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LEGAL ACTS OF THE REPUBLIC OF LATVIA
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The translation of this document is outdated.
Translation validity: 10.03.2016.–02.01.2018.
Amendments not included: 07.12.2017., 25.10.2018., 06.06.2019., 07.11.2019.

Text consolidated by Valsts valodas centrs (State Language Centre) with amending laws of:

4 February 1999 [shall come into force from 25 February 1999];
11 November 1999 [shall come into force from 1 January 2000];
23 November 2000 [shall come into force from 1 October 2001];
6 February 2003 [shall come into force from 6 March 2003];
10 April 2003 [shall come into force from 14 May 2003];
30 October 2003 [shall come into force from 1 April 2004];
4 March 2004 [shall come into force from 7 April 2004];
6 October 2005 [shall come into force from 27 October 2005];
24 November 2005 [shall come into force from 1 January 2006];
24 May 2007 [shall come into force from 26 June 2007];
14 June 2007 [shall come into force from 15 July 2007];
12 June 2008 [shall come into force from 16 July 2008];
17 July 2008 [shall come into force from 13 August 2008];
7 May 2009 [shall come into force from 2 June 2009];
10 September 2009 [shall come into force from 9 October 2009];
1 December 2009 [shall come into force from 1 October 2010];
13 May 2010 [shall come into force from 2 June 2010];
17 June 2010 [shall come into force from 8 July 2010];
23 September 2010 [shall come into force from 14 October 2010];
16 December 2010 [shall come into force from 1 January 2011];
14 April 2011 [shall come into force from 1 June 2011];
28 February 2013 [shall come into force from 27 March 2013];
12 September 2013 [shall come into force from 1 January 2014];
6 November 2013 [shall come into force from 1 January 2014];
18 September 2014 [shall come into force from 8 October 2014];
16 October 2014 [shall come into force from 12 November 2014];
25 February 2016 [shall come into force from 10 March 2016].

If a whole or part of a section has been amended, the date of the amending law appears in square brackets at the end of the section. If a whole section, paragraph or clause has been deleted, the date of the deletion appears in square brackets beside the deleted section, paragraph or clause.

The Saeima1 has adopted and
the President has proclaimed the following Law:

Railway Law

Chapter I
General Provisions

Section 1. Terms Used in this Law

The following terms are used in this Law:

1) safety certificate - a document which gives a railway undertaking the access right to the railway infrastructure;

2) railway operation - an activity that ensures the functioning of a railway, as well as the use, maintenance and development of the railway infrastructure, and use of the rolling stock;

3) development of railway infrastructure - a set of measures [establishment, construction, upgrading (improvement) of infrastructure, capacity enhancement] which, according to the transport policy planning documents, is carried out in order to substantially increase the speed of carriage by rail, improve the safety, quality and other technical capabilities of the railway;

4) railway infrastructure capacity - a possibility to plan train paths that are requested for a railway line for a specific period of time;

5) use of railway infrastructure - services which are provided by the railway infrastructure manager to other persons, on a contractual basis, granting the right to use the railway infrastructure;

6) maintenance of railway infrastructure - a set of measures (technical maintenance, renewal of the infrastructure) continuously carried out by the railway infrastructure manager in order to ensure that use of the railway infrastructure objects is in compliance with the Railway Technical Operations Regulations;

7) carriage by rail - services provided for passenger or freight carriage, on a contractual basis, for inland or international traffic by railway;

8) public procurement of carriage by rail - rail passenger and freight services and other services associated therewith which are paid for fully or in part from the State or local government funds;

9) railway specialist - a person whose work is directly related to railway traffic, who has special education or who is specially trained and who in order to be entitled to work in the relevant profession has, according to specified procedures, been issued the document certifying qualification (a railway specialist certificate or professional competence certificate);

10) Railway Technical Operations Regulations - regulations issued by the Cabinet and which govern the basic railway technical operations requirements;

11) railway right of way - an area of land which is an integral part of the railway infrastructure and which is intended for the placement of railway infrastructure objects in order to ensure the development of the railway infrastructure and the safe operations, as well as to protect people and the environment from harmful effects of the railway;

12) railway infrastructure manager - a capital company or institution which manages the railway infrastructure (maintenance and development of the railway infrastructure), plans, organises and supervises the movement of trains and other rolling stock over the railway infrastructure tracks under its management, as well as is responsible for the management of the infrastructure control and safety system and, in cases where the law does not provide for restrictions, performs the essential functions of the railway infrastructure manager. Separate functions of the railway infrastructure manager may be performed by various institutions or capital companies;

13) route - a pre-selected path of movement of rolling stock between two end points in a specified time period;

14) railway undertaking - a commercial company which has received a railway undertaking licence to conduct carriage by rail (passengers or freight) between stations and for this purpose ensures traction, or also a commercial company which has received a railway undertaking licence and provides only traction services between stations;

15) access right to railway infrastructure - the rights of a railway undertaking to use the public-use railway infrastructure after a safety certificate has been obtained and a contract has been entered into with the railway infrastructure manager;

16) rolling stock - locomotives, wagons, multiple units, power wagons, drivable self-propelled wagons, track repair equipment, cranes, and other machinery and devices which due to their technical features are able to or do move by rail;

17) means of traction - locomotives, power wagons and similar rolling stock by means of which the primary energy (electrical, mechanical or hydraulic energy) is converted into the mechanical energy of train movement;

18) train - an assembly of wagons or other rolling stock coupled with one or more means of traction which has been assigned a train number and equipped with special signalling devices;

19) tariff - a system of rates by means of which the charges for carriage by rail or for other services offered by the railway are determined;

20) safety permit - a document which certifies the capacity of a specific commercial company to operate in the relevant commercial activity sphere in the railway sector, taking into account the safety requirements;

21) earth structure - an earth structure complex which is acquired in working the surface of the ground and which is intended for the locating of a superstructure, ensuring the solidity of tracks and the protection thereof against atmospheric waters and ground water;

22) safety management system - a set of organisational measures implemented by a railway infrastructure manager and railway undertaking in order to guarantee the safe management of their activities;

23) essential functions of the railway infrastructure manager - a decision-making on allocation of capacity, train path allocation, including both the definition and the assessment of availability and the allocation of individual train paths, and decision-making on infrastructure charging, including determination and levying of the charges;

24) alternative route - another route between the same origin and destination where the two routes can be interchanged for the provision of the respective freight or passenger services of the railway undertaking;

25) viable alternative - access to another service facility which is economically acceptable to the railway undertaking, and allows it to provide the respective freight or passenger service;

26) service facility - an installation (also ground area, building, and equipment) which has been specially arranged, as a whole or in part, to allow the supply of one or more services referred to in Section 12.1, Paragraph two, three or four of this Law;

27) operator of a service facility - any merchant or its structural unit responsible for managing one or more service facilities or providing one or more services referred to in Section 12.1, Paragraphs two, three, and four of this Law to a railway undertaking;

28) licence of a railway undertaking - an authorisation issued by the licensing authority to a commercial company by which the right of such commercial company to provide carriage by rail services as a railway undertaking is recognised. The abovementioned rights may be limited to the provision of specific types of services;

29) licensing authority - an institution responsible for granting licences of a railway undertaking;

30) reasonable profit - a rate of return on own capital that takes account of the risk (including that to revenue) incurred by the operator of a service facility, or the absence of such risk. The abovementioned rate is in line with the average rate for the relevant sector in recent years;

31) applicant - a railway undertaking in case when carriage is taking place from a country other than a European Union Member State (hereinafter - the third country), or to the third country. In other cases - a railway undertaking or another person with a public-service or commercial interest in procuring infrastructure capacity for conducting carriage;

32) congested infrastructure - a railway line of public-use railway infrastructure in which demand for infrastructure capacity cannot be fully satisfied during certain periods of time even after mutual coordination of the different requests for capacity;

33) capacity enhancement plan - a measure or a set of measures with a calendar schedule drawn up for their implementation to alleviate the capacity constraints which led to the declaration of a railway line of public-use railway infrastructure as a congested infrastructure;

34) coordination - the process through which the performer of the essential functions of the public-use railway infrastructure manager and applicants attempt to resolve situations in which there are conflicting applications for infrastructure capacity;

35) framework agreement - a legally binding general agreement setting out the rights and obligations of an applicant and the performer of the essential functions of the public-use railway infrastructure manager, and also infrastructure manager (if its area of activity is concerned) in relation to the infrastructure capacity to be allocated and the charges to be levied over a period of time exceeding the term of validity of one working timetable period;

36) network - the entire railway infrastructure managed by a railway infrastructure manager;

37) network statement - a statement which sets out in detail the general rules, deadlines, procedures and criteria for charging, charge collection, and capacity allocation schemes, and also other information required to enable applications for infrastructure capacity;

38) train path - a part of the infrastructure capacity needed to run a train between two places over a given period of time;

39) working timetable - the aggregate of data defining all planned train movements on the relevant infrastructure during the period of time for which such aggregate of data is in effect;

40) storage siding - sidings specifically dedicated to temporary parking of railway vehicles between two assignments;

41) heavy maintenance - work that is not carried out routinely as part of day-to-day operations and requires the rolling stock unit to be removed from service;

42) charging scheme - the rules for charging developed and approved by the performer of the essential functions of the public-use railway infrastructure manager which are applied to all railway undertakings in the relevant network;

43) charge collection scheme - the rules for charge collection developed and approved by the performer of the essential functions of the public-use railway infrastructure manager which are applied to all railway undertakings in the relevant network;

44) capacity allocation scheme - the rules for capacity allocation developed and approved by the performer of the essential functions of the public-use railway infrastructure manager which are applied to all railway undertakings in the relevant network;

45) renewal of the railway infrastructure - major railway infrastructure substitution works related to capital expenditure which does not change its general operational indicators;

46) upgrading of the railway infrastructure - major railway infrastructure modification works related to capital expenditure which improve its general operational indicators.

[4 March 2004; 24 May 2007; 23 September 2010; 25 February 2016]

Section 2. Purpose of the Law

This Law governs the principles of railway operation and traffic safety, as well as the railway management procedures.

Section 2.1 Exceptions to the Application of this Law

The Law shall not apply to track infrastructure which is functionally separate from the railway infrastructure and intended for the provision of passenger services within the territory of a city or transport within the territory of a company.

[25 February 2016]

Section 3. Definition of a Railway

A railway is a system of transport which, as an organisational and technical whole, comprises:

1) the railway infrastructure;

2) the rolling stock and buildings and structures necessary for its functioning;

3) railway undertakings;

4) railway infrastructure managers;

5) persons who, on assignment from a railway undertaking, an operator of a service facility, a consignee, a consignor, or a railway infrastructure manager, ensure the relevant technological processes (the construction, repairs, and technical maintenance of the railway infrastructure technical equipment, the construction, repairs, and technical maintenance of railway rolling stock and shunting operations);

6) service facilities;

7) operators of service facilities.

[4 March 2004; 6 October 2005; 25 February 2016]

Chapter II
Railway Infrastructure

Section 4. Railway Infrastructure

(1) The railway infrastructure is a complex engineering structure which comprises:

1) railway superstructure [rails (tracks), switches, cross-ties, ballast, and other components of the superstructure], level crossings and crossings;

2) ground beneath tracks (earth structure and railway right of way), and engineering structures (bridges, road crossings, culverts, drainage installations, communication line conduits, retaining walls or protective walls and the like);

3) boundary markings and protective plantings;

4) railway signalling, central control and interlocking communications systems, facilities to ensure the safe movement of trains and the regulation of switch positions and signals, signal lights, signal indicators, and fixed signals;

5) railway telecommunications networks;

6) aerial and underground railway electric supply cables, catenary, transformer and traction substations;

7) railway stations, passing and stopping places;

8) buildings and structures necessary for the maintenance, repair and use of the railway infrastructure objects.

(2) The railway infrastructure also comprises the airspace and underground within the railway right of way insofar as necessary for the operation and protection of the railway infrastructure objects and for railway traffic.

[4 March 2004]

Section 5. Classification, Use and Ownership of the Railway Infrastructure

(1) The railway infrastructure shall be classified according to its use as follows:

1) public-use railway infrastructure. It is open for the provision of freight and passenger services or technological processes, by following the principle of equality, and it is registered in the railway infrastructure register as a public-use railway infrastructure. Public-use railway infrastructure status shall be granted by a Cabinet order;

2) private-use railway infrastructure. Its tracks are used by its owner or other persons on behalf of the owner or with the permission of the owner for ensuring carriage or a commercial company's technological processes, and it is registered in the railway infrastructure register as a private-use railway infrastructure.

(2) The railway infrastructure as a whole, or separate objects within the infrastructure, may belong to the State, local government, or to another legal or natural person.

(21) In accordance with the requirements of the laws and regulations governing the field of railways and the equipment and special features of the railway infrastructure, the railway infrastructure manager shall issue documents in respect of the use of the railway infrastructure which are publicly accessible on the website of the railway infrastructure manager.

(3) The private-use railway infrastructure, if needed to get from one service facility to another service facility, serves or can serve more than one final customer, or is located in the service facility (except for the paths situated within railway repair workshops, depots, or locomotive sheds), is comparable to a service facility in relation to its use, charge set for the services provided therein, and closing conditions. The owner of such infrastructure has the obligations specified for the operator of a service facility, and the provisions of Sections 5.1, 11.2, Section 12.1, Paragraphs two, three, and four, and Section 12.2 of this Law are applied. The abovementioned owner shall be subject to the supervision and control of the State Railway Administration.

(4) If a part of the public-use railway infrastructure is no longer needed to get from one service facility to another service facility, it does not serve or cannot serve more than one final customer, or is not located in the service facility, its owner or legal possessor may request the State Railway Administration to register the relevant infrastructure part in the railway infrastructure register as a private-use railway infrastructure.

[4 March 2004; 24 May 2007; 25 February 2016]

Section 5.1 Access to Railway Infrastructure

(1) A railway undertaking shall be granted, under equitable, non-discriminatory and transparent conditions, the right to access the public-use railway infrastructure for the purpose of operating all types of rail freight services. That right shall include also access to the infrastructure connecting maritime and inland ports and other service facilities referred to in Section 12.1, Paragraph two of this Law, and to the infrastructure serving or potentially serving more than one final customer.

(2) A railway undertaking shall be granted with the right to access the public-use railway infrastructure so that it could provide international passenger services. That right shall include also access to the infrastructure connecting the service facilities referred to in Section 12.1, Paragraph two of this Law.

(3) A railway undertaking shall be granted with the right to access the public-use railway infrastructure so that it could provide regular domestic passenger services according to the concluded contract for the public procurement of the provision of public transport services, and also such domestic passenger services that are not regular passenger services. That right shall include also access to the infrastructure connecting the service facilities referred to in Section 12.1, Paragraph two of this Law.

(4) Performers of individual technological processes operating on assignment from a railway undertaking, an infrastructure manager, an operator of a service facility, a consignee, or a consignor shall be granted the right to access the infrastructure referred to in Section 5, Paragraph one, Clause 1 of this Law on the basis of the contract entered into with the infrastructure manager and by using the spare capacity.

[25 February 2016]

Section 6. State Public-use Railway Infrastructure

(1) The State public-use railway infrastructure (the public-use railway infrastructure belonging to the State or the public-use railway infrastructure under management of the person referred to in Paragraph two of this Section) is developed to meet the needs of national economy and its development, the interests of stable transportation, and the requirements of environmental protection.

(2) The State public-use railway infrastructure manager, except for the performance of the essential functions of the infrastructure manager in the cases referred to in Section 13.1, Paragraph one of this Law, shall be a State joint stock company. By a Cabinet order individual objects of the State public-use railway infrastructure may be handed over into the management of other persons.

[23 September 2010; 25 February 2016]

Section 7. Classification of the Public-use Railway Infrastructure According to its Functional Role and Technical Capabilities

(1) The public-use railway infrastructure shall be classified according to its functional role as follows:

1) railway infrastructure of strategic (State) importance (services the main passenger and freight traffic flow);

2) railway infrastructure of regional importance (significant locally).

(11) In strategically and regionally important railway infrastructure shall be included also station tracks adjacent thereto or associated with it, tracks of special importance, sidings, buffer stops and other tracks.

(2) Strategically and regionally important railway infrastructure shall be classified into categories according to its technical capabilities. The draft system for classifying the railway infrastructure shall be prepared by the Ministry of Transport and approved by the Cabinet.

(3) The Cabinet shall determine the railway infrastructure of strategic and regional importance.

[4 March 2004]

Section 7.1 Heritage Railway

(1) Heritage railway is the railway tracks, engineering structures, equipment, buildings, rolling stock of the narrow-gauge railway line Gulbene-Alūksne. Railway right of way shall also be part of heritage railway.

(2) Objects of heritage railway shall be managed by their owners (possessors).

(3) In order to preserve heritage railway and to promote its use according to the functions, as well as co-operation of State and local government institutions, owners (possessors) of objects of heritage railway and non-governmental organisations, implementing the best practice of museum railways possible, the Advisory Council for Heritage Railway shall be established and it will consist of representatives of the Ministry of Transport, the Ministry of Culture, the State Railway Administration, the State Railway Technical Inspectorate, the State Inspection for Heritage Protection, Gulbene Municipality Council, Alūksne Municipality Council, the persons involved in the management of objects of heritage railway and interested associations and foundations, the objective of which according to the articles of association is the preservation of the respective cultural and historical heritage. The by-law of the Council shall be approved by the Cabinet, but the personnel - by the Minister for Transport. The rights, functions and operational procedures, as well as the procedures by which the persons referred to in this Section shall delegate representatives for work in the Council shall be determined in the by-law.

(4) The heritage railway infrastructure shall hold the status of a public-use railway infrastructure of regional significance.

(5) The requirements of Section 43 of this Law shall not apply to heritage railway.

(6) The State Railway Administration, on the basis of proposals of the Council referred to in Paragraph three of this Section, shall decide on assigning the funding resources referred to in Paragraph eight of this Section to owners (possessors) of objects of heritage railway. Funding resources shall be assigned for the following purposes only:

1) preservation and popularisation of the heritage railway referred to in Paragraph one of this Section;

2) educating the public regarding the railway sector and popularisation of the railway sector;

3) purchase and restoration of historic rolling stock and other machinery related to heritage railway;

4) use of the narrow-gauge railway line for carriage.

