| (1) | The Commission makes recommendations to organs of state on financial and fiscal matters in accordance with section 220 of the Constitution. |
[Section 3(1) substituted by section 2(a) of Act No. 4 of 2015]
| (a) | must perform the functions mentioned in subsection (1) to the extent that its performance of those functions are envisaged in the Constitution or required by national legislation; and |
| (b) | may perform those functions— |
| (i) | on its own initiative; or |
(2A)
| (a) | An organ of state in one sphere of government which seeks to assign a power or function to an organ of state in another sphere of government in terms of a law must first, before assigning the power or function— |
| (i) | notify the Commission of the fiscal and financial implications of such assignment on— |
| (aa) | the future division of revenue raised nationally between the spheres of government as required by section 214 of the Constitution; |
| (bb) | in the case of an assignment to a provincial or local organ of state, the fiscal power, fiscal capacity and efficiency of the relevant province or municipality; and |
| (cc) | any transfer of employees, assets and liabilities, if any; and |
| (ii) | request the recommendation of the Commission regarding such assignment. |
[Section 3(2A)(a)(ii) substituted by section 2(b) of Act No. 4 of 2015]
| (b) | The Commission must, not later than 180 days from the date of its receipt of the notification and request contemplated in paragraph (a) or such other period agreed with the relevant organ of state, make such recommendation on the intended assignment as may be appropriate. |
[Section 3(2A)(b) substituted by section 2(c) of Act No. 4 of 2015]
| (c) | An assignment contemplated in paragraph (a) has no legal force unless the organ of state making such assignment has requested and given consideration to the Commission’s recommendation contemplated in paragraph (b). |
[Section 3(2A)(c) substituted by section 2(c) of Act No. 4 of 2015]
| (d) | The organ of state assigning any power or function to another organ of state must in an accompanying memorandum explain to the Commission, the organ of state to which a power or function is being assigned, the National Treasury and any other functionary responsible for authorising such assignment, the extent to which it has considered and taken into account, the Commission’s recommendation contemplated in paragraph (b). |
[Section 3(2A)(d) substituted by section 2(c) of Act No. 4 of 2015]
| (e) | Despite paragraph (c), if the Commission does not make a recommendation within the period contemplated in paragraph (b), the relevant organ of state may, after consultation with the National Treasury, proceed to assign a power or function to another organ of state if such assignment takes into account the measures referred to in subsection (2A)(a)(i). |
[Section 3(2A)(e) substituted by section 2(c) of Act No. 4 of 2015]
[Section 3(2A) inserted by section 1 of Act No. 25 of 2003]
| (2B) | An organ of state must notify the Commission or request the Commission to perform a function in the form prescribed by the Commission. |
[Section 3(2B) inserted by section 1 of Act No. 25 of 2003]
| (2C) | If the Commission fails to comply with subsection (2A)(b), the Commission must submit written reasons for such failure to Parliament, and if appropriate, also to the relevant provincial legislature. |
[Section 3(2C) inserted by section 1 of Act No. 25 of 2003]
| (2D) | Before requesting the recommendation of the Commission, the organ of state seeking to assign the power or function must, in the case— |
[Words preceding section 3(2D)(a) substituted by section 2(d) of Act No. 4 of 2015]
| (a) | of a national organ of state, obtain the written approval of the National Treasury; or |
| (b) | of a provincial organ of state, obtain the written approval of the provincial treasury. |
| (3) | The Commission must be impartial. |
| (4) | No person or organ of state may interfere with the functioning of the Commission. |
| (5) | All organs of state must assist the Commission to perform its functions effectively. |
[Section 3(5) substituted by section 1 of Act No. 25 of 2003]
| (6) | The Commission must submit for tabling copies of all its recommendations made in terms of a provision of the Constitution to both Houses of Parliament and to the provincial legislatures. |
