REGULATORY IMPACT ASSESSMENT AND ALIGNMENT OF THE LEGISLATION IN THE REPUBLIC OF CROATIA

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REGULATORY IMPACT ASSESSMENT AND ALIGNMENT OF THE
LEGISLATION IN THE REPUBLIC OF CROATIA

• Tamara Obradovic Mazal, LL.M.
• Assistant Minister for Foreign Affairs and
  European Integration and
• Secretary of the Negotiating Team
• E-mail tamara.obradovic_at_mvei.hr

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OVERVIEW OF THE PRESENTATION

• Legislative procedure in the Republic of Croatia
• Analysis of the impact of regulations
• Alignment of the Croatian legislation with the
• acquis communautaire
• Instruments of alignment
• National Programme for the Integration of
  the Republic of Croatia
• into the EU
• Assessment of financial impact in the preparation
  of
• negotiating positions
• HITROREZ

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LEGISLATIVE PROCEDURE IN CROATIA

• Initiative
• All natural and legal persons may take the
  initiative to launch a law enactment procedure.
• The initiative is forwarded to the person / body
  authorised to launch the procedure.
• Proposals
• Members of the Croatian Parliament, Clubs of
  Members
• Working bodies of the Croatian Parliament, and
• Government of the Republic of Croatia.

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LEGISLATIVE PROCEDURE IN CROATIA

• Drafting the proposal of an act
• If an act is proposed by the Government of the
  Republic of Croatia, its draft proposal is
  prepared by the competent ministries
• The Draft is forwarded for opinion (Standing
  Orders of the Croatian Government) to
• Legislation Office,
• Ministry of Finance,
• Ministry of Foreign Affairs and European
  Integration, and
• Other bodies of state administration competent
  for the issues regulated by the proposal
  concerned.
• The proposal is discussed by expert working
  groups of the coordinating committees of the
  Government of the Republic of Croatia and by the
  competent coordinating committee of the
  Government of the Republic of Croatia.

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LEGISLATIVE PROCEDURE IN CROATIA

• Passing an act
• The Act is generally adopted in the regular
  procedure through two readings
• Before discussion at a session of the Parliament,
  the working bodies must hold a discussion on the
  proposals of the act
• The working bodies of the Croatian Parliament are
  its committees and commissions, established
  pursuant to the Standing Orders of the Croatian
  Parliament.

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LEGISLATIVE PROCEDURE IN CROATIA

• First reading of the act
• The first reading includes an introductory
  presentation by the sponsor and a discussion,
  which is followed by the adoption of conclusions
  concerning the submitted proposals, which are
  then forwarded to the sponsor.
• The sponsor must submit the final proposal of the
  act to the Croatian Parliament within 6 months of
  the date of acceptance of the proposal of the act
  in the first reading
• Second reading of the act
• The second reading of the act is the second part
  of the law enactment procedure. It includes a
  discussion about the text of the final proposal,
  the standpoints of the working bodies, amendments
  to the text of the act, and the adoption of the
  act.
• Third reading of the act
• Exceptionally, in the enactment procedure, the
  act may be sent for a third reading (when a large
  number of amendments to the final proposal of the
  act is submitted or when the amendments are such
  in nature that they materially change the content
  of the final proposal of the act).

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LEGISLATIVE PROCEDURE IN CROATIA

• Passing the act in summary procedure
• Exceptionally, an act may be adopted in the
  summary procedure, but only if that is required
  by the interests of national defence and other
  particularly justified state reasons, that is,
  when that is necessary to prevent or remedy major
  disturbances in the economy.
• The final proposal of the act must be submitted
  with the petition to enact the law under summary
  procedures, and it must include everything that
  the proposal of the act includes, except that
  instead of the text of the proposal of the act,
  the text of the final proposal of the act is
  enclosed.
• Acts that must be aligned with the legislation of
  the European Union, if requested by the sponsor,
  are adopted in the summary procedure (Article 161
  of the Standing Orders).

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LEGISLATIVE PROCEDURE IN CROATIA

• Passing an act when the sponsor is not the
  Government of the Republic of Croatia
• The procedure of passing the act is the same,
  except that the president of the Croatian
  Parliament forwards the proposal simultaneously
  to the working bodies of the Croatian Parliament
  and the Prime Minister to get their opinion
• The proposal goes through a similar procedure,
  that is, the competent ministry, the expert
  working group of the competent coordinating
  committee, the coordinating committee of the
  Government of the Republic of Croatia, the
  Government of the Republic of Croatia, all issue
  their opinions about the proposal.

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ANALYSIS OF THE IMPACT OF REGULATIONS IN THE
REPUBLIC OF CROATIA

• Content of the proposal of an act (Article
  132, Standing Orders of the Croatian Parliament)
• Constitutional grounds for passing the act,
• Assessment of the status and fundamental issues
  to be regulated by the act and the impact of the
  passed act,
• An assessment and the sources of funds necessary
  to implement the act,
• The text of the proposal of the act, with its
  interpretation and explanation,
• The text of the provisions of the valid act to be
  amended, if that is what is proposed.
• In addition to the proposal of the act, the
  sponsor may also submit other relevant
  documentation, particularly expert opinions,
  ratified international treaties and other acts
  serving to explain the grounds for the proposal."
•  
• Elements that are underlined are relevant
  and purposeful in terms of an analysis of the
  impact of the application of the regulation.