(7) Each year by 1 September, the Council referred to in Paragraph three of this Section shall prepare proposals regarding distribution of funding resources among owners (possessors) of objects of heritage railway for the subsequent year and submit such proposals to the State Railway Administration for taking of a decision to assign funding resources.

(8) Each year the public-use railway infrastructure manager shall provide for funding for executing the decision of the State Railway Administration referred to in Paragraph seven of this Section in the amount of 0.25 per cent from the total amount of the railway infrastructure funding referred to in Section 10, Paragraph two, Clauses 1 and 2 of this Law for the previous year.

(9) The public-use railway infrastructure manager shall assign the funding provided for in Paragraph eight of this Section each quarter, transferring a part of the funding provided for in Paragraph eight of this Section to the respective recipient of the funding by 10th date of the first month of the respective quarter according to the decision of the State Railway Administration. A fourth part of the planned funding shall be transferred in each of the first three quarters. The total amount of this funding shall be clarified when performing the final payment in the relevant year.

(10) Recipients of the funding shall prepare a report on its utilisation and shall submit for review to the Council referred to in Paragraph three of this Section not later than by 30 April of the year following the reporting year. The submitted reports on utilisation of the funding shall be approved by the State Railway Administration on the basis of recommendations of the Council.

[6 November 2013]

Section 8. Registration and Inventory

(1) The railway infrastructure in Latvia shall be subject to State registration and inventory.

(2) The creation of the railway infrastructure register and the establishment of inventory in conformity with the appropriate infrastructure classification shall be in accordance with procedures stipulated by the Cabinet.

(3) Use of unregistered infrastructure and granting for use is prohibited.

[4 March 2004]

Section 9. Maintenance and Development of the Railway Infrastructure

(1) The maintenance and development of the public-use railway infrastructure shall be financed in accordance with its functional role and category, and in accordance with the Railway Technical Operations Regulations.

(2) The State public-use railway infrastructure shall be developed as necessary, taking into account the general needs of the European Union, and also the need to cooperate with the neighbouring third countries. For that purpose, the Ministry of Transport after consultation with the interested parties shall develop and the Cabinet shall approve an indicative rail infrastructure development strategy the purpose of which is to meet the future mobility needs in terms of maintenance, renewal and development of the infrastructure based on sustainable financing of the railway system. Such strategy shall cover a time period of at least five years and shall be renewable.

(3) In accordance with this Law the State joint stock company (the State public-use railway infrastructure manager) which, according to the general policy determined by the State and the strategy referred to in Paragraph two of this Section, adopts a business plan including an investment and financial programme shall be responsible for the maintenance and development of the State public-use railway infrastructure. The plan shall be designed to ensure optimal and efficient use, provision and development of the infrastructure, concurrently ensuring financial balance and providing means for achieving these objectives. Before approval of the business plan, the abovementioned infrastructure manager shall ensure that known applicants and, upon their request, potential applicants can access the relevant information and can express their views on the content of the business plan regarding the conditions for access and use and the nature, provision and development of the infrastructure. The business plan may be a part of the medium-term strategy of the infrastructure manager.

(4) The State shall ensure that, under normal conditions of economic activity and over a reasonable period of time which shall not exceed five years, the profit and loss statement of a State public-use railway infrastructure manager shall at least balance income from infrastructure charges, surpluses from other commercial activities, non-refundable incomes from private sources and State funding, on the one hand, including advance payments from the State, where appropriate, and infrastructure expenditure, on the other hand. Taking into account the possible long-term objective of the user to cover the infrastructure costs for all modes of transport with the direct charges of users on the basis of fair, non-discriminatory competition between the various modes of transport, where rail transport is able to compete with other modes of transport, in accordance with the rules for charging specified in this Law, the State may request the State public-use railway infrastructure manager referred to in Section 6 of this Law to balance his revenue and expenditure without State funding.

(5) During the development of the Draft Annual State Budget Law the Ministry of Transport may, according to the specific procedures, submit a request for granting of the funds from the State budget for the maintenance of the State public-use railway infrastructure.

(6) The maintenance and development of a railway infrastructure belonging to local governments, commercial companies, other legal or natural persons shall be financed by their owners.

[25 February 2016]

Section 10. Funding of the Public-use Railway Infrastructure

(1) The funds for the maintenance and development of the State public-use railway infrastructure, as well as the funds for other payments provided for in this Law shall form the funding of the railway infrastructure to be managed by the public-use railway infrastructure manager.

(2) The funding of the railway infrastructure shall be formed by:

1) revenue from charge for the minimum access package referred to in Section 12.1, Paragraph one of this Law;

2) revenue from leasing the land belonging to the State on which the public-use railway infrastructure is located (Section 15, Paragraph two);

3) profit from services of the operator of the service facility owned by the State public-use railway infrastructure manager referred to in Section 6 of this Law;

4) State funding (Section 9, Paragraphs four and five);

5) profit from other commercial activity;

6) non-refundable revenue from private sources.

[1 December 2009; 25 February 2016]

Section 10.1 Costs of the Infrastructure and Accounting

(1) The State public-use railway infrastructure manager referred to in Section 6 of this Law shall, with regard to safety and necessity to maintain and improve the quality of the infrastructure service, be ensured with incentives to reduce the costs of maintaining and developing infrastructure and the level of access charges.

(2) Taking into account the competence of the State regarding planning and financing of maintaining and development of the railway infrastructure and, where applicable, the State budget planning principles, the Ministry of Transport and the State public-use railway infrastructure manager referred to in Section 6 of this Law shall conclude a contract covering a time period of not less than five years which conforms at least to the provisions specified in Section 10.2 of this Law and according to which the incentives referred to in Paragraph one of this Section are applied. The provisions of the contract and the structure of the payments to be made for funding the State public-use railway infrastructure manager referred to in Section 6 of this Law shall be agreed in advance to cover the whole of the contractual period.

(3) Not later than a month prior to signing of the contract referred to in Paragraph two of this Section the parties thereof shall inform the performer of the essential functions of the public-use railway infrastructure manager, the applicants and, upon their request, potential applicants and allow them to express their views on the content of the contract. The contract shall be published within one month of concluding it, and the State public-use railway infrastructure manager referred to in Section 6 of this Law shall ensure the consistency between the provisions of the contract and the business plan.

(4) The State public-use railway infrastructure manager referred to in Section 6 of this Law shall develop and maintain a register of its assets and such assets for the managing of which it is responsible. This register shall be used to assess the financing needed to maintain the assets. This shall be accompanied by detailed information regarding expenditure on renewal and upgrading of the infrastructure.

(5) The State public-use railway infrastructure manager referred to in Section 6 of this Law shall establish a method for apportioning costs to the different categories of services offered to railway undertakings and shall inform the performer of the essential functions regarding such method if the manager itself does not perform the essential functions, and shall provide him or her with all the information necessary for the development of the charging scheme. The abovementioned method shall be updated on the basis of the best international practice.

[25 February 2016]

Section 10.2 Provisions of the Contract between the Ministry of Transport and the Public-use Railway Infrastructure Manager

The contract between the Ministry of Transport and the public-use railway infrastructure manager shall have at least the following elements:

1) the scope of the contract as regards infrastructure and service facilities, structuring in accordance with Section 12.1 of this Law. It shall cover all aspects of the infrastructure management, also maintenance and renewal of the infrastructure already in operation. If necessary, construction of a new infrastructure may also be included in the contract;

2) the structure of payments or funds allocated to the infrastructure services listed in Section 12.1 of this Law, to maintenance and renewal, and to dealing with existing infrastructure maintenance and renewal backlogs. Where appropriate, the structure of payments or funds allocated to a new infrastructure may be covered by the contract;

3) user-oriented performance targets in the form of indicators and quality criteria covering the following elements:

a) train performance and customer satisfaction;

b) network capacity;

c) asset management;

d) activity volumes;

e) safety levels;

f) environmental protection;

4) the amount of possible infrastructure maintenance backlog and the assets which will be phased out of use and therefore trigger different financial flows;

5) the incentives referred to in Section 10.1, Paragraph one of this Law;

6) the minimum reporting obligations for the infrastructure manager in terms of content and frequency of reporting, including information to be published annually;

7) the agreed duration of the agreement which shall be synchronised and consistent with the duration of the infrastructure manager's business plan, concession, or safety permit accordingly, and the charging legal framework set by the State;

8) rules for dealing with major disruptions of operations and emergency situations, including contingency plans and provisions regarding early termination of the contract and timely information to users;

9) remedial measures to be taken if either of the parties is in breach of its contractual obligations, or exceptional circumstances affecting the availability of public funding have occurred; the contract includes conditions and procedures for renegotiation and early termination of the contract;

10) the procedures for control of the implementation of the contract.

[25 February 2016]

Section 11. Charging Principles for Access to a Public-use Railway Infrastructure and Charge Discounts

(1) A charging scheme in relation to the minimum access package referred to in Section 12.1, Paragraph one of this Law and access to the infrastructure connecting the infrastructure and service facilities, after consultations with the applicants and the public-use railway infrastructure manager, shall be developed and approved by the performer of the essential functions of the public-use railway infrastructure manager and submitted to the public-use railway infrastructure manager for inclusion in the network statement. Except for the cases where specific arrangements are made in accordance with Section 11.1, Paragraph ten of this Law, the performer of the essential functions of the public-use railway infrastructure manager shall ensure that the abovementioned charging scheme in use is based on the same principles over the whole of the relevant network and that the application of the charging scheme results in equivalent and non-discriminatory charges for different railway undertakings that provide services of an equivalent nature in similar parts of the market.

(2) The charges for the minimum access package referred to in Section 12.1, Paragraph one of this Law and for access to the infrastructure connecting the infrastructure and service facilities shall be determined in conformity with the direct costs of operating the train service and in accordance with the provisions of Paragraphs three and four of this Section, and also Section 11.1 of this Law.

(3) Additional charges which reflect the scarcity of capacity of an identifiable section of the infrastructure during time periods of congestion may be added to the charges referred to in Paragraph two of this Section. If a capacity enhancement plan is not developed or if the actions identified in the capacity enhancement plan are not fulfilled, the performer of the essential functions of the public-use railway infrastructure manager shall take a decision to cease the levy of such additional charges to the relevant infrastructure. If the capacity enhancement plan cannot be executed due to reasons beyond control or if the options available are not economically or financially viable, the performer of the essential functions of the public-use railway infrastructure manager may, subject to a permission of the State Railway Administration, continue to levy the additional charges which reflect the scarcity of capacity of an identifiable section of the infrastructure during time periods of congestion.

(4) The charges referred to in Paragraph two of this Section may be modified to take into account the costs of environmental effects caused by the rail traffic. Any such modification shall be differentiated according to the magnitude of the effect caused. When applying the charges for the costs of noise effects caused by the freight rolling stock, the performer of the essential functions of the public-use railway infrastructure manager shall observe the Commission Implementing Regulation (EU) 2015/429 of 13 March 2015 setting out the modalities to be followed for the application of the charging for the cost of noise effects.

(5) Any such modification of the infrastructure charges referred to in Paragraph four of this Section (for taking into account the costs of noise reduction measures) shall promote the retrofitting of wagons with the most economically viable low-noise braking technology available. Inclusion of environmental protection costs into the infrastructure charges, if thus the overall revenue accruing to the infrastructure manager is increased, is allowed only if such charging is applied to road freight transport in accordance with Law on the Road User Charge. If charging of environmental protection costs generates additional revenue, the infrastructure manager shall use such revenue for implementation of environmental protection measures according to the railway environmental protection policy. The performer of the essential functions of the public-use railway infrastructure manager shall ensure that the necessary information is kept and that the origin of the charging of environmental protection costs and its application can be traced.

(6) Paragraphs four and five of this Section shall not be applied to the rolling stock units that are used or are intended to be used for carriage from the third countries or to the third countries with a railway network with a track gauge of 1520 millimetres.

(7) To avoid undesirable disproportionate fluctuations, the charges referred to in Paragraphs two, three, and four of this Section may be set as the average value for appropriate volume of train services and periods. The relative magnitude of such charges shall be related to the costs attributable to the train services.

(8) Notwithstanding the direct cost principle laid down in Paragraph two of this Section, any discount on the charges levied on a railway undertaking by the performer of the essential functions of the public-use infrastructure manager, for any service, shall comply with the following criteria:

1) the discounts shall be limited to the actual saving of the administrative costs to the infrastructure manager (except for the case referred to in Clause 2 of this Paragraph) and, upon determining the level of discount, no account may be taken of cost savings already internalised in the charge levied;

2) the performer of the essential functions of the infrastructure manager may introduce similar discount conditions provided for in the charging scheme available to all users of the infrastructure in relation to specified traffic flows, providing for time-limited discounts to encourage the development of new rail services, or discounts encouraging the use of considerably underutilised lines;

3) discounts may relate only to charges levied for a specific infrastructure section;

4) similar discount conditions, applied in a non-discriminatory manner to any railway undertaking, provided for in the charging scheme shall apply for similar services.

(9) Schemes according to which charges for access to public-use railway infrastructure are calculated shall encourage the railway undertakings and the public-use railway infrastructure manager to minimise disruption and improve the performance of the railway network through a performance scheme. Such scheme may include penalties for actions which disrupt the operation of the network, compensation for those who suffer losses from disruption, and bonuses that reward better-than-planned performance. The basic principles of the performance scheme applied throughout the network shall be determined by the Cabinet.

(10) The public-use railway infrastructure managers (the performers of the essential functions of the infrastructure manager) shall cooperate to enable the application of efficient charging schemes for access to public-use railway infrastructure and to coordinate the charging or to charge for the operation of train services which cross more than one infrastructure network of the rail system within the European Union. Optimal competitiveness of international rail services and efficient use of the railway networks shall be especially promoted, to this end appropriate procedures shall be developed. Such cooperation is implemented to enable efficient application of the mark-ups referred to in Section 11.1 of this Law and the railway network performance schemes referred to in Paragraph nine of this Section, if the traffic crosses more than one network of the rail system infrastructure within the European Union.

(11) A railway infrastructure manager and a railway undertaking may be compensated, in a non-discriminatory manner, such environmental protection, accident and infrastructure costs which are not covered by competitive transport modes. In each specific case, the Cabinet shall take a decision to grant compensation, on the amount and the procedures for paying them, taking into account the following conditions:

1) where a railway undertaking receiving compensation enjoys an exclusive right, the compensation shall be accompanied by comparable benefits to users;

2) the methodology used and calculations performed enable to demonstrate the specific uncharged costs not covered by competitive transport modes.

(12) A complaint regarding the scheme which is applied when calculating the charge for the minimum access package referred to in Section 12.1, Paragraph one of this Law and for access to infrastructure connecting the infrastructure and service facilities, or a complaint regarding the already determined charge may be submitted by the owner of the public-use railway infrastructure, the public-use railway infrastructure manager not performing the essential functions of the manager, the applicant, or the railway undertaking to the State Railway Administration not later that within one month from the day it was published.

[25 February 2016]

Section 11.1 Exceptions to Application of Charging Principles for Access to Public-use Railway Infrastructure

(1) In order to obtain full recovery of the costs incurred by the public-use railway infrastructure manager the performer of the essential functions of the public-use railway infrastructure manager may, if the market can bear this, levy mark-ups on the charges for the minimum access package referred to in Section 12.1, Paragraph one of this Law and for access to infrastructure connecting the infrastructure and service facilities.

(2) Before approving the levy of mark-ups, the performer of the essential functions of the public-use railway infrastructure manager shall evaluate their relevance in at least the following market segments and choose the most important of them:

1) passenger and freight services;

2) trains transporting dangerous goods and other freight trains;

3) domestic and international transport;

4) combined transport and direct trains;

5) suburban (regional) passenger services and interurban passenger services;

6) block trains and single wagon load trains;

7) regular train services and occasional train services.

(3) The performer of the essential functions of the public-use railway infrastructure manager may further distinguish market segments according to freight or passengers carried.

(4) Market segments in which railway undertakings are not operating at the relevant moment but may provide services during the period of validity of the charging system for charges for the minimum access package referred to in Section 12.1, Paragraph one of this Law and for access to infrastructure connecting the infrastructure and service facilities shall also be defined. In relation to the abovementioned market segments the mark-ups shall not be applied.

(5) The performer of the essential functions of the public-use railway infrastructure manager shall submit information to the public-use railway infrastructure manager which shall include the list of those market segments in which mark-ups are applied. The list of market segments shall contain at least the three following segments:

1) services of freight carriage;

2) passenger services provided within the framework of a public service contract;

3) other passenger services.

(6) The list of market segments shall be published in the network statement and shall be reviewed at least every five years. This list shall be monitored by the State Railway Administration.

(7) The mark-ups shall be applied on the basis of efficient, transparent and non-discriminatory principles, while guaranteeing optimal competitiveness of rail and taking into account the productivity increases achieved by railway undertakings. The level of charges shall not exclude the use of the public-use railway infrastructure by market segments which can pay at least the direct costs, and also a rate of return which the market can bear.

(8) If the performer of the essential functions of the public-use railway infrastructure manager intends to amend essential elements of the charging conditions referred to in Paragraphs one, two, three, and four of this Section, it shall publish them on the website at least three months in advance of the deadline for the publication of the network statement according to Section 28, Paragraph five of this Law.

(9) For the freight carriage from and to third countries whose track gauge is 1520 millimetres, the performer of the essential functions of the public-use railway infrastructure manager may set higher charges in order to obtain full costs recovery of the costs incurred.

(10) For specific future investment projects, or specific investment projects that have been completed after 1988, the performer of the essential functions of the public-use railway infrastructure manager may set or continue to set higher charges on the basis of the long-term costs of such projects if they increase efficiency or cost-effectiveness or both indicators and could not otherwise be or have been undertaken. Such a charging calculation may also incorporate agreements on the sharing of the risk associated with new investments.

(11) To prevent discrimination, any average and marginal charges set by the performer of the essential functions of the public-use railway infrastructure manager for equivalent use of the infrastructure are comparable and that comparable services in the same market segment are subject to the same charges. The performer of the essential functions of the public-use railway infrastructure manager shall submit information to the public-use railway infrastructure manager, indicating that the charging conditions meet these requirements. The public-use railway infrastructure manager shall show them in the network statement in so far as this can be done without disclosing confidential economic activity information.

