) The provisions therein shall be marked (a) and shall be followed by: (1) The worker's spouse has been employed as a worker for at least six consecutive months immediately preceding the date of his resignation; for this purpose the period of a break in employment during which employer-employee relations continue shall be viewed as employment;

6 Sefer Ha-Chukkim 5723. p. 136; L.S.I. Vol 17, p. 161.

35 (2) the child is in his sole custody, or his sole care due to disability or illness of his spouse. (c) Where one of the couple resigns as stated in subsection (a) or (b) respectively, the provisions of this section shall not apply to the other spouse. (d) The Minister of Labor and Social Welfare may determine in regulations, with the approval of the Labor and Social Welfare Committee of the Knesset, provisions with respect to the obligation to submit notice to the employer for the purpose of this section from the couple or one of them and the consequences of the failure to submit notice as stated."

23. In the Womens' Labor Law, 5714-1954 7, in section 7 thereof, subsection (d) shall be followed by: (dl) The provisions of subsection (d) even when applicable by virtue of section 6A, shall apply, mutatis mutandis to a worker who worked for the same employer or in the same place for at least twenty four consecutive months until the birth of his child, provided that one of the following obtained: (1) His spouse was employed as a worker for at least six consecutive months prior to the beginning of his absence from work in accordance with the provisions of subsection (d). (2) The child is in his exclusive custody or in his exclusive care as a result of the incapacitation or sickness of his spouse. (d2) In the absence of one of the spouses from work as stated in subsection (d) or (dl) respectively, the provisions of those subsections shall not apply to the other spouse; however if one of the spouses is absent for a period shorter than as stated in subsections (d) or (dl) respectively, his spouse is entitled to be absent from work in accordance with those subsections for the remainder of the said period. (d3) For purposes of the calculation of the consecutive period as stated in subsections (d) and (dl), a period during which the work was discontinued but employer-employee relations maintained, shall be considered as work.

(d4) The Minister of Labor and Welfare may determine in regulations, with the approval of the Labor and Welfare Committee of the Knesset, provisions pertaining to the obligation of submitting notice to the employer with respect to this section from the couple, or from one of them, and pertaining to the results of failing to provide notice as stated.

7 Sefer Ha-Chukkim 5714, p. 87; L.S.I. Vol 26, p. 103. 24. In the Labor Courts Law, 5729-1969 ', in'the Second Schedule, in the Amedment of the Labor concluding passage there shall appear: "Equal Opportunities in Labor Law", Courts Law 5748-1988.

25. The Equal Opportunity in Labor Law, 5741-1981 2 is repealed. Repeal

26. (a) The Minister is charged with the implementation of this Law and he Implementation shall be entitled to make regulations in /all matters pertaning to its and regulations implementation. (b) The Minister may, with the approval of the Labor and Welfare Committee of the Knesset, determine in the regulations, provisions pertaining to the obligation of submitting notices to the employer in accordance with section 4, from either the couple or one of spouses and the results of the failure to give notices as stated.

27. This Law shall come into force on the 14th Nissan 5748 (1st April 1988). Commencement

YITZCHAK SHAMIR MOSHE KATZAV Prime Minister Minister for Labor CHAIM HERZOG and Welfare President of State

' Sefer Ha-Chukkim 5729, p. 87; L.S.I. Vol 26, p. 103. 2 Sefer Ha-Chukkim 5717, p. 87; L.S.I. Vol 26, p. 103.

37 (No. 19) STATE LOAN (AMENDMENT NO. 7) LAW, 5748-1988* \

1. In section 7 of the State Loan Law, 5709-19491, the figure "10,000" shall be replaced by the figure "20,000".

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister for Finance CHAIM HERZOG President of State

Passed by the Knesset on 11 Adar 5748 (29 February 1988) and published in Sefer Ha-Chukkum No. 1241 of 20 Adar 5748 (5 March 1988), p. 44; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1867, p. 116. 1 Sefer Ha-Chukkim of 5739, p. 112, L.S.I. Vol. XXXIII, p. 136; Sefer Ha-Hukkim of 5747, pp. 30 and 93; L.S.I. Vol. XLI, pp. 29 and 103. (No. 20) STATE SERVICE (BENEFITS) (AMENDMENT NO. 26) LAW, 5748-1988*

1. In section 35 of the State Service (Benefits) Law (Consolidated Version), Amendment of section 35 - ׳5730-1970 (1) in subsection (a)(2)(a), the number "65" shall be replaced by the number "60"; (2) in subsection (a)(2)(b), the number "65" shall be replaced by the number "60"; the words "two years" shall be replaced by the words "one year" and the words "and one year" shall be replaced by the words "and half a year"; (3) the following subsection shall be added after subsection (e): "(f) The provisions of this section shall not apply to a person entitled to a retirement pension who has reached the age of sixty-five years."

2. In section 33 of the Israel Defense Force (permanent Service) (Benefits) Law Amendment

2 of Israel (Consolidated Version) , the following subsection shall be added after the Defense Forces subsection (c): (Benefits) Law "(d) The provisions of this section shall not apply to a person entitled to a retirement pension who has reached the age of sixty-five years."

3. This Law shall come into force on the 1st of the month following its Commencement publication and shall apply also to a person who retired on pension before its and application coming into force.

YITZCHAK SHAMIR MOSHE NlSSIM Prime Minister Minister for Finance CHAIM HERZOG President of State

* Passed by the Knesset on 12 Adar 5748 (1 March 1988) and published in Sefer Ha-Chukkim No. 1241 of 20 Adar 5748 (9 March 1988), p. 44; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1867 of 5748, p. 116. 1 Sefer Ha-Chukkim of 5730, p. 60 - L.S.I, vol. XXIV, p. 57; Sefer Ha-Chukkim of 5747; p. 124. 2 Sefer Ha-Chukkim of 5745, p. 142 -- L.S.I, vol. XXXIX, p. 152; Sefer Ha-Chukkim of 5747; p. 88; L.S.I. vol. XLI, p. 95.

39 (No. 21) ORDINANCE (AMENDMENT NO. 8) LAW, 5748-1988*

the ,5730-1971׳ (In section 20 of the Prisons Ordinance (New Version .1 deinition of "court (beit mishpat)" or "judge (shofet)" shall be replaced by the following definition: "court (beit mishpat)" or "judge (shofet)" includes a court (beit din) within the meaning of the Religious Courts (Enforcement of Obedience) Law, 5716-19502, a day an of a court (beit din) as aforesaid, a magistrate within the meaning of the Courts Law (Consolidated Version), 5744-19843, and the chief clerk of a court (beit mishpat) or court (beit din) as aforesaid.

YITZCHAK SHAMIR CHAIM BAR-LEV Prime Minister Minister of the Police CHAIM HERZOG President of State

Passed by the Knesset on 12 Adar 5748 (1 March 1988) and published in Sefer Ha-Chukkim No. 1241 of 20 Av 5748 (9 March 1988), p. 45; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1799 of 5746, p. 326. 1 Dinei Medinat Yisrael (Nusah Chadash) No. 21 of 459 - NV vol. II, p. 237; Sefer Ha-Chukkim of 5744, p. 90 - L.S.I. vol. 38, p. 119. 2 Sefer Ha-Chukkim of 5710, p. 40; L.S.I, vol. X, p. 34. 3 Sefer Ha-Chukkim of 5744, p. 198; L.S.I, vol. 38, p. 271. (No. 22) NEGEV (AMENDMENT) LAW, 5748-1988*

hereinafter - the principal Law) section 1 shall Replacement) 5746-1986׳ ,In the Negev Law .1 be replaced by the following section: of section 1

1. For the purposes of this Law, the Negev is the area of the State south of Line "The Negev No. 110 in the South-North Israel axis (Kasini - Solander)."

2. The provisions of section 2 of the principal Law shall be indicated (a) and Amendment shall be followed by: of section 2 "(b) Priority shall be given to the development of the Negev in the activities of the Government Offices, including in the areas of settling, education, culture, industry and trade, tourism, transport, energy, infrastructure and absorption of .

3. Section 2 of the principal Law shall be followed by the following section: Addition of section 2A

Investment 2A. (a) The Minsiters as stated in section 4(a)(1), the Minister encouragement of Finance and the Minister serving as the Chairman of the and incentives Ministers Committee for the Development of the Negev or a Minister chosen by the Government for the purpose of this section, may, of their own initiative or at the suggestion of the Negev Council in its capacity under this Law, determine with the approval of the Knesset Finance Committee, the borders of areas in the Negev for the purpose of section 40D of the Encouragement of Capital Investments Law, 5719-19592; nothing in the provisions of this section shall derogate from the authority of the Ministers under section 40D as stated. (b) The Negev Development Council may recommend that the Minister exercise his legal authority in order to grant benefits that will promote the aims of this Law as stated in section 2.

4. In section 4(a) of the principal Law - Amendment of section 4 (1) In paragraph (2), the word "seven" shall be deleted, and in the concluding section shall come "and any other Minister who notified the Chairmen that he intends to appoint a representative (Netzig)"; (2) In paragraph (4) in the concluding section shall come the words: "and in a local authority headed by an appointee - a resident of the area of the authority as determined by the Head of the Authority";

Passed by the Knesset on the 19th Adar, 5748 (8th March, i 988) and published in SeferHa-Chukkim No. 1242 of the 27th Adar 5748 (17th March, 1988) p. 48; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1868, 5748, p. 118. SeferHa-Chukkim 5746, p. 186; L.S.I. Vol 40, p. 19!. SeferHa-Chukkim 5719, p. 234; L.S.I. Vol. 13, p. 258.

41 (3) Paragraph (6) shall be remarked (13) and shall be preceded by: "(6) a representative of the Jewish Agency for the and the International Zionist Federation; (7) a representative of the Jewish National Fund; (8) a representative of the Protected Nature Reserves Authority; (9) a representative of the worker's organization representing the largest number of workers in Israel; (10) a representative of the Israeli Industrialists Association; (11) a representative of the Negev Trade Bureau; (12) a representative of the Negev Committee founded by the Negev Kibbutzim and Moshavim;

Addition 5. Section 5 of the principal Law shall be remarked as "6" and shall be preceded

of section by me following section:

Budget 5. Within the framework of every budgetary year the Minister of Finance shall determine a budget for the Negev Council for the purposes of its activities and the employment of its employees.

SHIMON PERES GAD YAAKOBI and Minister of Economy CHAIM HERZOG Acting Prime Minister and Planning President of State

ARIEL SHARON Minister of Trade and Industry

42 (No. 23)

FISHERY ORDINANCE (AMENDMENT) (NO. 2) LAW, 5748-1988*

Amendment - 1937׳ ,In section 10(3) of the Fisheries Ordinance .1 of section 10 (1) In subparagraph (a), the words "a person fishing" shall be followed by "or gathering fish". (2) Subparagraph (c) shall be replaced by: "(c) A person in possession, controlling, presenting for sale, or selling marketable quantity of fish that were gathered or caught by the use of explosives or in which there is poisonous material or other damaging material, except where he has proven that he did not know, nor could he have known that the fish in his possession contained such material; for this purpose: "marketable quantity" means an amount weighing more than five kilograms; (3) In paragraph (2), subparagraph (a) shall be replaced by: "(a) Imprisonment for one year". (4) In paragraph (3), subparagraph (a) shall be replaced by: "(a) two years imprisonment"

SHIMON PERES ARYEH NECHEMKIN Foreign Minister and Minister of Agriculture CHAIM HERZOG Acting Prime Minister President of State

' Passed by the Knesset on the 19th Adar, 5748 (8th March, 1988) and published in Sefer Ha-Chukkim No. 1242 of the 28th Adar 5748 (17th March, 1988) p. 49; the Bill and an Explanatory Note were published in Hatza'ot ChokNo. 1853, 5748, p. 18. 1 P.G of 1937, Suppl. 1 p. 157 (English Edition); L.S.I. Vol 35, p. 44.

43 (No. 24) TRAFFIC ORDINANCE (AMENDMENT) (NO. 20) LAW 5748-1988*

Addition of 1. In the Traffic Ordinance, after section 69B shall come: section 69C

"Payment of 69C (a) A corporation shall not pay, directly or indirectly, a a Fine Imposed fine imposed on another, and an employer shall not pay a fine on Another imposed on his employee, for a transport offence; a person who breaches the provisions of this subsection shall be liable for one year's imprisonment. (b) Where an offence under subsection (a) has been carried out by an association, any person who, at the time of the offence, was an active manager, partner, with the exception of a.limited partner, or senior administrative employee responsible for the payment of the fine, shall be guilty of thereof, unless he has proven both of the following:

(1) That the offence was committed without his knowledge; (2) That he had taken all reasonable measures to prevent the offence.

SHIMON PERES HAIM CORFU Foreign Minister and Minister of Transport CHAIM HERZOG Acting Prime Minister President of State

Passed by the Knesset on 19th Adar 5748 (8 March 1988) and published in Sefer Ha-Chukkim No. 1242 17th Adar, 5748 (17th March, 1988) p. 50; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1839, 5747, p. 270. Dine; Medinat Yisrael Nusach Chadash 7, p. 173; L.S.I. New Version; Sefer Ha-Chukkim 5746 p. 198; L.S.I, vol 40 p. 204.

44

! (No. 25) 5748-1988״ EMPLOYMENT AUTHORITY (AMENDMENT NO.6) LAW

hereinafter - Amendment) 5719-1959׳ ,In section 42 (a) of the Employment Service Law .1 the principal Law), at its end shall come: of Section 42 "whether the employee had been sent for employment by the Employment Service or not".

2. Section 42 of the principal Law shall be followed by: Addition of section 42A

Prohibition of 42A. A person requiring workers shall not publish an Discriminatory advertisement in respect of an offer of employment which is Advertising discriminatory as stated in section 42."

3. In Section 77 of the principal Law, after "any of the provisions of Chapter 2" Amendment shall come "with the exception of section 42A". of section 77

4. Section 77 of the principal Law shall be followed by: Addition of section 77A

Discriminatory 77A. A person requiring an employee and who committs an Advertising - offence under section 42A shall be liable to double the fine Penalties determined in section 61(a)(1) of the Penal Code, 5737-1977.

SHIMON PERES MOSHE KATZAV Foreign Minister and Minister for Labor CHAIM HERZOG Acting Prime Minister and Welfare President of State

' The Law was published in Sefer Ha-Chukkim No. 1242 of 28th Adar 5748 (17th March 1988) (Translator's note - Date of Passage of Law missing in Sefer Ha-Chukkim). ' Sefer Ha-Chukkim 5719, p. 32; 5737, p. 122; L.S.I, vol 13, p. 29; L.S.I, vol. 31, p. 142. 2 Sefer Ha-Chukkim 5737, p. 226; 5740, p. 40; L.S.I. Special Volume - The Penal Law;

45 (No. 26) MAINTENANCE OF CLEANLINESS (AMENDMENT) LAW, 5748-1988* - hereinafter) 5744-1984׳ Amendment 1. In section 1 of the Maintenance of Cleanliness Law of Section I the principal Law), in place of the definition "disposal" shall come: "disposal" - including throwing, pouring, abandoning, leaving or the creation of litter by another method". Addition of 2. After section 8 of the principal Law shall come: section 8(a) through 8(d) "Leaving a 8A. (a) Where a vehicle has been left in a public place in one vehicle in a location for a period exceeding six days, the authorized body is public place permitted to order its towing from that place. (b) The authorized body shall only use its powers as stated in subsection (a) after having demanded of the owner of the vehicle to remove it within a period to be specified in the demand, and having notified him that should he fail to do so, then it intends to tow the vehicle and place it in a location to be specified in the notification. (c) A notice as stated in subsection (b) shall be affixed to the vehicle in a visible location and shall be sent by registered mail to the registered owner of the vehicle, if he can be identified, no less than fourteen days prior to the towing. Sale or return of vehicle to 8B. (a) Where a vehicle has been towed as stated in section 8A, owners after towing and its owner has not come to receive it within two months of the day that a notice as stated in section 8A (c) was handed to him, the authorized body shall be entitled to sell the vehicle. (b) Where the owner of the vehicle has requested to receive his vehicle, the authorized body shall be entitled to demand reimbursement of all its expenses in respect of towing and maintaining the vehicle and the payment of any fine in respect of offences connected with the use of that vehicle. (c) Where the vehicle has been sold as stated in this section, the proceeds of its sale be available to the owner of the vehicle, after deduction of the sums detailed in subsection (b).

Passed by the Knesset on the 19th Adar, 5748 (8th March 1988) and published in Sefer Ha-Chukkim No. 1243 of the 28th Adar 5748 (17th March 1988) p. 52; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1868, 5748, p. 119. 1 Sefer Ha-Chukkim 5744, p. 142; L.S.I. Vol 38, p. 190.

46 (d) A statement from the authorized body detailing the expenses as stated in subsections (b) and (c) shall be proof of the expenditures.

Encouragement 8C. In order to encourage the removal of vehicle scrap and to hand over' vehicles not in use, an authorized body shall be entitled to pay a for removal vehicle owner who brings his vehicle to a site for the removal of wreckage, a sum that it shall determine. Vehicle scrap 8D. A vehicle that has been brought or towed as stated in sections 8 through 8C, shall be deemed as scrap for the purpose of this Law and for the purpose of the traffic regulations, and shall become the property of the authorized body."

SHIMON PERES HAIM CORFU Foreign Minister and Minister of Transport CHAIM HERZOG Acting Prime Minister President of State (No.27) 5748-1988״ ,(LAND LAW (AMENDMENT NO. 11

Addition i. In the Land Law, 5729-19691, Section 59B shall be followed by: of Section 59C

Installation of 59C (a) The owner of an apartment who is himself disabled or a

a Lifting Device member of whose family living with him is disabled, is entitled, subject to the provisions of subsection (c), to install in a stairwell which is common property, a lifting device for invalids (hereinafter - lifting device) provided that all of the following have been fulfilled: (1) He has received a permit for the installation under the Planning and Building Law, 5725-19652 and has complied with all the conditions of the permit; (2) The engineer of the local Planning and Building Committee has confirmed in a certificate bearing his signature, that the installation of the lifting device does not prevent the other owners of apartments from having reasonable use of the stairwell; (3) The installation of the lifting device shall be done in such a way as to limit as much as possible the harm to other residents and to the appearance of the building. (b) "invalid", for the purposes of this section - a person who has an illness, physical handicap or other limitation, which significantly affects his ability to reach the apartment in which he resides. (c) A permit as stated in subsection (a) shall only be given after the agreement of the majority of the other residents has been given for the installation of the lifting device; provided that if the inspector finds that the owner of another apartment has disagreed for unreasonable cause or has made his agreement subject to unreasonable conditions and [the inspector] has therefore decided to permit the installation of the lifting device, his decision shall come in place of the agreement of the owner of that apartment.

* Passed by the Knesset on the 27th Adar, 5748 (16th March, 1988) and published in Sefer Ha-Chukkim No. 1244 of the 7th Nissan 5748 (25th March 1988) p. 54; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1872, 5748, p. 132. 1 Sefer Ha-Chukkim 5729, p. 259; L.S.I. Vol 23, p. 283; 5748, p. 6 L.S.I, vol. 42, p. 8. 2 Sefer Ha-Chukkim 5725, p. 307; L.S.I. Vol 19; p. 330.

48 (d) The owner of an apartment who has installed a lifting device in a common building, shall bear all the costs of installation of the lifting device, and the ongoing expenses for its proper maintenance, as well as the cost of restoring the building to its original state, after the disabled person has ceased to live in the apartment.

YITZCHAK SHAMIR Prime Minister Minister for Justice

CHAIM HERZOG President of State

\

\ \

\ (No.28) STATE SERVICE (BENEFITS) (AMENDMENT NO. 27) LAW, 5748-1988*

Amendment 1. In Section 20 of the State Service Law (Benefits) [Consolidated Version], of Section 20 5730-1970\ the following sub-section shall be added: "(d) A person who was accepted into the service within two years of his immigration to Israel and served at least ten years prior to his retirement, and does not receive a retirement allowance or social insurance payments from another country, and at the date of being accepted into the service was at least fifty years old, shall be entitled to a pension equallying no less than 35% of the determining salary; an employee as stated shall be entitled to a pension increment of 2% of his determing salary for each additional year of service over ten years, provided that his pension shall not exceed 70% of that salary."

Commencement 2. This Law shall come into force on the 1st of the month following its and publication and it shall apply in respect of a person who retired after 1 Nissan 5747 Applicability (31 March 1987).

YITZCHAK SHAMIR MOSHE NlSSIM Prime Minister Minister for Finance CHAIM HERZOG President of State

Passed by the Knesset on 27 Adar 5748 (16 March 1988) and published in ' Sefer Ha-Chukkim No. 1241 of 20th Adar 5748 (9th'March 1988); the Bill and an Explanatory note were published in Hatza'ot Chok 1876, 5748, p. 158. Sefer//a-Chukk/m 5730,p. 56; L.S.I. Vol 24p. 57;5747,p. 124L.S.I. Vol. 41 p. 131; 5748,p.44; L.S.I, vol. 42 p. 39

50 (No. 29) MUNICIPALITIES ORDINANCE (AMENDMENT) (NO. 12) LAW, 5748-1988*

1. In the Municipalities Ordinance (hereinafter - the Ordinance), after section 2 Addition shall come: of Section 2a

Formation 2A (a) The Minister for the Interior, with the agreement of the of a Local Minister for Industry and Trade and the Minister of Finance, is Industrial Council entitled to declare in an order, that an interurban industrial zone which includes or is planned to include a number of factories sharing infrastructure and public utilities (hereinafter - industrial site), whose boundaries he shall define in the order (hereinafter - the Establishing Order), shall be managed by a Local Industrial Council (hereinafter - the Council). >* (b) In an Establishing Order those items stated in Section 2 of the Ordinance shall be specified or arranged, and the provisions of the Ordinance shall apply to the Council, however - (1) Section 4 of the ordinance shall not apply; (2) The Establishing Order shall not include provisions in respect of elections; (3) The Council shall consist of of nine members, who shall be: (a) one representative of each of the following Ministry's "each of who shall be an employee of his Ministry: the Minister for the Interior, the Minister for Industry and Trade, the Minister of Health; the representative of the7 Minister for the Interior shall be the chairman; (b) three representatives of the local authorities bordering on the industrial site; (c) three representatives of the factories in the industrial site. (4) The Council shall have the following duties and powers: (a) The guarding of all of the public networks currently located at the industrial site, including infrastructural networks,

Passed by the Knesset on the 4th Nissan, 5748 (22nd March, 1988) and published in Se/er Ha-Chukkim No. 1244 of the 7th Nissan 5748 (25th March, 1988) p. 55; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1863, 5748, p. 100. Sefer Ha-Chukkim 5743, p. 130; L.S.I. Vol 37, p. 103.

51 land development, roads, sewage and drainage systems, water, gardening, electricity, shelters and other public areas; (b) Guarding and maintenance of public areas and installations at the industrial site; (c) Supervision of the compliance with the laws, regulations and orders relating to building, operation and maintenance of factories on the industrial site; (d) Supervision over reprocessing of energy and environmental protection at the industrial site; (e) Organization and management of shared services at the industrial site; safety, fire extinquishing services, first aid and transport; (5) (a) The Municipality shall prepare a budgetary proposal for every budgetary year; the proposal shall require the approval of the Minister of the Interior and the Minister of Finance; (b) The Municipality shall not undertake any financial liability except within the framework of the approved budget; (c) Where a deficit is created in the implementation of the budget, of an amount exceeding the amount determined for that purpose, the Municipality shall bring the matter to the attention of the Minister of the Interior and the Minister of Finance, no later than half way through the financial year in which the deficit was created;

(d) The Minister of the Interior, in consultation with the Minister of Finance may determine the number of positions that the Municipality is entitled to fill.

YITZCHAK SHAMIR YITZCHAK SHAMIR Prime Minister Minister of Interior CHAIM HERZOG President of State (No.30) BUDGETARY PRINCIPLES (AMENDMENT No. 4) LAW, 5748-1988*

hereinafter referred Amendment) 5745-1985׳ In section 1 of the Budgetary Principles Law .1 to as "the principal Law"), the following definition shall be inserted after the of section 1 definition of "the Committee" - "tax benefits" means exemptions from, concessions as to or reductions of taxes, fees and other compulsory payments to be made to the Treasury;

2. In section 2 of the principal Law, subsection (b) shall be replaced by the Amendment following subsection: of section 2 "(b) The Law shall be appended with: (1) a forecast of receipts and loans; (2) a forecast of amounts not collected by reason of tax benefits."

3. In section 6(c) of the principal Law, the words "or the Foreign Trade Amendment Guarantees Law, 5719-19592" shall be inserted after the words "the State of section 6 Guarantees Law, 5718-1958".

4. In section 8 of the principal Law - Amendment of section 8 (1) In sub-paragraph (A), the words "on condition that the amount expended under any budgetary section of the Business Enterprises Budget does not exceed the amount of revenue actually collected under that budgetary section in that financial year" shall be added at the end; (2) Subsection (d) shall be re-marked as subsection (e) and the following subsection shall be inserted before it: "(d) The forecast of revenue to cover the Business Enterprises Budget in any financial year shall be as stated in the Annual Budget Law." (3) The following subsection shall be added after subsection (e): "(f) For the purposes of the Business Enterprises Budget, "revenue" includes the value of the services provided or the property supplied in any financial year."

Passed by the Knesset on 5 Nissan 5748 (23 March 1988) and published in Sefer Ha-Chukkim No. 1245 of 11 Nissan 5748 (29 March 1988), p. 58; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1866 of 5748, p. 108. 1 Sefer Ha-Chukkim of 5745, pp. 60 and 202 - L.S.I, vol. XXXIX, pp. 61; Chukkei Taktziv of 5746, p. 10 Chukkei Taktziv of 5747, p. 260. 2 Sefer Ha-Chukkim of 5719, p. 220; L.S.I, vol. XIII, p. 244.

53 Amendment 5. In section 10(g) of the principal Law, the words "and the amount specified in of section 10 the definition of "mode of financing" in section 32 shall be inserted after the expression "and 43."

Amendment 6. In section 11 of the principal Law, in subsection (c)(2), the words "forecast of of section 11 revenue" shall be replaced by the words "forecast of receipts", and the closing passage, beginning with the words "for this purpose", shall be deleted.

Amendment 7. The following subsection shall be added at the end of section 12: of section 12 "(d) At the proposal of the Minister concerned or another person in charge of a budgetary section, the Minister of Finance may, by notice to the Committee, prescribe the purposes for which the amounts are to be expended, posts filled in the program that under the Annual Budget Law has been designated for reserve or surplus purposes; provided that without the prior approval of the committee he shall not increase the program in this manner by an percent of the 15 amount exceeding 480,000 new shekalim and 15 percent of the program or by a number of posts exceeding twenty-five or 25 percent of the number of posts for the program."

Amendment 8. In section 17 of the principal Law - of section 17 (1) subsection (b) shall be repealed, and the mark "(a)" shall be deleted. (2) the words "where the amount of the liability exceeds 20,000,000 shekalim" shall be deleted.

Amendment 9. In section 20 of the principal Law, in paragraph (2), the words "determined by of section 20 the Minister of Defense and the Minister of Finance and not exceeding the amount" shall be inserted after the words "of an amount", and the words "to the amount of expenditure saved by it in consequence of the redemption of the actual days of reserve service" shall be replaced by the words "to the said amount". Amendment 10. In section 21 of the principal Law, in paragraph (2) of the definition of "body of section 21 corporate", the words "or a trust" shall be inserted after the words "a company limited by guarantee", the words "appointed a member" shall be replaced by the words "appoints a director or trustee, as the case may be".

Amendment 11. In section 29 of the principal Law, the words "or an assisted body as defined of section 29 in section 32" shall be inserted after the words "A budgeted body". Addition 12. The following section shall be inserted after section 31 of the principal of section 31A Law: Calculation 31A. (a) In this section, "provider of public service" means a of costs of performer of body corporate or a government company or some other body to public service whose budget the government contributes directly or indirectly, which concentrates more than half the supply of goods or services

54 in a particular zone and in respect of which the government has determined by notice in Reshumot that it is the performer of a service to the public for the purposes of this Law. (b) The performer of a public service shall prepare once a year a report of the cost of producing a product or rendering a service provided by it (hereinafter referred to as a "cost report") and shall present it to the Minister of Finance and to the Minister in charge of the field of operations of the performer of that service. (c) The Minister of Finance may, with the approval of the government, prescribe by regulations the particulars to be included in a cost report, the means of its preparation, the period for which it shall be prepared and the time of the presentation. (d) The Minister of Finance may, with the approval of the government, enact provisions as to the financial and accounting data on the basis of which a cost report shall be prepared; such provisions may be general or for a particular category of performers, or for a particular performer, of a service to the public.

13. The following definitions shall be added at the end of section 32 of the Amendment principal Law. of section 32

"reduction of State revenue" means an increase of tax benefits or some other direct decrease of State revenue; "manner of financing" means either of the following: (1) a decrease of the amount of expenditure under any head or heads of the Annual Budget Law, any such decrease not prescribed by Law shall, at the request of the Minister concerned, be made by notice of the Minister of Finance to the Committee: Provided that an amount exceeding 600,000 new shekalim shall not in this manner be deducted from the Expenditure Budget without the prior approval of the Committee: (2) the imposition, or an increase of the rate of, any tax, fee or other compulsory payment or some other increase of State revenue from a source other than a loan.

14. The following section shall be inserted after section 39 of the principal Addition of section 39A LawT : Legislation 39A. Where the implementation of a Bill proposed to the Knesset budget"3""8 involves any expenditure, or the assumption of liability for any expenditure, from the State Budget or any reduction of State revenue, the text of or explanatory note to the Bill shall indicate the manner of financing the expenditure or reduction.

55 Amendment 15. Section 40 of the principal Law shall be re-marked as section 40(a) and the of section 14 following subsection shall be added thereafter: (b) Regulations whose implementation involves a reduction of State revenue shall not be made unless financing is provided for by a parallel reduction of the estimated amount of State revenue for the first year of their application.

Repeal of 16. Section 51 of the principal Law is hereby repealed. section 51

Publication 17. This Law shall be published in /?esAumof within thirty days of the date of its adoption.

YITZCHAK SHAMIR MOSHE NlSSIM Prime Minister Minister for Finance CHAIM HERZOG President of State

56 (No.31) PENAL LAW (AMENDMENT NO. 22), 5748-1988*

Article Five shall be replaced Replacement ,5737-1977׳ ,In Chapter Ten of the Penal Law .1 of A by the following article: Fivet of Chapter Ten Rape 345 (a) A person who has sexual intercourse with a woman - (1) without her free consent through the use of force the infliction of physical suffering, the application of other means of pressure or the threat of one of these; it shall be immaterial whether such force, suffering, other pressure or threat is applied or inflicted or exercised on the woman or some other person; or (2) with her consent, obtained by deception as to the person committing the act or as to its nature; or (3) with or without her consent, where she is a minor under fourteen years of age; or (4) by taking advantage of her being in a state of unconsciousness or some other state preventing her from resisting or of her being mentally ill or intellectually defective is a rapist and is liable to imprisonment for a term of sixteen years. (b) Notwithstanding the provisions of subsection (a), a rapist is liable to imprisonment for a term of twenty years if the rape is committed under any of the following circumstances: (1) in the case of a minor who has not yet completed her sixteenth year, under the circumstances specified in (a)(1), (2) or (4); (2) while making a threat with a firearm or cutting weapon; (3) while causing bodily or mental harm or pregnancy; (4) while ill-treating the woman before or during or after the act;

Passed by the Knesset on 4 Nissan 5748 (22 March 1988) and published in Sefer Ha-Chukkim No. 1246of 13 Nissan 5748 (31 March 1988), p. 62; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1797 of 5746, p. 303. Sefer Ha-Chukkim of 5737, p. 226; L.S.I. Special Volume: Penal Law, 5737-1977; Sefer Ha-Chukkim of 5747, p. 80 L.S.I. Vol. 41, p. 85.

57 (5) in the presence of another or others who has or have associated with him for the commission of the rape by one or some of them.

346. (a) A person who has sexual intercourse with a minor who has completed her fourteenth but has not completed her sixteenth years and who is not married to him, or who has sexual intercourse with a minor who has completed her sixteenth but has not completed her eighteenth year, while taking advantage of a relationship involving dependence, authority, or an educational or supervising relationship or while falsely promising marriage is liable to imprisonment for a term of five years. (b) A person who has sexual intercourse with a woman under twenty-one years of age who is his descendant or the descendant of his wife is liable to imprisonment for a term of seven years. (c) A person who has sexual intercourse with a woman who has completed her eighteenth year while taking advantage of his authority in employment relations or in any service, or in consequence of a false promise of marriage while representing himself as unmarried although he is married, is liable to imprisonment for a term of three years. 347. (a) A person who commits an act of sodomy upon a person who has completed his fourteenth year but has not completed his eighteenth year is liable to imprisonment for a term of five years. (b) A person who commits an act of sodomy upon a person under any of the circumstances mentioned in section 345 - mutatis mutandis - shall be treated as a rapist. (c) For the purposes of this section, "act of sodomy" means the penetration of the sexual organ of a man into one of the orifices of the body of a person other than by sexual intercourse. 348. (a) A person who assaults or makes indecent gestures towards any person for the purpose of sexual stimulation, gratification or abasement shall be liable to imprisonment for a term of three years. (b) A person who performs an act referred to in subsection (a) in relation to a person under sixteen years of age is liable to imprisonment for a term of five years. (c) A person who, under the circumstances mentioned in subsection (a), introduces any object into the sexual organ of a woman or the anus of any person shall be treated as a rapist. Indecent act 349. A person who, for the purpose of sexual stimulation, gratification or abasement, performs an indecent act in public or in any place before a person under sixteen years of age, such act not being one of the offenses mentioned in sections 345 to 348, is liable to imprisonment for a term of three years. Causing act 350. For the purposes of an offense under this article, it shall be to be performed immaterial whether a person performs the act or causes it to be performed. Shortening of minimum term 351. Where a minimum penalty is prescribed for an offense under this article, the court may, in view of special extenuating circumstances which shall be recorded, impose a term of imprisonment shorter than the minimum term, provided that it shall not be shorter than one quarter thereof. Prohibition of 352. (a) A person who publishes the name of a person, or publication anything likely to lead to the identification of a person, as the victim of an offense under this article is liable to imprisonment for a term of one year. Limitation of (b) A person shall bear no criminal responsibility under criminal subsection (a) if the person whose name or identifying data is responsibility published as aforesaid has consented to the publication before the court. 353. In proceedings for an offense under section 346(a), it shall be a defense for the accused that the difference in age between him and the minor does not exceed two years if the minor consented to the act and if the act was done in the course of ordinary friendly relations and without advantage being taken of the status of the accused.

2. In the Amendment of Procedure (Examination of Witnesses) Law, Amendment of Procedures the following section shall be inserted after section 2: (Examination of ,5718-1957׳ Witnesses) Law Examination of 2. (a) The court shall not authorize an investigation into the a victim of a sexual history of the victim of an offense under Article Five of sexual offense Chapter Ten of the Penal Law, 5737-1977, unless it considers, for reasons which shall be recorded, that a prohibition of such an investigation may cause an injustice to the accused.

YITZCHAK SHAMIR AVRAHAM SHAMIR Prime Minister Minister of Justice CHAIM HERZOG President of State

Sefer Ha-Chukkim of 5718, p. 16; L.S.I., Vol. XII, p. 21.

59 (No.32) PENAL LAW (AMENDMENT N0.23), 5748-1988*

Amendment 1. In section 2 of the Penal Law', (hereinafter - the Principal Law) of section 2 (1) The definition of "publication" shall be replaced by: "publication" - writing, print, or any other visual presentation and any other aural means intended to present words or ideas, whether by themselves or via any other means: "published" - (1) Orally - to produce sounds either verbally or via other means, at a public gathering or in a public place, or in a manner by which people located in a public place are able to hear them, or to play them on radio or television broadcasts presented to the public: (2) In a publication that is not an oral presentation - to distribute it amongst people or to present it in a manner by which people located in a public are able to see it, or to sell it or offer it for sale in any place, area or to distribute it by way of television broadcasts for the public."

Amendment 2. The contents of section 35 of the principal Law shall be indicated as

of Section 35 subsection (a), and shall be followed by: "(b) Should the punishment be a fine or compensation under section 77, the Court shall be entitled to prescribe it as an amount that does not exceed the amount as adjusted as of the day of the Court's decision, and if an appeal had been filed, a fine or compensation not exceeding the adjusted amount on the day of the decision in the appeal; the "adjusted amount" for this purpose, shall mean the amount prescribed by law on the day of commission of the offence as may have been altered in an Order under section 64, and with respect to compensation under section 77, the rate of the compensation that was specified by the Law on the day of the commission of the offence as altered by Order as stated.; (c) Should the amount of the fine or compensation be adjusted not in accordance with the sub-section (b), the Court is entitled to impose a fine or a compensation for an amount not exceeding its amount on the day of the commission of the offence, with the addition of linkage increments, determined in accordance with the changes of the index as published immediately prior to the day of the Court decision; in this

Passed by the Knesset on 4th Nissan 5748 (22 March 1988) and published in SeferHa-Chukkim No 1246 of 13 Nissan 5748 (31 March 1988); the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1814, of 5747, p. 114, and in Halza'ot Chok 1872, 5748, p. 133

60 section "index" means the consumer price index as published by the Central Bureau of Statistics."

3. In section 52 of the Principal Law, sub-section (c) shall be replaced by the Amendment following sub-section: of section 52 "(c) The period of suspension shall begin on the date of the sentence and where at that time the sentenced person is undergoing a penalty of imprisonment - on the date of his release from imprisonment; However the period during which the inmate is outside the precincts of the by reason of his release on bail under Article B, of Chapter C of the Criminal Procedure Law [Consolidated Version], 5742-1982 2,byreason of a special vacation or under Article Bl of Chapter F, shall be considered as a suspended period cumulative to the suspended period as determined by the Court; unless the Court ordered otherwise."

4. In section 56 of the principal Law - Amendment of section 56 (1) In sub-section (a) the words' 'extension of the period of suspension for a period" shall be replaced by the words "extension of the period of suspension or its renewal for a period;" (2) Subsection (b) shall be followed by the following subsection: "(c) Should the Court extend the period of suspension for an additional period prior to the termination of the period of suspension, the additional period shall begin upon the termination of the period of suspension; Should the Court renew the period of suspension after the termination of the period of suspension, the additional period of suspension shall begin on the date of the sentence, unless the Court specified otherwise."

5. In section 63 of the principal Law, subsection (c) shall be followed by the Amendment following sub-section: of section 63 "(d) T2

6. In section 71 of the principal Law the words "where imprisonment as Amendment aforesaid has not been imposed" shall be preceded by the words "where a fine alone of section 71 was imposed for the offence, the period of imprisonment in place of the fine shall not exceed one year."

7. In section 7 of the principal Law - Amendment of section 77 (1) The contents of the section shall be indicated as subsection (a) and the sum 50,000 Shekalim "shall be replaced by "thirty thousand New Shekalim":

Sefer Ha-Chukkim51A2, p. 43; L.S.I. Vol 36, p. 35.

61 (2) Subsection (a) shall be followed by the following subsection: (b) Compensation under this section shall be determined in accordance with the value of the damage or suffering caused, as assessed on the date of the commission of the offence, or on the date of the decision regarding damages, whichever the larger. (c) For purposes of collection, the law regarding compensation shall be the same as that regarding a fine; the amount paid or collected on the account of a fine complemented by the obligation of compensation, shall initially be calculated against the payment of compensation.

Amendment 8. In section 78 of the principal Law - of section 78 (1) The words "and for purposes of the collection of the amount awarded" - shall be deleted. (2) The words "in an appeal against the conviction which lead to" shall be replaced by the words "in an appeal against a verdict which lead to". Amendment 9. In section 134(a) of the principal Law, the words' 'Any person who publishes of section 134 any words or prints or publishes or reproduces any publication of a ", shall be replaced by the words "Any person who publishes, prints or reproduces a publication of a ". Amendment 10. In section 137 of the principal Law, the words "that the words alleged to be of section 137 seditious are true" shall be replaced by the words "that the publication alleged to be seditious is true." Amendment 11. In section 139 of the principal Law, the words "by his agent of words alleged of section 139 to be" shall be replaced by the words " published by the agent alleged to be", and the words "writing and publishing" shall be replaced by "for producing and publishing

־ Amendment 12. In section 149 of the principal Law of section 149 (1) The marginal note shall be replaced by "Publications of an unlawful assosciation": (2) The words "who prints, or publishes or transmits through the post any book, periodical, pamphlet, handbill, poster or newspaper" shall be replaced by the words "who makes, prints, publishes or transmits through the post any publication". Amendment 13. In section 166 of the principal Law, the word "writing" - shall be deleted. of section 166

Replacement 14. Section 168 of the principal Law shall be replaced by the following of section 168 section:

62 168. A person who without such justification or excuse as would be sufficient in "Disparage• an action for defamation of a private private person, published anything liable to ment of foreign personalities degrade, revile, or expose to hatred or contempt, any king, president, ruler, ambassador or another dignitary of a foreign state, is liable to imprisonment for three years.:

15. In section 173 of the principal Law - Amendment of section 173 (1) In paragraph (1) the words "print, writing, picture or effigy calculated to" shall be replaced by "a publication calculated to"; (2) In paragraph (2), the word "utters" shall be replaced by "induces the hearing".

16. Section 266 of the principal Law shall be followed by the following Addition of section: section 267 "Removing 267. (a) A person who without permission removes a document document from the custody of any of the institutions of the State, or of a local from custody authority, is liable to imprisonment for three years. (b) A public servant charged with the treatment or safeguarding of a document, and illegally gives the document to another, and the document is removed from the custody as aforementioned in subsection (a) is liable to imprisonment for five years. (c) In this section "document" means - in writing or any other means for recording something."

17. In section 287 of the principal Law, the words "unless any other penalty or Amendment mode of proceeding is expressly prescribed for such disobedience" - shall be of section 287 deleted.

18. In section 390 of the principal law, the words "five hundred Lirot" shall be Amendment replaced by the words "one thousand New Shekels". of section 390

19. In section 391 of the principal law, the words "five hundred Lirot" shall be Amendment replaced by the words "one thousand New Shekels". of section 391

20. Section 436 of the principal Law is repealed. Repeal of section 436

21. In section 480 of the principal Law - Amendment of section 480 (1) The marginal note shall be replaced by "defacement of coin"

(2) The words "any name or word " shall be followed by the words1 'or intentionally melts a coin"

22. In the Criminal Procedure Law [Consolidated Version], 5742-1982, section Amendment 187 shall be replaced by the following section: of Criminal Procedure Law22

63 Amendment of Military Justice Law "(d) The period of suspension shall begin from the day of the sentence, and if the sentenced was then undergoing a penalty of imprisonment or detention - from the day of his release from imprisonment or detention; provided that the period during which the inmate is outside the precincts of the prison by reason of a special vacation or under Article Bl of Chapter F, shall be considered as a suspended period cumulative to the suspended period as determined by the Court; unless the Court ordered otherwise." (2) In section 33 - (a) In sub-section (c) the words "extension of the period of suspension " shall be replaced by the words "extension of the period of suspension or its renewal;" (3) The opening passage of section 35 shall be indicated (a) and shall be followed by:" - (b) The prescription of the fine with regard to the value of the damage or suffering caused, shall be in accordance with their value on the day of the commission of the offence, or on the day of the Tribunal's decision, whichever the larger of the two." (c) For purposes of collection, the law regarding compensation shall be the same as that regarding a fine; the amount paid or collected on the account of a fine complemented by the obligation of compensation, shall initially be calculated against the payment of compensation.

24. In the Second Schedule of the Courts Law [Consolidated Version], 5744-19844, section "259(2) shall be followed by "267(b)"

3 Sefer Ha-ChukkimSl 16, p. 87; L.S.I. Vol 8, p. 187. 4 Sefer Ha-Chukkim 5744, p.198; L.S.I. Vol 38, p. 271.

64 25. The provisions of sections 2,5 and 7 shall also apply to a fine or Transitional compensation imposed for an offence committed prior to their effective date, if no Provision final verdict has yet been given.

YITZCHAK SHAMIR AVRAHAM SHARIR Prime Minister Minister of Justice CHAIM HERZOG President of State

65 (No.33) PUBLIC HEALTH ORDINANCE (AMENDMENT) (NO.10) LAW.5748-1988*

:1940׳ ,Amendment 1. In Section 70 of the Public Health Ordinance of Section 70 • (1) In the closing section in place of "the director" shall come "the Minister of Health"; (2) The section shall be completed as follows: (c) which fix fees for licences, and registration fees for hospitals and clinics and payments for certificates and statements which the Ministry of Health issues under this Ordinance."

YITZCHAK SHAMIR SHOSHANA AREBELI Prime Minister ALMOZLINO CHAIM HERZOG Minister of Justice President of State

Passed by the Knesset on 4th Nissan 5748 (22 March 1988) and published in Sefer Ha-Chukkim No. 1246 of 13th Nissan 5748 (31 March 1988); the Bill and an Explanatory note were were published in Hatza'ot Chok No. 1876, of 5748, p. 157. Iton Rishmi 1940, Suppl 1 p. 181, P.G. of 1940, Suppl.l p 239 (English Edition); Sefer Ha-Chukkim 5744, p.93, L.S.I. Vol. 123.

66 (No.34) WAR LOAN (LAND APPRECIATION CHARGE), 5734-1974 (AMENDMENT NO. 2) LAW. 5748-1988*

Amendment 5734-1974׳ ,In Section 1 of the War Loan (Land Appreciation) Law .1 (hereinafter - the principal Law), at its end, shall come: section I "(3) "Fiscal Year" - a period of twelve months commencing on 1 April in each year."

2. In section 10 of the principle Law, in place of "section 7" shall come "sections Amendment 7 and 7a". of section 10

3. In the War Loan and Procurement Financing Loan Law, 5734-19732 - Amendment of the War (1) In section 1, at its end shall come: and Procurement- "(5) "Fiscal Year - a period of twelve months commencing on 1 Financing April in each year." Loan Law (2) In section 7(a), after subsection (c) shall come: "(d) The provisions of this section shall also apply, with appropriate amendments, to a loan under the War Loan (Land Appreciation) shall ־ "Law, 5735-1975, however, for this purpose, "Base Index refer to the index published for the month of August 1986."3

4. In the Defense Loan Law, 5732-19724, in Section 1, at its end shall come: Amendment of the Defense "(5) "Fiscal Year" - a period of twelve months commencing on 1 April Loan Law in each year."

5. (a) Sections 1, 3(1) and 4 shall come into force on the 30th Kislev 5747 (1 Commencement January 1987). (b) Section 2 shall come into force on the 13th Elul 5745 (30st August 1985). (c) Section 3(2) shall come into force on the 27th Av 5746 (1st September 1986).

" Passed by the Knesset on 4th Nissan 5748 (22 March 1988) and published in Sefer Ha-Chukkim No. 1247 of 28th Nissan 5748 (15th April 1988); the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1876, of 5748, p. 156. ' Sefer Ha-Chukkim 5734, p. 114; 5741, p. 106 L.S.I, vol 28. p. 118, L.S.I, vol. 35, p. 111. 2 Sefer Ha-Chukkim 5734, p. 3, p. 59, and p. 125 L.S.I, vol. 28, p. 3, 56, 130; 5738, p. 20; L.S.I, vol. 32, p. 21; 5739, p. 39 and p. 124 L.S.I, vol 33, p. 43, 150; 5745, p. 10, L.S.I, vol 39, p. 14. 3 Sefer Ha-Chukkim 5735, p. 114, L.S.I, vol 29 p. 145; 5738, p. 20, L.S.I, vol 32 p. 21; 5740, p. 39, L.S.I. vol. 34, p. 40.

67 Publication 6. This law shall be published in Rcshumot within thirty days of its acceptance.

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister of Finance CHAIM HERZOG President of Stiite

68 (No.35) STATE ECONOMY (ARRANGEMENTS) (LEGISLATIVE AMENDMENTS FOR ATTAINMENT OF BUDGETARY GOALS) LAW, 5748-1988*

1. This Law comes to amend, repeal or extend the validity of various laws, with Purpose the aim of reducing the State expenditure and increasing the State revenue, to allow adherence to the budgetary aims as determined in the Budget Law for the 1988 Financial Year, 5748-1988.

2. (a) In the State Economy (Emergency Arrangements) Law1 Amendment of State (1) In section 24, the words "1st Nissan 5747 (31st March 1987) shall Economy be replaced by the words "24th Adar Bet 5749 (31st March 1989)". (Emergency Arrangements; (2) In section 26, the words 13th Nissan 5748 (31 st March 1987) shall Law be replaced by the words "24th Adar Bet 5749 (31st March 1989)". (b) In paragraph (6) of the aforementioned section 26, the following words shall follow section 19(b) "and the employee is entitled to demand payment with the addition of linkage and interest increments, as determined with regard to a benefit not paid on time".

3. The Income Tax Concessions (Investment in Securities)(Consideration Repeal of

2 Concessions Earmarked for Scientific Research) Law, 5744-1983 is repealed. for Scientific Research Law

4. In the Pension Points Taxation (Temporary Provision) Law, 5747-19873, Amendment of Pension section 2 shall be amended as follows: Points (1) In subsection (a) - Taxation Law (a) In paragraph (2) the words "in the first three months of the fiscal year of 1988" shall be replaced by "in the fiscal year of 1988"; (b) The following words shall conclude the paragraph- (3) "The sum of pension points that a single person is entitled to in the first three months of the fiscal year 1988 shall be considered as chargeable income, if his income was marginal during that year." (2) In subsection (d) the words "or 1988" shall be replaced by the words "1988 or 1989, respectively".

" Passed by the Knesset on 5th Nissan 5748 (23rd March 1988) and published in SeferHa-Chukkim No. 1248 of 30th Nissan 5748 (17th April 1988); the Bill and an Explanatory Note were published in Hatza'ot Chok 1866, of 5748, p. 111. 1 SeferHa-Chukkim 5746, p. 15; L.S.I, vol 40, p. 15; 5747, p. 93, L.S.I, vol. 41, p. 97. 2 SeferHa-Chukkim 5744, p. 14; L.S.I. vol 38, p. 16. 3 Sefer Ha-Chukkim 5747, p. 99; L.S.I, vol 41, p. 109.

69 Amendment 5. In the Charge on Imported Services Law (Temporary Provision) Law of Charge on 4 Imported 5745-1985 , in section 18(a) the words 13th Nissan 5748 (31st. March 1988) shall Services Law be replaced by the words "24th Adar Bet 5749 (31st March 1989).

Amendment 6. In the Compulsory Education (Amendment No.16) Law, 5744-19845, in of Compulsory Education Law section 2, "5749" shall be replaced by "5751" and "5755" shall be replaced by "5757".

6 Amendment 7. In the Ports Authority Law, 5721-1961 , section 35 shall be followed by the of Ports following section: Authority Law Annual 35A. (a) As of the financial year of 1988, the Authority shall pay an annual payment payment to the State. (b) The annual payment shall be the sum of 55 million New Israeli Shekels, paid from the capital account of the Authority, and will be paid in twelve monthly installments, on the 14th of each month, with the addition of increments for the rise in the consumer price index (hereinafter - the index) from the basic index to the new index; for this purpose, "the basic index" means the average index of the financial year of 1987, and the "new index" shall mean the index last published prior to each day of payment.

(c) As of the financial year of 1991, the Minister and the Minister of Finance may, by order, and after consultation with the Authority and with the approval of the Finance Committee of the Knesset, alter the sum of the annual payment; should an order as stated not be issued, the provisions of section (b) shall remain in force; however, if in any particular year both the calculated interest and the Authority's revenue from that the sum specified interest be higher in subsection (b), it being linked as stated, the annual amount shall be increased to the amount of the calculated interest or to the total revenue of the Authority from interest, whichever be the lower; for purposes of this section - (1) "Calculated interest" means - the calculated interest accruing from the preceding financial year for permanent assets in use and being established, in the premises of the Authority's ports, the interest as stated having been adjusted to the date of the accounting for the previous financial year, prior to the deduction of depreciation costs; (2) "Authority's revenue from interest" means - the total amount of interest revenue, with the exception of interest accruing to pension funds, that the Authority actually received during the preceding financial year, that amount having been accounting adjusted to the date of for the previous year;

4 SeferHa-Chukkim 5745, p. 2; 5746, p. 49; 5747, p. 100; L.S.I, vol 39 p. 3, L.S.I, vol 40, p. 45, L.S.I, vol 41,p. 111. 5 SeferHa-Chukkim 5744, p. 160; L.S.I, vol 38, p. 218. 6 SeferHa-Chukkim 5721, p. 145; 5742, p. 198; L.S.I, vol 15, p. 152, vol 36, p. 209.

70 (3) For purposes of calculation according to this subsection, the amounts of calculated interest and the Authority's revenue from interest shall be linked to the index, calculated by increase between the most recently published consumer the price index and the index of date of the accounting in the previous financial year.

35B. The amount of the fee according to this law shall not be raised except with Fees the approval of the Finance Committee of the Knesset.

section Amendmen40 shall tb e followed ,־ In the Aerodromes Authority Law, 57377 1977 .8 by the following section: of the Airport v Authority Law 40A (a) As of the financial year of 1988, the Authority shall pay an annual Annual payment to the State. payment (b) The annual payment shall be the sum of 10 million New Israeli Shekels, paid from the capital account of the Authority, and will be paid in twelve monthly installments, on the 14th of each month, with the addition of increments for the rise in the consumer price index (hereinafter - the index) from the basic index to the new index; for this purpose, "the basic index" means the average index of the financial year of 1987 and the "new index" shall mean, the index last published prior to each day of payment.

(c) If in a particular year both the calculated interest and the Authority's revenue from interest be higher than the sum specified in subsection (b), it being linked as stated, the annual amount shall be increased to the amount of the calculated interest or to the total revenue of the Authority from interest, whichever be the lower; for purposes of this section - (1) "Calculated interest" means - the calculated interest accruing from the preceding financial year for permanent assets in use and being established, the interest as stated having been adjusted to the date of the accounting for the previous financial year, prior to the deduction of depreciation costs; (2) "Authority's revenue from interest" means - the total amount of interest revenue, with the exception of interest accruing to pension funds, that the Authority actually received during the preceding financial year, that amount having been adjusted to the date of accounting for the previous year; (3) For purposes of calculation according to this subsection, the amounts of calculated interest and the Authority's revenue from interest shall be linked to the index, calculated by the increase between the most recently published consumer the price index and the index of date of the accounting in the previous financial year.

7 SeferHa-Chukkim 5737, p.; L.S.I, vol 31, p. 228; 5745, p. 60, L.S.I.

71 (d) The Minister and the Minister of Finance, after consultation with the Authority and with the approval of the Knesset Finance Committee may, by order, alter the sum of the annual payment.

Amendment 9. In section 2 of the Commodities and Services (Stability of Prices)(Temporary of Commodities 8 and Services Provision) Law, 5746-1985 , the words "until the 13th Nissan 5748 (31st March (Stability of 1988) " shall be replaced by the words "until the 24th Adar Bet 5749 (31s March Prices) Law 1989) ".

Amendment 10. In section 1271111 of the National Insurance Law [Consolidated Version], of the National 5728-19689- Insurance Law (1) In subsection (a), the closing passage shall be concluded with the words "For the financial years 1988,1989 and 1990 the institution shall allocate a total amount of 5 million New Israeli Shekels for the Ministry of Labor and Welfare, as participation in the provision of personal treatment and assistance in the domestic care; the said amount shall be deducted from the amounts allocated to the Institution under section 127SSSS(b)"; (2) In subsection (c), the words "for the financial years 1986 and 1987" shall be replaced by "for each of the financial years as stated in subsection (a)".

Port 11. (a) For each of the financial years 1988,1989 and 1990 the Ports Authority Authority's shall pay the State Treasury the amount of 240 million New Israeli Shekels. payment to State (b) The amount paid to the State under this section shall go towards the reduction of its debts.

Commencement 12. This Law shall come into force on the 14th Nissan 5748 (1st April 1988).

Publication 13. This Law shall be published in Reshumot within thirty days of its adoption in the Knesset.

YITZCHAK SHAMIR GIDEON PATT Prime Minister Minister of Science CHAIM HERZOG and Development President of State

Sefer Ha-Chukkim 5746, p. 2; L.S.I, vol 40, p. 3. 9 SeferHa-Chukkim 5728, p. 109; L.S.I, vol 22, p. 103. (No.36) LOANS (VOLUNTARY EXTENSION) LAW, 5748-1988*

1. In this Law - Definitions "loan" - a compulsory loan according to the Defence Loan Law, 5732-1972' (hereinafter - the Defence Loan Law), or a compulsory loan or a voluntary loan according to the War Loan Law, 5734-19732, (hereinafter - the War Loan Law), for which the original time of payment was during the financial year of 1988: "original time of payment" - for the purposes of the Defence Loan Law - the time of payment as determined by the Defence Loan Law; for the purposes of the War Loan Law - the time of payment as determined in the War Loan Law; "the time of payment of the new loan" - the day relating to the period specified in section 2.

2. A person entitled to the repayment of a loan and refrained from demanding its New Loan repayment of period of 54 months after the original time of payment, shall be considered as a person to whom the loan was paid after which he loaned the amounts expected from the repayment of the loan certificate including the sums of interest accruing thereto, (hereinafter - the sum of the new loan), for the period as stated, and the loan certificate in his possession shall be considered as if issued for the new loan.

3. (a) The sum of the new loan shall bear annual interest at the rate of 3% as of Interest and - on״the original time of payment until the time of repayment of the new loan; the tax exemP interest shall be paid at the time of the repayment of the new loan. (b) The interest shall be exempt from income tax.

4. (a) The sum of the new loan and the interest accruing thereto, shall be linked index linked to the consumer price index; if at the time of repayment of the new loan it emerges loan that the new index exceeds the basic index, the principal of the loan and the interest thereof shall be repaid having been increased at the rate of the increase of the new index as opposed to the basic index. (b) In this section - "Consumer price index" or "index" - the consumer price index (including fruit and vegetables) as determined by the Central Bureau of Statistics, even if published by another governmental institution, including any other official index that may replace it, whether it be based upon the same data upon which the existing index is based or not;

Passed by the Knesset on 4th Nissan 5748 (22rd March 1988) and published in SeferHa-Chukkim No. 1248 of 30th Nissan 5748 (17th April 1988) p. 72; the Bill and an Explanatory Note were published in Hatza'ot ChoJt 1876, of 5745, p. 152. Sefer Ha-Chukkim 5732, p. 56; L.S.I, vol 26, p. 62. Sefer Ha-Chukkim 5734, p. 3; L.S.I, vol 28, p. 3.

73 should another index replace the existing one, the Central Bureau of Statistics shall determine the relationship between it and the replaced index; "the basic index" - the index as published on the 15th May 1988; The index most recently published prior to the time of ־ "the new index" the repayment of the new loan.

Loan 5. Loan certificates shall continue to be not-negotiable, nor shall they serve as a Certificate security or transfer with the exception of their legally authorized transfer, unless the Minister of Finance specified in regulations, with the approval of the Finance Committee of the Knesset, that the certificates were negotiable or given to servitude, under the conditions he determined.

Repayment 6. Where a person refrained from demanding the repayment of the loan at the prior to date original time of the repayment and demanded its payment prior to the time of the ׳ of payment repayment of the new loan, the repayment shall be subject to the provisions of section 1 of the Loans Law (Temporary provisions). 5738-19783.

Payment to 7. Upon the death of a single person, payment shall be made to his spouse, and in heirs the absence of a spouse - his other heirs.

Limitation to 8. This Law shall not apply to a person to whom the loan was repaid prior to the application coming into force of this Law.

Amendment 9. In the First Schedule of the Loan (Miscellaneous Provisions) Law, 5738-1977, of Loans (Miscellaneous the words Loan (Cost of Living Increase Increment), 5735-1975 shall be replaced provisions) by "Loan (Voluntary Extension) Law, 5748-1988". Law

Untimely 10. The provisions of section 1 of the Loans (Miscellaneous Payments) Law, repayment of new loan 5738-1978 shall apply to a new loan according to this Law. Implementation 11. The Minister of Finance is charged with the implementation of this Law, and and regulations he may make regulations in all matters pertaining to its implementation.

Commencement 12. This Law shall come into force on the day of its passage in the Knesset.

Publication 13. This Law shall be published in Reshumot within thirty days of its being adopted.

YITZCHAK SHAMIR GIDEON PATT Prime Minister Minister of Science CHAIM HERZOG and Development President of State

3 Sefer Ha-Chukkim 5738, p. 18; L.S.I, vol 26, p. 18. (No.37)

OPERATION PEACE-FOR-GALILEE (FINANCING) (AMENDMENT) LAW, 5748-1988*

hereinafter Amendment) 5742-1982׳ (In the Operation Peace-for-Galilee (Financing Law .1 - the principal Law), section 11 shall be followed by: of Section 11 "(16) "Fiscal Year" - a period of twelve months commencing on 1 April in each year."

