[Congressional Record Volume 162, Number 104 (Tuesday, June 28, 2016)]
[Senate]
[Pages S4655-S4662]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 4882. Mr. MENENDEZ (for himself and Ms. Warren) submitted an
amendment intended to be proposed by him to the bill S. 2328, to
reauthorize and amend the National Sea Grant College Program Act, and
for other purposes; which was ordered to lie on the table; as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Puerto Rico Stability Act of
2016''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--TECHNICAL ASSISTANCE AND FISCAL REFORM
Subtitle A--Technical Assistance
Sec. 101. Definitions.
Sec. 102. Improving accounting and disclosure practices.
Sec. 103. Purchases by territory government.
Subtitle B--Fiscal Stability and Reform Boards and Chief Financial
Officers
Sec. 111. Establishment of Fiscal Stability and Reform Board.
Sec. 112. Establishment of Chief Financial Officer.
Sec. 113. Development and approval of fiscal plans.
Sec. 114. Severability.
TITLE II--ADJUSTMENTS OF DEBTS OF A TERRITORY OR ITS MUNICIPALITIES
Subtitle A--General Provisions
Sec. 201. Definitions.
Sec. 202. Who may be a debtor.
Sec. 203. Reservation of territorial power to control municipalities.
Sec. 204. Limitation on jurisdiction and powers of court.
Subtitle B--Initial Stay on Litigation
Sec. 211. Definitions.
Sec. 212. Effective date.
Sec. 213. Automatic stay.
Subtitle C--Adjudication and Judicial Review
Sec. 221. Petition and proceedings relating to petition.
Sec. 222. Jurisdiction.
Sec. 223. Venue.
Sec. 224. Selection of presiding judge.
Sec. 225. Appellate review.
Sec. 226. Applicable rules of procedure.
Sec. 227. Severability.
Subtitle D--The Plan
Sec. 231. Filing of plan of adjustment.
Sec. 232. Confirmation.
Subtitle E--Additional Provisions
Sec. 241. Compensation of professionals.
Sec. 242. Interim compensation.
Sec. 243. Applicability of other sections.
TITLE III--PUERTO RICO CHAPTER 9 UNIFORMITY
Sec. 301. Short title.
Sec. 302. Amendment.
Sec. 303. Effective date; application of amendment.
Sec. 304. Severability.
TITLE I--TECHNICAL ASSISTANCE AND FISCAL REFORM
Subtitle A--Technical Assistance
SEC. 101. DEFINITIONS.
In this title:
(1) Board.--The term ``Board'' means a Fiscal Stability and
Reform Board established in accordance with section 111.
(2) Chief financial officer.--The term ``Chief Financial
Officer'' means a Chief Financial Officer established in
accordance with section 112.
(3) Compliant budget.--The term ``compliant budget'' means
a budget that is prepared in accordance with--
(A) modified accrual accounting standards; and
(B) the applicable Fiscal Plan.
(4) Covered territorial instrumentality.--The term
``covered territorial instrumentality'' means a territorial
instrumentality designated by the Board pursuant to section
111(b) to be subject to the requirements of subtitle B.
(5) Covered territory.--The term ``covered territory''
means a territory for which a Board has been established
under section 111.
(6) Fiscal plan.--The term ``Fiscal Plan'' means a fiscal
plan for a covered territory submitted and approved in
accordance with section 113.
(7) Governor.--The term ``Governor'' means the chief
executive of a territory.
(8) Legislature.--
(A) In general.--The term ``legislature'' means the
legislative body responsible for enacting the laws of a
territory.
(B) Exclusion.--The term ``legislature'' does not include
Congress.
(9) Modified accrual accounting standards.--The term
``modified accrual accounting standards'' means accounting
standards
[[Page S4656]]
issued by the Governmental Accounting Standards Board that
recognize--
(A) revenues as they become available and measured; and
(B) expenditures as liabilities are incurred.
(10) Office.--The term ``Office'' means an Office of the
Chief Financial Officer established in accordance with
section 112.
(11) Territorial government.--The term ``territorial
government'' means the government of a covered territory,
including each territorial instrumentality of the government
of the covered territory.
(12) Territorial instrumentality.--
(A) In general.--The term ``territorial instrumentality''
means a political subdivision, public agency,
instrumentality, or public corporation of a territory.
(B) Exclusion.--The term ``territorial instrumentality''
does not include a Board.
(13) Territory.--The term ``territory'' means--
(A) the Commonwealth of Puerto Rico;
(B) Guam;
(C) American Samoa;
(D) the Commonwealth of the Northern Mariana Islands; or
(E) the United States Virgin Islands.
SEC. 102. IMPROVING ACCOUNTING AND DISCLOSURE PRACTICES.
(a) In General.--On request of the applicable Governor,
legislature, or Board (if any), the Secretary of the Treasury
(referred to in this section as the ``Secretary'') may
provide technical assistance to a territory that the
Secretary determines to be eligible for technical assistance
relating to fiscal and financial practices.
(b) Inclusions.--In providing technical assistance under
subsection (a), the Secretary may, in association with any
Federal department or agency or the Federal Reserve System,
including any Federal Reserve Bank, provide assistance
relating to--
(1) information technology upgrades;
(2) improving economic forecasting, including multiyear
fiscal forecasting capabilities;
(3) budgeting, tax collection, cash management, and
spending controls;
(4) ensuring that agencies in the territory use financial
systems that are compatible with the systems of other
agencies of the territory and Federal agencies to provide for
consistent, timely financial reporting and visibility into
expenses;
(5) improving and expanding economic indicators for the
territory to make available for the territory the indicators
regularly used to track regional conditions on the United
States mainland; and
(6) such other matters as the Secretary, in consultation
with the territory, determines to be appropriate.
(c) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out
this section.
SEC. 103. PURCHASES BY TERRITORY GOVERNMENT.
Section 302 of the Omnibus Insular Areas Act of 1992 (48
U.S.C. 1469e) is amended to read as follows:
``SEC. 302. INSULAR GOVERNMENT PURCHASES.
``The governments of the Commonwealth of Puerto Rico, Guam,
American Samoa, the Commonwealth of the Northern Mariana
Islands, and the United States Virgin Islands are authorized
to make purchases through the General Services
Administration.''.
Subtitle B--Fiscal Stability and Reform Boards and Chief Financial
Officers
SEC. 111. ESTABLISHMENT OF FISCAL STABILITY AND REFORM BOARD.
(a) Request.--Effective on the date on which the Governor
of a territory signs a resolution adopted by the legislature
of the territory to request the establishment of a Fiscal
Stability and Reform Board under this subtitle, a Board is
established for the territory.
(b) Board Oversight of Territorial Instrumentalities.--
(1) Designation.--
(A) In general.--A Board, at such time as the Board
determines to be appropriate, may designate a territorial
instrumentality as a covered territorial instrumentality that
is subject to the requirements of this subtitle.
(B) Budgets and reports.--A Board may require the Governor
or the Chief Financial Officer of the applicable covered
territory to submit to the Board such annual budgets or
monthly or quarterly reports relating to a covered
territorial instrumentality as the Board determines to be
necessary.
(C) Inclusion in fiscal plan.--The Governor of the
applicable covered territory shall include in the applicable
Fiscal Plan a description of each requirement under section
113(c) for each covered territorial instrumentality.
