Draft bill 42.

Summary.

The draft bill defines public faith as the state guarantee that facts relevant to the law are true and authentic. It describes public notary offices as offices where declarations, acts, and contracts are received, drawn up, and authenticated when individuals or legal entities must or wish to give them authenticity and public record under the law. Each office would be headed by a public notary, a public servant entrusted by the State with public faith and responsible for the office and for subordinates’ compliance with their duties.

The person requesting a notarial service would pay for it. The Ministry of Government (Ministerio de Gobierno) would set fees and rates by executive decree, and all public notaries would be required to apply them. The State, its institutions, and Municipalities would be exempt from notarial charges. The use, allocation, and management of revenue from notary offices and their services would be governed by the draft bill and its implementing rules.

From each office’s gross revenue, the public notary would pay operating expenses, staff salaries, and taxes under the Tax Code (Código Fiscal). The notary would also appoint and dismiss staff, pay their salaries directly, and set those salaries under the schedule established by the Ministry of Government. All monthly net revenue would be contributed to the National Treasury (Tesoro Nacional). The notary would receive remuneration set under rules issued by the Ministry of Government, capped at five thousand balboas (B/. 5,000.00) per month. Each office’s funds would be deposited and managed exclusively in its own account at the National Bank of Panama (Banco Nacional de Panamá) or the Savings Bank (Caja de Ahorros).

One hundred percent (100%) of the revenue the State receives from those contributions would fund the Disability, Old Age and Death program of the Social Security Fund (Caja de Seguro Social). The Office of the Comptroller General of the Republic (ContralorÍa General de la República) would oversee notary offices to verify their operation, financial statements, and contributions to the State. It could appoint a public servant to conduct oversight within each office. Notary offices would submit audited financial statements annually to the Ministry of Government, which would publish them on its transparency website.

Existing rates, fees, and salaries would apply from the effective date until the Ministry of Government issues the corresponding rules. The Executive Branch would issue implementing rules, and the draft bill provides for entry into force six months after promulgation in the Official Gazette. Its provisions concern the Ministry of Government, the Office of the Comptroller General of the Republic, the National Treasury, the National Bank of Panama, the Savings Bank, and the Social Security Fund, as well as Municipalities, the notarial sector, its staff, and users of notarial services.