[Congressional Record Volume 162, Number 17 (Thursday, January 28, 2016)]
[Senate]
[Page S371]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 3100. Ms. WARREN (for herself, Mr. Blumenthal, Mr. Schumer, Mr.
Menendez, Mr. Murphy, Mr. Nelson, and Mrs. Gillibrand) submitted an
amendment intended to be proposed to amendment SA 2953 proposed by Ms.
Murkowski to the bill S. 2012, to provide for the modernization of the
energy policy of the United States, and for other purposes; which was
ordered to lie on the table; as follows:
At the end, add the following:
TITLE VI--PUERTO RICO EMERGENCY FINANCIAL STABILITY
SEC. 6001. SHORT TITLE.
This title may be cited as the ``Puerto Rico Emergency
Financial Stability Act of 2016''.
SEC. 6002. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds the following:
(1) The Commonwealth Government is confronted with a dire
fiscal emergency and liquidity crisis that imminently
threatens the welfare of the people of the Commonwealth,
affecting the provision of essential public services
including public safety, health care, and education that are
needed both to sustain the welfare of the people and the
economic ability of the Commonwealth to address any future
resolution of debts and legal obligations.
(2) A temporary stay on litigation with respect to debt
holders for the Commonwealth is essential to provide
breathing space to the Commonwealth, creditors, and the
Congress to determine an orderly process for the Commonwealth
to address any future resolution of legal obligations and to
provide the Commonwealth a path to sustainable growth; and
thereby, protect the lives of more than 3,500,000 citizens of
the United States living in the Commonwealth.
(3) The Commonwealth is in a state of fiscal emergency
brought on by, among other things, a combination of
accumulated operating deficits, cash shortages, management
inefficiencies, and excessive borrowing.
(4) The Commonwealth Government's debt is unusually
complex, with 18 different but inter-related issuers.
(A) There is an even larger number of creditor groups, each
of which may have divergent interests.
(B) The debt's unusual complexity will substantially
complicate any potential consensual restructuring in the
absence of Federal legislation to facilitate the
negotiations.
(5) This legislation, which includes a stay on litigation
by debt holders, can protect essential government services
and help the Commonwealth address its liabilities in an
orderly fashion, benefitting all stakeholders.
(A) A temporary stay on litigation is essential to
facilitate an orderly process for stabilizing, evaluating,
and comprehensively resolving the Commonwealth's fiscal
crisis.
(B) Avoiding a disorderly race to the courthouse will
benefit creditors as well as other stakeholders.
(C) Furthermore, the stay is only temporary.
(b) Purposes.--The purposes of this title are to--
(1) provide a limited period of time to permit Congress to
enact comprehensive relief for the Commonwealth, providing it
the necessary tools to address its economic and fiscal
crisis; and
(2) provide the Commonwealth Government with a tool it
needs to address an immediate and imminent crisis that is
unprecedented in the history of the United States.
SEC. 6003. EFFECTIVE DATE.
This title shall take effect as though enacted on December
18, 2015.
SEC. 6004. SEVERABILITY.
If any provision of this title or the application thereof
to any person or circumstance is held invalid, the remainder
of this title, or the application of that provision to
persons or circumstances other than those as to which it is
held invalid, is not affected thereby.
SEC. 6005. DEFINITIONS.
In this title:
(1) Bond.--The term ``Bond'' means a bond, loan, line of
credit, note, or other borrowing title, in physical or
dematerialized form, of which--
(A) the issuer, borrower, or guarantor is the Commonwealth
Government; and
(B) the date of issuance or incurrence of debt precedes the
date of enactment of this Act.
(2) Commonwealth.--The term ``Commonwealth'' means the
Commonwealth of Puerto Rico.
(3) Commonwealth government.--The term ``Commonwealth
Government'' means the government of the Commonwealth,
including all its political subdivisions, public agencies,
instrumentalities, and public corporations.
(4) Court.--The term ``court'' means the United States
District Court for the District of Puerto Rico.
(5) Other terms.--Any other term that is used in section
6006 and is defined in title 11, United States Code, has the
meaning given that term under title 11, United States Code.
SEC. 6006. AUTOMATIC STAY.
(a) Except as otherwise provided in this section, the
enactment of this title operates with respect to any claim,
debt, or cause of action related to a Bond as a stay,
applicable to all entities (as such term is defined in
section 101 of title 11, United States Code), of--
(1) the commencement or continuation, including the
issuance or employment of process, of a judicial,
administrative, or other action or proceeding against the
Commonwealth Government or to recover a claim against the
Commonwealth Government;
(2) the enforcement, against the Commonwealth Government or
against property of the Commonwealth Government, of a
judgment;
(3) any act to obtain possession of property of the
Commonwealth Government or of property from the Commonwealth
Government or to exercise control over property of the
Commonwealth Government;
(4) any act to create, perfect, or enforce any lien against
property of the Commonwealth Government;
(5) any act to create, perfect, or enforce against property
of the Commonwealth Government any lien to the extent that
such lien secures a claim;
(6) any act to collect, assess, or recover a claim against
the Commonwealth Government; and
(7) the setoff of any debt owing to the Commonwealth
Government against any claim against the Commonwealth
Government.
(b) The enactment of this title does not operate as a stay
under subsection (a) of this section of the continuation of,
including the issuance or employment of process, a judicial,
administrative, or other action or proceeding against the
Commonwealth Government that was commenced on or before the
date of enactment of this Act.
(c) Except as provided in subsection (d), (e), or (f), a
stay of an act under subsection (a) shall cease to have
effect as of April 1, 2016.
(d) On motion of a party in interest and after notice and a
hearing, the court may grant relief from a stay under
subsection (a)--
(1) for cause, including the lack of adequate protection of
a security interest in property of such party in interest; or
(2) with respect to a stay of an act against property under
subsection (a), if--
(A) the debtor does not have an equity in such property;
and
(B) such property is not necessary for the Commonwealth to
provide essential services;
(e) Thirty days after a request under subsection (d) of
this section for relief from the stay of any act against
property of the Commonwealth Government under subsection (a)
of this section, such stay is terminated with respect to the
party in interest making such request, unless the court,
after notice and a hearing, orders such stay continued in
effect pending the conclusion of, or as a result of, a final
hearing and determination under subsection (d) of this
section. A hearing under this subsection may be a preliminary
hearing, or may be consolidated with the final hearing under
subsection (d) of this section. The court shall order such
stay continued in effect pending the conclusion of the final
hearing under subsection (d) of this section if there is a
reasonable likelihood that the party opposing relief from
such stay will prevail at the conclusion of such final
hearing. If the hearing under this subsection is a
preliminary hearing, then such final hearing shall be
concluded not later than 30 days after the conclusion of such
preliminary hearing, unless the 30-day period is extended
with the consent of the parties in interest or for a specific
time which the court finds is required by compelling
circumstances.
(f) Upon request of a party in interest, the court, with or
without a hearing, shall grant such relief from the stay
provided under subsection (a) of this section as is necessary
to prevent irreparable damage to the secured interest of an
entity in property, if such interest will suffer such damage
before there is an opportunity for notice and a hearing under
subsection (d) or (e) of this section.
(g) No order, judgment, or decree entered in violation of
this section shall have any force or effect.
(h) In any hearing under subsection (d) or (e) concerning
relief from a stay--
(1) the party requesting such relief has the burden of
proof on the issue of the debtor's equity in property; and
(2) the party opposing such relief has the burden of proof
on all other issues.
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