On State property

Updated Unofficial translation

Law of the Republic of Kazakhstan dated 1 March 2011 No. 413-IV.

      Unofficial translation

      This Law determines legal regime of state property, legal basis of management of state property, including property that is attached to legal entities and owned by the state shares and stakes of participating in the charter capital of legal entities, legal foundations of acquisition and termination of rights on state property and directed to secure effective realization by the state of rights of owner and possessor of other rights on state property.

SECTION 1.BASIC PROVISIONS ON STATE PROPERTY.
Chapter 1.GENERAL PROVISIONS ON MANAGEMENT OF STATE PROPERTY.

Article 1. Basic definitions, used in this Law

      The following basic definitions shall be used in this Law:

      1) District communal legal entity- district state enterprises and district state institutions, created by local executive bodies of districts, cities of regional status;

      2) District communal property- property of a district, city of regional status including budget of a district, city of regional status and other property not attached to district communal legal entities, as well as a property attached to district communal legal entities;

      Note of RCLI!
      Article 1 is supplemented by Subparagraph 2-1) from 01.01.2018 for cities of regional significance, villages, townships, rural districts with a population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated July 11, 2017 No. 90-VI (for cities of regional significance, villages, townships, rural districts with a population of two thousand and less people, shall be enforced from 01.01.2020).

      2-1) communal property of a city of district significance, village, township, rural district (hereinafter - communal property of local self-government) - property of a city of district significance, village, township, rural district, including the funds of the budget of a city of district significance, village, township, rural district, as well as property assigned and (or) not assigned to communal legal entities of local self-government;

      Note of RCLI!
      Subparagraph 2-2) shall be provided in the wording of the Law of the Republic of Kazakhstan dated 26.12.2018 No. 202-VI (shall be enforced from 01.01.2020).

      2-2) social and entrepreneurial corporation - a regional development institution in the form of a joint-stock company, established by decision of local executive authorities of regions, cities of republican significance, the capital, the controlling stake of which shall be owned by the state, promoting the development of the regional economy;

      Note of RCLI!
      Article 1 shall be provided to supplement by Subparagraph 2-3) in accordance with the Law of the Republic of Kazakhstan dated 26.12.2018 No. 202-VI (shall be enforced from 01.01.2020).

      2-4) an independent member of the supervisory board - a member of the supervisory board who shall not be affiliated person with this state enterprise on the basis of economic management and has not been a member of it during three years prior to his election to the supervisory board shall not be affiliated person with affiliated persons of this state enterprise; shall not be connected by subordination with officials of this state enterprise on the right of economic management or organizations affiliated persons with this state enterprise and was not connected by subordination with these persons during the three years preceding his election to the supervisory board; shall not be a public servant; does not participate in the audit of this state enterprise as an auditor working as part of an audit organization, and did not participate in such an audit within the three years preceding his election to the supervisory board;

      3) Development plan- a document determinative basic directions of an activity and showings of financial and operational activities of state enterprises, joint stock companies and limited liability partnerships that control block of stocks (stake of participating in a charter capital) that belong to the state, including national managing holding, national holding and national companies for the 5 year’s period of time;

      4) Development strategy- a document, determinative and justifying mission, apparition, strategic goals and tasks of national managing holding, national company for the 10 year’s period of time;

      5) Accounting item - a state property, reportable in register of state property;

      6) Privatization- sale by the state of state property to individuals, non-state legal entities within special procedures, established by this Law, with the exception of the sale of state property to the State Islamic Special Financial Company;

      Note of RCLI!
      Article 1 is supplemented by Subparagraph 6-1) from 01.01.2018 for cities of regional significance, villages, townships, rural districts with a population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 No. 90-VI (for cities of regional significance, villages, townships, rural districts with a population of two thousand and less people, shall be enforced from 01.01.2020).

      6-1) communal legal entities of local self-government - communal state-owned enterprises and communal state institutions, which property is in communal ownership of a city of district significance, village, township, rural district (communal ownership of local self-government);

      7) Communal legal entities- communal state enterprises and communal state institutions, a property of that belong to communal ownership;

      8) Communal property- a property of an administrative-territorial unit;

      8-1) corporate management - a set of processes ensuring management of the activity of state enterprises and legal entities with state participation and including relations between the owner (shareholder), supervisory board (board of directors), executive authority (board), other authorities of state enterprises and legal entities with state participation and interested parties in the interests of the owner (shareholder);

      9) Priority right of the Republic of Kazakhstan to acquisition of strategic objective - priority right of the Republic of Kazakhstan prior to the third parties to redemption of strategic objective according to market price from individual or non-state legal entity that owns a strategic objective in case of such person’s intention to make transaction on alienation of strategic objective, as well as in case of execution upon strategic objective or alienation of strategic objective to rehabilitation or bankruptcy manager in the composition of property, or sale of pledged property (strategic objective) by pledge without legal proceedings, or execution upon strategic objective on the basis of a court act;

      10) Public enterprise - a profit organization vested by the state with property on a basis of operational management;

      11) State needs- a need on transition of a privately owned property to state property to meet state interests arisen from functions of the state and pursued socially significant goals;

      12) Nationalization- compulsory gratuitous alienation of property belonged to individuals and to non-state legal entities to composition of a property of the Republic of Kazakhstan performed on a basis of the Law of the Republic of Kazakhstan;

      13) an authorized body on management of a relevant branch (sphere) of public administration (hereinafter – an authorized body of a relevant branch) – central executive body or department of a central executive body, determined by the Government of the Republic of Kazakhstan, performing management of a relevant branch (sphere) of public administration and having rights concerning the republican property on conditions, provided for by this Law and other laws of the Republic of Kazakhstan. In cases of transferring the rights concerning the republican property by the Government of the Republic of Kazakhstan to other state bodies, the rules of this Law on the authorized body of a relevant branch shall extend to such state body;

      14) State legal entities – state enterprises and state institutions;

      15) State institution – non-profit organizations created by the state and being funded through a budget or budget (cost estimate) of the National Bank of the Republic of Kazakhstan if additional sources of financing are not determined by the laws of the Republic of Kazakhstan for performing managing, socio-cultural and other non-profit functions;

      16) The right of operational management of state institution or public enterprise (hereinafter—the right of operational management) – corporeal rights of state institutions or public enterprise that received a property from the state as from an owner and performing within the powers, determined by the Civil Code of the Republic of Kazakhstan, this Law and other laws of the Republic of Kazakhstan in accordance with charter purposes of their activity, tasks of authorized bodies and appointment of ownership to a property, the rights of possession, use and dispose of this property;

      16-1) commission on privatization issues of objects of state property - a collegial body, created by the authorized body for state property management or by a local executive body for preparation and conduct of privatization biddings, provided for by this Law;

      17) State property- republican property and communal property;

      18) Managing a state property- performing by the state (by the Republic of Kazakhstan or an administrative-territorial unit) of rights to state property and other property rights;

      19) Authorized body on managing a state property (hereinafter—authorized body on the state property) – central executive body within limits of its competence performing a managing in scope of managing a republican property, realization of rights of state to republican property, privatizing and state monitoring of a property in scope of economics, having strategic value and strategic objective, except properties that is allocated to the National Bank of the Republic of Kazakhstan;

      20) Accounting of state property – an ordered collection system and information collation on registration objects for forming a register of state property in accordance with the rules provided in chapter 15 of this Law;

      21) Unified operator in field of registration of state property – legal entity with state participation in authorized capital, defined in a decision of the Government of the Republic of Kazakhstan that is entrusted with tasks for implementation of a unified technical policy in field of organization and registration of state property, as well as the functions for managing and operating the assets of the territorial divisions of the authorized agency for state property in accordance with the list approved by the authorized agency for state property;

      22) state property register - a unified information automated system for registration of state property, except for the property, being under the operational management of special state bodies, the Armed Forces, other troops and military units of the Republic of Kazakhstan, and state material reserve.

      23) Property rights of the state –rights of state to property including:

      a right to state property;

      other corporeal rights of the state (servitude, lease, gratuitous use of property, and others);

      obligatory rights (rights to claim) of the state;

      exclusive rights to objects of intellectual property belonged to the state;

      inheritance law;

      other property rights of state provided for by the laws of the Republic of Kazakhstan;

      24) Conflict of interests – a situation of arising contradiction between a personal interest of a member of a supervisory board and proper discharge of their official duties or legal interests of individuals and legal entities, the state that may lead to harmful consequences of these legitimate interests;

      25) Expropriation of property for state needs – seizure of belonged to individuals or non-state legal entities land plot or other moveable property in connection with a seizure of land plot to composition of state property, requisition, nationalization, produced for state needs in exceptional cases established by the laws of the Republic of Kazakhstan, and subject to fair compensation;

      26) Regional communal legal entities – regional state enterprises and regional state institutions created by local executive bodies of regions, cities of republican significance, capital;

      27) Regional communal property – property of a region, cities of republican significance, capital including regional budget and other property not allocated to regional communal legal entities and also a property allocated to regional communal legal entities, except district communal property;

      28) Requisition – seizure of property defined in a decision of the state agencies from an owner in behalf of society in cases of natural calamities, accidents, epizootic epidemics, in period of martial or under any other circumstances that have an extraordinary nature with payment to an owner of cost of a property;

      29) Republican legal entities – republican state enterprises and republican state institutions whose property belong to the republican property;

      30) Republican property – property of the Republic of Kazakhstan except a communal property;

      Note of RCLI!
      Article 1 shall be provided to supplement by Subparagraphs 30-1), 30-2), 30-3), 30-4), 30-5) and 30-6) in accordance with the Law of the Republic of Kazakhstan dated 26.12.2018 No. 202-VI (shall be enforced from 01.01.2020).

      31) Strategic objective – property having socio-economic importance for sustainable development of Kazakhstani society, possession and (or) use and (or) dispose of that shall influence on situation of national security of the Republic of Kazakhstan;

      32) National managing holding – joint stock companies a founder and the only equity holder of that is the Republic of Kazakhstan represented by the Government of The Republic of Kazakhstan created for effective managing of shares (stakes of participating in the charter capital) of national institutions of development, national companies and other legal entities;

      33) National institutions of development - financial, consulting, innovation, service organizations created by a decision of the Government of the Republic of Kazakhstan in a legal form of joint stock companies the main purpose of that is implementation of projects in a field of industrial-innovative development and support of entrepreneurship;

      34) National company - created by a decision of the Government of the Republic of Kazakhstan a joint stock company, controlling stake of that is owned by the state, national managing holding or national holding and carrying out activities in fields of constituting a foundation of national economy;

      35) National holding - joint stock company a founder and the only shareholder of that is the Republic of Kazakhstan represented by the Government of the Republic of Kazakhstan created for effective managing of shares of national company and other joint stock companies and stakes of participating in charter capital of limited liability partnerships unless otherwise provided for by the Laws of the Republic of Kazakhstan;

      36) Right of economic management – corporeal rights of state enterprise on right of economic management that has received a property from the state as owner and carrying out within the limits provided for by Civil Code of the Republic of Kazakhstan, this Law and other laws of the Republic of Kazakhstan, right to possession, use and dispose of this property;

      37) State enterprise on a right of economic management – profit organization allot by the state with property on rights of economic management and responsible for its obligations with all property belonging to it;

      37-1) affiliated persons of a state enterprise on the right of economic management - individuals or legal entities (with the exception of state agencies exercising control and supervisory functions within the powers granted to them), who shall be able directly and (or) indirectly make decisions and (or) provide influence on the decisions made by each other (one of the parties), including due to the concluded deal.

      Footnote. Article 1 as amended by the Law of the Republic of Kazakhstan dated 13.02.2012 No.553-IV (shall be enforced upon expiry of ten calendar days after its first official publication); 07.03.2014 No.177-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 04.12.2015№ 435-V(shall be enforced from 01.01.2016); dated 13.06.2017 № 69-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 11.07.2017 № 90-VI (for the procedure of enforcement see subparagraph 1) of paragraph 1 of Art. 2); dated 24.05.2018 No. 156-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 28.12.2018 No. 208-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 02.04.2019 No. 241-VІ (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 2. Types of state property

      1. A state property shall be recognized in a form of republican property and communal property.

      2. A republican property shall consist of:

      1) a state treasury:

      funds of the republican budget and the National Fund of the Republic of Kazakhstan;

      other state property that is not allocated to republican legal entities;

      2) property that is allocated to state republican legal entities.

      3. A communal property shall consist of:

      1) a local treasury:

      resources of local budget;

      any other communal properties that are not allocated to communal legal entities;

      2) property, allocated communal legal entities.

Article 3. Legislation of the Republic of Kazakhstan on state property

      1. Legislation of the Republic of Kazakhstan on state property shall be based on the Constitution of the Republic of Kazakhstan and consists of this Law, and other regulatory legal acts of the Republic of Kazakhstan.

      A legal regime of the state property is provided for by the Civil Code of the Republic of Kazakhstan, this Law and other laws of the Republic of Kazakhstan.

      2. Republican property may be located outside of the Republic of Kazakhstan, communal property located outside of an administrative-territorial unit or the Republic of Kazakhstan in accordance with international treaties of the Republic of Kazakhstan, a decision of the Government of the Republic of Kazakhstan, and any other grounds within the limits provided for by the Civil Code of the Republic of Kazakhstan and other laws of the Republic of Kazakhstan.

      3. A legal regime of state property of the Republic of Kazakhstan located outside the Republic of Kazakhstan shall be defined by the legislation of foreign country where this property may be located, unless it is otherwise provide for by an international treaty ratified by the Republic of Kazakhstan or other laws of the Republic of Kazakhstan.

      4. If an international treaty ratified by the Republic of Kazakhstan establishes different rules than those contained in this Law, the rules of an indicated treaty shall be applied.

Article 4. Subject of regulation of this Law

      1. This Law shall define rights and obligations of the state in a scope of managing a state property, establish an order of exercising property rights of the state, including possession, use and dispose of this property belonged to the state on basis of ownership, order of acquisition and termination of right to state property including nationalization and privatization of property, and also possession and (or) use the property by individuals or non-state legal entities.

      2. This Law shall establish an order of managing a property attached to state legal entities, shares of joint stock companies and stakes of participating in charter capital of limited liability partnerships, owned by the state and other state property.

      3. Particularities of legal regime of strategic objectives shall be defined by the Civil Code of the Republic of Kazakhstan, this Law and other laws of the Republic of Kazakhstan.

      3-1. The specifics of exercise of the rights by the state to dispose of unused property shall be established by the Law of the Republic of Kazakhstan “On defense industry and state defense order”, with the exception of other rights established by this Law.

      4. An exercise of rights to funds of the republican budget and the National Fund of the Republic of Kazakhstan shall be regulated by the Budget Code of the Republic of Kazakhstan. Definition of state property that is provided for by this Law shall apply to use in the Budget Code of the Republic of Kazakhstan definition of state properties with peculiarities provided for by the Budget Code of the Republic of Kazakhstan.

      Special considerations on exercising by the state of rights to other property referred to state treasury or local treasury shall be established by the laws of the Republic of Kazakhstan.

      5. An exercise by the state of right to historical and cultural monuments, cultural values shall be regulated by the Civil Code of the Republic of Kazakhstan, this Law and other laws of the Republic of Kazakhstan.

      6. An exercise by the state of exclusive right on intellectual property shall be regulated by the Civil Code of the Republic of Kazakhstan, this Law and other laws of the Republic of Kazakhstan.

      7. Provisions of this Law on national managing holding, national holding, national companies and other legal entities of controlled by the state or national managing holdings legal entities shall be applied to the Sovereign Wealth Fund and group of the Sovereign Wealth Fund, and to other legal entities controlled by it, unless otherwise provided for by Law of the Republic of Kazakhstan "On Sovereign Wealth Fund".

      8. The National bank of the Republic of Kazakhstan on behalf of the Republic of Kazakhstan shall independently exercise rights of possession, use and disposal of allocated to him property that is on his balance, and managing a property created by the legal entities of the National Bank of the Republic of Kazakhstan, also regulation of their activity.

      Footnote. Article 4 as amended by the Law of the Republic of Kazakhstan dated 18.03.2019 No. 237-VI (shall be enforced upon expiry of twenty one calendar days after its first official publication).

Article 5. Scope of application of this Law

      An enforcement of this Law shall apply to:

      1) State property located in the territory of the Republic of Kazakhstan;

      Note of RCLI!
      This wording of Subparagraph 2) with effect from 01.01.2018 for cities of regional significance, villages, townships, rural districts with a population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 No. 90-VI (current version until 01.01.2020 for cities of regional significance, villages, townships, rural districts with a population of two thousand and less people, see the archival version dated 25.12.2017 of the Law of the Republic of Kazakhstan "On State Property" dated 01.03.2011 No. 413-IV).

      2) state bodies, local executive bodies and bodies of local self-government, performing management of state property, state legal entities, and also, in cases, provided for by them - to individuals and non-state legal entities;

      3) Relations on managing a communal property of city of republican significance, capital, state property of special economic zone or industrial zone by state material reserve, taking into account the peculiarities established by the Laws of the Republic of Kazakhstan “On special status of Almaty city”, “On status of the capital of the Republic of Kazakhstan”, “On special economic zones and industrial zones”, “On civil protection".

