News
31.05.2016

Liberalization of rules of business and regulatory authority cooperation is on the agenda of the Verkhovna Rada

Thus, it is planned to consider the Draft Law of Ukraine “On Amendments to the Law of Ukraine “On Basic Principles of State Supervision (Control) in the Sphere of Economic Activity” as to the liberalization of the state control system” #2418a in the second reading this week.

The Better Regulation Delivery Office (BRDO) participated in drafting amendments to the rules of business and regulatory authority cooperation, including to the aforementioned draft law.

BRDO experts believe that the adoption of this draft law will significantly improve the domestic business environment and help business entities organize their activities with more predictable and transparent regulation.

“Establishing clear inspection rules is a real reformist step in building a civilized system of state control,” the head of the BRDO ‘Control and Supervision’ sector Volodymyr Holovatenko commented on this draft law.

In such a manner, according to the draft law, inspections will be carried out by a single procedure and this Law shall apply to the implementation of following measures: monitoring performed by state fiscal services, control over compliance with the nuclear safety requirements, control in the field of civil aviation, supervision of the labor and employment law implementation, state architectural and construction control (supervision).

It is also planned to reduce the frequency of regular inspections of high-risk business entities – these entities will be inspected every 2 years.

In addition, a certain public responsibility of the regulatory agency is introduced – if it doesn’t publish a unified form of the inspection protocol with a list of points to be inspected, it won’t be permitted to conduct this inspection.

If the draft law is adopted, an integrated automated system of state supervision (control) will be set up to systematize the information on inspections. It will contain information on: the assessed degree of risk for each business entity; agencies conducting these inspections; grounds to carry out unscheduled inspections of the business entity; violations that should be addressed and others. This will significantly reduce the possibilities of manipulating the inspection results and help reduce corruption risks.

We should also point out the innovation providing for extending the scope of this draft law to cover the local government administrations. They will conduct inspections just like almost all regulatory agencies as prescribed by the Law.