Puerto Rico's Legal System: Laws And Regulations Explained

Puerto Rico is an unincorporated territory of the United States, and its legal system is a mix of civil law and common law systems. The territory has its own constitution, which was ratified in 1952 and approved by Congress, and its own laws, which include the constitution, laws passed by the Puerto Rico Legislative Assembly, and decisions by courts that interpret Puerto Rico laws. The US Constitution is the supreme law of the US and applies to Puerto Rico, but the territory's residents do not have the full protection of the Constitution. While Puerto Rico can make its own laws, US federal law takes precedence if there is a conflict. The territory's legal system has been historically and politically influenced by Spain and the US.

Puerto Rico's legal system

After the United States gained control of Puerto Rico in 1898, the American government revised the Spanish Civil Code of Puerto Rico, incorporating provisions of the 1902 Louisiana Code. This was due to the fact that Louisiana, like Puerto Rico, had been a colony of Spain. The Puerto Rican legal system is therefore a hybrid of the federal and the insular.

The United States government established the Puerto Rico Federal Relations Act to allow for the internal structure of Puerto Rico's government through its own constitution, which was adopted in 1952 and approved by Congress. The Constitution of the Commonwealth of Puerto Rico provides for a system of government with three branches: executive, legislative, and judicial. The Constitution of Puerto Rico and the Judiciary Act of the Commonwealth of Puerto Rico govern the judicial branch, which has three levels: the Supreme Court, the Court of Appeals, and the Court of First Instance. The Supreme Court of Puerto Rico is the highest interpreter of the Constitution of Puerto Rico, and its decisions are not reviewable in another forum except in those cases in which the Federal Supreme Court has jurisdiction to review, in accordance with the principle of supremacy of the Constitution of the United States.

Puerto Rico has a bicameral legislature, named the Legislative Assembly of Puerto Rico, which consists of the House of Representatives and the Senate. The House of Representatives has 51 members representing 40 districts, and 11 at-large seats. Representatives serve four-year terms. The Senate has 27 members, with 16 representing eight districts; the other 11 members are elected based on the populations of the eight general districts. Senators serve a four-year term.

Puerto Rico also has its own laws, including the Puerto Rico Constitution, laws passed by the Legislative Assembly, and decisions by courts that interpret Puerto Rico laws. The territory's laws are often interpreted by the Supreme Court of Puerto Rico and the Court of Appeals of Puerto Rico. The federal Puerto Rico District Court also issues decisions that may affect Puerto Rico residents. The First Circuit Court of Appeals holds the authority to review decisions by the Puerto Rico District Court. Sometimes the U.S. Supreme Court may review a case that has been appealed from the First Circuit or from the Supreme Court of Puerto Rico.

US federal law in Puerto Rico

Puerto Rico is an unincorporated territory of the United States. This means that while it is under US sovereignty, and US federal law applies in the territory, it is not a state of the American Union and its residents have no voting representation in the US Congress.

The US Constitution is the supreme law of the US, and federal laws include statutes that are periodically codified in the US Code, decisions by courts that interpret federal laws, and regulations issued by federal administrative agencies to implement federal laws.

Most, but not all, federal laws apply to Puerto Rico. Since the establishment of the Federal Relations Act of 1950, all federal laws that are "not locally inapplicable" are automatically the law of the land in Puerto Rico. Following the 1950 and 1952 legislation, only two district court decisions have held that a particular federal law, which does not specifically exclude or treat Puerto Rico differently, is inapplicable to Puerto Rico. The more recent decision was vacated on appeal.

The legal system of Puerto Rico is a mix of civil law and common law systems. It is the only current US jurisdiction whose legal system operates primarily in a language other than American English, namely Spanish. Puerto Rico's legal system is based on the Spanish Civil Code, which is part of the Law of Spain. After the US assumed control of Puerto Rico in 1901, it initiated legal reforms that resulted in the adoption of codes of criminal law, criminal procedure, and civil procedure modelled on those in California at the time.

The judicial branch is headed by the Chief Justice of the Puerto Rico Supreme Court, which is the only appellate court required by the Constitution. All other courts are created by the Legislative Assembly of Puerto Rico. Cases of a federal nature are heard in the United States District Court for the District of Puerto Rico.

Puerto Rico's constitution

Puerto Rico is an unincorporated territory of the United States, and its legal system is a mix of civil law and common law systems. The Constitution of the Commonwealth of Puerto Rico is the primary organising law for the territory. It was ratified by the people of Puerto Rico in a referendum on 3 March 1952 and proclaimed into effect by Governor Luis Muñoz Marín on 25 July 1952, celebrated as Constitution Day. The Constitution outlines the duties, powers, structures and functions of the Puerto Rican government.

The Constitution is bound by the US Constitution, and under it, Puerto Rico is neither a sovereign country nor a US state. The territory is subject to the sovereignty of the US federal government, which is responsible for monetary policy, foreign relations, defence, and other enumerated powers. The local government of Puerto Rico is responsible for education, law enforcement, elections, and other reserved powers. Both governments share concurrent powers, including taxation and fiscal policy.

The Constitution contains nine articles, most of which describe the framework of the Puerto Rican government. Article One establishes the government of the unincorporated territory, declaring that the source of the government's power is the people. It also establishes a Republican form of government, divided into three branches (legislative, executive and judicial), and specifies the territorial jurisdiction of the document, as well as the seat of the government, which is the city of San Juan.

