A commission is working on analyzing the existing assets and liabilities that are currently owned by the state in order to propose a fair redistribution of both the assets and liabilities between the municipalities, cantons and the federal state.
These matters are addressed in various articles in the constitution. Including,
Relevant Constitution Article
Article 101 : Transfer of existing administrative institutions, Article 104 : Succession to National assets, Article 106 : Old debts, Article 111 : Federal assets, transformation of commissioned administration, Article 115 : Cantonal Asset and Federal Assets, Article 61 : Matters, Article 63 : Federal assets administration, Article 64 : Air transport and Federal Rail transport administration, and Article 67 : Administration of water resources
- As a general rule, each of the Administrative agencies, government entities, government-owned entities, or private entities rendering public service or utility (in the broadest meaning public or private) shall be split into four (4). Each Canton shall take its share of the “hard and soft” assets (including “its” employees).
- All Cantonal Citizens of any legacy admiration, public service, or utility shall be allocated to the budget of such Canton and shall become the share of this Canton in the distribution of the assets and liabilities of the incumbent public service.
- Each Canton will decide whether it needs to keep such employees (the Canton Citizens currently employed in the public sector and which have been moved to the public sector of the Canton) or let them go.
- The payment for dismembered and decentralized utilities shall be funded by each Canton from its Cantonal and municipal taxes.
- No Federal Tax, funding, grant, or loan is admissible to fund Cantonal utilities or public service.
- Administrative agencies and other institutions, public administration (including, but not limited to, the administration of justice) for which no agreement was reached on Cantonal allocation within 6 months following the date of this Constitution, shall be liquidated. The Federal Government, with or without the consent of the concerned Cantonal Governments, shall provide for their dissolution or liquidation and the Federal government is not authorized to budget for their expenses or incur any cost thereupon.
- Corporations and institutions under public law not directly subordinate to a Canton nor based on agreements between Cantons shall be cancelled and liquidated. No corporations and institutions under public or private law shall be maintained if (i) not directly subordinate to a Canton nor (ii) no agreements for which between Cantons has been reached.
- National assets shall, in principle, become federal assets. The general rule is to have those assets decentralized into four (4) separate operations/entities.
- Insofar as such assets were originally intended to be used principally for administrative tasks not entrusted to the Federation under this Basic Law, they shall be transferred without compensation to the authorities now entrusted with such tasks.
- To the extent that such assets are now being used for administrative tasks that under this Basic Law are now performed by the Cantons, they shall be transferred to the Cantons. The Federation may also transfer other assets to the Cantons.
- Assets that were placed at the disposal of the Republic of Lebanon by religious communities Wakf or municipalities or associations of municipalities shall revert to those Canton or municipalities or associations of municipalities insofar as the Federation does not require them for its own administrative purposes, in which case it shall negotiate their use with the Cantonal Government.
- Debts of the Republic of Lebanon, or of such other corporations and institutions established under public law that no longer exist, shall be discharged by the Federal Republic of Lebanon.
- Debts of public administrations or entities dismembered and allocated to Cantons shall follow the assets and the allocation to each Canton, pro rata.
- Paragraph (1) of this Article shall apply, mutatis mutandis, to debts of the Republic of Lebanese or its institutions as well as to debts of other corporations and institutions established under public law that are connected with the transfer of assets of the Republic of Lebanese to the Federation, Cantons, or municipalities, and to debts arising from measures taken by the Republic of Lebanese or its institutions.
- Any asset (i.e., road, pipeline, railway, communication asset, electrical grid, etc.) linking one Canton to another is a Federal Asset.
- Any Federal Asset can be administered on federal commission by the Cantons
- Any attempt by any Canton to limit or hinder the use of such Asset in or by another Canton or limit the access to another Canton is a direct infringement of this Basic Law and a mishandling of Federal Assets. Any limitation on the supply of energy through a grid or by blocking roads or by shutting pipelines or any similar action is direct infringement of this Basic Law and a mishandling of Federal Assets. The consequence of which triggers the right for the other Cantons to retaliate or to take legal action to seek reparation.
