Special Law on Economic Acceleration and Social Protection in Response to the Effects of COVID-19

In the implementation of this Law, both in its special mechanisms for contracting public works, as well as the acquisition of goods and services to authorized institutions, shall act as observers to guarantee transparency and accountability: the Infrastructure Transparency Initiative (COST), the National Forum for Convergence (FONAC), and the Honduran Council of Private Enterprise (COHEP).

To achieve the financial sufficiency and sustainability of the Fund for Solidarity Promotion and Reciprocal Aid of PLAN-PROSOLIDAR, related to the contribution established in subsection 3) of Article 44 of the Framework Law of the Social Protection System, which must be devoted exclusively to the payment of operating and administrative expenses of the Integral Public Network of Health Services of the Honduran Social Security Institute (IHSS), the allocation of budget resources must be entered by the State Department in the Ministry of Finance within the General Budget of the Republic approved annually by the National Congress, considering the following incremental table of gradual and progressive adjustment: YEAR / RANGE OF BUDGET ALLOCATION 2020 / Between 51,000 to 77,000 minimum salaries 2021 / Between 64,000 to 80,000 minimum salaries 2022 / Between 80,000 to 100,000 minimum salaries 2023 / Between 100,000 to 125,000 minimum salaries 2024 / Between 125,000 to 150,000 minimum salaries. For the proper determination of the values established above, the calculation of current monthly minimum salaries must be based on the minimum salary used to define the contribution ceiling to the Honduran Social Security Institute (IHSS). The resulting values must be entered in the General Budget of the Republic of each year, making use of the resources generated by three percent (3%), incorporated into the Fund for Solidarity and Social Protection for the reduction of extreme poverty referred to in Decree No. 290-2013 dated January 8, 2014 and published in the Official Gazette "La Gaceta" on April 5, 2014, Edition No. 33,398, or the norms that reform it, or failing that, from any other source of financing of the General Budget of the Republic. Without prejudice to complying with the obligation to pay historical debt as established in Article 51 of the Framework Law of the Social Protection System, the resources that the Government contributes to the Fund for Solidarity Promotion and Reciprocal Aid of PLAN-PROSOLIDAR, through the State Department in the Ministry of Finance, must be considered as part of the obligation derived from Article 143 of the Constitution of the Republic and Article 55-A of the Social Security Law.

The financing provision referred to in the preceding Article, as well as what is provided in the second paragraph of Article 39 of the Framework Law of the Social Protection System has superior rank and shall be applied preferentially to the General Provisions of the Budget of Income and Expenditures of the Republic that are approved annually; therefore, any budgetary norm or provision that restricts the achievement of the essential objective of timely and proper payment of benefits and services derived from social security is not applicable. The manner of application and execution of the resources incorporated into the FUND FOR SOLIDARITY PROMOTION AND RECIPROCAL AID, within the framework of the preceding article, must be defined through a Special Regulation approved by the highest government authority of the Honduran Social Security Institute (IHSS).

For the investments made as a result of the application of Article 19 of the Framework Law of the Social Protection System and of this Decree, the Settlors referred to in the cited article are authorized to contribute as guarantee securities, securities and other assets to the trust that promote the financial viability of the operation. The State Department in the Ministry of Health, the Honduran Social Security Institute (IHSS), and other Public or public-private entities may enter into agreements with the Strategic Investment Unit of Honduras (Invest-Honduras), the United Nations Procurement and Contracting Agency (UNOPS), or other national or international organizations of similar purpose and nature for the purchase and direct contracting of public works, acquisition of supplies and services. Strategic Investment of Honduras (Invest-Honduras) is authorized to directly contract the works, goods and services necessary to accelerate investment in the official road network for the purpose of counteracting the negative economic effects of the pandemic. For purposes of this Law, the referred entities may use special and expedited mechanisms for the direct contracting of works, goods and services, making use of rules, manuals, processes and internally approved regulations necessary for the fulfillment of their mandate; being able to hire directly the necessary personnel in the different programs, such as Green Code Plus. The State Department in the Ministry of Health is authorized to, as a matter of urgency and making use of the budgetary provision established in Article 276 of the General Budget of the Republic of the Fiscal Year two thousand twenty (2020), proceed to make use of the necessary resources in order to complete the studies and begin the construction of the Oncology Institute, within the framework of the contracting options established in this Decree, whose construction will be carried out as part of the Integral Public Network of Health Services.

The following institutions of the Executive Branch are authorized: State Departments in the Offices of: Health, Education and Social Development and Inclusion; Institute of Property (IP), Honduran Bank for Production and Housing (BANHPROVI) and other public institutions that require it for the purposes of this Special Law, to directly contract the acquisition of financial resource planning systems that may, according to institutional priority, include the following components:

• A)

  Financial administrative management that includes general accounting, fixed asset control, accounts receivable, accounts payable and treasury; budget control management that includes cost center accounting and budget management module.

• B)

  Logistics control management that includes the purchase and acquisition of goods, inventory control and management, and the maintenance of assets and vehicle fleet.

