The Saeima1 has adopted
and the President has proclaimed the following Law:
Law On Management of European
Union Structural Funds and the Cohesion Fund for the 2014-2020
Programming Period
Chapter I
General Provisions
Section 1. Terms Used in this
Law
The following terms are used in this Law:
1) Responsible Institution - the line ministry or the
State Chancellery, which as an intermediate body implements a
part of the functions of the Managing Authority, that are laid
down in Regulation (EU) No 1303/2013 of the European Parliament
and of the Council of 17 December 2013 laying down common
provisions on the European Regional Development Fund, the
European Social Fund, the Cohesion Fund, the European
Agricultural Fund for Rural Development and the European Maritime
and Fisheries Fund and laying down general provisions on the
European Regional Development Fund, the European Social Fund, the
Cohesion Fund and the European Maritime and Fisheries Fund and
repealing Council Regulation (EC) No 1083/2006 (hereinafter -
Regulation No 1303/2013), in the amount laid down in this
Law;
2) beneficiary -
a) a direct or indirect administrative institution, derived
public person, another State institution, a project application
of which is approved in accordance with the procedures laid down
in this Law,
b) a natural person registered as a performer of economic
activities or association of such persons (hereinafter - a
natural person), a project application of which is approved in
accordance with the procedures laid down in this Law,
c) a legal person registered in the Republic of Latvia or
association of such person (hereinafter - a legal person), a
project application of which is approved in accordance with the
procedures laid down in this Law,
d) a legal person in the case of financial instruments and the
fund of funds in conformity with that laid down in Article 2(10)
of Regulation No 1303/2013;
3) planning documents - partnership agreement and
operational programme;
4) project applicant - a direct or indirect
administrative institution, derived public person, another State
institution, a natural person, and also a legal person submitting
a project application;
5) project application - an application (a filled-in
form, annexes thereof and other documents) submitted by the
project applicant in order to candidate for the funding necessary
for the project from the European Union Structural Fund or
Cohesion Fund (hereinafter - the European Union fund);
6) file of a project - a project application,
evaluation documents of the project application, civil legal
contract (hereinafter - the Contract) or agreement regarding
project implementation and other documents related to the
project;
7) project - a project application, which complies with
the project application evaluation criteria and which is approved
by the Co-operation Institution;
8) project application selection methodology - a
document which contains a description regarding the types of
project application evaluation criteria, development and
evaluation principles, and also regarding the principles for
project application selection;
9) project application selection regulations - a set of
documents where information regarding the procedures for
submission of project applications and evaluation thereof,
project application evaluation criteria, methodology for the
application of project application evaluation criteria, draft
contract or agreement regarding project implementation and other
information necessary for project application selection is
included;
10) project application evaluation criteria -
conditions in accordance with which a project application is
assessed and a decision is taken to approve it, to approve with a
condition or to reject it;
11) methodology for the application of project application
evaluation criteria - a document which contains a description
regarding application of each criteria for project application
evaluation and which is to be observed by the members of the
project application evaluation committee and involved experts in
the evaluation of project applications for a particular specific
objective;
12) Co-operation Institution - direct State
administrative institution, which as an intermediate body
implements a part of the functions of the Managing Authority,
that are laid down in Regulation No 1303/2013, in the amount laid
down in this Law;
13) eligible State budget co-funding - a part of the
State funding which is planned in addition to the funding of
European Union fund to cover eligible expenditure of a
project;
14) State budget co-funding rate- eligible State budget
co-funding in per cent against total eligible expenditure of a
project;
15) overcommitments - additional commitments to make
payments from the State budget to cover eligible expenditure that
exceed amount of the funding of the European Union fund and
eligible State budget co-funding.
Section 2. Purpose of this Law
The purpose of this Law is to ensure the efficient and
transparent implementation of the European Union funds in Latvia
in accordance with the principles of sound financial
management.
Section 3. Scope of Application of
this Law
(1) This Law prescribes the rights and obligations of
institutions involved in the management of European Union funds
and the beneficiary, the procedures for taking, contesting and
appeal of decisions taken by the involved institutions, and also
the amount of the State budget co-funding rate and conditions for
planning of overcommitments.
(2) When implementing financial instruments and the fund of
funds, this Law shall be applied insofar as it is in accordance
with the provisions of Regulation No 1303/2013.
(3) Chapter IV of this Law shall not apply to financial
instruments and the fund of funds.
Section 4. Management of European
Union Funds
Management of European Union funds shall be the preparation,
harmonisation and approval of the necessary planning documents,
establishment of a management system of European Union funds,
implementation of financial instruments and the fund of funds,
development of the project application evaluation criteria,
selection of project applications, control, auditing, monitoring
and evaluation of a management system of European Union funds and
projects, certification of expenditure made within the projects,
development and maintenance of the information system for the
management of European Union funds.
Section 5. Rights to Receive Funding
of European Union Funds
Submission of a project application in accordance with this
Law shall not make any obligation for the institution involved in
the European Union fund management to grant funding to a project
application for the project implementation. A decision to refuse
to grant funding within the meaning of the laws and regulations
governing administrative proceedings shall be evaluated as a
negative administrative act, but shall not be considered as an
unfavourable administrative act.
Section 6. Amount of the State
Budget Co-funding Rate
The State budget co-funding rate shall not be higher than
minimum possible with which it is possible to ensure the
co-funding rate of the European Union fund laid down for the
relevant priority axes of operational programme in the decision
of the European Commission to approve operational programme.
Section 7. Amount of
Overcommitments
Overcommitments shall not exceed five per cent of the funding
of the European Union funds planned for the operational
programme. The Cabinet may decide on increase of the
overcommitments above this limit, if it is necessary for complete
use of the European Union funds and if it does not cause any risk
for additional expenditure to cover eligible expenditure planned
in the State budget.
Section 8. Horizontal Principles
The institutions responsible for co-ordination of horizontal
principles referred to in Articles 7 and 8 of Regulation No
1303/2013, rights and obligations thereof shall be determined by
the Cabinet.
