Chapter 591

[ CAP. 591. MALTA DIGITAL INNOVATION AUTHORITY CHAPTER 591 MALTA DIGITAL INNOVATION AUTHORITY 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. Substituted by: XIX.2024.4. 15th July, 2018 ACT XXXI of 2018., as amended by Act XIX of 2024. ARRANGEMENT OF THE ACT Part I Part II Part III Part IV Part V Part VI Part VII Part VIII Part IX Part X Part XI First Schedule Second Schedule Articles Preliminary 1–2 Guiding Principles 3–4 Establishment, Functions and 5 – 10 Conduct of Affairs of the Authority Officers and Employees of 11 – 12 the Authority Financial Provisions 13 – 25 Principles relating to 26 - 33 Recognition Deleted by Act No. XIX of 34 - 38 2024 Enforcement and Sanctions 39 - 44 Administrative Review 45 - 54 Tribunal Deleted by Act No. XIX of 55 - 57 2024 Miscellaneous Provisions 58 – 59 Innovative Technology Deleted by Act No. XIX of 2024 Substituted by: XIX.2024.5. PART I Preliminary 1. The short title of this Act is the Malta Digital Innovation Authority Act. 2. (1) In this Act, unless the context otherwise 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; Short title. Interpretation. Substituted by: XIX.2024.6. Cap. 591. 1 2 [ CAP. 591. MALTA DIGITAL INNOVATION AUTHORITY "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 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;  Cap. 490. "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. MALTA DIGITAL INNOVATION AUTHORITY [ CAP. 591. 3 (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 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. PART II Guiding Principles 3. The Government shall, through the establishment of the Authority in Malta, seek the progress of the innovative technology sect or in M alta an d th e fo steri ng of i nno vat ive t echno log y 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 mediumsized 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 Promotion and development of the Authority’s interests. Substituted by: XIX.2024.7. 4 [ CAP. 591. MALTA DIGITAL INNOVATION AUTHORITY time to time. Main policies and objectives. Amended by: XIX.2024.8. 4. (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. (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 MALTA DIGITAL INNOVATION AUTHORITY [ CAP. 591. 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 5 6 [ CAP. 591. MALTA DIGITAL INNOVATION AUTHORITY technology; and (n) to promote security by design and security by default criteria with reference to innovative technology. (3) The Authority shall encourage the development of innovative technology in as wide a manner and for as many uses as possible so as to achieve its benefits in as many economic and social sectors as possible, including, but not limited to, in financial services, health and education, voluntary organisations, public administration, logistics, transport, sports and entertainment. (4) The Authority shall also encourage the development of regulatory processes in relation to innovative technology to support all national competent authorities regulating different sectors to better administer the laws entrusted to their administration for the public benefit. (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. PART III Establishment, Functions and Conduct of Affairs of the Authority Establishment and composition of the Malta Digital Innovation Authority. Amended by: XIX.2024.9. 5. (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. (2) The members of the Board shall be appointed by the MALTA DIGITAL INNOVATION AUTHORITY [ CAP. 591. Minister for a term of one year or for such longer period as may be specified in the instrument of appointment subject to a maximum of three years and the members so appointed may be re-appointed on the expiration of their term of office. (3) The Minister may designate one of the members of the Board other than the Chairperson as Deputy Chairperson and the member so designated shall have all the powers and perform all the functions of the Chairperson during the Chairperson’s absence or inability to act as Chairperson or during any vacancy in the office of Chairperson. (4) A person shall not be qualified to hold office as a member of the Board if he (a) is a Minister, Parliamentary Secretary or a member of the House of Representatives; or (b) is a judge or magistrate of the courts of justice; or (c) has a financial or other interest in any enterprise or activity which is likely to affect, in a general manner, the discharge of his functions as a member of the Board as a result of a conflict of interest: Provided that should any nominee to such a position declare a conflict of interest or potential conflict of interest based on a specific context only and provides full information, this may be reviewed by the Minister and the Board, and if the conflict of interest is not considered one which would disqualify the nominee, this disqualification shall not apply but it shall be the subject of a written guidance on the part of the Minister, and, or the Board which shall apply to the member for as long as such specific context subsists, and this without prejudice to sub-article (9); or (d) has been convicted of a criminal offence affecting public trust, or of theft or fraud, or of knowingly receiving property obtained by theft or fraud or of bribery or of money