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48 U.S.C. § 2127 — Financial Oversight and Management Board
Federal law — U.S. Code and appendices · legal_authorities
**(a) Purpose** The purpose of the Oversight Board is to provide a method for a covered territory to achieve fiscal responsibility and access to the capital markets.
**(b) Establishment**
(1) **Puerto Rico** — A Financial Oversight and Management Board is hereby established for Puerto Rico.
(2) **Constitutional basis** — The Congress enacts this chapter pursuant to article IV, section 3 of the Constitution of the United States, which provides Congress the power to dispose of and make all needful rules and regulations for territories.
**(c) Treatment** An 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* — An Oversight Board, in its sole discretion at such time as the Oversight Board determines to be appropriate, may designate any territorial instrumentality as a covered territorial instrumentality that is subject to the requirements of this chapter.
(B) *Budgets and reports* — The Oversight Board may require, in its sole discretion, the Governor to submit to the Oversight Board such budgets and monthly or quarterly reports regarding a covered territorial instrumentality as the Oversight Board determines to be necessary and may designate any covered territorial instrumentality to be included in the Territory Budget; except that the Oversight Board may not designate a covered territorial instrumentality to be included in the Territory Budget if applicable territory law does not require legislative approval of such covered ter
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Source file: Laws/federal/codes/united-states-code/title-48/section-2127-financial-oversight-and-management-board--4af35c7285.md
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Source location: Title 48, Chapter 20, § 2127; chapter-020-puerto-rico-oversight-management-and-economic-stability.md
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**(a) Purpose** The purpose of the Oversight Board is to provide a method for a covered territory to achieve fiscal responsibility and access to the capital markets.
**(b) Establishment**
(1) **Puerto Rico** — A Financial Oversight and Management Board is hereby established for Puerto Rico.
(2) **Constitutional basis** — The Congress enacts this chapter pursuant to article IV, section 3 of the Constitution of the United States, which provides Congress the power to dispose of and make all needful rules and regulations for territories.
**(c) Treatment** An 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* — An Oversight Board, in its sole discretion at such time as the Oversight Board determines to be appropriate, may designate any territorial instrumentality as a covered territorial instrumentality that is subject to the requirements of this chapter.
(B) *Budgets and reports* — The Oversight Board may require, in its sole discretion, the Governor to submit to the Oversight Board such budgets and monthly or quarterly reports regarding a covered territorial instrumentality as the Oversight Board determines to be necessary and may designate any covered territorial instrumentality to be included in the Territory Budget; except that the Oversight Board may not designate a covered territorial instrumentality to be included in the Territory Budget if applicable territory law does not require legislative approval of such covered territorial instrumentality’s budget.
(C) *Separate Instrumentality Budgets and reports* — The Oversight Board in its sole discretion may or, if it requires a budget from a covered territorial instrumentality whose budget does not require legislative approval under applicable territory law, shall designate a covered territorial instrumentality to be the subject of an Instrumentality Budget separate from the applicable Territory Budget and require that the Governor develop such an Instrumentality Budget.
(D) *Inclusion in Territory Fiscal Plan* — The Oversight Board may require, in its sole discretion, the Governor to include a covered territorial instrumentality in the applicable Territory Fiscal Plan. Any covered territorial instrumentality submitting a separate Instrumentality Fiscal Plan must also submit a separate Instrumentality Budget.
(E) *Separate Instrumentality Fiscal Plans* — The Oversight Board may designate, in its sole discretion, a covered territorial instrumentality to be the subject of an Instrumentality Fiscal Plan separate from the applicable Territory Fiscal Plan and require that the Governor develop such an Instrumentality Fiscal Plan. Any covered territorial instrumentality submitting a separate Instrumentality Fiscal Plan shall also submit a separate Instrumentality Budget.
(2) **Exclusion**
(A) *In general* — An Oversight Board, in its sole discretion, at such time as the Oversight Board determines to be appropriate, may exclude any territorial instrumentality from the requirements of this chapter.
(B) *Treatment* — A territorial instrumentality excluded pursuant to this paragraph shall not be considered to be a covered territorial instrumentality.
