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In focus in Bulgarian legislation

Bill of the Administrative Procedure Code as of 24.09.2015

What do the proposed changes in the bill provide?

Acceleration of the administrative justice by focusing the process of proving only in the first instance and by emphasizing on the requirement for implementation of comprehensive written evidences to the complaint and exhaustion of the evidentiary claims in the appeal.
An opportunity for the court to stop the preliminary execution, admitted under a special law.
Removal of the panel of seven members in proceedings for cancelation in order to avoid imperfections in the operation, including difficulties in its formation.
Introduction of fast deadlines for scheduling of cases.
Introduction of the principle of the closed meeting at cassation appeal, but with a number of important exceptions.
An opportunity for imposing of security measures in enforcement proceedings also on other administrative authorities is provided, except on the debtor in enforcement order, which protects the interests of the citizens and the organizations to a greater extent.
A radically change of the mode of the communications is provided. Firstly, it provides much more substantial introduction of the electronic identification and the electronic communications. At the same time the rights of the citizens who do not have Internet access, are respected. The communications are governed individually, as the calling is treated only as a specific type of communication. The notification for already ruled acts of the decisive authorities will be done through their delivery, wherever possible and practically grounded, and not through communications for their preparation.
A change of the starting point is provided, from which the period for appealing the decision of the assigner under the Law on Public Procurement for initiation of the procedure runs.

The Code proposes also a number of other changes, which reflect the jurisprudence, doctrine, the recommendations and suggestions of authoritative judges.

News on European Union Law

Directive (EU) 2015/1513 of the European Parliament and of the Council of 9 September 2015 amending Directive 98/70/EC relating to the quality of petrol and diesel fuels and amending Directive 2009/28/EC on the promotion of the use of energy from renewable sources is published in the EU Official Journal – L239 15.09.2015 and according to its recital 14 “a great use of electricity from renewable sources is a means of addressing many of the challenges in the transport sector as well as in other energy sectors. It is therefore appropriate to provide additional incentives to stimulate the use of electricity from renewable sources in the transport sector and to increase the multiplication factors for the calculation of the contribution from electricity from renewable sources consumed by electrified rail transport and electric road vehicles so as to enhance their deployment and market penetration. Furthermore, it is appropriate to consider further measures to encourage energy efficiency and energy savings in the transport sector.”

Review of thesocial security regime of the individuals, who manage commercial companies

In the modern business environment the most common form of commercial association is the limited liability company (OOD). Without any doubt each OOD needs a person to realize its management, as this need is reflected in several provisions of the Bulgarian legislation, governing both the managerial activity and any other circumstances, arising from this exercise.

Exercising the activity under a contract for management and control (CMC)

The contract for management and control is legally justified in art.141, para. 7 of the Commercial Act, as according to the cited provision, it is concluded in writing on behalf of the company by a person, authorized by the general meeting of the shareholders(in OOD)or by the sole owner(EOOD). The law categorically prohibits to be a manager a person, declared bankrupt or a person, who has been a manager or a member of a management or supervisory body of a company, terminated due to bankruptcy during the past two years, preceding the date of the decision, declaring the insolvency, if there are unsatisfied creditors remained.

According to the practice of the SCC, when the management of a company is assigned to a third party, who is no partner, the only legal option for this is through the conclusion of a contract for management and control. However, if the management is assigned to a partner of the company, the ground for exercising the activity could be also an employment contract, concluded between the company and the partner manager. An important feature of the contract for management and control, which distinguishes it from the employment contract, is that the rights and obligations of the parties are governed by the rules of the civil law, so that any eventual clause in the contract on the proportional pensionable income on worked time would be without legal value for the social security regime of the person, exerciser under the contract. In otherwords, if the relations between the parties are governed not by the Labour Code, but by the CMC, the insuring of the contractor should be on an income not less than the relevant minimum threshold, although the contract could be concluded for work for a few hours per day or per week.

The individuals, who are assigned with the management under a CMC, are not entitled to have paid annual holiday and benefits under the Labour Code and the worked time is not considered to be working experience. All benefits and additional remunerations shall be mentioned as clauses in the contract in order to have legal value.

