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[114th Congress Public Law 187]
[From the U.S. Government Publishing Office]

[[Page 130 STAT. 549]]

Public Law 114-187
114th Congress

                                 An Act

 
To reauthorize and amend the National Sea Grant College Program Act, and 
        for other purposes. <<NOTE: June 30, 2016 -  [S. 2328]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Puerto Rico 
Oversight, Management, and Economic Stability Act. 48 USC 2101 note.>> 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Puerto Rico 
Oversight, Management, and Economic Stability Act'' or ``PROMESA''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Effective date.
Sec. 3. Severability.
Sec. 4. Supremacy.
Sec. 5. Definitions.
Sec. 6. Placement.
Sec. 7. Compliance with Federal laws.

       TITLE I--ESTABLISHMENT AND ORGANIZATION OF OVERSIGHT BOARD

Sec. 101. Financial Oversight and Management Board.
Sec. 102. Location of Oversight Board.
Sec. 103. Executive Director and staff of Oversight Board.
Sec. 104. Powers of Oversight Board.
Sec. 105. Exemption from liability for claims.
Sec. 106. Treatment of actions arising from Act.
Sec. 107. Budget and funding for operation of Oversight Board.
Sec. 108. Autonomy of Oversight Board.
Sec. 109. Ethics.

              TITLE II--RESPONSIBILITIES OF OVERSIGHT BOARD

Sec. 201. Approval of fiscal plans.
Sec. 202. Approval of budgets.
Sec. 203. Effect of finding of noncompliance with budget.
Sec. 204. Review of activities to ensure compliance with fiscal plan.
Sec. 205. Recommendations on financial stability and management 
           responsibility.
Sec. 206. Oversight Board duties related to restructuring.
Sec. 207. Oversight Board authority related to debt issuance.
Sec. 208. Required reports.
Sec. 209. Termination of Oversight Board.
Sec. 210. No full faith and credit of the United States.
Sec. 211. Analysis of pensions.
Sec. 212. Intervention in litigation.

                     TITLE III--ADJUSTMENTS OF DEBTS

Sec. 301. Applicability of other laws; definitions.
Sec. 302. Who may be a debtor.
Sec. 303. Reservation of territorial power to control territory and 
           territorial instrumentalities.
Sec. 304. Petition and proceedings relating to petition.
Sec. 305. Limitation on jurisdiction and powers of court.

[[Page 130 STAT. 550]]

Sec. 306. Jurisdiction.
Sec. 307. Venue.
Sec. 308. Selection of presiding judge.
Sec. 309. Abstention.
Sec. 310. Applicable rules of procedure.
Sec. 311. Leases.
Sec. 312. Filing of plan of adjustment.
Sec. 313. Modification of plan.
Sec. 314. Confirmation.
Sec. 315. Role and capacity of Oversight Board.
Sec. 316. Compensation of professionals.
Sec. 317. Interim compensation.

                   TITLE IV--MISCELLANEOUS PROVISIONS

Sec. 401. Rules of construction.
Sec. 402. Right of Puerto Rico to determine its future political status.
Sec. 403. First minimum wage in Puerto Rico.
Sec. 404. Application of regulation to Puerto Rico.
Sec. 405. Automatic stay upon enactment.
Sec. 406. Purchases by territory governments.
Sec. 407. Protection from inter-debtor transfers.
Sec. 408. GAO report on Small Business Administration programs in Puerto 
           Rico.
Sec. 409. Congressional Task Force on Economic Growth in Puerto Rico.
Sec. 410. Report.
Sec. 411. Report on territorial debt.
Sec. 412. Expansion of HUBZones in Puerto Rico.
Sec. 413. Determination on debt.

           TITLE V--PUERTO RICO INFRASTRUCTURE REVITALIZATION

Sec. 501. Definitions.
Sec. 502. Position of Revitalization Coordinator.
Sec. 503. Critical projects.
Sec. 504. Miscellaneous provisions.
Sec. 505. Federal agency requirements.
Sec. 506. Judicial review.
Sec. 507. Savings clause.

                  TITLE VI--CREDITOR COLLECTIVE ACTION

Sec. 601. Creditor Collective action.
Sec. 602. Applicable law.

  TITLE VII--SENSE OF CONGRESS REGARDING PERMANENT, PRO-GROWTH FISCAL 
                                 REFORMS

Sec. 701. Sense of Congress regarding permanent, pro-growth fiscal 
           reforms.

SEC. 2. <<NOTE: 48 USC 2101.>>  EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b), this Act 
shall take effect on the date of the enactment of this Act.
    (b) <<NOTE: Applicability.>>  Title III and Title VI.--
            (1) Title III shall apply with respect to cases commenced 
        under title III on or after the date of the enactment of this 
        Act.
            (2) Titles III and VI shall apply with respect to debts, 
        claims, and liens (as such terms are defined in section 101 of 
        title 11, United States Code) created before, on, or after such 
        date.
SEC. 3. <<NOTE: 48 USC 2102.>>  SEVERABILITY.

    (a) In General.--Except as provided in subsection (b), if any 
provision of this Act or the application thereof to any person or 
circumstance is held invalid, the remainder of this Act, or the 
application of that provision to persons or circumstances other than 
those as to which it is held invalid, is not affected thereby, provided 
that title III is not severable from titles I and II, and titles I and 
II are not severable from title III.
    (b) <<NOTE: Courts.>>  Uniformity.--If a court holds invalid any 
provision of this Act or the application thereof on the ground that the 
provision

[[Page 130 STAT. 551]]

fails to treat similarly situated territories uniformly, then the court 
shall, in granting a remedy, order that the provision of this Act or the 
application thereof be extended to any other similarly situated 
territory, provided that the legislature of that territory adopts a 
resolution signed by the territory's governor requesting the 
establishment and organization of a Financial Oversight and Management 
Board pursuant to section 101.
SEC. 4. <<NOTE: 48 USC 2103.>>  SUPREMACY.

    The provisions of this Act shall prevail over any general or 
specific provisions of territory law, State law, or regulation that is 
inconsistent with this Act.
SEC. 5. <<NOTE: 48 USC 2104.>>  DEFINITIONS.

    In this Act--
            (1) Agreed accounting standards.--The term ``agreed 
        accounting standards'' means modified accrual accounting 
        standards or, for any period during which the Oversight Board 
        determines in its sole discretion that a territorial government 
        is not reasonably capable of comprehensive reporting that 
        complies with modified accrual accounting standards, such other 
        accounting standards as proposed by the Oversight Board.
            (2) Bond.--The term ``Bond'' means a bond, loan, letter of 
        credit, other borrowing title, obligation of insurance, or other 
        financial indebtedness for borrowed money, including rights, 
        entitlements, or obligations whether such rights, entitlements, 
        or obligations arise from contract, statute, or any other source 
        of law, in any case, related to such a bond, loan, letter of 
        credit, other borrowing title, obligation of insurance, or other 
        financial indebtedness in physical or dematerialized form of 
        which the issuer, obligor, or guarantor is the territorial 
        government.
            (3) Bond claim.--The term ``Bond Claim'' means, as it 
        relates to a Bond--
                    (A) right to payment, whether or not such right is 
                reduced to judgment, liquidated, unliquidated, fixed, 
                contingent, matured, unmatured, disputed, undisputed, 
                legal, equitable, secured, or unsecured; or
                    (B) right to an equitable remedy for breach of 
                performance if such breach gives rise to a right to 
                payment, whether or not such right to an equitable 
                remedy is reduced to judgment, fixed, contingent, 
                matured, unmatured, disputed, undisputed, secured, or 
                unsecured.
            (4) Budget.--The term ``Budget'' means the Territory Budget 
        or an Instrumentality Budget, as applicable.
            (5) Puerto rico.--The term ``Puerto Rico'' means the 
        Commonwealth of Puerto Rico.
            (6) Compliant budget.--The term ``compliant budget'' means a 
        budget that is prepared in accordance with--
                    (A) agreed accounting standards; and
                    (B) the applicable Fiscal Plan.
            (7) Covered territorial instrumentality.--The term ``covered 
        territorial instrumentality'' means a territorial 
        instrumentality designated by the Oversight Board pursuant to 
        section 101 to be subject to the requirements of this Act.
            (8) Covered territory.--The term ``covered territory'' means 
        a territory for which an Oversight Board has been established 
        under section 101.

[[Page 130 STAT. 552]]

            (9) Executive director.--The term ``Executive Director'' 
        means an Executive Director appointed under section 103(a).
            (10) Fiscal plan.--The term ``Fiscal Plan'' means a 
        Territory Fiscal Plan or an Instrumentality Fiscal Plan, as 
        applicable.
            (11) Government of puerto rico.--The term ``Government of 
        Puerto Rico'' means the Commonwealth of Puerto Rico, including 
        all its territorial instrumentalities.
            (12) Governor.--The term ``Governor'' means the chief 
        executive of a covered territory.
            (13) Instrumentality budget.--The term ``Instrumentality 
        Budget'' means a budget for a covered territorial 
        instrumentality, designated by the Oversight Board in accordance 
        with section 101, submitted, approved, and certified in 
        accordance with section 202.
            (14) Instrumentality fiscal plan.--The term 
        ``Instrumentality Fiscal Plan'' means a fiscal plan for a 
        covered territorial instrumentality, designated by the Oversight 
        Board in accordance with section 101, submitted, approved, and 
        certified in accordance with section 201.
            (15) Legislature.--The term ``Legislature'' means the 
        legislative body responsible for enacting the laws of a covered 
        territory.
            (16) Modified accrual accounting standards.--The term 
        ``modified accrual accounting standards'' means recognizing 
        revenues as they become available and measurable and recognizing 
        expenditures when liabilities are incurred, in each case as 
        defined by the Governmental Accounting Standards Board, in 
        accordance with generally accepted accounting principles.
            (17) Oversight board.--The term ``Oversight Board'' means a 
        Financial Oversight and Management Board established in 
        accordance with section 101.
            (18) Territorial government.--The term ``territorial 
        government'' means the government of a covered territory, 
        including all covered territorial instrumentalities.
            (19) Territorial instrumentality.--
                    (A) In general.--The term ``territorial 
                instrumentality'' means any political subdivision, 
                public agency, instrumentality--including any 
                instrumentality that is also a bank--or public 
                corporation of a territory, and this term should be 
                broadly construed to effectuate the purposes of this 
                Act.
                    (B) Exclusion.--The term ``territorial 
                instrumentality'' does not include an Oversight Board.
            (20) Territory.--The term ``territory'' means--
                    (A) Puerto Rico;
                    (B) Guam;
                    (C) American Samoa;
                    (D) the Commonwealth of the Northern Mariana 
                Islands; or
                    (E) the United States Virgin Islands.
            (21) Territory budget.--The term ``Territory Budget'' means 
        a budget for a territorial government submitted, approved, and 
        certified in accordance with section 202.

[[Page 130 STAT. 553]]

            (22) Territory fiscal plan.--The term ``Territory Fiscal 
        Plan'' means a fiscal plan for a territorial government 
        submitted, approved, and certified in accordance with section 
        201.
SEC. 6. <<NOTE: 48 USC 2105.>>  PLACEMENT.

    The Law Revision Counsel is directed to place this Act as chapter 20 
of title 48, United States Code.
SEC. 7. <<NOTE: 48 USC 2106.>>  COMPLIANCE WITH FEDERAL LAWS.

    Except as otherwise provided in this Act, nothing in this Act shall 
be construed as impairing or in any manner relieving a territorial 
government, or any territorial instrumentality thereof, from compliance 
with Federal laws or requirements or territorial laws and requirements 
implementing a federally authorized or federally delegated program 
protecting the health, safety, and environment of persons in such 
territory.

       TITLE I--ESTABLISHMENT AND ORGANIZATION OF OVERSIGHT BOARD

SEC. 101. <<NOTE: 48 USC 2121.>>  FINANCIAL OVERSIGHT AND 
                        MANAGEMENT BOARD.

    (a) Purpose.--The purpose of the Oversight Board is to provide a 
method for a covered territory to achieve fiscal responsibility and 
access to the capital markets.
    (b) Establishment.--
            (1) Puerto rico.--A Financial Oversight and Management Board 
        is hereby established for Puerto Rico.
            (2) Constitutional basis.--The Congress enacts this Act 
        pursuant to article IV, section 3 of the Constitution of the 
        United States, which provides Congress the power to dispose of 
        and make all needful rules and regulations for territories.

    (c) Treatment.--An Oversight Board established under this section--
            (1) shall be created as an entity within the territorial 
        government for which it is established in accordance with this 
        title; and
            (2) shall not be considered to be a department, agency, 
        establishment, or instrumentality of the Federal Government.

    (d) Oversight of Territorial Instrumentalities.--
            (1) Designation.--
                    (A) In general.--An Oversight Board, in its sole 
                discretion at such time as the Oversight Board 
                determines to be appropriate, may designate any 
                territorial instrumentality as a covered territorial 
                instrumentality that is subject to the requirements of 
                this Act.
                    (B) Budgets and reports.--The Oversight Board may 
                require, in its sole discretion, the Governor to submit 
                to the Oversight Board such budgets and monthly or 
                quarterly reports regarding a covered territorial 
                instrumentality as the Oversight Board determines to be 
                necessary and may designate any covered territorial 
                instrumentality to be included in the Territory Budget; 
                except that the Oversight Board may not designate a 
                covered territorial instrumentality to be included in 
                the Territory Budget if applicable territory law does 
                not require legislative approval of such covered 
                territorial instrumentality's budget.

[[Page 130 STAT. 554]]

                    (C) Separate instrumentality budgets and reports.--
                The Oversight Board in its sole discretion may or, if it 
                requires a budget from a covered territorial 
                instrumentality whose budget does not require 
                legislative approval under applicable territory law, 
                shall designate a covered territorial instrumentality to 
                be the subject of an Instrumentality Budget separate 
                from the applicable Territory Budget and require that 
                the Governor develop such an Instrumentality Budget.
                    (D) Inclusion in territory fiscal plan.--The 
                Oversight Board may require, in its sole discretion, the 
                Governor to include a covered territorial 
                instrumentality in the applicable Territory Fiscal Plan. 
                Any covered territorial instrumentality submitting a 
                separate Instrumentality Fiscal Plan must also submit a 
                separate Instrumentality Budget.
                    (E) Separate instrumentality fiscal plans.--The 
                Oversight Board may designate, in its sole discretion, a 
                covered territorial instrumentality to be the subject of 
                an Instrumentality Fiscal Plan separate from the 
                applicable Territory Fiscal Plan and require that the 
                Governor develop such an Instrumentality Fiscal Plan. 
                Any covered territorial instrumentality submitting a 
                separate Instrumentality Fiscal Plan shall also submit a 
                separate Instrumentality Budget.
            (2) Exclusion.--
                    (A) In general.--An Oversight Board, in its sole 
                discretion, at such time as the Oversight Board 
                determines to be appropriate, may exclude any 
                territorial instrumentality from the requirements of 
                this Act.
                    (B) Treatment.--A territorial instrumentality 
                excluded pursuant to this paragraph shall not be 
                considered to be a covered territorial instrumentality.

    (e) Membership.--
            (1) In general.--
                    (A) <<NOTE: President.>>  The Oversight Board shall 
                consist of seven members appointed by the President who 
                meet the qualifications described in subsection (f) and 
                section 109(a).
                    (B) The Board shall be comprised of one Category A 
                member, one Category B member, two Category C members, 
                one Category D member, one Category E member, and one 
                Category F member.
            (2) Appointed members.--
                    (A) <<NOTE: President.>>  The President shall 
                appoint the individual members of the Oversight Board, 
                of which--
                          (i) the Category A member should be selected 
                      from a list of individuals submitted by the 
                      Speaker of the House of Representatives;
                          (ii) the Category B member should be selected 
                      from a separate, non-overlapping list of 
                      individuals submitted by the Speaker of the House 
                      of Representatives;
                          (iii) the Category C members should be 
                      selected from a list submitted by the Majority 
                      Leader of the Senate;

[[Page 130 STAT. 555]]

                          (iv) the Category D member should be selected 
                      from a list submitted by the Minority Leader of 
                      the House of Representatives;
                          (v) the Category E member should be selected 
                      from a list submitted by the Minority Leader of 
                      the Senate; and
                          (vi) the Category F member may be selected in 
                      the President's sole discretion.
                    (B) <<NOTE: Lists.>>  After the President's 
                selection of the Category F Board member, for purposes 
                of subparagraph (A) and within a timely manner--
                          (i) the Speaker of the House of 
                      Representatives shall submit two non-overlapping 
                      lists of at least three individuals to the 
                      President; one list shall include three 
                      individuals who maintain a primary residence in 
                      the territory or have a primary place of business 
                      in the territory;
                          (ii) the Senate Majority Leader shall submit a 
                      list of at least four individuals to the 
                      President;
                          (iii) the Minority Leader of the House of 
                      Representatives shall submit a list of at least 
                      three individuals to the President; and
                          (iv) the Minority Leader of the Senate shall 
                      submit a list of at least three individuals to the 
                      President.
                    (C) If the President does not select any of the 
                names submitted under subparagraphs (A) and (B), then 
                whoever submitted such list may supplement the lists 
                provided in this subsection with additional names.
                    (D) The Category A member shall maintain a primary 
                residence in the territory or have a primary place of 
                business in the territory.
                    (E) <<NOTE: President.>>  With respect to the 
                appointment of a Board member in Category A, B, C, D, or 
                E, such an appointment shall be by and with the advice 
                and consent of the Senate, unless the President appoints 
                an individual from a list, as provided in this 
                subsection, in which case no Senate confirmation is 
                required.
                    (F) <<NOTE: List.>>  In the event of a vacancy of a 
                Category A, B, C, D, or E Board seat, the corresponding 
                congressional leader referenced in subparagraph (A) 
                shall submit a list pursuant to this subsection within a 
                timely manner of the Board member's resignation or 
                removal becoming effective.
                    (G) <<NOTE: Deadlines. Appointments. President.>>  
                With respect to an Oversight Board for Puerto Rico, in 
                the event any of the 7 members have not been appointed 
                by September 1, 2016, then the President shall appoint 
                an individual from the list for the current vacant 
                category by September 15, 2016, provided that such list 
                includes at least 2 individuals per vacancy who meet the 
                requirements set forth in subsection (f) and section 
                109, and are willing to serve.
            (3) Ex officio member.--The Governor, or the Governor's 
        designee, shall be an ex officio member of the Oversight Board 
        without voting rights.
            (4) <<NOTE: Deadline.>>  Chair.--The voting members of the 
        Oversight Board shall designate one of the voting members of the 
        Oversight Board as the Chair of the Oversight Board (referred to 
        hereafter

[[Page 130 STAT. 556]]

        in this Act as the ``Chair'') within 30 days of the full 
        appointment of the Oversight Board.
            (5) Term of service.--
                    (A) In general.--Each appointed member of the 
                Oversight Board shall be appointed for a term of 3 
                years.
                    (B) Removal.--The President may remove any member of 
                the Oversight Board only for cause.
                    (C) Continuation of service until successor 
                appointed.--Upon the expiration of a term of office, a 
                member of the Oversight Board may continue to serve 
                until a successor has been appointed.
                    (D) Reappointment.--An individual may serve 
                consecutive terms as an appointed member, provided that 
                such reappointment occurs in compliance with paragraph 
                (6).
            (6) Vacancies.--A vacancy on the Oversight Board shall be 
        filled in the same manner in which the original member was 
        appointed.

    (f) Eligibility for Appointments.--An individual is eligible for 
appointment as a member of the Oversight Board only if the individual--
            (1) has knowledge and expertise in finance, municipal bond 
        markets, management, law, or the organization or operation of 
        business or government; and
            (2) prior to appointment, an individual is not an officer, 
        elected official, or employee of the territorial government, a 
        candidate for elected office of the territorial government, or a 
        former elected official of the territorial government.

    (g) No Compensation for Service.--Members of the Oversight Board 
shall serve without pay, but may receive reimbursement from the 
Oversight Board for any reasonable and necessary expenses incurred by 
reason of service on the Oversight Board.
    (h) Adoption of Bylaws for Conducting Business of Oversight Board.--
            (1) <<NOTE: Regulations. Procedures.>>  In general.--As soon 
        as practicable after the appointment of all members and 
        appointment of the Chair, the Oversight Board shall adopt 
        bylaws, rules, and procedures governing its activities under 
        this Act, including procedures for hiring experts and 
        consultants. <<NOTE: Public information.>>  Such bylaws, rules, 
        and procedures shall be public documents, and shall be submitted 
        by the Oversight Board upon adoption to the Governor, the 
        Legislature, the President, and Congress. The Oversight Board 
        may hire professionals as it determines to be necessary to carry 
        out this Act.
            (2) Activities requiring approval of majority of members.--
        Under the bylaws adopted pursuant to paragraph (1), the 
        Oversight Board may conduct its operations under such procedures 
        as it considers appropriate, except that an affirmative vote of 
        a majority of the members of the Oversight Board's full 
        appointed membership shall be required in order for the 
        Oversight Board to approve a Fiscal Plan under section 201, to 
        approve a Budget under section 202, to cause a legislative act 
        not to be enforced under section 204, or to approve or 
        disapprove an infrastructure project as a Critical Project under 
        section 503.
            (3) Adoption of rules and regulations of territorial 
        government.--The Oversight Board may incorporate in its

[[Page 130 STAT. 557]]

        bylaws, rules, and procedures under this subsection such rules 
        and regulations of the territorial government as it considers 
        appropriate to enable it to carry out its activities under this 
        Act with the greatest degree of independence practicable.
            (4) Executive session.--Upon a majority vote of the 
        Oversight Board's full voting membership, the Oversight Board 
        may conduct its business in an executive session that consists 
        solely of the Oversight Board's voting members and any 
        professionals the Oversight Board determines necessary and is 
        closed to the public, but only for the business items set forth 
        as part of the vote to convene an executive session.
SEC. 102. <<NOTE: 48 USC 2122.>>  LOCATION OF OVERSIGHT BOARD.

