LOCAL GOVERNMENT LAWS AMENDMENT BILL, 2007 1. I, Fholisani Sydney Mufamadi, Minister for Provincial and Local Government, hereby, in terms of section 154(2) of the Constitution, publish the Amendment Bill, 2007, for public comment.
Comments may also be faxed to (012) 334-4828 at the above address, or e-mailed to pieter@dplg.gov.za.
No comments which are received after 18 June 2007 will be considered.
To amend the Local Government: Municipal Demarcation Act, 1998, so as to include the definition of 'municipal financial year', so as to provide for determinations of municipal boundaries to take effect on the commencement of the following municipal financial year; to amend the Local Government: Municipal Structures Act, 1998, so as to include the definition of 'municipal financial year', so as to provide for authorisations and adjustments of powers and functions to take effect on the commencement of the following municipal financial year; to amend the Local Government: Municipal Systems Act, 2000, so as to define a deputy executive mayor as a political office bearer, to provide for the term of employment of a municipal manager not exceeding a maximum of five years, to align certain delegations to the Municipal Finance Management Act, to regulate the participation of municipal staff members in national, provincial and local elections; to amend the Minister's regulatory powers; to provide for a municipality to provide an owner with copies of accounts sent to the occupier of such property, to provide for a correction in the Afrikaans text of section 106, to refine the process to investigate maladministration and related matters; to provide for the exemption of municipalities from provisions of the Act, to amend the Code of Conduct for Councillors and Municipal Staff as to align with the Municipal Finance Management Act; to amend the Local Government: Municipal Property Rates Act so as to correct definitions, to allow quantification in terms of cost of relief measures to be dealt with through the municipal budget, to allow for municipalities not to value public service infrastructure if there is not intention to levy rates, to correct citations, to allow for the curbing of rates revenue, and to rationalise local government laws that became obsolete as a result of local government legislation that was enacted since 1994, and to provide for matters connected therewith.
Amendment of section1 of Act 27 of 1998 as amended by section 4 of Act 51 of 2002 1.
Amendment of section 23 of Act 27 of 1998 as amended by section 10 of Act 51 of 2002 2.
(4) (a) A determination referred to in subsection (2)(b), takes effect on the commencement date of the municipal financial year following the date of pUblication of the notice effecting such determination.
The Board must at least six months prior to the commencement of the municipal financial year in which boundary determinations are to take effect inform the Minister of Finance of such determinations.
Amendment of section 84 of Act 117 of 1998, as amended by section 6 of Act 33 of 2000 and section 19 of Act 51 of 2002 4.
(4) (a) Subject to paragraph (c), any authorisation, amendment of an authorisation or revocation of an authorisation under subsection (3) takes effect on the commencement date of the municipal financial year following the date of publication of the notice effecting such authorisation or amendment or revocation of authorisation.
Paragraph (a) does not apply if any authorisation, amendment of an authorisation or revocation of an authorisation under subsection (3) is to coincide with an election of the council of an affected municipality.
Amendment of section 85 of Act 117 of 1998, as amended by section 7 of Act 33 of 2000 5.
(9A) (a) Subject to paragraph (c), any adjustment of the division of powers and functions under this section, takes effect on the commencement date of the municipal financial year following the date of publication of the notice effecting such adjustment.
The MEC or Ministec as the case may be, must inform the national Minister responsible for finance of his or her intention to publish a notice contemplated in paragraph (a) at least six months before the notice is to take effect in terms of that paragraph.
Paragraph (a) does not apply if any adjustment of the division of powers and functions under this section is to coincide with an election of the council of an affected municipality.
Amendment of section 1 of Act 32 of 2000 as amended by section by section 35 of Act 51 of 2002 and section 1 of Act 44 of 2003 6.
Amendment of section 57 of Act 32 of 2000 as amended by Act 44 of 2003 7.
Amendment of section 60 of Act 32 of 2000 8.
The council may only delegate to [an executive committee or executive mayor or chief financial officer decisions to make] the municipal manager of the municipality the power to make decisions on investments on behalf of the municipality within [a] the municipality's investment policy [framework determined by the Minister of Finance] contemplated in section 13(2) of the Municipal Finance Management Act.
