Division of Revenue Act, 2016 (Act No. 3 of 2016)Chapter 6 : General38. Transitional measures for municipal election in 2016 |
| (1) | In this section— |
| (a) | "post-election municipality" means a municipality existing with effect from the election date and is affected by a boundary determination in terms of the Local Government: Municipal Demarcation Act, 1998 (Act No. 27 of 1998), with effect from the election date; |
| (b) | "pre-election municipality" means a municipality which is in existence before the election date and is affected by a boundary determination in terms of the Local Government: Municipal Demarcation Act, 1998, with effect from the election date; |
| (c) | "the election announcement date" means the date of the notice in the Gazette which sets the date for an election of all municipal councils in 2016 in terms of section 24(2) of the Municipal Structures Act; and |
| (d) | "the election date" means the date set in the notice in the Gazette for an election of all municipal councils in 2016 in terms of section 24(2) of the Municipal Structures Act. |
(2)
| (a) | Despite section 5(1), read with Schedule 3, if the election date is after 1 July 2016, the National Treasury must, within 14 days after this Act takes effect or the election announcement date, whichever is later, determine by notice in the Gazette, the first transfer of the equitable share for each pre-election municipality. |
| (b) | The notice takes effect on the date of its publication in the Gazette. |
| (c) | If a transfer is determined for a pre-election municipality in terms of paragraph (a), the transfers to all post-election municipalities sharing any part of the municipal area of that pre-election municipality must be adjusted proportionally. |
| (3) | If the election date is after 1 July 2016, the National Treasury may, after consultation with the national department responsible for local government and by notice in the Gazette— |
| (a) | amend the date of 4 July 2016, referred to in section 5(3); |
| (b) | on or after the election date, in addition to the three transfers referred to in section 5(3), approve a fourth transfer on a date before 30 November 2016 for any post-election municipality. |
(4)
| (a) | If the election date is after 1 July 2016, the National Treasury may, by notice in the Gazette, determine for a pre-election municipality— |
| (i) | a conditional allocation referred to in Part B of Schedule 4; or |
| (ii) | a conditional allocation referred to in Part B of Schedule 5 published in terms of section 16(1)(a). |
| (b) | If a conditional allocation is determined for a pre-election municipality in terms of paragraph (a), the conditional allocation to all post-election municipalities sharing any part of the municipal area of that pre-election municipality must be adjusted proportionally. |
| (c) | Before making any amendments in terms of paragraph (a), the National Treasury must consult the relevant transferring officer. |
| (d) | An amendment in terms of paragraph (a) takes effect on the date of publication of the notice in the Gazette. |
(5)
| (a) | The transferring officer of a Schedule 4 or 5 allocation may, after consultation with the national department responsible for local government, request a coordinating structure established by the provincial department responsible for local government for a post-election municipality to prepare a draft business plan for the allocation, in accordance with the framework for that allocation. |
| (b) | All transfers for the 2016/17 financial year must be based on the draft business plan until the receiving officer approves a business plan in terms of paragraph (c). |
| (c) | The receiving officer of a Schedule 4 or 5 allocation must within two months after the election of all municipal councils submit to the transferring officer the business plan, as approved by the receiving officer. |
| (d) | All subsequent transfers must be based on the business plan approved by the relevant receiving officer. |
(6)
| (a) | A category C municipality (herein called "the releasing municipality") from which a particular area or a category B municipality is transferred from the election date to another category C municipality (herein called "the receiving municipality"), must continue to spend its allocations, in that particular area or category B municipality, as if that area or category B municipality was not transferred to the receiving municipality, unless the municipalities have entered into an agreement that ensures that the relocated area or category B municipality is not negatively affected. |
| (b) | The transferring officer of an allocation and the receiving municipality must monitor that the releasing municipality complies with paragraph (a). |
| (c) | The releasing municipality must, at the request of the transferring officer, the receiving municipality or the National Treasury, demonstrate compliance with paragraph (a). |
(7)
| (a) | Sections 18 and 19 apply, with the necessary changes, if a releasing municipality fails to comply with subsection (6)(a) or (c) in respect of a conditional allocation. |
| (b) | If an allocation is stopped in terms of paragraph (a), the National Treasury may, after consultation with the transferring officer, determine that a portion of the allocation be reallocated to the receiving municipality. |
| (8) | If a releasing municipality fails to comply with subsection (6)(a) or (c), the National Treasury may reallocate a portion of the releasing municipality’s equitable share allocation referred to in section 5(1) to the receiving municipality. |
| (9) | If the election date is after 1 July 2016, transitional measures in addition to the measures in this section may be prescribed. |