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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5278 Engrossed in House (EH)]

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114th CONGRESS
  2d Session
                                H. R. 5278

_______________________________________________________________________

                                 AN ACT

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

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

Sec. 301. Applicability of other laws; definitions.
Sec. 302. Who may be a debtor.
Sec. 303. Reservation of territorial power to control territory and 
                            territorial instrumentalities.
Sec. 304. Petition and proceedings relating to petition.
Sec. 305. Limitation on jurisdiction and powers of court.
Sec. 306. Jurisdiction.
Sec. 307. Venue.
Sec. 308. Selection of presiding judge.
Sec. 309. Abstention.
Sec. 310. Applicable rules of procedure.
Sec. 311. Leases.
Sec. 312. Filing of plan of adjustment.
Sec. 313. Modification of plan.
Sec. 314. Confirmation.
Sec. 315. Role and capacity of Oversight Board.
Sec. 316. Compensation of professionals.
Sec. 317. Interim compensation.
                   TITLE IV--MISCELLANEOUS PROVISIONS

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

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

Sec. 601. Creditor Collective action.
Sec. 602. Applicable law.
  TITLE VII--SENSE OF CONGRESS REGARDING PERMANENT, PRO-GROWTH FISCAL 
                                REFORMS

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

SEC. 2. 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 and Title VI.--
            (1) Title III shall apply with respect to cases commenced 
        under title III on or after the date of the enactment of this 
        Act.
            (2) Titles III and VI shall apply with respect to debts, 
        claims, and liens (as such terms are defined in section 101 of 
        title 11, United States Code) created before, on, or after such 
        date.

SEC. 3. SEVERABILITY.

    (a) In General.--Except as provided in subsection (b), if any 
provision of this Act or the application thereof to any person or 
circumstance is held invalid, the remainder of this Act, or the 
application of that provision to persons or circumstances other than 
those as to which it is held invalid, is not affected thereby, provided 
that title III is not severable from titles I and II, and titles I and 
II are not severable from title III.
    (b) Uniformity.--If a court holds invalid any provision of this Act 
or the application thereof on the ground that the provision fails to 
treat similarly situated territories uniformly, then the court shall, 
in granting a remedy, order that the provision of this Act or the 
application thereof be extended to any other similarly situated 
territory, provided that the legislature of that territory adopts a 
resolution signed by the territory's governor requesting the 
establishment and organization of a Financial Oversight and Management 
Board pursuant to section 101.

SEC. 4. SUPREMACY.

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

SEC. 5. DEFINITIONS.

    In this Act--
            (1) Agreed accounting standards.--The term ``agreed 
        accounting standards'' means modified accrual accounting 
        standards or, for any period during which the Oversight Board 
        determines in its sole discretion that a territorial government 
        is not reasonably capable of comprehensive reporting that 
        complies with modified accrual accounting standards, such other 
        accounting standards as proposed by the Oversight Board.
            (2) Bond.--The term ``Bond'' means a bond, loan, letter of 
        credit, other borrowing title, obligation of insurance, or 
        other financial indebtedness for borrowed money, including 
        rights, entitlements, or obligations whether such rights, 
        entitlements, or obligations arise from contract, statute, or 
        any other source of law, in any case, related to such a bond, 
        loan, letter of credit, other borrowing title, obligation of 
        insurance, or other financial indebtedness in physical or 
        dematerialized form of which the issuer, obligor, or guarantor 
        is the territorial government.
            (3) Bond claim.--The term ``Bond Claim'' means, as it 
        relates to a Bond--
                    (A) right to payment, whether or not such right is 
                reduced to judgment, liquidated, unliquidated, fixed, 
                contingent, matured, unmatured, disputed, undisputed, 
                legal, equitable, secured, or unsecured; or
                    (B) right to an equitable remedy for breach of 
                performance if such breach gives rise to a right to 
                payment, whether or not such right to an equitable 
                remedy is reduced to judgment, fixed, contingent, 
                matured, unmatured, disputed, undisputed, secured, or 
                unsecured.
            (4) Budget.--The term ``Budget'' means the Territory Budget 
        or an Instrumentality Budget, as applicable.
            (5) Puerto rico.--The term ``Puerto Rico'' means the 
        Commonwealth of Puerto Rico.
            (6) Compliant budget.--The term ``compliant budget'' means 
        a budget that is prepared in accordance with--
                    (A) agreed accounting standards; and
                    (B) the applicable Fiscal Plan.
            (7) Covered territorial instrumentality.--The term 
        ``covered territorial instrumentality'' means a territorial 
        instrumentality designated by the Oversight Board pursuant to 
        section 101 to be subject to the requirements of this Act.
            (8) Covered territory.--The term ``covered territory'' 
        means a territory for which an Oversight Board has been 
        established under section 101.
            (9) Executive director.--The term ``Executive Director'' 
        means an Executive Director appointed under section 103(a).
            (10) Fiscal plan.--The term ``Fiscal Plan'' means a 
        Territory Fiscal Plan or an Instrumentality Fiscal Plan, as 
        applicable.
            (11) Government of puerto rico.--The term ``Government of 
        Puerto Rico'' means the Commonwealth of Puerto Rico, including 
        all its territorial instrumentalities.
            (12) Governor.--The term ``Governor'' means the chief 
        executive of a covered territory.
            (13) Instrumentality budget.--The term ``Instrumentality 
        Budget'' means a budget for a covered territorial 
        instrumentality, designated by the Oversight Board in 
        accordance with section 101, submitted, approved, and certified 
        in accordance with section 202.
            (14) Instrumentality fiscal plan.--The term 
        ``Instrumentality Fiscal Plan'' means a fiscal plan for a 
        covered territorial instrumentality, designated by the 
        Oversight Board in accordance with section 101, submitted, 
        approved, and certified in accordance with section 201.
            (15) Legislature.--The term ``Legislature'' means the 
        legislative body responsible for enacting the laws of a covered 
        territory.
            (16) Modified accrual accounting standards.--The term 
        ``modified accrual accounting standards'' means recognizing 
        revenues as they become available and measurable and 
        recognizing expenditures when liabilities are incurred, in each 
        case as defined by the Governmental Accounting Standards Board, 
        in accordance with generally accepted accounting principles.
            (17) Oversight board.--The term ``Oversight Board'' means a 
        Financial Oversight and Management Board established in 
        accordance with section 101.
            (18) Territorial government.--The term ``territorial 
        government'' means the government of a covered territory, 
        including all covered territorial instrumentalities.
            (19) Territorial instrumentality.--
                    (A) In general.--The term ``territorial 
                instrumentality'' means any political subdivision, 
                public agency, instrumentality--including any 
                instrumentality that is also a bank--or public 
                corporation of a territory, and this term should be 
                broadly construed to effectuate the purposes of this 
                Act.
                    (B) Exclusion.--The term ``territorial 
                instrumentality'' does not include an Oversight Board.
            (20) Territory.--The term ``territory'' means--
                    (A) Puerto Rico;
                    (B) Guam;
                    (C) American Samoa;
                    (D) the Commonwealth of the Northern Mariana 
                Islands; or
                    (E) the United States Virgin Islands.
            (21) Territory budget.--The term ``Territory Budget'' means 
        a budget for a territorial government submitted, approved, and 
        certified in accordance with section 202.
            (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 as chapter 
20 of title 48, United States Code.

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 or territorial laws and requirements 
implementing a federally authorized or federally delegated program 
protecting the health, safety, and environment of persons in such 
territory.

       TITLE I--ESTABLISHMENT AND ORGANIZATION OF OVERSIGHT BOARD

SEC. 101. FINANCIAL OVERSIGHT AND MANAGEMENT BOARD.

    (a) Purpose.--The purpose of the Oversight Board is to provide a 
method for a covered territory to achieve fiscal responsibility and 
access to the capital markets.
    (b) Establishment.--
            (1) Puerto rico.--A Financial Oversight and Management 
        Board is hereby established for Puerto Rico.
            (2) Constitutional basis.--The Congress enacts this Act 
        pursuant to article IV, section 3 of the Constitution of the 
        United States, which provides Congress the power to dispose of 
        and make all needful rules and regulations for territories.
    (c) Treatment.--An Oversight Board established under this section--
            (1) shall be created as an entity within the territorial 
        government for which it is established in accordance with this 
        title; and
            (2) shall not be considered to be a department, agency, 
        establishment, or instrumentality of the Federal Government.
    (d) Oversight of Territorial Instrumentalities.--
            (1) Designation.--
                    (A) In general.--An Oversight Board, in its sole 
                discretion at such time as the Oversight Board 
                determines to be appropriate, may designate any 
                territorial instrumentality as a covered territorial 
                instrumentality that is subject to the requirements of 
                this Act.
                    (B) Budgets and reports.--The Oversight Board may 
                require, in its sole discretion, the Governor to submit 
                to the Oversight Board such budgets and monthly or 
                quarterly reports regarding a covered territorial 
                instrumentality as the Oversight Board determines to be 
                necessary and may designate any covered territorial 
                instrumentality to be included in the Territory Budget; 
                except that the Oversight Board may not designate a 
                covered territorial instrumentality to be included in 
                the Territory Budget if applicable territory law does 
                not require legislative approval of such covered 
                territorial instrumentality's budget.
                    (C) Separate instrumentality budgets and reports.--
                The Oversight Board in its sole discretion may or, if 
                it requires a budget from a covered territorial 
                instrumentality whose budget does not require 
                legislative approval under applicable territory law, 
                shall designate a covered territorial instrumentality 
                to be the subject of an Instrumentality Budget separate 
                from the applicable Territory Budget and require that 
                the Governor develop such an Instrumentality Budget.
                    (D) Inclusion in territory fiscal plan.--The 
                Oversight Board may require, in its sole discretion, 
                the Governor to include a covered territorial 
                instrumentality in the applicable Territory Fiscal 
                Plan. Any covered territorial instrumentality 
                submitting a separate Instrumentality Fiscal Plan must 
                also submit a separate Instrumentality Budget.
                    (E) Separate instrumentality fiscal plans.--The 
                Oversight Board may designate, in its sole discretion, 
                a covered territorial instrumentality to be the subject 
                of an Instrumentality Fiscal Plan separate from the 
                applicable Territory Fiscal Plan and require that the 
                Governor develop such an Instrumentality Fiscal Plan. 
                Any covered territorial instrumentality submitting a 
                separate Instrumentality Fiscal Plan shall also submit 
                a separate Instrumentality Budget.
            (2) Exclusion.--
                    (A) In general.--An Oversight Board, in its sole 
                discretion, at such time as the Oversight Board 
                determines to be appropriate, may exclude any 
                territorial instrumentality from the requirements of 
                this Act.
                    (B) Treatment.--A territorial instrumentality 
                excluded pursuant to this paragraph shall not be 
                considered to be a covered territorial instrumentality.
    (e) Membership.--
            (1) In general.--
                    (A) The Oversight Board shall consist of seven 
                members appointed by the President who meet the 
                qualifications described in subsection (f) and section 
                109(a).
                    (B) The Board shall be comprised of one Category A 
                member, one Category B member, two Category C members, 
                one Category D member, one Category E member, and one 
                Category F member.
            (2) Appointed members.--
                    (A) The President shall appoint the individual 
                members of the Oversight Board, of which--
                            (i) the Category A member should be 
                        selected from a list of individuals submitted 
                        by the Speaker of the House of Representatives;
                            (ii) the Category B member should be 
                        selected from a separate, non-overlapping list 
                        of individuals submitted by the Speaker of the 
                        House of Representatives;
                            (iii) the Category C members should be 
                        selected from a list submitted by the Majority 
                        Leader of the Senate;
                            (iv) the Category D member should be 
                        selected from a list submitted by the Minority 
                        Leader of the House of Representatives;
                            (v) the Category E member should be 
                        selected from a list submitted by the Minority 
                        Leader of the Senate; and
                            (vi) the Category F member may be selected 
                        in the President's sole discretion.
                    (B) After the President's selection of the Category 
                F Board member, for purposes of subparagraph (A) and 
                within a timely manner--
                            (i) the Speaker of the House of 
                        Representatives shall submit two non-
                        overlapping lists of at least three individuals 
                        to the President; one list shall include three 
                        individuals who maintain a primary residence in 
                        the territory or have a primary place of 
                        business in the territory;
                            (ii) the Senate Majority Leader shall 
                        submit a list of at least four individuals to 
                        the President;
                            (iii) the Minority Leader of the House of 
                        Representatives shall submit a list of at least 
                        three individuals to the President; and
                            (iv) the Minority Leader of the Senate 
                        shall submit a list of at least three 
                        individuals to the President.
                    (C) If the President does not select any of the 
                names submitted under subparagraphs (A) and (B), then 
                whoever submitted such list may supplement the lists 
                provided in this subsection with additional names.
                    (D) The Category A member shall maintain a primary 
                residence in the territory or have a primary place of 
                business in the territory.
                    (E) With respect to the appointment of a Board 
                member in Category A, B, C, D, or E, such an 
                appointment shall be by and with the advice and consent 
                of the Senate, unless the President appoints an 
                individual from a list, as provided in this subsection, 
                in which case no Senate confirmation is required.
                    (F) In the event of a vacancy of a Category A, B, 
                C, D, or E Board seat, the corresponding congressional 
                leader referenced in subparagraph (A) shall submit a 
                list pursuant to this subsection within a timely manner 
                of the Board member's resignation or removal becoming 
                effective.
                    (G) With respect to an Oversight Board for Puerto 
                Rico, in the event any of the 7 members have not been 
                appointed by September 1, 2016, then the President 
                shall appoint an individual from the list for the 
                current vacant category by September 15, 2016, provided 
                that such list includes at least 2 individuals per 
                vacancy who meet the requirements set forth in 
                subsection (f) and section 109, and are willing to 
                serve.
            (3) Ex officio member.--The Governor, or the Governor's 
        designee, shall be an ex officio member of the Oversight Board 
        without voting rights.
            (4) 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 
        Act as the ``Chair'') within 30 days of the full appointment of 
        the Oversight Board.
            (5) Term of service.--
                    (A) In general.--Each appointed member of the 
                Oversight Board shall be appointed for a term of 3 
                years.
                    (B) Removal.--The President may remove any member 
                of the Oversight Board only for cause.
                    (C) Continuation of service until successor 
                appointed.--Upon the expiration of a term of office, a 
                member of the Oversight Board may continue to serve 
                until a successor has been appointed.
                    (D) Reappointment.--An individual may serve 
                consecutive terms as an appointed member, provided that 
                such reappointment occurs in compliance with paragraph 
                (6).
            (6) Vacancies.--A vacancy on the Oversight Board shall be 
        filled in the same manner in which the original member was 
        appointed.
    (f) Eligibility for Appointments.--An individual is eligible for 
appointment as a member of the Oversight Board only if the individual--
            (1) has knowledge and expertise in finance, municipal bond 
        markets, management, law, or the organization or operation of 
        business or government; and
            (2) prior to appointment, an individual is not an officer, 
        elected official, or employee of the territorial government, a 
        candidate for elected office of the territorial government, or 
        a former elected official of the territorial government.
    (g) No Compensation for Service.--Members of the Oversight Board 
shall serve without pay, but may receive reimbursement from the 
Oversight Board for any reasonable and necessary expenses incurred by 
reason of service on the Oversight Board.
    (h) Adoption of Bylaws for Conducting Business of Oversight 
Board.--
            (1) In general.--As soon as practicable after the 
        appointment of all members and appointment of the Chair, the 
        Oversight Board shall adopt bylaws, rules, and procedures 
        governing its activities under this Act, including procedures 
        for hiring experts and consultants. Such bylaws, rules, and 
        procedures shall be public documents, and shall be submitted by 
        the Oversight Board upon adoption to the Governor, the 
        Legislature, the President, and Congress. The Oversight Board 
        may hire professionals as it determines to be necessary to 
        carry out this Act.
            (2) Activities requiring approval of majority of members.--
        Under the bylaws adopted pursuant to paragraph (1), the 
        Oversight Board may conduct its operations under such 
        procedures as it considers appropriate, except that an 
        affirmative vote of a majority of the members of the Oversight 
        Board's full appointed membership shall be required in order 
        for the Oversight Board to approve a Fiscal Plan under section 
        201, to approve a Budget under section 202, to cause a 
        legislative act not to be enforced under section 204, or to 
        approve or disapprove an infrastructure project as a Critical 
        Project under section 503.
            (3) Adoption of rules and regulations of territorial 
        government.--The Oversight Board may incorporate in its bylaws, 
        rules, and procedures under this subsection such rules and 
        regulations of the territorial government as it considers 
        appropriate to enable it to carry out its activities under this 
        Act with the greatest degree of independence practicable.
            (4) Executive session.--Upon a majority vote of the 
        Oversight Board's full voting membership, the Oversight Board 
        may conduct its business in an executive session that consists 
        solely of the Oversight Board's voting members and any 
        professionals the Oversight Board determines necessary and is 
        closed to the public, but only for the business items set forth 
        as part of the vote to convene an executive session.

