Puerto Rico Assistance Act of 2015

Bill: 114-s-2381
Sponsor: Sen. Hatch, Orrin G. [R-UT]
Introduced: 2015-12-09 in the Senate
Policy area: Government Operations and Politics
Subjects: Accounting and auditing
American Samoa
Budget deficits and national debt
Budget process
Caribbean area
Congressional oversight
Credit and credit markets
Economic development
Economic performance and conditions
Employee benefits and pensions
Employment taxes
Financial crises and stabilization
Government corporations and government-sponsored enterprises
Government employee pay, benefits, personnel management
Government lending and loan guarantees
Government studies and investigations
Government trust funds
Guam
Health care costs and insurance
Health care coverage and access
Health programs administration and funding
Intergovernmental relations
Medicare
Northern Mariana Islands
Puerto Rico
Securities
Self-employed
State and local finance
State and local government operations
State and local taxation
U.S. territories and protectorates
Virgin Islands

Summary:
action_date: 2015-12-09
text: 

Puerto Rico Assistance Act of 2015

 
TITLE I--TAXES 
 
The bill provides for a reduction in employment and self-employment tax rates for qualified residents of Puerto Rico, American Samoa, Guam, the Northern Mariana Islands, and the Virgin Islands during a payroll tax holiday period beginning after December 31, 2015, and ending before January 1, 2021. 
 
TITLE II--PUBLIC PENSIONS 
 
The bill requires reports on: (1) the financial condition of Puerto Rico public pension plans, and (2) state and local government employee pension benefit plans. 
 
The bill amends the Internal Revenue Code to provide for annuity accumulation retirement plans for state and local government employees beginning after 2015.
 
TITLE III--PUERTO RICO FINANCIAL RESPONSIBILITY AND MANAGEMENT ASSISTANCE AUTHORITY 
 
The bill establishes the Puerto Rico Financial Responsibility and Management Assistance Authority to assist the Commonwealth government of Puerto Rico and its public corporations in achieving financial stability. The Authority shall initiate a control period for either the Commonwealth government or a public corporation by certifying that either such entity: (1) does not have sufficient revenue to meet is debt obligations, (2) has defaulted on a loan or other financial obligation, (3) is unable to meet payroll, (4) has a cash deficit, or (5) fails to make required pension payments. For each year in which the Commonwealth government or a public corporation is in a control period, the Governor of Puerto Rico or the emergency manager of a public corporation shall develop and submit to the Authority a financial plan and budget. A control period terminates when the Authority certifies that the Commonwealth government or its public corporations have adequate access to credit and have been solvent for a specified period. 
 
The bill sets forth standards to promote the financial stability of the Commonwealth government and its public corporations. 
 
The Authority may issue bonds at the request of the governor and pursuant to an act of the Legislative Assembly to raise revenue for the functioning of the Commonwealth government. 
 
The bill establishes the Office of the Chief Financial Officer of Puerto Rico. During a control period the Chief Financial Officer shall assist the governor in preparing financial plans and budgets and shall oversee other financial operations of the Commonwealth government. 
 
TITLE IV--ADDITIONAL REPORTS AND STUDIES 
 
The bill requires: (1) a report on the exclusion of U.S. territories from participation in health care exchanges, and (2) recommendations on the manner in which the federal government should more equitably allocate resources across U.S. territories.
 
TITLE V--TRANSITION ASSISTANCE
 
The bill authorizes appropriations, to remain available through FY2016, for use by the Authority to assist the transition of Puerto Rico to financial, fiscal, economic, and health care stability, the cost of which shall be offset by reductions in funding for the Prevention and Public Health Fund. 
 
TITLE VI--TECHNICAL ASSISTANCE 
 
The Department of the Treasury must provide technical assistance to U.S. territories (including Puerto Rico) for improved accounting and disclosure practices.


Legislative actions:
action_date: 2015-12-09
text: Read twice and referred to the Committee on Finance.
action_date: 2015-12-09
text: Introduced in Senate