JOHN CARLOS I

KING OF SPAIN

To all who present it and understand it.

Sabed: That the General Courts have approved and I come to sanction the following Organic Law.

EXPLANATORY STATEMENT

I

Article 157 of the Constitution provides, in paragraph 1, of the general framework of the system of financing of the Autonomous Communities, which, pursuant to paragraph 3 of the abovementioned provision, has been developed by The Organic Law 8/1980, of 22 September, of Financing of the Autonomous Communities (LOFCA, from now on), the last modification of which has taken place by virtue of the Organic Law 3/1996, of December 27.

It is therefore the legal text of the legal text establishing the general legal system of the system of financing of the Autonomous Communities, under the protection of which have been approved and applied successive models from 1980 to now.

Well, on a proposal from the Government of the Nation, the Fiscal and Financial Policy Council of the Autonomous Communities, at its meeting of 27 July 2001, has approved a new system of autonomic financing, whose implementation It is necessary to carry out a series of reforms in the LOFCA, with this being the object of the present Organic Law. These reforms are set out below by a distinction of matters, and this order will also be followed later in the article of the Law.

II

One of the mechanisms of the system of financing of the Autonomous Communities is that constituted by the regime of cession of taxes of the State to the Autonomous Communities, a mechanism that appears expressly previewed in Article 157.1.a) of the Constitution and which has its basic organic development in Articles 10 and 11 of the LOFCA and to which Article 12 of the same rule, which it regulates, also as a consequence of the cited precept of the Constitution, must be added, the surcharges.

Since the initial promulgation of the LOFCA, the regime of cession of taxes from the State to the Autonomous Communities had a stable development and was applied according to the original configuration of its organic framework, without it having been need to proceed with the reform of this.

However, as a result of its meeting of 23 September 1996, the Fiscal and Financial Policy Council of the Autonomous Communities, on a proposal from the Government of the Nation, approved a new model for regional financing for The five-year period 1997-2001, one of whose basic inspiring principles was the assumption, by the Autonomous Communities, of an important level of fiscal responsibility.

to materialize this principle of fiscal co-responsibility, the model approved by the Fiscal and Financial Policy Council opted to make use of the mechanism of the transfer of state taxes to the Autonomous Communities. by the adoption of the following two measures: firstly, by extending the scope of the transfer to part of the Income Tax of the Physical Persons and, secondly, by conferring on the Autonomous Communities of the certain regulatory powers in relation to the taxes transferred, including the abovementioned Part of the Income Tax of the Physical Persons.

None of the two measures reviewed had a place in the framework of the original LOFCA, which is why it was necessary to introduce into that legal text-and this was done by the Organic Law 3/1996-the changes that (a) the appropriate framework for those in the general framework of the financing system of the Autonomous Communities.

At the present time, the principle of fiscal responsibility, the Fiscal and Financial Policy Council of the Autonomous Communities, at its meeting of 27 July 2001, also on a proposal from the Government of the Nation, has approved an extension of the same, which is why it is necessary to carry out a new reform of the LOFCA that of legal coverage to the agreements reached.

The extension of the principle of effective fiscal co-responsibility agreed by the Fiscal and Financial Policy Council of the Autonomous Communities takes place in two ways:

First, opening up the possibility of giving the Autonomous Communities new state taxes.

In the second term, it is also opening up the possibility of granting new regulatory powers to the Autonomous Communities in respect of taxes the transfer of which is already effective, as well as the possible assumption by them of regulatory powers. certain taxes which, from now on, may be transferred.

With respect to the taxes that are likely to be transferred to the Autonomous Communities (article 11 LOFCA), the susceptibility of the transfer of the Income Tax of the Physical Persons, of the Tax on the Heritage, of the Tax on Proprietary Transmissions and Documented Legal Acts, the Tax on Successions and Donations and the Taxes on the Game, on the same terms that are currently preached.

From the catalogue of taxes which are currently in force, the general taxation of sales at the retail stage and the excise duties at the retail stage of the product, with the exception of those collected by tax monopolies, " it seems to be more advisable for the LOFCA to consider that specific taxes are liable to be transferred, rather than containing a list grouping genera of tax-eligible taxes.

