I 
116TH CONGRESS 
1ST SESSION H. R. 2526 
To provide the option of discharging certain unsecured financial obligations 
of self-governing territories of the United States. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 3, 2019 
Ms. VELA´ZQUEZ (for herself, Ms. CLARKE of New York, Mr. ESPAILLAT, Mr. 
GALLEGO, Ms. JAYAPAL, Mr. KHANNA, Ms. SCHAKOWSKY, Mr. SIRES, 
Mr. SOTO, and Ms. NORTON) introduced the following bill; which was re-
ferred to the Committee on Natural Resources, and in addition to the 
Committees on the Judiciary, and the Budget, 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 
A BILL 
To provide the option of discharging certain unsecured finan-
cial obligations of self-governing territories of the United 
States. 
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 
‘‘United States Territorial Relief Act of 2019’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
Sec. 1. Short title; table of contents. 
Sec. 2. Definitions. 
Sec. 3. Findings. 
TITLE I—TERRITORIAL RELIEF 
Sec. 101. Relief through exercise of the power to regulate commerce, the bank-
ruptcy power, and the territorial power. 
Sec. 102. Effect of discharge. 
Sec. 103. Actions relating to the status of financial obligations. 
Sec. 104. Notice of discharge. 
Sec. 105. Effective date. 
TITLE II—PUERTO RICO DEBT RESTRUCTURING COMPENSATION 
FUND 
Sec. 201. Purpose. 
Sec. 202. Definitions. 
Sec. 203. Administration. 
Sec. 204. Determination of eligibility for compensation. 
Sec. 205. Puerto Rico Debt Restructuring Compensation Fund. 
Sec. 206. Regulations. 
Sec. 207. Sunset. 
TITLE III—PUERTO RICO PUBLIC CREDIT COMPREHENSIVE 
AUDIT COMMISSION 
Sec. 301. Definitions. 
Sec. 302. Establishment; dissolution. 
Sec. 303. Reports. 
Sec. 304. Duties. 
Sec. 305. Authority of the Commission. 
Sec. 306. Membership. 
Sec. 307. Powers and responsibilities. 
Sec. 308. Provision of requested information. 
Sec. 309. Access to information. 
Sec. 310. Funding. 
TITLE IV—SEVERABILITY 
Sec. 401. Severability. 
SEC. 2. DEFINITIONS. 
In this Act: 
(1) ATTACHMENT.—The term ‘‘attachment’’ 
means the time at which a security interest becomes 
enforceable against a debtor with respect to collat-
eral. 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(2) 
COLLATERAL.—The 
term 
‘‘collateral’’ 
means property subject to a security interest. 
(3) FINANCIAL
GUARANTY
INSURANCE.—The 
term ‘‘financial guaranty insurance’’ means a surety 
bond, an insurance policy, an indemnity contract, or 
any similar guaranty, under which loss is payable on 
proof of a financial loss to an insured claimant, an 
obligee, or an indemnitee as a result of the failure 
of any obligor on or issuer of any debt instrument 
or other monetary obligation to pay, when due, prin-
cipal, interest, or any other amount due or payable 
with respect to that instrument or obligation, if that 
failure to pay is the result of a financial default, a 
financial insolvency, or a discharge in bankruptcy. 
(4) FINANCIAL GUARANTY INSURER.—The term 
‘‘financial guaranty insurer’’ means a party that is 
obligated as a surety, insurer, or indemnitor under 
a financial guaranty insurance contract. 
(5) FINANCIAL OBLIGATION.—The term ‘‘finan-
cial obligation’’— 
(A) means an obligation validly owed as of 
the effective date of this Act by a qualifying 
territory or an instrumentality of a qualifying 
territory thereof that arises from any— 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(i) security issued by a qualifying ter-
ritory or instrumentality of a qualifying 
territory; 
(ii) loan taken out by a qualifying ter-
ritory or instrumentality of a qualifying 
territory; 
(iii) repurchase or swap or other de-
rivative contract entered into by a quali-
fying territory or instrumentality of a 
qualifying territory; or 
(iv) guaranty of any security or loan 
or repurchase or swap or other derivative 
contract by a qualifying territory or instru-
mentality of a qualifying territory; and 
(B) does not include any— 
(i) claim made by a vendor or service 
provider that is owed payment by a quali-
fying territory or an instrumentality of a 
qualifying territory for a good or service 
rendered in the ordinary course of busi-
ness; 
(ii) claim made by or on behalf of a 
current or former employee of a qualifying 
territory or an instrumentality of a quali-
fying territory that is owed payment for a 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
pension or other retirement benefit, or for 
a health care benefit of any kind; or 
(iii) claim against a qualifying terri-
tory or an instrumentality of a qualifying 
territory for a pending tax refund or tax 
credit. 
(6) INSTRUMENTALITY.—The term ‘‘instrumen-
tality’’ includes— 
(A) a political subdivision of a qualifying 
territory; 
(B) a public agency of a qualifying terri-
tory; 
(C) a public corporation of a qualifying 
territory; and 
(D) a banking corporation of a qualifying 
territory. 
(7) PER CAPITA DEBT OF A TERRITORY.—The 
term ‘‘per capita debt of a territory’’ means the 
quotient obtained by dividing— 
(A) the aggregate amount of the financial 
obligations of a territory and the instrumental-
ities of the territory, which shall not include— 
(i) the Federal debt; or 
(ii) the unfunded liabilities of a pen-
sion system of the government of the quali-
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
fying territory or any instrumentality of a 
qualifying territory for the payment of 
pension and other retirement benefits, or 
health care benefits of any kind, to current 
or former employees of the qualifying terri-
tory or the instrumentality of the quali-
fying territory that are owed payment for 
a pension or other retirement benefit, or 
for a health care benefit of any kind; by 
(B) the population of the territory (based 
on the most recent data available from the Bu-
reau of the Census). 
(8) PROCEEDS.—The term ‘‘proceeds’’ means— 
(A) whatever is acquired upon the sale, 
lease, license, exchange, or other disposition of 
collateral; or 
(B) whatever is collected on, or distributed 
on account of, collateral. 
(9) QUALIFYING TERRITORY.—The term ‘‘quali-
fying territory’’ means a territory that meets not 
less than 2 of the following qualifications: 
(A) The population of the territory, based 
on the most recent data available from the Bu-
reau of the Census, has decreased by more than 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
5 percent during the 10-year period ending on 
the date of a discharge under section 101. 
(B) The territory has received major dis-
aster assistance under the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act 
(42 U.S.C. 5121 et seq.) during the 5-year pe-
riod ending on the date of a discharge under 
section 101. 