      Footnote. Article 5 as amended by the Law of the Republic of Kazakhstan dated 11.04.2014 No. 189-V (shall be enforced upon expiry of ten calendar days after the date of its first official publication); dated 11.07.2017 № 90-VI (for the procedure of enforcement, see subparagraph 1) of paragraph 1 of Art. 2); dated 03.04.2019 No. 243-VІ (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 6. Principles of managing a state property

      Managing a state property shall be carried out in accordance with the following principles:

      1) legality;

      2) accountability and controllability;

      3) publicity;

      4) effective use of state property for benefit of society;

      5) providing conditions for competition development.

Article 7. Subjects of managing a state property

      1. Depending on type of state property managing a state property shall be carried out by the Republic of Kazakhstan or an administrative-territorial unit.

      2. The Government of the Republic of Kazakhstan on behalf of the Republic of Kazakhstan shall organize managing a state property and administer republican property.

      Note of RCLI!
      This wording of Paragraph 3 with effect from 01.01.2018 for cities of regional significance, villages, townships, rural districts with a population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 No. 90-VI (current version until 01.01.2020 for cities of regional significance, villages, townships, rural districts with a population of two thousand and less people, see the archival version dated 25.12.2017 of the Law of the Republic of Kazakhstan "On State Property" dated 01.03.2011 No. 413-IV).

      3. On behalf of an administrative-territorial unit of the region, the city of republican significance, the capital city, the district, the city of regional significance, the management of communal property shall be carried out by local executive body.

      Note of RCLI!
      Article 7 is supplemented by Paragraph 4 from 01.01.2018 for cities of regional significance, villages, townships, rural districts with a population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 No. 90-VI (for cities of regional significance, villages, townships, rural districts with a population of two thousand and less people, shall be enforced from 01.01.2020).

      4. On behalf of an administrative-territorial unit of the city of district significance, village, township, rural district, the management of communal property of local self-government shall be carried out by the Akim’s administration of the city of district significance, village, township, rural district in accordance with the competence, established by Article 18-1 of this Law.

      Footnote. Article 7 as amended by the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (for the procedure of enforcement see subparagraph.1) of paragraph 1 of Art. 2).

Article 8.Managing a state property

      1. On managing republican property the Government of the Republic of Kazakhstan shall organize cooperation of state bodies of the Republic of Kazakhstan on their exercising of rights of the Republic of Kazakhstan on republican property within bounds of their authority established by chapter 2 of this Law and other laws of the Republic of Kazakhstan, rules and other acts determining status of these state bodies.

      Note of RCLI!
      This wording of part one of Paragraph 2 with effect from 01.01.2018 for cities of regional significance, villages, townships, rural districts with a population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 No. 90-VI (current version until 01.01.2020 for cities of regional significance, villages, townships, rural districts with a population of two thousand and less people, see the archival version dated 25.12.2017 of the Law of the Republic of Kazakhstan "On State Property" dated 01.03.2011 No. 413-IV).

      2. On managing communal property, local executive bodies, in accordance with the legislation of the Republic of Kazakhstan, shall organize cooperation of local executive bodies and local self-government bodies on their exercising of rights to communal property within their competence, established by Chapter 2 of this Law and other laws of the Republic of Kazakhstan, provisions and other acts, determining the status of these state bodies.

      Authority of the Government of the Republic of Kazakhstan concerning communal property shall be defined by Article 11 of this Law and other legislation of the Republic of Kazakhstan.

      3. Control over the safety of the republican and communal property shall be carried out by state audit and financial control bodies in accordance with the Law of the Republic of Kazakhstan "On state audit and financial control".

      4. State property may be attached to state legal entities on economic management or operational management.

      5. The state (the Republic of Kazakhstan or an administrative-territorial unit) may be a founder (shareholder, participant) of joint stock companies, limited liability partnerships and state legal entities.

      For acting of state on behalf of legal entities of the Republic of Kazakhstan that are commercial organizations as a founder (participant, investor, member) shall not be permitted in any organizational and legal form.

      6. The state (the Republic of Kazakhstan or an administrative-territorial unit) may be a founder (shareholder, participant) of national fund that is non-profit organization. Creating and activity of national fund and also of non-profit organizations in any organizational and legal form with participation of the state shall be regulated by the laws of the Republic of Kazakhstan.

      Footnote. Article 8 as amended by the laws of the Republic of Kazakhstan dated 12.11.2015 № 393-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 11.07.2017 № 90-VI (for the procedure of enforcement see subparagraph.1) of paragraph 1 of Art. 2).

Article 9.Transfer of state property from one type of state ownership to another

      1. Transfer of state property from one type of state ownership to communal property or vice versa shall not entail a termination of rights of the state to property, but shall be basis for termination of rights of the Republic of Kazakhstan to republican property and acquisition of rights to communal property by an administrative-territorial unit, or termination of rights of administrative-territorial unit to communal property and acquisition of rights to republican property by the Republic of Kazakhstan.

      2. Transfer of state property that is allocated to legal entities from one type of state ownership to another shall be carried out according to the procedure provided for by the Government of the Republic of Kazakhstan.

      Note of the RCLI!
      This version of title of Article 10 is valid from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (the current version until 01.01.2020 for the cities of district significance, villages, townships, rural districts with population of two thousand or less people see archive version dated 25.12.2017 of the Law “On state property” dated 01.03.2011 № 413-IV).

Article 10. Transfer of communal property from one level of local government and self-government to another one

      Note of the RCLI!
      This version of part one of paragraph 1 is valid from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (the current version until 01.01.2020 for the cities of district significance, villages, townships, rural districts with population of two thousand or less people see the archive version dated 25.12.2017 of the Law “On state property” dated 01.03.2011 № 413-IV).

      1. Communal property shall be divided according to the level of local government and self-government into regional communal property, district communal property and communal property of local self-government.

      District communal property shall include a property that entered state property on grounds provided for by the Articles 23, 24, 26, 30, 31, and 32 of this Law.

      A level of local state government by communal property of city of republican significance, capital shall be equated to a level of local state government of regional communal property. In city of republican significance, capital shall not be created or allocated district level of local state government of communal property. Provided for by this Law authority of district’s local executive bodies on managing a communal property shall be carried out by local executive bodies of city of republican significance, capital, unless otherwise provided for by laws of the Republic of Kazakhstan.

      A level of local state government by communal property of city regional significance shall be equated to a level of local state government of district’s communal property.

      Note of the RCLI!
      Article 10 is supplemented with paragraph 1-1 from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 07.11.2017 № 90-VI (for the cities of district significance, villages, townships, rural districts with a population of two thousand or less people shall be enforced from 01.01.2020).

      1-1. Transfer of district communal property to the communal property of local self-government or vice versa shall not entail termination of the rights of the state to the property, but shall be the reason for termination of the rights of an administrative-territorial unit of the district (the city of regional significance) to the district communal property and acquisition of the rights by an administrative-territorial unit of the city of district significance, village, township, rural district to the communal property of local self-government or termination of the rights of an administrative-territorial unit of the city of district significance, village or township, rural district to the communal property of local self-government and acquisition of the rights by an administrative-territorial unit of the district (the city of regional significance) to district communal property.

      2. Transfer of state property from one level of local state government of communal property to another shall be carried out by a decision of local executive body of a region.

      Note of the RCLI!
      This version of passage 1 of paragraph 3 is valid from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (the current version until 01.01.2020 for the cities of district significance, villages, townships, rural districts with population of two thousand or less people see the archive version dated 25.12.2017 of the Law “On state property” dated 01.03.2011 № 413-IV).

      3. Transfer of the state property, assigned to communal legal entities, from one level of local government and self-government by communal property to another one shall be carried out in the following order:

      1) property complexes of regional communal legal entities, shares of joint stock companies and stakes of participating in charter capital of limited liability partnerships relating to a regional communal property shall be transferred to a level of district communal property on a decision of local executive bodies of region on the basis of request of local executive bodies of district, cities of regional significance;

      2) property of the regional communal legal entities shall be transferred to the level of district communal property on the basis of request of local executive bodies of district, cities of regional significance, on the basis of a decision of local executive bodies of a region;

      3) property complexes of district communal legal entities, shares of joint stock companies and stakes of participating in the charter capital of limited liability partnerships relating to district’s level of communal property shall be transferred to a regional level of communal property on basis of decisions of the local executive bodies of district, cities of regional significance and decision of local executive bodies of a region;

      4) property of regional communal legal entities shall be transferred to a level of regional communal property on the basis of decisions of local executive bodies of district’s, cities of regional significance and decision of local executive bodies of a region;

      Note of the RCLI!
      Paragraph 3 is supplemented by subparagraph 5) from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (for the cities of district significance, villages, townships, rural districts with population of two thousand or less people shall be enforced from 01.01.2020).

      5) property complexes of district communal legal entities, relating to the district level of communal property shall be transferred to the level of communal property of local self-government by the decision of the local executive body of the district (the city of regional significance) on the basis of a petition of the Akim's administration of the city of district significance, village, township, rural district (on agreement with the local community meeting);

      Note of the RCLI!
      Paragraph 3 is supplemented by sub-paragraph 6) from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 07.11.2017 № 90-VI (for the cities of district significance, villages, townships, rural districts with population of two thousand or less people shall be enforced from 01.01.2020).

      6) the property of district communal legal entities shall be transferred to the level of communal property of local self-government on the basis of a petition of the Akim's administration of the city of district significance, village, township, rural district (on agreement with the local community meeting) by the decision of the local executive body of the district (the city of regional significance);

      Note of the RCLI!
      Paragraph 3 is supplemented by sub-paragraph 7) from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 07.07.2017 № 90-VI (for the cities of district significance, villages, townships, rural districts with population of two thousand or less people shall be enforced from 01.01.2020).

      7) property complexes of communal legal entities of local self-government, relating to the level of communal property of local self-government shall be transferred to the district level of communal property on the basis of the decisions of the Akim’s administration of the city of district significance, village, township, rural district (on agreement with the local community meeting) and local executive body of the district (the city of regional significance);

      Note of the RCLI!
      Paragraph 3 is supplemented by sub-paragraph 8) from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 07.1.2017 № 90-VI (for the cities of district significance, villages, townships, rural districts with population of two thousand or less people shall be enforced from 01.01.2020).

      8) the property of communal legal entities of local self-government shall be transferred to the level of district communal property on the basis of the decisions of the Akim's administration of the city of district significance, village, township, rural district (on agreement with the local community meeting) and local executive body of the district (the city of regional significance).

      Note of the RCLI!
      This version of part one of paragraph 4 is valid from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 07.11.2017 № 90-VI (the current version until 01.01.2020 for the cities of district significance, villages, townships, rural districts with population of two thousand or less people, see the archive version dated 25.12. 2017 of the Law of the Republic of Kazakhstan “On state property” dated 01.03.2011 № 413-IV).

      4. After making a decision on the transfer of state property from one level of local government and self-government to another communal property, a transfer act shall be registered within thirty days, signed by authorized officials of transferring and receiving parties and approved by the heads of local executive bodies of regions, districts, cities of regional significance, as well as the Akims’ administrations of the cities of district significance, villages, townships, rural districts.

      The transfer act shall be drawn up in four copies in the Kazakh and Russian languages, two copies for each of the parties involved in registration of the transfer act.

      Note of the RCLI!
      This version of paragraph 5 is valid from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 07.11.2017 № 90-VI (the current version until 01.01.2020 for the cities of district significance, villages, townships, rural districts with population of two thousand or less people, see the archive version dated 25.12. 2017 of the Law of the Republic of Kazakhstan “On state property” dated 01.03.2011 № 413-IV).

      5. The procedure, established by this Article shall apply to the transfer of communal property, not assigned to state legal entities from one level of local government and self-government to another, unless otherwise provided by the laws of the Republic of Kazakhstan.

      Footnote. Article 10 as amended by the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (for the procedure of enforcement see subparagraph 1)of paragraph 1 of Art. 2).

Chapter 2. THE AUTHORITY OF STATE BODIES ON MANAGING A STATE PROPERTY

Article 11. The authority of the Government of the Republic of Kazakhstan

      The Government of the Republic of Kazakhstan shall carry out:

      1) Enforcing policy on effective managing a state property;

      2) Publishing regulatory legal acts in field of managing a state property, within its competence;

      3) Organizing of managing a state property, working out and taking measures for its use, and protection right to state property;

      4) Taking decisions on creation, reorganization, change of title, liquidation of state legal entities, national managing holdings, national holdings, national companies, and also other joint stock companies and limited liability partnerships on respect of that the Republic of Kazakhstan acts as the only shareholder (participant);

      5) Taking decisions on issuing or refusal on issuing of permission to encumbrance of strategic objective by rights of third persons or their alienation;

      6) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      7) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      8) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);
      9) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 № 239-V(shall be enforced upon expiry of ten calendar days after its first official publications);
      9-1) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 № 239-V(shall be enforced upon expiry of ten calendar days after its first official publication);

      10) Adopting the decrees on beginning of expropriation of land plot or another immoveable property in connection with a seizure of land plot for state needs or termination of expropriation of land plot or another immovable property in connection with a seizure of land plot for state needs;

      11) take decision on privatization of organizations, that are subjects of natural monopoly or market entities, holding a dominant or monopolistic position on the market;

      12) Taking decision on transferring of state property to charter capital of limited liability partnership or payment of shares of joint stock organization;

      12-1) take decision on establishment of the state Islamic special financial company, on the issue of state Islamic securities, on the basis of which the sale of state property shall be carried out by the state Islamic special financial company with obligation of its repurchase, on replacement of the property, sold to the state Islamic special financial company, as well as on early redemption and (or) repayment of state Islamic securities in accordance with the terms of the issue of state Islamic securities;

      13) Taking decision on acquisition of shares of joint stock company and stakes of participating in charter capital of limited liability partnership to composition of state property;

      14) Exercising a right of the state as shareholder (participant) to participating in managing national management holdings, national holdings, national companies, other joint stock companies and limited liability partnerships with the participation of the state or vest with this rights authorized body on state property;

      15) take decisions on using material values of state material reserve for regulatory impact on market, assistance to refugees and humanitarian assistance;

      15-1) approve the standard list of the district communal property, transferred to the structure of communal property of local self-government;

      15-2) define the limits of certain types of administrative expenses of national management holdings (except for the National Welfare Fund), national holdings and national companies, the controlling stakes of which are owned by the state, as well as national companies, which are part of national management holdings (except for national companies, which are part of the National Welfare Fund group), national holdings and the mechanism for their monitoring. Limits of certain types of administrative expenses of the National Welfare Fund, as well as national companies that are part of the National Welfare Fund group, shall be approved in accordance with the Law of the Republic of Kazakhstan "On the National Welfare Fund";

      16) Other powers provided for by the Constitution of the Republic of Kazakhstan, this Law, and other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

      Footnote. Article 11 as amended by the Law of the Republic of Kazakhstan dated 10.07.2012 No.34-V (shall be enforced from the date of its official publication); dated 13.06.2013 No. 101-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 11.04.2014 No. 189-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 02.07.2014 № 225-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 № 239-V(shall be enforced upon expiry of ten calendar days after its first official publication); dated 24.11.2015 № 422-V(shall be enforced from 01.01.2016); dated 04.12.2015 № 435-V(shall be enforced from 01.01.2016); dated 11.07.2017 № 90-VI (shall be enforced upon expiry of ten calendar days after its first official publication); dated 18.03.2019 No. 237-VI (shall be enforced upon expiry of twenty one calendar days after its first official publication).

Article 12. The competence of the National Bank of the Republic of Kazakhstan

      The National Bank of the Republic of Kazakhstan shall:

      1) issue legal acts of individual application, regulating relations in the sphere of state property management, assigned to the National Bank of the Republic of Kazakhstan;

      2) manage a state property, that is attached to the National Bank of the Republic of Kazakhstan, protect right to state property;

      2-1) determine the procedure for developing and approving development plans for state-controlled joint-stock companies, limited liability partnerships which shareholder (participant, trustee) is the National Bank of the Republic of Kazakhstan, and state-owned enterprises, created by it, monitoring and evaluating their implementation, and reports on their execution;

      3) carry out alienation, transfer for usage the property, assigned to the National Bank of the Republic of Kazakhstan;

      4) take decision on creation, reorganization, changing of title and liquidation, alienation instituted public enterprises, joint stock companies and limited liability partnerships;

      4-1) carry out reorganization and liquidation of branches of the National Bank of the Republic of Kazakhstan by decision of the President of the Republic of Kazakhstan;

      5) act on behalf of the Republic of Kazakhstan as a founder of joint stock companies and limited liability partnerships, including contributing to implementation of the National Bank of the Republic of Kazakhstan of its functions and (or) that are part of an infrastructure of a financial market, exercise of right of state as a shareholder (participant) to participation in a management of joint stock companies and limited liability partnerships, also take decision on acquiring or alienation of shares (stakes of participating) of these joint stock companies and limited liability partnerships;

      6) exercise rights on behalf of the Republic of Kazakhstan of a subject to republican property law relating a property created by state enterprises;

      7) independently define an object and purposes of activity of state enterprises created by it, also types of state enterprises (on rights of economic management or operational management), prove their charter, introduction amendments and additions to it.