Appear as new, on the one hand, the possibility of ceding the Value Added Tax with partial character with the maximum limit of 35 per 100; from another, the possibility of ceding the Special Taxes of Manufacture- In the case of electricity-also on a partial basis and also with a ceiling of 40 per 100-and, finally, the possibility of giving up both the Electricity Tax and the Special Tax on Determinated Media Transport and the Tax on Retail Sales of Certain Hydrocarbons.

This is achieved by the desired "tax basket", which will undoubtedly contribute to the financing of the Autonomous Communities more in line with their economic reality and, of course, as previously said, more co-responsible.

As is natural, the abovementioned extension also requires an amendment to Article 10 of the LOFCA, since the points of connection of the taxes which are liable to be transferred are collected in a generic form.

With regard to the second way of extending the principle of co-responsibility for taxation-the allocation of new regulatory powers (Article 19 LOFCA)-the following approach is taken:

(a) First of all, as far as regulatory powers are concerned with regard to the essential elements of the taxes which are capable of being transferred, the general lines of the allocation of powers are defined as The regulations of the Autonomous Communities in relation to each of the various taxes that are capable of being transferred, delimitation is to be specified and concretized by the Law that regulates the transfer of taxes. The general principles to which the Autonomous Communities are to be subject in the exercise of the regulatory powers conferred on them are also formulated. The new features are in the set of new powers that can be attributed to the Autonomous Communities in this field.

In this paragraph it should be noted that the lack of allocation of regulatory powers in the Value Added Tax and the Harmonised Manufacturing Excise Tax is in line with the impossibility of the rules of the European Union.

b) Secondly, the scheme is maintained until now, under which powers are delegated to the Autonomous Communities in respect of the management, liquidation, collection, inspection and review of taxes. transferred, with the scope and conditions specified in the Law governing the transfer of taxes.

Finally, as far as surcharges are concerned, the current wording of Article 12 LOFCA is maintained, although it states that such surcharges may only be established in respect of temporary taxes on which the Communities Autonomous regions have regulatory powers in terms of rates.

III

In addition to the taxes handed down by the State and the surcharges, another of the mechanisms that are part of the system of financing the Autonomous Communities is that of "other units in the income of the State." is also expressly provided for in Article 157.1.a) of the Constitution and which has its basic organic development in Article 13 of the LOFCA, which must be subject to reform in order to provide adequate coverage to the results of the Agreement of the Fiscal and Financial Policy Council of 27 July 2001. In this sense, in the design of an integrated financing system which, moreover, is characterized by a significant increase in the fiscal capacity of the Autonomous Communities, the participation in income of the State is integrated into the Fund It is sufficient that, as a mechanism for closing the Financing System, it will cover the difference between the expenditure needs calculated for the Autonomous Community and its fiscal capacity, and its initial amount should be fixed in the respective Joint Commission. To this end, the inclusion in that fund of the participation of the cities of Ceuta and Melilla should be added.

IV

At the meeting of the Fiscal and Financial Policy Council of the Autonomous Communities of July 27, 2001, it was agreed to give a boost to the leveling assignments, on the basis of understanding that there are two services, education and health, on which no one discusses their character of fundamental services.

To this end the amendment of Article 15 of the LOFCA, which refers to the ordinary law the concretion of the minimum and means of delivery of the public services that will be able to give rise to the perception of the assignments.

V

The Interterritorial Compensation Fund is intended, as provided for in Article 158.2 of the Constitution, to correct inter-territorial economic imbalances and to make the principle of solidarity effective.

In compliance with that mandate, Article 16 of the LOFCA lays down the general principles and basic rules to which that fund should be adjusted, in accordance with Law No 29/1990 of 26 December 1990 on the Compensation Fund. Interterritorial, its operating mechanisms, establishing the Autonomous Communities of resources, the amount of the Fund, the criteria for distribution and the destination to be given to it.

In order to comply with the Agreement of the Fiscal and Financial Policy Council of the Autonomous Communities of 27 July 2001, appropriate regulatory changes are made to the purpose of giving entry into the Interterritorial compensation to the cities of Ceuta and Melilla, as well as to arbitrate a new Fund that can finance not only investment expenses, but also the current expenditure associated with that investment.