SEC. 102. LOCATION OF OVERSIGHT BOARD.

    The Oversight Board shall have an office in the covered territory 
and additional offices as it deems necessary. At any time, any 
department or agency of the United States may provide the Oversight 
Board use of Federal facilities and equipment on a reimbursable or non-
reimbursable basis and subject to such terms and conditions as the head 
of that department or agency may establish.

SEC. 103. 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. The staff shall include a Revitalization Coordinator 
appointed pursuant to Title V of this Act. Any such personnel may 
include private citizens, employees of the Federal Government, or 
employees of the territorial government, provided, however, that the 
Executive Director may not fix the pay of employees of the Federal 
Government or the territorial government.
    (c) Inapplicability of Certain Employment and Procurement Laws.--
The Executive Director and staff of the Oversight Board may be 
appointed and paid without regard to any provision of the laws of the 
covered territory or the Federal Government governing appointments and 
salaries. Any provision of the laws of the covered territory governing 
procurement shall not apply to the Oversight Board.
    (d) Staff of Federal Agencies.--Upon request of the Chair, the head 
of any Federal department or agency may detail, on a reimbursable or 
nonreimbursable basis, and in accordance with the Intergovernmental 
Personnel Act of 1970 (5 U.S.C. 3371-3375), any of the personnel of 
that department or agency to the Oversight Board to assist it in 
carrying out its duties under this Act.
    (e) Staff of Territorial Government.--Upon request of the Chair, 
the head of any department or agency of the covered territory may 
detail, on a reimbursable or nonreimbursable basis, any of the 
personnel of that department or agency to the Oversight Board to assist 
it in carrying out its duties under this Act.

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) Obtaining Creditor Information.--
            (1) Upon request of the Oversight Board, each creditor or 
        organized group of creditors of a covered territory or covered 
        territorial instrumentality seeking to participate in voluntary 
        negotiations shall provide to the Oversight Board, and the 
        Oversight Board shall make publicly available to any other 
        participant, a statement setting forth--
                    (A) the name and address of the creditor or of each 
                member of an organized group of creditors; and
                    (B) the nature and aggregate amount of claims or 
                other economic interests held in relation to the issuer 
                as of the later of--
                            (i) the date the creditor acquired the 
                        claims or other economic interests or, in the 
                        case of an organized group of creditors, the 
                        date the group was formed; or
                            (ii) the date the Oversight Board was 
                        formed.
            (2) For purposes of this subsection, an organized group 
        shall mean multiple creditors that are--
                    (A) acting in concert to advance their common 
                interests, including, but not limited to, retaining 
                legal counsel to represent such multiple entities; and
                    (B) not composed entirely of affiliates or insiders 
                of one another.
            (3) The Oversight Board may request supplemental statements 
        to be filed by each creditor or organized group of creditors 
        quarterly, or if any fact in the most recently filed statement 
        has changed materially.
    (e) Gifts, Bequests, and Devises.--The Oversight Board may accept, 
use, and dispose of gifts, bequests, or devises of services or 
property, both real and personal, for the purpose of aiding or 
facilitating the work of the Oversight Board. Gifts, bequests, or 
devises of money and proceeds from sales of other property received as 
gifts, bequests, or devises shall be deposited in such account as the 
Oversight Board may establish and shall be available for disbursement 
upon order of the Chair, consistent with the Oversight Board's bylaws, 
or rules and procedures. All gifts, bequests or devises and the 
identities of the donors shall be publicly disclosed by the Oversight 
Board within 30 days of receipt.
    (f) Subpoena Power.--
            (1) In general.--The Oversight Board may issue subpoenas 
        requiring the attendance and testimony of witnesses and the 
        production of books, records, correspondence, memoranda, 
        papers, documents, electronic files, metadata, tapes, and 
        materials of any nature relating to any matter under 
        investigation by the Oversight Board. Jurisdiction to compel 
        the attendance of witnesses and the production of such 
        materials shall be governed by the statute setting forth the 
        scope of personal jurisdiction exercised by the covered 
        territory, or in the case of Puerto Rico, 32 L.P.R.A. App. III. 
        R. 4. 7., as amended.
            (2) Failure to obey a subpoena.--If a person refuses to 
        obey a subpoena issued under paragraph (1), the Oversight Board 
        may apply to the court of first instance of the covered 
        territory. Any failure to obey the order of the court may be 
        punished by the court in accordance with civil contempt laws of 
        the covered territory.
            (3) Service of subpoenas.--The subpoena of the Oversight 
        Board shall be served in the manner provided by the rules of 
        procedure for the courts of the covered territory, or in the 
        case of Puerto Rico, the Rules of Civil Procedure of Puerto 
        Rico, for subpoenas issued by the court of first instance of 
        the covered territory.
    (g) Authority To Enter Into Contracts.--The Executive Director may 
enter into such contracts as the Executive Director considers 
appropriate (subject to the approval of the Chair) consistent with the 
Oversight Board's bylaws, rules, and regulations to carry out the 
Oversight Board's responsibilities under this Act.
    (h) Authority To Enforce Certain Laws of the Covered Territory.--
The Oversight Board shall ensure the purposes of this Act are met, 
including by ensuring the prompt enforcement of any applicable laws of 
the covered territory prohibiting public sector employees from 
participating in a strike or lockout. In the application of this 
subsection, with respect to Puerto Rico, the term ``applicable laws'' 
refers to 3 L.P.R.A. 1451q and 3 L.P.R.A. 1451r, as amended.
    (i) Voluntary Agreement Certification.--
            (1) In general.--The Oversight Board shall issue a 
        certification to a covered territory or covered territorial 
        instrumentality if the Oversight Board determines, in its sole 
        discretion, that such covered territory or covered territorial 
        instrumentality, as applicable, has successfully reached a 
        voluntary agreement with holders of its Bond Claims to 
        restructure such Bond Claims--
                    (A) except as provided in subparagraph (C), if an 
                applicable Fiscal Plan has been certified, in a manner 
                that provides for a sustainable level of debt for such 
                covered territory or covered territorial 
                instrumentality, as applicable, and is in conformance 
                with the applicable certified Fiscal Plan;
                    (B) except as provided in subparagraph (C), if an 
                applicable Fiscal Plan has not yet been certified, in a 
                manner that provides, in the Oversight Board's sole 
                discretion, for a sustainable level of debt for such 
                covered territory or covered territorial 
                instrumentality; or
                    (C) notwithstanding subparagraphs (A) and (B), if 
                an applicable Fiscal Plan has not yet been certified 
                and the voluntary agreement is limited solely to an 
                extension of applicable principal maturities and 
                interest on Bonds issued by such covered territory or 
                covered territorial instrumentality, as applicable, for 
                a period of up to one year during which time no 
                interest will be paid on the Bond Claims affected by 
                the voluntary agreement.
            (2) Effectiveness.--The effectiveness of any voluntary 
        agreement referred to in paragraph (1) shall be conditioned 
        on--
                    (A) the Oversight Board delivering the 
                certification described in paragraph (1); and
                    (B) the agreement of a majority in amount of the 
                Bond Claims of a covered territory or a covered 
                territorial instrumentality that are to be affected by 
                such agreement, provided, however, that such agreement 
                is solely for purposes of serving as a Qualifying 
                Modification pursuant to subsection 601(g) of this Act 
                and shall not alter existing legal rights of holders of 
                Bond Claims against such covered territory or covered 
                territorial instrumentality that have not assented to 
                such agreement until an order approving the Qualifying 
                Modification has been entered pursuant to section 
                601(m)(1)(D) of this Act.
            (3) Preexisting voluntary agreements.--Any voluntary 
        agreement that the territorial government or any territorial 
        instrumentality has executed before May 18, 2016, with holders 
        of a majority in amount of Bond Claims that are to be affected 
        by such agreement to restructure such Bond Claims shall be 
        deemed to be in conformance with the requirements of this 
        subsection.
    (j) Restructuring Filings.--
            (1) 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 
        may certify a plan of adjustment only if it determines, in its 
        sole discretion, that it is consistent with the applicable 
        certified Fiscal Plan.
    (k) Civil Actions To Enforce Powers.--The Oversight Board may seek 
judicial enforcement of its authority to carry out its responsibilities 
under this Act.
    (l) Penalties.--
            (1) Acts prohibited.--Any officer or employee of the 
        territorial government who prepares, presents, or certifies any 
        information or report for the Oversight Board or any of its 
        agents that is intentionally false or misleading, or, upon 
        learning that any such information is false or misleading, 
        fails to immediately advise the Oversight Board or its agents 
        thereof in writing, shall be subject to prosecution and 
        penalties under any laws of the territory prohibiting the 
        provision of false information to government officials, which 
        in the case of Puerto Rico shall include 33 L.P.R.A. 4889, as 
        amended.
            (2) Administrative discipline.--In addition to any other 
        applicable penalty, any officer or employee of the territorial 
        government who knowingly and willfully violates paragraph (1) 
        or takes any such action in violation of any valid order of the 
        Oversight Board or fails or refuses to take any action required 
        by any such order, shall be subject to appropriate 
        administrative discipline, including (when appropriate) 
        suspension from duty without pay or removal from office, by 
        order of the Governor.
            (3) Report by governor on disciplinary actions taken.--In 
        the case of a violation of paragraph (2) by an officer or 
        employee of the territorial government, the Governor shall 
        immediately report to the Oversight Board all pertinent facts 
        together with a statement of the action taken thereon.
    (m) Electronic Reporting.--The Oversight Board may, in consultation 
with the Governor, ensure the prompt and efficient payment and 
administration of taxes through the adoption of electronic reporting, 
payment and auditing technologies.
    (n) Administrative Support Services.--Upon the request of the 
Oversight Board, the Administrator of General Services or other 
appropriate Federal agencies shall promptly provide to the Oversight 
Board, on a reimbursable or non-reimbursable basis, the administrative 
support services necessary for the Oversight Board to carry out its 
responsibilities under this Act.
    (o) Investigation of Disclosure and Selling Practices.--The 
Oversight Board may investigate the disclosure and selling practices in 
connection with the purchase of bonds issued by a covered territory for 
or on behalf of any retail investors including any underrepresentation 
of risk for such investors and any relationships or conflicts of 
interest maintained by such broker, dealer, or investment adviser is as 
provided in applicable laws and regulations.
    (p) Findings of Any Investigation.--The Oversight Board shall make 
public the findings of any investigation referenced in subsection (o).

SEC. 105. EXEMPTION FROM LIABILITY FOR CLAIMS.

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

SEC. 107. 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 shall use its powers with respect 
to the Territory Budget of the covered territory to ensure that 
sufficient funds are available to cover all expenses of the Oversight 
Board.
            (1) Permanent funding.--Within 30 days after the date of 
        enactment of this Act, the territorial government shall 
        designate a dedicated funding source, not subject to subsequent 
        legislative appropriations, sufficient to support the annual 
        expenses of the Oversight Board as determined in the Oversight 
        Board's sole and exclusive discretion.
            (2)(A) Initial funding.--On the date of establishment of an 
        Oversight Board in accordance with section 101(b) and on the 
        5th day of each month thereafter, the Governor of the covered 
        territory shall transfer or cause to be transferred the greater 
        of $2,000,000 or such amount as shall be determined by the 
        Oversight Board pursuant to subsection (a) to a new account 
        established by the territorial government, which shall be 
        available to and subject to the exclusive control of the 
        Oversight Board, without any legislative appropriations of the 
        territorial government.
            (B) Termination.--The initial funding requirements under 
        subparagraph (A) shall terminate upon the territorial 
        government designating a dedicated funding source not subject 
        to subsequent legislative appropriations under paragraph (1).
            (3) Remission of excess funds.--If the Oversight Board 
        determines in its sole discretion that any funds transferred 
        under this subsection exceed the amounts required for the 
        Oversight Board's operations as established pursuant to 
        subsection (a), any such excess funds shall be periodically 
        remitted to the territorial government.

SEC. 108. AUTONOMY OF OVERSIGHT BOARD.

    (a) In General.--Neither the Governor nor the Legislature may--
            (1) exercise any control, supervision, oversight, or review 
        over the Oversight Board or its activities; or
            (2) enact, implement, or enforce any statute, resolution, 
        policy, or rule that would impair or defeat the purposes of 
        this Act, as determined by the Oversight Board.
    (b) Oversight Board Legal Representation.--In any action brought 
by, on behalf of, or against the Oversight Board, the Oversight Board 
shall be represented by such counsel as it may hire or retain so long 
as the representation complies with the applicable professional rules 
of conduct governing conflicts of interests.

SEC. 109. ETHICS.

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

             TITLE II--RESPONSIBILITIES OF OVERSIGHT BOARD

SEC. 201. APPROVAL OF FISCAL PLANS.

