,i  #aad? ,,congress  #a/ ,session  ,h4 
,r4 #cgbe  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,octob] #h1 #bjae ,mr4
 ,pi]luisi introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,f9ancial   
,s]vices  ,a ,,bill  ,to au?orize !     
,secret>y ( ! ,treasury to gu>antee     
pr9cipal & int]e/ paym5ts on bonds issu$
 by ! gov]nm5t ( ! ,u4,s4 t]ritory (    
,pu]to ,rico1 includ+ its public        
corporations & in/rum5talities1 on !    
condition t ! gov]nm5t ( ! t]ritory     
demon/rates mean+ful improvem5t 9 !     
managem5t ( its public f9ances1 & = o!r 
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,pu]to ,rico ,f9ancial     
,improvem5t & ,bond ,gu>antee ,act (    
#bjae4  #b4 ,purpose & s5se ( ,congress 
7a7 ,purpose ,! purpose ( ?is ,act is to
 emp[] ! ,secret>y ( ! ,treasury to     
facilitate access ( ! gov]nm5t ( ,pu]to 
,rico to capital m>kets =--  7#a7       
imm$iate %ort-t]m f9anc+ ne$s1  7#b7    
capital exp5ditures1 &  7#c7 debt       
ref9anc+1  by gu>antee+ ! pr9cipal &    

int]e/ paym5ts on bonds issu$ by !      
gov]nm5t ( ,pu]to ,rico ^u det]m9ation  
by ! ,secret>y t c]ta9 conditions relat+
 to f9ancial acc\ntability 9 ,pu]to     
,rico h be5 met4  7b7 ,s5se ( ,congress 
,x is ! s5se ( ,congress t--  7#a7      
,pu]to ,rico1 z a t]ritory1 is treat$   
inequitably & inconsi/5tly by ,f$]al law
 & policy1 & t su* treatm5t has         
contribut$ significantly to ! curr5t    
f9ancial di/ress ( ! gov]nm5t ( ,pu]to  
,rico2  7#b7 consequ5tly1 !re exi/s a   
,f$]al responsibility & ne$ to help !   
gov]nm5t ( ,pu]to ,rico ga9 access to ! 
capital m>kets on reasonable t]ms2  7#c7
 /rong] f9ancial controls1 budget+      
processes1 & acc\ntability measures %\ld
 be implem5t$ by ! gov]nm5t ( ,pu]to    
,rico 9 ord] to improve its f9ancial /&+
 & cr$itwor?9ess2 &  7#d7 x is 9 !      
national int]e/ ( ! ,unit$ ,/ates to    
r$uce ! risk ( default by ! gov]nm5t (  
,pu]to ,rico on its bond paym5ts1 to    
ensure ess5tial public s]vices c be     
provid$ 9 ! t]ritory1 & to promote      

economic gr[? & responsible borr[+ 9 !  
t]ritory4  #c4 ,def9itions ,= purposes (
 ?is ,act3 7#a7 ,co/ ,) respect to a    
gu>antee1 ! t]m co/ has ! mean+ giv5 su*
 t]m "u section #ejb ( ! ,f$]al ,cr$it  
,re=m ,act ( #aiij 7#b ,u4,s4,c4        
#ffa;a74  7#b7 ,gu>antee ,! t]m         
gu>antee-- 7,a7 has ! mean+ giv5 ! t]m  
loan gu>antee 9 section #ejb ( ! ,f$]al 
,cr$it ,re=m ,act ( #aiij 7#b ,u4,s4,c4 
#ffa;a72 &  7,b7 includes a loan        
gu>antee commitm5t 7z def9$ 9 su*       
section #ejb74  7#c7 ,in/rum5tality !re(
 ,) respect to ,pu]to ,rico1 ! t]m      
in/rum5tality !re( means any political  
subdivision1 in/rum5tality1 or          
in/rum5tality ( a political subdivision 
( ,pu]to ,rico4  7#d7 ,obligation ,! t]m
 obligation means a bond t is gu>ante$  
"u ?is ,act4  7#e7 ,secret>y ,! t]m     
,secret>y means ! ,secret>y ( !         
,treasury4  ,i ,f9ancial improvem5t &   
bond gu>antees = ,pu]to ,rico  #aja4    
,bond gu>antees  7a7 ,g5]al au?ority ,! 
,secret>y ( ! ,treasury is au?oriz$ to  

gu>antee bonds issu$ by ! gov]nm5t (    
,pu]to ,rico or any in/rum5tality !re( t
 are issu$ solely = ! purpose ( f9anc+  
capital projects or ref9anc+ exi/+ debt4
  7b7 ,limitation ,! au?ority grant$ "u 
subsection 7a7 does n ext5d to bonds    
issu$ to f9ance op]ational exp5ses1     
except ) respect to tax rev5ue          
anticipation notes4  #ajb4 ,t]ms &      
conditions  7a7 ,9 g5]al ,a gu>antee    
made "u ?is ,act may gu>antee up to #ajj
 p]c5t ( ! pr9cipal & int]e/ ( !        
obligation4  7b7 ,receipt ( reque/ ,a   
gu>antee may only be made "u ?is ,act   
if-- 7#a7 ! ,secret>y fir/ receives a   
reque/ = su* gu>antee1 9 writ+1 f !     
,gov]nor ( ,pu]to ,rico1 along ) ! t]ms1
 includ+ ! purpose & am\nt1 ( ! bond to 
be issu$ = :i* ! gu>antee is reque/$2 & 
7#b7 ! ,secret>y det]m9es1 pursuant to  
section #ajc7;b71 t ! gov]nm5t ( ,pu]to 
,rico &1 if applicable1 any             
in/rum5tality !re(1 has demon/rat$      
mean+ful improvem5t 9 ! managem5t ( its 
f9ances4  7c7 ,obligation requirem5ts   

