Modifies The Regime Juridico Applicable To The Sector Of Health Services

Original Language Title: MODIFICA EL REGIMEN JURIDICO APLICABLE AL SECTOR DE LOS SERVICIOS SANITARIOS

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"Article 1-Introducense the following amendments to the decree with force of law No. 382, 1988, the Ministry of public works: 1.-Add in the second and third subparagraphs of article 5, then the word"networks", the expression"public", in both cases."
2.-Introducense in the article 6 the following amendments: to) replace in your paragraph first the expression "in article 8" by the expression "in articles 8 °, 63 °, 64 °, 65 °, 66 ° and 67 °".
(b) add the following final paragraph: "lenders who by increasing its number of drinking water starts to lose the condition referred to in subsection will have 18 months to adapt to the exempt rules, counted from notification of the aforementioned situation by the Superintendent".
3 Add, then article 7, the following article 7 bis, new: "article 7 bis.-the assets pertaining to the granting them is applicable number 17 on article 445 of the code of Civil Procedure provisions.".
4. Add the following article 8 bis, new: "article 8 bis.-without prejudice to disabilities mentioned in article 35 of law No. 18,046, nor may be directors or managers of companies of health public service people who have been directors or managers of companies which is a public service concession them has expired , unless ten years have elapsed since such revocation. "."
5 insert, in article 9 bis, then of the first subsection, the following new second subsection, passing the current second and third subparagraphs to be subsections third and fourth, respectively: "the provisions of the preceding paragraph shall apply to exploration that require authorization and that are authorized by the General Directorate of waters for the abstraction of groundwater and are also considered works of health infrastructure" , when they are clearly identifiable with a work of use for public health services. "."
6 Intercalanse, then of the first paragraph of article 10, the following second and third subparagraphs, new, becoming current subparagraphs second, third and fourth subparagraphs fourth, fifth and sixth, respectively: "(Se entenderá que dos o más concesiones se requieren una a la otra sólo cuando: a) involved stages of the service whose holding separately is technically or economically inconvenient" ((, or b) involve concession areas whose holding separately be technique or economically inconvenient, or c) one of them is not, technically or economically feasible, surrender in independent award.
The fact of requiring one or more concessions among themselves must be entered in the respective decree granting. This qualification may be left without effect by the Superintendent at any time and founded resolution. "."
7.-Introducense, in article 12, the following modifications: to) replace the number 3 by the following: "3. the identification of sources of water and their respective rights, in the case of the granting of the production of drinking water."
Relation to food basins shall be governed by the relevant provisions of the water code. The rights of use of water shall be of consumptive, permanent and continuous nature. Also, the concessionaire must have property or the use of these rights, which should register in the form and deadlines defined by the regulation.
In the event that it is not possible to constitute consumptive rights, permanent and continuous, the Superintendence of health services may consider for the purposes of the grant application, rights of any nature, that the applicant has property or in use, that feed reservoirs or ponds of regulation. For this purpose, the Superintendent shall issuing a decision founded and based solely on technical considerations.
In the case of groundwater sources the Superintendent may require an updated report certifying the respective flow. The audit institution may request the presence of one of its officials during the tests necessary for such certification. "."
(b) delete the number 4 the expression "and certification".
(c) deleting the final clause.
8 Add, then of article 12, the following article 12 A: "article 12 a. presented the request for grant and with the sole purpose of safeguarding the coherence between the limits of the concession area and the urban expansion areas defined in the instrument for territorial planning, the normative entity will put this request to the attention of the Ministry of housing and urban development and the respective municipalities who must within the period of sixty days, issuing a report with observations that are coming. In the event that made it no means have no comments. The above, without prejudice to the responsibilities that may arise. Nothing in this article not can mean, in any way, a delay in the processing of the request for grant. "."
