On July 17, the 84th session of the Sejm began. On the first day of the session, the Members of the Sejm worked, among others, on a draft introducing a PLN 500 monthly allowance for the most vulnerable adults with disabilities. The Sejm also made a decision on a motion of censure against the Minister of Environment.
I Readings
The Sejm began its session with the first reading of the draft on supplementary benefit for adults incapable of independent existence. They will receive a supplement of 500 PLN. The discussion on the project was opened by the speech of the Prime Minister Mateusz Morawiecki. The document was presented on behalf of the government by Krzysztof Michałkiewicz, Secretary of State at the Ministry of Family Affairs, Labour and Social Policy. The Social Policy and Family Committee will work on the project.
There was also a first reading of a bill that providesreplacement of the currently binding special solution for VAT settlements, i.e. reverse charge (split payment) with an obligatory mechanism of divided payment (MPP) in certain sectors. Undersecretary of State at the Ministry of Finance Tadeusz Kościński provided justification of the draft. The draft was referred to the Committee of Public Finance for consideration.
The government draft amendment to the Personal Income Tax Act discussed by the Sejm in the first reading concerns exemption from income tax on seafarers' income earned from work on seagoing vessels of Polish nationality performed jointly for at least 183 days in the tax year, in international shipping on vessels used for the transportation of cargo or passengers. The document implements the position of the European Commission. Grzegorz Witkowski, Undersecretary of State in the Ministry of Maritime Economy and Inland Navigation justified the project. The Sejm directed the document to further work in committees: Public Finance and Maritime Economy and Inland Navigation.
The Sejm also considered in the first reading a draft amendment to the Electoral Code, which provides that on the validity of the presidential, Sejm, Senate and EP elections, as well as the validity of the election of the MP against whom the protest has been lodged, the Supreme Court will rule in the composition of the whole Chamber of Extraordinary Control and Public Affairs. The document was presented by Anna Kwiecień, MP. The Sejm directed the project to further work in the Extraordinary Committee for Consideration of the Draft Laws on Elections.
Continued work in the Sejm. II readings
On Wednesday, MPs also considered in the second reading a comprehensive draft amendment to the Code of Criminal Procedure by the Ministry of Justice, which deals with, among other things. to streamline criminal proceedings, to adapt procedural regulations to technological developments, and to eliminate legislative errors in the law. Along with the government proposal, MPs also discussed Senate bills on amendments to the Code of Criminal Procedure (Files No. 3134 and 3193). The report of the Extraordinary Committee for Amendments to the Codifications was presented by Marek Ast. As amendments were made in the second reading, the bills were referred back to the committee to present a report.
Amendment of the Law on Advocates and Law on Legal Advisers provides that trainee advocates and legal advisers - who after completing their traineeship were unable to take the exam due to childbirth - will be able to retain their trainee privileges for an additional year. The report of the Committee on Justice and Human Rights was presented by Marek Ast. The Sejm will decide on the further fate of the bill in the voting block.
Members also took up Wednesday an amendment to the Veterans of Foreign Operations Act, which introduces Provisions enabling more effective functioning of the system of assistance provided to the participants of the activities of the Polish armed forces outside the borders of the state. Wojciech Buczak presented the report on behalf of the Committee on National Defense. Members referred the document back to the committee for a report.
The bill presented by the President of the Republic of Poland on the implementation of social services by a social services center, which MPs considered in the second reading, aims to development and integration of social service system at local level. It assumes creation of Centers of Social Services in order to fulfill the needs of local community in the range of specified social services and coordination of these services. The report of the Committee on Social Policy and Family was presented by Joanna Borowiak. As amendments were tabled in the second reading, the Sejm referred the bill back to the committee to present a report.
On Wednesday, the MPs worked on a Senate bill amending the Act on Compulsory Insurance, the Insurance Guarantee Fund and the Polish Motor Insurers' Bureau. The document concerns expanding the tasks of the Insurance Guarantee Fund to include settling personal injury claims under third party liability insurance for owners of motor vehicles and third party liability insurance for farmers - if the guarantee sum is exhausted - up to the amount of the current guarantee sum. The report of the Committee on Public Finance was presented by Jan Szewczak. During the second reading amendments were submitted to the draft, therefore it was referred back to the Commission for consideration.
Amendment of the Act on Sea Ports and Harbours aims to align national legislation with EU solutions. Document establishes a framework for the provision of port services and common rules on the financial transparency of ports. Sylwester Chruszcz presented the committee report. The Sejm will proceed to the third reading of the draft in a voting block.
The government's proposal for a law on a compensation system for energy-intensive sectors and subsectors introduces provisions allowing granting monetary compensations (constituting public aid) to a part of entrepreneurs from the energy-intensive sector (ca. 300 companies), whose profitability and competitiveness is significantly threatened by the increase in electricity prices resulting from the EU climate and energy policy (This includes rising prices for the purchase of greenhouse gas emission allowances). The report of the Committee on Energy and State Treasury was presented by MEP Maciej Małecki. Amendments were submitted to the bill during the second reading, so it was referred back to committee to present the report.
