Scope

1. This Law Applies to the Corporations of the Canton of Lucerne.

1. The corporations are public-law entities with municipal status.

2. The autonomy of the corporations is guaranteed in their area of responsibility. Its scope is determined by cantonal and federal legislation.

3. Within the framework of superior law, the corporations have sovereign regulatory and decision-making powers in their area of responsibility.

1. The corporation enacts legislative decrees within its area of responsibility in accordance with the overarching law.

2. The eligible voters enact legislative decrees in the form of regulations; the Corporation Council issues ordinances.

3. The corporation regulates the basic structure of its organization in the Corporation Regulation. The Corporation Regulation takes precedence over other corporation laws.

1. The corporations manage the corporate property in accordance with this law and their regulatory decrees.

2. They make appropriate contributions for public, charitable, and cultural purposes.

1. Corporations are authorized to freely regulate the management and usage of their assets within their corporate regulations, provided they comply with the legal framework.

2. The following principles must be observed

a. The corporation’s assets are the property of the corporation.

b. The capital substance must be preserved and must not be distributed to the members of the corporation as their property.

c. From the surplus income of the assets, reasonable contributions must be made for public, charitable, and cultural purposes before distributing any member benefits.

d. All members must be treated equally regarding their usage rights. Personnel corporations may restrict usage rights in the corporate regulations on objective grounds.

1. The citizenship of the personal corporation is acquired through descent, adoption, or naturalization.

2. It presupposes the citizenship of the municipality to which the personal corporation belongs territorially.

1. If a corporate citizen grants the municipal citizenship to their minor child, the child simultaneously acquires the corporate citizenship.

1. Local municipal citizens may be naturalized into the corporation existing within the municipality upon application.

2. The corporation's regulations may provide for the naturalization of non-local municipal citizens.

3. The corporation's eligible voters shall regulate the naturalization requirements in a legislative enactment.

4. Spouses and children of corporation citizens who subsequently acquire municipal citizenship shall be facilitated for naturalization by resolution of the corporation council upon application. They are not required to pay a naturalization fee.

1. A naturalization fee may be required from naturalized individuals, with the exception of those who have been naturalized by simplified procedures under § 8 paragraph 4.

2. The naturalization fee must be reasonably proportionate to the intangible and material benefits that result from acquiring corporate citizenship.

3. The naturalization fee for an individual must not exceed 5000 Swiss Francs. This amount is based on the level of the national consumer price index (with the base index as of December 2010 = 100 points) at the time this provision comes into effect. If this index increases by more than 5 points, a higher maximum amount may be assumed starting from January 1 of the following year.

1. The corporation shall maintain a register of the corporation's citizens.

2. The register of corporation citizens shall contain at least the names, first names, dates of birth, and addresses of all eligible corporation citizens.

3. The municipal communities shall provide the corporation with the necessary information for maintaining the register upon request.

1. The corporate citizenship is terminated with the loss of municipal citizenship or with the release due to renunciation.

1. The Corporation Council is responsible for granting corporate citizenship rights, setting the naturalization fee, and making decisions regarding release due to the renunciation of corporate citizenship.

2. Eligible voters may delegate the right to grant corporate citizenship rights - with the exception of simplified naturalization under § 8 paragraph 4 - to the Corporation Assembly, the Corporation Parliament, or a commission.

3. The corporation charges fees, which do not exceed the cost of processing naturalization applications and applications for release from citizenship.

4. Administrative appeals to the Executive Council are permissible against decisions on the granting of corporate citizenship rights, the setting of the naturalization fee, and release from citizenship. Decisions on appeals by the Executive Council can be contested with an administrative court appeal at the Cantonal Court.

1. A citizen or member of a real corporation is a person who possesses a corresponding real right.

1. The real corporation maintains a register of the properties, buildings, or building parts associated with a real right, the number of associated real rights (entitlements), and their owners.

2. The register must specify the voting rights entitled to individual corporation citizens.

1. In mixed corporations, the citizenship rights for the individuals entitled by personal rights are governed by Sections 6-12, and for those entitled by real rights by Sections 13 and 14.

1. The eligible voters are the supreme body of the corporation.

2. Unless otherwise regulated in their bylaws, corporations shall conduct elections and votes through the assembly procedure.