    (a) In General.--As soon as practicable after all of the members 
and the Chair have been appointed to the Oversight Board in accordance 
with section 101(e) in the fiscal year in which the Oversight Board is 
established, and in each fiscal year thereafter during which the 
Oversight Board is in operation, the Oversight Board shall deliver a 
notice to the Governor providing a schedule for the process of 
development, submission, approval, and certification of Fiscal Plans. 
The notice may also set forth a schedule for revisions to any Fiscal 
Plan that has already been certified, 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, 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) adopt appropriate recommendations submitted by 
                the Oversight Board under section 205(a);
                    (L) include such additional information as the 
                Oversight Board deems necessary;
                    (M) ensure that assets, funds, or resources of a 
                territorial instrumentality are not loaned to, 
                transferred to, or otherwise used for the benefit of a 
                covered territory or another covered territorial 
                instrumentality of a covered territory, unless 
                permitted by the constitution of the territory, an 
                approved plan of adjustment under title III, or a 
                Qualifying Modification approved under title VI; and
                    (N) respect the relative lawful priorities or 
                lawful liens, as may be applicable, in the 
                constitution, other laws, or agreements of a covered 
                territory or covered territorial instrumentality in 
                effect prior to the date of enactment of this Act.
            (2) Term.--A Fiscal Plan developed under this section shall 
        cover a period of fiscal years as determined by the Oversight 
        Board in its sole discretion but in any case a period of not 
        less than 5 fiscal years from the fiscal year in which it is 
        certified by the Oversight Board.
    (c) Development, Review, Approval, and Certification of Fiscal 
Plans.--
            (1) Timing requirement.--The Governor may not submit to the 
        Legislature a Territory Budget under section 202 for a fiscal 
        year unless the Oversight Board has certified the Territory 
        Fiscal Plan for that fiscal year in accordance with this 
        subsection, unless the Oversight Board in its sole discretion 
        waives this requirement.
            (2) Fiscal plan developed by governor.--The Governor shall 
        submit to the Oversight Board any proposed Fiscal Plan required 
        by the Oversight Board by the time specified in the notice 
        delivered under subsection (a).
            (3) Review by the oversight board.--The Oversight Board 
        shall review any proposed Fiscal Plan to determine whether it 
        satisfies the requirements set forth in subsection (b) and, if 
        the Oversight Board determines in its sole discretion that the 
        proposed Fiscal Plan--
                    (A) satisfies such requirements, the Oversight 
                Board shall approve the proposed Fiscal Plan; or
                    (B) does not satisfy such requirements, the 
                Oversight Board shall provide to the Governor--
                            (i) a notice of violation that includes 
                        recommendations for revisions to the applicable 
                        Fiscal Plan; and
                            (ii) an opportunity to correct the 
                        violation in accordance with subsection (d)(1).
    (d) Revised Fiscal Plan.--
            (1) In general.--If the Governor receives a notice of 
        violation under subsection (c)(3), the Governor shall submit to 
        the Oversight Board a revised proposed Fiscal Plan in 
        accordance with subsection (b) by the time specified in the 
        notice delivered under subsection (a). The Governor may submit 
        as many revised Fiscal Plans to the Oversight Board as the 
        schedule established in the notice delivered under subsection 
        (a) permits.
            (2) Development by oversight board.--If the Governor fails 
        to submit to the Oversight Board a Fiscal Plan that the 
        Oversight Board determines in its sole discretion satisfies the 
        requirements set forth in subsection (b) by the time specified 
        in the notice delivered under subsection (a), the Oversight 
        Board shall develop and submit to the Governor and the 
        Legislature a Fiscal Plan that satisfies the requirements set 
        forth in subsection (b).
    (e) Approval and Certification.--
            (1) Approval of fiscal plan developed by governor.--If the 
        Oversight Board approves a Fiscal Plan under subsection (c)(3), 
        it shall deliver a compliance certification for such Fiscal 
        Plan to the Governor and the Legislature.
            (2) Deemed approval of fiscal plan developed by oversight 
        board.--If the Oversight Board develops a Fiscal Plan under 
        subsection (d)(2), such Fiscal Plan shall be deemed approved by 
        the Governor, and the Oversight Board shall issue a compliance 
        certification for such Fiscal Plan to the Governor and the 
        Legislature.
    (f) Joint Development of Fiscal Plan.--Notwithstanding any other 
provision of this section, if the Governor and the Oversight Board 
jointly develop a Fiscal Plan for the fiscal year that meets the 
requirements under this section, and that the Governor and the 
Oversight Board certify that the fiscal plan reflects a consensus 
between the Governor and the Oversight Board, then such Fiscal Plan 
shall serve as the Fiscal Plan for the territory or territorial 
instrumentality for that fiscal year.

SEC. 202. APPROVAL OF BUDGETS.

    (a) Reasonable Schedule for Development of Budgets.--As soon as 
practicable after all of the members and the Chair have been appointed 
to the Oversight Board in the fiscal year in which the Oversight Board 
is established, and in each fiscal year thereafter during which the 
Oversight Board is in operation, the Oversight Board shall deliver a 
notice to the Governor and the Legislature providing a schedule for 
developing, submitting, approving, and certifying Budgets for a period 
of fiscal years as determined by the Oversight Board in its sole 
discretion but in any case a period of not less than one fiscal year 
following the fiscal year in which the notice is delivered. The notice 
may also set forth a schedule for revisions to Budgets that have 
already been certified, which revisions must be subject to subsequent 
approval and certification by the Oversight Board. 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 
        subsection (d)(2)) and such Budget shall be--
                    (A) deemed to be approved by the Governor and the 
                Legislature;
                    (B) the subject of a compliance certification 
                issued by the Oversight Board to the Governor and the 
                Legislature; and
                    (C) in full force and effect beginning on the first 
                day of the applicable fiscal year.
            (4) Deemed certification of instrumentality budgets.--If 
        the Governor fails to develop an Instrumentality Budget that is 
        a compliant budget by the day before the first day of the 
        fiscal year for which the Instrumentality Budget is being 
        developed, the Oversight Board shall submit an Instrumentality 
        Budget to the Governor (including any revision to the 
        Instrumentality Budget made by the Oversight Board pursuant to 
        subsection (c)(2)) and such Budget shall be--
                    (A) deemed to be approved by the Governor;
                    (B) the subject of a compliance certification 
                issued by the Oversight Board to the Governor; and
                    (C) in full force and effect beginning on the first 
                day of the applicable fiscal year.
    (f) Joint Development of Budgets.--Notwithstanding any other 
provision of this section, if, in the case of a Territory Budget, the 
Governor, the Legislature, and the Oversight Board, or in the case of 
an Instrumentality Budget, the Governor and the Oversight Board, 
jointly develop such Budget for the fiscal year that meets the 
requirements under this section, and that the relevant parties certify 
that such budget reflects a consensus among them, then such Budget 
shall serve as the Budget for the territory or territorial 
instrumentality for that fiscal year.

SEC. 203. 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.--
            (1) Inconsistency.--If the territorial government fails to 
        provide additional information under subsection (b)(1)(A), or 
        fails to correct an inconsistency under subsection (b)(1)(B), 
        prior to the applicable deadline under subsection (b)(2), the 
        Oversight Board shall certify to the President, the House of 
        Representatives Committee on Natural Resources, the Senate 
        Committee on Energy and Natural Resources, the Governor, and 
        the Legislature that the territorial government is inconsistent 
        with the applicable certified Budget, and shall describe the 
        nature and amount of the inconsistency.
            (2) Correction.--If the Oversight Board determines that the 
        territorial government has initiated such measures as the 
        Oversight Board considers sufficient to correct an 
        inconsistency certified under paragraph (1), the Oversight 
        Board shall certify the correction to the President, the House 
        of Representatives Committee on Natural Resources, the Senate 
        Committee on Energy and Natural Resources, the Governor, and 
        the Legislature.
    (d) Budget Reductions by Oversight Board.--If the Oversight Board 
determines that the Governor, in the case of any then-applicable 
certified Instrumentality Budgets, and the Governor and the 
Legislature, in the case of the then-applicable certified Territory 
Budget, have failed to correct an inconsistency identified by the 
Oversight Board under subsection (c), the Oversight Board shall--
            (1) with respect to the territorial government, other than 
        covered territorial instrumentalities, make appropriate 
        reductions in nondebt expenditures to ensure that the actual 
        quarterly revenues and expenditures for the territorial 
        government are in compliance with the applicable certified 
        Territory Budget or, in the case of the fiscal year in which 
        the Oversight Board is established, the budget adopted by the 
        Governor and the Legislature; and
            (2) with respect to covered territorial instrumentalities 
        at the sole discretion of the Oversight Board--
                    (A) make reductions in nondebt expenditures to 
                ensure that the actual quarterly revenues and expenses 
                for the covered territorial instrumentality are in 
                compliance with the applicable certified Budget or, in 
                the case of the fiscal year in which the Oversight 
                Board is established, the budget adopted by the 
                Governor and the Legislature or the covered territorial 
                instrumentality, as applicable; or
                    (B)(i) institute automatic hiring freezes at the 
                covered territorial instrumentality; and
                    (ii) prohibit the covered territorial 
                instrumentality from entering into any contract or 
                engaging in any financial or other transactions, unless 
                the contract or transaction was previously approved by 
                the Oversight Board.
    (e) Termination of Budget Reductions.--The Oversight Board shall 
cancel the reductions, hiring freezes, or prohibition on contracts and 
financial transactions under subsection (d) if the Oversight Board 
determines that the territorial government or covered territorial 
instrumentality, as applicable, has initiated appropriate measures to 
reduce expenditures or increase revenues to ensure that the territorial 
government or covered territorial instrumentality is in compliance with 
the applicable certified Budget or, in the case of the fiscal year in 
which the Oversight Board is established, the budget adopted by the 
Governor and the Legislature.

SEC. 204. 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 paragraph (3)(C) that a 
                law is significantly inconsistent with the Fiscal Plan, 
                the Oversight Board shall direct the territorial 
                government to--
                            (i) correct the law to eliminate the 
                        inconsistency; or
                            (ii) provide an explanation for the 
                        inconsistency that the Oversight Board finds 
                        reasonable and appropriate.
            (5) Failure to comply.--If the territorial government fails 
        to comply with a direction given by the Oversight Board under 
        paragraph (4) with respect to a law, the Oversight Board may 
        take such actions as it considers necessary, consistent with 
        this Act, to ensure that the enactment or enforcement of the 
        law will not adversely affect the territorial government's 
        compliance with the Fiscal Plan, including preventing the 
        enforcement or application of the law.
            (6) Preliminary review of proposed acts.--At the request of 
        the Legislature, the Oversight Board may conduct a preliminary 
        review of proposed legislation before the Legislature to 
        determine whether the legislation as proposed would be 
        consistent with the applicable Fiscal Plan under this subtitle, 
        except that any such preliminary review shall not be binding on 
        the Oversight Board in reviewing any law subsequently submitted 
        under this subsection.
    (b) Effect of Approved Fiscal Plan on Contracts, Rules, and 
Regulations.--
            (1) Transparency in contracting.--The Oversight Board shall 
        work with a covered territory's office of the comptroller or 
        any functionally equivalent entity to promote compliance with 
        the applicable law of any covered territory that requires 
        agencies and instrumentalities of the territorial government to 
        maintain a registry of all contracts executed, including 
        amendments thereto, and to remit a copy to the office of the 
        comptroller for inclusion in a comprehensive database available 
        to the public. With respect to Puerto Rico, the term 
        ``applicable law'' refers to 2 L.P.R.A. 97, as amended.
            (2) Authority to review certain contracts.--The Oversight 
        Board may establish policies to require prior Oversight Board 
        approval of certain contracts, including leases and contracts 
        to a governmental entity or government-owned corporations 
        rather than private enterprises that are proposed to be 
        executed by the territorial government, to ensure such proposed 
        contracts promote market competition and are not inconsistent 
        with the approved Fiscal Plan.
            (3) Sense of congress.--It is the sense of Congress that 
        any policies established by the Oversight Board pursuant to 
        paragraph (2) should be designed to make the government 
        contracting process more effective, to increase the public's 
        faith in this process, to make appropriate use of the Oversight 
        Board's time and resources, to make the territorial government 
        a facilitator and not a competitor to private enterprise, and 
        to avoid creating any additional bureaucratic obstacles to 
        efficient contracting.
            (4) Authority to review certain rules, regulations, and 
        executive orders.--The provisions of this paragraph shall apply 
        with respect to a rule, regulation, or executive order proposed 
        to be issued by the Governor (or the head of any department or 
        agency of the territorial government) in the same manner as 
        such provisions apply to a contract.
            (5) Failure to comply.--If a contract, rule, regulation, or 
        executive order fails to comply with policies established by 
        the Oversight Board under this subsection, the Oversight Board 
        may take such actions as it considers necessary to ensure that 
        such contract, rule, executive order or regulation will not 
        adversely affect the territorial government's compliance with 
        the Fiscal Plan, including by preventing the execution or 
        enforcement of the contract, rule, executive order or 
        regulation.
    (c) Restrictions on Budgetary Adjustments.--
            (1) Submissions of requests to oversight board.--If the 
        Governor submits a request to the Legislature for the 
        reprogramming of any amounts provided in a certified Budget, 
        the Governor shall submit such request to the Oversight Board, 
        which shall analyze whether the proposed reprogramming is 
        significantly inconsistent with the Budget, and submit its 
        analysis to the Legislature as soon as practicable after 
        receiving the request.
            (2) No action permitted until analysis received.--The 
        Legislature shall not adopt a reprogramming, and no officer or 
        employee of the territorial government may carry out any 
        reprogramming, until the Oversight Board has provided the 
        Legislature with an analysis that certifies such reprogramming 
        will not be inconsistent with the Fiscal Plan and Budget.
            (3) Prohibition on action until oversight board is 
        appointed.--
                    (A) During the period after a territory becomes a 
                covered territory and prior to the appointment of all 
                members and the Chair of the Oversight Board, such 
                covered territory shall not enact new laws that either 
                permit the transfer of any funds or assets outside the 
                ordinary course of business or that are inconsistent 
                with the constitution or laws of the territory as of 
                the date of enactment of this Act, provided that any 
                executive or legislative action authorizing the 
                movement of funds or assets during this time period may 
                be subject to review and rescission by the Oversight 
                Board upon appointment of the Oversight Board's full 
                membership.
            (B) Upon appointment of the Oversight Board's full 
        membership, the Oversight Board may review, and in its sole 
        discretion, rescind, any law that--
                    (i) was enacted during the period between, with 
                respect to Puerto Rico, May 4, 2016; or with respect to 
                any other territory, 45 days prior to the establishment 
                of the Oversight Board for such territory, and the date 
                of appointment of all members and the Chair of the 
                Oversight Board; and
                    (ii) alters pre-existing priorities of creditors in 
                a manner outside the ordinary course of business or 
                inconsistent with the territory's constitution or the 
                laws of the territory as of, in the case of Puerto 
                Rico, May 4, 2016, or with respect to any other 
                territory, 45 days prior to the establishment of the 
                Oversight Board for such territory;
        but such rescission shall only be to the extent that the law 
        alters such priorities.
    (d) Implementation of Federal Programs.--In taking actions under 
this Act, the Oversight Board shall not exercise applicable authorities 
to impede territorial actions taken to--
            (1) comply with a court-issued consent decree or 
        injunction, or an administrative order or settlement with a 
        Federal agency, with respect to Federal programs;
            (2) implement a federally authorized or federally delegated 
        program;
            (3) implement territorial laws, which are consistent with a 
        certified Fiscal Plan, that execute Federal requirements and 
        standards; or
            (4) preserve and maintain federally funded mass 
        transportation assets.

