Title: United States Territorial Relief Act of 2018
Policy area: Government Operations and Politics

Summary:
United States Territorial Relief Act of 2018
This bill establishes a process under which Puerto Rico and other U.S. territories may terminate certain debts if they meet eligibility criteria.
The bill allows territories to terminate their public, unsecured debt if they meet two of three criteria:
The bill also provides funding that a special master must allocate to certain creditors whose debts were discharged under this bill.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3262 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  2d Session
                                S. 3262

   To provide the option of discharging certain unsecured financial 
    obligations of self-governing territories of the United States.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 25, 2018

Ms. Warren (for herself, Mr. Sanders, Mrs. Gillibrand, Mr. Markey, and 
  Ms. Harris) introduced the following bill; which was read twice and 
       referred to the Committee on Energy and Natural Resources

_______________________________________________________________________

                                 A BILL


 
   To provide the option of discharging certain unsecured financial 
    obligations of self-governing territories of the United States.

    Be it enacted by the Senate and House of Representatives 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 2018''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

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 bankruptcy 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 collateral.
            (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, principal, 
        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 ``financial 
        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--
                            (i) security issued by a qualifying 
                        territory or instrumentality of a qualifying 
                        territory;
                            (ii) loan taken out by a qualifying 
                        territory or instrumentality of a qualifying 
                        territory;
                            (iii) repurchase or swap or other 
                        derivative contract entered into by a 
                        qualifying 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 instrumentality 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 qualifying 
                        territory or an instrumentality of a qualifying 
                        territory for a good or service rendered in the 
                        ordinary course of business;
                            (ii) claim made by or on behalf of a 
                        current or former employee of a qualifying 
                        territory or an instrumentality of a qualifying 
                        territory that is owed payment for a pension or 
                        other retirement benefit, or for a health care 
                        benefit of any kind; or
                            (iii) claim against a qualifying territory 
                        or an instrumentality of a qualifying territory 
                        for a pending tax refund or tax credit.
            (6) Instrumentality.--The term ``instrumentality'' 
        includes--
                    (A) a political subdivision of a qualifying 
                territory;
                    (B) a public agency of a qualifying territory;
                    (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 instrumentalities of 
                the territory, which shall not include--
                            (i) the Federal debt; or
                            (ii) the unfunded liabilities of a pension 
                        system of the government of the qualifying 
                        territory or its instrumentalities for the 
                        payment of pension and other retirement 
                        benefits, or health care benefits of any kind, 
                        to current or former employees of a qualifying 
                        territory or its instrumentalities of a 
                        qualifying territory that is 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 Bureau 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 ``qualifying 
        territory'' means a territory that meets not less than two of 
        the following qualifications:
                    (A) The population of the territory, based on the 
                most recent data available from the Bureau of the 
                Census, has decreased by more than 5 percent during the 
                10-year period ending on the date of a discharge under 
                section 101.
                    (B) The territory has received major disaster 
                assistance under the Robert T. Stafford Disaster Relief 
                and Emergency Assistance Act (42 U.S.C. 5121 et seq.) 
                during the 5-year period 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 Department of Labor).
            (10) Security agreement.--The term ``security 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 financial obligation to the 
        extent of the value of any collateral pledged by a qualifying 
        territory or an instrumentality 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--
                    (A) 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, even if that 
                property, when acquired, would have become 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 collateral 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, including a lien 
                or other pledge of property, that secures a payment or 
                the performance of an obligation; 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 resources of the 
                qualifying territory or its instrumentality.
            (13) Territory.--The term ``territory''--
                    (A) means any self-governing Federal territory; and
                    (B) includes--
                            (i) the Commonwealth of Puerto Rico;
                            (ii) Guam;
                            (iii) the Commonwealth of the Northern 
                        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 reside 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;
                    (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 Credit, 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 instrumentalities of those territories 
        having unsupportable debt burdens on financial obligations, 
        which cannot realistically be repaid without imposing undue 
        hardship on the citizens and residents of those territories;
            (4) disaster recovery funds that are provided by the 
        Federal Government should be used for disaster recovery and not 
        for direct or indirect debt payments;
            (5) unsecured creditors of financially distressed 
        territories and instrumentalities of those territories have 
        little prospect of recovery upon default because of--
                    (A) the severe indebtedness of those territories; 
                and
                    (B) the lack of effective remedies for unsecured 
                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 public debt of the 
        Commonwealth of Puerto Rico accrued over the past 5 decades, 
        and the Federal Government has a responsibility to support 
        efforts to obtain those answers, including public or private 
        efforts 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 instrumentality 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 
financial obligations of the qualifying territory and the 
instrumentalities of the qualifying territory--
            (1) is adopted by an affirmative vote of more than \1/2\ of 
        the members of each house of the legislature 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 legislature of that 
        qualifying territory.
    (b) Limitation.--A qualifying territory may discharge unsecured 
financial obligations of the qualifying territory and the 
instrumentalities of the qualifying territory 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 
impairing, 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 Territory 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, 
oversight board, or administrative agency in any proceeding.
    (d) Secured Financial Obligations Unaffected.--
            (1) In general.--Except as provided in paragraphs (3) and 
        (4) of section 102, nothing in subsection (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 obligation.
            (2) Voidability.--Notwithstanding paragraph (1), a secured 
        financial obligation of a qualifying territory or an 
        instrumentality of a qualifying territory 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 financial obligations 
discharged 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--
            (1) except in regard to actions brought under section 103, 
        operate as an permanent stay, applicable to all entities and 
        enforceable by the qualifying territory or an instrumentality 
        thereof in any court with jurisdiction over an action described 
        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 
        obligation as of the date of the discharge, regardless of 
        whether discharge of that unsecured financial obligation is 
        waived by the qualifying territory;
            (2) void any outstanding judgment entered on an unsecured 
        financial obligation of the qualifying territory or 
        instrumentality thereof to the extent that such judgment is a 
        determination of liability of the qualifying territory or 
        instrumentality;
            (3) if prior to the date of the discharge under section 
        101, the qualifying territory or an instrumentality 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 by the qualifying territory or an instrumentality 
        thereof after the date of the discharge under section 101, 
        except to the extent that such property constitutes the 
        proceeds of collateral to which the security interest had 
        attached as of the date of the discharge.