9 added, then of article 12 A, the following article 12 B, new: 'article 12 B-presented the request, the normative entity can expand the boundaries of the service area, only in order to incorporate building intermediate and peripheral areas whose operation and development, from technical and economic point of view, the establishment of a unitary system make suitable , with emphasis on lower cost for the user. In this case, the applicant may withdraw his application. "."
10 replace the second paragraph of article 15 degrees with the following: "If the rates offered by the applicants shall be higher than those determined by the Ministry of economy, development and reconstruction, communicate les such a situation so that they reestudien your presentation within the period of sixty days and may withdraw its offer. In case of not withdraw and keep this situation, with respect to the applicant whose tender is the lowest tariff, shall constitute the Committee of experts referred to in article 10 of the decree with force of law No. 70 of 1988, the Ministry of public works, which shall be dealt with in the way established in this legal precept. "."
11.-Introducense the following modifications in article 16: to) replace the second subparagraph by the following: "the report shall take a decision on stated in article 14 ° and the other records submitted by the applicant and will propose the enactment of the Decree of the granting of the concession, if estimated from.".
(b) Incorporanse the following new subsections: "the time limit referred to in this article shall be interrupted when the person concerned is in default of complying with the background required by article 14 of this law and which have been requested by registered letter of the regulatory entity."
In any case, the deadline for the report of the Superintendent to the Ministry of public works may not exceed of one hundred eighty days.
In the case that constitute the Committee of experts referred to in the second paragraph of the preceding article, the report referred to in this article shall issue within thirty days following the resolution of the aforementioned Commission. "."
12 replacements the numbers 5, 6, 7 and 8 of article 18, by the following: "5. the program of development of the concessionaire with regard to which the Superintendence of health services has spoken."
6. the tariff level for the award of the concession.
7. the guarantees involved. "."
13.-Introducense the following modifications in article 20: a) disposed of the final dot (.) in the paragraph first and added, then the following sentence: "and other warranty of faithful compliance with the conditions of the service.", and b) replace the second paragraph by the following: "the guarantee of the development programme will recalculate every chance that rates be reviewed considering the advancement of the development agenda. The guarantee of full compliance will be calculated considering the number of users to serve. The methodology to calculate such guarantees will be established in the regulation. The modifications to the methodology, as well as the parameters used in the calculation of the guarantees, only may be made effective the entry into force of the new rates for every provider. "."
14 be replaced the name of chapter III of title II by the following: "for the revocation, transfer of concessions and bankruptcy of the concessionaire".
15.-Introducense the following amendments to article 24: to) add the following letter c), new: "c) if the regulatory entity, founded report of the Superintendency of securities and insurance, ruled that it is not met the provisions of articles 63 or 65 of this Act.".
(b) add the following new final paragraph: "expired a concession, the normative entity may by founded resolution of a technical nature, declaring that the lack thereof affects the comprehensive provision of the service in another, indicating. In this case, the dealer will have within 30 days to demonstrate technical and economically that can maintain the service. Not to do so, shall apply the provisions to) item 26 °. "."
16 Add following final, new subparagraph in article 26:
"A concession expired, the normative entity may by founded resolution of a technical nature, declaring that the lack thereof affects the comprehensive provision of the service in another, indicating. In this case, the dealer will within thirty days to demonstrate technical and economically that can maintain the service. Not to do so, shall apply the provisions to) of this article. "."
17.-Introducense the following modifications in article 27: a) replace, in the second paragraph, the expression "designated warranty" for "designated guarantees", and b) to be added as the following final paragraph: "the provisional administrator of the service will have all the powers of the rotation of the company whose award has been expired, pointing to the law or their statutes to the directory and their managers. You will also have duties and shall be subject to the responsibilities of the directors of the corporations. "."
18 Add the following article 27 bis: "article 27 bis.-are unenforceable the provisional administrator and the successful tenderer of a concession expired, acts or contracts gratuitously, that have been entered into or executed by the licensee expired, to the detriment of the continuity of the provision of the service, from the 120 days prior to the date of the enactment of the decree that the concession expires.