Amendment of Chapter 7 of Act 32 of 2000 9.
Participation of staff members in elections 71A. (1) A staff member who becomes a candidate for election to the National Assembly or any provincial legislature must resign not later than the date on which he or she is issued a certificate in terms of section 31(3) of the Electoral Act. 1998, stating that he or she is a candidate in the relevant election.
A staff member who is nominated as a permanent delegate to the National Council of Provinces. must resign not later than the date on which he or she is nominated by a political party as a permanent delegate to the National Council of Provinces as contemplated in section 61(2)(b) of the Constitution. 1996.
A staff member who becomes a candidate for election to a Municipal Council must resign not later than the date on which he or she is issued a certificate in terms of section 15(3) of the Local Government: Municipal Electoral Act. 2000, stating that he or she is a candidate in the relevant election.
Amendment of section 72 of Act 32 of 2000 10.
(1) The Minister may.
training and development of staff members of municipalities, including inhouse training, SUbject to the requirements of the Skills Development Act. 1998 (Act No. 81 of 1998), the Skills Development Levies Act. 1999 (Act No. 28 of 1999) and the Municipal Finance Management Act. 2003 (Act No.
Amendment of section 86H of Act 32 of 2000 as amended by section 18 of Act 44 of 2003 11.
"(3) A by-law made in terms of this section must be consistent with this Act and the Municipal Finance Management Act.".
Amendment of section 102 of Act 32 of 2000 12. Section 102 of the Systems Act.
"(3) A municipality must provide an owner of a property in its jurisdiction with copies of accounts sent to the occupier of the property for municipal services supplied to such a property if the owner reguests such accounts in writing from the municipality concerned.".
Amendment of section 106 of Act 32 of 2000 13.
"(a) deur middel van skriftelike kennisgewing aan die munisipaliteit, die munisipale raad of munisipale bestuurder versoek om die LUR te voorsien van inligting wat in die kennisgewing verlang word; [en] of ".
"(3) An MEC issuing a notice in terms of subsection (1)(a) or designating a person to conduct an investigation in terms of subsection (1)(b), must within 14 days submit a written statement to the National Council of Provinces motivating the action. A copy of the written statement must simultaneously be forwarded to the Minister and to the Minister of Finance."
(4) (a) The Minister may reguest the MEC to investigate maladministration, fraud, corruption or any other serious malpractice that. in his opinion. has occurred or is occurring in a municipality in the province.
The MEC must provide the Minister and the Minister of Finance with a report of the investigation detailing the outcome of the investigation.
Section 118 of the Systems Act, 2000 is hereby amended by the substitution for the words "120 days" of the words "60 days" in subsection (1A).
Amendment of section 123 of Act 32 of 2000 15.
"Exemption from provisions 123A To facilitate the institutional restructuring of the provision of municipal services, related processes and procedures, as authorised by the Cabinet member responsible for such restructuring, the Minister. acting with the concurrence of the Minister of Finance and after consultation with organised local government representing local government nationally, may. by notice in the gazette, exempt any municipality or municipal entity from a specific provision of Chapters 8 and 8A of this Act for a period of not more than four years and on conditions determined in the notice, provided that such exemption may not be understood as obliging any municipality or municipal entity to transfer any staff, assets or liabilities."
Amendment of item 6 of Schedule 1 to Act 32 of 2000 16.
the addition of the following subitem: "(4) No councillor may be a party to or beneficiary under a contract for the provision of goods and services to a municipality or a municipal entity established by the municipality."
Amendment of item 14 of Schedule 1 to Act 32 of 2000 17.
"(4) If a municipal council does not conduct an investigation contemplated in subitem (1) and the MEC for local government in his or her discretion consider it necessarv, [T]the MEC [for local government] may appoint a person or a committee to investigate any alleged breach of a provision of this Code and to make recommendations on whether the councillor should be suspended or removed from office".
Amendment of item 4 of Schedule 2 to Act 32 of 2000, as amended by section 29 of Act 44 of 2003 18.
the addition of the following subitem: "(3) No staff member of a municipality may be a party to or beneficiary under a contract for the provision of goods or services to a municipality or a municipal entity established by the municipality."
Insertion of item 5A in Schedule 2 to Act 32 of 2000 19.