Chapter II
Provision of Management of European Union Funds and Project
Implementation
Section 9. Institutions Involved in
the Management of European Union Funds
(1) Management of European Union funds shall be provided by
the following institutions involved in the management of European
Union funds:
1) Managing Authority;
2) Responsible Institution;
3) Co-operation Institution;
4) Audit Authority;
5) Certifying Authority;
6) Monitoring Committee.
(2) In order to achieve the objective of this Law,
institutions involved in the management of European Union funds
shall develop methodology materials and co-operate with other
institutions in accordance with the procedures laid down in the
State Administration Structure Law.
(3) In order to perform efficiently the obligations referred
to in Section 11, Paragraph three and Section 12, Paragraph three
of this Law, especially in the cases when the Co-operation
Institution requires support in sector policy issues, the
Co-operation Institution and Responsible Institution or other
direct administrative institution shall enter in to
interdepartmental agreement by co-ordinating it with the Managing
Authority.
Section 10. Managing Authority,
Duties and Rights Thereof
(1) The functions of the Managing Authority shall be fulfilled
by the Ministry of Finance.
(2) The Managing Authority has the following duties:
1) to ensure efficient management of the implementation of the
European Union funds;
2) to ensure the development of planning documents, by taking
into account partnership and multilevel management principle;
3) to develop and submit a description of management and
control system to the Audit Authority;
4) to carry out supervision and control of activities of
Responsible Institutions and Co-operation Institution;
5) to ensure the management of technical assistance of
European Union funds and efficiency of implementation thereof,
including performing the duties of the Responsible Institution
referred to in this Law for the implementation of this task;
6) to co-ordinate and submit an application of the major
project (within the meaning of Article 100 of Regulation No
1303/2013) to the European Commission in accordance with the
provisions included in Articles 101 and 102 of Regulation No
1303/2013;
7) to ensure performance of the management information,
publicity and communication measures of European Union funds,
including to develop the communication strategy referred to in
Article 116 of Regulation No 1303/2013;
8) to provide information to Responsible Institutions and
Co-operation Institution according to the competence thereof in
accordance with Article 125(2)(c) of Regulation No 1303/2013;
9) to develop methodology for selection of project
applications in conformity with Article 125(3)(a) of Regulation
No1303/2013, to submit it for approval to the Monitoring
Committee on the basis of Article 110(2)(a) of Regulation
No1303/2013;
10) to develop procedures referred to in Article 125(4)(d) of
Regulation No 1303/2013 in conformity with the competence
thereof;
11) to develop strategy for fraud and corruption combating in
conformity with Article 125(4)(c) of Regulation No 1303/2013;
12) to ensure measures for the evaluation of the
implementation of the European Union funds;
13) to co-ordinate information to be submitted to the
Certifying Authority prepared by Co-operation Institutions
regarding expenditure to be included in the payment application
and to provide the information at the disposal thereof to the
Certifying Authority for drawing up of the payment application
and closure of accounts;
14) to develop management declaration referred to in Article
125(4)(d) of Regulation No 1303/2013 in conformity with the
competence thereof;
15) to perform the functions referred to in Article 125(1),
(2)(a) and (b) and (3)(g) of Regulation No 1303/2013;
16) to ensure the strategic management of the information
system of European Union funds;
17) to enter into a delegation agreement with a republic city
local government regarding integrated implementation of
territorial investments in accordance with Article 7(4) and (5)
of Regulation (EU) No 1301/2013 of the European Parliament and of
the Council of 17 December 2013 on the European Regional
Development Fund and on specific provisions concerning the
Investment for growth and jobs goal and repealing Regulation (EC)
No 1080/2006. The Managing Authority shall develop a draft
agreement in co-operation with the Responsible Institution which
ensures the implementation of the relevant specific objective.
Tasks which are not delegated to the relevant local governments
shall be performed in accordance with procedures laid down in
this Law;
18) to carry out other duties laid down in this Law.
(3) The Managing Authority has the following rights:
1) to propose to carry out and to carry out control of the
implementation and auditing of the European Union funds;
2) to request information, which is necessary for the
provision of the management of European Union funds, from
institutions involved in the management of European Union funds
and beneficiaries;
3) in accordance with the procedures and cases stipulated by
the Cabinet to suspend temporarily further declaration of
expenditure made within the framework of the operational
programme, priority axes, investment priority, specific objective
or project to the European Commission and adjust the amount of
expenditure declared previously;
4) in order to fulfil the duties referred to in Paragraph one
of this Section efficiently, to issue internal regulatory
enactments binding to the Co-operation Institution in relation to
the fulfilment of tasks assigned thereto.
(4) The Ministry of Finance shall ensure that the functions,
which it fulfils as the Managing Authority in accordance with
this Law, are separated from the other functions thereof,
including from functions which it fulfils as a beneficiary.
Section 11. Responsible Institution,
Duties and Rights Thereof
(1) The functions of the Responsible Institution shall be
fulfilled by the Ministry of Economics, Ministry of Education and
Science, Ministry of Culture, Ministry of Welfare, Ministry of
Transport, Ministry of Justice, Ministry of Health, Ministry of
Environmental Protection and Regional Development, Ministry of
Agriculture and the State Chancellery.
(2) The Responsible Institution when performing the duties
laid down in Paragraph three of this Section shall be under
supervision of the Minister for Finance. The Minister for Finance
shall implement the functional supervision by mediation of an
authorised official (the Head of the Managing Authority).