(C) The per capita debt of the territory is 
greater than $15,000 (as adjusted annually to 
reflect the percentage change in the Consumer 
Price Index for All Urban Consumers published 
by the Bureau of Labor Statistics of the De-
partment of Labor). 
(10) SECURITY AGREEMENT.—The term ‘‘secu-
rity agreement’’ means an agreement or resolution 
that creates or provides for a security interest. 
(11) SECURED
FINANCIAL
OBLIGATION.—The 
term ‘‘secured financial obligation’’ means any fi-
nancial obligation to the extent of the value of any 
collateral pledged by a qualifying territory or an in-
strumentality of a qualifying territory to secure the 
repayment of the financial obligation pursuant to a 
valid and perfected security interest under applicable 
territorial law, not including— 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(A) any property acquired or anticipated to 
be acquired by a qualifying territory or an in-
strumentality of a qualifying territory after the 
date of a discharge under section 101, even if 
that property, when acquired, would have be-
come collateral subject to a security interest; or 
(B) any proceeds, products, offspring, or 
profits of the collateral not in existence on the 
date of a discharge under section 101, unless 
the property constitutes the proceeds of collat-
eral to which the security interest has attached 
as of the date of the discharge. 
(12) SECURITY INTEREST.—The term ‘‘security 
interest’’— 
(A) means an interest in property, includ-
ing a lien or other pledge of property, that se-
cures a payment or the performance of an obli-
gation; and 
(B) does not include a pledge of the full 
faith and credit of a qualifying territory or its 
instrumentality, even in the case that such 
pledge includes a promise of all available re-
sources of the qualifying territory or its instru-
mentality. 
(13) TERRITORY.—The term ‘‘territory’’— 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(A) means any self-governing Federal ter-
ritory; and 
(B) includes— 
(i) the Commonwealth of Puerto Rico; 
(ii) Guam; 
(iii) the Commonwealth of the North-
ern Mariana Islands; 
(iv) the United States Virgin Islands; 
and 
(v) American Samoa. 
(14) UNSECURED
FINANCIAL
OBLIGATION.— 
The term ‘‘unsecured financial obligation’’ means 
any financial obligation to the extent the financial 
obligation is not a secured financial obligation. 
SEC. 3. FINDINGS. 
Congress finds that— 
(1) millions of citizens of the United States re-
side in territories of the United States; 
(2) the Federal Government owes a special duty 
of care and stewardship to the citizens of territories 
of the United States because— 
(A) historically, Federal administration of 
these territories was often wanting and many 
residents of the territories faced discriminatory 
treatment by the Federal Government; 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(B) the economies of these territories face 
special constraints, including diminishment of 
property tax bases because of large, untaxed, 
Federal land holdings; and 
(C) these territories lack the benefits of 
many Federal programs, such as Supplemental 
Security Income, the Earned Income Tax Cred-
it, and full access to Medicaid; 
(3) prolonged economic downturns, declines in 
population, and natural disasters have resulted in 
some territories of the United States and the instru-
mentalities of those territories having unsupportable 
debt burdens on financial obligations, which cannot 
realistically be repaid without imposing undue hard-
ship on the citizens and residents of those terri-
tories; 
(4) disaster recovery funds that are provided by 
the Federal Government should be used for disaster 
recovery and not for direct or indirect debt pay-
ments; 
(5) unsecured creditors of financially distressed 
territories and instrumentalities of those territories 
have little prospect of recovery upon default because 
of— 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(A) the severe indebtedness of those terri-
tories; and 
(B) the lack of effective remedies for unse-
cured creditors against those territories and the 
instrumentalities of those territories; and 
(6) the people of the Commonwealth of Puerto 
Rico deserve to know about the social, political, and 
legal factors associated with the amount of the pub-
lic debt of the Commonwealth of Puerto Rico ac-
crued over the past 5 decades, and the Federal Gov-
ernment has a responsibility to support efforts to ob-
tain those answers, including public or private ef-
forts to conduct a comprehensive audit of the public 
debt of the Commonwealth of Puerto Rico. 
TITLE I—TERRITORIAL RELIEF 
SEC. 101. RELIEF THROUGH EXERCISE OF THE POWER TO 
REGULATE COMMERCE, THE BANKRUPTCY 
POWER, AND THE TERRITORIAL POWER. 
(a) IN GENERAL.—Pursuant to clauses 3 and 4 of 
section 8 of article I and clause 2, section 3 of article IV 
of the Constitution of the United States, any unsecured 
financial obligation of a qualifying territory or an instru-
mentality of a qualifying territory that is outstanding is 
discharged on the date on which a resolution stating that 
the qualifying territory wishes to discharge the unsecured 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
financial obligations of the qualifying territory and the in-
strumentalities of the qualifying territory— 
(1) is adopted by an affirmative vote of more 
than 1⁄2 of the members of each house of the legisla-
ture of that qualifying territory and is signed by the 
chief executive of the qualifying territory; or 
(2) is adopted by an affirmative vote of not less 
than 2⁄3 of the members of each house of the legisla-
ture of that qualifying territory. 
(b) LIMITATION.—A qualifying territory may dis-
charge unsecured financial obligations of the qualifying 
territory and the instrumentalities of the qualifying terri-
tory under this title not more frequently than once during 
any 7-year period, and such discharge shall prohibit the 
qualifying territory from discharging, adjusting, or im-
pairing, in any manner or degree including in a proceeding 
under title III of PROMESA (48 U.S.C. 2161 et seq.), 
a debt described in section 2(5)(B)(ii). 
(c) NO STAY OF ACTIONS BY QUALIFYING TERRI-
TORY TO OBTAIN A DISCHARGE.—Notwithstanding any 
other provision of Federal, State, or territorial law, the 
ability of a qualifying territory to obtain a discharge under 
this Act shall not be stayed, avoided, or otherwise limited 
by operation of any provision of law or by order of a court, 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
oversight board, or administrative agency in any pro-
ceeding. 
(d) SECURED
FINANCIAL
OBLIGATIONS
UNAF-
FECTED.— 
(1) IN GENERAL.—Except as provided in para-
graphs (1) and (3) of section 102, nothing in sub-
section (a) shall affect the validity and enforceability 
of any financial obligation of a qualifying territory 
or an instrumentality of a qualifying territory to the 
extent that the obligation is a secured financial obli-
gation. 
(2) VOIDABILITY.—Notwithstanding paragraph 
(1), a secured financial obligation of a qualifying 
territory or an instrumentality of a qualifying terri-
tory may be voidable or otherwise impaired under 
any other applicable law. 
