Be it enacted by the Senate and House of Representatives of the Philippines in Legislature assembled and by the authority of the same:

SECTION 1. All buildings constructed and maintained in conformity with this Act to provide solid, commodious, and hygienic dwellings for laborers, the grounds used in connection with said buildings and the revenues or dividends derived from such buildings and grounds shall be exempt from all taxation while such buildings are used for laborers' dwellings.

SEC. 2. The benefits of the preceding section shall not apply, or shall be discontinued if the enjoyment thereof has begun, in any of the following cases:

1. If the building is not of reinforced concrete, constructed in accordance with a plan, specifications, and estimate of cost approved by the Director of Public Works and the Secretary of Labor, and capable of lodging, under the conditions mentioned in the preceding section, at least thirty laborers or independent families of laborers, with such rooms or space for common use as said Secretary shall declare to be necessary;
   
   
2. If the building lacks sufficiently spacious and sanitary grounds for the use of the occupants of the building;
   
   
3. If tenants have been received in the building who are not reputable laborers or subordinate employees, after notice to this effect has been given by the Secretary of Labor;
   
   
4. If rentals are charged at a rate higher than that approved by the Secretary of Labor, or if the terms offered are disapproved by said Secretary.
   

SEC. 3. The Secretary of Labor is hereby authorized to proceed to purchase land and construct buildings for laborers' dwellings as above set forth with the public funds placed from time to time at his disposal.

SEC. 4. It shall be the duty of the Secretary of Labor to see that this Act is carried into execution; to manage the land, buildings and improvements set aside for laborers' dwellings under this Act which are owned by the Insular Government; to supervise the management of real property used for said purpose and owned either by private persons or by the governments of provinces, municipalities or chartered cities; to promulgate from time to time rules to insure the punctual payment of rentals for such real property, and to adopt all other measures necessary to carry out the purposes of this Act.

SEC. 5. There is hereby appropriated, out of any funds in the Insular Treasury not otherwise appropriated, the sum of two hundred and fifty thousand pesos, or so much thereof as may be necessary, for the purposes specified in section three of this Act, and for any other incidental expenses required for the proper enforcement of this Act.

SEC. 6. The sum appropriated in the next preceding section shall only be available with the approval of the Governor-General, upon recommendation of the Secretary of Finance, until December thirty-first, nineteen hundred and thirty-five, unless said period shall be extended, for not longer than one year, by the Governor-General, upon recommendation of the Secretary of Labor, with the concurrence of the Secretary of Finance.

SEC. 7. This Act shall take effect on January first, nineteen hundred and thirty-five.

Approved, December 7, 1934.