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The Regulatory Impact Assessment (RIA) of existing and draft normative legal acts is a new mechanism to improve the conditions for entrepreneurial and investment activities in Moscow. The RIA procedure is established by Decree of the Moscow Government # 99-PP dated March 4, 2014 “On assessment of regulatory impact upon preparation of draft regulatory legal acts of the Moscow Government and assessment of actual impact of the Moscow Government regulatory legal acts”.
Regulatory Impact Assessment (RIA) is the assessment of draft regulatory legal acts. Actual Impact Assessment (AIA) is carried out some time after a regulatory legal act comes into force.
The assessment of the draft acts regulatory impact is aimed to select the best possible regulatory option based on the analysis of alternative regulatory options and the expected positive and negative consequences thereof. Particular attention is paid to identifying the draft act provisions that introduce or contribute to the introduction of excessive duties, prohibitions and restrictions for business and investment entities, which may lead these entities and/or the Moscow budget to unreasonable expenses.
The main actual impact assessment goals are to find out whether the stated regulatory goals have been achieved, to determine the expenses of various groups associated with the introduction of regulation, to find out whether there is a need to change the regulation in order to provide a better balance of benefits and costs.
The RIA report of the Moscow EA shall:
|If there is no regulatory impact assessment mechanism (RIA)|
|- Approving the regulation without additional expenses for the communication with businesses||- No need to waste time and resources on discussions|
|- Bearing the risks of the businesses’ refusal to accept the regulation (the non-fulfillment of requirements, withdrawal into the shadows)||- Businesses’ interests are not fully accounted for - For businesses, especially small ones, it is difficult to communicate their opinions to the regulator - There is no open information about the upcoming changes (while some organizations might have advantages of having this information) - It is necessary to adapt to regulation changes within extremely short periods of time|
|If the regulatory impact assessment (RIA) has been performed|
|- The actual data provided by businesses, that is necessary for a more objective assessment - The information about the business perception of a project / initiative - The opportunity to design a regulation so that businesses would not avoid fulfilling the requirements - The improvement of the regulation quality||- The opportunity to communicate their opinion to public authorities - The exclusion of the provisions that create excessive restrictions and costs for businesses from regulations - The predictability of changes, the opportunity to adapt to them in advance - The increased government openness|
|- The costs of the communication with businesses and account of the opinions received||- The time and resources for the creation of suggestions as part of public consultations|
In 2018, RIA and AIA were conducted in relation to 13 statutory instruments and the drafts of those, including the following: RIA of the Moscow Government draft resolution, concerning the reimbursement of investors’ expenses for the improved residential premises (apartments) decoration incurred during the investment contract (agreement) term, and AIA of 12 Moscow city regulatory legal acts, concerning the transport system and road infrastructure development, land improvement, ecology, industry, investment and innovation, tourism.
The assessment participants were 7 industry-specific executive authorities, over 1,500 respondents, including the representatives of public and business associations representing the interests of entrepreneurs, and the Moscow business rights commissioner.
Based on the actual impact assessment results, it was recommended that 7 of 12 statutory instruments should be changed.
|Public consultation participants, total||1732||1814||1919||1709||1516|
|Association and the ombudsman opinions, on average,
per 1 public consultation
|Opinions shared via website, on average,
per 1 public consultation
In the rating of the Russian Ministry of Economic Development, Moscow is included in the group of the Russian Federation constituent entities with the highest regulatory impact assessment quality.