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. 
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. 
Sec. 411. Report on territorial debt. 
Sec. 412. Expansion of HUBZones in Puerto Rico. 
Sec. 413. Determination on debt. 
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.
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) cre-
ated before, on, or after such date. 
SEC. 3. SEVERABILITY. 
(a) IN GENERAL.—Except as provided in subsection 
(b), 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. 
(b) UNIFORMITY.—If a court holds invalid any provi-
sion of this Act or the application thereof on the ground 
that the provision fails to treat similarly situated terri-
tories uniformly, then the court shall, in granting a rem-
edy, order that the provision of this Act or the application
thereof be extended to any other similarly situated terri-
tory, provided that the legislature of that territory adopts 
a resolution signed by the territory’s governor requesting 
the establishment and organization of a Financial Over-
sight and Management Board pursuant to section 101. 
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— 
(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 rea-
sonably capable of comprehensive reporting that 
complies with modified accrual accounting stand-
ards, such other accounting standards as proposed 
by the Oversight 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, letter of credit, other borrowing title, obligation 
of insurance, or other financial indebtedness in phys-
ical or dematerialized form of which the issuer, obli-
gor, 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, unliq-
uidated, 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 judg-
ment, 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 ‘‘compli-
ant budget’’ means a budget that is prepared in ac-
cordance with— 
(A) agreed accounting standards; and 
(B) the applicable Fiscal Plan. 
(7) 
COVERED
TERRITORIAL
INSTRUMEN-
TALITY.—The term ‘‘covered territorial instrumen-
tality’’ means a territorial instrumentality des-
ignated by the Oversight Board pursuant to section 
101 to be subject to the requirements of this Act. 
(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 ap-
pointed 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 Com-
monwealth of Puerto Rico, including all its terri-
torial instrumentalities. 
(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, 
submitted, 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, des-
ignated by the Oversight Board in accordance with 
section 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 
accounting principles. 
(17) OVERSIGHT BOARD.—The term ‘‘Oversight 
Board’’ means a Financial Oversight and Manage-
(21) TERRITORY BUDGET.—The term ‘‘Terri-
tory Budget’’ means a budget for a territorial gov-
ernment submitted, approved, and certified in ac-
cordance with section 202. 
(22) TERRITORY
FISCAL
PLAN.—The term 
‘‘Territory Fiscal Plan’’ means a fiscal plan for a 
territorial government submitted, approved, and cer-
tified in accordance with section 201. 
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 
requirements or territorial laws and requirements imple-
menting a federally authorized or federally delegated pro-
gram protecting the health, safety, and environment of 
persons 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) PUERTO RICO.—A Financial Oversight and 
Management Board is hereby established for Puerto 
Rico. 
(2) 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 need-
ful rules and regulations for territories. 
(c) TREATMENT.—An Oversight Board established 
under this section— 
(1) shall be created as an entity within the ter-
ritorial 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 
Federal 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-
ered territorial instrumentality that is subject 
to the requirements of this Act. 
(B) BUDGETS AND REPORTS.—The Over-
sight Board may require, in its sole discretion, 
the Governor to submit to the Oversight Board 
such budgets and monthly or quarterly reports 
regarding a covered territorial instrumentality 
as the Oversight Board determines to be nec-
essary and may designate any covered terri-
torial instrumentality to be included in the Ter-
ritory Budget; except that the Oversight Board 
may not designate a covered territorial instru-
mentality to be included in the Territory Budg-
et if applicable territory law does not require 
legislative approval of such covered territorial 
instrumentality’s budget. 
(C) SEPARATE
INSTRUMENTALITY
BUDG-
ETS AND REPORTS.—The Oversight Board in
its sole discretion may or, if it requires a budg-
et from a covered territorial instrumentality 
whose budget does not require legislative ap-
proval under applicable territory law, shall des-
ignate a covered territorial instrumentality to 
be the subject of an Instrumentality Budget 
separate from the applicable Territory Budget 
and require that the Governor develop such an 
Instrumentality Budget. 
(D) INCLUSION
IN
TERRITORY
FISCAL 
PLAN.—The Oversight Board may require, in 
its sole discretion, the Governor to include a 
covered territorial instrumentality in the appli-
cable Territory Fiscal Plan. Any covered terri-
torial instrumentality submitting a separate In-
strumentality Fiscal Plan must also submit a 
separate Instrumentality Budget. 
