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Law No. 350 Of 2 December 2005 On The Regime Of Grants From Public Funds Allocated For Non-Profit Activities Of General Interest

Original Language Title:  LEGE nr. 350 din 2 decembrie 2005 privind regimul finanţărilor nerambursabile din fonduri publice alocate pentru activităţi nonprofit de interes general

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LEGE no. 350 of 2 December 2005 (* updated *) on the regime of grants from public funds allocated for non-profit activities of general interest ((updated on 18 May 2015 *)
ISSUER PARLIAMENT




---------- The Romanian Parliament adopts this law + Chapter I General provisions + Section 1 Purpose + Article 1 This law aims to establish the principles, the general framework and the procedure for the award of non-reimbursable financing contracts from public funds, as well as the remedies of the act or decision of the financing authorities that apply the procedure for awarding non-refundable financing contracts. + Section 2 Definitions + Article 2 Within the meaning of the present law, the following terms and expressions have the following meaning: a) profit-generating activity that produces a direct profit for a natural or legal person; b) financing authority-any public authority, as defined in the Constitution of Romania, republished, including the judicial authority, as well as any public institution of general, regional or local interest; ------------ Lit. b) of art. 2 2 has been amended by section 4.2 1 1 of the single article of EMERGENCY ORDINANCE no. 84 84 of 24 June 2008 , published in MONITORUL OFFICIAL no. 471 471 of 26 June 2008. c) beneficiary-the applicant to whom the grant contract is awarded following the application of the public project selection procedure; d) eligible expenditure-expenditure which may be considered for non-reimbursable financing; e) non-reimbursable financing contract-contract concluded, under the law, between a public authority, hereinafter referred to as the financing authority, and a beneficiary; f) non-reimbursable financing-direct financial allocation from public funds, in order to carry out by individuals or legal entities without patrimonial purpose of non-profit activities to contribute to the realization of actions or public, regional or local public interest programmes; g) public funds-amounts allocated from the state budget, state social insurance budget, health insurance budget, special fund budgets, State Treasury budget, local budgets, budgets of publicly funded institutions from extra-budgetary income, external financial aid granted to Romania or to public institutions and external loans contracted or guaranteed by the State or by local public administration authorities, as well as contracted internal loans by local public administration authorities; h) applicant-any natural or legal person without patrimonial purpose who submits a project proposal. + Section 3 Scope of application + Article 3 (1) In order to be able to participate in the procedure regarding the award of the grant contract, applicants must be natural persons or legal entities without patrimonial purpose-associations or foundations constituted according to the law-or cults religious recognized according to law. ((1 ^ 1) For contracts financed under the General Programme "Solidarity and Management of Migration Flows" for the period 2007-2013, applicants must be legal persons governed by public or private law. ------------ Alin. ((1 ^ 1) of art. 3 3 has been introduced by section 2 2 of the single article of EMERGENCY ORDINANCE no. 84 84 of 24 June 2008 , published in MONITORUL OFFICIAL no. 471 471 of 26 June 2008. (2) The provisions of this Law shall apply for the award of any non-reimbursable financing contract from public funds, except those financed by non-reimbursable external funds. (2 ^ 1) The exception provided in par. ((2) shall not apply to the funds allocated to Romania by the General Programme "Solidarity and Management of Migration Flows" for the period 2007-2013. ------------ Alin. (2 ^ 1) of art. 3 3 has been introduced by section 3 3 of the single article of EMERGENCY ORDINANCE no. 84 84 of 24 June 2008 , published in MONITORUL OFFICIAL no. 471 471 of 26 June 2008. (3) The legal regime established by this law for grants is not applicable to special intervention funds in case of calamity and to support sinister individuals and is without prejudice to the procedures established by special laws. (4) Non-refundable grants shall not be granted for profit-generating activities nor for activities in the fields covered by Law no. 182/2002 on the protection of classified information, as amended. (5) According to the provisions of this law, grants are not granted for activities involving the development of the applicant's infrastructure, unless it is an indispensable component of the project. + Section 4 Principles for the award of non-reimbursable financing contracts + Article 4 The principles underlying the award of non-refundable financing contracts are: a) free competition, namely ensuring the conditions for the natural or legal person carrying out non-profit activities to have the right to become, under the law, beneficiary; b) the effectiveness of the use of public funds, namely the use of the competitive system and the criteria to make it possible to evaluate proposals and technical and financial specifications for the award of the grant contract; c) transparency, i.e. making available to all interested parties the information on the application of the procedure for awarding the grant contract; d) equal treatment, namely the non-discriminatory application of the selection criteria and criteria for the award of the grant contract, so that any natural or legal person carrying out non-profit activities have an equal opportunity to be awarded that contract; e) the exclusion of cumulation, in the sense that