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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4900 Introduced in House (IH)]

<DOC>

114th CONGRESS
  2d Session
                                H. R. 4900

  To establish an Oversight Board to assist the Government of Puerto 
Rico, including instrumentalities, in managing its public finances, and 
                          for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 12, 2016

  Mr. Duffy introduced the following bill; which was referred to the 
 Committee on Natural Resources, and in addition to the Committees on 
   the Judiciary and Education and the Workforce, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

 
  To establish an Oversight Board to assist the Government of Puerto 
Rico, including instrumentalities, in managing its public finances, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

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. Territory 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 the 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.
                    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.
Sec. 306. Jurisdiction.
Sec. 307. Venue.
Sec. 308. Jurisdiction; removal; appeals.
Sec. 309. Appellate review.
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.
                   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. Land conveyance authority, Vieques National Wildlife Refuge, 
                            Vieques Island.
Sec. 406. Automatic stay upon enactment.
Sec. 407. Purchases by territory governments.
Sec. 408. Intervention in litigation.
           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. 2. 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) Title III.--Title III shall apply with respect to--
            (1) cases commenced under title III on or after the date of 
        the enactment of this Act; and
            (2) 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. SEVERABILITY.

    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 or II, and 
titles I or II are not severable from title III.

SEC. 4. SUPREMACY.

    The provisions of this Act shall prevail over any general or 
specific provisions of territory law or regulation that is inconsistent 
with this Act.

SEC. 5. 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 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 Board.
            (2) Bond.--The term ``Bond'' means a bond, loan, letter of 
        credit, other borrowing title, obligation of insurance, or 
        other indebtedness, 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 indebtedness 
        in physical or dematerialized form, of which--
                    (A) the issuer, obligor, or guarantor is the 
                territorial government; and
                    (B) the date of issuance or incurrence precedes the 
                date of enactment of this Act.
            (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 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 a Board has been established under 
        section 101.
            (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 government of 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 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 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, 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.
            (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. PLACEMENT.

    The Law Revision Counsel is directed to place this Act in chapter 4 
of title 48, United States Code, as subchapter VIII.

SEC. 7. 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 protecting the health, safety, and 
environment of persons in such territory.

       TITLE I--ESTABLISHMENT AND ORGANIZATION OF OVERSIGHT BOARD

SEC. 101. TERRITORY FINANCIAL OVERSIGHT AND MANAGEMENT BOARD.

    (a) Purpose.--The purpose of the Oversight Board is to provide a 
method to achieve fiscal responsibility and access to the capital 
markets.
    (b) Establishment.--
            (1) In general.--Except as provided in paragraph (2), a 
        Financial Oversight and Management Board for a territory is 
        established in accordance with this section only if the 
        Legislature of the territory adopts a resolution signed by the 
        Governor requesting the establishment.
            (2) Puerto rico.--Notwithstanding paragraph (1), a 
        Financial Oversight and Management Board is hereby established 
        for Puerto Rico.
            (3) Constitutional basis.--The Congress enacts this 
        subsection 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.
                    (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, 
                must 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.
                    (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.
            (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.--The Oversight Board shall consist of 7 
        members appointed by the President who meet the qualifications 
        described in subsection (e), except that the Oversight Board 
        may take any action under this Act (or any amendments made by 
        this Act) at any time after the President has appointed 3 of 
        its members.
            (2) Appointed members.--The President shall appoint the 
        individual members of the Oversight Board, of which two 
        individuals should be selected from a list of individuals 
        submitted by the Speaker of the House of Representatives; two 
        should be selected from a list submitted by the Majority Leader 
        of the Senate; one should be selected from a list submitted by 
        the Minority Leader of the House of Representatives; and one 
        should be selected from a list submitted by the Minority Leader 
        of the Senate. Of the two individuals to be selected from a 
        list of individuals submitted by the Speaker of the House of 
        Representatives, one shall maintain a primary residence in the 
        territory or have a primary place of business in the territory.
            (3) Ex officio members.--The Governor, or the Governor's 
        designee, shall be an ex officio member of the Oversight Board 
        without voting rights.
            (4) 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 in this 
        title as the ``Chair'').
            (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.
    (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) is not an officer, elected official, or employee of the 
        territorial government or a candidate for elected office 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) In general.--As soon as practicable after the 
        appointment of its members, the Oversight Board shall adopt 
        bylaws, rules, and procedures governing its activities under 
        this Act, including procedures for hiring experts and 
        consultants and conflict of interest rules. 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 subsection.
            (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, or to cause a 
        legislative act not to be enforced under section 204.
            (3) Adoption of rules and regulations of territorial 
        government.--The Oversight Board may incorporate in its 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 appointed membership, the Oversight 
        Board may conduct its business in an executive session that 
        consists solely of the Oversight Board's appointed members 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. LOCATION OF OVERSIGHT BOARD.