SEC. 103. ACTIONS RELATING TO THE STATUS OF FINANCIAL OBLIGATIONS.

    (a) In General.--Any financial obligation is conclusively deemed to 
be an unsecured financial obligation except to the extent that the 
holder of that obligation proves that the financial obligation is a 
secured financial obligation 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 obligation; and
            (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 subsection (a)(1) shall have 
exclusive jurisdiction over an action 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 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 subsection (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 
derivatively, any transfer of property made by the qualifying territory 
or instrumentality.
    (h) Avoidance of Security Interests by Qualifying Territories and 
Instrumentalities of Qualifying Territories.--
            (1) In general.--In addition to the relief provided 
        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 security 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 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), securing 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 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.
            (3) Value of collateral.--For the purpose of determining 
        the value of collateral under paragraph (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, regardless of whether 
                those proceeds, products, offspring, 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, regardless of 
                whether that property, when acquired, 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 territory or 
        instrumentality of a qualifying 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 section 103 to--
                            (i) any known holder of a financial 
                        obligation 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 obligation as of 
                        the date of the discharge; and
                            (iv) any known financial guaranty insurer 
                        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 territory, of 
                the discharge and of the right to bring an action under 
                section 103 in--
                            (i) not less than 1 newspaper of general 
                        circulation of each governmental language 
                        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 published.
            (2) Notice in the federal register.--On the date on which 
        the Secretary of the Treasury receives 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 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 obligation 
                        as of the date of the discharge;
                            (ii) an indenture trustee for the security 
                        of the holder as of the date of the discharge; 
                        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 evidence that the holder of the 
                financial obligation did not receive adequate evidence.
            (2)  Notice to a financial guaranty insurer.--A financial 
        guaranty insurer shall be conclusively 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.