(2) Exclusion.--
(A) In general.--A Board, at such time as the Board
determines to be appropriate, may exclude any territorial
instrumentality of the covered territory from the
requirements of this subtitle.
(B) Treatment.--A territorial instrumentality excluded
pursuant to this paragraph shall not be considered to be a
covered territorial instrumentality.
(c) Exemption From Liability for Claims.--A Board, and each
member of the Board, shall not be liable for any obligation
of, or claim against, the applicable covered territory
resulting from any action of the Board to carry out this
subtitle.
(d) Membership.--
(1) In general.--A Board shall consist of 9 members who
meet the qualifications described in paragraph (6), and of
whom:
(A) 2 members shall be appointed by the President in
accordance with the requirements described in paragraph (5).
(B) 2 members shall be appointed by the Governor of the
applicable covered territory.
(C) 1 member shall be appointed by the chief justice of the
highest appellate court of the applicable covered territory.
(D) 4 members shall be appointed by the legislature of the
applicable covered territory as follows:
(i) If the legislature has 2 chambers--
(I) 1 member shall be appointed by the political party
holding the most seats in the lower chamber of the
legislature;
(II) 1 member shall be appointed by the political party
holding the second-most seats in the lower chamber of the
legislature;
(III) 1 member shall be appointed by the political party
holding the most seats in the upper chamber of the
legislature; and
(IV) 1 member shall be appointed by the political party
holding the second-most seats in the upper chamber of the
legislature.
(ii) If the legislature has 1 chamber--
(I) 2 members shall be appointed by the political party
holding the most seats in the legislature; and
(II) 2 members shall be appointed by the political party
holding the second-most seats in the legislature.
(2) Chairperson.--The member appointed under paragraph
(1)(C) shall serve as the chairperson of the Board.
(3) Period of appointment.--
(A) In general.--Except for the member appointed under
paragraph (1)(C) and for the initial terms of members, each
member of the Board shall be--
(i) appointed for a term of 4 years; and
(ii) eligible for reappointment.
(B) Initial terms.--
(i) For members appointed under paragraph (1)(A), as
designated by the President at the time of appointment--
(I) 1 member shall be appointed for a term of 2 years; and
(II) 1 member shall be appointed for a term of 4 years.
(ii) For members appointed under paragraph (1)(B)--
(I) both members shall be appointed to a term to terminate
6 months after the next gubernatorial election; and
(II) in the event that the Governor of a territory signs a
resolution adopted by the legislature of the territory to
request the establishment of a Board under this subtitle
within 12 months of the next gubernatorial election, both
members shall be appointed to a term of 2 years.
(iii) For members appointed under paragraph (1)(C), the
member shall remain appointed for the life of the Board.
(iv) For members appointed under paragraph (1)(D), as
designated by the appointing entity at the time of
appointment--
(I) if the legislature has 2 chambers--
(aa) 1 member shall be appointed by the political party
holding the most seats in the lower chamber of the
legislature to a term to terminate 6 months after the next
legislative election of the applicable territory;
(bb) 1 member shall be appointed by the political party
holding the second-most seats in the lower chamber of the
legislature to a term to terminate 6 months after the next
legislative election of the applicable territory;
(cc) 1 member shall be appointed by the political party
holding the most seats in the upper chamber of the
legislature to a term to terminate 30 months after the next
legislative election of the applicable territory; and
(dd) 1 member shall be appointed by the political party
holding the second-most seats in the upper chamber of the
legislature to a term to terminate 30 months after the next
legislative election of the applicable territory; and
(II) if the legislature has 1 chamber--
(aa) 1 member shall be appointed by the political party
holding the most seats in the legislature to a term to
terminate 6 months after the next legislative election of the
applicable territory;
(bb) 1 member shall be appointed by the political party
holding the second-most seats in the legislature to a term to
terminate 6 months after the next legislative election of the
applicable territory;
(cc) 1 member shall be appointed by the political party
holding the most seats in the legislature to a term to
terminate 30 months after the next legislative election of
the applicable territory; and
(dd) 1 member shall be appointed by the political party
holding the second-most seats in the legislature to a term to
terminate 30 months after the next legislative election of
the applicable territory.
(4) Vacancies.--
(A) In general.--Each member shall remain appointed as long
as the applicable qualifications of appointment under
paragraph (6) remain satisfied, except that any member may be
removed by the original appointing entity.
(B) Effect.--Any vacancy in the Board--
(i) shall not affect the powers of the Board; and
(ii) shall be filled in the same manner as the original
appointment by the original appointing entity as soon as
practicable after the date on which the vacancy occurs,
subject to the approval described in paragraph (3).
(C) Term.--A member appointed to fill a vacancy shall serve
for the remainder of the term to which the member was
appointed.
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(5) Approval of membership.--A new member appointed shall
be approved by the full board, excluding the member that the
new member was appointed to replace.
(6) Requirements for presidential appointments.--
(A) Timing; required consultation.--As soon as practicable
after the date on which a territory submits to the President
a resolution described in subsection (a), and after
consultation with the appropriate committees of Congress and
the Governor of the applicable covered territory, the
President shall appoint members to the Board under paragraph
(1)(A).
(B) Removal.--The President may remove a member appointed
by the President only for cause.
(7) Qualifications.--
(A) In general.--An individual meets the qualifications for
membership on the Board if the individual has knowledge and
expertise relating to finance, management, economics, or the
organization or operation of business or government.
(B) Connection to covered territory.--Not less than 6
members shall have knowledge and expertise relating to the
history, socioeconomic circumstances, and heritage of the
applicable covered territory.
(C) Residence in covered territory.--Not less than 6
members shall maintain a primary residence in the applicable
covered territory.
(D) Special limitation on membership.--No current member of
the applicable territory's legislature shall be eligible to
serve on the Board.
(8) Conflicts of interest.--
(A) In general.--An individual appointed to serve as a
member of the Board--
(i) shall be subject to--
(I) the Federal conflict of interest requirements described
in section 208 of title 18, United States Code, except with
respect to subsection (b) of that section; and
(II) the conflict of interest disclosure requirements under
title I of the Ethics in Government Act of 1978 (5 U.S.C.
App.); and
(ii) shall not have any other conflict of interest relating
to the duties of the Board, including ownership of any debt
security of--
(I) the applicable territorial government; or
(II) a territorial instrumentality.
(B) Definition.--For purposes of subparagraph (A)(ii), the
term ``conflict of interest'' includes the interests of an
organization in which the individual is serving as officer,
director, trustee, general partner or employee, or any person
or organization with whom the individual is negotiating or
has any arrangement concerning prospective employment.
(C) 3-year restriction.--
(i) In general.--Any individual who serves as a member of
the Board shall not, during the 3-year period beginning on
the date on which membership on the Board terminates,
knowingly make, with the intent to influence, any
communication to or appearance before any member of the Board
or Chief Financial Officer on behalf of any other person
(except the United States or a State or local government).
(ii) Penalty.--Any individual who violates clause (i) shall
be subject to the penalties described in section 216 of title
18, United States Code.
(iii) Violations.--If a member of the Board is determined
to be in violation of the requirements described in
subparagraph (A), the member shall be removed from membership
on the Board and may be subject to additional actions or
penalties set forth under Federal ethics rules.
