7th June 2012

Chamber of Deputies discussed a clarifying proposal on possession expropriation

The Chamber of Deputies discussed a governmental proposal of amendments to the Act on Possession Expropriation (zákon o vyvlastnění) at its plenary session on 7 June (in the first reading; the Bill has been put forward to the Committee on Civil Service and Regional Development). The Bill regulates the process of expropriation in several terms. At first, the Bill stipulates “public interest” based on which the expropriation could be processed. The “intention” of the expropriation should be clarified in the Bill in the future; the current wording of the Act is referencing to other specialized Acts (i.e. Construction Act, Act on Communications etc). Secondly, the Bill stipulates a necessity of reaching an agreement between a state organization that is responsible for the processing of the public interest (i.e. infrastructure development processed by the State Authority for Constructing) and an owner of possession. The reaching of the agreement has not been obligatory yet. In case any agreement could not be concluded, the expropriation should be settled down by the court decision. The Bill also regulates refunds for expropriation and the court procedure. 
In case the successful passing the Bill by the Chamber of Deputies and Senate, the Act should come into force in three months after promulgation. However, the Committee on Civil Service and Regional Development has not set the term of following up with the Bill yet.

For further information regarding the Bill, click here (Chamber of Deputies); source: explanatory report.

On 7 June, The Chamber of Deputies also discussed a governmental amendment to the Act on Tax Transfers (zákon o rozpočtovém určení daní) in the first reading. The Bill has been discussed by the Government on 23 May. The Bill regulates division of tax revenues among the state budget, regional and municipal budget according to the place of tax payments. The aim of the bill is to change the rate of transfers that should be returned back to municipal and regional budgets.
The Bill is heading to the Budget Committee; the Committee set the term of further following up with the Bill on 13 June.

For further information, click here (Chamber of Deputies). Information regarding the division of tax revenues, see here (explanatory report of the amendment).

Members of the American Chamber of Commerce in the Czech Republic