    The Oversight Board shall have an office in the covered territory 
and additional offices as it deems necessary. At any time, any 
department or agency of the United States may provide the Oversight 
Board use of Federal facilities and equipment on a reimbursable or non-
reimbursable basis and subject to such terms and conditions as the head 
of that department or agency may establish.
SEC. 103. <<NOTE: 48 USC 2123.>>  EXECUTIVE DIRECTOR AND STAFF OF 
                        OVERSIGHT BOARD.

    (a) <<NOTE: Appointment.>>  Executive Director.--The Oversight Board 
shall have an Executive Director who shall be appointed by the Chair 
with the consent of the Oversight Board. The Executive Director shall be 
paid at a rate determined by the Oversight Board.

    (b) Staff.--With the approval of the Chair, the Executive Director 
may appoint and fix the pay of additional personnel as the Executive 
Director considers appropriate, except that no individual appointed by 
the Executive Director may be paid at a rate greater than the rate of 
pay for the Executive Director unless the Oversight Board provides for 
otherwise. <<NOTE: Appointment.>>  The staff shall include a 
Revitalization Coordinator appointed pursuant to Title V of this Act. 
Any such personnel may include private citizens, employees of the 
Federal Government, or employees of the territorial government, 
provided, however, that the Executive Director may not fix the pay of 
employees of the Federal Government or the territorial government.

    (c) Inapplicability of Certain Employment and Procurement Laws.--The 
Executive Director and staff of the Oversight Board may be appointed and 
paid without regard to any provision of the laws of the covered 
territory or the Federal Government governing appointments and salaries. 
Any provision of the laws of the covered territory governing procurement 
shall not apply to the Oversight Board.
    (d) Staff of Federal Agencies.--Upon request of the Chair, the head 
of any Federal department or agency may detail, on a reimbursable or 
nonreimbursable basis, and in accordance with the Intergovernmental 
Personnel Act of 1970 (5 U.S.C. 3371-3375), any of the personnel of that 
department or agency to the Oversight Board to assist it in carrying out 
its duties under this Act.
    (e) Staff of Territorial Government.--Upon request of the Chair, the 
head of any department or agency of the covered territory may detail, on 
a reimbursable or nonreimbursable basis, any of the personnel of that 
department or agency to the Oversight Board to assist it in carrying out 
its duties under this Act.

[[Page 130 STAT. 558]]

SEC. 104. <<NOTE: 48 USC 2124.>>  POWERS OF OVERSIGHT BOARD.

    (a) Hearings and Sessions.--The Oversight Board may, for the purpose 
of carrying out this Act, hold hearings, sit and act at times and 
places, take testimony, and receive evidence as the Oversight Board 
considers appropriate. The Oversight Board may administer oaths or 
affirmations to witnesses appearing before it.
    (b) Powers of Members and Agents.--Any member or agent of the 
Oversight Board may, if authorized by the Oversight Board, take any 
action that the Oversight Board is authorized to take by this section.
    (c) Obtaining Official Data.--
            (1) From federal government.--Notwithstanding sections 552 
        (commonly known as the Freedom of Information Act), 552a 
        (commonly known as the Privacy Act of 1974), and 552b (commonly 
        known as the Government in the Sunshine Act) of title 5, United 
        States Code, the Oversight Board may secure directly from any 
        department or agency of the United States information necessary 
        to enable it to carry out this Act, with the approval of the 
        head of that department or agency.
            (2) From territorial government.--Notwithstanding any other 
        provision of law, the Oversight Board shall have the right to 
        secure copies, whether written or electronic, of such records, 
        documents, information, data, or metadata from the territorial 
        government necessary to enable the Oversight Board to carry out 
        its responsibilities under this Act. At the request of the 
        Oversight Board, the Oversight Board shall be granted direct 
        access to such information systems, records, documents, 
        information, or data as will enable the Oversight Board to carry 
        out its responsibilities under this Act. The head of the entity 
        of the territorial government responsible shall provide the 
        Oversight Board with such information and assistance (including 
        granting the Oversight Board direct access to automated or other 
        information systems) as the Oversight Board requires under this 
        paragraph.

    (d) Obtaining Creditor Information.--
            (1) <<NOTE: Public information.>>  Upon request of the 
        Oversight Board, each creditor or organized group of creditors 
        of a covered territory or covered territorial instrumentality 
        seeking to participate in voluntary negotiations shall provide 
        to the Oversight Board, and the Oversight Board shall make 
        publicly available to any other participant, a statement setting 
        forth--
                    (A) the name and address of the creditor or of each 
                member of an organized group of creditors; and
                    (B) the nature and aggregate amount of claims or 
                other economic interests held in relation to the issuer 
                as of the later of--
                          (i) the date the creditor acquired the claims 
                      or other economic interests or, in the case of an 
                      organized group of creditors, the date the group 
                      was formed; or
                          (ii) the date the Oversight Board was formed.
            (2) <<NOTE: Definition.>>  For purposes of this subsection, 
        an organized group shall mean multiple creditors that are--
                    (A) acting in concert to advance their common 
                interests, including, but not limited to, retaining 
                legal counsel to represent such multiple entities; and

[[Page 130 STAT. 559]]

                    (B) not composed entirely of affiliates or insiders 
                of one another.
            (3) The Oversight Board may request supplemental statements 
        to be filed by each creditor or organized group of creditors 
        quarterly, or if any fact in the most recently filed statement 
        has changed materially.

    (e) Gifts, Bequests, and Devises.--The Oversight Board may accept, 
use, and dispose of gifts, bequests, or devises of services or property, 
both real and personal, for the purpose of aiding or facilitating the 
work of the Oversight Board. Gifts, bequests, or devises of money and 
proceeds from sales of other property received as gifts, bequests, or 
devises shall be deposited in such account as the Oversight Board may 
establish and shall be available for disbursement upon order of the 
Chair, consistent with the Oversight Board's bylaws, or rules and 
procedures. <<NOTE: Public information. Deadline.>>  All gifts, bequests 
or devises and the identities of the donors shall be publicly disclosed 
by the Oversight Board within 30 days of receipt.

    (f) Subpoena Power.--
            (1) In general.--The Oversight Board may issue subpoenas 
        requiring the attendance and testimony of witnesses and the 
        production of books, records, correspondence, memoranda, papers, 
        documents, electronic files, metadata, tapes, and materials of 
        any nature relating to any matter under investigation by the 
        Oversight Board. Jurisdiction to compel the attendance of 
        witnesses and the production of such materials shall be governed 
        by the statute setting forth the scope of personal jurisdiction 
        exercised by the covered territory, or in the case of Puerto 
        Rico, 32 L.P.R.A. App. III. R. 4. 7., as amended.
            (2) Failure to obey a subpoena.--If a person refuses to obey 
        a subpoena issued under paragraph (1), the Oversight Board may 
        apply to the court of first instance of the covered territory. 
        Any failure to obey the order of the court may be punished by 
        the court in accordance with civil contempt laws of the covered 
        territory.
            (3) Service of subpoenas.--The subpoena of the Oversight 
        Board shall be served in the manner provided by the rules of 
        procedure for the courts of the covered territory, or in the 
        case of Puerto Rico, the Rules of Civil Procedure of Puerto 
        Rico, for subpoenas issued by the court of first instance of the 
        covered territory.

    (g) Authority To Enter Into Contracts.--The Executive Director may 
enter into such contracts as the Executive Director considers 
appropriate (subject to the approval of the Chair) consistent with the 
Oversight Board's bylaws, rules, and regulations to carry out the 
Oversight Board's responsibilities under this Act.
    (h) Authority To Enforce Certain Laws of the Covered Territory.--The 
Oversight Board shall ensure the purposes of this Act are met, including 
by ensuring the prompt enforcement of any applicable laws of the covered 
territory prohibiting public sector employees from participating in a 
strike or lockout. In the application of this subsection, with respect 
to Puerto Rico, the term ``applicable laws'' refers to 3 L.P.R.A. 1451q 
and 3 L.P.R.A. 1451r, as amended.
    (i) Voluntary Agreement Certification.--
            (1) <<NOTE: Determination.>>  In general.--The Oversight 
        Board shall issue a certification to a covered territory or 
        covered territorial instrumentality if the Oversight Board 
        determines, in its sole discretion,

[[Page 130 STAT. 560]]

        that such covered territory or covered territorial 
        instrumentality, as applicable, has successfully reached a 
        voluntary agreement with holders of its Bond Claims to 
        restructure such Bond Claims--
                    (A) except as provided in subparagraph (C), if an 
                applicable Fiscal Plan has been certified, in a manner 
                that provides for a sustainable level of debt for such 
                covered territory or covered territorial 
                instrumentality, as applicable, and is in conformance 
                with the applicable certified Fiscal Plan;
                    (B) except as provided in subparagraph (C), if an 
                applicable Fiscal Plan has not yet been certified, in a 
                manner that provides, in the Oversight Board's sole 
                discretion, for a sustainable level of debt for such 
                covered territory or covered territorial 
                instrumentality; or
                    (C) notwithstanding subparagraphs (A) and (B), if an 
                applicable Fiscal Plan has not yet been certified and 
                the voluntary agreement is limited solely to an 
                extension of applicable principal maturities and 
                interest on Bonds issued by such covered territory or 
                covered territorial instrumentality, as applicable, for 
                a period of up to one year during which time no interest 
                will be paid on the Bond Claims affected by the 
                voluntary agreement.
            (2) Effectiveness.--The effectiveness of any voluntary 
        agreement referred to in paragraph (1) shall be conditioned on--
                    (A) the Oversight Board delivering the certification 
                described in paragraph (1); and
                    (B) the agreement of a majority in amount of the 
                Bond Claims of a covered territory or a covered 
                territorial instrumentality that are to be affected by 
                such agreement, provided, however, that such agreement 
                is solely for purposes of serving as a Qualifying 
                Modification pursuant to subsection 601(g) of this Act 
                and shall not alter existing legal rights of holders of 
                Bond Claims against such covered territory or covered 
                territorial instrumentality that have not assented to 
                such agreement until an order approving the Qualifying 
                Modification has been entered pursuant to section 
                601(m)(1)(D) of this Act.
            (3) <<NOTE: Deadline.>>  Preexisting voluntary agreements.--
        Any voluntary agreement that the territorial government or any 
        territorial instrumentality has executed before May 18, 2016, 
        with holders of a majority in amount of Bond Claims that are to 
        be affected by such agreement to restructure such Bond Claims 
        shall be deemed to be in conformance with the requirements of 
        this subsection.

    (j) Restructuring Filings.--
            (1) <<NOTE: Certification.>>  In general.--Subject to 
        paragraph (3), before taking an action described in paragraph 
        (2) on behalf of a debtor or potential debtor in a case under 
        title III, the Oversight Board must certify the action.
            (2) Actions described.--The actions referred to in paragraph 
        (1) are--
                    (A) the filing of a petition; or
                    (B) the submission or modification of a plan of 
                adjustment.

[[Page 130 STAT. 561]]

            (3) <<NOTE: Determination.>>  Condition for plans of 
        adjustment.--The Oversight Board may certify a plan of 
        adjustment only if it determines, in its sole discretion, that 
        it is consistent with the applicable certified Fiscal Plan.

    (k) Civil Actions To Enforce Powers.--The Oversight Board may seek 
judicial enforcement of its authority to carry out its responsibilities 
under this Act.
    (l) Penalties.--
            (1) Acts prohibited.--Any officer or employee of the 
        territorial government who prepares, presents, or certifies any 
        information or report for the Oversight Board or any of its 
        agents that is intentionally false or misleading, or, upon 
        learning that any such information is false or misleading, fails 
        to immediately advise the Oversight Board or its agents thereof 
        in writing, shall be subject to prosecution and penalties under 
        any laws of the territory prohibiting the provision of false 
        information to government officials, which in the case of Puerto 
        Rico shall include 33 L.P.R.A. 4889, as amended.
            (2) Administrative discipline.--In addition to any other 
        applicable penalty, any officer or employee of the territorial 
        government who knowingly and willfully violates paragraph (1) or 
        takes any such action in violation of any valid order of the 
        Oversight Board or fails or refuses to take any action required 
        by any such order, shall be subject to appropriate 
        administrative discipline, including (when appropriate) 
        suspension from duty without pay or removal from office, by 
        order of the Governor.
            (3) Report by governor on disciplinary actions taken.--In 
        the case of a violation of paragraph (2) by an officer or 
        employee of the territorial government, the Governor shall 
        immediately report to the Oversight Board all pertinent facts 
        together with a statement of the action taken thereon.

    (m) <<NOTE: Consultation.>>  Electronic Reporting.--The Oversight 
Board may, in consultation with the Governor, ensure the prompt and 
efficient payment and administration of taxes through the adoption of 
electronic reporting, payment and auditing technologies.

    (n) Administrative Support Services.--Upon the request of the 
Oversight Board, the Administrator of General Services or other 
appropriate Federal agencies shall promptly provide to the Oversight 
Board, on a reimbursable or non-reimbursable basis, the administrative 
support services necessary for the Oversight Board to carry out its 
responsibilities under this Act.
    (o) Investigation of Disclosure and Selling Practices.--The 
Oversight Board may investigate the disclosure and selling practices in 
connection with the purchase of bonds issued by a covered territory for 
or on behalf of any retail investors including any underrepresentation 
of risk for such investors and any relationships or conflicts of 
interest maintained by such broker, dealer, or investment adviser is as 
provided in applicable laws and regulations.
    (p) <<NOTE: Public information.>>  Findings of Any Investigation.--
The Oversight Board shall make public the findings of any investigation 
referenced in subsection (o).
SEC. 105. <<NOTE: 48 USC 2125.>>  EXEMPTION FROM LIABILITY FOR 
                        CLAIMS.

    The Oversight Board, its members, and its employees shall not be 
liable for any obligation of or claim against the Oversight

[[Page 130 STAT. 562]]

Board or its members or employees or the territorial government 
resulting from actions taken to carry out this Act.
SEC. 106. <<NOTE: Courts. 48 USC 2126.>>  TREATMENT OF ACTIONS 
                        ARISING FROM ACT.

    (a) Jurisdiction.--Except as provided in section 104(f)(2) (relating 
to the issuance of an order enforcing a subpoena), and title III 
(relating to adjustments of debts), any action against the Oversight 
Board, and any action otherwise arising out of this Act, in whole or in 
part, shall be brought in a United States district court for the covered 
territory or, for any covered territory that does not have a district 
court, in the United States District Court for the District of Hawaii.
    (b) Appeal.--Notwithstanding any other provision of law, any order 
of a United States district court that is issued pursuant to an action 
brought under subsection (a) shall be subject to review only pursuant to 
a notice of appeal to the applicable United States Court of Appeals.
    (c) Timing of Relief.--Except with respect to any orders entered to 
remedy constitutional violations, no order of any court granting 
declaratory or injunctive relief against the Oversight Board, including 
relief permitting or requiring the obligation, borrowing, or expenditure 
of funds, shall take effect during the pendency of the action before 
such court, during the time appeal may be taken, or (if appeal is taken) 
during the period before the court has entered its final order disposing 
of such action.
    (d) Expedited Consideration.--It shall be the duty of the applicable 
United States District Court, the applicable United States Court of 
Appeals, and, as applicable, the Supreme Court of the United States to 
advance on the docket and to expedite to the greatest possible extent 
the disposition of any matter brought under this Act.
    (e) Review of Oversight Board Certifications.--There shall be no 
jurisdiction in any United States district court to review challenges to 
the Oversight Board's certification determinations under this Act.
SEC. 107. <<NOTE: 48 USC 2127.>>  BUDGET AND FUNDING FOR OPERATION 
                        OF OVERSIGHT BOARD.

    (a) <<NOTE: Deadline.>>  Submission of Budget.--The Oversight Board 
shall submit a budget for each fiscal year during which the Oversight 
Board is in operation, to the President, the House of Representatives 
Committee on Natural Resources and the Senate Committee on Energy and 
Natural Resources, the Governor, and the Legislature.

    (b) Funding.--The Oversight Board shall use its powers with respect 
to the Territory Budget of the covered territory to ensure that 
sufficient funds are available to cover all expenses of the Oversight 
Board.
            (1) Permanent funding.--Within 30 days after the date of 
        enactment of this Act, the territorial government shall 
        designate a dedicated funding source, not subject to subsequent 
        legislative appropriations, sufficient to support the annual 
        expenses of the Oversight Board as determined in the Oversight 
        Board's sole and exclusive discretion.
            (2)(A) Initial funding.--On the date of establishment of an 
        Oversight Board in accordance with section 101(b) and on the 5th 
        day of each month thereafter, the Governor of the covered 
        territory shall transfer or cause to be transferred the greater 
        of $2,000,000 or such amount as shall be determined

[[Page 130 STAT. 563]]

        by the Oversight Board pursuant to subsection (a) to a new 
        account established by the territorial government, which shall 
        be available to and subject to the exclusive control of the 
        Oversight Board, without any legislative appropriations of the 
        territorial government.
            (B) Termination.--The initial funding requirements under 
        subparagraph (A) shall terminate upon the territorial government 
        designating a dedicated funding source not subject to subsequent 
        legislative appropriations under paragraph (1).
            (3) <<NOTE: Determination.>>  Remission of excess funds.--If 
        the Oversight Board determines in its sole discretion that any 
        funds transferred under this subsection exceed the amounts 
        required for the Oversight Board's operations as established 
        pursuant to subsection (a), any such excess funds shall be 
        periodically remitted to the territorial government.
SEC. 108. <<NOTE: 48 USC 2128.>>  AUTONOMY OF OVERSIGHT BOARD.

    (a) In General.--Neither the Governor nor the Legislature may--
            (1) exercise any control, supervision, oversight, or review 
        over the Oversight Board or its activities; or
            (2) enact, implement, or enforce any statute, resolution, 
        policy, or rule that would impair or defeat the purposes of this 
        Act, as determined by the Oversight Board.

    (b) Oversight Board Legal Representation.--In any action brought by, 
on behalf of, or against the Oversight Board, the Oversight Board shall 
be represented by such counsel as it may hire or retain so long as the 
representation complies with the applicable professional rules of 
conduct governing conflicts of interests.
SEC. 109. <<NOTE: 48 USC 2129.>>  ETHICS.

    (a) Conflict of Interest.--Notwithstanding any ethics provision 
governing employees of the covered territory, all members and staff of 
the Oversight Board shall be subject to the Federal conflict of interest 
requirements described in section 208 of title 18, United States Code.
    (b) Financial Disclosure.--Notwithstanding any ethics provision 
governing employees of the covered territory, all members of the 
Oversight Board and staff designated by the Oversight Board shall be 
subject to disclosure of their financial interests, the contents of 
which shall conform to the same requirements set forth in section 102 of 
the Ethics in Government Act of 1978 (5 U.S.C. App.).

              TITLE II--RESPONSIBILITIES OF OVERSIGHT BOARD

SEC. 201. <<NOTE: 48 USC 2141.>>  APPROVAL OF FISCAL PLANS.

    (a) <<NOTE: Notice.>>  In General.--As soon as practicable after all 
of the members and the Chair have been appointed to the Oversight Board 
in accordance with section 101(e) in the fiscal year in which the 
Oversight Board is established, and in each fiscal year thereafter 
during which the Oversight Board is in operation, the Oversight Board 
shall deliver a notice to the Governor providing a schedule for the 
process of development, submission, approval, and certification of 
Fiscal Plans. The notice may also set forth a schedule for revisions to 
any Fiscal Plan that has already been certified,

[[Page 130 STAT. 564]]

which revisions must be subject to subsequent approval and certification 
by the Oversight Board. <<NOTE: Consultation.>>  The Oversight Board 
shall consult with the Governor in establishing a schedule, but the 
Oversight Board shall retain sole discretion to set or, by delivery of a 
subsequent notice to the Governor, change the dates of such schedule as 
it deems appropriate and reasonably feasible.

    (b) Requirements.--
            (1) In general.--A Fiscal Plan developed under this section 
        shall, with respect to the territorial government or covered 
        territorial instrumentality, provide a method to achieve fiscal 
        responsibility and access to the capital markets, and--
                    (A) <<NOTE: Estimate.>>  provide for estimates of 
                revenues and expenditures in conformance with agreed 
                accounting standards and be based on--
                          (i) applicable laws; or
                          (ii) specific bills that require enactment in 
                      order to reasonably achieve the projections of the 
                      Fiscal Plan;
                    (B) ensure the funding of essential public services;
                    (C) provide adequate funding for public pension 
                systems;
                    (D) provide for the elimination of structural 
                deficits;
                    (E) for fiscal years covered by a Fiscal Plan in 
                which a stay under titles III or IV is not effective, 
                provide for a debt burden that is sustainable;
                    (F) improve fiscal governance, accountability, and 
                internal controls;
                    (G) enable the achievement of fiscal targets;
                    (H) create independent forecasts of revenue for the 
                period covered by the Fiscal Plan;
                    (I) <<NOTE: Analysis.>>  include a debt 
                sustainability analysis;
                    (J) provide for capital expenditures and investments 
                necessary to promote economic growth;
                    (K) <<NOTE: Recommenda- tions.>>  adopt appropriate 
                recommendations submitted by the Oversight Board under 
                section 205(a);
                    (L) include such additional information as the 
                Oversight Board deems necessary;
                    (M) ensure that assets, funds, or resources of a 
                territorial instrumentality are not loaned to, 
                transferred to, or otherwise used for the benefit of a 
                covered territory or another covered territorial 
                instrumentality of a covered territory, unless permitted 
                by the constitution of the territory, an approved plan 
                of adjustment under title III, or a Qualifying 
                Modification approved under title VI; and
                    (N) respect the relative lawful priorities or lawful 
                liens, as may be applicable, in the constitution, other 
                laws, or agreements of a covered territory or covered 
                territorial instrumentality in effect prior to the date 
                of enactment of this Act.
            (2) Term.--A Fiscal Plan developed under this section shall 
        cover a period of fiscal years as determined by the Oversight 
        Board in its sole discretion but in any case a period of not 
        less than 5 fiscal years from the fiscal year in which it is 
        certified by the Oversight Board.

