# Constitution of the Republic of South Africa Second Amendment Act, 2001

The Constitution of the Republic of South Africa Second Amendment Act, 2001 (Act No. 61 of 2001) is an Act of the Parliament of South Africa amending the Constitution of the Republic of South Africa, 1996. A presidential proclamation brought the act, except for sections 4 and 7, into force on 26 April 2002; sections 4 and 7 were brought into force on 1 December 2003 by a separate proclamation. It made various changes relating to government finance, including:
* Modifying the definition of a "money bill".
* Modifying the circumstances under which the Treasury may withhold funds from organs of state.
* Reducing the size of the Financial and Fiscal Commission.
* Modifying the powers of provinces to raise loans.
The act was renamed to the Constitution Seventh Amendment Act of 2001 by the Citation of Constitutional Laws Act, 2005.
Note that [words in bold type in square brackets] indicate omissions from existing enactments, while words underlined with a solid line indicate insertions in existing enactments.
(English text signed by the President.) (Assented to 7 December 2001.)
Act
To amend the Constitution of the Republic of South Africa, 1996, so as—
| — | to provide for the introduction, only by the Cabinet member responsible for national financial matters, of certain financial legislation in the National Assembly; |
| — | to extend the definition of a money Bill; |
| — | to regulate the withholding of funds by the national treasury if organs of state commit a serious and material breach of legislation prescribing treasury norms and standards; |
| — | to provide that the enactment of national framework legislation governing the policies of organs of state on preferential procurement should be obligatory; |
| — | to provide for the enactment of national framework legislation in connection with the withdrawal of money as direct charges against a Provincial Revenue Fund and certain payments from a Provincial Revenue Fund to municipalities; |
| — | to reduce the number of members of the Financial and Fiscal Commission and to change the appointment procedure; |
| — | to make provision for provincial borrowing powers; and |
| — | to provide for matters connected therewith. |
Be it enacted by the Parliament of the Republic of South Africa, as follows:—
Amendment of section 73 of Act 108 of 1996
1. Section 73 of the Constitution of the Republic of South Africa, 1996 (hereinafter referred to as the Constitution), is hereby amended—
(a)
“(2) Only a Cabinet member or a Deputy Minister, or a member or committee of the National Assembly, may introduce a Bill in the Assembly, but only the Cabinet member responsible for national financial matters may introduce the following Bills in the Assembly:
(a)
(b)
(b)
“(3) A Bill referred to in section 76 (3), except [a money Bill] a bill referred to in subsection (2) (a) or (b) of this section, may be introduced in the National Council of Provinces.”.
​Substitution of section 77 of Act 108 of 1996
2. The following section is hereby substituted for section 77 of the Constitution:
“Money Bills
77. (1) A Bill [that] is a money Bill if it—
(a)
(b)
(c)
(d)
(2) A money Bill may not deal with any other matter except—
(a)
(b)
(c)
(d)
[(2)](3) All money Bills must be considered in accordance with the procedure established by section 75. An Act of Parliament must provide for a procedure to amend money Bills before Parliament.”.
Substitution of section 120 of Act 108 of 1996
3. The following section is hereby substituted for section 120 of the Constitution:
“Money Bills
120. (1) A Bill [that] is a money Bill if it—
(a)
(b)
(c)
(d)
(2) A money Bill may not deal with any other matter except—
(a)
(b)
(c)
(d)
[(2)](3) A provincial Act must provide for a procedure by which the province's legislature may amend a money Bill.”.
Amendment of section 163 of Act 108 of 1996
4. Section 163 of the Constitution is hereby amended by the substitution for paragraph (b) of the following paragraph:
“(b)
(i)
(ii)
(iii)
Amendment of section 216 of Act 108 of 1996
5. Section 216 of the Constitution is hereby amended by—
(a)
“(2) [The national treasury, with the concurrence of the Cabinet member responsible for national financial matters, may stop the transfer of funds to an organ of state only for serious or persistent material breach of the measures established in terms of subsection (1)] The national treasury must enforce compliance with the measures established in terms of subsection (1), and may stop the transfer of funds to an organ of state if that organ of state commits a serious or persistent material breach of those measures.”; and
(b)
“(3) A decision to stop the transfer of funds due to a province in terms of section 214 (1) (b) may be taken only in [terms of] the circumstances mentioned in subsection (2) and—”.
Amendment of section 217 of Act 108 of 1996
6. Section 217 of the Constitution is hereby amended by the substitution for subsection (3) of the following subsection:
“(3) National legislation must prescribe a framework within which the policy referred to in subsection (2) [may] must be implemented.”.
Amendment of section 221 of Act 108 of 1996, as amended by section 2 of Act 2 of 1999
7. Section 221 of the Constitution is hereby amended—
(a)
“(1) The Commission consists of the following women and men appointed by the President, as head of the national executive:
(a)
(b)
(c)
(d)
(b)
“(1A) National legislation referred to in subsection (1) must provide for the participation of—
(a)
(b)
​Amendment of section 226 of Act 108 of 1996
8. Section 226 of the Constitution is hereby amended by the addition of the following subsection:
“(4) National legislation may determine a framework within which—
(a)
(b)
Amendment of section 228 of Act 108 of 1996
9. Section 228 of the Constitution is hereby amended by the substitution for paragraph (b) of subsection (1) of the following paragraph:
“(b)
Substitution of section 230 of Act 108 of 1996
10. The following section is hereby substituted for section 230 of the Constitution:
“Provincial loans
230. (1) A province [or a municipality] may raise loans for capital or current expenditure in accordance with [reasonable conditions determined by] national legislation, but loans for current expenditure[—
(a)]
(b)
(2) National legislation referred to in subsection (1) may be enacted only after any recommendations of the Financial and Fiscal Commission have been considered.”.
Short title
11. This Act is called the Constitution of the Republic of South Africa Second Amendment Act, 2001, and comes into operation on a date fixed by the President by proclamation in the Gazette.
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