Disclaimer: The English language text below is
provided by the Translation and Terminology Centre for
information only; it confers no rights and imposes no
obligations separate from those conferred or imposed by
the legislation formally adopted and published. Only the
latter is authentic. The original Latvian text uses
masculine pronouns in the singular. The Translation and
Terminology Centre uses the principle of gender-neutral
language in its English translations. In addition,
gender-specific Latvian nouns have been translated as
gender-neutral terms, e.g. chairperson.
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Text consolidated by Tulkošanas un terminoloģijas
centrs (Translation and Terminology Centre) with amending
laws of:
19 December 2002;
13 February 2003;
10 March 2005;
22 June 2006;
26 April 2007;
8 November 2007.
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.
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The Saeima1 has adopted and the
President has proclaimed the following Law:
Regional Development Law
Chapter I
General Provisions
Section 1. Terms Used in this
Law
The following terms are used in this Law:
1) regional development - productive changes in the
social and economic situation in the entire territory of the
State or separate parts thereof;
2) regional policy - guidelines and purposeful activity
of the government in promoting regional development by
co-ordinating sectoral development in conformity with the
development priorities of separate parts of the State territory
and by providing direct support for development of separate parts
of the State territory; and
3) territorial development index - artificial index,
which compiles separate territorial group indicators and
characterises the development level of the territory.
[8 November 2007]
Section 2. Purpose of the Law
The purpose of this Law is to promote and ensure balanced and
sustainable development of the State, taking into account special
features and opportunities of the entire State territory and of
separate parts thereof, to reduce the unfavourable differences
among them, as well as to preserve and develop the features
characteristic of the natural and cultural environment of each
territory and the development potential thereof.
Section 3. Regional Development
Support Measures
Regional development support measures are a programme and a
set of relevant projects to be implemented in order to attain the
objectives of this Law.
Section 4. Basic Principles of
Regional Development
In the process of planning, management, financing, monitoring
and assessment of regional development the following basic
principles shall be observed:
1) principle of concentration - financing channelled in
support of regional development shall be concentrated towards
attainment of specific priority objectives;
2) principle of programming - regional development
support measures shall be implemented on the basis of regional
development planning documents developed at the national level,
the level of planning regions, district and territorial local
governments, which documents determine the totality of
development priorities and support measures;
3) principle of partnership - ensures co-operation
between State administrative institutions, international
institutions, planning region development councils, local
governments, non-governmental organisations and
entrepreneurs;
4) principle of additionality - priorities determined
by the State regional policy shall be financed from the State
budget with the financial participation of local governments,
foreign financial assistance, legal persons and natural persons,
including donations; priorities determined at the level of
planning regions, district and territorial local governments
shall be financed from the budget of the relevant local
government with financial participation of the State, foreign
financial assistance, legal persons and natural persons,
including donations; in addition, regional development support
financing at various levels shall be mutually supplementary and
shall not replace one another. The amount of co-financing for
recipients of support in investment and commercial activity
support programmes shall be determined and differentiated in
conformity with a local government or the relevant territory
being part of the territory to be specially supported; a more
favourable amount of co-financing being determined for recipients
of support in specially supported territories;
5) principle of transparency - the process of regional
development planning and decision taking in respect of support
measures shall be public, and the public shall be informed of the
accessibility of regional development planning and support
measures and the results attained;
6) principle of subsidiarity - the duties of public
authority shall be fulfilled as far as possible by the authority
which is closest to the person and can ensure effective
fulfilment of duties at a lower level of administration; and
7) principle of sustainability - ensures for the
existing and next generations a qualitative environment, balanced
economic development, rational utilisation of natural, human and
material resources, as well as preservation of natural and
cultural heritage.
[13 February 2003]
Section 5. Planning Regions
(1) A planning region is a derived public person. Its
decision-taking institution is the Planning Region Development
Council.
(2) The Cabinet shall determine the territories of the
planning regions in accordance with proposals submitted by local
governments.
(3) The planning regions are Kurzeme Planning Region, Latgale
Planning Region, Rīga Planning Region, Vidzeme Planning Region
and Zemgale Planning Region.
[22 June 2006]
Chapter II
Regional Development Planning Documents
Section 6. Regional Development
Planning Documents
(1) Regional development shall be implemented in conformity
with the following mutually co-ordinated State and regional
development planning documents:
1) National Development Plan;
2) National Spatial Plan;
3) Regional Policy Guidelines;
4) sectoral development programmes;
5) development programmes and spatial plans of planning
regions;
6) development programmes and spatial plans of district local
governments; and
7) development programmes and spatial plans of territorial
local governments.