[25 February 2016]

Section 11.2 Charging Principles for Services Provided at a Service Facility

(1) The charges for services provided by the operator of a service facility shall be determined by the operator of a service facility.

(2) Track access charges within the service facilities referred to in Section 12.1, Paragraph two of this Law and charges for services provided in such facilities shall not exceed the costs of providing it, plus a reasonable profit.

(3) Where the services referred to in Section 12.1, Paragraphs three and four of this Law as additional and ancillary services are provided by only one operator of a service facility, the charge imposed for such a service shall not exceed the costs of providing it, plus a reasonable profit.

(4) The operator of the facility who provides the services referred to in Section 12.1, Paragraphs two, three, and four of this Law shall, in accordance with Section 28 of this Law, inform the infrastructure manager regarding the charges to be included in the network statement or shall indicate a website where such information is made available free of charge in an electronic format.

(5) The charges for the use of the service facility shall be paid to the operator of the service facility and used to fund their economic activity.

(6) The operator of the service facility shall provide the State Railway Administration with all the necessary information on the charges imposed and shall be able to demonstrate to the railway undertaking that the charges for the provided services actually invoiced to the railway undertaking, taking into account the provisions of this Section, have been calculated in compliance with the information indicated in the network statement.

[25 February 2016]

Section 12. Charging and Collection of Charges for Access to a Public-use Railway Infrastructure

(1) A decision on the calculated charges for the minimum access package referred to in Section 12.1, Paragraph one of this Law and for access to infrastructure connecting the infrastructure and service facilities shall be taken by the performer of the essential functions of the public-use railway infrastructure manager and it shall submit all the necessary information thereon to the State Railway Administration. The performer of the essential functions of the public-use railway infrastructure manager is able to demonstrate to the railway undertaking that the abovementioned charges actually invoiced to the railway undertaking, taking into account the relevant provisions of this Law, have been calculated in compliance with the information indicated in the network statement. The performer of the essential functions of the public-use railway infrastructure manager shall publish decisions on the amount of charges on its website, indicating the date of publishing these decisions.

(2) The public-use railway infrastructure manager shall, according to the charge collection scheme developed and approved (after consultations with the applicants and public-use railway infrastructure manager) by the performer of the essential functions of the public-use railway infrastructure manager, collect the charges for the minimum access package referred to in Section 12.1, Paragraph one of this Law and for access to infrastructure connecting the infrastructure and service facilities. The public-use railway infrastructure manager shall use the received charges to fund its economic activity. The performer of the essential functions of the public-use railway infrastructure manager shall submit the charge collection scheme to the public-use railway infrastructure manager for inclusion in the network statement.

(3) The performer of the essential functions of the public-use railway infrastructure manager may take a decision by which a charge for capacity used for the infrastructure maintenance shall be calculated. Such charges shall not exceed the revenue not obtained by the public-use railway infrastructure manager due to maintenance works.

(4) The performer of the essential functions of the public-use railway infrastructure manager may take a decision by which a relevant charge for part of capacity allocated but not used is calculated. Such non-usage charge shall provide incentives for efficient use of capacity and it is mandatory on applicants that are allocated train paths but who regularly fail to use allocated paths or part of them.

(5) The performer of the essential functions of the public-use railway infrastructure manager shall submit information to the public-use railway infrastructure manager indicating criteria according to which, on the basis of principles specified in Cabinet Regulations referred to in Section 27, Paragraph ten of this Law, it is determined that the train paths are not used. These criteria shall be published in the network statement, and the compliance with them shall be monitored by the State Railway Administration.

(6) The charges referred to in Paragraph four of this Section shall be covered by the applicant or the railway undertaking appointed in accordance with Section 27, Paragraph two of this Law.

(7) The performer of the essential functions of the public-use railway infrastructure manager shall, upon request, inform any interested party of the infrastructure capacity which has already been allocated to railway undertakings and which is used by them.

(8) The public-use railway infrastructure manager shall ensure that, on the basis of a scheme applied to railway undertakings when calculating the payment for the minimum access package referred to in Section 12.1, Paragraph one of this Law and for access to infrastructure connecting the infrastructure and service facilities, the actual payment complies with the provisions referred to in the network statement.

(9) The owner of the public-use railway infrastructure, the public-use railway infrastructure manager, the applicant or the railway undertaking may submit a complaint regarding the charge collection scheme to the State Railway Administration not later that within one month from the day it was published.

(10) The railway undertaking may submit a complaint regarding the actual payment for access to the public-use railway infrastructure to the State Railway Administration not later that within one month from the day of receiving the relevant invoice.

[25 February 2016 / See Paragraph 38 of Transitional Provisions]

Section 12.1 Services to Be Supplied to Railway Undertakings

(1) The railway infrastructure managers shall supply to all railway undertakings, in a non-discriminatory manner, the minimum access package which comprises:

1) handling of requests for railway infrastructure capacity;

2) the right to use capacity which is granted;

3) use of the railway infrastructure (also track points and junctions);

4) train control including signalling, regulation, dispatching and the communication and provision of information on train movement;

5) use of electrical supply equipment for traction current, where available;

6) all other information required to implement or operate the service for which capacity has been granted.

(2) Operators of service facilities shall supply in a non-discriminatory manner to all railway undertakings access (including track access) to the following service facilities, if any, and to the services supplied in these facilities:

1) passenger stations, their buildings (also suitable locations for ticketing service), and other facilities (also travel information displays);

2) freight terminals;

3) marshalling yards and train formation facilities, including shunting facilities;

4) storage sidings;

5) maintenance facilities, with the exception of heavy maintenance facilities dedicated to such types of rolling stock requiring specific facilities;

6) other technical facilities, including railway rolling stock cleaning and washing facilities;

7) maritime and inland port facilities which are linked to rail activities;

8) relief facilities for preventing consequences of accidents;

9) refuelling facilities and supply of fuel in these facilities (charges for fuel shall be shown on the invoices separately).

(3) Where the operator of a service facility provides any of the following services as additional services, it shall supply them upon request to all railway undertakings in a non-discriminatory manner:

1) traction electricity supply (charges for which shall be shown on the invoices separately from charges for using the electrical supply equipment) without prejudice to the application of the laws and regulations in the field of electricity market and use;

2) pre-heating of passenger trains (wagons);

3) services in relation to carriage of dangerous goods and abnormal train movement.

(4) Railway undertakings may request, as ancillary services, further services from the railway infrastructure manager or from operators of a service facility, and they may comprise:

1) access to telecommunication networks;

2) provision of supplementary information;

3) technical inspection of rolling stock;

4) ticket-selling services in passenger stations;

5) heavy maintenance services supplied at the service facilities dedicated to such types of rolling stock requiring specific facilities.

(5) The infrastructure manager and the operator of a service facility do not have an obligation to supply the services referred to in Paragraph four of this Section. Where the infrastructure manager or the operator of a service facility decides to offer to the railway undertakings any of these services, it shall be supplied, upon request, in a non-discriminatory manner.

[25 February 2016 / See Paragraph 40 of Transitional Provisions]

Section 12.2 Operation of the Operator of a Service Facility

(1) To guarantee full transparency and non-discrimination of access to the service facilities referred to in Section 12.1, Paragraph two, Clauses 1, 2, 3, 4, 7, and 9 of this Law, and the supply of services in these facilities where the operator of such a service facility, as a separate entity, in one legal person is under direct or indirect control of an entity which conducts commercial activity connected with provision of carriage by rail services, and if such legal person holds a dominant position in national railway transport services market for which this service facility is used, the operation of the operator of this service facility shall be organised in such a way that the operator is independent of the entity which conducts commercial activity connected with provision of carriage by rail services in terms of organisation and decision-making. Such independence shall not imply the requirement of the establishment of a separate legal person for service facilities and may be fulfilled with the organisation of distinct entities within a single legal person.

(2) For all the service facilities referred to in Section 12.1, Paragraph two of this Law, the operator and the performer of commercial activity connected with provision of carriage by rail services shall ensure separate accounts, also separate balance sheets and profit and loss accounts.

(3) Where operation of a service facility is ensured by an infrastructure manager or the operator of a service facility, as a separate entity, in one legal person is under direct or indirect control of an entity which conducts commercial activity connected with railway infrastructure management, it shall be considered proven that the requirements of Paragraphs one and two of this Section are complied with, if the requirements specified in Section 13.1 of this Law in relation to the independence of the performer of the essential functions of the infrastructure manager have been fulfilled.

(4) Requests by railway undertakings for access to, and supply of services in the service facility referred to in Section 12.1, Paragraph two of this Law shall be answered within a reasonable time limit set by the State Railway Administration. Such requests may only be refused if there are viable alternatives allowing the railway undertaking to provide the respective freight or passenger service on the same or alternative routes under economically acceptable conditions. This shall not oblige the operator of the service facility to make investments in resources or service facility in order to accommodate all requests by railway undertakings.

(5) Where requests by railway undertakings concern access to the service facility referred to in Section 12.1, Paragraph two, Clause 1, 2, 3, 4, 7, or 9 of this Law and managed by the operator of a service facility referred to in Paragraphs one and three of this Section, or the rights to receive services in such a service facility, the operator thereof shall justify in writing any decision on refusal and indicate viable alternatives in other service facilities.

(6) Where the operator of a service facility referred to in Section 12.1, Paragraph two of this Law encounters conflicts between different requests, it shall attempt to meet all requests in so far as possible. If no viable alternative is available and it is not possible to accommodate all requests for capacity for the relevant facility on the basis of demonstrated needs, the railway undertaking may complain to the State Railway Administration which shall examine the circumstances of the case and take action, where appropriate, to ensure that an appropriate part of the capacity is granted to the abovementioned railway undertaking.

(7) Where any service facility referred to in Section 12.1, Paragraph two of this Law has not been in use for at least two consecutive years and interest by railway undertakings for access to this facility has been expressed to the operator of that service facility on the basis of demonstrated needs, its owner shall notify of the lease or rent of the whole or part of the service facility for provision of services, unless the operator of the abovementioned service facility demonstrates that an ongoing process of reconversion prevents its use by any railway undertaking.

(8) Where any service facility referred to in Section 12.1, Paragraph two of this Law has not been in use for at least two consecutive years, the owner thereof may notify of the lease or rent of the whole or part of the service facility, or alienation. If within three months from such notification no bid is received, the operator of the service facility has the right to close the service facility, notifying the State Railway Administration and the public-use railway infrastructure manager thereof at least three months in advance.

[25 February 2016]

Section 13. Separation of the Functions of an Infrastructure Manager

(1) If a public-use railway infrastructure manager who does not perform the essential functions of a railway infrastructure manager is also a railway undertaking, then it shall ensure a separate accounting system (financial report) and publication thereof, as well as the opening and management of separate current accounts. The funds allocated by the State or local governments to the relevant public-use railway infrastructure manager may not be transferred to the railway undertaking and vice versa.

(2) If a public-use railway infrastructure manager who does not perform the essential functions of a railway infrastructure manager is also a railway undertaking, then it shall ensure that separate structural units perform such types of commercial activity.

(3) [23 September 2010 / See Paragraph 34 of the Transitional Provisions]

(4) The accounts for the area of activity connected with the provision of carriage by rail services and area of activity connected with the railway infrastructure management shall be kept in a way that allows for monitoring of the prohibition on transferring public, local government, and European Union funds paid to one area of activity to another area of activity, and for the monitoring of the use of income from charges for the services referred to in Section 12.1, Paragraph one of this Law and surpluses from other commercial activities.

[4 March 2004; 24 November 2005; 23 September 2010; 28 February 2013; 25 February 2016]

Section 13.1 Independence in Ensuring the Activities of the Performer of the Essential Functions of the Public-use Railway Infrastructure Manager

(1) The essential functions of a public-use railway infrastructure manager may not be performed by:

1) a public-use railway infrastructure manager which is also a railway undertaking;

2) a public-use railway infrastructure manager in cases where the railway undertaking is a company dependent on a group of companies, but the managing company of this group of companies (capital company) is the public-use railway infrastructure manager;

3) a public-use railway infrastructure manager in cases where it is a company dependent on a group of companies but the managing company of this group of companies (capital company) is the railway undertaking;

4) State institutions to which the performance of regulatory functions in the sector of rail transport has been entrusted.

(2) If the managing company of any group of companies (capital company) is a public-use railway infrastructure manager, but the company dependent on a group of companies is a railway undertaking, the essential functions of the public-use railway infrastructure manager shall be performed by another company dependent on this group of companies (capital company), which is not a railway undertaking itself and in accordance with the requirements laid down in this Section is independent in the performance of the essential functions of the public-use railway infrastructure manager. If there is no company dependent on a group of companies (capital company), other capital company or institution, which complies with the requirements of independence laid down in this Section, the Cabinet shall determine the performer of the essential functions of the public-use railway infrastructure manager.

(3) The costs for the performance of the essential functions of the public-use railway infrastructure manager shall be included in the charges for the use of the public-use railway infrastructure. The funding necessary for the performance of the essential functions shall be determined by the performer of the essential functions according to the charging scheme and in compliance with the general principles of financial management and staff management of the group of companies. The procedures for making the payments for the performance of the essential functions of the railway infrastructure manager shall be determined by the performer of the essential functions of the public-use railway infrastructure manager in the charge collection scheme.

(4) The independence of the performer of the essential functions of the public-use railway infrastructure manager shall be ensured, in compliance with the following provisions:

1) members of the board and executive employees of the performer of the essential functions of the public-use railway infrastructure manager, whose competence includes decision-making regarding the performance of the essential functions of the public-use railway infrastructure manager, may not be participants (shareholders) of any capital company which provides services of a railway undertaking, and may not take up office or otherwise be involved in any of the structures of the railway undertaking. This prohibition in respect of any office in the structures of any railway undertaking and obtaining of capital shares (stocks) of such undertakings shall remain in effect for two years after a member of the board or a manager whose competence includes decision-making regarding the performance of the essential functions of the public-use railway infrastructure manager has left office;

2) the personnel of the performer of the essential functions of the public-use railway infrastructure manager shall be provided with separate premises with protected access. The internal rules or contracts shall include requirements which anticipate that the contact by personnel with the railway undertakings in relation to the performance of the essential functions of the public-use railway infrastructure manager shall only be performed within the scope of official communication;

3) the performer of the essential functions of the public-use railway infrastructure manager shall ensure data confidentiality and confidentiality of the commercial information thereof which it has received from railway undertakings when performing its functions.

(5) If the performer of the essential functions of the public-use railway infrastructure manager is included in the same group of companies as the railway undertaking in which neither one of them is the managing company (capital company) of the group of companies, the independence of the performer of the essential functions of the public-use railway infrastructure shall be ensured in addition to the conditions referred to in Paragraph four of this Section, complying with the following conditions:

1) members of the board and executive employees of the performer of the essential functions of the public-use railway infrastructure manager, whose competence includes decision-making regarding the performance of the essential functions of the public-use railway infrastructure manager, may not be participants (shareholders) of any managing company (capital company) and may not take up office or otherwise be involved in any of the structures of the managing company (capital company);

2) members of the board of the performer of the essential functions of the public-use railway infrastructure manager shall be ensured with the rights to take decisions independently from the railway undertaking and the managing company (capital company) in respect of the essential functions of the public-use railway infrastructure manager. The managing company (capital company) is allowed to approve the annual accounts of the performer of the essential functions of the public-use railway infrastructure manager, but is not permitted to perform any activities in respect of the performance of the essential functions of the public-use railway infrastructure manager;

3) there are no justified suspicions regarding the professional independence or competence of a board member of the performer of the essential functions of the public-use railway infrastructure manager;

4) the performer of the essential functions of the public-use railway infrastructure manager shall formulate a programme for requirements of independence in which the duties and measures of specific employees shall be determined to be performed in order to prevent an unequal attitude towards railway undertakings and to ensure adequate control over the compliance therewith. Each year until 1 April the performer of the essential functions of the public-use railway infrastructure manager shall submit a notification to the State Railway Administration regarding the measures performed. The State Railway Administration shall publish this notification on the website thereof. After evaluation of the notification the State Railway Administration shall provide an opinion regarding the sufficiency of measures performed to ensure independence and indicate the shortcomings, if any, as well as the time periods within which these shortcomings should be rectified;

5) the performer of the essential functions of the public-use railway infrastructure manager has the required personnel at the disposal thereof;

6) the performer of the essential functions of the public-use railway infrastructure manager shall ensure the confidentiality of the commercial information which it has received from the managing company (commercial company) when performing its functions.

(6) The State Railway Administration shall monitor the compliance with the requirements of independence by the performer of the essential functions of the public-use railway infrastructure manager provided for in Paragraphs four and five of this Section and examine the complaints of railway undertakings regarding violations of these requirements of independence. In such cases the State Railway Administration may take a decision to perform measures for ensuring the relevant requirements of independence, determining a reasonable time period for the implementation thereof.

