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Activity of the Parliament on June 28 – July 11, 2004

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June 28 — July 2, 2004

During the aforesaid period, Parliament was busy passing legal initiatives submitted by the President. These documents, especially the Code on Science triggered harsh debates both among the legislators and scientific community.

Law on Completion of the Law on Citizenship

The law drafted by the Presidency is aimed at facilitating acquiring citizenship by persons who resided or still reside on the soil of the Republic of Moldova (including Transdnistrian region). Under the law, persons who resided on the soil of the Republic of Moldova prior to June 23, 1990 and still reside there are considered to be citizens of the Republic of Moldova. Currently, citizenship is granted with no restrictions to:

Via the same law, Parliament exempted pensioners and disabled from the obligation to pass an exam on language and Constitution when they apply for citizenship. Opposition in Parliament criticized the latter provision. Still it was included in the law, on the grounds that those persons have neither physical nor psychological ability to comply with the provision.

Law on Modification of the Law on Preventing and Fighting Money Laundering

The law raised the minimal ceiling on which banking form is to be filled by the natural or legal entity within three months. Respectively, a new norm was added to Article 4 of the law thereby natural entities are obliged to fill a special form for each transaction in cash exceeding 300,000 Lei, while organizations will have to do so for each transaction exceeding 500,000 Lei. The form shall be filled in case the transactions made throughout the month reach the aforesaid amount. It shall be submitted to Centre for Fighting Economic Crime and Corruption within 15 days, which may control any suspicious transaction and trace the money.

Law on Modification of Legal Acts on State Budget

The law refers to the fiscal and budgetary policy Government intends to promote in 2005. It is recommended in the next year to:

Government believes those measures would boost economy, as businesses would be able to increase manufacturing output and invest in development.

Those fiscal measures would help bridge the gap between the exemptions to the income tax of natural entities and subsistence level. Also, they will contribute to the legalization of income of businesses and natural entities, which in turn would enlarge fiscal base and increase budget revenues.

Government is to take this law into consideration when drafting state budget for 2005, which is due to be submitted to Parliament by October 1.

Draft Code on Science and Innovation

The document was developed by the Academy of Science at the initiative of the Presidency and is aimed at “improving the climate in science and innovation, perfecting cooperation in the field, establishing adequate conditions for bolstering scientific research and transfer of know-how”. There are several factors that makes a reform imperative:

The Code has three major tasks:

  1. establishing an innovation climate by creating juridical, fiscal and organizational incentives for those who are doing science, bolstering innovations and transfer of know-how;
  2. establishing a social comfortable and dynamic social climate, thereby science, education and innovations would become prestigious, where dispersed professional resources would turn into an ever-growing intellectual capital;
  3. establishing a new democratic administration culture, based on knowledge, openness and competence.

The Code would acknowledge and strengthen the role of the Academy of Science, which shall become “the only public institution of national importance working in the field of science and innovation”. In addition, all the scientific projects shall be exclusively funded via the Academy, for which purpose it would conclude a four-year Partnership Agreement with the Government

The draft also envisages a change in evaluation methods and attestation of scientists. It is proposed to establish a National Council on Accreditation and Attestation — the public authority in evaluating organizations operating in the field of science and innovation and attesting professors in the field. All the state scientific institutions shall obligatorily undergo accreditation, whereas accreditation of private or non-governmental organizations shall be up to those organizations. Organizations that undergone attestation shall receive the institutional membership or affiliated membership. The first one entitles the organization to full funding of its scientific or innovation projects from the state budget.

Another important provision is the establishment of the Agency for Protecting Intellectual Property by merging the Agency for Protecting Industrial Property and Copyright Agency.

The draft also provides for:

The draft gathered a rich harvest of criticism. Many deputies, including in the majority faction opposed the draft on the grounds that its enforcement would only boost bureaucracy and concentration of resources which might in the end discourage any initiative from affiliated institutions. It is still unclear how academic community feels about the draft as it was not subject to public debates. In the end the Code was adopted in the first reading, meanwhile the provisions should be worked out.