    The Oversight Board shall have an office in the covered territory 
and additional offices as it sees fit. At any time, any department or 
agency of the United States may provide the Oversight Board use of 
Federal facilities and equipment, with partial or no reimbursement, and 
subject to such terms and conditions as the head of that department or 
agency may establish.

SEC. 103. EXECUTIVE DIRECTOR AND STAFF OF OVERSIGHT BOARD.

    (a) 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. Such personnel may include private citizens, employees of 
the Federal Government, or employees of the territorial government.
    (c) Inapplicability of Certain Employment and Procurement Laws.--
            (1) Civil service laws.--The Executive Director and staff 
        of the Oversight Board may be appointed without regard to the 
        provisions of title 5, United States Code, governing 
        appointments in the competitive service, and paid without 
        regard to the provisions of chapter 51 and subchapter III of 
        chapter 53 of that title relating to classification and General 
        Schedule pay rates.
            (2) Covered territory 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 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 (42 U.S.C. 4701 et seq.), 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.

SEC. 104. 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) 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. All gifts, bequests or devises and the 
identities of the donors shall be publicly disclosed by the Oversight 
Board within 30 days of receipt.
    (e) 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. The attendance of 
        witnesses and the production of such materials may be required 
        from any place within the United States at any designated place 
        of hearing within the United States.
            (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 district court for the district for the 
        covered territory or, for any territory that does not have a 
        district court, to the United States District Court for the 
        District of Hawaii, for an order requiring that person to 
        appear before the Oversight Board to give testimony, produce 
        evidence, or both, relating to the matter under investigation. 
        Any failure to obey the order of the court may be punished by 
        the court as civil contempt.
            (3) Service of subpoenas.--The subpoena of the Oversight 
        Board shall be served in the manner provided for subpoenas 
        issued by the district courts under the Federal Rules of Civil 
        Procedure.
    (f) Administrative Support Services.--Upon the request of the 
Oversight Board, the Administrator of General Services shall promptly 
provide to the Oversight Board, on a reimbursable basis, the 
administrative support services necessary for the Oversight Board to 
carry out its responsibilities under this Act.
    (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.
    (i) Voluntary Agreement Certification.--
            (1) In general.--If the Oversight Board determines in its 
        sole discretion that the covered territory or covered 
        territorial instrumentality has successfully reached a 
        voluntary agreement with holders of its debt to restructure 
        such debt in a manner that provides for a sustainable level of 
        debt for such covered territory or covered territorial 
        instrumentality and is in conformance with the certified Fiscal 
        Plan as applicable--
                    (A) the Oversight Board shall issue a certification 
                to the applicable covered territory or covered 
                territorial instrumentality that the voluntary 
                agreement provides for a sustainable level of debt and 
                is in conformance with the applicable certified Fiscal 
                Plan; and
                    (B) the effectiveness of any such voluntary 
                agreement must be conditioned on the Oversight Board 
                delivering the certification described in subparagraph 
                (A).
            (2) Preexisting voluntary agreements.--Any voluntary 
        agreements that the territorial government has consummated with 
        holders of its debts to restructure such debt for the 
        territorial government prior to the date of enactment of the 
        Act shall be deemed to be in conformance with the requirements 
        of this subsection.
    (j) Restructuring Filings.--
            (1) 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.
            (3) Condition for plans of adjustment.--The Oversight Board 
        can only certify a plan of adjustment only if 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.
            (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.

SEC. 105. EXEMPTION FROM LIABILITY FOR CLAIMS.

    The Oversight Board, its members, and its employees may not be 
liable for any obligation of or claim against the Oversight Board or 
its members or employees or the territorial government resulting from 
actions taken to carry out this Act.

SEC. 106. TREATMENT OF ACTIONS ARISING FROM ACT.

    (a) Jurisdiction.--Except as provided in section 104(e)(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 or any action otherwise arising out of this Act, 
in whole or in part, shall be brought in the 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 the 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. BUDGET AND FUNDING FOR OPERATION OF OVERSIGHT BOARD.

    (a) 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 may 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. If the Oversight Board elects to do so--
            (1) the Oversight Board shall submit to the Governor and 
        the Legislature the budget described in subsection (a); and
            (2) 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.