(e) No Compensation for Service.--Each member of the Board
shall--
(1) serve without compensation; and
(2) be allowed travel expenses, including per diem in lieu
of subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from the home or regular place of business
of the member in the performance of the duties of the Board.
(f) Bylaws.--
(1) In general.--As soon as practicable after the
appointment of all members to the Board, the Board shall
adopt bylaws, rules, and procedures to govern the activities
of the Board under this subtitle, including procedures for
hiring experts and consultants.
(2) Treatment.--The bylaws, rules, and procedures adopted
pursuant to this subsection shall be--
(A) public documents; and
(B) on adoption, submitted by the Board to--
(i) the President; and
(ii) the Governor and legislature of the applicable covered
territory.
(g) Staff.--
(1) In general.--On the approval of the chairperson, the
Board may appoint such staff as are necessary to enable the
Board to perform the duties of the Board.
(2) Eligible individuals.--For purposes of chapter 11 of
title 18, United States Code, and section 2635 of title 5,
Code of Federal Regulations, or any successor thereto, the
executive director and other staff employed by the Board
shall be considered employees of an Executive agency (as
defined in section 105 of title 5, United States Code),
including a member of the staff who is--
(A) a private citizen;
(B) an employee of the applicable territorial government;
or
(C) an employee of the Federal Government.
(3) Detailees.--
(A) Federal employees.--On request of the chairperson of
the Board, the head of a Federal department or agency may
detail to the Board, on a reimbursable or nonreimbursable
basis, and in accordance with the Intergovernmental Personnel
Act of 1970 (42 U.S.C. 4701 et seq.), any of the personnel of
the department or agency to assist the Board in the
performance of the duties of the Board.
(B) Territorial government employees.--On request of the
chairperson of the Board, the head of any department or
agency of the applicable territorial government may detail to
the Board, on a reimbursable or nonreimbursable basis, any of
the personnel of the department or agency to assist the Board
in the performance of the duties of the Board.
(4) Officers.--
(A) Appointment.--The chairperson may appoint to the Board
an executive director or such other officers as the
chairperson determines to be necessary to assist the Board in
the performance of the duties of the Board.
(B) Term; payment.--An executive director or officer
appointed pursuant to subparagraph (A) shall serve for such
period and be paid such compensation as the Board determines
to be appropriate.
(h) Funding.--
(1) In general.--The Board--
(A) may use funds provided by the applicable territorial
government to ensure sufficient funds are made available to
cover all expenses of the Board; and
(B) shall submit to the Governor and legislature of the
applicable covered territory for inclusion in the annual
budget appropriations process of the applicable territorial
government a report describing any request and use of funds
provided by the applicable territorial government.
(2) Local funding.--A covered territory shall designate a
dedicated territorial government source of funding, not
subject to subsequent legislative appropriation, sufficient
to support the annual costs of the Board, as determined by
the Board, to carry out this subtitle.
(i) Powers.--
(1) Hearings.--The Board may, for the purpose of performing
the duties of the Board--
(A) hold such hearings, meet and act at such times and
places, take such testimony, receive such evidence, and
administer such oaths as the Board considers to be
appropriate; and
(B) require, by subpoena or otherwise, the attendance and
testimony of such witnesses and the production of such books,
records, correspondence, memoranda, papers, documents, tapes,
and materials as the Board considers to be appropriate.
(2) Issuance and enforcement of subpoenas.--
(A) Issuance.--A subpoena issued under paragraph (1)(B)
shall--
(i) bear the signature of the chairperson of the Board; and
(ii) be served by any person or class of persons designated
by the chairperson to serve a subpoena under paragraph
(1)(B).
(B) Enforcement.--In the case of contumacy or failure to
obey a subpoena issued under paragraph (1)(B), the United
States district court for the district in which the
subpoenaed person resides, is served, or may be found may
issue an order requiring the person--
(i) to appear at any designated place to testify; or
(ii) to produce documentary or other evidence.
(C) Noncompliance.--Any failure to obey the order of a
court under this paragraph may be punished by the court as a
contempt of court.
(3) Entrance into contracts.--The Board, or any of the
staff of the Board on behalf of the Board, may enter into
such contracts as the Board considers appropriate to carry
out the duties of the Board.
(j) Duties.--
(1) Monitoring and recommendations.--
(A) In general.--Based on information provided in a monthly
report submitted under section 112(f)(1)(A), the Board may
recommend to the Governor and legislature of the applicable
covered territory policy adjustments that should be made to
ensure the expenditures and revenues of the adopted budget
for the applicable fiscal year are balanced.
(2) Improvements to operational efficiency.--
(A) In general.--The Board shall work with the applicable
territorial government to improve the operational efficiency
of the applicable territorial government, including the
efforts of the applicable territorial government--
(i) to strengthen financial recordkeeping and reporting;
(ii) to control the number and cost of government
contracts;
(iii) to collect and enforce the collection of taxes;
(iv) to promote economic growth;
(v) to improve Federal grant management; and
(vi) to increase the effective use of information
technology.
(B) Report.--Within a reasonable period of time, the Board
shall submit to the applicable territorial government a
report describing recommendations to improve the operational
efficiency of the applicable territorial government,
including efforts described in subparagraph (A).
(3) Review of budgets; quarterly reports.--
(A) Budget proposed by governor.--
[[Page S4658]]
(i) Submission to board.--The Governor of the applicable
covered territory shall submit to the Board for review a
proposed budget for each fiscal year, in consultation with
the Chief Financial Officer and based on the applicable
forecast of revenues submitted by the Chief Financial
Officer, by not later than the earlier of--
(I) the date that is 120 days before the first day of the
fiscal year covered by the proposed budget; and
(II) the date that is 60 days before the date by which the
Governor is required under applicable law to submit to the
legislature of the applicable covered territory a proposed
budget for the applicable fiscal year.
(ii) Determination of compliant budget.--Not later than the
date that is 15 days after the date on which a Board receives
a proposed budget under clause (i), the Board shall--
(I) determine whether the proposed budget is a compliant
budget; and
(II)(aa) if the proposed budget is a compliant budget--
(AA) approve the compliant budget; and
(BB) submit the compliant budget to the legislature of the
applicable covered territory; or
(bb) if the proposed budget is not a compliant budget,
provide to the Governor of the applicable covered territory--
(AA) a notice of violation that includes a description of
any corrective action suggested by the Board; and
(BB) an opportunity to correct the violation by requiring
the Governor to submit to the Board a revised budget by not
later than the date that is 15 days after the date on which
the notice of violation under subitem (AA) is provided.
(iii) Revised budgets.--Not later than the date that is 7
days after the date on which the Board receives a revised
budget under clause (ii)(II)(bb)(BB), the Board shall--
(I) determine whether the revised budget is a compliant
budget in consultation with the Chief Financial Officer; and
(II)(aa) if the revised budget is a compliant budget--
(AA) approve the compliant budget; and
(BB) submit the compliant budget to the legislature of the
applicable covered territory; or
(bb) if the revised budget is not a compliant budget--
(AA) issue a notice of noncompliance;
(BB) publicly submit recommendations of the Board and the
Chief Financial Officer for adjustments that should be made
to ensure the adopted budget of the territorial government
for the applicable fiscal year is a compliant budget;
(CC) submit the noncompliant budget to the legislature of
the applicable covered territory with recommendations of the
Board and the Chief Financial Officer for adjustments that
should be made to ensure the adopted budget of the
territorial government for the applicable fiscal year is a
complaint budget; and
(DD) issue a directive that the legislature shall strive to
adopt the Board's recommendations in the budget of the
territorial government for the applicable fiscal year.
