(H.B. 946) (No. 120) (Approved August 17, 2001) AN ACT To create the Municipal Recreational and Sports Community Facilities Act and implement the “Cada Parque con su Municipio y cada Comunidad con su Parque” Program, so as to order the conditional transfer of ownership of certain real property registered in the name of the Sports and Recreation Department to the Municipalities of the Commonwealth of Puerto Rico, located within the territorial and geographical boundaries of each of these municipalities; establish concordance between the Property Registry and the extraregistral juridical reality; establish parameters to regulate the public policy and the supervisory efforts between the Department and the municipalities; establish administrative and legal responsibilities; establish a transition committee and propose and establish the appropriation of recurrent funds. STATEMENT OF MOTIVES The Sports and Recreation Department was created to render direct recreational and sports services throughout the whole Island. This function, inherited from the formed Public Parks and Recreation Administration, is, among other reasons, presently in crisis due to the proliferation of recreational and sports facilities. In order to establish the public policy that would return to the Sports and Recreation Department its original purpose, it is imminent to give back to the municipalities the real and effective control of the community recreational facilities located within their territorial boundaries. This is to be done by transferring to the municipalities the ownership of the land where these facilities are located. This transfer has several objectives. In the first place, the Sports and Recreation Department of the Commonwealth of Puerto Rico will be primarily freed from its daily responsibility for cleaning and beautifying these community parks. In the second place, the Sports and Recreation Department will be able to properly attend to those non-community facilities whose size and complexity demand rigorous and costly maintenance. Finally, the Department will be able to devote its efforts to providing comprehensive and effective sports programs, an activity which must again become the main endeavor of this Agency. Furthermore, the decentralization that shall take place as a consequence of these transfers shall give the municipalities and the communities the power over their parks, sport courts and fields and passive recreational areas they have claimed for so long. The purpose of the funds to be received by the Department for improving the facilities that shall be transferred to the municipalities is to contribute towards improving the maintenance and the beautification of the facilities. The Department and the municipalities shall use the monies to enhance the facilities so they become useful and pleasant community areas with programmed and recurrent maintenance to prevent their neglect. The Department shall thus exercise its support and supervisory function to achieve, on the one hand, an effective sports and recreation program, and on the other hand, the maintenance and beautification of all community facilities throughout the Island. This Act creates the mechanisms needed to fulfill the objectives set forth above, to wit: establish concordance between the Property Registry and the juridical reality so as to be able to conduct the juridical transaction of transferring the patrimonial land of the Department and so that the Municipalities may assume responsibility over any other ulterior juridical business or transaction corresponding to the Property Register; establish parameters to regulate the public policy between the Department and the Municipalities in relation to the authorized and ordered transfer; establish the administrative and legal responsibility of the government entities involved in said transfers; establish a Transition Committee to conduct said transfer in an organized, orderly and effective manner and establish the way and the criteria to carry out the appropriation of recurrent funds for a specific time period. BE IT ENACTED BY THE LEGISLATURE OF PUERTO RICO: Section 1.-This Act shall be known as the “Municipal Recreational and Sports Community Facilities Act” to implement the “Cada Parque con su Municipio y cada Comunidad con su Parque” Program. Section 2.-Definitions: For the purposes of this Act, the words or phrases set forth below shall have the meaning herein indicated, unless another meaning clearly arises from the context: (a) Mayor – is the Chief Executive of the municipal government. (b) Assembly – is the body with legislative duties concerning municipal matters, duly constituted and officially known as “Municipal Assembly”. (c) Appropriation – is any sum of money authorized by the Legislature, the Municipal Assembly or the Federal Government to carry out a specific activity or achieve certain objectives. (d) Certification – is the document proving ownership that substitutes a public deed by virtue of which the conditional transfer of title of the patrimonial real estate of the Department to the municipalities is executed. (e) Registry Certification – is the certification issued by the Property Registrar as to the outcome of the contents of the Register (fees and charges on the real property or registered right, the existence of any document introduced and pending evaluation and any other matter included by the Registrar). (f) Department – is the Sports and Recreation Department created by virtue of Section 3 of Act No. 126 of June 13, 1980, as amended, known as the “Sports and Recreation Department Organic Act”. (g) Recreational or Sports Facility – is any space or physical area, with or without a structure, that because of its size and daily use mainly serves neighboring communities and is used for recreational purposes or for practicing some sport. This definition includes the expression “Patrimonial Real Estate” as defined in Section 2, subsection (m) of this Act. This definition also includes the definition for “facility” established in subsection (o) of Section 1.003 of Act No. 81 of August 30, 1991, as amended, known as the “Autonomous Municipalities Act”; provided that because of its nature, design or use is used for recreational or sports purposes. (h) Regional Facilities – are those real properties that because of their size, complexity and daily use serve for conducting activities that attract persons from around the