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					                                               104
                                              ACT
                                        of 4th April 2000
concerning the State Fund of Traffic Infrastructure and the amendment to Act no. 171/1991
      Sb. concerning the powers of the bodies of the Czech Republic in the matters of
 transferring state property on other persons and on the Fund of National Property, as last
                                          amended

The parliament has passed the following Act of the Czech Republic:

                                          PART ONE
                   THE STATE FUND OF TRAFFIC INFRASTRUCTURE


                                            Article 1
(1)    The State Fund of Traffic Infrastructure seating in Prague (hereinafter referred to as “the
Fund”) is hereby established.
(2)    The Fund is a legal person subordinate to the Ministry of Transport and Communication
(hereinafter referred to as “the Ministry”).
(3) The property managed by the Fund is the state property.


                                            Article 2
                                      Purpose of the Fund
The Fund employs its income in favour of the development, construction, maintenance and
modernisation of roads and motorways, railway routes and inland waterways within the following
scope:
a)      the funding of the construction, modernisation, repairs and maintenance of roads and
        motorways1;
b)      the provision of contributions to the construction and modernisation of the through
        lengths of roads and motorways;
c)      the funding of the construction, modernisation, repairs and maintenance of national and
        regional railways2;
d)      the funding of the construction and modernisation of inland waterways, important in
        terms of traffic3;
e)      the settlement of the instalments of credits, credit interests and other expenditures
        connected with the provision of debt service;
f)      the provision of contributions to survey and design works, studies and expert activities
        aimed at the construction, modernisation and repairs of roads and motorways, inland
        waterways important in terms of traffic and at the building of national and regional
        railway routes;
g)       the provision of contributions to the implementation of programmes aimed at the
         improvement of traffic safety and making it more accessible for persons with the limited
         ability of motion and orientation;
h)       the provision of contributions to the construction and maintenance of cycle tracks;
i)       the costs of the Fund activities.


                                               Article 3
(1)    The Fund shall conclude agreements with the beneficiaries of the financial sources
provided by the Fund according to the specific regulation of law4 in order to achieve the purpose
of the Fund referred to in Article 2. The Fund shall be responsible for the efficient use of the
sources in compliance with the approved budget.
(2)     The Fund shall be entitled to inspect the use of financial sources with the beneficiaries in
accordance with the agreements concluded under paragraph (1). In case that any substantial
disaccord is ascertained, the Fund shall be entitled to ask the financial sources to be paid back or
their drawing suspended, and to take any necessary measures to provide for the expected
efficiency and compliance of financed activities with applicable regulations and international
obligations.
The Fund shall be entitled to ascertain any data necessary for such inspection with both the
beneficiaries of financial sources and persons bound to the beneficiaries by contractual relations.
(3)    Details about the Fund activities and on its internal organisational structure shall be
defined by the Fund statute, approved by the Government on the proposal of the Minister of
Transport and Communications.


                                               Article 4
                                             Fund Income
(1)    The income of the Fund consist of:
a)       the transfers of sources from the Fund of National Property;
b)       the transfers of road tax yields;
c)       the transfers of the share in the yields of the excise tax on hydrocarbon fuels and
         lubricants;
d)       the transfers of the yields of charges for the use of selected motorway and speedway
         types;
e)       the yields of securities or public collections organised by the Fund;
f)       credits, interests on deposits, penalties, insurance benefits and other payments from
         physical and legal persons;
g)       contributions from European Commission provided through relevant European funds;
h)       donations and inheritances;
i)       allocations from the national budget.
(2)     The level of the share in the yields of the excise tax on hydrocarbon fuels and lubricants
shall be laid down by the specific regulation of law.
(3)     The Fund, in behalf of the Czech Republic, may accept and use donations and
inheritances only under the conditions and for the purposes laid down by the donor or testator, as
far as the conditions and purposes are compliant with the purpose of the Fund activity.
(4)     At the end of each calendar year the balance of the Fund income shall be carried over to
the calendar year to follow.


