Executive Decree 126-17 of May 22, 2017

Sanctioning Procedure

The President of the Republic,

IN EXERCISE of the powers conferred upon him by Article 140, numeral 17, of the Political Constitution of the Republic;

CONSIDERING that it is necessary to regulate the sanctioning procedure to be applied by the regulatory bodies in the exercise of their supervisory and control functions;

CONSIDERING that the current legal framework requires a unified procedure to ensure legal certainty, due process, and the effective enforcement of regulatory norms;

CONSIDERING that the establishment of a clear sanctioning procedure contributes to the improvement of the regulatory environment and the protection of the public interest;

HAS ISSUED

Executive Decree 126-17

Subject: Sanctioning Procedure.

Article 1 – Object. The purpose of this Decree is to establish the general provisions governing the sanctioning procedure to be applied by the regulatory bodies of the State in the exercise of their supervisory, control, and inspection functions, in order to impose sanctions for violations of the laws, regulations, and administrative acts within their competence.

Article 2 – Scope. This Decree applies to all regulatory bodies established by law, which are empowered to supervise, control, and inspect activities within their respective sectors, and to impose administrative sanctions for infractions committed against the norms they enforce.

Article 3 – Principles. The sanctioning procedure shall be governed by the following principles:

a) Legality: Sanctions may only be imposed for violations expressly defined by law or regulation, and in accordance with the procedures established therein. b) Due Process: The sanctioned party has the right to be heard, to present evidence, and to defend themselves throughout the procedure. c) Proportionality: Sanctions must be proportional to the severity of the infraction, the degree of fault, and the harm caused. d) Presumption of Innocence: The burden of proof lies with the regulatory body, and the sanctioned party is presumed innocent until proven otherwise. e) Efficiency: The procedure shall be conducted with promptness and effectiveness, avoiding unnecessary delays. f) Good Faith: All parties involved in the procedure must act in good faith.

Article 4 – Initiation of the Procedure. The sanctioning procedure shall be initiated ex officio by the regulatory body upon detection of a potential violation, or upon receipt of a complaint, denunciation, or report from any interested party, provided that the information is sufficient to identify the alleged infraction and the responsible party.

Article 5 – Notification. The regulatory body shall notify the alleged responsible party of the initiation of the procedure, specifying the facts attributed to them, the legal norms allegedly violated, and their right to present a defense and submit evidence within the established timeframe.

Article 6 – Investigation. The regulatory body shall conduct the necessary investigations to verify the facts and determine the existence of the infraction. This may include inspections, document reviews, and the taking of statements from witnesses and experts.

Article 7 – Defense. The alleged responsible party shall have the right to present a written defense, submit evidence, and request the performance of necessary investigative acts. The regulatory body shall evaluate the defense and evidence submitted.

Article 8 – Resolution. Upon completion of the investigation and evaluation of the defense, the regulatory body shall issue a resolution, which may:

a) Dismiss the procedure if the infraction is not proven or if there are legal grounds for dismissal. b) Impose a sanction if the infraction is proven, specifying the type and amount of the sanction, and the legal basis for the decision.

Article 9 – Types of Sanctions. The sanctions that may be imposed include:

a) Warnings. b) Fines. c) Suspension or revocation of licenses, permits, or authorizations. d) Closure of establishments or activities. e) Confiscation of goods. f) Publication of the sanction.

Article 10 – Appeal. The resolution imposing a sanction may be appealed before the competent administrative or judicial authority, in accordance with the applicable legal framework.

Article 11 – Entry into Force. This Decree enters into force on the date of its publication in the Gaceta Oficial.

Given in the Palacio Nacional, San José, on May 22, 2017.

Luis Guillermo Solís Rivera
President of the Republic

Carlos Manuel Vizcaino Quesada
Minister of the Presidency

[Other Ministers as applicable]

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Published in the Gaceta Oficial Digital, No. 28283-A, Monday, May 22, 2017.