,,ii #aad? ,,congress #a/ ,session ,s4 #bcha ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,decemb] #i1 #bjae ,mr4 ,hat* 7= himself1 ,ms4 ,murk[ski1 & ,mr4 ,grassley7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,f9ance ,a ,,bill ,to provide assi/ance & support to ! ,commonweal? ( ,pu]to ,rico4 #a4 ,%ort title 7a7 ,%ort title ,?is ,act may be cit$ z ! ,pu]to ,rico ,assi/ance ,act ( #bjae4 7b7 ,table ( cont5ts ,! table ( cont5ts = ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title4 ,,title ,i--,taxes ,sec4 #aja4 ,tempor>y employee payroll tax cut = resid5ts ( ,unit$ ,/ates possessions4 ,,title ,,ii--,public ,p5sions ,sec4 #bja4 ,/udy ( ,pu]to ,rico public p5sion debt4 ,sec4 #bjb4 ,report+ requirem5ts g5]ally applicable to ,/ate & local gov]nm5t p5sion plans4 ,sec4 #bjc4 ,annuity accumulation retirem5t plans ( employees ( ,/ate & local gov]nm5ts4 ,,title ,,iii--,pu]to ,rico ,f9ancial ,responsibility & ,managem5t ,assi/ance ,au?ority ,sec4 #cja4 ,purposes4 ,sec4 #cjb4 ,def9itions4 ,subtitle ,a--,e/abli%m5t & organization ( au?ority ,sec4 #caa4 ,commonweal? ,f9ancial ,responsibility & ,managem5t ,assi/ance ,au?ority4 ,sec4 #cab4 ,executive ,director & /aff4 ,sec4 #cac4 ,p[]s ( ,au?ority4 ,sec4 #cad4 ,exemption f liability = claims4 ,sec4 #cae4 ,treatm5t ( actions4 ,sec4 #caf4 ,fund+ = op]ation ( ,au?ority4 ,sec4 #cag4 ,susp5sion ( activities4 ,sec4 #cah4 ,application ( laws ( ,commonweal? to ,au?ority4 ,subtitle ,b--,responsibilities ( au?ority ,"p ,i--,control p]iod ,sec4 #cba4 ,e>ly opt-9 au?ority4 ,sec4 #cbb4 ,c]tifications by ,au?ority4 ,sec4 #cbc4 ,f9ancial plan & budget = public corporations dur+ control p]iod4 ,sec4 #cbd4 ,f9ancial plan & budget = ! ,commonweal? dur+ a control p]iod4 ,sec4 #cbe4 ,review to ensure compliance4 ,sec4 #cbf4 ,re/rictions on borr[+4 ,sec4 #cbg4 ,f9d+ ( noncompliance4 ,sec4 #cbh4 ,recomm5dations reg>d+ f9ancial /ability & managem5t responsibility4 ,"p ,,ii--,issuance ( bonds ,sec4 #cca4 ,au?ority to issue bonds4 ,sec4 #ccb4 ,pl$ge ( security int]e/ 9 rev5ues ( ,commonweal? gov]nm5t4 ,sec4 #ccc4 ,e/abli%m5t ( debt s]vice res]ve fund4 ,sec4 #ccd4 ,o!r requirem5ts = issuance ( bonds4 ,sec4 #cce4 ,no full fai? & cr$it ( ! ,unit$ ,/ates4 ,"p ,,iii--,o!r duties ( au?ority ,sec4 #cda4 ,duties ( ,au?ority dur+ ye> o!r ?an control ye>4 ,sec4 #cdb4 ,g5]al assi/ance 9 a*iev+ f9ancial /ability & managem5t effici5cy4 ,sec4 #cdc4 ,obta9+ reports4 ,sec4 #cdd4 ,reports & comm5ts4 ,subtitle ,c--,*ief ,f9ancial ,(fic] ,sec4 #cea4 ,e/abli%m5t ( (fice4 ,sec4 #ceb4 ,appo9tm5t2 removal4 ,sec4 #cec4 ,functions ( ,*ief ,f9ancial ,(fic]4 ,subtitle ,d--,effect ,sec4 #cfa4 ,effect4 ,sec4 #cfb4 ,preemption4 ,,title ,,iv--,additional reports & /udies ,sec4 #dja4 ,report on exclusion ( t]ritories f ex*anges4 ,sec4 #djb4 ,/udy ( ,pu]to ,rico public p5sion debt4 ,sec4 #djc4 ,heal? & human s]vices report4 ,,title ,v--,transition assi/ance ,sec4 #eja4 ,assi/ance by ! ,au?ority1 if necess>y1 to assi/ transition to /ability4 ,sec4 #ejb4 ,(fset = transition assi/ance & ,prev5tion & ,public ,heal? ,fund4 ,,title ,,vi--,te*nical ,assi/ance ,sec4 #fja4 ,te*nical assi/ance to improve acc\nt+1 disclosure1 & economic measurem5t practices 9 ! t]ritories4 ,i ,taxes #aja4 ,tempor>y employee payroll tax cut = resid5ts ( ,unit$ ,/ates possessions 7a7 ,9 g5]al ,not)/&+ any o!r provision ( law1 9 ! case ( a qualifi$ resid5t ( a ,unit$ ,/ates possession-- 7#a7 !re %all be all[$ a cr$it aga9/ ! tax impos$ by section #adja7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf = any taxable ye> :i* beg9s 9 ! payroll tax holiday p]iod an am\nt equal to #c4a p]c5t ( ! less] (-- 7,a7 ! self-employm5t income 7z def9$ 9 section #adjb7;b7 ( su* ,code7 d]iv$ f s\rces )9 a ,unit$ ,/ates possession 7z det]m9$ "u section #icg7;b7 ( su* ,code7 = ! taxable ye>1 or 7,b7 ! net e>n+s f self-employm5t 7z def9$ 9 section #adjb7;a7 ( su* ,code7 = ! taxable ye>1 & 7#b7 ) respect to remun]ation receiv$ dur+ ! payroll tax holiday p]iod = s]vices p]=m$ z an employee )9 a ,unit$ ,/ates possession 7except am\nts receiv$ = s]vices p]=m$ z an employee ( ! ,unit$ ,/ates or any ag5cy !re(71 ! rate ( tax "u #caja7;a7 ( su* ,code %all be #c4a p]c5t 7includ+ = purposes ( det]m9+ ! applicable p]c5tage "u sections #cbja7;a7 & #cbaa7;a77#a7 ( su* ,code74 7b7 ,special rules 7#a7 ,application ( rule = special refunds ,9 ! case ( an qualifi$ resid5t ( a ,unit$ ,/ates possession to :om subsection 7a77#b7 applies1 ! fir/ s5t5ce ( section #fdac7;c77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf %all be appli$ by sub/itut+ = exce$s ! tax ) respect to ! am\nt ( su* wages receiv$ 9 su* ye> :i* is equal to su* contribution & b5efit base ! foll[+3 exce$s ! sum (-- 7#a7 #c4a p]c5t ( ! less] (-- 7,a7 ! wages receiv$ 9 su* ye> to :i* section #aja7;a77#b7 ( ! ,pu]to ,rico ,assi/ance ,act ( #bjae applies1 or 7,b7 ! contribution & b5efit base1 plus 7#b7 #f4b p]c5t ( ! less] (-- 7,a7 ! wages receiv$ 9 su* ye> to :i* su* section does n apply1 or 7,b7 ! contribution & b5efits base r$uc$ 7b n bel[ z]o7 by ! am\nt ( wages tak5 into acc\nt "u p>agraph 7#a74 4 7#b7 ,employ] liability ,an employ] :o receives an atte/ation f an employee1 9 su* =m & mann] z direct$ by ! ,secret>y ( ! ,treasury 7or ! ,secret>y's delegate71 t su* employee is a qualifi$ resid5t ( a ,unit$ ,/ates possession %all n be liable "u section #cajb or #cbjb ( ! ,int]nal ,rev5ue ,code ( #aihf = any failure to collect taxes 9 excess ( ! rate :i* applies "u ?is section unless a reasonable p]son w\ld det]m9e t su* atte/ation is n true & correct4 7#c7 ,de m9imis s]vices ,= purposes ( subsection 7a77#b71 s]vices p]=m$ z an employee outside ( a ,unit$ ,/ates possession %all n be tak5 into acc\nt if su* s]vices are de m9imis4 7c7 ,def9itions 7#a7 ,qualifi$ resid5t ,! t]m qualifi$ resid5t means1 ) respect to any cal5d> ye>1 any individual-- 7,a7 :o 0 pres5t 9 a ,unit$ ,/ates possession = at lea/ #ahc days dur+ ! prec$+ cal5d> ye>1 & 7,b7 :o1 z ( ! fir/ day ( ! cal5d> ye>1 does n h a tax home 7det]m9$ "u ! pr9ciples ( section #iaa7;d77#c7 ( ! ,int]nal ,rev5ue ,code ( #aihf )\t reg>d to ! second s5t5ce !re(7 outside ( a ,unit$ ,/ates possession & does n h a clos] connection 7det]m9$ "u ! pr9ciples ( section #ggja7;b77#c77;,b77ii7 ( su* ,code7 to ! ,unit$ ,/ates or a =eign c\ntry ?an to a ,unit$ ,/ates possession4 ,= purposes ( subp>agraph 7,a71 ! det]m9ation ( :e!r a p]son is pres5t = any day %all be made "u ! pr9ciples ( section #ggja7;b7 ( su* ,code4 7#b7 ,unit$ ,/ates possession ,! t]m ,unit$ ,/ates possession means ,pu]to ,rico1 ,am]ican ,samoa1 ,guam1 ! ,nor!rn ,m>iana ,isl&s1 & ! ,virg9 ,isl&s4 7#c7 ,payroll tax holiday p]iod ,! t]m payroll tax holiday p]iod means ! p]iod beg9n+ aft] ,decemb] #ca1 #bjae1 & end+ be=e ,janu>y #a1 #bjba4 7d7 ,r$uc$ rate = #bjbj ,9 ! case ( ! p]iod beg9n+ aft] ,decemb] #ca1 #bjai1 & end+ be=e ,janu>y #a1 #bjba1 ?is section %all be appli$-- 7#a7 by sub/itut+ #a4ee p]c5t = #c4a p]c5t 9 subsection 7a77#a71 & 7#b7 by sub/itut+ #d4fe p]c5t = #c4a p]c5t ea* place x appe>s 9 subsections 7a77#b7 & 7b74 7e7 ,employ] notification ,! ,secret>y ( ! ,treasury %all notify employ]s ( ! payroll tax holiday p]iod 9 any mann] ! ,secret>y deems appropriate4 7f7 ,transf]s ( funds 7#a7 ,transf]s to f$]al old-age & survivors insurance tru/ fund ,!re are h]eby appropriat$ to ! ,f$]al ,old-,age & ,survivors ,tru/ ,fund & ! ,f$]al ,disability ,insurance ,tru/ ,fund e/abli%$ "u section #bja ( ! ,social ,security ,act 7#db ,u4,s4,c4 #dja7 am\nts equal to ! r$uction 9 rev5ues to ! ,treasury by reason ( ! application ( subsection 7a74 ,am\nts appropriat$ by ! prec$+ s5t5ce %all be transf]r$ f ! g5]al fund at su* times & 9 su* mann] z to replicate to ! ext5t possible ! transf]s :i* w\ld h occurr$ to su* ,tru/ ,fund _h su* am5dm5ts n be5 enact$4 7#b7 ,transf]s to social security equival5t b5efit acc\nt ,!re are h]eby appropriat$ to ! ,social ,security ,equival5t ,b5efit ,acc\nt e/abli%$ "u section #ae;,a7a7 ( ! ,railroad ,retirem5t ,act ( #aigd 7#de ,u4,s4,c4 #bcan-#a7;a77 am\nts equal to ! r$uction 9 rev5ues to ! ,treasury by reason ( ! application ( subsection 7a77#b74 ,am\nts appropriat$ by ! prec$+ s5t5ce %all be transf]r$ f ! g5]al fund at su* times & 9 su* mann] z to replicate to ! ext5t possible ! transf]s :i* w\ld h occurr$ to su* ,acc\nt _h su* am5dm5ts n be5 enact$4 7#c7 ,coord9ation ) o!r laws ,= purposes ( apply+ any provision ( law o!r ?an ! provisions ( ! ,int]nal ,rev5ue ,code ( #aihf1 ! rate ( tax 9 effect "u section #caja7;a7 ( su* ,code %all be det]m9$ )\t reg>d to ! r$uction 9 su* rate "u ?is section4 ,,ii ,public ,p5sions #bja4 ,/udy ( ,pu]to ,rico public p5sion debt 7a7 ,9 g5]al ,n lat] ?an #f mon?s aft] ! e/abli%m5t ( ! ,pu]to ,rico ,f9ancial ,responsibility & ,managem5t ,assi/ance ,au?ority "u title ,,iii ( ?is ,act1 ! ,jo9t ,bo>d = ! ,enrollm5t ( ,actu>ies e/abli%$ "u section #cjda ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #abda7 %all report to su* ,au?ority & ! ,(fice ( ,dome/ic ,f9ance ( ! ,dep>tm5t ( ! ,treasury on ! foll[+ ) respect to ! ,pu]to ,rico public p5sion plans3 7#a7 ,recomm5dations on actions t w\ld be necess>y to ensure t su* plans c be su/a9ably ma9ta9$ & fund$ by ! gov]nm5t ( ,pu]to ,rico = ! next #bj ye>s4 7#b7 ,:e!r a freeze ( future b5efit accruals "u su* plans is necess>y or advisable4 7#c7 ,! ext5t to :i* b5efit r$uctions1 su* z h be5 made 9 previ\s municipal bankruptcy proce$+s1 w\ld be necess>y or advisable to atta9 su/a9ability = su* plans or create p>ity ) paym5t r$uctions applicable to retir$ individuals :o are1 directly or indirectly1 ,pu]to ,rico bondhold]s4 ,! ,jo9t ,bo>d may1 9 its discretion1 seek assi/ance f ! ,advisory ,committee on ,actu>ial ,exam9ations ( ! ,jo9t ,bo>d1 & may exp& ! size ( su* committee z appropriate to accompli% ! requirem5ts ( ?is subsection 9 a timely mann]4 7b7 ,pu]to ,rico public p5sion plan ,= purposes ( ?is section1 ! t]m ,pu]to ,rico public p5sion plan means any ( ! foll[+ ma9ta9$ by ! gov]nm5t ( ,pu]to ,rico3 7#a7 ,! ,employees ,retirem5t ,sy/em 7,,ers74 7#b7 ,! ,tea*]s ,retirem5t ,sy/em 7,,trs74 7#c7 ,! ,judici>y ,retirem5t ,sy/em 7,,jrs74 #bjb4 ,report+ requirem5ts g5]ally applicable to ,/ate & local gov]nm5t p5sion plans 7a7 ,9 g5]al ,! plan sponsor ( a ,/ate or local gov]nm5t employee p5sion b5efit plan %all file ) ! ,secret>y ( ! ,treasury1 9 su* =m & mann] z %all be prescrib$ by su* ,secret>y1 a report = ea* plan ye> beg9n+ on or aft] ,janu>y #a1 #bjag1 sett+ =? ! foll[+ in=mation ) respect to ! plan1 z det]m9$ by ! plan sponsor z ( ! end ( su* plan ye>3 7#a7 ,a s*$ule ( fund+ /atus1 :i* %all include a /atem5t z to ! curr5t liability ( ! plan1 ! am\nt ( plan assets available to meet t liability1 ! am\nt ( ! net unfund$ liability 7if any71 & ! fund+ p]c5tage ( ! plan4 7#b7 ,a s*$ule ( contributions by ! plan sponsor & ea* contribut+ employ] = ! plan ye>1 indicat+ :i* are or are n tak5 into acc\nt "u p>agraph 7#a74 7#c7 ,alt]native projections :i* %all be specifi$ 9 regulations ( ! ,secret>y = ea* ( ! next #bj plan ye>s foll[+ ! plan ye> relat+ to ! am\nt ( annual contributions1 ! fair m>ket value ( plan assets1 curr5t liability1 ! fund+ p]c5tage1 & su* o!r matt]s z ! ,secret>y may specify 9 su* regulations1 toge!r ) a /atem5t ( ! assumptions & me?ods us$ 9 connection ) su* projections1 includ+ assumptions relat$ to fund+ policy1 plan *anges1 future work=ce projections1 future inve/m5t returns1 & su* o!r matt]s z ! ,secret>y may specify 9 su* regulations4 ,! ,secret>y %all specify 9 su* regulations ! projection assumptions & me?ods to be us$ z necess>y to a*ieve comp>ability across plans4 7#d7 ,a /atem5t ( ! actu>ial assumptions us$ = ! plan ye>1 includ+ ! rate ( return on inve/m5t ( plan assets & assumptions z to su* o!r matt]s z ! ,secret>y may prescribe by regulation4 7#e7 ,a /atem5t ( ! numb] ( p>ticipants :o are ea* ( ! foll[+-- 7,a7 ^? :o are retir$ or sep>at$ f s]vice & are receiv+ b5efits2 7,b7 ^? :o are retir$ or sep>at$ & are entitl$ to future b5efits2 & 7,c7 ^? :o are active "u ! plan4 7#f7 ,a /atem5t ( ! plan's inve/m5t returns1 includ+ ! rate ( return1 = ! plan ye> & ! #e prec$+ plan ye>s4 7#g7 ,a /atem5t ( ! degree to :i*1 & mann] 9 :i*1 ! plan sponsor expects to elim9ate any unfund$ curr5t liability t may exi/ = ! plan ye> & ! ext5t to :i* ! plan sponsor has foll[$ ! plan's fund+ policy = ea* ( ! prec$+ #e plan ye>s4 ,! ,secret>y %all prescribe by regulation ! specific crit]ia to be us$ = meet+ ! requirem5ts ( ?is p>agraph4 7#h7 ,a /atem5t ( ! am\nt ( p5sion obligation bonds out/&+4 7b7 ,tim+ ( report ,! plan sponsor ( a ,/ate or local gov]nm5t employee p5sion b5efit plan %all make ! fil+ requir$ "u subsection 7a7 = ea* plan ye> n lat] ?an #baj days aft] ! end ( su* plan ye> 7or )9 su* "t z may be requir$ by regulations prescrib$ by ! ,secret>y 9 ord] to r$uce duplicative fil+74 7c7 ,additional report+ requirem5ts 7#a7 ,supplem5t>y reports ,9 any case 9 :i*1 9 det]m9+ ! in=mation fil$ 9 ! annual report = a plan ye> "u subsection 7a7-- 7,a7 ! value ( plan assets is det]m9$ us+ a /&>d o!r ?an fair m>ket value1 or 7,b7 ! int]e/ rate or rates us$ to det]m9e ! value ( liabilities or z ! disc\nt value = liabilities are n ! int]e/ rates describ$ 9 p>agraph 7#c71 ! plan sponsor %all include 9 ! annual report fil$ = su* plan ye> pursuant to subsection 7a7 ! supplem5t>y report = su* plan ye> describ$ 9 p>agraph 7#b74 7#b7 ,use ( prescrib$ valuation me?od & int]e/ rates ,a supplem5t>y report fil$ = a plan ye> pursuant to ?is subsection %all include ! in=mation specifi$ z requir$ 9 ! annual report "u p>agraphs 7#a71 7#c71 7#f71 & 7#g7 ( subsection 7a71 det]m9$ z ( ! end ( su* plan ye> by valu+ plan assets at fair m>ket value & by us+ ! int]e/ rates describ$ 9 p>agraph 7#c7 to value liabilities & z ! disc\nt value = liabilities4 7#c7 ,int]e/ rates bas$ on ,u4,s4 ,treasury obligation yield curve rate 7,a7 ,9 g5]al ,! int]e/ rates describ$ 9 ?is p>agraph are-- 7i7 9 ! case ( b5efits reasonably det]m9$ to be payable dur+ ! #e-ye> p]iod beg9n+ on ! fir/ day ( ! plan ye>1 ! fir/ segm5t rate ) respect to ! applicable mon?1 7ii7 9 ! case ( b5efits reasonably det]m9$ to be payable dur+ ! #ae-ye> p]iod beg9n+ at ! end ( ! p]iod describ$ 9 clause 7i71 ! second segm5t rate ) respect to ! applicable mon?1 & 7iii7 9 ! case ( b5efits reasonably det]m9$ to be payable aft] ! p]iod describ$ 9 clause 7ii71 ! ?ird segm5t rate ) respect to ! applicable mon?4 7,b7 ,segm5t rates ,= purposes ( ?is p>agraph-- 7i7 ,fir/ segm5t rate ,! t]m fir/ segm5t rate means1 ) respect to any mon?1 ! s+le rate ( int]e/ :i* %all be det]m9$ by ! ,secret>y = su* mon? on ! basis ( ! ,u4,s4 ,treasury obligation yield curve = su* mon?1 tak+ into acc\nt only t portion ( su* yield curve :i* is bas$ on obligations matur+ dur+ ! #e-ye> p]iod comm5c+ ) su* mon?4 7ii7 ,second segm5t rate ,! t]m second segm5t rate means1 ) respect to any mon?1 ! s+le rate ( int]e/ :i* %all be det]m9$ by ! ,secret>y = su* mon? on ! basis ( ! ,u4,s4 ,treasury obligation yield curve = su* mon?1 tak+ into acc\nt only t portion ( su* yield curve :i* is bas$ on obligations matur+ dur+ ! #ae-ye> p]iod beg9n+ at ! end ( ! p]iod describ$ 9 clause 7i74 7iii7 ,?ird segm5t rate ,! t]m ?ird segm5t rate means1 ) respect to any mon?1 ! s+le rate ( int]e/ :i* %all be det]m9$ by ! ,secret>y = su* mon? on ! basis ( ! ,u4,s4 ,treasury obligation yield curve = su* mon?1 tak+ into acc\nt only t portion ( su* yield curve :i* is bas$ on obligations matur+ dur+ p]iods beg9n+ aft] ! p]iod describ$ 9 clause 7ii74 7,c7 ,u4,s4 ,treasury obligation yield curve ,= purposes ( ?is p>agraph1 ! t]m ,u4,s4 ,treasury obligation yield curve means1 ) respect to any mon?1 a yield curve :i* %all be prescrib$ by ! ,secret>y = su* mon? & :i* reflects ! av]age1 = ! #bd-mon? p]iod end+ ) ! mon? prec$+ su* mon?1 ( mon?ly yields on int]e/-be>+ obligations ( ! ,unit$ ,/ates4 7d7 ,def9itions ,= purposes ( ?is section-- 7#a7 ,/ate or local gov]nm5t employee p5sion b5efit plan ,except z provid$ 9 section #bjc1 ! t]ms ,/ate or local gov]nm5t employee p5sion b5efit plan & plan mean any plan1 fund1 or program1 o!r ?an a def9$ contribution plan 7)9 ! mean+ ( section #dad7;i7 ( ! ,int]nal ,rev5ue ,code ( #aihf71 :i* 0 h]et(ore or is h]eaft] e/abli%$ or ma9ta9$1 9 :ole or 9 "p1 by a ,/ate1 a political subdivision ( a ,/ate1 or any ag5cy or in/rum5tality ( a ,/ate or political subdivision ( a ,/ate1 to ! ext5t t by its express t]ms or z a result ( surr\nd+ circum/ances su* plan1 fund1 or program-- 7,a7 provides retirem5t income to employees1 or 7,b7 results 9 a def]ral ( income by employees = p]iods ext5d+ to ! t]m9ation ( cov]$ employm5t or beyond1 reg>dless ( ! me?od ( calculat+ ! contributions made to ! plan1 ! me?od ( calculat+ ! b5efits "u ! plan1 or ! me?od ( di/ribut+ b5efits f ! plan4 7#b7 ,fund+ p]c5tage ,! t]m fund+ p]c5tage = a plan ye> means ! ratio 7express$ z a p]c5tage7 :i*-- 7,a7 ! value ( plan assets z ( ! end ( ! plan ye>1 be>s to 7,b7 ! curr5t liability ( ! plan = ! plan ye>4 7#c7 ,curr5t liability ,! t]m curr5t liability ( a plan = a plan ye> means ! pres5t value ( all b5efits accru$ or e>n$ "u ! plan z ( ! end ( ! plan ye>4 7#d7 ,plan sponsor ,! t]m plan sponsor means1 9 connection ) a ,/ate or local gov]nm5t employee p5sion b5efit plan1 ! ,/ate1 political subdivision ( a ,/ate1 or ag5cy or in/rum5tality ( a ,/ate or a political subdivision ( a ,/ate :i* e/abli%es or ma9ta9s ! plan4 7#e7 ,contribut+ employ] ,! t]m contribut+ employ] means any employ] t contributes to or p>ticipates 9 a plan on behalf ( its employees 7includ+ a plan sponsor t contributes to ! plan74 7#f7 ,p>ticipant 7,a7 ,9 g5]al ,! t]m p>ticipant means1 9 connection ) a ,/ate or local gov]nm5t employee p5sion b5efit plan1 an individual-- 7i7 :o is an employee or =m] employee ( a ,/ate1 political subdivision ( a ,/ate1 or ag5cy or in/rum5tality ( a ,/ate or a political subdivision ( a ,/ate :i* is ! plan sponsor ( su* plan1 & 7ii7 :o is or may become eligible to receive a b5efit ( any type f su* plan or ^: b5efici>ies may be eligible to receive any su* b5efit4 7,b7 ,b5efici>y ,! t]m b5efici>y means a p]son designat$ by a p>ticipant1 or by ! t]ms ( ! plan1 :o is or may become entitl$ to a b5efit !reund]4 7#g7 ,plan ye> ,! t]m plan ye> means1 9 connection ) a plan1 ! cal5d> or fiscal ye> on :i* ! records ( ! plan are kept4 7#h7 ,/ate ,! t]m ,/ate includes any ,/ate ( ! ,unit$ ,/ates1 ! ,di/rict ( ,columbia1 & any possession or t]ritory ( ! ,unit$ ,/ates1 includ+ a possession describ$ 9 section #ggja7;d7 ( ! ,int]nal ,rev5ue ,code ( #aihf4 7#i7 ,fair m>ket value ,! t]m fair m>ket value has ! mean+ giv5 su* t]m "u section #dcj7;g77#c77;,a7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7)\t reg>d to section #dcj7;g77#c77;,b7 !re(74 7#aj7 ,o!r t]ms ,any o!r t]m us$ 9 ?is section :i* is also us$ 9 ! ,int]nal ,rev5ue ,code ( #aihf %all h ! same mean+ z :5 us$ 9 su* ,code4 7e7 ,model report+ /atem5t ,! ,secret>y %all develop model report+ /atem5ts = purposes ( subsections 7a7 & 7c74 ,plan sponsors ( ,/ate or local gov]nm5t employee p5sion plans may elect1 9 su* =m & mann] z %all be prescrib$ by ! ,secret>y1 to utilize ! applicable model report+ /atem5t = purposes ( comply+ ) requirem5ts ( su* subsections4 7f7 ,transp>5cy ( in=mation fil$ ,! ,secret>y %all create & ma9ta9 a public website1 ) se>*able capabilities1 = purposes ( po/+ ! in=mation receiv$ by ! ,secret>y pursuant to subsections 7a7 & 7c74 ,any su* in=mation receiv$ by ! ,secret>y 7includ+ any updates to su* in=mation receiv$ by ! ,secret>y7 %all be po/$ on ! website n lat] ?an #fj days aft] receipt & %all n be treat$ z return in=mation = purposes ( ! ,int]nal ,rev5ue ,code ( #aihf4 #bjc4 ,annuity accumulation retirem5t plans ( employees ( ,/ate & local gov]nm5ts 7a7 ,9 g5]al ,"p ,i ( sub*apt] ,d ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] subp>t ,e ! foll[+ new subp>t3 ,f ,annuity accumulation retirem5t plans = ,/ate & local gov]nm5t employees ,sec4 #dbj;,a4 ,annuity accumulation retirem5t plans4 #dbj;,a4 ,annuity accumulation retirem5t plans 7a7 ,annuity accumulation retirem5t plans ,= purposes ( ?is subp>t-- 7#a7 ,9 g5]al ,! t]m annuity accumulation retirem5t plan means a ,/ate or local gov]nm5tal retirem5t plan-- 7,a7 :i* provides = ! pur*ase1 n less frequ5tly ?an annually1 ( a qualifi$ individual def]r$ fix$ income annuity contract = ea* p>ticipant :i* provides b5efits bas$ solely on ! contributions by an employ] to an annuity provid] & ! actu>ial assumptions specifi$ 9 ! annuity contract1 & 7,b7 :i* provides t-- 7i7 no contributions may be made "u ! plan o!r ?an contributions describ$ 9 subsection 7c71 7ii7 contributions pursuant to ! plan on behalf ( any eligible employee = any plan ye>1 :e!r made annually or m frequ5tly1 are requir$ to be paid n lat] ?an #ij days aft] ! close ( ! plan ye> to an annuity provid] to pur*ase a qualifi$ individual def]r$ fix$ income annuity contract = ! employee1 & 7iii7 no b5efits are provid$ by ! employ] "u ! plan o!r ?an ! pur*ase ( qualifi$ individual def]r$ fix$ income annuity contracts = eligible employees4 ,subject to ! provisions ( subsection 7d77#c71 no?+ 9 subp>agraph 7,b77iii7 %all prohibit an employ] f e/abli%+ or ma9ta9+ a def9$ contribution plan or def9$ b5efit plan or provid+ any =m ( employee welf>e b5efit sep>ately f ! plan4 7#b7 ,plan /ructure ,a plan w n be treat$ z an annuity accumulation retirem5t plan unless-- 7,a7 except z provid$ 9 subsection 7e77#a71 b5efits "u ! plan are limit$ to a mon?ly paym5t = ! life ( ! p>ticipant1 comm5c+ at ! applicable age "u subsection 7b77#a77;,b71 z provid$ "u ! qualifi$ individual def]r$ fix$ income annuity contract pur*as$ ) ! employ] contributions describ$ 9 subsection 7c7 & issu$ to ! p>ticipant1 & 7,b7 ! plan does n accumulate assets 9 tru/ or o!rwise1 & ! employ] has no own]%ip int]e/ 9 any qualifi$ individual def]r$ fix$ income annuity contract issu$ to a p>ticipant4 7#c7 ,requirem5ts = annuity contract pur*as+ process 7,a7 ,9 g5]al ,a plan w n be treat$ z an annuity accumulation retirem5t plan unless ! plan provides t individual def]r$ fix$ income annuity contracts w be pur*as$ ?r\gh a process by :i*1 ) respect to ea* pur*ase "u p>agraph 7#a77;,a71 ! plan adm9i/rator-- 7i7 obta9s competitive bids1 n less frequ5tly ?an e #e ye>s1 pursuant to a =mal1 public procurem5t process au?oriz$ "u ,/ate law :i* requires in/itutional pric+ on a gr\p contract basis f multiple annuity provid]s v]ifi$ by ! applicable ,/ate insurance regulator z prop]ly lic5s$ to meet ! specifications 9 ! procurem5t reque/1 & 7ii7 selects #a or m annuity provid]s pursuant to a process t includes an objective1 ?or\gh1 & analytical se>* to id5tify & select provid]s & ! evaluation ( an annuity provid]'s claims pay+ ability & cr$itwor?9ess4 7,b7 ,prohibition on provid+ b5efit 9 ex*ange = selection ,an annuity provid] %all n be treat$ z meet+ ! competitive bid requirem5ts ( subp>agraph 7,a77i7 if su* provid]1 or any relat$ p>ty to 7)9 ! mean+ ( su* t]m z appli$ by ! ,/ate gu>anty association7 or ag5t ( su* provid]1 on _! own or on ano!r's behalf1 provides any?+ ( value to any employee ( a ,/ate or local gov]nm5t entity1 or ag5cy or in/rum5tality !re(1 or to a plan adm9i/rator1 9 connection ) ! bidd+ process or ! annuity pur*ase process describ$ 9 subp>agraph 7,a74 7,c7 ,compliance safe h>bor ,a plan %all be deem$ to meet ! requirem5ts ( subp>agraph 7,a7 if ! plan adm9i/rator obta9s a det]m9ation 9 writ+ f ! ,(fice ( ,dome/ic ,f9ance1 ,dep>tm5t ( ! ,treasury1 t su* plan meets su* requirem5ts4 ,au?ority to issue su* a det]m9ation %all n be delegat$ to any entity outside ( ! ,(fice ( ,dome/ic ,f9ance4 7#d7 ,g5]al exemption f p5sion plan requirem5ts ,not)/&+ any o!r provision ( ?is sub*apt]-- 7,a7 except z provid$ 9 ?is section1 no requirem5t ( ?is sub*apt] o!rwise applicable to a ,/ate or local gov]nm5tal retirem5t plan %all apply to an annuity accumulation retirem5t plan1 & 7,b7 = purposes ( ?is title o!r ?an any su* requirem5ts1 an annuity accumulation retirem5t plan %all be treat$ z a def9$ b5efit plan :i* meets ! requirem5ts ( section #dja7;a74 7b7 ,qualifi$ individual def]r$ fix$ income annuity contract ,= purposes ( ?is subp>t1 ! t]m qualifi$ individual def]r$ fix$ income annuity contract means1 ) respect to an employee = any plan ye>1 an annuity contract issu$ by an annuity provid]-- 7#a7 :i* is-- 7,a7 an individual annuity contract1 or 7,b7 an individual c]tificate ( b5efits issu$ to ! employee "u a gr\p annuity contract1 7#b7 except z provid$ 9 subsection 7e71 "u ! t]ms ( :i*-- 7,a7 ! mon?ly annuity paym5ts dur+ ! p]iod describ$ 9 subp>agraph 7,b7 are 9 equal in/allm5ts & are fix$ at ! "t ( pur*ase1 & 7,b7 ! entire int]e/ ( ! employee 9 ! contract w be di/ribut$ 9 ! =m ( mon?ly annuity paym5ts "u a s+le life annuity1 beg9n+ on ! lat] (-- 7i7 ! date ! employee atta9s age-- 7,i7 #ej 7or a lat] date specifi$ by ! ,/ate71 9 ! case ( a public safety employee1 & 7,,ii7 #fb 7or a lat] date specifi$ by ! ,/ate71 9 ! case ( any o!r employee1 or 7ii7 9 ! case ( a contract pur*as$ aft] ! date ! employee atta9s su* age1 ! #a/ day ( ! #a/ cal5d> ye> beg9n+ aft] ! cal5d> ye> 9 :i* su* contract 0 pur*as$1 7#c7 ! pur*ase price ( :i* is equal to ! contributions describ$ 9 subsection 7c7 ) respect to ! employee = ! plan ye> 9 :i* x is pur*as$1 7#d7 "u :i* ! employee's rights are non=feitable1 7#e7 "u :i* no loan may be made ) respect to any portion ( any int]e/ 9 ! contract1 & 7#f7 except z provid$ 9 subsection 7e77#b71 no portion ( any int]e/ 9 ! contract may be assign$1 ali5at$1 or pl$g$ z collat]al4 ,9 ! case ( a c]tificate describ$ 9 p>agraph 7#a77;,b71 any ref]5ce 9 ?is section 7o!r ?an p>agraph 7#a77 to an annuity contract %all be treat$ z a ref]5ce to ! portion ( ! gr\p annuity contract to :i* su* c]tificate relates4 7c7 ,contribution requirem5ts & limitations ,= purposes ( subsection 7a77#a77;,b7-- 7#a7 ,9 g5]al ,! plan mu/ provide t ! only contributions :i* may be made pursuant to ! plan = any plan ye> are nonelective contributions 7)9 ! mean+ ( section #dja7k77#aa77;,b77ii77 made by ! employ] = ! pur*ase ( qualifi$ individual def]r$ fix$ income annuity contracts :i* are-- 7,a7 made on behalf ( ea* eligible employee = ! plan ye>1 & 7,b7 equal to a p]c5tage ( ! employee's comp5sation :i* 7except z provid$ 9 ?is p>agraph7 is det]m9$ n lat] ?an ! />t ( ! plan ye>4 ,an employ] %all n be treat$ z fail+ to meet ! requirem5ts ( ?is p>agraph m]ely because ! plan all[s ! employ] to elect to r$uce ! p]c5tage "u subp>agraph 7,b71 or n to make any contributions pursuant to ! plan1 = any p]iod = all employees1 & ! employ] s elects n lat] ?an ! />t ( ! plan ye>4 7#b7 ,limits bas$ on comp5sation 7,a7 ,limitation 7i7 ,9 g5]al ,! comp5sation tak5 into acc\nt "u p>agraph 7#a77;,b7 ) respect to an employee = any ye> %all n exce$ ! limitation 9 effect = su* ye> "u section #dja7;a77#ag74 7ii7 ,comp5sation ,= purposes ( ?is subp>agraph1 ! t]m comp5sation means includible comp5sation z def9$ 9 section #djc7;b77#c71 includ+ any am\nt paid by an employ] on behalf ( ! employee = a qualifi$ def]r$ fix$ income annuity contract4 7,b7 ,p]c5tage limitation 7i7 ,9 g5]al ,! p]c5tage "u p>agraph 7#a77;,b7 = any p]iod %all n exce$-- 7,i7 #cj p]c5t 9 ! case ( a public safety employee1 or 7,,ii7 #bj p]c5t 9 ! case ( any o!r employee4 7ii7 ,election ( high] p]c5tage = c]ta9 employees ,a plan may elect to provide a high] p]c5tage "u p>agraph 7#a77;,b7 ?an t specifi$ "u clause 7i7-- 7,i7 9 ! case ( any ( ! fir/ #aj plan ye>s aft] adoption ( ! plan1 = all employees :o h atta9$ age #dj be=e ! beg9n+ ( su* plan ye>1 & 7,,ii7 9 ! case ( any subsequ5t plan ye>1 = all employees :o h atta9$ age #ej 7age #dj 9 ! case ( a public safety employee7 be=e ! beg9n+ ( su* plan ye>1 except t 9 no case may su* p]c5tage exce$ #be p]c5t 7#ce p]c5t 9 ! case ( a public safety employee74 7,c7 ,aggregation rule ,all plans ( an employ] treat$ z a s+le plan = purposes ( section #dae %all be treat$ z a s+le plan = purposes ( ?is p>agraph4 7d7 ,tax treatm5t ( annuity accumulation retirem5t plans 7#a7 ,taxation ( eligible employee ,! am\nt actually paid to a di/ributee "u a qualifi$ individual def]r$ fix$ income annuity contract %all be taxable to ! di/ributee "u section #gb4 7#b7 ,treatm5t ( employ] contributions ,contributions made by an employ] = ! pur*ase ( a qualifi$ individual def]r$ fix$ income annuity contract "u an annuity accumulation retirem5t plan %all be exclud$ f ! gross income ( ! employee4 7#c7 ,inclusion 9 income ( excess contributions or contributions = p>ticipants 9 ano!r def9$ b5efit plan ( an employ] 7,a7 ,excess contributions ,except z provid$ 9 subp>agraph 7,b71 if-- 7i7 contributions are made = any plan ye> by an employ] on behalf ( an employee 9 excess ( ! limit det]m9$ aft] application ( subsection 7c77#b71 ! employee %all include 9 gross income an am\nt equal to su* excess1 or 7ii7 an employee = :om su* contributions are made = any plan ye> accrues b5efits 7= any p]iod ( s]vice = :i* su* contributions 7 made7 "u any o!r def9$ b5efit plan ( ! employ] :i* is n an annuity accumulation retirem5t plan1 ! employee %all include 9 gross income an am\nt equal to su* contributions4 7,b7 ,exception = premiums refund$ ,subp>agraph 7,a7 %all n apply ) respect to contributions on behalf ( an employee = any plan ye> if1 n lat] ?an #f mon?s aft] ! la/ day ( ! plan ye>1 ! contributions describ$ 9 subp>agraph 7,a7 us$ to pur*ase a qualifi$ individual def]r$ fix$ income annuity contract = ! employee are refund$ to ! employ]4 7,c7 ,taxable ye> ( inclusion ,any am\nt "u subp>agraph 7,a7 %all be includible 9 gross income ( ! employee = ! taxable ye> :i* includes ! date :i* is #f mon?s aft] ! la/ day ( ! plan ye>4 7,d7 ,inve/m5t 9 ! contract ,any am\nt includ$ 9 gross income %all n be treat$ z inve/m5t 9 ! contract = purposes ( section #gb4 7e7 ,special rules 7#a7 ,employ] option to provide alt]native b5efit =ms ,at ! option ( an employ]1 a qualifi$ individual def]r$ fix$ income annuity contract may provide #a or m ( ! foll[+ optional b5efits3 7,a7 ,di/ribution "u a jo9t & survivor annuity4 7,b7 ,an annual adju/m5t 9 ! am\nt ( b5efit paym5ts bas$ on a fix$ p]c5tage n to exce$ #c p]c5t4 7,c7 ,a #aj-ye> p]iod c]ta9 & life paym5t option4 ,if an employ] provides = #a or m ( su* optional b5efits1 ! contract %all provide t an employee may elect any ( ! options provid$ at ! "t paym5ts comm5ce "u ! contract4 7#b7 ,c]ta9 judgm5ts & settlem5ts ,p>agraphs 7#b77;,b7 & 7#e7 ( subsection 7b7 %all n apply to any (fset ( an employee's b5efits payable "u an annuity contract-- 7,a7 pursuant to-- 7i7 ! en=cem5t ( a levy "u section #fcca or ! collection by ! ,unit$ ,/ates ( a judgm5t result+ f an unpaid tax assessm5t1 or 7ii7 ! en=cem5t ( a f9e impos$ z "p ( a crim9al s5t5ce "u sub*apt] ,c ( *apt] #bbg ( title #ah1 ,unit$ ,/ates ,code1 or an ord] ( re/itution made pursuant to su* title1 or 7,b7 to ! ext5t requir$ "u any ,/ate tax1 crim9al1 or dome/ic relations law4 7f7 ,def9itions ,= purposes ( ?is section-- 7#a7 ,/ate or local gov]nm5tal retirem5t plan ,! t]m ,/ate or local gov]nm5tal retirem5t plan means a gov]nm5tal plan provid+ = ! def]ral ( comp5sation :i* is e/abli%$ & ma9ta9$ = its employees by a ,/ate1 a political subdivision ( a ,/ate1 or an ag5cy or in/rum5tality ( any su* entity4 ,! t]m ,/ate includes any possession or t]ritory ( ! ,unit$ ,/ates1 includ+ a possession describ$ 9 section #ggja7;d74 7#b7 ,g5]al def9itions 7,a7 ,eligible employee ,! t]m eligible employee means1 ) respect to any ,/ate or local gov]nm5tal retirem5t plan1 any (fic] or employee 7o!r ?an a contractor7 eligible to p>ticipate 9 ! plan4 7,b7 ,annuity provid] ,! t]m annuity provid] means any company :i* is lic5s$ to d bus9ess z a life insurance company "u ! laws ( ! ,/ate 9 :i* a qualifi$ individual def]r$ fix$ income annuity contract to :i* ?is sub*apt] applies is to be issu$4 7,c7 ,public safety employee ,! t]m public safety employee means any employee ( a ,/ate or political subdivision ( a ,/ate :o provides police protection1 firefight+ s]vices1 or em]g5cy m$ical s]vices = any area )9 ! jurisdiction ( su* ,/ate or political subdivision4 4 7b7 ,,fica exemption ,p>agraph 7#e7 ( section #caba7;a7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ or at ! end ( subp>agraph 7,h71 by /rik+ ! semicolon at ! end ( subp>agraph 7,i7 & ins]t+ 1 or1 & by add+ at ! end ! foll[+ new subp>agraph3 7,j7 "u an annuity accumulation retirem5t plan = ! pur*ase ( annuity contracts "u section #dbj;,a2 4 7c7 ,inclusion ( am\nt = ! pur*ase ( annuity contracts on ,w-#b ,subsection 7a7 ( section #fjea ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by /rik+ & at ! end ( p>agraph 7#ac71 by /rik+ ! p]iod at ! end ( p>agraph 7#ad77;,b7 & ins]t+ 1 &1 & by ins]t+ aft] p>agraph 7#ad7 ! foll[+ new p>agraph3 7#ae7 ! total am\nt contribut$ "u an annuity accumulation retirem5t plan = ! pur*ase ( annuity contracts "u section #dbj;,a4 4 7d7 ,cl]ical am5dm5t ,! table ( subp>ts = "p ,i ( sub*apt] ,d ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] ! item relat+ to subp>t ,e ! foll[+ new item3 ,,subp>t ,f--,annuity accumulation retirem5t plans = ,/ate & local gov]nm5t employees 4 7e7 ,effective date ,except z provid$ 9 subsection 7b71 ! am5dm5ts made by ?is section %all apply to ye>s beg9n+ aft] ,decemb] #ca1 #bjae4 ,,iii ,pu]to ,rico ,f9ancial ,responsibility & ,managem5t ,assi/ance ,au?ority #cja4 ,purposes 7a7 ,purposes ,! purposes ( ?is title are-- 7#a7 to elim9ate budget deficits & ca% %ortages ( ,pu]to ,rico ?r\gh vision>y f9ancial plann+1 s\nd budget+1 accurate rev5ue =eca/s1 & c>eful sp5d+2 7#b7 to ensure ! mo/ effici5t & effective deliv]y ( s]vices1 includ+ public safety s]vices1 by ! ,commonweal? gov]nm5t dur+ a p]iod ( fiscal em]g5cy2 7#c7 to conduct necess>y inve/igations & /udies to det]m9e ! fiscal /atus & op]ational effici5cy ( ! ,commonweal? gov]nm5t2 7#d7 to assi/ ! ,commonweal? gov]nm5t 9-- 7,a7 re/ructur+ ! organization & work=ce ( ! ,commonweal? gov]nm5t to ensure t ! resid5ts ( ,pu]to ,rico are s]v$ by a gov]nm5t t is effici5t & effective2 7,b7 ensur+ ! appropriate & effici5t deliv]y ( s]vices2 & 7,c7 mod]niz+ ! budget1 acc\nt+1 p]sonnel1 procurem5t1 in=mation te*nology1 & managem5t sy/ems to ensure ! maximum f9ancial & p]=mance acc\ntability ( ! ,commonweal? gov]nm5t & (fic]s & employees ( ! ,commonweal? gov]nm5t2 7#e7 to enhance ! access ( ! ,commonweal? gov]nm5t to ! capital m>kets2 7#f7 to ensure ! cont9u$ ord]ly paym5t ( ! debt s]vice obligations ( ! ,commonweal? gov]nm5t2 7#g7 to ensure ! long-t]m f9ancial1 fiscal1 & economic vitality & op]ational effici5cy ( ,pu]to ,rico2 & 7#h7 to provide = ! review ( ! f9ancial impact ( activities ( ! ,commonweal? gov]nm5t be=e ! activities are implem5t$ or submitt$ = congressional review4 #cjb4 ,def9itions ,9 ?is title3 7#a7 ,au?ority ,! t]m ,au?ority means ! ,pu]to ,rico ,f9ancial ,responsibility & ,managem5t ,assi/ance ,au?ority e/abli%$ by section #caa7;a74 7#b7 ,*ief f9ancial (fic] ,! t]m ,*ief ,f9ancial ,(fic] means ! ,*ief ,f9ancial ,(fic] ( ,pu]to ,rico appo9t$ "u section #ceb7;a74 7#c7 ,commonweal? ,! t]m ,commonweal? means ! ,commonweal? ( ,pu]to ,rico4 7#d7 ,commonweal? gov]nm5t 7,a7 ,9 g5]al ,! t]m ,commonweal? gov]nm5t means-- 7i7 ! gov]nm5t ( ! ,commonweal? 