Law on Community Patronages and Associations

Citizens have the right to freely associate for the purposes they deem convenient to their interests within the framework of the Constitution of the Republic and international treaties and conventions on Human Rights. The exercise of such right must be subject to the restrictions expressly provided for in the Law that are necessary in a democratic society and that do not violate international treaties and conventions for the protection of Human Rights.

It is the legal form of association in which communities established in a determined physical space organize themselves for the pursuit of the common good, self-management of their needs, or the defense of their interests.

Patronatos are independent in the taking of their decisions, within the framework of the Laws, they must act with broad spirit of collaboration and harmony with the Municipalities in the realization of their common objectives. In the event of managing public resources they are fully subject to the members to the participation of the State Control Entities and to the corresponding constitutional and legal responsibilities. CHAPTER II OF THEIR MEMBERS

Members of the Patronato are citizens who reside in the human settlement and those who have a direct and demonstrable interest in the dispositions that the Patronato may take. Entities may also participate in the capacity of passive members through their representatives, having to accredit such status before the Board of Directors of the Patronato or Community Association. Entry or withdrawal from the Patronato or Community Associations is free, notwithstanding, when a member who has decided not to be part of the same does not receive a direct benefit, they have the same obligations contracted by the beneficiary neighbors.

Members of community associations are those who voluntarily decide to associate in accordance with their bylaws.

Active members of patronatos and community associations have the following rights:

• 1)

  To elect and be elected for the management positions defined in the bylaws of the Patronato or association;

• 2)

  To participate in decision-making by casting their vote in favor of or against the proposals submitted for approval by the assembly;

• 3)

  To be informed of the management and administration of the resources of the Patronato or association regardless of their origin; and,

• 4)

  Those other rights granted by the bylaws.

The obligations of members of the Patronato and community associations are the following:

• 1)

  To respect and comply with the decisions taken by the General Assembly and fulfill the obligations assumed by the same;

• 2)

  To cooperate in solidarity in the activities and programs of common benefit;

• 3)

  Those other obligations determined in the bylaws of the Patronato of the Community Association. CHAPTER III OF THEIR AUTHORITIES AND REPRESENTATIVES

Patronatos and community associations are free to decide the form of internal organization, which shall consist of a Board of Directors of no more than ten (10) members, as well as their governing bodies and legal representation. No authority can require the formation of the governing bodies of the Patronato or community association in a form different from that agreed upon by its members. When the Patronato or community association must manage or execute projects whose economic or financial cost exceeds the equivalent in national currency of Ten Thousand Dollars ($ 10,000.00) of the United States of America, the authorities of the Patronato of the community association must establish a trust or delegate its administration to an institution supervised by the National Commission of Banks and Insurance (CNBS). Because these are funds coming from the people organized in patronatos or communities, the provisions established in the Law of the Superior Court of Accounts (TSC) are applicable, with regard to the rendering of accounts, audits and objections and other civil and criminal responsibilities.

Conflicts between neighbors on specific community matters or between neighboring communities or between patronatos and/or community associations shall be resolved through conciliation or arbitration procedures. When the interested parties so decide, against the decisions of the organizations, only the remedy of amparo is available. CHAPTER V POWERS OF PATRONATOS AND COMMUNITY ASSOCIATIONS

Patronatos and community associations have the right to decide on matters within their competence in the context of the common good. Municipal and national authorities, coordinators or persons responsible for programs must agree with communities at any level on the execution of works or projects that affect community life. Patronatos or community associations may manage public property or services, by delegation from the competent authority or through the figure of public-private partnerships.

Patronatos and community associations have the right to prepare, execute and manage their own projects for public infrastructure works, roads, health, environmental, education, security, services and other matters of their community interest. In any case, every work that is going to be managed by patronatos shall be equally subject to the regulations of the Law of Municipalities.

Patronatos and community associations may contract entrepreneurs for the execution of their development projects, organizing as a guarantee the properties that benefit in the manner established under the figure of Contribution for Improvements defined in the Law of Municipalities. Municipal or national authorities cannot collect or impose any tax on the same concepts on the properties of the community while the contract entered into by the community association or the corresponding patronato remains in effect.

Patronatos and community associations are authorized to enter into public security agreements in favor of their own community with the Municipalities, the State Secretariat in the Office of Security or other national entities. In such agreements, these may share costs in the training of Municipal or National Police officers, as well as the logistics required to provide security to the community.

Municipal, departmental, sub-regional, regional and national authorities have the obligation to respect, protect and promote patronatos and community associations as spaces for democratic organization and community self-management. CHAPTER VI OF THEIR LEGAL PERSONALITY

Patronatos and community associations acquire legal personality once registered in the Registry of Patronatos and Community Associations maintained by each Departmental Governorship, without prejudice to the provisions established in the Law of Municipalities.

PROCEDURE TO OBTAIN LEGAL PERSONALITY. Community associations and patronatos must follow the following procedure in order to obtain legal personality:

• 1)

  To be constituted as a Patronato or community association in a General Assembly of the community or group;

• 2)

  To draw up minutes on plain paper with the signature, digital fingerprint and Identity number of a minimum of twenty (20) founding members, as well as to include copies of neighborhood certificates;

• 3)

  To establish their own bylaws;

• 4)

  To define the name of the Patronato or Association;

• 5)

  To elect their authorities in accordance with their own bylaws; and,

• 6)

  To present to the Departmental Governor the minutes of the General Assembly for the constitution of the Patronato or community association, its bylaws and the names of its authorities. The procedure before the Departmental Governor shall be simple, without need for formalities or legal representation. The Departmental Governor shall only verify that the name of the association or Patronato is not identical to another previously registered. Once the procedures established in this Article have been completed, the Departmental Governor shall issue a certification of registration of the association or Patronato in the Registry of Patronatos and Community Associations within a period of thirty (30) business days. In no case shall there be more than one association with the same purpose for the same community.

SECOND-DEGREE ASSOCIATIONS. Patronatos and community associations or groups may freely confederate or adhere to second or third-degree associations for the defense of their interests; such associations must be registered with the Ministry of State in the Office of Interior and Population.

The trusts and/or delegated administration contracts referred to in this Law are exempt from any formality and from the payment of taxes, fees, rates and any other tax for their execution, registration and/or implementation.

The infrastructure works and other activities executed by patronatos and community associations are subject to the provisions of the Constitution, Municipal Legislation, Municipal Ordinances, the Law on Land Use Planning and other applicable laws.

The regulations of this Law must be issued by the Executive Power through the Ministry of State in the Office of Interior and Population for approval by the Executive Power within a period of sixty (60) days counted from the date this Law takes effect.

This Decree shall enter into force as of the day of its publication in the Official Gazette "La Gaceta". Done in the city of Tegucigalpa, municipality of the Central District, in the Hall of Sessions of the National Congress, on the sixteenth day of the month of December of two thousand thirteen.

To authorize the citizen VÍCTOR MANUEL LOZANO URBINA to accept from the sister Federative Republic of Brazil the Decoration of the NATIONAL ORDER DO CRUZEIRO DO SUL, in the Degree of "Grand Cross".