LAWS OF THE STATE OF

VOL. 23

5729-1968/69

From 6th Cheshvan, 5729-28.10.68 to 2nd Av, 5729-17.7.69

Authorized Translation from the Hebrew Prepared at the Ministry of Justice

PUBLISHED BY THE GOVERNMENT PRINTER LAWS OF THE STATE OF ISRAEL

VOL. 23 5729—1968/69

FROM 6th CHESHVAN, 5729—28.10.68 TO 2nd AV, 5729—17.7.69

Authorised Translation from the Hebrew Prepared at the Ministry of Justice

PUBLISHED BY THE GOVERNMENT PRINTER CONTENTS Page Laws 3 Budget Law 317 Index of Laws in the Order of the Dates of Their Adoption by the Knesset 328 Alphabetical Index of Laws 332

EXPLANATIONS I.R. (Iton Rishmî) — The Official Gazette during the tenure of the Provisional Council of State Reshumot — The Official Gazette since the inception of the Knesset Sections of Reshumot referred to in this translation : Yalkut Ha-Pirsumim — Government Notices Sejer Ha-Chukkim — Principal Legislation Chukkei Taktziv — Budgetary Legislation Kovetz Ha-Takkanot — Subsidiary Legislation Hatza'ot Chok — Bills Chukkei Taktziv (Hatza'ot) — Budget Bills Dinei Yisrael (from No. 2 : — The revised, up-to-date and binding Dinei Medinat Yisrael) Hebrew text of legislation enacted (Nusach Chadash) before the establishment of the State P.G. (Palestine Gazette) — The Official Gazette of the Mandatory Government Laws of Palestine — The 1934 revised edition of Palestine legislation (Drayton) LSI — Laws of the State of Israel NV — Laws of the State of Israel (New Ver• sion), i. e. an English edition of the revised text of pre-State legislation (see above) LAWS

(No. 1)

KNESSET ELECTIONS (AMENDMENT No. 8) LAW, 5729-1968*

1. In section 4 of the Knesset Elections Law, 5719-19591) (hereinafter Amendment of referred to as "the Elections Law"), subsections (b) and (c) shall be section 4. replaced by the following subsections: "(b) There shall be no voting except within the land area of Israel and in Israel vessels; this provision shall not apply to voting under Chapter Seven. (c) A voter may vote only at the polling-station the voters' list relating to which contains his name; this provision shall not apply to a person who votes under Chapter Seven or Eight.".

2. Section 7 of the Elections Law is hereby repealed. Repeal of 3. In section 9 of the Elections Law — section 7. (1) subsection (a) shall be replaced by the following subsection : Amendment of "(a) For the conduct of the elections, a Central Election section 9. Committee (hereinafter referred to as "the Central Committee") shall be established within 60 days from the day on which each new Knesset convenes; an outgoing Committee shall hold office until a new Committee is established."; (2) the words "the directions of the Central Committee" in sub• section (b) shall be replaced by the words "directions laid down by regulations".

4. In section 10 of the Elections Law — Amendment of section 10. (1) subsection (a) shall be replaced by the following subsection : "(a) The members of the Central Committee shall be repre• sentatives of the party groups of the Knesset."; (2) the words "not later than the 79th day before election day" in subsection (e) shall be replaced by the words "within 50 days from the day on which the Knesset convenes";

* Passed by the Knesset on the 6th Cheshvan, 5729 (28th October, 1968) and published in Sefer Ha-Chukkim No. 544 of the 15th Cheshvan, 5729 (6th November, 1968), p. 2; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 655 of 5725, p. 230. 1) Sefer Ha-Chukkim of 5719, pp. 114, 147 and 148 — LSI vol. XIII.pp. 121, 156 and 157; Sefer Ha-Chukkim of 5721, pp. 124 and 141 — LSI vol. XV, pp. 129 and 151; Sefer Ha-Chukkim of 5725, pp. 264 and 266 — LSI vol. XIX, pp. 283 and 285; Sefer Ha-Chukkim of 5726, p. 71 — LSI vol. XX, p. 66.

3 Amendment of 5. In section 11 of the Elections Law — section 11. (1) the words "not later than the 75th day before election day" shall be replaced by the words "not later than the 60th day from the day on which the Knesset convenes"; (2) subsections (b) and (c) shall be replaced by the following subsections: "(b) At an election under subsection (a), a member of the Supreme Court shall be elected Deputy Chairman. The Deputy Chairman shall hold office when the President of the Supreme Court finds that the Chairman is unable to carry out his functions. The President of the Supreme Court shall notify his finding to the Chairman of the Knesset, (c) The Central Committee shall have vice-chairmen, who shall be elected by it from among its members. The number of vice-chairmen shall be four : Provided that the House Com• mittee of the Knesset may increase their number up to eight. The four vice-chairmen shall belong to the four largest party groups in the Knesset, and if the number of vice-chairmen is increased as aforesaid, the House Committee of the Knesset shall determine to which party group the additional vice-chair• men shall belong.".

Amendment of 6. In section 12 of the Elections Law, the words "than the 68th day section 12. before election day" shall be replaced by the words "than the 15th day after the composition of the Committee is announced in the Knesset.".

Amendment of 7. In section 13(a) of the Elections Law, the words "than the 61st day" section 13. shall be replaced by the words "than the 38th day".

Amendment of 8. In section 13A(a) of the Elections Law, the words "than the 55th section 13 A. day" shall be replaced by the words "than the 38th day".

Amendment of 9. In section 14 of the Elections Law — section 14. (1) in the first subsection, the words "than the 40th day" shall be replaced by the words "than the 20th day" and the words "than the 20th day" shall be replaced by the words "than the 10th day"; (2) subsection (b) shall be replaced by the following subsection: "(b) The Central Committee shall in every year determine the number of the members of each Polling Committee and its party composition from among all the party groups represented on the Central Committee : Provided that not fewer than three party groups shall be represented on each Polling Committee.",' (3) subsection (d) shall be replaced by the following subsection: "(d) Each member of the Polling Committee shall have two permanent deputies of his own party group; a party group may demand that a member belonging to it shall have three per• manent deputies. The deputies shall be appointed by the Dis• trict Committee."

4 10. The following section shall be inserted after section 14 of the Addition of section 14A. Elections Law : "Changes in 14A. Every party group may replace its representatives membership (netzigim) on the Central Committee or a District Com• of Central Committee mittee and their deputies by giving notice, through its and District representative (ba koach, i.e. the representative within the Committee. meaning of section 17 of the Elections Law; see section 13 below — Tr.), to the Chairman of the Central Committee and the Minister of the Interior, and in the case of the replacement of a representative on a District Committee, also to the Chairman of that Committee.".

11. In section 15 of the Elections Law — Amendment of section 15. (1) in the first subsection, the words "not later than the 75th day before election day" shall be replaced by the words "within fourteen days from the day on which the Central Committee is established" and the words "within ten days from the day of its occurrence" shall be replaced by the words "within ten days from the day on which he is notified of the change and, as far as possible, before election day"; (2) in the second subsection, the words "as it shall prescribe" shall be replaced by the words "as shall be prescribed by regulations".

12. In section 16 of the Elections Law, the following subsection shall be Amendment of inserted after subsection (d): section 16. "(e) In the absence of the chairman of a District Committee, the vice-chairman designated in that behalf by the Central Committee shall act in his stead for the duration of his absence, (f) In the absence of the chairman of a Polling Committee, the vice-chairman shall act in his stead for the duration of his absence.".

13. In section 17 of the Elections Law — Amendment of (1) subsection (a) shall be replaced by the following subsection : section 17. "(a) For the purpose of the establishment of the Central Committee, a candidates' list from which members have been elected to the Knesset shall be regarded as a party group with a number of members equal to the number of candidates elected ; the representative of the candidates' list and his deputy shall be the representative of the party group and his deputy." ; (2) subsection (c) shall be replaced by the following subsection : "(c) If the party composition of the Knesset, or the name or the number of members of a party group, has changed, and the House Committee has confirmed the change, the party composition of all the Election Committees, or the name of the party group, shall be changed accordingly; Provided that if the members of the District Committees or Polling Committees were appointed before the change, the

5 change shall not entail a change of the party composition of any of those committees, and a party group left without a representative in consequence of the change shall have one member on the Committee in an advisory capacity.".

Repeal of 14. Section 17A of the Elections Law is hereby repealed. section 17 A. Amendment of 15. In section 18 of the Elections Law — section 18. (1) in the second subsection, the words "his identity number in the Population Registry" shall be inserted after the words "his first name" ; (2) subsection (c) shall be replaced by the following subsection : "(c) A candidates' list submitted by persons entitled to vote shall be signed by those submitting it, on a form prescribed by regulations, with all the particulars properly filled in and the name of the list and the names of its candidates in their proper order."; (3) subsections (d) to (f) shall be re-marked as subsections (h) to (j); (4) the following sections shall be inserted after subsection (c): "(d) In respect of each of the signatures of the persons submit• ting it, the list shall be accompanied by an affidavit under section 37 of the Evidence Ordinance1), attesting that the signature was made in the presence of the deponent; the de• ponent shall affix his signature beside the signature to which his affidavit relates. (e) A person shall not sign more than one candidates' list. If a person signs more than one candidates' list, his signatures shall be void. (f) A person entitled to vote who has signed a candidates' list cannot withdraw his signature; his death shall not invalidate his signature. (g) Where a candidates' list has been submitted by persons entitled to vote, no signatures after the first 1,500 shall be taken into account for the purposes of this section."; (5) in the ninth subsection, the words "than the 50th day" shall be replaced by the words "than the 35th day" and the words "than the 60th day" shall be replaced by the words "than the 40th day".

Amendment of 16. In section 22 of the Elections Law, the words "than the 40th day" section 22. shall be replaced by the words "than the 29th day" and the words "than the 34th day" shall be replaced by the words "than the 24th day".

Amendment of 17. In section 23 of the Elections Law, the words "than the 29th day" section 23. shall be replaced by the words "than the 20th day".

1 ) Laws of Palestine vol. I, cap. 54, p. 670 (English Edition) ; Sefer Ha-Chukkim of 5716, p. 10 — LSI vol. X, p. 10.

6 18. In section 24 of the Elections Law — Amendment of section 24. (1) in the first subsection, the words "than the 29th day" shall be replaced by the words "than the 20th day" and the words "than the 25th day" shall be replaced by the words "than the 18th day"; (2) in the second subsection, the words "than the 20th day" shall be replaced by the words "than the 13th day".

19. In section 25 of the Elections Law, the words "than 16 days' shall Amendment of be replaced by the words "than eight days". section 25.

20. In section 26 of the Elections Law — Amendment of (1) in the second subsection, the words "14 days" shall be replaced section 26. by the words "eight days"; (2) in the third subsection, the words "seven days" shall be replaced by the words "six days".

21. In section 27 of the Elections Law, subsection (c) shall be re-marked Amendment of as subsection (d) and the following subsection shall be inserted before it: section 27. "(c) Not later than the determining day, the Central Committee shall prescribe the locations of the polling stations for the forthcom• ing register year upon the proposal of the Minister of the Interior, which shall be submitted to the Committee not later than the 60th day before the determining day; for the present purpose, "the determining day" and "register year" have the same meanings as in the Knesset Voters' Register Law, 5719-19591).

22. The following section shall be inserted after section 27 of the Addition of Elections Law : section 27A. "Provisions 27A. (a) If the Chairman and Vice-chairmen of the as to special Central Committee are satisfied that in a particular cases. polling district there will be fewer than 50 persons entitled to vote, they may, not later than the 10th day before election day, join that district to the nearest polling district situated within a distance deemed reasonable by them, and upon doing so, they shall at once notify the voters and the chairmen of the Election Committees concerned in such manner as they may deem appropriate. Any person opposing the joinder may, not later than the 7th day before election day, present his arguments to the Chairman and Vice-Chairmen, who shall decide the matter finally not later than five days before election day. (b) If the Chairman and Vice-Chairmen of the Central Committee are satisfied that the number of voters in a particular polling district will exceed 1,000, or that for some other reason the queue of voters at a particular polling station is likely to be such as to delay unduly the voting of those who have come to cast

1 ) Sefer Ha-Chukkim of 5719, p. 24; LSI vol. XIII, p. 21.

7 their votes, they may, not later than the 6th day before election day, direct that there shall be a second polling station in that district; where a direction as aforesaid has been issued, the Chairman and Vice-chairmen shall at once — (1) prescribe the location of the second polling station; (2) prescribe which of the voters of that polling district shall vote at the second polling station; (3) notify, in such place and form as they may think fit, the location of the second polling station and which voters are to vote thereat; (4) prescribe which of the members of the polling committee of that polling district and which of their deputies shall be the polling committee of the second polling station for the purposes of voting and the counting of votes, and they may, for that purpose, appoint additional members to the Polling Commiittee of that polling district, provided that all the members belong to party groups represented on the Central Committee and that not less than three of the party groups of the outgoing Knesset are represented on each Committee; (5) prescribe which of the members of the Polling Committee shall be the chairman and vice-chairman of the second Polling Committee. (c) If within 30 days before election day the Chair• man and Vice-chairmen of the Central Committee are satisfied that, as a result of changed circumstances, a loca• tion in respect of which a notice has been published under section 27(d) is no longer suitable for its purpose as a polling station, they may prescribe another location and may notify the voters and the chairman of the Election Committee concerned accordingly in such place and form as they may think fit.".

Amendment of 23. In section 29(a) of the Elections Law, the expression "to 12.00 p.m." section 29. sha!l be replaced by the expression "to 11.00 p.m.". Amendment of 24. In section 30 of the Elections Law, the words "members of the section 30. Polling Committee, their deputies" shall be replaced by the words "members of the Polling Committee, the deputy of an absent member of the Polling Committee". Amendment of 25. In section 31(b) of the Elections Law, after the words "in accord- section 31. ance the Registration of Inhabitants Ordinance, 5708-1948" there shall be inserted the words "or an identity certificate issued in accordance with the Population Registry Law, 5725-19651)".

1) Sefer Ha-Chukkim of 5725, p. 270; LSI vol. XIX, p. 288.

8 26. In section 33 of the Elections Law, subsection (e) shall be repealed. Amendment of section 33. 27. The following section shall be inserted afted section 33 of the Addition of Elections Law: section 33A. "Invalid votes. 33A.(a) The following shall invalidate a vote : (1) a voting slip which does not conform with the provisions of section 33 or the size, colour or printing of which is different from that prescribed by the Central Committee; (2) a blank voting slip marked with anything but a letter and /or designation of a list or the form of the writing on which is different from that prescribed by the Central Committee; (3) a mark or thing on the voting envelope or voting slip which is likely to lead to the identification of the voter; this provision shall not derogate from the use of a blank voting slip under section 33(c); (4) a voting envelope into which a voter has placed more than one voting slip; (5) an envelope which is not one of those supplied by the Central Committee; (6) in the case of a vote cast under Chapter Seven or Eight, a voting envelope which reach• es the Central Committee later than the 7th day following election day. (b) Further provisions concerning the invalidation of votes may be enacted by regulations, provided that the relevant decision of the Central Committee has been passed by a two-thirds majority of those taking part in the voting.".

28. In section 34 of the Elections Law, the expression "10 days" shall be Amendment of replaced by the words "two days". section 34.

29. In section 35(b) of the Elections Law, the words "prescribed by the Amendment of Central Committee" shall be replaced by the words "prescribed by section 35. regulations".

30. In section 44 of the Elections Law, subsection (b) is hereby repealed. Amendment of section 44. 31. Section 46 of the Elections Law is hereby repealed. Repeal of section 46. 32. In section 52 of the Elections Law — Amendment of section 52. (1) in the first subsection, the words "including soldiers in vessels of the Defence Army of Israel which on election day are not in an Israel port" shall be inserted after the words "Defence Army of Israel" and the words "as the Central Committee shall prescribe" shall be replaced by the words "as shall be prescribed by regulations";

9 (2) in the third subsection, the words "as the Central Committee shall prescribe" shall be replaced by the words "as shall be prescribed by regulations".

Amendment of 33. In section 53 of the Elections Law — section 53. (1) in the second subsection, the words "as may be prescribed by the Central Committee after consultation with the Minister of De• fence or his representative" shall be replaced by the words "as may be prescribed by regulations" ; (2) in the third subsection, the words "as the Central Committee shall prescribe after consultation with the Minister of Defence or his representative" shall be replaced by the words "as shall be prescribed by regulations" ; (3) subsection (d) shall be repealed.

Addition of 34. Chapter Eight and Chapter Nine of the Elections Law shall, re• chapter. spectively be re-marked as Chapter Nine and Chapter Ten, and the following chapter shall be inserted before them :

"CHAPTER EIGHT : SPECIAL PROVISIONS FOR VESSELS Definitions. 56B. For the purposes of this Law, "vessel" means an Israel vessel, within the meaning of the Shipping (Vessels) Law, 5720-19601).

Delivery of 56C. Not later than the 42nd day before election day, list of vessels. the Minister of the Interior shall, after consultation with the Minister of Transport, deliver to the Central Com• mittee a list of all the vessels and any information requested by the Committee in connection with the vessels.

Designation 56D. The Central Committee shall, not later than the of vessels 37th day before election day, designate the vessels in for purposes of voting. which voting under this chapter shall take place. The Committee shall not designate a vessel as aforesaid if it is of the opinion that on file day of voting under section 56F there will be fewer than fourteen Israel nationals aged eighteen or over in it or that it will then be in an Israel port.

Persons 56E• A person who, as a seaman or passenger, is in a permitted to vessel designated as provided in section 56D may vote in vote. that vessel.

Day of 56F. Voting in a vessel shall take place on the fifth day voting. before election day. Persons 56G. (a) In every vessel in which voting takes place, responsible. the Central Committee shall, not later than thirty-five

1 ) Sefer Ha-CKukkim of 5720, p. 70 ; LSI vol. XIV, p. 60.

10 days before election day, appoint two persons responsible for the organisation and conduct of the voting (hereinafter referred to as "persons responsible"). One of the persons responsible shall be the master or, if the master is not an Israel national, the highest-ranking seaman in the vessel who is an Israel national, and the other shall be the most veteran seaman in the vessel, other than an officer, who is an Israel national. (b) Where in any vessel more than one seaman is qualified to be a person responsible, the oldest shall be the person responsible. (c) The Central Committee shall appoint depu• ties for each person responsible. A deputy shall act as a person responsible if the person responsible is unable to carry out his functions. (d) The two persons responsible in a vessel shall act together in every matter under this chapter. Voting 56H. Not later than thirty days before election day, the material. Chairman of the Central Committee shall send to the persons responsible their letters of appointment and the letters of appointment of their deputies, and he shall also send them a polling-box, a supply of inner and outer voting envelopes, blank voting slips and other election material, all as shall have been approved by the Central Committee. Notice-board. 561. Immediately upon receipt of the letters of appoint• ment under section 56H, the persons responsible shall put up, in a conspicuous position in the vessel, a notice-board to which they shall affix a notice of the designation under section 56D and of the day of voting under section 56F, as well as the notices under sections 56K to 56M im• mediately upon receipt thereof, and other notices con• cerning voting procedure. There shall be no other notices on the board. Hours and 56J. The persons responsible shall fix the hours, not less place of than eight, of voting and shall, not later than forty-eight voting. hours before the commencement of voting, publish on the notice-board a notice of the hours and place thereof. Candidates' 56K. Upon the expiration of the time for the submission lists. of candidates' lists, the Chairman of the Central Com• mittee shall send to the persons responsible a notice of the designations of the candidates' lists, the names of the candidates and the letter proposed for each list, all as submitted to the Central Committee under section 18. Changes. 56L. When the candidates' lists have been published in Reshumot under section 25, the Chairman of the Central Committee shall notify the persons responsible, by tele-

11 gram, of such changes in the particulars of the notice under section 56K as the Central Committee has decided should be notified. Notice of 56M. Where a notice of joinders of candidates' lists has joinders. been published in Reshumot under section 26, the Chair• man of the Central Committee shall notify the persons responsible accordingly by telegram. Identifica• 56N. (a) A person wishing to vote in a vessel shall tion of identify himself to the persons responsible as specified in voters. section 31(b). (b) When any person has voted, the persons re• sponsible shall impress his identification booklet or identity certificate with a stamp attesting that he has voted for the Knesset and shall punch the identity booklet or identi• fication certificate. Polling 560. The persons responsible shall assign for the voting booth. a booth concealing the voter from the view of other per• sons and shall see that there is a writing implement in it. Presence at 56P. During the hours of voting, no persons shall be place of present at the place of voting except the persons respon• voting. sible and voters who have been permitted to be present for the purpose of voting. Voting 56Q. (a) When the voter has identified himself, the procedure. persons responsible shall hand him a voting envelope and voting slip of those supplied under section 56H. In the voting booth, the voter shall write on the voting slip the letter, or letter and designation, of the list for which he votes, and shall place the slip into the voting envelope. He shall then insert the envelope into an outer envelope, on which the persons responsible shall indicate his name, his identity number in the Population Registry and other particulars prescribed by regulations. The persons re• sponsible and the voter shall thereupon sign the outer envelope, and the voter shall place it into the polling box. (b) The voter may use a printed voting slip as referred to in section 33. Record. 56R. The persons responsible shall keep a record of the progress of the voting on a form prescribed by regulations and shall sign it upon the termination of the voting.

Despatch 56S. Immediately upon the termination of the voting, of voting the persons responsible shall lock and seal the polling box material to Central and shall send it to the Central Committee, together with Committee. the record, by registered air mail or in such other manner as the Chairman of the Central Committee may have directed after consultation with the Minister of the Interior.

12 Dealing 56T. (a) The guarding and opening of the polling with boxes, the examination of the voting envelopes and the voting counting of the votes shall be done by the Central Com­ envelopes. mittee in accordance with procedure prescribed by it. (b) Where the polling box contains a voting en­ velope of a person not entitled to vote or who has already voted, the Central Committee shall destroy the envelope without opening it. Disqualified 56U. Where voting material as referred to in section 56S material. reaches the Chairman of the Central Committee, or a person empowered by him to receive it, after the seventh day following election day, the Central Committee shall not deal with it but shall direct it to be destroyed; a record of the destruction shall be prepared.

Immunity. 56V. Notwithstanding anything provided in any other law, consignments intended for the Central Committee shall not be inspected. Restrictions 56W. (a) There shall be no election propaganda in on election vessels by means of meetings or loudspeakers. propaganda. (b) No propaganda material shall be displayed in public, or distributed, in any vessel, except material sup­ plied by the Central Committee or in accordance with its instructions. (cj From 7 o'clock on the evening before the day of the voting until the termination of the voting, there shall be no election propaganda in any vessel by the transmission of wireless broadcasts through loud­ speakers. (d) Neither the master nor any seamen of officer's rank shall take part in election propaganda in any vessel. A person who contravenes this provision shall bear dis­ ciplinary responsibility in addition to criminal responsi­ bility.".

35. In section 58 of the Elections Law, the following paragraphs shall Amendment of be inserted after paragraph (5): section 58. "(6) any person who destroys, defiles, marks, conceals or takes unlawfully any voting slip situated in a polling booth at a polling station, in a manner likely to interfere with the voting; (7) any person who destroys, conceals or takes unlawfully any voting material required to be forwarded to a District Committee or the Central Committee;".

36. The following sections shall be inserted after section 58 of the Addition of Elections Law: sections 58A and 58B. "Abandon- 58A. Where the chairman of a Polling Committee or a after 36־ material6'60*0" perSOn takinS hIs Place under KCt[on 16 or completion of the counting of votes, abandons the record

13 of the voting, or the voting material, referred to in sec­ tion 35, he shall be liable to imprisonment for a term of five years or to a fine of 5,000 pounds. Non-fulfil­ 58B. A person responsible under Chapter Eight who ment of duty does not fulfil any duty imposed on him by that chapter De uaD^e t0 imprisonment for a term of five years ״resp^uiMe. s^a or to a fine of 5,000 pounds.".

Addition of 37. The following section shall be inserted after section 59 of the section 59A. Elections Law : "Modes of 59A. With regard to a bribe, it shall be immaterial — bribery. (1) whether it is money, money's worth, a service or any other benefit, except transportation of a voter in a vehicle to and from the polling station for the purpose of his voting; (2) whether it is for an act of the taker himself or for his influence upon an act of another person; (3) whether it is given by the giver personally or through another person, whether it is given to the taker personally or to another person for the taker, whether it is given in advance or ex post facto, or whether the person benefiting from it is the taker or another person.".

Amendment of 38. In section 60 of the Elections Law, paragraph (1) shall be replaced section 60. by the following paragraph : "(1) Any person who, for the purpose of identifying himself to a Polling Committee or to a person responsible under Chapter Eight, uses an identification booklet or identity certificate not his own or in which any entry or alteration was made unlawfully, with intent to mislead the Polling Committee or the person responsible, and who does not prove that such use was made in good faith;".

Amendment of 39. Section 65 of the Elections Law shall be re-marked as section 65(b) section 65. and the following subsection shall be inserted before it: "(a) Where any date appointed by this Law falls on a day of rest, within the meaning of the Law and Administration Ordinance, 5708-19481), it shall be postponed to the first workday following.".

Repeal of 40. Section 66A of the Elections Law is hereby repealed. section 66A. Amendment of 41. In section 68 of the Elections Law, subsection (a) shall be replaced section 68. by the following subsection : "(a) Every member of the Central Committee and every observer thereon under section 16(d) may inspect and copy the list of the Polling Committees and their members immediately after those Committees have been appointed.".

1 ) I.R. of 5708, Suppl. I, No. 1, p. 2 ; LSI vol. I, p. 7.

14 42. The following section shall be inserted after section 68 of the Elec• Addition of tions Law: section 68A. "Delegation 68A. The Central Committee may delegate any of its Central" °* powers to the Chairman of the Committee in association Committee. w^ deputies and entrust them with the carrying out of functions assigned to it, except the powers and functions under sections 11(c), 13, 14(b), 27(c), 33, 40, 52, 65, 70 and 71 and the power to withhold the approval of a candidates' list.".

43. In section 70 of the Elections Law, the words "the Chairman of the Amendment of Committee and his deputies, the Chairman of the Committee" shall be section 70. inserted after the words "direction of the Central Committee".

44. Section 71 of the Elections Law shall be replaced by the following Replacement of section : section 71. "Regulations 71. (a) The Minister of the Interior may, with the and temporary consent or upon the recommendation of the Central directions. Committee, make regulations as to any matter relating to this Law, in so far as this Law contains no provisions in respect thereof, and in particular, as to the following matters: (1) the preparation and conduct of the elections, and the determination of the results thereof; (2) the procedure of Election Committees; (3) the safe keeping of the voters' lists from the time they are delivered to the Central Com• mittee by the Minister of the Interior; (4) the procedure of elections among soldiers; (5) the procedure of elections in Israel vessels; (6) every matter which according to this Law is to be prescribed by regulations. (b) Regulations concerning the procedure of elec• tions among soldiers shall be made after consultation with the Minister of Defence and shall not require publication in Reshumot. The Minister of Defence or his representa• tive shall take part in the deliberations of the Central Committee relating to elections among soldiers or elec• tions in the areas referred to in section 51(a). (c) In the period from sixty days before election day until the day on which the election results are published in Reshumot, the Central Committee may issue temporary directions as to the matters referred to in subsection (a). A direction regarding which the Chairman of the Com• mittee finds that it deviates from regulations under subsection (a) shall only be issued if the Committee con-

15 siders that prevailing circumstances justify it. Directions under this subsection may be general or may apply to particular election districts or Election Committees. They shall be published or brought to the knowledge of those concerned as the Central Committee may think fit. They shall not require publication in Reshumot. (d) The Minister of Defence may, within 24 hours from a decision of the Central Committee under subsec• tion (c) on matters referred to in section 53, appeal against it to the Foreign Affairs and Security Committee of the Knesset if, in his opinion, the decision is likely to impair the security of the State. The Foreign Affairs and Security Committee may confirm, set aside or vary the decision of the Central Committee or adopt another decision instead.".

Addition of 45. The following section shall be inserted after section 72 of the section 72A. Elections Law: "Law not to 72A. This Law cannot be varied, suspended, or made be affected by subject to conditions, by emergency regulations.". emergency regulations. Amendment of 46. In section 73(a) of the Elections Law, the words "and the local section 73. authorities" shall be added after the words "all Government Ministries".

Amendment of 47. (a) In the Knesset Voters' Register Law, 5719-1959 — Knesset Voters' Register Law, (1) the following definition shall be inserted at the beginning 5719-1959. of the definitions in section (a) : " "the Committee" means the Central Elections Com• mittee under the Knesset Elections Law, 5719-1959."; (2) sections 2 to 8 are hereby repealed; (3) the words "the Minister of the Interior may prescribe" in sections 14 and 15 shall be replaced by the words "the Committee may upon the proposal of the Minister of the Interior prescribe"; (4) section 16 shall be replaced by the following section : "Determina• 16. Every year, not later than the 30th day before the tion of polling determining day, the Committee shall determine the districts. boundaries of the polling districts upon the proposal of the Minister of the Interior, which shall be submitted to it not later than the 60th day before the determining day." ; (5) sections 17 and 18 are hereby repealed; (6) section 25 shall be replaced by the following section : "Places and 25. Not later than the 37th day after the determining hours of day, the Committee shall prescribe the places of exhibition exhibition. and the hours of exhibition in each of them, upon the proposal of the Minister of the Interior, which shall be delivered to it not later than the 7th day after the determining day."; (7) section 49 shall be replaced by the following section : "Complaints 49. Every complaint in respect of an act or omission and petitions. under this Law shall be under the sole jurisdiction of the Committee. No court shall entertain a petition for relief in respect of any such act or omission or in respect of any decision or direction of the Committee, of the Chairman of the Committee and his deputies, or of the Chairman of the Committee, save as otherwise provided in this Law."; (8) section 51 shall be re-marked as section 51(a) and the following subsection shall be inserted thereafter : "(b) The Committee may delegate any of its powers under this Law, except powers for the purposes of regula• tions thereunder, to the Chairman of the Committee in association with his deputies and may entrust them with the carrying out of functions assigned to it.". (b) Notwithstanding anything provided in the Knesset Voters' Register Law, 5719-1959, regulations under this Law, except regulations as to procedure in appeals, shall be made by the Minister of the Interior with the consent or upon the recommendation of the Central Elections Committee.

1 48. In the Elections (Modes of Propaganda) Law, 571971959 ) — Amendment of Elections (1) the expression "60 days" in section 7 shall be replaced by the (Modes of expression "42 days"; Propaganda) Law, 5719-1959. (2) the following section shall be inserted after section 20 : "Law not to 20A. This Law cannot be varied, suspended, or made be affected by subject to conditions, by emergency regulations.". regulations. 49. In section 2 of the Penal Law Amendment (Offences Committed Amendment of Abroad) Law, 5716-19552), the following paragraph shall be inserted Penal Law after paragraph (9): Amendment (Offences Com• "(10) an offence under Chapter Nine of the Knesset Elections mitted Abroad) Law, 5719-1959.". Law, 5716-1955.

50. Notwithstanding anything provided in the Knesset Elections Law, Temporary 5719-1959, the Knesset Voters' Register Law, 5719-1959, or any other provisions. law, the Minister of the Interior may include in the voters' register for the register year the determining day for which is the 1st Nisan, 5729, voters whose registered adress on that day in the Population Registry is in an area held by the Defence Army of Israel, and the Minister may,

1) Sefer Ha-Chukkim of 5719, p. 138; LSI vol. XIII, p. 146. 2) Sefer Ha-Chukkim of 5716, p. 7 — LSI vol. X, p. 7; Sefer Ha-Chukkim of 5725, p. 270 — LSI vol. XIX, p. 295.

17 after consultation with the Chairman of the Central Election Committee, issue directions as to any matter relating to the implementation of this section and as to any other matter relating to the voting of voters as aforesaid; such directions shall be brought to the knowledge of those concerned as the Minister of the Interior may think fit, and shall not require publication in Reshumot.

Transitional 51. (a) The first Central Election Committee after the coming into provisions. force of this Law shall be established in accordance with the provisions thereof within 60 days after such coming into force. (b) Immediately after the establishment of the Central Election Committee under subsection (a), the Minister of the Interior shall notify the Chairman of the Committee of the polling districts determined under the Knesset Voters' Register Law, 5719-1959. The notification shall describe the districts to the extent necessary for their identification. (c) The Voters' Register Committee in office immediately before the coming into force of this Law shall continue in office until the establishment of the Central Election Committee as provided in subsec• tion (a). (d) In the first year after the coming into force of this Law, acts under sections 14(b) and 27(c) of the Elections Law shall be done within the times prescribed in those sections, but not later than forty-two days before election day. LEVI ESHKOL HAIM MOSHE SHAPIRO Prime Minister Minister of the Interior

SHNEUR ZALMAN SHAZAR President of the State

(No. 2)

TRADE UNIONS ORDINANCE (REPEAL) LAW, 5729-1968*

Repeal. 1. The Trade Unions Ordinance, 19471), is hereby repealed.

LEVI ESHKOL YOSEF ALMOGI Prime Minister Minister of Labour SHNEUR ZALMAN SHAZAR President of the State

* Passed by the Knesset on the 28th Cheshvan, 5729 (19th November, 1968) and published in Sefer Ha-Chukkim No. 545 of the 7th Kislev, 5729 (28th November, 1968), p. 14; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 787 of 5728, p. 364. 1) P.G. of 1947, Suppl. I, No. 56, p. 307 (English Edition).

18 (No. 3)

EXECUTION (AMENDMENT) LAW, 5729-1968*

1. In the Execution Law, 5727-19671) (hereinafter referred to as "the Addition of principal Law"), the following sections shall be inserted after section 81 : sections 81A and 8 IB. "Execution 81A. (a) A bill of exchange, promissory note or cheque, in respect within the meaning of the Bills of Exchange Ordinance2) of bills. (in this Law referred to as a "bill"), is capable of execu• tion like a judgment of a court, and the amount stated in the bill shall be collected with the addition of interest as fixed therein or, if no interest is fixed therein, with the addition of interest at the rate fixed in the Adjudica• tion of Interest Law, 5721-19613), from the due date of payment of the bill or, if no date is fixed therein, from the day of its presentation for payment. (b) A person desiring execution in respect of a bill shall file an application to such effect with the Execution Office, supported by an affidavit verifying the facts stated therein. (c) The debtor may file opposition to the grant of the application, supported by an affidavit setting out the facts and the grounds of opposition, and upon opposition being filed, the Chief Execution Officer shall stay execu• tion and shall refer the matter to the Court. For the purposes of the hearing in court, the opposition shall be regarded as an application for leave to defend in summary proceedings under the Civil Procedure Regulations, 5723- 1963l)>

Saving of 81B. Section 81A shall not derogate from the rights laws and and duties of the parties under the Bills of Exchange rights. Ordinance and shall not prevent the holder of a bill from bringing an action in court for the payment thereof.".

2. In section 88 of the principal Law, the following paragraph shall be Amendment of inserted after paragraph (5): section 88. "(5a) the procedure in applications for execution in respect of a bill; the filing of opposition to execution and the dates of such filing; referral to the Court in consequence of opposition; execution

* Passed by the Knesset on the 26th Kislev, 5729 (17th December, 1968) and published in Sefer Ha-Chukkim No. 546 of the 5th Tevet, 5729 (26th December, 1968), p. 16. The Bill and an Explanatory Note were published in Hatza'ot Chok No. 786 of 5728, p. 354. 1) Sefer Ha-Chukkim of 5727, p. 116 — LSI vol. XXI, p. 112. 2) Dinei Medinat Yisrael (Nusach Chadash) No. 2, p. 12; NV vol. I, p. 17. 3) Sefer Ha-Chukkim of 5721, p. 192; LSI vol. XV, p, 214. 4) Kovetz Ha-Takkanot No. 1477 of 5723, p. 1869.

19 procedure; and the local jurisdiction of Execution Offices as to execution in respect of a bill."

Commencement. 3. This Law shall come into force on the 13th Nisan, 5729 (1st April, 1969). LEVI ESHKOL YAAKOV S. SHAPIRO Prime Minister Minister of Justice SHNEUR ZALMAN SHAZAR President of the State

(No. 4)

EVIDENCE ORDINANCE (AMENDMENT No. 7) LAW, 5729-1968*

Addition of 1. In the Evidence Ordinance1), the following part shall be inserted Part VA. after Part V:

'PART VA — PHOTOGRAPHIC COPIES Interpre• 23A. In this Part — tation. "photographic copy" means a copy obtained from an original by photographic processes or by some other method prescribed by regulations, such pro• cesses or method yielding a durable exact copy of the original, whether in the original size or otherwise.

Photograph• 23B. A photographic copy of a document of a kind ic copy as designated by regulations, accompanied by a certificate evidence. that the copy was made from the original in the manner and under the conditions prescribed by regulations for that kind of document, shall be prima facie evidence in legal proceedings — (1) in every case in which it is permitted by law to prove the contents of a document by a copy thereof; (2) where the original has been destroyed by virtue of regulations, under conditions prescribed

* Passed by the Knesset on the 26th Kislev, 5729 (17th December, 1968) and published in Sefer Ha-Chukkim No. 546 of the 5th Tevet, 5729 (26th December, 1968), p. 17; the Bill and an Explanatory Note were published in Hatzctot Chok No. 780 of 5728, p. 324. 1) Laws of Palestine vol. I, cap. 54, p. 670 (English Edition); Sefer Ha-Chukkim of 5711, p. 10 — LSI vol. V, p. 10; Sefer Ha-Chukkim of 5714, p. 106 — LSI vol. VIII, p. 89; Sefer Ha-Chukkim of 5716, p. 10 — LSI vol. X, p. 10; Sefer Ha-Chukkim of 5720, p. 99 — LSI vol. XIV, p. 10; Sefer Ha-Chukkim of 5725, p. 182 — LSI vol. XIX, p. 186; Sefer Ha-Chukkim of 5728, p. 192 — LSI vol. XXII, p. 222.

20 therein, and the copy is accompanied by a certi­ ficate to that effect as prescribed by regulations for that kind of document. Saving 23C. The provisions of section 23B shall not be in of laws. derogation of but in addition to any other law relating to the admissibility as evidence of a photographic copy made otherwise than in accordance with the provisions of that section.".

2. The following section shall be inserted after section 40 of the Addition of 41־ Evidence Ordinance : section "Regulations. 41. The Minister of Justice may make regulations for the purposes of this Ordinance.".

LEVI ESHKOL YAAKOV S. SHAPIRO Prime Minister Minister of Justice SHNEUR ZALMAN SHAZAR President of the State

(No. 5)

EMERGENCY REGULATIONS (CONTROL OF SHIPS) (AMENDMENT) (EXTENSION OF VALIDITY) LAW, 5729-1968*

1. The validity of the Emergency Regulations (Control of Ships) Extension of (Amendment), 5717-19571), is hereby extended until the 3rd Tevet, 5731 validity. (31st December, 1970).

2. This Law shall come into force on the 10th Tevet, 5729 (31st Commencement December, 1968). LEVI ESHKOL MOSHE CARMEL Prime Minister Minister of Transport SHNEUR ZALMAN SHAZAR President of the State

* Passed by the Knesset on the 27th Kislev, 5729 (18th December, 1968) and published in Sefer Ha-Chukkim No. 546 of the 5th Tevet, 5729 (26th December, 1968), p. 17 ; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 780 of 5728, p. 324. 1) Kovetz Ha-Takkanot of 5717, p. 804; Sefer Ha-Chukkim of 5717, p. 96 — LSI vol. XI, p. 99; Sefer Ha-Chukkim of 5718, p. 37 — LSI vol. XII, p. 46; Sefer Ha-Chukkim of 5719, p. 15 — LSI vol. XIII, p. 14; Sefer Ha- Chukkim of 5720, p. 42 — LSI vol. XIV, p. 36; Sefer Ha-Chukkim of 5721, p. 164 — LSI vol. XV, p. 178; Sefer Ha-Chukkim of 5722, p. 92 — LSI vol. XVI, p. 79; Sefer Ha-Chukkim of 5724, p. 40 — LSI vol. XVIII, p. 37; Sefer Ha-Chukkim of 5725, p. 156 — LSI vol. XIX, p. 157; Sefer Ha- Chukkim of 5727, p. 14 — LSI vol. XXI, p. 10.

21 (No. 6)

EMERGENCY REGULATIONS (POSSESSION AND PRESENTA• TION OF IDENTITY CERTIFICATE) (EXTENSION OF VALIDITY) LAW, 5729-1968*

Extension of 1. The validity of the Emergency Regulations (Possession and Presenta• validity. tion of Identity Certificate), 5716-19561), as amemded by the Schedule, is hereby extended until the 3rd Tevet, 5731 (31st December 1970).

Commencement. 2. This Law shall come into force on the 10th Tevet, 5729 (31st December, 1968).

SCHEDULE (Section 1)

Amendment of 1. In regulation 2(a), the words "A male inhabitant" shall be replaced regulation 2. by the words "An inhabitant".

LEVI ESHKOL HAIM MOSHE SHAPIRO Prime Minister Minister of the Interior SHNEUR ZALMAN SHAZAR President of the State

(No. 7)

OBSOLETE EXCISE LAWS (F EPEAL) LAW, 5729-1968**

Repeal of 1. The Laws enumerated in the Schedule are hereby repealed. Laws. SCHEDULE

1. The Salt Ordinance2); 2. The Matches Excise Ordinance3^

• Passed by the Knesset on the 26th Kislev, 5729 (17th December, 1968) and published in Sefer Ha-Chukkim No. 546 of the 5th Tevet, 5729 (26th December, 1968), p. 18; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 796 of 5729, p. 14. 1) Sefer Ha-Chukkim of 5721, p. 20; LSI vol. XV, p. 18. »• Passed by the Knesset on the 26th Kislev, 5729 (17th December 1968) and published in Sefer Ha-Chukkim No. 546 of the 5th Tevet, 5729 (26th December, 1968), p. 18; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 800 of 5729, p. 32. 2) Laws of Palestine vol. II, cap. 130, p. 1309 (English Edition), 3) Dinei Medinat tisrael (Nusach Chadash) No. 4, p. 94; NV vol. I, p. 122.

22 3. The Playing Cards Excise Ordinance1); 4. The Tyres Excise Law, 5713-19532).

LEVI ESHKOL ZEEV SHAREF Prime Minister Minister of Finance SHNEUR ZALMAN SHAZAR President of the State

(No. 8)

BROADCASTING AUTHORITY (AMENDMENT No. 2) LAW, 5729-1968*

1. (a) In section 1 of the Broadcasting Authority Law, 5725-19653) Replacement of (hereinafter referred to as "the principal Law"), section 1 shall be re• section 1 and passim amend• placed by the following section : ments. "Interpre- 1. In this Law — tation. "the Authority" means the Broadcasting Authority established by this Law; "the broadcasts" means radio broadcasts and tele• vision broadcasts addressed to the public; "the Minister" means the member of the Govern• ment empowered by the Government to implement this Law; "the Director-General" means the Director-General of the Authority.". (b) Wherever in the principal Law the expressions "the Prime Minister" and "the Director" occur, the expressions "the Minister" and "the Director-General" shall be respectively substituted therefor.

2. Section 2 of the principal Law shall be replaced by the following Replacement of section: section 2. "The broad- 2. The Authority shall maintain the broadcasts as a casts—ana- national service.", tional service.

3. In section 3 of the principal Law, the marginal note shall be replaced Amendment of by the note "Functions of Authority" and the opening passage shall be section 3.

1) Dinei Medinat Yisrael (Nusach Chadash) No. 4, p. 96; NV vol. I, p. 124. 2) Sefer Ha-Chukkim of 5713, p. 158 — LSI vol. VII, p. 133; Sefer Ha- Chukkim of 5718, p. 20 — LSI vol. XII, p. 22. Passed by the Knesset on the 3rd Tevet, 5729 (24th December, 1968) and published in Sefer Ha-Chukkim No. 547 of the 9th Tevet, 5729 (30th December, 1968), p. 20; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 790 of 572,8, p. 370. 3) Sefer Ha-Chukkim of 5725, p. 106 — LSI vol. XIX, p. 103; Sefer Ha- Chukkim of 5726, p. 78 — LSI vol. XX, p. 72.

23 replaced by the passage "The Authority shall maintain the broadcasts with a view to carrying out the following functions :".

Amendment of 4. In section 4 of the principal Law, the words "the broadcasts of the section 4. Broadcasting Service" shall be replaced by the words "the broadcasts".

Amendment of 5. (a) In section 7(a) of the principal Law — section 7. (1) the words "twenty-five" in the opening passage shall be replaced by the words "thirty-one"; (2) paragraph (1) shall be replaced by the following paragraph : "(1) thirty members of the public (including not more than four State employees) recommended by the Govern• ment after consultation with the representative organisa• tions of writers, teachers and artists in Israel, with the institutions of higher learning and the Hebrew Language Academy and with other public bodies connected with broadcasting matters; for the purposes of this paragraph, a teacher shall not be regarded as a State employee;". (b) Section 7(b) of the principal Law shall be replaced by the following subsection : "(b) The Government shall appoint two of the members of the Plenum, not being State employees, to be the Chairman and Deputy Chairman of the Authority.".

Replacement of 6. Section 8 of the principal Law shall be replaced by the following section 8. section: "Period of 8. (a) The period of tenure of the Plenum shall be Plenum°and ^TGe vears ^rom me date of its appointment, of members (b) A member of the Plenum whose period of tenure thereof. has expired may be reappointed: Provided that he shall not serve for more than two consecutive periods of tenure. (c) Where a member of the Plenum has been ap• pointed under section 9(a), the period for which he has been so appointed shall not be included in the count of periods for the purposes of subsection (b). (d) An outgoing Plenum shall continue in office until the appointment of the incoming Plenum.".

Amendment of 7. In section 9 of the principal Law — section 9. (1) the marginal note shall be replaced by the note "Termination of membership and appointment of substitute"; (2) in the first subsection, the words "by written notice to the Prime Minister" shall be deleted and the words "for the remainder of his period of tenure" shall be replaced by the words "for the remainder of the period of tenure of the Plenum."; (3) the following subsections shall be inserted after subsection (a): "(al) The resignation of a member of the Plenum shall be by

24 written notice to the Chairman of the Authority, and the Chair• man shall deliver the notice to the Minister upon the expiration of ninety-six hours. The resignation shall become effective upon delivery of the notice to the Minister. (a2) The resignation of the Chairman or Deputy Chairman of the Authority, as such, shall be by notice to the Plenum and by written notice to the Minister. The resignation shall become effective upon the expiration of ninety-six hours from the delivery of the notice to the Minister.".

8. In section 10 of the principal Law, the closing passage shall be Amendment of replaced by the passage "The Chairman and the Deputy Chairman section 10. shall be entitled to reasonable recompense, prescribed by regulations, for the time devoted to the discharge of their functions".

9. In section 11 of the principal Law, the words "one third of its Amendment of members" shall be replaced by the words "ten of its members" and the section 11. words "The Director of the Broadcasting Service (hereinafter referred to as "the Director") "shall be replaced by the words "The Director- General".

10. Section 12 of the principal Law shall be replaced by the following Replacement of sections: section 12 and addition of "Procedure. 12. (a) The Plenum shall prescribe its rules of procedure section 12 A. in so far as they are not prescribed by any Law. (b) Sixteen members of the Plenum, including the Chairman or Deputy Chairman, shall be a quorum at the meetings of the Plenum. In the absence of a quorum at a meeting of the Plenum, the Chairman shall convene a second meeting within ten days from the date fixed for the earlier meeting. That meeting shall be legal whatever the number of those present. (c) The Plenum may set up committees from among its members and may delegate any of its powers to them as to specific matters, which shall be set out in the Plenum's decision: Provided that the Plenum shall not delegate to a committee any of its powers under paragraph (1) or (5) of section 13. (d) One third of the members of a committee under subsection (c) may object before the Plenum to any decision of the committee passed against their votes. (e) The Plenum may set up advisory committees for the different branches of its activities; they may include both members and non-members of the Plenum. (f) The Deputy Chairman shall carry out the func• tions and exercise the powers of the Chairman if — (1) the Chairman is absent or unable to carry out his functions; or (2) he has been asked to do so by the Chairman.

25 Objection by 12A. (a) Ten members of the Plenum may object Remrai* °* before the Minister to a decision passed against their votes. (b) The objection shall be submitted to the Minister through thé Chairman of the :Authority. '•(c) After?hèaring the representatives of the objec• tors and the représentatives of the majority, of the Plenum, the Minister may dismiss the. objection.,It he does not dismiss the objection as•;^oresai'd^heTsfa'alt^efer it to the Government^fpr^eterminationilaMd shaltfstay/; the imple• mentation of ;|the decision-^jpendihg; sûçhS determination. f ; "(d) .Tnèl'Gwérnmeht*shall be ,informed by the •Minister•, ôtfjltHê. •'.substance :^of$'the arguments of the objectors' aridgrf ;;.the!majority of the Plenum and shall decide upon^tijéf objection.".

Amendment of 11. In section 13 of the principal Law — .,..״'. .section 13 (1) the following paragraph shall be inserted after paragraph (1) : "(là) to consider reports of committees set up by the Authority;"; (2) paragraph (3) shall be replaced by the following paragraphs : "(3) to approve the seasonal scheme of broadcasts, without prejudice to its power to decide from time to time upon a particular broadcast in all its aspects; (3a) to receive from the Managing Committee the drafts prepared by it of the ordinary budget and the development budget, to consider the same and to transmit its recommenda• tions to the Managing Committee;"; (3) paragraph (5) shall be replaced by the following paragraphs : "(5) to consider the annual report submitted to it by the Managing Committee and to formulate its conclusions; (6) to consider any such other matter as it may think fit and to formulate its conclusions.";

Amendment of 12. In section 14(a) of the principal Law, the words "five members" section 14. shall be replaced by the words "seven members" and the words "and three other members of thePlenum" shall be replaced by the words "and five other members of the Plenum".

