,,ii #aadth ,,congress #b;d ,session ,s4 #bfgf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #ad1 #bjaf,mr4 ,menendez 7for himself1 ,mr4 ,schumer1 ,mr4 ,brown1 ,ms4 ,cantwell1 ,mr4 ,blumenthal1 ,ms4 ,warren1 and ,mr4 ,booker7 introduced the following bill2 which was read twice and referred to the ,committee on ,energy and ,natural ,resources ,a ,,bill ,to provide for the adjustment of the debts of the ,commonwealth of ,puerto ,rico1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,puerto ,rico ,stability ,act of #bjaf4 #b4 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title4 ,sec4 #b4 ,table of contents4 ,,title ,i--,technical assistance and fiscal reform ,subtitle ,a--,technical assistance ,sec4 #aja4 ,definitions4 ,sec4 #ajb4 ,improving accounting and disclosure practices4 ,sec4 #ajc4 ,purchases by territory government4 ,subtitle ,b--,fiscal stability and reform boards and chief financial officers ,sec4 #aaa4 ,establishment of ,fiscal ,stability and ,reform ,board4 ,sec4 #aab4 ,establishment of ,chief ,financial ,officer4 ,sec4 #aac4 ,development and approval of fiscal plans4 ,sec4 #aad4 ,severability4 ,,title ,,ii--,adjustments of debts of a territory or its municipalities ,subtitle ,a--,general provisions ,sec4 #bja4 ,definitions4 ,sec4 #bjb4 ,who may be a debtor4 ,sec4 #bjc4 ,reservation of territorial power to control municipalities4 ,sec4 #bjd4 ,limitation on jurisdiction and powers of court4 ,subtitle ,b--,initial stay on litigation ,sec4 #baa4 ,definitions4 ,sec4 #bab4 ,effective date4 ,sec4 #bac4 ,automatic stay4 ,subtitle ,c--,adjudication and judicial review ,sec4 #bba4 ,petition and proceedings relating to petition4 ,sec4 #bbb4 ,jurisdiction4 ,sec4 #bbc4 ,venue4 ,sec4 #bbd4 ,selection of presiding judge4 ,sec4 #bbe4 ,appellate review4 ,sec4 #bbf4 ,applicable rules of procedure4 ,sec4 #bbg4 ,severability4 ,subtitle ,d--,the plan ,sec4 #bca4 ,filing of plan of adjustment4 ,sec4 #bcb4 ,confirmation4 ,subtitle ,e--,additional provisions ,sec4 #bda4 ,compensation of professionals4 ,sec4 #bdb4 ,interim compensation4 ,sec4 #bdc4 ,applicability of other sections4 ,,title ,,iii--,puerto ,rico chapter #i uniformity ,sec4 #cja4 ,short title4 ,sec4 #cjb4 ,amendment4 ,sec4 #cjc4 ,effective date2 application of amendment4 ,sec4 #cjd4 ,severability4 ,i ,technical assistance and fiscal reform ,a ,technical assistance #aja4 ,definitions ,in this title3 7#a7 ,board ,the term ,board means a ,fiscal ,stability and ,reform ,board established in accordance with section #aaa4 7#b7 ,chief ,financial ,officer ,the term ,chief ,financial ,officer means a ,chief ,financial ,officer established in accordance with section #aab4 7#c7 ,compliant budget ,the term compliant budget means a budget that is prepared in accordance with-- 7,a7 modified accrual accounting standards2 and 7,b7 the applicable ,fiscal ,plan4 7#d7 ,covered territorial instrumentality ,the term covered territorial instrumentality means a territorial instrumentality designated by the ,board pursuant to section #aaa7;b7 to be subject to the requirements of subtitle ,b4 7#e7 ,covered territory ,the term covered territory means a territory for which a ,board has been established under section #aaa4 7#f7 ,fiscal plan ,the term ,fiscal ,plan means a fiscal plan for a covered territory submitted and approved in accordance with section #aac4 7#g7 ,governor ,the term ,governor means the chief executive of a territory4 7#h7 ,legislature 7,a7 ,in general ,the term legislature means the legislative body responsible for enacting the laws of a territory4 7,b7 ,exclusion ,the term legislature does not include ,congress4 7#i7 ,modified accrual accounting standards ,the term modified accrual accounting standards means accounting standards issued by the ,governmental ,accounting ,standards ,board that recognize-- 7,a7 revenues as they become available and measured2 and 7,b7 expenditures as liabilities are incurred4 7#aj7 ,office ,the term ,office means an ,office of the ,chief ,financial ,officer established in accordance with section #aab4 7#aa7 ,territorial government ,the term territorial government means the government of a covered territory1 including each territorial instrumentality of the government of the covered territory4 7#ab7 ,territorial instrumentality 7,a7 ,in general ,the term territorial instrumentality means a political subdivision1 public agency1 instrumentality1 or public corporation of a territory4 7,b7 ,exclusion ,the term territorial instrumentality does not include a ,board4 7#ac7 ,territory ,the term territory means-- 7,a7 the ,commonwealth of ,puerto ,rico2 7,b7 ,guam2 7,c7 ,american ,samoa2 7,d7 the ,commonwealth of the ,northern ,mariana ,islands2 or 7,e7 the ,united ,states ,virgin ,islands4 #ajb4 ,improving accounting and disclosure practices 7a7 ,in general ,on request of the applicable ,governor1 legislature1 or ,board 7if any71 the ,secretary of the ,treasury 7referred to in this section as the ,secretary7 may provide technical assistance to a territory that the ,secretary determines to be eligible for technical assistance relating to fiscal and financial practices4 7b7 ,inclusions ,in providing technical assistance under subsection 7a71 the ,secretary may1 in association with any ,federal department or agency or the ,federal ,reserve ,system1 including any ,federal ,reserve ,bank1 provide assistance relating to-- 7#a7 information technology upgrades2 7#b7 improving economic forecasting1 including multiyear fiscal forecasting capabilities2 7#c7 budgeting1 tax collection1 cash management1 and spending controls2 7#d7 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 consistent1 timely financial reporting and visibility into expenses2 7#e7 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 mainland2 and 7#f7 such other matters as the ,secretary1 in consultation with the territory1 determines to be appropriate4 7c7 ,authorization of appropriations ,there are authorized to be appropriated such sums as are necessary to carry out this section4 #ajc4 ,purchases by territory government ,section #cjb of the ,omnibus ,insular ,areas ,act of #aiib 7#dh ,u4,s4,c4 #adfi;e7 is amended to read as follows3 #cjb4 ,insular government purchases ,the governments of the ,commonwealth of ,puerto ,rico1 ,guam1 ,american ,samoa1 the ,commonwealth of the ,northern ,mariana ,islands1 and the ,united ,states ,virgin ,islands are authorized to make purchases through the ,general ,services ,administration4 4 ,b ,fiscal stability and reform boards and chief financial officers #aaa4 ,establishment of ,fiscal ,stability and ,reform ,board 7a7 ,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 subtitle1 a ,board is established for the territory4 7b7 ,board oversight of territorial instrumentalities 7#a7 ,designation 7,a7 ,in general ,a ,board1 at such time as the ,board determines to be appropriate1 may designate a territorial instrumentality as a covered territorial instrumentality that is subject to the requirements of this subtitle4 7,b7 ,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 necessary4 7,c7 ,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 #aac7;c7 for each covered territorial instrumentality4 7#b7 ,exclusion 7,a7 ,in general ,a ,board1 at such time as the ,board determines to be appropriate1 may exclude any territorial instrumentality of the covered territory from the requirements of this subtitle4 7,b7 ,treatment ,a territorial instrumentality excluded pursuant to this paragraph shall not be considered to be a covered territorial instrumentality4 7c7 ,exemption from liability for claims ,a ,board1 and each member of the ,board1 shall not be liable for any obligation of1 or claim against1 the applicable covered territory resulting from any action of the ,board to carry out this subtitle4 7d7 ,membership 7#a7 ,in general ,a ,board shall consist of #i members who meet the qualifications described in paragraph 7#f71 and of whom3 7,a7 #b members shall be appointed by the ,president in accordance with the requirements described in paragraph 