- At the request of any Canton, or upon an infringement by any Canton, the Federation shall assume administrative, executive, and operational responsibility for the federal assets, insofar as such asset lies within the territory of that Canton. Upon the occurrence of any such event, the assumption of direct management of any Federal Asset by the Federal authorities shall not require any specific decision from the Federal Government. No Canton can oppose the absence of such a specific decision to question the federal assumption of management of the Federal Assets.
- A Canton may take over, on commission of the Federation, the function of planning, constructing, and/or altering certain Federal Assets for which the Federation has assumed administrative responsibility.
- A Canton may take over the function of planning, constructing, and/or altering and/or managing certain Federal Assets vital for such canton and which the Federation is unable or unwilling to maintain in proper working order or if such federal assets is obstructed, deteriorated, or hampered.
- Land, natural resources, means of production, soft or hard infrastructure, and facilities that are solely within the boundaries of a given Canton and that are owned by Cantonal Governments are, in essence, the common ownership of the Canton Citizens and shall be defined as “Cantonal Assets.”
- Any transfer of any Cantonal Asset to a Federal public enterprise or another entity will need a special authorization from the Cantonal Parliament with a two thirds (2/3) majority approval.
- Any land, resource, means of productions, soft or hard infrastructure, or facilities that cross from one Canton another or connect one Canton to another is a Federal Asset, at least insofar as the connecting portion is concerned. Such Federal Asset (or portion thereof) cannot be alienated or disposed of or managed by Cantonal authorities except as otherwise expressly commissioned by the Federal Authorities.
- The federal financial administration, and the administration of certain federal assets like ports or airports shall be conducted by federal administrative authorities with their own administrative substructures.
- A federal law may establish Federal Army authorities and central offices for police information and communications.
- All government and/or social institutions (i.e., NSSF) whose jurisdiction extends beyond the territory of a single Canton shall be administered as federal corporations under public law. Canton authorities can set up similar institutions dedicated to operating exclusively within the boundaries of the Canton.
- New federal corporations and institutions under public or private law may be established by a federal law for matters on which the Federation has legislative power.
- Federal infrastructure and assets shall be managed by and under federal administration.
- By a federal law requiring the consent of the Federal Government, responsibilities for federal administration may be delegated to the Cantons acting on federal commission.
- Each Canton can solely invest in new assets, erect new facilities, and improve the use of the resources and/or infrastructure (solar, wind, water, communication, commuting, electricity, public transport, etc.) after due studies on the overall impacts thereof without the consent of the Federal Government and/or Federal Authorities.
- Such action may only be taken to the extent that such new investment is (i) funded by the resources of the Canton itself or by private investors, (ii) aligned with the overall sectoral policy of the Cantonal government, and (iii) not conflicting with sectoral policy adopted by the Federal Government.
- The Federation and/or the Canton and/or the Municipality (as the case may be) may make use of a company under private law to discharge its responsibilities.
- Federal Railways and Air transport shall be administered by federal authorities. Responsibilities for air and/or rail transport administration may be delegated by a federal law to the Cantons acting in their own right or on federal commission.
- Federal railways may be operated as enterprises under private law. Assets may remain the property of the Cantons under federal control.
- Laws enacted pursuant to paragraphs (1) and (2) of this Article shall require the consent of the Federal Government. The consent of the Federal Government shall also be required for laws regarding the dissolution, merger, or division of federal railway enterprises, the transfer of federal railway lines to third parties, or the abandonment of such lines.
- The Federation shall administer water resources. Each Canton shall be in charge of applying the federal water policy to the portion of water resources falling into its territory. The Federation may delegate the administration of water resources to the Canton on federal commission or handle directly the administration of water resources itself.
- In the administration, development and new construction of water-related assets (dams, power plants, etc.) shall be assured by the Federal authorities in agreement with the Cantons.
- Each Canton can improve the use of its resources, including water resources, and incept dams or power plants after due studies on the overall impacts thereof without the consent of the federal Government and/or Federal Authorities. Such action may be taken only to the extent that such new investment is(i) funded by the resources of the Canton itself and (ii) aligned with the overallsectoral policy of the Federal government.