Act No. 59 / 2000 Coll.
Public aid law
Valid
Law
Effective from 01.05.2000
Contents
59
THE LAW
of 24 February 2000
on public aid
Parliament has decided on this law of the Czech Republic:
GENERAL PROVISIONS
Subject matter
(1) This law regulates the procedure for assessing the compatibility of public aid with the obligations of the Czech Republic under the European agreement.1)
(2) This law does not apply to public aid granted to agriculture and fisheries.
Public aid
(1) Public aid granted in a way which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods, to the extent that trade between the Czech Republic and the Member States of the European Union may be affected, is incompatible with the obligations of the Czech Republic under the Europe Agreement and is prohibited.
(2) The prohibition of public aid provided for in paragraph 1 shall apply unless otherwise provided for in this law or the Office for the Protection of Competition (3) (hereinafter referred to as "the Office") has granted an exemption.
Basic concepts
For the purposes of this Act:
(a) public aid for any form of aid, including public aid programmes, or advantages favouring entrepreneurship (2) or the production sector provided by the Czech Republic, the Ministry, another administrative authority, a self-government authority or a public body;
(b) public funds of the state budget, including funds due and outstanding, resources of state financial assets, 4) state funds, national assets of the Czech Republic, 5) public health insurance, Czech national banks serving the safe functioning and efficient development of the banking system, funds of the budgets of local and local authorities, funds of legal persons owned by the State in full or to the extent that they allow them to exercise direct or indirect control, 6) if such funds are used in a manner which is not consistent with market principles, in particular the principle of achieving the highest level of profit, or the resources resulting from the advantage conferred,
(c) the public aid provider is the one who decides to grant it;
(d) the draftsman of public aid is the body headed by a member of the Government of the Czech Republic, who submits a proposal to the Government of the Czech Republic for public support or a proposal to a public aid programme;
(e) the recipient of public aid by a legal or natural person for whose benefit the decision to grant public aid has been taken;
(f) the rate of public aid, the proportion of the amount of public aid to the costs which may be supported, expressed as a percentage,
(g) a public authority or a public authority;
(h) a summary of the conditions for the granting of individual public aid, including their level.
EXEMPTIONS FROM THE PUBLIC AID PROHIBITION
General exemptions
(1) The prohibition in Paragraph 2 (1) does not apply to public aid
(a) a small amount granted to the beneficiary during the three-year period beginning on the date on which the public aid was granted, not exceeding a total amount in CZK corresponding to EUR 100 000 in conversion at the foreign exchange market rate declared by the Czech National Bank on the date on which the public aid in question was first granted, excluding export aid; this exemption does not apply to public aid granted to coal and steel, transport and shipbuilding,
(b) the social character granted to individual consumers on condition that it is granted without discrimination based on the origin of the products;
(c) intended to compensate for damage caused by natural disasters (7) or other exceptional occurrences.
(2) By decree, the Authority may grant a group exemption from the prohibition of public aid under Article 2 (1), in particular public aid for small and medium-sized enterprises, public aid for science and research, public aid for environmental protection, public aid for employment and training, public aid for regional character.
Specific exemptions
The Authority may grant an exemption from the prohibition of public aid provided for in Article 2 (1), in particular in the case of public aid
(a) to assist the economic development of areas with abnormally low living standards or high unemployment, i.e. public support of a regional nature;
(b) contribute to the implementation of an important project of common interest of the Czech Republic and the European Union ("common interest") or to remedy a serious disturbance in the Czech economy;
(c) facilitate the development of certain economic activities or areas where they do not adversely affect trading conditions between the Czech Republic and the Member States of the European Union to an extent contrary to the common interest;
(d) promote culture and heritage conservation if it does not affect trade conditions between the Czech Republic and the Member States of the European Union and competition to an extent contrary to the common interest.
PROCEDURE FOR AUTHORISING EXEMPTIONS BEFORE THE OFFICE
Procedure
(1) The procedure for the authorisation of an exemption shall be initiated either on the basis of the "Request for exemption 'in accordance with the model set out in the Annex to this Act, submitted to the Office by the public aid provider, where the Government of the Czech Republic is the provider of public aid, the promoter of public aid (hereinafter referred to as" party to proceedings'), or on his own initiative.
(2) The Office may, in the course of the proceedings, invite its participants to cooperate as necessary, in particular to supplement the information needed to examine the application.