    (c) Development, Review, Approval, and Certification of Fiscal 
Plans.--
            (1) Timing requirement.--The Governor may not submit to the 
        Legislature a Territory Budget under section 202 for

[[Page 130 STAT. 565]]

        a fiscal year unless the Oversight Board has certified the 
        Territory Fiscal Plan for that fiscal year in accordance with 
        this subsection, unless the Oversight Board in its sole 
        discretion waives this requirement.
            (2) Fiscal plan developed by governor.--The Governor shall 
        submit to the Oversight Board any proposed Fiscal Plan required 
        by the Oversight Board by the time specified in the notice 
        delivered under subsection (a).
            (3) <<NOTE: Determination.>>  Review by the oversight 
        board.--The Oversight Board shall review any proposed Fiscal 
        Plan to determine whether it satisfies the requirements set 
        forth in subsection (b) and, if the Oversight Board determines 
        in its sole discretion that the proposed Fiscal Plan--
                    (A) satisfies such requirements, the Oversight Board 
                shall approve the proposed Fiscal Plan; or
                    (B) does not satisfy such requirements, the 
                Oversight Board shall provide to the Governor--
                          (i) <<NOTE: Notice. Recommenda- tions.>>  a 
                      notice of violation that includes recommendations 
                      for revisions to the applicable Fiscal Plan; and
                          (ii) an opportunity to correct the violation 
                      in accordance with subsection (d)(1).

    (d) Revised Fiscal Plan.--
            (1) In general.--If the Governor receives a notice of 
        violation under subsection (c)(3), the Governor shall submit to 
        the Oversight Board a revised proposed Fiscal Plan in accordance 
        with subsection (b) by the time specified in the notice 
        delivered under subsection (a). The Governor may submit as many 
        revised Fiscal Plans to the Oversight Board as the schedule 
        established in the notice delivered under subsection (a) 
        permits.
            (2) Development by oversight board.--If the Governor fails 
        to submit to the Oversight Board a Fiscal Plan that the 
        Oversight Board determines in its sole discretion satisfies the 
        requirements set forth in subsection (b) by the time specified 
        in the notice delivered under subsection (a), the Oversight 
        Board shall develop and submit to the Governor and the 
        Legislature a Fiscal Plan that satisfies the requirements set 
        forth in subsection (b).

    (e) Approval and Certification.--
            (1) Approval of fiscal plan developed by governor.--If the 
        Oversight Board approves a Fiscal Plan under subsection (c)(3), 
        it shall deliver a compliance certification for such Fiscal Plan 
        to the Governor and the Legislature.
            (2) Deemed approval of fiscal plan developed by oversight 
        board.--If the Oversight Board develops a Fiscal Plan under 
        subsection (d)(2), such Fiscal Plan shall be deemed approved by 
        the Governor, and the Oversight Board shall issue a compliance 
        certification for such Fiscal Plan to the Governor and the 
        Legislature.

    (f) Joint Development of Fiscal Plan.--Notwithstanding any other 
provision of this section, if the Governor and the Oversight Board 
jointly develop a Fiscal Plan for the fiscal year that meets the 
requirements under this section, and that the Governor and the Oversight 
Board certify that the fiscal plan reflects a consensus between the 
Governor and the Oversight Board, then such Fiscal Plan shall serve as 
the Fiscal Plan for the territory or territorial instrumentality for 
that fiscal year.

[[Page 130 STAT. 566]]

SEC. 202. <<NOTE: 48 USC 2142.>>  APPROVAL OF BUDGETS.

    (a) <<NOTE: Notice. Certification. Time periods. Determination.>>  
Reasonable Schedule for Development of Budgets.--As soon as practicable 
after all of the members and the Chair have been appointed to the 
Oversight Board in the fiscal year in which the Oversight Board is 
established, and in each fiscal year thereafter during which the 
Oversight Board is in operation, the Oversight Board shall deliver a 
notice to the Governor and the Legislature providing a schedule for 
developing, submitting, approving, and certifying Budgets for a period 
of fiscal years as determined by the Oversight Board in its sole 
discretion but in any case a period of not less than one fiscal year 
following the fiscal year in which the notice is delivered. The notice 
may also set forth a schedule for revisions to Budgets that have already 
been certified, which revisions must be subject to subsequent approval 
and certification by the Oversight Board. <<NOTE: Consultation.>>  The 
Oversight Board shall consult with the Governor and the Legislature in 
establishing a schedule, but the Oversight Board shall retain sole 
discretion to set or, by delivery of a subsequent notice to the Governor 
and the Legislature, change the dates of such schedule as it deems 
appropriate and reasonably feasible.

    (b) Revenue Forecast.--The Oversight Board shall submit to the 
Governor and Legislature a forecast of revenues for the period covered 
by the Budgets by the time specified in the notice delivered under 
subsection (a), for use by the Governor in developing the Budget under 
subsection (c).
    (c) Budgets Developed by Governor.--
            (1) <<NOTE: Determinations.>>  Governor's proposed 
        budgets.--The Governor shall submit to the Oversight Board 
        proposed Budgets by the time specified in the notice delivered 
        under subsection (a). <<NOTE: Consultation.>>  In consultation 
        with the Governor in accordance with the process specified in 
        the notice delivered under subsection (a), the Oversight Board 
        shall determine in its sole discretion whether each proposed 
        Budget is compliant with the applicable Fiscal Plan and--
                    (A) if a proposed Budget is a compliant budget, the 
                Oversight Board shall--
                          (i) approve the Budget; and
                          (ii) if the Budget is a Territory Budget, 
                      submit the Territory Budget to the Legislature; or
                    (B) if the Oversight Board determines that the 
                Budget is not a compliant budget, the Oversight Board 
                shall provide to the Governor--
                          (i) <<NOTE: Notice.>>  a notice of violation 
                      that includes a description of any necessary 
                      corrective action; and
                          (ii) an opportunity to correct the violation 
                      in accordance with paragraph (2).
            (2) Governor's revisions.--The Governor may correct any 
        violations identified by the Oversight Board and submit a 
        revised proposed Budget to the Oversight Board in accordance 
        with paragraph (1). The Governor may submit as many revised 
        Budgets to the Oversight Board as the schedule established in 
        the notice delivered under subsection (a) permits. If the 
        Governor fails to develop a Budget that the Oversight Board 
        determines is a compliant budget by the time specified in the 
        notice delivered under subsection (a), the Oversight Board shall 
        develop and submit to the Governor, in the case of an

[[Page 130 STAT. 567]]

        Instrumentality Budget, and to the Governor and the Legislature, 
        in the case of a Territory Budget, a revised compliant budget.

    (d) Budget Approval by Legislature.--
            (1) Legislature adopted budget.--The Legislature shall 
        submit to the Oversight Board the Territory Budget adopted by 
        the Legislature by the time specified in the notice delivered 
        under subsection (a). <<NOTE: Determination.>>  The Oversight 
        Board shall determine whether the adopted Territory Budget is a 
        compliant budget and--
                    (A) <<NOTE: Certification.>>  if the adopted 
                Territory Budget is a compliant budget, the Oversight 
                Board shall issue a compliance certification for such 
                compliant budget pursuant to subsection (e); and
                    (B) if the adopted Territory Budget is not a 
                compliant budget, the Oversight Board shall provide to 
                the Legislature--
                          (i) <<NOTE: Notice.>>  a notice of violation 
                      that includes a description of any necessary 
                      corrective action; and
                          (ii) an opportunity to correct the violation 
                      in accordance with paragraph (2).
            (2) Legislature's revisions.--The Legislature may correct 
        any violations identified by the Oversight Board and submit a 
        revised Territory Budget to the Oversight Board in accordance 
        with the process established under paragraph (1) and by the time 
        specified in the notice delivered under subsection (a). The 
        Legislature may submit as many revised adopted Territory Budgets 
        to the Oversight Board as the schedule established in the notice 
        delivered under subsection (a) permits. If the Legislature fails 
        to adopt a Territory Budget that the Oversight Board determines 
        is a compliant budget by the time specified in the notice 
        delivered under subsection (a), the Oversight Board shall 
        develop a revised Territory Budget that is a compliant budget 
        and submit it to the Governor and the Legislature.

    (e) <<NOTE: Time period.>>  Certification of Budgets.--
            (1) Certification of developed and approved territory 
        budgets.--If the Governor and the Legislature develop and 
        approve a Territory Budget that is a compliant budget by the day 
        before the first day of the fiscal year for which the Territory 
        Budget is being developed and in accordance with the process 
        established under subsections (c) and (d), the Oversight Board 
        shall issue a compliance certification to the Governor and the 
        Legislature for such Territory Budget.
            (2) Certification of developed instrumentality budgets.--If 
        the Governor develops an Instrumentality Budget that is a 
        compliant budget by the day before the first day of the fiscal 
        year for which the Instrumentality Budget is being developed and 
        in accordance with the process established under subsection (c), 
        the Oversight Board shall issue a compliance certification to 
        the Governor for such Instrumentality Budget.
            (3) Deemed certification of territory budgets.--If the 
        Governor and the Legislature fail to develop and approve a 
        Territory Budget that is a compliant budget by the day before 
        the first day of the fiscal year for which the Territory Budget 
        is being developed, the Oversight Board shall submit a Budget to 
        the Governor and the Legislature (including any revision

[[Page 130 STAT. 568]]

        to the Territory Budget made by the Oversight Board pursuant to 
        subsection (d)(2)) and such Budget shall be--
                    (A) deemed to be approved by the Governor and the 
                Legislature;
                    (B) the subject of a compliance certification issued 
                by the Oversight Board to the Governor and the 
                Legislature; and
                    (C) <<NOTE: Effective date.>>  in full force and 
                effect beginning on the first day of the applicable 
                fiscal year.
            (4) Deemed certification of instrumentality budgets.--If the 
        Governor fails to develop an Instrumentality Budget that is a 
        compliant budget by the day before the first day of the fiscal 
        year for which the Instrumentality Budget is being developed, 
        the Oversight Board shall submit an Instrumentality Budget to 
        the Governor (including any revision to the Instrumentality 
        Budget made by the Oversight Board pursuant to subsection 
        (c)(2)) and such Budget shall be--
                    (A) deemed to be approved by the Governor;
                    (B) the subject of a compliance certification issued 
                by the Oversight Board to the Governor; and
                    (C) <<NOTE: Effective date.>>  in full force and 
                effect beginning on the first day of the applicable 
                fiscal year.

    (f) Joint Development of Budgets.--Notwithstanding any other 
provision of this section, if, in the case of a Territory Budget, the 
Governor, the Legislature, and the Oversight Board, or in the case of an 
Instrumentality Budget, the Governor and the Oversight Board, jointly 
develop such Budget for the fiscal year that meets the requirements 
under this section, and that the relevant parties certify that such 
budget reflects a consensus among them, then such Budget shall serve as 
the Budget for the territory or territorial instrumentality for that 
fiscal year.
SEC. 203. <<NOTE: Determinations. 48 USC 2143.>>  EFFECT OF 
                        FINDING OF NONCOMPLIANCE WITH BUDGET.

    (a) Submission of Reports.--Not later than 15 days after the last 
day of each quarter of a fiscal year (beginning with the fiscal year 
determined by the Oversight Board), the Governor shall submit to the 
Oversight Board a report, in such form as the Oversight Board may 
require, describing--
            (1) the actual cash revenues, cash expenditures, and cash 
        flows of the territorial government for the preceding quarter, 
        as compared to the projected revenues, expenditures, and cash 
        flows contained in the certified Budget for such preceding 
        quarter; and
            (2) any other information requested by the Oversight Board, 
        which may include a balance sheet or a requirement that the 
        Governor provide information for each covered territorial 
        instrumentality separately.

    (b) Initial Action by Oversight Board.--
            (1) In general.--If the Oversight Board determines, based on 
        reports submitted by the Governor under subsection (a), 
        independent audits, or such other information as the Oversight 
        Board may obtain, that the actual quarterly revenues, 
        expenditures, or cash flows of the territorial government are 
        not consistent with the projected revenues, expenditures, or 
        cash flows set forth in the certified Budget for such quarter, 
        the Oversight Board shall--

[[Page 130 STAT. 569]]

                    (A) require the territorial government to provide 
                such additional information as the Oversight Board 
                determines to be necessary to explain the inconsistency; 
                and
                    (B) if the additional information provided under 
                subparagraph (A) does not provide an explanation for the 
                inconsistency that the Oversight Board finds reasonable 
                and appropriate, advise the territorial government to 
                correct the inconsistency by implementing remedial 
                action.
            (2) Deadlines.--The Oversight Board shall establish the 
        deadlines by which the territorial government shall meet the 
        requirements of subparagraphs (A) and (B) of paragraph (1).

    (c) Certification.--
            (1) Inconsistency.--If the territorial government fails to 
        provide additional information under subsection (b)(1)(A), or 
        fails to correct an inconsistency under subsection (b)(1)(B), 
        prior to the applicable deadline under subsection (b)(2), the 
        Oversight Board shall certify to the President, the House of 
        Representatives Committee on Natural Resources, the Senate 
        Committee on Energy and Natural Resources, the Governor, and the 
        Legislature that the territorial government is inconsistent with 
        the applicable certified Budget, and shall describe the nature 
        and amount of the inconsistency.
            (2) Correction.--If the Oversight Board determines that the 
        territorial government has initiated such measures as the 
        Oversight Board considers sufficient to correct an inconsistency 
        certified under paragraph (1), the Oversight Board shall certify 
        the correction to the President, the House of Representatives 
        Committee on Natural Resources, the Senate Committee on Energy 
        and Natural Resources, the Governor, and the Legislature.

    (d) Budget Reductions by Oversight Board.--If the Oversight Board 
determines that the Governor, in the case of any then-applicable 
certified Instrumentality Budgets, and the Governor and the Legislature, 
in the case of the then-applicable certified Territory Budget, have 
failed to correct an inconsistency identified by the Oversight Board 
under subsection (c), the Oversight Board shall--
            (1) with respect to the territorial government, other than 
        covered territorial instrumentalities, make appropriate 
        reductions in nondebt expenditures to ensure that the actual 
        quarterly revenues and expenditures for the territorial 
        government are in compliance with the applicable certified 
        Territory Budget or, in the case of the fiscal year in which the 
        Oversight Board is established, the budget adopted by the 
        Governor and the Legislature; and
            (2) with respect to covered territorial instrumentalities at 
        the sole discretion of the Oversight Board--
                    (A) make reductions in nondebt expenditures to 
                ensure that the actual quarterly revenues and expenses 
                for the covered territorial instrumentality are in 
                compliance with the applicable certified Budget or, in 
                the case of the fiscal year in which the Oversight Board 
                is established, the budget adopted by the Governor and 
                the Legislature or the covered territorial 
                instrumentality, as applicable; or
                    (B)(i) institute automatic hiring freezes at the 
                covered territorial instrumentality; and

[[Page 130 STAT. 570]]

                    (ii) prohibit the covered territorial 
                instrumentality from entering into any contract or 
                engaging in any financial or other transactions, unless 
                the contract or transaction was previously approved by 
                the Oversight Board.

    (e) <<NOTE: Contracts.>>  Termination of Budget Reductions.--The 
Oversight Board shall cancel the reductions, hiring freezes, or 
prohibition on contracts and financial transactions under subsection (d) 
if the Oversight Board determines that the territorial government or 
covered territorial instrumentality, as applicable, has initiated 
appropriate measures to reduce expenditures or increase revenues to 
ensure that the territorial government or covered territorial 
instrumentality is in compliance with the applicable certified Budget 
or, in the case of the fiscal year in which the Oversight Board is 
established, the budget adopted by the Governor and the Legislature.
SEC. 204. <<NOTE: 48 USC 2144.>>  REVIEW OF ACTIVITIES TO ENSURE 
                        COMPLIANCE WITH FISCAL PLAN.

    (a) Submission of Legislative Acts to Oversight Board.--
            (1) <<NOTE: Deadline.>>  Submission of acts.--Except to the 
        extent that the Oversight Board may provide otherwise in its 
        bylaws, rules, and procedures, not later than 7 business days 
        after a territorial government duly enacts any law during any 
        fiscal year in which the Oversight Board is in operation, the 
        Governor shall submit the law to the Oversight Board.
            (2) Cost estimate; certification of compliance or 
        noncompliance.--The Governor shall include with each law 
        submitted to the Oversight Board under paragraph (1) the 
        following:
                    (A) A formal estimate prepared by an appropriate 
                entity of the territorial government with expertise in 
                budgets and financial management of the impact, if any, 
                that the law will have on expenditures and revenues.
                    (B) If the appropriate entity described in 
                subparagraph (A) finds that the law is not significantly 
                inconsistent with the Fiscal Plan for the fiscal year, 
                it shall issue a certification of such finding.
                    (C) If the appropriate entity described in 
                subparagraph (A) finds that the law is significantly 
                inconsistent with the Fiscal Plan for the fiscal year, 
                it shall issue a certification of such finding, together 
                with the entity's reasons for such finding.
            (3) Notification.--The Oversight Board shall send a 
        notification to the Governor and the Legislature if--
                    (A) the Governor submits a law to the Oversight 
                Board under this subsection that is not accompanied by 
                the estimate required under paragraph (2)(A);
                    (B) the Governor submits a law to the Oversight 
                Board under this subsection that is not accompanied by 
                either a certification described in paragraph (2)(B) or 
                (2)(C); or
                    (C) the Governor submits a law to the Oversight 
                Board under this subsection that is accompanied by a 
                certification described in paragraph (2)(C) that the law 
                is significantly inconsistent with the Fiscal Plan.
            (4) Opportunity to respond to notification.--
                    (A) Failure to provide estimate or certification.--
                After sending a notification to the Governor and the

[[Page 130 STAT. 571]]

                Legislature under paragraph (3)(A) or (3)(B) with 
                respect to a law, the Oversight Board may direct the 
                Governor to provide the missing estimate or 
                certification (as the case may be), in accordance with 
                such procedures as the Oversight Board may establish.
                    (B) Submission of certification of significant 
                inconsistency with fiscal plan and budget.--In 
                accordance with such procedures as the Oversight Board 
                may establish, after sending a notification to the 
                Governor and Legislature under paragraph (3)(C) that a 
                law is significantly inconsistent with the Fiscal Plan, 
                the Oversight Board shall direct the territorial 
                government to--
                          (i) correct the law to eliminate the 
                      inconsistency; or
                          (ii) provide an explanation for the 
                      inconsistency that the Oversight Board finds 
                      reasonable and appropriate.
            (5) Failure to comply.--If the territorial government fails 
        to comply with a direction given by the Oversight Board under 
        paragraph (4) with respect to a law, the Oversight Board may 
        take such actions as it considers necessary, consistent with 
        this Act, to ensure that the enactment or enforcement of the law 
        will not adversely affect the territorial government's 
        compliance with the Fiscal Plan, including preventing the 
        enforcement or application of the law.
            (6) <<NOTE: Determination.>>  Preliminary review of proposed 
        acts.--At the request of the Legislature, the Oversight Board 
        may conduct a preliminary review of proposed legislation before 
        the Legislature to determine whether the legislation as proposed 
        would be consistent with the applicable Fiscal Plan under this 
        subtitle, except that any such preliminary review shall not be 
        binding on the Oversight Board in reviewing any law subsequently 
        submitted under this subsection.

    (b) Effect of Approved Fiscal Plan on Contracts, Rules, and 
Regulations.--
            (1) Transparency in contracting.--The Oversight Board shall 
        work with a covered territory's office of the comptroller or any 
        functionally equivalent entity to promote compliance with the 
        applicable law of any covered territory that requires agencies 
        and instrumentalities of the territorial government to maintain 
        a registry of all contracts executed, including amendments 
        thereto, and to remit a copy to the office of the comptroller 
        for inclusion in a comprehensive database available to the 
        public. With respect to Puerto Rico, the term ``applicable law'' 
        refers to 2 L.P.R.A. 97, as amended.
            (2) Authority to review certain contracts.--The Oversight 
        Board may establish policies to require prior Oversight Board 
        approval of certain contracts, including leases and contracts to 
        a governmental entity or government-owned corporations rather 
        than private enterprises that are proposed to be executed by the 
        territorial government, to ensure such proposed contracts 
        promote market competition and are not inconsistent with the 
        approved Fiscal Plan.
            (3) Sense of congress.--It is the sense of Congress that any 
        policies established by the Oversight Board pursuant to 
        paragraph (2) should be designed to make the government 
        contracting process more effective, to increase the public's 
        faith

[[Page 130 STAT. 572]]

        in this process, to make appropriate use of the Oversight 
        Board's time and resources, to make the territorial government a 
        facilitator and not a competitor to private enterprise, and to 
        avoid creating any additional bureaucratic obstacles to 
        efficient contracting.
            (4) Authority to review certain rules, regulations, and 
        executive orders.--The provisions <<NOTE: Applicability.>>  of 
        this paragraph shall apply with respect to a rule, regulation, 
        or executive order proposed to be issued by the Governor (or the 
        head of any department or agency of the territorial government) 
        in the same manner as such provisions apply to a contract.
            (5) Failure to comply.--If a contract, rule, regulation, or 
        executive order fails to comply with policies established by the 
        Oversight Board under this subsection, the Oversight Board may 
        take such actions as it considers necessary to ensure that such 
        contract, rule, executive order or regulation will not adversely 
        affect the territorial government's compliance with the Fiscal 
        Plan, including by preventing the execution or enforcement of 
        the contract, rule, executive order or regulation.