                                              Article 5
                           The Budget and Accountancy of the Fund
(1)    For each budgetary year, the Fund shall draw the draft of the Fund budget. The draft shall
be submitted, through the Minister, to the Government for discussion and to the House of
Deputies of the Parliament of the Czech Republic for approval, simultaneously with the draft of
the National Budget. The Fund budget includes:
a)       the specification of actions financed from the Fund budget, including the budgeted
         amounts and terms of implementations;
b)       the overview of amounts receivable and amounts payable;
c)       the proposal of the structure of credits that the Fund intends to accept, including their
         terms of maturity and interest rate limits;
d)       the proposal of the schedule of the principal and the interests of the accepted credits.
(2)    After the end of the budgetary year the Fund shall draw the draft of the annual balance of
accounts and the annual report on the Fund activities (hereinafter referred to as “annual report”)
and submit it, through the Minister, to the Government for discussion and to the House of
Deputies of the Parliament of the Czech Republic for approval, within three months after the end
of the budgetary year. Before submitting it to the House of Deputies, the annual balance of
accounts of the Fund shall be verified by the auditor.
(3)    The page of expenses of the Fund budget shall be structured in compliance with the
purpose of the Fund as referred to in Article 2 (a) through (i) and to particular investment actions.
(4)    Any additional acceptance of credits within the budgetary year shall be approved by the
Government based on the draft submitted by the Fund through the Minister. The provision of
paragraph (3) shall be applied as appropriate.
(5)    The Fund shall keep its books of accounts as provided by the specific regulation of law6.
(6)    The Fund economy shall be divided into two separate accounting sections allowing to the
separate monitoring of the costs of the Fund own activities and the costs of other Fund
operations.


                                              Article 6
                                         The Fund Bodies
The Fund bodies comprise the Fund Committee (hereinafter referred to “the Committee”), the
Fund Supervisory Board (“Supervisory Board”) and the Director of the Fund (“the Director”).
                                         The Committee
                                             Article 7
(1)    The Committee has nine members and is chaired by the Minister.
(2)   The Government shall appoint and recall the Vice-chairman and other seven members of
the Committee for the period of four years, on the proposal of the Minister. The members of the
Committee may be appointed for not more than two successive terms of office.
(3)     The chairman manages the activity of the Committee. The dealings of the Committee
shall be governed by the rules of procedure to be approved by the resolution of the Committee
itself.
(4)    The members of the Committee are entitled to a remuneration to be fixed by the resolution
of the Government. Both the remuneration and refunds of wages paid to the employer of the
Committee members shall become the costs of the Fund own activities to Article 2 (i).
(5)    The membership of the Committee shall be deemed an obstacle in work due to the reason
of public interest pursuant to the specific regulation7.


                                             Article 8
(1)   The Committee shall deal the matters constituting the purpose or object of activity of the
Fund.
(2)    The Committee shall approve:
a)      the draft of the Fund budget;
b)      the draft of annual balance of accounts of the Fund;
c)      the draft of the annual report of the Fund;
d)      the time schedule of the incomes and expenditures of the Fund;
e)      the yearly programme of the competitions of tenders to be invited for implementing
        investment actions, to a specific regulation of law;
f)      any release of sources for investment actions pursuant to the approved statute of the
        Fund;
g)      inspection reports on the progress of investment actions;
h)      the final accounts of investment actions.
(3)   The Ministry shall publish the decisions of the Committee in the Bulletin of
Transportation (“Věstník dopravy”).
(4)   The Committee shall appoint and recall the Director. The appointment shall constitute the
employment contract with the Fund.
(5)    The Committee shall fix the salary of the Director pursuant to the specific regulation8.
                                             Article 9
                                      The Supervisory Board
(1)     The Supervisory Board shall be the body of the Fund control. It shall supervise the
activities and economy of the Fund. The House of Deputies of the Parliament of the Czech
Republic shall elect and recall the members of the Supervisory Board for the term of office of
four years.
(2)    The Supervisory Board shall elect its Chairman and Vice-chairman form its members. The
Supervisory Board decides on its resolutions by vote. The election is made or the resolution is
accepted if supported by the vote of four members of the Supervisory Board, at least.
(3)   The dealings of the Supervisory Board shall be governed by the rules of procedure to be
approved by the resolution of the Supervisory Board itself.
(4)    The Supervisory Board shall inform the Ministry, the Government and the House of
Deputies of the Parliament of the Czech Republic of any ascertained in the activities and
economy of the Fund without any delay.
(5)     The members of the Supervisory Board are entitled to a remuneration to be fixed by the
resolution of the Government. Both the remuneration and refunds of wages paid to the employer
of the Supervisory Board members shall become the costs of the Fund own activities to Article 2
(i).
(6)    The membership of the Supervisory Board shall be deemed an obstacle in work due to the
reason of public interest pursuant to the specific regulation7.