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 COMPENSATION 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 economic losses due to a discharge under 
section 101 of financial obligations owed to those entities and natural 
persons by the Commonwealth of Puerto Rico or an instrumentality of the 
Commonwealth of Puerto Rico.

SEC. 202. DEFINITIONS.

    In this title--
            (1) 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 Commonwealth of Puerto Rico and the 
                instrumentalities of the Commonwealth of Puerto Rico 
                under section 101; and
                    (B) includes financial guaranty insurance;
            (2) the term ``Fund'' means the Puerto Rico Debt 
        Restructuring Compensation Fund established under section 
        205(a);
            (3) the term ``ineligible investment company'' means an 
        investment company, as defined in section 3 of the Investment 
        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 investment company made an investment in a financial 
        obligation of the Commonwealth of Puerto Rico or an 
        instrumentality of the Commonwealth of Puerto Rico;
            (4) the term ``Puerto Rico public pension plan'' means a 
        pension system of the government of the Commonwealth of Puerto 
        Rico; and
            (5) the term ``Special Master'' means the Special Master 
        appointed under section 203(a).

SEC. 203. ADMINISTRATION.

    (a) Special Master.--
            (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 instrumentalities 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 
                administer the compensation program established under 
                this title.
                    (B) Disqualification.--A Special Master may not 
                have a relationship to a party, attorney, 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 considered to be 
        an official of the Commonwealth of Puerto Rico.
            (3) Vacancy.--
                    (A) In general.--In the event of the death, 
                resignation, incapacity, or other vacancy in the 
                position of the Special Master, the position 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 COMPENSATION.

