IB 
Union Calendar No. 468 
114TH CONGRESS 
2D SESSION 
H. R. 5278 
[Report No. 114–602, Part I] 
To establish an Oversight Board to assist the Government of Puerto Rico, 
including instrumentalities, in managing its public finances, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 18, 2016 
Mr. DUFFY (for himself, Mr. BISHOP of Utah, and Mr. SENSENBRENNER) in-
troduced the following bill; which was referred to the Committee on Nat-
ural Resources, and in addition to the Committees on the Judiciary, Edu-
cation and the Workforce, and Small Business, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
JUNE 3, 2016 
Reported from the Committee on Natural Resources with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
JUNE 3, 2016 
The Committees on the Judiciary, Education and the Workforce, and Small 
Business discharged; committed to the Committee of the Whole House on 
the State of the Union and ordered to be printed 
[For text of introduced bill, see copy of bill as introduced on May 18, 2016] 
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A BILL 
To establish an Oversight Board to assist the Government 
of Puerto Rico, including instrumentalities, in managing 
its public finances, and for other purposes. 
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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 Oversight, Management, and Economic Sta-
bility 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 responsi-
bility. 
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. 
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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 in-
strumentalities. 
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. 
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. 
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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. 
If any provision of this Act or the application thereof 
to any person or circumstance is held invalid, the remain-
der of this Act, or the application of that provision to per-
sons 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. 
SEC. 4. SUPREMACY. 
The provisions of this Act shall prevail over any gen-
eral or specific provisions of territory law, State law, or 
regulation that is inconsistent with this Act. 
SEC. 5. DEFINITIONS. 
In this Act— 
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(1) AGREED
ACCOUNTING
STANDARDS.—The 
term ‘‘agreed accounting standards’’ means modified 
accrual accounting standards or, for any period dur-
ing which the Oversight Board determines in its sole 
discretion that a territorial government is not reason-
ably capable of comprehensive reporting that complies 
with modified accrual accounting standards, such 
other accounting standards as proposed by the Over-
sight Board. 
(2) BOND.—The term ‘‘Bond’’ means a bond, 
loan, letter of credit, other borrowing title, obligation 
of insurance, or other financial indebtedness for bor-
rowed money, including rights, entitlements, or obli-
gations whether such rights, entitlements, or obliga-
tions arise from contract, statute, or any other source 
of law, in any case, related to such a bond, loan, let-
ter of credit, other borrowing title, obligation of insur-
ance, 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, unliqui-
dated, fixed, contingent, matured, unmatured, 
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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 accord-
ance 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 Over-
sight Board pursuant to section 101 to be subject to 
the requirements of this Act. 
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(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 ‘‘Execu-
tive 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 Common-
wealth of Puerto Rico, including all its territorial in-
strumentalities. 
(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 cov-
ered territorial instrumentality, designated by the 
Oversight Board in accordance with section 101, sub-
mitted, 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 
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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
STAND-
ARDS.—The term ‘‘modified accrual accounting 
standards’’ means recognizing revenues as they be-
come available and measurable and recognizing ex-
penditures when liabilities are incurred, in each case 
as defined by the Governmental Accounting Stand-
ards Board, in accordance with generally accepted ac-
counting principles. 
(17) OVERSIGHT BOARD.—The term ‘‘Oversight 
Board’’ means a Financial Oversight and Manage-
ment 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 in-
strumentalities. 
(19) TERRITORIAL INSTRUMENTALITY.— 
(A) IN GENERAL.—The term ‘‘territorial in-
strumentality’’ means any political subdivision, 
public agency, instrumentality–including any 
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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 in-
strumentality’’ 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 ‘‘Ter-
ritory Fiscal Plan’’ means a fiscal plan for a terri-
torial government submitted, approved, and certified 
in accordance with section 201. 
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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 instru-
mentality thereof, from compliance with Federal laws or re-
quirements or territorial laws and requirements imple-
menting a federally authorized or federally delegated pro-
gram protecting the health, safety, and environment of per-
sons in such territory. 
TITLE I—ESTABLISHMENT AND 
ORGANIZATION 
OF 
OVER-
SIGHT 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) IN GENERAL.—Except as provided in para-
graph (2), a Financial Oversight and Management 
Board for a territory is established in accordance 
with this section only if the Legislature of the terri-
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tory adopts a resolution signed by the Governor re-
questing the establishment. 
(2) PUERTO RICO.—Notwithstanding paragraph 
(1), a Financial Oversight and Management Board is 
hereby established for Puerto Rico. 
(3) CONSTITUTIONAL BASIS.—The Congress en-
acts 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 terri-
torial government for which it is established in ac-
cordance with this title; and 
(2) shall not be considered to be a department, 
agency, establishment, or instrumentality of the Fed-
eral Government. 
(d) OVERSIGHT
OF TERRITORIAL INSTRUMENTAL-
ITIES.— 
(1) DESIGNATION.— 
(A) IN GENERAL.—An Oversight Board, in 
its sole discretion at such time as the Oversight 
Board determines to be appropriate, may des-
ignate any territorial instrumentality as a cov-
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any territorial instrumentality from the require-
ments of this Act. 
(B) TREATMENT.—A territorial instrumen-
tality excluded pursuant to this paragraph shall 
not be considered to be a covered territorial in-
strumentality. 
(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 mem-
ber, one Category E member, and one Category 
F member. 