By 2008, the income of the individuals, working under contracts for management and control, including the members of management and supervisory bodies of undertakings, are subject to taxion by separate order, but as of 2008, they are explicitly referred to in the scope of the income from employment relationships. This change applies only to the rules for the tax treatment of incomes under CMC, in particular the formation of taxable income and pre-tax, the verification of the tax withheld, the determination of the annual tax due and the declaration of the paid obligations during the tax year. In no other respect the contracts for management and control can be treated as employment contracts under the Labour Code.

Exercising the activity under an employment contract

There is no obstacle for a person, who is a partner in a limited liability company, to conclude an employment contract for the exercised by them activity as manager. In this case for them will apply all rules of the employment law, including the right to paid annual holiday and the benefits due.

Of particular importance for the social security regime of the manager under an employment contract is that they could be insured as a self-employed partner, which means that for them does not apply the relevant minimum contribution threshold for the managers under CMC.

It is important to be mentioned that the sole shareholder of the capital of a company cannot manage it under an employment contract, as it is not possible for a person to be in an employment relationship with yourself, which means that the manager – sole owner of the EOOD could exercise the activity under a contract for management and control, or as self-employed.

According to the CSR and the Regulation on social security of the self-employed individuals and the Bulgarian citizens working abroad, being owners and partners of companies that exercise working activity, are subject to compulsory insurance. The management work is also included in this category and for this reason the managers, even if they do not exercise other activity than the management of the company, are also subject to compulsory insurance.

Self-employed individuals must be insured for disability due to general disease, old age and death. Alternatively they can be also insured for general disease and maternity (OBZ), as for the time, in which they have received benefits for temporary disability, pregnancy or maternity, they do not owe insurance contributions. Self-employed individuals can provide insurance income between the minimum and the maximum one, established by the Law on the budget of the state social security for the respective year.

Submitting personal labour

The registered manager of the company could carry out another type of work activity in the company beyond that stipulated in its duties and functions as manager, namely submitting personal work, for which they can receive or not receive remuneration.

The Code of Social Insurance determines that a person, exercising an activity on various grounds, is subject to state social insurance for each of them, as the insurance contributions are paid on the insurable income on each of them in the sequence, determined by the Code, but on not more than the maximum monthly insurance income for the respective year. The statutorily defined sequence begins with the person’s income under a labour and official relationship, as well as those under a contract for management and control. Secondly, follow the income, arising from an activity of a sole trader or owner, respectively partner in a CC or any other profession, while third in the sequence remain the income for working without an employment relationship.

In the end – to be or not to be a manager of a company?

The article has been published in Bulgarian, in Capital Daily.

In focus in Bulgarian legislation

Law on supplement of the Law on Bank Bankruptcy, (SG 61 as of 11.8.2015)

The finally adopted amendments to the Law on Bank Bankruptcy provide all lists that the trustees of the bank in bankruptcy proceedings prepare and are important for its creditors to be published in the Commercial Register.

With amendments to the transitional and final provisions of the Law on Bank Bankruptcy the legislator prepared also amendments to the Law on independent financial audit, which changes provide auditing firms to be punished by up to 10 percent of the total amount of their income for the previous financial year if they commit offenses in checking the annual financial statements of public interest entities, including also banks.

Other changes involve the introduction of open voting in the decision to revoke the right for performing independent audit and deprivation of the right to carry out audit activity. The manner of voting and the motives of each vote are recorded in the minutes of the meeting and are published on the website of the commission.

Law on supplement of the Law on Ownership and Use of Agricultural Lands (SG 61 as of 11.8.2015)

According to the amendments, the owners of orchards plantations on lands of the state and municipal’s land fund, will be able to acquire them at market prices after the expiry of five years from their planting in conditions that this was under a contract with the Minister of Agriculture and Food and the respective mayor. Another condition is these lands to have been acquired through a privatization deal.

In the changes it is set out also that from February 1, 2016 users of holdings with grazing animals will have to have a number and type of animals in accordance with the hired by them areas, according to the norm for the area of a livestock unit as defined in the law.

Furthermore, with the adopted amendments, the Minister of Agriculture and Food may, on the basis of a request by a user or owner, to approve on the legal basis of the agricultural lands, the exclusion of layer “Permanent grasslands” provided that the property does not fall within the protected area, and provided that another area of the holding will accordingly be converted to permanent grass.

Bill of the Public Procurement Act as of 12.08.2015

The proposed bill of the Public Procurement Act is essentially intended to establish a new regulatory framework that governs the spending of public funds in connection with the assigning of contracts for the acquisition of building, supplies or services and the assigning of such contracts in established by the law economic industries.