laundering, or of a criminal offence under any law, or is being investigated for such criminal offence. (5) Subject to the provisions of this article, the office of a member of the Board shall become vacant (a) at the expiration of his term of office; or (b) if any circumstances arise that, if he were not a member of the Board, would cause him to be disqualified for appointment as such. 7 8 [ CAP. 591. MALTA DIGITAL INNOVATION AUTHORITY (6) A member of the Board may only be removed from office by the Minister for any one or more of the following reasons: (a) if the member due to infirmity of mind or of body or for any other cause is effectively unable to continue to discharge his duties as a member; (b) if the behaviour or performance of the member brings into question his suitability or ability to continue as a member, in particular for behaviour that affects or may affect his reputation, independence or autonomy, or the reputation, independence or autonomy of the Authority; (c) if any member fails to perform his duties for a continuous period exceeding five (5) months without any valid justification. (7) If the Minister removes a member of the Board from office, such removal shall be made public by no later than the effective date of removal from office. At the same time, the Minister shall provide the member concerned with a statement of reasons for his removal, and the member shall have the right to request that the statement of reasons for his removal be made public, in which case the Minister shall publish such statement. (8) If a member resigns or if the office of a member of the Board is otherwise vacant or if a member is for any reason unable to perform the functions of his office, the Minister may appoint a person who is qualified to be appointed to be a member to be a temporary member of the Board; and any person so appointed shall cease to be such a member when a person has been appointed to fill the vacancy or, as the case may be, when the member who was unable to perform the functions of his office resumes those functions. (9) Any member of the Board who has any direct or indirect interest in any decision or contract made or proposed to be made by the Board, not being an interest which disqualifies such member from remaining a member, shall disclose the nature of his interest at the first meeting of the Board after the relevant facts have come to his knowledge; such disclosure shall then be recorded in the minutes of the Board, and the member having an interest as aforesaid shall withdraw from any meetings at which such decision or contract is discussed. Any such disclosure shall be communicated to the Minister without delay. Where the interest of the member is such as to disqualify him from remaining a member, he shall report the fact immediately to the Minister and tender his resignation. (10) Repealed by Act XIX.2024.9. MALTA DIGITAL INNOVATION AUTHORITY [ CAP. 591. 6. (1) It shall be the purpose of the Authority to address the development in or from Malta of innovative technology in order to achieve the policies and objectives outlined in article 4. (2) It shall be the duty of the Authority to exercise such supervisory and regulatory functions in the field of innovative technology in accordance with the powers of the Authority. (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 9 Purpose, functions and powers of the Authority. Amended by: XIX.2024.10. 10 [ CAP. 591. MALTA DIGITAL INNOVATION AUTHORITY in accordance with fair, transparent and nondiscriminatory 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; MALTA DIGITAL INNOVATION AUTHORITY [ CAP. 591. (i) keep under review all practices, operations and activities relating to any matter regulated by or under the Act or any other 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 sublicence 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 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 11 12 [ CAP. 591. MALTA DIGITAL INNOVATION AUTHORITY 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 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 MALTA DIGITAL INNOVATION AUTHORITY [ CAP. 591. 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 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 13 14 [ CAP. 591. MALTA DIGITAL INNOVATION AUTHORITY 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 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 MALTA DIGITAL INNOVATION AUTHORITY [ CAP. 591. 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 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. 15 16 [ CAP. 591. Enforcement powers.  Added by: XIX.2024.11. MALTA DIGITAL INNOVATION AUTHORITY (8) Repealed by Act XIX.2024.10. (9) Repealed by Act XIX.2024.10. 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 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 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 MALTA DIGITAL INNOVATION AUTHORITY [ CAP. 591. 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 subparagraph (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 on market surveillance and compliance of products and amending Directive 2004/42/EC and Regulations (EC) No. 765/2008 and (EU) No. 305/2011. 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 Conduct of the affairs of the Authority. Substituted by: XIX.2024.12. 