(3) The Responsible Institution has the following duties:
1) to participate in the development of planning
documents;
2) in conformity with planning documents to ensure achievement
of the results of a specific objective, including supervision of
achievement of output and result indicators;
3) to develop conditions for implementation of specific
objectives referred to in Section 20, Clause 13 of this Law, by
ensuring approval of such project application to which particular
field of operation of the European Union fund applies, and it can
be applicable to a category of intervention;
4) to develop project application evaluation criteria in
conformity with Article 125(3)(a) and (f) of Regulation No
1303/2013, and also methodology for the application of such
criteria;
5) on the basis of Article 110(2)(a) of Regulation No
1303/2013 to submit the criteria referred to in Clause 4 of this
Paragraph and methodology for the application of the relevant
criteria for approval to the Monitoring Committee;
6) to develop procedures referred to in Article 125(4)(d) of
Regulation No 1303/2013 in conformity with the competence
thereof;
7) in conformity with the competence to provide information to
the Managing Authority and Co-operation Institution which is
essential in the performance of duties of these institutions;
8) in conformity with Article 125(2) (e) of Regulation No
1303/2013 to enter data in the information system of the
management of European Union funds regarding result indicators of
the specific objective, if they are not directly arising from
data entered in the system in conformity with Section 12,
Paragraph three, Clause 15 of this Law;
9) to use the information system of the management of European
Union funds for supervision of achievement and implementation of
specific objectives;
10) to draw up an aid programme or individual aid project and
to submit it for initial assessment to the Ministry of Finance in
accordance with the procedures laid down in the Law On Control of
Aid for Commercial Activity;
11) if it is necessary for more efficient analysis of the
results achieved in the implementation of a specific objectives,
to participate in project verifications carried out by the
Co-operation Institution, including to provide proposals to the
Co-operation Institution regarding the scope and time of the
verification, as well as opinion regarding the detected during
abovementioned verifications;
12) to carry out other duties laid down in this Law.
(4) The Responsible Institution has the right to request and
receive information from the institutions involved in the
management of European Union funds which is necessary for the
implementation of a specific objectives and performance of other
duties of the Responsible Institution.
(5) The institution shall ensure that the functions, which it
fulfils as the Responsible Institution in accordance with this
Law, are separated from the other functions thereof, including
from functions which it fulfil as a beneficiary.
Section 12. Co-operation
Institution, Duties and Rights Thereof
(1) The functions of the Co-operation Institution shall be
fulfilled by the Central Finance and Contracting Agency.
(2) The Co-operation Institution when performing the duties
laid down in Paragraph three of this Section shall be under
subordination of the Minister for Finance. The Minister for
Finance shall implement the functional subordination by mediation
of an authorised official (the Head of the Managing
Authority).
(3) The Co-operation Institution has the following duties:
1) in conformity with the competence to provide information to
the Managing Authority and Responsible Institution which is
essential in the performance of duties of these institutions;
2) to carry out the function referred to in Article 115(1)(c)
of Regulation No 1303/2013, including to provide consultations to
project applicants regarding submission of project
applications;
3) to carry out selection of project applications in
conformity with Article 125(3)(a) and (f) of Regulation No
1303/2013, except selection of project applications for
integrated territorial investments;
4) taking into account the legal status of the project
applicant, to enter into a contract or agreement with a
beneficiary regarding project implementation, by complying with
that laid down in Article 125(3)(c) of Regulation No
1303/2013;
5) to enter into agreement regarding implementation of a
financial instrument and fund of funds;
6) to consult beneficiaries regarding project implementation
in conformity with Article 125(2)(c) of Regulation No
1303/2013;
7) to perform the functions referred to in Article 125(3)(b)
of Regulation No 1303/2013;
8) to carry out the functions referred to in Article 125(2)(e)
(except Section 11, Paragraph two, Clause 8 of this Law), (3)(d)
and (e), (4)(a)(b) and (c) (except Section 10, Paragraph two,
Clause 11 of this Law), and also (5) of Regulation No
1303/2013;
9) to ensure supervision and control of project
implementation, supervision of achievement of project objectives
and output indicators, to analyse problems of the project
implementation and to submit proposals to the Responsible
Institution, Managing Authority and Monitoring Committee
regarding improvement of project implementation;
10) to carry out ex-ante control of procurement documentation
and process of the procurement procedure of the projects on a
sample basis;
11) to develop procedures referred to in Article 125(4)(d) of
Regulation No 1303/2013 in conformity with the competence
thereof;
12) to verify and approve payment request of a beneficiary, to
prepare and submit information to the Certifying Authority
regarding expenditure to be included in the payment application
and to provide other information at the disposal thereof for
drawing up of the payment application and closure of
accounts;
13) to approve expenditure included in the payment request of
the beneficiary, if they are eligible;
14) to provide information to the community, to ensure
publicity and communication in issues related to project
implementation;
15) to develop and maintain the information system of the
management of European Union funds in conformity with Article
125(2)(d) of Regulation No 1303/2013, as well as to perform data
entry in the system, unless electronic data exchange system is
used;
16) to submit a project application for initial assessment to
the Ministry of Finance in the cases laid down in the law or
regulatory enactment referred to in Section 20, Clause 13 of this
Law and in accordance with the procedures laid down in the Law On
Control of Aid for Commercial Activity;
17) to carry out other duties laid down in this Law.
(4) The Co-operation Institution has the following rights:
1) to request and receive information from the institutions
involved in the management of European Union funds, project
applicant and beneficiary that is necessary in order to enter
into a contract or agreement regarding project implementation and
also ensure project supervision and control;
2) to suspend temporarily payments to a beneficiary in
conformity with that laid down in Article 132(2) of Regulation No
1303/2013.
(5) The Central Finance and Contracting Agency shall ensure
that the functions, which it fulfils as the Co-operation
Institution in accordance with this Law, are separated from the
other functions thereof, including from functions which it fulfil
as a beneficiary.
Section 13. Audit Authority, Duties
and Rights Thereof
(1) The functions of the Audit Authority shall be fulfilled by
the Ministry of Finance.
