Communal economy

From Encyklopedia Administracji Publicznej

COMMUNAL ECONOMY – economic activity of local-government units (municipality, county, self-government voivodship). It is run on the basis of the Municipal Economy Act, which does not contain a legal definition of c.e., it only defines it in general as, in particular, tasks of public utility character, which aim to provide current and uninterrupted satisfaction of the collective needs of the population by providing universally available services. Economic activity is defined by the legislator as any production, construction, trade and service activity, carried out for profit and for own account. A special emphasis is put on the profit and burden of the entity conducting business activity with all liability. Since January 2001, the law on economic activity has been in force, the catalogue has been extended by including exploration and exploitation of natural resources. The legislator emphasizes the continuous and organised nature of running a business. Local-government units can carry it out in two spheres: in the sphere of commercial business and in the sphere of public utilities. Until December 2000, c.e. was conducted on the basis of the 1988 Act on economic activity (the so-called Wilczek Act) [ J. Wojnicki ].

Literature: C. Banasiński i in., Ustawa o gospodarce komunalnej. Komentarz [The Act on communal economy. A commentary], Warszawa 2017 ■ M. Barański i in., Samorząd lokalny i wspólnoty lokalne [Local government and local communities], Warszawa 2007 ■ A. Miszczuk i in., Gospodarka samorządu terytorialnego [The economy of local government], Warszawa 2013.