(B) Budget approval by legislature.--
(i) In general.--The legislature of the applicable covered
territory shall submit to the Board the budget adopted by the
legislature not later than--
(I) the date that is 30 days before the first day of each
applicable fiscal year; or
(II) the date previously approved in writing by the Board
not to exceed 60 days after the first day of the applicable
fiscal year, if a date was approved in writing.
(ii) Determination by board.--Not later than the date that
is 7 days after the date on which the Board receives an
adopted budget submitted under clause (i), the Board shall--
(I) determine whether the adopted budget is a compliant
budget in consultation with the Chief Financial Officer; and
(II)(aa) if the adopted budget is a compliant budget, issue
a compliance certification for the compliant budget; or
(bb) if the budget is not a compliant budget--
(AA) issue a certificate of noncompliance;
(BB) publicly submit recommendations of the Board and the
Chief Financial Officer for adjustments that should be made
to the budget of the territorial government for the upcoming
fiscal year to ensure the revenues and expenditures are
consistent with the Fiscal Plan;
(CC) provide to the Governor and legislature of the
applicable covered territory a certificate of noncompliance
that includes a description of any recommendations of the
Board and the Chief Financial Officer for adjustments that
should be made to the budget of the territorial government
for the upcoming fiscal year to ensure the revenues and
expenditures are consistent with the Fiscal Plan; and
(DD) issue a directive that the Governor and the
legislature shall strive to adopt the Board's recommendations
in the budget of the territorial government for the upcoming
fiscal year.
(C) Quarterly reports.--On receipt of a quarterly report
from the Chief Financial Officer under section 112(f)(1)(B),
the Board shall--
(i) conduct a review to determine whether the actual
quarterly revenues and expenses for the applicable
territorial government are in compliance with the applicable
approved budget; and
(ii) if the Board determines that the actual quarterly
revenues and expenses for the applicable territorial
government are not in compliance with the applicable approved
budget under clause (i), provide to the Governor
recommendations for adjustments that should be made to ensure
the revenues and expenditures of the adopted budget of the
applicable territorial government for the applicable fiscal
year are balanced.
(4) Issuance of debt.--No territorial government may,
without providing prior written and public notice to the
Board, issue debt or guarantee, exchange, modify, repurchase,
redeem, or enter into a similar transaction with respect to
the debt of the territorial government.
(5) Authority to review discretionary tax waivers.--
(A) In general.--Not later than the date that is 180 days
after the date of the establishment of a Board under
subsection (a), the Governor of the applicable covered
territory shall submit to the Board an audited report
documenting each outstanding discretionary tax waiver
agreement to which any entity of the applicable territorial
government is a party, including each agreement pursuant to
which the applicable entity of the territorial government
waived, changed the due date of, or changed the amount of
taxes due.
(B) New tax waivers.--Effective on the date on which a
Board is established under subsection (a), no new tax waiver
agreement may be executed by the applicable territorial
government without prior approval of the Board.
(k) Termination of Board.--A Board shall terminate on
certification by the Board that--
(1) the Board has been in operation for not less than 3
years and the applicable territorial government has adequate
access, on an unsecured basis, to short-term and long-term
credit markets at reasonable interest rates to meet the
borrowing needs of the territorial government using a
compliant budget; or
(2) for not less than 3 consecutive fiscal years prior to
the certification, the expenditures made by the applicable
territorial government for each fiscal year did not exceed
the revenues of the territorial government during that fiscal
year, using a compliant budget.
SEC. 112. ESTABLISHMENT OF CHIEF FINANCIAL OFFICER.
(a) Establishment of Office.--
(1) In general.--Effective on the date on which the
Governor of a territory signs a resolution adopted by the
legislature of the territory to request the establishment of
a Fiscal Stability and Reform Board under this subtitle, an
Office of the Chief Financial Officer is established for the
territory, which shall be headed by the Chief Financial
Officer of the territory.
(2) Authority to request.--Effective with the appointment
of the first Chief Financial Officer under subsection (d),
the Chief Financial Officer may request other offices be
consolidated within the office, subject to the approval of
the applicable territory's legislature, with the function and
personnel of the offices transferred to the office.
(3) Retention of authority.--Notwithstanding paragraph (2),
the applicable territory shall retain its authority to
appoint and remove personnel and agency heads of consolidated
offices.
(4) Conflicts of interest.--
(A) In general.--An individual appointed to serve as a
Chief Financial Officer--
(i) shall be subject to--
(I) the Federal conflict of interest requirements described
in section 208 of title 18, United States Code, except with
respect to subsection (b) of that section; and
(II) the conflict of interest disclosure requirements under
title I of the Ethics in Government Act of 1978 (5 U.S.C.
App.); and
(ii) shall not have any other conflict of interest relating
to the duties of the Chief Financial Officer, including
ownership of any debt security of--
(I) the applicable territorial government; or
(II) a territorial instrumentality.
(B) Definition.--For purposes of subparagraph (A)(ii), the
term ``conflict of interest'' includes the interests of an
organization in which the individual is serving as officer,
director, trustee, general partner or employee, or any person
or organization with whom the individual is negotiating or
has any arrangement concerning prospective employment.
(C) 3-year restriction.--
(i) In general.--Any individual who serves as Chief
Financial Officer shall not, during the 3-year period
beginning on the date on which his or her tenure as Chief
Financial Officer terminates, knowingly make, with the intent
to influence, any communication to or appearance before any
member of the Board or Chief Financial Officer on behalf of
any other person (except the United States or a State or
local government).
(ii) Penalty.--Any individual who violates clause (i) shall
be subject to the penalties described in section 216 of title
18, United States Code.
(iii) Violations.--If a Chief Financial Officer is
determined to be in violation of the requirements described
in this subparagraph, the member shall be removed from the
position of Chief Financial Officer and may be subject to
additional actions or penalties set forth under Federal
ethics rules.
(b) Staff.--
(1) In general.--The Chief Financial Officer may appoint
such staff as are necessary
[[Page S4659]]
to enable the Office to perform the duties of the Office.
(2) Eligible individuals.--For purposes of chapter 11 of
title 18, United States Code, and section 2635 of title 5,
Code of Federal Regulations, or any successor thereto, the
executive director and other staff employed by the office
shall be considered employees of an Executive agency (as
defined in section 105 of title 5, United States Code),
including a member of the staff who is--
(A) a private citizen;
(B) an employee of the applicable territorial government;
or
(C) an employee of the Federal Government.
(3) Detailees.--
(A) Federal employees.--On request of the Chief Financial
Officer, the head of a Federal department or agency may
detail to the Office, on a reimbursable or nonreimbursable
basis, and in accordance with the Intergovernmental Personnel
Act of 1970 (42 U.S.C. 4701 et seq.), any of the personnel of
the department or agency to assist the Office in the
performance of the duties of the Office.
