P.R. Laws tit. 21, § 4815
Any nonprofit corporations created with the purpose of promoting the development of some aspect of a municipality in existence at the time this act becomes effective, and that have received or are receiving real or personal property, funds or annual donations, recurrent or not, from a municipality, shall avail itself to the provision of this subtitle to become special corporations by amending the certificate of incorporation to restructure its configuration under the norms established in this subtitle and registering it with the Secretary of State after the amendment has been approved by the legislature. If the Secretary of State finds that it meets the provisions of subtitle, he/she shall register it and remit certified copies to the mayor and the assembly. This conversion shall be initiated within a term of one hundred and twenty (120) days from the effectiveness date of this act.
As of the date of enactment of this act, no municipality shall sponsor or patronize any nonprofit corporation to promote the development of any municipal public purpose, unless said corporation is constituted, organized, validated and operated according to the provisions of this chapter.
Any nonprofit corporation created under §§ 3501 et seq. of Title 14 to promote some municipal public purpose, which is in operation on the effective date of this act, and that does not cho[o]se to avail itself of the provisions of this subtitle, may continue to operate exclusively under the legal regime of §§ 3501 et seq. of Title 14. In this case, upon prior notice to the board of directors of said corporation, the municipality is empowered to cancel any agreement or contract that compels it to cede property or funds as of the date of approval of this act, when the corporation does not avail itself of the provisions of this subtitle.
Every nonprofit corporation that chooses to continue to function exclusively under §§ 3501 et seq. of Title 14 and has received real or personal property, or chattels, or donations shall be subject to periodic audits by the municipality, and the Office of the Comptroller of Puerto Rico shall audit everything regarding funds or public property ceded, assigned, or transferred to the corporation for its operation, at least every two (2) years.
History —Aug. 30, 1991, No. 81, § 17.014, renumbered as § 17.015 and amended on Apr. 13, 1995, No. 36, §§ 56, 58.