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. Act Numbered Twenty-eight hundred and thirty-two, entitled "An Act creating a public corporation denominated the Metropolitan Water District, prescribing its functions and activities, and for other purposes," as amended, is hereby further amended in certain particulars so that hereafter the said Act shall read as follows:

"SECTION 1. Creation of the Metropolitan Water District; its general purposes; zone comprised by it; domicile and place of business of the corporation.—For the purpose of furnishing an adequate water supply and sewerage service to the inhabitants thereof, and for other purposes specified in this Act, there is hereby created a public corporation which shall be known as the Metropolitan Water District.

"The District shall comprise all territory within the boundaries of the City of Manila and the nearby municipalities of Montalban, San Mateo, Mariquina, Pasig, Pateros, San Pedro Macati, San Juan del Monte, Mandaluyong, Caloocan, Malabon, Navotas, Pasay, and Parañaque: Provided, That the District Board, in the interest of the public service, may from time to time extend the area of said District by the admission or inclusion of contiguous municipalities.

"The domicile and place of business of the District shall be in the City of Manila.

"SEC. 2. Powers and general functions of the District.—The powers, functions, and activities of the Metropolitan Water District of Manila shall be the following:

"(a) To have continuous succession under its corporate name until otherwise provided by law;

"(b) To prescribe its by-laws;

"(c) To adopt and use a seal and alter it at its pleasure;

"(d) To sue and be sued in any court;

"(e) To construct maintain and operate mains, pipes, water reservoirs, machinery and other waterworks for the purpose of supplying water to the inhabitants of the District, both for domestic and other purposes; to purify the source of supply, regulate the control and use, and prevent the waste of water; and to fix and provide for the collections of rents therefor;

"(f) To construct, maintain, and operate such systems of sanitary sewers as may be necessary for the proper sanitation of the District, and to charge and collect such sums for construction and rates for this service as may be determined by the Board to be equitable and just;

"(g) To construct all such storm-drains as may be needed in the City of Manila and requested by the City, and to maintain and operate all existing drains, the City of Manila to appropriate sufficient funds for this purpose;

"(h) To construct, maintain, and operate electric power and light system for the use of the Government, if deemed advantageous to the District, and utilize for this purpose all the water power of the Angat River; to fix such rents and collect such dues as may be deemed just and proper, and to sell the surplus power;

"(i) To acquire, purchase, hold, transfer, sell, lease, rent, mortgage, encumber, and otherwise dispose of real and personal property, including rights and franchises, within or without the Metropolitan District, as authorized by the purpose for which the district was created and reasonably and necessarily required for the transaction of the lawful business of the same, unless otherwise provided in this Act.

"(j) To construct works across, or otherwise, any stream, watercourse, canal, ditch, flume, street, avenue, highway or railway, as the location of said works may require, provided such works be constructed in such manner as to afford security for life and property, and provided, further, that the stream, watercourse, canal, ditch, flume, street, avenue, highway or railway so crossed or intersected be restored to their former state as near as may be, or in a manner not to have impaired unnecessarily their usefulness. Every person or entity whose right of way is crossed or intersected by said works shall not obstruct the forming of such crossings or intersections and shall grant the District the proper authority for the execution of such work. The District is hereby given the right of way to locate, construct, and maintain such works over and through any of the lands which are now or may be the property of the Government of the Philippine Islands or any of its branches and political subdivisions.

"(k) To exercise the right of eminent domain for the purposes for which the District was created, in the manner provided by law for condemnation proceedings by the insular, provincial, and municipal governments.

"(l) To enact such regulations as may be necessary for the sanitary protection of the watershed and the reservoirs and water mains, and for the proper operation of the sanitary sewers, subject to the approval of the Bureau of Health to enact regulations for the protection of the water and sewer service, and of the light service, as soon as established, and to fix penalties for violations of the regulations enacted under this subsection which shall not in any case exceed two hundred pesos fine or six months imprisonment, or both, in the discretion of the court.

"(m) When essential to the proper administration of its corporate affairs or necessary for the proper transaction of its business or to carry out the purposes for which it was organized, to contract indebtedness and issue bonds, subject to the approval of the Secretary of Finance. The bonded indebtedness of the District, of all classes, shall not at any time exceed twelve million pesos, in addition to the bonds mentioned in section eight, and the issue thereof shall be subject to the conditions set forth in section five of this Act; and

"(n) To carry out the business for which it was organized and exercise such powers and do such things as may be reasonably necessary to carry out the purpose for which it was organized.

