2023 Laws of Puerto Rico › TITLE THREE - Executive (§§ 1 — 9311) › Chapter 114 - Government of the Commonwealth of Puerto Rico Special Fiscal and Operational Sustainability Act (§§ 9101 — 9153) › Subchapter II - Measures To Cut Back On Spending In The Executive Branch (§§ 9111 — 9129) › § 9128 - Expenditures and lease agreement reduction plan

Within a period of thirty (30) days as of the approval of this Act, the Entities of the Executive Branch shall submit to the Office of Management and Budget a list of all their lease agreements in effect, the amount thereof, and a summary of the reason for the execution thereof. Those lease agreements that must be kept by mandate of law or to meet an obligation not subject to discretion, or to preserve an essential service for the citizenry shall be specified.
The Office of Management and Budget may direct not to renew or modify said leasing agreements upon their expiration and subsequent execution, except when such action is detrimental to an essential service or entails a greater financial burden. In said analysis, the Office of Management and Budget may also consider the possibility of consolidating some operations of several agencies in the same location and renegotiate the terms and amount of the lease agreements in order to attain more favorable conditions.
Furthermore, all lease agreements or lease letter of intent shall adhere to the following guidelines:
(a) No agreement may be renewed nor a new agreement may be executed, nor the amount paid for a lease may be increased without the previous authorization of the Office of Management and Budget.
(b) Every Entity of the Executive Branch, with the assistance of the Office of Management and Budget, shall analyze the alternative of not renewing lease agreements upon their expiration, when it is feasible for such entity to consolidate the operations of the activities conducted in a leased building within their existing facilities or in any other available public facility.
(c) Every Entity of the Executive Branch that has a lease agreement in effect and is considering the renewal thereof, or that intends to execute a lease agreement, shall request a lease proposal from the Public Buildings Authority and/or any other Entity of the Executive Branch, municipalities, or other Government Branch that could have space available in order to evaluate the cost-effectiveness of entering into a new agreement with the government entity. It shall be deemed to be cost-effective to enter into a new lease agreement with a government entity when:
(1) A constant and continuous reduction for such operating expense greater than fifteen percent (15%) is projected;
(2) moving the operations of the agency is not detrimental to the rendering of the services; and
(3) there is no legal impediment therefor.
(d) Every lease agreement entered into in contravention with these provisions shall be null.
The Office of Management and Budget shall have discretion to make exceptions to the provisions herein in all lease agreements, when so required by Federal or State law or a court order; it is essential to protect the health, safety, and welfare of the citizenry and/or public employees; and when it is necessary to carry out a ministerial duty of the agency in question to prevent any impairment to the public service.
History —June 17, 2014, No. 66, § 22.