(E) SEPARATE INSTRUMENTALITY FISCAL 
PLANS.—The Oversight Board may designate, 
in its sole discretion, a covered territorial in-
strumentality to be the subject of an Instru-
mentality Fiscal Plan separate from the appli-
cable Territory Fiscal Plan and require that the 
Governor develop such an Instrumentality Fis-
cal Plan. Any covered territorial instrumentality
submitting a separate Instrumentality Fiscal 
Plan shall also submit a separate Instrumen-
tality Budget. 
(2) EXCLUSION.— 
(A) IN GENERAL.—An Oversight Board, in 
its sole discretion, at such time as the Oversight 
Board determines to be appropriate, may ex-
clude any territorial instrumentality from the 
requirements 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 
member, one Category E member, and one Cat-
egory 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 sub-
mitted by the Speaker of the House of 
Representatives; 
(ii) the Category B member should be 
selected from a separate, non-overlapping 
list of individuals submitted by the Speak-
er of the House of Representatives; 
(iii) the Category C members should 
be selected from a list submitted by the 
Majority Leader of the Senate; 
(iv) the Category D member should be 
selected from a list submitted by the Mi-
nority Leader of the House of Representa-
tives; 
(v) the Category E member should be 
selected from a list submitted by the Mi-
nority Leader of the Senate; and 
(vi) the Category F member may be 
selected 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 
individuals who maintain a primary resi-
dence in the territory or have a primary 
place of business in the territory; 
(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 main-
tain 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. 
(F) In the event of a vacancy of a Cat-
egory A, B, C, D, or E Board seat, the cor-
responding congressional leader referenced in 
subparagraph (A) shall submit a list pursuant 
to this subsection within a timely manner of the 
Board member’s resignation or removal becom-
ing effective. 
(G) With respect to an Oversight Board 
for Puerto Rico, in the event any of the 7 mem-
bers have not been appointed by September 1, 
2016, then the President shall appoint an indi-
vidual from the list for the current vacant cat-
egory by September 15, 2016, provided that 
such list includes at least 2 individuals per va-
cancy 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 mem-
ber of the Oversight Board without voting rights. 
(4) CHAIR.—The voting members of the Over-
sight Board shall designate one of the voting mem-
bers 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. 
(5) TERM OF SERVICE.— 
(A) IN GENERAL.—Each appointed mem-
ber of the Oversight Board shall be appointed 
for a term of 3 years. 
(B) REMOVAL.—The President may re-
move any member of the Oversight Board only 
for cause. 
(C) CONTINUATION
OF
SERVICE
UNTIL 
SUCCESSOR 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 mem-
ber, provided that such reappointment occurs in 
compliance 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 
(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 offi-
cial of the territorial government. 
(g) NO COMPENSATION FOR SERVICE.—Members of 
the Oversight Board shall serve without pay, but may re-
ceive 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 Act. 
(2) ACTIVITIES REQUIRING APPROVAL OF MA-
JORITY OF MEMBERS.—Under the bylaws adopted 
pursuant to paragraph (1), the Oversight Board 
may conduct its operations under such procedures as 
it considers 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 en-
forced under section 204, or to approve or dis-
approve an infrastructure 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 appro-
priate 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 member-
ship, the Oversight Board may conduct its business 
in an executive session that consists solely of the 
Oversight Board’s voting members and any profes-
sionals the Oversight Board determines necessary 
and is closed to the public, but only for the business 
items set forth as part of the vote to convene an ex-
ecutive session. 
SEC. 102. LOCATION OF OVERSIGHT BOARD. 
The Oversight Board shall have an office in the cov-
ered 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-reim-
bursable 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 Ex-
ecutive Director may appoint and fix the pay of additional 
personnel as the Executive Director considers appropriate, 
except that no individual appointed by the Executive Di-
rector may be paid at a rate greater than the rate of pay 
for the Executive Director unless the Oversight Board pro-
vides for otherwise. The staff shall include a Revitalization 
Coordinator appointed pursuant to Title V of this Act. 
Any such personnel may include private citizens, employ-
ees of the Federal Government, or employees of the terri-
torial government, provided, however, that the Executive 
Director may 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 appoint-
ments and salaries. Any provision of the laws of the cov-
ered 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 agen-
cy 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 
request of the Chair, the head of any department or agen-
cy of the covered territory may detail, on a reimbursable 
or nonreimbursable basis, any of the personnel of that de-
partment or agency to the Oversight Board to assist it 
in carrying out its duties under this Act. 