They are also enforceable interim administrator and the successful tenderer of a concession expired, acts or contracts for pecuniary, that have been entered into or executed by the licensee expired to the detriment of the continuity of the provision of the service in bad faith the Contracting Parties. Means that parties are in bad faith, when both were aware of the poor state of the activities of the concession, which led to the expiry of the same.
Shares granted in this article the provisional administrator and the successful tenderer shall expire at 24 months, from the date of the Act or contract. "."
19. replace article 30 °, with the following: "article 30.-the product of the tender will be distributed in the following order of priority: 1." The payment of expenses and obligations for the continuation of the interim administration, including the coasts of this and of the tender.
2nd. The payment of the creditors according to the rules of preference laid down in the articles 2.470 et seq. of the Civil Code.
3rd. The payment of the debts by fines and sanctions that were not satisfied with the implementation of the applicable warranties.
The balance, if any, will be delivered to the owner of the concession expired. "."
20 replaced the article 32 ° by the following: ' article 32.-According to the provisions of article 7 of this law, any legal act, by which transfer the domain or the right of exploitation of a concession, it must be previously approved by the regulatory authority, which, for these purposes, only verify that it is transferred to the domain or exploitation rights certifying that it complies with the requirements of applicable law. " In addition, such transfer shall be the guarantees laid down in article 20 of this law and will be formalized according to the procedure laid down in articles 16 th, 17 th, 18 th and 19 th.
In the case of transfer of the domain or of the right of exploitation of a concession and provided that authorized in accordance with the preceding subparagraph, the acquirer must comply with the conditions prescribed in this law to the concessionaires of public service. The transfer must include in public deed and subinscribirse aside from the entry in the register referred to in article 19.
The transfer of the right of exploitation, implies the delivery total service management being responsible for who operates the health grant and the holder of the same. The transfer of the right will be temporary. "."
21 Agreganse, continuation of article 32, the following article 32 bis, 32 ° bis A and 32 ° bis B, new: article 32 ° bis.-immediately of pronunciation judgment to declare bankruptcy a dealership, the Secretary of the Tribunal will care that she is notified, as soon as possible, the Superintendent of health services.
Pronounced the Declaration of bankruptcy, the bankrupt will be inhibited, full-fledged, administration of the concession and the assets pertaining to it.
Notified the Superintendent of the judgment declaring the bankruptcy of a concessionaire whose concession is in operation, it will have the interim administration of the service, appointing an administrator between natural or legal persons that are registered in the public register referred to in article 27 of this law.
In the case of bankruptcy of a provider whose concession does not even fit into exploitation, the administration shall be exercised by the trustee.
Costs incurred at the time of the Interim Administration will be included within the credits indicated in no. 1 of article 2472 of the Civil Code.
Article 32 bis to.-the regulatory entity will have the tender for the concession and the assets pertaining to it, within a period of one year since it is sign the judgment declaring the bankruptcy. Such tender offer will take effect according to the provisions in article 28 and paragraph first of article 29 of this law.
Likewise, the call for tender for the concession will take place according to the provisions of subsection first article 29.
The award of the concession will fall, fulfilling the technical conditions and the existing rate, the interested party that offers the highest value for the concession and the assets pertaining to it, and which comply with the requirements specified in article 8 of this law.
In the case of not being interested, shall apply the provisions of the final paragraph of article 29 of this law.
Article 32 bis B-all dispute that it might arise between the trustee and the provisional administrator, it will be resolved by the bankruptcy judge, hearing prior to the national bankruptcy attorney and Superintendent of health services. "."
22 Agreganse, continuation of article 33, the following articles 33 A and 33 B, new: "article 33 A.-without prejudice to the provisions of article 22 °, whenever there is the need to ensure the provision of the health service in certain areas within the urban boundary, the Superintendent must be the respective tender.