    (c) <<NOTE: Time periods.>>  Restrictions on Budgetary 
Adjustments.--
            (1) <<NOTE: Analysis.>>  Submissions of requests to 
        oversight board.--If the Governor submits a request to the 
        Legislature for the reprogramming of any amounts provided in a 
        certified Budget, the Governor shall submit such request to the 
        Oversight Board, which shall analyze whether the proposed 
        reprogramming is significantly inconsistent with the Budget, and 
        submit its analysis to the Legislature as soon as practicable 
        after receiving the request.
            (2) No action permitted until analysis received.--The 
        Legislature shall not adopt a reprogramming, and no officer or 
        employee of the territorial government may carry out any 
        reprogramming, until the Oversight Board has provided the 
        Legislature with an analysis that certifies such reprogramming 
        will not be inconsistent with the Fiscal Plan and Budget.
            (3) Prohibition on action until oversight board is 
        appointed.--
                    (A) During the period after a territory becomes a 
                covered territory and prior to the appointment of all 
                members and the Chair of the Oversight Board, such 
                covered territory shall not enact new laws that either 
                permit the transfer of any funds or assets outside the 
                ordinary course of business or that are inconsistent 
                with the constitution or laws of the territory as of the 
                date of enactment of this Act, provided that any 
                executive or legislative action authorizing the movement 
                of funds or assets during this time period may be 
                subject to review and rescission by the Oversight Board 
                upon appointment of the Oversight Board's full 
                membership.
            (B) Upon appointment of the Oversight Board's full 
        membership, the Oversight Board may review, and in its sole 
        discretion, rescind, any law that--
                    (i) was enacted during the period between, with 
                respect to Puerto Rico, May 4, 2016; or with respect to 
                any other territory, 45 days prior to the establishment 
                of the Oversight Board for such territory, and the date 
                of appointment of all members and the Chair of the 
                Oversight Board; and

[[Page 130 STAT. 573]]

                    (ii) alters pre-existing priorities of creditors in 
                a manner outside the ordinary course of business or 
                inconsistent with the territory's constitution or the 
                laws of the territory as of, in the case of Puerto Rico, 
                May 4, 2016, or with respect to any other territory, 45 
                days prior to the establishment of the Oversight Board 
                for such territory;
        but such rescission shall only be to the extent that the law 
        alters such priorities.

    (d) Implementation of Federal Programs.--In taking actions under 
this Act, the Oversight Board shall not exercise applicable authorities 
to impede territorial actions taken to--
            (1) comply with a court-issued consent decree or injunction, 
        or an administrative order or settlement with a Federal agency, 
        with respect to Federal programs;
            (2) implement a federally authorized or federally delegated 
        program;
            (3) implement territorial laws, which are consistent with a 
        certified Fiscal Plan, that execute Federal requirements and 
        standards; or
            (4) preserve and maintain federally funded mass 
        transportation assets.
SEC. 205. <<NOTE: 48 USC 2145.>>  RECOMMENDATIONS ON FINANCIAL 
                        STABILITY AND MANAGEMENT RESPONSIBILITY.

    (a) In General.--The Oversight Board may at any time submit 
recommendations to the Governor or the Legislature on actions the 
territorial government may take to ensure compliance with the Fiscal 
Plan, or to otherwise promote the financial stability, economic growth, 
management responsibility, and service delivery efficiency of the 
territorial government, including recommendations relating to--
            (1) the management of the territorial government's financial 
        affairs, including economic forecasting and multiyear fiscal 
        forecasting capabilities, information technology, placing 
        controls on expenditures for personnel, reducing benefit costs, 
        reforming procurement practices, and placing other controls on 
        expenditures;
            (2) the structural relationship of departments, agencies, 
        and independent agencies within the territorial government;
            (3) the modification of existing revenue structures, or the 
        establishment of additional revenue structures;
            (4) the establishment of alternatives for meeting 
        obligations to pay for the pensions of territorial government 
        employees;
            (5) modifications or transfers of the types of services that 
        are the responsibility of, and are delivered by the territorial 
        government;
            (6) modifications of the types of services that are 
        delivered by entities other than the territorial government 
        under alternative service delivery mechanisms;
            (7) the effects of the territory's laws and court orders on 
        the operations of the territorial government;
            (8) the establishment of a personnel system for employees of 
        the territorial government that is based upon employee 
        performance standards;
            (9) the improvement of personnel training and proficiency, 
        the adjustment of staffing levels, and the improvement of

[[Page 130 STAT. 574]]

        training and performance of management and supervisory 
        personnel; and
            (10) the privatization and commercialization of entities 
        within the territorial government.

    (b) Response to Recommendations by the Territorial Government.--
            (1) <<NOTE: Deadline. Notice.>>  In general.--In the case of 
        any recommendations submitted under subsection (a) that are 
        within the authority of the territorial government to adopt, not 
        later than 90 days after receiving the recommendations, the 
        Governor or the Legislature (whichever has the authority to 
        adopt the recommendation) shall submit a statement to the 
        Oversight Board that provides notice as to whether the 
        territorial government will adopt the recommendations.
            (2) Implementation plan required for adopted 
        recommendations.--If the Governor or the Legislature (whichever 
        is applicable) notifies the Oversight Board under paragraph (1) 
        that the territorial government will adopt any of the 
        recommendations submitted under subsection (a), the Governor or 
        the Legislature (whichever is applicable) shall include in the 
        statement a written plan to implement the recommendation that 
        includes--
                    (A) specific performance measures to determine the 
                extent to which the territorial government has adopted 
                the recommendation; and
                    (B) a clear and specific timetable pursuant to which 
                the territorial government will implement the 
                recommendation.
            (3) Explanations required for recommendations not adopted.--
        If the Governor or the Legislature (whichever is applicable) 
        notifies the Oversight Board under paragraph (1) that the 
        territorial government will not adopt any recommendation 
        submitted under subsection (a) that the territorial government 
        has authority to adopt, the Governor or the Legislature shall 
        include in the statement explanations for the rejection of the 
        recommendations, and the Governor or the Legislature shall 
        submit such statement of explanations to the President and 
        Congress.
SEC. 206. <<NOTE: 48 USC 2146.>>  OVERSIGHT BOARD DUTIES RELATED 
                        TO RESTRUCTURING.

    (a) <<NOTE: Determination.>>  Requirements for Restructuring 
Certification.--The Oversight Board, prior to issuing a restructuring 
certification regarding an entity (as such term is defined in section 
101 of title 11, United States Code), shall determine, in its sole 
discretion, that--
            (1) the entity has made good-faith efforts to reach a 
        consensual restructuring with creditors;
            (2) the entity has--
                    (A) <<NOTE: Procedures.>>  adopted procedures 
                necessary to deliver timely audited financial 
                statements; and
                    (B) <<NOTE: Public information.>>  made public draft 
                financial statements and other information sufficient 
                for any interested person to make an informed decision 
                with respect to a possible restructuring;
            (3) the entity is either a covered territory that has 
        adopted a Fiscal Plan certified by the Oversight Board, a 
        covered territorial instrumentality that is subject to a 
        Territory Fiscal Plan

[[Page 130 STAT. 575]]

        certified by the Oversight Board, or a covered territorial 
        instrumentality that has adopted an Instrumentality Fiscal Plan 
        certified by the Oversight Board; and
            (4)(A) no order approving a Qualifying Modification under 
        section 601 has been entered with respect to such entity; or
            (B) if an order approving a Qualifying Modification has been 
        entered with respect to such entity, the entity is unable to 
        make its debt payments notwithstanding the approved Qualifying 
        Modification, in which case, all claims affected by the 
        Qualifying Modification shall be subject to a title III case.

    (b) Issuance of Restructuring Certification.--The issuance of a 
restructuring certification under this section requires a vote of no 
fewer than 5 members of the Oversight Board in the affirmative, which 
shall satisfy the requirement set forth in section 302(2) of this Act.
SEC. 207. <<NOTE: 48 USC 2147.>>  OVERSIGHT BOARD AUTHORITY 
                        RELATED TO DEBT ISSUANCE.

    For so long as the Oversight Board remains in operation, no 
territorial government may, without the prior approval of the Oversight 
Board, issue debt or guarantee, exchange, modify, repurchase, redeem, or 
enter into similar transactions with respect to its debt.
SEC. 208. <<NOTE: 48 USC 2148.>>  REQUIRED REPORTS.

    (a) Annual Report.--Not later than 30 days after the last day of 
each fiscal year, the Oversight Board shall submit a report to the 
President, Congress, the Governor and the Legislature, describing--
            (1) the progress made by the territorial government in 
        meeting the objectives of this Act during the fiscal year;
            (2) the assistance provided by the Oversight Board to the 
        territorial government in meeting the purposes of this Act 
        during the fiscal year;
            (3) <<NOTE: Recommenda- tions.>>  recommendations to the 
        President and Congress on changes to this Act or other Federal 
        laws, or other actions of the Federal Government, that would 
        assist the territorial government in complying with any 
        certified Fiscal Plan;
            (4) the precise manner in which funds allocated to the 
        Oversight Board under section 107 and, as applicable, section 
        104(e) have been spent by the Oversight Board during the fiscal 
        year; and
            (5) any other activities of the Oversight Board during the 
        fiscal year.

    (b) Report on Discretionary Tax Abatement Agreements.--Within six 
months of the establishment of the Oversight Board, the Governor shall 
submit a report to the Oversight Board documenting all existing 
discretionary tax abatement or similar tax relief agreements to which 
the territorial government, or any territorial instrumentality, is a 
party, provided that--
            (1) nothing in this Act shall be interpreted to limit the 
        power of the territorial government or any territorial 
        instrumentality to execute or modify discretionary tax abatement 
        or similar tax relief agreements, or to enforce compliance with 
        the terms and conditions of any discretionary tax abatement or 
        similar tax relief agreement, to which the territorial 
        government or any territorial instrumentality is a party; and

[[Page 130 STAT. 576]]

            (2) the members and staff of the Oversight Board shall not 
        disclose the contents of the report described in this 
        subsection, and shall otherwise comply with all applicable 
        territorial and Federal laws and regulations regarding the 
        handling of confidential taxpayer information.

    (c) Quarterly Reports of Cash Flow.--The Oversight Board, when 
feasible, shall report on the amount of cash flow available for the 
payment of debt service on all notes, bonds, debentures, credit 
agreements, or other instruments for money borrowed whose enforcement is 
subject to a stay or moratorium hereunder, together with any variance 
from the amount set forth in the debt sustainability analysis of the 
Fiscal Plan under section 201(b)(1)(I).
SEC. 209. <<NOTE: Certification. 48 USC 2149.>>  TERMINATION OF 
                        OVERSIGHT BOARD.

    An Oversight Board shall terminate upon certification by the 
Oversight Board that--
            (1) the applicable territorial government has adequate 
        access to short-term and long-term credit markets at reasonable 
        interest rates to meet the borrowing needs of the territorial 
        government; and
            (2) for at least 4 consecutive fiscal years--
                    (A) the territorial government has developed its 
                Budgets in accordance with modified accrual accounting 
                standards; and
                    (B) the expenditures made by the territorial 
                government during each fiscal year did not exceed the 
                revenues of the territorial government during that year, 
                as determined in accordance with modified accrual 
                accounting standards.
SEC. 210. <<NOTE: 48 USC 2150.>>  NO FULL FAITH AND CREDIT OF THE 
                        UNITED STATES.

    (a) In General.--The full faith and credit of the United States is 
not pledged for the payment of any principal of or interest on any bond, 
note, or other obligation issued by a covered territory or covered 
territorial instrumentality. The United States is not responsible or 
liable for the payment of any principal of or interest on any bond, 
note, or other obligation issued by a covered territory or covered 
territorial instrumentality.
    (b) Subject to Appropriations.--Any claim to which the United States 
is determined to be liable under this Act shall be subject to 
appropriations.
    (c) Funding.--No Federal funds shall be authorized by this Act for 
the payment of any liability of the territory or territorial 
instrumentality.
SEC. 211. <<NOTE: 48 USC 2151.>>  ANALYSIS OF PENSIONS.

    (a) Determination.--If the Oversight Board determines, in its sole 
discretion, that a pension system of the territorial government is 
materially underfunded, the Oversight Board shall conduct an analysis 
prepared by an independent actuary of such pension system to assist the 
Oversight Board in evaluating the fiscal and economic impact of the 
pension cash flows.
    (b) Provisions of Analysis.--An analysis conducted under subsection 
(a) shall include--
            (1) <<NOTE: Study. Time period.>>  an actuarial study of the 
        pension liabilities and funding strategy that includes a forward 
        looking projection of payments of at least 30 years of benefit 
        payments and funding strategy to cover such payments;

[[Page 130 STAT. 577]]

            (2) sources of funding to cover such payments;
            (3) <<NOTE: Review.>>  a review of the existing benefits and 
        their sustainability; and
            (4) <<NOTE: Review.>>  a review of the system's legal 
        structure and operational arrangements, and any other studies of 
        the pension system the Oversight Board shall deem necessary.

    (c) Supplementary Information.--In any case, the analysis conducted 
under subsection (a) shall include information regarding the fair market 
value and liabilities using an appropriate discount rate as determined 
by the Oversight Board.
SEC. 212. <<NOTE: 48 USC 2152.>>  INTERVENTION IN LITIGATION.

    (a) Intervention.--The Oversight Board may intervene in any 
litigation filed against the territorial government.
    (b) Injunctive Relief.--
            (1) In general.--If the Oversight Board intervenes in a 
        litigation under subsection (a), the Oversight Board may seek 
        injunctive relief, including a stay of litigation.
            (2) No independent basis for relief.--This section does not 
        create an independent basis on which injunctive relief, 
        including a stay of litigation, may be granted.

                     TITLE III--ADJUSTMENTS OF DEBTS

SEC. 301. <<NOTE: 48 USC 2161.>>  APPLICABILITY OF OTHER LAWS; 
                        DEFINITIONS.

    (a) <<NOTE: Time period.>>  Sections Applicable to Cases Under This 
Title.--Sections 101 (except as otherwise provided in this section), 
102, 104, 105, 106, 107, 108, 112, 333, 344, 347(b), 349, 350(b), 351, 
361, 362, 364(c), 364(d), 364(e), 364(f), 365, 366, 501, 502, 503, 504, 
506, 507(a)(2), 509, 510, 524(a)(1), 524(a)(2), 544, 545, 546, 547, 548, 
549(a), 549(c), 549(d), 550, 551, 552, 553, 555, 556, 557, 559, 560, 
561, 562, 902 (except as otherwise provided in this section), 922, 923, 
924, 925, 926, 927, 928, 942, 944, 945, 946, 1102, 1103, 1109, 1111(b), 
1122, 1123(a)(1), 1123(a)(2), 1123(a)(3), 1123(a)(4), 1123(a)(5), 
1123(b), 1123(d), 1124, 1125, 1126(a), 1126(b), 1126(c), 1126(e), 
1126(f), 1126(g), 1127(d), 1128, 1129(a)(2), 1129(a)(3), 1129(a)(6), 
1129(a)(8), 1129(a)(10), 1129(b)(1), 1129(b)(2)(A), 1129(b)(2)(B), 
1142(b), 1143, 1144, 1145, and 1146(a) of title 11, United States Code, 
apply in a case under this title and section 930 of title 11, United 
States Code, applies in a case under this title; however, section 930 
shall not apply in any case during the first 120 days after the date on 
which such case is commenced under this title.

    (b) Meanings of Terms.--A term used in a section of title 11, United 
States Code, made applicable in a case under this title by subsection 
(a), has the meaning given to the term for the purpose of the applicable 
section, unless the term is otherwise defined in this title.
    (c) Definitions.--In this title:
            (1) Affiliate.--The term ``affiliate'' means, in addition to 
        the definition made applicable in a case under this title by 
        subsection (a)--
                    (A) for a territory, any territorial 
                instrumentality; and
                    (B) for a territorial instrumentality, the governing 
                territory and any of the other territorial 
                instrumentalities of the territory.

[[Page 130 STAT. 578]]

            (2) Debtor.--The term ``debtor'' means the territory or 
        covered territorial instrumentality concerning which a case 
        under this title has been commenced.
            (3) Holder of a claim or interest.--The term ``holder of a 
        claim or interest'', when used in section 1126 of title 11, 
        United States Code, made applicable in a case under this title 
        by subsection (a)--
                    (A) <<NOTE: Courts.>>  shall exclude any Issuer or 
                Authorized Instrumentality of the Territory Government 
                Issuer (as defined under Title VI of this Act) or a 
                corporation, trust or other legal entity that is 
                controlled by the Issuer or an Authorized Territorial 
                Instrumentality of the Territory Government Issuer, 
                provided that the beneficiaries of such claims, to the 
                extent they are not referenced in this subparagraph, 
                shall not be excluded, and that, for each excluded trust 
                or other legal entity, the court shall, upon the request 
                of any participant or beneficiary of such trust or 
                entity, at any time after the commencement of the case, 
                order the appointment of a separate committee of 
                creditors pursuant to section 1102(a)(2) of title 11, 
                United States Code; and
                    (B) with reference to Insured Bonds, shall mean the 
                monoline insurer insuring such Insured Bond to the 
                extent such insurer is granted the right to vote Insured 
                Bonds for purposes of directing remedies or consenting 
                to proposed amendments or modifications as provided in 
                the applicable documents pursuant to which such Insured 
                Bond was issued and insured.
            (4) Insured bond.--The term ``Insured Bond'' means a bond 
        subject to a financial guarantee or similar insurance contract, 
        policy and/or surety issued by a monoline insurer.
            (5) Property of the estate.--The term ``property of the 
        estate'', when used in a section of title 11, United States 
        Code, made applicable in a case under this title by subsection 
        (a), means property of the debtor.
            (6) State.--The term ``State'' when used in a section of 
        title 11, United States Code, made applicable in a case under 
        this title by subsection (a) means State or territory when used 
        in reference to the relationship of a State to the municipality 
        of the State or the territorial instrumentality of a territory, 
        as applicable.
            (7) Trustee.--The term ``trustee'', when used in a section 
        of title 11, United States Code, made applicable in a case under 
        this title by subsection (a), means the Oversight Board, except 
        as provided in section 926 of title 11, United States Code. The 
        term ``trustee'' as described in this paragraph does not mean 
        the U.S. Trustee, an official of the United States Trustee 
        Program, which is a component of the United States Department of 
        Justice.

    (d) Reference to Title.--Solely for purposes of this title, a 
reference to ``this title'', ``this chapter'', or words of similar 
import in a section of title 11, United States Code, made applicable in 
a case under this title by subsection (a) or to ``this title'', ``title 
11'', ``Chapter 9'', ``Chapter 11'', ``the Code'', or words of similar 
import in the Federal Rules of Bankruptcy Procedure made applicable in a 
case under this title shall be deemed to be a reference to this title.

[[Page 130 STAT. 579]]

    (e) <<NOTE: Determination.>>  Substantially Similar.--In determining 
whether claims are ``substantially similar'' for the purpose of section 
1122 of title 11, United States Code, made applicable in a case under 
this title by subsection (a), the Oversight Board shall consider whether 
such claims are secured and whether such claims have priority over other 
claims.

    (f) Operative Clauses.--A section made applicable in a case under 
this title by subsection (a) that is operative if the business of the 
debtor is authorized to be operated is operative in a case under this 
title.
SEC. 302. <<NOTE: 48 USC 2162.>>  WHO MAY BE A DEBTOR.

    An entity may be a debtor under this title if--
            (1) the entity is--
                    (A) a territory that has requested the establishment 
                of an Oversight Board or has had an Oversight Board 
                established for it by the United States Congress in 
                accordance with section 101 of this Act; or
                    (B) a covered territorial instrumentality of a 
                territory described in paragraph (1)(A);
            (2) the Oversight Board has issued a certification under 
        section 206(b) of this Act for such entity; and
            (3) the entity desires to effect a plan to adjust its debts.
SEC. 303. <<NOTE: 48 USC 2163.>>  RESERVATION OF TERRITORIAL POWER 
                        TO CONTROL TERRITORY AND TERRITORIAL 
                        INSTRUMENTALITIES.