(2) APPOINTED MEMBERS.— 
(A) The President shall appoint the indi-
vidual 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 Representa-
tives; 
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(ii) the Category B member should be 
selected from a separate 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 Major-
ity Leader of the Senate; 
(iv) the Category D member should be 
selected from a list submitted by the Minor-
ity Leader of the House of Representatives; 
(v) the Category E member should be 
selected from a list submitted by the Minor-
ity Leader of the Senate; and 
(vi) the Category F member may be se-
lected in the President’s sole discretion. 
(B) After the President’s selection of the 
Category F Board member, for purposes of sub-
paragraph (A) and within a timely manner— 
(i) the Speaker of the House of Rep-
resentatives shall submit two non-overlap-
ping lists of at least three individuals to the 
President; one list shall include three indi-
viduals who maintain a primary residence 
in the territory or have a primary place of 
business in the territory; 
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(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 individ-
uals 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. 
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(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 sub-
section within a timely manner of the Board 
member’s resignation or removal becoming effec-
tive. 
(G) With respect to an Oversight Board for 
Puerto Rico, in the event any of the 7 members 
have not been appointed by September 30, 2016, 
then the President shall appoint an individual 
from the list for the current vacant category by 
December 1, 2016, provided that such list in-
cludes 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 Over-
sight 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. 
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(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 SUC-
CESSOR 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 com-
pliance 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, mu-
nicipal bond markets, management, law, or the orga-
nization or operation of business or government; and 
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(2) prior to appointment, an individual is not 
an officer, elected official, or employee of the terri-
torial 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 BUSI-
NESS 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 Over-
sight Board may hire professionals as it determines 
to be necessary to carry out this subsection. 
(2) ACTIVITIES REQUIRING APPROVAL OF MAJOR-
ITY OF MEMBERS.—Under the bylaws adopted pursu-
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ant to paragraph (1), the Oversight Board may con-
duct its operations under such procedures as it con-
siders 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 infra-
structure 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 exec-
utive session that consists solely of the Oversight 
Board’s voting members and is closed to the public, 
but only for the business items set forth as part of the 
vote to convene an executive session. 
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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 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 unless the Oversight Board provides 
for otherwise. The staff shall include a Revitalization Coor-
dinator 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 govern-
ment, provided, however, that the Executive Director may 
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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 re-
quest 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 depart-
ment or agency to the Oversight Board to assist it in car-
rying out its duties under this Act. 
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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 mem-
ber 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.—Notwith-
standing sections 552 (commonly known as the Free-
dom 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 depart-
ment or agency. 
(2) FROM TERRITORIAL GOVERNMENT.—Notwith-
standing any other provision of law, the Oversight 
Board shall have the right to secure copies, whether 
written or electronic, of such records, documents, in-
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formation, data, or metadata from the territorial gov-
ernment necessary to enable the Oversight Board to 
carry out its responsibilities under this Act. At the re-
quest of the Oversight Board, the Oversight Board 
shall be granted direct access to such information sys-
tems, records, documents, information, or data as will 
enable the Oversight Board to carry out its respon-
sibilities under this Act. The head of the entity of the 
territorial government responsible shall provide the 
Oversight Board with such information and assist-
ance (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 seek-
ing to participate in voluntary negotiations shall pro-
vide to the Oversight Board, and the Oversight Board 
shall make publicly available to any other partici-
pant, a statement setting forth— 
(A) the name and address of the creditor or 
of each member of an organized group of credi-
tors; and 
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(B) the nature and aggregate amount of 
claims or other economic interests held in rela-
tion 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 com-
mon interests, including, but not limited to, re-
taining legal counsel to represent such multiple 
entities; and 
(B) not composed entirely of affiliates or in-
siders of one another. 
(3) The Oversight Board may request supple-
mental statements to be filed by each creditor or orga-
nized group of creditors quarterly, or if any fact in 
the most recently filed statement has changed materi-
ally. 
(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 
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the purpose of aiding or facilitating the work of the Over-
sight Board. Gifts, bequests, or devises of money and pro-
ceeds from sales of other property received as gifts, bequests, 
or devises shall be deposited in such account as the Over-
sight Board may establish and shall be available for dis-
bursement 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 testi-
mony of witnesses and the production of books, 
records, correspondence, memoranda, papers, docu-
ments, electronic files, metadata, tapes, and materials 
of any nature relating to any matter under investiga-
tion 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 cov-
ered 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 
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(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 sub-
poenas issued by the court of first instance of the cov-
ered territory. 
(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) 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 partici-
pating in a strike or lockout. In the application of this sub-
section, with respect to Puerto Rico, the term ‘‘applicable 
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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 de-
termines, in its sole discretion, that such covered ter-
ritory or covered territorial instrumentality, as appli-
cable, 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 cer-
tified, in a manner that provides for a sustain-
able level of debt for such covered territory or 
covered territorial instrumentality, as applica-
ble, 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 sustain-
able level of debt for such covered territory or 
covered territorial instrumentality; or 
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(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 prin-
cipal maturities and interest on Bonds issued by 
such covered territory or covered territorial in-
strumentality, 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 vol-
untary agreement. 
(2) EFFECTIVENESS.—The effectiveness of any 
voluntary agreement referred to in paragraph (1) 
shall be conditioned on— 
(A) the Oversight Board delivering the cer-
tification 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 
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territorial instrumentality that have not assented 
to such agreement. 
(3) PREEXISTING
VOLUNTARY
AGREEMENTS.— 
Any voluntary agreements that the territorial govern-
ment or any covered territorial instrumentality has 
executed with holders of its debts to restructure such 
debts prior to the date of enactment of the Act shall 
be deemed to be in conformance with the requirements 
of this subsection, to the extent the requirements of 
paragraph (2)(B)(i) have been satisfied. 