Replacement of 13. Section 16 of the principal Law shall be replaced by the following section 16. section : "Resignation; 16. (a) Where a member of the Managing Committee

appointment jjas resjgned his seat or for any other reason ceased to be

of substitute. a member Q£ tfcg Managing Committee, another member shall be appointed in his place, in accordance with section 14, for the remainder of the period of tenure of the Plenum.

26 (b) The resignation of a member of the Managing Committee from his seat thereon shall be by written notice to the Chairman, who shall deliver the notice to the Minister upon the expiration of ninety-six hours. The resignation shall become effective upon the delivery of the notice to the Minister.".

14. Section 18 of the principal Law shall be replaced by the following Replacement of section : section 18. 18. The Managing Committee shall act in accordance "Subordina• tion to with the policies laid down by the Plenum and with the Plenum. decisions, conclusions and directions thereof and shall give its opinion as to the recommendations thereof, all as provided in section 13.".

15. In section 19 of the principal Law — Amendment of section 19. (1) paragraphs (1) and (2) shall be replaced by the following paragraphs: "(1) to consider and decide upon matters of the Authority; (2) to receive from the Director-General reports on the current work of the Authority;"; (2) the words "accompanied by the recommendations of the Plenum under section 13 (3a)" shall be inserted after the words "and submit to the Government for approval" in paragraph (3).

16. The following section shall be inserted after section 20 of the prin• Addition of cipal Law: section 20A. "Objection 20A. The Managing Committee may object before the before Plenum to any decision given by a committee by virtue of Plenum. a delegation of powers under section 12(c).".

17. The marginal note to section 21 of the principal Law shall be Amendment of amended to read "Objections by members of Managing Committee". section 21.

18. Section 23 shall be replaced by the following sections: Replacement of section 23 and "Appoint• 23. (a) The Director-General shall be appointed in the addition of ment of manner indicated in this section. sections 23A, Director- 23B and 23C. General. (b) When the post of Director-General has fallen vacant, the Chairman of the Authority shall, at the request of the Minister, convene the Plenum to consider candi• dates for the post. Deliberations shall be held within thirty days from the date of the request, and the Minister shall be invited to take part therein. (c) If there is no quorum at the opening of the deliberations, the Chairman of the Authority shall con• vene the Plenum for deliberations which shall take place within ten days from the date fixed for the earlier delibera-

27

f tions. These and any further deliberations on the said subject shall be legal whatever the number of those present, provided that the Minister has been invited to take part. (d) The Minister, or not less than nine members of the Plenum present at the deliberations, may propose candidates thereat for the post of Director-General. (e) Upon termination of the deliberations in the Plenum, the Minister shall propose to the Government a candidate, from among the candidates proposed at the deliberations in one of the two. ways indicated in subsec• tion (d), and shall bring the substance of the delibera• tions to the knowledge of the Government. (f) The Government may appoint one of the following to the post of Director-General: (1) a candidate proposed by the Minister; (2) a candidate who was supported by a majority, not less than nine, of the members of the Plenum present at the close of the delibe• rations. (g) If the Government does not appoint a candidate as aforesaid, all the proceedings under this section shall be taken again. Period of 23A. (a) The appoinment of the Director-General tenure of shall be for five years, but his post shall become vacant Director- General. before the end of that period in one of the following cases: (1) if he has resigned; (2) if, in the opinion of the Government after consultation with the Managing Com• mittee, he is permanently unable to carry out his functions; (3) if the Government, upon the proposal of the Minister made after consultation with the Plenum, or upon the proposal of the Plenum supported by at least twenty-one members thereof, decides to remove him from office. (b) The provisions of section 16(b) shall apply to the resignation of the Director-General. Appoint• 23B. If the post of Director-General has fallen vacant, ment of or the Director-General is temporarily absent or, in the Acting Director- opinion of the Minister arrived at after consultation with General. the Chairman of the Authority, temporarily unable to carry out his functions, the Minister shall, in consultation with the Chairman of the Authority, appoint an Acting

28 Director-General for a period of three months, and the Minister may, after consultation as aforesaid, extend the appointment for an additional three months. Subordination 23C. The Director-General shall act in accordance with to Managing tjje decisions and directives of the Managing Committee ommi ee. sha.ll take part in its meetings in an advisory capacity.".

19. In section 24(c) of the principal Law, the word "producers" shall Amendment of be inserted after the expression "programme editors"1) and the words section 24. "or assignments" shall be inserted after the word "periods".

20. In section 29(a) of the principal Law, the words "a fee" and "the Amendment of fee" shall be respectively replaced by the words "fees" and "the fees" and section 29. the words "and television receiving sets" shall be inserted after the words "wireless receiving sets".

21. In section 33(a) of the principal Law, the words "for the operation Amendment of and supervision of the Broadcasting Service" shall be replaced by the section 33. words "for the operation of the Authority and the supervision of the broadcasts".

22. In section 35 of the principal Law, the words "and programmes of Amendment of the Broadcasting Service" shall be replaced by the words "and program• section 35. mes of the Authority's broadcasts".

23. The following section shall be inserted after section 37 of the prin• Addition of cipal Law : section 3 7 A. "Restrain- 37A. For the purposes of relief by way of restraining ing injunc- injunction, the Authority shall have the status of the State as to any matter directly or indirectly connected with the broadcasts or their preparation.".

24. Section 42 of the principal Law shall be replaced by the following Replacement of section : section 42.

"Transfer of 42. (a) The Authority shall not transfer any of its functions. functions under this Law, save by a decision of the Plenum of the Authority and with the approval of the Govern• ment, and the Authority may decide upon the conditions on which any such function shall be transferred. (b) Subsection (a) shall not apply to a delegation of functions under section 12(c).".

25. In section 44 of the principal Law, the words "after consultation Amendment of with the Managing Committee" shall be inserted at the end. section 44.

The word "producers" in the earlier English version of this subsection should be corrected to "stage managers" (Tr.).

29 Addition of 26. The following sections shall be inserted after section 44 of the prin• sections 44A cipal Law : and 44B. "Use of 44A. (a) The channel placed at the disposal of the channel. State of Israel, under international arrangements, for the purposes of television broadcasts shall be used — (1) for the broadcasts of the Authority; (2) for instructional television broadcasts to schools. (b) The procedures for the use of the channel shall be prescribed by the Minister of Posts together with the Minister, after consultation with the Managing Com• mittee, and subject to subsection (c). (c) The procedures for the use of the channel for instructional television broadcasts as referred to in subsec• tion (a) (2) shall be prescribed by the Minister of Posts and the Minister together with the Minister of Education and Culture after the Minister has consulted with the Managing Committee. In the event of disagreement be• tween the Ministers, the Government shall decide. (d) Subsections (a) (2) and (c) shall be in force until the 6th Nisan, 5731 (31st March, 1971). Broadcasts 44B. The Minister may, after consultation with the of films. Managing Committee, prescribe by regulations the pro• portion between the broadcasting hours of full-length feature cinema films, or of television films copied from them, and the total of broadcasting hours, as well as the hours of the day* during which films as aforesaid shall be broadcast".

Amendment of 27. In section 46 of the principal Law, the words "the Broadcasting section 46. Authority" shall be replaced by the words "the Authority".

Amendment of 28. In section 48(b) of the principal Law, the words "Broadcasts" shall section 48. be replaced by the words "Radio Broadcasts" and the words "the Broadcasting Service" shall be replaced by the words "the broadcasts of the Authority".

Amendment of 29. In section 49 of the principal Law — section 49. (1) the opening passage shall be replaced by the following passage : "Without prejudice to the provisions of any enactment introducing the requirement of licensing for a broadcast or a broadcasting instrument, the provisions of this Law shall not apply — (2) paragraph (1) shall be replaced by the following paragraph : "(1) to such broadcasts by army or police stations as are not addressed to the public;" ;

* The Hebrew term, yemama, means a whole day (from midnight to midnight) (Tr.).

30 (3) the words "limited-range broadcasts" in paragraph (2) shall be replaced by the words "limited-range or closed-circuit broadcasts or other broadcasts not addressed to the public".

30. (a) The appointment of the Plenum of the Authority, of the Transitional Managing Committee and of the Director of the Broadcasting Service provisions, shall terminate upon the expiration of three months from the coming into force of this Law, or upon the appointment of the Plenum of the Authority, the Managing Committee and the Director-General under this Law, whichever is the earlier event. (b) The period of tenure of a member of the Plenum prior to the coming into force of this Law shall not be included in the count of periods for the purposes of section 8(b) of the principal Law. (c) Subject to the provisions of this Law, the Government shall, upon the proposal of the Minister made after consultation with the Managing Committee, prescribe the structure of the Authority following the incorporation of television broadcasts within the framework of the Authority, including transitional arrangements.

LEVI ESHKOL ISRAEL GALILI Prime Minister Minister SHNEUR ZALMAN SHAZAR President of the State

(No. 9)

EMERGENCY REGULATIONS (INCREASING THE EFFICIENCY OF CIVIL DEFENCE SERVICES) (EXTENSION OF VALIDITY) LAW, 5729-1968*

1. The validity of the Emergency Regulations (Increasing the Efficien- Extension of cy of Civil Defence Services), 5727-19671), is hereby extended until the va,lditv• 22nd Tevet, 5730 (31st December, 1969).

2. This Law shall come into force in the 10th Tevet, 5729 (31st Commencement. December, 1968). LEVI ESHKOL MOSHE DAYAN Prime Minister Minister of Defence SHNEUR ZALMAN SHAZAR President of the State

* Passed by the Knesset on the 2nd Tevet, 5729 (23rd December, 1968) and published in Sefer Ha-Chukkim No. 547 of the 9th Tevet, 5729 (30th December 1968), p. 25; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 797 of 5729, p. 16. 1) Kovetz Ha-Takkanot No. 2051a of 5727, p. 2526A; Sefer Ha-Chukkim of 5728, p. 16; LSI vol. XXII, p. 16.

31 (No. 10)

COMMISSIONS OF INQUIRY LAW, 5729-1968*

Decision to 1. When it appears to the Goverment that a matter exists which is set up at the time of vital public importance and requires clarification, it may commission. decide to set up a commission of inquiry which shall inquire into the matter and shall make a report to it.

Definition of 2. In the decision setting up a commission of inquiry, the Government subject of shall define the matter which is to be the subject of the inquiry. inquiry. Number of 3. A commission of inquiry shall consist of three members unless the members of Government, after consultation with the President of the Supreme Court, commission. determines that it shall consist of a greater uneven number of members.

Appointment 4. (a) When the Government has decided to set up a commission of of chairman inquiry, it shall notify such fact to the President of the Supreme Court, and members of commission. who shall appoint the chairman and the other members of the com• mission. (b) The chairman of the commission of inquiry shall be a Judge of the Supreme Court or a Judge of a District Court. Where a com• mission includes more than one judge, the Judge of the court of higher rank, and where it includes more than one Judge of a court of a particular rank, the one with the greatest length of service in that court shall be the chairman of the commission. (c) The appointment of a Judge as member of a commission of inquiry shall not require the consent of the Minister of Justice under section 19 of the Judges Law, 5713-19531).

Notice of 5. Notice of the setting-up of a commission of inquiry, of the subject setting-up of the inquiry, as defined by the Government, and of the names of the of commission. members of the commission shall be published in Reshumot.

Changes in 6. (a) If a member of a commission of inquiry has died or is per• membership. manently unable to carry out his functions, the President of the Supreme Court shall appoint another person to be a member of the commission in his place. (b) Where the composition of a commission of inquiry has changed, then, unless the commission otherwise decides, it shall continue its work from the stage which it had reached before the change.

Procedure. 7. A commission of inquiry shall prescribe the procedure for its work and deliberations in so far as it is not prescribed by this Law or by regulations thereunder.

* Passed by the Knesset on the 9th Tevet, 5729 (30th December, 1968) and published in Sefer Ha-Chukkim No. 548 of the 18th Tevet, 5729 (8th January, 1969), p. 28; the Bill and an Explanatory Note were published in Hatzdot Chok No. 747 of 5728, p. 8. 1 ) Sefer Ha-Chukkim of 5713, p. 149 — LSI vol. VII, p. 124.

32 8. (a) Save as otherwise provided in this Law or in regulations made Independence at thereunder, a commission of inquiry is not bound to follow the rules of to rules of procedure and procedure of a court, and it may admit any evidence in any manner rules of deemed by it to be expedient and lay down procedure for the examina• evidence. tion of witnesses. (b) Save as otherwise provided in this Law, a commission of inquiry is not bound by the rules of evidence.

9. (a) The chairman of a commission of inquiry may, with the sanc• Powers of tion of the commission — chairman. (1) summon, and resummon, a person to attend before the commission and to testify or to produce documents or other exhibits in his possession; (2) require a witness to testify on oath or affirmation in accordance with the provisions of the enactment applicable to the matter in a civil court; (3) compel the attendance of a person who without satisfactory excuse has failed to comply with a summons under para• graph (1); (4) order the taking of evidence abroad. (b) The powers of the chairman of a committee as to these matters shall be the same as those of a court in a civil proceeding.

10. (a) A person summoned to testify before or to produce a document Status of or other exhibit to a commission of inquiry shall have the same duties witness. as a person examined under section 2 of the Criminal Procedure (Evi• dence) Ordinance1). (b) Subsection (a) shall not derogate from sections 5A to 5F of the Evidence Ordinance2).

11. (a) Where a person— Refusal to (1) having been summoned to attend before a commission of te8tifv• inquiry has not so attended, or has attended but has without permission left the commission's place of sitting before giving evidence; or (2) having been required to produce a document or other exhibit in his possession has not produced it; or (3) having been lawfully required to take an oath or make an affirmation has not done so; or (4) having been lawfully required to answer a question has not answered it or has knowingly given an evasive answer, the chairman of the commission may, with the sanction of the commis• sion, impose on him, even in his absence, a fine not exceeding 200 pounds.

1) Laws of Palestine vol. I, cap. 34, p. 467 (English Edition). 2) Laws of Palestine vol. I, cap. 54, p. 670 (English Edition).

S3 (b) Where the chairman of the commission of mquiry has imposed a fine under subsection (a) on a person in his absence, he may, on the application of that person and with the sanction of the commission, reconsider the fine and may reduce or cancel it, and he shall cancel it if he is satisfied that the applicant refrained from doing as required for reasons beyond his control. (c) Where the chairman of the commission of inquiry has imposed a fine under subsection (a), he shall immediately notify such fact, in writing, to the President of the Supreme Court, and the President or another Judge of the Supreme Court may, upon the application of the person on whom the fine has been imposed or otherwise, cancel or reduce the fine. (d) A fine imposed under subsection (a) shall be collected like a fine imposed by a court in a criminal proceeding. (e) Where a person, having failed to comply on being summoned or required as specified in subsection (a), is again so summoned or required and without reasonable excuse again fails to comply, he shall be liable to imprisonment for a term of two years. The imposition of a fine under subsection (a) shall not prevent the filing of a charge under this subsection.

Search 12. Where it appears to a commission of inquiry that a search should warrant. be made in order to ensure the production of a document or other exhibit required for the inquiry, the chairman of the commission may issue a search warrant. The warrant shall be issued and executed in like manner as a search warrant under the Criminal Procedure (Arrest and Searches) Ordinance1).

Collection of 13. (a) Where it appears to the commission that it is necessary to material. collect material required for the inquiry, the chairman of the commission may assign this task to a person who in the opinion of the commission is qualified for it. (b) Where the commission sees fit to entrust the collection of material to an attorney of the State Attorney's Department or to a police officer, the same shall be placed at its disposal by the Attorney- General or by the Inspector-General of the Israel Police, as the case mays be. (c) Sections 9(a) (1) and 10 shall apply to the-collection of material under this section.

Status of 14. Testimony given before a commission of inquiry or before a person testimony. entrusted with the collection of material under section 13 shall not be evidence in any legal proceeding, other than a criminal action in respect of the giving of that testimony.

Person 15. (a) Where it appears to a commission of inquiry that a particular likely to be person is likely to be harmed by the inquiry or by its results, the chairman harmed.

1) Laws of Palestine vol. I, cap. 33, p. 459 (English Edition).

34 of the commission shall notify that person in what respect he is likely to be harmed and shall place at his disposal, in such manner as he may think fit, such evidence relevant to that potential harm as is in the possession of the commission or of a person entrusted with the collection of material under section 13. (b) A person notified under subsection (a) may attend before the commission either himself or through an advocate, make statements and examine witnesses (even if they have already testified before the com• mittee), and the commision may permit him to present evidence, all in relation to the said potential harm. (c) A person at whose disposal evidence has been placed under subsection (a) shall not publish any part thereof without the prior approval of the commission.

16. The Attorney-General may, himself or through his representative, Attorney- attend before a commission of inquiry, within the framework of the General, procedure laid down under sections 7 and 8, take part in the examina• tion of witnesses and make statements, and he shall do so if the com• mission so requests.

17. A commission of inquiry may instruct an advocate not in the State Appointment Service to assist it in any matter it may think fit, including the examina- of advocate• tion of witnesses testifying before it.

18. (a) A commission of inquiry shall deliberate in public : Provided Publicity of that it may hold the whole or part of any hearing in camera if it deems hearings. it necessary so to do in the interest of protecting the security of the State, safeguarding morality or safeguarding the welfare of a minor. (b) The provisions of sections 38(d), 39, 40(b), (d) and (e), 41, 42 and 43 of the Courts Law, 5717-19571), shall apply mutatis mutandis to a commission of inquiry, and the provisions of section 38 of the Penal Law (State Security, Foreign Relations and Official Secrets) Law, 5717- 19572), shall apply mutatis mutandis to a person who attends before a commission under section 15. The powers vested in the court by the said provisions shall vest in the chairman of the commission.

19. (a) Upon completion of its proceedings, a commission of inquiry Report of shall prepare a report of the results of its inquiry and, if it sees fit to add commission, recommendations, of such recommendations, and shall submit such report to the Government. (b) Where a member of the commission dissents from the commis• sion's report, his dissenting opinion shall be attached to such report.

20. (a) A commission of inquiry shall publish its report shortly after Publication, its submission to the Government : Provided that it may refrain from

1) Sefer Ha-Chukkim of 5717, p. 148; LSI vol. XI, p. 157. 2) Sefer Ha-Chukkim of 5717, p. 172; LSI vol. XI, p. 186. publishing the whole or part of the report if it deems it necessary so to do in the interest of protecting the security of the State, safeguarding morality or safeguarding the welfare of a minor. (b) If the commission decides not to publish anything of its report, it shall publicly announce the submission of the report to the Govern• ment and its decision not to publish it. (c) The commission may, if it sees fit so to do, publish the whole or part of the minutes of its proceedings.

Right of 21. If the report of a commission of inquiry raises a suspicion that a person particular person has committed an offence, and it has been decided not suspected of an offence. to bring him to trial for that offence, the Attorney-General shall, on his application, notify him of the reasons for the decision and, on his ap• plication, publish such reasons.

Report not 22. The report of a commission of inquiry shall not be evidence in any to be legal proceeding. evidence.

Subject 23. Where the Government, with the approval of the Foreign Affairs requiring and Security Committee of the Knesset, determines that the subject- secrecy. matter of the inquiry, or the proceedings of the commission, requires or require secrecy, the following provisions shall apply, unless the Govern• ment, with approval as aforesaid, decides to deviate from all or part of them: (1) A notice of the setting-up of the commission of inquiry shall not be published; (2) the provisions of section 38 of the Penal Law (State Security, Foreign Relations and Official Secrets) Law, 5717-1957, shall apply mutatis mutandis; (3) a person who attends before the commission under section 15 shall only be represented by an advocate authorised to act as defence counsel under section 18 of the Military Justice Law, 5715-19551); (4) the proceedings of the commission shall be held in camera; (5) the commission shall submit its report also to the Foreign Affairs and Security Committee of the Knesset; (6) the commission shall not publish its report or the minutes of its proceedings.

Immunity of 24. A person who serves or has served as a member of a commission of member of inquiry shall, in connection with his functions as a member of the commission. commission, have every immunity granted by law to a Judge, and, for the purposes of section 131 of the Criminal Code Ordinance, 19362), he shall be deemed to be a Judge.

1) Sefer Ha-Chukkim of 5715, p. 171; LSI vol. IX, p. 184. 2) P.G. of 1936, Suppl. I, No. 652, p. 285 (English Edition).

36 25. In the Criminal Code Ordinance, 1936 — Amendment of Criminal Code (1) the words "or commission of inquiry" shall be inserted after Ordinance, the words "or tribunal" in the fourth paragraph of section 117(1); 1936. (2) the words "or commission of inquiry" shall be inserted after the words "or tribunal" in section 119; (3) the words "and also a commission of inquiry or a person ap• pointed under section 13 of the Commissions of Inquiry Law, 5729- 1968" shall be inserted at the end of the definition of "authority" in section 120A.

26. A person who, without approval, publishes any part of material Prohibition of placed at his disposal under section 15 or who publishes any part of the publication. proceedings of a commission of inquiry held in camera or of any unpub• lished report or minutes of a commission of inquiry shall be liable to imprisonment for a term of six months.

27. (a) A member of a commission of inquiry is entitled to receive Expenses and expenses in amounts fixed by the Director of Courts. The Director of remuneration. Courts may award to a member of a commission of inquiry a remunera• tion of an amount fixed by him if he deems it justified so to do in the circumstances of the case. (b) Where a witness has been summoned to testify, or to produce any document or other exhibit, before a commission of inquiry, the chairman of the commission may award him travelling and lodging expenses, and a loss-of-working-time allowance, as if he were a witness summoned to testify before a court. (c) A person not in the State Service charged with the collection of material under section 13 or an advocate charged with a task under section 17A is entitled to receive, in addition to reasonable expenses, remuneration of an amount fixed by the commission. (d) Where a person has attended before a commission of inquiry under section 15, the commission may award him expenses, including representation expenses, of an amount fixed by it. (e) The amounts referred to in this section shall be paid out of the Treasury.

28. (a) This Law shall not derogate from the power of a Minister to Saving of appoint an investigation commission to examine any matter within the powers and scope of his functions so long as a commission of inquiry under this Law adaptation of enactments. has not been appointed in respect thereof. Where a commission of in• quiry has been appointed, an investigation commission shall not continue its activity. (b) Wherever under any enactment a person or authority is or may be granted powers of a commission of inquiry under the Commissions of Inquiry Ordinance1), and wherever a person or authority has been em-

1) Laws of Palestine vol. I, cap. 21, p. 157 (English Edition).

37 powered by any enactment to collect evidence for the purpose of ex• ercising his or its power under any law, the provisions of sections 9 to 11 shall apply to him or it mutatis mutandis.

Bar to 29. The powers of the Government under this Law are not capable of delegation delegation. of powers. Repeal. 30. The Commissions of Inquiry Ordinance is hereby repealed.

Implementation 31. The Minister of Justice is charged with the implementation of this and regulations. Law and may make regulations as to any matter relating to such imple• mentation, including the procedure of commissions of inquiry.

LEVI ESHKOL YAAKOV S. SHAPIRO Prime Minister Minister of Justice SHNF.UR ZALMAN SHAZAR President of the State

(No. 11)

EMERGENCY REGULATIONS (AREAS HELD BY THE DEFENCE ARMY OF ISRAEL — CRIMINAL JURISDICTION AND LEGAL ASSISTANCE) (EXTENSION OF VALIDITY) LAW, 5729-1968*

Extension of 1• The validity of the Emergency Regulations (Areas Held by the validity. Defence Army of Israel — Criminal Jurisdiction and Legal Assistance), 5727-19671), is hereby extended until the 22nd Tevet, 5730 (31st December, 1969).

Commencement. 2. This Law shall come into force on the 10th Tevet, 5729 (31st December, 1968). LEVI ESHKOL YAAKOV S. SHAPIRO Prime Minister Minister of Justice SHNEUR ZALMAN SHAZAR President of the State

• Passed by the Knesset on the 9th Tevet, 5729 (30th December, 1968) and published in Sefer Ha-Chukkim No. 548 of the 18th Tevet, 5729 (8th January, 1969). p. 32; the Bill and an Explanatory Note were published in Hatia'ot Chok No. 798 of 5729, p. 20. 1) Kovetz Ha-Takkanot No. 2069 of 5727, p. 2741; Sefer Ha-Chukkim No. 517 of 5728, p. 20 — LSI vol. XXII, p. 20.

38 (No. 12)

SUPREME HEBREW LANGUAGE INSTITUTE (AMENDMENT No. 2) LAW, 5729-1968*

1. In section 4 of the Supreme Hebrew Language Institute Law, Amendment of 5713-19531), after the words "and not more than twenty-three" in section 4. subsection (a), there shall be inserted the words "Members of the age of seventy-five or over shall not be included in this count".

LEVI ESHKOL ZALMAN ARANNE Prime Minister Minister of Education and Culture SHNEUR ZALMAN SHAZAR President of the State

(No. 13)

COMPULSORY EDUCATION (AMENDMENT No. 4) LAW, 5729-1968**

1. In section 4 of the Compulsory Education Law, 5709-19492) — Amendment of section 4. (1) after the words "unless the parent proves" in the closing pas• sage of subsection (b) (1), there shall be inserted the words "beyond all doubt"; (2) at the end of subsection (g), there shall be inserted the words "and the principal of the educational institution shall send the parents of the child or adolescent a notice as referred to in subsec• tion (b) (2) and shall forward a copy thereof to the local education authority". LEVI ESHKOL ZALMAN ARANNE Prime Minister Minister of Education and Culture SHNEUR ZALMAN SHAZAR President of the State

* Passed by the Knesset on the 9th Tevet, 5729 (30th December, 1968) and published in Sefer Ha-Chukkim No. 548 of the 18th Tevet, 5729 (8th January, 1969), p. 33; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 786 of 5728, p. 355. 1) Sefer Ha-Chukkim of 5713, p. 168 — LSI vol. VII, p. 148; Sefer Ha- Chukkim of 5723, p. 65 — LSI vol. XVII, p. 79. ** Passed by the Knesset on the 9th Tevet, 5729 (30th December, 1968) and published in Sefer Ha-Chukkim No. 548 of the 18th Tevet, 5729 (8th January, 1969), p. 33; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 789 of 5728, p. 374. 2) Sefer Ha-Chukkim of 5709, p. 287 — LSI vol. Ill, p. 125; Sefer Ha-Chukkim of 5710, pp. 126 and 314 — LSI vol. IV, pp. 91 and 184; Sefer Ha-Chukkim of 5713, p. 140 — LSI vol. VII, p. 116.

39 (No. 14)

EMERGENCY REGULATIONS (EMERGENCY WORK VOLUNTEERS) (INSURANCE) (EXTENSION OF VALIDITY) LAW, 5729-1968*

Extension of 1. The validity of the Emergency Regulations (Emergency Work validity. Volunteers) (Insurance), 5727-19671), is hereby extended until the 26th Sivan, 5730 (30th June, 1970).

Commencement. 2. This Law shall have effect from the 10th Tevet, 5729 (31st December, 1968). LEVI ESHKOL YOSEF ALMOOI Prime Minister Minister of Transport SHNEUR ZALMAN SHAZAR President of the State

(No. 15)

LOCAL AUTHORITIES (ELECTIONS) (AMENDMENT No. 2) LAW, 5729-1969**

Amendment of 1. In section 1 of the Local Authorities (Elections) Law, 5725-19652) section 1. (hereinafter referred to as "the principal Law"), the definition of "the determining day" shall be replaced by the following definitions : " "register year" means the period beginning with the 15th Av of a particular year and ending with the 14th Av of the following year; "the determining day", in relation to a particular register year, means the 1st Nisan preceding that register year;".

Replacement of 2. Sections 12 to 23 of the principal Law shall be replaced by the

sections 12 to 23. f0Howmg sections:

"Preparation 12. For every register year, a supplementary list shall of supplement- be prepared for each of the polling districts which were 0,7 to' within the area of the local authority on the determining day.

• Passed by the Knesset on the 9th Tevet, 5729 (30th December, 1968) and published in Sefer Ha-Chukkim No. 548 of the 18th Tevet, 5729 (8th January, 1969), p. 34; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 802 of 5729, p. 38. 1) Kovetz Ha-Takkanot No. 2057 of 5727, p. 2607; Sefer Ha-Chukkim No. 518 of 5728, p. 24 t- LSI vol. XXII, p. 25. Passed by the Knesset on the 16th Tevet, 5729 (6th January, 1969) and published in Sefer Ha-Chukkim No. 549 of the 26th Tevet, 5729 (16th January, 1969), p. 36; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 792 of 5728, p. 390. 2) Sefer Ha-Chukkim of 5725, p. 248 — LSI vol. XIX, p. 261; Sefer Ha- Chukkim of 5726, p. 71; LSI vol XX, p. 66.

40 Right to be 13. The right to be included in the supplementary list included in of one of the polling districts in the area of a local supplement• ary list. authority shall vest in every person who makes application to the Minister for inclusion therein and to whom the following applies: (1) His eighteenth birthday is not later than the first day of the register year for which the supplement• ary list is prepared; (2) he is registered in the Population Registry on the determining day as a resident of that local authority; (3) he is not entitled to be included in the Knesset Voters' Register because he is not an Israel national. Applica• 14. (a) An application for inclusion in a supplementary tions for list shall be submitted in accordance with procedure inclusion in supple• prescribed by regulations. An application submitted later mentary list. than the 35th day before the determining day shall not be entertained in respect of the supplementary list of the register year next following the determining day but in respect of the supplementary list of the succeeding register year. (b) A person registered in the Population Registry as a resident of an area designated by an order under section 11B of the Law and Administration Ordinance, 5708- 19481), shall be deemed to have submitted in due time an application for inclusion in the supplementary list of that area for the register year following the coming into force of the order or the coming into force of this Law, which• ever is the later event.

Continuance 15. A person included in the supplementary list of a of inclu• polling district within the area of a local authority for a sion in supplement• particular register year shall also be included in the ary list. supplementary list for each subsequent register year unless one of the following applies to him on the determining day preceding the register year: (1) He has ceased to be a resident of the local authority and notice of the fact has been given under the Population Registry Law, 5725-19652); (2) he has died; (3) the Minister has directed that he shall not be included after he has submitted to the Minister, at the time and in accordance with procedure prescribed by regulations, an application to strike his name off the supplementary list.

1) I.R. of 5708, Suppl. I, No. 2. p. 1 — LSI vol. I, p. 7; Sefer Ha-Chukkim of 5727, p. 74 — LSI vol. XXI, p. 75. 2) Sefer Ha-Chukkim of 5725, p. 270; LSI vol. XIX, p. 288. Exhibition of 16. (a) The Minister shall in every year exhibit the supple• supplementary list of each local authority at the time mentary lists and delivery and place at which the voters' lists under the Knesset thereof. Voters' Register Law, 5719-19591) (hereinafter referred to as "the Register Law") relating to the polling districts in the area of the local authority are exhibited. The notice under section 26 of the Register Law shall also include particulars of the exhibition of the supplementary lists. Where a local authority has no supplementary list, an appropriate notice to such effect shall be exhibited at such place and time as aforesaid. (b) Not later than the 46th day after the determin• ing day, the Minister shall deliver to the council of each local authority a copy of the supplementary lists of the local authority.

Applica• 17. (a) Until the 65th day after the determining day, tions and every person may submit to the Minister an application objections. in writing to correct particulars relating to him and inaccurately entered in a supplementary list, or a reasoned objection in writing to his non-inclusion in a supplement• ary list or to his or another person's improper inclusion in such a list. (b) The procedure for the submission of applica• tions and objections under this section shall be prescribed by regulations.

Decision 18. (a) The Minister shall decide upon applications and on applica• objections submitted under section 17 and shall notify his tions and objections. decision in writing to the applicant or objector and, in the case of an objection affecting another person, also to that other person by the 89th day after the determining day. (b) Not later than the 94th day after the determin• ing, day, the Minister shall deliver to the council a list of the names of the voters whom he has decided to add to supplementary lists in consequence of objections.

Appeal. 19• Whoever has submitted an application or objection and, in the case of an objection affecting another person, also the latter may, until the 99th day after the deter• mining day, appeal to a District Court against the Minis• ter's decision or against non-receipt of notice of the Minister's decision, and every member of the council may appeal as aforesaid against the Minister's decision to add the name of a voter to a supplementary list in consequence of an objection under section 17.

1) Sefer Ha-Chukkim of 5719, p. 24; LSI vol. XIII, p. 21. Venue in 20. The appeal shall be filed in the District Court in appeals. whose area of jurisdiction the area of the local authority is situated. Proof. 21. The onus of proof shall be on the appellant. Every State authority and local authority shall issue free of charge any certificate or confirmation required for the purposes of the appeal.

Composi• 22. The District Court shall hear an appeal under section tion of 19 by a single Judge. The judgment shall be final and court and judgment. non-appealable. It shall be given and served upon the Minister by the 113th day after the determining day. Exemption 23. (a) An appeal under section 19 shall be exempt from fees from court fees and from stamp duty on a power of and taxes. attorney. (b) An advocate appearing on behalf of the appel• lant in an appeal under section 19 may rely on a power of attorney signed by the appellant before one of the follow• ing, who shall have certified the signature of the appel• lant on the face of the power of attorney : (1) a Judge; (2) a member of a religious court; (3) the Attorney-General, the State Attorney, the District Attorney, a Subdistrict Attorney, an Assistant State Attorney, an Assistant District Attorney, an Assistant to the State Attorney or an Assistant to the District Attorney; (4) the head of a local authority or a member of the council of a local authority.

Procedural 23A. The Minister of Justice may make regulations as regulations. to anything relating to the hearing of appeals under section 19, including the filing of appeal, the joinder of parties, the consolidation of appeals and the service of summonses and other documents. No provision of another enactment enabling the enlargement of times for appeal shall apply to the hearing of appeals under section 19.

Provisions 23B. The Minister may, in consultation with the Minister as to of Defence, issue special directions in respect of soldiers soldiers. as to anything relating to the filing of applications and objections under section 17, to the hearing thereof and to the service of decisions under section 18, and the Minister of Justice may, in consultation with the Minister of Defence, issue special directions in respect of soldiers as to anything relating to the filing of appeals under sec• tion 19, to the hearing thereof and to the service of judgments. Directions under this section shall not require publication in Reshumot or any other publication and shall be brought to the knowledge of the soldiers and other persons concerned in the manner prescribed by the Minister in consultation with the Minister of Defence.

23C. Where a person has been included in a supplement• Striking off ary list, and the District Court decides in an appeal under name from supplement• section 35 of the Register Law to include him in the ary list; Knesset Voters' Register, the Minister shall strike his name off the supplementary list. Completion of 23D. By the 127th after the determining day, the supplement• Minister shall rectify and complete the supplementary lists ary lists and notification. in accordance with his decisions under section 18, with judgments under section 22 and with judgments as referred to in section 23C. Every person whose name has been added to a supplementary list under a judgment shall be notified to such effect by the Minister by the 150th day after the deterrnining day. List of 23E. Not later than the 135th day after the determining changes. day, the Minister shall deliver to the council a list of all the changes which have occurred in supplementary lists in consequence of applications, objections and appeals under this Law or in consequence of striking-off under section 23C. Period of 23F. A supplementary list, rectified and completed as validity of aforesaid, shall come into force on the 15th Av following supplement• ary list. the determining day and shall remain in force until the date of the coming into force of the succeeding supple• mentary list. Supplement• 23G. No change shall be made in a supplementary list ary list during the register year for which it was prepared.". not to be altered

Amendment of 3. In section 26 of the principal Law, the following shall be inserted section 26. at the end : "The Minister shall, after consultation as aforesaid, appoint one of the members of the election committee to be the chairman thereof.".

Amendment of 4. In section 32 of the principal Law — section 32. (1) the closing passage of subsection (a), beginning with the words "and suitable representation shall be ensured" shall be replaced by the following closing passage: "and suitable representation on the polling committees as a whole shall be ensured to all the said party groups; and it shall also be ensured that at least one party group from among those not represented on the management committee is represented on each of the polling committees". (2) at the end of subsection (e), there shall be inserted the words "in such a way that suitable representation on the polling committees as a whole is ensured to the party groups represented on the election committee".

44 5. In section 34(a) of the principal Law, the words "one hour after Amendment of the time" shall be replaced by the words "half an horn• after the time", section 34.

6. In section 38 of the principal Law, the words "the one of those Amendment of submitting the list whose signature appears first shall be regarded as the section 38. representative of the list, and the one whose signature appears second shall be regarded as his substitute" shall be replaced by the words "the first candidate on the list of candidates shall be regarded as the repre• sentative of the list and the second as his substitute".

7. The following section shall be inserted after section 38 of the Addition of principal Law : section S8A• "Deposit. 38A. (a) Upon the submission of a list of candidates by a group of voters under section 35(a), the representative of the list or his substitute shall make a deposit with the election officer, in cash or by banker's cheque, of the amount stated in the table hereunder according to the number of residents registered in the Population Registry on the determining day as the residents of the local authority. A certificate from the Minister attesting to that number shall be conclusive evidence of the contents thereof. Number of Residents Amount of Deposit Up to 5,000 500 pounds 5,001 to 25,000 1,000 pounds 25,001 to 100,000 3,000 pounds Over 100,000 4,000 pounds (b) The election officer shall not accept the list of candidates without a deposit as aforesaid. (c) This section shall not apply in the first elec• tions after the establishment of the local authority.".

8. In section 39 of the principal Law, the following subsection shall be Amendment of inserted after subsection (b): section 39. "(bb) For the purposes of subsection (b), the right of a party group or party groups of the Knesset shall prevail over the right of a party group or party groups of the council.".

9. The following section shall be inserted after section 41 of the Addition of principal Law: section 41 A. "Changes >« 41 A. (a) Where the election officer has not approved candidates' a particuiar candidate, and the number of candidates in that list has thereby fallen below one third of the number of the members of the council to be elected, such fact shall not by itself invalidate the list. (b) No candidate shall be replaced or added in a list of candidates after it has been submitted, and no other change shall be made therein.".

45 Amendment of 10. In section 42(a) of the principal Law — section 42. (1) after the words "to the representative of the list and his substitute", there shall be inserted the words "and to the candidate whose approval is refused"; (2) the following shall be inserted at the end : "The appeal shall be filed and heard in the form of an application by way of motion, and no court fees shall be payable in respect thereof.".

Addition of 11. The following section shall be inserted after section 42 of the section 42A. principal Law: "Partial 42A. Where a list of candidates submitted by a group of r tu ^° ^ ^t voters is not finally approved, one fifth of the amount of

o epos!. ^e deposit made upon its submission shall be forfeited to the council's fund, and the remainder shall be returned to the depositor.".

Amendment of 12. In section 48 of the principal Law, the opening passage shall be section 48. replaced by the following opening passage : "Not later than six days before election day, the election officer shall publish on the notice-board and in the main office of the local authority a notice indicating — ".

Amendment of 13. In section 53 of the principal Law, the words "Not later than two section 53. days" shall be replaced by the words "not later than one day".

Amendment of 14. In section 55(a) of the principal Law, the expression "12 midnight" section 55. shall be replaced by the expression "11 p.m.".

Amendment of 15. In section 56 of the principal Law, the words "and voters" shall be section 56, replaced by the words "and, during voting hours only, voters".

Amendment of 16. In section 62(a) of the principal Law, the words "and the counting section 62. shall be continued without intermission until it is completed" shall be inserted at the end.

Addition of 17. The following section shall be inserted after section 70 of the section 70A. principal Law: "Forfeiture 70A. Where a list of candidates submitted by a group of of deposit. voters does not obtain at least one seat, the deposit made upon its submission shall be forfeited to the council's fund.".

Addition of 18. The following section shall be inserted after section 71 of the section 71 A. principal Law: "Return of 71 A. A deposit made upon the submission of a list of deposit. candidates and not forfeited under section 70A shall be returned to the depositor immediately upon publication of the election results in Reshumot".

46 19. In section 73 of the principal Law, the following subsection shall be Amendment of inserted after subsection (d): section 73. "(e) The election officer shall publish in Reshumot a notice of any such change in the election results as has been decided upon by the Court in an election appeal.".

20. In section 86(a) of the principal Law, paragraph (1) shall be replaced Amendment of by the following paragraph : section 86. "(1) a person who knowingly causes a disturbance or interruption in the orderly progress of the elections or the counting of the votes;".

21. For the purposes of elections held before the 15th Av, 5729 (30th Transitional July, 1969), the provisions of the principal Law as in force before the provision, coming into force of this Law shall continue to apply as to everything relating to supplementary lists.

LEVI ESHKOL HATM MOSHE SHAPIRO Prime Minister Minister of the Interior

SHNEUR ZALMAN SHAZAR President of the State

(No. 16)

DAYANIM (AMENDMENT No. 4) LAW, 5729-1969*

1. In section 8(d) of the Dayanim Law, 5715-19551), the following Amendment of shall be inserted at the end: "In a locality where there are two town section 8- rabbis both qualified to be dayanim, both shall act as chief presiding dayanim. If one of them is so qualified, he shall act as chief presiding dayan. If neither of them is so qualified, one of the dayanim shall be appointed chief presiding dayan.".

LEVI ESHKOL ZERACH WARHAFTIO Prime Minister Minister of Religious Affairs

SHNEUR ZALMAN SHAZAR President of the State

* Passed by the Knesset on the 16th Tevet, 5729 (6th January, 1969) and published in Sefer Ha-Chukkim No. 549 of the 26th Tevet, 5729 (16th January, 1969), p. 41; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 793 of 5729, p. 2. 1) Sefer Ha-Chukkim of 5715, p. 68 — LSI vol. IX, p. 74; Sefer Ha-Chukkim of 5719, p. 135 — LSI vol. XIII, p. 145; Sefer Ha-Chukkim of 5724, p. 140 — LSI vol. XVIII, p. 137; Sefer Ha-Chukkim of 5726, p. 18 — LSI vol. XX, p. 13.

47 (No. 17)

LAW AND ADMINISTRATION ORDINANCE (AMENDMENT No. 12) LAW, 5729-1969*

Addition of 1. In the Law and Administration Ordinance, 5708-19481) (hereinafter sections 10A referred to as "the Ordinance"), the following sections shall be inserted and 10B. after section 10:

"Correction 10A. (a) For the purposes of this section, "the Com• of error mittee" means the Knesset Committee which dealt with in text the Law in question or, if that Committee no longer exists, the Committee within whose province that Law falls or, if there is no such Committee, the Committee designated in that behalf by the House Committee. (b) Where an error is contained in the text of any law as passed by the Knesset, and the Committee, upon the proposal of the Minister of Justice, finds that the error is a linguistic-technical one, a lapsus calami, an accidental omission, a typing error, a copying error, or the like, the Knesset may, by resolution, correct the error. (c) Where the resolution correcting the error is passed before the Law is published in Reshumot, the Law shall be published as corrected. (d) Where the resolution correcting the error is passed after the Law is published in Reshumot, the correction shall be published in Reshumot under the signatures of the Chairman of the Knesset and the Minister of Justice, and it shall have effect from the date of its publication unless the resolution prescribes that it shall have effect as from the date of the coming into force of the Law.

Correction 10B. Where a typographical error is contained in the of error in text of any Law as published in Reshumot, as against the published text. text passed by the Knesset or corrected under section 10A, the Minister of Justice shall direct its correction in Reshumot.".

* Passed by the Knesset on the 16th Tevet, 5729 (6th January, 1969) and published in Sefer Ha-Chukkim No. 549 of the 26th Tevet, 5729 (16th January. 1969), p. 41; the Bill and an Explanatory Note were published in Hatzdot Chok No. 773 of 5728, p. 212. 1) I.R. of 5708, Suppl. I, No. 2, pp. 1, 11 and 12 — LSI vol. I, pp. 7, 17 and 18; Sefer Ha-Chukkim of 5709, pp. 2 and 159 — LSI vol. Ill, pp. 4 and 73; Sefer Ha-Chukkim of 5712, pp. 10, 134 and 279 — LSI vol. VI, pp. 7, 39 and 90; Sefer Ha-Chukkim of 5714, p. 126 — LSI vol. VIII,p. l04;SeferHa- Chukkim of 5724, p. 79 — LSI vol. XVIII, p. 67; Sefer Ha-Chukkim of 5727, p. 74 — LSI vol. XXI, p. 75; Sefer Ha-Chukkim of 5728, p. 232 — LSI vol. XXII, p. 265.

48 2. In section 16 of the Ordinance, the following subsection shall be Amendment of inserted after subsection (g) : section 16. "(h) Where an error is contained in a New Version or Consolidated Version, as determined by the Constitution, Legislation and Juridical Committee of the Knesset, the Committee may, upon the proposal of the Minister of Justice, decide upon its correction, and if the text has already been published, the correction shall be published in Reshumot under the signatures of the Minister of Justice and the Chairman of the Committee. Where a typographical error is con• tained in the text published in Reshumot, as against the text deter• mined, or corrected by the Committee, the Minister of Justice shall direct its correction in Reshumot.".

3. Such corrections of errors in any Law, New Version or Consolidated Validation of Version as were published in Reshumot before the coming into force earlier corrections. of this Law shall be deemed to have been validly made.

LEVI ESHKOL YAAKOV S. SHAPIRO Prime Minister Minister of Justice SHNEUR ZALMAN SHAZAR President of the State

(No. 18)

MOTOR VEHICLES INSURANCE (THIRD PARTY RISKS) ORDINANCE (AMENDMENT No. 2) LAW, 5729-1969*

1. In section 4 of the Motor Vehicles Insurance (Third Party Risks) Amendment of Ordinance, 19471) (hereinafter referred to as "the Ordinance"), the section 4 of following shall be added at the end of paragraph (2): "A person disquali• Ordinance. fied by virtue of a conviction under this section or of an order made thereunder for holding or obtaining a driving licence shall, for the purposes of the Traffic Ordinance, be deemed to be disqualified under the provisions of that Ordinance.".

2. In section 6 of the Ordinance, the proviso to subsection (1) shall be Amendment of replaced by the following proviso : section 6 of Ordinance. "Provided that such a policy shall not be required to cover — (1) liability of an employer in respect of the death of or bodily injury to his employee if and as far as such liability is covered under Chapter Three of the National Insurance Law (Con• solidated Version), 5728-19682), or by voluntary insurance; (2) any contractual liability.".

* Passed by the Knesset on the 16th Tevet, 5729 (6th January, 1969) and published in Sefer Ha-Chukkim No. 549 of the 26th Tevet, 5729 (16th January, 1969), p. 43; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 772 of 5728, p. 210. 1) P.G. of 1947, Suppl. I, No. 1568, p. 49 (English Edition). 2) Sefer Ha-Chukkim of 5728, p. 108; LSI vol. XXII, p. 114.

49 Commencement. 3. Section 2 shall come into force on the 13th Shevat, 5729 (1st February, 1969): Provided that in respect of classes of motor vehicles other than a private vehicle within the meaning of the Traffic Ordinance, section 2 shall come into force on the date prescribed by the Minister of Finance by order, but not later than the 28th Cheshvan, 5730 (9th November, 1969).

Repeal. 4. In section 19 of the Motor Vehicles Insurance (Third Party Risks) Ordinance (Amendment) Law, 5728-19671) (hereinafter referred to as "the 5728 Law"), the closing passage, beginning with the words "provided that in respect of classes of motor vehicles" is hereby repealed.

Transitional 5. A policy of insurance issued before the coming into force of section provisions. 2 of this Law and covering liability as referred to in section 6(1) of the Ordinance, as amended by section 4(1) of the 5728 Law, shall be deemed to provide that it covers liability as referred to in section 6(1), as amended by this Law. LEVI ESHKOL ZEEV SHAREF Prime Minister Minister of Finance SHNEUR ZALMAN SHAZAR President of the State

(No. 19)

PASSPORTS (AMENDMENT No. 3) LAW, 5729-1969*

2 Amendment of !. J.n section 4 af the Passports Law, 5712-1952 ), the words "two section 4. years" in subsections (a) and (b) shall be replaced by the words "five years".

Application 2. This Law shall not alter the period of validity of a passport which w' was issued or the period of validity of which was extended before the coming into force of this Law.

LEVI ESHKOL HAIM MOSHE SHAPIRO Prime Minister Minister of the Interior SHNEUR ZALMAN SHAZAR President of the State

1) Sefer Ha-Chukkim of 5728, p. 2; LSI vol. XXII, p. 3. * Passed by the Knesset on the 18th Tevet, 5729 (8th January, 1969) and published in Sefer Ha-Chukkim No. 549 of the 26th Tevet, 5729 (16th January, 1969), p. 44; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 792 of 5728, p. 388. 2) Sefer Ha-Chukkim of 5712, p. 260 — LSI vol. VI, p. 76; Sefer Ha-Chukkim of 5717, p. 142 — LSI vol. XI, p. 152; Sefer Ha-Chukkim of 5726, p. 70 — LSI vol. XX, p. 64.

50 (No. 20)

FIRE-FIGHTING SERVICES (AMENDMENT) LAW, 5729-1969*

1. In section 4 of the Fire-Fighting Services Law, 5719-19591) (here• Amendment of inafter referred to as "the principal Law"), the words "prescribe fire- section 4. fighting arrangements in private institutions and undertakings" in para• graph (4) shall be replaced by the words "prescribe, subject to regulations made by the Minister of the Interior, fire-fighting arrangements in institutions and undertakings, whether public or private, and in high buildings".

