Opinion ID: 200439
Heading Depth: 4
Heading Rank: 1

Heading: The Enabling Act

Text: The enabling act that created PRCCCC, 24 P.R. Laws Ann. §§ 343-343k (2000), does not by its terms structure PRCCCC to be an arm of the state. In fact, it suggests exactly the opposite. The act creates an entity which is independent and separate from any other agency or instrumentality of the Government of the Commonwealth of Puerto Rico. Id. § 343a. Moreover, PRCCCC is explicitly empowered to enter into contracts with the state, specifically the Commonwealth's Department of Health, the University of Puerto Rico, and any other bodies or instrumentalities of the Commonwealth of Puerto Rico.14 Id. § 434b(n). Further, the act provides that PRCCCC may borrow money from the Commonwealth, id. § 343b(g), and that the Commonwealth will charge it rent for use of its building, which shall help to amortize the debt for a period of thirty (30) years, id. § 343g. The Board is authorized to create a budget, which it must submit to the legislature, but the budget is required to stay within the limits of [PRCCCC's] estimated income so as to keep from incurring 14 In PRCCCC's favor is that it has been exempted from all taxes and fees collected by the government of Puerto Rico and its political subdivisions. Id. § 343e. By like token, that very language indicates it is not a political subdivision. In reference to PRCCCC's tax exempt status, FMC executive Watson observes that many of the private hospitals he has dealt with are also exempt from local taxes and duties. -25- shortfalls. Id. § 343h. Importantly, the act does not say the treasury of the Commonwealth will pay for those shortfalls.15 Nonetheless, in PRCCCC's favor, the act does not contain language declaring that the Commonwealth is not responsible for PRCCCC's debt, as was true of the statutory schemes in Metcalf & Eddy, see 991 F.2d at 940, and Royal Caribbean Corp. v. Puerto Rico Ports Authority, 973 F. 2d 8, 11 (1st Cir. 1992). In that sense, this is a closer case.