«Analysis of the agenda of the plenary sitting of the Verkhovna Rada, and the agendas of extraordinary sittings to be held on Tuesday, April 13, 2021 from 10:00 to 15:00 (items 1-19), at 16.00 (items 20-24) and at 17.30 (items 25) -36) / total 36 questions /:» | UberText: lang-uk

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Analysis of the agenda of the plenary session of the Verkhovna Rada, and the agendas of extraordinary sittings to be held on Tuesday, April 13, 2021 from 10:00 to 15:00 (items 1-19), at 16.00 (items 20-24) and at 17.30 (items 25) -36) / total 36 questions /:

1. Draft Law No. 2194 (M. Zablotskyi) (repeat second reading; consideration of project proposals continues; the Committee proposes that the bill be adopted as a whole) “ON AMENDING THE LAND CODE OF UKRAINE AND OTHER LEGISLATIVE ACTS TO IMPROVE THE MANAGEMENT AND DEREGULATION SYSTEM IN THE SPHERE OF LAND RELATIONS” – by amending 28 legislative acts, the bill substantially reforms the management system in the sphere of land relations, simplifies access to land resources for the population and business; institutes “the office of state inspector for oversight over the use and protection of the lands of village, settlement and city councils” in the executive committees of village, settlement and city councils; the inspector will be entitled to consider cases on administrative offenses on behalf of the executive committees; the parliament won’t endorse the change of the intended use of particularly valuable lands.

FOR (+) No. 2194: The bill is intended to make the procedures in the land sphere transparent and fast; it empowers citizens to dispose of all state- owned lands, including agricultural ones, outside populated localities (the total area is 10 million hectares, or one sixth of the territory), except for lands used by the Ministry of Defense and plots of state enterprises; the annual increase in local budget revenues will amount to 4.5 billion UAH; oversight and regulation by territorial communities of non-purpose use of lands, urban construction documents, encroachment of land plots.

AGAINST (–) No. 2194: Duplication of the powers to oversee the use and protection of lands vested in the State Service of Ukraine for Geodesy, Cartography and Cadaster (StateGeoCadaster) and the State Environmental Inspection; StateGeoCadaster’s conflict of interest, since the Cadaster will combine the powers to dispose of agricultural lands of state enterprises, state institutions, experimental stations with the oversight powers in respect of these lands; simplification of change of the intended use of non-state- owned land (without the consent of the authorized executive body); the possibility of foreigners acquiring title to land plots by means of change of the intended use of these plots as a result of registration of title to the real estate object located on a plot of agricultural land; decrease of the size of the land plot provided to a citizen on lease terms for gardening to 0.6 hectares; granting the priority right to purchase an agricultural land plot in the new Article 130-1 of the Land Code to subsoil users even without land auctions; the powers of the central executive bodies are made dependent on decisions of representative local self-government bodies.

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2. Draft Resolution 4690-8 (D. Razumkov) ON AMENDMENTS TO THE AGENDA OF THE FIFTH SESSION OF THE VERKHOVNA RADA OF UKRAINE OF THE NINTH CONVOCATION - additionally includes 27 bills in the agenda.

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3. Draft Law No. 2195 (R. Pidlasa) (second reading; the Committee recommends that the bill be adopted as a whole) “ON AMENDING CERTAIN LEGISLATIVE ACTS REGARDING SALE OF PLOTS OF STATE OR COMMUNALLY OWNED LAND OR TITLE TO THEM (LEASE, SUPERFICIES, EMPHYTEUSIS) THROUGH ELECTRONIC AUCTIONS – the bill introduces mandatory sale of plots of state or communally owned land or title to them (lease, superficies, emphyteusis) through state electronic auctions within a unified trading system which will operate in the manner established by the Cabinet of Ministers; land auctions will be conducted in accordance with the agreement with the organizer, where the processes of bidding and submission of applications for participation are automated; based on the results of the auction, an agreement will be concluded with the winner of the auction who offered the highest price; the bidding for state or communally owned lands will be performed by the decision of the bidding organizer; the decision will indicate the starting price, the timeframe for and terms of using the plot, and the person authorized to enter into the contract; the bill establishes guarantees of integrity, registration and guarantee fees – the amount of the guarantee fee may not be less than 30% of the starting sale price or of the amount of the annual fee for the use of the plot; guarantee fees will not be refunded if not a single bid has been received or when the bidding protocol and the contract based on the results of the bidding have been signed, but the due amount if not a single bid was has not been paid; the starting price of state or communally owned agricultural lands will be equal to the normative monetary assessment; and of other lands, may not be lower than the expert monetary assessment.

FOR (+) No. 2195: Transparency, automation of all processes, and accessibility of land auctions; prevention of the starting price being set below the level of normative/expert monetary assessment; increase in revenues of budgets of all levels; conducting online land auctions without submitting any “papers”, registration, physical presence at auctions; the impossibility of abuse on the part of the organizers by means of provision of inaccurate or incomplete information to different participants; providing for the possibility of dividing large plots into smaller ones so as to make farmers’ participation reasonable; high accessibility of electronic auctions leads to competition and a fair market price (practice shows that the value of land plots increases by 223% at online auctions).

AGAINST (–) No. 2195: Presence of provisions of a reference nature (lack of regulation at Law level) on the organization of bidding, the amount, procedure for payment and return of remuneration to the operator of the electronic platform; lack of a mechanism for the participants to contact the organizer through the electronic trading system asking for clarification on the announcement of land auctions, the algorithm for prompt response to potential violations that may be committed by the organizers during the publication in the electronic trading system of the announcement of tenders; only three rounds of bidding are provided for.

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4. Draft Law No. 3952 (R. Stefanchuk) (first reading; the Committee recommends that the bill be adopted as a basis) “ON AMENDING CERTAIN LEGISLATIVE ACTS TO ENSURE OPNNESS OF INFORMATION ON THE SIZE OF LABOR REMUNERATION IN STATE-RUN COMPANIES” – the bill obliges state enterprises, state companies, economic partnerships with no less than 50% of their authorized capital owned by the state or a territorial community, and also legal public-law entities to publish information on the salary/remuneration of the chairperson (deputy chairperson) and members of supervisory councils and executive bodies, including the principles for the formation and sizes of salary and other types of remuneration, as well as to publish information on the organizational structure, mission, functions, powers, main objectives/tasks, areas of activities, and financial resources (structure and amount of budget funds, procedure and mechanism for their spending).