17 18 [ CAP. 591. MALTA DIGITAL INNOVATION AUTHORITY Minister. (3) The day-to-day administration, recruitment, and organisation of the Authority, and the 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 MALTA DIGITAL INNOVATION AUTHORITY [ CAP. 591. 19 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. 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. Independence of the Authority and its relations with the Minister. Substituted by: XIX.2024.13. (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.  Cap. 601. 9. (1) The Authority shall be a body corporate having a distinct legal personality and shall be capable, subject to the provisions of this Act, of entering into contracts, of acquiring, holding and disposing of any kind of property for the purposes of its functions, of suing and being sued, and of doing all such things and entering into all such transactions as are incidental or conducive to the exercise or performance of its functions under this Act, including the lending or borrowing of money. Legal personality and representation of the Authority. Amended by: XIX.2024.14. (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. 20 [ CAP. 591. MALTA DIGITAL INNOVATION AUTHORITY (3) Any document purporting to be an instrument made or issued by the Authority and signed by the Chairperson or the Chief Executive Officer or such other member of the Board, or officer of the Authority as may, in accordance with sub-article (2), be vested by the Board with the legal and judicial representation of the Authority, shall be received in evidence and shall, until the contrary is proved, be deemed to be an instrument made or issued by the Authority. Meetings. Amended by: XIX.2024.15. 10. (1) The meetings of the Board shall be called by the Chairperson as often as may be necessary but at least once a month either on his own initiative or at the request of any two of the other members of the Board. (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. (3) Subject to the provisions of this Act the Board may regulate its own procedure. (4) Subject to the foregoing provisions of this article, no act or proceeding of the Authority shall be invalidated merely by reason of the existence of any vacancy among the members of the Board. (5) All acts done by any person acting in good faith as a member of the Board shall be valid as if he were a member notwithstanding that some defect in his appointment or qualification be afterwards discovered. No act or proceeding of the Authority shall be questioned on the ground of the contravention, by a member, of the provisions of article 5(9). PART IV Officers and Employees of the Authority Officers of the Authority. 11. Without prejudice to the other provisions of this Act, the Authority shall appoint and employ, at such remuneration and upon such terms and conditions as it may establish with the concurrence of the Minister, such officers and employees of the Authority as may from time to time be necessary for the due and efficient discharge of the functions of the Authority. Officers and employees deemed to be public employees and public officers. Cap. 595. Cap. 9. 12. All officers and employees of the Authority shall be deemed to be public employees within the meaning of the Public Administration Act and shall be considered to be public officers as defined in article 124 of the Constitution for the purposes of the Criminal Code or any other law. MALTA DIGITAL INNOVATION AUTHORITY [ CAP. 591. 21 PART V Financial Provisions 13. (1) Without prejudice to the following provisions of this article, the Authority shall so conduct its affairs so that the expenditure required for the proper performance of its functions shall, as far as practicable, be met out of its revenue. Authority to meet expenditure out of revenue. Amended by: XIX.2024.16. (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 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. (3) The Authority shall be paid by Government out of the Consolidated Fund such sums as Parliament may from time to time authorise to be appropriated to meet the costs of specified works to be continued or otherwise carried out by the Authority: Provided that any subvention received from Government shall be exempted from any liability for the payment of income tax and duty on documents under any law for the time being in force. (4) Any excess of revenue over expenditure shall, subject to such directives as the Minister, after consultation with the Minister responsible for finance may from time to time give, be applied by the Authority to the formation of reserve funds to be used for the purposes of the Authority; and without prejudice to the generality of the powers given to the Minister by this sub-article, any direction given by the Minister as aforesaid may order the transfer to the Government, or the application in such manner as may be specified in the direction, of any part of the fees, rates and other payments levied in accordance with sub-article (2) or any such excess as aforesaid. (5) Any funds of the Authority not immediately required to meet expenditure may be invested in such manner as may from time to time be approved by the Minister. 