Gov. Alejandro García-Padilla submitted late Thursday to the legislature the bill that will give way to the creation of a five-member fiscal oversight board that among other things, will be responsible for enforcing compliance with approved budgets.
The proposed “Fiscal Responsibility and Economic Revitalization of Puerto Rico Law” establishes the independent, non-partisan entity will also be responsible for approving the proposed Economic and Fiscal Growth plan and ensure that future Commonwealth and agency budgets comply with the provisions of that plan.
The Board will shall consist of five members to be appointed by the governor with the advice and consent of the Senate. Members must have knowledge, expertise and at least 10 years of experience in finance, management, law, economics or the organization or operation of business or governmental entities and hold not direct obligations of any public entity or be indirect holders of such obligations through investment companies with more than 10 percent of its funds invested in those obligations. Board members who have been an employee of a government agency over the past five years are ineligible.
The 71-page bill also proposes budget rules establishing that an independent consultant of the board’s choosing must validate revenue estimates. Another clause in the bill requires setting aside 2.5 percent of the total budget that may not be used unless approved under the terms of the Fiscal Responsibility and Economic Revitalization of Puerto Rico Law.