Text consolidated by Tulkošanas Valsts valodas centrs (State Language Centre) with amending laws of:

6 november 2008;

16 june 2009;

1 december 2009.

If a whole or part of a section has been amended, the date of the amending law appears in square brackets at the end of the section. If a whole section, paragraph or clause has been deleted, the date of the deletion appears in square brackets beside the deleted section, paragraph or clause.

The Saeima1has adopted

and the President has proclaimed the following Law:

Law On Public Transport Services

Chapter I

General Provisions

Section 1. Terms used in this Law

The following terms are used in this Law:

1) route – an itinerary of a public transport vehicle (regardless of the type and number of vehicles) between two destinations of movement, which has been approved in accordance with the procedures specified in regulatory enactments;

2) route network – a set of routes created using the existing network of motorways, streets or railway tracks, in which public transport services are organised, ensuring State guaranteed public transport services of specific quality and amount, which are available to every member of the society, including the categories of passengers determined by the State subjected to preferential conditions, and adjusted for specific passenger categories with special needs;

3) administration of a route network – planning, elaboration, approval, maintenance, development and improvement of a route network;

4) [6 November 2008];

5) ordering party – the State or a local government, which organises public transport services within the competence thereof;

6) route of city significance – a route, which provides moving within the administrative boundaries of a republic city, as well as from such city to the nearby territories;

7) regular carriage of passengers – carriage of passengers along a previously determined route, with a previously determined intensity and regularity, for a constant passenger fare;

8) regional route of inter-urban significance – a route, which provides moving within the territory of the State from one administrative territory to an administrative territory in another planning region or which connects republic cities;

9) regional route of local significance – a route, which provides moving within the administrative territory of one municipality, from this municipality to nearby territories or to another municipality within the borders of a planning region;

91) voyage – movement of a public transport vehicle according to the route from one destination to another destination;

10) public transport services – regular carriage of passengers by public transport vehicles organised by the ordering party and available to residents, which the passengers may use in accordance with the procedures specified in regulatory enactments;

11) [6 November 2008];

12) organisation of public transport services – granting of the right to the carrier to provide public transport services;

13) order of public transport services – a procedure, in accordance with which the ordering party selects carriers and grants the right to provide public transport services within a route network, route or voyage; and

14) public transport vehicles – transport vehicles involved in the provision of public transport services (bus, tramway, trolley bus, train), which are intended, adjusted and equipped for carriage of certain number of passengers.

[6 November 2008]

Section 2. Purpose of the Law

The purpose of this Law is to ensure the availability of public transport services to residents.

Section 3. Application of this Law

(1) This Law shall determine the competence of authorities in the field of public transport services and the conditions for operation and organisation of public transport services, provide for the sources of financing necessary for the provision of public transport services and the financing principles.

(2) This Law shall apply to public transport services within the territory of Latvia.

(3) Issues related to the sector of public transport services shall also be regulated by Regulation (EC) No 1370/2007 of the European Parliament and of the Council of 23October 2007 on public passenger transport services by rail and by road and repealing Council Regulations (EEC) No1191/69 and 1107/70 and by other regulatory enactments.

[6 November 2008]

Chapter II

Competence of State Authorities, Local Governments and the Road Transport Administration in the Public Transport Sector

Section 4. Competence of State Authorities and Local Governments in the Public Transport Sector

(1) The Ministry of Transport, planning regions and local governments shall, according to the competence thereof, implement the State administration in the public transport sector.

(2) The Ministry of Transport, authorities thereof, planning regions and local governments shall monitor the observance of laws and regulatory enactments in the public transport sector in accordance with the competence thereof and organise public transport services in the route network.

[6 November 2008]

Section 5. Competence of the Road Transport Administration, Republic Cities and Planning Regions in the Public Transport Sector

(1) The following shall be within the competence of the Road Transport Administration:

1) the management of regional routes of inter-urban significance of a route network on behalf of the State after establishment of the opinion of regional development councils;

2) the organisation of public transport services on behalf of the State within regional routes of inter-urban significance of a route network and within all railway routes;

3) the ensuring of the administration, distribution and granting of financial resources allocated from the State budget to the public transport in accordance with the procedures specified by the Cabinet;

4) the organisation of the services related to the public transport on behalf of the State:

a) the establishment and maintenance of a single system for the trade, booking and accounting of public transport tickets in accordance with the procedures specified by the Cabinet,

b) the co-operation with the owners of line structures and infrastructure managers;

5) the provision of proposals to local governments of republic cities or planning regions regarding the organisation of public transport services in routes of city significance or regional routes of local significance of a route network accordingly; and

6) the co-ordinatation of a draft decision of the planning region regarding a route network or a route or the submission of reasoned objections against the establishment of such route or route network; and

7) [6 November 2008].