SEC. 108. AUTONOMY OF THE 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 with respect to the Oversight Board or its 
        activities.
    (b) Oversight Board Legal Representation.--In any action brought by 
or on behalf of the Oversight Board, and in any action brought by the 
Oversight Board, the Oversight Board shall be represented by such 
counsel as it may hire or retain so long as no conflict of interest 
exists.

SEC. 109. ETHICS.

    All members and staff of the Oversight Board shall be subject to--
            (1) the Federal conflict of interest requirements described 
        in section 2018 of title 18, United States Code; and
            (2) the financial disclosure requirements under title I of 
        the Ethics in Government Act of 1978 (5 U.S.C. app.).

             TITLE II--RESPONSIBILITIES OF OVERSIGHT BOARD

SEC. 201. APPROVAL OF FISCAL PLANS.

    (a) In General.--As soon as practicable after at least 4 members 
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, which revisions must be subject to subsequent 
approval and certification by the Oversight Board. 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, endeavor to provide a method to 
        achieve fiscal responsibility and access to the capital 
        markets, and--
                    (A) 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) include a debt sustainability analysis;
                    (J) provide for capital expenditures and 
                investments necessary to promote economic growth;
                    (K) to greatest extent feasible, adopt 
                recommendations submitted to the territorial government 
                by the Oversight Board under section 205(a); and
                    (L) include such additional information as the 
                Oversight Board deems necessary.
            (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 
Plan.--
            (1) Timing requirement.--The Governor may not submit to the 
        Legislature a Territory Budget under section 202 for a fiscal 
        year unless the Oversight Board has certified the 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) Review by the oversight board.--The Oversight Board 
        shall review the 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) 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 approves 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.

SEC. 202. APPROVAL OF BUDGETS.

    (a) Reasonable Schedule for Development of Budgets.--As soon as 
practicable after at least 4 members 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. 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) 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). 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) 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 
        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). The Oversight Board shall determine 
        whether the adopted Territory Budget is a compliant budget 
        and--
                    (A) 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) 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) 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 to 
        the Territory Budget made by the Oversight Board pursuant to 
        that subsection) 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) 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 Territory 
        Budget made by the Oversight Board pursuant to that subsection) 
        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) 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 
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. 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--
                    (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 of Variance.--
            (1) Variance.--If the territorial government fails to 
        provide additional information under subsection (b)(1)(A), or 
        fails to correct a variance 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 at variance 
        with the applicable certified Budget, and shall describe the 
        nature and amount of the variance.
            (2) Correction of variance.--If the Oversight Board 
        determines that the territorial government has initiated such 
        measures as the Oversight Board considers sufficient to correct 
        a variance 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 a variance 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
                    (ii) prohibit the covered territorial 
                instrumentality from entering into any contract in 
                excess of $100,000, or engaging in any financial or 
                other transactions, unless the contract or transaction 
                was previously approved by the Oversight Board.
    (e) Termination of Budget Reductions.--The Oversight Board shall 
cancel the reductions 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. REVIEW OF ACTIVITIES TO ENSURE COMPLIANCE WITH FISCAL PLAN.

    (a) Submission of Legislative Acts to Oversight Board.--
            (1) 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 
                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 subparagraph (C) of 
                paragraph (3) 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) 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.
            (2) Authority to review certain contracts.--The Oversight 
        Board may establish policies to require prior Oversight Board 
        approval of certain contracts, including leases, proposed to be 
        executed by the territorial government, to ensure such proposed 
        contracts 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 in this process, to make appropriate use of the Oversight 
        Board's time and resources, and to avoid creating any 
        additional bureaucratic obstacles to efficient contracting.
            (4) Authority to review certain rules and regulations.--The 
        provisions of this paragraph shall apply with respect to a rule 
        or regulation 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, or regulation 
        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, 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, 
        or regulation.
    (c) Restrictions on Reprogramming of Amounts in Budget.--
            (1) Submissions of requests to oversight board.--If the 
        Governor submits a request to the Legislature for the 
        reprogramming of any amounts provided in an approved 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 may 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 significantly inconsistent with the Fiscal Plan and 
        Budget.
    (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 with respect 
        to Federal programs;
            (2) implement a federally authorized or federally delegated 
        program; or
            (3) implement territorial laws, which are consistent with a 
        certified fiscal plan, that execute Federal requirements and 
        standards.

SEC. 205. RECOMMENDATIONS ON FINANCIAL STABILITY AND MANAGEMENT 
              RESPONSIBILITY.