    Subject to the limitations set forth in titles I and II of this Act, 
this title does not limit or impair the power of a covered territory to 
control, by legislation or otherwise, the territory or any territorial 
instrumentality thereof in the exercise of the political or governmental 
powers of the territory or territorial instrumentality, including 
expenditures for such exercise, but whether or not a case has been or 
can be commenced under this title--
            (1) a territory law prescribing a method of composition of 
        indebtedness or a moratorium law, but solely to the extent that 
        it prohibits the payment of principal or interest by an entity 
        not described in section 109(b)(2) of title 11, United States 
        Code, may not bind any creditor of a covered territory or any 
        covered territorial instrumentality thereof that does not 
        consent to the composition or moratorium;
            (2) a judgment entered under a law described in paragraph 
        (1) may not bind a creditor that does not consent to the 
        composition; and
            (3) unlawful executive orders that alter, amend, or modify 
        rights of holders of any debt of the territory or territorial 
        instrumentality, or that divert funds from one territorial 
        instrumentality to another or to the territory, shall be 
        preempted by this Act.
SEC. 304. <<NOTE: Courts. 48 USC 2164.>>  PETITION AND PROCEEDINGS 
                        RELATING TO PETITION.

    (a) Commencement of Case.--A voluntary case under this title is 
commenced by the filing with the district court of a petition by the 
Oversight Board pursuant to the determination under section 206 of this 
Act.
    (b) Objection to Petition.--After any objection to the petition, the 
court, after notice and a hearing, may dismiss the petition if the 
petition does not meet the requirements of this title; however, this 
subsection shall not apply in any case during the first 120

[[Page 130 STAT. 580]]

days after the date on which such case is commenced under this title.
    (c) Order for Relief.--The commencement of a case under this title 
constitutes an order for relief.
    (d) Appeal.--The court may not, on account of an appeal from an 
order for relief, delay any proceeding under this title in the case in 
which the appeal is being taken, nor shall any court order a stay of 
such proceeding pending such appeal.
    (e) Validity of Debt.--The reversal on appeal of a finding of 
jurisdiction shall not affect the validity of any debt incurred that is 
authorized by the court under section 364(c) or 364(d) of title 11, 
United States Code.
    (f) Joint Filing of Petitions and Plans Permitted.--The Oversight 
Board, on behalf of debtors under this title, may file petitions or 
submit or modify plans of adjustment jointly if the debtors are 
affiliates; provided, however, that nothing in this title shall be 
construed as authorizing substantive consolidation of the cases of 
affiliated debtors.
    (g) Joint Administration of Affiliated Cases.--If the Oversight 
Board, on behalf of a debtor and one or more affiliates, has filed 
separate cases and the Oversight Board, on behalf of the debtor or one 
of the affiliates, files a motion to administer the cases jointly, the 
court may order a joint administration of the cases.
    (h) Public Safety.--This Act may not be construed to permit the 
discharge of obligations arising under Federal police or regulatory 
laws, including laws relating to the environment, public health or 
safety, or territorial laws implementing such Federal legal provisions. 
This includes compliance obligations, requirements under consent decrees 
or judicial orders, and obligations to pay associated administrative, 
civil, or other penalties.
    (i) Voting on Debt Adjustment Plans Not Stayed.--Notwithstanding any 
provision in this title to the contrary, including sections of title 11, 
United States Code, incorporated by reference, nothing in this section 
shall prevent the holder of a claim from voting on or consenting to a 
proposed modification of such claim under title VI of this Act.
SEC. 305. <<NOTE: 48 USC 2165.>>  LIMITATION ON JURISDICTION AND 
                        POWERS OF COURT.

    Subject to the limitations set forth in titles I and II of this Act, 
notwithstanding any power of the court, unless the Oversight Board 
consents or the plan so provides, the court may not, by any stay, order, 
or decree, in the case or otherwise, interfere with--
            (1) any of the political or governmental powers of the 
        debtor;
            (2) any of the property or revenues of the debtor; or
            (3) the use or enjoyment by the debtor of any income-
        producing property.
SEC. 306. <<NOTE: Courts. 48 USC 2166.>>  JURISDICTION.

    (a) Federal Subject Matter Jurisdiction.--The district courts shall 
have--
            (1) except as provided in paragraph (2), original and 
        exclusive jurisdiction of all cases under this title; and
            (2) except as provided in subsection (b), and 
        notwithstanding any Act of Congress that confers exclusive 
        jurisdiction on a court or courts other than the district 
        courts, original but not exclusive jurisdiction of all civil 
        proceedings arising

[[Page 130 STAT. 581]]

        under this title, or arising in or related to cases under this 
        title.

    (b) Property Jurisdiction.--The district court in which a case under 
this title is commenced or is pending shall have exclusive jurisdiction 
of all property, wherever located, of the debtor as of the commencement 
of the case.
    (c) Personal Jurisdiction.--The district court in which a case under 
this title is pending shall have personal jurisdiction over any person 
or entity.
    (d) Removal, Remand, and Transfer.--
            (1) Removal.--A party may remove any claim or cause of 
        action in a civil action, other than a proceeding before the 
        United States Tax Court or a civil action by a governmental unit 
        to enforce the police or regulatory power of the governmental 
        unit, to the district court for the district in which the civil 
        action is pending, if the district court has jurisdiction of the 
        claim or cause of action under this section.
            (2) Remand.--The district court to which the claim or cause 
        of action is removed under paragraph (1) may remand the claim or 
        cause of action on any equitable ground. An order entered under 
        this subsection remanding a claim or cause of action, or a 
        decision not to remand, is not reviewable by appeal or otherwise 
        by the court of appeals under section 158(d), 1291 or 1292 of 
        title 28, United States Code, or by the Supreme Court of the 
        United States under section 1254 of title 28, United States 
        Code.
            (3) Transfer.--A district court shall transfer any civil 
        proceeding arising under this title, or arising in or related to 
        a case under this title, to the district court in which the case 
        under this title is pending.

    (e) Appeal.--
            (1) An appeal shall be taken in the same manner as appeals 
        in civil proceedings generally are taken to the courts of 
        appeals from the district court.
            (2) The court of appeals for the circuit in which a case 
        under this title has venue pursuant to section 307 of this title 
        shall have jurisdiction of appeals from all final decisions, 
        judgments, orders and decrees entered under this title by the 
        district court.
            (3) The court of appeals for the circuit in which a case 
        under this title has venue pursuant to section 307 of this title 
        shall have jurisdiction to hear appeals of interlocutory orders 
        or decrees if--
                    (A) <<NOTE: Certification.>>  the district court on 
                its own motion or on the request of a party to the order 
                or decree certifies that--
                          (i) the order or decree involves a question of 
                      law as to which there is no controlling decision 
                      of the court of appeals for the circuit or of the 
                      Supreme Court of the United States, or involves a 
                      matter of public importance;
                          (ii) the order or decree involves a question 
                      of law requiring the resolution of conflicting 
                      decisions; or
                          (iii) an immediate appeal from the order or 
                      decree may materially advance the progress of the 
                      case or proceeding in which the appeal is taken; 
                      and
                    (B) the court of appeals authorizes the direct 
                appeal of the order or decree.

[[Page 130 STAT. 582]]

            (4) <<NOTE: Determination.>>  If the district court on its 
        own motion or on the request of a party determines that a 
        circumstance specified in clauses (i), (ii), or (iii) of 
        paragraph (3)(A) exists, then the district court shall make the 
        certification described in paragraph (3).
            (5) The parties may supplement the certification with a 
        short statement of the basis for the certification issued by the 
        district court under paragraph (3)(A).
            (6) Except as provided in section 304(d), an appeal of an 
        interlocutory order or decree does not stay any proceeding of 
        the district court from which the appeal is taken unless the 
        district court, or the court of appeals in which the appeal is 
        pending, issues a stay of such proceedings pending the appeal.
            (7) <<NOTE: Deadline.>>  Any request for a certification in 
        respect to an interlocutory appeal of an order or decree shall 
        be made not later than 60 days after the entry of the order or 
        decree.

    (f) Reallocation of Court Staff.--Notwithstanding any law to the 
contrary, the clerk of the court in which a case is pending shall 
reallocate as many staff and assistants as the clerk deems necessary to 
ensure that the court has adequate resources to provide for proper case 
management.
SEC. 307. <<NOTE: 48 USC 2167.>>  VENUE.

    (a) In General.--Venue shall be proper in--
            (1) with respect to a territory, the district court for the 
        territory or, for any territory that does not have a district 
        court, the United States District Court for the District of 
        Hawaii; and
            (2) with respect to a covered territorial instrumentality, 
        the district court for the territory in which the covered 
        territorial instrumentality is located or, for any territory 
        that does not have a district court, the United States District 
        Court for the District of Hawaii.

    (b) Alternative Venue.--
            (1) <<NOTE: Determination.>>  If the Oversight Board so 
        determines in its sole discretion, then venue shall be proper in 
        the district court for the jurisdiction in which the Oversight 
        Board maintains an office that is located outside the territory.
            (2) With respect to paragraph (1), the Oversight Board may 
        consider, among other things--
                    (A) the resources of the district court to 
                adjudicate a case or proceeding; and
                    (B) the impact on witnesses who may be called in 
                such a case or proceeding.
SEC. 308. <<NOTE: 48 USC 2168.>>  SELECTION OF PRESIDING JUDGE.

    (a) For cases in which the debtor is a territory, the Chief Justice 
of the United States shall designate a district court judge to sit by 
designation to conduct the case.
    (b) For cases in which the debtor is not a territory, and no motion 
for joint administration of the debtor's case with the case of its 
affiliate territory has been filed or there is no case in which the 
affiliate territory is a debtor, the chief judge of the court of appeals 
for the circuit embracing the district in which the case is commenced 
shall designate a district court judge to conduct the case.

[[Page 130 STAT. 583]]

SEC. 309. <<NOTE: 48 USC 2169.>>  ABSTENTION.

    Nothing in this title prevents a district court in the interests of 
justice from abstaining from hearing a particular proceeding arising in 
or related to a case under this title.
SEC. 310. <<NOTE: 48 USC 2170.>>  APPLICABLE RULES OF PROCEDURE.

    The Federal Rules of Bankruptcy Procedure shall apply to a case 
under this title and to all civil proceedings arising in or related to 
cases under this title.
SEC. 311. <<NOTE: 48 USC 2171.>>  LEASES.

    A lease to a territory or territorial instrumentality shall not be 
treated as an executory contract or unexpired lease for the purposes of 
section 365 or 502(b)(6) of title 11, United States Code, solely by 
reason of the lease being subject to termination in the event the debtor 
fails to appropriate rent.
SEC. 312. <<NOTE: 48 USC 2172.>>  FILING OF PLAN OF ADJUSTMENT.

    (a) Exclusivity.--Only the Oversight Board, after the issuance of a 
certificate pursuant to section 104(j) of this Act, may file a plan of 
adjustment of the debts of the debtor.
    (b) Deadline for Filing Plan.--If the Oversight Board does not file 
a plan of adjustment with the petition, the Oversight Board shall file a 
plan of adjustment at the time set by the court.
SEC. 313. <<NOTE: 48 USC 2173.>>  MODIFICATION OF PLAN.

    The Oversight Board, after the issuance of a certification pursuant 
to section 104(j) of this Act, may modify the plan at any time before 
confirmation, but may not modify the plan so that the plan as modified 
fails to meet the requirements of this title. After the Oversight Board 
files a modification, the plan as modified becomes the plan.
SEC. 314. <<NOTE: Plan. Courts. 48 USC 2174.>>  CONFIRMATION.

    (a) Objection.--A special tax payer may object to confirmation of a 
plan.
    (b) Confirmation.--The court shall confirm the plan if--
            (1) the plan complies with the provisions of title 11 of the 
        United States Code, made applicable to a case under this title 
        by section 301 of this Act;
            (2) the plan complies with the provisions of this title;
            (3) the debtor is not prohibited by law from taking any 
        action necessary to carry out the plan;
            (4) except to the extent that the holder of a particular 
        claim has agreed to a different treatment of such claim, the 
        plan provides that on the effective date of the plan each holder 
        of a claim of a kind specified in 507(a)(2) of title 11, United 
        States Code, will receive on account of such claim cash equal to 
        the allowed amount of such claim;
            (5) any legislative, regulatory, or electoral approval 
        necessary under applicable law in order to carry out any 
        provision of the plan has been obtained, or such provision is 
        expressly conditioned on such approval;
            (6) the plan is feasible and in the best interests of 
        creditors, which shall require the court to consider whether 
        available remedies under the non-bankruptcy laws and 
        constitution of the territory would result in a greater recovery 
        for the creditors than is provided by such plan; and

[[Page 130 STAT. 584]]

            (7) the plan is consistent with the applicable Fiscal Plan 
        certified by the Oversight Board under title II.

    (c) Confirmation for Debtors With a Single Class of Claims.--If all 
of the requirements of section 314(b) of this title and section 1129(a) 
of title 11, United States Code, incorporated into this title by section 
301 other than sections 1129(a)(8) and 1129(a)(10) are met with respect 
to a plan--
            (1) with respect to which all claims are substantially 
        similar under section 301(e) of this title;
            (2) that includes only one class of claims, which claims are 
        impaired claims; and
            (3) that was not accepted by such impaired class,

the court shall confirm the plan notwithstanding the requirements of 
such sections 1129(a)(8) and 1129(a)(10) of title 11, United States Code 
if the plan is fair and equitable and does not discriminate unfairly 
with respect to such impaired class.
SEC. 315. <<NOTE: 48 USC 2175.>>  ROLE AND CAPACITY OF OVERSIGHT 
                        BOARD.

    (a) Actions of Oversight Board.--For the purposes of this title, the 
Oversight Board may take any action necessary on behalf of the debtor to 
prosecute the case of the debtor, including--
            (1) filing a petition under section 304 of this Act;
            (2) submitting or modifying a plan of adjustment under 
        sections 312 and 313; or
            (3) otherwise generally submitting filings in relation to 
        the case with the court.

    (b) Representative of Debtor.--The Oversight Board in a case under 
this title is the representative of the debtor.
SEC. 316. <<NOTE: Courts. 48 USC 2176.>>  COMPENSATION OF 
                        PROFESSIONALS.

    (a) After notice to the parties in interest and the United States 
Trustee and a hearing, the court may award to a professional person 
employed by the debtor (in the debtor's sole discretion), the Oversight 
Board (in the Oversight Board's sole discretion), a committee under 
section 1103 of title 11, United States Code, or a trustee appointed by 
the court under section 926 of title 11, United States Code--
            (1) reasonable compensation for actual, necessary services 
        rendered by the professional person, or attorney and by any 
        paraprofessional person employed by any such person; and
            (2) reimbursement for actual, necessary expenses.

    (b) The court may, on its own motion or on the motion of the United 
States Trustee or any other party in interest, award compensation that 
is less than the amount of compensation that is requested.
    (c) In determining the amount of reasonable compensation to be 
awarded to a professional person, the court shall consider the nature, 
the extent, and the value of such services, taking into account all 
relevant factors, including--
            (1) the time spent on such services;
            (2) the rates charged for such services;
            (3) whether the services were necessary to the 
        administration of, or beneficial at the time at which the 
        service was rendered toward the completion of, a case under this 
        chapter;
            (4) whether the services were performed within a reasonable 
        amount of time commensurate with the complexity, importance, and 
        nature of the problem, issue, or task addressed;

[[Page 130 STAT. 585]]

            (5) with respect to a professional person, whether the 
        person is board certified or otherwise has demonstrated skill 
        and experience in the restructuring field; and
            (6) whether the compensation is reasonable based on the 
        customary compensation charged by comparably skilled 
        practitioners in cases other than cases under this title or 
        title 11, United States Code.

    (d) The court shall not allow compensation for--
            (1) unnecessary duplication of services; or
            (2) services that were not--
                    (A) reasonably likely to benefit the debtor; or
                    (B) necessary to the administration of the case.

    (e) The court shall reduce the amount of compensation awarded under 
this section by the amount of any interim compensation awarded under 
section 317 of this title, and, if the amount of such interim 
compensation exceeds the amount of compensation awarded under this 
section, may order the return of the excess to the debtor.
    (f) Any compensation awarded for the preparation of a fee 
application shall be based on the level and skill reasonably required to 
prepare the application.
SEC. 317. <<NOTE: Time period. 48 USC 2177.>>  INTERIM 
                        COMPENSATION.

    A debtor's attorney, or any professional person employed by the 
debtor (in the debtor's sole discretion), the Oversight Board (in the 
Oversight Board's sole discretion), a committee under section 1103 of 
title 11, United States Code, or a trustee appointed by the court under 
section 926 of title 11, United States Code, may apply to the court not 
more than once every 120 days after an order for relief in a case under 
this title, or more often if the court permits, for such compensation 
for services rendered before the date of such an application or 
reimbursement for expenses incurred before such date as is provided 
under section 316 of this title.

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. <<NOTE: 48 USC 2191.>>  RULES OF CONSTRUCTION.

    Nothing in this Act is intended, or may be construed--
            (1) to limit the authority of Congress to exercise 
        legislative authority over the territories pursuant to Article 
        IV, section 3 of the Constitution of the United States;
            (2) to authorize the application of section 104(f) of this 
        Act (relating to issuance of subpoenas) to judicial officers or 
        employees of territory courts;
            (3) to alter, amend, or abrogate any provision of the 
        Covenant To Establish a Commonwealth of the Northern Mariana 
        Islands in Political Union With the United States of America (48 
        U.S.C. 1801 et seq.); or
            (4) to alter, amend, or abrogate the treaties of cession 
        regarding certain islands of American Samoa (48 U.S.C. 1661).

[[Page 130 STAT. 586]]

SEC. 402. <<NOTE: 48 USC 2192.>>  RIGHT OF PUERTO RICO TO 
                        DETERMINE ITS FUTURE POLITICAL STATUS.

    Nothing in this Act shall be interpreted to restrict Puerto Rico's 
right to determine its future political status, including by conducting 
the plebiscite as authorized by Public Law 113-76.
SEC. 403. FIRST MINIMUM WAGE IN PUERTO RICO.

    Section 6(g) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
206(g)) is amended by striking paragraphs (2) through (4) and inserting 
the following:
    ``(2) <<NOTE: Time period.>>  In lieu of the rate prescribed by 
subsection (a)(1), the Governor of Puerto Rico, subject to the approval 
of the Financial Oversight and Management Board established pursuant to 
section 101 of the Puerto Rico Oversight, Management, and Economic 
Stability Act, may designate a time period not to exceed four years 
during which employers in Puerto Rico may pay employees who are 
initially employed after the date of enactment of such Act a wage which 
is not less than the wage described in paragraph (1). Notwithstanding 
the time period designated, such wage shall not continue in effect after 
such Board terminates in accordance with section 209 of such Act.

    ``(3) No employer may take any action to displace employees 
(including partial displacements such as reduction in hours, wages, or 
employment benefits) for purposes of hiring individuals at the wage 
authorized in paragraph (1) or (2).
    ``(4) Any employer who violates this subsection shall be considered 
to have violated section 15(a)(3) (29 U.S.C. 215(a)(3)).
    ``(5) <<NOTE: Applicability.>>  This subsection shall only apply to 
an employee who has not attained the age of 20 years, except in the case 
of the wage applicable in Puerto Rico, 25 years, until such time as the 
Board described in paragraph (2) terminates in accordance with section 
209 of the Act described in such paragraph.''.
SEC. 404. <<NOTE: 48 USC 2193.>>  APPLICATION OF REGULATION TO 
                        PUERTO RICO.

    (a) Special Rule.--The regulations proposed by the Secretary of 
Labor relating to exemptions regarding the rates of pay for executive, 
administrative, professional, outside sales, and computer employees, and 
published in a notice in the Federal Register on July 6, 2015, and any 
final regulations issued related to such notice, shall have no force or 
effect in the Commonwealth of Puerto Rico until--
            (1) <<NOTE: Assessment.>>  the Comptroller General of the 
        United States completes the assessment and transmits the report 
        required under subsection (b); and
            (2) <<NOTE: Determination.>>  the Secretary of Labor, taking 
        into account the assessment and report of the Comptroller 
        General, provides a written determination to Congress that 
        applying such rule to Puerto Rico would not have a negative 
        impact on the economy of Puerto Rico.

    (b) Assessment and Report.--Not later than two years after the date 
of enactment of this Act, the Comptroller General shall examine the 
economic conditions in Puerto Rico and shall transmit a report to 
Congress assessing the impact of applying the regulations described in 
subsection (a) to Puerto Rico, taking into consideration regional, 
metropolitan, and non-metropolitan salary and cost-of-living 
differences.
    (c) Sense of Congress.--It is the sense of Congress that--

[[Page 130 STAT. 587]]

            (1) the Bureau of the Census should conduct a study to 
        determine the feasibility of expanding data collection to 
        include Puerto Rico and the other United States territories in 
        the Current Population Survey, which is jointly administered by 
        the Bureau of the Census and the Bureau of Labor Statistics, and 
        which is the primary source of labor force statistics for the 
        population of the United States; and
            (2) if necessary, the Bureau of the Census should request 
        the funding required to conduct this feasibility study as part 
        of its budget submission to Congress for fiscal year 2018.
SEC. 405. <<NOTE: 48 USC 2194.>>  AUTOMATIC STAY UPON ENACTMENT.

    (a) Definitions.--In this section:
            (1) Liability.--The term ``Liability'' means a bond, loan, 
        letter of credit, other borrowing title, obligation of 
        insurance, or other financial indebtedness for borrowed money, 
        including rights, entitlements, or obligations whether such 
        rights, entitlements, or obligations arise from contract, 
        statute, or any other source of law related to such a bond, 
        loan, letter of credit, other borrowing title, obligation of 
        insurance, or other financial indebtedness in physical or 
        dematerialized form, of which--
                    (A) the issuer, obligor, or guarantor is the 
                Government of Puerto Rico; and
                    (B) the date of issuance or incurrence precedes the 
                date of enactment of this Act.
            (2) Liability claim.--The term ``Liability Claim'' means, as 
        it relates to a Liability--
                    (A) right to payment, whether or not such right is 
                reduced to judgment, liquidated, unliquidated, fixed, 
                contingent, matured, unmatured, disputed, undisputed, 
                legal, equitable, secured, or unsecured; or
                    (B) right to an equitable remedy for breach of 
                performance if such breach gives rise to a right to 
                payment, whether or not such right to an equitable 
                remedy is reduced to judgment, fixed, contingent, 
                matured, unmatured, disputed, undisputed, secured, or 
                unsecured.

