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Annex V. National legislation applicable

This chapter indicates national legal basis for public funding of relevant structural measures in Lithuania and gives the main definitions that are important to this issue.

Administration and financial control of public funding is carried out with regard to the legal acts that are also indicated in this.

Specific national legislation applicable for implementation of SAPARD measures under this programme is indicated in chapter 5.2.

5.1 Overview of general provisions applicable to public finding

5.1.1 Public procurement

Public procurement rules should be applied for implementation of the rural infrastructure related projects of this programme (Measure 4). Public procurement rules are enacted in the following national legal acts:

-         Law No.VIII-1210 On Public Procurement, adopted on 03 June 1999;

Amended by Law No.VIII-1349 On the Amendment of Articles 14, 32 of the Law On Public Procurement, adopted on 5 October 1999;

-         Government Resolution No.1002 On Implementation of the Law On Public Procurement, adopted on 16 September 1999;

-         Government Resolution No.1079 On Adoption of the Order on Procurement of Goods, Works and Services the Value of which is Lower than Indicated  in Article 1, Part 1 of the Law On Public Procurement, adopted on 29 September 1999;

-         Government Resolution No.1090 On Adoption of the Statute of the Public Procurement Service under the Government of the Republic of Lithuania, adopted on 30 September 1999.

The legal basis on the public procurement defines:

-         the procuring entity (it is the public authority, an enterprise, institution or organisation at the national as well as the regional level, if goods, services and works procured are fully or partially reimbursed from the national budget);

-         the public procurement procedures (open tendering, closed tendering (two-stage), single-source procurement, request for quotations);

-         formation of the public procurement agreement;

-         order to appeal.

5.1.2 Administration of public funding

Allocation of the national budget in Lithuania is the responsibility of the Ministry of Finance. This is enacted by:

Law No.I-430 On Budgeting, adopted on 30 July 1990;

Amended by Law No.I-2914 On Partial Amendment of the Law on Budgeting, adopted on 24 September 1992;

Amended by Law No.I-3072 On Amendment of Article 31 of the Law on Budgeting, adopted on 19 November 1992;

Amended by Law No.I-271 On Amendment of the Law on Budgeting, adopted 12 October 1993;

Amended by Law No.I-793 On Amendment of the Law on Budgeting, adopted on 14 February 1995;

Amended by Law No.I-901 On Amendment of the Law on Budgeting, adopted on 23 May 1995;

Amended by Law No.I-1080 On Amendment of Certain Laws and Other Legal Acts, Related to the Law On the Order for Privileges when Using the Public Transportation and Compensation of Public Transportation Expenditures for Officials, Civil Servants and Other Individuals Falling under Certain Categories, adopted on 31 October 1995;

Amended by Law No.I-1333 On Amendment of Articles 1, 2 and 21-1 of the Law on Budgeting, adopted on 14 May 1996;

Amended by Law No.I-1372 On Amendment of Article 12 of the Law on Budgeting, adopted on 06 June 1996;

Amended by Law No.VIII-236 On Amendment of Articles 1, 13, 14 and supplement of Article 12(1) of the Law on Budgeting, adopted on 05 June 1997;

Amended by Law No.VIII-386 On Supplement of Articles 28(1), 28(2) as Amendment of Articles 4, 12, 28, 33 of the Law on Budgeting, adopted on 02 July 1997.

Every year the income and expenditures of the national budget are being enacted by:

-         Law on Confirmation of Financial Indexes of the State Budget and the Municipal Budgets.

This law indicates the exact number of expenditure foreseen for the implementation of the national agricultural development programme (regarding the measures of the Rural Support Fund).

The legal basis on the procedure of allocations from the Rural Support Fund (RSF) is:

- Government Resolution No.213 On the Establishment of the Rural Support Fund, adopted on 12 March 1997;

       Amended by Government Resolution No.320, adopted on 20 March 1998;

       Amended by Government Resolution No.815, adopted on 12 July 1999;

- Order No.743 On the Provisions of Formation and Use of the Rural Support Fund, adopted on 31 December 1997 by the Minister of Agriculture;

Amended by Order No.330 of the Minister of Agriculture, adopted on 31 December 1998;

- Order No.332 On the Procedure of Formation and Use of the Rural Support Fund, adopted on 31 December 1998 by the Minister of Agriculture.

