Important Draft Laws. Issue 30: Liquidation of MSECs, Funeral Services Reform, and Unified Digital Recovery Platform

Important Draft Laws. Issue 30: Liquidation of MSECs, Funeral Services Reform, and Unified Digital Recovery Platform

21 November 2024
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A review of bills registered from October 28 to November 10, 2024. 

During this period, 38 draft laws were registered: two on the extension of martial law and mobilization from the President, eight from the government, and 28 from MPs. Legislative proposals include liquidating the Medical and Social Expert Commissions (MSECs), introducing competitions for leadership positions in the police, managing mining industry waste, allowing private individuals to enter the burial services market, and implementing international requirements for transporting perishable goods. Read more about this and other topics in this overview.

New law on mining industry waste management 

Ukraine is obligated to implement a waste management system aligned with 2006/21/EC and 2004/35/EC, as well as the National Waste Management Plan until 2030. Draft law No. 12180 encompasses all processes related to waste management generated during the extraction of minerals, specifically transportation, storage, processing, and disposal of such waste, as well as monitoring environmental safety at sites where this waste is located. The law does not apply to radioactive waste, waste produced within the continental shelf, Ukraine’s exclusive (maritime) economic zone, or specific other categories.

The mining industry accounts for approximately 70% of all waste in Ukraine, produced during the extraction, enrichment, and processing of minerals. Mining enterprises that generate waste (operators) must ensure environmental safety, properly operate their waste storage or disposal facilities, and carry out post-operational measures. 

All entities involved in the mining industry waste management would be required to comply with safety standards, implement the best available technologies, eliminate waste after the decommissioning of facilities, and carry out land reclamation. According to the bill, operators must have financial security (guarantees) to cover expenses related to potential risks and the need to reclamation waste storage sites. They must allocate funds to a particular account or use bank guarantees, insurance, surety, or collateral to comply. These funds would be used in the event of an accident or to cover reclamation costs, even if the company is no longer operational.

To obtain a waste management permit, a potential operator must prepare a waste management plan—a document listing environmental safety measures and detailed instructions for all stages of activities, from storage and transportation to waste disposal and land restoration after operations are completed. 

The Cabinet of Ministers of Ukraine and state and local authorities would be required to account for abandoned mining facilities, establish regulations for managing such facilities, oversee the implementation of these regulations, and appoint operators for their management. An operator of an abandoned facility can be a state institution (an enterprise under the management of the Ministry of Environmental Protection and Natural Resources) or an investor who, under a production-sharing agreement, would manage mining industry waste at the abandoned site.

A production-sharing agreement is a contract in which the state permits an investor to extract minerals. The investor assumes the costs and risks, committing to adhere to safety and environmental standards. In return, the investor receives a share of the extracted product.

The bill introduces a mandatory risk management system that includes assessing potential hazardous situations. Operators would be held accountable for any harmful environmental and public health impact from improper waste management. State authorities would have the right to halt the operations of facilities that do not comply with safety requirements.

The adoption of this draft bill will help mitigate environmental issues. However, it will also increase the expenses of mining enterprises, which will need to ensure their activities have a reduced environmental impact. To implement the provisions of this bill, the government will need to prepare more than 20 subordinate regulatory acts. 

New burial rules: more rights for private businesses and protection of information about the deceased

Bill No. 12188 proposes comprehensive changes in burials and the establishment of cemeteries. It stipulates that cemeteries and crematoria may be owned by the state or municipalities and privately. The bill also proposes allowing the burial of pets in designated sections of cemeteries.

The bill suggests introducing special regulations for allocating land plots for new cemeteries or crematoria. Such state-owned or municipality-owned plots must be transferred exclusively through land auctions (currently, plots for cemeteries are assigned by local councils solely to specialized municipal enterprises for permanent use). Additionally, land plots already housing municipally-owned cemeteries or crematoria cannot be privatized or leased to individuals or legal entities.

The draft law defines a special status for the National Military Memorial Cemetery. This cemetery would be state-owned, located on state land, and not be subject to privatization or lease. The site for it would be selected considering the public interest, and the results of public discussions may serve as grounds for local authorities to initiate or refuse the preparation of relevant documentation. The state budget would cover the costs of honorable burials at this cemetery. The draft law proposes prohibiting the burial of individuals who held leadership positions in the Communist Party or Soviet bodies, as well as employees of Soviet security agencies. Cenotaphs (memorial markers) for honoring defenders of Ukraine declared deceased by the court who defended Ukraine’s independence and territorial integrity may be installed at this cemetery.

The bill proposes several restrictions on advertising funeral services, including prohibiting the display of the funeral process or items used in this process, banning such advertisements on products and in printed publications aimed at minors, and within 300 meters of educational institutions, children’s centers, hospitals, military units, and sites of historical and cultural heritage. 

Bill No. 12189 proposes the cancellation of VAT exemptions for operations of the state and municipal funeral services related to burials. It also suggests abolishing the simplified tax system for funeral service providers.

