dures apply with respect to the original financial 
plan and budget, except that subparagraph (B) of 
subsection (c)(1) (relating to deemed approval by 
the Council of a preliminary financial plan and 
budget of the Governor) shall be applied as if the 
reference to the term ‘‘30-day period’’ were a ref-
erence to ‘‘20-day period’’. 
(3) EXCEPTION FOR REVISIONS NOT AFFECT-
ING APPROPRIATIONS.—To the extent that a pro-
posed revision to a financial plan and budget adopt-
ed by the Legislative Assembly pursuant to this sub-
section does not increase the amount of spending 
with respect to any account of the Government of 
Puerto Rico, the revision shall become effective upon 
the Council’s approval of such revision. 
SEC. 203. RESTRICTIONS ON BORROWING BY PUERTO RICO. 
(a) IN GENERAL.—The Government of Puerto Rico 
may not borrow money unless the Council provides prior 
certification that both the receipt of funds through such 
borrowing and the repayment of obligations incurred 
through such borrowing are consistent with the financial 
plan and budget for the year. 
(b) REVISIONS TO FINANCIAL PLAN AND BUDGET 
PERMITTED.—If the Council determines that the bor-
rowing proposed to be undertaken by the Government of 
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Puerto Rico is not consistent with the financial plan and 
budget, the Governor may submit to the Council a pro-
posed revision to the financial plan and budget in accord-
ance with section 202(e) so that the borrowing will be con-
sistent with the financial plan and budget as so revised. 
(c) BORROWING DESCRIBED.—This section shall 
apply with respect to any borrowing undertaken by the 
Government of Puerto Rico. 
SEC. 204. EFFECT OF FINDING OF NONCOMPLIANCE WITH 
FINANCIAL PLAN AND BUDGET. 
(a) SUBMISSION OF REPORTS.—Not later than 30 
days after the expiration of each quarter of each fiscal 
year, the Governor shall submit reports to the Council de-
scribing the actual revenues obtained and expenditures 
made by the Government of Puerto Rico during the quar-
ter with its cash flows during the quarter, and comparing 
such actual revenues, expenditures, and cash flows with 
the most recent projections for these items. 
(b) DEMAND FOR ADDITIONAL INFORMATION.—If 
the Council determines, based on reports submitted by the 
Governor under subsection (a), independent audits, or 
such other information as the Council may obtain, that 
the revenues or expenditures of the Government of Puerto 
Rico are not consistent with the financial plan and budget 
for the year, the Council shall require the Governor to pro-
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vide such additional information as the Council determines 
to be necessary to explain the inconsistency. 
(c) CERTIFICATION OF VARIANCE.—After requiring 
the Governor to provide additional information under sub-
section (b), the Council shall certify to the Legislative As-
sembly, the President, and Congress that the Government 
of Puerto Rico is at variance with the financial plan and 
budget unless— 
(1)(A) the additional information provides an 
explanation for the inconsistency which the Council 
finds reasonable and appropriate; or 
(B) the Government of Puerto Rico adopts or 
implements remedial action (including revising the 
financial plan and budget pursuant to section 
202(e)) to correct the inconsistency which the Coun-
cil finds reasonable and appropriate, taking into ac-
count the terms of the financial plan and budget; 
and 
(2) the Governor agrees to submit the reports 
described in subsection (a) on a monthly basis for 
such period as the Council may require. 
(d) EFFECT OF CERTIFICATION.—If the Council cer-
tifies to the Secretary of the Treasury that a variance ex-
ists, the Secretary shall withhold funds otherwise payable 
to Puerto Rico under such Federal programs as the Coun-
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cil may specify (other than funds dedicated to making en-
titlement or benefit payments to individuals), in such 
amounts and under such other conditions as the Council 
may specify. 
SEC. 205. RECOMMENDATIONS ON FINANCIAL STABILITY 
AND MANAGEMENT RESPONSIBILITY. 
(a) IN GENERAL.—The Council may at any time sub-
mit recommendations to the Governor, the Legislative As-
sembly, the President, and Congress on actions the Gov-
ernment of Puerto Rico or the Federal Government may 
take to ensure compliance by the Government of Puerto 
Rico with a financial plan and budget or to otherwise pro-
mote the financial stability, management responsibility, 
and service delivery efficiency of the Government of Puer-
to Rico. 
(b) RESPONSE TO RECOMMENDATIONS FOR ACTIONS 
WITHIN
AUTHORITY
OF
GOVERNMENT
OF
PUERTO 
RICO.— 
(1) IN
GENERAL.—In the case of any rec-
ommendations submitted under subsection (a) which 
are within the authority of the Government of Puer-
to Rico to adopt, not later than 90 days after receiv-
ing the recommendations, the Governor or the Legis-
lative Assembly (whichever has the authority to 
adopt the recommendation) shall submit a statement 
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to the Council, the President, and Congress which 
provides notice as to whether the Government of 
Puerto Rico will adopt the recommendations. 
(2) IMPLEMENTATION
PLAN
REQUIRED
FOR 
ADOPTED RECOMMENDATIONS.—If the Governor or 
the Legislative Assembly (whichever is applicable) 
notifies the Council and Congress under paragraph 
(1) that the Government of Puerto Rico will adopt 
any of the recommendations submitted under sub-
section (a), the Governor or the Legislative Assem-
bly (whichever is applicable) shall include in the 
statement a written plan to implement the rec-
ommendation which includes— 
(A) specific performance measures to de-
termine the extent to which the Government of 
Puerto Rico has adopted the recommendation; 
and 
(B) a schedule for auditing the Govern-
ment of Puerto Rico’s compliance with the plan. 
(3) 
EXPLANATIONS
REQUIRED
FOR
REC-
OMMENDATIONS NOT ADOPTED.—If the Governor or 
the Legislative Assembly (whichever is applicable) 
notifies the Council, the President, and Congress 
under paragraph (1) that the Government of Puerto 
Rico will not adopt any recommendation submitted 
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under subsection (a) which the Government of Puer-
to Rico has authority to adopt, the Governor or the 
Legislative Assembly shall include in the statement 
explanations for the rejection of the recommenda-
tions. 
TITLE III—DEBT 
RESTRUCTURING 
SEC. 301. AMENDMENT. 
Section 101(52) of title 11, United States Code, is 
amended to read as follows: 
‘‘(52) The term ‘State’ includes Puerto Rico 
and, except for the purpose of defining who may be 
a debtor under chapter 9 of this title, includes the 
District of Columbia.’’. 
SEC. 302. EFFECTIVE DATE; APPLICATION OF AMENDMENT. 
(a) EFFECTIVE DATE.—Except as provided in sub-
section (b), this title and the amendment made by this 
title shall take effect on the date of the establishment of 
the Puerto Rico Financial Stability Council under section 
101(a) of this Act. 
(b) APPLICATION OF AMENDMENT.—The amendment 
made by this title shall apply with respect to— 
(1) cases commenced under title 11 of the 
United States Code on or after the date of the es-
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tablishment of the Puerto Rico Financial Stability 
Council under section 101(a) of this Act, and 
(2) debts, claims, and liens created before, on, 
or after such date. 
SEC. 303. SEVERABILITY. 
If any provision of this title or the application of such 
provision to any person or circumstance, is found to be 
unconstitutional, the remainder of this title, or the appli-
cation of that provision to other persons or circumstances, 
shall not be affected. 
Æ 
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