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Governor Pushes Adjustments to Puerto Rico Permitting Reform as Legislative Deadline Nears

Goal is to create a system that makes it easier for small and medium-sized businesses to operate

Economy·By Eva Llorens··3 min read
Governor Pushes Adjustments to Puerto Rico Permitting Reform as Legislative Deadline Nears
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Gov. Jenniffer González Colón is seeking further modifications to a broad permitting reform measure approved by the Senate, saying her administration largely supports the legislation but wants additional changes to better align it with the executive branch’s vision for economic development and regulatory oversight.

The governor confirmed Tuesday that she will submit a package of amendments to lawmakers for consideration as the Legislature enters the final days of the current regular session. Nov. 12 is the last day for legislative approval of measures during the session, leaving a limited window for negotiations.

The Senate approved the permit reform on Oct. 13 after combining provisions from two separate bills: Senate Bill 1173, authored by Senate President Thomas Rivera Schatz, and Senate Bill 1183, introduced by the governor’s administration.

The proposal would significantly reshape Puerto Rico’s permitting system. Among its most notable provisions are the elimination of the single permit process for future permit requests, the creation of a declaration-of-use mechanism for certain permitted activities, mandatory deadlines for agencies to evaluate permit requests, and automatic approval procedures when government agencies fail to meet established timelines.

The measure also contains provisions related to coastal management, including the designation of a 20-meter shoreline monitoring zone and a six-meter public access corridor along the maritime-terrestrial boundary. Existing coastal boundary determinations would remain in effect under conditions established in the bill.

González said officials at the Department of Economic Development and Commerce reviewed the Senate version of the legislation after its approval and identified areas where additional revisions were warranted. Despite those concerns, she emphasized that the administration supports the majority of the changes adopted by lawmakers.

According to the governor, more than 70% of the amendments incorporated by the Senate have been accepted by the executive branch. The remaining recommendations are intended to reconcile differences between the administration’s original proposal and the substitute measure approved by senators.

“We submitted legislation that resulted from extensive work with the private sector and the Department of Economic Development and Commerce as part of a broader policy commitment,” González said. “After reviewing the Senate substitute, the department conducted its own analysis and recommended several additional changes.”

The proposed amendments have already been forwarded to the leaders of both the Senate and the House of Representatives, where lawmakers will determine whether to incorporate them into the final version of the bill.

While describing the legislation as a reasonable compromise, González stressed that the administration’s principal objective remains reducing regulatory barriers that businesses face when seeking permits.

“The goal is to create a system that makes it easier for small and medium-sized businesses to operate and for new investment to move forward,” she said.

The permitting reform has attracted significant attention from the business sector, which has long argued that Puerto Rico’s permitting process is cumbersome and slows economic activity. Lawmakers and administration officials will now have to determine whether they can reach agreement on the remaining issues before the legislative session concludes.

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