SEC. 104. POWERS OF OVERSIGHT BOARD. 
(a) HEARINGS AND SESSIONS.—The Oversight Board 
may, for the purpose of carrying out this Act, hold hear-
ings, sit and act at times and places, take testimony, and 
receive evidence as the Oversight Board considers appro-
priate. The Oversight Board may administer oaths or af-
firmations 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 Over-
sight Board is authorized to take by this section. 
(c) OBTAINING OFFICIAL DATA.— 
(1) FROM
FEDERAL
GOVERNMENT.—Notwith-
standing sections 552 (commonly known as the 
Freedom of Information Act), 552a (commonly 
known as the Privacy Act of 1974), and 552b (com-
monly 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 department or agency. 
(2) FROM
TERRITORIAL
GOVERNMENT.—Not-
withstanding any other provision of law, the Over-
sight Board shall have the right to secure copies, 
whether written or electronic, of such records, docu-
ments, information, data, or metadata from the ter-
ritorial government necessary to enable the Over-
sight Board to carry out its responsibilities under 
this Act. At the request of the Oversight Board, the 
Oversight Board shall be granted direct access to 
such information systems, records, documents, infor-
mation, or data as will enable the Oversight Board 
to carry out its responsibilities under this Act. The
head of the entity of the territorial government re-
sponsible shall provide the Oversight Board with 
such information and assistance (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 
participant, a statement setting forth— 
(A) the name and address of the creditor 
or of each member of an organized group of 
creditors; and 
(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 credi-
tors, the date the group was formed; or
(ii) the date the Oversight Board was 
formed. 
(2) For purposes of this subsection, an orga-
nized 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 
insiders of one another. 
(3) The Oversight Board may request supple-
mental statements to be filed by each creditor or or-
ganized group of creditors quarterly, or if any fact 
in the most recently filed statement has changed 
materially. 
(e) GIFTS, BEQUESTS, AND DEVISES.—The Over-
sight Board may accept, use, and dispose of gifts, be-
quests, or devises of services or property, both real and 
personal, for the purpose of aiding or facilitating the work 
of the Oversight Board. Gifts, bequests, or devises of 
money and proceeds from sales of other property received 
as gifts, bequests, or devises shall be deposited in such 
account as the Oversight Board may establish and shall 
be available for disbursement 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 mate-
rials of any nature relating to any matter under in-
vestigation by the Oversight Board. Jurisdiction to 
compel the attendance of witnesses and the produc-
tion of such materials shall be governed by the stat-
ute setting forth the scope of personal jurisdiction 
exercised by the covered 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 per-
son refuses to obey a subpoena issued under para-
graph (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 pun-
ished 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 
covered territory. 
(g) AUTHORITY TO ENTER INTO CONTRACTS.—The 
Executive Director may enter into such contracts as the 
Executive Director considers appropriate (subject to the 
approval 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 en-
suring the prompt enforcement of any applicable laws of 
the covered territory prohibiting public sector employees 
from participating in a strike or lockout. In the application 
of this subsection, with respect to Puerto Rico, the term 
‘‘applicable 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 
territory or covered territorial instrumentality, as 
applicable, has successfully reached a voluntary 
agreement with holders of its Bond Claims to re-
structure 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 
(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 
principal maturities and interest on Bonds 
issued by such covered territory or covered ter-
ritorial instrumentality, as applicable, for a pe-
riod of up to one year during which time no in-
terest will be paid on the Bond Claims affected 
by the voluntary 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 
territorial instrumentality that have not as-
sented to such agreement until an order approv-
ing the Qualifying Modification has been en-
tered pursuant to section 601(m)(1)(D) of this 
Act. 
(3) PREEXISTING VOLUNTARY AGREEMENTS.— 
Any voluntary agreement that the territorial govern-
ment or any territorial instrumentality has executed 
before May 18, 2016, with holders of a majority in 
amount of Bond Claims that are to be affected by 
such agreement to restructure such Bond Claims 
shall be deemed to be in conformance with the re-
quirements of this subsection. 
(j) RESTRUCTURING FILINGS.— 
(1) IN GENERAL.—Subject to paragraph (3), 
before 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. 
(k) CIVIL ACTIONS TO ENFORCE POWERS.—The 
Oversight Board may seek judicial enforcement of its au-
thority to carry out its responsibilities under this Act.