Draft law on e-commerce

Yet another initiative of the President envisaging e-commerce was passed in the first reading. The draft establishes the legal framework for e-commerce, principles of state support and regulation of e-commerce, etc. The main provisions refer to:

Draft law on modification of the Law on Manufacturing Cooperatives

The draft is aimed at undercutting negative trends in agriculture and also boost the establishment of manufacturing cooperatives in agriculture.

Under the draft, members of the cooperative voluntarily transfer into the cooperative property agricultural plots for a 30 years period. The cooperative would use the agricultural plots in line with the law and bylaws of the cooperative and would act in the best interest of the plot owners.

The draft was harshly debated on the grounds it would revive soviet type kolkhoz and would deprive owners of their land. Lawmakers argued that it is necessary to concentrate the plots as well as production means.

July 5–9, 2004

This week Parliament continued examining draft laws submitted by the Presidency as well as several draft laws aimed at improving the situation in agriculture.

Law on Single Tax in Agriculture

The law provides for establishing a single tax in agriculture, which is to be tested in a pilot project in Taraclia rayon. The single tax would include the income tax, VAT (except for VAT on imports), taxes on real estate, taxes to road fund, tax on water and territory planning. The other taxes and fees, not subject to this law, shall be paid according to the law. The law defines the subjects of the law, tax quota and exemptions.

For more details see Parliament Activity June 7–11, 2004

Law on the Subsidized Insurance of Risks of Agricultural Production

During the final reading of the law opposition suggested that state should cover 60% of the insurance. As they failed to provide solid arguments in support of their position, majority faction rejected the suggestion arguing that opposition could have operated the amendment while it was in power.

The importance of the law stems from the fact that Moldovan agriculture is very much buffeted by natural calamities. That is why insurance market in this field is practically absent — insurances in agriculture accounts for only 2% of the total insurance market, and this despite the fact that agriculture is the future of the country’s economy. So far, state’s assistance to farmers upon natural calamities has been quite meagre.

The law aims at establishing a transparent mechanism of boosting insurance in agriculture so as to bring stability in agriculture development. The law defines insured risk as any natural calamity that incurs a damage to farms or fisheries, or any other unfavourable event producing damages. Preliminary estimates have indicated that allocations from state budget worth 40 million Lei are necessary for subsidizing insurance of the risks of agricultural production, with 15 million Lei needed in the first year.

Law on the Modification of Legal Acts on Minors Leaving the Country

The law was developed at the initiative of the President and made passport compulsory for minors when leaving the country, as well as consent of both parents whenever the child is leaving for permanent resident in other country. Under the law, any citizen may get a passport even upon birth (currently only children older than 10 are entitled to passport).

The law is intended to prevent traffic of minors. Christian-Democrats objected the amendments on the grounds they would put additional financial burden on the parents. They also accused ruling party of trying to secure as many revenues to the state budget in view of upcoming electoral campaign.

Law on Approving Regulation on Badge and Identity Card of the Elected Officer

Parliament approved the sample and regulation on elected officer’s identity card and badge. Identity card is the main document confirming the prerogatives of the elected officer as an official person on the soil of the first or second level administrative-territorial unit. Under the law, both identity card and badges shall be produced by the Government and issued to elected officials: mayors (for local councillors and deputy mayors); Chairperson of the rayon (for rayon councillors, rayon mayors and rayon deputy Chairs); Prime-Minister (for rayon Chair, Mayors of Chisinau and Balti).

Several objections were voiced with regard to translation of the documents into English. For the second reading deputies agreed that the document should be only translated into Russian.

Resolution on approving the structure of the General Prosecution

Under the resolution the following are to be part of the Prosecution General:

Organizational chart, internal structures, roles and responsibilities of each department shall be outlined in the Prosecutor General’s decision. During the hearing in Parliament it was mentioned that 30% of the employees from the central apparatus are to be reduced and transferred to regional or specialized structures of the Prosecution Office.