**(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section2129/a&num=0&edition=prelim).
(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](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section2129&num=0&edition=prelim), and are willing to serve.
(3) **Ex officio member** — The Governor, or the Governor’s designee, shall be an ex officio member of the Oversight Board without voting rights.
(4) **Chair** — The voting members of the Oversight Board shall designate one of the voting members of the Oversight Board as the Chair of the Oversight Board (referred to hereafter in this chapter as the “Chair”) within 30 days of the full appointment of the Oversight Board.
(5) **Term of service**
(A) *In general* — Each appointed member of the Oversight Board shall be appointed for a term of 3 years.
(B) *Removal* — The President may remove any member of the Oversight Board only for cause.
(C) *Continuation of service until successor appointed* — Upon the expiration of a term of office, a member of the Oversight Board may continue to serve until a successor has been appointed.
(D) *Reappointment* — An individual may serve consecutive terms as an appointed member, provided that such reappointment occurs in compliance with paragraph (6).
(6) **Vacancies** — A vacancy on the Oversight Board shall be filled in the same manner in which the original member was appointed.
**(f) Eligibility for appointments** An 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** Members of the Oversight Board shall serve without pay, but may receive reimbursement from the Oversight Board for any reasonable and necessary expenses incurred by reason of service on the Oversight Board.
**(h) Adoption of bylaws for conducting business of Oversight Board**
(1) **In general** — As soon as practicable after the appointment of all members and appointment of the Chair, the Oversight Board shall adopt bylaws, rules, and procedures governing its activities under this chapter, including procedures for hiring experts and consultants. Such bylaws, rules, and procedures shall be public documents, and shall be submitted by the Oversight Board upon adoption to the Governor, the Legislature, the President, and Congress. The Oversight Board may hire professionals as it determines to be necessary to carry out this chapter.
(2) **Activities requiring approval of majority of members** — Under the bylaws adopted pursuant to paragraph (1), the Oversight Board may conduct its operations under such procedures as it considers appropriate, except that an affirmative vote of a majority of the members of the Oversight Board’s full appointed membership shall be required in order for the Oversight Board to approve a Fiscal Plan under [section 2141 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section2141&num=0&edition=prelim), to approve a Budget under [section 2142 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section2142&num=0&edition=prelim), to cause a legislative act not to be enforced under [section 2144 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section2144&num=0&edition=prelim), or to approve or disapprove an infrastructure project as a Critical Project under [section 2213 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section2213&num=0&edition=prelim).
(3) **Adoption of rules and regulations of territorial government** — The Oversight Board may incorporate in its bylaws, rules, and procedures under this subsection such rules and regulations of the territorial government as it considers appropriate to enable it to carry out its activities under this chapter with the greatest degree of independence practicable.
(4) **Executive session** — Upon a majority vote of the Oversight Board’s full voting membership, the Oversight Board may conduct its business in an executive session that consists solely of the Oversight Board’s voting members and any professionals the Oversight Board determines necessary and is closed to the public, but only for the business items set forth as part of the vote to convene an executive session.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Hearings and sessions** The Oversight Board may, for the purpose of carrying out this chapter, hold hearings, sit and act at times and places, take testimony, and receive evidence as the Oversight Board considers appropriate. The Oversight Board may administer oaths or affirmations to witnesses appearing before it.
**(b) Powers of members and agents** Any member or agent of the Oversight Board may, if authorized by the Oversight Board, take any action that the Oversight Board is authorized to take by this section.
**(c) Obtaining official data**
(1) **From Federal government** — Notwithstanding sections 552 (commonly known as the Freedom of Information Act), 552a (commonly known as the Privacy Act of 1974), and 552b (commonly known as the Government in the Sunshine Act) of title 5, the Oversight Board may secure directly from any department or agency of the United States information necessary to enable it to carry out this chapter, with the approval of the head of that department or agency.