13A. The Authority shall be exempt from any liability for the payment of income tax, duty on documents and transfers, and customs and excise duty, under any law. Exemption from taxes. Added by: XIX.2024.17. 14. (1) For the purpose of carrying out any of its functions under this Act or any other law which the Authority is entitled to administer or enforce, the Authority may, with the approval in writing of the Minister given after consultation with the Minister responsible for finance, borrow or raise money in such manner, from such person, body or authority, and under such terms and conditions as the Minister, after consultation as aforesaid, may in writing approve. Power to borrow or raise capital. 22 [ CAP. 591. MALTA DIGITAL INNOVATION AUTHORITY (2) The Authority may also, from time to time, borrow, by way of overdraft or otherwise, such sums as it may require for carrying out its functions under this Act or any other law which the Authority is entitled to administer or enforce: Provided that for any amount in excess of one hundred and forty-four thousand euro (€144,000), there shall be required the approval of the Minister in writing. Advances from Government. 15. The Minister responsible for finance may, after consultation with the Minister, make advances to the Authority of such sums as he may agree to be required by the Authority for carrying out any of its functions under this Act or any other law which the Authority is entitled to administer or enforce, and may make such advances on such terms and conditions as he may, after consultation as aforesaid, deem appropriate. Any such advance may be made by the Minister responsible for finance out of the Consolidated Fund, and without further appropriation other than this Act, by warrant under his hand authorising the Accountant General to make such advance. Borrowing from Government. 16. (1) The Minister, after consultation with the Minister responsible for finance, may, for any requirements of the Authority of a capital nature, contract or raise loans, or incur liabilities, for such periods and on such terms and conditions as he may deem appropriate; and any sums due in respect of or in connection with any such loan or liability shall be a charge on the Consolidated Fund. (2) Notice of any loans, liabilities or advances made or incurred under the foregoing provisions of this article shall be given to the House of Representatives as soon as practicable. Estimates of the Authority. 17. (1) The Authority shall cause to be prepared in every financial year, and shall not later than three months after the end of each such year, adopt estimates of the income and expenditure of the Authority for the next following financial year: Provided that the estimates for the first financial year of the Authority shall be prepared and adopted within such time as the Minister may by notice in writing to the Authority specify. (2) In the preparation of such estimates the Authority shall take account of any funds and other monies that may be due to be paid to it out of the Consolidated Fund during the relevant financial year, whether by virtue of this Act or an appropriation Act or of any other law; and the Authority shall prepare the said estimates so as to ensure that the total revenues of the Authority are at least sufficient to meet all sums properly chargeable to its revenue account including, but without prejudice to the generality of that expression, depreciation. MALTA DIGITAL INNOVATION AUTHORITY [ CAP. 591. 23 (3) The estimates shall be made out in such form and shall contain such information and such comparison with previous years as the Minister responsible for finance may direct. (4) A copy of the estimates shall, upon their adoption by the Authority, be sent forthwith by the Authority to the Minister. (5) The Minister shall, at the earliest opportunity and not later than three months after he has received a copy of the estimates from the Authority, approve the same with or without amendment. 18. (1) No expenditure shall be made or incurred by the Authority unless it has been approved by the Minister as provided in article 17. (2) Expenditure to be according to approved estimates. Notwithstanding the provisions of sub-article (1) - (a) until the expiration of six months from the beginning of a financial year, or until the approval of the estimates for that year by the Minister, whichever is the earlier date, the Authority may make or incur expenditure for carrying out its functions under this Act or any other law which the Authority is entitled to administer or enforce not exceeding in the aggregate one-half of the amount approved by the Minister for the preceding financial year; (b) expenditure approved in respect of a head or sub- head of the estimates may, with the approval of the Minister, given after consultation with the Minister responsible for finance, be made or incurred in respect of another head or sub- head of the estimates; (c) in respect of the first financial year, the Authority may make or incur expenditure not exceeding in the aggregate such amounts as the Minister responsible for finance may, after consultation with the Minister, allow; (d) if in respect of any financial year it is found that the amount approved by the Minister is not sufficient or a need has arisen for expenditure for a purpose not provided for in the estimates, the Authority may adopt supplementary estimates for approval by the Minister and in any such case the provisions of this Act applicable to the estimates shall as near as practicable apply to the supplementary estimates. 