(e) RULE OF CONSTRUCTION.—Nothing in this Act 
shall be construed to operate as a stay of a pending case 
brought under title III of PROMESA (48 U.S.C. 2161 
et seq.), or of any act of an oversight board appointed 
under that Act, or to reinstate any financial obligation dis-
charged under this Act through any procedure under 
PROMESA (48 U.S.C. 2101 et seq.). 
SEC. 102. EFFECT OF DISCHARGE. 
A discharge under section 101 shall— 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(1) except in regard to actions brought under 
section 103, operate as a permanent stay, applicable 
to all entities and enforceable by the qualifying terri-
tory or an instrumentality of the qualifying territory 
in any court with jurisdiction over an action de-
scribed in section 103(a), against the commencement 
or continuation of an action, the employment of 
process, or an act to collect, recover, or offset any 
outstanding financial obligation to the extent that 
the financial obligation is not a secured financial ob-
ligation as of the date of the discharge, regardless 
of whether discharge of that unsecured financial ob-
ligation is waived by the qualifying territory; 
(2) void any outstanding judgment entered on 
an unsecured financial obligation of the qualifying 
territory or an instrumentality of the qualifying ter-
ritory to the extent that such judgment is a deter-
mination of liability of the qualifying territory or in-
strumentality; and 
(3) if prior to the date of the discharge under 
section 101, the qualifying territory or an instru-
mentality of the qualifying territory entered into a 
security agreement securing a financial obligation, 
prevent the security interest created by the security 
agreement from attaching to any property acquired 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
by the qualifying territory or an instrumentality 
thereof after the date of the discharge under section 
101, except to the extent that such property con-
stitutes the proceeds of collateral to which the secu-
rity interest had attached as of the date of the dis-
charge. 
SEC. 103. ACTIONS RELATING TO THE STATUS OF FINAN-
CIAL OBLIGATIONS. 
(a) IN GENERAL.—Any financial obligation is conclu-
sively deemed to be an unsecured financial obligation ex-
cept to the extent that the holder of that obligation proves 
that the financial obligation is a secured financial obliga-
tion in an action for a declaratory judgment that is filed— 
(1) in— 
(A) an appropriate territorial court of the 
qualifying territory; or 
(B) a district court of the United States in 
the qualifying territory; and 
(2) not later than 180 days after the date of a 
discharge under section 101. 
(b) BURDEN OF PROOF.—In an action described in 
subsection (a), the holder of an obligation shall be required 
to prove by clear and convincing evidence that— 
(1) the obligation is a secured financial obliga-
tion; and 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(2) any revenues generated after a discharge 
under section 101 are the proceeds of the collateral 
securing the secured financial obligation. 
(c) 
EXCLUSIVE
JURISDICTION.—Notwithstanding 
title 28, United States Code, a court described in sub-
section (a)(1) shall have exclusive jurisdiction over an ac-
tion involving, arising from, or related to the status of a 
financial obligation as a secured or an unsecured financial 
obligation under subsection (a), including— 
(1) any action asserting a taking under the 
Fifth Amendment of the Constitution of the United 
States; and 
(2) any action for declaratory judgment. 
(d) APPEALS.—Any appeal from an action under this 
section shall be heard solely in— 
(1) for a case filed under subsection (a)(1)(A), 
the appropriate territorial court of the qualifying 
territory; or 
(2) for a case filed under subsection (a)(1)(B), 
the appropriate court of appeals of the United 
States for the qualifying territory. 
(e) COSTS.—All parties shall bear their own costs in 
an action under this section. 
(f) ESTOPPEL.—Any party to an action under this 
section shall be estopped in other actions from claiming 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
that the party has been deprived of the property of that 
party by virtue of— 
(1) a discharge under section 101; or 
(2) a final ruling in an action described in sub-
section (a) that a financial obligation of a party is 
an unsecured financial obligation. 
(g) BAR ON AVOIDANCE ACTIONS BY CREDITORS.— 
Notwithstanding any other provision of law, a creditor of 
a qualifying territory or an instrumentality of a qualifying 
territory that has received a discharge under this title may 
not avoid or bring an action to avoid, directly or deriva-
tively, any transfer of property made by the qualifying ter-
ritory or instrumentality. 
(h) AVOIDANCE OF SECURITY INTERESTS BY QUALI-
FYING TERRITORIES AND INSTRUMENTALITIES OF QUALI-
FYING TERRITORIES.— 
(1) IN GENERAL.—In addition to the relief pro-
vided elsewhere in this Act, a qualifying territory or 
an instrumentality of a qualifying territory, in a civil 
action described in paragraph (2), may avoid any se-
curity interest— 
(A) securing a financial obligation that 
would be avoidable by a trustee in a case under 
chapter 7 of title 11, United States Code, filed 
on the date of the discharge under section 101 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00017
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
if, notwithstanding sections 101(41) and 109(a) 
of title 11, United States Code, or any statute 
of limitations under that title, the qualifying 
territory or the instrumentality of the qualifying 
territory were deemed an eligible debtor under 
chapter 7 of title 11, United States Code; or 
(B) securing a financial obligation to the 
extent that the amount owed on the financial 
obligation exceeds the value of any collateral, 
subject to restrictions under paragraph (3), se-
curing the financial obligation. 
(2) CIVIL ACTIONS.—A civil action described in 
this paragraph shall be— 
(A) brought by a qualifying territory, an 
instrumentality of a qualifying territory, or a 
relator on behalf of a qualifying territory or an 
instrumentality of a qualifying territory not 
later than 2 years after the date of a discharge 
under section 101; and 
(B) filed in— 
(i) an appropriate territorial court of 
the qualifying territory; or 
(ii) a district court of the United 
States in the qualifying territory. 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00018
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(3) VALUE OF COLLATERAL.—For the purpose 
of determining the value of collateral under para-
graph (1)(B), the following shall not be included: 
(A) Any proceeds, products, offspring, or 
profits of the collateral not in existence on the 
date of a discharge under section 101, regard-
less of whether those proceeds, products, off-
spring, or profits of the collateral would become 
collateral subject to a security interest after the 
date of a discharge under section 101. 
(B) Any property acquired or anticipated 
to be acquired by a qualifying territory or an 
instrumentality of a qualifying territory after 
the date of a discharge under section 101, re-
gardless of whether that property, when ac-
quired, would have become collateral subject to 
a security interest. 
(C) Any contract right to tax revenues that 
arise after the date of a discharge under section 
101. 
SEC. 104. NOTICE OF DISCHARGE. 