(2) **From territorial government** — Notwithstanding any other provision of law, the Oversight Board shall have the right to secure copies, whether written or electronic, of such records, documents, information, data, or metadata from the territorial government necessary to enable the Oversight Board to carry out its responsibilities under this chapter. At the request of the Oversight Board, the Oversight Board shall be granted direct access to such information systems, records, documents, information, or data as will enable the Oversight Board to carry out its responsibilities under this chapter. The head of the entity of the territorial government responsible shall provide the Oversight Board with such information and assistance (including granting the Oversight Board di
Source: Supplied U.S. Code snapshot — release unconfirmed · 48 U.S.C. § 2141
Stored review status: release_metadata_unconfirmed. Explicit cross-reference supplied in source Markdown; currentness and applicability require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Submission of budget** The Oversight Board shall submit a budget for each fiscal year during which the Oversight Board is in operation, to the President, the House of Representatives Committee on Natural Resources and the Senate Committee on Energy and Natural Resources, the Governor, and the Legislature.
**(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** — Within 30 days after June 30, 2016, the territorial government shall designate a dedicated funding source, not subject to subsequent legislative appropriations, sufficient to support the annual expenses of the Oversight Board as determined in the Oversight Board’s sole and exclusive discretion.
(2)
(A) *Initial funding* — On the date of establishment of an Oversight Board in accordance with [section 2121(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section2121/b&num=0&edition=prelim) and on the 5th day of each month thereafter, the Governor of the covered territory shall transfer or cause to be transferred the greater of $2,000,000 or such amount as shall be determined by the Oversight Board pursuant to subsection (a) to a new account established by the territorial government, which shall be available to and subject to the exclusive control of the Oversight Board, without any legislative appropriations of the territorial government.
(B) *Termination* — The initial funding requirements under subparagraph (A) shall terminate upon the territorial government designating a dedicated funding source not subject to subsequent legislative appropriations under paragraph (1).
(3) **Remiss
Source: Supplied U.S. Code snapshot — release unconfirmed · 48 U.S.C. § 2144
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Executive Director** The Oversight Board shall have an Executive Director who shall be appointed by the Chair with the consent of the Oversight Board. The Executive Director shall be paid at a rate determined by the Oversight Board.
**(b) Staff** With the approval of the Chair, the Executive Director may appoint and fix the pay of additional personnel as the Executive Director considers appropriate, except that no individual appointed by the Executive Director may be paid at a rate greater than the rate of pay for the Executive Director unless the Oversight Board provides for otherwise. The staff shall include a Revitalization Coordinator appointed pursuant to subchapter V of this chapter. Any such personnel may include private citizens, employees of the Federal Government, or employees of the territorial government, provided, however, that the Executive Director may not fix the pay of employees of the Federal Government or the territorial government.
**(c) Inapplicability of certain employment and procurement laws** The Executive Director and staff of the Oversight Board may be appointed and paid without regard to any provision of the laws of the covered territory or the Federal Government governing appointments and salaries. Any provision of the laws of the covered territory governing procurement shall not apply to the Oversight Board.
**(d) Staff of Federal agencies** Upon request of the Chair, the head of any Federal department or agency may detail, on a reimbursable or nonreimbursable basis, and in accordance with the Intergovernmental Personnel Act of 1970 ([5 U.S.C. 3371–337](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title5-section3371–337&num=0&edition=prelim)5), any of the personnel of that department or agency to the Oversight Board
Source: Supplied U.S. Code snapshot — release unconfirmed · 48 U.S.C. § 2129
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Federal Points of Contact** At the request of the Revitalization Coordinator and within 30 days of receiving such a request, each Federal agency with jurisdiction over the permitting, or administrative or environmental review of private or public projects in Puerto Rico, shall name a Point of Contact who will serve as that agency’s liaison with the Revitalization Coordinator.
**(b) Federal grants and loans** For each Critical Project with a pending or potential Federal grant, loan, or loan guarantee application, the Revitalization Coordinator and the relevant Point of Contact shall cooperate with each other to ensure expeditious review of such application.
**(c) Expedited reviews and actions of Federal agencies** All reviews conducted and actions taken by any Federal agency relating to a Critical Project shall be expedited in a manner consistent with completion of the necessary reviews and approvals by the deadlines under the Expedited Permitting Process, but in no way shall the deadlines established through the Expedited Permitting Process be binding on any Federal agency.
