P.R. Laws tit. 3, § 1922
(a) Definitions. — For the purposes of this chapter, the following words or terms shall have the meaning stated hereinbelow, except when the context clearly indicates otherwise, and the words used in the singular number shall include the plural number, and vice versa:
(1) Authority. — The Infrastructure Financing Authority.
(2) Bank. — The Government Development Bank for Puerto Rico.
(3) Assistance contract. — Any kind of agreement, covenant, or other written instrument executed between the Authority and a benefited entity, whereby the Authority pledges to lend assistance in financial, administrative, consultatory, technical or advisory issues, or assistance on project management, assistance relative to economic development and/or infrastructure construction, or assistance of any other nature, pursuant to the provisions of this section.
(4) Benefited entity. — Any person entitled to receive funds or any other kind of assistance under the Federal Economic Stimulus Act of 2009 and who executes an assistance contract with the Authority.
(5) Government of Puerto Rico. — The Government of the Commonwealth of Puerto Rico and the departments, agencies, boards, commissions, bodies, bureaus, offices, municipalities, political subdivisions, public corporations, and instrumentalities of the Commonwealth of Puerto Rico existing at present or to be created in the future.
(6) Federal government. — The United States of America, its President, any of its departments of the executive branch of the Government of the United States of America, or any corporation, agency, commission, board, or instrumentality created or to be created, appointed or established by the United States of America.
(7) Federal Economic Stimulus Act of 2009. — The Act approved by the Congress of the United States of America on February 17, 2009, denominated the American Recovery and Reinvestment Act of 2009, and any regulations promulgated thereunder.
(8) Organic Act of the Authority. — Sections 1901 et seq. of this title.
(9) Special periods. — Periods that begin at the time an assistance contract is executed with a benefited entity. Such periods are to end when the purposes thereof are completed or the conditions set forth under such contract are met.
(10) Person. — Any natural or juridical person, including entities belonging to the Government of Puerto Rico. As an example, the term person shall include, but not be limited to, any government department, agency, instrumentality or municipality, or any individual, trust, firm, partnership, stock company, association, public or private corporation, cooperative association, or nonprofit entity.
(b) Designation and authorization. — The Authority is hereby designated and authorized to act as the chief government entity in charge of the handling, receipt, custody, and administration of all resources, whether they be funds, grants, or any other kind of aids received by the Government of Puerto Rico for itself and for the residents of Puerto Rico under the Federal Economic Stimulus Act of 2009. As a part of these functions, the Authority shall coordinate all efforts and works between the Government of Puerto Rico and the federal government, as well as coordinate internally among the various entities that constitute the Government of Puerto Rico, as may be required or convenient for handling and receiving said resources, as well as the maximization thereof. Furthermore, the Authority shall be the chief entity of the Government of Puerto Rico for the identification, programming, planning, development, channeling of resources, and supervision of projects, initiatives or programs that qualify for financing with these resources. The Authority shall also handle, gather, organize, analyze, submit for approval if necessary, and disclose information and reports as may be required pursuant to the Federal Economic Stimulus Act of 2009, in order to guarantee transparency as to their employment and administration.
From the funds to be received and administered by the Authority, the tax credits or incentives granted to the residents of Puerto Rico are hereby excluded; the latter are to be received, administered, and disbursed by the Secretary of the Treasury. Furthermore, all funds that, under the provisions of the Federal Economic Stimulus Act of 2009 or under the norms or rules of, or agreements existing with, the federal government, must be received, disbursed, or administered by any other entity of the Government of Puerto Rico, are hereby excluded. However, the Authority shall be responsible for discharging all other tasks hereby entrusted that are not incompatible with the provisions of the Federal Economic Stimulus Act of 2009 or with the norms or rules of, or the agreements existing with, the federal government.
In coordination with the Bank and the Secretary of the Department of the Treasury, and to the extent that it is not incompatible with the Federal Economic Stimulus Act of 2009 or with the norms or rules of the federal government or interagency agreements, the Authority shall invest the funds it receives as provided for under subsection (f) of this section and shall make all payments from these funds as pertinent.
(c) Assistance contracts. — In order to further and expedite the purposes of this section and to expediently channel the federal assistance received and ensure compliance with the requirements set forth under the Federal Economic Stimulus Act of 2009, the Authority is hereby authorized, as well as each entity of the Government of Puerto Rico, to enter into assistance contracts. Benefited entities shall be under the obligation to comply with the provisions of their assistance contracts and with the actions taken by or on behalf of the benefited entity or the Authority under such contracts, provided that such benefited entity is able to take such actions without infringing upon the laws, contracts, and agreements in effect. Subject to the provisions of this section, the Federal Economic Stimulus Act of 2009, the Authority’s Organic Act insofar as not incompatible with this section, or any other law, agreement, or contract of the Authority or the benefited entity in effect, assistance contracts shall include all provisions as the Authority may deem pertinent to achieve the purposes of such assistance. Such contracts may include, not to be construed as a limitation, the terms listed in the Organic Act of the Authority, as well as all others as the Authority may deem necessary or convenient.
