of 4th July 2001

The National Council of the Slovak Republic has enacted the following Act:

Art.1

Basic Provisions

Section 1

(1) The higher territorial unit¹⁾ shall mean any self-government region.

(2) The self-government region shall mean any independent territorial self-government and administrative unit of the Slovak Republic.²⁾

(3) The following self-government regions shall be established:

a. the Self-government Region of Bratislava with the seat in Bratislava;

b. the Self-government Region of Trnava with the seat in Trnava;

c. the Self-government Region of Trencin with the seat in Trencin;

d. the Self-government Region of Nitra with the seat in Nitra;

e. the Self-government Region of Zilina with the seat in Zilina;

f. the Self-government Region of Banska Bystrica with the seat in Banska Bystrica;

g. the Self-government Region of Kosice with the seat in Kosice;

h. the Self-government Region of Presov with the seat in Presov.

(4) A territorial district of a self-government region shall comply with a territorial district of a region.³⁾ A territorial district of a self-government region can be changed only by a law.

(5) A self-government region is a legal person that, under the conditions laid down by a law, manages its own property and revenues independently, ensures and protects rights and interests of its inhabitants.

(6) A self-government region shall keep own symbols that may be used for the purposes of self-government. The symbols of a self-government region are the coat-of-arms, flag and seal.

(7) In matters of territorial self-government, obligations and limitations to a self-government region can be imposed only by a law and an international treaty.⁴⁾

Section 2

The authorities of a self-government region are:

a. the Council of a self-government region (hereinafter referred to as the“Council”);

b. the head of a self-government region (hereinafter referred to as the “head”).

Section 3

1. The inhabitant of a self-government region shall mean any person permanently residing⁵⁾ in a municipality therein.

(2) An inhabitant of a self-government region shall participate in its self-government. He or she shall be particularly entitled:

a. to elect the Council and to be elected to the Council;

b. to elect the head and to be elected as the head;

c. to vote in referendum of a self-government region under the conditions laid down herein (hereinafter the “referendum”);

500. to take part in the Council’s meetings;

5. to submit own incitements, complaints and other filings to the head, Council and authorities established by them.

(3) Except the rights pursuant to section 2 (a) to (c), any person

a. having real estate,

b. registered for temporary residence,⁶⁾

c. authorised as a foreigner for long-term residence⁷⁾

a. ensure setting and fulfilment of a program for social, economic and cultural development within the territory of a self-government region;

b. carry out planning activities relating to the territory of a self-government region;

c. provide, discus and approve territorial and planning documentation of a self- government region and territorial plans of regions;

d. use efficiently local human, natural and other sources;

e. carry out own investment activity and business activity to ensure needs of inhabitants of a self-government region and its development;

f. found, establish, revoke and supervise its budgetary and contributory organisations and other legal persons pursuant to special regulations;

g. participate in formation and protection of the environment;

h. create conditions for optimum arrangement of mutual relations between settlement units and other elements of the territory;

i. create conditions for the development of education, particularly in secondary schools, and the development of further education;

j. create conditions for the formation, presentation and development of cultural values and cultural activities and protect the monuments fund;

k. co-ordinate the development of tourism;

l. co-ordinate the development of physical education and care of children and youth;

m. co-operate with municipalities in creation of their social and economic development programmes;

n. participate in problem solving related to other municipalities in the territory of a self-government region;

o. develop co-operation with territorial units and authorities of other states;

p. perform other activities laid down by special laws.

Section 5

International Co-operation

(1) Within the scope of own activities, a self-government region may co-operate with territorial and administrative units or authorities of other states that carry out regional functions. A self-government unit shall have the right to become a member of an international association of territorial units or territorial authorities.

(2) The co-operation shall only be based on a co-operation agreement shall contain:

a. the names and seats of contracting parties;

b. the subject matter of a contract (co-operation);

c. the time determination for a contract’s duration.

(3) If a co-operation agreement requires an appointment of a special authority, such agreement shall state so, as well as the way of the appointment. Such authority must be of private law nature.

(4) A co-operation agreement shall be concluded in written form, beforehand approved by qualified majority of all deputies of the Council and by a territorial unit or authority of other state.

