State Contribution Law

1. State Contributions: Definition

State contributions are earmarked monetary benefits for the fulfillment of tasks in the public interest.

2. They are granted as cost shares, cost contributions, or subsidies. They are non-repayable or conditionally repayable.

3. The provisions of this Act apply mutatis mutandis to loans and participations at preferential conditions, guarantees, and other declarations of guarantee.

4. This Act does not apply to contributions according to the Lottery Fund Act of November 2, 2020.

10 Cost shares are state contributions to which the law grants a claim and whose amount results from legislation.

Cost contributions are state contributions to which the law on cost contributions grants an entitlement, and whose amount is determined in the global budget.

**1 Subsidies are state contributions for the support or

maintenance of services in the public interest, to which the law

grants no entitlement.**

**2 Subsidies are considered tied expenditure if:**

a. the purpose of the subsidy and the maximum rate are stipulated by law,

b. they are provided from a framework credit as foreseen in the law,

c. the law provides for approval through a budget credit, and the

commitment, processing, and disbursement occur within the same fiscal year.

**3 All other subsidies are subject, as new expenditure, to the

provisions of the State Constitution regarding the financial referendum.**

16 **If the fulfillment of a task by several municipalities is more effective or economical, the canton may make its financial contributions thereto dependent on the collaboration of the municipalities.**

**Prerequisite for contributions to municipalities**

1. 1. 21-111

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132.2

Limitation

State Contributions Act

The Government Council decides on the eligibility for contributions

of private individuals for a maximum duration of eight years.

General

II. Assessment

1 Applications shall be processed in accordance with the law applicable at the time of the commitment.

2 State contributions shall be granted in accordance with the extent of public interest. The Government Council shall regulate the method of assessment, in particular eligible expenses and lump-sum payments.14

3 For investments, a fixed amount shall generally be disbursed.

Impact-

Oriented

Public

Management

1 State contributions may be globalized for a limited period within the framework of cantonal projects of results-oriented management, in deviation from existing legal bases. The Cantonal Government Council shall regulate the lump-sum payment of such state contributions in an ordinance.17

2 The globalization must not significantly alter the financial burden on the state and the municipalities.

§§ 6 and 7.15

Eligible

Expenses

1 Expenditures shall be credited only insofar as they are necessary

for the effective, economic, and efficient fulfillment of tasks

and do not exceed the state's expenditure for similar services.12

2 Taxes, building interest, and capital interest shall only be creditable

insofar as legislation so provides.

3 If the acquisition of real estate is eligible for contributions, the

actual expenditures shall be credited, but not exceeding the market value.

4 In the case of transfer from financial assets to administrative assets,

the acquisition price and its appropriate interest, as well as value-enhancing

expenditures for the real estate, reduced by its

income, shall be credited, but not exceeding the market value.

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State Contributions Act

III. Procedure

132.2

The provision of state contributions requires that the applicant

a. has submitted a written application with the necessary documents,

b. is able to fulfill the conditions,

c. provides reasonable own contributions.

Prerequisites

1 Applications shall be decided upon by resolution or decree. The Government Council may delegate the decision to the directorates or offices.

2 The decision shall specify, in particular

a. legal basis,

b. calculation, maximum amount, and period of validity,

c. further conditions and requirements for the proper use of the state contribution.

3 When subsidies are committed for the first time, a reservation regarding the approval of credits within the framework of the budget estimate must be included.

4 State contributions for investments shall be reduced if the applicant incurred financial obligations prior to the commitment without authorization from the authority responsible for the decision.

**1 Payment of Contributions**

State contributions are disbursed when the conditions and requirements are met, and the calculation bases are available.

2 State contributions will be reduced or denied if

a. the conditions and requirements are not, no longer, or not fully met,

b. not all calculation bases are available,

c. they exceed the expenditures,

d. the payments do not reach the minimum amounts determined by the Government Council.

3 The Government Council shall issue provisions on partial payments.

4 The final payment will be ordered when the final statement of accounts has been approved by the subsidy authority.

Recipients of state contributions must provide the financial control authority with the financial oversight documents necessary for the audit of the contribution payments upon request and provide the required information.

