Law on the Formation of Municipal Consortia

1 Two or more Municipalities may form a Consortium for the exercise of one or more activities of public interest within their competence.

2 If provided for by the articles of association, the Consortium may be delegated the performance of ancillary tasks through service mandates.

3 The Consortium is a public law corporation.

The present Law is applicable to all Consortia unless otherwise established by special Laws.

The Consortium may be established voluntarily, by decision of the Assemblies, respectively of the Municipal Councils of the interested Municipalities.

1 The Consortium may be compulsorily established by decree of the Council of State, after hearing the interested Municipalities, when this is justified for the rational exercise of one or more activities and voluntary establishment is not possible, particularly due to the refusal of one or more Municipalities or the failure of agreement between them.

2 Any interested Municipality may appeal the decree of consociation to the Grand Council within 60 days.

3 The appeal has suspensive effect; the Grand Council decides within 6 months of receiving the appeal.

4 The decision of the Grand Council may be challenged before the Cantonal Administrative Court within 30 days.

The Consortium is governed by its consortium bylaws.

The articles of association must indicate

a) the consortium municipalities;

b) the name of the Consortium;

c) the purpose of the Consortium and the municipal powers delegated to it;

d) the territory and the headquarters;

e) the duration of the Consortium;

f) the consortium bodies, their composition, their functioning, and voting rights, in accordance with the provisions of this Law;

g) the form of financing and the key for distributing current operating expenses and investments among the individual Municipalities;

h) the delegation of powers to the Delegation and the consortium administration;

i) the statutory duties of the external control body;

l) the procedures for the liquidation of the Consortium and the destination of the consortium assets in case of dissolution;

m) the provisions relating to aspects such as financial participation, ownership, and technical-management aspects in the event of new Municipalities joining;

n) the tasks delegated pursuant to Art. 1 para. 2;

o) any other rule on the organization and functioning of the Consortium not explicitly referred to a consortium regulation.

1 In the case of voluntary establishment, the draft by-laws are prepared by a delegation of the Municipalities of the communes concerned.

2 The draft by-laws are adopted by the Assemblies, respectively by the Municipal Councils, as part of the resolution on joining the Consortium.

3 The adoption of the consortium by-laws is equivalent to the adoption of a communal regulation in accordance with the provisions of the Municipal Organic Law.

4 The Delegation of the Municipalities transmits the consortium by-laws to the Council of State, which decides within 60 days on any disagreements or oppositions from the communes concerned and ratifies them; the decision must be reasoned.

1. In the case of compulsory establishment, the statute is adopted according to the provisions of art. 7.

2. If the interested Municipalities do not provide for it within 6 months, the statute will be issued by the Council of State after having first consulted the Municipalities themselves; art. 4 is applicable by analogy.

The Consortium acquires legal personality with the ratification or with the promulgation of its statute by the Council of State.

1 The Statute may be amended at any time upon proposal by

a) a member Municipality;

b) the Consortium Delegation;

c) the Cantonal Supervisory Authority.

2 The Consortium Delegation shall examine the proposals referred to in letters a) and c) and forward them with its written opinion to the member Municipalities; for the remainder, the procedure set forth in Art. 7 shall apply by analogy.

An amendment to the statute may be imposed at any time by the Council of State, after having first heard the Consortium and the Municipalities; Article 4 is applicable by analogy.

The number of members of the consortium bodies may be changed only for the beginning of an election period.

The provisions of Articles 10 to 11 and the statutory provisions are applicable by analogy to the adhesion of new Municipalities.

1 The mandatory organs of the Consortium are

a) the Consortial Council;

b) the Consortial Delegation.

2 The organs of the Consortium remain in office for a four-year term.

3 The examination of financial management is entrusted to an external audit body.

4 The statute may legitimate the Consortial Council to delegate decision-making powers to the Delegation, as well as the Delegation to delegate them to the Secretary and to the consortial administration; the provisions of the Municipal Organic Law are applicable.

1 The Consortium Council** is composed of one representative and one alternate for each Municipality. The alternate only attends in case of absence of the incumbent.

1 Unless otherwise provided by the Articles of Association, each Municipality is entitled to a number of votes in the Consortium Council in proportion to its population.