(5) A co-operation agreement or membership in international association of territorial units or territorial authorities shall not be contrary to the Constitution of the Slovak Republic, constitutional laws, laws and international treaties binding for the Slovak Republic and public interest.

(6) A self-government region shall send a copy of a concluded co-operation agreement or proof of membership in international association of territorial units or territorial authorities to the regional office in which territorial district it is seated. A regional office shall record concluded co-operation agreements and membership of self-government regions in international associations of territorial units or territorial authorities.

(7) If the requirements laid down by paragraphs 2,3,4 and 5 are not fulfilled, a regional office can make a motion to a court to ordain the obligation to terminate a co-operation agreement or membership in international associations of territorial units or territorial authorities.

Section 6

(1) Some tasks of state administration may be transferred to a self-government region.

(2) In the case pursuant to paragraph 1, the state shall provide a self-government region with essential financial and other material resources.

Section 7

Relation to state authorities, municipalities and other legal persons

(1) While performing its activities, a self-government region shall co-operate with state authorities, other self-government regions, municipalities and other legal persons.

(2) A self-government region shall submit proposed symbols (section 1(6)) to the Ministry of Interior of the Slovak Republic for registration in the Heraldry Register of the Slovak Republic.

(3) State authorities shall provide a self-government region with essential data from particular registers within the scope laid down by special laws.⁸⁾ A self-government region shall provide state authorities, municipalities and other legal persons with data needed for their activity within the scope laid down by special laws.

(4) State authorities shall support a co-operation between a self-government region and territorial and administrative units or authorities or offices of other states that fulfil regional functions, keep in mind to inform a self-government region about possibilities of such co-operation.

(5) State authorities and a self-government region shall create conditions for further education of heads, deputies of the Council and employees of a self-government region.

(6) Where a program of the Council’s meetings concern tasks of local state administration, a principal of competent regional office shall participate in these meetings.

(7) A self-government region shall give a notice to authorities of local state administration and municipality in the case of deficiencies relating to their activity which it finds out while fulfilling own tasks.

(8) A municipality shall provide a self-government region for the reason of fulfilling its tasks with registered data.

(9) A municipality with the seat of self-government region shall participate in the provision of place for its authorities.

(10) State authorities shall supervise and control the activity of a self-government region within the scope laid down by law.⁹⁾

Section 8

Generally Binding Regulations

(1) A self-government region may issue generally binding regulations (hereinafter referred to as the “regulation”) relating to affairs of territorial self-government; a regulation shall not be contrary to the Constitution of the Slovak Republic, constitutional laws, international treaties approved by the National Council of the Slovak Republic and ratified and declared pursuant to provisions laid down by law, laws and governmental regulations.¹⁰⁾

(2) Where a self-government region fulfils tasks of state administration, it may issue a regulation just based on authorisation of law and within its scope. Such regulation shall not be contrary to the Constitution of the Slovak Republic, constitutional laws, international treaties approved by the National Council of the Slovak Republic and ratified and declared pursuant to provisions laid down by law, laws, governmental regulations, generally binding rules of ministries and other central bodies of state administration.

(3) If the Government of the Slovak Republic considers that a regulation approved pursuant to paragraphs 1 and 2 is contrary to national interests or interests of other higher territorial units or municipalities, it will return it to a Council by sending to a principal within the period stated for signing. If a Council re-approves the regulation according to objections of the Government, it entries into effect within the period of fifteen (15) days. In the opposite case, the regulation loses effect if a regional court rules so based on the Government’s proposal.

(4) A regulation shall be declared by posting of its full version on a official board of a self-government region for at least 30 days; it shall enter into effect on the thirtieth day since the posting if it does state later date of effect. If it is justified by urgent public interest, a regulation may contain provisions on earlier beginning of its effect, however, the earliest time shall be the day of declaration.

(5) The declaration of a regulation pursuant to paragraph 4 shall underline its validity; furthermore, a regulation shall also be publicised in a manner that is locally usual.

(6) A self-government region shall immediately and free of charge send one copy of a regulation to each municipality in its territory and to the regional office. A municipality shall ensure that a regulation is accessible to each interested person.