In case of absence of proponents for the aforementioned tender, or have not been awarded this for proponents noncompliance with the requirements of the law, the Superintendent may require provider operate the health service of the geographic area closest to the area referred to in the preceding subsection, the extension of their concession to this last area.
To exercise the power referred to in the preceding subparagraph the Superintendency, will require compliance with the following requirements: to) the incorporation of new areas should be, in opinion founded of the Superintendency, feasible technically.
(b) the increase of the operational territory derived from the incorporation of new areas should be reasonably practicable to deal with administrative and financially by the provider.
The expansion of the award, as indicated in the second and third paragraphs of this article, will be formalized in articles 17 et seq. accordance with.
Article 33 B.-for purposes of the provisions in the second paragraph of the preceding article, new concession areas must be reported to the provider at the beginning of the tariff setting process established in the decree with force of law No. 70 of 1988, the Ministry of public works, in order to timely and properly consider the effect of the extension of the concession area in the rates for the service.
Without prejudice to the provisions of the preceding paragraph, the Superintendent may, due to established, require the extension of service area in a date intermediate periods of tariff fixing. In this case, rates for the new area, which will govern together with the entry into operation of the expansion will be established. Such fees shall remain in force until the end of the period in progress and must allow the provider to generate the revenues required to cover the incremental costs of efficient operation and investment of its expansion project optimized for the new service area, without prejudice to the possible contributions of third parties. "."
23 replace the final paragraph of article 35 degrees, by the following: "the concessionaire shall deliver the respective background to the Superintendence of sanitary services. In certain cases and founded resolution based on technical backgrounds, it may order the resumption of the service.
The Superintendence of health services may be ordered to the concessionaires the signing of contracts that ensure the provision of raw water, where their absence, by negligence or shortcoming, affects the continuity of the service. The circumstances indicated will be rated in resolution founded the Superintendency.
The company shall keep in a permanent and up-to-date a register covering the period of four years, of all the cuts or restrictions in the supply. Such registration may be revised at any time by the Superintendency.
In the event that the lack of supply of raw water was due to force majeure, and dealers were forced to sign contracts for the provision of it, shall be established new rates that incorporate the effect of the higher cost, if it exists. The new rates will apply as force majeure, without prejudice to the right to the revision of the rates in the terms laid down in article 12 of the decree with force of law No. 70 of 1988, the Ministry of public works is not exceeded. Contracts they will sign with recipients of public bidding and convened by the provider at the request of the Superintendent, whose bases should be put in their knowledge when said entity empowered to require the modification of its terms by grounds. The Superintendent may force the contract only once known the same economic terms and their impact on the new rates. "."
24 Add, then of article 36, the following article 36 bis, new: "article 36 bis.-will be obliged to dealers to maintain the level of quality in the attention of users and the service that defines the rules of procedure, which shall be based on criteria of a general nature and is issued before the granting of the concession."
The levels of quality of lenders, on proposition of the Superintendency, through Supreme Decree that must bear the signature of the Ministers of economy, development and reconstruction and public works may change. This Decree shall be founded and based on objective criteria.
In the event that the provider must comply with the standards referred to in the preceding paragraph, before the end of the term of a tariff period, will be entitled to the revision of the rates in the terms laid down in article 12 of the decree with force of law No. 70 of 1988, the Ministry of public works. In such a situation the new quality requirements shall apply from the same date in which govern the new rates. "."
25 adding, in article 45, following final new subsection: "collection and wastewater treatment systems will not be affected by downloads not considered within the conditions authorized by the Superintendent.".
26 replaced item # 47 by the following: "article 47.-providers will be required to interconnect their facilities when the normative entity deems it necessary in order to ensure the continuity and quality of service in accordance with the regulations in force. Under the same conditions mentioned above if a lender ask for such interconnection, the Superintendency should decision on such a request within ninety days of its receipt.
