The Romanian Social Economy Law Olivia Rusandu Public Manager Social Services Directorate Ministry of Labour, Family, Social Protection and Elderly, Romania Fifth European Forum on Social Entrepreneurship, Plovdiv, 1st of April 2016

Law no 219/2015 Law’s Objectives: To regulate social economy area, To set up measures to promote and support this sector, To regulate the conditions for licensing (by public authorities) social enterprises Social economy (S.Ec.) (def.) = the activities organized independently from the public sector, whose serve general/community/ personal nonfinancial interest, by increasing vulnerable people’s employment and/or produce and supply goods, provide services or perform public works. S.Ec. is based on: private, voluntary initiative, solidarity, high autonomy and responsibility, as well as limited share of profit distribution.

Social Economy’s Principles Individual and social objectives priority, Collective solidarity and responsibility, Associate members and general/collective interest convergence, Members’ democratic control over its activities, Free and voluntary association in social economy entities, Legal person, autonomy and independence in relation to local authorities, Largest profit share’s allocation to general/collective/personal non-financial interest.

Social Economy’s Objectives Strengthening social and economic cohesion; Boosting/ increasing employment; Social services’ development, Which are achieved by the main general interest activities: Goods’ production, services’ delivery, works’ execution – aiming at increasing its members’ and communities’ welfare; Promoting activities which can generate/ ensure jobs for vulnerable people; Developing professional training programs for vulnerable people; Developing social services for increasing vulnerable people’s labour market insertion premises.

Law’s Definition of Terms activity of general interest = any activity in the economic, cultural, artistic, social, educational, scientific, health, sports, housing, environmental protection, continuing traditions, whose ultimate goal is achieving the objectives mentioned; social activity = activity aimed at achieving public/ community/ personal non- patrimonial interests; economic activity = any income generating activity; social enterprise = any private legal entity engaged in social economy (see below); insertion social enterprise = social enterprise that fulfills the conditions stipulated, social economy license = form of recognition of social enterprises’ contribution to the development of social economy; social trademark = insertion social enterprises’ certification, recognizing their direct contribution to the general interest and/or to improvement of vulnerable group situation;

Support to S. Ec. activities provided by public authorities (central /local) Recognizing the role of social economy enterprises by giving the social economy license; Recognizing the role of insertion social enterprises by giving social trademark; Developing mechanisms to support social insertion enterprises; Promote and support human resource development in social economy; Participation in social economy activities by collaborating in different forms, regulated by special laws; Establishment of information and counseling centers on social economy

The Social Enterprises Cooperative societies (reg.by Law1/2005), Credit cooperatives (reg.by GEO 99/2006), Associations and Foundations (reg.by GO 26/2000), Mutual aid houses (for employed people, for pensioners, reg.by Law 122/1996 and 540/2001), Agricultural societies (reg.by Law 36/1991), Any other legal person complying with he social economy’s def. and principles, Federations and unions of the above entities. Its status is recognized by the social economy license (granted for 5 years, by the S.Ec. department of the SPO, upon request to the legal person complying with the criteria below: a) Acts with a social purpose and/or in community’s general interest; b) Allocates at least 90% of profit to the social purpose and statutory reserve; c) Undertakes to convey goods after liquidation to one/more social enterprises; d) Applies the equity principle towards employees, ensuring equitable wages, with differences below 1:8

The Insertion Social Enterprise Has, on a permanent basis, at least 30% vulnerable people of its employees; Has as main purpose to fight exclusion, discrimination and unemployment through vulnerable people’s socio-professional insertion; Has the obligation to ensure accompanying measures for employed vulnerable people’s socio-professional insertion, such as: informing, counselling, access to professional training programs, work environment’s adjustment + other similar measures; To provide these measures, they cooperate with Public Social Assistance Services, SPOs, training providers, integrated social services community centers.

The Social Trademark Consists of: The certificate (3yrs availability) + a specific visual identity element, mandatory for all goods/works done or service delivery documents; Certifies the insertion social enterprise status, which comes with clear obligations: o To inform SPO in case of any change in constitutive or functioning documents, activity and annual financial reports; o To publish, in the first 3 months of the year, an annual social report (activity + financial report); o To accept to be monitored /inspected by MoLFSPE’s on complying with legal provisions for receiving the social trademark, o The certification and social trademark’s granting procedures, the specific visual identity element, Annual Social Report drafting procedures, as well as the social trademark’s suspension, withdrawal or cancellation conditions will be regulated by methodological norms, subsequent to the Social Economy Law.

Insertion Social Enterprises’ Financing and Supporting Mechanisms May be financed by public/private funds, national/international, according to the legal provisions for in place for each financing source; Free social trademark granting and free registration in the Social Enterprises’ Single Evidence Registry Free counselling from SPO, upon set up/development as a legal entity; Contracting authority may stipulate special conditions in the award documentation, aiming to obtain social effects, by economic agents; Facilities granted by Local public authorities: a)Free allocation of public spaces and/or lands in territorial-administrative units, for performing activities for which they were granted the social trademark; b) Support for the promotion of products produced and/or supplied, services delivery or works executed in the community, as well as for identifying markets for them; c) Support for tourism or related activities’ promotion, bythe local historical and cultural heritage’s valorization; d) Other facilities and taxes exemptions granted by local public authorities, according to the Law

Institutional Organization/Set up Social economy promotion month: May MoLFSPE’s Employment Directorate National Agency for Employment (central SPO) Social Economy Department CENTRAL LEVEL COUNTY LEVEL County Agency for Employment (local SPO) Social Economy Department Social Economy National Commission 1 president + 14 members (line ministries’ repr. : economy, tourism, labor, agriculture, public finances, justice, regional development and public administration, education + social economy entities’ and insertion social enterprises’ representatives

Social Enterprises’ Single Evidence Registry Managed by the Central SPO; Info regarding social enterprises and insertion social enterprises in Romania : a) full name; b) legal person category / type; c) date of establishment; d) activity domain; e) turnover / value of the assets, loss or profit recorded in the previous fiscal year; f) total number of employees; g) documents proving the belonging to vulnerable group/s; h) copy of the job description/s of employee/s belonging to vulnerable group/s; i) forms of support that the employer receives; j) employer’s deviations / sanctions; k) date of granting/suspention/ withdrawal of certification or social trademark.

Thank you very much for your attention! Благодаря ви много за вашето внимание! Olivia Rusandu Public Manager Social Services Directorate Ministry of Labour, Family, Social Protection and Elderly Romania