Bill 681.

Summary.

The bill establishes a special territorial and legal regularization procedure for informal settlements with continuous, peaceful and consolidated occupation for at least twenty (20) years before its entry into force. It excludes protected areas where occupation is prohibited, areas of unmitigable high risk, land reserved for strategic state infrastructure and land that cannot legally be regularized. It appoints the Ministry of Housing and Land Use Planning (Ministerio de Vivienda y Ordenamiento Territorial) as coordinator, while preserving the powers of the National Land Administration Authority (Autoridad Nacional de Administración de Tierras) and municipalities. Its guiding principles include legal certainty, the social function of property, respect for private ownership, fair compensation, participation, transparency and negotiated solutions. It defines consolidated settlements, progressive regularization, historic occupants, registered owners and negotiated social purchase, with reference to the Political Constitution of the Republic of Panama (Constitución Política de la República de Panamá) and the Political Constitution (Constitución Política).

The Declaration of Consolidated Settlement (Declaratoria de Asentamiento Consolidado) administratively recognizes a community for priority regularization but grants no ownership of the occupied land. Eligibility depends on sustained occupation, housing, community organization, services or infrastructure, legal feasibility and the absence of judicial or territorial barriers. The Ministry, an organized community, a municipality or a registered owner may initiate the request. Before issuing a decision, the authorities undertake legal, social, urban and environmental assessments, a cadastral survey and identification of occupants and the owner. The resolution is published and communicated to the competent institutions. It opens a single case file, requires a comprehensive plan, prioritizes technical work and procedures, and leads to family certificates. While the declaration remains in effect, it restricts arbitrary administrative evictions subject to the stated exceptions, preserves owners’ and third parties’ legal actions, and does not legitimize new occupations. The certificate issued by MIVIOT (MIVIOT) permits access to state programs under regulations but is not a title deed.

For declared settlements, the bill provides for gradual inclusion in public investment plans, subject to budgets and technical planning. Work may cover roads, drainage, emergency access, drinking water, sanitation, electricity, lighting and public spaces. The Ministry coordinates these measures with the National Land Administration Authority, municipalities, the Ministry of Public Works (Ministerio de Obras Públicas), the National Aqueducts and Sewers Institute (Instituto de Acueductos y Alcantarillados Nacionales) and electricity distributors.

After the declaration, the Ministry convenes a Negotiated Social Purchase Committee (Mesa de Compra Social Concertada) with the owner, community representatives and relevant institutions. It must be established within sixty (60) days, and negotiations may last no more than twelve (12) months unless a reasoned extension is granted. Negotiations rely on a valuation by certified experts from MEF (MEF) and the Comptroller’s Office; the valuation considers the property’s actual value and excludes speculative gains arising solely from regularization. If the property is purchased, the Committee sets progressive payments over at least two (2) years and at most five (5) years, taking family means into account, with possible public contributions, beneficiary payments, subsidies or financing. If negotiations are exhausted without agreement, the State may initiate expropriation for a social purpose under the Political Constitution and applicable law.

The bill creates the National Territorial Regularization Fund (Fondo Nacional de Regularización Territorial), attached to the Ministry, to finance acquisitions, studies, infrastructure and other regularization measures. Its resources may include budget allocations, state contributions, cooperation funding, donations and recovered payments. Funds are restricted to these purposes, and recovered amounts are reinvested. The bill requires oversight and periodic publication of financial information and progress. The Executive Branch (Órgano Ejecutivo), acting through the Ministry and the Ministry of Economy and Finance (Ministerio de Economía y Finanzas), regulates the Fund’s operation.

Families receive an initial certificate providing provisional legal certainty. Once legal and financial requirements are met, it is replaced by a title or another final legal solution. The process proceeds through identification, declaration, priority zoning and a final solution, which may involve individual title, allocation, purchase, expropriation or relocation. Regulations set maximum deadlines for each stage. The Ministry maintains monitoring and a national register subject to personal data protection rules, while institutions submit progress reports. The bill excludes later occupations, requires regulations within six (6) months and provides for commencement on the day after promulgation. Its provisions concern occupant families and registered owners, municipalities, housing, land and public works authorities, utility providers, and the construction, public services and financing sectors.