(2) The Cabinet shall determine the procedures for
development, implementation, monitoring and public discussion of
the National Spatial Plan and National Development Plan.
[19 December 2002; 10 March
2005]
Section 7. Regional Policy
Guidelines
Regional Policy Guidelines is a long-term (10 and more years)
regional policy planning document, which embodies the main basic
principles, objectives, priorities and directions of regional
development.
Section 8. National Spatial Plan
The National Spatial Plan shall be regulated by the Spatial
Planning Law.
Section 9. National Development
Plan
(1) The National Development Plan is a medium-term (seven
years) strategic planning document in which are mutually
co-ordinated sectoral and regional development priorities and the
financial sources for the implementation thereof. The aim of the
National Development Plan is to facilitate balanced and
sustainable development of the State and to ensure the increase
of Latvia's competitiveness in the European Union.
(2) The National Development Plan shall be developed in
accordance with the objectives and priorities specified in the
Regional Policy Guidelines and in the National Spatial Plan,
taking into account the development priorities set by the
development programmes and territorial spatial plans of planning
regions.
[10 March 2005]
Section 10. Sectoral Development
Programme
(1) The sectoral development programme is a medium-term (seven
years) policy planning document, which applies to a particular
sphere and sets objectives, main tasks and results to be achieved
in the development of that sphere.
(2) The sectoral development programme shall be prepared and
implemented in accordance with the Regional Policy Guidelines,
the National Spatial Plan and the National Development Plan.
[19 December 2002]
Section 11. Development Programme of
a Planning Region
(1) The development programme of a planning region shall be
developed by each planning region and it is a medium-term (seven
years) regional policy planning document which sets out the
development priorities of the relevant planning region and
contains a set of specific measures.
(2) The development programme of a planning region shall be
developed and implemented in accordance with the Regional Policy
Guidelines, the National Spatial Plan, the National Development
Plan and the territorial spatial plan of the relevant planning
region, taking into account the development programmes and
spatial plans of the local governments located in the planning
region.
(3) The development programme of a planning region shall be
approved by the Planning Region Development Council.
Section 12. Development Programmes
of District Local Governments
(1) The development programme of a district local governments
is a long-term (twelve years) regional policy planning document
in which is specified the development priorities of the relevant
district local government and contains a set of specific
measures.
(2) The development programme of a district local government
shall be prepared and implemented in accordance with the
territorial spatial plan of the relevant district local
government and the development programme and territorial spatial
plan of that planning region which region encompasses the
relevant district local government, taking into account the
development programmes and spatial plans of the local governments
located in the territory of the district.
(3) The development programme of a district local government
shall be approved by the relevant local government district
council.
[10 March 2005]
Section 13. Development Programmes
of Territorial Local Governments
(1) The development programme of a territorial local
government is a long-term (twelve years) regional policy planning
document in which is specified the development priorities of the
relevant territorial local government.
(2) The development programme of a territorial local
government shall be developed and implemented in accordance with
the territorial spatial plan of the relevant territorial local
government and the development programme and territorial spatial
plan of that district local government which encompasses the
relevant territorial local government.
(3) The development programme of a territorial local
government shall be approved by the relevant local government
parish council (city council).
[10 March 2005]
Chapter III
Competence of Public Institutions
Section 14. Competence of the
Cabinet
The Cabinet shall:
1) approve the Regional Policy Guidelines and the National
Development Plan;
2) determine procedures for implementation, evaluation and
financing of State regional development support measures;
3) [13 February 2003]
4) determine the procedures for the exchange of information
between the institutions involved in the operations of the
monitoring and evaluation system of regional development;
5) determine procedures for the calculation and application of
the territorial development index;
6) determine the criteria for the granting of State grants to
local governments and planning regions for the implementation of
European Union structural fund and Cohesion Fund co-financing
projects; and
7) determine the procedures by which earmarked grants for
investments are granted and utilised.
[19 December 2002; 13 February
2003; 22 June 2006; 8 November 2007]
Section 15. National Regional
Development Council
(1) For the co-ordination of regional development, spatial
planning and land policy in the State, the Cabinet shall
establish a National Regional Development Council.
(2) The composition of the National Regional Development
Council shall include in even numbers representatives of State
administrative institutions and representatives from the planning
regions and local governments. The chairperson of the National
Regional Development Council shall be the Minister for Regional
Development and Local Government.