                                            Article 10
                                           The Director
(1)    The Director is a statutory body of the Fund.
(2)    In particular, the Director shall
a)      implement the decisions of the Fund on the release of sources for particular actions
        according to Article 2;
b)      take other measures approved or negotiated by the Committee;
c)      manage the activities of the Fund staffs.


                                            Article 11
                                   Conflict of Interests Clause
(1)    The execution of the offices of the Vice-chairman of the Committee, the member of the
Committee and the member of the Supervisory Board is incompatible with the post of the
Director, with any employment contract with the Fund and with any function in the managing or
supervisory bodies of the legal persons whom any sources of the Fund have been granted.
(2)     The members of the Fund bodies must not have any gainful employment, service or
similar contract with the physical and legal persons whom any sources of the Fund have been or
are to be granted.
(3)    In case of any breach of obligations referred to in paragraphs (1) and (2) is committed by
the Vice-chairman or a member of the Committee, the Government shall recall the person in
breach from his (her) office.
(4)   The Fund shall be entitled to ask the person in breach to surrender the benefit gained this
way. This provision shall not be to prejudice of the right to damages.


                                             Article 12
The remuneration of the employees of the Fund shall be governed by the specific regulation of
law8.



                                            PART TWO
The amendment to Act no. 171/1991 Sb. concerning the powers of the bodies of the Czech
Republic in the matters of transferring state property on other persons and on the Fund of
                            National Property, as last amended

                                             Article 13
(Act no. 171/1991 Sb. concerning the powers of the bodies of the Czech Republic in the matters
of transferring state property on other persons and on the Fund of National Property as amended
by Act no. 285/1991 Sb., Act no. 438/1991 Sb, Act no. 569/1991 Sb., Act no. 282/1992 Sb., Act
no. 210/1993 Sb., Act no. 224/1994 Sb., Act no. 120/1995 Sb. and Act no. 135/1994 Sb. shall be
amended as follows:
1.     Article 18 (2) (b) (7) is worded as follows:
“7.    for the transfer to the State Fund of Traffic Infrastructure for the funding of the
       construction, modernisation, repairs and maintenance of national and regional railways,
       provided that the involved property is the property of the Fund obtained by privatising
       the property of the Czech Railways;”
2.     After Article 18 (2) (b) (7) the new point (8) is inserted and worded as follows:
“8.    for the transfer to the State Fund of Traffic Infrastructure.”
Points (8) and (9) become points (9) and (10).



                                          PART THREE
                                    TRANSIENT PROVISION
                                             Article 14
The Fund shall draw its budget for the year of 2000 as tied in to Chapter 327 of the National
Budget for 2000 and shall submit the budget to the House of Deputies of the Parliament of the
Czech Republic for approval.
                                                  PART FOUR
                                                     EFFECT
                                                    Article 15
This Act shall come into effect on the day of 1st July 2000.



                                                     Klaus V.
                                                     Havel V.
                                                    Zeman M.




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1
  Article 2 (2) of Act no. 13/1997 Sb. concerning surface communications.
2
  Article 3 (1) of Act no. 266/1994 Sb. concerning railways, as amended by Act no. 23/2000 Sb.
3
  Article 3 of Act no. 114/1995 Sb. concerning inland navigation.
4
  Act no. 513/1991 Sb., Commercial Code, as last amended.
5
  Act no. 13/1997 Sb., as last amended.
6
  Act no. 563/1991 Sb. concerning bookkeeping, as last amended.
7
  Article 124 (1) of Act no. 65/1965 Sb., Labour Code, as amended by Act no. 74/1994 Sb.
8
  Act no. 143/1992 Sb. concerning salaries and remuneration for the readiness to work in budgetary and certain other
  organisations and bodies, as last amended.

				
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