P.R. Laws tit. 23, § 6347
(a) Denial and reconsideration. — The Director may deny any application filed under § 6348 of this title when he/she determines, in his/her sound judgment and taking into account the facts presented, the nature and condition of the physical facilities, the number of jobs, the total payroll, the total sum of the investment, the project’s location, its environmental impact, or other factors that, in his/her judgment, warrant such determination.
The applicant, upon being notified of a denial by virtue of the provisions of this section, may request the Director to make a first and single reconsideration pursuant to the terms and conditions prescribed by the regulation that the Puerto Rico Tourism Company promulgates to that effect, pursuant to the provisions of §§ 2101 et seq. of Title 3, known as the “Puerto Rico Uniform Administrative Procedures Act”. When reconsidering the application, the Director may consider any other term or condition that does not exceed the benefits provided in this chapter, and which in his/her sound judgment is necessary to serve the best interests of Puerto Rico and to accomplish the tourist development purposes of this chapter.
(b) Grounds and procedures for revocation. — The Director may impose fines, suspend, or revoke the tax benefits granted under this chapter, after allowing the person who enjoys the same to appear and be heard pursuant to the provisions of the Puerto Rico Uniform Administrative Procedures Act. The amounts to be paid in cases in which a fine is imposed, in lieu of the suspension or revocation of the benefits granted, shall be determined by the Director by regulations. The Director may determine that the suspension, revocation, or fine in question shall take effect on the date on which the exempt business is found guilty of the violation on which the determination is grounded, in the following cases:
(1) When the exempt business fails to comply with any of the obligations imposed under this chapter, the regulations promulgated thereunder, or the terms contained in its grant, as the case may be.
(2) When the exempt business suspends its operations for more than sixty (60) days without the Director’s authorization. The Director shall grant his/her authorization prior to a suspension for a period greater than sixty (60) days, when such suspension is due to causes beyond the control of the exempt business.
(3) As for hotels, condo hotels, or Puerto Rican paradores, when licensees operate the same in violation of the provisions in effect of the Regulation of the Required Minimum of Lodgings and Paradores of Puerto Rico. The Director may mitigate this revocation, limiting its effects to the suspension of the benefits of this chapter for periods of not less than one (1) year. The suspension periods shall be taken into account when computing the effective term of the benefits of this chapter. Provided, That in the event that a Puerto Rican parador is severed from the parador program sponsored by the Puerto Rico Tourism Company, the tax exemption and all other benefits enjoyed by such Puerto Rican parador shall be suspended for the effective term of severance from the program. A Puerto Rican parador which has had its grant revoked may apply for a grant under this Act if it complies with the provisions of § 6345 of this title and with any other applicable requirement of this chapter, or which the Director may establish by regulations.
(4) When the benefits of this chapter have been obtained through false or fraudulent representations in relation to: the nature of the eligible business, the use to be made of the business’s property, or any other fact or circumstance that caused in whole or in part the approval of the grant.
(5) When the exempt business has failed to comply with its payments on the room occupancy rate tax provided in the Commonwealth of Puerto Rico Room Occupancy Rate Tax three (3) times or more (not to be necessarily consecutive) within a single fiscal year pursuant to the provisions of said sections.
History —July 10, 2010, No. 74, § 8.