(B) Territorial government employees.--On request of the
Chief Financial Officer, the head of any department or agency
of the applicable territorial government may detail to the
Office, on a reimbursable or nonreimbursable basis, any of
the personnel of the department or agency to assist the
Office in the performance of the duties of the Office.
(c) Funding.--
(1) In general.--The Chief Financial Officer--
(A) may use funds provided by the applicable territorial
government to ensure sufficient funds are made available to
cover all expenses of the Office; and
(B) shall submit to the Governor and legislature of the
applicable covered territory for inclusion in the annual
budget appropriations process of the applicable territorial
government a report describing any request and use of funds
provided by the applicable territorial government.
(2) Local funding.--A covered territory shall designate a
dedicated territorial government source of funding, not
subject to subsequent legislative appropriation, sufficient
to support the annual costs of the Office, as determined by
the Chief Financial Officer, to carry out this subtitle.
(d) Appointment.--
(1) In general.--The Chief Financial Officer shall be
appointed by the applicable territory's Governor as follows:
(A) Prior to the appointment of the Chief Financial
Officer, the Board may submit recommendations for the
appointment to the applicable territory's Governor.
(B) In consultation with the Board and the applicable
territory's legislature, the applicable territory's Governor
shall nominate an individual for appointment and notify the
applicable territory's legislature of the nomination.
(C) After the expiration of the 7-day period that begins on
the date the applicable territory's Governor notifies the
legislature of the nomination under subparagraph (B), the
applicable territory's Governor shall notify the Board of the
nomination.
(D) The nomination shall be effective subject to approval
by a majority vote of the Board.
(2) Removal.--The Chief Financial Officer may be removed
for cause by the Board or by the applicable territory's
Governor with the approval of the Board.
(3) Salary.--The Chief Financial Officer shall be paid at
an annual rate determined by the Board as the Board
determines to be appropriate.
(e) Powers.--
(1) Issuance and enforcement of subpoenas.--
(A) Purpose.--The Chief Financial Officer may, for the
purpose of performing the duties of the office, require, by
subpoena or otherwise, the attendance and testimony of such
witnesses and the production of such books, records,
correspondence, memoranda, papers, documents, tapes, and
materials as the Chief Financial Officer considers to be
appropriate.
(B) Issuance.--A subpoena issued under paragraph (1)(B)
shall--
(i) bear the signature of the Chief Financial Officer; and
(ii) be served by any person or class of persons designated
by the Chief Financial Officer to serve a subpoena under
paragraph (1)(B).
(C) Enforcement.--In the case of contumacy or failure to
obey a subpoena issued under paragraph (1)(B), the United
States district court for the district in which the
subpoenaed person resides, is served, or may be found may
issue an order requiring the person--
(i) to appear at any designated place to testify; or
(ii) to produce documentary or other evidence.
(D) Noncompliance.--Any failure to obey the order of a
court under this paragraph may be punished by the court as a
contempt of court.
(2) Entrance into contracts.--The Chief Financial Officer,
or any of the staff of the office on behalf of the Chief
Financial Officer, may enter into such contracts as the Chief
Financial Officer considers appropriate to carry out the
duties of the office.
(f) Functions.--In addition to any other duties necessary
and proper to fulfill the purposes of the Office, the Chief
Financial Officer shall have the following duties:
(1) Monthly and quarterly reports.--The Chief Financial
Officer, in consultation with the applicable territorial
government, shall submit to the Board:
(A) A report not later than the date that is 7 days after
the last day of each month to provide--
(i) an accounting of the cash balance of the applicable
territorial government; and
(ii) a description of the amount of actual expenditures and
revenues of the applicable territorial government, as
compared to the amounts budgeted, for the applicable fiscal
year.
(B) Not later than the date that is 15 days after the last
day of each quarter of a fiscal year, the Chief Financial
Officer in consultation with the Governor of the applicable
covered territory shall submit to the Board, in such form as
the Board may require, a report describing--
(i) the actual cash revenues, cash expenditures, and cash
flows of the territorial government for the preceding
quarter; as compared to
(ii) the actual cash revenues, cash expenditures, and cash
flows contained in the approved budget for the applicable
quarter.
(C) A report under subparagraph (B) shall include--
(i) a description of any accrued revenues and expenditures
during the applicable quarter, as compared to the accrued
revenues and expenditures contained in the approved budget
for the quarter; and
(ii) a balance sheet, if the Board requires a balance
sheet.
(2) Revenue forecasting.--Not later than the date that is
75 days before the date on which the Governor of the
applicable covered territory is required under applicable law
to submit to the legislature of the applicable covered
territory a proposed budget for the upcoming fiscal year, the
Chief Financial Officer shall submit to the applicable
territorial government and Board a forecast of revenues for
the upcoming fiscal year to be used to develop the budget.
(A) Requirements.--A forecast under paragraph (2) shall
be--
(i) based on applicable law; and
(ii) prepared in accordance with the applicable Fiscal
Plan.
(3) Financial and accounting information.--The Chief
Financial Officer shall ensure the following:
(A) All financial information presented by the applicable
territory is presented in a manner, and is otherwise
consistent with any requirements promulgated by the Board.
(B) Appropriate procedures are implemented and institute
such programs, systems, and personnel policies within the
Officer's authority, to ensure that the applicable
territory's budget, accounting and personnel control systems
and structures are synchronized for budgeting and control
purposes on a continuing basis.
(C) Appropriate forms of receipts, vouchers, bills, and
claims to be used by all agencies, offices, and
instrumentalities of the applicable territorial government.
(4) Accounting management.--The Chief Financial Officer
shall:
(A) Supervise the applicable territory's financial
transactions to ensure adequate control of revenues and
resources, and to ensure that appropriations are not
exceeded.
(B) Maintain systems of accounting and internal control
designed to provide--
(i) full disclosure of the financial impact of the
activities of the applicable territorial government;
(ii) adequate financial information needed by the
applicable territorial government for management purposes;
(iii) effective control over, and accountability for, all
funds, property, and other assets of the applicable
territorial government; and
(iv) reliable accounting results to serve as the basis for
preparing and supporting agency budget requests and
controlling the execution of the budget of the applicable
territorial government.
(C) Maintain accounting of all public funds belonging to or
under the control of the applicable territorial government
(or any department or agency of the applicable territorial
government).
(D) Maintain accounting of all investment and invested
funds of the applicable territorial government or in
possession of the applicable territorial government in a
fiduciary capacity.
(E) Submit to the applicable territorial government a
financial statement of the applicable territorial government,
containing such details and at such times as the applicable
territorial government may specify.
(5) Certifying contracts.--All contracts (whether directly
or through delegation) shall be certified by the Chief
Financial Officer prior to execution as to the availability
of funds to meet the obligations expected to be incurred by
the applicable territorial government under such contracts
during the year.
(6) Auditing.--The Chief Financial Officer shall perform
internal audits of accounts and operations and records of the
applicable territorial government, including the examination
of any accounts or records of financial transactions, giving
due consideration to the effectiveness of accounting systems,
internal control, and related administrative practices of the
departments and agencies of the applicable territorial
government.
SEC. 113. DEVELOPMENT AND APPROVAL OF FISCAL PLANS.
