2007-2013 Structural Assistance Act

Link to law: https://www.riigiteataja.ee/en/eli/ee/Riigikogu/act/510082015006/consolide
Published: 2015-09-01

2007-2013 Structural Assistance Act

Passed 07.12.2006
RT I 2006, 59, 440
Entry into force 01.01.2007
Amended by the following legal instruments (show)

Passed
Published
Entry into force

05.06.2008
RT I 2008, 24, 157
14.06.2008, partially 01.01.2009

10.06.2009
RT I 2009, 34, 227
01.07.2009

22.04.2010
RT I 2010, 22, 108
01.01.2011, entry into force on the date determined in the Decision of the Council of the European Union regarding the abrogation of the derogation established in respect of the Republic of Estonia on the basis provided for in Article 140 (2) of the Treaty on the Functioning of the European Union, Council Decision 2010/416/EU of 13 July 2010 (OJ L 196, 28.07.2010, pp. 24-26).

13.01.2011
RT I, 03.02.2011, 1
13.02.2011, partially 01.01.2012

19.02.2014
RT I, 13.03.2014, 4
01.07.2014

19.06.2014
RT I, 29.06.2014, 109
01.07.2014, the official titles of the ministers have been replaced on the basis of subsection 107³ (4) of the Government of the Republic Act.

11.06.2015
RT I, 30.06.2015, 4
01.09.2015, partially 01.07.2015

Chapter 1 GENERAL PROVISIONS 

§ 1.  Scope of application of Act

(1) This Act provides for the bases of and procedure for the grant, use, reclamation and repayment of structural assistance, and the bases for state and administrative supervision over the grant and use of structural assistance and the procedure for challenge proceedings.
[RT I, 13.03.2014, 4 - entry into force 01.07.2014]
(2) This Act applies to the grant and use of the funds allocated for structural assistance based on the operational programme approved by the European Commission (hereinafter Commission) on the basis of Article 32 (5) of Council (hereinafter Council) Regulation (EC) No 1083/2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999 (OJ L 210, 31.07.2006, pp. 25-69).
(3) The provisions of § 2, subsection 3 (4), §§ 5 and 14, subsection 21 (1), § 22, subsections 25 (1), (2), (4), (5) (7) and (8), § 26, subsections 27 (1)-(5), § 28, subsections 30 (2) and (3), subsection 31 (1), clauses 31(2) 1)-5) and subsection 31 (4), §§ 32 and 33 and Chapter 8 of this Act apply to the grant and use of structural assistance based on the operational programmes of European territorial cooperation (hereinafter European Territorial Cooperation) objective specified in Article 3 (2) (c) of Council Regulation (EC) No 1083/2006.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
(4) The provisions of § 2, subsection 3 (5), § 14, subsection 21 (1), § 22, subsections 26 (22), (4), (6), (8) and (9), subsections 27 (1), (2) and (5), § 28, subsection 31 (1), clauses 31(2) 1)-5) and subsection 31 (4) and Chapter 8 of this Act apply to cross-border cooperation programmes carried out based on Regulation (EC) No 1638/2006 of the European Parliament and of the Council laying down general provisions establishing a European Neighbourhood and Partnership Instrument (OJ L 310, 09.11.2006, pp 1-14).
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
(41) The provisions of this Act with regard to the recipients also extend to the Estonian partner of the project carried out within the framework of the operational programmes specified in subsections (3) and (4) of this section.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
(5) The provisions of the Administrative Procedure Act apply to the proceedings prescribed in this Act, taking account of the specifications arising from this Act.

§ 2.  Definitions

For the purposes of this Act:
1) "structural assistance" (hereinafter assistance) means financial support granted from the funds of the structural funds specified in Article 1 of Council Regulation (EC) No 1083/2006 and the Cohesion Fund and the European neighborhood and partnership instrument specified in Regulation (EC) No 1638/2006 of the European Parliament and of the Council or by the Estonian state from additional funds which are allocated for the specific purpose of co-financing the use of such funds;
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
2) "eligible expenditure" means the expenditure which is justified, reasonable and necessary for carrying out a project and which is incurred in conformity to the requirements provided by legislation or the requirements provided in the decision to satisfy the application for assistance and which has not been compensated for by the European Union, foreign aid funds or by the Estonian state from additional funds which are allocated for the specific purpose of co-financing the use of such funds;
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
3) "self-financing" means the monetary contribution or contribution measurable in money made to a project by a recipient or a partner. Only eligible expenditure incurred by a recipient or a partner shall be included in self-financing. Self-financing shall not be included in the assistance and assistance shall not be used for self-financing;
[RT I 2009, 34, 227 - entry into force 01.07.2009]
4) "measure" means a set of actions applied for the purpose of achieving the goals set by the operational programme;
5) "project" means a single action or a set of actions limited by time and space and directed towards the achievement of a certain objective for the implementation of which support is applied for or used;
6) "eligibility period of project" means a period determined by the decision to satisfy the application for assistance, investment plan, programme, administrative contract concluded with the person implementing the programme or the eligibility criteria of the measure, during which the actions of the project are commenced and terminated, and the expenditure necessary for implementation of the project is incurred;
7) "structural assistance and self-financing audit" (hereinafter audit) means the activity provided by Article 62 (1) (a) and (b) and 71 (2) of Council Regulation (EC) 1083/2006;
8) "applicant for assistance" (hereinafter applicant) means a natural person, legal person, state agency or local government body that has submitted an application for receiving assistance;
9) "recipient" means a natural person, legal person, state agency or local government body whose application for receipt of assistance has been satisfied, or that is a recipient pursuant to the provisions of the eligibility criteria of the measure, programme or administrative contract entered into with the person implementing the programme, the operational programme for European territorial cooperation objective or its annexes or the joint operational programme of the European Neighbourhood and Partnership Instrument (hereinafter ENPI);
[RT I 2008, 24, 157 - entry into force 14.06.2008]
10) "partner" means a natural person, legal person, state agency or local government body specified by the recipient in an application for assistance or in the programme, who carries out the actions supported by the project or the programme and incurs eligible expenditures.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011 – applied retrospectively from 1 July 2009]

§ 3.  National strategic reference framework and operational programmes

(1) The general bases for the grant and use of assistance shall be provided by the national strategic reference framework within the meaning of Article 27 (1) of Council Regulation (EC) 1083/2006 and the operational programmes within the meaning of Article 2 (1) of Council Regulation (EC) 1083/2006.
(2) The national strategic reference framework and any amendments thereto shall be approved by the Government of the Republic. The Commission shall make the decision specified in Article 28 (3) of Council Regulation (EC) No 1083/2006 concerning the national strategic reference framework.
(3) The operational programme and any amendments thereto shall be approved by the Government of the Republic and, in compliance with Article 32 (5) of Council Regulation (EC) No 1083/2006, by the Commission.
(4) In the case of European territorial cooperation, an operational programme complying with Article 12 of Regulation (EC) No 1080/2006 of the European Parliament and of the Council on the European Regional Development Fund and repealing Regulation (EC) No 1783/1999 (OJ L 210, 31.07.2006, pp. 1-11) shall be approved by the Government of the Republic and the amendments to an operational programme shall be approved by the monitoring committee specified in Article 63 of Council Regulation (EC) No 1083/2006. An operational programme and any amendments thereto shall be adopted by the Commission in compliance with Article 32 (5) of Council Regulation (EC) No 1083/2006.
[RT I 2008, 24, 157 - entry into force 14.06.2008]
(5) In the case of ENPI, a joint operational programme complying with Article 4 of Commission Regulation (EC) No 951/2007 laying down implementing rules for cross-border cooperation programmes financed under Regulation (EC) No 1638/2006 of the European Parliament and of the Council laying down general provisions establishing a European Neighbourhood and Partnership Instrument (OJ L 210, 10.08.2007, pp. 10-25) shall be approved by the Government of the Republic and the amendments to an operational programme shall be approved by the Joint Monitoring Committee specified in Article 11 (1) of Commission Regulation (EC) No 951/2007. An operational programme and any amendments thereto shall be adopted by the Commission in compliance with Article 5 (5) and Article 7 (3) of Commission Regulation (EC) No 951/2007.
[RT I 2008, 24, 157 - entry into force 14.06.2008]

§ 4.  Register of structural assistance

(1) The register of structural assistance (hereinafter register) is a database founded in accordance with the Public Information Act.
[RT I 2008, 24, 157 - entry into force 14.06.2008]
(2) The register shall contain statistical and financial information on the basis of which:
1) record is kept concerning the grant and use of assistance for the submission of necessary data to the Commission;
2) record is kept concerning the grant and use of assistance for the direction and supervision of the grant and use of assistance;
3) assistance is paid.
(3) The statutes for maintenance of the register shall be approved by the Government of the Republic.
(4) The procedure for use of the register shall be approved by the minister responsible for the area.