2. Section 6 of the principal Law shall be replaced by the following Replacement of sections : section 6 and addition of "Regulations 6. The Minister of the Interior may prescribe by sections 6A-6D. concerning regulations the quantities and kinds of equipment, ap• fire-fighing facilities. pliances and materials for the extinction of fires and of alarm devices and means of communication, (all the aforesaid hereinafter collectively referred to as "fire-fighting facilities"), which shall be provided and kept in proper condition on all immovable property or on particular classes of immovable property, and he may prescribe different quantities and classes for different classes of im• movable property. In the case of immovable property not situated in a built-up residential area of a municipality, a local council or any other inhabited locality (such immov• able property hereinafter referred to as "agricultural land"), the regulations shall be made in consultation with the Minister of Agriculture.

Persons 6A. (a) When regulations under section 6 have been bound to made, every occupier of immovable property and, in the provide fire-fighting case of immovable property other than agricultural land, facilities. also every owner shall provide fire-fighting facilities there• on and shall keep them in proper condition. (b) The obligation imposed by subsection (a) shall begin thirty days after the coming into force of the regulations. Where a person becomes the occupier or owner of any immovable property after the coming into force of the regulations, the obligation shall apply to him thirty days after he becomes such occupier or owner. Power of 6B. (a) Where fire-fighting facilities have not been fire-fighting provided on any immovable property, the fire-fighting authority. authority may in writing require one or several of those

* Passed by the Knesset on the 18th Tevet, 5729 (8th January, 1969) and published in Sefer Ha-Chukkim No. 549 of the 26th Tevet, 5729 (16th January, 1969), p. 44. This Law is based on two Bills which were published, each with an Explanatory Note, in Hatzdot Chok Nos. 755 and 792 of 5728, pp. 100 and 388. 1) Sefer Ha-Chukkim of 5719, p. 199; LSI vol. XIII, p. 215.

31 bound to provide them under section 6A, as it may think fit, to fulfil the obligation in respect of the whole of the immovable property within the time specified in the requisition. (b) Where any person does not comply with a requisition under subsection (a), the fire-fighting authority may, without prejudice to the penalty referred to in section 34 or to any other remedy, provide the fire-fighting facilities and collect from that person all the expenses incurred by it in respect thereof.

Apportionment 6C. (a) Expenses involved in providing fire-fighting of expenses. facilities on immovable property other than agricultural land shall fall as to half thereof on the owner and as to the other half on the occupier, except if a different apportion­ ment has been fixed by agreement between them or if, in the absence of agreement, a Magistrates' Court has fixed a different apportionment for reasons which justify the same and which shall be stated in the judgment. (b) Where several persons are bound to provide fire-fighting facilities on any immovable property and keep them in proper condition, and one of them has fulfilled the obligation in respect of the whole property, the others shall share in his expenses.

Right of 6D. A person appointed for the purposes of this section

entry. jjy a fire-fighting authority may at any reasonable time enter any immovable property situated in the area of that authority, other than private quarters used for residential purposes, in order to examine whether the provisions of this Law and the regulations made there­ under have been complied with or in order to carry out an act under section 6B(b); but he shall not enter as aforesaid before he has presented himself in uniform to the person responsible or appearing to be responsible for the property and has produced his letter of appointment to him if so requested, and he shall not enter any property occupied by the Defence Army of Israel, or by another branch of the Defence Establishment certified by the Minister of Defence, save with the approval of a person empowered in that behalf by the Minister of Defence.".

Amendment of 3. In section 16(c) of the principal Law, the closing passage beginning section 16. ^ wonjs «out Df the War Damage Compensation Tax Fund" shall be replaced by the words "out of the Treasury".

Amendment of section 17 of the principal Law — r ־section 17. 4 In r (1) the marginal note shall be replaced by the marginal note "Allocation from the Treasury" ;

52 (2) subsection (a) shall be replaced by the following subsection: "(a) The Minister of Finance shall out of the Treasury transfer to the Minister of the Interior, in every financial year, an amount equal to half the total amount of the estimated expen• diture approved by the Minister of the Interior for the fire- fighting services of all fire-fighting authorities, including places not situated in the area of a local authority and in which the Minister of the Interior has decided that fire-fighting services shall be maintained.".

5. The following section shall be inserted after section 18 of the Addition of principal Law: section 18 A. "Reduction 18A. The fire-fighting authority may reduce or waive and waiver any fees under this Law, having regard to the material of fees. position of the person liable to them or for some other reason approved by the Minister of the Interior.".

6. In section 34 of the principal Law, before the words "who refuses", Amendment of there shall be inserted the words: "who infringes fire-fighting arrange• section 34. ments prescribed under section 4 or who fails to provide or neglects to maintain fire-fighting facilities properly or".

LEVI ESHKOL HAIM MOSHE SHAPIRO Prime Minister Minister of the Interior SHNEUR ZALMAN SHAZAR President of the State

(No. 21)

KNESSET AND LOCAL AUTHORITIES ELECTIONS (5730) (FINANCING, LIMITATION OF EXPENSES AND AUDIT) LAW, 5727-1969*

1. In this Law — Definitions, "party" means a party named in the First or Second Schedule; "allocation" means an allocation from the Treasury under section 2; "elections" means the elections for the Knesset and the local authorities intended to be held on the 16th Cheshvan, 5730 (28th October, 1969); "election expenses" means expenses for the organisation of activities of the party in the election campaign and expenses for propaganda and information preparatory to the elections, whether oral or witten

* Passed by the Knesset on the 1st Adar, 5729 (19th February, 1969) and published in Sefer Ha-Chukkim No. 550 of the 10th Adar, 5729 (28th February, 1969), p. 48; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 807 of 5729, p. 54.

53 or of any other kind, and includes commitments in respect of expenses as aforesaid; "representatives" means party representatives appointed under section 5.

Allocation and 2. (a) (1) All the parties enumerated in the First Schedule shall be apportionment allocated out of the Treasury an aggregate amount of 14,400,000 thereof. pounds for the financing of election expenses. The apportion• ment of the said amount among those parties shall be as set out in the First Schedule; (2) the party named in the Second Schedule shall be allocated out of the Treasury an amount of 480,000 pounds for the financing of election expenses, (b) A party which does not, either alone or together with another party, submit a candidates' list for the elections to the Seventh Knesset is not entitled to an allocation, and the amounts of the allocations referred to in subsection (a) shall be reduced by the amount intended for it under the First or Second Schedule.

Limitation 3. A party shall not incur election expenses to an amount exceeding a of election total composed to the following two : expenses. (1) the amount of the allocation to which it is entitled under the First or Second Schedule; (2) an additional amount, not exceeding one third of the amount of its allocation, out of its own funds.

Transportation

Appointment of 5. (a) Every party entitled to an allocation shall notify the Chairman represent• of the Knesset through the representative of its Knesset group, not later atives. than thel7th Av, 5729 (1st August, 1969), of the names of its representa• tives empowered to act on its behalf for the purposes of this Law. The notification of the appointment of representatives shall be accompanied by their written consent. (b) The number of representatives shall be not less than two and not more than eight, including at least one who is a Member of the Knesset and at least one whom the party has declared to be familiar with its financial economy and election expenses. (c) A party has the right to replace its representatives, by notice to the Chairman of the Knesset accompanied by the written consent of the new representatives, provided that the latter include one who is a Member of the Knesset and one concerning whom the party has declared as specified in subsection (b).

54 6. Not later than the 27th Elul, 5729 (10th September, 1969), the Deposit 1wit1o f h Treasury shall place at the disposal of the Chairman of the Knesset the ^^J* amounts of the allocations referred to in section 2.

7. The representatives of every party entitled to an allocation shall Conditions of furnish the Chairman of the Knesset with the following : payment of allocation. (1) a confirmation by the Chairman of the Central Election Committee that the party has submitted a candidates' list for the elections to the Seventh Knesset; (2) a declaration signed by the representatives that the party has made all the necessary arrangements to ensure the keeping of proper accounts of the election expenses, in accordance with the directives of the State Comptroller, including the opening of a special bank account for that purpose; the name of the bank and the number of the account shall be indicated in the declaration.

8. When the representatives of a party have furnished the Chairman Advance of the Knesset with the documents referred to in section 7, the Chairman payment. shall transfer to the bank account indicated in the declaration of the representatives an advance payment of an amount equal to 70 per cent of the amount of the allocation due to that party under the First or Second Schedule. The advance payment shall not be attachable.

9. Not later than the 15th Tammuz, 5729 (1st July, 1969), the State Keeping of Comptroller shall issue directives concerning the keeping of accounts and accounts. voucher procedures in connection with the election expenses, and from the 17th Av, 5729 (1st August, 1969), every party entitled to an allocation shall follow those directions and enter all its election expenses, fully and accurately, in a special set of accounts.

10. From the date of publication of this Law in Reshumot to election Opinion as day, inclusive, every party may apply to the Chairman of the Central to nature of expenses. Election Committee, in writing, for an opinion as to whether or not some particular expense is to be regarded as an election expense. The Chairman of the Central Election Committee shall, in consultation with the Vice- chairmen, give the opinion within one week and shall deliver a copy thereof to the Chairman of the Knesset, the State Comptroller and the representatives of all the parties entitled to an allocation.

11. (a) The State Comptroller shall inspect the set of accounts referred Inspection to in section 9 and for that purpose shall have all the powers granted by State him in respect of an inspected body under the State Comptroller Law Comptroller. (Consolidated Version), 5718-19581). (b) The State Comptroller may at any time demand that the representatives shall deliver to him a declaration signed by them con• cerning facts which, in his opinion, are of importance with regard to the character or nature of some particular expense or with regard to the

1) Sefer Ha-Chukkim of 5718, p. 92; LSI vol. XII, p. 107.

55 accuracy or completeness of entries in the accounts of election expenses. A declaration as aforesaid may be made according to the knowledge or the best of the knowledge of the declarants and the Comptroller may, at his discretion, accept it as evidence.

Comptroller's 12. (a) Within six weeks from election day, the representatives shall report. deliver to the State Comptroller their election accounts to the 20th Kislev, 5730 (30th November. 1969), which shall include every election expense the party incurred or became liable to up to that date. (b) Within ten weeks from the day on which he receives the accounts of any party, the Comptroller shall submit to the Chairman of the Knesset a report of the results of the inspection, indicating — (1) whether the party has kept a set of accounts in accordance with his directives; (2) whether according to the accounts, explanations and declarations received by him he has reached the conclusion that the election expenses of the party were within the limits of the amount permitted under section 3.

Payment of 13. (a) Where according to the State Comptroller's report under sec• remainder of tion 12 a party has fulfilled the conditions set out in paragraphs (1) and allocation. (2) of that section, the Chairman of the Knesset shall transfer to its bank account the remaining 30 per cent of the amount of the allocation due to it. This remainder shall not be capable of attachment save for debts arising out of election expenses. (b) Where according to the report a party has not fulfilled the said conditions, it shall not be entitled to the remainder of the allocation, and the Chairman of the Knesset shall return the amount which was intended for it to the Treasury.

Implementa• 14. The Chairman of the Knesset is charged with the implementation tion. of this Law. FIRST SCHEDULE (Sections 1 and 2 (a) (1)) Pounds (Israel Labour Party — United Workers' Party) 7,440,000 Freedom Movement — Israel Liberal Party Bloc () 3,120,000 National Religious Front, Mizrahi — Hapoel Ha-Mizrahi and Independents 1,320,000 Independent Liberal Party 600,000 Tora Judaism — and Religious Independents 480,000 Israel New Communists 360,000 Hamahaneh Hatorati, Poalei Agudat Yisrael and Religious Independents 240,000 Haolam Hazeh —Koah 120,000 Israel Communist Party and Independents 120,000 120,000

56 Cooperation and Brotherhood 120,000 Israel Druze 120,000 Arab-Jewish Brotherhood 120,000 Knesset Member D. Ben-Gurion 120,000 14,400,000 SECOND SCHEDULE (Sections 1 and 2 (a) (2)) Free Centre 480,000

YlGAL ALON Deputy Prime Minister and Minister of Immigrant Absorption Interim Prime Minister SHNEUR ZALMAN SHAZAR President of the State

(No. 22)

ACQUISITION FOR PUBLIC PURPOSES (AMENDMENT OF PROVISIONS) (AMENDMENT) LAW, 5729-1969*

1. In section 1 of the Acquisition for Public Purposes (Amendment of Amendment of Provisions) Law, 5724-19641) (hereinafter referred to as "the principal section 1. Law"), after the words "the Roads (Width and Alignment) Ordinance" in the definition of "Acquisition Law", there shall be inserted the words "the Planning and Building Law, 5725-1965"2).

2. Section 2 of the principal Law shall be replaced by the following Replacement of section: section 2. "Restriction 2. (a) Where a part of any parcel has been acquired by on acquisi• virtue of an Acquisition Law, and thereafter, whether by tion with out com• virtue of the same or another Acquisition Law, an addi• pensation. tional part of that parcel is acquired, then, notwith• standing anything provided in any Acquisition Law, the aggregate area acquired without compensation in all those acquisitions shall not exceed such maximum percentage of the area of the original parcel as is specified in this section, and for any excess, compensation shall be paid under the Acquisition Law by virtue of which the last acquisition was effected.

* Passed by the Knesset on the 21st Adar, 5729 (11th March, 1969) and published in Sefer Ha-Chukkim No. 551 of the 28th Adar, 5729 (18th March, 1969), p. 52; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 801 of 5729, p. 34. 1) Sefer Ha-Chukkim of 5724, p. 122; LSI vol. XVIII, p. 116. 2) Sefer Ha-Chukkim of 5725, p. 307; LSI vol. XIX, p. 330.

57 (b) The maximum percentage for the purposes of this section shall be 40, subject to the provisions of subsec• tion (c), if the acquisitions include an acquisition effected by virtue of the Planning and Building Law, 5725-1965, and 25 in every other case. (c) Where, in the case of any parcel, an acquisition is effected under the Planning and Building Law, 5725- 1965, the maximum percentage in respect of the aggregate of acquisitions, as referred to in subsection (a), by virtue of other Acquisition Laws shall be 25.".

Amendment of 3. The following paragraph shall be inserted at the end of section (3) section 4. of the principal Law: "(5) in the case of acquisition by virtue of the Planning and Building Law, 5725-1965 — the date on which the owner of the parcel is given notice of entry thereupon under section 190(b) of that Law or, where there are several owners, the date on which the last notice as aforesaid is given.".

Amendment of 4. In section 4 of the principal Law, paragraph (1) shall be replaced by section 4. the following paragraph: "(1) an acquisition by virtue of repartition under section 20A of the Town Planning Ordinance, 19361), or Article Seven of Chapter Three of the Planning and Building Law, 5725-1965, shall not be taken into account;".

YIOAL ALON ZEEV SHAREF Deputy Prime Minister and Minister Minister of Finance of Immigrant Absorption Interim Prime Minister

SHNEUR ZALMAN SHAZAR President of the State

(No. 23) WAGE PROTECTION (AMENDMENT No. 6) LAW, 5729-1969*

Amendment of 1. In section 8 of the Wage Protection Law, 5718-19592) (hereinafter section 8. referred to as "the principal Law"), subsection (a) shall be replaced by the following subsections:

1) P.G. of 1936, Suppl. I, No. 589, p. 157 (English Edition). * Passed by the Knesset on the 21st Adar, 5729 (11th March, 1969) and published in Sefer Ha-Chukkim No. 551 of the 28th Adar, 5729 (18th March, 1969), p. 53; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 794 of 5729, p. 4. 2) Sefer Ha-Chukkim of 5718, p. 86 — LSI vol. XII, p. 100; Sefer Ha-Chukkim of 5719, p. 40 — LSI vol. XIII, p. 41; Sefer Ha-Chukkim of 5720, p. 99 — LSI vol. XIV, p. 98; Sefer Ha-Chukkim of 5724, p. 35 — LSI vol. XVIII, p. 34; Sefer Ha-Chukkim of 5725, p. 14 — LSI vol. XIX, p. 10; Sefer Ha- Chukkim of 5728, p. 256 — LSI vol. XXII, p. 293.

58 "(a) The amounts specified hereunder of the monthly wage remain­ ing after deduction of income tax cannot be attached, transferred or charged: (1) In respect of the employee 270 pounds (2) in respect of a spouse supported by the an additional employee 50 pounds (3) in respect of each of the employee's first an additional two children supported by him 25 pounds (4) in respect of each further child supported an additional by him 35 pounds: Provided that where the monthly wage exceeds 700 pounds, the part of the wage which cannot be attached, transferred or charged as aforesaid shall not exceed 75 per cent of the monthly wage, (al) The Minister of Labour may, with the approval of the Finance Committee of the Knesset, vary any of the amounts stated in subsection (a), having regard to fluctuations in wages.".

2. Section 19A of the principal Law shall be re-marked as section 19B Addition of and the following section shall be inserted before it: section 19A. "Debt to 19A. (a) For the purposes of section 19, an amount benefit owed bv an employer to a benefit fund shall be regarded ° . ״ . , ,/ fund deem- , . ' , 1 ed to be as delayed wage u the following two requirements are delayed wage. fulfilled : (1) The rules of the fund provide that even if the employer has not paid to the fund the amounts due from him directly or by way of deduction from the employee's wage, the said amounts shall, for the purposes of safeguarding the employee's rights in the fund, be deemed to have been paid; (2) the amount deducted by the employer is not paid to the fund within thirty days from the day on which the wage from which it is deducted is or would be regarded as delayed, or the amount which the employer is liable to pay otherwise than by way of deduction is not paid within thirty days from the day on which the wage in respect of which the the liability exists is or would be regarded as delayed; in this connection, it is immaterial whether the wage is actually delayed or not. (b) The benefit fund alone is entitled to apply for a payment order under this section, and the order shall only be made in its favour. (c) Notwithstanding anything provided in section 17, wage delay, compensation under this section shall be two per cent per month; a fraction of a month shall be deemed to be a whole month.".

59 Amendment of 3. (a) In section 26 of the principal Law, the words "within twenty- sections 26 one days after the payment of the wage from which it has been deducted" and 27. shall be replaced by the words "within thirty days from the day on which the wage from which it has been deducted would be regarded as delayed". (b) In section 27 of the principal Law, the words "within forty-two days after the payment of the wage for the period to which they relate" shall be replaced by the words "within thirty days from the day on which the wage in respect of which the liability exists is or would be regarded as delayed".

Amendment of 4. The following shall be inserted at the end of section 31 of the section 31. principal Law: "and as to a handling fee and requiring the parties to pay costs, including advocate's fees, in respect of applications for payment orders as to debts to a benefit fund".

Transitional 5. Where any attachment, transfer or charge was imposed on a monthly provision. wage before the coming into force of this Law, the provisions of section 1 shall only apply as from the wage of the month following the month in which this Law comes into force.

YIOAL ALON YOSEF ALMOOI Deputy Prime Minister and Minister Minister of Labour of Immigrant Absorption Interim Prime Minister

SHNEUR ZALMAN SHAZAR President of the State

(No. 24)

HOURS OF WORK AND REST (AMENDMENT) LAW, 5729-1969*

Addition of 1. In the Hours of Work and Rest Law, 5711-19511) (hereinafter sections 9A referred to as the "principal Law"), the following sections shall be inserted and 9B. after section 9 : "Prohibi• 9A. (a) On the prescribed days of rest, within the tion of work meaning of the Law and Administration Ordinance, during 2 weekly rest. 5708-1948 ), the owner of a workshop or industrial under• taking shall not work in his workshop or undertaking and the owner of a shop shall not do business in his shop.

* Passed by the Knesset on the 22nd Adar, 5729 (12th March, 1969) and published in Sefer Ha-Chukkim No. 551 of the 28th Adar, 5729 (18th March, 1969), p. 54; the Bill and an Explanatory Note were published in Hatta'ot Chok No. 696 of 5726, p. 136. 1) Sefer Ha-Chukkim of 5711, p. 204; LSI vol. V, p. 125. 2) I.R. of 5708, No. 2, Suppl. I, pp. 1 and 12; LSI vol. I, pp. 7 and 17.

60 (b) On the aforesaid days of rest, a member of a cooperative society shall not work in a workshop or industrial undertaking of the society; a member of an agricultural cooperative society shall not work in a work• shop or industrial undertaking of the society unless the work is connected with the services necessary for its farm. (c) A non-Jew may, in respect of his workshop, industrial undertaking or shop situated in the area of a local authority whose non-Jewish inhabitants, according to the determination of that authority, are at least 25 per cent of its total population, observe the prohibitions im• posed by this section, at his option, either on the afore• said days of rest or on his own Sabbath and holydays. The same shall apply in a quarter of a local authority if the area and the proportion — not less than 25 per cent — of the non-Jewish inhabitants of that quarter have been determined for this purpose by that authority. (d) The provisions of subsection (c) shall not prevent a person charged under this section from produc• ing evidence that the proportion of non-Jewish inhabi• tants in the area of the local authority or the quarter, as the case may be, is not less than 25 per cent.

Application 9B. The provisions of section 12 shall apply, mutatis mutandis, to the grant of permits for work on days of rest to a person to whom the provisions of section 9A apply.".

2. In section 26 of the principal Law, the following subsection shall be Amendment of inserted after subsection (c): section 26. "(c) A person who contravenes any provision of section 9A shall be liable to a fine of 1,000 pounds.".

3. This Law shall add to, and not derogate from, anything provided Saving of in any other law. laws.

4. Where a permit under section 12 of the principal Law was granted Transitional before the coming into force of this Law, it shall also be regarded as a provisions. permit under section 9B of the principal Law in respect of the workshop, industrial undertaking or shop in question.

YlGAL ALON YOSEF ALMOOI Deputy Prime Minister and Minister Minister of Labour of Immigrant Absorption Interim Prime Minister

SHNEUR ZALMAN SHAZAR President of the State (No. 25)

BANKING ORDINANCE (AMENDMENT No. 9) Law, 5729-1969*

Amendment of 1. In section 2 of the Banking Ordinance, 19411) (hereinafter referred section 2. to as "the Ordinance"), the following definition shall be added at the end : " "the Governor" means the Governor of the Bank of Israel appoint• ed under section 8 of the Bank of Israel Law, 5714-1954"2).

Addition of 2. The following sections shall be inserted after section 2 of the sections 2A and 2B. Ordinance: "Application 2A. The provisions of this Ordinance shall apply to of Ordinance every banking institution as if it were a bank. to banking institutions. Application 2B. (1) The Governor may, with the approval of the of Ordinance Government and the Finance Committee of the Knesset, to financial institutions. direct by order that all or part of the provisions of this Ordinance shall also apply to financial institutions, or to a particular class of financial institutions, as if they were banking institutions. (2) For the purposes of this section, "financial institution" means a company or cooperative society the business or part of the business of which is the receipt of moneys on deposit or the making of loans.".

Amendment of 3. In section 4 of the Ordinance, the following subsections shall be section 4. added after subsection (2): "(3) The Governor may direct any person, after consultation with the Committee and after giving such person an opportunity to state its case, to delete, within such time as the Governor shall prescribe, the word "bank" or any derivative thereof from the name under which it carries on business. (4) The Governor shall not exercise his power under subsection (3) in respect of a person licensed to carry on banking business under section 7 so long as a direction under section 8D or 8N has not been issued in respect of such person.

* Passed by the Knesset on the 28th Adar, 5729 (18th March, 1969) and published in Sefer Ha-Chukkim No. 552 of the 5th Nisan, 5729 (24th March, 1969), p. 58; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 779 of 5728, p. 308. 1) P.G. of 1941, Suppl. I, No. 1134, p. 85 (English Edition); I.R. of 5709, Suppl. I, p. 90 — LSI vol. II, p. 65; Sefer Ha-Chukkim of 5714, p. 88 — LSI vol. VIII, p. 73; Sefer Ha-Chukkim of 5716, p. 2 — LSI vol. X, p. 3; Sefer Ha-Chukkim of 5721, pp. 74, 114 and 172 — LSI vol. XV, pp. 71, 120 and 188; Sefer Ha-Chukkim of 5725, p. 50 — LSI vol. XIX, p. 46; Sefer Ha- Chukkim of 5726, p. 14 — LSI vol. XX, p. 11. 2) Sefer Ha-Chukkim of 5714, p. 192; LSI vol. VIII, p. 163.

62 (5) The Governor shall not exercise his power under subsection (3) in respect of a person being a credit bank, within the meaning of the Credit Banks Ordinance1) unless he is of the opinion that such a person has transacted business in a manner likely to impair its ability to meet its obligations or the orderly conduct of its business. (6) Where a body corporate has not complied with a direction issued to it under subsection (3) and has not chosen another name for itself within the period prescribed by the Governor, the Governor shall choose a name for it and shall notify the appropriate registrar accordingly. The Governor's notification shall be deemed to be a notification by the body corporate of the change of its name, duly resolved upon and delivered, and the provisions of law relating to changes of name shall apply to it mutatis mutandis.".

4. The following section shall be inserted after section 4 of the Addition of Ordinance : section 4A. "Names likely 4A. (a) Where a person not licensed to carry on bank­ to mislead. ing business carries on business under a name not con­ taining the word "bank" or any derivative thereof, but suggesting that such person carries on banking business, the Governor may, in addition to his powers under section

after consultation with the Committee and after giving 4־ such person an opportunity to state his case, direct that within a time, not less than 28 days, prescribed by the Governor such person shall delete from the name under which he carries on business any word or other expression which suggests that he carries on banking business. (b) A direction under subsection (a) shall be deemed to be a direction under section 4(3), and a person who fails to comply therewith shall be deemed to be a person who without permission continues to use the word "bank" as part of his name.".

5. Section 5 of the Ordinance shall be replaced by the following Replacement of section: section 5. "The Exam­ 5. (a) The Governor may appoint an Examiner of iner of Banks (hereinafter referred to as "the Examiner"), who Banks and his powers. upon appointment shall be an employee of the Bank of Israel and be charged with the inspection and general supervision of every bank to which this Ordinance applies; he and persons acting on his behalf shall have power to require every bank to give information and to disclose books, accounts and documents. (b) Any director or manager, or any other person employed by a bank, who refuses to give information, or to disclose any book, account or document, required of him

1) Laws of Palestine vol. I, cap. 29, p. 407 (English Edition).

63 under subsection (a) shall be liable to imprisonment for a term of one year or to a fine of 10,000 pounds. (c) The Minister of Police may empower any employee of the Bank of Israel empowered under subsec­ tion (a) to act on behalf of the Examiner to carry out investigations of offences under this Ordinance or under the Bank of Israel Law, 5714-1954, or offences relating to assets of the customers of a bank. An employee empow­ ered as aforesaid shall have all the powers vested in a commissioned officer of police of or above the rank of inspector under the Criminal Procedure (Evidence) Ordinance, and the provisions of that Ordinance shall apply to such investigations as aforesaid. (d) The Governor may assume any power vested in the Examiner.".

Amendment of 6. In section 6 of the Ordinance, the following subsections shall be :(inserted after subsection (2 ׳ .lection 6 "(3) One of the members of the Committee shall be a person appointed by the Minister of Finance. (4) The Committee may appoint from among its members subcom­ mittees of one or more members, prescribe their functions and delegate powers to them. The Committee member under sub­ section (3) shall, by virtue of his appointment, be a member of every subcommittee appointed under this subsection. (5) The proceedings of the Committee and of every subcommittee thereof shall be secret, and no person shall without the approval of the Governor divulge any information regarding them.".

Replacement of 7. Section 8 of the Ordinance shall be replaced by the following section 8. section: "Credit to 8. (a) Where the Governor is of the opinion that in ensure sta­ order to ensure its stability a bank is in need of additional bility of bank. monetary resources, the Bank of Israel may provide moneys to it by the discount of bills of exchange, promis­ sory notes or other negotiable instruments or by loans upon promissory notes secured to the satisfaction of the Governor. (b) Credit under subsection (a) shall be on such conditions as the Governnor may deem fit, and he shall prescribe the security to be given by the recipient of the credit. (c) The power of the Governor under subsection (a) shall not derogate from his power under sections 42 and 44 of the Bank of Israel Law, 5714-1954.".

Addition of 8. The following sections shall be inserted after section 8 of the lections 8A to8N. Ordinance:

64 "Notice of 8A. (a) If the Examiner is of the opinion that a defects to particular bank has transacted business in a manner likely bank. to impair its ability to meet its obligations or the proper conduct of its business, he shall send it a written notice specifying the defects, demanding that they be rectified, or their adverse consequences prevented, within a period stated in the notice and shall give it an opportunity to submit, within the same or a shorter period, as may be stated in the notice, its observations and objections con• cerning the defects and the demand for their rectification. (b) Where a bank has submitted observations and objections as referred to in subsection (a), the Examiner shall decide upon them as soon as possible ofter receiving them and shall notify the bank of his decision, and if he demands the rectification of the defects or the prevention of their adverse consequences, he shall prescribe the period within which the bank shall fulfil the demand.

"Power of 8B. (a) If the Examiner is of the opinion that the Examiner as whole or part of a debt due to a bank is a bad debt or to determining bad debts. that any property of a bank is entered in its books at an amount which exceeds its value at the time upon a sale by a willing seller to a willing purchaser, he may direct the bank to allocate the amount necessary under the circumstances to an appropriate fund. (b) A direction under subsection (a) shall be deemed to be a notice under section 8A. Measures to 8C. (a) Where the Examiner, upon the expiration of prevent the period stated in a notice under section 8A, is of the adverse consequences. opinion that the bank has not rectified the defects notified to it under that section or has not prevented their adverse consequences, or where, after giving the bank an oppor• tunity to voice or submit its observations and objections, he is of the opinion that measures should be taken to prevent the bank from being unable to meet its obligations or from harming its customers or persons having rights in it, he may, after consultation with the Committee — (1) direct the bank to refrain from classes of acts specified in the direction, other than the fulfilment of obligations; (2) prohibit the distribution of dividends or profits to the shareholders of the bank or the granting of bonuses to its directors and managers and persons empowered to sign on its behalf; (3) suspend or restrict the power of a direc• tor,, manager or person empowered to sign. (b) A direction under this section shall not be published in Reshumot, and the plea shall not be heard

65 that an act done in good faith with a person not empow• ered to do it, in contravention of such a direction, is void by reason only that it was done in contravention of the direction. Powers to 8D. (a) If the Governor, after consultation with the safeguard stability of Examiner, is of the opinion that a particular bank is bank. unable to meet its obligations or that, because it has con• ducted its business in a manner deviating from sound banking practice, it is unable to return an asset deposited with it or that any of its directors or managers have acted in a manner likely to impair the proper conduct of its affairs, he may, after giving the bank an opportunity appropriate under the circumstances to voice or submit its arguments and after consultation with the Committee, issue to the bank any of the directions referred to in section 8C(a), and he may with the approval of the Government — (1) suspend a director or manager of the bank for a period not exceeding three months; (2) appoint an administrator to manage the bank as provided in section 8F; (3) appoint a special examiner of the bank to supervise its management as provided in sec• tion 8G; (4) appoint a management committee for the bank to advise the administrator. (b) An appointment as referred to in paragraph (2) or (3) of subsection (a) may be given also to a State employee or an employee of the Bank of Israel. (c) Where the Governor is of the opinion that the circumstances of the case and the public interest require that any act under subsection (a) be done without delay, he may do such act without having consulted the Committee and without having given the bank an op• portunity to submit or voice its arguments, provided that he hears the bank as soon as possible after having acted under subsection (a) and brings the matter before the Committee. (d) For the purposes of subsections (a) and (c), "the Committee" means a subcommittee of not more than five members, appointed by the Committee from among its members and not including a director or a manager or other employee of a banking institution. (e) Where a director or manager is validly dis• missed before the expiration of his period of suspension under subsection (a)(1), he shall not be entitled to salary for the said period of suspension, nor to any compensation in respect of that suspension.

66 ׳ (f) The fact of a suspension under subsection (a) (1) by the Governor and the fact of the appointment of an examiner under subsection (a)(3) shall not be published in Reshumot, and the plea shall not be heard that an act done in good faith with a person not empowered to do it, or in contravention of a direction issued to the bank, is void by reason only of its having been done by such a person or in contravention of such a direction.

Offences 8E. (a) A bank which contravenes any direction issued against to it by the Examiner under section 8C or issued to it by directions under sections the Governor under the said section or by virtue of his 8C and 8D. power under section 8D(a) shall be liable to a fine of 100,000 pounds. (b) A person who acts as a director, manager, or person empowered to sign notwithstanding that his power has been suspended or restricted or during his suspension from office shall be liable to imprisonment for a term of four years or to a fine of 100,000 pounds. (c) A person empowered to sign on behalf of the bank who actually participates in the commission of an offence under subsection (a) shall be liable to imprison­ ment for a term of three years or to a fine of 50,000 pounds. (d) A person who at the time of the commission of an offence under subsection (a) is an active director or a manager or duly empowered representative or the chief or sole accountant of the bank shall be liable to imprisonment for a term of three years or to a fine of 50,000 pounds unless he proves — (1) that the offence was committed without his knowledge and that he was not in virtue of his office required to know of its commis­ sion; or (2) that he took all reasonable steps to ensure compliance with the directions issued. Powers of 8F. (a) An administrator appointed under section 8D administrator. (a)(2) shall manage the bank in accordance with directions he receives from the Governor or, if the Governor has empowered the Examiner of Banks to issue directions, from the Examiner of Banks. (b) An administrator shall have the status of a manager of the bank, and in addition, every manager who has not been suspended, and every employee of the bank, shall comply with his directions. (c) Besides as provided in subsection (a) and (b), an administrator shall carry out the functions of the board of directors and of its committees, and he shall,

67 subject to the provisions of section 8H(e), have all the powers conferred and functions imposed on the board of directors and its members by the memorandum of associa• tion and regulations of the bank. (d) The bank shall pay the administrator a salary, as the Governor may prescribe.

Special 8G. (a) A special examiner appointed under section 8D (a) (3) shall supervise the activities of the board of directors of the bank and the management of its business in accordance with directions he receives from the Gover• nor and, if the Governor has empowered the Examiner of Banks to issue directions, from the Examiner of Banks. (b) The Governor may permit the special exam• iner to employ other persons in carrying out his func• tions.

Management 8H. (a) A management committee appointed for a committee. bank under section 8D(a)(4) shall advise the administra• tor in the discharge of his functions under section 8(f). (b) So long as the management committee carries out its functions, the board of directors and its members shall not carry out their functions or exercise their powers. (c) The administrator shall be the chairman of the management committee. (d) The bank- shall pay the members of the management committee a salary of an amount prescribed by the Governor. (e) The management committee shall approve the balance-sheet of the bank as if it were a general meeting and shall appoint an auditor for the bank; but this shall not derogate from the duty to call a general meeting.

Giving 81. (a) Where a direction under 8D has been issued, information. every director or manager of the bank, whether or not a suspension direction has been issued in his regard, and every other person employed at the bank, shall, on the demand of the Governor, the administrator, the special examiner or a person empowered by one of them in that behalf, furnish him or his agent with any such information or with any such book, certificate or other document as in the opinion of the person making the demand is calculated to ensure or facilitate the carrying out of a direction under section 8D. (b) A person who does not comply with a demand issued to him under subsection (a) shall be liable to imprisonment for a term of two years or to a fine of 10,000 pounds.

68 Discon• 8J. (a) The administrator may, with the approval of tinuance of the Governor, direct that within a period not exceeding discharge of liabilities. ten days from the date of issue of a direction under section 8D(a)(2) the bank shall not discharge its liabilities which fall or fell due during or before that period. (b) The Governor may extend the period referred to in subsection (a) by ten additional days if he has given notice under section 8N of his intention to cancel the licence of the bank and the period during which its directors and managers may state their case has not yet passed or the Court has not yet made a winding-up order or receivership order in respect of the bank. (c) The administrator shall bring to the notice of the public any direction issued under subsection (a) or (d) as soon as possible after its issue. (d) The bank, the administrator or the Governor shall bear no responsibility for the issue of a direction under subsection (a) or for the non-discharge of a liability by virtue of such a direction.

Power to 8K. (a) The Governor may, with the approval of the guarantee. Government, notify in Reshumot that the Bank of Israel, or another bank which has agreed thereto and which the Governor has empowered in that behalf, will guarantee — (1) deposits made with a bank in respect of which a direction has been issued under section 8D, whether to the full amount of the deposits or up a specific amount per deposit in prescrib• ed classes of deposits; (2) other classes of liabilities of a bank as refer• red to in paragraph (1), wholly or in part, provided that — (a) he considers that the public interest so requires; (b) a guarantee under this section for the whole of the liabilities of a bank shall not be given unless in the opinion of the Gover• nor there is a reasonable prospect that such . a guarantee will enable the bank to continue the orderly conduct of business. (b) A guarantee under subsection (a) may be for an unlimited time, subject to conditions or unconditional, as may be specified in the notice.

(c) When a notice as aforesaid has been published) the guarantee shall be valid in accordance with the con• tents of the notice even if the debtor bank has not con• sented to the giving of the guarantee, and the guarantor

69 bank may at any time recover from the debtor bank any amount paid under the guarantee. (d) The debtor bank may, notwithstanding any stipulation to the contrary, bind itself vis-a-vis the guarantor bank in respect of a guarantee given under subsection (a) and of its terms. (e) Where the Governor, with the approval of the Government, sees fit to cancel a guarantee given under subsection (a), he shall give notice of the cancellation and of the date thereof, which shall not be less than ninety days from the date of publication of the notice, in Reshu- mot and at least two daily newspapers, and from that date onwards, no person shall be entitled to claim from the guarantor bank the discharge of a liability: Provided that where a person is entitled to have a liability of the debtor bank discharged to him at a date later than the date of cancellation and that liability existed at the time the guarantee was in force, he shall be entitled to recover from the guarantor bank until the expiration of thirty days from the day fixed for the discharge of the liability, and if the guarantor bank pays, the provisions of subsec• tion (c) shall apply. (f) The Governor shall not cancel a guarantee given by another bank save with the consent of that bank. (g) A guarantee under this section shall be treated as a guarantee given under the Guarantee Law, 5727- 1967.

Bar to wind• 8L. (a) Where an administrator has issued a direction ing-up and under section 8J, a Court shall not make a winding-up appointment of receiver. order or receivership order for the bank in respect of which the direction was issued, and the bank or any meeting of shareholders thereof or of the holders of any other rights therein shall not pass a resolution for the voluntary winding-up thereof; and no receiver shall be appointed therefor, whether on behalf of the holders of debentures or on behalf of any other person, and no attachment shall be imposed on the property thereof or on assets thereof in the hands of any other person, and no other execution proceedings shall be commenced or con• tinued against it, so long as the direction under section 8J is in force, save upon an application on behalf of the Attorney-General or with his written consent.

(b) Where an administrator has been appointed under section 8D(a)(2), the Court shall not, so long as the appointment of the administrator is in force, make a winding-up order or receivership order for the bank upon the application of one of its shareholders, and the bank

70 or any meeting of its shareholders or of the holders of other rights therein shall not pass a resolution for the voluntary winding-up thereof.

Restriction 8M. A resolution of a meeting of the shareholders of as to resolu• the bank, or of the holders of other rights therein, which tions of shareholders' is repugnant to the provisions of or to any act done or meeting. direction issued under section 8C to 8K shall be of no effect.

Cancellation 8N. (a) Where the Governor is of the opinion that a of licence bank is unable to meet its obligations or to conduct its of bank. business properly or that the public interest so requires, he may, after consultation with the Committee and with the approval of the Government, by order, withdraw the licence of that bank as from the date prescribed in the order. (b) The Governor shall not exercise his power under subsection (a) until he has given the bank an opportunity appropriate under the circumstances to state its case. (c) If an administrator has been appointed for the bank, the Governor shall send to the persons who im• mediately before the appointment of the administrator were the directors and managers of the bank a notice of his intention to make the order and of his reasons and shall give them an opportunity appropriate under the circumstances to state their arguments and objections. (d) An order under subsection (a) shall be deemed to be a prohibition under section 4. (e) An order withdrawing the licence of a bank shall not affect the appointment of an administrator under section 8D. (f) Before making an order under subsection (a), the Governor shall send a notice of his intention to do so to the Attorney-General, and he shall not issue the order until the Attorney-General has notified him whether or not he intends to apply for the winding-up of the bank. (g) A company, or a company being wound up, whose licence to carry on banking business has been withdrawn under this section shall be under the supervi• sion of the Examiner, as if it were a bank, for one year from the date of withdrawal of the licence. (h) For the purposes of subsection (a), "the Com• mittee" means a subcommittee of not more than five members appointed by the Committee from among its members and not including a director or a manager or other employee of a banking institution.".

71 Addition of 9. The following sections shall be inserted after section 14A of the sections 14B-14D. Ordinance:

"Offences 14B. (a) A director or manager of a bank who know• committed by ingly transacts business of the bank in a manner impairing directors or managers of its ability to meet its obligations shall be liable to imprison• a bank. ment for a term of four years or to a fine of 100,000 pounds. (b) A director or manager of a bank who know• ingly transacts business of the bank in a manner impairing the proper conduct of its business shall be liable to imprisonment for a term of one year or to a fine of 20,000 pounds. Offences in 14C. A bank which contravenes the provisions of the respect of Companies Ordinance relating to the keeping of books entries in books. and registers by a company shall be liable to a fine of 100,000 pounds, and every person empowered to sign who actually takes part in the commission of the offence and every person who is at the time a director or manager or the chief or sole accountant of the bank shall be liable to imprisonment for a term of two years or to a fine of 25,000 pounds unless he proves — (1) that the offence was committed without his knowledge and that he was not in virtue of his office required to know of its commission; or (2) that he took all reasonable steps to ensure compliance with the said provisions.

Guarantee > 14D. (a) For the purposes of this section — of bill-broking. "bill" means a bill of exchange or promissory note within the meaning of the Bills of Exchange Ordinance; "subsidiary" has the same meaning as in the Securities Ordinance, 5728-19681), but does not include a subsidiary which is a banking institution. (b) A bank which brokers a bill between a seller and a purchaser or sells a bill made by another person shall be a guarantor vis-&-vis the purchaser for the. pay• ment of the bill until the expiration of twelve months from the due date of payment thereof, unless the bill is trans• ferred from the purchaser otherwise than by operation of law; this provision shall be in addition to, and not in derogation of, any duty under any other law, and a guarantee under this section shall always be regarded as a guarantee given as security for a credit, as dealt with by section 14A(a)(l).

1) Sefer Ha-Chukkim of 5728, p. 234 —•LSI vol. XXII, p. 266.

72 (c) Where a bank has paid a bill under the provi• sions of subsection (b), then — (1) if the bank was liable for payment by reason of its having brokered the bill between a seller and a purchaser, it shall be entitled to resort to and recover from the seller and all the parties liable under the bill to the seller; (2) if the bank was liable for payment by reason of its having sold a bill held by it, it shall have all the rights it had against all the parties to the bill before selling it. (d) In a claim against a bank under subsection (b), the bank shall be debarred from pleading that it did not broker or did not sell the bill if it is proved — (1) that the moneys used for the purchase of the bill were delivered by the purchaser to the bank or a subsidiary in order that it might effect the purchase or some other investment; or (2) that the moneys referred to in para• graph (1) were delivered by the purchaser at the offices of the bank to an official of the bank or to another person under circumstances justifying the assumption that he was acting as an official of the bank within the scope of his functions at the bank. (e) The provisions of subsections (d) and (g) shall not apply if the money was delivered outside Israel to a subsidiary conducting its business abroad, for the purpose of purchasing a bill the place of payment of which is not in Israel. (f) The provisions of this section shall not apply to a bill of the State or the Jewish Agency or a bill made by a national institution designated by the Governor with the approval of the Finance Committee of the Knesset. (g) This section shall apply notwithstanding any agreement providing otherwise, unless the agreement was made in writing and the purchaser of the bill is a bank or some other purchaser approved by the Examiner for this purpose either generally or in respect of a particular case.

Restriction 14E. (a) A bank shall not without advance permission on acquisition from the Governor acquire for itself, whether directly or of rights in other bank. indirectly, more than one quarter of the share capital or other rights in a body corporate which is a bank or which, directly or indirectly, has rights exceeding one quarter of the share capital or other rights in another bank, and a

73 bank shall not, whether directly or indirectly, acquire for itself other rights conferring power on it to appoint more than one quarter of the directors of another bank or to vote at a general meeting of another bank with a propor• tion of votes exceeding one quarter of the total of votes at that meeting or to participate in the capital of another bank upon its winding-up to an extent exceeding one quarter of that capital. (b) Where a bank has acquired shares or other rights in excess of the extent prescribed in subsection (a), it shall notify the Governor to such effect within seven days from the day on which it first acquired a right as aforesaid. (c) Where a bank does not make notification as provided in subsection (b), it shall be liable to a fine of 100,000 pounds, and every person who was at the time an active director or a manager shall be liable to a fine of 50,000 pounds unless he proves — (1) that the offence was committed with• out his knowledge; or (2) that he took all appropriate steps to ensure compliance with the provisions of this section. (d) Where notification has been made as provid• ed in subsection (b) or where, without notification having been made, the Governor has learnt that a bank has, without his prior approval, acquired shares or other rights in excess of the extent prescribed in subsection (a), the Governor may, at his absolute discretion, direct the bank to sell, within a period prescribed by him in advance, what it has acquired as aforesaid; and if the bank does not sell it within the said period, the Governor may sell the same. So long as the shares or other rights have not been sold, the bank shall not exercise any right or power arising therefrom, except the right to receive profits from dividends.".

Addition of 10. The following sections shall be inserted after section 15 of the sections 15A-15C. Ordinance: "Secrecy. 15A. (a) A person shall not disclose any information delivered to him or show any document submitted to him under this Ordinance: Provided that it shall be lawful to disclose information if the Governor deems it necessary so to do for the purposes of a criminal charge or if the information or document was received from a bank and that bank consents to its disclosure. (b) For the purposes of the disclosure of docu• ments and information received under this Ordinance to

74 the Court, the Bank of Israel and the Examiner and his employees shall have the status of the State and its employees. (c) A person who contravenes this section or the provision of section 6(5) shall be liable to imprisonment for a term of one year or to a fine of 10,000 pounds.

Application 15B. In the case of a cooperative society which is a of provisions bank, the provisions of this Ordinance shall apply mutatis to cooperative societies. mutandis, and in particular — (1) any reference to a board of directors shall be deemed to be a reference to a committee, within the meaning of the Cooperative Societies Ordi• nance ; (2) any reference to a director, manager, person having power to sign or accountant shall be deemed to be a reference to an officer, within the meaning of the Cooperative Societies Ordinance; (3) any reference in section 14E to share capital shall be deemed to be a reference to the share capital of the society or to the extent of participa• tion in the capital of the society.

Implementa• 15C. The Minister of Finance is charged with the imple• tion. mentation of this Ordinance.".

11. Wherever in the Ordinance — except in section 28, 8D or 8K — Transfer of reference is made to the Government, whether explicitly or by virtue of powers, section 14(a) of the Law and Administration Ordinance, 5708-1948, such reference shall be deemed to be a reference to the Governor instead of to the Governmnt.

12. Section 69 of the Bank of Israel Law, 5714-1954, and the closing Repeal of certaii passage of section 70 of that Law, beginning with the words "and if the provisions of Government has delegated", are hereby repealed. ^ank oi Israel

13. For the removal of doubt it is hereby declared that liability under Commencement section 14D of the Ordinance shall only apply in respect of a bill sold of liability. or brokered by a bank after the coming into force of this Law.

GOLDAMEIR ZEEV SHAREF Prime Minister Minister of Finance SHNEUR ZALMAN SHAZAR President of the State

75 (No. 26) LABOUR COURTS LAW, 5729-1969*

Labour Courts. 1. There shall be Labour Courts (hereinafter referred to as "the Courts); the Courts shall be of two instances: Regional Courts and a National Court.

Judges and 2. Judges and representatives of the public shall be appointed to the representatives Courts. of the public. Qualifications 3. A person qualified to be appointed a Judge of a District Court under for being a the Judges Law, 5713-19531) (hereinafter referred to as "the Judges Judge. Law") shall be qualified to be appointed a Judge of a Court (hereinafter referred to as a "Judge").

Appointment 4. (a) Chapter Two of the Judges Law, except sections 8 to 10, shall of Judges. apply to the appointment of a Judge : Provided that the members of the Government on the Appointments Committee shall be the Minister of Justice and the Minister of Labour. (b) If the Minister of Justice and the Minister of Labour deem it necessary that one of the Judges of the Law Courts shall serve as a Judge of a Court for a specific period, they shall notify the President of the Supreme Court to such effect, and he may, with the consent of the appointee, appoint one of the Judges of the Supreme Court or one of the Judges of a District Court to be a Judge of a Court for that period. A Judge appointed under this subsection who has commenced a hearing shall be competent to complete it even after the period of his appointment has expired.

President and 5. The National Court shall have a President and a Deputy President. Deputy They shall be appointed in the manner prescribed for the appointment President of National Court. of a Judge.

Chief Judge. 6. Where a Regional Court has more than one Judge, the President of the National Court shall, with the consent of the Minister of Justice and the Minister of Labour, appoint one Judge to be the Chief Judge.

Acting Judge. 7. The Minister of Justice may, in consultation with the Minister of Labour and the President of the National Court and with the consent of the appointee, appoint a Judge of the National Court to be the Acting Chief Judge or an Acting Judge of a Regional Court and appoint a Judge of a Regional Court to be an Acting Judge of the National Court. Service, whether continuous or intermittent, under an acting appointment shall not exceed one year in three years; but where a Judge serving under

* Passed by the Knesset on the 28th Adar, 5729 (18th March, 1969) and published in Sefer Ha-Chukkim No. 553 of the 8th Nisan, 5729 (27th March, 1969), p. 70; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 748 of 5728, p. 15. 1) Sefer Ha-Chukkim of 5713, p. 149; LSI vol. VII, p. 124.

