1. Introduction zPrivate Security Industry Regulation Act, No.56 of 2001, provides for the regulation of the private security industry. zPrivate Security Industry Regulatory Authority will act through a Council of 5 members independent of the industry. zCosts of regulating the industry are borne by registered private security industry members. zFunds of the Authority are derived from levies imposed by the Council upon industry members registered with the Authority.

2. Background zPrivate Security Industry Levies Bill provides the legal framework for the imposition of levies and matters incidental thereto. zLevies Bill is intrinsically linked to the Private Security Industry Regulation Act. zSection 77 of the Constitution of the Republic of South Africa, Act 108 of 1996, determines that a Bill that appropriates money or imposes taxes, levies or duties must be dealt with as a Money Bill.

3. Private Security Industry Levies Bill zIn general terms, the Bill makes provision for the imposition of levies by the Regulatory Authority, and also provides a framework for the use and management of levies, payment of levies, consequences of non-payment and for the assessment of the performance of the Authority to inform decisions in this regard.

4. Contents of the Bill zClause 1 –Definitions that must be read in the context of the Private Security Industry Regulation Act, 2001. –Additional definitions not catered for in the principal Act.

5. zClause 2 –Empowers the Council to impose levies on private security service providers and private security officers; vary the levies; determine interest payable; and determine differential levies payable by different categories or classes of security service providers. –Subject to certain procedural provisions. –Minister for Safety and Security is required in certain instances to act with the concurrence of the Minister of Finance.

6. zClause 3 –Authority must manage and use the levies according to the Private Security Industry Regulation Act. –Levies must be deposited into an approved bank account and proper accounting records must be kept. –Council must submit a budget of estimated revenue and expenditure for the next financial year and a business plan for the following three financial years to the Minister for Safety and Security for approval, with the concurrence of the Minister of Finance.

7. zClause 4 –Registered security service providers are obliged to: deduct and pay to the Authority the applicable monthly levies; and notify the Authority of certain details of employees. –Failure leads to the imposition of certain penalties, as specified in Clause 5.

8. zClause 5 –Consequences for security service providers and security officers who fail to comply with the obligations provided for in the Bill. –Provision for suspension of registration, lapsing of registration, withdrawal of registration, and liability for outstanding levies. –Interest is calculated upon unpaid levies. –A further 10% penalty is imposed on levies and interest accrued.

9. zClause 6 –Any levy imposed will lapse five years after the day it was introduced. –The Minister for Safety and Security is empowered to consider the re-imposition of a levy, with the concurrence of the Minister of Finance.

10. zClause 7 –The Minister for Safety and Security is empowered to commission an assessment of the performance of the Authority for consideration by the Minister for Safety and Security and the Minister of Finance. –The facility of a performance assessment is integral to the Levies Bill, as it will inform decisions in terms of the Bill (for example adjustments of the levy, re-imposition of the levy, etc.).

11. Conclusion zThe National Treasury believes the Private Security Industry Levies Bill is sufficient to ensure that: –the levy funding of the Regulatory Authority will be well-managed; and –the levy arrangements of the Regulatory Authority will operate in a transparent and accountable manner. zThe National Treasury wishes to thank the Minister for Safety and Security and his Departmental officials for their co-operation and assistance in the drafting of this Bill.