the same activity aiming at the realization of a general, regional or local interest cannot benefit from the award of several non-reimbursable financing contracts from the same financing authority; f) non-activity, namely the exclusion of the possibility for the destination of non-reimbursable funds to an activity whose execution has already been started or completed at the date of conclusion of the financing contract, except for the financial beneficiary for the continuation of the program, within the limit of the co-financing ceiling provided for in g); ---------- Lit. f) of art. 4 4 has been amended by section 4.2 1 1 of art. I of LAW no. 111 111 of 14 May 2015 , published in MONITORUL OFFICIAL no. 335 335 of 15 May 2015. g) co-financing, in the sense that grants must be accompanied by a contribution from the beneficiary of at least 10% of the total amount of funding; for the funds allocated to Romania through the General Program " Solidarity and management the migration flows ' for the period 2007-2013, the contribution from the beneficiary shall be at least 5% of the total amount of the funding. ------------ Lit. g) art. 4 4 has been amended by section 4.2 4 4 of the single article of EMERGENCY ORDINANCE no. 84 84 of 24 June 2008 , published in MONITORUL OFFICIAL no. 471 471 of 26 June 2008. + Chapter II Procedures for the award of non-reimbursable financing contracts + Section 1 General provisions and rules + Article 5 The award of non-refundable financing contracts is made exclusively on the basis of public selection of projects, the procedure that allows the award of a non-reimbursable financing contract from public funds, by selecting it by a commission, with compliance with the principles laid down in 4. + Article 6 The project selection procedure shall include the following steps: a) publication of the annual programme for granting grants; b) publication of the contract notice; c) registration of candidates; d) transmission of documentation; e) presentation of project proposals; f) verification of eligibility, registration and fulfilment of criteria relating to technical and financial capacity; g) evaluation of project proposals; h) communication of results; i) conclusion of the contract or grant contracts; j) publication of the contract award notice or non-refundable financing contracts. + Article 7 The projects will include information about the purpose, specific objectives, activities, associated costs and tracked results, evaluable on the basis of precise indicators, the choice of which is justified. + Article 8 The evaluation in the competitive system of the projects will be done in accordance with the general evaluation criteria provided for in this Law, as well as with the specific evaluation criteria that will be developed by each funding authority. + Article 9 Any natural person or legal person without patrimonial purpose who carries out non-profit activities aimed at supporting the achievement of objectives of general public interest, regional or local has the right to participate, under the conditions of this law, to the procedure for the award of the grant contract. + Article 10 The award of non-reimbursable financing contracts will be made within the public funds allocated to the programs approved annually in the budgets of the financing authorities + Article 11 Procedures for the planning and execution of the ceilings of funds for non-reimbursable financing, procedures for the award of non-reimbursable financing contracts, non-reimbursable financing contracts concluded by the financing authority with beneficiaries, as well as budget implementation reports on non-reimbursable financing, constitute information of public interest, according to the provisions Law no. 544/2001 on free access to information of public interest. + Article 12 (1) For the same non-profit activity a beneficiary may contract only one grant from the same financing authority during a fiscal year. ((2) Where a beneficiary contracts, during the same calendar year, more than one grant from the same financing authority, the level of funding may not exceed one third of the total public funds allocated programmes approved annually in the budget of the respective funding authority. (3) In order to participate in a selection procedure, applicants are obliged to submit to the financing authority a declaration on their own responsibility to prove compliance with the provisions of par. ((1) and (2). + Article 13 Eligible expenses will be payable under a non-refundable financing contract only to the extent that they are justified and timely and have been contracted in the budget year in which the contract is held. ---------- Article 13 has been amended by section 1. 2 2 of art. I of LAW no. 111 111 of 14 May 2015 , published in MONITORUL OFFICIAL no. 335 335 of 15 May 2015. + Article 14 (. The number of participants in the draft selection procedure shall not be limited. (. The financing authority shall repeat the selection procedure for projects where there is only one participant. (3) If following the repetition of the procedure only one participant submitted the project proposal, the financing authority has the right to award the grant contract to him, under the law. + Section 2 Transparency and publicity + Article 15 (1) The financing authorities shall establish an annual program for granting grants, under the conditions of this Law, which shall be published in the Official Gazette of Romania, Part VI, no later than 30 days after the approval of the budget of the financing authority. (. The annual programme may include one or more project selection sessions. (3) The publication in the Official Gazette of Romania, Part VI, of the annual program for granting grants does not create the obligation to carry out the selection procedure. + Article 16 (1) The financing authority has the obligation to make publicly known the intention to award financing