I 
114TH CONGRESS 
1ST SESSION H. R. 4199 
To provide the Government of Puerto Rico the choice to restructure its 
municipal debt in conjunction with enhanced financial oversight, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 9, 2015 
Mr. DUFFY introduced the following bill; which was referred to the Committee 
on Natural Resources, and in addition to the Committee on the Judiciary, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
A BILL 
To provide the Government of Puerto Rico the choice to 
restructure its municipal debt in conjunction with en-
hanced financial oversight, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives 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 Financial Stability and Debt Restructuring 
Choice Act’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
VerDate Sep 11 2014 
06:23 Dec 10, 2015
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H4199.IH
H4199
SSpencer on DSK4SPTVN1PROD with BILLS
Sec. 1. Short title; table of contents. 
Sec. 2. Findings. 
TITLE I—ESTABLISHMENT AND ORGANIZATION OF FINANCIAL 
STABILITY COUNCIL 
Sec. 101. Puerto Rico Financial Stability Council. 
Sec. 102. Executive director and staff of Council. 
Sec. 103. Powers of Council. 
Sec. 104. Exemption from liability for claims. 
Sec. 105. Treatment of actions arising from Act. 
Sec. 106. Funding for operation of Council. 
Sec. 107. Termination of activities. 
Sec. 108. Application of laws of Puerto Rico to Council. 
Sec. 109. Rules of construction. 
TITLE II—RESPONSIBILITIES OF FINANCIAL STABILITY COUNCIL 
Sec. 201. Development of financial plan and budget for Puerto Rico. 
Sec. 202. Process for submission and approval of financial plan and annual 
Puerto Rico budget. 
Sec. 203. Restrictions on borrowing by Puerto Rico. 
Sec. 204. Effect of finding of noncompliance with financial plan and budget. 
Sec. 205. Recommendations on financial stability and management responsi-
bility. 
TITLE III—DEBT RESTRUCTURING 
Sec. 301. Amendment. 
Sec. 302. Effective date; application of amendment. 
Sec. 303. Severability. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) A combination of structural problems, 
mounting debt, and weak public finances has left 
Puerto Rico in a financial debt crisis and resulted in 
continued outmigration of residents and business 
from Puerto Rico further stifling growth. 
(2) A comprehensive, long-term approach must 
be established to initiate significant reforms to re-
store to Puerto Rico access to short-term and long- 
VerDate Sep 11 2014 
06:23 Dec 10, 2015
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H4199.IH
H4199
SSpencer on DSK4SPTVN1PROD with BILLS
term lending, eliminate annual deficits, and reduce 
its debt. 
(3) The current crisis requires congressional ac-
tion that supports Puerto Rico by providing the ap-
propriate tools needed to restore financial stability 
while respecting and strengthening its authority to 
operate and grow independently. 
TITLE I—ESTABLISHMENT AND 
ORGANIZATION 
OF 
FINAN-
CIAL STABILITY COUNCIL 
SEC. 101. PUERTO RICO FINANCIAL STABILITY COUNCIL. 
(a) ESTABLISHMENT.—Upon the enactment of a law 
or resolution adopted by the Legislative Assembly of Puer-
to Rico and signed by the Governor of Puerto Rico, and 
pursuant to article IV, section 3, clause 2 of the Constitu-
tion of the United States, there shall be established the 
Puerto Rico Financial Stability Council (here and after 
referred to in this Act as the ‘‘Council’’), consisting of 
members appointed in accordance with subsection (b). 
(b) MEMBERSHIP.— 
(1) IN GENERAL.—The Council shall consist of 
5 members appointed by the President who meet the 
qualifications described in subsection (c). 
(2) CONSULTATION
WITH
CONGRESS.—The 
President shall consult with the Speaker of the 
VerDate Sep 11 2014 
06:23 Dec 10, 2015
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H4199.IH
H4199
SSpencer on DSK4SPTVN1PROD with BILLS
House of Representatives, the Minority Leader of 
the House of Representatives, the Majority Leader 
of the Senate, the Minority Leader of the Senate, 
and the Resident Commissioner from Puerto Rico 
with respect to who should be appointed to the 
Council. 
