Date: 2016-06-09
Speaker: JACKSON LEE (democrat)
Chamber: H

Mr. Speaker. I stand before you today to discuss H. Res. 770. the Rule providing for consideration of H.R. 5278Puerto Rico Oversight. Management. and Economic Stability Act (PROMESA). Our consideration of PROMESA must be a very thoughtful analysis of an outcome where the people of Puerto Rico will be empowered and be on a path towards progress where working families. their children and pensioners can be on a pathway towards a better future. PROEMSA is a bipartisan measure and effort to assist the Commonwealth of Puerto Rico in restructuring $70 billion in currently unpayable debt. an amount that exceeds the size of its entire economy. There are a total of 3.548 million people living on the island of Puerto Rico. Since 2006. Puerto Ricos economy has shrunk by more than 10 percent and shed more than 250.000 jobs. More than 45 percent of the Commonwealths residents live in povertythe highest poverty rate of any state or territory. Furthermore. its 11.6 percent unemployment rate is more than twice the national level. The challenges facing the people of Puerto Rico have ignited the largest wave of outmigration since the 1950s. and the pace continues to accelerate. More than 300.000 people have left Puerto Rico in the past decade with a record of 84.000 people leaving in 2014. Puerto Ricans suffer from high rates of forced migration due to the better opportunities offered in the United States compared to in the commonwealth. The gap between emigrants and immigrants has been continuously widening. Indeed. this increase in emigrants caused a population decline. the first in its history. and the stateside Puerto Rican population grew quickly. The median age of male Puerto Ricans is of working age from the ages of 2549 and similarly for women from the ages of 2559. Most of the homes are familyled. There are about 1.133.600 people in the civilian labor force but only 43 percent of them are employed. In addition. most of those working work in minimum wage jobs. Over 27 percent of the people in the Commonwealth are on welfare. The median income in Puerto Rico is only half that of the poorest U.S. state. Mississippi. but welfare benefits are about the same in Puerto Rico as in Mississippi. Swift action is needed in order to alleviate the pain and suffering of the people of Puerto Rico. There is no time to waste. H.R. 5278 appears to be an emergency default for Puerto Rico. an American territory where 3.5 million American citizens reside and continue to live in fear for their finances. their families and their future. On July 1. Puerto Rico will face nearly $2 billion worth of bond payments. Already. businesses have closed. public worker benefits are in jeopardy. hospital care is restricted and basic governmental functions are at risk. Should the Puerto Rican government default in early July. it faces certain litigation by its creditors. further erosion of its economy. and an inability to provide basic services to its people. This measure creates a process for the Commonwealth to restructure their bond debts. avoiding a default that could lead to a humanitarian catastrophe and instead allowing Puerto Rico to return to economic growth and fiscal balance. It would allow for the creation of a sevenmember Financial Oversight and Management board which will approve annual budgets and fiscal plans. This fiscal plan must be designed in a way that provides adequate funding for pension obligations. Also. I have serious concerns about the minimum wage provision of the measure. Specifically. regarding minimum wage and overtime. H.R. 5278 would extend the application of the existing federal subminimum wage of $4.25 an hour to those under the age of 25 in Puerto Rico for as long as four years. while all other federal jurisdictions pay the subminimum wage to those under the age of 20 for only up to the first ninety days of employment. We need to continue to work on ways to improve this measure to ascertain that American citizens in Puerto Rico are not languishing in poverty. Indeed. the measure contains a provision that provides for a delay on the new Department of Labor overtime pay regulation until a Government Accountability Office (GAO) study is completed and the Department of Labor determines whether the rule could negatively impact the economy of Puerto Rico. Additionally. the measure would create a "Revitalization Coordinator" that works closely with the Oversight Board to determine which energy and other infrastructure projects will be able to bypass local environmental. public health. and consumer protection laws. Let me underscore again that I have serious concerns about the provisions in this measure. not the least of which is the expansion of the subminimum wage. the exemption from the new overtime Rule. and the exclusion of protections for pension benefits. I commend my Democratic colleagues in their efforts of protecting the environment and wildlife refuge in the Commonwealth. I look forward to working with my Democratic colleagues and our Republican colleagues across the aisle in continuing to improve the provisions of the measure for the betterment of fellow American citizens in Puerto Rico. Let me conclude by highlighting that H.R. 5278 is not perfect but so long as we continue to work on a bipartisan basis in good faith. we can work towards our efforts of ensuring that Puerto Rico does not become a humanitarian crisis. We must continue to work together to be our brothers and sisters keepers. It is essential that we stand with the people of Puerto Rico and take action. It is essential that we continue to work towards an orderly process that promotes the livelihood of U.S. citizens in Puerto Rico and alleviates the crisis.