contracts. The contract notice shall be published in the Official Gazette of Romania, Part VI, in a central daily and on the website of the financing authority of general or regional interest, respectively in at least two local daily newspapers and on the website of the authority Local funding. (2) In order to ensure maximum transparency, the financing authority shall make known the contract notice and other local, national or international media, as the case may be. The contract notice must mention the number and date of the appearance of the Official Monitor of Romania, Part VI, in accordance with the provisions of par. (1), and shall include only the information published in the Official Gazette of Romania, Part VI. + Article 17 The financing authority of general or regional interest has the obligation to submit for publication in the Official Gazette of Romania, Part VI, an announcement for the award of the non-reimbursable financing contract, no later than 30 days from the date contract conclusion. + Article 18 (1) At the end of the budgetary year, the financing authority shall draw up a report on the non-reimbursable financing contracts concluded during the fiscal year, which shall include the funded programs, the beneficiaries and the results contract. (2) The report will be published in the Official Gazette of Romania, Part VI, as well as on the own website of the financing authority of general or regional interest. + Article 19 (1) The Autonomous Regia "Monitorul Oficial" has the obligation to publish in the Official Gazette of Romania, Part VI, the notices and the report provided in art. 15 15 -18, no later than 12 days from the date of their registration. (2) If, for reasons of urgency, the financing authority accelerates the application of the public selection procedure of projects according to the provisions of art. 20 20 para. (2), the Autonomous Regia "Monitorul Oficial" has the obligation to publish the contract notice no later than 5 days from the date of its registration. + Section 3 Deadline for submission of project proposals + Article 20 (. The financing authority shall be required to establish and include in the contract notice the closing date for the submission of proposals. It shall not be earlier than 30 days from the date of publication of the contract notice. (2) If, for reasons of urgency, compliance with the deadline provided in par. (1) would cause damage to the financing authority, it has the right to speed up the application of the selection of projects by reducing the number of days, but not less than 15 days. (3) In the case provided in par. (2), the financing authority has the obligation to include in the contract notice the reasons for the reduction of the deadline provided in par. ((1). (4) The financing authority shall have the right to extend the term of submission of project proposals, provided that the new deadline for submission of project proposals is communicated in writing, at least 6 days before the expiry of the original deadline, to all applicants who received, under the present law, a copy of the documentation for the elaboration and presentation of the project. + Section 4 Eligibility, registration, technical capacity and financial capacity + Article 21 (1) It is excluded from a procedure for the award of the grant contract, respectively the applicant who is in any of the following situations is not eligible: a) failed to meet its obligations to pay taxes and fees to the state, as well as the contribution for state social insurance; b) provide false information in the submitted documents; c) has committed a serious mistake in professional matters or has not fulfilled its obligations under another non-refundable financing contract, in so far as the financing authority can provide proof of evidence in this regard; d) is subject to a dissolution or liquidation procedure or is already in a state of dissolution or liquidation, in accordance with the legal provisions in force; e) does not present the declaration referred to in 12 12 para. ((3). (2) The financing authority has the right to ask applicants for the submission of documents proving eligibility within the meaning of the provisions of par. (1), as well as edifying documents proving a form of registration as a legal person or registration/attestation or professional membership, in accordance with the legal provisions in Romania. (3) In the case of applicants for individuals having foreign citizenship or non-patrimonial foreign legal persons, the financing authority shall have the obligation to take into account the documents considered as sufficient to prove eligibility in the country where the applicant is resident. ((4) The provisions on technical and economic-financial capacity, provided for in art. 32 and 33 of Government Emergency Ordinance no. 60/2001 on public procurement *), published in the Official Gazette of Romania, Part I, no. 241 of 11 May 2001, approved with amendments and completions by Law no. 212/2002 , as amended and supplemented, shall apply accordingly. + Section 5-a Documentation for the design and presentation of the draft + Article 22 (1) The financing authority shall have the obligation to ensure the preparation of the documentation for the elaboration and presentation of the project proposal, which shall include at least: a) general information on the financing authority; b) the minimum qualification requirements requested by the financing authority and the documents to be submitted by the applicant for the fulfilment of those requirements; c) the terms of reference; d) instructions on the deadlines to be complied with and the formalities to be completed; e) instructions on how to develop and present the technical and financial proposal; f) information on the criteria applied for the award of the grant contract. (2) The terms of reference contain characteristics of the project relating to the purpose, specific