(2) The Audit Authority has the following duties:
1) to carry out initial compliance assessment of the Managing
Authority and Certifying Authority in conformity with the
criteria laid down in Annex XIII to Regulation No 1303/2013;
2) if in performing initial compliance assessment it is
concluded that the Managing Authority or Certifying Authority
fails to comply or only partially complies with the criteria
referred to in Annex XIII to Regulation No 1303/2013, to
determine the actions to be taken by the relevant institution and
time period for rectification of deficiencies;
3) to submit initial compliance assessment report and opinion
of the Managing Authority and Certification Authority to the
Cabinet;
4) to inform the Cabinet, if the Managing Authority or
Certifying Authority fails to carry out actions for rectification
of deficiencies referred to in Clause 2 of this Paragraph;
5) if in performing current audit it is concluded that the
Managing Authority or Certifying Authority fails to comply or
only partially complies with the criteria referred to in Annex
XIII to Regulation No 1303/2013, to determine the actions to be
taken by the relevant institution and time period for
rectification of deficiencies;
6) to inform the Cabinet if there is information at the
disposal thereof that implementation of the European Union funds
may be significantly influenced or the results of the current
audit referred to in Clause 5 of this Paragraph demonstrate that
the Managing Authority or Certifying Authority fails to ensure
the conformity with the criteria referred to in Annex XIII to
Regulation No 1303/2013;
7) to inform the Cabinet if the actions referred to in Clauses
2 and 5 of this Paragraph are implemented and all deficiencies
are rectified;
8) to perform the functions referred to in Article 127 of
Regulation No 1303/2013.
(3) The Audit Authority has the right to request and receive
information, which is necessary for the performance of the duties
thereof, from institutions involved in the management of European
Union funds and beneficiaries.
(4) The Audit Authority has the right to request and obtain
direct access to data in the State information systems in such
amount which is provided for in the laws and regulations
governing the relevant system and which is necessary for the
performance of duties of the Audit Authority.
(5) The Ministry of Finance shall ensure that the functions,
which it fulfils as the Audit Authority in accordance with this
Law, are separated from the other functions thereof, including
function which it performs as a beneficiary.
Section 14. Certifying Authority,
Duties and Rights Thereof
(1) The functions of the Certifying Authority shall be
performed by the Treasury.
(2) The Certifying Authority has the following duties:
1) on the basis of the decision of the Managing Authority
referred to in Section 10, Paragraph three, Clause 3 of this Law
or the results of audit performed by the Audit Authority or under
the responsibility thereof referred to in Article 126(f) of
Regulation No 1303/2013, to suspend further declaration of
expenditure made within the framework of the operational
programme, priority axes, investment priority, specific objective
or project to the European Commission and adjust the amount of
expenditure declared previously;
2) to perform the functions referred to in Article 126 of
Regulation No 1303/2013.
(3) The Certifying Authority has the following rights:
1) to perform verifications of implementation of the European
Union funds that are necessary for approval of reports to be
submitted to the European Commission;
2) to request information from the institutions involved in
the management of European Union funds and beneficiaries that is
necessary for approval of reports to be submitted to the European
Commission and performance of financial records;
3) to adjust the amount of eligible expenditure included in
reports to be submitted to the European Commission in accordance
with the procedures laid down by the Cabinet.
(4) The Treasury shall ensure that the functions, which it
fulfils as the Certifying Authority in accordance with this Law,
are separated from the other functions thereof, including
function which it performs as a beneficiary.
Section 15. Monitoring Committee and
Composition Thereof
(1) The duty of the Monitoring Committee is to monitor the
process of the implementation of the European Union funds and to
carry out other duties laid down in Articles 49 and 110 of
Regulation No 1303/2013.
(2) The composition of the Monitoring Committee, including
institutions and partners the representatives of which may
participate in the work of the Monitoring Committee in an
advisory capacity, shall be approved by the Cabinet by taking
into account the conditions of Article 48(1) of Regulation No
1303/2013. The staff of the Monitoring Committee shall be
approved by the chairman of the Monitoring Committee.
(3) The chairman of the Monitoring Committee shall be the head
of the Managing Authority.
(4) The Managing Authority shall ensure the performance of the
functions of the Monitoring Committee.
(5) The Monitoring Committee may establish one or several
sub-committees for discussion of certain issues.
(6) The types of documents to be examined in the Monitoring
Committee and sub-committees, procedures for lodging and
co-ordination thereof, the procedures for drawing up and course
of the meetings and other issues of internal procedures and
operation of the Monitoring Committee and sub-committee shall be
determined in the regulations of the Monitoring Committee and
sub-committee. The regulations shall be drawn up and approved by
the Monitoring Committee in conformity with Article 47(2) of
Regulation No 1303/2013.
Section 16. Transparency of
Operation of the Monitoring Committee
(1) The Monitoring Committee shall inform the community
regarding the operation thereof and decision taken. Issue of
information shall be restricted in accordance with the Freedom of
Information Law.
(2) The meetings of the Monitoring Committee shall be open.
The procedures for applying for the participation to the meetings
of the Monitoring Committee, restrictions for participation and
procedures for the course of the meetings shall be determined by
the regulations of the Monitoring Committee.
(3) Agenda of the meeting of the Monitoring Committee,
methodology for selection of project applications, project
application evaluation criteria, methodology for application of
project application evaluation criteria and other draft documents
to be examined, minutes of the meeting and approved documents
shall be published on the website - in the document management
system of the Monitoring Committee.
Section 17. Duties and Rights of the
Procurement Monitoring Bureau
(1) The Procurement Monitoring Bureau has the following
duties:
1) to ensure ex-ante control of the public procurement
documentation and process of procurement procedure of the
projects in accordance with the procedures and in the amount laid
down by the Cabinet;
2) to develop methodology for the performance of ex-ante
control of the public procurement documentation and process of
procurement procedure of the projects (hereinafter - the ex-ante
control methodology);
3) to ascertain that the Co-operation Institution caries out
ex-ante control of a public procurement in conformity with the
ex-ante control methodology.
(2) The Procurement Monitoring Bureau has the right to request
information from the institutions involved in the management of
European Union funds and beneficiaries that is necessary to
ensure the performance of the duties referred to in Paragraph one
of this Section.
