2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART IV - Excise Taxes (§§ 31601 — 31771) › Chapter 1036 - Time, Form of Payment, and Withholding (§§ 31741 — 31751a) › § 31751a - Disposition of funds in favor of the Infrastructure Financing Authority

(a) The revenues derived from the taxes collected by virtue of § 31627a of this title shall be deposited into the Infrastructure Financing Authority Special Economic Assistance Fund established in § 1923 of Title 3, and shall be used: (i) to repay obligations incurred by the Puerto Rico Infrastructure Financing Authority for the purpose of refinancing or repaying any debts or obligations of the Highway and Transportation Authority from time to time assumed or paid by the Infrastructure Financing Authority, and (ii) for other purposes authorized under § 1923 of Title 3. The Secretary shall transfer the amount of such revenues on a monthly basis or as agreed with the Puerto Rico Infrastructure Financing Authority. The Secretary is hereby authorized to establish a collections mechanism whereby the revenues that are to be deposited in the Infrastructure Financing Authority Special Economic Assistance Fund are paid directly by the taxpayer to the Puerto Rico Infrastructure Financing Authority, to a financial institution designated by the Secretary of the Treasury or the Infrastructure Financing Authority, or a financial institution acting as trustee in the trust agreement pursuant to which the bonds of the Puerto Rico Infrastructure Financing Authority are issued, and whose source of repayment are such revenues.
(b) In accordance with § 1923 of Title 3, and subject to the conditions established therein, the revenues derived from the excise tax imposed under § 31627a of this title are pledged to secure the repayment of the refinancing bonds, collateralized debt obligations, and the transferred debt, as such terms are defined in said section. The Puerto Rico Infrastructure Financing Authority is hereby authorized, after covering in any fiscal year, the repayment of the principal of and interest on and any other obligation related to such refinancing bonds, collateralized debt obligations, and the transferred debt payable during said fiscal year, to pledge or encumber the revenues derived from said excise tax to be deposited in the Infrastructure Financing Authority Special Economic Assistance Fund for the payment of the principal of and interest on other bonds or obligations or to secure the obligations and operations of the Highways and Transportation Authority. Such pledge or encumbrance shall be subject to the provisions of Section 8 of Article VI of the Constitution of Puerto Rico. The revenues derived from such collections shall only be used for the payment of interest and amortization of the public debt as provided in Section 8 of Article VI of the Constitution of Puerto Rico, insofar as all other available resources mentioned in said Section are insufficient for such purposes. On the contrary, the revenues derived from such collections, in the necessary amount, shall be used annually to: (1) before the effective date of the transfer (as such term is defined in § 2012a of Title 9), cover the debts, obligations, and/or operating expenses of the Highways and Transportation Authority or to pay interest on and principal of the BANs of the Authority (as such term is defined in § 2012a of Title 9) or the interest on and principal of any obligation of the Authority whose proceeds are used to repay, refinance, or replace the BANs of the Authority (as such term is defined in § 2012a of Title 9); Provided, That neither the Commonwealth of Puerto Rico nor the Infrastructure Financing Authority shall be required to use pledged revenues to cover any debts, obligations, and/or operating expenses of the Highways and Transportation Authority or to pay interest on and principal of the BANs of the Authority (as such term is defined in § 2012a of Title 9) or the interest on and principal of any obligation of the Authority whose proceeds are used to repay, refinance, or replace the BANs of the Authority (as such term is defined in § 2012a of Title 9) after September 30 th, 2015, and (2) on or after the effective date of the transfer (as such term is defined in § 2012a of Title 9) or on September 30 th, 2015, whichever is the earliest, (A) to make the payments and deposits required under the trust agreement of such refinancing bonds, collateralized debt obligations, and the transferred debt, and to fulfill any agreements entered into by and between the Infrastructure Financing Authority and the holders of said refinancing bonds, collateralized debt obligations and transfer debt, and after meeting the obligations mentioned in paragraph (A) above; (B) to pay any debt of the Highways and Transportation Authority with the Government Development Bank for Puerto Rico other than a transferred debt; and (C) to pay any other bonds and obligations of any government entity payable to the Government Development Bank for Puerto Rico that the Government Development Bank for Puerto Rico has determined are payable from pledged revenues (as such term is defined in § 2012a of Title 9).
(c) The individual paying excise taxes on crude oil and other oil byproducts shall furnish a copy of the tax returns and receipt of payment of excise taxes to the Puerto Rico Infrastructure Financing Authority.