The bill of the Public Procurement Act has been prepared while taking into consideration of the basic requirement for achieving full compliance with the applicable European directives. By the law in the national legislation are transposed the five relevant directives. Thereby, coverage within a normative act on all matters, relating to the assignment and appealing of public procurement, is achieved.

Secondly, in the bill are also regulated all matters related to the establishment of a national policy – public procurement rules. The rules cover both the procurement of low value and the powers of the authorities for preliminary and subsequent control, including the main national authority, by which the state policy is performed – the Public Procurement Agency. Its functions are regulated in detail in the law. In regard to the authorities for subsequent control – the Court of Auditors and the Agency for State Financial Inspection, as well as the authorities involved in the appealing – the Commission for Protection of Competition and the Supreme Administrative Court, are regulated the issues, concerning their competence in the field of the public procurement, as far as their structure and general powers are subject to separate regulations.

News on European Union Law

Council Recommendation of 14 July 2015 on the 2015 National Reform Programme of Bulgaria and delivering a Council opinion on the 2015 Convergence Programme of Bulgaria is published in the EU Official Journal – C272 18.08.2015, with which the Council of the European Union, taking into account that: 1.On 26.03.2015, the European Council agreed to the Commission’s proposal to launch a new strategy for growth and jobs, Europe 2020; 2.On 14.07.2015, the Council, on the basis of the Commission’s proposals, adopted a Recommendation on the broad guidelines for the economic policies of the Member States and the Union and, on 21.10.2010, it adopted a decision on guidelines for the employment policies of the Member States; 3.On 8.07.2014, the Council adopted a Recommendation on Bulgaria’s National Reform Programme for 2014; 4.On 28.11.2014, the Commission adopted the Annual Growth Survey, marking the start of the 2015 European Semester for economic policy coordination; 5.On 18.12.2014, the European Council endorsed the priorities for fostering investment, intensifying structural reforms and pursuing responsible growth-friendly fiscal consolidation; 6.On 26.02.2015, the Commission published its 2015 country report for Bulgaria; 7.On 30.04.2015, Bulgaria submitted its 2015 National Reform Programme and its 2015 Convergence Programme; 8.Bulgaria is currently in the preventive arm of the Stability and Growth Pact; 9.Tax compliance continues to be a major challenge in Bulgaria; 10.The Bulgarian healthcare system faces several major challenges, including poor health outcomes, low funding and serious inefficiencies in the use of resources; 11.Banking sector turmoil in the summer of 2014 revealed institutional and supervisory weakness; 12.Active labour policies are insufficiently developed in terms both of coverage and of targeting; 13.The low quality of the education and training systems and their limited relevance to the labour market hamper the supply of a suitably skilled labour force to the economy; 14.In spring 2015, the Government presented a proposal for reform of the pension system; 15.A key building block for an investor-friendly business environment is an independent, high-quality and efficient judicial system and effective mechanism to fight corruption; 16.The insolvency framework in Bulgaria has been ineffective, increasing uncertainty among market participants and reducing the country’s overall attractiveness to investors; 17.Strategies for the reform of the public administration and the introduction of e-government were adopted in 2014; 18.In the context of the European Semester, the Commission has carried out a comprehensive analysis of Bulgaria’s economic policy and published in the 2015 country report, RECOMMENDS that Bulgaria takes action in 2015-2016 to:

Avoid a structural deterioration in public finances in 2015 and achieve an adjustment of 0,5% of GPD in 2016. Take decisive measures to improve tax collection and address the shadow economy, based on a comprehensive risk analysis and evaluation of past measures. Improve the cost-effectiveness of the healthcare system, in particular, by reviewing the pricing of healthcare and strengthening outpatient care and primary care.
By December 2015, complete a system-wide independent asset-quality review and a bottom-up stress test of the banking sector, in close cooperation with European bodies. Perform a portfolio screening for the pension funds and insurance sectors. Review and fortify banking and non-banking financial sector supervision, including by strengthening the bank-resolution and deposit-guarantee frameworks. Improve corporate governance in financial intermediaries, including by tackling concentration risk and related-party exposures.
Develop an integrated approach for groups at the margin of the labour market, in particular older workers and young people not in employment, education or training. In consultation with the social partners and in accordance with national practices, establish a transparent mechanism for setting the minimum wage and minimum social security contributions in the light of their impact on in-work poverty, job creation and competitiveness.
Adopt the reform of the School Education Act, and increase the participation in education of disadvantaged children, in particular Roma, by improving access to good-quality early schooling.
With a view to improving the investment climate, prepare a comprehensive reform of the insolvency framework drawing on international best practice and expertise, in particular to improve mechanisms for pre-insolvency and out-of-court restructuring.