2. Section 19 of the principal Law shall be followed by the following Addition of sections: Sections 19A and 19B

19A (a) Where the holder of the loan has died, the loan shall be repaid in one "Early payment to his spouse, and where he did not leave a spouse — to his other heirs, repayment to Heirs within three months of the date on which the spouse or heirs, as appropriate, submitted a request to do so. (b) The repayment of the loan under subsection (a) to the spouse of the holder of the loan or to an heir who has reached the age of 65 years, shall be made in accordance with section 18, where for the purposes of calculation of linkage the provisions of paragraphs (3) and (4) of subsection (c) below shall apply, and for the purposes of calculation of interest under section 18(2) the calculation shall be made up to the last day of the month prior to the month in which the new index was published. (c) The repayment of a loan under subsection (a) to a person who is not the spouse of the holder of the loan and is not an heir who has reached the age of 65 years shall be made according to the value of the loan at the early repayment date; for this purpose, "the value of the loan at the early repayment date" is - the loan with the addition of interest under section 18(2) up to the end of the uniform period of the loan with the deduction of a rate of compound interest that shall be calculated on an annual basis, which in the opinion of the Minster of Finance, reflects the benefit arising from advancement of the date of repayment, from the uniform date of repayment to the early date of repayment, the whole being subject to the addition of linkage in accordance with section 18; for this purpose —

(1) "the standard date of repayment" - 30 Nissan 5755 (30 April 1995); however, in respect of early repayment made after 9 Iyar 5753 (30 April 1993) the Minister of Finance shall fix by regulations one or more other standard dates for various fixed periods, based on the

* Passed by the Knesset on 4th Nissan 5748 (22rd March 1988) and published in SeferHa-Hukkim No. 1248 of 30th Nissan 5748 (17th April 1988) p. 76; the Bill and an Explanatory Note were published in Hatza'otChok 1876, of 5748, p. 154. 1 Sefer Ha-Chukkim 5742, p. 180; L.S.I, vol 36, p. 186.

75 average of final dates of repayment, in accordance with section 17, which have not passed at the time of the early repayment; (2) "deduction" -- (a) Where the period of the deduction or part of it is shorter than a year, the deduction shall be calculated in respect of that period according to the number of whole calendar months relative to the number of months in the year; . (b) Where the early repayment was carried out on one of the days from the 1st day of the month through the 17th day of the month, the deduction shall be calculated up to the end of the month preceding the month in which the repayment date falls; where the early repayment is made on one of the other days of the month, the deduction shall be calculated up to the end of the month in which the repayment was made; (3) The definition of "new index" in section 11 shall be read as if - (a) in respect of a repayment made on the 15th, 16th or 17th of the month, in place of the end of the sentence beginning with the words "and for the purposes of the fiscal year", it states "and in respect of the fiscal year in which the early repayment date of the loan occurs - the index published in the month preceding the month in which the early repayment date occurs"; (b) in respect of a repayment made on one of the other days of the month, in place of the said end of the sentence, it states "and in respect of the fiscal year in which the early repayment date of the loan occurs - the index last published prior to the early repayment date"; (4) The definition of "new representative rate" in section 11 shall be read thus: "(a) In respect of a payment made on one of the days between the 1st and 17th of the month -- the average of the representative rates published by the Bank of Israel in the month preceding by two months the month in which the early repayment date occurs. (b) In respect of a payment made on one of the other days of the month -- the average of the representative rates published by the Bank of Israel in the month preceding the month in which the early repayment date occurs." (d) The Minister of Finance shall fix in the regulations the rate of !pound interest as stated in subsection (c). (e) The Minister of Finance is entitled to determine in the regulations that at the time of the early repayment, part of the loan shall be converted into a tax and is entitled to determine additional provisions and conditions in respect of early repayment under this section. Early 19B. Where the Minister of Finance or a person so authorized by Repayment determines that a person who subscribed to the loan is an to an Invali d mm r invalid whose level of invalidity has been determined by law to be 40% or higher and that he is in financial distress, or the spouse or parent of an invalid as stated, he may direct that the loan be repaid prior to its repayment date; in the case of an early repayment under this section the linkage and interest shall be calculated in accordance with section 19A(b)."

3. Section 1 shall come into force on 30 Kislev 5747 (1 January 1987); the Commencement commencement of Section 2 shall be on 14 lyar 5748 (1 May 1988).

4. This Law shall be published in Reshumot within thirty days of its Publication adoption.

YITZCHAK SHAMIR GIDEON PATT Prime Minister Minister of Science CHAIM HERZOG and Development President of State

77 (No.38) DISCHARGED SOLDIERS (ADJUSTMENT GRANT) LAW 5748-1988*

Entitlement 1. Every soldier discharged from regular service under the Defense Service Law for a period of more than six consecutive ,5746-1986׳ [Consolidated Version] months, shall be entitled to a grant under this Law from the State: for this purpose regular service shall be considered as any service under terms of payment which are not those of permanent service, and the completion of service as stated shall be considered as discharge; for the purpose of this Law, a period which under section 18 of the said Law is not deemed as one in which the soldier has carried out his duties of regular service shall not be taken into account in calculation of his service, however, it shall not be seen as interrupting the consecutivity of his service.

Amount 2. The grant shall be paid in three equal sums of 900 New Shekels each - (1) On 1st October following the discharge; (2) On 1st October of the next year: (3) On 1st October of the next year: provided that a soldier who served less than three years shall be entitled to one third of each of the installments of the grant for each period of a year which he served, and for this purpose a single period of six months or more shall be rounded off upwards.

Linkage 3. Each sum of the grant payable in accordance with section 2 shall be changed in accordance with the change of the Consumer Price Index from the index published by the Central Bureau for Statistics for the month of February 1988 to the index last published prior to the payment of that sum.

Saving of 4. The grant under this Law shall be in addition to any other grant payable to a Laws discharged soldier under the Law or under military orders.

Implementation 5. The Minister of Finance is charged with the implementation of this Law and and may make regulations in respect of any matter relating to its implementation. Regulations Application 6. This Law shall apply to any person discharged after 13th Nissan 5748 (31st March 1988).

Passed by the Knesset on 4th Nissan 5748 (22rd March 1988) and published in Sefer Ha-Chukkim No. 1249 of 3rd Iyar 5748 (20th April 1988) p. 80; the Bill and an Explanatory Note were published in Hatza'ot Chok 5747, p. 320; section 6 was replaced by section 9 of the Budget Law for fiscal Year 1988, 5748-1988. 1 Sefer Ha-Chukkim 5746, p. 107; L.S.I, vol 40, p. 112.

78 7. This Xaw shall be published in Reshumot within thirty days of the day it is Publication passed.

YITZCHAK SHAMIR GIDEON PATT Prime Minister Minister of Science CHAIM HERZOG and Development President of State Acting Minister of Finance

79 (No.39) CONSUMER PROTECTION (AMENDMENT) LAW, 5748-1988*

hereinafter - the principal) ,5748-1988׳ ,Amendment 1. In the Consumer Protection Law of section 2 Law) - (1) Subsection (a)(4) shall be replaced by the following: "(4) the use that can be made of the commodity or the service, the benefit that can be derived therefrom and the dangers involved therein (2) In subsection (a)(6) the word "producer" shall by followed be the word "importer"; (3) Subsection (a)( 14) shall be replaced as follows: "a professional opinion or the results of an examination as to the type of commodity or the service, their nature, the results of their use and the dangers involved in their usage; (4) Subsection (b) shall be followed by the following subsection: "(c) The provisions of this section shall also apply to advertising; Replacement 2. Section 3 of the principal Law shall be replaced by the following section; of section 3

Exploiting 3. (a) A dealer shall do nothing - whether by act or omission, in writing or consumer's distress orally or in any other manner - that constitutes exploitation of a consumer's distress, prohibited ignorance, or the exertion of undue influence upon him, all in order to conclude a transaction under unacceptable or unreasonable conditions, or to obtain consideration exceeding the normal consideration. Amendment 3. Section 4 of the principal Law shall be indicated as 4(a) and shall be followed of section 4 by: "(b) The provisions of subsection (a) shall also apply to services. Replacement 4. Section 5 of the principal Law shall be replaced by the following section: of section 5

Written (a) Where the Minister has reason to believe that it is necessary in order to Agreement and submission prevent the consumer's being mislead or the exploitation of his distress, he may, by regulations, prescribe types of occupations or services regarding which the dealer

Passed by the Knesset on 16th Iyaar, 5748 (4th May 1988) and published in Serer Ha-Chukkim No. 1250 of the 4th Sivan 5748 (20th May, 1988) p. 82; the Bill and an Explanatory Note were published in tfatza'ot Chok No. 1774,5746, p. 177. SeferHa-Chukkim51A\, p.248; L.S.I. Vol 35, p. 298.

80 must draw up a written contract with the consumer, indicating therein the details specified in the regulations. (b) A dealer, about to sign a contract with a consumer must give him a reasonable opportunity to examine the contract prior to his signing it, and must also submit him with a copy of it after its signing.

5. In section 7 of the principal Law - Amendment of section 7 (1) In subsection (b), the words "an examination carried out thereon" shall be followed by the words "or regarding the expected results of the use thereof. (2) Subsection (c) shall be replaced by the following subsection: "(c) An advertisement liable to lead a reasonable person to believe that the contents thereof are not an advertisement, shall be regarded as a misleading advertisement, even if its contents are not misleading. (3) Subsection (d) shall be remarked as subsection (e) and shall be preceded by the following subsection; "(d) An advertisement shall be presumed to have been placed by the person indicated as the proponent of the commodity or service, unless indicated otherwise in the advertisement itself.

6. Section 7 of the principal Law shall be followed by the following section: Addition of section 7A

"Advertisement 7A. The Minister may determine by regulations, with the directed at approval of the Economic Committee of the Knesset, principles, minors rules and conditions regulating advertisements directed at minors, including the prohibition of advertising liable to mislead a minor, take advantage of his age, his innocence or lack of experience, or that encourages activities liable to harm his body or his physical or mental health; regulations as stated may relate to minors in general or to a particular age;

7. In section 8 of the principal Law - Amendment of section 8 (1) In the definition of "credit price" the words "that it is not paid" shall be followed by the words "in its entirety"; (2) The definition of "peddling" shall be replaced as follows: "peddling" means the offer of a transaction to a consumer by a dealer who, otherwise than by invitation of the consumer comes to the place of the consumer's residence, his military service, his work, studies or nearby them.

81 Amendment 8. In section 13(b) of the principal Law, the words " in any of the transactions of section 13 designated by order under subsection (a)" shall be deleted. Amendment 9. In section 14 of the principal Law, subsection (d) shall be remarked as of section 14 subsection (e) and shall be preceded by the following subsection; "(d) The Minister may prescribe by order, with the approval of the Economic Committee of the Knesset, details that the peddler must submit to the consumer; Amendment 10. In section 28 of the principal Law, subsection (d) shall be remarked as of section 28 paragraph (1) and shall be followed by - (2) A variation of the amount in accordance with changes in the most recently published consumer price index shall not require the approval of the Economic Committee of the Knesset, but the increase in the amount according to this paragraph shall not take prior to the passage of three months since the date of the previous increase. (3) In this subsection "index" means the consumer price index published by the Central Bureau of Statistics. Amendment 11. In section 31 of the principal Law, subsection (b) shall be remarked as, of section 31 paragraph (1) and shall be followed by - (2) A variation of the amount in accordance with changes in the most recently published consumer price index shall not require the approval of the Economic Committee of the Knesset, but the increase in the amount according to this paragraph shall not take place prior to the passage of 3 months since the date previous increase. (3) In this subsection "index" means the consumer price index published by the Central Bureau of Statistics. Amendment 12. In section 32 of the principal Law, in subsection (a) the words "within two of section 32 weeks from the day of the sale" shall be replaced by "within two weeks from the day of the conclusion of the transaction, or from the day of the delivery of the commodity sold, whichever the later." Publication 13. This Law shall be published within 30 days of its passage.

YITZCHAK SHAMIR ARIEL SHARON Prime Minister Minister of Industry CHAIM HERZOG and Trade President of State (No.40) LOCAL AUTHORITIES (ELECTION AND TENURE OF HEAD AND DEPUTY 5748-1988״ ,HEADS) (AMENDMENT NO. 6) LAW

1. After Section 27 of the Local Authorities Law (Election and Tenure of Head Addition and Deputy Heads), 5735-1975 \ shall come: of Section 27A "Outgoing 27A. (a) In this section - Head of Authority "Outgoing Head of Authority" means one of the following: (1) a head of an authority who holds office under section 27; (2) a head of an authority who was not nominated as a candidate for head of the authority under section 5 - from the last day for submission of lists of candidates; (3) a head of an authority who was nominated as a candidate for head of authority under section 5, who was not elected under section 9(a) and was not one of the two candidates who received the highest number of valid votes cast - from the day following the election; (4) a head of an authority as stated in paragraph (3) who was one of the two candidates in return elections and was ,not elected at the return elections - from the day following the return elections. "Contract" - a,contract under section 195 of the Municipalities Ordinance2 (hereinafter - the Ordinance), drawn up without a decision of the Council or by a decision of the Council adopted after the head of the authority became an outgoing head of the authority. (b) An outgoing head of authority shall not be entitled - (1) to appoint employees under section 170 of the Ordinance; (2) to dismiss employees under section 171a (2) of the Ordinance; (3) to promote employees;

Passed by the Knesset on the 7th Sivan, 5748 (23 may, 1988) and published in Sefer Ha-Chukkim No. 1251 of the 16th Sivan, 5748 (1st June, 1988) p. 86; the Bill and an Explanatory note were published in Haua'ot Chok 1850, 5748. p. 6. Sefer Ha-Chukkim 5735, p. 211; L.S.I, vol. 29. p. 278; 5736, p. 151; L.S.I, vol. 30, p. 278; 5738, p. 137; L.S.I. vol. 32 p. 127; 5740, p. 160; L.S.I, vol. 34, p. 178; 5743, p. 142, L.S.I, vol 37, p. 166; 5744, p. 6, L.S.I. vol 38, p. 11. Dinei Medinat Yisrael N.V. 8, p. 197, L.S.I. New Version (not published).

83 (4) to sign on promissory notes under section 199 of the Ordinance or payment documents under section 191 of the Ordinance in a sum exceeding one twelfth part of the ordinary budget, for each month of service as an outgoing head of authority, with the exception of: (a) payment of salaries and repayment of loans; (b) notes and payment documents arising from obligations lawfully undertaken prior to his becoming an outgoing head of authority. (5) The new head of the authority is entitled, within thirty days of commencing his term of office, to request that the minister revoke a contract that the outgoing head of the authority has entered into; where the Minister has revoked the contract - the provisions of the Contracts Law (Remedies for Breach of Contract), 5731-19703, shall not apply, with the exception of the provisions of section 9. (c) Where an outgoing head of an authority has acted contrary to the provisions of subsection (b), the appointment of an employee, dismissal of an employee or his promotion, as stated in paragraphs (1) through (3), shall not be valid, and any payment as stated in paragraph (4) shall be deemed illegal and the provisions of section 221 of the Ordinance shall apply. (d) The Minister for the Interior is entitled to adjust the provisions of orders under the Local Councils Ordinance on the basis of that stated in this Section."

YITZCHAK SHAMIR Prime Minister and CHAIM HERZOG Minister of the President of State Interior (No. 41) LOCAL AUTHORITIES (CONFIRMATION AND PUBLICATION OF BY• LAWS) LAW, 5748-1988*

1. In the Municipalities Ordinance - 1 Amendment of the (1) Section 258 shall be replaced by the following section: Municipalities Ordinance

Approval 258. (a) Where the Council has approved a by-law, the mayor of and shall sign it and the by-law shall be published in Reshumot. publication of by-laws (b) A by-law as stated in subsection (a) shall only be published after the passage of sixty days from the day that the Mayor has brought the by-law to the notice of the Minister; where the Minister or a person authorized by him has notified that he has no objection to the by-law, the by-law shall be published even prior to the expiry of this period. (c) The Minister is entitled, within the period stated in subsection (b) to direct that publication of the by-law shall be delayed provided that he shall not so decide until the Minister or a person authorized by him for this purpose has detailed his reservations and given the Mayor or a person authorized by him an opportunity to present his arguments against the delay in publishing the by-law. (d) Where the Minister has delayed the publication of a by-law as stated in subsection (c), he is entitled to do one of the following: (1) to direct that the delay be cancelled; (2) to reject the by-law for reasons that he shall detail; (3) to return the by-law with his comments to the Council for a review; (e) Where the Minister has cancelled his directive to delay the publication of a by-law, the by-law shall be published in Reshumot." (2) Subsection 262 (b) shall be replaced by the following subsection:

Passed by the Knesset on 7 Si van 5748 (23 May 1988) and published in Sefer Ha- Chukkim No. 1251 of 16th Sivan, 5748 (1st June, 1988) p. 87; the Bill and an Explanatory Note were published in Hatza'ot Chok 1873, 5748, p. 13. Dinei Medinat Yisrael, New Version 8, p. 197; L.S.I. New Version

85 "(b) Where a council has decided to adopt a by-law, it shall give notice of same to the Minister and notice of the adoption shall be published in Reshumot.

Amendment 2. Section 22 of the Local Councils Ordinance 1 shall be replaced by the of the Local Councils following section: Ordinance "Approval 22. (a) Where the Council has approved a by-law, the head of and the Council shall sign it and the by-law shall be published in Publication of by-laws Reshumot. (b) A by-law as stated in subsection (a) shall only be published after the passage of sixty days from the day that the head of the Council has brought the by-law to the notice of the Minister; where the Minister or a person authorized by him has notified that he has no objection to the by-law, the by-law shall be published even prior to the expiry of this period. (c) The Minister is entitled within the period stated in subsection (b) to direct that publication of the by-law shall be delayed provided that he shall not so decide until the Minister or a person authorized by him for this purpose has detailed his reservations and given the head of the Council or a person authorized by him an opportunity to present his arguments against the delay in publishing the by-law. (d) Where the Minister has delayed the publication of a by-law as stated in subsection (c), he is entitled to do one of the following: (1) to direct that the delay be cancelled; (2) to reject the by-law for reasons that he shall detail; (3) to return the by-law with" his comments to the Council for a review; (e) Where the Minister has cancelled his directive to delay the publication of a by-law, the by-law shall be published in Reshumot."

Dinei Medinat Yisrael. New Version 9, p. 256.; L.S.I. New Version (not published)

86 3. Where a by-law was issued by a council and submitted for the approval of the Transitional Minister of the Interior prior to the commencement of this Law (hereinafter - the Provisions Law), it shall be subject to the provisions of the Law and the date of commencement of the Law shall be deemed to be the date on which the by-law was brought to the notice of the Minister.

YITZCHAK SHAMIR Prime Minister CHAIM HERZOG President of State

87 (No. 42) DRUG CONTROL AUTHORITY LAW, 5748-1988*

Chapter One: Interpretation

Definitions. 1. In this Law -- "the Minister" means the Prime Minister; "drugs" means dangerous drugs as defined in the Dangerous Drugs Ordinance (New and drugs designated by the Minister by health regulations ,5733-1973׳ ,(Version after consultations with the Minister of Health and with the approval of the Labour and Social Affairs Committee of the Knesset; "drug abuse" includes the doing of anything connected with drugs otherwise than for medical purposes or without legal authorization.

Chapter Two: The Authority

Establishment 2. The Drug Control Authority is hereby established (hereinafter referred to as of Authority. "the Authority").

Authority 3. The Authority shall be a body corporate. to be body corporate. Authority 4. The Authority shall be an inspected body within the meaning of section 9(6) to be 2 inspected body. of the State Comptroller Law (Consolidated Version), 5918-1958 . Functions 5. (a) The Authority shall determine policy as to prevention, treatment, of Authority. rehabilitation, punishment and law enforcement in the field of drug abuse in order that such policy may serve as a basis for its activity and the activity of the Government in the matter. When the Authority has framed a policy as to one of the matters within the scope of its functions, the Minister shall, at its request, submit such policy to the Government for approval. (b) Without prejudice to the generality of the provisions of subsection (a), the Authority shall also - (1) frame a policy of cooperation between Government Ministries, local authorities and other bodies active in the field of drug abuse, and coordinate and promote such cooperation; (2) plan and promote, in accordance with its policy, frameworks and services for prevention, treatment, rehabilitation, punishment and law enforcement in the field of drug abuse;

Passed by the Knesset on the 29th of Sivan, 5748 (14th June 1988) and published in Sefer Ha-Chukkim No. 1252 of the 8th Tammuz, 5748 (23rd June 1988), p. 90; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1875 of 5748, p. 144. Dinei Medinat Yisrael (Nusah Hadash), No. 27, p. 526 - - NV vol. Ill, p. 5. Sefer Ha-Chukkim of 5718, p. 96 - LSI vol. XII, p. 107.

88 (3) act, in schools and other frameworks, for the prevention of drug abuse by expanding and deepening the education of pupils and youth; (4) spread information and deepen public awareness as to the plague of drugs with a view to preventing drug abuse; (5) in accordance with its policy and in cooperation with the Ministries concerned, act for the establishment, development, management and maintenance of suitable frameworks, and of services and projects, for prevention, treatment, rehabilitation, punishment and law enforcement in the field of drug abuse; (6) assist state and local government services by advice and guidance as to the treatment of drug victims and the members of their families; (7) encourage voluntary activities, of individuals and bodies for the prevention of drug abuse and the treatment and rehabilitation of drug abusers, and direct, guide and supervise such activities; (8) initiate and coordinate the training and accreditation of professional manpower in institutions and services active in drug abuse prevention and in the treatment and rehabilitation of drug abusers and supervise the activities of such institutions and services; (9) follow up, and make suggestions as to, law enforcement and punishment in the field of drug abuse; (10) prescribe rules for appropriations from its budget to bodies active in drug abuse prevention and in the treatment and rehabilitation of drug abusers, and to effect such appropriations; (11) collect information, initiate research and develop know-how in the sphere of its activity, subject to the provisions of any law; (12) maintain contact with national and international bodies active in matters of drug abuse.

Article Two: Council of Authority

6. (a) The Authority shall have a Council of forty-three members appointed by Council of Authority the Minister with the approval of the Government. Notice of the appointment shall be published in Reshumot. (b) The Council shall consist of the following: (1) sixteen office-holders as specified in the Schedule; (2) one representative each of the Prime Minister's Office, the Ministry of the Interior, the Ministry of Justice, the , the Ministry of Construction and Housing and the Ministry of Defence;

89 (3) one representative each of the National Insurance Institute, the Employment Service, the Prisoner Rehabilitation Authority, the Council for Higher Education, the Israel Medical Association, the Psychologists' Association; the Social Workers' Organization; the Nurses' Association; the Israel Criminological Society; the Local Government Centre; the Youth Movements Council; the National Council for Research and Development; the Teachers' Association and the Post-Elementary Teachers' Organization;

(4) three members appointed respectively by the Minister in consultation with the Minister of Health, from the movements, from voluntary bodies treating drug users and from the sick-funds. (5) four representatives of the public designated by the Minister. (c) At the request of the Minister, the Council may invite an additional office-holder to its deliberations as a permanent participant. (d) The Minister may by order, after consultation with the Minister concerned, prescribe that, instead of one of the office-holders mentioned in the Schedule, another office-holder from the same Ministry concerned with drug control shall be designated.

Chairman 7. The Minister shall appoint a chairman for the Council from among its members and may so appoint a deputy chairman. Period of 8. The period of tenure of the members of the Council appointed under section 6 tenure. (b)(2) to (5) shall be three years. A member whose period of tenure has expired may be reappointed. A member whose period of tenure has expired shall continue to serve until another member is appointed in his stead or until he is reappointed, as the case may be. ״ Removal of 9. The Minister may remove a member of the Council from office if member from office. (1) he has been convicted of an offence involving moral turpitude or (2) he is incapable of carrying out his functions for reasons of health or (3) he has been absent from four consecutive meetings of the Council without just cause. Replacement 10. Where a member of the Council ceases to hold the position by virtue of of members. which he has been appointed, or has resigned from the Council or been removed from office or has died, another member shall be appointed in his stead in the same manner in which he himself was appointed.

90 11. The Council shall — Functions of Council. (1) determine the policy of the Authority; (2) guide the Board in the discharge of its functions and supervise its activities; (3) consider the draft annual budget referred to in section 18, the annual report and any other matter relating to the activities of the Authority.

12. The Council may appoint committees from among its members and delegate Committees. its powers to them. 13. (a) The Minister may, in consultation with the Council, by regulations, prescribe provisions as to a quorum, the modes of convening the Council and its committees and the conduct of their meetings, the voting procedure, the powers of the chairman of the Council and the chairman of a committee and the reimbursement of expenses incurred by members of the Council or the Board who are not employees of the Authority or the State in consequence of their attendance at meetings of the Council, the committees or the Board. (b) The Council and its committees shall prescribe the procedure of their business as far as it is not prescribed by regulations under subsection (a). (c) The Council shall meet at least four times a year.

Article Three: The Director of the Authority, the Board and its Functions

14. (a). The Minister shall, in consultation with the Council and with the Director of the Authority; approval of the Government, appoint a Director for the Authority and he may, in the Board. consultation with the Council, appoint a deputy Director. (b) The affairs of the Authority shall be managed by the Board, which shall consist of the Director of the Authority, his deputy, if any, six members appointed respectively from among the employees of the Ministry of Finance, the Ministry of Health, the Ministry of Education and Culture; the Ministry of Police; the Ministry of Justice and the and Social Affairs and representatives of the public appointed by the Minister in consultation with the Council from among the members of the Council who are not State employees. (c) The number of the members of the Board shall not exceed nine.

15. The Board shall -- Functions of Board. (1) ensure the discharge of the functions of the Authority in accordance with the directives of the Council; (2) prepare the annual budget of the Authority and submit it to the Council;

91 (3) submit to the Council an annual report on the activities of the Authority and any such other report on its activities as the Council may request; (4) publish an annual summary of the activities of the Authority; (5) transmit to the Minister, at his request, a report or information on a matter within the scope of its functions and powers; (6) appoint the employees of the Authority, and prescribe their functions and powers, as provided in section 17.

Powers 16. The Board is competent to carry out, in the name of the Authority, any act of Board. required for the discharge of the functions of the Authority under this Law, except acts reserved to the Council by this Law.

Employees 17. (a) The Minister shall, in consultation with the Minister of Finance, of the Authority. prescribe the staff establishment of the Authority. (b) The engagement and appointment of employees of the Authority shall be effected in like manner as those of State employees, with such variations as shall be prescribed by regulations. (c) The remuneration and terms of employment of employees of the Authority, including the Director and his deputy, shall be the same as those of State employees, with such adjustments as the Board may prescribe with the approval of the Minister.

Article Four: Budget and Monies

Budget. 18. (a) The Board shall, for a date prescribed by the Council, prepare a draft annual budget of the Authority and submit it to the Council. Under special circumstances, the Board may submit a budget for a period shorter than a year, as well as a draft additional budget.

(b) The Council shall consider the draft budget and shall transmit it to the Minister with such variations as it may see fit. (c) The budget of the Authority shall require the approval of the Minister.

Financing. 19. The budget of the Authority shall be financed out of the Treasury and out of such grants and contributions as it may receive.

Chapter Three: Activities of Government Ministries and Supervision of Authority

Activities of 20. Government Ministries shall act in cooperation with the Authority in matters Government within its province. Regulations by a Minister in matters pertaining to the functions Ministries. of the Authority shall be made in consultation with the Minister charged with the implementation of this Law.

92 21. (a) The authority shall transmit to the Minister every year a report on its Supervision. activities. It shall also publish an annual summary of its activities. (b) The Authority shall at any time transmit to the Minister, at his request, a report and ongoing or one-time information on any matter pertaining to its functions and powers.

Chapter Four: Miscellaneous Provisions

22. The existence of the Council, its committees or the Board and the validity of Maintenance their decisions shall not be affected by the vacancy of the place, or a defect in the of Powers. appointment of a member.

23. (a) The Director of the Authority or a person empowered by him in that Power to behalf may request of any person engaged — for remuneration or voluntarily — in obtain information; the treatment, withdrawal, cure or rehabilitation of a drug user any information, secrecy. document or report (all hereinafter referred to as "information") required by the Authority for the discharge of its functions. The Minister shall by regulations, with the approval of the Constitution, Legislation and Justice Committee of the Knesset, designate the kind of information that may be requested and the procedure for its transmission, receipt and safekeeping.

(b) A person who receives information under subsection (a) shall keep it secret; he shall not disclose it except as required for the implementation of this Law or in accordance with any Law.

24. The Authority shall have the same status as the State in respect of - Authority to have the same ( 1 ) the payment of taxes, stamp duty, fees, rates, charges and other status as the compulsory payments; State.

(2) the Civil Wrongs (Liability of the State) Law, 5712-1952 3; (3) relief by way of a restraining order.

25. (a) The Director, the Deputy Director and the employees of this Authority Status of (all hereinafter referred to as "the employees of the Authority") shall have the same the Director, Deputy status as State employees for the purposes of the following enactments: Director and employees (1) the Knesset Elections Law (Consolidated Version), 5729-1969 4; of Authority. (2) the State Service (Restrictions on Party - Political Activity and Fundraising) Law, 5719-19595;

(3) the Public Service (Gifts) Law, 5740-1980 6;

3 Sefer Ha-Chukkim of 5712, p. 330; LSI vol. VI, p. 147. 4 Sefer Ha-Chukkim of 5729, p. 103; LSI vol. XXIII, p. 110. 5 Sefer Ha-Chukkim of 5719, p. 190; LSI vol. XIII, p. 203. 6 Sefer Ha-Chukkim of 5740, p. 2; LSI vol. XXXIV, p. 3.

93 (4) the Public Service (Restrictions after Retirement) Law, 5729-19697;

(5) The Evidence Ordinance (New Version), 5731-1971 (6) The Civil Wrongs Ordinance (New Version) 9.

(b) The State Service (Discipline) Law, 5723-1963 10 (hereinafter referred to as "the Discipline Law") shall apply to the employees of the Authority as if they were State employees. For this purpose, every reference in that Law to the Minister shall be deemed to be a reference to the Prime Minister and every reference therein to the Director-General shall be deemed to be a reference to the Director of the Authority.

Saving of 26. The provisions of this Law shall not derogate from any power conferred by powers. any Law. Implementation 27. The Prime Minister is charged with the implementation of this Law and may, and Regulations. with the approval of the Constitution, Legislation and Juridical Committee of the Knesset, make regulations as to any matter relating to its implementation. Addition of 28. The following section shall be inserted after section 65C of the Public Health section 65D to :1940״ ,the Public Ordinance Health "Institutions 65D. (a) The Minister of Health may make regulations Ordinance. for treatment and withdrawal. concerning the duty of registering institutions for treatment and withdrawal, including regulations as to - ( 1 ) the supervision of institutions; (2) the organisation and management of institutions: Provided that regulations concerning the organisation and management of institutions within the spheres of the Ministry of Labour and Social Affairs and the Ministry of the Police, respectively, shall be made in consultation with the Minister of Labour and Social Affairs or the Minister of Police, as the case may be.

(b) In this section, "institution for treatment and withdrawal" means any place in which medical treatment, either physical or mental, is given for the purpose of the withdrawal of dangerous drugs." Commencement. 29. This Law, except section 28, shall come into force upon the expiration of six months from the date of its publication.

SeferHa-Chukkim of 5729, p. 144; LSI vol. XXIII, p. 156. Dinei Medinat Yisrael (Nusah Hadash) No. 18, p. 421 ; NV vol. II, p. 198. DineiMedinat Yisrael (Nusah Hadash) No. 10, p. 266; NV vol. II, p. 5. SeferHa-Chukkim of 1963, p. 50; LSI vol. XVII, p. 58. P.G. of 1940, Suppl. I, p. 239 (English edition).

94 SCHEDULE (Section 6 [b][l]) The following are the office-holders on the Council of the Authority: From the Ministry of Health: the Head of the Mental Health Services; the National Coordinator for Drug and Alcohol Victims; the Director of the Rehabilitation Centre for Drug Victims, designated by the Head of the Mental Health Services; the Director of the Pharmaceutical Department; and the Head of the Public Health Services. From the Ministry of Labour and Social Affairs: the Director of the Youth and Young Persons Department and the Correction Service; the Director of the Department for Social Services; and the Director of the Department for Vocational and Supplementary Vocational Training. From the Ministry of Education and Culture: The Chairman of the Pedagogic Secretariat: the Director of the Youth Department; the Officer in Charge of the Department for Health Education and for the Suppression of Drugs and Alcohol, and the Director of the Information Centre. Other Office-Holders: the Head of the Intelligence Division of the ; the Head of the Prisoners' Administration in the Prison Service; the Surgeon-General of the Israel Defence Forces and the State Attorney.

YITZCHAK SHAMIR Prime Minister CHAIM HERZOG President of State (No. 43) MUNICIPALITIES ORDINANCE (AMENDMENT) (Nc. 34) LAW, 5748- 1988* Amendment 1. In section 249 of the Municipalities Ordinance1, the following paragraph shall of section 249. be inserted after paragraph (13A). (13B) to direct the owner or occupier of business premises or dwelling-houses to take measures for the protection thereof, including installation, control and operation of alarm systems, and, if they constitute a nuisance, the disconnection thereof; directions as aforesaid may relate to particular categories of business premises or buildings or to zones defined by the municipality; a direction accompanied by a specification describing the protective measure shall be deemed to be a building permit under the Planning and Building Law, 5725-19652; directions as aforesaid shall not be issued in respect of a dwelling-house the construction of which was completed before the coming into force of this Law.

YITZCHAK SHAMIR Prime Minister and CHAIM HERZOG Minister of the Interior President of State

Passed by the Knesset on 29 Sivan 5748 (14 June 1988) and published in Sefer Ha-Chukkim No. 1252 of 8 Tammuz 5748 (23 June 1988), p. 95; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1863 of 5748, p. 57. 1 Dinei Medinat Yisrael (Nusah Hadash) ,N0.8, p. 187; NV, Vol. 1; Sefer Ha-Chukkim of 5748, p. 87 - - supra, p. 85. 2 Sefer Ha-Chukkim of 5725, p. 307; L.S.I., Vol. XIX, p. 330.

96- (No. 44) LICENSING OF BUSINESSES (AMENDMENT No. 6) LAW, 5748-1988*

hereinafter Amendment) 5728-1968׳ ,In section 16 of the Licensing of Businesses Law .1 referred to as "the principal Law"), the following paragraph shall be added at the of sectlon 16- end: (3) order that no person shall, on the premises concerned in the action, manage without a license a business requiring a license or transfer the ownership or possession thereof to another unless the other has a proper license to manage it."

YITZCHAK SHAMIR Prime Minister and CHAIM HERZOG Minister of the Interior President of State

Passed by the Knesset on 25 Sivan 5745 (14 June 1988) and published in Sefer Ha-Chukkim No. 1252 of 5 Tammuz 5748 (23 June 1988), p. 96; the Bill and an Explanatory Note were published in tfatza'ot Chok No. 1873 of 5748, p. 136. Sefer Ha-Chukkim of 5728, p. 204, L.S.I., Vol. XXII, p. 232; Sefer Ha-Chukkim No. 5743, p. 43, L.S.I., Vol. XXXVII, p. 48.

97 (No. 45) DEVELOPMENT TOWNS AND DEVELOPMENT ZONES LAW, 5748-1988 *

Purpose . 1. The purpose of this Law is to encourage the settlement, development and of Law social and economic advancement of the development towns and zones and of their residents.

Definitions 2. In this Law - "the Ministers" means the Minister of Finance and the Minister of Economics and Planning; "Ministers Committee" means the Ministers Committee for the advancement of the development towns and zones, as stated in section 4; "resident of a development town" means a person whose only permanent place of residence during the last twelve months prior to receiving to any benefit under this Law, was a development town as defined in section; "border settlement" means a settlement that the Ministers together with the Minister of Defence have declared to be a border settlement for the purposes of this Law; "Income Tax regulations" - Income Tax Regulations according to section 11 of the Income Tax Ordinance'

Town 3. (a) For the purposes of this Law, with the exception of section 7, a development town is a municipal parameter, local council, regional council or a part therof, that the Ministers Committee has declared to be a development town for the purpose of this Law or for any one of its sections, in consideration of: (1) its distance from the population concentrations in the center of the country and the policy of encouraging population circulation; (2) its economic and social solidity and the level of services therein; (3) the security situation in the zone; (b) • The Ministers Committee shall classify the development towns according to two groups "a" and "b" for the purposes of each section of this Law;

(c) The Ministers Committee may cancel or change the classification of a development town. (d) (1) A locality shall not be declared to be a development town unless the locality is included:

Passed by the Knesset on the 29 Siyan, 5748 (14 June, 1988) and published in Sefer Ha-Chukkim No. 1253 of the 8 Tammuz 5748 (23 June, 1988) p.98; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1871,5748, p. 128 1 Dinei Medina! Yisrael N. V 6 p. 120, 5748 p. 20 L.S.I. New Version.

98 (a) On the eve of the passage of this Law, in either a new settlement zone or in a new development zone which has been defined as such in the Income Tax Regulations or; (b) In an order determined by the Ministers in consideration of the conditions specified in paragraph (a). (2) The effective date of the declaration regarding a particular locality, with the exception of a locality specified in the Minister's Order and with the exception of a border settlement, shall be on the effective date of the regulations excluding the locality from the applicability of Income Tax Regulations, or on the expiry date of the Income Tax regulations relating to it;

(3) A locality declared to be a development town under this Law, shall not be included in an zone defined under the Income Tax Regulations; this provision shall not apply to a border settlement. (e) The Ministers Committee may, in consideration of the conditions prescibed in subsection (a), determine that rights under this Law, or any one of its sections, shall also be conferred upon Local Authorities and Israeli citizens who are residents therein, if they are located in zones as defined in section 3 A of the Income ׳ . .[Tax Ordinance [New Version

4. (a) The following shall be the composition of the Ministers Committee for Ministers the advancement of the development towns and zones; Committee (1) The Minister of Finance - Chairman; (2) The Minister of Economics and Planning; (3) The Minister of Energy and Infrastructure; (4) The Minister of Defence; (5) The Minister of Building and Housing; (6) The Minister of Health; (7) The Minister of Education and Culture; (8) The Minister of Agriculture; (9) The Minister of Labor and Welfare; (10) The Minister of the Interior; (11) The Minister of Industry and Trade; (b) The Government is entitled to alter the composition of the Ministers Committee; notification of the change shall be submitted to the Knesset and shall be published in Reshumot.

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 משרד המשפטים (התימה מוסדית). Grants to 5. (a) At the beginning of each budgetary year the Government shall transfer to Local the Local Authority of a development town, a financial grant for an amount Authorities equalling the sum of the grant for undesignated balancing granted to it by the Ministry of the Interior in the 1986 fiscal year, with the addition of half of that sum for a development town classified "A" and a quarter thereof for a development town classified "B". (b) The Minister of Finance, together with the Minister of the Interior, may alter the amount of the grant for the Local Authority, in consideration of the amount budgeted for that purpose in the State Budget.

Reduction 6. A resident of a development town shall not pay the general rate for a building of General serving for residential purposes in the development town, of an amount exceeding Rate two thirds of the amount determined by the Local Authority for the payment of the general rate, as stated; the State shall compensate the Local Authority in accordance with the rules determined by the Ministers.

Investment 7. In furtherance of the promotion and advancement of the development towns Encouragement and the welfare of their residents, the Investment Center established underjhe Encouragement of Capital Investments Law, 5719-1959 2 (hereinafter - the Law) shall give preference to investment programs in the development towns; these investments shall be given grants, concessions and reductions according to the Law, having regard for the portions of the Areas specified therein;

Exemption 8. An employer in a development town who pays work income as defined in the from Employers' Tax Law, 5735-1975 3 for the work of a resident of the development Employers Tax town, shall be exempt from employers's tax, as defined in the said Law, with respect to that income.

Change of 9. (a) A family changing its sole place of permanent residence from a locality residence that is not a development town to a development town, shall receive the following grant loans from the State, all of which shall become grants at the end of three years from the time of the change of residence, provided that the particular development town did not cease being its sole place of permanent residence during that period:

(1) A loan exceeding twice the amount of the transfer incentive to a development town given by way of the Ministry for Labor and Welfare for the 1987 fiscal year; (2) During the first year of its living in the locality - a loan for monthly participation in payments for electricity, water and telephone for the amounts and according to the conditions determined by the Ministers; (3) A family as stated having received a loan for the purchase of an apartment, shall for the first two years of its dwelling in a development

2 Sefer Ha-Chukkim 5719, p. 234, L.S.I. Vol 13 p.258; 5747, p. 142; L.S.I. 3 Sefer Ha-Chukkim 5735, p. 118; L.S.I, vol. 29 p.259; 5740, p. 164; L.S.I, vol. 34 p. 70.

100 town, receive a participatory loan for assistance in repayment of the loan received for the purchase of the apartment, at the amount and under the conditions determined by the Ministers together with the Minister for Building and Housing.

(b) Benefits under this Law shall also be applicable for an individual over the age of 25. (c) The Ministers shall determine the conditions for the repayment of loans, applicable in the case that such loans do not become grants as stated in the opening section of subsection (a).

10. A family or individual above the age of 18, who are the residents of a Residential development town, or who have transferred their permanent place of residence to a Loans development town, shall be entitled to receive a loan for the purpose of purchasing an apartment in the development town ; the Ministers together with the Building and Housing Minister shall determine in regulations the conditions for eligibility under this section and the sum of the loan and the conditions for its repayment, provided that the sum of the loan is at least 50% higher than the sum of residential loans given in a place that is not a development town.

11. A.resident of a development town liable for income tax at a rate not Income Tax exceeding 30% of his chargeable income, shall be exempt from the payment of one concessions half of the sum of the tax for which he is liable.

12. (a) A family of Olim resident in a development town shall, for each of the Grant to families of first two years of its residency therein, receive a participatory grant for expenses Olim incurred in rental, general rate, electricity and water, for an amount and under such conditions as determined by the Ministers; a family of Olim shall he entitled to benefits under this section or under section 9, according to its choice, all without derogating from its rights under this Law. (a) For the purposes of this section - "Oleh" means a person prior to the expiry of three years from the date of his entry into Israel, to whom one of the following applies: (1) He is in possession of an Oleh's certification or a certificate of an Oleh, under the Law of Return, 5710-1950 4; (2) He is entitled to a certificate as stated and is in possession of one of the following; (a) an authorization or permit for permanent residence under the Entry into Israel Law 5, and fulfils the conditions determined by the Ministers;

4 Sefer Ha-Chukkim 5710, p. 159; L.S.I. Vol 2, p. 114; 5730, p. 164; L.S.I, vol. 24, p. 28 5 Sefer Ha-Chukkim 5712, p. 354; L.S.I. Vol 6, p. 159.; 5745, p. 213 L.S.I, vol. 39, p. 242

101 "family of Ohm" means an Oleh together with his partner who is an Oleh or his child who is an Oleh.

Free 13. (a) A resident of a development town shall not pay for education in a Education in kindergarten as defined in the Compulsory Education Law, 5709 -1949 6, provided Kindergartens in the development town. (b) The State shall compensate the institutions managing the kindergartens in the development towns for the free education provided therein, as stated in subsection (a)

Free education 14. (a) A resident ofa development town shall not pay forhis children who are in day-homes in day-homes in a development town. (b) The State shall compensate the institutions managing the day-homes in the development towns for the education provided therein as stated in subsection (a), to the extent that they do not receive compensation from any other source. (c) For the purposes of this Law, "day-homes" - home shall have the meaning ascribed to it in the Homes (Supervision) Law, 5725 -1965 1, intended as a home for children until the age of 4, during the day.

Fee education 15. The education in the primary and secondary schools in the development in schools towns shall be free.

Higher 16. Within the framework of each annual budgetary law the Minister of Finance Education shall fix a budget for residents of the development towns, providing scholarships covering the entire academic fee for residents studying in Institutions of Higher Education as well as in Institutions for Religious Education the majority of whose students have served or are serving in the Israel Defence Force, all in accordance with the rules and conditions as determined by the Ministers together with the Ministerof Education and Culture.

Technical Within the framework of each annual budgetary law, the Minister of Finance Education shall fix a budget providing scholarships for residents of development towns studying for technological professions in schools and institutions of Higher Learning, as well as for granting assistance in laborartories, for the purchase of equipment and supplementary classes in the areas of technological education in the development towns, all in accordance with the rules determined by the Ministers together with the Minister of Education and Culture.

Informal Within the framework of each annual budgetary law, the Minister of Finance Education shall fix a budget for the provision of financial assistance for extracurricular groups for the children and youth of the development towns, including extracurricular groups for sport, culture, skilled work and music, to be provided in centers for

6 SeferHa-Chukkim 5717, p. 87; L.S.I. Vol 26, p. 103. 7 SeferHa-Chukkim 5725, p. 48; L.S.I. Vol 19, p. 44; 5737, p. 26.L.S.I. vol. 31, p. 29

102 culture, sport and youth, and through the agency of the Youth Department of the Ministry of Education and Culture.

19. The department for professional training in the Ministry of Labor and Professional Welfare, shall give preference in the allocation of resources for the professional Training training of the residents of the development towns.

20. In section 8 of the Severance Pay Law, 5723-1963 8 in the second paragraph, Amendment the words "the Labor Affairs Committee of the Knesset" shall be followed by the of Severance Pay Law words "or from a settlement that is not a development town within the meaning of the Development Towns and Areas Law, 5748-1988, to a development town for the purposes of section 9 of the said Law, provided that he has proved that he is a resident as defined in the said Law of the development town".

21. Any determination or benefit under this Law, may be for different amounts Benefits according to or under different conditions regarding a development town "A" and a development classified town "B".

22. The provisions of this Law shall not derograte from any right or benefit Saving of laws given to a development town, to an enterprise therein or to its residents under any% other law. 23. The Ministers together with each Minister within the area of his authority are Implementation and charged with the implementation of this Law and they may make regulations in all regulations matters relating to its implemenation. 24. Sections 12 - 18 shall come into force for the 5749-1989 school year. Commencement

YITZHAK SHAMIR GAD YAAKOBI Prime Minister Econimics and Planning Minister CHAIM HERZOG President of State

MOSHE NISSIM Minister of Finance

8 S iter Ha-Chukkim 5723, p. 136; L.S.I, vol. 17, p. 163; 5737, p. 26; vol. p. 31

103 (No. 46) VICTIMS OF HOSTILE ACTION (PENSIONS) (AMENDMENT NO. 8) LAW, 5748-1988* Amendment 1. In section 1 of the Victims of Hostile Action (Benefits) Law, of section 1 :the principal Law), at its end shall come ־ hereinafter)5730-19701 loss of the ability to engage in normal activity, whether physical or ־ "invalidity" intellectual, or the reduction in such ability, affecting the victim as a result of one of the following that occurred as a result of an enemy-inflicted-injury: (1) illness; (2) aggravation of illness; (3) injury." Amendment 2. In section 3 of the principal Law, at its end shall come: of section 3 "and subject to the provisions of section 12". Amendment 3. In section 4 of the principal Law - of section 4 (1) The words "a degree of invalidity has been determined for the victim as provided in section 5" shall be replaced by the words "a victim who as a result of an enemy inflicted injury has been left with invalidity and whose level of invalidity has been determined as stated in section 5"; (2) After "8" shall come "16" and after "35C" shall come "36B, 37". Amendment 4. In section 5 of the principal Law, subsections (a) through (c) shall be marked of section 5 (b) through (d) respectively, and before them shall come: "(a) A condition for determining the level of invalidity of a victim under this section is a confirmation, as stated in section 12, that the injury that occurred to the victim was an enemy inflicted injury." Amendment 5. In section 7 of the principal Law, in place of "and 32" shall come "32, 32A of section 7 and33A". Repeal of 6. Section 7a of the principal Law is repealed. section 7A

Amendment 7. In section 9(1) of the principal Law, in place of "to 7A shall come "to 7". of section 9 Amendment 8. In section 15 of the principal Law, after "Articles One and Two" shall come of section 15 "with the exception of section 137A".

Passed by the Knesset on 5 Tammuz 5748 (20 June 1988); and published in SeferHa-Chukkim No.1253 of 8th Tammuz, 5748 (23rd June 1988) p.102; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1848, 5747, p. 322. 1 Sefer Ha-Chukkim 5730, p. 126; L.S.I, vol 24, p. 131.; 5742, p. 268 L.S.I, vol.36, p. 296

104 9. A family member of a victim who died prior to the publication of this Law and Applicability who at the time he died was under the age of 14, shall be entitled to a pension under the principal Law from the date of publication of this Law.

YITZCHAK RABIN Minister of Defence YITZCHAK SHAMIR Prime Minister

105 (No. 47) LOCAL AUTHORITIES (PROVISIONS FOR INVALIDS) LAW, 5748-1988* Provisions 1. Adjacent to every junction where pedestrians are entitled to cross the road and for Invalids on Sidewalks at all marked pedestrian crossings, the sidewalk, traffic islands and kerb shall be lowered in such a manner as to provide easy access for wheelchairs to and from the roadway at a gradient that shall not exceed 10%. Passage for 2. (a) No installation shall be erected or placed on a sidewalk, unless space has Wheelchairs been left for the easy passage of a wheelchair. (b) In special circumstances, where the width of the sidewalk at or near a certain place prevents the implementation of the provisions of subsection (a), and the placement of the installation or its erection are necessary for public welfare, the head of the local authority may permit the erection or placement of the installation at variance with that the provisions of subsection (a). Transition 3. Ramps shall be installed as stated in section 1 upon sidewalks, traffic islands Provisions and kerbs existing on the effective date of this Law, within five years from the coming into force of this Law, provided - (1) that they shall be installed at the first opportunity at which an existing sidewalk is being repaired or improved; and (2) each year ramps shall be installed as stated in at least 20% of existing sidewalks, with preference being given to crossings in the vicinity of public buildings. Implementation 4. The Minister of the Interior is charged with the implementation of this Law and Regulations and he may make regulations pertaining to any aspect of its implementation. Commencement 5. This Law shall come into effect upon the expiry of three months from its publication.

YITZCHAK SHAMIR Prime Minister CHAIM HERZOG and Minister of Interior President of State

Passed by the Knesset on the 6th Tammuzv, 5748 (21st June, 1988) and published-in Sefer Ha-ChukkimNo. 1254of the 16th Tammuz 5748 (30th June, 1988) 104; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1874, 5748, p. 142.

106 (No. 48)

EMERGENCY REGULATIONS (COMPULSORY PAYMENTS) (EXTENSION OF VALIDITY) LAW, 5748-1988*

1. The validity of the Emergency Regulations (Compulsory Payments) Extension is hereby extended to 24th Adar B 5749 (1st March 1989). of Validity ,5718-1958׳ ,Law

2. This Law shall come into effect on the 15th Tammuz 5748 (30th June Commencement 1988).

YrrzcHAK SHAMIR Prime Minister CHAIM HERZOG President of State

' Passed by the Knesset on 14th Tammuz 5748 (29th June 1988) and published in Sefer Ha-Chukim No. 1254 of 16th Tammuz, 5748 (30th June 1988) p. 104; the Bill and an Explanatory Note were published in Hatza'ot Chok 1886, 5748, p. 205. 1 Sefer Ha-Chukkim 5724, p. 175; L.S.I, vol.18, p. 173.; 5744, p. 34 and p. 167; L.S.I, vol. 38, p. 41 and 232; 5745, p. 136 L.S.I, vol 39, p.l47;5746, p. 192; L.S.I, vol.40 p.200; 5747, p. 138, L.S.I. vol.41, p. 144.

107 (No. 49) AGRICULTURAL CONTROL AUTHORITY LAW, 5748-1988*

Chapter One: Interpretation 1. In this Law - "Agricultural Board" means any of the following: (1) the Citrus Marketing Board under the Citrus (Control and ,the Citrus Marketing Ordinance ,5708-1948׳ ,Marketing) Ordinance 19472, and the Citrus Control Ordinance 1940 3; (2) the Board under the Vegetable Production and Marketing Board Law, 5719- 19594; (3) the Board under the Egg and Poultry Board (Production and Marketing) Law, 5724-1963 5; (4) the Fruit Board under the Fruit Board (Production and Marketing) Law, 5733- 19736; (5) the Board under the Ornamental Plants Board (Production and Marketing) Law, 5736-19767; "Agricultural Boards Enactments" means the enactments specific in the definition of "Agricultural Board"; "Agriculture Enactments" means the enactments enumerated in the Schedule; "the Director" means the Director-General of the Authority appointed under section 13; "the Authority" means the Agricultural Authority established under this Law; "the Minister" means the Minister of Agriculture.

Passed by the Knesset on 13 Tammuz 5748 (28 June 1988) and published in SeferHa-Chukkim No. 1255 of 22 Tammuz 5748 (2nd July 1988), p. 106; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1862 of 5748, p. 90. 1 r.R.of5708,Suppl.I,p. 15; L.S.I, vol. I,p. 22; SeferHa-Chukkim of 57 W,p. 143; L.S.I, vol. IV p 105. 2 P.G. of 1947, Suppl. I, p. [blank] (English edition); Sefer Ha-Chukkim of 5740, p. 228; L.S.I, vol. XXXIV, p. 263. 3 P.G. of 1940, Suppl. I, p. 224 (English edition); SeferHa-Chukkim of 5714, p. 137; L.S.I., vol. 8, p. 116. 4 Sefer Ha-Chukkim of 5715, p. 22; L.S.I, vol. XIII, p. 245; Sefer Ha-Chukkim of 57'41, p. 178; L.S.I, vol. 35, p. 200. 5 Sefer Ha-Chukkim of 5724, p. 12; L.S.I, vol. 18, p. 10; Sefer Ha-Chukkim of 5741, p. 179; L.S.I. 35, p. 208. 6 Sefer Ha-Chukkim of 5133, p. 310; L.S.I, vol. 27, p. 370; Sefer Ha-Chukkim of 5741, p. 181; L.S.I, vol. 35, p. 211. 7 Sefer Ha-Chukkim of 5736, p. 227; L.S.I, vol. XXX, p. 273; Sefer Ha-Chukkim of 5740, p. 130; L.S.I. vol. XXXIV, p. 267. Chapter Two: The Authority Article A: Establishment of Authority and Application of Control

2. There is hereby established an "Agricultural Control Authority". Establishment of Authority.

3. The Authority is a body corporate. The Authority - a body corporate. 4. The Authority is an inspected body within the meaning of section 9(6) of the The Authority State Comptroller Law (Consolidated Version), 5718-1958'; - an inspected body. 5. The function of the Authority is the exercise of control as to offenses under Function of the Agricultural Boards Enactments and the Agriculture Enactments, subject to the Authority. provision of section 6 (hereinafter referred to as "agricultural control").

6. The Minister shall, by order, in consultation with the Board of the Authority, Application designate the offenses as to which agricultural control shall be exercised and the of control. time of its exercise: Provided that - (1) an order as aforesaid to apply agricultural control as an offense under the Agricultural Boards Enactments - other than those relating to the Citrus Marketing Board - shall only be made after consultation with the Minister of Industry and Commerce; (2) an order as aforesaid to exercise agricultural control as to a particular offense under any enactment shall only be made in consultation with the person in which the power of control as to that offense is vested; (3) agricultural control as aforesaid as to an offense under any of the Agricultural Enactments shall be exercised only after the financing involved, as prescribed by regulations in consultation with the Board of the Authority, has been ensured. (b) Where the Minister has designated an offense by order under subsection (a), agricultural control applicable at the time of the coming into force of the other shall not be exercised by the person in whom the power of control as to that offense was vested immediately before the order came into force.

Article B: The Board of the Authority 7. (a) The Authority shall have a Board of twelve members appointed by the^ Composition Minister, viz. one representative of each of the five Agricultural Boards; two of Board. representatives of the Minister from among the employees of his Ministry; one representative of the Ministry of the Police, one representative of the Ministry of Industry and Commerce and one representative of the Attorney-General, all three of

Sefer Ha-Chukkim 5718, p. 92; L.S.I, vol 12, p. 91; 5744, p. 129, L.S.I, vol. 38. p. 178.

109 them appointed from among State employees; and two representatives of organizations which in the opinion of the Minister of Agriculture are representative agricultural organizations. (b) The Minister shall appoint one of his representatives as chairman of the Board and his other representative as deputy chairman.

No remune• 8. A member of the Board shall receive no remuneration for his services. ration for member of Board.

. Meetings 9. (a) A meeting of the Board shall be held at least once a month. The of Board. Chairman of the Board shall convene the meetings and fix the time, place and agenda subject to provisions of this article.

(b) A majority of the members of the Board, including the chairman or deputy chairman, shall be a quorum at its meetings. Where a meeting is opened with a quorum, its continuation shall be valid with any number of participants: Provided that a decision shall not be adopted, unless at least three members, including the chairman or deputy chairman, are present at the time of its adoption. (c) Decisions of the Board shall be passed by a majority of those taking part in the voting. (d) The Board itself shall prescribe the order of its business and deliberations to the extent that these are not prescribed by or under this Law.

Article C: Functions and Powers of Board

Functions of 11. (a) The Board shall, without prejudice to its other functions -- Board. (1) decide upon the agricultural control policy of the Authority and prepare plans for its implementation; (2) prepare the budget of the Authority; (3) monitor the implementation of the policy, -plans and budget of the Authority; (b) Decisions of the Board under paragraph (1) require the approval of the Ministers: Provided that approval as aforesaid of decisions relating to Agriculture Boards Enactments, other than enactments concerning the Citrus Marketing Board, shall be made only after consultation with the Minister of Industry and Commerce. 12; (a) The Minister may request of the Board a report, as well as recurrent or one- time information, as to any matter within the scope of its functions and power. The Board shall submit to the Minister any report requested by him within thirty days from the date of the request.

110 (b) The power vested in the Minister by subsection (a) shall vest also in the Minister of Industry and Commerce as to any matter relating to the Agricultural Board, except in the Citrus Marketing Board.

Article D: Director and Employees of the Authority.

13. The Board shall, with the approval of the Minister, appoint a Director- Director of •y,״General for the Authority and prescribe his functions, remuneration and terms of Autho employment. Notice of the appointment shall be published in Reshumot.

14. (a) The Director shall manage the affairs of the Authority within the Functions framework of its policy, plans and budget, as the Board may prescribe and shall be ^ oSor responsible for the Board for the carrying out of its functions within the framework of its powers. (b) The Board may request of the Director reports on the activities of the Authority and may consider such reports and draw its conclusions. Where the Board requests such a report, the Director shall submit it within thirty days from the date of the request.

15. (a) The procedure for the engagement and appointment of employees of Engagement the Authority shall be the same as that regarding the engagement and appointment of employees of Authority. of State employees with such variations as shall be prescribed by regulations. (b) The establishment, remuneration and terms of employment of the employees of the Authority shall be the same as those of State employees with such adjustments as the Board of the Authority shall prescribe with the approval of the Minister.

Article E: Budget and Monies

16. (a) The budgetary expenditure to finance agricultural control shall be Budget of covered as follows: Authority. (1) in respect of the Agricultural Boards Enactments — by the Agricultural Boards; (2) in respect of the Agricultural Enactments - as may be prescribed by regulations under section 6(3). (b) ' For the purposes of subsection (a)(1), the Minister shall prescribe by regulations the share of each Agricultural Board in the budget of the Authority, as well as the installment, and times for its transfer to the Authority.

17. The Board shall, once a year, prepare a draft budget of the Authority for Approval the following year and shall submit it for the approval of the Minister at the time of budget. prescribed by regulations.

18. The Board shall, once a year, prepare an annual report in respect of Annual the Authority. report.

Ill (b) The annual report shall be submitted to the Minister not later than the 31st March of every year in respect of the year ending 31 December preceding and shall contain - (1) an annual balance sheet; (2) a report on income and expenditure, including a statement of the purposes for which the surpluses are intended. (3) a survey of the activities of the Authority. (c) A report under subsection (a) shall be submitted to the Economic Committee of the Knesset, and as far as it concerns the Agricultural Boards, except the Citrus Marketing Board, it shall be submitted also to the Minister of Industry and Commerce.

Chapter Three: Powers of Control Appointment 19. (a) The Board shall appoint inspectors from among the employees of the of Controllers. Authority for the purpose of exercising agricultural control. The appointment shall be in writing. (b) Notice of the appointment of inspectors under this section shall be given to the Minister of Police, who may empower them, by general or specific empowerment, to carry out investigations for the purpose of exercising agricultural control. Powers of 20. (a) Where an inspector has reasonable cause to believe that it is necessary inspector. to do so for the purpose of exercising agricultural control, he shall have power - (1) to stop and search any means of transportation; (2) to enter and search any place; however, a place used as a dwelling may only be entered under a search warrant from a competent court, and the provisions of sections 26 to 28 of the Criminal Procedure (Arrest and Searches) Ordinance (New Version), 5729- 19699, shall apply mutatis mutandis to a search under this paragraph; (3) to seize any article if he has reasonable cause to believe that an offense in a matter of agricultural control has been committed in respect thereof; and he may seize packing material or documents likely, in his opinion, to serve as evidence in a proceeding for an offense as aforesaid. (b) For the purposes of this chapter, "article" includes a means of transportation, an animal, meat, a plant and any agricultural produce.

9 Dinei Medinat Yisrael (New Version) , No. 12; N. V. vol. II, p. 30; Sefer Ha-Chukkim of 5740, p. 116; L.S.I. vol. XXXIV, p. 155.

112 (c) An inspector empowered under section 19(b) may examine any person as to an offense in a matter to which agricultural control applies the provisions of sections 2 and 3 of the Criminal Procedure (Evidence) Ordinance10.

21. (a) A person shall deliver to an inspector, at his request, any information, Duly to samples, books and other documents whose delivery may, in the inspector's deliver information opinion, ensure the exercise of agricultural control. Samples requested by an and samples. inspector shall be delivered to him free of charge. (b) Samples delivered under subsection (a) may be examined in a laboratory and be dealt with in any other way.

