Esta ley enmienda la Ley Núm. 96 de 26 de junio de 1964 para autorizar a la Oficina de Ética Gubernamental a imponer multas administrativas a los jefes de agencias gubernamentales que no notifiquen la pérdida de fondos y propiedad pública. Establece el deber de las agencias de investigar las causas de dichas pérdidas y tomar medidas correctivas, así como notificar al Contralor y al Secretario de Justicia en ciertos casos. También dispone sobre la exención de pago o reembolso en casos de pérdidas menores a $5,000 si no hubo culpa o negligencia del empleado. La ley aplica a las agencias del Poder Ejecutivo y los municipios, y requiere que los Poderes Legislativo y Judicial aprueben sus propias normas.
(Approved September 16, 2004)
To amend Act No. 96 of June 26, 1964, which establishes the requirements of Section 74-A of the Political Code of 1902, as amended, in order to authorize the Office of Government Ethics to impose administrative fines on any employee responsible for a government agency who fails to fulfill his/her duty to inform the agencies concerned about the loss of public funds and property.
Act No. 96 of June 26, 1964, which establishes the requirements of Section 74-A of the Political Code of 1902, as amended, imposes on government entities the ministerial duty of notifying the loss of public funds and property. Said notice not only encompasses great losses but also the illegal disposition of objects of lesser value whose loss erodes the treasury and the economic capabilities of the Government of the Commonwealth of Puerto Rico.
The government agencies to be notified, pursuant to the aforementioned Act No. 96 and other legal provisions, are the Office of the Comptroller, the Department of Justice, the Department of the Treasury and the Office of Government Ethics, which individually or jointly are empowered to, among other duties, maintain a register of notices received,
conduct audits to verify losses and their alleged causes, initiate legal actions, recover the cost of the losses through bonds and insurance and recommend to the affected government entities to take preventive or corrective measures.
Act No. 96, supra, also establishes the actions that must be initiated when it is determined that any public officer or employee is in default in his/her accounts, has not rendered an exact accounting or has disposed of public funds or property for purposes not authorized by law, or that any such officer, employee or private person has without legal authorization used, destroyed, disposed of or benefited from public funds or property owned by or under the control or custody of a government agency.
The Office of the Comptroller of Puerto Rico has recognized the need to authorize the Office of Government Ethics to impose administrative fines to the head officers of the government agencies who fail to comply with their ministerial duty of notifying the loss of public funds and property, since they are in the last instance the persons responsible for issuing such a notice. The recommendation of the Office of the Comptroller of Puerto Rico is in great measure the product of the fact that Act No. 96 supra, does not establish any penal, civil or administrative sanctions. It only provides the duty to inform. However, failure to comply with the same may entail the imposition of sanctions pursuant to other legal provisions such as the Government of Puerto Rico Accounting Act, the Penal Code and the Government Ethics Act.
The Legislature of the Commonwealth of Puerto Rico, conscious of its obligation to approve legislation intended to promote the sound administration of public funds and property, recognizes the need for amending Act No. 96 of June 26, 1964, which establishes the requirements of Section 74-A of the Political Code of 1902, as amended, in order to
authorize the Office of Government Ethics to impose administrative fines for violations of said statute.
Section 1.-Act No. 96 of June 26, 1964, which established Section 74A of the Political Code of 1902, as amended, is hereby amended to read as follows: "When an agency determines that any of its officers or employees is in default in his/her accounts, has not rendered an exact accounting or has disposed of public funds or property for purposes not authorized by law, or that any of its officers, employees or a private person without legal authorization has used, destroyed, disposed of or benefited from public funds or property under the care, control or custody of the agency, the latter shall immediately notify the Comptroller of Puerto Rico for the corresponding action.
The agency shall be responsible for conducting an investigation in order to determine the causes and circumstances in which the loss and disposal of the such public properties or funds occurred and taking the administrative measures that are necessary to correct the deficiency that propitiated the loss and to direct that the proper actions and sanctions be taken against the officers or employees responsible for said action. When the head of the agency cannot achieve compliance with the actions and sanctions imposed against the official or employee, he/she shall notify the Secretary of Justice of this fact for the latter to determine whether any other sanction is to be imposed of if judicial action is to be taken to ensure compliance.
When the default in the account or the value of the properties in question exceeds the amount of five thousand $(5,000)$ dollars, or in any case in which the outcome of said investigation tends to establish the commission
of a crime, the agency shall also immediately notify the Secretary of Justice so he/she may take the corresponding action.
The aforementioned notices shall be made even though the funds or properties have been, are or can be returned. For the purposes of this Section the work 'agency' means the departments, agencies and instrumentalities of the Commonwealth of Puerto Rico, including its subsidiaries and municipalities.
Notwithstanding the provisions of subsection
(c) of Section 12 of Act No. 230 of July 23, 1974, as amended, known as the "Government of Puerto Rico Accounting Act," in any case in which the amount of the public properties or funds does not exceed five thousand $(5,000)$ dollar, the head of the agency may relieve the officer or employee from the payment or reimbursement of the public funds, monies or properties under his/her custody after conducting the investigation directed by this Section and verifying that it was not caused by the fault, guilt or negligence of said officer or employee,
Noncompliance by the officer responsible for a government agency of the Executive Branch and the municipalities of his/her ministerial duty of issuing the notice required by virtue of this Section may entail the imposition of an administrative fine fixed by the Executive Director of the Office of Government Ethics, pursuant to the provisions of subsection
(c) of Section 3.8 of Act No. 12 of July 24, 1985, as amended, known as the "Commonwealth of Puerto Rico Ethics in Government Act."
Section 2.-The Legislative Branch and the Judicial Branch shall approve, within the term of one (1) year as of the date of approval of this Act, the standards and procedures that shall govern in said government branches to inform the agencies concerned about the loss of public funds and
property as well as about the sanctions that shall apply for noncompliance with the provisions of said standards and procedures.
Section 3.-This Act shall take effect thirty (30) days after its approval.
I hereby certify to the Secretary of State that the following Act No. 350 (H.B. 3809) of the $7^{ ext {th }}$ Session of the $14^{ ext {th }}$ Legislature of Puerto Rico:
AN ACT to amend Act No. 96 of June 26, 1964, which establishes the requirements of Section 74-A of the Political Code of 1902, as amended, in order to authorize the Office of Government Ethics to impose administrative fines on any employee responsible for a government agency who fails to fulfill his/her duty to inform the agencies concerned about the loss of public funds and property, has been translated from Spanish to English and that the English version is correct.
In San Juan, Puerto Rico, today 6th of December of 2005.
Francisco J. Domenech Director