      8) give consent to the state enterprise, created by it for alienation or disposition in any other way, including the transfer for usage of the property, assigned to it (except for sale of the products, produced by it), creation of branches and representations, and also transfer and write-off of accounts receivable;

      8-1) carry out trust management of state property, transferred to it in trust management by the Government of the Republic of Kazakhstan, in the manner and on the terms provided for in the contract;

      9) consider and approve development plans of state enterprises it created and report on their activities and also is entitled to check their financial and economic activities;

      10) approve or set prices on goods (work, services) produced and realized by state enterprises it created;

      11) represent information about objects of state property to a register of state property;

      11-1) determine the procedure for distribution of net income of state-owned enterprises, created by it;

      12) carry out other powers, provided for by this Law, and other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan.

      Footnote. Article 12 as amended by the Law of the Republic of Kazakhstan dated 05.07.2012 No. 30-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 24.11.2015 № 422-V(shall be enforced from 01.01.2016); dated 06.04.2016 № 481-V(shall be enforced upon expiry of ten calendar days after its first official publication).

Article 13.The authority of a central authorized body on state planning

      On state planning central authorized body shall:

      1) form the state policy in the sphere of state property management, within its competence, develop, approve normative legal acts in the sphere of state property management;

      2) carry out analyzing and evaluation of managing a state property;

      3) develop jointly with the authorized body for state property management the procedure for:

      development, approval of development strategies and development plans of national management holdings, national holdings, national companies, the shareholder of which is the state, as well as monitoring and evaluation of their implementation;

      development and submission of reports on execution of development strategies and development plans of national management holdings, national holdings, national companies, the shareholder of which is the state;

      4) Require and acquire information that is necessary for a fair and objective analysis of managing a state property from state agencies, joint stock companies, limited liability partnerships with the participation of the state;

      4-1) determine the procedure for the development, approval of development plans for state-controlled joint-stock companies and limited liability companies, state-owned enterprises, as well as monitoring and evaluating their implementation, with the exception of joint-stock companies, limited-liability partnerships, which shareholder (participant, trust manager) is the National Bank of the Republic of Kazakhstan, and state enterprises, created by it;

      4-2) determine the procedure for the development and submission of reports on execution of development plans for state-controlled joint stock companies, limited liability partnerships and state enterprises, with the exception of joint stock companies, limited liability partnerships, which shareholder (participant, trust manager) is the National Bank of the Republic of Kazakhstan and state enterprises, created by it;

      4-3) determine the procedure for the development and submission of reports on execution of development strategies and development plans for national managing holdings, national holdings, national companies, which shareholder is the state;

      4-4) determine the procedure for the development, approval of development strategies and development plans for national managing holdings, national holdings, national companies, which shareholder is the state, as well as monitoring and evaluating their implementation;

      4-5) approve the pricing rules for goods (works, services), produced and sold by a state monopoly entity;

      4-6) develop the procedure for consideration of appeals of owners (right holders) of strategic objects, rehabilitation or bankruptcy managers on encumbrance or alienation of a strategic object;

      4-7) approve the Model Corporate Management Code in state-controlled Joint Stock Companies, with the exception of the National Wealth Fund;

      5) carry out other powers, provided for by this Law, and other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.

      Footnote. Article 13 as amended by the laws of the Republic of Kazakhstan dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 24.11.2015№ 422-V(shall be enforced from 01.01.2016); dated 04.12.2015№ 435-V(shall be enforced from 01.01.2016); dated 24.05.2018 No. 156-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 14. The authority of an authorized body on state property

      An authorized body on state property shall:

      1) develop, approve regulatory legal acts in scope of managing a state property within their competence;

      2) handle specific and effective use of republican property;

      3) carry out privatization of the republican property, also take decision on privatization of the republican property, as well as enterprises as a property complex that are not subjects of natural monopoly or market entities, holding a dominant or monopolistic position on the market, ensure the safety of the republican property in the process of preparing the object for privatization, involve an intermediary for organization of privatization process, provide an evaluation of the privatization object, carry out preparation and conclusion of contracts for the sale and purchase of the privatization object and control compliance with the terms of purchase and sale contracts;

      4) exercise rights on behalf of the Republic of Kazakhstan of a subject to republican property law relating to state legal entities;

      5) on the proposal of authorized bodies of relevant field, define a object and purposes of activity of republican state enterprise, as well as a type of republican state enterprise (on rights of economic management or public enterprise), carry out such activities, and approve charter of republican state enterprises, introduction of amendments and additions to it;

      6) upon agreement with an authorized body of relevant field carry out seizure or redistribution of a property transferred to republican legal entity or acquired as a result of its own economic activity;

      7) proceed with a removal of unnecessary, unused or used not for designated purpose of property of republican legal entities identified by results of the control of target use of state property at expiration of six months from the date of control without coordination with an authorized body of relevant field;

      8) set term of detention to republican state enterprise and secure of safekeeping of seized property until its transferring to another person, with a subsequent write-off from a balance;

      9) provide a republican property in property lease (rent), entrusted administration to individuals and non-state legal entities without right of subsequent redemption, with right to redemption or right of subsequent free transfer to an estate of subjects of small business;

      10) give consent to an authorized body of relevant field on reorganization and liquidation of the state legal entity;

      11) give consent to republican state enterprise on alienation, or dispose otherwise a property that is attached to it (except for sale of manufactured goods), establishment of branches and representative offices, as well as transfer and write-off of debtor indebtedness;

      12) represent interests of the state on republican property, carry out protection of property rights, that belong to the Republic of Kazakhstan;

      13) carry out review of the provision on property lease (rent) of the property, that is attached to the Republican legal entities;

      14) exercise control over modernity and completeness of distribution of dividends on shares and their payment that belong to the Republic of Kazakhstan, as well as for distribution of net income between participants of a limited liability partnership of that stakes of participating in charter capital belongs to the Republic of Kazakhstan;

      15) carry out state monitoring of property in fields of economics, that have strategic importance, in accordance with the Law of the Republic of Kazakhstan “On state monitoring of property in fields of economics of strategic importance”;

      16) carry out organization and implementation monitoring of functioning and effectiveness of management of republican state enterprises, joint stock companies and limited liability partnerships with participation of the Republic of Kazakhstan;

      17) carry out control over execution of Trustee obligations under a trust agreement over republican property;

      18) by decision of the Government of the Republic of Kazakhstan act as a founder of joint stock companies and limited liability partnerships, as well as republican state enterprises;

      19) by decision of the Government of the Republic of Kazakhstan carry out payment of distributed shares of joint stock companies and contribution in chapter capital of the limited liability partnerships by investing money in accordance with the Budget Code of the Republic of Kazakhstan and also republican property, including shares, participation interest in an authorized capital of stakes of participating in charter capital;

      20) on behalf of the Government of the Republic of Kazakhstan exercise rights of the state as a shareholder (participant) for participation in management of joint stock company (limited liability partnership);

      21) appoint its representative in a respective board of directors (supervisory board) of joint stock companies (limited liability partnerships) in that the only shareholder is the Republic of Kazakhstan, and in other joint stock companies and limited liability partnerships with participation of the Republic of Kazakhstan submit for approval a candidacy to boards of directors or supervisory board on a general meeting of shareholders or members of a limited liability partnerships;

      22) pay compensation for nationalized property in cases and on conditions, stipulated by Chapter 5 of this Law;

      23) develop rules of maintenance of register of state property;

      24) maintain a register of state property in order established by the Government of the Republic of Kazakhstan, and provide information to users of a register of state property;

      25) coordinate and organize work to secure an unified accounting of state property in a register of state property;

      26) hold a contest in accordance with the Law of the Republic of Kazakhstan "On public procurement" by definition of periodicals for publication of a notice on holding a tender on privatization of republican property;

      26-1) provide the territorial divisions of central state authorities, with the exception of the state material reserve and property under operational management, special state and law enforcement agencies, the Armed Forces of the Republic of Kazakhstan, other troops and military formations, with the property necessary to perform the assigned functions according to the list approved by the authorized agency on state property;

      26-2) transfer to trust management of a unified operator in the field of state property accounting, assets of territorial divisions of the authorized agency for state property in accordance with the list approved by the authorized agency for state property;

      26-3) provide financing for a unified operator in the field of state property accounting for management and maintenance of property of territorial divisions of the authorized agency for state property in accordance with the list approved by the authorized agency for state property;

      27) carry out other powers provided for by this Law, and other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.

      Footnote. Article 14 as amended by the Law of the Republic of Kazakhstan dated 04.12.2015№ 435-V(shall be enforced from 01.01.2016); dated 02.04.2019 No. 241-VІ (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 15. The authority of an authorized body of the relevant field

      An authorized body of the relevant field shall:

      1) implement state policy on managing a state property in relevant branch, within its competence prepare, approve regulatory legal acts in scope of managing a state property of a relevant branch;

      2) define priority orientations of activity and required volumes of works (services)financed from budget, republican state enterprises and in cases specified by laws of the Republic of Kazakhstan, of communal state enterprises;

      3) define an object and purposes of activity of the Republican state enterprise;

      4) make proposals to an authorized body on state property in defining of an object and purpose of activity of republican state enterprise, and also on determining a type of republican state enterprise (on rights of economic management or public enterprise), carry out such activities;

      5) examine, negotiate in cases established by this Law and approve development plans of republican public enterprises and reports on their execution;

      6)carry out control over safety of a property of republican legal entities and implementation of development plans of republican state enterprises;

      7) carry out control and analysis of implementation of development strategies and development plans of national management holdings, national holdings, national companies, a shareholder of that is the state, in a relevant field;

      8) carry out control and analysis of implementation of development plans of republican state enterprises, state-controlled joint stock companies and limited liability partnerships of relevant field;

      9) give consent to an authorized body on state property for seizure and redistribution of a property transferred to republican legal entity or acquired as a result of its own economic activity;

      10) carry out managing s republican legal entities;

      11) approve charter (regulations) of republican state institutions, introduction of amendments and additions to it;

      12) approve annual accounting statements of the Republican legal entity;

      13) set prices for goods (work, services), produced and sold by republican public enterprises;

      14) approve financial plans of republican state institutions from republican budget;

      15) give consent to republican state institutions for creation of branch offices and representational offices;

      16) in coordination with an authorized body on state property exercise reorganization and liquidation of republican legal entity;

      17) develop project of a decision of the Government of the Republic of Kazakhstan on implementation of a priority right to acquisition of strategic objective;

      18) in cases of it has been transferred a right of ownership and use of state stock of shares (stakes of participating in the charter capital) shall appoint its own representative of a respective board of directors (supervisory board) of joint stock companies (limited liability partnerships), in that the only shareholder (participant) is the state, and in other state’s participating joint stock companies and limited liability partnerships provide for approval a candidacy by general meeting of shareholders or members of a limited liability partnership to board of directors or supervisory boards;

      19) provide for or use reasonable efforts to integrate a representative of an authorized body on state property to a board of directors of joint stock company with participation of the state or to a supervisory board of a limited liability partnership with participation of the state;

      20) prepare information, including a full list of its managing state legal entities and legal entities with participation of the state in respect of that it shall exercise rights of state as a shareholder (participant) for participation in management, in order to reflect this information in a register of state property;

      21) carry out other powers provided for by this Law, and other laws of the Republic of Kazakhstan and acts of the President of the Republic of Kazakhstan and the Government of the Republic of Kazakhstan.

      Note of RCLI!
      Chapter 2 shall be provided to supplement by Article 15-1 in accordance with the Law of the Republic of Kazakhstan dated 26.12.2018 No. 202-VI (shall be enforced from 01.01.2020).

Article 16. The authority of local representative bodies of regions, cities of republican significance, capital, districts, cities of regional significance on managing a communal property

      Local representative bodies of regions, cities of republican significance, capital, districts, cities of regional significance shall:

      1) examine reports of heads of local executive bodies on issues of managing a communal property of a respective administrative-territorial unit;

      2) develop proposals and recommendations aimed at development of the communal property of a respective administrative-territorial unit;

      3) bring into accord drafts of contracts for redemption of a land plot or other real estate due to the fact of seizure of land plot for state needs.

      Footnote. Article 16 as amended by the Law of the Republic of Kazakhstan dated 21.01.2019 No. 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 17. The authority of local executive bodies of regions, cities of republican significance, capital

      Local executive bodies of regions, cities of republican significance, capital shall:

      1) develop and approve regulatory legal acts in scope of managing a regional communal property within limits of its competence;

      2) coordinate work of local executive bodies of districts, cities of regional significance on issues included in their competence in scope of managing a district’s state property;

      3) manage a regional communal property, carry out measures on its protection;

      4) take decision on privatization of the regional communal property, as well as enterprises as a property complex;

      5) hold competitive tenders in accordance with the Law of the Republic of Kazakhstan “On public procurement” by definition periodicals for publication of a notice on holding a tender on privatization of regional communal property;

      6) take decision on creation, reorganization and liquidation of regional communal legal entities, and also on participation in joint stock companies and limited liability partnerships, their creation, reorganization, liquidation, alienation of belonged to it shares of joint stock companies, stakes of participating in charter capital of limited liability partnerships;

      7) approve charter (provision) of regional legal entities, introduction of amendments and additions to it or authorize to it funded from the local budget executive body, that is authorized for disposal of regional communal property

      8) define priority areas of activity and required volumes of work (services) financed from budget of regional, state enterprises;

      9) consider, bring into accord in cases stipulated by this Law, and approve development plans of regional state enterprises and reports on their fulfillment;

      10) carry out control and analysis of implementation of development plans of regional state enterprises, state-controlled joint stock companies and limited liability partnerships;

      11) settle regional communal property on regional communal legal entities;

      12) give consent for establishment of branches and representations by regional communal legal entities;

      13) take decision on transfer of regional communal property, and also money in accordance with the Budget Code of the Republic of Kazakhstan to chapter capital of limited liability partnerships or in payment of shares of joint stock companies;

      14) decide on acquisition of shares of joint stock companies and stakes of participating in charter capital of limited liability partnerships for a composition of regional communal property;

      15) in cases and order that is established by Article 10 of this Law, shall decide on transferring of regional communal property on a level of communal property of a district, city of regional status;

      16) take a decision on impleading for alienation of monuments of history and culture from an owner;

      17) take decisions on using of regional communal property, including transferring for a pledge, lease, uncompensated use and entrusted administration;

      18) decide on requisition in extreme situations of natural and man-caused character on conditions established by chapter 4 of this Law;

      19) pay compensation for requisitioned property in cases and on conditions, stipulated by chapter 4 of this Law;

      20) pay compensation in case of alienation of land plot or other immovable property in connection with alienation of land plot for state needs on conditions established by chapter 6 of this Law;

      21) adopt decree on beginning of an expropriation of land plot or another immoveable property in connection with seizure of land plot for state needs or termination of expropriation for state needs;

      22) conclude a contract on alienation of a land plot or other immovable property due to the fact of seizure of a land plot for state needs (hereinafter referred to as - contract on alienation of a land plot for state needs);

      23) provide control over use and safety of regional communal property;

      24) organize record of regional communal property, secure its effective use;

      25) carry out privatization of the regional communal property, as well as enterprises as a property complex, also involve an intermediary for organization of privatization process, provide evaluation of the privatization object, carry out preparation and conclusion of contracts for the sale and purchase of the privatization object and control compliance with the terms of purchase and sale contracts;

      26) provide regional communal property to a property lease (rent), entrusted administration to individuals and non-state legal entities without a right of subsequent redemption, with a right of subsequent redemption or with a right of subsequent transfer of a property to ownership of subjects of small business without charge;

      27) control over implementation of Trustee obligations under an entrusted administration of regional communal property;

      28) exercise other powers obligated to them by this Law and another legislation of the Republic of Kazakhstan.

