Reform objective
To reduce the burden on scrupulous business owners during state supervision (control) and introduce additional tools to ensure citizens’ rights to a safe environment.
Mechanism
Increasing transparency of inspections, digitalization of the interaction between supervisory authorities and businesses, simplifying and improving a process of appealing against illegal actions of inspectors, and eliminating unfair schemes of avoiding legal inspections.
Instruments
Draft Law “On Basic Principles of State Supervision (Control)” (amended Law #877 “On Basic Principles of State Supervision (Control) in the Sphere of Economic Activity).
Proposals
To make the interaction between businesses and government authorities more transparent and predictable. In particular, a public rating of enterprises depending on their risk level will be calculated for this purpose. The score earned by a company will indicate the maximum possible frequency and duration of inspections. Companies will have the right to file a complaint in case of disagreement with the assigned rating and risk level.
The changes will also apply to the time limits for scheduled inspections. The draft law proposes an approach, under which the maximum inspection duration will depend on the risk level: 5 days for low-risk companies, 10 – for medium-risk companies, and 15 – for high-risk enterprises. However, restrictions on the maximum duration of inspections of small and micro enterprises are still valid: regardless of their risk level, they can be inspected on a scheduled basis for no more than 5 days.
The draft law introduces the possibility for all participants (both businesses and inspectors) to start using a unified electronic system of interaction. The document expands the information list that the supervisory authority should enter into its e-cabinet on the Inspection Portal. This allows automating a larger number of processes and providing access to a wider inspection status data range.
For the safety of citizens, especially the company’s employees, an insurance concept is introduced. The frequency of state inspections will be reduced at enterprises with an insurance policy for their activities.
Why is this essential for Ukraine?
The changes proposed by the amended Law will balance business, citizens, and supervisory authorities’ interests, digitalize and simplify processes, and provide tools to appeal against supervisory authorities’ actions and protect end consumers. The draft law has been already published for discussion.