VI

The progressive cession of taxes to the Autonomous Communities and the assumption and exercise by these of normative competencies in them, makes it advisable to review the composition of the Economic and Administrative Courts.

The Economic and Administrative Courts, as organs responsible for, among other functions, carry out a review function of the acts dictated in matters of management, inspection and collection of state taxes, including Those who are transferred to the Autonomous Communities and, also, of the surcharges that they may establish, will continue to be part of the State Administration.

However, and as a result of the Fiscal and Financial Policy Council Agreement of 27 July 2001, the Autonomous Communities will participate in the tasks of the Regional Economic and Administrative Courts in the field of of temporary duties, through the incorporation of officials of the same quality as Vocals or Ponentes, which, if necessary, and depending on the size of the Court in question, shall form part of specific Chambers.

To this effect, this Organic Law introduces the necessary modifications to Article 20 of the LOFCA, in order to regulate positively the autonomic participation in these Courts.

VII

In conflict resolution, this law addresses several issues. First of all, the possibility that the Arbitration Board may be aware not only of the resolution of the positive conflicts, but also of the negative ones that may arise between the Autonomous Communities and between the Autonomous Communities and the State, in relation to the Temporary taxes. Secondly, the possibility for the Arbitration Board to be aware of the conflicts raised in relation to the transfer of taxes to the Autonomous Communities, not directly derived from the connection points and, finally, the definition of a a short procedure for small claims. These issues require amendment of Articles 23 and 24 of the LOFCA by this Organic Law.

Article first. Amendment of the Organic Law on the Financing of Autonomous Communities in respect of State taxes which are liable to be transferred to the Autonomous Communities.

1. New wording is given to Article 10 of the Organic Law 8/1980, of 22 September, of Financing of the Autonomous Communities, which will be worded as follows:

" Article 10.

1. The taxes are transferred by the State, the product of which corresponds to the Autonomous Community.

2. The transfer shall be deemed to have taken place by virtue of the express provision of the Staff Regulations, without prejudice to the scope and conditions of the transfer being laid down in a specific law.

3. The transfer of taxes by the State referred to in the preceding paragraph may be made in whole or in part. The cession shall be total if the recovery has been granted in respect of all the taxable events referred to in the relevant tax. The transfer shall be partial if any of the aforementioned taxable facts or part of the collection corresponding to a tribute has been transferred. In both cases, the assignment may include regulatory powers in terms of the law governing the transfer of taxes.

4. Without prejudice to the specific requirements laid down by the Law on Transfer:

(a) Where the taxes transferred are of a personal nature, their attribution to an Autonomous Community shall be made on the basis of the tax domicile of the taxable persons, except in the case of the tax on acquisitions due to death, in the which will address the causative.

(b) Where the taxes are levied on consumption, their allocation to the Autonomous Communities shall be carried out either on the basis of the place of consumption or on the basis of the place where the seller carries out the operation through establishments, premises or agencies, either on the basis of the consumption calculated on a statistical basis.

(c) Where the taxes transferred are taxed in real estate, their allocation to the Autonomous Communities shall be carried out on the basis of the place where the property is located. "

2. New wording is given to Article 11 of the Organic Law 8/1980, of 22 September, of Financing of the Autonomous Communities, which will be worded as follows:

" Article 11.

Only the following taxes may be transferred to the Autonomous Communities, under the conditions laid down in this Law:

(a) Tax on the Income of the Physical Persons, with partial character with the maximum limit of 33 percent.

b) Heritage tax.

c) Tax on Proprietary Transmissions and Documented Legal Acts.

d) Tax on Successions and Donations.

e) Value Added Tax, partial with the maximum limit of 35 percent.

(f) Special Manufacturing Taxes, with the exception of the Electricity Tax, on a partial basis with the maximum limit of 40 percent of each of them.

g) The Electricity Tax.

h) The Special Tax on Determinated Means of Transportation.

i) The Tribute to the Game.

j) Tax on Retail Sales of Certain Hydrocarbons. "

3. New wording is given to Article 12 of the Organic Law 8/1980, of 22 September, of Financing of the Autonomous Communities, which will be worded as follows:

" Article 12.

1. The Autonomous Communities may establish surcharges on the taxes of the State susceptible of disposal, except in the Tax on the Retail Sales of Certain Hydrocarbons. In the Value Added Tax and Excise Duty only recharges may be laid down where they have regulatory powers in respect of charge rates.

