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Act on State Support

(Act No. 434/2001 Coll. amending and supplementing the Act No. 231/1999 Coll. on State Support)

The main purpose of this amendment was to achieve complete compatibility of the Act on State Support with 'acquis communautaire'.

The Act on state support specifies areas and purposes, for which the state support can be provided. The amendment extends the scope of support which is not considered to be the state support.

In accordance with requirements of the European Commission, the amendment specifies in more details mainly a regulation concerning the provision of state support to vulnerable sectors, i.e. car industry, ship industry and steel industry. At the same time, the amendment newly regulates provisions related to the provision of state support for development of regions, by which provisions related to the provision of state support for development of districts have been substituted.

In order to achieve complete compatibility with 'acquis communautaire' and in accordance with requirements of the European Commission, a regulation related to the provision of state support for development of employment, as well as the state support for education of employees, has been newly added to the Act.

The state support for education of employees can be provided for specific (special) education and general education. The specific education is defined as education of an employee providing qualification, which can be used only with the entrepreneur and is not applicable or is only partially applicable on the labour market. The general education is defined as education of an employee providing generally usable qualification improving the application of the employee on the labour market.

In accordance with the amendment to the Act on state support, state support for development of employment may be provided to an entrepreneur for creation or maintenance of job positions.

Apart from the above stated, the amendment introduces other duties for providers of state support, particularly in connection with documents' keeping, provision of information and rules for submitting documents related to the provided state support to the Office of State Support.

This Act is in force from 1 November 2001.

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