7includ+ any dep>tm5t1 ag5cy1 or in/rum5tality ( ! gov]nm5t ( ! ,commonweal?72 7ii7 an indep5d5t ag5cy ( ! ,commonweal? or any o!r ag5cy1 bo>d1 or commission e/abli%$ by ! ,gov]nor or ! ,legislative ,assembly2 7iii7 ! c\rts ( ! ,commonweal?2 7iv7 ! ,legislative ,assembly2 & 7v7 any o!r ag5cy1 public au?ority1 p5sion fund1 or public b5efit corporation e/abli%$ by ! ,commonweal? t has ! au?ority to receive am\nts directly or indirectly f ! ,commonweal? 7o!r ?an am\nts receiv$ f ! sale ( goods1 ! provision ( s]vices1 or ! loan+ ( funds to ! ,commonweal?74 7,b7 ,exclusion ,! t]m ,commonweal? gov]nm5t does n include ! ,au?ority4 7#e7 ,control p]iod ,! t]m control p]iod means-- 7,a7 9 ! case ( a public corporation1 a control p]iod = ! public corporation initiat$ "u section #cbb7;a77#b72 & 7,b7 9 ! case ( ! ,commonweal? gov]nm5t1 a control p]iod = ! ,commonweal? gov]nm5t initiat$ "u section #cbb7;b77#b74 7#f7 ,control ye> ,! t]m control ye> means any fiscal ye> = :i* a f9ancial plan & budget = a public corporation or ! ,commonweal? gov]nm5t approv$ by ! ,au?ority "u section #cbc or #cbd is 9 effect4 7#g7 ,em]g5cy manag] ,! t]m em]g5cy manag] means an em]g5cy manag] = a public corporation appo9t$ "u section #cbb7;a77#e77;,a74 7#h7 ,f9ancial plan & budget ,! t]m f9ancial plan & budget means-- 7,a7 9 ! case ( a public corporation1 a f9ancial plan & budget develop$ = ! public corporation "u section #cbc2 & 7,b7 9 ! case ( ! ,commonweal? gov]nm5t-- 7i7 a f9ancial plan & budget = ! ,commonweal? gov]nm5t develop$ "u section #cbd2 & 7ii7 a budget ( ! ,commonweal? gov]nm5t = any fiscal ye> t is subject to a f9ancial plan & budget describ$ 9 clause 7i74 7#i7 ,gov]nor ,! t]m ,gov]nor means ! ,gov]nor ( ! ,commonweal?4 7#aj7 ,legislative ,assembly ,! t]m ,legislative ,assembly means ! ,legislative ,assembly ( ,pu]to ,rico4 7#aa7 ,public corporation 7,a7 ,9 g5]al ,! t]m public corporation means an entity creat$ by ,commonweal? law z a public corporation4 7,b7 ,inclusions ,! t]m public corporation includes-- 7i7 ! ,aqu$uct & ,sew] ,au?ority2 7ii7 ! ,conv5tion ,c5t] ,di/rict ,au?ority2 7iii7 ! ,electric ,p[] ,au?ority2 7iv7 ! ,highway & ,transportation ,au?ority2 7v7 ! ,h\s+ ,f9ance ,au?ority2 7vi7 ! ,indu/rial ,developm5t ,company2 7vii7 ! ,infra/ructure ,f9anc+ ,au?ority2 7viii7 ! ,port ( ! ,am]icas ,au?ority2 7ix7 ! ,ports ,au?ority2 7x7 ! ,public ,build+s ,au?ority2 7xi7 ! ,public ,f9ance ,corporation2 7xii7 ! ,sales ,taxes ,f9anc+ ,corporation2 & 7xiii7 ! ,univ]sity ( ,pu]to ,rico4 7#ab7 ,secret>y ,! t]m ,secret>y means ! ,secret>y ( ! ,treasury4 ,a ,e/abli%m5t & organization ( au?ority #caa4 ,commonweal? ,f9ancial ,responsibility & ,managem5t ,assi/ance ,au?ority 7a7 ,e/abli%m5t ,pursuant to article ,,iv1 section #c1 clause #b ( ! ,con/itution ( ! ,unit$ ,/ates1 ! ,pu]to ,rico ,f9ancial ,responsibility & ,managem5t ,assi/ance ,au?ority is e/abli%$ 9 accordance ) ?is section4 7b7 ,memb]%ip 7#a7 ,9 g5]al ,! ,au?ority %all consi/ (-- 7,a7 ! ,secret>y2 & 7,b7 #e additional memb]s :o-- 7i7 meet ! qualifications describ$ 9 subsection 7c72 & 7ii7 are appo9t$ by ! ,presid5t1 9 consultation ) ! committees & individuals describ$ 9 p>agraph 7#c74 7#b7 ,au?oriz$ actions ,beg9n+ on ! date on :i* ! ,presid5t has appo9t$ at lea/ #c memb]s to ! ,au?ority1 ! ,au?ority may take any action au?oriz$ by ?is title4 7#c7 ,consultation requir$ ,! ,presid5t %all appo9t ! memb]s ( ! ,au?ority aft] consultation )-- 7,a7 ! ,committee on ,en]gy & ,natural ,res\rces ( ! ,s5ate2 7,b7 ! ,committee on ,natural ,res\rces ( ! ,h\se ( ,repres5tatives2 7,c7 ! ,resid5t ,commission] ( ! ,commonweal?2 & 7,d7 ! ,gov]nor4 7#d7 ,*airp]son ,! ,secret>y %all s]ve z *airp]son ( ! ,au?ority4 7#e7 ,t]ms ( s]vice 7,a7 ,initial appo9tm5t2 designation ,ea* memb] appo9t$ to ! ,au?ority %all be-- 7i7 appo9t$ = an initial t]m ( #b ye>s2 & 7ii7 designat$ into #c ti]s1 consi/+ ( n m ?an-- 7,i7 #a memb] to s]ve 9 ti] ,i2 7,,ii7 #b memb]s to s]ve 9 ti] ,,ii2 & 7,,iii7 #b memb]s to s]ve 9 ti] ,,iii4 7,b7 ,subsequ5t appo9tm5ts ,= ! t]m imm$iately foll[+ ! initial t]m "u subp>agraph 7,a77i71 a memb] ( ! ,au?ority may be reappo9t$1 or a new memb] nam$1 = a t]m (-- 7i7 = ! memb] s]v+ 9 ti] ,i-- 7,i7 #a additional t]m ( n m ?an #a ye>2 & 7,,ii7 su* subsequ5t t]ms ( n m ?an #c ye>s z ! ,presid5t det]m9es to be appropriate2 7ii7 = a memb] s]v+ 9 ti] ,,ii-- 7,i7 #a additional t]m ( n m ?an #b ye>s2 & 7,,ii7 su* subsequ5t t]ms ( n m ?an #c ye>s z ! ,presid5t det]m9es to be appropriate2 & 7iii7 = a memb] s]v+ 9 ti] ,,iii-- 7,i7 #a additional t]m ( #c ye>s2 & 7,,ii7 su* subsequ5t t]ms ( n m ?an #c ye>s z ! ,presid5t det]m9es to be appropriate4 7,c7 ,removal ,! ,presid5t may remove a memb] ( ! ,au?ority only = cause4 7#f7 ,vot+ ,9 vot+ on any matt] 9 c>ry+ out ?is title-- 7,a7 ! *airp]son ( ! ,au?ority %all h #b votes2 & 7,b7 ea* o!r memb] ( ! ,au?ority %all h #a vote4 7#g7 ,citiz5%ip2 resid5ce 7,a7 ,citiz5%ip ,ea* memb] ( ! ,au?ority %all be a ,unit$ ,/ates citiz54 7,b7 ,resid5ce ,( ! memb]s ( ! ,au?ority describ$ 9 p>agraph 7#a77;,b7-- 7i7 #c %all ma9ta9 a prim>y resid5ce 9 ! ,commonweal?2 & 7ii7 #b %all n be resid5ts ( ! ,commonweal?4 7c7 ,qualifications = memb]%ip ,an individual meets ! qualifications = memb]%ip on ! ,au?ority if ! individual-- 7#a7 has k & exp]tise 9 f9ance1 managem5t1 & ! organization or op]ation ( bus9ess or gov]nm5t2 7#b7 complies ) ,f$]al conflict ( int]e/ requirem5ts ( section #bjh ( title #ah1 ,unit$ ,/ates ,code2 7#c7 is n1 & has n be5 = a p]iod ( n less ?an #e ye>s be=e ! date ( appo9tm5t1 an (fic] or employee (-- 7,a7 ! ,commonweal?2 or 7,b7 any public corporation2 & 7#d7 7,a7 does n provide goods or s]vices to ! ,commonweal?2 & 7,b7 is n ! sp\se1 p>5t1 *ild1 or sibl+ ( an individual :o provides goods or s]vices to ! ,commonweal?4 7d7 ,no comp5sation = s]vice ,a memb] ( ! ,au?ority-- 7#a7 %all s]ve )\t pay2 b 7#b7 may receive reimbursem5t = any reasonable & necess>y exp5ses incurr$ by reason ( s]vice on ! ,au?ority4 7e7 ,adoption ( bylaws = conduct+ bus9ess ( au?ority 7#a7 ,9 g5]al ,z soon z practicable aft] ! date ( appo9tm5t ( ! memb]s to ! ,au?ority1 ! ,au?ority %all adopt bylaws1 rules1 & proc$ures gov]n+ ! activities ( ! ,au?ority "u ?is title1 includ+ proc$ures = hir+ exp]ts & consultants4 7#b7 ,submission ,! bylaws1 rules1 & proc$ures adopt$ "u p>agraph 7#a7 %all-- 7,a7 be public docum5ts2 & 7,b7 be submitt$ by ! ,au?ority1 on adoption1 to ea* (-- 7i7 ! ,gov]nor2 7ii7 ! ,legislative ,assembly2 7iii7 ! ,presid5t2 & 7iv7 ,congress4 7#c7 ,c]ta9 activities requir+ approval ( majority ( memb]s 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 "u ! bylaws adopt$ "u p>agraph 7#a71 ! ,au?ority may conduct op]ations 9 accordance ) any proc$ures t ! ,au?ority consid]s appropriate4 7,b7 ,affirmative vote requir$ ,not)/&+ subp>agraph 7,a71 an affirmative vote ( a majority ( ! memb]s ( ! ,au?ority %all be requir$ = ! ,au?ority-- 7i7 to approve or disapprove a f9ancial plan & budget "u section #cbc or #cbd2 7ii7 to implem5t recomm5dations on f9ancial /ability & managem5t responsibility "u section #cbh2 7iii7 to issue new bonds1 notes1 or o!r obligations "u section #cca2 & 7iv7 to allocate res\rces "u title ,v4 7#d7 ,adoption ( rules & regulations ( ,commonweal? ,! ,au?ority may incorporate 9 ! bylaws1 rules1 & proc$ures adopt$ "u p>agraph 7#a7 any rules & regulations ( ! ,commonweal? gov]nm5t t ! ,au?ority consid]s to be appropriate to enable ! ,au?ority to c>ry out activities "u ?is title ) ! maximum degree ( indep5d5ce practicable4 #cab4 ,executive ,director & /aff 7a7 ,executive ,director 7#a7 ,appo9tm5t ,! *airp]son ( ! ,au?ority1 ) ! cons5t ( ! ,au?ority1 %all appo9t an ,executive ,director = ! ,au?ority4 7#b7 ,comp5sation 7,a7 ,9 g5]al ,subject to subp>agraph 7,b71 ! ,executive ,director %all be paid at a rate det]m9$ by ! ,au?ority4 7,b7 ,rate ( pay ,! rate ( pay = ! ,executive ,director "u subp>agraph 7,a7 may n exce$ ! basic pay payable = level ,,iv ( ! ,executive ,s*$ule "u section #ecae ( title #e1 ,unit$ ,/ates ,code4 7b7 ,/aff ,) ! approval ( ! *airp]son1 ! ,executive ,director may appo9t & fix ! pay ( additional p]sonnel z ! ,executive ,director consid]s appropriate1 subject to ! condition t no individual appo9t$ by ! ,executive ,director may be paid at a rate t exce$s ! rate ( pay = ! ,executive ,director4 7c7 ,inapplicability ( c]ta9 employm5t & procurem5t laws 7#a7 ,civil s]vice laws ,! ,executive ,director & /aff ( ! ,au?ority-- 7,a7 may be appo9t$ )\t reg>d to ! provisions ( title #e1 ,unit$ ,/ates ,code1 gov]n+ appo9tm5ts 9 ! competitive s]vice2 & 7,b7 may be paid )\t reg>d to ! provisions ( *apt] #ea & sub*apt] ,,iii ( *apt] #ec ( title #e1 ,unit$ ,/ates ,code1 relat+ to classification & ,g5]al ,s*$ule pay rates4 7#b7 ,commonweal? employm5t & procurem5t laws 7,a7 ,employm5t laws ,! ,executive ,director & /aff ( ! ,au?ority may be appo9t$ & paid )\t reg>d to ! provisions ( ! ,pu]to ,rico ,code gov]n+ appo9tm5ts & sal>ies4 7,b7 ,procurem5t laws ,! provisions ( ! ,pu]to ,rico ,code gov]n+ procurem5t %all n apply to ! ,au?ority4 7d7 ,/aff ( ,f$]al ag5cies ,on ! reque/ ( ! *airp]son1 ! head ( any ,f$]al or ,commonweal? gov]nm5t dep>tm5t or ag5cy may detail to ! ,au?ority1 on a reimbursable or nonreimbursable basis1 any ( ! p]sonnel ( ! dep>tm5t or ag5cy to assi/ ! ,au?ority 9 c>ry+ out ! duties ( ! ,au?ority "u ?is title4 #cac4 ,p[]s ( ,au?ority 7a7 ,9 g5]al ,! ,au?ority may1 = ! purpose ( c>ry+ out ?is title-- 7#a7 hold he>+s2 7#b7 sit & act at su* times & places z ! ,au?ority consid]s appropriate2 7#c7 take te/imony2 7#d7 receive evid5ce2 7#e7 adm9i/] oa?s or affirmations to witnesses appe>+ be=e ! ,au?ority2 & 7#f7 provide assi/ance & recomm5dations reg>d+ f9ancial /ability & managem5t responsibility to ! ,commonweal? gov]nm5t = ! purposes ( ?is title4 7b7 ,p[]s ( memb]s & ag5ts ,any memb] or ag5t ( ! ,au?ority may1 if au?oriz$ by ! ,au?ority1 take any action t ! ,au?ority is au?oriz$ to take "u ?is section4 7c7 ,obta9+ (ficial data 7#a7 ,f$]al ,gov]nm5t ,not)/&+ sections #eeb & #eeb;b ( title #e1 ,unit$ ,/ates ,code1 ! ,au?ority may secure directly f any ,f$]al dep>tm5t or ag5cy in=mation necess>y to enable ! ,au?ority to c>ry out ?is title1 ) ! approval ( ! head ( ! applicable ,f$]al dep>tm5t or ag5cy4 7#b7 ,commonweal? gov]nm5t 7,a7 ,9 g5]al ,not)/&+ any o!r provision ( law1 ! ,au?ority %all h ! "r to secure copies ( any records1 docum5ts1 in=mation1 or data f any entity ( ! ,commonweal? gov]nm5t necess>y to enable ! ,au?ority to c>ry out ! responsibilities ( ! ,au?ority "u ?is title4 7,b7 ,access ,at ! reque/ ( ! ,au?ority1 ! ,au?ority %all be grant$ direct access to any in=mation sy/ems1 records1 docum5ts1 in=mation1 or data describ$ 9 subp>agraph 7,a7 t w\ld enable ! ,au?ority to c>ry out ! responsibilities ( ! ,au?ority "u ?is title4 7,c7 ,provision by heads ( entities ,! head ( ! dep>tm5t or ag5cy ( ! ,commonweal? gov]nm5t responsible = ! in=mation %all provide ! ,au?ority ) any in=mation & assi/ance 7includ+ grant+ ! ,au?ority direct access to automat$ or o!r in=mation sy/ems7 z ! ,au?ority may require "u ?is p>agraph4 7d7 ,gifts1 beque/s1 & devises 7#a7 ,9 g5]al ,! ,au?ority may accept1 use1 & dispose ( gifts1 beque/s1 or devises ( s]vices & real & p]sonal prop]ty = ! purpose ( aid+ or facilitat+ ! "w ( ! ,au?ority4 7#b7 ,use ,any gifts1 beque/s1 or devises ( money accept$ by ! ,au?ority1 & any proce$s f sales ( o!r prop]ty receiv$ z gifts1 beque/s1 or devises by ! ,au?ority1 %all-- 7,a7 be deposit$ 9 an acc\nt e/abli%$ by ! ,au?ority2 & 7,b7 be available = disbursem5t on ord] ( ! *airp]son ( ! ,au?ority4 7e7 ,subpo5a p[] 7#a7 ,9 g5]al ,! *airp]son ( ! ,au?ority may issue subpo5as requir+ ! att5dance & te/imony ( witnesses & ! production ( any evid5ce relat+ to any matt] "u inve/igation by ! ,au?ority4 7#b7 ,scope ,! att5dance ( witnesses & ! production ( evid5ce may be requir$ by ! ,au?ority-- 7,a7 f any place )9 ! ,unit$ ,/ates2 & 7,b7 at any designat$ place ( he>+ )9 ! ,unit$ ,/ates4 7#c7 ,failure to obey a subpo5a 7,a7 ,application to unit$ /ates di/rict c\rt ,if a p]son refuses to obey a subpo5a issu$ "u p>agraph 7#a71 ! ,au?ority may apply to a ,unit$ ,/ates di/rict c\rt = an ord] requir+ ! p]son to appe> be=e ! ,au?ority to give te/imony or produce evid5ce relat+ to ! matt] "u inve/igation4 7,b7 ,judicial di/rict ,an application may be made "u subp>agraph 7,a7 9-- 7i7 ! judicial di/rict 9 :i* ! he>+ is conduct$2 or 7ii7 ! judicial di/rict 9 :i* ! p]son subject to ! subpo5a is f\nd1 resides1 or transacts bus9ess4 7,c7 ,contempt ,! ,unit$ ,/ates di/rict c\rt may treat z civil contempt any failure to obey ! ord] ( a c\rt "u ?is p>agraph4 7#d7 ,s]vice ( subpo5as ,! ,au?ority %all s]ve subpo5as "u ?is subsection 9 ! mann] provid$ = subpo5as issu$ by ,unit$ ,/ates di/rict c\rt "u ! ,f$]al ,rules ( ,civil ,proc$ure = ! ,unit$ ,/ates di/rict c\rts4 7#e7 ,s]vice ( process ,all s]vice ( process ( any c\rt to :i* application is made "u p>agraph 7#b7 may be s]v$ 9 ! judicial di/rict 9 :i* ! p]son requir$ to be s]v$ resides or may be f\nd4 7f7 ,adm9i/rative support s]vices ,on ! reque/ ( ! ,au?ority1 ! ,adm9i/rator ( ,g5]al ,s]vices may provide to ! ,au?ority1 on a reimbursable basis1 ! adm9i/rative support s]vices necess>y = ! ,au?ority to c>ry out ! responsibilities ( ! ,au?ority "u ?is title4 7g7 ,au?ority ,to ent] into contracts ,! ,executive ,director ( ! ,au?ority may ent] into any contract t ! ,executive ,director consid]s appropriate 7subject to ! approval ( ! *airp]son ( ! ,au?ority7 to c>ry out ! responsibilities ( ! ,au?ority "u ?is title4 7h7 ,civil actions ,to en=ce p[]s ,! ,au?ority may seek judicial en=cem5t ( ! au?ority to c>ry out ! responsibilities ( ! ,au?ority "u ?is title4 7i7 ,p5alties 7#a7 ,acts prohibit$ ,any (fic] or employee ( ! ,commonweal? gov]nm5t %all be guilty ( a misdemeanor if ! (fic] or employee-- 7,a7 7i7 takes any action 9 violation ( any valid ord] ( ! ,au?ority2 or 7ii7 fails or refuses to take any action requir$ by an ord] describ$ 9 clause 7i72 or 7,b7 7i7 kn[+ly & willfully prep>es1 pres5ts1 or c]tifies any in=mation 7includ+ any projections or e/imates7 or report = ! ,au?ority or any ( ! ag5ts ( ! ,bo>d t is false or mislead+2 or 7ii7 on le>n+ t any in=mation describ$ 9 clause 7i7 is false or mislead+1 fails to imm$iately advise ! ,au?ority or ag5ts ( ! ,bo>d 9 writ+ ( ! discov]y4 7#b7 ,adm9i/rative discipl9e ,9 addition to any o!r applicable p5alty1 any (fic] or employee ( ! ,commonweal? gov]nm5t :o kn[+ly & willfully violates p>agraph 7#a7 %all be subject to appropriate adm9i/rative discipl9e1 includ+1 z appropriate-- 7,a7 susp5sion f duty )\t pay2 or 7,b7 removal f (fice by ord] ( ! ,gov]nor or ,au?ority4 7#c7 ,report by ,gov]nor on discipl9>y actions tak5 ,9 ! case ( a violation ( p>agraph 7#a7 by an (fic] or employee ( ! ,commonweal? gov]nm5t1 ! ,gov]nor %all imm$iately submit to ! ,au?ority a report t-- 7,a7 describes all p]t95t facts2 & 7,b7 includes a /atem5t ( ! action tak5 relat+ to ! violation4 #cad4 ,exemption f liability = claims ,! ,au?ority 7includ+ ! memb]s ( ! ,au?ority7 may n be liable = any obligation ( or claim aga9/ ! ,commonweal? result+ f actions tak5 to c>ry out ?is title4 #cae4 ,treatm5t ( actions 7a7 ,jurisdiction e/abli%$ ,except z provid$ 9 section #cac7;e77#c71 any action aga9/ ! ,au?ority or any action o!rwise aris+ out ( ?is title1 9 :ole or 9 "p1 %all be br\ght 9 ! ,unit$ ,/ates ,di/rict ,c\rt = ! ,di/rict ( ,pu]to ,rico4 7b7 ,appeal 7#a7 ,c\rt ( ,appeals ,not)/&+ any o!r provision ( law1 any ord] ( ! ,unit$ ,/ates ,di/rict ,c\rt = ! ,di/rict ( ,pu]to ,rico t is issu$ pursuant to an action br\ght "u subsection 7a7 %all be reviewable only pursuant to a notice ( appeal to ! ,unit$ ,/ates ,c\rt ( ,appeals = ! ,fir/ ,circuit4 7#b7 ,supreme ,c\rt ,not)/&+ any o!r provision ( law1 review by ! ,supreme ,c\rt ( a decision ( ! ,c\rt ( ,appeals t is issu$ "u p>agraph 7#a7 may be available only if ! petition = review is fil$ by ! date t is #aj days aft] ! date ( entry ( ! decision ( ! ,c\rt ( ,appeals4 7c7 ,tim+ ( relief ,no ord] ( any c\rt grant+ decl>atory or injunctive relief aga9/ ! ,au?ority 7includ+ relief p]mitt+ or requir+ ! obligation1 borr[+1 or exp5diture ( funds7 %all take effect dur+-- 7#a7 ! p5d5cy ( ! action be=e ! c\rt2 7#b7 ! p]iod dur+ :i* appeal may be tak52 or 7#c7 if appeal is tak51 ! p]iod be=e ! c\rt has ent]$ a f9al ord] dispos+ ( ! action4 7d7 ,exp$it$ consid]ation ,x %all be ! duty ( ! ,unit$ ,/ates ,di/rict ,c\rt = ! ,di/rict ( ,pu]to ,rico1 ! ,unit$ ,/ates ,c\rt ( ,appeals = ! ,fir/ ,circuit1 & ! ,supreme ,c\rt to advance on ! docket1 & to exp$ite to ! greate/ ext5t practicable1 ! disposition ( any action br\ght "u subsection 7a74 #caf4 ,fund+ = op]ation ( ,au?ority 7a7 ,annual budget+ process 7#a7 ,submission ( budget ,! ,au?ority %all submit to ! ,secret>y = inclusion 9 ! annual budget ( ! ,presid5t a propos$ budget = ! ,au?ority = ea* fiscal ye>4 7#b7 ,cont5ts ( budget ,a budget submitt$ "u p>agraph 7#a7 %all describe-- 7,a7 exp5ditures ( ! ,au?ority by category1 includ+ exp5ditures = /aff ( ! ,au?ority2 7,b7 s]vices ( p]sonnel & o!r s]vices provid$ by or on behalf ( ! ,au?ority = :i* ! ,au?ority made no reimbursem5t2 & 7,c7 any gifts or beque/s made to ! ,au?ority dur+ ! previ\s fiscal ye>4 7#c7 ,appropriations requir$ ,= fiscal ye> #bjaf & ea* fiscal ye> !reaft]1 an am\nt may be obligat$ or exp5d$ by ! ,au?ority = a fiscal ye> only if ! am\nt has be5 approv$ by an ,act ( ,congress4 7b7 ,special rule = fund+ ( op]ations dur+ fiscal ye> #bjae ,z soon z practicable aft] ! date ( appo9tm5t ( ! memb]s ( ! ,au?ority1 ! ,au?ority %all submit to ! ,gov]nor & ! ,presid5t1 = submission to ,congress-- 7#a7 a reque/ = reprogramm+ ( funds "u ! budget acc\nt = ! ,dep>tm5t ( ! ,treasury2 & 7#b7 a description ( anticipat$ exp5ditures ( ! ,au?ority = fiscal ye> #bjae4 #cag4 ,susp5sion ( activities ,! ,au?ority %all susp5d any activities c>ri$ out "u ?is title1 & ! t]ms ( ! memb]s ( ! ,au?ority %all expire1 on ! date t is #c ye>s aft] ! date on :i* ! ,au?ority c]tifies t all control p]iods initiat$ "u section #cbb h t]m9at$4 #cah4 ,application ( laws ( ,commonweal? to ,au?ority 7a7 ,no control1 sup]vision1 ov]sight1 or review by ,gov]nor or ,legislative ,assembly ,! ,gov]nor & ! ,legislative ,assembly may n ex]cise any control1 sup]vision1 ov]sight1 or review ov] ! ,au?ority or any activities ( ! ,au?ority4 7b7 ,au?ority n subject to repres5tation by ,secret>y ( ,ju/ice ,9 any action br\ght by1 or on behalf (1 ! ,au?ority1 & 9 any action br\ght aga9/ ! ,au?ority-- 7#a7 ! ,au?ority %all be repres5t$ by su* c\nsel z ! ,au?ority may select2 b 7#b7 9 no case may ! ,au?ority be repres5t$ by ! ,secret>y ( ,ju/ice ( ! ,commonweal?4 ,b ,responsibilities ( au?ority ,i ,control p]iod #cba4 ,e>ly opt-9 au?ority ,not)/&+ ! timeframes provid$ 9 subsections 7a77#a7 & 7b77#a7 ( section #cbb1 ! ,au?ority may c>ry out ?is title beg9n+ on ! date on :i* ! ,legislative ,assembly enacts a resolution support+ ! actions ( ! ,au?ority au?oriz$ by section #cbb4 #cbb4 ,c]tifications by ,au?ority 7a7 ,public corporations 7#a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act & annually !reaft]1 ! ,au?ority %all c]tify :e!r any public corporation-- 7,a7 does n h suffici5t rev5ue to meet ! debt obligations ( ! public corporation2 7,b7 has default$ ) respect to any loan1 bond1 note1 or o!r =m ( borr[+2 7,c7 is unable to meet ! payroll ( ! public corporation = any pay p]iod2 7,d7 has a ca% deficit at ! end ( any qu>t] ( ! fiscal ye> equal to or great] ?an ! diff]5ce betwe5-- 7i7 ! e/imat$ rev5ues ( ! public corporation dur+ ! rema9d] ( ! fiscal ye>2 & 7ii7 ! e/imat$ exp5ditures ( ! public corporation 7includ+ repaym5ts ( tempor>y borr[+7 dur+ ! rema9d] ( ! fiscal ye>2 & 7,e7 fails to make any requir$ paym5ts relat+ to p5sions & b5efits = curr5t & =m] employees ( ! public corporation4 7#b7 ,budget control ,if ! ,au?ority c]tifies t a public corporation is unable to meet any ( ! requirem5ts "u p>agraph 7#a71 a control p]iod %all be initiat$ = ! public corporation 9 accordance ) section #cbc4 7#c7 ,t]m9ation ,a control p]iod = a public corporation initiat$ "u ?is subsection t]m9ates on ! date on :i* ! ,au?ority c]tifies t-- 7,a7 ! public corporation has adequate access to %ort-t]m & long-t]m cr$it m>kets at reasonable int]e/ rates to meet ! borr[+ ne$s ( ! public corporation2 & 7,b7 = #b consecutive ye>s aft] ! initiation ( a control p]iod1 ! exp5ditures made by ! public corporation dur+ ea* fiscal ye> did n exce$ ! rev5ues ( ! public corporation dur+ t ye>1 z det]m9$ 9 accordance ) g5]ally accept$ acc\nt+ pr9ciples4 7#d7 ,consultation requir$ ,9 mak+ a c]tification "u ?is subsection1 ! ,au?ority %all consult ) ! ,gov]nm5t ,developm5t ,bank ( ,pu]to ,rico4 7#e7 ,em]g5cy manag] 7,a7 ,9 g5]al ,if1 dur+ a control p]iod = a public corporation1 ! ,au?ority c]tifies t ov] ! c\rse ( #b consecutive qu>t]s ! exp5ditures made by a public corporation exce$ ! rev5ues ( t public corporation 9 violation ( ! f9ancial plan & budget requir$ "u section #cbc1 ! ,au?ority may appo9t an em]g5cy manag] = ! public corporation4 7,b7 ,au?ority 7i7 ,au?ority ( bo>d ( directors & (fic]s ,! em]g5cy manag] %all ex]cise all au?orities previ\sly ex]cis$ by ! bo>d ( directors & (fic]s ( ! public corporation "u ! *>t]1 bylaws1 or organic /atute ( ! public corporation or ! applicable laws ( ! ,commonweal?4 7ii7 ,additional au?ority 7,i7 ,9 g5]al ,9 addition to ! au?ority "u clause 7i71 ! em]g5cy manag] may propose increases 91 decreases 91 or o!r *anges to any rates1 fees1 taxes1 or o!r *>ges t ! public corporation has ! p[] to impose on p or prop]ty )9 ! ,commonweal?4 7,,ii7 ,requir$ demon/ration ,an increase1 decrease1 or *ange propos$ "u subclause 7,i7 %all be accompani$ by a demon/ration ( ! reasonable necessity ( ! increase1 decrease1 or *ange to ma9ta9-- 7aa7 ! op]ation1 prop]ty1 physical plant & equipm5t1 or f9ancial condition ( ! public corporation2 or 7bb7 ! ability ( ! public corporation to obta9 unsecur$ cr$it on ! capital m>kets at a reasonable int]e/ rate4 7,,iii7 ,review 7aa7 ,9 g5]al ,an increase1 decrease1 or *ange propos$ "u subclause 7,i7 %all be subject to review by any commission1 au?ority1 ag5cy1 or gov]nm5tal body ) au?ority to review ! rates1 fees1 taxes1 or o!r *>ges impos$ by ! public corporation4 7bb7 ,deem$ approval ,if a commission1 au?ority1 ag5cy1 or gov]nm5tal body fails to approve & implem5t or disapprove ! propos$ increase1 decrease1 or *ange by ! date t is #abj days aft] ! date on :i* ! increase1 decrease1 or *ange is submitt$ to ! commission1 au?ority1 ag5cy1 or gov]nm5tal body1 ! propos$ increase1 decrease1 or *ange %all be deem$ approv$ by ! commission1 au?ority1 ag5cy1 or gov]nm5tal body4 7,c7 ,sal>y ,! public corporation %all be responsible = pay+ ! sal>y & any o!r comp5sation ( ! em]g5cy manag]4 7b7 ,commonweal? gov]nm5t 7#a7 ,9 g5]al ,n lat] ?an #b ye>s aft] ! date ( enactm5t ( ?is ,act & annually !reaft]1 ! ,au?ority %all c]tify :e!r ! ,commonweal? gov]nm5t-- 7,a7 does n h suffici5t rev5ue to meet debt obligations ( ! ,commonweal? gov]nm5t2 7,b7 has default$ ) respect to any loan1 bond1 note1 or o!r =m ( borr[+2 7,c7 is unable to meet ! payroll ( ! ,commonweal? gov]nm5t = any pay p]iod2 7,d7 has a ca% deficit at ! end ( any qu>t] ( ! fiscal ye> equal to or great] ?an ! diff]5ce betwe5-- 7i7 ! e/imat$ rev5ues ( ! ,commonweal? gov]nm5t dur+ ! rema9d] ( ! fiscal ye>2 & 7ii7 ! e/imat$ exp5ditures ( ! ,commonweal? gov]nm5t 7includ+ repaym5ts ( tempor>y borr[+7 dur+ ! rema9d] ( ! fiscal ye>2 & 7,e7 fails to make any requir$ paym5ts relat+ to p5sions & b5efits = curr5t & =m] employees ( ! ,commonweal? gov]nm5t4 7#b7 ,budget control ,if ! ,au?ority c]tifies t ! ,commonweal? gov]nm5t is unable to meet any ( ! requirem5ts "u p>agraph 7#a71 a control p]iod = ! ,commonweal? gov]nm5t is initiat$ 9 accordance ) section #cbd4 7#c7 ,t]m9ation ,a control p]iod = ! ,commonweal? gov]nm5t initiat$ "u ?is subsection t]m9ates on ! date on :i* ! ,au?ority c]tifies t-- 7,a7 ! ,commonweal? gov]nm5t has adequate access to %ort-t]m & long-t]m cr$it m>kets at reasonable int]e/ rates to meet ! borr[+ ne$s ( ! ,commonweal? gov]nm5t2 & 7,b7 = #d consecutive ye>s aft] ! initiation ( a control p]iod = ! ,commonweal? gov]nm5t1 ! exp5ditures made by ! ,commonweal? gov]nm5t dur+ ea* fiscal ye> did n exce$ ! rev5ues ( ! ,commonweal? gov]nm5t dur+ t ye>1 z det]m9$ 9 accordance ) ! g5]ally accept$ acc\nt+ pr9ciples conta9$ 9 ! compreh5sive annual f9ancial report = ! ,commonweal?4 7#d7 ,requir$ consultation ,9 mak+ a c]tification "u ?is subsection1 ! ,au?ority %all consult ) ! ,gov]nm5t ,developm5t ,bank ( ,pu]to ,rico4 #cbc4 ,f9ancial plan & budget = public corporations dur+ control p]iod 7a7 ,developm5t2 ,cont5ts 7#a7 ,9 g5]al ,= ea* fiscal ye> = :i* a public corporation is 9 a control p]iod "u section #cbb7;a71 ! ,gov]nor or ! em]g5cy manag] 7z applicable7 %all develop & submit to ! ,au?ority a f9ancial plan & budget = ! public corporation 9 accordance ) ?is section4 7#b7 ,cont5ts 7,a7 ,9 g5]al ,a f9ancial plan & budget = ! public corporation = a fiscal ye> %all specify ! budgets = ! public corporation = ! applicable fiscal ye> & ! subsequ5t #c fiscal ye>s 7includ+ ! project$ rev5ues & exp5ditures ( ea* fund ( ! public corporation = ^? fiscal ye>s71 9 accordance ) ! requirem5ts describ$ 9 subp>agraph 7,b74 7,b7 ,requirem5ts ,! f9ancial plan & budget %all-- 7i7 meet ! /&>ds describ$ 9 p>agraph 7#c7 to promote ! f9ancial /ability ( ! public corporation2 7ii7 provide = e/imates ( rev5ues & exp5ditures on a modifi$ accrual basis2 7iii7 7,i7 describe lump-sum exp5ditures by dep>tm5t1 by object class2 7,,ii7 describe capital exp5ditures 7toge!r ) a s*$ule ( project$ capital commitm5ts ( ! public corporation & propos$ s\rces ( fund+72 7,,iii7 conta9 e/imates ( %ort-t]m & long-t]m debt1 :e!r out/&+ or anticipat$ to be issu$2 & 7,,iv7 conta9 ca% fl[ =eca/s = ea* fund ( ! public corporation1 at su* int]vals z ! ,au?ority may require2 7iv7 include a /atem5t describ+ me?ods ( e/imations & significant assumptions2 & 7v7 include su* o!r provisions1 & meet su* o!r crit]ia1 z ! ,au?ority consid]s to be appropriate to meet ! purposes ( ?is title1 includ+ provisions relat+ to-- 7,i7 *anges 9 p]sonnel policies & levels = ea* dep>tm5t ( ! public corporation2 7,,ii7 *anges 9 ! /ructure & organization ( ! public corporation2 & 7,,iii7 managem5t initiatives to promote-- 7aa7 productivity2 7bb7 improvem5t 9 ! deliv]y ( s]vices2 or 7cc7 co/ sav+s4 7#c7 ,/&>ds to promote f9ancial /ability 7,a7 ,9 g5]al ,! /&>ds to promote ! f9ancial /ability ( ! public corporation applicable to ! f9ancial plan & budget = a fiscal ye> are z foll[s3 7i7 ,9 ! case ( ! f9ancial plan & budget = ! fir/ fiscal ye> ( a control p]iod1 ! exp5ditures ( ! public corporation may n exce$ ! rev5ues ( ! public corporation = t fiscal ye>4 7ii7 ,dur+ ea* ( ! #e subsequ5t fiscal ye>s1 ! public corporation %all make cont9u\s1 sub/antial progress t[>d equaliz+ ! exp5ditures & rev5ues ( ! public corporation = ^? fiscal ye>s 9 equal annual in/allm5ts1 to ! maximum ext5t practicable4 7iii7 ,! public corporation %all provide = ! ord]ly liquidation ( ! cumulative fund balance deficit ( ! public corporation1 z evid5c$ by f9ancial /atem5ts prep>$ 9 accordance ) g5]ally accept$ acc\nt+ pr9ciples4 7iv7 ,if funds 9 any acc\nt ( ! public corporation t are d$icat$ = specific purposes h be5 )drawn f t acc\nt = any o!r purpose1 ! public corporation %all fully re/ore ! funds to ! acc\nt4 7v7 ,! f9ancial plan & budget %all ensure ! cont9u+ long-t]m f9ancial /ability ( ! public corporation1 z indicat$ by factors includ+-- 7,i7 access to %ort-t]m & long-t]m capital m>kets2 7,,ii7 ! effici5t managem5t ( ! public corporation work=ce2 & 7,,iii7 ! effective provision ( s]vices by ! public corporation4 7,b7 ,application ( s\nd budget>y practices2 assumptions bas$ on curr5t law ,9 meet+ ! /&>ds describ$ 9 subp>agraph 7,a7 ) respect to a f9ancial plan & budget = a fiscal ye>1 ! public corporation %all-- 7i7 apply s\nd budget>y practices1 includ+-- 7,i7 r$uc+ co/s & o!r exp5ditures2 7,,ii7 improv+ productivity2 7,,iii7 increas+ rev5ues2 or 7,,iv7 any comb9ation ( ^? practices2 & 7ii7 base e/imates ( rev5ues & exp5ditures on ,f$]al law1 z 9 effect at ! "t ( prep>ation ( ! f9ancial plan & budget4 7b7 ,submission1 review1 & approval 7#a7 ,submission ,n lat] ?an ,febru>y #a ( ea* fiscal ye> prec$+ a fiscal ye> dur+ :i* a public corporation is 9 a control p]iod "u section #cbb7;a71 ! ,gov]nor or em]g5cy manag] 7z applicable7 %all submit to ! ,au?ority & ! ,legislative ,assembly a f9ancial plan & budget = ! public corporation = t foll[+ fiscal ye>1 z develop$ 9 accordance ) ?is subsection4 7#b7 ,review by au?ority ,on receipt ( a f9ancial plan & budget = a fiscal ye> "u p>agraph 7#a71 ! ,au?ority-- 7,a7 %all promptly review ! f9ancial plan & budget2 & 7,b7 9 conduct+ ! review1 may reque/ any additional in=mation ! ,au?ority consid]s to be necess>y & appropriate to c>ry out ?is "p4 7#c7 ,action on approval 7,a7 ,c]tification to gov]nor 7i7 ,9 g5]al ,if ! ,au?ority det]m9es t ! f9ancial plan & budget = a fiscal ye> submitt$ "u p>agraph 7#a7 meets ! applicable requirem5ts ( ?is section-- 7,i7 ! ,au?ority %all-- 7aa7 approve ! f9ancial plan & budget2 & 7bb7 submit a notice c]tify+ t approval to-- 7,,aa7 ! em]g5cy manag] 7z applicable72 7,,bb7 ! ,gov]nor2 7,,cc7 ! ,legislative ,assembly2 7,,dd7 ! ,presid5t2 & 7,,ee7 ,congress2 & 7,,ii7 ! ,gov]nor or ! em]g5cy manag] 7z applicable7 %all promptly submit ! f9ancial plan & budget to ! ,legislative ,assembly4 7ii7 ,deem$ approval 7,i7 ,9 g5]al ,if ! ,au?ority has n provid$ to ! em]g5cy manag] 7z applicable71 ! ,gov]nor1 ! ,legislative ,assembly1 & ,congress a notice c]tify+ approval "u clause 7i77,i77bb7 or a /atem5t ( disapproval "u p>agraph 7#d77;,a77ii7 by ! date t is #cj days aft] ! date on :i* ! ,au?ority receives ! f9ancial plan & budget "u p>agraph 7#a71 ! ,au?ority %all be deem$ to h-- 7aa7 approv$ ! f9ancial plan & budget2 & 7bb7 submitt$ a notice c]tify+ approval describ$ 9 clause 7i77,i77bb7 to-- 7,,aa7 ! em]g5cy manag] 7z applicable72 7,,bb7 ! ,gov]nor2 7,,cc7 ! ,legislative ,assembly2 7,,dd7 ! ,presid5t2 & 7,,ee7 ,congress4 7,,ii7 ,explanation ( failure to respond ,if subclause 7,i7 applies ) respect to a f9ancial plan & budget1 ! ,au?ority %all submit to ! em]g5cy manag] 7z applicable71 ! ,gov]nor1 ! ,legislative ,assembly1 ! ,presid5t1 & ,congress an explanation = ! failure ( ! ,au?ority to submit a notice c]tify+ approval or a /atem5t ( disapproval dur+ ! #cj-;day p]iod describ$ 9 t subclause4 7,b7 ,adoption by legislative assembly ,n lat] ?an #cj days aft] ! date ( receipt ( ! f9ancial plan & budget = a fiscal ye> f ! ,gov]nor or ! em]g5cy manag] 7z applicable7 "u subp>agraph 7,a77i77,,ii71 ! ,legislative ,assembly %all-- 7i7 by ,act1 adopt ! f9ancial plan & budget1 :i* %all s]ve z ! adoption ( ! budget ( ! public corporation = ! fiscal ye>2 & 7ii7 submit ! f9ancial plan & budget to-- 7,i7 ! em]g5cy manag] 7z applicable72 7,,ii7 ! ,gov]nor2 & 7,,iii7 ! ,au?ority4 7#d7 ,action on disapproval 7,a7 ,9 g5]al ,if ! ,au?ority det]m9es t ! f9ancial plan & budget = a fiscal ye> submitt$ "u p>agraph 7#a7 does n meet ! applicable requirem5ts "u ?is section1 ! ,au?ority %all-- 7i7 disapprove ! f9ancial plan & budget2 & 7ii7 submit to ! em]g5cy manag] 7z applicable71 ! ,gov]nor1 & ! ,legislative ,assembly a /atem5t conta9+-- 7,i7 ! reasons = ! disapproval2 7,,ii7 a description ( ! am\nt ( any %ortfall 9 ! budget or f9ancial plan2 & 7,,iii7 any recomm5dations = revisions to ! budget ! ,au?ority consid]s to be appropriate to ensure t ! f9ancial plan & budget meets ! applicable requirem5ts "u ?is section4 7,b7 ,revis$ f9ancial plan & budget 7i7 ,9 g5]al ,n lat] ?an #ae days aft] ! date ( receipt ( a /atem5t f ! ,au?ority "u subp>agraph 7,a77ii71 ! ,gov]nor or ! em]g5cy manag] 7z applicable7 %all promptly submit to ! ,au?ority & ! ,legislative ,assembly a revis$ f9ancial plan & budget = ! applicable fiscal ye> t addresses ! reasons ( ! ,au?ority = disapproval4 7ii7 ,approval ,if ! ,au?ority det]m9es t ! revis$ f9ancial plan & budget = a fiscal ye> submitt$ by ! ,gov]nor or ! em]g5cy manag] 7z applicable7 "u clause 7i7 meets ! applicable requirem5ts "u ?is section-- 7,i7 ! ,au?ority %all-- 7aa7 approve ! f9ancial plan & budget2 & 7bb7 submit a notice c]tify+ t approval to-- 7,,aa7 ! em]g5cy manag] 7z applicable72 7,,bb7 ! ,gov]nor2 7,,cc7 ! ,legislative ,assembly2 7,,dd7 ! ,presid5t2 & 7,,ee7 ,congress2 & 7,,ii7 ! ,gov]nor or ! em]g5cy manag] 7z applicable7 %all promptly submit ! f9ancial plan & budget to ! ,legislative ,assembly4 7iii7 ,disapproval 7,i7 ,9 g5]al ,if ! ,au?ority det]m9es t ! revis$ f9ancial plan & budget = a fiscal ye> submitt$ by ! ,gov]nor or ! em]g5cy manag] 7z applicable7 "u clause 7i7 does n meet ! applicable requirem5ts "u ?is section1 ! ,au?ority %all-- 7aa7 disapprove ! f9ancial plan & budget2 7bb7 submit to ! ,gov]nor1 ! em]g5cy manag] 7z applicable71 ! ,legislative ,assembly1 ! ,presid5t1 & ,congress a /atem5t conta9+ ! reasons = ! disapproval2 & 7cc7 7,,aa7 recomm5d a f9ancial plan & budget = ! public corporation t meets ! applicable requirem5ts "u ?is section2 & 7,,bb7 submit ! f9ancial plan & budget to ! ,gov]nor1 ! em]g5cy manag] 7z applicable71 & ! ,legislative ,assembly4 7,,ii7 ,submission ( reject$ f9ancial plan & budget ,! ,gov]nor or ! em]g5cy manag] 7z applicable7 %all promptly submit to ! ,legislative ,assembly a revis$ f9ancial plan & budget disapprov$ by ! ,au?ority "u ?is clause4 7iv7 ,deem$ approval 7,i7 ,9 g5]al ,if ! ,au?ority has n provid$ to ! ,gov]nor1 ! ,legislative ,assembly1 & ,congress a notice c]tify+ approval "u clause 7ii77,i77bb7 or a /atem5t ( disapproval "u clause 7iii77,i77bb7 by ! date t is #ae days aft] ! date on :i* ! ,au?ority receives ! revis$ f9ancial plan & budget submitt$ by ! ,gov]nor or ! em]g5cy manag] 7z applicable7 "u clause 7i71 ! ,au?ority %all be deem$ to h-- 7aa7 approv$ ! revis$ f9ancial plan & budget2 & 7bb7 submitt$ a notice c]tify+ approval describ$ 9 clause 7ii77,i77bb7 to-- 7,,aa7 ! em]g5cy manag] 7z applicable72 7,,bb7 ! ,gov]nor2 7,,cc7 ! ,legislative ,assembly2 7,,dd7 ! ,presid5t2 & 7,,ee7 ,congress4 7,,ii7 ,explanation ( failure to respond ,if subclause 7,i7 applies ) respect to a f9ancial plan & budget1 ! ,au?ority %all submit to ! ,gov]nor1 ! em]g5cy manag] 7z applicable71 ! ,legislative ,assembly1 ! ,presid5t1 & ,congress an explanation = ! failure ( ! ,au?ority to submit a notice c]tify+ approval or a /atem5t ( disapproval dur+ ! #ae-;day p]iod describ$ 9 t subclause4 7,c7 ,action by legislative assembly 7i7 ,9 g5]al ,n lat] ?an #cj days aft] ! date ( receipt ( an approv$ revis$ f9ancial plan & budget ( ! ,gov]nor or ! em]g5cy manag] 7z applicable7 = a fiscal ye> "u subp>agraph 7,b77ii7 or1 9 ! case ( a f9ancial plan & budget disapprov$ by ! ,au?ority1 ! f9ancial plan & budget recomm5d$ by ! ,au?ority "u subp>agraph 7,b77iii77,i77cc71 ! ,legislative ,assembly %all-- 7,i7 by ,act1 adopt ! f9ancial plan & budget1 :i* %all s]ve z ! adoption ( ! budget ( ! public corporation = ! fiscal ye>2 & 7,,ii7 submit ! f9ancial plan & budget to-- 7aa7 ! em]g5cy manag] 7z applicable72 7bb7 ! ,gov]nor2 & 7cc7 ! ,au?ority4 7#e7 ,revisions to f9ancial plan & budget 7,a7 ,action by gov]nor ,! ,gov]nor or ! em]g5cy manag] 7z applicable7 may submit to ! ,au?ority propos$ revisions to ! f9ancial plan & budget = a control ye> at any "t dur+ ! control ye>4 7,b7 ,proc$ure ,except z provid$ 9 subp>agraph 7,c71 ! proc$ures describ$ 9 p>agraphs 7#b71 7#c71 & 7#d7 %all apply ) respect to a propos$ revision to a f9ancial plan & budget 9 ! same mann] z ^? proc$ures apply ) respect to ! orig9al f9ancial plan & budget4 7,c7 ,exception = revisions n affect+ appropriations ,to ! ext5t t a propos$ revision to a f9ancial plan & budget adopt$ by ! ,legislative ,assembly pursuant to ?is section does n increase ! am\nt ( sp5d+ ) respect to any acc\nt ( ! public corporation1 ! revision %all take effect on ! date ( approval by ! ,au?ority ( ! revision1 subject to review by ,congress4 #cbd4 ,f9ancial plan & budget = ! ,commonweal? dur+ a control p]iod 7a7 ,f9ancial plan & budget requir$2 cont5ts 7#a7 ,9 g5]al ,= ea* fiscal ye> = :i* ! ,commonweal? gov]nm5t is 9 a control p]iod "u section #cbb7;b71 ! ,gov]nor %all develop & submit to ! ,au?ority a f9ancial plan & budget = ! ,commonweal? 9 accordance ) ?is section4 7#b7 ,cont5ts 7,a7 ,9 g5]al ,a f9ancial plan & budget = ! ,commonweal? = a fiscal ye> %all specify ! budgets = ! ,commonweal? gov]nm5t = ! applicable fiscal ye> & ! subsequ5t #c fiscal ye>s 7includ+ ! project$ rev5ues & exp5ditures ( ea* fund ( ! ,commonweal? gov]nm5t = ^? fiscal ye>s71 9 accordance ) ! requirem5ts describ$ 9 subp>agraph 7,b74 7,b7 ,requirem5ts ,! f9ancial plan & budget %all-- 7i7 meet ! /&>ds describ$ 9 p>agraph 7#c7 to promote ! f9ancial /ability ( ! ,commonweal? gov]nm5t2 7ii7 provide = e/imates ( rev5ues & exp5ditures on a modifi$ accrual basis2 7iii7 7,i7 describe lump-sum exp5ditures by dep>tm5t1 by object class2 7,,ii7 describe capital exp5ditures 7toge!r ) a s*$ule ( project$ capital commitm5ts ( ! ,commonweal? gov]nm5t & propos$ s\rces ( fund+72 7,,iii7 conta9 e/imates ( %ort-t]m & long-t]m debt1 :e!r out/&+ or anticipat$ to be issu$2 & 7,,iv7 conta9 ca% fl[ =eca/s = ea* fund ( ! ,commonweal? gov]nm5t1 at su* int]vals z ! ,au?ority may require2 7iv7 include a /atem5t describ+ me?ods ( e/imations & significant assumptions2 & 7v7 include su* o!r provisions1 & meet su* o!r crit]ia1 z ! ,au?ority consid]s to be appropriate to meet ! purposes ( ?is title1 includ+ provisions relat+ to-- 7,i7 *anges 9 p]sonnel policies & levels = ea* dep>tm5t or ag5cy ( ! ,commonweal? gov]nm5t2 7,,ii7 *anges 9 ! /ructure & organization ( ! ,commonweal? gov]nm5t2 & 7,,iii7 managem5t initiatives to promote-- 7aa7 productivity2 7bb7 improvem5t 9 ! deliv]y ( s]vices2 or 7cc7 co/ sav+s4 7#c7 ,/&>ds to promote f9ancial /ability 7,a7 ,9 g5]al ,! /&>ds to promote ! f9ancial /ability ( ! ,commonweal? gov]nm5t applicable to ! f9ancial plan & budget = a fiscal ye> are z foll[s3 7i7 ,9 ! case ( ! f9ancial plan & budget = ! fir/ fiscal ye> ( a control p]iod1 ! exp5ditures ( ! ,commonweal? gov]nm5t = ! fiscal ye> may n exce$ ! rev5ues ( ! ,commonweal? gov]nm5t = t fiscal ye>4 7ii7 ,dur+ ea* ( #e subsequ5t fiscal ye>s1 ! ,commonweal? gov]nm5t %all make cont9u\s1 sub/antial progress t[>d equaliz+ ! exp5ditures & rev5ues ( ! ,commonweal? gov]nm5t = ^? fiscal ye>s 9 equal annual in/allm5ts1 to ! maximum ext5t practicable4 7iii7 ,! ,commonweal? gov]nm5t %all provide = ! ord]ly liquidation ( ! cumulative fund balance deficit ( ! gov]nm5t1 z evid5c$ by f9ancial /atem5ts prep>$ 9 accordance ) g5]ally accept$ acc\nt+ pr9ciples4 7iv7 ,if funds 9 any acc\nt ( ! ,commonweal? gov]nm5t t are d$icat$ = specific purposes h be5 )drawn f t acc\nt = any o!r purpose1 ! ,commonweal? gov]nm5t %all fully re/ore ! funds to ! acc\nt4 7v7 ,! f9ancial plan & budget %all ensure ! cont9u+ long-t]m f9ancial /ability ( ! ,commonweal? gov]nm5t1 z indicat$ by factors includ+-- 7,i7 access to %ort-t]m & long-t]m capital m>kets2 7,,ii7 ! effici5t managem5t ( ! ,commonweal? gov]nm5t work=ce2 & 7,,iii7 ! effective provision ( s]vices by ! ,commonweal? gov]nm5t4 7,b7 ,application ( s\nd budget>y practices2 assumptions bas$ on curr5t law ,9 meet+ ! /&>ds describ$ 9 subp>agraph 7,a7 ) respect to a f9ancial plan & budget = a fiscal ye>1 ! ,commonweal? gov]nm5t %all-- 7i7 apply s\nd budget>y practices1 includ+-- 7,i7 r$uc+ co/s & o!r exp5ditures2 7,,ii7 improv+ productivity2 7,,iii7 increas+ rev5ues2 or 7,,iv7 any comb9ation ( ^? practices2 & 7ii7 base e/imates ( rev5ues & exp5ditures on ,f$]al law1 z 9 effect at ! "t ( prep>ation ( ! f9ancial plan & budget4 7b7 ,submission1 review1 & approval 7#a7 ,9 g5]al ,n lat] ?an ,febru>y #a ( ea* fiscal ye> prec$+ a fiscal ye> dur+ :i* ! ,commonweal? gov]nm5t is 9 a control p]iod "u section #cbb7;b71 ! ,gov]nor %all submit to ! ,au?ority & ! ,legislative ,assembly a f9ancial plan & budget = t foll[+ fiscal ye>1 z develop$ 9 accordance ) ?is section4 7#b7 ,review by ,au?ority ,on receipt ( a f9ancial plan & budget = a fiscal ye> f ! ,gov]nor "u p>agraph 7#a71 ! ,au?ority-- 7,a7 %all promptly review ! f9ancial plan & budget2 & 7,b7 9 conduct+ ! review1 may reque/ any additional in=mation ! ,au?ority consid]s to be necess>y & appropriate to c>ry out ?is "p4 7#c7 ,action on approval 7,a7 ,c]tification to ,gov]nor 7i7 ,9 g5]al ,if ! ,au?ority det]m9es t ! f9ancial plan & budget = a fiscal ye> submitt$ by ! ,gov]nor "u p>agraph 7#a7 meets ! applicable requirem5ts ( ?is section-- 7,i7 ! ,au?ority %all-- 7aa7 approve ! f9ancial plan & budget2 & 7bb7 submit a notice c]tify+ t approval to-- 7,,aa7 ! ,gov]nor2 7,,bb7 ! ,legislative ,assembly2 7,,cc7 ! ,presid5t2 & 7,,dd7 ,congress2 & 7,,ii7 ! ,gov]nor %all promptly submit ! f9ancial plan & budget to ! ,legislative ,assembly4 7ii7 ,deem$ approval 7,i7 ,9 g5]al ,if ! ,au?ority has n provid$ to ! ,gov]nor1 ! ,legislative ,assembly1 & ,congress a notice c]tify+ approval "u clause 7i77,i77bb7 or a /atem5t ( disapproval "u p>agraph 7#d77;,a77ii7 by ! date t is #cj days aft] ! date on :i* ! ,au?ority receives ! f9ancial plan & budget f ! ,gov]nor "u p>agraph 7#a71 ! ,au?ority %all be deem$ to h-- 7aa7 approv$ ! f9ancial plan & budget2 & 7bb7 submitt$ a notice c]tify+ approval describ$ 9 clause 7i77,i77bb7 to-- 7,,aa7 ! ,gov]nor2 7,,bb7 ! ,legislative ,assembly2 7,,cc7 ! ,presid5t2 & 7,,dd7 ,congress4 7,,ii7 ,explanation ( failure to respond ,if subclause 7,i7 applies ) respect to a f9ancial plan & budget1 ! ,au?ority %all submit to ! ,gov]nor1 ! ,legislative ,assembly1 ! ,presid5t1 & ,congress an explanation = ! failure ( ! ,au?ority to submit a notice c]tify+ approval or a /atem5t ( disapproval dur+ ! #cj-;day p]iod describ$ 9 t subclause4 7,b7 ,adoption by ,legislative ,assembly ,n lat] ?an #cj days aft] ! date ( receipt ( ! f9ancial plan & budget = a fiscal ye> f ! ,gov]nor "u subp>agraph 7,a77i77,,ii71 ! ,legislative ,assembly %all-- 7i7 by ,act1 adopt ! f9ancial plan & budget1 :i* %all s]ve z ! adoption ( ! budget ( ! ,commonweal? gov]nm5t = ! fiscal ye>2 & 7ii7 submit ! f9ancial plan & budget to-- 7,i7 ! ,gov]nor2 & 7,,ii7 ! ,au?ority4 7,c7 ,review ( ,legislative ,assembly f9ancial plan & budget ,on receipt ( ! f9ancial plan & budget = a fiscal ye> f ! ,legislative ,assembly "u subp>agraph 7,b71 & tak+ into acc\nt any items or provisions disapprov$ by ! ,gov]nor or disapprov$ by ! ,gov]nor & re5act$ by ! ,legislative ,assembly1 ! ,au?ority-- 7i7 %all promptly review ! f9ancial plan & budget2 & 7ii7 9 conduct+ ! review1 may reque/ any additional in=mation ! ,au?ority consid]s to be necess>y & appropriate to c>ry out ?is "p4 7,d7 ,results ( ,au?ority review 7i7 ,approval ,if ! ,au?ority det]m9es t ! f9ancial plan & budget = ! fiscal ye> submitt$ by ! ,legislative ,assembly "u subp>agraph 7,b77ii7 meets ! applicable requirem5ts "u ?is section-- 7,i7 ! ,au?ority %all-- 7aa7 approve ! f9ancial plan & budget2 & 7bb7 submit a notice c]tify+ ! approval to-- 7,,aa7 ! ,gov]nor2 7,,bb7 ! ,legislative ,assembly2 7,,cc7 ! ,presid5t2 & 7,,dd7 ,congress2 & 7,,ii7 ! ,legislative ,assembly %all promptly submit ! f9ancial plan & budget to ! ,gov]nor = transmission to ! ,presid5t & ,congress4 7ii7 ,disapproval ,if ! ,au?ority det]m9es t ! f9ancial plan & budget = a fiscal ye> submitt$ by ! ,legislative ,assembly "u subp>agraph 7,b77ii7 does n meet ! applicable requirem5ts "u ?is section1 ! ,au?ority %all-- 7,i7 disapprove ! f9ancial plan & budget2 & 7,,ii7 submit to ! ,gov]nor1 ! ,legislative ,assembly1 ! ,presid5t1 & ,congress a /atem5t conta9+-- 7aa7 ! reasons = ! disapproval2 7bb7 a description ( ! am\nt ( any %ortfall 9 ! budget or f9ancial plan2 & 7cc7 any recomm5dations = revisions to ! budget ! ,au?ority consid]s to be appropriate to ensure t ! budget is consi/5t ) ! f9ancial plan & budget4 7iii7 ,deem$ approval 7,i7 ,9 g5]al ,if ! ,au?ority has n submitt$ to ! ,gov]nor1 ! ,legislative ,assembly1 ! ,presid5t1 & ,congress a notice c]tify+ approval "u clause 7i77,i77bb7 or a /atem5t ( disapproval "u clause 7ii77,,ii7 by ! date t is #ae days aft] ! date on :i* ! ,au?ority receives ! f9ancial plan & budget f ! ,legislative ,assembly "u subp>agraph 7,b77ii71 ! ,au?ority %all be deem$ to h-- 7aa7 approv$ ! f9ancial plan & budget2 & 7bb7 submitt$ a notice c]tify+ approval describ$ 9 clause 7i77,i77bb7 to-- 7,,aa7 ! ,gov]nor2 7,,bb7 ! ,legislative ,assembly2 7,,cc7 ! ,presid5t2 & 7,,dd7 ,congress4 7,,ii7 ,explanation ( failure to respond ,if subclause 7,i7 applies ) respect to a f9ancial plan & budget1 ! ,au?ority %all submit to ! ,gov]nor1 ! ,legislative ,assembly1 ! ,presid5t1 & ,congress an explanation = ! failure ( ! ,au?ority to submit a notice c]tify+ approval or a /atem5t ( disapproval dur+ ! #ae-;day p]iod describ$ 9 t subclause4 7,e7 ,au?ority review ( revis$ f9ancial plan & budget 7i7 ,9 g5]al ,n lat] ?an #ae days aft] ! date ( receipt ( a /atem5t f ! ,au?ority "u subp>agraph 7,d77ii77,,ii71 ! ,legislative ,assembly %all-- 7,i7 promptly1 by ,act1 adopt a revis$ f9ancial plan & budget = ! applicable fiscal ye> t addresses ! reasons = disapproval cit$ 9 ! /atem5t2 & 7,,ii7 submit ! revis$ f9ancial plan & budget to-- 7aa7 ! ,gov]nor2 & 7bb7 ! ,au?ority4 7ii7 ,approval ,if1 aft] review+ ! revis$ f9ancial plan & budget = a fiscal ye> submitt$ by ! ,legislative ,assembly "u clause 7i7 9 accordance ) ! proc$ures describ$ 9 ?is subsection1 ! ,au?ority det]m9es t ! revis$ f9ancial plan & budget meets ! applicable requirem5ts "u ?is section-- 7,i7 ! ,au?ority %all-- 7aa7 approve ! f9ancial plan & budget2 & 7bb7 submit a notice c]tify+ t approval to-- 7,,aa7 ! ,gov]nor2 7,,bb7 ! ,legislative ,assembly2 7,,cc7 ! ,presid5t2 & 7,,dd7 ,congress2 & 7,,ii7 ! ,legislative ,assembly %all promptly submit ! f9ancial plan & budget to ! ,gov]nor = transmission to ! ,presid5t & ,congress4 7iii7 ,disapproval 7,i7 ,9 g5]al ,if1 aft] review+ ! revis$ f9ancial plan & budget = a fiscal ye> submitt$ by ! ,legislative ,assembly "u clause 7i7 9 accordance ) ! proc$ures describ$ 9 ?is p>agraph1 ! ,au?ority det]m9es t ! revis$ f9ancial plan & budget does n meet ! applicable requirem5ts "u ?is section1 ! ,au?ority %all-- 7aa7 disapprove ! f9ancial plan & budget2 7bb7 submit to ! ,gov]nor1 ! ,legislative ,assembly1 ! ,presid5t1 & ,congress a /atem5t conta9+-- 7,,aa7 ! reasons = ! disapproval2 & 7,,bb7 a description ( ! am\nt ( any %ortfall 9 ! budget or f9ancial plan2 & 7cc7 7,,aa7 recomm5d a f9ancial plan & budget = ! ,commonweal? gov]nm5t t meets ! applicable requirem5ts "u ?is section2 & 7,,bb7 submit t f9ancial plan & budget to ! ,gov]nor1 ! ,legislative ,assembly1 ! ,presid5t1 & ,congress4 7,,ii7 ,submission ( reject$ f9ancial plan & budget ,! ,legislative ,assembly %all promptly submit to ! ,gov]nor = transmission to ! ,presid5t & ,congress a revis$ f9ancial plan & budget disapprov$ by ! ,au?ority "u ?is clause4 7iv7 ,deem$ approval 7,i7 ,9 g5]al ,if ! ,au?ority has n provid$ to ! ,gov]nor1 ! ,legislative ,assembly1 & ,congress a notice c]tify+ approval "u clause 7ii77,i77bb7 or a /atem5t ( disapproval "u clause 7iii77,i77bb7 by ! date t is #ae days aft] ! date on :i* ! ,au?ority receives ! revis$ f9ancial plan & budget submitt$ by ! ,legislative ,assembly "u clause 7i71 ! ,au?ority %all be deem$ to h-- 7aa7 approv$ ! f9ancial plan & budget2 & 7bb7 submitt$ a notice c]tify+ approval describ$ 9 clause 7ii77,i77bb7 to-- 7,,aa7 ! ,gov]nor2 7,,bb7 ! ,legislative ,assembly2 7,,cc7 ! ,presid5t2 & 7,,dd7 ,congress4 7,,ii7 ,explanation ( failure to respond ,if subclause 7,i7 applies ) respect to a f9ancial plan & budget1 ! ,au?ority %all submit to ! ,gov]nor1 ! ,legislative ,assembly1 ! ,presid5t1 & ,congress an explanation = ! failure ( ! ,au?ority to submit a notice c]tify+ approval or a /atem5t ( disapproval dur+ ! #ae-;day p]iod describ$ 9 t subclause4 7,f7 ,deadl9e = transmission by au?ority ,not)/&+ any