The Puerto Rico Court of Appeals has dismissed a challenge to new procurement regulations enacted by the Administration of General Services (ASG). The ruling affects the Autoridad Para El Financiamiento De La Infraestructura De Puerto Rico (AFI), which argued that the regulations were adopted improperly. The court found that AFI did not have the legal standing to bring the case, a decision that underscores the strict requirements for challenging administrative regulations in Puerto Rico.

The case, officially titled Autoridad Para El Financiamiento De La Infraestructura De Puerto Rico v. AdministraciĂłn De Servicios Generales Del Gobierno De Puerto Rico, was filed on August 13, 2026, under docket number TA2026RA00102. The ruling is significant as it clarifies the limitations on who can challenge the validity of administrative regulations in Puerto Rico.

Background

The dispute arose when AFI sought to challenge the Reglamento NĂşm. 9734, a new uniform regulation for purchases and contracts approved by ASG on February 9, 2026. AFI claimed that the regulation was invalid because ASG did not comply with the procedural requirements outlined in the Ley de Procedimiento Administrativo Uniforme (LPAU), which governs how regulations should be adopted in Puerto Rico.

AFI alleged that ASG failed to properly notify the public about the proposed regulation, including not providing the location where the public could review the full text of the regulation and not including a specific electronic address for public access. AFI argued that these omissions violated the LPAU, which mandates certain transparency and public participation measures during the regulatory process.

The ASG countered that AFI lacked the legal standing to challenge the regulation, asserting that the LPAU permits only individuals or private entities to file such challenges, not public corporations or instrumentalities like AFI. This disagreement over standing led to the court's examination of the case.

The Ruling

The court ruled to dismiss AFI's challenge, stating that the authority did not have the necessary legal standing to bring the case. The opinion emphasized that the LPAU defines a “person” as any natural or legal entity that is not an agency, and since AFI is a public corporation, it does not qualify as a person under the law.

The court stated, "la AFI no tiene legitimaciĂłn activa para presentar la acciĂłn sobre nulidad reglamentaria al amparo de la SecciĂłn 2.7 de la LPAU." This translates to "AFI does not have standing to file an action for the nullity of the regulation under Section 2.7 of the LPAU."

The ruling was issued by a panel of judges, including Judge RodrĂ­guez Casillas, Judge Barresi Ramos, and Judge Santiago CalderĂłn. The court concluded that the lack of standing rendered the case non-justiciable, meaning it could not be adjudicated by the court.

Impact

This ruling has significant implications for public corporations in Puerto Rico. It establishes that entities like AFI cannot challenge administrative regulations simply because they disagree with them. The decision reinforces the idea that only individuals or private entities have the right to contest the validity of regulations under the LPAU.

Moreover, this case highlights the importance of procedural compliance in the regulatory process. Agencies must ensure they follow all required steps when adopting new regulations, as failure to do so can lead to challenges. However, as demonstrated in this case, even if a regulation is procedurally flawed, not every entity has the right to challenge it in court.

What's Next

AFI may consider its options, but the ruling effectively closes the door on this particular challenge due to the lack of standing. There are no details available regarding any potential appeals or related cases pending in the court system.