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ANALYSIS OF THE IMPACT OF REGULATIONS IN THE
REPUBLIC OF CROATIA

• Assessing the financial impact of regulations
• On 20 May 2005 The Government of the Republic
  of Croatia adopted the Decision concerning the
  form of standard methodology for assessing
  financial impact
• The state administration bodies, in addition to
  the proposals of regulations and other
  legislation adopted by the Government, and the
  proposals of acts and other legislation proposed
  by the Government, must submit the Form on the
  assessment of financial impact

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ANALYSIS OF THE IMPACT OF REGULATIONS IN THE
REPUBLIC OF CROATIA

• Content of the form
• Basic data about the sponsor and the proposal
• Connection between the draft legislation and the
  State Budget
• Statement of financial impact on the State Budget
  and other budgets
• Impact on employment
• Statement on the sources of funding
• Potential liabilities for the State Budget
• Indicators of success
• Explanation and response of the sponsor
• Recommendation and a statement on the proposal of
  the regulation by the Ministry of Finance, and
• Dates on which the Form was sent and received.

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ALIGNING THE CROATIAN LEGISLATION WITH THE
ACQUIS COMMUNAUTAIRE

• Article 69 of the Agreement (the introductory
  article of Title VI Approximation of Laws, Law
  Enforcement and Competition Rules) states
• "The Parties recognise the importance of the
  approximation of Croatia's existing legislation
  to that of the Community. Croatia shall endeavour
  to ensure that its existing laws and future
  legislation will be gradually made compatible
  with the Community acquis.

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ALIGNING THE CROATIAN LEGISLATION WITH THE ACQUIS
COMMUNAUTAIRE
PHASE 1
Main areas of the internal market
PHASE 2
Trade and related issues
PHASE 3
Other parts of the acquis from the SAA
6 transitional years
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Instruments for aligning the legislation

• Standing Orders of the Croatian Parliament
• Article 136, mark P.Z.E.
• Article 161, summary procedure

• Instruments for aligning the legislation
• Statement of Compatibility
• Table of Concordance of the Provisions of Draft
  Legislation with the Acquis Communautaire

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Instruments for aligning the legislation

• Decision on the measures in the procedure of
  alignment of the legislation of the Republic of
  Croatia with the acquis communautaire of 19 July
  2001
• As of 1 December 2001, in the preparation of
  draft regulations aligning the legislation, the
  state administration bodies must complete the
  Statement of Compatibility and prepare the Table
  of Concordance of the Provisions of Draft
  Legislation with the Acquis Communautaire
• The completed Statement of Compatibility and the
  prepared Table of Concordance of the Provisions
  of Draft Legislation with the Acquis
  Communautaire must be forwarded to the Ministry
  of Foreign Affairs and European Integration for
  review and verification of their alignment

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Instruments for aligning the legislation

• Decision of the Croatian Government of 25
  February 2004 on the instruments for the
  alignment of the legislation of the Republic of
  Croatia with the acquis communautaire and legal
  acts of the Council of Europe
• Priorities in the process of aligning the
  legislation of the Republic of Croatia are based
  on the SAA, and are reflected in the one-year
  National Programme for the Integration of the
  Republic of Croatia into the EU
• The obligation to complete the Statement and the
  Table of Concordance has been expanded to the
  making of subordinate legislation, serving to
  achieve alignment with the acquis communautaire
• The competent authority has been extended an
  opportunity to indicate, next to the draft
  legislation in the Statement of Compatibility,
  the need to prepare a consolidated version

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• Decision of the Croatian Government on the
  instruments for aligning the legislation
• It states that any (draft) proposal of the
  regulation aligning the legislation which is not
  accompanied by a completed Statement of
  Compatibility and the prepared Table of
  Concordance will not be sent for further
  legislative procedure, but will be returned to
  the competent authority for further work
• It binds the state administration bodies to
  involve the Ministry of Foreign Affairs and
  European Integration in the very initial phases
  of preparing the (draft) proposal of the
  regulation aligning the legislation
• It states that the Ministry of Foreign Affairs
  and European Integration provides all technical
  and expert assistance that is needed

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Instruments for aligning the legislation

• Table of Concordance of the Provisions of
  (Draft) Legislation with the Acquis Communautaire
  / Legal Acts of the Council of Europe
• Statements as to the alignment of (draft)
  legislation with the provisions of the
  Stabilisation and Association Agreement between
  the European Communities and its Member States
  and the Republic of Croatia
• Statements as to the alignment of (draft)
  legislation with the acquis communautaire and the
  legal acts of the Council of Europe
• Data relevant to the process of aligning the
  legislation (participation of consultants in the
  making of (draft) legislation and their opinion
  on the alignment, translation of the sources of
  EU law to Croatian, translation of (draft)
  legislation to one of the official languages of
  the EU)