7#a7 ,maturity ,an obligation %all      
require full repaym5t ov] a p]iod n to  
exce$ #cj ye>s4  7#b7 ,int]e/ rate ,an  
obligation %all be> int]e/ at a rate t  
does n exce$ a level t ! ,secret>y      
det]m9es appropriate4  7d7 ,agreem5t    
docum5t  7#a7 ,m9imum requirem5ts ,a    
gu>antee agreem5t %all be writt5 &      
execut$ = any gu>antee made "u ?is ,act 
9 ord] t su* gu>antee may h legal       
effect1 &1 at a m9imum1 %all include    
appropriate language detail+ ! t]ms &   
conditions set =? 9 ?is ,act = su*      
gu>antee4  7#b7 ,additional t]ms &      
conditions ,a gu>antee agreem5t may     
include su* detail$ t]ms & conditions 9 
addition to ^? set =? 9 ?is section & z 
! ,secret>y det]m9es appropriate to     
protect ! int]e/s ( ! ,unit$ ,/ates 9   
case ( default & to ensure repaym5t4    
7#c7 ,au?ority ( ! ,secret>y ,!         
,secret>y is au?oriz$ to agree to any   
modification1 am5dm5t1 or waiv] or any  
su* t]m or condition z ! ,secret>y deems
 desirable to protect ! int]e/s ( !     

,unit$ ,/ates4  7e7 ,adm9i/rative       
exp5ses  7#a7 ,9 g5]al ,! ,secret>y %all
 *>ge & collect fees = gu>antees made "u
 ?is ,act 9 am\nts ! ,secret>y det]m9es 
are suffici5t to cov] applicable        
adm9i/rative exp5ses4  7#b7             
,availability ,fees collect$ "u ?is     
subsection %all be available to !       
,secret>y1 )\t fur!r appropriation1 to  
pay = ! adm9i/rative exp5ses ( c>ry+ out
 ?is ,act4  7f7 ,limitation ,a gu>antee 
may be made "u ?is ,act only if !       
,secret>y det]m9es t !re is a reasonable
 prospect ( repaym5t ( ! pr9cipal &     
int]e/ on ! bond to be gu>ante$4  #ajc4 
,f9ancial improvem5t guidel9es &        
det]m9ation  7a7 ,exam9ation1 guidel9es1
 & recomm5dations  7#a7 ,9 g5]al ,n lat]
 ?an #abj days aft] ! date ( ! enactm5t 
( ?is ,act1 ! ,secret>y %all-- 7,a7     
exam9e ! f9ancial managem5t practices ( 
! gov]nm5t ( ,pu]to ,rico &             
in/rum5talities !re( & id5tify specific 
areas 9 su* practices t may ne$         
improvem5t2 &  7,b7 e/abli% guidel9es & 

recomm5dations = ! gov]nm5t ( ,pu]to    
,rico & in/rum5talities !re( to use z a 
basis = mak+ improvem5ts 9 its f9ancial 
managem5t practices & 9 det]m9+ :e!r to 
make a gu>antee reque/$ "u section      
#ajb7;b74  7#b7 ,crit]ia ,! guidel9es & 
recomm5dations requir$ "u p>agraph 7#a7 
%all address1 at a m9imum1 ! foll[+     
crit]ia1 :]e applicable3  7,a7 ,fiscal  
/ability & op]ational effici5cy4  7,b7  
,r$uction 9 deficits & debt4  7,c7      
,accuracy 9 e/imat+ rev5ues &           
exp5ditures4  7,d7 ,collection ( taxes  
due4  7,e7 ,managem5t ( ,f$]al grant    
monies4  7,f7 ,quality ( f9ancial       
controls1 /atem5ts1 & report+4  7,g7    
,use ( in=mation te*nology4  7,h7       
,regulations & lic5s+ requirem5ts       
affect+ bus9ess e/abli%m5t1 expansion1 &
 op]ation4  7#c7 ,revisions ,! ,secret>y
 may revise su* guidel9es &             
recomm5dations z ! ,secret>y det]m9es   
appropriate4  7#d7 ,transmission &      
public notice ( guidel9es &             
recomm5dations ,! ,secret>y %all1 )9 #aj