(3) The National Regional Development Council shall perform
the following functions in respect of regional development,
spatial planning and land policy:
1) evaluate policy planning documents and draft regulatory
enactments in relation to regional policy, spatial planning and
in the field of land policy;
2) evaluate regional level planning documents, and facilitate
their mutual compatibility and co-ordination with State level
policy planning documents;
3) examine reports regarding the course of the implementation
of regional policy, spatial planning and land policy and provide
proposals for the improvement of the referred to policies;
4) evaluate proposals regarding regional development support
measures and reports regarding the effectiveness of the
implementation of the relevant measures, ensuring the mutual
co-ordination of regional development support measures;
5) evaluate criteria for the territorial division of regional
development support measure financing; and
6) perform other functions prescribed by regulatory
enactments.
(4) The number and the nomination procedures thereof of the
representatives to the National Regional Development Council, as
well as the work organisation of the Council shall be determined
by the Cabinet.
[13 February 2003; 10 March 2005;
26 April 2007]
Section 16. Ministry of Regional
Development and Local Government
The Ministry of Regional Development and Local Government is
the leading institution for the development and implementation of
State regional policy, as well as the co-ordination of
implementation of the State support measures for regional
development. The Ministry of Regional Development and Local
Government shall monitor the work of the planning regions.
[13 February 2003; 22 June
2006]
Section 16.1 Competence
of Planning Regions
(1) Planning regions within the scope of their competence
shall ensure the planning and co-ordination of regional
development, and co-operation between local government and other
State administrative institutions. In addition to the competences
specified in other regulatory enactments, planning regions
shall:
1) determine the main basic principles, aims and priorities
for the long-term development of the planning region;
2) ensure the co-ordination of the development of the planning
region in conformity with the main basic principles, aims and
priorities specified in regional development planning
documents;
3) manage and monitor the development and implementation of
planning region development programmes and spatial plan;
31) evaluate and provide opinions regarding the
mutual co-ordination of regional and territorial level
development planning documents and the conformity thereof to the
requirements of regulatory enactments;
4) ensure local government co-operation and the co-operation
of the planning region with national level institutions for the
implementation of regional development support measures;
5) evaluate the conformity of the national spatial plan,
national development plan and sectoral development programmes to
the planning region development programme and spatial plan and,
in determining non-conformity, propose amendments to the national
level development planning documents or decide regarding
amendments to the planning region planning documents;
6) evaluate the projects submitted by territorial local
governments or private persons for the receipt of regional
development State aid and provide opinions in respect of
them;
7) in co-operation with local governments and State
institutions, develop a planning region development programme and
spatial plan, ensure the co-ordination thereof with the national
spatial plan, national development plan and sectoral development
programmes, as well as the management of the implementation
thereof;
8) co-ordinate and promote the development, implementation,
supervision and evaluation of planning region regional
development support measures;
9) prepare opinions regarding the conformity of national level
development planning documents to the planning region development
programme and spatial plan; and
10) develop and implement projects within the scope of
regional development support measures.
(2) In order to implement the competences of planning regions,
the Planning Region Development Council;
1) shall approve the by-laws and budgets of planning
regions;
2) may establish, reorganise and abolish planning region
institutions and capital companies;
3) may decide regarding participation in associations and
foundations;
4) may specify remuneration in respect of the fulfilment of
the duties of council chairperson, members of the council and
administrative employees and the procedures for the payment
thereof; and
5) may specify the types of paid services provided by the
planning region and the amount of payment.
[22 June 2006; 8 November 2007]
Section 17. Planning Region
Development Council
(1) The Planning Region Development Council shall be elected
from among the councillors of the relevant local governments by a
general assembly of the chairpersons of local governments located
in the planning region. The general assembly of the chairpersons
of local governments, unless otherwise specified by law, shall
take decisions as follows:
1) if none of the participants of the general assembly
objects, decisions shall be taken without voting, by agreement;
or
2) if even only one of the participants of the general
assembly objects, the decision shall be voted upon. A decision
shall be taken if more than half of the participants of the
general assembly vote for it and those voting for the taking of
the decision represent not less than half of the total number of
inhabitants of the relevant planning region local governments.
The number of inhabitants shall be determined in conformity with
Population Register data not earlier than one week prior to the
day of the general assembly.
(2) The chairperson of the Planning Region Development Council
shall be elected by the Planning Region Development Council from
among the council members elected to it.