§ 5.  Preservation of documents

The documents related to the grant and use of assistance shall be preserved on paper or electronically until at least 31 December 2025. In the case specified in Article 88 of Council Regulation (EC) No 1083/2006, the documents shall be preserved until the date determined by the Government of the Republic.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]

Chapter 2 BODIES ORGANISING GRANT OF ASSISTANCE 

§ 6.  Accreditation and grant of authorisation

(1) "Accreditation" means declaring the managing and control systems of a legal person in private law, government agency or state agency administered by a government agency to be conforming to the requirements provided in Article 58 of Council Regulation (EC) No 1083/2006 which is the prerequisite for performing the functions of a 2nd level intermediate body.
(2) If the functions of a 2nd level intermediate body are performed by an implementing entity or managing authority, they shall be accredited in the part of performance of the functions of the 2nd level intermediate body.
(3) The Government of the Republic shall make a decision to accredit or refuse to accredit a person based on a proposal by the minister responsible for the area.
(4) By making a decision to accredit a person, the Government of the Republic also authorises the accredited person to perform the functions of 2nd level intermediate body.
(5) The conditions and procedure for accreditation shall be established by the Government of the Republic.

§ 7.  Managing authority

(1) "Managing authority" within the meaning of Article 59 (1) (a) of Council Regulation (EC) No 1083/2006 means a ministry appointed by the Government of the Republic.
(2) Pursuant to this Act, the functions of a managing authority are:
1) ensuring the compliance of the managing and control systems of the operational programmes to the requirements provided in Article 58 of Council Regulation (EC) No 1083/2006 and other legislation, and taking necessary measures in the case of deficiencies;
2) preparation of the description of the managing and control systems of the operational programmes and submission thereof to the Commission pursuant to the provisions of Article 71 of Council Regulation (EC) No 1083/2006;
3) performance of the functions of the chief processor of the register within the meaning of the Databases Act;
4) other functions imposed on the managing authority by this Act or other legislation.
(3) In order to perform the functions of a managing authority, a person authorised by the managing authority has the right to inspect the documents related to the grant and use of assistance by the 1st level intermediate bodies and 2nd level intermediate bodies and the use of assistance by the recipients.

§ 8.  Paying authority

(1) "Paying authority" within the meaning of Article 59 (1) (b) of Council Regulation (EC) No 1083/2006 means a ministry appointed by the Government of the Republic. A paying authority shall perform the functions specified in Article 61 of Council Regulation (EC) No 1083/2006 and other functions provided by this Act and other legislation.
(2) In order to perform the functions of a paying authority, a person authorised by the paying authority has the right to inspect the documents on which the financial reporting of the managing authorities, 1st level intermediate bodies and 2nd level intermediate bodies and recipients of the assistance is based.

§ 9.  Audit authority

(1) "Audit authority" within the meaning of Article 59 (1) © of Council Regulation (EC) No 1083/2006 means a ministry appointed by the Government of the Republic. An audit authority shall perform the functions specified in Articles 62, 88 (2) and 98 of Council Regulation (EC) No 1083/2006 and other functions provided by this Act and other legislation.
(2) In order to perform the functions of an audit authority, a person and an agency authorised by the audit authority has the right to audit managing and paying authorities, 1st level intermediate bodies and 2nd level intermediate bodies and recipients of the assistance. Such agencies and persons shall allow the audit to be carried out and provide all possible assistance to authorised persons, including enabling access to data and documents for verifying the accuracy of information and allow to stay in the premises and territory related to the provision and use of the assistance.
(3) The Government of the Republic shall establish the procedure for submission of the declaration for performance of the audit and the closure declaration specified in Article 62 (1) (e) and the declaration for partial closure specified in Article 62 (1) (d) (iii) of Council Regulation (EC) No 1083/2006.

§ 10.  1st level intermediate body

(1) A 1st level intermediate body shall be a ministry appointed by the Government of the Republic or the State Chancellery.
(2) The functions of a 1st level intermediate body are:
1) development and approval of a measure;
2) planning of funds for implementation of a measure;
3) development of principles for grant of assistance and establishment of corresponding legislation;
4) consultation of 2nd level intermediate bodies upon implementation of a measure;
5) submission of data necessary for preparation of reports concerning the grant and use of assistance;
6) other functions imposed on the 1st level intermediate body by this Act or other legislation issued on the basis thereof.

§ 11.  2nd level intermediate body

(1) A 2nd level intermediate body is a government agency, state agency administered by a government agency or a legal person in private law appointed by the Government of the Republic and authorised to perform the functions of a 2nd level intermediate body pursuant to subsection 6 (4) of this Act.
(2) For performance of the functions of a 2nd level intermediate body, a 1st level intermediate body shall enter into an administrative contract with a legal person in private law pursuant to the procedure provided by the Administrative Co-operation Act (hereinafter administrative contract).
(3) The functions of a 2nd level intermediate body are:
1) provision of information on the possibility to receive assistance;
2) processing of the applications for assistance;
3) provision of explanations in issues relating to the grant and use of assistance to applicants and recipients;
4) submission of data necessary for preparation of reports concerning the grant and use of assistance;
5) preparation and publication of reviews concerning the grant and use of assistance;
6) performance of other duties imposed on the 2nd level intermediate body by law, legislation issued on the basis thereof, or administrative contracts.
(4) If, based on the eligibility criteria of a measure, programme or administrative contract, the duties of a 2nd level intermediate body are performed by a 1st level intermediate body or managing authority, the provisions of this Act concerning 2nd level intermediate bodies apply to such agencies upon performance of such duties.
(5) If the person or agency specified in subsection (1) of this section, or a 1st level intermediate body or managing authority performing the tasks of a 2nd level intermediate body fails to perform the tasks of a 2nd level intermediate body imposed thereon, the Government of the Republic shall decide, based on a proposal of the minister responsible for the area, to suspend, continue or terminate the authority of such person or agency, and shall decide on further performance of the tasks of the 2nd level intermediate body.

Chapter 3 GRANT OF ASSISTANCE 

§ 12.  General principles for grant of assistance

(1) Assistance may be granted as repayable or non-repayable assistance. Assistance may be granted to a project the need for the assistance of which at the time of deciding on granting assistance is justified and which helps to achieve the objectives specified in the operational programme.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
(2) Assistance is granted based on open application, investment plan or programme.
(3) Assistance in the form of a loan or security for a loan is granted on the bases and pursuant to the procedure provided by the Support of Enterprise and State Loan Guarantees Act.
(4) The eligibility criteria for a measure shall be established by the head of a 1st level intermediate body. If the State Chancellery acts as a 1st level intermediate body, the eligibility criteria shall be established by the Government of the Republic. The eligibility criteria of a measure shall provide the conditions and procedure for the grant and use of assistance for implementation of the measure.
(5) The eligibility criteria of a measure or a programme shall be coordinated with the minister responsible for the area. The amendment of the programme shall be coordinated if the objective of the measure, including the sub-objective, or the rate of assistance changes or if the whole budget increases or decreases.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]

§ 13.  Eligibility criteria of measure upon open application

If assistance is granted based on open application, the eligibility criteria of the measure shall provide for:
1) the objective for granting the assistance and the activities supported;
2) expenses eligible and not eligible for assistance;
3) the maximum rate of assistance and, where self-financing is needed, also the minimum rate of self-financing;
4) where necessary, the possibility to accept applications for a specific activity, region, target group or part of the budget of the measure;
5) requirements for an applicant;
6) requirements for an application for assistance (hereinafter application);
7) the criteria and procedure for evaluation of applications, including the minimum criteria for evaluation and where necessary, also the requirements for the persons involved in the evaluation;
8) the terns and procedure for satisfaction of an application and refusal to satisfy an application;
9) the terms and procedure for amendment or revocation of decision to satisfy application;
10) the obligations of the recipient;
11) the terms and procedure for submission of information and reports related to the grant and use of assistance and where necessary, the formats for reports;
12) the procedure for payment of assistance;
13) additional requirements for documents transmitted by means of electronic data communications, as necessary;
14) the requirements for the performance of procurements if recipients or partners need not comply with the Public Procurement Act.
[RT I 2009, 34, 227 - entry into force 01.07.2009]

