ACT No. XIX of 2024 An ACT to amend the Malta Digital Innovation Authority Act, Cap. 591, and to provide for other matters ancillary or consequential thereto.

I assent.

(L.S.)

FRANCIS ZAMMIT

DIMECH

Acting President

14th June, 2024

ACT No. XIX of 2024

An ACT to amend the Malta Digital Innovation Authority Act,

Cap. 591, and to provide for other matters ancillary or consequential

thereto.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same, as follows:-

(1) The short title of this Act is the Malta Digital Innovation

Authority (Amendment) Act, 2024.

(2) The scope of this Act is to amend and implement various

technology laws and to provide for matters ancillary or incidental

thereto.

PART I

AMENDMENTS TO THE MALTA DIGITAL INNOVATION

AUTHORITY ACT

This Part amends the Malta Digital Innovation Authority Act

and shall be read and construed as one with the Malta Digital

Innovation Authority Act, hereinafter in this Part referred to as "the

principal Act".

The principal Act shall be amended as follows

General

amendments to

the principal

(a) the word "Chairman" shall be substituted by the word

Act.

"Chairperson", wherever it occurs;

(b) in the Maltese version only, the word "tenforza" shall

be substituted by the word "tinforza", wherever it occurs; and

(c) the words "special law" or "special laws" shall be

substituted by the word "law" or "laws" respectively, wherever

they occur.

The title to the principal Act shall be substituted by the Substitution of

the title of the

following new title

principal Act.

"AN ACT to provide for the establishment of an Authority to be

known as the Malta Digital Innovation Authority, to support the

development and implementation of the guiding principles described in

this Act and to promote consistent principles for the development of

visions, skills and other qualities relating to innovative technology, and

to exercise regulatory functions regarding innovative technology and

related services and to provide for matters ancillary thereto or

connected therewith.".

The Arrangement of the principal Act shall be substituted by Substitution of the

Arrangement of

the following new Arrangement

the principal Act.

"ARRANGEMENT OF

THE ACT

Articles

Part I

Preliminary

1 – 2

Part II

Guiding Principles

3 – 4

Part III

Establishment, Functions 5 – 10

and Conduct of Affairs

of the Authority

Part IV

Officers and Employees 11 – 12

of the Authority

Part V

Financial Provisions

13 – 25

Part VI

Principles relating to

26 - 33

Recognition

Part VII

Deleted by Act No. XIX 34 - 38

of 2024

Part VIII

Enforcement and

39 - 44

Sanctions

Part IX

Administrative Review 45 - 54

Tribunal

Part X

Deleted by Act No. XIX 55 - 57

of 2024

Part XI

Miscellaneous Provisions 58 – 59

First Schedule

Innovative Technology

Second Schedule

Deleted by Act No. XIX

of 2024".

Article 2 of the principal Act shall be substituted by the

Substitution of

article 2 of the

following new article

principal Act.

2. (1)

In this Act, unless the context otherwise

"Interpretation.

requires

"the Act" means the Malta Digital

Innovation Authority Act and includes any

regulations and rules made thereunder and any

binding guidelines issued thereunder, unless the

context otherwise requires;

"Authority" means the Malta Digital

Innovation Authority established by article 5 and

any references in the Act or any other law to the

Authority shall, unless the context otherwise

requires, be construed as including a reference to

any person authorised by the Authority to act for

or on its behalf;

"Board" means the Board of Governors of

the Authority composed of the Chairperson and

members appointed in accordance with article 5;

"Chairperson" means the Chairperson of the

Authority and includes, in the circumstances

mentioned in article 5(3), the Deputy Chairperson

or any other person appointed to act as

Chairperson;

"decision"

includes

any

directive,

determination, direction, condition, measure,

requirement

or

specification,

howsoever

described, made by the Authority;

"innovative technology" includes any form

of digital technology, including but not limited to,

any type of digital technology listed in the First

Schedule, related products, solutions or services,

as well as processes and practices aimed or

designed at protecting digital technology and its

users;

"Minister" means the Minister responsible

for the Authority;

"powers of the Authority" means the

powers of the Authority resulting from the Act,

any special laws that the Authority is appointed or

entitled to administer or enforce, any

Governmental or ministerial appointment, or by

delegation, appointment or engagement by other

public entities, regulatory bodies and, or

competent authorities;";

"recognition" means any form of

recognition including a licence, registration,

permission,

authorisation,

approval,

acknowledgment, certification, attestation, or

mark of credit, granted or issued by the Authority

in accordance with the powers of the Authority;

"small and medium-sized enterprises" shall

have the meaning assigned to it under the

Commission Recommendation of 6 May 2003

concerning the definition of micro, small and

medium-sized enterprises (notified under

document number C(2003) 1422) or any law

enacted in relation thereto;

"Tribunal" means the Administrative

Review Tribunal established by article 5 of the

Administrative Justice Act;

"user" includes any person who uses or

otherwise participates in or engages with

innovative technology.

(2) Where reference is made to the powers of the

Authority to protect the public interest and users, it

shall be construed as a reference to members of the

public and users in any country and not exclusively to

users in Malta.

(3) The provisions of the Act shall be without

prejudice to provisions regarding activities concerning

public security, defence, national security and the

activities of the State in areas of criminal law.

(4) Unless the context otherwise requires, the

provisions of the Act and any regulations made

thereunder shall apply in the absence of substantive

rules on recognition of innovative technology as may

be contained in any special laws or in European Union

and, or international legislation applicable to Malta.

(5) In the case that the provisions of the Act

conflict with the provisions of any other legislation, the

provisions of the Act shall prevail.".

Article 3 of the principal Act shall be substituted by the

following new article

3. The

Government

shall,

through

the

development of the

establishment of the Authority in Malta, seek the

progress of the innovative technology sector in Malta

and the fostering of innovative technology development

in or from Malta through the recognition and regulation

of relevant innovative technology and related services,

the issuing and promotion of initiatives and incentives

aimed at the innovative technology sector and the

adoption of standards that add trust in innovative

technology. This shall be done

(a) in full respect of the importance of not

hindering innovation and the efforts and potential

of small and medium-sized enterprises and the

start-up sector in this area of activity;

(b) while considering that the approach to

recognition and regulation may be moderated by

the pace of changes and developments taking

place in this sector;

(c) in a manner ensuring that there are

standards in place for the protection of users, the

integrity of the market, and the public interest in

general;

(d) in a manner that incentivises

innovation

and

innovative

technology

development in or from Malta;

(e) in a manner that is consistent with

European and international laws applicable to

Malta; and

(f) in line with the values outlined in the

strategy of the Authority or similar document, as

may be updated from time to time.".