22. Where an article has been seized under section 20(a)(3), the following Treatment provisions shall apply: of seized articles. (1) The Authority may keep the article until a court or a fines committee within the meaning of the Agricultural Boards Enactments, with which information concerning an offense committed in respect of that article has been committed decides how it shall be disposed of; where information as aforesaid is not filed within sixty days from the date of the seizure, the article shall be returned to the person from whom it was seized; where a doubt arises as to whom it is to be returned, the Authority or the person who claims a right to the article may apply to the Magistrates' Court in whose area of jurisdiction the article was seized, to determine the case;

(2) Where the article has been destroyed or damaged or its value diminished and the court is satisfied that the Authority has been negligent in keeping it, the court may require the Authority to pay compensation of an amount to be prescribed. (3) Where the article is likely to deteriorate unless sold forthwith, either because of its particular nature or for some other reason, the Authority may sell it. The proceeds of the sale shall be deposited in the fund of the Authority and the provisions of paragraph (1) shall apply to it as if they were a seized article; where the person against whom the indictment was filed is acquitted, the value of the article as on the day of its seizure shall be reimbursed to him according to the average price on that day of articles of its kind on the fruit and vegetable wholesale market of Tel Aviv; To that amount, linkage to the index shall be added from the index last published before the date of the actual reimbursement of the proceeds of the sale; for this purpose, "index" means the consumer price index published by the Central Bureau of Statistics;

10 P.O. vol.11, p. 167 (English edition); SeferHa-Chukkim of 5725, p. 53; L.S.I, vol. XIX, p. 51.

113 (4) Notwithstanding the provisions of paragraph (3), where the article delivered is an agricultural crop within the meaning of any of the Agricultural Boards Enactments, the proceeds of the sale shall be deposited in the fund of the Agricultural Board concerned instead of in the fund of the Authority, and the provisions of paragraph (1) applying to the Authority shall apply to the said Agricultural Board; (5) Where the article is a means of transportation, the Magistrates' Court may, on the application of the person claiming a right thereto, release it even before information is filed, and may make the release conditional upon the giving of security.

Chapter Four: Miscellaneous Provisions

Power of 23. Where any power of an inspector has been exercised for the purposes of this inspector for Law, the findings and the investigative material shall be valid for the purposes of the purpose of tax laws. the Income Tax Ordinance1 and the Value Added Tax Laws, 5736-19752, all according to the rules and adjustments prescribed by the Minister of Finance with the consent of the Minister.

Authority to 24. The Authority shall have the status of the State for the purposes of — have the status the (1) the payment of taxes, stamp duty, fees, rates, charges and other State. compulsory payments;

(2) the Civil Wrongs (Liability of the State) Law, 5712-195213; (3) relief by way of prohibitive or mandatory injunction.

Status of 25. (a) The members of the Board of the Authority and the employees of the members of Authority shall have the status of State employees for the purposes of the following Board, and of employees, enactments: of Authority. (1) the Knesset Elections Law (Consolidated Version), 5729-196914; (2) the. State Service (Restriction on Party-Political Activity and Fund-raising) Law, 5719-195915;

(3) The Public Service (Gifts) Law, 5740-198016;

(4) Public Service (Restrictions after Retirement) Law, 5729-196917;

11 DineiMedinat Yisrael (New Version)No. 6, p. 120; NV vol. I, p. 145; SeferHa-Chukkimof 5747, p. 2; L.S.I, vol. XLI, p. . 12 Sefer Ha-Chukkim of 5736, p. 52; L.S.I, vol. XXX, p. 46; Sefer Ha-Chukkim of 5746, p. 246; L.S.I, vol. XLI, p. 285. 13 Sefer Ha-Chukkim of 5712, p. 339; L.S.I, vol. VI, p. 147. 14 Sefer Ha-Chukkim of 5729, p. 103; L.S.I, vol. XXIII, p. 110. 15 Sefer Ha-Chukkim of 5719, p. 190; L.S.I, vol. XIII, p. 103, Sefer Ha- Chukkim of 5721, p. 60; L.S.I, vol. XV, p. 55. 16 Sefer Ha-Chukkim of 5740, p. 2; L.S.I, vol. XXXIV, p. 3. 17 Sefer Ha-Chukkim of 5729, p. 144; L.S.I, vol. XXIII, p. 156; Sefer Ha-Chukkim of 5740, p. 100; L.S.I, vol. XXXIV, p. 109.

114 (5) Evidence Ordinance (New Version), 5731-197118;

(6) Civil Wrongs Ordinance (New Version)19.

(b) The State Service (Discipline) Law, 5723-196320, shall apply to the employees of the Authority as if they were State employees. For this purpose, the Minister of Agriculture and the Director of the Authority respectively shall take the place of the Minister and the Director-General wherever referred to in that Law.

26. (a) The Minister is charged with the implementation of this Law and may Implementation make regulations for its implementation. and reSu'at!ons. (b) The Minister may by order, after consultation with the Board of the Authority and with the approval of the Economic Committee of the Knesset, vary the list of Agricultural Enactments in the Schedule.

27. This Law shall come into force sixty days from the date of its Commencement, publication.

SCHEDULE (Section 1) Agricultural Enactments

1. Seeds Law, 5716-195621;

2. Plant Protection (Damage by Goats) Law, 5710-195022;

3. Plant Protection Law, 5716-195723;

4. Plants and Plant Products (Control of Export) Law, 5714-195424;

5. Forests Ordinance, 193625;

6. Wildlife Protection Law, 5715-195526;

18 Dinei Medinat Yisrael (New Version) No. 18; NV vol. II, p. 198; Sefer Ha-Chukkim of 5742, p. 197; L.S.I, vol. XXXVI, p. 208. 19 Dinei Medinat Yisrael (New Version)No. 10; NV vol. II, p. 5; Sefer Ha-Chukkim of 5741, p. 134; L.S.I. vol. XXXV, p. 144. 20 5e/erHa-C/iuJt*:;'mof5723,p.50;L.S.I.vol.XVII,p.58; Sefer Ha-Chukkim of 5742,p. 134; L.S.I, vol. XXXVI, p. 17. 21 SeferHa-Chukkim of5716,p. 197; L.S.I.vol.X.p. 99; Sefer Ha-Chukkim of5725,p.55;L.S.I.vol. XIX, p. 53. 22 SeferHa-Chukkim of 5710, p. 311; L.S.I, vol. IV, p. 181. 23 Sefer Ha-Chukkim of 5716, p. 79; L.S.I, vol. X, p. 75. 24 SeferHa-Chukkim of 5714, p. 137; L.S.I, vol. VIII, p. 114; Sefer Ha- Chukkim of 5728, p. 56; L.S.I, vol. XXII, p. 56. 25 Laws of Palestine vol. II, p. 710 (English edition); P.G. of 1940, Suppl. I, p. 40 (English edition). 26 SeferHa-Chukkim of 5715, p. 10; L.S.I, vol. IX, p. 8.

115 7. National Parks, Natural-Reserves and National Sites. Law', 5723-1963 ;

8. Fisheries Ordinance, 193728;

9. Bee Protection Ordinance (New Version), 5743-198329;

10. Rabies Ordinance, 193431;

11. Animal Diseases Ordinance (New Version), 5745-198532;

12. Improvement of Agricultural Production (Livestock) Law, 5712- 195233;

13. Animals and Animal Products (Control of Export) Law, 5717-195734;

14. Peanut Production and Marketing Board Law, 5719-195935; 15. Licensing of Business Law, 5728-196836, as far as it relates to regulations made by the Minister of Agriculture thereunder;

16. Commodities and Services (Control) Law, 5718-195736, as far as it relates by the Minister of Agriculture thereunder; 17. Agricultural Settlement (Restrictions on Use of Agricultural Land and of Water) Law, 5727-196737.

ARYE NEHAMKIN Minister of Agriculture YITZCHAK SHAMIR Prime Minister

.erHa-Oiuitit/mof5742,p.34;L.S.I־/SeferHa-ChukkimofSnXp• 149; L.S.I, vol. XVII, p. 184; Se 27 vol. XXXVI, p. 271 28 P.G.of 1937,Suppl.I,p. 157(Englishedition), Se/ertfa-C/JuA*/mof5741,p.48;L.S.I.vo1.XXXV, p. 47. 29 Dinei Medinat Yisrael (Nusah Chadash) No. 38, p. 749; SeferHa-Chukkim ((??)); NV, vol. IV, p. [blank]. 30 P.G. of 1934, Suppl. I., p. 242 (English edition). 31 SeferHa-Chukkim of 5745, p. 83; L.S.I, vol. XXXIX, p. [blank]. 32 SeferHa-Chukkim of 5712, p. 128; L.S.I, vol. VI, p. 34. 33 SeferHa-Chukkim of 5717, p. 44; L.S.I, vol. XI, p. 40. 34 SeferHa-Chukkim of 5719, p. 76; L.S.I, vol. XIII, p. 77; SeferHa-Chukkim of 5740, p. 228; L.S.I, vol. XXXIV, p. 264. .p. 204; L.S.I, vol. XXII, p. 232 ,5728־SeferHa-Chukkim of 35 36 5erer//a-CAufc/c/mof5718,p.24;L.S.I.vol.XlI,p.24; Sefer Ha-Chukkim of 5746,p. 128;L.S.I. vol. XL, p. 137. 37 SeferHa-Chukkim of 5727, p. 108; L.S.I, vol. XXI, p. 105. (No. 50) SPECIAL EDUCATION LAW, 5748-1988*

Chapter 1: Interpretation

1. (a) In this law - Definitions "special education" - instruction, teaching and methodical care given under this law to a child with special needs, including physiotherapy, speech therapy, occupational therapy and treatments in additional professional disciplines that shall be determined including ancillary services, all in accordance with the needs of the child with special needs; "child with special needs" - a person between the ages of three and twenty-one who due to deficient development of his physical, intellectual, emotional or behavioral skills has limited ability for adaptive behaviour and is in need of special education; "recognized educational institution" - as defined in the Compulsory .5709-1949׳ ,Education Law "special education institution" - a recognized educational institution in which special education is provided, including a class in a recognized educational institution in which special education is provided. "ancillary services" - transport services and meals, teaching assistants, medical, paramedical, psychological and social services, and any service which the Minister has specified in an order, in consultation with the Minister of Health or the Minister for Labour and Social Welfare, as appropriate; "public body" - a national organization of volunteers dealing with the treatment of children with a particular category of special needs or with the promotion of their welfare, which the Minister has so recognized in / an order; ' "the Minister" - the Minister of Education and Culture; ' > • (b) Other terms shall have the same meaning as in the

2 ׳ , Compulsory Education Law, 5709-1949, and the State Education Law, 5713-1953 unless given a different interpretation in this law.

* Passed by the Knesset on 27th Tammuz 5748 (12 July 1988) and published in SeferHa-Chukkim No. l256of 7th Av,5748(21 July, 1988) p. 114;the Billandan Explanatory note were published in Hatza'otChok 1877, 5748, p. 170. 1 Sefer Ha-Chukkim 5709, p. 287; L.S.I. Vol 3, p. 125. 2 SeferHa-Chukkim 5713, p. 137; L.S.I. Vol 7, p. 113.

117 Chapter 2: Free Special Education

The Aim of 2• The aim of special education is to advance and develop the skills and ability Special of the child with special needs, to correct and improve his physical, intellectual, Education emotional and behavioral functioning, to impart to him knowledge, skills and habits and to mould him for acceptable behavior in society, with the aim of facilitating his integration into it and into the workforce.

Free Special 3. A child with special needs is entitled to free special education in a special Education education institution in his area of residence; where an institution as stated is not located in his area of residence the local education authority is responsible for the provision of special education for the child in a suitable institution, as close as possible to his area of residence, even if the institution is located within the jurisdiction of another municipal authority.

Responsibility 4. (a) The State is responsible for the provision of free special education under for Provision this Law. of Free Special Education (b) The maintenance of special education institutions under this Law within the jurisdiction of a local education authority, shall devolve jointly on the State and on the local education authority. (c) A local education authority that has sent a child with special needs to a special education institution within the jurisdiction of another local education authority (hereinafter - the sending authority) shall participate in the maintenance expenses of the institution as stated in respect of the child with special needs that it has sent; the Minister shall prescribe by order the rates of participation for the sending authority; for this purpose a local education authority shall be also deemed as a sending authority if the child with special needs resides outside its jurisdiction in a hostel as defined in the Homes (Supervision) Law, 5725-19653 (hereinafter - the Hostels Law). (d) The Minister is entitled to require a local education authority or a number of local education authorities jointly, to open and to maintain a special education institution for children with special needs residing within the jurisdiction of that local education authority or those local education authorities.

Chapter 3: Testing and Placement

Appointment 5. The Minister shall appoint Placement Committees for children with special of Placement Committees needs and shall determine the regions for their activity. Composition 6. (a) There shall be seven members in a Placement Committee, as specified of Placement below: Committees (1) a representative of the local educational authority, and he shall be the chairman;

3 Sefer Ha-Chukkim 5725, p. 48; L.S.I. Vol 19, p. 44. (2) two inspectors of the Ministry of Education and Culture, one of whom shall be an inspector for special education, or their representatives; (3) an educational psychologist under the Psychologists Law, 5737-19774 (hereinafter - educational psychologist), appointed by the local municipality; (4) a doctor specializing in pediatric medicine, from a list that shall be composed by the Minister of Health; (5) a person trained in social work, as defined in the Welfare Services Law, 5718-19585, with at least five years experience in the treatment of children with special needs (hereinafter - social worker), from a. list that shall be composed by the Minister for Labour and Social Welfare; (6) a representative of the national parents association for special education, from a list that shall be composed by the parents '׳ .association

(b) The chairman of a placement committee shall convene the committee.

7. (a) The Placement Committee shall determine the eligibility of a child with Determination special needs for special education and his placement in a special education of Eligibility institution. (b) In determining the placement of a child with special needs, the Placement Committee shall give first preference to placing him in a recognized educational institution which is not a special education institution. (c) Where a Placement Committee has decided on the placement of a child with special needs in an institution as stated in subsection (b), the committee shall recommend the treatment or special lessons that shall be given in that institution. (d) Where the Placement Committee is confronted with the case of a child with special needs whom a testing committee under the Welfare (Treatment of Retarded Person) 5729-1969 has determined to be intellectually handicapped, in reaching its decision the Placement Committee shall take the decision of the testing committee into consideration.

8. A Placement Committee shall consider the cases of those referred to it by a Referral to a Placement parent, recognized educational institution, local education authority, publicbody or Committee any person whom the Minister, the Minister for Labour and Social Welfare or the Minister of Health has authorized for this purpose.

4 SeferHa-Chukkim 5737, p. 132; L.S.I. Vol 23, p. 144. 5 SeferHa-Chukkim 5718, p. 103; L.S.I. Vol 12, p. 120.

119 Powers of the 9. (a) A Placement Committee may order any person to provide it with any Committee document in his possession as well as a medical or psychological opinion relevant and its Deliberations to the child with special needs, and may refer the child for additional examinations, where necessary, all as required by it to reach its decision. (b) The committee shall invite the parents of the child with special needs and shall permit them or a person appointed by them to state their case; it is also entitled to hear the child with special needs. (c) The deliberations of the committee shall be recorded in a protocol; the protocol, the medical documents and any other document held by the committee are confidential, but it shall be permitted to bring them to the notice of any person whose services are needed in order to reach a decision; a person to whose notice a protocol or document is brought as stated is obliged to keep them secret. (d) The committee shall notify the parents of the child with special needs or a person appointed by them in writing of the decision and its reasons, unless it has decided that due to particular circumstances the reasons should not be brought to their notice; however, an educational psychologist, doctor or social worker acting on their behalf shall be entitled, in any case, to study the complete protocol.

Review 10. (a) The principal of a special education institution shall after three years, present the case of a child with special needs studying in the institution to the Placement Committee for a review (hereinafter - review). (b) A review may also be conducted after a period shorter than that prescribed in subsection (a), whether at the initiative of the principal of the institution as stated or at the request of a public body. (c) A parent may, at any time, present the case of their child with special needs for a review, provided that one year has passed since the previous decision in his case. (d) In a review as stated in subsections (b) and (c) the Placement Committee is entitled to decide solely on the basis of documents. Decision of 11. The decision of a placement committee shall be adopted by a majority vote the Placement Committee of its members participating in the deliberations, provided that their number shall not be less than three. Appointment 12. (a) The Minister shall appoint an Appeals Committee of seven members, of an Appeals Committee (b) The members of the Appeals Committee shall be: (1) the regional director of the Ministry of Education and Culture or his representative, and he shall be the chairman; (2) the regional educational psychologist of the Ministry of Education and Culture; (3) a special education inspector;

120 (4) a social worker from a list that shall be composed by the Minister for Labour and Social Welfare; (5) a specialist doctor from a list that shall be composed by the Minister of Health; (6) a representative of the national parents association for special education, from a list that shall be composed by the parents association; (7) a representative of a public body from lists that have been submitted to the Minister by the public bodies. (c) The chairman of the Appeals Committee shall convene the committee.

13. (a) A child with special needs, parent or representative of a public body Appeal may appeal to the Appeals Committee against the decision of a Placement Committee, within twenty-one days of the date the decision is adopted. (b) The Appeals Committee is entitled - (1) to allow the appeal and to change the decision of the Placement Committee; (2) to return the matter to the Placement Committee for a review, with or without instructions; (3) to reject the appeal. (c) The Appeals Committee shall give its decision within twenty-one days of the date of submission of the appeal, except where it has extended this period for special reasons which shall be noted. (d) The decision of the Appeals Committee shall be adopted by a majority vote of its members participating in the deliberations, provided that their number shall not be less than three. (e) The decision of the Appeals Committee shall be final.

Chapter 4: Studies in a Special Education Institution

14. The Minister, with the agreement of the Minister of Finance, is entitled to Duration of the Academic determine that the academic year in special education institutions, all or part Year thereof, shall be extended beyond the regular academic year; similarly the Minister may also determine that studies in institutions as stated will take also place during periods of regular school holidays.

15. (a) The Minister, with the agreement of the Minister of Finance, may fix an Extended extended study day in special education institutions, all or part thereof, and the Study Day number of lessons in a study day as stated.

121 (b) The Minister will determine the ancillary services that are required as a result of the extended study day. (c) A determination as stated in subsections (a) and (b), in respect of a special education institution within a hostel which serves as a residence as defined in the Supervision Law, shall be made in consultation with the Minister for Labour and Social Welfare. /

Teachers 16. (a) A teacher in a special education institution shall be a certified teacher with training in special education or a teacher who has received a temporary permit from the director-general of the Ministry of Education and Culture to serve as a teacher in a special education institution. (b) The aformentioned provision of subsection (a) shall not prevent the employment of a person who is not a teacher as stated in subsection (a) as an assistant to a teacher in a special education institution, as shall be determined by the director-general of the Ministry of Education and Culture. Class Size 17. The Minister, with the agreement of the Minister of Finance, shall prescribe by regulations the maximum number of students in a class of a special education institution, based on the type and character of the institution. Caregivers 18. (a) The Minister may set standards and professional criteria for who are not psychologists and paramedical professionals and others who are not teachers, who Teachers are employed in special education; a determination as stated shall be with the agreement of the Minister of Health or in consultation with the Minister for Labour and Social Welfare, as appropriate. (b) Professionals as stated in subsection (a) shall be duly certified or licensed in their profession, as appropriate.

Individual 19. (a) At the commencement of each academic year and not later than the date Study Program set by the Minister in regulations, the caregiving team in a special education institution shall set an individual study program for each child with special needs studying in that institution.

(b) In order to set the individual study program the parents of the child with special needs or a person whom the Minister has determined for this purpose in regulations, shall be summonsed. (c) In this section, "individual study program" - a program describing the functional level of the child with special needs at the time of its preparation, the educational aims and targets, the timetable to achieve them, the necessary means to achieve them and the criteria for determining their achievement.

,Evaluation 20. At the end of the academic year the parents of a child with special needs studying an a special education institution shall receive a written evaluation on the extent of progress of the child in various fields, taking into account the individual study program.

122 21. In the Compulsory Education Law 5709-1949, sections 4a through 4e, 6(a 1 ) Amendment and 9 - are repealed. of the Compulsory Education Law

22. This Law comes to add to that stated in any law and not to detract from Saving of it. Law

23. The Minister is responsible for the implementation of this Law and may Implementation make regulations in respect of its implementation. and Regulations

24. (a) The provisions of this Law in respect of - Commencement and Application (1) the provision of special education to children with special needs of the ages of three or four or above eighteen years of age; (2) the provision of ancillary services, shall be applied gradually, commencing with the 5750 academic year, under orders that shall be determined by the Minister, with the agreement of the Minister of Finance, for each of the stated matters, in whole or in part, provided that the application shall be completed no later than the beginning of the 5757 academic year. (b) The commencement of the balance of the provisions of this law shall be six months from the date of its publication.

YITZCHAK SHAMIR YlTZCHAK NAVON Prime Minister Minister of Education CHAIM HERZOG and Culture President of Slate (No. 51) SEAWATER POLLUTION FROM SOURCES ON LAND (PREVENTION) LAW, 5748-1988* 1. Definitions in this Law — "convention" means an international convention which deals with the regulation of the prevention of sea pollution from sources on land and to which Israel is a party, or a part of any such convention; "permit" means a permit under this Law; "the Minister" means the Minister of the Interior; "sea water pollution" means an act or omission contrary to the provisions of section 2; "sea" means the Mediterranean, the Red Sea and the and includes their shores up to the fresh water line; "sources on land" means any source on land and includes a fixed marine installation but does not include a vessel within the meaning of the Prevention of Seawater Pollution (Dumping of Waste Law), 5748-1983 "waste" means matter of any kind or form; "sewage" means waste removed by draining and includes sludge and solids in suspension.

Prohibitions 2. No person shall, directly or indirectly, dump or flush into the sea any waste or sewage from a source on land with a view to disposing of it in the sea, save under a permit and in accordance with the provisions of this Law and the regulations made hereunder: provided that no permit shall be issued for waste or sewage prohibited by regulations under section 14(a)(1).

Committee 3. (a) The Minister shall appoint a Committee for the Issue of Permits for the issue ... r of permits. consisting of- (1) a representative of the Minister of the Interior who shall be the chairman; (2) a representative of the Minister of Defense; (3) a representative of the Minister of Health; (4) a representative of the Ministry of Industry and Commerce; (5) a representative of the Minister of Agriculture;

* Passed by the Knesset on 4 Av 5748 (18 July 1988) and published in Sefer Ha-Chukkim No. 1258 of7Av 5748 (21 July 1988), p. 118; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1884 of 5748, p. 190. 1 Sefer Ha-Chukkim of 5743, p. 110; L.S.I, vol. XXXVII p. 127

124 (6) a representative of the Ministry of Tourism; (7) a representative of the Ministry of Transport. (b) Notice of the appointment and address of the Committee shall be published in Reshumot. (c) The Committee shall prescribe the procedure for its business insofar as it is not prescribed by this Law; the Committee may delegate powers in respect of particular classes of permits to its chairmen or to a team from among its members: provided that conditions of a permit which relate to the operation of a port shall be prescribed with the consent of the Minister of Transport.

4. A person who has received a permit shall, in the manner prescribed, report on Reporting on the dumping of waste, or the draining of sewage, as the case may be, into the oTpermu"'3''011 sea.

5. (a) The Minister shall appoint inspectors for the purposes of this Law. Inspectors. (b) For the enforcement of the provisions of this Law, an inspector may enter any place if he has reasonable grounds for supposing that waste is dumped or sewage drained into the sea, but he shall not enter: (1) a place used only for residential purposes, save under a court order; (2) a place occupied by the Defense Establishment, save with the permission of the Minister of Defense or a person empowered by him. (c) Where an inspector has entered a place under subsection (b), he may take samples of any waste or sewage which, in his opinion, is likely to cause sea water pollution or may serve as evidence of an offense under this Law. Samples as aforesaid may be examined at a laboratory and dealt with in any other manner. (d) The Minister of Police may empower an inspector to carry out investigations and searches in order to prevent or discover offenses against this Law. In the exercise of this power — (1) an inspector may use all the powers vested in a police officer of the rank of inspector under section 2 of the Criminal Procedure (Evidence) Ordinance2, and section B of that Ordinance shall apply to a statement taken down by virtue of that power; (2) an inspector under section 3 of the Criminal Procedure (Arrest and Searches) Ordinance (New Version), 5729- 19693, shall be deemed to be a police officer.

2 Laws of Palestine, Vol. II, p. 467 (English edition). J Laws of the State of Israel Nosach Chadash 12, p. 284; L.S.I. N.V. 2, p. 30.

125 Penalties 6. (a) A person who contravenes the provisions of section 2 is liable to imprisonment for a term of one year or a fine of 50,000 New Israeli Shekalim and, if the offense continues, to an additional fine of 100 New Israeli Shekalim in respect of every day that the offense continues after conviction. (b) Where an offense under this Law is committed by a body corporate, every person who at the time of its commission is an active director or a partner (other than a limited partner) of that body corporate, or an official thereof responsible for the matter in question, shall also be guilty of the offense unless he proves that it was committed without his knowledge and that he took all reasonable measures to ensure compliance with this Law.

Defense. 7. In the case of an offense under the provisions of section 2, it shall be a good defense if it is proved that it was necessary to dump or drain the waste into the sea because of damage or an accident or an actual danger to human life, and also that all reasonable measures were taken to prevent the dumping or draining of the waste into the sea.

Civil 8. A private complaint under section 68 of the Criminal Procedure Law complaint. (Consolidated Version) 5742-1982 1 shall not be filed unless: (1) the complainant is: — (a) any person in respect of an offense which was committed in his private domain or caused damage to his property or (b) a local authority in respect of an offense committed in its area; (c) any of the public or professional bodies specified in section 100(3) of the Planning and Building Law, 5725- 19652; (3) the offense which is the subject of the complaint was not committed in the area of a port within the meaning of the Ports Ordinance (New Version), 5731-1971

Liability for 9. (a) A court which has convicted a person of an offense under this Law may, expenses of cleansing. in the sentence, in addition to any penalty it may impose, order the payment of the whole or part of the below mentioned expenses, whatever their amount, if an application therefor has been submitted by whoever incurred them: (1) the expenses of cleansing the sea, the shore and everything polluted by the waste dumped or drained into the sea in committing the offense;

3 Dinei Medinat Yisrael (Nusah Chadash) , No. 12, p. 284; NV Vol. II, p. 30. 4 Sefer Ha-Chukkim of 5742, p. 43; L.S.I. Vol. XXXVI, p. 35.

126 (2) the expenses of localizing the waste dumped or drained into the sea in order to prevent an expansion of the seawater pollution and to restrict the damage caused. (b) Where more than one person is convicted of the offense, the court may, by a decision under this section, impose the payment of the expenses on all or some of them, jointly and severally, or divide the amount between them, as the court may deem proper in the circumstances of the case. (c) If the court gives no substantive decision as to an application under this section, this shall not affect the right of the person who incurred the expenses to recover them by an ordinary action.

10. Fines imposed for offenses under this Law shall be paid into the fund Designation of monies established by Section B of the Seawater Pollution by Oil (Prevention) Ordinance of fines. (New Version), 5740-19805.

11. A license under the License of Businesses Law, 5728-19686, and a license Licenses to be subject required under any enactment for the establishment and management of any to condition. undertaking shall be regarded as additional on compliance with the provisions of this Law.

12. The provisions of this Law shall not derogate from any other Law. Saving of laws.

13. This Law shall also apply to the State. Application to the State.

14. (a) The Minister is charged with the implementation of this Law and may, Implementation' and regulations. with the approval of the Home Affairs and Ecology Committee of the Knesset, make regulations as to the following matters: (1) kinds of waste and sewage which it is prohibited to dump or drain into the sea; (2) conditions of the issue of permits; (3) procedure for the issue, renewal, variation or cancellation of permits; (4) anything relating to the implementation of this Law. (b) Regulations under subsections (a)(1) and (3) shall be made having regard to the provisions of a convention. (c) The Minister may, with the consent of the Minister of Finance and the approval of the Home Affairs and Ecology Committee of the Knesset, make regulations as to anything relating to the fixing of fees payable upon the submission

5 Sefer Ha-Chukkim of 5725, p. 307; L.S.I. Vol. XIX, p. 330. 6 Dinei Medinat Yisrael (Nusah Chadash) , No. 20, p. 443, NV vol. II, p. 220.

127 of an application for the issue or renewal of a permit and to the use of the monies of such fees.

Amendment 15. The following shall be added at the end of the Second Schedule to the of Criminal Procedure Law Criminal Procedure Law (Consolidated Version), 5742-1982: 16. An offense under section 2 of the Seawater Pollution from Sources on Land (Prevention) Law, 5748-1988, with the restrictions specified in section 8 of that Law." Commencement. 17. This Law shall come into force on 4th Tevet 5750 (1 January 1990).

YITZCHAK SHAMIR Prime Minister und CHAIM HERZOG President of Stute

7 Sefer Ha-Chukkim of 5728, p. 204, L.S.I, vol. XXII, p. 232. 8 Dinei Medinat Yisrael (Nusah Chadash) No. 20, p. 443, NV vol. II, p. 220.

128 (No. 52) NATIONAL PARKS, NATURE RESERVES AND NATIONAL SITES (AMENDMENT No.7), LAW 5748-1988*

1. Section 44 of the National Park, Nature Reserves and National Sites Law Repeal or .hereinafter referred to as "the principal Law"), is hereby repealed. section 44) 5723-1963׳

2. A finable offense order made under section 44 of the principal Law shall be Transitional deemed to have been validly made under section 221 of the Criminal Procedure provision. Law (Consolidated Version), 5742-1982 2.

YITZCHAK SHAMIR ARYE NEHAMKIN Prime Minister Minister for Agriculture CHAIM HERZOG President of the State

' Passed by the Knesset on 27 Tammuz 5748 (12 July 1988) and published in Sefer Ha-Chukkim No. 1256 of 7 Av 5748 (21 July 1988), p. 122; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1863 of 5748, p. 99. 1 Sefer Ha-Chukkim of 5723, p. 143; L.S.I, vol. XVII, p. 184; Sefer Ha-Chukkim of 5742, p. 34; L.S.I. vol. XXXVI, p. 27. 2 Se/er Ha-Chukkim of 5742, p. 43; L.S.I, vol. XXXVI, p. 35.

129 (No. 53) SPORTS LAW, 5748-1988*

Definitions. 1. "sport" or "sports activity" means any competitive or non-competitive activity of the nature of a game, for which a physical effort is required; "sports group" means a body of persons engaged in particular branch, or particular branches, of sport and affiliated with a sports organization or operating independently; "sports organization" means a non-profit body corporate in which sports groups engaged in different branches of sport are incorporated; "association and "union", in relation to sport, mean a non-profit body corporate coordinating and representing a branch or branches of , and recognized by the official international bodies recognized in the sports branch concerned; "sports institute" means an agency providing services being sports activities for purposes of profit; "organized sports activity" means a sports activity organized by a sports group, a 7sports organization, an association or a union; "the Minister" means the Minister of Education and Culture; "certificate of accreditation" means a certificate qualifying a person to act as a trainer or sports instructor, issued by a school in Israel recognized by the Minister for this purpose or issued by a school outside Israel recognized by a committee as referred to in section 4.

Requirement 2. (a) The Minister may prescribe by order that, in all or part of a particular of accrediting sports branch, no person shall act as a trainer or instructor unless he is in possession certificate. of a qualifying certificate for that branch. (b) A person who, immediately prior to the coming into force of an order under subsection (a), acted as a trainer or sports instructor in the branch to which the order relates may continue so to act without a certificate of accreditation for a period not exceeding two years from the date of the coming into force of the order.

Notice of 3. A person who, for remuneration or without remuneration, acts as a trainer or absence of sports instructor, within the framework of an organized sports activity or a sports accrediting certificate. activity at a sports institute or sports club, in a sports branch for which no order under section 2 has been made, and who is not in possession of a certificate of

* Passed by the Knesset on 4 Av 5748 (18 July 1988) and published in SeferHa-Chukkim No. 1256 of7Av5748(21 July 1988),p. 122; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1840 of 5748, p. 291.

130 accreditation, shall give advance notice to such effect to a person wishing to employ him or to receive a service from him.

4. (a) The Minister shall appoint a committee of three members, being Accreditation professionals in sport (the committee hereinafter referred to as "the committee"), of trainers and instructors whose function shall be to examine certification issued by schools outside Israel from abroad. and to recognize them as certificates of accreditation. (b) The committee may issue to a trainer or sports instructor from abroad, subject to conditions or unconditionally, a provisional permit, for a limited period, to act as a trainer or sports instructor, even if he is not in possession of a permit as referred to in subsection (a). (c) A person who considers himself aggrieved by a decision of the committee may appeal to a District Court consisting of a single judge.

5. (a) A sports group, a sports institute, a sports organization, an association Medical and a union shall not have athletes participate in sports competitions organized by examinations. them or on their behalf unless such athletes have first been medically examined and found fit. The Minister may, with the consent of the Minister of Health, by ׳ (b) regulations, after consultation with the association or union concerned, prescribe the types and frequency of the medical examinations. (c) The medical examinations shall be carried out at sports medicine stations designated by the Minister of Health for that purpose.

6. (a) An athlete shall use no energizing drug or preparation to improve his Prohibition of use of sporting achievements. ^ energizing (b) The Minister may, by regulations, with the consent of the Minister of preparations. Health, designate the energizing drugs and preparations the use of which is / ׳ .(prohibited under subsection (a (c) The Minister may, in consultation with the Minister of Health, prescribe rules for the carrying out of medical sample tests, at times of competitions, to discover athletes who have contravened the provisions of this section. An athlete who is ordered to have himself examined shall comply with the order. (d) An offense against the provisions of this section is also a disciplinary offense.

7. (a) A sports group, a sports organization, an association and a union shall Insurance. insure the athletes participating in sports competitions organized by them or on their behalf. (b) The Minister may, by regulations, after consultation with the appointee in charge of Insurance at the Ministry of Finance and with the sports organizations,

131 determine the minimum amounts of insurance, and the particulars of insurance, for all or part of a sports branch.

Safety. 8. The Minister may, by regulations, prescribe provisions as to safety procedures for activities in the different sports branches and may also, with the consent of the Minister of Health, prescribe provisions as to medical personnel and first- aid equipment which shall be available in places where organized sports activity is conducted. Provisions as aforesaid may be general or specific to the whole or part of a sports branch.

Keeping and 9. (a) A sports group, a sports organization, an association, a union and a inspection of sports club shall keep account-books reflecting their transactions and financial books. position faithfully and completely. (b) The Minister or a person empowered by him in the behalf may inspect the account-books. 'The provisions of this Law shall not derogate from the provisions of any law.

Charters 10. (a) An association or union shall enact charters regulating the management of the sports branch or branches coordinated by it, including rules as to discipline, internal judicature, the transfer of athletes and remunerations and payments to athletes and to trainers and other functionaries. (b) The charters as stated shall contain provisions as to equal opportunities in sport for women. (c) The charters as stated shall be binding on sports groups, athletes and functionaries in the sports branch or branches concerned.

Internal 11. The internal judicial institutions designated in the rules shall have exclusive judicial institutions. power to hear and decide matters connected with activities within the framework of an association or union. The decisions of the supreme internal judicial authority in matters of discipline shall be final and may not be appealed before a Court.

Objection 12. (a) Where, in accordance with rules under section 10, a sports group has concerning the transfer prohibited or restricted the transfer of an athlete who has not yet completed his of athlete. seventeenth year, such athlete may, in ruases designated by regulations in consultation with the sports organizations, lodge an objection to the group's decision with a judge appointed by the Minister in consultation with the President of the Supreme Court for the purpose of objections as aforesaid. (b) A judge as referred to in subsection (a) may confirm, cancel or amend the decision of the sports group.

Use of 12. (a) The Minister may, by regulations, with the consent of the Minister of sports installations. the Interior, prescribe conditions under which a local authority may be required to enable sports activities at sports installations situated at educational installations, public structures or public areas belonging to that local authority at hours when the installations are not in use, provided that priority is given to all the residents of that local authority.

132 (b) No person shall use sports installations as referred to in subsection (a) unless he has paid a fee-for-use as prescribed by the local authority.

(c) The provisions of the Taxes (Collection) Ordinance 1 shall apply to the collection of a fee-for-use under subsection (b) as if it were a tax. (d) The Minister may, with the consent of the Minister of the Interior and in consultation with the local authority concerned, by order, direct a local authority, or several local authorities jointly, to allot areas for sports activities and to erect sports structures. An order as aforesaid shall be made having regard to the size of the population and the types of sports activities suitable for it and shall define the area, the types of installations and the measurements thereof. (e) The Minister may define standards for sports installations and sports apparatus at an educational institution, within the meaning of the Compulsory Education Law, 5709-1949 2.

14. The emblems of sports groups and sports organizations shall be protected. Protection of emblems. The commercial use thereof unauthorized by the group or organization is prohibited. 15. A person who contravenes any of the provisions of this Law or regulations Penalties. thereunder, shall be liable to a fine as specified in section 61 (a)(2) of the Penal Law, 5737-19773. 16. The provisions of this Law shall not apply to athletes from abroad not Limitation of application. registered in any association or union who come to Israel to take part in a sports competition. 17. This Law shall be in addition to and not in derogation of any other law. Saving of laws.

18. (a) The Minister is charged with the implementation of this Law and may Implementation and regulations. make regulations as to any matter relating to its implementation. (b) Regulations,as aforesaid shall be made after consultation with the sports organizations save insofar as this Law provides that they shall require the consent of, or consultation with, someone else. (c) Regulations under this Law, except regulations as referred to in subsection (a), shall be made with the approval of the Committee on Education and Culture of the Knesset. YITZCHAK SHAMIR YITZCHAK NAVON Prime Minister Minister of Education CHAIM HERZOG and Culture President of State

Laws of Palestine, Vol. II, p. 1399 (English Edition). SeferHa-Chukkim of 5709, p. 287; L.S.I, vol. Ill, p. 125. Sefer Ha-Chukkim of 5737, p. 226; L.S.I. Special Volume, Penal Law of 5737-1977; Sefer Ha-Chukkim of 5747, p. 88; L.S.I., vol. XLI, p. 85.

133 (No. 54) EMERGENCY REGULATIONS (PROTECTION OF EDUCATIONAL INSTITUTIONS) (EXTENSION OF VALIDITY) LAW, 5748-1988*

Extension 1. The validity of the Emergency Regulations (Protection of Educational hereinafter referred to as "the Regulations") is hereby) 5734-1974׳ ,(of validity. Institutions extended until 30 Av 5749 (31 August 1989).

Power of 2. The Minister of Education and Culture may, at all times with the approval of early the Committee of Education and Culture of the Knesset, by way of an order to be revocation. published in Reshumot, revoke the whole or part of the Regulations or restrict powers thereunder.

Commencement. 3. This Law shall come into force on 18 Elul 5748 (31 August 1988).

YITZCHAK SHAMIR Prime Minister und CHAIM HERZOG President of State

Passed by the Knesset on 4 Av 5748 (18 July 1988) and published in SeferHa-Chukkim No. 1257 on 7 Av 5748 (21 July 1988), p. 126; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1885 of 5748, p. 203. 1 Kovetz Ha-Takkanot of 5734, p. 1902; Sefer Ha-Chukkim of 5735, pp. 18 and 196 - L.S.I, vol. XXIX, pp. 25 and 259; Sefer Ha-Chukkim of 5736, p. 274 - L.S.I, vol. XXX, p. 268; Sefer Ha-Chukkim of 5734, p. 180 - L.S.I, vol. XXXIII, p. 173; Sefer Ha-Chukkim of 5740, p. 153 - L.S.I, vol. XXXIV, p. 173; Sefer Ha-Chukkim of 5741, p. 334 -- L.S.I, vol. XXXV, p. 412; Sefer Ha-Chukkim of 5742, p. 178 - L.S.I, vol. XXXVI, p. 185; Sefer Ha-Chukkim of 5744, pp. 2 and 168; L.S.I. vol. XXXVIII, pp. 3 and 197; Sefer Ha-Chukkim of 5745, p. 120 - L.S.I, vol. XXXIX, p. 183; Sefer Ha-Chukkim of 5746, p. 246 - L.S.I, vol. XL, p. 264; Sefer Ha-Chukkim of 5747, p. 140 L.S.I vol.41 p. 145

134 (No. 55) RESTRICTIVE TRADE PRACTICES LAW 5748-1988*

CHAPTER ONE: DEFINITIONS

Definitions ׳ - In this Law ;includes the deputy president of the court ״ "president of the court" "business organization" - a body of persons, whether incorporated or not, all or some of whose purposes arc the advancement of its members' business interests; "consumer organization" - an organization that represents consumers, approved by the Minister of Justice for purposes of this law; "court" — the Restrictive Business Practices Court established under this law; "restrictive business practice" — a restrictive arrangement, monopoly, or amalgamation of companies; "arrangement" - whether explicit or implicit, whether in writing, verbal or in practice, whether legally binding or not; "company" — a company founded and registered under the Companies Ordinance (New Version) 5743-1983, including a foreign company registered as aforesaid, a registered cooperative society, within the meaning of that term in the Cooperative Societies Ordinance, and a partnership registered under the Partnership Ordinance (New Version) 5735-19753; "subsidiary" - a company over which another company holds control; "price" - including linkage differentials to an index or foreign exchange rate, interest, installments and other payment terms; "amalgamation of companies" - including the acquisition of most of the assets of a company by another company or the acquisition by another company of shares in a company that gave the acquiring company more than one-fourth of the nominal value of the issued capital or of the voting power, or the right to appoint more than one fourth of the directors, or participation in more than one fourth of the company's profits; acquisition may be direct or indirect, or by way of contractual rights;

* Passed by theKnesset on the 12th Av 5748 (26 July 1988); the Bill and or Explanatory note were published in Hatzaot Chok 1647, 5747, p. 41. ' Law of the State of Israel, New Version 37, p. 764. 2 Laws of Palestine, Vol. A, P. 155. 3 Laws of State of Israel, New Version 28, p. 549. L.S.I. New Version 2, p. 28.

135 "controller" - the Controller of Restrictive Business Practices, appointed under section 41; "assets" -- movable or real, or a right;

"business" -- occupation in the production, sale, marketing, acquisition, import or export of assets, as well as occupation in the provision or receipt of a service; "control" - possession of more than half of one of the following means of control; (1) the right to vote at a general meeting of a company, or in the corresponding body of another body corporate; (2) the right to appoint directors in the body corporate; "minister" - the Minister of Industry and Trade.

CHAPTER TWO: RESTRICTIVE ARRANGEMENT Article One: A Restrictive Arrangement Defined Restrictive 2. (a) A restrict arrangement is an arrangement made between persons who arrangement manage businesses,. according to which at least one of the parties imposes a restriction on himself which is liable to prevent or to reduce business competition between himself and all or some of the other parties to the arrangement, or between himself and a person who is not party to the arrangement. (b) Without derogating from the generality of the provisions of subsection (a), any arrangement according to which the restriction applies to one of the following shall be deemed a restrictive arrangement: (1) the price to be asked, offered or paid; (2) the profit to be produced; (3) division of all or part of the market, by place of business or by the people or categories of people with whom business is to be transacted; (4) the quantity, quality or category of assets or services in the business. Arrangements 3. Notwithstanding the provisions of section 2, the following arrangements shall that are not restrictive not be deemed restrictive arrangements: (1) an arrangement, all the restrictions of which were established lawfully; (2) an arrangement, all the restrictions of which apply to the right of using one of the following assets: a patent, design, trademark, copyright,

136 performers' right or developers' right, on condition that the following two conditions hold tnie for it: a. the arrangement is between the owner of a said asset and the person who is given the right to use it; b. if the said asset is subject to lawful registration ~ that it has been registered; (3) an arrangement between a person who transfers a real- estate right and the one who acquires that right, as far as its restrictions apply to the type of assets or services in which the person who acquired the right shall deal on that real estate; (4) an arrangement, all the restrictions of which apply to the cultivation and marketing of domestically produced agricultural produce of the following categories: fruit, vegetables, field crops, milk, eggs, honey, beef, mutton, poultry or fish, if all parties to the arrangement are growers or wholesale marketers; this provision shall not apply to products processed from the said agricultural produce; the minister may, by order with the agreement of the Minister of Agriculture and the approval of the Knesset Economic Committee — add or detract categories of agricultural produce; (5) an arrangement, the parties to which are a company and its subsidiary; (6) an arrangement between a person who acquires an asset or a service and the supplier, all the restrictions of which constitute an undertaking by the supplier that he will supply that asset or service for marketing only to the purchaser, and an undertaking on the part of the purchaser to acquire that asset or service only from the supplier, on condition that the supplier and purchaser do not both engage in the production of the same assets or the provision of the same services; an aforesaid arrangement may be for the entire area of the State or for part of it; (7) an arrangement, all the restrictions of which apply to international sea or air transportation or to integrated international sea, air and land transportation, on condition that all parties to it are — 1. Maritime or air conveyors. 2. Maritime or air conveyors and at the international association of aviation maritime companies approved for this purpose by the Finance Minister. (8) an undertaking by a person who sells a business in its entirety toward the purchaser of his business, not to engage in that line of business, that undertaking not being in conflict with reasonable and established practice; (9) an arrangement to which an employee organization or an employer organization is a party, all the restrictions of which relate to employment and working conditions.

Article Two: Prohibition of Restrictive Arrangement

Prohibition of 4. No person shall be party to all or part of a restrictive arrangement, unless he restrictive received approval from the court under section 9 of a temporary permit under arrangement section 13 or an exemption under section 14, and, -- if the approval, temporary permit or exemption are conditional, - on the terms specified therein.

Policy of 5. If a policy set by a business association for some or all its members is liable to business reduce business competition between them, or if it recommends such, a policy to association them, that shall be deemed a restrictive arrangement as stated in section 2, and the association and each of its members who acts in accordance with the policy shall be deemed parties to a restrictive arrangement.

Adaptation to 6. If a person who manages a business, knowing that a restrictive arrangement a restrictive exists, adapts his action to part or all of the arrangement, he shall be deemed a party arrangement to that arrangement.

Article Three: Registration and Approval of Restrictive Arrangement

Application 7. (a) Any person who wishes to create a restrictive arrangement shall submit for approval application for the approval of the restrictive arrangement to the court, in the of restrictive arrangement manner set in regulations, after a copy of it has been recorded as said in subsection (b). (b) The applicant shall deliver a copy of the application to the controller; the controller shall record the application in a register kept as said in section 42, and he shall make notification thereof in Reshumot and in two daily newspapers; the particulars and manner of the publication shall be set in regulations.

Hearings 8. (a) The controller shall be summoned before the court to state his position and and arguments on the application. opposition (b) Any person who deems himself injured by the restrictive arrangement, business associations and consumer organizations may submit to the court their reasoned opposition in writing within 30 days of the notification's publication in Reshumot under section 7(b).

Court 9. The court shall decide to approve all or part of the restrictive arrangement, if it decision finds that doing so is to the benefit of the public, and it may make its approval conditional. Benefit of 10. In weighing the public interest for purposes of this chapter, the court shall the public also take into consideration the contribution of the restrictive arrangement to the following, and whether the expected public benefit substantially exceeds the damage which is liable to be caused to the public or to part of it or to whoever is not party to the arrangement;

138 (1) the more efficient production or marketing of assets or services, the assurance of their quality or the reduction of their price to the consumer; (2) the assurance of a sufficient supply of assets or services to the public; (3) the prevention of unfair competition on the part of a person who is not a party to the arrangement, which is liable to result in the reduction of competition in the supply of assets or services in which the parties to the arrangement engage; (4) the ability of parties to the arrangement to obtain the supply of assets or services on reasonable terms from a person who controls a significant part of the supply, or to supply assets or services on reasonable terms to a person who controls a significant part of the demand for those assets or services; (5) prevention of serious injury to an important branch of the national economy; (6) protection of the continued existence of enterprises as a source of employment in an area in which real unemployment could result due to their closure or cutbacks in their production; (7) improvement of the State's balance of payments, by way of reducing or lowering the price of imports, or by way of expanding exports or increasing their profitability.

11. An approval by the court shall be for a period set by it; if the court set no Period of such period, the arrangement shall be approved for the period set by the parties or approval for three years, whichever is less.

12. (a) The court may cancel an approval issued by it and it may alter its Cancellation and alteration conditions, if it is satisfied -- upon application by the controller - that the of approval circumstances that prevailed when approval was given have changed substantially. (b) Any person who deems himself injured by a restrictive arrangement, as well as a consumer organization or a business association which holds that the circumstances of the approved arrangement have changed substantially, may apply to the controller to use his powers under subsection (a); if the controller decides that the circumstances do not justify the use of his aforesaid powers, he shall so inform the applicant and give his reasons in writing within 30 days of having received the application.

13. (a) When an application for the approval of a restrictive arrangement has' Temporary been submitted, the court may -- if the controller so recommends and it is satisfied permit that the arrangement is to the public benefit, within the meaning of section 10 --

139

L grant the parties in accordance with their application a temporary permit to act according to the arrangement; the permit shall be for a definite period of not more than one year, or until the court issues its decision under section 9, whichever is earlier; the president of the court may make the permit conditional. (b) The controller shall deliver notice of the issue of a temporary permit to any person who submitted opposition to that arrangement under section 8. (c) The president of the court may -- on the application of the controller or cancel the temporary -־ of a person who submitted opposition to the arrangement permit, provided that the parties to the restrictive arrangement, the controller and the applicant for the cancellation have been given an opportunity to state their cases.

Exemption 14. (a) If the controller is convinced, upon application by a party to a from need for permit restrictive arrangement, that the arrangement restricts business competition in an insignificant manner, he may - by reasoned decision - exempt the parties to the arrangement from the need to obtain the court's approval of the arrangement. (b) The controller may set conditions for the exemption; he may change them and he may cancel the exemption. (c) Notification of an exemption and its conditions, of a change in the conditions and of the cancellation of an exemption shall be delivered to the parties to the arrangement and to the president of the court, and it shall be published in Reshumot. (d) When an application for approval has been submitted in relation to an arrangement the subject matter of which falls within the scope of responsibility of a government Ministry, then the controller shall inform the director-general of that Ministry of the application, and he shall reach no decision on that application before 14 days have passed after the despatch of that notification. Cancellation 15. (a) Any person who deems himself injured by a restrictive arrangement, in of exemption respect of which an exemption was issued under section 14, business associations and consumer organizations may - in writing and giving their reasons - object before the president of the court to the controller's decision not to cancel the exemption that was given. (b) If the president of the court finds that the restrictive arrangement does not meet the conditions said in section 14(a), he shall cancel the arrangement; the cancellation shall take effect on the date set by the president of the court. (c) The president of the court shall issue his decision only after the parties to the arrangement and the controller have been given an opportunity to state their case.

Change of 16. (a) Any substantial change in a restrictive arrangement which was restrictive arrangement approved by the court, or in an arrangement for which a temporary permit was

140 issued under section 13 or for which exemption was granted under section 14 shall be treated like a new restrictive arrangement, requiring application for approval under section 7 within 30 days of the change. (b) The parties to an aforesaid restrictive arrangement shall inform the controller of every change in it which they believe not to be a substantial change; if the controller finds that the change is substantial, he shall submit the matter to the president of the court for decision. (c) In this section, "change" -- including the entry or departure of a party.

CHAPTER THREE: AMALGAMATION OF COMPANIES Article One: Applicability and Prohibition of Amalgamations

17. (a) The provisions of this chapter shall apply to the amalgamation of Effect companies, for which one of the following holds true: (1) In consequence of the amalgamation, the share of the amalgamating companies in the production of a certain asset and of a similar asset, or in the provision of a certain service and a similar service exceeds one half, or a lower proportion if the minister so decided under section 26(c) for purposes of monopolies; (2) the sum of the sales volumes of the amalgamating companies, in the balance sheet year before the amalgamation, exceeded NIS 3m., the minister may — with the approval of the Knesset Economic Committee - change the said amount; (3) one of the amalgamating companies has a monopoly, within the meaning of that term in section 26. (b) (1) The amount stipulated in subsection (a)(2) shall be updated on January 1 and July 1 of every year (hereinafter: day of update) at the rate of index increase over the basic index, provided that the said rate of index increase is more than 10 percent. (2) An amount updated as aforesaid shall be rounded to the nearest NIS 10,000. (3) An amount updated as aforesaid shall be in effect from the day on • which the minister published notification thereof in Reshumot. (4) In this section — "index" -- the consumer price index published by the Central Bureau of Statistics; "new index" - the index last published before the day of update; "basic index" - the index last published before the last day of update, and for the first day of update after this law goes into effect -- the index published in October 1988.

( 141 (c) The minister may, in regulations with the approval of the Knesset Economic Committee, specify ways of ascertaining a company's share said in subsection (a)(1), and the sales volume said in subsection (a)(2). (d) In this section — "similar asset" -- an asset of similar attributes, even if not identical in all respects; "similar service" — a service of similar attributes, even if not identical in all respects.

Amalgamation 18. In an amalgamation with a company that conducts business both in Israel with company and abroad, the provisions of this chapter shall apply only in respect of the that is active abroad company's volume of sales in Israel and in respect of the company's share in Israel in relation to the production sale, acquisition or marketing of the asset or of the provision or receipt of the service in Israel.

Article Two: Notification of Amalgamation and Controller's Agreement

Prohibition of 19. Companies shall not amalgamate unless an amalgamation notice was amalgamation of companies previously given and unless the controller's agreement to the amalgamation has been given, and if his approval was conditional - in accordance with the conditions prescribed by him, all as said in this title.

Amalgamation 20. (a) Each of the companies that intend to amalgamate shall so inform the notice controller, in a notification of the particulars of which shall be prescribed by regulations (hereinafter: amalgamation notice); the controller may demand additional particulars which he deems necessary for an examination of the application. — (b) Within 30 days after he has received amalgamation notices from all the companies that wish to amalgamate, the controller shall inform them whether he agrees or disagrees with the amalgamation or makes it conditional on conditions which he shall specify in his notice; failure to give notice as aforesaid within the said 30 days shall be treated like a notice of approval, unless the time was extended under section 38. (c) If an amalgamation notice was delivered to the controller, and if the sphere of activity of the companies that wish to amalgamate falls within the scope of responsibility of a government Ministry, then the controller shall transmit a copy of the application to the director-general of that Ministry. Controller's 21. (a) The controller shall oppose the amalgamation of companies or he shall decision set conditions for it if - in his opinion - there is a danger that, in consequence of the amalgamation as proposed, competition in that branch of the economy will be substantially affected or that the public will be injured in one of these: (1) the price level of an asset or service;

142 (2) the low quality of an asset or service; , (3) the quantity of the asset supplied or the service offered, or the regularity and conditions of supply. (b) The controller shall publish notification in Reshumot and in two daily newspapers of his decision to agree to an amalgamation of companies, or to oppose it or to make it conditional.

22. (a) If the controller opposed an amalgamation of companies or made his Appeal against approval conditional, then each of the companies that wish to amalgamate may controller's decision appeal to the court within 30 days from the day on which it received the controller's decision. (b) If the controller agreed to an amalgamation of companies, whether conditionally or not, then every person who is liable to be injured by the amalgamation, business associations and consumer organizations may appeal to the court against the controller's decision, and that within 30 days from the day on which notification of the controller's decision was published in two daily newspapers. (c) The court may approve, cancel or change the controller's decision. (d) Submission of an appeal under subsection (b) shall not impede the amalgamation, unless an order has been issued under section 36.

23. (a) A consultative committee on company amalgamations shall be set up, Consultative committee on composed of persons with knowledge and experience in economics. company (b) The minister shall appoint the chairman and deputy chairman of the amalgamations committee, and he shall also make a list of five committee members who are government employees and five committee members who are not government employees. (c) A committee panel shall have three members; the committee chairman shall determine the committee panel that will hear a specific amalgamation notice; every panel shall be composed of the committee chairman or his deputy, one member from the list of members who are government employees and one member from the list of members who are not government employees, these being chosen -- as far as possible - in turn in the order of their appearance on the lists. (d) Any person whose other occupations are liable to create a conflict of interest with his responsibility as member of a committee panel in hearing a certain amalgamation notice, or who has a personal interest in the hearing, shall not be member of a panel that hears that amalgamation notice. (c) The committee chairman shall prescribe its procedure.

24. (a) The controller shall not agree to the amalgamation of companies, Obligatory whether conditionally or not, before he has consulted with the consultative consultation committee under section 23.

143 (b) The controller shall forward to the committee chairman a copy of every amalgamation notice immediately after its receipt.

Article Three: Separation of Companies

Court's power 25. (a) If, upon application by the controller, the court finds that there is reason to dismember to suspect that an amalgamation of companies, carried out in contravention of the amalgamated companies provisions of this law, will substantially injure competition in that branch of the economy or will injure the public interest as said in section 21, then it may order the amalgamated companies to be seperated. (b) Dismemberment of the companies that have been amalgamated shall be by way of restoration of the previous situation or by way of transferring some of the shares to a body chosen by them which is not connected with them, or by way of setting up an additional company to which part of the companies' assets are transferred, or in any other manner which the court finds appropriate. (c) If the sphere of activity of one of the companies falls within the scope of responsibility of a government Ministry, then the controller shall transmit to the director general of that Ministry a copy of the application. (d) The provisions of this section shall not derogate from the provisions of section 31.

CHAPTER FOUR: MONOPOLY

Monopoly and 26. (a) For purposes of this Law, the concentration of more than half the total monopolist supply or the total acquisition of assets, or of more than half the total provision or total acquisition of services by one person (hereinafter: monopolist) shall be deemed a monopoly. The controller shall announce the existence of a said monopoly by notice in Reshumot; the provisions of section 43(b) to (c) shall apply to the announcement, as if it were a determination under section 43(a). (b) A monopoly may be in a certain geographical area. (c) The minister may prescribe, upon the controller's recommendation, that - in respect of certain assets or services -- a concentration of less than one half shall be deemed a monopoly, if he finds that a person who holds a said concentration exerts decisive influence on the market for those assets or services. (d) If the concentration said in subsection (a) or determined under subsection (c) is held by two or more persons, between whom there is no competition or little competition (hereinafter: concentration group), then that concentration shall be deemed a monopoly and the concentration group a monopolist, if the controller so determined under section 43(a)(4).

(e) Once every six months the controller shall submit a list of monopolists to the Knesset Economic Committee.

144 (f) In this section, "person" -- including a company and its subsidiaries, the subsidiaries of a single company, as well as a person and the company he controls.

27. (a) The controller may -- Restraints on the monopolist (1) demand in writing that a monopolist--who enters or proposes to enter into relations with customers or suppliers in accordance with a standard contract, as defined in the Standard Contracts Law 5743-1982 4 - make application for the approval of that contract under Chapter Three of the said law; if the monopolist failed to apply during the period set in the demand, he shall not propose to his customers or suppliers that they subscribe to the standard contract, to which the demand applies; (2) demand that the monopolist - who produces or imports an asset or provides a service, the specifications of which are set by a standard ,refrain from producing ״ under the Standards Law 5713-1953 5 importing and selling the asset or from providing the service, unless they conform to the requirements of the standard.

28. The monopolist may appeal to the court against a demand of the controller Appeal against under section 27 within 30 days of the receipt of the demand; lodging the appeal restraints of shall not impede implementation of the controller's demand unless the court decides monopoly otherwise.

29. A monopolist shall not unreasonably refuse to supply an asset or a service of Unreasonable refusal the monopoly.

30. If the court finds, upon application by the controller or of a consumer Instructions organization, that the existence of a monopoly causes injury to the public in one of on operation of monopoly the following: (1) the price level of the asset or service; (2) the low quality of the asset or service; (3) the quantity of the asset supplied of the extent of the service, or the regularity and conditions of supply; (4) the existence of unfair business competition between the monopolist and others, then it may issue instructions to the monopolist on the steps he must take in order to prevent the injury. ^

31. (a) If the court finds, upon application by the controller, that due to the Dismemberment existence of a monopoly significant injury is caused to the public in one of the areas of monopoly enumerated in section 30, and that the injury cannot be prevented effectively by issuing instructions under section 30 concerning the monopoly's operation, but

* Sefcr Ha-Chukkim 543, p. 8; L.S.I, vol 37, p. 6. 5 Sefer Ha-Chukkim 5713, p. 30; L.S.I. v°l 7, p. 24.

145 only by dismembering the monopoly into two or more separate business bodies corporate, then it may order the monopoly to be dismembered. (b) A monopoly shall be dismembered by way of transferring part of the shares to a body chosen by the monopolist, which is not connected to the monopolist, or by setting up an additional company to which part of the assets of the monopoly are transferred, or in any other manner which the court finds appropriate. (c) If the sphere of activity of the monopoly is within the scope of responsibility of a government Ministry, then the controller shall transmit to the. director general of that Ministry a copy of his application to the court. ' i

CHAPTER FIVE: RESTRICTIVE BUSINESS PRACTICES COURT Establishment 32. (a) A ^Restrictive Business Practices Court is hereby established. of court and appointment (b) The court shall have no more than seventeen members. of its members (c) The president of the court and his deputy shall be judges of a district court appointed by the Minister of Justice in consultation with the President of the Supreme Court.

(d) The other members of the court shall be appointed by the Minister of Justice, upon the minister's recommendation, and they shall include at least three representatives of consumer organizations and three representatives of business associations; the number of members who are government employees shall not exceed one third of all members. (e) The term of office of members of the court shall be two years; when a member's team ends he may be reappointed, but no member shall serve for more than three consecutive terms. (f) An announcement of the appointment of members of the court shall be published in Reshumot.

Composition 33. (a) Court hearings shall be before panels of five, but the president of the of panel court may order, before the hearing of a specific matter has begun - that it shall be heard by a larger odd number. (b) The president of the court shall determine the composition of the panel; each panel shall include the president of the court or his deputy and other members, one of them the representative of a consumer organization, one the representative of a business association and one a government employee, but the number of government employees on a panel shall not exceed one half.

Conflict of 34. (a) Any person whose other occupations are liable to create a conflict of interest interest with his responsibility as member of a court panel in a certain proceeding, or who has a personal interest in the proceeding, shall not be member of a panel that hears that proceeding and he shall so inform the president of the court.

146 (b) If a member suspects that a conflict of interest is liable to arise, he shall so inform the president of the court.

35. The court having made a decision on a restrictive business practice, it may — Consequent in that or an additional decision — issue any order which it finds appropriate in order powers to assure that its decision will be implemented.

36. The court or the president of the court may — in any matter brought before Interim the court or the president of the court — issue an interim order, if they find that it is order ־ appropriate to do so under the circumstances of the case.

37. (a) The court and the president of the court shall not be bound by the rules Evidence and of evidence, except for rules on the immunity of witnesse| and on privileged procedure evidence, as said in chapter three of the Evidence Ordinance (New Version) 5731-19716. (b) For the purpose of summoning witnesses and,of taking evidence, the president of the court shall have the powers which a district court has in a civil matter; in connection with the implementation of orders and contempt of court, an order of the court shall be treated like the order of a district court on a civil matter.