      Footnote. Article 17 as amended by the Law of the Republic of Kazakhstan dated 04.12.2015№ 435-V (shall be enforced from 01.01.2016); dated 21.01.2019 No. 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 18. The authority of local executive bodies of districts, cities of regional significance

      Local executive bodies of districts, cities of regional significance shall:

      1) develop, approve regulatory legal acts, regulating relations in scope of district communal property within its competence;

      2) manage district communal property, unless otherwise provided for by laws of the Republic of Kazakhstan, carry out measures for its protection;

      3) is excluded by the Law of the Republic of Kazakhstan dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication);

      4) take decision on privatization of the district communal property, as well as enterprises as a property complex;

      5) organize a competitive tender in accordance with the Law of the Republic of Kazakhstan "On public procurement" by definition periodicals for publication of a notice of holding a tender of privatization of district communal property;

      6) provide the district communal property in a property lease (rent), entrusted administration to individuals and non-state legal entities without a right of subsequent redemption, with a right of subsequent redemption or with a right of subsequent transfer to ownership of subjects of small business without charge, unless otherwise provided for by laws of the Republic of Kazakhstan;

      7) take decisions on establishment, reorganization and liquidation of district communal entities, as well as on participation in joint stock companies and limited liability partnerships, their creation, reorganization, liquidation, alienation of owned shares of joint stock companies, stakes of participating in charter capital of limited liability partnerships;

      8) approve a charter (provision) of district communal legal entities, introduce amendments and additions to it or authorize for that an executive body, funded from a local budget, authorized for arrangement of district communal property;

      9) define priorities and required volumes of works (services), funded from state budget, of communal state enterprises created by local executive bodies of regions, cities of regional status, unless otherwise provided for by laws of the Republic of Kazakhstan;

      10) provide control over use and safety of district communal property;

      11) consider, agree in cases stipulated by this Law, and approve development plans of communal state enterprises created by local executive bodies of regions, cities of regional status, and reports on their execution;

      12) carry out control and analysis of implementation of development plans of communal state enterprises created by local executive bodies of regions, cities of regional status, that are controlled by state joint stock companies and limited liability partnerships;

      13) settle district communal property on district communal entities;

      14) give consent to establishment by district communal entities of branches and representative offices;

      15) take decisions on transferring of district communal property and also money in accordance with the Budget Code of the Republic of Kazakhstan to charter capital of limited liability partnerships or in payment of shares of joint stock companies;

      16) take decisions about use of district communal property, including transferring of it for a pledge, property lease (rent), uncompensated use and entrusted administration, unless otherwise provided for by the laws of the Republic of Kazakhstan;

      17)take decisions on requisition in extreme situations of natural and man-caused character on conditions established by chapter 4 of this Law;

      18) pay compensation for requisitioned property in cases and on conditions, stipulated by chapter 4 of this Law;

      19) pay compensation in case of alienation of land plot or other immovable property in connection with alienation of land plot for state needs on conditions established by chapter 6 of this Law;

      20) take disposition on beginning of an expropriation of land plot or another immoveable property in connection with seizure of land plot for state needs or termination of an expropriation for state needs;

      21) conclude a contract on alienation of a land plot for state needs;

      22) organize registration, storage, evaluation and further use of district communal property, converted (received) to communal property, recognized in accordance with the legislation of the Republic of Kazakhstan, as ownerless, that has been transferred to the state by a right of inheritance, and escheated property, findings, unattended animals, gratuitously transferred in accordance with the legislation of the Republic of Kazakhstan, to communal ownership, a share of hidden treasures, not containing things related to cultural values;

      23) control over implementation of Trustee obligations under trust agreement of district communal property;

      24) carry out privatization of the district communal property, as well as enterprises as a property complex, also involve an intermediary for organization of privatization process, provide evaluation of the privatization object, carry out preparation and conclusion of sale and purchase contracts of the privatization object and control compliance with the terms of purchase and sale contracts;

      Note of the RCLI!
      Subparagraph 24-1) is excluded from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people by the Law of the Republic of Kazakhstan dated 07.07.2017 № 90-VI (for the procedure for enforcement see subparagraph 1) of paragraph 1 of Art. 2).
      Note of the RCLI!
      Subparagraph 24-1) is provided to exclude from 01.01.2020 for the cities of district significance, villages, townships, rural districts with population of two thousand and less people by the Law of the Republic of Kazakhstan dated 07.11.2017 № 90-VI (for the procedure of enforcement see subparagraph 1 ) of paragraph1 of Art. 2).

      24-1) in agreement with the local community meeting, take decision on alienation of the property, acquired at the expense of local self-government funds;

      25) exercise other powers obligated to them by this Law and another legislation of the Republic of Kazakhstan.

      Footnote. Article 18 as amended by the Law of the Republic of Kazakhstan dated 13.06.2013 No. 101-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 09.29.2014 № 239-V (shall be enforced upon the expiry of ten calendar days after its first official publication); dated 02.11.2015 № 387-V (shall be enforced upon the expiry of ten calendar days after its first official publication); dated 04.12.2015№ 435-V (shall be enforced from 01.01.2016); dated 11.07.2017 № 90-VI (for the procedure of enforcement, see subparagraph 1) of paragraph 1 of Art.2); dated 21.01.2019 No. 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication)
      Note of the RCLI!
      Chapter 2 is supplemented by Article 18-1 from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (for the cities of district significance, villages, townships, rural districts with population of two thousand or less people shall be enforced from 01.01.2020).

Article 18-1. Competence of the Akim's administration of the city of district significance, village, township, rural district

      1. The Akim's administration of the city of district significance, village, township, rural district in agreement with the local community meeting shall:

      1) develop the drafts of legal acts in the field of management of communal property of local self-government within its competence;

      2) manage the communal property of local self-government, unless otherwise provided by the laws of the Republic of Kazakhstan, carry out measures for its protection;

      3) take decision and carry out privatization of communal property of local self-government, also ensure its safety in the process of preparation the object for privatization, involve an intermediary for organization the privatization process, provide evaluation of the privatization object, carry out preparation and conclusion of contracts for the sale and purchase of the privatization object and control compliance with the terms of purchase and sale contracts;

      4) determine the subject and purpose of the activity of a communal state enterprise, which property is in the communal property of the city of district significance, village, township, rural district (communal property of local self-government), as well as the type of communal state enterprise (on the right of economic management or public enterprise), carrying out such activities;

      5) carry out the seizure or redistribution of property, transferred to a communal legal entity of local self-government or acquired by it as a result of its own economic activity;

      6) carry out the seizure of excessive, unused or used for other purposes property of communal legal entities of local self-government;

      7) provide communal property of local self-government in property rent (lease), trust management to individuals and non-state legal entities without the right of subsequent redemption or with the right of subsequent redemption;

      8) take decision on creation, reorganization, change of the name and liquidation of communal legal entities of local self-government in agreement with the Akim of the district (the city of regional significance);

      9) give consent to a communal state enterprise which property is in the communal property of the city of district significance, village, township, rural district (communal property of local self-government), for alienation or disposition in other way of property, assigned to it (except for the sale of products, produced by it), creation of branches and representative offices, as well as transfer and write-off of accounts receivable;

      10) approve the charter (regulations) of state legal entities of local self-government, making amendments and additions to it;

      11) determine priority directions of activity and mandatory amounts of works (services), financed from the budget, communal state-owned enterprises, which property is in the communal property of the city of district significance, village, township, rural district (communal property of local self-government);

      12) consider, coordinate in cases, provided for by this Law, and approve plans for the development of state enterprises, which property is in the communal property of the city of district significance, village, township, rural district (communal property of local self-government), and reports on their execution;

      13) take decisions on the use of communal property of local self-government, including its transfer in pledge, rent, gratuitous use and trust management;

      14) assign the communal property of local self-government to communal legal entities of local self-government;

      15) take decision on alienation of communal property of local self-government;

      16) exercise other powers, provided for by this Law and the legislation of the Republic of Kazakhstan.

      2. The Akim’s administration of the city of district significance, village, township, rural district shall:

      1) exercise control over the targeted and efficient use of communal property of local self-government;

      2) exercise the rights of the subject of the right of communal property in relation to communal legal entities of local self-government;

      3) establish to a communal state enterprise, which property is in the communal property of the city of district significance, village, township, rural district (communal property of local self-government), the period of maintenance and preservation of the seized property prior to its transfer to another person and subsequently writing off from the balance;

      4) represent the interests of the state on the issues of communal property of local self-government, protect the property rights of the city of district significance, village, township, rural district (communal property of local self-government);

      5) exercise control over the fulfillment of obligations by the Trustee under the contract of trust management of communal property of local self-government;

      6) carry out monitoring and analysis of implementation of development plans for communal state-owned enterprises, which property is in the communal property of the city of district significance, village, township, rural district (communal property of local self-government);

      7) organize accounting of communal property of local self-government, ensure its effective use;

      8) exercise other powers, provided for by this Law and the legislation of the Republic of Kazakhstan.

      Footnote. Chapter 2 is supplemented by Article 18-1 in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (for the procedure of enforcement, see subparagraph 1) of paragraph 1 of Art. 2).

SECTION 2.ACQUISITION BY THE STATE OF PROPERTY RIGHTS
Chapter 3.GROUNDS FOR THE ACQUISITION BY THE STATE OF PROPERTY RIGHTS

Article 19.The list of grounds for acquisition by the state of property rights

      1. Grounds for acquisition by the Republic of Kazakhstan of rights for republican property shall be recognized as follows:

      1) receipts to republican budget;

      2) acquisition of property by republican legal entities;

      3) appropriation;

      4) transfer of property to republican property from composition of communal property;

      5) acquisition and creation of property on bases of civil law contracts (buy and sell, labor contract and other treaties;

      6) realization of priority rights to acquire strategic objectives;

      7) seizure mismanaged monuments of history and culture, cultural values by court decision;

      8) acquisition of rights of state ownership for land plot of agricultural purposes, privately owned by re-registration of a right to it;

      9) inheritance, gift or other gratuitous transfer or any other gratuitous receipt (transfer) of property from non-state legal entities and individuals to composition of republican property;

      10) expropriation of property for state needs;

      11) return of executed by the Republic of Kazakhstan under an obligation before the date of termination or amendment of a treaty;

      12) return of property transferred under a contract that has been rendered ineffective;

      13) other grounds, provided for by laws of the Republic of Kazakhstan.

      2. Grounds for acquisition by an administrative-territorial unit of rights to communal property shall be recognized as follows:

      1) receipts to a local budget;

      2) acquisition of properties by communal legal entities;

      3) receipt to composition of communal property of ownerless property and confiscated property;

      4) transfer of property to composition of communal property from composition of republican property;

      5) acquisition and creation of property on basis of civil law contracts (buy and sell, labor contract and other contracts);

      6) acquisition of rights to unauthorized construction by a court decision;

      7) seizure of mismanaged monuments of history and culture, cultural values by a court decision;

      8) inheritance, transition of escheated property, gift or other gratuitous transfer or any other gratuitous receipt (transfer) of property of individuals and non-state legal entities to composition of communal property;

      9) expropriation of property for state needs;

      10) return of executed by an administrative-territorial unit under an obligation before the date of termination or amendment of a treaty;

      11) return of property transferred under a contract rendered ineffective;

      12) other grounds, provided for by laws of the Republic of Kazakhstan.

Article 20. The acquisition of rights to property related to a budget

      The acquisition of rights to property related to a budget shall be defined by the Budget Code of the Republic of Kazakhstan.

Article 21. The acquisition of property by state legal entities

      Acquisition of property by state legal entities as a result of production and economic activities, or on other grounds not prohibited by laws of the Republic of Kazakhstan shall be a ground for an acquisition by the state of rights to this property and its reference to state property.

Article 22. The receipt of forfeit to composition of state property

      The receipt of forfeit to composition of state property shall be carried out in order and on conditions defined by Articles 210-212, 214, 215 of this Law.

Article 23. The acquisition of state ownership right to ownerless immovable objects.

      1. Ownerless immovable objects shall be accepted for accounting by body executing state registration of rights to immovable property under a statement of relevant local executive bodies of cities of republican significance, capital, districts, cities of regional significance, of their identified territory. On expiry of one year from the date of setting of ownerless immovable objects on a registry a local executive body shall appeal to court with requirement about recognition of this thing to be received by a district communal property. In case if owner waive ownership by advertisements, a local executive body shall apply to a court with requirement about recognition of this thing to be received to a communal property since an announcement of refusal. A land plot is accepted for registry as ownerless immovable object on application of a relevant authorized body of city of republican significance, capital, region, city of regional significance on its identified territory, in accordance with the Land Code of the Republic of Kazakhstan.

      2. Ownerless immovable objects held by individuals or non-state legal entities that own such property as their own may not be recorded and transferred to the district communal property.

      3. At any time prior to creation of property right of another person to a property an owner shall have a right to file an application for striking off a register regarded as ownerless belonged to him immovable thing and accept it again to his own actual possession.

      4. Particularities of acquisition by state of rights to land plot, registered as ownerless immovable objects shall be established by the Land Code of the Republic of Kazakhstan.

      Footnote. Article 23 as amended by the Law of the Republic of Kazakhstan dated 22.07.2011 No.479-IV (shall be enforced upon expiry of ten calendar days after its first official publication)

Article 24.The acquisition of state ownership right on moveable things abandoned by owner

      1. Moveable things abandoned by owner or otherwise left by him with the purpose of abandonment of a right of ownership (left things), may be converted into state property in cases and according to procedure provided for by this Article.

      2. State legal entity, in that land-use located land plot, where left thing is, a cost of that is clearly less than twenty-fold monthly calculation index, effective on the date of detection of abandoned thing, or discarded scrap metal, defective products, shall turn these things into his economic management or operational management having come to their use or committing other actions evidencing outstanding things in economic management or operative management by beginning to use them or by performing any other acts that witness taking such items into ownerships.

      In case of detection of such property on lands under state ownership and that has not been transferred to land use, it shall go into a local treasury by a decision of local executive bodies of regions, cities of regional significance, in necessary cases by adoption of property to composition of district communal property.

      3. The main criteria on considering an issue on necessity of acceptance a property to composition of district communal property shall be regarded as follows:

      1) economic efficiency;

      2) nature of a property and use of a property after acceptance to composition of district’s communal property.

      4. In case of absence of necessity of acceptance of property to composition of district communal property a local executive body in the order established by this Article may accept a property to composition of district communal property for further implementation in accordance with Article 213 of this Law.

      5. Moveable thing left by owner, a cost of that is equal to and above from twenty-fold monthly calculation index, effective on the date of detection of abandoned things shall come in economic management or operational management of state legal entity that take ownership, or in case of its admission into possession of local executive bodies of regions, cities of regional status to composition of a local treasury, if by an application of a state legal entity or a local executive body such thing has been recognized by court as ownerless.

Article 25. The acquisition of property using budget funds

      1. Acquisition of property using budget funds shall be carried out on basis of making of civil law transactions on acquisition of property, execution of works or rendering of services (buy and sell, labor contract, fee-based services and other contracts) with compliance to the requirements and rules of the Law of the Republic of Kazakhstan “On public procurement”.

      2. Acquisition of shares of joint stock companies and stakes of participating in charter capital of limited liability partnerships, payments of shares of joint stock companies and investment in charter capital of limited liability partnerships using budget funds shall be carried out in the order established by this Law and the Budget Code of the Republic of Kazakhstan.

Article 26. Receipt of inheritance and escheated property to composition of state property

      1. In the case of death of an individual belonged to him property may be transferred to the state in accordance with a will in procedure established by the Civil Code of the Republic of Kazakhstan.

      2. In cases of absence of heirs neither by will nor by law or none of the heirs has right to inherit or all of them refused from the inheritance in accordance with the Civil Code of the Republic of Kazakhstan an inheritance remaining after the death of an individual shall be recognized as escheat property. An escheated property shall be transferred to composition of a regional communal property at a place of opening inheritance, in accordance with the procedure established by the Civil Code of the Republic of Kazakhstan

Article 27. The acquisition of rights to property under gift contract

      1. To a gift contract of property of individuals and non-state legal entities to the state provisions of chapter 27 of the Civil Code of the Republic of Kazakhstan with peculiarities stipulated by this Article shall be applied.

      Particularities of exercise of rights to gifts transferred to public servants in connection with their official position or performance of their official duties, and also members of their families shall be determined by Article 216 of this Law.

      2. Acquisition by the state of property rights under a gift contract shall be carried out in the order determined by the Government of the Republic of Kazakhstan.

      3. Transfer of land plots from private to public ownership under a gift contract shall be carried out with peculiarities of the peculiarities stipulated by the Land Code of the Republic of Kazakhstan.

      4. Transfer of property from private property to state property in useful purposes (charitable gift) shall be carried out in accordance with Article 516 of the Civil Code of the Republic of Kazakhstan.

Article 28. The acquisition of rights to property by expropriation for state needs.

      1. Acquisition by the state (the Republic of Kazakhstan or an administrative-territorial unit) of rights to property by expropriation of property for state needs shall be carried out in the order and on conditions that are established by this Law and other laws of the Republic of Kazakhstan.

      2. Acquisition of property by expropriation of property for state needs shall be carried out using budget funds or other state property in accordance with this Law and other laws of the Republic of Kazakhstan.

      3. A property acquired by the state by expropriation of property for state needs shall come to state treasury or local treasury.

Article 29. The acquisition of state property rights to treasure trove

      1. Unless otherwise provided for by this Article, treasure trove that has been found on a land plot or other immoveable property that is owned by the state, in accordance with paragraph 1 of Article 247 of the Civil Code of the Republic of Kazakhstan shall arrive in equal shares to a property of the state and property of a person that has discovered treasure, as long as it is not otherwise stipulated by the agreement between them.

      2. If treasure trope contains things concerning cultural values it shall be subjected to transfer to property of the Republic of Kazakhstan. An owner of real estate, wherein was discovered such treasure, and a person that found treasure trope shall have a right, in accordance with Article 247 of the Civil Code of the Republic of Kazakhstan to receive remuneration in amount of fifty percent of value of treasure trope in equal shares, unless it is otherwise provided for by an agreement between them. In case of discovery of treasure trope containing items relating to cultural values, on a land plot or other real estate, that belong to the state, a person that has found treasure trope shall be entitled to receive fifty percent of the value of this treasure trope.

      3. Payment of remuneration for a discovery of treasure containing items relating to cultural values shall be made from budget funds in the order determined by the Budget Code of the Republic of Kazakhstan.

