Legislative Decree No. 1448

LEGISLATIVE DECREE NO. 1448

THE PRESIDENT OF THE REPUBLIC

WHEREAS:

That, by Law No. 30823, the Congress of the Republic has delegated to the Executive Power the authority to legislate in matters of economic management and competitiveness, integrity and the fight against corruption, prevention and protection of persons in situations of violence and vulnerability, and modernization of State management, for a period of sixty (60) calendar days;

That, subsection c.2 of letter c) of paragraph 5) of Article 2 of the aforementioned Law establishes that the delegation includes the authority to legislate to clarify the principles, effects, and scope of the Regulatory Quality Analysis; as well as to perfect the institutional framework and the instruments governing the process of improving regulatory quality, as part of an integral and continuous process. No simplification measure may in any way signify the reduction or elimination of rights or substantive requirements;

That, in accordance with what is established in subsection c.2 of letter c) of paragraph 5) of Article 2 of Law No. 30823, and Article 104 of the Political Constitution of Peru;

With the approving vote of the Council of Ministers; and,

Subject to reporting to the Congress of the Republic;

Has issued the following Legislative Decree:

LEGISLATIVE DECREE THAT MODIFIES ARTICLE 2 OF LEGISLATIVE DECREE NO. 1310, LEGISLATIVE DECREE THAT APPROVES ADDITIONAL MEASURES FOR ADMINISTRATIVE SIMPLIFICATION, AND PERFECTS THE INSTITUTIONAL FRAMEWORK AND THE INSTRUMENTS GOVERNING THE PROCESS OF IMPROVING REGULATORY QUALITY

Article 1.- Object
This Law aims to modify Article 2 of Legislative Decree No. 1310, Legislative Decree that approves additional measures for administrative simplification, as well as to perfect the institutional framework and the instruments governing the process of improving regulatory quality as part of an integral and continuous process.

Article 2.- Modification of Article 2 of Legislative Decree No. 1310
Article 2 of Legislative Decree No. 1310 is modified, according to the following text:

“Article 2.- Regulatory Quality Analysis of administrative procedures

2.1. Executive Branch entities must conduct a Regulatory Quality Analysis of administrative procedures established in normative provisions of general scope, in order to identify, eliminate and/or simplify those that are unnecessary, ineffective, unjustified, disproportionate, redundant, or not adequately aligned with the General Administrative Procedure Law or the laws with the rank of law that serve as their basis. The Regulatory Quality Analysis also aims to determine and reduce the administrative burdens generated for citizens as a consequence of the administrative procedure. The Regulatory Quality Analysis does not apply to administrative procedures contained in laws or norms with the rank of law, unless they are developed in regulatory norms. Once this evaluation is carried out, they must submit their analysis to the Multisectoral Commission referred to in subsection 2.3.

2.2. Through the Regulatory Quality Analysis, the principles of legality, necessity, effectiveness, and proportionality of the administrative procedures indicated in subsection 2.1 are evaluated, whose scope, application, and effects are established in the Regulations of this Legislative Decree.

(…)

2.4. The Regulatory Quality Analysis must be prepared and submitted to the Multisectoral Commission for Regulatory Quality for validation, according to the following details:

a) In the case of administrative procedures established in normative provisions in force on the date of entry into force of this Legislative Decree, according to the schedule to be established by Supreme Decree, observing what is stipulated in subsection 2.6. b) Before the approval of normative provisions that establish or regulate administrative procedures, if they are new provisions issued after the entry into force of this Legislative Decree. c) In the case of administrative procedures that enter the Review Cycle according to what is established in subsection 2.7. d) In the case of modifications to administrative procedures established in normative provisions in force, before the modification to the respective normative provision is approved.

2.5. Normative provisions that establish administrative procedures that are not included or covered in the analysis submitted by Executive Branch entities:

a) Are automatically repealed, in the case of letter a) of subsection 2.4, according to what is provided in subsection 2.6 of this article. b) Do not enter into force in the case of new normative provisions, indicated in letter b) of subsection 2.4. c) Are automatically repealed, in the relevant part, the normative provisions that establish or regulate administrative procedures according to letter c) of Article 2.4. d) Do not enter into force in the case of modifications to normative provisions according to letter d) of subsection 2.4.

2.6. After validating the Regulatory Quality Analysis submitted by Executive Branch entities, the Multisectoral Commission issues an opinion proposing the administrative procedures that, being duly justified, must be ratified or issued. By Supreme Decrees, with the approving vote of the Council of Ministers, the list of administrative procedures that will remain in force until their new ratification is approved. The normative provisions that establish administrative procedures not expressly ratified after following this procedure are repealed, in the relevant part, and entities must carry out the necessary normative adjustments in accordance with what is provided in subsection 2.12. For the case of administrative procedures established in normative provisions in force on the date of entry into force of this Legislative Decree, the maximum deadline for ratification expires on December 31, 2018, which may be extended by Supreme Decree with the approving vote of the Council of Ministers for up to six (06) additional months, at the proposal of the Multisectoral Commission.

