1. C.H. Montin, Ankara 12 May 2014 11 Ankara, 12 May 2014 Selected techniques to reduce legislation and deregulate Charles-Henri Montin, Smart Regulation Consultant Former Senior Regulatory Expert, Ministry of economy and finance, Paris http://smartregulation.net For the full presentation (18 slides), contact speaker

2. C.H. Montin, Ankara 12 May 2014 2 Contents  What is deregulation?  Issues governing deregulation  List of reviewing techniques (World Bank)  Deregulation as part of a systemic policy (UK example)  Selected operational techniques –Administrative Procedure Reengineering –Guillotine –Statute law revision  How to enact deregulation (drafting examples)

3. C.H. Montin, Ankara 12 May 2014 3 What is deregulation?  Regulatory policy supports two objectives  1/ maintenance of legal corpus by regular operations of review and deletion of obsolete texts  2/ “freeing-up” the economy by seeking a reduction in the overall volume of legislation: –Follows evaluation and stakeholder input on obstacles to economic performance –Usually addresses key sectors such as telecoms, energy, etc

4. C.H. Montin, Ankara 12 May 2014 4 Issues governing deregulation  Great variety in diagnostic tools to identify the texts that can be abolished: –Ex-ante: review and sunset clauses –Ex-post: guillotine, process reengineering  But deletions must respect legal constraints in force –Hierarchy of norms must be respected –Need for good legal drafting to target the right articles without jeopardising legal security

5. C.H. Montin, Ankara 12 May 2014 5 “Selected” tools for reviewing regulatory stock  Process re- engineering  Doing Business indicators and reforms  Standard cost model  The Guillotine  Bulldozer  Scrap and build  Staged repeal  Review and sunset clauses  Statute law revision  Codification  Recasting  Consolidation World Bank manual

6. C.H. Montin, Ankara 12 May 2014 6 Deregulation in context (UK example) “

7. C.H. Montin, Ankara 12 May 2014 7 Definition of review and sunset clauses

8. C.H. Montin, Ankara 12 May 2014 8 Drafting a review + sunset clause

9. C.H. Montin, Ankara 12 May 2014 9 Administrative procedure reengineering

10. C.H. Montin, Ankara 12 May 2014 10 How to give legal effect to reengineering  Once the flow chart has been established, identify the legal articles that support each stage  Discuss with substantive departments the utility of each stage, with special attention to certain phases like external advice, reporting, statistics  Achieve consensus on simplification of the process by deletion/reduction of certain requirements  Draft corresponding reform text to enact the reforms

11. C.H. Montin, Ankara 12 May 2014 11 Guillotine: definition and purpose  process of counting and then reviewing a large number of regulations against some criteria  Characterized by reversal of burden of proof  Used for liberalising the national economy Examples  removing regulations not consistent with a market democracy (Hungary),  Simplifying business formalities (Mexico),  Supporting licensing reforms (Kenya,  Reducing bureaucracy (Viet Nam)

12. C.H. Montin, Ankara 12 May 2014 12 The guillotine process (WB)  Legal act to establish scope, process, project structure and schedule  On instruction, departments draw up inventory of existing procedures and supporting regulations  Inventory includes self-assessment according to a checklist: necessity, legality, business- friendliness  Classification into “retain”, “eliminate”, “revise” is verified by an independent body  Government deletes in one decision (list)

13. 30/04/14C.H. Montin, Ankara 12 May 2014 Guillotine: enactment  Government decision enacting the deletions Or  Preparation of draft primary legislation  Example: Viet Nam - To implement the simplification of these 258 procedures, 14 laws, 3 ordinances, 44 decrees, 8 Prime Minister’s decisions, 67 circulars and 33 ministerial decisions have to be amended. - For simplification that does not require the changing of laws and ordinances, ministries and agencies were held responsible for issuing the amended documents. - However, amendments to laws and ordinances are needed to simplify most of the APs. Ministries and agencies were asked to develop by 30 November 2010 draft laws and ordinances to amend, supplement, replace or abolish relevant regulations. These drafts were to be sent to the Ministry of Justice where they would be compiled into (an) omnibus law(s) and then submitted to the Government for consideration and decision, before being approved by the National Assembly.

14. 30/04/14C.H. Montin, Ankara 12 May 2014 Statute law revision  a tool to remove laws obsolete or not longer of practical utility  Drafting Example from Australia  STATUTE LAW REVISION ACT 2011 (NO. 5, 2011) - SECT 3: Schedules Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

15. 30/04/14C.H. Montin, Ankara 12 May 2014 The French model of deregulation “Loi anti-loi” technique  Chapter V (of the law on legal simplification) Repeal of miscellaneous clauses Article 13. Are and remain repealed: 1° Article L.112-3 of the national service code; 2° The law dated 27 November 1790 creating a supreme court, and setting its powers, organisation and composition; 3° the decree of 19 and 22 July 1791 instituting a municipal and correctional police; Etc until number 137: law of 22 May 1946 creating a national council of labour.

16. 30/04/14C.H. Montin, Ankara 12 May 2014 The Italian guillotine

17. C.H. Montin, Ankara 12 May 2014 17 To continue the study… Tools and Approaches to Review Existing Regulations  World Bank: Tools and Approaches to Review Existing Regulations: https://www.wbginvestmentclimate.org/uploads/B RGTools.pdf https://www.wbginvestmentclimate.org/uploads/B RGTools.pdf  Further questions contact: montin @ smartregulation.net