38. The president of the court may - upon application by the controller or by Extensions any interested person — extend any time set by this Law, even though it has elapsed, if he finds that there are special reasons for doing so.

39. If a party deems himself injured by a decision of the court, including a Right of decision under section 30 and an interim order, or by a temporary permit issued by appeal the president of the court under^ection 13, he may appeal against it before the Supreme Court within 45 days^from/the day on which he was informed of it; an appeal against an interim or,der/, /against a court decision on an appeal under section 43 or against a temporary permit shall be heard by a single judge, unless the President of the Supreme Court decides otherwise.

40. (a) The court and the president of the court shall proceed in accordance Procedure with the procedure prescribed by the -Minister of Justice under subsection (b); if there is no such procedure, they shall proceed in the manner they find most effective for reaching a just and quick decision. (b) The Minister of Justice may make procedure regulations - (1) for hearings before the court or the president of the court, including instructions on — (a) persons and organizations entitled to speak for one of the parties, or entitled to be respondents, or who must be heard before a decision is made; (b) the continuity of hearing;

Laws of State of Israel, New Version 18, p. 421, N.V. vol 2, p. 19.

147 (c) the payment of costs, of attorneys' fees and of compensation for the time of witnesses; (d) court fees; (2) for hearings before the Supreme Court on appeals under section 39.

CHAPTER SIX: THE FUNCTIONS AND AUTHORITY OF THE CONTROLLER OF RESTRICTIVE BUSINESS PRACTICES

The 41. (a) The government shall appoint a Controller of Restrictive Business controller Practices from among the staff of the Ministry of Industry and Trade. (b) An announcement of the appointment shall be published in Reshumot.

Register and 42. (a) The controller shall keep a register of applications for restrictive publication arrangements and of restrictive arrangements that have been approved, a register of in Reshumot temporary permits that have been issued, a register of exemptions issued under section 14, a register of company amalgamations which have received the controller's agreement or the court's approval, and a register of monopolies. (b) Registers shall be open to public inspection; however, the court may order that a certain item not be open to public inspection, if it concludes that this should be done out of considerations of national security, foreign relations or some other vital reason, including any person's interest in a commercial secret. (c) The controller shall publish in Reshumot notifications of decisions by the court and of decisions by the Supreme Court on appeals against them on the following subjects: (1) approval of a restrictive arrangement under section 9; (2) decision on appeal in connection with company amalgamations, under section 22; (3) instructions to monopolists under section 30.

Controller's 43. (a) The controller may determine whether-- determination (1) an existing arrangement, or an arrangement which parties intend to reach, constitutes a restrictive arrangement; (2) a policy set or recommended by a business association, or one which a business association intends to set or recommend, constitutes a restrictive arrangement; (3) the conditions of section 17 hold true for an amalgamation of companies; (4) a concentration group constitutes a monopolist. (b)Notification of the controller's determination shall be delivered to the parties to the restrictive arrangement, to the parties to the amalgamation of

148 companies, and to the monopolists, as the case may be, and he may also publish it in Reshumot; if the controller is of the opinion that the public interest requires publication, he shall publish the determination in Reshumot and in two daily newspapers, 30 days after the notification has been delivered. (c) If a person to whom notification was delivered under subsection (b) disagrees with the determination or with any part of it, he may appeal against it before the court within 30 days of the day on which notification thereof was delivered to him. (d) Having heard the parties, the court may approve, cancel or change the controller's determinations. (e) In any legal proceeding the controller's determination shall be a priori proof of whatever is determined by it. (f) Use by the controller of his powers under this section, or his abstention from using them, shall be no hindrance to suing any person who has violated any of the provisions of this Law.

44. The controller shall apply to the court to use its powers under sections 25,30 Controller's or 31, as the case may be, if he finds that - - application to the court (1) there are reasonable grounds for suspicion that an amalgamation of companies, carried out in contravention of the provisions of this Law, will significantly injure competition in that branch of the economy, or will injure the public in one of the ways enumerated in section 21(a); (2) the public will suffer injury in one of the ways enumerated in section 30(1) to (4), in consequence of the existence of the monopoly; (3) the injury said in paragraph (2) cannot be prevented by instructions to the monopoly, but only by its dismemberment, as said in section 31.

45. (a) The controller or a person so empowered by him may, if he reasonably Search and believes that doing so is necessary in order to assure implementation of this Law or seizure to prevent the contravention of its provisions -- (1) enter and conduct a search in any place in which a business is conducted; however, he shall not enter a place which serves as a residence without a search warrant from an authorized court; the provisions of sections 26 to 29 of the Criminal Procedure Ordinance (Arrest and Search) (New Version) 5729-1969 7 shall apply, mutatis mutandis, to a search under this paragraph; (2) seize any article, as defined in the said ordinance, in respect of which there are reasonable grounds to assume that it may serve as evidence in a trial of the said contravention.

7 Laws of the State of Israel, New Version 12, p. 284, L.S.I. N.V. 2, p. 30.

149 (b) An article seized under subsection (a) may be held until the court, with which a charge sheet on the contravention connected with that article is filed, decides what shall be done with it; if an aforesaid charge is not filed within 60 days from the day of the seizure, the article shall be returned; if there is doubt to whom to return it, then the magistrate's court within whose jurisdiction the article was seized shall decide upon application by the person who claims that right, or upon application by the controller or by a person so empowered by him.

(c) If the document of a person was seized under subsection (a), then whoever seized it shall enable that person, upon his request, to photograph the document. (d) Whoever holds an article seized under subsection (a) shall treat it the way its owner would; if he fails to do so and the article is damaged or destroyed, compensation shall be paid to its owner by the State Treasury. (e) A magistrate's, court, within whose jurisdiction an article was seized, may -- upon application by the controller or by a person so empowered by him or upon application by the person who claims a right in the article - order that the article be delivered to the person who claims the right or to some other person or that it be treated in some other manner prescribed by the court, all on conditions to be determined. 46. (a) The controller or a person so empowered by him may interrogate any person about a violation of this Law; the provisions of sections 2 and 3 of the Criminal Procedure Ordinance (Testimony)8 shall apply to the interrogation. (b) Upon a demand by the controller or of a person so empowered by him, every person must deliver to him the information, documents, books and other documentation which, in the controller's opinion, will assure or ease the implementation of this Law. (c) The provisions of sections 45(b), (c), (d), and (e) shall apply, mutatis mutandis, to the retention and return of documentation delivered under subsection (b).

CHAPTER SEVEN: PENALTIES AND RELIEF 47. (a) Any person who committed one of the following - (1) he was a party to a restrictive arrangement which was not lawfully approved, and for which no temporary permit or exemption under section 14 was issued; (2) he did not comply with one of the conditions subject to which the restrictive arrangement was approved, or subject to which a temporary permit or exemption was issued, as the case may be;

8 Laws of Palestinee Vol A, p. 439. (3) he did not make notification of an amalgamation of companies, or he performed an act which constitutes partial or complete amalgamation, in contravention of the provisions of Chapter Three; (4) he did not comply with a condition set in the approval of the amalgamation; (5) he acted in contravention of an instruction issued under section 30, or of an order issued under sections 25 or 31; (6) he violated an order issued under sections 35 or 36; shall be liable to imprisonment for two years, or to a fine ten times the amount of the fine said in section 61(c) of the Penal Law (hereinafter, additional fine) for every day during which the contravention continued, and if the contravention was of paragraphs (1) to (3) -- for every day during which the contravention continued after delivery of the controller's notification under section 43; if he is a body corporate -- double the fine or the additional fine, as the case may be. (b) A person who contravened any other provision of the law shall be liable to imprisonment for one year, or to a fine ten times the amount of the fine said in section 61(a)(3) of the Penal Law, 5737-19779 and to an additional fine for every day during which the contravention continued; if he is a body corporate - double the fine or the additional fine, as the case may be.

48. If an offense under this Law was committed by a body of persons, then every Responsibility person who, at the time the offense was committed, was an active director, partner of body of persons — except for a limited partner - or a ranking managerial employee responsible for that sphere, shall also be charged with the offense, unless he proves that the offense was committed without his knowledge and that he took all reasonable steps to assure observance of this Law.

49. It shall be a sufficient defense for an. employee or agent who is accused of an Defense offense under this Law, if he proves that he acted in the name of his employer or principal and in accordance with his instructions, and that he believed in good faith that his act did not constitute an offense against this Law.

50. Any act or omission in contravention of the provisions of this Law shall Civil wrongs constitute a civil wrong under the Civil Wrongs Ordinance (New Version)10.

CHAPTER EIGHT: MISCELLANEOUS PROVISIONS

51. The minister is charged with the implementation of this law and he may - Implementa-, tion and with the approval of the Knesset Economic Committee - make regulations on any regulations matter connected with its implementation.

9 Sefer Ha-Chukkim 5737, p. 226; PenoLaw 5737-1977, L.S.I. Special Volume. 10 Laws of theState of Israel, N.V. 10, p. 266.

151 Exemption 52. The minister may, after consultation with the Knesset Economic Committee, exempt a restrictive business practice from all or some provisions of this Law, if he believes that to be necessary for reasons of foreign policy or national security.

hereinafter: the) 5719-1959״ Repeal 53. The Restrictive Business Practices Law previous Law) is repealed.

Effect 54. This Law shall go into effect three months after publication.

Transitional 55. (a) A restrictive arrangement which was approved under the previous law provisions or a temporary permit issued under the previous law shall be deemed to have been made under the provisions of this Law. (b) If the Restrictive Trade Practices Practices Council began hearings under the previous law before this Law went into effect, it shall conclude the hearings under the previous law even after this law has gone into effect.

Publication 56. This Law shall be published in Reshumot within 30 days of its passage.

YITZCHAK SHAMIR Prime Minister ARIEL SHARON Minister

" SefcrHa-Chukkim51\9,p. 152;L.S.I.vol 13,p. 159;Sctcr Ha-Ctwkkim5733,p. 148 LSI vol27 p. 164.

152 (No. 56) KNESSET MEMBERS (IMMUNITIES, RIGHTS AND DUTIES) (AMENDMENT NO. 5) LAW, 5748-1988*

1. After section 13 of the Knesset Members (Immunities, Rights and Duties) Addition of Section 13a Law, 5711- 1951', there shall come: through I3e Prohibition of 13a. (a) A membeer of the Knesset shall not engage in any Additional business or additional occupation unless the occupation is Occupation peermitted or hee has received a permit from the Permits Committee. (b) For the purposes of this Secction - "engage" - whether by himself or in partnership with another, including an imployee or agent; "additional occupation" means - (1) an occupation additional to that of member of the Knesset, including a one-time occupation, representation of another person, consultation, or lobbying activity on his behalf, all for either monetary payment or other material considerations; (2) service as the head of a local authority or as the chairman of a government authority, corporation or institution; (3) any other permanent position in which there is a conflict of interests between the Knesset member's role as a member of the Knesset and the other position. "Permitted Occupation" means an occupation in an area subject to intellectual property rights and where all the provisions of section 13c(a) have been fulfilled. (c) For the purposes of this section provision of a vehicle, office, office services and telephone services to the Knesset member shall be deemed as tangible recompense; however, the following shall not be deemed material consideration.

Passed by the Knesset on 11th Av 5748 (25th July 1988) and published in Sefer Ha-Chukkim No. 1258 of 12th Av 5748 (26th July 1988), p. 140; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1869 of 5748, p. 122. Sefer Ha-Chukkim 5711, p. 228; L.S.I, vol. 5, p. 149; 5746, p. 36, L.S.I, vol. 40, p. 38.

153 (1) the provision of a vehicle to a Knesset member holding public or party office for the purpose of that office and for his private use, provided that the Knesset member has made his monthly payments to those providing the vehicle, of the value of the use of the vehicle, at a rate determined by the House Committee of the Knesset, which shall be entitled to determine classes and set conditions in this regard;

(2) the provision of a vehicle, office, office services and telephone services to a Knesset member provided that they serve the need of a public or party position, or the reimbursement of actual expenses incurred by the Knesset member in a normal manner for the purposes of that position. (d) The following shall not be considered as being engaged in a business or additional occupation - (1) the holding only of shares in a corporation; (2) administration of the assets of the Knesset member or of his family. (e) This section shall not apply during the first nine months of the term of office of a member of the Knesset, provided that immediately prior to that period he did not hold office as a member of the Knesset. Permits 13b. A Permits Committee comprised of three shall be Committee established, which shall be appointed by the Speaker of the Knesset within thirty days of his election; the committee shall serve for the term of office of that Knesset, and its members shall be: a retired Supreme Court judge, who shall be the chairman, and two retired members of the Knesset. Permit for 13c. (a) The Permits Committee shall not give a member of the Additional Occupation Knesset a permit for an additional occupation unless he has proven, to its satisfaction, that all of the following have been fulfilled: (1) The additional occupation will not detract from the honor of the Knesset, from his standing as a member of the Knesset or from his obligations as a member of the Knesset;

154 (2) The additional occupation is temporary and is not such as to encroach upon the time necessary for him to carry out his role as a member of the Knesset; (3) There is not and there can be no possibility of conflict of interest between the fulfillment of his role as a member of the Knesset and the additional occupation; A (4) The additional occupation will not raise any suspicion will not raise any suspicion of obtaining improper or unfair advantage or preference as a result of his being a member of the Knesset.

(b) The Ethics Committee shall consist of four members of the Knesset whom the Speaker of the Knesset shall appoint, for the term of office of that Knesset, taking into account, inter alia, the factional composition of the Knesset, and he shall appoint its chairman from among its members. (c) The Ethics Committee - (1) shall determine for itself its methods of operation and the procedures for its deliberations; (2) shall not be subject to the rules of evidence and shall act in the manner it sees most effective for clarifying those complaints brought before it. (d) Where the Ethics Committee has determined, by a majority vote of its members, that a member of the Knesset has breached the provisions of subsection (a), it is entitled to impose on him one of the following: (1) notification (2) warning; (3) reprimand; (4) exclusion from sittings of the Knesset plenum and its committees for a period that shall not exceed six months provided that the Knesset member shall be permitted to enter the sitting solely for the purpose of .voting. (e) The Ethics Committee shall not impose exclusion as stated in subsection (d)(4) in the following instances: (1) Where the Knesset member carried out an additional occupation in circumstances in respect of which the Permits Committee would be entitled to grant a permit were the member to have requested it or which it was prevented from granting solely by virtue of the nonfulfillment of the provisions of section 13c(a)(2); (2) Where the Knesset member breached any condition of the permit grnated him by the Permits Committee.

(f) In addition to that provisions of subsection (d)(1) through (3), or in place thereof, the Ethics Committee is entitled to publish its decision, in full or in part, in the manner in which it shall direct, with or without indicating the name of the Knesset member; where the committee has decided as stated in subsection (d)(4) - it shall publish the decision indicating the name of the Knesset member. Ethical 13e. The House Committee of the Knesset shall be empowered to Principles establish ethical principles for members of the Knesset; ethical principles set by the House Committee of the Knesset prior to the commencement of the Knesset Members, (Immunity, Rights and Duties) (Amendment No. 5) Law, 5748-1988, shall be deemed to have been issued under the powers of this section, to the extent that they do not contradict that stated in sections 13A through 13D.

Amendment 2. In section 8 of the Knesset Members (Emoluments) Law 5749-1949 2, in the Members"56' concluding passage, shall come: "Where a member of the Knesset also holds a (Emoluments) public or party possition, the provision of a vehicle for the purposes of that position Law in addition to his private use shall not be deemed a form of remuneration, if the matter is carried out in conformity with the provisions of section 13a of the Knesset Members (Immunities, Rights and Duties) Law, 5711-1951.

2 Sefer Ha-Chukkim 5749, p. 41; L.S.I, vol. 3, p. 28.

156 3. (a) This Law shall come into force, excluding section 13A on the date of Commencement commencement of the term of the Twelfth Knesset. (b) Section 13A shall come into force on the 1st Elul 5749 (1 September 1989).

YITZCHAK SHAMIR ARYE NEHAMKIN Prime Minister Minister for Agriculture CHAIM HERZOG President of the State

157 (No. 57) PLANNING AND BUILDING (AMENDMENT No. 26) LAW, 5748- 1988* hereinafter) 1965 5725-׳ ,Amendment 1. In section 1 of the Planning and Building Law of section 1 referred to as "the principal Law") - (1) the following definitions shall be inserted after the definition of "road": "engineering technician" has the same meaning as in the regulations under the Engineer and Architects Law, 5718-19582: (2) the following shall be added at the end of the definition of "scheme" and includes the variation, suspension and cancellation of a scheme. 2. The following section shall be inserted after section 1 of the principal Law: Publication 1A. (a) "Publication in a newspaper", for the purposes of m a newspaper. ^ Law, means publication in two daily newspapers in the at least one of which is a widely circulated newspaper referred to in subsection (b) and, in a place where a local newspaper appears at least once a month, publication in the local newspapers as well. In a local planning area where the Arabic- speaking population makes up at least ten percent of the total population, it means one publication in a newspaper published in the Arabic language, one in a newspaper appearing in Hebrew and one in a local newspaper as aforesaid. (b) For this purpose, the Minister of the Interior shall publish in Reshumot every year, after consultation with the union representing a majority of those making publication, a list of the three most widely circulated newspapers in the State in the Hebrew language; publication in one of them shall be regarded as publication in a widely circulated newspaper. (c) Publication shall be made in a special section of the newspaper, set off by a suitable frame, and headlines "Notices in Matters of Planning and Building". Amendment 3. In section 8 of the principal Law, subsection 8 shall be replaced by the of section 8. following subsection:

Passed by the Knesset on 12 Av 5748 (26 July 1988) and published in SeferHa-Chukkim No. 1259 of 13 Av 5748 (27 July 1988), p. 144; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1817 of 5747, p. 168. Sefer Ha-Chukkim of 5725, p. 307; L.S.I, vol. XXIX, p. 330. Sefer Ha-Chukkim of 5718, p. 108; L.S.I, vol. XII, p. 124.

158 (a) The Minister of the Interior shall, for every District Commission, appoint a district planner and a secretary.

4. The following section shall be inserted after section 10 of the principal Addition of Law: section 10A. District 10A. Every District Commission shall have a District Licensing Licensing Authority, consisting of — Authority. (1) the Chairman of the District Commission or a person appointed by the Minister of the Interior, under section 7(a)(1), as his representative; (2) the District Planner; (3) an advocate appointed by the Minister of Justice.

5. In section 11 of the principal Law - Amendment of section 11. (1) in subsection (a), the expression "section 7(10)" shall be replaced by the expression "7(a)( 10)" and the words "One of the subcommissions shall be competent to hear objections, filed under section 100, to a scheme", shall be added at the end. (2) in subsection (d), the words "A member of the District Commission may, within seven days from the day on which the decision is delivered to him, request in writing" shall be replaced by the words "At least two members of the District Commission may, within seven days from the day on which the decision is delivered to them".

6. In section 12 of the principal Law — Amendment of section 12. (1) in subsection (a), the words "except the powers vested in the District Licensing Authority referred to in subsection (c)" shall be added at the end. (2) the following subsection shall be added after subsection (b): (c) !The Licensing Authority for the purposes of a District Planning Area shall be District Licensing Authority referred to in section 10A."

7. In section 18 of the principal Law, subsection (g)(5) shall be replaced by the Amendment following paragraph: of section 18. "(5) the submission of an opinion in respect of an objection under section 106;".

159 Amendment 8. In section 20 of the principal Law - of section 20. (1) the marginal note shall henceforth be read "Engineer and Secretary of Local Commission". (2) subsections (a) and (b) shall be re-marked as subsections (b) and (c), respectively, and the following subsection shall be inserted before them: "(a) A Local Commission shall appoint an engineer for itself, who shall be a licensed engineer or architect under the Engineer and Architects Law, 5718-1958 3, and shall have experience in planning and building. In the case of a local commission under section 18, the engineer of the local authority may be the engineer of the Local Commission."

Amendment 9. In section 28 of the principal Law, subsection (c) shall be replaced by the of section 28. following subsection: "(c) For the purposes of this section, the Planning and Building Subcommittee or the Land Licensing Authority shall be deemed to be the Local Commission."

Replacement 10. Section 30 of the principal Law shall be replaced by the following of section 30. section: Licensing 30. The chairman of the Local Commission or the chairman of the Authority. Subcommission of the Local Commission and the engineer of the Local Commission shall together be a Local Licensing Authority for the issue of permits under section 145.

Amendment 11 Section 36 of the principal Law shall be re-marked as section 36(a) and the of section 36. following subsection shall be added thereafter: (b) A special planning area shall have a special Licensing Authority. The Licensing Authority shall consist of the chairman of the Special Commission and the Secretary of the Commission.

Amendment 12. In section 39 of the principal Law, the words "of aLocal Commission" shall of section 39. be replaced by the words "a Local Commission, a District Licensing Authority or a Local Licensing Authority".

Amendment 13. In section 42 of the principal Law, the following subsection shall be added of section 42 after subsection (b): "(c) Notwithstanding the provisions of subsection (a) and (b), a quorum at the meetings of a District, Local or Special Licensing Authority shall be all the members of the Authority. If there is

Sefer Ha-Chukkim of 5728, p. 184; L.S.I., vol. XXII, p. 210.

160 no quorum at the opening of a meeting of a District Licensing Authority, the chairman of the meeting may adjourn it for thirty minutes. After the passage of that time, the meeting shall be legal if attended by two members."

14. In section 44 of the principal Law, the words "or by regulations thereunder" Amendment shall be added at the end. of section 44.

15. In section 77 of the principal Law, the words "and in two daily newspapers" Amendment shall be replaced by the words "and in a newspaper" and the words "the area of the of section 77. projected scheme or variation" shall be replaced by the words "the area of the proposed scheme or variation; publication in a newspaper shall be as specified in section 1A".

16. In section 83 of the principal Law, the words "However, unless the District Amendment Commission otherwise decides, it shall not be necessary to attach a plan to a of section 83. decision for any such cancellation, variation or supervision of a scheme as does not require a variation of the plan of the original scheme" shall be added at the end.

17. Section 89 of the principal Law shall be replaced by the following Amendment subsection: of section 89. (a) A notice of the deposit of any scheme shall be in Reshumot and in a published newspaper. The publication in a newspaper shall be as specified in section 1 A." '

18. In section 103 of the principal Law, paragraph (2) shall be replaced by the Amendment following paragraph: of section 103. (2) in the case of any other scheme - at the offices of the District Commission of the local region in which the scheme is located; a copy of the objection shall be forwarded to the Local Commission concerned.

19. Section 106 of the principal Law shall be replaced by the following Replacement section: of section 106. "106 (a) Where objection has been filed, a Local Commission may, within forty-five days from the day on which the objection was forwarded to it, submit its opinion to the District Commission under section 103. The Local Commission shall send a copy of its opinion to the opponent. (b) A District Commission with which objection has been filed may reject it or may accept the whole or part of it and vary the terms of the scheme as the acceptance of the objection may require; but if the acceptance of the objection may, in its opinion, prejudice a person who, too, is permitted to file objection to the scheme, it shall not decide upon the objection before giving that person a suitable opportunity to be heard.

161 (c) A District Commission with which substantially identical objections have been filed may confine itself to hearing part of the opponents if, in its opinion, they represent the same matter or place. The Commission may decide to refrain from hearing an objection which in effect repeals a previous objection heard by it or which is unfounded or which, prima facie, seems to it troublesome or vexatious. The Commission may also appoint an investigator to hear ׳• objections under section 107A.

Replacement 20. Section 107 of the principal Law shall be replaced by the following of section 107. secti0n: Hearing of 107. The opponent, the proponent of the scheme, and the engineer

objection Qr representative of the Local Commission shall be invited to attend in public. r the hearing of the objection and may state their cases to the Commission. The hearing of the objection shall be in public.

Addition of 21. The following section shall be inserted after section 107 of the principal section 107A. Law

Appointment 107A. (a) In this section, "investigator" means a person

of investigator. whom the Ministry of the Interior has appointed from a list of investigators published in Reshumot, to hear objections to schemes and who is one of the following: (1) an advocate of five years'standing; (2) a licensed engineer or licensed architect under the Engineers and Architects Law, 5718-1958, with experience in planning and building; (3) a person who was chairman of a local or district commission for at least five years; (4) a person professionally trained in matters of planning and building. (b) A District Commission dealing with objections to a scheme may appoint an investigator for the hearing of objections filed therein, if it considers that in view of the number of the opponents or the nature of the objection it is appropriate to do so. Where an investigator is appointed after the Commission has begun to hear the objections, the investigator may rehear objections which have already been heard by the Commission.

4 Laws of Palestine, vol. II, p. [blank].

162 (c) When a District Commission has not appointed an investigator and the Minister of the Interior is of the opinion that it is appropriate to appoint one for a particular scheme, the Minister may appoint an investigator after hearing the opinion of the chairman of the District Commission. (d) The investigator shall submit to the Commission a summary of the objections and his recommendations in respect thereof. The provisions of section 107 shall apply to the hearing of the objections. (e) The Minister of the Interior may, by regulations, prescribe the powers and work procedure and, in consultation with the Minister of Finance, the remuneration of an investigator.

22. Sections 108 and 109 of the principal Law shall be replaced by the following Replacement of sections 10! sections: and 109 and addition of section I09A.

108. (a) The District Commission shall decide to approve a Scheme requiring its approval - with or without variations or on conditions prescribed by it - only after the completion of the hearing of objections, if any, and the decision thereon. (b) Notice of the decision as to objection and of the reasons for it shall be given,'in writing to the opponents and to persons who were heard under section 106. (c) Where p. Scheme requiring the approval of the District Commission has been deposited and objection is not filed within the period prescribed in section 102, the Scheme shall be deemed to have been approved by the District Commission sixty days after the expiration of that period unless the Commission otherwise decides within the said sixty days.

109. (a) Where a District Commission decides to deposit a scheme, it shall refer it to the inspection of the Minister of the Interior for inspection. The Minister may, within ninety days from the date of the deposit of the Scheme, decide that the Scheme requires his approval. If the Minister so decides, he shall, within the said period, notify the District Commission and Local Commission to such effect. (b) Where the Minister decides that a Scheme requires his approval, it shall not be given effect without his approval. The Minister's decision shall be given within ninety days from the

163 day on which the Scheme is submitted to him •for approval. If a decision is not given within that period, the Scheme shall be regarded as having been approved by the Minister. Completion 109A. (a) A District Commission shall decide to approve Dates for or reject a Local Outline Scheme within one year from the date of Dealing with Scheme. the public announcement of the deposit and shall decide to approve or reject a Detailed Scheme within eight months from the date of the public announcement of the deposit. The Minister of the Interior or a person empowered by him on that behalf may extend the periods for an additional two months. (b) Where the District Commission does not decide as aforesaid, the power to examine and approve the Scheme, including the hearing of and decision upon objections, shall pass to a "Scheme Completion Commission" to be appointed for each Scheme as aforesaid by the Chairman of the District Commission within thirty days from the expiration of the period specified in paragraph (a). The Commission shall consist of a representative appointed by the Local Commission -- from among the employees or otherwise — and a representative of the Minister of the Interior designated by the chairman of the District Committee from a list of representatives published by the Minister in Reshumot. The representative of the Minister of the Interior shall be the chairman of the Commission and shall appoint the Secretary of the Commission from among the employees of the Local Commission. (c) The Scheme Completion Commission shall continue the proceedings for the examination and approval of the Scheme from the stage which the District Commission has reached.

Amendment 23., In section 111 of the principal Law, the words "and may" shall be replaced of section 111. by the words "Two members of the Commission may jointly" -- and the closing passage, beginning with the words "fifteen days," shall be replaced by the words "thirty days from the date of the approval of the Scheme by the District Commission; the objector shall send a copy of the objection to the Minister of the Interior." Repeal of 24. Sections 112 and 113 of the principal Law are hereby repealed. sections 112 and 113. Addition of 25. The following section shall be inserted after section 119: section 119A. Duty to give 119A. A Local Commission shall give every person interested information. in any land, in writing, on his application, information as to the Schemes relating to the land, whether they are in force or on

164 deposit or whether notice of their preparation has been published under section 77, and also as to conditions under section 78, if any, applying to the land. The Commission shall also give information as to liability to the payment of a betterment charge.

26. In section 122 of the principal Law, the following shall be added at the end Amendment of paragraph (4): "However, the District Commission may prescribe that the of section 122. decision as to the rights of the owners of plots included in the Detailed Scheme prepared under this article shall be entrusted to an arbitrator agreed upon by the owners of the plots and the Local Commission. If the owners of the land and the Local Commission do not agree upon an arbitrator, the District Commission shall appoint him. The arbitrator appointed, whether by appointment or not, shall determine his remuneration and those liable for its payment. He shall give reasons for his decision as to the said rights if the District Commission or one of the parties so demands. The provisions of the Arbitration Law, 5728-1968 ', shall apply to the arbitration, subject to the provisions of this section.

27. In section 125 of the principal Law — Amendment of section 125 (1) the words "under a Detailed Scheme" shall be added at the end of the marginal note; (2) the words "from the day on which a copy of the said Scheme is transmitted to him" shall be replaced by the words "from the day on which a Scheme eligible for registration under the Surveys Ordinance 2 and the Land Law, 5729-1968 3, conforming to the approved repartition scheme, is transmitted to him.

28. In section 134 of the principal Law, the words "under any law" shall be Amendment replaced by the words "under any law, a plan eligible for registration under the of section 134 Surveys Ordinance and the Land Law, 5729-1969, conforming to".

31. In section 145 of the principal Law - Amendment of section 145 (1) the words "or Local Licensing Authority", as the case may be,shall be inserted after the words the "Local Commission", wherever occurring. (2) subsection (b) shall be replaced by the following subsection: (b) An application under subsection (a) shall be submitted to the Local Licensing Authority, which shall only issue the permit if the work or use for which the permit is requested conforms to the scheme and to other regulations under this Law which apply to the building or land concerned. The Local Licensing Authority

Sefer Ha-Chukkim of 5728, p. 184; L.S.I, vol. 22. p. 210. Laws ofPalestine, vol. B, p. 1368. Sefer Ha-Chukkim of 5729, p. 259; L.S.I., vol. XXIII, p. 283.

165 may forward the application for discussion to the Local Commission. (3) the following subsection shall be added after subsection (c): (d) Subject to the provisions of any law, where a planning agency has approved an application for a permit and the preconditions prescribed by the planning authority have been fulfilled, the issue of the permit shall not be delayed if all the requirements of the Law and the regulations have been fulfilled in respect thereof and the fees, charges and other payments, except for municipal rates, payable under any enactment in respect of the property to which the permit relates have been paid or appropriate guarantees for their payments have been given. The Local Commission shall notify the applicants, within fourteen days from the day on which he so requests, of the particulars of the aforesaid indebtments. (e) The engineers of a Local Commission may, for the purpose of adjustment, as the Minister of the Interior may prescribe by regulations, authorize such changes in the permit necessary in the course of the execution of any work thereunder. Replacement 32. (a) Section 146 of the principal Law shall be replaced by the following of section 146 section: Non-confor- 146. (a) The Local Commission may permit non- ming use. conforming use. (b) A permit for non-conforming use which has not been permitted by any scheme or other regulation under this Law requires approval by the District Commission. The District Commission shall give its decision within 120 days from the date on which the Local Commission's approval is brought to its knowledge. If the District Commission does not give its approval within 120 days, the application shall be regarded as approved provided that its objection to it has been filed.

Amendment 33. In section 147 of the principal Law, the words "or in respect of construction of section 147 for the purposes of education, cultural purposes, science, charity, welfare, sport or the provision of shelters" shall be added at the end.

Amendment 34. In section 149 of the principal Law - of section 149 (1) in the marginal note, the word "conditions" shall be replaced by the word "preconditions"; (2) in paragraph (1), the words "in three daily newspapers" shall be replaced by the words "in a newspaper" and the following shall be added at the end: "The chairman of the District Commission may exempt a particular application or particular classes of applications from the duty

166 of publication in a newspaper, wholly or in part, if he is satisfied in the• circumstances of the case such publication is not necessary. Publication shall be as provided in section 1A."; (3) in paragraph (2), the words "the notice has been posted up" shall be replaced by the words "a notice stating the nature of the application referred to in paragraph (1) has been posted up"; (4) the following paragraphs shall be inserted after paragraph (2): (2A) the Local Commission has, at the expense of the applicant, delivered a notice stating the nature of the application and the time for filing the objection with the Local Commission to -- (a) all the owners and occupiers of the land or building in respect of which the application has been filed. (b) all the owners and occupiers of any land or building abutting on the land or building in respect of which the application has been filed; (c) all the owners and occupiers of any land or building who in the opinion of the Commission will or may be affected by the approval of the application. the notice shall be delivered or sent to the known addresses of the owners and occupiers. (2B) in the case of an application relating to a site included in an approved or deposited scheme as intended for conservation - the Commission has delivered a notice as referred to in paragraph (2 A) to the public and professional bodies approved under section 100(3).

35. Section 151 of the principal Law shall be replaced by the following Replacement of section 151. section: Considerable 151. (a) A relaxation or a permit for non-conforming use

deviation. sha!i not be granted jf !t involves a considerable deviation from a Scheme applying to the land or building. (b) An addition of building percentages beyond those fixed in a Scheme deposited after 24 Adar I 5749 (1 March 1989) is a considerable deviation. The Minister of the Interior may, in consultation with the National Board, prescribe by regulations what else is to be regarded as a considerable deviation for the purposes of this section.

167 ־- Amendment 36. In section 152 of the principal Law of section 152. (1) the subsection-mark "b" shall be inserted after the section-mark "152" and the following subsection shall be inserted before subsection (b): (a) A person aggrieved by the refusal of the Local Licensing Authority to grant a permit under this chapter may object to the refusal before the District Licensing Authority within thirty days from the day on which he is notified of the refusal of the Local Licensing Authority. If the Authority does not decide upon the application within the time prescribed in section 157, this shall be regarded as a refusal. The decision of the District Licensing Authority shall take the place of the decision of the Local Licensing Authority and shall be final. If the District Licensing Authority does not decide within three months, the provisions of section 157 concerning referral of the application to the District Committee shall apply.

(2) in subsection (b), the words "under this chapter" shall be repiaceu by the words "under sections 146 and 147".

Amendment 37. In section 153 of the principal Law, subsection (a) shall be replaced by the of section 153. following subsection: (a) "The applicant for the permit, the opponent to the permit and the representatives of the Local Licensing Authority or the representative of the Local Commission, as the case may be, shall be summoned to the hearing of the objection, and when they have appeared, the hearing shall be held in their presence, and they may state their cases to the District Licensing Authority or the District Commission, as the case may be."

Amendment 38. In section 157 of the principal Law, subsection (a) shall be replaced by the of section 157. following subsection: (a) "Where a Local Licensing Authority or a Local Commission, asthe case may be, does not decide upon an application to grant a permit under this chapter within three months from the date of its submission, the applicant may submit his application to the District Licensing Authority or the District Commission, as the case may be, which shall decide upon it within a further three months".

Addition of 39. The following chapter shall be inserted after section 158F: Chapter 5 "B". Applications 158G. (A) A Local Licensing Authority shall decide upon abridged" by an application for'a permit within sixty days from the date of proceedings. its submission if the following conditions are not fulfilled: (1) The application was drawn up and signed by an engineer or architect whose name is included in the

168 Register of Authorized Persons referred to in section 158L(a), it indicates the name of the engineer responsible for the execution of the work and is accompanied by the documents designated by regulations, each signed by a person authorized to sign it under any law; (2) the application for the permit relates to residential construction, with or without shops at street level; (3) the application conforms with and does not deviate from the Law and the regulations thereunder and the Schemes applying in the area, and it also conforms with the conditions and requirements under section 158H; (4) notwithstanding the provisions of paragraph (1), in the case of a simple structure within the meaning of the Engineers and Architects Regulations (Licensing — Reservation of Acts), 5727- 1967', the application referred to in paragraph (1) may be drawn up and signed by an engineering technician whose name is included in the Register of Authorized Persons and may indicate the name of the engineering technician responsible for the execution of the work; the application shall be accompanied by the documents specified in paragraph (1) as far as they are required in the case of a simple structure, each drawn up and signed by a person authorized to sign them under any law.

(b) A permit issued under this chapter is conditioned on the particulars, documents, approvals and declarations and all the appendices to the application being correct, and a signature certifying its correctness shall be regarded as a signature to an affidavit within the meaning of the Evidence Ordinance (New Version), 5731-19712, on which the requested changes, amendments, supplements and clarifications were submitted. Transferor 1581. An applicant for a permit who has not received a reply to power to nj application or whose application was refused within the District rr Licensing time mentioned in 158H may, on the expiration of fourteen days

Authority. me said lirne> m^ not iater me expiration of three months therefrom, apply to a District Licensing Authority. For the purposes of the decision as to the grant or the permit, the District Licensing Authority shall have all the power of the

1 K.T. of 5727, p. 2400; K.T. of 5747, p. 1076. 2 Dinei Medinat Yisrael (Nusah Hadash) , No. 18, p. 420; NV vol. II, p. 198. Local Licensing Authority and shall be competent also to direct the return of the hearing to a Local Licensing Authority; but the District Licensing Authority shall not give its decision before having given the Local Licensing Authority an opportunity to explain its position as to the application. The District Licensing Authority shall give its decision within sixty days from the date on which the application is transferred to it.

Transfer of 158J. (a) The Minister of the Interior shall establish a list of power to persons with professional training and experience in matters expert. of planning and building (hereinafter referred to as "experts"). (b) If a District Licensing Authority does not give its decision within sixty days from the day on which the application is transferred to it under section 1581, the chairman of the District Commission shall, at the request of the applicant for the permit, appoint an expert to decide upon the application within sixty days from the day on which the application is transferred to him. (c) The powers of the expert shall be the same as those of the District Licensing Authority under section 1581. List of 158K. (a) The Minister of Labor and Social Affairs architects, engineers and shall appoint a person to keep a register containing lists of engineering engineers, architects and engineering technicians who, under any technicians. law, are authorized to draw up and sign applications for building permits (such register hereinafter referred to as the Register of Authorized Persons). A copy of the Register of Authorized Persons shall be forwarded to the District Commission and Local Commission. A person registered in the Register of Authorized Persons may submit an application for a permit by abridged proceedings under this chapter.

(b) Any engineer, architect or engineering technician may file an objection with the Magistrates' Court to his non-inclusion in the Register. (c) Any engineer, architect or engineering technician who gives a certificate or signs a document which is not correct or contains any inexact particulars as to anything relating to an application for a permit or in connection with an act thereunder shall have his name deleted from the Register of Authorized Persons either permanently or temporarily.

(d) (1) The Minister of Labor and Social Affairs shall, in consultation with the Minister of Justice, empower a person to direct a deletion from the Register of

170 Authorized Persons under subsection (c). A person as aforesaid shall be a member of the State Service; he shall be professionally trained in matters of training and \ building or shall be an advocate of at least five years' standing. Where a committee is appointed for the purpose of deletion as aforesaid, its members shall be professionally trained as aforesaid, but part of them need not be members of the State Services. (2) A deletion from the Register of Authorized Persons shall be made at the written request of the chairman of a Local Commission, on the application of the Attorney- General or his representative or on the application of a person empowered in that behalf by the Minister of the Interior. (3) A person appointed under section (1) shall not decide upon a deletion before he has given the person likely to be affected thereby an opportunity to state his case. A reasoned decision as to the deletion shall be delivered to the engineer, architect or engineering technician concerned, who may appeal against it to the Magistrates' Court. (4) The court shall be competent to confirm or annul the decision or to prescribe a different date for the deletion from the Register of Authorized Persons. (5) The deletion shall come into force on the expiration of thirty days from the date on which the person affected is notified thereof. The court may postpone the deletion for a reason which shall be recorded. (c) The Minister of Labor and Social Affairs may, in consultation with the Minister of the Interior, make regulations as to the modes of keeping the Register of Authorized Persons, the particulars of registration therein and deletion therefrom.

40. In section 208 of the principal Law — Amendment of section 208 (1) in subsection (a)(8), the words "the engineer in charge of operations" shall be replaced by the words "the engineer or engineering technician in charge of operations". 41. In section 219 of the principal Law, subsection (d) shall be replaced by the Amendment following subsection: of section 219.

(d) For the purpose of this section, "value of structure or addition" means the vacant value thereof on the date of the commission of the

171 offense or on the date of the decision of the court, whichever is the greatest.

Amendment 42. In section 223 of the principal Law, the words "unless the court otherwise of section 223. directs for special reasons which shall be recorded".

Addition 43. The following section shall be inserted after section 256 of the principal of section 256A. Law: Fee in dispute. 256A. Where a disagreement arises as to the payment of a. fee under this Law or the regulations thereunder and as to the mode of its calculation, the person liable shall pay what he has been asked to pay and may apply to the competent court, which shall decide the dispute.

Amendment 44. In section 265 of the principal Law -- of section 265. (1) in paragraph (17), the word "information" shall be inserted after the word "permits"; (2) the following paragraphs shall be inserted after paragraph (30): (31) Rules for calculating the areas of building plots for purposes of licensing and planning, the permitted percentages of building, the height of buildings and the number of storeys; (32) Rules as to the supervision and inspection of building sites and reports on the carrying out of work. Addition of 265A. The Local. Authorities (Interest and Linkage Differentials section 256A Linkage of on Compulsory Payments) Law, 5740-1980 \ shall apply to certain payments under sections 69( 12) and 122(3) of the Law, and for this payments. purpose a local Planning and Building Commission shall be deemed to be a local authority, and the said payments shall be deemed to be compulsory payments within the meaning of that Law.

Amendment 46. In the First Schedule to the principal Law - of First Schedule. (1) the following section shall be inserted after section 11: Roads 11 A. Notwithstanding the provision of section 6, the Scheme Committee shall not refrain from approving roads schemes laid down in a National Roads Outline Scheme, or in some other Outline Scheme, in a Detailed Scheme derived therefrom, but it may, within ninety days from the day on which a scheme is submitted to it for approval, make its approval conditional on a change of the alignments to an extent of up to 750 meters on each side, from the axis of the road in the scheme if such is necessary for the preservation of the agricultural land provided that no substantial

Sefer Ha-Chukkim of 5740, p. 46; L.S.I., vol. XXXIV, p. 47.

172 change in the scheme is involved. If it does not do so within the said ninety days, the submitted scheme shall be regarded as approved by the Committee."; (2) in section 12(b), the figure "11 A" shall be inserted after the figure "6". (3) section 14 shall be remarked as section 14(a), the words "subject to the provisions of subsection (b)" shall be inserted after the words "provided that" appearing thereon, and the following subsection shall be added after subsection 14(a): (b) Where, in an objection under section 11 A, the opponent is a State agency, the objection shall be heard before an Objection Committee, and the provisions of section 12 shall apply."

47. In the Third Schedule of the principal Law -- Amendment of Third (1) section 1 (b) is repealed; Schedule. (2) section 4(3) is repealed; (3) in section 19(c)(2), the words "shall not be regarded as a realization of rights" shall be replaced by the words "or which may be enlarged under a Scheme shall not be regarded as a realization of rights and the obligation to pay a charge shall not apply in respect thereof."

48. In the Local Authorities (Legal Advice) Law 5736- 1975 1 in section 6, the Amendment, of Local words "a local licensing authority under section 30 of the said Law" shall be Authorities inserted after the words "the planning and building subcommission". (Legal Advice) Law.

49. In the Land Law, 5729-1969, section 110(b)(1) shall be replaced by the Amendment following paragraph: of Land Law. (1) a scheme finally approved under the Planning and Building Law, 5725-1965.

50. Where before the coming into force of section 46(2) a cautionary note in Validation. accordance with the provisions of section 4(3) of the Third Schedule to the principal Law, as in force before its amendment by this Law, was not entered, this shall not affect the legality of the assessment made according to the Third Schedule or the obligation to pay a betterment charge thereunder.

51. (a) Sections 32, 43 to 45 and 47 shall come into force on the date of Commencement. publication of this Law (hereinafter referred to as "the date of publication").

1 SeferHa-Chukkim of 5736, p. 23; L.S.I., vol. XXX, p. 25.

173 (b) This Law, except sections 32,43 to 45 and 47, shall come into force on the expiration of six months from the date of publication.

Transitional 52. The provision of section 41 shall apply also to a fine imposed for an offense provision. committed before its coming into force unless a final judgement has been given in respect thereof.

Publication. 53. This Law shall be published within thirty days from the date of its adoption by the Knesset.

YITZCHAK SHAMIR YITZCHAK SHAMIR Prime Minister Prime Minister and CHAIM HERZOG Minister of Interior President of State

174 (No. 58) ACQUISITION FOR PUBLIC PURPOSES (AMENDMENT OF PROVISIONS) (AMENDMENT No. 7) LAW, 5748-1988*

1. In section 9 of the Acquisition for Public Purposes (Amendment of Amendment .hereinafter referred to as "the principal Law"), the of section 9) 5724-1964׳ ,Provisions) Law words "13 Nisan 5748 (31 March 1988)" shall be replaced by the words "9 Nisan 5753 (31 March 1993)".

2. An entitled person who was paid compensation as provided in section 8 of the Transitional principal Law after 13 Nisan 5748 (31 March 1988) and before the date of provision. publication of this Law shall be paid an additional amount as if section 1 had come into force on the said day, with the addition of linkage differentials and interest under section 8 of the principal Law from the day on which the compensation was paid to him to the day of the actual payment of the additional amount.

YITZCHAK SHAMIR MOS HE NlSSIM Prime Minister Minister for Finance CHAIM HERZOG President of State

' Passed by the Knesset on 12 Av 5748 (26 July 1988) and published in Sefer Ha-Chukkim No. 1259 of 13 Av 5748 (27 July 1988), p. 155; the Bill and an Explanatory Note were published in Hatza'ot ChokNo. 1883 of 5748, p. 188. 1 Sefer Ha-Chukkim 5724, p. 122; L.S.I, vol 18, p. 116, 5746, p. 57, L.S.I, vol 40, p. 57.

175 (No. 59) NEGEV (AMENDMENT No. 2) LAW, 5748-1988*

hereinafter referred to as "the) 5748-1988׳ ,Amendment 1. In section 4(a) of the Negev Law of Section 4. principal Law") - (1) in paragraph (1) the words "or a former member of the Knesset" shall be inserted after the words "a member of the Knesset"; (2) in paragraph (6), the word "ten" shall be replaced by the word "twelve".

Addition of 2. The following section shall be inserted after section 4 of the principal Law: section 4A. Manager. 4A. The chairmen of the Council shall appoint a manager for it."

YITZHAK SHAMIR GAD YAAKOBI Prime Minister Minister of Econimics CHAIM HERZOG President of State

ARIEL SHARON Minister of Industry and Commerce

' Passed by the Knesset on 12 Av 5748 (26 July 1988) and published in Sefer Ha-Chukkim No. 1259 of 13 Av 5748 (27 July 1988), p. 185; the Bill and an Explanatory Note were published in Hatza'ot Chok Nol 1989 of 5748, p. 268. 1 Sefer Ha-Chukkim of 5746, p. 186 - L.S.I., Vol. XL, p. 191; Sefer Ha-Chukkim of 5748, p. 48 - supra p. 41.

176 (No. 60)

PORTS AUTHORITY (AMENDMENT NO. 5) LAW, 5748-1988*

1. The Ports Authority Law, 5721-1961 (hereinafter - the principal Law) shall Amendment be renamed the "Ports and Railways Authority Law, 5721-1961"1. Of Title

2. In section 1 of the principal Law - Amendment of section 1 (1) In place of the marginal heading shall come "Establishment of the Authority"; (2) The contents thereof shall be marked (a), and the words "(hereinafter - the Authority)" - shall be deleted; (3) After subsection (a) shall come: "(b) The Ports Authority shall incorporate the Railways, subject to the provisions of this Law, shall be called the Ports and Railways Authority (hereinafter - the Authority), and shall operate through the Council of the Authority, the director of the Authority and the employees of the Authority; for this purpose, "railway" - shall be as defined in the Railways Ordinance [New Version] 5732-19722 (hereinafter - the Railways Ordinance)."

3. Section 4. of the principal Law shall be replaced by the following section: Amendment of section 4 Functions "4. The functions of the Authority shall be to plan, construct, develop, manage, maintain and effectively operate the ports set forth in the appendix (hereinafter - the Authority's ports) and the railways and to supervise them, and without detracting from the generality of the foregoing - (1) to prepare master plans for the development of the railways and to submit them for the approval of the Government and for the information of the Finance Committee of the Knesset; (2) to accelerate the development of the railway network including within metropolitan areas, in order to promote railway transportation for the transport of goods and passengers; (3) to raise additional resources necessary for the implementation of its functions."

Passed by the Knesset on 12th Av 5748 (26 July 1988) and published in Sefer-Ha-Chukkim 1259of 13th Av, 5748 (27th July, 1988) p. 56; the Bill and an Explanatory Note were published in Hatza'ot ChoJtl877,5748,p. 160. Sefer Ha-Chukkim 5721, p. 145, 216; L.S.I, vol. 15, p.152. Sefer Hukkim 5745, p.!56. Dinei Medinat Yisrael, New Version 23, p. 845; L.S.I. N.V vol.2 p.264

177 Replacement 4. Section 5 of the principal Law shall be replaced by the following section: of section 5 Direction "5. The guiding principle in the activities of the Authority shall be to manage its ports as a whole as well as each individual port and the railways, as self-supporting entities."

Amendment 5. In section 6 of the principal Law - of section 6 (1) In place of the marginal heading shall come "The Council of the Authority and its Composition"; (2) In place of subsection (a) shall come: "(a) The Government shall appoint at the recommendation of the Minister of Transport a Council for the Authority (hereinafter - the Council); the Council shall comprise seventeen members of whom ten shall be drawn from the public and seven from employees of the State, among whom shall be two representatives of the Ministry of Transport, a representative of the Ministry of Finance and representative of the Ministry of Industry and Trade." (3) In subsection (b), the word "the Authority" shall be replaced by the word "the Council" and after "matters relating to ports" shall come "or railways"; (4) In place of subsection (c) shall come: "(c) Among the members drawn from the public shall also be representatives of - the export industry with the largest volume of exports; the workers' organization representing the largest number of workers in Israel; the body with the largest volume of materials transported by railway; other public bodies which have, in the opinion of the Government, a connection with the ports or the railways." (5) In subsection (d), the term "the Authority" wherever occuring, shall be replaced by the term "the Council"; (6) In subsection (e), the term "the Authority" shall be replaced by the term "the Council".

Amendment 6. In section 7 of the principal Law —' of section 7 (1) In place of the marginal heading shall come "Term of Office of Council Members"; (2) The term "the Authority" wherever occuring shall be replaced by "the Council";

178 (3) In place of subsection (a) shall come: "(a) The term of office of a member of the Council shall be three years from the date of his appointment."

(4) Subsection (b) shall be deleted and subsections (c) and (d) shall be marked (b) and (c) respectively.

7. In section 8 of the principal Law, the phrase "member of the Authority" Amendment wherever occuring, shall be replaced by "member of the Council". of section 8

8. Section 9 of the principal Law shall be replaced by the following section: Replacement of section 9 Remuneration "9. A member of the Council shall not receive from the Authority a salary for his services, however a member of the Council appointed from the public shall be entitled to reimbursement of his expenses at a rate and in a manner to be determined by the Council."

9. In section 10 of the principal Law, the term "the Authority" wherever Amendment occuring, shall be replaced by the term "the Council". of section 10

10. In section 11 of the principal Law, the term "the Authority" wherever Amendment occuring, shall be replaced by the term "the Council". of section 11

11. In section 12 of the principal Law, the term "the Authority" wherever Amendment occuring, shall be replaced by the term "the Council". of section 12

12. In section 13(a) of the principal Law, the term "the Authority" Amendment wherever occuring, shall be replaced .by the term "the Council". of section 13

13. In section 14 of,• the/principal Law, the term "the Authority" wherever Amendment occuring, shall be replaced by the term "the Council". of section 14

14. In section 15 of the principal Law: Amendment of section 15 (1) The marginal heading shall be replaced by the heading "Council Procedure"; (2) In subsections (a), (b) and (c), the term "the Authority" wherever occuring, shall be replaced by the term "the Council". (3) Subsection (d) shall be replaced by the following subsection: "(d) The director of the Authority and his deputy shall be entitled to be present at meetings of the Council."

15. In section 15A of the principal Law, the words "from the Council" shall Amendment replace the words "from the Authority", and the words "the Authority shall replace of section 15A the words "the Authority".

16. In section 15B of the principal Law, the words "the Council" shall replace Amendment the words "the Authority". of section 15B

179 Amendment 17. In section 16 of the.principal Law, the words "member of the Authority" of section 16 shall be replaced by the words "member of the Council".

Amendment 18. In section 17 of the principal Law - of section 17 (1) In subsection (a), in place of "the Authority shall appoint" shall come "the Council shall appoint", in place of "with the Authority" shall come "with the Council" and in place of "(hereinafter - the director of the Council)"^:shall come "(in this Law - the director of the Council)". (2) In place of subsection (b) shall come: "(b) The Council shall appoint, after having the recommendation of the director of the Authority brought before it, with the approval of the Minister of Transport, a deputy to the director of the Authority who shall serve as director-general of the railways." (3) In place of subsection (c) shall come: "(c) The Council shall appoint, after having the recommendation of the director of the Authority brought before it, with the approval of the Minister of Transport, the directors of the ports."

Amendment 19. In section 17A of the principal Law — of section 17A (1) In place of the marginal heading shall come "Terms of Office of Directors"; (2) In subsection (a), in place of "the Authority is entitled" shall come "the Council is entitled"; (3) In subsection (b), in paragraph (1), in place of "through the Authority" shall come "through the Council"; in paragraph (2), in place of "with the Authority" shall come "with the Council"; and in place of paragraph (3) shall come: "(3) The Minister of Transport, after consultation with the Council and with the approval of the Government, has determined in a reasoned decision to remove him from his position, at the end of thirty days from the day on which he has so informed the director of the Authority of his determination as stated." (4) After subsection (c) shall come: ' '(d) The term of office of the deputy director of the Authority and of the director of a port shall be five years; the Council is entitled, after having the recommendation of the director of the Authority brought before it, and with the approval of the Minister of Transport, to extend the appointment for further periods."

180 After section 19 of the principal Law shall come: Addition of 19.A (a) Those employees who are to be transferred from section I9A the service of the State to the service of the Authority shall be designated in an agreement between the State, the Authority and the organization representing the largest number of employees of the Authority (hereinafter - agreement for transfer of employees); where an agreement for transfer of employees has been signed, the following provisions shall apply from its commencement date:

(1) An employee of the State who has been designated in the agreement for transfer of employees shall be an employee of the Authority from the date fixed within it; (2) Notwithstanding the provisions of any law, an employee of the State who becomes an employee of the Authority as stated in paragraph (1) shall not be entitled to any retirement benefits as a result of the transfer; (3) Where an employee of the State who becomes an employee of the Authority as stated in paragraph (1) has not adjusted to work in the Authority under the conditions and within the period set in the agreement for transfer of employees, the provisions of paragraph (2) shall not apply to him and his entitlements shall be as determined in the agreement for transfer of employees; (4) Where the Authority has taken upon itself, in the agreement for transfer of employees, to maintain the entitlements of an employee which he had in respect of the State by virtue of the employer-employee relationship in respect of a period of having been an employee thereof, such employee shall not be entitled to claim the fulfilment of those rights from the State. (b) The provisions of a labor agreement between the Authority and the organization representing the largest number of employees of the Authority, relating to employment conditions, changes in manpower levels, salaries and other benefits, shall require the approval of the Minister of Transport and the Minister of Finance, for a period of one year from the date of transfer of the majority of the employees of the , who have been designated to be transferred under the agreement for transfer of employees, from the service of the State to the service of the Authority."

181 Amendment 21. In section 20 of the principal Law -- of section 20

(1) In place of the marginal heading shall come "Regulations"; y (2) In subsection (a), in place of "the Ports Ordinance" shall come "the Ports Ordinance [New Version], 5731-1971 2 (hereinafter - the Ports Ordinance) and the Railways Ordinance". (3) In subsection (b), in place of "under the Ports Ordinance" shall come "as stated" and in place of "to the ports of the Authority" shall come "to the Authority". Amendment 22. In section 21 of the principal Law - of section 21 (1) After subsection (a) shall come: "(aa) In respect of the railways the Authority shall be entitled to propose to the Minister of Transport regulations dealing with the rates for fees to be paid to itself or to others, and with arrangements for the collection and payment of the fees, and, inter alia, for transportation of goods and persons, storage and safeguarding of goods and any other services." (2) In subsection (b), at its end shall come: "and by the Finance Committee of the Knesset". (3) In place of subsection (e) shall come: "(e) The regulations in respect of rates of fees shall be submitted by the Minister of Transport to the Government, or to anyone appointed by it, for approval; where the Government or the one appointed by it has not refused to approve the regulations within sixty days — the regulations shall be deemed to have been approved by the Government." Amendment 23. In section 22 of the principal Law — of section 22 (1) In subsection (a), after "its ports" shall come "and the railways"; (2) In subsection (b), in place of "the Chairman of the Authority" shall come "the Chairman of the Council". Amendment 24. In section 23(a) of the principal Law, in place of "within the meaning of of section 23 section 58" shall come "within the meaning of the said Ordinance". Amendment 25. In section 24 of the principal Law - of section 24 (1) In place of the marginal heading shall come "Performance of Services";

3 Laws of the State of Israel New Version, P. 20, p. 443 Laws of the State of Israel, New Version 20, p.443; L.S.I. vol. 2, p. 234

182 (2) In subsection (a), after "in a port" shall come "or in the railways or in connection with their operation; similarly the Authority shall be entitled, upon the recommendation of the Minister of Transport and with the approval of the Government, to establish corporations under its ownership or to be a partner in corporations with other bodies for the purposes of implementing its functions."; (3) In subsection (c), at its end shall come: "or in the railways".

26. In section 28 of the principal Law, in place of "in respect of which any Amendment payment or fee is due to it" shall come "for the purposes of collection of payment or of sectl0n 28 fee, which the Authority is entitled to receive in respect of them or from their owners."

27. In place of the title "Chapter Four: Management of Authority and Ports" Replacement shall come "Chapter Four: Management of the Authority". of Title

28. In section 29 of the principal Law -- Amendment of section 29 (1) In place of subsection (a) shall come: "(a) The Authority shall determine the functions of the director of the Authority, the deputy director of the Authority and the directors of the ports."; (2) In subsection (b), after "under the Ports Ordinance" shall come "under the Railways Ordinance"; (3) In subsection (c), at its end shall come "Similarly the Authority shall invest the deputy director of the Authority with the necessary powers as stated in respect of the railways".

29. In place of section 32 of the principal Law shall come: Amendment of section 32 Responsibilities 32. Subject to the provisions of section 29 and the decisions of the of the Authority and its director, the deputy director of the Authority and Directors and Deputy Director the directors of the ports shall be responsible to the director of the of the Ports Authority for the implementation of the functions of the Authority and its decisions; the deputy director of the Authority - in respect of the railways, and the directors of the ports - each in respect of the port which he administers."

30. In section 33 of the principal Law Amendment \ of section 33 (1) In subsection (a), in place of "31st December" shall come "31st January", in place of the concluding passage beginning with the words "and budget" shall come "as well as a budget for each of its ports and for the railways and a program and budget for development of its

183 enterprises, ports and the railways for the financial year commencing on the 1st of April of the following year." (2) In subsection (d), at its end shall come: "which shall be given within 60 days from the date on which they were submitted to it."

Amendment 31. In section 34 of the principal Law - of section 34 (1) In the preamble, in place of "its business year" shall come "the financial year"; (2) In paragraph (1), after "and of each of its ports" shall come "and of the railways"; (3) In paragraph (2) in place of "business year" shall come "financial year".

Amendment 32. In section 35 of the principal Law, in place of "of its ports" shall come of section 35 "belonging to it" and after "the development of the ports" shall come "the development of the railways".

Repeal of 33. Section 35B of the principal Law is hereby repealed. section 35B

Addition of 34. After section 41 of the principal Law shall come: section 41A

Transfer of a 41 A. (a) The Government shall transfer to the Authority -- Railway to the Authority 1. Leasing rights in perpetuity in operations property that prior to the commencement of the Ports Authority Law (Amendment No. 5), 5748-1988 (hereinafter - the 5748 amendment) were registered as lands designated for a railway or which were under the management of the Israel Railways; "operations property" for the purpose of this section shall be - (1) Land located in an active existing railway belt under an approved national profile plan; (2) Land located in an existing railway belt under an approved national profile plan and which is necessary for operations within five years of the commencement of the 5748 amendment; (3) Land serving as loading and unloading terminals; (4) Land serving as railway stations, offices and workshops.

2. Rights of ownership of movables and any right or benefit deriving directly from the operation of the railways or which are necessary for their operation, which were held by the State prior to the commencement of the 5748 amendment.