76 an acting appointment has commenced a hearing, he shall be competent to complete it even after the period of his appointment has expired. 8. Chapters Three, Four and Five of the Judges Law, except sections Status of 19, 27, 28, 29 and 30, shall apply to the tenure, status, conditions of Judges of Courts. service and disciplinary jurisdiction of and over Judges: Provided that the power of the President of the Supreme Court under section 20 of the Judges Law shall vest in the President of the National Court.

9. A Judge shall not be a member of the Knesset or of the council of a Restrictions local authority or of any elected body of an employees' or employers' as to holding other offices. organisation or a member of the management of such an organisation and shall not be a candidate for membership as aforesaid; he may, however, with the consent of the Ministers of Justice and Labour, tem• porarily agree to carry out another function on behalf of the State, or may carry out some other public function, if in his opinion and in the opinion of the said Ministers and the President of the National Court this does not conflict with his status as a Judge.

10. The representatives of the public on the Courts shall be representa• Representatives tives of employees and employers appointed by the Minister of Justice of the public. and the Minister of Labour after consultation with the employees' organisation representing the greatest number of employees in the State and with national organisations of employers which, in the opinion of the Ministers, are representative and interested. The representatives of the public on the National Court shall — (1) possess experience in some assignment or activity connected with labour relations; or (2) possess teaching or research experience in law, economics, labour relations or public administration; or (3) be members or entitled to be members of the Chamber of Advocates in Israel and have been engaged, continuously or inter• mittently, in Israel or abroad, for at least five years in the profes• sion of advocacy or in a legal function — in the service of the State of Israel or some other service — approved by the Minister of Justice for the purposes of section 2 (2)(b) of the Judges Law.

11. The appointment of a representative of the public shall be for three Period of tenure of years, but he may be reappointed. representatives of the public. 12. The appointment of a representative of the public which has been Publication published in Reshumot shall not be disputed. of appointment.

13. A representative of the public may resign his office by written notice Resignation of to the Minister of Justice. His tenure shall cease upon the expiration of representative of the public. thirty days from the submission of the letter of resignation unless the Minister of Justice has agreed to an earlier date.

14. A representative of the .public who has commenced a hearing shall Completion complete it even if his period of tenure has expired, unless he has been of hearing. removed from office under section 15.

77 Removal of 15. (a) The Minister of Justice may, after consultation with the representative Minister of Labour and the President of the National Court, remove a of the public from, office. representative of the public from office if he is satisfied that the same has conducted himself in a manner unbecoming his office as a representative of the public on a Court. (b) Prior to consultation under subsection (a), the Minister of Justice• shall give the member of the public an opportunity to state his case.

Independence of 16. (a) A representative of the public shall, in judicial matters, be representative subject to no authority other than that of the law. of the public. (b) In exercising his functions as a member of the Court, a repre• sentative of the public shall act in accordance with his conscience and shall not regard himself as owing allegiance to the organisation in con• sultation with which he was appointed or to the section of the public which he represents.

Appointment of 17. (a) The President of the National Court may, after consultation Registrar. with the Minister of Labour and with the approval of the Minister of Justice, appoint a person qualified to be appointed a Judge of a Magistrates' Court to be the Registrar of a Court. (b) The appointment of a Registrar which has been published in Reshumot shall not be disputed.

Composition 18. (a) A Regional Court shall hear cases by a bench of three, viz. a of Regional Court. Judge, who shall preside, and two representatives of the public, one from among the representatives of the employees and the other from among the representatives of the employers. (b) Notwithstanding the provisions of subsection (a), a Judge may sit alone, if, on the application of one of the parties, the person selecting the bench so decides by reasoned decision. (c) The decision concerning the composition of the Court shall be given before the commencement of the hearing and shall be final. (d) In cases tried by a bench of three, the Judge alone shall be competent — (1) to examine whether the pleadings have been properly drawn up; (2) to permit or direct an amendment of the pleadings; (3) to draw up a list of the points at issue; (4) to prescribe the stages of the proceedings in the action, and the order in which questions of fact or law shall be con• sidered, as well as the matters to be determined; (5) to issue any procedural directions calculated to simplify or facilitate the proceedings.

Bench of 19. A bench of a Regional Court shall be selected by the Judge of that Regional Court. Court or, where there is more than one Judge, by the Chief Judge, and

78 it may be selected for a specific period or for the hearing of a particular matter or for the hearing of matters pertaining to a particular branch of employment or a particular trade. Where a bench selected for a specific period has commenced a hearing, it shall be competent to complete it even after the expiration of that period.

20. (a) The National Court shall — Composition of National (1) hear matters assigned to it by section 25 (1) by a bench Court. of seven, being three Judges, two employees' representatives and two employers' representatives; (2) hear an appeal against a judgment of a Regional Court under section 24(b) by a bench of three as referred to in section 26(b); (3) hear other matters by a bench of five, being three Judges, one employees' representative and one employers' representa• tive, unless the President of the Court, before the commence• ment of the hearing, decides upon a bench of seven, whether on the application of a party or of his own motion, after find• ing that the matter involves a general question of economics or labour relations; such a decision shall be final. (b) In the National Court, the Presiding Judge or a Judge ap• pointed by him in that behalf shall have the powers vested in a Judge of a Regional Court under section 18(d).

21. The bench of the National Court shall be selected by the President Bench of National of the Court. If the President of the Court is himself sitting, he shall be Court. the Presiding Judge. If the President is not sitting, the Deputy President shall be the Presiding Judge. If neither the President nor the Deputy- President is sitting, the Judge with the greatest length of service shall be the Presiding Judge, and in the case of Judges with equal length of service, the oldest of them.

22. (a) If a representative of the public, though summoned, does not Absence of attend, the Presiding Judge may, if in his opinion there are no reasonable representative grounds for his absence, hold the hearing without him : Provided that in of the public. the case of a bench of three or five one representative of the pulic, and in the case of a bench of seven two representatives of the public, shall always be present. (b) If the bench is left with an even number of members and the votes are evenly divided, the Presiding Judge shall have a casting vote.

23. The Minister of Justice shall, after consultation with the Minister Place of of Labour, by order, establish Regional Courts and prescribe their places sitting and area of of sitting and areas of jurisdiction and the number of Judges of each. jurisdiction. Sections 12 and 14 of the Courts Law, 5717-19571), shall apply mutatis mutandis to a Regional Court.

1) Sefer Ha-Chukkim of 5717, p. 148; LSI vol. XI, p. 157.

79 Jurisdiction of 24. (a) A Regional Court shall have exclusive power to hear — Regional Court. (1) actions between an employee and an employer which arise out of the employee-employer relationship, including the question of the existence of an employee-employer relationship, but not including actions arising out of the Civil Wrongs Ordinance, 19441); (2) a dispute between the parties to a special collective agreement, within the meaning of the Collective Agreements Law, 5717-1957*), concerning the existence, application, interpretation, implementation or infringement of, or any other matter arising out of the agreement, if the place of employ• ment of most of the employees to which the agreement relates is within the area of jurisdiction of that Regional Court; (3) actions by members or their successors or by employers against benefit funds, within the meaning of the Wage Protec• tion Law, 5718-19588) (i.e. provident funds and pension funds — Tr.), and actions by benefit funds against members or their successors or against employers, all if the actions arise out of membership in the funds or the liability of employers to the funds, as the case may be; (4) actions between an employee and an employees' organisa• tion connected with membership or with the sphere of activity of the organisation in labour affairs; (5) any matter with which the Regional Court is competent to deal under the amendments to the National Insurance Law (Consolidated Version), 5728-1968'), and other Laws, set out in the First Schedule. (b) A Regional Court shall have power to try offences against the enactments specified in the Second Schedule and against the regula• tions made under such enactments. The Minister of Justice and the Minister of Labour may, with the approval of the Labour Affairs Com• mittee of the Knesset, by order, amend, add to or make deletions in the Second Schedule. In proceedings under this subsection, a Judge shall sit alone, and the rules of procedure and rules of evidence applicable in criminal proceedings in courts of law shall apply.

Jurisdiction 25. The National Court shall have exclusive power to hear — of National Court (1) a dispute between the parties to a collective agreement, other than a dispute which under section 24(a)(2) is within the jurisdic• tion of a Regional Court, concerning the existence, application, interpretation, implementation or infringement of, or any other matter arising out of the agreement;

1) P.G. of 1944, No. 1321, Suppl. I, p. 129 (English Edition). 2) Sefer Ha-Chukkimoi 5717, p. 63; LSI vol. XI, p. 58. 3) Sefer Ha-Chukkim of 5718, p. 86; LSI vol. XII, p. 100. 4) Sefer ha-Chukkim of 5728, p. 108;XW vol. XXII, p. 114.

80 (2) actions between an employees' organisation and another em­ ployees' organisation, and actions between an employers' organisa­ tion and another, employers' organisation, all if the actions arise out of matters pertaining to labour relations.

26. (a) A judgment of a Regional Court under section 24(a) shall be Appeal to appealable to the National Court. Any other decision of a Regional National Court. Court shall be appealable if leave to appeal is given in the decision itself or by the President or Deputy President of the National Court. (b) A judgment of a Regional Court under section 24(b) shall be appealable to the National Court. In an appeal as aforesaid, the National Court shall consist of three Judges and the rules of procedure and rules of evidence applicable in criminal appeals in a court of law shall apply. (c) A judgment in an appeal under subsection (b) shall, for the purposes of a further appeal, be deemed to be a judgment of a District Court in a criminal appeal.

27. (a) The powers and functions of the Registrar and appeals against Powers of Registrar. except the ,־ his decisions shall be in accordance with sections 6, 6A, 78 closing passage of 8(b), 9, 10, 14, 15 and 17 of the Registrars Ordinance, 1936, with such adaptations and modifications as may be necessary. (b) Besides as provided in subsection (a), the Registrar shall have the power vested in a Regional Court with regard to actions for delay of wages, within the meaning of the Wage Protection Law, 5718-1958, if the delayed wage does not exceed 1,000 pounds, and the decision of the Regional Court in an appeal against a decision of the Registrar under this subsection shall not be subject to a further appeal.

28. Nothing provided in this Law shall be construed as preventing the Arbitration. referral of any matter to arbitration. However, where the sole subject of the arbitration is a matter in which the Court has exclusive jurisdiction, the Court shall have the powers of a court of law with regard to the arbitration.

29. (a) A Regional Court, and the National Court except when Power to hearing an appeal, shall be competent to grant any relief which a District grant relief. Court is competent to grant, and within the scope of their jurisdiction their power shall be the same as that of a District Court. (b) A National Court which hears an appeal shall be competent to grant any relief which the Supreme Court sitting as a Court of Appeal is competent to grant, and within the scope of its jurisdiction its power shall be the same as that of the Supreme Court.

30. (a) Where it appears to the Attorney-General that a particular Right to proceeding before a Court involves or affects or may involve or affect a intervene in proceedings. right of the State of Israel or a public right or interest, he may, at his discretion, appear and be heard in that proceeding or specially empower his representative to appear and be heard on his behalf. (b) An employees' organisation or employers' organisation which is a party to a collective agreement may appear and state its case in every proceeding before a Court involving the interpretation of that collective agreement.

Summary 31. (a) A Chief Judge or a Judge of a Regional Court may prescribe hearing. dates at which the hearing of a matter within the jurisdiction of a Regional Court shall be instituted otherwise than by statement of claim and summons (such a hearing hereinafter referred to as a "summary hearing"), and at the dates so prescribed the parties may appear before the Court for a summary hearing. (b) A summary hearing shall be held, before a Judge sitting alone or a Registrar, with the consent of all the parties. The application of the parties and the particulars of their contentions shall be entered in the record and shall be regarded as pleadings. (c) A summary hearing may be concluded by adjudication or by a compromise settlement. (d) A judgment in a summary hearing shall not be appealable unless leave to appeal is given in the judgment itself or by the President or Deputy President of the National Court. (e) The Judge or Registrar may discontinue the summary hearing without giving judgment if in his opinion the subject-matter of the hearing, the questions at issue or the volume of the evidence does or do not permit a summary hearing without pleadings. (f) This section shall not be applied where the amount of the claim or the value of the subject-matter exceeds an amount prescribed by the Minister of Labour with the approval of the Labour Affairs Com• mittee of the Knesset. The amount so prescribed may be different for hearings before a Judge and before a Registrar.

Evidence. 32. A Court shall not be bound by the rules of evidence except in a hearing under section 24(b) or 26(b).

Procedure. 33. In any procedural matter not provided for by this Law or by regulations thereunder, the Court shall adopt whatever course it deems best for the just handling of the case.

Representation. 34. A party may be represented before a Court by a person designated in that behalf by an employees' or employers' organisation of which that party is a member. Representation shall be by specific authorisation only : Provided that a notice by the party represented which has been entered in the record and which indicates that he is a member of an employees' or employers' organisation, as the case may be, and that he agrees to be represented by a person designated in that behalf by the organisation shall, for the purposes of this section, be deemed to be a specific authorisation.

Exemption 35. An authorisation, whether of an advocate or of another person, to from stamp represent a party in a proceeding before a Court shall be exempt from duty. stamp duty and any other compulsory payment. 36. (a) Where a decision of a Court, including the judgment, involves Decision of a minority opinion, all the Judges shall sign the majority decision, which Court. shall be marked as such but shall not indicate the name of the holder of the minority opinion. (b) The minority opinion shall form part of the record, which shall not, however, indicate the name of the holder of that opinion, and the Court shall read that opinion together with the decision without naming its holder.

37. A judgment of a Court shall, as to everything relating to execu• Execution. tion, be treated as a judgment of a court of law. The provisions of the Execution Law, 5727-19671), and the regulations made thereunder shall apply mutatis mutandis.

38. A Judge shall mutatis mutandis have all the powers conferred by Contempt of sections 5 to 8 of the Contempt of Court Ordinance2), and for the pur• court. poses of section 8 of that Ordinance, the National Court composed of three Judges shall have the powers of the Supreme Court.

39. Sections 32 and 34 to 43 of the Courts Law, 5717-1957, shall apply Application of provisions mutatis mutandis to the Courts. The powers of the President of the of Courts Law, Supreme Court under the said sections, except the power under section 42, 5717-1957. shall vest in the President of the National Court.

40. This Law shall come into force on the 18th Elul, 5729 (1st Septem• Commencement. ber, 1969).

41. Proceedings which immediately before the coming into force of Transitional provisions. this Law are pending before a court of law, the National Insurance Tribunal or any other authority replaced by a Court by virtue of the amendments set out in the First Schedule shall be dealt with as if this Law had not come into force.

42. For the purposes of this Law, the State shall be treated like any Status of other employer. ^ State•

43. (a) The Minister of Justice and the Minister of Labour are Implementation charged with the implementation of this Law and may make regulations and regulations. as to any matter relating to such implemetation. (b) The Minister of Justice may, after consultation with the Minister of Labour, make regulations as to the procedure of the Courts, including regulations as to appeals, as well as regulations as to — (1) the times for the ordinary sessions of the Courts; (2) the publication of judgments; (3) court fees and exemption therefrom ;

1 ) Sefer Ha-Chukkim of 5727, p. 116; LSI vol. XXI, p. 112. 2) Laws of Palestine vol. I, cap. 23, p. 356 (English Edition).

83 (4) the estimate of costs and the determination of advocates' fees which a Judge or Registrar may award for services performed in a Court; (5) legal aid; (6) payments to representatives of the public; (7) travelling, board-and-lodging and loss-of-working-time allowances to witnesses.

FIRST SCHEDULE (Section 24(a) (5))

Amendment of In the National Insurance Law (Consolidated Version), 5728-1968 — National Insurance Law. (1) the definition of "the National Insurance Tribunal" in section 1 shall be replaced by the definition: ""the Labour Court" has the same meaning as in the Labour Courts Law, 5729-1969 ;"; (2) the term "the Tribunal" shall wherever appearing be replaced by the term "a Labour Court"; (3) the term "a Local Tribunal" shall wherever appearing be replaced by the term "a Regional Court within the meaning of the Labour Courts Law, 5729-1969"; (4) the words "before the court or in an application for an order of payment in respect of an allowance before a Wage Collection Officer, within the meaning of the Wage Protection Law, 5718- 1958" in section 127(a) shall be replaced by the words "before a Regional Court, within the meaning of the Labour Courts Law, 5729-1969"; (5) the words "before the court or the Wage Collection Officer" in section 127 (b) shall be replaced by the words "before the Regional Court within the meaning of the Labour Courts Law, 5729-1969"; (6) sections 224 to 229 and 233 to 238 shall be repealed ; (7) section 232 shall be replaced by the following section : "Contribution 232. The National Insurance Institute shall contribute to budget of to the budget of the Labour Courts by a deduction from Labour Courts. the Treasury allocation referred to in section 217 of an amount determined by the Ministers of Finance, Justice and Labour after consultation with the Institute." ; (8) the expression "223, 225, 227(b) and 229" in section 243 shall be replaced by the expression "and 223".

Amendment of 2. In the Discharged Soldiers (Reinstatement in Employment) Law, Discharged 5709-19491) — Soldiers (Rein• statement in (1) section 22 shall be repealed; Employment) (2) the words "an appeal committee" in section 23(a) shall be Law. replaced by the words "a Regional Court, within the meaning of the

1) Sefer Ho-Chukkim of 5709, p. 13; LSI vol III, p. 10.

84 Labour Courts Law, 5729-1969 (hereinafter referred to as a "Regional Court")"; (3) the words "an appeal committee" in section 23(c) shall be replaced by the words "a Regional Court"; (4) the words "An appeal committee shall" in section 23(d) shall be replaced by the words "A Regional Court shall"; (5) the words "An appeal committee may" in section 24 shall be replaced by the words "A Regional Court may" ; (6) the words "and appeal committee" in section 25(a) shall be deleted; (7) the words "or appeal committee" in section 25(c) shall be deleted; (8) the words "or appeal committee" in section 26(a) shall be deleted; (9) the words "or appeal committee" in section 26(b) shall be deleted; (10) the words "or appeal committee" shall wherever appearing in section 26(c) and (d) be deleted; (11) the expression "appeal committee" shall wherever appearing in sections 27, 28 and 29 be replaced by the expression "Regional Court"; (12) the words "or appeal committee" in section 42(e) shall be deleted; (13) the words "or appeal committee" in section 42(f) shall be replaced by the words "or of a Regional Court in an appeal under this Law".

In the State Service (Benefits) Law, 5715-1955*) — Amendment of State Service (1) section 7 shall be repealed; (Benefits) Law. (2) the words "and an appeal committee" in section 8 shall be deleted; (3) the words "an appeal committee (hereinafter: "the com• mittee")" in section 36(a) shall be replaced by the words "a Regional Court, within the meaning of the Labour Courts Law, 5729-1969 (hereinafter: "A Regional Court")"; (4) the words "concerning the time and procedure for the filing of appeal and the procedure for the hearing thereof" in section 36(b) shall be replaced by the words "concerning the time for the filing of appeal"; (5) section 36(c), (e) and (f) shall be repealed; (6) the words "The committee may" in section 36(d) shall be replaced by the words "The Regional Court may"; (7) section 37 shall be repealed; (8) the expressions "section 36 or 37" and "until the committee

1 ) Sefer Ha-Chukkim of 5715, p. 135 ; LSI vol. IX, p. 149.

85 directs" in section 38 shall be respectively replaced by the expressions "section 36" and "until the Regional Court directs"; (9) the expression "section 36 and 37" in section 42(c) shall be replaced by the expression "section 36"; (10) section 56 shall be repealed.

Amendment of In the Employment Service Law, 5719-19591) — Employment Service Law. (1) the closing passage of section 35, beginning with the words "may request the decision of the Minister of Labour" shall be replaced by the words "may request the decision of a Regional Court, within the meaning of the Labour Courts Law, 5729-1969 (hereinafter referred to as a "Regional Court")"; (2) the closing passage of section 43, beginning with the words 'to a higher objection committee" shall be replaced by the words "to a Regional Court, all within the times prescribed by regulations; the procedure of objection before an objection committee shall be prescribed by regulations".

Amendment of 5. In the Wage Protection Law, 5718-1958 — Wage Protection Law. (1) section 16 shall be repealed; (2) the words "in the court or with the wage collection officer" and the words "court or the officer" in section 17A shall be respectively replaced by the words "in a Regional Court, within the meaning of the Labour Courts Law, 5729-1969 (hereinafter referred to as a "Regional Court")" and the words "the Regional Court"; (3) the words "A court or a wage collection officer may", the words "if it or he is satisfied" and the words "the court or the wage collection officer, as the case may be" in section 18 shall be respec• tively replaced by the words "A Regional Court may", "if it is satisfied" and "the Regional Court" ; (4) section 19 shall be repealed; (5) section 19A(b) shall be repealed; (6) sections 20, 21A and 23 shall be repealed; (7) the closing passage of section 31, beginning with the words "he also may, in consultation with the Minister of Justice, make regulations" shall be deleted.

Amendment of 6. In section 7 of the Labour Inspection (Organisation) Law, 5714- Labour Inspec• 19542), the words "a District Court Judge upon application by way of tion (Organisa• tion) Law. motion" in subsection (a) shall be replaced by the words "a Regional Court, within the meaning of the Labour Courts Law, 5729-1969, upon application".

1 ) Sefer Ha-Chukkim of 5719, p. 32 ; LSI vol. XIII, p, 29. 2) Sefer Ha-Chukkim of 5714, p. 202; LSI vol. VIII, p. 175.

86 7. In section 30(b) of the Hours of Work and Rest Law, 5711-19511), Amendment of the closing passage, beginning with the words "may apply to the Minis­ Hours of Work and Rest Law. ter of Labour for a decision" shall be replaced by the words "may apply to the Labour Court, within the meaning of the Labour Courts Law, 5729-1969, for a decision; the Court shall give the employees' committee an opportunity to state its case, in such manner as it shall direct, even if it was not the committee which applied for the decision".

8. In the Male and Female Workers (Equal Pay) Law, 5724-1964=) — Amendment of Male and Female (1) the closing passage of section 2(a), beginning with the words Workers (Equal "may request the decision of the wage collection officer", shall be Pay) Law. replaced by the words "may request the decision of a Regional Court, within the meaning of the Labour Courts Law, 5729-1969 (herein­ after referred to as a "Regional Court")"; (2) the words "The Minister of Labour may, after consultation with the Minister of Justice" and the words "the wage collection officer" in section 2(b) shall be respectively replaced by the words "The Minister of Justice may, after consultation with the Minister of Labour" and the words "a Regional Court"; (3) the words "the wage collection officer" in section 3 shall be replaced by the words "the Regional Court".

9. In section 10 of the Border Victims (Benefits) Law, 5717-19563) — Amendment of Border Victims (1) the words "The National Insurance Tribunal under the (Benefits) Law. National Insurance Law" shall be replaced by the words "A Regional Court, within the meaning of the Labour Courts Law, 5729-1969"; (2) the words "and sections 105, 106, 107, 108 and 111 of the National Insurance Law and the regulations made thereunder" shall be replaced by the words "and section 231 of the National Insurance Law and the regulations made thereunder".

10. Section 6 of the Life-Saving Operations (Casualties) (Benefits) Law, Amendment of 5725-1965•1), shall be replaced by the following section : Life-Saving Operations "Competence 6. A Regional Court, within the meaning of the Labour (Casualties) (Benefits) Law. shaI1 have exclusive power to 5729־1969־ 'Court011* CoUrtS Law hear and determine any claim for a benefit under this Law.".

11. The latter part of section 14(b) of the Annual Leave Law, 5711- Amendment of 19518), from the words "the Minister of Labour shall decide the Annual Leave matter finally" shall be replaced by the words "a Regional Court, Law. within the meaning of the Labour Courts Law, 5729-1969, shall decide the matter.".

1) Sefer Ha-Chukkim of 5711, p. 204; LSI vol. V, p. 125. 2) Sefer Ha-Chukkim of 5724, p. 106; LSI vol. XVIII, p. 165. 3) Sefer Ha-Chukkim of 5717, p. 22; LSI vol. XI, p. 19. 4) Sefer Ha-Chukkim of 5725, p. 288; LSI vol. XIX, p. 314. 5) Sefer Ha-Chukkim of 5711, p. 234; LSI vol. V, p. 155.

87 SECOND SCHEDULE (Section 24(b))

Department of Labour Ordinance, 19431) Accidents and Occupational Diseases (Notification) Ordinance, 19452) Work Safety Ordinance, 19468) Discharged Soldiers (Reinstatement in Employment) Law, 5709-1949 Hours of Work and Rest Law, 5711-1951 Annual Leave Law, 5711-1951 Night Baking (Prohibition) Law, 5711-19514) Explosives Law, 5714-19545) Apprenticeship Law, 5713-1953") Youth Labour Law, 5713-19537) National Service Law, 5713-1953s) Employment of Women Law, 5714-19549) Labour Inspection (Organisation) Law, 5714-1954 Wage Protection Law, 5718-1958 Employment Service Law, 5719-1959 State Service (Appointments) Law, 5719-195910) Emergency Labour Service Law, 5727-196711) National Insurance Law (Consolidated Version), 5728-1968") Trades and Industries (Regulation) (Petroleum) Regulations, 193418)

GOLDA MEIR YAAKOV S. SHAPIRO YOSEF ALMOGI Prime Minister Minister of Justice Minister of Labour

SHNEUR ZALMAN SHAZAR President of the State

1) P.G. of 1943, Suppl. I. p. 2 (English Edition). 2) P.G. of 1945, Suppl. I, p. 80 (English Edition). 3) P.G. of 1946, Suppl. I, p. 63 (English Edition). 4) Sefer Ha-Chukkim of 5711, p. 61; LSI vol. V, p. 53. 5) Sefer Ha-Chukkim of 5714, p. 66; LSI vol. VIII, p. 57. 6) Sefer Ha-Chukkim of 5713, p. 108; LSI vol. VII, p. 86. 7) Sefer Ha-Chukkim of 5713, p. 115; LSI vol. VII, p. 94. 8) Sefer Ha-Chukkim of 5713, p. 163; LSI vol. VII, p. 137. 9) Sefer Ha-Chukkim of 5714, p. 154; LSI vol. VIII, p. 128, 10) Sefer Ha-Chukkim of 5719, p. 86; LSI vol. XIII, p. 87. 11) Sefer Ha-Chukkim of 5727, p. 86; LSI vol. XXI, p. 82. 12) Sefer Ha-Chukkim of 5728, p. 108;IS/ vol. XII, p. 82. 13) P.G. of 1934, Suppl. II, p. 451 (English Edition). (No. 27)

CHIEF RABBINICAL COUNCIL (ELECTIONS) (TEMPORARY PROVISIONS) LAW, 5729-1969*

1. The elections of the Chief Rabbis of Israel and of the Chief Rab- Elections, binical Council of Israel shall be held not later than the 4th Nisan, 5731 (30th March, 1971).

2. The Chief Rabbis of Israel, and the Chief Rabbinical Council of Extension ־Israel, elected on the 4th Nisan, 5724 (17th March, 1964) shall be of tenure regarded as holding office continuously from the day of their election until the holding of elections under section 1.

3. The Minister of Religious Affairs is charged with the implementa- Implementation, tion of this Law.

GOLDAMEIR ZERACH WARHAFTTG Prime Minister Minister of Religious Affairs

SHNEUR ZALMAN SHAZAR President of the State

(No. 28)

NATIONAL DEFENCE LOAN LAW, 5729-1969**

1. The Government is hereby authorised to accept, on behalf of the Authorisation State, a loan for defence purposes of a total amount not exceeding 300 to Dorrow• million pounds and to issue bonds for this purpose.

2. The bonds shall be issued in series and shall be to bearer or nominal *85"e in or partly to bearer and partly nominal, as the Minister of Finance may senes• prescribe by regulations in respect of each series.

3. The amounts payable under the bonds and all expenses involved in Payment and the implementation of this Law shall be paid out of the general revenue securitv• and assets of the State.

4. The affairs of the loan shall be managed by the Bank of Israel Management (hereinafter referred to as "the Administration"). o£ l°an•

Passed by the Knesset on the 1st Nisan, 5729 (20th March, 1969) and published in Sefer Ha-Chukkim No. 554 of the 11th Nisan 5729 (30th March, 1969), p. 82; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 820 of 5729, p. 138. Passed by the Knesset on the 1st Nisan, 5729 (20th March, 1969) and published in Sefer Ha-Chukkim No. 554 of the 11th Nisan, 5729 (30th March, 1969), p. 82; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 819 of 5729, p. 134.

89 Conditions 5. (a) The Minister of Finance shall prescribe by regulations in of loan. respect of each series — (1) the aggregate face-value; (2) the date of issue; (3) the rate, and the modes and times of payment, of the interest on the bonds: Provided that the rate of interest on bonds linked to the cost-of- living index shall not exceed 6 per cent p.a.; (4) the modes and times of redemption of the bonds; (5) the face-value of the bonds; (6) the text of the bonds. (b) Regulations under paragraphs (3) and (4) shall require the approval of the Finance Committee of the Knesset.

Special 6. The Minister of Finance may, with the approval of the Finance conditions. Committee of the Knesset, prescribe, by regulations, in respect of each series — (1) that the principal and interest of the bonds shall be linked, wholly or in part, to the cost-of-living index in accordance with prescribed conditions; (2) that the interest shall not be chargeable with any tax imposed on income, or that the tax thereon shall not exceed 25 per cent.

Register of 7. (a) The Administration shall maintain a register in which the nominal names and addresses of the holders of the nominal bonds and the face- bonds. value of such bonds shall be entered. (b) The register shall be prima facie evidence of any matter duly entered therein.

Transfer 8. (a) Bearer bonds shall be transferable by delivery. of bonds. (b) Nominal bonds shall be transferable by instrument of transfer signed by the transferor and the transferee. The instrument of transfer shall be delivered to the Administration, which shall register the transfer.

Agreement for 9. The Minister of Finance may enter into an agreement with a person flotation who undertakes or guarantees the flotation of all or part of the bonds and of bonds. pay him a commission as the Minister of Finance may prescribe by regulations, with the approval of the Finance Committee of the Knesset, either generally or in respect of a particular series.

Duty of 10. (a) An employer who has deducted from the pay of his employees person an amount intended for the acquisition of bonds, and any other person deducting or holding who holds any amount of the money of another intended for that purpose, loan moneys. shall transfer that amount to the Bank of Israel, or to a financial institu• tion through which the bonds are to be acquired, within thirty days, which shall be reckoned, in the case of an employer, from the day on which he made the deduction from the pay of his employees, and in the

90 case of another person, from the day on which he began to hold the amount. (b) A person who contravenes the provisions of subsection (a) shall be liable to imprisonment for a term of six months or to a fine of 5,000 pounds in respect of each month of delay. (c) Where an offence under this section has been committed by a body of persons, every person who at the time of its commission was an active director or a manager, secretary, trustee, authorised agent or chief or sole accountant of that body shall also be guilty thereof unless he proves — (1) that the offence was committed without his knowledge; or (2) that he took all reasonable steps to ensure the prevention of the offence.

11. The bonds and the transfer thereof shall be exempt from stamp Exemption duty from stamp duty.

12. The bonds shall bear the facsimile signatures of the Minister of Signature. Finance and the Accountant General.

13. The Minister of Finance may prescribe by regulations rules under Acquisition which the Administration may, notwithstanding anything contained in withoutS this Law, conduct a registration of bonds acquired by a banking insti- issue thereof, tution, within the meaning of the Bank of Israel Law, 5714-19541), and of the transfer of the rights therein from one banking institution to another, without issuing the bonds acquired or transferred as aforesaid. For the purposes of this section, a member of the Tel Aviv Stock Exchange and the "Gmul" Company Ltd. shall be treated as banking institutions.

14. The Minister of Finance is charged with the implementation of this Implementation Law and may make regulations as to any matter relating to such imple- an regu atIons• mentation : Provided that regulations under section 5 or 6 shall be made before the issue of the series in question, and once made shall not be capable of variation.

GOLDAMEIR ZEEV SHAREF Prime Minister Minister of Finance SHNEUR ZALMAN SHAZAR President of the State

1 ) Sefer Ha-Chukkim of 5714, p. 192 ; LSI vol. VIII, p. 163.

91 (No. 29)

ADVANCE PAYMENT LAW, 5729-1969*

Advance 1. The Government is hereby authorised to accept from the Bank of payment to Israel (hereinafter referred to as "the Bank), and the Bank is hereby Government from Bank authorised to make to the Government, an advance payment of an of Israel. amount not exceeding 400 million pounds.

Conditions of 2. The conditions, and times of repayment, of the advance payment advance shall be laid down by agreement between the Minister of Finance and payment. the Governor of the Bank with the approval of the Finance Committee of the Knesset.

GOLDA MEIR ZEEV SHAREF Prime Minister Minister of Finance SHNEUR ZALMAN SHAZAR President of the State

(No. 30)

ADVANCE PAYMENT (No. 2) LAW, 5729-1969**

Advance 1. The Government is hereby authorised to accept from the Bank of payment to Israel (hereinafter referred to as "the Bank"), and the Bank is hereby Government from Bank of authorised to make to the Government, an advance payment of an Israel. amount not exceeding 659,500,000 pounds.

Conditions 2. The conditions, and times of repayment, of the advance payment of advance shall be laid down by agreement between the Minister of Finance and payment. the Governor of the Bank with the approval of the Finance Committee of the Knesset.

GOLDA MEIR ZEEV SHAREF Prime Minister Minister of Finance SHNEUR ZALMAN SHAZAR President of the State

* Passed by the Knesset on the 1st Nisan, 5729 (20th March, 1969) and published in Sefer Ha-Chukkim No. 554 of the 11th Nisan, 5729 (30th March, 1969), p. 84; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 819 of 5729, p. 134. ** Passed by the Knesset on the 1st Nisan, 5729 (20th March, 1969) and published in Sefer Ha-Chukkim No. 554 of the 11th Nisan, 5729 (30th March, 1969), p. 85; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 806 of 5729, p. 52.

92 (No. 31)

SHORT-TERM LOAN (AMENDMENT No. 9) LAW, 5729-1969*

1. In section 1 of the Short-Term Loan Law, 5720-19601), the Amendment of expression "620 million pounds" shall be replaced by the expression section 1. "800 million pounds".

GOLDA MEIR ZEEV SHAREF Prime Minister Minister of Finance SHNEUR ZALMAN SHAZAR President of the State

(No. 32)

PROPERTY TAX AND COMPENSATION FUND (AMENDMENT No. 5) LAW, 5729-1969**

1. In section 1 of the Property Tax and Compensation Fund Law, Amendment of 5721-19612) (hereinafter referred to as "the principal Law"), after the section 1. words "from inability to utilise property" in the definition of "indirect damage", there shall be inserted the words "situated in the area of a border settlement".

2. Section 41A shall be re-marked as section 41A(a), and the following Amendment of subsection shall be inserted thereafter : section 41 A. "(b) An invalid who owns a building which is his dwelling shall be exempt from one quarter of the tax due thereon. For this purpose, "invalid" means an invalid within the meaning of the Invalids (Pension and Rehabilitation) Law, 5719-1959 (Con-

* Passed by the Knesset on the 1st Nisan, 5719 (20th March, 1969) and published in Sefer Ha-Chukkim No. 554 of the 11th Nisan, 5729 (30th March, 1969), p. 85; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 819 of 5729, p. 134. 1) Sefer Ha-Chukkim of 5720, p. 48 — LSI vol. XIV, p. 41; Sefer Ha-Chukkim of 5721, p. 128 — LSI vol. XV, p. 122; Sefer Ha-Chukkim of 5722, pp. 75 and 88— LSI vol. XVI, pp. 65 and 75; Sefer Ha-Chukkim of 5723, pp. 48 and 118 — LSI vol. XVII, pp. 57 and 142; Sefer Ha-Chukkim of 5724, pp. 31 and 67 — LSI vol. XVIII, pp. 32 and 57; Sefer Ha-Chukkim of 5727, p. 201 — LSI vol. XXI, p. 221. ** Passed by the Knesset on the 6th Nisan, 5729 (25th March, 1969) and published in Sefer Ha-Chukkim No. 554 of the 11th Nisan, 5729 (30th March, 1969), p. 86; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 817 of 5729, p. 126. 2) Sefer Ha-Chukkim of 5721, p. 100 — LSI vol. XV, p. 101; Sefer Ha-Chukkim of 5724, p. 91 — LSI vol. XVIII, p. 85; Sefer Ha-Chukkim of 5725, p. 197 — LSI vol. XIX, p. 206; Sefer Ha-Chukkim of 5727, p. 26 — LSI vol. XXI, p. 15; Sefer Ha-Chukkim of 5728, p. 42 — LSI vol. XXII, p. 36.

93 solidated Version)1) or the Invalids (War against the Nazis) Law, 5714-1954*), or a border victim within the meaning of the Border Victims Benefits Law, 5717-19563), whose degree of invalidity is not less than 19 per cent.".

Replacement 3. Section 41B of the principal Law shall be replaced by the following section 41B. section : "Exemption 4IB. An oleh (immigrant; plural: olim) who owns a of oleh. building which is his dwelling or which is a workshop, shop or office where he works regularly shall, in the first five years from the day of his entering Israel as an oleh, be exempt from 80 per cent of the tax due thereon. For the present purpose, "oleh" means a person who entered Israel on or after the 20th Adar Bet, 5727 (1st April, 1967) while holding an oleh's visa or oleh's certificate under the Law of Return, 5710-19504), or while entitled to a visa or certificate as aforesaid and holding a visa or permit of temporary residence under the Entry into Israel Law, 5712-1952°), or who belongs to a class of persons in respect of whom the Minister of Finance has prescribed that they shall be treated as olim for the present purpose.".

Addition of 4. The following section shall be inserted after section 41B of the section 41C. principal Law: "Exemption 41C. A blind person who owns a building which is his for blind dwelling shall be exempt from half of the tax due person. thereon.".

Freezing of 5. (a) Notwithstanding anything provided in the principal Law, the tax for the owner of an urban or industrial building or of land which in the tax tax years 1968 year 1967 was classified for the purposes of the property rate of local and 1969. authorities as occupied land or agricultural land shall not be required to pay tax thereon for the tax years 1968 and 1969 to an amount exceeding the aggregate amount of the tax and the property rate of local authorities to which he was liable in respect of that property for the tax year 1967,

1) Sefer Ha-Chukkim of 5719, p. 276 — LSI vol. XIII, p. 315; Sefer Ha- Chukkim of 5721, p. 156 — LSI vol. XV, p. 165; Sefer Ha-Chukkim of 5725, pp. 6 and 292 — LSI vol. XIX, pp. 4 and 319; Sefer Ha-Chukkim of 5727, p. 8 — LSI vol. XXI, p. 7; Sefer Ha-Chukkim of 5728, p. 168 — LSI vol. XXII, p. 189. 2) Sefer Ha-Chukkim of 5714, p. 76 — LSI vol. VIII, p. 63; Sefer Ha-Chukkim of 5717, p. 99 — LSI vol. XI, p. 105; Sefer Ha-Chukkim of 5721, p. 162 — LSI vol. XV, p. 174; Sefer Ha-Chukkim of 5725, p. 299 — LSI vol. XIX, p. 328. 3) Sefer Ha-Chukkim of 5717, p. 22; LSI vol. XI, p. 19. 4) Sefer Ha-Chukkim of 5710, p. 159; LSI vol. IV, p. 114. 5) Sefer Ha-Chukkim of 5712, p. 354 — LSI vol. VI, p. 159; Sefer Ha-Chukkim of 5726, p. 52 — LSI vol. XX, p. 46.

94 before any exemption or reduction granted him if the ground for the grant thereof ceased after the tax year 1967. (b) The provisions of subsection (a) shall not apply — (1) in respect of property the purpose or use of which has changed in a manner changing the amount of the tax due thereon or the amount of the property rate which would be due thereon had it not been abolished; (2) in respect of a building addition; (3) in respect of property the ownership of which was trans• ferred in the tax year 1967, 1968 or 1969 otherwise than to an heir within the meaning of section 2 of the Succession Law, 5725-19651).

6. Where a person entered Israel while holding an oleh's visa or oleli's Exemption of certificate under the Law of Return, 5710-1950, or while entitled to a oleh — transi• tional provision. visa or certificate as aforesaid and holding a visa or permit of temporary residence under the Entry into Israel Law, 5712-1952, and on the 20th Adar Bet, 5727 (1st April, 1967) five years had not yet elapsed since the day of his entry into Israel as aforesaid, such person shall, in the period remaining until the termination of the said five years, be exempt from two thirds of the tax due on a building owned by him and serving as his dwelling.

7. Section 22 of the Property Tax and Compensation Fund (Amend• Repeal. ment No. 4) Law, 5728-19682), is hereby repealed.

8. (a) For the removal of doubt, it is hereby declared that the law Application is, and has been in the past, as provided in section 1. of certain sections. (b) Sections 3, 6 and 7 shall apply in respect of the tax year 1967 and onwards. (c) Section 4 shall apply in respect of the tax year 1968 and onwards. (d) Section 2 shall apply in respect of the tax year 1969 and onwards.

GOLDA MEIR ZEEV SHAREF Prime Minister Minister of Finance SHNEUR ZALMAN SHAZAR President of the State

1 ) Sefer Ha-Chukkim of 5725, p. 63 ; LSI vol. XIX, p. 58. 2) Sefer Ha-Chukkim of 5728, p. 42 ; LSI vol. XXII, p. 36.

95 (No. 33)

INVALIDS (NAZI PERSECUTION) (AMENDMENT No. 2) LAW, 5729-1969*

Amendment of 1. In section 1 of the Invalids (Nazi Persecution) Law, 5717-19571) section 1. (hereinafter referred to as "the principal Law"), the following definitions shall be inserted at the end : " "destitute" means incapable of earning one's living owing to illness or a physical or mental defect and not maintained at an institution under circumstances and conditions as specified in section 5; "pension" means any periodical payment; "gratuity" means any non-recurrent payment (other than a payment

less any ־(representing amounts of pension accumulated in the past amount of expenses legitimately incurred by the invalid in obtaining the gratuity.".

Amendment of 2. In section 3 of the principal Law, paragraph (3) shall be repealed. section 3.

Addition of 3. The following sections shall be inserted after section 3 of the sections 3A principal Law: to 3E. "Pension 3A. (a) Where an invalid is entitled to a pension under to an invalidity pension from any other 0־Law^and'8 ^s ^aw an pension from source, there shall be deducted from his pension under this other source. Law an amount equal to the amount of pension payable for the same month from the other source. If the pension from the other source is not payable on a monthly basis, a proportional part, in accordance with the respective periods of payment, shall be deducted from the monthly pension under this Law. If the amount of the pension from the other source exceeds the amount of the pension under this Law, no pension shall be paid under this Law. (b) Deductions as aforesaid shall only begin when the total amount of pension from the other source to which the invalid has become entitled is sufficient to cover the expenses legitimately incurred by him in obtaining that pension. Pension under 3B. The following provisions shall apply in the case of this Law and an invalid entitled to a pension under this Law who after gratuity from other source. settling in Israel became entitled, by reason of his invalid­ ity, to a gratuity from any other source :

* Passed by the Knesset on the 6th Nisan, 5729 (25th March, 1969) and published in Sefer Ha-Chukkim No. 555 of the 16th Nisan, 5729 (4th April, 1969), p. 90; die Bill and an Explanatory Note were published in Hatza'ot Chok No. 775 of 5728, p. 218. 1) Sefer Ha-Chukkim No. 226 of 5717, p. 103 — LSI vol. XI, p. lU;SeferHa- Chukkim No. 316 of 5720, p. 88 — LSI vol. XIV, p. 85.

96 (1) The invalid shall pay to the Treasury an amount equal to 75 per cent of the gratuity or an amount equal to the total amount of pension under this Law to which he became entitled up to the day on which his right to the gratuity was confirm• ed (such day hereinafter referred to as "the date of confirmation"), — whether or not that amount of pension (hereinafter referred to as "the accum• ulated pension") has already been paid—whichever is the smaller amount; (2) where 75 per cent of the amount of the gratuity exceeds the amount of the accumulated pension, the invalid shall make payment as provid• ed in paragraph (1) and, in addition, the payment in his favour of pension under this Law shall be discontinued from the date of confirmation and shall not be resumed until the total pension under this Law which would have been payable in his favour had payment not been discontinued reaches an amount equal to the difference between the accumulated pension and 75 per cent of the gratuity; (3) debts of the invalid under this section may be set off against pension under this Law due to the invalid from the Treasury; (4) an invalid shall not be bound to make pay• ment to the Treasury under this section so long as the gratuity has not been actually placed at his disposal; (5) the provisions of this section shall not derogate from the provisions of section 3A.

Calculation 3C. The Minister of Finance may, with the approval of expenses of the Finance Committee of the Knesset, prescribe by incurred in obtaining regulations the classes and maximum rates of expenses pension or which shall be regarded as incurred in obtaining a pension gratuity. or gratuity.

Calculation of 3D. For the purposes of sections 3A and 3B, amounts in value of foreign currency shall be reckoned according to their foreign currency. value in Israeli currency at the time when they were actually placed at the disposal of the invalid or, in the case of expenses, according to their value as aforesaid at the time when the expenses were incurred.

Duty of 3E. Where an invalid who has been awarded or made notification. application for a pension under this Law is entitled, by reason of his invalidity, to a pension or gratuity from any other source, the following provisions shall apply:

97 (1) if he has filed a claim for a pension or gratuity as aforesaid, he shall notify the competent authority to such effect in writing within three months from the day of the filing of the claim; (2) if a pension or gratuity as aforesaid has been awarded him, or if the amount thereof has been fixed by agreement, he shall notify the competent authority to such effect in writing within three months from the time when the award or agree• ment is notified to him.".

Amendment of 4. In section 4(a) of the principal Law, the expression '500 prutot': section 4. shalil 1b e replaced by the expression "65 agorot". Addition of 5. ThTh*e» followinfnHrtwinog• cArtinnsectionsc chalshall he»be incArtinserte#»rdl afteaftprr section 4 of the principal sections 4A, Law: 4B and 4C. "Additional 4A. (a) Where an invalid with a degree of invalidity of pension. not less than 50 per cent is destitute, and his income, including any assistance towards his upkeep which is not merely temporary, but not including a pension under section 4 (hereinafter referred to as "the principal pen• sion"), does not exceed the amount of the principal pension payable to an invalid whose degree of invalidity is 50 per cent, he shall, in addition to the principal pension to which he is entitled, be paid an additional pension, the amount of which shall, in the case of an invalid with a degree of invalidity as specified in Column I hereunder, be equal to the amount of the principal pension payable to an invalid with a degree of invalidity as specified in the corresponding place in Column II hereunder: Column I Column II 50p.ct. to 59p.ct. 60 p.ct. 60p.ct. to 69p.ct. 70 p.ct. 70p.ct. to 79p.ct. 80 p.ct. 80p.ct. to 89p.ct. 90 p.ct. 90 p.ct. to 100 p.ct. 100 p.ct. (b) Where the income of an invalid as referred to in subsection (a) exceeds the amount of the principal pension payable to an invalid with a degree of invalidity of 50 per cent, he shall be paid the additional pension under this section less the amount by which his income exceeds the said maximum. (c) If the invalid has a spouse not living separa• tely from him, then, for the purposes of this section, one half also of the income of the spouse shall be regarded as income of the invalid. Additional 4B. Where in a particular month a person is entitled pension and to old-age pension under the National Insurance Law National Insurance.

98 (Consolidated Version), 5728-19681), an amount equal to the amount of the old-age pension shall be deducted from an additional pension payable to him for that month under section 4A. Applications 4C. A person who claims an additional pension under to competent section 4A shall submit an application to the competent authority. authority, accompanied by the evidence necessary to establish the claim, as prescribed by regulations. An additional pension shall not be paid for a period preceding the submission of the application by more than 120 days.". 6. Section 5 of the principal Law shall be replaced by the following Replacement section: of section 5. "Reduction of 5. Where an invalid entitled to a pension under this pension. Law has no relative dependent on him, and he is main• tained at the expense of the State or a local authority at an institution for invalids or elderly people or at any other similar institution, the pension shall be reduced by 75 per cent as from the fourth month that he is maintained at the institution and so long as he is maintained thereat".

7. In section 17 of the principal Law — Amendment of section 17. (1) the following subsection shall be inserted after subsection (g): "(h) A decision of the objections committee may be appealed to the Supreme Court sitting as a Court of Civil Appeal within thirty days from the day on which it was given or, if it was given in the absence of the applicant, within thirty days from the day on which it was delivered to him; but an appeal may only be made on a point of law."; (2) the words "and appeal" shall be added in the marginal note.

8. The following section shall be inserted after section 17 of the Addition of principal Law: section 17A. "Procedural 17A. The Minister of Justice may prescribe by regula-

regulations. tjons tjje procedure in objections and appeals under sec• tion 17.".

9. In section 19 of the principal Law, the words "and the filing of Amendment of appeal in the Supreme Court" shall be inserted at the end. section 19.

10. Section 22 of the principal Law shall be replaced by the following Replacement section : of section 22. "Offences. 22. (a) A person who knowingly gives to the competent authority, the medical board, the medical board of appeal or an objections committee false information as to a

1) Sefer Ha-Chukkim No. 530 of 5728, p. 108; LSI vol. XXII, p. 114.

