Legislative Report

April 2017

CONSTITUTIONAL TRIBUNAL Entry into force: October 1, 2016 GOVERNMENT SENATE PRESIDENT Amendments to the law on pensions and December 9, 2015 December 2, 2016 December 19, 2016 disability payments from First reading Passed without Signed the Social Insurance Fund December 13, 2016 amendments and some other laws Third reading

GAMBLING Entry into force: April 1, 2017 Amendment to the GOVERNMENT SEJM SENATE PRESIDENT law on gambling December 15, 2016 December 16, 2016 December 28, 2016 Third reading Passed without Signed amendments

CREDITOR'S PACKAGE Entry into force: June 1, 2017 Amendment to certain GOVERNMENT SEJM SENATE PRESIDENT laws facilitating January 23, 2017 March 30, 2017 April 11, 2017 debt collection First reading Passed with Signed 7 April, 2017 amendments Senate's amendments approved

EXTENDED SEIZURE Entry into force: April 26, 2017 Amendment to the GOVERNMENT SEJM SENATE PRESIDENT Penal Code and January 26, 2017 March 16, 2017 April 11, 2017 some other laws First reading Passed with Signed March 23, 2017 amendments Senate’s amendments approved

NEW SELECTION MODE OF KRS MEMBERS Prospective entry into force: Q2, 2017 Draft amendment GOVERNMENT SEJM SENATE PRESIDENT to the law on the National Council of March 7, 2017 April 7, 2017 the Judiciary (KRS) Adopted First reading and some other laws

REVIVAL OF COURT ASSESSORS Prospective entry into force: Q2, 2017 Draft amendment to GOVERNMENT SEJM SENATE PRESIDENT the law on the National March 14, 2017 April 7, 2017 School of the Judiciary Adopted First reading and Public Prosecution and some other laws March legislative news

IMPORTANT RULING WARSAW APPELATE COURT: UOKIK FINE FOR TELECOMS CUT HUNDREDFOLD Ruling of March 1, 2017

In December 2009, competition regulator UOKiK’s officials planned to search headquarters of four telecoms, including Polska Telefonia Cyfrowa (ERA, currently T-Mobile), suspecting illegal collusion on a mobile TV market. A receptionist and security denied entry to the regula- tor’s representatives and agreed to it only after hour-long discussions. UOKiK head at the time Małgorzata Krasnodębska-Tomkiel decided PTC intentionally obstructed control in order to hide evidence and fined the company for EUR 30 mln. According to PTC, the complications arose from a requirement to inform a management board member about the control. In 2015 the case was tried by SOKiK, which ruled the UOKiK’s fine is excessive and lowered it to EUR 0.3 mln. An ap- pelate court upheld the decision in a binding ruling. The PTC case yet again proves fines imposed by Krasnodębska-Tomkiel were excessive.

01.03 Another ConTrib hearing called off.The complaint was 09.03 Gowin’s comments on law on hospital network. 2016 withdrawn by the group that filed it; local government 2016 MinHea Konstanty Radziwiłł and deputy PM Jarosław activists who were unable to familiarise themselves with Gowin announced amendments to the new law on the Cabinet and Sejm’s stance as they received it too late. the hospital network. Following joint work, they proposed It centred on the transfer of new tasks to the local autho- that the amount of money allocated to hospitals depend rities without funding. The group asked that the hearing on the actual number of services provided. The list of be postponed, but the Tribunal refused. The local activists medical services financed within the current competition- also had doubts about whether judge Mariusz Muszyński, -based model will also be extended. Gowin was the law’s who joined the adjudication panel at the last minute, has main critic within the government; at the CouMin meeting the mandate to issue ConTrib verdicts. he presented a dissenting opinion on it, which Beata Szydło rebuked him for in public. 07.03 Cabinet work on draft law on KRS. Ministers will today 2016 discuss the amendment to the law on the National Coun- 15.03 New career path to become a judge. The Cabinet cil of the Judiciary (KRS), which terminates the mandates 2016 adopted a draft amendment to the law on the National of current members 30 days after the law enters into School of the Judiciary and Public Prosecution, intro- force. The new provisions would also split the council ducing guaranteed employment in assessorial posts for into two chambers, one made up of judges and the other its graduates and preventing people in other legal jobs including MPs. Judges will be limited to two terms. Many (advocates or legal advisers) from serving as judges. legal specialists say that the changes will curtail judges’ The draft also increases the MinJust’s influence on how independence. For more on the draft law, see our analysis. the school is run. He will set the number of people admit- ted for application training programmes and appoint 08.03 Government to ensure television subscription fees are its programme council. The draft was criticised by 2016 paid. The Government Legislation Centre has published the National Judiciary Council, among others. a draft amendment to the law on subscription charges on its website. Television providers will need to provide 17.03 Tribunal deems cyclical gatherings constitutional. Poczta Polska with its customers’ data. Consumers will 2016 ’s president sent the amended law on assembly to register their television sets at their service providers, ConTrib before signing it. had doubts about who will also inform Poczta. The law foresees a penalty the provisions introducing cyclical gatherings, which of 30 times the subscription fee for using an unregistered would have priority over other demonstrations organised television set. The draft is going through social consulta- in the same place at the same time. The Tribunal deemed tions, which will last until March 24. the provisions constitutional, with four judges filing dis- senting opinions, including Piotr Pszczółkowski, who was voted in by PiS. According to the President’s spokesman Marek Magierowski Duda still has his doubts about the law, despite the ruling.