5.1.3 Organisation of financial control

Public funding performance is supervised by the State Control. Legal grounds of the State Control activities, functions of the State Control, rights and duties of the State Controls officers, procedure for exercising control, parliamentary control over the State Control activities are enacted by:

-         Law No.I-907 On State Control, adopted on 30 May 1995;

Amended by Law No.VIII-467 On Amendment of Article 35 of the Law on State Control, adopted on 21 October 1997;

Amended by Law No.VIII-672 On Recognition of Invalidity of Article 55 of the Law on State Control, adopted on 19 March 1998;

Amended by Law No.VIII-692 On Amendment of Articles 2, 10, 11, 35, 37, 42 of the Law on State Control, adopted on 04 April, 1998;

Amended by Law No.VIII-1075 On Amendment of Article 35 of the Law on State Control, adopted on 11 February 1999.

Audit of the Rural Support Fund financial transactions are also carried out by the Internal Audit and Control Board within the Law department of the Ministry of Agriculture. Legal basis for their activities will be enacted until the end of 1999 by:

-         Draft Government Resolution On Approval of Standard Provisions of Internal Audit Board within the Enterprises, Institutions of the Public Sector.

5.2 Specific national legislation applicable

5.2.1 National legislation applicable to Measure 1 “Investments in Agricultural Holdings”:

- Law No.I-734 On the State Regulation of Economic Relations in Agriculture, adopted on 22 December 1994;

Amended by Law No.I-1621, adopted on 14 November 1996;

Amended by Law No.VIII-441, adopted on 09 October 1997;

- Law No.VIII-1180 On the State Support for Start-up Farmers, adopted on 11 May 1999;

- Law No.VIII-1159 On Farmers Farm, adopted on 04 May 1999;

- Government Resolution No.213 On the Establishment of the Rural Support Fund, adopted on 12 March 1997;

       Amended by Government Resolution No.320, adopted on 20 March 1998;

       Amended by Government Resolution No.815, adopted on 12 July 1999;

- Order No.743 On the Provisions of Formation and Use of the Rural Support Fund, adopted on 31 December 1997 by the Minister of Agriculture;

Amended by Order No.330 of the Minister of Agriculture, adopted on 31 December 1998;

- Order No.332 On the Procedure of Formation and Use of the Rural Support Fund, adopted on 31 December 1998 by the Minister of Agriculture;

5.2.2 National legislation applicable to Measure 2 “Improving Processing and Marketing of Agricultural and Fishery Products”:

- Law No.I-734 On the State Regulation of Economic Relations in Agriculture, adopted on 22 December 1994;

Amended by Law No.I-1621, adopted on 14 November 1996;

Amended by Law No.VIII-441, adopted on 09 October 1997;

- Government Resolution No.213 On the Establishment of the Rural Support Fund, adopted on 12 March 1997;

       Amended by Government Resolution No.320, adopted on 20 March 1998;

       Amended by Government Resolution No.815, adopted on 12 July 1999;

- Order No.743 On the Provisions of Formation and Use of the Rural Support Fund, adopted on 31 December 1997 by the Minister of Agriculture;

       Amended by Order No.330 of the Minister of Agriculture, adopted on 31 December 1998;

- Order No.332 On the Procedure of Formation and Use of the Rural Support Fund, adopted on 31 December 1998 by the Minister of Agriculture;

5.2.3 National legislation applicable to Measure 3 “Development and Diversification of Economic Activities, Providing for Multiple Activities and Alternative Income”:

- Law No.I-734 On the State Regulation of Economic Relations in Agriculture, adopted on 22 December 1994;