(7) If the performer of the essential functions of the public-use railway infrastructure manager is included in the same group of companies as the railway undertaking in which neither one of them is the managing company (capital company) of the group of companies, the State Railway Administration shall monitor the professional independence of the board members of the performer of the essential functions of the public-use railway infrastructure manager. The following measures shall be performed to ensure monitoring:

1) prior to the anticipated election of a member of the board of the performer of the essential functions of the public-use railway infrastructure manager the candidate for the member of the board shall submit a statement to the meeting of the State Railway Administration and participants (shareholders) of the performer of the essential functions of the public-use railway infrastructure manager that he or she complies with the criteria referred to in Paragraph four, Clause 1 and Paragraph five, Clauses 1 and 3 of this Section. If the State Railway Administration has a reason to believe that the information provided in the statement is false, i.e., the candidate for a member of the board does not comply with any of the criteria laid down in this Law, then it shall, within three weeks from the day of receipt of the statement, take a decision on non-compliance of the candidate for a member of the board with the abovementioned criteria and submit it without delay to the meeting of the participants (shareholders) of the performer of the essential functions of the public-use railway infrastructure manager and issue it to the candidate for a member of the board. The decision of the State Railway Administration with which the non-compliance of a candidate for a member of the board has been determined and which accordingly prevents the meeting of participants from electing this person to the board may be appealed in court within one month in accordance with the procedures laid down in laws and regulations. The appeal of the decision of the State Railway Administration shall not suspend the operation thereof;

2) a member of the board of the performer of the essential functions of the public-use railway infrastructure manager shall immediately inform the State Railway Administration regarding any attempts to influence him or her in respect of the performance of the essential functions of the public-use railway infrastructure manager;

3) if a member of the board of the performer of the essential functions of the public-use railway infrastructure manager no longer complies with the criteria laid down in Paragraph four, Clause 1 and Paragraph five, Clauses 1 and 3 of this Section, this member of the board has a duty to leave the office of a member of the board voluntarily. If he or she does not do so or if the relevant member of the board is not removed from office at the meeting of participants of the performer of the essential functions of the public-use railway infrastructure manager at its own initiative, the State Railway Administration has a duty to request from the participant (shareholder) of the performer of the essential functions of the public-use railway infrastructure manager that such member of the board is removed from office without delay. The participant (shareholder) and the removed member of the board of the performer of the essential functions of the public-use railway infrastructure manager may appeal this decision of the State Railway Administration in court in accordance with the procedures laid down in laws and regulations. The appeal of the decision of the State Railway Administration shall not suspend the operation thereof;

4) if it is intended to remove a member of the board from office before expiry of the term of office, prior to the meeting of participants (shareholders) at which it is planned to remove the member of the board from office, the participant (shareholder) of the performer of the essential functions of the public-use railway infrastructure manager shall provide the State Railway Administration with a detailed explanation of the reasons for removal. A member of the board may only be removed due to an important reason, which is considered to be a gross violation of authorisation, non-performance or inadequate performance of duties, the inability to manage a capital company, a loss of trust or the obstructions specified by law for holding or combining office. The State Railway Administration shall, without delay, but not later than within three weeks from the day of receipt of the justification from the participant (shareholder) of the performer of the essential functions of the public-use railway infrastructure manager, submit the decision to the meeting of participants (shareholders) of the performer of the essential functions of the public-use railway infrastructure manager with which a consent is given for the planned removal of the board member from office, or object, if there are justified doubts regarding the adequacy of the submitted reason for removal. The public-use railway infrastructure manager and the performer of the essential functions of the public-use railway infrastructure manager may appeal this decision of the State Railway Administration to a court in accordance with the procedures laid down in laws and regulations. The appeal of the decision of the State Railway Administration shall not suspend the operation thereof;

5) the participant (shareholder) of the performer of the essential functions of the public-use railway infrastructure manager does not need to receive a consent from the State Railway Administration if such member of the board is planned to be removed from the office before the expiry of the determined term of office on whom a security measure in the form of an arrest or prohibition on specific employment has been imposed in accordance with the Criminal Procedure Law that prevents him or her from fulfilling the duties of a member of the board of the performer of the essential functions of the public-use railway infrastructure manager, or if the rights of this member of the board to engage in a specific or all types of commercial activities or to take up an office in the administrative institutions of commercial companies has been deprived or restricted based on a ruling made in a criminal proceeding or administrative violation procedure. The participant (shareholder) of the performer of the essential functions of the public-use railway infrastructure manager shall, without delay, submit to the State Railway Administration the relevant justifying document regarding the security measures applied to the member of the board or removal or restriction of rights, which it shall take note of;

6) the participant (shareholder) of the performer of the essential functions of the public-use railway infrastructure manager shall, six months prior to expiry of the term of office, inform the State Railway Administration regarding appointment of the board member of the performer of the essential functions of the public-use railway infrastructure manager for a new term of office or substantiate his or her removal after the end of the term of office. The State Railway Administration shall, without delay, not later than within three weeks from the day of receipt of the justification from the participant (shareholder) of the performer of the essential functions of the public-use railway infrastructure manager, submit the decision to the meeting of participants (shareholders) of the performer of the essential functions of the public-use railway infrastructure manager with which a consent is given for the planned removal of the board member from office after expiry of the term of office, or object if there are doubts regarding the adequacy of the submitted justification. The participant (shareholder) of the performer of the essential functions of the public-use railway infrastructure manager and the board member of the performer of the essential functions of the public-use railway infrastructure manager regarding whom a decision of the State Railway Administration has been taken may appeal such decision of the State Railway Administration in court in accordance with the procedures laid down in laws and regulations. The appeal of the decision of the State Railway Administration shall not suspend the operation thereof.

[23 September 2010; 25 February 2016]

Section 13.2 Rights of the Performer of the Essential Functions of the Public-use Railway Infrastructure Manager to Request Information

(1) The performer of the essential functions of the public-use railway infrastructure manager, when fulfilling the functions laid down in the law, is entitled to request and receive from the public-use railway infrastructure manager who does not perform the essential functions of the manager and from railway undertakings the information required for the performance of the functions thereof irrespective of the status of accessibility to this information.

(2) The officials and employees of the performer of the essential functions of the public-use railway infrastructure manager, as well as persons invited to the activities of the performer of the essential functions of the public-use railway infrastructure manager are prohibited from publicly or otherwise disclosing information or information with restricted accessibility related to the performance of the functions thereof, which has become known to them when fulfilling the duties of service or otherwise regarding the activities of the public-use railway infrastructure manager who does not perform the essential functions of the manager, or of railway undertakings, including the commercial activities, except in cases specifically laid down in laws and regulations.

[14 April 2011]

Section 14. Suspension of Train Movement and Closing Lines

(1) In situations where, due to non-compliance with the Railway Technical Operations Regulations or other technical regulations, traffic safety, human life, health or the environment could be endangered or is endangered, the public-use railway infrastructure manager is entitled to temporarily suspend the movement of trains along the tracks as well as the operations of a station, or to reduce the railway capacity of the tracks in order to perform technical engineering work (restoration and repair) and to resume regular traffic as soon as possible. The infrastructure manager shall notify the railway undertakings, the State Railway Administration, the State Railway Technical Inspectorate (Section 33), and the relevant local government of suspending the train movement.

(2) If a private-use railway infrastructure manager fails to observe the Railway Technical Operations Regulations, the public-use railway infrastructure manager, on the basis of an order of the State Railway Technical Inspectorate, shall disconnect the tracks directly connected to the relevant private-use railway infrastructure.

(3) If the State public-use railway infrastructure manager considers it necessary to close an economically disadvantageous line, or a line whose technical condition cannot be maintained in compliance with the Railway Technical Operations Regulations due to insufficient resources and on which traffic safety cannot be guaranteed, the manager shall submit a substantiated proposal regarding the closing of this line to the Ministry of Transport, with the findings of the State Railway Technical Inspectorate attached.

(4) If closing of a public-use line is recommended, the Ministry of Transport shall request that the State Railway Administration, the relevant local governments, and the Ministry of Environmental Protection and Regional Development provide an opinion regarding this within two months. After receipt of the opinion, the Ministry of Transport shall prepare the necessary documents for the Cabinet to take a decision to close the line.

[4 March 2004; 17 July 2008; 16 December 2010; 25 February 2016]

Section 15. Public-Use Railway Infrastructure Land

(1) Land in the State public-use railway infrastructure right of way is the property of the State. Such State land may not be sold, gifted, or otherwise alienated. If railway infrastructure items owned by the State public-use railway infrastructure manager referred to in Section 6 of this Law are situated or are planned to be located on the railway right of way or in the land owned by or escheat to the State in the person of the Ministry of Transport, such land owned by or escheat to the State in the person of the Ministry of Transport shall be transferred to its possession by the Minister for Transport.

(2) The State public-use railway infrastructure manager referred to in Section 6 of this Law may transfer for use the land owned by or escheat to the State transferred to its possession (Paragraph one of this Section), or encumber with servitudes for the purpose of constructing buildings, structures, surface and underground communications systems, or for performing other economic activities. In such cases the State public-use railway infrastructure manager shall act in the name of the State. A decision on leasing with the right of superficies of the land owned by or escheat to the State referred to in this Paragraph shall be taken by the Cabinet. The Cabinet shall issue regulations regarding the transfer for use of the land owned by or escheat to the State referred to in this Paragraph, or encumbrance with servitude for the purpose of constructing buildings, structures, surface and underground communications systems, or for performing other economic activities.

(3) The State public-use railway infrastructure manager and the operator of a service facility shall have servitude rights over land owned by other legal and natural persons on which railway infrastructure items are located. The servitude shall be established in accordance with the procedures laid down in the Law. The user of the land shall pay compensation to its owner for the servitude in accordance with their agreement, but not more than five percent annually of the cadastral value of the land.

(4) The State public-use railway infrastructure manager, in conformity with the laws and other laws and regulations enacted regarding land matters, has the right to cross an area of land which is adjacent to the right of way and not owned by it in order to have access to the infrastructure items.

(5) The State in the person of the Ministry of Transport shall have the pre-emption rights for the land and other immovable property in the State public-use railway infrastructure right of way.

[25 February 2016 / The new wording of Section shall come into force on 1 October 2016. See Paragraph 46 of Transitional Provisions]

Section 16. Railway Right of Way

(1) The boundaries of the railway right of way in spatial plans shall be determined in compliance with current building standards in effect for the relevant construction facility.

(2) The draft regulations for use of the railway right of way shall be prepared by the Ministry of Transport and approved by the Cabinet.

(3) In cases where the railway right of way overlaps with another type of restricted zone or a protective zone, the most stringent requirements and the greatest minimal width shall be in effect. All types of activity in these areas shall be harmonised by the interested institutions.

(4) A railway infrastructure manager is entitled to change (reduce) the boundaries of the railway right of way and to waive the right to use the land taking into account the relevant laws and regulations and building standards.

[4 March 2004]

Section 17. Restrictions on Activities in the Railway Right of Way

(1) Other legal and natural persons may carry out any type of activity within the railway right of way only with the permission of and under the supervision of the railway infrastructure manager.

(2) If in connection with permitted construction work, renovations and repairs or other activities by legal and natural persons the reconstruction of railway infrastructure objects becomes necessary, this shall be performed and financed by the interested party.

(3) Any placement, transfer, and renovation of communications in the railway right of way must not diminish the operational quality of the railway infrastructure objects and traffic safety.

(4) Communications facilities existing in the railway right of way shall be maintained by their owner.

Section 18. Railway Protective Zones

(1) In accordance with the Law on Protective Zones, railway protective zones shall be formed in order to protect the railway from undesirable external effects, safeguard people and the environment from harmful effects of the railway and also ensure effective and safe railway operation and opportunities for development.

(2) The railway protective zone shall be maintained by the relevant railway infrastructure manager from his own resources, but if the rights for the use of this land have been transferred to another person - by the land user.

(3) The maintenance of the railway infrastructure and the actions of the owner of the land in the protective zone must not deteriorate the hydrological conditions in the protective zone, nor disturb the functioning of the protective zone or land amelioration systems or structures that adjoin or intersect it.

(4) The owner or the user of the protective zone of the railway must not deny the use of roads or access ways to the railway infrastructure manager in order that a specialised railway infrastructure maintenance vehicle may have access to the railway infrastructure objects so that maintenance work may be carried out and supervised. In exercising rights to access railway infrastructure objects, the obligation of the railway infrastructure manager shall be to do so, as much as possible, with care and not damaging planted fields or cutting down trees.

(5) The relevant railway infrastructure manager shall compensate for all losses which have been incurred by the property owner due to actions of a railway infrastructure manager.

Section 19. Stations, Passing and Stopping Places

(1) The station is an aggregate of railway infrastructure objects which occupies a designated part of the railway right of way and ensures the performance of carriage by rail operations.

(2) Passing places are technological switching places in one-way lines at which location of the track is intended for the needs of crossing and overtaking of train to increase train throughput capacity of a railway line.

(3) Stopping places are locations where a train stops. They have no track spread and they are intended only for the boarding and alighting of passengers.

(4) [6 October 2005]

(5) Stations, passing and stopping places which are public-use railway infrastructure objects shall be opened, closed and their names assigned in accordance with the procedures laid down in the Cabinet.

[4 March 2004; 6 October 2005]

Section 20. Level Crossings and Crossings

(1) A level crossing is the intersection of a rail line with a motor road on one level equipped with such devices as are required to guarantee the safety of railway and motor vehicle traffic.

(2) Level crossings shall be classified, depending on the characteristics of the motor roads that intersect them, as follows:

1) public-use level crossings (State motor roads, local government roads or city streets intersect the tracks);

2) individual user level crossings (roads belonging to other persons intersect the tracks, and such level crossing is used in accordance with an agreement entered into with the relevant railway infrastructure manager).

(3) A crossing is a specially constructed and equipped location where pedestrians or livestock cross tracks.

(4) Crossings shall be classified as follows:

1) public-use crossings (installed to satisfy community needs, by which pedestrians and livestock cross tracks);

2) individual user crossings (installed for private use after a request is made by an individual person and used in accordance with an agreement entered into with the relevant railway infrastructure manager).

(5) Installation and equipping of new individual service level crossings and crossings shall be carried out at the expense of the interested party.

(6) Installation and maintenance of public-use level crossings and crossings shall be financed from the funds of the funding of the railway infrastructure and the State motor vehicle road fund.

(7) The Cabinet shall determine the procedures for installing, equipping, servicing and closing of level crossings and crossings.

[4 March 2004; 17 July 2008; 1 December 2009]

Section 21. Obligation to Verify Compliance

The construction of engineering structures and communication systems, which intersect tracks at various levels, shall be verified to be in compliance with the railway construction regulations as issued by the Cabinet, in accordance with the procedures laid down therein.

Section 22. Construction Procedures of Railway Infrastructure Objects

Railway infrastructure objects are specialised structures in accordance with the Construction Law. The procedures for design and construction of railway infrastructure objects, as well as the procedures by which they shall be accepted for service shall be determined by the Cabinet.

[14 June 2007]

Section 22.1 Acceptance of the Actions Envisaged in Relation to Railway Structures and Objects

If in accordance with the law On Environmental Impact Assessment an environmental impact assessment statement has been prepared and an opinion of the competent authority has been received in relation to establishment of the State public-use railway infrastructure objects or making of essential changes therein and if such facility is included in the trans-European transport network (TEN-T) and its list of priority projects, the Cabinet shall take a decision to accept the actions envisaged, assessing the opinion of the relevant local governments.

[25 February 2016]

Chapter III
Railway Undertaking

Section 23. Principles of Operation for a Railway Undertaking

(1) A railway undertaking shall carry on its operations in accordance with this Law, other laws and laws and regulations.

(2) A railway undertaking shall be administratively and economically independent in its operations, and also in determining its carriage by rail services and carriage charges.

(3) [25 February 2016]

(4) The railway undertaking as a commercial company (regardless of the ownership) shall be managed according to the principles which apply to commercial companies. This shall also apply to the public service obligations imposed on the railway undertaking by the State and to public service contracts which it concludes with the competent authorities of the State.

(5) The railway undertaking shall design its business plans including their investment and financing programmes. Such plans shall be designed to achieve the financial equilibrium of the railway undertaking and to achieve other technical, commercial and financial management objectives. The plans shall also indicate the means of attaining those objectives.

(6) On the basis of the general policy guidelines issued by the State and taking into account national plans and contracts (which may be multiannual), also investment and financing plans, the railway undertaking shall, in particular, be free to:

1) establish their internal organisation in compliance with the provisions of Section 13.1 of this Law;

2) control the supply and marketing of services and fix their pricing;

3) take decisions on staff, assets and own procurement;

4) expand their market share, develop new technologies and new services, and implement any innovative management techniques;

5) establish new activities in fields associated with the railway economic activity.

(7) Paragraph six of this Section shall be applied without prejudice to the provisions of Regulation (EC) No 1370/2007 of the European Parliament and of the Council of 23 October 2007 on public passenger transport services by rail and by road and repealing Council Regulations (EEC) Nos 1191/69 and 1107/70 (hereinafter - Regulation No 1370).

(8) The railway undertaking shall prepare and publish profit and loss statements and balance sheets separately for economic activity relating to the provision of rail freight services and for activities relating to the provision of rail passenger services. The funds paid for activities relating to the provision of carriage services as public-service remits shall be shown separately in accordance with Article 7 of Regulation (EC) No 1370/2007 in the relevant accounts and shall not be transferred to activities relating to the provision of other transport services or any other economic activity.

(9) The accounts for the area of activity connected with the provision of rail freight services and area of activity connected with the provision of rail passenger services shall be kept in a way that allows to monitor the compliance with the prohibition on transferring public, local government, and European Union funds paid to one area of activity to another area of activity.

[23 November 2000; 4 March 2004; 14 June 2007; 25 February 2016]

Section 24. Procedures for Entering into Contracts for the Public Procurement of Carriage by Rail with the State or Local Governments

(1) State or local government contracts for the public procurement of carriage by rail shall be entered into in accordance with the requirements of this Law and other laws and regulations.

(2) The State or the local governments (hereinafter, also the ordering party) shall, in the interests of the community, be entitled to require that the railway undertaking, in the fulfilment of public procurement of carriage by rail, ensures that:

1) carriage by rail service complies with the ordering party's required criteria regarding speed, regularity, frequency, volume and other specifications;

2) [12 June 2008];

3) the provision of services is adjusted to actual market demand and other factors.

(3) A railway undertaking shall fulfil public procurement of carriage by rail on a contractual basis.

(4) [12 June 2008]

(5) A draft contract for public procurement of carriage by rail shall be prepared by the ordering party in agreement with a railway undertaking, interested ministries and institutions or with the relevant local government.

(6) A draft contract for public procurement of freight carriage by rail shall be submitted for coordination to the State Railway Administration.

(7) [12 June 2008]

(8) [4 March 2004]

(9) In the event a contract for public procurement of carriage by rail is entered into, the railway undertaking shall open a separate current account for payments for the fulfilment of the public procurement of carriage by rail and such funds shall be shown separately in accounting documents. The railway undertaking is not entitled to use funds which have been paid for public procurement of carriage by rail for other transport services which he or she provides or other types of commercial activities which he or she performs.

(10) Contracts for public procurement of freight carriage by rail as have been entered into shall be registered and their fulfilment shall be controlled by the State Railway Administration.