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).

may, within twenty-one days from the day on which the Director- General's decision was notified to him, lodge objection with the Minister of Education and Culture.

Submission of 21. In every school year the holder of a licence shall, at the time and list of service in the manner prescribed by regulations, deliver to the Director-General workers. or a person empowered by him in that behalf a list of the service workers employed at the school.

Demand for 22. (a) The Director-General may require the holder of a licence to dismissal of dismiss a service worker immediately if one of the following applies: service worker. (1) The worker has been convicted of an offence calculated to infringe the security of the State; (2) the worker has been convicted of another offence involv• ing moral turpitude, and the Director-General is of the opin• ion that in view of such conviction he should not be employed at the school; (3) it has been proved to the Director-General that the worker's conduct has a harmful effect on pupils. (b) The holder of a licence shall comply with a demand of the Director-General under this section.

Opportunity 23. The Director-General shall not require the dismissal of a service to be heard. worker under section 22 without having given the worker concerned a suitable opportunity to be heard.

Delegation 24. The Director-General may delegate his powers under sections 22 of powers. and 23 to another person.

Objection. 25. A service worker who considers himself aggrieved by a demand for his dismissal under section 22 may, within twenty-one days from the day on which the demand was notified to him, lodge objection with the Minister of Education and Culture.

Approval of em• 26. A physician or nurse shall not be employed in a school without the ployment of approval of the Health Authority. physician or nurse. Certificate 27. (a) A person shall not employ an educational worker or service from Health worker unless such worker possesses a written certificate from the Health Authority. Authority to the effect that such Authority has no objection to his employ• ment from the point of view of health. (b) The Health Authority may restrict, or limit the period of validity of, a certificate under subsection (a). (c) The Minister of Health may make regulations concerning medical examinations of workers for the purposes of a certificate under this section.

200 CHAPTER FOUR : MISCELLANEOUS PROVISIONS

28. (a) The Minister of Education and Culture may issue to the Inspection of holder of a licence directions which, in the opinion of the Minister, are school. necessary in order to ensure that the education provided at the school is based on the principles set out in section 2 of the State Education Law, 5713-19531).

(b) The curriculum, textbooks, reference books, teaching aids and teaching achievements of the school shall be subject to the inspection of the Minister of Education and Culture and shall conform to the general directions obtaining in that type of school. (c) The Director-General shall from time to time approve the tuition fees of the school and the procedure for their collection, having regard to the type and character of the school.

29. The holder of a licence shall notify the Director-General of any Notification of change that has occurred in the particulars contained in the application changes. for a licence or in the accompanying documents.

30. The Director-General or a person appointed by him in that behalf, Right of entry. and the Health Authority, may, at any reasonable time, enter a school and the grounds thereof in order to ascertain whether the provisions of this Law, the regulations thereunder and the conditions of the licence have been complied with; and they may demand from the holder of the licence or the principal of the school any information required by them for carrying out their functions under this Law.

31. The Director-General or the Health Authority may, by written Demand for notice, require the holder of a licence to rectify within a reasonable time rectification of defects. any defect in a matter relating to the school or to sanitation therein if it appears to the Director-General or the Health Authority that the rectification is necessary in order to implement the provisions of this Law, the regulations thereunder or the conditions of the licence. The holder of the licence shall comply with a demand as aforesaid within the time specified therein.

32. (a) The Director-General may, in writing, order the closing of a school, if he is satisfied that one of the following applies: (1) The school is conducted without a licence; (2) the holder of the licence has refused to dismiss an educational worker on being required to do so under sec• tion 18(b); (3) a demand by the Health Authority for the rectification of defects under section 31 has not been complied with; (4) incitement against the State is carried on or tolerated at the school.

1) Sefer Ha-Chukkim of 5713, p. 137; LSI vol. VII, p. 113.

201 (b) The closing order shall be sent by registered post or by messenger to the holder of the licence or the person who conducts the school without a licence. (c) The closing order shall come into force at the expiration of thirty days from the day on which it is delivered under subsection (b), unless a later date is prescribed therein, and it shall remain in force until it is voided by the Director-General or the Court. (d) The holder of the licence or the person who conducts the school without a licence may, within thirty days from the date of receipt of the closing order under subsection (b), apply to the District Court in whose; area of jurisdiction the school is situated for the voidance of the order. The filing of the application shall not stay the carrying out of the order unless the Court otherwise decides. (e) The District Court may at any time void, vary or confirm the order.

Offences 33. (a) A person who contravenes the provisions of section 3 or does and penalties. not comp!y wjth a closing order under section 32 shall be liable to im• prisonment for a term of one year. (b) A person who contravenes the provisions of section 12, 16, 18(b), 22(b), 26 or 27 shall be liable to imprisonment for a term of six months. (c) A person who does not in due time comply with a demand for the rectification of defects under section 31 or contravenes any other provision of this Law shall be liable to a fine of 1,000 pounds. (d) Where an information has been filed for an offence under this section, the Court with which it has been filed may order the closing of the school until the termination of the trial. (e) The Court may, in addition to any fine it may impose, order the closing of the school. (f) A person who does not comply with a closing order under this section shall be dealt with as provided in section 6 of the Contempt of Court Ordinance1).

Saving of 34. Powers under this Law shall not derogate from powers under any powers and other enactment, and the fulfilment of obligations under this Law shall obligations. not release from obligations under another enactment.

Inapplicability 35. The Education Ordinance2) shall not apply to a school to which of Education this Law applies. Ordinance.

Transitional 36. Where a school to which this Law applies existed immediately provisions. before its awning into force, the provisions of this Law shall not apply to it until the expiration of six months from the day of its coming into

1) Laws of Palestine vol. I, cap. 23, p. 356 (English Edition). 2) Laws of Palestine vol. I, cap. 50, p. 623 (English Edition).

202 force or until a later date prescribed by the Minister of Education and Culture either generally or in respect of a particular school.

37. The Minister of Education and Culture is charged with the im• Implementation plementation of this Law and may make regulations as to any matter and regulations. relating to such implementation.

GOLDA MEIR ZALMAN ARANNE Prime Minister Minister of Education and Culture SHNEUR ZALMAN SHAZAR President of the State

(No. 57)

MILITARY CEMETERIES (AMENDMENT) LAW, 5729-1969*

1. In the Military Cemeteries Law, 5710-19501) (hereinafter referred to Addition of as "the principal Law"), the following section shall be inserted after section 3A. section 3:

"Temporary 3A. (a) A person appointed in that behalf by the military Minister of Defence may, notwithstanding anything con• cemeteries. tained in the Planning and Building Law, 5725-19652) or any plans or other regulations made thereunder, declare that an area of land described in the declaration shall be a temporary military cemetery. (b) A declaration under this section shall not require publication in Reshumot, and it shall, as far as possible, be made after consultation with the Director- General of the Ministry of Health and the District Com• missioner or with persons empowered by them respectively in that behalf. (c) When a declaration under this section has been made, the area of land to which the declaration relates may be used for the burial of soldiers who died at a time of fighting. (d) A person competent to declare a temporary military cemetery under this section may cancel the declaration at any time after all the bodies have been removed to other cemeteries, and he shall do so not later

Passed by the Knesset on the 21st Tammuz, 5729 (7th July, 1969) and published in Sefer Ha-Chukkim No. 565 of the 2nd Av, 5729 (17th July, 1969), p. 188; the Bill and an Explanatory Note were published in Hatza'ot CAoA No. 826 of 5729, p. 161. 1) Sefer Ha-Chukkim of 5710 p. 258; LSI vol. IV, p. 137. 2) Sefer Ha-Chukkim of 5725, p. 307; LSI vol. XIX, p. 330.

203 than the expiration of three years from the day of the coming into force of the declaration or from the day on which a soldier was last buried in that cemetery by virtue of this section, whichever is the later date.".

Additon of 2. The following sections shall be inserted after section 4 of the prin• sections 4A-4E. cipal Law:

"Place of 4A. Where a soldier dies during a period of fighting, burial during he may be buried without his relative being enabled to period of fighting. choose the place of burial as provided in section 4. Transfer of 4B. Where a soldier who died during a period of fight• soldier's ing was buried in a temporary military cemetery, the body from temporary following provisions shall apply to the transfer of his body military from the place of burial: cemetery. (1) A person appointed in that behalf by the Minister of Defence (hereinafter referred to as "the appointee") may, in consultation with the Director-General of the Ministry of Health or a person empowered by him in that behalf, order the body to be transferred to a military or civilian cemetery, as the relative of the deceased may choose; (2) the appointee shall notify the relative of the soldier in writing of his intention to order as specified in paragraph (1); if the relative does not within sixty days from the day on which the notification is delivered to him inform the ap• pointee which military or civil cemetery he has chosen for the burial of the soldier, the soldier's body shall be buried in a military cemetery desig• nated by the appointee; the same shall apply where the soldier has no relatives or where his relatives or their addresses are unknown; (3) the appointee shall not order the transfer of a body under paragraph (1) before the expiration of eleven months from the day on which the soldier was buried, and he shall order the transfer not later than the expiration of three years from that day.

Transfer of 4C. Where a soldier who died during a period of soldier's body fighting was buried in a military or civilian cemetery not otherwise than from chosen by his relative, the following provisions shall apply temporary to the transfer of his body from the place of burial: military (1) The appointee may, in consultation with the cemetery. Director-General of the Ministry of Health or a person empowered by him in that behalf, order the body to be transferred to a military or civilian cemetery, as the relative of the deceased may choose;

204 (2) the appointee shall notify the relative of the soldier in writing of his right to choose another cemetery to which the body of the soldier shall be transferred; if the relative does not within six months from the day on which the notification is delivered to him inform the appointee which military or civilian cemetery he has chosen for the burial of the soldier, the appointee shall not order a transfer of the body under paragraph (1);

(3) the appointee shall not order the transfer of a body under paragraph (1) before the expiration of eleven months from the day on which the soldier was buried and, subject to the provisions of subsec• tion (2), he shall order the transfer at the request of the relative not later than the expiration of three years from that day.

Notification 4D. The appointee shall notify a registration officer to registration under the Population Registry Law, 5725-19651), for the officer. purposes of registration under that Law, to which military or civilian cemetery the body of a soldier who died during a period of fighting has been transferred.

Status of 4E. For the purposes of section 8 and 10, a temporary temporary military cemetery shall have the status of a military military cemetery.". cemetery.

3. The following shall be inserted at the end of section 5 of the Amendment of principal Law: section 6- "(g) This section shall not apply to the transfer of bodies under sections 4B and 4C".

GOLDA MEIR MOSHE DAYAN Prime Minister Minister of Defence

SHNEUR ZALMAN SHAZAR President of the State

1) Sefer Ha-Chukkim of 5725, p. 270; LSI vol. XIX, p. 288.

205 (No. 58)

ESTATE DUTY (AMENDMENT No. 4) LAW, 5729-1969*

Amendment of 1. In section 20(a)(2)(a) of the Estate Duty Law, 5709-19491) (herein• section 2C. after referred to as the "the principal Law"), the words "in respect of all the child's or grown-up child's children together" shall be replaced by the words "in respect of each child of the child or grown-up child".

Amendment of 2. In section 130(b) of the principal Law, the words "a Magistrate" section 13C. shall be replaced by the words "a Judge of a Magistrates' Court".

Applicability. 3. Secdon 2C(a)(2)(a) of the principal Law, as amended by this Law, shall apply also to property of the estate of a person who died before the coming into force of this Law if a succession order has not yet been made.

GOLDA MEIR ZEEV SHAREF Prime Minister Minister of Finance SHNEUR ZALMAN SHAZAR President of the State

(No. 59)

Y AD YITZHAK BEN-ZVI LAW, 5729-1969**

Establishment 1. There is hereby established Yad Yitzhak Ben-Zvi (the Yitzhak of Yad Yitzhak Ben-Zvi Memorial) as a statutory institution. Ben-Zvi. Objects. 2. The objects of Yad Yitzhak Ben-Zvi are — (1) to deepen the people's consciousness of the continuity of Jewish settlement in Eretz Israel and for that purpose to foster research on the history of that settlement; (2) to further research on Jerusalem; (3) to further research on the history of the Jewish communities in Eastern countries; (4) to reflect the personality of Yitzhak Ben-Zvi as President of the State and his activity in the Zionist Movement, the Labour Move• ment, the Yishuv (Jewish community in Eretz Israel) and the State.

* Passed by the Knesset on the 21st Tammuz, 5729 (7th July, 1969) and published in Sefer Ha-Chukkim No. 565 of the 2nd Av, 5729 (17th July, 1969), p. 190; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 824 of 5729, p. 158. 1) Sefer Ha-Chukkim of 5709, p. 187 — LSI vol. Ill, p. 95; Sefer Ha-Chukkim of 5716, p. 45 — LSI vol. X, p. 40; Sefer Ha-Chukkim of 5717, p. 143 — LSI vol. XI, p. 152; Sefer Ha-Chukkim of 5724, p. 179 — LSI vol. XVIII, p. 179. Passed by the Knesset on the 23rd Tammuz, 5729 (9th July, 1969) and published in Sefer Ha-Chukkim No. 568 of the 3rd Av, 5729 (18th July, 1969), p. 192; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 840 of 5729, p. 271.

206 3. The seat of Yad Yitzhak Ben-Zvi shall be in Jerusalem, in the house Seat. in which Yitzhak Ben-Zvi performed his duties as President of the State.

4. Yad Yitzhak Ben-Zvi shall have — Agencies. (1) a Council, with a membership of not less than twenty-five and not more than thirty-one, which shall include a Member of the Knesset elected by the Knesset Committee on Education and Culture, as well as representatives of the following bodies: (a) the Government; (b) the World Zionist Organization; (c) the Municipality of Jerusalem; (d) the universities named in the Schedule; (e) the General Federation of Labour in Eretz Israel; the Prime Minister may, upon the recommendation of the Council, add to the Schedule; (2) a Managing Committee consisting of members of the Council, with a membership of not less than seven and not more than nine, which shall include at least one representative of each of the bodies mentioned in subparagraphs (a), (b), (c) and (e) of paragraph (1) and one representative of the Hebrew University in Jerusalem.

5. (a) The Prime Minister shall appoint the first Council of Yad Initial Yitzhak Ben-Zvi, the first Managing Committee, the first Chairman of appointments. the Council and the first Chairman of the Managing Committee. Notice of the appointments shall be published in Reshumdt. (b) The first Council shall hold office for two years from the date of its appointment.

6. (a) The Managing Committee appointed under section 5 shall, Rules. within one year from the date of its appointment and after consultation with the Council, make the rules of Yad Yitzhak Ben-Zvi, which shall contain, inter alia, provisions as to the activities of Yad Yitzhak Ben-Zvi, the composition of the Council, the Managing Committee and the other agencies, their periods of tenure, the period and discontinuance of membership in them, their powers and duties, their procedure, including provisions as to a quorum, and the modes of determining the budget and of introducing variations and amendments in the Rules.

(b) The Rules shall be submitted for the approval of the Govern• ment after consultation with the Knesset Committee on Education and Culture. (c) Pending approval of the Rules, the Council and the Managing Committee shall themselves prescribe their procedure.

7. Within the scope of its powers under this Law and the Rules, Independence. Yad Yitzhak Ben-Zvi shall be at liberty to conduct its affairs as the Management Committee may determine.

207 Body 8. Yad Yitzhak Ben-Zvi is a body corporate, competent in respect of corporate. any obligation, right or legal act.

Saving. 9. The existence and powers of the Council and the Managing Com• mittee and the validity of their acts shall not be affected by a vacancy of the place, or a defect in the appointment or continued tenure, of any member thereof.

Exemption 10. For the purposes of the Income Tax Ordinance1), Yad Yitzhak from taxes. Ben-Zvi shall be regarded as an institution of a public character for educational and cultural purposes, and every one of its transactions and all its property shall be exempt from every fee, rate or other compulsory payment due to the State or a local authority. The Yad Yitzhak Ben-Zvi Company shall, in respect of its property and transactions connected with the establishment and maintenance of the buildings of Yad Yitzhak Ben-Zvi and with educational and cultural activities, enjoy the same exemptions as are granted to Yad Yitzhak Ben-Zvi by this section.

Implementation. 11. The Prime Minister is charged with the implementation of tiiis Law and may make regulations for such implementation.

SCHEDULE (Section 4(1))

1. The Hebrew University in Jerusalem; 2. The University of Tel Aviv; 3. Bar-Han University. GOLDA MEIR Prime Minister SHNEVR ZALMAN SHAZAR President of the State

(No. 60)

MILITARY JUSTICE (AMENDMENT No. 4) LAW, 5728-1969*

Amendment of 1. In section 410(b) of the Military Justice Law, 5715-19558) (herein- section410. af^. referred to as "the principal Law"), after the word "direct", there shall be inserted the words "by direction published in the Army in any manner he thinks fit".

» 1) Dinei Medinat Yisracl (Nusaeh Chadask) No. 6, p. 120; NV vol. I, p. 145. * Passed by the Knesset on the 23rd Tammuz, 5729 (9th July, .1969) and published in Sefer Ha-Chukkim No. 566 of the 3rd Av, 5729 (18th July, 1969), p. 193; the Bill and Explanatory Note were published in Haiza'ot Chok No. 818 of 5729, p. 131. 2) Sefer Ha-Chukkim of 5715, p. 171 — LSI vol. IX, p. 184; Sefer Ha-Chukkim of 5718, p. 122 — LSI vol. XII, p. 140; Sefer Ha-Chukkim of 5723, p, 120 — LSI vol. XVII, p. 143; Sefer Ha-Chukkim of 5724, p. 148 — LSI vol. XVIII, p. 140.

208 2. The following section shall be inserted after section 410 of the Addition of principal Law: section 41 OA.

"Bench. 41 OA. (a) The president of a district court martial in the district of which a summary trial is permitted to be held, may direct that one or more benches of the district court martial shall consist of a single judge, and the direction shall be in force so long as a summary trial is Dermitted to be held in that district. Where the direction pxDires after a trial has begun to be before a single judge, the trial may continue to be so held until its completion. (b) The president of the district court martial shall designate for the task of single judge a legally qualified judge qualified to be appointed president of a district court martial. (c) A single judge shall have all the powers of a district court martial and of a presiding judge : Provided that — (1) a single judge shall not try offences punishable by imprisonment for a term of more than ten years and shall not impose imprisonment for a term exceeding three years; (2) the president of the district court martial may limit the jurisdiction of a single judge to a particular class of offences desig• nated in the direction.".

3. The following section shall be inserted after section 518 of the Addition of principal Law : section S18A-

"Indication 518A. (a) A person shall not use an indication of a of military military rank, conferred by Army Orders, in such a rank of person who manner as to attribute that rank to himself or to another is not — irrespective of whether that rank has in fact been con• a soldier. ferred or not — unless the holder of the rank is at the time a soldier, within the meaning of section 1. (b) The Minister of Defence shall, with the approval of the Foreign Affairs and Security Committee of the Knesset, prescribe the conditions, circumstances and manner on or in which an indication of a rank conferred by Army Orders may be used notwithstanding the prohibition imposed by subsection (a). (c) A person who contravenes the provisions of subsection (a) shall be liable to imprisonment for a term of six months or to a fine of five hundred pounds.".

4. The following shall be inserted at the end of section 521 of the Amendment of principal Law: "and a soldier who has committed an offence under sect»°n 521. section 518A shall be brought to trial as if it were a military offence".

209 Commencement. 5. Subsections (a) and (c) of section 518A of the principal Law shall come into force on the 17th Av, 5729 (1st August, 1969).

GOLDA MEIR MOSHE DAYAN Prime Minister Minister of Defence SHNEUR ZALMAN SHAZAR President of the State

(No. 61)

CRIMINAL PROCEDURE (AMENDMENT) LAW, 5729-1969*

Addition of 1. In the Criminal Procedure Law, 5725-19651), the following section section 49A. shall be inserted after section 49 :

"Discharge 49A. (a) Where a suspect has been released on bail and of bail where an information is not filed against him within one hundred no informa• tion is filed. and eighty days from the date of his release on bail, then, unless the period of bail has been extended under section (b), he and his sureties shall be discharged from their bail, and if a deposit has been given it shall be returned.

(b) So long as the suspect and his sureties have not been discharged from their bail, the Court may, on the application of the Attorney-General or his representa• tive, extend the period referred to in subsection (a) by an additional period not exceeding one hudred and eighty days; and it may again extend it by an additional period not exceeding ninety days if an application to that effect is filed by the Attorney General.".

GOLDA MEIR GOLDA MEIR Prime Minister Acting Minister of Justice

SHNEUR ZALMAN SHAZAR President of the State

* Passed by the Knesset on the 23rd Tammuz, 5729 (9th July, 1969) and published in Sefer Ha-Chukkim No. 566 of the 3rd Av, 5729 (18th July, 1969), p. 194; the Bill and an Explanatory Note were published in Hatidot Chokiio. 831 of 5729, p. 218. 1) Sefer Ha-Chukkim of 5725, p. 161; LSI vol. XIX, p. 158. (No. 62)

KNESSET ELECTIONS (CONSOLIDATED VERSION) (AMEND• MENT) LAW, 5729-1969*

1. In section 19 of the Knesset Elections Law (Consolidated Version), Amendment of 5729-19691) (hereinafter referred to as "the Elections Law"), the expres• section 19. sion "within the meaning of section 25(a)" shall be added at the end of subsection (d).

2. In section 24 of the Elections Law, the following subsection shall Amendment of be inserted after subsection (f) : section 24. "(g) In matters regarding which a power or function is assigned to the chairman of the Central Committee in association with the vice-chairmen, the provisions of subsections (a) and (b) relating to the Central Committee shall apply mutatis mutandis.".

3. In section 56(a) of the Elections Law, paragraphs (1) to (3) shall be Amendment of section 56. replaced by the following paragraphs: "(1) State employees in grade 16 or over of the uniform grading; (2) State employees in a professional grade of which the commenc• ing basic salary is not lower than the commencing basic salary of grade 16 of the uniform grading (any such professional grade hereinafter referred to as a "parallel grade") ; (3) State employees in a grade lower than grade 16 of the uniform grading or a parallel grade if a range of grades comprising grade 16 of the uniform grading or a parallel grade has been fixed for their posts;".

4. In section 57(h) of the Elections Law, in the first sentence, the Amendment of words "on a form prescribed by regulations" shall be inserted after the section 57. words "shall be signed".

5. In section 70(c) of the Elections Law, the words "in respect of Amendment of which a notice has been published under section 68(d)" shall be replaced section70. by the words "prescribed under section 68(c)".

6. (A linguistic correction not affecting the English version) Amendment of section 74.

7. In section 79(b) of the Elections Law, the words "the progress of the Amendment of voting" shall be inserted after the words "the opening of the ballot box". section 79.

8. (A linguistic correction not affecting the English version) Amendment of section 107.

* Passed by the Knesset on the 23rd Tammuz, 5729 (9th July, 1969) and published in Sefer Ha-Chukkim No. 567 of the 7th Av, 5729 (22nd July, 1969), p. 196; the Bill and an Explanatory Note were published in HaUa'ot Chok No. 834 of 5729, p. 226. 1) Sefer Ha-Chukkim No. 556 of 5729, p. 103; supra, p. 110.

211 Amendment of 9. In section 130(a) of the Elections Law, the words "or the Keren section 130. Kayemet Le-Israel" shall be replaced by the words "the Keren Kayemet ."Israel or the Broadcasting Authority־Le

Amendment of 10. In section 132(a) of the Elections Law, the expression "the 52nd section 132. day" shall be replaced by the expression "the 42nd day".

Temporary 11. For the purposes of the elections to be held in the month of provisions. Cheshvan, 5730 —

(1) the words "and members of the Police Force" shall be deemed to be added at the end of the definition of "soldier" in section 89;

(2) section 90(c) shall be deemed to be replaced by the following subsection: "(c) Voting at polling stations for soldiers shall take place during such hours, out of seventy-two hours including the day of the elections, as may be prescribed by or under regulations.";

(3) the words "or his police officer's pass" shall be deemed to be added at the end of section 91;

(4) the following section shall be deemed to be added in Chapter Nine after section 95 :

"Voting by 95A. The Minister of the Interior may, in consultation certain with the Minister of Defence and with the consent of the employees. chairman of the Central Committee in association with the vice-chairmen, issue directions, either by regulations or otherwise, as to anything relating to the voting procedure of —

(1) persons who on election day are in regions designated for the purposes of this paragraph by the Minister of the Interior, in consultation and with consent as aforesaid, within the areas held by the Defence Army of Israel, being employees of the Defence Army of Israel employed in those regions and whose names are included in a list submitted by the Chief of the General Staff to the Chairman of the Central Committee;

(2) other employees who on election day are in regions, designated for the purposes of this para­ graph by the Minister of the Interior, in consulta­ tion and with consent as aforesaid, within the areas held by the Defence Army of Israel;

such directions shall be brought to the knowledge of those concerned as the Minister of the Interior, in consultation and with consent as aforesaid, may see fit; they shall not require publication in Reshumot.";

212 (5) wherever under section 90 or 145 any power for the purposes of Chapter Nine is vested in the Central Committee, such power shall be deemed to be vested in the chairman of the Central Com• mittee in association with the vice-chairmen.

GOLDA MEIR HAIM MOSHE SHAPIRO Prime Minister Minister of the Interior

SHNEUR ZALMAN SHAZAR President of the State

(No. 63)

LOCAL AUTHORITIES (ELECTIONS) (AMENDMENT No. 4) LAW, 5729-1969*

1. In section 25 of the Local Authorities (Elections) Law, 5725-19651) Amendment of (hereinafter referred to as "the principal Law"), subsections (c) and section 25. (d) shall be replaced by the following subsection : "(c) For the purpose of the party composition of the election com• mittee and the submission of a list of candidates, no change in the party composition of the outgoing council which occurs after the 66th day before election day shall be taken into account.".

2. The following section shall be inserted after section 42A of the Addition of principal Law : section 42B.

"Discontinu• 42B. Where the name of a State employee, or of a ance of soldier in the permanent service of the Defence Army of service. Israel, is included in a list of candidates, his service shall be discontinued from the date of submission of the list of candidates until election day.".

3. In section 63 of the principal Law, the following subsection shall Amendment of be inserted after subsection (d): section 63. "(e) Where the voting envelope of a voter who has voted under Chapter Eight reaches the local election committee after the 10th day following election day, the vote shall be invalid.".

* Passed by the Knesset on the 28th Tammuz, 5729 (14th July, 1969) and published in Sefer Ha-Chukkim No. 567 of the 7th Av, 5729 (22nd July, 1969), p. 197; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 834 of 5729, p. 228. 1) Sefer Ha-Chukkim of 5725, p. 248 — LSI vol. XIX, p. 261; Sefer Ha- Chukkim of 5726, p. 71 — LSI vol. XX, p. 66; Sefer Ha-Chukkim No. 549 of 5729, p. 36 — supra, p. 40; Sefer Ha-Chukkim No. 555 of 5729, p. 97 — supra, p. 106.

213 Amendment of 4. In section 64(a) of the principal Law, the words "the progress of section 64. the voting" shall be inserted after the words "the opening of the ballot box".

Amendment of 5. In section 75(a) of the principal Law, the words "or the Keren section 75. Kayemet Le-Yisrael" shall be replaced by the words "the Keren Kayemet Le-Yisrael or the Broadcasting Authority".

Temporary 6. For the purposes of the elections to be held in the month of provisions. Cheshvan, 5730 — (1) the words "and members of the Police Force" shall be deemed to be added after the words "or on permanent service in the Defence Army of Israel" in section 78 of the principal Law, and the word "all" shall be deemed to be inserted before the words "in this chapter referred to as soldiers" " in the said section;

(2) section 80(a) of the principal Law shall be deemed to be replaced by the following subsection : "(a) Voting at polling stations for soldiers shall take place during such hours, out of seventy-two hours which include the day of the elections, as have been prescribed by or under provisions enacted under section 79."; (3) the words "or his police officer's pass" shall be deemed to be added at the end of section 81(a) of the principal Law; (4) the following section shall be deemed to be added in Chapter Eight after section 84:

"Voting by 84A. (a) The Minister of the Interior may, in consulta• certain tion with the Minister of Defence, issue directions as to employees. anything relating to procedure for the voting of — (1) persons who on election day were in regions designated for the purposes of this paragraph by the Minister of the Interior, in consultation as aforesaid, out of the areas held by the Defence Army of Israel, being em• ployees of the Defence Army of Israel em• ployed in those regions and whose names are included in a list submitted by the Chief of the General Staff to the Minister of the Interior; (2) other employees who on election day are in regions designated for the purposes of this paragraph, subject to subsection (b), by the Minister of the Interior in consultation as aforesaid, out of the areas held by the Defence Army of Israel; such directions shall be brought to the knowledge of those concerned as the Minister of the Interior, in consultation as aforesaid, may think fit; they shall not require publica• tion in Reshumot:

214 (b) Where any regions, and locations for polling stations, have been designated for the purposes of section 11(4) of the Knesset Elections (Consolidated Version) (Amendment) Law, 5729-19691), those regions and loca• tions shall also be designated for the purposes of para• graph (2) of subsection (a).".

GOLDA MEIR HAIM MOSHE SHAPIRO Prime Minister Minister of the Interior SHNEUR ZALMAN SHAZAR President of the State

(No. 64)

ELECTIONS (MODES OF PROPAGANDA) (TEMPORARY PROVISION) LAW, 5729-1969*

1. The restrictions imposed by sections 6 and 7 of the Elections Temporary (Modes of Propaganda) Law, 5719-19592), shall not apply from the P10™'™• date of the coming into force of this Law until the day of the elections to the Knesset to be held in the month of Cheshvan, 5730.

GOLDA MEIR HAIM MOSHE SHAPIRO Prime Minister Minister of the Interior SHNEUR ZALMAN SHAZAR President, of the State

(No. 65)

ELECTIONS (MODES OF PROPAGANDA) (AMENDMENT No. 3) LAW, 5729-1969**

1. In the Elections (Modes of Propaganda) Law, 5719-57193) (herein- Amendment of after referred to as "the principal Law"), the following shall be added at sect'on 2• the end of section 2 : "However, the prohibitions and restrictions imposed by sections 2A, 3, 4, 12 and 13 shall apply also outside the said period.".

1) Sefer Ha-Chukkim No. 567 of 5729, p. 196; supra, p. 211. * Passed by the Knesset on the 29th Tammuz, 5729 (15th July, 1969) and published in Sefer Ha-Chukkim No. 567 of the 7th Av, 5729 (22nd July, 1969), p. 199; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 848 of 5729, p. 330. 2) Sefer Ha-Chukkim of 5719, p. 138; LSI vol. XIII, p. 146. ** Passed by the Knesset on the 29th Tammuz, 5729 (15th July, 1969) and published in Sefer Ha-Chukkim No. 567 of the 7th Av, 5729 (22nd July, 1969), p. 199; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 839 of 5729, p. 266. 3) Sefer Ha-Chukkim of 5719, p. 138 — LSI vol. XIII, p. 146; Sefer Ha- Chukkim of 5721, p. 166 — LSI vol. XV, p. 178; Sefer Ha-Chukkim of 5729, p. 12 — supra, p. 17.

215 Amendment of 2. In section 5 of the principal Law, the words "or television" (in the section 5. marginal note "and television") and "or televised" shall be inserted after the words "cinematic projection" and "projected in any cinema", re• spectively, and the words "This section shall not apply to election propa• ganda broadcast by television under section 15A" shall be added at the end.

Amendment of 3. In section 8 of the principal Law, the words "The prohibition of section 8. the exhibition of films shall not apply to election propaganda broadcast by television under section 15A" shall be added at the end.

Amendment of 4. In section 15 of the principal Law — section 15. (1) the words "by radio" shall be added at the end of the marginal note; (2) the words "for the transmission of election speeches" shall be replaced by the words "for the transmission of election propaganda".

Addition of 5. The following sections shall be inserted after section 15 of the prin• sections 15A cipal Law: and 15B. "Regulation 15A. (a) The chairman of the Central Election Com• of television mittee for the Knesset shall, after consultation with that broadcasts. Committee and with the Director-General of the Broad• casting Authority, prescribe the times to be devoted to the broadcasting of election propaganda by television, the coordination of such times with the ordinary programmes of television broadcasts, and the times to be allotted to each of the parties and candidates' lists. Each party or candidates' list shall be given ten minutes, and each party represented in the outgoing Knesset shall be given four additional minutes in respect of each member it has in the Knesset.

(b) There shall be no broadcasts under this section on prescribed days of rest, within the meaning of the Law and Administration Ordinance, 5708-19481). (c) Nothing shall be broadcast under this section except election propaganda produced by the parties and candidates' lists at their own expense and approved by the chairman of the Central Election Committee.

Exemption 15B. The Broadcasting Authority shall bear no civil or from criminal responsibility for election propaganda broadcast responsibility. under this Law.".

Amendment of 6. In section 16 of the principal Law, the words "in the news broad• section 16. casts of "Kol Israel" " shall be replaced with the words "in the news broadcasts by radio and television".

1 ) I.R. of 5708, Suppl. I, No. 2, p. 1 — LSI vol. I, p. 7.

216 7. The following sections shall be inserted after section 16 of the Addition of principal Law: sections 16A and 16B. "Broadcasts for 16A. (a) The chairman of the Central Election Com• explanation mittee for the Knesset shall, after consultation with that and guidance. Committee and with the Director-General of the Broad• casting Authority, prescribe the times, within the pro• grammes of radio and television broadcasts, to be devoted to explanations on his behalf to voters concerning the procedure of voting in elections to the Knesset, and to members of Polling Committees concerning the procedure of carrying out their functions.

(b) The Minister of the Interior shall, after con• sultation with the Director-General of the Broadcasting Authority, prescribe the times, within the programmes of radio and television broadcasts, to be devoted to explana• tions on his behalf to voters concerning the procedure of voting in elections to local authorities (in general), and to members of Polling Committees concerning the procedure of carrying out their functions.

(c) Broadcasts under subsections (a) and (b) shall not in the aggregate last longer than one hour on the radio and one hour on television. The chairman of the Central Election Committee for the Knesset shall coordi• nate broadcasts under this section with the Minister of the Interior.

Broadcasts 16B. The Broadcasting Authority shall collect no pay• to be free of ment for broadcasts under this Law.". charge.

8. The following section shall be inserted after section 20 of the prin• Addition of cipal Law: section 20B.

"Immunity as 20B. The provisions of section 137 of the Knesset to relief. Elections Law (Consolidated Version), 5729-19691), shall apply to any act or omission under section 15, 15A, 16 or 16A.".

GOLDA MEIR HAIM MOSHE SHAPIRO Prime Minister Minister of the Interior SHNEUR ZALMAN SHAZAR President of the State

1) Sefer Ha-Chukkim No. 556 of 5729, p. 103; supra, p. 110.

I 217 (No. 66)

KNESSET AND LOCAL AUTHORITIES ELECTIONS (5730) (FINANCING, LIMITATION OF EXPENSES AND AUDIT) (AMENDMENT) LAW, 5729-1969*

Amendment of 1. In section 1 of the Knesset and Local Authorities Elections (5730) section 1. 1 (Financing, Limitation of Expenses and Audit) Law, 5729-1969) ) (hereinafter referred to as "the principal Law") — (1) in the definition of "party", the words "if it has notified the Chairman of the Knesset as specified in section 2(a) (2)" shall be added after the words "Second Schedule"; (2) the following definition shall be inserted after the definition of "representatives": " "new list" means a candidates' list for the Knesset, within the meaning of the Knesset Elections Law (Consolidated Version), ,("hereinafter referred to as "the Elections Law) (־'5729-1969 other than a list submitted by a party.";

(3) in the definition of "election expenses", the words "or the new list" shall be added after the word "party", and in the definition of "representatives", the words "or representatives of a new list" shall be added after the expression "party representatives".

Amendment of 2. Section 2(a)(2) of the principal Law shall be replaced by the follow­ section 2. ing paragraph : "(2) the party named in the Second Schedule may notify the Chairman of the Knesset, through its Knesset group, not later than the 17th Av, 5729 (1st August, 1969) that it is asking for an alloca­ tion out of the Treasury for the financing of election expenses, and upon its doing so, it shall be allocated an amount of 480,000 pounds; if it does not notify as aforesaid and it submits a candidates' list for the Knesset, such list shall be treated as a new list.".

Addition of 3. The following section shall be inserted after section 2 of the principal section 2A. Law:

"Financing 2A. Subject to the provisions of section 13A, each new of new list which in the elections to the Seventh Knesset obtains lists. at least one seat shall be paid out of the Treasury, through the Chairman of the Knesset, an amount of 120,000 pounds, multiplied by the number of seats obtained by it, for the financing of election expenses.".

* Passed by the Knesset on the 29th Tammuz, 5729 (15th July, 1969) and published in Sefer Ha-Chukkim No. 567 of the 7th Av, 5729 (22nd July, 1969), p. 201; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 846 of 5729, p. 319. 1) Sefer Ha-Chukkim No. 550 of 5729, p. 48; supra, p. 53. 2) Sefer Ha-Chukkim tio. 556 of 5729, p. 103; supra, p. 110.

218 4. In section 5 of the principal Law — Amendment of section 5. (1) The following subsection shall be inserted after subsection (a): "(al) On the day of the submission of its candidates' list to the Central Election Committee, each new list shall notify the Chairman of the Knesset, through its representative, within the meaning of section 59 of the Elections Law, of the names of its representatives empowered to act on its behalf for the purposes of this Law. The notification of the appointment of the repre• sentatives shall be accompanied by their written consent.";

(2) the following subsection shall be inserted after subsection (c): "(d) A new list shall not have to include among its representa• tives a Member of the Knesset, whose place shall be taken by the first person on the list, and for the purposes of subsections (b) and (c), a declaration and notice by the representative of the list* shall take the place of a declaration and notice by a party.".

5. The following section shall be inserted after section 7 of the prin• Addition of section 7A. cipal Law:

"Keeping of 7A. The representatives of a new list shall, on the date books and of submission of the list, furnish the Chairman of the accounts by new list. Knesset, with a declaration under their hands that the new list has made all the necessary arrangements to ensure the keeping of proper accounts of the election expenses in accordance with the directives of the State Comptroller, including the opening of a special bank account for that purpose; the name of the bank and the number of the account shall be indicated in the declaration.".

6. Section 9 of the principal Law shall be re-marked as section 9(a). Amcndsncnt of section 9. and the following subsection shall be inserted thereafter : "(b) A new list shall, from the date of submission of the list, com• ply with the provisions of subsection (a) as if it were a party.".

7. Section 10 of the principal Law shall be re-marked as section 10(a), Amendment of and the following subsection shall be inserted thereafter: section 1Ü. "(b) The provisions of subsection (a) shall apply to a new list from the date of its submission, and every reference in that subsection to a party shall be deemed to be also a reference to a new list. (c) Section 137 of the Elections Law shall apply to an opinion under this section.".

I.e. its representative for the purposes of section 59 of the Elections Law, whom the original denotes by a different expression from a representative for the purposes of election financing. (Tr.).

219 Amendment of 8. In section 12 of the principal Law — section 12. (1) the words "or the new list which has obtained at least one seat" — shall be inserted after the words "the party" in subsec• tion (a); (2) in subsection (b) — (a) the words "or of any new list" shall be inserted after the words "or of any party" in the opening passage; (b) the words "or the new list" shall be inserted after the words "the party" in paragraph (1); (c) the words "or that the election expenses of the new list were within the limits of 160,000 pounds, multiplied by the number of seats obtained by it" shall be added at the end of paragraph (2).

Addition of 9. The following section shall be inserted after section 13 of the section 13 A. principal Law:

"Transfer of 13A. (a) Where a new list is entitled to an allocation allocation to under section 2A, and the State Comptroller has indicated new lists. in his report under section 12(b) that it has kept a set of accounts in accordance with his directions, the Chairman of the Knesset shall, subject to subsection (b), transfer to its bank account the amount of the allocation destined for it; this amount shall not be attachable save for debts arising out of election expenses. (b) Where in respect of any new list the State Comptroller has not, in his report submitted under section 12(b), reached the conclusion that its election expenses were within the limits of 160,000 pounds, multiplied by the number of seats obtained by it, 30 per cent shall be deducted from the amount of the allocation to which it is entitled under section 2A, and the balance shall be transferred as provided in subsection (a).".

GOLDA MEIR Prime Minister SHNEUR ZALMAN SHAZAR President of the State

220 (No. 67)

ELECTIONS (CONFIRMATION OF VALIDITY OF LAWS) LAW, ״5729-1969

1. (a) For the removal of doubt it is hereby declared that the provi- Confirmation sions contained in the Knesset Elections Laws are valid for the purposes of validity, of any law and of any matter or thing as from the date of their coming into force. (b) In this section, "Knesset Elections Laws" means the Knesset Elections Law (Consolidated Version), 5729-19691), the Elections (Modes of Propaganda) Law, 5719-19592), the Knesset and Local Authorities Elections (5730) (Financing, Limitation of Expenses and Audit) Law, 5729-1969s), and every such other provision of a Law as relates to Knesset elections or to Knesset election propaganda, all as in force upon the coming into force of this Law. GOLDA MEIR Prime Minister SHNEUR ZALMAN SHAZAR President of the State

(No. 68)

NATIONAL INSURANCE (AMENDMENT No. 2) LAW, 5729-1969**

1. (A terminological amendment not affecting the English version)

2. In section 1 of the National Insurance Law (Consolidated Version), Amendment of 5728-19684) (hereinafter referred to as "the principal Law") — section -• (1) in the definition of "child", the words "but does not include a married girl, unless she belongs to a class of cases designated by reg­ ulations" shall be added at the end; (2) in the definition of "index", the expression "cost-of-living index" shall be replaced by the expression "consumer price index".

* Passed by the Knesset on the 29th Tammuz, 5729 (15th July, 1969) and published in Sefer Ha-Chukkim No. 568 of the 8th Av, 5729 (23rd July, 1969), p. 204; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 846 of 5729, p. 322. 1) Sefer Ha-Chukkim No. 566 of 5729, p. 103; supra, p. 110. 2) Sefer Ha-Chukkim of 5719, p. 138; LSI vol. XIII, p. 146. 3) Sefer Ha-Chukkim No. 550 of 5729, p. 48; supra, p. 53. ** Passed by the Knesset on the 1st Av, 5729 (16th July, 1969) and published in Sefer Ha-Chukkim No. 569 of the 10th Av, 5729 (25th July, 1969), p. 206; the Bill and an Explanatory Note were published in Hatta'ot Chok No. 808 of 5729, p. 60. 4) Sefer Ha-Chukkim of 5728, p. 108 — LSI vol. XXII, p. 114; Sefer Ha- Chukkim of 5729, p. 70 — supra, p. 84.

221 Amendment of 3. In section 4 of the principal Law, the words "or by personal section 4. notification other than by post" shall be inserted after the words "by post".

Addition ot 4. The following sections shall be inserted after section 4 of the principal sections 4A Law: and 4B. "Power to 4A. (a) The Minister may, with the approval of the classify. Labour Affairs Committee of the Knesset, prescribe by order that insured persons engaged in a certain type of work or subject to special working conditions, as defined in the order, shall, for the purposes of this Law, be regarded as employees or as self-employed persons or as persons who are neither employees nor self-employed persons. For this purpose, work limited in scope or as to the time required for doing it shall also be regarded as a type of work. (b) An order under subsection (a) prescribing who shall be regarded as employees shall also prescribe who shall be regarded as their employers. (c) An order under this section shall have effect notwithstanding anything provided elsewhere in this Law.

The State 4B. The State as an employer shall, for the purposes as employer. of this Law, be treated like any other employer.".

Amendment of 5. Section 11 of the principal Law shall be re-marked as section 11(a), section 11. and the following subsection shall be inserted thereafter : "(b) Subject as provided in section 146, the Institute shall continue to pay the pension to a person who has ceased to be insured.".

Amendment of 6. In section 13 of the principal Lav.— section 13. (1) the words "is considerably reduced" shall be replaced by the words "has considerably lessened or has been limited from the outset"; (2) the words "except a pension under Chapter Six" shall be inserted after the words "provided that his annual income from employment, or the pursuit of an occupation, as aforesaid".

Amendment of 7. In section 15 of the principal Law, subsection (b) shall be replaced section 15. by the following subsection : "(b) An insured woman to whom one of the following applies : (1) she has been divorced or become a widow and on the date of her divorce or her becoming a widow she was fifty-five years of age or over; (2) she has become an Israel resident by virtue of entry into Israel while of the age of fifty-five years or over and is a married woman whose husband is not insured or an unmarried woman shall not require a qualifiying period under subsection (a).".

222 8. In section 17 of the principal Law — Amendment of section 17. (1) paragraph (l)(c) shall be replaced by the following subpara- "(c) if she is not yet sixty years of age — her income does graph: not exceed the amount indicated in item 2 of Table II;"; (2) paragraph (2) shall be replaced by the following paragraph: "(2) a child in respect of whom no pension is paid under Chapter Five;"; (3) the words "so long as he is so incapable" shall be added at the end of paragraph (3).

9. The following section shall be inserted after section 20 of the prin• Addition of section 20A. cipal Law:

"Definition 20A. For, the purposes of this article, "income" shall of income. have the meaning assigned to it by the Minister, by regula• tions, with the approval of the Labour Affairs Committee of the Knesset".

10. The following section shall be inserted after section 25 of the Addition of section 25A. principal Law :

"Pension to 25A. Notwithstanding anything provided in section 181, widow of old- a pension at the full rate specified in Table IV shall be age pension age. paid to a widow who has reached old-age pension age under section 12.".

11. Section 29 of the principal Law shall be replaced by the following- Replacement of section : section 29.

"Funeral 29. (a) Where a person who died in Israel or an grant. Israel resident who died abroad has been buried in Israel, the Institute shall pay to the local authority or public institution which dealt with the funeral a funeral grant, the amount and mode of payment of which shall be prescribed by regulations with the approval of the Labour Affairs Committee of the Knesset. (b) Where a person insured under Chapter Two, or the spouse or child of such a person, has died and is buried abroad, the funeral grant shall be paid to the per• son prescribed by regulations. The amount shall not in this case exceed the amount of the funeral grant which would have been payable had the deceased been buried in Israel.".

12. In section 31 of the principal Law, subsection (a)(5) shall be Amendment of section 31. replaced by the following paragraph : "(5) a member of the Red Shield of David in Israel, a member of an organisation for first aid or for the prevention of damage to persons or property or for the care of the sick or of persons unable

223 to look after themselves and a voluntary member of an organisation dealing with funerals, provided that these organisations have been approved by the Minister for the purposes of this paragraph by notice published in Reshumot.".

Amendment of 13. In section 36 of the principal Law — section 36. :(the following paragraph shall be inserted after paragraph (2 (־(1 "(2A) it occurred in the course of the insured person's work by way of injury not resulting from the work and was caused by another person with an implement or other article situated at or very close to the place of work for the purposes of the work or situated there permanently though not for the purposes of the work, and the injured person had no part in causing the injury;";

(2) the following shall be inserted after the words "existing at his place of work" in paragraph (5): "or in the course of riding, driving or walking for the purpose of carrying out his functions as aforesaid or back again, provided that he did not substantially interrupt his riding, driving or walking and did not deviate from the customary route".

Amendment of 14. In section 53 of the principal Law, the following subsection shall section 53. be added after subsection (b): "(c) If variations in the maximum occur under section 167A, the amount specified in Table V shall be varied at the rate and from the date prescribed by the Minister by notice in Reshumot".

Amendment of 15. Section 55 of the principal Law shall be re-marked as section 55(a), section 55. and the following subsection shall be added thereafter : "(b) Where in the quarter preceding the day on which injury benefits are first due to him a person insured under section 31 (a] (3) or (5) also had income as an employee or self-employed person, there shall, for the purpose of calculating the ordinary wage under section 54, be taken into account his income as an employee or self-employed person or the income which under section 54(b)(2) is attributable to him as insured under section 31(a)(3) or (5), which­ ever is the larger amount.".

Amendment of 16. In section 58 of the principal Law, the words "that the insured section 56. person worked on that day" in subsection (b) shall be replaced by the words "that the insured person did not work on that day".

Amendment ot 17. In section 61 of the principal Law, subsection (a) shall be replaced section 61. by the following subsection : "(a) A physician or a Medical Board, on the application of the invalid or the Institute, all as may be prescribed by regulations, shall —

224 (1) determine whether and to what extent the invalidity arises out of the employment injury; (2) on the basis of tests and in accordance with the prin• ciples prescribed by the Minister by regulations after con• sultation with the Minister of Health determine the degree of invalidity for the purposes of this article.".

18. In section 64 of the principal Law, the following subsection shall Amendment oi section 64. be inserted after subsection (b): "(c) A Medical Board of Objections may avail itself of the as• sistance of an adviser who is not a physician. The Minister shall, by regulations, prescribe the procedure for appointing an adviser as aforesaid.".

19. The following section shall be inserted after section 64 of the Addition of section 64A. principal Law:

"Appeal 64A. A decision of the Medical Board of Objections is against de• appealable, on a point of law only, to an Appeals Tribunal cision of Medical under section 224.". Board of Objections. 20. In section 65 of the principal Law, the expression "section 61 Amendment of section 65. or 64" shall be replaced by the expression "sections 61 to 64".

21. In section 68 of the principal Law, the words "but not less than Amendment of section 68. five per cent" shall be inserted after the words "or is less than 25 per cent".