§ 14.  Requirements for applicants and obligations of applicants

(1) The following requirements may be established for applicants in the eligibility criteria of a measure:
1) the applicant is solvent;
2) the applicant is economically sustainable;
3) the applicant has the means necessary for carrying out the project;
4) the applicant has paid back, in a timely manner, the sums subject to repayment on the basis of the 2004-2006 Structural Assistance Act and this Act or in the case of repayment of assistance in instalments, has made the reimbursements by the term and in the amount prescribed;
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
5) the applicant has not received money from budgetary, European Union or foreign aid funds for compensation of the same expenses before;
6) if assistance is simultaneously applied for the project or separate activities of the project from several measures or other budgetary, European Union or foreign aid funds, the applicant shall submit information to such effect;
7) the applicant has the qualifications, experience or legal abilities necessary for carrying out the project;
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
8) the applicant adheres to environmental, safety and hygiene requirements;
9) the place of business of an applicant who is a resident or the permanent business establishment within the meaning of the Taxation Act of an applicant who is non-resident is Estonia;
10) requirements for the legal form of the applicant or person with a holding in the applicant;
11) requirements for the time during which the applicant has engaged in the relevant area of activity;
12) the applicant conforms to other requirements provided by the eligibility criteria of the measure or, in the case of European territorial cooperation, the operational programme, or in the case of ENPI, the joint operational programme.
[RT I 2008, 24, 157 - entry into force 14.06.2008]
(2) An applicant is required to:
1) submit at the request of a person processing the application additional information concerning the applicant and application in the format and within the term provided by the eligibility criteria;
2) enable the inspection of the conformity of the applicant and application to the requirements, including on-the-spot visits of inspection;
3) promptly inform the person processing the application of any changes in the data submitted in the application or of facts that have become evident which may affect making the decision concerning the application;
4) provide proof at the request of the person processing the application, of the existence of the self-financing provided by the eligibility criteria of the measure or other means or documents.

§ 15.  Requirements for applications

(1) The application shall meet the following requirements:
1) the application is submitted pursuant to the procedure and in the format prescribed by the eligibility criteria of the measure;
2) assistance is applied for activities which are eligible for assistance as provided by the eligibility criteria of the measure;
3) the amount of assistance applied for does not exceed the rate of assistance provided by the eligibility criteria of the measure;
4) the project activities presented by the application shall be finished not later than by 31 December 2015;
[RT I 2009, 34, 227 - entry into force 01.07.2009]
5) the required self-financing is included, among other items, in the budget of the project contained in the application;
51) in the case of involvement of a partner, the partner and the contribution thereof to the project shall be set out in the application;
[RT I 2009, 34, 227 - entry into force 01.07.2009]
6) the information presented in the application is complete and accurate;
7) the application has been autographically or digitally signed by the applicant or a person authorised to represent the applicant, or the person submitting the application has been identified in another electronic manner prescribed by the eligibility criteria of the measure.
(2) If deficiencies are discovered in the course of verification of the conformity of the application to the requirements, the applicant shall immediately be notified thereof and a term for eliminating the deficiencies shall be granted. The term for processing the application may be extended by the time granted for elimination of the deficiencies.
(3) An application shall not be declared suitable if at least one of the following circumstances exists:
1) the application does not comply with the requirements provided for in subsection (1) of this section or the eligibility criteria;
2) the application contains inaccurate or incomplete information or the applicant attempts to influence the processing of the application through fraud or threats, or in any other unlawful manner;
3) the applicant fails to provide an opportunity for verification of the compliance of the application with the requirements or for conduct of an on-the-spot visit of inspection;
4) the applicant has failed to eliminate the deficiencies contained in the application within the term granted on the basis of subsection (2) of this section.
(4) If an applicant fails to submit an application within the prescribed term, the application shall not be reviewed. Review of an application may be denied if the application does not comply with essential formalities.

§ 16.  Evaluation and satisfaction of application

(1) Conforming applications shall be evaluated by persons who are competent, impartial towards the applicant and comply with the requirements of a measure pursuant to the procedure provided by the eligibility criteria of the measure and based on the evaluation criteria. Based on the evaluation results, the 2nd level intermediate body shall make a decision to satisfy the application in full or in part (hereinafter decision to satisfy application) or a decision to deny the application.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
(2) A decision to deny an application shall be made without evaluating the application if:
1) the applicant does not conform to at least one of the requirements set for applicants by the eligibility criteria;
2) the application does not comply with the requirements provided for in subsection 15 (1) of this Act.
(21) A decision to deny an application shall also be made without evaluating the application if a local government or its financial management unit:
1) has failed to comply with the permitted value of operating result specified in subsection 33 (2) of the Local Government Financial Management Act in the financial year preceding the year of processing the application or according to the last known data exceeds the upper limit on net debt provided for in subsections 34 (3)-(5) of the Local Government Financial Management Act;
2) exceeds the upper limit on net debt provided for in subsections 34 (3)-(5) of the Local Government Financial Management Act with the obligation assumed for payment of the self-financing of the project;
3) has no financial capability to ensure self-financing of the project. To identify the financial capability of ensuring the self-financing of a project, proceeds from the sale of fixed assets and financial assets, targeted financing received for acquiring fixed assets, financial income and the remaining liquid assets as at the beginning of the financial year and shall be added between the revenue of core business and expenses of core business and the financial expenses, acquisition costs of fixed assets and financial assets, targeted financing given for acquisition of fixed assets and the sums to be paid for payment of debt commitments. The sum received shall cover the self-financing planned for the financial year or the commitments undertaken to cover thereof in the current financial year in the amount of the sum repayable. In case of a multi-year project the financial capability of ensuring the self-financing of the project shall be assessed with regard to each financial year of the period of implementation of the project, thereby if possible the budget established for the financial year shall be taken as a basis for assessment, in the absence thereof the financial plan made up on the basis of the prognosis.
[RT I, 03.02.2011, 1 - entry into force 01.01.2012]
(22) The bases for refusal to satisfy the application specified in clauses (21) 1)-3) of this section shall be applied if a local government or a dependant unit within the meaning of clause 2 9) of the Local Government Financial Management Act contributes to self-financing in the project and assistance is applied for the project by which investments are made into infrastructure or productive activities, except into project carried out to comply with requirements of The Council Directive 91/271/EEC concerning urban waste-water treatment ( OJ L, 30.5.1991, pp.40-52) and Council Directive 98/83/EC on the quality of water intended for human (OJ L 330, 5.12.1998, pp.32-54).
[RT I, 03.02.2011, 1 - entry into force 01.01.2012]
(23) If the applicant is a person specified in subsection (22) of this section or if such person contributes financially into self-financing of the project of another applicant and the facts specified in clauses (21) 2) and 3) of this section exist upon covering the self-financing, the 2nd level intermediate body shall ask for the opinion of the Ministry of Finance with regard to the facts specified in such points before making a decision with regard to the application. The Ministry of Finance may ask the local government for financial data, also, where necessary, concerning further financial years.
[RT I, 03.02.2011, 1 - entry into force 01.01.2012]
(24) If the facts specified in subsection (21) of this section exist upon processing the application but it is impossible to implement the project within the eligibility period provided for by the requirements of the measure, the decision to satisfy the application shall be made with a secondary condition. The decision shall set out the term for eliminating the facts provided for in subsection (21) of this section.
[RT I, 03.02.2011, 1 - entry into force 01.01.2012]
(3) If an application does not conform to the minimum requirements of the evaluation criteria provided by the eligibility criteria of the measure, a decision to deny the application shall be made.
(4) In conformity to the provisions of the eligibility criteria of the measure, the following shall be satisfied:
1) an application which ranks the first in the list of applications prepared based on the evaluation criteria;
2) the best applications selected based on the evaluation criteria which, where needed, may be arranged according to ranking;
3) all applications which conform to the minimum requirements of the evaluation criteria, or
4) all applications whose evaluation results exceed the threshold level provided by the eligibility criteria.
(5) If upon arranging applications according to ranking based on the evaluation criteria, several applications have equal indicators, the application with the highest rate of self-financing or the application which was submitted earlier shall be preferred pursuant to the provisions of the eligibility criteria, or lots shall be drawn between the applications with equal indicators. The eligibility criteria may specify other basis of preference, which may help the achievement of the objectives of a project or measure.
(6) If the value of the applications which exceed the threshold level provided by the eligibility criteria is greater than the residual funds of the budget, the application which was submitted earlier shall be satisfied.