Arranged networking and in case of lack of agreement between providers on how to perform it, the normative entity, by resolution, determine the rights and obligations of the parties. Rate of interconnection which is established must contemplate, where appropriate, repair of the damages directly generated by the aforementioned interconnection, for the provider that provides the volume of water needed to ensure the continuity and quality of service. "."
27 Agrupanse articles 33 to 47 degrees of title III as chapter I, called "General rules" and adding, as follows from article 47, the following chapter II, new: "chapter II the large consumer article 47 A.-distribution of drinking water and wastewater services concessionaires companies will be required to allow the use of their networks by the concessionaires of production of drinking water or disposal of sewage which hire directly the provision of the respective service with consumers, large end users who so request.
For purposes of the provisions in the preceding paragraph means as a great consumer users who register an average monthly consumption in the corresponding service that is placed inside the 15% higher consumption billed by the respective provider according to the methodology that defines the rules of procedure. This qualification will be permanent.
Article 47 B.-the obligation referred to in the preceding article will be formalized through a contract between the owner of the nets and the interested in using them and will be subject to compliance with the following conditions: 1. the conditions of use of the networks must be technically feasible and will not affect other users within the operational territory of the concessionaire of distribution and collection or the receiving bodies of wastewater. For these effects stakeholders must request a report from the Superintendence of health services, which should require the background to the respective dealer.
2. the owner of the networks will be entitled to receive a payment as consideration for its use, which shall be agreed between the parties. Such payment shall correspond to the distribution of drinking water or waste water collection cost calculated on the basis of the methodology established in the decree with force of law No. 70, of the Ministry of public works, 1988. To this cost costs of enlargement of the facilities in proportion to their use must be added if applicable, costs per concept of measurement and control of physical, chemical and bacteriological characteristics of water transport and other costs or compensation that are considered relevant.
By Supreme Decree of the Ministry of public works, which must also bear the signature of the Minister of economy, development and reconstruction, is established a methodology for the determination of payments by use of networks.
3 will be Faculty of the Superintendent overseeing the conditions of quality and continuity of service contracts that settle down.
4. in the case of no agreement concerning the technical conditions the use of networks or collections, discrepancies will be resolved by a Committee of three experts, appointed by each dealer proprietary networks, another by the interested in using them and the third chosen by the Superintendent from among a roster of experts that you must keep that entity for these purposes. The Commission will be paid by halves between the licensee and the person concerned. The agreements of the Committee will be final.
Deadlines and procedures of the Commission concerned shall be established by a resolution of the Superintendency, notwithstanding that by agreement of the parties should be used other than.
The foregoing is without prejudice to the powers of the Resolutive Commission created by Decree Law No. 211 of 1973.
Article 47 C.-in the event that the use of the licensee's distribution and collection networks was not possible either for technical or economic reasons dealer of production or provision as appropriate, may extend its own facilities to serve the large end users consumers interested. For these purposes the provider will acquire the status of licensee's distribution or collection as appropriate, which will be formalized according to the provisions of articles 17 and following of this Act.
Foregoing the provider will only have compulsory service with respect to large consumer users that the Superintendency founded determines how convenient and feasible to meet by this provider. This obligation will depend on the acceptance of the respective user.
Article 47 ° D-the provision of the service between the licensee's production of drinking water and disposal of sewage and the end user, using own or other dealers, in the terms set forth in the preceding articles, will be formalized through contracts that shall be informed to the Superintendency.
Article 47 ° E-the existence of contracts such as those listed in the previous article released to the licensee's distribution of drinking water and collection of wastewater from its obligation of continuity of service to the end user that serving. If the end user requests by such licensee's distribution and collection be reinstated again as a customer, the obligation of service arranged by the General rules of this law, only may be required once after 5 years from such request.
Dealer distribution and collection remain, however, the responsibility for physico-chemical and bacteriological quality of the water carried through their networks. Also, the dealer will keep its obligation not to exert discriminatory treatment between the referred user and others connected to their networks. These conditions will be controlled by the normative entity according to its powers and breach shall apply the sanctions provided for in the law.