Article 30. The acquisition of state property rights to finding

      1. A thing found in premises or transportation that is owned by the state, or thing with an unknown owner’s location, shall go to a district communal property on a general basis in accordance with Article 245 of the Civil Code of the Republic of Kazakhstan.

      2. In case as provided for by the second part of paragraph 4 of Article 245 of the Civil Code of the Republic of Kazakhstan, the finding shall be transferred to district communal property.

      In case of transition of things to district communal property a finder shall have a right to compensation of necessary expenses connected with storage, delivery and implementation of things from local executive bodies of regions, cities of regional significance.

Article 31. The acquisition of state property rights to unattended animals

      1. On refusal of a person that manage and use unattended animals, from acquisition of property rights to unattended animals they shall go to district communal property and shall be used in the order established by relevant local executive bodies of regions, cities of regional significance.

      2. In cases of appearance of a prior owner of animals after their transferring to state property a prior owner shall have a right to in a case where circumstances are present that indicate attachment of animals to original owner, or cruel or another improper treatment of them by a new owner, to require their return to him on conditions to be established by an agreement with relevant local executive bodies of regions, cities of regional status, and in cases of remaining at odds in a judicial proceeding.

Article 32. The acquisition of state property rights to unauthorized construction

      In recognition of socio-economic viability an unauthorized construction, erected by entity on land plots (not formed in land plots, belonged to the state lands) owned by the state and that are not in land use, may be transferred to district communal ownership, with compensation of expenses of construction in amount determined by court.

      In implementation of unauthorized construction on a land plot that is under state’s land use, taking into account socio-economic viability of the unauthorized construction may be transferred to district communal ownership, with compensation of expenses of construction in amount determined by court from state budget.

Article 33. The receipt to composition of state property of ownerless cultural and historic monuments, cultural values

      1. In cases of waif containing by an owner of cultural and historical monuments, cultural values comprised as particularly valuable and protected by the state in accordance with the legislation of the Republic of Kazakhstan that are in threat of loss of their significance by decision of a court shall be seized from an owner by the state through repayment.

      2. On repayment of historical and cultural monuments, cultural values an owner shall be compensated for their costs in amount established by agreement of the parties, and in case of dispute be settled judicially.

      3. Seizure from an owner waif contained historical and cultural monuments shall be based on results of implementation of state control over protection and use of historical and cultural heritage.

      State control in field of protection and use of historical and cultural heritage shall be carried out with a purpose of securing compliance with individuals and legal entities of the legislation of the Republic of Kazakhstan in field of protection and use of historical and cultural heritage and transfer to an ownership of the state waif contained monuments of history and culture.

      4. State control over a status of use and way of maintenance of historical and cultural monuments of international and republican importance shall be carried out by an authorized body on protection and use of objects of historical and cultural heritage and local executive bodies of regions, the cities of republican significance, capital shall carry out protection and use of historical and cultural monuments of local importance.

      5. In case of detection in exercising of state control over a condition of use and way of maintenance of historical and cultural monuments facts of their mismanaging relevant authorized bodies shall issue an improvement notice on a duty to securing of historical and cultural monuments and elimination of such violations within a period indicated in the improvement notice:

      To an owner of historical and cultural monuments of international and republican value –an authorized body;

      To the owner of historical and cultural monuments of local value –local executive bodies.

      6. In case of improper maintenance and preservation of cultural values, included into a state register of national cultural heritage, an authorized body in field of culture shall issue a notice to an owner of cultural values on violation of obligations on preservation of cultural values and elimination of such violations within specified in a notice period.

      7. In case of not remedying a failure by an owner of historical and cultural monuments and cultural values violation of obligation securing their safety a plaint to a court on seizure of historical and cultural monuments, cultural values from an owner shall be sued:

      in respect of historical and cultural monuments of international and republican values, cultural values by an authorized body;

      in respect of historical and cultural monuments of local values, cultural values by local executive bodies of regions, cities of republican state and capital.

      8. In case of seizure by the state under a decision of court of historical and cultural monuments of international and republican values, cultural values, they shall go to composition of republican property, and cultural monuments of, cultural values local importance to composition of communal property.

Article 34. The acquisition of state property rights to agricultural land that is in private ownership

      Acquisition of state property rights to agricultural land that is in private ownership on seizure from citizenship of the Republic of Kazakhstan of citizen that owned land plot shall be carried out in accordance with the Land Code of the Republic of Kazakhstan.

Article 35.The emergence of rights to state property in cases of restitution under termination or modification of an agreement or invalidation of a contract

      1. In cases of a termination or modification of a contract, on basis of that state property has been transferred to private ownership of individuals or legal entities prior to termination or modification of a contract, parties shall not be entitled to claim a return of executed by them under an obligation prior to termination or modification of a contract, unless otherwise provided for by laws of the Republic of Kazakhstan or by agreement of the parties.

      2. In case of judicial acceptance of a contract as invalid one, on basis of that state property has been transferred to private ownership of individuals or legal entities, such property shall be returned to the state, and under impossibility of returning property specifically, its cost shall be compensated in money.

Article 36. Presumption of law to state property

      1. On absence of a dispute about recognition of right to building, construction, or other immovable property put on balance of state legal entity prior to introduction of system of state registration of rights to immovable property in the Republic of Kazakhstan, right of state ownership to property, in case of absence of the necessary legal documents may be confirmed by documents of an authorized body on state property (local executive body) about finding such property in composition of state property. In cases of arising of a dispute recognition of a right of ownership to this property shall be realized by judicial procedure on basis of a claim of an interested person.

      2. All historical and cultural monuments, located on the territory of the Republic of Kazakhstan and not being the property of individuals and legal entities shall be the property of the Republic of Kazakhstan.

      Footnote. Article 36 as amended by the Law of the Republic of Kazakhstan dated 28.10.2015 № 368-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Chapter 4.THE REQUISITION
Paragraph 1. The requisition in an emergency of natural and man-caused character

Article 37. General provisions on the requisition in an emergency of natural and man-caused character

      1. Requisition in an emergency of natural and man-caused character shall be carried out only in exceptional cases, in absence or insufficiency of government reserve of material and technical, commodity, medical and other resources created to provide guaranteed protection of population, environment and objects of economy from emergency situations of natural and man-caused character.

      2. Requisition in an emergency of natural and man-caused character shall be limited to a zone of an emergency (defined territory where an emergency situation occurred) and (or) a period of case of emergency introduced in an emergency zone in accordance with the legislation of the Republic of Kazakhstan. Requisition in an emergency shall not be allowed outside an emergency zone or emergency period.

      3. Requisition in an emergency of natural and man-caused character shall be allowed in relation to property of individuals or legal entities irrespective from citizenship or place of state registration that is necessary for securing an emergency recovery of natural and man-caused character.

Article 38. Basic objectives and conditions of the requisition in an emergency of natural and man-caused character

      1. Requisition in an emergency of natural and man-caused character shall be carried out to provide work on liquidation in an emergency of natural and man-caused character including providing population suffered from emergency of natural and man-caused character with food, medicines, premises, creating conditions for sustainable functioning of national economy, and settlement of financial problems occurring on the liquidation of emergency of natural and man-caused character.

      2. Compensation to an owner of requisitioned property by market price of property shall be determined at an option of an owner of property as on the date of the requisition, or the day of reimbursement of a cost of property.

      3. The Government of the Republic of Kazakhstan shall determine a list of organizations property of that may not be requisitioned in an emergency of natural and man-caused character in accordance with international treaties ratified by the Republic of Kazakhstan.

      4. Particularities of requisition of certain types of property shall be established by laws of the Republic of Kazakhstan.

Article 39.The grounds of the requisition in an emergence of natural and man-caused character

      1. In case of emergency of natural and man-caused character requisition shall be allowed in accordance with plans of local executive bodies on priority actions for localization and liquidation of emergencies of natural and man-caused character, that is developed in accordance with the Law of the Republic of Kazakhstan "On emergencies of natural and man-caused character" and other laws of the Republic of Kazakhstan.

      2. On introduction of emergency rule in zones of emergency of natural and man-caused character requisition shall be permitted on basis and in accordance with a decree of the President of the Republic of Kazakhstan on introduction of emergency rule to performance the necessary rescue and accident-restoration activities.

      3. Requisition under emergency of natural and man-caused character shall also be permitted on performing of necessary rescue and accident-restoration activities on the basis of a decision of head of liquidation of emergency situations.

Article 40.The order of the requisition in an emergency of natural and man-caused character

      1. General management and requisition secure in emergency of natural and man-caused character, depending on a type (object, local, regional and global) and classification of emergency situations that are established by the Government of the Republic of Kazakhstan shall be carried out by head of liquidation of emergency situations.

      2. Requisition shall be carried out on basis of decisions of local executive bodies of regions, cities of republican significance, capital, districts, and cities of regional significance.

      Requisition on performing rescue and accident-restoration activities in an emergency area of natural and man-caused character, and also on introduction of emergency rule in emergency zones of natural and man-caused character may be carried out considering particularities established by Articles 42 and 43 of this Law.

      3. A decision of local executive body on requisition shall be made on basis of a decision of head of liquidation of emergency situations of natural and man-caused character.

      4. A decision shall contain information about a property required for securing of activities on liquidation of emergencies of natural and man-caused character.

      5. A decision on requisition shall contain:

      1) list of property subjected to requisition, information about owner and location of property, and also collecting point of requisitioned property and other information about requisitioned property;

      2) personal composition of officials, that are responsible for control and requisition secure in emergency zone of natural and man-caused character;

      3) personal composition of officials, that are authorized to carry out seizure of property in emergency zone of natural and man-caused character;

      4) number and personal composition of evaluating commission, that shall include at least one evaluator;

      5) terms of enforcing a requisition;

      6) terms of payment of compensation;

      7) other information, required for enforcing a requisition.

      6. If so required, including cases of changing of a list of requisitioned property, personal composition of officials or evaluating commission a decision on requisition shall be made relevant modifications.

      7. A decision on requisition and all further amendments and addition to it shall be published not later than within two days from the moment of acceptance in mass media, as well as placement in accessible for free insight places in emergency zones of natural and man-caused character.

Article 41. Seizure of property for that the decision on requisition has been made

      1. Prior to seizure of property an owner of property shall be familiarized with a decision on requisition under personal signature.

      2. Seizure of property shall be carried out by authorized official in presence of a property owner (or his authorized representative) and members of an evaluation committee on the basis of an act on requisition.

      3. An act on the requisition shall contain:

      1) basis of enforcing requisition specifying reference details of a decision on the requisition;

      2) time and place of seizure of property;

      3) information about officials, conducting a requisition in composition and number of members of an evaluation committee, about an owner of requisitioned property, and other persons presenting during seizure of a property;

      4) description of requisitioned property specifying weight, measure, quality and kind of packaging, legal documents, information about state registration and other specific characteristics;

      5) information about evaluation of property and extent of compensation;

      6) term of payment of compensation and indication of relevant enforcement body, funded from a local budget, that provide its payment, specifying responsible official;

      7) other necessary information about requisition and requisitioned property.

      4. An act on requisition shall be completed not less than in two copies, signed by authorized officials, members of an evaluation commission and a property owner or his authorized representative and one copy is shall be to an owner of requisitioned property or his authorized representative. The second copy shall be sent by an authorized official in order established by the legislation of the Republic of Kazakhstan, with a report to local executive bodies of regions, cities of republican significance, capital, districts, and cities of regional significance.

Article 42. Particularities of the requisition upon introduction of emergency regime in emergency zones of natural and man-caused character

      1. Upon introduction of emergency regime in emergency zones of natural and man-caused character head of rescue service shall carry out activities to eliminate the emergencies of natural and man-caused character and is entitled to enforce a requisition of necessary property for necessary rescue and accident-restoration activities under his personal responsibility.

      2. Seizure of property shall be carried out on basis of an act on requisition that shall contain:

      1) basis of enforcing a requisition;

      2) time and place of seizure of property;

      3) information about official enforcing a requisition specifying a position, title and name as well as details of order on appointment of authorized to requisition persons, owner requisitioned property, of other persons present during seizure;

      4) description of requisitioned property specifying weight, measure, quality and kind of packaging, legal documents, information about state registration and other specific characteristics;

      5) information about evaluation of property and extent of compensation;

      6) other necessary information about requisition and requisitioned property.

      3. One copy of an act on requisition shall be issued to an owner of requisitioned property or his authorized representative.

      4. About enforced requisition a report that is sent to the authorized body in field of emergency situations of natural and man-caused character and local executive bodies of regions, cities of republican significance, capital, districts, and cities of regional significance with accompanying acts on requisition in accordance with the legislation of the Republic of Kazakhstan shall be written.

      Footnote. Article 42 as amended by the Law of the Republic of Kazakhstan dated 11.04.2014 No. 189-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 43. The requisition upon performing rescue and accident-restoration activities in emergency zone of natural and man-caused character

      1. In exceptional cases, on performing rescue and accident-restoration activities in emergency zone of natural and man-caused character requisition shall be carried out independently by head of detachments (subdivision, crew) for needs of certain detachments (subdivisions) of emergency services or emergency medical care.

      2. Seizure of property shall be carried out on basis of an act on requisition, that shall contain:

      1) indication of exceptional circumstances giving rise to requisition;

      2) time and place of seizure of property;

      3) information about an official enforcing a requisition specifying a position, title and name as well as details of order on appointment of authorized to requisition persons, owner requisitioned property, of other persons present during seizure;

      4) description of requisitioned property specifying weight, measure, quality and kind of packaging, legal documents, information about state registration and other specific characteristics;

      5) other necessary information about requisition and requisitioned property.

      3. One copy of an act on requisition shall be issued to an owner of requisitioned property or his authorized representative.

      4. A chief of detachment (subdivision, crew) of emergency services or emergency medical care shall immediately notify the authorized body in field of emergency situations of natural and man-caused character about enforcing a requisition with accompanying report and act on requisition.

      Footnote. Article 43 as amended by the Law of the Republic of Kazakhstan dated 11.04.2014 No. 189-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 44. Restitution of requisitioned property under emergency of natural and man-caused character

      1. An owner of requisitioned property at termination of emergency regime in emergency zones of natural and man-caused character or termination of emergency situation of natural and man-caused character shall be entitled to demand by judicial procedure a return of remaining property by rules provided for by this Article.

      2. An owner of requisitioned property that has not received compensation for exempt property shall be entitled to demand at his own choice a return of property and compensation of losses or providing full compensation. The same right has an owner that received a partial refund. On return of property to an owner, that received a partial refund, compensation of losses shall be performed taking into account paid amount.

      3. An owner of requisitioned property, that received compensation in full, shall have a right to privileged redemption of remaining property for price of property on the day of return, but not above price of received compensation.

      4. Particularities of return to an owner of requisitioned property of certain types of property shall be established by the Land Code of the Republic of Kazakhstan, law of the Republic of Kazakhstan “On housing relations”, and other laws of the Republic of Kazakhstan.

Article 45.Payment of damages for a requisitioned property

      1. Payment of damages for a requisitioned property from budgetary funds shall be paid in accordance with the Budget Code of the Republic of Kazakhstan.

      2. Compensation should be paid within terms specified in a decision on requisition, but not later than sixty calendar days from the moment of signing the act on the requisition.

      3. In case of delay in payment of compensation in amount of debt penalty shall be charged in amount calculated on basis of official refinance rate of the National Bank of the Republic of Kazakhstan on the day of actual payment.

Article 46. Requisitioned property record in emergency of natural and man-caused character

      1. State body, carrying out requisition on emergency of natural and man-caused character, shall be obliged to register requisitioned property, that shall contain a list of exempt property and information about detachments (subdivisions) of rescue services or other organizations, that has been transferred requisitioned property for its use.

      2. An order of accounting of requisitioned property, that is transferred for needs of securing of activities on liquidation of emergencies of natural and man-caused character, and also on carrying out of rescue and accident-restoration activities, shall be determined by the Government of the Republic of Kazakhstan and shall be organized by an authorized body in field of emergency situations of natural and man-caused character.

      Footnote. Article 46 as amended by the Law of the Republic of Kazakhstan dated 11.04.2014 No. 189-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 47. Guarantee of an owner’s rights on the requisition

      1. Disputes that have arisen during production of requisition shall be decided in accordance with the legislation of the Republic of Kazakhstan.

      2. A decision on requisition and also evaluation and extent of compensation for requisitioned property, including compensation of losses may be challenged by an owner of requisition property in a judicial proceeding.

      3. A period of prescription shall not be extended to requirements of an owner of requisitioned property on reimbursement of costs of property and losses caused by requisition.

Paragraph 2.Particularities of the requisitions for defense needs in the period of martial law and wartime.

Article 48. The grounds and order of the requisition for defense needs in the period of martial law

      1. On imposing martial law and declaration of mobilization (total or partial) requisition for defense needs shall be carried out in case of recent needs in property, that has not been foreseen by mobilization plan of the Republic of Kazakhstan and plan of production of goods, performing works and providing services for a relevant period.

      2. Requisition for defense needs in a period of a martial law shall be carried out on basis of an instruction of General staff of Armed Forces of the Republic of Kazakhstan.

      3. Requisition for defense needs shall be carried out on basis of decisions of local executive bodies of regions, cities of republican state, capital, districts, and cities of regional status on basis of an instruction of General staff of Armed Forces of the Republic of Kazakhstan.