(3) Meetings of the Planning Region Development Council shall
be open and representatives of State administrative institutions,
international institutions, non-governmental organisations,
entrepreneurs and local governments located in another planning
region may participate in such meetings in the capacity of
advisors.
(4) A by-law shall determine the procedures by which a
decision is taken by the Planning Region Development Council.
[19 December 2002; 22 June
2006]
Section 17.1 Procedures
for the Financing of Planning Regions
(1) The sources of financing for planning regions may be the
following:
1) State budget grants for the support of planning regions and
other State budget grants;
2) own revenue, including revenue from paid services provided
by the planning region;
3) grants from local government budgets in accordance with
contracts entered into by a local government and a planning
region;
4) foreign financial aid funds; and
5) donations and gifts.
(2) For the receipt of State budget funds and for the
implementation of the tasks to be performed therefrom, a planning
region shall open a current account with the Treasury. The
responsible ministry in conformity with the State budget
appropriation shall pay the grant into the current account. At
the end of the year unutilised State budget grants shall be paid
into the State budget as revenue.
(3) A planning region may open a current account with the
Treasury for the accounting of such funds as are not planned in
the State budget. At the end of the year the account surplus
shall remain at the disposal of the planning region, and the
planning may use it in the next financial year.
[8 November 2007]
Section 18. Planning Region
Co-operation Committee
(1) In order to ensure co-ordination and co-operation with
national level institutions and planning regions for the
implementation of regional development support measures, each
planning region shall establish a Planning Region Co-operation
Committee.
(2) The meetings of the Planning Region Co-operation Committee
shall be open and the chairperson of the Planning Region
Development Council shall chair them.
(3) Ministries and the secretariats of special task ministers
(hereinafter - ministries) shall appoint co-operation
co-ordinators, who shall ensure exchange of information between
the planning region and the ministry. Each ministry shall inform
the Planning Region Development Council and the Ministry of
Regional Development and Local Government regarding the
appointment of a co-operation co-ordinator.
(4) The composition of a Planning Region Co-operation
Committee shall be:
1) representatives assigned by the Planning Region Development
Council; and
2) representatives assigned by the ministries.
(5) The chairperson of the Planning Region Development Council
not later than two weeks prior to a meeting of the Planning
Region Co-operation Committee shall inform the relevant ministry
co-operation co-ordinators regarding the issues to be discussed
at the meeting of the Planning Region Co-operation Committee and
invite the relevant ministry to ensure its participation in the
meeting of the Planning Region Co-operation Committee.
(6) In the case referred to in Paragraph five of this Section,
a ministry shall assign its representatives for participation in
the meeting of the Planning Region Co-operation Committee in
conformity with issue to be discussed.
[19 December 2002; 22 June
2006]
Chapter IV
Financing of Regional Development
Section 19. Sources of Financing of
Regional Development
(1) Regional development support measures shall be financed
from the State budget, budgets of local governments, foreign
financial assistance resources, and from payments by legal
persons and natural persons, including donations.
(2) Regional development support measures, which have been
included in the National Development Plan, shall be financed from
the State budget, budgets of local governments and foreign
financial assistance resources, as well as from legal person and
natural person resources.
[10 march 2005]
Section 20. Regional Fund
(1) The Cabinet shall establish a Regional Fund for promoting
regional development. The Minister for Regional Development and
Local Government shall supervise the operation of the Regional
Fund.
(2) Resources included in the Regional Fund may be channelled
for facilitating the development of specially supported
territories.
(3) By-laws of the Regional Fund shall be approved by the
Cabinet.
[13 February 2003]
Section 21. Allocation of Regional
Development Financing
(1) Regional development financing shall be allocated for
regional development support measures, which conform to the main
basic principles, objectives and priorities set out in the
regional development policy planning documents, and for the
management of such measures.
(2) The Law on Control of Aid for Commercial Activity shall be
applied to regional development financing which is considered to
be aid for commercial activities.
(3) [22 June 2006]
[19 December 2002; 22 June
2006]
Chapter V
Specially Supported Territories
Section 22. Concept of Specially
Supported Territories
A specially supported territory is a territory where negative
trends of economic and social development or one of such trends
persist long-term and to which the status of a specially
supported territory has been granted by law.
Section 23. Status of a Specially
Supported Territory
(1) The purpose of granting the status of specially supported
territory is to create opportunities for economic and social
development for economically weak or less favourable territories
in order to promote the development of equal social and economic
conditions throughout the territory of the State.