2 The modalities are established by the Articles of Association.

3 Exceptionally, a Municipality may hold an absolute majority of votes.

4 Each Municipality is entitled to at least one vote.

5 The representatives act upon instructions from the Municipal Councils of the Municipalities and submit an annual report to them.

6 The representatives may be recalled by the appointing body, reserving the right of the Municipal Council to decide on temporary suspension; in such case, the substitute participates.

1 The Consortium Council, reserving the powers of the Municipalities, is the superior body of the Consortium.

2 In particular, it

a) examines and approves the Consortium’s estimated and final accounts;

b) exercises supervision over the Consortium administration;

c) authorizes investment expenditures;

d) makes appointments within its competence;

e) decides on Consortium works based on estimates and definitive projects and grants the necessary credits;

f) specifically authorizes the acquisition, donation, succession, exchange, lease, alienation, or change of purpose of Consortium assets;

g) adopts, amends, suspends, and repeals Consortium regulations;

h) authorizes the Delegation to undertake, litigate, compromise, or settle; administrative procedures are reserved;

i) exercises all powers not expressly conferred by law upon another body.

3 The Consortium statute may provide for the delegation of decision-making power to the Delegation for the competencies referred to in letters c), e), f), h), and i) of the preceding paragraph, establishing its limits.

4 The Consortium Council sets the deadline by which the credit referred to in letters c) and e) lapses, if not utilized.

1 The Consortium Council shall meet at least in two ordinary annual sessions, on the date provided by the statute, for the examination and resolution on the Consortium's accounts.

Furthermore, when requested

a) by the Consortium Delegation;

b) by at least one-fifth of the Municipalities of the member Communes, with a written and reasoned request to the Delegation, indicating the matters to be discussed; the Delegation shall set the date of the session and order its convocation within 60 days.

2 The Consortium Council shall meet in public session and may only discuss and decide if representatives of the Communes holding an absolute majority of votes are present.

3 The Consortium Council shall be directed by a President appointed according to the statutory provisions.

4 Unless otherwise provided by the statute, the Consortium Council shall decide by an absolute majority of the votes present.

1. The Consortial Council shall also function and deliberate by analogy, according to the provisions of Articles 46 para. 1, 50 para. 3, 51, 52, 55, 57, 62, 64, 65, 66 of the Municipal Organic Law.

2. The Statute shall otherwise regulate the functioning of the Consortial Council.

3. Each Municipality, through its representative, may submit proposals on matters within the competence of the Consortial Council in the form of a motion.

4. The motion shall be examined by the Delegation, which shall provide its preliminary opinion to the Municipal Councils within 6 months.

5. The Consortial Council shall decide on the motion within one year of its submission.

### 1. The Consortium Delegation

The Consortium Delegation shall be composed of a minimum of three and a maximum of five members, including the president.

1 The Consortial Delegation is appointed by the Consortial Council at its inaugural meeting. [1]

2 All citizens domiciled and entitled to vote within the consortial district are eligible.

3 The election takes place by tacit consent when the number of candidates does not exceed the number of those to be elected.

4 In selecting the members of the Consortial Delegation, the Consortial Council must, where possible, take into account criteria of experience, training, and equitable representation of the member municipalities and political groups within the consortial district.

5 The office of a member of the Consortial Delegation is incompatible with that of a State Councillor, a member of the Consortial Council, or an employee of the Consortium.

[1] Par. amended by Law of 12.3.2012; in force from 8.5.2012 - BU 2012, 171.

1 The President and Vice-President of the Consortium Delegation are elected by the Delegation from among its members, by secret ballot.

2 The election shall take place by tacit consent when there is only one proposal.

1 The Consortial Delegation directs the administration of the Consortium and safeguards its interests; it is, in particular, the executive body for the decisions of the Consortial Council and represents the Consortium before third parties.

2 The Consortial Delegation shall, in particular, perform the following functions

a) prepares the annual provisional and final accounts;

b) ensures the collection of contributions from the Municipalities, taxes and contributions from public bodies, and funding received from other sources;

c) ensures the collection of receivables and the payment of commitments within the limits set by the provisional budget;

d) oversees the enforcement of the consortial regulations;

e) appoints the President and Vice-President at the first meeting of the Consortial Delegation;

f) appoints the employees of the Consortium.