Section 18. Duties and Rights of the
Beneficiary
(1) The beneficiary has the following duties:
1) to ensure project implementation in accordance with the
laws and regulations of the European Union and the Republic of
Latvia and contract regarding project implementation, if the
beneficiary is a natural person or legal person;
2) to ensure project implementation in accordance with the
laws and regulations of the European Union and the Republic of
Latvia and agreement regarding project implementation, if the
beneficiary is a direct or indirect administrative institution,
derived public person or another State institution;
3) to ensure that funding granted for the project is used in
accordance with the principle of sound financial management, by
taking into account economy, usefulness and efficiency
principles;
4) to ensure that expenditure made within the framework of the
project is directly related to achievement of the project
objectives and conforms to the conditions for use of the funding
granted for project implementation;
5) to inform immediately the Co-operation Institution
regarding any changes and conditions that may negatively affect
the project implementation;
6) to ensure retention and sustainability of the project
results, by taking into account the conditions and time periods
laid down in Article 71 of Regulation No 1303/2013 and regulatory
enactment referred to in Section 20, Clause 13 of this Law;
7) to ensure a separate accounting record for expenditure of
each project or conforming accounting code system in respect of
all transactions related to the project;
8) to provide reports and information regarding project
implementation and ensure access to originals of all documents
related to project implementation and accounting system, as well
as the site of the relevant project implementation for the
representatives of the European Commission, the European
Anti-fraud Bureau, the institutions involved in the management of
European Union funds, Corruption Prevention and Combating Bureau
and Procurement Monitoring Bureau.
(2) The beneficiary has the following rights:
1) to receive funding of the European Union fund, if the
project is implemented in accordance with the laws and
regulations of the European Union and Republic of Latvia and
contract or agreement regarding project implementation by taking
into account the laid down procedures and time periods;
2) to implement the project together with a co-operation
partner by taking into account the conditions laid down in the
regulatory enactment referred to in Section 20, Clauses 2 and 13
of this Law;
3) to receive information necessary for the project
implementation from the institutions involved in the management
of European Union funds and Procurement Monitoring Bureau.
Chapter III
Competence of the Cabinet
Section 19. Approval of the
Compliance of the Managing Authority and Certifying Authority
(1) The Cabinet shall approve the compliance of the Managing
Authority and Certifying Authority with the criteria laid down in
Annex XIII to Regulation No 1303/2013, on the basis of the
evaluation report and opinion referred to in Section 13,
Paragraph two, Clause 3 of this Law.
(2) If the Managing Authority or Certifying Authority fails to
ensure the compliance of the institution with the criteria laid
down in Annex XIII to Regulation No 1303/2013, the Cabinet, by
taking into account the report of the Audit Authority that is
abovementioned in Section 13, Paragraph two, Clause 6 of this
Law, shall repeal the decision to approve compliance of the
relevant institution referred to in Paragraph one of this
Section.
(3) The Ministry of Finance shall inform the European
Commission regarding compliance of the Managing Authority and
Certifying Authority with the criteria and changes laid down in
Annex XIII to Regulation No 1303/2013 in accordance with the
procedures laid down in Article 124 of this Regulation.
Section 20. Competence of the
Cabinet in Provision of Management of European Union Funds
In order to ensure the management of European Union funds, the
Cabinet shall determine:
1) the requirements for the establishment of the management
and control system of European Union funds;
2) the procedures for ensuring drawing up of planning
documents and implementation of the European Union funds by the
institutions involved in the management of European Union funds,
including project application selection, content of the project
application selection regulations, procedures for evaluation of
meeting the exclusion provisions referred to in Section 23 of
this Law by a project applicant, evaluation of contracts and
agreements regarding project implementation, content thereof,
procedures for entering into and amending, and also conditions
for attraction of project co-operation partners;
3) the procedures for planning of resources in the State
budget, and also procedures for examination of payment requests,
performance of payments and drawing up of payment application and
closure of accounts to be submitted to the European
Commission;
4) the procedures for provision and examination of information
regarding application of value added tax within the framework of
projects and taking of a decision to include the value added tax
in the eligible costs of projects;
5) the procedures for ensuring of functions of the Audit
Authority in the management of European Union funds;
6) the provisions and procedures for application of simplified
costs;
7) the procedures for performance of on-the-spot verification
of a project;
8) the procedures for performance of ex-ante control of
procurement documentation and process of the procurement
procedure of the project by the Co-operation Institution on a
sample basis, and the procedures and amount for performance of
ex-ante control of the public procurement documentation and
process of procurement procedure of the project by the
Procurement Monitoring Bureau, and also for developing and
updating of ex-ante control methodology;
9) the procedures for reporting irregularities detected in the
implementation of the European Union funds, for writing-off,
withholding or recovery of expenditure made incorrectly, and also
application of proportional financial correction;
10) the procedures for publication of information regarding
projects and ensuring of compliance with the requirements of
publicity, communication and of visual identity European Union
funds;
11) the procedures for monitoring and evaluation of the
implementation of the European Union funds;
12) the procedures of establishment and use of the information
system of the management of European Union funds, including
electronic data exchange system;
13) an objective of the specific objective, available funding,
requirements for a project applicant, requirements for
co-operation partners (if any is invited) of a project,
conditions for the activities to be supported, eligibility of
costs, and also for unilateral notice of a contract or agreement
regarding project implementation and procedures for implementing
the specific objective of European Union fund indicated in the
operational programme;
14) procedures for implementation of financial instruments and
the funds of funds, available funding, conditions for activities
to be supported and for eligibility of costs;
15) procedures for and cases when the Managing Authority shall
suspend temporarily further declaration of expenditure made
within the framework of operational programme, priority axes,
investment priority, specific objective or project in the
European Commission, and procedures for adjusting of the amount
of eligible expenditure included in reports to be submitted to
the European Commission by the Certifying Authority.