The Sejm considered in the second reading a government bill on ensuring accessibility for people with special needs. The new regulations are to improve accessibility of public entities and enable people with special needs to use public services as independently as possible. Jerzy Polaczek, Member of the Infrastructure Committee, presented the report. The Sejm will proceed to the third reading of the bill in the voting block.
MPs discussed amendments to the Social Assistance Act and the Mental Health Act. The proposed solutions are to reduce inadequacies in facilities providing 24-hour care for persons with disabilities, chronically ill or elderly persons. The report of the Committee on Social Policy and Family was presented by Grzegorz Matusiak. The Sejm sent the project to be reconsidered by the Commission.
The government draft amendments to the Minimum Wage Act concern expanding the catalog of remuneration components which are not taken into account when calculating the amount of remuneration of an employee compared to the minimum wage by adding the length-of-service bonus. Urszula Rusecka, MP, presented the report of the Committee on Social Policy and Family. The Sejm will proceed to the third reading of the draft in a voting block.
The Sejm worked on an amendment to the act on retirement benefits for officers of the Police, the Internal Security Agency, the Foreign Intelligence Agency, the Military Counterintelligence Service, the Military Intelligence Service, the Central Anti-Corruption Bureau, the Border Guard, the State Protection Service, the State Fire Department, the Customs-Security Service, the Penitentiary Service and their families as well as certain other acts. The draft provides for abolition of the condition of 55 years of age as a prerequisite for acquiring the right to pension by officers of uniformed services and professional soldiers. According to the solutions contained in the document uniformed employees will be entitled to a pension after 25 years of service. The report of the Committee on Administration and Internal Affairs was presented by Grzegorz Adam Woźniak, MP. Due to the amendments, the draft was referred back to the Committee.
In the second reading, the deputies discussed the draft amendments to the Act on the Police, the Act on the Border Guard and the Act on the Prison Service presented by the President. The proposal extends the rights of police, Border Guard and SW officers to form and join trade unions. The report of the Committee on Administration and Internal Affairs was presented by Arkadiusz Czartoryski, MP. The Sejm has referred the bill back to the committee to present the report.
On Wednesday, the Sejm worked on an amendment to the Act on stocks of crude oil, petroleum products and natural gas as well as on the principles of proceeding in the event of a threat to the state's fuel security and disturbances on the oil market and the Energy Law. The draft is aimed at increase storage capacity at the level expected by the oil sector in terms of capacity for crude oil and for finished fuels. The report of the Committee on Energy and State Treasury was presented by Wiesław Krajewski. The Sejm will proceed to the third reading of the draft in a voting block.
Amendment to the Act on investments in the field of liquefied natural gas regasification terminal in Świnoujście is another government draft considered by the Parliament in the second reading. The document assumes introducing provisions to facilitate the construction of key distribution infrastructure that will enable gas fuels to be supplied from the LNG terminal in Świnoujście to the largest possible group of customers. The report of the Committee on Energy and Treasury was presented by Ewa Malik. The third reading of the bill will take place in the voting block.
The Sejm discussed in the second reading a government draft amendment to the Act on bio-components and liquid biofuels. The proposed changes are to enable the entities obliged to implement the National Indicative Target to realise the scope of their obligations related to the implementation of the NIT in the coming, key years for the sector. The report of the Committee on Energy and State Treasury was presented by Krzysztof Sitarski. The Sejm will proceed to the third reading in a block of votes.
Members discussed the Senate's bill to prevent food waste, concerning, among other things. imposing an obligation on food sellers with a sales area exceeding 250 square meters to conclude an agreement with a non-governmental organization on the free transfer of food for social purposes, and introducing a fee for wasting food and penalties in the event of failure to conclude such agreements. The report of the Committee on Economy and Development was presented by Paweł Kobyliński. As amendments had been tabled, the draft was referred back to committee to report.
Thursday, 18 July, was the second day of the 84th session of the Sejm. On that day, the House held a six-hour debate on the report on the implementation of the 2018 budget and the discharge of the Council of Ministers. MPs heard reports from, among others, the Supreme Audit Office and the National Bank of Poland. In addition, the Chamber continued its work on 16 bills. Among them we will find, among others: a draft on supplementary benefit for persons incapable of independent existence; a draft amendment to the Law on Goods and Services Tax, introducing a mandatory split payment mechanism. The Sejm also held a discussion on the government draft law on the State Commission for clarifying cases of acts against sexual freedom and decency against minors.
