Summary.
The bill’s stated purpose is to prohibit the use of public resources to purchase or pay for private medical, life or other insurance for public officials. The prohibition would cover state entities, branches, enterprises and agencies at every level and in every form. Its scope includes officials, employees and other public servants working in the public sector, including the Executive, Legislative and Judicial branches, ministries, autonomous and semi-autonomous entities, state enterprises, municipalities, community boards and any other agency that administers public funds.
For purposes of the proposed law, a public official is anyone who performs functions on behalf of the state or has an employment or contractual relationship with a public entity, regardless of position, title or method of appointment. Private insurance means any policy or contract with a private insurer that covers personal risks for public officials, including health, life and accidents. Public funds include financial resources originating from the National Treasury (Tesoro Nacional), taxes, fees, contributions, state donations and other public sources. These definitions determine the people, insurance arrangements and sources of financing addressed by the following provisions.
In its chapter on prohibitions, penalties and the reallocation of resources, the bill prohibits the purchase of private insurance for public officials of public, autonomous and semi-autonomous entities, branches of the state, centralized and decentralized institutions, and municipalities. The prohibition concerns purchases using the public resources defined in the bill. Its scope turns on both the source and use of the funds and the status of the policy or contract beneficiaries. It covers medical and life insurance as well as other private insurance against personal risks for those officials.
A public servant who authorizes, arranges or carries out a purchase of private insurance with public funds in breach of the proposed law would face a fine equivalent to three hundred (300) day-fines. The bill also provides for a possible prison sentence of up to three (3) years, according to the seriousness of the violation. Funds allocated in the General State Budget for private insurance for public officials would have to be redirected exclusively to investments in infrastructure, medical equipment and supplies for the health sector, and to strengthening the national education system. The final provision states that the proposed law would take effect on the day following its promulgation.
The public bodies concerned include the branches of the state, ministries, autonomous and semi-autonomous entities, state enterprises, municipalities and community boards. The bill identifies the National Treasury (Tesoro Nacional) as a source of public funds. Because of the specified use of the redirected funds, the provisions may also concern the health sector and the national education system, as well as private insurers associated with the policies covered by the prohibition.
What it proposes.
- Purchase and payment of private insurance with public funds.
- Penalties for purchases that breach the prohibition.
- Reallocation of budgeted resources to health and education.
Who it would affect.
- Public officials, employees and other public servants.
- State entities, branches, enterprises and agencies that administer public funds.
- Public servants who authorize, arrange or carry out private insurance purchases.
Key points.
- Proposes to prohibit the use of public resources to purchase or pay for private insurance for public officials.Art. 1
- Extends the scope to public servants in the Executive, Legislative and Judicial branches and the other listed public agencies.Art. 2
- Defines public official, private insurance and public funds; the latter include resources from the National Treasury (Tesoro Nacional).Art. 3
- Prohibits the purchase of private insurance for officials of public entities, branches of the state and municipalities.Art. 4
- Provides for three hundred (300) day-fines and a possible prison sentence of up to three (3) years for a public servant who authorizes, arranges or carries out a prohibited purchase.Art. 5
- Requires funds budgeted for those policies to be redirected exclusively to health-sector investments and the strengthening of the national education system.Art. 5
- Provides that the proposed law would take effect on the day following its promulgation.Art. 7