103 
(c) STAY NOT OPERABLE.—The establishment of an 
Oversight Board for Puerto Rico in accordance with sec-
tion 101 does not operate as a stay— 
(1) solely under subsection (b)(1) of this sec-
tion, of the continuation of, including the issuance or 
employment of process, of a judicial, administrative, 
or other action or proceeding against the Govern-
ment of Puerto Rico that was commenced on or be-
fore December 18, 2015; or 
(2) of the commencement or continuation of an 
action or proceeding by a governmental unit to en-
force such governmental unit’s or organization’s po-
lice and regulatory power, including the enforcement 
of a judgment other than a money judgment, ob-
tained in an action or proceeding by the govern-
mental 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
104 
(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 de-
livers a certification to the Governor that, in 
the Oversight Board’s sole discretion, an addi-
tional 75 days are needed to seek to complete 
a voluntary process under title VI of this Act 
with respect to the government of the Common-
wealth 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 deter-
mines, 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 Com-
monwealth of Puerto Rico or any of its territorial in-
strumentalities, the date on which a case is filed by
105 
or on behalf of the government of the Common-
wealth of Puerto Rico or any of its territorial instru-
mentalities, 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 exclu-
sive 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 pro-
vided 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 termi-
nated with respect to the party in interest making such 
request, unless the court, after notice and a hearing, or-
ders 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
106 
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 hear-
ing. 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 prelimi-
nary 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 cir-
cumstances. 
(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 sec-
tion 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
107 
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 ap-
pointed officials, directors, officers of and employees 
acting in their official capacity on behalf of the Gov-
ernment 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 prop-
erty— 
(A) that is conditioned upon the financial 
condition of, or the commencement of a restruc-
110 
(k) EFFECT.—This section does not discharge an ob-
ligation of the Government of Puerto Rico or release, in-
validate, 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 imple-
mented 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 sec-
tion 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 emer-
gency in Puerto Rico.
111 
(2) As a result of its fiscal emergency, the Gov-
ernment of Puerto Rico has been unable to provide 
its citizens with effective services. 
(3) The current fiscal emergency has also af-
fected the long-term economic stability of Puerto 
Rico by contributing to the accelerated outmigration 
of residents and businesses. 
(4) A comprehensive approach to fiscal, man-
agement, 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 Govern-
ment of Puerto Rico to restructure debts in a fair 
and orderly process. 
(5) Additionally, an immediate—but tem-
porary—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 deter-
mine whether to appear or intervene on behalf 
of the Government of Puerto Rico in any litiga-
tion that may have been commenced prior to 
the effectiveness or upon expiration of the stay.
112 
(B) The stay is limited in nature and nar-
rowly 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 informa-
tion that is reviewed by an independent author-
ity 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 con-
gressional action to restore its financial account-
ability 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 lim-
ited period of time during which it can focus its re-
sources on negotiating a voluntary resolution with 
its creditors instead of defending numerous, costly 
creditor lawsuits;
113 
(3) provide an oversight mechanism to assist 
the Government of Puerto Rico in reforming its fis-
cal governance and support the implementation of 
potential debt restructuring; 
(4) make available a Federal restructuring au-
thority, if necessary, to allow for an orderly adjust-
ment of all of the Government of Puerto Rico’s li-
abilities; 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 long-
standing fiscal governance issues and return to eco-
nomic 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 Puer-
to Rico, Guam, American Samoa, the Commonwealth of 
the Northern Mariana Islands, and the United States Vir-
114 
gin Islands are authorized to make purchases through the 
General Services Administration.’’. 
SEC. 407. PROTECTION FROM INTER-DEBTOR TRANSFERS. 