(11) [14 June 2007]

[6 February 2003; 4 March 2004; 24 November 2005; 14 June 2007; 12 June 2008]

Section 25. Content of a Contract for the Public Procurement of Carriage by Rail

(1) A contract for the public procurement of carriage by rail, which is entered into in accordance with Section 24 of this Law, shall specify:

1) type of services to be rendered and their technical specifications;

2) arrangements regarding the provision of services to be rendered;

3) payment to the railway undertaking for services rendered or compensation for losses incurred in connection with the services rendered;

4) arrangements regarding payments and compensation;

5) responsibility for the performance of the contract;

6) carriage charges (railway tariff) determined by the ordering party and discounts for such.

(2) A contract for the public procurement of carriage by rail may include provisions about State or local government investments and railway undertaking loan guarantees, the obligations of the railway undertaking, as a result of investments, to reduce the cost of services provided, to improve the quality of services and to renew rolling stock, and also other rights and obligations of the parties.

[4 March 2004]

Section 25.1 Organisation of Carriage by Rail of Military Freight

(1) Prior to the entering into a contract regarding carriage by rail of military freight intended for the support of foreign armed forces, or in cases where the ordering party of carriage by rail for military freight intended for the support of the National Armed Forces is not the National Armed Forces or the Ministry of Defence, the ordering party shall be required to receive authorisation from the Ministry of Defence. The ordering party has a duty to submit a copy of the document from the Ministry of Defence certifying authorisation to the railway undertaking prior to the entering into the contract in question.

(2) The Ministry of Defence is entitled to request that the railway undertaking when fulfilling the public procurement of carriage by rail of military freight and the public-use railway infrastructure manager, within the competence thereof, ensures the compliance of the carriage by rail services with the criteria specified by the ordering party.

(3) In case of danger to the State, the Cabinet has the right to decide on organisation and performance (including loading and unloading) of priority carriage by rail of military freight necessary for the State defence needs.

[23 October 2010; 25 February 2016]

Section 25.2 Passenger Services the Main Purpose of which is to Transport Passengers between Stations Located in Different European Union Member States

(1) A railway undertaking the main purpose of the provided passenger services of which is to transport passengers between stations located in different European Union Member States, when providing such service, has the right to pick up and set down passengers along the relevant route in the territory of Latvia at any station or stopping place. These rights of the railway undertaking may be restricted if the economic equilibrium of contracts for the public procurement of carriage by rail entered into by the State or local government is compromised.

(2) Upon determining whether the principal purpose of the passenger service provided by a railway undertaking is to transport passengers between stations located in different European Union Member States and whether such service compromises the economic equilibrium of the contract for public procurement of carriage by rail entered into by the State or local government, the Commission Implementing Regulation (EU) No 869/2014 of 11 August 2014 on new rail passenger services shall also be applied in which the designated regulatory body is the State Railway Administration.

(3) The fact whether the principal purpose of the passenger service provided by a railway undertaking is to transport passengers between stations located in different European Union Member States or not shall be determined by the State Railway Administration, if an application from the relevant railway undertaking, such competent authority that has entered into a State or local government contract for public procurement of carriage by rail, or an application from such railway undertaking which performs the contract for public procurement in the territory of Latvia in the relevant route for international passenger service has been received.

(4) Whether the economic equilibrium of a State or local government contract for the public procurement of carriage by rail would be compromised shall be determined by the State Railway Administration on the basis of an objective economic analysis and based on pre-determined criteria, if an application from such competent authority that has entered into a State or local government contract for the public procurement of the provision of rail passenger services, or an application from any other interested competent authority with the right to limit access to the railway infrastructure, or an application from such railway undertaking which performs the contract for public procurement in the territory of Latvia in the relevant route for international passenger service, or an application from a railway infrastructure manager, has been received.

(5) The competent authority which has entered into a State or local government contract for the public procurement of the provision of rail passenger services and railway undertakings providing public transport services shall provide the State Railway Administration with the information necessary for taking a justified decision in the specific case. The State Railway Administration shall consider this information and, where necessary, shall ask for the necessary information from other relevant persons and initiate consultations with them within one month after receipt of such information. Where necessary, the State Railway Administration shall consult with all the relevant persons. The State Railway Administration shall inform of the decision taken in the specific case in accordance with the procedures laid down in the Administrative Procedure Law, but not later than within six weeks from receiving all the relevant information.

(6) The State Railway Administration shall justify the decision taken. The decision shall include the time periods and conditions according to which the competent authority which has entered into a State or local government contract for the public procurement of the provision of rail passenger services, a railway undertaking which performs the contract for the public procurement in the territory of Latvia in the relevant route for international passenger service, a railway infrastructure manager, or a railway undertaking which seeks to access the infrastructure may request the State Railway Administration to initiate the administrative procedure de novo.

[25 February 2016]

Chapter IV
Coordination of the Movement of Rolling Stock and Allocation of the Public-use Railway Infrastructure Capacity

[4 March 2004]

Section 26. Coordination of the Movement of Rolling Stock

(1) Public-use railway infrastructure managers shall coordinate the movement of trains and other rolling stock over their tracks, and also in the junctions with railway infrastructure tracks which belong to other persons.

(2) If a railway undertaking performs carriage over the tracks belonging to two or more railway infrastructure managers, the relevant railway infrastructure managers have a duty to co-operate.

Section 27. Allocation of Public-use Railway Infrastructure Capacity

(1) The performer of the essential functions of the public-use railway infrastructure manager shall be responsible for the allocation of railway infrastructure capacity and shall, in particular, ensure that the infrastructure capacity is granted in a fair and non-discriminatory manner.

(2) Requests for infrastructure capacity may be made by applicants. To be able to use infrastructure capacity, the applicants who are not railway undertakings shall appoint a railway undertaking that concludes an agreement with the infrastructure manager in accordance with Section 27.1 of this Law. The applicant may request that the infrastructure manager concludes an agreement granting the applicant itself the right to pay for the use of railway infrastructure.

(3) The priority of the allocation of the public-use railway infrastructure capacity is to those carriage by rail services that are provided on the basis of State or local government contract for public procurement of carriage by rail, as well as for the support of foreign armed forces or National Armed Forces, and to services which fully or in part are provided by using the State public-use railway infrastructure intended or constructed for special purposes (express, freight and similar carriage). A railway infrastructure manager may request compensation for such losses as are incurred by him or her in observing specified carriage priorities.

(4) The performer of the essential functions of the public-use railway infrastructure manager may set requirements with regard to applicants to ensure the justified expectations regarding future revenue of the public-use railway infrastructure manager and use of the infrastructure. Such requirements shall be appropriate, transparent, and non-discriminatory. They may only include the provision of a financial guarantee not exceeding an appropriate level proportional to the scope of carriage provided for the applicant, and assurance of the capability of the applicant to prepare conforming bids for infrastructure capacity. Upon determining the abovementioned requirements, the criteria included in Commission Implementing Regulation (EU) 2015/10 of 6 January 2015 on criteria for applicants for rail infrastructure capacity and repealing Implementing Regulation (EU) No 870/2014 (hereinafter - Implementing Regulation (EU) 2015/10) shall be observed. The regulatory body determined in Implementing Regulation (EU) 2015/10 shall be the State Railway Administration.

(5) Where an applicant plans to request a railway infrastructure capacity to provide rail transport service the principal purpose of which is to transport passengers between stations located in different European Union Member States, it shall inform the performer of the essential functions of the infrastructure manager, the infrastructure manager, and the State Railway Administration. In order to assess whether the principal purpose of the transport service provided by the railway undertaking is to transport passengers on a route between stations located in different Member States, and what the potential economic impact on existing State or local government contract for the public procurement of carriage by rail is, the State Railway Administration shall ensure that the competent authority that has concluded a State or local government contract for the public procurement of carriage by rail and the railway undertaking performing such contract for the public procurement in the territory of Latvia in the relevant route for international passenger service, and also any other interested competent authority having the right to limit access to the railway infrastructure is informed.

(6) Applications regarding the request for capacity shall be examined in conformity with the procedures stipulated by the Cabinet referred to in Paragraph ten of this Section, as well as with the public-use railway infrastructure capacity available and, in conformity with the priorities specified in the law, already allocated.

(7) The applicants may be granted the right to use infrastructure capacity for a maximum duration of one working timetable period. The performer of the essential functions of the railway infrastructure manager, and also the infrastructure manager, if its area of activity is concerned, and the applicant may enter into a framework agreement referred to in Section 27.2 of this Law for the use of capacity on the relevant railway infrastructure for a longer term than one working timetable period. The applicant who is a party to the framework agreement shall submit its request for infrastructure capacity according to the abovementioned agreement.

(8) The applicant who has been granted a specific infrastructure capacity has no right to transfer such capacity to others in return for payment or free of charge, except for the case when this capacity is used by the railway undertaking upon assignment from the applicant which is not a railway undertaking. A different transfer of infrastructure capacity is prohibited and leads to exclusion from the further infrastructure capacity allocation process.

(9) Where, after coordination of the requested capacity and consultation with applicants, it is not possible to satisfy requests for infrastructure capacity adequately, the performer of the essential functions of the public-use railway infrastructure manager shall immediately declare that the relevant section of infrastructure is congested. This shall also be done for infrastructure the capacity of which may become insufficient in the near future.

(10) The Cabinet shall determine:

1) the procedures for scheduling and coordinating the working timetable, allocating public-use railway infrastructure capacity (as well as the actions of the performer of the essential functions of the infrastructure manager and the infrastructure manager if the infrastructure is congested) and the procedures for cooperation in allocating the infrastructure capacity on more than one network;

2) the content of application for performing carriage and notification of performing maintenance work, the documents to be appended thereto, the procedures for examination thereof;

3) content of the capacity enhancement plan;

4) actions for organising train movement, also in case of disruptions and in case the infrastructure capacity is requested after development of the working timetable;

5) the principles according to which the criteria is developed to determine the failure to use paths or part of them.

(11) The performer of the essential functions of the public-use railway infrastructure manager may, taking into account the Cabinet regulations referred to in Paragraph ten of this Section, develop and approve the capacity allocation scheme to be published on its website and submitted to the public-use railway infrastructure manager for inclusion in the network statement.

(12) The State Railway Administration shall examine disputes between an owner of a public-use railway infrastructure, a public-use railway infrastructure manager, a performer of the essential functions of the public-use railway infrastructure manager, a railway undertaking, and the applicant regarding allocation of the capacity of a public-use railway infrastructure, as well as regarding the decision of a performer of the essential functions of the public-use railway infrastructure manager to designate trains to a specific railway undertaking, to refuse to allocate infrastructure capacity or on the regulations of capacity offers, and take decisions binding to the parties. Complaints regarding the allocation of public-use railway infrastructure capacity or regarding refusal to allocate infrastructure capacity may be submitted within one month after publication of the capacity allocation plan or notification of the refusal to allocate infrastructure capacity.

(13) The State Railway Administration shall take a decision on a dispute in relation to the allocation of infrastructure capacity, regarding refusal to allocate infrastructure capacity, or regarding the regulations of capacity offers within the time period referred to in Section 31, Paragraph 2.2 of this Law, and the owner of a public-use railway infrastructure, the public-use railway infrastructure manager, the performer of the essential functions of the public-use railway infrastructure manager, the railway undertaking, and the applicant may appeal it in court in accordance with the procedures laid down in the law. The State Railway Administration shall take a decision with which it confirms that the decision of the performer of the essential functions of the public-use railway infrastructure manager does not need amending, or shall request the amendment of the decision in accordance with its instructions, but in respect of discriminatory measures shall decide which measures should be performed in order to prevent the recurrence of such violations.

[25 February 2016]

Section 27.1 Agreements of the Railway Undertaking and the Railway Infrastructure Manager

The railway undertaking shall conclude the necessary agreements with the manager of the public-use railway infrastructure used. The conditions of such agreements shall be non-discriminatory and transparent.

[25 February 2016]

Section 27.2 Framework Agreement

(1) The performer of the essential functions of the public-use railway infrastructure manager, and also the infrastructure manager, if its area of activity is concerned, and the applicant may enter into a framework agreement. It shall specify the characteristics of the infrastructure capacity required by and offered to the applicant over a period of time exceeding one working timetable period. The framework agreement shall not specify a train path in detail, but shall meet the legitimate commercial needs of the applicant. Such a framework agreement shall be subject to prior approval of the State Railway Administration.

(2) The framework agreement shall not be such as to preclude the use of the relevant infrastructure by other applicants or public-use railway infrastructure manager.

(3) The framework agreement shall allow for the amendment or limitation of its terms to enable better use to be made of the railway infrastructure. The text of a framework agreement may contain penalties should it be necessary to modify or terminate the agreement.

(4) The framework agreement shall, in principle, cover a time period of five years, renewable for time periods equal to their original duration. The performer of the essential functions of the public-use railway infrastructure manager may agree to a shorter or longer time period in specific cases. Any period longer than five years shall be justified by the existence of commercial contracts, specialised investments or risks.

(5) For services using the specialised infrastructure referred to in Section 27.3 of this Law which requires substantial and long-term investments, duly justified by the applicant, the framework agreement may be entered into for a time period of 15 years. Any time period longer than 15 years shall be permissible only in exceptional cases, for example, in relation to a large-scale, long-term investment, and particularly where such investment is covered by contractual commitments, also a multiannual amortisation plan. In such exceptional cases, the text of the framework agreement may set out the detailed characteristics of the capacity which is to be provided to the applicant for the duration of the framework agreement. The abovementioned characteristics may include the frequency, volume, and quality of train paths. The performer of the essential functions of the public-use railway infrastructure manager may reduce reserved capacity which, over a time period of at least one month, has been used less than the threshold quota provided for in the network statement, and this has not happened due to non-economic reasons beyond the applicant's control.

(6) While respecting commercial confidentiality, the general nature of each framework agreement shall be made available to any interested party.

[25 February 2016]

Section 27.3 Specialised Infrastructure

(1) Infrastructure capacity shall be considered to be available for the use of all types of services which conform to the characteristics necessary for operation on the train path.

(2) Where alternative routes are available, the performer of the essential functions of the public-use railway infrastructure manager may, after consultations with the interested parties, designate a particular infrastructure for use by specific types of carriage. Where such designation has occurred, the performer of the essential functions of the public-use railway infrastructure manager may give priority to a specific type of carriage when allocating infrastructure capacity. Such designation shall not prevent the use of this infrastructure by other types of carriage when infrastructure capacity is available.

(3) If infrastructure has a status of a specialised infrastructure, it shall be indicated in the network statement.

[25 February 2016]

Section 28. Network Statement

(1) The public-use railway infrastructure manager shall, after consultations with the interested parties, develop and publish a network statement to be obtained for a fee which shall not exceed the publication costs of the abovementioned statement. The network statement shall be published in at least the official language and another official language of the European Union. The content of the network statement shall be available free of charge in electronic format on the website of the public-use railway infrastructure manager. The network statement shall also be available on a website created jointly by the relevant infrastructure managers within the framework of their cooperation, if the traffic crosses more than one network of the rail system within the European Union.

(2) The network statement shall set out the nature of the infrastructure which is available to railway undertakings, and contain information setting out the conditions for access to the relevant railway infrastructure. The network statement shall also contain information setting out the conditions for access to service facilities connected to the network of the infrastructure manager and for supply of services in these facilities or indicate a website where such information is made available free of charge.

(3) The content of the network statement shall be determined by the Cabinet.

(4) The network statement shall be kept up to date and amended as necessary.

(5) The network statement shall be published at least four months in advance of the deadline for requests for infrastructure capacity.

(6) The charging system (scheme) and charging rules applied to the international freight carriage from and to third countries whose track gauge is 1520 millimetres shall be published by the performer of the essential functions of the public-use railway infrastructure manager on its website at least two months prior to entry into effect of the relevant infrastructure charges, and they shall not be included in the network statement.

[25 February 2016]

Chapter V
State Administration in the Railway Transport Sector

Section 29. Competence of the Ministry of Transport in the Railway Transport Sector

The State policy with respect to railway transport sector shall be implemented by the Ministry of Transport in conformity with the transport policy planning documents.

[25 February 2016]

Section 30. State Railway Administration

(1) State administration of railway transport shall be implemented by the State Railway Administration.

(2) The State Railway Administration is subordinate to the Ministry of Transport, which is realised in the form of supervision.

(21) Each year the State Railway Administration shall grant funding from the funding resources specified in Section 10, Paragraph two, Clauses 1 and 2 of this Law in the amount of 0.34% from the total amount of the funding of the railway infrastructure referred to in Section 10, Paragraph two, Clauses 1 and 2 of this Law for the previous year.

(22) The public-use railway infrastructure manager shall allocate the funding provided for in Paragraph 2.1 of this Section in parts - once per quarter until the 10th date of the first month of the quarter in question, transferring part of the funding provided for in Section 2.1 of this Law to the account of the State Railway Administration. One-quarter of the planned funding provided for in Paragraph 2.1 of this Section shall be transferred for each of the first three quarters. The total amount of this funding shall be clarified when performing the final payment in the relevant year.

(3) [4 March 2004]

(4) The State Railway Administration shall be managed by a Director, who shall be nominated by the Minister for Transport and appointed and released from his or her position by the Cabinet. Persons who comply with the requirements of the State Civil Service Law and have an appropriate competence and relevant experience in the field of railway may be candidates for the position of the Director of the State Railway Administration.

(41) Neither the Cabinet, nor the Minister for Transport, or other persons may give instructions to the Director of the State Railway Administration and other persons in cases related to performance of the complaint handling function and market monitoring function of the State Railway Administration in the field of railway, and also in relation to staffing. In the abovementioned cases, the State Railway Administration need not coordinate the statement with the Ministry of Transport.

(5) The regulatory functions of the State Railway Administration and the functions of examination of the disputed administrative acts and actual actions shall be performed by separate structural units.