FOR (+) No. 3952: The bill increases the transparency of the subjects of the state economic sector; provides citizens with access to information; makes it easier to monitor the activities of such subjects, which will contribute to higher confidence in the authorities.

AGAINST (-) No. 3952: Communally owned enterprises are not included in the group of entities that are required to publish relevant information; no procedure is specified for managerial bodies to oversee the timeliness and appropriateness of the publication by the administrators of information on their websites; nor is there a procedure for the imposition of sanctions for failure to comply with the established obligations.

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5. Draft Law No. 4220 (President of Ukraine) (first reading; the Committee recommends that the bill be adopted as a basis) “ON AMENDING CERTAIN LEGISLATIVE ACTS OF UKRAINE TO REGULATE SOME ISSUES OF BANKRUPTCY PROCEDURES FOR THE PERIOD OF IMPLEMENTATION OF MEASURES AIMED AT PREVENTING THE EMERGENCE AND SPREAD OF THE CORONAVIRUS DISEASE COVID-19” – the bill specifies that during the quarantine period, the participation in remote meetings of creditors will require certification of the identity and authority of a participant in the meeting on the basis of documents certifying the identity and authority of the person using electronic digital signature; if the participant does not have an EDS, the identification will be performed in accordance with the Law “On the Unified State Demographic Register and Documents Confirming the Citizenship of Ukraine, Certifying the Identity or Special Status of the Person”; also, the bill sets out details of the procedure for holding a general meeting of creditors in the form of answers to questions (provided that the recipient of the correspondence is duly identified); proposes resuming the possibility of initiating bankruptcy proceedings against debtors that are legal entities at the request of creditors with claims against the debtor arising from March 12, 2020 (according to the current Final and Transitional Provisions of the Code, there is no such possibility during the quarantine period and 90 days after its cancellation); releases the bankruptcy administrator from disciplinary liability (now the administrator is released from any liability) for failure to act if this failure resulted from the quarantine.

FOR (+) No. 4220: Creation of conditions for protection by economic subjects of property rights and the right to repay debts; ensuring equality before the law and the court in the course of implementation of bankruptcy procedures; granting the right to use the electronic digital signature (EDS) to certify the identity and authority of the participant in the meeting (committee session) of creditors; restoration of the possibility of initiating bankruptcy proceedings against debtors that are legal entities at the request of creditors with claims against the debtor arising from the day of imposition of the quarantine.

AGAINST (–) No. 4220: Duplication of certain norms that are already in force, which may complicate the practical implementation of the Law; the procedure for identifying a person without EDS is not specified – only a reference to the Law of Ukraine “On the Unified Demographic Register…” which does not set out such a procedure; and information from the Register can only be used with the consent of the person concerned or in the interests of national security, economic wellbeing, and protection of human rights.

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6. Draft Law No. 4540 (Cabinet of Ministers) (first reading; the Committee proposes that the bill be adopted as a basis) “ON AMENDING THE CODE OF UKRAINE ON ADMINISTRATIVE OFENSES TO PREVENT THE SPREAD OF THE ACUTE RESPIRATORY DISEASE COVID-19 CAUSED BY THE ROCONAVIRUS SARS-COV-2” – the bill provides for administrative liability (a fine of UAH 3,400–8,500) for violating the procedure for self-isolation/observation, if this did not lead to the spread of the disease, and empowers local executive bodies, border guards and police officers to consider administrative liability cases.

FOR (+) 4540: Preconditions for addressing the problem of citizens’ irresponsible attitude towards self-isolation; the bill is likely to lead to a reduction of the rate of spreading of infections.

AGAINST (–) No. 4540: No liability is envisaged for repeat commission of the same offense within one year.

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7. Draft Law No. 4475 (V. Kinzburska) (second reading; the Committee recommends that the bill be adopted as a whole) “ON AMENDING SECTION IV ‘FINAL AND TRANSITIONAL PROVISIONS’ OF THE LAW OF UKRAINE ‘ON CONSUMPTION CREDITING’ (REGARDING CREDITS PROVIDED IN FOREIGN CURRENCY)” – the bill provides for mandatory restructuring on the basis of a Law (rather than on the basis of an agreement on restructuring); requires the recalculation of all payment obligations into hryvnias based on the official exchange rate established by the NBU on the day of restructuring; writes off the forfeit (fines, penalties) and the forfeit paid before the restructuring is credited to repay the body of the loan and interest on the loan; the interest rate on the loan used before the restructuring is revised as follows: half of the Ukrainian index of interest rates on 12-month deposits of individuals in the relevant foreign currency; and for periods when the index did not yet exist, half of the NBU refinancing rate; after the restructuring, the rate will amount to the Ukrainian index of rates on 12-month deposits of individuals in hryvnias; after the restructuring, the loan must be repaid within 10 years, the body of the loan will be required to be paid in equal monthly installments; after the restructuring, a three-year ban will be imposed on: compulsory foreclosure on the debtor’s residential property to provide for settling the overdue obligation; registration by the creditor of mortgaged housing as the creditor’s property, sale of mortgaged housing to third parties on the basis of an agreement on satisfaction of the mortgagee’s claims or a relevant clause in the mortgage agreement; these rules are to be applied to all consumer credits granted in foreign currency, which have not been fully repaid.

FOR (+) No. 4475: Protection of borrowers who received consumer loans in foreign currency from abuse by creditors; positive social effect.

AGAINST (–) No. 4475: Preference is given to the protection of debtors regardless of the grounds on which they have failed to fulfill their obligations; the specifics of the restructuring of obligations under foreign currency consumer credit agreements are set out in the draft as permanent rules, although in essence they are temporary; forcible recovery of property is prohibited for 3 years after the restructuring, but the restructuring itself can last up to 10 years; transfer of currency risks to banks only.