§ 17.  Partial satisfaction of applications and satisfaction of applications using funds of following years

(1) The eligibility criteria may prescribe that if full satisfaction of an application is not possible or reasonable, the amount of assistance applied for may be reduced and the activities of the project changed with the consent of the applicant, provided that the objectives of the project included in the application are reached. If the applicant does not agree to the reduction of the assistance or changing of the activities, a decision to deny the application shall be made.
(2) If the decision to satisfy an application is made out of the funds of the budget of the measure for the following years, the decision to satisfy the application shall prescribe, as a secondary condition, the possibility to amend or revoke the decision if no funds for paying the assistance exist in the budget of the year of payment of the assistance.

§ 18.  Amendment and revocation of decision to satisfy application

(1) A decision to satisfy an application may be amended or revoked at the initiative of the person or agency that made the decision to satisfy the application or based on an application to such effect by the recipient.
(2) The recipient is permitted to amend the budget or activities of a project approved by the decision to satisfy the application without submitting an application for amendment of the decision to satisfy the application only under the terms and conditions and pursuant to the procedure provided by the eligibility criteria, provided that the 2nd level intermediate body is given prior notice thereof.
(3) The decision to satisfy an application for assistance may be amended if at least one of the following circumstances exists:
1) the content or results of the project would significantly change as a result of changing the activities of the project;
2) the date on which the activities of the project are commenced or terminated, or the eligibility period of the project needs to be changed;
3) the budget of eligible expenses of the project needs to be amended;
4) the terms for payment of the assistance need to be amended;
5) another circumstance specified by the eligibility criteria of the measure or an application by the recipient.
(4) In justified cases, the amount of assistance may be increased on a single occasion during the eligibility period of the project by amending the decision to satisfy the application pursuant to the procedure provided by the eligibility criteria of the measure, if:
1) the budget of eligible expenses of the project increases due to the increase in the cost of the public procurement with an open procedure, or
[RT I 2009, 34, 227 - entry into force 01.07.2009]
2) the eligibility period of the project is longer than sixty months.
(41) The amount of assistance for a technical assistance project may be changed under the conditions provided for in the annual State Budget Act.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
(5) Upon increasing the amount of assistance specified in subsection (4) of this section, all the following conditions must be met:
1) the residual funds of the budget of the measure allow the increase of the amount of assistance;
2) the amount of assistance is increased by a maximum of 30 per cent compared to the initial amount of assistance;
3) the rate of the assistance does not increase upon increase of the amount of assistance.
(6) The decision to satisfy an application for assistance may be revoked if at least one of the following circumstances exists:
1) circumstances become evident which preclude approval of the application;
2) the recipient has not commenced the use of assistance within the term set by the decision to satisfy the application for assistance;
3) the recipient does not comply with the provisions of the decision to satisfy the application for assistance or legislation, or does not use the assistance pursuant to the prescribed terms;
4) the activities of the project cannot be ended by 31 December 2015;
[RT I 2009, 34, 227 - entry into force 01.07.2009]
5) the application of the recipient for amendment of the decision to satisfy the application for assistance is denied and the recipient is unable to continue to use the assistance under the prescribed terms;
6) the recipient submits an application concerning waiver of assistance.

§ 19.  Grant of assistance based on investment plan

(1) A 1st level intermediate body may prepare an investment plan concerning investment projects of national or regional importance, including major projects within the meaning of Council Regulation (EC) No 1083/2006, which consists of a list or preferential list of projects and which sets out, as a minimum, the estimated cost of the projects, the maximum rate of assistance to be granted to the projects and the presumable due dates for the commencement and termination of implementation of the projects. The investment plan shall be prepared based on the eligibility criteria of the measure. The activity or any other act, in the case of which the implementation of the projects is deemed to be commenced, shall be provided for in the eligibility criteria of the measure.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
(2) The Government of the Republic shall approve the investment plan.
(3) The 1st level intermediate body shall organise the submission of major projects to the Commission.
(4) For the grant of assistance based on the investment plan, the eligibility criteria of the measure shall provide for:
1) the objective for granting the assistance and the activities supported;
2) expenses eligible and not eligible for assistance;
3) the maximum rate of assistance and minimum rate of self-financing;
4) the procedure for preparation and amendment of the investment plan including, upon selection of projects to be approved by the investment plan, the conditions and procedure for selection thereof;
5) the procedure for submission of major projects to the Commission;
6) the terms and procedure for implementation and amendment of projects approved by the investment plan;
7) the obligations of the recipient;
71) the procurements requirements if a recipients or partner need not comply with the Public Procurement Act;
[RT I 2009, 34, 227 - entry into force 01.07.2009]
8) the terms and procedure for submission of reports related to the use of assistance and where necessary, the formats for reports;
9) the procedure for payment of assistance.
(5) In justified cases assistance granted to a project may be increased under the conditions and pursuant to the procedure provided by the eligibility criteria of the measure upon amendment of a project approved by the investment plan.

§ 20.  Grant of assistance based on programme

(1) In order to reach the objectives set forth in the operational programme, the 1st level intermediary body may prepare a programme concerning the prescribed activities which shall consist, as a minimum, of a description of the objectives and activities of the programme and the budget of the programme.
(2) At the proposal of the 1st level intermediate body, the Government of the Republic shall approve a list of measures to be carried out based on the programme in part of in full including, for the measures to be carried out based on the programme in part, the amount of the assistance granted to the programme from the measures.
(3) A programme shall be implemented by the 1st level intermediate body or a person or agency authorised thereby. The 1st level intermediate body shall enter into an administrative contract with a legal person for performance of the functions of a person to implement the programme.
(4) The provisions of this Act concerning a project apply to programmes, except the provisions of §§ 14, 15, 17 and 18 of this Act.
(5) The provisions of this Act concerning a recipient apply to a person that implements a programme, except for the provisions of § 18 of this Act.
(6) For granting assistance based on the programme, the eligibility criteria of the measure or the programme shall provide for:
1) the target group for grant of assistance if such group needs to be determined;
2) expenses eligible and not eligible for assistance;
3) the procedure for preparation of the programme as necessary;
4) in the case a person to implement the programme is selected, the conditions and procedure for the selection thereof;
5) the obligations of the person to implement the programme;
51) in the case of involvement of a partner, the name of the partner, the reasons for involvement of the partner and his or her contribution to the programme;
[RT I 2009, 34, 227 - entry into force 01.07.2009]
52) the requirements for the performance of procurements, if a person implementing the programme or partner need not comply with the Public Procurement Act
[RT I 2009, 34, 227 - entry into force 01.07.2009]
6) the procedure for payment of assistance;
7) the conditions and procedure for amendment of the programme;
8) the terms and procedure for submission of reports related to the use of assistance and where necessary, the formats of reports.
(7) It shall be possible to finish the project activities no later than by 31 December 2015.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
(8) In justified cases, the assistance granted to the person implementing the programme may be increased under the conditions and pursuant to the procedure provided by the eligibility criteria or programme of the measure.