2bis. If, due to a disaster, an emergency, or a comparable situation, an assembly cannot be properly conducted because of an imminent threat of severe danger or disruption to public safety and order or public health, the corporate council may order a vote or an election to be conducted by the ballot procedure.

3. Voting rights and procedures are governed by the Voting Rights Act of October 25, 1988.

1. The eligible voters are entitled to at least the following rights

a. Election

1. of the Corporation Council,

2. of the Audit Commission and the appointment of a possible audit firm,

3. of the Election Office.

b. Legislation

1. Decision on the regulations,

2. Approval of normative contracts as well as the transfer of sovereign powers to third parties, insofar as the Corporation Council is not declared competent in a legal provision.

c. Financial Transactions

1. Decision on the budget and the procurement of funds necessary to cover financial needs,

2. Decision on supplementary, special, and additional credits,

3. Approval of the financial statements and the accounts of special and additional credits,

4. Approval of the following transactions, insofar as the value exceeds ten percent of the total annual expenses of the corporation or another size specified in the corporation's regulations (the expenses allocated in the budget for the current fiscal year serve as the basis for determining the jurisdictional limit)

4.1 Acquisition, sale, and encumbrance of real estate,

4.2 Provision of contingent liabilities,

4.3 Conclusion of concession contracts,

4.4 Establishment of or participation in private or public legal entities or simple partnerships.

5. Acknowledgment of the financial plan.

d. Changes in the Corporation's composition: Decision on changes in the Corporation's composition.

1. The eligible voters may delegate the powers according to § 17 in their Corporation Regulations to a Parliament. They elect the Parliament using proportional representation according to the provisions of the Voting Rights Act every four years, in the same year as the Corporation Council. They may stipulate in the Corporation Regulations that the Parliament is elected by majority vote. The newly elected Parliament assumes its office on September 1 following the election.

2. At least the following powers must be reserved for the eligible voters

a. Election of the Corporation Council,

b. Election of the Parliament,

c. Enactment, amendment, and repeal of the Corporation Regulations,

d. Decision on changes in the composition of the Corporation.

3. At least the following matters are subject to an optional referendum

a. Resolution of regulations and approvals pursuant to § 17 subparagraph b,

b. Resolutions on the budget and the necessary borrowing to meet financial needs,

c. Resolutions on supplementary, special, and additional credits, if their value exceeds ten percent of the Corporation's total annual expenditures or another size specified in the Corporation Regulations,

d. Approval of the following financial transactions, if the value exceeds ten percent of the Corporation's total annual expenditures or another size specified in the Corporation Regulations

1. Acquisition, sale, and encumbrance of real estate,

2. Provision of contingent liabilities,

3. Conclusion of concession agreements,

4. Establishment of or participation in private or public legal entities or simple partnerships.

4. The optional referendum is established if, according to the provisions of the Voting Rights Act, the signatures of at least one-tenth of the eligible corporation citizens are submitted to the Corporation Council within 60 days of the publication of the referendum proposal. The number of signatures may be set differently in the regulations.

5. The public vote is to be conducted within a year of the final decision by the Parliament for a mandatory referendum, and within a year of the expiration of the referendum period for an optional referendum.

1. The Corporation Council is the administrative and executive body of the corporation.

2. It leads the corporation and fulfills all duties that are either assigned to it by the legal system or not transferred to any other body of the corporation.

1. The Corporation Council consists of at least three members. The number of members is determined by the Corporation Regulations.

2. It is stipulated in the Corporation Regulations whether an additional election is necessary for a specific office within the Corporation Council. Otherwise, the Corporation Council assigns the offices to its members itself.

3. The meetings of the Corporation Council are not public.

1. The voters elect the Corporation Council in accordance with the provisions of the Voting Rights Act every four years, in the same year as the municipal council elections take place.

2. The election in the assembly procedure must be conducted by the end of April at the latest. It is ordered by the Department of Justice and Security and must be approved by the Government Council.

3. The newly elected Corporation Council assumes office on September 1 following the election.

1. The electorate elects an auditing commission consisting of at least three persons for a term of office of four years.

2. The auditing commission acts as a collegiate authority. It may assign committees or, based on a resolution of the electorate or the corporation council, third parties with specific auditing tasks.

3. In addition to the auditing commission, the electorate may appoint an external audit firm to undertake the tasks pursuant to § 23 para. 2.

1. The Finance Commission submits a report on the budget and financial plan to the Corporation Council and the eligible voters and provides them with a recommendation for decision-making.