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132.2

IV. Securing the Purpose of the Contribution

State Contributions Act

Earmarking

Exemption

Unlawfully

pledged

or

paid out

state contributions

Statute of Limitations

Penalty

provision

The state contributions must be used in accordance with their purpose and in compliance with the conditions and requirements.

The Government Council may, if the conditions for contributions are no

longer met or other important reasons exist, prematurely approve the

diversion from purpose or the alienation, or exempt from individual

conditions and requirements. It shall issue provisions regarding the

reclamation.

1 State contributions that have been wrongly promised or paid out shall be revoked or reclaimed.

2 If the wrongful promise or payment of the state contribution is based on culpable conduct by the recipient, the state contributions shall be reclaimed together with interest of 5% per annum from the date of payment, and damages shall be claimed.

3 Recourse to reclamation shall be waived

a. to the extent that the recipient has taken measures in reliance on the contribution decision which can only be undone with unreasonable financial losses; and

b. if the legal violation or the incorrect or incomplete determination of the facts was not easily discernible for the recipient.

1 Claims for state contributions, as well as for repayments,

prescribe after five years.

2 The limitation period begins with the maturity of the claim or the

accrual of the right to claim repayment.

13

1 A fine of up to CHF 20,000 shall be imposed on anyone who

a. makes incorrect or incomplete statements about material facts to obtain a state contribution;

b. fails to inform an official body about material facts in connection with the provision of a state contribution.

2 If the perpetrator acts for personal gain, they shall be punished with a fine of up to CHF 50,000.

3 Negligent conduct is not punishable.

4 Incitement and complicity are punishable.

State Contribution Act

IVa. State Contribution Controlling

132.2

11 1 State subsidy controlling serves the purpose of setting goals, planning, and managing state subsidies.

2 State subsidy controlling is the responsibility of the directorates.

V. Amendment of Existing Law

The following laws are amended as follows: . . .

5 Amendment of Existing Law

VI. Final Provisions

1 For the securing of the purpose of state contributions that have been

committed prior to the entry into force of this law, the provisions of this law are

applicable.

2 The Government Council shall decide, within two years from the entry

into force of this law, on the eligibility of private entities for contributions

according to § 4.

This Act is subject to a popular vote. The Government Council determines the date of entry into force6.

1 OS 51, 77.

2 LS 131.1.

3 LS 612.

4 Obsolete.

5 For text, see OS 51, 81.

6 In force since January 1, 1991 (OS 51, 350).

7 Inserted by the Framework Act on Administrative Reform of December 1, 1996 (OS

54, 29). In force since January 1, 1997 (OS 54, 32).

8 Inserted by the Financial Control Act of October 30, 2000 (OS 56, 465). In

force since July 1, 2001 (OS 56, 500).

9 Inserted by the Act on the Creation of Legal Bases for Cost Contributions

of March 7, 2005 (OS 60, 277). In force since January 1, 2006.

10 Version according to the Act on the Creation of Legal Bases for Cost

Contributions of March 7, 2005 (OS 60, 277). In force since January 1, 2006.

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132.2

State Contributions Act

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11 Inserted by the Act on Controlling and Accounting of January 9, 2006

(OS 62, 354; ABI 2004, 89). In force since April 1, 2008 (OS 63, 134).

12 Version according to the EG BBG of January 14, 2008 (OS 64, 195; ABI 2006, 1153).

In force since August 17, 2009 (OS 64, 389).

13 Repealed by the Act on the Adaptation of Cantonal Administrative Procedure Law

of March 22, 2010 (OS 65, 390; ABI 2009, 801). In force since July 1,

2010.

14 Version according to the Fiscal Equalization Act of July 12, 2010 (OS 66, 747; ABI

2009, 172). In force since January 1, 2012.

15 Repealed by the Fiscal Equalization Act of July 12, 2010 (OS 66, 747; ABI

2009, 172). In force since January 1, 2012.

16 Inserted by the Municipal Act of April 20, 2015 (OS 72, 183; ABI 2013-

04-19). In force since January 1, 2018.

17 Version according to the Municipal Act of April 20, 2015 (OS 72, 183; ABI 2013-

04-19). In force since January 1, 2018.

18 Inserted by the Lottery Fund Act of November 2, 2020 (OS 75, 663; ABI

2019-02-15). In force since January 1, 2021.