Legislative Amendments in Relation to the Termination of the State of Emergency in the Republic of Bulgaria

On 12 May 2020 the General Assembly definitively adopted the Bill for Amendment and Supplementation of the Health Act by means of which many legislative amendments were introduced in relation to the state of emergency in the Republic of Bulgaria and the consequences thereof. The present article shall briefly review the most essential changes.

 I. Amendments to the Health Act

 1. Firstly, the introduction of a new concept shall be provided for – “extraordinary epidemic situation”, which shall practically replace the state of emergency, whose term expires on 13 May 2020 and shall not be prolonged.

The extraordinary epidemic situation shall be declared for a particular period of time by means of a decision of the Council of Ministers upon proposal by the Minister of Health based on an assessment for the existence of epidemic risk, carried out by the Chief Health Inspector of the State. The latter assessment of the existence of epidemic risk shall be carried out in observance of eight criteria explicitly enumerated in the law and shall determine whether there is a direct threat for the life and health of the citizens.

The extraordinary epidemic situation will allow for the introduction of temporary anti-epidemic measures on the territory of the country or a particular region with the aim of protection of the life and health of citizens. Such measures may include, for example:

• prohibition on entering the territory of the country by citizens of other countries with an exception for people who have permanent, long-term or continuous residence permits for the territory of the Republic of Bulgaria and the members of their families;
• temporary limitation on the travel within the territory of the country;
• temporary suspension or limitation of the exploitation or the regime of work of objects with public function and/or other objects or services, delivered to the citizens.

The measures in question shall be introduced by means of an order of the Minister of Health issued under Art. 73 of the Administrative Proceedings Code (a general administrative act issued in urgent situations). Measures can also be implemented for the territory of a particular region, municipality or settlement (village, town or city) by means of an order of the director of the respective Regional Health Inspectorate, after being coordinated with the Chief Health Inspector of the State. The orders shall be published on the internet page of the Ministry of Health, correspondingly - on the internet page of the Regional Health Inspectorate and shall be subject to preliminary enforcement.

The law provides for an opportunity for any interested party to appeal the above-mentioned orders. In the event of appeal, the announcement for the appeal, as well as the ruling of the court for suspension of the effect of the order (in case that the court has issued such) shall be immediately promulgated in the next issue of State Gazette.

2. Another amendment in the Health Act provides for that the sanctions for violations of the anti-epidemic measures, which were initially introduced with an effect for the duration of the state of emergency, will also remain applicable during a declared extraordinary epidemic situation.

II. Amendments in Other Acts

The Transitional and Conclusive Provisions of the Bill for Amendment and Supplementation of the Health Act contain many provisions amending and supplementing other normative acts. Below the more essential ones shall be reviewed.

1. Amendments to the Act for the Measures and Actions During the State of Emergency Declared with Decision Dated 13 March 2020 of the National Assembly (AMADSE)

A. Firstly, due to the fact that AMADSE shall remain in effect after the termination of the state of emergency, an amendment to the name of the latter normative act shall be introduced, which shall be changed to “Act for the Measures and Actions During the State of Emergency Declared with Decision Dated 13 March 2020 of the National Assembly and Overcoming of the Consequences Thereof”.

B. Subsequently, amongst the amendments it is provided for that the limitations within notary proceedings shall be repealed – they shall cease to apply after the termination of the state of emergency.