(a) In General.--Not later than the date that is 60 days
before the date on which the
[[Page S4660]]
Governor of an applicable covered territory is required under
applicable law to submit to the legislature of the applicable
covered territory a proposed budget for the upcoming fiscal
year, the Governor, in consultation with the Chief Financial
Officer, shall develop and submit to the Board and applicable
territorial government a Fiscal Plan for the applicable
territorial government in accordance with this section.
(b) Initial Fiscal Plan.--The Governor of an applicable
covered territory in consultation with the Chief Financial
Officer shall develop an initial Fiscal Plan in accordance
with subsection (a) within 90 days of the Governor of the
applicable covered territory signing a resolution adopted by
the legislature of the territory to request the establishment
of a Fiscal Stability and Reform Board under this subtitle,
or not later than the date that is 60 days before the date on
which the Governor of the applicable covered territory is
required under applicable law to submit to the legislature of
the applicable covered territory a proposed budget for the
upcoming fiscal year, whichever comes chronologically first.
(c) Requirements.--
(1) In general.--A Fiscal Plan shall, to the maximum extent
practicable, with respect to the applicable territorial
government--
(A) provide for estimates of revenues and expenditures in
accordance with modified accrual accounting standards and
based on--
(i) applicable laws; or
(ii) specific laws that require enactment in order to
reasonably achieve the projections of the Fiscal Plan;
(B) ensure the funding of essential public services;
(C) provide full funding to cover all existing public
pension obligations;
(D) provide for the elimination of budget gaps in
financing;
(E) provide for a reduction in the debt burden to a level
that is sustainable;
(F) improve fiscal governance;
(G) enable the achievement of fiscal targets;
(H) create independent forecasts of revenue for the period
covered by the Fiscal Plan; and
(I) not impede investments to promote sustained economic
growth.
(2) Term.--A Fiscal Plan shall be in effect for a period of
not less than 5 years.
(3) Transparency.--A Fiscal Plan shall be made publicly
available no less than 15 days after final approval as
specified within subsection (d).
(d) Approval by Board.--
(1) Requirement.--The Governor of a covered territory shall
not submit to the legislature of the applicable covered
territory an annual budget for a fiscal year unless the
Fiscal Plan has been approved for that fiscal year in
accordance with this subsection.
(2) Approval.--Not later than the date that is 15 days
after the date on which the Governor submits a Fiscal Plan to
the Board under subsection (a), the Board shall--
(A) certify the Fiscal Plan; or
(B) fail to certify the Fiscal Plan and provide to the
Governor recommendations for revisions to the Fiscal Plan.
(3) Revised fiscal plan.--
(A) In general.--Not later than the date that is 15 days
after the date on which the Board submits recommendations to
the Governor under paragraph (2)(B), the Governor shall
submit to the Board a revised Fiscal Plan.
(B) Approval; disapproval.--Not later than the date that is
7 days after the date on which the Governor submits to the
Board a revised Fiscal Plan under subparagraph (A), the Board
shall--
(i) certify the revised Fiscal Plan; or
(ii) disapprove the revised Fiscal Plan.
(4) Development by board.--
(A) In general.--
(i) Nonaction by governor.--If the Governor of a covered
territory fails to submit to the Board a revised Fiscal Plan
on or before the date specified in paragraph (3)(A), the
Board shall develop and submit to the Governor a final
revised Fiscal Plan not later than the date that is 22 days
after the date on which recommendations are provided to the
Governor under paragraph (2)(B).
(ii) Disapproval by board.--If the Board disapproves a
revised Fiscal Plan under paragraph (3)(B)(ii), the Board
shall develop and submit to the Governor a final revised
Fiscal Plan not later than the date that is 7 days after the
date of disapproval.
SEC. 114. SEVERABILITY.
If any provision of this subtitle or the application of
such provision to any person or circumstance is held to be
unconstitutional, the remainder of this subtitle, and the
application of the provision to any other person or
circumstance, shall not be affected.
TITLE II--ADJUSTMENTS OF DEBTS OF A TERRITORY OR ITS MUNICIPALITIES
Subtitle A--General Provisions
SEC. 201. DEFINITIONS.
In this title:
(1) Affiliate.--The term ``affiliate'' means, in addition
to the definition made applicable in a case under this title
by section 243(a)--
(A) for a Territory, any municipality of the Territory; and
(B) for a municipality, the governing Territory and any of
the Territory's other municipalities.
(2) 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 municipality
or Territory as defined by paragraphs (5) and (11); and
(B) the date of issuance or incurrence of debt precedes the
date of enactment of this Act.
(3) Court.--The term ``court'' means the district court for
the territory in which the debtor is located or, for any
territory in which the debtor is located that does not have a
district court, the United States District Court for the
District of Hawaii.
(4) Debtor.--The term ``debtor'' means the Territory or
municipality concerning which a case under this title has
been commenced.
(5) Municipality.--The term ``municipality''--
(A) includes any political subdivision, public agency,
instrumentality or instrumentality of a Territory; and
(B) should be broadly construed to effectuate the purposes
of this title.
(6) Property of the estate.--The term ``property of the
estate'', when used in section 541 of title 11, United States
Code, made applicable in a case under this title by section
243(a) means property of the debtor.
(7) Special revenues.--The term ``special revenues'' means
receipts derived from the ownership, operation, or
disposition of projects or systems of the debtor that are
primarily used or intended to be used primarily to provide
transportation, utility, or other services, including the
proceeds of borrowings to finance the projects or systems.
(8) Special tax payer.--The term ``special tax payer''
means record owner or holder of legal or equitable title to
real property against which a special assessment or special
tax has been levied the proceeds of which are the sole source
of payment of an obligation issued by the debtor to defray
the cost of an improvement relating to such real property.
(9) Special tax payer affected by the plan.--The term
``special tax payer affected by the plan'' means special tax
payer with respect to whose real property the plan proposes
to increase the proportion of special assessments or special
taxes referred to in paragraph (2) assessed against such real
property.
(10) State.--The term ``State'' when used in a section of
title 11, United States Code, made applicable in a case under
this title by section 243(a) means State or Territory when
used in reference to a the relationship of a State to the
municipality of the State.
(11) Territory.--The term ``Territory'' means the
Commonwealth of Puerto Rico, Guam, American Samoa, the
Commonwealth of the Northern Mariana Islands, or the United
States Virgin Islands.
(12) Trustee.--The term ``trustee'' when used in a section
of title 11, United States Code, made applicable in a case
under this title by section 243(a) means debtor, except as
provided in section 926 of title 11, United States Code.
SEC. 202. WHO MAY BE A DEBTOR.
An entity may be a debtor under this title if the entity--
(1) is--
(A) a Territory that has requested the establishment of a
Fiscal Stability and Reform Board in accordance with section
111; or
(B) a municipality--
(i) of a Territory that has requested the establishment of
a Fiscal Stability and Reform Board in accordance with
section 111; and
(ii) that has been specifically authorized, in its capacity
as a municipality or by name, to be a debtor under this title
by Territory law, or by a governmental officer or
organization empowered by Territory law to authorize such
entity to be a debtor under this title; and
(2) desires to effect a plan to adjust its debts.
SEC. 203. RESERVATION OF TERRITORIAL POWER TO CONTROL
MUNICIPALITIES.