7#e74 7,b7 #b members shall be appointed by the ,governor of the applicable covered territory4 7,c7 #a member shall be appointed by the chief justice of the highest appellate court of the applicable covered territory4 7,d7 #d members shall be appointed by the legislature of the applicable covered territory as follows3 7i7 ,if the legislature has #b chambers-- 7,i7 #a member shall be appointed by the political party holding the most seats in the lower chamber of the legislature2 7,,ii7 #a member shall be appointed by the political party holding the second-most seats in the lower chamber of the legislature2 7,,iii7 #a member shall be appointed by the political party holding the most seats in the upper chamber of the legislature2 and 7,,iv7 #a member shall be appointed by the political party holding the second-most seats in the upper chamber of the legislature4 7ii7 ,if the legislature has #a chamber-- 7,i7 #b members shall be appointed by the political party holding the most seats in the legislature2 and 7,,ii7 #b members shall be appointed by the political party holding the second-most seats in the legislature4 7#b7 ,chairperson ,the member appointed under paragraph 7#a77;,c7 shall serve as the chairperson of the ,board4 7#c7 ,period of appointment 7,a7 ,in general ,except for the member appointed under paragraph 7#a77;,c7 and for the initial terms of members1 each member of the ,board shall be-- 7i7 appointed for a term of #d years2 and 7ii7 eligible for reappointment4 7,b7 ,initial terms 7i7 ,for members appointed under paragraph 7#a77;,a71 as designated by the ,president at the time of appointment-- 7,i7 #a member shall be appointed for a term of #b years2 and 7,,ii7 #a member shall be appointed for a term of #d years4 7ii7 ,for members appointed under paragraph 7#a77;,b7-- 7,i7 both members shall be appointed to a term to terminate #f months after the next gubernatorial election2 and 7,,ii7 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 #ab months of the next gubernatorial election1 both members shall be appointed to a term of #b years4 7iii7 ,for members appointed under paragraph 7#a77;,c71 the member shall remain appointed for the life of the ,board4 7iv7 ,for members appointed under paragraph 7#a77;,d71 as designated by the appointing entity at the time of appointment-- 7,i7 if the legislature has #b chambers-- 7aa7 #a member shall be appointed by the political party holding the most seats in the lower chamber of the legislature to a term to terminate #f months after the next legislative election of the applicable territory2 7bb7 #a 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 #f months after the next legislative election of the applicable territory2 7cc7 #a member shall be appointed by the political party holding the most seats in the upper chamber of the legislature to a term to terminate #cj months after the next legislative election of the applicable territory2 and 7dd7 #a 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 #cj months after the next legislative election of the applicable territory2 and 7,,ii7 if the legislature has #a chamber-- 7aa7 #a member shall be appointed by the political party holding the most seats in the legislature to a term to terminate #f months after the next legislative election of the applicable territory2 7bb7 #a member shall be appointed by the political party holding the second-most seats in the legislature to a term to terminate #f months after the next legislative election of the applicable territory2 7cc7 #a member shall be appointed by the political party holding the most seats in the legislature to a term to terminate #cj months after the next legislative election of the applicable territory2 and 7dd7 #a member shall be appointed by the political party holding the second-most seats in the legislature to a term to terminate #cj months after the next legislative election of the applicable territory4 7#d7 ,vacancies 7,a7 ,in general ,each member shall remain appointed as long as the applicable qualifications of appointment under paragraph 7#f7 remain satisfied1 except that any member may be removed by the original appointing entity4 7,b7 ,effect ,any vacancy in the ,board-- 7i7 shall not affect the powers of the ,board2 and 7ii7 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 occurs1 subject to the approval described in paragraph 7#c74 7,c7 ,term ,a member appointed to fill a vacancy shall serve for the remainder of the term to which the member was appointed4 7#e7 ,approval of membership ,a new member appointed shall be approved by the full board1 excluding the member that the new member was appointed to replace4 7#f7 ,requirements for presidential appointments 7,a7 ,timing2 required consultation ,as soon as practicable after the date on which a territory submits to the ,president a resolution described in subsection 7a71 and after consultation with the appropriate committees of ,congress and the ,governor of the applicable covered territory1 the ,president shall appoint members to the ,board under paragraph 7#a77;,a74 7,b7 ,removal ,the ,president may remove a member appointed by the ,president only for cause4 7#g7 ,qualifications 7,a7 ,in general ,an individual meets the qualifications for membership on the ,board if the individual has knowledge and expertise relating to finance1 management1 economics1 or the organization or operation of business or government4 7,b7 ,connection to covered territory ,not less than #f members shall have knowledge and expertise relating to the history1 socioeconomic circumstances1 and heritage of the applicable covered territory4 7,c7 ,residence in covered territory ,not less than #f members shall maintain a primary residence in the applicable covered territory4 7,d7 ,special limitation on membership ,no current member of the applicable territory's legislature shall be eligible to serve on the ,board4 7#h7 ,conflicts of interest 7,a7 ,in general ,an individual appointed to serve as a member of the ,board-- 7i7 shall be subject to-- 7,i7 the ,federal conflict of interest requirements described in section #bjh of title #ah1 ,united ,states ,code1 except with respect to subsection 7b7 of that section2 and 7,,ii7 the conflict of interest disclosure requirements under title ,i of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app472 and 7ii7 shall not have any other conflict of interest relating to the duties of the ,board1 including ownership of any debt security of-- 7,i7 the applicable territorial government2 or 7,,ii7 a territorial instrumentality4 7,b7 ,definition ,for purposes of subparagraph 7,a77ii71 the term conflict of interest includes the interests of an organization in which the individual is serving as officer1 director1 trustee1 general partner or employee1 or any person or organization with whom the individual is negotiating or has any arrangement concerning prospective employment4 7,c7 #c-year restriction 7i7 ,in general ,any individual who serves as a member of the ,board shall not1 during the #c-year period beginning on the date on which membership on the ,board terminates1 knowingly make1 with the intent to influence1 any communication to or appearance before any member of the ,board or ,chief ,financial ,officer on behalf of any other person 7except the ,united ,states or a ,state or local government74 7ii7 ,penalty ,any individual who violates clause 7i7 shall be subject to the penalties described in section #baf of title #ah1 ,united ,states ,code4 7iii7 ,violations ,if a member of the ,board is determined to be in violation of the requirements described in subparagraph 7,a71 the member shall be removed from membership on the ,board and may be subject to additional actions or penalties set forth under ,federal ethics rules4 7e7 ,no compensation for service ,each member of the ,board shall-- 7#a7 serve without compensation2 and 7#b7 be allowed travel expenses1 including per diem in lieu of subsistence1 at rates authorized for employees of agencies under subchapter ,i of chapter #eg of title #e1 ,united ,states ,code1 while away from the home or regular place of business of the member in the performance of the duties of the ,board4 7f7 ,bylaws 7#a7 ,in general ,as soon as practicable after the appointment of all members to the ,board1 the ,board shall adopt bylaws1 rules1 and procedures to govern the activities of the ,board under this subtitle1 including procedures for hiring experts and consultants4 7#b7 ,treatment ,the bylaws1 rules1 and procedures adopted pursuant to this subsection shall be-- 7,a7 public documents2 and 7,b7 on adoption1 submitted by the ,board to-- 7i7 the ,president2 and 7ii7 the ,governor and legislature of the applicable covered territory4 7g7 ,staff 7#a7 ,in general ,on the approval of the chairperson1 the ,board may appoint such staff as are necessary to enable the ,board to perform the duties of the ,board4 7#b7 ,eligible individuals ,for purposes of chapter #aa of title #ah1 ,united ,states ,code1 and section #bfce of title #e1 ,code of ,federal ,regulations1 or any successor thereto1 the executive director and other staff employed by the ,board shall be considered employees of an ,executive agency 7as defined in section #aje of title #e1 ,united ,states ,code71 including a member of the staff who is-- 7,a7 a private citizen2 7,b7 an employee of the applicable territorial government2 or 7,c7 an employee of the ,federal ,government4 7#c7 ,detailees 7,a7 ,federal employees ,on request of the chairperson of the ,board1 the head of a ,federal department or agency may detail to the ,board1 on a reimbursable or nonreimbursable basis1 and in accordance with the ,intergovernmental ,personnel ,act of #aigj 7#db ,u4,s4,c4 #dgja et seq471 any of the personnel of the department or agency to assist the ,board in the performance of the duties of the ,board4 7,b7 ,territorial government employees ,on request of the chairperson of the ,board1 the head of any department or agency of the applicable territorial government may detail to the ,board1 on a reimbursable or nonreimbursable basis1 any of the personnel of the department or agency to assist the ,board in the performance of the duties of the ,board4 7#d7 ,officers 7,a7 ,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 ,board4 7,b7 ,term2 payment ,an executive director or officer appointed pursuant to subparagraph 7,a7 shall serve for such period and be paid such compensation as the ,board determines to be appropriate4 7h7 ,funding 7#a7 ,in general ,the ,board-- 7,a7 may use funds provided by the applicable territorial government to ensure sufficient funds are made available to cover all expenses of the ,board2 and 7,b7 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 government4 7#b7 ,local funding ,a covered territory shall designate a dedicated territorial government source of funding1 not subject to subsequent legislative appropriation1 sufficient to support the annual costs of the ,board1 as determined by the ,board1 to carry out this subtitle4 7i7 ,powers 7#a7 ,hearings ,the ,board may1 for the purpose of performing the duties of the ,board-- 7,a7 hold such hearings1 meet and act at such times and places1 take such testimony1 receive such evidence1 and administer such oaths as the ,board considers to be appropriate2 and 7,b7 require1 by subpoena or otherwise1 the attendance and testimony of such witnesses and the production of such books1 records1 correspondence1 memoranda1 papers1 documents1 tapes1 and materials as the ,board considers to be appropriate4 7#b7 ,issuance and enforcement of subpoenas 7,a7 ,issuance ,a subpoena issued under paragraph 7#a77;,b7 shall-- 7i7 bear the signature of the chairperson of the ,board2 and 7ii7 be served by any person or class of persons designated by the chairperson to serve a subpoena under paragraph 7#a77;,b74 7,b7 ,enforcement ,in the case of contumacy or failure to obey a subpoena issued under paragraph 7#a77;,b71 the ,united ,states district court for the district in which the subpoenaed person resides1 is served1 or may be found may issue an order requiring the person-- 7i7 to appear at any designated place to testify2 or 7ii7 to produce documentary or other evidence4 7,c7 ,noncompliance ,any failure to obey the order of a court under this paragraph may be punished by the court as a contempt of court4 7#c7 ,entrance into contracts ,the ,board1 or any of the staff of the ,board on behalf of the ,board1 may enter into such contracts as the ,board considers appropriate to carry out the duties of the ,board4 7j7 ,duties 7#a7 ,monitoring and recommendations 7,a7 ,in general ,based on information provided in a monthly report submitted under section #aab7;f77#a77;,a71 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 balanced4 7#b7 ,improvements to operational efficiency 7,a7 ,in general ,the ,board shall work with the applicable territorial government to improve the operational efficiency of the applicable territorial government1 including the efforts of the applicable territorial government-- 7i7 to strengthen financial recordkeeping and reporting2 7ii7 to control the number and cost of government contracts2 7iii7 to collect and enforce the collection of taxes2 7iv7 to promote economic growth2 7v7 to improve ,federal grant management2 and 7vi7 to increase the effective use of information technology4 7,b7 ,report ,within a reasonable period of time1 the ,board shall submit to the applicable territorial government a report describing recommendations to improve the operational efficiency of the applicable territorial government1 including efforts described in subparagraph 7,a74 7#c7 ,review of budgets2 quarterly reports 7,a7 ,budget proposed by ,governor 7i7 ,submission to board ,the ,governor of the applicable covered territory shall submit to the ,board for review a proposed budget for each fiscal year1 in consultation with the ,chief ,financial ,officer and based on the applicable forecast of revenues submitted by the ,chief ,financial ,officer1 by not later than the earlier of-- 7,i7 the date that is #abj days before the first day of the fiscal year covered by the proposed budget2 and 7,,ii7 the date that is #fj 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 year4 7ii7 ,determination of compliant budget ,not later than the date that is #ae days after the date on which a ,board receives a proposed budget under clause 7i71 the ,board shall-- 7,i7 determine whether the proposed budget is a compliant budget2 and 7,,ii7 7aa7 if the proposed budget is a compliant budget-- 7,,aa7 approve the compliant budget2 and 7,,bb7 submit the compliant budget to the legislature of the applicable covered territory2 or 7bb7 if the proposed budget is not a compliant budget1 provide to the ,governor of the applicable covered territory-- 7,,aa7 a notice of violation that includes a description of any corrective action suggested by the ,board2 and 7,,bb7 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 #ae days after the date on which the notice of violation under subitem 7,,aa7 is provided4 7iii7 ,revised budgets ,not later than the date that is #g days after the date on which the ,board receives a revised budget under clause 7ii77,,ii77bb77,,bb71 the ,board shall-- 7,i7 determine whether the revised budget is a compliant budget in consultation with the ,chief ,financial ,officer2 and 7,,ii7 7aa7 if the revised budget is a compliant budget-- 7,,aa7 approve the compliant budget2 and 7,,bb7 submit the compliant budget to the legislature of the applicable covered territory2 or 7bb7 if the revised budget is not a compliant budget-- 7,,aa7 issue a notice of noncompliance2 7,,bb7 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 budget2 7,,cc7 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 budget2 and 7,,dd7 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 year4 7,b7 ,budget approval by legislature 7i7 ,in general ,the legislature of the applicable covered territory shall submit to the ,board the budget adopted by the legislature not later than-- 7,i7 the date that is #cj days before the first