2. The Finance Commission or the external audit firm appointed according to § 22 paragraph 3 examines the accounts and the financial statements related to special and additional credits for accuracy and completeness and submits an audit report to the Corporation Council and the eligible voters. It specifically examines

a. the proper use of credits,

b. the propriety and legality of the accounting,

c. the conformity of the financial statements, the books, and the associated records with the documentation,

d. the existence of assets and compliance with valuation principles.

3. In corporations where the principles of results-oriented management (ROM) are applied wholly or partially, the Finance Commission additionally submits an accountability report to the Corporation Council and the eligible voters for the ROM areas regarding the fulfillment of performance mandates according to the budget.

1. The audit authorities may inspect the corporation's records to fulfill their duties.

2. The corporation's bodies are obligated to provide information to the audit authorities to fulfill their duties.

1. The Corporation Secretary shall ensure that the resolutions and legal transactions of the corporation are recorded and documented in a manner comprehensible in accordance with the directives of the Corporation Council.

2. The Corporation Secretary may be assigned additional functions in the Corporation Regulations.

3. The Corporation may specify in the Corporation Regulations that the duties of the Corporation Secretary may be assumed by a member of the Corporation Council.

4. If the Corporation Secretary is not a member of the Corporation Council, he or she shall have an advisory vote at the meetings of the Corporation Council.

1. Each corporation is obligated to maintain an archive of the corporation's records deemed worthy of archiving.

2. The corporations may request that their documents be stored in the municipal archive for a reasonable fee.

3. The provisions of the Archives Act of June 16, 2003, apply to the security and use of archive materials, as well as the legal protection and penalties to be granted in this context.

4. The corporation's clerk is responsible for the proper maintenance of the archive.

1. Eligible for election to the Corporation Parliament, the Corporation Council, and the Audit Commission is anyone who is personally entitled to vote in the corporation.

2. In the real corporations and mixed corporations, the legal or authorized representatives of non-voting legal and natural persons are also eligible for election in accordance with § 7 paragraphs 3b-d of the Voting Rights Act.

1. Incompatible in one person is an office

a. in an auditing body with a position in the corporation council or an employment with the corporation,

b. in the corporation parliament with a position in the corporation council.

2. Members of the corporation council or an auditing body may not simultaneously be

a. Persons who are married to each other or live in a registered partnership,

b. Relatives in the direct line and in the collateral line up to and including the third degree,

c. Stepparents and stepchildren as well as stepsiblings who grew up in the same household,

d. Adoptive parents and adoptive children,

e. Persons who are related by marriage in the direct line, as long as the marriage or registered partnership exists.

1. A corporate body is quorate when the absolute majority of its members are present.

2. The members of the corporate body are obliged to cast a vote.

3. A valid resolution requires the absolute majority of those present. If a resolution cannot be reached due to a tie vote, the vote must be repeated. In case of another tie, the vote of the presiding person, or in their absence, that of their deputy, shall be decisive.

4. The corporation may regulate the resolution procedure differently in a legislative enactment.

1. The rules and reasons for recusal according to §§ 14 et seq. of the Administrative Procedure Act of July 3, 1972, apply to the members of the Corporation Council and the Corporation Administration.

2. In matters concerning specific natural or legal persons, these reasons for recusal also apply to

a. the Corporation Parliament,

b. the auditing bodies and commissions,

c. all persons who participate in any form in a matter and can influence the outcome of the procedure.

3. If a corporation body is unable to make a decision due to recusal or other reasons, the competent cantonal supervisory authority shall regulate the further proceedings. It may act in place of the body.

1. The corporation regulates the signing authority in a legislative decree.

2. Resolutions of the corporation council must be signed by at least one member of the corporation council as well as by the corporation secretary or the deputy of the corporation secretary.

1. Members of the Corporation Council, the Audit Commission, the Corporation Clerk, and, if provided for by the Corporation Regulations, the Parliament shall be sworn in by the competent cantonal supervisory authority.

2. Whoever refuses to take the oath or pledge relinquishes their office.

1. Ten percent of eligible voters, rounded down to the nearest ten but at least ten eligible voters, may request a vote from the Corporation Council on a corporate matter that falls within its jurisdiction. The number of signatures required can be set differently in the Corporate Regulations.

