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Senate adopts Law on transfer of state functions to competitive environment

12 April 2019
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 The Senate of the Parliament of the Republic of Kazakhstan has adopted the Law “On introducing amendments and addenda to some legislative acts of the Republic of Kazakhstan on the transfer of state functions to the competitive environment” at the plenary session.

The law was developed by the Ministry of National Economy of the Republic of Kazakhstan jointly with the Atameken National Chamber of Entrepreneurs within the framework of implementation of Step 97 of the Nation's Plan - 100 concrete Steps.

The adoption of this law is aimed at the formation of clear and conceptually sound guidelines for creating an accountable, transparent and compact Government.

Thus, the law stipulates basic approaches to the transfer of state functions to the competitive environment, including means of transfer, such as outsourcing, state order, government order, mandatory self-regulation.

There is a mechanism for such a transfer in several stages:

Stage 1. The annual selection of the functions of state bodies for transfer to the competitive environment and inventory of government functions (responsible government agency);

Stage 2. Publication of the list of functions on the official websites of the Ministry of National Economy and the Atameken National Chamber of Entrepreneurs to seek potential suppliers;

Stage 3. Conduct market readiness analysis and / or regulatory impact analysis (depending on the mode of transfer);

Stage 4. Legislative consolidation of the transfer of state functions to the competitive environment.

Under the Law of the National Chamber of Entrepreneurs is empowered to coordinate the work of business entities and their associations on the transfer of state functions. Thus, after the adoption of the law, the transfer of the state agencies’ functions to the competitive environment will be systematically built on an annual basis.

In the near future, the law will be sent to the President for signature.

It should be noted that the Department of Legislation and Development of Self-Regulation will be responsible for the implementation of the law in the National Chamber. In addition, the law establishes the powers and status of the Commission on the transfer of state functions to the competitive environment under the Government of the Republic of Kazakhstan. The Commission has already formed three groups of functions for transfer to the competitive environment.

Read more information about the list of functions here.

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