Polityka Insight – Legislative Report - April 2017 2 21.03 Gliński confirms law on media ownership is being prepared. 10.04 Tribunal judges want a general assembly. Eight of the 15 2016 The MinCult announced that his ministry will present 2016 ConTrib judges called on chief justice Julia Przyłębska to a draft law on the deconcentration of the media market in schedule a general assembly attended by Andrzej Duda. Poland by mid-2017 and a draft improving the collection They cited incorrect shaping of the adjudicating bench, of television subscription payments within two or three unlawful replacement of Przyłębska by Mariusz Muszyński months. Piotr Gliński also said that developments such and restrictions on the transparency of proceedings. The as Axel Springer CEO Marek Dekan’s letter could speed letter was signed by seven judges chosen by the previous up work on the law on deconcentration. In his letter Sejm and Piotr Pszczółkowski, who was chosen by the to employees at the company’s Polish branch, Dekan current one. It highlights the open conflict at ConTrib, in described Donald Tusk’s re-election as EurCou president which judges appointed by PiS have an advantage. as a victory over Jarosław Kaczyński. The Sejm culture committee is to discuss the letter at an extraordinary 12.04 PiS may drop idea of limiting mayors to two terms. meeting on March 22. 2016 A decision on whether to limit mayors to two terms will be made by the end of May, said deputy chairman of the 23.03 Sejm rejects motion to dismiss Szydło. 238 MPs Sejm local government committee Grzegorz Woźniak 2016 rejected PO’s motion on a constructive vote of no con- (PiS). He pointed out that no draft on this has been prepa- fidence in Beata Szydło’s Cabinet and to appoint Grzegorz red, as PiS has prioritised other work, including the law on Schetyna PM. 174 MPs from PO, Nowoczesna and PSL the Warsaw metropolis. Jarosław Kaczyński announced voted in favour of it. Schetyna accused PiS of “treading the two-term limit a few weeks ago. PiS might abandon it, the same road as the Russian dictatorship” and called though, to avoid kindling conflicts with local government. Jarosław Kaczyński the “de facto leader of the worst government since 1989”. According to the PM, PO’s 13.04 PiS wants to control appointment of top judges. motion was the “latest act in the opposition’s clownish 2016 The MPs’ draft amendment of the law on the court system play”. Although the motion did not pass, it strengthened would make the chief justices of appellate, regional and Schetyna as the leader of the opposition, as it was backed district courts appointed by MinJust, without an opinion by Nowoczesna and PSL. from the judges’ assembly and the National Judiciary Council. The draft also broadens the scope of declarations 28.03 Biernat may not return to Tribunal. The ConTrib chief of assets that judges need to provide and enables MinJust 2016 justice ordered that Stanisław Biernat use 57 outstanding to dismiss current chief justices within six months after days off. This means that he will practically not return to the new provisions enter into force. The changes would work, as his term ends on June 26. Biernat said that he significantly increase MinJust’s influence on the courts would like to return to adjudication at the start of April. and go against the separation of powers. His absence will affect the balance of forces at ConTrib, which currently has eight judges chosen by the current Sejm, though Piotr Pszczółkowski increasingly rules aga- inst the PiS political line. If Biernat returns, judges chosen by PiS (not counting Pszczółkowski) will be in a minority of seven to eight.

