PROMESA

Summary

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, and impose penalties. 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, regulations, or executive orders 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 amends the Fair Labor Standards Act of 1938 to permit the governor, subject to the approval of the board, to designate a time period of no more than four years during which employers in Puerto Rico may pay certain employees less than the national minimum wage. The bill establishes a Revitalization Coordinator to designate critical infrastructure projects that meet specified 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.

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Documents

11 official files

• Referred in Senate (text)

  Referred in Senate · EN · 13 June 2016

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• Referred in Senate (PDF)

  Referred in Senate · EN · 13 June 2016

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• Engrossed in House (text)

  Engrossed in House · EN · 9 June 2016

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• Engrossed in House (PDF)

  Engrossed in House · EN · 9 June 2016

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• Passed House amended

  summary · EN · 9 June 2016

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• Reported in House (text)

  Reported in House · EN · 3 June 2016

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• Reported in House (PDF)

  Reported in House · EN · 3 June 2016

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• Reported to House amended, Part I

  summary · EN · 3 June 2016

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• Introduced in House (text)

  Introduced in House · EN · 18 May 2016

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• Introduced in House (PDF)

  Introduced in House · EN · 18 May 2016

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• Introduced in House

  summary · EN · 18 May 2016

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