Article 4 of the principal Act shall be amended as follows

(a) sub-article (1) thereof shall be substituted by the

following new sub-article

"(1) The Government shall determine Malta’s

policies and objectives with regard to innovative

technology to support the development of Malta as a centre

of excellence for innovative technology and shall

appropriate such funds and provide such resources to the

Authority as it considers necessary to achieve such aims.";

(b) sub-article (2) thereof shall be substituted by the

following new sub-article

"(2) The Authority shall seek to achieve the

following main objectives and policies and shall have the

power

(a) to promote governmental policies that

favour the deployment, within the public

administration, of innovative technology by the

Government where necessary or appropriate;

(b) to foster, promote and facilitate the

advancement and utilisation of innovative technology

through, amongst others, programmes and schemes,

such as, but not limited to, a controlled regulatory

environment for the testing of innovative technology,

aimed at incentivising innovative technology

development in and from Malta and the creation of

trust in innovative technology;

(c) to assist developers of innovative

technology, in particular, but not exclusively, start-

ups and small and medium-sized enterprises in

meeting their regulatory and other obligations, and to

minimise risks to, and posed by, innovative

technology, by issuing recognitions and through

other programmes and incentives designed for this

purpose;

(d) to promote, through grants, programmes,

research, education, use and, or the making available

of facilities, hardware or personnel, the use and

development of innovative technology and the

application of ethical standards in the development

and use of such innovative technology

Provided that the giving of such grants

shall not prejudice and, or preclude the Authority’s

oversight and regulatory functions and powers;

(e) to promote, and strive to safeguard,

maintain and protect the reputation of Malta in

relation to innovative technology and

the

development and use of innovative technology;

(f) to protect the interest of users of

innovative technology and the public in general and

in so doing take any necessary action, including

without limitation to disclosure of information and

documents which the Authority in its discretion

deems that merits disclosure and, or when required

by law, to be disclosed to the general public and, or

referred to any other competent authority and the

pursuance of any further act or collaboration from or

with other public entities, regulatory bodies and, or

competent authorities and, or regulatory bodies;

(g) to provide a sound financial basis to the

Authority, through, amongst others, the levying of

fees by the Authority, including the imposition of

interest in the case of late payment at the rate to be

determined by the Authority, for the Authority to be

able to achieve its purposes;

(h) to promote harmonised practices and,

where applicable, to facilitate the adoption of

standards in innovative technology in Malta in

conformity with international norms, standards, rules

and, or laws and particularly with those of the

European Union;

(i) to assist the competent data protection

authorities as required by law;

(j) to promote and encourage ethical and

legitimate criteria in the design and use of innovative

technology, and to enforce, as deemed necessary, the

quality of services and security of the innovative

technology for which a recognition has been granted

by the Authority;

(k) through

collaboration

with

other

regulatory bodies and competent authorities with

responsibility for the prevention of money laundering

and the financing of terrorism and crime in general,

to support the prevention of money laundering,

terrorist financing and the commission of any other

crime in, or by means of the use of innovative

technology;

(l) to promote trust, transparency, reliability,

robustness, safety and auditability in the design and

use of innovative technology;

(m) to promote legal certainty in the

application of laws, in a national and cross-border

context, and the development of appropriate legal

principles for the effective application of law to

innovative technology; and

(n) to promote security by design and

security by default criteria with reference to

innovative technology.";

(c) in sub-article (3) thereof, the words "public

administration and transport." shall be substituted by the words

"public administration, logistics, transport, sports and

entertainment.";

(d) in sub-article (4) thereof, the words "innovative

technology arrangements" shall be substituted by the words

"innovative technology"; and

(e) immediately after sub-article (4) thereof, as

amended, there shall be added the following new sub-articles

"(5) The Authority shall be the national focal point

for the recognition of innovative technology and shall,

when it deems necessary, collaborate with other public

entities, regulatory bodies and, or competent authorities in

promoting measures to be adopted in meeting and reducing

the risks identified with its intended use.

(6)

For the purpose of this article

(a) "security by design" means measures

adopted at the earliest stages of the design and

development of innovative technology, and also

throughout its lifetime, to protect its security to the

highest possible degree; and

(b) "security by default" means the default

configuration of innovative technology to the most

secure settings possible.".

Article 5 of the principal Act shall be amended by the Amendment of

article 5 of the

principal Act.

(a) sub-article (1) thereof shall be substituted by the

following new sub-article

"(1) There shall be a body, which shall be referred

to as the Malta Digital Innovation Authority, the activities

and business of which shall be carried out by a Board

composed of a Chairperson and not less than four (4) and

not more than eight (8) other members who, in the opinion

of the Minister, shall be persons with the relative

qualifications and experience inter alia in matters relating

to innovative technology, financial services, audit and

accounting, law, regulation and other subjects which may

be relevant to the supervisory and regulatory competence

of the Authority.";

(b) in paragraph (d) of sub-article (4) thereof, the words

"a criminal offence under a regulatory law referred to in the

Second Schedule," shall be substituted by the words "a criminal

offence under any law,";

(c) paragraph (c) of sub-article (6) thereof shall be

substituted by the following new paragraph

"(c) if any member fails to perform his duties for a

continuous period exceeding five (5) months without any

valid justification.";

(d) in sub-article (9) thereof, the words "Any member of

the Authority" shall substituted by the words "Any member of

the Board"; and

(e)

sub-article (10) thereof shall be deleted.

Article 6 of the principal Act shall be amended as follows

(a) in sub-article (1) thereof the words "in Malta of all

innovative technology arrangements and innovative technology

services in order to achieve the principles and objectives outlined

in Part II." shall be substituted by the words "in or from Malta of

innovative technology in order to achieve the policies and

objectives outlined in article 4.";

(b) in sub-article (2) thereof the words "supervisory and

regulatory functions in the field of innovative technology

arrangements and innovative technology services as may from

time to time be assigned to the Authority by any special law."

shall be substituted by the words "supervisory and regulatory

functions in the field of innovative technology in accordance

with the powers of the Authority.";

(c) sub-articles (3), (4), (5), (6) and (7) thereof shall be

substituted by the following new sub-articles

"(3) The Authority shall, without prejudice to any of

the powers of the Authority or functions, and in adherence

with article 3, have the powers to

(a) publish and administer such programmes,

schemes and initiatives that, in its view, are necessary

to promote the interests of the innovative technology

sector and its users, including, but not limited to,

schemes of recognition whereby, amongst others, the

innovative technology, and the risks posed by its

application are assessed and tested and provided with

a certificate or mark of assurance or approval, in any

manner that they are referred to

Provided that the Authority shall publish

the terms of such programmes, schemes and

initiatives in a clear and transparent manner;

(b) unless otherwise determined by or under

any applicable laws and, or regulations, determine

those professional services related to innovative

technology that require recognition by the Authority

and publish and administer such programmes,

schemes and initiatives that, in the view of the

Authority, are necessary to foster trust in innovative

technology, including services for the auditing and

testing of innovative technology, or aspects thereof,

and the risks posed by their use or application;

(c) publish and administer such programmes,

schemes and initiatives, including those ensuring that

a controlled regulatory environment for the testing of

innovative technology is available, for the fostering

of the development of innovative technology in or

from Malta;

(d) obtain from the Government, other local

authorities or agencies and, or apply to the European

Union or other international bodies for the grant of

funds to be utilised as grants to be allocated to

innovative technology by way of incentives and

awards and administer such grants and incentives to

applicants in accordance with fair, transparent and

non-discriminatory conditions to be published by the

Authority and which are accessible through the

website of the Authority, from time to time;

(e) perform the functions of the National

Cybersecurity Certification Authority in accordance

with Regulation (EU) 2019/881 of the European

Parliament and of the Council of 17 April 2019 on

ENISA (the European Union Agency for

Cybersecurity)

and

on

information

and

communications

technology

cybersecurity

certification and repealing Regulation (EU) No. 526/

2013 (Cybersecurity Act), and advise the Minister

on the adoption and publication of laws necessary to

implement European and international laws relating

to cyber security certification;

(f) be

consulted

on

any

planned

implementation of laws and policies relating to the

national imposition of obligations on innovative

technology in any area or sector as well as in relation

to the implementation of European Union and, or

international legislation relating to innovative

technology;

(g) subject to any limitations that may be

imposed on the powers of the Authority, establish

and levy fees in relation to innovative technology,

including on any recognition and any persons, such

as providers of services relating to innovative

technology participating in the initiatives and, or

schemes published or administered by the Authority,

whether acting alone as well as jointly with other

public entities, regulatory bodies and, or competent

authorities, subject to the publication of such fees in

advance and in a transparent fashion and accessible

through the website of the Authority, and the

Authority shall also have the power to establish and

levy fees for services rendered to other public

entities, regulatory bodies and, or competent

authorities;