184 (b) In addition to assets which shall be transferred under subsection (a), the Minister of Transport and the Minister of Finance shall determine after consultation with the Israel Lands Administration and with the approval of the Government -- (1) those state lands which are allocated for the development of the railways under an approved national profile plan or which are designated for the combined operations of the railways and other business purposes which shall be transferred to the Authority under a perpetual lease; (2) the payment which the Authority shall pay for the property in accordance with the recommendations of a panel of assessors to be appointed by the Ministers. (c) The payment to be paid in respect of the transfer of property under this section shall be determined in accordance with their value based on their designation. (d) The Government shall transfer to the Authority all rights and authorities held by the Government under agreements, contracts and transactions which were in force in respect of the railways at the time that the 5748 amendment came into force, and from the date that shall be determined in the transfer document these rights and authorities as stated shall be granted to the Authority, and the debts and obligations imposed on the State in the agreements, including agreements relating to tariffs for transport in these contracts and transactions or related to the properties transferred as stated in subsection (a), shall be imposed on the Authority and in respect of these the latter shall come in place of the State in all respects. (e) The Government shall transfer to the Authority all sums allocated to the Israel Railways, as determined in the current budget and the development budget for the railways, up to the end of the financial year in which the commencement of the 5748 amendment occurs. (f) Any claim that was pending on behalf of the State or against it immediately prior to the commencement of the 5748 Amendment in respect of assets, agreements, contracts, transactions or the operation of the railways as stated in subsection (a), and similarly any cause for such claim existing at that time, shall continue to be valid as if the said transfer had not been done. (g) Agreements as stated in this section shall be signed - (1) in respect of assets as specified in subsection (a) paragraph 1, subparagraphs (1), (3) and (4) and paragraph 2 - not later than the end of two years from the commencement of the 5748 Amendment; however, the transfer of control of the said assets.shall be on the date of commencement of the 5748 Amendment; (2) in respect of land as detailed in subsection (a) paragraph 1 (2) - not later than the end of three years from the commencement of the 5748 Amendment; (3) in respect of land as stated in subsection (b) -- not later than five years after the commencement of the 5748 Amendment. (h) The conditions of transfer of the assets, the rights, authorities and benefits shall be determined - if not otherwise provided in this section -- in an agreement between the Authority and the Government with the approval of the Finance Committee of the Knesset, provided that the conditions of the agreement do not contravene the directions in section 5 and 35. If at the date that the 5748 Amendment comes into force, an agreement as stated has not been signed, the Minister of Transport and the Minister of Finance shall determine the sums that the Authority shall pay as advances on account of the sum to be determined in the agreement as stated."

Amendment 35. Section 58 of the principal Law shall be replaced by: of section 59 Terminology 58. In this Law each term shall be interpreted according to its definition in the Ports Ordinance or the Railways Ordinance respectively; however — (1) In respect of the Authority's ports wherever in the Ports Ordinance or any legislation issued thereunder the term "the officer in charge of the ports" appears, it shall be seen as though it states "the Authority". (2) In respect of the railways wherever in the Railways Ordinance or any legislation issued thereunder the term "the director" appears, it shall be seen as though it states "the Authority". 36. In section 59 of the principal Law — (1) In place of the marginal heading shall come "Application of the Ports Ordinance and the Railways Ordinance and validity of appointments made thereunder". (2) After subsection (b) shall come: "(c) Any provision in the Railways Ordinance or in the regulations or in orders issued thereunder that contradicts the provisions of this Law shall not apply to the railways, with the exception of the provisions of section 62. (d) Any appointment or delegation under the Railways Ordinance or under a regulation or order or bylaw issued in accordance therewith, which were in force immediately prior to the commencement of the 5748 Amendment, shall remain in force."

186 37. In section 62 of the principal Law, at its end shall come: Amendment of section 62 "unless determined otherwise in the Railways Ordinance or in the regulations issued thereunder."

38. In place of section 64 of the principal Law shall come: Replacement of section 64

"Status of 64. For the purpose of the following enactments the members of Council Members and the Council and employees of the Authority shall have the status of Employees State employees: of Authority (1) the Penal Code, 5737-1977, sections 2,277-297 4; (2) The Evidence Ordinance (New Version] 5731-1971 s

(3) The Damages Ordinance [New Version]" 6

39. In section 66 of the principal Law — Amendment of section 66 (1) In place of the marginal heading shall come "Affixing of Emblems" (2) In subsection (a), in place of "and its ports" shall come "for the Authority's ports and for the railways."

40. In section 67 of the principal Law, the words "or to afine of II 5,000 Pounds" Amendment - shall be deleted. of section 67

41. In the Railways Ordinance [New Version] 5732-1972 - Amendment of the Railways (1) The words "the General Manager" wherever appearing shall be Ordinance replaced by "the Manager"; (2) In section 1, in place of the definition "Manager General" shall come: "Manager" means - (1) In respect of the Authority's railways - the Authority; (2) In respect of a railway belonging to one other than the Authority or a part of a railway as stated - the person whom the Minister of Transport has appointed by notice in Reshumot." (b) In place of the definition of "railway officer" shall come: ""railway officer" - in respect of a railway belonging to the Authority means an

4 Sefer Ha-Chukkim 5737, p. 226; L.S.I. Special Volume 5 Dinei Medinat Yisrael, Nusach Chadash 10, p. 421 L.S.I New Version, vol. 2 p. 198; Sefer Ha-Chukkim 5740, p.58; L.S.I, vol. 34, p. 13. 5 Laws of the State of Israel, New Version 18.p. 266.

187 employee of the Authority, and in respect of a railway belonging to a person other than the Authority - an employee of such a body as stated." (c) At its end shall come: ""the Authority" means the Ports and Railways Authority in accordance with the Ports and Railways Law, 5721-1961." (3) In section 2, in the opening passage, the words "is any railway operated by the State" - shall be deleted, and paragraph (4) shall be deleted; (4) In section 15, in place of "the State" where ever appearing shall come, "the Authority"; (5) In section 18(d), the words "a person travelling on business of the State" - shall be deleted; (6) In section 20(d), in place of the words "from the right of the State" shall come "from the right of the Authority"; (7) In section 24, in place of "the State" shall come, in every instance, "the Authority"; (8) In section 25, in place of "the State" shall come "the Authority"; (9) In section 43, after "by virtue of the State" shall come "or by virtue of the Authority'' and in place of' 'that the State shall require "shall come "that the State or the Authority shall require"; (10) In place of section 48 shall come:

Operation of 48. The Minister is entitled, after consultation with the Authority Authority* 3"^ w'm me aPProval °f me Government, to approve under conditions which he may determine in general or in a particular instance, the construction, operation and management of a railway, by one other than the Authority." (11) After section 48 shall come: "Cancellation 48A. (a) Where the Minister has found that a railway is fo^operatbn not bein& °Perated t0 nis satisfaction, or having determined that of railway national transportation considerations require it, he may with the bydanoSer°n approval of the Government, issue an order that a railway or part thereof, belonging to the Authority or to one other than the Authority, shall be managed or operated by a person appointed in the order and in accordance with provisions thereof. (b) An order as stated - (1) shall be issued after an opportunity has been given to those concerned to have their claims heard; (2) may revoke any existing right under this Law. (c) Where a right has been revoked as stated, the person from whom it has been !evoked shall be entitled to compensation for the loss of his right in the manner and under the conditions which the Minister shall determine in regulations." (12) Section 49--is repealed; (13) In section 51, after "on the State" shall come "or to the Authority"; (14) In section 56, paragraphs (3) and (4) - shall be deleted, and in paragraph (6), after "State" shall come "or the Authority"; (15) In place of section 57 shall come: Regulations 57. The Authority is entitled to propose to the to A^toority Minister regulations in respect of the operation of a railway and, inter alia, in the following areas: (1) Conditions for travel including liability in respect of damage to passengers and fares to be paid by passengers. (2) Tariffs, classifications and conditions for carriage of goods, parcels, livestock and any other object transported by rail, including liability for their loss, damage or error in delivery, and determination of goods and substances that shall be deemed dangerous. (3) Tariffs and conditions for the storage and safekeeping of good, parcels or livestock and for other services.

42. (a) Notwithstanding the provisions of section 1 (b) of the principal Law, Transitional the Ports and Railways Authority shall carry out its functions in respect of the Provisions railways through State employees who were employed by the Israel Railways immediately prior to the commencement of the 5748 Amendment, and who shall continue to be State employees in all respects during their employment as stated above (hereinafter -- railway employees), until the date fixed in the agreement for transfer of employees. (b) In consideration of that stated in subsection (a), the Authority shall pay the State for all salary expenses of railway employees which have been paid by the State. (c) "Salary expenses", for this purpose -- any payment made by the State and which in respect of railway employees is defined as income from labor as defined in section 2(2) of the Income Tax Ordinance, including allocations for pensions or compensation for dismissal, but excluding sums for pensions or any other payment that shall be made to railway employees in respect of the termination

1 Laws of the State of Israel, New Version 6, p. 120

189 of their employment as State employees during the period stated in subsection (a).

Commencement 43. The commencement of this Law, or any of its sections -- shall be on the date fixed by the Minister by notification in Reshumot, provided that any date so fixed shall not be later than 20th Cheshvan 5749 (31st October 1988).

YITZCHAK SHAMIR CHAIM KORFU Prime Minister Minister of Transport CHAIM HERZOG President of State

190 (No. 61) MUNICIPALITIES ORDINANCE (AMENDMENT) (NO. 36) LAW,5748-1988*

1. In the Municipalities Ordinance1, section 254 shall be replaced by the Replacement following: of section 254 Penalties 254. A person in breach of a provision of a bylaw, shall be liable for a fine of NIS 1,000, and with respect to a continuing offence, an additional fine of NIS 50 for every day of the commission of the offence after written notification thereof has been given by the Mayor, or subequent to the conviction.

YITZCHAK SHAMIR YITZCHAK SHAMIR Prime Minister Prime Minister and CHAIM HERZOG Minister of Interior President of State

' Passed by the Knesset on the 6th Av, 5748 (20th July, 1988) and published in SeferHa-Chukkim 1259 of 13th Av, 5748 (27th July, 1988) p. 165; the Bill and an Explanatory Note were published in Hatza'ot Chok 1885, 5748, p. 203 1 Dinei Medinat Yisrael, Nusach Chadash 8, p. 197; Laws of the State of Israel, New Version.

191 Amendment (No. 62) of section 280 MUNICIPALITIES ORDINANCE (AMENDMENT) (NO. 37) LAW.5748-1988* 1. The provision of section 280 of the Municipalities Ordinance shall be marked "(a)" and followed by: "(b) Without derogating from the aforementioned in subsection (a), the Council may: (1) reduce by 25% the general rate payable by a possessor who has reached the age of 65 and who receives an old age pension from the Institute for National Insurance; (2) exempt from payment of the general rate chargeable for 100 sq. metres, a possessor who has reached the age of 65 and who receives from the Institute of National Insurance an old age pension in addition to social benefits, on the condition that he does not have any additional residential apartments.

YITZCHAK SHAMIR YITZCHAK SHAMIR Prime Minister Prime Minister and CHAIM HERZOG Minister of Interior President of State

Passed by the Knesset on the 12th Av, 5748 (27th July, 1988) and published in SeferHa-Chukkim 1259 of 13th Av, 5748 (27th July, 1988) p. 166; the Bill and an Explanatory Note were published in Hatza'ot Chok 1902, 5748, p. 289

192 (No. 63) POLITICAL PARTIES (FINANCING) (AMENDMENT NO.6) LAW, 5748-1988*

1. In the Political Parties (Financing) Law, 5733-1973 1 (hereinafter - Amendment the principal Law), at the end of section 12 shall come: of section 12 "(c) Where a faction has joined another faction, or where two or more factions have decided to become a single faction, they may give the Speaker of the Knesset notice in which they request that in all matters relating to the funding of current expenditures they should be deemed to be separate factions; in a notice as stated the factions shall indicate the number of members for which each of them receives funding for current expenditures at that time, and the payments for funding of current expenditures shall be made in accordance with it."

2. At the end of section 13 of the principal Law shall come: Amendment of Section 13 "(f) Where a faction ceases to exist as a result of its incorporation into a new factional structure, the funding for current expenditures of the two factions shall be changed commencing with the month following the confirmation of the new factional composition of the Knesset by the Knesset House Committee."

YITZCHAK SHAMIR Prime Minister CHAIM HERZOG President of State

* Passed by the Knesset on 11th Av 5748 (25th July 1988) and published in Sefer Ha-Chukkim No. 1259 of 13th Av, 5748 (27th July, 1988); the Bill and an Explanatory Note were were published in Hatza'otChok 1884,5748, p. 194. ' Sefer Ha-Chukkim 5733, p. 52; L.S.I, vol 27, p. 48: 5742, p.84; L.S.I, vol. 36, p.81

193 (No. 64) POLITICAL PARTIES (FINANCING) (AMENDMENT NO. 7) LAW, 5748-1988

1. In Section 10 of the Political Parties (Financing) Law, 5733-19731, at the end of subsection (a) shall come: "Where they have not done so, and the State Comptroller has notified the Speaker of the Knesset that in his opinion that there was no reasonable justification for their omission, the Speaker of the Knesset shall direct that no payment shall be made to that faction under this Law until the State Comptroller notifies him that accounts have been submitted to him and that the faction has prima facie maintained an accounting system in conformance with his directives".

YITZCHAK SHAMIR Prime Minister CHAIM HERZOG

President of State x

* Passed by the Knesset on 11th Av 5748 (25th July 1988) and published in Sefer ha-Chukkim No. 1259 of 13th Av, 5748 (27th July, 1988) p. 166; the Bill and an Explanatory Note were published in Hatza'ot Chok 1884, 5748, p. 195. 1 Sefer Ha-Chukkim 5733, p. 52; 5742, p. 84; L.S.I, vol 27, p. 48, vol 36, p. 81 (No. 65) JERUSALEM DEVELOPMENT AUTHORITY LAW, 5748-1988*

1. In this Law — Definitions "the Authority" means the Jerusalem Development Authority established by this Law; "the Council" means the Council of the Authority under section 8; "the Board" means the Board of the Authority under section 10; "the Ministers" means the chairman of the Ministers' Committee for Jerusalem, or the Minister designated by the government for the purposes of this Law, jointly with the Minister of Finance.

2. The Jerusalem Development Authority is hereby established. The Authority.

3. The Authority is a body corporate. The Authority - a body corporate. 4. The Authority is an inspected body, within the meaning of the State The Authority Comptroller Law (Consolidated Version), 5718- 1958 '. - an inspected body. 5. (a) The functions of the Authority shall be: Functions of the Authority. (1) to initiate activities for the economic development of Jerusalem; (2) to prepare schemes for the development of Jerusalem; (3) to encourage initiatives for the economic development of Jerusalem; (4) to coordinate government ministries, authorities and bodies working for the development of Jerusalem; (5) to supply information on anything connected with the planning and establishment of economic enterprises in Jerusalem; (6) to advise and assist as to anything connected with the planning and establishment of economic enterprises in Jerusalem, including the proceedings required for this matter under any law. (7) to promote the concentration of the managements of government ministries and units and national organizations in Jerusalem. (b) In carrying out its functions, the Authority shall see to it that its activities do not conflict with decisions taken by the Jerusalem Municipal Council and that they conform with the economic policy of the government.

* Passed by the Knesset on 12 Av 5748 (26 July 1988) and published in SeferHa-ChukkimNo. 1260 of 13 Av 5748 (27 July 1988), p. 168; the Bill and an Explanatory Note were published in Hatza'ot ChokNo. 1889of5748,p.221. 1 SeferHa-Chukkim of 5718, p. 92; L.S.I, vol. XII, p. 167.

195 Powers of 6. The Authority shall have the power: the Authority. (1) to designate the bodies which are to carry out schemes for the economic development of Jerusalem prepared by the Authority; (2) to prescribe the use of the resources at its disposal; (3) to mobilize capital in and outside Israel for the purpose of carrying out its functions; (4) to establish bodies corporate, by itself or with others, or to acquire rights in existing bodies corporate, for the purpose of carrying out its functions; (5) subject to the provisions of any Law, to accept loans for the purpose of carrying out its functions and to issue bonds to that end; the loans and the terms shall require the approval of the Minister.

Use of income. 7. Any income received by the Authority shall, within the framework of its budget, be used for purposes set by the Authority with a view to carrying out its functions.

Council of 8. (a) The Authority shall have a Council consisting of: the Authority. (1) representatives of the government, each appointed from among State employees by one of the following: the Prime Minister, the chairman of the Ministers' Committee for Jerusalem or the Minister designated by the government for the purposes of this Law; the Minister of Finance; the Minister of Energy and Infrastructure; the Minister of Defense; the Minister of Construction and Housing; the Minister of Health; the Minister of Religious Affairs; the Minister of Education and Culture; the Minister of Agriculture; the Minister of Economics and Planning; the Minister of Justice, and Minister of Labor and Social Affairs; the Minister of the Interior; the Minister of Immigrant Absorption; the Minister of Transport, the Minister of Tourism; the Minister of Industry and Commerce; and the Minister of Communications. (2) nine representatives of the Jerusalem Municipality, including six who, as far as possible, reflect the balance of power on the Municipal Council; (3) five representatives of the public appointed by the Ministers and the Mayor of Jerusalem, in coordination with the Coordinating Committee of Economic Organizations in Jerusalem, from among bodies working for the economic development of Jerusalem;

196 (4) the representatives of institutions of higher education, including Torah institutions, ' appointed by the Minister of Science and Development, the Minister of Education and Culture and the Minister of Religious Affairs. (b) The Chairman of the Council shall be appointed by the Council from among its members with the approval of the Minister.

9. The functions of the Council shall be: Functions of the Council. (1) To advise the government as to anything relating to the implementation of section 4 of the Basic Law: Jerusalem, Capital of Israel2, and to advise the Minister as to anything relating to the implementation of this Law; (2) to approve the budget of the Authority; (3) to supervise the carrying out of the functions of the Authority.

10 The affairs of the Authority shall be managed by a Board consisting of: Board of the Authority. ( 1 ) the Council members who are the representatives of the Ministerpf Finance, the Minister of Construction and Housing, the Minister of Religious Affairs, the Minister of Agriculture, the Minister of Economics and Planning, the Minister of the Interior, the Minister of Tourism and the Minister of Industry and Commerce; (2) four of the representatives of the Jerusalem Municipality on the Council, designated by the Municipality.

11 (a) The following persons shall not hold office as members of the Council Disqualification for office. or Board: (1) A person who is not an Israeli national; (2) A person who within twelve years before his appointment was convicted by final judgement of, or served a penalty for, an office which in the opinion of the Attorney General involved moral turpitude; (3) A person who, directly or indirectly, himself or through a relative, agent or partner, is connected with the Authority by any contract or transaction or who has an interest in a body corporate connected as aforesaid; but employees or members of the management of public bodies or of government companies shall not be disqualified by reason only that the bodies or companies are connected as aforesaid.

(b) For the purposes of subsection (a) and section 16 - "person who has an interest" means a person who has a share exceeding

2 Sefer Ha-Chukkim of 5740, p. 209; L.S.I, vol. 34, p. 209.

197 five per cent of the capital of the body corporate or of the voting power therein or of the right to the profits thereof; "relative" means a spouse, a parent, a son, a daughter, a brother, a sister or the spouse of a parent, a son, a daughter, a brother or a sister.

Period of 12. The members of the Council and the members of the Board shall be tenure. appointed for three years and may be reappointed.

Termination 13. A member of the Council or Board shall cease to hold office before the of tenure. expiration of his period of tenure if - (1) he resigns by delivering a letter of resignation to the Minister, or (2) having been appointed while a State or municipal employee, he leaves the service.

Removal 14. The Ministers and the Mayor of Jerusalem may remove a member of the from office. Council or Board from office before the expiration of his period of tenure if: (1) he is permanently unable to carry out his functions or (2) he is convicted of an offense which in the opinion of the Attorney General involves moral turpitude, or (3) he becomes disqualified under section 11(a)(3).

Procedure. 15. The Council and the Board shall determine the procedure of their work and deliberations insofar as it is not prescribed by or under this Law.

Duty to 16. (a) Where a member of the Council or Board, or a body corporate in which disclose he has an interest, has or is likely to have, directly or indirectly, himself or through a privity to transaction. relative, agent or partner, any share, privity or interest in or to any such transaction with the Authority as is about to be considered by the Council or Board: (1) he shall notify the Chairman of the Council or Board of such fact, as the case may be, immediately after becoming aware of the transaction; (2) he shall not be present at the deliberations on that transaction or take part in any decision relating thereto or connected therewith. (b) Subsection (a) shall not apply to any transaction or matter by reason only that the member of the Council or Board is an employee or a member of the management of a body corporate as referred to in that subsection.

Validity of 17. The existence and the powers, and the validity of the decisions, of the acts. Council or Board, shall not be affected by a vacancy of the place, a defect in the appointment or the continuance of the tenure, of a member of the Council or Board.

Director of 18. (a) The Council shall, with the approval of the Minister and the Mayor of Authority. Jerusalem, appoint the Director of the Authority.

198 (b) The Director shall be responsible to the Council, the Board and the Ministers for the implementation of their decisions and for the carrying out of the functions of the Authority.

19. (a) The period of tenure of the Director shall be five years. The Council Tenure of may, with the approval of the Ministers and the Mayor of Jerusalem, extend the Director. appointment for an additional period. (b) The Director shall cease to hold office before the expiration of his period of tenure if: (1) he resigns by delivering a letter of resignation to the chairman of the Council or (2) the Ministers and the Mayor of Jerusalem, after consultation with the Council, determine that the Director is permanently unable to carry out his functions. (c) The Ministers and the Mayor of Jerusalem shall, with the approval of the Council, prescribe the remuneration and the terms of employment with the Director.

20. The terms of employment and remuneration of the employees of the Terms of employment Authority shall be the same as those of State employees. of employees of the Authority.

21. At the beginning of every financial year, the Authority shall submit to the Reports. Minister, the Mayor of Jerusalem and the Finance Committee of the Knesset, a report in respect of the past year. The report shall contain: (1) a balance sheet audited by an auditor; (2) a revenue-and expenditure report; (3) reports concerning the resources of the Authority and the modes of using them; (4) a review of the implementation of the budget of the Authority; (5) a review of the activities of the Authority in that year.

22. The Ministers and the Mayor of Jerusalem may request of the Authority, at Reporting any time, a report and other information as to any matter within the scope of its on demand. functions and powers.

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 00>0.מ<10ו40מ3^22 ~~ * משרד המשפטים (התימה מוסדית). Implementation 23. The Ministers are charged with the implementation of this Law and may and regulations. regulations as to its implementation.

YITZHAK SHAMIR SHIMON PERES Prime Minister Vice-Prime Minister and CHAIM HERZOG Minister of Foreign Affairs President of State

MOSHE NlSSIM Minister of Finance

200 (No. 66) COPYRIGHT ORDINANCE (AMENDMENT) (NO.5) LAW, 5748-1988*

1. Section 2 of the Copyrights Ordinance1 (hereinafter - the Ordinance) shall Addition be followed by: of section 2A Protection 2A For purposes of copyright, the law applying to a computer program"'" program shall be the same as the law applying to a literary creation within the meaning of the Copyrights Law, 19112

2. In section 3(1) of the Ordinance, in place of "six months imprisonment" shall Amendment come "three years imprisonment and a fine seven times the value of the fine of section 3 prescribed in section 61 (a)(4) of the Penal Law, 5737-19773

YITZCHAK SHAMIR AVRAHAM SHARIR Prime Minister Minister of Justice CHAIM HERZOG President of State

' Passed by the Knesset on the 13th Av, 5748 (27th July, 1988) and published in SeferHa-Chukkim No. 1260 of the 13th Av, 5748 (27th July, 1988) p. 171; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1856, 5748, p.26 ' LawsofEretz Yisrael, vol 1, p. 364; 5733, p. 38; L.S.I, vol. 7, p. 30; 5728, p. 57; L.S.I, vol. p. ;5731, p. 165; L.S.I. vol.25 p.157; 5741, p. 300; L.S.I, vol.35 p. 368 2 Laws ofEretz Yisrael, vol 1, p. 364; 3 Sefer Ha-Chukkim 5737, p. 226; L.S.I. Special Volume p. 103.

201 (No. 67) ENCOURAGEMENT OF CAPITAL INVESTMENTS (AMENDMENT No. 34) LAW, 5748-1988*

Chapter ,1959 5719-׳ ,Replacement ]. In the Encouragement of Capital Investments Law Seven^A". Seven "A" shall be replaced by the following chapter: Definitions. 53A. In this chapter - (1) every term shall have the same meaning as it has in the Income Tax Ordinance 2 (in this chapter referred to as "the Ordinance") unless otherwise provided. (2) building includes several buildings built in the same period and on the same site as one complex; (3) "rental building" means a building approved as an approved asset, at least half of whose floor space is intended for residential purposes in accordance with the provisions of section 53B(a), provided that its construction was completed after 17 Av 5748 (31 July 1988); (4) "inflationary amount", on the sale of a rental building or part thereof, means such part of the income as is equal for the original price of the part of the land which relates to the part sold, multiplied by the rate of the increase of the index from the date of the acquisition of the land until the end of the tax year 1984; the resulting amount shall be adjusted to the rate of the increase of the index from the beginning of the tax year 1985 until the end of the tax year in which the income is declared. Right to 53B. (a) The owner of a rental building shall be entitled to the beneflt• benefits specified in sections 53C and 53D if at least half the floor space of the building are dwellings which were let for residential purposes for at least ten of the twelve years following the completion of construction and which were not sold, within the meaning of section 88 of the Ordinance, before the end of the said ten years. (b) The Commissioner may make the grant of the benefits specified in section 53C conditional upon the presentation

Passed by the Knesset on 13 Av 5748 (27 July 1988) and published in SeferHa-ChukkimNo. 1260 of 13 Av 5748 (27 July 1988); the Bill and an Explanatory Note were published in Hatzabt ChokNo 1844 of 5747, p. 305. 1 Sefer Ha-Chukkim of 5719, p. 334; L.S.I., Vol. XIII, p. 258. 2 Bind Medinat Yisrael (Nusah Hadash) No. 6, p. 120; NV Vol. I, p. 145.

202 of a certificate of an auditor that the requirements of subsection (a) have been fulfilled. (c) Where, after a benefit under section 53C or 53D or under section 85(d) of the Ordinance has been granted, any of the requirements of subsection (a) is not fulfilled, the benefit shall be cancelled retroactively and the owner of the building shall have to pay the tax which he would have had to pay but for the benefit, with the addition of linkage differentials and interest for the tax year in respect of which the benefit was granted.

Tax benefits 53C. (a) The rate of the depreciation, under section 21 of to the owner of rental the Ordinance, of any such dwelling in a rental building as was building. under lease for residential purposes in the tax year shall be ten percent. (b) The provisions of section 47 shall apply to income from the sale of a rental building or part thereof, provided that such income as is equal to the inflationary amount shall be chargeable with tax at the rate of ten per cent instead of the rates prescribed in section 47(a) and (c). The provisions of this subsection shall apply both to income as defined in section 1 of the Ordinance and to appreciation within the meaning of section 6 of the Land Appreciation Tax, 5723-1963 3. (c) The limitation of the period of benefits under section 45 shall not apply for the purposes of this chapter. Exemption 53D (a) Where the Board has approved the erection of a from rental building on any land, such land shall be exempt from property tax and power property tax from the tax year preceding the year in which the first to exempt ceiling is constructed in the building or from any other date from building fee. prescribed by the Board, provided that the first year of the exemption shall not predate the year following the year in which the building is approved as an approved asset or the tax year 1988, whichever is the later. (b) The Minister of the Interior may by regulations, in consultation with the Minister of Finance, exempt the erection of a rental building from the whole or part of a building permit fee under the Planning and Building Law, 5725-1965 4 either generally or in certain zones or in respect of particular classes of approved buildings, and regulations as aforesaid may prescribe conditions for exemption thereunder.

Sefer Ha-Chukkim of 5723, p. 156; L.S.I. Vol. XVII, p. 193. SeferHa-Chukkim of 5725, p. 307; L.S.I. Vol. XIX, p. 330. Amendment 2. In the Income Tax Ordinance the following section shall be added at the of Income , Tax Ordinance. ena: (d) The Minister of Finance may, with the approval of the Finance Committee of the Knesset, prescribe that where a dwelling was under lease for residential purposes in a particular tax year and the owner thereof is not, in respect thereof, entitled to benefits under Chapter Seven "A" of the Encouragement of Capital Investments Law, there shall be permitted in respect of such dwelling a deduction for depreciation, calculated as a projection of the value thereof, and the Minister of Finance may, with approval as aforesaid, prescribe rules for calculating the value of the dwelling.

Amendment 3. in the Income Tax (Adjustments by Reason of Inflation) Law, ״ of Income 5745.19855

by Reason of ( 1 ) words "or depreciation under section 21 (d) of the Ordinance, Inflation) and subsection (a) shall not apply to a rental building the depreciation of Law' which has been fixed under section 53C of the Encouragement of Capital Investments Law, 5729-1959" shall be added at the end of section 3(e); (2) In section 12 (a), the words "to income from any such sale of a rental building as the provisions of section 53C of the Encouragement of Capital Investments Law, 5719-1959 apply to, and to income from any such sale of a building or plot as the provisions of section 85(d) of the Ordinance apply to" shall be added at the end; (3) in section 33(b)(5), the words "and in respect of income from a rental building within the meaning of section 53 A of the Encouragement of Capital Investments Law, 5719-1959" shall be added after the expression "5741-1981".

Publication. 4. This Law shall be published in Reshumot within thirty days of the date of its adoption.

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister for Finance CHAIM HERZOG President of State

5 SeferHa-Chukkim of 5745, p. 172; L.S.I. Vol. XXXIX, p. 184.

204 (No. 68) TELECOMMUNICATIONS (AMENDMENT NO. 5) LAW, 5748-1988*

1 1. In section 1 of the Telecommunications Law, 5742-1982 (herein referred to Amendment of section 1 ״ ("as "the principal Law (1) the following definition shall be inserted before the definition of telecommunication": "class license" means a license granted by the Minister under this Law for a type of terminal equipment for the purpose of connecting it to the telecommunications network of the company; (2) the following definition shall be inserted after the definition of "the Company": an "interface" means the physical meeting point between different operation/telecommunications units; (3) in the definition of "telecommunications installation", the words "all including terminal equipment" shall be added at the end; (4) the following definition after the definition of "telecommunicatins message": '"terminal equipment' maens telecommunications equipment for the use of a subscriber of ther Company which connects or is intended to connect the premises of the subscriber with the telecommunications network of the Company by means of an interface intended therefor"

2. In section4(d) of the principal Law, the words "including for the purpose of Amendmentof the payment of fees" shall be inserted after the words "that the license shall be section granted" and the words "for purposes of a special license including terminal equipment, he may also stipulate that a class license for the equipment be first granted" shall be added at the end.

3. The following sections shall be inserted after section 4 of the principal Addition of sections 4A Law: and 4B. 4A. (a) The Minister may grant a class license, either on applicationor at his Grant of own initiative. class license. (b) A person who wishes to connect to the telecommunications network of the Company any terminal equipment for which a class license has not yet been granted shall submit a written application for a class license to the Minister. The application shall set out the particulars of the equipment and be accompanied by the specifications of the equipment and any such other item or document as the Minister may prescribe by regulations.

Passed by the Knesset on 13 Av 5748 (27July 1988) and published in SeferHa-Chukkim No. 1260 of 13 Av 5748 (29 July 1988), p. 174; the Bill and an Explanatory Note were published in. Hatza'ot

ChokNo. 1822 of 5747, p. 198 Sefer Ha-Chukkim of 5742, p. 218;_L.S.I. vol. XXXVI, p. 229; Sefer Ha-Chukkim of5744, p.167 - L.S.I. volXXXVIII, p. 231; Sefer Ha-Chukkim 5746, p. 224, L.S.I, vol XL, p. 234.

205 (c) A class license shall only be granted if the Minister has considered and examined the application and at least the following conditions are met: (2) the safety standard of the equipment is sufficient to prevent injury or damage to those using or handling it and to the telecommunications networkand its personnel. (d) The Minister may grant an application under subsection (a), make its grant subject to conditions which must be met before a license is granted, including payment for it, add conditions to the license after it is granted or reject the application, giving reasons for its rejection. (e) Notice of the grant of a class license for terminal equipment, including the particulars and conditions of the license, shall be published in Reshumot, indicating whether the connection of the equipment requires a special license.

Special 4B. In this section -- license for hotels "hotel means a recommended hotel as defined in the Tourism Service (Hotels) corporation. .5741-1980׳ ,Rehhulations "corporation" means a body corporate, all the shareholders of which are owners of hotels and have incorporated for the purpose of carrying telecommunications operations under this section. (b) Where, under Chapter Two A, a concession for cable broadcasts has not been granted in the zone, the Monister may, notwithstanding anything provided in any law, grant to a corporation a special license to carry on in that zone a telecommunications operation being radio and television broadcasts to the public, provided that the broadcasts are made only within the precincts of the hotels of the shareholders of a corporation unless the license provides otherwise.

(c) Without prejudice to the provisions of section 4, the Minister may perscribe the conditions of a special license granted under this section, including restrictions as to the limitsof the geographical priority between the hotels holding shares in the corporations. (d) Where the owner of the hotel asks to become a shareholder in a corporation and the corporation refuses to accede to his request, the Minister may, after giving both sides an opportunity to be heard by him, direct the corporation to broadcast also to the said hotel, whether or not it owns shares in the corporation, and on the conditions prescribed by the Minister. (e) The council under section 6B may prescribe rules as to the contents and subjects of ther broadcasts of ther corporation under section 4. Rules prescribed by the Council under this subsection shall be treated as conditions of a special permit.

Kovets Ha-Takkanot of 5741, p. 62/.

206 Fees for 34. (a) The Minister may perscribe by regulations — license and conditions (1) a fee for the granting of a license. thereof. (2) an annual fee payable by the holder of a license for every type of telecommunications service provided by such holders other than a service in respect of which the subscriber pays royalties under section 54; (3) procedures and times for the payment of the fees, including the linkage thereof to the consumer price index, the collection of areas interest and the expensesof such collection. (b) In regulations under subsection (a), the Minister may prescribe that every payment which, before the comming into force of those regulations, was made as a condition for the granting of a license, or under a license, shall be regarded as prescribed by those regulations.

4. In section 6A of the principal Law, the following definition shall be inserted Amendment after the definition of "subscriber": of section 6A. "interface equipment" means an appliance used or intended to be used for the purpose of receiving broadcasts on the premises of a subscriber and includes a decoder, channel converter and an aerial;

5. IN section 6G of the principle Law: Amendment of section 6G. (1) in subsection (b), the closing paragraph, beginning with the words "and under the Wireless Telegraphy Ordinance", shall be deleted. (2) the following subsections shall be added after subsection (b): (c) A concessionaire shall receive a license, or provided by the Ordinance and as required for the establishment, operation and maintenance of any wireless equipment which is a part of the cable network on the condition and to the extent prescribed by the license. If the concession is revoked, the license becomes void. (d) A concessionaire shall not, for a license referred to in subsection (a), be required to pay a fee under the Ordinance at a rate exceeding five percent of the rate of the fees imposed under the Ordinance on the holders of other similar licenses.

6. In section 6J of the Principal Law: Amendment of Section 6J (1) the marginal note shall henceforth read "Prohibition of Transfer, Charge, and Attachment," (2) the subsection mark "(a)" shall be inserted after the section mark "6J"and the following subsection shall be added after subsection (a): (b) Interface equipment installed on the premises of a subscriber cannot:

207 (1) be charged or attached: (2) be transferred to another save in accordance with permission given by the Minister by regulations or in the concession. (c) Guarantees provided by a concessionaire under section 6H(b)(5) as security for the fulfillment of the conditions of the concession and in the monies derived from the realization of such guarantees cannot be attached.

Amendment 7 Section 6K of the principal Law shall be remarked as section 6KA and the of section 6K following subsection shall be added thereafter: (b) Where a concession has been revoked or has expired and a new concession has been granted in its stead, the new concessionaire shall, for payment, acquire from the previous concessionaire his rights in the broadcasting station which served for his broadcasts, provided that the station is fit to be used for the continuance of the broadcasts. In the absence of agreement between the concessionaires as to the condition of the station or the amount to be paid for it, the Minister shall settle the dispute and may exempt from the acquisition of a whole or a part of the station. The Minister's decision shall be appealed in the Court.

Amendment g In section 6W of the principal Law: of Section 6W r r (1) In subsection (c), the closing passage, beginning with the word "However", shall be replaced by the following closing passage: "However, the Minister may, with the approval of the Council, permit the diffusion of broadcasts otherwise than through a cable broadcast concessionaire, (hereinafter referred to as "direct diffusion") as long as the broadcasts cannot be diffused by means of the cable network of a cable broadcast concessionaire, after weighing inter alia the public interest of the concessionaire concerned in the grant of the permit. Where there is a cable broadcast concessionaire in a particular zone, the Minister shall hear such concessionaire prior to granting a permit for direct diffusion in a zone as stated"; (2) Subsection (e) shall be remarked (f) and preceded by the following subsection: (e) The Minister may, after consultation with the council, determine in regulations, guidelines for direct distribution including the transfer from direct distribution as stated to distribution via cables of the concessionaires for cable broadcasts and the fees involved therein. (3) In subsection (f) after the words "until "e,g, shall come "h".

208 9. In section 6(34)(a) of tb,e principal Law, the words "shall not be less than two thirds" shall be replaced by the words "shall not be less than five sixths".

10. In section 6(36) of the principal Law, subsection (f) shall be followed by: Amendment of section 6(36) (g) Without detracting from the provisions of Chapter D of the Penal Law, 5737-1977, one who assists in the installation, operation or maintenance of broadcasts, or who assists in the installation, or operation of a broadcasting station in the knowledge, or being liable to know that they are not legally broadcasting or that they have not received a concession from the Minister under this Law, or that they have not received a legal permit, shall be liable to imprisonment for six months or a fine of the sum of NIS 250,000 (hereinafter prohibited broadcasting station or prohibited broadcasts, accordingly). (h) For purposes of subsection (g),"assistance" - (1) participation in prohibited broadcasts, including reading, reading not from a text, music and acting or participation in recording for broadcasts as stated: (2) Supplying of broadasting units for programs of prohibited broadcasts, including supplying records, film and television strips, magnetic and oral broadcasting strips, as well as the writing of scripts for prohibited broadcasts as stated. (3) Supplying news, information or advertising clips for prohibited broadcasts or for a prohibited broadcasting station, an application or payment therefore. (4) Managment of a business designed to facilitate prohibited broadcasts, including assistance in management of such a business. (5) Financing of activities and broadcasts in a prohibited broadcasting station. (6) Technical assistance to a prohibited broadcasting station, its operation and the maintenance of prohibited broadcasts. (7) Mediating between the operator of prohibited broadcasts, the owner or holder of a prohibited broadcasting station and the provider of news or information or persons dealing in advertising or interested in advertising. (8) Employing a person in the staff of a prohibited broadcasting station. (9) Representation or mediation for the operator of a prohibited broadcasting station, its owner or the holder for any of the actions stipulated in subsections (1) - (8).

209 (i) Where an advertisement was included in a prohibited broadcast, without derogating from the• liability of any person for the boradcasting of the stated advertisement, it will be prima facie evidence that the advertisement was provided, ordered or paid for by a person for whom the contents of the advertisement was intended to publicise his business or promote his aims, unless he proved one of the following:

(1) he adopted all reasonable measures in order to prevent the broadcasting of the advertisement; (2) he advertisement was broadcasted without his knowledge;

(j) For purposes of subsection (h)(3), and subsection (i), "advertisement" shall include broadcasts financed by a party or other bodies for election propaganda".

Addition of 11. Section 39(6) of the principal Law shall be followed by the following section 6(40) section: "Prohibition ,6(40). (a) A concessionaire shall not be a side to a restrictive of restrictive agreement as defined in Chapter B of the Restrictive Trade arrangement Practices Law 5748-1988 3 (hereinafter - the Restrictions Law), for the purpose of local production of programs for cable television including the ordering of any work necessary for such production. (b) Where the concessionairre breaches the aforementioned in subsection (a), he shall be regarded as having breached the provisions of Chapter B of the Restrictions Law, and shall be subject to the provisions of the Penal Law stipulated in section 47(a) of that law; where the concessionairre was a group of persons, the provisions of section 48 of that Law shall also apply.

Amendment 12 In section 7(b) of the principal Law: of section 7 (1) The word "nine" shall be replaced by the word "ten". (2) The part of the concluding section beginning with the words "and two" shall be replaced by "two persons, who in the Minister's opinion, represent the data processing section". Amendment 13 In section 12(b)(5) of the principal Law the word "methods" shall be of section 12 deleted. Addition of 28. Section 28 of the principal Law shall be followed by; section 28A Power of 28A. (a) A person authorized by the Minister (hereinafter -the appointee) Entry and Possession may-

3 SeferHa-Chukkim 5748-1988, L.S.I, vol. 42, p. 135.

210 (1) Enter any place of a commercial nature regarding which he has a reasonable suspicion that it serves for an offence related to the import, distribution or sale of terminal equipment defined as an offence under section 53A, and to conduct a search at the location;however it is prohibited to enter a place that also serves for residential purposes, except with an express judicial order, and the provisions of sections 26 -

30 of the Criminal Procedure (Arrest and Search) [New Version] x ״-־Ordinance 5729-1969 shall apply, mutatis mutandis shall apply to Vs a search under this paragraph. (2) To possess any terminal equipment or document (hereinafter in this section - object) regarding which there is a reasonable suspicion that it served or assisted in commission of an offence. An object seized under subsection (a) may be held until the Court before whom the indictment was brought for the offence connected with that object, decides what is to be done with the object; where no indictment is filed within sixty days of the date of the siezure, the object shall be returned; where a doubt arises as to whom to return in to, the Magistrate's Court in the jurisdiction of which the object was siezed, shall rule, at the request of a person claiming a right therein, or at the request of the appointee;

(c) Where a document belonging to a person is siezed under subsection (a), the appointee shall at the/request of that person, xerox the document; (d) A person in possession of an object siezed under subsection (a) above, shall treat it as an owner would; should he fail to do so, and the object is destroyed or damaged, he shall play damages to the owner from the State treasury. (e) The Magistrates Court in whose jurisdiction the object was siezed, may, at the request of the appointee or at the request of any person claiming a right in the object, order that the object be submitted to the person claiming rights therein or to another person, or that it be treated in particular manner as ordered by the Court, all in accordance with its determination.

15. Section 31 of the principal Law shall be replaced as follows: Replacement "Fraud and 31. (a) A person committing one of the following, shall be of Section 31 Deceipt liable for imprisonment of six months or a fine as stated in section 61(a)(3) of the Penal Law, 5737-1977: (1) Uses by way of fraud or deceipt a Telecommunications installation that was legally installed. "A telecoomunications installation" shall include a broadcasting station and a deciphering instrument for coded broadcasts; (2) Attains for himself or for another, by way of fraud or deceipt, a telecommunications service or legally provided services; (3) Produces or distributes a device designed for the commission of an act as defined in paragraph (1) or (2);

211 (b) Where a person is convicted for an offence under subsection (a), the Court may order him to pay financial compensation to the license holder or the concessionairre, respectively, as well as to any other person injured by the said use. (c) In this section: "license holder", "broadcasts", and "broadcasting station", shall be as defined in section 6A".

Amendment 16. In section 36(a) of the principal Law, the words "except by way of a permit of section 36 from the Minister" shall be replaced by the words "except if he received a permit as stated in section 53B".

Addition of 17. Section 36 of the principal Law shall be followed by: section 36A 36A. A person in breach of any of the regulations under section 53 A regarding which a breach constitutes an offence, shall be liable for a fine Amendment (1) The concluding section of the side note shall also read of section 37 "and a mandatory order" (2) Sections 28,29,31,35 or 36 shall be replaced by sections 28,28A,31,33,35,36 or36A"; (3) The words "to discontinue the act constituting an offence" shall be followed by "or to perform an act that would prevent the continued commission of the offence.

Amendment 19. In section 38(d) of the principal Law, in paragraph (1), the words' 'according of section 38 to section 36 shall be replaced by the words "according to section 53B".

Amendment 20. In section 42 of the principal Law, paragraph (2) shall be replaced by: of section 42 They were approved by the Standard Contracts Law, 5743-1983" 4.

21. Section 53 of the principal Law shall be followed by the following Addition sections: of sections Supervision 53A-53B 53A. (a) The Minister shall be entitled to determine in of terminal equipment regulations, provisions regarding: (1) The forms and conditions for the granting of a category approval, including regarding the conduct of examination and measuring of terminal equipment and the examination of the technical specifications of such equipment, including by such means as authorized by the Minister; authorization as stated shall be published in Reshumot; (2) Payments for examinations and measurements as stated;

4 Sefer Ha-Chukkim 5743, p. 8; L.S.I, vol. 37, p. 6.

212 (3) The importing of terminal equipment, its distribution, sale, treatment and maintenance; (4) The obligation of submitting knowledge, documents, or equipment required for the execution of the provisions of this section. (b) The Minister is entitled to make regulations regarding technical specifications of terminal equipments and the methods of its publication after having consulted with the bodies that in his view represent the telecommunications sector, including the sector of data processing; 53B. (a) The Minister or a person authorized by him from amongst the state or company employees may give a permit for the execution of the works stipulated in section 36. (b) A person who sees himself as aggrieved by the decision of the person so authorized under subsection (a), may appeal it before the Minister within twenty one days of receiving a copy of the decision.

22. In the Settlement of Labour Disputes Law, 5717-1957 5, in the definition Amendment of "public service" in section 37A, in paragraph ( 12) in the concluding passage shall of Law come" in the hands of a holder of a license in accordance with the Telecommunications Law, 5742-1982, and in the hands of any other license holder included in the list drawn up by the Minister of Communications with the approval of the Labour and Welfare Committee of the Knesset and which was published in Reshumot.

23. Section 59 shall be followed by; Addition of Section 59A 59A. Regulations.payments and fees according to sections 4A,

Committee 4C 6G(5), 6W(5) and 53 A shall be determined with the approval of Approval v . , , ,, the Economics Committee of the Knesset.

5 Sefer Ha-Chukkim 5717, p. 58; L.S.I, vol. 51, p. 51.

213 Publication 24. This Law shall be published in Reshumot, within 30 days of its adoption by the Knesset.

YITZCHAK SHAMIR GAD YAAKOBI Prime Minister Minister of the Communications CHAIMHERZOG President of the State

214 (No. 69) EGG AND POULTRY BOARD (PRODUCTION AND MARKETING) (AMENDMENT NO. 5) LAW, 5748-1988*

1. In section 1 of the Egg and Poultry Board (Production and Marketing) Amendment Law, 5724-19641, in the definition of "poultry", before the words "and turkeys" of section 1 shall come "ostriches".

YITZCHAK SHAMIR ARYEH NEHEMKIN Prime Minister Minister of Agriculture CHAIM HERZOG President of State

' Passed by the Knesset on 12th Av 5748 (26 July 1988) and published in Sefer Ha-Chukkim 1260 of 13th Av, 5748 (27th July, 1988) p. 180; the Bill and an Explanatory Note were published in Hatza'ot Chok 1893, 5748, p. 251. 1 5eftrWa-Oiukfam5724,p.l2L.S.I.vol, 18. p. 10;5735,p.74;L.S.I.vol29,p.91;5740,p.229;L.S.I vol. 34, p. 265; 5741, p. 179; L.S.I, vol 35 p. 208; 5748, p. 14.

215 (No. 70) TWELFTH KNESSET ELECTIONS (TEMPORARY PROVISIONS) LAW, 5748-1988* 1. With respect to the elections to the Twelfth Knesset, the Knesset Elections :shall be read as if 5729-1969׳ ,(Law, (Consolidated Version (1) in section 3(a), the words "the first day of the voters' register year in which the elections take place", are replaced by the words "from the 21st Cheshvan 5749 (1st November, 1988) (hereinafter - the election day)". (2) section 26 shall be indicated (a) and shall be followed by: "(b) In addition to the aforementioned provisions of subsection (a), a supplement to the voters' register that was prepared for the voters' register of the year 1988, shall be prepared including therein any person who on the determining day was an Israeli citizen and who was registered as a resident, together with his address, in the population register, and whose 18th birthday comes out no later than the election day for the Twelfth Knesset (hereinafter - the supplement), the same person not having been registered according to subsection (a)". (3) In section 28 of the Election Law, in place of the words "from the 15th Av after the determining day" it states "from the election day for the Twelfth Knesset." (4) In section 29, with respect to the supplement, in place of the words "on the 61st day prior to the determining day," it states "on the day of the acceptance of the Twelfth Knesset Elections Law (Temporary Provisions), 5748-1988 (hereinafter - Temporary Provisions), in the Knesset". (5) At the end of section 31 it states " and the provisions of this section and section 32(a) shall not apply to the supplement. (6) Section 33 is replaced by the following section. Presentation 33. No later than five days after the coming into force of these of lists Temporary Provisions, until the tenth day thereafter, the Minister of the Interior shall, on regular work days, supply the supplement at all the regional bureaux of the Population Registrar, in order to facilitate its examination by all requesting to do so;

27th July, 1988) and published in SeferHa-Chukkim׳) Passed by the Knesset on the 13th Av, 5748 * No. 1230 of the 13th Av, 5748 (27th July, 1988) p. 181; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1894, 5748, p.260. 1 Sefer Ha-Chukkim 5729, p. 103; L.S.I. Vol 23, p. 110. (7) At the end of section 34 it states "this section shall not apply to the supplement";

(8) In section 35, in place of "from the 39th day after the determining day" it states "from the third day after the commencement of the Temporary Provisions"; (9) At the end of section 36 it states "this section and sections 37 & 38 shall not apply to the supplement"; (10) In section 39 with respect to the Supplement, in place of "no later than the 46th day after the determining day" it states "no later than five days after the commencement date of the Temporary Provisions"; (11) In section 40 with respect to the Supplement, in place of "until the 65th day after the determining date" it states "until the fourteenth day after the commencement of the Temporary Provisions:" (12) In section 41 it states "this section and section 42 shall not apply to the Supplement"; (13) In section 44, with respect to the Supplement, in place of " until \the 89th day after the determining date" it states "until the twentieth day after the commencement of the Temporary Provisions:" (14) At the end of section 45 it states "this section shall not apply to the Supplement"; (15) Section 46 shall be replaced by: Appeal 46. The submitter of an appeal or an objection may, and where the objection pertains to another person, so may the other person, until the 26th day after the commencement of the Temporary Provisions, appeal before the District Court, against the decision of the Minister of the Interior or regarding his not having received the notification of the Minister of the Interior. (16) In section 49 with respect to the Supplement, in place of "until the 113th day after the determining date" it states " until the 34th day from the commencement date of the Temporary Provisions.;" (17) Section 54 shall be replaced by: Initial validity 54. The voters' register and the supplement thereto shall become

of register w^ on the 36th day after the commencement of the Temporary Provisions.;" 2. With respect to the elections to all of the local authorities that are conducted Temporary provisions on the day of the Twelfth Knesset elections, the Local Authorities (Elections) Law, for elections 5725-19652, shall be read as if in section 11 A, in place of paragraph (1) it states: to local authorities

Sefer Ha-Chukkim 5725, p. 248; L.S.I. Vol 19, p. 261.

217 "(1) The list of voters for the voting box regions that on the determining date were in the jurisdiction of that local authority; the lists shall be those that were prepared according to the Knesset Elections [Consolidated Version] Law, 5729-1969 and the Twelfth Knesset Elections (Temporary Provisions) Law, 5729-1969, and they are valid on the election day after having been completed and amended according to those laws.

Commencement 3. This Law shall come into force on the day of its passage in the Knesset.

YITZCHAK SHAMIR YITZCHAK SHAMIR Prime Minister Prime Minister and CHAIM HERZOG Minister of the Interior President of State

218 (No. 71) TWELFTH KNESSET ELECTIONS (TEMPORARY PROVISION) (No. 2) LAW, 5748-1988* 1. In section 61(a) of the Knesset Elections Law (Consolidated Version), Amendment ,the words "or three letters" shall, for the purposes of the elections to of section 81 ,5729-1969׳ the Twelfth Knesset, be deemed to be added after the words "with two letters".

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

YITZCHAK SHAMIR YITZCHAK SHAMIR Prime Minister Prime Minister and CHAIM HERZOG Acting Minister of the Interior President of State

" Passed by the Knesset on 13th Av 5748 (27th July 1988) and published in Sefer Ha-Chukkim No. 1216 of 13th Av 5748 (27th July 1988) p. 182; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1900 of 5748, p. 278. 1 Sefer Ha-Chukkim of 5729, p. 103, L.S.I, vol. 23, p. 110.

219 (No. 72) CRIMINAL PROCEDURE (AMENDMENT No. 9) LAW, 5748-1988*

Amendment 1• *n section 21 of the Criminal Procedure Law (Consolidated Version), - "hereinafter referred to as "the principal Law) 5741-1982 .21׳ of section (1) the marginal note shall hereafter read "Arrest before filing of indictment". subsection (a) and the marking of subsection (b) shall be deleted.

Addition of 2. The following sections shall be inserted after section 21 of the principal sections 21A Law and21B Arrest after 21 A. (a) Where an indictment has been filed, the court in which it mav order the arrest of the accused in any one of the ׳^md^ctrnent" was ^'ec following cases: (1) The court, on the basis of the material submitted to it, considers that reasonable grounds exist for fear that the release of the accused will lead to a disruption of legal proceedings or that the accused will evade justice or that due to the nature of the offense there are reasonable grounds for fear that the accused will endanger the life or safety of a person or the peace or safety of the community or the security of the State; (2) The accused is charged with an offence under the Dangerous Drugs Ordinance (New Version), 5733-19732, except for an offense relating to his own use or to possession for his own use, of a drug, or is charged with an offense committed with violence or cruelty or by committed with resort to a firearm or cutting weapon, or fire, or an attempt or threat to commit such an offense, or is charged with an offense committed upon a minor or while taking advantage of a situation preventing resistance on the part of the victim or in exploitation of the psychical or intellectual deficit of the victim; (3) the court has ordered bail under section 33(b) and bail has not been given to the satisfaction of the court or a

* Passed by the Knesset on 13 Av 5748 (27 July 1988) and published in Sefe Ha-Chukkim 1261o£ 13th Av, 5748 (27th July, 1988)p. 184; the Bill and an Explanatory Note were published in Hatza'ot ChokNo. 1836 of 5747, p. 263 1 Sefer Ha-Chukkim of 5742, pp. 43; L.S.I., Vol. XXXVI, p. 35; Sefer Ha-Chukkim of 5748, p. 66. 2 Dinei Medinat Yisrael (Nusah Hadash) , No. 27, p. 526, NV, Vol. Ill, p. 5; Sefer Ha-Chukkim of 5739 p. 134; L.S.I., Vol. XXXII, p. 165.

220 condition of the bail has been breached or grounds for the cancellation of release on bail under Article Two of this Chapter has arisen.

(b) A court shall not make an arrest order under subsection (a) unless, after hearing the parties, it is satisfied that there is prima facie evidence of guilt and, with respect to subsections (a)(1) and (2), a court shall not order as aforesaid except where the following circumstances also exist: (1) the purpose of the arrest cannot be achieved by way of release on bail and conditions of release less seriously affecting the freedom of the accused; (2) the accused has a defense counsel or has stated that he wishes not to be represented by counsel. (c) Where the accused has no defense counsel and has not stated as specified in subsection (b)(2), the court shall appoint a defense counsel for him and the provisions of subsection (b)(2) shall apply to this matter; so long as a defense counsel has not been appointed, the court may order the arrest of the accused for periods not exceeding thirty days each time. The provisions of this subsection are in addition to the provisions of section 15. (d) The gravity of the offense per se shall not constitute grounds for arrest except in the cases enumerated in subsection (a). Mandatory 21B. When an indictment has been filed for an offense punishable arrest with death or mandatory life imprisonment, or for an offense under Chapter Seven of the Penal Law, 5737-1977 3, punishable by life imprisonment, the court shall order the arrest of the accused if, after hearing the parties, it is satisfied that prima facie evidence of guilt exists. Authority to arrest in 21C. Where, after judgment has been given, a notice of appeal is appeal. filed by a plaintiff, the power of arrest under section 21A shall rest in the appellate court, which may issue an arrest order for the offences enumerated in section 2IB.

3. In section 27 of the principal Law, in subsection (a), the expression 21 (a) shall Amendment of section 27. be replaced by the expression "21A and 2 IB," and in subsection (b) the expression "21(b)" shall be replaced by the expression "21".

3 SeferHa-Chukkim of 5737. p. 226; L.S.I. Special Volume: Penal Law, 5737-1977.

221 Amendment 4. In section 33 of the principal Law -- of section 33 (1) the marginal note shall henceforth read "Release on bail". (2) The current section shall be indicated "(a)" and shall be followed by: "(b) The Court may order the arrest of the accused or of the appelant whose appeal against his verdict is pending, to produce a bail even where it was unauthorized to order his arrest under section 21A and, having so ordered, the accused or the appelant shall be deemed to have been released on bail. Amendment 5. In section 36 of the principal Law, subsection (b) shall be followed by: of section 36 "(c) A Court empowered to order bail under section 33 (b) is a Court empowered to preside over a reques for release under subsections (a) and (b)". Amendment 6. Section 38 of the principal Law shall be indicated (a) and shall be followed of section 38 by: "(b) Where a decision has been given in an objection before the District Court, subsequent to the filing of an indictment, the sides may appeal it in the Supreme Court, where leave to do so was given by a justice of the Supreme Court.

YITZCHAK SHAMIR YITZCHAK PERETZ Prime Minister Minister of Interior CHAIM HERZOG President of State

222 (No. 73)

PENAL LAW(AMENDMENT NO. 24) 5748-1988*

hereinafter - the Principal Law), section 351 Repeal of) 5737-1977׳ ,In the Penal Law .1 is repealed. section 351

2. Sections 448 and 449 of the Principal Law shall be replaced by the following Replacement sections: of sections 448 and 449 Arson 448. (a) A person who wilfully sets fire to an object not belonging to him is liable to imprisonment for fifteen years; if he did so in order to damage State property, property serving the public, a nature site, vegetation or the safety of the residents of the area or with the intention of injuring persons he is liable to imprisonment for twenty years. (b) A person attempting to committ an offence as stated in subsection (a), or who wilfully sets fire to his property in circumstances -under which the fire is liable to spread beyond his property is liable to imprisonment for ten years. Negligent 449. A person who negligently causes something not belonging to cause of fire him to catch fire, or who negligently causes the danger of a fire to something not belonging to him is liable to imprisonment for three years.

3. In the Prevention of Field Fires Law, 5710-1949 2, section 12 shall be Amendment replaced by the following section: of Prevention of Field Penalties 12. (a) Whoever contravenes the provisions of this Law with Fires Law the exception of the provisions of section 4 is liable to six months imprisonment. (b) Whoever contravenes the provisions of section 4 is liable to three years imprisonment.

4. In the Courts Law [Consolidated Version], 5744-1984 3 - Amendment of the Courts (1) In the First Schedule, in paragraph 1, the section numbers "346, Law 347(b), 354(b) shall be replaced by 345(a)(2) until (4)"; (2) In the Second Schedule, in paragraph 1, the section numbers "347, 351, 354(a), 359, 360" shall be replaced by "345(a)(3), 346(a), 348(b)".

* Passed by the Knesset on the 13th Av, 5748 (27th July, 1988) and published in Sefer Ha-Chukkim No. 1261 of the 13th Av, 5748 (27th July 1988) p.185; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1889,5748, p.226. ' Sefer Hukkim 5737, p. 226,5748, p. 64; L.S.I. Special Volume The Penal Law, Vol 42 p. 2 Sefer Hukkim 5710, p. 32; L.S.I. Vol 4, p. 24. 3 5e/erHuJtfc/m5744,p.l98,5745,p. 138,5746,p.216;L.S.I. Vol38,p.271. Vol.39,p. 148;Vol40. p.224

223 Commencment 5. Section 1 shall come into force on the day upon which the Penal Law (Amendment No. 22), 5748-1988 4 comes into force.

YITZCHAK SHAMIR AVRAHAM SHARIR Prime Minister Minister of the Interior

CHAIM HERZOG President of State

/

4. Sefer Hukkim 5748, p. 62; L.S.I. Vol 42, p. 57.

224 (No. 74) INCOME TAX ORDINANCE AMENDMENT (NO. 77) LAW, 5748-1988 *

1. In the Income Tax Ordinance1 (hereinafter - the Ordinance), in section 9, Amendment paragraph (22) shall be replaced by the following paragraph: of section 9

(22) Maintenance payments received by a single person from a person Maintenance to whom she was or from whom she is currently married to and living payments apart from, and maintenance payments received by a single person for his children from another parent, or payments received by a single person, for himself or for his children, from the Institute of National Insurance in accordance with the Maintenance (Assurance of Payment) Law, 5732-19722;"

2. In section 40(b)(2) of the Ordinance, the concluding passage after the word Amendment "between them" shall be replaced by the following passage "a parent not entitled to of section, 40 a concession point according to paragraph (a) shall receive one point or a part thereof in accordance with his part in the maintenance expenses."

3. In section 40A of the Ordinance, the words "to his past wife, he having Amendment married another woman" shall be replaced by the words "to his past spouse, and he of section 40A is married to another spouse".

4. In section 45 of the Ordinance, the words "in the calculation of the tax of Amendment shall be deleted, the word "woman" shall be replaced by "spouse" and the words "to of section 45 his wife" shall be replaced by "to his spouse", and the words "in the tax assessment of either himself or his or spouse".

5. In part 4 of the Ordinance, the title "Chapter Three: Income of a Married Replacement Woman" shall be replaced by "Chapter Three: Income of Spouse". of title

6. In section 65(a) of the Ordinance, the words "and not under her name or under Amendment the name of her trustee" shall be deleted. of section 65

7. Section 65 of the Ordinance shall be followed by the following section: Addition of section 65A File under 65A (a) The file conducted by the assessment clerk in relation

the spouse's tQ me coupie shai! bear the names of both of the spouses, name r (b) The provision of subsection (a) shall not apply until the end of the 1998 fiscal year with respect to the files opened prior to the 24th Shevat 5749 (1st January 1989), except in accordance with the decision of the Governor or persuant to an application submitted by the couple or one of them to the assessment clerk.

* Passed by the Knesset on the 12th Av, 5748 (26th July, 1988); and published in SeferHa-Chukkim No. 1261 of 13th Av, 5748 (27th July, 1988) p. 186; the Bill and an Explanatory note were published in Hatza'ot Chok 1865, 5748. p. 103. 1 Dinei Medinat Yisrael Nusach Hadash 6, p. Sefer Hukkim 5748, p. 28; Vol 42 p. 23. 2 Sefer Ha-Chukkim 5717, p. 87; L.S.I. Vol 26, p. 103.