22. In section 69 of the principal Law, subsection (b) shall be re• Amendment of section 69. marked as subsection (c) and the following subsection shall be inserted after subsection (a): "(b) An invalid for whom a degree of invalidity of at least 75 per cent has been determined, being a non-stable degree of in• validity, shall be entitled to a special pension under subsection (a)(1) if a physician or Medical Board under section 61, or the Medical Board of Objections under section 64, has determined that he or it is of the opinion that the invalid's stable degree of invalidity is not less than 75 per cent. A determination under this subsection shall, for the purposes of section 65, have the effect of the determination of a degree of invalidity.".

23. In section 70 of the principal Law, the words "the last pension" Amendment of in subsection (a) shall be replaced by the words "the pension of that section 70. invalid".

24. The following section shall be inserted after section 73 of the Addition of principal Law: section 73A.

225 "Increase of 73A. (a) The invalidity pension payable to an invalid

invalidity wjtn a degree 0f invalidity of 50 per cent or over in re- pension* • • . spect of an employment injury which occurred in one of the years specified in Table VI (hereinafter referred to as "the year of the injury") shall, from the date of publication in Reshumot of the National Insurance (Amendment No. 2) Law, 5729-1969, be increased at the rate specified in that table opposite the year of the injury: Provided that it shall not exceed the daily maximum specified in Table V, multiplied by thirty. (b) The provisions of subsection (a) shall not apply to an insured person whose pension increases under section 72.".

Amendment of 25. In section 74(a) of the principal Law — section 74. (1) the words "so long as he or she is so incapable" shall be added at the end of paragraph (4); (2) the words "so long as he is so incapable" shall be inserted after the words "is incapable of supporting himself" in para• graph (5).

Addition of 26. The following section shall be inserted after section 82 of the section 82A. principal Law:

"Increase of 82A. A dependant's pension payable in respect of an dependant's employment injury which occurred in one of the years pension. specified in Table V 1 shall, from the date of publication of the National Insurance (Amendment No. 2) Law, 5729-1969, be increased at the rate specified in that table opposite the year of the injury : Provided that it shall not exceed the daily maximum specified in Table V, multi• plied by thirty.".

Amendment of 27. In section 89 of the principal Law, subsections (b) and (c) shall be section 89. repealed.

Addition of 28. Secdon 90 of the principal Law is hereby repealed, and the Chapter following shall be inserted after section 89 : Three "A". "CHAPTER THREE "A" — VOCATIONAL TRAINING AND LIVELIHOOD ALLOWANCE FOR WIDOWS AND ORPHANS

"Defini• 90. In this chapter — tions. "widow" has the same meaning as in section 5 or section 74(b)(2); "orphan" means a child within the meaning of section 5 who is a dependant under section 17(2) or section 74(a)(2).

226 "Vocational 90A. The Minister may, by regulations, in consultation training and with the Minister of Finance and with the approval of livelihood allowance the Labour Affairs Committee of the Knesset, enact for widow provisions and conditions concerning — and orphan. (1) the provision of vocational training, including a livelihood allowance and evaluation expenses, to a widow; (2) the payment of a livelihood allowance for an orphan whose time is mainly devoted to post- elementary studies or vocational training.".

29. Section 92 of the principal Law shall be replaced by the following Amendment of 92־ section : section

"Insured 92. There shall be regarded as insured for the purposes persons. of this chapter — (1) a woman, being an employee or self-employed person in Israel or the wife of an employee or self- employed person in Israel, if delivery takes place in Israel; (2) a woman insured under Chapter Two and the wife of a person insured under Chapter Two, even if delivery takes place outside Israel.".

30. In section 96 of the principal Law, the definition of "contribu- Amendment of tions" shall be deleted. section 96.

31. In section 97 of the principal Law — Amendment of section 97. (1) in the first subsection, the mark "(a)" shall be deleted and the words "An insured person who is an employee or a self-em­ ployed person (such an insured person hereafter in this article referred to as "an insured person") shall be paid by the Institute" shall be replaced by the words "The Institute shall pay to an insured person";

(2) subsection (b) shall be deleted.

32. Section 98 of the principal Law shall be replaced by the following Amendment of section 98. section

"Extent of 98. (a) A woman for whom contributions have been right. paid, as for an employee or self-employed person, under Item 1, 2, 7, or 8 of Table X (such contributions hereafter in this article referred to as "contributions"), except con­ tributions the due date of payment of which fell within sixty days before the determining day, shall be entitled to maternity allowance —

227 (1) for a period not exceeding twelve weeks — (a) if she was insured for ten months out of the fourteen months preceding the determin• ing day; (b) if she was insured for fifteen months out of the twenty-two months preceding the determining day; (2) for a period not exceeding six weeks — (a) if she was insured for ten months out of the eighteen months preceding the determin• ing day; (b) if she was insured for six months, having been in Israel for not more than fourteen months preceding the determining day.

(b) Where the conditions set out in paragraph (1) or (2) of subsection (a) are fulfiilled, the woman shall, notwithstanding the opening passage of subsection (a), be entitled to maternity allowance for a period not exceeding six weeks if contributions have been paid, except con• tributions the due date of payment of which fell between sixty days and one hundred and twenty days before the determining day.".

Amendment of 33. Section 100 of the principal Law shall be re-marked as section section 100. 100(a) and the following subsection shall be added thereafter : "(b) If variations in the maximum occur under section 167A, the amount specified in Table VII shall be varied at a rate and from a date prescribed by the Minister by notice in Reshumot.".

Amendment of 34. In section 104 of the principal Law — section 104. (1) the definition of "insured person" in subsection (a) shall be replaced by the following definition : " "insured person" means a person insured under Chapter Two and includes a widow entitled to a pension who would be insured but for the provisions of section 9;"; (2) subsection (b) shall be replaced by the following subsection : "(b) A child shall not be regarded as being abroad if he has been away from Israel for a period not exceeding six months; but the Institute may regard him as being in Israel even if he has been away from Israel for a period exceeding six months.".

Amendment of 35. In section 106 of the principal Law, the words "who is actually section 106. his principal supporter" in subsection (b) shall be replaced by the words "with whom he is".

228 Amendment of 36. In section 107 of the principal Law, the following shall be added

except jn the case of a widow or a divorced woman or a״ .section 107. at tne encj person who has become a resident of Israel by virtue of his entry into Israel".

Repeal of 37. Section 108 of the principal Law is hereby repealed. section 108.

Replacement of 38. Section 110 of the principal Law shall be replaced by the follow­ section 110. ing section :

"Recipient 110. (a) A family allowance shall be paid to the of allow- mother : Provided that if the child is with the father only, and the father is entitled to an allowance, the allow­ ance shall be paid to the father. (b) Notwithstanding anything contained in sub­ section (a), the following provisions shall apply to a family allowance which was first payable before the 15th Nisan, 5725 (17th April, 1965) : (1) The allowance shall be paid to the father entitled to a pension if the child is with him; (2) if the conditions set out in paragraph (1) in respect of the father are not fulfilled, the allowance shall be paid to the mother.".

Amendment of 39. In section 117 of the principal Law, subsection (c) shall be section 117. repealed.

Addition of 40. The following section shall be inserted after section 117 of the section 118A. principal Law:

"Natural and 118A. Where a child has a natural parent and another other parent. parent who are both insured, he shall, for the purposes of this chapter, be regarded as the child of the parent with whom he is.".

Amendment of 41. Section 135 of the principal Law shall be re-marked as section section 135. 135(a), and the following subsection shall be added thereafter : "(b) Where owing to his mental or physical condition a person entitled to an allowance is unable to collect it, it shall, for a period not exceeding one year, be paid to one of his relatives. For the purposes of this section, "relative" means a spouse, child or parent or, in the absence of all these, a grandchild.".

Amendment of 42. In section 136 of the principal Law, after the words "the section 136. Institute" in subsection (b), there shall be inserted the words "or any other body designated by the Minister by order".

Amendment of 43. In section 139 of the principal Law, after the words "of an section 139. amount exceeding half the amount of the allowance" in subsection (c)2, there shall be inserted the words "so long as the delay in paying con-

229 tributions does not entail a reduction or denial of the payment of a benefit under section 181".

Amendment of 44. In section 140 of the principal Law — section 140. (1) the opening passage shall be replaced by the following opening passage: "Where the Institute has erroneously or improperly paid a monetary benefit, an amount under section 123, an amount on behalf of the Government or a public body under section 200 or an amount on behalf of the Equalisation Fund under sections 13 and 25 of the Reserve Service (Compensation) Law, 5719-1959 (Consolidated Version)1), the following provisions shall apply:"; (2) the following paragraph shall be inserted after paragraph (2): "(3) an amount deducted or received under this section otherwise than in favour of the Institute shall be returned by the Institute to the Treasury, the public body or the Equalisation Fund, as the case may be.".

Amendment of 45. In section 143 of the principal Law, the following shall be added section 143. at the end of subsection (c): "If he opts for an invalidity pension or dependant's pension instead of an old age pension or survivor's pension, as the case may be, the invalidity pension or dependant's pension shall not be less than the amount of the old-age pension or survivor's pension so long as he is entitled thereto as aforesaid.".

Amendment of 46. Section 145 of the principal Law shall be re-marked as section section 145. 145(a) and the following subsection shall be added thereafter : "(b) A person entitled in respect of one period to injury benefits or to compensation for reserve service under the Reserve Service (Compensation) Law, 5719-1959 (Consolidated Version) may opt for one of them.".

Amendment of 47. In section 146 of the principal Law, the words "unless he is section 146. abroad with the approval of the Institute or in accordance with regula• tions" shall be replaced by the words "save with the consent of the Institute".

Amendment of 48. In section 157 of the principal Law, subsections (c) and (d) shall section 157. be re-marked as subsections (d) and (e) and the following subsection shall be inserted before them : "(c) Maternity insurance contributions shall be paid for every employee or self-employed person who is not an Israel resident.".

Amendment of 49. In section 161(c) of the principal Law, the expressions "or (c)" section 161. and "or 7" shall be respectively inserted after the expressions "under section 157(a)" and "item 1".

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

230 50. In section 167 of the principal Law, the words "the maximum Amendment of section 167. and minimum amounts" in subsection (c) shall be replaced by the ex• pression "the minimum amounts".

51. The following section shall be inserted after section 167 : Addition of section 167A. "Variation of 167A. (a) The maximum amounts specified in Table XI maximum. shall from the 1st April of each year be increased or reduced, with the approval of the Labour Affairs Com• mittee of the Knesset, in accordance with the fluctuations between the average monthly wage for the twelve-month period ending the 30th September of each year (herein• after referred to as "the average wage") and the average wage as calculated to the 30th September, 1967, or the average wage according to which the maximum amounts were last increased, whichever average wage is the later : Provided that a fluctuation by less than 50 pounds shall not be taken into account. For the present purpose, the average wage shall be as calculated by the Central Bureau of Statistics, according to the wage and employment indices for all wage-earners in the economy, on the basis of employers' reports. (b) The Minister shall bring fluctuations as re• ferred to in subsection (a) to the knowledge of the Labour Affairs Committee of the Knesset. (c) If a change occurs in the method of calcula• tion as aforesaid, the Minister shall, by regulations with the approval of the Labour Affairs Committee of the Knesset, prescribe another method of calculating the average wage. (d) A notice of every increase or deduction under subsection (a) shall be published by the Minister in Reshumot, and Table XI shall be varied accordingly.".

52. (a) In section 168 of the principal Law, the following paragraph Amendment of shall be inserted after subsection (a)(3): section 168. "(4) a payment out of the Treasury to a person serving in the Reserves in a service declared by the Minister of Defence to be an emergency service under section 3(b) of the Reserve Service (Compensation) Law, 5719-1959 (Consolidated Ver• sion) (such a payment hereinafter referred to as a "special payment").". (b) Subsection (a) shall come into force on the 5th Iyar, 5727 (18th May, 1967).

53. In section 169 of the principal Law — Amendment of section 169. (1) the expression "or (c)" shall be inserted after the expression "157(a)" in subsection (c); (2) (a textual amendment not affecting the English version)

231 (3) the following subsections shall be inserted after subsection (d): "(e) No contributions shall be paid in respect of a time during which the insured person, being neither an employee nor a self-employed person — (1) is the child of another insured person and incapable of supporting himself; or (2) is a dependant under secdon 17(3) in respect of whom a survivor's pension or an addition to an old-age pension is payable; or (3) is a dependant under section 74 incapable of supporting himself in respect of whom a dependant's pension is payable. (f) No contributions shall be paid in respect of an employee to whom a special payment is due for a whole month and who is paid no wage whatever in respect of that month.".

Addition of 54. The following section shall be inserted after section 178 of the section 178A. principal Law:

"Writing-off 178A. Where an insured person has died without an contribution entitlement to a survivor's or dependant's benefit existing debt. by his right, the Institute shall not be entitled to collect any insurance debt which he owed in respect of himself.".

Amendment of 55. In section 181 of the principal Law — section 181. (1) the following shall be inserted at the end of subsection (b): "nor to benefits under Chapter Three if at the time of the event entitling to a benefit the insured person is not under a duty to pay employment injury contributions."; (2) the following subsection shall be inserted after subsection (b): "(c) Where a person has been insured for a period exceeding ten years, the periods referred to in subsection (a) shall be extended by two months in respect of each year in excess of ten years.".

Amendment of 56. In section 185 of the principal Law, the following subsections section 185. shall be inserted after subsection (b): "(c) Where an employer is sued under this section, he shall be entitled to join as an additional defendant any person who, at or before the date of the claim, was an employer of the employee in respect of whom the claim has been filed if that person is in arrears with the payment of contributions for that employee, and to demand the apportionment of the amount of the claim between himself and that person in the ratio of a their respective arrears, (d) The provisions of subsection (c) shall not apply where an employer is sued in respect of an employment injury which occurred to an employee or if the delay in paying contributions occurred during a period which preceded by more than five years the date of the event which entitles to a benefit.".

232 37. In section 186 of the principal Law, the following subparagraphs Amendment of shall be inserted after paragraph 5(A) : section 1S6• "(t) an insured person classified under section 4A; (j) an insured person who according to the Income Tax Ordinance1) or the regulations thereunder has to have income tax deducted at source from his income, except income from the sources specified in section 2(2) of the Ordinance".

58. Section 189 of the principal Ordinance is hereby repealed. Repeal of section 189. 59. Section 190 of the principal Law shall be re-marked as section Amendment of 190(a) and the following subsection shall be inserted thereafter : section 190. "(b) A multilateral convention relating to national insurance to which the State of Israel has acceded shall be regarded as an agreement between the State and each of the states parties to that convention, provided that the state in question does not discrim­ inate against Israel nationals in branches of insurance dealt with by this Law.".

60. In section 200 of the principal Law — Amendment of section 200. (1) the words "and the Government, may on behalf of the Government" shall be replaced by the words "and the Govern­ ment or a public body designated by the Minister with the sanc­ tion of the Government, may on behalf of the Government or that public body"; (2) subsection (b) shall be replaced by the following subsection : "(b) The Treasury or the public body shall reimburse the Institute for every amount expended in providing the said benefits, as may be laid down in the agreement under sub­ section (a).".

61. In section 206 of the principal Law, the words "the Assistant Amendment of Director-General (if such has been appointed)" in subsection (1) shall be section 206. replaced by the words "the Deputy Director or Assistant Director (if a Deputy Director or Assistant Director has been appointed)".

the words "appoint an Amendment of ־In section 208 of the principal Law .62 Assistant Director of the Institute" shall be replaced by the words section 208. "appoint a Deputy Director or Assistant Director of the Institute".

63. The following sections shall be inserted after section 231 of the principal Law:

"Action by 231 A. Where the claim of an employee or his depend-

employerin for a benefit under Chapter Three has been rejected of action kv tne Institute, and he or they has or have not filed an by employee. action in the Tribunal within the time prescribed by regulations, the employer may file an action in the Tribunal

1) Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120; NV vol. I, p. 145.

233 against the Institute on his or their behalf within a period prescribed by the Minister of Justice by regulations in consultation with the Minister.

Bar to 23IB. A plea contrary to a final judgment of the pleading. Tribunal as to whether or not a benefit under Chapter Three is due shall not be heard in any court or tribunal.".

Addition of 64. (a) The following section shall be inserted after section 232 of xection 233. the principal Law:

"Prescribing 233. The Minister of Justice may, in consultation with of times. the Minister, make regulations as to the times for filing actions in the Labour Court for the purposes of this Law.". (b) Subsection (a) shall come into force in the 18th Elul, 5729 (1st September, 1969).

Amendment of 65. (a) In Table III to the principal Law, Item 4 shall be replaced Table III. by the following items :

Item Number of Departments Pounds

«4 48.65 4 or more 56.52".

(b) Subsection (a) shall come into force on the 17th Av, 5727 (1st August, 1969).

Addition of 66. The following table shall be inserted after Table V to the Table V 1. principal Law: "TABLE V 1 (Sections 73A and 82A)

Year of Injury Rate of Year of Injury Rate of (Financial Year) Increase (Financial Year) Increase

1954/55 48% 1960/61 24% 1955/56 44% 1961/62 20% 1956/57 40% 1962/63 16% 1957/58 36% 1963/64 12% 1958/59 32% 1964/65 8% 1959/60 28% 1965/66 4%".

Amendment of 67. In Table VI to the principal Law, Item 2 shall be replaced by the Table VI. following items:

Item Number of Children Born Pounds

"2 Two children born alive at one birth 740 3 Three childen born alive at one birth 1,060".

234 68. In Table X to the principal Law, the following shall be added at Amendment of Table X. the end:

T Category of Insured , ״

Branches Item persons Per Cent of Income

"D. Maternity Person Insured under Chapter Four and Not under Chapter Two 7 Employee 0.6; deduction from wage : 0.3 8 Self-employed person 0.6".

69. In Table XIII to the principal Law, the following shall be added Amendment of at the end: TableXIII.

Contributions, Percentage to Be Credited to Branch of Insurance according to items Old-Age and Maternity, Large Employees' Employment of Table X Survivors Families Children Injuries

"7 100 8 100

GOLDA MEIR YOSEF ALMOOI Prime Minister Minister of Labour SHNEUR ZALMAN SHAZAR President of the State

(No. 69)

SETTLEMENT OF LABOUR DISPUTES (AMENDMENT) LAW, 5729-1969*

1. In the Settlement of Labour Disputes Law, 5717-19571) (herein­ Addition of after referred to as "the principal Law"), the following sections shall be sections 5A- 5C. inserted after section 5 :

"Duty to give 5A. Notwithstanding the provisions of section 5, a party notice of to a dispute is bound to give the other party and the Chief strike or lockout. Officer notice as specified in that section of every strike or lockout, as the case may be, at least fifteen days before the beginning thereof.

Overriding 5B. Where a different arrangement from that prescribed effect of by section 5A has been laid down by collective agreement, collective agreement. the provisions of the collective agreement shall apply.

Passed by the Knesset on the 2nd Av, 5729 (17th July, 1959) and published in Sefer Ha-Chukkim No. 569 of the 10th Av, 5729 (25th July, 1969), p. 216; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 775 of 5728, p. 775. Sefer Ha-Chukkim of 5717, p. 58; LSI vol. XI, p. 51.

235 Restriction on 5C. The Minister of Labour may designate by regula-

apphcabihty. tjons> witn the approvai 0f the Labour Affairs Committee of the Knesset, classes of disputes or branches of employ• ment to which the provisions of secdon 5A shall not apply.".

Amendment of 2. In section 6 of the principal Law, the expression "under section 5"

section 6. snau be rep!acerj by the expression "under section 5 or 5A".

GOLDA MEIR YOSEF ALMOOI Prime Minister Minister of Labour SHNEUR ZALMAN SHAZAR President of the State

(No. 70)

ENGINEERING CONSTRUCTION CONTRACTORS (REGISTRATION) LAW, 5729-1969*

Definitions. 1. In this Law — "works of engineering construction" means building, including internal building, the laying of roads, the construction of bridges, sewerage, drainage, the construction of harbours and the construc• tion of waterworks; the Ministers may, by regulations, with the approval of the Economic Committee of the Knesset, designate further types of works of engineering construction for the purposes of this Law; "engineering construction contractor" means a person who un• dertakes works of engineering construction for another and in• cludes a person who carries out such works, on land in his owner• ship or possession, with a view to sale or letting; "the Ministers" means the Minister of Housing and the Minister of Labour.

Registrar. 2. The Ministers shall appoint a Registrar, who shall keep a Register of Engineering Construction Contractors (hereinafter referred to as "the Register").

Register of 3. (a) The Register shall contain separate sections for each branch Engineering of works of engineering construction, viz. building, roads, bridges, Construction sewerage, drainage, harbours and water, and every contractor shall Contractors. be registered in the section relating to the branch of work in which he is permitted to engage.

* Passed by the Knesset on the 1st Av, 5729 (16th July, 1969) and published in Sefer Ha-Chukkim No. 570 of the 10th Av, 5729 (25th July, 1969), p. 218; the Bill and an Explanatory Note were published in Hatzetot Chok No. 838 of 5729, p. 255.

236 (b) The Ministers may, by regulations, direct the merger of existing sections or the division of one section into two or more sections.

4. The following are entitled to be registered in the Register after Registration in paying the registration fee prescribed by regulations: Register. (1) a person registered in the Register of Engineers and 5718־ ,Architects kept under the Engineers and Architects Law 19581), who has had experience in carrying out works of engineer­ ing construction for two out of the five years preceding the filing of his application for registration in the Register; (2) a graduate of a senior technicians', or technicians', school out of a list of schools designated by regulations who has had experience in carrying out works of engineering construction for four out of the eight years preceding the filing of his application for registration in the Register; (3) a person who for at least six out of the twelve years preceding his application for registration in the Register has been a foreman in works of engineering construction of a type designated by the Ministers, by regulations, as first-grade and who has proved such by evidence or tests prescribed by the Ministers as aforesaid; (4) a person who has worked as an engineering construction con­ tractor for at least three out of the five years preceding the coming into force of this Law and within one year from the day of the coming into force of this Law has filed an application for registra­ tion in the Register: Provided that a person who for three years as aforesaid has been a member of an organisation affiliated with the National Centre of Contractors' and Builders' Organisations in Israel shall be deemed to have worked as an engineering construction contractor during that period;

(5) a body corporate in which at least two members or one member — as may be prescribed by regulations for different types of bodies corporate — of the body actually managing its business, or a partnership in which at least one of two partners or at least two of a greater number of partners, meet or meets the requirements mentioned in one of paragraphs (1) to (4);

(6) a body corporate or partnership or individual employing workers who meet the requirements of one of paragraphs (1) to (4), of a number, not less than two, prescribed by regulations in accordance with the classification of the body corporate, partner­ ship or individual; but it or he shall be entitled to remain registered in the Register so long only as it or he employs workers as aforesaid.

5. A person may be registered in more than one section of the Double Register of Engineering Construction Contractors if all the conditions registration, for his registration in die sections in question, as prescribed by regula-

1 ) Seftr Ha-Chukkim of 5718, p. 108; LSI vol. XII, p. 124.

237 tions with the approval of the Economic Committee of the Knesset, are fulfilled.

Exclusive 6. A person shall not use the designation "engineering construction right to contractor" or a designation so similar to it as to mislead, or hold himself designation. out to be an engineering construction contractor, unless he is registered in the Register (a person so registered hereinafter referred to as a "registered contractor").

Powers of 7. (a) The functions and powers of the Registrar shall be as follows: Registrar. (1) to receive applications for the registration of engineering construction contractors; (2) to register contractors in their respective sections of the Register or to refuse an application for registration, and to cancel or vary a registration; (3) to classify contractors according to classes determined by regulations, all in accordance with rules prescribed by regulations. (b) The Registrar may only exercise his powers under subsec• tion (a) after consultation with an advisory committee appointed by the Ministers from among representatives of scientific institutions concerned with branches of the building industry. The Ministers shall appoint the conimittee after consultation with the Engineering Construction Council referred to in section 12, but registered contractors shall not be appointed to the committee.

Disqualification 8. The following shall not be entitled to registration in the Register, for and and if they have been registered, their registration shall be cancelled: cancellation of registration. (1) an undischarged bankrupt; (2) a person convicted of an offence which, according to criteria prescribed by regulations, impairs his reliability with regard to being a registered contractor, so long as three years have not elapsed since he underwent his punishment for that offence; (3) a person who has constantly disregarded the accepted prac• tice of his trade, as defined by regulations.

Objection. 9. A person who considers himself aggrieved by a decision of the Registrar under section 7 may lodge objection with an objection com• mittee established under section 10.

Objection 10. There shall be established an objection committee with the follow• committee. ing composition: (1) a Judge of a District Court, appointed by the Minister of Justice, who shall act as chairman of the committee; (2) a member of the public appointed by the Minister of Hous• ing otherwise than from among State employees; (3) a member of the public appointed by the Minister of Labour otherwise than from among State employees;

238 (4) two advisers appointed by the Ministers, one upon the recommendation of the representative organisation of registered contractors and one upon the recommendation of the largest organisation of building workers in the State; the advisers shall take part in the deliberations of the committee and shall give their opinions, but they shall not take part in the decision.

11. (a) An objection committee shall have all the powers conferred Auxiliary powers and rules of by sections 9 to 11 of the Commissions of Inquiry Ordinance, 5729- procedure. 19691). (b) An objection committee shall itself prescribe its rules of procedure in so far as they are not prescribed by this Law or by regulations made thereunder.

12. (a) The Ministers shall appoint an Engineering Construction Engineering Construction Council, consisting of fifteen members (hereinafter referred to as "the Council. Council"). (b) The composition of the Council shall be as follows: (1) a person appointed by the Ministers to be the chairman of the Council; (2) five representatives of the representative organisation of contractors and builders in Israel; (3) two representatives of other bodies of importance to the Israeli building industry; (4) four members of the public designated by the Ministers after consultation with public organisations which in the opinion of the Ministers are concerned. (5) three representatives of the Government, designated by it upon the recommendation of the Ministers. (c) The period of tenure of the Council shall be three years, and every member may be re-appointed for an additional period. If the place of a member falls vacant for any reason, a successor shall be appointed, in the same manner as die member was whose place has fallen vacant, for the remainder of the period of tenure of the Council to which he is appointed.

13. The Council shall advise the Ministers as to any matter relating Function of to the implementation of this Law in so far as this Law does not other• Council. wise provide in respect of that matter.

14. Works of engineering construction which financially or as to their Works exceeding professional scope exceed limits prescribed by regulations with the prescribed limits. approval of the Economic Committee of the Knesset may only be carried out by a contractor registered for the branches of work in question.

15. Every appointment under this Law shall be published in Reshumol. Publication of appointments.

1) Sefer Ha-Chukkim of 5729 p. 28; supra, p. 32.

239 Penalties. 16. A person who does one of the following : (1) carries out works of engineering construction in contraven• tion of the provisions of this Law; (2) uses the designation "enginering^ construction contractor" without being entitled to do so under the provisions of this Law, shall be liable to imprisonment for a term of six months or to a fine of 5,000 •pounds.

Implementation 17. The Ministers are charged with the implementation of this Law and regulations. and may, after consultation with the Council, make regulations for such implementation, including regulations as to — (1) different classes of registered contractors, according to pro• fessional knowledge, experience, financial ability and the equip• ment at their disposal or other criteria prescribed by regulations as aforesaid; (2) modes of keeping track of any such changes with regard to the said criteria as will involve changes in the classification of registered contractors; (3) the fees to be paid for registration in the Register.

Transitional 18. Individuals and bodies who or which immediately before the pub• provisions. lication of this Law in Reshumot were engaged as contractors in works of engineering construction may continue to be so engaged after the coming into force of this Law until the Ministers, by order, prescribe conditions and a final date for their registration in the Register: Provided that a person who began to carry out some particular work before the date prescribed as aforesaid shall be permitted to complete it.

Commencement. 19. This Law shall come into force upon the expiration of six months from the date of its publication in Reshumot.

GOLDA MEIR MORDEKHAI BENTOV YOSEF ALMOOI Prime Minister Minister of Housing Minister of Labour

SHNEUR ZALMAN SHAZAR President of the State

240 (No. 71)

DEVELOPMENT LOAN (AMENDMENT No. 8) LAW, 5729-1969*

1. In section 1 of the Development Loan Law, 5720-19601) (herein• Amendment of after referred to as "the principal Law"), the expression "850 million section 1. pounds" shall be replaced by the expression "1,250 million pounds".

2. The following section shall be inserted after section 6 of the Addition of principal Law: section 6A.

,,Power to 6A. When the whole or part of a series of bonds has issue new been redeemed, the Government may issue a new series, of series of bonds. an amount equal to the amount redeemed, either on the same conditions as the redeemed series or on other con• ditions prescribed under sections 5 and 6.".

GOLDA MEIR ZEEV SHAREF Prime Minister Minister of Finance SHNEUR ZALMAN SHAZAR President of the State

(No. 72)

LOAN (INSURANCE COMPANIES) (AMENDMENT No. 2) LAW, 5729-1969**

1. In section 1 of the Loan (Insurance Companies) Law, 5723-19622) Amendment of (hereinafter referred to as "the principal Law"), the following definitions sectl0n 1• shall be inserted after the definition of "cost-of-living index" or "index" : "basic index", in relation to a bond, means the index last publish• ed before the stated date of the bond; "new index" —

* Passed by the Knesset on the 1st Av, 5729 (16th July, 1969) and published in Sefer Ha-Cukkim No. 570 of the 10th Av, 5729 (25th July 1969), p. 221; the Bill and an Explanatory Note were published in Hatzaot Chok No. 839 of 5729, p. 265. 1) Sefer Ha-Chukkim of 5720, p. 47 — LSI vol. XIV, p. 39; Sefer Ha-Chukkim of 5721, p. 128 — LSI vol. XV, p. 133; Sefer Ha-Chukkim of 5722, p. 129 — LSI vol. XVI, p. 121; Sefer Ha-Chukkim of 5724, pp. 6 and 116 — LSI vol. XVIII, pp. 6 and 110; Sefer Ha-Chukkim of 5726, p. 15 — LSI vol. XX, p. 12; Sefer Ha-Chukkim of 5727, p. 106 — LSI vol. XXI, p. 104; Sefer Ha-Chukkim of 5728, p. 34; LSI vol. XXII, p. 32. ** Passed by the Knesset on the 1st Av, 5729 (16th July, 1969) and published in Sefer Ha-Chukkim No. 570 of the 10th Av, 5729 (25th July, 1969) p. 222; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 839 of 5729, p. 263. 2) Sefer Ha-Chukkim of 5723, p. 10 — LSI vol. XVII, p. 14; Sefer Ha-Chukkim of 5724, p. 6 — LSI vol. XVIII, p. 6.

241 (1) for the purposes of the redemption of a bond the day of acquisition of which is prior to the 30th Kislev, 5728 (1st January, 1968) and for the purposes of the payment of interest thereon, means the index last published before the due date of payment of the amount of principal or interest in question; i

(2) for the purposes of the acquisition of a bond the day of acquisition of which is the 30th Kislev, 5728 (1st January, 1968) or a later day and for the purposes of the redemption thereof and the payment of interest thereon means, in the period between the 1st January and 30th June of any year, the index published in December of the preceding year, and in the period between the 1st July and 31st December of any year, the index published in June of that year.".

Amendment of 2. In section 2 of the principal Law, the expression "100 million section 2. pounds" shall be replaced by the expression "200 million pounds".

Amendment of 3. In section 3 of the principal Law, the words "in ten annual series" section 3. shall be replaced by the words "in sixteen annual series.".

Amendment of 4. The following shall be added at the end of section 5 (a) of the section 5. principal Law : "Provided that bonds the day of acquisition of which is the 30th Kislev, 5728 (1st January, 1968) or a later day shall bear interest at the rate of 5.8 per cent from the day of their acquisition".

Replacement 5. Section 8 of the principal Law shall be replaced by the following of section 8. section:

"Conditions 8. The following provision shall apply to the redemp• of linking tion of the principal and payment of the interest of bonds to index. linked to the cost-of-living index: if on the due date of payment of any amount of principal or interest the new index is higher than the basic index, the holder of the bond shall be paid that amount increased in the propor• tion in which the index has risen.".

Amendment of 6. The following shall be added at the end of section 12 of the section 12. principal Law: "However, bonds linked to the cost-of-living index and the day of acquisition of which is the 30th Kislev, 5728 (1st January, 1968) or a later day shall be sold at their stated price, subject to any excess of the new index, as on the day of acquisition, over the basic index and with a reduction of one per cent.".

GOLDA MEIR ZEEV SHAREF Prime Minister Minister of Finance SHNEUR ZALMAN SHAZAR President of the State

242 (No. 73)

INCOME TAX ORDINANCE (AMENDMENT No. 2 OF 5722-1962) (AMENDMENT No. 3) LAW, 5729-1969*

1. In section 1 of the Income Tax Ordinance (Amendment No. 2) Amendment of Law, 5722-19621)— section 1. (1) the marginal note shall be amended to read "Special provi­ sions for the tax years 1962-1974"; (2) the expression "in the tax years 1962-1969" in subsection (a) shall be replaced by the expression "in the tax years 1962-1974"; (3) the expression "and the 31st of March, 1970" in subsec­ tion (b) shall be replaced by the expression "and the 31st of March, 1975"; (4) the expression "in the tax years 1967-1969" in subsection (c) shall be replaced by the expression "in the tax years 1967-1972".

GOLDA MEIR ZEEV SHAREF Prime Minister Minister of Finance SHNEUR ZALMAN SHAZAR President of the State

(No. 74)

PLANNING AND BUILDING (AMENDMENT No. 3) LAW, 5729-1969**

Amendment of (5725-1965־ ,In section 18 of the Planning and Building Law .1 (hereinafter referred to as "the principal Law"), the following sub- sectl0n section shall be inserted after subsection (e): "(el) A representative of the Fire-Fighting Authority the area of which includes the area of the Local Commission, being a person with a professional training in fire prevention, shall be regularly invited to the deliberations of the Subcommission and shall be heard thereat in an advisory capacity in matters relating to fires.".

* Passed by the Knesset on the 1st Av, 5729 (16th July, 1969) and published in Sefer Ha-Chuhkim No. 570 of the 10th Av, 5729 (25th July, 1969) p. 223; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 842 of 5729, p. 298. 1) Sefer Ha-Chukkim of 5722, p. 129 — LSI vol. XVI, p. 120; Sefer Ha- Chukkim of 5725, p. 37 — LSI vol. XIX, p. 37; Sefer Ha-Chukkim of 5727, p. 103 — LSI vol. XXI, p. 100. ** Passed by the Knesset on the 1st Av, 5729 (16th July, 1969) and published in Sefer Ha-Chukkim, No. 570 of the 10th Av, 5729 (25th July, 1969), p. 223; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 844 of 5729, p. 309. 2) Sefer Ha-Chukkim of 5725, p. 307 — LSI vol. XIX, p. 330; Sefer Ha- Chukkim of 5727. p. 10 — LSI vol. XXI, p. 8.

243 2. Section 19 of the principal Law shall be re-marked as section 19(a), and the following subsection shall be added thereafter: "(b) A representative of the Fire-Fighting Authority the area of which includes the area of the Local Commission, being a person with a professional training in the prevention of fires, shall be regularly invited to the deliberations of the Commission and shall be heard thereat in an advisory capacity in matters relating to fires. If the area of the Commission belongs to more than one Fire-Fighting Authority, the Minister of the Interior shall designate the Fire-Fighting Authority which shall appoint a representative for the purposes of this subsection.".

the following subsection shall ־In section 29 of the principal Law .3 be inserted after subsection (b): "(bl) A representative of the Fire-Fighting Authority the area of which includes the area of the Local Commission, being a per­ son with a professional training in fire prevention, shall be regu­ larly invited to the deliberations of the Subcommission and shall be heard thereat in an advisory capacity in matters relating to fires. If the Local Commission has no Subcommission, this provi­ sion shall apply to the deliberations of the Local Commission.".

GOLDA MEIR HAIM MOSHE SHAPIRO Prime Minister Minister of the Interior SHNEUR ZALMAN SHAZAR President of the State

(No. 75)

TRAFFIC ORDINANCE (AMENDMENT No. 9) LAW, 5729-1969*

1. In section 27A of the Traffic Ordinance1) (hereinafter referred to as "the Ordinance") — (1) the marginal note shall be amended to read "Photograph of vehicle admissible as evidence."; (2) after the words "operated above or near a traffic light" in the opening passage, there shall be inserted the words "or by a camera operated by a police officer";

Passed by the Knesset on the 1st Av, 5729 (16th July, 1969) and published ״ in Sefer Ha-Chukkim No. 570 of the 10th Av, (25th July, 1969), p. 224; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 837 of 5729, p. 250. 1) Dinei Medinat Yisrael (Nusach Chadash) No. 7, p. 173 — NV vol. I, p. 222; Sefer Ha-Chukkim of 5722, p. 64; — LSI vol. XVI, p. 55; Sefer Ha-Chukkim of 5724, p. 78 — LSI vol. XVIII, p. 66; Sefer Ha-Chukkim of 5725, pp. 115, 183 and 202 — LSI vol. XIX, pp. 114, 188 and 210; Sefer Ha-Chukkim of 5726, p. 58 — LSI vol. XX, p. 50; Sefer Ha-Chukkim of 5727, p. 146 — LSI vol. XXI, p. 148.

244 (3) paragraph (3) of subsection (a) shall be replaced by the following paragraph : "(3) the presence or travelling of the vehicle at the place referred to in paragraph (2) in contravention of a stop sign or otherwise in contravention of the provisions of this Ordi• nance or of regulations made thereunder;"; (4) the words "(if at all)" shall be inserted after the words "as marked" in paragraph (4) of subsection (a).

2. In section 27B of the Ordinance, the words "and who that Amendment of person is" shall be inserted after the words "under the control of another section 27B. person at the time".

3. Section 3 of the Traffic Ordinance (Amendment No. 7) Law, Repeal of 5726-19661), is hereby repealed. section.

GOLDA MEIR MOSHE CARMEL Prime Minister Minister of Transport

SHNEUR ZALMAN SHAZAR President of the State

(No. 76)

TRAFFIC ORDINANCE (AMENDMENT No. 10) LAW, 5729-1969*

1. In section 70 of the Traffic Ordinance2), the following paragraph Amendment of shall be inserted after paragraph (17): section 70. "(17A) appliances and other devices to prevent the theft of different kinds of vehicles, including the duty to install such appliances or devices, the duty to use them and the conditions and times for their use;".

GOLDA MEIR MOSHE CARMEL Prime Minister Minister of Transport SHNEUR ZALMAN SHAZAR President of the State

1) Sefer Ha-Chukkim of 5726, p. 58; LSI vol XX, p. 50. * Passed by the Knesset on the 2nd Av 5729 (17th July, 1969) and published in Sefer Ha-Chukkim No. 570 of the 10th Av, 5729 (25th July, 1969), p. 224; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 851 of 5729, p. 342. 2) Dinei Medinat Yisrael (Nusach Chadash) No. 7, p. 173 — NV vol. I, p. 222; Sefer Ha-Chukkim of 5727, p. 146 — LSI vol. XXI, p. 148.

245 (No. 77)

POWERS OF SEARCH (EMERGENCY) (TEMPORARY PROVI• SION) LAW, 5729-1969*

Definitions. 1. In this Law — "the Ordinance" means the Criminal Procedure (Arrest and Searches) Ordinance (New Version), 5729-19691); "member of HAGA" means a member of HAGA, within the meaning of the Civil Defence Law, 5711-19512), on whom a power of arrest has been conferred under section 4 of the Ordinance: "soldier" means a soldier on whom a power of arrest has been conferred under section 4 of the Ordinance; "firearm" has the same meaning as in the Firearms Law, 5709- 19493); "explosive" has the same meaning as in the Explosives Law, 5714- 19544).

Search in 2. In a period in which a state of emergency exists in the State by a time of virtue of a declaration under section 9(a) of the Law and Administration emergency. Ordinance, 5708-19485), any police officer, soldier or member of HAGA may — (1) carry out a search of the effects of a person, or of a person or a vehicle, upon the entry of such person or vehicle into any building or enclosed premises if in his opinion such search is necessary in order to protect public security; (2) carry out a search of the effects of a person, or of a person or a vehicle, if he suspects that such person is unlawfully carrying any firearm or explosive or that any firearm or explosive is un• lawfully situated in such vehicle, as the case may be.

Seizure. 3. The powers of a police officer under the Ordinance as to the seizure of an article discovered in a search under this Law shall also vest in a soldier and a member of HAGA who are authorised to carry out a search as aforesaid, and the provisions of Chapter Four of the Ordinance shall apply mutatis mutandis to the seized ardcle.

* Passed by the Knesset on the 2nd Av, 5729 (17th July, 1969) and published in Sefer Ha-Chukkim No. 571 of the 10th Av, 5729 (25th July. 1969), p. 226; the Bill and an Explanatory Note were published inHatza'ot Chok No. 844 of 5729, p. 310. 1) Dinei Medinat Israel (Nusach Chadash) No. 12, p. 284. 2) Sefer Ha-Chukkim of 5711, p. 78; LSI vol. V, p. 72. 3) Sefer Ha-Chukkim of 5709, p. 143; LSI vol. Ill, p. 61. 4) Sefer Ha-Chukkim of 5714, p. 64; LSI vol. VIII, p. 124. 5) I.R. of 5708, Suppl. I, p. 2; 1*9/vol..I, p. 7.

246 4. Chapter Five of the Ordinance shall apply to a search or seizure Applicability of under this Law as if it were carried out under the Ordinance. Chapter Five of the Ordinance. GOLDA MEIR Prime Minister SHNEUR ZALMAN SHAZAR President of the State

(No. 78)

BASIC LAW: THE PRESIDENT OF THE STATE (AMENDMENT No. 2)* .

1. In the Basic Law: "The President of the State1), the sentence Amendment of "His period of tenure shall be reckoned according to the Jewish calendar" sectlon 3. shall be added at the end of section 3.

GOLDA MEIR Prime Minister

(No. 79)

FREE PORT ZONES LAW, 5729-1969**

CHAPTER ONE : INTERPRETATION

1. In this Law— Definitions, "port" and "port manager" have the same meaning as in the Ports Ordinance2); "Ports Authority" means the authority established under the ;(''5721-1961־ ,Ports Authority Law "Customs" has the same meaning as in the Customs Ordinance4);

* Passed by the Knesset on the 2nd Av, 5729 (17th July, 1969) and published in Sefer Ha-Chukkim No. 571 of the 10th Av, 5729 (25th July, 1969), p. 226; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 847 of 5729, p. 327. 1) Sefer Ha-Chukkim of 5724, p. 118— LSI XVIII, p. Ill; Sefer Ha- Chukkim of 5729, p. 98 — supra, p. 108. ** Passed by the Knesset on the 1st Av, 5729 (16th July, 1969) and published in Sefer Ha-Chukkim No. 572 of the 10th Av, 5729 (25th July, 1969) p. 228; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 830 of 5729, p. 211. 2) Laws of Palestine vol. II, cap. 114, p. 1168 (English Edition); Sefer Ha- Chukkim of 5726, p. 59 — LSI vol. XX, p. 52. 3) Sefer Ha-Chukkim of 5721, p. 145; LSI vol. XV, p. 152. 4) Dinei Medinat Yisrael (Nusach Chadash) No. 3 of 5717, p. 39 — NV vol. I, p. 51; Sefer Ha-Chukkim of 5725, p. 118 — LSI vol. XIX, p. 115.

247 "indirect taxes" means customs duty, excise duty, purchase tax and a charge under the Emergency Regulations (Compulsory Payments), 5718-19581);

CHAPTER TWO : FREE PORT ZONES

Establishment of 2. .The Government may establish a free port zone within the area free port zone. of a port.

Manager of free 3. The manager of the port in the area of which a free port zone is port zone. situated shall act as the manager of the free port zone.

Establishment 4. The Government shall appoint a Free Port Zones Council of Free Port (hereinafter referred to as "the Council"), which shall carry out the Zones Council. functions specified in this Law.

Composition of 5. (a) The members of the Council shall be — Council. (1) the Chairman of the Ports Authority; (2) the Director-General of the Ports Authority; (3) the Director of the Investment Centre appointed under ;(5719-1959־־ ,the Encouragement of Capital Investments Law (4) the State employees who are members of the Ports Authority; (5) a representative of the Ministry of Transport proposed by the Minister of Transport; (6) a representative of the Ministry of Commerce and Industry proposed by the Minister of Commerce and Industry; (7) a representative of the Ministry of Finance proposed by the Minister of Finance; (8) a representative of the local authority within the area of which a free port zone is situated, who shall be proposed by the Minister of the Interior upon the recommendation of the local authority; (9) three representatives of the public, proposed by the Minister of Finance and the Minister of Commerce and Industry. (b) Before proposing the representatives of the public on the Council, the Minister of Finance and the Minister of Commerce and Industry shall consult with public bodies concerned with economic affairs.

1) Sefer Ha-Chukkim of 5724, p. 175 — LSI vol. XVIII p. 173; Sefer Ha- Chukkim of 5726, p. 31 — LSI vol. XX, p. 27; Sefer Ha-Chukkim of 5727, p. 21— LSI vol. XXI, p. 13. 2) Sefer Ha-Chukkim of 5719, p. 234; LSI vol. XII, p. 258.

248 (c) The Government shall, upon the proposal of the Minister of Finance and the Minister of Transport, appoint one of the members of the Council to be the chairman thereof and another to be the vice- chairman. (d) Notice of the appointment of the Council and of any change in the composition thereof shall be published in Reshumot.

6. (a) The period of tenure of the members of the Council Period of tenure enumerated in paragraphs (5) to (9) of section 5(a) shall be four years of members of Council. from the date of their appointment: Provided that two of the initially appointed representatives of the public shall be appointed for three years only. (b) A member of the Council may be re-appointed. (c) A member of the Council whose period of tenure has expired shall continue to serve pending the appointment of a new member in his stead.

7. The provisions of sections 8 to 14 and 16 of the Ports Authority Application of Ports Authority Law, 5721-1961, shall apply mutatis mutandis to the Council and its Law to Council. members : Provided that every reference in the said provisions to the Minister of Transport shall be deemed to be a reference to the Minister upon whose proposal the Council member was appointed.

8. (a) A majority of the members of the Council, including the Procedure of Council. chairman or vice-chairman, shall be a quorum at the meetings of the Council. (b) The decisions of the Council shall be passed by a majority of votes, those abstaining not being taken into account.

9. (a) The Ports Authority is charged with the implementation of Implementation of decisions of the decisions of the Council. Council. (b) Everything required to be submitted to the Council shall be submitted to it through the Ports Authority.

10. (a) In a free port zone, the Ports Authority shall not exercise Restriction on its powers as to planning and building or as to the development of powers of Ports Authority. industries, save with the prior consent of the Council. (b) The Ports Authority shall not grant a lease of, or charge or mortgage, any immovable property in a free port zone, save with the prior consent of the Council. The sale or transfer of property as afore• said and a lease, charge or mortgage thereof or thereon for a period exceeding twenty years shall require consent as aforesaid and the approv• al of the Government or of a person empowered by it in that behalf. (c) A lease conferring a right to renew or extend it, as well as a lease for an additional period which together with the preceding period exceeds twenty years, shall require approval as specified in subsection (b).

249 CHAPTER THREE : AUTHORISED ENTERPRISES

Conditions of 11. (a) Only authorised enterprises shall be established and operate operation in in a free port zone ; and an authorised enterprise shall operate only free port zone. in a free port zone ; (b) For the present purpose, "authorised enterprise" means an undertaking approved by the Council for operation in a free port zone.

Application for 12. An applicant for the approval of an authorised enterprise shall approval. attach to his application a plan containing a detailed description of the operation which he intends to carry on in a free port zone.

Condition of 13. The Council shall not approve an undertaking as an authorised approval of enterprise unless it is owned by a company registered in Israel, including authorised a company registered as a foreign company, or by a cooperative society enterprise. registered in Israel.

Publication of 14. The approval of an undertaking as an authorised enterprise approval. under section 13 shall be published in the manner prescribed by regula• tions.

Business licence. 15. The Council may, on conditions which it shall prescribe, also grant a business licence in a free port zone to a person who is not the owner of an authorised enterprise if in its opinion it is necessary so to do for activity in the free port zone. The holder of a licence as aforesaid shall not enjoy the benefits and rights granted by this Law to the owner of an authorised enterprise.

Benefits under 16. (a) The Minister of Finance and the Minister of Commerce the Encourage• and Industry may, upon the recommendation of the Council, approve ment of Capital Investments Law. an authorised enterprise as an approved enterprise or recognised enter• prise for the purposes of the Encouragement of Capital Investments Law, 5719-1959; such an approval shall not be granted save by virtue of this Law. (b) Approval under subsection (a) may be subject to prior con• ditions for its coming into force, as well as to conditions regarding the implementation of the plan which served as the basis for it and regarding subsequent operations.

Exemption from 17. (a) The Minister of Finance may, by regulations, upon the re• direct taxes. commendation of the Council and with the approval of the Finance Committee of the Knesset, exempt an authorised enterprise from the whole or part of any tax, charge, fee, rate or other payment (all these in this section collectively referred to as "taxes") levied on it in respect of its income or assets. Regulations under this section may be general or for particular classes of authorised enterprises.

(b) Exemption as referred to in subsection (a) from taxes of a local authority may only be granted with the consent of the Minister of the Interior.

250 (c) No exemption which can be granted under the Encourage• ment of Capital Investments Law, 5719-1969, shall be granted under this section, but exemption may be granted under this section even to an authorised enterprise not approved as specified in section 16.