Chapter IV
Project Application Selection and Taking of a Decision on a
Project Application
Section 21. Project Application
Selection
(1) Project application selection may be:
1) open - if an equal competition among applicants of project
applications takes place for the approval of the project
application and granting of the funding of the European Union
fund; or
2) restricted - if the range of project applicants who are
invited to submit project applications is previously known. In
such case all project applications shall be approved and financed
which comply with the project application evaluation criteria, if
none of the exclusion provision referred to in Section 23 of this
Law apply to the project applicant.
(2) Co-operation Institution shall carry out project
application selection in accordance with project application
selection methodology and project application selection
regulations. Project application selection regulations shall be
developed and after co-ordination with the Responsible
Institutions and the Managing Authority approved by the
Co-operation Institution.
(3) In project application selection regulations only those
project application evaluation criteria shall be included which
are approved in conformity with Article 110(2)(a) of Regulation
No 1303/2013 in the Monitoring Committee.
(4) Notification regarding call for open project application
selection and indication to website on which project application
selection regulations are published, and also a notification
regarding extension, discontinuation or termination of project
application selection shall be submitted by the Co-operation
Institution for the publication in the official gazette
Latvijas Vēstnesis.
(5) A project applicant shall draw up and submit a project
application in accordance with the requirements of the project
application selection regulations.
(6) A decision of the Monitoring Committee on approval of
project application evaluation criteria and decision of the
Co-operation Institution on approval of project application
selection regulations may not be contested and appealed.
Section 22. Project Application
Evaluation Committee
The Co-operation Institution shall establish project
application evaluation committee for project application
evaluation in the composition of which shall be at least one
representative from the Responsible Institutions in the
supervision of which is the relevant specific objective and a
representative of the relevant line ministry (where necessary).
The representative of the Managing Authority may participate in
the meeting of the project application evaluation committee in
the capacity of observer.
Section 23. Exclusion Provisions of
Project Applicants
(1) The Co-operation Institution shall refuse a project
application if any of the following case is applicable to a
project applicant who is a natural person or legal person:
1) a project applicant or a person who is a member of the
board of directors or of the council or a general representative
of the project applicant, or a person who is authorised to
represent a project applicant in activities related to a
subsidiary, has been found guilty in any of the following
criminal offences by such punishment prescription of a prosecutor
or a judgement of a court that has entered into effect and is
non-disputable and not subject to appeal:
a) bribetaking, bribery, bribe misappropriation,
intermediation in bribery, unauthorised acceptance of benefit or
commercial bribery,
b) fraud, misappropriation or laundering,
c) evading payment of taxes and payments equivalent
thereto,
d) terrorism, financing of terrorism, invitation to terrorism,
terrorism threats or recruiting and training of a person for
performance of terror acts;
2) a project applicant, by such a decision of a competent
authority or a judgment of a court which has entered into effect
and has become non-disputable and not subject to appeal, has been
found guilty of an infringement of employment rights which
means
a) employment of such one or more citizens or nationals of
countries, which are not citizens or nationals of the European
Union Member States, if they reside in the territory of the
European Union Member States illegally;
b) employment of one person without entering into a written
employment contract, not submitting an informative declaration
regarding employees in respect of such person within a time
period laid down in the laws and regulations, which is to be
submitted regarding persons who commence work;
3) a project applicant, by such a decision of a competent
authority or a judgment of a court which has entered into effect
and has become non-disputable and not subject to appeal, has been
found guilty of infringement of competition rights manifested as
a vertical agreement aimed at restricting the opportunity of a
purchaser to determine the resale price, or horizontal cartel
agreement, except for the case when the relevant authority, upon
determining infringement of competition rights, has released the
candidate or tenderer from a fine or reduced fine within the
framework of the co-operation leniency programme;
4) insolvency proceedings have been declared for a project
applicant, legal protection proceedings are enforced by a court
judgment, extrajudicial legal protection process is enforced by
the court decision, the economic activity of a project applicant
has been suspended or discontinued, legal proceedings have been
initiated regarding the bankruptcy of a project applicant or a
project applicant is wound up;
5) if the decision of the Co-operation Institution referred to
in Section 27 of this Law on the prohibition for participation in
the project application selection has come into effect.
(2) The Co-operation Institution shall not exclude a project
applicant from participation in project application selection, if
from the day, when the following cannot be contested and
appealed:
1) the sentence, prosecutor's injunction regarding punishment
or the decision taken by other competent institution in relation
to the infringements referred to in this Section, Paragraph one,
Clauses 1 and Clause 2, Sub-paragraph "a", three years have
passed;
2) the sentence or the decision taken by other competent
institution in relation to the infringements referred to in this
Section, Paragraph one, Clause 2, Sub-paragraph "b" and Clause 3,
12 months have passed.
Section 24. Types of Decisions of
the Managing Authority and the Co-operation Institution
(1) The Managing Authority or the Co-operation Institution
shall issue an administrative act or take an administrative
decision according to the legal status of the project
applicant.
(2) If a project applicant is a natural or legal person, a
decision of the Managing Authority and Co-operation Institution
is an administrative act.
(3) If a project applicant is a direct or indirect
administrative institution, derived public person or another
State institution, a decision of the Managing Authority and
Co-operation Institution is an administrative decision.
(4) The administrative decision referred to in Paragraph three
of this Section shall be issued in writing, and it shall have the
following parts:
1) the name and address of the Managing Authority or the
Co-operation Institution;
2) addressee - a project applicant;
3) determination of facts;
4) justification of the administrative decision;
5) a separate list of the legal norms applied (indicating also
section, paragraph, clause or sub-clause of the regulatory
enactment);
6) the rights assigned to the addressee and the rights
rejected;
7) conditions (where necessary);
8) the procedures for contesting a decision of the
Co-operation Institution.
Section 25. Approval of a Project
Application, Approval with a Condition or Refusal in Open Project
Application Selection
(1) The Co-operation Institution on the basis of the opinion
provided by the project application evaluation committee shall
take a decision to approve a project application, approve with a
condition or to refuse.