Section 9

Financing of a Self-government Region

(1) The basis of financial management of a self-government region shall be a budget drawn for the period of a calendar year.

(2) A self-government region shall finance its needs mainly from own resources as well as from state subsidies. The resources of a self-government region within the scope laid down by special rules shall be:

a. the revenues from property of a self-government region and property of the state relinquished to a self-government region for use;

b. the revenues from local taxes and fees;

c. the earnings from fines;

d. the earnings from voluntary purses, voluntary contributions and donations of legal persons and natural persons;

e. other revenues.

(3) The expenses of a self-government region shall be:

a. the expenses relating to execution of self-government functions;

b. the expenses relating to administration of own property as well as property relinquished to a self-government region for use;

c. expenses relating to formation and fulfilment of social and economic development program of a self-government region;

d. other expenses pursuant to special rules.

(4) A proposal of budget of a self-government region shall be available to the public at least 15 days prior to its approval to enable inhabitants of a self-government region as well as persons pursuant to section 3(3) to express their opinion; it shall also apply to a proposal of financial statement of a self-government region.

(5) A self-government region shall keep accounting pursuant to a special law.¹¹⁾ An auditor¹²⁾ shall review an annual accounting statement of a self-government region.

(6) The status of a self-government region’s budget, its preparation and content, rules of budgetary management, formation and use of non-budgetary sources, manner of financial settlement between self-government regions, relations to state budget and budgets of municipalities are laid down by a special law.¹³⁾

Section 10

Property of a Self-government Region

(1) The property of a self-government region shall serve to fulfil tasks of a self-government region.

(2) The property of a self-government region and dispose of the property is regulated by a special law.

Section 11

The Council

(1) A Council is a board consisting of deputies of a self-government region elected on the basis of direct suffrage. The system for the election of deputies is laid down by a special law.¹⁴⁾ A Council shall determine a number of deputies for overall electoral period with ratio 12,000 to 15,000 inhabitants to one deputy and determine an election district pursuant to a special law.¹⁴⁾ The Council’s term shall expire when deputies of new elected Council take an oath.

(2) A Council shall exclusively decide on basic issues of a self-government region, it particularly

a. shall approve regulations;

b. shall determine the principles of management of self-government region’s property and property relinquished to a self-government region for use;

c. shall approve social, economic and cultural development program for a self- government region, regional developmental plans and programs as well as territorial planing documentation of a self-government region and territorial plans of regions;

d. shall approve a budget of a self-government region and its amendments, control withdrawals from the budget and approve a final account of a self- government region;

e. shall decide on taking of credit or loan for a self-government region;

f. shall decide on the declaration of referendum;

g. shall found, establish, revoke and control legal persons of a self-government region and appoint and recall their heads (directors) providing a special law does not lay down otherwise, shall approve investment of a self-government region in legal person;

h. shall approve agreements pursuant to section 5, twining of resources and activities of a self-government region as well as membership of a self- government region in associations;

i. based on the proposal of a head, shall elect and recall a deputy head of a self- government region (hereinafter referred to as the “deputy head”) among deputies, determine the competence that a deputy head is not authorised to exercise during the absence of a head and determine proper recompense to a deputy head who is disengaged from its office for long-term period;

j. shall establish committees and other bodies of a Council, elect and recall their chairmen and other members;

k. shall elect for the period of six years, and shall recall the chief controller of a self-government region (hereinafter referred to as the “chief controller”) and determine his or her salary and bonus;

l. shall determine remuneration for deputies (section 12 (6));

m. shall determine remuneration for members of committees who are not deputies;

n. shall establish an office of a self-government region (hereinafter referred to as the “office”) and determine its organisational structure;

o. shall approve the rules of procedure of a Council.

(3) A Council shall meet according to need, however, at least once in two months; a head shall arrange and chair meetings. If at least one third of deputies requires a Council’ s meeting, a head must call the meeting within seven days since a request for a meeting is delivered. A proposal of meeting’s agenda shall be announced to deputies in written form, ten days prior to a meeting at the latest, and if a Council’s meeting is called based on a request of at least one third of deputies, it must be announced three days prior to a meeting at the latest; at the same time, it shall be published in proper manner so it can be available to the public.

