The reform in licensing sphere Georgian government offers us another reformGeorgian government offers us another reform

Lali Chagelishvili

In June 2005 the Georgian parliament considered the bill on “licensing and permissions”. The above-mentioned bill simplifies the order of licensing. Types of licensing are determined in it. They are as follows: license for use, license for activities, general license, and special license.

According to the bill, which is based on “one window” principle, the administrative body that issues permissions provides authorization of additional license and permission terms issued by other administrative bodies. If the administrative body does not issue a license or a permission during the period envisaged by the law, or does not present a refusal based on law, the additional terms will be considered as approved.
On June 27, 2005 the Georgian government passed a decision on “licensing and permissions”, as well as on setting up a coordinating commission, and the implementation of the arrangements related to the passing of the law. The decision envisages setting up of 17 member coordinating commission for the implementation of the arrangements related to the passing of the law on “licensing and permissions”. It is also stated here that Georgian Ministry of Labor, Public Health and Social Welfare, Environmental Protection and Natural Resources Ministry, the Ministry of Internal Affairs, the Ministry of Culture, Monuments’ Protection and Sports, the Ministry of Economic Development, the Ministry of Energy, the Finance Ministry, the Ministry of Justice, the Ministry of Agriculture, and the Ministry of Education and Science should prepare a detailed action plan for the implementation of the law on “licensing and permissions” from the viewpoint of both structural and organizational administration, and preparation of changes in the legislation.
Till October 15, 2005 the ministries mentioned in this decision, together with the commission, should work out the projects of changes of legislative acts related to the passing of the law on “licensing and permissions” and submit them to the Georgian government; during the same period they should submit to the Georgian government the projects of legislative acts regulating the activities incorporating public risks. At the same time, till October 1, 2005 Georgian Ministry of Agriculture, the Ministry of Labor, Public Health and Social Welfare, and the Ministry of Economic Development should submit to the commission simplified rules and terms of food enterprises’ activities.
In connection with passing of the law on “licensing and permissions” the coordinating commission is guided in its work by the decisions and instructions of the Georgian government and based on the statute on the coordinating commission. Here the commission’s basic tasks and rights are determined according to which the commission should provide elaboration of projects of legislative and sublegislative standard acts by separate ministries and departments within the due period of time, and present corresponding projects and conclusions related to the above-mentioned activities to the Georgian government; it also entitled to demand any necessary information and give tasks to the respective services.
It is difficult to say how the law on licensing based on “one window principle” will be justified in future. It cannot be said based on the above-mentioned document since it does not give any concrete information except for the names of the 17 people who will be the members of the coordinating commission, and we do not mention them for one simple reason: we do not want to distract your attention because of such small thing.
Based on familiarization with the above-mentioned document and on the fact how licensing has been implemented in Georgia so far, we just want to remark that activation of the decision and the activities based on it will not bring us the novelty which is worth wasting of time in relation to our budget.
After familiarizing with the clauses of the statute on the coordinating commission for the implementation of the arrangements related to passing of the law on “licensing and permissions” (general provisions; the commission’s main tasks and rights; the leadership of the commission; the order of the commission’s decision making; organizational and technical provision of the commission; the order of introduction of amendments and addenda in the statute) I come to a conclusion that our public administration is still far from the modern administration methods.
Now as to the remarks that we have concerning the above-mentioned law:
1. Article 3, Clause E – it is absolutely unclear from the given explanation how flexible the “one window principle” is, and what is more, how it will be justified in conditions of our administrative system.
2. In spite of the enumeration of activities licenses and use licenses given in the Articles 6 and 7 respectively, many other kinds that are implemented in the country’s territory are not mentioned (essential food stuffs and household goods trade; the activities of services sector’s units, etc.); it is not clear whether they are prohibited at all, their operation without licenses and permissions is allowed or there are some other terms?
3. Article 10, Clause 10 – what does an increased danger to human life and health mean? Danger may or may not exist, and if it is exists it must be eradicated from the very onset. It is inadmissible to measure the scale of danger or wait till it will become a large scale one in so that not to grant or cancel a license or permission. Clause 13 is very feeble on the whole and it needs to be changed.
4. Article 19 – it is inadmissible for a license issuer to establish the initial price of use license’s granting, as well as the order of calculation. It must be determined in the law on “license and permission duties” and the issuer of licenses should adhere to it.
5. Article 22 – Article 37. Here the responsibility of the recipient of the mentioned license is justly indicated everywhere, but the responsibility of license issuer in case of breaching the law comes to transferring of the delinquent official to a lower post.
6. It is not clear either what will happen if a license issuer will grant a license that is not envisaged by law. Will he be just downgraded?
7. It must be noted here that Mr. Zurab Tskitishvili’s anxiety concerning elimination of food stuffs licenses is fully justified, however as to simplification of license granting rules, further practice will show us how and for whom it will be simplified, as they say “do not count the cheeks until they are hatched”, so let us wait for the autumn when the ministries indicated in the decision together with the coordinating commission will submit to the Georgian government the projects of changes related to passing of the law on “licensing and permissions”.