(2) A decision to approve a project application shall be
taken, if all of the following conditions are met:
1) none of the exclusion provisions referred to in Section 23
of this Law is applicable to a project applicant;
2) a project application complies with project application
evaluation criteria;
3) funding is available for the project implementation within
the framework of the project application selection round of a
specific objective.
(3) A decision to refuse a project application shall be taken,
if at least one of the following conditions has set in:
1) at least one of the exclusion provisions referred to in
Section 23 of this Law is applicable to a project applicant;
2) a project application fails to comply with project
application evaluation criteria and rectification of deficiency
in accordance with Paragraph four of this Section can affect a
project application in fact;
3) funding is not available for the project implementation
within the framework of project application selection round of
specific objective.
(4) A decision to approve a project application with a
condition shall be taken if a project applicant must carry out
the activities laid down by the Co-operation Institution in order
the project application will completely comply with the project
application evaluation criteria and project could be implemented
appropriately. Conditions may be included in the decision and
performance thereof shall be controlled by taking into account
the project application selection regulations. If any of the
conditions laid down in the decision is not fulfilled or is not
fulfilled within the time period laid down in the decision, a
project application shall be regarded as refused.
(5) If a project application is submitted after the end date
for submission of project application, it shall not be evaluated.
The Co-operation Institution shall inform a project applicant
thereon. If the project application is refused due to the reasons
referred to in this Paragraph and the project applicant appeals
the refusal to the court, the adjudication of the Administrative
District Court regarding the relevant issue may not be
appealed.
Section 26. Approval of a Project
Application, Approval with a Condition or Refusal in Restricted
Project Application Selection
(1) The Co-operation Institution on the basis of the opinion
of the project application evaluation committee shall take a
decision to approve a project application, approve with a
condition or to refuse.
(2) A decision to approve a project application shall be
taken, if all of the following conditions are met:
1) none of the exclusion provisions referred to in Section 23
of this Law is applicable to a project applicant;
2) a project application complies with project application
evaluation criteria.
(3) A decision to refuse a project application shall be taken,
if at least one of the following conditions has set in:
1) a project applicant is not invited to submit a project
application;
2) at least one of the exclusion provisions referred to in
Section 23 of this Law is applicable to a project applicant.
(4) A decision to approve a project application with a
condition shall be taken if a project applicant must carry out
the activities laid down by the Co-operation Institution in order
the project application will completely comply with the project
application evaluation criteria and project could be implemented
appropriately. Conditions may be included in the decision and
performance thereof shall be controlled by taking into account
the project application selection regulations.
(5) If a project applicant fails to fulfil the conditions
included in the decision to approve a project application with a
condition or fails to fulfil them within the time period laid
down in the decision, the Co-operation Institution shall
repeatedly take a decision to approve a project application with
a conditions in conformity with Paragraph four of this Section.
If any of the conditions laid down in the repeated decision is
not fulfilled or is not fulfilled with the time period laid down
in the decision, a project application shall be regarded as
refused.
(6) The Cabinet shall laid down the procedures for evaluation
and approval of the application of a major project (within the
meaning of Article 100 of Regulation No 1303/2013).
Section 27. Decision to Prohibit to
Participate Temporarily in Project Application Selection
The Co-operation Institution is entitled to take a decision to
determine prohibition for a natural or legal person or a person
who is a member of the board of directors or of the council or a
general representative of the relevant legal person, or a person
who is authorised to represent a project applicant in activities
related to a subsidiary, to participate in project application
selection for a time period which does not exceed three years
from the day of coming into effect of the decision if such
person:
1) has knowingly provided false information that is essential
for the evaluation of a project application;
2) when implementing a project within the meaning of this Law,
has knowingly provided false information to the Co-operation
Institution or acted otherwise ill-intentioned in relation to the
project implementation that has served as the basis for deduction
or recovery of expenditure made inappropriately and the
Co-operation Institution has used the right provided for in the
regulatory enactment referred to in Section 20, Clause 13 of this
Law to withdraw unilaterally from the contract regarding a
project implementation.
Section 28. Contesting and Appeal of
a Decision of the Co-operation Institution and the Co-operation
Institution
(1) A project applicant may contest a decision of the
Co-operation Institution referred to in Sections 25, 26 and 27 of
this Law to the Managing Authority. The administrative act issued
by the Managing Authority regarding contested decision of the
Co-operation Institution may be appealed by submitting an
application to the relevant courthouse of the Administrative
District Court. The administrative decision taken by the Managing
Authority regarding contested decision of the Co-operation
Institution may not be appealed.
(2) An opinion of the Co-operation Institution regarding the
fulfilment of the condition included in the decision referred to
in Section 25, Paragraph four or Section 26, Paragraph four or
five of this Law may be contested and appealed in accordance with
the same procedures and within the same time periods as a
decision regarding fulfilment of the condition of which the
opinion is drawn up. The opinion on fulfilment of the condition
included in the decision may be contested and appealed separately
from the decision in which the condition is included.
(3) Contesting or appeal of a decision shall not suspend
operation thereof.
(4) The head of the Managing Authority shall take a decision
on the basis of the opinion of the application examination
committee.
(5)The Managing Authority shall establish application
examination committee in the composition of which shall be at
least one representative from the Responsible Institution in the
supervision of which is the relevant specific objective and a
representative of the relevant line ministry (where necessary),
if they have not been the member of the relevant project
application evaluation committee.
Section 29. Time Period for Taking
of a Decision
(1) The Co-operation Institution shall take a decision to
approve a project application, to approve with the condition or
to refuse it within three months after the end date of the
submission of the project application, unless other time period
is laid down in the law or regulation regarding implementation of
a specific objective.
(2) If time period laid down in Paragraph one of this Section
cannot be complied with due to objective reasons, the
Co-operation Institution may extend it for a time period that is
not longer than six months from the end date of the submission of
the project application, by notifying a project applicant
thereon. A decision to extend a time period may be contested, but
not appealed.
