(d) EXPEDITED CONSIDERATION.—It shall be the 
duty of the United States District Court for the District 
of Puerto Rico, the United States Court of Appeals for 
the First Circuit, and the Supreme Court of the United 
States to advance on the docket and to expedite to the 
greatest possible extent the disposition of any matter 
brought under subsection (a). 
SEC. 106. FUNDING FOR OPERATION OF COUNCIL. 
(a) SUBMISSION
OF BUDGET.—The Council shall 
submit a proposed budget for each fiscal year to the Presi-
dent for the inclusion in the annual budget of the United 
States. 
(b) CONTENTS OF BUDGET.—The budget shall de-
scribe— 
(1) expenditures of the Council by each object 
class, including expenditures for staff of the Council; 
(2) services of personnel and other services pro-
vided by or on behalf of the Council for which the 
Council made no reimbursement; and 
(3) any gifts or bequests made to the Council 
during the previous fiscal year. 
(c) APPROPRIATIONS.—No amount may be obligated 
or expended by the Council for a fiscal year unless such 
amount has been approved by an Act of Congress, and 
then only according to such Act. 
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SEC. 107. TERMINATION OF ACTIVITIES. 
The Council may not terminate its activities earlier 
than 3 fiscal years after its establishment and until— 
(1) it has certified to the President that the 
Government of Puerto Rico has made meaningful 
progress in its budgeting practices, tax collection, 
and its fiscal condition, including access to the cap-
ital markets at a reasonable interest rate; and 
(2) the President has approved the Council’s 
certification in paragraph (1). 
SEC. 108. APPLICATION OF LAWS OF PUERTO RICO TO 
COUNCIL. 
(a) IN GENERAL.—The following laws of Puerto Rico 
(as in effect on the date of the enactment of this Act) 
shall apply to the members and activities of the Council: 
(1) Open Meeting Law. 
(2) FOIA Requirement. 
(3) Conflicts of Interest. 
(b) NO CONTROL, SUPERVISION, OVERSIGHT, OR RE-
VIEW BY GOVERNOR OR LEGISLATIVE ASSEMBLY.— 
(1) IN
GENERAL.—Neither the Governor nor 
the Legislative Assembly may exercise any control, 
supervision, oversight, or review over the Council or 
its activities. 
(2) PROHIBITION
AGAINST
LEGISLATION
AF-
FECTING
AUTHORITY.—The Legislative Assembly 
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shall have no authority to enact any act, resolution, 
or rule with respect to the Council established under 
section 101(a) of this Act. 
(c) AUTHORITY NOT SUBJECT TO REPRESENTATION 
BY PUERTO RICO ATTORNEY GENERAL.—In any action 
brought by or on behalf of the Council, and in any action 
brought against the Council, the Council shall be rep-
resented by such counsel as it may select, but in no in-
stance may the Council be represented by the Attorney 
General of Puerto Rico. 
SEC. 109. RULES OF CONSTRUCTION. 
Nothing in this Act may be construed— 
(1) to limit the authority of Congress to exer-
cise ultimate legislative authority over Puerto Rico 
pursuant to article IV, section 3, clause 2 of the 
Constitution of the United States; or 
(2) to interfere with the right of the United 
States citizens of Puerto Rico to determine whether 
to remain a territory, become a State of the United 
States of America, or become a sovereign nation. 
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TITLE II—RESPONSIBILITIES OF 
FINANCIAL STABILITY COUNCIL 
SEC. 201. DEVELOPMENT OF FINANCIAL PLAN AND BUDG-
ET FOR PUERTO RICO. 
(a) DEVELOPMENT OF FINANCIAL PLAN AND BUDG-
ET.—For each fiscal year, the Governor shall develop and 
submit to the Council a financial plan and budget for 
Puerto Rico in accordance with this section. 
(b) CONTENTS OF FINANCIAL PLAN AND BUDGET.— 
A financial plan and budget for the Government of Puerto 
Rico for a fiscal year and the next 3 fiscal years (including 
the projected revenues and expenditures of each fund of 
the Government of Puerto Rico for such years), shall sat-
isfy the following requirements: 
(1) The financial plan and budget shall meet 
the standards described in subsection (c) to promote 
the financial stability of the Government of Puerto 
Rico. 
