PROMESA

Bill: 114-hr-4900
Sponsor: Rep. Duffy, Sean P. [R-WI-7]
Introduced: 2016-04-12 in the House
Policy area: Economics and Public Finance
Subjects: Accounting and auditing
Alternative and renewable resources
Bankruptcy
Budget deficits and national debt
Budget process
Caribbean area
Civil actions and liability
Congressional oversight
Credit and credit markets
Economic development
Economic performance and conditions
Electric power generation and transmission
Employee benefits and pensions
Energy efficiency and conservation
Energy prices
Environmental assessment, monitoring, research
Financial crises and stabilization
Government employee pay, benefits, personnel management
Government liability
Infrastructure development
Labor-management relations
Land transfers
Licensing and registrations
Navigation, waterways, harbors
Oil and gas
Puerto Rico
Roads and highways
Securities
Solid waste and recycling
State and local finance
U.S. territories and protectorates
Water use and supply
Wilderness and natural areas, wildlife refuges, wild rivers, habitats

Summary:
action_date: 2016-04-12
text: 

Puerto Rico Oversight, Management, and Economic Stability Act or PROMESA 

 
This bill addresses Puerto Rico's debt by establishing an oversight board, a process for restructuring debt, and expedited procedures for approving critical infrastructure projects. 
 
The bill establishes the Financial Oversight and Management Board to oversee the development of budgets and fiscal plans for Puerto Rico's instrumentalities and government. The board may issue subpoenas, certify voluntary agreements between creditors and debtors, seek judicial enforcement of its authority, impose penalties, and enforce territorial laws prohibiting public sector employees from participating in strikes or lockouts. 
 
The board's responsibilities include: 
 
 
 approving the governor's fiscal plan;
 
approving annual budgets; 
 
 enforcing budgets and ordering any necessary spending reductions; and 
 
 reviewing laws, contracts, rules, and regulations for compliance with the fiscal plan.
 
 
The bill establishes procedures and requirements for Puerto Rico to restructure its debt and designates the board as the representative of the debtor. The board may initiate a procedure for debt restructuring and submit or modify a plan of adjustment. 
 
The establishment of the board operates as an automatic stay of creditor actions to enforce claims against the government of Puerto Rico.
 
The bill establishes a Revitalization Coordinator to designate critical infrastructure projects that address an infrastructure emergency, have access to private capital, and meet other requirements. Critical projects approved by the oversight board are eligible for an expedited permitting process. 
 
The board shall divide creditors into pools based on the characteristics of the debt, and each pool may vote on a plan to restructure the debt. If at least two-thirds of the outstanding principal amount of a pool agrees with the plan, the pool may file a petition in court to bind the dissenting bondholders to the modification. 


Legislative actions:
action_date: 2016-04-28
text: Referred to the Subcommittee on Regulatory Reform, Commercial And Antitrust Law.
action_date: 2016-04-13
text: Committee Consideration and Mark-up Session Held.
action_date: 2016-04-12
text: Referred to the Committee on Natural Resources, and in addition to the Committees on the Judiciary, and Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2016-04-12
text: Referred to the Committee on Natural Resources, and in addition to the Committees on the Judiciary, and Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2016-04-12
text: Referred to the Committee on Natural Resources, and in addition to the Committees on the Judiciary, and Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2016-04-12
text: Referred to the Committee on Natural Resources, and in addition to the Committees on the Judiciary, and Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
action_date: 2016-04-12
text: Introduced in House
action_date: 2016-04-12
text: Introduced in House