(a) IN GENERAL.— 
(1) RESPONSIBILITIES OF A QUALIFYING TER-
RITORY OR AN INSTRUMENTALITY OF A QUALIFYING 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00019
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
TERRITORY.—After a discharge under section 101, 
the qualifying territory shall promptly— 
(A) notify the Secretary of the Treasury of 
the discharge; 
(B) provide actual notice of the discharge 
and of the right to bring an action under sec-
tion 103 to— 
(i) any known holder of a financial ob-
ligation as of the date of the discharge; 
(ii) any known indenture trustee for a 
financial obligation as of the date of the 
discharge; 
(iii) any known agent bank for the 
loan, swap, repurchase agreement, or other 
derivative of the holder of a financial obli-
gation as of the date of the discharge; and 
(iv) any known financial guaranty in-
surer of a financial obligation as of the 
date of the discharge; 
(C) publish a general notice, in each of the 
governmental languages of the qualifying terri-
tory, of the discharge and of the right to bring 
an action under section 103 in— 
(i) not less than 1 newspaper of gen-
eral circulation of each governmental lan-
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00020
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
guage published in the qualifying territory; 
and 
(ii) not less than 2 daily newspapers 
that each have a national circulation and a 
general audience; and 
(D) publish the general notice described in 
subparagraph (C) in the newspapers described 
in subparagraph (C) not less than once each 
week during the 3-week period beginning on the 
date on which that general notice is first pub-
lished. 
(2) NOTICE IN THE FEDERAL REGISTER.—On 
the date on which the Secretary of the Treasury re-
ceives the notice described in paragraph (1)(A), the 
Secretary of the Treasury shall promptly cause to be 
published in the Federal Register a notice of that 
discharge and of the right to bring an action under 
section 103. 
(b) ADEQUATE NOTICE.— 
(1) HOLDERS OF FINANCIAL OBLIGATIONS.— 
(A) IN GENERAL.—A holder of a financial 
obligation shall be presumed to have received 
adequate notice of a discharge under section 
101 if, during the 180-day period beginning on 
the date of a discharge under section 101, a 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00021
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
qualifying territory provides actual notice of the 
discharge and of the right to bring an action 
under section 103 to— 
(i) the holder of the financial obliga-
tion as of the date of the discharge; 
(ii) an indenture trustee for the secu-
rity of the holder as of the date of the dis-
charge; or 
(iii) an agent bank for the loan, swap, 
repurchase agreement, or other derivative 
of the holder of a financial obligation as of 
the date of the discharge. 
(B) 
REBUTTABLE
PRESUMPTION.—The 
presumption described in subparagraph (A) 
may be rebutted by clear and convincing evi-
dence that the holder of the financial obligation 
did not receive adequate evidence. 
(2) NOTICE
TO
A
FINANCIAL
GUARANTY
IN-
SURER.—A financial guaranty insurer shall be con-
clusively deemed to have received adequate notice of 
a discharge under section 101 if, during the 180-day 
period beginning on the date of a discharge under 
section 101, the financial guaranty insurer receives 
actual notice of the discharge and of the right to 
bring an action under section 103. 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00022
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
SEC. 105. EFFECTIVE DATE. 
This title shall take effect on the date that is 60 days 
after the date of enactment of this Act. 
TITLE II—PUERTO RICO DEBT 
RESTRUCTURING COMPENSA-
TION FUND 
SEC. 201. PURPOSE. 
Pursuant to clause 1, section 8 of article I and clause 
2, section 3 of article IV of the Constitution of the United 
States, the purpose of this title is to provide compensation 
to certain entities and natural persons that suffer eco-
nomic losses due to a discharge under section 101 of fi-
nancial obligations owed to those entities and natural per-
sons by the Commonwealth of Puerto Rico or an instru-
mentality of the Commonwealth of Puerto Rico. 
SEC. 202. DEFINITIONS. 
In this title: 
(1) COLLATERAL
SOURCE
COMPENSATION.— 
The term ‘‘collateral source compensation’’— 
(A) means, on the date of a determination 
under section 204(b)(2)(A), compensation that 
a claimant has received or is entitled to receive, 
from a source other than the Fund, as a result 
of the discharge of the debt of the Common-
wealth of Puerto Rico and the instrumentalities 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00023
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
of the Commonwealth of Puerto Rico under sec-
tion 101; and 
(B) includes financial guaranty insurance. 
(2) FUND.—The term ‘‘Fund’’ means the Puer-
to Rico Debt Restructuring Compensation Fund es-
tablished under section 205(a). 
(3) INELIGIBLE INVESTMENT COMPANY.—The 
term ‘‘ineligible investment company’’ means an in-
vestment company, as defined in section 3 of the In-
vestment Company Act of 1940 (15 U.S.C. 80a–3), 
that was not registered under section 8 of that Act 
(15 U.S.C. 80a–8) on the date on which the invest-
ment company made an investment in a financial ob-
ligation of the Commonwealth of Puerto Rico or an 
instrumentality of the Commonwealth of Puerto 
Rico. 
(4) PUERTO RICO PUBLIC PENSION PLAN.—The 
term ‘‘Puerto Rico public pension plan’’ means a 
pension system of the government of the Common-
wealth of Puerto Rico;. 
(5) SPECIAL MASTER.—The term ‘‘Special Mas-
ter’’ means the Special Master appointed under sec-
tion 203(a). 
SEC. 203. ADMINISTRATION. 
(a) SPECIAL MASTER.— 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00024
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(1) APPOINTMENT.— 
(A) IN GENERAL.—Not later than 60 days 
after the date of a discharge of the debt of the 
Commonwealth of Puerto Rico and the instru-
mentalities of the Commonwealth of Puerto 
Rico under section 101, the Chief Justice of the 
Supreme Court of the Commonwealth of Puerto 
Rico shall appoint a Special Master to admin-
ister the compensation program established 
under this title. 
(B) DISQUALIFICATION.—A Special Mas-
ter may not have a relationship to a party, at-
torney, action, or court that would require the 
disqualification of a judge under section 455 of 
title 28, United States Code, unless, after the 
date on which the Special Master discloses any 
potential ground for disqualification, the party, 
attorney, action, or court with which the Special 
Master has a relationship, with the approval of 
the Chief Justice of the Supreme Court of the 
Commonwealth of Puerto Rico, consents to the 
appointment of the Special Master. 
(2) STATUS.—The Special Master shall be con-
sidered to be an official of the Commonwealth of 
Puerto Rico. 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00025
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(3) VACANCY.— 
(A) IN
GENERAL.—In the event of the 
death, resignation, incapacity, or other vacancy 
in the position of the Special Master, the posi-
tion shall be filled in the manner described in 
paragraph (1). 