      4. General management and coordination of activity of bodies of military administration and military units on requisition for defense needs shall be carried out by the General staff of Armed Forces of the Republic of Kazakhstan on basis of the Law of the Republic of Kazakhstan "On defense and Armed Forces of the Republic of Kazakhstan", other laws of the Republic of Kazakhstan, military service manuals of the Armed Forces of the Republic of Kazakhstan, other troops and fighting units of the Republic of Kazakhstan, as well as orders of Supreme Commander-in-Chief of the Armed Forces of the Republic of Kazakhstan.

      Footnote. Article 48 is in the wording of the Law of the Republic of Kazakhstan dated 16.02.2012 No 562-IV (shall be enforced upon expiry of ten calendar days after its first official publication)

Article 49. Property subject to requisition for defense needs

      1. On imposing martial law and declaration of mobilization (total or partial) subject to requisition shall be transport vehicles and another property necessary for defense needs.

      2. On imposing martial law and declaration of mobilization (total or partial), where required requisition as a measure of securing regime of martial law, a list of property subject to requisition shall be determined by the General staff of the Armed Forces of the Republic of Kazakhstan.

      3. List of organizations a property of that may not be requisitioned for defense needs in accordance with international treaties ratified by the Republic of Kazakhstan shall be determined by the Government of the Republic of Kazakhstan.

      4. List and norms of property of individuals, that are not subject to requisition, shall be determined by the Government of the Republic of Kazakhstan in accordance with rules of supply of population of the Republic of Kazakhstan in wartime, approved by the Government of the Republic of Kazakhstan.

      Footnote. Article 49 as amended by the Law of the Republic of Kazakhstan dated 16.02.2012 No.562-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 50. Particularities of requisition for defense needs in wartime

      1. In wartime an area where conducted warfare and not valid local executive bodies, the General staff of the Armed Forces of the Republic of Kazakhstan shall independently carry out requisition of property that is required for defense needs with subsequent notification of the Government of the Republic of Kazakhstan about it. To enforce a requisition General staff of the Armed Forces of the Republic of Kazakhstan shall issue regulations to local bodies of military administration or commanders of military units (chiefs of institutions) that enforce a requisition.

      2. Seizure of property shall be carried out on basis of an act on requisition, that shall contain:

      1) basis of enforcing a requisition specifying reference details of exigency of General staff of the Armed Forces of the Republic of Kazakhstan;

      2) time and place of seizure of a property;

      3) information about official enforcing a requisition specifying a position, title and name as well as details of order on appointment of authorized to requisition persons, owner requisitioned property, of other persons present during seizure;

      4) description of requisitioned property specifying weight, measure, quality and kind of packaging, legal documents, information about state registration and other specific characteristics;

      5) information about evaluation of property and extent of compensation;

      6) other necessary information about requisition and requisitioned property.

      3. About enforced requisition shall be written a report that is sent to the General staff of the Armed Forces of the Republic of Kazakhstan with accompanying acts on the requisition.

      Footnote. Article 50 is in the wording of the Law of the Republic of Kazakhstan dated 16.02.2012 No. 562-IV (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 51. Particularities of the requisition for defense needs on conducting warfare

      1. In exceptional cases in zones of conduction warfare requisition for defense needs of certain military units shall be carried out independently by command officer of military unit.

      2. Seizure of property shall be carried out on basis of an act on requisition, that shall contain:

      1) specifying about exceptional cases constituted a ground for requisition;

      2) time and place of seizure of property;

      3) information about a command officer of military unit enforcing a requisition with specification of position, title and name as well as details of a written order on appointment of authorized to requisition persons, and if requisition is conducted by appointed person, information about an owner requisitioned property, of other persons present during seizure;

      4) description of requisitioned property specifying weight, measure, quality and kind of packaging, legal documents, information about state registration and other specific characteristics;

      5) other necessary information about requisition and requisitioned property.

      3. One copy shall be given to an owner of requisitioned property or his authorized representative.

      4. A command officer of military unit shall immediately notify the General staff of the Armed Forces of the Republic of Kazakhstan about an enforced requisition with report and acts on requisition attached thereto.

      Footnote. Article 51 as amended by the Law of the Republic of Kazakhstan dated 16.02.2012 No.562-IV (shall be enforced upon expiry of ten calendar days after its first official publication)

Article 52. Payment of compensation for requisitioned property for defense needs

      1. General staff of the Armed Forces of the Republic of Kazakhstan shall immediately notify the Government of the Republic of Kazakhstan about an enforced requisition for defense needs with attachment of reports on seizure of property and acts on requisition for subsequent provision of compensation to owners of the requisitioned property.

      2. Compensation for requisitioned property for defense needs shall be paid from budget funds in accordance with the Budget Code of the Republic of Kazakhstan.

      3. An order of compensation by the state of a cost of requisitioned and also provided for defense needs property of individuals and legal entities shall be determined by the Government of the Republic of Kazakhstan.

      Footnote. Article 52 as amended by the Law of the Republic of Kazakhstan dated 16.02.2012 No.562-IV (shall be enforced upon expiry of ten calendar days after its first official publication)

Article 53. Record of property subjected to the requisition for defense needs and requisitioned property for defense needs

      1. In peacetime, in accordance with needs of the Armed Forces of the Republic of Kazakhstan on wartime, local executive agencies shall perform are record of transport vehicles and another property that may be requisitioned for defense needs.

      2. Record of property specified in paragraph 1 of this Article shall be based on information of state bodies that are carry out state registration of certain types of property and state agencies that conduct departmental and national statistical supervision.

      3. An order of granting information by state bodies that carry out state registration of certain types of property, and state bodies that conduct departmental and national statistical supervision, to local executive bodies concerning property subjected to requisition for defense needs, shall be determined by the Government of the Republic of Kazakhstan.

      4. Record of property that is subjected to requisition for defense needs, shall not in peacetime restrict a right of free possession, use and (or) disposal of this property.

      5. Primary record of requisitioned property shall be conducted by local military authorities or command officers of military units (heads of institutions), that carried out a requisition that shall guide a list of seizure property and information about military units or other organizations, that has been transferred for use of requisitioned property.

      6. An order of record of requisitioned property that has been transferred for defense needs shall be established by the Government of the Republic of Kazakhstan and shall be organized by the General staff of the Armed Forces of the Republic of Kazakhstan.

      Footnote. Article 53 as amended by the Law of the Republic of Kazakhstan dated 16.02.2012 No.562-IV (shall be enforced upon expiry of ten calendar days after its first official publication)

Chapter 5. NATIONALIZATION

Article 54.Principles of nationalization

      1. Nationalization may be carried out in public interests to secure the national security of the Republic Kazakhstan, with observance of due legal procedure and done without discrimination, upon condition of prior and fair compensation by the Republic of Kazakhstan of market price nationalized property and other damages.

      2. Nationalization shall be an exceptional case (exclusive form) of alienation of property owned by individuals and non-state legal entities, and shall be executed only after exhaustion of all other possible forms of alienation of property, provided under the Civil Code of the Republic of Kazakhstan.

      3. Nationalization shall be carried out subject to publicity of nationalization procedure.

Article 55. The ground for nationalization

      Nationalization shall carried out on basis of the Law of the Republic of Kazakhstan about state appropriation of property that is in a private property of individuals and legal entities (hereinafter - the law of the Republic of Kazakhstan on the nationalization).

Article 56. The amount of compensation of costs of nationalized property

      1. On nationalization refundable shall be a cost of nationalized property in accordance with paragraph 4 of Article 249 and with Article 266 of the Civil Code of the Republic of Kazakhstan.

      2. Amount of compensation that is to be paid to an owner nationalized property shall be determined proceeding from market cost of property.

      3. Amount of compensation shall be determined at the date of evaluation.

      Footnote. Article 56 as amended by the Law of the Republic of Kazakhstan dated 21.01.2019 No. 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 57.The order of payment of compensation

      1. Compensation of cost of property and other losses shall be made on a full scale prior to transferring ownership of nationalized property to the Republic of Kazakhstan.

      2. Compensation shall be paid in cash in the national currency of the Republic of Kazakhstan that is tenge, and in cases provided for by international treaties ratified by the Republic of Kazakhstan in foreign currency.

      3. The compensation shall be paid from budget funds.

      4. Compensation by another property shall be permitted by an agreement between the Republic of Kazakhstan represented by an authorized body on state property and owner of property. Specified agreement shall be concluded in written form.

      5. Compensation shall be paid one-time, and carrying out nationalization, that provide payment by installments of compensation shall not be allowed.

      6. An actual transfer of nationalized property may be made only after obtaining of fair compensation by an owner and other persons rights of that in relation to nationalized property shall be terminated or restricted in case of nationalization.

Article 58. The acquisition of rights by the Republic of Kazakhstan to nationalizing property

      Acquisition of rights by the Republic of Kazakhstan to nationalized property shall be carried out according to the procedure, provided for by the Civil Code of the Republic of Kazakhstan, the Land Code of the Republic of Kazakhstan, the Law of the Republic of Kazakhstan “On housing relations” and other laws the Republic of Kazakhstan.

Article 59. Functions of state bodies on nationalization

      1. An authorized body on state property shall perform all necessary actions that are related to an actual adoption of nationalized property.

      2. An authorized body on state property shall include information about nationalized property to a register of state property.

      3. The Government of the Republic of Kazakhstan on behalf of the Republic of Kazakhstan shall exercise a right of an owner of nationalized property.

      4. The Government of the Republic of Kazakhstan shall settle nationalized property on republican legal entity or by the rules of Article 114 of this Law shall transfer to payment of shares or stakes of participating of specially created joint stock company or limited liability partnerships with absolute participation of the state, or national managing holding or national holding or national company.

      5. An authorized body on state property shall manage nationalized property until its transfer in the order established by paragraph 4 of this Article.

      6. Since transfer of nationalized property an authorized body on state property shall exercise control over an efficient use of nationalized property settled on republican legal entities.

Article 60. Protection of rights of an owner of nationalized property

      Protection of rights of an owner nationalized property and of other people, rights of that in relation to nationalized property shall be terminated or restricted in case of in a judicial proceeding in accordance with the laws of the Republic of Kazakhstan.

Chapter 6. EXPROPRIATION OF LAND PLOT OR OTHER IMMOVEABLE PROPERTY DUE TO THE FACT OF THE SEIZURE OF A LAND PLOT FOR STATE NEEDS.

      Footnote. Throughout the text of Chapter 6, the words “seized”, “seizure”, “seizure”, “seized” shall be replaced by the words “alienated”, “alienation”, “alienation”, “alienated” in accordance with the Law of the Republic of Kazakhstan 21.01.2019 No. 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 61. The subject and general conditions of expropriation of land plot or other immovable property due to the fact of seizure of a land plot for state needs

      1. Expropriation of land plot or other immovable property due to the fact of a seizure of a land plot for state needs may be exercised only in respect of a land plot.

      In case of a private property right to land plot may not be justified on basis of information from a legal cadastre and (or) documents of title, an expropriation for state needs shall be made in respect of buildings, constructions and other objects of real estate (housings, residential houses (residential buildings), residential premises (flats), non-residential premises), located on current land plot.

      2. Expropriation of land plot or other immovable property due to the fact of seizure of land plot for state needs may be made subject to transparency of procedure for expropriation. A lack of transparency requirements by an owner of the alienated property shall be the ground for denial of alienation of property for state needs.

      3. Since receipt of a notice by an owner or non-state land user on expropriation of a land plot or other immovable property due to the fact of a seizure of land for state needs, the state shall have a priority right of its purchase.

      4. Protection of rights of an owner of alienated property for state needs shall be carried out in a judicial proceeding.

      5. An owner or non-state land user of alienated land plot for state needs after acceptance of the Decree by the Government of the Republic of Kazakhstan or local executive authority specified in Paragraph 2 of Article 63 of this Law shall be entitled to initiate the conciliatory procedures in accordance with Article 69 of this Law.

      6. Rules on expropriation of a land plot or other immovable property due to the fact of a seizure of land plot for state needs shall also apply to cases of location of land plot in land use of individual or non-state legal entity in recognition of the peculiarities provided by Article 67 of this Law.

      Footnote. Article 61 as amended by the Law of the Republic of Kazakhstan dated 21.01.2019 No. 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 62. Principles of carrying out expropriation of land plot or other immovable property due to the fact of seizure of land plot for state needs

      1. Expropriation of land plot or other immovable property due to the fact of seizure of land plot for state needs shall be an exceptional case of alienation of property owned by individuals and non-state legal entities, and may only be exercised on impossibility of use of any other possible cases of alienation of property, provided by the Civil Code of the Republic of Kazakhstan and the Laws of the Republic of Kazakhstan.

      2. Expropriation of land plot or other immovable property due to the fact of seizure of land plot for state needs shall not be allowed if available other (alternative) ways to meet state needs.

      3. Any seizure of property, pursuing commercial aims of non-state legal entities and aims of satisfying non-state interests or other seizure of property not arising from objectives of exercising of state functions and not pursuing socially significant goals shall not be recognized as seizure of property for state needs. In these cases, alienation of property shall be allowed by an agreement between a property owner and an entity pursuing commercial aims, on basis of buy and sell agreement of property between them.

      4. Expropriation of land plot or other immovable property due to the fact of seizure of land for state needs shall be permitted only in an extent necessary to meet state needs.

      5. Non-compliance of provisions of this Article shall be a basis for court's denial of expropriation of a land plot or other immovable property due to the fact of seizure of land plot for state needs and cancellation of an adopted resolution, specified in Paragraph 2 of Article 63 of this Law.

Article 62-1. Conditions of equivalent compensation for expropriation of land plot or other immovable property due to the fact of seizure of land plot for state needs

      1. Equivalent compensation in relation to this Article means setting the amount of compensation of the value of land plot alienated for state needs and immovable property located on it (if any), allowing to restore the conditions of use of land plot and immovable property located on it until the time of seized.

      2. For land property alienated for state needs, an owner or a non-state land user shall be given equivalent compensation.

      3. An equivalent compensation shall be made in one of the following ways:

      1) provision of other land property or immovable property in the manner and conditions established by this Law;

      2) compensation of market value of alienated land plot or other immovable property due to the fact of seizure of the land plot for state needs in the manner and conditions established by this Law.

      Footnote. Chapter 6 is supplemented by Article 62-1 in accordance with the Law of the Republic of Kazakhstan dated 21.01.2019 No. 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 62-2. Conditions for granting an equivalent land plot or other immovable property due to the fact of seizure of land plot for state needs

      1. The granting of an equivalent land plot to an owner or non-state land user shall be carried out taking into account the location of alienated land plot, its intended purpose, and square with compensation of damages (if any).

      In this respect, an equivalent land plot must be granted within the settlement in which the land plot shall be alienated. The location of such a land plot within the settlement shall be determined in the draft agreement on alienation of a land plot for state needs, directed in accordance with Article 64 of this Law.

      2. In case of demolition of a residential house due to the fact of seizure of land plot for state needs, the granting of other immovable property shall be made in the manner established by the Law of the Republic of Kazakhstan "On Housing Relations".

      3. The granting of an equivalent land plot to an owner or non-state land user shall be carried out in accordance with the manner established by Article 43 (with the exception of the requirements of Subparagraphs 1), 2), 3), 4) and 5) of Paragraph 1) of the Land Code of the Republic of Kazakhstan.

      In this respect, the costs of land management in granting of an equivalent land plot to an owner or non-state land user shall be financed from budget funds.

      4. The price of the granted state-owned land plot in exchange shall be determined by the appraiser at its market value after valuation of the alienated land plot or other immovable property due to the fact of seizure of the land plot for state needs.

      5. If the value of alienated land plot shall be higher than the value of the land plot granted in exchange, then the difference in its value shall be reimbursed to the owner.

      Footnote. Chapter 6 is supplemented by Article 62-2 in accordance with the Law of the Republic of Kazakhstan dated 21.01.2019 No. 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 63. Beginning and termination of expropriation of land plot or other immovable property due to the fact of seizure of land plot for state needs

      1. About beginning of an expropriation of a land plot or other immovable property due to the fact of seizure of land plot for state needs in exceptional cases, provided by Article 84 of the Land Code of the Republic of Kazakhstan a resolution of the Government of the Republic of Kazakhstan or local executive authority shall be adopted in accordance with a competence, stipulated by the Land Code of the Republic of Kazakhstan.

      2. In a resolution about beginning of an expropriation of a land plot or other immovable property due to the fact of seizure of land plot for state needs shall be shown:

      1) purpose and grounds of expropriation for state needs;

      2) location, square, cadastral number of a land plot;

      3) an owner of a property or non-state land user;

      4) date of an expropriation, but not earlier than three months from the date of official publication of this resolution;

      5) place of application of an owner or non-state land user for implementation of mediation procedures.

      In case of making alterations to the resolution in part of Subparagraphs 2) and 4) of this Paragraph, the procedure of expropriation for state needs shall be repeated from the date of publication of a resolution on amendments and additions to the given regulation.

      Specified resolution if necessary shall contain other information concerning expropriation of land plot or other immoveable property due to the fact of seizure of land plot for state needs.