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

    (a) In General.--The Oversight Board may at any time submit 
recommendations to the Governor or the Legislature on actions the 
territorial government may take to ensure compliance with the Fiscal 
Plan, or to otherwise promote the financial stability, economic growth, 
management responsibility, and service delivery efficiency of the 
territorial government, including recommendations relating to--
            (1) the management of the territorial government's 
        financial affairs, including economic forecasting and multiyear 
        fiscal forecasting capabilities, information technology, 
        placing controls on expenditures for personnel, reducing 
        benefit costs, reforming procurement practices, and placing 
        other controls on expenditures;
            (2) the structural relationship of departments, agencies, 
        and independent agencies within the territorial government;
            (3) the modification of existing revenue structures, or the 
        establishment of additional revenue structures;
            (4) the establishment of alternatives for meeting 
        obligations to pay for the pensions of territorial government 
        employees;
            (5) modifications or transfers of the types of services 
        that are the responsibility of, and are delivered by the 
        territorial government;
            (6) modifications of the types of services that are 
        delivered by entities other than the territorial government 
        under alternative service delivery mechanisms;
            (7) the effects of the territory's laws and court orders on 
        the operations of the territorial government;
            (8) the establishment of a personnel system for employees 
        of the territorial government that is based upon employee 
        performance standards;
            (9) the improvement of personnel training and proficiency, 
        the adjustment of staffing levels, and the improvement of 
        training and performance of management and supervisory 
        personnel; and
            (10) the privatization and commercialization of entities 
        within the territorial government.
    (b) Response to Recommendations by the Territorial Government.--
            (1) 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 (as such term is defined in section 101 of title 11, United 
States Code), shall determine, in its sole discretion, that--
            (1) the entity has made good-faith efforts to reach a 
        consensual restructuring with creditors;
            (2) the entity has--
                    (A) adopted procedures necessary to deliver timely 
                audited financial statements; and
                    (B) made public draft financial statements and 
                other information sufficient for any interested person 
                to make an informed decision with respect to a possible 
                restructuring;
            (3) the entity is either a covered territory that has 
        adopted a Fiscal Plan certified by the Oversight Board, a 
        covered territorial instrumentality that is subject to a 
        Territory Fiscal Plan certified by the Oversight Board, or a 
        covered territorial instrumentality that has adopted an 
        Instrumentality Fiscal Plan certified by the Oversight Board; 
        and
            (4)(A) no order approving a Qualifying Modification under 
        section 601 has been entered with respect to such entity; or
            (B) if an order approving a Qualifying Modification has 
        been entered with respect to such entity, the entity is unable 
        to make its debt payments notwithstanding the approved 
        Qualifying Modification, in which case, all claims affected by 
        the Qualifying Modification shall be subject to a title III 
        case.
    (b) Issuance of Restructuring Certification.--The issuance of a 
restructuring certification under this section requires a vote of no 
fewer than 5 members of the Oversight Board in the affirmative, which 
shall satisfy the requirement set forth in section 302(2) of this Act.

SEC. 207. 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 any certified Fiscal Plan;
            (4) the precise manner in which funds allocated to the 
        Oversight Board under section 107 and, as applicable, section 
        104(e) have been spent by the Oversight Board during the fiscal 
        year; and
            (5) any other activities of the Oversight Board during the 
        fiscal year.
    (b) Report on Discretionary Tax Abatement Agreements.--Within six 
months of the establishment of the Oversight Board, the Governor shall 
submit a report to the Oversight Board documenting all existing 
discretionary tax abatement or similar tax relief agreements to which 
the territorial government, or any territorial instrumentality, is a 
party, provided that--
            (1) nothing in this Act shall be interpreted to limit the 
        power of the territorial government or any territorial 
        instrumentality to execute or modify discretionary tax 
        abatement or similar tax relief agreements, or to enforce 
        compliance with the terms and conditions of any discretionary 
        tax abatement or similar tax relief agreement, to which the 
        territorial government or any territorial instrumentality is a 
        party; and
            (2) the members and staff of the Oversight Board shall not 
        disclose the contents of the report described in this 
        subsection, and shall otherwise comply with all applicable 
        territorial and Federal laws and regulations regarding the 
        handling of confidential taxpayer information.
    (c) Quarterly Reports of Cash Flow.--The Oversight Board, when 
feasible, shall report on the amount of cash flow available for the 
payment of debt service on all notes, bonds, debentures, credit 
agreements, or other instruments for money borrowed whose enforcement 
is subject to a stay or moratorium hereunder, together with any 
variance from the amount set forth in the debt sustainability analysis 
of the Fiscal Plan under section 201(b)(1)(I).

SEC. 209. 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 a covered territory or 
covered territorial instrumentality. The United States is not 
responsible or liable for the payment of any principal of or interest 
on any bond, note, or other obligation issued by a covered territory or 
covered territorial instrumentality.
    (b) Subject to Appropriations.--Any claim to which the United 
States is determined to be liable under this Act shall be subject to 
appropriations.
    (c) Funding.--No Federal funds shall be authorized by this Act for 
the payment of any liability of the territory or territorial 
instrumentality.

SEC. 211. 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.

SEC. 212. INTERVENTION IN LITIGATION.

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

                    TITLE III--ADJUSTMENTS OF DEBTS

SEC. 301. 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) Holder of a claim or interest.--The term ``holder of a 
        claim or interest'', when used in section 1126 of title 11, 
        United States Code, made applicable in a case under this title 
        by subsection (a)--
                    (A) shall exclude any Issuer or Authorized 
                Instrumentality of the Territory Government Issuer (as 
                defined under Title VI of this Act) or a corporation, 
                trust or other legal entity that is controlled by the 
                Issuer or an Authorized Territorial Instrumentality of 
                the Territory Government Issuer, provided that the 
                beneficiaries of such claims, to the extent they are 
                not referenced in this subparagraph, shall not be 
                excluded, and that, for each excluded trust or other 
                legal entity, the court shall, upon the request of any 
                participant or beneficiary of such trust or entity, at 
                any time after the commencement of the case, order the 
                appointment of a separate committee of creditors 
                pursuant to section 1102(a)(2) of title 11, United 
                States Code; and
                    (B) with reference to Insured Bonds, shall mean the 
                monoline insurer insuring such Insured Bond to the 
                extent such insurer is granted the right to vote 
                Insured Bonds for purposes of directing remedies or 
                consenting to proposed amendments or modifications as 
                provided in the applicable documents pursuant to which 
                such Insured Bond was issued and insured.
            (4) Insured bond.--The term ``Insured Bond'' means a bond 
        subject to a financial guarantee or similar insurance contract, 
        policy and/or surety issued by a monoline insurer.
            (5) Property of the estate.--The term ``property of the 
        estate'', when used in a section of title 11, United States 
        Code, made applicable in a case under this title by subsection 
        (a), means property of the debtor.
            (6) State.--The term ``State'' when used in a section of 
        title 11, United States Code, made applicable in a case under 
        this title by subsection (a) means State or territory when used 
        in reference to the relationship of a State to the municipality 
        of the State or the territorial instrumentality of a territory, 
        as applicable.
            (7) Trustee.--The term ``trustee'', when used in a section 
        of title 11, United States Code, made applicable in a case 
        under this title by subsection (a), means the Oversight Board, 
        except as provided in section 926 of title 11, United States 
        Code. The term ``trustee'' as described in this paragraph does 
        not mean the U.S. Trustee, an official of the United States 
        Trustee Program, which is a component of the United States 
        Department of Justice.
    (d) Reference to Title.--Solely for purposes of this title, a 
reference to ``this title'', ``this chapter'', or words of similar 
import in a section of title 11, United States Code, made applicable in 
a case under this title by subsection (a) or to ``this title'', ``title 
11'', ``Chapter 9'', ``Chapter 11'', ``the Code'', or words of similar 
import in the Federal Rules of Bankruptcy Procedure made applicable in 
a case under this title shall be deemed to be a reference to this 
title.
    (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 Oversight Board shall consider whether such claims 
are secured and whether such claims have priority over other claims.
    (f) Operative Clauses.--A section made applicable in a case under 
this title by subsection (a) that is operative if the business of the 
debtor is authorized to be operated is operative in a case under this 
title.

SEC. 302. WHO MAY BE A DEBTOR.

    An entity may be a debtor under this title if--
            (1) the entity is--
                    (A) a territory that has requested the 
                establishment of an Oversight Board or has had an 
                Oversight Board established for it by the United States 
                Congress in accordance with section 101 of this Act; or
                    (B) a covered territorial instrumentality of a 
                territory described in paragraph (1)(A);
            (2) the Oversight Board has issued a certification under 
        section 206(b) of this Act for such entity; and
            (3) the entity desires to effect a plan to adjust its 
        debts.

SEC. 303. RESERVATION OF TERRITORIAL POWER TO CONTROL TERRITORY AND 
              TERRITORIAL INSTRUMENTALITIES.

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

SEC. 304. PETITION AND PROCEEDINGS RELATING TO PETITION.

    (a) Commencement of Case.--A voluntary case under this title is 
commenced by the filing with the district court of a petition by the 
Oversight Board pursuant to the determination under section 206 of this 
Act.
    (b) Objection to Petition.--After any objection to the petition, 
the court, after notice and a hearing, may dismiss the petition if the 
petition does not meet the requirements of this title; however, this 
subsection shall not apply in any case during the first 120 days after 
the date on which such case is commenced under this title.
    (c) Order for Relief.--The commencement of a case under this title 
constitutes an order for relief.
    (d) Appeal.--The court may not, on account of an appeal from an 
order for relief, delay any proceeding under this title in the case in 
which the appeal is being taken, nor shall any court order a stay of 
such proceeding pending such appeal.
    (e) Validity of Debt.--The reversal on appeal of a finding of 
jurisdiction shall not affect the validity of any debt incurred that is 
authorized by the court under section 364(c) or 364(d) of title 11, 
United States Code.
    (f) Joint Filing of Petitions and Plans Permitted.--The Oversight 
Board, on behalf of debtors under this title, may file petitions or 
submit or modify plans of adjustment jointly if the debtors are 
affiliates; provided, however, that nothing in this title shall be 
construed as authorizing substantive consolidation of the cases of 
affiliated debtors.
    (g) Joint Administration of Affiliated Cases.--If the Oversight 
Board, on behalf of a debtor and one or more affiliates, has filed 
separate cases and the Oversight Board, on behalf of the debtor or one 
of the affiliates, files a motion to administer the cases jointly, the 
court may order a joint administration of the cases.
    (h) Public Safety.--This Act may not be construed to permit the 
discharge of obligations arising under Federal police or regulatory 
laws, including laws relating to the environment, public health or 
safety, or territorial laws implementing such Federal legal provisions. 
This includes compliance obligations, requirements under consent 
decrees or judicial orders, and obligations to pay associated 
administrative, civil, or other penalties.
    (i) Voting on Debt Adjustment Plans Not Stayed.--Notwithstanding 
any provision in this title to the contrary, including sections of 
title 11, United States Code, incorporated by reference, nothing in 
this section shall prevent the holder of a claim from voting on or 
consenting to a proposed modification of such claim under title VI of 
this Act.

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

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

SEC. 306. JURISDICTION.

    (a) Federal Subject Matter Jurisdiction.--The district courts shall 
have--
            (1) except as provided in paragraph (2), original and 
        exclusive jurisdiction of all cases under this title; and
            (2) except as provided in subsection (b), and 
        notwithstanding any Act of Congress that confers exclusive 
        jurisdiction on a court or courts other than the district 
        courts, original but not exclusive jurisdiction of all civil 
        proceedings arising under this title, or arising in or related 
        to cases under this title.
    (b) Property Jurisdiction.--The district court in which a case 
under this title is commenced or is pending shall have exclusive 
jurisdiction of all property, wherever located, of the debtor as of the 
commencement of the case.
    (c) Personal Jurisdiction.--The district court in which a case 
under this title is pending shall have personal jurisdiction over any 
person or entity.
    (d) Removal, Remand, and Transfer.--
            (1) Removal.--A party may remove any claim or cause of 
        action in a civil action, other than a proceeding before the 
        United States Tax Court or a civil action by a governmental 
        unit to enforce the police or regulatory power of the 
        governmental unit, to the district court for the district in 
        which the civil action is pending, if the district court has 
        jurisdiction of the claim or cause of action under this 
        section.
            (2) Remand.--The district court to which the claim or cause 
        of action is removed under paragraph (1) may remand the claim 
        or cause of action on any equitable ground. An order entered 
        under this subsection remanding a claim or cause of action, or 
        a decision not to remand, is not reviewable by appeal or 
        otherwise by the court of appeals under section 158(d), 1291 or 
        1292 of title 28, United States Code, or by the Supreme Court 
        of the United States under section 1254 of title 28, United 
        States Code.
            (3) Transfer.--A district court shall transfer any civil 
        proceeding arising under this title, or arising in or related 
        to a case under this title, to the district court in which the 
        case under this title is pending.
    (e) Appeal.--
            (1) An appeal shall be taken in the same manner as appeals 
        in civil proceedings generally are taken to the courts of 
        appeals from the district court.
            (2) The court of appeals for the circuit in which a case 
        under this title has venue pursuant to section 307 of this 
        title shall have jurisdiction of appeals from all final 
        decisions, judgments, orders and decrees entered under this 
        title by the district court.
            (3) The court of appeals for the circuit in which a case 
        under this title has venue pursuant to section 307 of this 
        title shall have jurisdiction to hear appeals of interlocutory 
        orders or decrees if--
                    (A) the district court on its own motion or on the 
                request of a party to the order or decree certifies 
                that--
                            (i) the order or decree involves a question 
                        of law as to which there is no controlling 
                        decision of the court of appeals for the 
                        circuit or of the Supreme Court of the United 
                        States, or involves a matter of public 
                        importance;
                            (ii) the order or decree involves a 
                        question of law requiring the resolution of 
                        conflicting decisions; or
                            (iii) an immediate appeal from the order or 
                        decree may materially advance the progress of 
                        the case or proceeding in which the appeal is 
                        taken; and
                    (B) the court of appeals authorizes the direct 
                appeal of the order or decree.
            (4) If the district court on its own motion or on the 
        request of a party determines that a circumstance specified in 
        clauses (i), (ii), or (iii) of paragraph (3)(A) exists, then 
        the district court shall make the certification described in 
        paragraph (3).
            (5) The parties may supplement the certification with a 
        short statement of the basis for the certification issued by 
        the district court under paragraph (3)(A).
            (6) Except as provided in section 304(d), an appeal of an 
        interlocutory order or decree does not stay any proceeding of 
        the district court from which the appeal is taken unless the 
        district court, or the court of appeals in which the appeal is 
        pending, issues a stay of such proceedings pending the appeal.
            (7) Any request for a certification in respect to an 
        interlocutory appeal of an order or decree shall be made not 
        later than 60 days after the entry of the order or decree.
    (f) Reallocation of Court Staff.--Notwithstanding any law to the 
contrary, the clerk of the court in which a case is pending shall 
reallocate as many staff and assistants as the clerk deems necessary to 
ensure that the court has adequate resources to provide for proper case 
management.