    (b) In General.--Except as provided in subsection (c) of this 
section, the establishment of an Oversight Board for Puerto Rico (i.e., 
the enactment of this Act) in accordance with section 101 operates with 
respect to a Liability as a stay, applicable to all entities (as such 
term is defined in section 101 of title 11, United States Code), of--
            (1) the commencement or continuation, including the issuance 
        or employment of process, of a judicial, administrative, or 
        other action or proceeding against the Government of Puerto Rico 
        that was or could have been commenced before the enactment of 
        this Act, or to recover a Liability Claim against the Government 
        of Puerto Rico that arose before the enactment of this Act;
            (2) the enforcement, against the Government of Puerto Rico 
        or against property of the Government of Puerto Rico, of a 
        judgment obtained before the enactment of this Act;
            (3) any act to obtain possession of property of the 
        Government of Puerto Rico or of property from the Government of 
        Puerto Rico or to exercise control over property of the 
        Government of Puerto Rico;

[[Page 130 STAT. 588]]

            (4) any act to create, perfect, or enforce any lien against 
        property of the Government of Puerto Rico;
            (5) any act to create, perfect, or enforce against property 
        of the Government of Puerto Rico any lien to the extent that 
        such lien secures a Liability Claim that arose before the 
        enactment of this Act;
            (6) any act to collect, assess, or recover a Liability Claim 
        against the Government of Puerto Rico that arose before the 
        enactment of this Act; and
            (7) the setoff of any debt owing to the Government of Puerto 
        Rico that arose before the enactment of this Act against any 
        Liability Claim against the Government of Puerto Rico.

    (c) Stay Not Operable.--The establishment of an Oversight Board for 
Puerto Rico in accordance with section 101 does not operate as a stay--
            (1) solely under subsection (b)(1) of this section, of the 
        continuation of, including the issuance or employment of 
        process, of a judicial, administrative, or other action or 
        proceeding against the Government of Puerto Rico that was 
        commenced on or before December 18, 2015; or
            (2) of the commencement or continuation of an action or 
        proceeding by a governmental unit to enforce such governmental 
        unit's or organization's police and regulatory power, including 
        the enforcement of a judgment other than a money judgment, 
        obtained in an action or proceeding by the governmental unit to 
        enforce such governmental unit's or organization's police or 
        regulatory power.

    (d) <<NOTE: Deadline. Time periods.>>  Continuation of Stay.--Except 
as provided in subsections (e), (f), and (g) the stay under subsection 
(b) continues until the earlier of--
            (1) the later of--
                    (A) the later of--
                          (i) February 15, 2017; or
                          (ii) six months after the establishment of an 
                      Oversight Board for Puerto Rico as established by 
                      section 101(b);
                    (B) <<NOTE: Certification.>>  the date that is 75 
                days after the date in subparagraph (A) if the Oversight 
                Board delivers a certification to the Governor that, in 
                the Oversight Board's sole discretion, an additional 75 
                days are needed to seek to complete a voluntary process 
                under title VI of this Act with respect to the 
                government of the Commonwealth of Puerto Rico or any of 
                its territorial instrumentalities; or
                    (C) <<NOTE: Determination.>>  the date that is 60 
                days after the date in subparagraph (A) if the district 
                court to which an application has been submitted under 
                subparagraph 601(m)(1)(D) of this Act determines, in the 
                exercise of the court's equitable powers, that an 
                additional 60 days are needed to complete a voluntary 
                process under title VI of this Act with respect to the 
                government of the Commonwealth of Puerto Rico or any of 
                its territorial instrumentalities; or
            (2) with respect to the government of the Commonwealth of 
        Puerto Rico or any of its territorial instrumentalities, the 
        date on which a case is filed by or on behalf of the government 
        of the Commonwealth of Puerto Rico or any of its territorial 
        instrumentalities, as applicable, under title III.

    (e) Jurisdiction, Relief From Stay.--

[[Page 130 STAT. 589]]

            (1) The United States District Court for the District of 
        Puerto Rico shall have original and exclusive jurisdiction of 
        any civil actions arising under or related to this section.
            (2) On motion of or action filed by a party in interest and 
        after notice and a hearing, the United States District Court for 
        the District of Puerto Rico, for cause shown, shall grant relief 
        from the stay provided under subsection (b) of this section.

    (f) <<NOTE: Time periods. Notice. Courts.>>  Termination of Stay; 
Hearing.--Forty-five days after a request under subsection (e)(2) for 
relief from the stay of any act against property of the Government of 
Puerto Rico under subsection (b), such stay is terminated with respect 
to the party in interest making such request, unless the court, after 
notice and a hearing, orders such stay continued in effect pending the 
conclusion of, or as a result of, a final hearing and determination 
under subsection (e)(2). A hearing under this subsection may be a 
preliminary hearing, or may be consolidated with the final hearing under 
subsection (e)(2). The court shall order such stay continued in effect 
pending the conclusion of the final hearing under subsection (e)(2) if 
there is a reasonable likelihood that the party opposing relief from 
such stay will prevail at the conclusion of such final hearing. If the 
hearing under this subsection is a preliminary hearing, then such final 
hearing shall be concluded not later than thirty days after the 
conclusion of such preliminary hearing, unless the thirty-day period is 
extended with the consent of the parties in interest or for a specific 
time which the court finds is required by compelling circumstances.

    (g) <<NOTE: Courts.>>  Relief To Prevent Irreparable Damage.--Upon 
request of a party in interest, the court, with or without a hearing, 
shall grant such relief from the stay provided under subsection (b) as 
is necessary to prevent irreparable damage to the interest of an entity 
in property, if such interest will suffer such damage before there is an 
opportunity for notice and a hearing under subsection (e) or (f).

    (h) Act in Violation of Stay Is Void.--Any order, judgment, or 
decree entered in violation of this section and any act taken in 
violation of this section is void, and shall have no force or effect, 
and any person found to violate this section may be liable for damages, 
costs, and attorneys' fees incurred in defending any action taken in 
violation of this section, and the Oversight Board or the Government of 
Puerto Rico may seek an order from the court enforcing the provisions of 
this section.
    (i) <<NOTE: Definition.>>  Government of Puerto Rico.--For purposes 
of this section, the term ``Government of Puerto Rico'', in addition to 
the definition set forth in section 5(11) of this Act, shall include--
            (1) the individuals, including elected and appointed 
        officials, directors, officers of and employees acting in their 
        official capacity on behalf of the Government of Puerto Rico; 
        and
            (2) the Oversight Board, including the directors and 
        officers of and employees acting in their official capacity on 
        behalf of the Oversight Board.

    (j) No Default Under Existing Contracts.--
            (1) Notwithstanding any contractual provision or applicable 
        law to the contrary and so long as a stay under this section is 
        in effect, the holder of a Liability Claim or any other claim 
        (as such term is defined in section 101 of title 11, United 
        States Code) may not exercise or continue to exercise any

[[Page 130 STAT. 590]]

        remedy under a contract or applicable law in respect to the 
        Government of Puerto Rico or any of its property--
                    (A) that is conditioned upon the financial condition 
                of, or the commencement of a restructuring, insolvency, 
                bankruptcy, or other proceeding (or a similar or 
                analogous process) by, the Government of Puerto Rico, 
                including a default or an event of default thereunder; 
                or
                    (B) with respect to Liability Claims--
                          (i) for the non-payment of principal or 
                      interest; or
                          (ii) for the breach of any condition or 
                      covenant.
            (2) <<NOTE: Definition.>>  The term ``remedy'' as used in 
        paragraph (1) shall be interpreted broadly, and shall include 
        any right existing in law or contract, including any right to--
                    (A) setoff;
                    (B) apply or appropriate funds;
                    (C) seek the appointment of a custodian (as such 
                term is defined in section 101(11) of title 11, United 
                States Code);
                    (D) seek to raise rates; or
                    (E) exercise control over property of the Government 
                of Puerto Rico.
            (3) Notwithstanding any contractual provision or applicable 
        law to the contrary and so long as a stay under this section is 
        in effect, a contract to which the Government of Puerto Rico is 
        a party may not be terminated or modified, and any right or 
        obligation under such contract may not be terminated or 
        modified, solely because of a provision in such contract is 
        conditioned on--
                    (A) the insolvency or financial condition of the 
                Government of Puerto Rico at any time prior to the 
                enactment of this Act;
                    (B) the adoption of a resolution or establishment of 
                an Oversight Board pursuant to section 101 of this Act; 
                or
                    (C) a default under a separate contract that is due 
                to, triggered by, or a result of the occurrence of the 
                events or matters in paragraph (1)(B).
            (4) Notwithstanding any contractual provision to the 
        contrary and so long as a stay under this section is in effect, 
        a counterparty to a contract with the Government of Puerto Rico 
        for the provision of goods and services shall, unless the 
        Government of Puerto Rico agrees to the contrary in writing, 
        continue to perform all obligations under, and comply with the 
        terms of, such contract, provided that the Government of Puerto 
        Rico is not in default under such contract other than as a 
        result of a condition specified in paragraph (3).

    (k) Effect.--This section does not discharge an obligation of the 
Government of Puerto Rico or release, invalidate, or impair any security 
interest or lien securing such obligation. This section does not impair 
or affect the implementation of any restructuring support agreement 
executed by the Government of Puerto Rico to be implemented pursuant to 
Puerto Rico law specifically enacted for that purpose prior to the 
enactment of this Act or the obligation of the Government of Puerto Rico 
to proceed in good faith as set forth in any such agreement.

[[Page 130 STAT. 591]]

    (l) Payments on Liabilities.--Nothing in this section shall be 
construed to prohibit the Government of Puerto Rico from making any 
payment on any Liability when such payment becomes due during the term 
of the stay, and to the extent the Oversight Board, in its sole 
discretion, determines it is feasible, the Government of Puerto Rico 
shall make interest payments on outstanding indebtedness when such 
payments become due during the length of the stay.
    (m) Findings.--Congress finds the following:
            (1) A combination of severe economic decline, and, at times, 
        accumulated operating deficits, lack of financial transparency, 
        management inefficiencies, and excessive borrowing has created a 
        fiscal emergency in Puerto Rico.
            (2) As a result of its fiscal emergency, the Government of 
        Puerto Rico has been unable to provide its citizens with 
        effective services.
            (3) The current fiscal emergency has also affected the long-
        term economic stability of Puerto Rico by contributing to the 
        accelerated outmigration of residents and businesses.
            (4) A comprehensive approach to fiscal, management, and 
        structural problems and adjustments that exempts no part of the 
        Government of Puerto Rico is necessary, involving independent 
        oversight and a Federal statutory authority for the Government 
        of Puerto Rico to restructure debts in a fair and orderly 
        process.
            (5) Additionally, an immediate--but temporary--stay is 
        essential to stabilize the region for the purposes of resolving 
        this territorial crisis.
                    (A) The stay advances the best interests common to 
                all stakeholders, including but not limited to a 
                functioning independent Oversight Board created pursuant 
                to this Act to determine whether to appear or intervene 
                on behalf of the Government of Puerto Rico in any 
                litigation that may have been commenced prior to the 
                effectiveness or upon expiration of the stay.
                    (B) The stay is limited in nature and narrowly 
                tailored to achieve the purposes of this Act, including 
                to ensure all creditors have a fair opportunity to 
                consensually renegotiate terms of repayment based on 
                accurate financial information that is reviewed by an 
                independent authority or, at a minimum, receive a 
                recovery from the Government of Puerto Rico equal to 
                their best possible outcome absent the provisions of 
                this Act.
            (6) Finally, the ability of the Government of Puerto Rico to 
        obtain funds from capital markets in the future will be severely 
        diminished without congressional action to restore its financial 
        accountability and stability.

    (n) Purposes.--The purposes of this section are to--
            (1) provide the Government of Puerto Rico with the resources 
        and the tools it needs to address an immediate existing and 
        imminent crisis;
            (2) allow the Government of Puerto Rico a limited period of 
        time during which it can focus its resources on negotiating a 
        voluntary resolution with its creditors instead of defending 
        numerous, costly creditor lawsuits;

[[Page 130 STAT. 592]]

            (3) provide an oversight mechanism to assist the Government 
        of Puerto Rico in reforming its fiscal governance and support 
        the implementation of potential debt restructuring;
            (4) make available a Federal restructuring authority, if 
        necessary, to allow for an orderly adjustment of all of the 
        Government of Puerto Rico's liabilities; and
            (5) benefit the lives of 3.5 million American citizens 
        living in Puerto Rico by encouraging the Government of Puerto 
        Rico to resolve its longstanding fiscal governance issues and 
        return to economic growth.

    (o) Voting on Voluntary Agreements Not Stayed.--Notwithstanding any 
provision in this section to the contrary, nothing in this section shall 
prevent the holder of a Liability Claim from voting on or consenting to 
a proposed modification of such Liability Claim under title VI of this 
Act.
SEC. 406. PURCHASES BY TERRITORY GOVERNMENTS.

    The text of section 302 of the Omnibus Insular Areas Act of 1992 (48 
U.S.C. 1469e), is amended to read as follows: ``The Governments of the 
Commonwealth of Puerto Rico, Guam, American Samoa, the Commonwealth of 
the Northern Mariana Islands, and the United States Virgin Islands are 
authorized to make purchases through the General Services 
Administration.''.
SEC. 407. <<NOTE: 48 USC 2195.>>  PROTECTION FROM INTER-DEBTOR 
                        TRANSFERS.

    (a) Protection of Creditors.--While an Oversight Board for Puerto 
Rico is in existence, if any property of any territorial instrumentality 
of Puerto Rico is transferred in violation of applicable law under which 
any creditor has a valid pledge of, security interest in, or lien on 
such property, or which deprives any such territorial instrumentality of 
property in violation of applicable law assuring the transfer of such 
property to such territorial instrumentality for the benefit of its 
creditors, then the transferee shall be liable for the value of such 
property.
    (b) Enforceability.--A creditor may enforce rights under this 
section by bringing an action in the United States District Court for 
the District of Puerto Rico after the expiration or lifting of the stay 
of section 405, unless a stay under title III is in effect.
SEC. 408. GAO REPORT ON SMALL BUSINESS ADMINISTRATION PROGRAMS IN 
                        PUERTO RICO.

    Section 15 of the Small Business Act (15 U.S.C. 644) is amended by 
adding at the end the following new subsection:
    ``(t) GAO Report on Small Business Administration Programs in Puerto 
Rico.--Not later than one year after the date of enactment of this 
subsection, the Comptroller General of the United States shall submit to 
the Committee on Small Business of the House of Representatives and the 
Committee on Small Business and Entrepreneurship of the Senate a report 
on the application and utilization of contracting activities of the 
Administration (including contracting activities relating to HUBZone 
small business concerns) in Puerto Rico. The report shall also identify 
any provisions of Federal law that may create an obstacle to the 
efficient implementation of such contracting activities.''.

[[Page 130 STAT. 593]]

SEC. 409. <<NOTE: 48 USC 2196.>>  CONGRESSIONAL TASK FORCE ON 
                        ECONOMIC GROWTH IN PUERTO RICO.

    (a) Establishment.--There is established within the legislative 
branch a Congressional Task Force on Economic Growth in Puerto Rico 
(hereinafter referred to as the ``Task Force'').
    (b) Membership.--The Task Force shall be composed of eight members 
as follows:
            (1) One member of the House of Representatives, who shall be 
        appointed by the Speaker of the House of Representatives, in 
        coordination with the Chairman of the Committee on Natural 
        Resources of the House of Representatives.
            (2) One member of the House of Representatives, who shall be 
        appointed by the Speaker of the House of Representatives, in 
        coordination with the Chairman of the Committee on Ways and 
        Means of the House of Representatives.
            (3) One member of the House of Representatives, who shall be 
        appointed by the Minority Leader of the House of 
        Representatives, in coordination with the ranking minority 
        member of the Committee on Natural Resources of the House of 
        Representatives.
            (4) One member of the House of Representatives, who shall be 
        appointed by the Minority Leader of the House of 
        Representatives, in coordination with the ranking minority 
        member of the Committee on Ways and Means of the House of 
        Representatives.
            (5) One member of the Senate, who shall be appointed by the 
        Majority Leader of the Senate, in coordination with the Chairman 
        of the Committee on Energy and Natural Resources of the Senate.
            (6) One member of the Senate, who shall be appointed by the 
        Majority Leader of the Senate, in coordination with the Chairman 
        of the Committee on Finance of the Senate.
            (7) One member of the Senate, who shall be appointed by the 
        Minority Leader of the Senate, in coordination with the ranking 
        minority member of the Committee on Energy and Natural Resources 
        of the Senate.
            (8) One member of the Senate, who shall be appointed by the 
        Minority Leader of the Senate, in coordination with the ranking 
        minority member of the Committee on Finance of the Senate.

    (c) Deadline for Appointment.--All appointments to the Task Force 
shall be made not later than 15 days after the date of enactment of this 
Act.
    (d) Chair.--The Speaker shall designate one Member to serve as chair 
of the Task Force.
    (e) Vacancies.--Any vacancy in the Task Force shall be filled in the 
same manner as the original appointment.
    (f) <<NOTE: Time period.>>  Status Update.--Between September 1, 
2016, and September 15, 2016, the Task Force shall provide a status 
update to the House and Senate that includes--
            (1) information the Task Force has collected; and
            (2) a discussion on matters the chairman of the Task Force 
        deems urgent for consideration by Congress.

    (g) Report.--Not later than December 31, 2016, the Task Force shall 
issue a report of its findings to the House and Senate regarding--

[[Page 130 STAT. 594]]

            (1) impediments in current Federal law and programs to 
        economic growth in Puerto Rico including equitable access to 
        Federal health care programs;
            (2) recommended changes to Federal law and programs that, if 
        adopted, would serve to spur sustainable long-term economic 
        growth, job creation, reduce child poverty, and attract 
        investment in Puerto Rico;
            (3) the economic effect of Administrative Order No. 346 of 
        the Department of Health of the Commonwealth of Puerto Rico 
        (relating to natural products, natural supplements, and dietary 
        supplements) or any successor or substantially similar order, 
        rule, or guidance of the Commonwealth of Puerto Rico; and
            (4) additional information the Task Force deems appropriate.

    (h) Consensus Views.--To the greatest extent practicable, the report 
issued under subsection (f) shall reflect the shared views of all eight 
Members, except that the report may contain dissenting views.
    (i) Hearings and Sessions.--The Task Force may, for the purpose of 
carrying out this section, hold hearings, sit and act at times and 
places, take testimony, and receive evidence as the Task Force considers 
appropriate. If the Task Force holds hearings, at least one such hearing 
must be held in Puerto Rico.
    (j) Stakeholder Participation.--In carrying out its duties, the Task 
Force shall consult with the Puerto Rico Legislative Assembly, the 
Puerto Rico Department of Economic Development and Commerce, and the 
private sector of Puerto Rico.
    (k) Resources.--The Task Force shall carry out its duties by 
utilizing existing facilities, services, and staff of the House of 
Representatives and Senate, except that no additional funds are 
authorized to be appropriated to carry out this section.
    (l) Termination.--The Task Force shall terminate upon issuing the 
report required under subsection (f).
SEC. 410. <<NOTE: 48 USC 2197.>>  REPORT.

    Not later than 18 months after the date of the enactment of this 
Act, the Comptroller General shall submit a report to the Committee on 
Natural Resources of the House of Representatives and the Committee on 
Energy and Natural Resources of the Senate describing--
            (1) the conditions which led to the level of debt, which 
        should be analyzed, per capita and based upon overall economic 
        activity;
            (2) how actions of the territorial government improved or 
        impaired the territory's financial conditions; and
            (3) recommendations on non-fiscal actions, or policies that 
        would not imperil America's homeland and national security, that 
        could be taken by Congress or the Administration to avert future 
        indebtedness of territories, while respecting sovereignty and 
        constitutional parameters.
SEC. 411. <<NOTE: 48 USC 2198.>>  REPORT ON TERRITORIAL DEBT.

    (a) Report Required.--Not later than one year after the date of the 
enactment of this Act, and thereafter not less than once every two 
years, the Comptroller General of the United States shall submit to 
Congress a report on the public debt of each territory, including--

[[Page 130 STAT. 595]]

            (1) the historical levels of each territory's public debt, 
        current amount and composition of each territory's public debt, 
        and future projections of each territory's public debt;
            (2) the historical levels of each territory's revenue, 
        current amount and composition of each territory's revenue, and 
        future projections of each territory's revenue;
            (3) the drivers and composition of each territory's public 
        debt;
            (4) the effect of Federal laws, mandates, rules, and 
        regulations on each territory's public debt; and
            (5) the ability of each territory to repay it's public debt.

    (b) Materials.--The government of each territory shall make 
available to the Comptroller General of the United States all materials 
necessary to carry out this section.
SEC. 412. <<NOTE: 48 USC 2199.>>  EXPANSION OF HUBZONES IN PUERTO 
                        RICO.