Amended by Law No.I-1621, adopted on 14 November 1996;

Amended by Law No.VIII-441, adopted on 09 October 1997;

- Law No.VIII-1180 On the State Support for Start-up Farmers, adopted on 11 May 1999;

- Law No.VIII-1159 On Farmers Farm, adopted on 04 May 1999;

- Government Resolution No.213 On the Establishment of the Rural Support Fund, adopted on 12 March 1997;

       Amended by Government Resolution No.320, adopted on 20 March 1998;

       Amended by Government Resolution No.815, adopted on 12 July 1999;

- Order No.743 On the Provisions of Formation and Use of the Rural Support Fund, adopted on 31 December 1997 by the Minister of Agriculture;

       Amended by Order No.330 of the Minister of Agriculture, adopted on 31 December 1998;

- Order No.332 On the Procedure of Formation and Use of the Rural Support Fund, adopted on 31 December 1998 by the Minister of Agriculture;

5.2.4 National legislation applicable to Measure 4 “Improvement of Rural Infrastructure”:

- Law No.I-734 On the State Regulation of Economic Relations in Agriculture, adopted on 22 December 1994;

Amended by Law No.I-1621, adopted on 14 November 1996;

Amended by Law No.VIII-441, adopted on 09 October 1997;

- Law No.VIII-1180 On the State Support for Start-up Farmers, adopted on 11 May 1999;

- Government Resolution No.213 On the Establishment of the Rural Support Fund, adopted on 12 March 1997;

       Amended by Government Resolution No.320, adopted on 20 March 1998;

       Amended by Government Resolution No.815, adopted on 12 July 1999;

- Order No.743 On the Provisions of Formation and Use of the Rural Support Fund, adopted on 31 December 1997 by the Minister of Agriculture;

       Amended by Order No.330 of the Minister of Agriculture, adopted on 31 December 1998;

- Order No.332 On the Procedure of Formation and Use of the Rural Support Fund, adopted on 31 December 1998 by the Minister of Agriculture;

- Law No.I-323 On Land Reclamation, adopted on 09 December 1993;

       Amended by Law No.I-943, adopted on 13 June 1995;

       Amended by Law No.VIII-243, adopted on 10 June 1997;

       Amended by Law No.VIII-313, adopted on 26 June 1997;

5.2.5 National legislation applicable to Measure 5 “Afforestation of agricultural lands and improvement of forest infrastructure”:

- Forest Law, Nr. I –671, adopted November 22, 1999, amended in 1996,1999)

- The order for the approval of the Forest Management Plans, Nr. 244, adopted February 14,  1995

- The decision of the Government on Regulations on Management and Harvesting in Private Forests, No 799, Adopted July 1997, updated in 2000

- Decision of the Government on the order for the afforestation on private land No.425, adopted April 9, 1998

- Order of the MoE and MoA on the protection and use of the forests in the Protected Areas No 77/84, adopted May 8, 1996

- Law on land, Nr I-446, adopted April 26, 1994

- Order of the MoA and MoE concerning the main principles of the increase of forest cover of Lithuania and the measures for implementation in 1999-2003, No 240/324, adopted July 29, 2000

- Order of the MoA and  MoE concerning the rules for the preparation of the land management schemes for the designation of afforestation areas Nr 139/89, adopted April 7, 1999

- National regulations on Natural and Artificial establishment of Forests, 1993, currently being updated

5.2.6 National legislation applicable to Measure 6 “Enviromentlly friendly agricultural methods

-         Law No. I-734 on the State Regulations of Economic Relations in Agriculture, adopted on 22 December 1994, last amended on 28 March 2000;

-         Law No. I-2223 on Environmental Protection, adopted on 21 January 1992;

-         Law No. I-301 on Protected areas, adopted on 9 September 1993, last amended on 27 June 2000;

-         Law No. VIII-471 on Water, adopted on 21 October 1997

-         Law No. VIII-499 on Protected Animal, Plant and Fungi Species and Communities, adopted on 6 November 1997;