2. The surcharges provided for in the preceding paragraph may not be configured in such a way as to be liable to undermine the state's income from such taxes or to distort the nature or structure of such taxes. '

4. New wording is given to Article 19 of the Organic Law 8/1980, of 22 September, of Financing of the Autonomous Communities, which will be worded as follows:

" Article 19.

1. The management, liquidation, collection and inspection of their own taxes shall be the responsibility of the Autonomous Community, which shall have full powers for the implementation and organization of these tasks, without prejudice to the cooperation that may be be established with the State Tax Administration, especially where the nature of the tax so requires.

2. In the case of temporary taxes, each Autonomous Community may assume, in terms of the law governing the transfer of taxes, the following regulatory powers:

a) In the Income Tax of the Physical Persons, the rate regulation and deductions of the quota.

b) In the Tax on the Heritage, the determination of minimum exempt and rate, deductions and bonuses.

c) In the Tax on Successions and Donations, reductions in the tax base, rate, the fixing of the amount and coefficients of the pre-existing assets, deductions, bonuses, as well as the management and settlement.

d) In the Tax on Inheritance Transmissions and Legal Acts Documented, in the form of "Onerous Economic Transmissions," the regulation of the type of tax on leases, in the administrative concessions, in the transfer of movable and immovable property and the incorporation and transfer of real rights which fall on them, with the exception of the actual rights of guarantee; and in the form of 'Documented legal acts', the type of charge for the documents notarial. They will also be able to regulate quota deductions, bonuses, as well as the regulation of the management and settlement of the tax.

e) In the Taxes on the Game, the determination of exemptions, tax base, types of tax, fixed fees, bonuses and accrual, as well as the regulation of the management, liquidation, collection and inspection.

f) In the Special Tax on Determinated Means of Transportation, the regulation of tax rates.

g) In the Tax on Retail Sales of Certain Hydrocarbons, the regulation of lien rates, as well as the regulation of management, settlement, collection and inspection.

In the exercise of the normative powers referred to in the preceding paragraph, the Autonomous Communities shall observe the principle of solidarity among all Spaniards, in accordance with the provisions of the Constitution; they shall not take measures which discriminate by reason of the place of location of the goods, the origin of the income, the performance of the expenditure, the provision of the services or the conduct of the business, acts or acts; and shall maintain a effective overall tax pressure equivalent to that of the rest of the national territory.

Also, in the case of temporary taxes, each Autonomous Community may assume, by delegation of the State, the management, liquidation, collection, inspection and review, if any, of the same, without prejudice to the cooperation that may be be established between the two administrations, all in accordance with the provisions of the Law which establishes the scope and conditions of the transfer.

The provisions of the preceding paragraph shall not apply in the Tax on the Income of the Physical Persons, the Value Added Tax, or the Special Tax of Manufacture. The management, settlement, collection, inspection and review of these taxes shall take place as set out in the following paragraph.

The powers conferred on the Autonomous Communities in relation to the taxes transferred will be exercised by the State when it is necessary to comply with the regulations on tax harmonization of the European Union.

3. The administration, liquidation, collection, inspection and review, if any, of the other taxes of the State collected in each Autonomous Community shall correspond to the Tax Administration of the State, without prejudice to the delegation that may receive from it and from the collaboration that can be established, especially when required by the nature of the tribute. "

Article 2. Amendment of the Organic Law on the Financing of Autonomous Communities in matters of participation in state revenues.

New wording is given to Article 13 of Organic Law 8/1980, of 22 September, of Financing of the Autonomous Communities, which will be worded as follows:

" Article 13.

1. The Autonomous Communities and Cities with their own Autonomy Statute will participate, through their Fund of Sufficiency, in the income of the State.

2. The sufficiency Fund shall cover the difference between the expenditure needs of each Autonomous Community and City with its own Autonomy Statute and its fiscal capacity.

3. The initial value of the Fund for the sufficiency of each Autonomous Community and the City with its own Autonomy Statute shall be fixed in the Joint Committee for Transfers. In the following years, the Fund for the sufficiency of each Autonomous Community and the City with its own Autonomy Statute shall be determined on the basis of its initial value and the evolution of the state collection, excluding the value of the transfer, by those taxes to be determined by law.