objectives, activities to be carried out, the criteria for the evaluation of the results. + Article 23 (1) Any natural person or legal person without patrimonial purpose who obtained, under the conditions of this law, a copy of the documentation for the elaboration and presentation of the project proposal has the right to request and receive clarifications from the funding authority's share. (2) The financing authority has the obligation to transmit response to any request for clarifications, but only to those requests received at least 6 days before the deadline for submission of project proposals. (3) The financing authority has the obligation to submit the response to requests for clarifications at least 4 days before the deadline for submission of project proposals. (4) The financing authority has the right to complete on its own initiative, in order to clarify, the documentation for the elaboration and presentation of the offer and is obliged to communicate in writing to all applicants any such completion. The transmission of communication must comply with the time frame provided for in paragraph ((3). + Section 6 Development, presentation and evaluation of the project proposal + Article 24 (1) The applicant has the obligation to draft the project proposal, in accordance with the provisions of the documentation for the elaboration and presentation of the project. (. The technical proposal shall be drawn up in accordance with the requirements contained in the terms of reference, in such a way as to ensure that all the information necessary for the technical assessment (. The financial proposal shall be drawn up in such a way as to ensure that all necessary information is provided for financial evaluation. + Article 25 (1) The project proposal has a firm and binding character in terms of content and must be signed, on its own responsibility, by the applicant or by a person legally empowered by it. The budget remains firm for the duration of the non-refundable financing contract. (2) The applicant has the obligation to express the price in lei from the financial proposal. + Article 26 The submission, modification or withdrawal of the draft proposal is made with the proper application of the provisions of 42 42, 43, 45 and art. 48-50 of Government Emergency Ordinance no. 60/2001 , approved with amendments and additions by Law no. 212/2002 , with subsequent amendments and completions. + Article 27 The financing authority has the obligation to constitute, for the award of each non-reimbursable financing contract, an evaluation commission, under the conditions of art. 51 51 para. ((1) and (2), art. 53 and 54 of Government Emergency Ordinance no. 60/2001 , approved with amendments and additions by Law no. 212/2002 , with subsequent amendments and completions. + Article 28 The evaluation of project proposals is done with the proper application of the provisions Head. VI section 4 of Government Emergency Ordinance no. 60/2001 , approved with amendments and additions by Law no. 212/2002 , with subsequent amendments and completions. + Section 7 Criteria for awarding the grant contract + Article 29 (1) The selection criteria for the award of non-refundable financing contracts must make it possible to assess, on a competitive and competitive basis, the ability of applicants to complete the proposed activity for financing. (2) The criteria for the award of the non-reimbursable financing contract must make it possible to assess the quality of the proposals and the technical and financial specifications, to be published in the contract notice. + Article 30 The financing authority is required to specify in the contract notice and in the documentation for the elaboration and presentation of the draft proposal the criteria on the basis of which the contract is awarded and which, once established, cannot be exchanged for the whole the duration of the award of the grant award procedure. + Article 31 (1) The project or projects established as winning are those that meet the highest score, resulting from the application of a calculation algorithm, being the most technically advantageous. (2) The calculation algorithm provided in par. (1) is established by taking into account, together with the budget, various criteria for the evaluation of the proposal, depending on the specificity of each non-reimbursable financing contract. These criteria must be clearly defined by each financing authority, by drawing up specific rules that have a concrete connection with the specificity of the contract and which, after they have been established, cannot be changed for the duration of the contract. implementing the procedure for the award of the grant contract. (3) The financing authority shall be obliged to specify in the documentation for the elaboration and presentation of the offer the criteria for the evaluation of the draft proposal provided in (2), in order of their importance for the evaluation of the proposal, as well as the detailed calculation algorithm to be applied. + Section 8 Forms of communication + Article 32 (1) Any communication, request, information, notification and the like provided for in this Law must be transmitted in the form of a written document. ((. Any written document must be recorded at the time of transmission and receipt. ((3) Any written document must be confirmed by the receipt, except for the documents confirming the receipt. (. Written documents may be submitted by one of the following forms: a) letter by post; b) Telegram; c) telex; d) telefax; e) electronics. + Article 33 (1) The financing authority or, as the case may be, the applicant who transmitted the documents by one of the forms provided in art. 32 32 para. ((4) lit. b)-d) has the obligation to transmit the respective documents in no more than 24 hours and in the form of letter by post. (2) If the written documents are transmitted in electronic form, they are applicable