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December 14, 2021Amended

Decree No. 111-2021

Congreso Nacional

  • Decree: 111-2021
  • Published: December 14, 2021
  • Issuing body: Congreso Nacional
  • Gazette: 35,797
  • Category: Financial & Tax

Summary

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This decree creates the Municipal Pre-Investment Fund with 30 million lempiras initially to develop municipal projects, allocates 100 million lempiras annually to the National Coffee Fund to support coffee-growing areas, and incorporates two new associations of coffee intermediaries and exporters into the National Coffee Council to strengthen the country's coffee policy.

Considerations

Whereas it is the duty of the State to promote economic and social development by creating both structural and financial conditions to stimulate the growth of local communities, as well as economic sectors of vital importance, such as the coffee sector.

Whereas the National Coffee Council, also known as CONACAFE, which was created through Decree No. 145-2000 dated October 3, 2000, published on November 21, 2000 in the Official Gazette "La Gaceta", Edition No. 29,333, as the body responsible for formulating the country's coffee policy and advising the President of the Republic on matters related to the coffee industry; is constituted with council members from all sectors of the coffee chain, represented through their civil associations, since together with the government they must reach consensus on the management and regulation of activities related to the Coffee industry with the actors of the coffee chain, in order to strengthen and develop this sector, formulating, approving and evaluating coffee policy in Honduras.

Whereas two (2) new groups of coffee intermediaries and exporters have met, been legally and duly constituted, and have all the legal accreditations that legitimize them to formally and legally integrate into the National Coffee Council, the legal incorporation of these two (2) new civil associations of intermediaries named "Honduran Association of Coffee Traders (AHICAFE)" and of coffee exporters named "Union of Coffee Exporters of Honduras (UNECAFEH)" into the National Coffee Council (CONACAFE) is appropriate, in order to develop, strengthen and invigorate the institutional framework and coffee policy of the country. Likewise, to promote that these organizations contribute through their civil associations, with their experiences, contributions, proposals, technical expertise or advice, to solve problems related to Honduran coffee cultivation. And in the same manner, to improve and further strengthen the importance that this sector represents for the support of Honduras' economy.

Whereas in addition to a representative structure of the actors that make up the different links of the coffee productive chain, it is necessary that economic promotion be developed efficiently, designating for this purpose an appropriate structure.

Whereas all organic and financial actions aimed at the development of the coffee sector must also take into account the need to promote local development and the preservation of the country's natural resources and those of each particular community.

Whereas in accordance with Article 205, Attribution 1) of the Constitution of the Republic, it is within the power of the National Congress: To create, decree, interpret, reform and repeal laws.

Amendments

Articles

Article 1.-

The "MUNICIPAL PRE-INVESTMENT FUND (FEPM)" is hereby established for the formulation of projects and business plans necessary for the development of natural resources in municipalities and the development of competencies that improve their competitiveness and thus be able to attract investors. These activities must be executed by the Foundation for Municipal Development (FUNDEMUN). For the foregoing, the Secretary of State in the Department of Finance (SEFIN) is authorized to make the necessary budgetary modifications as well as reorientation of resources including budgetary structures with transfer beneficiary in Fiscal Year 2021 in order to allocate an amount of up to THIRTY MILLION LEMPIRAS (L.30,000,000.00) to the Secretary of State in the Department of the Presidency which will have the purpose of allocating the resources to the Foundation for Municipal Development (FUNDEMUN). Likewise, for subsequent fiscal years an amount of FIFTEEN MILLION LEMPIRAS (L.15,000,000.00) shall be allocated annually to the Foundation for Municipal Development (FUNDEMUN), which must be included in the budget of the Secretary of State in the Department of Finance (SEFIN).

Article 2.-

The Administrative Managements of institutions of the Public Sector or those responsible to whom such function has been delegated or deconcentrated are authorized to register and accrue the issuance of the payment order in the concept of compensation, charging the Budget of Fiscal Year 2021, in favor of employees or public officials who shall cease their functions in January 2022.

Article 3.-

The Secretary of State in the Department of Finance (SEFIN) is instructed to allocate from Fiscal Year 2022 onward a budgetary allocation of ONE HUNDRED MILLION LEMPIRAS (L.100,000,000.00) annually to the NATIONAL COFFEE FUND, with the purpose of supporting special investment and social development programs and projects for the coffee-growing regions of the country. Such resources must be reflected in the budget of the Secretary of State in the Department of Finance (SEFIN).

Article 4.-

To reform Article 234, contained in Decree No.182-2020, approved on December 22, 2020 and published in the Official Newspaper "La Gaceta", dated December 23, 2020, Edition No.35,468, which shall be read as follows:

Article 234

For the purpose of complying... The available balances of the budgetary allocations of the preceding paragraph must be used no later than the first fifteen (15) days of the following Fiscal Year so as not to hinder the achievement of the objectives and goals established in the respective Program and Annual Operating Plan. Such use of resources may be destined for the financing of economic reactivation programs, job generation, social protection, debt service payments, among other unavoidable and necessary expenses".

Article 5.-

To reform Articles 2 and 7 of the LAW OF THE NATIONAL COFFEE COUNCIL, contained in Decree No.145-2000 dated October 3, 2000, published on November 21, 2000 in the Official Newspaper "La Gaceta" No.29,333, dated November 21, 2000 and its reforms, which shall be read as follows:

Article 2

The NATIONAL COFFEE COUNCIL shall be comprised of: 1) ... 2) ... 3) ... 4) ... 5) ... 6) ... 7) ... 8) ... 9) The President of the Honduran Coffee Marketers Association (AHICAFE). 10) The President of the Association of Coffee Exporters of Honduras (ADECAFEH); 11) The President of the Union of Coffee Exporters of Honduras (UNECAFEH); 12) The President of the Association of Coffee Roasters of Honduras; and, 13) The General Manager of the Honduran Coffee Institute and the Executive Director of the National Coffee Fund, who shall participate with voice and vote".

Article 7

The Council may hold a session with the attendance of seven (7) council members, in any case, decisions shall be approved by a qualified majority of two-thirds (2/3) of its members".

Article 6.-

This Decree shall enter into force from the day of its publication in the Official Newspaper "La Gaceta". Given in the city of Tegucigalpa, municipality of the Central District, in the Session held by the National Congress in Virtual manner, on the tenth day of the month of December of two thousand twenty-one. MARIO ALONSO PÉREZ LÓPEZ PRESIDENT JOSÉ TOMÁS ZAMBRANO MOLINA SECRETARY ROSSEL RENÁN INESTROZA MARTÍNEZ SECRETARY To the Executive Branch Therefore: Let it be executed. Tegucigalpa, M.D.C., December 14, 2021 JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE SECRETARY OF STATE IN THE DEPARTMENT OF FINANCE LUIS FERNANDO MATA ECHEVERRI

Notes

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