THE LOCAL GOVERNMENT LAWS AMENDMENT BILL, 2002

1. THE LOCAL GOVERNMENT LAWS AMENDMENT BILL, 2002 Presented by the Department of Provincial and Local Government

2. Why? • Since the December 2000 municipal elections a number of problems emanating from deficiencies in various local government laws have arisen • Some of these issues are serious and hamper effective functioning of municipalities • Omnibus Bill includes amendments to a number of Statutes in order to address these issues

3. What does the Bill contain? The Bill has seven chapters: • Amendment of Organised Local Government Act, 1997 • Amendment of Remuneration of Public Office Bearers Act, 1998 • Amendment of Municipal Demarcation Act, 1998 • Amendment of Municipal Structures Act, 1998 • Amendment of Municipal Systems Act, 2000 • Amendment of Municipal Structures Amendment Act, 2000 • Miscellaneous Matters • Schedule

4. CRITICAL PROVISIONS

5. Amendment of Remuneration of Public Office Bearers Act • Amendment to authorise expenditure by Gauteng and Western Cape on councillor allowances, that were legally paid in 1998/99 were it not for being done ultra vires the Act (clause 2)

6. Amendment of Municipal Structures Act • Amendment to provide certainty re validity of Cape Valuation Ordinance. Valuations i.t.o. Ordinance are challenged and Parliament adopted resolution to adopt legislative measures (critical issue - clause 23)

7. Amendment of Municipal Structures Act • Provision for out of pocket expenses for traditional leaders (critical issue to encourage participation) (clause 20)

8. Amendment of Municipal Systems Act • Section 118: Amendment of provision relating to transfer of properties: alignment with Registrar of Deeds’ requirements • Exemption from rates clearance certificates for first time buyers of property financed by State (critical issue requested by Housing - clause 49) • Exemption also applicable to conversion of land tenure rights into ownership

9. Amendment of Municipal Structures Amendment Act, 2000 • Extension of transitional period until end June 2003 to ensure continuity for purposes of authorised powers and functions until end of municipal financial year (critical issue - clause 52)

10. OTHER IMPORTANT PROVISIONS

11. Amendment of Municipal Structures Act • Provision for acting mayors where no deputy mayors are provided for (clauses 17 and 18) • Amendment of provision pertaining to authorisation notices (sec 84) - clarify revocation and regulation by Minister (clause 21)

12. Amendment of Municipal Systems Act • Definitions (including municipal service) (clause 40) • Amendment to regulate process related to municipalities’ power to levy fees, charges and tariffs (clause 43) • Amendment to streamline review of service provision mechanisms (request from DWAF - clause 45)

13. OTHER PROVISIONS

14. Amendment of Municipal Demarcation Act • Technical amendments to definitions (clause 3) • Decrease in number of Board members (clause 4) • Amendment of Work programme (clause 7) • Streamlining of processes (clauses 5,6,8)

15. Amendment of Municipal Structures Act • Technical amendments, including corrections to Afrikaans text, consequential amendments and technical amendments to election provisions as requested by IEC • Provision for uncontested ward elections (clause 25)

16. Amendment of Municipal Systems Act • Legal representation of employees of municipality (clause 47) • Amendment to Code of Conduct for councillors - arrears (clause 50)

17. Schedule • Repeals provincial legislation pertaining to registration of properties and clearance certificates, in view of Systems Act provision (sec 118) - creating legal certainty.