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8. Draft Law No. 4398 (T. Tarasenko) (second reading; the Committee recommends that the bill be adopted as a whole) “ON AMENDING CERTAIN LEGISLATIVE ACTS OF UKRAINE ON RESTRUCTURING FOREIGN CURRENCY CREDIT LIABILITIES AND ADAPTATION OF THE PROCEDURES FOR INSOLVENCY OF INDIVIDUALS” – the bill provides for the performance of the procedure of bankruptcy without involving a bankruptcy administrator and for the possibility for the establishment by a court of the minimum amount of repayment of debt on a credit; furthermore, it provides that the Deposit Guarantee Fund will make a proposal to a debtor 30 days before the auction to purchase the debtor’s assets for an amount not less than the estimated value; excludes from the liquidation estate the debtor’s property which consists of housing that is the only place of residence of the family.

FOR (+) No. 4398: Positive social effect, protection of the only housing of individuals against foreclosure; opportunities are created for solving the problem of foreign currency credit by paying fixed amounts over a certain period of time.

AGAINST (–) No. 4398: The bill will suspend the moratorium that was imposed by the Law of Ukraine “On the Moratorium on the Recovery of Property of Citizens of Ukraine Pledged as Collateral for Loans in Foreign Currency,” which expires with the entry into force of the Code of Ukraine on Bankruptcy Procedures; the vagueness of the rules in the bill allows the repayment of a debt precisely in an “amount not less than the estimated value of the asset,” which may significantly exceed the real (market) value; this can lead to abuse and corruption risks; the project seems to be targeted at foreign currency borrowers, but it is formulated in such a way that it will apply to all borrowers; providing courts with the discretion to set the minimum amount of payment per month; unlimited maximum timeframe for establishing such minimum payment.

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9. Draft Law No. 4399 (T. Tarasenko) (second reading; the Committee recommends that the bill be adopted as a whole) “ON AMENDING THE TAX CODE OF UKRAINE (AS TO RESTRUCTURING FOREIGN CURRENCY CREDIT LIABILITIES AND ADAPTATION OF THE PROCEDURES FOR INSOLVENCY OF INDIVIDUALS)” – the bill provides for the recognition of individuals’ debts as bad if such debts remain outstanding when the mortgagee’s claims have been satisfied through acquisition of title to the mortgaged piece of property; also, it provides for exemption from personal income tax on forgiven debt; establishes that the amount of the discount is not an additional benefit, and moreover, income from the sale of residential housing acquired as a result of foreclosure under mortgage agreements secured by foreign currency loans will not be taxed; banks that performed restructuring in accordance with the terms specified in these laws will not adjust the financial result before taxation by the amount of the reduction of the reserves with the gross carrying amount for such existing loans for the amount of partial forgiveness of the loan to be restructured.

FOR (+) No. 4399: Reduction of the tax burden on debtors and optimizing their taxation.

AGAINST (–) No. 4399: The exemption from personal income tax of the entire amount of forgiven debt can be used by individuals to create personal income tax evasion schemes; the bill will have a negative impact on budget revenues at all levels; debt forgiveness should be considered as obtaining a certain material benefit, increasing the taxpayer’s income – and so exemption of the tax payer from taxation is questionable and discriminatory against honest taxpayers who properly fulfill their obligations under loan agreements; the insufficiency of the amount received from the sale of the mortgaged item is not an obstacle to satisfying the claims of the mortgagee at the expense of other property of the debtor, so it is not clear why the project defines this as bad debt – such definition would be fair if it were a situation in which the debtor had no other property.

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10. Draft Law No. 4409 (Cabinet of Ministers) (first reading; the Committee recommends that the bill be adopted as a basis) “ON AMENDING THE CODE OF UKRAINE ON BANKRUPTCY PROCEDURES” – the bill introduces the automated system “Bankruptcy and Insolvency,” expands the sources for payment of remuneration to the bankruptcy administrator (BA) through the sale of the debtor’s property, which is pledged to the bank; adds to the Code on Bankruptcy Procedures a permanent norm on the appointment of a BA at the request of the initiating creditor or debtor – an individual (as of today, an analogous norm is in force under Law No. 86-IX of June 5, 2020, but it is a temporary one, valid until the date of the Unified Judicial Information and Telecommunication System starts to operate); expands the powers of the BA and the restriction of oversight of BAs’ work for creditors, the BAs’ right not only to convene but also to hold a meeting or a committee session of the creditors, the right to determine the terms of sale of the bankrupt person’s property, including in the form of a single property complex or its separate parts; cancels the necessity for the BA to coordinate with the secured creditor the expenses related to maintaining and selling the collateral; a 2-fold increase – from 5% to 10% – of the BA’s fee for the return to the debtor of property held by third parties; changes the order of satisfaction of creditors’ claims, the accumulation on the debtor’s account of funds necessary for full repayment of the claims of same-order creditors – and after that, the satisfaction of those claims within 10 days; provides for the holding of a second re-auction with the possibility of reducing the starting price without determining the marginal value; transfers to the ownership of the territorial community the debtor’s property discovered after the completion of the bankruptcy case.

FOR (+) No. 4409: Aligning the current legislation with world trends; ensuring a unified approach to the application of the norms of the Code; formation of the Unified Register of Debtors, the Unified Register of Bankruptcy Administrators of Ukraine, the functioning of the electronic cabinet of bankruptcy administrators, which eliminates corruption components; transparent collection, storage, search, generalization, provision of information on the progress of bankruptcy proceedings; the possibility to oversee the financial and economic performance of the debtor, which will have a positive impact on the country’s economy, improve the investment climate.

AGAINST (–) No. 4409: Lack of clarity and legal uncertainty of certain norms regarding the functioning of the automates system “Bankruptcy and Insolvency” – in particular, it is not specified which state agency will be in charge of maintaining the system; the conditions for information processing in the said automated system and its protection are not specified either – and this carries risks to the functioning of the whole automated system; there are no norms guaranteeing its co-functioning with the Unified Judicial Information and Telecommunication System; the status of the electronic trading system that will sell property in bankruptcy (insolvency) proceedings is not set out and this will create threats to the effective sale of the debtor’s property; provides that statements of bankruptcy are to be considered in summary proceedings, even though the Code of Economic Procedure says that such cases may not be considered in a summary lawsuit.