225 8. In section 67 of the Ordinance, subsection (b) shall be replaced by the following subsection: "(b) Notwithstanding the provisions of subsection (a), where the income was procurredby the personal efforts of the spouse and it is proven to the assessment clerk's satisfaction that that the spouse works primarily outside of the farm, three quarters of his income from the agricultural farm, shall be considered as income derived primarily in the farm, and either the man or the woman are entitled to demand that a separate calculation be made in accordance with section 66 with respect to three quarters or one quarter of the income from the farm, respectively, as relating to the woman.

Planning of 9. By the end of 1991, the Government shall propose a law that establishes the separate files rights of a married woman whose file is conducted by the assessment clerk, to have her income separate from that of her husband.

Application 10. Section 8 will be applicable from the 1986 fiscal year onwards; the other provisions shall be applicable from the 1989 fiscal year and onwards.

YITZCHAK SHAMIR MOSHE NlSSIM Prime Minister Minister for Finance CHAIM HERZOG President of State

226 (No. 75)

SECURITIES (AMENDMENT NO.9) LAW, 5748-1988*

1. In the Securities Law, 5728-1968', (hereinafter - the Principal Law), the Replacement term "manager", wherever mentioned, shall be replaced by the term "director." of term manager 2. In section 1 of the Principal Law - Amendment of section 1 (1) The definition of "affiliate company" shall be replaced by: "allied company" - a company, in which another company other than its parent company, holds twenty five percent or more of the nominal value of its issued share capital, or of the voting rights, or may appoint twenty five percent or more of the directors; "associate company" - an allied company, or a company in which another company, other than its parent company has invested a sum equal to twenty five percent or more or of the equity capital of the other company whether in shares or otherwise, except a loan given in the regular course of business - "Registration Company" - a company engaged solely in holding securities on behalf of others;

(2) The definitions of 'holding" and "acquisition " shall be replaced by: "holding and acquisition" in relation to securities or voting power etc. shall be deemed as such whether alone or together with others, directly and indirectly, through a trustee, a trust company, a registration company or in any other manner; with respect to holding and acquisition by a company, holding or acquisition by its subsidiary and its associate shall also be included and in the case of holding or acquisition by an individual, an individual and the members of his family who live with him, or who sustain or are dependant on him, shall be considered to be one person;

(3) The definition of "holding" and "acquisition" shall be followed by: "holding or acquisition of securities together with others" means the holding or acquisition of securities in cooperation between two persons or more according to an agreement, written or oral; without derogation to the generality of the above, joint holding or ־:acquisition of securities shall be presumed in cases of

Passed by the Knesset on the 27th Shevat, 5748 (15th February, 1988) and published in Sefer Ha-ChukkimNo. 1261 of 13thAv (27th July, 1988) p. 188; the Bill and an Explanatory note were published in Hatza'ot Chok 1707,5745. p. 53. Sefer Ha-Chukkim 5717, p. 87; L.S.I. Vol 22, p. 103.

227 (1) A body corporate •holding, or acquiring securities (for purposes of this definition - a body corporate), together with a shareholder holding one or more percent of its issued share capital or with a subsidiary or associate company; (2) A body corporate together with its director or with a family member of the director; (3) A body corporate together with another body corporate controlled by the director of the body corporate; (4) A person whose business is the holding or trading in securities on behalf of others, together with his client or family member who is not resident with and between whom there are no relations of dependence, for whom he holds and manages securities in accordance with a power of attorney granting him discretion in the use of the voting right. "family member" means the spouse and the sibling, parent, grandparent, descendant or spouse's descendant, or the spouse of any of the above; "control" means the power to direct the activity of the body corporate, with the exception of power derived exclusively from filling the position of director or of any other office in the body corporate, and a person shall be presumed to be in control of the body corporate when in possession of one half or more of a certain class of the means of control of the body corporate. "means of control" of a body corporate means any one of the following: (1) The right to vote in the General Meeting of the company or in a parallel body of a different body corporate. (2) The right to appoint the directors of the body corporate or its general manager; "independent capital" - capital, funds and surpluses, according to generally accepted accounting principles: "interested party", in a body corporate - (1) a person holding five percent or more of the issued share capital of the body corporate, or of the voting power therein, a person entitled to appoint ten percent or more of the directors of a body corporate, or its general manager, a person serving as the director of a body corporate or as its general manager, or a body corporate in which a person as aforesaid holds twenty five percent or more of the issued share capital or of the voting power, or who is entitled to appoint twenty five percent or more of its directors; for the purposes of this paragraph: (a) a manager of a joint investments trust fund shall be regarded as holding the securities included in the assets of the fund; (b) where a person holds securities by means of a trustee, the trustee too shall be regarded as holding the said securities; for this purpose "trustee" does not include a registration company. (2) a subsidiary of a body corporate, not including a registration company; (3) the definition of "banking institution" shall be replaced by the following definition: "banking institution" - as defined in the Banking (Licensing) Law, 5741-19812 (4) the definition of "banking institution" shall be followed by: "stock exchange" means a securities stock exchange which has received a license under section 45:" (5) In the concluding passage shall come: "the Joint Investments Law" - means The Joint Investments Trusts Law, 5721-19613 3. In section 3 of the principal Law - Amendment of section 3 (1) In subsection (b), the concluding passage beginning with the word "one" shall be replaced by the words "and one of them as the deputy chairman"; (2) In subsection (d) the words "vice chairman" shall be replaced by the words "deputy chairman"; 4. In section 4 of the principal Law - Amendment of section 4 (1) Subsection (b) shall be re-marked (c) and shall be preceded by: "(b) The term of office of the Chairman of the Authority shall be

five years from the day when he was tfirst being appointed Chairman, and upon the termination of such term in office he may

2 Sefer Ha-Chukkim 5741, p. 232; L.S.I. Vol 35, p. 277. 3 Sefer Ha-Chukkim 5721, p. 820; L.S.I. Vol 15, p. 79.

229 be reappointed for additional terms of office of three years each.;" (2) The section shall be concluded by: "(d) The Minister of Finance may revoke the appointment of a member of the Authority, who, without reasonable cause as determined by the Minister, was absent from four consecutive meetings of the Authority, or from six meetings during one financial year, after the Authority member has been given an appropriate opportunity to state his claims; the provisions of subsection (c) shall not apply to a member of the Authority whose appointment has been revoked as aforesaid.

Amendment 5. In section 5 of the principal Law, the word "general" shall be followed by the of section 5 word "or". Addition of 9A. Management of the Authority sections 9A and9B The Chairman of the Authority is the appointee in charge of the functions of the Authority and is charged with the implementation of its decisions. Publication 9B. The Authority shall publish those decisions which it of decisions considers to be of fundamental importance.

Amendment 7. In section 12b of the principal Law, the words' 'Deputy to the Chairman or the of section 12 Vice Chairman" shall be replaced by the words "or the Deputy Chairman".

Amendment 8. In section 13 of the principal Law the words "with the consent of the of section 13 Authority" shall be followed by the words "or the Chairman of the Authority".

Addition of 9. Section 14 of the principal Law shall be followed by the following section: section 14A Appeal against 14A. A person considering himself aggrieved by a decision of the dhecistón0my's Authority, may appeal the decision in the District Court".

Amendment 10. In section 15 of the principal Law, subsection (b) shall be followed by the of section 15 following subsection: "(c) The Authority may exempt from the application of subsection (a) an offer of securities made by a liquidator, a trustee in bankruptcy, a receiver of assets, the administrator of an estate or guardian or an offerer who is not the issuer, all in accordance with such conditions as prescribed in regulations by the Minister of Finance upon the proposal of, or consultation with the Authority, and with the approval of the Finance Committee of the Knesset; in regulations under this subsection a duty may be imposed on the issuer to provide information to the issuer. (d) The Authority may exempt an offerer from publishing a prospectus, on condition that the securities not be registered for trading

230 on the Stock Exchange and shall be offered exclusively to banking corporations, insurers or provident funds; in this subsection -

"banking corporation" - does not include a joint services company; "insurer" shall have the same meaning as in the Insurance Business (Control) Law, 5741-1981 4; "provident fund" shall have the same meaning as in section 476(a)(2) of the Income Tax Ordinance 5."

11. Sections 16 until 20 in the principal Law shall be replaced by the following Replacement sections: of sections 16 until 20 Prospectus 16. (a) A prospectus shall include any particular likely to be of importance to the reasonable investor considering acquiring the securities being offered therein, and every particular that prescribed by the Minister of Finance in regulations pursuant to section 17. (b) There shall be no misleading particular in the prospectus. Regulations 17. (a) The Minister of Finance may, shall upon the proposal of, regarding or after consultation with the Authority and with the approval of the particulars of the prospectus Finance Committee of the Knesset, make regulations relating to the particulars to be included in the prospectus and regarding the structure and format of the prospectus. (b) Regulations under this section may relate /nfera/7a,tothe following: (1) financial reports of the issuer, of its subsidiaries and associates, the requisite degree of particular and the accounting principles governing their editing; (2) subjects and particulars to be related to in the accountant's opinion on the reports referred to in paragraph (1) and the format of the opinion; (3) an opinion of an advocate, relating to the following matters: (a) the rights attached to the securities being offered and to the other securities of the issuer; (b) the power of the issuer to issue the securities in the offered form;

4 SeferHa-Chukkim 5741, p. 208; L.S.I. Vol 35, p. 243. 5 Dinei Medinat Yisrael 5717, p. 87; L.S.I. New Version

231 (c) the appointment of the directors of the issuer; (d) a description of the agreements referred to in the prospectus to which the issuer is a party; (e) a description of the guarantees and charges referred to in the prospectus that have been given by the issuer and which are valid at the time of the publication of the prospectus; (f) a description of the legal proceedings referred to in the prospectus, to which the issuer is a party at the time of the publication of the prospectus; (4) an advocate's certification of the receipt of the legally required permits for the offering of securities to the public; (5) a specification of the names of the persons who are holders of the proportions as shall be determined, such proportion not being less than five percent of the securities of the issuer or of issuer's subsidiary, by virtue of the voting power conferred thereby or the authority to appoint their directors, and an indication of the contractual agreements between the said holders and the issuer.

(c) When regulations have been made pursuant to subsection (b))5), the holder of shares to which the regulations are applicable must give the issuer a full account, to the best of his knowledge of the names of the persons holding securities at the rate determined in the regulations and the extent of their holding. (d) The Minister of Finance may make regulations under this section generally, or for certain categories of securities, of issuers, of offerers or offers to the public, or according to any other categorization. Draft 18. (a) An offerer who submits a draft of a prospectus to the Prospectus Authority, shall include therein all the particulars that are to be included in a prospectus in accordance with sections 16 and 17, but may omit from the draft the price of the securities being offered. (b) An offerer desiring to obtain an exemption under section 19 from including any of the particulars in the prospectus, shall submit to the Authority a request for an exemption and specify the particular; the request shall be submitted to the Authority together with the draft of the prospectus, and there is no duty to include the particular in the draft of the prospectus.

232

\ (c) The offerer must, at the Authority's request, make a written submission of explanations, particulars, information and documents related to the details included in the prospectus and relating to any matter the clarification of which is demanded by the Authority. 19. (a) The Authority may exempt the offerer from including a particular in the prospectus if - (1) in its opinion, preservation of a trade secret of the offerer justifies the non-disclosure of the particular, provided that assuming its inclusion in the prospectus a reasonable investor would not have been dissuaded from investing in the proposed securities; (2) its disclosure is liable to damage the security of the State or of its economy or an investigation being conducted by the Israeli Police or the Authority, and the Minister of Defence or the Minister of the Police, or the Chairman of the Authority, as the case may be, of a person so empowered by any one of them, has certified by an instrument under his hand that the disclosure would cause such damage. (b) Should the Authority find that with respect to the reasonable investor, considering the acquisition of the securities offered, the disclosure of a particular as stated in subsection (a)(2) is important, it shall not permit publication of the prospectus. (c) Where an exemption is granted under subsection (a), it shall be noted in the prospectus that an exemption from disclosure was granted. 20. (a)The Authority may require that the offerer include the matters detailed hereunder in the prospectus if it considers that under the circumstances, they are important for a reasonable investor considering the acquisition of the securities being offered, and these are the matters: (1) A particular in addition to those particulars set forth in the draft prospectus, or specification in addition to the particulars required under the regulations pursuant to section 17; (2) Any of the particulars required under the regulations pursuant to section 17 with respect to the issuer - also with respect to its subsidiary or to its associate;

233 (3) -An advocate's opinion relating to any particular in addition to the particulars required under the regulations pursuant to section 17(b)(3); (4) An expert's opinion regarding a réévaluation or any other matter referred to in the draft prospectus or in the financial reports included therein; (5) A report or any other opinions, in addition to the report or the opinion set forth in the draft prospectus; (6) After the offerer has been given a reasonable opportunity to state his claims - financial reports and an accountant's opinion instead of reports and the opinions that were set forth as part draft prospectus, if in its opinion these were not prepared according to generally accepted principles of accounting and financial reporting, and do not accurately reflect the situation of the issuer's business.

(b) The Authority may demand that the offerer give special emphasis to a particular appearing in the prospectus draft, in such form as it may direct.

12. In section 21 of the principal Law, the word "according to it" shall be followed by the words "and all the permits legally required were given prior to the publication of the prospectus." 13. In section 22 in the principal Law- (1 ) the marginal heading shall be replaced by the heading "Approval of the prospectus and signing thereon"; (2) subsections (b) and (c) shall be re-marked respectively as (c) and (d) and subsection (a) shall be replaced by the following: (a) A draft prospectus first submitted to the Authority, and the final version of the prospectus intended for publication shall be approved by the issuer's Board of Directors. (b) The prospectus shall be signed by the issuer and the majority of the members of the board of directors, at least one of whom shall be a director from the public, and in a company making its first issue to the public - at least one of whose directors is not an interested party therein except by virtue of his being a director; the signature of the director shall be his own, or that of any person empowered by him to sign in his stead on the same prospectus; in this section, "a director from the public" shall be as referred to in Article B: of Chapter D of the Companies Ordinance [New Version], 5743-1983 6; (3) The following subsection shall be added at the end of the section: (e) Should a director be opposed to the issuing of the prospectus or refuse to sign on the prospectus, and having brought the matter to the attention of the Authority in writing stating his reasons, the Authority shall be entitled to delay the publication of the prospectus if it considers that grounds would exist for Court intervention of the Court were the matter brought before it; the delay shall be for ten days from the day of the decision of the Authority unless decided otherwise by the Court. (f) Notification regarding the opening of proceedings under subsection (e) shall be submitted to the Authority, and the Authority is entitled to be present at the proceeding and state its position. 14. In section 23 of the principal Law - Amendment of section 23 (1) Subsection (c) shall be replaced by the following subsection: "(c) No later than the first business day after the date of the prospectus, the offerer shall - (1) submit to the Registrar a copy thereof and a copy of the permit for its publication, and the trustee deed too if the prospectus contains an offer of securities regarding which a trusteeship deed has been signed; (2) publish in at least two daily papers of a wide circulation in the Hebrew language, appearing in Israel, notice of the submission of the documents referred to in paragraph (1) and of the places in which copies of the prospectus may be obtained and orders placed for the securities offered; the Authority may require that additional particulars be included in such manner as it directs;" (2) Subsection (c) shall be followed by: "(d) The Authority may direct the offerer to distribute copies of the prospectus, within such period as it may determine, at places and in quantities as it may direct."

16. In section 25 of the principal Law - Amendment of section 25 (1) In subsection (a), in the concluding passage, the words "to publish forthwith" shall be followed by the words "or not later than the date determined by it"; 6 Laws of the State of Israel, N.V. 37, p. 761; Serer Ha-Chukkim 5747, p. 72, L.S.I., vol 41, p. 77.

235 (2) Subsection (b) shall be replaced by: (b) Where the Authority has directed as provided in subsection (a) (1) prior to the commencement of the period for placing of orders - the period shall be postponed for seven days beginning from the day of the publication of the amendment to the prospectus, or of the amended prospectus, unless the Authority has fixed another date; (2) after the commencement of the period for the placing of orders - the time passage shall be interrupted, and shall be renewed seven days after the publication of the amendment to the prospectuses or the amended prospectus, and the termination of the period and the dates determined as a result thereof shall be postponed accordingly, unless the Authority has determined otherwise; (3) The aforementioned provisions of subsection (c) shall be marked (d), and therein, after the words "shall notify the Authority" shall come the words "in writing";(part of Hebrew amendment not relevant to the English Version - Translator), and shall be preceded by the words: "(c) The offerer shall not accept orders for the acquisition of securities during the period from the day upon which the Authority gives its order in accordance with subsection (a) until seven days after the day of the first publication of the amendment to the prospectuses or the amended prospectus, or another date as determined by the Authority;" (4) Subsection (d) is repealed. 17. Section 25 of the principal Law shall be followed by: sections^A Amendment of 25 A (a) Where an offerer wishes to alter any particular of the until 25C *IheTfSs prospectus after a permit has been granted for publication of the request or prospectus and prior to the expiry of the period for the placing of publication orders, he shall submit an application to the Authority, and if he of financial wishes to register the securities for trade on the stock exchange, he reports shall submit a copy of the application to the Stock Exchange; should the Authority permit the alteration of the particular, he shall amend the prospectus accordingly; the Authority may permit an amendment of the prospectus as stated if it finds it necessary, or that the amendment of the prospectus does not prejudice the rights of persons who had placed an order or acquired the securities being offered prior to the publication of the amendment of the prospectuses.

236 (b) Where financial reports of the offerer, of the issuer or of another body corporate whose financial reports were included in the prospectus are submitted, and having given permission for the publication of the prospectus and prior to the termination of the period for the submission of orders, the Authority shall order the offerer to publish immediately or not later than the date determined by it, the amendment to the prospectus or the amended prospectus, in the form and manner as specified by it. (c) Where the Authority permits the amendment of the prospectus as stated in subsection (a), or directs that the amendment to the prospectus or the amended prospectus be published as stated in subsection (b), the provisions of sections 25(b) and (c) shall apply mutatis mutandis.

(a) An amendment to a prospectus or an amended prospectus shall be Law applicable regarded as a prospectus and the provisions of the Law applicable to a prospectus to amendment of prospectus shall apply to it. and to , amended (b) Where an amendment to the prospectus or an amended prospectus has prospectus been published on the date on which the offerer was to have included the updated financial reports in the amendment to the prospectus or the amendment prospectus, the Authority may, in special circumstances, exempt the offerer from their inclusion; having granted an exemption in accordance with this subsection, the Authority may request that the offerer include in the amendment to the prospectus or in the amended prospectus such additional particulars as it may specify and publish the reasons for the granting of the exemption in the manner and the location specified for the publication of the amendment to the prospectus or the amended prospectus.

Correction of 25C. Should there be a technical-linguistic error, a slip of the pen, a scribal an accidental omission, a typing error, a copying error or the like in error in the prospectus the prospectus, the offerer shall submit an immediate report thereof as stated in section 36(c), publish the fact of amendment in the same manner as the notice was published according to section 23(c)(2) and shall append a copy of the correction to every copy of the prospectus.

18. In section 26 of the principal Law, subsection (b) shall be followed by: Amendment of section 26 ' '(c) Where the Authority has ordered the publication of an amendment to the prospectus or of an amended prospectus and the offerer failed to publish it, the offerer shall refund the orderer, within seven days of the expiry of the period fixed under sections 25(a) or 25A(b) respectively, any sum that they paid for the securities; the offerer shall report to the Authority, within the stated period, of the execution of the refund, in accordance with the particulars prescribed in regulations.

237 Amendment 19. In section 27 of the principal Law, subsection (b) shall be replaced by: of section 27 "(b) Where the number of orders placed exceeds the total amount of securities being offered, the offerer shall - ( 1 ) make the allotment in the form and the manner specified in the prospectus. (2) publish the allotment in accordance with the provisions of paragraph (1) in at least two daily papers in the Hebrew circulation, with a wide circulation and published in Israel, within seven days after the expiry of the period for the placing of orders. (3) to reimburse those orderers whose orders have remained wholly or partially unfulfilled within two business days from the time of the allotment, for any sum paid by them for securities that were not allotted to them.

Replacement 20. Section 28 of the principal Law shall be replaced by the following of section 28 section: Investment "(a) Monies paid by the orderers on account of the securities of order shall be held by the offerer in a separate trust account in a banking monies J r corporation and shall be invested as necessary for the maintenance of the principal and bearing profit, until he has fulfilled his obligations under subsection (b) or it becomes clear that he has no such obligations. (b) A offerer obliged to refund monies under sections 26 or 27 shall first return the principal and the profits accrued in the trust account, as provided in subsection (a), until the time of their actual refund. (c) Notwithstanding the aforementioned provisions in subsection (a) the Minister of Finance may, with the approval of the Finance Committee of the Knesset, prescribe by regulations the manner of the investment of the order monies and the cases in which there shall not be a duty to refund profits." Replacement 21. Section 31 of the principal Law shall be replaced by the following: Liability of 31. (a) The signer of a prospectus under section 22, shall be prospects liable towards any person who acquired securities from the offerer, and to the seller or purchaser of securities in the course of trade in or outside the stock exchange, for any damage caused as a result of a misleading particular being in the prospectus. (b) The period of prescription of a claim under subsection (a) for which no claim was filed, shall be two years from the transaction date, or seven years from the date of the prospectus, whichever the earlier.

238 (c) For the purposes of subsection (a) any director of the issuer serving in that capacity on the date upon which the board of directors approved the final version of the prospectus, shall be deemed to have personally signed the prospectus, unless he proves one of the following: (1) He was not aware of the publication of the prospectus, nor was he duty bound to be aware, nor could he have been aware: (2) Immediately upon becoming aware of the misleading particular in the prospectus he gave the Authority reasoned written notice thereof. (d) The aforementioned provisions of subsection (c) shall not derogate from the provisions of section 33.

Replacement 32. Section 32 of the principal Law shall be replaced as of section 32 follows:

Liability of 32. Liability under section 31 (a) shall also devolve upon persons experts whose opinion, report or approval were included in the prospectus with their prior consent, and the period of prescription for a claim under this section shall be as provided in section 31 (b). Amendment 33. In section 33 of the principal Law: of section 33 (1) In paragraph (2) the word "offered" shall be deleted; (2) At its conclusion shall come: "(3) With respect to a person regarding whom it was proved that he acquired the securities after the publication of an immediate report as stated in section 36(c), in which there was an amendment of a misleading particular appearing in the prospectus, the report or approval, respectively; (4) Upon the signatory of a prospectus under section 22(b) and upon the provider of an opinion, report or approval as stated in section 32, if they gave the issuer written notice regarding the amendment of the misleading particular as stated in paragraph (3) and the issuer published it in an immediate report, all of the above being applicable to one regarding whom it was proved that he acquired the securities after the publication of the immediate report.

24. In section 35(a) of the principal Law, the words "after he became aware that Amendment the particular was misleading" shall be followed by the words "or after the of section 35

239 publication of the immediate report as provided in section 36(c) in which the misleading particular was amended".

Addition of 25. After section 35 in the principal Law shall come the following chapter: Chapter Five 1

Chapter Five 1: Trusteeship for Debentures Definitions 35A In this chapter - "debentures" means certificates issued in a series by a company, a cooperative society or any other body corporate, that confers the right to claim money from any corporation as stated, on a specified date, or upon fulfillment of a certain condition, and that does not confer the right of membership or participation in that corporation, and certificates as aforesaid that are convertible into shares, or securities that confer the right to acquire such certificates, but with the exception of certificates issued by the State or under a special Law;

"The Trusteeship Law" - The Trusteeship Law, 5739-19797 Duty to 35b (a) No person shall offer debentures to the public unless the appoint trustee issuer has initially appointed a trustee for the debenture holders; the trustee shall be appointed by a trust deed, to be drawn up between the issuer and the trustee. (b) The Trusteeship Law shall apply to a trusteeship under this chapter, unless specified otherwise in this Law, provided that for the purposes of section 11 of the Trusteeship Law, no waiver may be made of provisions 3(c), 7, 9(a) and 10(d) of the said law. Trust 35C The trustee must be a company registered in Israel, whose Company primary purpose is to engage in trusteeship (hereinafter - trust company). Equity 35D (a)The equity capital of a trust company shall be no less than capital a sum or a proportion of the value of the debentures, as prescribed by the Minister of Finance in regulations approved by Knesset Finance Committee. (b) The Minister of Finance may, after consultation with the Authority and with the approval of the Knesset Finance Committee, prescribe regulations with regards to- (1) the modes of investment of the equity capital, all or a part thereof;

7 SeferHa-Chukkim 5739, p.128; L.S.I. Vol 33, p. 154

240 (2) a report that the trust company shall be bound to submit to the Authority, pertaining to the investment of the equity capital and to any changes in such investment, the particulars to be included in the report, its form, and the times for drawing it up and submitting it. Restrictions 35E A company shall not be competent to be a trustee in any of SJSS me followingcases: 1™1^ (1) the director or manager of the company is the director or the manager of the issuer, of a parent company or associate of the issuer; (2) circumstances exist due to which a conflict may be arise between the company's interest or those of its parent company or associate, and the welfare of the debenture holders: (3) a liquidation order was issued or a receiver was appointed, or a receiver and manager were appointed by the Court; (4) the Company or its director or its manager were convicted of an offence that is prejudicial to their integrity.

Trust Deed 35F. (a) A trust deed shall include, infer alia, the following matters: (1) the sum total of obligations currently binding the issuer by way of debentures, and if secured by a charge on assets, a guarantee or any other kind of undertaking, a description of the property secured, the guarantee or the undertaking, and the circumstances under which they may be enforced. (2) the methods for the release or exchange of the charges, guarantees or other undertakings given to secure the issuer's undertaking under the debenture. (3) the conditions and circumstances under which the trustee will be entitled to demand the immediate payment of the amount due according to the debenture, or to realize charges, guarantees or undertakings given to secure the issuer's undertakings under the debentures. (4) the trustee's duty to convene meetings of the debenture holders, their times, their procedure and the mode of adopting decisions in them. (5) the trustee's fee, expressed as a sum, or proportion of the total undertakings according to the debenture, and the times of payment.

241 (b) The Finance Minister may, in consultation with the Authority and the approval of the Knesset Finance Committee, prescribe by regulations additional matters to be included in the trust deed.

Amendments 35G. The trust deed may not be amended unless one of the in the trust following conditions has been complied with: deed (1) the trustee is satisfied that the amendment does not adversely affect the debenture; (2) the debenture holders have agreed to the change by adoption of a special resolution of the general meeting attended by the holders of at least 50% of the outstanding nominal value of the debentures of the same series was present, or in a postponed meeting, attended by holders of at least ten percent of the said value.

Duties of 35H. (a) The trustee is bound to act in the interests of all the the trustee debenture holders; (b) The trustee must take all necessary measures to ensure, prior to the payment of moneys on the account of the debentures, the validity of every charge, guarantee or other undertaking given by the issuer or by a third party for the benefit of the debenture holders in order to secure the issuer's obligations to the debenture holders; the trustee shall be liable to the debenture holders, for a full and accurate description of the matters described in the prospectus, on the basis of which the debentures were issued;

(c) Where the trustee becomes aware of a substantial breach of the trustee deed on the part of the issuer, he will give notice thereof to the debenture holders and of the actions adopted by him for its prevention or to ensure the issuer's compliance with his obligations respectively;

(d) The trustee shall participate in the general meetings of the issuer, without voting rights. (e) The trustee shall give the debenture holders notification with respect to the place and time for inspection of the annual report regarding the trusteeship matters; the trustee shall send to the debenture holders copies of the report at their request; the Finance Minister may, after consultation with the Authority, determine regulations in Takkanot as to the particulars to be included by the trustee in the said report.

(0 The said notification of the trustee to the debenture holders may also be by way of advertisements in at least two daily

242 \ newspapers, with wide circulation, published in Israel in the Hebrew language. 351. The trustee shall represent the debenture holders in all matters arising from the issuer's obligations towards them. 35J. (a) The issuer shall simultaneously submit to the trustee and to the Authority a copy of every report which he is obliged to submit to the Authority, in addition to a copy of every document that he submits to his shareholders or to the debenture holders, and the particulars of any information given by him to them in any other form; the issuer shall also provide the trustee with any additional information that he may reasonably require, upon demand. (b) The issuer shall report to the trustee, at the time and in accordance with particulars as prescribed by the Finance Minister in regulations, with regard to the assets under charge, and the undertakings given for the securing of the rights of the debenture holders. 35K. A trustee shall neither acquire nor hold debentures belonging to the same series in respect of which he serves as a trustee, nor shall he hold for himself the securities of the issuer or of the parent company, the subsidiary or associate company of the issuer.

35L. A trustee shall not effect transactions in securities which are under his trusteeship for another person's account in accordance with a power of attorney conferring discretion. 35M. The actions of ,'a trustee shall be valid notwithstanding defects in his appointment or his competency. 35N. (a) The trustee's term of office expires when - (1) The conditions specified in section 35C are no longer fulfilled by him: (2) His equity capital has fallen below the sum of equity capital required under section 35D(a); (3) One of the circumstances specified in section 35E becomes applicable to him; (b) A trustee may resign by way of written notification to the person who appointed him and with leave of the Court; The resignation of a trustee shall be effective as of the day specified in the Court's approval.

243 (c) The Court may dismiss a trustee if he has not appropriately discharged his duty, or if the Court found another reason for his dismissal. (d) The holders of ten percent of the balance of the nominal value of the debentures of a particular series are entitled to convene a general meeting of the owners of debentures of the same series, and the meeting may decide, pursuant to a decision adopted by the holders of at least fifty percent of the balance of the nominal value of the debentures of the same series, that the trustee is to be removed from office. (e) Where the service of the trustee has been terminated, the Court may appoint another trustee for such period and under such conditions as it sees fit; the trustee whose service was discontinued shall continue to serve until the appointment of another trustee. (f) The issuer and the trustee shall submit the Authority with an immediate report as provided in section of 36(c) with respect to any of the circumstances specified in subsections (a) to (e). (g) The Authority is also entitled to file an application to the Court under the provisions of this section.

Presence of 350 (a) Where the trustee of the debentures has applied to the the Authority Court or another person has applied to the Court in a proceeding in in proceedings r rr r a which the trustee of the debentures is a side, the trustee shall give written notice thereof to the Authority and to the Exchange. (b) Where the Chairman of the Authority deems that a matter pertaining to the public of debenture holders of any series, is influenced, or involves, or liable to be influenced or involved in a civil procedure before the Court, he may appear in the said proceedings and present his case.

Replacement 26. Section 36 of the principal Law shall be replaced by the following of section 36 . v J 6 section:

Duty of body 36. (a) A body corporate the securities of which were offered to corporates to submit reports the public in accordance with a prospectus, must submit to the Authority and the Registrar, reports or statements according to the provisions of this Chapter for as long as its securities are in the hands of the public; a body corporate whose securities are traded or registered for trading on the Stock Exchange, must submit reports or statements according to this chapter to the Authority, the Registrar and the Exchange.

(b) The Finance Minister will, according to the proposal of the Authority or after consultation with it and with the approval of

244 the Finance Committee of the Knesset, make regulations regarding the particulars that are to be included in the said reports or statements, their form, and times for submission, including the details to be included in the said reports or statements to the best of the knowledge of the directors of the body corporate. (c) Regulations under this section shall relate to any matter which in the opinion of the Finance Minister is of importance to the reasonable investor considering buying or selling securities of the body corporate, and can also relate to any of the matters specified in section 17(b) and which shall require in addition to the periodic reports, immediate reports with respect to particular events. (d) The Finance Minister may make regulations under this section generally or for classes of body corporates or securities, or according to any other form of classification. (e) A body corporate as stated in subsection (a) shall submit to the Authority, at its special request, an immediate report of any issue or matter if in its opinion, such information would be important to the average investor considering either the buying or selling of the securities of the body corporate, or of its parent or subsidiary company. (f) A body corporate as stated in subsection (a) shall submit to the Authority, at its request, explanations, specifications, details and documents pertaining to the information included in a report or statement under this chapter. (g) The Authority may, after providing the body corporate with a reasonable opportunity to state its claims, order the said body corporate to submit, within a prescribed period - (1) a report amending a report submitted pursuant to this chapter, or a report that includes an expert opinion in addition to the expert opinion included therein, should it consider that the report submitted under this chapter was deficient, or that details provided therein by force of the provisions of subsection (f) require the issuing of such an instruction. (2) financial reports and an expert opinion of an accountant in place of the financial reports and the expert opinions that were included in the report that was submitted to the Authority, if in its opinion the same were not drawn up in accordance with accepted principles of accountancy, and the accepted rules of reporting, and do not adequately reflect the state of affairs of the body corporate. (h) • Where the Authority is satisfied that a particular body corporate is unable to submit a report or a statement under this chapter by the date specified in the regulations, it may extend the period for its submission.

Addition of 27. Section 36 of the principal Law shall be followed by - sections 36A - 36C Authority to 36A. (a) Where the Authority finds that it is necessary for the prescribe protection of the interests of the public of investors in the securities manner of presenting of a particular body corporate, it may give instructions as to the particulars manner of presentation of any particular of the financial reports, in the periodic report or an immediate report, provided that instructions in that respect have not been prescribed in the regulations under sections 17 or 36 or in accepted accounting principles or in regular reporting procedures.

(b) Where the Authority finds it necessary for the protection of the interests of the public of investors in the securities, it may prescribe directives as to the presentation of the particulars of the reports as stated in subsection (a); these directives shall be published in the manner determined by the Chairman of the Authority. (c) The validity of the directives under subsection (b) shall be for a period of one year from the date of their publication, unless there were previously determined provisions for the same matter in the regulations under sections 17 or 36 or in the accepted accounting principles and reporting procedures; the Authority may, with the approval of the Finance Minister, extend the validity of the directives for a period that will not exceed one additional year. (d) Where the Authority has given an instruction for a particular matter under subsection (a) to more than one body corporate, it shall be prescribed as a directive under subsection (b) within sixty days. (e) Prior to the prescribing of directives as stated in subsection (b) and prior to the extension of their validity according to subsection (c), the Authority shall provide the President of the Institute of Certified Public Accountant's Association in Israel with an adequate opportunity of presenting his opinion, and during the period of validity of the guidelines, the Accountant's Association of Israel shall publish its opinion regarding the particular matter only with the consent of the Authority.

246 Guarantor's 36B Where the prospectus sets forth the financial reports of a duty to report body corporate which has guaranteed the fulfillment of the conditions of the debentures within the meaning of that term in section 35 A, being proposed by the same prospectus, the provisions of this chapter shall also apply mutatis mutandis, to a body corporate as stated, for as long as the guarantee remains in effect.

Exemption 36C (a) The Authority may exempt a body corporate from from disclosing a particular in its report under this chapter if it finds that reporting the conditions specified in section 19(a)(1) have been fulfilled, mutatis mutandis (b) The District Court may exempt a body corporate from disclosing a particular in a report under this chapter if it is satisfied that the conditions of section 19(a)(2) have been fulfilled, mutatis mutandis; the Attorney General shall be the respondent in an application under this sub-section. (c) Where an exemption from disclosure has been granted under this section, notice thereof shall be given in the report.

28. In section 37 of the principal Law - Amendment of section 37 (1) Sub-section (a) is repealed, and sub-sections (b) and (c) shall be respectively remarked as sub-sections (a) and (b); (2) In sub-section (a) as stated, the following words shall appear in the closing passage: 'Where securities as stated were held by way of the trustee and the trustee gave notification according to this sub-section - the holder shall be exempt; where the holder gave notification as stated, the trustee is exempt". (3) In subsection (b) as stated, the words' 'the provisions of sub-section (b) shall be replaced by "the provisions of sub-section (a)".

29. Section 38 of the principal Law shall be replaced by the following Replacement of section 38 section:

Court Order 38. (a) Where a body corporate fails to make a timely submission of a report under this chapter, or fails to comply with section 36 or section 36A, or fails to make an amendment within the time specified therefore by the Authority, or fails to submit an additional or other report upon being requested to do so by the Authority, the District Court shall, at the request of the Authority, be entitled to order it and its directors to submit the report or amend it or submit an additional or other report, within such time as specified by the Court, and should it be deemed necessary, it may

247 order an interested party to submit a notification as stated in section 37. (b) Where an interested party fails to submit a report under section 37, or who in submission of same, fails to comply with the provisions of the section as stated, the District Court may, at the application of the body corporate, order it to submit such notification or amend it within the period specified by the Court.

Addition of 30. Section 38 of the principal Law shall be followed by the following sections 38A and38B sections: Order of 38A (a) Where a body corporate does one of the following: suspension of trade (1) fails to submit a report or statement under this chapter in the time specified therefor; (2) in submitting a report or statement, fails to comply with sections 36,36A or 37, provided that the Authority is satisfied that the deviation is on matters of substance; the Authority may, after consultation with the Chairman of the Board of Director of the Stock Exchange, and after providing the body corporate with a reasonable opportunity of stating its case, instruct the Exchange to suspend the trade in his securities. (b) Where a report or statement were submitted as required to the satisfaction of the Authority, the Authority shall instruct the stock exchange to renew the trade in the securities of the body corporate. (c) The aforementioned provisions of subsection (a) do not derogate from the authority of the stock exchange under its Articles to suspend the trade in securities.

Civil Respon 38B The provisions of sections 31-34 shall apply, mutatis sibility of an interested mutandis, to the holder of securities of a body corporate, and to an party interested party who submitted a report or statement under sections 36,36A or 37. Amendment 31. In section 40 of the principal Law - of section 40 (1) In sub-section (a) the paragraph indication "23(c)(2) shall be followed by "and the provisions of Chapter Nine referring to them"; (2) In sub-section (b) the words "Chapter Six" shall be followed by "and the provisions of Chapter Nine referring to them", and the words "registered for trade on a Stock Exchange" shall be replaced by "traded".

248 32. In section 42 of the principal Law, the words "conforming to regulations Amendment under section 16" shall be deleted. of section 42

33. In section 44 of the principal Law, the concluding section beginning with the Amendment words "except a document" shall be replaced by the words "except for an of section 44 application for an exemption or a document regarding which an exemption from disclosure was granted.

34. Section 44 of the principal Law shall be followed by the following Addition of section: section 44A

Restriction on 44A A person providing an opinion required under this Law, shall provider of not be an interested party in the issuer to whom the opinion opinion refers.

35. Section 45 of the principal Law shall be followed by: Addition of sections 45A Board of 45A. (a) The Board of Directors of the Stock Exchange until 45D Directiors of (hereinafter - the Board) shall consist of the following: Stock Exchange (1) seven directors elected by the members of the Stock Exchange as provided in its documents of incorporation; (2) five directors to be appointed by the Appointments Committee with the approval of the chairman of the Authority (hereinafter - external directors); (3) a director appointed by the Finance Minister; (4) a director appointed by the Governor of the Bank of Israel; (5) a chairman of the Board of Directors, to be elected by the Board, with the approval of the chairman of the Authority, provided that he complies with the qualifying conditions necessary for an external director as stated in sub-section (f), and who is not an interested party in the body corporate whose securities are registered for trade in the Stock Exchange: (6) the General Director of the Stock Exchange having been elected by the board, provided that he complies with the qualifying conditions necessary for an external director as stated in sub-section (f), and who is not an interested party in the body corporate whose securities are registered for trade in the Stock Exchange; the General Manager of the Stock Exchange shall not have voting rights. (b) The period of office of an external director shall be for two years, and he may be appointed for two additional periods of service each lasting for two years; after the passage of two years

249 from the termination of such office, he may be reappointed as an external director. (c) The period of office of the chairman of the board shall be for five years, and he may be chosen for one additional period of office of five years. (d) For the purpose of this section and section 45B - "Appointments Committee" - a committee composed of three members as follows: ~ (1) the chairman of the Board of Directors; (2) a person elected to a Board of Directors, having previously served as an external director, and who complies with the conditions of competency for an external director; (3) a person appointed by the Chairman of the Authority and who complies with the conditions of competency for an external director; "interested party" - whether himself or together with a member of his family. (e) The appointments committee shall determine its work procedures and the order of its deliberations. (f) An external director shall not be a member of the Stock Exchange or an interested party therein or an employee thereof, or an interested party or employee of a body corporate under the control of a member of the Stock Exchange, or an employee of a person in control of a member of the exchange, or one who provides services for a fee on a permanent basis to one of the above, or who is an interested party by virtue of holding of shares in abody corporate the securities of which are registered for trade in the Exchange; the Minister of Finance, may prescribe in regulations additional criteria for the competency of an external director. 45B. An external director shall cease serving in that capacity prior to the termination of the period of his appointment in the event of one of the following: (1) he tendered a letter of resignation. (2) he was absent from four consecutive meetings of the board of directors, or for six meetings over the year, unless the appointments committee approved his continued service having been satisfied that there was reasonable justification for his absence; (3) in the opinion of the committee he is unable to fulfil his function: (4) in the opinion of the committee there exists one of the conditions disqualifying him from serving as an external director. (b) An external director who resigned from his position in the board of directors prior to the termination of the period for which he was appointed,, shall submit to the Board of Directors a written notification explaning the reasons for his resignation, and shall give a copy of the notification to the chairman of the Authority.

Prohibition of 45C. The provisions of section 5(a) and (b) shall apply to the acquisition of members of the board of directors of the Exchange and the securities employees thereof, except that the notification concerning them under section 5(b) shall be given to the Chairman of the Authority and the chairman of the Board of Director.

Reporting 45D. The Stock Exchange shall, within six months after the end of each accounting year, submit to the Registrar and to the Authority, its financial reports and a statement as stated in section 123 of the Companies Ordinance [New Version] 8.

36. In section 46(b) of the principal Law - Amendment of section 46 (1) In section (3) the word ,'supervision" shall be followed by "and inspection"; (2) The following paragraph shall appear at the end: (12) Reporting duties of Stock Exchange members"

37. Section 46 of the principle Law shall be followed by the following Addition of section: section 46A

Temporary 46A. (a) Notwithstanding the aforementioned conditions of directives section 46, the stock exchange may, at its discretion, prescribe temporary directives for matters dealt with in sections 46(b), or (c), for assessment purposes prior to the directives being prescribed on a permanent basis in the Stock Exchange Rules. (b) Temporary directives require the approval of the Authority. (c) Notification regarding the temporary directives will be submitted by the Authority to the Finance Minister and the Knesset

8 Sefer Ha-Chukkim 5743, p.; L.S.I. Vol 26, p. 103

251 Finance Committee; and they shall come to take effect fourteen days after the submission date of the notification, if until such time no member of the Committee has requested their rescission by the Committee; in the event of such a request, the Committee will discuss it, and the directives take effect thirty days after the request if not rescinded by the Committee. (d) temporary directives shall have effect for a period not exceeding one year, however, with the approval of the Authority, the period may be extended for a period not exceeding one additional year. (e) The Stock Exchange shall report to the Authority, at the time and in the manner prescribed by the Authority, with respect to the manner of fulfillment of the temporary directives and the results of their implementation. (f) The temporary directives shall be published in accordance with the manner published in the Stock Exchange Rules and in the Amedment to the Rules as stated in section 49.

Amendment 38. Section 47 of the principal Law shall be remarked 47(a) and shall be of section 47 followed by the following subsection:

"(b) A person who considers himself aggrieved by a decision of the Stock Exchange other than as specified in subsection (a) and other than a decision during trade in the Stock Exchange, may appeal the decision before the District Court. Notice of the commencement of proceedings under this subsection shall be given to the Authority and the Authority may appear in such proceeding and state its position. Amendment 39. In section 48(b) of the principal Law - of section 48 (1) The words "If the Finance Minister is of the opinion" shall be replaced by the words "If the Authority is of the opinion"; (2) Not relevant to the translation (translator) (3) The words "after consultation with the Authority" shall be replaced by "at the Authority's proposal". ־ Amendment 40. In section 51 of the principal Law (1) The marginal note shall be replaced by "Authority's Supervision of activities of the Stock Exchange"; (2) Subsections (a) and (b) will respectively be remarked (c) and (d) and shall be preceded by the following subsections:

252 "(a) The Authority shall supervise the proper and fair management of the Stock Exchange. (b) Where the Authority is of the opinion, having given the Chairman of the Board of Directors of the Stock Exchange a fair opportunity to state his claims, that the Stock Exchange is operating in contravention of its rules or its directives, or in a manner impeding its proper and fair conduct, the Authority shall call upon the Stock Exchange and instruct it as to the proper course of action.

(3) In sub-section (d) the words "management of Stock Exchange" shall be replaced by "the board of directors of the Stock Exchange".

41. In section 52A of the principal Law the definitions of "associate company" Amendment and "a member of family" - shall be deleted. of section 52A

42. In section 52E of the principal Law - Amendment of section 52E (1) In sub-section (a), after words "principal insider buys" shall come the words "in a company"; the words "of the same body corporate" shall in all places be replaced by the words "of the company in which he is a principal insider" and the words "the same body corporate" shall be replaced by the words "the same company". (2) In sub-section (b) the words "a principal insider" shall be replaced by "a principal insider in the company".

43. In section 521 of the principal Law - Amendment of section 521. (1) In subsectin (a) the definition of "Stock Exchange member's employee" shall be replaced by: "stock exchange member's employee" means a director or employee of a member of the stock exchange, his spouse, another relative dependent on him, or a body corporate controlled by one of the above; (2) The term "stock exchange employee'' shall in all places be replaced by "stock exchange member's employee:

44. Section 52J of the principal Law shall be followed by the following Addition of chapter: Chapter 8 B "Chapter Eight B: Liability for Contravention of Provisions

Liability of 52K. (a) An issuer is liable to the holder of securities issued by issuer it for any damage caused to him as a result of the issuer having contravened any provision of this Law or of regulations thereunder or any provision of the trust deed under which the issuer is under a duty to the trustee for the debenture holders issued by it.

253 (b) The liability provided for in subsection (a) shall also apply to the directors of the issuer, to its managing director and to a person having control of the issuer.

Liability of 52L. A trustee for the debenture holders.is liable towards the Trustees holder of the debentures for any damage caused to him as a result of the trustee having contravened any of the provisions of Chapter Five "A" or of regulations thereunder or any duty imposed upon him according to the trust deed.

Negation of 52M. Liability under sections 52K and 52L shall not attach - Liability (1) To a person who proves that he has take all suitable means to prevent the contravention; (2) To a person who proves that he was not aware of the contravention, and that he did not have to be, or could not have been so aware; (3) To a person who purchased the securities of the issuer at a time when he was aware or should have been aware of the contravention;

Collective 52N. To the extent that two persons or more are liable according Liability to sections 52K to 52M, their liability will be joint and separate; between themselves they bear liability according to the rules applicable to liability in tort.

Amendment 45. In section 53 of the principal Law - of section 53 (1) In subsection (a) - (a) In the opening passage the words "20,000 Pounds" shall be replaced by "four times the fine provided for in section 61 (a)(3) of the Penal Law, 5737-19779 (hereinafter referred to as the Penal Law); (b) Paragraph (1) shall be replaced by the following: (1) Contravenes the provisions of section 15(a) with the intent to mislead a prudent investor; for this purpose, where a person who offers securities to the public without a prospectus the publication of which had been permitted by the Authority, the onus shall be him to prove that he did so without intent to mislead a prudent upon investor;

(2) Contravenes the provisions of section 16(b) and does not prove that he did not do so with the intent to mislead a prudent investor;

9 Sefer Ha-Chukkim 5737, p. 87; L.S.I. Special Volume, p. 103.

254 (c) The provisions of paragraph (2) shall be numbered (3) and paragraph (3) shall be replaced by the following paragraph: "(4) Fails to comply with the provisions of section 36, an instruction of the Authority pursuant to section 36A, a provision applicable to him under section 36B or a provision of section 37, or regulations under the aforesaid sections or causes a report or notification under this Law or regulations thereunder, submitted to the Authority or to the Stock Exchange to contain a misleading particular, and in each case - with the intent to mislead a reasonable investor; for this purpose, where a periodical report or an interim financial report has not been submitted within two months from the final date prescribed for its submission, or more than seven days have passed from the time prescribed for the submission of an immediate report or notification, and they have not been submitted, or have not been delivered in accordance with the Authority's demand, this shall be prima facie evidence that the person under the duty of submitting such report or notification has refrained from submitting them with intent to mislead;"

In subsection (b) - (a) In the opening passage, the words "10,000 Pounds" shall be replaced by the words "three times the fine provided for in section 61(a)(2) of the Penal Law;" (b) In paragraph (1) the number "15" shall be replaced by the number "13"; (c) Paragraph (2) shall be replaced by the following: "(2) fails to comply with the provisions of sections 16(a) to 18(a)"; (d) In paragraph (4), the words "or (b)" shall be replaced by "or 25A(b)"; (e) Paragraph (5) shall be numbered as (6) and shall be preceded by: "(5) Fails to comply with the provisions of section 35B(a) or 35J;" (f) Paragraphs (6), (7) and (8) shall be respectively remarked as (7), (8) and (9) and shall be followed by: "(10) Fails to comply with a demand under sections 56A(a) or 56C(a) at the time indicated therefor; (11) Contravened the provisions of section 56E": (3) In subsection (c) - (a) In the opening section, the number "5,000 Lirot" shall be replaced by "three times the fine provided for in section 61(a)(1) of the Penal Law"; (b) Paragraph (1) shall be followed by: "(1A) Fails to comply with the provisions of section 17(c);" (c) Paragraph (2) shall be followed by: "(3) Fails to comply with the provisions of section 23(c) or with a direction of the Authority under section 23(d):" (d) Paragraph (3) shall be marked (4) and in the closing passage shall come the words: "or of section 25(c)". (e) Paragraphs (4) - (7) shall be replaced by the following: "(5) Fails to comply with the provisions of section 26(b) or (c) or section 27(a)or (b)(3): (6) Fails to comply with the provisions of section 28(a) or (b) or section 30; (7) Fails to comply with the provisions, regulations of section 35D (b); (8) Fails to comply with the provisions of sections 36, 36B or 37 or the regulations thereunder, or with an instruction or directive of the Authority under section 36A; (9) Being an issuer or a body corporate - fails to comply with the provisions of section 44; (10) Fails to comply with the provisions of section 49; (11) Fails to comply with the provisions of section 51(c)"; (4) Subsection (d) shall be replaced with the following subsection: "(d) In the case of a continuing offence against the provisions of sections 36, 36B or 37 or regulations thereunder or an instruction or directive of the Authority under section 36A, the Court may impose an additional fine of one fifth of the fine that it may impose for each day in which the offence continues." (5) Subsection (e) shall be replace with the following subsection; "(e) Where any of the offences specified in this section is committed by a body corporate, the directors and the managing

256 director shall also be responsible for the offence unless they prove either - (1) that the offence was committed without their knowledge and they did not have to know of it, nor could they have been aware of it; (2) that they took all reasonable means to prevent the offence;"

46. In section 54 of the principal Law, in the opening section, the words Amendment "imprisonment for a term of three years or to a fine of 20,000 pounds" shall be of section 54 replaced by the words "imprisonment for a term of five years or to a fine five times the fine provided for in section 61 (a)9(4) of the Penal Law";

47. Section 54A of the principal Law shall be marked 54L and the following Addition of Chapter Nine chapter shall be added prior to Chapter Ten: A

"Chapter Nine A: Class Action

Class action 54A. (a) A person holding a security (hereinafter referred to as "the plaintiff) may bring an action in the name of a class of holders of securities on any grounds regarding which the plaintiff may legally initiate legal proceedings in his own name and against any defendant against whom the plaintiff may bring an action in his own name (hereinafter referred to as "the class action"); (b) Where the cause of action is damages, it shall be sufficient for the plaintiff to show that the damage was caused to him; (c) A judgement in a class action shall constitute res judicata in respect to ail members of the class subject to section 54C(b);

Court 54B. A class action requires the approval of the Court, and the Approval Court shall not approve it unless it is convinced that the following conditions are fulfilled: (1) the action is prosecuted in good faith and there is a reasonable possibility that substantial questions of law and fact common to the class will be decided in the action in favor of the class; (2) the size of the class justifies prosecution of the action as a class action; (3) in the circumstances, a class action is the most efficient and fair way to resolve the dispute; (4) there are reasonable grounds to believe that the plaintiff properly represents the interests of all members of the class;

257 Definition of 54C. (a) The Court, having approved the prosecution of the the class action as a class action, shall define the class in whose name the action shall be presented and shall give directions as to the manner in which the decision shall be published. (b) Whoever is a member of the class defined by the Court shall be deemed to have consented to the action being brought as a class action, unless he notifies the Court of his wish not to be included in the class, within forty five days of the publication of the Court's decision; the Court may, upon application of a particular person, extend the said period if it finds special reason to do so;

Regulations 54E. (a) The shall, by regulations, prescribe rules of procedure regarding the presentation and conduct of a class action. (b) The Justice Minister may by regulations prescribe provisions with regard to the ways of proving the damage caused to each member of the class.

Notice 54F. A plaintiff presenting a class action shall give notice thereof in writing to the Attorney General, to the Authority and to the Stock Exchange in which the securities are registered for trading.

Financing by 54G. (a) A plaintiff wishing to bring an action as a class action the Authority may request the Authority to bear his costs. (b) Where the Authority is convinced that a public interest is involved in the action and that it is reasonably probable that the Court will approve it as a class action, the Authority may bear the costs of the action in such sums and under such conditions as it shall determine.

Advocate's 54H. The Court shall fix the fee for the advocate who shall Fee represent the' class, notwithstanding any agreement between him and the plaintiff; the advocate shall not accept a fee for an amount exceeding the amount fixed by the. Court.

Reimburse• 541. Where the Court has awarded monetary compensation in a ment and class action- Special Compensation (1) it shall, in its judgement, direct that the Authority be indemnified for the financing that it granted under section 54G, in such way and under such conditions as the Court x shall determine; (2) it may direct that a portion as deemed appropriate, of the sum that it has awarded, shall, after deduction of costs and advocate's fees, be paid to the plaintiff who exerted himself in

258 ' the filing and proof of the action, and the remainder shall be distributed amongst the members of the class proportionately to their injuries. 54J. The provisions of this chapter shall not deny a person holding securities, any other judicial remedy against a defendant. 54K. The provisions of this Chapter shall only apply with respect to a cause of action created after the 20th of Cheshvan, 5749 (31 st October, 1988).

48. In section 56(b) of the principal Law, the words "section 38 and section 47" Amendment shall be replaced by "section 14A, 35N(g), 36C(b), 47 and 56A". of section 56

49. Section 56 of the principal Law shall be followed by - Addition of sections 56A -56F 56A. (a) In order to ensure the implementation of this Law, or of the Joint Investments Law, or where a suspicion arises of an offence against one of the said Laws, the Chairman of the Authority, or a person authorized by him in writing for that purpose, may require of any person any information or document concerning the affairs of a body corporate to which one of the said laws applies, including any report, account book, invoice, certificate or other document concerning their affairs.

(b) The Authority shall return any document delivered to it by the person from whom it was taken no later than at the expiry of six months from the day on which the document was delivered to it, unless a charge has been filed in a legal proceeding in which the document may serve as evidence; a Magistrate's Court Judge may, at the request of the Authority or the Attorney General, and having given the person from whom the document was taken a fair opportunity of stating his claims, extend the period under such conditions as it shall determine. 56B. (a) Where a suspicion arises that an offence has been committed against this Law or the Joint Investments Law, a person authorized in writing by the Chairman of the Authority for that purpose, may request of a Magistrate's Court Judge to issue a warrant to enter anyplace, to search it, and to seize any document. (b) The provisions of sections 24, and 26 to 29 of the Criminal Procedure (Arrest and Search) [New Version] Ordinance, shall apply to any document seized under the '5729-1969׳ provisions of this section.

SeferHa-Chukkim 5729,87; L.S.I. Vol 26. D. 103.

259 (c) The provisions of section 56A (b) shall apply to any document seized under the provisions of this section.

Powers of 56C. (a) Where a suspicion arises that an offence has been Investigation committed against this Law or the Joint Investments Law, a person authorized in writing by the Chairman of the Authority for that purpose, may investigate any person who in his view is connected with the matter and may require any such person to appear before him and to provide him with any detail or information concerning the offence. (b) A person authorized for the purposes of sub-section (a) shall have the powers of a police officer of the rank of an inspector under section 2 of the Criminal Procedure (Evidence) Ordinance 1C| and section 3 of the said Ordinance shall apply to any statement recorded by him.

Injunction 56D. Where the Chairman of the Authority has reasonable and temporary grounds to believe that an offence is being committed against this injunction Law or against the Joint Investments Law or regulations thereunder, or that such an offence is about to be committed, he may apply to the District Court with a request that it issue an order prohibiting the commission or the continued commission of the acts forming the subject of the request.

Secrecy 56E. A person authorized under sections 56A, 56B, 56C or 56F, shall not disclose the contents of any information or document coming to him by virtue of his duty, except in pursuance of the interrogation, or to the Chairman of the Authority or an employee of the Authority, according to a directive of the Chairman of the Authority; nothing in this provision shall prevent disclosure at the request of the Attorney General for the purpose of a criminal trial or at the Court's request.

Inspection 56E. Where the Authority considers that the protection of the interests of the generality of investors in securities necessitates an inspection of a body corporate to which the provisions of this Law apply, it may authorize a person, even if not an employee of the Authority, to conduct an inspection and demand documents and information as stated in section 56A; this section shall not apply to the Stock Exchange, to a body corporate, to an insurer as defined in the Insurance Business (Control) Law, 5741-1981.

Commencement 50. This Law shall come into force on the 21st of Cheshvan, 5749 (1st November, 1989).

10 SeferHa-Chukkim 5717, p. 87; L.S.I. Vol 26, p. 103.

260 51. (a) Nothing in the provisions of sections 35C, 35D, or 35E of the principal Transitional Law shall be construed as disqualifying a body corporate that was a trustee by force Provisions of debentures on the eve of the commencement of this Law, from continuing to serve in its that capacity. (b) A trusteeship for debentures created prior to the commencement of this Law shall be subject to the legal provisions that were applicable immediately prior to the commencement of this Law, and the provisions of Chapter El - with the exception of sections 35N(b) to (g) and 350 - shall not apply to it. (c) Directors of the Board of Directors of the Stock Exchange who are serving in that capacity immediately prior to the commencement of this Law shall terminate their service upon the expiry of one month after the commencement of this Law; An external director reappointed as stated, shall not serve in that capacity for a continuous period exceeding six years, and for that purpose, his period of service prior to the commencement of this Law shall be taken into account; the Chairman of the Board of Directors shall not extend his period of service for a continuous period in that capacity for more than ten years, and for this purpose his period of service as Chairman of the Board of Directors prior to the commencement of this Law shall be taken into account.

(d) A person who immediately prior to the commencement of ,this Law was an employee of the Stock Exchange, shall give a notification under section 45C of the principal Law within seven days of the commencement date of this Law. (e) (1) The directives issued by the Stock Exchange prior to the commencement of this Law and which were presented under paragraph (3) (hereinafter - the existing directives) shall be valid for ten years from the commencement date of this Law, as valid on the said commencement date, however they shall expire if their provisions are included, with or without changes, in the Articles of the Stock Exchange under section 46 or in temporary directives, under section 46A of the principal Law. (2) Within the twelve months as stated in paragraph (1), the Stock Exchange is, with the approval of the Authority, entitled to amend the existing directives. (3) Within three months of the commencement date of this Law in the Knesset, the Stock Exchange shall submit the existing directives to Authority, to the Finance Minister and to the Finance Committee of the Knesset; within seven days of the approval of any amendment according to paragraph (2) the Authority shall notify the Finance Minister and the Finance Committee of the Knesset of the amendment; until the expiry of the twelve months as stated in paragraph (1) the Finance Committee of the Knesset is permitted to cancel or amend the existing directives, all or a part thereof, including any amendment made in them.

261 (4) The Finance Minister is entitled, at the request of the Stock Exchange and after consultation with the Authority, to extend the validity of the existing directives for a period not extending one year, and the provisions of paragraphs (1), (2), (3) and (5) shall apply.

(5) Where the Authority considers that the proper and fair conduct of the Stock Exchange necessitates changes in the existing directives, it shall give notice accordingly to the Stock Exchange; where the Stock Exchange has not changed its directives pursuant to the notification of the Authority within the period specified in the notification, the Finance Minister is permitted, at the proposal of the Authority and after having given the Chairman of the Board of Directors a fair opportunity of stating his claims, to change the existing directives in an Order, commencing from the date specified therein; an amendment as stated shall require the approval of the Finance Committee of the Knesset.

Publication 52. This Law shall be published in Reshumot within thirty days of the date of its adoption.

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister for Finance CHAIM HERZOG President of State

262 (No. 76) STATE LOAN (AMENDMENT No. 8) LAW, 5748-1988*

hereinafter referred to as "the Amendment) 5739-1979׳ ,In section 1 of the State Loan Law .1 principal Law"), the expression "4,000,000,000,000 sheqalim" shall be placed by of seclion 1 the expression "28,000,000,000 new sheqalim".

2. In section 7 of the principal Law, the figure "20,000" shall be replaced by the Amendment figure "50,000". ofsection7

YITZCHAK SHAMIR MOSHE NISSIM Prime Minister Minister for Finance CHAIM HERZOG President of State

1

* Passed by the Knesset on. 12 Av 5748 (26 July 1988) and published in Sefer Ha-Chukkim No. 1261 of 13 Av 5748 (27th July 1988), p. 211; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1888 of 5748, p. 219.