Mission (im) possible?

The legislator in Bulgaria introduced for the first time a legal definition of the term “cartel” with the adopted in 2008 Law on Protection of Competition (LPC) as “an agreement and/or concerted practice between two or more undertakings – competitors in the respective market, aimed at restricting competition by fixing prices or price conditions for purchase or sale, allocating of production or sales, or allocating of markets, including manipulation of public tenders or competitions, or procedures for assigning of public contracts.”

In practice, however, the cartel agreements have been investigated by the security authorities in the European Union long ago. In art. 101 of the Treaty on the Functioning of the European Union (TFEU) all agreements between undertakings, decisions by associations of undertakings and concerted practices, which may affect the trade between the Member States and which have as their object or result the prevention or distortion of competition within the common market, are declared incompatible with the common market. This general prohibition is detailed in several hypotheses, which in turn constitute the most common manifestations of anti-competitive behavior in the market, namely – direct or indirect fixing of prices, limiting or control of production and allocation of markets or sources of supply.

CPC monitors cartel agreements

In its practice, the Commission for Protection of Competition (CPC) assumes that an “agreement” within the meaning of the prohibition exists when the undertakings have demonstrated a general intention to have a certain behavior on the market. To fall within the scope of the competition law, the agreement does not need to be expressed in any form. It may be oral or written, signed or unsigned, and even in the form of informal gentleman arrangements, which do not have any binding effect. To constitute a violation, it is not necessary for the parties to have reached an adoption of a final plan or model of behavior. A prohibited agreement is primarily the matching of intentions to achieve a certain anti-competitive object or effect.

One of the manifestations of the cartel agreements is the coordination of individual participants in the application procedures in public procurement with regard to the coordination of the mechanisms of preparing the pricing proposals. The assignment of the public procurement is based on the economic principle of supply and demand. The assigners rely on the competitive competition in the procedures carried out to achieve the most efficient use of their budgets. In the conditions of a market economy, the effective competitive process is that one, which can lead to lower prices, higher quality and more innovation in offering goods or services in the procedure of procurement.

The guaranteeing of an efficient, fair and free competition between the undertakings, participating in the procedures for assigning of public contracts, is governed by a guiding principle. The European Union law on the procedures for procurement is objectified by Directive 17/2004 and Directive 18/2004, according to which the basic principles are: equal treatment, non-discrimination, effective competition and transparency. Therefore, the coordination of general pricing mechanisms between the participants is a serious violation, contrary to these principles. One of the main indicators, adopted in the practice of disclosure of auction manipulations, is the existence of identical or similar pricing proposals of the participants in the auctions. However, according to the European Court of Justice, this factor raises a doubt that the respective undertakings could participate in an anti-competitive arrangement for manipulating procurement, but in itself it is not a conclusive proof of the existence of such concerted behavior.

The prohibited agreements, which have as their object direct or indirect fixing of prices, represent the most serious violation of the competition law and lead to serious damages to the market. For this reason, it is accepted in the practice that agreements or concerted practices with such subject, are illegal by their nature, even if they have not triggered a real effect on the market yet.

The proceedings of the CPC in connection with the sharp rise in prices of the oilseed sunflower and the sunflower oil in the period August – October 2010 are of partucular interest.

The CPC initiated a sector analysis of the competitive environment of the two interrelated markets – these of the production and marketing of oilseed sunflower and sunflower oil. By its decision as of 2012 the Commission has affected a number of suppliers of refined sunflower oil and their distributors, admitting them guilty and imposed fines for applying vertical cartel agreements that restrict or distort the competition in the market. According to the CPC, the same agreements aim to determine directly or indirectly the resale prices of refined sunflower oil and the allocation of markets in the form of restriction of the distributor’s territory. The proceedings of appealing the decision of the control authority are not completed at the moment.