PEOPLE ON THE MOVE: Eligiusz Krześniak Piotr Walczak Beata Marczak Jarosław Pinkas became managing became deputy became deputy Pros- became the govern- partner at the law firm MinFin and deputy Gen for organised ment plenipotentiary Squire Patton Boggs head of the National crime and corruption for food safety Tax Administration

Polityka Insight – Legislative Report - April 2017 3 KEY BILLS Act title How data protection Draft bill on personal data protection Person responsible: Maciej Kawecki, adviser to law will change MinDig Person responsible The Ministry of Digitisation released a draft Maciej Kawecki, adviser to MinDig bill on personal data protection. It will Outlook for passing implement the EU regulation into Polish law. Q4 2017

Maciej Czapluk, Legal Affairs Analyst

The draft is to introduce into the Polish legal system a Europe- Substantial fines for enterprises. The regulator’s top official an directive setting out new obligations for companies and will have an ability to impose fines on companies failing to me- institutions working with personal data. The directive is being et the EU directive’s new requirements. The penalties could introduced directly, however, member states can regulate so- even reach EUR 20 mln or 4 per cent of the company’s global me issues (for example maximum age of adolescents requiring turnover. Such fines will be imposed for elementary breach of a parent’s consent for data manipulation) on their own. regulations for personal data processing.

Work on the bill is being carried out at MinDig under supervi- Minimal fines for public institutions. The draft regulation also sion from Maciej Kawecki, an adviser in Anna Streżyńska’s introduces penalties for public institutions (ministries, tax political cabinet. The draft is still incomplete, lacking regula- offices, or the Polish Social Insurance Institution) for failing tions overwriting sectoral solutions - for example for banking to observe the directive. The UODO will take into account and insurance industries. The ministry plans to release its full premeditation and extent of violation, but the fine will not version in June 2017. exceed PLN 100,000.

One stage administrative proceedings. The ministry wants The draft will leave a mark on all entities processing personal to abandon a two-tier procedure in cases relating to perso- information. The bill’s requirements will cover enterprises, nal data infringements in favour of a single tier procedure. banks, telecom operators, internet companies, as well as pu- It would mean a party not satisfied with a ruling by the Perso- blic institutions gathering personal data. nal Data Protection Office (UODO) will not be able to motion for a review of the decision. Potential appeal will be sent to an administrative court. However, the draft allows the UODO LEGISLATIVE RISKS head to lift his decision and issue a new one, after he considers The MinDig’s proposal does not include implemen- an appeal as justified. tation regulations and bypasses amendments to in- dustry-specific regulations. So far, the controversial Independent civil procedure. The draft will allow for a civil part of the regulations published by the ministry procedure to be started regardless of a regulatory process. could be the transfer of competences to administra- Regional courts would be the proper instance. The civil pro- tive court, as it would prolong the procedure and cedure would be aimed at receiving compensation rather than delay rulings. The courts will also not be looking at penalising the guilty party for breach of regulations, which into the heart of the matter related to fines, rather would be the goal of an administrative process. The draft wo- than their formal legality. Poland has to implement uld require the UODO’s head and courts to share information the directive by May 25, 2018 and the draft bill is about ongoing procedures, although it would not result in au- most likely to be approved by the end of 2017. tomatic suspension of one of the processes.

Routine controls or based on received information. The pro- posal lays out a procedure for controlling implementation of data-protection regulations. Audits would be carried out by the authority’s employees empowered by the regulator’s head. They will have an ability to enter controlled premises and have access to documents and information related to the subject of the audit. If they confirm infringements, the UODO’s chief will launch an administrative procedure.