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11. Draft Laws Nos. 4416-1 (D. Natalukha); 4416 (S. Labaziuk) (first reading; the Committee recommends that No. 4416-1 be adopted as a basis) “ON AMENDING THE LAW OF UKRAINE ‘ON INDUSTRIAL PARKS’ TO SIMPLIFY THE CREATION AND STIMULATION OF THE OPERATION OF INDUSTRIAL PARKS” – No. 4416-1 specifies the objects that can be located within an industrial park; offers incentives for industrial parks: compensation to management companies, initiators of creation – economic subjects and participants in industrial parks of 50% of the cost of linking and connecting to the electrical grid; compensation to participants in industrial parks for payment of interest on loans depending on the share of exports of own production in the total income from their economic activity (15-30% of exports: reimbursement of 30% of the total amount paid as interest on loans; 30-50% – reimbursement of 50%, ≥ 50% – reimbursement of 50%; ≥70% – reimbursement of 70%); partial compensation of investments of industrial park participants in the creation of production facilities during the first 3 years of economic activity within the industrial park (15-30% of the exports, on the average, during each of the 3 years of activity) – reimbursement of 15% of the total capital costs; 30-50% – reimbursement of 30%; ≥50% – reimbursement of 50%; ≥70% – reimbursement of 70%); allows appropriating land for the construction of industrial parks, as well as changing the intended use of particularly valuable land for the creation and operation of industrial parks; allows removing and transferring the soil cover of land plots without the special permission of the respective central executive body for works related to arrangement, construction, and technical maintenance of industrial parks.

FOR (+) No. 4416-1: Introduction of state incentives for industrial parks, state investment in infrastructure; reduction of costs for businesses at the beginning of operation; reduction of the cost of industrial parks’ connection to engineering networks; creation of additional jobs.

AGAINST (–) No. 4416-1: Legal inconsistency of approaches to the approval of unified requirements of the industrial park concept – resulting in the inability of the authorized state body to specify the exhaustive list of criteria and information that the initiator of the industrial park creation must indicate in the concept; the impossibility to establish special taxation regimes for industrial parks by this Law without making appropriate amendments to the Tax Code of Ukraine; non-compliance with the provisions of the Laws of Ukraine “On Construction Norms” and "On Regulation of Urban Planning Activities” the provisions of which already specify the list of objects that can be placed in the industrial park; appropriation of land and change of intended use of particularly valuable lands; lower budget revenues; the bill requires the NBU to develop a compensation program for the management companies, the initiators of and participants in industrial parks, but the relevant Law does not vest such powers in the NBU; providing for the opportunity to remove soil without the permission of the central executive body; the benefits specified in the law fail to create favorable conditions for all participants in the industrial park – only for those who are exporters.

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12. Proposals of the President to Law No. 3964 (Cabinet of Ministers) (the Committee proposes that the Law be supported with the President’s proposals) “ON AMENDING CERTAIN LAWS OF UKRAINE TO RENAME THE FUND OF SOCIAL PROTECTION OF THE DISABLED AND BRINGING THE TERMINOLOGY IN COMPLIANCE WITH THE LEGISLATION IN THE SPHERE OF SOCIAL PROTECTION OF PERSONS WITH DISABILITY” – the bill is a purely technical one: the name of the Fund of Social Protection of the Disabled will be changed to the Fund of Social Protection of Persons with Disability. Initially, the bill was to take effect on January 1, 2021, but since this is now impossible, the President proposes that it take effect on the next day after the day of its publication.

FOR (+) No. 3964: Bringing the legislation of Ukraine in compliance with the terminology of the UN Convention on the Rights of Persons with Disabilities and the Optional Protocol to that Convention, dated December 16, 2009, as well as with the universally accepted practice.

AGAINST (–) No. 3964: There aren’t any.

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13. Draft Law No. 2415 (President) (first reading; the Committee recommends that the bill be adopted as a basis) “ON AMENDING THE LAW OF UKRAINE ‘ON THE JUDICIARY AND THE STATUS OF JUDGES’ IN CONNECTION WITH THE ADOPTION OF THE LAW OF UKRAINE ‘ON INTELLIGENCE’” – the bill specifies that a Law can establish exceptions when a court hearing a case is obliged to provide for the holding of a meeting in video conference mode; also, it establishes that, for the purpose of implementing the Law ‘On Intelligence’, the president of a court of appeals will act as an authorized judge and transfer such powers to other judges.

FOR (+) No. 2415: Increased support for intelligence measures based on a court decision; implementation of the specifics of consideration by a court of petitions for permission to carry out intelligence measures.

AGAINST (-) No. 2415: No exhaustive list of cases in which a court hearing in a video conference mode must not be conducted for reasons related to intelligence activities; the term “authorized judge” is neither mentioned nor proposed elsewhere in the legislation; the relationship between the terms “authorized judge” and “investigating judge” is unclear.

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14. Draft Law 2689 (second reading, the Committee recommends to adopt it as a basis) ON AMENDMENTS TO CERTAIN LAWS OF UA AS REGARDS THE IMPLEMENTATION OF THE PROVISIONS OF THE INTERNATIONAL CRIMINAL AND HUMANITARIAN LAW - introduces the principle of universal jurisdiction as regards aggression, genocide, crimes against humanity and war crimes ; establishes criminal liability for military commanders, persons actually acting as commanders and other superiors for any crime committed by their subordinate if they knew (deliberately assumed) or should and could have known about them committing a crime / their intention to commit such a crime, etc.

FOR (+) 2689: bringing the legislation of UA on criminal liability in line with the provisions of international law; possibility for law enforcement agencies to qualify crimes in the temporarily occupied territories of UA.

AGAINST (-) 2689: lack of a practical mechanism for implementation of the draft law; introduction of the criminal responsibility of military commanders not for their own actions, and holding them responsible for actions performed by “that guy”.