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Instruments for aligning the legislation

• Table of Concordance of the Provisions of Draft
  Legislation
• A comparative listing of the provisions of
  (draft) legislation and the provisions of EU
  legislation
• An indication of their alignment
• A presentation of the reasons for their partial
  alignment or absence of alignment
• An indication of the foreseen date to achieve
  complete alignment
• Based on the prepared Table of Concordance, the
  competent authority completes the part of the
  Statement relating to the alignment of (draft)
  legislation with the acquis communautaire and the
  legal acts of the Council of Europe

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NPIEU 2006
Political criteria
Economic criteria
Legal adjustments
Administrative capacity building
Table Administrative Capacity Building

• Adopting the acquis communautaire (Annex A)
• Priorities
• Directives/acquis communautaire

Table of planned budgetary funds and foreign
assistance funds Annex B
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NPIEU 2007
Political criteria
Economic criteria
Legal adjustments Administrative capacity building

• Adopting the acquis communautaire and relevant
  implementing measures (Annex A)
• Priorities
• Directives/acquis communautaire

Table of planned budgetary funds and foreign
assistance funds Annex B
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a) Legislative measures and the related
sublegislation
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ASSESSMENT OF FINANCIAL IMPACT IN THE PREPARATION
OF NEGOTIATING POSITIONS

• Amendments to the Decision on the procedure of
  making and adopting negotiating positions of the
  Republic of Croatia in the negotiations on
  accession of the Republic of Croatia to the
  European Union
• Adopted by the Croatian Government on 20 April
  2006
• Statement on the assessment of financial impact
  on the Form for the assessment of financial
  impact of the alignment of Croatian legislation
  with the acquis communautaire (Form PFU EU)

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ASSESSMENT OF FINANCIAL IMPACT IN THE PREPARATION
OF NEGOTIATING POSITIONS

• Working groups for the preparation of
  negotiations give a statement on the assessment
  of financial impact by chapters for
• New programmes, strategies, action plans
• Amendments to programmes, strategies, action
  plans
• New legislation and subordinate legislation
• Amendments to legislation and subordinate
  legislation
• Establishment of new agencies or similar
  organisations
• Financial participation for inclusion in certain
  programmes
• Other activities

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ALIGNING THE CROATIAN LEGISLATION WITH THE ACQUIS
COMMUNAUTAIRE

• Procedure for making and adopting the financial
  impact assessment
• The form PFU EU is forwarded for opinion to the
  Ministry of Finance and other state
  administration bodies competent for the issues
  covered by the chapter, together with the working
  draft of the proposed negotiating position
• Within seven days of receiving the Form PFU EU,
  the Ministry of Finance forwards its opinion on
  the Form to the member of the Negotiating Team in
  charge of the chapter concerned
• The working group then makes the draft proposal
  of the negotiating position and, together with
  the Form PFU EU, which includes the opinion of
  the Ministry of Finance, forwards it to the
  Negotiating Team
• The Negotiating Team reviews and adopts, in
  addition to the draft proposal of the negotiating
  position, the statement on assessment of
  financial impact given on the Form PFU EU, and
  forwards them to the Coordinating Committee

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HITROREZ

• 28 September 2006 Decision establishing the
  Special Unit for HITROREZ as a working body of
  the Government of the Republic of Croatia
• Task to examine, review and analyse the valid
  regulations, to establish the existence of
  normative and administrative obstacles, and to
  propose measures for their simplification or
  elimination
• Aim to eliminate and simplify the existing
  procedures laid down in various regulations in
  order to boost direct domestic and foreign
  investments through the introduction of a
  friendly regulatory environment and through the
  mitigation of corruption

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HITROREZ

• Functioning of HITROREZ
• Regulatory bodies will make an extensive list of
  regulations within their competence
• In the procedure of HITROREZ, there is a set of
  simple questions that need to be answered with
  respect to each regulation
• Is it necessary?
• Is it in accordance with law?
• Is it business-friendly?
• Is it in line with the WTO regulations?
• Is it in line with the EU standards?

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HITROREZ

• By using these criteria, the regulations are
  examined three times
• By the state administration bodies with the right
  to pass the regulations,
• By interested parties, like enterprises and
  entrepreneurs,
• By the Special Unit for HITROREZ with 12 trained
  professionals
• Once the three examination procedures are over,
  the Special Unit for HITROREZ makes a list of all
  regulations that need to be simplified or which
  are regarded as unnecessary/surplus
• The Croatian Government prepares the method to
  amend or place the regulations out of force

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HITROREZ

• Further activities
• Re-evaluation of the regulations at the level of
  local/regional government and self-government
• Improvement of the legislative procedure by
  introducing a systematic analysis of the impact
  of legal regulations in accordance with
  internationally recognised standards (Regulatory
  Impact Assessment)

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