Chapter 4 USE OF ASSISTANCE 

§ 21.  General principles for use of assistance and eligibility for assistance

(1) The recipient shall use the assistance for its intended purposes. All the expenses covered from the assistance must be directly related to the project and eligible for assistance.
(2) The Government of the Republic shall establish the conditions and procedure for determining the eligibility or non-eligibility of expenses, including the procedure for the deduction of revenues received from a project.
[RT I 2009, 34, 227 - entry into force 01.07.2009]

§ 22.  Obligations of recipient

A recipient is required to:
1) ensure that the prescribed level of self-financing is provided;
2) use the assistance for its intended purposes;
3) ensure that the recipient or partner has, within the period of eligibility of the project, the necessary qualifications or legal abilities necessary for carrying out the project;
[RT I 2009, 34, 227 - entry into force 01.07.2009]
4) ensure that the documents which are the basis for payment conform to the requirements and the expenses are eligible;
5) submit the information and reports required for receipt and use of the assistance in a timely manner;
51) submit to the 2nd level intermediate body the data on participants in ESF operations specified in Annex XIII to Commission Regulation (EC) No 1828/2006 setting out rules for the implementation of Council Regulation (EC) No 1083/2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and of Regulation (EC) No 1080/2006 of the European Parliament and of the Council on the European Regional Development Fund (OJ L 371, 27.12.2006, pp. 1-59);
[RT I 2008, 24, 157 - entry into force 14.06.2008]
6) immediately inform the 2nd level intermediate body or the joint technical secretariat of European territorial cooperation or ENPI of any change in the data submitted in the application or related to the project;
[RT I 2008, 24, 157 - entry into force 14.06.2008]
7) obtain consent prior to amending the conditions for use of the assistance;
8) enable an audit, supervision or checks specified in subsections 7 (3) or 8 (2) of this Act to be carried out, and provide all possible assistance for such purpose, including allow an authorised person to stay in the premises and territory which are related to the use of the assistance of a recipient, a partner or any other person involved in the project in order to verify the correctness of the submitted data;
[RT I 2009, 34, 227 - entry into force 01.07.2009]
9) grant an entitled person the use of the data and documents requested thereby for the period specified by the entitled person;
10) clearly separate in its accounting the revenue received from the use of the assistance from other revenue and the expenses related to the use of the assistance from other expenses and the corresponding expense receipts and payment documents from other expense receipts and payment documents, and ensure that the partners do the same, except in the cases specified in Article 11 (3) (b) of Regulation (EC) No 1081/2006 of the European Parliament and of the Council on the European Social Fund and repealing Regulation (EC) No 1784/1999 (OJ L 210, 31.07.2006, pp. 12-18) and in. 7 (4) of Regulation (EC) No 1080/2006 of the European Parliament and of the Council;
[RT I 2009, 34, 227 - entry into force 01.07.2009]
11) comply with the requirements provided by the Public Procurement Act upon performance of procurements related to the project and ensure that the partner do the same if only the recipient is the contracting authority within the meaning of the Public Procurement Act. If the recipient is not a contracting authority within the meaning of the Public Procurement Act, but a partner is, the recipient shall ensure that the partner complies with the requirements provided by the Public Procurement Act. If the provisions of the Public Procurement Act do not apply to the recipient and the partner, the recipient shall comply with the requirements established in the eligibility criteria of the measure, the operational programme of European territorial cooperation or the joint operational programme of ENPI and ensure that the partners do the same.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
111) apply the procurement procedure provided for in Chapter 5 of the Public Procurement Act upon performance of procurements if the recipient is a contracting authority in the sectors specified in §§ 83-89 of the Public Procurement Act and the estimated value of the procurement is less than the international threshold and exceeds the threshold of public procurements;
[RT I 2009, 34, 227 - entry into force 01.07.2009]
12) guarantee the preservation of the assets necessary for achieving the goal of the project and use thereof for the intended purposes for at least within five years upon investment into infrastructure or productive activities and in the case of small and medium-sized enterprises for at least within three years from the termination of the eligibility period of the project in compliance with the provisions of Article 57 of Council Regulation (EC) No 1083/2006 within at least the period of five years after the end of the eligibility period of the project or, in the case of ENPI, in compliance with the provisions of the joint operational programme.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011 - applied retrospectively from 1 January 2007]
13) indicate that the project is carried out with the help of assistance, using for that purpose the prescribed insignia and activities intended for dissemination of information;
14) perform other functions imposed thereon by this Act or legislation issued on the basis thereof.

§ 23.  Payment of assistance and reports on use of assistance

(1) Assistance is paid only for compensation of eligible expenses.
(2) The 2nd level intermediate body shall verify the conformity of the documents that are the basis for payment of the assistance, the eligibility of the expenses and shall pay the assistance or refuse to pay the assistance.
(21) The 2nd level intermediate body may suspend the payment of assistance if there is a reasonable doubt of the capability of the recipient to implement the project or reach the goals of the project, including due to large tax arrears of the recipient. The 2nd level intermediate body may request a certificate from the tax authority to identify the amount of tax arrears.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
(3) The paying authority may conduct additional checks of the payments of assistance made by the 2nd level intermediate body. The 2nd level intermediate body shall be promptly notified of any deficiencies that become evident in the course of the checks. The term for payment of the assistance may be extended by the time needed to conduct additional checks or to eliminate the deficiencies.
(4) The conditions and procedure for payment of assistance shall be established by the minister responsible for the area.
(41) Assistance shall be paid on the basis of the expense receipts paid by the recipient or a partner.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
(42) Assistance may be paid before the payment of expense receipts on the basis of a leasing contract related to the implementation of the project.
[RT I 2008, 24, 157 - entry into force 01.01.2009]
(43) Assistance may be paid before the payment of expense receipts, on the condition that self-financing has been provided, in the following cases:
1) upon grant of assistance from the Cohesion Fund;
2) upon grant of assistance for the development of the regional transport infrastructure;
3) in the cases not specified in clauses 1) and 2) of this section if so provided for in the eligibility criteria of the measure or the programme;
4) on the basis of a factoring contract related to the implementation of the project.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
(44) Assistance may be paid before an obligation has arisen on the conditions provided for in Article 78 (2) of Council Regulation (EC) No 1083/2006 if so provided for in the eligibility criteria of the measure and the decision to satisfy the application or in the programme. The use of the paid assistance shall be proved within the term provided for in the eligibility criteria of the measure and the decision to satisfy the application or in the programme, but not later than within three calendar years as of the payment of assistance. The use of self-financing corresponding to the amount of assistance shall be proved within one calendar year as of the payment of assistance.
[RT I 2008, 24, 157 - entry into force 14.06.2008]
(45) In justified cases, assistance may be paid before an obligation has arisen to the extent of the limit provided for in the annual state budget if the recipient is:
1) a state agency;
2) a non-profit association, a foundation or a state company within the meaning of clause 3 1) of the Participation in Legal Persons in Private Law by the State Act if so provided for in the eligibility criteria of the measure or in the programme and the existence of bank guarantee has been certified in order to guarantee advance payment;
3) a local government body; a legal person in public law or a state foundation within the meaning of clause 3 7) of the Participation in Legal Persons in Private Law by the State Act, if so provided in the eligibility criteria of the measure or in the programme.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
(5) If the paying authority receives documented evidence from the managing authority, the 1st level intermediate body or 2nd level intermediate bodies, or information arising from supervision results, audit reports or other documents that the managing and control systems of the managing authority, 1st level intermediate body or 2nd level intermediate body do not conform to the requirements provided by Article 58 of Council Regulation (EC) No 1083/2006 or endanger the protection of the financial interests of the European Communities within the meaning of Council Regulation (EC) No 2988/95 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, pp. 1-4), the payment authority may suspend the payments of assistance and immediately notify the managing authority, 1st level intermediate body or 2nd level intermediate body thereof.
(6) Payments of assistance shall be immediately continued if, based on the opinion of the paying authority or an auditor, the managing and control systems are conforming to the requirements and do not damage the financial interests of the European Union.
(7) The minister responsible for the area shall establish the terms and procedure for submission of reports on the use and payment of assistance and the formats for reports.

§ 24.  Monitoring and evaluation of grant and use of assistance

(1) The 1st level intermediate body in cooperation with the 2nd level intermediate body and the recipient shall monitor the grant and use of assistance within the meaning of Article 66 of Council Regulation (EC) No 1083/2006 (hereinafter monitoring).
(2) The 1st level intermediate bodies and 2nd level intermediate bodies shall organise the evaluation of the grant and use of assistance within the meaning of Article 47 of Council Regulation (EC) No 1083/2006 (hereinafter evaluation). Evaluations to support the monitoring over operational programmes shall be carried out by the managing authority.
(3) The procedure for monitoring and evaluation, including the target levels of the use of assistance, with the purpose to prevent automatic decommitment of budgetary commitments of the implementation plan provided for in Article 93 of Council Regulation (EC) No 1083/2006 and for formation of the monitoring committee specified in Article 63 of Council Regulation (EC) No 1083/2006 shall be established by the Government of the Republic on the proposal of the minister responsible for the area.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
(4) The head of the 1st level intermediate body shall establish the monitoring rules and formats for monitoring reports as necessary.