(2) Development of specially supported territories shall be
promoted by means of a special credit policy, tax relief, and
resources from the Regional Fund which resources shall ensure
additional opportunities to finance projects the implementation
of which in the relevant territory promotes economic activity,
creates new and protects existing jobs and promotes improvement
of the standard of living of the residents of such territory.
Section 24. Determination of a
Specially Supported Territory
The status of specially supported territory shall be granted
and terminated by the planning region development councils in
accordance with procedures prescribed by the Cabinet.
Transitional Provisions
1. With the coming into force of this Law, the Law on the
Specially Supportable Regions is repealed (Latvijas Republikas
Saeimas un Ministru Kabineta Ziņotājs, 1997, No. 13; 1999,
No. 10).
2. The Regional Development Council, established in accordance
with the Law on the Specially Supportable Regions, shall continue
to perform its functions until the establishment of the National
Regional Council.
3. The status of specially supported region, granted in
accordance with the Law on the Specially Supportable Regions,
shall be in force until 27 June 2004.
4. The Regional Fund established in accordance with the Law on
the Specially Supportable Regions shall continue its operation
until the moment the Regional Fund provided for in this Law is
established which Fund shall be its successor in rights and
obligations.
5. The Cabinet shall:
1) by 1 September 2002, issue the regulations and
recommendations provided for by Section 6 of this Law, offer
proposals in respect of the territories of the planning regions
and determine procedures by which the issue regarding the
territories of the planning regions shall be co-ordinated with
the local governments located therein;
2) by 15 October 2002, determine the territories of the
planning regions provided for in Section 5 of this Law;
3) by 1 January 2003, approve the by-laws of the National
Regional Development Council provided for in Section 15,
Paragraph three of this Law;
4) by 31 December 2003, issue the regulations provided for in
Section 6, Paragraph two of this Law regarding the procedures for
development, implementation, monitoring and public discussion of
the National Development Plan;
5) by 1 September 2003, issue the regulations provided for in
Section 14, Clause 2, and Section 21, Paragraph three of this
Law;
6) by 1 October 2003, in accordance with Section 20,
Paragraphs one and three of this Law, establish the Regional Fund
and approve the by-laws thereof;
7) by 31 January 2008, issue the regulations provided for in
Section 14, Clauses 5 and 6 of this Law; and
8) by 30 December 2009, issue the regulations provided for in
Section 14, Clause 7 of this Law.
6. Planning region development councils referred to in Section
5 of this Law shall, within a period of two months after the
Cabinet has approved the borders of a planning region, appoint
their representative for work in the National Regional
Development Council.
7. [10 March 2005]
8. [13 February 2003]
9. Until establishment of the planning regions provided for by
this Law, the functions of the planning regions shall be
performed by the planning regions established in accordance with
the Territorial Development Planning Law.
10. A Planning Region Development Council, which has been
established and operating up to 1 August 2006, shall be deemed to
be the derived public person decision-taking institution referred
to in Section 5, Paragraph one of this Law until the day when the
Planning Region Development Council is elected in conformity with
the provisions of Section 17, Paragraph one of this Law.
[19 December 2002; 13 February
2003; 22 June 2006; 8 November 2007]
This Law has been adopted by the Saeima on 21 March
2002.
Acting for the President,
Chairperson of the Saeima J. Straume
Rīga, 9 April 2002
Transitional Provisions Regarding
Amendments to the Regional Development Law
Transitional
Provision
(regarding amending law of 13
February 2003)
With the coming into force of this Law, Cabinet Regulation No.
4, Amendments to the Regional Development Law (Latvijas
Vēstnesis, 2003, No. 4) issued in accordance with Article 81
of the Constitution of the Republic of Latvia is repealed.
Transitional
Provision
(regarding amending law of 10 March
2005)
With the coming into force of this Law, Cabinet Regulation No.
23, Amendments to the Regional Development Law (Latvijas
Vēstnesis, 2005, No. 7) issued in accordance with Article 81
of the Constitution of the Republic of Latvia is repealed.
Transitional
Provision
(regarding amending law of 26 April
2007)
With the coming into force of this Law, Cabinet Regulation No.
36, Amendments to the Regional Development Law (Latvijas
Republikas Saeimas un Ministru Kabineta Ziņotājs, 2007, No.
3) issued in accordance with Article 81 of the Constitution of
the Republic of Latvia is repealed
1 The Parliament of the Republic of
Latvia
Translation © 2008 Tulkošanas un terminoloģijas
centrs (Translation and Terminology Centre)