 days ( e/abli%+ or revis+ guidel9es or 
recomm5dations "u ?is subsection--  7,a7
 transmit su* guidel9es & recomm5dations
 to ! ,gov]nor ( ,pu]to ,rico & !       
,congress2  7,b7 publi% su* guidel9es & 
recomm5dations 9 ! ,f$]al ,regi/]2 &    
7,c7 make su* guidel9es & recomm5dations
 available to ! public on ! website ( ! 
,dep>tm5t ( ! ,treasury4  7b7 ,f9ancial 
improvem5t det]m9ation  7#a7            
,det]m9ation ,! ,secret>y %all1 =       
purposes ( section #ajb7;b77#b71 det]m9e
 :e!r ! gov]nm5t ( ,pu]to ,rico &1 if   
applicable1 any in/rum5tality !re(1 has 
demon/rat$ mean+ful improvem5t 9 !      
managem5t ( its f9ances4  7#b7 ,basis = 
det]m9ation ,9 mak+ a det]m9ation "u    
p>agraph 7#a71 ! ,secret>y %all take    
into acc\nt ! guidel9es & recomm5dations
 e/abli%$ "u subsection 7a7 & su* o!r   
crit]ia z ! ,secret>y det]m9es          
appropriate4  7#c7 ,notification ,if1 "u
 p>agraph 7#a71 ! ,secret>y det]m9es t !
 gov]nm5t ( ,pu]to ,rico &1 if          
applicable1 any in/rum5tality !re(1 has 

n demon/rat$ mean+ful improvem5t 9 !    
managem5t ( its f9ances1 ! ,secret>y    
%all--  7,a7 notify ! ,gov]nor ( ,pu]to 
,rico & ! ,congress1 9 writ+1 ( !       
,secret>y's decision & ! basis = su*    
decision2  7,b7 publi% a notice ( su*   
det]m9ation 9 ! ,f$]al ,regi/]2  7,c7   
make su* notice available to ! public on
 ! website ( ! ,dep>tm5t ( ! ,treasury2 
7,d7 make recomm5dations to ! ,gov]nor (
 ,pu]to ,rico on specific ways !        
gov]nm5t ( ,pu]to ,rico &1 if           
applicable1 any in/rum5tality !re(1 c   
demon/rate mean+ful improvem5t2 &  7,e7 
if ! ,secret>y det]m9es x appropriate1  
make recomm5dations to-- 7i7 ! ,congress
 ab\t specific legislation t c be enact$
 to improve ! f9ances1 f9ancial         
/ability1 & f9ancial managem5t practices
 ( ! gov]nm5t ( ,pu]to ,rico & t w\ld   
help ! gov]nm5t ( ,pu]to ,rico or any   
in/rum5tality !re( demon/rate mean+ful  
improvem5t & implem5t ! recomm5dations 9
 ! areas id5tifi$ by ! ,secret>y "u     
subsection 7a77#a77;,b72 &  7ii7 ! heads

 ( ,f$]al dep>tm5ts & ag5cies o!r ?an ! 
,dep>tm5t ( ! ,treasury ab\t specific   
adm9i/rative actions t c\ld be tak5 to  
improve ! f9ances1 f9ancial /ability1 & 
f9ancial managem5t practices ( !        
gov]nm5t ( ,pu]to ,rico & t w\ld help ! 
gov]nm5t ( ,pu]to ,rico or any          
in/rum5tality !re( demon/rate mean+ful  
improvem5t & implem5t ! recomm5dations 9
 ! areas id5tifi$ by ! ,secret>y "u     
subsection 7a77#a77;,b74  #ajd4 ,public 
notice ,^u mak+ any gu>antee "u ?is     
,act1 ! ,secret>y %all publi% notice (  
su* action1 along ) ! results ( !       
det]m9ation made "u section #ajc7;b71 9 
! ,f$]al ,regi/] & make su* in=mation   
available to ! public on ! website ( !  
,dep>tm5t ( ! ,treasury4  #aje4 ,loan   
gu>antee fund+ ,!re are appropriat$ to !
 ,secret>y su* sums z may be necess>y = 
! co/1 z def9$ 9 section #ejb ( !       
,congressional ,budget ,act ( #aigd1 (  
bond gu>antees made "u ?is title4 ,!    
,secret>y may make su* bond gu>antees   
not)/&+ subsections 7b7 & 7d7 ( section 

#ejd ( ! ,f$]al ,cr$it ,re=m ,act (     
#aiij 7#b ,u4,s4,c4 #ffa;c74  ,,ii      
,te*nical assi/ance = ,pu]to ,rico      
#bja4 ,te*nical assi/ance ,! ,secret>y  
is au?oriz$ to provide advice & te*nical
 assi/ance to ! gov]nm5t ( ,pu]to ,rico 
& in/rum5talities !re( ab\t ways & means
 to demon/rate mean+ful improvem5t 9    
manag+ its f9ances 7z describ$ "u       
section #ajc74  ,,iii ,pur*ase & sale ( 
,pu]to ,rico bonds  #cja4 ,am5dm5t to ! 
,f$]al ,res]ve ,act ,section #ad7;b77#a7
 ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 
#cee7a77 is am5d$ by ins]t+ aft]        
cont95tal ,unit$ ,/ates ! foll[+3 or    
,pu]to ,rico4