Digitalization in the

1. Digitalization in the legislation application of law Peter Darák 11th Tax Conference Budapest June 15, 2017

2. Environmental Factors • Technological pressure • Innovative dynamics • Digital transformation • Digital ecosystem • E-democracy • New life situations

3. Age of Printed Codes • Fragmented knowledge • Sectoral network • Partial strategic awareness • Conflicting approach • Disintegrated resources • Technology: an end in itself

4. Digital Past • New business models • New methods of information research • Community information • Online existence • Sharing in community

5. Digital Future • Anywhere, anything, anytime • Competition situation • Decreasing transaction costs • Extensive innovation (market of apps) • Network economy • Moore’s law, Gartner-model (Hype-cycle)

6. Integrated Legislation; Electronic support I. • Data structure capable to describe law • Intelligent research, storage, publication (norms of self-governments) • Data analysis (Statistics, impact assessment) • Editing, drafting • Internal communication (Sharing, commenting)

7. Integrated Legislation; Electronic supportII. • Back office • System integration, interoperability • Process governing • Experts' support • Identification, personalized account • Personalized services (follow-up of changes)

8. Integrated Legislation; Electronic support III. • Providing legal background • Identification of law • Notification on laws • Intelligent administrative and decision-drafting module • Data protection incidents’ warning system (NAIH)

9. Levels of E-court I. • 1. Providing information in electronic form (information on the website) • 2. One-way communication (forms are accessible, printable) • 3. Two-way communication (currently this means offline filling out and uploading via Client Gate, the central administration portal, or via the litigation portal; in the near future this will be transformed into an online system)

10. Levels of E-court II. • 4. E-transaction (everything can be done electronically, even payments) • 5. Additional, personalized e-services (e.g., sms on the date of the trial, automatic uploading of basic data in the form, etc.)

11. History of E-court • 2008, 2012 Electronic firm registration • 2013 first instance civil cases, heard by tribunals • 2015 registration of civil organisations, bankruptcy procedure • July 1, 2015 first and second instance civil cases • July 1, 2016 mandatory electronic contacting

12. E-court Today I. • BIIR system, registry of personsunder guardianship, registry of preliminary legal declarations, connecting them to the registry of personal data and domicile as well as taking over data from public registries • E-litigation • Firm registration procedures

13. E-court Today II. • Registration of civil organisations, publication of annual reports • E-indictment (currently the indictment is submitted both electronically and in hard copies, however, electronically they are not dispatched to the higher level courts) • E-complaint • Remote hearing, video conference

14. E-court Today III. • Length-of-litigation calculator • Sending sms and e-mail • E-file (it can refer to a special file format, furnished with e-signature and time stamp, that can be submitted electronically to the court; or it can refer to the entirety of documents generated at the court in relation to a particular case).

15. Legislative Background • Civil Procedure Code • Act CCXXII of 2015 on e-administration • 910/2014 EU regulation – eIDAS • 451/2016. (XII.19.) Gov. Decree • 44/2004. (XII.20.) Decree of Min. of Finance on payment of fees • 14/2002. (VII.1.) Decree of Min. of Justice on Court Admin. • 17/2014. (XII.23.) NJO regulation on document handling

16. Who are obliged? • Companies with registered office in Hungary • Legal representative • Administrative authorities • Prosecutor • It is optional in case of a natural person acting on his/her own behalf!

17. In which cases? • Lawsuits following from payment order • Administrative lawsuits • Cases brought against the municipal notary’s decision on the protection of possession • Lawsuits filed on the basis of the expert’s opinions of Expert Organisation for Certificate of Compliance • All civil, business and labour cases

18. Electronic and Paper Based Mixed Lawsuits, Clean Lawsuits • Mixed lawsuits: • E+P (plaintiff e. –defendant p.) • P+E (plaintiff p. –defendant e.) • Clean lawsuits: • E+E (plaintiff e. –defendant e.) • P+P (plaintiff p. –defendant p.) • e.= obliged or undertakes it • p.= not obliged and does not undertake it

19. Handling Paper-based and Electronic Documents Simultaneously I. • Document generation: partly e., partly p. • These together form the file of the case • Contents of the paper-based file and the e-file are identical (e.g. printed version of e-receipt form) • Instructions? • The “scarlet letter” (@) on the file cover

20. Handling Paper-based and Electronic Documents Simultaneously II. • Paper-based documents shall be entered in the record • Paper-based documents shall be scanned, saved (pdf) and uploaded • Attachments shall be named identically • Clause after scanning (e. copy)

21. Court records • Obligatory • If arrived after office hours, it shall be entered in the record next working day • Time of receipt is the time indicated on the confirmation of receipt sent by the Central System • The special system of the court sends a confirmation of receipt to the submitting party • Second instance, judicial review: in case of e-submission the date of receipt is the day on which the paper-based file arrives at the second instance court

22. Paying Fees I. • In e. litigation exclusively e-payment of fees (http://birosag.hu/ekapcsolattartas/illetek-megfizetese) • In case the fees are paid by the parties the payment is automatically processed by the BIR-O

23. Paying Fees II. • If the payment is done to the account of the court kept by the Treasury, the bank statement is sent by the Financial Department • The filing office of the court attaches it to the case file • ÜKM ID can be retrieved from BIIR program

24. Useful Information • http://e-tajekoztatas.justice.hu • http://birosag.hu/ekapcsolattartas/elektronikus-kapcsolattartas-birosagi-eljarasokban

25. Assessment • Why is it necessary to submit e- legal aid request also in paper based format? It is not necessary to do so. (If the client obtains the confirmation from the tax authority concerning tax payment obligation and it is recorded on the legal aid application form, it can be submitted also as a certified e-copy.) • e-summons, e-communication in the procedure, e-signature, video conference are all possible! • IT budget increase: 367%!!! • No significant impact on the number of cases

26. Future Objectives • Further development of browsing among anonymised court rulings • Electronic insight into court documents • General access to government registries (Central Government Service Bus)

27. Feedbacks I. • Budapest Bar Association – civil registries (deficiencies, sample documents, etc.,) •  E-PER Helpdesk (e-ugyintezes@birosag.hu ); answers basically questions relating to electronic communication, IT system usage, technical issues.

28. Feedbacks II. • Inquiries can be categorized according to the following topics: • - general information concerning IT conditions, • - payments of fees, • - filling out, submission of forms, • - notifications, • - e-signature, AVDH, • - IT-related questions, • - errors, • - submission lost, • - other (BETFR, browsing among anonymised court rulings...etc.).

29. Feedbacks III. • Where to download the program from • Does not run on his/her version • Does not find the form • Does not find the decision sent • Does not find confirmation of fee payment • Cannot open the certifying software