§ 25.  Notification of grant and use of assistance, and processing and publication of data

(1) The managing authority shall coordinate the notification of the grant and use of assistance, and the disclosure/ publication of data.
(2) The Government of the Republic shall establish the conditions and procedure for the notification of the grant and use of assistance, the public disclosure of such information, the designation of the objects financed from the assistance and the making of reference to the participation of the European Union.
(3) The agencies specified in §§ 7-11 of this Act may process and exchange information concerning the applicants and recipients, and other information obtained in the course of processing or documents in order to perform the tasks specified in this Act or legislation established on the basis thereof.
(4) Information concerning an applicant who is a state agency or local government body and the applications thereof may be disclosed publicly before making the decision to satisfy or deny an application, or approving an investment plan or a programme. Upon giving support for research and development activities to research and development institutions the information presented in the application may be disclosed to the parties in the procedure provided for in the eligibility criteria of the measure if so provided in the eligibility criteria of a measure, except information with regard to the business plan or technological solutions of the project and other information which is deemed to be business secret. Only statistical reviews concerning other applicants and the applications thereof may be disclosed to the public.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
(41) The name of the applicant for assistance, the name of the project and the amount of the applied assistance may be disclosed to the public before approval of a major project within the meaning of Article 39 of Council Regulation (EC) No 1083/2006 by the European Commission. Other information may be disclosed to the public with regard to applicants who are state agencies or local government bodies and the major projects thereof.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
(5) The name of the recipient or the person implementing the programme, the name of the project or programme to receive the assistance and the amount of assistance shall be made public after the decision to satisfy an application has been made or a programme has been approved. The information set out in an investment plan pursuant to subsection 19 (1) of this Act shall be made public after the investment plan has been approved.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
(6) Information concerning a recipient or a person implementing the programme and concerning the project or programme thereof not specified in subsection (5) of this section may be made public, except for information relating to the business plan and technological solutions of the project and other information which is deemed to be a business secret or classified as internal within the meaning of the Public Information Act. The data concerning the sources of self-financing of a project shall not be public, except in the part of the self-financing received from state budget or local government funds. The names of the persons involved in the evaluation of a project and the evaluation concerning the applicant for assistance and the application or project thereof may be made public in a manner which ensures that the name and the evaluation cannot be associated with each other.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
(7) The data concerning an application which is not satisfied and an applicant that has submitted such application shall not be made public. The data concerning an applicant that is a state agency or local government body and the application thereof which are not satisfied may be made public.
[RT I 2008, 24, 157 - entry into force 14.06.2008]
(71) The data specified in subsections (6) and (7) of this section the disclosure of which is restricted, shall not be made public until expiry of the period for preservation of documents specified in § 5 of this Act.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
(8) An applicant and a recipient have the right to examine the documents prepared concerning them, except for the documents classified as internal.

Chapter 5 RECLAMATION AND REFUND OF ASSISTANCE 

§ 26.  Reclamation of assistance

(1) If it becomes evident that assistance has been used for compensation of non-eligible expenses, the 2nd level intermediate body or, in the case of European territorial cooperation, the paying authority shall make a decision to reclaim the assistance from the recipient in part or in full (hereinafter reclamation decision).
[RT I 2008, 24, 157 - entry into force 14.06.2008]
(2) A reclamation decision may be made if:
1) circumstances become evident which preclude approval of the application;
2) the assistance has not been used under the prescribed conditions;
3) liquidation or bankruptcy proceedings have been initiated against the recipient;
4) it becomes evident that the objectives of the project cannot be achieved or the terms for the activities of the project have not been adhered to;
5) the decision to satisfy the application has been revoked pursuant to subsection 18 (6) of this Act;
6) a precept provided for in clause 31 (2) 5) of this Act has not been complied with within the specified term;
7) the recipient has not performed the obligations imposed thereon by this Act or legislation issued on the basis thereof;
8) the recipient has received revenue which shall be deducted from the project.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
(21) If circumstances on the basis of which a reclamation decision specified in subsection (1) or (2) of this section is made, the damage caused by which cannot be ascertained or ascertaining of the damage is unreasonably time-consuming or resource-intensive, assistance may be reclaimed to the extent of the percentage provided for in the legislation established on the basis of subsection (6) of this section.
[RT I 2008, 24, 157 - entry into force 14.06.2008]
(22) The Government of the Republic may provide for the minimum amount of the assistance to be reclaimed per one project in the legislation established on the basis of subsection (6) of this section.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
(3) In the case specified in clause (2) 3) of this section, the assistance shall be reclaimed based on the provisions regulating liquidation or bankruptcy proceedings.
(31) If the recipient specified in clause 23 (45) 3) of this Act does not use the assistance received before an obligation has arisen for its intended purpose and does not repay the amount reclaimed on time, the Ministry of Finance has the right to:
1) suspend payment of funds transferred to the recipient as appropriations from the state budget or the equalisation fund until repayment of the amount of reclaimed assistance;
2) deduct the amount of reclaimed assistance which has not been refunded within the specified term from the funds transferred to the recipient as appropriations from the state budget or the equalisation fund by which the reclamation decision shall be deemed to be complied with by the recipient.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
(32) The Ministry of Finance shall inform the recipient immediately of the suspension of the transfer of appropriations from the state budget or the equalisation fund or of the deductions from the abovementioned funds.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
(4) Upon a failure to comply with a reclamation decision, the 2nd level intermediate body or, in the case of European territorial cooperation, the paying authority or, in the case provided for in subsection (8) of this section, the Ministry of Finance shall subject the decision to compulsory execution pursuant to the procedure provided for in the Code of Enforcement Procedure.
[RT I, 30.06.2015, 4 - entry into force 01.09.2015]
(5) A reclamation decision shall be made not later than on 31 December 2025. In the case specified in Article 88 of Council Regulation (EC) No 1083/2006, the reclamation decision may be made until the time-limit for preservation of documents determined by the Government of the Republic.
(6) The Government of the Republic shall establish the conditions and procedure for reclamation and repayment of the assistance.
(7) If a person or agency specified by the operational programme of European territorial cooperation files a reclamation demand with the Estonian state, the assistance shall be reclaimed from the Estonian partner pursuant to the provisions of the legislation established on the basis of subsection (6) of this section.
[RT I 2008, 24, 157 - entry into force 14.06.2008]
(8) If the Joint Managing Authority specified in Article 14 (1) of Commission Regulation (EC) No 951/2007 (hereinafter Joint Managing Authority of ENPI) files a reclamation demand specified in Article 27 (2) of Commission Regulation (EC) No 951/2007with the Estonian state, the Ministry of Finance shall reclaim the assistance pursuant to the provisions of the legislation established on the basis of subsection (6) of this section.
[RT I, 30.06.2015, 4 - entry into force 01.09.2015]
(9) A 2nd level intermediate body may refuse to make a decision to reclaim the assistance if the amount of the reclaimed assistance remains below the minimum amount provided for in the legislation established on the basis of subsection (6) of this section.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]

§ 27.  Repayment of assistance

(1) The recipient shall repay the assistance in the amount and by the date indicated in the decision to reclaim assistance. The term for repayment of the assistance shall be 90 calendar days as of the date the reclamation decision enters into force.
[RT I 2008, 24, 157 - entry into force 14.06.2008]
(2) In justified cases, the 2nd level intermediate body or, in the case of European territorial cooperation, the paying authority or, in the case provided for in subsection 26 (8) the Ministry of Finance may postpone the repayment of assistance at the request of the recipient and demand a security, as necessary.
[RT I, 30.06.2015, 4 - entry into force 01.09.2015]
(3) If the recipient is required to repay a part of the assistance, the next amount of assistance payable within the framework of the project may be reduced by the amount which shall be repaid.
(4) The 2nd level intermediate body or, in the case of European territorial cooperation, the paying authority may suspend the payment of assistance to the recipient in the part of the project connected to the repayment or in the part of all the projects of the recipient until the reclaimed amount has been paid back in full.
[RT I 2008, 24, 157 - entry into force 14.06.2008]
(5) If the secondary condition included in the decision to satisfy the application is not fulfilled, the reclamation and repayment of the assistance are carried out in the procedure provided for in the legislation established on the basis of subsection 26 (6) of this Act.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
(6) If the recipient has failed to refund the assistance received and repayable on the basis of the decision including a secondary condition on due date, the refund of the assistance shall be made by a person or body which has made the decision to satisfy the application. Refund of the assistance by a person or body that made the decision does not have an effect on the reclamation and repayment specified in subsection (5) of this section.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]