(j) RESTRUCTURING FILINGS.— 
(1) IN GENERAL.—Subject to paragraph (3), be-
fore 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 adjust-
ment only if it determines, in its sole discretion, that 
it is consistent with the applicable certified Fiscal 
Plan. 
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(k) CIVIL ACTIONS TO ENFORCE POWERS.—The Over-
sight 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 Over-
sight 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 imme-
diately advise the Oversight Board or its agents there-
of in writing, shall be subject to prosecution and pen-
alties 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 em-
ployee 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 appro-
priate administrative discipline, including (when ap-
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propriate) suspension from duty without pay or re-
moval from office, by order of the Governor. 
(3) REPORT BY GOVERNOR ON DISCIPLINARY AC-
TIONS TAKEN.—In the case of a violation of para-
graph (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 Gen-
eral Services or other appropriate Federal agencies shall 
promptly provide to the Oversight Board, on a reimbursable 
or non-reimbursable basis, the administrative support serv-
ices necessary for the Oversight Board to carry out its re-
sponsibilities under this Act. 
(o) INVESTIGATION
OF DISCLOSURE
AND SELLING 
PRACTICES.—The Oversight Board may investigate the dis-
closure and selling practices in connection with the pur-
chase of bonds issued by the Government of Puerto Rico for 
or on behalf of any retail investors including any underrep-
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resentation 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 ter-
ritorial 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 
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issued pursuant to an action brought under subsection (a) 
shall be subject to review only pursuant to a notice of ap-
peal 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 en-
tered its final order disposing of such action. 
(d) EXPEDITED CONSIDERATION.—It shall be the duty 
of the applicable United States District Court, the applica-
ble United States Court of Appeals, and, as applicable, the 
Supreme Court of the United States to advance on the dock-
et and to expedite to the greatest possible extent the disposi-
tion of any matter brought under this Act. 
(e) 
REVIEW
OF
OVERSIGHT
BOARD
CERTIFI-
CATIONS.—There shall be no jurisdiction in any United 
States district court to review challenges to the Oversight 
Board’s certification determinations under this Act. 
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SEC. 107. BUDGET AND FUNDING FOR OPERATION OF OVER-
SIGHT 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 pow-
ers with respect to the Territory Budget of the covered terri-
tory to ensure that sufficient funds are available to cover 
all expenses of the Oversight Board. 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. 
SEC. 108. AUTONOMY OF OVERSIGHT BOARD. 
(a) IN GENERAL.—Neither the Governor nor the Legis-
lature may— 
(1) exercise any control, supervision, oversight, 
or review over the Oversight Board or its activities; 
or 
(2) enact, implement, or enforce any statute, res-
olution, policy, or rule that would impair or defeat 
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the purposes of this Act, as determined by the Over-
sight Board. 
(b) OVERSIGHT BOARD LEGAL REPRESENTATION.—In 
any action brought by or on behalf of the Oversight Board, 
the Oversight Board shall be represented by such counsel 
as it may hire or retain so long as no conflict of interest 
exists. 
SEC. 109. ETHICS. 
(a) CONFLICT OF INTEREST.—Notwithstanding any 
ethics provision governing employees of the covered terri-
tory, 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 terri-
tory, all members of the Oversight Board and staff des-
ignated by the Oversight Board shall be subject to disclosure 
of their financial interests, the contents of which shall con-
form 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 Over-
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sight 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 ac-
counting standards and be based on— 
(i) applicable laws; or 
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(ii) specific bills that require enact-
ment in order to reasonably achieve the pro-
jections 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 ef-
fective, provide for a debt burden that is sustain-
able; 
(F) improve fiscal governance, account-
ability, 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 in-
vestments necessary to promote economic growth; 
(K) adopt appropriate recommendations 
submitted by the Oversight Board under section 
205(a); 
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(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 con-
stitution, 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 deter-
mined 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 CERTIFI-
CATION OF FISCAL PLANS.— 
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(1) TIMING REQUIREMENT.—The Governor may 
not submit to the Legislature a Territory Budget 
under section 202 for a fiscal year unless the Over-
sight 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 require-
ments set forth in subsection (b) and, if the Oversight 
Board determines in its sole discretion that the pro-
posed Fiscal Plan— 
(A) satisfies such requirements, the Over-
sight Board shall approve the proposed Fiscal 
Plan; or 
(B) does not satisfy such requirements, the 
Oversight Board shall provide to the Governor— 
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(i) a notice of violation that includes 
recommendations for revisions to the appli-
cable Fiscal Plan; and 
(ii) an opportunity to correct the vio-
lation in accordance with subsection (d)(1). 
(d) REVISED FISCAL PLAN.— 
(1) IN GENERAL.—If the Governor receives a no-
tice of violation under subsection (c)(3), the Governor 
shall submit to the Oversight Board a revised pro-
posed Fiscal Plan in accordance with subsection (b) 
by the time specified in the notice delivered under 
subsection (a). The Governor may submit as many re-
vised Fiscal Plans to the Oversight Board as the 
schedule established in the notice delivered under sub-
section (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 Leg-
islature a Fiscal Plan that satisfies the requirements 
set forth in subsection (b). 
