New Law - Early Warning System
The Business Journal's acclaimed twice-monthly update on legislation that will affect your company, prepared exclusively by Ewa Pawłowska of CEC Government Relations. She can be e-mailed at ewap@cec.com.pl.
Awaiting Government Approval
Motorway Financing Bill
Purpose: Raises the revenue necessary to match funds available from the European Union to build a motorway system by introducing a petrol fee of zł. 0.05-zł. 0.09 per liter. Petrol importers and producers as well as retailers of liquid gas would pay this new fee. According to infrastructure ministry sources, the petrol fee would most likely be introduced in two phases: first, zł. 0.05 per liter; then an increase to zł. 0.09 per liter.
Affected: Importers and producers of petrol and retailers of liquid gas
Timing: Awaits interministerial consultations and consideration by the cabinet.
Approved by the Government
Amendment to the Public Aid to Companies Law
Purpose: Harmonizes Polish and EU law by introducing new requirements for companies applying for aid as well as new deadlines for investment aid applications falling in March of every year, with the exception of 2003. Companies would be obliged to provide 25% of the capital necessary for proposed investment projects and be in business at least five years on the day that the aid is granted. In cases where companies oblige themselves to create new jobs in exchange for aid, they would need to maintain employment for a minimum of five years. Last, the amendment would introduce legal definitions for industrial parks and technology parks.
Affected: Potential seekers of government aid for investment projects and development, industrial parks and technology parks
Timing: Approved by the government in May. Awaits consideration by the Sejm.
The Sejm
Amendment to the Labor Code
Purpose: Allows the courts to settle conflicts concerning collective labor agreements about the legality of layoffs and termination of collective labor agreements. This amendment would determine procedures and a timetable for resolving conflicts through the court system.
Affected: Companies that have labor unions
Timing: Submitted by a group of parliamentarians in March. Awaits consideration by the Sejm.
Amendment to the Road Transport Law
Purpose: Harmonizes Polish and EU law by making regulations regarding transport licenses, employee professional qualifications and required financial conditions for transport firms more precise.
Affected: Road transport companies, companies transporting people or goods and courier companies
Timing: Government approval, submission to parliament and first reading in October. Awaits its second reading after debate in committee.
Amendment to the Excise Tax Law
Purpose: Amends article 37 of the Excise Tax Law concerning excise on cigarettes. It would introduce a single percentage of the maximum retail price and flat rate on all cigarettes - regardless of content or country of origin - of 27.5% and zł. 53.50 per 1,000 units. The amendment would also mandate that all future changes in excise tax would affect both the percentage of the maximum retail price and flat rate equally. Last, it would introduce a timetable for increasing excise tax on cigarettes to the minimum rate in the EU of €64 per 1,000 units by 2008. For domestic producers, this means that excise tax will ultimately increase 2.5 times.
Affected: Tobacco companies
Timing: Submitted by a group of parliamentarians in March. First reading in May.
Insurance Bill
Purpose: Harmonizes Polish and EU law, defines insurance activity more precisely to better protect the insured and the insurance market and provides a legal definition of actuaries. It would introduce regulations governing the sale of insurance products via the Internet.
Affected: Insurance companies and website designers
Timing: Final amendments proposed by the Senate in May await consideration by the Sejm.
Bill on Insurance Intermediaries
Purpose: Provides a definition of insurance intermediaries, establishes regulations governing their activity and determines the range of products they are allowed to sell. It would replace licenses for providing agency or brokerage services with registrations.
Affected: Insurance companies, agents and brokers
Timing: Final amendments proposed by the Senate in May await consideration by the Sejm.
Amendment to the Telecommunications Act
Purpose: Harmonizes Polish and EU law by expanding the current definition of basic telecommunications service packages, allowing subscribers to select operators, giving telecom operators access to the infrastructure of dominant operators for a fee and permitting subscribers to retain telephone numbers despite changes in residence. This draft amendment would also establish clear guidelines for refusing registration of telecommunications companies.
Affected: Stationary and mobile telephone operators
Timing: Final amendments proposed by the Senate in May await consideration by the Sejm.
Amendment to the Consumer Loan Act
Purpose: Clarifies regulations on consumer loans for which banks must provide a real annual percentage rate, excludes all loans taken to purchase real estate from the consumer loan category and extends the time consumers have to withdraw from signed loan agreements to 10 days.
Affected: Banks and other lending institutions
Timing: Final amendments proposed by the Senate in May await consideration by the Sejm.
The Senate
Amendment to the Act on Tenant Rights
Purpose: Allows for the lease of housing for a predetermined or undetermined amount of time. According to currently binding regulations, leases may be signed with tenants for a minimum of three years and may be terminated for three reasons, namely the return of the owner of the property from being away, end of schooling or end of employment in a particular capacity.
Affected: Housing owners and real estate investors
Timing: Government approval, submission to parliament and first reading in July. Second and third readings in May. Awaits consideration by the Senate.
Postal Services Act
Purpose: Harmonizes Polish and EU law by moving in the direction of market liberalization. The act would give the state postal service, Poczta Polska, a monopoly on handling packages and mail weighing up to 350 grams in 2003 and gradually reduce this weight to 50 grams in 2006. Poczta Polska could also serve as a financial intermediary and provide a majority of banking services.
Affected: Courier companies and banks in small towns
Timing: Government approval, submission to parliament and first reading in July. Second reading in April and third reading in May. Awaits consideration by the Senate.
Amendment to Law on National Referenda
Purpose: Facilitates the public announcement of official voter turnout figures collected at the polls on the first day of the two-day EU accession referendum in June. This is intended to mobilize those who do not vote on the first day to vote on the second. The constitution requires a voter turnout of 50% for any referendum to be legally binding. At the same time, market research companies would not be allowed to make their own projections public.
Affected: The country's plans to accede to the European Union
Timing: Submitted by a group of parliamentarians from the Civic Platform (PO) party in May when its first, second and third readings took place. Awaits consideration by the Senate.
Approved Legislation
Law on Preparing and Building National Roads
Purpose: Simplifies procedures for preparing and building a national road network by speeding up the construction of motorways, expressways and ring roads around cities. It will determine conditions necessary for road location as well as rules for purchasing real estate and construction.
Affected: Banks, engineering companies and construction companies
Timing: Signed by the president in April. Awaits publication in the Dziennik Ustaw.
