Comprehensiveness of the regulatory impact assessment (RIA) system, and consistency and quality of implementation

Requirement to use at least basic analytical tools and techniques to analyse impacts and risks of draft laws and regulations

Review if the existing rules of procedure of government and other relevant regulations require carrying out at least some basic analysis of the potential impacts and risks to inform government decision making. In particular, checks whether certain basic instruments, analytical tools and techniques are required and used during preparation of new regulatory policy proposals. At a minimum, supporting documents are required to be prepared (e.g. an explanatory memorandum, a policy statement and/or a cover letter) summarising evidence and analysis of the policy problem, the rationale for government intervention and the anticipated objectives, as well as containing information about consultations carried out with internal and external stakeholders. Check the existence of a regulatory requirement for applying at least basic tools of analysis of impacts and risks, and the fiscal impact assessment (1 point each). Other criteria assessing relatively more advanced aspects of the regulatory policy framework receive more points, at least 2 points each.

Basic analytical tools and techniques are consistently applied in practice

The consistency of implementation of at least basic analytical tools during policy preparation are checked based on the review of the full list of all draft laws approved by the government during the last full calendar year, as well as the relevant supporting documents that contain at least basic analysis of the potential impacts and risks of those proposals (e.g. explanatory memorandum, policy statements). The relevant list of required supporting documents is established based on the review of the existing national regulations. The criteria is considered to be met if the required analysis is provided in a RIA report that is being prepared for all legislative and regulatory proposals. Administrations are asked to inform whether the required documents were prepared for all approved draft laws and regulation. Random checks are carried out ensuring all relevant supporting documents were indeed prepared and included in the final packages that went to the government for approval. Further checks are carried out based on the review of the actual supporting documents of a selected sample of five cases. A sample of five draft laws and the relevant supporting documents are reviewed and checked. No points are allocated if there is at least one case/draft law for which the required analysis and documentation was not prepared. Also, no points are allocated if there are major problems or discrepancies found in the completed documents of five samples (e.g. one of the sample documents has an empty section).

Requirement to carry out analysis of budgetary/fiscal impacts of all legislative and regulatory proposals

Review of the rules of procedure of government and other relevant regulations to check if the existing rules and procedures require preparation of a fiscal/budgetary impact assessment of draft laws and regulations in order to analyse the potential increases/decreases in the state budget expenditures/revenues. The analysis of fiscal impacts can be carried out as part of RIA (if it exists and functions). In which case, additional checks are carried out to ensure that RIA is prepared for all regulatory proposals considered and approved by the government. check the existence of a regulatory requirement for applying at least basic tools of analysis of impacts and risks, and the fiscal impact assessment (1 point each). Other criteria assessing relatively more advanced aspects of the regulatory policy framework receive more points, at least 2 points each.

Budgetary/fiscal impact assessment is consistently conducted in practice

Consistency of preparation of the fiscal impact assessments are checked based on the review of the full list of all draft laws and regulations approved by the government during the last full calendar year, as well as the relevant supporting documents that were prepared for those proposals (e.g. explanatory memorandum, fiscal impact assessments, RIA reports, public consultation reports). The complete list of all required supporting documents established based on the review of the existing national regulations. Administrations are asked to inform whether the required documents were prepared for all draft laws and regulations approved during the last full calendar year. Random checks are carried out to ensure that all relevant supporting documents were indeed prepared and included in the final packages that went to the government for approval. Further checks are carried out based on the review of the actual supporting documents of a selected sample of five cases. No points are allocated if there is at least one case/draft law for which the required analysis and documentation was not prepared. Also, no points are also allocated if there are major problems or discrepancies found in the completed documents of five samples (e.g. one of the sample documents has an empty section).

A full RIA, covering all relevant impacts, is required for primary legislation initiated by government

Review of the rules of procedure of government and other relevant regulations to check if there is a formal requirement for draft primary legislation (draft laws) initiated by government to undergo RIA analysis. Regulations, methodology and guidelines on RIA are checked to ensure a systematic analysis of all relevant impacts as part of RIAs, including impacts on climate, environment, gender, economy, business, competition and small and medium-sized enterprises, are carried out.

RIA is consistently carried out for all draft laws approved by the government (%)

The consistency and scope of RIA implementation on draft laws is assessed by calculating the share of draft laws approved by the government during the last full calendar year for which RIA was prepared and included in the package that was submitted to the government for approval. Administrations are asked to provide the full list of all draft laws approved by the government during the last full calendar year, indicating the draft laws which had RIA prepared. The indicator is calculated by dividing the number of approved draft laws for which the final RIA report was prepared with the total number of all draft laws approved by the government during the last full calendar year. Laws related to the state budget, as well as laws on ratification of international agreements are excluded from the analysis. Further checks are carried out on a sample of five draft laws to be selected by SIGMA. The related RIA reports for those sample laws are requested and checked, together with the actual draft law and other supporting documents. National rules on exclusion and exception of certain types of draft laws from RIA analysis are not considered when calculating this sub-indicator to ensure comparability across administrations. Points are allocated based on the percentage of government-approved draft laws during the last full calendar year which had RIA prepared to inform decision making (x): • x < 30% = 0 points. • 30% ≤ x < 70% = linear function. • x ≥ 70% = 7 points.