2. The deadline for submitting the signatures is 60 days from the publication of the request.

3. Furthermore, the provisions of the Municipal Law of May 4, 2004, and the Voting Rights Act apply, and additionally, for corporations with a parliament, the provisions of the Cantonal Council Act of June 28, 1976, apply mutatis mutandis.

1. The corporation may enter into private and public law contracts with other municipalities or private individuals. The provisions of Sections 46 and 47 of the Municipal Code are applicable.

1. The provisions of Sections 48 et seq. of the Municipal Act shall apply mutatis mutandis to the establishment or joining of a municipal association or a special-purpose association.

1. If the nature of the tasks and the situation of interests require it, Lucerne corporations may, with the approval of the governing council, enter into contracts with out-of-canton municipalities or join out-of-canton municipal or purpose associations.

1. The decision regarding the merger of corporations is made by their eligible voters.

2. The structure and the secondary consequences of the merger of corporations must be regulated in a public law contract. This requires the approval of the eligible voters.

1. Associations of corporations require approval by the Cantonal Council.

2. The Cantonal Council grants approval through a Cantonal Council resolution. It denies approval if the association is impractical.

3. The association cannot come into effect before the approval by the Cantonal Council.

1. The Consequences of the Merger of Corporations are Governed by the Provisions of the Municipal Act Mutatis Mutandis.

1. The dissolution of the corporation is decided by the eligible voters.

2. The following principles must be observed

a. the corporation's assets must continue to serve a public purpose,

b. the continuation of the corporation's duties must be ensured,

c. if no more appropriate solution is found, the corporation's assets are transferred to the municipality's assets to which the corporation geographically belonged.

3. The dissolution of a corporation requires the approval of the Cantonal Council. The council may attach conditions and directives to the transfer of duties and assets.

4. As long as the dissolution has not been approved by the Cantonal Council, no corporation assets may be transferred.

1. If a corporation can no longer manage itself or permanently fails to properly fulfill its duties, it can be dissolved by a decision of the Cantonal Council upon application by the Government Council.

2. The Cantonal Council decides on the use of the corporation’s assets following its dissolution. The following principles must be observed

a. The corporation’s assets must continue to serve a public purpose,

b. The continuation of the corporation’s duties must be ensured,

c. If no more appropriate solution is found, the corporation’s assets are transferred to the assets of the municipality to which the corporation belonged territorially,

d. The transfer of assets can be subject to conditions and directives.

3. As long as the dissolution has not been approved by the Cantonal Council, no corporation assets may be transferred.

1. Corporations in which the organizational expenses and the corporate assets are in an evident disproportion may be converted into public-law cooperatives. Their legal relationships are not altered as a result.

2. If a corporation is converted into a public-law cooperative, its role in managing the corporate assets shall continue. Sections 4 and 5 shall apply accordingly.

1. The corporation in the form of a public-law cooperative must include the designation "Cooperative" in its name.

2. The financial management can be independently organized. However, at least a budget must be prepared and double-entry bookkeeping maintained.

3. The competent cantonal supervisory authority reviews the bookkeeping of the public-law cooperative every two years for legality. It particularly examines compliance with the principles according to §§ 4 and 5.

4. The dissolution is governed by § 21 of the Introductory Act to the Swiss Civil Code of November 20, 2000. Instead of the department, the Government Council acts. It simultaneously decides on the use of assets. The principles of § 41 paragraph 2 of this law are applicable.

5. Otherwise, §§ 17 et seq. of the Introductory Act to the Swiss Civil Code shall apply.

1. The eligible voters shall decide on a transformation, simultaneously resolving on the statutes of the newly to be established cooperative.

2. A transformation must be approved by the Cantonal Council along with the statutes. The Council shall refuse approval if the transformation is not deemed appropriate.

1. The corporations manage their financial budgets according to the principles of legality, urgency, economy, and efficiency.

2. The accounting is based on the principles of double-entry bookkeeping, completeness, clarity, consistency, truthfulness, accuracy, specification, accrual accounting, and the gross principle.

3. The financial year is the calendar year. Exceptions are decided by the government council.

4. Corporations that apply the principles of impact-oriented administrative management (IOAM) for the entire administration or parts thereof shall observe the principle of effectiveness for those parts managed under IOAM. They may deviate from the gross principle and the principle of specification.

1. Financial Accounting Includes

a. the Administrative Account,

b. the Balance Sheet.