(B) FEDERAL VACANCIES REFORM ACT.— 
Sections 3345 through 3349d of title 5, United 
States Code (commonly known as the ‘‘Federal 
Vacancies Reform Act of 1998’’), shall not 
apply to vacancies in the position of Special 
Master. 
(b) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to pay the administrative and support costs for 
the Special Master in carrying out this title. 
SEC. 204. DETERMINATION OF ELIGIBILITY FOR COM-
PENSATION. 
(a) FILING OF CLAIM.— 
(1) IN GENERAL.—A claimant may file a claim 
for compensation under this title with the Special 
Master. The claim shall— 
(A) be on the form developed under para-
graph (2); 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00026
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(B) state the factual basis, as certified by 
the claimant, for eligibility for compensation 
and the amount of compensation sought; and 
(C) provide evidence that corroborates the 
eligibility of the claimant for compensation and 
the amount of compensation sought. 
(2) CLAIM FORM.— 
(A) IN
GENERAL.—The Special Master 
shall— 
(i) develop a claim form that claim-
ants shall use when submitting claims 
under paragraph (1); and 
(ii) ensure that the form developed 
under clause (i) can be filed electronically. 
(B) 
CONTENTS.—The 
form 
developed 
under subparagraph (A) shall request informa-
tion relating to the claim of the claimant, in-
cluding information relating to— 
(i) economic loss that the claimant 
suffered as a result of the discharge under 
section 101 of the debt of the Common-
wealth of Puerto Rico and the instrumen-
talities of the Commonwealth of Puerto 
Rico; 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00027
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(ii) collateral source compensation the 
claimant has received, or is entitled to re-
ceive, as a result of the discharge described 
in clause (i); and 
(iii) availability of financial guaranty 
insurance coverage to indemnify the claim-
ant. 
(C) PENALTY.—A claim submitted on the 
form developed under subparagraph (A) shall— 
(i) be submitted under penalty of per-
jury; and 
(ii) include an attestation by the 
claimant that the claimant has not willfully 
attempted to evade or defeat the eligibility 
restrictions described in subsection (c). 
(b) REVIEW AND DETERMINATION.— 
(1) REVIEW.—The Special Master shall review 
a claim submitted under subsection (a) and deter-
mine— 
(A) whether the claimant is an eligible per-
son under subsection (c); 
(B) with respect to a claimant determined 
to be an eligible person under subsections 
(c)(2)(A) and (c)(3)— 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00028
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(i) the extent of the economic loss to 
the claimant; and 
(ii) the amount of compensation to 
which the claimant is entitled based on the 
economic losses to the claimant, the facts 
of the claim, and the individual cir-
cumstances of the claimant, including— 
(I) the strength of the ties to the 
Commonwealth of Puerto Rico, as de-
fined 
in 
regulations 
promulgated 
under section 206, of the claimant; 
(II) the financial need, as defined 
in regulations promulgated under sec-
tion 206, of the claimant; 
(III) the price at which the 
claimant obtained that claim against 
the Commonwealth of Puerto Rico or 
the instrumentality of the Common-
wealth of Puerto Rico; and 
(IV) the date on which the claim-
ant obtained the claim against the 
Commonwealth of Puerto Rico or the 
instrumentality of the Commonwealth 
of Puerto Rico; and 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00029
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(C) with respect to a claimant determined 
to be an eligible person under subsection 
(c)(2)(B) and (c)(3)— 
(i) the extent of the economic loss to 
the claimant; and 
(ii) the amount of compensation to 
which the claimant is entitled based on the 
economic loss to the claimant, the facts of 
the claim, and the individual circumstances 
of the claimant, including— 
(I) the financial need, as defined 
in regulations promulgated under sec-
tion 206, of the claimant; 
(II) the price at which the claim-
ant obtained that claim against the 
Commonwealth of Puerto Rico or the 
instrumentality of the Commonwealth 
of Puerto Rico; and 
(III) the date on which the claim-
ant obtained the claim against the 
Commonwealth of Puerto Rico or the 
instrumentality of the Commonwealth 
of Puerto Rico. 
(2) DETERMINATION.— 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00030
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(A) IN
GENERAL.—Not later than 120 
days after the date on which a claim is deter-
mined to be substantially complete by the Spe-
cial Master, the Special Master shall complete 
a review, make a determination, and provide 
written notice to the claimant, with respect to 
the matters that were the subject of the claim 
under review. Such a determination shall be 
final and not subject to judicial review. 
(B) RIGHTS OF CLAIMANTS.— 
(i) HEARINGS.—Before the date on 
which a determination described in sub-
paragraph (A) is made, a claimant in a re-
view under paragraph (1) shall have the 
right to an in-person hearing conducted by 
the Special Master. 
(ii) WAIVER.—A claimant in a review 
under paragraph (1) may waive the right 
to a hearing described in clause (i). 
(3) COLLATERAL
SOURCE
COMPENSATION.— 
The Special Master shall reduce the amount of com-
pensation determined under paragraph (2) by the 
amount of collateral source compensation. 
(c) ELIGIBILITY.— 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00031
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(1) IN GENERAL.—A claimant shall be deter-
mined to be an eligible person for purposes of this 
subsection if the Special Master determines that 
such claimant— 
(A) is a person described in paragraph (2); 
and 
(B) meets the requirements of paragraph 
(3). 
(2) ELIGIBLE PERSONS.— 
(A) ELIGIBLE PERSONS IN THE COMMON-
WEALTH OF PUERTO RICO.— 
(i) IN
GENERAL.—A claimant is a 
person described in this subparagraph if 
the claimant is— 
(I) a natural person who— 
(aa) was domiciled in the 
Commonwealth of Puerto Rico 
and was a citizen or lawful per-
manent resident of the United 
States on September 20, 2017, 
regardless of whether that nat-
ural 
person 
was 
physically 
present in the Commonwealth of 
Puerto Rico at that time; 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(bb) is a beneficial owner of 
a security issued by the Com-
monwealth of Puerto Rico or an 
instrumentality of the Common-
wealth of Puerto Rico; and 
(cc) became a beneficial 
owner of the security described in 
item (bb) not later than Sep-
tember 20, 2017; 
(II) a bank or credit union that 
did business solely in the Common-
wealth of Puerto Rico on September 
20, 2017; 
(III) a worker association or 
workplace association in the Common-
wealth of Puerto Rico; 
(IV) a Puerto Rico public pen-
sion plan; 
(V) a business, of which the prin-
cipal place of business was in the 
Commonwealth of Puerto Rico on 
September 20, 2017; or 
(VI) subject to clause (ii), any 
other person that the Special Master 
determines is an eligible person. 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(ii) EXCLUSIONS.—A claimant is not 
a person described in this subparagraph if 
the claimant is— 
(I) an ineligible investment com-
pany; 
(II) a financial guaranty insurer; 
(III) as defined in section 101 of 
title 11, United States Code— 
(aa) a party to a master net-
ting agreement; 
(bb) a party to a repurchase 
agreement; or 
(cc) a party to a swap agree-
ment; 
(IV) any other financial institu-
tion with total consolidated assets 
greater than $2,000,000,000; 
(V) a person that owns a share 
in an unregistered investment fund 
that owns a security issued by the 
Commonwealth of Puerto Rico or an 
instrumentality of the Commonwealth 
of Puerto Rico; 
(VI) a person that acquired a 
claim against the Commonwealth of 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
Puerto Rico or an instrumentality of 
the Commonwealth of Puerto Rico 
during the period beginning on the 
date that is 180 days before the date 
of a discharge under section 101, un-
less that claim was acquired through 
devise, descent, or a divorce settle-
ment; 
(VII) the Special Master; or 
(VIII) any other person that the 
Special Master determines is not an 
eligible person. 