Bill No. 12190 proposes amendments to the Criminal Code of Ukraine to protect information about deceased individuals. Specifically, it aims to establish liability for intentionally disclosing confidential information about a deceased person or their relatives if it became known through professional or official activities. The proposed punishment is a fine ranging from 1,000 to 4,000 non-taxable minimum incomes of citizens (UAH 17,000-68,000), along with the disqualification from holding certain positions or engaging in certain activities for up to three years (neither the bill nor accompanying documents detail which specific positions or activities would fall under this provision). 

Ukrainian certification of vehicles transporting perishable goods

Bill No. 12182 proposes the introduction of certification for vehicles transporting perishable goods. This certification would comply with the Agreement on the International Carriage of Perishable Foodstuffs requirements, which Ukraine joined in 2008. Specialized freight vehicles, known as  “isothermal vehicles” (those that prevent heat exchange to ensure products remain fresh during transport), would undergo inspection in Ukraine rather than abroad, as is currently the case,  and receive the corresponding certificate. This inspection would be registered with the United Nations Economic Commission for Europe, and the certificate issued in Ukrainian and English would be recognized internationally.

Abolition of MSECs and implementation of new approaches

The government bill No. 12178 proposes replacing the system of Medical and Social Expert Commissions (MSECs) with a new system—Assessment of Everyday Functioning of an Individual (AEFI), shifting the focus from the formal status of disability to what functions a person can perform considering their health condition.

The government aims to fully replace MSEC with AEFI starting January 1, 2025. The new system will abolish medical advisory commissions (MACs). The treating physician or military doctor could refer a patient for AEFI. AEFI would be conducted by expert teams of practicing doctors in cluster and supra-cluster hospitals. These are facilities where multidisciplinary teams work and can provide comprehensive medical examinations and rehabilitation. Such hospitals have the necessary specialists (surgeons, therapists, psychiatrists, traumatologists) and equipment to conduct required assessments. If someone cannot travel to the hospital, the assessment could be performed remotely, or the team could visit the individual at home (funded by the medical institution). Expert teams could establish a disability group or send the person for additional examinations. 

During in-person assessments of everyday functioning, individuals could involve a representative, such as a doctor or a lawyer, to assist with case explanations. The expert team would have to ensure video or audio recording of the AEFI; the patient or their representative may also make their recording. The decision of the expert team could be appealed through administrative means (by filing a complaint with the management of the medical institution) or through the courts.

A key element of the new system is complete digitization: all an individual’s medical data would be accessible in the electronic healthcare system (eHealth), and doctors could send referrals for AEFI electronically. The decision made by the expert team would automatically be sent to the Unified Social Information System. Thus, individuals would no longer need to collect documents themselves. 

Based on the data entered into eHealth, doctors would determine the patient’s functional limitations, considering physical, mental, intellectual, and other aspects. After the assessment, the individual would receive a personalized rehabilitation program that includes medical care and social, occupational, and educational services to aid in returning to everyday life. All procedures would be conducted in a single hospital, reducing patient stress and the time needed to receive services.

Increase in childbirth benefits

Bill 12184 proposes a significant (over sixfold) increase in state assistance for families upon childbirth. The payments would be tied to the subsistence minimum for a child. Currently, families receiving childbirth assistance receive UAH 41,280 UAH. UAH 10,320 will be provided immediately, and the rest will be paid in equal installments over the next 36 months. The bill proposes increasing the payment per child to 105 times the current subsistence minimum for a child (currently UAH 2,563), which amounts to UAH 268,115. An initial payment of 25 subsistence minimums (UAH 64,075) would be provided, with the remaining UAH 204,040 distributed in equal installments over three years.

The funding for such increased payments is proposed to come from optimizing state budget expenditures. If the bill is passed, the government must account for these changes by reducing non-critical expenditure items when drafting the 2026 budget.

It should be noted that in 2023, 187,000 children were born in Ukraine, so if this law had been in effect at that time, the additional costs would have exceeded UAH 42 billion. It is doubtful that the state has such “extra” funds available. 

Unified state digital system for Ukraine’s recovery

Bill 12154 proposes creating a Unified State Digital System for Ukraine’s recovery and development. This system aims to automate the management of construction projects, infrastructure restoration, and territorial planning and provide access to statistical data for monitoring and reporting. A separate digital platform for reconstruction management is planned within this system to facilitate project monitoring and ensure efficient financial use.

The bill also seeks to enhance coordination among regional development agencies by requiring them to align their plans with the Ministry of Recovery and submit annual activity reports. These reports would utilize data from the newly established Unified State Digital System.

Public participation in the certification of candidates for police leadership positions

Bill No. 12159 introduces mandatory competitions for police leadership positions (currently, competitive selection is only conducted for those entering police service for the first time in junior positions). Certification commissions would select leadership roles, with at least 25% of the commission members representing the public. These commissions would evaluate the effectiveness, professionalism, personal qualities, and integrity of the candidates for leadership positions.

The assessment of leadership qualities would be conducted through an electronic personnel management system, with the results published on the official police website and considered in personnel decisions. The Ministry of Internal Affairs would determine the integrity criteria and the list of leadership positions for which appointments would be made through competition. 

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