RIA process starts early and the analysis of policy problems and rationale for intervention are used to inform the preparation of the government’s legislative planning

Review of rules of procedure of government, instructions, and manuals on preparation of a government annual work programme/legislative plan as well as the RIA manuals and guidelines. It is checked whether RIA or other similar tools are used during early stages of policy preparation. In particular, checks are carried out to assess whether an initial RIA or another instrument which analyses the policy problem, policy objectives and the rationale for government initiation is prepared and used to inform prioritisation and preparation of the annual government legislative plan/work programme. The criterion is fulfilled when sufficient evidence confirms that analysis of the policy proposal and its impacts through the RIA framework is initiated early, before the formal decision to plan and introduce new legislation is made through the adoption of a government annual legislative plan.

RIA report includes full analysis of policy problem, objectives, and justification for government intervention

A sample of five draft laws and the relevant RIA reports are analysed to assess this criterion. The five samples are selected from the full list of all draft laws approved by the government during the last year for which RIAs were prepared. The draft laws which are likely to have the most significant (substantive) regulatory impact are identified and selected by SIGMA for in-depth analysis. The criterion is considered fulfilled if RIA samples provide sufficient analysis of the policy problem, policy objectives and justification for government intervention through a new regulatory measure. Points are allocated based on a qualitative review of sample RIAs and related laws.

RIA report considers at least one alternative option, in addition to the status quo and the preferred option

A sample of five draft laws and the relevant RIA reports are analysed to assess this criterion. The five samples are selected by SIGMA from the full list of all draft laws approved by the government during the last year for which RIAs were prepared. The draft laws which are likely to have the most significant (substantive) regulatory impact are identified and selected for in-depth analysis. The criterion is considered fulfilled if RIA reports discuss at least one alternative option, including a regulatory or non-regulatory option, in addition to the status quo (do nothing) situation and the preferred regulatory option. Points are allocated based on a qualitative review of sample RIAs and related laws.

RIA report identifies the main affected groups and explains how they will be impacted by the proposal

RIA report provides at least a qualitative assessment of all relevant impacts arising from all provisions of the law

A sample of five draft laws and the relevant RIA reports are analysed. The five samples are selected by SIGMA from the full list of all draft laws approved by the government during the last year for which RIAs were prepared. The draft laws which are likely to have the most significant (substantive) regulatory impact are identified and selected for in-depth analysis. The criterion is considered fulfilled if experts assess that sample RIA reports provide adequate assessment of all relevant impacts arising from the new rules and requirements introduced by the draft law. Checks are carried out to ensure that the following and other relevant impacts were identified and analysed for the main preferred regulatory option: 1) impacts on green, climate and environment; 2) impacts on gender, youth, age groups; 3) impacts on economy, competition and innovation; 4) impact on social aspects and regional development; 5) impact on businesses and administrative burden creation; 6) any other major impacts. Points are allocated based on a qualitative review of sample RIAs and related laws.

RIA report provides monetised estimates of main impacts (costs and benefits) of at least the preferred option

RIA report provides a comparative summary of analysis of different options justifying the selection of the preferred option

RIA report includes information and analysis of the policy implementation and enforcement mechanisms and any risks that should be considered for full compliance

A sample of five draft laws and the relevant RIA reports are analysed. The five samples are selected by SIGMA from the full list of all draft laws approved by the government during the last year for which RIAs were prepared. The draft laws which are likely to have the most significant (substantive) regulatory impact are identified and selected for in-depth analysis. The criterion is considered fulfilled if SIGMA assesses that sample RIA reports provide analysis of risks and issues related to policy implementation, preparatory work needed for adoption of secondary legislation and/or any enforcement mechanisms and arrangements that would need to be used to ensure full compliance and achievement of objectives. All (maximum) points are allocated if all RIA samples meet the criterion; half of the points are allocated, if all RIA samples except one meet the criterion. Points are allocated based on a qualitative review of sample RIAs and related laws.

RIA report includes information and analysis on how policy will be monitored and evaluated ex post

There is a formal requirement to conduct RIA on all secondary legislation/regulations approved by the government

review of the rules of procedure of government and other relevant regulations to check if there is a requirement for draft regulations/secondary legislation approved by government to go through comprehensive analysis through RIA (similar to draft laws). The RIA requirement should apply to all normative acts and decisions of government which are regulatory by nature, and introduce new rules or regulations or change the existing regulations that create additional impacts on businesses, citizens and/or public sector organisations. Regulations and methodology of RIA are checked to assess whether they enable systematic analysis of all relevant impacts of those regulations, including impacts on climate, environment, gender, economy, business, competition and small and medium-sized enterprises.

RIA on secondary legislation (regulations) is carried out in practice for all cases prescribed by legislation (%)

Consistency of RIA implementation on secondary legislation approved by the government is assessed based on the review of all normative acts and decisions of government which are regulatory by nature, and were approved by the government in the last full calendar year. The national administrations are asked to provide the full list of all normative acts and decisions approved by the government during the last full calendar year, indicating the regulations for which RIA had been prepared at the time of government approval. Exceptions and exclusions to the RIA rule provided in the national regulations and procedures establishing the RIA system for the secondary legislation will not be considered in the calculation of this sub-indicator (i.e. all eligible acts of government which are in regulatory nature will be included in the baseline). SIGMA will determine the scope of the regulatory measures to be considered in the analysis to ensure only regulatory measures are included. Points are allocated based on the percentage of RIAs produced on the regulations introduced through secondary legislation approved by the government during the last full calendar year (x): • x < 20% = 0 points. • 20% ≤ x < 70% = linear function. • x ≥ 70% = 4 points.