C. The largest number of amendments includes prolongations of the terms of certain measures initially introduced by AMADSE. Amongst them are:

i. A two months prolongation counted as of the termination of the state of emergency for the following:

• The suspension of all public sales and entries into possession, announced by the public and private enforcement agents against natural persons. After the expiry of the two-month term, they shall be re-scheduled with no due fees and expenses. A possibility is provided to re-schedule the public sales and the entries into possession before the expiry of this term – upon request by the natural person, against whom they are initiated.;
• The prohibition for imposition of distraints on bank accounts of natural persons and medical institutions, as well as distraints on labour remunerations and pensions, as well as for any encumbrances imposed over medical apparatus and equipment, inventory of moveable property and real estate, owned by natural persons, with the exception of cases concerning maintenance payments, damages arising out from torts and claims for labour remunerations;
• Also extended is the term in which the consequences of late payment of monetary obligations of natural persons or legal entities (i.e. interest and penalties for late payment, premature repayment and contract cancellation upon non performance) shall not apply. This extension, however, shall be only applicable towards monetary obligations towards financial institutions other than banks and their subsidiaries. Therefore, counted as of 14 May 2020, the consequences of delay in payments under credit contracts, concluded with banks and their subsidiaries shall once again apply.
• The possibility for remote meetings of state and local bodies, councils, committees, commissions, including bodies for management or control of funds, accounts and others, which are not legal entities shall remain;
• The possibility for courts (incl. the Commission for Protection of Competition) to remotely carry out open sessions;
• The possibility for the state and municipalities to reduce or remit partially or in whole the instalments under rent agreements or for usage of real estate, which is state or municipal property, due by natural persons or legal entities, who have limited or suspended their activity. Another change in this regard is that it is now explicitly provided for that the limitation or suspension of activity shall be proven by means of financial and other documentation;
• The possibility for employers to assign work at home or remote work to employees without their consent;
• The possibility for employers to grant up to fifty percent of the annual paid leave of employees without their consent;
• The bodies managing the funds under European structure and investment funds shall be entitled to unilaterally amend contracts for grants in accordance with the necessity for crisis measures, as well as to provide grants under simplified rules, and also to increase the total resource under operations above the limits approved by the Monitoring Committee under the schemes under which measures are eligible in emergency situations.

 ii. Other amendments in the terms under AMADSE are introduced as well:

• The compensations paid to employers with the aim to protect the employment, provided for in detail by Decree of the Council of Ministers No. 55 dated 30 March 2020 (also known by the general public as “the 60/40 measure”) shall be paid for a term between 13 March 2020 and 30 June 2020, but for no longer than 3 months.
• The terms, which were suspended for the duration of the state of emergency under AMADSE shall once again begin to run counted as of 21 May 2020;
• The possibility to re-negotiate the terms under public procurements contracts is extended – the term in question can be extended for up to two months, counted as of the termination of the state of emergency;
• The simplified regime for concluding one-day employment contracts under Art. 114a of the LC shall be extended until 31 October 2020;
• The temporary measures for protection of the production of foods made in the Republic of Bulgaria, the trade with them and placing them in the market by chains of stores shall be extended until 31 December 2020.

D. Another amended provision of AMADSE entitles the head of the managing body of the European Structural and Investment Funds to terminate procedures for provision of grants in order to ensure funding in accordance with the necessity for measures and to overcome the consequences. It is also provided for that based on an act of the Council of Ministers, the managing bodies can assign the performance of financial resources and instruments for the 2014-2020 program period also through the Bulgarian Development Bank.

E. It is also provided for that upon ambiguities and gaps in the legal regime provided for by AMADSE, interpretation and explanations shall be given by the state and local authorities in accordance with their competence. These interpretations should be made public.

2. Amendments in the Excise Duties and Tax Warehouses Act (EDTWA)

The Transitional and Conclusive Provisions of the adopted Bill for Supplementation and Amendment of the Health Act also contain new provisions to the EDTWA, which do not have direct relation with the termination of the state of emergency, but namely:

• The licensed warehouse keepers should use a video surveillance system compliant with the regulatory requirements in case they produce or store energy products with Combined Nomenclature codes 2710 12 to 2710 20.¹
• It is envisaged that a tax warehouse cannot be an object that covers an oil product pipeline and more than one base/ object for storage and/ or production of energy products connected/ adjunct to it, i.e. they must be registered as separate warehouses. There is an exception for the cases when an oil refining installation is connected to the oil product pipeline - then the pipeline and the base in which the installation is located shall represent one tax warehouse. If the pipeline is located on the territory of more than one customs office, it will be treated as a separate tax warehouse for which a separate license should be issued. The pumping equipment necessary for the operation of the oil pipeline will be considered a part of the tax warehouse. The persons affected by the latter change shall be obliged to bring their activities in compliance with the new requirements by submitting within one month counted as of 13 May 2020 a notification to the Director of the Customs Agency for the change in the circumstances. If this term is not observed, the issued tax warehouse license shall be terminated.
• A new obligation is provided for the licensed warehouse keepers, in connection with the internet access, which they are obliged to provide to the customs authorities and the revenue authorities of the National Revenue Agency to their automated reporting systems. These persons should use means for measuring and control over the inlet and outlet of the pumping equipment necessary for the operation of the oil pipeline.
• The term for adoption of the amendments to the Rules on the Application of EDTWA has been shortened (it is now one month) in connection with the introduction of requirements regarding the measurement and control means used by the licensed warehouse keepers.
• Within one month from the entry into force of the amendments to the Rules on the Application of EDTWA under the previous bullet, the licensed warehouse keepers shall submit a request for approval of the construction of the video surveillance system, and within two months from the issuance of the act for approval by the competent authorities, the licensed warehouse keepers shall conform their activities respectively.

 ¹The previous wording of the provision required for such systems to be maintained by licensed warehouse keepers who produced and stored (the requirement was for both activities to be cumulatively present), and as per the latest amendment, now it will be sufficient for only one of the activities to be carried out (i.e. they’re listed alternatively).

3. Other Amendments

• Foreigners with continuous residence permits whose term expires up to three months counted as of the termination of the state of emergency, will be able to file applications for extension of their residence within three months as of the date of termination of the state of emergency. This term shall not be considered as suspended for the purposes of application for long-term or permanent residence permit.
• The foreigners with continuous residence permit, which expires up to three months counted as of the termination of the state of emergency shall be able to enter in the territory of the Republic of Bulgaria without having a visa for a term of up to three months counted as of the date of termination of the state of emergency.
• It is envisaged that the provisions of the Labour Code applicable during the state of emergency shall also become applicable during a declared extraordinary epidemic situation.
• It is also envisaged that the unpaid leave requested by an employee under Art. 160, Para. 1 LC, used during 2020, shall be accepted as time of service and social security contribution period for up to 60 days (unlike the general rule, which provides for a maximum of 30 days per year).
• A new form of compensation is provided for, which shall be payable by the state. For a term of up to six months after the termination of the state of emergency, the Employment Agency shall pay compensations at the amount of BGN 290 to certain categories of persons subject to the rules on social security under the Social Security Code, as per criteria and conditions which shall be defined by an act of the Council of Ministers.
• Until 31 October 2020, unemployed persons of working age who receive a monthly allowance under the Social Assistance Act and are not included in the employment programs may conclude employment contracts for short-term seasonal agricultural work for a period not exceeding 120 days, as this time will not be recognized as length of service. Such an employment contract will have a normal working time of up to 8 hours per day, and the parties may arrange work for 4 or 6 hours.
• It is provided for that the due deductions for the period between 1 March 2020 until 30 November 2020 on the grounds of Art. 60, Para. 2, it. 1 and 2 and Art. 64, Para. 1 of the Waste Management Act, shall be paid no later than 31 December 2020. For the period between 1 March and 31 December 2020, no interest shall be calculated on the amounts for monthly deductions due on these grounds.

The amendments described hereinabove shall enter into force counted as of 14 May 2020 with the exception of the amendments to the EDTWA, which shall enter into force on 13 May 2020.

This material is not exhaustive, is only of general nature and does not represent a specific advice or consultation. Should any additional questions arise, please do not hesitate to contact us at tel.: 02/943 37 00, fax: 02/943 37 07, е-mail: office@afa.bg or at: 38, Oborishte Str., Sofia 1504.