(4) A Council shall always deliberate in assembly. It shall deliberate and make decisions if the qualified majority of all deputies is present. The consent of the qualified majority of present deputies shall be required to adopt a Council’ s resolution. The consent of the two-thirds majority of votes of all deputies shall be required to adopt a regulation. If a Council is not qualified to deliberate and make decisions, a head shall call a new meeting within 14 days.

(5) A Council’ s meeting can take place even if a head does not call it pursuant to paragraph 3 or 4; in such case, a deputy head or other deputy shall call a meeting.

(6) If a Council established an advisory body, it requests its standpoint prior to a decision relating to the matter for which the advisory body was established.

(7) A Council’ s meeting shall be public provided a Council does not declare it non-public. A Council shall always declare a meeting non-public if the agenda concerns information or matters protected by special laws.¹⁵⁾

(8) In case the President of the Slovak Republic, a deputy of the National Council of the Slovak Republic, a member of the Government of the Slovak Republic or a person authorised by the Government, a representative of other state authority, a mayor of a municipality belonging to the territory of a self-government region asks to speak, they are allowed to do so; it shall also apply to other person.

(9) A regulation and resolution of a Council shall be signed by a head within three days since their approval at the latest.

(10) The rules of procedure of a Council shall lay down the details on deliberation of a Council.

Deputies

Section 12

(1) A deputy shall be primarily entitled:

a. to submit proposals to a Council and its bodies;

b. to interpellate a head in matters concerning the execution of his activity;

c. to request an explication from heads (directors) of legal persons established or founded by a self-government region in matters concerning their activity;

d. to request information and explications from natural and legal persons carrying out entrepreneur activity in the territory of a self-government region in matters concerning their enterprenuership;

e. to participate in controls, checks, disposal of complaints and other petitions that are carried out by a Council and its bodies;

f. to request explications from state authorities in matters necessary to perform properly a Council’s office.

(2) A deputy shall be primarily obliged:

a. to take an oath on the first session of a Council in which he or she participates;

b. to defend interests of a self-government region and its inhabitants;

c. to participate in sessions of a Council and its bodies to which he or she was elected;

d. to inform about his activity and an activity of a Council based on the request of voters.

(3) A deputy shall take an oath which says: “I promise to my honour and conscience to fulfil my duties properly, to protect interests of a self-government region, to observe the Constitution of the Slovak Republic, constitutional laws, laws and other generally binding legal rules and to apply them while discharging my office of a deputy according to my best consciousness and conscience.”

(4) The deputies office shall be, as a rule, carried out without interruption of employment relationship or similar relation. A deputy shall not be in disadvantage regarding his rights or claims resulting from employment relationship or similar relation for the reason of discharging his office. An employer shall enable his employee to discharge the office of a deputy pursuant to special rules. A deputy who is disengaged from employment for a long term period to discharge the office of a deputy shall be entitled to remuneration from a self-government region instead of a wage or other remuneration in employment. A self-government region shall reimburse compensation of wage, salary or other remuneration for work to an employer for short-term disengagement of a deputy.

(5) A deputy shall be entitled to compensation of expenses pursuant to a special law¹⁶⁾ which rise in connection with the discharge of his/her office.

(6) A deputy who is not disengaged for a long-term period to discharge his/her office can receive remuneration for the discharge of his/her office.

Section 13

(1) The office of a deputy is incompatible with the office carried out by

a. a head;

b. a member of the body of legal person established or founded by a self- government region;

c. an employee of a self-government region or

d. special law.¹⁷⁾

(2) The mandate of a deputy shall cease by

a. the expiration of electoral period;

b. the refusal of the oath or by taking the oath with reservation;

c. the relinquishment of the mandate;

d. the effective conviction of a deliberate crime or effective conviction of a crime if the execution of infamous punishment was not suspended;

e. the deprivation of legal capacity or its limitation;

f. the termination of permanent residence in a municipality within the territory of a self-government region or

g. death.

3) A deputy shall resign from the mandate in written form, and the resignation shall become effective by the delivery to an office. The resignation cannot be withdrawn.

