NATIONAL TREASURY PROPOSED AMENDMENTS

TO DIVISION OF REVENUE BILL [B 3-2006]

CLAUSE 15

1. On page 9, in line 46, to omit "subsection (1)(b)" and to substitute "subsection (1)".

2. On page 9, in line 48, to omit "Despite subsection (2)".

3. On page 9, in line 50, to omit "subsection (1)(b)" and to substitute "subsection (1)".

CLAUSE 19

1. On page 11, in line 5, to omit "section 18(2)(a)" and to substitute "section 18(3)(a)".

CLAUSE 25

1. On page 13, in line 26, to omit "subsections (1)(a), (b) or (c)" and to substitute "subsection (1)(a)".

CLAUSE 38

1. On page 19, in line 31, to omit "a written agreement provided for in section 5 of that Act or another" and to substitute "an implementation protocol provided for in section 5 of that Act or any other".

2. On page 19, in line 45, to omit "The National Treasury may after" and to substitute "The National Treasury may, where a releasing province fails to comply with subsection (1)(a) or (c),after".

CLAUSE 39

1. On page 20, in line 1, to omit the heading "Delayed implementation of changes to municipal or provincial boundaries" "and to substitute "Implementation of changes to municipal or provincial boundaries or powers and functions".

2. On page 20, in line 3, to omit "boundary of a province or municipality" and to substitute "boundary or the powers and functions of a province or municipality".

CLAUSE 49

1. On page 22, in line 8, to omit "subsection (2)" and to substitute "subsections (2) and (3)".

2. On page 22, in line 12, to insert a new subsection (3):

"(3) (a) A municipality affected by a demarcation referred to in the Cross-boundary Municipalities Laws Repeal and Related Matters Act, 2005 must, despite that demarcation and the repeal of the Division of Revenue Act, 2005, spend allocations made under the last named Act in accordance with that municipality’s budget for the 2005/06 municipal financial year in the geographical area that constituted that municipality immediately prior to that demarcation, until the commencement of the 2006/07 municipal financial year of the newly constituted municipality that is the successor-in-title of that municipality in terms of the first mentioned Act.

(b) Despite subsection (a), all allocations payable to the Bohlabela District Municipality (CBDC4) in terms of the Division of Revenue Act, 2005, after 1 March 2006, must be transferred to the municipalities that are the successors-in-title of that municipality in terms of the Cross-boundary Municipalities Laws Repeal and Related Matters Act, 2005, in accordance with the same criteria and formulae that informed the allocations to the Bohlabela District Municipality.

(c) The National Treasury must publish the allocations made to each successor-in-title municipality in accordance with paragraph (a), in the Gazette. "

SCHEDULE 6

1. On page 43, in column 2, to omit "Local Government: Financial Management" and the substitute "Local Government Financial Management".

2. On page 43, in column 3, to omit "installlation" and to substitute "installation".