President Laura Fernández has presented eight new bills that could change how Costa Rica handles pensions, loans, government contracts, internet funding and several other public programs. The proposals were announced as Fernández marked her first 100 days in office. However, none of the changes has taken effect. Each bill must first be discussed and approved by the Legislative Assembly.
Here is what the eight bills would do in simple terms:
- Provide more pensions for people in need
The first bill would move part of an employer-paid payroll contribution into the fund that provides basic pensions to older adults and people with disabilities who did not pay enough into the regular pension system. The government estimates that the change could provide pensions to around 31,000 additional people.
The proposal would not take money from workers’ individual retirement accounts. Instead, it would redirect money currently sent to Banco Popular.
- Limit some powers of the Comptroller General
Another bill would reduce the Comptroller General’s ability to stop or interfere with certain government projects and contracts. The Comptroller is responsible for checking how public money is spent. Under the proposal, its work would focus more narrowly on whether public funds are being handled legally.
Supporters may argue that this would help government projects move faster. Critics are likely to say it could weaken an important check on public spending. Similar ideas appeared in earlier “Jaguar” proposals, parts of which faced constitutional objections. This bill is therefore expected to receive close legal and political attention.
- Allow faster government purchasing in special cases
The government also wants public institutions to have a quicker way to purchase goods or services when there is an urgent risk or when the usual bidding process does not fit the situation. An institution would have to explain why the normal process is unsuitable, how it selected the supplier, how much it will spend and how long the contract will last.
The Comptroller would then have 15 working days to review the request. A lack of response would not automatically mean approval.
- Give INA more control over hiring
One proposal would create a separate employment system for the National Learning Institute, known as INA. Existing employees could remain under the current Civil Service system. New employees would enter the new system, while current workers could choose to transfer without losing the rights they have already earned.
INA’s board would also receive more freedom to create, remove and classify jobs. The government says this would help the institution respond more quickly to Costa Rica’s training and employment needs.
- Move forward with Ciudad Gobierno
Another bill would create special rules for Ciudad Gobierno, a planned group of office buildings intended to bring dozens of government departments together in one location. The Finance Ministry could lease the buildings for up to 30 years, with the possibility of extending the agreement to a maximum of 50 years. The Central American Bank for Economic Integration, known as BCIE, would play a central role in developing the project.
The government says Ciudad Gobierno could save approximately $26 million a year by reducing the amount it pays to rent offices around San José. The proposal includes the possible relocation of as many as 35 public institutions and departments. Parts of the plan involving public land and property used by the Liceo de Costa Rica could become controversial.
- Help farmers and fishers buy insurance
The sixth bill would create an agricultural insurance fund called Fonagro. The fund would help farmers, livestock producers, fishers and aquaculture businesses pay for insurance against losses caused by weather, disease and other emergencies.
Small producers and artisanal fishers could receive assistance covering up to 75% of their insurance premiums. Medium-sized producers could receive help covering up to 50%. Money for the program could come from the National Insurance Institute, the Agriculture Ministry and the Rural Development Institute, depending on available funds.
- Change who manages money for internet access
The government wants to move responsibility for the National Telecommunications Fund, known as Fonatel, from the telecommunications regulator Sutel to Costa Rica’s Innovation and Research Promoter. Fonatel uses money collected from telecommunications companies to improve internet and telephone access in communities where private companies may not provide adequate service.
The Science, Innovation, Technology and Telecommunications Ministry would also receive greater control over the annual fee paid by telecommunications companies. Existing Fonatel contracts and projects would remain valid during an 18-month transition.
- Change how maximum interest rates are calculated
The final bill would change the system Costa Rica uses to set maximum legal interest rates. Costa Rica currently has a formula intended to prevent lenders from charging extremely high interest. Under the proposal, the financial regulator Sugef would calculate new limits each year using a method approved by Conassif, the country’s financial oversight council.
Different types of loans could have different limits. For example, credit cards, personal loans and small-business loans might no longer share the same maximum rate. The proposal would not immediately remove interest-rate limits. However, the new calculation method could result in some limits rising or falling. The final effect on borrowers would depend on the formula adopted by regulators.
What happens next?
The eight bills will now have to move through the Legislative Assembly. Lawmakers can approve, reject or change them during the process. Some proposals, particularly the plan to limit the Comptroller’s powers, may also face questions about whether they comply with Costa Rica’s Constitution.
For now, pensions, interest-rate limits, government purchasing rules and other programs remain unchanged.