    (a)  In General.--
            (1) Section 3(p)(4)(A) of the Small Business Act (15 U.S.C. 
        632(p)(4)(A)) is amended to read as follows:
                    ``(A) <<NOTE: Definition.>>  Qualified census 
                tract.--
                          ``(i) In general.--The term `qualified census 
                      tract' has the meaning given that term in section 
                      42(d)(5)(B)(ii) of the Internal Revenue Code of 
                      1986.
                          ``(ii) <<NOTE: Applicability. Time period.>>  
                      Exception.--For any metropolitan statistical area 
                      in the Commonwealth of Puerto Rico, the term 
                      `qualified census tract' has the meaning given 
                      that term in section 42(d)(5)(B)(ii) of the 
                      Internal Revenue Code of 1986 as applied without 
                      regard to subclause (II) of such section, except 
                      that this clause shall only apply--
                                    ``(I) 10 years after the date that 
                                the Administrator implements this 
                                clause, or
                                    ``(II) the date on which the 
                                Financial Oversight and Management Board 
                                for the Commonwealth of Puerto Rico 
                                created by the Puerto Rico Oversight, 
                                Management, and Economic Stability Act 
                                ceases to exist,
                      whichever event occurs first.''.
            (2) <<NOTE: Deadline. 15 USC 632 note.>>  Regulations.--The 
        Administrator of the Small Business Administration shall issue 
        regulations to implement the amendment made by paragraph (1) not 
        later than 90 days after the date of the enactment of this Act.

    (b) Improving Oversight.--
            (1) <<NOTE: Deadline. Criteria. Guidance.>>  Guidance.--Not 
        later than 270 days after the date of the enactment of this Act, 
        the Administrator of the Small Business Administration shall 
        develop and implement criteria and guidance on using a risk-
        based approach to requesting and verifying information from 
        entities applying to be designated or recertified as qualified 
        HUBZone small business concerns (as defined in section 3(p)(5) 
        of the Small Business Act (15 U.S.C. 632(p)(5))).
            (2) <<NOTE: Deadlines. Reports.>>  Assessment.--Not later 1 
        year after the date on which the criteria and guidance described 
        in paragraph (1) is implemented, the Comptroller General of the 
        United States shall begin an assessment of such criteria and 
        guidance. Not later than 6 months after beginning such an 
        assessment, the Comptroller General shall submit a report to the 
        Committee on

[[Page 130 STAT. 596]]

        Small Business and Entrepreneurship of the Senate and the 
        Committee on Small Business of the House of Representatives that 
        includes--
                    (A) an assessment of the criteria and guidance 
                issued by the Administrator of the Small Business 
                Administration in accordance with paragraph (1);
                    (B) an assessment of the implementation of the 
                criteria and guidance issued by issued by the 
                Administrator of the Small Business Administration in 
                accordance with paragraph (1);
                    (C) an assessment as to whether these measures have 
                successfully ensured that only qualified HUBZone small 
                business concerns are participating in the HUBZone 
                program under section 31 of the Small Business Act (15 
                U.S.C. 657a);
                    (D) an assessment as to whether the reforms made by 
                the criteria and guidance implemented under paragraph 
                (1) have resulted in job creation in the Commonwealth of 
                Puerto Rico; and
                    (E) <<NOTE: Recommenda- tions.>>  recommendations on 
                how to improve controls in the HUBZone program.
SEC. 413. <<NOTE: 48 USC 2200.>>  DETERMINATION ON DEBT.

    Nothing in this Act shall be interpreted to restrict--
            (1) the ability of the Puerto Rico Commission for the 
        Comprehensive Audit of the Public Credit to file its reports; or
            (2) the review and consideration of the Puerto Rico 
        Commission's findings by Puerto Rico's government or an 
        Oversight Board for Puerto Rico established under section 101.

           TITLE V--PUERTO RICO INFRASTRUCTURE REVITALIZATION

SEC. 501. <<NOTE: 48 USC 2211.>>  DEFINITIONS.

    In this title:
            (1) Act 76.--The term ``Act 76'' means Puerto Rico Act 76-
        2000 (3 L.P.R.A. 1931 et seq.), approved on May 5, 2000, as 
        amended.
            (2) Critical project.--The term ``Critical Project'' means a 
        project identified under the provisions of this title and 
        intimately related to addressing an emergency whose approval, 
        consideration, permitting, and implementation shall be expedited 
        and streamlined according to the statutory process provided by 
        Act 76, or otherwise adopted pursuant to this title.
            (3) Energy commission of puerto rico.--The term ``Energy 
        Commission of Puerto Rico'' means the Puerto Rico Energy 
        Commission as established by Subtitle B of Puerto Rico Act 57-
        2014.
            (4) Energy projects.--The term ``Energy Projects'' means 
        those projects addressing the generation, distribution, or 
        transmission of energy.
            (5) Emergency.--The term ``emergency'' means any event or 
        grave problem of deterioration in the physical infrastructure 
        for the rendering of essential services to the people, or that 
        endangers the life, public health, or safety of the population 
        or of a sensitive ecosystem, or as otherwise defined by section

[[Page 130 STAT. 597]]

        1 of Act 76 (3 L.P.R.A. 1931). This shall include problems in 
        the physical infrastructure for energy, water, sewer, solid 
        waste, highways or roads, ports, telecommunications, and other 
        similar infrastructure.
            (6) Environmental quality board.--The term ``Environmental 
        Quality Board'' means the Puerto Rico Environmental Quality 
        Board, a board within the executive branch of the Government of 
        Puerto Rico as established by section 7 of Puerto Rico Act 416-
        2004 (12 L.P.R.A. 8002a).
            (7) Expedited permitting process.--The term ``Expedited 
        Permitting Process'' means a Puerto Rico Agency's alternate 
        procedures, conditions, and terms mirroring those established 
        under Act 76 (3 L.P.R.A. 1932) and pursuant to this title shall 
        not apply to any Federal law, statute, or requirement.
            (8) Governor.--The term ``Governor'' means the Governor of 
        Puerto Rico.
            (9) Interagency environmental subcommittee.--The term 
        ``Interagency Environmental Subcommittee'' means the Interagency 
        Subcommittee on Expedited Environmental Regulations as further 
        described by section 504.
            (10) Legislature.--The term ``Legislature'' means the 
        Legislature of Puerto Rico.
            (11) Planning board.--The term ``Planning Board'' means the 
        Puerto Rico Planning Board, a board within the executive branch 
        of the Government of Puerto Rico established by Puerto Rico Act 
        75-1975 (23 L.P.R.A. 62 et seq.).
            (12) Project sponsor.--The term ``Project Sponsor'' means a 
        Puerto Rico Agency or private party proposing the development of 
        an existing, ongoing, or new infrastructure project or Energy 
        Project.
            (13) Puerto rico agency or agencies.--The terms ``Puerto 
        Rico Agency'' or ``Puerto Rico Agencies'' means any board, body, 
        board of examiners, public corporation, commission, independent 
        office, division, administration, bureau, department, authority, 
        official, person, entity, municipality, or any instrumentality 
        of Puerto Rico, or an administrative body authorized by law to 
        perform duties of regulating, investigating, or that may issue a 
        decision, or with the power to issue licenses, certificates, 
        permits, concessions, accreditations, privileges, franchises, 
        except the Senate and the House of Representatives of the 
        Legislature and the judicial branch.
            (14) Puerto rico electric power authority.--The term 
        ``Puerto Rico Electric Power Authority'' means the Puerto Rico 
        Electric Power Authority established by Puerto Rico Act 83-1941.
SEC. 502. <<NOTE: 48 USC 2212.>>  POSITION OF REVITALIZATION 
                        COORDINATOR.

    (a) Establishment.--There is established, under the Oversight Board, 
the position of the Revitalization Coordinator.
    (b) Appointment.--
            (1) In general.--The Revitalization Coordinator shall be 
        appointed by the Governor as follows:
                    (A) <<NOTE: Deadline.>>  Prior to the appointment of 
                the Revitalization Coordinator and within 60 days of the 
                appointment of the full membership of the Oversight 
                Board, the Oversight Board shall submit to the Governor 
                no less than three nominees for appointment.

[[Page 130 STAT. 598]]

                    (B) <<NOTE: Consultation. Deadline.>>  In 
                consultation with the Oversight Board, not later than 10 
                days after receiving the nominations under subparagraph 
                (A), the Governor shall appoint one of the nominees as 
                the Revitalization Coordinator. Such appointment shall 
                be effective immediately.
                    (C) If the Governor fails to select a Revitalization 
                Coordinator, the Oversight Board shall, by majority 
                vote, appoint a Revitalization Coordinator from the list 
                of nominees provided under paragraph (A).
            (2) <<NOTE: Time period.>>  Qualifications.--In selecting 
        nominees under paragraph (1)(A), the Oversight Board shall only 
        nominate persons who--
                    (A) have substantial knowledge and expertise in the 
                planning, predevelopment, financing, development, 
                operations, engineering, or market participation of 
                infrastructure projects, provided that stronger 
                consideration may be given to candidates who have 
                experience with Energy Projects and the laws and 
                regulations of Puerto Rico that may be subject to an 
                Expedited Permitting Process;
                    (B) does not currently provide goods or services to 
                the government of Puerto Rico (and, as applicable, is 
                not the spouse, parent, child, or sibling of a person 
                who provides or has provided goods and services to the 
                government of Puerto Rico in the preceding 3 calendar 
                years); and
                    (C) shall not be an officer, employee of, or former 
                officer or employee of the government of Puerto Rico in 
                the preceding 3 calendar years.
            (3) Compensation.--The Revitalization Coordinator shall be 
        compensated at an annual rate determined by the Oversight Board 
        sufficient in the judgment of the Oversight Board to obtain the 
        services of a person with the skills and experience required to 
        discharge the duties of the position, but such compensation 
        shall not exceed the annual salary of the Executive Director.

    (c) Assignment of Personnel.--The Executive Director of the 
Oversight Board may assign Oversight Board personnel to assist the 
Revitalization Coordinator.
    (d) Removal.--
            (1) In general.--The Revitalization Coordinator may be 
        removed for any reason, in the Oversight Board's discretion.
            (2) Termination of position.--Upon the termination of the 
        Oversight Board pursuant to section 209 of this Act, the 
        position of the Revitalization Coordinator shall terminate.
SEC. 503. <<NOTE: 48 USC 2213.>>  CRITICAL PROJECTS.

    (a) Identification of Projects.--
            (1) Project submission.--Any Project Sponsor may submit, so 
        long as the Oversight Board is in operation, any existing, 
        ongoing, or proposed project to the Revitalization Coordinator. 
        The Revitalization Coordinator shall require such submission to 
        include--
                    (A) the impact the project will have on an 
                emergency;
                    (B) the availability of immediate private capital or 
                other funds, including loan guarantees, loans, or grants 
                to implement, operate, or maintain the project;

[[Page 130 STAT. 599]]

                    (C) the cost of the project and amount of Puerto 
                Rico government funds, if any, necessary to complete and 
                maintain the project;
                    (D) the environmental and economic benefits provided 
                by the project, including the number of jobs to be 
                created that will be held by residents of Puerto Rico 
                and the expected economic impact, including the impact 
                on ratepayers, if applicable;
                    (E) the status of the project if it is existing or 
                ongoing; and
                    (F) in addition to the requirements found in 
                subparagraphs (A) through (E), the Revitalization 
                Coordinator may require such submission to include any 
                or all of the following criteria that assess how the 
                project will--
                          (i) reduce reliance on oil for electric 
                      generation in Puerto Rico;
                          (ii) improve performance of energy 
                      infrastructure and overall energy efficiency;
                          (iii) expedite the diversification and 
                      conversion of fuel sources for electric generation 
                      from oil to natural gas and renewables in Puerto 
                      Rico as defined under applicable Puerto Rico laws;
                          (iv) promote the development and utilization 
                      of energy sources found on Puerto Rico;
                          (v) contribute to transitioning to privatized 
                      generation capacities in Puerto Rico;
                          (vi) support the Energy Commission of Puerto 
                      Rico in achievement of its goal of reducing energy 
                      costs and ensuring affordable energy rates for 
                      consumers and business; or
                          (vii) achieve in whole or in part the 
                      recommendations, if feasible, of the study in 
                      section 505(d) of this title to the extent such 
                      study is completed and not inconsistent with 
                      studies or plans otherwise required under Puerto 
                      Rico laws.
            (2) <<NOTE: Deadline. Consultation.>>  Identification of 
        relevant puerto rico agencies.--Within 20 days of receiving a 
        project submission under paragraph (1), the Revitalization 
        Coordinator shall, in consultation with the Governor, identify 
        all Puerto Rico Agencies that will have a role in the 
        permitting, approval, authorizing, or other activity related to 
        the development of such project submission.
            (3) <<NOTE: Deadlines.>>  Expedited permitting process.--
                    (A) Submission of expedited permitting process.--Not 
                later than 20 days after receiving a project submission, 
                each Puerto Rico Agency identified in paragraph (1) 
                shall submit to the Revitalization Coordinator the 
                Agency's Expedited Permitting Process.
                    (B) Failure to provide expedited permitting 
                process.--If a Puerto Rico Agency fails to provide an 
                Expedited Permitting Process within 20 days of receiving 
                a project submission, the Revitalization Coordinator 
                shall consult with the Governor to develop within 20 
                days an Expedited Permitting Process for the Agency.
                    (C) Implementation and prioritization.--The 
                Revitalization Coordinator shall require Puerto Rico 
                Agencies to implement the Expedited Permitting Process 
                for Critical Projects. Critical Projects shall be 
                prioritized to

[[Page 130 STAT. 600]]

                the maximum extent possible in each Puerto Rico Agency 
                regardless of any agreements transferring or delegating 
                permitting authority to any other Territorial 
                Instrumentality or municipality.

    (b) Critical Project Report.--
            (1) <<NOTE: Consultation.>>  In general.--For each submitted 
        project, the Revitalization Coordinator in consultation with the 
        Governor and relevant Puerto Rico Agencies identified in 
        subsection (a)(2) shall develop a Critical Project Report within 
        60 days of the project submission, which shall include:
                    (A) <<NOTE: Assessment.>>  An assessment of how well 
                the project meets the criteria in subsection (a)(1).
                    (B) <<NOTE: Recommenda- tions.>>  A recommendation 
                by the Governor whether the project should be considered 
                a Critical Project. If the Governor fails to provide a 
                recommendation during the development of the Critical 
                Project Report, the failure shall constitute a 
                concurrence with the Revitalization Coordinator's 
                recommendation in subparagraph (E).
                    (C) <<NOTE: Determination.>>  In the case of a 
                project that may affect the implementation of Land-Use 
                Plans, as defined by Puerto Rico Act 550-2004, a 
                determination by the Planning Board will be required 
                within the 60-day timeframe. If the Planning Board 
                determines such project will be inconsistent with 
                relevant Land-Use Plans, then the project will be deemed 
                ineligible for Critical Project designation.
                    (D) <<NOTE: Recommenda- tion. Determination. Time 
                period.>>  In the case of an Energy Project that will 
                connect with the Puerto Rico Electric Power Authority's 
                transmission or distribution facilities, a 
                recommendation by the Energy Commission of Puerto Rico, 
                if the Energy Commission determines such Energy Project 
                will affect an approved Integrated Resource Plan, as 
                defined under Puerto Rico Act 54-2014. If the Energy 
                Commission determines the Energy Project will adversely 
                affect an approved Integrated Resource Plan, then the 
                Energy Commission shall provide the reasons for such 
                determination and the Energy Project shall be ineligible 
                for Critical Project designation, provided that such 
                determination must be made during the 60-day timeframe 
                for the development of the Critical Project Report.
                    (E) <<NOTE: Recommenda- tions.>>  A recommendation 
                by the Revitalization Coordinator whether the project 
                should be considered a Critical Project.
            (2) <<NOTE: Time period.>>  Public involvement.--Immediately 
        following the completion of the Critical Project Report, the 
        Revitalization Coordinator shall make such Critical Project 
        Report public and allow a period of 30 days for the submission 
        of comments by residents of Puerto Rico specifically on matters 
        relating to the designation of a project as a Critical Project. 
        The Revitalization Coordinator shall respond to the comments 
        within 30 days of closing the coming period and make the 
        responses publicly available.
            (3) Submission to oversight board.--Not later than 5 days 
        after the Revitalization Coordinator has responded to the 
        comments under paragraph (2), the Revitalization Coordinator 
        shall submit the Critical Project Report to the Oversight Board.

    (c) Action by the Oversight Board.--Not later than 30 days after 
receiving the Critical Project Report, the Oversight Board,

[[Page 130 STAT. 601]]

by majority vote, shall approve or disapprove the project as a Critical 
Project, if the Oversight Board--
            (1) approves the project, the project shall be deemed a 
        Critical Project; and
            (2) disapproves the project, the Oversight Board shall 
        submit to the Revitalization Coordinator in writing the reasons 
        for disapproval.
SEC. 504. <<NOTE: 48 USC 2214.>>  MISCELLANEOUS PROVISIONS.

    (a) Creation of Interagency Environmental Subcommittee.--
            (1) <<NOTE: Deadline. Evaluation.>>  Establishment.--Not 
        later than 60 days after the date on which the Revitalization 
        Coordinator is appointed, the Interagency Environmental 
        Subcommittee shall be established and shall evaluate 
        environmental documents required under Puerto Rico law for any 
        Critical Project within the Expedited Permitting Process 
        established by the Revitalization Coordinator under section 
        503(a)(3).
            (2) <<NOTE: Consultation.>>  Composition.--The Interagency 
        Environmental Subcommittee shall consist of the Revitalization 
        Coordinator, and a representative selected by the Governor in 
        consultation with the Revitalization Coordinator representing 
        each of the following agencies: The Environmental Quality Board, 
        the Planning Board, the Puerto Rico Department of Natural and 
        Environmental Resources, and any other Puerto Rico Agency 
        determined to be relevant by the Revitalization Coordinator.

    (b) Length of Expedited Permitting Process.--With respect to a 
Puerto Rico Agency's activities related only to a Critical Project, such 
Puerto Rico Agency shall operate as if the Governor has declared an 
emergency pursuant to section 2 of Act 76 (3 L.P.R.A. 1932). Section 12 
of Act 76 (3 L.P.R.A. 1942) shall not be applicable to Critical 
Projects. Furthermore, any transactions, processes, projects, works, or 
programs essential to the completion of a Critical Project shall 
continue to be processed and completed under such Expedited Permitting 
Process regardless of the termination of the Oversight Board under 
section 209.
    (c) Expedited Permitting Process Compliance.--
            (1) Written notice.--A Critical Project Sponsor may in 
        writing notify the Oversight Board of the failure of a Puerto 
        Rico Agency or the Revitalization Coordinator to adhere to the 
        Expedited Permitting Process.
            (2) Finding of failure.--If the Oversight Board finds either 
        the Puerto Rico Agency or Revitalization Coordinator has failed 
        to adhere to the Expedited Permitting Process, the Oversight 
        Board shall direct the offending party to comply with the 
        Expedited Permitting Process. The Oversight Board may take such 
        enforcement action as necessary as provided by section 104(l).

    (d) Review of Legislature Acts.--
            (1) Submission of acts to oversight board.--Pursuant to 
        section 204(a), the Governor shall submit to the Oversight Board 
        any law duly enacted during any fiscal year in which the 
        Oversight Board is in operation that may affect the Expedited 
        Permitting Process.
            (2) Finding of oversight board.--Upon receipt of a law under 
        paragraph (1), the Oversight Board shall promptly review

[[Page 130 STAT. 602]]

        whether the law would adversely impact the Expedited Permitting 
        Process and, upon such a finding, the Oversight Board may deem 
        such law to be significantly inconsistent with the applicable 
        Fiscal Plan.

    (e) Establishment of Certain Terms and Conditions.--No Puerto Rico 
Agency may include in any certificate, right-of-way, permit, lease, or 
other authorization issued for a Critical Project any term or condition 
that may be permitted, but is not required, by any applicable Puerto 
Rico law, if the Revitalization Coordinator determines the term or 
condition would prevent or impair the expeditious construction, 
operation, or expansion of the Critical Project. The Revitalization 
Coordinator may request a Puerto Rico Agency to include in any 
certificate, right-of-way, permit, lease, or other authorization, a term 
or condition that may be permitted in accordance with applicable laws if 
the Revitalization Coordinator determines such inclusion would support 
the expeditious construction, operation, or expansion of any Critical 
Project.
    (f) <<NOTE: Public information. Deadline.>>  Disclosure.--All 
Critical Project reports, and justifications for approval or rejection 
of Critical Project status, shall be made publicly available online 
within 5 days of receipt or completion.
SEC. 505. <<NOTE: 48 USC 2215.>>  FEDERAL AGENCY REQUIREMENTS.

    (a) <<NOTE: Deadline.>>  Federal Points of Contact.--At the request 
of the Revitalization Coordinator and within 30 days of receiving such a 
request, each Federal agency with jurisdiction over the permitting, or 
administrative or environmental review of private or public projects in 
Puerto Rico, shall name a Point of Contact who will serve as that 
agency's liaison with the Revitalization Coordinator.