o!r provision ( ?is subsection1 n lat] ?an ,june #ae ( ea* fiscal ye> prec$+ a fiscal ye> t is a control ye>1 ! ,au?ority %all submit to ,congress-- 7i7 z applicable1 a notice c]tify+ ! approval by ! ,au?ority (-- 7,i7 ! initial f9ancial plan & budget ( ! ,legislative ,assembly = t foll[+ fiscal ye> "u subp>agraph 7,d77i72 or 7,,ii7 ! revis$ f9ancial plan & budget ( ! ,legislative ,assembly = t foll[+ fiscal ye> "u subp>agraph 7,e77ii72 or 7ii7 an approv$ & recomm5d$ f9ancial plan & budget ( ! ,au?ority = ! ,commonweal? gov]nm5t = t foll[+ fiscal ye> "u subp>agraph 7,e77iii74 7#d7 ,action on disapproval 7,a7 ,9 g5]al ,if ! ,au?ority det]m9es t ! f9ancial plan & budget = a fiscal ye> submitt$ by ! ,gov]nor "u p>agraph 7#a7 does n meet ! applicable requirem5ts "u ?is section1 ! ,au?ority %all-- 7i7 disapprove ! f9ancial plan & budget2 & 7ii7 submit to ! ,gov]nor & ! ,legislative ,assembly a /atem5t conta9+-- 7,i7 ! reasons = ! disapproval2 7,,ii7 a description ( ! am\nt ( any %ortfall 9 ! budget or f9ancial plan2 & 7,,iii7 any recomm5dations = revisions to ! budget ! ,au?ority consid]s to be appropriate to ensure t ! f9ancial plan & budget meets ! applicable requirem5ts "u ?is section4 7,b7 ,revis$ f9ancial plan & budget 7i7 ,9 g5]al ,n lat] ?an #ae days aft] ! date ( receipt ( a /atem5t f ! ,au?ority "u subp>agraph 7,a77ii71 ! ,gov]nor %all promptly submit to ! ,au?ority & ! ,legislative ,assembly a revis$ f9ancial plan & budget = ! applicable fiscal ye> t addresses ! reasons ( ! ,au?ority = disapproval4 7ii7 ,approval ,if ! ,au?ority det]m9es t ! revis$ f9ancial plan & budget = a fiscal ye> submitt$ by ! ,gov]nor "u clause 7i7 meets ! applicable requirem5ts "u ?is section-- 7,i7 ! ,au?ority %all-- 7aa7 approve ! f9ancial plan & budget2 & 7bb7 submit a notice c]tify+ t approval to-- 7,,aa7 ! ,gov]nor2 7,,bb7 ! ,legislative ,assembly2 7,,cc7 ! ,presid5t2 & 7,,dd7 ,congress2 & 7,,ii7 ! ,gov]nor %all promptly submit ! f9ancial plan & budget to ! ,legislative ,assembly4 7iii7 ,disapproval 7,i7 ,9 g5]al ,if ! ,au?ority det]m9es t ! revis$ f9ancial plan & budget = a fiscal ye> submitt$ by ! ,gov]nor "u clause 7i7 does n meet ! applicable requirem5ts "u ?is section1 ! ,au?ority %all-- 7aa7 disapprove ! f9ancial plan & budget2 7bb7 submit to ! ,gov]nor1 ! ,legislative ,assembly1 ! ,presid5t1 & ,congress a /atem5t conta9+ ! reasons = ! disapproval2 & 7cc7 7,,aa7 recomm5d a f9ancial plan & budget = ! ,commonweal? gov]nm5t t meets ! applicable requirem5ts "u ?is section2 & 7,,bb7 submit ! f9ancial plan & budget to ! ,gov]nor & ! ,legislative ,assembly4 7,,ii7 ,submission ( reject$ f9ancial plan & budget ,! ,gov]nor %all promptly submit to ! ,legislative ,assembly a revis$ f9ancial plan & budget disapprov$ by ! ,au?ority "u ?is clause4 7iv7 ,deem$ approval 7,i7 ,9 g5]al ,if ! ,au?ority has n provid$ to ! ,gov]nor1 ! ,legislative ,assembly1 & ,congress a notice c]tify+ approval "u clause 7ii77,i77bb7 or a /atem5t ( disapproval "u clause 7iii77,i77bb7 by ! date t is #ae days aft] ! date on :i* ! ,au?ority receives ! revis$ f9ancial plan & budget submitt$ by ! ,gov]nor "u clause 7i71 ! ,au?ority %all be deem$ to h-- 7aa7 approv$ ! revis$ f9ancial plan & budget2 & 7bb7 submitt$ a notice c]tify+ approval describ$ 9 clause 7ii77,i77bb7 to-- 7,,aa7 ! ,gov]nor2 7,,bb7 ! ,legislative ,assembly2 7,,cc7 ! ,presid5t2 & 7,,dd7 ,congress4 7,,ii7 ,explanation ( failure to respond ,if subclause 7,i7 applies ) respect to a f9ancial plan & budget1 ! ,au?ority %all submit to ! ,gov]nor1 ! ,legislative ,assembly1 ! ,presid5t1 & ,congress an explanation = ! failure ( ! ,au?ority to submit a notice c]tify+ approval or a /atem5t ( disapproval dur+ ! #ae-;day p]iod describ$ 9 t subclause4 7,c7 ,action by ,legislative ,assembly 7i7 ,9 g5]al ,n lat] ?an #cj days aft] ! date ( receipt ( an approv$ revis$ f9ancial plan & budget ( ! ,gov]nor = a fiscal ye> "u subp>agraph 7,b77ii7 or1 9 ! case ( a f9ancial plan & budget disapprov$ by ! ,au?ority1 ! f9ancial plan & budget recomm5d$ by ! ,au?ority "u subp>agraph 7,b77iii77,i77cc71 ! ,legislative ,assembly %all-- 7,i7 by ,act1 adopt ! f9ancial plan & budget1 :i* %all s]ve z ! adoption ( ! budget ( ! ,commonweal? gov]nm5t = ! fiscal ye>2 & 7,,ii7 submit ! f9ancial plan & budget to-- 7aa7 ! ,gov]nor2 & 7bb7 ! ,au?ority4 7ii7 ,review by ,au?ority ,a f9ancial plan & budget submitt$ by ! ,legislative ,assembly "u clause 7i7 %all be subject to review by ! ,au?ority & revision by ! ,legislative ,assembly 9 ! same mann] z ! f9ancial plan & budget submitt$ by ! ,legislative ,assembly aft] an approv$ prelim9>y f9ancial plan & budget ( ! ,gov]nor "u subp>agraphs 7,c7 ?r\gh 7,f7 ( p>agraph 7#c74 7#e7 ,revisions to f9ancial plan & budget 7,a7 ,action by ,gov]nor ,! ,gov]nor may submit to ! ,au?ority propos$ revisions to ! f9ancial plan & budget = a control ye> at any "t dur+ ! control ye>4 7,b7 ,proc$ure ,except z provid$ 9 subp>agraph 7,c71 ! proc$ures describ$ 9 p>agraphs 7#b71 7#c71 & 7#d7 %all apply ) respect to a propos$ revision to a f9ancial plan & budget 9 ! same mann] z ^? proc$ures apply ) respect to ! orig9al f9ancial plan & budget1 except t ! ref]5ce conta9$ 9 p>agraph 7#c77;,a77ii7 to a #cj-;day p]iod %all be consid]$ to be a #bj-;day p]iod4 7,c7 ,exception = revisions n affect+ appropriations ,to ! ext5t t a propos$ revision to a f9ancial plan & budget adopt$ by ! ,legislative ,assembly pursuant to ?is section does n increase ! am\nt ( sp5d+ ) respect to any acc\nt ( ! ,commonweal? gov]nm5t1 ! revision %all take effect on ! date ( approval by ! ,au?ority ( ! revision1 subject to review by ,congress4 #cbe4 ,review to ensure compliance 7a7 ,legislative ,assembly ,acts 7#a7 ,9 g5]al ,n lat] ?an ,decemb] #ca ( ea* control ye>1 ! ,legislative ,assembly %all submit to ! ,au?ority-- 7,a7 a copy ( ea* ,act t1 dur+ ! control ye>1 0-- 7i7 pass$ by ! ,legislative ,assembly & sign$ by ! ,gov]nor2 7ii7 veto$ by ! ,gov]nor & repass$ by #b_/c ( ! memb]s ( ea* ( ! ,s5ate & ,h\se ( ,repres5tatives ( ! ,legislative ,assembly2 or 7iii7 pass$ by ! ,legislative ,assembly & all[$ to become effective )\t ! signature ( ! ,gov]nor2 & 7,b7 an e/imate ( ! co/s ( c>ry+ out ! ,act4 7#b7 ,prompt review ,on receipt f ! ,legislative ,assembly ( an ,act "u p>agraph 7#a71 ! ,au?ority %all promptly review ! ,act to det]m9e :e!r ! ,act is consi/5t )-- 7,a7 ! applicable f9ancial plan & budget approv$ "u section #cbc or #cbd = ! control ye>2 & 7,b7 ! e/imate ( ! co/s ( c>ry+ out ! ,act "u p>agraph 7#a77;,b74 7#c7 ,actions by ,au?ority 7,a7 ,approval ,except z provid$ 9 subp>agraph 7,c71 if ! ,au?ority det]m9es t an ,act describ$ 9 ?is subsection is consi/5t ) ! applicable f9ancial plan & budget-- 7i7 ! ,au?ority %all submit to ! ,legislative ,assembly a notice ( ! approval2 & 7ii7 ! ,legislative ,assembly %all submit to ,congress a copy ( ! ,act = review4 7,b7 ,f9d+ ( inconsi/5cy ,except z provid$ 9 subp>agraph 7,c71 if ! ,au?ority det]m9es t an ,act describ$ 9 ?is subsection is significantly inconsi/5t ) ! applicable f9ancial plan & budget1 ! ,au?ority %all-- 7i7 notify ! ,legislative ,assembly ( ! f9d+2 7ii7 provide ! ,legislative ,assembly ) an explanation ( ! reasons = ! f9d+2 & 7iii7 to ! ext5t ! ,au?ority consid]s to be appropriate1 provide to ! ,legislative ,assembly recomm5dations = modifications to ! ,act4 7,c7 ,exception = em]g5cies ,subp>agraphs 7,a7 & 7,b7 %all n apply ) respect to any ,act t ! ,legislative ,assembly det]m9es %\ld take effect imm$iately due to an em]g5cy circum/ance4 7#d7 ,effect ( f9d+ ,if ! ,au?ority makes a f9d+ "u p>agraph 7#c77;,b71 ! ,legislative ,assembly may n submit to ,congress ! ,act = review4 7#e7 ,deem$ approval 7,a7 ,9 g5]al ,subject to subp>agraph 7,b71 if ! ,au?ority fails to notify ! ,legislative ,assembly ( an approval or disapproval ( an ,act describ$ 9 ?is subsection by ! date t is #g days aft] ! date on :i* ! ,legislative ,assembly submits ! ,act to ! ,au?ority1 ! ,au?ority %all be deem$ to h approv$ ! ,act 9 accordance ) p>agraph 7#c77;,a74 7,b7 ,ext5sion ,! ,au?ority may elect to ext5d ! deadl9e describ$ 9 subp>agraph 7,a7 to a p]iod ( n long] ?an #ad days1 subject to ! condition t ! ,au?ority %all notify ! ,legislative ,assembly & ! ,gov]nor ( ! election4 7#f7 ,prelim9>y review ( propos$ ,acts 7,a7 ,9 g5]al ,subject to subp>agraph 7,b71 at ! reque/ ( ! ,legislative ,assembly1 ! ,au?ority may conduct a prelim9>y review ( propos$ legislation p5d+ be=e ! ,legislative ,assembly to det]m9e :e!r ! legislation z propos$ w\ld be consi/5t ) ! applicable f9ancial plan & budget approv$ "u section #cbc or #cbd4 7,b7 ,treatm5t ,a prelim9>y review "u subp>agraph 7,a7 %all n be b9d+ on ! ,au?ority 9 review+ any ,act subsequ5tly submitt$ "u ?is subsection4 7b7 ,effect on contracts & leases 7#a7 ,m&atory prior approval 7,a7 ,9 g5]al ,9 ! case ( a contract or lease describ$ 9 subp>agraph 7,b7 t is propos$ to be ent]$ into by ! ,commonweal? gov]nm5t dur+ a control ye>1 ! ,gov]nor 7or o!r appropriate (fic] or ag5t ( ! ,commonweal? gov]nm5t7-- 7i7 %all submit to ! ,au?ority ! propos$ contract or lease = review & approval2 & 7ii7 may n ent] into ! contract or lease unless ! ,au?ority det]m9es t ! propos$ contract or lease is consi/5t ) ! f9ancial plan & budget = ! control ye>4 7,b7 ,contracts & leases describ$ ,a contract or lease ref]r$ to 9 subp>agraph 7,a7 is-- 7i7 a labor contract ent]$ into ?r\gh collective b>ga9+2 or 7ii7 su* o!r type ( contract or lease z ! ,au?ority may specify = purposes ( ?is subp>agraph4 7#b7 ,review aft] execution 7,a7 ,9 g5]al ,9 addition to ! prior approval ( c]ta9 contracts & leases "u p>agraph 7#a71 ! ,au?ority may require ! ,gov]nor 7or o!r appropriate (fic] or ag5t ( ! ,commonweal? gov]nm5t7 to submit to ! ,au?ority-- 7i7 any o!r contract 7includ+ a contract to c>ry out a grant7 or lease ent]$ into by ! ,commonweal? gov]nm5t dur+ a control ye> t is execut$ aft] ! date on :i* ! ,au?ority has approv$ ! f9ancial plan & budget = ! control ye> "u section #cbc or #cbd2 or 7ii7 any proposal ( ! ,commonweal? gov]nm5t to r5ew1 ext5d1 or modify a contract or lease dur+ a control ye> t is made aft] ! date on :i* ! ,au?ority has approv$ t f9ancial plan & budget4 7,b7 ,action by ,au?ority ,! ,au?ority %all review ea* contract or lease submitt$ "u subp>agraph 7,a7 to det]m9e :e!r ! contract or lease is consi/5t ) ! f9ancial plan & budget = ! applicable control ye>4 7,c7 ,action by ,gov]nor ,if ! ,au?ority det]m9es "u subp>agraph 7,b7 t a contract or lease is n consi/5t ) ! applicable f9ancial plan & budget1 to ensure t ! contract or lease w be consi/5t ) ! f9ancial plan & budget1 ! ,gov]nor %all-- 7i7 take su* action pursuant to ! au?ority ( ! ,gov]nor to revise ! contract or lease2 or 7ii7 submit a propos$ revision to ! f9ancial plan & budget 9 accordance ) section #cbc7;b77#e7 or #cbd7;b77#e74 7#c7 ,contracts subject to ,legislative ,assembly approval ,9 ! case ( a contract or lease t is requir$ to be submitt$ to ! ,au?ority "u ?is subsection & is subject to approval by ! ,legislative ,assembly "u ! laws ( ! ,commonweal?1 ! ,gov]nor %all submit ! contract or lease to ! ,au?ority only aft] ! ,legislative ,assembly has approv$ ! contract or lease4 7c7 ,re/rictions on reprogramm+ ( am\nts 7#a7 ,submissions ( reque/s to au?ority ,if ! ,gov]nor submits to ! ,legislative ,assembly a reque/ = ! reprogramm+ ( any am\nts provid$ 9 a budget = a fiscal ye> t occurs dur+ a control ye> aft] ! date on :i* ! budget is adopt$ by ! ,legislative ,assembly-- 7,a7 ! ,gov]nor %all submit ! reque/ to ! ,au?ority2 & 7,b7 ! ,au?ority %all-- 7i7 analyze ! effect ( ! propos$ reprogramm+ on ! f9ancial plan & budget = ! fiscal ye>2 & 7ii7 submit ! analysis to ! ,legislative ,assembly by n lat] ?an #ae days aft] ! date ( receipt ( ! reque/4 7#b7 ,no action p]mitt$ ,! ,legislative ,assembly may n adopt a reprogramm+ dur+ a fiscal ye> t occurs dur+ a control ye>1 & no (fic] or employee ( ! ,commonweal? gov]nm5t may c>ry out any reprogramm+ dur+ su* a ye>1 until ! ,au?ority has provid$ to ! ,legislative ,assembly an analysis ( a reque/ = ! reprogramm+ 9 accordance ) p>agraph 7#a74 #cbf4 ,re/rictions on borr[+ 7a7 ,9 g5]al ,! ,commonweal? gov]nm5t may n borr[ money dur+ a control ye>1 unless ! ,au?ority provides to ! ,gov]nor a c]tification t bo? ! receipt ( funds ?r\gh t borr[+ & ! repaym5t ( obligations incurr$ ?r\gh ! borr[+ are consi/5t ) ! f9ancial plan & budget = ! control ye>4 7b7 ,revisions to f9ancial plan & budget ,if ! ,au?ority det]m9es t a borr[+ propos$ to be c>ri$ out by ! ,commonweal? gov]nm5t "u subsection 7a7 is n consi/5t ) ! f9ancial plan & budget1 ! ,gov]nor may submit to ! ,au?ority a propos$ revision to ! f9ancial plan & budget 9 accordance ) section #cbd7;b77#e7 to ensure t ! borr[+ is consi/5t ) ! revis$ f9ancial plan & budget4 7c7 ,borr[+ describ$ ,?is subsection %all apply ) respect to any borr[+ c>ri$ out by ! ,commonweal? gov]nm5t1 includ+-- 7#a7 borr[+ ?r\gh ! issuance ( bonds2 7#b7 ! ex]cise ( au?ority to obta9 funds f ! ,unit$ ,/ates ,treasury2 or 7#c7 any o!r means4 #cbg4 ,f9d+ ( noncompliance 7a7 ,submission ( reports ,on initiation ( a control p]iod "u section #cbb7;b71 ! ,gov]nor %all submit to ! ,au?ority a report t-- 7#a7 describes ! actual rev5ues obta9$ & exp5ditures made by ! ,commonweal? gov]nm5t dur+ ! prec$+ qu>t]1 z comp>$ to ca% fl[s dur+ t qu>t]2 & 7#b7 comp>es ^? actual rev5ues1 exp5ditures1 & ca% fl[s ) ! mo/ rec5t projections = ^? items4 7b7 ,dem& = additional in=mation ,if ! ,au?ority det]m9es1 bas$ on reports submitt$ by ! ,gov]nor "u subsection 7a71 indep5d5t audits1 or su* o!r in=mation z ! ,au?ority may obta91 t ! rev5ues or exp5ditures ( ! ,commonweal? gov]nm5t dur+ a control ye> are n consi/5t ) ! f9ancial plan & budget = ! ye>1 ! ,au?ority %all require ! ,gov]nor to provide su* additional in=mation z ! ,au?ority det]m9es to be necess>y to expla9 ! inconsi/5cy4 7c7 ,c]tification ( v>iance 7#a7 ,9 g5]al ,aft] requir+ ! ,gov]nor to provide additional in=mation "u subsection 7b71 ! ,au?ority %all c]tify to ! ,legislative ,assembly1 ! ,presid5t1 ! ,secret>y1 & ,congress t ! ,commonweal? gov]nm5t is at v>iance ) ! f9ancial plan & budget1 unless-- 7,a7 ! ,au?ority det]m9es to be reasonable & appropriate1 tak+ into acc\nt ! t]ms ( ! f9ancial plan & budget-- 7i7 an explanation = ! inconsi/5cy bas$ on ! additional in=mation2 or 7ii7 a rem$ial action 7includ+ revis+ ! f9ancial plan & budget pursuant to section #cbd7;b77#e77 implem5t$ by ! ,commonweal? gov]nm5t to correct ! inconsi/5cy2 & 7,b7 ! ,gov]nor agrees to submit ! reports describ$ 9 subsection 7a7 on a mon?ly basis = su* p]iod z ! ,au?ority may require4 7#b7 ,inconsi/5cies attributable to ,acts ( ,congress 7,a7 ,det]m9ation by au?ority ,if ! ,au?ority det]m9es t ! rev5ues or exp5ditures ( ! ,commonweal? gov]nm5t dur+ a control ye> are n consi/5t ) ! f9ancial plan & budget = ! ye> z approv$ by ! ,au?ority "u section #cbd z a result ( ! t]ms & conditions ( ! budget ( ! ,commonweal? gov]nm5t = ! control ye> or z a result ( any law enact$ by ,congress t affects ! ,commonweal?1 ! ,au?ority %all submit to ! ,gov]nor a notification ( ! det]m9ation4 7,b7 ,c]tification ,9 ! case ( an inconsi/5cy describ$ 9 subp>agraph 7,a71 ! ,au?ority %all c]tify to ! ,legislative ,assembly1 ! ,presid5t1 ! ,secret>y1 & ,congress t ! ,commonweal? gov]nm5t is at v>iance ) ! f9ancial plan & budget unless ! ,commonweal? gov]nm5t adopts or implem5ts a rem$ial action 7includ+ revis+ ! f9ancial plan & budget pursuant to section #cbd7;b77#e77 to correct ! inconsi/5cy t ! ,au?ority f9ds reasonable & appropriate1 tak+ into acc\nt ! t]ms ( ! f9ancial plan & budget4 7d7 ,effect ( c]tification ,if ! ,au?ority c]tifies to ! ,secret>y t a v>iance exi/s-- 7#a7 ! ,au?ority may )hold any funds deposit$ 9 an acc\nt ( ! ,au?ority :i* w\ld o!rwise be exp5d$ on behalf ( ! ,commonweal? gov]nm5t2 & 7#b7 ! ,secret>y %all )hold funds o!rwise payable to ! ,commonweal? "u su* ,f$]al programs z ! ,au?ority may specify 7o!r ?an funds d$icat$ to mak+ entitlem5t or b5efit paym5ts to individuals71 9 su* am\nts & 9 accordance ) su* o!r conditions z ! ,au?ority may specify4 #cbh4 ,recomm5dations reg>d+ f9ancial /ability & managem5t responsibility 7a7 ,9 g5]al ,! ,au?ority may at any "t submit recomm5dations to ! ,gov]nor1 ! ,legislative ,assembly1 ! ,presid5t1 & ,congress reg>d+ actions ! ,commonweal? gov]nm5t or ! ,f$]al ,gov]nm5t may take to ensure compliance by ! ,commonweal? gov]nm5t ) a f9ancial plan & budget1 or to o!rwise promote ! f9ancial /ability1 managem5t responsibility1 & s]vice deliv]y effici5cy ( ! ,commonweal? gov]nm5t1 includ+ recomm5dations relat+ to-- 7#a7 ! managem5t ( ! f9ancial affairs ( ! ,commonweal? gov]nm5t1 