(e) APPROVAL AND CERTIFICATION.— 
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(1) APPROVAL OF FISCAL PLAN DEVELOPED BY 
GOVERNOR.—If the Oversight Board approves a Fis-
cal 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 DEVEL-
OPED BY OVERSIGHT BOARD.—If the Oversight Board 
develops a Fiscal Plan under subsection (d)(2), such 
Fiscal Plan shall be deemed approved by the Gov-
ernor, and the Oversight Board shall issue a compli-
ance certification for such Fiscal Plan to the Gov-
ernor and the Legislature. 
(f) JOINT DEVELOPMENT OF FISCAL PLAN.—Notwith-
standing 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 sec-
tion, and that the Governor and the Oversight Board certify 
that the fiscal plan reflects a consensus between the Gov-
ernor and the Oversight Board, then such Fiscal Plan shall 
serve as the Fiscal Plan for the territory or territorial in-
strumentality 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 
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in the fiscal year in which the Oversight Board is estab-
lished, 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 pro-
viding a schedule for developing, submitting, approving, 
and certifying Budgets for a period of fiscal years as deter-
mined 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 Over-
sight 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 reve-
nues for the period covered by the Budgets by the time speci-
fied in the notice delivered under subsection (a), for use by 
the Governor in developing the Budget under subsection (c). 
(c) BUDGETS DEVELOPED BY GOVERNOR.— 
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(1) GOVERNOR’S
PROPOSED
BUDGETS.—The 
Governor shall submit to the Oversight Board pro-
posed Budgets by the time specified in the notice de-
livered under subsection (a). In consultation with the 
Governor in accordance with the process specified in 
the notice delivered under subsection (a), the Over-
sight 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 Budg-
et, submit the Territory Budget to the Leg-
islature; or 
(B) if the Oversight Board determines that 
the Budget is not a compliant budget, the Over-
sight Board shall provide to the Governor— 
(i) a notice of violation that includes a 
description of any necessary corrective ac-
tion; and 
(ii) an opportunity to correct the vio-
lation in accordance with paragraph (2). 
(2) GOVERNOR’S REVISIONS.—The Governor may 
correct any violations identified by the Oversight 
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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 Over-
sight 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 Budg-
et, and to the Governor and the Legislature, in the 
case of a Territory Budget, a revised compliant budg-
et. 
(d) BUDGET APPROVAL BY LEGISLATURE.— 
(1) LEGISLATURE ADOPTED BUDGET.—The Leg-
islature shall submit to the Oversight Board the Ter-
ritory 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 compli-
ant budget pursuant to subsection (e); and 
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(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 ac-
tion; and 
(ii) an opportunity to correct the vio-
lation 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 estab-
lished under paragraph (1) and by the time specified 
in the notice delivered under subsection (a). The Leg-
islature may submit as many revised adopted Terri-
tory Budgets to the Oversight Board as the schedule 
established in the notice delivered under subsection 
(a) permits. If the Legislature fails to adopt a Terri-
tory 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.— 
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(1) CERTIFICATION
OF
DEVELOPED
AND
AP-
PROVED 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 INSTRUMEN-
TALITY BUDGETS.—If the Governor develops an In-
strumentality 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 com-
pliance certification to the Governor for such Instru-
mentality 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 de-
veloped, the Oversight Board shall submit a Budget to 
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the Governor and the Legislature (including any revi-
sion to the Territory Budget made by the Oversight 
Board pursuant to subsection (d)(2)) and such Budg-
et 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
INSTRUMEN-
TALITY 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 
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(C) in full force and effect beginning on the 
first day of the applicable fiscal year. 
(f) JOINT DEVELOPMENT
OF BUDGETS.—Notwith-
standing 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 de-
velop such Budget for the fiscal year that meets the require-
ments under this section, and that the relevant parties cer-
tify 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 (be-
ginning 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 reve-
nues, expenditures, and cash flows contained in the 
certified Budget for such preceding quarter; and 
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(2) any other information requested by the Over-
sight Board, which may include a balance sheet or a 
requirement that the Governor provide information 
for each covered territorial instrumentality sepa-
rately. 
(b) INITIAL ACTION BY OVERSIGHT BOARD.— 
(1) IN GENERAL.—If the Oversight Board deter-
mines, 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 con-
sistent 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 Over-
sight Board determines to be necessary to ex-
plain the inconsistency; and 
(B) if the additional information provided 
under subparagraph (A) does not provide an ex-
planation for the inconsistency that the Over-
sight Board finds reasonable and appropriate, 
advise the territorial government to correct the 
inconsistency by implementing remedial action. 
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(2) DEADLINES.—The Oversight Board shall es-
tablish the deadlines by which the territorial govern-
ment shall meet the requirements of subparagraphs 
(A) and (B) of paragraph (1). 
(c) CERTIFICATION.— 
(1) INCONSISTENCY.—If the territorial govern-
ment fails to provide additional information under 
subsection (b)(1)(A), or fails to correct an inconsist-
ency under subsection (b)(1)(B), prior to the applica-
ble 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 cer-
tified Budget, and shall describe the nature and 
amount of the inconsistency. 
