Financial Oversight and Management Board Integrity Act of 2023

II 118TH CONGRESS 1ST SESSION S. 922 To amend PROMESA to include certain ethics provisions to provide for the disqualification of certain advisors to the Financial Oversight and Management Board, and for other purposes. IN THE SENATE OF THE UNITED STATES MARCH 22, 2023 Mr. RUBIO (for himself and Mr. SCOTT of Florida) introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources A BILL To amend PROMESA to include certain ethics provisions to provide for the disqualification of certain advisors to the Financial Oversight and Management Board, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Financial Oversight 4 and Management Board Integrity Act of 2023’’. 5 VerDate Sep 11 2014 22:50 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S922.IS S922 kjohnson on DSK79L0C42PROD with BILLS 2 •S 922 IS SEC. 2. DISQUALIFICATION OF CERTAIN ADVISORS TO THE 1 FINANCIAL OVERSIGHT AND MANAGEMENT 2 BOARD. 3 Section 109 of PROMESA (48 U.S.C. 2129) is 4 amended by adding at the end the following: 5 ‘‘(c) DISQUALIFICATION OF CERTAIN ADVISORS.— 6 ‘‘(1) DEFINITION OF COVERED CONTRACT.—In 7 this subsection, the term ‘covered contract’ means a 8 contract with the territorial government or an in- 9 strumentality of the territorial government, the per- 10 formance of which is within the jurisdiction of the 11 Oversight Board under section 204(b). 12 ‘‘(2) DISQUALIFICATION.—In accordance with 13 the rules adopted by the Oversight Board under 14 paragraph (3), any third-party advisory or con- 15 sulting firm shall be disqualified from advising the 16 Oversight Board for the duration of any period dur- 17 ing which the firm has as a client, or provides advi- 18 sory or other consulting services in any capacity to, 19 an individual, corporation, association, organization, 20 or other business entity, including a subsidiary, that 21 is competing for, or is performing, a covered con- 22 tract. 23 ‘‘(3) RULES.—For purposes of carrying out 24 paragraph (2), the Oversight Board shall adopt rules 25 to carry out the following: 26 VerDate Sep 11 2014 22:50 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S922.IS S922 kjohnson on DSK79L0C42PROD with BILLS 3 •S 922 IS ‘‘(A) To be eligible to advise or consult the 1 Oversight Board with respect to the review, 2 procurement, or performance of a covered con- 3 tract, a third-party advisory or consulting firm 4 shall certify to the Oversight Board that the 5 third-party advisory or consulting firm is not 6 disqualified from advising the Oversight Board 7 under paragraph (2). 8 ‘‘(B) Any officer or employee of a third- 9 party advisory or consulting firm who prepares, 10 presents, or certifies any information or report 11 with respect to the certification of the third- 12 party advisory or consulting firm under sub- 13 paragraph (A) for the Oversight Board, or any 14 agent of the Oversight Board, that is inten- 15 tionally false or misleading, or, on learning that 16 any such information is false or misleading, 17 fails to immediately advise the Oversight Board 18 or an agent of the Oversight Board in writing, 19 shall be subject to prosecution and penalties 20 under law. 21 ‘‘(C) If, after an investigation conducted 22 by the Oversight Board, the Oversight Board 23 determines that a third-party advisory or con- 24 sulting firm has provided services to the Over- 25 VerDate Sep 11 2014 22:50 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S922.IS S922 kjohnson on DSK79L0C42PROD with BILLS 4 •S 922 IS sight Board in violation of paragraph (2), has 1 failed to submit a certification required under 2 subparagraph (A), or is in violation of subpara- 3 graph (B) (including any rules adopted under 4 subparagraph (A) or (B)), the Oversight Board 5 shall immediately refer such information to the 6 Attorney General for the covered territory and 7 the Office of the United States Attorney for the 8 covered territory.’’. 9 Æ VerDate Sep 11 2014 22:50 Mar 31, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S922.IS S922 kjohnson on DSK79L0C42PROD with BILLS