Three draft laws have been submitted, proposing a number of amendments to the Non-Profit Legal Entities Act, which may be broadly categorized as follows:

1. Restrictions and sanctions applicable to Non-Profit Legal Entities

• Introduction of a prohibition on the performance of activities that overlap with the functions of state and municipal authorities;
• Introduction of a prohibition on the delegation of public powers to non-profit legal entities;
• Provision for the dissolution of a non-profit legal entity in the event of a breach;
• Introduction of significant administrative fines and pecuniary sanctions in the amount of EUR 25,000, or EUR 50,000 in respect of natural persons, as well as confiscation of assets of legal entities in favour of the State;
• In the event of a repeated breach, fines in the amount of EUR 100,000 for natural persons and EUR 500,000 for legal entities;
• Introduction of restrictions concerning the names of non-profit legal entities;
• Establishment of an obligation to disclose information relating to donations.

2. Organization and Governance

• Provision for the holding of general meetings remotely via videoconference;
• Regulation of remote participation, quorum, and voting;
• Introduction of a simplified procedure for the termination of the powers of members of governing bodies by means of a unilateral written notice of resignation submitted by the respective member of the management board or the manager to the association.

3. Administrative Provisions

• Introduction of a requirement for the Executive Director of the Registry Agency to adopt methodological guidelines for the identification of inconsistencies, in particular with regard to the requirement that the name of a non-profit legal entity must not be misleading and must not be contrary to public morals;
• Provision for the application of a similar approach under the Commerce Act.

Entry into Force

The draft laws provide that they shall enter into force upon their promulgation in the State Gazette, unless expressly provided otherwise.

Certain provisions are subject to a transitional period of up to three months from the entry into force of the Act.