(a) PROTECTION OF CREDITORS.—While an Over-
sight Board for Puerto Rico is in existence, if any property 
of any territorial instrumentality of Puerto Rico is trans-
ferred in violation of applicable law under which any cred-
itor has a valid pledge of, security interest in, or lien on 
such property, or which deprives any such territorial in-
strumentality of property in violation of applicable law as-
suring the transfer of such property to such territorial in-
strumentality 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 ADMINISTRA-
TION 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 sub-
section: 
‘‘(t) GAO REPORT ON SMALL BUSINESS ADMINIS-
TRATION PROGRAMS IN PUERTO RICO.—Not later than
115 
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 Rep-
resentatives and the Committee on Small Business and 
Entrepreneurship of the Senate a report on the application 
and utilization of contracting activities of the Administra-
tion (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 con-
tracting 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 Eco-
nomic Growth in Puerto Rico (hereinafter referred to as 
the ‘‘Task Force’’). 
(b) MEMBERSHIP.—The Task Force shall be com-
posed of eight members as follows: 
(1) One member of the House of Representa-
tives, 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.
116 
(2) One member of the House of Representa-
tives, 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 Representa-
tives, 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 Representa-
tives. 
(4) One member of the House of Representa-
tives, 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 Representa-
tives. 
(5) One member of the Senate, who shall be ap-
pointed by the Majority Leader of the Senate, in co-
ordination with the Chairman of the Committee on 
Energy and Natural Resources of the Senate. 
(6) One member of the Senate, who shall be ap-
pointed by the Majority Leader of the Senate, in co-
ordination with the Chairman of the Committee on 
Finance of the Senate.
117 
(7) One member of the Senate, who shall be ap-
pointed by the Minority Leader of the Senate, in co-
ordination 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 ap-
pointed by the Minority Leader of the Senate, in co-
ordination with the ranking minority member of the 
Committee on Finance of the Senate. 
(c) DEADLINE
FOR APPOINTMENT.—All appoint-
ments 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 Mem-
ber 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 appoint-
ment. 
(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 Con-
gress.
118 
(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 includ-
ing equitable access to Federal health care pro-
grams; 
(2) recommended changes to Federal law and 
programs that, if adopted, would serve to spur sus-
tainable long-term economic growth, job creation, re-
duce child poverty, and attract investment in Puerto 
Rico; 
(3) the economic effect of Administrative Order 
No. 346 of the Department of Health of the Com-
monwealth of Puerto Rico (relating to natural prod-
ucts, 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.
119 
(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 re-
ceive evidence as the Task Force considers appropriate. 
If the Task Force holds hearings, at least one such hear-
ing 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 enact-
ment 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—
120 
(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 condi-
tions; and 
(3) recommendations on non-fiscal actions, or 
policies that would not imperil America’s homeland 
and national security, that could be taken by Con-
gress or the Administration to avert future indebted-
ness 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 Gen-
eral 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 terri-
tory’s public debt, and future projections of each ter-
ritory’s public debt; 
(2) the historical levels of each territory’s rev-
enue, current amount and composition of each terri-
121 
tory’s revenue, and future projections of each terri-
tory’s revenue; 
(3) the drivers and composition of each terri-
tory’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 sec-
tion. 
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 ‘quali-
fied 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 metro-
politan statistical area in the Common-
wealth of Puerto Rico, the term ‘qualified
122 
census tract’ has the meaning given that 
term in section 42(d)(5)(B)(ii) of the In-
ternal 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 Fi-
nancial Oversight and Management 
Board for the Commonwealth of Puer-
to Rico created by the Puerto Rico 
Oversight, Management, and Eco-
nomic Stability Act ceases to exist, 
whichever event occurs first.’’. 
(2) REGULATIONS.—The Administrator of the 
Small Business Administration shall issue regula-
tions to implement the amendment made by para-
graph (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 Adminis-
trator of the Small Business Administration shall
123 
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 Gen-
eral 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 guid-
ance 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 Ad-
ministration in accordance with paragraph (1);
124 
(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 re-
forms made by the criteria and guidance imple-
mented 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 govern-
ment or an Oversight Board for Puerto Rico estab-
lished under section 101.
125 
TITLE V—PUERTO RICO INFRA-
STRUCTURE 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.), ap-
proved on May 5, 2000, as amended. 