The CPC, however, is not always as thorough and consistent in its analysis on the cartel agreements. In 2011, the Commission started a procedure in connection with the existing clause between four of the largest gas station chains for resale in the wholesale contracts for fuels, as well as for allegations in parallelism in the change of the wholesale prices of fuels. Instead of imposing sanctions to the companies, the CPC approved the proposed by the offenders’ measures, including removal of the clauses between the supplier and the buyers of minimum resale price of the fuels and restricting the access to the wholesale prices of the companies. All this was accepted by the public as a hint of retreat by the CPC to the serious economic interests in the sector. Another example from 2011 ended with the conclusion of the commission that there was no violation of the anti-cartels legislation regarding the suspicions that the main fuel supplier has provided illegal discounts on wholesale prices of several major gas station chains.

It should be mentioned that the Commission’s decisions are not final and are subject to appeal before the Supreme Administrative Court (SAC).

There are often cases in which the CPC imposes sanctions in relation to established cartel agreements, but SAC repeals them. Thus, in 2012 the Commission sanctioned three tour companies nearly 3 million BGN in total, concluding that they have made a cartel agreement, which led to manipulation of the procedure for conclusion of a framework agreement for assigning of centralized public procurement with subject – the provision of airline tickets for business trips at the country and abroad. With its decision, however, the SAC repealed the penalties imposed by the CPC in their bigger part, considering that similar price offers of the different participants are a result of using the same system for booking of airline tickets. The court decision is currently being appealed before a five-member panel of the SAC.

Does the country have the potential to deal with the cartel agreements and does it make the necessary efforts in this direction? This is an issue that concerns a significant part of the sociality, and the answer has never been unambiguous. In its decision the CPC concludes that “the current regulations create sufficient guarantees to limit the operation of the cartels against third parties.” However, we are often remained with the feeling for concerted practices behind-the-scene, especially as regards the trade in sensitive markets, such as those of fuel, food essentials and transport services.

The article has been published in Bulgarian, in Capital Daily.

In consideration of the numerous decisions against Google regarding the use of cookies in the European Union, the company aligns with the European legislation in this field. Thus, Google has sent a letter to inform regarding a new policy regarding obtaining the consent of the final users in EU. In this respect, it states that it is necessary to have the consent of final users in EU regarding storing and accessing the cookies and other information, as well as collecting data, change and use of Google products. And the term for observing this new policy is 30 September 2015.

It is well known the fact that the important browsers allow the users to block or delete the cookies from their devices. Therefore, among the terms and conditions of the online privacy policies, there shall appear the note of the browser operator regarding the possibility of the user to manage the cookies by performing certain browser settings. However, by deactivating the cookies, it is possible that the user shall no longer be capable to access some characteristics of the internet page and as such, in fact, the users don’t have real control over the cookies!

By Directive 2002/58/EC regarding the personal data processing as amended in 2009 y the European Parliament, the reference EU legislation in the field imposes the necessity of such control. The most important amendment regarding the cookies was introduced by art. 5 (3), which provided that storing information by cookies may be performed only after the user gave its’ approval in this respect:

The member state ensures that the use of electronic communications networks to store or access information in the terminal equipment of a subscriber or user is allowed only provided that the respective subscriber or user received clear and complete information according to the Directive 95/46/EC, inter alia, regarding the scope of processing by the data controllers.

Therefore, by these amendments a controversial issue at the legislative level was decided, respectively, which is the applicable legislation to a website operator, USA or other non-EU entity whose users are from the EU?

If the site users are from the EU, it is applicable in this field the reference legislation, respectively the Directive 2002/58/EC- regarding data protection. Art. 29 of the working group (WP) expressly mentions the fact that the directive regarding data protection shall apply to the non-EU operators of a website, including the ones in the United States of America, due to the fact that introducing and using the cookies is made on equipments located in EU.

Should sending a text file installed on a hard-disk from a computer located in an EU state cause the receipt and sent back of information to a server located in another country, art. 29 of the working group provide that the national legislation of the user of the computer is applicable, in this case the EU legislation.

Therefore, the observance of the conditions regarding the observance of the EU legislation regarding the cookies is not difficult! The confidentiality policy of website operators shall need to be adapted in such a way to offer more detailed information regarding the use of cookies than the ones offered now. In addition, it will require a form of site-banner or pop-up notification seeking to obtain the consent of the user regarding the use of cookies.

In focus in Bulgarian legislation

Law on supplement of the Code of Civil Procedure, (SG 50 as of 03.7.2015)

The adopted provisions perceive the mechanism of Regulation (EU) No 1215/2012 of the European Parliament and of the Council of 12 December 2012 on jurisdiction and the recognition and enforcement of court decisions in civil and commercial matters.