Polityka Insight – Legislative Report - April 2017 4 COURTS AND PROSECUTORS

Assessors to return 14 March 2017 Cabinet endorsed the draft on new career to courts path to become a judge 20 February 2017 Ministry of Justice wants to create W Sieci: Ziobro on the changes to a new core of court officials. In the the judiciary future they would become judges. 31 January 2017 Rz: KRS reform will lead to war between MinJust and judges 20 January 2017 Ziobro announced changes to judiciary

Maciej Czapluk, Legal Affairs Analyst

The new bill reinstates the position of an assessor. A bill Extensive supervision of the minister. Assessors were nomina- amending Law on National Judiciary and Prosecution School ted by a president after consultation with the National Coun- (KSSiP) was approved by the government on March 14. It re- cil of the . Following the amendment the introduces institution of court assessors, officials who have prerogative will be MinJus’s alone. The minister will also be qualifications to rule in cases. They will undergo a trial period appointing place of work for the assessors and move them at after which they will be eligible to receive a permanent judicial will, for example justifying it with elimination of a position. nomination. Assessors were operating in the Polish judicial MinJus will additionally present the council with a registry of system until 2009, when Constitutional Tribunal’s ruling da- nominated assessors with motions to grant them responsibi- ting back to 2007 forbid them from ruling. ConTrib decided lities of a judge. The council will only have 30 days to object to only a judge can perform judicial functions. the minister’s decision. Given the fact the list will have dozens of names of KSSiP graduates, KRS control will become limited. Taught in Kraków-based ministerial school. KSSiP located in Kraków will play a fundamental role in the assessors’ educa- Assessors less independent than judges. According to the tion. Once the amendment is enacted, MinJus will seize bigger constitution, judges are to be independent and autonomo- control over it thanks to significantly greater influence over us. The constitution does not envision the same protection the school’s programme board. MinJus will also have a gene- for assessors serving judicial responsibilities, so ConTrib has ral oversight over judicial apprenticeship and set enrolment forbidden them from ruling. The new legislation will allow limits. The rule requiring graduates to work for three years them to rule in regional courts, with an exception of decisions at a court within six years of graduation will be maintained. regarding detention, launching and stopping investigations, Otherwise they will have to return scholarship received during and familial law. Nomination of an assessor to a judge depends studies. on MinJus decision, so they could make verdicts in line with the ministry’s expectations. Court postings mainly for assessors. Everyone who graduates from judicial apprenticeship at KSSiP will be nominated to the assessors of the court position. Order of nominations will be WHAT’S NEXT determined based on exam scores. It would mean positions Bringing back an institution of assessors of the assessor will be determined by the KSSiP examination to the Polish judicial system will increase the go- board nominated by MinJus, who will name seven out of nine vernment’s impact on court decisions. Assessors of its members. After a four-year period the assessors will be will take over jobs of judges, who under political automatically nominated to a position of a judge. Additional- pressure went into retirement. Ultimately asses- ly, the bill hampers chances of representatives of other legal sors will become judges whose advancement was professions, notaries, legal advisers, or advocates, to become furthered by MinJus. The ministry is likely counting a judge. They will only be left with remaining vacant positions on post-assessor judges to be less opposed to the after KSSiP nominations. executive branch on political issues than judges who were earlier legal advisers or advocates.

Polityka Insight – Legislative Report - April 2017 5 COURTS AND PROSECUTORS 20 April 2017 Protest of judges against planned changes in How PiS will deal the judicial system 20-21 April 2017 with heads of courts 40. Sejm session will take place. 14 March 2017 The amendment to the law on courts Cabinet endorsed the draft on new career path will enable Zbigniew Ziobro to appoint to become a judge judges loyal to him as heads of courts. 7 March 2017 Cabinet endorsed draft law on KRS 1 January 2017 The law that allows imposing financial penalties on judges enters into force 21 December 2016 Cabinet submits to the parlament draft law increasing the powers of courts’ administrative Maciej Czapluk, Legal Affairs Analyst directors

