Collapse to view only § 2129. Ethics
- § 2121. Financial Oversight and Management Board
- § 2122. Location of Oversight Board
- § 2123. Executive Director and staff of Oversight Board
- § 2124. Powers of Oversight Board
- § 2125. Exemption from liability for claims
- § 2126. Treatment of actions arising from chapter
- § 2127. Budget and funding for operation of Oversight Board
- § 2128. Autonomy of Oversight Board
- § 2129. Ethics
§ 2121. Financial Oversight and Management Board
(a) Purpose
(b) Establishment
(1) Puerto Rico
(2) Constitutional basis
(c) TreatmentAn Oversight Board established under this section—
(1) shall be created as an entity within the territorial government for which it is established in accordance with this subchapter; and
(2) shall not be considered to be a department, agency, establishment, or instrumentality of the Federal Government.
(d) Oversight of territorial instrumentalities
(1) Designation
(A) In general
(B) Budgets and reports
(C) Separate Instrumentality Budgets and reports
(D) Inclusion in Territory Fiscal Plan
(E) Separate Instrumentality Fiscal Plans
(2) Exclusion
(A) In general
(B) Treatment
(e) Membership
(1) In general
(A) The Oversight Board shall consist of seven members appointed by the President who meet the qualifications described in subsection (f) and section 2129(a) of this title.
(B) The Board shall be comprised of one Category A member, one Category B member, two Category C members, one Category D member, one Category E member, and one Category F member.
(2) Appointed members
(A) The President shall appoint the individual members of the Oversight Board, of which—
(i) the Category A member should be selected from a list of individuals submitted by the Speaker of the House of Representatives;
(ii) the Category B member should be selected from a separate, non-overlapping list of individuals submitted by the Speaker of the House of Representatives;
(iii) the Category C members should be selected from a list submitted by the Majority Leader of the Senate;
(iv) the Category D member should be selected from a list submitted by the Minority Leader of the House of Representatives;
(v) the Category E member should be selected from a list submitted by the Minority Leader of the Senate; and
(vi) the Category F member may be selected in the President’s sole discretion.
(B) After the President’s selection of the Category F Board member, for purposes of subparagraph (A) and within a timely manner—
(i) the Speaker of the House of Representatives shall submit two non-overlapping lists of at least three individuals to the President; one list shall include three individuals who maintain a primary residence in the territory or have a primary place of business in the territory;
(ii) the Senate Majority Leader shall submit a list of at least four individuals to the President;
(iii) the Minority Leader of the House of Representatives shall submit a list of at least three individuals to the President; and
(iv) the Minority Leader of the Senate shall submit a list of at least three individuals to the President.
(C) If the President does not select any of the names submitted under subparagraphs (A) and (B), then whoever submitted such list may supplement the lists provided in this subsection with additional names.
(D) The Category A member shall maintain a primary residence in the territory or have a primary place of business in the territory.
(E) With respect to the appointment of a Board member in Category A, B, C, D, or E, such an appointment shall be by and with the advice and consent of the Senate, unless the President appoints an individual from a list, as provided in this subsection, in which case no Senate confirmation is required.
(F) In the event of a vacancy of a Category A, B, C, D, or E Board seat, the corresponding congressional leader referenced in subparagraph (A) shall submit a list pursuant to this subsection within a timely manner of the Board member’s resignation or removal becoming effective.
(G) With respect to an Oversight Board for Puerto Rico, in the event any of the 7 members have not been appointed by September 1, 2016, then the President shall appoint an individual from the list for the current vacant category by September 15, 2016, provided that such list includes at least 2 individuals per vacancy who meet the requirements set forth in subsection (f) and section 2129 of this title, and are willing to serve.
(3) Ex officio member
(4) Chair
(5) Term of service
(A) In general
(B) Removal
(C) Continuation of service until successor appointed
(D) Reappointment
(6) Vacancies
(f) Eligibility for appointmentsAn individual is eligible for appointment as a member of the Oversight Board only if the individual—
(1) has knowledge and expertise in finance, municipal bond markets, management, law, or the organization or operation of business or government; and
(2) prior to appointment, an individual is not an officer, elected official, or employee of the territorial government, a candidate for elected office of the territorial government, or a former elected official of the territorial government.
(g) No compensation for service
(h) Adoption of bylaws for conducting business of Oversight Board
(1) In general
(2) Activities requiring approval of majority of members
(3) Adoption of rules and regulations of territorial government
(4) Executive session
(Pub. L. 114–187, title I, § 101, June 30, 2016, 130 Stat. 553.)
§ 2122. Location of Oversight Board
The Oversight Board shall have an office in the covered territory and additional offices as it deems necessary. At any time, any department or agency of the United States may provide the Oversight Board use of Federal facilities and equipment on a reimbursable or non-reimbursable basis and subject to such terms and conditions as the head of that department or agency may establish.
(Pub. L. 114–187, title I, § 102, June 30, 2016, 130 Stat. 557.)
§ 2123. Executive Director and staff of Oversight Board
(a) Executive Director
(b) Staff
(c) Inapplicability of certain employment and procurement laws
(d) Staff of Federal agencies
(e) Staff of territorial government
(Pub. L. 114–187, title I, § 103, June 30, 2016, 130 Stat. 557.)