      3. In cases of an adoption of a resolution specified in Paragraph 2 of this Article shall be within competence of a superior executive authority, preparation of materials for an adoption of this resolution, as well as for bringing a suit in court and legal representation in court shall carry out inferior executive authority at the place of location of a land plot.

      4. An executive authority, that adopted a resolution specified in Paragraph 2 of this Article, shall be entitled to terminate a process of expropriation for state needs, by adopting resolution on termination of expropriation for state needs.

      5. Specified in Paragraphs 2 and 4 of this Article resolutions shall be published respectively in the republican or local mass media including Internet resources of executive authorities, within three working days from the moment of their adoption.

      6. A resolution specified in Paragraph 2 of this Article may be appealed may be appealed in the manner established by the legislation of the Republic of Kazakhstan.

      7. If a private property right to land plot in the manner established by the legislation of the Republic of Kazakhstan, shall not be registered, an owner after adoption of a resolution specified in Paragraph 2 of this Article may carry out necessary activities to confirm a private property right to land plot in respect of that has been adopted a resolution.

      Whereas a term of expropriation for state needs, established by the resolution specified in Paragraph 2 of this Article shall be extended for no more than one year.

      Footnote. Article 63 as amended by the Law of the Republic of Kazakhstan dated 21.01.2019 No. 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 64. The order of notification about expropriation of land plot or other immovable property due to the fact of seizure of land plot for state needs

      1. An executive authority or on behalf of the superior agency of an executive inferior authority shall be obliged to direct no later than three calendar days after publication of a resolution specified in Paragraph 2 of Article 63 of this Law to an owner or non-state land user a written notification about expropriation of land plot or other immovable property due to the fact of seizure of land plot for state needs (hereinafter referred to as - notification about expropriation of land plot for state needs) by post requiring a notice of receipt of posting. In case of an absence of a receipt notice of post sending a document specified in this Paragraph shall be directed again.

      2. The notification about expropriation of land plot for state needs shall include:

      1) information on the adopted resolution specified in Paragraph 2 of Article 63 of this Law (with an attachment of copy of the resolution);

      2) information about an owner or non-state land user;

      3) location, square, cadastral number of alienated land or other immovable property;

      4) information on the procedure for determining the amount of compensation at market value;

      5) information on the possibility of choosing one of the ways of equivalent compensation;

      6) information on the procedure for signing an agreement on alienation of a land plot for state needs, as well as an explanation of judicial procedure for resolving the issue of expropriation upon refusal to enter into an agreement;

      7) the terms for providing copies of title and identification documents to the alienated land plot or other immovable property for the organization of their assessment.

      Specified notification, if necessary, may contain other information related to expropriation of land plot or other immovable property due to the fact of seizure of land plot for state needs.

      3. Mediation procedures may be initiated by the owner or a non-state land user in accordance with Paragraph 1 of Article 69 of this Law.

      4. The owner or non-state land user to familiarize with the notification specified in Paragraph 2 of this Article, as well as to provide copies of title and identification documents for a land plot or other immovable property shall be provided not less than fifteen calendar days from the date of receipt of the notification.

      5. The notification on expropriation of land plot for state needs as a legal claim shall be subject to state registration in accordance with the Law of the Republic of Kazakhstan "On state registration of rights to immovable property".

      Footnote. Article 64 is in the wording of the Law of the Republic of Kazakhstan dated 21.01.2019 No. 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 65. Expropriation of land plot or other immovable property due to the fact of seizure of land plot for state needs

      1. Expropriation of land plot or other immovable property due to the fact of seizure of land plot for state needs shall be carried out after an expiration of periods, established in the resolution specified in Paragraph 2 of Article 63 of this Law, with a consent of an owner or non-state land user, unless otherwise provided by the Laws of the Republic of Kazakhstan or by court decision.

      2. Expropriation of land plot or other immoveable property due to the fact of seizure of land plot for state needs for implementation of concessional projects may be carried out by local executive authorities at the expense of funds of concessionaire, on conditions of transferring to a concessor redeemed by them land plots on terms and conditions stipulated by a concession agreement, but not later transfer of a concession or of unfinished construction of an object of concession to state ownership.

      3. Basis of expropriation of land plot or other immovable property due to the fact of seizure of land plot for state needs shall be an agreement on alienation of a land plot for state needs or a decision of a court.

      Unchallenged in court or unreversed in accordance with paragraph 4 of Article 63 of this Law a resolution specified in Paragraph 2 of Article 63 of this Law, and also violation of procedure established by Paragraphs 7, 8, 9 and 11 of this Article may not be basis for carrying out expropriation of land plot or other immovable property due to the fact of seizure of land plot for state needs.

      4. Termination of a private property right and land use rights, as well as a state's right to land plot and other immovable property shall be subject to state registration with an agency carrying out state registration of rights to immovable property, in the manner established by the legislation of the Republic of Kazakhstan, on basis of an agreement on alienation of a land plot for state needs or court decisions and statements of the agency, that adopted a resolution specified in Paragraph 2 of Article 63 of this Law.

      5. Local executive authority shall, within one month from the date of receipt of copies of title and identification documents for an alienated land plot or other immovable property, conduct their assessment.

      If the owner or non-state land user shall not provide copies of title and identification documents for the alienated land plot or other immovable property, the local executive body shall has the right to request them from the authorized state agency and (or) organizations.

      6. Based on the results of assessing the value of property alienated for state needs, the local executive body shall prepare a draft agreement on alienation of a land plot for state needs within ten working days and send it to the owner or to a non-state land user by post requiring a notice of receipt of posting. In case of an absence of a receipt notice of post sending a document specified in this Paragraph shall be directed again.

      7. An agreement on alienation of a land plot for state needs shall contain:

      1) parties to the contract, including the list of persons, rights of that in connection with seized property shall be terminated or limited;

      2) identification characteristics of alienated land plot or other immovable property and their composition, including structures, construction of which shall not be completed;

      3) rights to a land plot or other immovable property, which shall be terminated;

      4) price for an alienated land plot, determined in accordance with the procedure established by Article 87 of the Land Code of the Republic of Kazakhstan and Article 67 of this Law;

      5) amount of refundable damages, including a cost of immovable property, in case of their being inflicted in connection with an expropriation;

      6) deadline and procedure for payment of a price (cost) for alienated land plot or other immovable property due to the fact of seizure of land for state needs;

      7) deadline for transfer of alienated land plot and other immovable property;

      8) order of financing of state expenditures to expropriation of land plot or immovable property due to the fact of seizure of land plot for state needs.

      8. In the case of granting an equivalent land plot instead for the alienated land plot for state needs in the agreement on alienation, in addition to the requirements contained in Paragraph 7 of this Article, the following shall be indicated:

      1) identification characteristics of a land plot or other immovable property granted to the owner or non-state land user instead of the alienated;

      2) market value of a land plot or other immovable property granted instead of the alienated;

      3) difference in cost if the price of a alienated land plot or other immovable property turns out to be higher than the price (cost) of a land plot or other immovable property provided instead for the alienated property, and the procedure for paying such difference;

      4) rights to a land plot or other immovable property granted instead of alienated, which arise on the basis of an agreement on alienation of a land plot for state needs.

      9. In the case of expropriation of a land plot used for land use for state needs, the agreement on alienation of a land plot for state needs shall contain the information reflected in Paragraphs 7 and 8 of this Article, with the exception of Subparagraphs 4) and 6) of Paragraph 7 of this Article.

      10. The owner or non-state land user from the date of receipt of the draft agreement on alienation of land for state needs within twenty calendar days shall express written agreement (disagreement) with the draft agreement by submitting the appropriate application to the local executive authorities.

      If there are proposals to the draft agreement on alienation of a land plot for state needs, the owner or non-state land user may initiate mediation procedures in accordance with Paragraphs 1-1 and 2 of Article 69 of this Law.

      11. The local executive authority shall submit to the relevant local representative authority a draft agreement on alienation of a land plot for state needs within one month from the date of receipt of a written statement on agreement with the draft agreement from the owner or non-state land user.

      The draft agreement on alienation of a land plot for state needs shall be considered by the permanent commission of the local representative authority no later than a two-week period from the date of its submission with the obligatory invitation of the owner and persons whose rights to the alienated property will be terminated or limited.

      When an agreement shall be reached with an owner or non-state land user of a property alienated for state needs and other persons whose rights to the alienated property will be terminated or restricted upon expropriation, the agreement on alienation of a land plot for state needs shall be approved by the executive authority in coordination with the local representative authority and signed by an owner or non-state land user.

      12. If an owner or non-state land user disagree with a resolution indicated in Paragraph 2 of Article 63 of this Law, and (or) on not reaching agreements on alienation of land plot for state needs upon expiry of three months period after the receipt of a written notification on expropriation of land plot for state needs by an owner or non-state land user, but not later than the term (date) of expropriation defined in a resolution, specified in Paragraph 2 of Article 63 of this Law, a local executive authority shall be entitled to apply to a court with claim for expropriation of land plot or immovable property due to the fact of seizure of land plot for state needs.

      Civil cases in claims on expropriation of a land plot or other immovable property due to the fact of seizure of land plot for state needs shall be considered and decided within one month from the date of completion of preparing a case for court proceedings.

      13. In case of dismissal of the claim on expropriation of land plot or immovable property due to the fact of seizure of land plot for state needs, the losses that had been caused to an owner or non-state land user, as a result of bringing a claim and adoption of a resolution specified in Paragraph 2 of Article 63 of this Law, shall be compensated from the budgetary funds.

      14. Actual transfer of alienated land plot or other immoveable property for state needs due to the fact of seizure of land plot for state needs may be carried out only after receipt by an owner or non-state land user of rights, that in respect of alienated property shall be terminated or restricted on an expropriation, equivalent compensation made in the manner prescribed by this Law.

      State registration of termination of rights of an owner or non-state land user and origin of a right of state's ownership to such property shall be subject to submission to authority exercising state registration of rights to immovable property, a document confirming payment of compensation.

      Footnote. Article 65 is in the wording of the Law of the Republic of Kazakhstan dated 21.01.2019 № 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 66. The rights of an owner or non-state land user on expropriation of land plot or other immovable property due to the fact of seizure of land plot for state needs

      1. An owner or non-state land user from the moment of receipt notification on expropriation of land plot for state needs prior to conclusion of agreement on alienation of land plot or court decision on expropriation of a land plot or other immovable property due to the fact of seizure of land for state needs may exercise its right to land plot and other real estate and make necessary finances that secure use of such property in accordance with its intended purpose. Whereas an owner or non-state land user shall bear the risk of attributing to him, expenses and losses connected with new construction, expansion or reconstruction of buildings (structures, installations) and other real estate objects in the specified period.

      If an owner or non-state land user after alienation for state needs of a part of land plot may not use in purposive appointment remainder as before then an entire land shall be alienated.

      2. At transition of rights to real estate within the time specified in Paragraph 1 of this Article to another person by way of alienation or other grounds, and also at change of a right holder by virtue of universal legal succession procedure of expropriation of land plot or other immovable property due to the fact of seizure of land plot for state needs shall be applied (continued) in a ratio of a new right holder.

      Footnote. Article 66 as amended by the Law of the Republic of Kazakhstan dated 21.01.2019 No. 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 67. The amount of compensation of costs of land plot or other immovable property due to the fact of seizure of land plot for state needs

      1. A cost of a land alienated for state needs (excluding losses) that is acquired by an owner from the state, shall be determined in the amount of market value.

      On incomplete payment of amount for land plot (excluding losses), that is sold by the state in installments, and seizure of it by expropriation for state needs, a cost of alienated land plot shall be determined in amount of market value with the deduction of unpaid amount to the state.

      2. The cost of a land plot, as well as of immovable property located on a land plot alienated for state needs, shall be determined in the amount of their market value, regardless of the grounds of origin the rights to land plot.

      3.  A market value of the land plot or other immovable property alienated due to the fact of seizure of land for state needs, shall be determined by an appraiser on the date of assessment, subject to the provisions of Paragraph 1 of Article 208 of this Law.

      4. Amount of compensation shall be determined in accordance with Paragraphs 4 and 5 of Article 9 of the Civil Code of the Republic of Kazakhstan proceeding from cost of property and damages on a full scale that has been caused to an owner or to non-state land user as a result of expropriation of a land plot for state needs and (or) caused by an early termination of execution by an owner or non-state land user of obligations to third parties.

      Amount of compensation to other persons rights of that in relation to expropriation for state needs of land plot are going to be terminated or limited shall be determined based on losses that arise as a result of an expropriation.

      5. Amount of compensation shall be determined in tenge.

      6. Is excluded by the Law of the Republic of Kazakhstan dated 21.01.2019 No. 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication).
      Footnote. Article 67 as amended by the Law of the Republic of Kazakhstan dated 21.01.2019 No. 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 68. Payment form and terms of payment of compensation on expropriation of a land plot or other immovable property due to the fact of seizure of land plot for state needs

      1. A compensation of cost of a land plot or other immovable property due to the fact of seizure of land plot for state needs and losses subject to compensation shall be made in full scope prior to a transition to the Republic of Kazakhstan or an administrative-territorial unit of a right of ownership to specified property.

      2. Payment of compensation shall be carried out from the budgetary funds.

      3. Payment of compensation by property other than money shall be permitted upon the agreement between the Republic of Kazakhstan on behalf of the Government of the Republic of Kazakhstan or an administrative-territorial unit on behalf of a local executive authority and an owner of a property. This agreement shall be concluded in written form of a contract on alienation of a land plot for state needs.

      4. Payment of compensation shall be paid one-time not later than one month from the day of signing an agreement on alienation of a land plot for state needs or from the day of the entry of a court decision into legal force.

      5. To carry out an expropriation of land plot or other immovable property due to the fact of seizure of land for state needs, that is providing an installment of payment of compensation shall not be allowed.

      Footnote. Article 68 as amended by the Law of the Republic of Kazakhstan dated 21.01.2019 No. 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 69. Mediatory procedures on expropriation of a land plot or other immovable property due to the fact of seizure of land plot for state needs

      1. An owner of a seized property or non-state land user from the moment of receipt of a written notification on expropriation of a land plot for state needs, within fifteen calendar days, shall be entitled to initiate mediatory procedures by filing an appropriate application to local executive authority. Specified application shall be registered on the day of filling.

      The local executive authority within ten calendar days shall be obliged to consider an appeal of an owner or non-state land user to the notification of expropriation of a land plot for state needs.

      1-1. The owner or non-state land user from the moment of receiving the draft agreement on alienation of a land plot for state needs can make proposals to the draft of this agreement within twenty calendar days by submitting an appropriate application to the local executive authority.

      2. A local executive authority within one month shall be obliged to consider the proposals of an owner or non-state land user to a draft agreement on alienation of land plot for state needs on composition of alienated property, to the persons, the rights of that in respect of alienated property shall be terminated or limited, and amount of losses subject to compensation, maintenance of compensation. If necessary, the local executive authority can organize an additional assessment of cost of the alienated property.

      3. On reaching agreement between a local executive authority and an owner or non-state land user, and also by other persons the rights of that in connection of the alienated property are going to be terminated or limited on expropriation, a draft agreement on alienation of a land plot state needs shall be directed to local representative authority for approval.

      4. Upon failure in reaching agreement on transfer of property with one of interested persons specified in Paragraph 3 of this Article, an expropriation of land or other immovable property due to the fact of seizure of land plot for state needs shall be carried out in a judicial proceeding.

      5. Requirements for payment of compensation prior to transfer of ownership right of property to the Republic of Kazakhstan or an administrative-territorial unit and other conditions of payment of compensation, established by Articles 67 and 68 of this Law may not be abolished by agreement of the parties.

      Footnote. Article 69 as amended by the Law of the Republic of Kazakhstan dated 21.01.2019 No. 217-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

SECTION 3. POSSESSION AND (OR) USE OF STATE PROPERTY
Chapter 7. GENERAL PROVISIONS ON POSSESSION AND (OR) USE OF STATE PROPERTY.

Article 70. The order, bounds and conditions of possession and (or) use of state property

      1. Individuals and non-state legal entities shall be entitled to possess and (or) use state property for extracting by them of useful properties of property, as well as to obtain benefits in a form of income, accrual, fruits, offspring, and other forms.

      2. Possession and (or) use of state property shall be carried out in the order and within and on terms, that are established by this Law and other laws of the Republic of Kazakhstan.

Article 71. The grounds for possession and (or) use of state property

      1. Grounds for possession and (or) use of state property by individuals and non-state legal entities shall be recognized as follows:

      1) agreements and other civil-law transactions;

      2) administrative acts, that are creating civil law consequences in force of the legislation of the Republic of Kazakhstan.

      3) court decisions, that are establishing civil rights and obligations;

      4) events with that the legislation of the Republic of Kazakhstan shall connect the occurrence of civil-law consequences;

      5) universal succession or other succession in cases and order, that are provided for by the legislation of the Republic of Kazakhstan.

      2. The contract on transfer of state property in possession and (or) use shall be concluded in written form. Non-compliance with the written form of the contract on transfer of the state property into possession and (or) use shall entail its nullity.

      3. State property transferred into possession and (or) use shall be included to a register of state property in accordance with the rules of Chapter 15 of this Law.

