Newly Enacted Legislation in Puerto Rico Digital Registry Act of Vending and Automated Machines, Act

The Puerto Rico Legislature recently adopted Act No. 217-2014, also known as the Digital Registry Act of Vending and Automated
Machines. This law applies to commercial establishments and businesses that operate vending and automated machines, including
electronic video games, snack and soda dispensers, and automated teller machines (ATMs). Act No. 217-2014 establishes a digital registry
within the Office of Permits Management (OGPe, by its Spanish acronym) designed to maintain a centralized and complete record of
these machines operating throughout the Island. With the aim of improving current enforcement and tax collection initiatives of
the central and municipal governments, the Act’s primary objective is to establish a digital label or tag that will track each machine by
assigning it a unique identification number. A commercial establishment will be required to attach the digital tag to each machine, which shall contain the name and location of the
business authorized to operate the machine, the exact location of the machine within the establishment, and the name and telephone
number of the owner. In addition, the tag will provide other relevant information of the commercial establishment or business with regards to any applicable permits, certifications, licenses and registrations. Under normal circumstances, the registration
process for the machines will be a one-time requirement by OGPe and shall be completed by the Agency within a 24-hour timeframe. If
the business location changes or the machine is moved to another location, the owner shall notify OGPe within a seven (7) day period
after the change. In terms of enforcement and penalties, OGPe
may impose administrative fines to business owners ranging between $500 and $5,000 per violation for non-compliance with the Act’s
requirements. Although the Act entered into effect immediately upon its approval, requirements pertaining to the registration of the vending and automated machines shall be effective 180 days after its approval. Also, the Act requires OGPe to adopt a regulation
providing the requirements to be followed by all businesses subject to the new law. Please note that the matters discussed in this
memorandum are prepared for informational purposes only. This memorandum is not intended as and does not constitute legal
advice. If you need additional information regarding Act 217-2014 or how it may affect your operations, please contact one of the
attorneys in our Environmental, Zoning and Land Use Practice Groups.