The Ministerof Finance intends tabling the Financial and Fiscal Commission Amendment Bill, 2003 in Parliament during the second Parliamentary term. The Billis published in accordance withRule 241(l)(c)of the Rules of the National Assembly. Interested persons and institutions are invited to submit written representation on the Bill to the Secretary to Parliament by no later than2 May 2003.
r Words in bold type in square brackets indicate omissions from existing enactments.
Words underlined with a solidlineindicate insertions in existing enactments.
221 of the Constitution; and to alter certain procedures in respect of financial matters in order to bring the said Act into line with the Public Finance Management Act, 1999; and to provide for matters connected therewith.
Amendment of section 3 of Act 99 of 1997 1.
(2A) (a)An organ of state in one sphere of government which seeks to assign any power or function to an organ of state in another sphere of government must request the Commission's advice on the financial implications of the assignment in question on the prescribed form.
(b)An assignment contemplated in paragraph (a)has no legal force until the organ of state assigning the power or the function has indicated in writing to the Commission the extent to which it has given consideration to the Commission's advice.
"(5) All organs of state[when appropriate] must assist the Commission to perform its functions effectively.".
Substitution of section 5 of Act 99 of 1997 2.
Composition 20 5.
two persons [nominated by] selected, after consulting organised local government, [in accordance with]from a list compiled in accordance with the process set out insection 5 of the Organised Local Government Act, 1997 (Act No.
(a)Whenever there is a vacancy on the Commission in respect of the members contemplated in subsection (l)(b)the Minister must notify each Premier accordingly and each Premier may nominate one person for appointment to the Commission.
(b)The Minister must compile a list of the nominees and must circulate the list to each Premier.
The Premiers must endeavour to reach consensus on a short-list of nominees, comprising at least one name more than the number of vacancies that must be filled.
(d)If the Premiers reach consensus on a short-list, that short-list is the list contemplated in subsection (l)(b).
If the Premiers cannotreach consensus, the list of nominees circulated in terms of paragraph (b)must be regarded as being the list contemplated in subsection (l)(b).
Amendment of section 11 of Act 99 of 1997 3.
Amendment of section 24 of Act 99 of 1997 4.
"(d)within [three] twomonths after the end of each financial year, prepare annual financial statements in accordance with generally accepted accounting practice.".
Amendment of section 26 of Act 99 of 1997 5.
as required by the Public Finance Management Act, 1999 (Act No. 1 of 1999).
The law mentioned in the Scheduleis hereby amended to the extent indicated in the hd column of that Schedule.
Members of the Financial and Fiscal Commission contemplated in section 2 of the principal Act who held office immediately before the commencement of this Act continue to hold office until the expiry of their terms of office.
Any member of the Financial and Fiscal Commission contemplated in section 5 5(l)(b)or (c) of the principal Act andwhoheldoffice immediatelybeforethe commencement of this Act mustbe regarded as having been appointed in terms of section 5 of the principal Act as amended by this Act.
This Act is called the Financial and Fiscal Commission Amendment Act. 2003.
Whenever there is a vacancy on the Financial and Fiscal Commission in respect of members contemplated in section 5(l)ic) of the Financial and Fiscal Commission Act. 1997 (Act No. 99 of 1997), each provincial organisation may nominate one person in writing for appointment to the Financial and Fiscal Commis-sion.
(2)(a)If there is one va- cancy, the executive committee of the national organisation must compile a list consisting of no more than four and no less than two nominees.
(b)If there are two vacan- cies. the executive committee of the national organisation must compile a list consisting of no more than six andno less than four nominees.
The executive committee of the national organisation must submit the list to the Min ister of Finance.
I. The main purpose of the Bill is toamend the Financial and Fiscal Commission Act, 1997 (Act NO. 99 of 1997) ("the Act"), in order to bring the Act into line with the Constitution as amended by the Constitution of the Republic of South Africa Second Amendment Act, 2001 (Act No. 61 of2001). The last mentioned Act reduced the number of members of the Financial and Fiscal Commission from 22 members to nine members and changed the appointment procedure for such members.
The Bill also seeks to amend section 3 of the Act by proposing the insertion of a provision which would require any organ of state which intends assigning or delegating any power or function to an organ of State in another sphere of government to request the Financial and Fiscal Commission's advice on any financial implications of the said assignmentor delegation. In terms oftheproposed amendment, an assignment or delegation has no legal force until theorgan of state assigning or delegating has indicatedtothe Commission the extent to which it has given consideration to the Commission's advice. The reason for the proposalisthatany such assignment or delegation inevitablyhas a financial andfiscalimpact, whichmay.at times.result in unfunded mandates for provincial or local governments.
The proposed amendments to sections 3 and 5 of the Act are to bring the Act into line with the Public Finance Management Act, 1999 (Act No. 1 of 1999).
The Bill also proposes an amendment to section 5 of the Organised Local Government Act, 1997 (Act No. 52 of 1997), in order to provide for a process whereby organisedlocal government participates in the compilation of a list from which the President will make two appointments in terms of section 5 of the Act to the Financial andFiscal Commission. This amendment also stems from the amendment of the Constitution referred to in paragraph 1.
Lastly, the Bill seeks to effect certain consequential amendments and to provide transitional arrangements.
Department of Provincial and Local Government. .-* * TheFinancid-and Fiscal Commission.
The Provincial Treasuries.
South African Local Government Association.
The State Law Advisers and the National Treasury are of the opinion that this Bill must be dealt with in accordance with the procedure prescribed by section 76(1) of the Constitution since it provides for legislation envisaged in section 220(3) ofthe Constitution.