Any change in the nature or detail of the financial interests of a staff member must be declared in writing to the chairperson of the municipal council annually.
The municipal council must determine which of the financial interests referred to in subitem (1) must be made public having regard to the need for confidentiality and the public interest for disclosure.
Amendment of section 1 of Act 6 of 2004 20.
by the addition of the expression "(Act No. 11 of 2004)" after the words "Communal Land Rights Act, 2004" in the definition of "land tenure right".
Amendment of section 3 of Act 6 2004 21.
by the substitution in paragraph (g) of subsection (3) for the expression "tax reductions" of the expression "tax exemptions".
Amendment of section 7 of Act 6 of 2004 22.
public service infrastructure [owned by a municipal entity]; Amendment of section 9 of Act 6 of 2004 23.
Amendment of section 15 of Act 6 of 2004 24.
expenditure on the expenditure side.
Amendment of section 17 of Act 6 of 2004 25.
"(e) on those parts of a special nature reserve, national park or nature reserve within the meaning of the [Protected Areas Act] National Environmental Management: Protected Areas Act. 2003 (Act No. 57 of 2003), or of a national botanical garden within the meaning of the National Environmental Management: Biodiversity Act, 2004 (Act No.
Amendment of section 19 of Act 6 of 2004 26.
by the substitution for the expression "11 (1)(b)" in paragraph (a) of subsection (1) of the expression "11 (2)".
(b) a rate on a category of non-residential properties that exceeds a prescribed ratio to the rate on residential properties determined in terms of section 11 (1)(a); provided that different ratios may be set in respect of different categories of non-residential properties.
Amendment of section 20 of Act 6 of 2004 27.
(1) The Minister may, with the concurrence of the Minister of Finance by notice in the GazetteL] : @l. set an upper limit on the percentage by which rates on [properties] property categories or a rate on a specific category of properties may be increased[.
set an upper limit on the percentage by which total revenue derived from rates on all property categories or a rate on a specific category of properties may be increased.
Amendment of section 46 of Act 6 of 2004 28.
(a) [The value of] any building or other immovable structure under the surface of the property which is the SUbject matter of any mining authorisation or mining right defined in the Minerals Act, 1991 (Act No.
by the repeal of subsection (5).
Amendment of section 78 of Act 6 of 2004 29.
by the addition of the following paragraph to suosection (1): "(g) of which the category has changed."
"(e) the date on which the change of category referred to in subsection 1(g) occurred."
Amendment of section 86 of Act 6 of 2004 30. Section 86 of the Property Rates Act, 2004 is hereby amended by the substitution for the expression "section 48" of the expression "section 54" in paragraph (c) of subsection (1).
The legislation specified in the first column of the Schedule is hereby repealed to the extent indicated in the second column of the Schedule.
This Act is called the Local Government Laws Amendment Act, 2007.
Jan Kempdorp Act, 1964 (Act No.
Jan Kempdorp Amendment Act, 1985 Act NO.
Amendment Act, 1985 (Act No.
Amendment Act, 1986 (Act No.
Constitutional Laws Amendment Act, 1988 Act No.
Amendment Act, 1988 (Act No.
Assembly), 1991 (Act No.
1993 (Act No.
Local Government Transition Act, 1993 Act No.
Amendment Act, 1996 (Act No.
The main object of the Bill is to amend the Local Government: Municipal Demarcation Act, the Local Government: Municipal Structures Act, the Local Government: Municipal Systems Act and the Local Government: Municipal Property Rates Act so as to facilitate the more effective implementation of these laws. This Bill deals with the most urgent amendments to achieve this object.
Clause 1 deals with including the definition of "municipal financial year" in the Demarcation Act.
Clause 2 provides for the taking effect of boundary determinations in terms of section 23 of the Demarcation Act on the commencement date of the municipal financial year following the date of publication of the notice effecting such determinations.
Clause 3 deals with including the definition of "municipal financial year" in the Structures Act.
Clause 4 provides for the taking effect of authorisations by the Minister in terms of Section 84 of the Structures Act on the commencement date of the municipal financial year following the date of publication of the notice effecting such authorisation.