A group of PiS MPs has submitted a draft amendment to More instruments of pressure. Court heads will still be able the law regulating the court system to the Sejm. It assumes to reprimand heads of lower courts in the event of errors in extending the powers of the MinJus, especially in appointing the running of their institutions. The amendment extends and dismissing heads of courts. Some of the proposals, such the list of those that can be criticised to include head of divi- as the obligation to assign judges to cases on a random basis, sions and section managers. A reprimand can also be combi- had previously been announced by the ministry, so it can be ned with a cut in the special duty allowance of 15-50 per cent assumed that the draft was actually written by MinJus. The for a maximum of six months. The MinJus will be able to im- opposition and local government organisations point out that pose similar penalties on heads of appeals courts. The draft this is another idea from the government that dilutes the prin- also broadens the scope of information included in the judges’ ciple of the tripartite division of power. After the first reading, financial disclosures to include all assets with a value of over the amendment to the law on the National Council of the Ju- PLN 10,000. These instruments will increase the ministry’s diciary (KRS) is already in the Sejm - it envisages its members pressure on heads of courts. being selected by parliament. Judges will retire earlier. The law also changes the judges’ Ziobro will remove rebellious court heads. The law allows retirement age. Currently, it is 67 for both men and women: the MinJus to dismiss all heads of courts within six months the proposal will change it to 60 for women and 65 for men. of the amendment coming into force. Zbigniew Ziobro pro- Judges will be able to continue working beyond that age if they bably will not make full use of this power, limiting himself to notify the MinJus and present the appropriate doctor’s certi- dismissing those who have criticised him in the past. Those at ficate. Ziobro probably hopes that PiS’s constant pressure on risk could be mainly the heads of higher courts (appeals and judges will force them to retire early. The vacancies will then district), who have criticised PiS’s actions concerning the Con- be filled with trainee judges, or officials appointed directly Trib. The project was submitted a few days before the judges’ by the MinJus. protest scheduled for April 20 - those heads who take part in it will probably be dismissed.

Appointment of loyal newcomers. Until now, heads of courts WHAT’S NEXT were also appointed by the MinJus, but an opinion had to be The proposal has been submitted as an MPs’ draft issued on the candidates by the general assembly of a given so does not need to be the subject of public con- court’s judges. In the case of a negative opinion, the selection sultations and will immediately be sent to the Sejm could be blocked by the National Council of the Judiciary committees. The parliament will probably adopt the (KRS). The KRS could also oppose the dismissal of a court new provisions in the second quarter of 2017, to- head. The amendment excludes general assemblies and the gether with the amendment to the law on the KRS. KRS from the selection process. The draft also extends the Ziobro is unlikely to make extensive use of the po- list of people who can become court heads (for example, the wers. He will, however, get a very convenient instru- head of a district court can become the head of an appeals co- ment of pressure and a potential tool to punish the urt), which will make it easier for the MinJus to appoint loyal judges who do not obey him on political matters. judges from lower courts.

Polityka Insight – Legislative Report - April 2017 6 KEY BILLS 1 October 2017 Hospital market hit Law on hospital network is planned to enter into force by Radziwiłł’s law 23 March 2017 Sejm passes law on hospital network The new legislation on hospital network will hit 8 March 2017 Penta fund and Nowy Szpital Group the worst. Gowin’s comments on law on hospital network 28 February 2017 GW: Sośnierz criticises draft law on the hospital network 21 February 2017 Government has adopted draft law on hospital Piotr Semeniuk, Senior Analyst for Legal Affairs network