(h) regulate,

issue

recognitions

and

conditions, including in principle temporary or

partial recognitions, as may be further elaborated by

the Authority pursuant to its guidelines and test,

monitor and supervise innovative technology, in or

from Malta, in accordance with the Act and any

subsidiary legislation made thereunder;

(i) keep under review all practices,

operations and activities relating to any matter

regulated by or under the Act or any other special law

which the Authority is entitled to administer or

enforce or any European Union and, or international

legislation applicable to Malta;

(j) promote high standards of conduct and

governance throughout the innovative technology

industry, corresponding with the levels of risk posed

by the use of innovative technology;

(k) enforce compliance with obligations and,

or terms arising from and, or in terms of the law;

(l) own, manage, supervise and control and

as required use, hold, develop and provide, maintain

a sub-licence and, or make available any wallet or

similar solution or software, any wallet solution,

account or other facility, in particular in relation to

any form of digital identity, accreditation, data and

digital assets;

(m) engage with facilities, entities and

persons, including service providers and carry out

transactions as it may consider necessary for the

fulfilment of its functions, and enter into any contract

for the supply of goods or materials or the execution

of work or the rendering of services to, or for the

benefit and, or functioning of the Authority,

including but not limited to, in pursuance to

paragraph (l) and, or the innovative technology

sector;

(n) monitor the effects of laws on the use and

operation of innovative technology and undertake or

commission such study, research or investigation

which it may deem necessary in this regard;

(o) issue binding documentation such as

guidelines and provide information and guidance on

any matter, including definitions regulated by, or

under the Act, or any other special law which the

Authority is entitled to administer or enforce, or any

European Union and, or international legislation

applicable to Malta;

(p) determine, by virtue of guidelines or

other binding documentation, which products,

solutions or services may be classified as "innovative

technology" as defined in the Act and the purposes,

qualities, features, attributes, behaviours or aspects

thereof that shall be recognised by the Authority;

(q) support and liaise with non-profit

organisations and educational institutions in Malta

which are established for the promotion of the use and

development of innovative technology;

(r) keep under review developments on

relevant subjects relating to innovative technology in

order to ensure that activity in Malta is generally

consistent with internationally recognised standards

and norms of good practice;

(s) enter into agreements with other public

bodies and authorities to better coordinate the

effective and efficient exercise of the respective

functions of such public bodies and authorities where

they have common functions, interests or aims,

including the delegation to the Authority by the said

public bodies and authorities of certain powers

appertaining to them and the delegation by the

Authority to such other public bodies and authorities

of certain powers of the Authority;

(t) collect relevant statistical and other

information as may be required by the Authority in

relation to innovative technology;

(u) perform such other functions, including

functions aimed at promoting innovative technology,

as may from time to time be assigned to it by the

Minister, or by governmental or ministerial

appointment or by engagement by other public

entities, regulatory bodies and, or competent

authorities;

(v) impose administrative penalties and, or

measures and, or fines in accordance with the powers

of the Authority in relation to a breach of the Act,

any regulations made thereunder, any special law

which the Authority is entitled to administer or

enforce, or any recognition issued by the Authority or

any European Union and, or international legislation

applicable to Malta;

(w) advise the Minister on the formulation of

policy in relation to matters regulated by, or under

the Act, and in particular in relation to any

international obligations;

(x) otherwise advise the Minister on any

matter connected with its functions under the Act or

any other law;

(y) formulate and implement the policies and

strategies with short-term and long-term objectives in

relation to the matters connected with its functions

under the Act or any other law;

(z) encourage users of innovative technology

to establish places of business in Malta;

(aa) advise the Minister on the planning and

development of the innovative technology industry as

well as on the infrastructure supporting the

innovative technology industry;

(bb) promote and advance Malta as a

destination for high value commercial users of

innovative technology to establish places of business

in Malta;

(cc) prescribe any forms relating to any of the

applications and processes involved in the

recognition of innovative technology;

(dd) establish

or

participate

in

the

establishment and operation of entities whose

function shall be necessary, ancillary or conducive to

the attainment of the functions and, or objectives of

the Authority under the Act or any regulations made

thereunder or any special law which the Authority

has the power to administer or enforce or any

European Union and, or international legislation

applicable to Malta;

(ee) perform the functions of a competent

authority in accordance with Regulation (EU) 2022/

868 of the European Parliament and of the Council of

30 May 2022 on European data governance and

amending Regulation (EU) 2018/1724 (Data

Governance Act) for data altruism services and data

intermediation services;

(ff) carry out functions

in line with

cooperation mechanisms with

other national

competent authorities; and

(gg) appoint a qualified person or otherwise

require that the person concerned appoints a qualified

person in the case that he considers this to be

appropriate or expedient to perform those tasks in

terms of those terms and conditions that the

Authority may order. The fees and expenses incurred

by the qualified person in this respect or which are

incidental to such an appointment shall be paid by the

person in respect of whom the qualified person was

appointed, unless determined otherwise by the

Authority. The Authority may issue guidelines that

establish the procedures or requisites related with this

appointment and these guidelines may also establish

the powers, duties and obligations of the qualified

person.

(4) (a) Without prejudice or limitation to any of

the powers of the Authority, the Authority shall have the

power, strictly for the purposes of carrying out its

functions, to request any person or any person who may

have in her possession relevant documentation to provide it

with any information, documents and reports, including

financial information, that the Authority considers

necessary

Provided that the information requested by the

Authority shall be proportionate to the performance of its

functions and obligations under the Act or any regulations

made thereunder or any special law which the Authority

has the power to administer or enforce or any European

Union and, or international legislation applicable to Malta,

and in requiring any information as aforesaid, the

Authority shall specify the reason for such request.

(b)

Where the Authority requires information

relating to the intellectual property, trade secrets or

commercially sensitive information related to any

innovative technology, it shall only demand that

information which is strictly necessary for its

purposes and shall keep such information

confidential.

(c) A person who is notified with a request

for information shall comply promptly with the

request and within the timeframes and according to

any level of detail, as may be required by the

Authority.

(d) Any person who has any information

requested by the Authority in terms of the Act and its

officers or employees shall, on a written request from

the Authority, provide expeditiously to the Authority

any information required by the Authority in terms of

the Act, may not raise in this regard, an exception or

defence including any obligation with regard to the

prohibition or the confidentiality that arise from

contractual law or in any other manner refuses to

conform with such a request from the Authority. No

action for a breach of contractual law or disciplinary

action may be taken in a direct or indirect manner by

a person in regard to officers and employees due to

the fact that they provided the Authority with any

required information by the Authority as provided in

sub-article (4) and any such contractual or

disciplinary measure shall be deemed as null and

void

Provided that any such person shall, in

complying with the provisions of this sub-article, specify

clearly to the Authority if any information provided by him

is to be considered as confidential for commercial reasons.

Also said person shall specify clearly his reasons to the

Authority. The Authority shall decide whether the

information shall be treated as such

Provided further that the provisions of this sub-

article relating to confidentiality shall apply to any

information provided to the Authority for whatever reason

whether under the Act or any other law which the

Authority is entitled to administer or enforce.

(5)

(a)

The Authority may opt to publish

information and, or guidelines relating to its rulings and

determinations which are accessible through the website of

the Authority when said rulings and determinations affect

applications, the interpretation of the provisions of the Act,

or any special law which it has the power to administer or

enforce or any European Union and, or international

legislation applicable to Malta, in order to ensure that

applicants and the public in general are aware of the

position taken by the Authority on matters of general

interest relating to innovative technology.

(b) The publication of such information and,

or guidelines shall not in any way limit the freedom

of the Authority to vary its policies or approach on

any issue based on further review and experience or

development of innovative technology or law

generally. When such variations take place the

Authority shall notify in later publications the

connection and review to previous publications.