to the legal provisions regarding the electronic signature, so as to meet the trial and validity conditions of a legal act. + Article 34 The financing authority shall be obliged not to discriminate between applicants from the point of view of the form in which they transmit or receive documents, decisions or other communications. + Section 9 Cancellation of the application of the procedure for awarding the grant contract + Article 35 The financing authority shall have the right to cancel the application of the procedure for awarding the grant contract under the conditions laid down in Head. VI section 7 of Government Emergency Ordinance no. 60/2001 , approved with amendments and additions by Law no. 212/2002 , with subsequent amendments and completions. + Chapter III Conclusion, fulfilment and completion of the grant agreement + Article 36 (1) The conclusion and fulfilment of the grant contract shall be made in compliance with the provisions art. 71 and 74 of Government Emergency Ordinance no. 60/2001 , approved with amendments and additions by Law no. 212/2002 , with subsequent amendments and completions. (. At the conclusion of the grant agreement, the beneficiary shall be obliged to sign a declaration of impartiality the content of which is set out in the Annex. + Article 37 (1) The financing authority and the beneficiary may establish in the non-reimbursable financing contract that the payments to the beneficiary shall be made in instalments, in advance, in relation to the execution phase of the project and the related expenses, depending on the evaluation possible financial risks, the duration and time course of the activity financed or the internal costs of organization and operation of the beneficiary. ------------ Alin. ((1) of art. 37 37 has been amended by section 5 5 of the single article of EMERGENCY ORDINANCE no. 84 84 of 24 June 2008 , published in MONITORUL OFFICIAL no. 471 471 of 26 June 2008. (2) The financing authority shall not issue to the beneficiary the last tranche of non-reimbursable financing before the validation of the final activity report and the financial report, which the beneficiary is obliged to submit to the seat of the authority financing no later than 30 days after the end of the activity. (3) The validation will be made no later than 30 days after the submission by the beneficiary of the final activity report and the financial report. (4) The financing authority reserves the right to make checks both during the period of the non-reimbursable financing contract and after the validation of the two reports, in order to complete the non-reimbursable financing file, but no longer months after the expiry of the term provided in par. ((3). (5) Provisions art. 75, 76, art. 77 77 para. ((1), art. 78 and 79 of Government Emergency Ordinance no. 60/2001 , approved with amendments and additions by Law no. 212/2002 , with subsequent amendments and completions, shall also apply accordingly to non-reimbursable financing contracts from public funds. + Article 38 (1) When, for the fulfilment of contractual obligations, the beneficiary acquires, from non-reimbursable public funds, products, works or services, the procurement procedure is the one provided by Government Emergency Ordinance no. 60/2001 , approved with amendments and additions by Law no. 212/2002 , with subsequent amendments and completions. (2) Non-reimbursable financing contracts will provide, under penalty of nullity, the quality of the Court of Auditors to exercise financial control over the conduct of non-profit activity financed by public funds. + Chapter IV Remedies and remedies + Article 39 The acts or decisions that determine or are the result of violation of the provisions of this law may be appealed under the provisions of 80-83 80-83, art. 85 85-91 and ale art. 93-96 of Government Emergency Ordinance no. 60/2001 , approved with amendments and additions by Law no. 212/2002 , with subsequent amendments and completions. + Chapter V Contraventions and penalties + Article 40 Provisions art. 98-101 of Government Emergency Ordinance no. 60/2001 , approved with amendments and additions by Law no. 212/2002 , with subsequent amendments and completions, shall also be applied accordingly in the case of non-reimbursable financing contracts from public funds. + Chapter VI Transitional and final provisions + Article 41 The provisions of this Law shall be duly completed with the provisions Government Emergency Ordinance no. 60/2001 , approved with amendments and additions by Law no. 212/2002 , with subsequent amendments and completions. + Article 42 This law shall enter into force 30 days from the date of publication in the Official Gazette of Romania, Part I. This law was adopted by the Romanian Parliament, in compliance with the provisions of art. 75 75 and art. 76 76 para. (2) of the Romanian Constitution, republished. p. CHAMBER OF DEPUTIES PRESIDENT, LUCIAN AUGUSTIN BOLCAS SENATE PRESIDENT NICOLAE VACAROIU Bucharest, December 2, 2005. No. 350. + Annex DECLARATION OF IMPARTIALITY Represents conflict of interest any situation that prevents the beneficiary at any time from acting in accordance with the objectives of the financing authority, as well as the situation in which the objective and impartial execution of the functions of any people involved in the implementation of the project can be compromised for family, political, economic or any other common interests with another person. The undersigned, as a natural person or as a person with the right of representation of the requesting organization regarding the implementation of the project, I am obliged to take all necessary preventive measures to avoid any conflict of interest, as it is it defined above, and I am also obliging to inform the financing authority of any situation that generates or could generate such a conflict. Name and surname: Function: Signature and stamp: ____________ -------