SECTION XI. The Autonomous Entities and Decentralized Services
The various services of the industrial and commercial domain of the State shall be administered by Boards of Directors or Directors General and shall have the degree of decentralization that is determined by this Constitution and by laws enacted with the approval of an absolute majority of the full membership of each Chamber.
Boards of Directors, if composed of salaried members, shall consist of five or seven members as the law may establish in each case.
The law, by a two-thirds vote of the full membership of each Chamber, may prescribe that the Decentralized Services shall be headed by a Director General, appointed according to the procedure indicated in Article 187.
In the conclusion of agreements between the Councils or Boards of Directors and international organizations or institutions or foreign governments, the Executive Power shall specify those cases that will require its prior approval, without prejudice to the powers pertaining to the Legislative Power, as established by Section V.
The services of Posts and Telegraph, Customs and Ports Administrations, and Public Health may not be decentralized in the form of Autonomous Entities, although the law may grant them a degree of autonomy compatible with control by the Executive Power.
Members of Boards of Directors and Directors General who are not elective shall be appointed by the President of the Republic in accord with the Council of Ministers, with the prior consent of the Chamber of Senators, granted on the basis of a proposal indicating the personal, functional, and technical qualifications, by a number of votes equal to three-fifths of the members elected as prescribed by Article 94, Section 1.
If the consent is not given within sixty days after receipt of the request, the Executive Power may make a new proposal or repeat his former request, and in the latter case he must obtain an affirmative vote of an absolute majority of the members of the Chamber of Senators.
By a three-fifths vote of the full membership of each Chamber, a law may establish some other system of appointment.
A three-fifths vote of the full membership of each Chamber shall be required for a law to allow the admission of private capital in the organization or expansion of the assets of Autonomous Entities or Decentralized Services, as well as to regulate the participation in such cases that may pertain to shareholders on Boards of Directors.
The contribution of private capital and its representation on Councils or Boards of Directors shall never be greater than that of the State.
The State may, likewise, participate in the industrial, agricultural, or commercial activities of enterprises formed by workingmen’s contributions, cooperatives, or private capital, if it has the free consent of the enterprise and conditions are previously agreed upon between the parties.
By an absolute majority of the full membership of each Chamber a law may authorize such participation in each case, ensuring participation of the State in the direction of the enterprise. Its Representatives shall be governed by the same rules as are the Directors of Autonomous Entities and Decentralized Services.
The provisions of this Article will not be applicable to the public services of potable water and sanitation.
A two-thirds vote of the full membership of each Chamber shall be required to create new Autonomous Entities and to dissolve those in existence.
The law by three-fifths of the votes of the total of the membership of each Chamber, may declare elective the designation of the members of the Boards of Directors, determining in each case the persons or the Bodies interested in the service, who have effected this election.
The Autonomous Entities and Decentralized Services may not conduct any business foreign to that specifically assigned to them by law, nor may they devote any of their resources to purposes foreign to their normal activities.
The Autonomous Entities, Decentralized Services, and in general all autonomous administrative agencies with their own assets, regardless of their juridical nature, shall publish periodic statements which shall clearly show their financial condition. The law shall specify the content and yearly number thereof and each shall be countersigned by the Tribunal of Accountants.
The members of Boards of Directors or Directors General shall terminate their positions whenever, in accordance with pertinent rules, their successors have been appointed or elected.
Permanent vacancies shall be filled by the procedure established for the initial filling of the respective positions, but the law may provide that alternates may be elected jointly with elected principals and replace the latter in the event of a temporary or permanent vacancy.
A law, enacted by an absolute majority of the full membership of each Chamber, shall regulate the procedure governing temporary vacancies, without prejudice to the provisions of the preceding paragraph.
Persons may be reelected or appointed to another Board of Directors or as another Director General provided their conduct has not been subject to objection by the Tribunal of Accounts by a vote of at least four of its members.
The outgoing Boards of Directors or Directors General must submit an accounting of their work to the Executive Power, after report by the Tribunal of Accounts, without prejudice to liabilities incurred, in accordance with the provisions of Section XIII.
The final decisions of the Autonomous Entities may only be appealed or reviewed before the Contentious-Administrative Tribunal or the Judicial Power, as provided in this Constitution or the laws, without prejudice to the provisions of Articles 197 and 198.