18. (a) No indirect taxes shall be imposed on goods imported from Exemption from abroad into, or manufactured in, a free port zone, or on the export of indirect taxes. goods from a free port zone, if the goods are intended for the establish• ment, management, operation, use or business, as may be specified in the instrument of approval, of the authorised enterprise in the free port zone. (b) The aforesaid exemption shall not be granted for a vehicle other than a work vehicle, within the meaning of the Traffic Ordinance1).

19. In a free port zone, the owner of an authorised enterprise shall be Use of foreign entitled to use foreign currency freely, as may be required for the currency. management of the enterprise, unless the Minister of Finance otherwise expressly directs in the instrument of approval.

20. The import of goods from abroad into and the export of goods Exemption from from, a free port zone, within the scope of the business, as specified in the import and export licences. instrument of approval, of an authorised enterprise shall not require an import or export licence.

21. Goods taken out of a free port zone, but not exported, shall be Goods taken out regarded as imported at the time they are so taken out: Provided that of free port 2one. the Minister of Finance may, with the prior approval of the Finance Committee of the Knesset, exempt some, or some classes of, such goods, wholly or in part, from indirect taxes.

22. (a) Goods transferred under the control of the Customs from one Transfer and free port zone to another or to warehouses under the control of the storage of goods. Customs shall not be regarded as imported. (b) Goods intended for an authorised enterprise which were brought for storage to warehouses under the control of the Customs prior to being transferred therefrom to a free port zone shall be regarded as imported into a free port zone.

23. (a) Goods brought into a free port zone, otherwise than from Goods brought to abroad, shall be regarded as exported at the time they are so brought free port zone. and must be paid for in foreign currency : Provided that the Minister of Finance may, with the prior approval of the Finance Committee of the Knesset, direct otherwise. (b) Where a person is regarded under subsection (a) as having exported goods, the Minister of Finance may refrain from granting him the exemptions and reductions accorded to exporters under any Law.

1) Dinei Medinat Yisrael (Nusach Chadash) No. 7, p. 173 — NV vol. I, p. 222; Sefer Ha-Chukkim of 5722, p. 64 — LSI vol. XVI, p. 55.

251 Goods for personal 24. Goods intended for personal consumption, or for sale by retail, in n. a free port zone shall not be brought into a free port zone from abroad״״.consumptio and shall not be exempt from indirect taxes.

CHAPTER FOUR : MISCELLANEOUS PROVISIONS Right of entry 25. (a) A person authorised to enter a port by virtue of his functions into free port or powers under any law may enter a free port zone if such is required zone. for the carrying out of his functions or the exercise of his powers. (b) Without prejudice to the provision of subsection (a), there may enter a free port zone any person in possession of a permit from the Minister of Defence or from a person empowered by the Minister of Defence in that behalf or from the manager of the free port zone.

Control of 26. Control of the bringing of goods into and taking of goods out of bringing in and a free port zone and of the safekeeping of goods in respect of which taking out of goods. any exemption from or concession as to indirect taxes has been granted shall vest in the Customs.

Application of 27. The provisions of sections 75(a) to (c) and 75A of the Encourage­ sections 75 and ment of Capital Investments Law, 5719-1959, shall apply mutatis 75Aof the Encouragement mutandis to authorised enterprises: Provided that ever)' reference in the of Capital said provisions to the Board shall be deemed to be a reference to the Investments Law. Council.

Implementation 28. The Minister of Finance and the Minister of Transport are and regulations. charged with the implementation of this Law and may jointly make regulations as to any matter relating to such implementation.

Regulations made 29. Notwithstanding the provisions of section 28, the Minister of by the Minister of Finance may by himself make regulations concerning — Finance alone. (1) acts which the owner of any goods may do in respect thereof in a free port zone; (2) control of the bringing in, taking out and safekeeping of goods under section 26.

Regulations made 30. Notwithstanding the provisions of section 28, the Minister of by the Minister of Transport may by himself make regulations concerning — Transport alone. (1) fees payable for services and acts performed in a free port zone or in the installations thereof; such regulations shall be made upon the proposal of the Ports Authority in consultation with the Council and in the manner prescribed in section 21 of the Ports Authority Law, 5721-1961 ; (2) arrangements for the entry and exit of vessels and vehicles into or from a free port zone.

GOLDA MEIR ZEEV SHAREF MOSHE CARMEL Prime Minister Minister of Finance Minister of Transport

SHNEUR ZALMAN SHAZAR President of the State

252 (No. 80)

ENCOURAGEMENT OF INDUSTRY (TAXES) LAW, 5729-1969*

CHAPTER ONE : DEFINITIONS 1. In this Law — Definition*.

(1) every term shall have the same meaning as it has in the Income Tax Ordinance (hereinafter referred to as "the Ordi­ nance")1) save as otherwise expressly provided in this Law; (2) "industrial company" means a resident company at least 90 per cent of the income of which in any tax year, except income from defence loan, is from an industrial undertak­ ing owned by it; "industrial undertaking" means an industrial undertaking owned by an industrial company which in any tax year pays therein as work income for non-productive activities, as specified in the Schedule, plus the amount of depreciation of the assets used for such activities, a total amount not exceeding 25 per cent of the total amount of the work income paid by the company in the undertaking plus the amount of depreciation of the assets of the undertaking; for this purpose, "depreciation" means the depreciation allowance under the ;(1941־ ,Income Tax (Depreciation) Rules "business asset" means machinery or equipment of an indus­ trial company used for the industrial undertaking owned by it, but does not include a vehicle, other than a work vehicle within the meaning of the Traffic Ordinance3), nor office furniture or office equipment; "industrial undertakings in the same line of production" means — (1) industrial undertakings belonging to the same branch of the economy or (2) a group of industrial undertakings to each of which at least one of the following applies : (a) at least 75 per cent of its turnover derives from products thereof that are used as raw material or intermediate material for the products of another undertaking in the group; (b) it uses, as raw material or intermediate material for its products, such products of another

* Passed by the Knesset on the 1st Av, 5729 (16th July 1969) and published in Sefer Ha-Chukkim No. 570 of the 10th Av, 5729 (25th July, 1969), p. 232; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 841 of 5729, p. 276. 1) Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120; NV vol. I, p. 145. 2) P.G. of 1941, Suppl. n, No. 1131, p. 1505 (English Edition). 3) Dinei Medinat Yisrael (Nusach Chadash) No. 7, p. 173; ATP vol. I, p. 222.

253 undertaking in the group as account for at least 75 per cent of the turnover of the other undertaking; "holder of controlling interest" has the same meaning as in section 32(9) of the Ordinance.

CHAPTER Two : DEPRECIATION ALLOWANCE AND DEDUCTION

Right to depre. 2. (a) An industrial company which proves to the satisfaction of the elation allowance Assessing Officer that in or after the tax year 1968 it acquired a new and deduction. business asset shall be entitled to a depreciation allowance in respect of that asset at a rate as set out hereunder : (1) in the case of an Israel-made asset — 40 per cent of the original price of the asset in the first year in which the industrial undertaking used the asset, and 20 per cent of the original price of the asset in each of the succeeding three years: (2) in the case of a foreign-made asset — 25 per cent of the original price of the asset in each of the first two years in which the industrial undertaking used the asset, and 12£ per cent of the original price of the asset in each of the succeeding four years. (b) An industrial company which proves to the satisfaction of the Assessing Officer that in or after the tax year 1968 it acquired in good faith a patent, or a right to exploit a patent, or any know-how, which is used for the development or advancement of the undertaking shall be entitled to a deduction at the rate of 12£ per cent of the original price of such patent, right or know-how for eight years, from the tax year in which it began to use it.

Conditions of 3. (a) Where in respect of a particular asset an industrial com­ depreciation pany has opted for a depreciation allowance under section 2(a), it shall allowance. not, in respect of the same asset, be entitled to a depreciation allowance under section 21 of the Ordinance — including depreciation under section 42 or 43 of the Encouragement of Capital Investments Law, 5719-19591) — or to an allowance under the Income Tax (Initial Allowance in Respect of New Structures, Machinery and Equipment) .and shall not be entitled to revoke its option ,(5727-1967־־ ,Regulations

(b) Where in a particular tax year a company ceases to be an industrial company before the whole of the depreciation under section 2(a) has been allowed, it shall, from that year, cease to be entitled to the allowance, but it shall be entitled to deduct the balance of the depreciation under section 21 of the Ordinance and, for the purposes of section 23 of the Ordinance, the depreciation allowed under section 2(a) shall be regarded as depreciation allowed under the Ordinance.

Restriction as 4. The provisions of this chapter shall not apply to amounts deduct­ to allowance. ible as expenses under any law.

1) Sejer Ha-Chukkim of 5719, p. 234; LSI vol. XVIII, p. 258. 2) Kovetz Ha-Takkanot of 5727, p. 1229.

254 5. For the purpose of calculating a deduction in respect of the Calculation of replacement of machinery or equipment under section 27 of the Ordi­ capital gain and deduction in nance and for the purpose of calculating a capital gain under Chapter respect of Five of the Ordinance, a depreciation allowance or deduction granted replacement. under this chapter shall be regarded as a depreciation allowance under .section 21 of the Ordinance ׳

CHAPTER THREE : ADDITIONAL ALLOWANCE

Right to an industrial company ־(Subject to the provisions of section 15(a .6 which acquired a business asset before the 16th Cheshvan, 5728 (19th additional allowance. November, 1967) shall, in respect of that asset, be entitled to a deduction as specified in section 7, 8 or 10 in addition to the depreciation allowance due to it from the tax year 1968 onwards under section 21 of the Ordinance.

7. Where a business asset was acquired by or on behalf of the com­ Additional pany with dollars of the United States of America (hereinafter referred allowance if asset acquired to as "dollars"), the additional allowance shall be the amount by which with dollars. the depreciation which the company would have been entitled to deduct in respect of that asset in the year in question had the original price of the asset been fixed in pounds at the exchange rate of 3.50 pounds per dollar of the acquisition price exceeds the depreciation which it would have been entitled to deduct according to an exchange rate of 3 pounds per dollar of the acquisition price.

8. Where a business asset was acquired by or on behalf of the com­ Additional allowance if asset pany in foreign currency other than dollars, then, for the purpose of acquired with calculating the additional allowance, the asset shall be deemed to have other foreign been acquired with dollars, and the acquisition price shall be calculated currency. as provided in section 7 according to the actual exchange rate of that currency to the dollar on the 28th Cheshvan, 5728 (1st December, 1967).

9. For the purposes of sections 7 and 8, a business asset shall be Acquisition under certain condi­ deemed to have been acquired with foreign currency if acquired directly tions deemed from an importer who had bought it with foreign currency under a to be permit from a competent authority under the Defence (Finance) acquisition with Regulations, 19411). The price paid for the asset by the importer shall foreign currency. be regarded as the price thereof in foreign currency, provided that the company furnishes proof of that price.

10. Where a business asset was acquired by the company with Additional currency which is legal tender in Israel, the additional allowance shall be allowance if fixed according to the year in which the company acquired the asset, asset acquired with Israeli as follows: currency. (1) If the asset was acquired in the period between the 16th Nisan, 5713 (1st April, 1953) and the 27th Adar Bet, 5725 (31st March, 1965, the additional allowance shall be 25 per cent of the

1) P.G. of 1941, Suppl. II, No. 1138, p. 1647 (English Edition).

255 amount of depreciation to which the company was entitled in the year in question under section 21 of the Ordinance; (2) if the asset was acquired in the period between the 28th Adar Bet, 5725 (1st April, 1965) and the 10th Nisan, 5726 (31st March, 1966), the additional allowance shall be 10 per cent of the amount of depreciation to which the company was entitled . in the year in question under section 21 of the Ordinance.

Restriction as 11. Where in any tax year a company ceases to be an industrial com• to allowance. pany, it shall from that year cease to be entitled to an allowance under this chapter.

Calculation of 12. For the purpose of calculating a deduction in respect of the capital gain and replacement replacement of machinery and equipment under section 27 of the allowance. Ordinance, and for the purpose of calculating, under Part Five of the Ordinance, a capital gain from the sale of a business asset in respect of which an additional allowance had been permitted under this chapter, the amount of the additional allowance shall be deemed to be an addi• tional consideration received from the sale of the asset: Provided that the amount of the tax shall not exceed 50 per cent of the amount of what would have been the capital gain if the additional allowance were not regarded as an additional consideration received from the sale of the asset.

CHAPTER FOUR : DEDUCTION OP LINKAGE DIFFERENTIALS

Definitions. !3. ln this chapter — "the determining day" means the 16th Cheshvan, 5728 (19th November, 1967); "loan" means a loan received in good faith and meeting all the following requirements: (1) it was received on or before the determining day and repaid, wholly or in part, after that day; (2) it was received by an industrial company and is used by it in producing its income from the industrial undertaking; (3) the lender is one of the following: (a) the State; (b) a body of persons which holds no controlling interest in the industrial company and is not a partner therein and in which the company holds no controlling interest; (c) a parent company, within the meaning of para• graph (2) of the definition of "parent company" in section 22, which has taken the loan from a financial institution, within the meaning of the Bank of Israel Law, 5714-19541), and transferred it wholly to the sub• sidiary company;

1) Sefet Ha-Chukkim of 5714, p. 192; LSI vol. VIII, p. 163.

256 "foreign-currency-linked loan" means a loan the principal of which is linked to the official rate of exchange, or which was received in foreign currency with the approval of the Controller of Foreign Exchange, within the meaning of the Defence (Finance) Regulations, 1941, and must be repaid in foreign currency; "cost-of-living index" has the same meaning as in the Defence Loan Law, 5717-19561); "linkage differentials" means — (1) an amount added to the principal of a foreign-currency- linked loan as a result of a change in the exchange rate of the currency in question since the determining day; (2) an amount added to the principal of a loan linked to the cost-of-living index as a result of an increase of that index in the period between the determining day and the 23rd Adar Bet, 5730 (31st March, 1970), and repaid after the determining day; (3) an amount added to the principal of a loan linked to another index as a result of an increase of that index in the period specified in paragraph (2) and repaid after the determininig day, but not more than the amount which would have been added as aforesaid had the loan been linked to the cost-of-living• index.

14. The amount of linkage differentials paid by an industrial com• Deduction of pany in the tax year 1968 or in any subsequent tax year shall be deducted linkage differentials. from its chargeable income for the tax year in which it is paid; for this purpose, linkage differentials paid in the period between the determining day and the 3rd Nisan, 5728 (31st March, 1968) shall be deemed to have been paid in the tax year 1968.

15. (a) An industrial company which has received a loan for the Linked loan for acquisition of acquisidon of a business asset and in respect of such loan may become business asset. liable to pay linkage differentials shall, at its option, be entitled to a deduction under section 14 in respect of such loan or to an additional allowance under section 6 in respect of such asset. (b) An industrial company shall be deemed to have received a loan for the acquisition of a business asset, all as specified in subsection (a), if on the determining day it had a business asset in respect of which it was then entitled to a depreciation allowance and the loan was received within one year before or one year after the acquisition of the asset. The same shall also apply if the loan was received at a different time, unless the industrial company proves that it has used the loan for a purpose other than the acquisition of a business asset.

16. The amount of the deduction to which an industrial.company is Linkage profits. entitled under this chapter in respect of linkage differentials paid by it in any tax year shall be reduced by the amounts which it is entitled to

1 ) Sefer Ha-Chukkim of 5717, p. 8 ; LSI vol. XI, p. 5.

257 receive in that tax year, as an addition to a debt due to it and in accordance with the terms of the indebtedness, as a result of a change in the rate of exchange of the currency, the cost-of-living index or the other index.

Waiver of linkage 17. An amount of linkage differentials which has been allowed and differentials. which is subsequently waived or cancelled shall be regarded as income in the year in which it is waived or cancelled.

Application of 18. The provisions of this chapter shall not apply to linkage differen• provisions of tials which are expenditure or income under the Ordinance. Ordinance.

CHAPTER FIVE : INCOME TAX OF INDUSTRIAL COMPANY

Reduced income 19. Where in any tax year an industrial company invests any amounts tax. in the advancement and development of its industrial undertaking, such amount of its chargeable income from its industrial undertaking as is equal to its investment as aforesaid shall, notwithstanding the provisions of sections 127(a) of the Ordinance, be chargeable with income tax at the rate of 15 agorot per pound, provided that within five years after the tax year in which the chargeable income was produced the company meets the following two requirements: (1) It invests an amount equal to at least 30 per cent of the chargeable income charged with the reduced tax in fixed assets of and used for the purposes of the undertaking; (2) it capitalises profits in the amount stated in paragraph (1) by the issue of shares.

Restriction on 20. (a) Where in any tax year a company has paid or debited any right to reduction of tax. amounts, either directly or indirectly, to the holder of a controlling in• terest, those amounts shall be deducted from such part of its chargeable income as is chargeable in that tax year with tax at a reduced rate as provided in section 19. (b) The provision of subsection (a) shall not apply to : — (1) amounts permitted as expenditure; (2) amounts distributed as dividend; (3) the repayment of a loan made by the holder of a con• trolling interest for a period not exceeding one year; (4) amounts which the holder of a controlling interest held, or with which he stood debited, for less than three months in any one tax year.

Payment of differ• 21. An industrial company which for any tax year paid reduced tax ence where under section 19 and which has not met the requirements of that section requirements of section 19 are shall upon submitting the return under section 131 of the Ordinance for not met. the tax year following the expiration of five years from that tax year pay the tax not charged upon it by reason of the provisions of that section, plus interest at the rate of nine per cent per annum from the expiration of that tax year until the date of payment.

258 CHAPTER SIX : CONSOLIDATED RETURNS 22. In this chapter — Definitions. "control" means the right to at least two thirds of the voting power and of the right to appoint directors; "parent company" means — (1) an industrial company controlling another industrial company, the industrial undertakings owned by them being in the same line of production; (2) a company, other than an industrial company, controll• ing an industrial company and at least 80 per cent of whose assets are invested, in the form of share capital or of loans for at least three years, in industrial companies in which it has at least 50 per cent of the voting power and of the right to profits; "subsidiary company" means an industrial company controlled by a parent company.

23. (a) A parent company within the meaning of paragraph (1) of Right to make consolidated the definition of "parent company" in section 22, as well as a parent return. company within the meaning of paragraph (2) of the said definition if the industrial undertakings of all the subsidiaries controlled by it are in the same line of production, may make the return under section 131(a)(3) of the Ordinance in consolidated form if during the tax year in respect of which the return is made they notify the Assessing Officer, in writing, of their intention to do so : Provided that if control by the parent com• pany over the subsidiary company was obtained after the coming into force of this Law, they may only make a consolidated return from the third tax year after such control was obtained.

(b) Where the industrial undertakings of the subsidiary com• panies of a parent company within the meaning of paragraph (2) of the definition of "parent company" are not all in the same line of production, the parent company may only make a consolidated return with the subsidiary company in which the greatest of all the amounts of its invest• ments in subsidiary companies is invested. For this purpose, several sub• sidiary companies whose industrial undertakings are in the same line of production shall be regarded as one subsidiary company.

24. (a) Where a consolidated return has been made, the chargeable Assessment according to income or adjusted loss of each of the companies shall be regarded as the consolidated chargeable income or adjusted loss of the parent company, and the return. assessment shall be made upon the parent company. (b) The making of a consolidated return shall not relieve any of the companies of the duty to make a separate return under section 131 (a)(3) of the Ordinance, and the tax due from the parent company as aforesaid may, if necessary, be collected from the subsidiary company, although it has not been assessed.

25. (a) Where a consolidated return has been made for a particular Method not to tax year, a consolidated return shall also be made for the subsequent tax be changed.

259 years unless the Assessing Officer has otherwise directed on the applica• tion of the parent company or the subsidiary company and has prescribed the adjustments to be made accordingly.

(b) The Assessing Officer may also direct as specified in sub• section (a) on his own motion if the conditions entitling to the making of a consolidated return have changed or if he sees special reasons for issuing a direction as aforesaid and sets out those reasons in writing.

Prescribing 26. The Minister of Finance may, by regulations, prescribe rules for the purposes of this chapter and, in particular, as to — (1) the limitation of the amount of losses of the subsidiary company permitted to be set off against the income of the parent company to the amount of the investment of the parent company in the subsidiary company; (2) the charging of the parent company with debts remitted to the subsidiary company upon its severance from the parent com• pany, or upon its winding-up, and which have been set off in the past; (3) the addition to the amount of the consideration, for the purposes of a capital gain under Chapter Five of the Ordinance, of the amount of losses of the subsidiary company permitted to be set off against income of the parent company; (4) the postponement of the assessment or collection of the tax, and the postponement of the set-off of losses, in respect of trans• actions between companies which have made a consolidated return, all as shall be set out in the regulations; (5) the calculation of the tax with due regard to the distribution of dividend between companies which have made a consolidated return.

Losses incurred 27. Notwithstanding the provisions of sections 23 and 24, there shall before making of not be included in a consolidated return any loss which the parent com• consolidated return. pany or subsidiary company incurred before the tax year for which the return is made and which is capable of being carried forward to sub• sequent years under section 28 of the Ordinance. A loss as aforesaid shall be permitted to be set off against the income of the company by which it was incurred, and only the balance of the chargeable income which remains after the set-off shall be included in the consolidated return.

CHAPTER SEVEN : MERGER OF COMPANIES

Definitions. 28. In this chapter — "merger" means the transfer of all the assets and liabilities of one industrial company (hereinafter referred to as "the transferor company") to another industrial company (hereinafter referred to as "the transferee company") or of a group of industrial companies (hereinafter referred to as "the transferor companies") to another company established for the sole purpose of the merger (herein• after referred to as "the new company"), the transferor company

260 and the transferee company, or the transferor companies, as the case may be, being owners of industrial undertakings in the same line of production; "asset" means any property, whether immovable or movable, and any vested or contingent right or interest and includes a share in an asset, whether such property, right, interest or share be in Israel or outside Israel; "approved merger" means a merger approved in accordance with section 30; "merger committee" means a committee of three appointed by the Minister of Finance, the chairman of which shall not be a State employee.

29. (a) An applicant for approval of a merger shall present to the Application for merger committee a detailed description of the merger operations, as well approval. as every detail and document required by it for its decisions as to the approval applied for. (b) An application for approval of a merger may be made before, or within one year after, the carrying out of the merger. For this purpose, "the carrying out of the merger" means the making of an order of the Court under section 118 of the Companies Ordinance1).

30. (a) A merger committee shall give advance approval for a Approval of merger, or shall approve an accomplished merger, if, in its opinion, the merger, merger is in the interests of the economy of the State and its main object is the unified management and operation of the industrial undertakings of the companies wishing to merge. (b) A merger committee shall approve an accomplished merger only if the transfer of the assets and liabilities has been approved by the Court by order under section 118 of the Companies Ordinance and the order prescribes that the transferor company or transferor companies shall be wound up without liquidation and that the only consideration for the transfer shall be the allotment of shares by the transferee company or new company to the shareholders of the transferor company or transferor companies. (c) The committee may make the grant of approval dependent upon the fulfilment of prior conditions prescribed in the instrument of approval and may also prescribe conditions in respect of the carrying out of the merger and subsequent acts. (d) Where advance approval has been given for a merger, the committee shall finally approve the merger after it has been carried out, provided that it has been carried out in accordance with the advance approval and that the provisions of subsection (b) have been complied with.

31. Where a merger has been approved, the benefits under this chapter Right to shall inure notwithstanding the provisions of any law. benefits.

1) Laws of Palestine vol. I, cap. 22, p. 161 (English Edition).

261 Exemption from 32. No tax shall be imposed on income derived from a merger. income tax.

Determination 33. Where a transferee company or new company sells any asset, of original within the meaning of Part Five of the Ordinance, transferred to it upon price. the merger, the following provisions shall apply : (1) There shall be regarded as the original price of the asset, • according to section 21 or section 88 of the Ordinance, or as the amount expended for the acquisition of the old machinery or the equipment, according to section 27 of the Ordinance, the balance of the original price of the asset, as in the hands of the transferor company or transferor companies immediately before the transfer; (2) the period of the holding of the asset, for the purpose of calculating a capital gain under Part Five of the Ordinance, shall be determined according to the date at which the asset was ac• quired by the transferor company or transferor companies.

Determination of 34. Where a transferee company or new company sells any trading cost price. stock, within the meaning of section 85 of the Ordinance, transferred to it upon the merger, there shall be regarded as the cost price of the trading stock the amount at which its value was calculated immediately before the transfer for the purpose of determining the chargeable income of the transferor company or transferor companies.

Capital gain from 35. Where a person sells shares of a transferee company or new com• sale of shares. pany, allotted to him upon the merger, the following provisions shall apply: (1) The original price of the shares which he had in the trans• feror company or transferor companies shall be regarded as the original price of the shares sold; (2) the period of the holding of the shares sold shall be deter• mined according to the date at which he acquired the shares in the transferor company or transferor companies.

Loss incurred 36. A loss which the transferor company or transferor companies before merger. incurred before the merger, including a loss incurred in the year in which the merger was effected, and which is capable of being carried forward to subsequent years under section 28 of the Ordinance may be set off against the income of the transferee company or new company in subsequent years: Provided that the amount set off shall not in any one year exceed 20 per cent of the loss or 50 per cent of the profits of the transferee company or new company, whichever is less.

Benefits under 37. Benefits and concessions under the Encouragement of Capital Laws for the Investments Law, 5710-19501), or the Encouragement of Capital Invest• Encouragement of Capital ments Law, 5719-1959, to which the transferor company or transferor Investments. companies would have been entitled but for the merger shall be granted to the transferee company or new company if the Board of the Invest-

1) Seier Ha-Chukkim of 5710, p. 129; LSI vol. Ill, p. 93.

262 ment Centre so approves and on such conditions and with such adjust• ments as it shall prescribe.

38. (a) In this section, every term shall have the same meaning as it Exemption from has in the Land Appreciation Tax Law, 5723-19631). land appreciation tax and adjust• (b) No tax shall be imposed on appreciation accruing upon ments. a merger. (c) There shall be regarded as the acquisition value and acquisi• tion date of a real estate right acquired by a transferee company or new company upon the merger such acquisition value and acquisition date as would have been determined if that right had been sold by the transferor company or transferor companies before the merger. (d) In the case of an association act relating to an association right acquired upon a merger by the transferee company or new company, there shall be regarded as the acquisition value and acquisition date such acquisition value and acquisition date as would have been determined if the association act relating to that association right had been done by the transferor company or transferor companies before the merger.

39. A transfer of land upon a merger shall not be charged with land Exemption from transfer fee under the Land Transfer Ordinance2) or with additional land transfer fee and additional tax, within the meaning of the Land Appreciation Tax Law, 5723-1963. tax.

40. Upon a merger, the registration of the new company, its memo• Exemption from randum of association and the allotment of shares by it, or an increase of registration fee, capital fee and the capital of the transferee company and the allotment of shares by it, stamp duty. shall be exempt from registration fee and capital fee under the Com• panies Ordinance and from stamp duty: Provided that this exemption shall not apply in respect of amounts which in the opinion of the merger committee exceed the amounts necessarily resulting from the merger as such.

41. Where the Assessing Officer is satisfied that a merger has not been Restriction on carried out in accordance with the conditions of approval, or that the grant of benefits. facts declared before the merger committee are not correct, he shall notify the merger committee to such effect, and he may refuse to permit the grant of benefits under sections 32 to 37 and prescribe the adjustments to be made accordingly.

42. Where the merger committee is satisfied that a merger has not Cancellation been carried out in accordance with the conditions of approval or that of benefits. the facts declared before the merger committee are not correct, it may cancel the approval prospectively or retrospectively; and upon doing so, it may decide that the fees and taxes in respect of which benefits have been granted under this chapter shall be paid, wholly or in part, at times to be prescribed, plus interest at the maximum rate permitted under the

1) Sefer Ha-Chukkim of 5723, p. 156; LSI vol. XVII, p. 193. 2) Laws of Palestine vol. II, cap. 81, p. 881 (English Edition).

263 Interest Law,5717-1957-), from the day on which they would have been payable but for the exemption.

Appeal. 43. (a) A person who considers himself aggrieved by a decision of the Assessing Officer under section 41 or by a decision of the merger committee under section 42 may, within thirty days from the day on which the decision was delivered to him, appeal to the District Court as if the decision were an order under section 152 (b) of the Ordinance. (b) If the appeal is against a decision of the merger committee, the rules of procedure in appeals against a decision of the Assessing Officer shall apply mutatis mutandis.

CHAPTER EIGHT : GENERAL

Filing of claim 44. (a) A person who, not having previously been allowed benefits for benefits. under this Law, claims benefits in a particular tax year, shall pay for that year, under section 182 of the Ordinance, the tax which would have been chargeable but for the provisions of this Law. (b) The Assessing Officer shall, within six months from the date on which the return for the year in question is filed, examine the claimant's entitlement to benefits under this Law. If the Assessing Officer does not, within the said period, decide that the person who made the return is not entitled to benefits, that person shall, pending the assess• ment for that year, be treated as if he were entitled to benefits under this Law, and when the assessment has been made the accounts for that year shall be settled in accordance therewith; from then onwards, the accounts shall be settled in accordance with the provisions of this Law.

Condition of 45. Benefits under this Law shall only be granted to a person who has benefits. kept proper account-books.

Objection. 46. A person who considers himself aggrieved by a decision of the Assessing Officer as specified hereunder may lodge objection with an objection committee : (1) a decision not to allow a benefit under this Law on one of the following grounds : (a) the company is not, or has ceased to be, an industrial company as defined in section 1 ; (b) the patent or know-how is not required for the develop• ment or advancement of the industrial undertaking, as provid• ed in section 2 (b); (c) amounts invested by the company have not been invested in the development or advancement of the industrial under• taking, as provided in section 19; (d) the companies wishing to make a consolidated return are not a parent company and subsidiary company, within the meaning of section 22:

I) Sefer Ha-Chukkim of 5717, p. 50; LSI vol. XI, p.46.

264 (e) the companies wishing to make a consolidated return do not fulfil the terms and conditions prescribed for the purposes of a consolidated return under section 26; (/) the companies wishing to make a consolidated return or to merge do not own industrial undertakings in the same line of production, within the meaning of section 25; (2) a decision under section 25 not to enable the discontinuance of consolidated returns.

47. (a) The Minister of Justice shall, in consultation with the Objection Minister of Finance, appoint objection committees of three members committee. each for the purposes of section 46. The chairman of a committee shall be a District Court Judge, and at least one of the other members shall not be a State employee. (b) The decision of a committee shall be final. (c) Objection committees shall have the powers conferred by sections 9 to 11 of the Commissions of Inquiry Law, 5729-19681). (d) A committee may charge the parties with the costs of the -of-work־objection, including advocate's fee, travelling expenses and loss ing-time allowance of witnesses. (e) The Minister of Justice may make regulations as to the procedure of objection committees, the remuneration of their members and an objection fee.

48. The provisions of the Ordinance shall apply to this Law as if Application of this Law were a part of the Ordinance, with the modifications resulting provisions of Ordinance. from the provisions of this Law.

49. The provisions of this Law relating to an industrial company shall Application of also apply, mutatis mutandies, to a resident company at least 90 per Law to marine and air transport cent of whose income, other than income from defence loan, is from one and to hotels. of the following: (1) the operation of vessels in international transport, provided that the majority of the vessels are registered, or required to be registered, in Israel; (2) the operation of aircraft in public transport, provided that the majority of the aircraft are registered, or required to be registered, in Israel; (3) a hotel, within the meaning of the Commodities and Services (Control) (Hotels) Order, 5727-19672), for which the company has obtained approval within the meaning of the Commodities and Services (Control) (Identification of Businesses for the Sale of .(s־ Goods and Provision of Services to Tourists) Order, 57271967

1 ) Sefer Ha-Chukkim of 5729, p. 28 ; supra, p. 32. 2) Kovetz Ha-Takkanot of 5727, p. 1150. 3) Kovetz Ha-Takkanot of 5727, p. 1158.

265 Application to 50. (a) Notwithstanding the provisions of section 1, a cooperative undertakings society classified by the Registrar of Cooperative Societies as a cooperative owned by cooperative society for agricultural settlement and owning an undertaking engaged society for in industry shall, for the purposes of Chapters Two, Three and Four, be agricultural regarded as an industrial company, and the undertaking shall, for the settlement. said purposes, be regarded as an industrial undertaking, even where the conditions set out in the definition of "industrial company" are not fulfilled, provided the undertaking keeps separate accounts and fulfils the other conditions set out in the definition of "industrial undertaking". (b) The Minister of Finance may, with the approval of the Finance Committee of the Knesset, make regulations for the application of the provisions of this Law to industrial companies and industrial undertakings as referred to in subsection (a).

Application to 51. In relation to industrial companies which are cooperative societies cooperative and to companies as referred to in section 49, the provisions of this Law societies. shall apply mutatis mutandis and with such adaptations as the Minister of Finance, with the approval of the Finance Committee of the Knesset, may prescribe by regulations.

Regulations. 52. (a) The Minister of Finance is charged with the implementation of this Law and may make regulations as to any matter relating to such implementation, including regulations as to — (1) the modes of proving a right to benefits and the conditions of granting them; (2) the modes of investing in the development or advancement of an industrial undertaking; (3) the circumstances in which a company may continue to be regarded as an industrial company even if, in a particular year, the percentage of its income or the percentage of work income and depreciation, as specified in the definition of "industrial under• taking", exceeded the maximum specified in that definition, provid• ed that no material change has occurred in the character and activity of the undertaking and the company. (b) Regulations under this section shall, unless otherwise prescrib• ed, have effect from the date of the coming into force of this Law.

Variation of 53. The Minister of Finance may, by order, with the approval of the Schedule and of Finance Committee of the Knesset, make additions to and deletions rates. from the Schedule and, in respect of particular classes of undertakings or companies, vary the rates prescribed in the definitions of "industrial undertaking" and "industrial company" and in the definition of a com• pany dealt with by section 49.

Commencement. 54. This Law shall have effect from the tax year 1968, and a person who claims benefits, shall make application within six months from the date of its publication in Reshumot; for the purposes of section 44, the date on which the application is filed shall be deemed to be the date of the filing of the return for the tax year 1968.

266 SCHEDULE (Section 1) Non-Productive Activities

Packing, other than packing for the purpose of calculating the expenses of a packing house Building Commerce Transport, other than transport for the purpose of calculating the ex• penses of a company as referred to in section 49(1) or (2) Warehousing Communications Sanitary Services Personal services, other than personal services for the purpose of calculating the expenses of a hotel

GOLDA MEIR ZEEV SHAREF Prime Minister Minister of Finance SHNEUR ZALMAN SHAZAR President of the State

(No. 81)

ENCOURAGEMENT OF CAPITAL INVESTMENTS (AMEND• MENT No. 6) LAW, 5729-1969*

1. In section 9 of the Encouragement of Capital Investments Law, Amendment of 5719-19591) (hereinafter referred to as "the principal Law"), the words section 9. "six members" shall be replaced by the words "eight members".

2. In section 21 of the principal Law, the closing passage beginning on*??"' °' with the words "an approved enterprise" shall be replaced by the sec JOn ' following: "(1) an approved enterprise or recognised enterprise; (2) an approved property; (3) an approved investment; (4) an approved loan; as may be specified in the instrument of approval.".

* Passed by the Knesset on the 1st Av, 5729 (16th July, 1969) and published in Sefer Ha-Chukkim No. 572 of the 10th Av, 5729 (25th July, 1969), p. 242; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 836 of 5729, p. 238. 1) Sefer Ha-Chukkim of 5719, p. 234 — LSI vol. XIII, p. 258; Sefer Ha- Chukkim of 5721, p. 78 — LSI vol. XV, p. 73; Sefer Ha-Chukkim of 5723, p. 14 — LSI vol. XVIII, p. 17; Sefer Ha-Chukkim of 5725, p. 39 — LSI vol. XIX, p. 39; Sefer Ha-Chukkim of 5727, p. 62 — LSI vol. XXI, p. 61; Sefer Ha-Chukkim of 5728, p. 36 — LSI vol. XXII, p. 33.

267 Replacement of 3. Section 23 of the principal Law shall be replaced by the following section 23. section:

"Recognised 23. The provisions of this Law relating to an approved enterprise enterprise shall also apply — and approved property. (1) to a recognised enterprise, except as regards sections 40B and 62 : Provided that the Board may also grant it exemption under section 62; (2) to an approved property, except as regards sections 22, 40B and 62.".

Replacement of 4. The heading of Chapter Four of the principal Law shall be re­ title of Chapter Four. placed by the following heading : "Chapter Four: Deferment of Payment of Fees and Stamp Duty".

Amendment of 5. In section '27A of the principal Law, after the words "under section 27A. section 26 or 27", there shall be inserted the words "or where the pay­ ment of stamp duty has been deferred under section 29A".

Amendment of 6. In section 28 of the principal Law — section 28. (1) after the words "under section 27" in the opening passage, there shall be inserted the words "or stamp duty the payment of which has been deferred under section 29A"; (2) the words "the fees, plus interest... from the day of the registration of the company or the registration of the increase of its capital to the day of the actual payment, have been paid" in paragraph (1) shall be replaced by the words "the fees and the stamp duty, plus interest... from the day of the registration of the company or the registration of the increase of its capital or the day on which the return as to the allotment of the shares was filed, as the case may be, to the day of the actual payment, have been paid".

Addition1 of 7. The following section shall be inserted after section 29 of the section 29A. principal Law:

"Stamp duty 29A. (a) Where the establishment of a company with a m ari approved project, the ׳s -nc-uc-ec־ ־ta־ndumandon share caP° return'as'to °n payment of such part of the amount of the stamp duty as allotment of is in excess of 10,000 pounds shall be deferred for five shares. years in respect of each of the following: (1) the memorandum of association; (2) a return of the allotment of shares which relates to the share capital which was regis­ tered in the memorandum of association at the time of the registration of the company and in respect of which approval has been given by the Board. (b) Where the payment of stamp duty has been deferred under subsection (a), the company shall enter

268 the amount of the deferred duty in its register of mortgag­ es, and the provisions of section 133A of the Companies Ordinance1) shall apply to the deferred duty as if it were a fee.".

8. In section 40A of the principal Law, the following shall be inserted Amendment of section 40A. at the end: " "industrial building" means a building erected in accordance with an approved project and in respect of which it has been proved to the Director that — (1) its construction was completed after the 3rd Nisan, 5728 (1st April, 1968); (2) it was not sold before it was first let; (3) the whole of it or the main part of its area, being a proportion prescribed in the instrument of approval, was first let to an approved enterprise, being an industrial enterprise, for such period and on such conditions as is prescribed in the instrument of approval.".

9. In section 40B of the principal Law, the words "or an industrial Amendment of section 40B. building" shall be inserted after the words "being an industrial enterprise".

10. In section 40C of the principal Law, the words "or of the in­ Amendment of dustrial building" shall be inserted after the words "of the property of section 40C. the enterprise".

11. In section 40E of the principal Law, the words "for the imple­ Amendment of mentation of the approved project and the conditions of approval" shall section 40E. be replaced by the words "to ensure the return of the grant-in-aid in the event of its cancellation under section 75A(a)".

the following shall be inserted Amendment of ־In secdon 40F of the principal Law .12 at the end : "or that the owner of the industrial building has let it to an section 40F. approved enterprise, being an industrial enterprise".

13. In section 43A of the principal Law, the words "or in respect of Amendment of an industrial building" shall be inserted after the words "in respect of the section 43A. property of the enterprise".

14. In section 47A of the principal Law — Amendment of section 47A. (1) the words "for a period of not less than twelve years" shall be inserted after the words "or debenture" in subsection (a); (2) paragraphs (a) and (6) of subsection (b)(2) shall be replaced by the words: "but in respect of income from dividend, exemption shall ony be granted until the 18th Tevet, 5735 (1st January, 1975).".

1) Laws of Paleestine vol. I, cap. 22, p. 161 (English Edition): Sefer Ha• Chukkim of 5725, p. 124 — LSI vol. XIX, p. 121.

269 Replacement of 15. Section 52 of the principal Law shall be replaced by the following section 52. secdon:

"Income from 52. Where an individual, having become a resident of abroad of Israel, receives any income derived from, or accrued, individual, outside Israel or has a capital gain from the sale of any property situated outside Israel and which was owned by him immediately before he became a resident, the Minister of Finance shall, upon his application, exempt him from tax thereon, wholly or in part, for seven years from the day on which he became a resident.".

Addition of 16. The following shall be inserted after Chapter Seven "A" : Chapter Seven "B". "CHAPTER SEVEN "B" : TAX BENEFITS FOR INTERNATIONAL TRADING COMPANIES AND THEIR SHAREHOLDERS

Definitions. 53E. In this chapter — "international trade" means trade wholly carried on outside Israel and does not include export from or import to Israel; "international trading company" means a company registered in Israel as a foreign company and all the business of which is in international trade; for this purpose, other business, subsidiary to the internadonal trade and approved in advance by the Board, shall not be regarded as business of the company; "non-resident" includes a person who was a non• resident at the time he acquired shares in an international trading company; "tax" means income tax and includes tax on a capital gain and any other tax imposed on income; other terms have the same meaning as in the In• come Tax Ordinance1) (hereinafter referred to as "the Ordinance"). Benefits to 53F. The Minister of Finance may, upon the recom• company and mendation of the Board, exempt from tax, wholly or in its shareholders. part — (1) such income of an international trading com• pany as has its source in international trade and is only regarded as derived from Israel under section 5(1) of the Ordinance; this exemption may be granted for a period not exceeding ten years from the first tax year in which the company had a chargeable income; (2) dividend distributed to a non-resident by an international trading company out of income in

1) Dinei Medinat Yisrael (Nusach Chadash) No. 6, p. 120; NV vol. I, p. 145.

270 respect of which exemption has been granted under paragraph (1); if the income of the company includes also other income, the exempdon shall apply only to such part of the dividend as bears to the whole of the dividend the same propordon as the company's income from international trade bears to the whole of its income; this exemption may be granted for a period not exceeding twenty years from the first tax year in which the company had a chargeable income.

Exemption 53G. Where exemption under section 53F has been from capital granted, a capital gain shall also be exempt from tax if — gains tax. (1) it accrued to the company, from the sale of property situated outside Israel, in the period of the exemption granted for the income of the company; (2) it accrued to a non-resident, from the sale of shares in the company, in the period of the exemption granted in respect of the dividend.".

17. In paragraph (1) of section 74(b) of the principal Law, the opening Amendment of passage, up to the words "shall be otherwise determined" shall be replaced section 74. by the following: "the Board shall prescribe the manner in which that part of the chargeable income of the enterprise which is to be regarded as the chargeable income of the approved part shall be calculated; so long as the Board has not prescribed the mode of calculation, there shall be regarded as the chargeable income of the approved part such part of the chargeable income of the whole enterprise as bears to the whole of such income the same proportion as the value of the fixed assets in the approved part bears at the time in question to the value of the fixed assets of the whole enterprise.".

18. In section 75A of the principal Law, subsection (d) shall be re• Amendment of marked as subsection (e) and the following subsection shall be inserted section 75A. before it: "(d) Where a company has received a grant-in-aid, and an order for its winding-up is made before it has met the requirements referred to in subsection (a), the winding-up order shall be deemed to be a decision of the Board to cancel the grant-in-aid under the said subsection unless the Board decides not to cancel the grant- in-aid or to cancel it in part only.".

19. In section 94 of the principal Law, after the expression "(the Amendment of period between those two dates is hereafter in this section referred to as section 94. "the period of investment")", there shall be inserted the words: "and in respect of an industrial building the construction of which was com• pleted before the 19th Tammuz, 5732 (1st July, 1972)".

20. In the Schedule to the principal Law, the words "industrial Amendment of buildings" shall be inserted after the word "Buildings". Schedule.

271 Transitional 21. Where a person acquired a debenture before the coming into provisions. force of ^ Law _

(1) section 47A(b)(2) of the principal Law, as amended, shall not derogate from the rights which he would have had but for the amendment of that section; (2) he shall from the coming into force of this Law be regarded -as entitled to the exemption granted by the amendment of the said section if he would have been so entitled had he acquired the debenture after the coming into force of this Law.

GOLDA MEIR ZEEV SHAREF Prime Minister Minister of Finance SHNEUR ZALMAN SHAZAR President of the State

(No. 82)

EMERGENCY REGULATIONS (COMPULSORY PAYMENTS) (AMENDMENT No. 2) LAW, 5729-1969*

Addition of 1. Regulation 21 of the Emergency Regulations (Compulsory Pay- ™ItoM™ ments), 5718-19581), shall be re-marked as regulation 25, and the follow• ing regulations shall be inserted before it:

"Charge for 21. (a) The Minister of Commerce and Industry, the advance• Minister of Finance and the Minister of Labour (herein• ment of research. after referred to as "the Ministers") may jointly prescribe by general order that the owner of an undertaking in the textile and clothing trade shall pay a charge for the advancement of research or the training of academic or skilled manpower for the purposes of the textile and cloth• ing industry (these objects hereinafter referred to as "the advancement of research"). (b) The charge shall be of a specific amount or of an amount equal to a specific percentage of the aggregate amount of wages payable to all the employees of the undertaking, including the managers, in a specific period of time or to a specific percentage of the value of the goods manufactured at the undertaking in a specific period of time or shall be otherwise calculated, as may be prescribed in the order.

• Passed by the Knesset on the 2nd Av, 5729 (17th July, 1969) and published in Sefer Ha-Chukkim No. 572 of the 10th Av, 5729 (25th July, 1969), p. 246; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 847 of 5729, p. 326. 1) Sefer Ha-Chukkim of 5724, p. 175 — LSI vol. XVIII, p. 173; Sefer Ha- Chukkim of 5727, p. 21 — LSI vol. XXI, p. 13; Sefer Ha-Chukkim of 5729, p. 138 — supra, p. 150.

272 Application of 22. A charge under section 21 shall be treated as a regula- charge under section 2, and the owner of an undertaking bon8• under section 21 shall be treated as a possessor of goods, and these Regulations shall apply to them mutatis mutandis and with the following additional modification : In regulation 7, paragraph (1), the words "the goods on which the charge has been imposed" shall be replaced by the words "the undertaking the owner of which has become liable to a charge under regulation 21".

Establishment of 23. The amounts of the charge collected under regula- tion 21 shall be transferred to a special fund to be ־־)un־• established for this purpose (hereinafter referred to as "the fund").

Directorate of 24. (a) The Ministers shall appoint a directorate for {und• the fund. (b) The members of the directorate shall be three representatives of the Government; four representatives of the manufacturers in the textile and clothing trade, ap­ pointed after consultation with the management of the Textile Section of the Manufacturers' Association; and one representative of the employees in the textile and clothing trade, appointed after consultation with the employees' organisation which, in the opinion of the Ministers, represents the greatest number of employees in the trade. The Ministers shall appoint one of the members of the directorate to be the chairman of the fund.

(c) The directorate shall, with the approval of the Ministers, from time to time prescribe the manner in which the moneys of the fund for the advancement of research shall be used.

(d) The directorate shall act in accordance with the directions of the Ministers.".

GOLDA MEIR Prime Minister SHNEUR ZALMAN SHAZAR President of the State (No. 83)

MATTERS OF DISSOLUTION OF MARRIAGE (JURISDICTION IN SPECIAL CASES) LAW, 5729-1969*

Power of 1. (a) Matters of dissolution of marriage which are not within the President of Supreme Court. exclusive jurisdiction of a religious court shall be within the jurisdiction of the District Court or a religious court, as the President of the Supreme Court may determine. (b) This Law shall not apply where both spouses are Jews; Muslims, Druze or members olF one of the Christian communities which maintain a religious court in Israel.

Preliminary 2. (a) Where one of the spouses is a Jew, a Muslim, a Druze, or a clarification. member of one of the Christian communities which maintain a religious court in Israel, the President of the Supreme Court shall not exercise his power under section 1 until he has received an opinion from a religious court as provided in this section. (b) The Attorney-General or his representative shall apply in writing to the religious court concerned or to each of the two religious courts concerned, describing the circumstances of the case and requesting a written opinion as to whether, in the circumstances described, the religious court would perform or grant a divorce, or annul the marriage or declare it void ab initio, and the religious court shall give the opinion as requested. (c) When the requested opinion has been given, the Attorney- General shall submit it to the President of the Supreme Court, who, after perusing the opinion, shall at his discretion decide whether to refer the matter to a religious court or to the District Court.

Restriction on 3. The President of the Supreme Court may refrain from determining determination jurisdiction under this Law if he is of the opinion that in the circum• of jurisdiction. stances of the case the applicant should not be granted relief.

Inapplicable 4. (a) Article 55 of the Palestine Order in Council, 1922-19471), provisions. shall not apply to a matter dealt with by this Law. (b) The provisos in article 64(1) and in the second sentence of article 65 of the said Order in Council shall not apply to a matter in respect of which jurisdiction is determined under this Law.

Choice of 5. (a) The District Court vested with jurisdiction under this law in Law shall apply one of the undermentioned to the matter, in the follow• District Court. ing order of preference:

* Passed by the Knesset on the 2nd Av, 5729 (17th July, 1969) and published in Sefer Ha-Chukkim No. 573 of the 12th Av, 5729 (27th July, 1969), p. 109; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 813 of 5729, p. 109. 1) Laws of Palestine vol. Ill, p. 2569 (English Edition).

274 (1) the domestic law of the common domicile of the spouses; (2) the domestic law of the last common domicile of the spouses; (3) the domestic law of the country of which both spouses are nationals; (4) the domestic law of the place where the marriage was contracted: Provided that the Court shall not deal with the matter in accordance with any such law as aforesaid if different rules would apply thereunder to the two spouses. (b) In the absence of any law applicable under subsection (a), the Court may apply the domestic law of the domicile of one of the spouses, as it may deem just in the circumstances of the case.