Budget 2018
The discussion that dominated the work of the House during the second day of the 84th session of the Sejm concerned report on the implementation of last year's budget. The Committee on Public Finance, represented in the Plenary Chamber by Andrzej Szlachta, MP, proposed to adopt the report on the implementation of the budget and granting discharge to the Council of Ministers for that period. The rapporteur, in the course of the debate, stressed thatThe state budget deficit decreased from 1.3% of GDP in 2017 to its lowest level ever at 0.5% of GDP. He added that the state budget for the first time in the history of the 3rd Republic of Poland approached the level of a balanced budget. Positive evaluation of the last year's budget execution was also given by the President of the Supreme Chamber of Control (NIK) Mr. Krzysztof Kwiatkowski. He informed that the Board of the Supreme Chamber of Control, having studied the analysis of the execution of the state budget and the assumptions of monetary policy in 2018, adopted a resolution expressing a positive opinion on the discharge for the Council of Ministers. In the course of the debate, the Minister of Finance Marian Banaś also took the floor, who drew particular attention on the increase in state budget revenues. Year on year it amounted to over 34 million PLN. This is largely due to increased revenues from the goods and services tax. The Sejm will proceed to the third reading in a voting block.
The Chamber also approved information of the Prime Minister about sureties and guarantees issued by the State Treasury and Bank Gospodarstwa Krajowego and got acquainted with the last year's activities of the National Bank of Poland, presented by the President of the Central Bank, Adam Glapiński. He stressed, inter alia, that inflation remains in line with the adopted inflation target.
Continued work in the Sejm. II readings
On Thursday, the MPs considered in the second reading a presidential draft amendment to the Act - the Code of Commercial Companies, concerning among other things, to improve the holding of shareholder meetings in companies through the use of electronic communications and is expected by entrepreneurs of capital companies. Arkadiusz Mularczyk, Member of the Parliament, presented the report of the Special Committee for amending codifications. The third reading of the draft will be held in a voting block.
The amendment to the Commercial Companies Code and certain other acts is aimed at Increase the transparency and efficiency of information exchange in tax matters, in line with Organization for Economic Cooperation and Development (OECD) standards. The position of the Committee for Amendments to the Codifications was presented by Grzegorz Lorek, MEP. During the second reading, amendments to the draft were filed, therefore, it was referred again to the Extraordinary Committee for amendments to the Codifications.
The Diet continued its work on the supplementary benefit bill, which provides for granting a benefit of PLN 500 per month to persons who are at least 18 years old and whose inability to lead an independent life has been confirmed by a certificate of total inability to work and inability to lead an independent life. The bill was referred back to the Social and Family Policy Committee.
Amendments to the Law on Goods and Services Tax and the Law on Tax Ordinance and amendments to the Law on Goods and Services Tax and some other laws were considered by the House together. The first of the drafts concerns Formulate a new VAT rate matrix while simplifying the rate system. In practice it is about correct allocation of goods or services to VAT rates. The second draft provides for mandatory use of the split payment mechanism, the use of which eliminates fraud in VAT. The mandatory form of this tax will replace the so-called reverse charge mechanism. Due to the amendments, the drafts were referred again to the Committee of Public Finance.
The MPs also discussed amendments to the Act on providing information about the environment and its protection, public participation in environmental protection and environmental impact assessments and some other acts. Among other things, it streamlines administrative proceedings and shortens procedures related to the implementation of the investment process, especially in obtaining an environmental decision. For projects, for which the obligation to carry out an environmental impact assessment was not established - the indicated authority, instead of issuing a decision, will issue an environmental decision. At the same time - in certain cases - the draft assumes abolishment of the obligation of the State Sanitary Inspectorate to participate in the environmental impact assessment procedure. The draft was again referred to the Committee for Environmental Protection, Natural Resources and Forestry.
In turn, the MP's draft amendment to the Education Law Act provides for Introducing legislation to enable the statutory definition of the functioning of military preparation units - the so-called military uniform classes. The bill was referred back to the joint Committees on Education, Science and Youth and the Committee on National Defense for consideration.
The government draft amendment to the Fire Protection Act assumes giving statutory status to tasks related to broadly understood protection and prevention of fire performed by the Volunteer Fire Brigade. The draft mentions, among others, such activities as: organizing undertakings promoting sports and physical culture, organizing educational and cultural undertakings in the field of fire protection, popularizing and supporting forms of cooperation between local social and economic partners in the field of fire protection or promoting the principles of first aid. The project was directed to the Committee of Administration and Internal Affairs to present a report.
The MPs also dealt with the continuation of work on the amendment to the law on the manner of determining the lowest basic salaries of certain employees working in medical entities. The draft introduces a change in the base amount used to calculate the lowest basic remuneration of employees of health care entities. According to the draft, it is to be increased from PLN 3900 gross to PLN 4200 gross. The amendment applies from July 1, 2019, through June 30, 2020. The 3rd reading of the bill will be on the voting block.