(3) Following the examination of the application, the Office shall issue a decision on the compatibility of public aid with the obligations of the Czech Republic under the Europe Agreement by which an exemption from the general prohibition on the granting of public aid referred to in Article 2 (1)
(a) permit:
(b) authorise only under the conditions laid down; or
(c) not allow.
(4) The Office shall stop the proceedings initiated by decision if:
(a) finds that the case under consideration does not constitute public aid;
(b) the party to the proceedings does not provide the Office with the necessary synergies to take the decision, in particular if the information required to examine the application is not completed.
(5) The decision of the Office under this Part, with the exception of paragraph 4, shall not be subject to decomposition. The decision of the Office shall be reviewed by the court.
(1) When the Commission asks the European Communities (8) for consultation, 9) The Authority shall initiate such consultation and inform the public support providers and the applicants without delay.
(2) The Office shall, during the consultations, suspend the proceedings by its decision. If the proceedings are suspended, the time limits under this law do not run.
(3) If the Association Committee issues recommendations (10) after consideration of public support, the Authority shall act in accordance with this Recommendation.
The staff of the Office, as well as those entrusted with carrying out the tasks falling within the competence of that Office, shall be obliged to remain silent about the facts constituting the commercial secret (11) of the undertakings which they have become aware of in the performance of the tasks, even after their employment relationship with the Office has ceased. 12)
INFORMATION OBLIGATIONS, EVIDENCE AND CONTROL OF THE PROVISION OF PUBLIC AID
(1) The Public Aid Provider, if the Government of the Czech Republic is the Provider of Public Aid, is obliged to inform the Office of the public aid granted.
(2) The Authority shall keep a record of the public aid granted and check that it has been granted in accordance with this Law.
(3) The Authority may check with the beneficiary of the public aid whether this public aid has been used in accordance with this Law.
(4) The beneficiary of the public aid shall provide the Office with the complete and true supporting documents and information necessary for carrying out the check referred to in paragraph 3.
(5) The Office shall, when carrying out the checks referred to in paragraph 3, proceed with specific legislation. 13)
PROCEDURE FOR REPEALED PUBLIC AID
(1) The procedure for the cancellation of the public aid granted shall be initiated at the initiative of the Office no later than 10 years after the granting of the public aid.
(2) The party to the proceedings under this section shall be the provider or, if the government of the Czech Republic is a provider of public aid, the promoter and the recipient of public aid.
(3) The parties to proceedings shall, upon request, provide the Office with all complete and true supporting documents and information necessary for its decision.
(4) The Office shall require the provider or the applicant to immediately suspend the granting of public aid if he finds that:
(a) the public aid granted or granted has been granted in contravention of the Authority's decision pursuant to Article 6 (3); or
(b) the public aid was granted before the decision was taken, except where Article 4 applies;
(c) the public aid is not used by the beneficiary in accordance with the conditions laid down in the decision referred to in Article 6 (3).
(5) The Authority shall, in the cases referred to in paragraph 4 (a) and (c), take a decision on the obligation to:
(a) the provider or the appellant shall adjust the conditions for granting public aid within the time limit laid down by the Authority; or
(b) the recipient of the public aid to the provider, if the provider is the Government of the Czech Republic, of the appellant in the Office, as from the date on which the public aid was not granted in accordance with this Act, if the beneficiary is no longer obliged to pay the public aid granted under a specific law. 14)
(6) At the same time, the beneficiary is obliged to pay interest for each day from the date on which the public aid was not granted or used in accordance with this Act, at the rate corresponding to the discount interest rate of the Czech National Bank plus 4 percentage points applicable on the first day of the relevant calendar quarter if the public aid is paid under this Act. Interest shall be charged to the State budget. Interest is collected and enforced by the Bureau.
(7) In the event that public aid has not been granted by the provider in accordance with this Law and the provider is a State or a local authority within a separate scope, the provider shall be liable for any damage caused to the recipient under specific legislation. 15)
(8) In the event that the decision to abolish the public aid granted is based on a decision on compatibility under Paragraph 6 (3) which does not comply with this Law, the Office shall be liable for any damage under a special law. 15)
(9) Where the Office finds that public aid has not been granted or used in breach of this law, it shall issue a decision terminating the procedure.
