National Assets, Concessions, and Expropriation Compensation Rules
National Assets, Domain, and State Property Management
Permission on National Assets for Public Use
Through permits, the State can grant preferential use of national property for public use.
Concession on National Assets for Public Use
This is an act of granting authority to individuals regarding the right, appropriation, or private enjoyment of national goods belonging to the public or state domain.
Theory of the State’s Private Domain
This theory holds that national assets designated as public domain are only for public use, and the remaining assets are part of the State’s private domain.
Distinction: Domestic Public Use vs. Property Tax
The use of public property does not belong to all inhabitants of the nation, while a property tax is considered the nation’s domain.
Domestic vs. National Property for Public Use
- Domestic Goods: The domain belongs to all the nation.
- National Property: Domain for public use and use part of the whole nation (e.g., Codelco, in the sense that the whole nation takes profits from this asset).
General Accounting System of the Nation
Characterized as a comprehensive, unique, and uniform accounting system.
Fiscal and Public Assets Definitions
- Fiscal or Tax Assets: Private property owned by the Treasury.
- Public Property: All property belonging to the State and all lands which, being located within the territorial limits, have no other owner.
Affection of State Assets
State assets are affected when they are destined for domestic or public use.
Disaffection of National Assets
Occurs when a national asset designated for public use ceases that designation and becomes a general national asset.
Road Management (Strip Roads)
The management of roads is handled by a decentralized body of the MOP (Ministry of Public Works).
Definition of Beaches
A tract of land that the waves alternately bathe and vacate, extending as far as the highest tides reach.
Treasury’s Private Property
These are goods that belong to the State but are not intended for a specific public purpose or public service.
Complimentary Account
Designed to identify accounts that change the composition of available monetary resources.
Definition of Owned Property (Ownership)
The right granted broad power that can be an asset, entitling the holder to take advantage of all profits it is capable of providing.
Expropriation Procedures and Compensation
Expropriation for Public or National Interest
Expropriation is carried out for reasons of public interest or national interest.
Legal Grounds for Expropriation
The legislature sets out the grounds of public or national interest under which expropriation can occur.
Conditions for Expropriation
Requires the existence of privately owned property deemed necessary for public utility or necessity of national interest.
The Study of Expropriation Process
This is the preparatory act for which the authority orders the study, publishes the expropriation resolution in the Official Gazette, and enters it in the register of prohibitions to alienate.
Determining the Compensation Amount
The amount of compensation is determined by a commission that sets the compensation amount, adopting its decisions by majority vote.
The Appraisers Committee
This committee must have three members chosen from a list of experts approved by the President of the Republic by a decree of the Ministry of Finance.
Provisional Compensation Amount
The amount resulting from the estimate given by the decision of the expert commission of appraisers.
The Expropriation Decision
The act of expropriation is an administrative measure, formalized by a supreme decree or by resolution of the relevant entity, as appropriate.
Validity Requirements for the Expropriation Decision
The decision must include:
- The date.
- Identification of the expropriated property.
- The cause underlying the expropriation.
- The owner’s name.
- The provisional amount of compensation.
- The form and timing of payment of compensation due under the law.