day of each applicable fiscal year2 or 7,,ii7 the date previously approved in writing by the ,board not to exceed #fj days after the first day of the applicable fiscal year1 if a date was approved in writing4 7ii7 ,determination by board ,not later than the date that is #g days after the date on which the ,board receives an adopted budget submitted under clause 7i71 the ,board shall-- 7,i7 determine whether the adopted budget is a compliant budget in consultation with the ,chief ,financial ,officer2 and 7,,ii7 7aa7 if the adopted budget is a compliant budget1 issue a compliance certification for the compliant budget2 or 7bb7 if the budget is not a compliant budget-- 7,,aa7 issue a certificate of noncompliance2 7,,bb7 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 ,plan2 7,,cc7 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 ,plan2 and 7,,dd7 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 year4 7,c7 ,quarterly reports ,on receipt of a quarterly report from the ,chief ,financial ,officer under section #aab7;f77#a77;,b71 the ,board shall-- 7i7 conduct a review to determine whether the actual quarterly revenues and expenses for the applicable territorial government are in compliance with the applicable approved budget2 and 7ii7 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 7i71 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 balanced4 7#d7 ,issuance of debt ,no territorial government may1 without providing prior written and public notice to the ,board1 issue debt or guarantee1 exchange1 modify1 repurchase1 redeem1 or enter into a similar transaction with respect to the debt of the territorial government4 7#e7 ,authority to review discretionary tax waivers 7,a7 ,in general ,not later than the date that is #ahj days after the date of the establishment of a ,board under subsection 7a71 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 party1 including each agreement pursuant to which the applicable entity of the territorial government waived1 changed the due date of1 or changed the amount of taxes due4 7,b7 ,new tax waivers ,effective on the date on which a ,board is established under subsection 7a71 no new tax waiver agreement may be executed by the applicable territorial government without prior approval of the ,board4 7k7 ,termination of board ,a ,board shall terminate on certification by the ,board that-- 7#a7 the ,board has been in operation for not less than #c years and the applicable territorial government has adequate access1 on an unsecured basis1 to short-term and long-term credit markets at reasonable interest rates to meet the borrowing needs of the territorial government using a compliant budget2 or 7#b7 for not less than #c consecutive fiscal years prior to the certification1 the expenditures made by the applicable territorial government for each fiscal year did not exceed the revenues of the territorial government during that fiscal year1 using a compliant budget4 #aab4 ,establishment of ,chief ,financial ,officer 7a7 ,establishment of ,office 7#a7 ,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 subtitle1 an ,office of the ,chief ,financial ,officer is established for the territory1 which shall be headed by the ,chief ,financial ,officer of the territory4 7#b7 ,authority to request ,effective with the appointment of the first ,chief ,financial ,officer under subsection 7d71 the ,chief ,financial ,officer may request other offices be consolidated within the office1 subject to the approval of the applicable territory's legislature1 with the function and personnel of the offices transferred to the office4 7#c7 ,retention of authority ,notwithstanding paragraph 7#b71 the applicable territory shall retain its authority to appoint and remove personnel and agency heads of consolidated offices4 7#d7 ,conflicts of interest 7,a7 ,in general ,an individual appointed to serve as a ,chief ,financial ,officer-- 7i7 shall be subject to-- 7,i7 the ,federal conflict of interest requirements described in section #bjh of title #ah1 ,united ,states ,code1 except with respect to subsection 7b7 of that section2 and 7,,ii7 the conflict of interest disclosure requirements under title ,i of the ,ethics in ,government ,act of #aigh 7#e ,u4,s4,c4 ,app472 and 7ii7 shall not have any other conflict of interest relating to the duties of the ,chief ,financial ,officer1 including ownership of any debt security of-- 7,i7 the applicable territorial government2 or 7,,ii7 a territorial instrumentality4 7,b7 ,definition ,for purposes of subparagraph 7,a77ii71 the term conflict of interest includes the interests of an organization in which the individual is serving as officer1 director1 trustee1 general partner or employee1 or any person or organization with whom the individual is negotiating or has any arrangement concerning prospective employment4 7,c7 #c-year restriction 7i7 ,in general ,any individual who serves as ,chief ,financial ,officer shall not1 during the #c-year period beginning on the date on which his or her tenure as ,chief ,financial ,officer terminates1 knowingly make1 with the intent to influence1 any communication to or appearance before any member of the ,board or ,chief ,financial ,officer on behalf of any other person 7except the ,united ,states or a ,state or local government74 7ii7 ,penalty ,any individual who violates clause 7i7 shall be subject to the penalties described in section #baf of title #ah1 ,united ,states ,code4 7iii7 ,violations ,if a ,chief ,financial ,officer is determined to be in violation of the requirements described in this subparagraph1 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 rules4 7b7 ,staff 7#a7 ,in general ,the ,chief ,financial ,officer may appoint such staff as are necessary to enable the ,office to perform the duties of the ,office4 7#b7 ,eligible individuals ,for purposes of chapter #aa of title #ah1 ,united ,states ,code1 and section #bfce of title #e1 ,code of ,federal ,regulations1 or any successor thereto1 the executive director and other staff employed by the office shall be considered employees of an ,executive agency 7as defined in section #aje of title #e1 ,united ,states ,code71 including a member of the staff who is-- 7,a7 a private citizen2 7,b7 an employee of the applicable territorial government2 or 7,c7 an employee of the ,federal ,government4 7#c7 ,detailees 7,a7 ,federal employees ,on request of the ,chief ,financial ,officer1 the head of a ,federal department or agency may detail to the ,office1 on a reimbursable or nonreimbursable basis1 and in accordance with the ,intergovernmental ,personnel ,act of #aigj 7#db ,u4,s4,c4 #dgja et seq471 any of the personnel of the department or agency to assist the ,office in the performance of the duties of the ,office4 7,b7 ,territorial government employees ,on request of the ,chief ,financial ,officer1 the head of any department or agency of the applicable territorial government may detail to the ,office1 on a reimbursable or nonreimbursable basis1 any of the personnel of the department or agency to assist the ,office in the performance of the duties of the ,office4 7c7 ,funding 7#a7 ,in general ,the ,chief ,financial ,officer-- 7,a7 may use funds provided by the applicable territorial government to ensure sufficient funds are made available to cover all expenses of the ,office2 and 7,b7 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 government4 7#b7 ,local funding ,a covered territory shall designate a dedicated territorial government source of funding1 not subject to subsequent legislative appropriation1 sufficient to support the annual costs of the ,office1 as determined by the ,chief ,financial ,officer1 to carry out this subtitle4 7d7 ,appointment 7#a7 ,in general ,the ,chief ,financial ,officer shall be appointed by the applicable territory's ,governor as follows3 7,a7 ,prior to the appointment of the ,chief ,financial ,officer1 the ,board may submit recommendations for the appointment to the applicable territory's ,governor4 7,b7 ,in consultation with the ,board and