Bill 460.

Summary.

The bill proposes to recognize the work of street vendors and regulate their activity through municipal action with national support. It defines a street vendor as a natural person who sells goods at retail on public roads or in other open spaces, without a permanent establishment and with municipal authorization. Its application would follow principles of dignity, equality, due process, gradual formalization and the reconciliation of work with safety, public health and the use of public spaces.

It creates a National Registry of Street Vendors administered by the Ministry of Commerce and Industries (Ministerio de Comercio e Industrias), in coordination with mayoral offices. Registration would be voluntary and would provide access to the proposed benefits. Mayoral offices would issue registered vendors a renewable permit card valid for two (2) years. Municipalities would provide vending areas with basic services in coordination with the National Institute of Aqueducts and Sewers (IDAAN), the Ministry of Health (MINSA) and the Consumer Protection and Competition Defense Authority (ACODECO); the latter two would oversee sanitary conditions and consumer protection, respectively.

The bill would bar the eviction of a registered vendor without a prior Municipal Relocation Plan. It restricts eviction to justified public interest grounds and requires at least three (3) months’ notice, an equivalent or better site, temporary alternatives if no immediate site is available, and possible assistance during the transition. Vendors would have to comply with sanitary and consumer protection rules, observe assigned hours and areas, maintain cleanliness and carry a valid permit card.

Municipalities, together with the Authority for Micro, Small and Medium Enterprises (Autoridad de la Micro, Pequeña y Mediana Empresa) and the Ministry of Commerce and Industries, would provide training and assistance for formalization, including guidance on establishing microenterprises under Law 132 of 2013. The National Bank (Banco Nacional) and the Authority for Micro, Small and Medium Enterprises would create microcredit facilities and financial training. Each mayoral office would prepare and implement a Municipal Street Vending Plan, updated at the start of each municipal administration and valid for three (3) years, covering vending areas, infrastructure, association participation and funding, with possible cofinancing from the Executive Branch (Órgano Ejecutivo) and other bodies. Registered vendors would have to enroll in the Social Security Fund as self-employed workers under Law 51 of 2005; enrollment would be required for the card and benefits, with possible partial subsidies and payment arrangements.

Seizure of goods would be limited to harmful, illegal or dangerous merchandise, with an inventory record, return procedures and compensation for loss, damage or late return. The bill establishes administrative penalties for officials who carry out improper evictions, seizures or arbitrary acts, and graduated penalties for vendors, from a written warning to cancellation of the permit card. It voids municipal acts contrary to the proposed law. The Executive Branch would issue regulations within no more than 6 months, and the law would take effect upon publication in the Official Gazette. Its provisions concern municipalities, street vendors, vendor associations, consumers, public health and social security bodies, and the microenterprise and financing sectors.