In this respect, the adopted Law on supplement of the Code of Civil Procedure defines the competent court before which citizens can exercise their rights under the regulation, relating to the filing of an application for refusal of recognition or lack of grounds for this or an application for refusal of enforcement of foreign court decisions. The adopted law introduces important changes in the warrant and execution procedure and provides a term to approve the requirements for exchange of electronic distraint, which will allow imposition of an electronic distraint over a receivable under a bank account without unnecessary costs.

Law on supplement of the Labour Code, (SG 54 as of 17.7.2015)

What are the changes?

Young people between 16 and 18 years old can already work up to 22 hours instead of 20 hours, as such restriction was there so far.

Introduced are new types of employment contracts – for short-term seasonal agricultural work. Their duration is one day and they will be certified by the General Labour Inspectorate. Their practical application is regulated by a special ordinance, which is also published in State Gazette No54.

New rules in the implementation of flexible working hours are regulated. According to them, the employer will continue to determine time for required presence of workers and employees, but the hours outside can be worked out on every other day of the week. The way of reporting of working time is regulated by the rules for internal labour order of the undertaking. The control will monitor whether, in the distribution of the working hours and the working out of the hours on other days, the requirements for mandatory daily or weekly rest period are followed.

The obligation of employers to prepare schedules for holidays has been repealed.

The employers are required to keep employment records of their workers and employees, in which documents are stored in connection with the occurrence, existence and termination of the employment relationship.

Special rules for micro and small undertakings are introduced, as they will no longer be able to introduce longer working hours when necessary, as well as reduced working hours in industrial problems.

Law on supplement of the Energy Sector Act (SG 56 as of 24.7.2015)

After entering on 14.07.2015 in the NA of a unified bill, prepared under art.77, para.2 of the ROPNA, on the basis of the adopted at first reading two bills, on 24.07.2015 the Law on supplement of the Energy Sector Act was published in the SG.

Review of the changes:

For managing of the funds to cover the costs, incurred by the public provider, stemming from its obligations under art. 93a, determined by the commission, including for past regulatory periods a fund “Safety of the electricity system” is established.

The payment to the public provider to cover the costs with funds from the fund shall be carried out monthly.

The funds of the fund are raised from:

the contributions under art. 36e;
the revenues, received from the tenders for sale of quotas under art. 57, para. 1 of the Law for limiting the climate change, which are used for development of renewable energy sources
the revenues from interests, including arrears of contributions under item 1;
donations;
the revenues from statistical transfers of energy from renewable sources, which are used for the development of renewable energy sources.

The funds are spent for maintenance, related to the activity of the fund and for payment of funds to cover the costs, incurred by the public provider, stemming from its obligations under art. 93a, determined by the commission, including for past regulatory periods.

Contributions to the fund in the amount of 5 percent are made monthly by:

the producers of electricity from the revenues from electricity sold without VAT;
the traders that import electricity from the revenues from imported and sold on the national market electricity without VAT.

The producers of electricity and the traders that import electricity on the national market submit to the fund until the 5th day of the current month information about the revenues under para. 1 for the previous month.

The contributions to the fund shall be paid by the 15th day of the month, following the month to which they relate and are recognized as current expenses for tax purposes.

For the purposes of the price regulation in the composition of the costs, recognized by the commission, the expenses for contributions under para. 1 are not included.

The contributions under para. 1, are public state receivables, as the unpaid within the term contributions, are established and collected under the Tax and Social Insurance Procedure Code by the National Revenue Agency.

The funds and operations of the fund are included in the consolidated fiscal program as means and operations of other economically autonomous entities under art. 13, para. 4 of the Law on public finances and are not part of the state budget.

The funds, provided for payment of the costs, incurred by the public provider cannot be subject to interception and are inaccessible.

The Council of Ministers determines with ordinance the order and manner of raising, spending, accounting and control of the funds of the fund.

The public provider, respectively the end suppliers purchase electricity produced from renewable sources under the following conditions:

at a preferential price for the quantities of electricity to the amount of the net specific production of electricity, based on which are defined preferential prices in the relevant decisions of CEWR; for the objects under art. 24, item 3 the net specific production of electricity does not apply;
at a price for excess of the balancing market for the quantities, exceeding the production under item 1.