Sejm approved amendment to law on healthcare services Private hospitals: the worst case. Majority of around a tho- financed with public funds.Ministry of Health will decide on usand Polish hospitals is not only public (owned by local and including hospitals in the network and having at least two-y- central governments), but not even commercialised. They do ear reimbursement contract with NFZ for emergency room not operate as a company, but a healthcare facility. There is (SOR) and general admission will be among requirements. around 100 hospitals that are commercialised and public, and Around 91 per cent of available funding, or PLN 26.8 bln, will these are the ones more likely to be included in the network be distributed through the network. The remaining 9 per cent than entirely private hospitals - either new ones or privatised will be available to hospitals outside of the network based on public institutions. Since around 90 per cent of private ho- existing regulations. spitals have not been contracting SOR services, most of them will urgently have to seek revenue sources alternative to NFZ. Big public hospitals to gain, some municipal facilities to be Highly specialised private hospitals will be an exception and hit. Majority of public hospitals is being controlled by local will receive bulk of the remaining 9 per cent in funding set to governments and some are owned directly by the central ad- be allocated based on legacy regulations. ministration (for example the Ministry of Internal Affairs and Administration’s Central Clinic Hospital in Warsaw). Multi- Hospital chains: dark clouds over Nowy Szpital and Penta. -specialisation facilities offering a wide range of services will The Slovak investment fund controls EMC Instytut Medyczny, be the ones to benefit the most from the changes - these in- a company having ten, mainly privatised, hospitals in its port- stitutions predominantly had contracts signed for SOR units. folio. Share of revenue generated by NFZ for Penta’s company Among public hospitals, units specialised in one or several is higher than in case of the three ambulatory networks heavy- areas could lose out on the change, especially those in smal- weights. Most of Slovak-controlled facilities is unlikely to make ler counties (which is why PSL criticised the legislation) as it into the new chain. Nowy Szpital Group, which owns nine well as some hospitals in Śląsk, where number of hospitals hospitals, mainly privatised county facilities, is in a similar spot. per capita is the highest. Among the three heavyweights, Medicover stands to lose the most, as it owns the most expensive hospital in Poland, loca- Ambulatory networks: most of their revenue is generated out- ted in Wilanów, Warsaw. Its construction costed EUR 40 mln. side of NFZ. Ambulatory services, which do not require hospi- talisation, for years have been the most profitable area of the healthcare industry. It is being dominated by three market WHAT’S NEXT players: Enel-Med, controlled by the Rozwadowski family, The new law will lead to smaller hospitals merging Medicover group, and the biggest player - LuxMed, owned by with bigger counterparts included in the state British Bupa group. The legislation will not affect these com- network. In the beginning the tie-ups will be on panies significantly since, even if they have their own hospi- paper only, but eventually jobs and infrastructure tals, their customers are not being acquired through NFZ, but will be transferred as well. Due to PLN 10 bln debt rather their own clinic networks or, like in case of Medicover, of public hospitals, those that will join the chain will through associated insurance companies. Enel-Med will be not be able to invest quickly, extending queues and hampered the least, as only 3 per cent of its top line is genera- waiting time. Some patients will move to privately- ted by NFZ and it does not have a specialised hospital. -controlled hospitals, especially highly specialised ones. The legislation will reduce private hospitals’ market share by cutting them off from NFZ revenue stream, but could increase share of private funds in financing hospital services. The latter could spur development of private healthcare insurance.

Polityka Insight – Legislative Report - April 2017 7 KEY BILLS Who will be affected by the new gambling law Totalizator Sportowy and Polska Grupa Zbrojeniowa will gain the most, while foreign online casinos will lose.

Maciej Czapluk, Legal Affairs Analyst

On April 1, an amendment to the law on gambling will enter Internet providers fear losing customers. So far, the law allo- into force. Under the law, „conducting activities in the field wed bookmakers to offer online betting with MinFin’s con- of numerical games, cash lotteries, a tele-bingo game and slot sent. If a bookmaker failed to obtain MinFin’s approval, its machine games outside the casino” will be covered by a state website will go to the domain register set up by the domain monopoly. In practice, slot machines will only be available register law and Internet providers will have to block it within in the network of arcades created by Totalizator Sportowy. 48 hours. In addition to a penalty of PLN 250,000, providers The state will also have a monopoly on organising online gam- will risk losing the customers, who may start looking for alter- bling. The law does not change the functioning of stationary native Internet access that would allow to access the blocked casinos, which will operate according to the existing rules. sites.

All online casinos to be blocked. Casinos offering online PGZ to build slot machines for Totalizator. There was specu- gambling will be blocked and their existing customers in lation that slot machines could be supplied by US company Poland lose access to their accounts. The law states that IGT. However, in a statement on March 1, Totalizator an- Totalizator Sportowy will set up an Internet casino with nounced that their production would be commissioned to a state monopoly, supervised by MinFin. The ban will not Wojskowe Zakłady Łączności, part of Polska Grupa Zbrojenio- cover mutual bets organised by bookmakers. The online wa (PGZ) and Exatel, which was acquired by the State Treasu- gambling market, excluding with mutual betting, is worth ry on March 29. MinFin estimates that Totalizator will order about PLN 400 million a year.* 35,000 machines. The total cost is unknown; experts estimate at least PLN 30,000 per machine. PGZ may receive as much Totalizator, biggest beneficiary of the change. In addition to as PLN 1 billion. running an online casino, the company will also have a state monopoly on gambling outside stationary casinos. This was announced by deputy MinFin Wiesław Janczyk and Totali- WHAT’S NEXT zator board member Radosław Śmigulski. The company will The law enters into force on April 1, but some of have the exclusive right to run a network of arcades with slot its provisions (for example, setting up a register machines. According to the law, up to 50 slot machines can of banned Internet sites) will be implemented on operate in one arcade. Totalizator’s revenue may increase July 1. The new regulations main aim is to incre- significantly. It was about PLN 5 billion in 2015. ase tax revenue; unlike foreign online casinos and bookmakers, Totalizator will pay taxes in Poland. After the law enters into force, discouraged players and unsatisfactory revenue to the budget may for- ce MinJust to modify the regulations; for example, it could allow the limited operation of non-state online casinos if they start paying taxes in Poland.

