Sec. 203. Effect of finding of noncompliance with budget
703 words·~3 min read·
/bill/114/hr/4900/ih/section-203·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Not later than 15 days after the last day of each quarter of a fiscal year (beginning with the fiscal year determined by the Oversight Board), the Governor shall submit to the Oversight Board a report, in such form as the Oversight Board may require, describing— the actual cash revenues, cash expenditures, and cash flows of the territorial government for the preceding quarter, as compared to the projected revenues, expenditures, and cash flows contained in the certified Budget for such preceding quarter; and any other information requested by the Oversight Board, which may include a balance sheet or a requirement that the Governor provide information for each covered territorial instrumentality separately.
If the Oversight Board determines, based on reports submitted by the Governor under subsection (a), independent audits, or such other information as the Oversight Board may obtain, that the actual quarterly revenues, expenditures, or cash flows of the territorial government are not consistent with the projected revenues, expenditures, or cash flows set forth in the certified Budget for such quarter, the Oversight Board shall— require the territorial government to provide such additional information as the Oversight Board determines to be necessary to explain the inconsistency; and if the additional information provided under subparagraph
(A)does not provide an explanation for the inconsistency that the Oversight Board finds reasonable and appropriate, advise the territorial government to correct the inconsistency by implementing remedial action. The Oversight Board shall establish the deadlines by which the territorial government shall meet the requirements of subparagraphs
(A)and
(B)of paragraph (1). If the territorial government fails to provide additional information under subsection (b)(1)(A), or fails to correct a variance under subsection (b)(1)(B), prior to the applicable deadline under subsection (b)(2), the Oversight Board shall certify to the President, the House of Representatives Committee on Natural Resources, the Senate Committee on Energy and Natural Resources, the Governor, and the Legislature that the territorial government is at variance with the applicable certified Budget, and shall describe the nature and amount of the variance. If the Oversight Board determines that the territorial government has initiated such measures as the Oversight Board considers sufficient to correct a variance certified under paragraph (1), the Oversight Board shall certify the correction to the President, the House of Representatives Committee on Natural Resources, the Senate Committee on Energy and Natural Resources, the Governor, and the Legislature. If the Oversight Board determines that the Governor, in the case of any then-applicable certified Instrumentality Budgets, and the Governor and the Legislature, in the case of the then-applicable certified Territory Budget, have failed to correct a variance identified by the Oversight Board under subsection (c), the Oversight Board shall— with respect to the territorial government, other than covered territorial instrumentalities, make appropriate reductions in nondebt expenditures to ensure that the actual quarterly revenues and expenditures for the territorial government are in compliance with the applicable certified Territory Budget or, in the case of the fiscal year in which the Oversight Board is established, the budget adopted by the Governor and the Legislature; and with respect to covered territorial instrumentalities at the sole discretion of the Oversight Board— make reductions in nondebt expenditures to ensure that the actual quarterly revenues and expenses for the covered territorial instrumentality are in compliance with the applicable certified Budget or, in the case of the fiscal year in which the Oversight Board is established, the budget adopted by the Governor and the Legislature or the covered territorial instrumentality, as applicable; or institute automatic hiring freezes at the covered territorial instrumentality; and prohibit the covered territorial instrumentality from entering into any contract in excess of $100,000, or engaging in any financial or other transactions, unless the contract or transaction was previously approved by the Oversight Board. The Oversight Board shall cancel the reductions under subsection
(d)if the Oversight Board determines that the territorial government or covered territorial instrumentality, as applicable, has initiated appropriate measures to reduce expenditures or increase revenues to ensure that the territorial government or covered territorial instrumentality is in compliance with the applicable certified Budget or, in the case of the fiscal year in which the Oversight Board is established, the budget adopted by the Governor and the Legislature.