• C)

  Controls over expenses, personnel and the recruitment and retention of qualified human resources to gradually increase the professionalization of civil servants in the selected institutions;

• D)

  Measure the behavior of critical variables in human resource processes such as staff turnover, work absenteeism, hiring time, unfilled vacancies, late arrivals, leaves, fictitious and duplicate employees;

• E)

  Automation of sensitive processes to ensure quality, traceability and improvement in service; and,

• F)

  Acquire the supply of technical infrastructure for the installation of said solution, specialized consulting services for each of the management modules and obtaining the respective licensing. The Systems and Mechanisms derived from the referred processes must be compatible at the interface level with the Integrated Financial Administration System (SIAFI). Likewise, the State Department in the Ministry of Finance (SEFIN) and the Technical Committee of the Trust of the Fund for Investments and Telecommunications and Information Technologies (ICT's) are authorized to transfer and incorporate the resources that are necessary in the budget items that the State Department in the Ministry of Finance (SEFIN) instructs for the execution of the project in order to comply with what is indicated in the preceding paragraph. All of the foregoing is for the purpose of making public spending more efficient in these institutions and guaranteeing better provision of public services to the population. The services to be contracted must guarantee transparency, accountability and permanent disclosure of public spending, so that the citizenry in general fully knows how public spending authorized in this Special Law is being executed.

Considering that within the framework of the Coronavirus crisis the implications will be sanitary but also of contraction of economic activity in different strategic sectors of the country, considering that the Honduran Bank for Production and Housing (BANHPROVI) within its powers is to support national development through the financing of strategic sectors through its first and second floor banking. For this reason it is important that to guarantee the reactivation of strategic sectors the Honduran Bank for Production and Housing (BANHPROVI) through this Emergency Decree be empowered to make flexible its financial products and services in order to guarantee financial inclusion, the generation of employment, the promotion of economic growth, contribute to mitigate the effects that cause inflation and others. Therefore the Decree empowers the Honduran Bank for Production and Housing (BANHPROVI) to take the necessary measures that guarantee financing through financial products and services and other strategies that result in facilitating access to productive sectors. The Central Bank of Honduras (BCH) and the Honduran Bank for Production and Housing (BANHPROVI) are authorized, in their capacity as Settlor and Trustee respectively, to, with the resources defined in Article 2 of the Law of Financial Support for the Productive Sectors of Honduras, contained in Decree No. 175-2008 dated December 18, 2008; amended by Decree No. 67-2009 dated May 12, 2009; Decree No. 57-2013 dated April 16, 2013; Decree No. 95-2014 dated October 16, 2014; Decree No. 90-2016 dated October 19, 2016; and Decree No. 145-2018 dated November 28, 2018, be able to make expenses and investments that promote risk management and/or the refinancing and re-education of debts, to natural or legal persons indebted to the financial system belonging to productive sectors, such as MIPYME, Agricultural, Forestry and other priority sectors in the generation of employment and foreign exchange for the country; as well as the contracting of electronic wallets or other electronic mechanisms that allow access to credit to Micro and Small enterprises in an expedited and safe manner in all productive sectors of the country through information and communication technologies.

The National Service for Entrepreneurship and Small Business (SEMPRE) must establish a catalog and regulation of products and/or services that are required by the Government and Municipalities to be contracted directly from natural persons, MIPYMES and social economy sector. The regulation must contain processes that will be excepted depending on the nature of the product or service of the entrepreneur, MIPYME or Social Sector Enterprise. The contracts that the Government or Municipalities enter into with the referred natural or legal persons may be considered as guarantees by the Financial System or other financing entities of the Social Economy Sector.

Employees of any public or private entity may perform their duties totally or partially at a distance from their work location using information and communication technologies. When there is a written contract, the telework contract in addition to containing what is indicated in Article 37 of the Labor Code shall have the rules of property, use and care of equipment, the manner in which the costs of interconnection will be paid. The ownership of the data or information transmitted and the processes to guarantee the storage thereof. Employees subject to this regime are not required to have a work schedule, but must work the number of hours or develop the activity that they negotiate with their employer respecting the maximum number of hours indicated in labor legislation. Workers subject to this regime enjoy all benefits and protections granted to workers in similar activities.

Reform Article 7 of Decree No. 29-2020 dated March 12, 2020, published in the Official Gazette "La Gaceta", in Edition No. 35,198 dated March 12, 2020, which shall read as follows: "Companies covered by the different special regimes are authorized to donate or sell one hundred percent (100%) of their production within national territory to institutions of the public sector, supplies and medical equipment for the treatment of the current pandemic, provided they are necessary to address the health emergency within the framework of this Decree. Likewise, increase medical equipment which must be done in an expedited manner".

The Executive Branch must submit to the Plenary of the National Congress a semi-annual report on the use of the designated funds during the validity of the projects.

The National Commission of Banks and Insurance (CNBS) is ordered to evaluate the credit condition of natural and legal persons in order to reconsider their regulations and norms within the framework of the present crisis.

This Decree enters into effect as of the day of its publication in the Official Gazette "La Gaceta". Given in the city of Tegucigalpa, municipality of the Central District, in the Session Hall of the National Congress, on the thirteenth day of the month of March of two thousand twenty.