P.R. Laws tit. 9, § 2023
(a) In light of the Fiscal Emergency, an Oversight Committee shall be constituted within a term that shall not exceed thirty (30) days after the effective date of this act. Such committee shall be entrusted with conducting a Financial and Operational Feasibility Study of the HTA and/or the ITA.
(b) Composition of the Oversight Committee.— The Oversight Committee shall be composed of the President of the Bank, the Secretary of the Treasury, the Director of the Office of Management and Budget (OMB), the President of the Senate of Puerto Rico or his/her representative, and the Speaker of the House of Representatives or his/her representative. The Oversight Committee shall conduct said Study and notify the beginning thereof in writing to the HTA and the ITA five (5) days before the Study begins. If the President of the Senate of Puerto Rico or the Speaker of the House of Representatives appoints a representative, said representative shall have at least (5) years of proven professional experience in business management, accounting, administration, and/or finance. The Committee shall hold its first meeting within five (5) days after the constitution thereof.
(c) Powers of the Oversight Committee.— As part of the oversight process, the Oversight Committee shall have all the powers needed to perform the following duties:
(1) To examine all the books and records of the HTA and the ITA; and
(2) To use the information and services of the employees of the HTA, the ITA, the Bank, the Department of the Treasury, the OMB, and any other government entity it deems necessary to conduct the Study.
(d) General provisions of the financial and operational feasibility study.— The Financial and Operational Feasibility Study of the HTA and/or the ITA shall be concluded within a term that shall not exceed thirty (30) days after the Committee has been constituted. Within five (5) days after the report [sic] has been concluded, the Oversight Committee shall submit the results thereof to the Governor of the Commonwealth of Puerto Rico, the President of the Senate of Puerto Rico, and the Speaker of the House of Representatives. Under no circumstances an extension to submit the results of the study shall be requested.
(e) Content of the financial and operational feasibility study.— The Study to be conducted by the Oversight Committee shall include all the information regarding the finances, administration, and operations of the HTA and/or the ITA, as appropriate, including, but not limited to, the probability or occurrence of the following conditions:
(1) Noncompliance with the payment of the principal of or interest on any obligation, including bonds, notes, or debentures of the HTA and/or the ITA.
(2) HTA and/or ITA’s noncompliance with any of the following transfers:
(A) Taxes withheld from employees;
(B) Retirement contributions made by employees;
(C) Any other responsibility provided by law.
(3) Any HTA and/or ITA’s debt or liability that has been delinquent for more than thirty (30) days.
(4) Any operating deficit of the HTA and/or the ITA that exceeds the two (2)-year period.
(5) Any projected increase in the operating deficit of the HTA and/or the ITA.
(6) Any potential interruption of the services offered by the HTA and/or the ITA.
(7) Any projected deficit in the general fund of the HTA and/or the ITA for the current fiscal year in excess of ten percent (10%) of the total projected revenues.
(f) Conclusion of the financial and operational feasibility study.— The study conducted by the Oversight Committee shall contain one of the following conclusions supported by a majority:
(1) There is a significant financial or operational problem, but it may be solved satisfactorily upon the execution of an Improvement Agreement between the Oversight Committee and the HTA and/or the ITA. Provided, That said conclusion shall be supported by unanimity of the members of the Oversight Committee; or
(2) There is a fiscal and/or operational emergency in the HTA and/or the ITA, which cannot be effectively solved through a plan or improvement agreement.
History —Jan. 15, 2015, No. 1, § 3.02.