(c) Consent of the spouses shall always be a ground for divorce.

6. In this Law — Definitions. "dissolution of marriage" includes divorce, annulment of mar­ riage and declaration of a marriage as void ab initio; "religious court" means a rabbinical court, a Sharia court, a religious court of a Christian community and a Druze religious court, all within the respective meanings assigned to these terms by law; "domicile" has the meaning assigned to this term by section 80 of the Capacity and Guardianship Law, 5722-19621).

7. The Minister of Justice may make regulations as to the proceed­ Regulations. ings before the President of the Supreme Court and as to the request of the Attorney-General or his representative for an opinion of a religious court under this Law.

8. The provisions of this Law shall not derogate from section 9 of Saving of the Rabbinical Courts Jurisdicdon (Marriage and Divorce) Law, 5713- laws. .(5717-1957״ ,or from section 18 of the Courts Law ,(1953-

GOLDA MEIR GOLDA MEIR Prime Minister Prime Minister Acting Minister of Justice SHNEUR ZALMAN SHAZAR President of the State

1) Sefer Ha-Chukkim of 5722, p. 120; LSI vol. XVI, p. 106. 2) Sefer Ha-Chukkim of 5713, p. 165; LSI vol. VII, p. 139. 3) Sefer Ha-Chukkim of 5717, p. 148; LSI vol. XI, p. 157. (No. 84)

SUCCESSION (AMENDMENT) LAW, 5729-1969*

1 Amendment of !. Tn section 57(a) of the Succession Law, 5725-1965 ), paragraph (2)

section . s^ajj kg repiacecj ^ ^ f0iiowing paragraph : "(2) in the case of children of the'deceased, until the age of years, and in the case of an invalid child or mentally sick 18׳ child, for the duration of his invalidity or mental sickness; a child who is a retarded person, within the meaning of the Welfare (Treatment of Retarded Persons) Law, 5729-19692), shall also have a right to maintenance;".

GOLDA MEIR GOLDA MEIR Prime Minister Prime Minister Acting Minister of Justice SHNEUR ZALMAN SHAZAR President of the State

(No. 85)

ADOPTION OF CHILDREN (AMENDMENT) LAW, 5729-1969**

3 Amendment of !. j.n the Adoption of Children Law. 5720-1960 ), the following shall section 7. be a(jded ^ ^ en

GOLDA MEIR GOLDA MEIR Prime Minister Prime Minister Acting Minister of Justice SHNEUR ZALMAN SHAZAR President of the State

* Passed by the Knesset on the 2nd Av, 5729 (17th July, 1969) and published in Sefer Ha-Chukkim No. 573 of the 12th Av, 5729 (27th July, 1969), p. 249; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 850 of 5729, p. 340. 1) Sefer Ha-Chukkim of 5725, p. 63; LSI vol. XIX, p. 58. 2) Sefer Ha-Chukkim of 5729, p. 132 — supra, p. 144. ** Passed by the Knesset on the 2nd Av, 5729 (17th July, 1969) and published in Sefer Ha-Chukkim No. 573 of 12th Av, 5729 (27th July, 1969), p.250; die Bill and an Explanatory Note were published in Hatza'ot Chok No. 804 of 5729, p. 44. 3) Sefer Ha-Chukkim of 5720, p. 96; LSI vol. XIV, p. 93.

276 (No. 86)

TRANSFER OF OBLIGATIONS LAW. 5729-1969*

1. (a) The right of a creditor, including a conditional or future Transfer of right. right, is capable of being transferred without the consent of the debtor, unless its transferability is negated or restricted by law, by the nature of the right or by agreement between the debtor and the creditor. (b) The transfer may relate to the whole or part of the right and may be conditional or by way of a charge.

2. (a) The transfer of a right does not alter the right or the con• Protection of ditions thereof, and all the pleas that were available to the debtor debtor. against the transferor at the time he learnt of the transfer shall be available to him against the transferee. (b) If the debtor settles the claim with the transferor before the latter has notified him of the transfer or a written instrument of transfer from the transferor has been produced to him, the debtor is discharged unless he has acted otherwise than in good faith. (c) If the debtor settles the claim with the transferee after the transferor has notified him of the transfer or a written instrument of transfer from the transferor has been produced to him, the debtor is discharged even if the right has not passed to the transferee, unless he has acted otherwise than in good faith.

3. Where part of a right has been transferred, the debtor may deduct Partial transfer. the expenses incurred by him as a result of the division of the right.

4. If a creditor transfers a right to one person and subsequently Conflicting transfers it to another person, the right shall vest in the first transferee: transfers. Provided that if the debtor is notified of the second transfer before being notified to the first, the right shall vest in the second transferee.

5. Subject to the transfer agreement, the transfer of a right includes Concomitant rights. any guarantee or charge given as security for it and any other right con• comitant to the transferred right, as far as they are transferable; and the creditor shall, upon the demand of the transferee, do the acts necessary in order that the transfer of the said rights may be valid in all respects.

6. The liability of a debtor is capable of being transferred, wholly Transfer of liability. or in part, by an agreement between the debtor and the transferee to which the creditor has given his consent, unless its transferability is negated or restricted by law.

7. The transfer of a liability does not alter the liability or the condi• Protection of transferee. tions thereof, and all the pleas that were available to the debtor against the creditor at the time of the transfer shall be available to the transferee.

Passed by the Knesset on the 2nd Av, 5729 (17th July, 1969) and published in Sefer Ha-Chukkim No. 573 of the 12th Av, 5729 (27th July 1969), p. 250; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 657 of 5725, p. 246.

277 Guarantee, 8. If the liability is secured by a guarantee or charge given otherwise charges, etc. than by the debtor, the transfer of the liability voids the guarantee or charge unless the guarantor or the owner of the charged property has consented to the transfer.

Other transfers. 9. The provisions of this Law shall apply also to the transfer of a right or liability not arising out of an obligation.

Applicability. 10. The provisions of this Law shall apply where no other law contains special provisions applicable to the matter; they to not apply to transfers under negotiable documents.

Transitional 11. Where a right arises out of an obligation created before the provisions. Coming into force of this Law, the transfer of part thereof requires the consent of the debtor.

Repeal. 12. There are hereby repealed — (1) the Fourth Book of the Mejelle; (2) the Debt (Assignment) Ordinance1).

13. This Law shall come into force on the 23rd Tevet, 5730 (1st January, 1970). GOLDA MEIR GOLDA MEIR Prime Minister Prime Minister Acting Minister of Justice SHNEUR ZALMAN SHAZAR President of the State

(No. 87)

BANKRUPTCY AND COMPANIES' WINDING-UP (AMEND• MENT OF PROVISIONS) LAW, 5729-1969*

Amendment of 1. In the Bankruptcy Ordinance, 19362), the following section shall Bankruptcy be inserted after section 42 : Ordinance, 1936. "Voidance 42A. (a) Where a person has transferred existing or of unreg• future rights to another and is subsequently declared istered bankrupt, the transfer shall be of no effect against the general transfer trustee as regards claims which were not settled before the of rights. commencement of the bankruptcy, unless the transfer was registered at the time and in the manner prescribed by regulations.

1) Laws of Palestine vol. I, cap. 47, p. 611 (English Edition). * Passed by the Knesset on the 2nd Av, 5729 (17th July, 1969) and published in Sefer Ha-Chukkim No. 573 of the 12th Av, 5729 (27th July, 1969), p. 252; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 657 of 5725, p. 248. 2) P.C. of 1936, Suppl. I, No. 566, p. 21 (English Edition).

278 (b) The provision of subsection (a) shall not apply to a transfer of claims against debtors specified in the instrument of transfer and the due date of settlement of which coincides with or precedes the time of the transfer, or of existing or future rights under contracts specified in the instrument of transfer, or of rights the transfer of which is included in the transfer of a business in good faith and for consideration.".

2. In the Companies Ordinance1), the following section shall be Amendment of Companies inserted after section 220B : Ordinance. "Voidance of 220B1. Where a general transfer of rights is of no effect unregister• in the event of bankruptcy, it is of no effect in the event ed general transfer of of the winding-up of a company. For this purpose, the rights. commencement of the winding-up shall take the place of the commencement of the bankruptcy.".

3. This Law shall come into force upon the coming into force of the Commencement. Transfer of Obligations Law, 5729-1969.

GOLDA MEIR GOLDA MEIR Prime Minister Prime Minister Acting Minister of Justice SHNEUR ZALMAN SHAZAR President of the State

(No. 88)

EMERGENCY REGULATIONS (REGULATION OF LEGAL AND ADMINISTRATIVE MATTERS — FURTHER PROVISIONS) (EXTENSION OF VALIDITY) LAW, 5729-1969*

1. The validity of the Emergency Regulations (Regulation of Legal Extension and Administrative Matters — Further Provisions), 5729-19692), in the of validity, form set out in the Schedule, is hereby extended until a declaration is published under section 9(d) of the Law and Administration Ordinance, 5708-19482), that the state of emergency has ceased to exist.

1) Laws of Palestine vol. I, cap. 22, p. 161 (English Edition); P.G. 1939, Suppl. I, No. 902, p. 41 (English Edition). * Passed by the Knesset on the 2nd Av, 5729 (17th July, 1969) and published in Sefer Ha-Chukkim No. 574 of the 12th Av, 5729 (27th July, 1969), p. 254; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 832 of 5729, p. 220. 2) K.T. No. 2380 of 5729, p. 1362. 3) J.R. of 5708, Suppl. I, p. 1; LSI vol. I, p. 7.

279 SCHEDULE

Addition 1. In the Legal and Administrative Matters (Regulation) Law, 5728- of section 9A. 1 1968 ) (hereinafter referred to as "the Law"), the following section shall be inserted after section 9 :

"Registration 9A. (a) (1) Where a company which immediately of companies before the coming into force of an application and transfer of assets and of law order or immediately before the coming liabilities. into force of this Law, whichever is the later, had a registered office or a place of business in the area of application of the order and which was established under the law applying in the area at the time of its establishment did not act in accordance with section 9 or 10 by the 9th Iyar, 5729 (27th April, 1969), the Minister of Justice may, by order, direct that it shall be registered in Israel under the Com• panies Ordinance2) with effect from the day fixed by him in the order; and he may, by such order, issue further directions concerning the registration of the company, its organs at the time of registration and the continuance of its operation after registration, including directions concerning the manner of its regis• tration, the form of its incorporation as a company under the Companies Ordinance, the address of its registered office, times for matters in respect of which it is bound to act under the Companies Ordinance and its management if, at the time of registration, it has no directors or managers as required by the Companies Ordinance or by its instru• ments of incorporation.

(2) Where the Minister of Justice has direct• ed as aforesaid, the Registrar of Companies shall register the company in accordance with the order, and the Registrar of Companies and the company shall act in accordance with every direction contained therein. For the purposes of any law, and notwithstanding anything contained in the memorandum of association and articles of the company, the directions of the Minister shall be deemed to be valid resolutions of the company. (b) An order under subsection (a) shall be pub• lished in Reshumot.

1 ) Sefer Ha-Chukkim of 5728, p. 247 ; LSI vol. XXII, p. 282. 2) Laws of Palestine vol. I, cap. 22, p. 161 (English Edition).

280 (c) The Registrar of Companies may require a company to which subsection (a) applies and a person who served as a director or manager thereof immediately before the making of the order under subsection (a) or a person who has been designated as a director or manager thereof by virtue of that order to submit to him a certified copy of the memorandum of association and ardcles of the company and to deliver to him such particulars and additional documents concerning the company as it is by law required to enter in its books or to report or submit to the Registrar of Companies.

(d) The assets and liabilities of the company prior to its registration under subsection (a) shall be its assets and liabilities upon its registration unless the District Court of Jerusalem otherwise prescribes upon the applica• tion of an interested party, or of the Attorney-General, in order to protect a person who before or after the registra• tion was a holder of rights in the company or a creditor or employee thereof.

(e) The following provisions shall apply to a com• pany registered under subsection (a) which has not yet submitted to the Registrar of Companies a certified copy of its memorandum and articles, as required under subsection (c) : (1) Where at the time of registration the company carried on business of a particular kind in the area of application of the applica• tion of law order, such kind of business, and only it, shall be regarded as within the scope of its objects; (2) so long as the company has not submitted its articles to the Registrar of Companies, the regulations set out in the Third Schedule to the Companies Ordinance shall be regarded as its articles unless the Minister of Justice otherwise directs by order; (3) notwithstanding the provisions of para• graphs (1) and (2), the Minister of Justice may define the objects of a company as aforesaid by order, and such definition shall be in force so long as the company has not submitted a memorandum and articles as required under subsection (c).

(f) The Minister of Justice or a person em• powered by him in that behalf may give a written certificate of the objects of the company and of any other matter arising out of an order made under subsec• tion (a).". Addition of 2. The following section shall be inserted after section 15 of the Law: section 15A. "Licences — 15A. (a) Where immediately before the coming into further force of an application of law order a resident of the area provisions. of application of the order, under the law applying in that area, practised any vocation, handicraft or other pursuit which requires a licence under an Israeli enact• ment and such resident has not yet received such a licence, the Minister in charge of the implementation of that Israeli enactment may, by order, direct that such resident be deemed to be holding a licence from the day fixed by the Minister in the order.

(b) A person to whom an order under subsection (a) applies shall, in all respects, be regarded as having received a licence by virtue of the Israeli enactment re• lating to the vocation, handicraft, or other pursuit con• cerned. (c) An order under subsection (a) shall be published in Reshumot. (d) The Minister in charge of the implementation of the enactment in question or a person empowered in that behalf by such Minister may require a resident to whom subsection (a) applies to give such particulars as it is permissible to demand under that enactment concerning himself or his qualifications. (e) The provisions of this section shall be in addition to, and not in derogation of, the provisions of section 15.".

Amendment of 3. In section 16 of the Law —

section 1 . ^ words "served as a judge of a civil court, or was an advocate, in such area" in subsection (a) shall be replaced by the words "served or practised, in such area or in any part of Eretz Israel not designated in the order, as a judge of a civil court or an advocate"; (2) the following subsection shall be inserted after subsection (e): "(f) Where a person has become a member of the Chamber of Advocates under this section, his earlier period of service or practice as a judge or advocate, as referred to in subsection (a) or (d), shall, for the purposes of any enactment, be deemed to be a period in which he served or practised as a judge or advocate, as the case may be, in Israel. This subsec• tion shall not derogate from the power conferred by subsec• tion (c) or (d).".

Addition of 4. The following section shall be inserted after section 19 of the section 19A. Law .

282 "Validity 19A. The validity of a licence or permit granted, or a of permit, registration made, by virtue of this Law shall not be ' ' ״ , . ° licence and registration, disputed. .

5. The following section shall be inserted after section 20 of the Addition of Law: section 20A.

"Appli­ 20A. From the date of the coming into force of an cation of application of law order, section 2 of the State Property State Prop­ 1 erty Law. Law, 5711-1951 ), shall apply mutatis mutandis to property of the state by which the area of the application of law order was de facto occupied, or of one of the authorities of such state, and which is situated in such area.".

6. These Regulations shall be cited as the Emergency Reguladons Citation. (Regulation of Legal and Administrative Matters — Further Provisions), 5729-1969.

GOLDA MEIR GOLDA MEIR Prime Minister Prime Minister Acting Minister of Justice SHNEUR ZALMAN SHAZAR President of the State

(No. 89)

LAND LAW, 5729-1969*

CHAPTER ONE : INTERPRETATION 1. In this Law — Definitions. "immovable property" or "property" means land, everything built or planted on land and every other thing permanently fixed to land, except severable fixtures; "settled property" means immovable property registered after settlement under the Land (Settlement of Title) Ordinance (New Version), 5729-19692); "registration" or "entry" means registration or entry in the Land Registers maintained under this Law or the regulations made thereunder; "Registrar" means a registrar appointed under section 116 for the Office in the area of operation of which the property in question is situated;

1) Sefer Ha-Chukkim of 5711, p. 52; LSI vol. V, p. 45. * Passed by the Knesset on the 2nd Av, 5729 (17th July, 1969) and published in Sefer Ha-Chukkim No. 575 of the 12th Av, 5729 (27th July, 1969), p. 259; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 612 of 5724, p. 178. 2) Dinei Medinat Yisrael (Nusach Chadash) No. 13, p. 292.

283 "Inspector" means an inspector appointed under secdon 117 in whose area of jurisdiction the property in question is situated; "lease" includes a sublease.

Ownership. 2. Ownership of immovable property is the right to possess and use it, and to do anything and effect any transaction in respect thereof, subject to the'restrictions imposed by any law or by agreement.

Lease. 3. The lease of immovable property is the right, granted in considera• tion of a rent, to possess and use it otherwise than permanently. A lease for a period of more than five years shall be called "tenancy". A lease for a period of more than twenty-five years shall be called "long-term tenancy".

Mortgage. 4. A mortgage is a pledge of immovable property.

Easement. 5. An easement is a charge on immovable property conferring a right of enjoyment, but not the right of possession of the property.

CHAPTER Two : TRANSACTIONS AND REGISTRATION THEREOF

Transaction in 6. A transaction in immovable property is the grant of the ownership immovable thereof or of any other right therein at the grantor's volition, except property. transmission by way of inheritance under a will.

Completion of 7. (a) A transaction in immovable property requires registration. transaction. The transaction is completed by registration, and the time at which the Registrar approves the transaction for registration shall be regarded as the time of registration. (b) A transaction which has not been completed by registration shall be regarded as an undertaking to effect a transaction.

Form of 8. An undertaking to effect a transaction in immovable property undertaking. requires a written document.

Conflicting 9. Where a person has undertaken to effect a transaction in im• transactions. movable property, and before it is completed by registration he under• takes towards another person to effect a conflicting transaction, the right of the party to the first transaction shall prevail : Provided that if the party to the second transaction has acted in good faith and for considera• tion, and such transaction is registered while he is still in good faith, his right shall prevail.

Acquisition in 10. Where a person acquires a right in settled property for considera• good faith. tion and in bona fide reliance on the registration, his right shall be valid even if the registration was not correct.

284 OWNERSHIP AND POSSESSION .־ CHAPTER THREE

ARTICLE ONE : EXTENT OF OWNERSHIP

11. The ownership of an area of land extends to the whole of the Depth and depth below the surface of the land, subject to any law relating to water, height. petroleum, mines, minerals and the like, and to the airspace above the surface of the land; however, subject to any law, this provision shall not prevent passage through such airspace.

12. The ownership of any land extends also to what is built or planted Things fixed to thereon and to every other thing permanently fixed thereto, except land. severable fixtures, and it shall be immaterial whether the fixture was built, planted or otherwise fixed by the owner of the property or by any other person.

Scope of transac­ 13. Save as otherwise provided in this Law, a transaction in im­ tion in movable property extends to the land together with everything enumerat­ immovable ed in sections 11 and 12, and a transaction in respect of a specific property. part of the property is invalid.

14. Ownership and other rights in immovable property shall not by Restriction as to themselves justify the doing of anything that causes damage or inconven­ rights. ience to another.

ARTICLE Two : PROTECTION OF OWNERSHIP AND POSSESSION

15. In this article, "possessor" means a person who has direct control Possession. of the property and a person who has no direct control thereof, direct control being exercised by a person having possession under him.

16. The owner of any immovable property and a person entitled to Claim for possession thereof may demand the surrender of the property from a surrender of property. person who has possession thereof unlawfully.

17. The possessor of any immovable property may demand from any Claim for person who has no right to have possession thereof that he refrain from abstention from interference. any act calculated to interfere with the use of the property and that he remove anything calculated so to interfere.

18. (a) The lawful possessor of any immovable property may use a Use of force against reasonable amount of force to prevent trespass thereon or the unlawful trespassers. denial of his control thereof.

(b) Where a person occupies any property unlawfully, the lawful possessor thereof may use a reasonable amount of force to take it from the occupier, provided he does so within what, in the circumstances of the case, is a reasonable time.

19. A person who takes any immovable property from the possessor Return of unlawfully seized thereof otherwise than as specified in section 18(b) shall return it to the property. possessor. However, this provision shall not derogate from the power of

285 the Court to deal with the rights of both parties simultaneously, and the Court may regulate possession, as it may deem just and on such condi• tions as it may think fit, pending a decision as to such rights.

Saving of 20. The provisions of sections 16 to 19 shall not derogate from the remedies. right to compensation or from any other remedy or relief under law.

CHAPTER FOUR : BUILDING AND PLANTING ON ANOTHER'S PROPERTY

Owner's option. 21. (a) Where a person has erected any structure or planted any plantation (either operation hereinafter referred to as "installation of fixtures") on the property of another person without being entitled to do so by law or under an agreement with the owner of the property, such owner shall have an option either to retain the fixtures or to demand from the person who installed them that he remove them and restore the property to its former condition.

(b) If the owner of the property elects to retain the fixtures, he shall pay to the person who installed them an amount equal to the amount invested by him in installing them or to the amount of their value at the time of the exercise of the option under subsection (a), whichever is less. (c) Where the owner of the property demands the removal of the fixtures and the person who installed them does not remove them within a reasonable time, the owner of the property may remove them at the expense of that person. (d) Where the fixtures have been removed, what has been re• moved shall pass to the ownership of the person who installed it. If the owner of the property has removed the fixtures, he may recover out of them what is due to him in respect of the removal.

Constructive 22. If the owner of the property does not elect either of the alterna-

exercise of option. tjves menti0ned in section 21(a) within six months after receiving a written request to do so from the person who installed the fixtures, he shall be deemed to have elected to retain the fixtures.

Right of person 23. (a) Where fixtures have been installed on unsettled property, the who installed person who installed them may acquire the property at a price equal to fixtures to acquire the value thereof without the fixtures at the time of payment of the property. price if — (1) at the time of installing the fixtures he honestly believed that he was the owner of the property; and (2) the amount invested by him in the fixtures exceeded, at the time of their installation, the value of the property with• out the fixtures at that time; and (3) the acquisition by him of the property is not likely to cause the owner of the property such serious damage as cannot be made good by payment of the value of the property.

286 (b) The expenses involved in the acquisition of property under this section — including any tax, fee and other compulsory payment leviable in connection with the transfer of the property, but not includ• ing any payment due in respect of the period prior to the installation of the fixtures — shall, notwithstanding anything provided in any law, be borne by the person who installed the fixtures. (c) The rights under this section of the person who installed the fixtures shall prevail over the rights of the owner of the property under section 21.

24. The Court may, if it deems it just so to do under the circum- Payment for use. stances, require the person who installed the fixtures to pay the owner of the property suitable recompense in respect of the period for which he had unlawful possession of the fixtures.

25. The Court may permit the owner of the property to pay to the Terms of person who installed the fixtures the amount of his investment or the value payment, of the fixtures in such instalments and on such conditions, including interest and security for payment, as it may prescribe. The same applies, mutatis mutandis, to the amounts due to the owner of the property under section 23 or 24.

26. The mutual debts under this chapter of the owner of the property Set-off. and the person who installed the fixtures may be set off.

CHAPTER FIVE : JOINT OWNERSHIP OF IMMOVABLE PROPERTY

ARTICLE ONE : JOINT OWNERSHIP RELATIONS

27. Where any immovable property belongs to several owners, the Joint ownership ownership of each of them extends according to his share over the whole of immovable property. of the property, and no joint owner shall have a specific part thereof.

28. The shares of all the joint owners of any immovable property are Size of share presumed to be equal. of joint owner.

29. (a) An agreement between the joint owners as to the manage• Joint ownership ment and use of the joint property and as to their rights and duties agreement. concerning everything relating to the property (hereinafter referred to as a "joint ownership agreement") is capable of registration and upon being registered shall be effective also with regard to a person who there• after becomes a joint owner and every other person. (b) The provisions of sections 30 to 36 shall apply unless other• wise provided in the joint ownership agreement.

30. (a) The owners of a majority of the shares in any joint property Management and may determine all matters relating to the ordinary management and use use. of the property. (b) A joint owner who considers himself aggrieved by a deter• mination under subsection (a) may apply to the Court for directions, and

287 the Court shall decide as seems to it just and expedient in the circum• stances of the case. (c) Any matter outside the scope of ordinary management and use requires the consent of all the joint owners.

Right of individ• 31. (a) Unless otherwise determined under section 30, every joint ual joint owner. ownermay without the consent of the other joint owners — (1) make reasonable use of the joint property, provided that he does not prevent such use by another joint owner; (2) do any urgent and unforeseen act required for the proper maintenance and management of the property; (3) do anything reasonably required for preventing damage likely to occur to the property and protecting the ownership and possession thereof. (a) Where a joint owner has done as provided in subsection (a), he shall as soon as possible notify the other joint owners to such effect.

Expenses. 32. (a) Each joint owner shall contribute, according to his share in the property, to the expenses required for its proper maintenance and management. (b) A joint owner who has contributed to expenses as aforesaid in excess of his share may recover from the other joint owners in accordance with their shares in the property.

Payment for use. 33. A joint owner who has used the joint property shall pay to the other joint owners, according to their shares in the property, suitable recompense for the use thereof.

Right of joint 34. (a) Every joint owner may transfer his share in the joint prop• owner to deal erty, or effect any other transaction in respect thereof, without the with his share. consent of the other joint owners. (b) Any stipulation in a joint ownership agreement which denies or restricts any right as referred to in subsection (a) shall not be valid for a period exceeding five years.

Right to proceeds. 35. Every joint owner is entitled to a share in the proceeds of the joint property in accordance with his share in the property.

Set-off. 36. The mutual debts of the joint owners resulting from the joint ownership may be set off.

ARTICLE Two : SEVERANCE OF JOINT OWNERSHIP

Right to claim 37. (a) Every joint owner of immovable property is entitled at any severance of time to demand the severance of the joint ownership. joint ownership. (b) Where the joint ownership agreement contains a stipulation denying or restricting the right to demand the severance of the joint ownership for a period exceeding three years, the Court may, at the

288 expiration of three years, notwithstanding the stipulation, order the severance of the joint ownership if it deems it just so to do in the circumstances of the case.

38. (a) The severance of the joint ownership shall be by agreement Severance under agreement or between the joint owners. Where the agreement provides for the parti• court order. tion of the property, it shall require the approval of the Inspector, certifying that the partition is in conformity with the Planning and Building Law, 5725-19651), and with every other relevant enactment. (b) In the absence of agreement as provided in subsection (a), the severance of the joint ownership shall be by court order in accord• ance with sections 39 to 43.

39. (a) In the case of property capable of partition, the severance of Severance by way of partition. the joint ownership shall be by way of partition. (b) Where partition is possible only if equalisation payments are made between the joint owners, the Court may require the making of such payments if it deems it expedient and just so to do. The provisions of section 25 shall apply mutatis mutandis to such equalisation payments. (c) Where the Court deems it necessary so to do, it may order the registration of an easement between the parcels.

40. (a) In the case of property not capable of partition, and also if Severance by way of sale. the Court is satisfied that partition will cause considerable loss to all or some of the joint owners, the severance of the joint ownership shall be by way of sale of the property and division of the proceeds of the sale. (b) The property shall be sold in the manner in which attached immovable property is sold in execution proceedings, unless the Court directs it to be sold in some other manner deemed by it to be more ex• pedient and just in the circumstances of the case.

41. (a) Where some matter prevents the partition of the property Severance in special cases. in respect only of one of the joint owners, and that joint owner has prop• erty abutting on the joint property and consents to the incorporation of his share in the abutting property, the joint property shall be partitioned accordingly. (b) Where some matter prevents partition among all the joint owners, but nothing prevents partition if some of the joint owners take their shares jointly, and those joint owners have agreed to do so, the property shall be partitioned accordingly. (c) Where some matter prevents partition in respect only of some of the joint owners, the others may retain the property jointly or parti• tion it among them, provided that they pay those first-mentioned joint owners what would have fallen to their share had the property been sold as provided in section 40.

1 ) Sefer Ha-Chukkim of 5725, p. 307 ; LSI vol. XIX, p. 330.

289 Winding-up by 42. (a) Where the joint property consists mainly of a house eligible way of conversion for registration as a cooperative house, the Court may, after receiving into cooperative house. an opinion of an Inspector, order the severance of the joint ownership by way of registration of the house in the Register of Cooperative Houses and the allocation of dwellings to the joint owners according to their shares. .(b) Where the severance of joint ownership under subsection (a) is possible only if equalisation payments are made between the joint owners, the Court may require the making of such payments if it deems it expedient and just so to do in the circumstances of the case. The pro• visions of section 25 shall apply mutatis mutandis to such equalisation payments.

Wishes of joint 43. The Court shall, as far as possible, have regard to a request by owners. some of the joint owners to maintain the joint ownership between them and to other wishes of joint owners.

Management and 44. The Court may make a temporary order concerning rules for use pending the management and use of the property pending termination of the severance. severance proceedings.

Joint holding 45. The relevant provisions of the preceding article and of this of other rights. article shall also apply, mutatis mutandis, to other rights in immovable property which are vested in several persons.

ARTICLE THREE : BUILDING AND PLANTING ON IMMOVABLE PROPERTY

Severance of joint 46. Where a joint owner has installed fixtures on the joint property ownership by reason of un• without being entitled to do so under law or by agreement with the lawful instal• other joint owners, each of the other joint owners may, notwithstanding lation of fixtures. any restriction in the joint ownership agreement, demand the severance of the joint ownership in accordance with the provisions of Article Two. Where severance is not demanded, the provisions of Chapter Four shall apply mutatis mutandis.

Severance of joint 47. In severing the joint ownership by way of partition of the ownership by way of partition. property, the Court shall, as far as possible, determine the parcel of the joint owner who installed the fixtures in such a way that it includes the fixtures.

Severance of joint 48. Where the joint ownership is severed by way of sale of the joint ownership by way property, and the price obtained exceeds the price which would have of sale. been obtained from the sale of the property without the fixtures, the joint owner who installed the fixtures shall be entitled to be reimbursed for his investment therein, but not to an extent exceeding the difference between the two prices; where the price obtained is less than the price which would have been obtained from the sale of the property without the fixtures, the joint owner who installed the fixtures shall pay the difference to the other joint owners in accordance with their shares in the property.

290 ARTICLE FOUR : BOUNDARY FIXTURES

-49. (a) Walls, fences, trees and other similar fixtures situated on the Ownership and boundary of adjoining properties (such fixtures hereinafter referred to U8e• as "boundary fixtures") shall, pending proof to the contrary, be regarded as joindy owned by the owners of the adjoining properties. (b) Each of the owners may use the boundary fixtures for the purpose for which they were installed. They shall bear the expense of maintaining them in proper condition according to the ratio agreed between them, or, in the absence of agreement, in equal shares, unless the extent of the use is different.

50. Where trees or other plants grow near a boundary, any produce Produce which thereof which falls onto neighbouring property shall belong to the has fallen onto another's neighbour. If any produce thereof falls in a place to which the public property. has free access, any passer-by may take if for himself.

51. Where the branches or roots of trees or other plants growing Plants growing near a boundary spread into neighbouring property, the owner or possessor near boundary. of the neighbouring property (hereinafter referred to as "the neighbour") may not demand the removal of the branches or roots unless they are calculated to damage the property or to interfere to an unreasonable extent with his enjoyment thereof. If the neighbour demands that the owner of the plants remove such branches or roots and they are not removed within a reasonable time, he may remove them himself at the expense of the owner of the plants.

CHAPTER SIX : COOPERATIVE HOUSES

ARTICLE ONE : GENERAL PROVISIONS

52. In this chapter and in Article Four of Chapter Nine — Definitions, "house" means a permanent structure and includes the land on which it is built; "dwelling" means a room or compartment, or a set of rooms or compartments, intended to be used as a complete and separate unit for habitation, business or any other purpose ; "cooperative house" means a house containing two or more dwellings which is registered in the Register of Cooperative Houses; "owner of dwelling" in relation to a dwelling held on long- term tenancy, means the long-term tenant or long-term subtenant, as the case may be, unless the tenancy contract provides that he shall not be regarded as the owner of the dwelling for the purposes of this chapter; "common property" means all the parts of the coopeiative house other than the parts registered as dwellings, and includes the land, the roofs, the outer walls, the foundations, the staircases, the lifts and the shelters, as well as the heating, water and other similar

291 installations intended to serve all or most of the owners of the dwellings even if such installations are situated within a particular dwelling.

Applicability of 53. Every provision of this Law, and every other law applying to laws relating to immovable property, shall apply mutatis mutandis to dwellings in a immovable property. cooperative house ; and every reference to registration in the Land Registers shall, in that connection, be deemed to be a reference to registration in the Register of Cooperative Houses.

Separate 54. Notwithstanding the provisions of section 13, a dwelling in a ownership of cooperative house shall be a separate subject of ownership, rights and dwellings. transactions.

ARTICLE Two: DWELLINGS AND COMMON PROPERTY

Parts of common 55. (a) An unspecified part of the common property of a cooperative property which house ig^linked to each dwelling therein. are linked to dwellings. (b) A"1 transaction in respect of a dwelling shall extend also to such part of the common property as is linked to that dwelling, and a transaction in respect of the common property separately from the dwelling shall be invalid. This provision shall not prevent an act designed to diminish or enlarge the area of the land which forms part of the common property.

(c) The owners of the dwellings may stipulate in the rules, within the meaning of Article Three of this chapter (hereinafter referred to as "the rules"), that a specific part of the common property shall belong to a particular dwelling: Provided that they shall not so stipulate in respect of staircases, lifts, shelters or installations intended to serve all the owners. Where a specific part of the common property has been linked to a particular dwelling, the provisions of this Law relating to the common property shall not apply to that part, and that part shall for all purposes be treated like the dwelling to which it has been linked.

Inapplicability 56. (a) The provisions of Chapter Five shall not apply to die of Chapter Five. common property. (b) The provision of subsection (a) shall not prevent joint ownership of a dwelling or the severance of such joint ownership.

Size of share in 57. (a) The size of such share in the common property as is linked to common property. any dwelling shall correspond to the ratio between the floor space of that dwelling and the aggregate floor space of all the dwellings in the cooperative house unless the rules fix a different size. In calculating the size of a share as aforesaid, fractions smaller than a hundredth shall be disregarded.

(b) In calculating floor space for the purposes of subsection (a), the area of the balconies and of the outer walls shall not be taken into account, unless the rules otherwise provide.

292 (c) Where a specific part of the common property has been linked to a particular dwelling, the area of such part shall, for the purposes of subsection (a), be taken into account to the extent determined by the rules or, in the absence of such determination, to the extent determined by the Inspector according to the circumstances.

58. The owner of a dwelling shall participate in the expenses necessary Expenses. for the proper maintenance and management of the common property, and for ensuring the services prescribed by law or customary, according to his share in the common property, unless a different rate of partici• pation is prescribed by the rules.

59. (a) Where a cooperative house consists of several structures or Cooperative house wings each of which has a separate entrance or separate installations, consisting of several structures and the owners of the dwellings have stipulated in the rules that the or wings. common property, or part thereof, situated in each structure or wing shall only be linked to the dwellings situated therein, the duty of participating in the expenses of the maintenance and management of the common property linked as aforesaid shall be borne by die owners of the dwellings situated in the structure or wing in question. (b) Where common property has been linked as specified in subsection (a), the owners of the dwellings may stipulate in the rules that each structure or wing shall have a separate general meeting and a separate representation.

60. (a) If a cooperative house is destroyed, wholly or in part, from Destruction of whatever cause, and the owners to whose dwellings not less than three cooperative house. quarters of the common property is linked decide to rebuild or repair the house (such owners hereinafter referred to as "the rebuilders"), the owner of each dwelling shall participate in the expenditure involved in respect of his dwelling, and the owners of all the dwellings shall participate in the expenditure involved in respect of the common property, each according to the share of the common property linked to his dwelling. (b) If the owner of any dwelling refuses to participate in the rebuilding or repair of the common property, the Inspector may, on the application of the rebuilders and on being satisfied that it is not practicable to rebuild the cooperative house in respect only of the other dwellings, order the owner of that dwelling to transfer his right therein, within a period not less than six months prescribed by the Inspector, to a person designated by the owner of the dwelling and who shall take his place as to everything relating to the duty of rebuilding or repair. (c) If the owner of the dwelling fails to transfer his right as provided in subsection (b), the Inspector may, on the application of the rebuilders, order that the right shall be transferred to a person proposed by the rebuilders or, in the absence of a proposal from them, to a person designated by the Inspector and that it shall be registered in the name of that person after its value has been paid to the owner of the dwelling or deposited with the Inspector.

293 (d) In the event of disagreement as to the value of the right, such value shall be determined by the Inspector on the application of the rebuilders or of the owner of the dwelling. (e) Any application to the Inspector to exercise any of his powers under this section shall be treated as a claim before the Inspector under Article Four.

ARTICLE THREE : MANAGEMENT OF COOPERATIVE HOUSE

Rules. 61. A cooperative house shall be managed in accordance with rules regulating relations between the owners of the dwellings and their rights and duties with regard to the cooperative house.

Agreed rules. 62. (a) The owners of the dwellings may draw up rules and vary the provisions thereof by a majority of owners to whose dwellings two thirds of the common property is linked ; however, no rights of owners shall be determined or varied by the rules, and no duty or payments of a type or at a rate not specified in this Law shall be imposed on them, save with their consent, and the linking of a specific part of the common property to a particular dwelling shall not be prescribed save with the consent of all the owners.

(b) For the purposes of subsection (a), "owner" includes the lessor of a dwelling leased on long-term tenancy and the sublessor of a dwelling leased on long-term subtenancy. (c) The rules and any variation thereof are capable of registration, and upon being registered, are effective with regard to every person who subsequently becomes the owner of a dwelling.

Rules drawn up 63. Rules are capable of registration even while the cooperative house, by single person. wjtn aji jts dwellings, is owned by one person.

Model rules. 64. Where no rules have been registered under section 62 and where rules so registered make no provision for the matter in hand, the model rules set out in the Schedule shall be deemed to be rules registered by the owners of the dwellings.

Representation of 65. Every cooperative house shall have a representation for the cooperative house. management of the affairs of the cooperative house. The representation shall be constituted and act in accordance with the provisions of the rules.

First representa• 66. (a) Upon the registration of the house in the Register of Coope• tion. rative Houses, the Inspector who made the registration order shall appoint a provisional representation for that house pending the constitu• tion of the first representation under the rules. The composition of the provisional representation shall be in accordance with the recom• mendation of the owners of dwellings who applied for the registration ; in the absence of such a recommendation, the Inspector shall, at his

294 discretion, appoint a provisional representation from among the owners of the dwellings in the cooperative house or, if this is impracticable, otherwise than from among such owners, and may fix a remuneration for it, which shall be paid by such owners. (b) A representation appointed under subsection (a) shall for all purposes be treated as a representation constituted under the pro• visions of the rules.

67. (a) Where a representation has not been constituted in a co• Procedure in the operative house under the provisions of the rules, or where the re• absence of repre• presentation is not functioning, the Inspector may appoint a represen• sentation. tation for that house, and the provisions of section 66 shall apply mutatis mutandis to the appointment of the representation, to the fixing of its remuneration and to its status. (b) Where the rules of the cooperative house provide for the election of the representation by a general meeting, the Inspector shall not exercise his power under subsection (a) until he has convened the owners of the dwellings in a general meeting for the election of the representation, and the representation has not been elected at that meeting, or until he is satisfied that the convening of the meeting is unpractical in the circumstances of the case.

68. The remuneration fixed by the Inspector for a representation Remuneration of representation. appointed under section 66 or 67 shall be treated as an expense in which the owners of the dwellings must participate under section 58.

69. The representation shall act as an agent of all the owners in The representa• tion — an agent respect of every matter relating to the proper maintenance and manage• of the owners of ment of the cooperative house, and it shall be entitled to enter into the dwellings. contracts, and be a party to any legal or other proceeding, on behalf of all the owners in respect of any such matter as aforesaid.

70. (a) Where the rules of a cooperative house provide for the holding General meeting. of a general meeting of the owners of the dwellings, and the meeting does not convene in due time in accordance with the provisions of the rules, the Inspector may convene it and prescribe its agenda, and the provisions of the rules relating to a general meeting shall thereupon apply as if the meeting had been convened in accordance with such provisions.

(b) Where the rules permit attendance at a general meeting by proxy, the authorisation of a proxy shall be exempt from stamp duty.

71. A resolution of the owners of the dwellings passed in accordance Resolutions of with the rules and recorded in the register of resolutions shall bind every owners of owner of a dwelling, whether he was the owner of a dwelling at the time dwellings, the resolution was passed or became the owner of a dwelling thereafter. The register of resolutions shall be open for inspection by every owner of a dwelling at any reasonable time.

295 ARTICLE FOUR : SETTLEMENT OF DISPUTES BETWEEN OWNERS OF DWELLINGS

Power to decide 72. (a) A dispute between the owners of dwellings in a cooperative disputes. house as to their rights or duties under the rules or under section 58 shall be decided by the Inspector. (b) Where a dispute between the owners of dwellings in a cooperative house concerns trespass by the owner of a dwelling upon another dwelling or upon the common property, the plantiff may, at his option, bring it before a competent court or before the Inspector. (c) The provisions of subsection (a) and (b) shall also apply where the occupier of a dwelling on behalf of the owner thereof or, where a dwelling is held on long-term tenancy or long-term subtenancy, the long-term lessor or long-term sublessor, is a party to the dispute. (d) The provisions of this section shall not affect the validity of an agreement to refer disputes as aforesaid to an arbitrator.

Right to sue in 73. The following are entitled to submit a dispute for the decision of case of dispute. the Inspector: (1) every owner of a dwelling or other party to a dispute, as defined in section 72 ; (2) the representation of the cooperative house.

Powers of 74. An Inspector who hears a dispute shall have all the powers of a Inspector. Judge of a Magistrates' Court trying a civil action.

Hearing of 75. (a) An Inspector who hears a dispute may deviate from the rules dispute. of evidence if he is satisfied that it is expedient so to do in die interests of discovering the truth and doing justice. If he decides to deviate from the rules of evidence, he shall record the reasons which prompted his decision.

(b) Where an Inspector has begun to hear a dispute and is unable to complete the hearing thereof, another Inspector shall continue the hearing from the stage which his predecessor had reached, but he may permit all or part of the evidence to be produced again.

(c) The decision of the Inspector shall be in writing and reasoned, and shall be served upon each of the parties.

Enforcement of 76. The decision of the Inspector in a dispute and an interim order decisions and made by him shall, for the purposes of enforcement and execution orders. and for the purposes of section 6 of the Contempt of Court Ordinance1), be treated as a judgment or interim order of a Magistrates' Court.

Appeal. 77. (a) Any party who considers himself aggrieved by the decision ׳ of the Inspector may, within a period prescribed by regulations, appeal to the District Court in the area of jurisdiction of which the coopera­ tive house is situated.

1) Laws of Palestine vol. I, cap. 23, p. 356 (English Edition).

296 (b) The filing of appeal shall not stay the carrying out of the decision unless the Inspector or the court with which the appeal is filed so orders. (c) The District Court shall hear an appeal against a decision of the Inspector under section 72(b) by a bench of three judges. (d) The judgment of the Court in an appeal under subsection (a) is appealable by leave as provided in section 19(b) of the Courts Law, 5717-19571).

CHAPTER SEVEN ; RIGHTS IN IMMOVABLE PROPERTY O* ANOTHER PERSON

ARTICLE ONE : LEASE 78. Notwithstanding the provisions of section 13, a specific part of Lease of specific immovable property may be leased. part of property.

79. (a) Notwithstanding the provisions of sections 7 and 8, a lease for Provisions as to a period not exceeding five years does not require registration, and an short-term lease. undertaking to effect such a transaction does not require a written document. (b) The provisions of subsection (a) shall not apply to a lease carrying an option to extend its period to an aggregate period exceeding five years or to a lease the period of which falls, wholly or in part, after the expiration of five years from the completion of the lease contract. (c) The provisions of this section shall not prevent the registration of a lease not requiring registration, if the parties apply for it.

80. Where any property has been leased under a lease not requiring Adverse short- registration and which has not been registered, and before it is delivered term lease. to the lessee the lessor leases it to another person under a lease not requiring registration and which is adverse to the first lease, the right of the first lessee shall prevail: Provided that if the second lessee has taken the lease and received the property in good faith, his right shall prevail.

81. (a) Where a lease has been registered, the lessee may, subject as Lease charged agreed in the terms of the lease, mortgage it without the consent of the with mortgage or easement. lessor, and the provisions of Article Two shall apply mutatis mutandis. (b) Where a lease has been registered, the lessee may, subject as agreed in the terms of the lease, charge it with an easement without the consent of the lessor, and the provisions of Article Three shall apply mutatis mutandis.

82. Where the lease contract negatives or restricts the right of the Bar to lessee to transfer the lease or to sublease the property, and the lessor unreasonable refusal. refuses his consent to such a transaction on unreasonable grounds or

1) Sejtr Ha-Chukkim of 5717, p. 148; LSI vol. XI, p. 157.

297 attaches unreasonable conditions to his consent, the Court may permit the transaction on such conditions as it may think fit if it considers that no harm will thereby be caused to the lessor.

Gratuitous grant 83. The provisions of this chapter, except -section 8£, shall apply of possession and mutatis mutandis to a right assigned otherwise than for consideration use. to possess and use immovable property otherwise than permanently.

Law of hire and 84. (a) Subject to the provisions of this chapter, the general law of Tenants' Protec• hire shall apply to the lease of immovable property. tion Law. (b) The provisions of this Law shall not derogate from the provisions of the Laws dealing with the protection of tenants, including the Key-Money Law, 5718-19581).

ARTICLE Two : MORTGAGE

Mortgagor's right 85. (a) Subject as agreed in the terms thereof, a mortgage shall not in mortgaged affect the right of the owner to possess and use the property and to property. enter into any transaction in respect thereof.

(b) A transaction entered into by the owner of any property after it has been mortgaged shall not affect the right of the mortgagee to realise the mortgage, and such a transaction shall be of no effect with regard to a person who acquires the property upon execution of the mortgage.

Substitution of 86. Where any property has been charged with mortgages of different mortgage of rank and one of them is redeemed, the owner of the property may equal rank. replace the redeemed mortgage with a mortgage of the same rank if the terms of the mortgage next in rank provide for such a right.

Transfer of 87. (a) Subject as agreed in the terms of the mortgage, the mort• mortgage. gagee may transfer it, or part of it, to another person, together with the whole or part of the debt secured by it, without the consent of the owner of the property. (b) Where a mortgage has been transferred without the know• ledge of the debtor, he is discharged by payment of the debt to the former mortgagee.

Redemption of 88. The terms of a mortgage cannot derogate from the right to mortgage before redeem the mortgaged property before the time for the fulfilment time of fulfil-. ment of obligation. of the obligation in accordance with the provisions of section 13 (b) of the Pledges Law, 5727-19672). The provision of this section shall not affect terms stipulated before the coming into force of this Law.

Deposit of amount 89. If the owner of the property wishes to pay what is due from him due at Office. under a mortgage but the mortgagee does not accept it, the owner of the property may desposit the whole or part of what is due from him

1) Sefer Ha-Chukkim of 5718, p. 177; LSI vol. XII, p. 197. 2) Sefer Ha-Chukkim of 5727, p. 48; LSI vol. XXI, p. 44.

298 with the Registrar and request the Registrar to discharge the mortgage to the extent that it has been redeemed. The Minister of Justice may make regulations for the purpose of this section.

90. The realisation of a mortgage shall be effected under a court judg• Realisation of ment or under an order of the Chief Execution Officer and in the mortgage. manner specified in section 18 of the Pledges Law, 5727-1967.

91. Subject to the provisions of this chapter, the provisions of the Applicability of Pledges Law, 5727-1967, shall apply to a mortgage: Provided that Pledges Law. immovable property or a registered lease of immovable property shall not be pledged except by mortgage.

ARTICLE THREE : EASEMENT 92. An easement may be for the benefit of some property (hereinafter Holders of easement. referred to as the "dominant property") or for the benefit of a particular person or class of persons or for the benefit of the public.

93. (a) An easement may provide — Forms of easement. (1) that the owner of the dominant property or the person for whose benefit the easement has been granted shall be entitled to some specific use of the other property ("the servient property") ; (2) that the owner of the servient property shall refrain from carrying out a specific act in respect of that property. •&'$) An easement for the benefit of property may also provide that the owner of the servient property shall carry out a specific act in respect thereof or shall not be entitled to prevent the carrying out of a specific act in respect of the dominant property.

94. (a) A person who has exercised a right capable of being an Easement by easement for a period of thirty consecutive years has acquired the prescription. easement and is entitled to demand its registration. (b) Notice in writing by the owner of the property to the person exercising such a right as aforesaid, or to the public, that he opposes the exercise of the right interrupts the period referred to in subsection (a).

95. Where an easement is for the benefit of a person or a class of Transfer of persons, then, unless otherwise provided in the terms of the easement, easement. the holder or holders of the easement shall not transfer his or their right, save with the consent of the owner of the servient property.

96. An easement shall be for an unlimited period unless a period has Period and terms been fixed for it in the terms of the easement: Provided that the Court of easement• may, on the application of an interested party or of the Attorney- General, terminate the easement or vary its terms if it sees fit to do so by reason of the non-exercise of the easement or by reason of a change in the circumstances of the use thereof or in the condition of

299 משיד המשפטים מםמך זה הינו העתק שנסרק בשלמותו ביום ובשעה המצוינים . בסריקה ממוחשבת מהימנה מהמסמך המצוי בתיק, בהתאם לנוהל הבדיקות במשרד המשפטים. על החתום « 9ן משרד המשפטים (התימה מוסדית). 00>0. *01050 2014^ 22 ~~ ^'"" *