The Saeima has adopted and the President promulgated the following laws: For assisted regions in particular chapter I General provisions article 1 the law is applied in the following terms: 1) region-part of the territory of the country (Parish, County, city, County General and city as a whole, State, district and city district Ensemble as a whole), or of a certain characteristic problems;
2) special assisted region-a region in which long remained negative economic and social developments or one of these trends and that under this Act granted a special status;
3) regional development funds-the economic, legal and administrative measures as a whole used specifically aided the development of the region;
4) investment grants-partial refund of investment investment stimulus especially in assisted areas.
Article 2 this law shall determine the special assisted area status and the promotion of economic development of the region in General.
Article 3 of this law aims to create opportunities for special assisted region to accelerate economic development, to promote the socio-economic conditions equivalent to emerge throughout the country.
Chapter II special assisted area status and cancellation of article 4 of the order in which it should be granted and revocable in the special assisted area status, determined by the Cabinet of Ministers on the basis of the statistical data, the expert evaluation of the development of the region and other indicators.
Article 5 the maximum population that takes into account, on the populated areas to extend the special assisted area status, may not exceed 15 percent of the country's population.
Article 6 special assisted area status is revised every three years.
Chapter III regional development funds article 7 special assisted regions is promoted through regional development funds-investment in infrastructure, in particular lending policy, investment grants, the lump-sum payment companies (companies) and local authorities, economic training, free (Special) economic zone, administrative and other measures, which are based on special assisted regional development programmes, and which is used for the common financing.
Article 8 special assisted areas as defined by law is applicable to the tax relief.
Chapter IV Regional Development Council and its functions in article 9 (1) national regional development coordination in the Saeima approves the Regional Development Council consists of nine people, including one representative of the parliamentary economy, agrarian, environmental and regional policy, budget and finance (taxation) the Commission and the Government and local government representatives of the Commission, and six by the recommendation of the Cabinet.
(2) Regional Development Council by-laws approved by the Cabinet of Ministers.
Article 10 of the Regional Development Council has established a regional development strategy, provide advice to the Government of the State investment policies, assess special assisted regional development programmes and their funding, oversees the regional activities of the Fund and its funds.
Chapter v regional fund article 11 cabinet special assisted regional economic development creates a regional fund and approved its Statute.
Article 12 regional fund is credited to: 1) State budget resources allocated for this purpose;
2) foreign and international aid institutions loans and donations;
3) legal and natural persons (including foreign) mērķiemaks and donations;
4) other income.
Article 13 of the regional resources of the Fund can be financed: 1) investments in share capital of the company (the company);
2) interest payments on mērķkredīt, which are successfully used in accordance with the submitted business plan;
3) lump-sum payments (payments for economic education activities, the premium for the creation of new jobs, etc.) companies (companies);
4) investment grants;
5) partially-special assisted region local development funds and special assisted regional development programmes;
6) regional expenditure for the operation of the Fund.
Article 14 in certain cases by the Regional Development Council decision from the regional fund can: 1) provide loans or provide credit guarantee companies (companies);
2) together with the local Government to finance the development of infrastructure;
3) to finance local government organized business promotion measures (those measures also invited experts).
Article 15 regional fund can use those (companies) that are recorded and run only in particular located in assisted areas, as well as special assisted regional governments.
Chapter VI special assisted regional development Council and local development fund in article 16 in particular aided the coordination of regional development issues in the Cabinet in the order, you can create a special assisted area development Council and approve its Statute.
Article 17 the cabinet order can also create special assisted region local development funds.
Transitional provisions 1. With the entry into force of this Act shall terminate the constitutional order of article 81 of Cabinet of Ministers issued Regulation No. 11 "About special assisted regions" (Latvian Saeima and the Cabinet of Ministers rapporteur, 1997, no. 4).
2. the Cabinet of Ministers on 1 august this year submitted to Parliament proposals for the amendment of tax laws regarding tax advantages particularly in assisted areas.
The Parliament adopted the law of 22 May 1997.
The President g. Ulmanis in Riga 10 June 1997 in