| (1) | A Cabinet member or Deputy Minister seeking to initiate the assignment of a function or power by way of an Act of Parliament to municipalities in general, or any category of municipalities, must within a reasonable time before the draft Act providing for the assignment is introduced in Parliament— |
| (a) | request the Financial and Fiscal Commission to assess the financial and fiscal implications of the legislation, after informing the Financial and Fiscal Commission of the possible impact of such assignment on— |
| (i) | the future division of revenue between the spheres of government in terms of section 214 of the Constitution; |
| (ii) | the fiscal power, fiscal capacity and efficiency of municipalities or any category of municipalities; and |
| (iii) | the transfer, if any, of employees, assets and liabilities; and |
| (i) | the assessment by the Financial and Fiscal Commission contemplated in paragraph (a); |
| (ii) | the policy goals to be achieved by the assignment and the reasons for utilising assignment as the preferred option; |
| (iii) | the financial implications of the assignment projected over at least three years; |
| (iv) | any possible financial liabilities or risks after the three-year period referred to in subparagraph (iii); |
| (v) | the manner in which additional expenditure by municipalities as a result of the assignment will be funded; |
| (vi) | the implications of the assignment for the capacity of municipalities; |
| (vii) | the assistance and support that will be provided to municipalities in respect of the assignment; and |
| (viii) | any other matter that may be prescribed. |
| (2) | An MEC seeking to initiate the assignment of a function or power by way of a provincial Act to municipalities, or any category of municipalities, in the province must, within a reasonable time before the draft provincial Act providing for the assignment is introduced in the relevant provincial legislature— |
| (a) | request the Financial and Fiscal Commission to assess the financial and fiscal implications of the legislation, after informing the Financial and Fiscal Commission of the possible impact of such assignment on— |
| (i) | the future division of revenue between the spheres of government in terms of section 214 of the Constitution; |
| (ii) | the fiscal power, fiscal capacity and efficiency of municipalities or any category of municipalities; and |
| (iii) | the transfer, if any, of employees, assets and liabilities; and |
| (b) | consult the MEC for local government, the MEC responsible for finance, and organised local government representing local government in the province, with regard to— |
| (i) | the assessment by the Financial and Fiscal Commission contemplated in paragraph (a); |
| (ii) | the policy goals to be achieved by the assignment and the reasons for utilising assignment as the preferred option; |
| (iii) | the financial implications of the assignment projected over at least three years; |
| (iv) | any possible financial liabilities or risks after the three-year period referred to in subparagraph (iii); |
| (v) | the manner in which additional expenditure by municipalities as a result of the assignment will be funded; |
| (vi) | the implications of the assignment for the capacity of municipalities; |
| (vii) | the assistance and support that will be provided to municipalities in respect of the assignment; and |
| (viii) | any other matter that may be prescribed. |
| (3) | When draft legislation referred to in subsection (1) or (2) is introduced in Parliament or a provincial legislature, the legislation must be accompanied by— |
| (i) | giving at least a three-year projection of the financial and fiscal implications of the assignment of that function or power for those municipalities; |
| (ii) | disclosing any possible financial liabilities or risks after the three-year period; |
| (iii) | indicating how any additional expenditure by those municipalities will be funded; and |
| (iv) | indicating the implications of the assignment for the capacity of those municipalities; and |
| (b) | the assessment of the Financial and Fiscal Commission referred to in subsection (1)(a) or (2)(a), as the case may be. |
[Section 9 substituted by section 2 of Act No. 44 of 2003]