Section 14

First meeting of new elected Council shall be called by a present head in a way that would enable to meet within 30 days since the declaration of election results. A present head shall chair first meeting until a new head takes an oath.

Section 15

Referendum

(1) A Council shall declare a referendum on important issues concerning the execution of self-government of a self-government region if it decides so or if at least 30 per cent of eligible voters request so based on petion.¹⁴⁾

(2) A Council shall declare a referendum on the revocation of a head if:

a. the absence or incapacity of a head to execute the office lasts for more than six months;

b. a head seriously and repeatedly neglects his or her duties, which results in serious faults in administration of a self-government region, or

c. at least 30 percent of eligible voters requests so based on petion.¹⁴⁾

(3) A Council shall declare a referendum pursuant to paragraphs 1 and 2 letter a) in such manner that it can take place within 90 days since the approval of the resolution on declaration of a referendum.

(4) If a petition complies with requirements laid down by a special law,¹⁸⁾ a Council shall declare a referendum in such manner that it can take place within 90 days since the delivery of the petition to a self-government region. At least three deputies, ordained by a Council, who can not be members of a petition committee, shall check the petition pursuant to paragraphs 1 and 2 letter c).

(5) Results of a referendum are effective if at least half of eligible voters¹⁴⁾ participated, and if the qualified majority of valid votes of participants in referendum approved a decision.

(6) The earliest time when a referendum on the same matter can be repeated is 24 months after it was conducted;, it shall not apply to a referendum on the revocation of a head.

(7) A Council shall declare results of a referendum within three days since the delivery of minutes on results of a referendum.

(8) A regulation of a Council shall laid down the details on the organisation of referendum.

Head

Section 16

(1) A head shall be elected by inhabitants of a self-government region (section 3 para.1) on the basis of direct suffrage. The manner, in which a head is elected, shall be laid down by a special law.¹⁴⁾

(2) A head shall take an oath which says: “I promise to my honour and conscience to fulfil my duties properly, to protect interests of a self-government region, to observe the Constitution of the Slovak Republic, constitutional laws, laws and other generally binding legal rules and with respect to the office of the head I will apply them pursuant to my best consciousness and conscience.”.

(3) A head shall represent a self-government region externally. A head shall be a statutory body in relation to the relationships of the property rights, working rights and other relationships, shall decide on matters in which a law authorises a self-government region to make decisions relating to the rights and obligations of legal and natural persons.

(4) If a head supposes that a resolution of a Council is contrary to a law or that it is onerous for a self-government region, he or she may suspend its execution in such manner that he or she does not sign it within the period pursuant to section 11(9).

(5) If the execution of a resolution of a Council is suspended pursuant to paragraph 4, a Council may ratify this resolution by the qualified majority of votes of all deputies. A head may not suspend the execution of ratified resolution. In case a Council does not ratify the resolution within two months since its approval, the resolution loses effect.

(6) As a rule once a month, a head shall call chairmen of committees to discuss issues concerning a self-government region.

(7) A deputy head stands in for a head within the scope determined by a Council.

(8) The office of a head is incompatible with the office carried out by

a. a deputy;

b. a member of a body of legal person established or founded by a self- government region;

c. a statutory representative of legal person with investment of a self-government region;

d. an employee of a self-government region;

e. a mayor of municipality or

f. a special law.¹⁷⁾

(9) The office of a head is public office that shall not be carried out as employment relationship. Existing employment relationship or similar relationship shall maintain.

(10) For the discharge of the office, a head shall be entitled to a salary pursuant to a special law.

Section 17

1. The mandate of the head shall cease by

a. the expiration of election period;

b. the refusal to take an oath or taking the oath with reservation;

c. the resignation of the mandate;

d. the reason when he or she was lawfully condemned for wilful criminal offence, or he or she was lawfully condemned for criminal offence and the court did not decide on a probationary suspension of the imprisonment sentence;

e. the deprivation of legal capacity or its limitation;

f. the termination of permanent residence in a municipality within the territory of a self-government region;

g. the declaration of results of referendum on the revocation of a head, or

h. death.

(2) A head shall resign from the mandate in written form and the resignation shall become effective by the delivery to an office. The resignation may not be withdrawn.