(2) CORRECTION.—If the Oversight Board deter-
mines that the territorial government has initiated 
such measures as the Oversight Board considers suffi-
cient to correct an inconsistency certified under para-
graph (1), the Oversight Board shall certify the cor-
rection to the President, the House of Representatives 
Committee on Natural Resources, the Senate Com-
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mittee on Energy and Natural Resources, the Gov-
ernor, 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 Budg-
ets, 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 en-
sure that the actual quarterly revenues and expendi-
tures 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 Gov-
ernor and the Legislature; and 
(2) with respect to covered territorial instrumen-
talities at the sole discretion of the Oversight Board— 
(A) make reductions in nondebt expendi-
tures to ensure that the actual quarterly revenues 
and expenses for the covered territorial instru-
mentality are in compliance with the applicable 
certified Budget or, in the case of the fiscal year 
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in which the Oversight Board is established, the 
budget adopted by the Governor and the Legisla-
ture 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 instru-
mentality from entering into any contract or en-
gaging 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 instrumen-
tality, as applicable, has initiated appropriate measures to 
reduce expenditures or increase revenues to ensure that the 
territorial government or covered territorial instrumen-
tality 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. 
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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 busi-
ness days after a territorial government duly enacts 
any law during any fiscal year in which the Over-
sight Board is in operation, the Governor shall sub-
mit the law to the Oversight Board. 
(2) COST ESTIMATE; CERTIFICATION OF COMPLI-
ANCE OR NONCOMPLIANCE.—The Governor shall in-
clude with each law submitted to the Oversight Board 
under paragraph (1) the following: 
(A) A formal estimate prepared by an ap-
propriate entity of the territorial government 
with expertise in budgets and financial manage-
ment 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 sig-
nificantly inconsistent with the Fiscal Plan for 
the fiscal year, it shall issue a certification of 
such finding. 
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(C) If the appropriate entity described in 
subparagraph (A) finds that the law is signifi-
cantly 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 Legisla-
ture if— 
(A) the Governor submits a law to the Over-
sight Board under this subsection that is not ac-
companied by the estimate required under para-
graph (2)(A); 
(B) the Governor submits a law to the Over-
sight Board under this subsection that is not ac-
companied by either a certification described in 
paragraph (2)(B) or (2)(C); or 
(C) the Governor submits a law to the Over-
sight Board under this subsection that is accom-
panied by a certification described in paragraph 
(2)(C) that the law is significantly inconsistent 
with the Fiscal Plan. 
(4) OPPORTUNITY
TO
RESPOND
TO
NOTIFICA-
TION.— 
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(A) FAILURE
TO
PROVIDE
ESTIMATE
OR 
CERTIFICATION.—After sending a notification to 
the Governor and the Legislature under para-
graph (3)(A) or (3)(B) with respect to a law, the 
Oversight Board may direct the Governor to pro-
vide the missing estimate or certification (as the 
case may be), in accordance with such proce-
dures as the Oversight Board may establish. 
(B) SUBMISSION OF CERTIFICATION OF SIG-
NIFICANT
INCONSISTENCY
WITH
FISCAL
PLAN 
AND BUDGET.—In accordance with such proce-
dures as the Oversight Board may establish, after 
sending a notification to the Governor and Leg-
islature 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 in-
consistency; or 
(ii) provide an explanation for the in-
consistency that the Oversight Board finds 
reasonable and appropriate. 
(5) FAILURE TO COMPLY.—If the territorial gov-
ernment fails to comply with a direction given by the 
Oversight Board under paragraph (4) with respect to 
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a law, the Oversight Board may take such actions as 
it considers necessary, consistent with this Act, to en-
sure that the enactment or enforcement of the law will 
not adversely affect the territorial government’s com-
pliance 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 legis-
lation 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 subse-
quently submitted under this subsection. 
(b) EFFECT OF APPROVED FISCAL PLAN ON CON-
TRACTS, RULES, AND REGULATIONS.— 
(1) TRANSPARENCY IN CONTRACTING.—The Over-
sight Board shall work with a covered territory’s of-
fice of the comptroller or any functionally equivalent 
entity to promote compliance with the applicable law 
of any covered territory that requires agencies and in-
strumentalities of the territorial government to main-
tain a registry of all contracts executed, including 
amendments thereto, and to remit a copy to the office 
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of the comptroller for inclusion in a comprehensive 
database available to the public. With respect to Puer-
to Rico, the term ‘‘applicable law’’ refers to 2 
L.P.R.A. 97, as amended. 
(2) AUTHORITY
TO
REVIEW
CERTAIN
CON-
TRACTS.—The Oversight Board may establish policies 
to require prior Oversight Board approval of certain 
contracts, including leases and contracts to a govern-
mental entity or government-owned corporations rath-
er than private enterprises that are proposed to be ex-
ecuted 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 Over-
sight Board pursuant to paragraph (2) should be de-
signed 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 pri-
vate enterprise, and to avoid creating any additional 
bureaucratic obstacles to efficient contracting. 
(4) AUTHORITY
TO
REVIEW
CERTAIN
RULES, 
REGULATIONS, AND EXECUTIVE ORDERS.—The provi-
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sions 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 depart-
ment 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 sub-
mit its analysis to the Legislature as soon as prac-
ticable after receiving the request. 
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(2) NO ACTION PERMITTED UNTIL ANALYSIS RE-
CEIVED.—The Legislature shall not adopt a re-
programming, and no officer or employee of the terri-
torial government may carry out any reprogram-
ming, until the Oversight Board has provided the 
Legislature with an analysis that certifies such re-
programming will not be inconsistent with the Fiscal 
Plan and Budget. 
(3) PROHIBITION ON ACTION UNTIL OVERSIGHT 
BOARD IS APPOINTED.—During the period after a ter-
ritory 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 au-
thorizing the movement of funds or assets during this 
time period may be subject to review and reversal by 
the Oversight Board upon appointment of the Over-
sight Board’s full membership. 