[11 November 1999; 10 April 2003; 4 March 2004; 1 December 2009; 23 September 2010; 25 February 2016]

Section 31. Functions of the State Railway Administration

(1) The State Railway Administration shall fulfil the following functions:

1) [23 November 2000];

2) coordinate draft contracts for public procurement of carriage by rail;

3) after contracts for public procurement of freight carriage by rail have been entered into, register them and control the implementation of such contracts;

4) [23 November 2000];

5) provide to the Minister for Transport information requested regarding the activities of and decisions taken by the Administration;

6) within the scope of its competence, promote effective and rational operations by railway undertakings;

7) [23 November 2000];

8) handle the complaints of the applicant if it believes that it has been unfairly treated, discriminated against or is in any other way aggrieved, and in particular complaints regarding the decisions taken by the public-use railway infrastructure manager, the performer of the essential functions of the infrastructure manager, or, where appropriate, the railway undertaking, or the operator of a service facility concerning:

a) the network statement in its provisional and final versions;

b) the criteria referred to in the network statement;

c) the capacity allocation process and its result;

d) the charging and charge collection schemes;

e) the payment of infrastructure charges in such volume or structure which is, or may be, required from the applicant;

f) arrangements for access in accordance with Sections 5.1, 12.1, 12.2, and 25.2 of this Law;

g) access to and charging for services in accordance with Sections 12.1 and 12.2 of this Law;

9) monitor the competitive situation in the rail services markets and shall, in particular, control the issues laid down in Clause 8, Sub-clauses "a", "b", "c", "d", "e", "f", and "g" of this Paragraph on its own initiative and with a view to preventing discrimination against applicants, and shall check whether the network statement contains discriminatory clauses or creates discretionary powers for the public-use railway infrastructure manager or the performer of the essential functions of the infrastructure manager that may be used to discriminate against applicants;

10) develop railway environmental protection policy, which shall be approved by the Minister for Transport, develop and approve an action programme, and maintain a self-operating system for regulation of environmental protection;

11) evaluate the risks that the railway infrastructure poses to the health of people and the environment, and implement the measures required to reduce such risks;

12) perform infrastructure registration and take decisions to register a public-use railway infrastructure as a private-use railway infrastructure in the case referred to in Section 5, Paragraph four of this Law;

13) perform the registration of rolling stock in accordance with the procedures prescribed by the Cabinet;

14) issue railway undertaking licences for the performance of carriage by rail;

15) provide opinions regarding separate public-use railway sections or the closing of lines in accordance with Section 14, Paragraph four of this Law;

16) publish all the decisions taken in respect of market regulation;

17) exchange information regarding its work and decision-making principles and practices with the relevant institutions of other European Union Member States;

18) monitor the compliance with the requirements of independence of the public-use railway infrastructure manager provided for in Section 13.1, Paragraphs four and five of this Law in implementation of the essential functions, examine the complaints of railway undertakings referred to in Paragraph six of this Section regarding violations of the requirements of independence and take appropriate decisions;

19) in the cases and in accordance with the procedures laid down in Section 13.1, Paragraph seven of this Law monitor changes in the composition of the board of the performer of the essential functions of the public-use railway infrastructure manager;

20) take decisions to divide the funding resources provided for heritage railway and to approve reports on utilisation of the funding, and control the utilisation of such funding resources for the intended purpose;

21) ensure that charges set by the performer of the essential functions of the infrastructure manager conform to the charging rules provided for in this Law and are non-discriminatory, monitor negotiations between applicants and the performer of the essential functions of the infrastructure manager concerning the level of infrastructure charges, and intervene if negotiations are likely to violate the requirements of this Law;

22) regularly and, in any case, at least every two years, consult representatives of users of the rail freight and passenger services, to take into account their views on the rail market.

(2) The State Railway Administration, upon fulfilling its functions in accordance with this Law and other laws, shall comply with the State policy in the field of railway transport and the national transport development programme.

(21) The State Railway Administration has the right to carry out audits or to initiate external audits with infrastructure managers, operators of service facilities and, where relevant, railway undertakings, to verify compliance with the accounting separation provisions laid down in Section 13, Paragraphs one and four, and Section 23, Paragraphs eight and nine of this Law. The accounting information to be submitted to the State Railway Administration upon request shall be determined by the Cabinet. Without prejudice to the powers of the national authorities responsible for State aid issues, the State Railway Administration may also draw conclusions from this information concerning State aid issues. It shall report to the abovementioned authorities regarding such conclusions.

(22) The State Railway Administration shall consider any complaints and, as appropriate, shall ask for the relevant information and initiate consultations with all relevant parties, within one month from receipt of the complaint. It shall decide on any complaints, take measures to remedy the situation, and inform the relevant parties of its reasoned decision within a pre-determined, reasonable time, and, in any case, within six weeks from receipt of all the relevant information. The State Railway Administration shall, where appropriate, decide on its own initiative on measures to prevent discrimination against applicants, market distortion, and any other undesirable developments in these markets, in particular with reference to the issues referred to in Clause 8, Sub-clauses "a", "b", "c", "d", "e", "f", and "g" of this Paragraph.

(23) A decision of the State Railway Administration shall be binding on all parties covered by that decision.

(24) In case of the double value of percentage referred to in Article 7(1) of Commission Implementing Regulation (EU) 2015/909 of 12 June 2015 on the modalities for the calculation of the cost that is directly incurred as a result of operating the train service, the State Railway Administration in the case referred to in Paragraph one, Clause 9 of this Section may perform the inspection of calculation of the direct costs in all network in a simplified manner.

(3) Decisions of the State Railway Administration may be appealed to the Court in accordance with the procedures laid down in laws and other laws and regulations. A decision of the State Railway Administration to issue a licence for the performance of carriage by rail freight, a decision to register a railway infrastructure (tracks), a decision to register railway rolling stock, a decision taken when performing the functions referred to in Paragraph one, Clause 8 or 9 of this Section, a decision to distribute public-use railway infrastructure capacity or to allocate capacity, to refuse to allocate capacity or on the conditions of capacity offers, a decision to ensure the independence of the performer of the essential functions of the public-use railway infrastructure manager, including members of the board and executive employees thereof whose competence includes taking of decisions to perform the essential functions of the public-use railway infrastructure manager, a decision to divide the funding resources provided for heritage railway, as well as an appeal regarding a decision to examine a dispute and prevent discrimination shall not suspend its operation.

[23 November 2000; 10 April 2003; 4 March 2004; 6 October 2005; 7 May 2009; 23 September 2010; 6 November 2013; 25 February 2016]

Section 32. Right of the State Railway Administration to Request Information

(1) The State Railway Administration is entitled to request and receive the information necessary to fulfil its functions from the public-use railway infrastructure manager, the performer of the essential functions of the infrastructure manager, the applicant, the operator of the service facility, any involved third person, and railway undertakings.

(2) The information requested shall be provided within a reasonable period of time determined by the State Railway Administration and not exceeding one month. In exceptional cases, the State Railway Administration authorises a time-limited extension, which shall not exceed two additional weeks. Information to be supplied to the State Railway Administration shall include all data which is required by the State Railway Administration within the framework of its complaint handling function and in its function of monitoring the competition in the rail services markets in accordance with Section 31, Paragraph one, Clause 9 of this Law. The abovementioned information shall include data which are necessary for statistical and market observation purposes.

(3) When carrying out audits with infrastructure managers, operators of service facilities, and, where relevant, railway undertakings in the case provided for in Section 31, Paragraph 2.1 of this Law, the State Railway Administration is authorised to request the infrastructure manager, operators of service facilities and all undertakings or other entities performing or integrating different types of rail transport or infrastructure management in accordance with Sections 12.1 and 12.2, and Section 13, Paragraphs one and two to provide all or part of the accounting information with a sufficient level of detail as deemed necessary and proportionate.

[25 February 2016]

Section 32.1 Cooperation of the State Railway Administration with Authorities of other European Union Member States to which the Performance of Regulatory Functions in the Sector of Rail Transport has been Entrusted

(1) The State Railway Administration shall provide information to authorities of other European Union Member States to which the performance of regulatory functions in the sector of rail transport has been entrusted (hereinafter - the railway regulatory bodies) on its work and decision-making principles and practices, including on the main issues of their procedures and on the problems of interpreting transposed European Union railway law.

(2) The State Railway Administration shall cooperate with the railway regulatory bodies, including through working arrangements, for the purposes of mutual assistance in their market monitoring tasks and handling complaints or investigations.

(3) In the case of a complaint or an own-initiative investigation of the State Railway Administration on issues of access or charging relating to an international train path, as well as within the framework of monitoring competition on the market related to international rail transport services, the State Railway Administration shall consult the railway regulatory bodies of all other Member States through which the international train path concerned runs, and shall request all necessary information from them before taking its decision. If the railway regulatory bodies request such information from the State Railway Administration, the State Railway Administration shall provide them with all the information that they have the right to request in accordance with the laws and regulations in the field of rail transport. This information may only be used for the purpose of handling the complaint or investigation, and the State Railway Administration shall transfer it to the relevant railway regulatory bodies in order for those bodies to take measures in relation to the parties concerned.

(4) The railway infrastructure managers (performers of the essential functions) who, upon cooperation with other infrastructure managers (performers of the essential functions), allocate capacity in more than one network of the rail system infrastructure shall, without delay, provide all the information necessary for the purpose of handling the complaint or investigation referred to in Paragraph three of this Section and requested by the State Railway Administration. The State Railway Administration has the right to transfer such information regarding the international train path concerned to the railway regulatory bodies referred to in Paragraph three of this Section.

(5) The State Railway Administration may ask the Commission to participate in the activities referred to in Paragraphs two, three, and four of this Section for the purpose of facilitating the cooperation with the railway regulatory bodies.

[25 February 2016]

Section 33. Agency for Control and Supervision of Railway Technical Operations

(1) In Latvia, the control and supervision of railway technical operations shall be done by the State Railway Technical Inspectorate, which is organisationally and legally independent and independent in decision-making from railway undertakings, railway infrastructure managers, persons who make requests on issues that are within the competence of the State Railway Technical Inspectorate, and persons carrying out railway public procurements.

(2) The State Railway Technical Inspectorate is subordinate to the Ministry of Transport, which is realised in the form of supervision.

(3) The main functions of the State Railway Technical Inspectorate are:

1) to control compliance with the requirements laid down in laws and other laws and regulations concerning railway operations and safety issues;

2) to control the performance of civil defence measures in the operations of railways (including measures on prevention, reaction and liquidation of consequences);

3) to investigate railway traffic accidents and perform the registration thereof;

4) to control the organisation and performance of works related to the elimination of consequences of rolling stock accidents;

5) to examine railway infrastructure building designs and to take decisions in respect of them, issue building permits and control how participants in the construction of railway infrastructure comply with the requirements of this Law and other laws and regulations governing construction;

6) to issue, suspend and cancel safety certificates and to check how the recipient of the safety certificate complies with the conditions included therein and the requirements of the laws and regulations in the field of rail transport;

7) to issue, suspend and cancel safety permits and to check how the recipient of the safety permit complies with the conditions included therein and the requirements of the laws and regulations in the field of rail transport;

8) issue professional competence certificates in the regulated spheres in accordance with laws and regulations;

9) exchange information regarding its work and decision-making principles and practices with the relevant institutions of other European Union Member States;

10) issue train driver's licences;

11) keep the register of train drivers' licences;

12) decide on acceptance of the rolling stock in service;

13) provide information on obligations of the interested parties of the railway sector in relation to Commission Regulation (EU) No 1305/2014 of 11 December 2014 on the technical specification for interoperability relating to the telematics applications for freight subsystem of the rail system in the European Union and repealing the Regulation (EC) No 62/2006 and Commission Regulation (EU) No 454/2011 of 5 May 2011 on the technical specification for interoperability relating to the subsystem 'telematics applications for passenger services' of the trans-European rail system;

14) to recognise assessment bodies within the meaning of Commission Implementing Regulation (EU) No 402/2013 of 30 April 2013 on the common safety method for risk evaluation and assessment and repealing Regulation (EC) No 352/2009.

(4) The State Railway Technical Inspectorate, within its area of authority, is entitled:

1) to verify observance of the Railway Technical Operations Regulations regardless of ownership of the objects to be inspected;

2) to temporarily suspend train traffic, reduce traffic speed and prohibit the operation of technical equipment if the lives or health of people, the safety of traffic, or the environment are endangered;

3) to prohibit the use of rolling stock or track until deficiencies are fully eliminated, if their use can or does endanger the lives or health of people, the safety of traffic, or the environment;

4) to give binding instructions regarding compliance with the Railway Technical Operations Regulations to all legal and natural persons operating within the railway system;

5) to verify whether commission members of a commercial company and the persons who are responsible for the performance of the knowledge examination of railway specialists of the entity comply with the qualification requirements.

(5) Each year the State Railway Technical Inspectorate shall be granted funding from the funding resources specified in Section 10, Paragraph two, Clauses 1 and 2 of this Law in the amount of 0.43% from the total amount of the funding of the railway infrastructure referred to in Section 10, Paragraph two, Clauses 1 and 2 of this Law for the previous year.

(6) The public-use railway infrastructure manager shall allocate the funding provided for in Paragraph 5 of this Section in parts - once per quarter until the 10th date of the first month of the quarter in question, transferring part of the funding provided for in Paragraph 5 of this Section to the account of the State Railway Technical Inspectorate. One-quarter of the planned funding provided for in Paragraph five of this Section shall be transferred for each of the first three quarters. The total amount of this funding shall be clarified when performing the final payment in the relevant year.

[11 November 1999; 10 April 2003; 4 March 2004; 6 October 2005; 24 May 2007; 14 June 2007; 7 May 2009; 1 December 2009; 13 May 2010; 17 June 2010; 28 February 2013; 18 September 2014; 25 February 2016]

Section 33.1 Transport Accident and Incident Investigation Bureau

(1) In the case of serious railway accidents, investigatory activities shall be organised, carried out and controlled by the Transport Accident and Incident Investigation Bureau - a direct State administration institution under the supervision of the Ministry of Transport.

(2) Organisationally, legally and in the taking of its decisions the Transport Accident and Incident Investigation Bureau is independent from the railway infrastructure manager, railway undertaking and railway technical operations control and supervision institution, as well as from an institution, which is responsible for the determination and collection of railway infrastructure charges, the allocation of railway infrastructure capacity or the realisation of State administration in the field of railway transport, and from persons whose interests may be in contradiction with the tasks of the Transport Accident and Incident Investigation Bureau.

(3) In performing an investigation of railway accidents, an investigator of the Transport Accident and Incident Investigation Bureau has the right to:

1) freely access the site of the railway accident, the rolling stock involved in the accident, the relevant railway infrastructure, the traffic control-command and signalling equipment;

2) without delay commence the collection for examination or analysis of direct evidence, the wreck and fragments of the rolling stock, and the railway infrastructure equipment or the components thereof;

3) have access to the content of rolling stock data registration devices, voice communications recording devices, and the control-command and signalling equipment registration devices and to use it;

4) become acquainted with the mortal remains of the victims and the results of examinations of injured persons;

5) become acquainted with the results of the interrogation and questioning and testimonies of the railway specialists involved in the railway accident, other persons involved in the accident, as well as witnesses;

6) question the railway specialists involved in the railway accident, other persons involved in the accident, as well as witnesses;

7) have access to the information and documentation of the State Railway Technical Inspectorate, railway infrastructure manager and railway undertaking involved in the accident;

8) specify when the rolling stock, its parts or fragments, wrecks, freight and other appurtenances may be removed from the site of the incident, as well as to destroy in accordance with the procedures laid down in laws and regulations;

9) invite police officers to determine whether the railway specialists involved in the railway accident are under the influence of alcoholic, narcotic, psychotropic or toxic substances or to escort these persons to a medical treatment institution for the determination of the influence of the abovementioned substances.

(4) Investigators of the Transport Accident and Incident Investigation Bureau, within the scope of their competence, also have the right to perform operations specified in other laws and regulations.

(5) The Transport Accident and Incident Investigation Bureau shall be granted funding for the investigation of transport accidents from the funding resources specified in Section 10, Paragraph two, Clauses 1 and 2 of this Law in the amount of 0.12% from the total amount of the funding of the railway infrastructure referred to in Section 10, Paragraph two, Clauses 1 and 2 of this Law for the previous year.

(6) The public-use railway infrastructure manager shall allocate the funding provided for in Paragraph 5 of this Section in parts - once per quarter until the 10th date of the first month of the quarter in question, transferring part of the funding provided for in Paragraph 5 of this Section to the account of the Transport Accident and Incident Investigation Bureau. One-quarter of the planned funding provided for in Paragraph five of this Section shall be transferred for each of the first three quarters. The total amount of this funding shall be clarified when performing the final payment in the relevant year.

(7) Investigators of the Transport Accident and Incident Investigation Bureau have service identification documents. Sample service identification document and the procedures for issuing and cancelling a service identification document shall be approved by the Cabinet.

[24 May 2007; 12 June 2008; 1 December 2009; 28 February 2013]

Section 33.2 Framework for Information-sharing and Cooperation of the State Railway Administration and the State Railway Technical Inspectorate

The State Railway Administration and the State Railway Technical Inspectorate shall jointly develop a framework for information-sharing and cooperation aimed at preventing adverse effects on competition or safety in the railway market. This framework shall include a mechanism for the State Railway Administration to provide the State Railway Technical Inspectorate with recommendations on issues that may affect competition in the railway market and for the State Railway Technical Inspectorate to provide the State Railway Administration with recommendations on issues that may affect safety. Without prejudice to the independence of each authority within the field of their respective competences, each authority shall examine any such recommendation before taking its decisions. If the relevant authority decides to deviate from these recommendations, it shall give reasons in its decisions.

[25 February 2016]

Section 33.3 Protection of Passenger Rights

(1) The authority referred to in Article 30 of Regulation (EC) No 1371/2007 of the European Parliament and of the Council of 23 October 2007on rail passengers' rights and obligations (hereinafter - Regulation (EC) No 1371/2007) responsible for the enforcement of this Regulation (except Articles 21 and 26 thereof) in domestic passenger services is the Road Transport Administration and in international passenger carriage services - the State Railway Administration.

(2) The authority referred to in Article 30 of Regulation (EC) No 1371/2007 responsible for the enforcement of Articles 21 and 26 of this Regulation shall be the State Railway Administration.

[25 February 2016]

Chapter VI
Railway Undertaking Licence, Safety Certificate and Safety Permit

[4 March 2004]

Section 34. Railway Undertaking Licence

(1) To provide carriage by rail services in the territory of Latvia, the commercial company needs a railway undertaking licence valid in the territory of the European Union. The State Railway Administration shall be the licensing authority in Latvia.