    (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 paragraph (2);
                    (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 develop a 
                claim form that claimants shall use when submitting 
                claims under paragraph (1). The Special Master shall 
                ensure that such form can be filed electronically.
                    (B) Contents.--The form developed under 
                subparagraph (A) shall request information including 
                information regarding--
                            (i) economic loss that the claimant 
                        suffered as a result of the discharge of the 
                        debt of the Commonwealth of Puerto Rico and the 
                        instrumentalities of the Commonwealth of Puerto 
                        Rico under section 101;
                            (ii) collateral source compensation the 
                        claimant has received or is entitled to receive 
                        as a result of the discharge described in 
                        clause (i); and
                            (iii) availability of financial guaranty 
                        insurance coverage to indemnify the claimant.
                    (C) Penalty.--A claim submitted on the form 
                developed under subparagraph (A) shall--
                            (i) be submitted under penalty of perjury; 
                        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 determine--
                    (A) whether the claimant is an eligible person 
                under subsection (c); and
                    (B) with respect to a claimant determined to be an 
                eligible person under subsections (c)(2)(A) 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 
                        losses to the claimant, the facts of the claim, 
                        and the individual circumstances of the 
                        claimant, including--
                                    (I) the strength of the ties to the 
                                Commonwealth of Puerto Rico, as defined 
                                in regulations promulgated under 
                                section 206, of the claimant;
                                    (II) the financial need, as defined 
                                in regulations promulgated under 
                                section 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 Commonwealth of 
                                Puerto Rico; and
                                    (IV) the date on which the claimant 
                                obtained the claim against the 
                                Commonwealth of Puerto Rico or the 
                                instrumentality of the Commonwealth of 
                                Puerto Rico; and
                    (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 
                                section 206, of the claimant;
                                    (II) the price at which the 
                                claimant 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 
                                claimant obtained the claim against the 
                                Commonwealth of Puerto Rico or the 
                                instrumentality of the Commonwealth of 
                                Puerto Rico.
            (2) Determination.--
                    (A) In general.--Not later than 120 days after that 
                date on which a claim is determined to be substantially 
                complete by the Special 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 subparagraph (A) is 
                        made, a claimant in a review 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 compensation determined under 
        paragraph (2) by the amount of collateral source compensation.
    (c) Eligibility.--
            (1) In general.--A claimant shall be determined 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 commonwealth 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 
                                        permanent resident of the 
                                        United States on September 20, 
                                        2017, regardless of whether 
                                        that natural person was 
                                        physically present in the 
                                        Commonwealth of Puerto Rico at 
                                        that time;
                                            (bb) is a beneficial owner 
                                        of a security issued by the 
                                        Commonwealth of Puerto Rico or 
                                        an instrumentality of the 
                                        Commonwealth of Puerto Rico; 
                                        and
                                            (cc) became a beneficial 
                                        owner of the security described 
                                        in item (bb) not later than 
                                        September 20, 2017;
                                    (II) a bank or credit union that 
                                did business solely in the Commonwealth 
                                of Puerto Rico on September 20, 2017;
                                    (III) a worker association or 
                                workplace association in the 
                                Commonwealth of Puerto Rico;
                                    (IV) a Puerto Rico public pension 
                                plan;
                                    (V) a business, of which the 
                                principal 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.
                            (ii) Exclusions.--A claimant is not a 
                        person described in this subparagraph if the 
                        claimant is--
                                    (I) an ineligible investment 
                                company;
                                    (II) a financial guaranty insurer;
                                    (III) as defined in section 101 of 
                                title 11, United States Code--
                                            (aa) a party to a master 
                                        netting agreement;
                                            (bb) a party to a 
                                        repurchase agreement; or
                                            (cc) a party to a swap 
                                        agreement;
                                    (IV) any other financial firm with 
                                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 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, unless that claim 
                                was acquired through devise, descent, 
                                or a divorce settlement;
                                    (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 September 20, 2017, and the claimant 
                        is--
                                    (I) a worker association or 
                                workplace association;
                                    (II) a pension plan;
                                    (III) a natural person who--
                                            (aa) is a beneficial owner 
                                        of a security issued by the 
                                        Commonwealth of Puerto Rico or 
                                        an instrumentality of the 
                                        Commonwealth 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 September 20, 2017, and the 
                        claimant is--
                                    (I) an ineligible investment 
                                company;
                                    (II) a closed-end company, as 
                                defined in section 5 of the Investment 
                                Company Act of 1940 (15 U.S.C. 80a-5);
                                    (III) a financial guaranty insurer;
                                    (IV) as defined in section 101 of 
                                title 11, United States Code--
                                            (aa) a party to a master 
                                        netting agreement;
                                            (bb) a party to a 
                                        repurchase agreement; or
                                            (cc) a party to a swap 
                                        agreement;
                                    (V) any other financial firm with 
                                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, unless 
                                that claim was acquired through devise, 
                                descent, or a divorce settlement;
                                    (VIII) the Special Master; or
                                    (IX) any other person that the 
                                Special Master determines is not an 
                                eligible person.
                            (iii) Eligibility of open-end mutual 
                        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
                    (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 subsection.
            (2) Limitations.--
                    (A) In general.--A claimant may not receive 
                compensation under this title that exceeds the amount 
                of the claim filed by the claimant under subsection 
                (a), or seek or receive compensation 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 paid by the claimant for the 
                assignment of that claim.

SEC. 205. PUERTO RICO DEBT RESTRUCTURING COMPENSATION FUND.