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15. Draft Law No. 3901 (Cabinet of Ministers) (second reading; the Committee recommends that the bill be adopted as a whole) “ON AMENDING THE LAW OF UKRAINE ‘ON AUTOMOBILE ROADS’” – a technical bill; in the text, references to Laws that are no longer valid are replaced with references to Laws that are currently in force; also, reference to the Law “On Local State Administrations” is added in connection with road management.

FOR (+) No. 3901: Elimination of technical faults in the current legislation.

AGAINST (–) No. 3901: Waste of limited plenary time on minor bills; no systematic approach to changes.

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16. Draft Laws Nos. 5122 (S. Kuzminykh), 5122-1 (D. Solomchuk), 5122-2 (T. Plachkova) (first reading; the Committee recommends that No. 5122 be adopted as a whole) “ON AMENDING ARTICLE 21 OF THE LAW OF UKRAINE ‘ON PHARMACEUTICAL PRODUCTS’ REGARDING PROHIBITION OF SALE OF PHARMACEUTICAL PRODUCTS TO CHILDREN” – No. 5122 prohibits selling pharmaceutical products to citizens under 14 years of age; in case of doubt as to the age of the buyer, the product can be sold upon presentation of a document certifying age.

AGAINST (–) No. 5122: Lack of a comprehensive approach and explanatory work to prevent the situation of uncontrolled abuse of pharmaceuticals by minors; practical impossibility to implement under this bill the ban on the purchase of pharmaceuticals online; pharmaceuticals include antiseptics, vitamins and other products that are completely safe for children, so the ban on the sale of all pharmaceuticals appears to be not quite logical.

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17. Draft Law No. 4382 (L. Bilozir) (first reading; the Committee recommends that the bill be adopted as a basis) “ON AMENDING CERTAIN LAWS OF UKRAINE TO ENSURE THE CITIZENS’ RIGHT TO ACCESS TO STATE REGISTRATION OF ACTS OF CIVIL STATUS IN CONNECTION WITH ENLARGEMENT OF TERRITORIAL COMMUNITIES” – the bill grants the territorial communities created on the basis of cities of oblast subordination the powers in the sphere of state registration of acts of civil status: registration of birth, marriage, death.

FOR (+) No. 4382: Elimination of technical faults in the current legislation; granting such powers to all local self-government bodies; integration of such services in the Centers for Provision of Administrative Services; the possibility to provide such services in starosta districts.

AGAINST (–) No. 4382: The term “city of oblast subordination” is used, but, according to the logic of decentralization of cities, there will not be any such cities upon completion of the reform; therefore, more amendments will be needed later.

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18. Draft Law 4634 (H.Mamka) (first reading, the Committee recommends the adoption of a whole) ON AMENDING ARTICLE 367 OF THE CRIMINAL CODE OF UKRAINE to strengthen responsibility for negligence, if it caused death RIGHTS - complements article 367 paragraph three according to which official negligence, if it caused the death of a person, is punishable by imprisonment for a term of 5 to 10 years with deprivation of the right to hold office or engage in certain activities for up to 3 years and a fine of 34 to 85 thousand uah. or without such.

FOR (+) 4634: increases criminal liability for negligence if it caused the death of a person.

AGAINST (-) 4634: deduces from the notion of "grave consequences" such a consequence of official negligence as "death of a person" by establishing a separate ground for bringing a person to justice.

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19. Draft Law No. 3821 (Cabinet of Ministers) (first reading; the Committee proposes that the bill be adopted as a whole) “ON AMENDING THE LAW OF UKRAINE ‘ON POSTAL COMMUNICATION’ – the bill provides for a legislative definition of “courier communication” (governmental and departmental courier communication within the Armed Forces of Ukraine) as components of postal communication of Ukraine; also, it specifies the provision of courier services in a time of peace and during a special period.

FOR (+) No. 3821: Protection of confidentiality when receiving, processing, transporting, delivering postal items containing classified information.

AGAINST (–) No. 3821: There are several types of post/mail in Ukraine: the official correspondence of the President; of the VRU Chairperson; of the Prime Minister; of state bodies; of local self-government bodies; of foreign diplomatic institutions and diplomatic mail; this can lead to difficulties when applying the Law in practice; the bill is not aligned with the Law “On State Service of Special Communication and Protection of Information of Ukraine.

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EXTRAORDINARY SESSION INITIATED BY 153 MPs FROM THE GROUP “FOR THE FUTURE” AND OTHERS

20. Draft Resolution No. 4042 (A. Poliakov) “ON TAKING URGENT MEASURES AIMED AT ENSURING APPROPRIATE PREVENTION, DIAGNOSTICS AND TREATMENT OF DIABETIC CHILDREN” – the draft entrusts the Cabinet of Ministers with considering the issue of creation and support for the functioning of a system of prevention and diagnosis of diabetes in children; inclusion of screening for diabetes in the annual professional medical examination of children; providing healthcare institutions performing such examinations with instruments for blood collection and measurement of blood sugar at the expense of the State Budget; introduction of international standards of provision of diabetic children with medical assistance; improving the procedure for provision of medications, permanent blood sugar control devices and expendable materials for the sick children at the expense of the Budget. The draft resolution provides for the financing of the above measures.

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21. Draft Resolution No. 4590 (A. Poliakov) “ON TAKING URGENT MEASURES AIMED AT REINSTATING THE PREFERENTIAL TARIFF FOR HOUSEHOLD ELECTRICITY FOR THE FIRST 100 KWH” – the draft entrusts the Cabinet of Ministers with making urgent amendments to the Fixed Prices for Electricity for Household Consumers by establishing a preferential tariff for the first consumed 100 kWh of electricity at the level of 0.9 UAH per 1 kWh (VAT included).