    (a) In General.--The Oversight Board may at any time submit 
recommendations to the Governor and 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 former 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 (including 
        privatization and commercialization);
            (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; and
            (9) the improvement of personnel training and proficiency, 
        the adjustment of staffing levels, and the improvement of 
        training and performance of management and supervisory 
        personnel.
    (b) Response to Recommendations by the Territorial Government.--
            (1) 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. OVERSIGHT BOARD DUTIES RELATED TO RESTRUCTURING.

    (a) Requirements for Restructuring Certification.--The Oversight 
Board, prior to issuing a restructuring certification regarding an 
entity, shall determine, in its sole discretion, that--
            (1) the territorial government completed the process set 
        forth in title VI;
            (2) the entity has adopted procedures necessary to deliver 
        timely audited financial statements and draft financial 
        statements and other information sufficient for any interested 
        person to perform due diligence on the entity's financial 
        condition, which shall exist in the public domain;
            (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 certified by the Oversight Board, or a 
        covered territorial instrumentality that has adopted an 
        instrumentality Fiscal Plan certified by the Oversight Board;
            (4) only if the entity does not receive, as determined in 
        the Oversight Board's sole discretion, 10 percent or more of 
        its revenues from the taxing power of the government of the 
        covered territory, the entity is insolvent; and
            (5) such appropriate consideration is given to relative 
        priority of claims as established by law so that no one group 
        or class of creditors gains an advantage over any other class 
        in which such advantage did not exist prior to the Oversight 
        Board's determination.
    (b) Issuance of Restructuring Certification.--The issuance of a 
restructuring certification under this section, which shall require no 
less than a vote of 5 members of the Oversight Board in the 
affirmative, shall satisfy the requirement set forth in section 302(2) 
of this Act.

SEC. 207. 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. 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) 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 the certified Fiscal Plan;
            (4) the precise manner in which funds allocated to the 
        Oversight Board under section 107 and, as applicable, section 
        104(d) 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
            (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.

SEC. 209. 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. 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 the Oversight Board. 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 the Oversight Board.
    (b) Subject to Appropriations.--Any claim to which the United 
States is determined to be liable shall be subject to appropriations.

SEC. 211. 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) 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;
            (2) sources of funding to cover such payments;
            (3) a review of the existing benefits and their 
        sustainability; and
            (4) 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.

                    TITLE III--ADJUSTMENTS OF DEBTS

SEC. 301. APPLICABILITY OF OTHER LAWS; DEFINITIONS.

    (a) 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.
            (2) Debtor.--The term ``debtor'' means the territory or 
        covered territorial instrumentality concerning which a case 
        under this title has been commenced.
            (3) Property of the estate.--The term ``property of the 
        estate'', when used in a section of title 11 or 28, United 
        States Code, made applicable in a case under this title by 
        subsection (a), means property of the debtor.
            (4) State.--The term ``State'' when used in a section of 
        title 11, United States Code, made applicable in a case under 
        this title by section 301(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.
            (5) 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.
    (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'', ``the Code'', or words of similar import in a section of title 
28, United States Code, made applicable in a case under this chapter by 
sections 306 or 309 or in the Federal Rules of Bankruptcy Procedure 
made applicable in a case under this title by section 310 shall be 
deemed to be a reference to this title.
    (e) 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 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. 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) for such entity; and
            (3) the entity desires to effect a plan to adjust its 
        debts.

SEC. 303. 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 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--
            (1) a territory law prescribing a method of composition or 
        moratorium of indebtedness of the territory or any territorial 
        instrumentality thereof may not bind any creditor that does not 
        consent to the composition or moratorium; and
            (2) a judgment entered under a law described in paragraph 
        (1) may not bind a creditor that does not consent to the 
        composition.

SEC. 304. 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 302, 
provided that an otherwise eligible entity may not commence a case 
under this chapter after the Oversight Board applicable to such 
eligible entity has been terminated in accordance with section 209.
    (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 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, or 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.

SEC. 305. LIMITATION ON JURISDICTION AND POWERS OF COURT.

    (a) In General.--Subject to the limitations set forth in titles I 
and II of this Act, notwithstanding any power of the court, unless the 
debtor 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. JURISDICTION.

    (a) The district courts shall have original and exclusive 
jurisdiction of a case under this title.
    (b) Section 157 of title 28, United States Code, shall apply to a 
case under this title.

SEC. 307. 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.--If the oversight Board determines that the 
venue under paragraph (a) will not adequately provide for proper case 
management, 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.

SEC. 308. JURISDICTION; REMOVAL; APPEALS.