    (a) In General.--On 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, 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 provide 
        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 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 designated as 
                        an emergency requirement pursuant 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 emergency 
                        requirement pursuant to section 403(a) of S. 
                        Con. Res. 13 (111th Congress), the concurrent 
                        resolution on the budget for fiscal year 2010.
    (c) Distribution.--
            (1) In general.--Of the amounts appropriated into the Fund 
        under subsection (b)--
                    (A) 50 percent shall be made available to pay 
                claims of eligible persons described in section 
                204(c)(2)(A); and
                    (B) 50 percent shall be made available to pay 
                claims of eligible persons described in section 
                204(c)(2)(B).
            (2) Claims exceeding appropriated amounts.--If the claims 
        of eligible persons described in section 204(c)(2)(A) or of 
        eligible persons 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 promulgate 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 
Federal Register.
    (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 Master.--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) the term ``comprehensive 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 
        programs and projects financed with domestic or foreign debt, 
        in order to determine the legitimacy, lawfulness, transparency, 
        quality, efficacy, and efficiency thereof, considering legal 
        and financial aspects, and the economic, social, gender, 
        regional, ecological, national, and municipal impact thereof;
            (2) the term ``Commission'' means the Puerto Rico Public 
        Credit Comprehensive Audit Commission established under section 
        302; and
            (3) the term ``credit request'' means request or 
        application for credit by the Commonwealth of Puerto Rico, or 
        any instrumentality of the Commonwealth of Puerto Rico, to 
        obtain credit from a government or a banking or multilateral 
        financial system in the domestic or foreign private sector, 
        including any agreement, contract, or other form or method 
        relating to that request or application.

SEC. 302. ESTABLISHMENT; DISSOLUTION.

    (a) Establishment.--There is established an independent commission 
to be known as the Puerto Rico Public Credit Comprehensive Audit 
Commission.
    (b) Dissolution.--The Commission shall only be dissolved after the 
Commission completes or fulfills each 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 Commission 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 Assembly of the Commonwealth of Puerto Rico 
and the Governor 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 relating 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 conduct a 
        comprehensive audit of all public debt of the Commonwealth of 
        Puerto Rico issued during the period 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, contracts, and 
        other forms or methods employed by the Commonwealth of Puerto 
        Rico and any instrumentality 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 comprehensive audit 
        under paragraph (1), the Commission 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, economic, 
                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 increase or 
                extension of credit from the original amount of credit 
                obtained through the credit request;
                    (E) the economic, financial, and business 
                conditions agreed upon under the credit request;
                    (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 resources 
                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, transacted 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, transparency, 
                quality, efficacy, and efficiency of each credit 
                request, considering--
                            (i) the legal and financial aspects of the 
                        credit request; and
                            (ii) the economic, social, gender, 
                        regional, ecological, national, and municipal 
                        impact of the credit request.
    (c) Data Transparency Database.--The Commission shall establish and 
maintain a publicly available data transparency database that shall 
contain any information 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 Commonwealth 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 described in paragraph (1).

SEC. 306. MEMBERSHIP.

    (a) In General.--The Commission shall be composed of--
            (1) the Executive Director of the Puerto Rico Institute of 
        Statistics, or the designee of the Executive Director; and
            (2) the following individuals, who shall be appointed not 
        later than 180 days after the date of enactment of this Act by 
        the Governor of the Commonwealth of Puerto Rico to serve on the 
        Commission:
                    (A) One representative of each parliamentary 
                majority in the Legislative Assembly.
                    (B) One representative of each parliamentary 
                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.
                    (G) One professor of law from any public higher 
                education institution located in the Commonwealth of 
                Puerto Rico.
                    (H) One representative of the labor union sector in 
                the Commonwealth of Puerto Rico.
                    (I) One representative of the business community 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 
                one or more peer-reviewed journals 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.
            (2) Duties.--The Chairperson of the Commission shall--
                    (A) call and preside over meetings of the 
                Commission; and
                    (B) be the legal representative of the Commission.
            (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 Commission.
    (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) Executive Director of 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 Commonwealth of Puerto Rico, 
the individual who was the Executive Director of the Puerto Rico 
Institute of Statistics on the day before the date of such disbanding 
or reorganization shall be named to the Commission.
    (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 subsection, not later than 180 days after the 
expiration of that period, the President of the Senate of the 
Commonwealth 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 section 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 Department of the Treasury 
        the hiring of staff to conduct audits in accordance with the 
        rules and administrative procedures 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 commissions and technical 
        units relating to audits of public debt;
            (5) review and approve the annual budget and operational 
        plan of the Commission based on those devised by the Director 
        of the Office of Management and Budget;
            (6) as appropriate, request technical support from any 
        public institution, including by, as necessary, through the 
        request for the transfer, on a temporary assignment, of any 
        technical personnel required to carry out a specific program of 
        the Commission after stating the length of the period for which 
        the transfer will be required;
            (7) hold--
                    (A) a regular meeting not less than twice each 
                month; and
                    (B) a special meeting upon the request of not less 
                than three of the members of the Commission;
            (8) access the information necessary to discharge the 
        duties of the Commission;
            (9) file with the Legislative Assembly of the Commonwealth 
        of Puerto Rico and the Governor of the Commonwealth of Puerto 
        Rico periodic reports stating achievements of the Commission in 
        carrying out the duties of the Commission under section 304, 
        which shall include any recommendation or suggestion that the 
        Commission determines to be pertinent, including any relevant 
        recommendation of the Commission relating to the commencement 
        of any appropriate administrative, civil, or criminal action 
        relating to the findings of the Commission; and
            (10) propose rules and policies relating to strengthening 
        the procedures relating to audits of public debt as a permanent 
        duty of the Commonwealth of Puerto Rico.