2. The Administrative Account is divided into an Ongoing Account and an Investment Account.

3. The accounts of institutions and enterprises without legal personality must be integrated into the municipal account.

4. The competent cantonal supervisory authority issues directives on the structure of financial accounting.

1. Financial assets are those assets that do not directly serve the fulfillment of public duties and can be sold without impairing such duties.

2. Administrative assets are those assets that directly serve the fulfillment of public duties and cannot be sold without impairing such duties.

1. The financial plan provides information about the anticipated financial development of the corporation over the next five years. It is revised annually.

2. The data for the first year of the planning period corresponds to the budget.

1. The budget includes the Operating Account and the Capital Account.

2. The corporations present the budget in the format of the Harmonized Accounting Model (HAM).

3. They may also present the budget as a consolidated form of the HAM, supplemented with accounts from cost accounting (Kore Model), or as a global budget for the entire administration or parts thereof, according to the principles of the Public Financial Management (PFM).

4. The competent cantonal supervisory authority issues directives concerning the presentation.

1. The budget estimate must encompass all anticipated expenses and expenditures of the fiscal year, as well as the expected revenues and income. Amounts that are not precisely determinable are to be estimated.

2. The foreseeable expense and expenditure of a special credit are to be included in the budget estimate. They must be designated as such and remain restricted until the approval of the special credit.

1. The budget for the current account shall be structured in such a way that, on average over several years, balanced financial statements are achieved.

2. The budget for the investment account shall be determined in such a way that the subsequent costs of investments, including their interest and depreciation, result in a manageable burden for the current account.

1. Credit signifies the authorization of an expenditure or an expense. Every expenditure and expense requires a credit.

2. All credits require a legal basis in a law or a resolution by eligible voters. The amount of credit should be carefully determined based on the anticipated financial requirements.

3. Credits must be used for the purpose for which they were authorized. Unclaimed credits expire.

4. Credits are classified as budgeted, supplementary, special, or additional credits.

1. An expenditure or an outlay is freely determinable if the deciding authority has a relatively wide discretion regarding the scope of the expenditure or the outlay, timing, or other modalities.

2. An expenditure or an outlay is binding if it is not freely determinable in the sense of paragraph 1.

1. Appropriation credits are the approved expenditure and spending items of the budget. They are binding for the Corporation Council. They expire if they are not utilized by the end of the fiscal year.

2. For obligations incurred against an appropriation credit, credit transfers and reserves can be made.

3. In the designated cases, the appropriation credit can also be approved as a global budget. The global budget is the specified balance of expenditures and revenues for each service group or service and must be adhered to strictly.

1. If an appropriations credit is insufficient, a supplementary credit must be requested in a timely manner, subject to paragraph 3.

2. For supplementary credits to global budgets, if necessary, the service mandate must be adjusted for each service group or service.

3. Supplementary credits do not need to be requested

a. for cost-related additional expenses and cost-related additional expenditures,

b. for committed expenses and committed expenditures,

c. for discretionary, unforeseeable expenses and discretionary, unforeseeable expenditures in individual cases, each for an amount up to two percent of the corporation's annual expenditures; the total amount of these additional expenses and additional expenditures must not exceed five percent of the corporation's annual expenditures in the fiscal year,

d. for discretionary expenses and discretionary expenditures for which designated revenues of at least the same amount are available in the fiscal year for the same purpose.

4. The eligible voters may establish different percentages in the corporation's regulations than those specified in paragraph 3c.

1. Special Credits are granted outside of the preliminary budget and supplementary credits. They are required for discretionary expenses or discretionary expenditures that

a. exceed ten percent of the corporation's annual expenses or

b. are to be approved as binding for more than one fiscal year.

2. The eligible voters may establish a different percentage than the one provided in subsection 1a by means of a legislative decree.

3. The Corporation Council shall maintain oversight of the use of the Special Credits, demonstrating the status of commitments made and those expected to be necessary for the completion of the project, as well as the payments made, at any given time.

1. If a special credit is insufficient, an additional credit must be requested from the voters in a timely manner, subject to paragraph 2.

2. Additional credits are not required to be requested

a. for increased expenditure and costs due to inflation,

b. for committed expenses and allocations,

c. for freely determinable, unforeseeable expenses and freely determinable, unforeseeable allocations that exceed the special credit by up to ten percent of the approved credit amount, but not exceeding 250,000 Swiss Francs.