(2) CRITICAL
PROJECT.—The term ‘‘Critical 
Project’’ means a project identified under the provi-
sions of this title and intimately related to address-
ing 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 es-
tablished by Subtitle B of Puerto Rico Act 57–2014. 
(4) ENERGY
PROJECTS.—The term ‘‘Energy 
Projects’’ means those projects addressing the gen-
eration, 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
126 
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 in-
clude problems in the physical infrastructure for en-
ergy, water, sewer, solid waste, highways or roads, 
ports, telecommunications, and other similar infra-
structure. 
(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 Puer-
to 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 require-
ment. 
(8) GOVERNOR.—The term ‘‘Governor’’ means 
the Governor of Puerto Rico. 
(9) 
INTERAGENCY
ENVIRONMENTAL
SUB-
COMMITTEE.—The 
term 
‘‘Interagency 
Environ-
127 
mental Subcommittee’’ means the Interagency Sub-
committee 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 Govern-
ment 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, on-
going, 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 exam-
iners, public corporation, commission, independent 
office, division, administration, bureau, department, 
authority, official, person, entity, municipality, or 
any instrumentality of Puerto Rico, or an adminis-
trative body authorized by law to perform duties of 
regulating, investigating, or that may issue a deci-
sion, or with the power to issue licenses, certificates,
128 
permits, concessions, accreditations, privileges, fran-
chises, except the Senate and the House of Rep-
resentatives of the Legislature and the judicial 
branch. 
(14) PUERTO RICO ELECTRIC POWER AUTHOR-
ITY.—The term ‘‘Puerto Rico Electric Power Au-
thority’’ means the Puerto Rico Electric Power Au-
thority 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 Co-
ordinator. 
(b) APPOINTMENT.— 
(1) IN GENERAL.—The Revitalization Coordi-
nator shall be appointed by the Governor as follows: 
(A) Prior to the appointment of the Revi-
talization 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
129 
the Revitalization Coordinator. Such appoint-
ment shall be effective immediately. 
(C) If the Governor fails to select a Revi-
talization 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 exper-
tise in the planning, predevelopment, financing, 
development, operations, engineering, or market 
participation of infrastructure projects, pro-
vided 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 Per-
mitting 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 pro-
vided goods and services to the government of
130 
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 Coor-
dinator shall be compensated at an annual rate de-
termined by the Oversight Board sufficient in the 
judgment of the Oversight Board to obtain the serv-
ices of a person with the skills and experience re-
quired to discharge the duties of the position, but 
such compensation shall not exceed the annual sal-
ary 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 Coordi-
nator may be removed for any reason, in the Over-
sight Board’s discretion. 
(2) TERMINATION OF POSITION.—Upon the ter-
mination of the Oversight Board pursuant to section 
209 of this Act, the position of the Revitalization 
Coordinator shall terminate.
131 
SEC. 503. CRITICAL PROJECTS. 
(a) IDENTIFICATION OF PROJECTS.— 
(1) PROJECT SUBMISSION.—Any Project Spon-
sor may submit, so long as the Oversight Board is 
in operation, any existing, ongoing, or proposed 
project to the Revitalization Coordinator. The Revi-
talization 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 guaran-
tees, 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, nec-
essary to complete and maintain the project; 
(D) the environmental and economic bene-
fits provided by the project, including the num-
ber of jobs to be created that will be held by 
residents of Puerto Rico and the expected eco-
nomic impact, including the impact on rate-
payers, if applicable; 
(E) the status of the project if it is exist-
ing or ongoing; and
132 
(F) in addition to the requirements found 
in subparagraphs (A) through (E), the Revital-
ization Coordinator may require such submis-
sion to include any or all of the following cri-
teria that assess how the project will— 
(i) reduce reliance on oil for electric 
generation in Puerto Rico; 
(ii) improve performance of energy in-
frastructure and overall energy efficiency; 
(iii) expedite the diversification and 
conversion of fuel sources for electric gen-
eration from oil to natural gas and renew-
ables in Puerto Rico as defined under ap-
plicable Puerto Rico laws; 
(iv) promote the development and uti-
lization 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 af-
fordable energy rates for consumers and 
business; or
133 
(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 incon-
sistent with studies or plans otherwise re-
quired under Puerto Rico laws. 