The next item for debate was the government draft amendment of certain acts in connection with the implementation of e-health solutions. It provides for introducing a package of changes to accelerate the computerization of the health care system in Poland. The proposed facilitations are to serve patients, such as the possibility of opening an Internet Patient Account in a primary care centre, submitting a declaration of choice of doctor remotely, applying for the European Health Insurance Card remotely or using the mObywatel application to register in a medical centre. In turn, in response to demands made by the medical community, we can mention the introduction of a mechanism automatically determining the level of payment for medicines on e-prescriptions based on a medical indication, extension of the e-prescription fulfilment period to 360 days and many others. The House will proceed to the third reading of the bill in the voting block.
The government draft amendment to the Act on Bankruptcy Law and certain other acts assumes introduction of a solution to improve the functioning of the consumer bankruptcy model, inter alia, by allowing to declare bankruptcy of a person not conducting business activity in a simplified procedure, i.e. without appointing a judge-commissioner. The House will proceed to the third reading of the bill in a voting block.
The government draft amendment to the Act on Public Benefit Activity and Volunteerism assumes establishment of the Council for Dialogue with the Young Generation as a consultative and advisory body to the Chairman of the Committee for Public Benefit. The Council will provide a forum for dialogue between non-governmental organizations and other social entities and institutions of public authority in the field concerning the young generation with particular emphasis on youth councils of municipalities, which currently do not have an institutionalized means of communication with the central government administration. The third reading of the bill will take place in the voting block.
The aim of the MP's draft amendment to the Consular Law is improvement of the Polish consular service. The draft provides for, among others, introduction of derogation from the obligation to pass the consular examination and attend pre-examination training in two cases. First, for a candidate who, within a period of 12 months preceding the date of appointment as a consular officer, has successfully taken the consular examination in connection with a previous appointment as a consular officer. Also for a candidate who, within a period of not more than 12 months prior to the date of appointment as a consular officer, has ceased to perform consular functions in connection with a prior consular appointment. Third reading of the bill will take place in the voting block.
A government bill to ratify the Agreement between the Government of the Republic of Poland and the Government of the United States of America on Enhancing Cooperation in Preventing and Combating Serious Crime, signed in Washington, DC, on June 12, 2019. governs cooperation between the Parties in preventing and combating serious crimes. It contains detailed solutions concerning access to databases containing dactyloscopic data, provides for the possibility of a Party's requesting the other Party's search of its own DNA databases, regulates the protection of transmitted personal data, and specifies "other forms of cooperation." The third reading of the bill will take place in the voting block.
Government draft amendment to the Act on Renewable Energy Sources and certain other acts. It provides for Implement additional measures to achieve a 15% share of renewable energy in gross final energy consumption by 2020. It is also assumed to increase energy security, which should result - in a long-term perspective - in ensuring continuous access to energy for end users, while maintaining energy prices at the lowest possible level. It will also be possible to hold an auction for the purchase of electricity from renewable energy sources (RES) to be sold in 2019 by indicating the maximum quantities and values in the transitional provisions. The draft was referred for further work in the Committee on Energy and the Treasury.
I Readings
The government bill on The State Commission for clarification of cases of actions directed against sexual freedom and morality, against a minor under 15 years of age provides for the establishment of a body independent of public authorities - the State Commission. It will conduct activities aimed at clarifying cases of sexual abuse. The Commission will also be interested in identifying negligence and omissions of state authorities, as well as non-governmental organizations, entities and institutions engaged in educational, upbringing, caring, cultural and physical activities, recreation and medical treatment, as well as professional self-governments, churches and religious associations, including ecclesiastical legal persons, and individuals in clarifying cases of sexual abuse. When irregularities are detected in the functioning of entities whose tasks include the prosecution of crimes or the care and protection of minors, The Commission will be equipped with instruments aimed at ensuring immediate reaction of state authorities, and in the case of identified irregularities it will take action to bring perpetrators of these abuses to justice. The bill provides for a seven-member commission: three persons will be appointed by the Sejm, one by the Senate, the President of Poland, the Prime Minister and the Children's Rights Ombudsman. The bill was referred to the Legislative Committee.
First reading of the government's draft amendments to certain laws to reduce regulatory burdens. The draft presents 50 point changes to 66 laws in the broad economic law. The draft provides for solutions that will speed up and streamline administrative procedures, reduce the frequency of reporting obligations and unlock the potential for further entrepreneurial development, especially for micro, small and medium-sized companies. More than 50 simplifications have been proposed. These include: introduction of the so-called right to make a mistake, extension of the deadline for settling VAT in import or extension of consumer protection for entrepreneurs, further simplification of business succession or extension of the definition of a craftsman. The draft was sent for further works to the Extraordinary Commission for Deregulation.