whole Island. (i) Municipality – is the geographical boundary to include all its barrios, with a specific name, that is governed by a local government constituted by a Legislative Power and an Executive Power. This furthermore includes the meaning of juridical entity of the local government, subordinate to the Constitution of the Commonwealth of Puerto Rico and to its laws. (j) Municipalization – is the organized, orderly and effective transfer of ownership of the community sports and recreational facilities of the Department to the municipalities, according to their geographical boundaries. (k) Ordinance – is any legislation duly approved under the municipal jurisdiction of a general or specific nature whose effectiveness is indefinite. This includes the affirmative expression of the Municipal Assembly accepting the transfer ordered and provided by this Act. (l) Municipal or Public Property – is any recreational or sports facility for community use that the municipality acquires by virtue of the transfer of ownership by the Department, as authorized and ordered by this Act. (m) Patrimonial Community Property – any facility owned by the Department such as parks, courts, and centers or areas and premises whose nature or use is devoted to recreational or sports activities that are located in the communities and that because of their size or daily use mostly serve the residents of neighboring communities. This definition excludes stadiums, sports complexes or any facility that because of its nature or size is mostly used for regional or national activities. (n) Secretary – is the Secretary of the Sports and Recreation Department created by virtue of Section 4 of Act No. 126 of June 13, 1980, as amended. Section 3.-The Secretary shall have the power to freely transfer to the municipalities the ownership title of the patrimonial community property of the Department. This transfer shall be executed according to the procedures and conditions established in this Act and subject to acceptance by the municipalities through an ordinance. Section 4.-The conditional transfer of the patrimonial property of the Department to the Municipalities shall be executed by means of a Certification, with its effect as a public deed, according to the procedures and requirements established below: (a) The Department shall identify the patrimonial property to be transferred according to: (1) the expression of the common name by which the facility is known (2) it being qualified and classified as “community” property (3) the description of the property according to the Property Register. The actual existence of a building that is not ascertained in the Register may be verified as part of the description of the property (4) the registration entry of the real property including volume and lot number and folio and an indication in the Section of the Register where the same appears as registered. (b) Once the patrimonial community property has been identified, the Department shall request that the corresponding Property Register issue a Registration Certification thereof. Said application shall include the information contained in subsection (a) of this Section. (c) Once the Registration Certification has been issued, the Secretary shall have the power to execute the conditional transfer of the patrimonial property to the corresponding municipality subject to the following directives. The Secretary and the Mayor of the concerned municipality, or their authorized representatives, shall issue a subscribed Certification including the following information: (1) the appearance of the Secretary or the official authorized by the latter in representation of the Department, containing his/her personal circumstances (2) the power of the Secretary to execute the conditional transfer of the patrimonial property pursuant to this Act (3) the appearance of the Mayor or official authorized by the latter in representation of the municipality in question, containing his/her personal circumstances (4) the power of the Mayor of the municipality in question to accept the conditional transfer in representation of and of behalf of the municipality (5) the following information about the property to be transferred: (i) common name by which the facility is known (ii) registry description of the property (iii) lot and volume number and folio where it appears registered (iv) section of the Property Register where it appears registered (v) application for transfer of ownership of the property to the corresponding municipality (vi) (6) the value of the property being transferred mention of the municipal ordinance endorsing the acquisition of the conditional transfer of the patrimonial property, including its date of approval (7) conditions for the transfer executed, according to what is established in Sections 6 and 7 of this Act (8) date on which the Certification is subscribed (9) signatures of the Secretary and the Mayor of the municipality in question or their authorized representatives (10) the seal of the Department. (d) Once the Certification has been subscribed according to the directives indicated in subsection (d) of this Section, the same shall be filed by the Mayor with the corresponding Property Register, free from the payment of fees. Section 5.-Upon presentation, the Certification in the Property Register must be accompanied by the following documents: (a) a certified copy of the Municipal Ordinance authorizing the Mayor or his/her representative to accept the acquisition of the patrimonial property described in the Certification (b) the original and a copy of the Presentation Minutes required by Section 31.4 to 31.10 of the General Regulations for Executing the Mortgage and Property Register Act. Section 6.-The conditional transfer of the title of the patrimonial property shall be subject to the charges and the lien arising from the Register at the time the property is registered. Section 7.