Finance Bill: Understanding The Path To Enactment

The process of a bill becoming a law differs across various governments. In the US, a bill is a proposal for a new law or a change to an existing law. The idea for a bill can come from a sitting member of the US Senate or House of Representatives, be proposed during their election campaign, or be petitioned by citizens. Once introduced, a bill is assigned to a committee, which researches, discusses, and makes changes to it. The bill is then put before the chamber to be voted on. If the bill passes one body of Congress, it goes through a similar process in the other body. Once both bodies vote to accept a bill, they work out any differences between the two versions and vote on the same version. If it passes, they present it to the president. The president can approve the bill and sign it into law, or refuse to approve it, which is called a veto. If the president chooses to veto a bill, Congress can vote to override that veto, and the bill becomes a law.

In Kenya, the Finance Bill is presented to the National Assembly as a legislative proposal every year by the National Treasury Cabinet Secretary. It is then prepared by the legal department in Parliament, published, and tabled in the name of the chairman of the House's Finance and National Planning Committee. The bill is then committed to the Finance Committee to undertake public hearings and submit a report to the House on its consideration. The MPs possess the power to consider the report in a manner they deem fit and can choose to shoot down the report on the Bill at the second reading stage. If the MPs choose to vote No on the report of the Bill, then the Bill stands lost and can only be introduced afresh after six months.

The Finance Bill is presented to the National Assembly by the National Treasury Cabinet Secretary

The process of a bill becoming a law varies depending on the country and the branch of government. In the context of the Finance Bill being presented to the National Assembly by the National Treasury Cabinet Secretary, I will assume you are referring to the process in Kenya.

In Kenya, the Finance Bill is a "Money Bill" and falls under the exclusive function of the National Assembly. This bill is typically presented to the National Assembly as a legislative proposal by the National Treasury Cabinet Secretary on the same day that the annual estimates for the national government are tabled. This process must occur by April 30th of every financial year, according to the Public Finance Management (PFM) Act.

Once the Finance Bill is presented, it undergoes several stages before becoming a law. Here is an overview of the process:

• Preparation and Publication: The bill is prepared by the legal department in Parliament and published before being formally tabled in the name of the chairman of the House's Finance and National Planning Committee.
• Committee Review: The bill is then committed to the Finance Committee, which undertakes public hearings to gather input from citizens. The committee may extend the public hearings period if necessary, with the authorization of the House Speaker.
• Report Submission: The Finance Committee submits a report to the National Assembly, incorporating the views gathered during the public hearings. This report may propose areas of amendments, suggest a clause-by-clause review, or recommend that the Assembly adopts the bill as published.
• Debate and Voting: The National Assembly debates the bill based on the report presented. Members of Parliament (MPs) have the power to consider and vote on the report as they deem fit. If a majority of MPs vote against the report, the bill is lost and cannot be reintroduced for at least six months, as per the Standing Orders.
• Presidential Assent: If the National Assembly passes the bill, it is submitted to the President for assent. The President has 14 days to assent to the bill, refer it back to Parliament for reconsideration, or take no action. If the President refers the bill back with reservations, Parliament can amend the bill accordingly or pass it a second time without amendment. If the President neither signs nor returns the bill, it automatically becomes law on the 14th day from the date it was transmitted for assent.

It is important to note that the Finance Bill has specific timelines it must adhere to. According to the PFM Act, the bill must be enacted by June 30th and come into force by July 1st, which marks the start of the financial year. This deadline ensures that the Kenya Revenue Authority (KRA) can begin collecting taxes to finance the country's budget.

The Bill is then prepared by the legal department in Parliament and published

Once the Finance Bill is presented, it is prepared by the legal department in Parliament and published before being tabled in the name of the chairman of the House’s Finance and National Planning Committee. This is a crucial step in the process of passing the Finance Bill into law.

The legal department in Parliament is responsible for drafting the Bill and ensuring it complies with all relevant laws and regulations. They work closely with the National Treasury Cabinet Secretary and other relevant stakeholders to ensure that the Bill is accurate and reflects the government's taxation plans.

During this stage, the Bill is also reviewed by legal experts to ensure it meets the required legal standards and follows the proper format. This includes checking that the Bill includes all the necessary information, such as the proposed taxes and their impact on the country's budget.

Once the legal department has completed its work, the Bill is published and made available to the public. This allows citizens, experts, and other interested parties to review the Bill and provide feedback. It is essential for maintaining transparency and ensuring that the Bill aligns with the needs and expectations of the people.