(3) CHAIR.—The President shall designate one 
of the members of the Council as the chair of the 
Council. 
(4) SENSE
OF
CONGRESS
REGARDING
DEAD-
LINE FOR APPOINTMENT.—It is the sense of Con-
gress that the President should appoint the members 
of the Council as soon as practicable after the estab-
lishment of the Council, but in no event later than 
25 days after the date of the establishment of the 
Council. 
(5) TERM OF SERVICE.— 
(A) IN GENERAL.—Except as provided in 
subparagraph (B), each member of the Council 
shall be appointed for a term of 3 years. 
(B) APPOINTMENT FOR TERM FOLLOWING 
INITIAL TERM.—For the term immediately fol-
lowing the initial term, members shall be ap-
pointed by the President as follows: 
(i) 1 member for a term of 1 year. 
VerDate Sep 11 2014 
06:23 Dec 10, 2015
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H4199.IH
H4199
SSpencer on DSK4SPTVN1PROD with BILLS
(ii) 2 members each for a term of 2 
years. 
(iii) 2 members each for a term of 3 
years. 
(C) REMOVAL.—The President may re-
move any member of the Council only for cause. 
(c) QUALIFICATIONS FOR MEMBERSHIP.—An indi-
vidual meets the qualifications for membership on the 
Council if the individual— 
(1) has knowledge and expertise in finance, 
management, and the organization or operation of 
business or government; 
(2) does not provide goods or services to the 
Government of Puerto Rico (and is not the spouse, 
parent, child, or sibling of an individual who pro-
vides goods and services to the Government of Puer-
to Rico); 
(3) is not an officer or employee of the Govern-
ment of Puerto Rico; 
(4) maintains a primary residence in Puerto 
Rico or has a primary place of business in Puerto 
Rico; and 
(5) complies with Federal conflict of interest re-
quirements as mandated by section 208 of title 18, 
United States Code. 
VerDate Sep 11 2014 
06:23 Dec 10, 2015
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H4199.IH
H4199
SSpencer on DSK4SPTVN1PROD with BILLS
(d) NO COMPENSATION FOR SERVICE.—Members of 
the Council shall serve without pay, but may receive reim-
bursement for any reasonable and necessary expenses in-
curred by reason of service on the Council. 
(e) ADOPTION OF BY-LAWS FOR CONDUCTING BUSI-
NESS OF AUTHORITY.— 
(1) IN GENERAL.—As soon as practicable after 
the appointment of its members, but not later than 
30 days, the Council shall adopt by-laws, rules, and 
procedures governing its activities under this Act, in-
cluding procedures for hiring experts and consult-
ants. Such by-laws, rules, and procedures shall be 
public documents, and shall be submitted by the 
Council upon adoption to the Governor, the Legisla-
tive Assembly, the President, and Congress. 
(2) CERTAIN ACTIVITIES REQUIRING APPROVAL 
OF
MAJORITY
OF
MEMBERS.—Under the by-laws 
adopted pursuant to paragraph (1), the Council may 
conduct its operations under such procedures as it 
considers appropriate, except that an affirmative 
vote of a majority of the members of the Council 
shall be required in order for the Council to— 
(A) approve or disapprove a financial plan 
and budget under title II; and 
VerDate Sep 11 2014 
06:23 Dec 10, 2015
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H4199.IH
H4199
SSpencer on DSK4SPTVN1PROD with BILLS
(B) implement recommendations on finan-
cial stability and management responsibility 
under section 107. 
(3) ADOPTION OF RULES AND REGULATIONS OF 
PUERTO RICO.—The Council may incorporate in its 
by-laws, rules, and procedures under this subsection 
such rules and regulations of the Government of 
Puerto Rico as it considers appropriate to enable it 
to carry out its activities under this Act with the 
greatest degree of independence practicable. 
SEC. 102. EXECUTIVE DIRECTOR AND STAFF OF COUNCIL. 
