Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Section two thousand and eighty-one of the Administrative Code is hereby amended to read as follows:

"SEC. 2081. Employment of subordinates.-The Provincial Board shall fix the number of assistants, deputies, clerks, and other employees for the various branches of the provincial government and in accordance with the Salary Law to fix the rates of salary or wage they shall receive.

"After their number and compensation shall have been determined, the Provincial Governor shall, any provision of existing law to the contrary notwithstanding, appoint, upon recommendation of the chief provincial official concerned, all the subordinate officers and employees in the various branches of the provincial government whose salaries, compensation or wages are paid, wholly from provincial funds, in conformity with the provisions of the Civil Service Law, except those whose appointments are now or may hereafter be vested in the President or proper Department Head, teachers and other school employees and transient officials or employees who shall, as heretofore, be appointed by the proper chief of provincial office with the approval of the Department Head concerned: Provided, That appointments to all positions in the provincial service which under existing laws are in the unclassified civil service and of temporary employees in classified civil service positions made in the absence of eligibles, shall be submitted to the Provincial Board for approval: Provided, however, That in case the Provincial Governor and the chief provincial officer concerned cannot agree on the appointment of any official or employee the matter shall be submitted to the Department Head concerned for final decision; Provided, further, That the chief provincial officer concerned shall, subject to the Civil Service law and regulations, be responsible for the administrative discipline of all the subordinate officers and employees in his office; and Provided, furthermore, That the officers and employees of the provincial auditor shall continue to be appointed in accordance with the existing law and procedure: Provided, finally, That for the purposes of this Act, the engineering fund shall not be considered as provincial fund.

"Transient officials or employees shall be understood for the purposes of this Act to include those who, under the rules and regulations of the Department, bureaus and offices concerned, may, from time to time be transferred from one province, city, municipality, district, division or service, to another in the interest of the public service.

"Employees who are civil service eligibles at the time of the approval of this Act and thereafter shall continue in the service, unless removed for cause in accordance with Civil Service rules and regulations."

SEC. 2. The provisions of this Act shall likewise apply to all specially organized provinces.

SEC. 3. All acts or parts of acts inconsistent herewith are hereby repealed or modified accordingly.

SEC. 4. This Act shall take effect upon its approval.

Approved, June 16, 1950.