Without prejudice to the provisions of the first paragraph end user may agree with your previous dealer distribution and collection a casual service and support contract.
Similarly, consumers large customers who receive service from a dealer of distribution and according to the terms of this law, may establish contracts of occasional service or backrest with dealers of distribution or collection referred to in article 47 ° C.
Article 47.-rates of the contracts referred to in article 47 ° D F will be free, however, they must be informed to the Superintendency.
Article 47 ° g.-the users referred to in this chapter may act as free clients, that is, they may agree with lenders, through contracts, rates and conditions of service other than the one set by the authority. For this just a communication in writing to the Superintendent containing the background pointing the regulation.
Article 47 H-the prohibition of overlapping of concessions provided for in article 10 of this law shall not apply to the cases referred to in this chapter. "."
28 replaced the article 48 °, by the following: 'article 48.-within its operational territory the concessionaire health services shall be obliged to certify the feasibility of service.
May be, also, granted certificates of feasibility only applicant a grant of health service, subsequent to the public Act established in article 14 and conditioning such feasibility to the final award of the concession, prior favourable report from the regulatory entity. "."
29 replaced item 51 °, by the following: "article 51.-the conditions governing the provision of services between providers and users, the quality levels required in the attention of users and the provision of services and the technical provisions governing the design, construction and commissioning of the residential installation of drinking water and wastewater drainage system" , they will be established in the respective regulations. "."
30 added, after article 52 °, the following article 52 ° bis, new: "article 52 ° bis-providers may establish, construct, maintain and operate systems of drinking water, sewerage and sewage treatment in rural areas, under the condition not to affect or compromise the quality and continuity of public service health.".
31 replaced article 53 degrees, by the following: "(Artículo 53º.-Para los fines de esta ley se entenderá por: a) home installation of drinking water: necessary works to provide this service to a building out of the stopcock placed below the meter or own systems of drinking water, to the artifacts."
(b) home sewage sewer installation: the works required to evacuate domestic sewage from the property, since until the last home camera artifacts, including, or even own disposal systems.
(c) start of drinking water: the stretch of the public distribution network, understood from the point of connection to distribution tubing to the stopcock attached after the meter, inclusive.
(d) home sewage union: the section of the public network of collection from its connection point to the collection pipe, until the last home inspection camera exclusive.
(e) public drinking water distribution networks: are installations required by the estate in accordance with the law, including the spurt of water operated and managed by the provider of the public service of distribution, which connect the residential installation of drinking water.
(f) public wastewater collection networks: installations required by the estate according to the law, including sewer home unions, operated and managed by the provider of the public service of collection, which abut residential installation of sewer wastewater.
(g) connection: is the physical union of the start of drinking water and the mains pipe.
(h) joint: is the physical connection between the home union of sewer and utility of collection pipe.
(i) last home camera: is located on the property of the user, which is closer to public sewage collector.
j) users or clients of a provider of public distribution of drinking water or wastewater collection service: the natural or legal person who dwells or resides in the property that receives the service.
(k) development program: is the investment program for a given time horizon, whose object is to enable the provider replace, extend and expand its facilities, in order to respond to the requirements of the demand for the service.
(l) area of concession or territory operational as appropriate: is the geographical area delimited in territorial size and dimension, where there is compulsory service for distribution of drinking water and wastewater collection dealerships.
(m) certificate of feasibility: is the formal document issued by the concessionaires of health services, by which they assume the obligation to provide services to a future user, stating the terms and conditions for this purpose.
(n) public networks: are those which, being installed in national assets for public use are intended for the respective health service. "."
32 replace the second paragraph of article 55 °, by the following: "lenders should submit annually to the normative entity, on the date that this set, a list of the works put into operation during the year and investment amounts, specifying, in addition, the executed works of conservation, repair and replacement of the assets pertaining to the concession.".