"SEC. 3. District Board; its members; reports to the Governor-General and the Philippine Legislature.—Unless otherwise provided by law, all corporate powers of the Metropolitan Water District shall be exercised, its business managed, and its property kept and preserved, by a board to be known as the District Board and composed of the Secretary of Public Works and Communications who shall be the president of the board, the Mayor of the City of Manila, the Provincial Governor of Rizal, the Commissioner of Health, the City Engineer of Manila, the Director of Public Works, the City Treasurer of Manila, one taxpayer of the City of Manila and one taxpayer of the Province of Rizal, the last two members to be appointed by the Governor-General by and with the consent of the Senate.

"The District Board shall render reports to the Governor-General and the Philippine Legislature as provided in sections five hundred and seventy-four to five hundred and seventy-seven, inclusive, of Act Numbered Twenty-seven hundred and eleven.

"SEC. 4. First meeting of the District Board; 'quorum'; votes necessary, in general, for adopting resolutions; appeal; per diems of member; secretary of the board and his salary.—The President of the District Board shall, immediately after the appointment thereof, fix a time and place for the first meeting, at which the Board shall adopt rules of procedure and fix a time and place for holding regular meetings.

"Not less than five members of the Board shall constitute a quorum for the transaction of business, and four affirmative votes shall be necessary for the adoption of any resolution or motion, except as herein otherwise provided.

"The minority of the Board may appeal from the decision or resolution of the majority within two days after a vote to the Governor-General whose decision shall be final in each case.

"The members of the Board shall receive their necessary expenses while attending the meetings of the Board, which shall not exceed the sum of five pesos per day, and shall receive no other compensation as members of the District Board.

"The Board shall appoint its secretary and fix his salary.

"SEC. 5. Resolution to incur indebtedness and issue bonds; their conditions, privileges, and exemptions; sinking fund; guaranty.—Whenever the District Board may deem it necessary for the District to incur an indebtedness or issue bonds, it shall by resolution so declare and state the purpose for which the proposed debt is to be incurred and the conditions of the bonds. In order that such resolution be valid, it shall be passed by the affirmative vote of at least five members of the District Board and approved by the Secretary of Finance.

"The bonds shall not be sold at less than par; shall be redeemable at the pleasure of the District Board after ten years from date of issue, and payable thirty years after date of issue; shall bear interest at an annual rate as determined by the Secretary of Finance; payable quarterly, both principal and interest being payable in gold coin or its equivalent, in the discretion of the Secretary of Finance, in Manila, if the bonds are sold in the Philippine Islands, or in the United States Treasury if sold in the United States; shall be in registered form, and shall be transferable at the office of the Insular Treasurer in Manila or at the Registry Office of the Department of Treasury of the United States, Washington, District of Columbia. The issuance of said bonds is authorized in accordance with the Act of Congress approved February sixth, nineteen hundred and five and July first, nineteen hundred and two, and with this Act, and they are declared, by virtue of said Acts, to be exempt from the payment of all taxation by the Government of the United States, or by the Government of the Philippine Islands, or by any authority, branch, division or political subdivision thereof, which facts shall be stated upon the face of said bonds. Said bonds shall be receivable as security in any transaction with the Government in which such security is required.

"A sinking fund shall be created the total whereof at each annual due date of the bond issue shall be equal to the total of an annuity of nineteen thousand three hundred seventy-one pesos and thirty-three centavos for each one million pesos of bonds outstanding, with interest at the rate of three and one-half per centum per annum. The sinking funds shall be under the custody of the Insular Treasurer who shall invest the same subject to the approval of the District Board and the Secretary of Finance.

"The Government of the Philippine Islands hereby guarantees the payment by the Metropolitan Water District of both the principal and the interest of the bonds issued by said District by virtue of this Act, and shall pay such principal and interest in case the Metropolitan Water District fails to do so, and there are hereby appropriated, out of the general funds in the Insular Treasury not otherwise appropriated, the sums necessary to make the payments guaranteed by this Act: Provided, That the sums so paid by the Government of the Philippine Islands shall be refunded by the Metropolitan Water District, and if said District fails to refund the same within thirty days after such payment has been made by the Government of the Philippine Islands, the Collector of Internal Revenue, so far as the City of Manila is concerned, and the provincial treasurer of Rizal, with respect of the municipalities comprising the rest of the district, are hereby authorized and directed to retain out of the revenues of the City of Manila and of the municipalities included in the district, that may come into their possession as belonging to said city and municipalities, the sum necessary to refund the payments made by the Philippine Government, in any proportion which the Insular Auditor may approve and which will insure their collection.

"SEC. 6. Conduct of affairs and current business; officers and employees of the District.—The affairs and current business of the Metropolitan District shall be conducted under the direction of the District Board, by a manager, assistant manager, chief engineer, comptroller and treasurer and such additional officers and employees as the. Board may provide.

