The draft law On Amending Article 16 of the federal law On Social Security for Invalids in the Russian Federation and Article 46 of the Budget Code of the Russian Federation was submitted by State Duma Deputy Alexander Lomakin-Rumyantsev.

In accordance with Part 3 of Article 104 of the Russian Constitution the Government of the Russian Federation has reviewed the draft federal law, taking into account the submitted financial feasibility study.

The draft law proposes that amendments be made to Part 2 of Article 16 of the federal law On Social Security for Invalids in the Russian Federation, hereinafter referred to as the Law, according to which all proceeds from fines for failing to comply with requirements to create barrier-free access for disabled people to engineering, transport and social infrastructure facilities, as well as to allow the uninhibited use of railway, air, water and inter-city road transport, and all kinds of urban and suburban passenger transport, communications and information means, should be transferred to local budgets rather than to the federal budget under the legal norm currently in force.

The draft law at the same time makes provision for appending Subparagraph 6³ to Clause 1 of Article 46 of the Budget Code of the Russian Federation, hereinafter referred to as the Code, which states that the financial penalties (fines) for failing to comply with the requirements to create barrier-free access for disabled people to engineering, transport and social infrastructure facilities should be charged to local budgets at the rate of 100 percent.

It should be noted that the proposed wording of Part 2, Article 16 of the Law is inconsistent with the provisions of the Code, including Article 1 thereof, which states that relations between the subjects of budget legal relations in the process of forming revenues and executing expenditures of the budgets in the budget system of the Russian Federation, implementing state and municipal borrowing, and regulating state and municipal debt are covered by legal relations regulated by the Code.

According to Subparagraph 7, Clause 1, Article 46 of the Code, proceeds from financial penalties (fines) at the rate of 100 percent go to the budgets of municipal districts, urban areas, and cities of federal importance (Moscow and St Petersburg) in accordance with the jurisdiction of the body or person who made the decision on imposing the financial penalty (fine) for violations of laws of the Russian Federation which are not covered by Clauses 1-3 of the aforementioned article  of the Code. 

These clauses of Article 46 of the Code do not contain any reference to the legislation of the Russian Federation on social security for invalids. Therefore, the budget legislation of the Russian Federation already regulates issues of distributing proceeds from financial penalties (fines) for violating the Russian legislation on social security for disabled people, and the proposed amendment to the Code is not needed.