(2) The financial plan and budget shall provide 
for estimates of revenues and expenditures on a 
modified accrual basis. 
(3) The financial plan and budget shall— 
(A) describe lump-sum expenditures by de-
partment by object class; 
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(B) describe capital expenditures (together 
with a schedule of projected capital commit-
ments of the Government of Puerto Rico and 
proposed sources of funding); 
(C) contain estimates of short-term and 
long-term debt (both outstanding and antici-
pated to be issued); and 
(D) contain cash flow forecasts for each 
fund of the Government of Puerto Rico at such 
intervals as the Council may require. 
(4) The financial plan and budget shall include 
a statement describing methods of estimations and 
significant assumptions. 
(5) The financial plan and budget shall include 
any proposal to specifically authorize an entity to be 
a debtor under 11 U.S.C. 109. 
(6) The financial plan and budget shall include 
any other provisions and shall meet such other cri-
teria as the Council considers appropriate to meet 
the purposes of this Act, including management ini-
tiatives to promote productivity, improvement in the 
delivery of services, or cost savings. 
(c) STANDARDS TO PROMOTE FINANCIAL STABILITY 
DESCRIBED.— 
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(1) IN GENERAL.—The standards to promote 
the financial stability of the Government of Puerto 
Rico applicable to the financial plan and budget for 
a fiscal year are as follows: 
(A) The Council shall contract with an 
independent auditor to conduct a full scale 
audit of the financial practices and accounting 
methodologies employed by the Government of 
Puerto Rico, and based on this report make 
recommendations for changes and improve-
ments to be considered to be employed by the 
Council. 
(B) During the first three years of the 
plan, the Government of Puerto Rico shall 
make continuous, substantial progress toward 
equalizing the expenditures and revenues of the 
Government of Puerto Rico for such fiscal years 
(in equal annual installments to the greatest ex-
tent possible). 
(C) The financial plan and budget shall as-
sure the continuing long-term financial stability 
of the Government of Puerto Rico, as indicated 
by factors including access to short-term and 
long-term capital markets, the efficient manage-
ment of the Government of Puerto Rico’s work-
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force, and the effective provision of services by 
the Government of Puerto Rico. 
(2) APPLICATION OF SOUND BUDGETARY PRAC-
TICES.—In meeting the standards described in para-
graph (1) with respect to a financial plan and budg-
et for a fiscal year, the Government of Puerto Rico 
shall apply sound budgetary practices, including re-
ducing costs and other expenditures, improving pro-
ductivity, improving tax collection, or combinations 
of such practices. 
SEC. 202. PROCESS FOR SUBMISSION AND APPROVAL OF FI-
NANCIAL PLAN AND ANNUAL PUERTO RICO 
BUDGET. 
(a) SUBMISSION OF PRELIMINARY FINANCIAL PLAN 
AND BUDGET BY GOVERNOR.—After consultation with the 
Governor and Legislative Assembly of Puerto Rico, the 
Council shall set a date for the Governor to submit to the 
Council and the Legislative Assembly a financial plan and 
budget for the fiscal year which meets the requirement of 
section 201. 
(b) REVIEW BY COUNCIL.—Upon receipt of the fi-
nancial plan and budget for a fiscal year from the Gov-
ernor under subsection (a), the Council shall promptly re-
view the financial plan and budget. In conducting the re-
view, the Council may request any additional information 
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it considers necessary and appropriate to carry out its du-
ties under this title. 
(c) ACTION UPON APPROVAL OF GOVERNOR’S PRE-
LIMINARY FINANCIAL PLAN AND BUDGET.— 
(1) CERTIFICATION TO GOVERNOR.— 
(A) IN GENERAL.—If the Council deter-
mines that the financial plan and budget for the 
fiscal year submitted by the Governor under 
subsection (a) meets the requirements applica-
ble under section 201— 
(i) the Council shall approve the fi-
nancial plan and budget and shall provide 
the Governor, the Legislative Assembly, 
the President, and Congress with a notice 
certifying its approval; and 
(ii) the Governor shall promptly sub-
mit the financial plan and budget to the 
Legislative Assembly. 
