,i #aafth ,,congress #b;d ,session ,h4 ,r4 #fige ,,in ,,the ,,house ,,of ,,representatives ,may #bb1 #bjbj,mr4 ,grijalva 7for himself1 ,ms4 ,velzquez1 ,mr4 ,serrano1 ,mr4 ,soto1 and ,ms4 ,ocasio-,cortez7 introduced the following bill2 which was referred to the ,committee on ,natural ,resources1 and in addition to the ,committee on the ,judiciary1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act or ,,promesa1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,amendments to ,,promesa ,act of #bjbj4 #b4 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title4,sec4 #b4 ,table of contents4,sec4 #c4 ,preventing conflicts of interest by oversight board4,sec4 #d4 ,federal funding for operation of oversight board and title ,,iii proceedings4,sec4 #e4 ,funding for essential public services4,sec4 #f4 ,funding to promote economic growth4,sec4 #g4 ,funding for operation of the ,university of ,puerto ,rico4,sec4 #h4 ,disclosure by professional persons employed by court order4,sec4 #i4 ,disclosure by professional persons employed by debtor4,sec4 #aj4 ,access to information4,sec4 #aa4 ,,gao report on expenditures and operation of oversight board4,sec4 #ab4 ,puerto ,rico ,infrastructure ,revitalization repealed4,sec4 #ac4 ,territorial relief for unsecured public debt4,sec4 #ad4 ,puerto ,rico ,public ,credit ,comprehensive ,audit ,commission4,sec4 #ae4 ,severability clause4 #c4 ,preventing conflicts of interest by oversight board 7a7 ,eligibility for ,appointments ,section #aja7;f77#b7 of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baba7;f77#b77 is amended to read as follows3 7#b7 is not an officer1 elected official1 or employee of the territorial government1 a candidate for elected office of the territorial government1 a former elected official of the territorial government1 has never served in any official capacity in the territorial government or in any of the municipal governments or public corporations of the territorial government1 or financial institutions owned by the territorial government1 and has never been an employee or director of any corporation1 company1 or institution that sold1 purchased1 or insured financial assets to or from the territorial government4 4 7b7 ,executive director and staff oversight board ,section #ajc of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #babc7 is amended-- 7#a7 in subsection 7a71 by inserting after the period at the end the following3 ,an individual may not serve as ,executive ,director if that individual has served in an official capacity in the territorial government1 in a municipal government or public corporation of the territorial government1 or in a financial institution owned by the territorial government1 or has been an employee or director of a corporation1 company1 or institution that has sold financial assets to1 purchased financial assets from1 or insured financial assets of the territorial government42 and 7#b7 by amending subsection 7c7 to read as follows3 7c7 ,ethics ,board ,not later than #cj days after the date of the enactment of the ,amendments to ,,promesa ,act of #bjbj1 in the case of the ,oversight ,board for ,puerto ,rico1 or #cj days after the formation of an ,oversight ,board1 for an ,oversight ,board formed after the date of the enactment of this ,act1 the ,oversight ,board shall designate an ethics board comprised of #c nonexecutive board members4 ,the ethics board shall meet as needed1 but not less than once every #f months1 to consider the compliance of members1 the ,executive ,director1 employees1 contractors1 and subcontractors of the ,oversight ,board with all applicable ,federal laws regulating the conduct of the ,oversight ,board1 including conflict of interest1 financial disclosure1 and open government laws4 4 7c7 ,authority ,to enter into contracts ,section #ajd7;g7 of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #babd7;g77 is amended by inserting ,the total cost of contracts entered into under this subparagraph for any fiscal year may not exceed #e percent of the total operating budget of an ,oversight ,board for that fiscal year4 after the period at the end4 7d7 ,ethics ,section #aji of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #babi7 is amended-- 7#a7 in subsection 7a7-- 7,a7 by striking and staff after all members and inserting 1 employees1 contractors1 and sub-contractors2 7,b7 by inserting 1 without exception after ,united ,states ,code2 and 7,c7 after the period at the end1 by inserting ,an individual may not serve on an ,oversight ,board if that individual is in violation of section #bjh of title #ah1 ,united ,states ,code42 and 7#b7 by adding at the end the following3 7c7 ,formal written statement ,an individual1 including an individual under consideration for appointment or serving as a member of an ,oversight ,board on the date of the enactment of this subsection1 may not serve as a member of an ,oversight ,board or as an ,executive ,director unless the individual-- 7#a7 has issued a formal