View all text of Subchapter II [§ 2141 - § 2152]
§ 2144. Review of activities to ensure compliance with Fiscal Plan
(a) Submission of legislative acts to Oversight Board
(1) Submission of acts
(2) Cost estimate; certification of compliance or noncomplianceThe Governor shall include with each law submitted to the Oversight Board under paragraph (1) the following:
(A) A formal estimate prepared by an appropriate entity of the territorial government with expertise in budgets and financial management of the impact, if any, that the law will have on expenditures and revenues.
(B) If the appropriate entity described in subparagraph (A) finds that the law is not significantly inconsistent with the Fiscal Plan for the fiscal year, it shall issue a certification of such finding.
(C) If the appropriate entity described in subparagraph (A) finds that the law is significantly inconsistent with the Fiscal Plan for the fiscal year, it shall issue a certification of such finding, together with the entity’s reasons for such finding.
(3) NotificationThe Oversight Board shall send a notification to the Governor and the Legislature if—
(A) the Governor submits a law to the Oversight Board under this subsection that is not accompanied by the estimate required under paragraph (2)(A);
(B) the Governor submits a law to the Oversight Board under this subsection that is not accompanied by either a certification described in paragraph (2)(B) or (2)(C); or
(C) the Governor submits a law to the Oversight Board under this subsection that is accompanied by a certification described in paragraph (2)(C) that the law is significantly inconsistent with the Fiscal Plan.
(4) Opportunity to respond to notification
(A) Failure to provide estimate or certification
(B) Submission of certification of significant inconsistency with Fiscal Plan and BudgetIn accordance with such procedures as the Oversight Board may establish, after sending a notification to the Governor and Legislature under paragraph (3)(C) that a law is significantly inconsistent with the Fiscal Plan, the Oversight Board shall direct the territorial government to—
(i) correct the law to eliminate the inconsistency; or
(ii) provide an explanation for the inconsistency that the Oversight Board finds reasonable and appropriate.
(5) Failure to comply
(6) Preliminary review of proposed acts
(b) Effect of approved Fiscal Plan on contracts, rules, and regulations
(1) Transparency in contracting
(2) Authority to review certain contracts
(3) Sense of Congress
(4) Authority to review certain rules, regulations, and executive orders
(5) Failure to comply
(c) Restrictions on budgetary adjustments
(1) Submissions of requests to Oversight Board
(2) No action permitted until analysis received
(3) Prohibition on action until Oversight Board is appointed
(A) During the period after a territory becomes a covered territory and prior to the appointment of all members and the Chair of the Oversight Board, such covered territory shall not enact new laws that either permit the transfer of any funds or assets outside the ordinary course of business or that are inconsistent with the constitution or laws of the territory as of June 30, 2016, provided that any executive or legislative action authorizing the movement of funds or assets during this time period may be subject to review and rescission by the Oversight Board upon appointment of the Oversight Board’s full membership.
(B) Upon appointment of the Oversight Board’s full membership, the Oversight Board may review, and in its sole discretion, rescind, any law that—
(i) was enacted during the period between, with respect to Puerto Rico, May 4, 2016; or with respect to any other territory, 45 days prior to the establishment of the Oversight Board for such territory, and the date of appointment of all members and the Chair of the Oversight Board; and
(ii) alters pre-existing priorities of creditors in a manner outside the ordinary course of business or inconsistent with the territory’s constitution or the laws of the territory as of, in the case of Puerto Rico, May 4, 2016, or with respect to any other territory, 45 days prior to the establishment of the Oversight Board for such territory;
but such rescission shall only be to the extent that the law alters such priorities.
(d) Implementation of Federal programsIn taking actions under this chapter, the Oversight Board shall not exercise applicable authorities to impede territorial actions taken to—
(1) comply with a court-issued consent decree or injunction, or an administrative order or settlement with a Federal agency, with respect to Federal programs;
(2) implement a federally authorized or federally delegated program;
(3) implement territorial laws, which are consistent with a certified Fiscal Plan, that execute Federal requirements and standards; or
(4) preserve and maintain federally funded mass transportation assets.
(Pub. L. 114–187, title II, § 204, June 30, 2016, 130 Stat. 570.)