(c) The Authority shall have the power to

determine when any of its publications, or part

thereof, shall become binding.

(6) The Authority shall also have such other

functions, responsibilities and powers as are set out by or

under the Act or as may be assigned to it by or under any

other law including all such powers as are necessary for, or

incidental to the performance of its functions and powers.

(7) The Authority shall in the carrying out of its

functions seek to ensure that the measures taken are

proportionate having regard also to the objectives of the

Authority.";

(d)

sub-articles (8) and (9) thereof shall be deleted.

Immediately after article 6 of the principal Act there shall be

added the following new article

6A. (1) Without prejudice to any other law, for

the purpose of carrying out market surveillance,

investigation and enforcement in accordance with

Regulation (EU) 2019/1020 of the European Parliament

and of the Council of 20 June 2019 o n market

surveillance and compliance of products and amending

Directive 2004/42/EC and Regulations (EC) No. 765/

2008 and (EU) No. 305/2011 and other European Union

legislation, the Authority shall have the powers listed in

such Regulation and other European Union legislation,

with regard to functions where the Authority has been

designated as market surveillance authority, including

the power to

(a) require economic operators to provide

relevant documents, technical specifications, data

or information on compliance and technical

aspects of the product, including access to

embedded software in so far as such access is

necessary for the purpose of assessing the

product’s compliance with applicable European

Union harmonisation legislation, in any form or

format and irrespective of the medium of storage

or the place where such documents, technical

specifications, data or information are stored, and

to take or obtain copies thereof;

(b) require economic operators to provide

relevant information on the supply chain, on the

details of the distribution network, on quantities

of products on the market and on other product

models that have the same technical

characteristics as the product in question, where

relevant for compliance with the applicable

requirements

under

European

Union

harmonisation legislation;

(c) require economic operators to provide

relevant information required for the purpose of

ascertaining the ownership of websites, where the

information in question is related to the subject

matter of the investigation;

(d) carry out unannounced on-site

inspections and physical verifications;

(e) enter any premises, land or means of

transport that the economic operator in question

used for purposes related to the economic

operator’s trade, business, craft or profession, in

order to identify non-compliance and to obtain

evidence;

(f) start investigations on its own

initiative in order to identify non-compliance and

ensure that the situation is rectified;

(g) require economic operators to take

appropriate action to stop circumstances of non-

compliance or to eliminate the risk;

(h) take appropriate measures where an

economic operator fails to take appropriate

corrective action or where the non-compliance or

the risk persists, including by prohibiting or

restricting the making available of a product on

the market or by ordering that the product is

withdrawn or recalled;

(i) impose administrative penalties in

accordance with Article 41 of Regulation (EU)

2019/1020 of the European Parliament and of the

Council of 20 June 2019 on market surveillance

and compliance of products and amending

Directive 2004/42/EC and Regulations (EC) No.

765/2008 and (EU) No. 305/2011 and according

to European Union legislation;

(j) acquire product samples, including

under a cover identity, to inspect those samples

and reverse engineer them in order to identify

non-compliance and to obtain evidence;

(k) where no other effective means are

available to eliminate a serious risk

(i) to require the removal of content

referring to the related products from an

online interface or require the explicit

display of a warning to end users when they

access an online interface; or

(ii) where a request according to

sub-paragraph (i) has not been complied

with, to require information society service

providers to restrict access to the online

interface, including by requesting a relevant

third party to implement such measures; and

(l) use any information, document,

finding, statement, or any intelligence as evidence

for the purpose of its investigations, irrespective

of the format in which and medium on which they

are stored.

(2) For the purposes of this article, "economic

operator" shall have the same meaning assigned to it in

Regulation (EU) 2019/1020 of the European Parliament

and of the Council of 20 June 2019 o n market

surveillance and compliance of products and amending

Directive 2004/42/EC and Regulations (EC) No. 765/

2008 and (EU) No. 305/2011.".

Article 7 of the principal Act shall be substituted by the Substitution of

article 7 of the

following new article

principal Act.

7. (1) The affairs and business of the Authority

shall be the responsibility of the Board, which

responsibility shall be exercised through the

Chairperson.

(2) The first Chief Executive Officer shall be

appointed by the Minister.

(3) The day-to-day administration, recruitment,

a n d o r g a n i s a t i o n o f t h e A u t h o r i t y, a n d t h e

administrative control of its officers and employees

shall be under the control of the Chief Executive

Officer of the Authority who shall also have such other

powers, as may from time to time, be delegated to him

by the Board.

(4) The Chief Executive Officer shall be tasked

with the implementation of the objectives of the

Authority in the exercise of its functions at law, as set

out by the Board, and without prejudice to the

generality of the foregoing he shall

(a) have control of the general

administration, supervision and operations of the

Authority and any ancillary activity related to it;

(b) develop the necessary strategies for

the implementation of the objectives of the

Authority and implement such strategies as

directed by the Board;

(c) advise the Board on any matter it may

refer to him or any matter he considers necessary

or expedient;

(d) perform such other duties as the Board

may assign to him from time to time; and

(e) at the end of each financial year,

present to the Board estimates of the income and

expenditure of the Authority for the following

financial year for the Board’s approval.

(5) The Chief Executive Officer shall attend all the

meetings of the Board but shall not vote at such

meetings.

(6) The Authority may exercise any one or more of

its functions either directly or through any of its officers

or employees or through an agency authorised for that

purpose, or through a contractor or other person with

whom an agreement for the performance of any one or

more of such functions has been entered into

Provided that nothing in this sub-article shall

authorise the Authority to contract or delegate any of

(a) its regulatory functions; or

(b) its recognition functions, unless such

functions are expressly delegated to another

public entity, regulatory body and, or competent

authority established by law.

(7) The Board may establish committees of the

Board, composed of members of the Board and other

persons who may be invited to participate in the

committee, to address particular issues as may be

assigned to it by the Board.

(8) The Board may also establish a National

Technology Ethics Committee for the purpose of

ensuring that proper standards of ethics are upheld in

the use of innovative technologies which are recognised

by the Authority and to assist upon their request other

authorities established in Malta where innovative

technology is being used in their areas of competence.

The said National Technology Ethics Committee shall

have such functions and shall be composed of such

members as may be determined by the Board.".

Article 8 of the principal Act shall be substituted by the

following new article

8. (1) Except as expressly provided for in other

provisions of the Act, the Authority shall act

independently, impartially and without bias in the

exercise of its regulatory, supervisory, market

surveillance and enforcement functions at law,

including in the development of guidelines and binding

documentation, its internal procedures and the

organisation of its staff. In doing so the Authority shall

not seek or take instructions from any other person in

relation to the exercise of the tasks assigned to it by

law, and this without prejudice to any supervision,

however so described, that may be undertaken in

accordance with the Constitution.

(2) The Minister, in relation to matters that affect

the public interest, may give to the Authority, from

time to time, policy directions in writing of a general

character, not inconsistent with the provisions of the

Act and, on the policies to be followed in the carrying

out of the functions vested in the Authority by or under

the Act.

(3) The provisions of article 77 of the Public

Finance Management Act shall not apply to the

Authority.".

Article 9 of the principal Act shall be amended as follows

Amendment of

article 9 of the

principal Act.

(a) sub-article (2) thereof shall be substituted by the

following new sub-article

"(2) The legal and judicial representation of the

Authority shall vest in any one of the Chairperson, the

Chief Executive Officer, or such other member or members

of the Board or officer of the Authority as the Board may

appoint

Provided that the Board may appoint one or

more members of the Board, or one or more officers of the

Authority to appear in the name or on behalf of the

Authority in any judicial proceedings and in any act,

contract, instrument or other document whatsoever."; and

(b) in sub-article (3) thereof, the words "signed by the

Chairman, or such other member of the Board, the Chief

Executive Officer, if any," shall be substituted by the words

"signed by the Chairperson or the Chief Executive Officer or

such other member of the Board,".