includ+ ca% =eca/+1 in=mation te*nology1 plac+ controls on exp5ditures = p]sonnel1 r$uc+ b5efit co/s1 re=m+ procurem5t practices1 & plac+ o!r controls on exp5ditures2 7#b7 ! /ructural relation%ip ( dep>tm5ts1 ag5cies1 & indep5d5t ag5cies )9 ! ,commonweal? gov]nm5t2 7#c7 7,a7 ! modification ( exi/+ rev5ue /ructures2 or 7,b7 ! e/abli%m5t ( additional rev5ue /ructures2 7#d7 ! e/abli%m5t ( alt]natives = meet+ obligations to pay = ! p5sions ( =m] ,commonweal? gov]nm5t employees2 7#e7 modifications or transf]s ( ! types ( s]vices t are ! responsibility (1 & are deliv]$ by1 ! ,commonweal? gov]nm5t2 7#f7 modifications ( ! types ( s]vices t are deliv]$ by entities o!r ?an ! ,commonweal? gov]nm5t "u alt]native s]vice deliv]y me*anisms 7includ+ privatization & comm]cialization72 7#g7 ! effects ( ,commonweal? laws & c\rt ord]s on ! op]ations ( ! ,commonweal? gov]nm5t2 7#h7 ! e/abli%m5t ( a p]sonnel sy/em = employees ( ! ,commonweal? gov]nm5t t is bas$ on employee p]=mance /&>ds2 & 7#i7 ! improvem5t ( p]sonnel tra9+ & pr(ici5cy1 ! adju/m5t ( /aff+ levels1 & ! improvem5t ( tra9+ & p]=mance ( managem5t & sup]visory p]sonnel4 7b7 ,response to recomm5dations 7#a7 ,9 g5]al ,9 ! case ( any recomm5dations submitt$ "u subsection 7a7 dur+ a control ye> t are )9 ! au?ority ( ! ,commonweal? gov]nm5t to adopt1 n lat] ?an #ij days aft] ! date ( receipt ( ! recomm5dations1 ! ,gov]nor or ! ,legislative ,assembly 7:i*ev] has ! au?ority to adopt ! recomm5dation7 %all submit to ! ,au?ority1 ! ,presid5t1 & ,congress a notification describ+ :e!r ! ,commonweal? gov]nm5t w adopt ! recomm5dations4 7#b7 ,implem5tation plan requir$ ,if ! ,gov]nor or ! ,legislative ,assembly 7z applicable7 notifies ! ,au?ority & ,congress "u p>agraph 7#a7 t ! ,commonweal? gov]nm5t w adopt a recomm5dation submitt$ "u subsection 7a71 ! ,gov]nor or ! ,legislative ,assembly %all include 9 ! /atem5t a writt5 plan to implem5t ! recomm5dation t includes-- 7,a7 specific p]=mance measures to det]m9e ! ext5t to :i* ! ,commonweal? gov]nm5t has adopt$ ! recomm5dation2 & 7,b7 a s*$ule = audit+ compliance by ! ,commonweal? gov]nm5t ) ! plan4 7#c7 ,recomm5dations n adopt$ ,if ! ,gov]nor or ! ,legislative ,assembly 7z applicable7 notifies ! ,au?ority1 ! ,presid5t1 & ,congress "u p>agraph 7#a7 t ! ,commonweal? gov]nm5t w n adopt a recomm5dation submitt$ "u subsection 7a7 t ! ,commonweal? gov]nm5t has au?ority to adopt1 ! ,gov]nor or ! ,legislative ,assembly %all include 9 ! /atem5t an explanation = ! rejection ( ! recomm5dation4 7c7 ,implem5tation ( reject$ recomm5dations 7#a7 ,9 g5]al ,if ! ,gov]nor or ! ,legislative ,assembly 7z applicable7 notifies ! ,au?ority1 ! ,presid5t1 & ,congress "u subsection 7b77#a7 t ! ,commonweal? gov]nm5t w n adopt a recomm5dation submitt$ "u subsection 7a7 t ! ,commonweal? gov]nm5t has au?ority to adopt1 ! ,au?ority1 by a majority vote ( ! memb]s ( ! ,au?ority1 may take su* action conc]n+ ! recomm5dation z ! ,au?ority det]m9es to be appropriate1 aft] consultation )-- 7,a7 ! ,committee on ,en]gy & ,natural ,res\rces ( ! ,s5ate2 & 7,b7 ! ,committee on ,natural ,res\rces ( ! ,h\se ( ,repres5tatives4 7#b7 ,effective date ,?is subsection %all apply ) respect to recomm5dations ( ! ,au?ority made aft] ! date t is #ahj days aft] ! date ( enactm5t ( ?is ,act4 ,,ii ,issuance ( bonds #cca4 ,au?ority to issue bonds 7a7 ,9 g5]al 7#a7 ,reque/ ( ,gov]nor ,subject to ! requirem5ts ( ?is "p1 ! ,au?ority may at ! reque/ ( ! ,gov]nor & pursuant to an ,act ( ! ,legislative ,assembly1 issue bonds1 notes1 or o!r obligations to borr[ funds = ! use ( ! ,commonweal? gov]nm5t1 9 su* am\nts & 9 su* mann] z ! ,au?ority consid]s appropriate4 7#b7 ,special rule = in/rum5talities ) indep5d5t borr[+ au?ority ,9 ! case ( an ag5cy or in/rum5tality ( ! ,commonweal? gov]nm5t t has ! au?ority to issue bonds1 notes1 or obligations to borr[ funds )\t ! enactm5t ( an ,act ( ! ,legislative ,assembly1 ! ,au?ority may issue bonds1 notes1 or o!r obligations to borr[ funds = ! use or functions ( ! ag5cy or in/rum5tality at ! reque/ ( ! head ( ! ag5cy or in/rum5tality4 7b7 ,deposit ( funds obta9$ ?r\gh borr[+ ) au?ority 7#a7 ,9 g5]al ,any am\nts obta9$ by ! ,commonweal? gov]nm5t ?r\gh borr[+ by ! ,au?ority pursuant to ?is "p %all be deposit$ 9 an escr[ acc\nt held by ! ,au?ority4 7#b7 ,allocation ,! ,au?ority %all make available to ! ,commonweal? gov]nm5t funds f ! escr[ acc\nt 9 su* am\nts & at su* times z ! ,au?ority consid]s appropriate1 consi/5t ) ! specifi$ purposes ( ! funds & ! applicable f9ancial plan & budget4 7c7 ,uses ( funds obta9$ ?r\gh bonds ,any am\nts obta9$ ?r\gh ! issuance ( bonds1 notes1 or o!r obligations pursuant to ?is "p may be us$ =-- 7#a7 any purpose 7consi/5t ) ! applicable f9ancial plan & budget7 "u "p ,i = :i* ! ,commonweal? gov]nm5t may use borr[$ funds2 & 7#b7 any o!r purpose t ! ,au?ority consid]s appropriate4 #ccb4 ,pl$ge ( security int]e/ 9 rev5ues ( ,commonweal? gov]nm5t 7a7 ,9 g5]al ,! ,au?ority may pl$ge or grant a security int]e/ 9 rev5ues to individuals or entities pur*as+ bonds1 notes1 or o!r obligations issu$ pursuant to ?is "p4 7b7 ,d$ication ( rev5ue /ream f ,commonweal? gov]nm5t ,! ,au?ority %all require ! ,gov]nor-- 7#a7 to pl$ge or direct to ! ,au?ority any taxes or o!r rev5ues o!rwise payable to ! ,commonweal? gov]nm5t t are n o!rwise pl$g$ or committ$1 includ+ paym5ts f ! ,f$]al ,gov]nm5t1 = purposes ( secur+ repaym5t ( bonds1 notes1 or o!r obligations issu$ "u ?is "p2 & 7#b7 to transf] to ! ,au?ority ! proce$s ( any tax levi$ = purposes ( secur+ any bonds1 notes1 or o!r obligations issu$ "u ?is "p imm$iately on collection ( ! proce$s4 #ccc4 ,e/abli%m5t ( debt s]vice res]ve fund 7a7 ,9 g5]al ,z a condition = ! issuance ( bonds1 notes1 or o!r obligations pursuant to ?is "p1 ! ,au?ority %all e/abli% a debt s]vice res]ve fund1 :i* %all be a tru/ fund held = ! b5efit & security ( ! obligees ( ! ,au?ority ^: bonds1 notes1 or o!r obligations are secur$ by ! debt s]vice res]ve fund1 consi/+ ( su* funds z ! ,au?ority may make available = ! debt s]vice res]ve fund4 7b7 ,requirem5ts 7#a7 ,uses ( funds ,am\nts 9 a debt s]vice res]ve fund e/abli%$ "u subsection 7a7 may be us$ only =-- 7,a7 ! paym5t ( ! pr9cipal ( bonds secur$ 9 :ole or 9 "p by ! debt s]vice res]ve fund2 7,b7 ! pur*ase or r$emption ( ! bonds2 7,c7 ! paym5t ( int]e/ on ! bonds2 or 7,d7 ! paym5t ( any r$emption premium requir$ to be paid :5 ! bonds & notes are r$eem$ prior to maturity4 7#b7 ,re/rictions on )drawals 7,a7 ,9 g5]al ,!re may n be )drawn f ! debt s]vice res]ve fund an am\nt t w\ld r$uce ! am\nt ( ! debt s]vice res]ve fund to less ?an ! m9imum res]ve fund requirem5t e/abli%$ = ! debt s]vice res]ve fund 9 ! resolution ( ! ,au?ority e/abli%+ ! fund1 except = )drawals =-- 7i7 ! purpose ( mak+ paym5ts ( pr9cipal1 int]e/1 r$emption premiums1 & s9k+ fund paym5ts1 if any1 ) respect to ! bonds = ! paym5t ( :i* o!r am\nts ( ! ,au?ority are n available2 & 7ii7 ! purpose ( fund+ ! op]ations ( ! ,au?ority = a fiscal ye> 79 su* am\nts & "u su* conditions z are e/abli%$ "u ! budget ( ! ,au?ority = ! fiscal ye> "u section #caf7;a774 7,b7 ,use ( excess funds ,no?+ 9 subp>agraph 7,a7 prohibits ! ,au?ority f transf]r+ to o!r funds or acc\nts ( ! ,au?ority any income or int]e/ e>n$ by1 or increm5ts to1 ! debt s]vice res]ve fund due to ! inve/m5t ( funds 9 ! debt s]vice res]ve fund 7to ! ext5t ! transf] does n r$uce ! am\nt ( ! debt s]vice res]ve fund bel[ ! m9imum res]ve fund requirem5t e/abli%$ = ! debt s]vice res]ve fund7 = su* purposes z ! ,au?ority consid]s to be appropriate to promote ! f9ancial /ability & managem5t effici5cy ( ! ,commonweal? gov]nm5t4 #ccd4 ,o!r requirem5ts = issuance ( bonds ,! ,au?ority may n issue bonds1 notes1 or o!r obligations pursuant to ?is "p t are secur$ 9 :ole or 9 "p by a debt s]vice res]ve fund e/abli%$ "u section #ccc if issuance ( ! bonds w\ld cause ! am\nt 9 ! debt s]vice res]ve fund to fall bel[ ! m9imum res]ve requirem5t = ! debt s]vice res]ve fund1 unless ! ,au?ority1 on issuance ( ! bonds1 deposits 9 ! debt s]vice res]ve fund an am\nt 7f ! proce$s ( ! bonds to be issu$ or f o!r s\rces7 t1 :5 add$ to ! am\nt already 9 ! debt s]vice res]ve fund1 w\ld cause ! total am\nt 9 ! debt s]vice res]ve fund to equal or exce$ ! m9imum res]ve fund requirem5t e/abli%$ by ! ,au?ority on ! date ( ! e/abli%m5t ( ! debt s]vice res]ve fund4 #cce4 ,no full fai? & cr$it ( ! ,unit$ ,/ates 7a7 ,9 g5]al ,! full fai? & cr$it ( ! ,unit$ ,/ates is n pl$g$ = ! paym5t ( any pr9cipal ( or int]e/ on any bond1 note1 or o!r obligation issu$ by ! ,au?ority pursuant to ?is "p4 7b7 ,responsibility or liability ( ! ,unit$ ,/ates ,! ,unit$ ,/ates is n responsible or liable = ! paym5t ( any pr9cipal ( or int]e/ on any bond1 note1 or o!r obligation issu$ by ! ,au?ority pursuant to ?is "p4 ,,iii ,o!r duties ( au?ority #cda4 ,duties ( ,au?ority dur+ ye> o!r ?an control ye> 7a7 ,9 g5]al ,dur+ ! p]iod beg9n+ on ! t]m9ation ( a control p]iod "u subsection 7a77#c7 or 7b77#c7 ( section #cbb & end+ ) ! susp5sion ( activities ( ! ,au?ority "u section #cag1 ! ,au?ority %all-- 7#a7 review ! budgets ( ! ,commonweal? gov]nm5t adopt$ by ! ,legislative ,assembly = ea* fiscal ye> occurr+ dur+ ! p]iod2 7#b7 at su* "t z ! ,au?ority consid]s appropriate prep>e & submit to ! ,gov]nor1 ! ,legislative ,assembly1 ! ,presid5t1 & ,congress a report analyz+ ! budget2 7#c7 7,a7 monitor ! f9ancial /atus ( ! ,commonweal? gov]nm5t or a public corporation2 & 7,b7 if ! ,au?ority det]m9es t a risk to ! f9ancial /atus ( ! ,commonweal? gov]nm5t or a public corporation exi/s & t a control p]iod ne$s to be implem5t$ ) respect to ! ,commonweal? gov]nm5t or a public corporation 9 accordance ) section #cbb1 submit to ! ,gov]nor1 ! ,legislative ,assembly1 ! ,presid5t1 & ,congress a report describ+ ! det]m9ation2 & 7#d7 c>ry out activities "u "p ,,ii ) respect to bonds1 notes1 or o!r obligations ( ! ,au?ority out/&+ dur+ ! p]iod4 7b7 ,requir+ ,gov]nor ,to submit budgets to au?ority ,) respect to ! budget = ea* fiscal ye> dur+ ! p]iod describ$ 9 subsection 7a71 on ! date on :i* ! ,gov]nor submits ! budget ( ! ,commonweal? gov]nm5t adopt$ by ! ,legislative ,assembly to ! ,presid5t 9 accordance ) ?is title1 ! ,gov]nor %all transmit ! budget to ! ,au?ority4 #cdb4 ,g5]al assi/ance 9 a*iev+ f9ancial /ability & managem5t effici5cy ,9 addition to any o!r actions describ$ 9 ?is subtitle1 ! ,au?ority may und]take coop]ative ef=ts to assi/ ! ,commonweal? gov]nm5t 9 a*iev+ f9ancial /ability & managem5t effici5cy1 includ+-- 7#a7 assi/+ ! ,commonweal? gov]nm5t 9 avoid+ defaults1 elim9at+ & liquidat+ deficits1 ma9ta9+ s\nd budget>y practices1 & avoid+ int]ruptions 9 ! deliv]y ( s]vices2 7#b7 assi/+ ! ,commonweal? gov]nm5t 9 improv+-- 7,a7 ! deliv]y ( gov]nm5t s]vices2 7,b7 ! tra9+ & effectiv5ess ( p]sonnel ( ! ,commonweal? gov]nm5t2 & 7,c7 ! effici5cy ( managem5t & sup]vision2 & 7#c7 mak+ recomm5dations to ! ,presid5t = submission to ,congress on *anges to ?is title or o!r ,f$]al laws or o!r actions ( ! ,f$]al ,gov]nm5t t w\ld assi/ ! ,commonweal? gov]nm5t 9 comply+ ) an approv$ f9ancial plan & budget4 #cdc4 ,obta9+ reports ,! ,au?ority may require ! ,gov]nor1 ! ,legislative ,assembly1 & ! ,inspector ,g5]al ( ,pu]to ,rico to prep>e & submit any reports t ! ,au?ority consid]s appropriate to assi/ ! ,au?ority 9 c>ry+ out ! responsibilities ( ! ,au?ority "u ?is subtitle1 includ+ submitt+ copies ( any reports reg>d+ rev5ues1 exp5ditures1 budgets1 co/s1 plans1 op]ations1 e/imates1 & o!r f9ancial or budget>y matt]s ( ! ,commonweal? gov]nm5t4 #cdd4 ,reports & comm5ts 7a7 ,annual reports to congress ,n lat] ?an #cj days aft] ! la/ day ( ea* fiscal ye> t is a control ye>1 ! ,au?ority %all submit to ,congress a report t describes-- 7#a7 ! progress made by ! ,commonweal? gov]nm5t & public corporations 9 meet+ ! objectives ( ?is title dur+ ! fiscal ye>2 7#b7 ! assi/ance provid$ by ! ,au?ority to ! ,commonweal? gov]nm5t & public corporations 9 meet+ ! purposes ( ?is title = ! fiscal ye>2 & 7#c7 any o!r activities ( ! ,au?ority dur+ ! fiscal ye>4 7b7 ,review & analysis ( p]=mance & f9ancial acc\ntability reports ,! ,au?ority %all-- 7#a7 review ea* report prep>$ & submitt$ by ! ,gov]nor "u ?is title2 & 7#b7 submit to ,congress a report t analyzes ! complet5ess & accuracy ( ea* report4 7c7 ,comm5ts reg>d+ activities ( ,commonweal? gov]nm5t ,at any "t dur+ a control ye>1 ! ,au?ority may submit to ,congress a report t describes any action tak5 by ! ,commonweal? gov]nm5t 7or any failure to act by ! ,commonweal? gov]nm5t7 t ! ,au?ority det]m9es w\ld-- 7#a7 adv]sely affect ! ability ( ! ,commonweal? gov]nm5t to comply ) an approv$ f9ancial plan & budget2 or 7#b7 h a significant adv]se impact on ! be/ int]e/s ( ! ,commonweal?4 7d7 ,reports on effect ( f$]al laws on ,commonweal? gov]nm5t ,at any "t dur+ any ye>1 ! ,au?ority may submit to ! ,gov]nor1 ! ,legislative ,assembly1 ! ,presid5t1 & ,congress a report t describes-- 7#a7 ! effect ( laws enact$ by ,congress on ! f9ancial plan & budget = ! ye>2 & 7#b7 ! f9ancial /ability & managem5t effici5cy ( ! ,commonweal? gov]nm5t 9 g5]al4 7e7 ,mak+ reports publicly available ,! ,au?ority %all make any report submitt$ "u ?is section available to ! public1 except to ! ext5t t ! ,au?ority det]m9es t ! report conta9s confid5tial mat]ial4 ,c ,*ief ,f9ancial ,(fic] #cea4 ,e/abli%m5t ( (fice 7a7 ,9 g5]al ,!re is e/abli%$ )9 ! executive bran* ( ! ,commonweal? gov]nm5t an ,(fice ( ! ,*ief ,f9ancial ,(fic] ( ,pu]to ,rico1 :i* %all be head$ by ! ,*ief ,f9ancial ,(fic] ( ,pu]to ,rico4 7b7 ,transf] ( ,gov]nm5t ,developm5t ,bank functions & p]sonnel ,effective ) ! appo9tm5t ( ! fir/ ,*ief ,f9ancial ,(fic] "u section #ceb1 ! functions & p]sonnel ( ! ,gov]nm5t ,developm5t ,bank are transf]r$ to ! ,(fice4 7c7 ,presid5t ( ,gov]nm5t ,developm5t ,bank ,) respect to ! ,gov]nm5t ,developm5t ,bank-- 7#a7 ! ,*ief ,f9ancial ,(fic] %all appo9t ! ,presid5t ( ! ,gov]nm5t ,developm5t ,bank1 subject to ! approval ( ! ,gov]nor2 & 7#b7 ! ,*ief ,f9ancial ,(fic] may remove ! ,presid5t ( ! ,gov]nm5t ,developm5t ,bank = cause1 aft] consultation ) ! ,gov]nor4 #ceb4 ,appo9tm5t2 removal 7a7 ,appo9tm5t 7#a7 ,control ye> 7,a7 ,9 g5]al ,dur+ a control ye> initiat$ "u section #cbb7;b71 ! ,*ief ,f9ancial ,(fic] %all be appo9t$ by ! ,gov]nor 9 accordance ) ?is p>agraph4 7,b7 ,recomm5dations ,prior to ! appo9tm5t ( ! ,*ief ,f9ancial ,(fic]1 ! ,au?ority may submit recomm5dations = ! appo9tm5t to ! ,gov]nor4 7,c7 ,nom9ation ,9 consultation ) ! ,au?ority & ! ,legislative ,assembly1 ! ,gov]nor %all nom9ate an individual = appo9tm5t & notify ! ,legislative ,assembly ( ! nom9ation4 7,d7 ,notification ,aft] ! expiration ( ! #g-;day p]iod beg9n+ on ! date on :i* ! ,gov]nor notifies ! ,legislative ,assembly ( ! nom9ation "u subp>agraph 7,b71 ! ,gov]nor %all notify ! ,au?ority ( ! nom9ation4 7,e7 ,effectiv5ess ,! nom9ation %all be effective subject to approval by a majority vote ( ! ,au?ority4 7#b7 ,o!r ye>s 7,a7 ,9 g5]al ,dur+ a ye> o!r ?an a control ye> initiat$ "u section #cbb7;b71 ! ,*ief ,f9ancial ,(fic] %all be appo9t$ by ! ,gov]nor ) ! advice & cons5t ( ! ,legislative ,assembly4 7,b7 ,recomm5dations ,prior to appo9tm5t "u subp>agraph 7,a71 ! ,au?ority may submit recomm5dations = ! appo9tm5t4 7b7 ,removal 7#a7 ,control ye> ,dur+ a control ye> initiat$ "u section #cbb7;b71 ! ,*ief ,f9ancial ,(fic] may be remov$ = cause by ! ,au?ority or by ! ,gov]nor ) ! approval ( ! ,au?ority4 7#b7 ,o!r ye>s ,dur+ a ye> o!r ?an a control ye> initiat$ "u section #cbb7;b71 ! ,*ief ,f9ancial ,(fic] %all s]ve at ! pleasure ( ! ,gov]nor1 except t ! ,*ief ,f9ancial ,(fic] may only be remov$ = cause4 7c7 ,sal>y ,! ,*ief ,f9ancial ,(fic] %all be paid at an annual rate det]m9$ by ! ,gov]nor1 except t ! rate may n exce$ ! rate ( basic pay payable = level ,,iv ( ! ,executive ,s*$ule1 z describ$ 9 section #ecae ( title #e1 ,unit$ ,/ates ,code4 #cec4 ,functions ( ,*ief ,f9ancial ,(fic] 7a7 ,functions dur+ control ye> ,dur+ a control ye> initiat$ "u section #cbb7;b71 ! ,*ief ,f9ancial ,(fic] %all h ! foll[+ duties3 7#a7 ,prep>+ ! f9ancial plan & budget = ! use ( ! ,gov]nor4 7#b7 ,prep>+ ! budgets ( ! ,commonweal? = ! ye> = ! use ( ! ,gov]nor4 7#c7 ,ensur+ t all f9ancial in=mation pres5t$ by ! ,gov]nor is pres5t$ 9 a mann] consi/5t ) applicable law4 7#d7 ,implem5t+ appropriate proc$ures & in/itut+ su* programs1 sy/ems1 & p]sonnel policies )9 ! au?ority ( ! ,*ief ,f9ancial ,(fic]1 to ensure t budget1 acc\nt+1 & p]sonnel control sy/ems & /ructures are syn*roniz$ = budget+ & control purposes on a cont9u+ basis4 7#e7 ,) ! approval ( ! ,au?ority1 prep>+ & submitt+ to ! ,gov]nor & ! ,legislative ,assembly-- 7,a7 annual e/imates ( all rev5ues ( ! ,commonweal? gov]nm5t 