(d) The Commonwealth of Puerto Rico hereby agrees and reasserts its commitment to any person, firm or corporation, or to any agency of the United States of America or of any state or of the Commonwealth of Puerto Rico that executes or acquires bonds of the Infrastructure Financing Authority for the payment of which revenues derived from the excise tax on crude oil, partially finished and finished oil by-products, and any other hydrocarbon blend imposed in § 31627a of this title have been pledged, as authorized under this section, not to reduce or eliminate the rate of the excise tax on crude oil, partially finished and finished oil by-products, and any other hydrocarbon blend imposed in § 31627a of this title; Provided, That this commitment shall not preclude the Commonwealth of Puerto Rico, through an amendment to this act, from substituting the pledged revenues for other revenues in an equal or higher amount and of equal or better quality as source of repayment for said bonds, provided that such substitution meets the requirements set forth in the documents of such bonds. It further agrees and reasserts its commitment to deposit in the Infrastructure Financing Authority Special Economic Assistance Fund the amounts pledged to secure the repayment of the obligations of the Puerto Rico Infrastructure Financing Authority, as provided in this section, until such bonds issued at any time, including interest thereon are fully paid.
(e) If the Commonwealth of Puerto Rico uses any amount of the revenues collected from the excise tax on crude oil, partially finished and finished oil by-products, and any other hydrocarbon blend fixed in § 31627a of this title for the payment of interest on and amortization of the public debt as provided in Section 8 of Article VI of the Constitution, the amounts used by the Commonwealth of Puerto Rico for the payment of interest on and the amortization of the public debt shall be reimbursed to the Puerto Rico Infrastructure Financing Authority from the revenues collected by the Commonwealth of Puerto Rico in the following fiscal year or, if such reimbursement is not possible in the following fiscal year, in subsequent fiscal years, except those revenues that have been pledged to meet any obligation. The revenues derived from such taxes that are to be used as provided in this section to reimburse the Puerto Rico Infrastructure Financing Authority any amount used by the Commonwealth of Puerto Rico for the payment of interest on and the amortization of the public debt, shall not be covered into the General Fund of the Government of the Government of Puerto Rico when collected, but rather shall be deposited in the Infrastructure Financing Authority Special Economic Assistance Fund and, subject to the provisions of Section 8 of Article VI of the Constitution of Puerto Rico, shall be used to reimburse said amounts to the Puerto Rico Infrastructure Financing Authority.
(f) On or after the effective date of the transfer (as such term is defined in § 2012a of Title 9), the amounts deposited each Fiscal Year in the Infrastructure Financing Authority Special Economic Assistance Fund in excess of the necessary amounts to, during said fiscal year, (1) pay the principal of and interest on refinancing bonds, collateralized debt obligations, and the transferred debt or any other bonds or obligations issued by the Authority after the repayment of such refinancing bonds, collateralized debt obligations, and the transferred debt, (2) meet obligations incurred under the bond issue documents, (3) make any other payment related to any other obligation incurred by the Authority, including payments under interest-rate swap agreements and other obligations in relation to borrowed money or bonds issued by said instrumentality payable from pledged revenues, or (4) cover those debts and/or obligations of the Highways and Transportation Authority as required by the Resolution of 1998 (as such term is defined in § 2012a of Title 9), and that the Infrastructure Financing Authority has agreed to cover, shall be transferred to the General Fund of the Commonwealth of Puerto Rico. In order to make such transfer, the Board of Directors of the Authority shall certify that the transferred amounts are not necessary to comply with the Resolution of 1998 (as such term is defined in § 2012a of Title 9). Any amount to be transferred shall be used as provided by a Joint Resolution of the Legislative Assembly.
(g) Reports to the Legislative Assembly.-Every month, the President of the Government Development Bank for Puerto Rico, the Executive Director of the Puerto Rico Infrastructure Financing Authority, and the Executive Director of the Highway and Transportation Authority shall file a joint report with the Legislative Assembly on the use of the Infrastructure Financing Authority Special Economic Assistance Fund. Likewise, said report shall include the balance of the funds and amounts collected as a result of the taxes imposed herein. Said monthly report shall be filed with the Office of the Secretary of the Senate and the Office of the Clerk of the House of Representatives on or before the fifteenth (15 th) day of each month and shall state in detail the balance, transactions, distribution, and uses given to such Special Fund.
History —Jan. 31, 2011, No. 1, added as § 3060.11A on Jan. 15, 2015, No. 1, § 2.08; Mar. 13, 2015, No. 29, § 6.