(B) ELIGIBLE PERSONS NOT IN PUERTO 
RICO.— 
(i) IN
GENERAL.—A claimant is a 
person described in this subparagraph if 
the claimant was not domiciled in the 
Commonwealth of Puerto Rico on Sep-
tember 20, 2017, and the claimant is— 
(I) a worker association or work-
place association; 
(II) a pension plan; 
(III) a natural person who— 
(aa) is a beneficial owner of 
a security issued by the Com-
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
monwealth of Puerto Rico or an 
instrumentality of the Common-
wealth of Puerto Rico; and 
(bb) became a beneficial 
owner of that security not later 
than September 20, 2017; 
(IV) subject to clause (iii), an 
open-end mutual fund; or 
(V) subject to clause (ii), any 
other person that the Special Master 
determines is an eligible person. 
(ii) EXCLUSIONS.—A claimant is not 
a person described in this subparagraph if 
the claimant was not domiciled in the 
Commonwealth of Puerto Rico on Sep-
tember 20, 2017, and the claimant is— 
(I) an ineligible investment com-
pany; 
(II) a closed-end company, as de-
fined in section 5 of the Investment 
Company Act of 1940 (15 U.S.C. 
80a–5); 
(III) a financial guaranty in-
surer; 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(IV) as defined in section 101 of 
title 11, United States Code— 
(aa) a party to a master net-
ting agreement; 
(bb) a party to a repurchase 
agreement; or 
(cc) a party to a swap agree-
ment; 
(V) any other financial institu-
tion with total consolidated assets 
greater than $2,000,000,000; 
(VI) a person that owns a share 
in an unregistered investment fund 
that owns a security issued by the 
Commonwealth of Puerto Rico or an 
instrumentality of the Commonwealth 
of Puerto Rico; 
(VII) a person that acquired a 
claim against the Commonwealth of 
Puerto Rico or an instrumentality of 
the Commonwealth of Puerto Rico 
during the period beginning on the 
date that is 180 days before the date 
of a discharge under section 101, un-
less that claim was acquired through 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
devise, descent, or a divorce settle-
ment; 
(VIII) the Special Master; or 
(IX) any other person that the 
Special Master determines is not an 
eligible person. 
(iii) ELIGIBILITY OF OPEN-END MU-
TUAL FUNDS.—A claimant that is an open- 
end mutual fund is not an eligible person 
described in this subparagraph unless the 
manager of that open-end mutual fund 
pledges to waive the fee of that manager 
for any compensation the open-end mutual 
fund receives under this title. 
(3) REQUIREMENTS FOR BENEFICIAL OWNERS 
OF SECURITIES.—A person that is beneficial owner 
of a security issued by the Commonwealth of Puerto 
Rico or an instrumentality of the Commonwealth of 
Puerto Rico may file a claim under subsection (a) if 
the person, as of the date on which the claim is 
filed— 
(A) has continuously held that security 
during the period beginning on September 19, 
2017, and ending on the date on which the 
claim is filed; and 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00038
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(B) the claim is submitted not later than 
180 days after the date of a discharge of the 
debt of the Commonwealth of Puerto Rico and 
the instrumentalities of the Commonwealth of 
Puerto Rico under section 101. 
(d) COMPENSATION.— 
(1) IN GENERAL.—A claimant may not receive 
compensation under this title if that claimant is not 
determined to be an eligible person under this sub-
section. 
(2) LIMITATIONS.— 
(A) IN GENERAL.—A claimant may not re-
ceive compensation under this title that exceeds 
the amount of the claim filed by the claimant 
under subsection (a), or seek or receive com-
pensation for a debt described in section 
2(5)(B)(ii), which— 
(i) shall not be discharged; and 
(ii) shall be repaid in full as provided 
by section 101(b). 
(B) ASSIGNED CLAIMS.—In the case of a 
claim that was assigned to a claimant, the 
claimant may not receive compensation under 
this title for that claim that exceeds the amount 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00039
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
paid by the claimant for the assignment of that 
claim. 
SEC. 205. PUERTO RICO DEBT RESTRUCTURING COM-
PENSATION FUND. 
(a) IN GENERAL.—On the date of a discharge of the 
debt of the Commonwealth of Puerto Rico and the instru-
mentalities of the Commonwealth of Puerto Rico under 
section 101, there is established in the Treasury of the 
United States a fund to be known as the ‘‘Puerto Rico 
Debt Restructuring Compensation Fund’’, consisting of 
amounts appropriated into the Fund under subsection (b). 
(b) APPROPRIATION.— 
(1) IN GENERAL.—There is appropriated to the 
Fund, out of any funds in the Treasury of the 
United 
States 
not 
otherwise 
appropriated, 
$15,000,000,000, which shall be available without 
further appropriation to the Special Master to pro-
vide compensation for claims of eligible persons 
under this title. 
(2) EMERGENCY DESIGNATION.— 
(A) IN GENERAL.—The amount necessary 
to carry out this Act is designated by Congress 
as being for emergency requirements pursuant 
to section 251(b)(2)(A)(i) of the Balanced 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00040
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
Budget and Emergency Deficit Control Act of 
1985 (2 U.S.C. 901(b)(2)(A)(i)). 
(B) PAYGO.— 
(i) IN
GENERAL.—This Act is des-
ignated as an emergency requirement pur-
suant to section 4(g) of the Statutory Pay- 
As-You-Go Act of 2010 (2 U.S.C. 933(g)). 