Sub-article (2) of article 10 of the principal Act shall be

substituted by the following new sub-article

"(2) Half the number of members constituting the Board

at any given time shall form a quorum. A decision shall be

adopted by a simple majority of the votes of the members present

and who may vote. The Chairperson, or in the absence of the

Chairperson, the Deputy Chairperson or any other person

appointed to act as Chairperson, shall have an initial vote and, in

the event of an equality of votes, a casting vote.".

Sub-article (2) of article 13 of the principal Act shall be

substituted by the following new sub-article

"(2) In furtherance of the provisions of sub-article (1), the

Authority shall levy all fees, rates and other payments prescribed

under the Act or any other special law administered by the

Authority, or set by the Authority in accordance with the powers

of the Authority or any European Union and, or international

legislation applicable to Malta.".

Immediately after article 13 of the principal Act, as amended,

there shall be added the following new article

13A. The Authority shall be exempt from any

"Exemption from

taxes.

liability for the payment of income tax, duty on

documents and transfers, and customs and excise duty,

under any law.".

In sub-article (2) of article 20 of the principal Act the words

"appointed by the Authority and approved by the Minister:" shall be

substituted by the words "appointed by the Authority:".

Article 21 of the principal Act shall be amended as follows

(a) in sub-article (1) thereof the words "by a resolution

of the Authority." shall be substituted by the words "by

resolution of the Board."; and

(b) sub-article (3) thereof shall be substituted by the

following new sub-article

"(3) Cheques against and withdrawals from any

bank account of the Authority shall be signed by such

officer of the Authority as may be appointed or designated

by the Authority for that purpose and shall be

countersigned by the Chairperson or Chief Executive

Officer, or such other member of the Board or officer of the

Authority as may be authorised by the Authority for that

purpose.".

Article 22 of the principal Act shall be deleted.

Deletion of

article 22 of the

principal Act.

Article 24 of the principal Act shall be deleted.

Deletion of

article 24 of the

principal Act.

In article 25 of the principal Act the words "under this Act, or Amendment of

any other special law which the Authority is entitled to administer or article

principal Act.

enforce, or rules or regulations aforesaid, unless the act or omission is

shown to have been done or omitted to be done in bad faith." shall be

substituted by the words "in accordance with the powers of the

Authority unless the act or omission is proven to have been done or

omitted to be done in bad faith.".

The heading of Part VI of the principal Act shall be Substitution of

the heading of

substituted by the following new heading

Part VI of the

principal Act.

"Principles relating to Recognition".

Article 26 of the principal Act shall be substituted by the Substitution of

article 26 of the

following new article

principal Act.

(1) The Authority shall establish and

"Conditions for the

prescribe rules, in the form of binding documentation

s u c h a s gui d e l i n es , i n re l a t i o n t o th e f o rm s o f

recognition it shall grant or issue and in relation to

recognition programmes, initiatives and schemes it

shall administer in accordance with the powers of the

Authority, laying down the terms and requirements that

applicants shall satisfy.

(2) The Authority may also determine when

innovative technology which may be the subject of

requirements under any law which the Authority is

entitled to administer or enforce, or under terms and

conditions of recognition, programmes, initiatives and

schemes issued and, or administered by the Authority,

is exempt from such requirements.

(3) Where the Authority deems necessary, the

Authority shall keep a register containing a list of

recognition holders and recognitions issued by the

Authority. This register, which may be publicly

available at the discretion of the Authority, including on

the Authority’s website, shall in particular indicate

(a) the form of recognition and the

programme, initiative and, or scheme under

which it is granted;

(b) each innovative technology product,

solution or service which is recognized;

(c) all such details as the Authority shall

consider necessary to identify the relevant

recognition holder; and

(d) the information on all matters which is

required to be entered into the register for public

information in accordance with the provisions of

the Act, any other applicable law, or which the

Authority deems to be in the public interest and

such information shall be updated on a regular

basis.".

25. Article 27 of the principal Act shall be amended as follows

(a) the marginal note thereof shall substituted by the

following new marginal note

"Power of the Authority to grant or refuse

recognition.";

(b) sub-articles (1) and (2) thereof shall be substituted by

the following new sub-articles

"(1) The Authority shall have the power to grant or

refuse to grant an innovative technology recognition in

accordance with the Act or under any special law which

the Authority is entitled to administer or enforce or any

European and, or international legislation applicable to

Malta, in accordance with the requirements and

conditions relating to the particular programme,

initiative or scheme for the recognition of the particular

innovative technology that shall be accessible through

the website of the Authority, subject to its reasoned

decision being communicated to the applicant and

subject to the applicant’s right of appeal, as provided

for hereunder.

(2) (a) The Authority, when granting a

recognition, may subject it to such conditions as it may

deem appropriate, and having granted such recognition

it may, from time to time, vary or revoke any condition

so imposed or impose new conditions.

(b) For the better carrying out of the

provisions of the Act, the Authority may, from

time to time, issue and publish recognition

conditions, rules and guidelines which shall be

binding on recognition holders as may be

specified therein.

(c) In the interest of transparency and

market awareness, such recognition, conditions,

rules and guidelines may lay down, amongst

others, additional requirements and conditions in

relation to the activities of applicants and

recognition holders and any other matters as the

Authority may consider appropriate.";

(c)

in sub-article (3) thereof

(i) the words "When considering whether to grant

or refuse to grant an innovative technology authorisation

the Authority shall, in particular, have regard to -" shall be

substituted by the words "When considering whether to

grant or refuse to grant recognition, the Authority shall,

amongst others, but without prejudice to the generality of

the powers of the Authority, have regard to:"; and

(ii) in paragraph (d) thereof, the words "all other

parties

connected

with

innovative

technology

arrangements." shall be substituted by the words "all other

connected parties."; and

(d)

sub-articles (4) and (5) thereof shall be deleted.

26. Article 28 of the principal Act shall be amended as follows

Amendment of

article 28 of the

principal Act.

(a) the marginal note thereof shall be substituted by the

following new marginal note

"Refusal to grant recognition.";

(b)

sub-article (1) thereof shall be amended as follows

(i) the words "The Authority, acting in line with

the governing principles and in furtherance of the

regulatory objectives established by the Act, or any other

special law which the Authority is entitled to administer or

enforce or any European Union and, or international

legislation applicable to Malta, shall refuse to grant an

innovative technology authorisation in any of the following

instances:" shall be substituted by the words "Without

prejudice to the generality of the powers of the Authority,

the Authority may issue guidelines or otherwise specify

those instances in which it may refuse to grant a

recognition, which instances may include the following:";

(ii) paragraph (c) thereof shall be substituted by the

following new paragraph

"(c) if the Authority, in its discretion, is not

satisfied that the applicant, any relevant persons,

including persons with delegated authority of

representation, possess the required qualities and, or

competencies and, or qualifications, including those

relating to security features and automated

technology systems used and those related to fit and

proper requirements, imposed by the Authority; or";

(iii) paragraph (d) thereof shall be deleted;

(iv) paragraph (f) thereof shall be substituted by the

following new paragraph

"(f) if the Authority, in its discretion is not

satisfied in accordance with the circumstances of the

case that

(i) the applicant

is capable of

sustainably

financing

the

innovative

technology;

(ii) the applicant has the necessary

competence, technical know-how and resources

to develop the innovative technology or

provide the service;

(iii) the applicant has a business model

to develop and, or maintain the innovative

technology or provide the service in a viable

manner which is compliant with the applicable

regulatory instruments in force; and

(iv) the applicant shall comply with all

requirements and obligations applicable should

a recognition be issued by the Authority,

including but not limited to financial

safeguards; or";

(v) immediately after paragraph (f) thereof, as

substituted, there shall be added the following new

paragraphs

"(g) if the Authority believes that the

applicant’s proposal is not compliant with the

regulatory instruments in force;

(h) if the Authority believes that granting a

recognition to the applicant may pose a risk to the

reputation of Malta or is otherwise not in the public

interest or contrary to regulatory objectives

established by the Act;

(i) if the Authority believes that the

innovative technology may be used in a manner that

is contrary to public morality, or third party personal

rights or is considered a potential security threat, or

may pose a risk to the reputation of Malta, or is

considered to be not in the public interest; or

(j) if the Authority, in its reasonable

discretion, is not satisfied that the applicant has

complied with and, or has satisfied the required

conformity assessment procedure, where applicable

and, or other procedures of the Authority."; and

(d)

sub-articles (2) and (3) thereof shall be deleted.

