Law Amending The Law On Municipal Compensation And General Grants To Municipalities (The Imposition Of Stricter Penalties For Municipalities By Exceeding Of Budgets And The Ability Of Individual Settlement Of The Conditional Block Grants)

Original Language Title: Lov om ændring af lov om kommunal udligning og generelle tilskud til kommuner(Indførelse af skærpede sanktioner for kommunerne ved overskridelse af budgetterne og mulighed for individuel afregning af det betingede bloktilskud)

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Law amending the law on municipal compensation and General grants to municipalities

(Introduction of stricter sanctions for municipalities by exceeding of budgets and the ability of individual settlement of the conditional block grants)

WE, MARGRETHE the SECOND, by the grace of God Queen of Denmark, do indeed:

The Danish Parliament has adopted and we know Our consent confirmed the following law:

§ 1

Of the law on municipal compensation and General grants to municipalities, see. lovbekendtgørelse nr. 561 of 19. June 2009, as amended by Act No. 710 of 25. June 2010, section 5 of law No. 1602 by 22. December 2010, § 3 of law No. 462 of 18. May 2011, § 10 of lov nr. 592 of 14. June 2011 and § 6 of the law No. 1364 of 28. December 2011, shall be amended as follows: 1. section 14, paragraph 3, 2nd paragraph, be repealed.

2. In article 14, paragraph 4, 3. paragraph shall be added after ' the total population ': ' without prejudice to article. However, paragraph 5 '.

3. In section 14 shall be inserted after paragraph 4 as new pieces: ' paragraph 5. The Minister of finance may decide that a proportion of the financial contribution referred to in paragraph 1 up to 3 billion. DKK alone paid to municipalities if local Government budgeted service expenses for the grant year after Finance Minister's assessment corresponds to the assumptions that has formed the basis for determining the amount of the subsidy. Economy-and the Interior Minister can decide on the distribution between the municipalities of the in 1. paragraph mentioned share of the grant. If the in 1. the share of the financial contribution referred to in item is not paid in full to the municipalities distributed after each municipality's share of the total population, see. (4) inform the Minister of the Interior Minister for the economy and Finance Committee on the size and distribution of the paid grants.

(6). The Minister of finance may decide that a proportion of the financial contribution referred to in paragraph 1 of up to 1 billion. the k-r is only paid to municipalities if local Government budgeted gross anlægsudgifter for the grant year after Finance Minister's assessment corresponds to the assumptions that has formed the basis for determining the amount of the grant. '

Paragraphs 5 and 6 become paragraph 7 and 8.

4. section 14 (a) is replaced by the following: ' § 14 a. Economic Affairs and Minister of the Interior shall establish the State grants to the municipalities for the grant year, referred to in article 6. section 14, if the municipalities ' accounts for the previous year under a grant year exhibit a higher level of service costs than the budgeted level corrected in accordance with paragraph 2. The reduction represents the difference between the accounting and the corrected budgeted service costs for the year concerned.

(2). Local Government budgeted service expenditure corrected for changing conditions from budget to account. Economy-and the Interior Minister can recognise a correction amount in the statement of the municipalities ' overall budgeted expenditure, provided that the budgeted service service costs are lower than one of economy and the Ministry of the Interior established framework.

(3). The reduction is calculated in accordance with paragraph 1 and shall be distributed between the municipalities of economy and the Ministry of the Interior. 40 per cent of the reduction shall be divided among all the municipalities in relation to each municipality's share of the total population. 60 per cent of the reduction will be distributed between the municipalities whose accounting led service expenses exceed the adjusted budget of the year before the grant year. Reduction after 3. item to be allocated to these municipalities in relation to each municipality's share of the total of the adjusted budgets for municipalities, where the accounting led service expenses exceed the adjusted budgets. Correction of individual municipalities budgets shall be made in the light of changing conditions from budget to account.

(4). The reduction is settled in the months of October, november and december for the grant year.

(5). Economy-and the Interior Minister may lay down detailed rules for the estimation and settlement of the reduction, including the commissioning of specific statements of assurance regarding the financial reporting and whether the necessary corrections on the basis of a comparison of budget and accounting. '

§ 2 paragraph 1. The law shall enter into force on the 1. July 2012.

(2). The law shall take effect from and including the grant year 2013.

Given at Christiansborg Palace, the 18. June 2012 Under Our Royal hand and Seal MARGRETHE r./Margrethe Vestager