7)\t reg>d to ! s\rce ( ! rev5ues71 includ+ propos$ rev5ues1 :i* %all be b9d+ on ! ,gov]nor & ! ,legislative ,assembly = purposes ( prep>+ & submitt+ ! budget ( ! ,commonweal? gov]nm5t = ! ye>1 except t ! ,gov]nor & ! ,legislative ,assembly may prep>e ! budget bas$ on e/imates ( rev5ues t are l[] ?an ^? prep>$ by ! ,*ief ,f9ancial ,(fic]2 & 7,b7 qu>t]ly re-e/imates ( ! rev5ues ( ! ,commonweal? gov]nm5t dur+ ! ye>4 7#f7 ,sup]vis+ & assum+ responsibility = f9ancial transactions to ensure-- 7,a7 adequate control ( rev5ues & res\rces2 & 7,b7 t appropriations are n exce$$4 7#g7 ,ma9ta9+ sy/ems ( acc\nt+ & int]nal control design$ to provide-- 7,a7 full disclosure ( ! f9ancial impact ( ! activities ( ! ,commonweal? gov]nm5t2 7,b7 adequate f9ancial in=mation ne$$ by ! ,commonweal? gov]nm5t = managem5t purposes2 7,c7 effective control ov]1 & acc\ntability =1 all funds1 prop]ty1 & o!r assets ( ! ,commonweal? gov]nm5t2 & 7,d7 reliable acc\nt+ results to s]ve z ! basis = prep>+ & support+ ag5cy budget reque/s & controll+ ! execution ( ! budget4 7#h7 ,submitt+ to ! ,legislative ,assembly a f9ancial /atem5t ( ! ,commonweal? gov]nm5t1 conta9+ su* details & at su* times z ! ,legislative ,assembly may specify4 7#i7 ,sup]vis+ & assum+ responsibility = ! levy+ & collection ( all taxes1 special assessm5ts1 lic5s+ fees1 & o!r rev5ues ( ! ,commonweal? gov]nm5t 7z may be requir$ by law71 & receiv+ all am\nts paid to ! ,commonweal? gov]nm5t f any s\rce 7includ+ ! ,au?ority74 7#aj7 ,ma9ta9+ cu/ody ( all public funds belong+ to or "u ! control ( ! ,commonweal? gov]nm5t 7or any dep>tm5t or ag5cy ( ! ,commonweal? gov]nm5t71 & deposit+ all am\nts paid 9 su* depositories & "u su* t]ms & conditions z may be designat$ by ! ,legislative ,assembly or ! ,au?ority4 7#aa7 7,a7 ,ma9ta9+ cu/ody ( all inve/m5t & inve/$ funds ( ! ,commonweal? gov]nm5t or 9 possession ( ! ,commonweal? gov]nm5t 9 a fiduci>y capacity4 7,b7 ,ma9ta9+ ! safekeep+ ( all bonds & notes ( ! ,commonweal? gov]nm5t & ! receipt & deliv]y ( ,commonweal? gov]nm5t bonds & notes = transf]1 regi/ration1 or ex*ange4 7#ab7 7,a7 ,apportion+ ! total ( all appropriations & funds made available dur+ ! ye> = obligation s z to prev5t obligation or exp5diture 9 a mann] t w\ld result 9 a defici5cy or a ne$ = supplem5tal appropriations dur+ ! ye>4 7,b7 ,) respect to appropriations & funds available = an indef9ite p]iod & all au?orizations to create obligations by contract 9 advance ( appropriations1 apportion+ ! total ( ^? appropriations1 funds1 or au?orizations 9 ! mo/ effective & economical mann]4 7#ac7 ,c]tify+ all contracts 7:e!r directly or ?r\gh delegation7 prior to execution z to ! availability ( funds to meet ! obligations expect$ to be incurr$ by ! ,commonweal? gov]nm5t "u ! contracts dur+ ! ye>4 7#ad7 ,prescrib+ ! =ms ( receipts1 v\*]s1 bills1 & claims to be us$ by all ag5cies1 (fices1 & in/rum5talities ( ! ,commonweal? gov]nm5t4 7#ae7 ,c]tify+ & approv+ prior to paym5t all bills1 invoices1 payrolls1 & o!r evid5ces ( claims1 dem&s1 or *>ges aga9/ ! ,commonweal? gov]nm5t1 & det]m9+ ! regul>ity1 legality1 & correctness ( ^? bills1 invoices1 payrolls1 claims1 dem&s1 or *>ges4 7#af7 ,9 coord9ation ) ! ,inspector ,g5]al ( ,pu]to ,rico1 p]=m+ int]nal audits ( acc\nts & op]ations & records ( ! ,commonweal? gov]nm5t1 includ+ ! exam9ation ( any acc\nts or records ( f9ancial transactions1 giv+ due consid]ation to ! effectiv5ess ( acc\nt+ sy/ems1 int]nal control1 & relat$ adm9i/rative practices ( ! dep>tm5ts & ag5cies ( ! ,commonweal? gov]nm5t4 7b7 ,functions dur+ all ye>s ,at all times1 ! ,*ief ,f9ancial ,(fic] %all h ! foll[+ duties3 7#a7 ,adm9i/]+ all borr[+ programs ( ! ,commonweal? gov]nm5t = ! issuance ( long-t]m & %ort-t]m indebt$ness4 7#b7 ,adm9i/]+ ! ca% managem5t program ( ! ,commonweal? gov]nm5t1 includ+ ! inve/m5t ( surplus funds 9 gov]nm5tal & nongov]nm5tal int]e/-be>+ securities & acc\nts4 7#c7 ,adm9i/]+ ! c5traliz$ ,commonweal? gov]nm5t payroll & retirem5t sy/ems4 7#d7 ,gov]n+ ! acc\nt+ policies & sy/ems applicable to ! ,commonweal? gov]nm5t4 7#e7 ,prep>+ appropriate annual1 qu>t]ly1 & mon?ly f9ancial reports ( ! acc\nt+ & f9ancial op]ations ( ! ,commonweal? gov]nm5t4 7#f7 ,n lat] ?an #abj days aft] ! end ( ea* fiscal ye>1 prep>+ ! complete f9ancial /atem5t & report on ! activities ( ! ,commonweal? gov]nm5t = ! end+ fiscal ye>1 = ! use ( ! ,gov]nor4 7c7 ,reports 7#a7 ,9 g5]al ,at all times1 ! ,*ief ,f9ancial ,(fic] %all be responsible = report+ rev5ues receiv$ by ! ,commonweal? gov]nm5t1 includ+ prep>+1 n lat] ?an #fj days aft] ! la/ day ( ! applicable qu>t] or ye>1 qu>t]ly & annual reports conc]n+ ! ca% position ( ! ,commonweal? gov]nm5t4 7#b7 ,requirem5ts ,reports describ$ 9 p>agraph 7#a7 %all include ! foll[+3 7,a7 7i7 ,comp>ative reports ( rev5ue & o!r receipts by s\rce1 includ+ tax1 nontax1 & ,f$]al rev5ues1 grants & reimbursem5ts1 capital program loans1 & advances4 7ii7 ,ea* s\rce %all be brok5 d[n into specific compon5ts4 7,b7 7i7 ,/atem5ts ( ! ca% fl[ ( ! ,commonweal? gov]nm5t = ! prec$+ qu>t] or ye>1 includ+ receipts1 disbursem5ts1 net *anges 9 ca% inclusive ( ! beg9n+ balance1 ca% & inve/m5t1 & ! end+ balance1 inclusive ( ca% & inve/m5t4 7ii7 ,/atem5ts "u clause 7i7 %all reflect ! actual1 plann$1 bett]1 or worse doll> am\nts & ! p]c5tage *ange ) respect to ! curr5t qu>t]1 ye>-to-date1 & fiscal ye>4 7,c7 ,qu>t]ly ca% fl[ =eca/ = ! qu>t] or ye> involv$1 reflect+ receipts1 disbursem5ts1 net *ange 9 ca% inclusive ( ! beg9n+ balance1 ca% & inve/m5t1 & ! end+ balance1 inclusive ( ca% & inve/m5t ) respect to ! actual doll> am\nts = ! qu>t] or ye>1 & project$ doll> am\nts = ea* ( ! #c succe$+ qu>t]s4 7,d7 ,mon?ly reports reflect+ a detail$ summ>y analysis ( all ,commonweal? gov]nm5t inve/m5ts1 includ+-- 7i7 ! total ( long-t]m & %ort-t]m inve/m5ts2 7ii7 a detail$ summ>y analysis ( inve/m5ts by type & am\nt1 includ+ pur*ases1 sales 7maturities71 & int]e/2 7iii7 an analysis ( inve/m5t portfolio mix by type & am\nt1 includ+ liquidity1 quality1 & risk ( ea* security1 & simil> in=mation2 7iv7 an analysis ( inve/m5t /rategy1 includ+-- 7,i7 ne>-t]m /rategic plans & projects ( inve/m5t activity2 7,,ii7 =eca/s ( future inve/m5t /rategies bas$ on anticipat$ m>ket conditions2 & 7,,iii7 simil> in=mation2 & 7v7 an analysis ( ca% utilization1 includ+-- 7,i7 comp>isons ( budget$ p]c5tages ( total ca% to be inve/$ ) actual p]c5tages ( ca% inve/$ & ! doll> am\nts2 7,,ii7 comp>isons ( ! next return on inve/$ ca% express$ 9 p]c5tages 7yield7 ) comp>able m>ket indicators & e/abli%$ ,commonweal? gov]nm5t yield objectives2 & 7,,iii7 comp>isons ( e/imat$ doll> return aga9/ actual doll> yield4 7,e7 7i7 ,mon?ly reports reflect+ a detail$ summ>y analysis ( long-t]m & %ort-t]m borr[+s inclusive ( debt 9 ! curr5t fiscal ye> & ! am\nt ( debt = ea* succe$+ fiscal ye>1 n to exce$ #e ye>s4 7ii7 ,all reports describ$ 9 clause 7i7 %all reflect-- 7,i7 ! am\nt ( debt out/&+ by type ( in/rum5t2 7,,ii7 ! am\nt ( au?oriz$ & unissu$ debt1 includ+ availability ( %ort-t]m l9es ( cr$it1 ,unit$ ,/ates ,treasury borr[+s1 & simil> in=mation2 7,,iii7 a maturity s*$ule ( ! debt2 7,,iv7 ! rate ( int]e/ payable on ! debt2 & 7,v7 ! am\nt ( debt s]vice requirem5ts & relat$ debt s]vice res]ves4 ,d ,effect #cfa4 ,effect ,no?+ 9 ?is title-- 7#a7 relieves any obligations exi/+ z ( ! date ( enactm5t ( ?is ,act ( ! ,commonweal? gov]nm5t to repay any individual or entity f :om ! ,commonweal? gov]nm5t has borr[$ funds1 :e!r ?r\gh ! issuance ( bonds or o!rwise2 7#b7 limits ! au?ority ( ,congress to ex]cise au?ority ov] ! ,commonweal? pursuant to article ,,iv1 section #c1 clause #b ( ! ,con/itution ( ! ,unit$ ,/ates2 or 7#c7 impairs ! "r ( resid5ts ( ! ,commonweal? to express ! pref]5ce ( ! resid5ts reg>d+ :e!r-- 7,a7 to ma9ta9 ! t]ritorial /atus ( ! ,commonweal? 9 exi/5ce z ( ! date ( enactm5t ( ?is ,act2 or 7,b7 to e/abli% a p]man5t nont]ritorial /atus ) ! ,unit$ ,/ates4 #cfb4 ,preemption ,?is title preempts all ,f$]al1 ,/ate1 & local laws relat+ to ! ,commonweal?1 any public corporation1 or any process = e/abli%+ or review+ rates1 fees1 taxes1 or o!r *>ges4 ,,iv ,additional reports & /udies #dja4 ,report on exclusion ( t]ritories f ex*anges 7a7 ,9 g5]al ,n lat] ?an ,febru>y #a1 #bjag1 ! ,secret>y ( ,heal? & ,human ,s]vices1 9 consultation ) ! ,jo9t ,committee on ,taxation1 %all submit to ,congress a report t describes ! impact on ea* t]ritory ( ! exclusion ( su* t]ritories f ! provisions ( "p #b ( subtitle ,d ( title ,i ( ! ,pati5t ,protection & ,af=dable ,c>e ,act 7#db ,u4,s4,c4 #ahjca et seq474 7b7 ,in=mation 9 report ,! report submitt$ "u subsection 7a7 %all include ! foll[+3 7#a7 ,) respect to heal? insurance cov]age1 an e/imate ( ! total numb] ( un9sur$ & und]9sur$ individuals resid+ 9 ea* t]ritory4 7#b7 ,a description ( ! numb] ( heal? insurance issu]s 9 ea* t]ritory & ! heal? insurance plans (f]$ by su* issu]s (f]4 7#c7 ,an e/imate ( ! am\nt ( ,f$]al income taxes t are curr5tly paid 9 ea* t]ritory & an e/imate ( ! am\nt t ^? taxes w\ld be1 9 aggregate p] t]ritory1 if ! ,f$]al income tax sy/em appli$ to ! t]ritory4 7#d7 ,an e/imate ( ! ,f$]al income taxes t w\ld be paid1 9 ! aggregate p] t]ritory1 if individuals resid+ 9 ea* t]ritory paid ! av]age p] capita ,f$]al income tax %>e devot$ to ,f$]al heal? fund+ t is paid by resid5ts 9 ! #ej ,/ates & ! ,di/rict ( ,columbia4 #djb4 ,/udy ( ,pu]to ,rico public p5sion debt ,n lat] ?an #f mon?s aft] ! e/abli%m5t ( ! ,pu]to ,rico ,f9ancial ,responsibility & ,managem5t ,assi/ance ,au?ority "u title ,,iii ( ?is ,act1 ! ,jo9t ,bo>d = ! ,enrollm5t ( ,actu>ies e/abli%$ "u section #cjda ( ! ,employee ,retirem5t ,income ,security ,act ( #aigd 7#bi ,u4,s4,c4 #abda7 %all report to su* ,au?ority & ! ,(fice ( ,dome/ic ,f9ance ( ! ,dep>tm5t ( ! ,treasury on ! foll[+ ) respect to ! ,pu]to ,rico public p5sion plans3 7#a7 ,recomm5dations on actions t w\ld be necess>y to ensure t su* plans c be su/a9ably ma9ta9$ & fund$ by ! gov]nm5t ( ,pu]to ,rico = ! next #bj ye>s4 7#b7 ,! feasibility ( an assumption by ! ,dep>tm5t ( ! ,treasury ( ! assets & unfund$ liabilities ( su* plans1 individually or collectively1 9 a mann] sub/antially simil> to ! actions tak5 ) respect to ! ,di/rict ,retirem5t ,fund "u ! ,di/rict ( ,columbia ,retirem5t ,protection ,act ( #aiig4 7#c7 ,:e!r a freeze ( future b5efit accruals "u su* plans is necess>y or advisable4 7#d7 ,! ext5t to :i* b5efit r$uctions1 su* z h be5 made 9 previ\s municipal bankruptcy proce$+s1 w\ld be necess>y or advisable to atta9 su/a9ability = su* plans or create p>ity ) paym5t r$uctions applicable to retir$ individuals :o are1 directly or indirectly1 ,pu]to ,rico bondhold]s4 #djc4 ,heal? & human s]vices report 7a7 ,9 g5]al ,n lat] ?an #ij days aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ,heal? & ,human ,s]vices %all submit to ! ,committee on ,f9ance & ! ,committee on ,en]gy & ,natural ,res\rces ( ! ,s5ate1 ! ,committee on ,ways & ,means & ! ,committee on ,natural ,res\rces ( ! ,h\se ( ,repres5tatives1 & to ! ,resid5t ,commission] ( ! ,commonweal?1 recomm5dations t specify ! mann] 9 :i* ! ,f$]al ,gov]nm5t %\ld m equitably allocate res\rces across ! t]ritories-- 7#a7 )\t-- 7,a7 add+ to ! ,f$]al debt2 or 7,b7 significantly decreas+ ! solv5cy ( ! ,f$]al ,old-,age & ,survivors ,insurance ,tru/ ,fund & ! ,f$]al ,disability ,insurance ,tru/ ,fund "u section #bja ( ! ,social ,security ,act 7#db ,u4,s4,c4 #dja71 ! ,f$]al ,hospital ,insurance ,tru/ ,fund "u section #ahag ( su* ,act 7#db ,u4,s4,c4 #acie;i71 & ! ,f$]al ,supplem5t>y ,m$ical ,insurance ,tru/ ,fund "u section #ahda ( su* ,act 7#db ,u4,s4,c4 #aciet72 & 7#b7 to promote-- 7,a7 horizontal equity across t]ritories2 & 7,b7 int]-temporal horizontal equity across ,/ates & t]ritories to acc\nt = relative ,f$]al income tax burd5s & ne$s4 7b7 ,e/imate ( effects ,n lat] ?an #ij days aft] ! date on :i* ! recomm5dations are submitt$ "u subsection 7a71 ! ,(fice ( ! ,actu>y ( ! ,c5t]s = ,m$ic>e ,m$icaid ,s]vices %all provide to ! ,secret>y ( ,heal? & ,human ,s]vices & to ! ,committee on ,f9ance & ! ,committee on ,en]gy & ,natural ,res\rces ( ! ,s5ate & ! ,committee on ,ways & ,means & ! ,committee on ,natural ,res\rces ( ! ,h\se ( ,repres5tatives an e/imate ( ! effects t su* recomm5dations w\ld h on ! ,f$]al ,hospital ,insurance ,tru/ ,fund "u section #ahag ( ! ,social ,security ,act 7#db ,u4,s4,c4 #acie;i74 7c7 ,economic impact analysis ,n lat] ?an #ij days aft] ! date on :i* ! recomm5dations are submitt$ "u subsection 7a71 ! ,(fice ( ! ,actu>y ( ! ,c5t]s = ,m$ic>e ,m$icaid ,s]vices %all provide to ! ,secret>y ( ,heal? & ,human ,s]vices1 ! ,committee on ,f9ance & ! ,committee on ,en]gy & ,natural ,res\rces ( ! ,s5ate1 ! ,committee on ,ways & ,means & ! ,committee on ,natural ,res\rces ( ! ,h\se ( ,repres5tatives1 & to ! ,resid5t ,commission] ( ! ,commonweal? an economic impact analysis ( ! b5efits & co/s ( su* recomm5dations1 includ+ an executive summ>y detail+ ! results ( ! analysis 9 nonte*nical t]m9ology4 7d7 ,f9al report ,n lat] ?an #ij days aft] ! date on :i* ! e/imate & analysis are provid$ "u subsections 7b7 & 7c71 ! ,secret>y ( ,heal? & ,human ,s]vices1 act+ ?r\gh ! ,m$ic>e ,paym5t ,advisory ,commission & ! ,m$icaid & ,,*ip ,access ,commission1 %all review su* e/imates & analyses & provide to ! ,committee on ,f9ance & ! ,committee on ,en]gy & ,natural ,res\rces ( ! ,s5ate1 ! ,committee on ,ways & ,means & ! ,committee on ,natural ,res\rces ( ! ,h\se ( ,repres5tatives1 & to ! ,resid5t ,commission] ( ! ,commonweal? a report conta9+ a f9al assessm5t & recomm5dations bas$ on su* e/imates & analyses to provide equitable treatm5t to t]ritories & d s 9 a fiscally responsible way1 bo? intra- & int]-temporally4 ,v ,transition assi/ance #eja4 ,assi/ance by ! ,au?ority1 if necess>y1 to assi/ transition to /ability 7a7 ,appropriation ,!re is au?oriz$ to be appropriat$1 & !re is appropriat$1 #c1jjj1jjj1jjj4 ,su* am\nt %all rema9 available ?r\gh fiscal ye> #bjaf4 7b7 ,use ( funds ,am\nt appropriat$ "u subsection 7a7 may be us$ by ! ,au?ority to provide res\rces1 if ! ,au?ority det]m9es x to be necess>y1 to assi/ ! transition ( ! ,commonweal? to f9ancial1 fiscal1 economic1 & heal? c>e /ability4 7c7 ,reasons = use ( funds ,if ! ,au?ority provides funds to ! ,commonweal? "u subsection 7b71 ! ,au?ority %all1 n lat] ?an #cj days prior to allocat+ su* funds1 submit a report conc]n+ ! reasons = ! use ( su* funds1 includ+ ! p]ceiv$ ne$ = transition assi/ance & empirical analysis v]ify+ su* ne$1 to-- 7#a7 ! ,committee on ,f9ance & ! ,committee on ,en]gy & ,natural ,res\rces ( ! ,s5ate2 7#b7 ! ,committee on ,ways & ,means & ! ,committee on ,natural ,res\rces ( ! ,h\se ( ,repres5tatives2 7#c7 ! ,resid5t ,commission] ( ! ,commonweal?2 & 7#d7 ! ,gov]nor4 7d7 ,audit ,! ,comptroll] ,g5]al %all-- 7#a7 conduct an audit ( ! use ( funds provid$ to ,pu]to ,rico "u subsection 7b72 & 7#b7 :5 practicable1 submit to ! appropriate committees ( ,congress a report detail+ ! exp5ditures "u ?is section & ! purpose ( su* exp5ditures4 #ejb4 ,(fset = transition assi/ance & ,prev5tion & ,public ,heal? ,fund 7a7 ,9 g5]al ,subsection 7b7 ( section #djjb ( ! ,pati5t ,protection & ,af=dable ,c>e ,act 7#db ,u4,s4,c4 #cjju-#aa7 is am5d$-- 7#a7 9 p>agraph 7#b71 by /rik+ #bjag & ins]t+ #bjae2 & 7#b7 by /rik+ p>agraphs 7#c7 ?r\gh 7#e74 7b7 ,rescission ( unobligat$ funds ,( ! funds made available by su* section #djjb1 ! unobligat$ balance is resc9d$4 ,,vi ,te*nical ,assi/ance #fja4 ,te*nical assi/ance to improve acc\nt+1 disclosure1 & economic measurem5t practices 9 ! t]ritories 7a7 ,9 g5]al ,! ,secret>y ( ! ,treasury 7ref]r$ to 9 ?is section z ! ,secret>y7 %all provide te*nical assi/ance to ! t]ritories ( ! ,unit$ ,/ates 7includ+ ! ,commonweal? ( ,pu]to ,rico7 to provide = improv$ acc\nt+ & disclosure practices 9 ! applicable t]ritory4 7b7 ,inclusions ,9 provid+ te*nical assi/ance "u subsection 7a71 ! ,secret>y1 9 consultation ) any appropriate economic measurem5t ag5cy & economic /ati/ical ag5cy ( ! ,f$]al ,gov]nm5t & ! ,f$]al ,res]ve ,bank ( ,new ,york1 may provide assi/ance relat+ to-- 7#a7 in=mation te*nology upgrades2 7#b7 improv+ economic =eca/+ capabilities2 7#c7 improv+ & exp&+ economic indicators = ! t]ritory 9 ord] to br+ ! indicators into l9e ) ! indicators regul>ly us$ to track regional conditions 9 ! ,unit$ ,/ates2 7#d7 budget+1 ca% managem5t1 & sp5d+ controls2 & 7#e7 ensur+ t ag5cies 9 ! t]ritory use f9ancial sy/ems t are compatible ) ! sy/ems ( o!r ag5cies ( ! t]ritory to provide = consi/5t1 timely f9ancial report+ & visibility into exp5ses4 7c7 ,au?orization ( appropriations ,!re are au?oriz$ to be appropriat$ su* sums z are necess>y to c>ry out ?is section = ! p]iod ( fiscal ye>s #bjaf ?r\gh #bjai4