4. The initial value of the Fund of sufficiency of each Autonomous Community and City with its own Autonomy Statute may only be reviewed in the following cases:

a) When new services are moved or extended or reviewed for previous transfer ratings.

b) When the cession of new taxes is effective. "

Article 3. Amendment of the Organic Law on the Financing of Autonomous Communities in the field of Leveling Assignments.

New wording is given to Article 15 of Organic Law 8/1980, of 22 September, of Financing of the Autonomous Communities, which will be worded as follows:

" Article 15.

1. The State shall guarantee the minimum level of the public services essential to its competence throughout the Spanish territory.

For the purposes of this article, fundamental public services will be considered education and health.

2. Where an Autonomous Community, with the use of the financial resources provided for in Articles 11 and 13 of this Organic Law, does not cover the minimum level of the provision of all the essential public services, which has assumed, it will be established, through the General Budget of the State, prior to the corresponding study and with specification of its destination, a complementary assignment whose purpose will be to guarantee the level of such benefit in the terms as stated in article 158.1 of the Constitution.

3. The minimum level of provision of the public services referred to in the preceding paragraphs shall be deemed not to be met where their coverage deviates, in the amount provided for in the law of the average level of the services in question. national territory.

4. If these allocations in favour of the Autonomous Communities have been repeated in a space of less than five years, the Government will propose, after deliberation by the Fiscal and Financial Policy Council, the Cortes General of the Sufficiency Fund provided for in Article 13 of this Organic Law.

5. Each Autonomous Community shall annually account to the General Courts of the use it has made of the budget allocations received and the level of benefit achieved in the services with which they are financed. "

Article 4. Amendment of the Organic Law on Financing of Autonomous Communities in respect of the Interterritorial Compensation Fund.

1. New wording is given to Article 4 (2) of the Organic Law 8/1980, of 22 September, of Financing of the Autonomous Communities, which will be worded as follows:

" 2. Where appropriate, the Autonomous Communities may also obtain revenue from:

(a) The allocations to be established in the General Budget of the State, in accordance with the provisions of this Law.

(b) Transfers of the Interterritorial Compensation Funds, the resources of which have the general charge of the State for the purposes set out in Articles 2, 138 and 158 of the Constitution. "

2. New wording is given to Article 16 of the Organic Law 8/1980, of 22 September, of Financing of the Autonomous Communities, which will be worded as follows:

" Article 16.

1. In accordance with the principle of interterritorial solidarity referred to in Article 158 (2) of the Constitution, a Compensation Fund shall be provided annually in the General Budget of the State, the resources of which are of the general charge of the State, as determined in Article 4.2.b) of this Law.

The Compensation Fund shall be distributed by the General Courts, in accordance with Article 74.2 of the Constitution, between Autonomous Communities and Cities with Autonomy Statute.

2. Independently of the Compensation Fund set out in point 1 above, a Supplementary Fund of the former will also be provided annually in the General Budget of the State, the resources of which will also have the general burden of Status.

3. The Compensation Fund shall be provided annually as follows:

(a) With an amount that may not be less than 22.5 percent of the basis for the calculation of public investment that has been approved in the General Budget of the State of the financial year, as defined in the Regulatory Law of the Interterritorial Compensation Funds.

b) Additionally, with 1.5 percent of the amount determined in the preceding letter and the amount that is legally assigned according to the variable '' City with Autonomy Statute ''.

c) Additionally, with 4.02 percent of the amount determined in subparagraph (a) above, and the amount that is legally assigned by the variable of '' outermost region ''.

Such amounts shall be used for investment expenditure in the comparatively less developed territories and shall be divided according to the criteria set out in the following number.

4. The amount resulting from the application of paragraph (a) of the preceding paragraph shall be distributed between the Recipient Autonomous Communities according to the following criteria:

a) The inverse of the per capita income.

b) The rate of population migrated in the last ten years.

c) The percentage of unemployment on the active population.

d) The territorial surface.

e) The island fact, in relation to the remoteness of the peninsular territory.

f) Other criteria that are estimated to be relevant.

