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PC 1006

Para enmendar los Artículos 1.008, 1.010 y 2.003 de la Ley 107-2020, según enmendada, conocida como el “Código Municipal de Puerto Rico”, a los fines de facultar a los municipios para delegar la administración y operación de sus unidades administrativas a entidades privadas mediante el modelo de Alianzas Público Privadas; autorizar la adopción de sistemas de gestión de la empresa privada; y para otros fines relacionados.

2025-2028 Session

Bill allows Puerto Rico municipalities to privatize administrative operations through public-private partnerships and adopt private sector management practices, raising accountability and equity concerns.

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Bill Summary · PC 1006

Legislative bill overview

Bill PC 1006 amends Puerto Rico's Municipal Code to allow municipalities to delegate the administration and operation of their administrative units to private entities through Public-Private Partnership (PPP) models. The bill also authorizes municipalities to adopt private sector management systems in their operations.

Why is this important

This legislation would significantly expand privatization options for municipal services across Puerto Rico, potentially affecting how basic services—from water and waste management to administrative functions—are delivered to residents. The outcome depends heavily on how PPP contracts are structured, monitored, and regulated to protect public interests while potentially improving efficiency.

Potential points of contention

  • Public service accountability: Delegating municipal administration to private entities raises concerns about transparency, public oversight, and whether profit motives align with community needs
  • Labor and employment impacts: Privatization could affect municipal employee job security, wages, and union protections, particularly in economically vulnerable communities
  • Regulatory framework gaps: The bill grants delegation authority but the existing municipal code amendments may lack sufficient safeguards regarding contract terms, performance standards, citizen recourse, and cost controls
  • Inequality risks: Privatized services may prioritize profitable areas, potentially leaving disadvantaged municipalities or neighborhoods underserved

Compiled from official sources — confirm details with the bill’s official record.

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