(10) The decision of the Office pursuant to Part Five shall not be appealed nor shall a breakdown be lodged. The decision of the Office shall be reviewed by the Court within 10 months of the receipt of the decision of the Office to cancel the public aid granted.
Fines
(1) The Office may impose a fine of up to 1% on the public aid provided for in Article 9 (1) for failure to fulfil the information obligation.
(2) For failure to fulfil the obligations under Section 9 (4), the Office may impose a fine of up to CZK 500 000 on the recipient of public aid.
(3) For failure to comply with an enforceable decision given pursuant to Paragraph 10 (4), the Office may impose a fine on the parties up to the amount of public aid granted.
(4) The fine referred to in the preceding paragraphs may be imposed within 3 years of the finding of an infringement, but not later than 10 years of the infringement.
(5) The fines are collected and enforced by the Office and are revenue from the State budget.
TRANSITIONAL AND FINAL PROVISIONS
Within one year of the entry into force of this Act, the Office shall draw up a list of public aid granted and public aid programmes, including public aid, the granting of which has been initiated and has not been completed before the date of application of this Act.
In order to implement Section 9, it shall issue: The Authority shall publish a notice setting out the time limits within which the information obligation is to be fulfilled and the content of the information obligation such as the designation of the beneficiary, the amount and form of the public aid in question, the declaration that it has not been exceeded, and other information required by each type of public aid.
(1) The Office publishes decisions under this Act in the Reports of Decisions of the Authority for the Protection of Competition.
(2) The time limit provided for in Article 6 (1) may be applied at the earliest on 11 July 1998, when Decision No 1 / 1998 of the Association Council between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part, adopted implementing rules for the application of the State aid provisions took effect.
Unless otherwise provided for in this Law, the provisions of the Administrative Rules (16) shall apply to proceedings before the Office, with the exception of Sections 6, 8, 13, 14, 26, 29, 30, 45, 50, 51 (2), 53 to 61, 65, 66, 67 and 69.
This Act shall take effect on 1 May 2000.
Klaus v. r.
Havel v. r.
Zeman v. r.
Annex to Act No 59 / 2000 Coll.
Application for exemption under the provisions of Section 6 of the Act
Application for exemption under the provisions of Section 6 of the Act
1) Article 64 of Communication No 7 / 1995 Coll., on the negotiation of a Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part.
2) Act No. 513 / 1991 Coll., Commercial Code, as amended.
3) Act No. 273 / 1996 Coll., on the jurisdiction of the Competition Authority, as amended by Act No. 187 / 1999 Coll.
4) Paragraph 18 (1) of Act No. 576 / 1990 Coll., on the Rules of Management of the Budget Funds of the Czech Republic and the Municipality of the Czech Republic (Budget Rules of the Republic).
5) Act No. 171 / 1991 Coll., on the jurisdiction of the authorities of the Czech Republic in the case of transfers of State assets to other persons and on the National Property Fund of the Czech Republic, as amended.
6) Paragraph 8 (2) of Act No. 63 / 1991 Coll., on the Protection of Competition, as amended by Act No. 286 / 1993 Coll.
7) Paragraph 24 (10) of Act No. 586 / 1992 Coll., on Income Tax, as amended.
8) Article 1 of Communication No 225 / 1998 Coll., adopting Decision No 1 / 1998 of the Association Council between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part, of 24 June 1998 laying down detailed rules for the application of the provisions on State aid referred to in Article 64 (1) (iii) and (2), pursuant to Article 64 (3) of the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Czech Republic, of the other part.
9) Article 7 of Communication No 225 / 1998 Coll.
10) Article 104 et seq.
11) § 17 of Act No. 513 / 1991 Coll.
12) Act No. 65 / 1965 Coll., Labour Code, as amended.
13) Act No. 552 / 1991 Coll., on State Control, as amended.
14) For example § 30 of Act No. 576 / 1990 Coll.
15) Act No. 82 / 1998 Coll., on liability for damage caused in the exercise of public authority by decision or by incorrect official procedure and amending Act No. 358 / 1992 Coll., on notaries and their activities (notarial order).
16) Act No. 71 / 1967 Coll., on Administrative Procedure (Administrative Regulations), as amended by Act No. 29 / 2000 Coll.
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Regulation Information
| Citation | Act No. 59 / 2000 Coll., on Public Aid |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 24.03.2000 |
|---|---|
| Effective from | 01.05.2000 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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