I 

118TH CONGRESS 

1ST SESSION H. R. 1702 

To amend PROMESA to include certain ethics provisions to provide for 

the disqualification of certain advisors to the Financial Oversight and 

Management Board, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 22, 2023 

Mrs. GONZA ́LEZ-COLO ́N (for herself, Mr. TORRES of New York, and Mr. 

SOTO) introduced the following bill; which was referred to the Committee 

on Natural Resources 

A BILL 

To amend PROMESA to include certain ethics provisions 

to provide for the disqualification of certain advisors 

to the Financial Oversight and Management Board, and 

for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. DISQUALIFICATION OF CERTAIN ADVISORS TO 

4 THE FINANCIAL OVERSIGHT AND MANAGE5 MENT BOARD. 

6 Section 109 of PROMESA (48 U.S.C. 2129) is 

7 amended by adding at the end the following: 

8 ‘‘(c) DISQUALIFICATION OF CERTAIN ADVISORS.— 


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1 ‘‘(1) DEFINITION OF COVERED CONTRACT.—In 

2 this subsection, the term ‘covered contract’ means a 

3 contract with the territorial government or an in4 strumentality of the territorial government, the per5 formance of which is within the jurisdiction of the 

6 Oversight Board under section 204(b). 

7 ‘‘(2) DISQUALIFICATION.—In accordance with 

8 the rules adopted by the Oversight Board under 

9 paragraph (3), any third-party advisory or con10 sulting firm shall be disqualified from advising the 

11 Oversight Board for the duration of any period dur12 ing which the firm has as a client, or provides advi13 sory or other consulting services in any capacity to, 

14 an individual, corporation, association, organization, 

15 or other business entity, including a subsidiary, that 

16 is competing for, or is performing, a covered con17 tract. 

18 ‘‘(3) RULES.—For purposes of carrying out 

19 paragraph (2), the Oversight Board shall adopt rules 

20 to carry out the following: 

21 ‘‘(A) To be eligible to advise or consult the 

22 Oversight Board with respect to the review, 

23 procurement, or performance of a covered con24 tract, a third-party advisory or consulting firm 

25 shall certify to the Oversight Board that the 


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1 third-party advisory or consulting firm is not 

2 disqualified from advising the Oversight Board 

3 under paragraph (2). 

4 ‘‘(B) Any officer or employee of a third5 party advisory or consulting firm who prepares, 

6 presents, or certifies any information or report 

7 with respect to the certification of the third8 party advisory or consulting firm under sub9 paragraph (A) for the Oversight Board, or any 

10 agent of the Oversight Board, that is inten11 tionally false or misleading, or, on learning that 

12 any such information is false or misleading, 

13 fails to immediately advise the Oversight Board 

14 or an agent of the Oversight Board in writing, 

15 shall be subject to prosecution and penalties 

16 under law. 

17 ‘‘(C) If, after an investigation conducted 

18 by the Oversight Board, the Oversight Board 

19 determines that a third-party advisory or con20 sulting firm has provided services to the Over21 sight Board in violation of paragraph (2), has 

22 failed to submit a certification required under 

23 subparagraph (A), or is in violation of subpara24 graph (B) (including any rules adopted under 

25 subparagraph (A) or (B)), the Oversight Board 


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1 shall immediately refer such information to the 

2 Attorney General for the covered territory and 

3 the Office of the United States Attorney for the 

4 covered territory.’’. 

Æ 


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