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22. Draft Resolution No. 4609 (T. Batenko) “ON PETITIONING THE CABINET OF MINISTERS OF UKRAINE FOR CANCELING THE UNJUSTIFIED INCREASE IN ENERGY PRICES AND FOR INTRODUCING A ONE-YEAR MORATORIUM ON INCREASING ENERGY PRICES” – the draft proposes introducing a one-year moratorium on the effect of all Resolutions of the Cabinet of Ministers and the National Commission for State Regulation of Energy and Public Utilities (NCSREPU) which provided for an increase from January 1, 2021, in the tariffs for gas, electric power, heating and hot water; developing changes to the 2021 State Budget with expenses to cover the cost of privileges and subsidies; checking the lawfulness and justifiability of the decisions to increase energy prices adopted in accordance with Acts of the Cabinet of Ministers and the NCSREPU; it is recommended that the Cabinet of Ministers and the NCSREPU introduce state regulation of the gas price by approving a fixed wholesale gas price, introduce regulation of the profitability level for services provided by entities performing gas distribution activities, and establish a maximum price for gas distribution services at the level of 2 UAH per 1 cubic meter per month.

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23. Draft Law No. 4576 (A. Skorokhod) (first reading; information on Committee meeting is unavailable) “ON AMENDING CERTAIN LAWS OF UKRAINE TO REGULATE SOME ISSUES IN THE SPHERE OF METROLOGY, PROVISION OF HOUSING AND UTILITY SERVICES AND PROTECTION OF CONSUMERS’ RIGHTS” – the bill makes all providers of utility services responsible for verification of meters; meters will be replaced at the expense of the utility service providers; moreover, the bill provides that consumers have the right to a transparent and accurate registration of the volume of the housing and utility services and that they must pay only for the actually consumed volume of services; also, the bill introduces smart systems for registration of the volume of consumed utility services; the state will create conditions for introducing a competitive market of thermal energy and provide conditions for installing thermal energy distributors on heating devices.

FOR (+) No. 4576: Improving the quality of utility services; the possibility of enhanced control of the quality of such services; protection of the rights of consumers of utility services; guarantee that only the consumed volume of services will have to be paid for.

AGAINST (–) No. 4576: The bill fails to take into account a situation when a provider of utility services has no funds to pay for the replacement of the meters; moreover, absence of compensations for such replacement may lead to inclusion of the price of the new meter in the respective tariff; as a consequence, the tariffs will go up.

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24. Draft Resolution No. 4587 (Y. Yatsyk) “ON PETITIONING THE CABINET OF MINISTERS OF UKRAINE FOR TAKING URGENT MEASURES TO REDUCE THE ELECTRIC POWER PRICES AND THE TARIFFS FOR NATURAL GAS DISTRIBUTION SERVICES” – the draft recommends that the Cabinet of Ministers establish, within three days, a preferential price: for household consumers consuming up to 100 kWh per month, 0.9 UAH per 1 kWh; consumers residing in the 30 km zones of nuclear power plants will pay 70% of the existing tariff; those living in houses with an electrical heating system and off-gas houses, 0.9 UAH per 1 kWH for consumption of up to 3,000 kWh; the tariff for families with many children, adoptive families and residents of family-type houses, will also be 0.9 UAH per 1 kWh; for dormitories using the standard method of payment, also 0.9 UAH per 1 kWh. Moreover, it is proposed that such prices in fact be applied retrospectively, from January 1, 2021 to December 31, 2021.

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EXTRAORDINARY SESSION INITIATED BY 153 DEPUTIES FROM THE "SERVANT OF THE PEOPLE" FACTION, ETC.

25. Draft Law No. 5014 (L. Bilozir) (first reading; the Committee proposes that the bill be adopted as a whole) “ON AMENDING SECTION ІІ ‘FINAL AND TRANSITIONAL PROVISIONS’ OF THE LAW OF UKRAINE ‘ON AMENDING CERTAIN LEGISLATIVE ACTS OF UKRAINE AIMED AT ENSURING ADDITIONAL SOCIAL AND ECONOMIC GUARANTEES IN CONNECTION WITH THE SPREAD OF THE CORONAVIRUS DISEASE (COVID-19)’ (REGARDING CERTAIN USSUES OF COMPLETION OF THE 2020/2021 ACADEMIC YEAR) – the bill releases schoolchildren completing secondary education this year from the summary state attestation; it provides that they can undergo such attestation in the form of external independent evaluation if they wish to do so.

FOR (+) 5014: Granting school graduates the right to decide whether or not they will take the final state examination (FSE) in the form of independent external evaluation; reduction of pupils’ social contacts and of the risk of mass infection with COVID-19; impossibility to organize the FSE remotely; making things easier for pupils who do not need to enter institutes of higher education this year

AGAINST (–) No. 5014: Continuation of what happened last year, when one year was not enough for the Ministry of Education and Science to find appropriate procedures for the traditional conduct of mandatory FSE.

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26. Draft Laws Nos. 4636 (I. Friz) and 4636-1 (A. Ostapenko) (first reading; the Committee proposes that No. 4636-1 be adopted as a basis) “ON AMENDING THE LAW OF UKRAINE ‘ON THE STATUS OF GARRISON AND SECURITY SERVICES OF THE ARMED FORCES OF UKRAINE” – the bill specifies the procedure for the burial and conducting the military burial ceremony with honorary guard in respect of servicepersons who were killed when defending the independence and territorial integrity of Ukraine or when performing military service, who died or were killed in action, ATO or JFO participants, persons with disabilities due to war, and peacekeepers; such a ritual will not be performed in case of persons who died as a result of committing a crime or suicide.

FOR (+) No. 4636-1: The bill updates the procedure of military funeral ritual and the list of categories to which it applies; it provides for a dignified farewell to those who laid down their lives for the independence of Ukraine; it will have a positive social impact on the population, promote greater honor and respect in society for the defenders of Ukraine and have a positive influence on the educational process.

AGAINST (–) No. 4636-1: The Law does not include in the list of categories of persons entitled to be buried in accordance with this procedure the Heroes of Ukraine awarded with the Golden Star Order and persons awarded with the Order of Bohdan Khmelnytskyi or the Order of Courage, although this is provided for by the procedure for conducting such a ritual; in fact, the Law provides for entrusting the President of Ukraine with approving within one month the form and content of the Letter of Honor..