(B) DEEMED APPROVAL AFTER 30 DAYS.— 
(i) IN GENERAL.—If the Council has 
not provided the Governor, the Legislative 
Assembly, the President, and Congress 
with a notice certifying approval under 
subparagraph (A)(i) or a statement of dis-
approval under subsection (d)(1) upon the 
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expiration of the 30-day period which be-
gins on the date the Council receives the 
financial plan and budget from the Gov-
ernor under subsection (a), the Council 
shall be deemed to have approved the fi-
nancial plan and budget and to have pro-
vided the Governor, the Legislative Assem-
bly, the President, and Congress with the 
notice certifying approval described in sub-
paragraph (A)(i). 
(ii) EXPLANATION
OF
FAILURE
TO 
RESPOND.—If clause (i) applies with re-
spect to a financial plan and budget, the 
Council shall provide the Governor, the 
Legislative Assembly, the President, and 
Congress with an explanation for its failure 
to provide the notice certifying approval or 
the statement of disapproval during the 
30-day period described in such clause. 
(2) ADOPTION
OF
BUDGET
BY
ASSEMBLY 
AFTER RECEIPT OF APPROVED BUDGET.—Not later 
than the date set by the Council in subsection (a) 
after receiving the budget for the fiscal year from 
the Governor under paragraph (1)(A)(ii), the Legis-
lative Assembly shall by Act adopt a budget for the 
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fiscal year which shall serve as the adoption of the 
budget of the Government of Puerto Rico for the fis-
cal year under such section, and shall submit such 
budget to the Governor and the Council. 
(3) REVIEW OF LEGISLATIVE ASSEMBLY BUDG-
ET BY AUTHORITY.—Upon receipt of the budget for 
a fiscal year from the Legislative Assembly under 
paragraph (2) (taking into account any items or pro-
visions disapproved by the Governor or disapproved 
by the Governor and reenacted by the Legislative 
Assembly) the Council shall promptly review the 
budget. In conducting the review, the Council may 
request any additional information it considers nec-
essary and appropriate to carry out its duties under 
this subtitle. 
(4) RESULTS OF AUTHORITY REVIEW OF LEGIS-
LATIVE ASSEMBLY’S INITIAL BUDGET.— 
(A) APPROVAL
OF
LEGISLATIVE
ASSEM-
BLY’S INITIAL BUDGET.—If the Council deter-
mines that the budget for the fiscal year sub-
mitted by the Legislative Assembly under para-
graph (2) meets the requirements applicable 
under section 201— 
(i) the Council shall approve the budg-
et and shall provide the Governor, the Leg-
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islative Assembly, the President, and Con-
gress with a notice certifying its approval; 
and 
(ii) the Legislative Assembly shall 
promptly submit the budget to the Gov-
ernor for transmission to the President 
and Congress. 
(B) DISAPPROVAL OF LEGISLATIVE ASSEM-
BLY’S INITIAL BUDGET.—If the Council deter-
mines that the budget for the fiscal year sub-
mitted by the Legislative Assembly under para-
graph (2) does not meet the requirements appli-
cable under section 201, the Council shall dis-
approve the budget, and shall provide the Gov-
ernor, the Legislative Assembly, the President, 
and Congress with a statement containing— 
(i) the reasons for such disapproval; 
and 
(ii) any recommendations for revisions 
to the budget the Council considers appro-
priate to ensure that the budget is con-
sistent with section 201(b) and (c). 
(C) DEEMED APPROVAL AFTER 15 DAYS.— 
(i) IN GENERAL.—If the Council has 
not provided the Governor, the Legislative 
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Assembly, the President, and Congress 
with a notice certifying approval under 
subparagraph (A)(i) or a statement of dis-
approval under subparagraph (B) upon the 
expiration of the 15-day period which be-
gins on the date the Council receives the 
budget from the Legislative Assembly 
under paragraph (2), the Council shall be 
deemed to have approved the budget and 
to have provided the Governor, the Legisla-
tive Assembly, the President, and Congress 
with the notice certifying approval de-
scribed in subparagraph (A)(i). 