the applicable territory's legislature1 the applicable territory's ,governor shall nominate an individual for appointment and notify the applicable territory's legislature of the nomination4 7,c7 ,after the expiration of the #g-;day period that begins on the date the applicable territory's ,governor notifies the legislature of the nomination under subparagraph 7,b71 the applicable territory's ,governor shall notify the ,board of the nomination4 7,d7 ,the nomination shall be effective subject to approval by a majority vote of the ,board4 7#b7 ,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 ,board4 7#c7 ,salary ,the ,chief ,financial ,officer shall be paid at an annual rate determined by the ,board as the ,board determines to be appropriate4 7e7 ,powers 7#a7 ,issuance and enforcement of subpoenas 7,a7 ,purpose ,the ,chief ,financial ,officer may1 for the purpose of performing the duties of the office1 require1 by subpoena or otherwise1 the attendance and testimony of such witnesses and the production of such books1 records1 correspondence1 memoranda1 papers1 documents1 tapes1 and materials as the ,chief ,financial ,officer considers to be appropriate4 7,b7 ,issuance ,a subpoena issued under paragraph 7#a77;,b7 shall-- 7i7 bear the signature of the ,chief ,financial ,officer2 and 7ii7 be served by any person or class of persons designated by the ,chief ,financial ,officer to serve a subpoena under paragraph 7#a77;,b74 7,c7 ,enforcement ,in the case of contumacy or failure to obey a subpoena issued under paragraph 7#a77;,b71 the ,united ,states district court for the district in which the subpoenaed person resides1 is served1 or may be found may issue an order requiring the person-- 7i7 to appear at any designated place to testify2 or 7ii7 to produce documentary or other evidence4 7,d7 ,noncompliance ,any failure to obey the order of a court under this paragraph may be punished by the court as a contempt of court4 7#b7 ,entrance into contracts ,the ,chief ,financial ,officer1 or any of the staff of the office on behalf of the ,chief ,financial ,officer1 may enter into such contracts as the ,chief ,financial ,officer considers appropriate to carry out the duties of the office4 7f7 ,functions ,in addition to any other duties necessary and proper to fulfill the purposes of the ,office1 the ,chief ,financial ,officer shall have the following duties3 7#a7 ,monthly and quarterly reports ,the ,chief ,financial ,officer1 in consultation with the applicable territorial government1 shall submit to the ,board3 7,a7 ,a report not later than the date that is #g days after the last day of each month to provide-- 7i7 an accounting of the cash balance of the applicable territorial government2 and 7ii7 a description of the amount of actual expenditures and revenues of the applicable territorial government1 as compared to the amounts budgeted1 for the applicable fiscal year4 7,b7 ,not later than the date that is #ae days after the last day of each quarter of a fiscal year1 the ,chief ,financial ,officer in consultation with the ,governor of the applicable covered territory shall submit to the ,board1 in such form as the ,board may require1 a report describing-- 7i7 the actual cash revenues1 cash expenditures1 and cash flows of the territorial government for the preceding quarter2 as compared to 7ii7 the actual cash revenues1 cash expenditures1 and cash flows contained in the approved budget for the applicable quarter4 7,c7 ,a report under subparagraph 7,b7 shall include-- 7i7 a description of any accrued revenues and expenditures during the applicable quarter1 as compared to the accrued revenues and expenditures contained in the approved budget for the quarter2 and 7ii7 a balance sheet1 if the ,board requires a balance sheet4 7#b7 ,revenue forecasting ,not later than the date that is #ge 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 year1 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 budget4 7,a7 ,requirements ,a forecast under paragraph 7#b7 shall be-- 7i7 based on applicable law2 and 7ii7 prepared in accordance with the applicable ,fiscal ,plan4 7#c7 ,financial and accounting information ,the ,chief ,financial ,officer shall ensure the following3 7,a7 ,all financial information presented by the applicable territory is presented in a manner1 and is otherwise consistent with any requirements promulgated by the ,board4 7,b7 ,appropriate procedures are implemented and institute such programs1 systems1 and personnel policies within the ,officer's authority1 to ensure that the applicable territory's budget1 accounting and personnel control systems and structures are synchronized for budgeting and control purposes on a continuing basis4 7,c7 ,appropriate forms of receipts1 vouchers1 bills1 and claims to be used by all agencies1 offices1 and instrumentalities of the applicable territorial government4 7#d7 ,accounting management ,the ,chief ,financial ,officer shall3 7,a7 ,supervise the applicable territory's financial transactions to ensure adequate control of revenues and resources1 and to ensure that appropriations are not exceeded4 7,b7 ,maintain systems of accounting and internal control designed to provide-- 7i7 full disclosure of the financial impact of the activities of the applicable territorial government2 7ii7 adequate financial information needed by the applicable territorial government for management purposes2 7iii7 effective control over1 and accountability for1 all funds1 property1 and other assets of the applicable territorial government2 and 7iv7 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 government4 7,c7 ,maintain accounting of all public funds belonging to or under the control of the applicable territorial government 7or any department or agency of the applicable territorial government74 7,d7 ,maintain accounting of all investment and invested funds of the applicable territorial government or in possession of the applicable territorial government in a fiduciary capacity4 7,e7 ,submit to the applicable territorial government a financial statement of the applicable territorial government1 containing such details and at such times as the applicable territorial government may specify4 7#e7 ,certifying contracts ,all contracts 7whether directly or through delegation7 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 year4 7#f7 ,auditing ,the ,chief ,financial ,officer shall perform internal audits of accounts and operations and records of the applicable territorial government1 including the examination of any accounts or records of financial transactions1 giving due consideration to the effectiveness of accounting systems1 internal control1 and related administrative practices of the departments and agencies of the applicable territorial government4 #aac4 ,development and approval of fiscal plans 7a7 ,in general ,not later than the date that is #fj days before the date on which the ,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 year1 the ,governor1 in consultation with the ,chief ,financial ,officer1 shall develop and submit to the ,board and applicable territorial government a ,fiscal ,plan for the applicable territorial government in accordance with this section4 7b7 ,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 7a7 within #ij 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 subtitle1 or not later than the date that is #fj 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 year1 whichever comes chronologically first4 7c7 ,requirements 7#a7 ,in general ,a ,fiscal ,plan shall1 to the maximum extent practicable1 with respect to the applicable territorial government-- 7,a7 provide for estimates of revenues and expenditures in accordance with modified accrual accounting standards and based on-- 7i7 applicable laws2 or 7ii7 specific laws that require enactment in order to reasonably achieve the projections of the ,fiscal ,plan2 7,b7 ensure the funding of essential public services2 7,c7 provide full funding to cover all existing public pension obligations2 7,d7 provide for the