-The transfer of the title of the patrimonial property shall be subject to the following restrictive conditions for the municipalities: (a) The municipality is hereby bound to maintain the use of the sports and recreation facilities as previously designated for each facility. (b) The municipality is hereby bound to notify by certified mail to the Department, as interested party, all matters or procedures related to changes in the use and the constitution of lien or alienation of any patrimonial property to be transferred by virtue of this Act. This notice must be given prior to any transaction leading to changes as to the use, encumbrance or alienation of the property. (c) The consideration of the Department shall be deemed as having the force of law regarding the final resolution about the changes as to the use, encumbrance or alienation of the transferred property. (d) Should the Department fail to agree to the change in the use and the constitution of lien or alienation of the property, the municipality shall use and maintain the patrimonial property acquired by virtue of this Act for the same purpose for which it was acquired. Should the Sports and Recreation Department agree to the change in use it shall be necessary to obtain the approval of the Legislature by means of a Joint Resolution. (e) Should the municipality fail to comply with the maintenance and beautification efforts, or make any changes as to the use and the constitution of lien or alienation of the property without first consulting or obtaining the consent of the Department and in detriment to the purpose of the sports or recreation activities, the ownership and administration of the patrimonial property transferred by virtue of this Act, shall revert to the Department through a decision of the General Court of Justice of the Commonwealth of Puerto Rico. (f) The legal liability for damages caused by noncompliance with any of the conditions imposed in this Section, should there be any for a third party or for the Department, shall be settled by the municipality except when otherwise determined by the General Court of Justice of the Commonwealth of Puerto Rico. Section 8.-The Secretary is hereby empowered to transfer to the municipalities, free of charge and simultaneously with the transfer of the land, the structures contained therein, provided they are the property of the Department. Section 9.-The acquiring municipalities shall be responsible for taking the following actions according to the laws in effect: (a) grant Building Certificates for those structures that do not appear in the Register and file them with the Property Register to be registered as municipal properties. (b) group together or segregate the tracts of land, if necessary. (c) determine the value of the structures through assessments conducted by the Municipal Revenues Collection Center. (d) request from the Municipal Revenues Collection Center the official property record number corresponding to each facility. Section 10.-Conditions for the transfer of community facilities (a) The Department reserves the right to fulfill its obligation to supervise the municipalities so they, in turn, fulfill their obligation to provide administrative, maintenance, sanitation and beautification services. (b) The Department shall pay for the water and electric power consumed by the transferred facilities during their first year after being transferred; the second year it shall pay fifty (50) percent of such invoices; the third year the municipality shall assume full responsibility. For such a purpose the year shall begin once the Certification has been granted, as defined in this Act. (c) The Department reserves the right to establish recreational and sports programs in all community facilities without being charged for the right of use in the transferred properties. The Department may not apply this reserved right in those facilities where the municipality is conducting recurrent, programmed and well attended activities. (d) The Department shall have the subsidiary obligation of ensuring and providing maintenance in those community facilities that are unattended by the municipalities. The maintenance to be provided by the municipalities must never be less than that provided by the Department before said facilities were transferred to the municipalities. Should the Department need to provide said maintenance, the same shall be chargeable to the pertinent municipality. (e) The Department reserves the right to fine the municipality that fails to fulfill the obligations established in this Section, under the criteria established in Act No. 126 of June 13, 1980. Section 11.-Should there be an agreement to delegate competence by which the municipality is to be in charge of administering the patrimonial property of the Department, the municipality shall retain administrative and legal responsibility according to the provisions of the agreement until the latter expires or until the municipality obtains ownership of the property. Section 12.-Any lease or usufruct contract or agreement to delegate competence or administration agreement executed between the Department and a Municipality which at the time in which the patrimonial property is transferred is in effect, shall immediately loose its effectiveness and be resolved by confusion of rights. Likewise, those contract or agreements that had been executed between the Department, the municipalities and recreational, sports and resident associations and resident councils shall remain in effect until the regulations provided in Section 22 of this Act are implemented. The contracts executed between the Department and natural or juridical persons shall continue in effect until their expiration date. Section 13.-Any entry and development option contract as well as any entry and development permit granted by the Department and the municipality which at the time of the transfer of ownership of the patrimonial property is in effect, shall remain in effect under the same clauses and conditions established at the time it was granted. In relation to these contracts, it is hereby provided that the municipality is substituted in place of the Department with the same rights and obligations corresponding to the latter from the date they were granted. Section 14.-The Department retains its legal liability in relation to any matter regarding the property transferred until the moment the Certification transferring ownership of the same to the municipality is signed. Section 15.-After the Certification transferring ownership of the property to the municipality has been signed, the latter assumes legal liability with regard to any matter concerning said property henceforth. Section 16.