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27. Draft Laws Nos. 5187 (I. Klympush-Tsyntsadze) and 5187-1 (A. Ostapenko) (first reading; the Committee proposes that No. 5187-1 be adopted as a basis) “ON AMENDING CERTAIN PROVISIONS OF LAWS OF UKRAINE ‘ON MANDATORY STATE SOCIAL INSURANCE’ AND ‘ON REHABILITATION IN THE SPHERE OF PUBLIC HEALTH’ TO ENSURE THE EXERCISE OF THE RIGHTS OF INSURED PERSONS” – the bill reinstates the right of insured persons to receive temporary disability allowance in connection with a disease or an injury unrelated to an accident at work, that is, brings the main insurable event back to the general list.

FOR (+) 5187-1: The bill will provide for the exercise of the rights of insured persons to receive sick pay; it will correct the inaccuracy made when adopting the Law of Ukraine “On Rehabilitation in the Sphere of Public Health.”

AGAINST (–) No. 5187-1: The bill is not included in the VR law-drafting plan for 2021.

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28. Draft Law No. 4475 (V. Kinzburska) (second reading; the Committee recommends that the bill be adopted as a whole) “ON AMENDING SECTION IV ‘FINAL AND TRANSITIONAL PROVISIONS’ OF THE LAW OF UKRAINE ‘ON CONSUMPTION CREDITING’ (REGARDING CREDITS PROVIDED IN FOREIGN CURRENCY)” – the bill provides for mandatory restructuring on the basis of a Law (rather than on the basis of an agreement on restructuring); requires the recalculation of all payment obligations into hryvnias based on the official exchange rate established by the NBU on the day of restructuring; writes off the forfeit (fines, penalties) and the forfeit paid before the restructuring is credited to repay the body of the loan and interest on the loan; the interest rate on the loan used before the restructuring is revised as follows: half of the Ukrainian index of interest rates on 12-month deposits of individuals in the relevant foreign currency; and for periods when the index did not yet exist, half of the NBU refinancing rate; after the restructuring, the rate will amount to the Ukrainian index of rates on 12-month deposits of individuals in hryvnias; after the restructuring, the loan must be repaid within 10 years, the body of the loan will be required to be paid in equal monthly installments; after the restructuring, a three-year ban will be imposed on: compulsory foreclosure on the debtor’s residential property to provide for settling the overdue obligation; registration by the creditor of mortgaged housing as the creditor’s property, sale of mortgaged housing to third parties on the basis of an agreement on satisfaction of the mortgagee’s claims or a relevant clause in the mortgage agreement; these rules are to be applied to all consumer credits granted in foreign currency, which have not been fully repaid.

FOR (+) No. 4475: Protection of borrowers who received consumer loans in foreign currency from abuse by creditors; positive social effect.

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29. Draft Law No. 4398 (T. Tarasenko) (second reading; the Committee recommends that the bill be adopted as a whole) “ON AMENDING CERTAIN LEGISLATIVE ACTS OF UKRAINE ON RESTRUCTURING FOREIGN CURRENCY CREDIT LIABILITIES AND ADAPTATION OF THE PROCEDURES FOR INSOLVENCY OF INDIVIDUALS” – the bill provides for the performance of the procedure of bankruptcy without involving a bankruptcy administrator and for the possibility for the establishment by a court of the minimum amount of repayment of debt on a credit; furthermore, it provides that the Deposit Guarantee Fund will make a proposal to a debtor 30 days before the auction to purchase the debtor’s assets for an amount not less than the estimated value; excludes from the liquidation estate the debtor’s property which consists of housing that is the only place of residence of the family.

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30. Draft Law No. 4399 (T. Tarasenko) (second reading; the Committee recommends that the bill be adopted as a whole) “ON AMENDING THE TAX CODE OF UKRAINE (AS TO RESTRUCTURING FOREIGN CURRENCY CREDIT LIABILITIES AND ADAPTATION OF THE PROCEDURES FOR INSOLVENCY OF INDIVIDUALS)” – the bill provides for the recognition of individuals’ debts as bad if such debts remain outstanding when the mortgagee’s claims have been satisfied through acquisition of title to the mortgaged piece of property; also, it provides for exemption from personal income tax on forgiven debt; establishes that the amount of the discount is not an additional benefit, and moreover, income from the sale of residential housing acquired as a result of foreclosure under mortgage agreements secured by foreign currency loans will not be taxed; banks that performed restructuring in accordance with the terms specified in these laws will not adjust the financial result before taxation by the amount of the reduction of the reserves with the gross carrying amount for such existing loans for the amount of partial forgiveness of the loan to be restructured.

FOR (+) No. 4399: Reduction of the tax burden on debtors and optimizing their taxation.

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31. Draft Law No. 4540 (Cabinet of Ministers) (first reading; the Committee proposes that the bill be adopted as a basis) “ON AMENDING THE CODE OF UKRAINE ON ADMINISTRATIVE OFENSES TO PREVENT THE SPREAD OF THE ACUTE RESPIRATORY DISEASE COVID-19 CAUSED BY THE ROCONAVIRUS SARS-COV-2” – the bill provides for administrative liability (a fine of UAH 3,400–8,500) for violating the procedure for self-isolation/observation, if this did not lead to the spread of the disease, and empowers local executive bodies, border guards and police officers to consider administrative liability cases.

FOR (+) 4540: Preconditions for addressing the problem of citizens’ irresponsible attitude towards self-isolation; the bill is likely to lead to a reduction of the rate of spreading of infections.

AGAINST (–) No. 4540: No liability is envisaged for repeat commission of the same offense within one year.

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32. Draft Law No. 5308 (Y. Aristov) (first reading; the Committee proposes that the bill be adopted as a whole) “ON AMENDING THE LAW OF UKRAINE ‘ON THE STATE BUDGET OF UKRAINE FOR 2021’ TO INTRODUCE FINANCE AND CREDIT MECHANISMS FOR PROVIDING CITIZENS OF UKRAINE WITH HOUSING” – the Ministry of Finance is required to issue, based on a Cabinet of Ministers decision, internal government bonds for 20 billion hryvnias with further acquisition by the, in exchange for such bonds, of an additional issue of securities of the PJSC “Ukrainian Financial Housing Company”; in connection with accession of the State Mortgage Institution to that PJSC, the planned amount of internal government borrowing will be increased by 20 billion hryvnias; the bill determines the specifics of termination of the State Mortgage Institution.

