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How Bills Are Passed By State Legislature ?

The procedures of passing of bills by State Legislature is different is some aspects in comparison to Parliament. Every state does not have Legislative Council as such in states, where there is no Legislative Council, bills have to be passed by Legislative Assembly only. Further in passing of even Ordinary Bills, the legislative council does not have equal power as is the case with Rajya Sabha. After passing of the bill by State Legislature, when a bill is presented before the Governor, the Governor has an additional option to reserve the bill for assent of the President.

How ordinary bills are passed by State Legislature ?

Article 196 deals with passing of ordinary bills.

Ordinary bills can originate in Legislative Assembly or Legislative Council, if a State has such Legislative Council. A bill is deemed to have been passed by State Legislature if it is passed by both the houses with amendments or without amendments.  

Lapsing of Bills

A bill does not lapse by reason of prorogation of Legislative Assembly or Legislative Council.

A bill, which has been passed by Legislative Council, does not lapse on dissolution of Legislative Assembly.

A bill which is pending before Legislative Assembly or has been passed by Legislative Assembly and pending before Legislative Council, lapses on dissolution of Legislative Assembly.

Even in passing of ordinary bills, the Legislative Council does not have equal powers.  Article 197 provides that if a bill has been passed by Legislative Assembly and transmitted to Legislative Council and Legislative Council  has rejected the bill; or three months have elapsed without any action by Legislative Council  since laying of bill before the Legislative Council; or the bill is passed by Legislative Council to which the Legislative Assembly does not agree; the Legislative Assembly may again pass the Bill in the same session or subsequent session with or without amendments.

After passing of bill, the bill is transmitted again to the Legislative Council. In case the bill is rejected by the Legislative Council  or more than one month has elapsed without any action since laying of bill  or bill is passed by the Legislative Council with amendments to which Legislative Assembly does not agree, such bill is deemed to be passed by both houses of the State Legislature in the form it has been passed by the Legislative Assembly.

What is procedure of passing of money bills by State Legislature ?

Article 198 provides for procedure for passing of Money Bills.

A money bill cannot be introduced in Legislative Council.

If a Money Bill is passed by the Legislative Assembly and transmitted to Legislative Council and the Legislative Council within fourteen days from its receipt returns the bill to the Legislative Assembly with its recommendations, Legislative Assembly may accept or reject all or any of the recommendations and the money bill be deemed to be passed in the form it was passed by the Legislative Assembly.

If the Legislative Council does not return the Money Bill within fourteen days of its receipt, the Money Bill  is deemed to be passed by the both the houses in the form passed by the Legislative Assembly.

What is definition of Money Bill ?

Article 199 provides definition of the Money Bill. A Bill is deemed to be a Money Bill if it contains only provisions dealing with following matters:

  • The imposition, abolition, remission, alteration, or regulation of any tax
  • The regulation of the borrowing of money or the giving of any guarantee by the State or the amendment of the law with respect to any financial obligations undertaken or to be undertaken by the state
  • The custody of the Consolidated Fund or the Contingency Fund of the Stat, the payment of moneys into or withdrawal of moneys from any such fund;
  • The appropriation of moneys out of the Consolidated Fund of the State
  • The declaring of any expenditure to the expenditure charged on the Consolidated Fund of the State or the increasing of the amount of any such expenditure
  • The receipt of money on account of the Consolidated Fund of the State or Public Account of State or the custody or issue of such money or
  • Any matter incidental to any of the matters specified   aforesaid clauses.

A Bill is not deemed to be a Money Bill only because it provides for imposition of fines or other pecuniary liabilities or for demand or payment of fees for licence or fees for service rendered or by reason that it provides for the imposition, abolition, remission, alteration or regulation of any tax by any local authority or body for local purposes.

Whether a bill is money bill or not, decision of the speaker is final.

The Speaker has to endorse a bill to be money bill before sending it to the Legislative Council or the Governor for his/her assent.

Assent to Bills by Governor

When a bill is passed by state legislature, the bill is presented to the Governor for his assent. Governor may give his assent to the bill, or withhold his assent or he may reserve the bill for assent of the President.

Governor can also return the bill, if it is not a money bill, for reconsideration of the bill or any part thereof by the house. If the house has to reconsider the bill and after reconsideration the house may pass the bill with amendments or without amendments. After reconsideration if the bill is again sent to the Governor, the Governor cannot withhold the assent.

If Governor is of the opinion that the bill will derogate the  power of the High Court, the Governor has to reserve the bill for the consideration of the President.

When Governor can reserve a bill for consideration of President ?

When a bill is reserved for consideration of the President, the President may give assent to the bill or he may withhold assent to the bill.

If the bill is not a money bill, the President may direct the governor to return the bill to the House or houses with a message to reconsider the bill or a part of the bill. State legislature has to reconsider the bill within six months from date receipt and if it is again passed with or without amendment, it has to be again presented before the President.

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Mukesh Kumar Suman is an advocate and legal author based at Delhi. He regularly appears before various Judicial Forums including NCLT, NCLAT, High Courts and the Supreme Court. He can be approached at mukesh_suman@outlook.com or +91 9717864570.

Mukesh Kumar Suman

Mukesh Kumar Suman

Mukesh Kumar Suman is an advocate based at Delhi. He has rich experience in civil, criminal, commercial, arbitration and corporate insolvency matters. He regularly appears before District Courts, NCLT, NCLAT, High Court and the Supreme Court. He can be approached at mukesh_suman@outlook.com or +91 9717864570.

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