    (a) Federal Subject Matter Jurisdiction.--Except as provided in 
section 306 the district courts shall have--
            (1) except as provided in paragraph (2), the district court 
        shall have original and exclusive jurisdiction of all cases 
        under this title;
            (2) except as provided in paragraph (3), and 
        notwithstanding any Act of Congress that confers exclusive 
        jurisdiction on a court or courts other than the district 
        courts, the district courts shall have original but not 
        exclusive jurisdiction of all civil proceedings arising under 
        this title, or arising in or related to cases under this title; 
        and
            (3) 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 such case.
    (b) Personal Jurisdiction.--The district court in which a case 
under this title is pending shall have personal jurisdiction over any 
person or entity to the fullest extent permitted under the Constitution 
of the United States.

SEC. 309. APPELLATE REVIEW.

    Sections 158(a) and (d) of title 28, United States Code, shall 
apply to a case under this title.

SEC. 310. 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. 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. FILING OF PLAN OF ADJUSTMENT.

    (a) Exclusivity.--Only the debtor, upon the issuance of a 
certification by the Oversight Board pursuant to section 104(j), may 
file a plan of adjustment of the debts of the debtor.
    (b) Deadline for Filing Plan.--If the debtor does not file a plan 
of adjustment with the petition, the debtor shall file a plan of 
adjustment at the time set by the court.

SEC. 313. MODIFICATION OF PLAN.

    The debtor, upon the issuance of a certification by the Oversight 
Board pursuant to section 104(j), 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 debtor 
files a modification, the plan as modified becomes the plan.

SEC. 314. 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;
            (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 in the best interests of creditors and is 
        feasible;
            (7) the plan is consistent with the applicable Fiscal Plan 
        certified by the Oversight Board under title II; and
            (8) all amounts to be paid by the debtor or any person for 
        services or expenses in the case or incident to the plan have 
        been fully disclosed and are reasonable.

SEC. 315. ROLE AND CAPACITY OF OVERSIGHT BOARD.

    (a) Actions of Oversight Board.--Subject to sections 303 and 307, 
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;
            (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.

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. RULES OF CONSTRUCTION.

    Nothing in this Act is intended, or may be construed--
            (1) to limit the authority of Congress to exercise ultimate 
        legislative authority over the territories;
            (2) to authorize the application of section 103(e) 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).

SEC. 402. 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--
            (1) in paragraph (1)--
                    (A) by striking ``subsection (a)(1), any employer'' 
                and inserting ``subsection (a)(1)--
            ``(A) any employer'';
                    (B) by striking the period at the end and inserting 
                ``; and''; and
                    (C) by adding at the end the following:
                    ``(B) 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 five 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 $4.25 an 
                hour.''; and
            (2) in paragraph (4), by striking ``years'' and inserting 
        ``years, except in the case of the wage applicable in Puerto 
        Rico, 25 years''.

SEC. 404. APPLICATION OF REGULATION TO PUERTO RICO.

    The regulations issued 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 
the Federal Register on July 6, 2015, shall have no force or effect in 
the Commonwealth of Puerto Rico.

SEC. 405. LAND CONVEYANCE AUTHORITY, VIEQUES NATIONAL WILDLIFE REFUGE, 
              VIEQUES ISLAND.

    Section 1508(c) of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398; 114 Stat. 1654A-356) is amended--
            (1) by striking ``The Secretary'' and inserting the 
        following:
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary''; and
            (2) by adding at the end the following new paragraph:
            ``(2) Conveyance authority.--
                    ``(A) Conveyance authorized.--Except as provided in 
                subparagraph (B), the Secretary of the Interior is 
                authorized to convey, without consideration, all or any 
                portion of the Conservation Zones transferred to the 
                Secretary under subsection (a) to the Commonwealth of 
                Puerto Rico for the purpose specified in subparagraph 
                (B). The conveyance shall be subject to interests 
                retained pursuant to section 1506 of this Act.
                    ``(B) Certain lands excluded.--The conveyance 
                authority provided by this paragraph does not include 
                the land encompassing Solid Waste Management Unit 4, as 
                depicted on the map of former Naval Ammunition Support 
                Detachment, Vieques, maintained by the Naval Facilities 
                Engineering Command.
                    ``(C) Indemnification.--The indemnification 
                requirements and conditions specified in section 
                1502(e) of this Act shall apply with respect to the 
                release or threatened release (after the conveyance is 
                made under this paragraph) of any hazardous substance 
                or pollutant or contaminant as a result of Department 
                of Defense activities on the conveyed property.
                    ``(D) Relation to cooperative agreement.--The 
                cooperative agreement entered into under subsection 
                (d)(1) shall no longer apply to any portion of the 
                Conservation Zones conveyed by the Secretary of the 
                Interior under this paragraph.
                    ``(E) Relation to other laws.--Nothing in this 
                paragraph shall be construed to affect the continued 
                applicability of section 120(h) of the Comprehensive 
                Environmental Response, Compensation, and Liability Act 
                of 1980 (42 U.S.C. 9620(h)) and the Endangered Species 
                Act of 1973 (16 U.S.C. 1531 et seq.) to any portion of 
                the Conservation Zones conveyed by the Secretary of the 
                Interior under this paragraph.''.

