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Varadinov & Co.
Legal Bulletin

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The council of ministers approved a decree of National program for energy efficiency of residential buildings, about the conditions and terms for granting gratuitous financial assistance under the program and appointing of the bodies responsible for the implementation. Popular as the program for remediation the measure shall be implemented on the territory of 265 municipalities about 2 years with the budget of 1 billion leva. In availability of more funds the budget shall grow and the term shall be extended. To obtain the gratuitous financial assistance the owners shall register associations under the conditions and terms of Art. 25 par. 1 of Management of residential (flour) property act, which are subject of registration in the public register of the corresponding municipality/region and in BULSTAT register.

Full 100 percent funding shall be granted to the associations which applications are approved according the order of their submission. The owners association which application is approved shall conclude a contract in order to entrust the mayor of the corresponding municipality to represent it in exercising the rights and executing the obligations according the program. The right of gratuitous financial assistance is established for the owners association as signing the contract for target founding between the mayor of the municipality, Bulgarian Development bank and the corresponding district governor. The assistance shall be granted after the end of the renovation and is provided by direct acquittal from the state budget to the obligations of the owners associations on acquiring the founding.

Coordinator of the program is Ministry of regional development and public works, on which budget founds for the program are transferring. The mayors of the municipalities are responsible for overall technical and financial administration of the actions for renovation of the buildings, located on their territories, and the district governors signed the contracts for target founding and monitor the process for renovation of the residential buildings. The Minister of regional development and public works annually by March 31 submit a report to the Council of Ministers on the progress of the realization of the program for a previous year.

The amendments in Agriculture land ownership and use act provide measures for counteractions against abuse with use of agriculture lands with purpose draining of the public funds. The system for the live- stock identification and registration of the stock- breeding objects becomes integrated, as in submitting of two and more non registered contracts in the Registry office shall be registered the contract referred in the declaration submit by the agriculture land owner. If the agriculture land owner does not submit the declaration the municipality agriculture office shall notify the parties on the contracts. To the application the agriculture land users shall attached a declaration, which represents that they are not related persons within the meaning of the Commerce act with persons, who have not paid their land obligations for the previous agriculture years. In preparation of the project of distribution in the work of the commission participate agriculture land owners and/or land users in the correspondent agriculture land, which are declare in the explicit manner the desire to participate in the procedure for creating the areas for use.
The agriculture land users shall deposit in advance the amount of the average annual rent payment for the agriculture land in a transit budget account in the corresponding regional Agriculture directorate. The amounts are on deposit and shall be paid to the entitled persons from the regional Agriculture directorate by the order of director of regional Agriculture directorate.
Under par. 4 in period of 10 years. For agriculture land users, which are not paid the amounts for the used lands and/or are related persons the participation in the agreement and granting of right of use of the agriculture land are not allowed. The mayor shall decide on rent payment after the decision of the municipality council.
The possibility for changing the came in to force plan for agriculture land division and the approved map of the existing or restorable on the terrain old real boundaries of the agriculture lands as the map of the restored ownership for creating of consolidated agriculture lands by the order of the Minister of Agriculture and food is regulated in details. The order shall be issued on the basis of a written agreement with authenticated signatures of the agriculture land owners and approved consolidation plan. When the consolidation plan includes agriculture lands- state or municipality property, the agreement shall be signed by the Minister of Agriculture and food, respectively by the mayor of the municipality or by the persons authorized by them. On the basis of the approved consolidation plan the regional Agriculture directorate issue decisions and plots for the consolidated of agriculture lands. The conditions and the order for preparation and approval of the consolidation plan shall be determined by the regulation for the law implementing.

New National Audit office act, which replaced the adopted one at the end of 2010, was adopted by the National Assembly. The main novelty is the reorganization of the audit institution in the collegiate body comprising 9 members. The considerations for the restoration of this structure of the Audit office are that the introduction of the model of President and Vice- President have made the Audit office the sole body in contravention of collegiate principal promulgated by the constitution.

The fears that the sole model leads to violation of the principle of objectivity and impartiality, car introduced by that model audit teams are in hierarchical subordination to the President of the Audit office. According this model also established in the Constitution parliamentary control is ineffective due to the lack of the opportunity for internal self- control among the members of the Audit office.

With the new Act is abolished the figure of Vice-President and is provided the possibility for members to be elected persons with a wide experience and qualifications. The purpose is Audit office to return to its main function - analysis of the public sector through execution audit, rather than concentrating on financial audit and inspection control. This is in line with international trends to not limit the modern audit just in legality control but to control of appropriateness, effectiveness and economy in spending of public finances.

Consultative Council of the Audit office, which is neither established in the Constitution, nor has real functions outside advisory function, shall be abolished. Another major point in the Act is the abolition of the function of administrative penalties under Administrative violations and penalties act which duplicate the functions of the Public financial inspection agency. The status of the Audit office as independent budget authorizer shall be restored. The structural changes provide that the audit activity shall be undertaken by audit departments, headed by the members of Audit office, which powers and responsibility for quality of the activity are regulated in details. In the new act the competition principle for recruitment of audit staff shall be in to force, but the requirement for the auditor to have a certificate for internal audit shall be abolished. The motive is that this requirement is contrary with the nature and the methodology of the external audit as determinant the functions of the Audit office.