Subject to the limitations imposed by title III, this title
does not limit or impair the power of a Territory to control,
by legislation or otherwise, a municipality of or in the
Territory in the exercise of the political or governmental
powers of such municipality, including expenditures for such
exercise, but--
(1) a Territory law prescribing a method of composition of
indebtedness of such municipality may not bind any creditor
that does not consent to such composition; and
(2) a judgment entered under such a law may not bind a
creditor that does not consent to such composition.
SEC. 204. LIMITATION ON JURISDICTION AND POWERS OF COURT.
Subject to the limitations imposed by title II,
notwithstanding any power of the court, unless the debtor
consents or the plan so provides, the court may not, by any
stay, order, or decree, in the case or otherwise, interfere
with--
(1) any of the political or governmental powers of the
debtor;
(2) any of the property or revenues of the debtor; or
(3) the debtor's use or enjoyment of any income-producing
property.
Subtitle B--Initial Stay on Litigation
SEC. 211. DEFINITIONS.
In this subtitle, any term not defined under section 201
that is defined in title 11, United States Code, has the
meaning given that term under title 11, United States Code.
SEC. 212. EFFECTIVE DATE.
Effective on the date on which the Governor of a territory
signs a resolution adopted by the legislature of the
territory to request the establishment of a Fiscal Stability
[[Page S4661]]
and Reform Board under section 111, section 213 shall take
effect.
SEC. 213. AUTOMATIC STAY.
(a) Except as otherwise provided in this section, the
adoption of a resolution under section 111 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 a
Territory or municipality, or to recover a claim against a
Territory or municipality;
(2) the enforcement, against a Territory or municipality or
against property of a Territory or municipality, of a
judgment;
(3) any act to obtain possession of property of a Territory
or municipality, or of property from a Territory or
municipality, or to exercise control over property of a
Territory or municipality;
(4) any act to create, perfect, or enforce any lien against
property of a Territory or municipality;
(5) any act to create, perfect, or enforce against property
of a Territory or municipality any lien to the extent that
such lien secures a claim;
(6) any act to collect, assess, or recover a claim against
a Territory or municipality; and
(7) the setoff of any debt owing to a Territory or
municipality against any claim against a Territory or
municipality.
(b) The adoption of a resolution under section 111 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 a Territory or municipality that was
commenced on or before the date of the adoption of the
resolution under section 111.
(c) Except as provided in subsection (d), (e), or (f), a
stay of an act under subsection (a) shall cease to have
effect no later than 12 months after the date of the adoption
of a resolution under section 111, or upon a the commencement
of a voluntary case under this title by the filing with the
bankruptcy court of a petition by an entity that may be a
debtor under section 202, whichever comes chronologically
first.
(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 a Territory or
municipality 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 a Territory or municipality 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.
Subtitle C--Adjudication and Judicial Review
SEC. 221. PETITION AND PROCEEDINGS RELATING TO PETITION.
(a) A voluntary case under this title is commenced by the
filing with the bankruptcy court of a petition by an entity
that may be a debtor under section 202.
(b) Notwithstanding section 202 and subsection (a), a case
under this title concerning an unincorporated tax or special
assessment district that does not have its own officials is
commenced by the filing under subsection (a) of a petition by
the governing authority of the district or the board or body
having authority to levy taxes or assessments to meet the
obligations of such district.
(c) After any objection to the petition, the court, after
notice and a hearing, may dismiss the petition if--
(1) the debtor did not file the petition in good faith; or
(2) the petition does not meet the requirements of this
title.
(d) If the petition is not dismissed under subsection (c),
the court shall order relief under this title.
(e) The court may not--
(1) on account of an appeal from an order for relief, delay
any proceeding under this title in the case in which the
appeal is being taken; or
(2) order a stay of such proceeding pending such appeal.
(f) The reversal on appeal of a finding of jurisdiction
shall not affect the validity of any debt incurred that is
authorized by the court under section 364(c) or 364(d) of
title 11, United States Code.
(g) For purposes of this title, the Governor may take any
action necessary on behalf of the debtor to prosecute the
debtor's case; including--
(1) filing a petition;
(2) submitting or modifying a plan of adjustment; or
(3) otherwise generally submitting filings in relation to
the restructuring case with the court.
(h) Debtors under this title may file petitions or submit
or modify plans of adjustment jointly if they are affiliates.
(i) Except as provided in subsection (j), this title shall
take effect on the date of the enactment of this Act.
(j) This title shall apply with respect to--
(1) cases commenced under this title on or after the date
of the enactment of this Act; and
(2) debts, claims, and liens created before, on, or after
such date.
SEC. 222. JURISDICTION.
(a) The district courts shall have original and exclusive
jurisdiction of a case under this title.
(b) Section 157 of title 28, United States Code, shall
apply to a case under this title.
SEC. 223. VENUE.
Venue shall be proper in--
(1) with respect to a Territory, the district court for the
Territory or, for any territory that does not have a district
court, in the United States District Court for the District
of Hawaii; and
(2) with respect to a municipality, the district court for
the Territory in which the municipality is located or, for
any territory that does not have a district court, in the
United States District Court for the District of Hawaii.
SEC. 224. SELECTION OF PRESIDING JUDGE.
(a) For cases in which the debtor is a Territory, the chief
judge of the court of appeals for the circuit embracing the
district in which the case is commenced shall designate a
bankruptcy judge to conduct the case.
(b) For cases in which the debtor is not a Territory, and
the case has not been jointly filed with the case of a
Territory or there is no case in which the affiliate
Territory is a debtor, the chief judge of the court of
appeals for the circuit embracing the district in which the
case is commenced shall designate a bankruptcy judge to
conduct the case.
(c) A bankruptcy judge designated under subsection (a) or
(b) shall be subject to the provisions of chapter 6 of title
28, United States Code.
(d) Notwithstanding section 156, of title 28, United States
Code, the bankruptcy judge designated under subsection (a) or
(b) may appoint as many law clerks and additional judicial
assistants as the judge deems necessary to assist in
presiding over cases commenced under this title.
SEC. 225. APPELLATE REVIEW.
(a) Except as provided in subsection (b), subsections (a)
and (d) of section 158 of title 28, United States Code, shall
apply to a case under this title.
(b) Only an order confirming a plan of adjustment or
dismissing a petition shall be considered final for purposes
of section 158(a) of title 28, United States Code.
SEC. 226. APPLICABLE RULES OF PROCEDURE.
For all cases brought under this title, the Federal Rules
of Bankruptcy Procedure shall apply.
SEC. 227. 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.
Subtitle D--The Plan
SEC. 231. FILING OF PLAN OF ADJUSTMENT.
The debtor shall file a plan for the adjustment of the
debtor's debts. If such a plan is not filed with the
petition, the debtor shall file such a plan at such later
time as the court fixes.
SEC. 232. CONFIRMATION.
(a) A special tax payer may object to confirmation of a
plan.
