Bill 21.

Summary.

The bill establishes rights, duties and benefits for artists, arts workers and entertainment workers, whether union members or not, who are Panamanian or foreign nationals lawfully established in Panama. It applies to activities within categories used by the Ministry of Culture (Ministerio de Cultura) and defines artists, promoters, employers, international performances, artistic service contracts, alternation with domestic talent, entry fees and folklore acts. Artistic work would constitute employment where economic dependence and legal subordination coexist under the Labor Code (Código de Trabajo). The bill recognizes social security coverage and directs the Social Security Fund (Caja de Seguro Social) to set enrollment conditions. It requires contracts for domestic events, registration with the Ministry of Labor and Labor Development (Ministerio de Trabajo y Desarrollo Laboral), and delivery of a registered copy to the artist.

Domestic performances would have at least 75% Panamanian artists, including technical personnel, with the remaining 25% available to foreign nationals lawfully established in the country. The bill provides exceptions for trios and duos and reserves solo performances for Panamanian nationals. It provides equal treatment for lawfully established foreign workers and requires a temporary permit for certain performances. Tax benefits for venues are governed by the Tax Code (Código Fiscal). International performances would require proportionate participation by domestic talent and a folklore act, under Law 86 of November 22, 1960. The bill sets domestic participation levels for profit-making events and approval and documentation requirements for nonprofit and charitable events. Cultural exchanges require certification from the Ministry of Foreign Affairs (Ministerio de Relaciones Exteriores) and disclosure of their financial terms.

Contracts for international performers and participating domestic talent would require administrative approval, identification of performers, performance terms and proof of payment. Documentation must be filed at least 15 calendar days before the performance; applicants may have no more than 5 business days to correct a filing. The bill sets minimum fees for participating domestic talent according to venue capacity, along with minimum participation and fees for the folklore act. It also requires payment of 15% of the foreign engagement’s value and an entry fee of B/. 40.00 for each covered member. The Ministry of Labor and Labor Development would send contracts to unions covered by Law 10 of 1974 for comment. Objections to a declared contract value would go to the Technical Appraisal Board (Junta Técnica de Peritaje), coordinated by the General Directorate of Revenue (Dirección General de Ingresos). The bill provides for inspections, suspension of unauthorized performances and administrative appeals under Law 38 of 2000.

Working hours, rehearsals, preparatory activities and employment benefits are tied to the Labor Code and regulations on special working hours. Contract payments would be divided into 50% on signing and 50% before the event, including where an event is canceled for reasons beyond the artist’s responsibility. The bill creates the Social Benefits Fund for Artists, Arts Workers and Entertainment Workers (Fondo de Derechos Sociales del Artista, Trabajadores del Arte y del Entretenimiento) to cover vacation pay, the thirteenth-month payment, compensation and other entitlements. The fund would have individual and common assets, receive contributions arising from contracts and be administered through a trust selected by public tender. The bill also creates the National Council of Artists, Arts Workers and Entertainment Workers (Consejo Nacional del Artista, Trabajadores del Arte y Entretenimiento), attached to the Ministry of Culture, to issue professional certifications, review rates and supervise the fund. Regional technical boards are contemplated.

For carnivals, the bill provides public funding for artistic services, organizational rules for the Carnival Board (Junta de Carnaval) and municipalities, financial reporting, contracts and payment of fees. It sets quotas for domestic works on radio and television, identification of artists and authors, programming on official media and rules for foreign television appearances. Paid exclusivity and commercial use of an artist’s image could be agreed in writing, subject to Law 81 of March 26, 2019. Further provisions address union financial reports, minors’ contracts under the Family Code (Código de la Familia) and Law 285 of 2022, promoter records, regional folklore at tourism events, and arts education involving the Ministry of Education (Ministerio de Educación) and the Ministry of Culture.

Violations would incur fines and, for repeated violations, suspension of activities; the General Directorate of Labor (Dirección General de Trabajo) would impose financial penalties. The bill amends Law 10 of January 8, 1974, adds provisions to Law 86 of November 22, 1960, and amends Executive Decree 6 of April 13, 2023. It also provides for union representatives to accompany migration procedures and inspections. Its provisions could affect promoters, performance venues, broadcasters, trust companies and unions, alongside public bodies responsible for labor, culture, education, social security, revenue, migration and tourism.