Section 18

(1) The head may lay on the fine of SKK 500, 000 to legal or natural person eligible to run a business for the breach of a regulation. The fine shall be revenue of a self-government region.

(2) With respect to the fine, a head shall take into account particularly significance, manner, time of duration and consequences of wrongful action.

(3) The fine may be laid on within one year since a head learns who caused the breach, within three years since the day on which a duty was breached.

Section 19

Chief Controller

(1) The chief controller shall be an employee of a self-government region who shall carry out the control on the observance of tasks by a self-government region, in particular the control of revenues and expenses of the budget of a self-government region and control of management and disposal of its property. In case a Council asks for, a chief controller must carry out control. At least once a year, a chief controller shall submit a report on results of controlling activity to a Council. A Council shall create for the controller conditions enabling independent performance of his tasks.

(2) The chief controller shall manage the control unit.

(3) The office of the chief controller shall be incompatible with the office carried out by

a. a deputy of a Council;

b. a head;

c. a member of a body of legal person established or founded by a self- government region;

d. other employee of a self-government region or

e. a special law.¹⁷⁾

(4) The office of the chief controller shall expire by

a. the expiration of electoral period;

b. the relinquishment of the office;

c. the revocation from the office or

d. death.

(5) A Council shall revoke the chief controller from his or her office, if:

a. he or she was lawfully condemned for wilful criminal offence, or he or she was lawfully condemned for criminal offence and the court did not decide on a probationary suspension of the imprisonment sentence;

b. he or she discharges functions incompatible with the chief controller’s function pursuant to paragraph 3;

c. he or she fails to fulfil obligations according to paragraph 1 rudely and repeatedly, or

d. he or she lost legal capacity or his or her legal capacity was limited.

Section 20

Committees

(1) A Council shall establish the mandate committee and finance committee; it may also establish other committees as its permanent or temporary advisory, initiative and control bodies. Only a deputy may become a member of the mandate committee.

(2) Committees shall consist of deputies and other persons elected by a Council. Deputies shall comprise more than a half of committee’s members, a committee shall be chaired by a deputy. Committees may invite specialists from practice to be advised on professional issues.

(3) Committees meet as the need arises, normally once a month.

(4) A Council shall assign the tasks and system of meetings.

(5) Remuneration may be provided to a committee’s member who is not a deputy.

Section 21

Office

(1) Administrative and organisational matters of the Council, head and other bodies established by the Council shall be ensured by the Office that consists of employees of the self-government region; a Council shall set the number and composition of working functions.

(2) The Office’s work shall be managed and organised by the Office manager who shall account for his or her action to a head.

Section 22

(1) The procedure in which a head takes a decision on rights and obligations of legal and natural persons shall be governed by general rules on administrative procedure,¹⁹ if this Act does not provide otherwise.

(2) An appeal to a court can be lodged against any decision of the head regarding matters of territorial self-government.

(3) The appellate body for any decision of the head relating to the execution of state administration transferred to a self-government region is a competent central body of state administration.

(4) The decision of the head can not be reviewed out of the appellate procedure.

(5) In case the head does not allow the prosecutor’s protest to the full extent, the head shall make again a decision on the protest upon the proposal of a special committee that he has the power to establish.

(6) The Office shall carry out the discharge of any decision of the head.

Section 23

First Council’s meeting elected in 2001 shall be called by the head of a self-government region so as it could take place within 30 days since the date on which election’s results to self-government regions´ bodies are declared.

Art. II

The Act No.143/1992 Coll. on salary and remuneration for work emergency in budgetary and some other organisations and bodies as amended by the Act of the National Council of the Slovak Republic No.10/1993 Coll., Act of the National Council of the Slovak Republic No.275/1993 Coll., Act of the National Council of the Slovak Republic No.260/1995 Coll., Act of the National Council of the Slovak Republic No.386/1996 Coll., Act No.333/1997 Coll., Act No.380/1997 Coll. and Act No.190/1998 Coll. shall be amended as follows:

In section 1(1), new letter g. shall be inserted after letter f. and says:

” g. the self-government region,”.

Present letter g. shall be marked as letter h.

Art. III

The Act shall become effective on the day of completion of elections to self-government regions´ bodies in 2001.