Article 29 of the principal Act shall be substituted by the Substitution of

article 29 of the

following new article

principal Act.

The Authority shall, within a time period to be

established through guidelines, which period may vary

depending on the type of recognition, notify an applicant

in writing of its decision to refuse an application for

recognition.".

28. Article 30 of the principal Act shall be substituted by the Substitution of

article 30 of the

principal Act.

following new article

(1) The Authority may at any time revoke,

Authority to revoke,

cancel or suspend a recognition if, following the issuing

of a recognition

(a)

one of the grounds for which the

Authority may have rejected the recognition

holder’s application arises;

(b) where the recognition is issued based

on incorrect or false information provided to the

Authority;

(c) where at the discretion of the

Authority, this is in the interest of the users of the

innovative technology concerned, public safety or

morality, or the reputation of Malta;

(d) where this is necessary as a result of a

change in the legal framework which necessitates

such a revocation, cancellation or suspension of

recognition; or

(e) where this is necessary on the basis of

European Union and international laws applicable

to Malta

Provided that without prejudice to any

other breaches under any other law that this may

give rise to, the providing of false information to

the Authority shall constitute an offence in

accordance with the Act and shall be punishable in

accordance with the provisions of the Act.

(2) The Authority shall have the power to publicise

the revocation, cancellation or suspension of its

recognitions and the reasons thereof, should it consider

that this is necessary .

(3) No action shall lie against the Authority in

terms of the Media and Defamation Act, or any other

law relating to defamation or slander, for the issuing of

bona fide public statements in terms of this article.

(4) The Authority may further specify those

circumstances which may lead to a suspension,

cancellation or revocation of a recognition.

(5) In addition to the above mentioned measures

relating to the suspension, cancellation or revocation of

a recognition, the Authority shall have the power to

impose administrative penalties for breaches of the

conditions or obligations imposed on applicants,

recognition holders or third parties by the Authority in

accordance with the powers of the Authority or the Act

or any other law which the Authority is empowered to

administer or enforce.

(6) Such administrative penalties as may be

imposed by the Authority under the previous sub-article

shall be in accordance with article 42 and may be

imposed by the Authority in addition or in substitution

of any other measures imposed by the Authority.".

29. Article 31 of the principal Act shall be substituted by the Substitution of

article 31 of the

following new article

principal Act.

(1) The Authority shall inform the

recognition holder and establish the procedure to be

adopted, prior to taking any of the measures in

accordance with article 30, which procedure may vary

depending on the type of recognition it is granting.

(2) Notwithstanding the provisions of sub-article

(1), where the Authority has prima facie evidence that

the infringement

(a) represents an immediate and serious

threat to the users of the innovative technology,

the public interest or to the application of

mandatory rules of law;

(b) creates or may create serious

economic or operational problems for third

parties, in particular other providers or users of

innovative technology; and, or

(c) would result in harm to Malta and, or

the European Union and, or the welfare of users

and, or competition, including within the

innovative technology sector,

the Authority may take urgent measures including

ordering the immediate cessation of the act or omission

giving cause to the infringement and the imposition of

administrative penalties and the suspension, revocation

or cancellation of the recognition.".

30. Article 32 of the principal Act shall be substituted by the Substitution of

article 32 of the

principal Act.

following new article

(1) The Authority shall give its reasons for

any decision taken in accordance with the Act.

(2) Subject to the rights of the appellant in an

appeal filed before the Tribunal in accordance with the

Act, the notification of a decision taken by the Authority

in accordance with the Act shall, if no such appeal has

been filed in terms of the law, and upon the service of a

judicial act on the person indicated in the notice,

constitute an executive title for all effects and purposes

of Title VII of Part I of Book Second of the Code of

Organization and Civil Procedure.

(3) Notwithstanding the provisions of any other

law, no precautionary warrant or order shall be issued

by any court restraining the Authority from taking any

measure under the Act, or under any regulations issued

hereunder or any other law.

(4) Unless otherwise provided for by law

decisions taken by the Authority shall only be

suspended or reversed by the competent Court or

Tribunal, as prescribed in terms of this Act.".

31. Article 33 of the principal Act shall be deleted.

32. Part VII of the principal Act shall be deleted.

Article 39 of the principal Act shall be deleted.

Article 40 of the principal Act shall be amended as follows

(a) sub-article (1) thereof shall be amended by the

following

(i) in paragraph (a) thereof, the words "any

premises other than a place of residence," shall be

substituted by the words "any premises";

(ii) in paragraph (e) thereof, the words "innovative

technology arrangement" shall be substituted by the word

"matter";

(iii) in the proviso to paragraph (f) thereof, the

words "modification of the use of any such apparatus."

shall be substituted by the words "modification of the use

of any such apparatus; and";

(iv) immediately after paragraph (f) thereof, as

amended, there shall be added the following new

paragraph

"(g) investigate any suspected breach of any

obligations arising under the Act or any other special

law which the Authority is entitled to administer or

enforce or any European and, or international

legislation which is applicable in Malta

Provided that the Authority may initiate

investigations on its own initiative.";

(b)

sub-article (4) thereof shall be amended as follows

(i) the words "innovative technology arrangement"

shall be substituted by the words "innovative technology";

(ii) the words "regulatory functions of the

Authority" shall be substituted by the words "regulatory

functions of the Authority, including their representatives

and employees,";

(c) in paragraph (e) of sub-article (5) thereof,

immediately after the words "in the exercise of its functions

under" there shall be added the words "the Act or"; and

(d)

sub-article (6) thereof shall be deleted.

In sub-article (4) of article 41 of the principal Act the words Amendment of

"Minister or as may be required at law." shall be substituted by the article

principal Act.

words "Minister, or within the context of legal proceedings in court or

arbitration proceedings, or as may be required at law.".

Article 42 of the principal Act shall be amended by the Amendment of

article 42 of the

principal Act.

(a) the marginal note thereof shall be substituted by the

following new marginal note

"Administrative penalties.";

(b) sub-article (1) thereof shall be amended by the

following

(i)

the words "administrative fine" shall be

substituted by the words "administrative penalty";

(ii) in the first proviso thereof, the words "an

infringement is committed by an undertaking and the

Authority considers that such act or omission has

especially significant effects on the market to the detriment

of competitors and, or consumers, the specified amount

that may be imposed as an administrative fine" shall be

substituted by the words "an infringement is considered by

the Authority as having significant effects on the market to

the detriment of users, the stated amount that may be

imposed as an administrative penalty";

(iii) in the second proviso to sub-article (1) thereof,

the words "Provided further that any daily fine" shall be

substituted by the words "Provided further that any daily

administrative penalty";

(c) sub-article (2) thereof shall be substituted by the

following new sub-article

"(2) In determining the amount of an administrative

penalty, regard shall be had in particular to the nature and

the gravity of the infringement, its duration and its impact

on the market and on users."; and

(d)

sub-article (3) thereof shall be deleted.