(a) EXECUTIVE DIRECTOR.—The Council shall have 
an executive director who shall be appointed by the chair 
with the consent of the Council. The executive director 
shall be paid at a rate determined by the Council, except 
that such rate may not exceed the rate of basic pay pay-
able for level IV of the Executive Schedule. 
(b) STAFF.—With the approval of the chair, the exec-
utive director may appoint and fix the pay of additional 
personnel as the executive director considers appropriate, 
except that no individual appointed by the executive direc-
tor may be paid at a rate greater than the rate of pay 
for the executive director. 
(c) INAPPLICABILITY
OF CERTAIN EMPLOYMENT 
AND PROCUREMENT LAWS.— 
VerDate Sep 11 2014 
06:23 Dec 10, 2015
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H4199.IH
H4199
SSpencer on DSK4SPTVN1PROD with BILLS
(1) CIVIL SERVICE LAWS.—The executive direc-
tor and staff of the Council may be appointed with-
out regard to the provisions of title 5, United States 
Code, governing appointments in the competitive 
service, and paid without regard to the provisions of 
chapter 51 and subchapter III of chapter 53 of that 
title relating to classification and General Schedule 
pay rates. 
(2) PUERTO RICO EMPLOYMENT AND PROCURE-
MENT LAWS.—The executive director and staff of 
the Council may be appointed and paid without re-
gard to the provisions of the laws of Puerto Rico 
governing appointments and salaries. The provisions 
of the laws of Puerto Rico governing procurement 
shall not apply to the Council. 
(d) STAFF OF FEDERAL AGENCIES.—Upon request 
of the chair, the head of any Federal department or agen-
cy may detail, on a reimbursable or nonreimbursable basis, 
any of the personnel of that department or agency to the 
Council to assist it in carrying out its duties under this 
Act. 
(e) PRESERVATION OF RETIREMENT AND CERTAIN 
OTHER RIGHTS OF FEDERAL EMPLOYEES WHO BECOME 
EMPLOYED BY THE COUNCIL.— 
VerDate Sep 11 2014 
06:23 Dec 10, 2015
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H4199.IH
H4199
SSpencer on DSK4SPTVN1PROD with BILLS
(1) IN
GENERAL.—A Federal employee who, 
within 2 months after separating from the Federal 
Government, becomes employed by the Council— 
(A) may elect, for purposes of the retire-
ment system in which that individual last par-
ticipated before so separating, to have such in-
dividual’s period of service with the Council 
treated in the same way as if performed in the 
position within the Federal Government from 
which separated, subject to the requisite em-
ployee deductions and agency contributions 
being currently deposited in the appropriate 
fund; and 
(B) if, after serving with the Council, such 
employee becomes reemployed by the Federal 
Government, shall be entitled to credit for the 
full period of such individual’s service with the 
Council for purposes of determining the appli-
cable leave accrual rate. 
(2) RETIREMENT.— 
(A) CONTRIBUTIONS.—For purposes of 
subparagraph (A) of paragraph (1)— 
(i) the employee deductions referred 
to in such paragraph shall be made from 
basic pay for service with the Council, and 
VerDate Sep 11 2014 
06:23 Dec 10, 2015
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H4199.IH
H4199
SSpencer on DSK4SPTVN1PROD with BILLS
shall be computed using the same percent-
age as would then apply if the individual 
were instead serving in the position within 
the Federal Government from which sepa-
rated; and 
(ii) the agency contributions referred 
to in such paragraph shall be made by the 
Council. 
(B) 
DOUBLE
COVERAGE
NOT
PER-
MITTED.—An individual who makes an election 
under paragraph (1)(A) shall be ineligible, while 
such election remains in effect, to participate in 
any retirement system for employees of the 
Government of Puerto Rico. 
(3) REGULATIONS.—The Office of Personnel 
Management shall prescribe such regulations as may 
be necessary to carry out this subsection. Regula-
tions to carry out paragraph (1)(A) shall be pre-
scribed in consultation with the office or agency of 
the Government of Puerto Rico having jurisdiction 
over any retirement system referred to in paragraph 
(2)(B). 