Resolution on enforcing state budget for 2003

The Report on enforcing state budget for 2003 was approved via the said resolution, namely:

The report indicates continuous economic growth, a 6.3% GDP growth over 2002 or 27,297 million Lei. On the other hand, budgetary and fiscal policies promoted by the Government throughout 2003 produced a smaller impact than expected. Thus, budget fell short of 95.9 million Lei, namely:

State budget provided for transfers of funds for territorial development worth 708.3 m Lei, however only 89.2% of the budgeted amount was transferred. Some of the allocations were un-proportionally distributed, for instance Balti Municipality and Gagauz Yeri received 100% of the funds, whereas other regions only 78%.

To address the shortcomings identified the Government is to take certain measures:

Draft Enforcement Code

Draft Enforcement Code was passed in the first reading on November 23, 2000 and was to be worked out for the second reading. Hence, a number of important acts were passed: Civil Code, Penal Code, Code of Penal Procedure, Code of Civil Procedure, Labour Code, etc. Meanwhile, the draft was submitted for expertise at the Council of Europe and other relevant bodies.

The draft of the Enforcement Code examined by the Parliament was different from the initial one, which was passed in the first reading. Hence, it was decided to revote the text, it included two chapters:

The Code includes 330 articles and refers to: independence of the executors and the status of the officers of the Department of enforcement and executors, penalty for the failure to comply with the requirements of the judicial executor; establishing Complaints Department thereby civil society will monitor how legal provisions are enforced.

Draft law on precious metals and gems

The draft passed in the first reading outlines the state policy in the field and state control over production, use and circulation of precious metals and gems. The law defines such notions as precious metal, gems, ingot, jewellery items, jewellery, scraps containing precious metals, scraps containing precious metals and gems.

The draft also provides for: state goal, tasks, and control over activities involving precious metals and gems; rights and obligations of the legal and natural entities working with precious metals and gems; state treasury of precious metals and gems; production, processing, use and circulation of precious metals and gems.

The draft seeks to define the legal framework in the field of precious metals and gems, establish a level playing field for all the businesses, and regulate the market. Currently the market is flooded with smuggled items of questionable quality with no state mark applied, which are sold at lower prices than the domestically manufactured ones.

Draft on indemnities for temporary inability to work and other social payments

The draft passed in the first reading envisages the social insurance fund. The law provides for unifying all the types of social assistance, such as indemnity for temporary inability to work; maternity indemnity, indemnity for raising a child or raising a seak child; unemployed aid, etc.

Draft law on amnesty on the tenth anniversary of adopting the Constitution of the Republic of Moldova

The draft is yet another initiative of the President of the Republic of Moldova. On July 29, 2004 we would celebrate tenth anniversary of the Constitution. On this occasion it is recommended to amnesty convicts. The law outlines the category of convicts subject to amnesty such as minors, pregnant women, 1 and 2 degree handicapped, and persons older than 69 years of age. Also the law provides for reducing the term of conviction provided material damages are redressed.

It is expected that the move would somehow improve the situation in the penitentiary system, which is overcrowded and under funded.

Draft law on electronic document and digital signature

Again the draft is an initiative of the Presidency. It seeks to establish legal conditions for the circulation of e-documents and digital signatures. The law shall regulate social relations between legal and / or natural entities upon creating, transmitting, receiving, storing and other use of e-documents and digital signatures including when making transactions, payments, as well as other cases provided by law. The law defines such notions as private key, public key and e-document.

It is expected that the e-document would be used by legal and natural entities in all the fields. Also, several norms are to be introduced with regard to electronic circulation of the documents, legal force of the digital signature, certification of public keys and digital signatures, state control in the field, etc.

June 14–27, 2004 July 12–25, 2004