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. Section two of Act Numbered Thirty-one hundred and fourteen, as amended by Act Numbered Thirty-one hundred and sixty-eight and further amended by Act Numbered Thirty-six hundred and forty, is hereby amended to read as follows:

"SEC. 2. In order to provide funds for the operation and maintenance of hospitals constructed under the terms of this Act, the provinces concerned shall set aside annually for said operation and maintenance a sum of not less than three per cent of their general funds. Each municipality within the province shall likewise set aside annually a sum to be fixed by the provincial board, of not less than three nor more than five per cent of its general funds for said operation and maintenance: Provided, however, That the municipality in which the hospital is located shall set aside annually a sum of not less than seven per cent of its general funds for said purpose: Provided, further, That  the municipality of San Pablo, Province of Laguna, and the San municipality of San Miguel, Province of Bulacan, which have at present their own hospitals, shall be exempt from the contribution required by this section for provincial hospital, but the percentage of the general funds which would otherwise have to be set aside for said purpose shall be understood to be appropriated annually, in addition to the regular appropriation of the municipality for the operation and maintenance of the municipal hospital. The sums herein required to be set aside by the province and the municipalities therein shall be in addition to the sums which said province and municipalities are required to set aside for the health fund pursuant to existing laws."

SEC. 2. A new section is hereby inserted between sections two and three of Act Numbered Thirty-one hundred and fourteen as amended by Acts Numbered Thirty-one hundred and sixty-eight and Thirty-six hundred and forty which shall be known as section two and one-half and shall read as follows:

"SEC. 2 1/2. For the purposes of this Act, municipal hospitals supported in whole or in part by municipal funds shall be under the direct supervision and control of the Philippine Health Service and the officers and employees therein shall have insular status."

SEC. 3. This Act shall take effect on its approval.

Approved, December 3, 1932.