(2) IDENTIFICATION
OF
RELEVANT
PUERTO 
RICO
AGENCIES.—Within 20 days of receiving a 
project submission under paragraph (1), the Revital-
ization 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 PERMIT-
TING 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 Agen-
cy fails to provide an Expedited Permitting 
Process within 20 days of receiving a project
134 
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 Coordi-
nator shall require Puerto Rico Agencies to im-
plement 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 permit-
ting authority to any other Territorial Instru-
mentality 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 Crit-
ical 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 Crit-
135 
ical Project. If the Governor fails to provide a 
recommendation during the development of the 
Critical Project Report, the failure shall con-
stitute 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 de-
fined by Puerto Rico Act 550–2004, a deter-
mination by the Planning Board will be re-
quired 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 Com-
mission determines such Energy Project will af-
fect 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 Inte-
137 
mit 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 Over-
sight 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 Coordi-
nator 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 Expe-
dited Permitting Process established by the Revital-
ization Coordinator under section 503(a)(3). 
(2) COMPOSITION.—The Interagency Environ-
mental Subcommittee shall consist of the Revitaliza-
138 
tion Coordinator, and a representative selected by 
the Governor in consultation with the Revitalization 
Coordinator representing each of the following agen-
cies: The Environmental Quality Board, the Plan-
ning Board, the Puerto Rico Department of Natural 
and Environmental Resources, and any other Puerto 
Rico Agency determined to be relevant by the Revi-
talization Coordinator. 
(b) LENGTH
OF EXPEDITED PERMITTING PROC-
ESS.—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). Sec-
tion 12 of Act 76 (3 L.P.R.A. 1942) shall not be applica-
ble to Critical Projects. Furthermore, any transactions, 
processes, projects, works, or programs essential to the 
completion of a Critical Project shall continue to be proc-
essed and completed under such Expedited Permitting 
Process regardless of the termination of the Oversight 
Board under section 209. 
(c) EXPEDITED
PERMITTING
PROCESS
COMPLI-
ANCE.— 
(1) WRITTEN
NOTICE.—A Critical Project 
Sponsor may in writing notify the Oversight Board 
of the failure of a Puerto Rico Agency or the Revi-
139 
talization Coordinator to adhere to the Expedited 
Permitting Process. 
(2) FINDING
OF
FAILURE.—If the Oversight 
Board finds either the Puerto Rico Agency or Revi-
talization 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 Over-
sight Board is in operation that may affect the Ex-
pedited Permitting Process. 
(2) FINDING OF OVERSIGHT BOARD.—Upon re-
ceipt 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.
140 
(e) ESTABLISHMENT OF CERTAIN TERMS AND CON-
DITIONS.—No Puerto Rico Agency may include in any cer-
tificate, 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 deter-
mines the term or condition would prevent or impair the 
expeditious construction, operation, or expansion of the 
Critical Project. The Revitalization Coordinator may re-
quest 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 ap-
plicable 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 juris-
diction over the permitting, or administrative or environ-
mental review of private or public projects in Puerto Rico,
141 
shall name a Point of Contact who will serve as that agen-
cy’s liaison with the Revitalization Coordinator. 
(b) FEDERAL GRANTS AND LOANS.—For each Crit-
ical Project with a pending or potential Federal grant, 
loan, or loan guarantee application, the Revitalization Co-
ordinator and the relevant Point of Contact shall cooper-
ate 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 Ap-
propriations 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 In-
terior’’; and 
(2) in subsection (b)—
142 
(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 Com-
munities 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 infra-
structure 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.
