P.R. Laws tit. 3, § 1905
Any public corporation, government instrumentality, political subdivision or municipality shall be empowered to execute assistance contracts with the Authority, and any public corporation, government instrumentality, political subdivision or municipality which executes said agreement is hereby authorized and bound to comply with the provisions of said contracts and with the actions taken by or on behalf of the Authority under said contracts; provided, that said benefited entity would have been able to take such actions without violating any laws, contracts and agreements in effect.
The Authority shall execute the necessary assistance contracts with any benefited entity to which it provides assistance pursuant to the provisions of this chapter. Said contracts shall include all the provisions the Authority deems pertinent to achieve the purposes of said assistance, subject to the provisions of this chapter and any other acts, agreements and contracts of the Authority or the benefited entity which are in effect. Said contracts shall include, without it being understood as a limitation, provisions under which:
(a) The benefited entity is bound to comply with all operational, administrative and budget requirements and the drafting and manner of presenting reports, or those of any other nature that the Authority may impose as a condition to provide assistance.
(b) The benefited entity agrees to:
(1) File with the Authority budgets, capital improvement plans, reports of engineers, consultants and financial statements with the frequency and on such dates as may be required by the Authority.
(2) Employ consulting engineers, auditors and any other professionals and technical personnel that the Authority may require.
(3) Proceed promptly with the development of the project or projects, if any, for which assistance is being provided and assume the operation of such project immediately after the construction has been completed.
(4) Continue the operation and maintenance of the project or projects, if any, for which assistance is being provided, until the Authority determines otherwise.
(5) Provide resources and establish a fund for renewals, replacements or other permanent improvements, pursuant and subject to the requirements of any trust agreement or other loan instrument of the benefited entity, and establish said fund with the Government Development Bank or any other institution authorized by law to receive deposits of public funds, determined by the Authority.
(c) The Authority may declare special periods during which it can require the benefited entity to comply with certain conditions, or to perform or adopt those actions or measures that the Authority deems necessary and convenient to guarantee that said benefited entity shall comply with the provisions of the assistance contract and with its purposes and establish, in the corresponding assistance contract, the conditions under which said special periods shall begin and end, the measures which the Authority may implement during said periods, and the remedies available to the Authority when the benefited entity does not comply with the provisions of the assistance contract.
To be able to declare a special period, the Authority shall:
(1) Approve a resolution stating the need to put a special period into effect, in which it shall state in detail the grounds for declaring said period and the information furnished or recommendations made by consultants, officers or employees of the Authority on which said resolution is grounded.
(2) File with the Office of the Secretary of each Legislative Body, at least five (5) days prior to the effective date of the special period, a certified copy of the Board’s resolution declaring a special period.
During a special period, and as the only exception to any public bidding requirement imposed by the organic act or by the regulations of a benefited entity, the Authority shall be empowered to require it not to conduct said procedure in the adjudication of construction or purchase contracts or any other type of service contract, under special circumstances.
The Authority may only require a benefited entity not to comply with any public bidding requirement when it has been so provided in the assistance contract and a resolution to that effect has been adopted by the Authority for each particular case.
In said resolution the Board shall state the special circumstances which justify that the benefited entity in that particular case not be required to comply with any public bidding requirements. A copy of the resolution shall be filed with the Office of the Secretary of each of the Legislative Bodies no later than five (5) working days after the date the Board adopts its resolution.
History —June 21, 1988, No. 44, § 6; June 24, 1998, No. 92, § 3.