The weighting of the above criteria and distribution rates will be established by Law and will be reviewable every five years.

The total amount resulting from the application of paragraph (b) of the preceding paragraph shall be distributed equally between the Cities with their own Autonomy Statute, in consideration of the specificity of their border status.

5. The Complementary Fund will be provided annually for each Autonomous Community and City with its own Autonomy Statute, with an amount equivalent to 33.33 percent of its respective Compensation Fund.

This amount will be used for investment expenses. However, at the request of the territories receiving the aid, it may be used for the purpose of financing, during the period determined by the Law, the operating costs associated with the investments financed from the Compensation Fund or from the Fund. Background.

6. Transfers from the Interterritorial Compensation Funds received must be used to finance projects of a local, regional, provincial or regional infrastructure, public works, irrigation, land planning, housing and collective equipment, improvement of rural habitat, transport and communications and, in general, those investments that contribute to reducing the differences in income and wealth in the Spanish territory. Notwithstanding the above, transfers received from the Supplementary Fund may be intended to finance operating expenses associated with the related investment projects previously.

7. The State, Autonomous Communities and Cities with the Statute of Autonomy, in order to balance and harmonize regional development, will determine, by common agreement, the distribution of powers existing at each moment, the projects in which (a) the investments made from the Compensation Funds materialize.

8. Each territory shall annually account to the General Cortes of the destination of the resources received from the Compensation Fund, as well as the state of implementation of the projects that are in charge of the Fund.

9. The possible surpluses of the Funds in an economic year will be affected to the same for the attention of the subsequent exercise projects.

10. Without prejudice to the above paragraphs, the investments made directly by the State and the State Public Sector shall be based on the principle of solidarity. "

3. New wording is given to Article 18 (2) of Organic Law 8/1980, of 22 September, on the financing of the Autonomous Communities, which shall be worded as follows:

" 2. The financial resources committed to provide the corresponding Autonomous Communities may be wholly or partly derived from transfers from the Interterritorial Compensation Funds to which they are entitled, in accordance with the established in this Law. "

Article 5. Amendment of the Organic Law on the Financing of Autonomous Communities for the participation of the Autonomous Communities in the Economic and Administrative Courts.

New wording is given to Article 20 of Organic Law 8/1980, of 22 September, of Financing of the Autonomous Communities, which will be worded as follows:

" Article 20.

1. The knowledge of the complaints lodged against the acts dictated by the respective administrations in the field of taxation, whether in them questions of fact or of law, will correspond:

(a) In the case of the own taxes of the Autonomous Communities, their own economic and administrative bodies.

(b) In the case of temporary taxes, to the economic-administrative organs of the State.

(c) In the case of surcharges established on State taxes, to the economic and administrative organs of the State.

2. The provisions of paragraph 1 (b) and (c) shall be without prejudice to the participation of the Autonomous Communities in the Regional Economic and Administrative Courts of the State.

3. Decisions of the economic and administrative bodies, both of the State and of the Autonomous Communities, may in any case be the subject of a judicial-administrative appeal, in accordance with the terms laid down by the jurisdiction. "

Article 6. Amendment of the Organic Law on the Financing of Autonomous Communities in the field of conflict resolution.

1. New wording is given to Article 23 of the Organic Law 8/1980, of 22 September, of Financing of the Autonomous Communities, which will be worded as follows:

" Article 23.

1. The conflicts arising in the application of the connection points of the taxes shall be settled by an Arbitration Board.

2. The authorities which consider the performance of the tax in question, as well as those deemed to be competent in the management, inspection or collection procedures, may promote the conflict. respective, according to the applicable connection points.

3. In the same way, they may promote the conflict for administrations which do not consider the performance of performance on their territory or which are not considered competent in the management, inspection or collection procedures when another administration maintain, in respect of those, that the performance or that they are competent in those procedures should be considered to be in their territory.

4. The powers of the Arbitration Board shall be extended to the resolution of conflicts which may arise between administrations on the ownership of performance or of management, inspection or collection powers, as a result of the territorial application of the rules or agreements for the transfer of taxes to the Autonomous Communities.

5. Disputes shall be resolved by the procedure to be laid down, in which the person concerned shall be heard. Such a procedure, where none of the two liquid quotas subject to conflict exceeds EUR 125,000, may consist of a simplified procedure.