A Social Welfare Bank [Banco de Previsión Social] is created, as an autonomous entity, charged with coordinating state social welfare services and organizing social security, pursuant to the rules to be established by a law which must be enacted within a period of one year.
Its Directors may not be candidates for any elective office until one governmental term has elapsed following their termination, the provisions of Article 201, third paragraph, being applicable in this case.
There shall be a Central Bank of the Republic, which shall be organized as an Autonomous Entity, and it shall have the powers and duties specified in a law approved by an absolute majority of the full membership of each Chamber.
Whenever the Executive Power considers any act of the Boards of Directors or Directors General to be inappropriate or illegal, he may make such objections as are deemed pertinent and he may order the suspension of acts to which he has objected.
Should these objections be disregarded, the Executive Power may order such ramifications, corrections, or removals as the case may demand, communicating this to the Chamber of Senators, which shall render a final decision. Where pertinent, the provisions of the second and third paragraphs of Article 198 shall apply.
The provisions of the preceding article shall not affect authority of the Executive Power to remove members of Boards of Directors or Directors General, with the approval of the Chamber of Senators, in cases of inefficiency, neglect, or malfeasance in the exercise of their functions or for the commission of acts which affect their reputation or the prestige of the institution with which they are connected.
If the Chamber of Senators does not act within a period of sixty days, the Executive Power may effect the removal.
Whenever he deems it necessary, the Executive Power, acting in Council of Ministers, may replace members of Boards of Directors or Directors General, the removal of whom he had requested approval, by members of Boards of Directors or Directors General or other Entities, as interim appointments until the Chamber of Senators has acted.
The dismissals and removals provided for in this and the preceding article shall not give right to any appeal before the Contentious-Administrative Tribunal.
Amendment to the Organic Charter of the State Banks require an absolute majority of the votes of the full membership of each Chamber.
Members of the Boards of Directors or Directors General of the Autonomous Entities or the Decentralized Services may not be appointed to posts, not even to honorary posts, which are directly or indirectly connected with the institution to which they belong. This provision does not include Council Members or Directors of educational services, who may be reelected as teachers or professors and appointed to the post of Dean or to honorary teaching positions.
This inhibition shall be effective for a period of one year following the termination of the functions on which it is based, whatever may be the reason for such termination, and shall include any other post, professional or otherwise, even though not permanent in character nor with fixed remuneration.
Nor may members of Boards of Directors or Directors General of the Autonomous Entities or Decentralized Services simultaneously practice professions or engage in activities which directly or indirectly bear relation to the institution with which they are connected.
The provisions of the two preceding paragraphs are not applicable to teachers.
In order to become candidates as Legislators, members of Boards of Directors or Directors General of the Autonomous Entities and the Decentralized Services must terminate their position at least twelve months prior to the date of the election.
In such cases, the mere presentation of a resignation based on these grounds shall effect an immediate termination of office.
Electoral Organizations shall not certify lists which include candidates who have not complied with this requirement.
Higher, Secondary, Primary, Normal, Industrial and Artistic public education shall be governed by one or more Autonomous Councils of Directors.
Other State teaching services shall also be entrusted to Autonomous Councils of Directors if the law so provides by a two-thirds vote of the full membership of each Chamber.
The Public Education entities shall be consulted by the Parliamentary Committees for advisory purposes, in the drafting of laws relating to their services. Each Chamber may fix a time for such consultations.
The law shall provide for the coordination of education.
The Councils of Directors for teaching services shall be appointed or elected in such manner as may be provided by law by an absolute majority of votes of the full membership of each Chamber.
The Council of Directors of the University of the Republic shall be appointed by the organs of which it is composed, and the Councils of these organs shall be elected by teachers, students, and alumni, in accordance with provisions of a law to be passed by the majority indicated in the preceding paragraph.
The Councils of Directors shall have such powers and duties as may be determined by a law approved by an absolute majority of the full membership of each Chamber.
These Councils shall establish Statutes for their officials in conformity with the bases provided in Articles 58 and 61 and such fundamental rules as the law may provide, taking into consideration the special features of the Entity.
Articles 189, 190, 191, 192, 193, 194, 198 (paragraphs 1 and 2), 200, and 201 shall be applicable, wherever pertinent, to the various educational services.