Source: Supplied U.S. Code snapshot — release unconfirmed · 48 U.S.C. § 2101
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Federal law — U.S. Code and appendices · legal_authorities
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.
Source: Supplied U.S. Code snapshot — release unconfirmed · 48 U.S.C. § 2142
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Federal law — U.S. Code and appendices · legal_authorities
Not later than 18 months after June 30, 2016, the Comptroller General shall submit a report to the Committee on Natural Resources of the House of Representatives and the Committee on Energy and Natural Resources of the Senate describing—
(1) the conditions which led to the level of debt, which should be analyzed, per capita and based upon overall economic activity;
(2) how actions of the territorial government improved or impaired the territory’s financial conditions; and
(3) recommendations on non-fiscal actions, or policies that would not imperil America’s homeland and national security, that could be taken by Congress or the Administration to avert future indebtedness of territories, while respecting sovereignty and constitutional parameters.
Source: Supplied U.S. Code snapshot — release unconfirmed · 48 U.S.C. § 2213
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Annual report** Not later than 30 days after the last day of each fiscal year, the Oversight Board shall submit a report to the President, Congress, the Governor and the Legislature, describing—
(1) the progress made by the territorial government in meeting the objectives of this chapter during the fiscal year;
(2) the assistance provided by the Oversight Board to the territorial government in meeting the purposes of this chapter during the fiscal year;
(3) recommendations to the President and Congress on changes to this chapter or other Federal laws, or other actions of the Federal Government, that would assist the territorial government in complying with any certified Fiscal Plan;
(4) the precise manner in which funds allocated to the Oversight Board under [section 2127 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section2127&num=0&edition=prelim) and, as applicable, [section 2124(e) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title48-section2124/e&num=0&edition=prelim) have been spent by the Oversight Board during the fiscal year; and
(5) any other activities of the Oversight Board during the fiscal year.
**(b) Report on discretionary tax abatement agreements** Within six months of the establishment of the Oversight Board, the Governor shall submit a report to the Oversight Board documenting all existing discretionary tax abatement or similar tax relief agreements to which the territorial government, or any territorial instrumentality, is a party, provided that—
(1) nothing in this chapter shall be interpreted to limit the power of the territorial government or any territorial instrumentality to execute or modify discretionary tax abatement or similar tax relief agreements, or to enfo
Source: Supplied U.S. Code snapshot — release unconfirmed · 48 U.S.C. § 2162
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Federal law — U.S. Code and appendices · legal_authorities
Page 359
TITLE 48—TERRITORIES AND INSULAR POSSESSIONS
§ 2127
cient payment and administration of taxes
through the adoption of electronic reporting,
payment and auditing technologies.
(n) Administrative support services
Upon the request of the Oversight Board, the
Administrator of General Services or other ap-
propriate Federal agencies shall promptly pro-
vide to the Oversight Board, on a reimbursable
or non-reimbursable basis, the administrative
support services necessary for the Oversight
Board to carry out its responsibilities under this
chapter.
(o) Investigation of disclosure and selling prac-
tices
The Oversight Board may investigate the dis-
closure and selling practices in connection with
the purchase of bonds issued by a covered terri-
tory for or on behalf of any retail investors in-
cluding any underrepresentation of risk for such
investors and any relationships or conflicts of
interest maintained by such broker, dealer, or
investment adviser is as provided in applicable
laws and regulations.
(p) Findings of any investigation
The Oversight Board shall make public the
findings of any investigation referenced in sub-
section (o).
(Pub. L. 114–187, title I, § 104, June 30, 2016, 130
Stat. 558.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsecs. (a), (c), (g), (h),
(k), and (n), was in the original ‘‘this Act’’, meaning
Pub. L. 114–187, June 30, 2016, 130 Stat. 549, known as the
Puerto Rico Oversight, Management, and Economic
Stability Act and also as PROMESA, which is classified
principally to this chapter. For complete classification
of this Act to the Code, see Short Title note set out
under section 2101 of this title and Tables.
§ 2125. Exemption from liability for claims
The Oversight Board, its members,
Source: Supplied 2024 U.S. Code historical extraction · 48 U.S.C. § 2127
Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.