SEC. 103. POWERS OF COUNCIL. 
(a) HEARINGS AND SESSIONS.—The Council may, for 
the purpose of carrying out this Act, hold hearings, sit 
VerDate Sep 11 2014 
06:23 Dec 10, 2015
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H4199.IH
H4199
SSpencer on DSK4SPTVN1PROD with BILLS
and act at times and places, take testimony, and receive 
evidence as the Council considers appropriate. The Council 
may administer oaths or affirmations to witnesses appear-
ing before it. 
(b) POWERS OF MEMBERS AND AGENTS.—Any mem-
ber or agent of the Council may, if authorized by the 
Council, take any action which the Council is authorized 
to take by this section. 
(c) OBTAINING OFFICIAL DATA.— 
(1) FROM
FEDERAL
GOVERNMENT.—Notwith-
standing sections 552 (commonly known as the 
Freedom of Information Act) and 552b (the Privacy 
Act) of title 5, United States Code, the Council 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 GOVERNMENT OF PUERTO RICO.— 
Notwithstanding any other provision of law, the 
Council shall have the right to secure copies of such 
records, documents, information, or data from any 
entity of the Government of Puerto Rico necessary 
to enable the Council to carry out its responsibilities 
under this Act. At the request of the Council, the 
Council shall be granted direct access to such infor-
VerDate Sep 11 2014 
06:23 Dec 10, 2015
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H4199.IH
H4199
SSpencer on DSK4SPTVN1PROD with BILLS
mation systems, records, documents, information, or 
data as will enable the Council to carry out its re-
sponsibilities under this Act. The head of the entity 
of the Government of Puerto Rico responsible shall 
timely provide the Council with such information 
and assistance (including granting the Council direct 
access to automated or other information systems) 
as the Council requires under this paragraph. 
(d) GIFTS, BEQUESTS, AND DEVISES.—The Council 
may accept, use, and dispose of gifts, bequests, or devises 
of services or property, both real and personal, for the pur-
pose of aiding or facilitating the work of the Council. 
Gifts, bequests, or devises of money and proceeds from 
sales of other property received as gifts, bequests, or de-
vises shall be deposited in such account as the Council may 
establish and shall be available for disbursement upon 
order of the chair. 
(e) SUBPOENA POWER.— 
(1) IN GENERAL.—The Council may issue sub-
poenas requiring the attendance and testimony of 
witnesses and the production of any evidence relat-
ing to any matter under investigation by the Coun-
cil. The attendance of witnesses and the production 
of evidence may be required from any place within 
VerDate Sep 11 2014 
06:23 Dec 10, 2015
Jkt 059200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H4199.IH
H4199
SSpencer on DSK4SPTVN1PROD with BILLS
the United States at any designated place of hearing 
within the United States. 
(2) FAILURE TO OBEY A SUBPOENA.—If a per-
son refuses to obey a subpoena issued under para-
graph (1), the Council may apply to a United States 
district court for an order requiring that person to 
appear before the Council to give testimony, produce 
evidence, or both, relating to the matter under inves-
tigation. The application may be made within the ju-
dicial district where the hearing is conducted or 
where that person is found, resides, or transacts 
business. Any failure to obey the order of the court 
may be punished by the court as civil contempt. 
(3) SERVICE OF SUBPOENAS.—The subpoenas 
of the Council shall be served in the manner pro-
vided for subpoenas issued by a United States dis-
trict court under the Federal Rules of Civil Proce-
dure for the United States district courts. 
(4) SERVICE OF PROCESS.—All process of any 
court to which application is made under paragraph 
(2) may be served in the judicial district in which 
the person required to be served resides or may be 
found. 
(f) ADMINISTRATIVE SUPPORT SERVICES.—Upon the 
request of the Council, the Administrator of General Serv-
VerDate Sep 11 2014 
06:23 Dec 10, 2015
Jkt 059200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H4199.IH
H4199
SSpencer on DSK4SPTVN1PROD with BILLS
ices may provide to the Council, on a reimbursable basis, 
the administrative support services necessary for the 
Council to carry out its responsibilities under this Act. 
