Para enmendar las secciones 1.2, 1.3, 1.6, 1.7, 3.1 y 3.4 de la Ley 69-1991, según enmendada, conocida como “Ley para Regular los Depósitos de Fondos Públicos y para Proveer sobre su Seguridad”, con el propósito de disponer para que las entidades gubernamentales, según son definidas en dicha Ley, vengan obligadas a utilizar como una institución financiera depositaria de fondos públicos, a todo banco, institución de ahorro y préstamos o compañía de fideicomisos que ofrezca el interés más alto, sobre todos los depósitos de fondos públicos que hagan las mismas, independientemente de si el banco, institución de ahorro y préstamos o compañía de fideicomisos hace o no, negocios en la jurisdicción de Puerto Rico; y para otros fines relacionados.

2025-2028 Session

Puerto Rico bill mandates government entities deposit public funds with highest-bidding financial institutions globally, eliminating local banking preferences to maximize interest income.

Referido a Comisión(es)

Legislative bill overview

Bill PC 304 amends Puerto Rico's 1991 law regulating public fund deposits to require government entities to deposit public funds with whichever financial institution (bank, savings and loan, or trust company) offers the highest interest rate, regardless of whether that institution operates in Puerto Rico's jurisdiction. The bill mandates this interest-rate maximization approach across all public sector deposits.

Why is this important

Public fund deposits represent substantial sums that generate interest income for government budgets. This policy could increase government revenue through higher interest earnings, but it also fundamentally changes how Puerto Rico's government selects financial institutions for public deposits. The shift from relationship-based or jurisdiction-based banking relationships to purely interest-rate-driven selection could significantly impact local financial institutions and government operational practices.

Potential points of contention

Local economic impact: Mandating deposits with non-local institutions could disadvantage Puerto Rico-based banks, potentially reducing their stability, competitiveness, and ability to finance local economic development

Operational and security concerns: Using institutions outside Puerto Rico's jurisdiction may complicate fund access, regulatory oversight, deposit insurance verification, and emergency liquidity management for government operations

Administrative burden: Requiring constant market monitoring to identify the "highest interest" rate creates ongoing compliance costs and creates procurement complexity without exception clauses for relationship stability or operational necessity