143 
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
INSTRUMEN-
TALITY.—The term ‘‘Authorized Territorial Instru-
mentality’’ means a covered territorial instrumen-
tality authorized in accordance with subsection (e). 
(3) CALCULATION AGENT.—The term ‘‘Calcula-
tion 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
144 
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 rel-
evant offering materials and which converts to a cur-
rent pay bond on a future date. 
(6) INFORMATION
AGENT.—The term ‘‘Infor-
mation Agent’’ means an information agent ap-
pointed in accordance with subsection (l). 
(7) 
INSURED
BOND.—The 
term 
‘‘Insured 
Bond’’ means a bond subject to a financial guar-
antee or similar insurance contract, policy or surety 
issued by a monoline insurer. 
(8) ISSUER.—The term ‘‘Issuer’’ means, as ap-
plicable, the Territory Government Issuer or an Au-
thorized Territorial Instrumentality that has issued 
or guaranteed at least one Bond that is Out-
standing. 
(9) MODIFICATION.—The term ‘‘Modification’’ 
means any modification, amendment, supplement or 
waiver affecting one or more series of Bonds, includ-
ing those effected by way of exchange, repurchase, 
conversion, or substitution. 
(10) OUTSTANDING.—The term ‘‘Outstanding,’’ 
in the context of the principal amount of Bonds,
145 
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 Ap-
preciation Bond or a Convertible Capital Appre-
ciation Bond, the outstanding principal amount 
of such Bond; and 
(B) for a Bond that is a Capital Apprecia-
tion Bond or a Convertible Capital Appreciation 
Bond, the current accreted value of such Cap-
ital Appreciation Bond or a Convertible Capital 
Appreciation Bond, as applicable. 
(12) POOL.—The term ‘‘Pool’’ means a pool es-
tablished in accordance with subsection (d). 
(13) QUALIFYING
MODIFICATION.—The term 
‘‘Qualifying Modification’’ means a Modification pro-
posed 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 se-
cured by a lien on property, provided that the inclu-
sion 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 re-
146 
characterize 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 con-
summated. 
(15) TERRITORY
GOVERNMENT
ISSUER.—The 
term ‘‘Territory Government Issuer’’ means the Gov-
ernment of Puerto Rico or such covered territory for 
which an Oversight Board has been established pur-
suant 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 Modifica-
tion, 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 re-
demption in accordance with its terms or previously 
become due and payable at maturity or otherwise 
and the Issuer has previously satisfied its obligation
147 
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 secu-
rity of another series; or 
(4) the Bond is held by the Issuer or by an Au-
thorized 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 Au-
thorized Territorial Instrumentality of the Territory Gov-
ernment 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 in-
terests, by contract or otherwise, to direct the manage-
ment of or elect or appoint a majority of the board of di-
rectors 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 Quali-
fying Modification, the Issuer shall deliver to the Calcula-
148 
tion Agent a certificate signed by an authorized represent-
ative 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 Se-
cured Pool. 
(3) The Administrative Supervisor shall estab-
lish Pools according to the following principles: 
(A) For each Issuer that has issued mul-
tiple Bonds that are distinguished by specific 
provisions governing priority or security ar-
rangements, including Bonds that have been 
issued as general obligations of the Territory 
Government Issuer to which the Territory Gov-
ernment Issuer pledged the full or good faith, 
credit, and taxing power of the Territory Gov-
ernment Issuer, separate Pools shall be estab-
lished corresponding to the relative priority or 
security arrangements of each holder of Bonds
149 
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 mul-
tiple Bonds, for at least some of which a guar-
antee 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 con-
tained 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
150 
pledged, and separate Secured Pools shall 
be established for Bonds of different pri-
ority; 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 dif-
ferent 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.
