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Review of Money Bills Amendment Act (Act No.9 of 2009) - Joint Meeting of Finance and Appropriations Committees

Presentation by the Constitutional and Legal Services Office on the suggested changes to the Money Bills Amendment Act, including timelines, sequencing, and norms for provincial legislatures. Discussion on the alignment of the Parliamentary Budget Office (PBO) with the Financial Management of Parliament and Provincial Legislatures Act (FMPPLA).

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Review of Money Bills Amendment Act (Act No.9 of 2009) - Joint Meeting of Finance and Appropriations Committees

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  1. Review of the Money Bills Amendment Procedure and Related Matters Act (Act No 9 of 2009) Joint Meeting: Finance and Appropriations Comittees Presentation by Constitutional and Legal Services Office 28 June 2017

  2. Introduction • Process to date • Suggested changes • Time lines • Sequencing • Budget Office (PBO) • Consequential matters • Norms and standards for provincial legislatures • Way forward Background

  3. Meetings - Discussion document • 8 February 2017 • 2 May 2017 – SCoF • 13 June 2017 • 28 June 2017 • Process to date Background

  4. Priority areas Background • Timelines • Realistic • Moderated • Sequencing • Referral • Reporting • Budget Office • Legal person • Separate entity

  5. Timelines • BRRR – S. 5(4) – after adoption of Appropriation Bill, prior to MTBPS report – unchanged • MTBPS – S 6(5), (7), (10) & (12) – report 30 days after tabling of MTBPS or as soon as reasonable thereafter– report submitted to Minister within 7 days or as soon as reasonable thereafter. • Fiscal Framework – S. 8(3) – 16 days to report or as soon as reasonable thereafter – s. 8(7) adoption of report changed to allow programming but prior to reporting on DoRB s. 9(3) – S. 8(6)(b) Minister has 2 days to respond – unchanged. • DoRB – S. 9(3)(A) – 35 days to pass or as soon as reasonable thereafter – S. 9(7)(b) – Minister has 3 days to respond – unchanged. • Appropriation Bill – S. 10(5) – conditional appropriation – unchanged – S. 10(7) - pass Bill within four months after FY begins – unchanged – S. 10(9) – Minister given 10 days to respond - unchanged. Background

  6. Timelines (cont.) • Proposal moderates timeframes as discussed during meeting of 2 May • Deals implicitly with consequences of non-compliance to strict timeframes • ‘Reasonable’ is subject to judicial scrutiny Background

  7. Sequencing

  8. Sequencing • DoRB – S. 9(1) – referred after adoption of Fiscal Framework – changed to require reporting on Fiscal Framework prior to reporting on DoRB – S 8(3) – reporting on the DoRB after Fiscal Framework is adopted – S. 9(3). • Appropriation Bill – S. 10(1) & (3) – referred after adoption of Fiscal Framework – changed to require reporting after DoRB passed – S. 10(3). • S. 9(4) and 10(4) - ensures consistency with Fiscal Framework

  9. National Adjustments budget • S. 12(6) – DoRAB referred to joint sitting changed – sequencing changed • S. 12(7) – 9 days within which to report on fiscal framenwork or as soon as reasonable thereafter – S. 12(9) – At least 2 days for ministerial response – unchanged • S. 12(11) – 9 days to report on the DoRAB – changed to allow programming - S. 12(13) – at least 4 days for ministerial response – unchanged – S. 12(19) 30 days to report or as soon as reasonably therefafter. • S. 12(15) – sequencing changed to allow referral of Adjustments App Bill prior to passing DoRAB – repoting only allowed after the DoRAB is passed. • S12(17) - At least 4 days for ministerial response – unchanged Adjustments budget

  10. Emergency situations • S. 13(4) – implies consistency with the fiscal framwork – non-budget money Bills – constrains Parliament – amendment • Proposed S. 13(6) allows amendments to money Bills notwithstanding prevailing fiscal framework – based on section 16 of the PFMA. • Time frame for ministerial response – 14 days – unchanged – S. 13(3). • Proposal removed – as discussed during 13 July meeting. Other money Bills

  11. Section 15 of the Act establishes the PBO and sets out the following: • Functions (section 15(2)); • Appointment and removal of director (sections 15(5) & ((8)); • Reporting to Parliament (section 15(11)); and • Management of PBO (sections 15(12)-(15)). • How can the PBO be aligned to the FMPPLA or include fiduciary duties for the Director as accounting officer for an entity? Functions and management of the PBO

  12. Aligned to the FMPPLA – proposal from sections 53 and 55 of the Financial Sector Regulation Bill • Clarity on whether the PBO is an entity that receives a transfer of funds – legal person • Responsibility of Director for the fiduciary duties, financial management and human resource management • Reporting through the Presiding Officers, and included in Parliament’s annual report. • Presiding Officers submit reports to Houses • Chairpersons of finance and appropriations committees and relevant House Chairpersons act as advisory board to consult about structure and conditions of service of PBO – option. • Advisory board to appoint person to act as Director when vacancy exist. • 2 May meeting resolved to include a provision enabling a member to request advice form the PBO through the Committee – S.15(3) PBO (cont.)

  13. The language used in the Act can be improved to be consistent with language used in parliamentary processes (e.g. definitions). • Certain areas of the Act requires further consideration (e.g. Whether section 3 is necessary? • Correction of section 11(4)(c), which incorrectly refers to subsection (7) instead of (6)). • Correction to section 12(6) to ensure constitutionality of legislative process. • Other corrections to the latest terminology used in performance reporting (section 5(1)) and typographical corrections (section 6(2)(d)). • Insertion of words to clarify meaning (e.g. definitions, sections 6 to 11). Consequential matters

  14. Section 16, read with the Schedule to the Act provides for norms and standards for provincial legislatures. • Section 120(3) of the Constitution provides that provincial legislatures must pass provincial legislation to set out a procedure to amend provincial money Bills. • Section 116 (1) of the Constitution provides that a provincial legislature may control and determine its internal arrangements, proceedings and procedures. • Section 16 of the Act must be consistent with the Constitution – changed to allow discretion. Norms and standards for provincial legislatures

  15. Policy decisions for Committee • Develop and consider a draft amendment Bill • Gazette • Public hearings on draft amendment Bill • Report with a draft amendment Bill after public hearings for purpose of introducing a committee Bill Way forward

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