    (b) Federal Grants and Loans.--For each Critical Project with a 
pending or potential Federal grant, loan, or loan guarantee application, 
the Revitalization Coordinator and the relevant Point of Contact shall 
cooperate with each other to ensure expeditious review of such 
application.
    (c) Expedited Reviews and Actions of Federal Agencies.--All reviews 
conducted and actions taken by any Federal agency relating to a Critical 
Project shall be expedited in a manner consistent with completion of the 
necessary reviews and approvals by the deadlines under the Expedited 
Permitting Process, but in no way shall the deadlines established 
through the Expedited Permitting Process be binding on any Federal 
agency.
    (d) Transfer of Study of Electric Rates.--Section 9 of the 
Consolidated and Further Continuing Appropriations Act, 2015 (48 U.S.C. 
1492a) is amended--
            (1) in subsection (a)(5), by inserting ``, except that, with 
        respect to Puerto Rico, the term means, the Secretary of 
        Energy'' after ``Secretary of the Interior''; and
            (2) in subsection (b)--
                    (A) by inserting ``(except in the case of Puerto 
                Rico, in which case not later than 270 days after the 
                date of enactment of the Puerto Rico Oversight, 
                Management, and Economic Stability Act)'' after ``of 
                this Act''; and
                    (B) by inserting ``(except in the case of Puerto 
                Rico)'' after ``Empowering Insular Communities 
                activity''.
SEC. 506. <<NOTE: 48 USC 2216.>>  JUDICIAL REVIEW.

    (a) Deadline for Filing of a Claim.--A claim arising under this 
title must be brought no later than 30 days after the date of the 
decision or action giving rise to the claim.

[[Page 130 STAT. 603]]

    (b) Expedited Consideration.--The District Court for the District of 
Puerto Rico shall set any action brought under this title for expedited 
consideration, taking into account the interest of enhancing Puerto 
Rico's infrastructure for electricity, water and sewer services, roads 
and bridges, ports, and solid waste management to achieve compliance 
with local and Federal environmental laws, regulations, and policies 
while ensuring the continuity of adequate services to the people of 
Puerto Rico and Puerto Rico's sustainable economic development.
SEC. 507. <<NOTE: 48 USC 2217.>>  SAVINGS CLAUSE.

    Nothing in this title is intended to change or alter any Federal 
legal requirements or laws.

                  TITLE VI--CREDITOR COLLECTIVE ACTION

SEC. 601. <<NOTE: 48 USC 2231.>>  CREDITOR COLLECTIVE ACTION.

    (a) Definitions.--In this title:
            (1) Administrative supervisor.--The term ``Administrative 
        Supervisor'' means the Oversight Board established under section 
        101.
            (2) Authorized territorial instrumentality.--The term 
        ``Authorized Territorial Instrumentality'' means a covered 
        territorial instrumentality authorized in accordance with 
        subsection (e).
            (3) Calculation agent.--The term ``Calculation Agent'' means 
        a calculation agent appointed in accordance with subsection (k).
            (4) Capital appreciation bond.--The term ``Capital 
        Appreciation Bond'' means a Bond that does not pay interest on a 
        current basis, but for which interest amounts are added to 
        principal over time as specified in the relevant offering 
        materials for such Bond, including that the accreted interest 
        amount added to principal increases daily.
            (5) Convertible capital appreciation bond.--The term 
        ``Convertible Capital Appreciation Bond'' means a Bond that does 
        not pay interest on a current basis, but for which interest 
        amounts are added to principal over time as specified in the 
        relevant offering materials and which converts to a current pay 
        bond on a future date.
            (6) Information agent.--The term ``Information Agent'' means 
        an information agent appointed in accordance with subsection 
        (l).
            (7) Insured bond.--The term ``Insured Bond'' means a bond 
        subject to a financial guarantee or similar insurance contract, 
        policy or surety issued by a monoline insurer.
            (8) Issuer.--The term ``Issuer'' means, as applicable, the 
        Territory Government Issuer or an Authorized Territorial 
        Instrumentality that has issued or guaranteed at least one Bond 
        that is Outstanding.
            (9) Modification.--The term ``Modification'' means any 
        modification, amendment, supplement or waiver affecting one or 
        more series of Bonds, including those effected by way of 
        exchange, repurchase, conversion, or substitution.

[[Page 130 STAT. 604]]

            (10) <<NOTE: Determination.>>  Outstanding.--The term 
        ``Outstanding,'' in the context of the principal amount of 
        Bonds, shall be determined in accordance with subsection (b).
            (11) Outstanding principal.--The term ``Outstanding 
        Principal'' means--
                    (A) for a Bond that is not a Capital Appreciation 
                Bond or a Convertible Capital Appreciation Bond, the 
                outstanding principal amount of such Bond; and
                    (B) for a Bond that is a Capital Appreciation Bond 
                or a Convertible Capital Appreciation Bond, the current 
                accreted value of such Capital Appreciation Bond or a 
                Convertible Capital Appreciation Bond, as applicable.
            (12) Pool.--The term ``Pool'' means a pool established in 
        accordance with subsection (d).
            (13) Qualifying modification.--The term ``Qualifying 
        Modification'' means a Modification proposed in accordance with 
        subsection (g).
            (14) Secured pool.--The term ``Secured Pool'' means a Pool 
        established in accordance with subsection (d) consisting only of 
        Bonds that are secured by a lien on property, provided that the 
        inclusion of a Bond Claim in such Pool shall not in any way 
        limit or prejudice the right of the Issuer, the Administrative 
        Supervisor, or any creditor to recharacterize or challenge such 
        Bond Claim, or any purported lien securing such Bond Claim, in 
        any other manner in any subsequent proceeding in the event a 
        proposed Qualifying Modification is not consummated.
            (15) Territory government issuer.--The term ``Territory 
        Government Issuer'' means the Government of Puerto Rico or such 
        covered territory for which an Oversight Board has been 
        established pursuant to section 101.

    (b) <<NOTE: Determination.>>  Outstanding Bonds.--In determining 
whether holders of the requisite principal amount of Outstanding Bonds 
have voted in favor of, or consented to, a proposed Qualifying 
Modification, a Bond will be deemed not to be outstanding, and may not 
be counted in a vote or consent solicitation for or against a proposed 
Qualifying Modification, if on the record date for the proposed 
Qualifying Modification--
            (1) the Bond has previously been cancelled or delivered for 
        cancellation or is held for reissuance but has not been 
        reissued;
            (2) the Bond has previously been called for redemption in 
        accordance with its terms or previously become due and payable 
        at maturity or otherwise and the Issuer has previously satisfied 
        its obligation to make, or provide for, all payments due in 
        respect of the Bond in accordance with its terms;
            (3) the Bond has been substituted with a security of another 
        series; or
            (4) the Bond is held by the Issuer or by an Authorized 
        Territorial Instrumentality of the Territory Government Issuer 
        or by a corporation, trust or other legal entity that is 
        controlled by the Issuer or an Authorized Territorial 
        Instrumentality of the Territory Government Issuer, as 
        applicable.

For purposes of this subsection, a corporation, trust or other legal 
entity is controlled by the Issuer or by an Authorized Territorial 
Instrumentality of the Territory Government Issuer if the Issuer or an 
Authorized Territorial Instrumentality of the Territory

[[Page 130 STAT. 605]]

Government Issuer, as applicable, has the power, directly or indirectly, 
through the ownership of voting securities or other ownership interests, 
by contract or otherwise, to direct the management of or elect or 
appoint a majority of the board of directors or other persons performing 
similar functions in lieu of, or in addition to, the board of directors 
of that legal entity.
    (c) Certification of Disenfranchised Bonds.--Prior to any vote on, 
or consent solicitation for, a Qualifying Modification, the Issuer shall 
deliver to the Calculation Agent a certificate signed by an authorized 
representative of the Issuer specifying any Bonds that are deemed not to 
be Outstanding for the purpose of subsection (b) above.
    (d) <<NOTE: Consultation.>>  Determination of Pools for Voting.--The 
Administrative Supervisor, in consultation with the Issuer, shall 
establish Pools in accordance with the following:
            (1) Not less than one Pool shall be established for each 
        Issuer.
            (2) A Pool that contains one or more Bonds that are secured 
        by a lien on property shall be a Secured Pool.
            (3) The Administrative Supervisor shall establish Pools 
        according to the following principles:
                    (A) For each Issuer that has issued multiple Bonds 
                that are distinguished by specific provisions governing 
                priority or security arrangements, including Bonds that 
                have been issued as general obligations of the Territory 
                Government Issuer to which the Territory Government 
                Issuer pledged the full or good faith, credit, and 
                taxing power of the Territory Government Issuer, 
                separate Pools shall be established corresponding to the 
                relative priority or security arrangements of each 
                holder of Bonds against each Issuer, as applicable, 
                provided, however, that the term ``priority'' as used in 
                this section shall not be understood to mean differing 
                payment or maturity dates.
                    (B) For each Issuer that has issued senior and 
                subordinated Bonds, separate Pools shall be established 
                for the senior and subordinated Bonds corresponding to 
                the relative priority or security arrangements.
                    (C) For each Issuer that has issued multiple Bonds, 
                for at least some of which a guarantee of repayment has 
                been provided by the Territory Government Issuer, 
                separate Pools shall be established for such guaranteed 
                and non-guaranteed Bonds.
                    (D) Subject to the other requirements contained in 
                this section, for each Issuer that has issued multiple 
                Bonds, for at least some of which a dedicated revenue 
                stream has been pledged for repayment, separate Pools 
                for such Issuer shall be established as follows--
                          (i) for each dedicated revenue stream that has 
                      been pledged for repayment, not less than one 
                      Secured Pool for Bonds for which such revenue 
                      stream has been pledged, and separate Secured 
                      Pools shall be established for Bonds of different 
                      priority; and
                          (ii) not less than one Pool for all other 
                      Bonds issued by the Issuer for which a dedicated 
                      revenue stream has not been pledged for repayment.

[[Page 130 STAT. 606]]

                    (E) The Administrative Supervisor shall not place 
                into separate Pools Bonds of the same Issuer that have 
                identical rights in security or priority.
            (4) Notwithstanding the preceding provisions of this 
        subsection, solely with respect to a preexisting voluntary 
        agreement as described in section 104(i)(3) of this Act, such 
        voluntary agreement may classify Insured Bonds and uninsured 
        bonds in different Pools and provide different treatment thereof 
        so long as the preexisting voluntary agreement has been agreed 
        to by--
                    (A) holders of a majority in amount of all uninsured 
                bonds outstanding in the modified Pool; and
                    (B) holders (including insurers with power to vote) 
                of a majority in amount of all Insured Bonds.

    (e) Authorization of Territory Instrumentalities.--A covered 
territorial instrumentality is an Authorized Territorial Instrumentality 
if it has been specifically authorized to be eligible to avail itself of 
the procedures under this section by the Administrative Supervisor.
    (f) Information Delivery Requirement.--Before solicitation of 
acceptance or rejection of a Modification under subsection (h), the 
Issuer shall provide to the Calculation Agent, the Information Agent, 
and the Administrative Supervisor, the following information--
            (1) a description of the Issuer's economic and financial 
        circumstances which are, in the Issuer's opinion, relevant to 
        the request for the proposed Qualifying Modification, a 
        description of the Issuer's existing debts, a description of the 
        impact of the proposed Qualifying Modification on the 
        territory's or its territorial instrumentalities' public debt;
            (2) if the Issuer is seeking Modifications affecting any 
        other Pools of Bonds of the Territory Government Issuer or its 
        Authorized Territorial Instrumentalities, a description of such 
        other Modifications;
            (3) <<NOTE: Plan. Certification.>>  if a Fiscal Plan with 
        respect to such Issuer has been certified, the applicable Fiscal 
        Plan certified in accordance with section 201; and
            (4) such other information as may be required under 
        applicable securities laws.

    (g) Qualifying Modification.--A Modification is a Qualifying 
Modification if one of the following processes has occurred:
            (1) Consultation process.--
                    (A) the Issuer proposing the Modification has 
                consulted with holders of Bonds in each Pool of such 
                Issuer prior to soliciting a vote on such Modification;
                    (B) each exchanging, repurchasing, converting, or 
                substituting holder of Bonds of any series in a Pool 
                affected by that Modification is offered the same amount 
                of consideration per amount of principal, the same 
                amount of consideration per amount of interest accrued 
                but unpaid and the same amount of consideration per 
                amount of past due interest, respectively, as that 
                offered to each other exchanging, repurchasing, 
                converting, or substituting holder of Bonds of any 
                series in a Pool affected by that Modification (or, 
                where a menu of instruments or other consideration is 
                offered, each exchanging, repurchasing, converting, or 
                substituting holder of Bonds of any series

[[Page 130 STAT. 607]]

                in a Pool affected by that Modification is offered the 
                same amount of consideration per amount of principal, 
                the same amount of consideration per amount of interest 
                accrued but unpaid and the same amount of consideration 
                per amount of past due interest, respectively, as that 
                offered to each other exchanging, repurchasing, 
                converting, or substituting holder of Bonds of any 
                series in a Pool affected by that Modification electing 
                the same option under such menu of instruments); and
                    (C) <<NOTE: Certification.>>  the Modification is 
                certified by the Administrative Supervisor as being 
                consistent with the requirements set forth in section 
                104(i)(1) and is in the best interests of the creditors 
                and is feasible.
            (2) <<NOTE: Certification.>>  Voluntary agreement process.--
        The Administrative Supervisor has issued a certification that--
                    (A) the requirements set forth in section 104(i)(2) 
                and section 601(g)(1)(B) have been satisfied; or
                    (B) the Modification is consistent with a 
                restructuring support or similar agreement to be 
                implemented pursuant to the law of the covered territory 
                executed by the Issuer prior to the establishment of an 
                Oversight Board for the relevant territory.

    (h) Solicitation.--
            (1) Upon receipt of a certification from the Administrative 
        Supervisor under subsection (g), the Information Agent shall, if 
        practical and except as provided in paragraph (2), submit to the 
        holders of any Outstanding Bonds of the relevant Issuer, 
        including holders of the right to vote such Outstanding Bonds, 
        the information submitted by the relevant Issuer under 
        subsection (f)(1) in order to solicit the vote of such holders 
        to approve or reject the Qualifying Modification.
            (2) If the Information Agent is unable to identify the 
        address of holders of any Outstanding Bonds of the relevant 
        Issuer, the Information Agent may solicit the vote or consent of 
        such holders by--
                    (A) delivering the solicitation to the paying agent 
                for any such Issuer or Depository Trust Corporation if 
                it serves as the clearing system for any of the Issuer's 
                Outstanding Bonds; or
                    (B) <<NOTE: Consultation.>>  delivering or 
                publishing the solicitation by whatever additional means 
                the Information Agent, after consultation with the 
                Issuer, deems necessary and appropriate in order to make 
                a reasonable effort to inform holders of any Outstanding 
                Bonds of the Issuer which may include, notice by mail, 
                publication in electronic media, publication on a 
                website of the Issuer, or publication in newspapers of 
                national circulation in the United States and in a 
                newspaper of general circulation in the territory.

    (i) Who May Propose a Modification.--For each Issuer, a Modification 
may be proposed to the Administrative Supervisor by the Issuer or by one 
or more holders of the right to vote the Issuer's Outstanding Bonds. To 
the extent a Modification proposed by one or more holders of the right 
to vote Outstanding Bonds otherwise complies with the requirements of 
this title, the Administrative Supervisor may accept such Modification 
on behalf of the Issuer, in which case the Administrative Supervisor 
will

[[Page 130 STAT. 608]]

instruct the Issuer to provide the information required in subsection 
(f).
    (j) Voting.--For each Issuer, any Qualifying Modification may be 
made with the affirmative vote of the holders of the right to vote at 
least two-thirds of the Outstanding Principal amount of the Outstanding 
Bonds in each Pool that have voted to approve or reject the Qualifying 
Modification, provided that holders of the right to vote not less than a 
majority of the aggregate Outstanding Principal amount of all the 
Outstanding Bonds in each Pool have voted to approve the Qualifying 
Modification. The holder of the right to vote the Outstanding Bonds that 
are Insured Bonds shall be the monoline insurer insuring such Insured 
Bond to the extent such insurer is granted the right to vote Insured 
Bonds for purposes of directing remedies or consenting to proposed 
amendments or modifications as provided in the applicable documents 
pursuant to which such Insured Bond was issued and insured.
    (k) Calculation Agent.--For the purpose of calculating the principal 
amount of the Bonds of any series eligible to participate in such a vote 
or consent solicitation and tabulating such votes or consents, the 
Territory Government Issuer may appoint a Calculation Agent for each 
Pool reasonably acceptable to the Administrative Supervisor.
    (l) Information Agent.--For the purpose of administering a vote of 
holders of Bonds, including the holders of the right to vote such Bonds, 
or seeking the consent of holder of Bonds, including the holders of the 
right to vote such Bonds, to a written action under this section, the 
Territory Government Issuer may appoint an Information Agent for each 
Pool reasonably acceptable to the Administrative Supervisor.
    (m) Binding Effect.--
            (1) A Qualifying Modification will be conclusive and binding 
        on all holders of Bonds whether or not they have given such 
        consent, and on all future holders of those Bonds whether or not 
        notation of such Qualifying Modification is made upon the Bonds, 
        if--
                    (A) the holders of the right to vote the Outstanding 
                Bonds in every Pool of the Issuer pursuant to subsection 
                (j) have consented to or approved the Qualifying 
                Modification;
                    (B) <<NOTE: Certification.>>  the Administrative 
                Supervisor certifies that--
                          (i) the voting requirements of this section 
                      have been satisfied;
                          (ii) the Qualifying Modification complies with 
                      the requirements set forth in section 104(i)(1); 
                      and
                          (iii) except for such conditions that have 
                      been identified in the Qualifying Modification as 
                      being non-waivable, any conditions on the 
                      effectiveness of the Qualifying Modification have 
                      been satisfied or, in the Administrative 
                      Supervisor's sole discretion, satisfaction of such 
                      conditions has been waived;
                    (C) with respect to a Bond Claim that is secured by 
                a lien on property and with respect to which the holder 
                of such Bond Claim has rejected or not consented to the 
                Qualifying Modification, the holder of such Bond--
                          (i) retains the lien securing such Bond 
                      Claims; or

[[Page 130 STAT. 609]]

                          (ii) receives on account of such Bond Claim, 
                      through deferred cash payments, substitute 
                      collateral, or otherwise, at least the equivalent 
                      value of the lesser of the amount of the Bond 
                      Claim or of the collateral securing such Bond 
                      Claim; and
                    (D) the district court for the territory or, for any 
                territory that does not have a district court, the 
                United States District Court for the District of Hawaii, 
                has, after reviewing an application submitted to it by 
                the applicable Issuer for an order approving the 
                Qualifying Modification, entered an order that the 
                requirements of this section have been satisfied.
            (2) Upon the entry of an order under paragraph (1)(D), the 
        conclusive and binding Qualifying Modification shall be valid 
        and binding on any person or entity asserting claims or other 
        rights, including a beneficial interest (directly or indirectly, 
        as principal, agent, counterpart, subrogee, insurer or 
        otherwise) in respect of Bonds subject to the Qualifying 
        Modification, any trustee, any collateral agent, any indenture 
        trustee, any fiscal agent, and any bank that receives or holds 
        funds related to such Bonds. All property of an Issuer for which 
        an order has been entered under paragraph (1)(D) shall vest in 
        the Issuer free and clear of all claims in respect of any Bonds 
        of any other Issuer. Such Qualifying Modification will be full, 
        final, complete, binding, and conclusive as to the territorial 
        government Issuer, other territorial instrumentalities of the 
        territorial government Issuer, and any creditors of such 
        entities, and should not be subject to any collateral attack or 
        other challenge by any such entities in any court or other 
        forum. Other than as provided herein, the foregoing shall not 
        prejudice the rights and claims of any party that insured the 
        Bonds, including the right to assert claims under the Bonds as 
        modified following any payment under the insurance policy, and 
        no claim or right that may be asserted by any party in a 
        capacity other than holder of a Bond affected by the Qualifying 
        Modification shall be satisfied, released, discharged, or 
        enjoined by this provision.

    (n) Judicial Review.--
            (1) The district court for the territory or, for any 
        territory that does not have a district court, the United States 
        District Court for the District of Hawaii shall have original 
        and exclusive jurisdiction over civil actions arising under this 
        section.
            (2) Notwithstanding section 106(e), there shall be a cause 
        of action to challenge unlawful application of this section.
            (3) The district court shall nullify a Modification and any 
        effects on the rights of the holders of Bonds resulting from 
        such Modification if and only if the district court determines 
        that such Modification is manifestly inconsistent with this 
        section.
SEC. 602. <<NOTE: 48 USC 2232.>>  APPLICABLE LAW.

    In any judicial proceeding regarding this title, Federal, State, or 
territorial laws of the United States, as applicable, shall govern and 
be applied without regard or reference to any law of any international 
or foreign jurisdiction.

[[Page 130 STAT. 610]]

  TITLE VII--SENSE OF CONGRESS REGARDING PERMANENT, PRO-GROWTH FISCAL 
                                 REFORMS

SEC. 701. <<NOTE: 48 USC 2241.>>  SENSE OF CONGRESS REGARDING 
                        PERMANENT, PRO-GROWTH FISCAL REFORMS.

    It is the sense of the Congress that any durable solution for Puerto 
Rico's fiscal and economic crisis should include permanent, pro-growth 
fiscal reforms that feature, among other elements, a free flow of 
capital between possessions of the United States and the rest of the 
United States.

    Approved June 30, 2016.

LEGISLATIVE HISTORY--S. 2328 (H.R. 5278):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 114-602, Pt. 1 (Comm. on Natural Resources) 
accompanying H.R. 5278.
CONGRESSIONAL RECORD:
                                                        Vol. 161 (2015):
                                    Nov. 19, considered and passed 
                                        Senate.
                                                        Vol. 162 (2016):
                                    June 9, considered and passed House, 
                                        amended, in lieu of
                                    H.R. 5278.
                                    June 27, 29, Senate considered and 
                                        concurred in House
                                    amendment.
DAILY COMPILATION OF PRESIDENTIAL DOCUMENTS (2016):
            June 30, Presidential remarks.

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