Legislation

On December 16th, 2010 the president signed the Act on financial collateral arrangements whereby Czech law implements relevant EU directives on financial collateral arrangements dating back to 2002. This directive was assimilated into the Commercial Code and the 2009 amendment to this directive resulted in the current brand new legislation in the Czech Republic.

The amendment of the Public Procurement Act approved by the Senate and delivered to the President for his signature of the bill abolishes provisions implemented by the previous amendment to the act (Act No. 179/2010 Coll.) that came into effect on September 19th, 2010 and introduced under Section 53 (setting out fundamental qualification criteria for the three new qualification criteria of participants in public tenders.)

New Act No. 145/2010 Coll., on consumer credit and on alteration of other acts that came into effect on January 1st, 2011 introduces inter alia the changes to the Trade Licensing Act. At the same time these changes are being reflected into the governmental decree defining individual trade licences (the decree No. 288/2010 Coll.)

Act No. 330/2010 Coll. amends the Act on subsidizing the exploitation of renewable resources. The rationale of the amendment is to reduce subsidies to electricity producers, specifically solar power plants. With regard to the fact that the boom in the solar power industry has become burdensome both for the state as well as (consequently) for consumers (households and businesses) given the fact that the subsidies to be provided by existing regulation would result in an enormous increase of the final cost of electricity, the amendment seeks to discourage investors from further constructions of solar plants.

From July 7th, 2010, the issuing of security bonds so far filed by the Prague Securities Centre (Středisko cenných papírů) shall be newly managed by accounting at the Central Bond Depository ((Centrální depozitářcenných papírů, a.s. further referred to as “CD“), which at the same time will carry out all settlement procedures related to commerce within the regulated market.

Amendment Concerning Act No. 137/2006 Coll. on Public Procurement (hereinafter referred to as “ZVZ”), effective as of 15. 6. 2010. The reason for updating ZVZ is the obligation to transpose the Directive 2007/66/ES into the statute of the Czech Republic. The reason for updating ZVZ is the obligation to transpose the Directive 2007/66/ES into the statute of the Czech Republic.

Amendment to Government Regulation (142/1994) legislating higher interest for delays (government regulation 33/2010).
In effect since the 1st of July 2010, changes in higher interest adjustments for delays in accordance with the civil code have taken place.

The Act Concerning Consumer Lending (145/2010), effective as of 1.1. 2011. The following act lies within the working guidelines of the European Parliament and Counsel 2008/48/ES towards legal regulations in the Czech Republic and also newly-defined market conditions regarding consumer lending.

Amendment to the Commercial Code (Law 152/2010), effective as of 1.7. 2010. The proposed amendment is part of a more complex reaction to the rising number of victims of so-called catalogue fraud, wherein sly professionals exploit the inadvertent acceptance of charges through the unintended registration for catalogues, at a cost greatly in excess of the standard prices for services of a similar nature.

The main purpose of the proposed Constitutional amendment is the introduction of a direct election for the Head of State by the citizens of the Czech Republic, enabling a direct election for the President to be carried out for the first time in 2013, when the current administration comes to a close.