The Riigikogu passed two Acts
The Riigikogu adopted an Act simplifying the public procurement procedure and an Act reducing the reporting obligations of alcohol producers.
Two Acts were passed
The Act on Amendments to the Public Procurement Act and Other Acts (788 SE), initiated by the Government, was passed. Its aim is to make public procurement procedures simpler and faster and to reduce administrative burden. For this purpose, the rules for procurements falling below the international threshold are significantly simplified, and the current three-tier threshold system is abolished, leaving only the simple procurement and the international threshold. At the same time, the values for simple procurement thresholds are raised to align them to the changed economic situation.
According to the Act, the abolition of the public procurement threshold and the expansion of the simple procedure will simplify almost half of public procurements and increase the proportion of small purchases with a simpler procedure, while large-scale and higher-risk contracts will still remain under stricter control. In addition, a new simplified procedure is established for the network sector.
Other amendments are also made to reduce bureaucracy. For example, the contracting authority is given the option to verify the conformity of only the most economically advantageous tender or to choose which optional grounds for exclusion to apply in a specific procurement. In order to organize public procurements in the field of national defence more quickly, an additional basis for using a negotiated procedure without prior publication is established.
The amendments made during the proceedings exempt activities related to the production of renewable energy and its sale to the grid in Estonia from public procurement rules. In addition, an application for a public procurement exemption may also be submitted to the European Commission by a contracting entity as a market participant operating in the sector which currently does not have such a right.
61 members of the Riigikogu supported the passing of the Act in the final vote.
The Act on Amendments to the Alcohol Act, the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act and the Statutory Fees Act (881 SE), initiated by the Government, was passed. It provides that the operation of the state register of alcohol will terminate on 1 November. The purpose of the amendment is to reduce the administrative burden on economic operators and simplify bringing alcoholic beverages to the market.
In the future, producers and importers of alcoholic beverages will no longer have to enter their products in the state register of alcohol; instead, they will be able to bring them to the market directly, provided that the products meet the requirements and are safe. Several additional reporting requirements are also eliminated, such as the obligation to submit laboratory test reports and wine movement reports.
An amendment also reduces the administrative burden of the state because the Agriculture and Food Board will no longer need to maintain the register and will be able to direct the freed-up resources to supervision.
53 members of the Riigikogu supported the passing of the Act in the final vote.
A Bill passed the second reading
The Bill on Amendments to the Penal Code and the Victim Support Act (amendments related to the transposition of the revised version of the Directive on Trafficking in Human Beings) (880 SE), initiated by the Government, passed its second reading. It is intended to enhance the prevention of trafficking in human beings and the protection of victims and to bring Estonian law into line with the European Union’s Directive on Trafficking in Human Beings.
Among other things, the directive specifies the liability of legal persons, improves data collection, and strengthens cooperation and coordination at both the national and EU levels. Systems are also being developed that help to identify victims of trafficking in human beings at an early stage and provide them with the necessary assistance.
The bill will include surrogacy against a woman’s will and illegal adoption to the necessary elements of trafficking in human beings in the Penal Code. Also, the use of a service will become punishable by up to five years’ imprisonment if the user knows that the person providing the service is a victim of trafficking in human beings. In this regard, the standard duty of care will apply.
The Estonian Conservative People’s Party Parliamentary Group had submitted two motions to amend the Bill and requested that they be put to a vote. Neither motion to amend was supported and the second reading of the Bill was concluded.
Three Bills passed the first reading
The Bill on Amendments to the Funded Pensions Act and the Taxation Act (935 SE), initiated by the Government, passed the first reading. It is intended to strengthen the second pension pillar and more clearly restore the principle that funds are accumulated there for retirement. The main amendment is that people who have left the second pillar will be able to rejoin it after just five years, instead of the previous 10 years.
For example, those who left the pension fund in 2021 or 2022 would be able to submit an application to resume contributions once the bill takes effect. Another important amendment concerns early withdrawal of funds. In the future, a person will no longer have to withdraw the entire accumulated amount when taking money out of the second pension pillar before retirement age; instead, they will be able to use only part of the money if necessary.
At the same time, the rule will be changed so that if a person has already used the option to withdraw second-pillar pension funds before retirement age and later re-joins, they will then continue to accumulate money until retirement. Rejoining the second pillar will remain voluntary, and the conditions for retiring will not change: it will be possible to retire from the second pillar five years before the retirement age or in the event of no work ability.
The Act is scheduled to enter into force on 1 November 2026. Partial withdrawal of funds and resuming accumulation without restrictions after suspension of contributions would enter into force on 1 January 2028, as they require IT developments in the pension register. In the short term, the bill will mean additional costs for the state budget; the impact is projected to be about 22 million euros by 2027.
The Bill on Amendments to the Law of Obligations Act, the Credit Institutions Act and the Payment Institutions and E-money Institutions Act (prevention and deterrence of financial fraud) (936 SE), initiated by the Government, passed the first reading. Its purpose is to improve the prevention, detection, and deterrence of financial fraud.
People in Estonia lost nearly 29 million euro to fraudsters last year. Most fraud begins through telecommunications channels and ends with a bank payment, which is why effective fraud prevention requires cooperation between the state and the private sector. The bill will improve the protection of bank customers in situations where there is suspicion of fraud when making a payment. Namely, the bill will give banks the right to temporarily suspend payments or refuse to execute a payment in the event of a justified suspicion of fraud; currently, banks do not have a clear legal basis for this.
The bill will also grant banks and payment institutions the right to exchange information related to suspected fraud with other credit institutions, payment institutions and e-money institutions, the Police and Border Guard Board, and CERT-EE, the Computer Emergency Response Team of the State Information System Authority. The proposed amendments will allow payment service providers to intervene more quickly in the event of suspected fraud and to cooperate with each other, as well as with the Police and Border Guard Board and the Information System Authority, thereby helping to reduce the damage caused by fraud and increase the security of the financial system.
The aim is to make it possible to use these measures to a certain extent even before the new EU Payment Services Regulation enters into force, which will likely begin to apply at the end of 2028.
Andre Hanimägi, Maria Jufereva-Skuratovski and Peeter Ernits took the floor during the debate.
The Bill on Amendments to the Notary Fees Act and Other Acts (941 SE), initiated by Members of the Riigikogu Madis Timpson, Mart Helme, Toomas Uibo, Madis Kallas, Peeter Ernits and Lea Danilson-Järg, passed the first reading. It will update notary fees, which have not been changed for years, and abolish the fee for the remote authentication of notarial acts. The bill will streamline the notary fee system as a whole. The biggest amendment concerns fees for acts related to companies and fees related to real estate transactions. Because fee rates have not been updated for years, many notaries are already finding it difficult to cover the costs associated with providing services and running an office. This primarily concerns regions where the value of real estate transactions is lower. If operating a notary office is not economically sustainable enough, it also becomes difficult to find new notaries to replace those who leave the profession.
Replying to three interpellations was deferred
Replying to three interpellations had been deferred to today’s sitting due to the end of the working hours of Monday’s sitting. Minister of Infrastructure Kuldar Leis and Minister of Justice and Digital Affairs Liisa-Ly Pakosta who were scheduled to reply to interpellations (No. 993, No. 1005 and No. 1006) were unable to attend today’s sitting and therefore their replies were postponed again.
Verbatim record of the sitting (in Estonian)
The video recording of the sitting will be available to watch later on the Riigikogu YouTube channel.
Riigikogu Press Service
Maris Meiessaar
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