(d) IMPLEMENTATION OF FEDERAL PROGRAMS.—In 
taking actions under this Act, the Oversight Board shall 
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not exercise applicable authorities to impede territorial ac-
tions 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 pro-
grams; 
(2) implement a federally authorized or federally 
delegated program; or 
(3) implement territorial laws, which are con-
sistent with a certified Fiscal Plan, that execute Fed-
eral requirements and standards. 
SEC. 205. RECOMMENDATIONS ON FINANCIAL STABILITY 
AND MANAGEMENT RESPONSIBILITY. 
(a) IN GENERAL.—The Oversight Board may at any 
time submit recommendations to the Governor or the Legis-
lature on actions the territorial government may take to 
ensure compliance with the Fiscal Plan, or to otherwise pro-
mote the financial stability, economic growth, management 
responsibility, and service delivery efficiency of the terri-
torial government, including recommendations relating 
to— 
(1) the management of the territorial govern-
ment’s financial affairs, including economic fore-
casting and multiyear fiscal forecasting capabilities, 
information technology, placing controls on expendi-
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tures 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 terri-
torial government; 
(3) the modification of existing revenue struc-
tures, or the establishment of additional revenue 
structures; 
(4) the establishment of alternatives for meeting 
obligations to pay for the pensions of territorial gov-
ernment employees; 
(5) modifications or transfers of the types of 
services that are the responsibility of, and are deliv-
ered by the territorial government; 
(6) modifications of the types of services that are 
delivered by entities other than the territorial govern-
ment 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 
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improvement of training and performance of manage-
ment and supervisory personnel; and 
(10) the privatization and commercialization of 
entities within the territorial government. 
(b) RESPONSE TO RECOMMENDATIONS BY THE TERRI-
TORIAL GOVERNMENT.— 
(1) IN
GENERAL.—In the case of any rec-
ommendations 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 rec-
ommendation) shall submit a statement to the Over-
sight Board that provides notice as to whether the ter-
ritorial 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 terri-
torial government will adopt any of the recommenda-
tions submitted under subsection (a), the Governor or 
the Legislature (whichever is applicable) shall include 
in the statement a written plan to implement the rec-
ommendation that includes— 
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(A) specific performance measures to deter-
mine the extent to which the territorial govern-
ment has adopted the recommendation; and 
(B) a clear and specific timetable pursuant 
to which the territorial government will imple-
ment the recommendation. 
(3) 
EXPLANATIONS
REQUIRED
FOR
REC-
OMMENDATIONS NOT ADOPTED.—If the Governor or 
the Legislature (whichever is applicable) notifies the 
Oversight Board under paragraph (1) that the terri-
torial government will not adopt any recommenda-
tion submitted under subsection (a) that the terri-
torial government has authority to adopt, the Gov-
ernor 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 Con-
gress. 
SEC. 206. OVERSIGHT BOARD DUTIES RELATED TO RE-
STRUCTURING. 
(a) REQUIREMENTS FOR RESTRUCTURING CERTIFI-
CATION.—The Oversight Board, prior to issuing a restruc-
turing 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— 
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(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 inter-
ested 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 instrumen-
tality that has adopted an Instrumentality Fiscal 
Plan certified by the Oversight Board; and 
(4)(A) no order approving a Qualifying Modi-
fication under section 601 has been entered with re-
spect to such entity; or 
(B) if an order approving a Qualifying Modi-
fication has been entered with respect to such entity, 
the entity is unable to make its debt payments not-
withstanding the approved Qualifying Modification, 
in which case, all claims affected by the Qualifying 
Modification shall be subject to a title III case. 
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(b) ISSUANCE OF RESTRUCTURING CERTIFICATION.— 
The issuance of a restructuring certification under this sec-
tion requires a vote of no fewer than 5 members of the Over-
sight Board in the affirmative, which shall satisfy the re-
quirement 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 oper-
ation, no territorial government may, without the prior ap-
proval of the Oversight Board, issue debt or guarantee, ex-
change, 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 govern-
ment 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 Con-
gress on changes to this Act or other Federal laws, or 
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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 ap-
plicable, section 104(e) have been spent by the Over-
sight 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 dis-
cretionary tax abatement or similar tax relief agree-
ments, 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 
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(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 regu-
lations regarding the handling of confidential tax-
payer information. 
(c) QUARTERLY REPORTS OF CASH FLOW.—The Over-
sight 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 instru-
ments for money borrowed whose enforcement is subject to 
a stay or moratorium hereunder, together with any vari-
ance 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 bor-
rowing 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 
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(B) the expenditures made by the territorial 
government during each fiscal year did not ex-
ceed 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 prin-
cipal of or interest on any bond, note, or other obligation 
issued by a covered territory or covered territorial instru-
mentality. 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 deter-
mines, in its sole discretion, that a pension system of the 
territorial government is materially underfunded, the Over-
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sight Board shall conduct an analysis prepared by an inde-
pendent actuary of such pension system to assist the Over-
sight 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 pay-
ments; 
(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 infor-
mation regarding the fair market value and liabilities 
using an appropriate discount rate as determined by the 
Oversight Board. 
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SEC. 212. INTERVENTION IN LITIGATION. 
(a) INTERVENTION.—The Oversight Board may inter-
vene in any litigation filed against the territorial govern-
ment. 
(b) INJUNCTIVE RELIEF.— 
(1) IN GENERAL.—If the Oversight Board inter-
venes in a litigation under subsection (a), the Over-
sight 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), 
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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 instru-
mentality; and 
(B) for a territorial instrumentality, the 
governing territory and any of the other terri-
torial instrumentalities of the territory. 