151 
(e) AUTHORIZATION OF TERRITORY INSTRUMENTAL-
ITIES.—A covered territorial instrumentality is an Author-
ized 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.—Be-
fore solicitation of acceptance or rejection of a Modifica-
tion under subsection (h), the Issuer shall provide to the 
Calculation Agent, the Information Agent, and the Admin-
istrative 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 affect-
ing any other Pools of Bonds of the Territory Gov-
ernment Issuer or its Authorized Territorial Instru-
mentalities, a description of such other Modifica-
tions; 
(3) if a Fiscal Plan with respect to such Issuer 
has been certified, the applicable Fiscal Plan cer-
tified in accordance with section 201; and
152 
(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, con-
verting, 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 con-
sideration 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, repur-
chasing, 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 exchang-
ing, repurchasing, converting, or substituting 
holder of Bonds of any series in a Pool affected
153 
by that Modification is offered the same 
amount of consideration per amount of prin-
cipal, 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, con-
verting, or substituting holder of Bonds of any 
series in a Pool affected by that Modification 
electing the same option under such menu of in-
struments); and 
(C) the Modification is certified by the Ad-
ministrative 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 cov-
154 
ered 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 Ad-
ministrative Supervisor under subsection (g), the In-
formation Agent shall, if practical and except as pro-
vided 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 iden-
tify 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
155 
necessary and appropriate in order to make a 
reasonable effort to inform holders of any Out-
standing Bonds of the Issuer which may in-
clude, notice by mail, publication in electronic 
media, publication on a website of the Issuer, or 
publication in newspapers of national circula-
tion 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 Administra-
tive 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 Su-
pervisor 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 Modi-
fication may be made with the affirmative vote of the hold-
ers of the right to vote at least two-thirds of the Out-
standing Principal amount of the Outstanding Bonds in 
each Pool that have voted to approve or reject the Quali-
fying Modification, provided that holders of the right to
156 
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 in-
suring 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 in-
sured. 
(k) CALCULATION AGENT.—For the purpose of cal-
culating 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 Gov-
ernment Issuer may appoint a Calculation Agent for each 
Pool reasonably acceptable to the Administrative Super-
visor. 
(l) INFORMATION AGENT.—For the purpose of ad-
ministering a vote of holders of Bonds, including the hold-
ers 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 Informa-
157 
tion Agent for each Pool reasonably acceptable to the Ad-
ministrative 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 hold-
ers 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 sec-
tion have been satisfied; 
(ii) the Qualifying Modification com-
plies 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
158 
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 re-
jected or not consented to the Qualifying Modi-
fication, 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 collat-
eral 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 ap-
plication submitted to it by the applicable 
Issuer for an order approving the Qualifying 
Modification, entered an order that the require-
ments of this section have been satisfied.
159 
(2) Upon the entry of an order under para-
graph (1)(D), the conclusive and binding Qualifying 
Modification shall be valid and binding on any per-
son or entity asserting claims or other rights, includ-
ing a beneficial interest (directly or indirectly, as 
principal, agent, counterpart, subrogee, insurer or 
otherwise) in respect of Bonds subject to the Quali-
fying 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 terri-
torial 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, includ-
ing the right to assert claims under the Bonds as 
modified following any payment under the insurance
160 
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 Ha-
waii 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 applica-
tion of this section. 
(3) The district court shall nullify a Modifica-
tion 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 Modifica-
tion is manifestly inconsistent with this section. 
SEC. 602. APPLICABLE LAW. 
In any judicial proceeding regarding this title, Fed-
eral, State, or territorial laws of the United States, as ap-
plicable, shall govern and be applied without regard or ref-
erence to any law of any international or foreign jurisdic-
tion.
161 
TITLE VII—SENSE OF CONGRESS 
REGARDING 
PERMANENT, 
PRO-GROWTH 
FISCAL 
RE-
FORMS 
SEC. 701. SENSE OF CONGRESS REGARDING PERMANENT, 
PRO-GROWTH FISCAL REFORMS. 
It is the sense of the Congress that any durable solu-
tion 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 pos-
sessions 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 Gov-
ernment of Puerto Rico, including instrumental-
ities, in managing its public finances, and for 
other purposes.