3. The voters may establish different thresholds for the provisions outlined in paragraph 2c in the corporation's regulations.

1. In the filing of accounts, the current account and the investment account must be presented in the same manner as in the budget. If figures in the account significantly deviate from the budget, reasons must be provided. Additionally, the balance sheet must be submitted with the filing of accounts.

2. The following must also be presented

a. the assets of funds, foundations, and legacies managed by the Corporate Council,

b. the leasing, guarantee, and other contingent liabilities,

c. the committed contributions.

3. The assets and liabilities, particularly real estate, securities, external capital, and provisions, must be documented in the form of special overviews, insofar as their composition is not already apparent from the balance sheet.

4. In corporations that manage their entire administration or parts thereof according to the principles of the NPM (New Public Management), the account for the respective administrative units must also include the following information

a. the global account for each performance group or service, the contributions, and the investments,

b. information on the fulfillment of the basic mandate of the respective administrative units and the overarching goals achieved,

c. information on any commercial services.

1. Financial assets must be recorded at acquisition or production cost, or at market value if the latter is lower. Book value enhancements of financial assets are not permissible. Exceptions are decided by the competent cantonal supervisory authority.

2. Administrative assets are depreciated on a straight-line basis over their useful life. A fixed asset ledger must be maintained for administrative assets, showing the investments, the depreciation period, and the residual value.

3. Loans and participations are to be valued according to the regulations for financial assets.

4. Any excess expenditure that is to be capitalized must be depreciated on a straight-line basis over ten years at the expense of the current account.

5. The competent cantonal supervisory authority shall determine further details in an instruction.

1. Surpluses of expenditure are to be charged to equity capital. If such equity is not available, they are to be recorded as a balance sheet deficit.

2. Surpluses of revenue are to be used for the reduction of the balance sheet deficit. If no such deficit exists, administrative assets are to be additionally written down, freely available equity capital is to be created, or advance financing is to be undertaken.

3. When using the revenue surplus for providing a public benefit, § 5 paragraph 2c must be observed.

4. The municipal council submits an application for the use of the revenue surplus.

1. The investment and management of assets are the responsibility of the Corporation Council, subject to the powers of the voting members. Asset investment includes all changes in the composition of financial assets.

1. A decision on the budget estimate must be made annually by no later than the end of April of the budget year. If a decision is made after January 1st, the Corporation Council is not permitted to incur any discretionary expenses or expenditures until a decision is reached. Exceptions are outlined in § 55 paragraphs 3c and d.

2. If the budget estimate is rejected, the Corporation Council shall present a revised budget estimate by no later than the end of June of the budget year.

3. If the budget estimate is rejected again in a second vote, the Corporation Council shall submit the budget estimate to the Government Council for determination.

1. The Corporate Council presents the account to the eligible voters for approval annually, no later than April.

2. In municipalities where the budget is adopted before the beginning of the year, the municipal account must be submitted no later than June.

3. If the account is not approved, the Corporate Council presents a revised account that has been re-examined by the competent auditing body.

4. If approval is again refused, the Corporate Council submits the account to the competent cantonal supervisory authority for approval.

1. Accounts concerning special and additional credits must generally be submitted to the eligible voters no later than two years after the completion of the work.

2. If the credit is definitively and conclusively determined upon approval, no account statement needs to be presented.

3. A separate account statement can be dispensed with if the settlement of the credit occurs within a fiscal year and the credit utilization is evident from the corporation's account.

4. If the account statement is not approved, the corporation council shall present a revised account statement, reviewed by the competent auditing body.

5. If the approval is again refused, the corporation council shall submit the account statement to the competent cantonal supervisory authority for approval.

1. Each corporation ensures that it meets the democratic, legal, administrative, and financial minimum requirements according to statutory provisions.

2. The cantonal oversight supports the corporation in its independent quality assurance. The inspection reports from the cantonal supervisory authority are primarily directed at the corporation. The corporation shall undertake the necessary corrective measures in a timely manner and on its own responsibility.

3. Cantonal oversight is a tool for enforcing the minimum requirements within the corporation. If a corporation does not meet the minimum requirements in a timely manner on its own, the canton will address the deficiencies through supervisory measures.