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(2) DEBTOR.—The term ‘‘debtor’’ means the ter-
ritory or covered territorial instrumentality con-
cerning which a case under this title has been com-
menced. 
(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 ap-
plicable 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 Terri-
torial Instrumentality of the Territory Govern-
ment Issuer, provided that the beneficiaries of 
such claims, to the extent they are not referenced 
in this subparagraph, shall not be excluded; and 
(B) with reference to Insured Bonds, shall 
mean the monoline insurer insuring such In-
sured 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 In-
sured Bond was issued and insured. 
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(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 applica-
ble in a case under this title by subsection (a) means 
State or territory when used in reference to the rela-
tionship 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 ap-
plicable in a case under this title by subsection (a), 
means the Oversight Board, except as provided in sec-
tion 926 of title 11, United States Code. 
(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 sub-
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section (a) or to ‘‘this title’’, ‘‘title 11’’, ‘‘Chapter 9’’, ‘‘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 wheth-
er claims are ‘‘substantially similar’’ for the purpose of sec-
tion 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 estab-
lishment 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); 
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(2) the Oversight Board has issued a certifi-
cation 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 CON-
TROL TERRITORY AND TERRITORIAL INSTRU-
MENTALITIES. 
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 expendi-
tures for such exercise, whether or not a case has been or 
can be commenced under this title, but— 
(1) a territory law prescribing a method of com-
position 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; 
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(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 PETI-
TION. 
(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 dis-
miss the petition if the petition does not meet the require-
ments 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, 
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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 PER-
MITTED.—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 au-
thorizing 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 en-
vironment, public health or safety, or territorial laws im-
plementing such Federal legal provisions. This includes 
compliance obligations, requirements under consent decrees 
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or judicial orders, and obligations to pay associated admin-
istrative, 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 con-
senting 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 in-
come-producing property. 
SEC. 306. JURISDICTION. 
(a) FEDERAL SUBJECT MATTER JURISDICTION.—The 
district courts shall have— 
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(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 not-
withstanding any Act of Congress that confers exclu-
sive 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 pro-
ceeding 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 dis-
trict 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. 
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(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 sub-
section remanding a claim or cause of action, or a de-
cision 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 aris-
ing in or related to a case under this title, to the dis-
trict court in which the case under this title is pend-
ing. 
(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. 
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(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 ap-
peals 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 ques-
tion of law as to which there is no control-
ling decision of the court of appeals for the 
circuit or of the Supreme Court of the 
United States, or involves a matter of pub-
lic importance; 
(ii) the order or decree involves a ques-
tion of law requiring the resolution of con-
flicting 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 di-
rect 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 
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(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 certifi-
cation issued by the district court under paragraph 
(3)(A). 
(6) Except as provided in section 304(d), an ap-
peal 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.—Notwith-
standing 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— 
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(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 instru-
mentality, the district court for the territory in which 
the covered territorial instrumentality is located or, 
for any territory that does not have a district court, 
the United States District Court for the District of 
Hawaii. 
(b) ALTERNATIVE VENUE.—If the Oversight Board so 
determines in its sole discretion, then venue shall be proper 
in the district court for the jurisdiction in which the Over-
sight Board maintains an office that is located outside the 
territory. 
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 
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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 par-
ticular 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 appro-
priate 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, 
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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 certifi-
cation pursuant to section 104(j) of this Act, may modify 
the plan at any time before confirmation, but may not mod-
ify 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 tak-
ing any action necessary to carry out the plan; 
(4) except to the extent that the holder of a par-
ticular 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 spec-
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ified in 507(a)(2) of title 11, United States Code, will 
receive on account of such claim cash equal to the al-
lowed amount of such claim; 
(5) any legislative, regulatory, or electoral ap-
proval necessary under applicable law in order to 
carry out any provision of the plan has been ob-
tained, 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 IMPAIRED CREDITORS.—If all of the require-
ments 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 substan-
tially similar under section 301(e) of this title; 
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(2) that includes only one class of impaired 
claims; and 
(3) that was not accepted by such impaired 
class, 
the court shall confirm the plan notwithstanding the re-
quirements of such sections 1129(a)(8) and 1129(a)(10) of 
title 11, United States Code if the plan is fair and equitable 
with respect to such impaired class. 
SEC. 315. ROLE AND CAPACITY OF OVERSIGHT BOARD. 
(a) ACTIONS OF OVERSIGHT BOARD.—For the pur-
poses 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 adjust-
ment under sections 312 and 313; or 
(3) otherwise generally submitting filings in re-
lation 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 
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to a professional person employed by the debtor (in the debt-
or’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 attor-
ney 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 com-
pensation that is requested. 
(c) In determining the amount of reasonable com-
pensation 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, includ-
ing— 
(1) the time spent on such services; 
(2) the rates charged for such services; 
(3) whether the services were necessary to the ad-
ministration of, or beneficial at the time at which the 
service was rendered toward the completion of, a case 
under this chapter; 
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(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 dem-
onstrated skill and experience in the restructuring 
field; and 
(6) whether the compensation is reasonable based 
on the customary compensation charged by com-
parably 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. 
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(f) Any compensation awarded for the preparation of 
a fee application shall be based on the level and skill reason-
ably required to prepare the application. 
SEC. 317. INTERIM COMPENSATION. 