elimination of budget gaps in financing2 7,e7 provide for a reduction in the debt burden to a level that is sustainable2 7,f7 improve fiscal governance2 7,g7 enable the achievement of fiscal targets2 7,h7 create independent forecasts of revenue for the period covered by the ,fiscal ,plan2 and 7,i7 not impede investments to promote sustained economic growth4 7#b7 ,term ,a ,fiscal ,plan shall be in effect for a period of not less than #e years4 7#c7 ,transparency ,a ,fiscal ,plan shall be made publicly available no less than #ae days after final approval as specified within subsection 7d74 7d7 ,approval by board 7#a7 ,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 subsection4 7#b7 ,approval ,not later than the date that is #ae days after the date on which the ,governor submits a ,fiscal ,plan to the ,board under subsection 7a71 the ,board shall-- 7,a7 certify the ,fiscal ,plan2 or 7,b7 fail to certify the ,fiscal ,plan and provide to the ,governor recommendations for revisions to the ,fiscal ,plan4 7#c7 ,revised fiscal plan 7,a7 ,in general ,not later than the date that is #ae days after the date on which the ,board submits recommendations to the ,governor under paragraph 7#b77;,b71 the ,governor shall submit to the ,board a revised ,fiscal ,plan4 7,b7 ,approval2 disapproval ,not later than the date that is #g days after the date on which the ,governor submits to the ,board a revised ,fiscal ,plan under subparagraph 7,a71 the ,board shall-- 7i7 certify the revised ,fiscal ,plan2 or 7ii7 disapprove the revised ,fiscal ,plan4 7#d7 ,development by board 7,a7 ,in general 7i7 ,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 7#c77;,a71 the ,board shall develop and submit to the ,governor a final revised ,fiscal ,plan not later than the date that is #bb days after the date on which recommendations are provided to the ,governor under paragraph 7#b77;,b74 7ii7 ,disapproval by ,board ,if the ,board disapproves a revised ,fiscal ,plan under paragraph 7#c77;,b77ii71 the ,board shall develop and submit to the ,governor a final revised ,fiscal ,plan not later than the date that is #g days after the date of disapproval4 #aad4 ,severability ,if any provision of this subtitle or the application of such provision to any person or circumstance is held to be unconstitutional1 the remainder of this subtitle1 and the application of the provision to any other person or circumstance1 shall not be affected4 ,,ii ,adjustments of debts of a territory or its municipalities ,a ,general provisions #bja4 ,definitions ,in this title3 7#a7 ,affiliate ,the term affiliate means1 in addition to the definition made applicable in a case under this title by section #bdc7;a7-- 7,a7 for a ,territory1 any municipality of the ,territory2 and 7,b7 for a municipality1 the governing ,territory and any of the ,territory's other municipalities4 7#b7 ,bond ,the term ,bond means a bond1 loan1 line of credit1 note1 or other borrowing title1 in physical or dematerialized form1 of which-- 7,a7 the issuer1 borrower1 or guarantor is the municipality or ,territory as defined by paragraphs 7#e7 and 7#aa72 and 7,b7 the date of issuance or incurrence of debt precedes the date of enactment of this ,act4 7#c7 ,court ,the term court means the district court for the territory in which the debtor is located or1 for any territory in which the debtor is located that does not have a district court1 the ,united ,states ,district ,court for the ,district of ,hawaii4 7#d7 ,debtor ,the term debtor means the ,territory or municipality concerning which a case under this title has been commenced4 7#e7 ,municipality ,the term municipality-- 7,a7 includes any political subdivision1 public agency1 instrumentality or instrumentality of a ,territory2 and 7,b7 should be broadly construed to effectuate the purposes of this title4 7#f7 ,property of the estate ,the term property of the estate1 when used in section #eda of title #aa1 ,united ,states ,code1 made applicable in a case under this title by section #bdc7;a7 means property of the debtor4 7#g7 ,special revenues ,the term special revenues means receipts derived from the ownership1 operation1 or disposition of projects or systems of the debtor that are primarily used or intended to be used primarily to provide transportation1 utility1 or other services1 including the proceeds of borrowings to finance the projects or systems4 7#h7 ,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 property4 7#i7 ,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 7#b7 assessed against such real property4 7#aj7 ,state ,the term ,state when used in a section of title #aa1 ,united ,states ,code1 made applicable in a case under this title by section #bdc7;a7 means ,state or ,territory when used in reference to a the relationship of a ,state to the municipality of the ,state4 7#aa7 ,territory ,the term ,territory means the ,commonwealth of ,puerto ,rico1 ,guam1 ,american ,samoa1 the ,commonwealth of the ,northern ,mariana ,islands1 or the ,united ,states ,virgin ,islands4 7#ab7 ,trustee ,the term trustee when used in a section of title #aa1 ,united ,states ,code1 made applicable in a case under this title by section #bdc7;a7 means debtor1 except as provided in section #ibf of title #aa1 ,united ,states ,code4 #bjb4 ,who may be a debtor ,an entity may be a debtor under this title if the entity-- 7#a7 is-- 7,a7 a ,territory that has requested the establishment of a ,fiscal ,stability and ,reform ,board in accordance with section #aaa2 or 7,b7 a municipality-- 7i7 of a ,territory that has requested the establishment of a ,fiscal ,stability and ,reform ,board in accordance with section #aaa2 and 7ii7 that has been specifically authorized1 in its capacity as a municipality or by name1 to be a debtor under this title by ,territory law1 or by a governmental officer or organization empowered by ,territory law to authorize such entity to be a debtor under this title2 and 7#b7 desires to effect a plan to adjust its debts4 #bjc4 ,reservation of territorial power to control municipalities ,subject to the limitations imposed by title ,,iii1 this title does not limit or impair the power of a ,territory to control1 by legislation or otherwise1 a municipality of or in the ,territory in the exercise of the political or governmental powers of such municipality1 including expenditures for such exercise1 but-- 7#a7 a ,territory law prescribing a method of composition of indebtedness of such municipality may not bind any creditor that does not consent to such composition2 and 7#b7 a judgment entered under such a law may not bind a creditor that does not consent to such composition4 #bjd4 ,limitation on jurisdiction and powers of court ,subject to the limitations imposed by title ,,ii1 notwithstanding any power of the court1 unless the debtor consents or the plan so provides1 the court may not1 by any stay1 order1 or decree1 in the case or otherwise1 interfere with-- 7#a7 any of the political or governmental powers of the debtor2 7#b7 any of the property or revenues of the debtor2 or 7#c7 the debtor's use or enjoyment of any income-producing property4 ,b ,initial stay on litigation #baa4 ,definitions ,in this subtitle1 any term not defined under section #bja that is defined in title #aa1 ,united ,states ,code1 has the meaning given that term under title #aa1 ,united ,states ,code4 #bab4 ,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 and ,reform ,board under section #aaa1 section #bac shall take effect4 #bac4 ,automatic stay 7a7 ,except as otherwise provided in this section1 the adoption of a resolution under section #aaa operates with respect to any claim1 debt1 or cause of action related to a ,bond as a stay1 applicable to all entities 7as such term is defined in section #aja of title #aa1 ,united ,states ,code71 of-- 7#a7 the commencement or continuation1 including the issuance or employment of process1 of a judicial1 administrative1 or other action or proceeding against a ,territory or municipality1 or to recover a claim against a ,territory or municipality2 7#b7 