Article 43 of the principal Act shall be amended as follows

(a) the marginal note thereof shall be substituted by the

following new marginal note

"Infringements."; and

(b) the words "Where an administrative infringement of

any provision of this Act" shall be substituted by the words

"Where an infringement of any provision of the Act".

Article 44 of the principal Act shall be amended as follows

(a) the marginal note thereof shall be substituted by the

following new marginal note

"Prescription for offences and infringements.";

(b) the words "to impose an administrative fine under

this Act" shall be substituted by the words "to impose an

administrative penalty under the Act";

(c) in the Maltese version only, the words "tkun

preskritta meta jiskadu sentejn minn meta jiġi allegat li jkun sar

ir-reat jew il-ksur amministrattiv" shall be substituted by the

words "għandhom jiġu preskritti bl-iskandenza ta’ sentejn mid-

data li fiha r-reat jew il-ksur ikunu allegatament twettqu jew

mid-data li l-Awtorità saret taf bl-allegat reat jew ksur"; and

(d) the words "the offence or administrative

infringement" shall be substituted by the words "the offence or

infringement".

In sub-article (1) of article 45 of the principal Act, the words Amendment of

"or in any law or regulations." shall be substituted by the words "or in article

principal Act.

any special law which the Authority is entitled to administer or enforce

or in any European Union and, or international legislation applicable

to Malta.".

Article 46 of the principal Act shall be amended as follows

Amendment of

article 46 of the

principal Act.

(a) the marginal note thereof shall be substituted by the

following new marginal note

"Appeals from decisions of the Authority other than

the imposition of administrative penalties.";

(b) in sub-article (1) thereof the words "innovative

technology services or innovative technology arrangements."

shall substituted by the words "innovative technology."; and

(c)

sub-article (4) thereof shall be deleted.

Article 47 of the principal Act shall be amended as follows

Amendment of

article 47 of the

principal Act.

(a) the marginal note thereof shall be substituted by the

following new marginal note

"Appeals against an administrative penalty imposed

by the Authority.";

(b) in sub-article (1) thereof the words "administrative

fines" shall be substituted by the words "administrative

penalties";

(c) in sub-article (2) thereof the words "administrative

fine" shall be substituted by the words "administrative penalty";

(d)

in sub-article (3) thereof the words "administrative

fine as aforesaid unless it results to it that such fine" shall be

substituted by the words "administrative penalty as aforesaid

unless it results to it that such penalty";

(e)

sub-article (7) thereof shall be deleted.

The marginal note to article 48 of the principal Act shall be

substituted by the following new marginal note

"Decisions of the Administrative Review Tribunal.".

In sub-article (1) of article 49 of the principal Act the words

"and in any case shall deliver" shall be substituted by the words "and

in any case to deliver".

Immediately after article 49 of the principal Act there shall be

added the following new article

Any party, who feels aggrieved by a decision of

the Tribunal, may on a point of law and, or of fact appeal

to the Court of Appeal in accordance with article 22 of

the Administrative Justice Act.".

45. In paragraph (c) of sub-article (2) of article 50 of the

principal Act the words "the innovative technology services or

innovative technology arrangements" shall be substituted by the words

"innovative technology".

46. Immediately after article 50 of the principal Act, as amended,

there shall be added the following new article

In cases where the Tribunal or the Court of

Appeal, as the case may be, after having upheld an

application to suspend an administrative penalty

imposed by the Authority pending proceedings, decides

that the administrative penalty is due, such

administrative penalty shall be due together with any

interests accrued thereon as from the date specified by

the Authority for payment, including the period during

which the payment of the said administrative penalty

was suspended.".

47. Paragraph (e) of article 51 of the principal Act shall be

substituted by the following new paragraph

"(e) in any case that the Authority deems it necessary to

send the notice by means of electronic mail, to the electronic

mail address provided by the addressee to the Authority,

provided that the notice shall not be deemed as delivered if the

Authority receives an automated electronic mail delivery failure

message, indicating that the electronic mail was not delivered

Provided that the provisions of this paragraph shall

not apply to the service of documents filed before the Tribunal or

any Court.".

48. Sub-article (1) of article 52 of the principal Act shall be Amendment of

article 52 of the

substituted by the following new sub-article

principal Act.

"(1) When the Authority wants to sue for the recovery of

a debt due to the Authority under the Act or any other special law

which it is entitled to administer or enforce or under European

Union and, or international legislation applicable to Malta, the

Chairperson or the Chief Executive Officer or an officer of the

Authority duly authorised by the Authority to act on its behalf

may make a declaration on oath before the registrar of the

Courts, a Judge or a Magistrate wherein he specifies the nature

of the debt and the details of the debtor and confirms that the

debt is due.".

49. Article 53 of the principal Act shall be amended as follows

Amendment of

article 53 of the

principal Act.

(a)

sub-article (1) thereof shall be amended as follows

(i) in the Maltese version only, the words "l-effett

li -" shall be substituted by the words "l-effett li:";

(ii) paragraphs (a), (b) and (c) thereof shall be

substituted by the following new paragraphs

"(a) any innovative technology has the

recognition of the Authority, if this is not the case;

(b) any activity carried out by any person or

provided by or on an innovative technology has the

recognition or is conducted with the co-operation or

assistance of the Authority, if this is not the case; or

(c) any activity is being carried out in, or

from Malta in accordance with the regulatory

framework applicable to innovative technology when

the relevant product, solution or service is not

recognised by the Authority;";

(b)

sub-article (2) thereof shall be amended as follows

(i)

the

words

"an

innovative

technology

arrangement or service." shall be substituted by the words

"an innovative technology."; and

(ii) in the Maltese version only, the word "għarfien"

shall be substituted by the word "rikonoxximent";

(c) sub-article (3) thereof shall be substituted by the

following new sub-article

"(3) It shall be incumbent on the issuer of an

advertisement to expressly state in such advertisement that

the product, solution or service does not enjoy recognition

by the Authority and shall not give the contrary impression

under any circumstances if

(a) an innovative technology is being

administered and operated in or from Malta, or is

being provided in or from Malta;

(b) reference is made to such fact in an

advertisement; and

(c) the product, solution or service is not

recognised by the Authority in any form, as the case

may be.";

(d) in sub-article (4) thereof, the words "arrangement or

service" shall be substituted by the words "innovative

technology."; and

(e) in sub-article (5) thereof the words "any innovative

technology arrangement or provider of a service" shall be

substituted by the words " any innovative technology".

50. Article 54 of the principal Act shall be deleted.

Part X of the principal Act shall be deleted.

Article 58 of the principal Act shall be amended as follows

(a) sub-article (1) thereof shall be substituted by the

following new sub-article

"(1) The Minister may, without prejudice to the

powers of the Authority, and acting on the advice of the

Authority make regulations to give fuller effect to the

provisions of the Act, or to prescribe anything that is to be

or which may be prescribed in terms of the Act, any special

law which the Authority is entitled to administer or enforce

or any European Union and, or international legislation

which is applicable to Malta or any other regulatory

instrument and to provide for any matter consequential,

incidental to or connected therewith.";

(b)

sub-article (2) thereof shall be amended as follows

(i) paragraph (a) thereof shall be substituted by the

following new paragraphs

"(a) (i) define and empower the Authority

to define products, solutions and services that may be

regulated under the Act;

(ii)

regulate recognition processes in

accordance with the Act or any other special law

which the Authority is entitled to administer or

enforce or any European Union and, or international

legislation applicable to Malta; and the overall

requirements and conditions for such recognitions,

their grant, amendment, renewal, suspension,

revocation and termination and other similar actions

and to further empower the Authority to lay down

any such requirements and conditions;";