(g) AUTHORITY TO ENTER INTO CONTRACTS.—The 
executive director may enter into such contracts as the ex-
ecutive director considers appropriate (subject to the ap-
proval of the chair) to carry out the Council’s responsibil-
ities under this Act. 
(h) CIVIL ACTIONS TO ENFORCE POWERS.—The 
Council may seek judicial enforcement of its authority to 
carry out its responsibilities under this Act. 
(i) PENALTIES.— 
(1) ACTS
PROHIBITED.—Any officer or em-
ployee of the Government of Puerto Rico who— 
(A) takes any action in violation of any 
valid order of the Council or fails or refuses to 
take any action required by any such order; or 
(B) prepares, presents, or certifies any in-
formation (including any projections or esti-
mates) or report for the Council or any of its 
agents that is false or misleading, or, upon 
learning that any such information is false or 
misleading, fails to immediately advise the 
Council or its agents thereof in writing, shall be 
guilty of a misdemeanor. 
VerDate Sep 11 2014 
06:23 Dec 10, 2015
Jkt 059200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H4199.IH
H4199
SSpencer on DSK4SPTVN1PROD with BILLS
(2) ADMINISTRATIVE DISCIPLINE.—In addition 
to any other applicable penalty, any officer or em-
ployee of the Government of Puerto Rico who know-
ingly and willfully violates paragraph (1) shall be 
subject to appropriate administrative discipline, in-
cluding (when appropriate) suspension from duty 
without pay or removal from office by order of either 
the Governor or Council. 
(3) REPORT BY GOVERNOR ON DISCIPLINARY 
ACTIONS TAKEN.—In the case of a violation of para-
graph (1) by an officer or employee of the Govern-
ment of Puerto Rico, the Governor shall immediately 
report to the Council all pertinent facts together 
with a statement of the action taken thereon. 
SEC. 104. EXEMPTION FROM LIABILITY FOR CLAIMS. 
The Council and its members may not be liable for 
any obligation of or claim against Puerto Rico resulting 
from actions taken to carry out this Act. 
SEC. 105. TREATMENT OF ACTIONS ARISING FROM ACT. 
(a) JURISDICTION
ESTABLISHED
IN
DISTRICT 
COURT FOR PUERTO RICO.—Except as provided in section 
103(e)(2) (relating to the issuance of an order enforcing 
a subpoena), any action against the Council or any action 
otherwise arising out of this Act, in whole or in part, shall 
VerDate Sep 11 2014 
06:23 Dec 10, 2015
Jkt 059200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H4199.IH
H4199
SSpencer on DSK4SPTVN1PROD with BILLS
be brought in the United States District Court for the Dis-
trict of Puerto Rico. 
(b) PROMPT APPEAL.— 
(1) COURT OF APPEALS.—Notwithstanding any 
other provision of law, any order of the United 
States District Court for the District of Puerto Rico 
which is issued pursuant to an action brought under 
subsection (a) shall be reviewable only pursuant to 
a notice of appeal to the United States Court of Ap-
peals for the First Circuit. 
(2) SUPREME
COURT.—Notwithstanding any 
other provision of law, review by the Supreme Court 
of the United States of a decision of the Court of 
Appeals which is issued pursuant to paragraph (1) 
may be had only if the petition for such review is 
filed within 10 days after the entry of such decision. 
(c) TIMING
OF RELIEF.—No order of any court 
granting declaratory or injunctive relief against the Coun-
cil, including relief permitting or requiring the obligation, 
borrowing, or expenditure of funds, shall take effect dur-
ing the pendency of the action before such court, during 
the time appeal may be taken, or (if appeal is taken) dur-
ing the period before the court has entered its final order 
disposing of such action. 
VerDate Sep 11 2014 
06:23 Dec 10, 2015
Jkt 059200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H4199.IH
H4199
SSpencer on DSK4SPTVN1PROD with BILLS