263 (No. 77) AUDITORS (AMENDMENT NO. 4) LAW, 5748-1988* hereinafter referred to as) 5715׳ ,Amendment 1. In section 1 of the Accountants Xaw of Section 1 the principal Law), the definition of "accountant" shall be replaced by the following defintion: "accountant" means a person in possession of a valid license under this Law; Amendment 2. In section 2(a) of the principal Law, the following paragraphs shall be inserted of Section 2 after paragraph (8); (9) A senior member of the academic staff in the field of accounting of an institution of higher education, who has been appointed by the Minister of Justice at the recommendation of the Council for Higher Education. (10) A person with tertiary legal education, within the meaning of Section 25 of the Chamber of Advocates Law, 5721-19612 appointed by the Minister of Justice after consultation with the Israel Accountants Association." Amendment 3. In Section 5 of the principal law, the following subsection shall be added of Section 5 after subsection (b); (c) The Minister of Justice may prescribe by regulations different amounts of the annual fee for hired accountants and auditors aged seventy years and above.

YITZCHAK SHAMIR ABRAHAM SHARIR Prime Minister Minister for Justice CHAIM HERZOG President of State

" Passed by the Knesset on 13 Av 5748 (27 July 1988) and published in Sefer Ha-Chukkim No.1261 of 13 Av 5748 (27July 1988), p.212; the Bill and an Explanatory Note were published in Hatza'ot C/Jo/cNo.l608of 5743, p. 42. 1 Sefer Ha-Chukkim of 5715, p.26; L.S.I, vol IX, p. 27; Sefer Ha-Chukkim of 5731, p. 110; L.S.I, vol. XXV, p. 109; Sefer Ha-Chukkim of 5738, p.22 and 199. L.S.I, vol 32, p. 24 and 254. 2 Sefer Ha-Chukkim of 5721, p.78; L.S.I, vol. 15, p. 196.

264 (No. 78) AMUTOT (AMENDMENT) LAW, 5748-1989*

the following section shall be Addition of ,5740-1980׳ ,In section 5 of the Amutot Law .1 inserted after section 5: section 5A.

5A. (a) When an application is submitted under section 2 for the registration of Temporary an amuta the object of which is the raising of monies for saving human life and the reglstratlon• Registrar does not register the amuta within two weeks from the date of the submission of the application otherwise than by reason of a refusal to register it, the founders may apply to the Minister of the Interior to direct how the application is to be examined and that the amuta be registered within a period not exceeding fourteen days from the date of the direction. (b) The- provisions of sections 1,3, and 4 shall apply to the examination and registration of an amuta under subsection (a). (c) The registration of an amuta registered under subsections (a) and (b) shall be valid for one year. (d) Where a year has passed since the temporary registration of an amuta, and the amuta has not been registered under section 5, its assets shall, after its debts have been paid in full, be transferred to another amuta, designated by the Administrator-General appointed under the Administration-General Law, 5738-19782, whose objects are, in his opinion, similar to those of the amuta the validity of whose temporary registration has expired.

YITZCHAK SHAMIR YITZCHAK SHAMIR Prime Minister Prime Minister and CHAIM HERZOG Minister of the Interior President of State

' Passed by the Knesset on 12 Av 5748 (26 July 1988) and published in Sefer Ha-Chukkim No. 1261 of 13 Av 5748 (27 July 1988), p. 213; the Law and an Explanatory Note were published in Hatza'ot Chok No. 1894 of 5748, p. 259. ' Sefer Ha-Chukkim of 5740, p. 210; L.S.I., vol. XXXIV, p. 293. 2 Sefer Ha-Chukkim of 5738, p. 61; L.S.I. Vol. XXXII, p. 70.

265 (No. 79) REGIONAL COUNCILS (ELECTIONS OF COUNCIL HEAD) LAW, 5748-1988 Definitions 1. (a) In this Law: "Municipal Council" means a local council established under section 1 of the Municipal Councils Ordinance [New Version]1, which was convened as a municipal council. "Head of the Council" means the Head of the Municipal Council; "the Minister" means the Minister of the Interior; (b) Other terms referred to in this Law shall have the meaning ascribed to them in the Local Authorities (Elections) Law, 5725-19652, and in the Local Authorities (Election and Tenure of Head and Deputy Head) Law, 5735-19753. System of 2. The Head of the Council shall be elected in personal, direct, equal and elections secret elections; Election date 3. The elections for leadership of the Council shall be conducted at the time of the council elections. Right to 4. (a) Persons entitled to vote for the council may vote for the council elect and be elected leadership; (b) Entitlement to be elected for the council leadership is granted to an Israeli citizen who on the date of the elections is at least 21 years old, and whose permanent place of residence is in the area of the regional council upon the election day and six months preceding it; Proposal of 5. Any group of voters numbering 500 persons or three per cent of the number of candidate the voters, which ever the smaller, may propose a candidate for head of the authority, such person being qualified to be elected as head of the Council under section 4(b). Head of 6. Where the elected Council Head is not council member, he will be deemed a Council who is not a council member with respect to all matters and will be added to the list of voters council established for that council for as long as he serves as the Council Head. member 7. The Minister is charged with the implementation of the Law and he may make regulations for any matter pertaining to its implementation, including regulations for the adjustment of the procedures under this Law to the procedures

Passed by the Knesset on the 13th Av, 5748 (27th July, 1988) and published in Sefer Ha-Chukkim No. 1261 of the 18th Kislev (9th December, 1987) p. 12; the Bill and an Explanatory Note were published in Hatza'ot ChokNo. 1878, 5748, p.210. 1 Dinei Medinat Yisrael (Nusach Chadash) 9 p.250; L.S.I. New Version 2 Sefer Ha-Chukkim 5725, p. 248; L.S.I. Vol 19, p. 261. 3 Sefer Ha-Chukkim 5735, p. 211; 5744, p. 6; L.S.I, vol 29, p. 278, vol. 38, p. 11

266 under the Local Authorities (Elections) Law, 5725-1965 or under the Local Authorities (Election and Tenure of Head and Deputy Head) Law, 5735-1975.

8. This Law shall come into force on the 4th Tevet, 5750 (1st January, 1990). Application

YITZCHAK SHAMIR YITZCHAK SHAMIR Prime Minister Prime Minister and CHAIM HERZOG Minister of the Interior President of State

267 (No. 80) LOCAL AUTHORITIES (ELECTIONS) (TEMPORARY PROVISION) LAW, 5748-1988*

Postponment 1. Notwithstanding the provisions of section 2 of the Municipal Authorities the elections for the ,5742-1982׳ ,of elections (Elections) (Temporary Provision) Law Committees of the Municipal Authorities that were scheduled for the 21st Cheshvan 5749 (1st November 1988) are postponed and shall take place on the 23rd Adar Alef 5749 (28th February 1989)).

Date of 2. The elections for the committees of the local authorities after the elections forthcoming elections under this Law shall take place on the third Tuesday of the month of Cheshvan following the termination of four years from the election day under this Law.

Temporary 3. In the year 5749, the committee of the local authority may decide upon the Provision imposition of a general rate until the 25th Nisan 5749 (30th April 1989).

YITZCHAK SHAMIR YITZCHAK SHAMIR Prime Minister Prime Minister and CHAIM HERZOG Minister of the Interior President of State

Passed by the Knesset on the 12th Av, 5748 (26th July, 1988) and published in SeferHa-Chukkim No. 1261 of 13th Av, 5748 (27th July, 1988) p. 214; the Bill and an Explanatory note were published in Hatza'ot Chok 1906, 5748. p. 298. 1 Sefer Chukkim •5742, p. 203; L.S.I. Vol 36, p. 217.

268 (No. 81) INSURANCE CONTRACT (AMENDMENT NO.2) LAW.5748-1988*

1. After section 28 of the Insurance Contract Law, 5741-1981shall come: Addition of section 28A Special 28A. Where an insurer who provides personal insurance, has interest in good faith not paid those insurance benefits which were not in dispute, at those times at which he was required to pay them under section 27, the court is entitled to obligate him to pay a special interest at a rate that shall not exceed three times the interest fixed in the definition of linkage and interest increments in the Adjudication of Interest and Linkage Law, 5721-19612, which shall be calculated on the said insurance benefits and on the linkage increments to those benefits under section 28, from the dates on which the insurer was due to make the payments in fact; the special interest shall be paid in addition to the interest stated in section 28.

For this purpose, "personal insurance" - life insurance, personal accident insurance, vehicle (property) insurance, insurance of dwellings and their contents, with the exception of liability insurance. Translator's note - the reference does not appear in the original Hebrew Text.

2. The provisions of section 1 shall also apply to insurance benefits that are Transition payable in respect of an insured event that occurred prior to the commencement of Provisions this Law, provided that the special interest shall be calculated for the period commencing on the date on which the insurer was required to pay the insurance benefits stated in that section or beginning at the expiry of 30 days from the commencement of this Law, whichever the later.

YITZCHAK SHAMIR AVRAHAM SHARIR Prime Minister Minister of Justice CHAIM HERZOG President of State

' Passed by the Knesset on 29th Sivan, 5748 (14th June, 1988) and published in Sefer Ha-ChukkimNo 1262 of 13th Av, 5748 (27th July, 1988) p. 216; the Bill and an Explanatory Note were published in Hatza'ot Chok 1868, 5748, p. 119. 1 Sefer Ha-Chukkim 5741, p. 98; L.S.I, vol 35, p. 91. 2 Sefer Ha-Chukkim 5721, p. L.S.I. Vol 26, p. 103.

269 (No. 82) TRAFFIC ORDINANCE (AMENDMENT) (NO. 21) LAW, 5748-1988* Amendment 1. In section 69C of the Traffic Ordinance'- of section 69C (1) In subsection (a), after "for a transport offence" shall come "under sections 64 through 67 or for a transport offence included in the First Appendix or in the Second Appendix;"; (2) After subsection (b) shall come: "(c) "Corporation", for the purposes of this section - excluding a corporation whose members are obliged to put their full manpower and property at its disposal;"

YITZCHAK SHAMIR CHAIM KORFU Prime Minister Minister of Transport CHAIM HERZOG President of State

Passed by the Knesset on 13th Av, 5748 (27th July, 1988) and published in SeferHa- Chukkim 1262 of 13th Av, 5748 (27th July, 1988) p. 216; the Bill and an Explanatory Note were published in Hatza'ot Chok 1906, 5748, p. 298. Dinei Medinat Yisrael, Nusach Chadash 7, p. 173; L.S.I. New Version, ; Sefer Ha-Chukkim 5748, p.50; L.S.I vol. 42, p. 44.

270 (No. 83) POLICE ORDINANCE (AMENDMENT NO 9) LAW 5748-1988*

hereinafter- Amendment) 5731-1971׳ (In section 1 of the Police Ordinance (New Version .1 "the Ordinance"): of section 1 (1) The definition of "senior police officer" shall be deleted and be replaced by the following definitions: "senior police officer" - a police officer with the rank of deputy commander and above; (2) After the definition of "senior police officer" shall come: "Israel Police Regulations" - police rules and regulations of National Headquarters which shall be issued in accordance with section 9A "judicial officer" - a police officer with the rank of superintendent or above who is not the senior judicial officer or a police officer with the rank of superintendent who the Inspector general shall appoint. "senior judicial officer" - a police officer with the rank of deputy commander or above. "judge sitting alone" - a judicial officer or senior judicial officer, "disciplinary offence" - an offence as specified in section 50.

2. After section 9 of the Ordinance the following sections shall be added: Addition of sections 9A-9C Publication 9A. The Inspector general shall, with the approval of the of Israel Inspector general make general regulations specifying the Police Regulations principles for the organization of the police, its management, its policy and its disciplinary procedures for its orderly operation (hereinafter - "the police regulations"); (2) The Inspector General shall make general regulations which shall specify details relating to the matters referred to in -subsection (1) (hereinafter - "National Headquarters Regulations"). 9B. (1) Israel Police Regulations shall be published in such manner as the Inspector General shall decide and shall come

* Passed by the Knesset on the 13th Av, 5748 (27th July, 1988) and published in SeferHa-Chukkim No. 1262 the 13th Av 5748 (27th July, 1988) p.217;theBill and an Explanatory Note were published in Hatza'otChok No. 1827,5747, p.218. 1 The Laws of the State of Israel, New Version Number 17, Page 390 Sefer Ha-Chukkim 5742, page 201; L.S.I. vol. 36 p. 214.

271 into force on the date of publication; Israel Police Regulations shall not require publication in Reshvmot. (2) Israel Police, regulations regarding which the Attorney- General in consultation with the Inspector- General or persons's authorized by him for that purpose, which concern or are of importance to the general public shall require additional publication in Reshumot.

Legal effect 9C (1) For the purpose of this Ordinance Israel Police of Israel Regulations shall be considered as Laws; Police Regulations (2) In the event of any conflict between Israel Police the ־ Regulations and National Headquarters Regulations Israel Police Regulations shall prevail; (3) In the event of any conflict between National Headquarters Regulations and any other regulations, the National Headauarters Regulations shall prevail. Replacement Section 18 of the Ordinance shall be replaced by the following section: of section 18 Retirement 18. (1) A police officer shall not resign from service except and of an officer unless 3 months prior notice thereof has been given to the Inspector-General: failing this he shall be regarded as being absent from duty without leave. (2) Notwithstanding the provisions of subsection 18(1) the Inspector-General shall, at the request of a police officer, be permitted to allow such officer to resign from the force even if three months have not elapsed from the date of service of notice. Amendment 4. In section 49b of the Ordinance the following subsection shall be inserted of section 49(b) after sub-section (2):

"(3) In addition to the provisions of sub-section (2) the Police shall be permitted to assist the Border Guard including in its functions in safeguarding general security, persons and property which shall be provided in regulations which shall have the authorization of the Knesset Committee for Internal Affairs and Environment. (4) A member of the Border Guard shall not engage in any of the activities specified in subsection (3) unless he has received the appropriate training as specified in the Regulations. Replacement 5. Chapter 5 of the Ordinance shall be replaced by the following Chapter: of Chapter 5

272 CHAPTER 5: DISCIPLINARY RULES 50. (1) A disciplinary offence means an offence against good order and discipline as specified in the Appendix. (2) The Minister with the approval of the Knesset Committee for Internal Affairs and Environment shall be permitted by Order to add to the Appendix or to derogate therefrom. 51. An officer who is charged with a disciplinary offence shall be tried before a disciplinary tribunal or before a judge sitting alone in accordance with the provisions of this Ordinance. 51 A. In judicial hearings held in accordance with this Ordinance there shall be no authority over the judge other than the Law and nor shall he be subject to the authority of his commanding officer. 51B.(1) A hearing of a disciplinary court or an appeals court in accordance with this Ordinance (each one being hereinafter called "a court") shall be conducted in open court except if the Inspector-General decides that it shall be heard in camera because in his opinion the matter warrants it in order to prevent a breach of State security. (2) The court shall be permitted at any stage of the hearing, for reasons which it shall stipulate, to hold the hearing whether in whole or in part in camera if in its opinion the matter warrants it in order to prevent a breach of State security, for the public good or for police discipline. (3) Should the Inspector General or the Court decide in accordance with the authority provided by subsections (1) or (2) to hold the hearing in camera they shall have the authority to allow any person or any group of persons to be present at the time of the hearing whether in whole or in part.

Disturbance 51C. The Court shall have authority to order the detention of any of hearing person who disturbs the deliberations of the court or who behaves in such a manner as shall prejudice the honour of the court.

Proceedings 5ID. The Court shall have authority to detain a party to in the absence proceedings who shall disturb the hearings of the Court; if this shall of a party happen, the proceedings of the court shall be brought to the attention of the detained party in such manner as the Court shall determine.

Contempt 5 IE. (a) A person not being a police officer who commits one of Court of the following offences shall be sentenced to three months imprisonment:-

273 (1) if he is lawfully summoned to appear before the Court and does not appear or appears but he leaves before being given permission to do so or does not give sufficient reason for his absence or departure; (2) if he is warned by the Court but does not reply as required by the Law; (3) if he is required by the Court to produce a document in his possession and without lawful justification withholds its production; (4) while testifying in court fails to answer a question which he is lawfully required to answer or knowingly answers evasively answer without lawful justification; (5) he causes a disturbance or a suspension of the proceedings of the Court. (b) A person not being a police officer and who is in contempt of court in accordance with the provisions of this Ordinance by reason of the use of insulting language or by threats - shall be sentenced to six months imprisonment. (c) The authority to deliberation over offences under the provisions of this section shall be vested in the hands of the Magistrates Courts.

Order to 5IF. Where a party having been summoned to testify, fails to produce documents appear, or having been ordered to produce a document to the Court fails to produce it, the Court shall be empowered, if it deems that the party's failure to appear or produce the document is without just cause, to order him to appear before the Court at a time specified in the warrant (hereinafter - "the warrant");

Execution 51G. A warrant shall be executed in accordance with execution of of Warrant warrants under section 73A of the Courts Law [Consolidated Version] 5744-19842

Accomplice to 52. The provisions of Chapter 4 of the Penal code 5737-19773 a disciplinary offence shall apply mutatis mutandis to disciplinary offences in accordance with this Ordinance. Prescription 53. (a) A police officer shall not be tried by a disciplinary court of offence for a disciplinary offence if three years shall have elapsed from the date the offence was committed; and in respect of a disciplinary hearing before a judge sitting alone if a year has elapsed since the offence was committed.

2 Sefer Ha-Chukkim 5744, p. 198; L.S.I. Vol. 38, p. 271; 5745, 138, L.S.I. vol 39. p. 148. 3 Sefer Ha-Chukkim 5737, p. 226; L.S.I. Penal Law, Special Version. (b) Where an investigation is being conducted against a police officer , the period mentioned in subsection (1) shall not begin until the last day of the investigation. 54. A sentence imposed by a disciplinary court shall not be executed, and if execution shall have been stayed, shall not restart if three years have elapsed from the date of the judgement having been made absolute or from the date of the stay, whichever the later.

No double 55. A police officer shall not be tried in disciplinary proceedings jeopardy for in respect of a matter of which he was acquitted or for which he was disciplinary offences convicted in accordance with this Ordinance.

Disciplinary 55A. The liability of a police officer in respect of a disciplinary Hearing in matter shall not lessen his criminal liability in respect of any act or Addition to Criminal recklessness, and it shall be permitted to commence disciplinary Proceedings proceedings against him notwithstanding his having been convicted or acquitted in respect of any act or recklessness by a Court of Law.

Disciplinary 55B. (a) Where a complaint is lodged against a police officer Proceedings before a judge sitting alone or a charge filed against him in a and Criminal Proceedings disciplinary court and a charge filed against him in respect of the same act or recklessness in a Court of Law by way of a criminal offence or if the Attorney General shall announce that it is his intention to file charges then notwithstanding the provisions of section 55A the disciplinary proceedings shall be stayed until determination of the criminal proceedings and this shall be the case if a complaint or a charge shall be filed after a charge has been filed in a Court of Law in respect of a criminal offence as aforesaid. (b) Upon completion of the criminal proceedings or if the Attorney-General shall announce that he has withdrawn his intention to file a charge the disciplinary proceedings shall continue. (c) Subsection (1) shall not apply if one of the following shall occur: (1) the police officer against whom a complaint has been filed for hearing by a judge sitting alone or a charge filed for hearing by a disciplinary court agrees to tried first in the disciplinary proceedings; (2) the judge sitting alone be the disciplinary court decides at the application of the Attorney-General that the circumstances

275 of the matter compel the disciplinary proceedings precede the criminal proceedings. (d) Nothing in this section shall derogate from the power to suspend in accordance with this Ordinance.

Privileged 55C. Notwithstanding the provisions of section 55 A nothing said Communication by the accused in the disciplinary hearings shall be used against him in criminal proceedings.

Judgement in 55D. The findings and conclusions of the judgement which shall Criminal be handed down in any criminal proceedings instituted against a Proceedings police officer shall be considered as proven in the disciplinary proceedings against the same officer.

Disciplinary 55E. Where a police officer is included with other professionals Jurisdiction Under who are subject to any law relating to disciplinary proceedings Another Law other than those of this Ordinance, he may be tried under this Ordinance, even if he was already tried in respect of the same act or ommission in accordance with the other law, and it shall also be permitted to try him in accordance with that law even if he was already tried in accordance with this Ordinance.

Imposition 56. (1) A disciplinary Court or judge sitting alone who have of Damages convicted a police officer of a criminal offence are authorised to impose upon him, in addition to any other sentence, the payment of damages which were caused directly by the offence. However the the sum of damages imposed under the provision of this sections shall not be in excess of his current monthly salary at the time the damages were imposed.

(2) The imposition of damages under this section shall not be exempt from tortious liability under any other law.

Collection of 57. (1) A police officer having been obligated by a disciplinary fines and damages court to pay a fine or damages, the fine or damages shall be collected by way of deduction from the sums due to him from his service in the police force, in such manner as shall be prescribed by Israel Police Regulations on condition that the rate of deduction shall not in any one month exceed the rates prescribed in section 8 of the Wages Protection Law 5718-1958'4. . (2) Fines and damages which are collected as stated in sub-section (1) shall be paid into the General Funds of the Israel Police Force.

Sefer Ha-Chukkim 5748, p. 86. L.S.I, vol 12, p. 100.

276 58. (1) A custodial sentence shall be served in a police establishment as determined by the Inspector-General or in an army base. (2) The Inspector General shall prescribe the set up of the management security and regime in the location that shall be prescribed for the service of the custodial sentence and the rest of the measures which it shall be permitted to take in respect of the detainee held in such locations for the maintenance of discipline and to safeguard the rights and security of the aforesaid detainee. 59. (1) The Inspector-General shall be permitted on account of special circumstances which shall be recorded, to commute a sentence which shall have been imposed in a disciplinary case, or to reduce or to impose a lighter sentence, on condition that no appeal has been lodged and the time for lodging an appeal has elapsed. (2) A police officer having had imposed upon him the payment of damages in accordance with section 56 the Inspector-General may for special reasons cancel the imposition of damages or reduce the rate thereof.

Dismissal by 60. The Inspector-General shall be empowered to dismiss a police reason of officer who shall be tried in disciplinary or criminal proceedings disciplinary or criminal even if acquitted, if he shall be of the opinion, because of the hearing disciplinary or criminal hearings that the police officer shall not be suitable for continued service in the police force and on condition that a senior police officer shall not be dismissed without the approval of the Minister.

Conditional 61. (1) A custodial sentence having been imposed on the sentence accused in disciplinary proceedings, a judge sitting alone or court shall be entitled to rule in the verdict that the sentence, whether in whole or in part shall be conditional. (2) Anyone who shall have a conditional sentence imposed upon him shall not serve such sentence if he shall not commit, within a period as shall be specified in the verdict, which shall not be less than one year nor greater that three years (hereinafter - "the conditional period") one of the offences which shall be specified in the verdict and he shall not be convicted in respect of this offence (hereinafter - "the additional offence") during the additional period or thereafter.

277 (3) The conditional period shall commence from the date of the verdict. (4) The specification of the offences in accordance with sub-section (2) shall be classified as either a type of offence or by detailing particular offences, either by way of description or by way of reference to a legal directive; should a reference to a legal directive subsequently be annulled and be replaced by another directive then the verdict shall be considered as having made by reference to that other directive.

Cancellation 62. (1) The Inspector-General shall be entitled to determine that of the appoint• ment of a any disciplinary court judge shall cease to function in that disciplinary capacity if he shall be convicted of an offence or if an court judge investigation shall be conducted against him. (2) The Inspector-General shall terminate the appointment of a disciplinary court judge who shall cease to be a police officer, however he shall be permitted to allow him to complete the hearing of a matter which he has commenced. (3) A termination as is mentioned in sub-section (1) in respect of a member of the court who is not a police officer shall be with the authority of the Minister of Police.

Replacement 63A.(1) A judge in a disciplinary matter having died, or being of a judge prevented from sitting in judgement for any other reason, the Inspector-General shall appoint another judge to sit in his place: the judge sitting alone or a newly composed court, shall be entitled to recommence the matter from the point that had previously been reached, if the accused shall not object. (2) sections 66(1) and 74 shall apply also to someone appointed in accordance with this section.

The general 64. In •a disciplinary hearing held under the provisions of this rules of evidence Ordinance the general rules of evidence as used in a Court of Law shall not shall not apply. apply

Proceedings 64A. In any procedural matter for which no directive is contained in the absence of in this Ordinance or in the rules which have been promulgated in Procedural accordance with it the Judge shall proceed in such manner as appears to him to be the best in order to obtain a fair trial, and on condition that he shall in such case give reasons for his decision.

278 64B.( 1) The Minister with the approval of the Knesset Committee for Internal Affairs and the Ecology shall determine the procedural rules, including the procedure for the service of documents, in accordance with which the disciplinary proceedings shall be convened and conducted in accordance with this Ordinance. (2) An officer shall not stand trial in a disciplinary hearing except in accordance with rules which shall be promulgated in accordance with this section.

Standing trial 65. (1) The rank of a judge sitting alone shall be two ranks before a judge higher at least than that of the accused; however the sitting alone Inspector-General shall be entitled to judge the accused even if the rank of the accused is only one rank lower. (2) A judge sitting alone in disciplinary hearings against a police officer with the rank of commander or higher shall be a senior judicial officer only.

Transfer of 66. (1) After the reading of the complaint the accused shall be hearing to entitled for reasons which he shall specify in his application to another judge sitting alone request the transfer of the hearing to another judge sitting alone: the judge sitting alone shall be entitled to decide to transfer the hearing to another judge sitting alone; if he shall decide not to transfer the hearing as aforesaid he shall set out his reasons for this in his decision. (2) Where an accused with the rank of 'Tat-Nitzav" or higher is standing trial before the Inspector-General and requests a transfer in accordance with sub-section (1) the trial of his matter shall be transferred, if the Inspector-General shall accede to the request to the Rav Nitzav or to a retired judge who shall be appointed by the Minister for the purpose.

Sentencing 67. (A) A judge sitting alone shall be entitled to impose the authority of following sentences whether in whole or in part a judge sitting alone (1) If he is a Judicial Officer (a) a reprimand (b) a severe reprimand (c) a fine which shall not exceed five days salary as specified in Israel Police Regulations (d) confinement to a police force establishment for a period not exceeding 5 days

279 (2) If he is a Senior Judicial Officer (a) a reprimand (b) a severe reprimand (c) a fine which shall not exceed ten days salary as specified in Israel Police Regulations (d) confinement to a police force establishment for not longer than 10 days (e) detention for not longer than 25 days (B) A judge sitting alone shall not impose a sentence of detention except on a police officer who shall be carrying out his duties in accordance with the Defense Service Law [Consolidated Version] 5746-19865 (hereinafter - the Security Services Law) in the Police Border Guard. Postponement 68. If a sentence shall be imposed by a judge sitting alone and the of execution of sentence accused shall give notice at the time the verdict is handed down of his intention to appeal against the judgement, then the judge sitting alone shall be entitled to order the postponement of the execution of the sentence until the decision in the appeal.

Appeal against 69. (1) An officer who shall be convicted by a judge sitting alone judgement shall be entitled within 15 days from the date he shall be notified of the judgement to file an appeal, in writing, in a manner prescribed by the Israel Police Regulations. (2) A Senior Judicial Officer who shall preside over an appeal shall be entitled to hear the matter even if it shall have been submitted after the period mentioned in sub-section (1) if it shall be proved to his satisfaction that there was reasonable justification for the delay. (3) In an appeal as aforementioned it shall be permissible to appeal also against a liability for the payment of damages imposed in accordance with section 56. Authority of 70. (A) A Senior Judicial Officer presiding over an appeal shall a Senior Judicial Officer be entitled to do one of the following: presiding over an (1) To accept the, appeal and acquit the accused appeal (2) To reduce the sentence (3) To dismiss the appeal

(B) If the appeal shall also relate to a liability in damages the Senior Judicial Officer shall also be entitled to cancel or reduce the amount of the damages. SeferHa-Chukkim 5746, p. 107, L.S.I, vol. 40, p. 112.

280 Article 3: Disciplinary Court 71. The Inspector General shall establish a Disciplinary Court which shall try officers on disciplinary offences and shall appoint the judges who shall hold office in it.

Disciplinary 72. (1) The Disciplinary Court Board shall deliberate with three Court Board senior police officers one of whom at least shall be a member of the Israel Bar Association. (2) The Disciplinary Court Board which shall try an offence by a police officer, in accordance with sections 8 - 19 of the Schedule, as opposed to someone who is not an officer, shall be composed of two senior police officers of whom one at least is a member of the Israel Bar Association, and an additional judge which the Inspector-General shall appoint from a list of public representatives who are eligible to be appointed as judges of the Magistrates Court, which shall be drawn up by the Minister with the agreement of the Justice Minister. (3) The Inspector-General shall appoint the President of the Court from the judges ; in respect of subsection (2) die President shall be elected from judges who are Police Officers.

Rank of 73. A judge shall not sit in a disciplinary court where his rank is judges lower than the rank of the accused.

Opposition to 74. The accused shall be entitled to apply to the Disciplinary composition Court with a reasoned application to disqualify a judge who is (of the Court) presiding at his trial; if the court shall accept the application the judge to whom the application related shall withdraw and another shall be appointed in his place; if the application shall be refused - the accused shall be entitled to appeal against the refusal before the Inspector-General, in the manner specified in Israel Police Regulations.

Penalties 75. If the accused shall be convicted of an offence, the Court shall be entitled to impose on him the following sentences, whether in whole or in part: (1) a reprimand (2) a severe reprimand (3) a fine which shall not exceed a monthly salary as shall be determined by Israel Police Regulations (4) confinement to a service establishment for a period which shall not exceed 45 days

281 (5) detention for a period not exceeding 45 days (6) reduction in rank

Postponement 76. Where the Disciplinary Court has imposed a penalty on the of execution accused and the accused signifies, at the passing of the sentence, his of sentence intention to appeal against the judgement, the court shall be entitled to order postponement of the execution of the sentence until the decision in the appeal.

Article 4: Appeals Court

Appeal 77. (1) Those permitted to appeal against any finding or sentence or verdict-include an accused who has been convicted by a disciplinary court, the Inspector-General or someone authorised for this. (2) An appeal shall be by way of the filing of a statement of appeal signed by the appellant or his attorney, in the Appeals Court, in manner prescribed by Israel Police Regulations.

Period for 77A. The period for filing an appeal is 45 days from the date the filing an verdict is given; if the verdict shall be given when either the Appeal accused or the prosecutor shall not be present, then the period for filing the appeal shall commence from the day upon which he shall be apprised of the verdict, in such manner as is prescribed by Israel Police Regulations.

Extension of 77B. The Appeals Court shall be entitled, at the request of the Time appellant, to permit the filing of the appeal after the period of time as mentioned in section 77A for filing it has expired.

The Appeals 77C.(1) The Minister shall set up an Appeals Court which shall Court hear appeals on verdicts of the Disciplinary Court and he shall appoint the judges who shall hold office therein. (2) Hearings of the Appeals Court shall be presided over by three judges who are senior police officers, of whom one of them at least shall be a member of the Israel Bar Association; the President of the Court shall be of the rank of Nitzav.

Representative 77D. The Inspector-General or any one authorised in that behalf of the Inspector- General shall appoint a senior police officer who shall represent him before the Appeals Court as respondent or appellant, in accordance with the matter.

Summons 77E. The Appeals Court shall be summoned by writ of summons executed under the hand of the Inspector-General; the Writ of

282 Summons shall specify where the Court shall sit and the time of commencement of the hearing and shall be sent to the appellant and the respondent.

Withdrawal 77F. The appellant shall be entitled to withdraw from his appeal of Appeal at any stage of the appeal proceedings, however a party which has completed his pleadings, shall not be entitled to withdraw from his appeal without the authority of Appeals Court.

Authority of 77G. The Appeals Court shall be entitled to do one of the the Appeals following: Court (1) to accept the appeal, in whole or in part, to amend the verdict given by the court of prior instance, or to nullify it and give another in its place; (2) to reject the appeal; (3) to allow in connection with the verdict, any other decision which the court of prior instance was authorised to give,' with the exception that the Appeals Court shall not impose on the accused a penalty more severe as that imposed on him, unless the appeal has been lodged in respect of the leniency of the sentence. (4) to return the matter to the court of prior instance, with instructions.

Final 77H. The verdict of an Appeals Court is final. verdict Article 5: FURTHER PROVISIONS

Periods which 771. In respect of a policeman who carries out his duties in shall not be accordance with the Security Services Law in the Police Border counted towards a Guard, there shall be no eligibility as periods of compulsory service period of in accordance with the Security Services Law, for periods for which Security Service he is detained under the terms of a sentence, or for the periods of absence from the service without leave upon which he has been tried, unless permitted by a decision otherwise of a judge sitting alone, a disciplinary court, an appeals court or Court of Law.

Suspension 77J. The Inspector-General shall be entitled to suspend from duty a police officer against whom an investigation is being conducted in respect of the commission of a (criminal) offence or a disciplinary offence, but he shall not suspend a senior police officer without the authority of the Minister.

Salary during 77K.(1) There shall be paid to a police officer on suspension, for time of the period from the commencement of his suspension until the suspension

283 time he is acquitted or convicted, a proportion of his salary as the Inspector-General shall see fit, on condition that the aforesaid proportion shall not be less than one half of his salary. (2) A police officer who has been suspended and is not brought to trial or who is brought to trial and is acquitted, shall be entitled to be paid his salary for the period of his suspension. (3) If a police officer shall stand trial on some of the offences due to which he had been suspended, or if he shall be acquitted of some of the offences on which he is standing trial, the Inspector-General shall be entitled, for reasons which he shall record, to direct that there shall be paid to him such salary as he would have been paid had there been no suspension, with a reduction of part of the salary which had been received in accordance with sub-section (1) for the period of suspension, on condition that there is no direction to dismiss him from the police force; a police officer who is dismissed from the force shall not be entitled to be paid his salary. (4) If a police officer shall be remunerated from additional employment, during his period of suspension, the salary he shall receive from his additional employment shall be deducted from the salary that shall be paid to him in accordance with subsections (2) and (3).

No salary in 77L. A police officer who has been convicted for absence without respect of days of leave or who has been placed under arrest or imprisonment, shall absence or not be entitled to be remunerated for any day or part of a day during imprisonment the absence, arrest or imprisonment.

Substitution 6. In place of section 94 of the Ordinance there shall be inserted: of ,section 94 Implementation 94. The Minister shall be in charge of the implementation of this and Regulations Ordinance and he shall be entitled to enact regulations to implement it.

Repeal of 7. Section 95 of the Ordinance is hereby repealed. section 95 Repeal and 8. The Appendix to the Ordinance is hereby repealed and the following shall be substitution of the inserted in place of it: Appendix

284 APPENDIX (section 50) DISCIPLINARY OFFENCES 1. Non-compliance with an order being an order of Israel Police Regulations or any other order duly given, or a refusal to fulfil an order as aforesaid. 2. Negligence in performance of duty. 3. Conduct unbecoming a police officer or which is likely to damage the image of the police force. 4. Wrongful use of the authority bestowed by virtue of his position. 5. Absence from duty without justifiable reason. 6. Absence from service with the intention not to return to it; absence from the service for a period of 21 consecutive days without permission, shall be considered, for this purpose, as an intention not to return to the service, unless proved otherwise. 7. Not making reasonable efforts to prevent the commission of an offence which the police officer knows is about to be committed, or to uncover an offence or to bring a suspect of the commission of an offence to trial. 8. Conducting a search or making an arrest or entry onto private property which is unlawful or not in good faith. 9. Refusal to supply details of identity or personal number or concealing details as aforesaid. 10. Pretence to another rank or to someone with other authority. 11. Giving a false declaration, concealment of information which he is bound to supply or the use of other unlawful means to place restrictions on the police force, or in order to obtain a position or rank or in order to evade duty. 12. The possession use or destruction of police equipment in contravention of Israel Police Regulations and without justifiable reason. 13. The possession or use of a fire-arm, ammunition, explosive substance or other dangerous material, without authority, without the required level of caution or in contravention of Israel Police Ordinances; for this purpose "fire-arm" shall have the meaning ascribed in the Fire-Arms Law 5709-19496. 14. Divulging or supplying material relating to the Police force, to an unauthorised person without duly receiving permission. 15. Applying, without duly receiving permission, to an authority outside of the Police force in any matter concerning service in the police force; for this purpose "authority outside of the police force" - excludes a Court of Law.

6 Sefer Ha-Chukkim 5709, p. 143, L.S.I, vol. 3, p. 61. 16. Insolence or the use of abusive language toward the public when in the execution of his duty or when he is in police uniform. 17. The unjustifiable refusal to fulfil a reasonable request of a member of the public which has been made of him because he is a police officer. 18. Taking an advantage of his position as a police officer which shall not be for the purpose of carrying out his duties. 19. (1) The use of force against someone in the course of carrying out his duties in contravention of Israel Police Regulations or any other instruction which shall have been duly given. (2) The placing of someone on trial under the provisions of this section shall be submitted to the decision of the Attorney-General or someone authorised for this. 20. The commission of one of the following during proceedings, without justifiable reason (1) Non-appearance or appearing late for proceedings to which he has been duly summoned; (2) Leaving a place where proceedings are being conducted without permission; (3) Non production of a document which he is lawfully required to produce (4) Not responding or giving an evasive or false response (5) using insulting or threatening language or causing a disturbance or interruption; (6) the publication of a matter which is being tried in camera, without the" permission of the person who is judging the proceedings; For the purpose of this section "proceedings" - shall mean a trial in a court of law, disciplinary hearing or enquiry. 21. The commission of an action which is intended to prevent, to delay or to hinder in any way the submission or transmission of a complaint to the Police Service Ombudsman. 22. The commission of an action which is intended to prevent, to delay or to hinder in any way the submission or transmission of a complaint to the Police Public Complaints Commissioner. 23. A refusal to render assistance requested by the Police Service Ombudsman in order to clarify a grievence or complaint, the supply of false information in the course of the clarification or its obstruction in any other way.

286 24. A refusal to render assistance which is requested by the Police Public Complaints Commissioner in order to clarify a complaint, the supply of false information in the course of the clarification or its obstruction in any other way.

9. (1) The commencement of this Law will be at the expiry of six months Commencement from the date of its publication (hereinafter - "the commencement and inception day"). (2) The provisions of this Law shall - (i) also apply to disciplinary offences which a police officer shall have committed before the commencement day and for which he shall not have stood trial before a disciplinary tribunal, on condition that it shall have been permissible for him to have stood trial before a disciplinary tribunal on the said disciplinary offences before the commencement day; (ii) shall not apply to proceedings pending on the commencement day.

10. (1) Standing orders which are published prior to the commencement Confirmation day, shall be considered as Israel Police Regulations which were of validity and adjustment published in accordance with this Law, but the provisions of section of terms 9B(2) of the Ordinance shall apply to them. (2) In every place in the law where "the Rules of the Police Service" or "Standing Orders" are mentioned they shall be read as if "Police Regulations with the meaning ascribed by the Police Ordinance" was mentioned.

11. This Law shall be published in Reshumot within thirty days of its Publication passing.

YITZCHAK SHAMIR CHAIM BAR-LEV Prime Minister Minister of Police CHAIM HERZOG President of State

287 (No. 84) PRISONS ORDINANCE (AMENDMENT NO 9) LAW 5748-1988*

Amendment 1. In clause 1 of the Prison Ordinance (New Version) 5731-19711 (hereinafter- to clause 1 "the Ordinance") (1) In substitution for the definition for "senior prison officer" there shall be inserted "senior prison officer" - a prison officer with the rank of deputy commander and above (2) After the definition"junior prison officer" there shall be inserted "Service Regulations" - prison regulations and prison commission regulations which shall be issued in accordance with section 80A; "judicial officer" - a prison officer with the rank of warder or higher who the Netziv shall grant, in writing, the authority of a judicial officer and who is not a senior judicial officer; "senior judicial officer" a prison officer with the rank of deputy commander or higher; "judge sitting alone" - a judicial officer or senior judicial officer; .an offence as specified in section 50 ־ "disciplinary offence"

־ Amendment 2. In section 57 of the Ordinance of Section 57 (1) In place of "(hereinafter - "judicial officer")" there shall be inserted "(hereinafter in this Article - "judicial officer") (2) In subsection (3) in place of "another senior prison officer "there shall be inserted "a prison officer with the rank of warden or higher"

Amendment 3. In Section 80(c)(2) of the Ordinance after "improperly" there shall be inserted of Section 80 "or if an investigation shall be conducted against him in connection with the commission of an offence or disciplinary offence".

Incorporation 4. After Section 80 of the Ordinance there shall be inserted the following: of clauses 80A - 80C Publication 80A. (1) The Netziv shall issue with the consent of the Minister of Service Regulations general regulations which shall establish the principals for the organisation of the prison service its management policy and disciplinary procedures to secure its orderly operation (hereinafter - "the Prison Service Regulations") (2) The Netziv shall issue general regulations which shall specify the details in respect of the matters referred to in subsection (1) (hereinafter - "Prison Commission Regulations")

Passed by the Knesset on the 12th Av, 5748 (27 July 1988); the Bill and an Explanatory note were published in Hatza'ot Chok 1927, 5747, p. 230. The Laws of the State of Israel, New Version Number 21, Page 459; 5748 page 45.

288 80B. (1) Service Regulations shall not require publication in Reshumot and shall be published in such manner as the Netziv shall think fit.

Legal effect 80C. (1) For the purpose of this Ordinance Service Regulations of Service shall be considered as Laws. Regulations (2) In the event of any conflict between Prison Service Regulations and Prison Commission Regulations - the Prison Service Regulations shall prevail; in the event of any conflict between Prison Commission Regulations and any other regulationsthe Prison Commission Regulations shall prevail.

5. In section 83 of the Ordinance in place of "senior prison officer"there shall be Amendment inserted "Prison Officer with the rank of warden or higher" to Section 83

6. In place of section 86 of the Ordinance there shall be inserted. Substitution of section 83 Retirement 86. (1) A prison officer shall not resign from the prison service of an officer except and unless 3 months prior notice thereof shall have been given to the Netziv. failing this he shall be considered as being absent from duty without leave. (2) Notwithstanding the provisions of subsection 86(1) the Netziv shall be permitted at the request of a prison officer to allow such officer to resign from the force even if three months shall not have elapsed from the date of service of notice.

7. In Chapter 3 of the Ordinance in place of Article 9 there shall be inserted the Amendment following: of Chapter 3

Article 9 - Disciplinary Offences and Disciplinary Hearings - General Rules

Disciplinary 101.(1) A disciplinary offence means an offence against good Offence and order and discipline as specified in the Appendix. Commencement of Disciplinary (2) The Minister with the approval of the Knesset Committee Hearing for Internal Affairs and the Ecology shall be permitted by Order to add to the Appendix or to derogate therefrom. (3) A prison officer who is charged with a disciplinary offence shall be tried before a disciplinary tribunal or before a judge sitting alone in accordance with the provisions of this Ordinance.

Independence 101 A. In judicial hearings held in accordance with this Ordinance there shall be no authority over the judge other than the Law and nor shall he be subject to the authority of his commanding officer.

289 Open Court 101B. (1) A hearing of a disciplinary court or an appeals court in accordance with this Ordinance (each one being hereinafter called "a court") shall be held in open court except if the Netziv shall decide that it shall be heard in camera in order to prevent a breach of State security. (2) The court shall be permitted at any stage of the hearing, for reasons which it shall stipulate to hold the hearing whether in whole or in part in camera if in its opinion the matter warrants it in order to prevent a breach of State security, for the public good or for prison discipline. (3) Should the Netziv or the Court decide in accordance with the authority provided by subsections (1) or (2) to hold the hearing in camera he or it shall have the authority to allow any person or any manner of persons to be present at the timeof the hearing whether in whole or in part.

Disturbance 101C. The Court shall have authority to order the detention of any of hearing person who shall disturb the hearing of the court or who shall behave in such a manner as shall prejudice the honour of the court.

Proceedings 101D. The Court shall have authority to detain a party to in the absence proceedings who shall disturb the hearings of the Court; if this shall of a party happen, the proceedings of the Court shall be brought to the attention of the detained party in such manner as the Court shall determine.

Contempt of 101E. (A) Someone not being a prison officer who shall Court commit one of the following offences shall be sentenced to three months imprisonment:- (1) if he shall be lawfully summoned to appear before the Court and he does not appear or he appears but he leaves before he is given permission to do so or who does not give sufficient reason for his absence or departure. (2) if he is lawfully cautioned by the Court but does not reply as required by the Law. (3) if he is required by the Court to produce a document in his possession and without lawful justification he withholds its production. (4) whilst a witness in court he does not answqj a question which he is lawfully required to answer or he knowingly answers with an evasive answer without lawful justification.

290 (5) he causes a disturbance or a cessation in the proceedings of the Court. (B) Someone not being a prison officer and who is in contempt of court in accordance with the provisions of this Ordinance in consequence of the use of insulting language or threats - shall be sentenced to six months imprisonment. (C) The authority to hear offences under the provisions of this section shall be vested in the hands of the Magistrates Courts. 10IF. Where a person having been summoned to testify, fails to appear, or having been ordered to produce a document to the Court fails to produce it the Court shall be empowered, if it shall be convinced that the failure to appear or to produce the document by this person is without just cause, to order his attendance before the Court at a time specified in the warrant (hereinafter - "the warrant"). 101G. A warrant shall be executed in accordance with execution of warrants under section 73A of the Courts Law [Consolidated Version] 5744-19842.

102. The provisions of Chapter 4 of the Penal code 5737 -1977 3 shall apply mutatis mutandis to disciplinary offences in accordance with this Ordinance. 103. (1) A prison officer shall not be tried by a disciplinary court offence if three years shall have elapsed from׳for a disciplinary the date the offence was committed; and in respect of a disciplinary hearing before a judge sitting alone if a year has elapsed since the offence was committed. (2) Where an investigation is being conducted against a prison officer, the period mentioned in subsection (1) shall not begin to run until the last day of the investigation.

Prescription 104. A sentence imposed by a disciplinary court shall not be of penalties executed, and if execution shall have been stayed - shall not be continued if three years elapse from the date the judgement has been made absolute or from the date of the stay, whichever shall be later.

2 Sefer Ha-Chukim of 5744, page 198; L.S.I, vol 38, p. 271; 5745 page 138. L.S.I, vol 39, p. 148. 3 Sefer Ha-Chukim of 5737, page 226; L.S.I, Special Volume, The Penal Law, 5746 page 219. L.S.I, vol. 40, p. 230. No double 105. A prison officer shall not be tried in disciplinary proceedings jeopardy in respect of a matter of which he shall have been acquitted or for which he shall have received a conviction in accordance with this Ordinance.

Disciplinary 105 A. The liability of a prison officer in respect of a disciplinary hearing in matter shall not reduce his criminal liability in respect of any act or addition to criminal dereliction of duty, and it shall be permitted to commence proceedings disciplinary proceedings against him notwithstanding that he shall have been convicted or acquitted in respect of any act or dereliction of duty by a Court of Law.

Disciplinary 105B. (1) If a complaint shall be laid against a prison officer proceedings before a judge sitting alone or a charge filed against him in a and criminal proceedings disciplinary court and a charge shall be filed against him in respect of the same act or dereliction of duty in a Court of Law as a criminal offence or if the Attorney General shall announce his intention to file charges then notwithstanding the provisions of section 105A the disciplinary proceedings shall be stayed until determination of the criminal proceedings and this shall be the case if a complaint or a charge shall be filed after a charge has been filed in a Court of Law in respect of a criminal offence as aforesaid.

(2) On completion of'the criminal proceedings or if the Attorney-General shall announce that he has revoked his intention to file a charge the disciplinary proceedings shall continue. (3) Subsection (1) shall not apply if one of the following shall occur: (i) the prison officer against whom a complaint has been filed for hearing by a judge sitting alone or a charge for hearing by a disciplinary court agrees to be tried first in the disciplinary proceedings. (ii) the judge sitting alone or the disciplinary court determine on the application of the Attorney General that the circumstances of the matter compel the disciplinary proceedings to precede the criminal proceedings.

Privileged 105C. Notwithstanding the provisions of section 105A nothing Communication said by the accused in the disciplinary hearings shall be used against him in criminal proceedings.

292 Judgment in 105D. The findings and conclusions of the judgment which shall Criminal be handed down in any criminal proceedings instituted against a Proceedings prison officer shall be considered as proven in the disciplinary proceedings against the same officer.

Disciplinary 105E. In the event that a prison officer shall be included with Jurisdiction In Accordance other professionals who are subject to the provisions of any statute With Another which shall relate to disciplinary proceedings which shall not be in Law accordance with this Ordinance, it shall be permitted to try him in accordance with this Ordinance, even if he shall have already been tried in respect of the same act or dereliction of duty in accordance with that other statute, and it shall also be permitted to try him in accordance with that statute even if he shall have already been tried in accordance with this Ordinance.

Liability In 106. (1) A Disciplinary Court or judge sitting alone who have Damages convicted a prison officer of a criminal offence are authorised to impose upon him, in addition to any other sentence, the payment of damages which shall have been caused directly because of the offence. However there shall not be imposed upon him under the provisions of this section any sum which shall be in excess of his current monthly salary at the time the liability was imposed. (2) The imposition of damages in accordance with this section shall not exempt from liability to damages in accordance with any other Law.

Collection of 107. (1) A prison officer having been obligated by a disciplinary fines and court to pay a fine or damages, the fine or damages shall be damages collected by way of deduction from the sums due to him from his service in the prison service, in such manner as shall be prescribed by Service Regulations on condition that the rate of

rates ׳ deduction shall not exceed in any one month the prescribed in section 8 of the Wage Protection Law 5718-1958 4

(2) Fines and damages which are collected as provided in sub-section (1) shall be paid into the General Funds of the .

Annulment 108. (1) The Netziv shall be permitted on account of special and commuta­ circumstances which shall be recorded, to commute a sentence tion of sentences which shall have been imposed in a disciplinary matter, or to reduce or to impose a lighter sentence, on condition that no

4 Sefer Ha-Chukim of 5718, page 86; L.S.I, vol. 12, p. 100. appeal has been lodged and the time for lodging an appeal has elapsed. .(2) A prison officer having had imposed upon him the payment of damages in accordance with section 106 the Netziv may for special reasons cancel the imposition of damages or reduce the rate thereof.

Dismissal by 109. The Netziv shall be empowered to dismiss a prison officer reason of who shall be tried in disciplinary or criminal proceedings even if he disciplinary or criminal shall be acquitted, if he shall be of the opinion, because of the hearing disciplinary or criminal hearings that the prison officershall not be suitable for continued service in the prison service and on condition that a senior prison officer shall not be dismissed without the approval of the Minister.

Commence• 110. The commencement of the sentence which shall be imposed ment of by a Disciplinary Court shall be the date the verdict is pronounced sentence or such later date as the judge sitting alone or the court shall determine.

Conditional 110A. (1) A custodial sentence having been imposed on the sentence accused in disciplinary proceedings, a judge sitting alone or court shall be entitled to rule in the verdict that the sentence, whether in whole or in part shall be conditional. (2) anyone who shall have a conditional sentence imposed upon him shall not serve such sentence if he shall not commit, within a period as shall be prescribed in the verdict, which shall not be less than one year nor greater that three years (hereinafter - "the conditional period") one of the offences which shall be specified in the verdict and he shall not be convicted in respect of this offence (hereinafter - "the additional offence") during the additional period or , thereafter. (3) The conditional period shall commence from the date of the verdict. (4) The determination of the offences in accordance with sub-section (2) shall be classified as either a type of offence or by detailing specific offences, either by way of description or by way of reference to a legal directive; should a reference to a legal directive subsequently be annulled and be replaced by another directive then the verdict shall be considered as having made reference to that other directive.

294 Cancellation of HOB. (1) The Netziv shall be entitled to determine that any the appoint­ disciplinary court judge shall cease to function in that capacity ment of a disciplinary if he shall be convicted of an offence or if an investigation court judge shall be conducted against him.

(2) The Netziv shall terminate the appointment of a disciplinary court judge who shall cease to be a prison officer, however he shall be permitted to allow him to complete the hearing of a matter which he has commenced. (3) A termination as is mentioned in sub-section (1) in respect of a member of the court who is not a prison officer shall be with the authority of the Minister of Police.

Replacement 1 IOC. (1) A judge in a disciplinary matter having died, or being of a judge prevented from sitting in judgement for any other reason.ihe /vefzj'v shall appoint another judge to sit in his place: the judge sitting alone or a newly composed court, shall be entitled to continue the matter from the point that had previously been reached, if the accused shall not object. (2) Sections 11 OH( 1) and 11OQ shall apply also to someone appointed in accordance with this section.

The general 11OD. In a disciplinary hearing held under the provisions of this rules of Ordinance the general rules of evidence as used in a Court of Law evidence shall not apply shall not apply.

110E. In any procedural matter for which no directive is ׳ Proceedings in the absence of contained in this Ordinance or in the rules which have been Procedural Rule promulgated in accordance with it the Judge shall proceed in such manner as appears to him to be the best in order to obtain a fair trial, and on condition that he shall in such case give reasons for his decision.

Procedure 110F. (1) The Minister with the approval of the Knesset Committee for Internal Affairs and the Environment shall prescribe the procedural rules, including the procedure for the service of documents, in accordance with which the disciplinary proceedings shall be convened and conducted in accordance with this Ordinance. (2) An officer shall not stand trial in a disciplinary hearing except in accordance with rules which shall be promulgated in accordance with this section.

295 Article 9.1: Judge Sitting Alone

Standing trial 110G. (1) The rank of a judge sitting alone shall be at least two before a judge , ranks higher than that of the accused however the Netziv shall sitting alone be entitled to judge the accused even if the rank of the accused is only one rank lower. (2) A judge sitting alone in disciplinary hearings against a prison officer with the rank of commander or higher shall be a senior judicial officer only.

Transfer of 110H. (1) After the reading of the complaint the accused shall be hearing to entitled for reasons which he shall specify in his application to another judge sitting alone request the transfer of the hearing to another judge sitting alone: the judge sitting alone shall be entitled to decide to transfer the hearing to another judge sitting alone; if he shall decide not to transfer the hearing as aforesaid he shall set out his reasons for this in his decision.

(2) Notwithstanding what is mentioned in subsection (2) an accused with the rank of Gondar Mishne or higher who shall stand trial before the Netziv shall be entitled to request the transfer of the case to a court.

Sentencing 1101. A judge sitting alone shall be entitled to impose the Authority of a Judge following sentences whether in whole or in part Sitting Alone (1) If he is a Judicial Officer (a) a reprimand (b) a severe reprimand (c) a fine which shall not exceed five days salary as specified in Service Ordinances (d) confinement to a prison service establishment for a period not exceeding 5 days (2) If he is a Senior Judicial Officer (a) a reprimand (b) a severe reprimand (c) a fine which shall not exceed ten days salary as specified in Service Ordinances (d) confinement to a prison force establishment for not longer than 10 days (e) detention for not longer than 20 days

296 Restrictions 110J. The Netziv shall be permitted to specify in Prison Service on the Regulations restrictions on the authority given to a judge sitting Authority of a Judge alone - and when specified they shall be considered as specified by Sitting Alone this Ordinance. 110K. If a sentence shall be imposed by a judge sitting alone and the accused shall give notice at the time the verdict is pronounced of his intention to appeal against the judgement, then the judge sitting alone shall be entitled to order the postponem- ent of the execution of the sentence until the decision in the appeal.

Appeal Against 110L. (1) A prison officer who shall be convicted by a judge Judgment sitting alone shall be entitled within 15 days from the date he shall be notified of the judgment to submit an appeal, in writing, in a manner prescribed by the Service Ordinances. (2) In an appeal as aforementioned it shall be permissible to appeal also against a liability for damages imposed in accordance with section 106. (3) A Senior Judicial Officer shall be entitled to hear the appeal even if it shall have been submitted after the period mentioned in sub-section (1) if it shall be proved to his satisfaction that there was reasonable justification for the delay.

Authority of 110M. (A) A Senior Judicial Officer presiding over an appeal a Senior shall be entitled to do one of the following: Judicial Officer Presiding Over (1) To accept the appeal and grant the accused an acquital an Appeal (2) To confirm the conviction and reduce the sentence either by shortening it or replacing it with a lighter sentence (3) To dismiss the appeal (B) If the Appeal shall also relate to a liability in damages the Senior Judicial Officer shall also be entitled to cancel the obligation or reduce the amount of the damages.

Article 9.2: Disciplinary Court

Establishment 1 ION. The Netziv shall establish a Disciplinary Court which shall of a Discipli• try prison officers on disciplinary offences and shall appoint the nary Court judges who shall hold office in it.

Disciplinary 1100.(1) The Disciplinary Court Board shall deliberate with Court Board three senior prison officers one of whom at least shall be a member of the Israel Bar Association (hereinafter - "the Advocate").

297 (2) Notwithstanding the provisions of subsection (1) where it shall not be possible to appoint a senior prison officer who is an Advocate the netziv shall appoint as a Judge someone in State service from a list prepared for this purpose by the Minister of Justice with the approval of the Minister. (3) The Disciplinary Court Board which shall try an offence by a prison officer, in accordance with section 19 of the Appendix, as opposed to someone who is not an officer, shall be composed of two senior prison officers, and an additional judge which the Netziv shall appoint from a list of public representatives who are eligible to be appointed as judges of the Magistrates Court, who shall be determined by the Minister with the agreement of the Minister of Justice. (4) The Netziv shall appoint the President of the Court from the judges; in respect of subsections (2) and (3) the President shall be elected from Judges who are Prison Officers.

Rank of HOP. A judge shall not sit in a disciplinary court where his rank Judges is lower than the rank of the accused.

Opposition to 110Q. The accused shall be entitled to apply to the Disciplinary Composition (of the Court) Court with a reasoned application to disqualify a judge who is presiding at his trial; if the court shall accept the application the judge to whom the application related shall withdraw and another shall be appointed in his place; if the application shall be refused - the accused shall be entitled to appeal against the refusal before the Netziv, in the manner specified in Service Regulations.

Penalties 110R. If the accused shall be convicted of an offence, the Court shall be entitled to impose on him the following sentences, whether in whole or in part: (1) a warning (2) a reprimand (3) a severe reprimand (4) a fine which shall not exceed a monthly salary as shall be determined by Service Regulations (5) confinement to a service establishment for a period which shall not exceed 45 days (6) detention for a period not exceeding 45 days (7) reduction in rank

298 110S. (1) A custodial sentence shall' be served in a prison installation as determined by the Netziv. (2) The Netziv shall prescribe the set up of the management security and regime in the place that shall be prescribed for the service of the custodial sentence.

Deferment of 110T. Where the Disciplinary Court has imposed a penalty on the Execution of accused and the accused signifies, at the passing of the sentence, his Sentence intention to appeal against the judgment, the court shall be entitled to order deferment of the execution of the sentence until the decision in the appeal.

Article 93: Appeals Court

Appeal 110U. (1) Those permitted to appeal against any finding or sentence or verdict - include - an accused who has been convicted by a disciplinary court, the Netziv or someone authorised for this. (2) An appeal shall be by way of the filing of a statement of appeal signed by the appellant or his attorney, in the Appeals Court, in manner prescribed by Service Regulations.

Period for 110V. The period for filing an Appeal is 45 days from the date the Filing an verdict is given; if the verdict shall be given when either the Appeal accused or the prosecutor shall not be present, then the period for filing the appeal shall commence from the day upon which he shall be apprised of the verdict, in such manner as is prescribed by Service Regulations.

Extension of 11OW. The Appeals Court shall be entitled, at the request of the Time appellant, to permit the filing of the appeal after the period of time as mentioned in section 110V for filing it has expired.

The Appeals 110X. (1) The Minister shall set up an Appeals Court which shall Court hear appeals on verdicts of the Disciplinary Court and he shall appoint the judges who shall hold office therein. (2) Hearings of the Appeals Court shall be presided over by three judges who are senior prison officers, of whom one of them at least shall be an Advocate; the President of the Court shall be of the rank of Deputy Commander.

Representa• HOY. The Netziv or any one authorised in that behalf shall tive of the appoint a senior prison officer who shall represent him before the Netziv Appeals Court as respondent or appellant, in accordance with the matter.

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 00>0.*ג<10ו40מ3^22 ~~ * משרד המשפטים (התימה מוסדית). Summons 110Z. The Appeals Court shall be summoned by writ of summons executed under the hand of the Netziv; the Writ of Summons shall specify where the Court shall sit and the time of commencement of the hearing and shall be sent to the appellant and the respondent.

Withdrawal 110AA. The appellant shall be entitled to withdraw from his of Appeal appeal at any stage of the appeal proceedings, however a party which has completed his pleadings, shall not be entitled to withdraw from his appeal without the authority of Appeals Court.

Authority of 110AB. The Appeals Court shall be entitled to do one of the the Appeals following: Court (1) to accept the appeal, in whole or in part, to amend the verdict given by the court of prior instance, or to nullify it and give another in its place; (2) to reject the appeal; (3) to alio w in connection with the verdict any other decision which the court of prior instance was authorised to give, with the exception that the Appeals Court shall not impose on the accused a penalty more severe as that imposed on him, unless the appeal has been lodged in respect of the leniency of the sentence. (4) to return the matter to the court of prior instance, with instructions.

Final Verdict 110AC. The verdict of an Appeals Court is final.

ARTICLE 9.4 : FURTHER PROVISIONS

No salary in 110AD. A prison officer who has been convicted for absence respect of days of without leave or who has been placed under arrest or imprisonment, absence or shall not be entitled to be remunerated for any day or part of a day imprisonment of the absence, arrest or imprisonment.

Salary during 110AE. (1) A prison officer on suspension, shall be paid, for the time of Suspension period from the commencement of his suspension until the time he is acquitted or convicted, a proportion of his salary as the Netziv shall see fit, on condition that the aforesaid portion shall not be less than one half of his salary. (2) A prison officer who has been suspended and is not brought to trial or his brought to trial and is acquitted, shall be

300 entitled to be paid his salary for the period of his suspension. (3) If a prison officer shall stand trial on some of the offences by reason of which he had been suspended, or if he shall be acquitted of some of the offences on which he is standing trial, the Netziv shall be entitled, for reasons which he shall record, to direct that there shall be paid to him such salary as he would have been paid had there been no suspension, with a reduction of part of the salary which had been received in accordance with sub-section (1) for the period of suspension, on condition that there is no direction to dismiss him from the prison service; a prison officer who is dismissed from the prison service shall not be entitled to be paid his salary. (4) If a prison officer shall be remunerated from additional employment, during his period of suspension, the salary he shall receive from his additional employment shall be deducted from the salary that shall be paid to him in accordance with subsections (2) and (3).