(2) The competence of a local government of republic city shall include:

1) the management of the routes of city significance of the route network within the administrative territory thereof;

2) the organisation of public transport services in the routes of city significance of the route network;

3) the provision of proposals to the Road Transport Administration or a planning region regarding the organisation of public transport services within the route network under the competence thereof;

4) the rational supervision of the financial resources allocated to the public transport from the State budget, local government budget and special budget of a local government; and

5) the ensuring of the construction of public transport stops and the maintenance of infrastructure within the administrative territory thereof.

(3) The competence of a planning region shall include:

1) the management of regional routes of local significance of a route network in the interests of local governments, inlcuding those regional routes of local significance, which ensure the moving within the territories of cities included in a municipality, pursuant to the resources provided for in the State budget for the provision of public transport services after co-ordination with the relevant local government and the Road Transport Administration;

2) the organisation of public transport services in regional routes of local significance of a route network in the interests of local governments, including those regional routes of local significance, which ensure the moving within the territories of cities included in a municipality, pursuant to the resources intended in the State budget for the provision of public transport services after co-ordination with the relevant local government and the Road Transport Administration;

3) the submission of a draft decision regarding the establishment or amending of a regional route (route network) of local significance to the Road Transport Administration;

4) if the Road Transport Administration does not agree with the draft decision submitted – the taking of a decision regarding further non-examination, amending or submission of co-ordination refusal for consideration to the Ministry of Transport;

5) the provision of proposals to the Road Transport Administration and a local government of republic city regarding the organisation of public transport services within route network under the competence thereof; and

6) the rational supervision of the financial resources allocated to the public transport from the State budget and local government budget.

[6 November 2008; 16 June 2009 and 1 December 2009]

Chapter III

Organisation of Public Transport Services

Section 6. Principles for Organisation of Public Transport Services

(1) Public transport services shall be organised within a route network.The procedures for the development of a route network shall be determined by the Cabinet.

(2) [6 November 2008]

(3) Public transport services shall be organised on the basis of:

1) a request for public transport services, taking into account the necessary intensity and regularity of carriage in a route network, the amount and quality of services, economic security of the carriage and providing for the type of organising the carriage of passengers;

2) the priority of use of public transport vehicles, which is determined according to the following criteria:

a) economic criteria (for example, expenditures, efficiency),

b) passenger flow.

(4) A route network shall be created with a view to satisfy the demand of residents for public transport services and to ensure the possibility to attend educational institutions, medical treatment institutions, work places, State and local government authorities within the route network during the standard (generally accepted) working hours thereof.

(5) In creating a route network outside cities, the possibility for pupils to attend educational institutions shall be ensured at first.

(6) A route network shall be developped, ensuring:

1) in carriage of city significance:

a) the connection of the city centre with other parts of the city,

b) the interconnection of the parts of the city,

c) the connection of the city centre or parts of the city with the nearest surrounding territories;

2) in regional carriage of local significance:

a) the interconnection of adjacent municipalities,

b) the reachability of a parish or city administration within a municipality,

c) the mutual reachability of the cities of adjacent municipalities included in the planning region, and

d) the connection of the municipalities included in the planning region with the nearest city in the planning region, which is not located in the relevant municipality;

3) in regional carriage of inter-urban signifiance:

a) the connection of Riga City with another republic city,

b) the connection of Riga City with the municipalities, which are not located in the Riga planning region, and

c) the connection among municipalities and cities, which are located in different planning regions.

(7) In planning routes of a regional route network of inter-urban significance with large passenger flow, the routes along railway tracks shall be created at first.

(8) Public transport services shall be organised, taking into account the following order for the development of route networks for carriage outside a city:

1) a regional route network of inter-urban significance; and

2) a regional route network of local significance.

(9) In organising public transport services within the boundaries of one administrative territory outside a city, the regional routes of inter-urban significance of a route network shall be of priority, if the regional route of local significance matches completely or by more than 70 per cent of the total length thereof with the part of the regional route of inter-urban significance.

(10) The Cabinet shall determine the procedures for determination of the demand for public transport services and the necessary amount of a route network, as well as the procedures for organisation of public transport services within a route network.

[6 November 2008]

Section 7. Route Network Borders

(1) If a route of city significance of a route network overruns the administrative boundaries of a city, a local government of republic city and a planning region shall, upon co-ordination with the Road Transport Administration, enter into an agreement regarding the boundaries of the city and of the regional route network of local significance.