19. The Minister shall, at the earliest opportunity and not later than three months after he has received a copy of the estimates and supplementary estimates of the Authority, or if at any time during that period the House of Representatives is not in session, within three months from the beginning of the next following session, cause such estimates to be laid on the Table of the House of Publication of approved estimates. 24 [ CAP. 591. MALTA DIGITAL INNOVATION AUTHORITY Representatives. Accounts and audit. Amended by: XIX.2024.18. 20. (1) The Authority shall cause to be kept proper accounts and other records in respect of its operations, and shall cause to be prepared a statement of accounts in respect of each financial year. (2) The accounts of the Authority shall be audited by an auditor or auditors to be appointed by the Authority: Provided that the Minister may, prior to approving the accounts, require the books and accounts of the Authority to be audited or examined by the Auditor General who shall for the purpose have the power to carry out such physical checking and other certifications as he may deem necessary. (3) The Authority shall, not later than three months after the end of each financial year, cause a copy of the statement of accounts duly audited to be transmitted to the Minister together with a copy of any report made by the auditors on that statement or on the accounts of the Authority. (4) The Minister shall, at the earliest opportunity and not later than three months after he has received a copy of every such statement and report, or if at any time during that period the House of Representatives is not in session, within three months from the beginning of the next following session, cause every such statement and report to be laid on the Table of the House of Representatives. Deposit of revenues and payment by the Authority. Amended by: XIX.2024.19. 21. (1) All monies accruing to the Authority shall be paid into a bank or banks appointed as bankers of the Authority by resolution of the Board. Such monies shall, as far as practicable, be paid into any such banks from day to day, except such sum as the Authority may authorise to be retained to meet petty disbursements and immediate cash payments. (2) All payments out of the funds of the Authority, other than petty disbursements not exceeding a sum fixed by the Authority, shall be made by such officer or officers of the Authority as the Authority shall appoint or designate for that purpose. (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. (4) The Authority shall also make provision with respect to (a) the manner in which and the officer or officers by whom payments are to be authorised or approved; MALTA DIGITAL INNOVATION AUTHORITY [ CAP. 591. 25 (b) the title of any account held with the bank or banks into which the monies of the Authority are to be paid, and the transfer of funds from one account to the other; (c) the method to be adopted in making payments out of funds of the Authority, and generally with respect to any matter which is relevant to the proper keeping and control of the accounts and books, and the control of the finance, of the Authority. 22. Repealed by Act XIX.2024.20. 23. The Authority shall, not later than three months after the end of each financial year, make and transmit to the Minister and to the Minister responsible for finance a report dealing generally with the activities of the Authority during that financial year and containing such information relating to the proceedings and policy of the Authority as either of the said Ministers may from time to time require. The Minister shall, at the earliest opportunity and not later than three months after he has received a copy of every such report, or if at any time during that period the House of Representatives is not in session, within three months from the beginning of the next following session, cause a copy of every such report to be laid on the Table of the House of Representatives. 24. Repealed by Act XIX.2024.21. Contracts of supply or works. Annual Report. Money laundering. 25. The Authority and any Board member, officer or employee of the Authority, and any other person appointed to perform a function under this Act or any other law which the Authority is entitled to administer or enforce, or under any rules or regulations made thereunder, shall not be liable in damages for anything done or omitted to be done in the discharge or purported discharge of any functions 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. Exclusion of liability. Amended by: XIX.2024.22. PART VI Substituted by: XIX.2024.23. Principles relating to Recognition 26. (1) The Authority shall establish and prescribe rules, in the form of binding documentation such as guidelines, in relation to the forms of recognition it shall grant or issue and in relation to recognition programmes, initiatives and schemes it shall administer in Conditions for the issue of recognitions. Substituted by: XIX.2024.24. 26 [ CAP. 591. MALTA DIGITAL INNOVATION AUTHORITY 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 …