§ 2124. Powers of Oversight Board
(a) Hearings and sessions
(b) Powers of members and agents
(c) Obtaining official data
(1) From Federal government
(2) From territorial government
(d) Obtaining creditor information
(1) Upon request of the Oversight Board, each creditor or organized group of creditors of a covered territory or covered territorial instrumentality seeking to participate in voluntary negotiations shall provide to the Oversight Board, and the Oversight Board shall make publicly available to any other participant, a statement setting forth—
(A) the name and address of the creditor or of each member of an organized group of creditors; and
(B) the nature and aggregate amount of claims or other economic interests held in relation to the issuer as of the later of—
(i) the date the creditor acquired the claims or other economic interests or, in the case of an organized group of creditors, the date the group was formed; or
(ii) the date the Oversight Board was formed.
(2) For purposes of this subsection, an organized group shall mean multiple creditors that are—
(A) acting in concert to advance their common interests, including, but not limited to, retaining legal counsel to represent such multiple entities; and
(B) not composed entirely of affiliates or insiders of one another.
(3) The Oversight Board may request supplemental statements to be filed by each creditor or organized group of creditors quarterly, or if any fact in the most recently filed statement has changed materially.
(e) Gifts, bequests, and devises
(f) Subpoena power
(1) In general
(2) Failure to obey a subpoena
(3) Service of subpoenas
(g) Authority to enter into contracts
(h) Authority to enforce certain laws of the covered territory
(i) Voluntary agreement certification
(1) In generalThe Oversight Board shall issue a certification to a covered territory or covered territorial instrumentality if the Oversight Board determines, in its sole discretion, that such covered territory or covered territorial instrumentality, as applicable, has successfully reached a voluntary agreement with holders of its Bond Claims to restructure such Bond Claims—
(A) except as provided in subparagraph (C), if an applicable Fiscal Plan has been certified, in a manner that provides for a sustainable level of debt for such covered territory or covered territorial instrumentality, as applicable, and is in conformance with the applicable certified Fiscal Plan;
(B) except as provided in subparagraph (C), if an applicable Fiscal Plan has not yet been certified, in a manner that provides, in the Oversight Board’s sole discretion, for a sustainable level of debt for such covered territory or covered territorial instrumentality; or
(C) notwithstanding subparagraphs (A) and (B), if an applicable Fiscal Plan has not yet been certified and the voluntary agreement is limited solely to an extension of applicable principal maturities and interest on Bonds issued by such covered territory or covered territorial instrumentality, as applicable, for a period of up to one year during which time no interest will be paid on the Bond Claims affected by the voluntary agreement.
(2) EffectivenessThe effectiveness of any voluntary agreement referred to in paragraph (1) shall be conditioned on—
(A) the Oversight Board delivering the certification described in paragraph (1); and
(B) the agreement of a majority in amount of the Bond Claims of a covered territory or a covered territorial instrumentality that are to be affected by such agreement, provided, however, that such agreement is solely for purposes of serving as a Qualifying Modification pursuant to subsection 1
1 So in original. Probably should be “section”.
2231(g) of this title and shall not alter existing legal rights of holders of Bond Claims against such covered territory or covered territorial instrumentality that have not assented to such agreement until an order approving the Qualifying Modification has been entered pursuant to section 2231(m)(1)(D) of this title.(3) Preexisting voluntary agreements
(j) Restructuring filings
(1) In general
(2) Actions describedThe actions referred to in paragraph (1) are—
(A) the filing of a petition; or
(B) the submission or modification of a plan of adjustment.
(3) Condition for plans of adjustment
(k) Civil actions to enforce powers
(l) Penalties
(1) Acts prohibited
(2) Administrative discipline
(3) Report by Governor on disciplinary actions taken
(m) Electronic reporting
(n) Administrative support services
(o) Investigation of disclosure and selling practices
(p) Findings of any investigation
(Pub. L. 114–187, title I, § 104, June 30, 2016, 130 Stat. 558.)
§ 2125. Exemption from liability for claims
The Oversight Board, its members, and its employees shall not be liable for any obligation of or claim against the Oversight Board or its members or employees or the territorial government resulting from actions taken to carry out this chapter.
(Pub. L. 114–187, title I, § 105, June 30, 2016, 130 Stat. 561.)
§ 2126. Treatment of actions arising from chapter
(a) Jurisdiction
(b) Appeal
(c) Timing of relief
(d) Expedited consideration
(e) Review of Oversight Board certifications
(Pub. L. 114–187, title I, § 106, June 30, 2016, 130 Stat. 562.)
§ 2127. Budget and funding for operation of Oversight Board
(a) Submission of budget
(b) Funding
The Oversight Board shall use its powers with respect to the Territory Budget of the covered territory to ensure that sufficient funds are available to cover all expenses of the Oversight Board.
(1) Permanent funding
(2)
(A) Initial funding
(B) Termination
(3) Remission of excess funds
(Pub. L. 114–187, title I, § 107, June 30, 2016, 130 Stat. 562.)
§ 2128. Autonomy of Oversight Board
(a) In general
Neither the Governor nor the Legislature may—
(1) exercise any control, supervision, oversight, or review over the Oversight Board or its activities; or
(2) enact, implement, or enforce any statute, resolution, policy, or rule that would impair or defeat the purposes of this chapter, as determined by the Oversight Board.
(b) Oversight Board legal representation
(Pub. L. 114–187, title I, § 108, June 30, 2016, 130 Stat. 563.)
§ 2129. Ethics
(a) Conflict of interest
(b) Financial disclosure
(Pub. L. 114–187, title I, § 109, June 30, 2016, 130 Stat. 563; Pub. L. 117–286, § 4(c)(45), Dec. 27, 2022, 136 Stat. 4359.)