      Footnote. Article 71 as amended by the Law of the Republic of Kazakhstan dated 27.02.2017 № 49-VI (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 72. The agreements on transferring of state property use

      1. State property may be transferred for possession on the basis of the following agreements:

      1) of tenancy (lease) of state property;

      2) on entrusted administration of state property;

      3) of gratuitous use (loan for use) of state property;

      4) turnkey contract;

      5) on transfer to use of state-owned natural resources.

      2. The transfer of state property to the possession shall be permitted on the basis of other civil law contracts in the cases and order, provided for by the laws of the Republic of Kazakhstan.

      3. Transfer for the use of strategic objects and state property, that is not subject to privatization, or property that may belong only to the state, shall be allowed under a public-private partnership contract, including a concession contract, a trust management contract and other contracts, directly provided for by the laws of the Republic of Kazakhstan.

      4. Transfer of state property to possession of individuals and non-state legal entities shall be carried out on basis of agreements or administrative acts in accordance with the rules of civil legislation of the Republic of Kazakhstan taking into account peculiarities and restrictions established by this Chapter.

      Footnote. Article 72 as amended by the Law of the Republic of Kazakhstan dated 31.10.2015 № 380-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 73. Subjects authorized for transferring of state property to possession

      An authority on transferring state property to possession shall have:

      1) with regard to republican property - an authorized body on state property;

      Note of the RCLI!
      This version of sub-paragraph 2) is valid from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (the current version until 01.01.2020 for the cities of district significance, villages, townships, rural districts with population of two thousand or less people see the archive version dated 25.12.2017 of the Law of the Republic of Kazakhstan “On state property” dated 01.03.2011 № 413-IV).

      2) in respect of communal property – a local executive body or in agreement with the local community meeting, the Akim’s administration of the city of district significance, village, township, rural district.

      Footnote. Article 73 as amended by the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (for the procedure of enforcement see subparagraph.1) of paragraph 1 of Art. 2).

Chapter 8. CERTAIN GROUNDS OF POSSESSION AND (OR) USE OF STATE PROPERTY

Article 74. The agreement of tenancy (lease) of state property

      1. To an agreement of property tenancy (lease) of state property shall be applied provisions of the Civil Code of the Republic of Kazakhstan with the peculiarities provided for by this Article, paragraph 4 of Article 114, by Articles 120, 145 of this Law.

      2. Object of property tenancy (lease) of state property may be movable and immovable property (things).

      3. The authorized body for state property management (lender (landlord) of the republican property shall transfer the republican property to the property rent (lease).

      Note of the RCLI!
      This version of part two of paragraph 3 is valid from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (the current version until 01.01.2020 for the cities of district significance, villages, townships, rural districts with population of two thousand or less people see the archive version dated 25.12.2017 of the Law of the Republic of Kazakhstan “On state property” dated 01.03.2011 № 413-IV).

      The communal property shall be transferred to the property rent (lease) by the local executive body or, in agreement with the local community meeting, by the Akim’s administration of the city of district significance, village, township, rural district (lender (landlord) of communal property). Unless otherwise established by this Law or other laws of the Republic of Kazakhstan, the transfer of state property to property lease (rent) shall be carried out in the manner determined by the central authorized body for state planning.

      4. Tenants (lessees) of state property shall be individuals and non-state legal entities, unless otherwise provided for by laws of the Republic of Kazakhstan.

      A right of use of state property may be transferred as contribution to charter capital of legal entities with state participation.

      5. The terms of the contract of property rent (lease) of state property shall be determined by the standard contract, approved by the authorized body for state planning, subject to the restrictions, determined by this Law.

      6. Is excluded by the Law of the Republic of Kazakhstan dated 02.07.2014 № 225-V (shall be enforced upon expiry of ten calendar days after its first official publication).

      7. Contract of property tenancy (lease) of state property may contain a condition about seizure of state property, that has been transferred in hire(leasing), to a tenant (lessee) in the cases directly provided for by Articles 105, 106, 120, 145 of this Law and other laws of the Republic of Kazakhstan.

      8. Alteration and termination of a contract of property lease (rent) of state property shall be carried out according to the rules of Articles 401 - 404, 556 of the Civil Code of the Republic of Kazakhstan.

      Use of state property that has been transferred under a contract of property tenancy (lease), not according to intended purpose, shall be material violation of a contract and basis for termination of a contract according to the rules provided for by the Civil Code of the Republic of Kazakhstan.

      9. The cost of inseparable improvements of the state property, made by the employer (lessee) with the consent of the lender (landlord) shall be compensated at the expense of the relevant budget in accordance with the budget legislation of the Republic of Kazakhstan.

      10. Particularities of conclusion of a contract of lease to individuals and legal entities of historical and cultural monuments, that are state property, shall be determined by Law of the Republic of Kazakhstan "On protection and use of objects of historical and cultural heritage".

      The contract on provision for the use of historical and cultural monuments of international and national significance, being the republican property, shall be concluded between the authorized body for state property and an individual or a legal entity in agreement with the authorized body for protection and use of historical and cultural heritage.

      The contract on provision for the use of historical and cultural monuments of international and national significance, being the communal property, shall be concluded between the local executive body of the region, the city of republican significance, the capital city and an individual or legal entity in agreement with the authorized body for protection and use of historical and cultural heritage.

      The contract on provision of historical and cultural monuments of local significance, being the republican property, shall be concluded between the authorized body for state property and an individual or a legal entity in agreement with the authorized body for protection and use of historical and cultural heritage.

      The contract for the provision of historical and cultural monuments of local significance, being the communal property, shall be concluded between the local executive body of the region, the city of republican significance, the capital city and an individual or a legal entity.

      A contract shall be considered terminated in the event of deprivation by the court decision of the person in whose use is the monument of history and culture, the right to use it if the monument of history and culture is threatened with destruction or damage.

      Footnote. Article 74 as amended by the Law of the Republic of Kazakhstan dated 04.07.2013 No. 131-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 02.07.2014 № 225-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 28.10.2015 № 368-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 11.07.2017 № 90-VI (for the procedure of enforcement see subparagraph1)of paragraph1 of Art. 2).

Article 75. The agreement on entrusted administration of state property

      1. To an agreement on entrusted administration of state property shall be applied the provisions of the Civil Code of the Republic of Kazakhstan with peculiarities stipulated in Articles 120, 145, 176 of this Law and other laws of the Republic of Kazakhstan.

      2. Object of an agreement on entrusted administration of state property shall be property complexes of state enterprises, securities, stakes of participating in charter capital, immoveable property, money, belonging to the state.

      Other state property acts as an object of an agreement on entrusted administration in cases stipulated by the Civil Code of the Republic of Kazakhstan and other laws of the Republic of Kazakhstan.

      3. The authorized body for the state property management (the founder of trust management of the republican property) shall transfer the republican property to the trust management.

      Note of the RCLI!
      This version of part two of paragraph 3 is valid from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (the current version until 01.01.2020 for the cities of district significance, villages, townships, rural districts with population of two thousand or less people see the archive version dated 25.12.2017 of the Law of the Republic of Kazakhstan “On state property” dated 01.03.2011 № 413-IV).

      Communal property shall be transferred to the trust management by the founder of the trust management of communal property, respectively, by the local executive body or in agreement with the local community meeting – by the Akim’s administration of the city of district significance, village, township, rural district.

      Unless otherwise provided for by this Law or other laws of the Republic of Kazakhstan, the transfer of state property to trust management shall be carried out in the manner, determined by the authorized body for state planning.

      4. An entrusted administrator of state property shall be individuals and non-state legal entities, unless otherwise provided for by laws of the Republic of Kazakhstan.

      5. A beneficiary under a contract of entrust administration of state property shall be the Republic of Kazakhstan or an administrative-territorial unit.

      6. The terms of the contract of trust management of state property shall be determined by this Law and other laws of the Republic of Kazakhstan. The authorized body for state planning shall approve the standard contract of trust management of state property.

      7. An entrusted administrator shall be entitled to dispose of or transfer immovable property that has been transferred to it under a contract of entrusted administration of state property, only in cases specified by laws of the Republic of Kazakhstan, an agreement on entrusted administration of state property or with a written consent of a founder of entrusted administration of state property. An entrusted administrator shall be entitled to administer a movable property, unless otherwise provided for by laws of the Republic of Kazakhstan or by a contract of entrusted administration of state property.

      8. An entrusted administrator shall be entitled to compensation of necessary expenses that has been made by him under an entrusted administration of state property, in order provided for by budget legislation of the Republic of Kazakhstan and other agreements of entrusted administration of state property.

      An entrusted administrator shall be entitled to compensation if it is provided for by the laws of the Republic of Kazakhstan or by a contract of entrusted administration of state property.

      9. An entrusted administrator shall render account to authorized state body that is the founder of entrusted administration of state property, on its activity in the terms and in the order established by a contract of entrusted administration of state property.

      10. In a contract of entrusted administration of state property, shall be set limitations of an entrusted administrator to dispose of state property.

      Transactions made by an entrusted administrator with a violation of limitations, established for him shall be recognized as invalid in accordance with the Civil Code of the Republic of Kazakhstan.

      Rights and responsibilities under the obligations that are arising from transactions concluded by an entrusted administrator of state property with exceeding granted him powers or violation of limitations established for him, shall arise to an entrusted administrator.

      11. An entrusted administrator shall carry out entrusted administration of state property personally.

      An entrusted administrator may appoint another person to take the steps necessary for managing of entrusted him of state property, if he is authorized for it under a contract of entrusted administration of state property or in voluntary to it for force of circumstances to secure the interests of a founder and does not have the ability to seek his guidance. Whereas, an entrusted administrator shall be responsible for actions of a chosen appoint as for his own actions.

      An entrusted administrator shall promptly notify a founder of assignment. A founder of entrusted administration of state property in this case shall be entitled to declare termination of entrusted property, by compensating to an entrusted administrator previously incurred charges, and in cases provided for by a contract of entrusted administration of state property, by compensating losses.

      The types and categories of state property for which tax liabilities on property tax, land tax and vehicle tax are to be fulfilled by an entrusted administrator shall be determined by the rules for transferring state property to trust management.

      12. A contract of entrusted administration of state property shall be amended and abrogated on grounds, provided for by the Civil Code of the Republic of Kazakhstan.

      A transfer of state property from one kind of state property to another or from one level of local government to another shall not abrogate entrusted administration of state property, unless otherwise provided by the Laws of the Republic of Kazakhstan or by a contract of entrusted administration of state property.

      13. Upon termination of a contract at instigation of one party, the other party shall be notified at least over the period of three months, unless different period shall not be stipulated by the laws of the Republic of Kazakhstan or by a contract of entrusted administration of state property.

      14. A contract of entrusted administration of state property may include conditions on seizure of state property that has been transferred to an entrusted administration, to an entrusted administrator, in cases directly provided for by Articles 105, 106, 120, 145, 176 of this Law and other laws of the Republic of Kazakhstan.

      Footnote. Article 75 as amended by the Law of the Republic of Kazakhstan dated 04.07.2013 № 131-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 29.09.2014 № 239-V (shall be enforced upon expiry of ten calendar days after its first official publication); dated 11.07.2017 № 90-VI (for the procedure of enforcement see subparagraph1) of paragraph 1of Art. 2); dated 02.04.2019 No. 241-VІ (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 76. The contract of gratuitous use of state property

      1. To a contract of gratuitous use of state property shall be applied provisions of the Civil Code of the Republic of Kazakhstan on a contract of gratuitous use (loan for use) with peculiarities stipulated in Articles 77, 120, 145 of this Law and other laws of the Republic of Kazakhstan.

      2. State property under a contract of gratuitous use of state property may be granted only in cases, stipulated by this Law and other laws of the Republic of Kazakhstan.

      3. A contract of gratuitous use of state property may stipulate conditions about seizure of state property that has been transferred for gratuitous use, to a borrower, in cases directly provided for by Article 120 of this Law and other laws of the Republic of Kazakhstan.

      Note of the RCLI!
      This version of paragraph 4 is valid from 01.01.2018 for the cities of district significance, villages, townships, rural districts with population of more than two thousand people in accordance with the Law of the Republic of Kazakhstan dated 11.07.2017 № 90-VI (the current version until 01.01.2020 for the cities of district significance, villages, townships, rural districts with population of two thousand and less people see the archive version dated 25.12.2017 of the Law of the Republic of Kazakhstan “On state property” dated 01.03.2011 № 413-IV).

      4. Any improvement of the state property, transferred under the contract of gratuitous use of state property shall be carried out with the written consent of the authorized body for state property or the local executive body or the Akim’s administration of the city of district significance, village, township, rural district. Upon termination of the contract of gratuitous use of the state property, the cost of inseparable improvements, made with the consent of the authorized body for state property or the local executive body or the Akim’s administration of the city of district significance, village, township, rural district, shall be reimbursed at the expense of the relevant budget.

      5. A contract of gratuitous use of state property in the cases of transferring to religious organizations for gratuitous use of religious buildings (constructions) and other property, that is owned by the state and that are historical and cultural monument, shall be concluded in accordance with the Law of the Republic of Kazakhstan " On protection and use of the objects of historical and cultural heritage".

      Footnote. Article 76 as amended by the Law of the Republic of Kazakhstan dated 11.10.2011 No.484-IV (shall be enforced upon expiry of ten calendar days after its first official publication); dated 11.07.2017 № 90-VI (for the procedure of enforcement see subparagraph.1) of paragraph 1 of Art. 2).

Article 77. Delegation of state land grants for free use

      State natural grants shall be provided for gratuitous use by the authorized body for investments in accordance with the Entrepreneurial code of the Republic of Kazakhstan.

      Footnote. Article 77 as amended by the Law of the Republic of Kazakhstan dated 29.10.2015№ 376-V(shall be enforced from 01.01.2016).

Article 78. Transfer of state property under the turnkey contract

      A transfer of state property under a turnkey contract shall be carried out in framework of execution of a customer, by state, on responsibilities in the assistance to a contractor in implementation of work in the amount and order, provided for by a turnkey contract.

Article 79. Transfer of state property under public-private partnership contract, including concession contract

      The transfer of state property under a public-private partnership contract, including a concession contract, shall be carried out in accordance with the laws of the Republic of Kazakhstan "On public-private partnership" and "On concessions".

      Footnote. Article 79 is in the wording of the Law of the Republic of Kazakhstan dated 31.10.2015 № 380-V (shall be enforced upon expiry of ten calendar days after its first official publication).

Article 80. The agreements on the transfer of natural resources for use

      A transfer for use of land plots, subsoil plots, water objects, and lands of the state forest fund shall be carried out on basis of relevant agreements in accordance with the laws of the Republic of Kazakhstan on each type of the property.

Article 81.The storage agreement and agreement on acceptance of state property for storage

      1. State property may be transferred to individuals and legal entities for safekeeping by storage agreement or agreement on acceptance of state property for storage. Rules of the Civil Code of the Republic of Kazakhstan on storage shall be applied to relations of storing state property with peculiarities stipulated in this Article.

      2. Storage of state property shall be carried out on basis of storage agreement or agreement on acceptance of state property (thing) for storage.

      Storage of state property may be imposed on any person that is capable of securing its safety.

      In cases specified by laws of the Republic of Kazakhstan, storage of state property may be carried out only be specialized organizations that are rendering services on storage as an entrepreneurial activity.

      3. Subject of storage of state property may be movable items.

      On protection of real estate this Article shall not be extended.

      4. Storage agreement and agreement on acceptance of state property for storage shall be concluded in written form. Conclusion of a contract shall be certified by a custodian by way of issuing to a depositor of a storage voucher, receipt, certificate, or other document signed by a custodian.

      5. A period of storage of state property shall be determined by laws of the Republic of Kazakhstan or storage agreements or agreement on acceptance of state property for storage. On expiry of periods of storage the storage agreements or agreement on acceptance of state property for storage shall be considered as concluded for the same period, unless otherwise provided for by laws of the Republic of Kazakhstan, relevant agreements or followed from nature of obligation to secure storage of state property.

      An authorized state body, that is a depositor or acting on its written proxy, shall be entitled at any time to require property (thing) to a custodian. In this case, a depositor shall be obligated to compensate to a custodian the damages that have been caused by early termination of the obligation, unless otherwise provided for by storage agreement or agreement on acceptance of state property for storage.

      6. A storage agreement and agreement on acceptance of state property for storage shall be compensated. Amount of remuneration to a custodian shall be determined by agreement of parties, and in cases established by laws of the Republic of Kazakhstan, in accordance with rates and tariffs.

      7. Unless otherwise provided by a storage agreement, a custodian shall not be entitles to transfer a thing for storage to the third person without consent of a depositor, except the cases when a custodian is involuntary to it by force of circumstances in interests of a depositor and deprived of opportunity to obtain his consent. On transfer of a thing for storage to the third person a custodian shall be obligated to notify a depositor. A custodian shall be responsible for actions of the third person to that he transferred a thing for storage as for their own.

      8. A custodian shall take all provided for by an agreement and other necessary measures to safeguard state property that has been transferred to him. A safe custody of state property shall be provided in accordance with technical standards and requirements on storage conditions and (or) protection.

      A custodian shall be responsible for deficiency o