* Data source: Roland Berger Strategy Consultants data for 2013.

Polityka Insight – Legislative Report - April 2017 8 What’s next in legislation

Another draft legislation to reform the judiciary. The first Constitutional Tribunal, a place of conflicts. ConTrib has be- reading of a draft bill changing the way members of the Na- gun to issue verdicts. On March 16 it ruled that the law on tional Judiciary Council (KRS) are selected and bringing assemblies is constitutional after it was sent to the court for back court assessors took place at the April 5-7 Sejm sitting. a review by the president. But the main topic of conversation The legislation will allow MinJus Zbigniew Ziobro to appoint is the conflicts within ConTrib, not its role in setting the law. judges practically without the participation of the judiciary In April, the judges chosen by the previous Sejm and judge community. In addition, a group of PiS MPs put forward draft Piotr Pszczółkowski, who was chosen with the votes of PiS legislation that would allow MinJus to appoint and dismiss MPs, wrote a letter to Chief Justice Julia Przyłębska, asking heads of courts. According to media reports, PiS has already her to call a general assembly with the president’s participa- prepared a draft that would dismiss all of the Supreme Court tion. As a reason for this, they cited the alarming events that judge, including its first chief justice, who attempted to oppo- had taken place at ConTrib, including the role of judge Ma- se the judiciary reforms being prepared by the government. riusz Muszyński, who really rules the tribunal and reads pri- Her dismissal may mean breaking the opposition against the vate correspondence of other judges. In response, the other changes to the justice system. judges also wrote a letter, in which they declare that ConTrib is working properly and there is no need to call a general Changes in health care, as well. The president signed into law assembly. No matter how the dispute will continue, ConTrib a bill that introduces the so-called hospital network. These is currently just a facade and is not fulfilling its constitutio- will include hospitals that for at least the last two years had nal role. contracts with the NFZ that included specific procedures (such as a surgery or maternity unit). MinHea Konstanty Ra- Uncertain fate of the ban on Sunday shopping. Work on dziwiłł fought a brutal battle with Deputy Prime Ministers the civic legislative draft on the ban of shopping on Sunday is and Jarosław Gowin over the shape of continuing in the Sejm permanent subcommittee on markets. the legislation. The functioning of the health care system after The last sitting took place on April 20. Subcommittee cha- the implementation of the controversial law may be key to ir Jan Mosiński (PiS) said after the meeting that in order to Radziwiłł’s future in the government. Still up in the air is the come up with clear rules on Sunday shopping, the subcom- fate of an amendment to the law on pharmacies, which would mittee will need another 3-4 sittings, and not just two as pre- introduce the rule that only a pharmacist may be an owner of viously expected. The cabinet has yet to present its official a pharmacy. The draft has been criticised for reasons inclu- position on the matter. It is possible that PiS’s strategy may be ding concerns that it would limit the freedom of economic to drag out the work on the draft under the guise of “attempts activity. But MinHea is determined to push through the chan- to reconcile various interests”. Without a precise position by ges, highlighting that the regulation would have an especially CouMin (even an unofficial one), Sejm is unlikely to pass the positively effect on small, local pharmacies and will increase legislation. The cabinet may want to wait to make a decision the safety of the patients buying medicines. until mid-year, when it will be easier to assess the country’s economic and fiscal situation.

Sejm sessions: January 13-15 and 27-29, February 9-11 and 24-26 Senate sessions: January 11-13 and February 1-2 and 22-23

Maciej Czapluk Piotr Semeniuk Legal Affairs Analyst Senior Legal Affairs Analyst (+48) 22 436 73 20 (+48) 22 436 73 19 [email protected] [email protected]

Polityka Insight – Legislative Report - April 2017 9 Knowledge tailored to your needs

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