33 Agreganse to article 58, paragraphs following second, third and fourth new: "equally, for well-founded reasons, the lender may request modification of its development program.
The modification of the agenda for development shall be approved by resolution of the regulatory entity, subject to the procedure from outlet of reason.
Updated development plans and annual programs of service provider business investment will be public. "."
34 Agreganse, following article 62 °, the following articles 63, 64 °, 65 °, 66 °, 67 °, 68 °, 69 °, 70 ° and 71 °, new: "article 63.-is defined the following categories companies providers according to relationship percentage between number customers service water drinking and sewage water served served by the company and the total users urban services water drinking and sewer of waters served the country" (, according to official statistics of the Superintendency: to) greater, which has a number of customers equal to or higher than 15% of the total number of users in the country;
b) medium, which has a number of customers and less than 15% or 4% of the total number of users in the country, and c more) minor, which has a number of customers less than 4% of the total number of users in the country.
In each of the preceding categories any person or group of people with joint action agreement, directly or through other natural or legal persons, can participate in ownership or usufruct of actions or exploitation of concession or concessions health of a number of outsourcees exceed 49% of the total number of companies classified in the respective category. If the number of companies in the category is equal to two, the referred percentage will rise to 50%. Designated restriction will not apply if there is only a provider in the category.
In addition, any person or group of persons with agreement of action jointly, directly or by means of other natural or legal persons, can participate in the ownership or usufruct of actions of a number of companies or exploitation of concession or concessions health such that the sum of its urban water and wastewater sewer services customers is greater than 50% of the total number of urban water and wastewater sewer services users of the country.
For the purposes of this article means that a person or group of people with joint action agreement, participates in the ownership or usufruct of actions of a provider, directly or by means of other natural or legal persons have power enough vote to choose more than one director or control more than 10% of the capital entitled to vote in the respective society. In the case of institutional investors referred to in the letter e) item 4 bis of law No 18,045, the previous figure will be equal to the maximum percentage of participation in the designated total of subscribed shares of a corporation in the ninth paragraph of article 45 of Decree-Law No. 3,500 of 1980, for purposes of the investment of pension funds limits.
Article 64.-agreements of fusion between two or more service companies shall submit to the approval of the Superintendent, which shall be to ensure that this agreement will not infringe the provisions of this law.
The Superintendent must resolve founded on the referred agreement within sixty days following the date that your approval, request you understanding approved if there is no statement in the opposite direction within that period. Granted the authorization, or the expired, according to the case, the merger agreement will result in full effect.
Article 65.-persons or groups of persons with agreement of joint action, which are controllers or influence instrumental in business administration concessionaires of public services that are natural electrical distribution or local telephone monopolies, whose number of clients exceeds 50% of the total number of users in one or more of these last services, in the areas under concession of the provider of health services ((, may not participate in these same areas: a) on the ownership or usufruct of actions of a provider of health care services for distribution of drinking water or collecting wastewater, in the terms required in fourth of article 63, paragraph, and b) the exploitation of grant or distribution of drinking water or wastewater collection Health concessions.
It will be Resolutive Commission created by Decree Law No. 211 of 1973, determine whether public service concessionaires companies referred to in the preceding paragraph are regulated natural monopoly or declare that they have ceased to be.
In the first paragraph of this article, shall apply to the distribution services of gas networks, in cases where the Resolutive Commission declare that they constitute a regulated natural monopoly.
The number of customers of each company that provides the services indicated in the preceding subparagraphs, as a percentage of the total number of users in each area under concession from the company that provides health services, will be certified by the respective supreme audit institutions.
The Superintendence of health services may grant a derogation from the provisions of this article to lenders who have less than twenty-five thousand spurts of water, provided that the savings resulting from the joint provision of services will result in lower rates for users.
