P.R. Laws tit. 21, § 4462
The leasing of stalls, stands, concessions, and any other commercial facility in the municipality’s marketplaces shall be carried out by notices of public bidding, except in the cases provided below. The municipality shall have the option to publish said notices in newspapers of national or regional circulation or in electronic media or the Internet, provided that the link to the notice of bidding is visible from the official website of the municipality, and that said website is accessible and available at the time of publication of said notice. Likewise, the notice published in any of said media should also be placed at the front of the stalls in question. If the bidding period elapses and no bid is received or those bids received were unreasonable in the judgment of the Bidding Board, then the latter may award the stall, stand, concession, or facility to be leased through a direct negotiation or in an open market to the person deemed best for the public interest, as provided in § 4461 of this title. The municipality shall review the rental rates of the marketplaces from time to time, pursuant to the criteria indicated in this section. Once the thirty (30)-day term to notify the renewal of the contract elapses, in accordance with this subsection the municipality may begin the process of notice and bidding, as provided in this section. Every lease contract of stalls, stands, concessions, and any other commercial facilities in the marketplaces shall be subject to the following conditions and standards:
(a) Term of duration of the lease contract and renewal.— The lease shall be for a term of not less than five (5) years, but in no case shall exceed ten (10) years, counting from the date the corresponding lease contract is signed. No later than thirty (30) days prior to the expiration date of the lease contract, it may be renewed without holding public bidding, subject to the lease rate in effect on the date of renewal of the contract, as fixed by the municipal ordinance to such effects, provided the lessor:
(1) Has complied with subsection (b) of this section;
(2) has complied with the regulations that govern marketplaces;
(3) is not delinquent in the payment of the lease;
(4) has paid up all the permits, licenses or authorizations required by the laws of Puerto Rico, if any, to engage in the sale, distribution or trade of a specific article, product or branch of business in which he/she is engaged, and
(5) his/her leasing record is unimpeachable.
The fact that a lessor holds more than one stall, stand, concession, or facility for conducting business transactions; stands, concessions, or facilities in any of the marketplaces operated by the municipality, unless such additional stall is to be used for the purpose of storing items, merchandise, machinery, equipment, and/or goods used directly in or as a complement to the additional stall leased where the business is located, shall be grounds for not renewing the lease contract. Storage shall not be considered a stall or an additional business for the purposes of this subtitle; provided, that the goods stored therein are directly related to the stall or principal business, and that are indispensable for the operation thereof. Said storage shall meet the following requirements:
(1). The lessee may not have more than one stand or stall devoted to storage use.
(2). The stand devoted to storage shall be kept clean, presentable, and accessible.
(3). The goods, equipment, and materials stored therein are for the sole use of the stand or business located in the marketplace.
(4). A business owner shall never be the leaseholder of two (2) stands unless one (1) of the stands is devoted to storage in support of the principal business. In these cases, the public shall not be allowed physical or visual access to the stored goods.
(5). Third-party transactions in or from the storage shall be prohibited.
(b) Obligations of the lessor.— The lessor shall give faithful compliance to the regulations that govern marketplaces, and shall not assign or cede his/her contract, nor may lease or sublease his/her lot, booth, or any other facility thereof to any other natural or juridical person unless there is a written resolution of the Bidding Board of the corresponding municipality which authorizes it. Any change of use, transfer, assignment, sale, gift, lease, sublease, or any other transaction that has not been approved by said Board, shall be void.
(c) Auction of vacant lot.— Any booth, lot or any other commercial facility of a marketplace that is vacated due to breach of contract, resolution, recission, termination thereof, or any other cause, shall be auctioned according to the provisions of this subtitle and under the terms and conditions specified in the auction.
(d) Displacement of lease by reconstruction.— Any lessor who is displaced from his/her booth or lot in a marketplace due to any reconstruction or remodeling thereof, shall be entitled to be granted a lot or booth without having to participate in any bidding whatsoever, provided he/she has complied with the applicable norms and regulations. The lot shall be granted for the remaining term of his/her contract, or for a term of five (5) years, whichever is greater, counting from the date the same lot or any other one is granted to him/her.
What is provided above shall apply while the use of the facilities under lease is not altered.
(e) Successors of lease.— In the event of the death of a lessor, his/her heirs or successors designated in the declaration of heirship, shall be his/her successors as lessors for the remaining term of the lease contract signed by the principal add the municipality. Such heirs or successors shall have the right to benefit from the renewal of the lease contract without the bidding requirement, if the case merits it for financial and social reasons, provided they have complied with the provisions of subsections (a) and (b) of this section.
History —Aug. 30, 1991, No. 81, § 10.012; Apr. 13, 1995, No. 36, § 32; renumbered as § 9.012 on Jan. 10, 1999, No. 30, § 3; Mar. 31, 2015, No. 45, § 1.