8. In section 111 of the Ordinance the definition "Judicial Officer" shall be Amendment to section 111 deleted. 9. In section 117 of the Ordinance in subsections (1) and (2) in place of "Judicial Amendment to section 117 Officer" there shall be inserted "Judge sitting alone" and in subsection (2) after "judicial officer" there shall be inserted "or of the Court".

10. After section 131 of the Ordinance the following shall be inserted; Addition of Sections 131A Commission 131A. (1) The Minister or the Netziv shall be entitled to appoint a and 131B of Enquiry Commission of Enquiry to investigate any matter relating to the Prison Service, and it shall be authorised to summon witnesses and to collect evidence; the Commission of Enquiry shall be composed of one or more prison officers, on condition that the rank of at least one of them shall not be lower than the rank of warden. (2) Nothing heard during the investigation of the Commission of Enquiry, whether from a witness or from any other source, nor any report of the Commission of Enquiry, shall be acceptable as evidence in a trial, excluding a disciplinary trial, unless in respect of a prison officer who is sent for trial for false evidence which he gave to the same Commission of Enquiry. (3) If the Commission of Enquiry have perceived that someone is likely to be injured by the investigation or its

301 findings the Chairman shall advise him by how much he is likely to be injured and shall transfer to his possession, in such manner as he shall think fit, the evidential material relating to such injury and shall give him the opportunity to hear his version. (4) The Netziv shall be entitled to delegate his authority in accordance with subsection (1) to another senior prison officer.

Investigation 13IB. A prison officer shall not stand trial before a disciplinary before trial in court only after the setting up of an investigation into the offence by a Disciplinary Court the Commission of Enquiry as mentioned in section 131A and as provided by Prison Service Regulations, or after an investigation by the Police."

Amendment 11. In section 132 of the Ordinance in place of the commencement of the section to section 132 the following shall be inserted: "The Minister is appointed to put this Ordinance into effect and he shall be entitled to institute regulations in the following matters:-"

Repeal of 12. Section 133 of the Ordinance is hereby repealed. section 133

Addition of 13. At the end of the Ordinance the following shall be inserted: the Appendix

APPENDIX (Section 101) DISCIPLINARY OFFENCES 1. Non-compliance with an order being an order of Service Ordinances or any other order duly given, or a refusal to fulfil an order as aforesaid. 2. Negligence in performance of duty. 3. Conduct unbecoming a prison officer or which is likely to damage the image of the prison service. 4. Wrongful use of the authority bestowed by virtue of his position. 5. Absence from duty without justifiable reason. 6. Absence from service with the intention not to return to it; absence from the service for a period of 21 consecutive days without permission, shall be considered, for this purpose, as an intention not to return to the service, unless proved otherwise. 7. Not making reasonable efforts to prevent the commission of an offence including a disciplinary offence or a prison offence which the prison officer knows is about to be committed.

302 8. Unlawful release of a prisoner or allowing the escape of a prisoner. 9. Refusal to supply details of identity or personal number or concealing details as aforesaid. 10. Acting dishonestly to another rank or to someone with other authority. 11. Giving a false declaration, concealment of information which he is bound to supply or the use of other unlawful means to place restraints on the prison service, or in order to obtain a position or rank or in order to evade duty. 12. The possession use or destruction of prison equipment in contravention of Service Regulations and without justifiable reason. 13. The possession or use of a fire-arm, ammunition, explosive substance or other dangerous material, without authority, without the required level of caution or in contravention of Service Ordinances; for this purpose "fire-arm" shall have the meaning ascribed in the Fire-Arms Law 5709-1949s. 14. Divulging or supplying material relating to the Prison Service, to an unauthorised person without duly receiving permission. 15. Applying, without duly receiving permission, to an authority outside of the Prison service in any matter concerning service in the Prison service; for this purpose "authority outside of the Prison Service" - excludes a Court of Law. 16. Insolence or the use of abusive language toward anyone when in the execution of his office or when he is in uniform. 17. Intentionally making a false accusation against a prison officer or against a prisoner. 18. Taking an advantage of his position as a prison officer not being for the purpose of carrying out his duties. 19. (1) The use of force against someone in the course of carrying out his duties in contravention of Service Regulations or any other instruction which shall have been duly given. (2) The placing of someone on trial under the provisions of this section shall be submitted to the decision of the Attorney General or someone authorised for this. 20. The commission of one of the following during proceedings, without justifiable reason (1) Non-appearance or appearing late for proceedings to which he has been duly summoned;

5 Sefer Ha-Chukim of 5709, page 143; L.S.I, vol, 3. p. 61. (2) Leaving a place where proceedings are being conducted without permission; (3) Non production of a document which he is lawfully required to produce; (4) Not responding or giving an evasive or false response; (5) Using insulting or threatening language or causing a disturbance or interruption; (6) The publication of a matter which is being tried in camera, without the permission of the person who is judging the proceedings; For the purpose of this section "proceedings" - shall mean a trial in a court of law, disciplinary hearing or enquiry. 21. The commission of an action which is intended to prevent, to delay or to hinder in any way the submission or transmission of an admission to the Prison Service Ombudsman. 22. The commission of an action which is intended to prevent, to delay or to hinder in any way the submission or transmission of a complaint to the Prison Public Complaints Commissioner, within the meaning of The State Comptroller Law, 5718-19586 [Consolidated Version] (hereinafter - 'the Public Complaints Commissioner"). 23. A refusal to render assistance requested by the Prison Service Ombudsman in order to clarify a grievance or complaint, the supply of false information in the course of the clarification or its obstruction in any other way. 24. A refusal to render assistance which is requested by the Prison Public Complaints Commissioner in order to clarify a complaint, the supply of false information in the course of the clarification or its obstruction in any other way.

Amendment 14. In the Appendix to the Disciplinary Justice (Retrial) Law 5721-19617 in to Disciplinary place of sub-section (5) there shall be inserted the following:- Tribunal Law Column 1 Column 2 "(5) Articles 9.1 and 9.2 of The Minister of Police Chapter 3 of the Prisons Ordinance [New Version] 5732-1972

6 SeferHa-Chukim of 5718, page 92; 5747 page 34; L.S.I, vol. 12, p. 107; vol. 4, p. 33. 7 SeferHa-Ctiukim of 5721, page 56; L.S.I, vol. 15, p. 49.

304 15. (1) The commencement of this Law will be at the expiry of six months Commence-

ment and

from the date of its rpublicatio n v(hereinafter - "the commencement . inception day") (2) The provisions of this Law shall - (i) also apply to disciplinary offences which a prison officer shall have committed before the commencement day and for which he shall not have stood trial before a disciplinary tribunal, on condition that it shall have been permissible for him to have stood trial on the said disciplinary offences before the commencement day; (ii) not apply to proceedings pending on the commencement day.

16. Prison Commission Regulations which are published prior to the Confirmation of validity commencement day, shall be considered as Service Regulations which were and adjust• published in accordance with this Law, and in every place in the Law where "the ment of terms Rules of the Prison Service" or "Prison Commission Regulations" are mentioned they shall be read as if "Prison Regulations with the meaning ascribed by the Prison Ordinance" was mentioned.

17. This Law shall be published in Reshumot within thirty days of its Publication passing.

YITZCHAK SHAMIR CHAIM BAR-LEV Prime Minister Minister of Police CHAIM HERZOG President of State

305 (No. 85) YOUTH (TREATMENT AND SUPERVISION) (AMENDMENT NO. 7) LAW, 5748-1988*

Amendment 1• In section 4 of the Youth (Treatment and Supervision) Law, 5720-19601, of section 24 ü! paragraph (1) after the words "under this Law" shall come the words "or that a minor attempted to commit suicide or commited suicide".

YITZCHAK SHAMIR MOSHE KATZAV Prime Minister Minister of Labor and Welfare CHAIM HERZOG President of State

Passed by the Knesset on the 13th Av, 5748 (27th July, 1988) and published in Sefer Ha-Chukkim No. 1262 of the 13th Av, (27th July, 1988) p.239; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1902, 5748, p.290. 1 Sefer Ha-Chukkim 5720, p. 52;5731, p. 141; L.S.I, vol 14, p. 44; vol.25, p. 137

306 (No. 86) BANK OF ISRAEL (AMENDMENT NO. 16) LAW, 5740-1988*

the words "no more than Amendment ,5714-1954׳ ,In section 20 of the Bank of Israel Law .1 nine" shall be replaced by the words "no more than eleven" and the words "at least of sectl0n 20 five" shall be replaced by the words '•' at least seven".

YITZCHAK SHAMIR Prime Minister and CHAIM HERZOG President of State

' Passed by the Knesset on the 13th Av, 5748 (27th July, 1988) and published in Sefer Ha-Chukkim No. 1262 of the 13th Av, 5748 (27th July,1988) p.239; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1900, 5748, p.277. 1 Sefer Ha-Chukkim 5714 p. 192; 5745 p. 201: L.S.I. Vol 8, p. 163.; vol 39, p. 223

307 (No. 87) LOCAL AUTHORITIES (FINANCING OF ELECTIONS) (TEMPORARY PROVISION) LAW, 5748-1988*

Definitions 1• "the Elections Law" means the Local Authorities (Elections) Law, 5725-1965 I

"the Elections" means the elections to all the councils of the local authorities that are conducted in the year 5749, including repeat elections; "faction" means a faction of a council of the local authority, in which elections are to be held and which was approved as a council as stated in section 25 (a) of the Elections Law; "parent faction" means a faction in the Twelfth Knesset or in a party with a faction in the Twelfth Knesset; "affiliated faction" means a faction complying with either of the following: (1) At least half of those members serving in the council on the determining date were elected in the primaries from the list that was submitted by the parent faction or which was submitted by one of its local representatives, or one of the local institutions, or one of the above approved it, and it is not otherwise identified as stated in section 25 of the Elections Law. (2) Until seven days prior to the determining date it filed a written notice to the Minister of the Interior, indicating that it is a new faction and who its parent faction is; a notice as stated shall have the approval of the faction's representative in the Knesset; "list" means a list of candidates who are not a faction; "affiliated list" means a list filed by the parent faction in the Local Authority in which the parent faction does not have an affiliated faction; "election period" means the period from the determining date until the election day, and with respect to a faction or list participating in the second elections - until the day of the second ballot; "second ballot" means elections according to sections 9(b) and 9A (a) of the Local Authorities (Election and Tenure of the Head Deputy Heads) Law, 5735-1975 2 (hereinafter - the Direct Elections Law);

* Passed by the Knesset on the 13th Av, 5748 (27th July, 1988) and published in SeferHa-Chukkim no. 1262 Of the 13th Av, 5748 (27th July, 1988) p.240; The Bill and an Explanatory note were published in Hatza'ot Chok No. 1844,5747, P.308. 1 SeferHa-Chukkim 5725, p. 248; L.S.I. Vol 19, p. 261. 2 SeferHa-Chukkim 5735, p. 244; L.S.I, vol 29, p. 278.

308 "election expenses" means the special expenses of the faction or the list - including the parent faction, that were incurred for the election campaign during the election period or that were expended prior to the election period, for services and goods that were received during the election period and in connection with the election period, including an undertaking for expenses as stated; "the determining day" means the day of the establishment of the factions as stated in section 25 (a) of the Elections Law.

(a) A calculating unit shall be ten new shekels per qualified voter. Total amount of financing (b) The total amount of financing shall be the sum received by multiplying and unit of the calculating unit by the number of those entitled to vote in all of the local calculation ^ authorities in which elections are conducted.

3. (a) Each faction and each list is entitled to the financing of its election The amount expenses from the Treasury in accordance with the provisions of this Law. of financing in the local (b) The total amount of election financing shall be calculated separately for authorities elections each local authority, and wili be the sum received by multiplying the number of calculating units by the number of qualified voters in the local authority concerned. (c) Where the number of qualified voters does not exceed 2,200, an amount shall be added to amount of collectible financing as follows: (1) Where the number qualified voters does not exceed 750, the additional amount shall be 50% of the financing amount stipulated in subsection (b); (2) Where the number of qualified voters exceeds 750, the additional amount shall be NIS 7,500. (d) For purposes of sections 2 and 3 the number of those qualified voters in a local authority is the number of voters included in the voters' register and in the supplementary list prepared under sections 11 -16 of the Elections Law.

4. (a) The amount of financing that each faction or each list in any local Financing of factions and authority is entitled to receive is the amount of financing under sections 3(b) and lists (c), divided by the number of council members that were elected in that authority and multiplied by the number of representatives of the faction or the list that have been elected. (b) Where a faction or list has obtained at least one seat in the elections - (1) An amount equalling 85% of the amount owing to it under subsection (a) shall be paid immediately after the publication of the results of the elections; (2) An amount equalling the remaining 15% shall be paid to the faction or list immediately after the State Comptroller has submitted a favorable report under section 18(c).

309 (c) Notwithstanding the provisions of subsection (b), where the State Comptroller determines that the election expenses of the faction, with the exception of a parent faction, or a list, having won at least one seat, were lower than the amounts accruing to it under this Law, the following provisions shall apply: (1) Where the election expenses were lower than the sums that were paid under subsection (b) (1), the Treasury shall reimburse the difference between its expenses and the amount paid; (2) Where the election expenses exceeded the amount that was paid under subsection (b)(1), a sum shall be paid for the balance of the election expenses, immediately after the State Comptroller has filed a favorable report under section 18(c).

Financing of 5. (a) Where second elections have been determined under section 9(b) of the second Direct Elections Law, each one of the factions or lists participating in these elections elections shall be paid an additional sum of the money equalling the amount accruing to one elected council member. (b) Where second elections have been determined under section 9 A(a) of the Direct Elections Law, each faction or list participating in these elections shall be paid an additional amount equal to one half of the amount accruing to one elected council member. (c) Immediately after the publication of the second election results, the faction or list shall be paid the amount equalling 85% of the amount accruing under subsections (a) or (b). (d) The amount equalling the remaining 15% shall be paid immediately after the State Comptroller has submitted a favorable report under section 18 (c).

Advance 6. (a) A faction shall be entitled to receive from the Treasury no later than the payments 20th Shevat, 5749 (26th January, 1989), an advance payment for the financing of the elections of the sum of 60% of the sum of financing that would have accrued to it under section 4(a) had it received the number of seats equal to trie number of its members in the previous council on the determining day. j (b) A list is entitled to receive an advance payment as if it was a faction with one seat in the local authority; (c) A parent faction is entitled to receive an advance payment from the Treasury, which shall be one of the following: (1) An advance payment as stated in subsections (a) and (b); (2) An amount equalling 60% of the amount the relationship of which to the total amount stipulated in section 2 (b) is the same as the relationship between the number of members in the parent faction as publicized in the notice regarding the election results to the Twelfth Knesset to the total number of members of the Knesset; the faction may

310 also initially choose the first option and thereafter choose another option, whichever the higher.

7. (a) A precondition for the payment of amounts under sections 4 - 6 is that Conditions within seven days after the determining day the faction has submitted to the of payment Minister of the Interior: (1) A notice regarding the number of its members as of the determining day, signed by all of its members, also indicating therein the names of the representative of the faction and his substitute under section 25(a) of the Election Law; a copy of this notice shall be sent to the head of the local authority; (2) A notice of the names of no less than two and no more than eight of the representatives authorized to act in the name of the faction for the purposes of this Law (hereinafter - the representatives); the notice shall be accompanied with the representative's consent; at least one of the representatives shall be a member of the faction, and at least one of them shall be declared by the faction and himself to be familiar with the finances of the faction; (3) The name and the address of the accountant appointed under section 13 and the written consent of the accountant to serve in that capacity. (4) An affidavit signed by all of the members of the faction, to the effect that the faction has done everything necessary to ensure the appropriate conduct of the account of its income and expenses during the election period in accordance with the directives of the State Director. (5) The number of accounts in the bank or banks provided that these do not exceed three accounts. (b) A faction is entitled at all times to replace its representatives or to add to them, provided that notice to that effect was given to the Minister of the Interior, and the provisions of subsection (a)(2) were complied with; a faction may also, at all times replace its accounts in the bank or add to them, provided that notice to that effect was given to the Minister of the Interior. (c) For purposes of this Law, the Minister of the Interior shall determine, in accordance with the data in his possession, the number of members of each faction, whether the faction is a parent faction or an affiliated faction, and who is the parent faction; for this purpose changes occurring after the determining day shall not be taken into consideration; (d) Notwithstanding the provisions of subsection (c), a faction shall be considered to be an affiliated faction or an affiliated faction of a faction if until seven days after the determining day the faction or the affiliated faction gave notice to that effect to the Minister of the Interior: (e) Where the faction gave notice during the period as stated in subsection (d), that it is an affiliated faction or a certain parent faction, and that the parent faction has another affiliated faction in the same local authority, the parent faction may give notice to the Minister of the Interior within the said period that the two factions are to be considered as one affiliated faction for the purposes of this Law (hereinafter - a united affiliated faction); a parent faction shall fulfil all of the provisions stipulated in section 22 with respect to the united affiliated faction.

Conditions for 8. (a) A precondition for the payment of the amounts to the list under section 4, payment to list is that no later than seven days after the determining day the Minister of the Interior has received a notice under section 7(a)(2)(3)(4)(5). (b) The representative of the list and his substitute shall be candidates in the same list. (c) The provisions of section 7(b)and (c) shall apply to the list mutatis mutandis.

Bank 9. (a) An advance payment shall be paid to a faction or to a list if, no later than the tenth day after the determining day, they submitted to the Minister of the Interior a bank guarantee, valid until the 27th Sivan 5749 (30th June 1989), the bank signed thereupon having undertaken to pay the Treasury the amount of the guarantee in whole or in part, at the request of the Minister of the Interior; the amount of the guarantee shall be equal to the amount of the advance payment with an additional 10%. (b) The Minister of the Interior may accept a bank guarantee even after the date stated in subsection (a); should the Minister receive a bank guarantee submitted late as stated, he shall pay the advance payment as stated under subsection (a) after the same period of delay at which the guarantee was submitted. Repayment 10. (a) The amount of the advance payment received by the faction or the of advance payment group shall be deducted from the payment accruing to it under section 4(b)(1), and if the amount is lower than the amount of the advance payment the Minister of the Interior shall collect the deficiency from the guarantor bank and he shall also do so if the faction or the list has not obtained one seat. (b) Where the faction or the list has not made the formally correct and timely submission of its candidates, the Minister of the Interior shall collect the amount of the advance payment from the guarantor bank with the addition of 10%, immediately after the last date for the submission of the list. (c) Where a list submitted by a group of voters failed to receive 5% of the votes required to obtain one seat in the Council, the Minister of the Interior shall

312 collect the amount of the advance payment with the addition of ten percent from the guarantor bank.

11. (a) A faction shall not incur election expenses exceeding 300% of the Limitation amount of the advance payment accruing to it. of expenses (b) A faction which had less than three members on the outgoing council may incur election expenses as if it had three members. (c) A list shall not incurelection expenses exceeding 300% of the amount of the advance payment accruing to it had it been an affiliated faction with three members in the outgoing council. (d) A faction or a list participating in a second ballot may, in the second ballot incur expenses equalling the amount accruing to five members of the council that were elected.

12. A parent faction, or a faction or a list shall not receive during the election Limitation period, directly or indirectly, any contribution from a body corporate in Israel. of income

13. (a) Every faction and every list shall appoint an accountant to audit its Appointment accounts and to give an opinion under section 18 (b). of accountant (b) An accountant, of whose appointment notice was given in accordance with section 7(a)(3) and who consented to serve in that capacity, shall continue to serve for as long as no other has been appointed in his stead. (c) Where the auditor is unable to carry out his functions, the faction or list shall appoint another accountant in his stead within seven days of becoming aware of the fact. (d) Where the faction or list has not appointed an accountant, the State Comptroller shall appoint an accountant for that purposes and at his own expense.

14. (a) Notwithstanding the provisions of section 13, in a local authority in Accountants which the numbers of qualified voters therein does not exceed 3,000, the State in small local authorities Comptroller shall appoint one accountant who shall audit the accounts of all the factions and lists in that authority, who are not affiliated factions or affiliated lists and shall submit a separate opinion under section 18(b) with regard to each one of them. (b) The salary of the accountant under this section shall be paid from the Treasury. (c) An accountant appointed under this section shall continue to serve in that capacity for as long as no other has been appointed in his stead. (d) For purposes of this section "accountant" shall include an employee from the State Comptroller's office and an employee retired therefrom.

313 Powers of 15. (a) An accountant appointed under sections 13 or 14 may at all times, accountant require from either the faction or list for whom he was appointed to audit, to furnish him with information, documents, explanations and all other materials required by him for the purposes of the audit of the election accounts. (b) Whosoever fails to comply with the requirement of subsection (a) shall be liable for imprisonment for one year.

Opinion 16. A parent faction or the accountant of the faction or of a list that is not an affiliated faction or affiliated list, may at all times, request of the State Comptroller an opinion as to whether a certain expense or type of expenses constitute election expenses; the Comptroller will respond to the question within seven days, and may publicize his reply in such manner as he may determine.

Conduct of 17. (a) From the determining day, the faction or the list shall hold the accounts moneys earmarked for its expenses in the bank accounts of which notice has been given under section 7(a)(5) and (b). (b) From the sixteenth day after the determining day, the faction or the list shall conduct a set of accounts in accordance with the directives of the State Comptroller, and shall register therein all of those directives, and all of its income and expenses from the determining day, as well as the expenses prior to the determining day for services and goods received during the election period, and in connection with the election campaign and undertakings due to election expenses. (c) The set of accounts and the accounts of the bank as stated shall be subject to inspection by the State Comptroller, and for this purpose, the State Comptroller shall have all of the powers conferred on him with regard to an inspected body, under the State Comptroller Law [Consolidated Version], 5718 - 19583. (d) The State Comptroller may at all times request of the representatives of a faction or a list, a written affidavit as to the completeness or veracity of the accounts or regarding the type or nature of some particular income or expense; an affidavit as stated may be submitted according to the knowledge of the declarant or to the best of their knowledge and the Comptroller may, according to his own discretion, accept such an affidavit as evidence.

State Compt• 18. (a) Not later than three months after the elections, the representatives of the roller's reports faction or a list shall submit to the State Comptroller its accounts for the election period, as well as the financial report for that period. (b) The accounts and the financial report shall be submitted to the State Comptroller together with an opinion of an accountant appointed under sections 13

3 SeferHa-Chukkim 5718, p. 92; L.S.I, vol 12, p. 107.

314 and 14 regarding the regularity and veracity and regarding the set of accounts having been kept in compliance with the directives of the State Comptroller. (c) No later than six months after the elections, the State Comptroller shall lay on the Knesset table a report regarding the accounts as stated in subsection (a), having regard to the accountant's opinion stated in subsection (b) and in reliance upon such supplementary examinations and clarifications that he may have seen fit to carry out and which shall indicate - (1) whether the faction or the list has kept a set of accounts in accordance with his directives; (2) whether the election expenses and income of the faction or the list during the election period were within the limits indicated in sections 11 and 12; a copy of the report shall be submitted to the Minister of the Interior. (d) Where the report was not favorable, the Minister of the Interior shall direct that the 15% balance mentioned in section 14(b)9(2) or 5 (d) not be paid.

19. (a) Notices and declarations of a faction under this Law shall be submitted Notices and by the representative of the faction or his substitute under section 7(a)(1). declarations (b) Notices and declarations of a list under this Law shall be submitted by the representative of the list of his substitute designated under section 8(b).

20. The amounts due or having been paid to a faction or a list under this Law are Bar to charge and not subject to charge or attachment until the expiration of seven months from the attachment election day.

21. The provisions of this Law regarding the keeping of accounts,, auditing of Application accounts, inspection of the State Comptroller, and the limitation of the expenses and income, shall also apply to a faction or a list which is not entitled to financing either because it has failed to comply with the provisions of sections 7 and 8 in due time or because it has waived financing; for the purposes of this section, the limitation of the expenses of a faction or list as stated shall be calculated in accordance with the advance payment to which it would have been entitled to in accordance with section 6 had it complied with the provisions of sections 7 and 8 and not waived financing.

22. (a) The provisions of sections 7 through 11 and 13 through 18 shall not Application to apply to an affiliated faction or an affiliated list; the provisions of this Law parent faction pertaining to a faction and its obligations shall apply to a parent faction subject to the provisions of this section mutatis mutandis. (b) The parent faction shall be entitled to the amounts due to an affiliated faction or an affiliated list under sections 4,5 and 6; the parent faction shall transfer the greater part of the moneys accruing to an affiliated faction or a specific affiliated

315 list under sections 4 and 5, to the same affiliated faction or affiliated list; a parent faction may deduct from the moneys accruing to an affiliated faction or affiliated list, those expenses incurred by the parent faction at the request of the affiliated faction or affiliated list. (c) A precondition for a payment to a parent faction is that at the time prescribed in section 7 it has complied with the obligations of a faction specified therein, with the following modifications: (1) At least one of the representatives is a Member of the Knesset and at least one of them has been declared by the faction and by himself to be familiar with the finances of the parent faction; (2) It shall give notice of the manner of payment of the advance payment under section 6(c)(1) or (2); (3) Instead of notice under section 7(a)(1), the parent faction gives notice regarding its other affiliated factions in the local authority, the numbers and names of their members, as well as of those local authorities in which it has no affiliated faction and has decided to submit a candidates list therein. (d) A Notices on behalf of parent factions shall be submitted by its attorney under section 25 of the Knesset Elections Law [Consolidated Version], 5729-1969 or his substitute. (e) A parent faction requesting an advance payment shall submit to the Minister of the Interior a bank guarantee for the amount by which the requested advance payment exceeds the amount of financing accruing to it, or to its component parties under sections 2 (a)(2) and 12 of the Political Parties (Financing) Law, 5733-19735, for the month of December 1988 multiplied by 12. (f) The Minister of the Interior may obtain from the Chairman of the Knesset a confirmation of the data relating to the parent faction required for the purpose of implementing this Law. (g) (1) Where the amount of the advance payment exceeds the payment owing under section 4, the Chairman of the Knesset shall, at the request of the Minister of the Interior, deduct from those payments accruing to the parent faction or to its component parties under the Political Parties (Financing) Law, 5733-1973, the deficit, and shall transfer the entire amount deducted to the Treasury; where the Minister of the Interior is satisfied that there is no prospect of covering the deficit by way of these deductions in the course of one year, he may collect the balance from the guarantor bank, in accordance with the bank guarantee submitted to him by the parent faction.

4 SeferHa-Chukkim 5729, p. 103; L.S.I. Vol 23, p. 110. 5 SeferHa-Chukkim 5733, p. 52; L.S.I, vol 27, p. 48. (2) Where an affiliated list has obtained over 50% of the index referred to in section 67(3) of the Elections Law, the amount of the advance payment received by the parent faction shall not be deducted from the payment accruing for that list. (3) Where the State Comptroller's report on a parent faction is unfavorable, the Chairman of the Knesset shall, at the request of the Minister of the Interior, deduct two percent from each of the seven payments due to the parent faction or to its component parties under the Political Parties (Financing) Law, 5733-1973, and one percent from any additional payment; where the deductible sum as aforesaid exceeds the said payments, deductions shall be paid from additional payments until the deducting process is complete; the amounts deducted shall be transferred to the Treasury.

(h) (1) The Election expenses of a parent faction and of all of the affiliated shall ־ factions and lists - with the exception of second ballot expenses not exceed 300% of the amount of all of the advance payments ,received by the parent faction. (2) The second ballot expenses of the parent faction and its affiliated factions shall not exceed the amount due in respect of five elected council members in each of the local authorities in which affiliated factions or affiliated lists of the parent faction participate in a second ballot. (i) The election expenses and income of the affiliated factions and affiliated lists, shall for the purposes of this Law, be regarded as part of the expenses and income of the parent faction and shall be entered together with the income and expenses of the parent faction itself, in the set of accounts conducted by the parent faction in accordance with the directives of the State Comptroller. (j) The duty of appointing an accountant shall fall on the parent faction, and in his opinion he shall especially refer to whether or not the expenses and income of the parent faction were appropriately presented in the set of accounts of the parent faction.

23. The Minister of the Interior shall submit en bloc, no later than 25 days after Submission the determining day, copies of the notices received from the factions, and no later of notices than by the 30th Shevat 5749 (5th February, 1989) copies of the notices received from the lists in accordance with section 7(a) or 22 (c) as well as a detailed list of the amounts of advance payments that were paid to the factions in accordance with sections 6 or 22 (b). 24. (a) The State Comptroller shall determine directives for the factions and Directives and rules of lists regarding the manner of the conducting their sets of accounts. the State Comptroller

317 (b) The State Comptroller may determine guidelines for accountants appointed under section 13 or 14, as to the manner and procedures of auditing the accounts of the factions and groups. (c) The State Comptroller may prescribe rules as to - (1) modes of appointing and cancelling the appointment of the accountant of a faction or a list under section 13 (d) or 14 and the conditions and qualifications for an appointment as aforesaid. (2) The salary of an accountant appointed under sections 13(d) or 14.

Implemen• 25. (a) The Minister of the Interior is charged with the implementation of this tation Law and may - (1) issue directives and prescribe forms for the submission of notices and declarations from the factions, lists and their representatives; (2) delegate his powers to the National Supervisor of Elections, an election officer, or any other person.

Election day - 26. The day of the elections for the local authorities on the 23rd Adar 5749 a public (28th February, 1989) shall be a public holiday, but transport services and other holiday public services shall function normally.

Right to 27. A worker who worked for a particular employer for at least fourteen wages on election day consecutive days immediately preceding the election day, shall be paid by that employer the wage he would have earned with him on the election day, but for the work stoppage.

!Designation 28. The Minister of the Interior shall designate the kinds of services to be of public services regarded as public services for the purposes of section 26 and the hours of their operation and shall publish a notice thereof in such manner as he may see fit.

Commence• 29. This Law shall come into force on the date of its adoption by the ment . Knesset.

Publication 30. This Law shall be published in Reshumot within thirty days of its adoption by the Knesset.

YITZCHAK SHAMIR YITZCHAK SHAMIR Prime Minister Prime Minister and CHAIM HERZOG Minister of the Interior President of State

318 (No. 88)

KNESSET ELECTIONS (AMENDMENT NO. 18) LAW,5748-1988*

1. In section 32 of the Knesset Elections [Consolidated Version] Law, Amendment hereinafter the Elections Law) subsection (b) shall be replaced as of section 32) 5729-1969׳ follows: "(b) The provisions of section 31 and subsection (a) shall not apply when notices under section 55B are to be sent.

6. Section 55 of the Elections Law shall be replaced as follows: Replacement of section 55 Submission 55. Not later than the 135th day after the determining day, the to Central Minister of the Interior shall submit to each of the members of the Committee Members Central Committee who so requested no later than 89 days after the determining day, one of the following: A copy of the voters registered as stated in section 54 or a list of all of the changes that have occurred in the voters register as a result of applications, objections or appeals under this Law.

Section 55A of the Election Law shall be followed by: Addition of sections 55B and55C

55B. Not later than 21 days prior to the election day there shall be sent to any Notice prior person whose name is mentioned in the voters register, a notice stating the specific to elections location of the polling station at which his name is registered as being entitled to vote there.

55C. Thé provisions of section 55B shall also apply with respect to every Elections to local authority, in a year in which elections are being held therein, under sections 4 the Local Authority or 5 of the Local Authorities (Elections) Law, 5725-19652, when they are not being held concurrently with the Knesset Elections; provided that notices as aforesaid in section 55B shall not be sent to voters who are residents in the area of the localities of the regional committee and in those localities there will not be a presentation of lists under section 34."

4. In section 57 of the Elections Law - Amendment of section 57 (1) Subsection (b) shall be replaced by: "(b) The list shall specify the first name and surname of each candidate, his identity number in the Population Registry and address.

Passed by the Knesset on the 13th Av, 5748 (27th July, 1988) and published in Sefer Ha-Chukkim No. 1262 of the 13th Av, 5748 (27th July, 1988) p.247; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1844, 5747, p.308. 1 Sefer Ha-Chukim of 5729, p. 10; L.S.I, vol 24, p. 3; 5746 p. 236. L.S.I, vol 40, p. 226. 2 Sefer Ha-Chukim of 5725, p. 248; L.S.I, vol. 19, p. 261; 5746, p. 180, L.S.I, vol. 40, p. 189.

319 (2) In subsection (d) the concluding section beginning with the words "the deponent" shall be deleted; (3) In subsection (g) the figure "2,500" shall be replaced by the figure "3,500". Addition of 5. Section 70 of the Elections Law shall be followed by: section 70A. Special 70A. (a) Where the Chairman of the Central Committee and his deputies Powers consider, that immediately prior to the election day, or on the election day, that in a certain polling station area special circumstances have arisen that in their judgement prevent or are liable to prevent the proper process of voting, they may instruct that the opening of the polling station be postponed, discontinued and renewed, as well as instruct regarding additional time for voting, provided that no voting will be permitted after the passage of 24 hours from the time specified in section 72 for the closing of the polling stations.

(b) In provisions under subsection (a) arrangements shall be determined to ensure the holding of elections in that polling station area, including the site of the polling station, the composition of the Polling Committee and any other matter dictated by the main provision. (c) The chairman of the Central Committee and his deputies shall give notice of the provisions under this section, to the voters and to the chairmen of the committees concerned, in the manner and means as they deem fit; provisions as stated do not require publication in Reshumot. Amendment 6. (a) In section 74 of the Elections Law, subsections (b) and (c) shall be of section 74 replaced as follows: (b) Only an identity certificate issued under the population Registry Law shall serve as a means of identification. (c) When a person has voted, the Polling Committee shall impress on his identity certificate, a stamp attesting that he has voted in the Knesset Elections and shall delete his name from the voters's list. Amendment 7. In section 89 of the Elections Law, in the definition of "soldiers", the of section 89 word "Reserve duty" shall be replaced by the words "Active reserve service" and in the concluding section shall come "as well as those considered as belonging to the Police Authority and the Prison Authority. Amendment 8. In section 90 of the Elections Law - of section 90 (1) Subsection (c) shall be replaced by: "(c) The voting at the voting stations for soldiers shall be at the dates determined in the regulations or in accordance thereto and may take place during the 72 hours that terminate at the latest date for termination of voting as stated in section 72.

320 (2) In subsection (e) the words "the Central Committee" shall be replaced by the words "the Chairman of the Central Committee together with his deputies".

In section 91 of the Elections Law - Amendment of section 91 (1) Subsection (a) shall conclude with the words "or his policeman's of the certificate or his gaol officer's certificate. Elections Law (2) Subsection (c) shall be followed by - "(d) Notwithstanding the provisions of subsections (a) and (b), the Minister of the Interior may, in consultation with the Minister of Defence and with the consent of Chairman of the Central Committee and his deputies, give instructions regarding the identification mode of the soldiers located in the areas determined for this purpose, with consultation and consent as stated, and regarding the sign indicating that the soldier has voted for the Knesset; the determination of areas and the aforesaid provisions shall be brought to the knowledge of those concerned in such manner as determined by the Minister of the Interior, with consultation and consent as stated; the said provisions do not require publication in Reshumot.

10. In section 95 of the Elections Law, section (e) shall be replaced as Amendment follows: of section 14 "(e) A policeman who was issued a voting certificate may vote at any polling station, provided that - (1) he identified himself with an identity card and a policeman's certificate; (2) he appears in policeman's uniform, except where he has submitted to the Chairman of the Polling Committee an authorization from the Israel Police permitting him to vote without policeman's uniform; having voted as stated, he shall submit to the Chairman of the Polling Committee his policeman's voting card; the Chairman of the Polling Committee shall sign the card and the authorization referred to in paragraph (2), if there be the same, and shall append them to the protocol of the Polling Committee, and the Committee shall imprint upon the identity card a stamp the identity card attesting to his having voted in the Knesset Elections. (f) A policeman, having been issued a policeman's voting card, and subsequently having ceased being a policeman, may vote in any polling station, provided that he identified himself with an identity card, and submitted to the Chairman of the polling station an authorization from the Israeli Police certifying that he is no longer a policeman; the Chairman of the Polling Committee shall sign

321 the card and append it to the protocol of the Polling Committee, and the Committee shall imprint upon the identity card a stamp certifying that he has voted in the Knesset Elections. Addition of 11. Section 95 of the Elections Law shall be followed by: section 95A Voting of 95 A. The Minister of the Interior, in consultation with the Minister of Defence specific and with the agreement of the Chairman of the Central Committee and his deputies, workers may make provisions, whether by way of regulations or any other manner, for all matters pertaining to the voting procedures for persons located in areas specified for this purpose by the Minister of Interior, after consultation and with consent as stated, being located in the territories occupied by the Israeli Defence Force, such persons being employees of the Israeli Defence Force or other employees employed in the same areas; the provisions as stated shall be brought to the knowledge of those concerned in such manner as determined appropriate by the Minister after consultation and with consent as stated; the said provisions shall not require publication in Reshumot.

Amendment 12. In section 99 of the Elections Law, the words "on the eigth day" shall be of section 99 replaced by the words "on the twelfth day".

Amendment 13. In section 107 of the Elections Law, subsection (b) shall be replaced by: of section 107 "(b) Those responsible shall stamp the identity card of persons who have voted with a stamp attesting that the person has voted in the Knesset elections.

Amendment 14. In section 114 of the Elections Law, the words "the fifth day" shall be of section 114 replaced by "the second day".

Amendment 15. In section 145 of the Elections Law, subsection (e) shall be followed by of section 145 the following: "(f) Powers conferred under this section to the Central Committee shall, for the purposes of Chapter Nine, be given to the Chairman of the Committee together with his deputies.

Amendment 16. In section 146 (b) of the Elections Law, the number "90" shall be deleted. of section 146 Amendment 17. In the Local Authorities (Elections) Law, 5725-1965 - of the Local Authorities (1) In section 11 (a)(1), the words "Knesset Elections [Consolidated (Elections) Version] Law, 5729-1969 shall be followed by the words "(hereinafter - Law the Knesset Elections Law)"; (2) Section 16 shall be replaced as follows:

Presentation 18. (a) For each year the Minister shall present the documents of all of the of documents and submis• Local Authorities at the same time.place and manner in which the voters's lists for sion of copies the Knesset are presented under section 33 of the Knesset Elections Law, and a notice under section 35 of that Law shall also include details relating to the

322 presentation of the appendices; in a local authority in which there are no appendices, an appropriate notice shall be presented at the time and place as stated. (b) In a year during which there are elections to the Committee as stated in section 4 or 5 - (1) The Minister shall send a notice to all persons whose names are included in the appendix relating to the inclusion of that local authority in the appendix. (2) The appendices relating to the polling station areas located within the boundaries of the local authority, shall he presented in the same local authority ,together with the lists of voters as stated in section 34 of the Knesset Elections Law. (c) No later than the 46th day after the determining date, the Minister shall submit to the local authority which so requested, a copy of the appendices of that local authority. (3) In section 23E, the words "the Minister shall submit to the Council" shall be followed by the words "at its request".

19. Paragraphs (2) and (4) of section 6 of the Local Authorities (Elections) Application

3 of the Tempo• (Amendment No. 4) Law, 5729-1967 and the Local Authorities (Elections) rary Provision [Temporary Provisions) Law, 5730-19694 shall apply to all of the Local to the Elections for the Local Authorities. Authorities 20. This Law shall be published in Reshumot within thirty days of its passage in Publication the Knesset.

21. This Law shall come into force on the day of its passage in the Knesset. Commence• ment

YITZCHAK SHAMIR YITZCHAK SHAMIR Prime Minister Prime Minister and CHAIM HERZOG Minister of the Interior President of State

SeferHa-Chukkim 5729, p. 197; L.S.I. Vol 23, p. 213. SeferHa-Chukkim 5730, p. 3; L.S.I. Vol 24, p. 5.

323 (No. 89) LOCAL AUTHORITIES (ELECTIONS)(TEMPORARY PROVISION) (NO.2) LAW, 5748-1988*

Prohibited 1. In this Law- List "a prohibited list" means a list of candidates prohibited from participating in the Knesset Elections under section 7A of the Basic Law - The Knesset1; "an affiliated list" means a list of candidates affiliated with a prohibited list either directly or indirectly, overtly or covertly, having consideration for all or some of the following characteristics: its name or sign, its aims or actions, the identities of its founders or members.

Prohibition 2. An affiliated list shall not participate in the elections to all of the Local of participa• tion of a Authorities that are to be held during Adar Alef 5749 (February 1989). list of candidates:

Determination 3. (a) The Chairman of the Central Elections Committee may, after regarding affiliated list consultation with his deputies, determine that a list of candidates submitted in the Elections for the local authority, is an affiliated list. (b) A determination under subsection (a) shall be done in accordance with an application of the Elections Committee of the local committee concerned, the submission of the same having been decided upon by a majority of its members, or by the Attorney General; the petition shall be submitted no later than the 25th day prior to the elections. (c) No decision on a petition shall be given unless the representative of the list has been given a fair opportunity of stating his claims. (d) A decision on a petition under this section shall not be given later than the nineteenth day before the elections day. (e) No court shall entertain an application for a remedy in connection with a decision given under this section relating to the proceedings concerning a petition thereunder. (f) The representative of the list declared to be an affiliated list, and the Attorney General, may appeal the decision of the Chairman of the Knesset Elections Committee to the Supreme Court, under this section, provided that leave therefore has been granted by the President of the Supreme Court; the appeal shall be submitted no later than three days after the issuing of the decision as stated.

* Translator's note: Reference Missing in Original. 1 Sefer Ha-Chukkim 5718, p. 69; L.S.I. Vol 12, p. 85.

324 Where a final decision has been given that a list of candidates is an affiliated Notice of the Elections list, a notice to that effect shall be given by the elections clerk under section 48 of Clerk the Local Authorities (Elections) Law, 5725-19652.

5. The Minister of Justice may, after consultation with the Chairman of the Regulations Knesset Elections Central Committee and the Constitution, Law and Justice and procedure Committee of the Knesset, make procedural regulations for a petition or an appeal under this Law.

The Minister of the Interior is charged with the implementation of this Law, Implementa• tion and and may, with the approval of the Constitution, Law and Justice Committee of the regulations Knesset, make regulations in all matters pertaining to its implementation.

YITZCHAK SHAMIR YITZCHAK SHAMIR Prime Minister Prime Minister and CHAIM HERZOG Minister of the Interior President of State

i

2 Sefer Ha-Chukkim 5725, p. 248; L.S.I, vol 19 p. 261.

325 (No. 90) DEVELOPMENT TOWNS AND DEVELOPMENT ZONES (AMENDMENT) LAW, 5748-1988*

Amendment 1. In section 6 of the Development Towns and Development Zones Law, of section 6. 5748-19881 (hereinafter referred to as "the principal Law"), the words "full residential purposes" shall be replaced by the words "as his residence".

Amendment 2. In section 8 of the principal Law, the words "An employer in a development of section 8. town" shall be replaced by the words "the employer" and the words "in a development town" shall be inserted after the word "work".

Amendment 3. In section 10 of the principal Law, the word "only" shall be inserted before the of section 10. word "permanent" and the closing passage, beginning with the words "Provided that" shall be replaced by the words "Provided that in a 'A' development town" the amount shall be greater and the conditions more favorable than those granted by the government for the acquisition of building elsewhere and that the amount of the loan shall not exceed 95 percent of the price of the dwelling acquired.

Repeal of 4. Section 11 of the principal Law is hereby repealed. section 11.

YITZHAK SHAMIR GAD YAAKOBI Prime Minister Econimics and Planning Minister CHAIM HERZOG President of State

MOSHE NiSSIM Minister of Finance

Passed by the Knesset on 16 Elul 5748 (29 August 1988) and published in Sefer Ha-Chukkim No. 1263 of 29 Elul 5748 (7 September 1988), p. 256; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1900 of 5748, p. 276. 1 Sefer Ha-Chukkim of 5748, 1-98, supra, p.

326 INDEX OF LAWS IN THE ORDER OF THE DATES OF THEIR ADOPTION BY THE KNESSET

Title Date of Adoption

Electricity Supply (Special Provisions)Law, 5748-1987 11th Cheshvan,5747 (26th October,1987) Land Law (Amendment No. 10), 5748-1987 19th Cheshvan, 5748 . (11th November, 1987) Discharged Soldiers (Return to Work) (Amendment No.8) 25th Cheshvan, 5748 Law,5748-1987 (17th November, 1987) 29th Kislev Nationality (Amendment No. 5) Law, 5748-1987 9th November, 1887 1st Tevet, 5748 Estate Duty (Repeal) (Amendment) Law, 5748-1987 (22nd December, 1987) 8th Tevet, Planning and Building (Amendment No.25) Law, 5748-1987 (29th December, 1987) 8th Tevet, 5748 Municipalities Ordinance (Amendment) (No. 32) Law, 5748- 1987 (29th December, 1987) Emergency Regulations (Judea and Samaria and Gaza Zone - 8th Tevet, 5748 Criminal Jurisdiction and Legal Assistance (Amendment and (29th December, 1987) Extension of Validity) Law, 5748-1987 Galilee Law, 5748 - 1987 14th Tevet, 5748 (27th January, 1988) Currency Control (Amendment No. 2) Law, 5748-1988 14th Tevet, 5748 (27th January, 1988) Benefits for Soldiers and Families (Injury not in 8th Shevat, 5748 the Course of Duty) Law, 5748-1988. (27th January, 1988) Banking (Licensing)(Amendment No.5) Law, 5748-1988 13th Shevat, 5748 (1st February, 1988) Income Tax Ordinance Amendment (No. 76) 22nd Shevat, 5748 Law, 5748-1988 (10th February, 1988) Basic Law: The State Comptroller 27th Shevat, 5748 (15th February, 1988) State Comptroller (Transitional Provisions) Law, 5748-1988 27th Shevat, 5748 (15th February, 1988)

Cooperative Societies Ordinance (Amendment) (No.4) Law, 28th Shevat, 5748 5748-1988 (16th February, 1988)

327 Title Date of Adoption

General Rate (Restriction on Increase in 1988 4th Adar, 5748 Financial Year) Law, 5748-1988 (22nd February, 1988) Equality of Opportunities in Labour Law, 5748-1988 5th Adar, 5748 (23rd February, 1988) State Loan (Amendment No.7) Law, 5748-1988 11th Adar, 5748 (29th February, 1988)

Prisons Ordinance (Amendment No. 8) 30th Shevat, 5748 1 Law, 5748-1988 (1st March, 1988) State Service (Benefits) (Amendment No. 26) Law, 5748-1988 30th Shevat, 5748 (1st March, 1988) Employment Authority (Amendment No. 6) 19th Adar, 5748 Law, 5748-1988 (8th March, 1988)

Traffic Ordinance (Amendment) (No. 20) Law, 5748-1988 19th Adar, 5748 (8th March, 1988) Negev (Amendment) Law, 5748-1988 19th Adar, 5748 (8th March, 1988) Fishery Ordinance (Amendment) (No.2) Law, 5748-1988 19th Adar, 5748 (8th March, 1988) Maintenance of Cleanliness (Amendment) Law, 5748-1988 25th Adar, 5748 (14th March, 1988) State Service (Benefits) (Amendment No. 27) Law, 5748-1988 27th Adar, 5748 (16th March, 1988) Land Law (Amendment No. 11), 5748-1988 27th Adar, 5748 (16th March, 1988) Penal Law (Amendment No. 22), 5748-1988 4th Nissan, 5748 (22nd March, 1988) Penal Law (Amendment No. 23) 5748-1988 4th Nissan, 5748 (22nd March, 1988) Discharged Soldiers (Adjustment Grant) Law, 5748-1988 4th Nissan, 5748 (22nd March, 1988) Municipalities Ordinance (Amendment) (No. 12) Law, 5748-1988 4th Nissan, 5748 (22nd March, 1988) Penal Law (Amendment No. 28) 5748-1988 4th Nissan, 5748 (22nd March, 1988)

328 Title Date of Adoption

War Loan (Land Appreciation Charge) (5734-1974) 4th Nissan, 5748 (Amendment No.2) Law, 5748-1988 (22nd March, 1988) Loans (Voluntary Extension) Law, 5748-1988 4th Nissan, 5748 (22nd March, 1988) Operation Peace for Galilee (Financing) 4th Nissan, 5748 (Amendment) Law, 5748-1988 (22nd March, 1988) Public Health Ordinance (Amendment) (No. 10) Law, 5748-1988 4th Nissan, 5748 (22nd March, 1988) Budgetary Principles (Amendment No. 4) Law, 5748-1988 5th Nissan, 5748 (23rd March, 1988) State Economy (Arrangements) (Legislative Amendments 5th Nissan, 5748 for Attaiment of Budgetary Goals) Law, 5748-1988 (23rd Nissan,5748) Consumer Protection (Amendment) Law, 5748-1988 5th Nissan, 5748 (23rd March, 5748) Local Authorities (Election and Tenure of Head and 7th Sivan, 5748 Deputy Heads) (Amendment no. 6) Law, 5748-1988 (23rd May, 1988) Local Authorities (Confirmation and Publication 7th Sivan, 5748 of By laws) Law, 5748-1988 (23rd May, 1988) Municipalities Ordinance (Amendment) (No. 34) 29th Sivan, 5748 Law, 5748-1987 (14th June, 1988) 29th Sivan, 5748 Development Towns and Development Zones Law, 5748-1988 (14th June, 1988) 29th Sivan, 5748 Licensing of Businesses (Amendment no. 6) Law, 5748-1988 (14th June, 1988) 29th Sivan, 5748 Drug Control Authority Law, 5748-1988 (14th Sivan, 1988) 29th Sivan, 5748 Insurance Contract (Amendment No.2) Law, 5748-1988 (14th June, 5748) Victims of Hostile Actions (Pensions) (Amendment No.8) 5th Tammuz, 5748 Law, 5748-1988 (20th June, 1988) Local Authorities (Provisions For Invalids) Law, 5748-1988 6th Tammuz, 5748 (21st June, 1988) Agricultural Control Authority Law, 5748-1988 13th Tammuz, 5748 (28th June, 1988)

Emergency Regulations (Compulsory Payments) 14th Tammuz, 5748 (Extension of Validity)Law, 5748-1988 (29th June, 1988)

329 Title Date of Adoption

National Parks, Nature Reserves and National Sites 27th Tammuz, 5748 (Amendment No. 7), Law, 5748-1988 (12th July, 1988) Special Education Law, 5748-1988 27th Tammuz, 5748 (12th July, 1988) Sports Law, 5748-1988 4th Av, 5748 (18th July, 1988) Seawater Pollution from Sources On Land (Prevention) 4th Av, 5748 Law, 5748-1988 (18th July, 1988) Emergency Regulations (Protection of Educational Institutions) 4th Av, 5748 (Extension of Validity) Law, 5748-1988 (L8th July, 1988) Securities (Amendment No.9) Law, 5748-1988 6th Av, 5748 (20th July, 1988) Municipalities Ordinance (Amendment) (No.36) Law, 5748-1988 6th Av, 5748 (20th July, 1988) Political Parties (Financing) (Amendment No.7) Law, 5748-1988 11th Av, 5748 (25th July, 1988) Knesset Members (Immunities, Rights and Duties) 11th Ay, 1988 (Amendment No.5) Law, 5748-1988 (25th July, 5748) Political Parties (Financing) (Amendment No.6) Law, 5748-1988 11th Av, 5748 (25th July, 1988) Restrictive Trade Practices Law, 5748-1988 12th Av, 5748 (26th July, 1988) Income Tax Ordinance Amendment (No. 77) Law, 5748-1988 12th Av, 5748 (26th July, 1988) Amutot (Amendment) Law, 5748-1988 12th Av, 5748 (26th July, 1988) Ports Authority (Amendment No.5), Law 5748- 1988 12th Av, 5748 (26th July, 1988) Local Authorities (Elections) (Temporary Provision) 12th Av, 5748 Law, 5748-1988 (26th July, 1988) Acquisition For Public Purposes (Amendment of 12th Av, 5748 Provisions) (Amendment No. 7) Law, 5748-1988 (26th July, 1988) Negev (Amendment No. 2) Law, 5748-1988 12th Av, 5748 (26th July, 1988) Jerusalem Development Authority Law, 5748-1988 12th Av, 5748 (26th July, 1988)

330 Title Date of Adoption

State. Loan (Amendment No. 8) Law, 5748-1988 12th Av, 5748 (26th July, 1988) Egg and Poultry Board (Production and Marketing) 12th Av, 5748 (Amendment No.5) Law, 5748-1988 (26th July, 1988)

Planning and Building (Amendment No. 26) Law, 5748-1988 12th Av, 5748 (26th July, 1988) Police Ordinance (Amendment No. 9) Law, 5748-1988 13th Av, 5748 (27th July, 1988) Prisons Ordinance (Amendment No. 9) Law, 5748-1988 13th Av, 5748 (27th July, 1988) Telecommunications (Amendment No.5) Law, 5748-1988 13th Av, 5748 (27th July, 1988) Criminal Procedure (Amendment No.9) Law, 5748-1988 13th Av, 5748 (27th July, 1988) Regional Councils (Elections of Council Head) Law, 5748-1988 13th Av, 5748 (27th July,!988) Encouragement of Capital Investments 13th Av, 5748 (Amendment No. 34) Law, 5748-1988 (27th July, 1988) Knesset Elections (Amendment No. 18) Law, 5748-1988 13th Av, 5748 (27th July, 1988) Auditors (Amendment No. 4) Law, 5748-1988 13th Av, 5748 (27th July, 1988) Bank of Israel (Amendment No. 16) Law, 5748-1988 13th Av, 5748 (27th July, 1988) Copyright Ordinance (Amendment) (No.5) Law, 5748-1988 13th Av, 5748 (27th July, 1988) Twelfth Knesset Elections (Temporary Provisions) Law, 5748-1988 13th Av, 5748 (27th July, 1988) Municipalities Ordinance (Amendment) (No.37) Law,5748-1988 13th Av, 5748 (27th July, 1988) Youth (Treatment and Supervision) Law, 5748-1988 13th Av, 5748 (27th July, 1988) Traffic Ordinance (Amendment) (No. 21) Law, 5748-1988 13th Av, 5748 (27th July, 1988)

331 Tide Date of Adoption

Twelfth Knesset Elections (Temporary Provision) (No. 2) 13th Av, 5748 Law, 5748-1988 (27th July, 1988) Penal Law (Amendment No. 24), 5748-1988 13th Av, 5748 (27th July, 1988) Local Authorities (Financing of Elections) ! ' • 13th Av, 5748 (Temporary Provision)Law, 5748-1988 (27th July, 1988) Local Authorities (Elections)(Temporary Provision) 13th Av, 5748 (No.2) Law, 5748-1988 (27th July, 1988) Development Towns and Development Zones (Amendment) 13th Av, 5748 Law, 5748-1988 (27th July, 1988)

332 ALPHABETICAL INDEX OF LAWS

Title Page

A Acquisition For Public Purposes (Amendment of Provisions) (Amendment No. 7) Law, 5748-1988 175 Agricultural Control Authority Law, 5748-1988 108 Amutot (Amendment) Law, 5748-1988 265 Auditors (Amendment No. 4) Law, 5748-1988 264

B Bank of Israel (Amendment No.16) Law, 5740-1988 307 Banking (Licensing)(Amendment No.5) Law, 5748-1988 21 Basic Law: The State Comptroller 24 Benefits for Soldiers and their Families (Injury not in the Course of Duty), Law 5748-1988 ... 22 Budgetary Principles (Amendment No. 4) Law, 5748-1988 53

C Cooperative Societies Ordinance (Amendment) (No.4) Law, 5748-1988 29 Consumer Protection (Amendment) Law, 5748-1988 80 Copyright Ordinance (Amendment) (No.5) Law, 5748-1988 201 Criminal Procedure (Amendment No. 9) Law, 5748-1988 220 Currency Control (Amendment No. 2) Law, 5748-1988 20

D Development Towns and Development Zones (Amendment) Law, 5748-1988 326 Development Towns and Development Zones Law, 5748-1988 98 Discharged Soldiers (Adjustment Grant) Law,5748-1988 78 Discharged Soldiers (Return to Work) (Amendment No.8) Law,5748-1987 8 Drug Control Authority Law, 5748-1988 88

E Egg and Poultry Board (Production and Marketing) (Amemdment No. 5) Law, 5748-1988 ... 215 Electricity Supply (Special Provisions)Law, 5748-1987 3 Emergency Regulations (Judea and Samaria and Gaza Zone - Criminal Jurisdiction and Legal Assistance (Amendment and Extension of Validity) Law, 5748-1988 11 Emergency Regulations (Compulsory Payments) (Extension of Validity) Law, 5748-1988 ... 107 Emergency Regulations (Protection of Educational Institutions) (Extension of Validity) Law, 5748-1988 134 Employment Authority (Amendment No. 6) Law, 5748-1988 45 Encouragement of Capital Investments (Amendment No. 34) Law, 5748-1988 202 Equality of Opportunities in Labour Law, 5748-1988 31 Estate Duty (Repeal) (Amendment) Law, 5748-1987 , 10

333 Title Page

F Fishery Ordinance (Amendment) (No.2) Law, 5748-1988 43

G Galilee Law, 5748 - 1987 17 General Rate (Restrictioon on Increase in 1988 Financial Year) Law, 5748-1988 30

I Income Tax Ordinance Amendment (No. 76) Law, 5748-1988 23 Income Tax Ordinance Amendment (No. 77) Law, 5748-1988 225 Insurance Contract (Amendment No.2) Law, 5748-1988 269

J Jerusalem Development Authority Law,5748-1988 195

K Knesset Elections (Amendment No. 18) Law, 5748-1988 319 Knesset Members (Immunities, Rights and Duties) (Amendment No.5) Law, 5748-1988 153

L Land Law (Amendment No. 10), 5748-1987 6 Land Law (Amendment No. 11), 5748-1988 48 Licensing of Businesses (Amendment No. 6) Law, 5748-1988 97 Loans (Voluntary Extension) Law, 5748-1988 73 Local Authorities (Election and Tenure of Head and Deputy Heads) (Amendment no. 6) Law, 5748-1988 . 83 Local Authorities (Confirmation and Publication of By-laws) Law, 5748-1988 85 Local Authorities (Provisions For Invalids) Law, 5748-1988 106 Local Authorities (Elections) (Temporary Provision) Law, 5748-1988 268 Local Authorities (Financing of Elections) (Temporary Provision)Law, 5748-1988 308 Local Authorities (Elections)(Temporary Provision) (No.2) Law, 5748-1988 324

M Maintenance of Cleanliness (Amendment) Law, 5748-1988 46 Municipalities Ordinance (Amendment) (No. 12) Law, 5748-1988 51 Municipalities Ordinance (Amendment) (No. 32) Law, 5748-1987 14 Municipalities Ordinance (Amendment) (No. 34) Law, 5748-1988 96 Municipalities Ordinance (Amendment) (No.36) Law,5748-1988 191 Municipalities Ordinance (Amendment) (No.37) Law,5748-1988 192

334 Title Page

N National Parks, Nature Reserves and National Sites (Amendment No. 7) Law, 5748-1988 .... 129 Nationality (Amendment No. 5) Law, 5748-1988 9 Negev (Amendment) Law, 5748-1988 41 Negev (Amendment No. 2) Law, 5748-1988 176

0 Operation Peace for Galilee (Financing) (Amendment) Law, 5748-1988 75

P Penal Law (Amendment) (No.22),5748-1988 57 Penal Law (Amendment) (No.23),5748-1988 60 Penal Law (Amendment) (No. 24),5748-1988 223 Planning and Building (Amendment No.25) Law, 5748-1987 15 Planning and Building (Amendment No. 26) Law, 5748-1988 158 Police Ordinance (Amendment No. 9) Law, 5748-1988 271 Political Parties (Financing) (Amendment No.6) Law, 5748-1988 193 Political Parties (Financing) (Amendment No. 7) Law., 5748-1988 194 Prisons Ordinance (Amendment No. 8) Law, 5748-1988 40 Prisons Ordinance (Amendment No. 9) Law, 5748-1988 288 Ports Authority (Amendment No.5) Law, 5748-1988 177 Public Health Ordinance (Amendment) (No. 10) Law, 5748-1988 66

R Regional Councils (Elections of Council Head) Law, 5748-1988 266 Restrictive Trade Practices Law, 5748-1988 135

S Seawater Pollution From Sources On Land (Prevention) Law, 5748-1988 124 Securities (Amendment No.9) Law, 5748-1988 227 Special Education Law, 5748-1988 117 Sports Law, 5748-1988 130 State Comptroller (Transitional Provisions) Law, 5748-1988 26 State Economy (Arrangements)(LegisIative Amendments for Attainment of Budgetary Goals) Law, 5748-1988 69 State Loan (Amendment No.7) Law, 5748-1988 38 State Loan (Amendment No. 8) Law, 5748-1988 263 State Service (Benefits) (Amendment No. 26) Law, 5748-1988 39 State Service (Benefits) (Amendment No. 27) Law, 5748-1988 50

335 Title Page

T Telecommunications (Amendment No.5) Law, 5748-1988 205 Traffic Ordinance (Amendment) (No. 20) Law, 5748-1988 44 Traffic Ordinance (Amendment) (No. 21) Law, 5748-1988 270 Twelfth Knesset Elections (Temporary Provisions) Law, 5748-1988 216 Twelfth Knesset Elections (Temporary Provision) (No. 2) Law, 5748-1988 219

V Victims of Hostile Actions (Pensions) (Amendment No.8) Law, 5748-1988 104

W War Loan (Land Appreciation Charge)(5734-1974)(Amendment No.2) Law, 5748-1988 67

Y Youth (Treatment and Supervision) Law, 5748-1988 306

.336 PRINTED IN ISRAEL AT THE GOVERNMENT PRINTING PRESS JERUSALEM 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).