Be it enacted by the National Assembly of the Philippines:

SECTION 1. Section twenty-six hundred and fourteen (d) of the Administrative Code is Amended so as to read as follows:

" SEC. 2614. (d) Classification.-- Municipalities are divided into five classes, according to their receipts, as follows: municipalities of the first class shall be those the annual receipts of which average d fifty thousand pesos or more during  the last three years, and shall have eight councilors; of the second class, those the annual receipts of which averaged thirty thousand pesos or more but less than fifty thousand pesos during the last three years, and shall have eight councilors; of the third class, those the annual receipts of which averaged fifteen thousand pesos or more, but less than thirty thousand pesos during the last three years, and shall have six councilors; of the fourth class, those annual receipts of which averaged five thousand pesos or more, but less than fifteen thousand pesos during the last three years, and shall have six councilors; of the fift class, those the annual receipts of which averaged less than five thousand pesos during the last three years, and shall have fie councilors.

"Beginning with the year nineteen hundred and thirty-nine and for each period of three consecutive years there-after, the Secretary of the Interior shall order the classification of the municipalities readjusted in accordance with the rules established in the last preceding paragraph: Provided, however,  That the councilors elected at the last regular election in each municipality shall continue to hold office during the term for which they were elected, and the reduction or increase of the numbered of councilors in accordance with the classification of municipalities herein prescribed shall take effect immediately after the ordinary municipal elections held after the classification is made"

SEC. 2. The provisions of section twenty-six hundred and sixteen of the Administrative Code is repealed.

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

Approved, June 9, 1938.