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(No. 65)
JERUSALEM DEVELOPMENT AUTHORITY LAW, 5748-1988*
   
Definitions. 1. In this Law --
  • "the Authority" means the Jerusalem Development Authority established by this Law;
  • "the Council" means the Council of the Authority under section 8;
  • "the Board" means the Board of the Authority under section 10;
  • "the Ministers" means the chairman of the Ministers' Committee for Jerusalem, or the Minister designated by the government for the purposes of this Law, jointly with the Minister of Finance.

Purpose. 2. The Jerusalem Development Authority is hereby established.
The Authority
- a body
corporate.
3. The Authority is a body corporate.
The Authority
-an inspected body.
4. The Authority is an inspected body, within the meaning of the State Comptroller Law (Consolidated Version), 5718- 1958(1).
Functions of the
Authority.
5.
  • (a) The functions of the Authority shall be:
    • (1) to initiate activities for the economic development of Jerusalem;
    • (2) to prepare schemes for the development of Jerusalem;
    • (3) to encourage initiatives for the economic development of Jerusalem;
    • (4) to coordinate government ministries, authorities and bodies working for the development of Jerusalem;
    • (5) to supply information on anything connected with the planning and establishment of economic enterprises in Jerusalem;
    • (6) to advise and assist as to anything connected with the planning and establishment of economic enterprises in Jerusalem, including the proceedings required for this matter under any law.
    • (7) to promote the concentration of the managements of government ministries and units and national organizations in Jerusalem.
  • (b) In carrying out its functions, the Authority shall see to it that its activities do not conflict with decisions taken by the Jerusalem Municipal Council and that they conform with the economic policy of the government.
Powers of
the Authority.
6. The Authority shall have the power:
  • (1) to designate the bodies which are to carry out schemes for the economic development of Jerusalem prepared by the Authority;
  • (2) to prescribe the use of the resources at its disposal;
  • (3) to mobilize capital in and outside Israel for the purpose of carrying out its functions;
  • (4) to establish bodies corporate, by itself or with others, or to acquire rights in existing bodies corporate, for the purpose of carrying out its functions;
  • (5) subject to the provisions of any Law, to accept loans for the purpose of carrying out its functions and to issue bonds to that end; the loans and the terms shall require the approval of the Minister.

Use of income.