(l) PENALTIES.— 
(1) ACTS
PROHIBITED.—Any officer or em-
ployee of the territorial government who prepares, 
presents, or certifies any information or report for 
the Oversight Board or any of its agents that is in-
tentionally false or misleading, or, upon learning 
that any such information is false or misleading, 
fails to immediately advise the Oversight Board or 
its agents thereof in writing, shall be subject to 
prosecution and penalties under any laws of the ter-
ritory 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 ac-
tion required by any such order, shall be subject to 
appropriate 
administrative 
discipline, 
including 
(when appropriate) suspension from duty without 
pay or removal from office, by order of the Gov-
ernor.
(3) REPORT BY GOVERNOR ON DISCIPLINARY 
ACTIONS 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 
General Services or other appropriate Federal agencies 
shall promptly provide to the Oversight Board, on a reim-
bursable or non-reimbursable basis, the administrative 
support services necessary for the Oversight Board to 
carry out its responsibilities under this Act. 
(o) INVESTIGATION OF DISCLOSURE AND SELLING 
PRACTICES.—The Oversight Board may investigate the 
disclosure and selling practices in connection with the pur-
chase of bonds issued by a covered territory for or on be-
half of any retail investors including any underrepresenta-
tion 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 Over-
sight Board shall make public the findings of any inves-
tigation 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 
territorial 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 Dis-
trict Court for the District of Hawaii. 
(b) APPEAL.—Notwithstanding any other provision 
of law, any order of a United States district court that 
is issued pursuant to an action brought under subsection 
(a) shall be subject to review only pursuant to a notice
of appeal to the applicable United States Court of Ap-
peals. 
(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 entered its final order disposing of such action. 
(d) EXPEDITED CONSIDERATION.—It shall be the 
duty of the applicable United States District Court, the 
applicable United States Court of Appeals, and, as appli-
cable, the Supreme Court of the United States to advance 
on the docket and to expedite to the greatest possible ex-
tent the disposition 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. 
SEC. 107. BUDGET AND FUNDING FOR OPERATION OF 
OVERSIGHT 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 Re-
sources and the Senate Committee on Energy and Natural 
Resources, the Governor, and the Legislature. 
(b) FUNDING.—The Oversight Board shall use its 
powers with respect to the Territory Budget of the covered 
territory to ensure that sufficient funds are available to 
cover all expenses of the Oversight Board. 
(1) PERMANENT
FUNDING.—Within 30 days 
after the date of enactment of this Act, the terri-
torial government shall designate a dedicated fund-
ing source, not subject to subsequent legislative ap-
propriations, sufficient to support the annual ex-
penses of the Oversight Board as determined in the 
Oversight Board’s sole and exclusive discretion. 
(2)(A) INITIAL FUNDING.—On the date of es-
tablishment of an Oversight Board in accordance 
with section 101(b) and on the 5th day of each 
month thereafter, the Governor of the covered terri-
tory shall transfer or cause to be transferred the 
greater of $2,000,000 or such amount as shall be 
determined by the Oversight Board pursuant to sub-
section (a) to a new account established by the terri-
torial government, which shall be available to and 
subject to the exclusive control of the Oversight
Board, without any legislative appropriations of the 
territorial government. 
(B) TERMINATION.—The initial funding re-
quirements under subparagraph (A) shall terminate 
upon the territorial government designating a dedi-
cated funding source not subject to subsequent legis-
lative appropriations under paragraph (1). 
(3) REMISSION
OF
EXCESS
FUNDS.—If the 
Oversight Board determines in its sole discretion 
that any funds transferred under this subsection ex-
ceed the amounts required for the Oversight Board’s 
operations as established pursuant to subsection (a), 
any such excess funds shall be periodically remitted 
to the territorial government. 
SEC. 108. AUTONOMY OF OVERSIGHT BOARD. 
(a) IN GENERAL.—Neither the Governor nor the 
Legislature may— 
(1) exercise any control, supervision, oversight, 
or review over the Oversight Board or its activities; 
or 
(2) enact, implement, or enforce any statute, 
resolution, policy, or rule that would impair or de-
feat the purposes of this Act, as determined by the 
Oversight Board.
(b) OVERSIGHT BOARD LEGAL REPRESENTATION.— 
In any action brought by, on behalf of, or against the 
Oversight Board, the Oversight Board shall be represented 
by such counsel as it may hire or retain so long as the 
representation complies with the applicable professional 
rules of conduct governing conflicts of interests. 
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 disclo-
sure of their financial interests, the contents of which shall 
conform 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 
Oversight Board in accordance with section 101(e) in the