-The transfer of ownership of the patrimonial property of the Department to the municipalities in no way means that the Executive Branch of the Government of the Commonwealth of Puerto Rico or the Department are excluded from the implementation of the public policy of the government in the area of sports and recreation. Neither does it mean that Act No. 126 of June 13, 1980, as amended, should loose its effectiveness. The Department is hereby directed to regulate its responsibilities towards the municipalities and the community organizations within a term of one hundred and twenty (120) days pursuant to the provisions of Act No. 126 of June 13, 1980, as amended, the Sports and Recreation Department Organic Act, so as to reconcile the position of the municipality as new owner of the patrimonial property, as provided by virtue of this Act, with the public policy of the government and to the provisions of Section 6 and 7 of this Act. Section 17.-The transfer of ownership of the Patrimonial Property of the Department ordered and provided by this Act extends to that property that up to now presents the following problems: (a) discrepancy between the juridical and extra-registrar reality (b) defective registration (c) difficulty to identify the property and qualify and classify the same as community property as to whether the land in question is inherited or acquired from the following government agencies: the Public Parks and Recreation Administration, presently the Sports and Recreation Department; the Land Administration; the Department of Housing; the Department of Education; the Department of Transportation and Public Works; and the Planning Board and Urbanization Projects Developers. In these cases the transfer of the Patrimonial Property shall be executed in the same manner provided in this Act, but according to the degree to which each particular situation is being resolved. Section 18.-Such property that at the time of its approval has lost all public usefulness and that for this reason has been released or is in the process of being sold is hereby excluded from the classification of patrimonial community property and from the provisions of this Act. Those entities responsible for determining the loss of public usefulness of any property shall submit a report to the Legislature within the term of one hundred and eighty (180) days finally indicating what these properties are and where they are located. Section 19.-In order to make this Act feasible it is hereby ordered that a Transition Committee be designated. Said Transition Committee must include representatives from the Department, the Secretary, the Mayor and the Municipal Assembly of the corresponding municipality. The representation of the Secretary and the Mayor must cover areas such as public policy, legal counseling, real estate, budget and physical infrastructure. The representation of the Municipal Assembly must include the presidency and the commission in charge of real estate, public works and property acquisition. Section 20.-The Transition Committee shall be in charge of the following tasks: (a) Department (1) Identify the Patrimonial Community Property (2) Request the Registration Certification from the Property Register (3) List by number the Patrimonial Property and describe the same according to the provisions of subsection (a) and (d) of Section 6 of this Act (4) Identify funds (5) Coordinate the transfer of ownership of the Patrimonial Property of the Department to the Municipality with the Mayor, the President of the Municipal Assembly and the Chairpersons of the corresponding committees (b) Municipality (1) The Mayor and the Municipal Assembly shall coordinate the application for and approval of the ordinance for accepting the transfer of the Patrimonial Property of the Department. The Mayor or his/her designated representative shall file the Certification for registering the transfer of the Patrimonial Property ceded to the municipality with the corresponding Property Register. The Mayor or his/her designated representative must conduct the identification, numbering and description of all structures attached to the real estate of the patrimonial property acquired according to the provisions of Section 9 of this Act. Section 21.-The appropriation of recurrent funds in the Sports and Recreation Department is hereby proposed and established for a term of ten (10) years for the implementation of this Act. This fund shall be used to improve and maintain the facilities that shall be transferred to the municipalities. The appropriation of funds to each municipality must take into consideration the size of the Patrimonial Property to be transferred, its condition at the time of the transfer and the population of the Municipality. The monies to be appropriated to fulfill the purposes of this Act shall be exclusively used to make minor improvements and provide maintenance and beautification. They may not be used for making luxury remodeling or for constructions that because of their cost defeat the purpose of enhancing all community facilities and allowing for their daily maintenance. Section 22.-The Sports and Recreation Department of the Commonwealth of Puerto Rico shall approve regulations for the proper implementation of this Act. Section 23.-All laws, rules and regulations in conflict with the provisions of this Act must be lawfully in harmony with the spirit and purpose of this Act so that the public policy herein set forth may be minimally infringed on. Section 24.-The provisions of this Act are separable. Should any of the provisions of this Act be declared unconstitutional, it shall neither affect nor impinge upon the remaining provisions. Section 25.-This Act shall take effect immediately after its approval. CERTIFICATION I hereby certify to the Secretary of State that the following Act No. 120 (H.B. 946) of the 2nd Session of the 14th Legislature of Puerto Rico: AN ACT to create the Municipal Recreational and Sports Community Facilities Act and implement the “Cada Parque con su Municipio y cada Comunidad con su Parque” Program, so as to order the conditional transfer of ownership of certain real property registered in the name of the Sports and Recreation Department to the Municipalities of the Commonwealth of Puerto Rico, located within the territorial and geographical boundaries of each of these municipalities; establish concordance between the Property Registry and the extraregistral juridical reality; etc., has been translated from Spanish to English and that the English version is correct. In San Juan, Puerto Rico, today 15th of December of 2004. Elba Rosa Rodríguez-Fuentes Director