Major focus will be on small and midsize ventures
The Puerto Rico Legislature is expected to open a busy second session targeting business and economic development, with House and Senate committees working on measures on permitting reform, municipal revenues, insurance oversight, incentives and support for small and midsize businesses.
Julio de Jesús, legislative advisor to the House Small and Midsize Businesses Committee, which is chaired by Rep. Sergio Estévez, said his panel will combine legislative work with outreach to merchants. The committee plans educational campaigns in municipalities across Puerto Rico to explain seed capital, funding sources and available incentives. “We will make direct contact with merchants in the cities,” he said.
In the Senate, the Economic Development, Small Business, Banking, Commerce, Insurance and Cooperativism Committee is also preparing for a broad agenda. Chairwoman Sen. Nitza Morán said the panel will participate in discussions on permitting reform and the proposed repeal of changes to the inventory tax, while directly evaluating measures such as an artificial intelligence (AI) oversight framework for the insurance sector.
Although the permitting bill is formally before the Reforms and Appointments Committee, chaired by Senate President Thomas Rivera Schatz, Morán said her committee has taken part in public hearings and internal discussions. The substitute bill consolidates several proposals and seeks to resolve jurisdictional conflicts among agencies, including the Department of Environmental and Natural Resources.
A central issue in her panel is modernizing the Single Business Portal. Morán said the current system does not give applicants real-time visibility into the status of their permit requests. “If our reform wants to streamline it, we have to streamline the platform as well,” she said.
The committee is considering involving the Puerto Rico Innovation and Technology Service to develop alerts similar to the SURI system, allowing business owners to see whether a permit is delayed because of missing documents or tax obligations. SURI is an online platform that centralizes and streamlines tax and revenue information for residents and businesses.
The committee will also revisit measures left pending at the end of the June session, including Senate Resolution 448 on single-use plastic bags and the debate over eliminating the inventory tax. Morán said she is awaiting La Fortaleza’s working group report before moving legislation, noting that the issue is complicated because the inventory tax is an important municipal revenue source even as businesses face inflation and tighter margins.
To offset potential municipal losses, Morán has proposed requiring short-term rentals to register formally and pay the 7% tourism tax. She said the lack of regulations has allowed thousands of short-term rental units to operate without contributing to the tax base.
Artificial intelligence is another major focus. Senate Bill 1226 would regulate the use of AI in medical insurance claims to help ensure patients are not denied coverage through automated systems. Related measures would require insurers to cover robotic surgical procedures and process catastrophic illness claims within 24 hours.
The panel will also revisit incentives under Law 60, including House Bill 1133 by Rep. Ángel Morey, which would make philanthropic contributions mandatory for investors receiving tax benefits. Morán said the measure would allow the Department of Economic Development and Commerce to revoke incentives if investors fail to meet contribution requirements.
Helping Seniors Become Entrepreneurs
Other initiatives include incentives for recycling and composting industries, updates to capital requirements for new credit unions and expanded support for older adults who become entrepreneurs. Senate Bill 806 would broaden the “empresarismo máster” program with financing, training and business incubation for seniors; the measure is awaiting House approval.
Morán said the committee has also discussed commercial corridors with the Municipality of San Juan and the Department of Economic Development, including areas such as Calle Loíza and Calle Cerra in San Juan, as well as Miramar and Río Piedras. For now, she said existing municipal grants of $10,000 to $25,000 for new businesses appear to be meeting the need, and warned that over-legislation could slow growth.
In the House, De Jesús said lawmakers may insist on House Bill 272, which Gov. Jenniffer González Colón vetoed. The bill would have extended the sales and use tax holiday on school supplies to 14 days per year. De Jesús said the panel does not expect the measure to have the economic impact cited by the Financial Oversight and Management Board.
The House committee will also evaluate amendments to the Condominium Law. House Bill 961 would prohibit the suspension of essential services—such as drinking water, electricity, gas and telecommunications—for nonpayment of maintenance fees, insurance or fines, while allowing alternative collection mechanisms.
House Bill 639 would allow close relatives of property owners to represent them, with voice and vote, in owners’ meetings and to serve on boards of directors when an owner is sick or disabled.
As the legislative session begins, both panels are positioning their work around regulatory modernization and economic resilience. “I have five topics in one and they all touch the financial sector,” Morán told Caribbean Business, adding that her committee will continue coordinating with industry groups, regulators and municipalities to shape legislation that supports growth while protecting consumers.