3 The Delegation shall exercise the decision-making powers delegated to it pursuant to Art. 17 para. 3.

The Consortial Delegation operates, by analogy, according to the provisions of Title II, Chapter IV of the Municipal Organic Law, with the exception of Articles 80, 81, 82, 106 to 112 inclusive, and 116.

1 The consortium secretary is appointed by the Consortium Delegation.

2 He also serves as the secretary of the Consortium Council.

3 The provisions of Title III, Chapter I of the Municipal Organizational Law are analogously applicable to consortium employees.

1. Consortia must establish an external oversight body.

2. It operates according to the procedures stipulated by the Municipal Organic Law and the Regulation on Financial Management and Accounting of Municipalities.

1 Every Consortium provides for its own financing through

a) the participation fees of the Municipalities;

b) the imposition of taxes and contributions;

c) subsidies from public bodies;

d) other sources established by the statute.

2 The Consortium may not levy taxes.

The statute establishes the methods for allocating consortium expenses among the Municipalities.

Funding for consortium investments [2]

[2] Marginal note amended by L 12.3.2012; in force since 1.6.2012 - OJ 2012, 199.

[3] 1 The affiliated Municipalities are responsible for their shares according to what is defined by the consortium statutes approved by the Municipalities.

2 The statute establishes whether the financing and amortization of new investments, as well as that of consortium investments already made, is to be borne by the Consortium or directly by the affiliated Municipalities.

3 If the financing and amortization of investments are placed directly at the expense of the affiliated Municipalities, in parallel with the progress of the same and upon request, the Municipalities pay the Consortium their respective shares of the investment net of any subsidies, activating them in the municipal accounts. For investments already made, the Delegation agrees with the Municipalities on the methods for recovering the residual value.

4 Should the Consortium be denied the opening of credits on the money market, the Council of State may grant a guarantee with one or more banking institutions; in this case, the Consortium may be subjected to special surveillance measures to be set by the Council of State.

5 The Council of State may issue directives for the application of this article and regulate specific aspects in the Implementing Regulation.

[3] Art. amended by L 12.3.2012; in force since 1.6.2012 - BU 2012, 199.

1 The statute lists the taxes and contributions that may be levied.

2 The regulation, adopted by the Consortium Council, defines the taxable persons, the calculation criteria, and the amount thereof.

1. For the maintenance of accounts, the provisions of the Municipal Organic Law and the Regulation on Financial Management and Accounting of Municipalities are applicable by analogy.

2. The Council of State shall provide for the gradual introduction of the new harmonized accounting plan in all Consortia.

3. It shall issue the provisions for the approval of individual accounting plans, the directives, and the valuation criteria for the preparation of balance sheets.

4. Specific sectoral provisions are reserved.

1 The Consortium must adopt a financial plan, in accordance with the provisions of the Municipal Organic Law.

2 The financial plan must be submitted to the Consortium Council for discussion.

3 The Consortium Delegation shall send a copy of the financial plan to the Municipalities in advance, at least two months before the meeting of the Consortium Council at which it is discussed.

4 Consortia of limited scope may provide in their statutes for the waiver of the preparation of a financial plan.

The Consortial Delegation sends a copy of the provisional accounts to the Municipalities and the Council of State, at least two months before the meeting of the Consortial Council.

1 The consortium delegation sends a copy of the final accounts to the Municipalities, the Council of State, and the external auditing body, at least two months before the session of the Consortium Council.

2 The external auditing body drafts its report addressed to the Delegation and the Municipalities within one month of the session of the Consortium Council.

3 The Municipalities of the affiliated Communes may request specific verifications and information from the auditing body.

4 The consortium delegation transmits a copy of the approved final accounts to the Council of State.

Involvement of the Communes; Information to the Communes

1 Projects, budgets, and financing plans related to investments are to be submitted in advance to the Municipalities of the affiliated Communes, at least four months prior to the session of the Consortial Council.

2 The other matters referred to in Art. 17 must be submitted to the Municipalities at least two months prior to the session of the Consortial Council.

3 If the Municipality of an affiliated Commune so requests, the Consortial Delegation is obliged at all times to provide information and documentation on the management of the Consortium.

4 The Municipalities shall annually inform their Legislative bodies about the activities of the Consortium.

The Municipality, through the Municipal Council, is entitled to file appeals against the decisions of the consortium bodies and the objections referred to in Art. 7 para. 4, 10 para. 2, 43 para. 2 and 46.