(2) A commercial company established in Latvia has a right to apply for receipt of a railway undertaking licence in Latvia.

(3) The railway undertaking licence shall not be issued or its validity shall not be extended where the requirements specified in laws and regulations regarding licensing of railway undertakings for receipt of a licence have not been complied with. A commercial company which is responsible for the relevant requirements has the right to receive a railway undertaking licence.

(4) A railway undertaking licence shall not, in itself, entitle the holder to access the railway infrastructure.

(5) A commercial company applying for a railway undertaking licence shall be required to be able to demonstrate to the State Railway Administration before the start of its activities that it will at any time be able to meet the requirements relating to good repute, financial fitness, professional competence and cover for its civil liability which are the necessary basic requirements for receiving the railway undertaking licence. For the abovementioned purpose, each commercial company applying for a railway undertaking licence shall also provide all the relevant information.

(6) The Cabinet shall determine the requirements for receiving the railway undertaking licence in relation to the mode of transport, good repute, financial fitness, professional competence and cover for civil liability, and also suspension and revocation criteria for railway undertaking licence and the procedures for granting, suspension and revocation of railway undertaking licences.

(7) A State fee shall be paid for issuing of the railway undertaking licence. The amount and payment procedures thereof shall be determined by the Cabinet. The fee received for issuing of the railway undertaking licence shall be paid into the State budget.

(8) A railway undertaking licence shall be valid throughout the territory of the European Union. A railway undertaking licence issued by the licensing authority of another European Union Member States shall also be valid in Latvia.

(9) A railway undertaking licence shall be valid as long as the recipient thereof fulfils the obligations laid down in this Section. The State Railway Administration may provide for a review of the validity of the railway undertaking licence. If so, the review of the validity of the licence shall be carried out at least every five years.

(10) Where the State Railway Administration issues a railway undertaking licence, suspends its operation, revokes or amends a railway undertaking licence, the State Railway Administration shall immediately inform the European Railway Agency thereof.

[25 February 2016]

Section 35. Safety Certificate

(1) In order to acquire the access right to the public-use railway infrastructure and to guarantee the provision of safe services in the relevant infrastructure line sections, the railway undertaking, before commencing carriage, must obtain a safety certificate which consists of a Part A and a Part B.

(2) Safety certificate Part A shall be issued by the State Railway Technical Inspectorate or the relevant institution of a Member State of the European Union to a railway undertaking, which has established and maintains a safety management system.

(3) Safety certificate Part B shall be issued by the State Railway Technical Inspectorate to a railway undertaking that conforms to the requirements laid down in the field of technical operations and the safety requirements in respect of personnel, rolling stock and internal structure of the commercial company, and which has a valid safety certificate Part A.

(4) The Cabinet shall determine the procedures for issuing, suspending or revoking safety certificate Part A and Part B, as well as the criteria for such issue, suspension and revocation.

(5) The contesting and appeal of a decision to issue, suspend or revoke a safety certificate shall not suspend the operation thereof.

[24 May 2007; 7 May 2009]

Section 35.1 Safety Permit

(1) A railway infrastructure manager and persons who are engaged in the commercial activities referred to in Section 3, Clause 5 of this Law must obtain a safety permit.

(2) The Cabinet shall determine the criteria and procedures for issuing, suspending the operation and revoking a safety permit.

(3) The contesting and appeal of a decision to issue, suspend or revoke a safety permit shall not suspend the operation thereof.

[4 March 2004; 7 May 2009; 13 May 2010]

Chapter VII
Traffic Safety and Social Guarantees of Railway Specialists

[16 October 2014 / Amendment in relation to supplementing the title of Chapter with words "and Social Guarantees of Railway Specialists" shall come into force on 1 December 2015. See Paragraph 39 of the Transitional Provisions]

Section 36. Binding Effect of the Railway Technical Operations Regulations

Commercial companies, as well as other legal persons and natural persons involved in railway activities shall ensure conformity with the Railway Technical Operations Regulations and shall guarantee traffic safety. The railway traffic safety requirements are also binding upon other legal persons and natural persons the activities of which occur directly near railways and may endanger railway traffic safety.

[4 March 2004]

Section 36.1 Rolling Stock and Operation thereof

(1) An owner or user of the rolling stock shall, in conformity with the Railway Technical Operations Regulations, ensure the maintenance of the rolling stock and the operation thereof so that it does not endanger human life and health, railway traffic safety and the environment.

(2) The Cabinet shall determine the procedures for constructing, upgrading, renewal repairs and conformity assessment of the rolling stock, as well as the procedures by which rolling stock shall be accepted in service.

(3) The European standards and technical specifications for interoperability shall not be applied to the construction and upgrading of the rolling stock to be used on a track gauge of 1520 mm which is used or intended to be used for carriage to and from countries which are not European Union Member States.

(4) Upon acceptance in service the rolling stock shall be identified by allocating a European rolling stock number thereto. If the rolling stock to be used on a track gauge of 1520 mm is used not only in the European Union but is used or intended to be used for carriage to and from countries which are not European Union Member States and where different numbering systems are used, the rolling stock shall be allocated a number which is compatible with the numbering system used in the relevant countries.

[17 June 2010]

Section 36.2 Liability of the Manufacturer, Performer of Repair Work, Owner or User of the Rolling Stock, Supplier of Goods and Provider of Services

The manufacturer, performer of repair work, owner or user of the rolling stock, supplier of goods and provider of services shall ensure that the rolling stock, equipment, accessories and installations supplied and services provided thereby conform to the respective requirements and conditions for use in the field of rail transport so that the railway undertaking and railway infrastructure manager could use them safely.

[18 September 2014]

Section 37. Railway Specialist

(1) In order to guarantee safe operation of the railway and traffic safety, all railway specialists involved in railway operations are required to have sufficiently broad and deep knowledge of work organisation relevant to the carrying out of operations and the Railway Technical Operations Regulations.

(2) The Cabinet shall determine the lists of railway specialist professions, the pertinent qualification requirements and criteria for railway specialists, procedures for the examination of knowledge or skills, the procedures for issuing, renewing and revoking railway specialist certificates and professional competence certificates, requirements relating to persons who train the specialists, as well as training programs and lists of technical resources. The contesting and appeal of a decision to issue, suspend or revoke a professional competence certificate shall not suspend the operation thereof.

(3) [7 May 2009]

(4) A railway specialist is liable to be disciplined in accordance with the procedures set out in laws and other laws and regulations.

(5) The conditions of Paragraph two of this Section shall not be applied in respect of train drivers, but Section 37.1 of this Law shall be applicable.

(6) The Cabinet shall determine such professions of railway specialists in which the persons employed are ensured the creation of supplementary pension savings in private pension funds or in life insurance with accumulation of funds.

(7) An employer who is a railway undertaking, a railway infrastructure manager, an operator of a service facility, or the person referred to in Section 3, Clause 5 of this Law shall make contributions in private pension funds or bonuses in life insurance with accumulation of funds for the persons employed in railway specialist professions referred to in Paragraph six of this Section. The amount and regularity of employer contributions or bonuses, and the age at which supplementary pension or life insurance compensation is to be disbursed shall be determined in the collective work agreement.

[4 March 2004; 6 October 2005; 7 May 2009; 13 May 2010; 16 October 2014; 25 February 2016]

Section 37.1 Train Driver

(1) Train driver's licence shall allow a person, assigned by a railway undertaking, infrastructure manager or such person who is engaged in the commercial activities referred to in Section 3, Clause 5 of this Law, to responsibly and safely drive trains or separate means of traction corresponding with the relevant category of the driving licence, to train persons in driving trains or separate means of traction and to perform other activities permitted in laws and regulations when participating in railway traffic.

(2) The rights of a person to drive a train or means of traction in a railway line shall be certified by a valid driver's licence issued by a European Union Member State, the relevant entry in the register of train drivers' licences and a harmonised complementary certificate.

(3) The driver's licence specified in Paragraph one of this Section shall not be necessary when driving means of traction which are being operated in the tram system and in railway networks whose operation is separated from the rest of the railway system and which are only used by railway infrastructure owners to provide their freight or passenger services and only for the purposes related to history and tourism.

(4) The harmonised complementary certificate shall be issued by the employer of a train driver - the railway infrastructure manager, railway undertaking or a person engaged in the commercial activities referred to in Section 3, Clause 5 of this Law. The railway lines where the train driver is permitted to drive and the rolling stock that he or she is permitted to operate shall be indicated therein. The harmonised complementary certificate shall be drawn up in compliance with the requirements of Article 2 of Commission Regulation (EU) No 36/2010 of 3 December 2009 on Community models for train driving licences, complementary certificates, certified copies of complementary certificates and application forms for train driving licences, under Directive 2007/59/EC of the European Parliament and the Council (hereinafter - Regulation No 36/2010).

(5) A train driver's licence is evidence that a driver complies with the mandatory medical requirements, he or she has basic education and general vocational skills. The train driver, institution which issued the train driver's licence and the period of validity of the licence shall be indicated in the train driver's licence. Train driver's licence shall be drawn up in accordance with the requirements of Article 1 of Regulation No 36/2010.

(6) The harmonised complementary certificate shall not be necessary for a train driver who drives a train or means of traction together with a train driver who has a harmonised complementary certificate, if the railway infrastructure manager has been notified thereof.

(7) The issuer of the harmonised complementary certificates has the following duties:

1) to keep the register of harmonised complementary certificates or ensure the keeping thereof. The Cabinet shall determine the procedures and extent for keeping the register of harmonised complementary certificates;

2) to co-operate with the State Railway Technical Inspectorate in order to ensure access to information regarding train driver licences and the exchange of this information.

(8) The Cabinet shall determine the conditions and procedures for obtaining of the train driver's qualification, for acquiring and renewing train driver's licences, as well as the conditions and procedures for issuing, suspending, revoking and renewing train driver's licences and harmonised complementary certificates.

(9) The dispute or appeal of a decision to issue, suspend, revoke or renew a train driver's licence shall not suspend the operation thereof.

[13 May 2010]

Section 38. Increased Danger Zone

(1) The territory where rail traffic takes place and where shunting, loading and unloading operations are carried out is an increased danger zone.

(2) Only railway staff performing their duties shall be allowed in increased danger zones, except in specially indicated locations (crossings and level crossings, platforms, etc.).

Section 39. Guarding of Railway Objects

(1) Guarding of railway objects that are owned by or in possession of legal or natural persons, including during carriage, shall be the responsibility of the owner.

(2) Railway objects include freight and other valuables, territory of the railway commercial companies, structures, buildings, premises, rolling stock and equipment.

(3) Guarding of the State public-use railway infrastructure objects shall be mandatory. The Cabinet shall determine the list of State public-use railway infrastructure objects which it is mandatory to guard and the procedures for the guarding of such objects.

(4) Persons guarding railway objects shall have uniforms, identifying insignia and identification cards.

(5) Persons guarding railway objects shall have the right to:

1) require persons to cease violations of the law and observe procedures applicable to the facility being guarded;

2) detain and deliver over to police custody without delay any violator of the law or persons trespassing on the facility being guarded;

3) check passes or other identification documents, as is required in accordance with any guarding instructions the observance of which is controlled by the person guarding the railway object;

4) inspect the transport and freight at checkpoints of the facility being guarded.

(6) If a violation of the law has taken place, which involves the endangerment of the facility being guarded or other property or the violation of transport procedures or safety regulations, and so creates actual danger to the life or health of people, the facility being guarded or persons who guard railway objects, railway specialists shall have the right to require that persons cease the violations of the law and observe the procedures applicable to the facility being guarded, and, in cases of non-compliance, to deliver the violator to the police without delay, in order to determine his or her identity and to make a report.

[4 March 2004]

Section 40. Investigation of Railway Accidents

(1) A railway accident is an accident of railway traffic, which involves at least one railway means of transport and as a result of which an individual has died or has been caused physical injury, or damage to a legal or natural person or to the environment has been caused.

(11) A serious railway accident is an accident of railway traffic in which as a result of the collision of trains or in relation to a train derailment at least one person has died or bodily injury has been made to at least five persons who have been hospitalised for more than 24 hours due to this accident, or great harm has been done to rolling stock, railway infrastructure or the environment, as well as other similar railway traffic accidents which obviously have an undesirable impact on the regulation of railway safety or safety management. As great harm shall be deemed to be such losses which the Transport Accident and Incident Investigation Bureau has immediately assessed as in total equivalent to at least 2 million euros.

(2) The Cabinet shall determine the procedures for the classification, investigation and registration of railway traffic accidents.

(21) In investigating railway traffic accidents, persons who perform such investigation have the right to become acquainted with the opinions of medical treatment institutions and to receive from them information regarding the health condition of persons injured in a railway traffic accident.

(3) A railway infrastructure manager has the right to request that a railway undertaking transfers resources at his or her disposal, which are necessary so that normal traffic can be renewed as soon as possible after a railway accident. The Cabinet shall determine the procedures for the transfer of resources and compensation of the value thereof.

[4 March 2004; 24 November 2005; 24 May 2007; 14 June 2007; 13 May 2010; 23 September 2010; 12 September 2013]

Section 41. Actions in Emergency Situations on Railways

(1) Private persons who are involved in railway operations, in emergency situations (fires, natural disasters, accidents and other emergency situations) shall act in accordance with the Law on Civil Defence and other laws and regulations.

(2) The railway infrastructure manager and the railway undertaking, in situations where accidents result from railway operations, shall, without delay, rectify the consequences of the accident.

[6 October 2005]

Section 42. International Agreements

(1) If an international agreement, which the Saeima has ratified, provides for different regulations than are in the laws of the Republic of Latvia, the regulations in the international agreement shall be applied. In performing international carriage, international agreements binding upon the Republic of Latvia shall be observed in relation to international railway transportation.

(2) Railway undertakings and railway infrastructure managers shall have the right to represent themselves and to enter into agreements with international railway organisations, foreign commercial companies and the associations thereof.

(3) The right of a foreign commercial company to be a railway undertaking shall be determined by the laws and regulations of the relevant state. The right of border state railway undertakings to access public-use railway infrastructure, not taking into account Section 35 of this Law, shall be determined on the basis of a contract which is entered into between the border state railway undertaking and the public-use railway infrastructure manager and railway undertaking. Documents which certify the competence of the railway undertaking and the border state railway undertaking and the conformity of the equipment thereof shall be mutually recognised on the basis of international agreements.

[4 March 2004]

Section 43. Interoperability of the Trans-European Rail System

(1) In constructing a new European high-speed rail line infrastructure, a train speed, which is not less than 250 kilometres per hour, shall be ensured. In adapting the existing railway infrastructure for high-speed traffic, it shall be equipped in conformity with the speed of the train - approximately 200 kilometres per hour.

(2) In constructing new conventional railway infrastructure which conforms to the European standard gauge, the European standards and technical specifications for interoperability shall be applied in order to ensure the inclusion of such infrastructure in the European conventional railway infrastructure system. In constructing new or modernising existing (1520 mm gauge) conventional railway infrastructure, the European standards and technical specifications for interoperability shall be applied taking into account the specific features of a railway infrastructure with a track gauge of 1520 mm.

(21) The technical specifications for interoperability which have been issued in the field of the European Union Transport Policy and based on Articles 91 and 171 of the Treaty on the Functioning of the European Union, and published in the Official Journal of the European Union, shall be applied to railway lines included in the Trans-European rail system, as well as to the rolling stock to be used in these lines.

(3) The Cabinet shall issue regulations regarding interoperability of the Trans-European Rail system.

(4) The State Railway Administration in supplementing and publishing the records of the railway infrastructure and the rolling stock register shall indicate the conformity of each sub-system included or the parts thereof with the specified requirements for the applicability of technical specifications for interoperability.

(5) A decision to put into service the subsystems of European high-speed and conventional railway system shall be taken by the State Railway Technical Inspectorate.

(6) If the cross-border passenger or freight services are operated to another European Union Member State more than 15 kilometres from the border of the relevant country, also provisions referred to in the Agreement between the Community of European Railways (CER) and the European Transport Workers' Federation (ETF) on certain aspects of the working conditions of mobile workers engaged in interoperable cross-border services in the railway sector, or more favourable provisions for the legal condition of employees shall be included in the collective work agreement or employment contract.

[4 March 2004; 24 May 2007; 10 September 2009; 17 June 2010]

Transitional Provisions

1. Sections 10, 30, 31, 32, 33, and 34 of this Law are applicable as of 1 July 1999.

[4 February 1999]

2. The requirement to receive a railway undertaking licence (Section 34) by 1 September 1999 shall not apply to undertakings (companies) which, in accordance with their Articles of Association, have in fact begun carriage by rail prior to the adoption of this Law.

[4 February 1999]

3. Prior to the issuing of regulations by the Cabinet, the provisions of this Law shall be fulfilled in accordance with laws and regulations as is in force, insofar as it is not in conflict with this Law.

4. The Cabinet shall establish the Railway Technical Inspectorate by 1 July 1999.

5. The methods for the calculation of the public-use railway infrastructure user charges up until they are determined in accordance with this Law (Section 12) shall be approved by the Minister for Transport.

[4 February 1999]

6. The Cabinet shall, by 1 December 2003, determine the procedures by which the State or local government contract for the public procurement of the provision of rail passenger services shall be organised and coordinated, as well as the procedures by which contract for the public procurement of the provision of rail passenger services shall be coordinated and entered into.

[6 February 2003]

7. In order to prevent cross-subsidisation in railway transportation, in 2004 the charge for the use of the railway infrastructure compensated to the passenger railway undertakings may not be less than the levies from the excise tax on petroleum products for diesel fuel used for carriage by rail intended for railway infrastructure fund in 2003.

[30 October 2003]

8. Section 13, Paragraph three and Section 27, Paragraph four of this Law shall come into force on 1 May 2004.

[4 March 2004]

9. Within six months after the coming into force of this Law, the Cabinet shall issue the regulations provided for in Section 7, Paragraph two; Section 16, Paragraph two; Section 35.1, Paragraph two; Section 39, Paragraph three and Section 40, Paragraph three of the Law.