statement regarding that individual's past and present compliance1 and intent of future compliance with all applicable ,federal laws regulating the individual's conduct1 including conflict of interest1 financial disclosure1 and open government laws2 and 7#b7 has committed in writing to strictly abide by section #bjh of title #ah1 ,united ,states ,code1 and other applicable ,federal laws regulating their conduct1 including conflict of interest1 financial disclosure1 and open government laws4 7d7 ,federal lobbying ,section #aiac of title #ah1 ,united ,states ,code1 shall apply to all funds made available to members and staff of an ,oversight ,board without regard to the source of such funds4 7e7 ,annual ethics report ,not later than ,may #ae each year1 the ,executive ,director and each member of an ,oversight ,board shall file a report with the ethics board4 ,such annual reports shall-- 7#a7 be posted by the ethics board on the public electronic website of an ,oversight ,board not later than ,june #ast of each year2 7#b7 be filed in accordance with-- 7,a7 the ,ethics in ,government ,act of #aigh2 and 7,b7 the ,stop ,trading on ,congressional ,knowledge ,act of #bjab2 and 7#c7 include information detailing the following with regard to the individual during the year for which the report is filed3 7,a7 ,income of the individual4 7,b7 ,honoraria given to the individual4 7,c7 ,assets held by the individual4 7,d7 ,financial transactions by the individual4 7,e7 ,financial liabilities of the individual4 7,f7 ,positions held by the individual4 7,g7 ,agreements to which the individual is a part4 7,h7 ,travel taken by the individual4 7,i7 ,gifts received by the individual4 7,j7 ,other details required pursuant to paragraph 7#b74 4 7e7 ,required reports ,section #bjh of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #badh7 is amended by adding at the end the following3 7d7 ,annual ethics report 7#a7 ,annual report required ,not later than ,june #cjth of each year1 the ethics board shall submit a report detailing compliance by members1 employees1 contractors1 and subcontractors of an ,oversight ,board with section #aji directly to-- 7,a7 the ,president2 7,b7 the ,house of ,representatives ,committee on ,natural ,resources2 and 7,c7 the ,senate ,committee on ,energy and ,natural ,resources4 7#b7 ,confidentiality requirement ,members1 employees1 contractors1 or subcontractors of an ,oversight ,board may not-- 7,a7 view any part of a report compiled or being compiled to comply with this subsection before that report is submitted under paragraph 7#a72 7,b7 delay submission of the report compiled or being compiled to comply with this subsection2 and 7,c7 attempt to influence the ethics board to make any change to the content of a report compiled or being compiled to comply with this subsection4 4 #d4 ,federal funding for operation of oversight board and title ,,iii proceedings ,section #ajg of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #babg7 is amended-- 7#a7 by striking subsection 7b72 and 7#b7 by inserting after subsection 7a7 the following new subsections3 7b7 ,funding ,there is authorized to be appropriated such sums as may be necessary to carry out the operations and proceedings of an ,oversight ,board under title ,,iii4 7c7 ,remission of excess funds ,if an ,oversight ,board determines1 in its sole discretion1 that funds made available to an ,oversight ,board for the operations and proceedings of an ,oversight ,board under title ,,iii exceed the amount required for those operations and proceedings during a fiscal year1 the excess funds shall be remitted by the ,executive ,director to the ,department of the ,treasury not later than #cj days after the end of the fiscal year4 4 #e4 ,funding for essential public services ,section #bja7;b77#a77;,b7 of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #bada7;b77#a77;,b77 is amended-- 7#a7 by inserting full before funding2 and 7#b7 by inserting 1 including public education1 public safety1 health care1 and pensions before the semicolon4 #f4 ,funding to promote economic growth ,section #bja7;b77#a77;,j7 of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #bada7;b77#a77;,j77 is amended by inserting 1 including investments and expenditures to increase the creation of new jobs1 reduce income inequality1 increase gross national product and gross domestic product1 expand workforce development programs1 transition informal economic activity to the formal sector1 increase the median household income1 and reduce the number of residents living under the poverty level before the semicolon4 #g4 ,funding for operation of the ,university of ,puerto ,rico 7a7 ,amendment ,title ,,ii of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baja et seq47 is amended by adding at the end the following3 #bac4 ,funding for ,operation of the ,university of ,puerto ,rico ,until the termination of the ,oversight ,board for ,puerto ,rico pursuant to section #bji1 the ,fiscal ,plan for the ,commonwealth of ,puerto ,rico and the ,fiscal ,plan for the ,university of ,puerto ,rico1 developed under section #bja1 shall include an annual allocation of public funds to the ,university of ,puerto ,rico in an amount calculated under the funding formula of ,law #b-aiff or #hjj1jjj1jjj1 whichever is greater1 to allow the ,university of ,puerto ,rico to fulfill its major role as an essential public service and to comply effectively with its obligations and accreditation requirements4 4 7b7 ,clerical amendment ,the table of contents of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baja et seq47 is amended by inserting after the item relating to section #bab the following3 ,sec4 #bac4 ,funding for ,operation of the ,university of ,puerto ,rico4 4 #h4 ,disclosure by professional persons employed by court order 7a7 ,amendments ,title ,,iii of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baja et seq47 is amended by adding at the end the following3 #cah4 ,disclosure by professional persons employed by court order 7a7 ,required disclosure ,in a voluntary case commenced under section #cjd1 an attorney1 accountant1 appraiser1 auctioneer1 agent1 consultant1 or other professional person may not be compensated under section #caf unless1 before making a request for compensation1 such a professional person submitted a verified statement conforming to the disclosure requirements of rule #bjad7;a7 of the ,federal ,rules of ,bankruptcy ,procedure setting forth the professional person's connections with-- 7#a7 the debt1 creditors1 any other parties in interest2 7#b7 the attorneys and accountants of any person or entity listed pursuant to paragraph 7#a72 7#c7 an ,oversight ,board2 7#d7 any person employed by an ,oversight ,board2 and 7#e7 information on the identity of each entity or person with whom such professional person has a connection4 7b7 ,supplement ,a professional person referred to in subsection 7a7 shall be required to-- 7#a7 supplement such verified statement as additional relevant information becomes known to such person2 and 7#b7 annually file a notice confirming the accuracy of such statement4 7c7 ,review 7#a7 ,trustee ,the ,united ,states ,trustee-- 7,a7 shall review each verified statement submitted pursuant to subsection 7a72 7,b7 may file with the court comments on such verified statements before the professionals filing such statements seek compensation under section #caf2 and 7,c7 may object to any compensation application filed under section #caf that fails to satisfy the requirements of subsection 7d74 7#b7 ,standing ,a person having standing under section #aaji of title #aa1 ,united ,states ,code1 shall also have standing under this section4 ,the district court shall have jurisdiction to adjudicate all matters arising under this section4 7d7 ,retroactivity ,if1 on the date of the enactment of this section1 a court has entered orders approving compensation under cases commenced under section #cjd1 each professional person previously awarded compensation shall file a verified statement in accordance with subsection 7a7 not later than #cj days after such person's first request for compensation under section #caf occurring after the date of the enactment of this section4 ,the court may not delay any proceeding in connection with a case commenced under section #cjd pending the filing of a verified statement under this subsection4 7e7 ,limitation on compensation ,in a voluntary case commenced under section #cjd1 in connection with the review and approval of professional compensation under section #caf1 the court may deny allowance of compensation for services and reimbursement of expenses accruing after the date of the enactment of this section to a professional person if such professional person-- 7#a7 failed to file statements of connections required by subsection 7a7 or filed inadequate statements of connections2 7#b7 is at any time during such professional person's employment in such case not a disinterested person as defined in section #aja7ad7 of title #aa1 ,united ,states ,code2 or 7#c7 represents1 or holds an interest adverse to1 the interest of the estate with respect to the matter on which such professional person is employed1 except that the qualification standards for committee professionals shall be those set forth in section #aajc7;b7 of title #aa1 ,united ,states ,code4 4 7b7 ,clerical amendment ,the table of contents of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baja et seq47 is amended by inserting after the item relating to section #cag the following3 ,sec4 #cah4 ,disclosure by professional persons employed by court order4 4 #i4 ,disclosure by professional persons employed by debtor 7a7 ,requirements ,title ,,iii of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baja et seq47 is amended-- 7#a7 in section #cja7;a7-- 7,a7 by inserting #cbg1 after #aab12 and 7,b7 by inserting #cbh1 #cbi1 before #ccc12 7#b7 in section #caf7;a7 by inserting and subject to sections #cbh and #cbi