(ii) EXPLANATION
OF
FAILURE
TO 
RESPOND.—If clause (i) applies with re-
spect to a budget, the Council shall provide 
the Governor, the Legislative Assembly, 
the President, and Congress with an expla-
nation for its failure to provide the notice 
certifying approval or the statement of dis-
approval during the 15-day period de-
scribed in such clause. 
(5) AUTHORITY REVIEW OF LEGISLATIVE AS-
SEMBLY’S REVISED BUDGET.— 
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(A) SUBMISSION OF LEGISLATIVE ASSEM-
BLY’S
REVISED
BUDGET.—Not later than 15 
days after receiving the statement from the 
Council under paragraph (4)(B), the Legislative 
Assembly shall promptly by Act adopt a revised 
budget for the fiscal year which addresses the 
reasons for the Council’s disapproval cited in 
the statement, and shall submit such budget to 
the Governor and the Council. 
(B) APPROVAL
OF
LEGISLATIVE
ASSEM-
BLY’S
REVISED
BUDGET.—If, after reviewing 
the revised budget for a fiscal year submitted 
by the Legislative Assembly under subpara-
graph (A) in accordance with the procedures 
described in this subsection, the Council deter-
mines that the revised budget meets the re-
quirements applicable under section 201, the 
Council shall approve the budget and shall pro-
vide the Governor, the Legislative Assembly, the 
President, and Congress with a notice certifying 
its approval. 
(C) DISAPPROVAL OF LEGISLATIVE ASSEM-
BLY’S REVISED BUDGET.— 
(i) IN GENERAL.—If, after reviewing 
the revised budget for a fiscal year sub-
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approval during the 15-day period de-
scribed in such clause. 
(6) DEADLINE FOR TRANSMISSION OF A BUDG-
ET BY AUTHORITY.—Notwithstanding any other pro-
vision of this section each fiscal year the Council 
shall— 
(A) provide Congress with a notice certi-
fying its approval of the Legislative Assembly’s 
initial budget for the fiscal year under para-
graph (4)(A); 
(B) provide Congress with a notice certi-
fying its approval of the Legislative Assembly’s 
revised budget for the fiscal year under para-
graph (5)(B); or 
(C) submit to Congress an approved and 
recommended budget of the Council for the 
Government of Puerto Rico for the fiscal year 
under paragraph (5)(C). 
(d) ACTION UPON DISAPPROVAL OF GOVERNOR’S 
PRELIMINARY BUDGET.— 
(1) STATEMENT
OF
DISAPPROVAL.—If the 
Council determines that the budget for the fiscal 
year submitted by the Governor under subsection (a) 
does not meet the requirements applicable under sec-
tion 201, the Council shall disapprove the budget, 
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and shall provide the Governor and the Legislative 
Assembly with a statement containing— 
(A) the reasons for such disapproval; and 
(B) any recommendations for revisions to 
the budget the Council considers appropriate to 
ensure that the budget meets the requirements 
applicable under section 201. 
(2) AUTHORITY REVIEW OF GOVERNOR’S RE-
VISED FINANCIAL PLAN AND BUDGET.— 
(A) SUBMISSION OF GOVERNOR’S REVISED 
FINANCIAL PLAN AND BUDGET.—Not later than 
15 days after receiving the statement from the 
Council under paragraph (1), the Governor 
shall promptly submit to the Council and the 
Legislative Assembly a revised financial plan 
and budget for the fiscal year which addresses 
the reasons for the Council’s disapproval cited 
in the statement. 
(B) APPROVAL OF GOVERNOR’S REVISED 
FINANCIAL PLAN AND BUDGET.—If the Council 
determines that the revised financial plan and 
budget for the fiscal year submitted by the Gov-
ernor under subparagraph (A) meets the re-
quirements applicable under section 201— 
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(i) the Council shall approve the fi-
nancial plan and budget and shall provide 
the Governor, the Legislative Assembly, 
the President, and Congress with a notice 
certifying its approval; and 
(ii) the Governor shall promptly sub-
mit the financial plan and budget to the 
Legislative Assembly. 