§ 28.  Interest and fines for delay

(1) Interest shall be demanded from the remainder of the amount of assistance to be refunded based on subsections 26 (1) and (2) of this Act. The interest rate on the remainder of the amount of assistance subject to refund shall be six months Euribor interest rate plus an annual rate of 5 per cent. The basis for interest calculation shall be a period of 360 days.
[RT I 2010, 22, 108 - entry into force 01.01.2011]
(11) Interest shall not be demanded if the revenue received has been reclaimed and the recipient has performed the obligation to notify of the revenue from a project established thereto on the basis of the procedure provided for in subsection 21 (2) of this Act.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
(2) Interest is calculated as of the date the reclamation decision enters into force, based on the interest rate quoted on the last working day of the month prior to the calendar month of making the decision. If a criminal offence has been committed upon application for or use of the assistance, interest shall be calculated as of the date of payment of the assistance based on the interest rate quoted on such date.
[RT I 2008, 24, 157 - entry into force 14.06.2008]
(3) Interest shall be calculated until the date of repayment of the assistance but not for longer than until the due date for repayment of the assistance or, in the case of repayment by instalments, until the date of final repayment.
(4) Calculation of interest shall be suspended upon declaration of bankruptcy of the recipient.
(5) If the assistance is not returned by the due date prescribed by the reclamation decision, the recipient shall pay a fine for delay on the remainder of the amount subject to repayment in the amount of 0.1 per cent for each day by which repayment is delayed in the same currency as the assistance was initially paid.
(6) A state agency is not required to pay interest or fines for delay. If the Commission demands payment of a fine for delay from the state, a state agency shall pay a fine for delay to the extent of the amount which the state paid to the Commission.
(7) The 2nd level intermediate body or, in the case of European territorial cooperation, the paying authority and, in the case provided for in subsection 26 (8), the Ministry of Finance may waive the claim for the remainder of the total sum of the reclaimed assistance, interest and fine for delay if such sum remains under 3 euros, and it is possible to compensate for the unpaid remainder of the amount of assistance from the total sum of the paid interest and fine for delay.
[RT I, 30.06.2015, 4 - entry into force 01.09.2015]
(8) The payments for repayment of assistance are considered to have been made in the following order: the first shall be the fine for delay, the second shall be the interests in the order of their creation beginning from the earliest and the last shall be the assistance subject to return or parts thereof beginning from the earliest debt.

Chapter 6 SUPERVISION AND NOTIFICATION OF VIOLATIONS 

§ 29.  Objective, extent and subjects of supervision

(1) The objective of supervision is to verify whether assistance has been granted and is used for the intended purposes and in compliance with legislation.
(2) The activity of the 2nd level intermediate body in performing the tasks imposed thereon by this Act, legislation established on the basis thereof or an administrative contract, and the compliance of the activity of the recipient with the provisions of the decision to satisfy the application and legislation is verified in the course of supervision.

§ 30.  Agencies exercising supervision

(1) The 1st level intermediate body exercises supervision over a 2nd level intermediate body.
(2) The 2nd level intermediate body or, in the case of European territorial cooperation, the managing authority and the controllers designated by the Member State pursuant to Article 16 of Regulation (EC) No 1080/2006 of the European Parliament and of the Council exercise supervision over the activity of a recipient. If a legal person in private law acts as the 2nd level intermediate body, supervision over the recipient is exercised by the 2nd level intermediate body or the 1st level intermediate body as agreed by the administrative contract.
[RT I 2008, 24, 157 - entry into force 14.06.2008]
(3) Supervision is exercised through a duly authorised official or employee (hereinafter supervisory official).

§ 31.  Competence of supervisory officials

(1) A supervisory official exercising supervision over the 2nd level intermediate body has the right to:
1) check the information, documents and other materials relating to the grant of assistance;
2) obtain written and oral explanations from the representatives of the 2nd level intermediate body;
3) stay, for the conduct of supervision, in the premises and territory of the 2nd level intermediate body and carry out on-the-spot visits of inspection;
4) inspect the activity of the 2nd level intermediate body upon exercise of supervision over the activity of the recipient;
5) issue a precept ordering termination of a violation relating to the grant of assistance, prevention of further violations and elimination of the consequences of the violation.
(2) A supervisory official exercising supervision over the recipient has the right to:
1) examine information, documents and other materials relating to the use of assistance;
2) obtain written and oral explanations from the recipient or a representative thereof;
3) stay, for the conduct of supervision, in the premises and territory of a recipient, partner and other persons participating in the project which have been erected using the assistance or are related to the use of the assistance, and carry out on-the-spot visits of inspection;
[RT I 2009, 34, 227 - entry into force 01.07.2009]
4) examine the object created using the assistance;
5) issue a precept ordering termination of a violation relating to the use of assistance, prevention of further violations and elimination of the consequences of the violation;
6) impose, in the case of failure to comply with a precept or inappropriate compliance therewith, a penalty payment pursuant to the procedure provided for in the Substitutive Enforcement and Penalty Payment Act.
(3) The maximum amount of a penalty payment specified in clause (2) 6) of this section shall be 2000 euros at a time, and 6400 euros in total in order to oblige a person to perform one and the same obligation.
[RT I 2010, 22, 108 - entry into force 01.01.2011]
(4) If a supervisory official discovers a circumstance or violation specified in subsection 26 (1) or (2) of this Act in the course of supervision, he or she shall immediately give notice thereof to the person or agency that authorised the supervisory official and to the person or agency that made the decision to satisfy the application concerned.

§ 32.  Notification of Ministry of Finance

(1) The 2nd level intermediate body shall inform the Ministry of Finance and the 1st level intermediate body of violations, including ignoring of the rules specified in Article 2 point 7 of Council Regulation (EC) No 1083/2006, suspicion of an offence and other activities damaging the financial interests of the European Union and of reclamation of assistance.
[RT I, 30.06.2015, 45 - entry into force 01.09.2015]
(2) The procedure for forwarding information specified in subsection (1) of this section shall be established by the Government of the Republic.

§ 33.  Notification of European Anti-Fraud Office

(1) The Ministry of Finance shall notify the European Anti-Fraud Office of the circumstances specified in subsection 32 (1) of this Act pursuant to the provisions of Regulation (EC) No 1073/1999 of the European Parliament and of the Council concerning investigations conducted by the European Anti-Fraud Office (OLAF) (OJ L 136, 31.05.1999, pp. 1-7) and other legislation of the European Union.
(2) Where necessary, the information forwarded on the basis of subsection (1) of this section and subsection 32 (1) of this Act shall be classified as internal within the meaning of the Public Information Act. The Ministry of Finance has the right to disclose the information addressed thereby under the conditions and pursuant to the procedure provided by legislation.

Chapter 7 CHALLENGE PROCEEDINGS 

§ 34.  Challenge proceedings

(1) A challenge proceeding under the conditions and pursuant to the procedure provided by the Administrative Procedure Act is required to be completed before filing an action with an administrative court.
(11) A challenge shall not be filed against an order or act of the Government of the Republic.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
(2) If a challenge is filed against a decision or act of a 1st level intermediate body or 2nd level intermediate body that is under the supervisory control of the Government of the Republic, the challenge shall be adjudicated by the 1st level intermediate body or the 2nd level intermediate body that made the decision or performed the act.
(3) If a challenge is filed against a decision or act of a legal person in private law that is acting as the 2nd level intermediate body, the challenge shall be adjudicated by the 1st level intermediate body or the 2nd level intermediate body as authorised by the 1st level intermediate body.
(4) If a challenge proceeding is adjudicated by the 1st level intermediate body or 2nd level intermediate body that made the decision or performed the act, the challenge shall be adjudicated independently from the performance of the functions of the 1st level intermediate body or 2nd level intermediate body.
(5) A challenge shall be adjudicated within thirty calendar days as of the receipt of the challenge.