(b) The court shall confirm the plan if--
(1) the plan complies with the provisions of title 11,
United States Code, made applicable in a case under this
title by section 243(a);
(2) the plan complies with the provisions of this title;
(3) the debtor is not prohibited by law from taking any
action necessary to carry out the plan;
[[Page S4662]]
(4) except to the extent that the holder of a particular
claim has agreed to a different treatment of such claim, the
plan provides that on the effective date of the plan each
holder of a claim of a kind specified in section 507(a)(2) of
title 11, United States Code, will receive on account of such
claim cash equal to the allowed amount of such claim;
(5) any regulatory or electoral approval necessary under
applicable nonbankruptcy law in order to carry out any
provision of the plan has been obtained, or such provision is
expressly conditioned on such approval;
(6) the plan is in the best interests of creditors and is
feasible;
(7) the plan is consistent with the Fiscal Plan submitted
under title II;
(8) the plan ensures that accrued pension liability in the
Commonwealth Employee Retirement System and Teacher
Retirement System shall be treated as senior, first priority
secured debt, senior to any existing senior secured debt by
statutory lien and notwithstanding any other provision of law
may be satisfied by payment from the general revenues of the
Commonwealth, provided that the maximum claim to be treated
as secured by this senior, first priority secured statutory
lien of an active annuitant shall be equal to the Pension
Benefit Guaranty Corporation maximum guarantee for
participants in a single-employer plan and that the maximum
claim to be treated as secured by this senior, first priority
secured statutory lien of an active or vested inactive
participant in said pension funds shall be equal to the full
benefit accrued by such active or inactive participant; and
(9) feasible and equitable the plan does not unduly impair
the claims of holders of bonds that are--
(A) general obligations of the Territory to which the
Territory pledged the full faith and credit and the taxing
power of the Territory; and
(B) identified in an applicable nonbankruptcy law as having
a first claim on available Territory resources.
Subtitle E--Additional Provisions
SEC. 241. COMPENSATION OF PROFESSIONALS.
(a) After notice to the parties in interest and the United
States Trustee and a hearing, the court may award to a
professional person employed by the debtor, in the debtor's
sole discretion, or employed by a committee under section
1103 of title 11, United States Code--
(1) reasonable compensation for actual, necessary services
rendered by the professional person, or attorney and by any
paraprofessional person employed by any such person; and
(2) reimbursement for actual, necessary expenses.
(b) The court may, on its own motion or on the motion of
any party in interest, award compensation that is less than
the amount of compensation that is requested.
(c) In determining the amount of reasonable compensation to
be awarded to a professional person, the court shall consider
the nature, the extent, and the value of such services,
taking into account all relevant factors, including--
(1) the time spent on such services;
(2) the rates charged for such services;
(3) whether the services were necessary to the
administration of, or beneficial at the time at which the
service was rendered toward the completion of, a case under
this title;
(4) whether the services were performed within a reasonable
amount of time commensurate with the complexity, importance,
and nature of the problem, issue, or task addressed;
(5) with respect to a professional person, whether the
person is board certified or otherwise has demonstrated skill
and experience in the restructuring field; and
(6) whether the compensation is reasonable based on the
customary compensation charged by comparably skilled
practitioners in cases other than cases under this title or
title 11, United States Code.
(d) The court shall not allow compensation for--
(1) unnecessary duplication of services; or
(2) services that were not--
(A) reasonably likely to benefit the debtor; or
(B) necessary to the administration of the case.
(e) The court shall reduce the amount of compensation
awarded under this section by the amount of any interim
compensation awarded under section 242, and, if the amount of
such interim compensation exceeds the amount of compensation
awarded under this section, may order the return of the
excess to the debtor.
(f) Any compensation awarded for the preparation of a fee
application shall be based on the level and skill reasonably
required to prepare the application.
SEC. 242. INTERIM COMPENSATION.
A debtor's attorney, or any professional person employed by
the debtor, in the debtor's sole discretion, or employed by a
committee under section 1103 of title 11, United States Code,
may apply to the court not more than once every 120 days
after an order for relief in a case under this title, or more
often if the court permits, for such compensation for
services rendered before the date of such an application or
reimbursement for expenses incurred before such date as is
provided under section 241. After notice and a hearing, the
court may allow to such applicant such compensation or
reimbursement.
SEC. 243. APPLICABILITY OF OTHER SECTIONS.
(a) Sections 101, 102, 104, 105, 106, 107, 108, 112, 333,
344, 347(b), 349, 350(b), 351, 361, 362, 364(c), 364(d),
364(e), 364(f), 365, 366, 501, 502, 503, 504, 506, 507(a)(2),
509, 510, 524(a)(l), 524(a)(2), 544, 545, 546, 547, 548,
549(a), 549(c), 549(d), 550, 551, 552, 553, 555, 556, 557,
559, 560, 561, 562, 922, 923, 924, 925, 926, 927, 928, 929,
930, 942, 944, 945, 946, 1102, 1103, 1109, 1111(b), 1113,
1122, 1123(a)(l), 1123(a)(2), 1123(a)(3), 1123(a)(4),
1123(a)(5), 1123(b), 1123(d), 1124, 1125, 1126(a), 1126(b),
1126(c), 1126(e), 1126(f), 1126(g), 1127(d), 1128,
1129(a)(2), 1129(a)(3), 1129(a)(6), 1129(a)(8), 1129(a)(10),
1129(b)(l), 1129(b)(2)(A), 1129(b)(2)(B), 1142(b), 1143,
1144, and 1145 of title 11, United States Code, apply in a
case under this title.
(b) A term used in a section of title 11, United States
Code, made applicable in a case under this title by
subsection (a) has the meaning defined for such term for the
purpose of such applicable section, unless such term is
otherwise defined in section 201.
(c) A section made applicable in a case under this title by
subsection (a) that is operative if the business of the
debtor is authorized to be operated is operative in a case
under this title.
(d) Solely for purposes of this title, a reference to
``this title'', ``this chapter'', or words of similar import
in a section of title 11, United States Code, made applicable
in a case under this title by subsection (a) or to ``this
title'', ``title 11'', or words of similar import in a
section of title 28, United States Code, made applicable in a
case under this title by section 222 or 225 or in the Federal
Rules of Bankruptcy Procedure made applicable in a case under
this title by section 226 shall be deemed to be a reference
to this title.
TITLE III--PUERTO RICO CHAPTER 9 UNIFORMITY
SEC. 301. SHORT TITLE.
This title may be cited as the ``Puerto Rico Chapter 9
Uniformity Act of 2015''.
SEC. 302. AMENDMENT.
Section 101(52) of title 11, United States Code, is amended
to read as follows:
``(52) The term `State' includes Puerto Rico and, except
for the purpose of defining who may be a debtor under chapter
9 of this title, includes the District of Columbia.''.
SEC. 303. EFFECTIVE DATE; APPLICATION OF AMENDMENT.
(a) Effective Date.--Except as provided in subsection (b),
this Act and the amendment made by this Act shall take effect
on the date of the enactment of this Act.
(b) Application of Amendment.--The amendment made by this
title shall apply with respect to--
(1) cases commenced under title 11 of the United States
Code on or after the date of the enactment of this Act; and
(2) debts, claims, and liens created before, on, or after
such date.
SEC. 304. SEVERABILITY.
If any provision of this title or any amendment made by
this title, or the application of such provision or amendment
to any person or circumstance, is held to be
unconstitutional, the remainder of this title and the
amendments made by this title, or the application of that
provision or amendment to other persons or circumstances,
shall not be affected.
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