SEC. 308. PROVISION OF REQUESTED INFORMATION.

    (a) In General.--Each entity, official, or former official of the 
Commonwealth of Puerto Rico shall provide any information requested by 
the Commission in carrying out the duties of the Commission under 
section 304 by summons or as required by law.
    (b) Order To Comply.--Any entity, official, or former official 
described in subsection (a) that does not obey a summons or request of 
the Commission for information required by the Commission to carry out 
the duties of the Commission under section 304, the appropriate 
district court of the Commonwealth of Puerto Rico shall, on the request 
of the Commission, issue an order compelling that entity, official, or 
former official to produce the requested information, as appropriate.
    (c) Contempt.--Any entity, official, or former official described 
in subsection (a) that does not comply with an order of the court under 
subsection (b) shall be held in contempt for failing to obey that 
order.

SEC. 309. ACCESS TO INFORMATION.

    (a) Public Documents.--
            (1) In general.--Any document, record, or information 
        relating to the public debt of the Commonwealth of Puerto Rico, 
        including any document relating to any public offering, 
        contract, agreement, order, or report detailing how funds 
        obtained are spent, or contract or agreements with a creditor 
        of the Commonwealth of Puerto Rico, shall be--
                    (A) classified as a public document; and
                    (B) made accessible to any interested party.
            (2) Confidentiality.--Any claim of confidentiality relating 
        to information described in paragraph (1) by any person, 
        including any entity, official, or former official of the 
        Commonwealth of Puerto Rico, shall be construed narrowly and in 
        favor of promoting transparency and the right of the public to 
        that information.
    (b) Confidential Information.--
            (1) In general.--The Commission shall have the authority to 
        obtain confidential information necessary to carry out the 
        duties of the Commission under section 304.
            (2) Confidentiality.--The Commission shall keep any 
        information described under subsection (a) confidential as 
        required under the Constitution of the Commonwealth of Puerto 
        Rico.
    (c) Rule of Construction.--Nothing in this title shall be construed 
to grant any special power to the Commission to conceal information 
from the public based on any rule relating to confidentiality. This 
title shall be interpreted broadly to favor the right of the public to 
information relating to the activities of the Commission.

SEC. 310. FUNDING.

    The Legislative Assembly of the Commonwealth of Puerto Rico shall 
provide the Commission with sufficient funds to carry out the duties of 
the Commission under section 304, including funds to pay fair 
compensation to members and staff of the Commission, based on the 
annual budget prepared for the Commission by the Office of Management 
and Budget, which shall be included in the general budget of the 
Commonwealth of Puerto Rico.

                         TITLE IV--SEVERABILITY

SEC. 401. SEVERABILITY.

    If any provision of this Act or the application of such provision 
to any person or circumstance is held to be invalid or 
unconstitutional, the remainder of this Act and the application of the 
provisions of this Act to any person or circumstance shall remain and 
shall not be affected thereby.
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