"The duties and powers as well as the compensations of said officers and employees shall be such as may be defined and prescribed or fixed by the District Board and not be inconsistent with the provisions of this Act,

"The manager, assistant manager, chief engineer and treasurer shall be appointed by the Governor-General, by and with the consent of the Senate, and may be removed for cause by the Governor-General; but all appointments to such positions made while the Senate is not in session shall be effective either until disapproval or until the next adjournment of the Senate.

"The comptroller shall be appointed by the Insular Auditor with the approval of the Governor-General, and may be removed for cause in a like manner.

"SEC. 7. Manager, assistant manager, chief engineer, treasurer and comptroller of the District; their functions; salaries.—The manager of the Metropolitan District shall receive an annual salary which shall be fixed by the District Board and shall not exceed twelve thousand pesos. He shall represent the District in all its business matters; shall submit to the District Board his annual report and such partial reports as he may be required or see fit to render from time to time, regarding the condition of the business, or of any part of the business, of the District, and shall perform such other executive duties as may be prescribed by law or be required of him by resolution of the Board. The assistant manager shall receive an annual salary, which shall also be fixed by the District Board and shall not exceed seven thousand five hundred pesos; and shall perform such duties as may be required of him by the Board or the manager. He shall be manager in case of the temporary absence or disability of the manager. The chief engineer shall receive an annual salary, which shall also be fixed by the District Board and shall not exceed seven thousand five hundred pesos. The treasurer shall receive an annual salary, which shall also be fixed by the District Board and shall not exceed seven thousand two hundred pesos.

"The comptroller shall be the representative of the Insular Auditor who is hereby designated ex officio auditor of the Metropolitan Water District. The comptroller shall act as chief fiscal officer of the District and shall be chief of its accounting and auditing department. He shall audit; examine and settle all accounts of the District according to law and regulations and shall perform such other duties as the Insular Auditor or the District Board may require of him from time to time. The comptroller shall receive a salary to be fixed by the Board which shall not exceed seven thousand five hundred pesos per annum. The employees of the comptroller's office shall be appointed by the comptroller with the approval of the Insular Auditor, who with the approval of the District Board, shall fix the number and salaries of the said employees. The operating expenses of the office of the comptroller and the salaries and traveling expenses of the employees thereof shall be payable by the District, and the District Board shall make the necessary appropriation therefor.

"SEC. 8. Assets and liabilities of the Manila water and sewer system; their transfer to the District; sinking fund and Government guaranty.—The District Board is hereby authorized and directed to receive and assume on behalf of the Metropolitan Water District all assets and liabilities pertaining to the sewerage and waterworks system of the City of Manila, together with the sewerage and waterworks bonds sinking funds, and of all the indebtedness in general of the present sewer and water system of the City of Manila, and in turn to pledge such assets as security for the payment of the sewerage and waterworks bonded debt thus acquired.

"The Government of the Philippine Islands guarantees the payment by the Metropolitan Water District of both principal and interest on said bonds, and the District Board shall create for the same a sinking fund, in the same manner and subject to the same conditions as provided in section five of this Act for the bonds issued by the District Board, and the sums or part of the sums, appropriated by virtue of said section five shall be used for the payment thereof.

"SEC. 9. Possession by the District of all sewer and water systems within its territory; charging and collection of uniform rates.—The Metropolitan Water District shall own and control all the sewer and water distributing systems of the City of Manila and of the Municipalities comprising the District and shall charge and collect a uniform rate for all services rendered, whether to any person, corporation, firm, governmental body, municipal entity, religious or charitable institution.

"SEC. 10. Letting of contract for public works of the District.—All public works of construction or repair of the district involving an estimated cost of three thousand pesos or more should be let by the manager with the approval of the District Board to the lowest and most advantageous bid of a responsible bidder. Notice to bidders shall be published in the Official Gazette as required by law. In case no satisfactory bid is received, the manager may proceed to advertise anew or with the approval of the Board, he may proceed to execute the work. Before award of contract is made the manager shall require the contractor to give an adequate bond to secure the proper accomplishment of the work to be done and/or to satisfy all of the obligations for materials used and labor employed upon the same.

"SEC. 11. Powers reserved to the Legislature.—This Act or any part thereof may be amended or repealed at any date by legislative authority, and the Metropolitan Water District may be reorganized or dissolved by legislative provision.

"SEC. 12. Repeal of inconsistent legislation.—All Acts or parts or Acts inconsistent with this Act are hereby repealed."

SEC. 2. This Act shall take effect upon its approval.

Approved, November 29, 1933.