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BUSINESS REASEARCH COMPANY

506, Floor 5, 45-B Puskin str.

Chisinau, Republic of Moldova

Tel: +373 22 222501

Mobile: +373 69148063

info@brc.md


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EXPLORING OPPORTUNITIES

FINAL REPORT

Assessing the feasibility of introducing the single public body as a one-stop shop for issuing permissive documents”
Contract # CEP-II/CS-19/1-CQS-01

Date: February 22, 2016


Prepared by:

Business Research Company


Approved: ________________
Vitalie IURCU

Deputy Minister of Economy



CONTENTS


EXECUTIVE SUMMARY 3

TASKS PERFORMED IDENTIFICATION OF ONE-STOP SHOP SOLUTIONS 7

Task 6: Study best international practices in implementing one-stop-shop solutions 7

Task 7: Identify and recommend improvements before exploring one-stop-shop solutions 24

Task 8 and 9: Identify institutions with a potential role of front office in getting permits and assess the information technology (IT) capacity required for a one-stop shop 32

Task 10: Develop one-stop-shop solutions for selected permits and implementation action plan 47

Annex 1. References for sources of international best practices 68

Annex 2. Summary of analysis and recommendations of 36 priority permits (29 central public administration and 7 local public administration permits) 70

Annex 3. Summary of the Analysis of Licenses 75

Annex 4. Recommended amendments to legislation 79

Annex 5. Concept of the Information Systems for Managing and Issuing Permissive Documents 100

Annex 6. Action Plan for optimization of permits and implementation of one-stop-shop solutions 125

Annex 7. Cost Assessment Methodology 135

Annex 8. Assessment of Administrative Cost and Potential Savings from Proposed Reforms for Priority Permits 139

Annex 9. Passports of 36 priority permits, including analysis and recommendations 142

Annex 10. Passports of 46 licenses, including analysis and recommendations 246




EXECUTIVE SUMMARY

The Study: “Assessing the feasibility of introducing the single public body as a one-stop shop for issuing permissive documents” comes to respond to the following objectives:



  • Assess and prioritize the permissive documents issued by central and local public administration bodies.

  • Assess the feasibility of introducing one-stop-shop solutions for prioritized central and local permits, which would reduce the burden on business

  • Prioritize the permissive documents to include in the one-stop shop, and develop the draft legal documents required


Assessment and prioritization of permissive documents
In order to identify the list of permits, researchers developed and submitted through the Ministry of Economy the questionnaires to public authorities issuing permits, as well as reviewed normative acts and relevant studies. A total of 416 permits have been identified and assessed, which included:

  • 293 permits listed in Law 160 (law on permits).

  • 69 permits issued by central public authorities not listed in Law 160.

  • 46 licenses.

  • 8 local permits.

Following the assessment of compliance of permits with selected better regulation principles, it was found out that more than 90% of permits did not comply with at least one better regulation principle or were not included into Law 160.
Administrative costs for businesses caused by permits have been assessed. Based on estimated costs, priority permits have been selected (29 permits issued by central public administration, 7 permits issued by local public administration and 46 licenses), for which the feasibility study for one-stop-shop solutions was carried out.
Assessment and prioritization of permits was presented in Progress Report 1, which covers tasks 1-5 of the Terms of Reference. That report remained unchanged.

Feasibility Study for One-stop-shop

The Final Report represents a revised version of the Progress Report 2, following the comments and discussions which took place during the presentation of the Progress Report at the Working group on regulation of business activity session on January 13, 2016. This report presents the revised results of activities carried out according to the tasks 6-10 of the Terms of Reference.

The Report starts with the analysis of best international practices related to implementation of one-stop-shop (OSS) solutions. It considers various models of OSSs, looks at the applicability of various front and back office solutions, and considers the best practices through case studies on different countries. A common approach in researched countries was to establish a virtual platform that would serve as a front office and integrated access point for numerous back offices in permit issuing institutions. This allows for instant automated exchange of information among public institutions and reduces the burden on businesses. For instance, in Singapore the Online Application System for Integrated Services (OASIS) platform integrated 70 permits across 30 agencies into one common front-end platform, which allows businesses to apply for multiple permits at the same time, in a simple and speedy way.

This Report deals with permits prioritized under the First Progress Report (29 central public administration permits, 7 local public administration permits and 46 licenses). Before exploring one-stop-shop solutions, based on better regulation principles and OSS objectives to reduce administrative burden for businesses, the permits have been assessed to identify and recommend improvements.

