. Provisions to cater for the reform and strengthening of various health conditional grants (infrastructure grants and National Health Insurance). The new grant created is the Health Facility Revitalisation Grant through the merger of three previous grants which become the new grant components (Health Infrastructure Grant, Hospital Revitalisation Grant and Nursing Colleges and Schools Grant). Any shift between a grant component (limited to the same province) needs to be gazetted (as per new section 7(3) of the Bill). . Other new grants in the health sector are the National Health Grant and the 2014 African Nations Championship Health and Medical Services Grant. The National Health Grant (indirect grant) can be converted to a direct grant should a province have proven capacity (new section 20(1)(iv)). . Provinces will be required to submit funding proposals for their infrastructure grant allocations in the education and health sectors two years in advance. A set of bidding prerequisites and criteria will be used to evaluate each province's infrastructure bid proposals. (section 13 strengthened and section 26(4) added). . Submission of monthly provincial report on provincial expenditure of supplementary provincial infrastructure grants in format prescribed by National Treasury (section 9(1)(d)). . Human Settlements Development Grant and Public Transport Operations Grant to reallocate funds when human settlements and public transport functions are assigned to selected metros. The human settlements function may be assigned to specific metropolitan municipalities (subject to obtaining level 3 accreditation) beginning in 1 July 2013 (additional clauses to section 16). The public transport contracting and regulatory function may be assigned to specific metropolitan municipalities (additional clauses to section 16). . Municipalities receiving Urban Settlements Development Grant to report against measures defined in their Service Delivery and Budget Implementation Plan (section 11 strengthened). . Existing infrastructure grants may (subject to approval) be used by provinces and municipalities with the recovery and rehabilitation of infrastructure damaged by disasters (section 19(4) added). . Provision has been made to enable National Transferring Officers to still enforce conditions in previous Division of Revenue Act and conditional grant frameworks until the new Act is promulgated (section 27(1) is for 2013/14 and section 27(3) is for 2014/15 onwards). . Framework for providing exemptions on any condition in Act and/or conditional grant frameworks. Exemptions subject to: cannot be implemented in practice, impede achievement of any object of this Act, or undermines financial viability of affected national or provincial department or municipality (section 36). . Provisions made to improve linkages between sections. Suspending payment schedule when a transfer is withheld (section 17(2)). National Treasury to determine approach for payment schedules with respect to indirect grants (section 22(3)(d)). The Rural Households Infrastructure Grant (RHIG) which was previously a schedule 7 grant (allocation-in-kind) has been changed into a schedule 5(b) grant (direct grant).