(C) DISAPPROVAL
OF
GOVERNOR’S
RE-
VISED FINANCIAL PLAN AND BUDGET.— 
(i) IN GENERAL.—If the Council de-
termines that the revised financial plan 
and budget for the fiscal year submitted by 
the Governor under subparagraph (A) does 
not meet the requirements applicable under 
section 201, the Council shall— 
(I) disapprove the financial plan 
and budget; 
(II) shall provide the Governor, 
the Legislative Assembly, the Presi-
dent, and Congress with a statement 
containing the reasons for such dis-
approval; and 
(III) recommend a financial plan 
and budget for the Government of 
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Puerto Rico which meets the require-
ments applicable under section 201 
and submit such financial plan and 
budget to the Governor and the Legis-
lative Assembly. 
(ii) SUBMISSION OF REJECTED FINAN-
CIAL PLAN AND BUDGET.—The Governor 
shall promptly submit the revised financial 
plan and budget disapproved by the Coun-
cil under this subparagraph to the Legisla-
tive Assembly. 
(D) DEEMED APPROVAL AFTER 15 DAYS.— 
(i) IN GENERAL.—If the Council has 
not provided the Governor, the Legislative 
Assembly, the President, and Congress 
with a notice certifying approval under 
subparagraph (B)(i) or a statement of dis-
approval under subparagraph (C) upon the 
expiration of the 15-day period which be-
gins on the date the Council receives the 
revised financial plan and budget sub-
mitted by the Governor under subpara-
graph (A), the Council shall be deemed to 
have approved the revised financial plan 
and budget and to have provided the Gov-
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ernor, the Legislative Assembly, the Presi-
dent, and Congress with the notice certi-
fying approval described in subparagraph 
(B)(i). 
(ii) EXPLANATION
OF
FAILURE
TO 
RESPOND.—If clause (i) applies with re-
spect to a financial plan and budget, the 
Council shall provide the Governor, the 
Legislative Assembly, the President, and 
Congress with an explanation for its failure 
to provide the notice certifying approval or 
the statement of disapproval during the 
15-day period described in such clause. 
(3) ACTION BY LEGISLATIVE ASSEMBLY.— 
(A) ADOPTION OF FINANCIAL PLAN AND 
BUDGET.—Not later than 30 days after receiv-
ing the Governor’s approved revised financial 
plan and budget for the fiscal year under para-
graph (2)(B) or (in the case of a financial plan 
and budget disapproved by the Council) the fi-
nancial plan and budget recommended by the 
Council under paragraph (2)(C)(i)(III), the 
Legislative Assembly shall by Act adopt a fi-
nancial plan and budget for the fiscal year 
which shall serve as the adoption of the budgets 
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of the Government of Puerto Rico for the fiscal 
year under such section, and shall submit the 
financial plan and budget to the Governor and 
the Council. 
(B) REVIEW BY AUTHORITY.—The finan-
cial plan and budget submitted by the Legisla-
tive Assembly under subparagraph (A) shall be 
subject to review by the Council and revision by 
the Legislative Assembly in the same manner as 
the financial plan and budget submitted by the 
Legislative Assembly after an approved prelimi-
nary financial plan and budget of the Governor 
under paragraphs (3), (4), (5), and (6) of sub-
section (c). 
(e) REVISIONS TO FINANCIAL PLAN AND BUDGET.— 
(1) PERMITTING GOVERNOR TO SUBMIT REVI-
SIONS.—The Governor may submit proposed revi-
sions to the financial plan and budget to the Council 
at any time during the year. 
(2) PROCESS
FOR
REVIEW, APPROVAL, DIS-
APPROVAL, AND LEGISLATIVE ASSEMBLY ACTION.— 
Except as provided in paragraph (3), the procedures 
described in subsections (b), (c), and (d) shall apply 
with respect to a proposed revision to a financial 
plan and budget in the same manner as such proce-
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