Bill 313.

Summary.

The bill seeks to strengthen municipal institutional capacity through an orderly transfer of resources and powers under the District Strategic Development Plan. Its objectives include directing allocated amounts to investment under that plan, improving the use of public resources, encouraging municipal and mixed ownership companies and public-private partnerships, and ensuring the management of funds and transfers from the Executive Branch (Órgano Ejecutivo). It amends Law 37 of 2009, which decentralizes public administration.

The amendment to Article 4 of that law assembles the definitions used in decentralization. It describes fiscal and financial instruments, including the medium-term fiscal framework and financial programming, which forms the basis for annual operating plans and budgets. It links the Government Strategic Plan to Article 16 of Law 34 of 2008 and reserves its preparation to the Executive Branch. It also defines provincial, district and corregimiento (district) plans and their territorial planning, investment, services and annual operating components. It assigns the preparation of each corregimiento's local plan to the Community Boards (Juntas Comunales), with participation by Local Development Boards.

The same article distinguishes non-strategic public services from basic services and includes Guna Yala, Madugandí, Wargandí, Naso Tjer Di and Puerto Obaldía among special territories. It defines the intermunicipal solidarity formula and the components of allocations tied to property tax: the basic, population-based and gross allocated amounts, total surplus and total differential. The bill makes territorial planning a coordinated, mandatory process for competent national, provincial and municipal institutions and ranks its instruments from the Government Strategic Plan to the Local Corregimiento Development Strategic Plan.

For delegated powers, the bill assigns the National Decentralization Authority the resolution of differences between the delegating central government entity and the municipality. It repeals two chapters of Title II of Law 37 of 2009, identified in the bill by Articles 18-A through 18-H. It also defines the Authority as an autonomous administrative entity with its own budget, responsible for carrying out decentralization and promoting local development.

The added functions of the Authority include coordinating policies with ministries and central entities; preparing the National Decentralization Policy for approval by the Cabinet Council (Consejo de Gabinete); assessing, accrediting and certifying municipalities before powers are transferred; and presenting a Five-Year Decentralization Plan with a timetable. Its functions also include coordinating resources, creating and administering the Municipal Training and Education Institute (Instituto para la Capacitación y Formación Municipal), maintaining monitoring systems, overseeing funds and projects, and promoting public participation. On financial management, it must coordinate with the General Treasury Directorate (Dirección General de Tesorería) of the Ministry of Economy and Finance (Ministerio de Economía y Finanzas) on transfers of property tax revenue and assist the Office of the Comptroller General of the Republic (Contraloría General de la República) with manuals governing the use of funds. It also informs local authorities of Executive Branch projects and sends an annual report to the Ministry of the Presidency (Ministerio de la Presidencia).

The bill sets the composition of the Authority's governing board, bringing together ministry officials, the National Assembly (Asamblea Nacional), municipal associations and corregimiento representatives, an Indigenous local authority and organized civil society. It assigns responsibility for chairing and convening the board and providing its secretariat, and provides for participation by relevant institutions according to the powers transferred or delegated. The Authority calls for the selection of civil society representatives; participation requires, among the stated conditions, a legally constituted organization, Panamanian nationality for the candidate and nomination under the organization's bylaws. Public bodies involved include municipal governments, the Executive Branch, the National Decentralization Authority and the planning, treasury and oversight bodies named above. The provisions could concern municipalities, civil society organizations, public service providers and sectors involved in local works and investment.