Regulatory Reform

Regulatory Reform - Act

Act
on rules for government monitoring activities
1999 no. 27, March 18

Art. 1

This Act covers regulations concerning special monitoring by public bodies of private and commercial activities, including rules aimed at the promotion of public safety and health, safety of property, environmental conservation, consumer protection, competition, normal business practices and the ability of companies and financial institutions to meet their obligations.
The Act does not cover administrative monitoring and internal audits by public bodies, among them financial monitoring, law enforcement, customs enforcement and monitoring in connection with taxes and public duties, family relationships, protection of children and young people, probation and the postponement of criminal charges.

Art. 2
The objective of this Act is that public monitoring shall promote national well- being, public safety and health, safety of property, environmental conservation, normal business practices and consumer protection. Monitoring by public bodies shall be non discriminatory and shall not restrict entrepreneurial freedom unless demanded by the public interest.

Art. 3
When monitory regulations are compiled or public monitoring activities are set up, the relevant ministry shall assess the need for them, their value and cost to the community. Such an assessment may address, among other things, risks, international obligations regarding surveillance, the cost to public bodies, companies and private individuals, the possibility of achieving the same results by more economical means, or the macroeconomic value of such monitoring.

When a government bill which includes provisions for monitoring is presented to the government, it shall be accompanied by an assessment report in accordance with Paragraph 1. Furthermore, such reports shall have been made when this kind of rules on monitoring are ratified in other cases.
The Prime Minister shall specify rules for assessment of the regulatory framework for monitoring activities and for procedures which should be adhered to as closely as possible during drafting of Acts and regulations.

Art. 4
Regulations on monitoring shall be in effect for a limited period of time or contain review clauses. The maximum period of effect for a regulation or maximum period of validity for a review clause shall be five years. Drafting, extension and review of monitoring regulations shall comply with the provisions of Paragraphs 1 and 3 of Art. 3. The government authorities shall maintain a complete register of all the monitoring regulations which they set. The register, and announcements of changes to it, shall be submitted to the office of the Prime Minister, and be available for inspection by the public.

Art. 5
The office of the Prime Minister shall:
1. Have an overview of monitoring regulations and undertake a total assessment of their impact and that of monitoring by public bodies;
2. Seek to ensure the necessary co-ordination and efficiency in monitoring by public bodies;
3. Formulate procedures for assessment of monitoring by public bodies.

Art. 6
The Prime Minister shall appoint a consultative committee on monitoring by public bodies and the implementation of this Act. The committee shall be comprised of five members who have knowledge of public ,monitoring or the tasks it addresses. The majority of committee members shall not be employed in or bear responsibility for public monitoring regulatory activities. The committee's term of appointment shall be three years.

Parties subject to monitoring and any others with vested interests in public monitoring may request the committee to examine specific aspects of it. Ministers may refer matters concerning public monitoring to the committee. At the same time, the committee may take the initiative in checking certain aspects of monitoring activities.

The aim of the committee's work shall be that the regulatory framework for public monitoring is consistent with the provisions of Art. 3 and that public monitoring is always as economical as possible for the companies and individuals subject to it, and for the government. The committee may propose recommendations to the Prime Minister and other ministers for a review of the regulatory framework for monitoring. The Prime Minister may issue a regulation specifying in detail the committee's organization and work.
Art. 7
The Prime Minister may issue a regulation specifying more detailed provisions about the implementation of this Act.

Art. 8
Every three years on the average, the Prime Minister shall present a report to the Althingi on the impact of this Act, the work of the consultative committee and other related matters.

Art. 9
This Act enters into effect immediately.

Provisional clause
The Ministry shall draw up a plan for reviewing current legislation and regulations on public monitoring. This review shall include an assessment of the regulatory framework in accordance with the provisions of Art. 3.