The quantities of electricity over those under para. 5, item 1 the producers can use to supply their branches, enterprises and objects, or to sell at freely negotiated prices under chapter nine, section VII of the Energy Sector Act and /or on the balancing market.

Law on supplement of the Protection of Competition Act (SG 56 as of 24.7.2015)

In part two, there is regulated a new chapter seven “a” with art.37a “Abuse of a stronger position in negotiations“, according to which every act of omission of an undertaking with a stronger position in negotiations shall be prohibited, where it is in conflict with the fair business practice and is damaging or can impair the interests of the weaker part in negotiations or of consumers. Unfair shall be acts of omission which do not have objective economic grounds, such as unjustified refusal to be delivered or purchased goods or services, imposition of unreasonably heavy or discriminatory conditions or ungrounded termination of business relations. The existence of a stronger position in negotiations shall be determined in view of parameters of the structure of the respective market and particular legal relationship between the involved undertakings, taking into consideration the level of dependence between them, the nature of their business and the difference in the scale thereof, the feasibility of finding of an alternative business partner, including the existence of alternative supply sources, distribution channels and/or customers.

News on European Union Law

Commission Implementing Regulation (EU) 2015/1051 of 1 July 2015 on the modalities for the exercise of the functions of the online dispute resolution platform, on the modalities of the electronic complaint form and on the modalities of the cooperation between contact points provided for in Regulation (EU) No524/2013 of the European Parliament and of the Council on online dispute resolution for consumer disputes is published in the EU Official Journal – L171 02.07.2015, with which the European commission has adopted the regulation, laying down the modalities for: the electronic complaint form; the exercise of the functions of the ODR platform; the cooperation between the ODR contact points. The electronic complaint form to be submitted to the ODR platform shall be accessible to consumer and traders in all the official languages of the institutions of the Union. The complainant party shall be able to save a draft of the electronic complaint form on the ODR platform. The draft shall be accessible and editable by the complainant party prior to submission of the final fully completed electronic complaint form. The draft of the electronic complaint form that is not fully completed and submitted shall be automatically deleted from the ODR platform six months after its creation.

A request for a preliminary ruling from the Supreme Court of Cassation (Bulgaria) lodged on 11 May 2015 is published in the EU Official Journal – C236 20.07.2015 (Case C-215/15). Referring court is the Supreme Court of Cassation, while parties to the main proceedings are: appellant in cassation – Vasilka Ivanova Gogova; respondent in the appeal in cassation: Iliya Dimitrov Iliev. The following questions are referred: 1.Does the possibility, provided for by law, for civil courts to resolve a dispute between parents concerning their child’s ability to travel abroad and the issue of identity documents, where the applicable substantive law requires that those parental rights to be exercised jointly with regard to the child, constitute a matter relating to ‘the attribution, exercise, delegation, restriction or termination of parental responsibility’ within the meaning of art.1 (1) (b), in conjunction with art.2 (7), of Council Regulation (EC) No2201/2003 concerning jurisdiction and the recognition and enforcement of judgments in matrimonial matters and the matters of parental responsibility to which art.8 (1) of that regulation applies? 2.Do grounds establishing international jurisdiction apply in civil cases concerning parental responsibility where the decision replaces a legal act central to an administrative procedure concerning the child and the applicable law provides that this procedure must take place in a specific EU Member State? 3.Must it be assumed that there is a prorogation of jurisdiction within the meaning of art.12 (1) (b) of Regulation (EC) No2201/2003 where the respondent’s representative has not challenged the jurisdiction of the court but where that representative has not been authorized by the respondent but rather appointed by the court owing to the difficulty in notifying the respondent in order that he might participate in the proceedings in person or through a representative instructed by him?

Court practice

With interpretative decision 2/2013, the Supreme Court of Cassation ruled on a number of issues related to the problems of enforcement, relating to which there is controversial practice of courts in interpreting and applying the law.

Among the affected issues, the following stand out:

the admissibility of attachment of distraint or injunction over an inaccessible property;
the admissibility of scheduling a public sale of property of the debtor, when at the time of the attachment or injunction, there is information about other imposed distraints or injunctions over the same property;
the scope of the imposed distraint on salary or other remuneration for work, as well as on pension on the receivable of the debtor from the third obliged party to the minimum wage;
the order in which the receivable is satisfied, secured by a mortgage registered after the registration of injunction over the property and others.