(d) Special periods. — It is hereby declared that benefited entities who execute assistance contracts shall enter into special periods from the time the assistance contract is executed, until such special periods end at the time the purposes thereof are completed or the conditions provided under such contract are met. During such special periods, the Authority may require the benefited entity to meet certain conditions or to take or adopt actions or measures as the Authority may deem necessary and convenient to maximize the benefits thus received for Puerto Rico as efficiently and expediently as practicable and to distribute them in the fairest and most equitable manner. Furthermore, it may establish in the corresponding assistance contract, the measures that the Authority may implement during such periods and the remedies available to the Authority when the benefited entity fails to comply with the provisions of the assistance contract.
During the special period, and as an exception to any bidding requirement imposed under the organic act or the bylaws of a benefited entity of the Government of Puerto Rico, the Authority shall be empowered to require that any benefited entity not to observe such bidding procedure when awarding contracts for construction, procurement, or any other contract for services, unless the Federal Economic Stimulus Act of 2009, or other federal law, rule or norm requires specific procurement and contracting procedures to be followed, in which case, the latter procedures shall be observed. The Authority may require a benefited entity not to observe the bidding procedures only when such provision has been set forth in the assistance contract and by means of a resolution of the Board of Directors of the Authority to that effect. The resolution shall provide for the manner in which procurement or contracting is to be carried out, while maintaining a balance between the promptness required and the mandatory transparency, fairness and equitability in the distribution of such benefits.
(e) Implementation costs; authorization for the Bank to grant loans. — The Bank is hereby authorized to grant a loan to the Authority to defray the costs of implementing the Federal Economic Stimulus Act of 2009 in Puerto Rico pursuant to the provisions of this subsection below, as well as to advance funds for projects that qualify for receiving funds under such Act as a refund. Furthermore, the Authority is hereby authorized to charge reasonable fees to benefited entities on account of services provided under assistance contracts. Insofar as the Federal Economic Stimulus Act of 2009 allows, benefited entities may defray the share of service fees and repay the Bank loan in quantities as eligible from funds received under the Federal Economic Stimulus Act of 2009. All other implementation costs shall be payable from resources available to each benefited entity. Insofar as such available resources are not sufficient to repay all the amounts advanced by the Bank and the service fees charged by the Authority, these shall be repaid on a yearly basis by means of budgetary appropriations up to a sum equal to the amount of the loan granted by the Bank and the sums owed to the Authority. The Director of the Office of Management and Budget shall include in the operating budgets of the Commonwealth of Puerto Rico, submitted annually by the Governor to the Legislature, beginning in the fiscal year following the date on which the Bank has made a disbursement, the amounts necessary so as to allow the Bank to recover the principal of and interest on the loan disbursed and to allow the Authority to recover the service fees owed.
(f) Funds. — The funds received by the Government of Puerto Rico under the Federal Economic Stimulus Act of 2009 shall be kept in separate accounts and deposited in the Bank or in any other institution authorized by law to receive public fund deposits. These funds shall be accounted for, controlled, and administered by the Authority, subject to the applicable accounting laws, the requirements established under the Federal Economic Stimulus Act of 2009, and any other norm, rule, or agreement whereby such funds are received.
(g) Acceptance on behalf of the Government of Puerto Rico. — The Authority, on its behalf and on behalf of the Government of Puerto Rico, shall be the entity authorized to accept the benefits available under the Federal Economic Stimulus Act of 2009. The Government of Puerto Rico hereby agrees to any requirement, condition, or term of any funds accepted by the Authority. The Authority may execute contracts and other documents with the federal government as necessary to accomplish the purposes of this Section and the Federal Economic Stimulus Act of 2009.
(h) Norms for construing this section. — It shall be understood that the provisions of this section are to be construed in the most liberal manner possible in favor of the maximization of the funds that Puerto Rico may receive under the Federal Economic Stimulus Act of 2009; the expedient, fair and reasonable distribution of such assistance; the transparency and the timely, complete and clear disclosure of the funds to be distributed, and the procedures observed; the efficiency in project development; and the accomplishment of the purposes of the Federal Economic Stimulus Act of 2009 as set forth therein. Likewise, the powers and authorities conferred onto the Authority under this section and under the Organic Act of the Authority shall be construed liberally, in order for the purposes of this section to be attained.
(i) Provisions in contravention rendered ineffective. — In the event that the provisions of this section are in contravention with the provisions of any other law, the provisions of this section shall prevail, unless the provisions of such other law specifically amend or repeal any or all the provisions of this section.
History —June 21, 1988, No. 44, added as § 33 on Mar. 9, 2009, No. 8, § 2.