Clause 5 provides for the taking effect of adjustments of the division of powers and functions between municipalities in accordance with section 85 of the Structures Act on the commencement date of the municipal financial year following the date of the notice effecting such adjustment.
Clause 6 deals with amendments to the definition of "political office bearer" so as to include the deputy executive mayor.
Clause 7 provides that the period of employment of the municipal manager may not exceed a period up to a maximum of five years.
Clause 8 amends section 60 of the Municipal Systems Act so as to align the provisions pertaining to certain delegations with the provisions of the Municipal Finance Management Act.
Clause 9 deals with the participation of municipal staff members in national, provincial and municipal elections.
Clause 10 deals with the realignment of the lVIinister's regulatory power in respect of local public administration.
Clause 11 deals with an omission of previous amending legislation.
Clause 12 follows a Constitutional Court judgement on this matter allowing the owner of a property insight into amounts owed on his or her property but occupied by someone else. The judgement also stated that the owner can be held liable for the non-payment of such amounts.
Clause 13 deals with a technical correction in the Afrikaans text of the Municipal Systems Act. It further provides for a period within which the MEC should submit a written statement to the NCOP and that such statement must also be forwarded to the Minister and the Minister of Finance. It also empowers the Minister to request the MEC to conduct a section 106 investigation and to provide the Minister and the Minister of Finance with a report detailing the outcome of the investigation.
Clause 14 deals with the shortening of the period required that all monies due to a municipality must be paid in order to facilitate transfer of properties.
Clause 15 provides for the Minister to exempt any municipality or municipal entity from a specific provision of the Act to facilitate the institutional restructuring of the provision of municipal services, related processes and procedures.
Clauses 16 and 18 deals with alignment to the Municipal Finance Management Act in regard to supply chain management by adding subitem 4 to Item 6 of Schedule 1 and sub-item 3 to Item 4 of Schedule 2 of the Systems Act.
Clause 17 is amended to provide that where the municipal council does not conduct an investigation in terms of subitem 1 and the MEC in his or her discretion consider it necessary the MEC may appoint a person of committee to do so.
Clause 19 amends Item 5 of Schedule 2 by the insertion of Item 5A to provide that municipal managers should within 60 days declare their interest in corporate entities.
Clause 20 deals with technical corrections to the definitions of the Municipal Property Rates Act.
Clause 21 proposes an amendment to section 3(3)(e) of the Property Rates Act allows for a rates policy not to reflect the quantification in terms of cost to the municipality with regard to the relief measures. The costing will be dealt with through the municipal budget.
Clause 22 proposes an amendment to section 7(2)(a)(ii) of the Property Rates Act, read together with section 30(2)(a) of the Act, and allows for municipalities not to be compelled to value public service infrastructure (psi) where there is no intention to levy rates on such public service infrastructure. A municipality will only be compelled to value those components of psi (whether owned by the municipality or not) which it intends rating.
Clause 23 amends Section 9 by the deletion of certain phrases from the existing section.
(mandatory exemptions); and the phasing-in discount for newly rateable property for a financial year must be reflected in the municipality's annual budget.
Clause 25 amends section 17 by providing for a correct citation of the Acts referred into in the section.
Clause 26 proposes an amendment to section 19(1)(a) of the Property Rates Act to cite the relevant section applicable to the content referred to in section 19(1)(a). The proposed amendment to section 19(1)(b) of the Act is to provides for the use of multiple ratios.
Clause 27 proposes an amendment to section 20(1) of the Property Rates Act allowing for the curbing of rates revenues.
Clause 28 proposes an amendment to section 46(3)(a) and (b) of the Property Rates Act by deleting the word "value" in order to ensure uniform application of this provision. Clause 22 further proposes the deletion of section 46(5) of the Property Rates Act because the existing section is redundant.
Clause 29 proposes an amendment to section 78(1)(g) of the Property Rates Act intending to allow the municipality to receive the appropriate rates revenue and for the ratepayer to be billed the appropriate rates payable when his/her property's rating category changes.
Clause 30 amends section 86 of the Municipal Property Rates Act, 2004 by deleting an incorrect reference to section and adding a correct reference.
Clause 31 deals with the repeal of outdated legislation affecting local government and which have become redundant as a result of the post 1994 dispensation.