FOR (+) 5308: The bill will make it possible to implement the Program “Affordable Mortgage 7%” announced by the President; in the short term, it will be possible to grant 8,000 mortgage credits and purchase 12,000 apartments for subsequent transfer to financial leasing; a unified state institution will be created which will be in charge of providing the population with housing.

AGAINST (–) No. 5308: A significant increase in state debt; no financial and economic justification is provided, in particular with projected calculations of the consequences of the increase in state debt; establishment of a separate procedure for the accession of the State Mortgage Institution to “Ukrfinzhytlo” violates the principle of equality of all subjects of property rights.

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33. Draft Resolution No. 4543-П (S. Velmozhnyi) “ON REVOCATION OF THE DECISION OF THE VERKHOVNA RADA OF UKRAINE DATED MARCH 30, 2021, ON ADOPTION AS A WHOLE, AS A LAW OF UKRAINE, OF DRAFT LAW OF UKRAINE ‘ON AMENDING SECTION V «FINAL AND TRANSITIONAL PROVISIONS» OF THE LAW OF UKRAINE «ON THE PRIVATIZATION OF STATE AND COMMUNAL PROPERTY» REGARDING PRIVATIZATION OF LARGE PRIVATIZATION OBJECTS’” – the Draft Resolution proposes revocation of the adopted Law since it contradicts the economic interests of the Ukrainian people and creates conditions for ineffective sale of state-owned enterprises. However, decisions of this sort can be revoked exclusively because of violation in the course of consideration of the bill of the procedure established by the Rules of Procedure. The dismissal of this Draft Resolution will unblock the signing of the Law by the VR Speaker.

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34. Draft Laws Nos. 5138 (O. Kachura) and 5138-1 (Y. Hryshyna) (first reading; the Committee proposes that No. 5138-1 be adopted as a whole) “ON AMENDING PARAGRAPH 3. SECTION X ‘TRANSITIONAL AND FINAL PROVISIONS’ OF THE LAW OF UKRAINE ‘ON COMPLETE GENERAL SECONDARY EDUCATION’ TO EXPAND THE OPPORTUNITIES FPR TRANSFORMATION OF THE EDUCATIONAL NETWORK AND PROTECTION OF PARTICIPANTS IN THE EDUCATIONAL PROCESS” – the bill provides that the reorganization and liquidation of special institutions of general secondary education (sanatorium and special schools, educational and rehabilitation centers) will only be possible after endorsement by the Ministry of Education; it postpones the transformation/
liquidation of sanatorium schools by one year, until July 2022.

FOR (+) 5138-1: Provision of additional time for the transformation of relevant educational institutions to those founders who have reacted to legislative changes in an irresponsible way; preservation of the property of the liquidated educational institutions and transfer of that property to other relevant educational institutions to improve their material basis for the sake of attainment of education by students.

AGAINST (–) No. 5138-1: Local self-government bodies will lose their right to form an educational network in accordance with the needs of the communities involved without the participation of the Ministry of Education; termination and liquidation of sanatorium schools and sanatorium boarding schools will result in deterioration of the conditions of children requiring correction of physical and/or mental development and long-term therapy with simultaneous education; no guarantee that another delay will be necessary.

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35. Draft Law No. 4210 (Cabinet of Ministers) (first reading; the Committee recommends that the bill be rejected) “ON AMENDING CERTAIN LEGISLATIVE ACTS OF UKRAINE TO IMPROVE THE DEFENSE PLANNING PROCEDURES” – the bill adjusts the definition of the terms “strategic defense bulletin,” “military security strategy” and “defense review”; establishes that the defense review will be the basis for the development of defense planning documents; specifies the definition and content of the defense planning procedure as a function of state administration.

FOR (+) No. 4210: Introduction of a comprehensive approach to and optimization of planning processes in national security and defense.

AGAINST (–) No. 4210: The norms of the bill are of a technical nature and will not have a substantial impact on the defense sector reform, although, according to the authors, it was developed in execution of the President’s Decree “On Urgent Measures to Conduct Reforms and Strengthen the State.”

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36. Draft Laws Nos. 4629 (L. Bilozir) and 4629-1 (S. Koleboshyn) (first reading; the Committee recommends that No. 4629-1 be adopted as a basis) “ON AMENDING CERTAIN LAWS OF UKRAINE TO IMPROVE THE MECHANISMS FOR THE FORMATION OF A NETWORK OF LYCEUMS FOR INTRODUCING QUALITY SPECIALIZED SECONDARY EDUCATION” No. 4629-1 specifies the terms “basic educational institution” and “safe educational environment”; provides the legal grounds for the functioning of a new state institution that will ensure the provision of educational services to children receiving treatment at in-patient facilities; basic educational institutions will provide for obtaining specialized secondary education (previously, primary and basic education was guaranteed); the norms specifying that the development of the network of municipal institutions of general secondary education is to be provided for by the Verkhovna Rada of the Autonomous Republic of Crimea and local self-government bodies are removed – now the network of municipal communal lyceums will be planned and ensured by the Verkhovna Rada of the Autonomous Republic of Crimea as well as oblast and rayon councils; the bill enables representative bodies of communities of all levels to be the founders of lyceums before the planned date of the full launching of the three-year senior vocational school (i.e. until September 1, 2027); also, the bill obliges the Government to continue allocating subvention in 2021-2030 to local budgets for ensuring quality secondary education under the New Ukrainian School reform project.

FOR (+) No. 4629-1: Continuation of the reform of complete general secondary education; development of the education sphere at the level of territorial communities; creating conditions for obtainment of education by children receiving treatment.

AGAINST (–) No. 4629-1: The bill entrusts the authorities of the AR of Crimea with tasks that they will certainly not be able to fulfill; the implementation of the provisions of the project requires a comprehensive update of the bylaws and so the Law will not start working within the established timeframe; the bill provides that a person undergoing treatment will be taught by an institution authorized by the state, but the legal status of such an institution is unclear.