Article 66.-the right to withdrawal laid down in articles 69 bis of the corporations law, in article 107 of Decree Law No. 3,500, from 1980, and in article 56 of the Decree Law Nº 251 of 1931, will always be applicable to the companies of health services, even though they are not registered in the register of securities carrying the Superintendency of securities and insurance.
Administration of concessionary companies in health services shall be obliged to apply for the classification of risk of its shares, provided that shareholders representing, at least, request 5% of the issued shares of the company.
Article 67.-supplying companies may not acquire goods or hire services for a value of more than 500 units of building with related parties unless such acts have been subject to public bidding. Conditions of contracts entered into by such tender only can be altered for reasons founded with agreement of at least two-thirds of the directory of the concessionaire and timely information to the Superintendent.
Annually, the provider must inform the normative entity over all contracts and transactions associated with the purchase of goods or services with related parties. The Superintendent should compare prices of those contracts and transactions with the prevailing in the market, on the basis of a representative sample, and if detected statistically significant differences, shall inform the Superintendence of securities and insurance for the purposes of the provisions of article 44 of the law 18,046.
Without limiting the foregoing, any acquisition of goods or services for amounts exceeding 5,000 units of development shall be by means of public tender, unless it is informed force majeure situations opportunely to the Superintendency.
Article 68.-will also be privileged information, for the purposes of the provisions of articles 60, 164, 165, 166 and 167 of law No 18,045, one concerning the management or investment of a provider of health care plans, not disclosed to the market, knowledge of which is capable of influencing the price of land and immovable property within or outside their operational territory. The expression "publicly offered securities" or "values" to the above-mentioned standards, make mention of means to these effects relating to land or buildings.
The foregoing shall not apply in cases in which the applicant for a grant of health service or the acquirer of a concession already manifest expressly, on your application / contract of transfer, that the main objective of the exploitation of the respective concession in a locality or delimited geographical area is the development of tourism and real estate projects and in merit of the available records, is granting the concession or authorizing the transfer under these conditions.
Article 69.-the terms used in the 63rd and following article will be interpreted, in that apply, as defined by law No 18,045, stock market.
Article 70.-coordination of service companies, its administrators, directors or employees, as well as any other act or Convention tending to distort or conceal the costs of providing the service information in order to influence the obtaining of higher rates in the tariff-setting process, would be considered contrary to free competition.
Article 71.-to supervise the compliance with the provisions of the preceding articles, the Superintendence of health services available to the Superintendency of securities and insurance history that are necessary, this last entity making use of their powers to gather such information.
In case that a shareholder is contravening the provisions of articles 63 °, 64 ° or 65 ° of this law, the normative entity may require to the Superintendency of securities and insurance, mandating the alienation of the actions that cause the contravention, in terms, conditions and form determined by the regulation, without prejudice to any other sanctions that apply. The right to vote of the referred shares will be suspended as long as the failure persists. For these purposes means that the actions that cause the contravention are which correspond to the most recent transactions.
Despite this, the normative entity may exempt from sanctions and grant a term of up to two years to conform to the provisions referred to those shareholders who contravene these rules by causes that are not attributable to them.
The standards contained in the second and third article 63 paragraphs and in article 65 of this law shall not apply if the limits laid down in those articles are overcome due to growing number of customers of the company or natural growth. Will not be applicable such provisions in the case of natural or vegetative, growth to the situation referred to in the final paragraph of article 6. "."
35 replacements, in the second paragraph of article 2 transitional, the words "the warranty stated" by the expression "the established guarantees".
36 added, after article 5 transitional, this transitional article 6, new: "article 6 Transitional-the formalization of a concession for distribution of drinking water in certain operational territory, shall simultaneously consider the formalization of the granting of collection of sewage in the same territory. If pick-up not is has been paying to June 1989, Decree of formalization will indicate this fact and shall fix the conditions and the period that must be assumed by the provider, in accordance with the respective development. "."