The Bill titled “Law of Basis and Starting Points for the Freedom of Argentines” will be discussed within the extraordinary legislative sessions

On December 27, 2023, the National Executive Power (hereinafter, the “PEN”) submitted the “Law of Bases and Starting Points for the Freedom of Argentines” (the “Bill”) to the Chamber of Deputies of the Congress.

The Bill is a comprehensive draft law featuring 664 sections contained in 183 pages, together with six Annexes (that in turn contain other bills) for a total of 351 pages. The Bill is set to be discussed within the extraordinary legislative sessions convened for the period from 26 December to 31 January.

The Bill sets forth the declaration of public emergency in economic, financial, fiscal, social security, national defense, tariff, energy, health, social and public administration matters until December 31, 2025. Said term can be extended by the PEN for a maximum of two years. Furthemore, the Bill establishes that the faculties contained in it can be delegated to the PEN.

The Bill addresses a broad number of matters, including communications, technology and culture, elections, tax, privatizations, foreign trade, health, labor, State reorganization and administrative procedures, energy, domestic security, agribusiness transactions, real estate, vehicle registrations, among others. The provisions of Decree No. 70/2023 are also ratified.

The most relevant reforms include:

• A total of 41 state-owned companies are to be privatized, including YPF (National oil company), Aerolíneas Argentinas (National airline) , AYSA (National water supplier), Correo Argentino (National mail) and Banco de la Nación Argentina (National bank).
• The PEN is authorized to dispose of the shares or capital of the National State and/or its entities in any private company that does not provide the majority of the necessary social capital to exercise control over such entities.
• All regulation will require a prior regulatory impact analysis that includes an assessment where costs justify benefits, necessity, and reasonableness of the regulation (including chosen means), taking into account the economic, social, environmental, public health, and security effects to occur.
• A broad reorganization of the public administration.
• A national single entry is created for the central public administration, mandatory electronic procedures are established, and a process of paperless transition for the National State is to be completed within a period of two (2) years.
• Reform of the Anti Corruption Act.
• Reform of the law on public ethics to establish restrictions on advertising by public officials, especially in digital media (e.g. using official social networks for personal promotion or electoral candidacy) and prohibiting the use of state resources for electoral purposes.
• The State is allowed to employ and be a party to alternative dispute resolution methods both locally and in foreign jurisdictions.
• Reform of the administrative procedures act.
• A wide deregulation of the economy.
• Repeal of the single book price law, reform of the National Institute of Music (“Inamu”), and elimination of the National Theatre Institute and the National Fund for the Arts.
• Introduces new Antitrust law and creates the Market and Competition Agency as the Supervisory Authority.
• Legalizes reselling of sports events tickets.
• The customs regulations for carry-on luggage are reformed, revoking the current customs allowance.
• The regulation subjecting the installation and use of systems for the reception of broadcasting signals from satellites to the media law is repealed.
• The creation of Copyright Collective Management Associations is deregulated, allowing more than one per field and allowing creators to choose whether or not to be represented by them.
• Amendment of the Insurance Law to allow the opening of new insurance branches.
• Amendment of the Companies Law to allow the creation of single member public limited single member and limited liability companies.
• Introducing a system for regularization of tax, customs, and social security obligations is established with the aim of achieving the voluntary payment of such obligations.
• A regularization regime for assets located in Argentina or abroad is created.
• The National Institute Against Discrimination, Xenophobia and Racism is dissolved.
• Introduction of measures relating to the Bioeconomy.
• Reform of the film law, the structure of the National Institute of Cinema and Audiovisual Arts and its functioning.
• The Bill introduces the prohibition of the use of the word “free or similar” in the advertising of State services or benefits and provides that it must be made clear that it is “free access financed by taxpayers’ contributions”.
• Reforms to the hydrocarbons regime.
• The National Gas Regulation Agency and the National Electricity Regulation Agency are merged into a single National Electricity and Gas Regulation Agency.

The Bill contains six annexes with five different bills that include:

1. Annex I: List of State-Owned Companies subject to privatization.
2. Annex II: Incentive Scheme for Large Investments (ISLI).
3. Annex III: Antitrust Law.
4. Annex IV: Succession Law.
5. Annex V: Industries to be included in the ISLI.
6. Annex VI: Trial by Jury Law.

Each practice area of our law firm will be publishing a detailed report of the respective reforms and the effect of the repeals.