-         Law No. VIII-500 on Animal Care, Housing and Use, adopted on 6 November 1997;

-         Law No. VIII-769 on Plant Protection, adopted on 4 June 1998;

-         Government Resolution No. 343 on Special Conditions of Land and Forest Use, adopted on 12 May 1992, last amended on 3 December 1999;

-         Government Resolution No. 719 on the Programme on Underground Water Protection against Pollution and Development of Organic and Environmentally friendly Farming in Intensive Karst Region, adopted on 17 September 1993;

-         Government Resolution No. 213 on the Establishment of the Rural Support Fund, adopted on 12 March 1997;

-         Order No. 113, on Establishment of the Rural Support Fund and its Order of Use, Annex 5 on Organic Agriculture Target Programme, adopted 4 April 2000 by the Minister of Agriculture;

-         Order No. 178 on Prevention Means for Reduction of Spread Pollution from Agricultural Sources, adopted on 11 September 1998  by the Minister of Agriculture;

-         Order No. 426 on Environmental Requirements for Manure and Leakage Management, adopted on 27 December 1999 by the Minister of Environment;

-         Order on Design, Installation, Preservation and Liquidation of Bore Wells for Water Supply and Thermal Energy Use, adopted in 1999 by the Minister of Environment;

-         Order on Waste Pollution Norms (LAND 10-96), adopted in 1997 by the Minister of Environment;

-         Order on Environmental Rules on Design and exploitation of Domestic Wastewater Filtration Facilities (LAND 21-97), adopted in 1997 by the Minister of Environment;

-         Lithuanian Code of Good Agricultural Practice, 2000.

5.2.7 National legislation applicable to Measure 7 “Vocational training” and 8 “Technical Assistance, Information and Publicity”:

- Law No.I-734 On the State Regulation of Economic Relations in Agriculture, adopted on 22 December 1994;

Amended by Law No.I-1621, adopted on 14 November 1996;

Amended by Law No.VIII-441, adopted on 09 October 1997;

- Law No.VIII-1180 On the State Support for Start-up Farmers, adopted on 11 May 1999;

- Government Resolution No.213 On the Establishment of the Rural Support Fund, adopted on 12 March 1997;

       Amended by Government Resolution No.320, adopted on 20 March 1998;

       Amended by Government Resolution No.815, adopted on 12 July 1999;

- Order No.743 On the Provisions of Formation and Use of the Rural Support Fund, adopted on 31 December 1997 by the Minister of Agriculture;

       Amended by Order No.330 of the Minister of Agriculture, adopted on 31 December 1998;

- Order No.332 On the Procedure of Formation and Use of the Rural Support Fund, adopted on 31 December 1998 by the Minister of Agriculture;

- Government Resolution No.935 On Verification of the Minimum Farming Skills, Farmer Vocational Training and Establishment of Consulting System for Natural and Legal Persons Involved in Agricultural Activities, adopted on 09 December 1992;

         Amended by Government Resolution No.218, adopted on 02 April, 1993;

         Amended by Government Resolution No.846, adopted on 16 November, 1993;

         Amended by Government Resolution No.173, adopted on 03 February, 1995.

- Law No.VIII-220 On Agricultural Chamber, adopted on 20 May, 1997.

Legal acts indicated in part 9.2 will create the legal framework for implementation of SAPARD measures.

In order to fully harmonise the national legal framework with the acquis communautaire, the following legal acts (among those indicated in part 9.2) until the end of 1999 will be amended:

- Law No.I-734 On the State Regulation of Economic Relations in Agriculture, adopted on 22 December 1994;

- Government Resolution No.213 On the Establishment of the Rural Support Fund, adopted on 12 March 1997;

- Order No.743 On the Provisions of Formation and Use of the Rural Support Fund, adopted on 31 December 1997 by the Minister of Agriculture;

- Order No.332 On the Procedure of Formation and Use of the Rural Support Fund, adopted on 31 December 1998 by the Minister of Agriculture.

 

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