Legislative news digest: LEGAL HOTLINE 15.11.2018

The Law of Ukraine “On electronic trusted services” entered in force

On November 07, 2018, the Law of Ukraine “On Electronic Trusted Services” adopted back in 2017, entered into force.
The said law is aimed at reforming the legislation in the field of electronic digital signature, introduction of mutual recognition of Ukrainian and foreign certificates of public keys and electronic signatures, etc.
Electronic trusted services include:

• creation, verification and confirmation of advanced electronic signature or stamp;
• formation, verification and validation the certificate of electronic signature or seal;
• formation, verification and validation of the website authentication certificate;
• formation, verification and confirmation of the electronic timestamp;
• registered electronic delivery;
• storage of advanced electronic signatures, seals, electronic timestamps and certificates associated with these services.

In order to assure full functioning of the Law of Ukraine “On Electronic Trusted Services”, a number of subordinate regulatory legal acts need to be developed.
In any case, until the legislation is brought into line with the Law of Ukraine “On Electronic Trusted Services”, the laws of Ukraine and other regulatory legal acts are applied to extent that they do not contradict this law.

“MASK-SHOW-STOP” – the new way

On November 04, 2018, the Law of Ukraine “On Amendments to Criminal Procedural Code of Ukraine on Improving Observance of Criminal Proceedings Participants’ and Other Persons’ Rights by Law-Enforcement Bodies in the Course of Pre-Trial Investigation” came into force.
The main amendments foreseen by this law are:

• a new ground for closing criminal proceedings, in particular, if there is an unrepealed decision of the investigator or the prosecutor to close criminal proceedings in criminal proceedings regarding the same investigated act in compliance with the investigative jurisdiction requirements.
• the right to petition for the closure of criminal proceedings in case there are grounds specified in Art. 284 of the Criminal Procedural Code of Ukraine, as well as in case of expiration of the pre-trial investigation period;
• establishing that the state, by reimbursing the damage inflicted by the investigator or the prosecutor, may apply the right of counter demand to these persons in case of establishing in their actions a criminal offense based on the conviction by the court, which entered into force, or a disciplinary offense irrespective of the expiration of the application term and disciplinary action term.

New mechanisms of protecting the banks from unfair debtors

On November 04, 2018, the Law of Ukraine “On Amending Certain Legislative Acts of Ukraine Regarding Restoration of Lending” came into force.
Please be reminded that the main provisions of the said law are:

• increase in the deadline to file a claim to a guarantor up to three years from the date of maturity (term) of the main obligation;
• increase of the guarantor’s liability, in particular in case of change of obligation without the consent of the guarantor, as a result of which the amount of the debtor’s liability has increased, such guarantor shall bear responsibility for violation of the obligation by the debtor in the amount that existed before such change of obligation;
• increase of the creditors’ protection level against unfair debtors, in particular if the mortgagor has reconstructed the mortgage object, or if the mortgage object has undergone unauthorized construction, all reconstructed, newly created real estate objects shall be considered the mortgage object in accordance with the mortgage agreement;
• simplification of the foreclosure procedure, since the presence of encumbrances registered after the state registration of the mortgage, other real rights, including mortgages, regarding the mortgaged property, is not a ground to refuse the mortgage holder’s title registration.

Control over the quality of food products, feed, health and well-being of animals – not more than 4 times a year

On November 06, 2018, the Resolution of the Cabinet of Ministers of Ukraine “Some Issues of Implementing Planned State Control Measures by the State Service for Food Safety and Consumer Protection” came into force, which approved the Procedure for determining the periodicity of planned measures, as well as the criteria for assessing the degree of risk from conducting economic activity.
Planned measures of state control in this area with regard to economic entities will be carried out with the following periodicity:

• economic entities with very high risk – inspection to be carried out no more than 4 times a year, audit – no more than once a year;
• economic entities with high risk – inspection to be carried out no more than 3 times a year, audit – no more than once a year;
• economic entities with average risk – inspection to be carried out no more than twice a year, audit – no more than once a year;
• economic entities with low risk – inspection to be carried out no more than once a year, audit – no more than one time in two years;
• economic entities with insignificant risk – inspection to be carried out not more than once every two years, audit will not be performed.

The criteria for assessing the degree of risk from conducting business activities are:

• certain risks associated with animals, food products, feed, market operators (facilities), use of food products or feed, processes, materials, substances, activities or operations that could adversely affect the safety of food products and / or feed, health and welfare of animals;
• results of implementation of previous state control measures;
• the efficiency of the procedures used by the market operator (capacities) in order to comply with legislation on food products, feed, animal health and welfare;
• information that may indicate that the business is not complying with the requirements of the legislation on food products, feed, health and welfare of animals.