(ii) paragraph (b) thereof shall be substituted by the

following new paragraph

"(b) empower the Authority to regulate and

issue recognition to persons engaged in activities

falling within the competence of the Authority, the

Act or any other special law which the Authority has

the power to administer or enforce or any European

Union and, or international legislation, and all

matters relating thereto, including the qualifications

and elements to provide innovative technology as

well as the exemption of certain persons or categories

of persons from any or all of the requirements for

recognition;";

(iii) paragraph (d) thereof shall be substituted by the

following new paragraph

"(d) provide for any administrative penalties

that may be imposed by the Authority for any breach

of the provisions of the Act or any other special law

which the Authority is entitled to administer or

enforce or any European Union and, or international

legislation applicable to Malta;";

(iv) in paragraph (e)

thereof

the

word

"arrangements" shall be deleted;

(v) in paragraph (f) thereof the words "in relation

to the recognition of any innovative technology

arrangements or services under the provisions of the Act or

any special law which the Authority is entitled to

administer or enforce" shall be deleted;

(vi) in paragraph (g) thereof, the words "lay down

rules" shall be substituted by the words "lay down rules,

provide for and clarify the powers of the Authority";

(vii) paragraph (h) thereof shall be substituted by the

following new paragraph

"(h) amend, repeal, add to and, or vary any of

the Schedules to the Act and any regulations made

thereunder;";

(viii) paragraphs (i), (j), (k), (l), (m) and (n) thereof

shall be substituted by the following new paragraphs

"(i) establish rules and empower the

Authority to prescribe rules and to achieve the

purposes of the Act, and the effective administration

of the Act and, or any other special law which the

Authority is empowered to administer or enforce or

any European Union and, or international legislation

having effect in Malta;

(j) establish rules and empower the

Authority to prescribe rules for the mutual

recognition of recognitions issued by other national,

foreign or international authorities or bodies;

(k) issue further guidance and empower the

Authority to issue further guidance regarding the

form, accessibility and minimum contents of

information that shall be made available to users of

innovative technology;

(l) define and empower the Authority to

define different levels of recognition that may be

obtained in relation to innovative technology;

(m) further

regulate

recognitions

of

innovative technology;

(n) further regulate the recognition of

innovative technology service providers, including

the level of independence and other qualities, if any,

that are required for the carrying out of their

functions and the definition of such terms;";

(ix) immediately after paragraph (n) thereof, as

substituted, there shall be added the following new

paragraphs

"(o) define the criteria for determining

whether the systems and security access protocols of

applicants or recognition holders, as applicable, meet

or are maintained to the appropriate international

standards that may be established from time to time;

(p) prescribe rules for the notification of any

activities in or from Malta, or relating to innovative

technology which are accessible through the website

of the Authority, including when the innovative

technology already has the recognition in another

country;

(q) establish the circumstances and empower

the Authority to establish the circumstances in which

any person involved in connection with a recognition

holder, including any service provider is obliged to

communicate information to the Authority, prescribe

regulations governing the disclosure of information

by service providers and establish supervisory and

disciplinary procedures for service providers in

respect of their duties;

(r) extend any provisions of the Act,

including but not limited to, the right to an effective

judicial remedy to any form of innovative

technology;

(s)

by regulations made under the Act amend

any Schedule made under the Act;

(t) clarify by means of guidelines any

definition in sub-article (1) of article 2;

(u) empower and designate the Authority as a

competent authority and, or supervisory authority

and, or market surveillance authority in relation to

innovative technology, data or any other area, as may

be prescribed by the Minister;

(v) grant to the Authority the power to issue

recognitions, create processes and structures,

facilitate and generate data sharing by natural or legal

persons and the public sector; and

(w) prescribe fees in consultation with the

Minister responsible for finance."; and

(c) sub-articles (3) and (4) thereof shall be substituted by

the following new sub-articles

"(3) Regulations made under this article may be

made subject to such exemptions or conditions as may be

specified therein, may make different provision for

different cases, circumstances or purposes and may give to

the Authority such powers of adaptation of the regulations

as may also be so specified.

(4) Where regulations have been made in terms of

this article, the Authority may issue guidelines for the

better carrying out and to better implement the provisions

of such regulations.";

(d) in sub-article (5) thereof, the words "arrangements

and innovative technology services providers" shall be deleted;

(e) in sub-article (6) thereof, the words "consistent with

innovative technology arrangements in order to achieve the best

outcomes and ecosystem for the use of such innovative

technology arrangements." shall be substituted by the words

"consistent with innovative technology in order to achieve the

best outcomes and ecosystem for the use of such innovative

technology.".

The First Schedule to the principal Act shall be substituted by

the following new Schedule

"FIRST SCHEDULE

(article 2)

Innovative Technology

(a)

artificial intelligence;

(b)

"distributed ledger technology" and "decentralised ledger

technology (DLT)";

(c)

internet of things.".

The Second Schedule to the principal Act shall be deleted.

Deletion of the

Second

Schedule to the

principal Act.

The provisions of the Malta Digital Innovation Authority Act Transitory

as applicable prior to the entry into force of the Malta Digital provisions.

Innovation Authority (Amendment) Act, 2024 shall continue to apply Act

2024. to those recognitions, authorisations, certifications and registrations

issued before the entry into force of Malta Digital Innovation

Authority (Amendment) Act, 2024 and such recognitions,

authorisations, certifications and registrations shall remain valid until

the expiry, withdrawal or revocation thereof

Provided that any renewals or re-applications of existing

recognitions, authorisations, certifications and registrations granted

after the coming into force of Malta Digital Innovation Authority Act

2024. (Amendment) Act, 2024 shall be subject to and shall be regulated by

the said Malta Digital Innovation Authority (Amendment) Act, 2024.

(1) The Innovative Technology Arrangements and Services Repeal and

Act and the Innovative Technology Arrangements and Services (Fees) savings

transitory

Regulations are hereby repealed without prejudice to anything done or provisions.

omitted to be done thereunder.

(2) Upon the coming into force of the Innovative Technology L.N. 132 of

Arrangements and Services (ITAS) Certification Regulations, 2024, 2024.

the Innovative Technology Arrangement and Services Act and any

regulations made thereunder as applicable before the coming into force

of the Malta Digital Innovation Authority (Amendment) Act, 2024, Act

2024. shall continue to apply solely in relation to

(a) applications received before the coming into force of

the Innovative Technology Arrangements and Services (ITAS) L.N.

2024. Certification Regulations, 2024;

(b) recognitions, authorisations, certifications and

registrations issued before the coming into force of the

Innovative Technology Arrangements and Services (ITAS)

2024. Certification

Regulations,

which

recognitions,

authorisations, certifications and registrations shall retain their

validity until their expiry, withdrawal or revocation and the

Innovative Technology Arrangement and Services Act and any

regulations made thereunder applicable before the coming into

force of the Innovative Technology Arrangements and Services

(ITAS) Certification Regulations, 2024 shall apply to such

recognitions, authorisations, certifications and registrations

already issued

Provided that any renewals or re-applications of any

recognitions, authorisations, certifications and registrations

occurring after the coming into force of the Innovative

2024. Technology Arrangements and Services (ITAS) Certification

Regulations, 2024 shall be subject to and regulated by the said

Innovative Technology Arrangements and Services (ITAS)

Certification Regulations, 2024.

PART II

CONSEQUENTIAL AMENDMENT

In the Second Schedule to the Administrative Justice Act, in

the item "Malta Digital Innovation Authority Act Cap. 591 Superior

Competence" the words "Superior Competence" shall be substituted

by the words "Inferior Competence".

Passed by the House of Representatives at Sitting No. 245 of the

11th June, 2024.

ANĠLU FARRUGIA

Speaker

ELEANOR SCERRI

Clerk of the House of Representatives

€4.05