23rd September 2012

Chamber of Deputies Meeting: Budget Rules Discussed and Insolvency Act Changed

At its session on 19 September, the Chamber of Deputies discussed the governmental proposal of transparent budget rules in the second reading (zákon o rozpočtových pravidlech). The Bill stipulating a unified state control over the state treasury has been amended by Deputies. The Deputies have proposed changes in financing and budget setting of public officials institutions. Budgets of institutions such as both chambers of the Parliament, the Highest Control Office, and the Constitution Court should be set by the Budget Committee of the Chamber of Deputies. However, the proposed amendments do not require the Budget Committee to intervene in the budget setting process in case of not exceeding the amount of money approved at the state budget level one year before. Only in case of exceeding the amount of money, budgets of those institutions should be revised by the Ministry of Finance as well as the Budget Committee of the Chamber of Deputies.

The Bill is heading to the third reading. 
For further information regarding the Bill, click here (the Chamber of Deputies web sites).

The Chamber of Deputies also approved the Act on Possession Expropriation (zákon o vyvlastnění) in the second reading. The Committee on Civil Service and Regional Development recommended amendments that should easier enable to expropriate private possession based on the decision of any public official institution (not only on the base of judicial decision as the governmental proposal stated).

For further information regarding the amendment, click here (the Chamber of Deputies web sites). 

The Chamber of Deputies also approved amendments to the Act on Insolvency that were proposed by the Senate (zákon o úpadku). The Senate rejected the previous version of the Act at its meeting on 15 August. The main aim of the amendment is to precisely stipulate that in case of debts satisfaction after the initiation of insolvency proceedings the debtor is to pay the legal proceedings costs. The Ministry of Justice, as the proposer of the previous version of the Bill, declares its approval with the Senate’s amendments.

The Bill is currently heading to the President. In case of his approval, the Bill should come into force in the next month after its declaration in the legal code. 
For further information regarding the Bill, click here (the Chamber of Deputies web sites).

Members of the American Chamber of Commerce in the Czech Republic