This past Tuesday, the President of the Republic, Carlos Alvarado Quesada, signed Law No. 10126, “Open Air Commerce Law“, which aims to empower municipalities to authorize patent holders or licensees to temporarily develop the commercial activity in public spaces.
The objective of this law is to promote trade, the use of public space, citizen security and economic reactivation, within a framework of respect for the right to free transit, accessibility and the maintenance and protection of public spaces.
The law -which will come into force as of its publication in the official newspaper La Gaceta- was also signed at the Presidential House by the Minister of Economy, Industry and Commerce, Victoria Hernández Mora, in the company of the co-owners of Café Otoya, Franklin Dawkins and DarielFallas, who were satisfied with the law.
Initiative aims to promote trade, use of public space, citizen security and generate greater economic activity
Previously, the document was signed by the Minister of Housing and Human Settlements, Irene Campos Gómez; and the Ministers of the Interior and Police, Michael Soto Rojas; of Public Works and Transportation, Rodolfo Méndez Mata; of Health, Daniel Salas Peraza; and Human Development and Social Inclusion, Juan Luis Bermúdez Madriz.
The “Open Air Trade Authorization” that local governments may grant from this legislation will be for the sale of food and beverages in spaces such as sidewalks, parks, squares, streets or other places. This authorization will only allow the placement of tables, chairs and other light furniture, which must be removed daily at the end of the commercial activity.
President Alvarado stated that this initiative “has many benefits for our country and for the different communities and municipalities, because it allows for public-private partnerships so that different businesses can occupy outdoor spaces in a regular and orderly manner, thus benefiting the businesses of sale of food meals”.
Likewise, the president highlighted the great economic benefits, but also the recovery and beautification of urban spaces, and improvement of the quality of life of the population, enjoying more and more outdoor activities.
For her part, the MEIC Minister, Victoria Hernández, commented that “as of this law, small and large restaurants, affected by the Covid-19 pandemic due to capacity restrictions, have a new tool that will help improve their economic activity and attract new consumers, by allowing them to use the outdoor space to expand the capacity of this type of business, while generating new resources for the municipalities to care for and improve the public environment of the communities based on a new gastronomic experience.”
“We are very satisfied with the approval of the law, because these are times when we need reactivation strategies. This will allow many businesses to extend their operation, in addition to allowing them to contribute other elements, such as experiencing the city in a different way, seeking greater security in spaces that are sometimes poorly lit, that are little traveled. So this law not only complies with the spirit that is to stimulate trade in such complicated times, but also allows us to take advantage of the city in a different way. We hope that the regulation is consistent with the spirit of the law and that we can safely improve and beautify outdoor spaces”, said the co-owners of Café Otoya, DarielFallas and Franklin Dawkins.
About the law
It authorizes municipalities to issue an “open-air trade authorization” for the use of public spaces when granting commercial patents and licenses, as long as the applicant has complied with all its corresponding obligations.
The permit may only be granted for the commercialization of food and beverages and may not be issued for traveling or stationary patents. Only those patent holders or licensees located in commercial establishments that are on private property may be authorized.
Municipalities must ensure that the use of these spaces does not contravene the right of free transit, access and mobility of pedestrians, compliance with Law 7600, Law on Equal Opportunities for Persons with Disabilities, Law 9078, Traffic Law by Land Public Roads and Road Safety, and that the visual and noise pollution in the environment in which the commercial activity is carried out is properly controlled and they must regulate this law within a period of six months from its entry into force.
In this way, among other aspects, the amount to be paid for the right to use public spaces granted through the authorization of open-air commerce will be defined, according to the number of square meters allocated to its activity.
Local Governments may define differentiated amounts according to categories: parks, squares, sidewalks, cantonal roads; and they will not be able to make any charge for the outdoor areas that are within the private perimeter, according to the provisions of this law.
The amount to be collected may not exceed 50% of the amount accrued by the commercial establishment for the commercial license and those who obtain approval must make the advance payment of this right to the respective municipality.
Legislation empowers municipalities to authorize patent holders or licensees the temporary development of commercial activity in public spaces
The entirety of the income generated by the authorization of outdoor commerce must be used for the general improvement and security of the public space.The law authorizes municipalities, the public administration and autonomous and semi-autonomous institutions to participate in public-private partnership processes to establish income co-management schemes and/or provide additional resources in projects aimed at improving public space and management of these areas within the framework of the principle of inter-institutional cooperation.
In order to enable said activity, this law amends article 218 of Law 5395, General Health Law; Article 9 of Law 9047, Law for the Regulation and Marketing of Beverages with Alcoholic Content; Article 131 of Law 9078, Law of Traffic on Public Roads and Road Safety; and adds a new subparagraph h) to article 16 of Law 4240, Urban Planning Law.