Chapter 8 DEVELOPMENT AND IMPLEMENTATION OF OPERATIONAL PROGRAMMES OF EUROPEAN TERRITORIAL COOPERATION AND JOINT OPERATIONAL PROGRAMME OF ENPI 
[RT I 2008, 24, 157 - entry into force 14.06.2008]

§ 35.  Competence of Ministry of Finance

[RT I, 30.06.2015, 4 – entry into force 01.09.2015]
(1) The Ministry of Finance shall perform the tasks related to the development and implementation of the operational programmes of European territorial cooperation and the joint operational programme of ENPI imposed on a Member State by the legislation of the European Union.
[RT I, 30.06.2015, 4 – entry into force 01.09.2015]
(2) In order to develop the operational programmes of European territorial cooperation and organise the implementation thereof, the Ministry of Finance shall hold negotiations with the Commission, the relevant agencies of the countries participating in the operational programmes and the managing and paying authorities of the operational programmes and enter into necessary agreements on behalf of the Estonian state.
[RT I, 30.06.2015, 4 – entry into force 01.09.2015]
(3) In order to develop the joint operational programme of ENPI and organise the implementation thereof, the Ministry of Finance shall hold negotiations with the relevant agencies of the countries participating in the joint operational programme and the Joint Managing Authority of ENPI and enter into necessary agreements on behalf of the Estonian state.
[RT I, 30.06.2015, 4 – entry into force 01.09.2015]

§ 36.  Designation of responsible persons and agencies

(1) The managing authority, paying authority, audit authority, joint technical secretariat and group of auditors specified in Articles 14 (1) and 14 (2) of Regulation (EC) 1080/2006 of the European Parliament and of the Council shall be designated pursuant to Article 12 point 8 (a) of Regulation (EC) 1080/2006 of the European Parliament and of the Council based on an agreement of the states participating in an operational programme.
(2) The Joint Managing Authority of ENPI, the Joint Monitoring Committee specified in Article 11 (1) of Commission Regulation (EC) No 951/2007 and the Joint Technical Secretariat specified in Article 16 (1) of Commission Regulation (EC) No 951/2007 shall be designated pursuant to subpoints d, e and f of Article 4 of Commission Regulation (EC) No 951/2007 by an agreement of the states participating in the joint operational programme of ENPI.
(3) If the managing authority, paying authority or audit authority of European territorial cooperation is located in Estonia, the government authority, state agency administered by a government authority or a legal person in private law to perform the relevant duties shall be designated by the Government of the Republic on the proposal of the minister responsible for the area. The minister responsible for the area shall enter into an administrative contract with a legal person in private law for performance of the functions of the managing authority, paying authority or audit authority.
(4) If the Joint Technical Secretariat is located in Estonia, the minister responsible for the area shall designate the person or authority responsible for the performance of the functions thereof. The minister responsible for the area shall enter into an administrative contract with a legal person in private law for performance of the functions of the Joint Technical Secretariat.
(5) The minister responsible for the area shall appoint the Estonian members of the group of auditors.
[RT I 2008, 24, 157 - entry into force 14.06.2008]

§ 37.  Application for, grant and use of assistance based on operational programmes of European territorial cooperation or joint operational programme of ENPI

(1) The competence and tasks of the agencies specified in Article 14 (1) and 14 (2) of Regulation (EC) 1080/2006 of the European Parliament and of the Council, the terms for the grant and use of assistance and the eligibility of expenses shall be provided, pursuant to Articles 12 and 13 of Regulation (EC) 1080/2006 of the European Parliament and of the Council, in the operational programme and its Annexes as agreed by the states participating in the operational programme.
(2) The competence and tasks of the agencies specified in Article 11 (1), Article 14 (1) and Article 16 (1) of Commission Regulation (EC) No 951/2007and the terms for the grant and use of assistance and the eligibility of expenses shall be provided pursuant to Article 4 of Commission Regulation (EC) No 951/2007 in the joint operational programme as agreed by the states participating in the joint operational programme.
(3) If the managing authority, paying authority or audit authority of European territorial cooperation is located in Estonia, the minister responsible for the area has the right to establish, upon agreement with the states participating in the operational programme, the managing authority, the paying authority or other relevant authorities, the description of the management and control systems of the operational programme pursuant to Article 21 (2) of Commission Regulation (EC) No 1828/2006.
[RT I 2008, 24, 157 - entry into force 14.06.2008]
(4) The terms and procedures for partial co-financing of self-financing of the projects of operational programmes of European territorial cooperation (hereinafter self-financing support) shall be established by a regulation of the minister responsible for the area.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
(5) The regulation on self-financing support shall provide:
1) the general principles of granting the support and areas to be supported;
2) the maximum rate of support;
3) requirement for an applicant;
4) requirements to an application;
5) the procedure of processing an application;
6) the terms and procedure for satisfaction of an application and refusal to satisfy an application;
7) the terms and procedure for amendment or revocation of decision to satisfy application;
8) the rights and obligations of the recipient;
9) the terms and procedure for reclamation and payments of assistance;
10) the procedure for the submission of reports.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
(6) The minister responsible for the area shall make the decisions to satisfy an application for self-financing support and refuse to satisfy and the decisions to reclaim the support.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]

§ 38.  Control, monitoring and evaluation of grant and use of assistance based on operational programmes of European territorial cooperation or joint operational programme of ENPI

(1) The minister responsible for the area shall establish the description of the control system and the procedure for the submission of reports specified in Article 16 (1) of Regulation (EC) No 1080/2006 of the European Parliament and of the Council and appoint the agency or person responsible for exercising the control. The minister responsible for the area shall enter into an administrative contract with a legal person for exercise of control.
(2) The procedure for monitoring and evaluation of the grant and use of assistance based on operational programmes of European territorial cooperation, including the procedure for setting up the monitoring committee specified in Article 63 of Regulation (EC) No 1083/2006 of the European Parliament and of the Council shall be provided, pursuant to Article 12 (8) (b) of Regulation (EC) 1080/2006 of the European Parliament and of the Council, by the operational programme. The Estonian members of the monitoring committee shall be appointed by the minister responsible for the area.
(3) The procedure for monitoring and evaluation of the grant and use of assistance based on the joint operational programme of ENPI, including the procedure for setting up the Joint Monitoring Committee specified in Article 11 (1) of Commission Regulation (EC) No 951/2007, shall be provided, pursuant to Article 4 of Commission Regulation (EC) No 951/2007, by the joint operational programme. Estonian members of the Joint Monitoring Committee shall be appointed by the minister responsible for the area.
[RT I 2008, 24, 157 - entry into force 14.06.2008]

Chapter 9 IMPLEMENTING PROVISIONS 

§ 39.  [Omitted from this text.]

§ 40.  [Omitted from this text.]

§ 41.  Use of earlier structural assistance register

The register specified in this Act shall considered to be the register established on the basis of subsection 9 (6) of the 2004-2006 Structural Assistance Act.

§ 411.  Implementation of Act

(1) If a decision to satisfy an application was made or an administrative contract was entered into before entry into force of the Structural Assistance Act for Period from 2004 to 2006 and the Structural Assistance Act for Period from 2007 to 2013 Amendment Act passed on 5 June 2008 and a decision to reclaim assistance was made after entry into force of the abovementioned Act, the wording of subsections 26 (21) and (4), 27 (1) and 28 (2) in force from entry into force of the abovementioned Act shall apply.
[RT I 2008, 24, 157 - entry into force 14.06.2008]
(2) Subsections 23 (41)-(43) and (45) of this Act enter into force on 1 January 2009.
[RT I 2008, 24, 157 - entry into force 14.06.2008]
(3) 1st level intermediate bodies shall bring the investment plans approved before 1 July 2009 into compliance with subsection 19 (1) of this Act not later than by 1 January 2010.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
(4) Clause 22 111) of this Act shall not be applied to a recipient that has notified of the request to enter into a procurement contract pursuant to subsection 16 (6) of the Public Procurement Act before 1 July 2009.
[RT I 2009, 34, 227 - entry into force 01.07.2009]
(5) Clause 2 10) of this Act shall be applied retrospectively from 1 July 2009.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
(6) Clause 22 12) of this Act shall be applied retrospectively from 1 January 2007.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]
(7) If an application is submitted by a person specified in subsection 16 (22) of this Act or the said person contributes financially to the self-financing of another applicant and the decision with regard to the application is made or the date for fulfilment of the secondary condition specified in subsection 16 (24) of this Act arrives in 2012, the decision is not made or the secondary condition determined on the basis of the conditions specified in clauses 16 (21) 1) and 2) of this Act but it is evaluated if the permitted value of the operating result specified in subsection 33 (2) of the Local Government Financial Management Act and the upper limit on net debt specified in subsections 34 (3)-(5) of the said Act is complied with.
[RT I, 03.02.2011, 1 - entry into force 13.02.2011]

§ 42.  Entry into force of Act

This Act enters into force on 1 Jan
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