Detailed assessment of permits is included in the permit passports attached to this report. The main recommendations deal with elimination of permits, reduction of scope of permits, increase in duration of validity, simplification of procedures, technical simplifications and reduction in number of documents required for issuing permits.

Besides specific suggestions by each permit, general recommendations have been made and a draft law on amending Law 160 on regulation through permits of business activity was proposed. The main purpose of amendments was to enhance clarity of better regulation principles, reduce discretion in introducing new permits and application of existing ones and ensure a more proportionate approach in regulatory intervention through permits into business activity.

At the same time, the amendments come to remove conflicting provisions between law 160 and law 161 on implementation of one-stop-shop in carrying out business activity. Additionally, certain provisions have been proposed to facilitate establishing ones-top-shop solutions. Finally, the authors proposed a new version of the nomenclature of permits attached to the law, which excludes from the list the confirmative acts (these remain in legislation but will not be used as permits), permits which are not being applied or issued anymore, several acts which overlap with others, as well as introduces corrections to the names of permits and issuing public authorities. In total about 30% of permits are excluded from the nomenclature. It is important to mention that, later, following the gradual revision of permits, the list of such in the nomenclature could change, so that some of the permits could be excluded and others introduced from those 69 permits that exist without being included into the nomenclature.

In identifying one-stop-shop solutions, a number of important institutions with a potential role of front office have been considered and relevant ICT capacities have been assessed, such as Single Public Services Portal (servicii.gov.md); common Government shared services for electronic authentication, electronic payment, electronic notifications, electronic signing, interoperability mechanism, electronic registries and authorization platforms.

The study concluded that the best solutions for nationwide coverage would be to implement an information system for managing and issuing permissive documents, which would provide access from large number of access points, including: computers, smart phones, tablets and public terminals that can be connected to Internet and can ensure a transparent interaction between businesses and public authorities regardless of their location. The system would be used by the permit issuing public authorities and certain institutions with potential front office role, to enable remote application for permits, exchange of documents and information among public institutions with minimum, if any, participation of applicants and issuing permits, which could be accessed by any public institution that requires them. For applicants who do not have access to Internet, the front office role can be played by post offices, local public administration authorities and permits issuing authorities, which could service as front office for applying to documents required in issuing permits. It is recommended for the State Chancellery to establish a separate department responsible for implementation and monitoring the functionality of the one-stop-shop solutions. It will serve as maintenance, development and coordination body, having direct contacts with all permit issuing bodies, which are part of this system.

To minimize the development and operation costs the system will be integrated with the Government shared services such as Mpay, Msign, Mpass, Mconnect and will be deployed on the Government Cloud Platform (MCloud). The general presentation of the System is provided in the chart below, which is explained in details under task 10 of this Report. The Concept of the system is attached to this study.




Improvements to permits and one-stop-shop solutions proposed under this report are expected to generate significant savings in terms of administrative costs for businesses. The savings have been assessed based on the Standard Cost Model (SCM) methodology, which is a specially designed tool used to assess the impact of permits on businesses, in terms of costs and time spent by applicants. It is being widely used by governments and international organizations, such as IFC, World Bank, EU Commission. The assessment revealed that the administrative costs of permits for businesses in Moldova, which are costs related to effort spend by applicants to comply with administrative procedures, accounts for around 136 million MDL per year. Implementation of proposed improvements and one-stop-shop solutions could potentially reduce the administrative costs by up to 46%, which is up to 62 million MDL annually. At the same time permits cause certain indirect costs, such as waiting time for getting permits, which is around 1.4 million days for assessed permits per year. The proposed reforms could reduce this number by 400 thousand days annually. Moreover, the potential benefits for businesses could be much higher, as this assessment has not covered costs of compliance with regulatory requirements, which could be significantly higher than the administrative costs.
At the end, the study recommends an action plan on optimization of permits and implementation of one-stop-shop solutions. The actions can be grouped by the following major measures:

  • Establishment of the working group on the development, coordination and implementation of the permits optimization measures and one-stop solutions.

  • Review and promotion of draft amendments to the Law no. 160 on regulation through permits of business activity. Within these amendments a new version of the Nomenclature of permits will be approved.

  • Review of the results of permits assessment and drafting amendments to normative acts that regulate the permits to bring them in line with principles of good regulation or remove them. Here the permits which remain in the nomenclature, licenses and other permits which were not included in the nomenclature will be covered. Following the revision, amendments to the nomenclature will be proposed to remove or include new permits, which have been brought in compliance with requirements.

  • Review and acceptance of the concept of the Information System for Managing and Issuing Permissive Documents.

  • Development and implementation of one-stop-shop solutions.



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