SEC. 406. 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 indebtedness, 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 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 the Commonwealth 
of 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;
            (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 
the Commonwealth of Puerto Rico in accordance with section 101 does not 
operate as a stay 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.
    (d) Continuation of Stay.--Except as provided in subsections (e), 
(f), and (g) the stay under subsection (b) continues until the earlier 
of--
            (1) February 15, 2017; 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.--
            (1) The United States District Court for the District of 
        Puerto Rico shall have original and exclusive jurisdiction of 
        any civil actions arising under this section.
            (2) On motion of 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) Termination of Stay; Hearing.--Thirty days after a request 
under subsection (e) 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). A hearing under 
this subsection may be a preliminary hearing, or may be consolidated 
with the final hearing under subsection (e). The court shall order such 
stay continued in effect pending the conclusion of the final hearing 
under subsection (e) 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 30-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) 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) No Force or Effect of Stay in Violation.--No order, judgment, 
or decree entered in violation of this section shall have any force or 
effect.
    (i) 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 directors and 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 
        remedy under a contract or applicable law--
                    (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) The term ``remedy'' as used in paragraph (1) shall be 
        interpreted broadly, and shall include any right existing in 
        law or contract, and any right to--
                    (A) setoff;
                    (B) apply or appropriate funds;
                    (C) seek the appointment of a custodian;
                    (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 
                effectiveness of the stay under this section;
                    (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 subsection (i)(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 advises to the contrary in writing, 
        continue to perform all obligations under, and comply with the 
        terms of, such contract so long as a stay under this section is 
        in effect, 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.
    (l) Findings.--Congress finds the following:
            (1) A combination of severe economic decline, 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 on 
        litigation 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.
    (m) Purposes.--The purposes of this Act 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;
            (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.

SEC. 407. PURCHASES BY TERRITORY GOVERNMENTS.

    The text of section 1469e of title 48, United States Code, is 
deleted in its entirety and replaced with ``The Governments 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. 408. 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 V--PUERTO RICO INFRASTRUCTURE REVITALIZATION

SEC. 501. 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 
        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 the 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 and 
        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, and adopted pursuant to 
        this title.
            (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 Act 75-1975 (23 
        L.P.R.A. 62 et seq.).
            (12) 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 the Commonwealth 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.
            (13) 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. 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) Prior to the appointment of the Revitalization 
                Coordinator, the Oversight Board shall submit to the 
                Governor no less than three nominees for appointment 
                within 60 days of the appointment of at least 4 members 
                to the Oversight Board.
                    (B) In consultation with the Oversight Board, not 
                later than 10 days after receiving the nominations 
                under subparagraph (A), the Governor shall select one 
                of the nominees as the Revitalization Coordinator. Such 
                nomination shall be effective immediately.
                    (C) If the Governor fails to select a 
                Revitalization Coordinator, the Oversight Board shall, 
                by majority vote, select a Revitalization Coordinator 
                from the list of nominees provided under paragraph (A).
            (2) 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 and development of 
                infrastructure projects, provided that stronger 
                consideration shall be given to candidates who have 
                experience with Energy Projects;
                    (B) does not currently provide, or in the preceding 
                3 calendar years provided, goods or services to the 
                government of Puerto Rico (and, as applicable, is not 
                the spouse, parent, child, or sibling of an individual 
                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 an individual 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's.
    (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, the position of the Revitalization Coordinator 
        shall be terminated once all approved Critical Projects have 
        been completed.