(ii) DESIGNATION IN SENATE.—In the 
Senate, this Act is designated as an emer-
gency requirement pursuant to section 
403(a) of Senate Concurrent Resolution 
13, 111th Congress, agreed to April 29, 
2009. 
(c) DISTRIBUTION.— 
(1) IN
GENERAL.—Of the amounts appro-
priated into the Fund under subsection (b)— 
(A) 50 percent shall be made available to 
pay claims of eligible persons described in sec-
tion 204(c)(2)(A); and 
(B) 50 percent shall be made available to 
pay claims of eligible persons described in sec-
tion 204(c)(2)(B). 
(2) 
CLAIMS
EXCEEDING
APPROPRIATED 
AMOUNTS.—If the claims of eligible persons de-
scribed in section 204(c)(2)(A) or of eligible persons 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00041
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
described 
in 
section 
204(c)(2)(B) 
exceed 
the 
amounts appropriated to pay those respective claims 
under paragraph (1), any claim of an eligible person 
within that respective category shall be reduced on 
a pro rata basis. 
(3) DATE OF DISTRIBUTION.—For the purpose 
of reducing claims under paragraph (2), the Special 
Master shall determine a date on which all claims of 
eligible persons shall be paid. 
(d) UNOBLIGATED
FUNDS.—Any amounts made 
available under subsection (b) that are not obligated by 
the Special Master as of the date that is 36 months after 
the date of enactment of this Act shall be returned to the 
Treasury of the United States. 
SEC. 206. REGULATIONS. 
(a) IN GENERAL.—The Special Master shall promul-
gate regulations, through notice and comment rulemaking 
in compliance with section 553 of title 5, United States 
Code, to carry out this title. 
(b) NOTICE OF PROPOSED RULEMAKING.—Not later 
than 60 days after the date on which the Special Master 
is appointed under section 203(a), the Special Master 
shall publish a notice of proposed rulemaking in the Fed-
eral Register. 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00042
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(c) FINAL RULE.—Not later than 60 days after the 
date on which the notice of proposed rulemaking described 
in subsection (b) is published, the Special Master shall 
promulgate final regulations to carry out this title. 
(d) VACANCY IN THE POSITION OF SPECIAL MAS-
TER.—If promulgation of regulations under this section 
is completed before the date on which a Special Master 
is appointed under section 203(a)(3)(A), that Special 
Master is not required to promulgate new regulations 
under this section. 
SEC. 207. SUNSET. 
The provisions of this title shall be effective for the 
period beginning on the date of enactment of this Act and 
ending on the date that is 36 months after the date of 
enactment of this Act. 
TITLE III—PUERTO RICO PUBLIC 
CREDIT 
COMPREHENSIVE 
AUDIT COMMISSION 
SEC. 301. DEFINITIONS. 
In this title: 
(1) COMPREHENSIVE AUDIT.—The term ‘‘com-
prehensive audit’’ means a supervisory action taken 
to examine and evaluate the public debt contracting, 
refinancing, or renegotiation process, the source and 
intended use of resources, and the implementation of 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00043
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
programs and projects financed with domestic or 
foreign debt, in order to determine the legitimacy, 
lawfulness, transparency, quality, efficacy, and effi-
ciency thereof, considering legal and financial as-
pects, and the economic, social, gender, regional, ec-
ological, national, and municipal impact thereof. 
(2) COMMISSION.—The term ‘‘Commission’’ 
means the Puerto Rico Public Credit Comprehensive 
Audit Commission established under section 302. 
(3) CREDIT REQUEST.—The term ‘‘credit re-
quest’’ means request or application for credit by the 
Commonwealth of Puerto Rico, or any instrumen-
tality of the Commonwealth of Puerto Rico, to ob-
tain credit from a government or a banking or mul-
tilateral financial system in the domestic or foreign 
private sector, including any agreement, contract, or 
other form or method relating to that request or ap-
plication. 
SEC. 302. ESTABLISHMENT; DISSOLUTION. 
(a) ESTABLISHMENT.—There is established an inde-
pendent commission to be known as the Puerto Rico Pub-
lic Credit Comprehensive Audit Commission. 
(b) DISSOLUTION.—The Commission shall only be 
dissolved after the Commission completes or fulfills each 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00044
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
duty of the Commission under section 304 and issues the 
final report of the Commission under section 303(b). 
SEC. 303. REPORTS. 
(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this Act, and not later than every 
180 days thereafter, the Commission shall make publicly 
available a report describing the progress of the Commis-
sion in carrying out the duties of the Commission under 
section 304 as of the date on which the report is released. 
(b) FINAL REPORT.—Upon completing the duties of 
the Commission under section 304, the Commission shall 
make publicly available and submit to the Legislative As-
sembly of the Commonwealth of Puerto Rico and the Gov-
ernor of the Commonwealth of Puerto Rico the final report 
of the Commission, which shall state in detail the findings, 
conclusions, and recommendations of the Commission re-
lating to the duties of the Commission carried out under 
section 304. 
SEC. 304. DUTIES. 
(a) IN GENERAL.—The Commission shall carry out 
the duties described in subsections (b) and (c). 
(b) COMPREHENSIVE AUDIT.— 
(1) IN GENERAL.—The Commission shall con-
duct a comprehensive audit of all public debt of the 
Commonwealth of Puerto Rico issued during the pe-
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00045
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
riod beginning on the first day of fiscal year 1972 
and ending on the date of enactment of this Act, 
which shall include an audit of agreements, con-
tracts, and other forms or methods employed by the 
Commonwealth of Puerto Rico and any instrumen-
tality thereof to obtain credit from governments, 
banking or multilateral financial system institutions, 
and the domestic or foreign private sector. 
(2) CRITERIA.—In order to conduct the com-
prehensive audit under paragraph (1), the Commis-
sion shall establish criteria to be used in evaluating 
each credit request that shall include, with respect 
to each credit request— 
(A) any precedent, study, technical, eco-
nomic, financial, or social viability score, or 
other supporting document that supported the 
credit request at the time the credit request was 
made; 
(B) the amount of the credit requested in 
the credit request; 
(C) the currency unit in which the credit 
was obtained through the credit request; 
(D) the total amount of any subsequent in-
crease or extension of credit from the original 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00046
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
amount of credit obtained through the credit re-
quest; 
(E) the economic, financial, and business 
conditions agreed upon under the credit re-
quest; 
(F) the economic, financial, and business 
conditions effectively applied under the credit 
request; 
(G) any condition contained in the credit 
request; 
(H) the intended and actual use of any re-
sources funded by the credit request; 
(I) the total impact of any project funded 
by the credit request; 
(J) the name of each individual who, on 
behalf of any party to the credit request, trans-
acted or executed the credit request; 
(K) each method or mechanism used to 
meet any obligation agreed to under the credit 
request; and 
(L) any other circumstance or information 
determined by the Commission to be pertinent 
in determining the legitimacy, lawfulness, trans-
parency, quality, efficacy, and efficiency of each 
credit request, considering— 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00047
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(i) the legal and financial aspects of 
the credit request; and 
(ii) the economic, social, gender, re-
gional, ecological, national, and municipal 
impact of the credit request. 