SEC. 307. VENUE.

    (a) In General.--Venue shall be proper in--
            (1) with respect to a territory, the district court for the 
        territory or, for any territory that does not have a district 
        court, the United States District Court for the District of 
        Hawaii; and
            (2) with respect to a covered territorial instrumentality, 
        the district court for the territory in which the covered 
        territorial instrumentality is located or, for any territory 
        that does not have a district court, the United States District 
        Court for the District of Hawaii.
    (b) Alternative Venue.--
            (1) If the Oversight Board so determines in its sole 
        discretion, then venue shall be proper in the district court 
        for the jurisdiction in which the Oversight Board maintains an 
        office that is located outside the territory.
            (2) With respect to paragraph (1), the Oversight Board may 
        consider, among other things--
                    (A) the resources of the district court to 
                adjudicate a case or proceeding; and
                    (B) the impact on witnesses who may be called in 
                such a case or proceeding.

SEC. 308. SELECTION OF PRESIDING JUDGE.

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

SEC. 309. ABSTENTION.

    Nothing in this title prevents a district court in the interests of 
justice from abstaining from hearing a particular proceeding arising in 
or related to a case under this title.

SEC. 310. 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 Oversight Board, after the issuance of a 
certificate pursuant to section 104(j) of this Act, may file a plan of 
adjustment of the debts of the debtor.
    (b) Deadline for Filing Plan.--If the Oversight Board does not file 
a plan of adjustment with the petition, the Oversight Board shall file 
a plan of adjustment at the time set by the court.

SEC. 313. MODIFICATION OF PLAN.

    The Oversight Board, after the issuance of a certification pursuant 
to section 104(j) of this Act, may modify the plan at any time before 
confirmation, but may not modify the plan so that the plan as modified 
fails to meet the requirements of this title. After the Oversight Board 
files a modification, the plan as modified becomes the plan.

SEC. 314. CONFIRMATION.

    (a) Objection.--A special tax payer may object to confirmation of a 
plan.
    (b) Confirmation.--The court shall confirm the plan if--
            (1) the plan complies with the provisions of title 11 of 
        the United States Code, made applicable to a case under this 
        title by section 301 of this Act;
            (2) the plan complies with the provisions of this title;
            (3) the debtor is not prohibited by law from taking any 
        action necessary to carry out the plan;
            (4) except to the extent that the holder of a particular 
        claim has agreed to a different treatment of such claim, the 
        plan provides that on the effective date of the plan each 
        holder of a claim of a kind specified in 507(a)(2) of title 11, 
        United States Code, will receive on account of such claim cash 
        equal to the allowed amount of such claim;
            (5) any legislative, regulatory, or electoral approval 
        necessary under applicable law in order to carry out any 
        provision of the plan has been obtained, or such provision is 
        expressly conditioned on such approval;
            (6) the plan is feasible and in the best interests of 
        creditors, which shall require the court to consider whether 
        available remedies under the non-bankruptcy laws and 
        constitution of the territory would result in a greater 
        recovery for the creditors than is provided by such plan; and
            (7) the plan is consistent with the applicable Fiscal Plan 
        certified by the Oversight Board under title II.
    (c) Confirmation for Debtors With a Single Class of Claims.--If all 
of the requirements of section 314(b) of this title and section 1129(a) 
of title 11, United States Code, incorporated into this title by 
section 301 other than sections 1129(a)(8) and 1129(a)(10) are met with 
respect to a plan--
            (1) with respect to which all claims are substantially 
        similar under section 301(e) of this title;
            (2) that includes only one class of claims, which claims 
        are impaired claims; and
            (3) that was not accepted by such impaired class,
the court shall confirm the plan notwithstanding the requirements of 
such sections 1129(a)(8) and 1129(a)(10) of title 11, United States 
Code if the plan is fair and equitable and does not discriminate 
unfairly with respect to such impaired class.

SEC. 315. ROLE AND CAPACITY OF OVERSIGHT BOARD.

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

SEC. 316. COMPENSATION OF PROFESSIONALS.

    (a) After notice to the parties in interest and the United States 
Trustee and a hearing, the court may award to a professional person 
employed by the debtor (in the debtor's sole discretion), the Oversight 
Board (in the Oversight Board's sole discretion), a committee under 
section 1103 of title 11, United States Code, or a trustee appointed by 
the court under section 926 of title 11, United States Code--
            (1) reasonable compensation for actual, necessary services 
        rendered by the professional person, or attorney and by any 
        paraprofessional person employed by any such person; and
            (2) reimbursement for actual, necessary expenses.
    (b) The court may, on its own motion or on the motion of the United 
States Trustee or any other party in interest, award compensation that 
is less than the amount of compensation that is requested.
    (c) In determining the amount of reasonable compensation to be 
awarded to a professional person, the court shall consider the nature, 
the extent, and the value of such services, taking into account all 
relevant factors, including--
            (1) the time spent on such services;
            (2) the rates charged for such services;
            (3) whether the services were necessary to the 
        administration of, or beneficial at the time at which the 
        service was rendered toward the completion of, a case under 
        this chapter;
            (4) whether the services were performed within a reasonable 
        amount of time commensurate with the complexity, importance, 
        and nature of the problem, issue, or task addressed;
            (5) with respect to a professional person, whether the 
        person is board certified or otherwise has demonstrated skill 
        and experience in the restructuring field; and
            (6) whether the compensation is reasonable based on the 
        customary compensation charged by comparably skilled 
        practitioners in cases other than cases under this title or 
        title 11, United States Code.
    (d) The court shall not allow compensation for--
            (1) unnecessary duplication of services; or
            (2) services that were not--
                    (A) reasonably likely to benefit the debtor; or
                    (B) necessary to the administration of the case.
    (e) The court shall reduce the amount of compensation awarded under 
this section by the amount of any interim compensation awarded under 
section 317 of this title, and, if the amount of such interim 
compensation exceeds the amount of compensation awarded under this 
section, may order the return of the excess to the debtor.
    (f) Any compensation awarded for the preparation of a fee 
application shall be based on the level and skill reasonably required 
to prepare the application.

SEC. 317. INTERIM COMPENSATION.

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

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. RULES OF CONSTRUCTION.

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

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 by striking paragraphs (2) through (4) and inserting 
the following:
    ``(2) In lieu of the rate prescribed by subsection (a)(1), the 
Governor of Puerto Rico, subject to the approval of the Financial 
Oversight and Management Board established pursuant to section 101 of 
the Puerto Rico Oversight, Management, and Economic Stability Act, may 
designate a time period not to exceed four years during which employers 
in Puerto Rico may pay employees who are initially employed after the 
date of enactment of such Act a wage which is not less than the wage 
described in paragraph (1). Notwithstanding the time period designated, 
such wage shall not continue in effect after such Board terminates in 
accordance with section 209 of such Act.
    ``(3) No employer may take any action to displace employees 
(including partial displacements such as reduction in hours, wages, or 
employment benefits) for purposes of hiring individuals at the wage 
authorized in paragraph (1) or (2).
    ``(4) Any employer who violates this subsection shall be considered 
to have violated section 15(a)(3) (29 U.S.C. 215(a)(3)).
    ``(5) This subsection shall only apply to an employee who has not 
attained the age of 20 years, except in the case of the wage applicable 
in Puerto Rico, 25 years, until such time as the Board described in 
paragraph (2) terminates in accordance with section 209 of the Act 
described in such paragraph.''.

SEC. 404. APPLICATION OF REGULATION TO PUERTO RICO.

    (a) Special Rule.--The regulations proposed by the Secretary of 
Labor relating to exemptions regarding the rates of pay for executive, 
administrative, professional, outside sales, and computer employees, 
and published in a notice in the Federal Register on July 6, 2015, and 
any final regulations issued related to such notice, shall have no 
force or effect in the Commonwealth of Puerto Rico until--
            (1) the Comptroller General of the United States completes 
        the assessment and transmits the report required under 
        subsection (b); and
            (2) the Secretary of Labor, taking into account the 
        assessment and report of the Comptroller General, provides a 
        written determination to Congress that applying such rule to 
        Puerto Rico would not have a negative impact on the economy of 
        Puerto Rico.
    (b) Assessment and Report.--Not later than two years after the date 
of enactment of this Act, the Comptroller General shall examine the 
economic conditions in Puerto Rico and shall transmit a report to 
Congress assessing the impact of applying the regulations described in 
subsection (a) to Puerto Rico, taking into consideration regional, 
metropolitan, and non-metropolitan salary and cost-of-living 
differences.
    (c) Sense of Congress.--It is the sense of Congress that--
            (1) the Bureau of the Census should conduct a study to 
        determine the feasibility of expanding data collection to 
        include Puerto Rico and the other United States territories in 
        the Current Population Survey, which is jointly administered by 
        the Bureau of the Census and the Bureau of Labor Statistics, 
        and which is the primary source of labor force statistics for 
        the population of the United States; and
            (2) if necessary, the Bureau of the Census should request 
        the funding required to conduct this feasibility study as part 
        of its budget submission to Congress for fiscal year 2018.

SEC. 405. AUTOMATIC STAY UPON ENACTMENT.

