New Law - The 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.
Approved by the Government
Amendment to the Business Activity Law
Purpose: Allows entrepreneurs setting up their first business to register activity in three different government offices simultaneously, foresees reparation proceedings for individual entrepreneurs in danger of bankruptcy and changes regulations governing the National Court Register (KRS) to speed up registration procedures. The court would be obliged to make a decision within 14 days of filing registration forms. In cases in which it could demand provision of missing information, the court would have seven days to record new information submitted.
Affected: All companies
Timing: Approved by the government in July. Awaits consideration by the lower house.
Amendment to the Consumer Protection Act
Purpose: Eliminates problems with interpreting existing regulations governing the ability of consumers to resign from contracts signed outside a company's place of business within 10 days and the return of benefits gained upon resignation from such contracts. Companies would have 14 days to return prepayments while consumers would have the same amount of time to return products upon resignation from contracts signed at a distance.
Affected: Companies in which contracts are signed outside the place of business
Timing: Approved by the government in July. Awaits consideration by the lower house.
The Sejm
Amendment to the Commercial Code
Purpose: Harmonizes Polish law with the EU's commercial directives, introduces changes in accounting law necessary for implementing International Accounting Standards, simplifies accounting requirements, eliminates conflicting regulations within the Commercial Code itself and conflicts with other acts. Lastly, the amendment would implement changes proposed by the business community, such as new methods for determining the value of assets and liabilities.
Affected: All companies
Timing: Government approval and submission to parliament in April. First reading in July.
Amendment to Radio and Television Act
Purpose: Increases the authority of the National Broadcasting Council (KRRiTV), improves the privileged position of the public broadcaster TVP, prevents private capital concentration and harmonizes Polish law with EU norms governing programming quotas and foreign capital.
Affected: Broadcasters, publishers, digital platform operators, cable TV operators, electronic equipment producers
Timing: Government approval and submission to parliament in March and first reading in April 2002. Second reading in June 2003.
The Senate
Bill on Hiring Temporary Employees
Purpose: Creates a legal framework for temporary employment agencies. The bill would require agencies to sign employment contracts (rather than civil contracts) with temporary employees who are not students or retired, outline conditions for granting such employees vacation time, limit the time a temporary employee can work on a single assignment to 12 months over the course of three years and ban companies which undergo mass layoffs from hiring temps for six months afterward.
Affected: Temporary employment agencies, companies seeking temporary help
Timing: Approved by the government and submitted to parliament in February. First reading in March. Second and third readings in July. Awaits consideration by the Senate.
Bio-Fuel Market Act
Purpose: Introduces fuel containing 3.5 percent - 5 percent of bio-components as of October 1, 2003 and fuel containing 4 percent - 5 percent of bio-ethanol as of 2004. Production and storage of bio-components would require permits issued by the Agriculture and Rural Development Ministry. The bill also defines the raw materials used to produce bio-fuels as contracted agricultural raw materials, raw grain alcohol and raw rapeseed oil. Companies producing bio-fuels would need to sign contracts with farmers supplying raw materials for at least five years. By October 31 of each year the government would need to determine the required amount of bio-components in fuel for the next calendar year via ordinance. Retail sales of bio-fuels would require specially marked distribution pumps informing of the percentage of bio-components in fuel.
Affected: Fuel producers, wholesalers and retailers, producers of bio-components, automobile producers, transport companies
Timing: The government and a group of parliamentarians from the Polish Peasant Party (PSL) submitted two competing bills this spring. During legislative work the two bills were combined into a single piece of legislation. First reading in April, second reading in June and third reading in July. Awaits consideration by the Senate.
Approved Legislation
Law on Payment Deadlines
Purpose: Discourages late payment for delivered goods or services and harmonizes Polish and EU law. The bill would introduce mandatory penalty interest for contracting parties who fail to pay for goods or services delivered as of the 31st day after an invoice is delivered. All contracts seeking to limit this right to mandatory penalty interest would be null and void. Lastly, the bill would simplify the process of securing court orders for payment of overdue accounts receivable.
Affected: All companies
Timing: In July the Senate proposed no amendments to the version approved by the lower house. Awaits the president's signature.
Amendment to the Accounting Law
Purpose: Harmonizes Polish and EU law by eliminating the obligation of foreign branches of banks and other financial institutions to announce financial results achieved in Poland. At the same time the amendment would obligate foreign branches to announce the consolidated financial results of parent companies.
Affected: Foreign branches of banks and other financial institutions
Timing: In July the Senate proposed no amendments to the version approved by the lower house. Awaits the president's signature.
Act on Reorganizing the Fiscal Administration
Purpose: Completes consolidation of the tax authorities and further increases their effectiveness in collecting taxes. This vast bill amends 27 legal acts currently in effect. It creates separate tax offices to deal with large companies and those with foreign capital, expands the customs administration's powers to excise tax collection and introduces European standards to Poland's fiscal administration.
Affected: Large companies (annual turnover exceeding €5 million), foreign companies, companies with foreign capital, holding companies, banks, importers
Timing: Signed by the president in July. Awaits publication in the Dziennik Ustaw.
Postal Services Act
Purpose: Harmonizes Polish and EU law by moving in the direction of market liberalization. It increases access to universal postal services while improving their quality. The act gives the state postal service Poczta Polska a monopoly on handling packages and mail weighing up to 350 grams in 2003 and gradually reduces this weight to 50 grams in 2006. Poczta Polska may also serve as a financial intermediary and provide most banking services.
Affected: Courier companies, banks in small towns
Timing: Signed by the president in July. Awaits publication in the Dziennik Ustaw.
Amendment to the Penal Code
Purpose: Introduces more sever sanctions for corruption and simplifies confiscation of property procured through criminal activity. The amendment will break the solidarity of those giving bribes and public officials accepting them by granting those giving bribes immunity if they report to the police that a public official demanded and accepted a bribe.
Affected: The regulatory and business environment
Timing: Published in the Dziennik Ustaw in June.
