Act on Administration of State Property

(Act No 121/2001 Coll. amending and supplementing the Act of the National Council of the Slovak Republic No. 278/1993 Coll. on Administration of State Property, as amended)

The amendment to the Act on Administration of State Property contains more detailed specification of provisions of the Act on Administration of State Property by specification of rights and obligations of a property administrator in connection with disposal of the state property.

The amendment defines a new term  "temporary redundant state property". The property, which is not temporary used by the property administrator for fulfilment of its functions within the scope of its activities or in connection therewith shall be deemed as the temporary redundant state property. The property administrator shall be obliged to dispose of such property, in an expedient manner and with maximum efficiency in accordance with the Act on Administration of State Property.

In connection with transfers of  the administration of state receivables to the administration of a state budgetary organisation, the amendment stipulates that such transfer of administration has to be in any case free of charge.

At the same time, the amendment specifies in more details the cases, when the property administrator of state receivables may enter into an agreement on instalments  or deferment of payment with a debtor, or release from enforcement of state receivables. The statutory body of the property administrator shall decide on a permanent release from enforcement of state receivables. A consent of the founder with the decision of the statutory body of the property administrator is required only in case of the permanent release from enforcement of state receivables exceeding SKK 50,000 (prior to the amendment the limit was SKK 10,000). The debtor shall not be notified on the permanent release from enforcement of state receivables.

The amendment also stipulates that if a debtor does not satisfy a receivable, the  enforcement of which was permanently released by the property administrator, within three years from issuance of the decision on the permanent release from enforcement of the state receivable, the receivable shall cease to exist.

The amendment further stipulates that in case of any dispute relating to the administration of state property, such dispute shall be resolved by the founder and trustor of parties to the dispute, provided that at least one part to the dispute is a state owned company. If no agreement is reached in the dispute about the administration of state property, the dispute shall be decided by the Government of the Slovak Republic upon a proposal of the Ministry of Finance of the Slovak Republic.

The amendment also states exceptions from the obligation of the property administrator to offer any redundant state property to state budgetary organisations and state contributory organisations. In addition to the above, the amendment specifies and extends the number of cases in which the property administrator is not obliged to perform a special public offer.

Moreover, the amendment also regulates terms and conditions of lease of state property and its borrowing and stipulates restrictions of usage of state property as a contribution to the equity of a legal entity or as a contribution at the establishment of a legal entity.

New provisions of Sec. 14a specify the powers of the Ministry of Finance of the Slovak Republic and Financial Controlling Authorities in the field of state property administration.

The Amendment is in force from 1 May 2001.

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