(2) The local government of Riga City and Riga planning region shall enter into the agreement referred to in Paragraph one of this Section, if a route of city significance of the Riga City route network overruns the administrative boundaries of the city by more than 15 kilometers.

(3) In entering into the agreement referred to in Paragraph one of this Section, the following shall be included therein:

1) the rules regarding the time period of the agreement;

2) [6 November 2008];

3) the rules for organising of public transport services within the relevant route network (route);

4) the rules regarding the amount of financial resources allocated by the local government budget and the special budget of a local government to public transport services within the relevant route network (route) and the procedures for the submission of reports regarding utilisation of financing;

5) the rules regarding the procedures for amending and termination of the agreement;

6) the rules regarding the control of the agreement implementation;

7) the rules regarding the responsibility as regards the implementation of the agreement; and

8) other rules arising from organising of public transport services within the route network (route) and mutual committments between parties.

(4) A local government of a republic city and a planning region shall, within 15 days after entering into the agreement referred to in Paragraph one of this Section, submit one copy of the agreement to the Road Transport Administration.

(5) A local government of a republic city and a planning region shall each year review the compliance of the rules of the agreement with the planning documents of the State policy in the field of public transport and, if necessary, make the relevant amendments to the provisions of the agreement.

(6) If a regional route of local significance of a route network overruns the boundaries of a planning region, the boundaries of the regional route of local significance of the route network shall be determined by the Road Transport Administration upon co-ordination with the relevant local governments.

[6 November 2008]

Section 8. Order of Public Transport Services

(1) An ordering party shall grant the right to provide public transport services within a route network, route or voyage.

(2) The ordering party shall organise the order of public transport services in accordance with the Public Procurement Law or the law, which regulates the granting of concessions insofar it is not specified otherwise in this Law.

(3) The ordering party, which has established a capital company for the provision of public transport services, in which all capital shares or voting stock is owned by the relevant ordering party, may grant the right to provide public transport services to this capital company without taking into account the order procedures of public transport services referred to in Paragraph one of this Section.

(4) A capital company, which has been granted the right to provide public transport services in accordance with Paragraph three of this Section, has no right to participate in order procedures of public transport services organised by other ordering parties.

(5) One carrier in a regional route network of local significance and regional route network of inter-urban significance may service not more than 40 per cent of this network in total, except cases when carriage by railway tracks is performed.If the carrier has entered into an order contract regarding public transport services in accordance with the contract awarding procedure, the contracting party shall provide public transport services for not less than 50 per cent of the number of routes.

(6) In organising an order of public transport services in accordance with Paragraph two of this Section, carriers may submit a joint offer of public transport services.

(7) The right to provide public transport services within a route network, route or voyage shall be granted and a public transport order contract shall be entered into:

1) for the provision of public transport services by railway tracks – for 15 years, but, if the carrier involves completely new transport vehicles in the provision of public transport services – for a time period up to 22.5 years; or

2) for the provision of public transport services by buses – for 8 years, but, if the carrier involves completely new transport vehicles in the provision of public transport services – for a time period up to 12 years.

(8) In entering into an order contract of public transport services, the fulfilment of which involves several types of public transport services, the right of provision of public transport services may be granted for the time period specified in Paragraph seven, Clause 1 of this Section, if at least 50 per cent of the value of the contract is formed by public transport services, which are provided by railway tracks.

(9) Public transport services may be provided by a carrier, which has received a special permit (licence) of a performer of carriage of passengers in accordance with the procedures specified in regulatory enactments.

(10) The ordering party may, taking into account the demand for public transport services, increase or decrease the amount of the right for the provision of public transport services granted to the carrier within the framework of an order contract of public transport services entered into.

(11) Contestation or appeal of a decision regarding granting of the right for the provision of public transport services shall not suspend the operation thereof.This provision shall not apply to cases when the Public Procurement Law is applied.

[6 November 2008]

Section 9. Order of Public Transport Services

[6 November 2008]

Chapter IV

Financing of the Carriage of Passengers

Section 10. Financing Amount of the Carriage of Passengers

(1) Losses and expenditures caused to the carrier, which are related to the provision of public transport services, shall be reimbursed in compliance with the requirements specified in Sections 11 and 12 of this Law.

(2) [6 November 2008]

(3) Within the meaning of this Law a fee for services shall also be deemed losses, if the ordering party has organised an order of public transport services in accordance with the Public Procurement Law.