1 The Consortium's regulations are adopted by the Consortium Council.

2 The regulations are publicly displayed in all member municipalities for a period of thirty days, during which every person or entity directly concerned may appeal to the Council of State against the provisions contained therein. [4]

3 For matters not provided for in this law, Articles 186 et seq. of the Municipal Organic Law are applicable by analogy.

[4] Par. amended by Law of 24.9.2013; in force since 1.3.2014 - BU 2013, 471.

For the execution of consortial tasks through agreements and service mandates, the provisions of the municipal organic law are analogously applicable.

The decree establishing or dissolving a Consortium must be published in the Official Gazette and on the bulletin board of the member Municipalities.

1 The President of the Consortium Delegation shall, within five days, arrange for the posting on the notice boards of all member Municipalities and for the publication in the Official Gazette of the resolutions of the Consortium Council and, when the general interest requires it, of the resolutions of the Consortium Delegation.

2 For the purpose of the running of terms, the publication in the Official Gazette shall be authoritative.

The provisions of the Municipal Organic Law are analogously applicable to communal property.

Regarding the State's oversight of the Consortium and appeals against decisions made by the Consortium's bodies, the provisions of the municipal organic law are applicable by analogy.

1 Upon the expiration of the term established by the Statute, the Consortium shall proceed with liquidation, unless an extension has been decided upon.

2 For the decision regarding the extension, the procedure established by Article 10 in conjunction with Article 7 of this Law shall be applicable.

1. For the dissolution of a Consortium, unless otherwise provided by the articles of association, a decision by absolute majority of the member Municipalities and of the votes of the Consortial Council is required, subject to ratification by the Council of State.

**2. Member Municipalities have the right to appeal the decision of the Council of State before the Grand Council within 60 days.**

**3. The appeal has a suspensive effect. The Grand Council shall decide within 6 months of receiving the appeal.**

**4. The decision of the Grand Council may be challenged before the Cantonal Administrative Court within 30 days.**

1 Having heard the Municipalities of the affiliated Communes, the Council of State may ex officio dissolve the Consortium that

a) no longer meets the legal requirements;

b) no longer carries out the activity for which it was constituted; or

c) carries out an activity that is no longer supported by a public interest.

2 The Council of State defines the liquidation procedures and decides the destination of the consortium assets.

3 Against the dissolution decree, the Communes and the consortium bodies have the right to appeal to the Cantonal Administrative Court within 30 days of publication.

1. Once the dissolution is decreed, the liquidation of the Consortium takes place according to the statutory provisions and the procedures established case by case by the Council of State.

2. The liquidation report must be ratified by the Council of State.

3. In the event of the constitution of a new Consortium that takes over the activity of previous ones, the Council of State issues the necessary specific provisions.

1 The statutes and regulations of existing Consortia must be conformed to this law within the term fixed by the Council of State.

2 The statutes thus modified must be submitted for ratification by the Council of State.

3 The transmission of documents shall be carried out by the Consortial Delegation.

4 The proposal for the new statute, prepared by the Consortial Delegation and pre-advised by the Consortial Council, must be submitted for approval by the Assemblies or Municipal Councils of the member Municipalities.

5 For the remainder, the procedure set forth in Article 10 in conjunction with Article 7 of this Law is applicable.

6 Having consulted the Municipalities of the member Municipalities, the Council of State may ex officio adapt the statutes of Consortia that have not done so within the established deadline. In other cases, Consortia are subject to the ex officio dissolution procedure referred to in Article 45.

7 The Council of State may authorize, for a period of 5 years from the entry into force of this Law, the retention of existing statutes in cases of Consortia established for a limited duration or for activities of minor entity, or for Consortia instituted by virtue of the delegation from the previous Article 2 paragraph 2 of the previous Law on the Consortia of Municipalities of 1974.

This Law shall apply to all Consortia in the process of formation at the time of its entry into force.

The Law on the Consortia of Municipalities of February 21, 1974 is repealed.

1 Upon expiry of the time limits for exercising the right of referendum, this Act shall be published in the Official Bulletin of Laws and Executive Acts.

2 The Council of State shall determine its effective date. [5]

Published in OB 2011, 421.

[5] Entry into force: 1 September 2011 - OB 2011, 421.