Date of entry into
force:
July 24, 2014
(Abstract)
The Law determines the organizational and legal foundations for cooperation
of territorial communities, the principles, forms, and mechanisms of such
cooperation, its incentives, financing, and control.
Article 1 of the Law provides definitions of terms "cooperation
agreement", "cooperation of territorial communities
(cooperation)" and "joint project".
The principles of cooperation are determined in Article 2 of the Law.
The cooperation entities are territorial communities of villages,
townships, and cities. Territorial communities cooperate through village,
townships and city councils. Cooperation is carried out in the sphere of common
interests of territorial communities, within the scope of authority of
appropriate bodies of local self-government, unless otherwise provided for by
law (Article 3 of the Law).
According to Article 4 of the Law, cooperation is carried out in the
following forms:
·
delegation of one
or several tasks to one cooperation entity by other cooperation entities,
together with a transfer of appropriate resources (Article 10 of the Law);
·
implementation of
joint projects, which entails coordination of cooperation entities and
accumulation of resources by them for a specified period of time, with the
objective of joint implementation of appropriate measures (Article 11 of the
Law);
·
joint financing
(keeping) of municipal-owned companies, institutions and organizations
–infrastructural objects, by cooperation entities (Article 12 of the Law);
·
creation of joint
municipal companies, institutions and organizations – joint infrastructural
objects, by cooperation entities (Article 13 of the Law);
·
creation of a
joint management body by cooperation entities, for joint execution of the
authority determined by law (Article 14 of the Law).
Article 5 of the Law establishes that cooperation can be initiated by the
village, township or city head, deputies of the village, township or city
council, or members of the territorial community under a local initiative procedure.
The decision to give consent for organization of cooperation is made by the
village, township or city council, based on the preliminary conclusions of its
executive bodies that the cooperation initiation proposal conforms to the
interests and needs of the territorial community. The decision to give consent
for organization of cooperation, made by the village, township or city council
according to the established procedure, constitutes basis for the village,
township or city head to start negotiations between potential cooperation
entities about its organization, and to create a commission for drawing up the
cooperation agreement draft (hereinafter referred to as
"commission").
Article 6 of the Law is dedicated to negotiations about organization of cooperation.
The commission includes equal numbers of representatives of all cooperation
entities. The commission membership is approved by a joint decree of village,
township or city heads that represent the territorial communities – cooperation
entities. The work form of the commission is a session, held by decision of the
commission head. Decisions made by the commission at the session are recorded
in the minutes, signed by the head of session and the secretary. The commission
session is headed by representatives of the cooperation entities, in turn.
Organizational support of the commission's work is carried out by executive
bodies of village, township or city councils – cooperation entities. The
commission prepares a draft of the cooperation agreement within 60 days of its
creation date (Article 7 of the Law).
According to Article 8 of the Law, village, township or city heads provide
for a community discussion of the cooperation agreement draft prepared by the
commission, within 15 days; based on the results of the discussion, village,
township or city heads present the adoption of agreement draft for
consideration by appropriate councils. The decision to adopt the cooperation
agreement draft is made by village, township or city councils within 30 days of
the community discussion of the agreement draft. The cooperation agreement is
concluded in writing by village, township or city heads, after its draft is
adopted by appropriate village, township or city councils.
The subject of the cooperation agreement is determined according to the
cooperation form chosen by the cooperation entities, as provided for by Article
4 of the Law. The number of copies of the cooperation agreement must correspond
to the number of cooperation entities plus one copy. Each cooperation entity
receives one copy of the cooperation agreement. One copy of the cooperation
agreement is submitted to the central executive authority that provides for
creation of state policy in the sphere of local self-government development, to
be entered into the register of cooperation of territorial communities (Article
9 of the Law).
According to Article 15 of the Law, state incentives for cooperation are
provided by:
·
providing
subventions to local budgets of cooperation entities in the priority spheres of
state policy;
·
transferring state
owned property into municipal ownership of cooperation entities;
·
methodical,
organizational and other support for the work of cooperation entities.
The state provides incentives for cooperation in cases when:
·
the cooperation
increases the ability of cooperation entities to provide for execution of
authority determined by law;
·
the cooperation
attracts additional resources, including financial ones;
·
the cooperation is
carried out by more than three cooperation entities;
·
wide community
participation in the cooperation is provided for.
Article 16 of the Law envisages that cooperation is financed at the expense
of:
·
local budgets of
cooperation entities;
·
self-taxation;
·
other sources not
prohibited by the legislation, in particular, the state budget, international
technical and financial assistance, and credit resources.
Financing of cooperation measures starts from the following budget period.
Cooperation entities ensure open access to reports on the use of funds, through
their own Internet resources.
Article 17 of the Law is dedicated to cooperation monitoring.
According to Article 18 of the Law, cooperation is terminated in the
following cases:
·
the term of
cooperation agreement has expired;
·
the objectives of
cooperation have been achieved;
·
the cooperation
entities failed to fulfill their obligations;
·
one or more
cooperation entities renounced cooperation under the cooperation agreement,
which makes further cooperation impossible;
·
bankruptcy of
municipal-owned companies, institutions and organizations created within the
scope of cooperation;
·
a court resolution
to terminate cooperation;
·
cooperation was
not carried out within one year after the cooperation agreement had taken
effect.
Termination of cooperation is carried out by consent of its entities,
according to the procedure provided by Articles 6-9 of the Law for cooperation
organization, with regard to certain specifics, by concluding an appropriate
agreement by village, township or city heads, after its draft is approved by
village, township or city councils.
Based on the preliminary conclusion of an executive authority of a village,
township or city council of one of cooperation entities, stating that at least
one of the above reasons is present, the village, township or city council
makes a decision to terminate cooperation, and addresses other cooperation
entities with a written proposal to hold negotiations on termination of
cooperation. Cooperation entities communicate the notice of cooperation
termination to the public attention by publishing it in local media.
Negotiations on termination of cooperation are initiated within 30 days after
the cooperation entities receive the respective proposal. Lack of response of
cooperation entities to the proposal for negotiation on cooperation termination
within 30 days of delivery of such proposal is considered to constitute their
agreement to such termination (Article 19 of the Law).
Specifics of cooperation termination depending on the form of cooperation
are determined by Article 20 of the Law.
The Law also introduces appropriate amendments to Article 63, part 1 of the
Economic Code of Ukraine, Article 169, part 2 of the Civil Code of Ukraine, and
Article 26, part 1 of the Law of Ukraine "On Local Self-Government in
Ukraine".
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