    (a) Definitions.--In this section:
            (1) Liability.--The term ``Liability'' means a bond, loan, 
        letter of credit, other borrowing title, obligation of 
        insurance, or other financial indebtedness for borrowed money, 
        including rights, entitlements, or obligations whether such 
        rights, entitlements, or obligations arise from contract, 
        statute, or any other source of law related to such a bond, 
        loan, letter of credit, other borrowing title, obligation of 
        insurance, or other financial indebtedness in physical or 
        dematerialized form, of which--
                    (A) the issuer, obligor, or guarantor is the 
                Government of Puerto Rico; and
                    (B) the date of issuance or incurrence precedes the 
                date of enactment of this Act.
            (2) Liability claim.--The term ``Liability Claim'' means, 
        as it relates to a Liability--
                    (A) right to payment, whether or not such right is 
                reduced to judgment, liquidated, unliquidated, fixed, 
                contingent, matured, unmatured, disputed, undisputed, 
                legal, equitable, secured, or unsecured; or
                    (B) right to an equitable remedy for breach of 
                performance if such breach gives rise to a right to 
                payment, whether or not such right to an equitable 
                remedy is reduced to judgment, fixed, contingent, 
                matured, unmatured, disputed, undisputed, secured, or 
                unsecured.
    (b) In General.--Except as provided in subsection (c) of this 
section, the establishment of an Oversight Board for Puerto Rico (i.e., 
the enactment of this Act) in accordance with section 101 operates with 
respect to a Liability as a stay, applicable to all entities (as such 
term is defined in section 101 of title 11, United States Code), of--
            (1) the commencement or continuation, including the 
        issuance or employment of process, of a judicial, 
        administrative, or other action or proceeding against the 
        Government of Puerto Rico that was or could have been commenced 
        before the enactment of this Act, or to recover a Liability 
        Claim against the Government of Puerto Rico that arose before 
        the enactment of this Act;
            (2) the enforcement, against the Government of Puerto Rico 
        or against property of the Government of Puerto Rico, of a 
        judgment obtained before the enactment of this Act;
            (3) any act to obtain possession of property of the 
        Government of Puerto Rico or of property from the Government of 
        Puerto Rico or to exercise control over property of the 
        Government of Puerto Rico;
            (4) any act to create, perfect, or enforce any lien against 
        property of the Government of Puerto Rico;
            (5) any act to create, perfect, or enforce against property 
        of the Government of Puerto Rico any lien to the extent that 
        such lien secures a Liability Claim that arose before the 
        enactment of this Act;
            (6) any act to collect, assess, or recover a Liability 
        Claim against the Government of Puerto Rico that arose before 
        the enactment of this Act; and
            (7) the setoff of any debt owing to the Government of 
        Puerto Rico that arose before the enactment of this Act against 
        any Liability Claim against the Government of Puerto Rico.
    (c) Stay Not Operable.--The establishment of an Oversight Board for 
Puerto Rico in accordance with section 101 does not operate as a stay--
            (1) solely under subsection (b)(1) of this section, of the 
        continuation of, including the issuance or employment of 
        process, of a judicial, administrative, or other action or 
        proceeding against the Government of Puerto Rico that was 
        commenced on or before December 18, 2015; or
            (2) of the commencement or continuation of an action or 
        proceeding by a governmental unit to enforce such governmental 
        unit's or organization's police and regulatory power, including 
        the enforcement of a judgment other than a money judgment, 
        obtained in an action or proceeding by the governmental unit to 
        enforce such governmental unit's or organization's police or 
        regulatory power.
    (d) Continuation of Stay.--Except as provided in subsections (e), 
(f), and (g) the stay under subsection (b) continues until the earlier 
of--
            (1) the later of--
                    (A) the later of--
                            (i) February 15, 2017; or
                            (ii) six months after the establishment of 
                        an Oversight Board for Puerto Rico as 
                        established by section 101(b);
                    (B) the date that is 75 days after the date in 
                subparagraph (A) if the Oversight Board delivers a 
                certification to the Governor that, in the Oversight 
                Board's sole discretion, an additional 75 days are 
                needed to seek to complete a voluntary process under 
                title VI of this Act with respect to the government of 
                the Commonwealth of Puerto Rico or any of its 
                territorial instrumentalities; or
                    (C) the date that is 60 days after the date in 
                subparagraph (A) if the district court to which an 
                application has been submitted under subparagraph 
                601(m)(1)(D) of this Act determines, in the exercise of 
                the court's equitable powers, that an additional 60 
                days are needed to complete a voluntary process under 
                title VI of this Act with respect to the government of 
                the Commonwealth of Puerto Rico or any of its 
                territorial instrumentalities; or
            (2) with respect to the government of the Commonwealth of 
        Puerto Rico or any of its territorial instrumentalities, the 
        date on which a case is filed by or on behalf of the government 
        of the Commonwealth of Puerto Rico or any of its territorial 
        instrumentalities, as applicable, under title III.
    (e) Jurisdiction, Relief From Stay.--
            (1) The United States District Court for the District of 
        Puerto Rico shall have original and exclusive jurisdiction of 
        any civil actions arising under or related to this section.
            (2) On motion of or action filed by a party in interest and 
        after notice and a hearing, the United States District Court 
        for the District of Puerto Rico, for cause shown, shall grant 
        relief from the stay provided under subsection (b) of this 
        section.
    (f) Termination of Stay; Hearing.--Forty-five days after a request 
under subsection (e)(2) for relief from the stay of any act against 
property of the Government of Puerto Rico under subsection (b), such 
stay is terminated with respect to the party in interest making such 
request, unless the court, after notice and a hearing, orders such stay 
continued in effect pending the conclusion of, or as a result of, a 
final hearing and determination under subsection (e)(2). A hearing 
under this subsection may be a preliminary hearing, or may be 
consolidated with the final hearing under subsection (e)(2). The court 
shall order such stay continued in effect pending the conclusion of the 
final hearing under subsection (e)(2) if there is a reasonable 
likelihood that the party opposing relief from such stay will prevail 
at the conclusion of such final hearing. If the hearing under this 
subsection is a preliminary hearing, then such final hearing shall be 
concluded not later than thirty days after the conclusion of such 
preliminary hearing, unless the thirty-day period is extended with the 
consent of the parties in interest or for a specific time which the 
court finds is required by compelling circumstances.
    (g) Relief To Prevent Irreparable Damage.--Upon request of a party 
in interest, the court, with or without a hearing, shall grant such 
relief from the stay provided under subsection (b) as is necessary to 
prevent irreparable damage to the interest of an entity in property, if 
such interest will suffer such damage before there is an opportunity 
for notice and a hearing under subsection (e) or (f).
    (h) Act in Violation of Stay Is Void.--Any order, judgment, or 
decree entered in violation of this section and any act taken in 
violation of this section is void, and shall have no force or effect, 
and any person found to violate this section may be liable for damages, 
costs, and attorneys' fees incurred in defending any action taken in 
violation of this section, and the Oversight Board or the Government of 
Puerto Rico may seek an order from the court enforcing the provisions 
of this section.
    (i) Government of Puerto Rico.--For purposes of this section, the 
term ``Government of Puerto Rico'', in addition to the definition set 
forth in section 5(11) of this Act, shall include--
            (1) the individuals, including elected and appointed 
        officials, directors, officers of and employees acting in their 
        official capacity on behalf of the Government of Puerto Rico; 
        and
            (2) the Oversight Board, including the directors and 
        officers of and employees acting in their official capacity on 
        behalf of the Oversight Board.
    (j) No Default Under Existing Contracts.--
            (1) Notwithstanding any contractual provision or applicable 
        law to the contrary and so long as a stay under this section is 
        in effect, the holder of a Liability Claim or any other claim 
        (as such term is defined in section 101 of title 11, United 
        States Code) may not exercise or continue to exercise any 
        remedy under a contract or applicable law in respect to the 
        Government of Puerto Rico or any of its property--
                    (A) that is conditioned upon the financial 
                condition of, or the commencement of a restructuring, 
                insolvency, bankruptcy, or other proceeding (or a 
                similar or analogous process) by, the Government of 
                Puerto Rico, including a default or an event of default 
                thereunder; or
                    (B) with respect to Liability Claims--
                            (i) for the non-payment of principal or 
                        interest; or
                            (ii) for the breach of any condition or 
                        covenant.
            (2) The term ``remedy'' as used in paragraph (1) shall be 
        interpreted broadly, and shall include any right existing in 
        law or contract, including any right to--
                    (A) setoff;
                    (B) apply or appropriate funds;
                    (C) seek the appointment of a custodian (as such 
                term is defined in section 101(11) of title 11, United 
                States Code);
                    (D) seek to raise rates; or
                    (E) exercise control over property of the 
                Government of Puerto Rico.
            (3) Notwithstanding any contractual provision or applicable 
        law to the contrary and so long as a stay under this section is 
        in effect, a contract to which the Government of Puerto Rico is 
        a party may not be terminated or modified, and any right or 
        obligation under such contract may not be terminated or 
        modified, solely because of a provision in such contract is 
        conditioned on--
                    (A) the insolvency or financial condition of the 
                Government of Puerto Rico at any time prior to the 
                enactment of this Act;
                    (B) the adoption of a resolution or establishment 
                of an Oversight Board pursuant to section 101 of this 
                Act; or
                    (C) a default under a separate contract that is due 
                to, triggered by, or a result of the occurrence of the 
                events or matters in paragraph (1)(B).
            (4) Notwithstanding any contractual provision to the 
        contrary and so long as a stay under this section is in effect, 
        a counterparty to a contract with the Government of Puerto Rico 
        for the provision of goods and services shall, unless the 
        Government of Puerto Rico agrees to the contrary in writing, 
        continue to perform all obligations under, and comply with the 
        terms of, such contract, provided that the Government of Puerto 
        Rico is not in default under such contract other than as a 
        result of a condition specified in paragraph (3).
    (k) Effect.--This section does not discharge an obligation of the 
Government of Puerto Rico or release, invalidate, or impair any 
security interest or lien securing such obligation. This section does 
not impair or affect the implementation of any restructuring support 
agreement executed by the Government of Puerto Rico to be implemented 
pursuant to Puerto Rico law specifically enacted for that purpose prior 
to the enactment of this Act or the obligation of the Government of 
Puerto Rico to proceed in good faith as set forth in any such 
agreement.
    (l) Payments on Liabilities.--Nothing in this section shall be 
construed to prohibit the Government of Puerto Rico from making any 
payment on any Liability when such payment becomes due during the term 
of the stay, and to the extent the Oversight Board, in its sole 
discretion, determines it is feasible, the Government of Puerto Rico 
shall make interest payments on outstanding indebtedness when such 
payments become due during the length of the stay.
    (m) Findings.--Congress finds the following:
            (1) A combination of severe economic decline, and, at 
        times, accumulated operating deficits, lack of financial 
        transparency, management inefficiencies, and excessive 
        borrowing has created a fiscal emergency in Puerto Rico.
            (2) As a result of its fiscal emergency, the Government of 
        Puerto Rico has been unable to provide its citizens with 
        effective services.
            (3) The current fiscal emergency has also affected the 
        long-term economic stability of Puerto Rico by contributing to 
        the accelerated outmigration of residents and businesses.
            (4) A comprehensive approach to fiscal, management, and 
        structural problems and adjustments that exempts no part of the 
        Government of Puerto Rico is necessary, involving independent 
        oversight and a Federal statutory authority for the Government 
        of Puerto Rico to restructure debts in a fair and orderly 
        process.
            (5) Additionally, an immediate--but temporary--stay is 
        essential to stabilize the region for the purposes of resolving 
        this territorial crisis.
                    (A) The stay advances the best interests common to 
                all stakeholders, including but not limited to a 
                functioning independent Oversight Board created 
                pursuant to this Act to determine whether to appear or 
                intervene on behalf of the Government of Puerto Rico in 
                any litigation that may have been commenced prior to 
                the effectiveness or upon expiration of the stay.
                    (B) The stay is limited in nature and narrowly 
                tailored to achieve the purposes of this Act, including 
                to ensure all creditors have a fair opportunity to 
                consensually renegotiate terms of repayment based on 
                accurate financial information that is reviewed by an 
                independent authority or, at a minimum, receive a 
                recovery from the Government of Puerto Rico equal to 
                their best possible outcome absent the provisions of 
                this Act.
            (6) Finally, the ability of the Government of Puerto Rico 
        to obtain funds from capital markets in the future will be 
        severely diminished without congressional action to restore its 
        financial accountability and stability.
    (n) Purposes.--The purposes of this section are to--
            (1) provide the Government of Puerto Rico with the 
        resources and the tools it needs to address an immediate 
        existing and imminent crisis;
            (2) allow the Government of Puerto Rico a limited period of 
        time during which it can focus its resources on negotiating a 
        voluntary resolution with its creditors instead of defending 
        numerous, costly creditor lawsuits;
            (3) provide an oversight mechanism to assist the Government 
        of Puerto Rico in reforming its fiscal governance and support 
        the implementation of potential debt restructuring;
            (4) make available a Federal restructuring authority, if 
        necessary, to allow for an orderly adjustment of all of the 
        Government of Puerto Rico's liabilities; and
            (5) benefit the lives of 3.5 million American citizens 
        living in Puerto Rico by encouraging the Government of Puerto 
        Rico to resolve its longstanding fiscal governance issues and 
        return to economic growth.
    (o) Voting on Voluntary Agreements Not Stayed.--Notwithstanding any 
provision in this section to the contrary, nothing in this section 
shall prevent the holder of a Liability Claim from voting on or 
consenting to a proposed modification of such Liability Claim under 
title VI of this Act.

SEC. 406. PURCHASES BY TERRITORY GOVERNMENTS.

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

SEC. 407. PROTECTION FROM INTER-DEBTOR TRANSFERS.

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

SEC. 408. GAO REPORT ON SMALL BUSINESS ADMINISTRATION PROGRAMS IN 
              PUERTO RICO.

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

SEC. 409. CONGRESSIONAL TASK FORCE ON ECONOMIC GROWTH IN PUERTO RICO.

    (a) Establishment.--There is established within the legislative 
branch a Congressional Task Force on Economic Growth in Puerto Rico 
(hereinafter referred to as the ``Task Force'').
    (b) Membership.--The Task Force shall be composed of eight members 
as follows:
            (1) One member of the House of Representatives, who shall 
        be appointed by the Speaker of the House of Representatives, in 
        coordination with the Chairman of the Committee on Natural 
        Resources of the House of Representatives.
            (2) One member of the House of Representatives, who shall 
        be appointed by the Speaker of the House of Representatives, in 
        coordination with the Chairman of the Committee on Ways and 
        Means of the House of Representatives.
            (3) One member of the House of Representatives, who shall 
        be appointed by the Minority Leader of the House of 
        Representatives, in coordination with the ranking minority 
        member of the Committee on Natural Resources of the House of 
        Representatives.
            (4) One member of the House of Representatives, who shall 
        be appointed by the Minority Leader of the House of 
        Representatives, in coordination with the ranking minority 
        member of the Committee on Ways and Means of the House of 
        Representatives.
            (5) One member of the Senate, who shall be appointed by the 
        Majority Leader of the Senate, in coordination with the 
        Chairman of the Committee on Energy and Natural Resources of 
        the Senate.
            (6) One member of the Senate, who shall be appointed by the 
        Majority Leader of the Senate, in coordination with the 
        Chairman of the Committee on Finance of the Senate.
            (7) One member of the Senate, who shall be appointed by the 
        Minority Leader of the Senate, in coordination with the ranking 
        minority member of the Committee on Energy and Natural 
        Resources of the Senate.
            (8) One member of the Senate, who shall be appointed by the 
        Minority Leader of the Senate, in coordination with the ranking 
        minority member of the Committee on Finance of the Senate.
    (c) Deadline for Appointment.--All appointments to the Task Force 
shall be made not later than 15 days after the date of enactment of 
this Act.
    (d) Chair.--The Speaker shall designate one Member to serve as 
chair of the Task Force.
    (e) Vacancies.--Any vacancy in the Task Force shall be filled in 
the same manner as the original appointment.
    (f) Status Update.--Between September 1, 2016, and September 15, 
2016, the Task Force shall provide a status update to the House and 
Senate that includes--
            (1) information the Task Force has collected; and
            (2) a discussion on matters the chairman of the Task Force 
        deems urgent for consideration by Congress.
    (g) Report.--Not later than December 31, 2016, the Task Force shall 
issue a report of its findings to the House and Senate regarding--
            (1) impediments in current Federal law and programs to 
        economic growth in Puerto Rico including equitable access to 
        Federal health care programs;
            (2) recommended changes to Federal law and programs that, 
        if adopted, would serve to spur sustainable long-term economic 
        growth, job creation, reduce child poverty, and attract 
        investment in Puerto Rico;
            (3) the economic effect of Administrative Order No. 346 of 
        the Department of Health of the Commonwealth of Puerto Rico 
        (relating to natural products, natural supplements, and dietary 
        supplements) or any successor or substantially similar order, 
        rule, or guidance of the Commonwealth of Puerto Rico; and
            (4) additional information the Task Force deems 
        appropriate.
    (h) Consensus Views.--To the greatest extent practicable, the 
report issued under subsection (f) shall reflect the shared views of 
all eight Members, except that the report may contain dissenting views.
    (i) Hearings and Sessions.--The Task Force may, for the purpose of 
carrying out this section, hold hearings, sit and act at times and 
places, take testimony, and receive evidence as the Task Force 
considers appropriate. If the Task Force holds hearings, at least one 
such hearing must be held in Puerto Rico.
    (j) Stakeholder Participation.--In carrying out its duties, the 
Task Force shall consult with the Puerto Rico Legislative Assembly, the 
Puerto Rico Department of Economic Development and Commerce, and the 
private sector of Puerto Rico.
    (k) Resources.--The Task Force shall carry out its duties by 
utilizing existing facilities, services, and staff of the House of 
Representatives and Senate, except that no additional funds are 
authorized to be appropriated to carry out this section.
    (l) Termination.--The Task Force shall terminate upon issuing the 
report required under subsection (f).

SEC. 410. REPORT.

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

SEC. 411. REPORT ON TERRITORIAL DEBT.

    (a) Report Required.--Not later than one year after the date of the 
enactment of this Act, and thereafter not less than once every two 
years, the Comptroller General of the United States shall submit to 
Congress a report on the public debt of each territory, including--
            (1) the historical levels of each territory's public debt, 
        current amount and composition of each territory's public debt, 
        and future projections of each territory's public debt;
            (2) the historical levels of each territory's revenue, 
        current amount and composition of each territory's revenue, and 
        future projections of each territory's revenue;
            (3) the drivers and composition of each territory's public 
        debt;
            (4) the effect of Federal laws, mandates, rules, and 
        regulations on each territory's public debt; and
            (5) the ability of each territory to repay it's public 
        debt.
    (b) Materials.--The government of each territory shall make 
available to the Comptroller General of the United States all materials 
necessary to carry out this section.

SEC. 412. EXPANSION OF HUBZONES IN PUERTO RICO.

    (a)  In General.--
            (1) Section 3(p)(4)(A) of the Small Business Act (15 U.S.C. 
        632(p)(4)(A)) is amended to read as follows:
                    ``(A) Qualified census tract.--
                            ``(i) In general.--The term `qualified 
                        census tract' has the meaning given that term 
                        in section 42(d)(5)(B)(ii) of the Internal 
                        Revenue Code of 1986.
                            ``(ii) Exception.--For any metropolitan 
                        statistical area in the Commonwealth of Puerto 
                        Rico, the term `qualified census tract' has the 
                        meaning given that term in section 
                        42(d)(5)(B)(ii) of the Internal Revenue Code of 
                        1986 as applied without regard to subclause 
                        (II) of such section, except that this clause 
                        shall only apply--
                                    ``(I) 10 years after the date that 
                                the Administrator implements this 
                                clause, or
                                    ``(II) the date on which the 
                                Financial Oversight and Management 
                                Board for the Commonwealth of Puerto 
                                Rico created by the Puerto Rico 
                                Oversight, Management, and Economic 
                                Stability Act ceases to exist,
                        whichever event occurs first.''.
            (2) Regulations.--The Administrator of the Small Business 
        Administration shall issue regulations to implement the 
        amendment made by paragraph (1) not later than 90 days after 
        the date of the enactment of this Act.
    (b) Improving Oversight.--
            (1) Guidance.--Not later than 270 days after the date of 
        the enactment of this Act, the Administrator of the Small 
        Business Administration shall develop and implement criteria 
        and guidance on using a risk-based approach to requesting and 
        verifying information from entities applying to be designated 
        or recertified as qualified HUBZone small business concerns (as 
        defined in section 3(p)(5) of the Small Business Act (15 U.S.C. 
        632(p)(5))).
            (2) Assessment.--Not later 1 year after the date on which 
        the criteria and guidance described in paragraph (1) is 
        implemented, the Comptroller General of the United States shall 
        begin an assessment of such criteria and guidance. Not later 
        than 6 months after beginning such an assessment, the 
        Comptroller General shall submit a report to the Committee on 
        Small Business and Entrepreneurship of the Senate and the 
        Committee on Small Business of the House of Representatives 
        that includes--
                    (A) an assessment of the criteria and guidance 
                issued by the Administrator of the Small Business 
                Administration in accordance with paragraph (1);
                    (B) an assessment of the implementation of the 
                criteria and guidance issued by issued by the 
                Administrator of the Small Business Administration in 
                accordance with paragraph (1);
                    (C) an assessment as to whether these measures have 
                successfully ensured that only qualified HUBZone small 
                business concerns are participating in the HUBZone 
                program under section 31 of the Small Business Act (15 
                U.S.C. 657a);
                    (D) an assessment as to whether the reforms made by 
                the criteria and guidance implemented under paragraph 
                (1) have resulted in job creation in the Commonwealth 
                of Puerto Rico; and
                    (E) recommendations on how to improve controls in 
                the HUBZone program.