the enforcement1 against a ,territory or municipality or against property of a ,territory or municipality1 of a judgment2 7#c7 any act to obtain possession of property of a ,territory or municipality1 or of property from a ,territory or municipality1 or to exercise control over property of a ,territory or municipality2 7#d7 any act to create1 perfect1 or enforce any lien against property of a ,territory or municipality2 7#e7 any act to create1 perfect1 or enforce against property of a ,territory or municipality any lien to the extent that such lien secures a claim2 7#f7 any act to collect1 assess1 or recover a claim against a ,territory or municipality2 and 7#g7 the setoff of any debt owing to a ,territory or municipality against any claim against a ,territory or municipality4 7b7 ,the adoption of a resolution under section #aaa does not operate as a stay under subsection 7a7 of this section of the continuation of1 including the issuance or employment of process1 a judicial1 administrative1 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 #aaa4 7c7 ,except as provided in subsection 7d71 7e71 or 7f71 a stay of an act under subsection 7a7 shall cease to have effect no later than #ab months after the date of the adoption of a resolution under section #aaa1 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 #bjb1 whichever comes chronologically first4 7d7 ,on motion of a party in interest and after notice and a hearing1 the court may grant relief from a stay under subsection 7a7-- 7#a7 for cause1 including the lack of adequate protection of a security interest in property of such party in interest2 or 7#b7 with respect to a stay of an act against property under subsection 7a71 if-- 7,a7 the debtor does not have an equity in such property2 and 7,b7 such property is not necessary for a ,territory or municipality to provide essential services4 7e7 ,thirty days after a request under subsection 7d7 of this section for relief from the stay of any act against property of a ,territory or municipality under subsection 7a7 of this section1 such stay is terminated with respect to the party in interest making such request1 unless the court1 after notice and a hearing1 orders such stay continued in effect pending the conclusion of1 or as a result of1 a final hearing and determination under subsection 7d7 of this section4 ,a hearing under this subsection may be a preliminary hearing1 or may be consolidated with the final hearing under subsection 7d7 of this section4 ,the court shall order such stay continued in effect pending the conclusion of the final hearing under subsection 7d7 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 hearing4 ,if the hearing under this subsection is a preliminary hearing1 then such final hearing shall be concluded not later than #cj days after the conclusion of such preliminary hearing1 unless the #cj-;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 circumstances4 7f7 ,upon request of a party in interest1 the court1 with or without a hearing1 shall grant such relief from the stay provided under subsection 7a7 of this section as is necessary to prevent irreparable damage to the secured interest of an entity in property1 if such interest will suffer such damage before there is an opportunity for notice and a hearing under subsection 7d7 or 7e7 of this section4 7g7 ,no order1 judgment1 or decree entered in violation of this section shall have any force or effect4 7h7 ,in any hearing under subsection 7d7 or 7e7 concerning relief from a stay-- 7#a7 the party requesting such relief has the burden of proof on the issue of the debtor's equity in property2 and 7#b7 the party opposing such relief has the burden of proof on all other issues4 ,c ,adjudication and judicial review #bba4 ,petition and proceedings relating to petition 7a7 ,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 #bjb4 7b7 ,notwithstanding section #bjb and subsection 7a71 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 7a7 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 district4 7c7 ,after any objection to the petition1 the court1 after notice and a hearing1 may dismiss the petition if-- 7#a7 the debtor did not file the petition in good faith2 or 7#b7 the petition does not meet the requirements of this title4 7d7 ,if the petition is not dismissed under subsection 7c71 the court shall order relief under this title4 7e7 ,the court may not-- 7#a7 on account of an appeal from an order for relief1 delay any proceeding under this title in the case in which the appeal is being taken2 or 7#b7 order a stay of such proceeding pending such appeal4 7f7 ,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 #cfd7;c7 or #cfd7;d7 of title #aa1 ,united ,states ,code4 7g7 ,for purposes of this title1 the ,governor may take any action necessary on behalf of the debtor to prosecute the debtor's case2 including-- 7#a7 filing a petition2 7#b7 submitting or modifying a plan of adjustment2 or 7#c7 otherwise generally submitting filings in relation to the restructuring case with the court4 7h7 ,debtors under this title may file petitions or submit or modify plans of adjustment jointly if they are affiliates4 7i7 ,except as provided in subsection 7j71 this title shall take effect on the date of the enactment of this ,act4 7j7 ,this title shall apply with respect to-- 7#a7 cases commenced under this title on or after the date of the enactment of this ,act2 and 7#b7 debts1 claims1 and liens created before1 on1 or after such date4 #bbb4 ,jurisdiction 7a7 ,the district courts shall have original and exclusive jurisdiction of a case under this title4 7b7 ,section #aeg of title #bh1 ,united ,states ,code1 shall apply to a case under this title4 #bbc4 ,venue ,venue shall be proper in-- 7#a7 with respect to a ,territory1 the district court for the ,territory or1 for any territory that does not have a district court1 in the ,united ,states ,district ,court for the ,district of ,hawaii2 and 7#b7 with respect to a municipality1 the district court for the ,territory in which the municipality is located or1 for any territory that does not have a district court1 in the ,united ,states ,district ,court for the ,district of ,hawaii4 #bbd4 ,selection of presiding judge 7a7 ,for cases in which the debtor is a ,territory1 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 case4 7b7 ,for cases in which the debtor is not a ,territory1 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 debtor1 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 case4 7c7 ,a bankruptcy judge designated under subsection 7a7 or 7b7 shall be subject to the provisions of chapter #f of title #bh1 ,united ,states ,code4 7d7 ,notwithstanding section #aef1 of title #bh1 ,united ,states ,code1 the bankruptcy judge designated under subsection 7a7 or 7b7 may appoint as many law clerks and additional judicial assistants as the judge deems necessary to assist in presiding over cases commenced under this title4 #bbe4 ,appellate review 7a7 ,except as provided in subsection 7b71 subsections 7a7 and 7d7 of section #aeh of title #bh1 ,united ,states ,code1 shall apply to a case under this title4 7b7 ,only an order confirming a plan of adjustment or dismissing a petition shall be considered final for purposes of section #aeh7;a7 of title #bh1 ,united ,states ,code4 #bbf4 ,applicable rules of procedure ,for all cases brought under this title1 the ,federal ,rules of ,bankruptcy ,procedure shall apply4 #bbg4 ,severability ,if any provision of this title or the application thereof to any person or circumstance is held invalid1 the remainder of this title1 or the application of that provision to persons or circumstances other than those as to which it is held invalid1 is not affected thereby4 ,d ,the plan #bca4 ,filing of plan of adjustment ,the debtor shall file a plan for the adjustment of the debtor's debts4 ,if such a plan is not filed with the petition1 the debtor shall file such a plan at such later time as the court fixes4 #bcb4 ,confirmation 7a7 ,a special tax payer may object to