1. The corporation shall submit the following documents to the cantonal supervisory authority

a. Budget and financial plan,

b. Accounts together with the minutes of negotiations, reports of the audit bodies with audit documents.

1. The cantonal supervisory authority examines, where necessary, whether the organization is compatible with the provisions of this law and whether the corporation meets the minimum requirements for lawful governance.

2. It checks annually whether the budget and accounts comply with the superior legal provisions and whether the corporation meets the minimum requirements for a healthy development of the financial household.

3. It is not authorized to examine the expediency.

1. A regulatory measure may be imposed if a corporation does not meet the minimum requirements.

2. Regulatory measures are

a. Instructions to a corporate body, excluding the voting members,

b. the substitute enforcement of a resolution or action of a corporate body,

c. the removal from office,

d. the appointment of a special administration whose tasks are defined by the government council,

e. the request to the cantonal council for the dissolution of a corporation under § 41.

1. Cantonal Supervisory Authorities are the Government Council and the supervisory bodies designated by it in the ordinance to the Municipal Law.

2. The Government Council may impose all supervisory measures pursuant to § 68 paragraph 2. The supervisory authority designated in the ordinance is responsible for issuing directives.

1. The specialized supervision provided for in the special laws remains reserved.

1. The competent supervisory authority may require the corporation to provide documents and ascertain the facts relevant to supervision ex officio.

2. In matters of financial supervision, the following procedure shall apply

a. The supervisory authority shall annually review the documents submitted by the corporation pursuant to § 66. If the documents are incomplete or insufficiently informative, it shall clarify the facts relevant to supervision.

b. If the supervisory authority does not identify any materially significant supervisory deficiencies, it shall record this in the control report and submit it to the corporation council for the eligible voters.

c. If the supervisory authority identifies materially significant supervisory deficiencies, it shall record these in the control report after granting the right to be heard. It may issue directives. Otherwise, paragraph 2b applies.

d. If the supervisory authority considers other supervisory measures necessary, it shall submit the control report, after granting the right to be heard, to the corporation council for the eligible voters as well as to the government council.

1. The Government Council may discontinue the proceedings, refer the matter back to the competent supervisory authority for resolution, order further fact-finding, or impose a supervisory measure.

2. The Government Council may assign the Department of Justice and Security to clarify the facts and, if necessary, order an administrative investigation.

3. The corporation bears the costs of the proceedings before the Government Council. The Government Council may waive the costs in whole or in part.

1. If a person elected by eligible voters for a term of office has committed serious or repeated criminal offenses or breaches of official duty such that their continuation in office is incompatible with public interests, the government council may provisionally suspend or remove them from office.

2. In the event of the removal from office of a person elected through a majority voting procedure, the corporate council shall schedule an extraordinary election for the remainder of the term. For individuals elected through a proportional representation system, it shall appoint a replacement according to the rules for National Council elections.

1. In the absence of any other legal remedy, the resolutions of corporate bodies can be challenged with a municipal complaint before the Government Council.

2. Entitled to file a municipal complaint against a resolution is anyone who has a legitimate interest in its annulment or amendment.

3. The complaint period is ten days from the contested vote or from the delivery or public announcement of the contested resolution.

4. The municipal complaint only has a suspensive effect if so ordered by the appeals authority or the instructing department.

5. A municipal complaint can challenge

a. the incorrect or incomplete determination of facts,

b. the incorrect application of the law, including the abuse or exceeding of discretion.

6. Otherwise, the provisions of the Act on Administrative Procedures apply accordingly.

1. Each corporation shall issue a corporation regulation by January 1, 2016, at the latest, or adapt its existing regulation to the provisions of this law by that date.

2. If a corporation fails to comply with this obligation, the governing council shall take the necessary measures and regulations on its behalf and at its expense. The corporation council shall be heard before such orders are issued. An administrative court complaint against the orders of the governing council is inadmissible.

3. As long as and to the extent that corporations have not adapted and enacted their corporation regulation, the provisions of the Law on Corporation Municipalities of October 9, 1962, apply. The provisions regarding citizenship rights and changes in the corporation structure come into effect immediately.

1. The Law on Municipal Corporations of October 9, 1962, as well as the amendments to this law adopted on June 17, 2013, are hereby repealed.

1. The Civil Rights Act of November 21, 1994, and other laws are amended in accordance with the Annex.

1. The Executive Council determines the commencement.

2. The law is subject to an optional referendum.