SEC. 413. DETERMINATION ON DEBT.

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

           TITLE V--PUERTO RICO INFRASTRUCTURE REVITALIZATION

SEC. 501. 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 Puerto Rico Act 416-
        2004 (12 L.P.R.A. 8002a).
            (7) Expedited permitting process.--The term ``Expedited 
        Permitting Process'' means a Puerto Rico Agency's alternate 
        procedures, conditions, and terms mirroring those established 
        under Act 76 (3 L.P.R.A. 1932) and pursuant to this title shall 
        not apply to any Federal law, statute, or requirement.
            (8) Governor.--The term ``Governor'' means the Governor of 
        Puerto Rico.
            (9) Interagency environmental subcommittee.--The term 
        ``Interagency Environmental Subcommittee'' means the 
        Interagency Subcommittee on Expedited Environmental Regulations 
        as further described by section 504.
            (10) Legislature.--The term ``Legislature'' means the 
        Legislature of Puerto Rico.
            (11) Planning board.--The term ``Planning Board'' means the 
        Puerto Rico Planning Board, a board within the executive branch 
        of the Government of Puerto Rico established by Puerto Rico Act 
        75-1975 (23 L.P.R.A. 62 et seq.).
            (12) Project sponsor.--The term ``Project Sponsor'' means a 
        Puerto Rico Agency or private party proposing the development 
        of an existing, ongoing, or new infrastructure project or 
        Energy Project.
            (13) Puerto rico agency or agencies.--The terms ``Puerto 
        Rico Agency'' or ``Puerto Rico Agencies'' means any board, 
        body, board of examiners, public corporation, commission, 
        independent office, division, administration, bureau, 
        department, authority, official, person, entity, municipality, 
        or any instrumentality of Puerto Rico, or an administrative 
        body authorized by law to perform duties of regulating, 
        investigating, or that may issue a decision, or with the power 
        to issue licenses, certificates, permits, concessions, 
        accreditations, privileges, franchises, except the Senate and 
        the House of Representatives of the Legislature and the 
        judicial branch.
            (14) Puerto rico electric power authority.--The term 
        ``Puerto Rico Electric Power Authority'' means the Puerto Rico 
        Electric Power Authority established by Puerto Rico Act 83-
        1941.

SEC. 502. 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 and within 60 days of the appointment of 
                the full membership of the Oversight Board, the 
                Oversight Board shall submit to the Governor no less 
                than three nominees for appointment.
                    (B) In consultation with the Oversight Board, not 
                later than 10 days after receiving the nominations 
                under subparagraph (A), the Governor shall appoint one 
                of the nominees as the Revitalization Coordinator. Such 
                appointment shall be effective immediately.
                    (C) If the Governor fails to select a 
                Revitalization Coordinator, the Oversight Board shall, 
                by majority vote, appoint a Revitalization Coordinator 
                from the list of nominees provided under paragraph (A).
            (2) Qualifications.--In selecting nominees under paragraph 
        (1)(A), the Oversight Board shall only nominate persons who--
                    (A) have substantial knowledge and expertise in the 
                planning, predevelopment, financing, development, 
                operations, engineering, or market participation of 
                infrastructure projects, provided that stronger 
                consideration may be given to candidates who have 
                experience with Energy Projects and the laws and 
                regulations of Puerto Rico that may be subject to an 
                Expedited Permitting Process;
                    (B) does not currently provide goods or services to 
                the government of Puerto Rico (and, as applicable, is 
                not the spouse, parent, child, or sibling of a person 
                who provides or has provided goods and services to the 
                government of Puerto Rico in the preceding 3 calendar 
                years); and
                    (C) shall not be an officer, employee of, or former 
                officer or employee of the government of Puerto Rico in 
                the preceding 3 calendar years.
            (3) Compensation.--The Revitalization Coordinator shall be 
        compensated at an annual rate determined by the Oversight Board 
        sufficient in the judgment of the Oversight Board to obtain the 
        services of a person with the skills and experience required to 
        discharge the duties of the position, but such compensation 
        shall not exceed the annual salary of the Executive Director.
    (c) Assignment of Personnel.--The Executive Director of the 
Oversight Board may assign Oversight Board personnel to assist the 
Revitalization Coordinator.
    (d) Removal.--
            (1) In general.--The Revitalization Coordinator may be 
        removed for any reason, in the Oversight Board's discretion.
            (2) Termination of position.--Upon the termination of the 
        Oversight Board pursuant to section 209 of this Act, the 
        position of the Revitalization Coordinator shall terminate.

SEC. 503. 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) the cost of the project and amount of Puerto 
                Rico government funds, if any, necessary to complete 
                and maintain the project;
                    (D) the environmental and economic benefits 
                provided by the project, including the number of jobs 
                to be created that will be held by residents of Puerto 
                Rico and the expected economic impact, including the 
                impact on ratepayers, if applicable;
                    (E) the status of the project if it is existing or 
                ongoing; and
                    (F) in addition to the requirements found in 
                subparagraphs (A) through (E), the Revitalization 
                Coordinator may require such submission to include any 
                or all of the following criteria that assess how the 
                project will--
                            (i) reduce reliance on oil for electric 
                        generation in Puerto Rico;
                            (ii) improve performance of energy 
                        infrastructure and overall energy efficiency;
                            (iii) expedite the diversification and 
                        conversion of fuel sources for electric 
                        generation from oil to natural gas and 
                        renewables in Puerto Rico as defined under 
                        applicable Puerto Rico laws;
                            (iv) promote the development and 
                        utilization of energy sources found on Puerto 
                        Rico;
                            (v) contribute to transitioning to 
                        privatized generation capacities in Puerto 
                        Rico;
                            (vi) support the Energy Commission of 
                        Puerto Rico in achievement of its goal of 
                        reducing energy costs and ensuring affordable 
                        energy rates for consumers and business; or
                            (vii) achieve in whole or in part the 
                        recommendations, if feasible, of the study in 
                        section 505(d) of this title to the extent such 
                        study is completed and not inconsistent with 
                        studies or plans otherwise required under 
                        Puerto Rico laws.
            (2) 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) Expedited permitting process.--
                    (A) Submission of expedited permitting process.--
                Not later than 20 days after receiving a project 
                submission, each Puerto Rico Agency identified in 
                paragraph (1) shall submit to the Revitalization 
                Coordinator the Agency's Expedited Permitting Process.
                    (B) Failure to provide expedited permitting 
                process.--If a Puerto Rico Agency fails to provide an 
                Expedited Permitting Process within 20 days of 
                receiving a project submission, the Revitalization 
                Coordinator shall consult with the Governor to develop 
                within 20 days an Expedited Permitting Process for the 
                Agency.
                    (C) Implementation and prioritization.--The 
                Revitalization Coordinator shall require Puerto Rico 
                Agencies to implement the Expedited Permitting Process 
                for Critical Projects. Critical Projects shall be 
                prioritized to the maximum extent possible in each 
                Puerto Rico Agency regardless of any agreements 
                transferring or delegating permitting authority to any 
                other Territorial Instrumentality or municipality.
    (b) Critical Project Report.--
            (1) In general.--For each submitted project, the 
        Revitalization Coordinator in consultation with the Governor 
        and relevant Puerto Rico Agencies identified in subsection 
        (a)(2) shall develop a Critical Project Report within 60 days 
        of the project submission, which shall include:
                    (A) An assessment of how well the project meets the 
                criteria in subsection (a)(1).
                    (B) A recommendation by the Governor whether the 
                project should be considered a Critical Project. If the 
                Governor fails to provide a recommendation during the 
                development of the Critical Project Report, the failure 
                shall constitute a concurrence with the Revitalization 
                Coordinator's recommendation in subparagraph (E).
                    (C) In the case of a project that may affect the 
                implementation of Land-Use Plans, as defined by Puerto 
                Rico Act 550-2004, a determination by the Planning 
                Board will be required within the 60-day timeframe. If 
                the Planning Board determines such project will be 
                inconsistent with relevant Land-Use Plans, then the 
                project will be deemed ineligible for Critical Project 
                designation.
                    (D) In the case of an Energy Project that will 
                connect with the Puerto Rico Electric Power Authority's 
                transmission or distribution facilities, a 
                recommendation by the Energy Commission of Puerto Rico, 
                if the Energy Commission determines such Energy Project 
                will affect an approved Integrated Resource Plan, as 
                defined under Puerto Rico Act 54-2014. If the Energy 
                Commission determines the Energy Project will adversely 
                affect an approved Integrated Resource Plan, then the 
                Energy Commission shall provide the reasons for such 
                determination and the Energy Project shall be 
                ineligible for Critical Project designation, provided 
                that such determination must be made during the 60-day 
                timeframe for the development of the Critical Project 
                Report.
                    (E) A recommendation by the Revitalization 
                Coordinator whether the project should be considered a 
                Critical Project.
            (2) Public involvement.--Immediately following the 
        completion of the Critical Project Report, the Revitalization 
        Coordinator shall make such Critical Project Report public and 
        allow a period of 30 days for the submission of comments by 
        residents of Puerto Rico specifically on matters relating to 
        the designation of a project as a Critical Project. The 
        Revitalization Coordinator shall respond to the comments within 
        30 days of closing the coming period and make the responses 
        publicly available.
            (3) Submission to oversight board.--Not later than 5 days 
        after the Revitalization Coordinator has responded to the 
        comments under paragraph (2), the Revitalization Coordinator 
        shall submit the Critical Project Report to the Oversight 
        Board.
    (c) Action by the Oversight Board.--Not later than 30 days after 
receiving the Critical Project Report, the Oversight Board, by majority 
vote, shall approve or disapprove the project as a Critical Project, if 
the Oversight Board--
            (1) approves the project, the project shall be deemed a 
        Critical Project; and
            (2) disapproves the project, the Oversight Board shall 
        submit to the Revitalization Coordinator in writing the reasons 
        for disapproval.

SEC. 504. 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)(3).
            (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) Length of Expedited Permitting Process.--With respect to a 
Puerto Rico Agency's activities related only to a Critical Project, 
such Puerto Rico Agency shall operate as if the Governor has declared 
an emergency pursuant to section 2 of Act 76 (3 L.P.R.A. 1932). Section 
12 of Act 76 (3 L.P.R.A. 1942) shall not be applicable to Critical 
Projects. Furthermore, any transactions, processes, projects, works, or 
programs essential to the completion of a Critical Project shall 
continue to be processed and completed under such Expedited Permitting 
Process regardless of the termination of the Oversight Board under 
section 209.
    (c) Expedited Permitting Process Compliance.--
            (1) Written notice.--A Critical Project Sponsor may in 
        writing notify the Oversight Board of the failure of a Puerto 
        Rico Agency or the Revitalization Coordinator to adhere to the 
        Expedited Permitting Process.
            (2) Finding of failure.--If the Oversight Board finds 
        either the Puerto Rico Agency or Revitalization Coordinator has 
        failed to adhere to the Expedited Permitting Process, the 
        Oversight Board shall direct the offending party to comply with 
        the Expedited Permitting Process. The Oversight Board may take 
        such enforcement action as necessary as provided by section 
        104(l).
    (d) Review of Legislature Acts.--
            (1) Submission of acts to oversight board.--Pursuant to 
        section 204(a), the Governor shall submit to the Oversight 
        Board any law duly enacted during any fiscal year in which the 
        Oversight Board is in operation that may affect the Expedited 
        Permitting Process.
            (2) Finding of oversight board.--Upon receipt of a law 
        under paragraph (1), the Oversight Board shall promptly review 
        whether the law would adversely impact the Expedited Permitting 
        Process and, upon such a finding, the Oversight Board may deem 
        such law to be significantly inconsistent with the applicable 
        Fiscal Plan.
    (e) Establishment of Certain Terms and Conditions.--No Puerto Rico 
Agency may include in any certificate, right-of-way, permit, lease, or 
other authorization issued for a Critical Project any term or condition 
that may be permitted, but is not required, by any applicable Puerto 
Rico law, if the Revitalization Coordinator determines the term or 
condition would prevent or impair the expeditious construction, 
operation, or expansion of the Critical Project. The Revitalization 
Coordinator may request a Puerto Rico Agency to include in any 
certificate, right-of-way, permit, lease, or other authorization, a 
term or condition that may be permitted in accordance with applicable 
laws if the Revitalization Coordinator determines such inclusion would 
support the expeditious construction, operation, or expansion of any 
Critical Project.
    (f) 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 in 
Puerto Rico, shall name a Point of Contact who will serve as that 
agency's liaison with the Revitalization Coordinator.
    (b) Federal Grants and Loans.--For each Critical Project with a 
pending or potential Federal grant, loan, or loan guarantee 
application, the Revitalization Coordinator and the relevant Point of 
Contact shall cooperate with each other to ensure expeditious review of 
such application.
    (c) Expedited Reviews and Actions of Federal Agencies.--All reviews 
conducted and actions taken by any Federal agency relating to a 
Critical Project shall be expedited in a manner consistent with 
completion of the necessary reviews and approvals by the deadlines 
under the Expedited Permitting Process, but in no way shall the 
deadlines established through the Expedited Permitting Process be 
binding on any Federal agency.
    (d) Transfer of Study of Electric Rates.--Section 9 of the 
Consolidated and Further Continuing Appropriations Act, 2015 (48 U.S.C. 
1492a) is amended--
            (1) in subsection (a)(5), by inserting ``, except that, 
        with respect to Puerto Rico, the term means, the Secretary of 
        Energy'' after ``Secretary of the Interior''; and
            (2) in subsection (b)--
                    (A) by inserting ``(except in the case of Puerto 
                Rico, in which case not later than 270 days after the 
                date of enactment of the Puerto Rico Oversight, 
                Management, and Economic Stability Act)'' after ``of 
                this Act''; and
                    (B) by inserting ``(except in the case of Puerto 
                Rico)'' after ``Empowering Insular Communities 
                activity''.