confirmation of a plan4 7b7 ,the court shall confirm the plan if-- 7#a7 the plan complies with the provisions of title #aa1 ,united ,states ,code1 made applicable in a case under this title by section #bdc7;a72 7#b7 the plan complies with the provisions of this title2 7#c7 the debtor is not prohibited by law from taking any action necessary to carry out the plan2 7#d7 except to the extent that the holder of a particular claim has agreed to a different treatment of such claim1 the plan provides that on the effective date of the plan each holder of a claim of a kind specified in section #ejg7;a77#b7 of title #aa1 ,united ,states ,code1 will receive on account of such claim cash equal to the allowed amount of such claim2 7#e7 any regulatory or electoral approval necessary under applicable nonbankruptcy law in order to carry out any provision of the plan has been obtained1 or such provision is expressly conditioned on such approval2 7#f7 the plan is in the best interests of creditors and is feasible2 7#g7 the plan is consistent with the ,fiscal ,plan submitted under title ,,ii2 7#h7 the plan ensures that accrued pension liability in the ,commonwealth ,employee ,retirement ,system and ,teacher ,retirement ,system shall be treated as senior1 first priority secured debt1 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 ,commonwealth1 provided that the maximum claim to be treated as secured by this senior1 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 senior1 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 participant2 and 7#i7 feasible and equitable the plan does not unduly impair the claims of holders of bonds that are-- 7,a7 general obligations of the ,territory to which the ,territory pledged the full faith and credit and the taxing power of the ,territory2 and 7,b7 identified in an applicable nonbankruptcy law as having a first claim on available ,territory resources4 ,e ,additional provisions #bda4 ,compensation of professionals 7a7 ,after notice to the parties in interest and the ,united ,states ,trustee and a hearing1 the court may award to a professional person employed by the debtor1 in the debtor's sole discretion1 or employed by a committee under section #aajc of title #aa1 ,united ,states ,code-- 7#a7 reasonable compensation for actual1 necessary services rendered by the professional person1 or attorney and by any paraprofessional person employed by any such person2 and 7#b7 reimbursement for actual1 necessary expenses4 7b7 ,the court may1 on its own motion or on the motion of any party in interest1 award compensation that is less than the amount of compensation that is requested4 7c7 ,in determining the amount of reasonable compensation to be awarded to a professional person1 the court shall consider the nature1 the extent1 and the value of such services1 taking into account all relevant factors1 including-- 7#a7 the time spent on such services2 7#b7 the rates charged for such services2 7#c7 whether the services were necessary to the administration of1 or beneficial at the time at which the service was rendered toward the completion of1 a case under this title2 7#d7 whether the services were performed within a reasonable amount of time commensurate with the complexity1 importance1 and nature of the problem1 issue1 or task addressed2 7#e7 with respect to a professional person1 whether the person is board certified or otherwise has demonstrated skill and experience in the restructuring field2 and 7#f7 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 #aa1 ,united ,states ,code4 7d7 ,the court shall not allow compensation for-- 7#a7 unnecessary duplication of services2 or 7#b7 services that were not-- 7,a7 reasonably likely to benefit the debtor2 or 7,b7 necessary to the administration of the case4 7e7 ,the court shall reduce the amount of compensation awarded under this section by the amount of any interim compensation awarded under section #bdb1 and1 if the amount of such interim compensation exceeds the amount of compensation awarded under this section1 may order the return of the excess to the debtor4 7f7 ,any compensation awarded for the preparation of a fee application shall be based on the level and skill reasonably required to prepare the application4 #bdb4 ,interim compensation ,a debtor's attorney1 or any professional person employed by the debtor1 in the debtor's sole discretion1 or employed by a committee under section #aajc of title #aa1 ,united ,states ,code1 may apply to the court not more than once every #abj days after an order for relief in a case under this title1 or more often if the court permits1 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 #bda4 ,after notice and a hearing1 the court may allow to such applicant such compensation or reimbursement4 #bdc4 ,applicability of other sections 7a7 ,sections #aja1 #ajb1 #ajd1 #aje1 #ajf1 #ajg1 #ajh1 #aab1 #ccc1 #cdd1 #cdg7;b71 #cdi1 #cej7;b71 #cea1 #cfa1 #cfb1 #cfd7;c71 #cfd7;d71 #cfd7;e71 #cfd7;f71 #cfe1 #cff1 #eja1 #ejb1 #ejc1 #ejd1 #ejf1 #ejg7;a77#b71 #eji1 #eaj1 #ebd7;a77l71 #ebd7;a77#b71 #edd1 #ede1 #edf1 #edg1 #edh1 #edi7;a71 #edi7;c71 #edi7;d71 #eej1 #eea1 #eeb1 #eec1 #eee1 #eef1 #eeg1 #eei1 #efj1 #efa1 #efb1 #ibb1 #ibc1 #ibd1 #ibe1 #ibf1 #ibg1 #ibh1 #ibi1 #icj1 #idb1 #idd1 #ide1 #idf1 #aajb1 #aajc1 #aaji1 #aaaa7;b71 #aaac1 #aabb1 #aabc7;a77l71 #aabc7;a77#b71 #aabc7;a77#c71 #aabc7;a77#d71 #aabc7;a77#e71 #aabc7;b71 #aabc7;d71 #aabd1 #aabe1 #aabf7;a71 #aabf7;b71 #aabf7;c71 #aabf7;e71 #aabf7;f71 #aabf7;g71 #aabg7;d71 #aabh1 #aabi7;a77#b71 #aabi7;a77#c71 #aabi7;a77#f71 #aabi7;a77#h71 #aabi7;a77#aj71 #aabi7;b77l71 #aabi7;b77#b77;,a71 #aabi7;b77#b77;,b71 #aadb7;b71 #aadc1 #aadd1 and #aade of title #aa1 ,united ,states ,code1 apply in a case under this title4 7b7 ,a term used in a section of title #aa1 ,united ,states ,code1 made applicable in a case under this title by subsection 7a7 has the meaning defined for such term for the purpose of such applicable section1 unless such term is otherwise defined in section #bja4 7c7 ,a section made applicable in a case under this title by subsection 7a7 that is operative if the business of the debtor is authorized to be operated is operative in a case under this title4 7d7 ,solely for purposes of this title1 a reference to this title1 this chapter1 or words of similar import in a section of title #aa1 ,united ,states ,code1 made applicable in a case under this title by subsection 7a7 or to this title1 title #aa1 or words of similar import in a section of title #bh1 ,united ,states ,code1 made applicable in a case under this title by section #bbb or #bbe or in the ,federal ,rules of ,bankruptcy ,procedure made applicable in a case under this title by section #bbf shall be deemed to be a reference to this title4 ,,iii ,puerto ,rico chapter #i uniformity #cja4 ,short title ,this title may be cited as the ,puerto ,rico ,chapter #i ,uniformity ,act of #bjae4 #cjb4 ,amendment ,section #aja7eb7 of title #aa1 ,united ,states ,code1 is amended to read as follows3 7#eb7 ,the term ,state includes ,puerto ,rico and1 except for the purpose of defining who may be a debtor under chapter #i of this title1 includes the ,district of ,columbia4 4 #cjc4 ,effective date2 application of amendment 7a7 ,effective date ,except as provided in subsection 7b71 this ,act and the amendment made by this ,act shall take effect on the date of the enactment of this ,act4 7b7 ,application of amendment ,the amendment made by this title shall apply with respect to-- 7#a7 cases commenced under title #aa of the ,united ,states ,code on or after the date of the enactment of this ,act2 and 7#b7 debts1 claims1 and liens created before1 on1 or after such date4 #cjd4 ,severability ,if any provision of this title or any amendment made by this title1 or the application of such provision or amendment to any person or circumstance1 is held to be unconstitutional1 the remainder of this title and the amendments made by this title1 or the application of that provision or amendment to other persons or circumstances1 shall not be affected4