Section 2: Creation

I. - Without prejudice to the provisions of article L. 5212-2, the perimeter of the public intercommunal cooperation establishment may be set by order of the State representative in the department when the communes are part of the same department or by joint order of the State representatives in the departments concerned in the opposite case :

1° Either, within a period of two months from the first deliberation transmitted, on the initiative of one or more municipal councils requesting the creation of a public establishment for inter-municipal cooperation;

2° Or on the initiative of the State representative(s), after receiving the opinion of the departmental commission(s) for inter-municipal cooperation concerned. This opinion is deemed negative if it has not been given within two months.

This decree lists the communes concerned.

As from notification of this decree, the municipal council of each municipality concerned has a period of three months to decide on the proposed scope and on the articles of association of the new public establishment for inter-municipal cooperation. If no decision is taken within this period, it is deemed to be favourable.

The perimeter of the public intercommunal cooperation establishment with its own tax status cannot be identical to that of a département.

II. - Without prejudice to the provisions of article L. 5217-1, the creation of the public establishment for inter-communal cooperation may be decided by decree of the State representative(s) in the department(s) concerned after agreement by the municipal councils of the communes concerned on the decree drawing up the list of communes. This agreement must be expressed by at least two thirds of the municipal councils of the communes concerned representing more than half of their total population, or by at least half of the municipal councils of the communes representing two thirds of the population.

This majority must necessarily include:

1° For the creation of a syndicate, the municipal councils of the communes whose population is greater than a quarter of the total population concerned;

2° For the creation of a public establishment for intercommunal cooperation with its own tax system, the municipal council of the commune with the largest population, where this is greater than a quarter of the total population concerned.

III. - The transfer of powers automatically entails the application of the provisions of the first three paragraphs of article L. 1321-1, the first two paragraphs of article L. 1321-2 and of articles L. 1321-3, L. 1321-4 and L. 1321-5.

However, when the public establishment for inter-communal cooperation is responsible for economic activity zones, the immovable property of the member municipalities may be transferred to it in full ownership, insofar as it is necessary for the exercise of this responsibility. The financial and asset conditions for the transfer of real estate assets are decided by joint decision of the decision-making body and the municipal councils of the member municipalities, in accordance with the qualified majority required for the creation of the establishment, no later than one year after the transfer of powers. In cases where the exercise of the competence is subject to the definition of the community interest, this period runs from the time of its definition. The same applies when the public establishment has jurisdiction over concerted development zones.

The public establishment for inter-communal cooperation is substituted ipso jure, on the date of the transfer of competencies, for the communes that create it in all their deliberations and all their acts.

Contracts are performed under the previous conditions until they expire, unless the parties agree otherwise. The substitution of a legal entity for contracts concluded by the communes does not entail any right to termination or compensation for the co-contractor. The municipality transferring the competence shall inform the co-contracting parties of this substitution.

IV. - Without prejudice to the provisions of article L. 5212-4, the decree of creation determines the seat of the public establishment of inter-municipal cooperation.