Article Two is the Bill of Rights, which resembles the US Constitution's Bill of Rights. It outlines numerous individual rights, including freedom of assembly, freedom of the press, freedom of religion, freedom of speech, freedom from unreasonable searches and seizures, security in personal effects, and freedom from warrants issued without probable cause. It also establishes that "the dignity of the human being is inviolable" and that all men are equal before the law. It prohibits discrimination based on race, colour, sex, birth, social origin or condition, or political or religious ideas.

Article Three establishes a bicameral territorial legislature, composed of the Senate and the House of Representatives. It sets out the composition of each house and the requirements for membership, such as age, residency, and citizenship. It also outlines the legislative process, including the introduction, consideration, and passage of bills.

Article Four describes the powers, structure, functions, and responsibilities of the Governor of Puerto Rico, who is the executive branch of the government. It establishes the term length, requirements to hold office, and the role of the Governor as commander-in-chief of the militia. It also outlines the Governor's duties, such as executing the laws, calling the Legislative Assembly into special sessions, and appointing officers.

Article Five describes the powers, structure, functions, responsibilities, and legal scope of the Supreme Court of Puerto Rico, which is the judicial branch of the government. It establishes that the Supreme Court is the court of last resort and must be composed of a Chief Justice and several Associate Justices. It also sets out the process for appointing judges.

Article Six authorises the Legislative Assembly to create, abolish, consolidate, and reorganise municipalities, as well as change their territorial limits and determine their functions. It also authorises the Commonwealth to impose and collect taxes and gives the Legislative Assembly the power to contract and authorise the contracting of debts.

Article Seven establishes the rules for amending the Constitution. It outlines the process for proposing and ratifying amendments, including the requirement for a referendum, and specifies that no amendment shall alter the Republican form of government or abolish the Bill of Rights.

Articles Eight and Nine contain transitory provisions, including the effective date of the Constitution and the continuation of existing laws, liabilities, rights, and proceedings.

Puerto Rico's citizenship

From 1899 to 1952, legislative acts declared most Puerto Rican residents and natives to be US citizens. The Jones-Shafroth Act of 1917, signed by President Woodrow Wilson, granted statutory citizenship to Puerto Ricans, meaning it was granted by an Act of Congress and not by the US Constitution. This Act also established US citizenship for those who had previously refused it and those who were absent when it was enacted.

The US Nationality Act of 1940 provided US citizenship for all persons born in Puerto Rico on or after April 11, 1899, residing in US territory on January 13, 1941, and not already US citizens under previous statutes. The 1952 US Immigration and Nationality Act revised the wording concerning Puerto Ricans, granting nationality to those born on or after April 11, 1899, and before January 13, 1941, and thereafter to Puerto Ricans at birth.

Despite being US citizens, people born in Puerto Rico are not protected by the Citizenship Clause of the 14th Amendment to the US Constitution. This means that Congress can unilaterally revoke their American citizenship. Puerto Ricans are also not covered by the full American Bill of Rights, only by a group of fundamental civil rights. They have no voting representative in Congress and are not eligible to vote in federal elections.

Puerto Rico has its own constitution, ratified in 1952, which provides citizens with a Bill of Rights similar to that in the US Constitution. Puerto Rico also has its own set of laws, including the constitution, laws passed by the Legislative Assembly, and decisions by courts that interpret Puerto Rico laws.

Puerto Rican citizenship is dependent on US citizenship and residency in Puerto Rico. It does not exist independently of US citizenship, as Puerto Rico is not a sovereign nation. If a Puerto Rican renounces their US citizenship, they would be considered stateless.

Puerto Rico's taxation

Puerto Rico residents are required to pay most types of federal taxes, including customs taxes, federal commodity taxes, and payroll taxes (also known as FICA taxes, which include Social Security, Medicare, and Unemployment taxes). In fiscal year 2021, Puerto Ricans on the island paid over $4 billion in federal taxes. However, most residents are not required to file federal income tax returns as the island's median income falls below the poverty threshold.

The main domestic statutory tax law in Puerto Rico is the Código de Rentas Internas de Puerto Rico (Internal Revenue Code of Puerto Rico). This code covers income tax, payroll taxes, gift taxes, estate taxes, and statutory excise taxes.

The Puerto Rico Sales and Use Tax (SUT) is applied to most sales in the territory. As of 2020, the tax rate is 11.5%, with 1.0% going to the municipality where the sale took place and 10.5% to the Government of Puerto Rico.

In addition to federal taxes, Puerto Rico residents are also taxed on their worldwide income by the Puerto Rican government, regardless of where the income is sourced. Non-residents are only taxed on their Puerto Rico-source income. The territory has a de minimis rule to avoid taxing very small amounts of income from personal services provided in Puerto Rico.

Puerto Rico has implemented several tax incentives to promote foreign investment and attract high-net-worth individuals. Act 20 and Act 22, enacted in 2012, provide significant tax benefits for US citizens who become bona fide residents of Puerto Rico. Under these Acts, qualifying residents can exclude their Puerto Rico-source income from US federal tax and receive a 100% tax exemption on dividend and interest income, among other incentives.

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