(c) DATA TRANSPARENCY DATABASE.—The Com-
mission shall establish and maintain a publicly available 
data transparency database that shall contain any infor-
mation relating to any public, private, domestic, or foreign 
debt held by a public institution of the Commonwealth of 
Puerto Rico collected through the comprehensive audit 
under subsection (b). 
SEC. 305. AUTHORITY OF THE COMMISSION. 
In order to carry out the duties described in section 
304, the Commission— 
(1) may audit, and ensure the transparency of, 
the indebtedness process of the Commonwealth of 
Puerto Rico and each instrumentality of the Com-
monwealth of Puerto Rico; and 
(2) shall have primary jurisdiction to intervene, 
have knowledge of, and conduct, on the initiative of 
the Commission, any investigation on any matter or 
dispute relating to any indebtedness process de-
scribed in paragraph (1). 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00048
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
SEC. 306. MEMBERSHIP. 
(a) IN GENERAL.—The Commission shall be com-
posed of— 
(1) an individual who— 
(A) not later than 180 days after the date 
of enactment of this Act, except as provided in 
subsection (e), shall be selected by the board of 
directors of the Puerto Rico Institute of Statis-
tics from a list of candidates submitted to the 
board of directors by scientific associations and 
other relevant professional groups in the Com-
monwealth of Puerto Rico; 
(B) has demonstrated expertise and ad-
vanced academic preparation in— 
(i) statistics; 
(ii) economics; or 
(iii) government planning; and 
(C)(i) during the 5-year period ending on 
the date on which the individual is selected 
under subparagraph (A), has not— 
(I) held an elected public office in the 
Commonwealth of Puerto Rico; or 
(II) made any financial contribution 
to, or participated in, any political cam-
paign relating to the Commonwealth of 
Puerto Rico; and 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00049
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(ii) does not have any other direct political 
connection to the government of the Common-
wealth of Puerto Rico; and 
(2) the following individuals, who shall be ap-
pointed not later than 180 days after the date of en-
actment of this Act by the Governor of the Common-
wealth of Puerto Rico to serve on the Commission: 
(A) One representative of each parliamen-
tary majority in the Legislative Assembly. 
(B) One representative of each parliamen-
tary minority in the Legislative Assembly. 
(C) One professor of economics from any 
public higher education institution located in 
the Commonwealth of Puerto Rico. 
(D) One professor of finance from any 
public higher education institution located in 
the Commonwealth of Puerto Rico. 
(E) One professor of accounting from any 
public higher education institution located in 
the Commonwealth of Puerto Rico. 
(F) One professor of statistics from any 
public higher education institution located in 
the Commonwealth of Puerto Rico. 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00050
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(G) One professor of law from any public 
higher education institution located in the Com-
monwealth of Puerto Rico. 
(H) One representative of the labor union 
sector in the Commonwealth of Puerto Rico. 
(I) One representative of the business com-
munity in the Commonwealth of Puerto Rico, 
with preference given to a representative from 
a small- or medium-sized business located in 
the Commonwealth of Puerto Rico. 
(J) One representative of the cooperative 
sector in the Commonwealth of Puerto Rico. 
(K) One professor of sociology from any 
public higher education institution who has 
published work in 1 or more peer-reviewed jour-
nals that indicates expertise in data relating to 
Puerto Rico. 
(L) One individual who is a translator or 
interpreter of English and Spanish. 
(b) CHAIRPERSON.— 
(1) IN GENERAL.—After each of the members 
of the Commission are appointed under subsection 
(a), the members of the Commission shall elect from 
among the members of the Commission 1 individual 
to serve as the Chairperson of the Commission. 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00051
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(2) DUTIES.—The Chairperson of the Commis-
sion shall— 
(A) call and preside over meetings of the 
Commission; and 
(B) be the legal representative of the Com-
mission. 
(3) TIE VOTE.—In the case of a tie vote among 
the members of the Commission, the vote of the 
Chairperson shall be determinative. 
(c) PERIOD
OF APPOINTMENT.—Members of the 
Commission shall be appointed for the life of the Commis-
sion. 
(d) VACANCIES.—Any vacancy in the Commission 
shall not affect the powers of the Commission but shall 
be filled in the same manner as the original appointment 
or election. 
(e) MEMBER OF THE COMMISSION SELECTED BY 
THE PUERTO RICO INSTITUTE OF STATISTICS.—If, on the 
date of enactment of this Act, the Puerto Rico Institute 
of Statistics has been disbanded or reorganized to be a 
part of another government department of the Common-
wealth of Puerto Rico, the individual described in sub-
section (a)(1) shall be selected by President of the Senate 
of the Commonwealth of Puerto Rico and the Speaker of 
the House of Representatives of Puerto Rico. 
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00052
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS
(f) FAILURE TO APPOINT COMMISSION MEMBERS.— 
If the Governor of the Commonwealth of Puerto Rico fails 
to appoint any member of the Commission described under 
subsection (a)(2) during the period described in that sub-
section, not later than 180 days after the expiration of 
that period, the President of the Senate of the Common-
wealth of Puerto Rico and the Speaker of the House of 
Representatives of the Commonwealth of Puerto Rico shall 
jointly appoint any member that has not been appointed. 
SEC. 307. POWERS AND RESPONSIBILITIES. 
To carry out the duties of the Commission under sec-
tion 304, the Commission shall— 
(1) adopt internal bylaws as appropriate for the 
proper operations and fulfillment of the objectives of 
the Commission; 
(2) define and propose to the Secretary of the 
Treasury the hiring of staff to conduct audits in ac-
cordance with the rules and administrative proce-
dures set forth by the laws of the Commonwealth of 
Puerto Rico relating to technical audits; 
(3) designate and hire a minimum number of 
regular personnel required to carry out the duties 
and fulfill the objectives of the Commission; 
(4) read reports relating to the audit processes 
and other studies that have been entrusted to com-
VerDate Sep 11 2014 
04:15 May 10, 2019
Jkt 089200
PO 00000
Frm 00053
Fmt 6652
Sfmt 6201
E:\BILLS\H2526.IH
H2526
pamtmann on DSKBFK8HB2PROD with BILLS