The publication of the Bill also marks the beginning of the next phase in the legislative process, where it will be further discussed, amended, and voted on. This process includes public hearings, debates, and a final vote by the National Assembly. The input from citizens and experts during the publication stage can help shape the direction of these discussions and influence the final outcome.

The Bill is tabled in the name of the chairman of the House's Finance and National Planning Committee

Once the Finance Bill is presented, it is prepared by the legal department in Parliament and published before being tabled in the name of the chairman of the House's Finance and National Planning Committee. The Bill is then committed to the Finance Committee to undertake public hearings and submit a report to the House on its consideration.

The number of memoranda submitted on the Bill will determine the duration of the committee's public hearings. However, the committee must seek the authority of the House Speaker before extending the hearings. The committee's report must incorporate the views of the people. The report may also propose areas of amendments, which is clause by clause or recommend that the House adopts the Bill as published.

The MPs have the power to consider the report in a manner they deem fit. If they feel the committee hasn't done as per expectations or has not included the views of the public, they may, in their numbers, choose to shoot down the report on the Bill at the second reading stage. Second reading refers to the debate stage on the Bill.

At the end of the second reading, a question is put for a Bill to proceed to the next stage, and a vote is taken. If the MPs choose to vote "No" on the report of the Bill, then the Bill, just like any other, stands lost and can only be introduced afresh after six months as per the Standing Orders. This is akin to a vote of no confidence in the government because it portends a serious constitutional crisis as taxes to finance the budget cannot be collected.

The Bill is committed to the Finance Committee to undertake public hearings and submit a report to the House

The process of a bill becoming a law involves several steps, and public hearings are a crucial aspect of this journey. In the context of a finance bill, the bill is committed to the Finance Committee, which plays a vital role in scrutinizing and shaping the legislation before it moves forward in the legislative process. This committee is responsible for undertaking public hearings, considering amendments, and submitting a report to the House.

The Finance Committee is typically comprised of a significant number of members, including both majority and minority party representatives. The committee's jurisdiction is defined by subject matter rather than specific agencies or departments, giving it broad oversight over financial matters. Once the bill is referred to the committee, the committee chair plays a pivotal role in setting the agenda and identifying the bills or issues that will be addressed through hearings.

Public hearings serve as a forum for gathering feedback and opinions on the proposed legislation from various stakeholders, including executive branch agencies, relevant industries, and citizen groups. Invited witnesses provide oral and written statements, sharing their perspectives on the strengths and weaknesses of the bill. Committee members then have the opportunity to ask questions of the witnesses, engaging in a dialogue to better understand the potential impact of the legislation. These hearings are generally open to the public and are publicized in advance to ensure transparency.

Following the public hearings, the committee enters the "mark-up" session, where members delve into the details of the bill and consider possible amendments. This session is a collaborative process, with members offering and voting on amendments to refine the legislation. The committee may also decide to incorporate extensive amendments into a "clean bill," starting anew with a revised version of the legislation.

Once the committee has completed its deliberations and voted on any amendments, it prepares a committee report. This report outlines the purpose, scope, and reasons for recommending approval of the bill. The report includes both majority and dissenting opinions, providing a comprehensive overview of the committee's stance on the legislation.

The committee's work is crucial in shaping the final version of the bill before it moves forward in the legislative process. By conducting public hearings, considering amendments, and submitting a detailed report, the committee ensures that the legislation has been thoroughly vetted and reflects the input of various stakeholders. This process is integral to the democratic principle of lawmaking and helps ensure that the resulting laws are well-informed, balanced, and responsive to the needs and concerns of those they will affect.

The Bill is debated on the basis of the report presented

The process of a bill becoming a law is a lengthy one, with many steps involved. Once the bill is presented, it is prepared by the legal department in Parliament and published before being tabled in the name of the chairman of the House's Finance and National Planning Committee. It is then committed to the Finance Committee to undertake public hearings and submit a report to the House on its consideration.

The Finance Committee will hold public hearings and consider the bill, making any changes they deem necessary. The committee may extend its public hearings period but with the authority of the House Speaker, before tabling its report, which must incorporate the views of the people.

The Bill is then debated on the basis of the report presented by the Finance Committee. The report may also propose areas of amendments, which is clause by clause or recommend that the House adopts the Bill as published. The MPs will then vote on whether to proceed with the Bill, and if they choose to vote "No", the Bill stands lost and can only be introduced again after six months.

If the MPs vote to proceed with the Bill, it will move to the next stage of the process, which involves further debate and voting. Ultimately, the Bill must be passed by the MPs and submitted to the President for assent before it can become a law.

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