Title 48, Territories and Insular PossessionsRelease 119-110

§2145 Recommendations on Financial Stability and Management Responsibility

Title 48 › CHAPTER 20 — PUERTO RICO OVERSIGHT, MANAGEMENT, AND ECONOMIC STABILITY › SUBCHAPTER II — RESPONSIBILITIES OF OVERSIGHT BOARD › § 2145

Last updated Sep 22, 2026|Official source

Summary

The Oversight Board can send recommendations to the Governor or the Legislature to help the territory follow the Fiscal Plan or to improve money management, the economy, government oversight, and how services are delivered. These suggestions can cover many things, such as managing finances (like forecasting, IT, spending controls, benefit costs, and procurement), how departments are organized, changes to revenue sources, pension payment options, which services the government provides or moves to others, how laws and court orders affect operations, creating a performance-based personnel system, improving training and staffing, and privatizing or commercializing government entities. The Governor or the Legislature must reply within 90 days saying whether they will adopt the recommendations. If they will adopt any, they must include a written plan with specific performance measures and a clear timetable for putting them into place. If they will not adopt recommendations they have the power to adopt, they must explain why and send that explanation to the President and Congress.

Full Legal Text

Title 48, §2145

Territories and Insular Possessions, Source: USLM XML via OLRC

(a)In general

The Oversight Board may at any time submit recommendations to the Governor or the Legislature on actions the territorial government may take to ensure compliance with the Fiscal Plan, or to otherwise promote the financial stability, economic growth, management responsibility, and service delivery efficiency of the territorial government, including recommendations relating to—

(1)the management of the territorial government’s financial affairs, including economic forecasting and multiyear fiscal forecasting capabilities, information technology, placing controls on expenditures for personnel, reducing benefit costs, reforming procurement practices, and placing other controls on expenditures;

(2)the structural relationship of departments, agencies, and independent agencies within the territorial government;

(3)the modification of existing revenue structures, or the establishment of additional revenue structures;

(4)the establishment of alternatives for meeting obligations to pay for the pensions of territorial government employees;

(5)modifications or transfers of the types of services that are the responsibility of, and are delivered by the territorial government;

(6)modifications of the types of services that are delivered by entities other than the territorial government under alternative service delivery mechanisms;

(7)the effects of the territory’s laws and court orders on the operations of the territorial government;

(8)the establishment of a personnel system for employees of the territorial government that is based upon employee performance standards;

(9)the improvement of personnel training and proficiency, the adjustment of staffing levels, and the improvement of training and performance of management and supervisory personnel; and

(10)the privatization and commercialization of entities within the territorial government.

(b)Response to recommendations by the territorial government

(1)In general

In the case of any recommendations submitted under subsection (a) that are within the authority of the territorial government to adopt, not later than 90 days after receiving the recommendations, the Governor or the Legislature (whichever has the authority to adopt the recommendation) shall submit a statement to the Oversight Board that provides notice as to whether the territorial government will adopt the recommendations.

(2)Implementation plan required for adopted recommendations

If the Governor or the Legislature (whichever is applicable) notifies the Oversight Board under paragraph (1) that the territorial government will adopt any of the recommendations submitted under subsection (a), the Governor or the Legislature (whichever is applicable) shall include in the statement a written plan to implement the recommendation that includes—

(A)specific performance measures to determine the extent to which the territorial government has adopted the recommendation; and

(B)a clear and specific timetable pursuant to which the territorial government will implement the recommendation.

(3)Explanations required for recommendations not adopted

If the Governor or the Legislature (whichever is applicable) notifies the Oversight Board under paragraph (1) that the territorial government will not adopt any recommendation submitted under subsection (a) that the territorial government has authority to adopt, the Governor or the Legislature shall include in the statement explanations for the rejection of the recommendations, and the Governor or the Legislature shall submit such statement of explanations to the President and Congress.

Reference

Citations & Metadata

Citation

48 U.S.C. § 2145

Title 48, Territories and Insular Possessions

Last Updated

Sep 22, 2026

Release point: 119-110