A debtor’s attorney, or any professional person em-
ployed 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 in-
curred 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; 
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(2) to authorize the application of section 104(f) 
of this Act (relating to issuance of subpoenas) to judi-
cial 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 FU-
TURE 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, Man-
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agement, 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 em-
ployed after the date of enactment of such Act a wage which 
is not less than the wage described in paragraph (1). Not-
withstanding the time period designated, such wage shall 
not continue in effect after such Board terminates in ac-
cordance with section 209 of such Act. 
‘‘(3) No employer may take any action to displace em-
ployees (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). 
‘‘(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, out-
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side sales, and computer employees, and published in a no-
tice 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 re-
quired 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 ap-
plying 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 Comp-
troller General shall examine the economic conditions in 
Puerto Rico and shall transmit a report to Congress assess-
ing the impact of applying the regulations described in sub-
section (a) to Puerto Rico, taking into consideration re-
gional, 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 
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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, obli-
gation of insurance, or other financial indebtedness 
for borrowed money, including rights, entitlements, or 
obligations whether such rights, entitlements, or obli-
gations 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 demate-
rialized form, of which— 
(A) the issuer, obligor, or guarantor is the 
Government of Puerto Rico; and 
(B) the date of issuance or incurrence pre-
cedes the date of enactment of this Act. 
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(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, unliqui-
dated, 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 accord-
ance 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, includ-
ing the issuance or employment of process, of a judi-
cial, 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 
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Government of Puerto Rico that arose before the en-
actment 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 enact-
ment 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 Liabil-
ity 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 Govern-
ment of Puerto Rico that arose before the enactment 
of this Act against any Liability Claim against the 
Government of Puerto Rico. 
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(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 em-
ployment of process, of a judicial, administrative, or 
other action or proceeding against the Government of 
Puerto Rico that was commenced on or before Decem-
ber 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, 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 
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100 
(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 additional 
75 days are needed to seek to complete a vol-
untary process under title VI of this Act with re-
spect to the government of the Commonwealth of 
Puerto Rico or any of its territorial instrumen-
talities; 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 ter-
ritorial 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 
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101 
or on behalf of the government of the Commonwealth 
of Puerto Rico or any of its territorial instrumental-
ities, as applicable, under title III. 
(e) JURISDICTION, RELIEF FROM STAY.— 
(1) The United States District Court for the Dis-
trict of Puerto Rico shall have original and exclusive 
jurisdiction of any civil actions arising under or re-
lated 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 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 prelimi-
nary hearing, or may be consolidated with the final hearing 
under subsection (e)(2). The court shall order such stay con-
tinued in effect pending the conclusion of the final hearing 
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102 
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 thir-
ty-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 with-
out 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 in-
terest 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. 
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103 
(i) GOVERNMENT OF PUERTO RICO.—For purposes of 
this section, the term ‘‘Government of Puerto Rico’’, in ad-
dition 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 Li-
ability Claim or any other claim (as such term is de-
fined 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 restruc-
turing, insolvency, bankruptcy, or other pro-
ceeding (or a similar or analogous process) by, 
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104 
the Government of Puerto Rico, including a de-
fault 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 obli-
gation under such contract may not be terminated or 
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modified, solely because of a provision in such con-
tract 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 estab-
lishment of an Oversight Board pursuant to sec-
tion 101 of this Act; or 
(C) a default under a separate contract that 
is due to, triggered by, or a result of the occur-
rence 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 sec-
tion 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 obli-
gation of the Government of Puerto Rico or release, invali-
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date, or impair any security interest or lien securing such 
obligation. This section does not impair or affect the imple-
mentation of any restructuring support agreement executed 
by the Government of Puerto Rico to be implemented pursu-
ant 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, de-
termines 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. 
(2) As a result of its fiscal emergency, the Gov-
ernment of Puerto Rico has been unable to provide its 
citizens with effective services. 
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(3) The current fiscal emergency has also affected 
the long-term economic stability of Puerto Rico by 
contributing to the accelerated outmigration of resi-
dents and businesses. 
(4) A comprehensive approach to fiscal, manage-
ment, and structural problems and adjustments that 
exempts no part of the Government of Puerto Rico is 
necessary, involving independent oversight and a Fed-
eral statutory authority for the Government of Puerto 
Rico to restructure debts in a fair and orderly proc-
ess. 
(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 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 effec-
tiveness or upon expiration of the stay. 
(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 op-
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portunity to consensually renegotiate terms of re-
payment 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 im-
mediate 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 cred-
itor lawsuits; 
(3) provide an oversight mechanism to assist the 
Government of Puerto Rico in reforming its fiscal 
governance and support the implementation of poten-
tial debt restructuring; 
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109 
(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 liabil-
ities; and 
(5) benefit the lives of 3.5 million American citi-
zens living in Puerto Rico by encouraging the Gov-
ernment of Puerto Rico to resolve its longstanding fis-
cal 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 pro-
posed 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 fol-
lows: ‘‘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 Gen-
eral 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 
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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 trans-
feree 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 ADMINISTRA-
TION PROGRAMS IN PUERTO RICO.—Not later than 180 
days 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 Represent-
atives and the Committee on Small Business and Entrepre-
neurship of the Senate a report on the application and uti-
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lization of contracting activities of the Administration (in-
cluding 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 Chair-
man 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 Chair-
man of the Committee on Ways and Means of the 
House of Representatives. 
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(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 Nat-
ural 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 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. 
(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-
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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 genera-
tion from oil to natural gas and renewables 
in Puerto Rico as defined under applicable 
Puerto Rico laws; 
(iv) promote the development and utili-
zation 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 re-
ducing 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 
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