2.7. By Supreme Decree countersigned by the President of the Council of Ministers, the Minister of Justice and Human Rights, and the Minister of Economy and Finance, the schedule and criteria for prioritization and evaluation of those administrative procedures ratified or issued that enter the Review Cycle are approved, in periods not less than three (03) years from the entry into force of the normative provision that establishes or modifies the administrative procedure or from its last ratification, the procedure referred to in subsection 2.6 of this article being applicable. The Review Cycle is not applicable to those administrative procedures that recognize rights to citizens not subject to a deadline.

Without prejudice to entering the Review Cycle, Executive Branch entities have the obligation to continue with their work of administrative simplification and reduction of administrative burdens under the supervision of the Presidency of the Council of Ministers.

2.8. Without prejudice to the unenforceability of normative provisions and/or administrative procedures that do not comply with what is established in this Legislative Decree and the administrative responsibility that corresponds, users or citizens may report non-compliance with what is established in this article before the Commission for the Elimination of Bureaucratic Barriers of INDECOPI, which may take the measures corresponding to its powers. Only upon request of a party can a procedure in matters of elimination of bureaucratic barriers be initiated regarding administrative procedures or requirements that have been validated or ratified as a result of the Regulatory Quality Analysis, except for the presentation of an informative complaint in which case it may be initiated ex officio. In cases where INDECOPI identifies a presumed bureaucratic barrier derived from subsequent modifications in the regulatory framework governing the exercise of economic activities, it brings the fact to the attention of the Presidency of the Council of Ministers so that it requires the entity to submit the Regulatory Quality Analysis within a period not exceeding 30 business days, when applicable. In the event of non-compliance by the entity, INDECOPI initi the procedure ex officio.

(…)

2.11. What is provided in this article does not apply to administrative procedures of a tax nature. It is also not applicable to administrative procedures contained in or derived from international trade agreements signed by Peru.”

Article 3.- Incorporation of subsection 2.12 into Article 2 of Legislative Decree No. 1310
Subsection 2.12 is incorporated into Article 2 of Legislative Decree No. 1310, according to the following text:

“2.12. As a result of the Regulatory Quality Analysis, Executive Branch entities, when applicable, are obligated to:

a) Adapt and clean up the normative provisions that established administrative procedures not ratified. b) Issue the corresponding normative provisions to eliminate or simplify requirements as a result of the Regulatory Quality Analysis. c) Publish the list of administrative procedures eliminated. d) Publish the list of administrative procedures ratified and their requirements. e) Submit to the Ministry of Justice and Human Rights to be compiled in the Peruvian System of Legal Information - SPIJ what is provided in letters a) and b) of this article. The Presidency of the Council of Ministers supervises compliance with this subsection.”

Article 4.- Improvement of regulatory quality
The improvement of regulatory quality is an ordered, integral, coordinated, gradual, and continuous process oriented towards promoting efficiency, effectiveness, transparency, and neutrality in the exercise of the State's normative function. It fosters a government management culture centered on the citizen, whereby the Public Administration decides to use regulation as an instrument to achieve a public policy objective, adopting the decision to regulate based on evidence, rationality, evaluation of its possible impacts and administrative burdens, with the aim of generating and facilitating integral development and social well-being.

Article 5.- Instruments for the improvement of regulatory quality
The following are instruments for the improvement of regulatory quality, in an enumerative and not limiting manner:

a) Administrative simplification. b) The Regulatory Quality Analysis of administrative procedures. c) Ex ante and ex post regulatory impact analysis. d) Consultation through its various modalities. e) The costing of regulation and procedures. f) Reviews and repeals of the legal order. g) Others established by Supreme Decree.

Article 6.- Design of instruments
By Supreme Decree countersigned by the President of the Council of Ministers, the Minister of Economy and Finance, and the Minister of Justice and Human Rights, the instrument referred to the regulatory impact analysis is approved.

For the design of the other instruments, the Presidency of the Council of Ministers may call for the participation of other sectors within the framework of their respective competencies.

Article 7.- Financing
The implementation of what is provided in this norm is financed from the institutional budget of the involved entities, without demanding additional resources from the Public Treasury.

Article 8.- Countersignature
This Legislative Decree is countersigned by the President of the Council of Ministers.

FINAL COMPLEMENTARY PROVISION

First.- Within a period not exceeding 90 calendar days counted from the day following the publication of this norm, adjustments are made to the Regulations for the application of the Regulatory Quality Analysis of administrative procedures established in Article 2 of Legislative Decree No. 1310, approved by Supreme Decree No. 075-2017-PCM, which does not affect the obligation to carry out the Regulatory Quality Analysis by entities.

Second.- Within a period not exceeding 180 calendar days counted from the day following the publication of this norm, the instrument referred to the regulatory impact analysis is approved by Supreme Decree countersigned by the President of the Council of Ministers, the Minister of Economy and Finance, and the Minister of Justice and Human Rights.

THEREFORE:

It is ordered to publish and comply, giving account to the Congress of the Republic.

Given in the Government House, in Lima, on the fifteenth day of the month of September of the year two thousand eighteen.

MARTÍN ALBERTO VIZCARRA CORNEJO
President of the Republic

CÉSAR VILLANUEVA ARÉVALO
President of the Council of Ministers

1692078-23