CHAPTER I: Local authorities

Communes and syndicates of communes may directly operate services of public interest of an industrial or commercial nature. Operations likely to be managed by private companies, either by application of the law of 2-17 March 1791, or, with regard to the operation of communal public services, by virtue of concession or affermage contracts, are considered to be industrial or commercial. .

Communes and syndicates of communes may directly operate services of public interest of an administrative nature for which specific public establishment status is not imposed.

Municipal councils determine which services they intend to operate on a public-private basis and lay down the provisions that must be included in the internal regulations for these services.

The régies mentioned in articles L. 2221-1 et L. 2221-2 are endowed with: 1° Either legal personality and financial autonomy, if the municipal council or the syndicate committee has so decided; 2° Or financial autonomy alone. 2° Either legal personality and financial autonomy, if the municipal council or the syndicate committee has so decided; 3° Or financial autonomy alone. 4° Either legal personality and financial autonomy, if the municipal council…

The budgetary and accounting rules of the communes are applicable to the régies municipales, subject to the modifications provided for by the decrees of the Conseil d’Etat mentioned in articles L. 2221-10and L. 2221-14. Revenue and expenditure for each régie are handled by a public accountant.

The provisions of Article L. 1618-2 are applicable to the régies mentioned in Article L. 2221-1 subject to the following provisions: a) They may waive the obligation to deposit with the State funds that come from cash surpluses resulting from their business cycle; b) The régies responsible for managing a public service of an industrial and commercial nature mentioned in Article L. 2221-10 may deposit their funds, after express authorisation…

In all parts of their service, municipal régies are subject to audits by inspection bodies authorised for this purpose.

Decrees in the Council of State determine the conditions for applying articles L. 2221-1 to L. 2221-6. They specify, in particular, the measures to be taken in the event that the operation of a local authority compromises public safety, as well as in the event that the local authority is unable to provide the service for which it is responsible.

Municipalities which had municipal boards before 28 December 1926 have the option of retaining the form of simple or direct board in force unless they prefer to accept the provisions of this chapter. The provisions of article L. 2221-6 are applicable to these régies.

The provisions of this chapter do not apply to funds managed exclusively for the purposes of hygiene or assistance and comprising only revenue in mitigation of expenditure. .