SEC. 503. 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;
                    (C) environmental and economic benefits provided by 
                the project, including the number of jobs to be 
                created;
                    (D) the status of the project if it is existing or 
                ongoing; and
                    (E) in addition to the requirements found in 
                subparagraphs (A) through (D), the Revitalization 
                Coordinator may request an Energy Project proponent to 
                address 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;
                            (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) lower energy costs for rate payers and 
                        increase the availability of affordable energy; 
                        and
                            (vii) achieve in whole or in part the 
                        recommendations of the study in section 505(d) 
                        of this title.
            (2) 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) Certification of expedited permitting process.--
                    (A) 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--
                            (i) consult with the Governor to develop 
                        within 20 days an Expedited Permitting Process 
                        for the Agency; and
                            (ii) require such Puerto Rico Agency to 
                        implement the Expedited Permitting Process 
                        developed under clause (i) for Critical 
                        Projects.
    (b) Critical Project Report.--
            (1) 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 identification of relevant Puerto Rico Agencies under 
        subsection (a)(2), which shall include:
                    (A) An assessment of how well the project meets the 
                criteria in subsection (a)(1).
                    (B) A recommendation by the Governor on whether the 
                project should be considered a Critical Project. If the 
                Governor fails to provide a recommendation, the failure 
                shall constitute a concurrence with the Revitalization 
                Coordinator's recommendation in subparagraph (D).
                    (C) 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 no such recommendation is provided, such failure 
                shall constitute a concurrence with the Revitalization 
                Coordinator's recommendation in subparagraph (D).
                    (D) A recommendation by the Revitalization 
                Coordinator on whether the project should be considered 
                a Critical Project.
            (2) Submission to oversight board.--Not later than 5 days 
        after finalizing a Critical Project Report, the Revitalization 
        Coordinator shall submit it to the Oversight Board.
    (c) Action by the Oversight Board.--Not later than 30 days after 
receiving the Critical Project Report, the Oversight Board, 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;
            (2) disapproves the project, the Oversight Board shall 
        submit to the Revitalization Coordinator in writing the reasons 
        for disapproval; and
            (3) fails to act and the Revitalization Coordinator had 
        recommended the project be deemed a Critical Project, then the 
        project shall be deemed a Critical Project.

SEC. 504. MISCELLANEOUS PROVISIONS.

    (a) Creation of Interagency Environmental Subcommittee.--
            (1) 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)(2).
            (2) 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) Regulations, Orders, and Contracts.--The Oversight Board shall 
approve or disapprove of any action taken by the Governor pursuant to 
or mirroring section 11 of Act 76 (3 L.P.R.A. 1941) pursuant to section 
204(b).
    (c) Length of Expedited Permitting Process.--With respect to a 
Puerto Rico Agency's activities related to only 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. Critical Projects shall be prioritized to the maximum extent 
possible in each Puerto Rico Agency.
    (d) Expedited Permitting Process Compliance.--
            (1) Written notice.--A Critical Project sponsor may in 
        writing notify the Oversight Board of a Puerto Rico Agency's, 
        or the Revitalization Coordinator's failure 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(k).
    (e) Review of Legislature Acts.--
            (1) Submission of acts to oversight board.--The Legislature 
        shall notify and submit to the Revitalization Coordinator and 
        Oversight Board any Act of the Legislature that may affect the 
        Expedited Permitting Process pursuant to section 204(a).
            (2) Finding of oversight board.--Upon receipt of an act 
        from the Legislature under paragraph (1), the Oversight Board 
        shall promptly review whether the proposed act would 
        significantly impact the Expedited Permitting Process, and upon 
        such a finding, the act shall be deemed to be significantly 
        inconsistent with the Fiscal Plan and Budget as identified by 
        section 204(a).
    (f) 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 any 
certificate, right-of-way, permit, lease, or other authorization, 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.
    (g) 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. FEDERAL AGENCY REQUIREMENTS.