Section 30. Adjusting of Project
Application
A project application after submission thereof until taking of
a decision to approve it, to approve with a condition or to
refuse it cannot be adjusted.
Chapter V
Procedures for Settlement of Disputes Regarding Implementation of
a European Union Fund Project
Section 31. Procedures for
Settlement of Disputes, if a Beneficiary is a Natural or Legal
Person
If a beneficiary is a natural or legal person, disputes
referring to performance of a contract regarding project
implementation, including disbursement of financial resources
granted, continuation of disbursement or recovery thereof, shall
be settled in accordance with the civil legal procedures.
Documents which are drawn up and taken for performance of the
activities referred to in the first sentence of this Section (for
example, decisions, opinions, warnings, contract) shall not be
examined in accordance with the procedures of administrative
proceedings.
Section 32. Procedures for
Settlement of Disputes, if a Beneficiary is a Direct or Indirect
Administrative Institution, Derived Public Person or Other State
Institution
(1) If any disagreement arises between beneficiary, who is a
direct or indirect administrative institution, derived public
person or other State institution, and Co-operation Institution
regarding the decision to disburse granted funding, to continue
to disburse or taken within the framework of the agreement or
other decision, and agreement is not reached through
negotiations, the beneficiary may appeal it in the Managing
Authority.
(2) The Managing Authority shall evaluate an application of
the beneficiary referred to in Paragraph one of this Section and
take one of the following decision within a month after receipt
of an application:
1) to leave a decision of the Co-operation Institution
non-amended;
2) to revoke a decision of the Co-operation Institution
entirely or in any part thereof and, where appropriate, to assign
the Co-operation Institution to examine objections of the
beneficiary repeatedly, by taking into account the indications of
the Managing Authority;
3) to issue other decision in terms of content.
(3) If a time period laid down in Paragraph two of this
Section cannot be complied with, the Managing Authority may
extend it for a time period that is not longer than four months
from the day of receipt the application, by notifying an
applicant thereon.
(4) Information that is required to take an administrative
decision referred to in Paragraph two of this Section, the
Managing Authority shall acquire, by applying the procedures for
co-operations of institutions and acquiring of information in the
administrative proceedings in the institution.
(5) Administrative decision taken by the Managing Authority
referred to in Paragraph two of this Section may not be
appealed.
Section 33. State Fee in Applying to
the Court
The Co-operation Institution shall not pay a State fee in
applying to a court of general jurisdiction regarding a
contractual dispute.
Chapter VI
Final Provisions
Section 34. Rights to Become
Acquainted with a Project File
(1) An applicant of a project has the right to get acquainted
with the project file submitted thereby at any stage of the
process, by taking into account the laid down in Paragraph two of
this Section.
(2) An applicant of a project is entitled to get acquainted
with the evaluation materials (including expert opinions, minutes
and decision of the evaluation committee) of the project
application submitted thereby only after a decision to approve,
to approve with a condition or to reject the application of the
project has come into effect.
(3) The Co-operation Institution shall provide the information
referred to in Paragraph two of this Section within 10 working
days after the receipt of the request or within five working days
after the receipt of the request shall invite an applicant of a
project to get acquainted with the requested information on time
mutually acceptable for the institution and applicant.
Section 35. Freedom of
Information
(1) A file of a project of a natural or legal person shall be
restricted access information until the time when a decision to
approve an application or refuse it or an opinion regarding
performance of the conditions included in the decision has come
into effect. The file of the project shall be available in the
amount and in accordance with the procedures laid down in the
Freedom of Information Law and Article 115(2) of and Annex XII to
Regulation No 1303/2013 after coming into effect of the
abovementioned decision or opinion.
(2) A project file of a direct or indirect administrative
institution, derived public person or another State institution
shall be generally accessible information, except for the summary
of the project budget, including a plan for indicative project
costs. Information regarding the abovementioned project shall be
available in the amount and in accordance with the procedures
laid down in the Freedom of Information Law and Article 115(2) of
and Annex XII to Regulation No 1303/2013 after the end date for
submission of the project application. The information referred
to in Section 34, Paragraph two of this Law in relation to
evaluation of the project application shall be available after
the decision to approve the project application, to approve it
with a condition or to reject it has come into effect.
Section 36. Eligibility Time Period
of Costs Incurred in the Project
Costs incurred in the project may be regarded as eligible, if
they have incurred and paid after 1 January 2014 and another time
period is not laid down in the regulatory enactment referred to
in Section 20, Clause 13 of this Law.
Transitional Provisions
1. By 1 October 2014 the Cabinet shall issue the regulations
referred to in Section 8, Section 20, Clauses 1, 2, 3, 4 and 15
and Section 26, Paragraph six of this Law.
2. By 1 December 2014 the Cabinet shall issue the regulations
referred to in Section 20, Clauses 5 and 10 of this Law.
3. By 1 January 2015 the Cabinet shall issue the regulations
referred to in Section 20, Clauses 7, 8, 11 and 12 of this
Law.
4. By 1 March 2015 the Cabinet shall issue the regulations
referred to in Section 20, Clause 9 of this Law.
5. By 1 July 2015 the Cabinet shall issue the regulations
referred to in Section 20, Clause 6 of this Law.
6. By 31 December 2017 the Cabinet shall issue the regulations
referred to in Section 20, Clauses 13 and 14 of this Law.
Informative Reference to Directive
of the European Union
The Directive 2009/52/EC of the European Parliament and of the
Council of 18 June 2009 providing for minimum standards on
sanctions and measures against employers of illegally staying
third-country nationals.
This Law shall come into force on the next day following the
proclamation thereof.
This Law has been adopted by the Saeima on 3 July
2014.
President A.Bērziņš
Rīga, 10 July 2014
1 The Parliament of the Republic of
Latvia
Translation © 2016 Valsts valodas centrs (State
Language Centre)