SEC. 506. 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 (k).
            (4) Capital appreciation bond.--The term ``Capital 
        Appreciation Bond'' means a Bond that does not pay interest on 
        a current basis, but for which interest amounts are added to 
        principal over time as specified in the relevant offering 
        materials for such Bond, including that the accreted interest 
        amount added to principal increases daily.
            (5) Convertible capital appreciation bond.--The term 
        ``Convertible Capital Appreciation Bond'' means a Bond that 
        does not pay interest on a current basis, but for which 
        interest amounts are added to principal over time as specified 
        in the relevant offering materials and which converts to a 
        current pay bond on a future date.
            (6) Information agent.--The term ``Information Agent'' 
        means an information agent appointed in accordance with 
        subsection (l).
            (7) Insured bond.--The term ``Insured Bond'' means a bond 
        subject to a financial guarantee or similar insurance contract, 
        policy or surety issued by a monoline insurer.
            (8) Issuer.--The term ``Issuer'' means, as applicable, the 
        Territory Government Issuer or an Authorized Territorial 
        Instrumentality that has issued or guaranteed at least one Bond 
        that is Outstanding.
            (9) Modification.--The term ``Modification'' means any 
        modification, amendment, supplement or waiver affecting one or 
        more series of Bonds, including those effected by way of 
        exchange, repurchase, conversion, or substitution.
            (10) Outstanding.--The term ``Outstanding,'' in the context 
        of the principal amount of Bonds, shall be determined in 
        accordance with subsection (b).
            (11) Outstanding principal.--The term ``Outstanding 
        Principal'' means--
                    (A) for a Bond that is not a Capital Appreciation 
                Bond or a Convertible Capital Appreciation Bond, the 
                outstanding principal amount of such Bond; and
                    (B) for a Bond that is a Capital Appreciation Bond 
                or a Convertible Capital Appreciation Bond, the current 
                accreted value of such Capital Appreciation Bond or a 
                Convertible Capital Appreciation Bond, as applicable.
            (12) Pool.--The term ``Pool'' means a pool established in 
        accordance with subsection (d).
            (13) Qualifying modification.--The term ``Qualifying 
        Modification'' means a Modification proposed in accordance with 
        subsection (g).
            (14) Secured pool.--The term ``Secured Pool'' means a Pool 
        established in accordance with subsection (d) consisting only 
        of Bonds that are secured by a lien on property, provided that 
        the inclusion of a Bond Claim in such Pool shall not in any way 
        limit or prejudice the right of the Issuer, the Administrative 
        Supervisor, or any creditor to recharacterize or challenge such 
        Bond Claim, or any purported lien securing such Bond Claim, in 
        any other manner in any subsequent proceeding in the event a 
        proposed Qualifying Modification is not consummated.
            (15) Territory government issuer.--The term ``Territory 
        Government Issuer'' means the Government of Puerto Rico or such 
        covered territory for which an Oversight Board has been 
        established pursuant to section 101.
    (b) 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 Bonds that are secured 
        by a lien on property shall be a Secured Pool.
            (3) The Administrative Supervisor shall establish Pools 
        according to the following principles:
                    (A) For each Issuer that has issued multiple Bonds 
                that are distinguished by specific provisions governing 
                priority or security arrangements, including Bonds that 
                have been issued as general obligations of the 
                Territory Government Issuer to which the Territory 
                Government Issuer pledged the full or good faith, 
                credit, and taxing power of the Territory Government 
                Issuer, separate Pools shall be established 
                corresponding to the relative priority or security 
                arrangements of each holder of Bonds against each 
                Issuer, as applicable, provided, however, that the term 
                ``priority'' as used in this section shall not be 
                understood to mean differing payment or maturity dates.
                    (B) For each Issuer that has issued senior and 
                subordinated Bonds, separate Pools shall be established 
                for the senior and subordinated Bonds corresponding to 
                the relative priority or security arrangements.
                    (C) For each Issuer that has issued multiple Bonds, 
                for at least some of which a guarantee of repayment has 
                been provided by the Territory Government Issuer, 
                separate Pools shall be established for such guaranteed 
                and non-guaranteed Bonds.
                    (D) Subject to the other requirements contained in 
                this section, for each Issuer that has issued multiple 
                Bonds, for at least some of which a dedicated revenue 
                stream has been pledged for repayment, separate Pools 
                for such Issuer shall be established as follows--
                            (i) for each dedicated revenue stream that 
                        has been pledged for repayment, not less than 
                        one Secured Pool for Bonds for which such 
                        revenue stream has been pledged, and separate 
                        Secured Pools shall be established for Bonds of 
                        different priority; and
                            (ii) not less than one Pool for all other 
                        Bonds issued by the Issuer for which a 
                        dedicated revenue stream has not been pledged 
                        for repayment.
                    (E) The Administrative Supervisor shall not place 
                into separate Pools Bonds of the same Issuer that have 
                identical rights in security or priority.
            (4) Notwithstanding the preceding provisions of this 
        subsection, solely with respect to a preexisting voluntary 
        agreement as described in section 104(i)(3) of this Act, such 
        voluntary agreement may classify Insured Bonds and uninsured 
        bonds in different Pools and provide different treatment 
        thereof so long as the preexisting voluntary agreement has been 
        agreed to by--
                    (A) holders of a majority in amount of all 
                uninsured bonds outstanding in the modified Pool; and
                    (B) holders (including insurers with power to vote) 
                of a majority in amount of all Insured Bonds.
    (e) Authorization of Territory Instrumentalities.--A covered 
territorial instrumentality is an Authorized Territorial 
Instrumentality if it has been specifically authorized to be eligible 
to avail itself of the procedures under this section by the 
Administrative Supervisor.
    (f) Information Delivery Requirement.--Before solicitation of 
acceptance or rejection of a Modification under subsection (h), the 
Issuer shall provide to the Calculation Agent, the Information Agent, 
and the Administrative Supervisor, the following information--
            (1) a description of the Issuer's economic and financial 
        circumstances which are, in the Issuer's opinion, relevant to 
        the request for the proposed Qualifying Modification, a 
        description of the Issuer's existing debts, a description of 
        the impact of the proposed Qualifying Modification on the 
        territory's or its territorial instrumentalities' public debt;
            (2) if the Issuer is seeking Modifications affecting any 
        other Pools of Bonds of the Territory Government Issuer or its 
        Authorized Territorial Instrumentalities, a description of such 
        other Modifications;
            (3) if a Fiscal Plan with respect to such Issuer has been 
        certified, the applicable Fiscal Plan certified in accordance 
        with section 201; and
            (4) such other information as may be required under 
        applicable securities laws.
    (g) Qualifying Modification.--A Modification is a Qualifying 
Modification if one of the following processes has occurred:
            (1) Consultation process.--
                    (A) the Issuer proposing the Modification has 
                consulted with holders of Bonds in each Pool of such 
                Issuer prior to soliciting a vote on such Modification;
                    (B) each exchanging, repurchasing, converting, or 
                substituting holder of Bonds of any series in a Pool 
                affected by that Modification is offered the same 
                amount of consideration per amount of principal, the 
                same amount of consideration per amount of interest 
                accrued but unpaid and the same amount of consideration 
                per amount of past due interest, respectively, as that 
                offered to each other exchanging, repurchasing, 
                converting, or substituting holder of Bonds of any 
                series in a Pool affected by that Modification (or, 
                where a menu of instruments or other consideration is 
                offered, each exchanging, repurchasing, converting, or 
                substituting holder of Bonds of any series in a Pool 
                affected by that Modification is offered the same 
                amount of consideration per amount of principal, the 
                same amount of consideration per amount of interest 
                accrued but unpaid and the same amount of consideration 
                per amount of past due interest, respectively, as that 
                offered to each other exchanging, repurchasing, 
                converting, or substituting holder of Bonds of any 
                series in a Pool affected by that Modification electing 
                the same option under such menu of instruments); and
                    (C) the Modification is certified by the 
                Administrative Supervisor as being consistent with the 
                requirements set forth in section 104(i)(1) and is in 
                the best interests of the creditors and is feasible.
            (2) Voluntary agreement process.--The Administrative 
        Supervisor has issued a certification that--
                    (A) the requirements set forth in section 104(i)(2) 
                and section 601(g)(1)(B) have been satisfied; or
                    (B) the Modification is consistent with a 
                restructuring support or similar agreement to be 
                implemented pursuant to the law of the covered 
                territory executed by the Issuer prior to the 
                establishment of an Oversight Board for the relevant 
                territory.
    (h) Solicitation.--
            (1) Upon receipt of a certification from the Administrative 
        Supervisor under subsection (g), the Information Agent shall, 
        if practical and except as provided in paragraph (2), submit to 
        the holders of any Outstanding Bonds of the relevant Issuer, 
        including holders of the right to vote such Outstanding Bonds, 
        the information submitted by the relevant Issuer under 
        subsection (f)(1) in order to solicit the vote of such holders 
        to approve or reject the Qualifying Modification.
            (2) If the Information Agent is unable to identify the 
        address of holders of any Outstanding Bonds of the relevant 
        Issuer, the Information Agent may solicit the vote or consent 
        of such holders by--
                    (A) delivering the solicitation to the paying agent 
                for any such Issuer or Depository Trust Corporation if 
                it serves as the clearing system for any of the 
                Issuer's Outstanding Bonds; or
                    (B) delivering or publishing the solicitation by 
                whatever additional means the Information Agent, after 
                consultation with the Issuer, deems necessary and 
                appropriate in order to make a reasonable effort to 
                inform holders of any Outstanding Bonds of the Issuer 
                which may include, notice by mail, publication in 
                electronic media, publication on a website of the 
                Issuer, or publication in newspapers of national 
                circulation in the United States and in a newspaper of 
                general circulation in the territory.
    (i) Who May Propose a Modification.--For each Issuer, a 
Modification may be proposed to the Administrative Supervisor by the 
Issuer or by one or more holders of the right to vote the Issuer's 
Outstanding Bonds. To the extent a Modification proposed by one or more 
holders of the right to vote Outstanding Bonds otherwise complies with 
the requirements of this title, the Administrative Supervisor may 
accept such Modification on behalf of the Issuer, in which case the 
Administrative Supervisor will instruct the Issuer to provide the 
information required in subsection (f).
    (j) Voting.--For each Issuer, any Qualifying Modification may be 
made with the affirmative vote of the holders of the right to vote at 
least two-thirds of the Outstanding Principal amount of the Outstanding 
Bonds in each Pool that have voted to approve or reject the Qualifying 
Modification, provided that holders of the right to vote not less than 
a majority of the aggregate Outstanding Principal amount of all the 
Outstanding Bonds in each Pool have voted to approve the Qualifying 
Modification. The holder of the right to vote the Outstanding Bonds 
that are Insured Bonds shall be the monoline insurer insuring such 
Insured Bond to the extent such insurer is granted the right to vote 
Insured Bonds for purposes of directing remedies or consenting to 
proposed amendments or modifications as provided in the applicable 
documents pursuant to which such Insured Bond was issued and insured.
    (k) Calculation Agent.--For the purpose of calculating the 
principal amount of the Bonds of any series eligible to participate in 
such a vote or consent solicitation and tabulating such votes or 
consents, the Territory Government Issuer may appoint a Calculation 
Agent for each Pool reasonably acceptable to the Administrative 
Supervisor.
    (l) Information Agent.--For the purpose of administering a vote of 
holders of Bonds, including the holders of the right to vote such 
Bonds, or seeking the consent of holder of Bonds, including the holders 
of the right to vote such Bonds, to a written action under this 
section, the Territory Government Issuer may appoint an Information 
Agent for each Pool reasonably acceptable to the Administrative 
Supervisor.
    (m) Binding Effect.--
            (1) A Qualifying Modification will be conclusive and 
        binding on all holders of Bonds whether or not they have given 
        such consent, and on all future holders of those Bonds whether 
        or not notation of such Qualifying Modification is made upon 
        the Bonds, if--
                    (A) the holders of the right to vote the 
                Outstanding Bonds in every Pool of the Issuer pursuant 
                to subsection (j) have consented to or approved the 
                Qualifying Modification;
                    (B) the Administrative Supervisor certifies that--
                            (i) the voting requirements of this section 
                        have been satisfied;
                            (ii) the Qualifying Modification complies 
                        with the requirements set forth in section 
                        104(i)(1); and
                            (iii) except for such conditions that have 
                        been identified in the Qualifying Modification 
                        as being non-waivable, any conditions on the 
                        effectiveness of the Qualifying Modification 
                        have been satisfied or, in the Administrative 
                        Supervisor's sole discretion, satisfaction of 
                        such conditions has been waived;
                    (C) with respect to a Bond Claim that is secured by 
                a lien on property and with respect to which the holder 
                of such Bond Claim has rejected or not consented to the 
                Qualifying Modification, the holder of such Bond--
                            (i) retains the lien securing such Bond 
                        Claims; or
                            (ii) receives on account of such Bond 
                        Claim, through deferred cash payments, 
                        substitute collateral, or otherwise, at least 
                        the equivalent value of the lesser of the 
                        amount of the Bond Claim or of the collateral 
                        securing such Bond Claim; and
                    (D) the district court for the territory or, for 
                any territory that does not have a district court, the 
                United States District Court for the District of 
                Hawaii, has, after reviewing an application submitted 
                to it by the applicable Issuer for an order approving 
                the Qualifying Modification, entered an order that the 
                requirements of this section have been satisfied.
            (2) Upon the entry of an order under paragraph (1)(D), the 
        conclusive and binding Qualifying Modification shall be valid 
        and binding on any person or entity asserting claims or other 
        rights, including a beneficial interest (directly or 
        indirectly, as principal, agent, counterpart, subrogee, insurer 
        or otherwise) in respect of Bonds subject to the Qualifying 
        Modification, any trustee, any collateral agent, any indenture 
        trustee, any fiscal agent, and any bank that receives or holds 
        funds related to such Bonds. All property of an Issuer for 
        which an order has been entered under paragraph (1)(D) shall 
        vest in the Issuer free and clear of all claims in respect of 
        any Bonds of any other Issuer. Such Qualifying Modification 
        will be full, final, complete, binding, and conclusive as to 
        the territorial government Issuer, other territorial 
        instrumentalities of the territorial government Issuer, and any 
        creditors of such entities, and should not be subject to any 
        collateral attack or other challenge by any such entities in 
        any court or other forum. Other than as provided herein, the 
        foregoing shall not prejudice the rights and claims of any 
        party that insured the Bonds, including the right to assert 
        claims under the Bonds as modified following any payment under 
        the insurance policy, and no claim or right that may be 
        asserted by any party in a capacity other than holder of a Bond 
        affected by the Qualifying Modification shall be satisfied, 
        released, discharged, or enjoined by this provision.
    (n) Judicial Review.--
            (1) The district court for the territory or, for any 
        territory that does not have a district court, the United 
        States District Court for the District of Hawaii shall have 
        original and exclusive jurisdiction over civil actions arising 
        under this section.
            (2) Notwithstanding section 106(e), there shall be a cause 
        of action to challenge unlawful application of this section.
            (3) The district court shall nullify a Modification and any 
        effects on the rights of the holders of Bonds resulting from 
        such Modification if and only if the district court determines 
        that such Modification is manifestly inconsistent with this 
        section.

SEC. 602. APPLICABLE LAW.

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

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

SEC. 701. SENSE OF CONGRESS REGARDING PERMANENT, PRO-GROWTH FISCAL 
              REFORMS.

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

            Passed the House of Representatives June 9, 2016.

            Attest:

                                                                 Clerk.
114th CONGRESS

  2d Session

                               H. R. 5278

_______________________________________________________________________

                                 AN ACT

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