Puerto Rico gov signs bill exempting nonprofits from certificate fees
Nonprofits providing free services to government agencies will no longer pay for eligibility certificates.
Puerto Rico Gov. Pedro Pierluisi has enacted House Bill 1541, amending Act 73 of 2019, which will exempt nonprofit organizations that provide free services to government entities from the cost of issuing certificates of eligibility.
The amendment aims to ease the administrative burden on nonprofits that support vulnerable populations, such as public-school students and elderly residents in assisted living homes.
More specifically, House Bill 1541 amends subsection (j) of Article 45 of Act 73 of 2019, the General Services Administration Act for the Centralization of Government Procurement of Puerto Rico, to ensure that nonprofits offering free services are not subject to the fee for obtaining certificates of eligibility. The certificate is essential for entities looking to do business with the government or municipalities.
The law streamlines procurement processes, requiring applicants to submit necessary documents only once to the General Services Administration (ASG, in Spanish) rather than multiple times for different contracts or auctions.
“This Legislative Assembly understands that an entity or person that does not charge an agency for a service provided must be exempt from the payment of this certificate. Similarly, we understand that groups and entities must comply with the requirements and provide the documents so the certificate can be issued since, on many occasions, they provide services in communities with limited resources, highly regulated places or security and sensitivity for the population that is served,” the bill states.
The need for the exception of payment for the eligibility certificate of these nonprofit institutions that do not charge government agencies for their services “is justified,” the bill adds. It also clarifies that the exemption does not apply to nonprofits that charge for services.