7. Any income received by the Authority shall, within the framework of its budget, be used for purposes set by the Authority with a view to carrying out its functions.
Council of
the Authority.
8.
  • (a) The Authority shall have a Council consisting of:
    • (1) representatives of the government, each appointed from among State employees by one of the following: the Prime Minister the chairman of the Ministers' Committee for Jerusalem or the Minister designated by the government for the purposes of this Law; the Minister of Finance; the Minister of Energy and Infrastructure; the Minister of Defense; the Minister of Construction and Housing; the Minister of Health; the Minister of Religious Affairs; the Minister of Education and Culture; the Minister of Agriculture; the Minister of Economics and Planning; the Minister of Justice, and Minister of Labor and Social Affairs; the Minister of the Interior; the Minister of Immigrant Absorption; the Minister of Transport, the Minister of Tourism; the Minister of Industry and Commerce; and the Minister of Communications.
    • (2) nine representatives of the Jerusalem Municipality, including six who, as far as possible, reflect the balance of power on the Municipal Council;
    • (3) five representatives of the public appointed by the Ministers and the Mayor of Jerusalem, in coordination with the Coordinating Committee of Economic Organizations in Jerusalem, from among bodies working for the economic development of Jerusalem;
    • (4) the representatives of institutions of higher education, including Torah institutions, appointed by the Minister of Science and Development, the Minister of Education and Culture and the Minister of Religious Affairs.
  • (b) The Chairman of the Council shall be appointed by the Council from among its members with the approval of the Minister.
Functions of
the Council.
9. The functions of the Council shall be:
  • (1) To advise the government as to anything relating to the implementation of section 4 of the Basic Law: Jerusalem, Capital of Israel(2), and to advise the Minister as to anything relating to the implementation of this Law;
  • (2) to approve the budget of the Authority;
  • (3) to supervise the carrying out of the functions of the Authority.
Board of
the Authority.
10. The affairs of the Authority shall be managed by a Board consisting of:
  • (1) the Council members who are the representatives of the Minister of Finance, the Minister of Construction and Housing, the Minister of Religious Affairs, the Minister of Agriculture, the Minister of Economics and Planning, the Minister of the Interior, the Minister of Tourism and the Minister of Industry and Commerce;
  • (2) four of the representatives of the Jerusalem Municipality on the Council, designated by the Municipality.
Disqualification
for office.
11.
  • (a) The following persons shall not hold office as members of the Council or Board:
    • (1) A person who is not an Israeli national;
    • (2) A person who within twelve years before his appointment was convicted by final judgement of, or served a penalty for, an office which in the opinion of the Attorney General involved moral turpitude;
    • (3) A person who, directly or indirectly, himself or through a relative, agent or partner, is connected with the Authority by any contract or transaction or who has an interest in a body corporate connected as aforesaid; but employees or members of the management of public bodies or of government companies shall not be disqualified by reason only that the bodies or companies are connected as aforesaid.
  • (b) For the purposes of subsection (a) and section 16 --
    • "person who has an interest" means a person who has a share exceeding five per cent of the capital of the body corporate or of the voting power therein or of the right to the profits thereof;
    • "relative" means a spouse, a parent, a son, a daughter, a brother, a sister or the spouse of a parent, a son, a daughter, a brother or a sister.
Period of
tenure.
12. The members of the Council and the members of the Board shall be appointed for three years and may be reappointed.
Termination
of tenure.
13. A member of the Council or Board shall cease to hold office before the expiration of his period of tenure if --
  • (1) he resigns by delivering a letter of resignation to the Minister, or
  • (2) having been appointed while a State or municipal employee, he leaves the service.
Removal
from office.
14. The Ministers and the Mayor of Jerusalem may remove a member of the Council or Board from office before the expiration of his period of tenure if:
  • (1) he is permanently unable to carry out his functions or
  • (2) he is convicted of an offense which in the opinion of the Attorney General involves moral turpitude, or
  • (3) he becomes disqualified under section 11(a)(3).
Procedure. 15. The Council and the Board shall determine the procedure of their work and deliberations insofar as it is not prescribed by or under this Law.
Duty to
disclose
privity to
transaction.
16.
  • (a) Where a member of the Council or Board , or a body corporate in which he has an interest, has or is likely to have, directly or indirectly, himself or through a relative, agent or partner, any share, privity or interest in or to any such transaction with the authority as is about to be considered by the Council or Board:
    • (1) he shall notify the Chairman of the Council or Board of such fact, as the case may be, immediately after becoming aware of the transaction;
    • (2) he shall not be present at the deliberations on that transaction or take part in any decision relating thereto or connected therewith.
  • (b) Subsection (a) shall not apply to any transaction or matter by reason only that the member of the Council or Board is an employee or a member of the management of a body corporate as referred to in that subsection.
Validity of
acts.
17. The existence and the powers, and the validity of the decisions, of the Council or Board, shall not be affected by a vacancy of the place, a defect in the appointment or the continuance of the tenure, of a member of the Council or Board.
Director of
Authority.
18.
  • (a) The Council shall, with the approval of the Minister and the Mayor of Jerusalem, appoint the Director of the Authority.
  • (b) The Director shall be responsible to the Council, the Board and the Ministers for the implementation of their decisions and for the carrying out of the functions of the Authority.
Tenure of
Director.
19.
  • (a) The period of tenure of the Director shall be five years. The Council may, with the approval of the Ministers and the Mayor of Jerusalem, extend the appointment for an additional period.
  • (b) The Director shall cease to hold office before the expiration of his period of tenure if:
    • (1) he resigns by delivering a letter of resignation to the chairman of the Council or
    • (2) the Ministers and the Mayor of Jerusalem, after consultation with the Council, determine that the Director is permanently unable to carry out his functions.
  • (c) The Ministers and the Mayor of Jerusalem shall, with the approval of the Council, prescribe the remuneration and the terms of employment with the Director.
Terms of
employment
of employees
of the
Authority.
20. The terms of employment and remuneration of the employees of the Authority shall be the same as those of State employees.
Reports. 21. At the beginning of every financial year, the Authority shall submit to the Minister, the Mayor of Jerusalem and the Finance Committee of the Knesset, a report in respect of the past year. The report shall contain:
  • (1) a balance sheet audited by an auditor;
  • (2) a revenue and expenditure report;
  • (3) reports concerning the resources of the Authority and the modes of using them;
  • (4) a review of the implementation of the budget of the Authority;
  • (5) a review of the activities of the Authority in that year.
Reporting
on demand.
22.The Ministers and the Mayor of Jerusalem may request of the Authority, at any time, a report and other information as to any matter within the scope of its functions and powers.
Implementation
and regulations.
23. The Ministers are charged with the implementation of this Law and may make regulations as to its implementation.
  YITZCHAK SHAMIR
Prime Minister
 
SHIMON PERES
Vice-Prime Minister and
Minister of Foreign Affairs
CHAIM HERZOG
President of the State
   
    MOSHE NISSIM
Minister of Finance

* Passed by the Knesset on 12 Av 5748 (26 July 1988) and published in Sefer Ha-Chukkim No. 1260 of 13 Av 5748 (27 July 1988), p. 168; the Bill and an Explanatory Note were published in Hatza'ot Chok No. 1889 of 5748, p. 221.

(1) Sefer Ha-Chukkim of 5718, p. 92; L.S.I. vol. XII, p. 167.

(2) Sefer Ha-Chukkim of 5740, p. 209; L.S.I. vol. 34, p. 209.


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SOURCE: "Laws of the State of Israel: Authorized Translation from the Hebrew, Volume 42". Government Printer, Jerusalem, Israel (1948-1989), p.195.

(C) Israel Law Resource Center, February, 2007.