The Chamber overruled the Senate and confirmed the new construction law

Prague – The Chamber of Deputies today overrode the Senate veto and confirmed the new construction law. The government hopes for faster construction proceedings and adherence to deadlines. According to the Chamber of Commerce, the law will assist citizens, entrepreneurs, and public investors in obtaining permits for constructions ranging from highways to family homes. Opponents warn, however, that the law will distance authorities from citizens and complicate the construction process. The law is set to take effect on July 1, 2023, but some changes will start to apply from January next year. The opposition coalition Together (ODS, KDU-ČSL, and TOP 09) and Pirates with Mayors indicate that if they govern after the October elections, they will change the currently ratified proposal.

The law has been in preparation for several years, and the Ministry for Regional Development (MMR), which proposed it, considers it fundamental. The approval of the law today was aided by the votes of six members of the Communist Party of Bohemia and Moravia (KSČM). A total of 104 deputies voted in favor of the law, with at least 101 votes needed. Only two deputies from the ruling Social Democrats supported it. The law still needs to be signed by President Miloš Zeman.

Some changes will take effect as early as January 2022. This will enable, for example, the establishment of a new state construction administration and the hiring of new personnel. Building authorities will fall under the Supreme Building Authority and will be organized similarly to the financial administration, for instance.

Representatives of both opposition coalitions consider the law to be poor; they believe it could jeopardize construction activities in the Czech Republic. They have urged the minister not to take steps towards the establishment of a central building authority before the October elections. ODS Vice-Chairman Martin Kupka stated that they are prepared to amend the construction law to avoid a multi-year limitation on construction activities. Therefore, the government should not take any irreversible steps according to KDU-ČSL deputy Marek Výborný. According to Pirate Party chairman Ivan Bartoš, Dostálová should not engage in any "wild actions" before the elections.

Minister for Regional Development Klára Dostálová (for ANO) repeatedly assured deputies that the state would not be building any new offices from scratch. The MMR emphasizes that the new law will ensure compliance with deadlines and strengthen the position of municipalities in spatial development. The law introduces a 30-day deadline for the opinions of affected authorities, which can be extended by another 30 days in particularly complex cases or when an on-site inspection is ordered.

The minister also assured deputies in response to their criticisms that the law does not interfere with the powers of self-governments, as construction proceedings are already an exercise of state administration. She pointed out that the law strengthens the position of municipalities since the municipality will always be a participant in the construction proceedings. According to her, authorities will not distance themselves from citizens, as the construction proceedings can be conducted electronically from home thanks to digitization.

The Union of Towns and Municipalities of the Czech Republic (SMO), however, like opposition deputies or senators, warns that state administration will become more distant from citizens. After the law's approval, the SMO stated that the law completely resigned from protecting public interests and distanced public administration from people outside large cities. According to them, the developers' lobby has won, and there is a real risk of an increase in illegal constructions. According to the union's chairman František Lukl, the wording that won in the Chamber is extremely expensive and advantageous only for the privileged. "The absurd cherry on top of this poorly executed cake is the fact that a bureaucrat dozens of kilometers away will decide on the felling of trees in a given municipality,” added Lukl.

Environmentalists also dislike the law, hoping it will be quickly repealed after the elections. According to the association of environmental organizations Green Circle, the law is bad and should be among the first to be repealed after the elections. Environmentalists criticize the regulation for prioritizing decision-making speed over project quality and limiting the powers of the Ministry of the Environment.

On the other hand, the Chamber of Commerce and the Association of Developers support the law. According to the chamber, which participated in the preparation of the law, it will help citizens, entrepreneurs, and public investors in obtaining building permits, from highways to family houses. It also reflects the conclusions of international analyses and recommendations from the World Bank. The same opinion is shared by the Union of Industry and Transport and the Union of Construction Entrepreneurs. The Vice-President of the Union of Industry and Transport of the Czech Republic, František Chaloupecký, stated after the law's adoption that both companies and citizens will finally see simpler and faster construction proceedings. "The proposal is not perfect, but it is a good foundation that will accelerate the entire process of issuing building permits," he said. According to him, the next step is to prepare the practical functioning of the offices according to the new law, including the digitization of processes.

The Association of Developers previously stated that if the new construction law were not approved, it would have a fatal impact on the entire Czech construction industry and would reduce the economy's competitiveness against neighboring countries. Developer Jan Řežáb, owner of JRD Development, said on Czech Television today that the construction law was the most neglected regulation that had not evolved for 30 years. He expects the new regulation to increase, for example, pressure for the expertise of building authorities and to stop the artificial inflation in the apartment market with more units becoming available. "It won't happen in a year or two; the change will take at least five years," he added. The Chairman of the Czech Chamber of Architects, Jan Kasl, expects an acceleration of the construction process, as the client will no longer have to go around the fire department, hygiene, the environment, and others; digital documents will be discussed simultaneously.

The Senate vetoed the law at the beginning of July with votes from all present senators. They primarily disliked the proposed transfer of building authorities under the state. This was also criticized by the parliamentary opposition. Opposition speakers warned mainly of a collapse of the construction proceedings, which they claim will occur with the planned establishment of the Supreme Building Authority. They referred to the law as a travesty and criticized the government for pushing it through with force.

The Communists did not support the law in the previous vote in the Chamber. They were bothered by the amendment that would allow residential rooms to lack direct lighting and ventilation. Minister Dostálová offered them that these conditions would be defined by a decree. KSČM Deputy Leo Luzar stated before deputies that this decree led part of the party to change their stance. However, some Communists still voted against it. "The law is unacceptable for me. I believe it is not in the interest of the Czech Republic to be adopted,” stated KSČM Deputy Stanislav Grospič.