6. Conflicts will be resolved by the following organs:

(a) Case of the dispute occurring between the Administrations of the State and of one or more Autonomous Communities, or of these Communities, shall be settled by the Arbitration Board which is regulated in the following article.

(b) If in the conflict the Administration of other territories other than those referred to in the preceding letter intervenes, a representative of the State Administration shall be replaced by another appointed by the Executive Council or Government of the Autonomous Community.

7. Where the dispute arises, the authorities concerned shall notify the parties concerned, which shall determine the interruption of the prescription, and shall refrain from any subsequent action.

However, where definitive settlements have been carried out by any of the Administrations concerned, those settlements will have full effects, without prejudice to the possibility of the review of the Tax law is provided for in the General Tax Law.

8. The Arbitration Board shall, in accordance with the principles of economy, speed and effectiveness, resolve in accordance with the principles of economy, speed and effectiveness, all matters offered by the file, whether or not they have been raised by the parties or those interested in the dispute, including running formulas.

9. The decisions of the Arbitration Board shall be enforceable and shall be contested in the administrative-administrative procedure. "

2. New wording is given to Article 24 of the Organic Law 8/1980, of 22 September, of Financing of the Autonomous Communities, which will be worded as follows:

" Article 24.

1. The Arbitration Board referred to in paragraph 6. (a) the previous article shall be chaired by a jurist of recognized prestige, appointed for a period of five years by the Minister of Finance, on a proposal from the Fiscal and Financial Policy Council of the Autonomous Communities. They will be Vowels of this Board:

(a) When the dispute arises between the State and one or more Autonomous Communities, four representatives of the State, appointed by the Minister of Finance, one of whom will act as Secretary, and four representatives of the each Autonomous Community in conflict, designated by the corresponding Government of these.

(b) When the dispute arises between Autonomous Communities, four representatives of the State and four of each Autonomous Community in conflict, appointed by the corresponding Government of the Autonomous Communities, acting as Secretary of State. representative of the State.

2. In all matters relating to the operation, convocation, meetings and arrangements for the adoption of agreements of the Arbitration Board, the provisions of Chapter II of Title II of Law No 30/1992 of 26 November 1992 on the subject of collective bodies shall be subject to the provisions of Chapter II of Title II of the Treaty. Legal status of public administrations and the common administrative procedure.

3. In the simplified procedure, the chair of the Arbitration Board shall act as the resolution body. "

Item seventh. Amendment of the Organic Law on the Financing of Autonomous Communities in the field of general principles.

A new point (e) is added to Article 2 (1) of Organic Law 8/1980 of 22 September of Financing of the Autonomous Communities, which shall be read as follows:

" e) Institutional loyalty, which will determine the assessment of the impact, positive or negative, that can be assumed by the legislative State in the field of taxation or the adoption of measures of general interest, which (i) may, in the case of the Autonomous Communities, be liable for expenditure not intended for the date of approval of the existing system of financing, and which must be the subject of an annual assessment as to their impact, both in terms of revenue as expenditure, by the Fiscal and Financial Policy Council of the Autonomous Communities. "

Additional disposition first. Leveling assignments.

The modification introduced in Article 15 of the Organic Law 8/1980 of 22 September, of Financing of the Autonomous Communities, will only be applicable to the deviations that occur in the System of Financing of the Autonomous Communities which enters into force on 1 January 2002.

Additional provision second. Allocation to the Autonomous Community of the Canary Islands of normative powers in the Indirect General Tax.

In the Indirect General Tax Canarian, the Autonomous Community of the Canary Islands will have regulatory capacity to regulate:

(a) The formal obligations of the Tax.

(b) The tax rates within the limits set by Article 27 of Law 20/1991 of 7 June, amending the tax aspects of the Fiscal Economic Regime of the Canary Islands.

Single end disposition. Entry into force.

This Law shall enter into force on the day following that of its publication in the "Official Gazette of the State", although it shall have effect from 1 January 2002.

Therefore,

I command all Spaniards, individuals and authorities, to keep and keep this Organic Law.

Madrid, December 27, 2001.

JOHN CARLOS R.

The President of the Government,

JOSÉ MARÍA AZNAR LÓPEZ