The draft Organic Law on Economic Efficiency and Employment presented by the President of the Republic, Daniel Noboa Azín, meets the requirements established in the Constitution and the Organic Law of the Legislative Function, hence its qualification as part of the Legislative Administrative Council (CAL).

This conclusion was reached by the Legislative Technical Unit (UTL), which prepared a non-binding preliminary report on the urgent proposal that entered the National Assembly on November 27 and which Parliament has 30 days to approve or reject. CAL has been invited to an electronic meeting this Friday at 19:00 to evaluate the project.

In the UTL report, it is noted that the project relates to one topic, contains a sufficient presentation of reasons, considerations and articles. Also, it is noted that the articles are clearly expressed, and that the project is connected with the National Development Plan and the Sustainable Development Goals.

The urgent economic project contains 38 reform articles of law such as: the internal tax regime, the tax law, the reform law for tax justice in Ecuador, the organic law for economic development and fiscal sustainability, the organic code of production, trade and investment, the labor code, the organic law of property confiscation, law for productive development, investment attraction, job creation and fiscal stability and balance. For this reason, it is recommended to change the name to “Organic Reform Law Project for Various Regulatory Authorities for Economic and Fiscal Efficiency.”

The UTL recommended to the CAL that a Commission for Economic and Fiscal Regime, chaired by legislator Nathali Farinango, from the official bench of the National Democratic Action (ADN), be appointed to handle the urgent project.

The main changes proposed by the emergency project in economic matters are as follows:

Observations as a legislative technique

There are some observations that UTL made to the urgent project. The non-binding report states that the proposal is a mixture of a new law and a reform law, it is important to take into account that each has its own structure and that it is not advisable to combine them as this could cause confusion.

Therefore, it is recommended that in the process of analyzing the norm in the competent Commission, the draft law is proposed as a reform law, and it is suggested that various regulatory bodies be named “Organic Reform Law Project”. Economic and fiscal efficiency”.

When amending different legal bodies, the bill must independently consider its internal structure, since the current law contains titles or headings in its articles, therefore it is recommended to avoid the use of numbered articles and instead use numbering with reference to the number of previous articles and contain letters or numbers for the sake of distinction.

It is also recommended to review the content of the transitional provisions, because they must be linked to the mandate of mandatory compliance in a certain period of time, which facilitates the transition from the previous state to the legal regime provided for by the new regulation.

Likewise, it is recommended to include a transitional provision that enables the adaptation of by-laws related to the text that is intended to be approved, in order to protect the right to legal certainty and regulatory guarantees.