[4 March 2004]

10. [24 May 2007]

11. Until the day of the coming into force of the relevant Cabinet Regulations, but not later than by 1 June 2004, Cabinet Regulation No. 410 of 20 October 1998, Methodology for Subdivision of Strategic and Regionally Important Railway Infrastructures into Categories, shall be applied insofar as it is not in contradiction with this Law.

[4 March 2004]

12. Until the day of coming into force of the relevant Cabinet Regulations, but not later than by 1 January 2005, the following Cabinet Regulations shall be applied insofar as they are not in contradiction with this Law:

1) Cabinet Regulation No. 111 of 23 March 1999, Railway Administration By-laws;

2) Cabinet Regulation No. 211 of 15 June 1999, Railway Technical Inspectorate By-laws.

[4 March 2004]

13. The terms "commercial company" and "merchant" in this Law shall be understood also as an undertaking or company, but the term "commercial activity" - also as entrepreneurial activity within the meaning of the Law on Entrepreneurial Activity.

[4 March 2004]

14. The Cabinet shall, within six months after coming into force of this Law, issue the Regulations provided for in Section 19, Paragraph five of this Law.

[6 October 2005]

15. The Cabinet shall, by 1 January 2006, issue the Regulations provided for in Section 27, Paragraph twelve; Section 28; Section 31, Paragraph one, Clause 13; Section 36.1, Paragraphs three and four and Section 37, Paragraph two of this Law.

[6 October 2005]

16. Up to the day of coming into force of the Cabinet Regulations referred to in Section 27, Paragraph twelve; Section 31, Paragraph one, Clause 13 and Section 37, Paragraph two of this Law, but not later than by 1 January 2006, the following Regulations of the Ministry of Transport shall be applied insofar as they are not in contradiction with this Law:

1) Regulation of the Ministry of Transport No. 21 of 4 August 2004, Procedures for the Allocation of Public-use Railway Infrastructure Capacity;

2) Regulation of the Ministry of Transport No. 25 of 13 September 2001, Procedures for the Registration of Railway Rolling Stock;

3) Regulation of the Ministry of Transport No. 1 of 6 January 2005, Regulations regarding the Issuing of a Certificate of a Train Driver's Instructor, Train Driver, Train Driver's Assistant, the Extension and Cancellation of the Period of Validity thereof;

4) Regulation of the Ministry of Transport No. 2 of 6 January 2005, Regulations regarding the Railway Specialist Vocational Qualification.

[6 October 2005]

17. The Cabinet shall, by 1 July 2006, issue the regulations provided for in Section 25.1, Paragraph four of this Law.

[24 November 2005]

18. [24 May 2007]

19. The new wording of Section 35 of this Law shall come into force on 1 January 2008. The Cabinet shall, by 1 January 2008, issue the regulations referred to in Section 35, Paragraph four (new wording) of this Law.

[24 May 2007]

20. Safety certificates which have been issued up to the day of coming into force of the amendments referred to in Paragraph 19 of the Transitional Provisions of this Law shall be valid up to the term of validity indicated therein.

[24 May 2007]

21. The Cabinet shall, by 1 November 2007, issue the regulations referred to in Section 43, Paragraph three of this Law regarding the mutual interoperability of the Trans-European Rail System. Up to the day of coming into force of the relevant regulation, but not later than by 1 November 2007, Cabinet Regulation No. 1025 of 19 December 2006, Regulations regarding the Mutual Interoperability of Trans-European Rail Systems, shall be applied insofar as it is not in contradiction with this Law.

[24 May 2007]

22. The new wording of Section 33.1 of this Law and amendments to Section 40, Paragraph 1.1 of this Law shall come into force on 1 July 2007.

[24 May 2007]

23. The Cabinet shall, by 1 January 2008, issue the regulations referred to in the second sentence of Section 22 of this Law regarding the procedures for design and construction of railway infrastructure objects, as well as the procedures by which they shall be accepted for service. Up to the day of coming into force of the relevant regulations, but not later than by 1 January 2008, Cabinet Regulation No. 394 of 2 December 1997, Railway Building Regulations, shall be applied insofar as it is not in contradiction with this Law.

[14 June 2007]

24. Amendments to Section 23 of this Law regarding the deletion of the second sentence of Paragraph two and amendments to Section 33 of this Law regarding the expression of Clause 5 of Paragraph three in a new wording shall come into force on 1 January 2008.

[14 June 2007]

25. Amendment to Section 14, Paragraph one of this Law regarding deletion of the word "and regional" and amendment to Paragraph four regarding replacement of the words "relevant district local government" with the words "relevant local governments" shall come into force on 1 July 2009.

[17 July 2008]

26. The Cabinet shall, by 1 January 2010, issue the regulations provided for in Section 25.2, Paragraph three of this Law.

[10 September 2009]

27. Until the day of coming into force of the regulations referred to in Section 35.1, Paragraph two of this Law, which regulate the criteria and procedures for the issue, suspension and revocation of a safety certificate, but not later than by 1 December 2010, Cabinet Regulation No. 616 of 23 August 2005, Procedures for the Issue, Revocation and Suspension of a Safety Certificate, shall be applicable insofar as it is not in contradiction with this Law.

[13 May 2010]

28. The amendment to Section 37 of this Law regarding the addition of Paragraph five thereto shall come into force on 1 November 2011.

[13 May 2010]

29. Section 37.1, Paragraphs two, three, four, five, six, seven, eight, and nine of this Law shall be applicable from 1 November 2011 and until this time Section 37, Paragraph two of this Law shall regulate the conditions for the acquisition, suspension and loss of a train driver's licence.

[13 May 2010]

30. Train driver's licences and certificates which, in compliance with Paragraph 29 of these Transitional Provisions and the conditions of Section 37, Paragraph two of this Law, have been issued until 31 October 2011 shall be in effect until expiry of the period of validity thereof and shall certify the train driver's rights specified in Section 37.1 of this Law.

[13 May 2010]

31. The register of harmonised complementary certificates referred to in Section 37.1, Paragraph seven, Clause 1 of this Law shall be established until 31 October 2011.

[13 May 2010]

32. The Cabinet shall, by 1 September 2010, issue the regulations referred to in Section 37.1, Paragraph seven, Clause 1 and Paragraph eight of this Law.

[13 May 2010]

33. The Cabinet shall, by 1 January 2011, issue the regulation referred to in Section 36.1, Paragraph two regarding the procedures for the construction, upgrading, renewal repair and conformity assessment of the rolling stock, as well as the procedures by which rolling stock shall be accepted in service. Up to the day of coming into force of the relevant regulation, but not later than until 1 November 2010, Cabinet Regulation No. 610 of 25 July 2006, Procedures for the Renewal Repair and Upgrading of Rolling Stock, and Cabinet Regulation No. 713 of 29 August 2006, Procedures by which Newly Constructed Rolling Stock or Rolling Stock which has had Renewal Repair or Upgrading Shall be Accepted in Service, shall be in force insofar as they are not in contradiction with this Law.

[17 June 2010; 23 September 2010]

34. The amendments to this Law which provide for a new wording of Section 1, Clause 12, the first sentence of Section 6, Paragraph two, Section 11, Paragraph one, Section 12, Paragraphs four, five, eight and thirteen, Section 13, Paragraphs one and two, Section 27, Paragraphs one and four and the second sentence of Paragraph nine, and the second sentence of Section 31, Paragraph three, the deletion of Section 12, Paragraph ten, Section 13, Paragraph three, and Section 27, Paragraph five, and amendments which provide for supplementing the Law with Section 13.1, supplementing Section 1 with Clause 23, supplementing Section 12 with Paragraphs 2.1, 5.1, fourteen and fifteen, supplementing Section 27 with Paragraphs thirteen and fourteen, supplementing Section 31, Paragraph one with Clauses 18 and 19, as well as the amendments which provide for the replacement of the words "the infrastructure manager" in Section 27, Paragraph ten with the words and figure "In accordance with Section 12, Paragraph four of this Law, the performer of the essential functions of a public-use railway infrastructure manager", shall come into force on 1 January 2011.

[23 September 2010]

35. The State joint stock company referred to in Section 6, Paragraph two of this Law shall establish a capital company in the form of a joint stock company, which shall start performing the essential functions of the railway infrastructure manager from 1 January 2011 - taking of decisions on the charge for the use of a railway infrastructure, the allocation of capacity of the railway infrastructure, as well as taking of decisions to designate trains of a particular railway undertaking. The requirements of Section 7, Paragraph two and Section 98, Paragraph three of the Law on State and Local Government Capital Shares and Capital Companies shall not be applicable to the establishment of this joint stock company.

[23 September 2010]

36. Until 30 June 2011, the Public Utilities Commission shall determine the procedures referred to in Section 12, Paragraph 2.1 of this Law for applying charges for the use of the public-use railway infrastructure and the procedures for settling accounts for charges for the use of the public-use railway infrastructure.

[23 September 2010 / Section 12, Paragraph 2.1 shall be included in the wording of the Law on 1 January 2011. See Paragraph 34 of the Transitional Provisions]

37. The Cabinet shall, by 1 January 2011, issue the regulation referred to in Section 40, Paragraph two of this Law regarding the procedures for the classification, investigation and registration of railway traffic accidents. Until the day of coming into force of the relevant regulation, but not later than until 1 January 2011, Cabinet Regulation No. 393 of 6 October 1998, Procedures for the Investigation of Railway Traffic Accidents, shall be applicable, insofar as it is not in contradiction with this Law.

[23 September 2010]

38. The procedures for settling accounts in relation to charges for the use of the public-use railway infrastructure referred to in Section 12, Paragraph 2.1 of this Law until 3 July 2017 shall not apply to the rail passenger services which are provided on the basis of a State or local government contract for the public procurement of carriage by rail, if the railway undertaking, public-use railway infrastructure manager and the State or local government enter into an agreement on such conditions for the settlement of accounts which ensure that the revenue of the public-use railway infrastructure manager from charges for the use of the public-use railway infrastructure at least conform to the costs for maintaining the public-use railway infrastructure and other costs which are taken into account to determine the charges for the use of the public-use railway infrastructure. For such purpose the contract may provide for the way in which the State or local government shall cover the charges for the use of the public-use railway infrastructure in the amount of such costs which are related to capital investments.

[6 November 2013; 25 February 2016]

39. Amendments to this Law which provide for supplementing the title of Chapter VII and supplementation of Section 37 with Paragraphs six and seven shall come into force on 1 December 2015. The Cabinet shall, by 1 February 2015, issue the regulations referred to in Section 37, Paragraph six of this Law regarding such professions of railway specialists, the persons employed in which are ensured the creation of supplementary pension savings in private pension funds or in life insurance with accumulation of funds.

[16 October 2014]

40. The performer of the essential functions of the public-use railway infrastructure manager after consultations with the applicants and the public-use railway infrastructure manager shall develop and by 3 July 2017 approve the charging scheme in relation to the minimum access package referred to in Section 12.1, Paragraph one of this Law and access to infrastructure connecting the infrastructure and service facilities, and also the collection scheme of the abovementioned charges. Until this term the Decision No. 1/10 of 16 June 2011, Procedures for the Settlement of the Charge for the Use of the Public-use Railway Infrastructure, Decision No. 1/11 of 16 June 2011, Procedures for the Application of the Charges for the Use of the Public-use Railway Infrastructure, and Decision No. 1/21 of the Public Utilities Commission of 21 September 2011, Methods for Calculation of the Charges for the Use of the Public-use Railway Infrastructure for Carriage shall be applied, insofar as it is not in contradiction with this Law. These decisions of the Public Utilities Commission are repealed from the day when the charging scheme and the charge collection scheme approved by the performer of the essential functions of the public-use railway infrastructure manager enter into effect.

[25 February 2016]

41. Until determination of the charges referred to in Section 10, Paragraph two, Clause 1 of this Law the relevant funding is provided by the charges set by the performer of the essential functions of the public-use railway infrastructure manager for use of the public-use railway infrastructure.

[25 February 2016]

42. A complaint of a railway undertaking regarding non-compliance with the procedures of the settlement referred to in Paragraph 40 of the Transitional Provisions shall be examined by the State Railway Administration in accordance with the procedures and within the time period laid down in laws and regulations.

[25 February 2016]

43. A complaint regarding the compliance of the charges for the use of the public-use railway infrastructure with the methods referred to in Paragraph 40 of the Transitional Provisions or a complaint regarding the compliance of the charges for the use of the public-use railway infrastructure (in case of increased charge or charge rebate) with the requirements laid down in procedures for the application referred to in Paragraph 40 of the Transitional Provisions shall be examined by the State Railway Administration, and they may be submitted within a month after publishing the relevant decision in the official gazette Latvijas Vēstnesis.

[25 February 2016]

44. The State Railway Administration shall handle the complaints referred to in Paragraph 43 of the Transitional Provisions and shall take a decision by which it shall confirm that the charges for the use of the public-use railway infrastructure comply with the methods referred to in Paragraph 40 of the Transitional Provisions or that the increased charge or charge rebate complies with the procedures for the application referred to in Paragraph 40 of the Transitional Provisions, or shall request the amendment of the abovementioned charges according to the instructions of the State Railway Administration.

[25 February 2016]

45. Until the day of coming into force of the Cabinet regulations referred to in Section 27, Paragraph ten; Section 28, Paragraph three, and Section 34, Paragraphs six and seven of this Law, but not later than by 30 September 2016, the following Cabinet regulations shall be applied insofar as they are not in contradiction with this Law:

1) Cabinet Regulation No. 990 of 24 September 2013, Regulations Regarding the Amount of the State Fee for Issuing Railway Undertaking Licence for the Provision of Freight and Passenger Services;

2) Cabinet Regulation No. 539 of 27 June 2006, Regulations for the Allocation of Capacity of the Public-Use Railway Infrastructure;

3) Cabinet Regulation No. 461 of 6 June 2006, Regulations Regarding the Content of the Public-use Railway Infrastructure Statement (Network Statement) and Procedures for Publication thereof;

4) Cabinet Regulation No. 4 of 5 January 1999, Regulations Regarding Railway Undertaking Licensing.

[25 February 2016]

46. Amendment to Section 15 of this Law regarding its rewording shall come into force on 1 October 2016. Until the day of coming into force of the relevant amendment the Cabinet shall issue the regulations referred to in Section 15, Paragraph two of this Law.

[25 February 2016]

47. The funding to the Transport Accident and Incident Investigation Bureau and to the heritage railway in 2016, 2017, and 2018 may not be less than the funding allocated in 2015.

[25 February 2016]

48. The funding to the State Railway Administration in 2016, 2017, and 2018 may not be less than the funding allocated in 2015 and multiplied by coefficient 1.3.

[25 February 2016]

49. The funding to the State Railway Technical Inspectorate in 2016, 2017, and 2018 may not be less than the funding allocated in 2015 and multiplied by coefficient 1.1.

[25 February 2016]

50. By 1 April 2018 the Cabinet shall develop and submit to the Saeima the necessary draft laws that provide for the funding necessary for heritage railway and for implementation of the functions of the State Railway Administration, the State Railway Technical Inspectorate, and the Transport Accident and Incident Investigation Bureau.

[25 February 2016]

51. Until 30 June 2016 the State Railway Administration shall replace railway undertaking licences for the performance of rail passenger services issued by the Public Utilities Commission with new railway undertaking licences drawn up in accordance with the requirements of Commission Implementing Regulation (EU) 2015/171 of 4 February 2015 on certain aspects of the procedure of licensing railway undertakings. In such a case the State fee need not be paid. Licences of a railway undertaking issued by the Public Utilities Commission are invalid and cannot be used after 30 June 2016.

[25 February 2016]

52. The performer of the essential functions of the public-use railway infrastructure manager or the public-use railway infrastructure manager, if it performs the essential functions of the manager, may decide that the Commission Implementing Regulation (EU) 2015/909 of 12 June 2015 on the modalities for the calculation of the cost that is directly incurred as a result of operating the train service is applied gradually no longer than until 3 July 2019.

[25 February 2016]

Informative Reference to the European Union Directives

[25 February 2016]

This Law contains legal norms arising from:

1) Directive 2004/49/EC of the European Parliament and of the Council of 29 April 2004 on safety on the Community's railways and amending Council Directive 95/18/EC on the licensing of railway undertakings and Directive 2001/14/EC on the allocation of railway infrastructure capacity and the levying of charges for the use of railway infrastructure and safety certification (Railway Safety Directive);

2) Council Directive 2005/47/EC of 18 July 2005 on the Agreement between the Community of European Railways (CER) and the European Transport Workers' Federation (ETF) on certain aspects of the working conditions of mobile workers engaged in interoperable cross-border services in the railway sector;

3) Directive 2007/58/EC of the European Parliament and of the Council of 23 October 2007 amending Council Directive 91/440/EEC on the development of the Community's railways and Directive 2001/14/EC on the allocation of railway infrastructure capacity and the levying of charges for the use of railway infrastructure;

4) Directive 2007/59/EC of the European Parliament and of the Council of 23 October 2007 on the certification of train drivers operating locomotives and trains on the railway system in the Community;

5) Directive 2008/57/EC of the European Parliament and of the Council of 17 June 2008 on the interoperability of the rail system within the Community;

6) Directive 2008/110/EC of the European Parliament and of the Council of 16 December 2008 amending Directive 2004/49/EC on safety on the Community's railways (Railway Safety Directive);

7) Commission Directive 2009/149/EC of 27 November 2009 amending Directive 2004/49/EC of the European Parliament and of the Council as regards Common Safety Indicators and common methods to calculate accident costs;

8) Directive 2012/347/EU of the European Parliament and of the Council of 21 November 2012 establishing a single European railway area.

This Law shall come into force on 1 November 1998.

This Law has been adopted by the Saeima on 1 April 1998.

President G. Ulmanis

Rīga, 17 April 1998


1 The Parliament of the Republic of Latvia

Translation © 2018 Valsts valodas centrs (State Language Centre)

 
Document information
Status:
In force
in force
Issuer: Saeima Type: law Adoption: 01.04.1998.Entry into force: 01.11.1998.Theme:  Transport and communication; ; Publication: Latvijas Vēstnesis, 102/105, 17.04.1998.; Latvijas Republikas Saeimas un Ministru Kabineta Ziņotājs, 9, 07.05.1998.
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05.12.2019
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