    (a) 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 on 
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 180 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. 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.
    (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. 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. 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 (j).
            (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 (k).
            (7) 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.
            (8) 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.
            (9) Outstanding.--The term ``Outstanding,'' in the context 
        of the principal amount of Bonds, shall be determined in 
        accordance with subsection (b).
            (10) 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.
            (11) Pool.--The term ``Pool'' means a pool established in 
        accordance with subsection (d).
            (12) Qualifying modification.--The term ``Qualifying 
        Modification'' means a Modification proposed in accordance with 
        subsection (g).
            (13) 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.
            (14) Territory government issuer.--The term ``Territory 
        Government Issuer'' means the government of the Commonwealth of 
        Puerto Rico.
    (b) 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 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) 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 Secured Bonds 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.
                    (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 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.
                            (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.
                    (E) The Administrative Supervisor shall not place 
                into separate Pools Bonds of the same Issuer that have 
                identical rights in security or priority.
    (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 a Qualifying 
Modification to solicit the consent or the vote of any holder for a 
Qualifying Modification is submitted, the Issuer shall--
            (1) provide to the Calculation Agent, the Information 
        Agent, and the Administrative Supervisor, the following 
        information--
                    (A) 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;
                    (B) 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; and
                    (C) the applicable Fiscal Plan certified in 
                accordance with section 201; and
            (2) not propose the Modification to the holders of Bonds in 
        the Pool for which the Modification is being proposed until it 
        has received a certification from the Administrative Supervisor 
        that the Pool has been established in accordance with this 
        section and that the proposed Modification is a Qualifying 
        Modification.
    (g) Qualifying Modification.--A Modification will not be considered 
to be Qualifying Modification unless--
            (1) the Issuer proposing the Modification has consulted 
        with holders of Bonds in the Pool for which the Modification is 
        being proposed prior to soliciting a vote on such Modification;
            (2) 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 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);
            (3) if the Modification relates to Bonds in a Secured Pool, 
        the holders of such Bonds retain the liens securing such Bonds 
        and the Modification does not reduce the Outstanding Principal 
        amount of such Bonds; and
            (4) the Modification is certified by the Administrative 
        Supervisor as--
                    (A) the plan is in the best interests of creditors 
                and is feasible; and
                    (B) being consistent with the applicable Fiscal 
                Plan that has been certified under section 201; or
                    (C) if an applicable Fiscal Plan has not yet been 
                certified by the Administrative Supervisor, being an 
                appropriate Modification, in the Administrative 
                Supervisor's sole discretion.
    (h) Solicitation.--
            (1) Upon receipt of a certification from the Administrative 
        Supervisor under subsection (f)(2) that a proposed Modification 
        is a Qualifying Modification, the Information Agent shall, if 
        practical and except as provided in paragraph (2), submit to 
        the holders of any Outstanding Bonds affected by such 
        Qualifying Modification, 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 or consent of such holders.
            (2) If the Information Agent is unable to identify the 
        address of holders of any Outstanding Bonds affected by a 
        Qualifying Modification, the Information Agent may solicit the 
        vote or consent of such holders by--
                    (A) delivering the solicitation to the paying agent 
                for any affected Outstanding Bonds or Depository Trust 
                Corporation if it serves as the clearing system for any 
                affected Outstanding Bonds; or
                    (B) 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 affected Outstanding Bonds of the 
                Qualifying Modification 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 Commonwealth of 
                Puerto Rico.
    (i) Voting.--For each Pool, any Qualifying Modification may be 
proposed only by the Issuer and made, and future compliance therewith 
may be waived, with the written consent of the Issuer and the 
affirmative vote or consent of holders of the right to vote the 
Outstanding Bonds of at least two-thirds of the aggregate Outstanding 
Principal amount of the Outstanding Bonds of all Bonds in the Pool.
    (j) 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.
    (k) 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.
    (l) Binding Effect.--
            (1) For each Pool, a Qualifying Modification will be 
        conclusive and binding on all holders of the relevant series of 
        Bonds or all holders of all series 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 such Pool pursuant to subsection 
                (i) have consented to or approved the Qualifying 
                Modification;
                    (B) each holder who has not consented to or 
                approved the Qualifying Modification will receive or 
                retain under the Qualifying Modification on account of 
                their claims, property of a value, as of the effective 
                date of the Qualifying Modification, that is not less 
                than the amount that such holders would so receive or 
                retain if there were no Qualifying Modification;
                    (C) the Administrative Supervisor certifies that--
                            (i) the voting requirements of this section 
                        have been satisfied;
                            (ii) the Qualifying Modification is--
                                    (I) consistent with the applicable 
                                Fiscal Plan that has been certified 
                                under section 203; or
                                    (II) if an applicable Fiscal Plan 
                                has not yet been certified by the 
                                Administrative Supervisor, an 
                                appropriate Qualifying Modification, in 
                                the Administrative Supervisor's sole 
                                discretion; and
                            (iii) 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 by the 
                        Administrative Supervisor; and
                    (D) the United States District Court for the 
                District of Puerto Rico 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)(C), the 
        conclusive and binding Qualifying Modification shall satisfy, 
        release, and discharge all Bond Claims affected by the 
        Qualifying Modification, and shall be 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. 
        The property that is the subject of the Qualifying Modification 
        shall vest in the Issuer free and clear of all claims in 
        respect of any Bonds of any Issuer.
    (m) Judicial Review.--
            (1) The United States District Court for the District of 
        Puerto Rico 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.
    (n) Completion Required.--Prior to any certification pursuant to 
section 206 or the filing of any petition under title III, an offer for 
a Qualified Modification shall be made to each Pool established under 
subsection (d).
    (o) Savings Clause.--Nothing in this title shall effect the powers 
of the Oversight Board in titles I, II, and III.
                                 <all>
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