of title #aa1 ,united ,states ,code1 after hearing12 and 7#c7 by adding at the end the following3 #cai4 ,disclosure by professional persons employed by the debtor 7a7 ,required disclosure 7#a7 ,disclosure required ,an order approving the employment of attorneys1 accountants1 appraisers1 auctioneers1 agents1 or other professional persons pursuant to section #cbg of title #aa1 ,united ,states ,code 7as incorporated into this title by section #cja of this ,act71 shall be accompanied by a verified statement of the professional person to be employed setting forth the professional person's individual connections 7if any7 with-- 7,a7 the debtor1 creditors1 any other party in interest2 7,b7 the attorneys and accountants of any person or entity listed pursuant to paragraph 7#a72 7,c7 an ,oversight ,board2 and 7,d7 any person employed by an ,oversight ,board4 7#b7 ,additional information ,such statement shall include information on the identify of each entity or person listed in the statement required under paragraph 7#a74 7b7 ,prohibition ,no claim of privilege1 or of contractual or legal confidentiality1 shall be allowed relating to any disclosure required by subsection 7a7 or by ,rule #bjad7;a7 of the ,federal ,rules of ,bankruptcy ,procedure4 4 7b7 ,clerical amendment ,the table of contents of ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baja et seq47 is amended by inserting after the item relating to section #cah the following3 ,sec4 #cai4 ,disclosure by professional persons employed by the debtor4 4 7c7 ,effective date2 application of amendments 7#a7 ,effective date ,except as provided in paragraph 7#b71 this section and the amendments made by this section shall take effect on ,june #cj1 #bjaf4 7#b7 ,special application ,the amendments made by paragraphs 7#a77;,a7 and 7#b7 of subsection 7a7 shall take effect #cj days after the date of the enactment of this section4 #aj4 ,access to information 7a7 ,amendment ,title ,,iii of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baja et seq47 is amended by adding after section #cai 7as added by section #i of this ,act71 the following3 #cbj4 ,access to information relating to public debt of ,puerto ,rico 7a7 ,public documents ,any document1 record1 or information relating to the public debt of ,puerto ,rico or any of its territorial instrumentalities1 including any document relating to any public offering1 contract1 agreement1 order1 or report detailing how funds obtained are spent1 or contract or agreements with a creditor1 shall be-- 7#a7 classified as a public document2 and 7#b7 made accessible to any interested person4 7b7 ,confidentiality ,any claim of confidentiality relating to information described in subsection 7a7 by any person1 including any entity1 current or past official of ,puerto ,rico1 or current or past official of the ,oversight ,board for ,puerto ,rico shall be construed narrowly in favor of promoting transparency and the right of the public to that information4 7c7 ,enforcement ,on complaint1 the ,united ,states ,district ,court for the district of ,puerto ,rico shall have jurisdiction to enjoin the ,oversight ,board for ,puerto ,rico or any local agency from withholding agency records and to order the production of any agency records improperly withheld from the complainant4 ,in such a case1 the ,district ,court shall determine the matter de novo and may examine the contents of such agency records in camera to determine whether the records1 in whole or in part1 should be withheld under any exemption set forth in section #eeb7;b7 of title #e1 ,united ,states ,code 7commonly known as the ,freedom of ,information ,act74 ,the ,oversight ,board for ,puerto ,rico or a local agency shall bear the burden of proving that an exemption applies4 ,the ,district ,court's jurisdiction over these matters shall be nonexclusive and without prejudice to any remedies provided under local law4 7d7 ,attorney fees ,the ,united ,states ,district ,court for the district of ,puerto ,rico may assess against the ,oversight ,board of ,puerto ,rico or a relevant local agency reasonable attorney fees and other costs reasonably incurred in any case under this section in which the complainant obtained any relief through either-- 7#a7 a judicial order or an enforceable written agreement or consent decree2 or 7#b7 a voluntary or unilateral change in position by the agency1 if the complainant's claim is not insubstantial4 4 7b7 ,clerical amendment ,the table of contents of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baja et seq47 is amended by inserting after the item relating to section #cai the following3 ,sec4 #cbj4 ,access to information relating to public debt of ,puerto ,rico4 4 #aa4 ,,gao report on expenditures and operation of oversight board 7a7 ,amendment ,title ,i of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baja et seq47 is amended by adding at the end the following3 #aaj4 ,report on ,oversight ,board ,not later than #cj days after the last day of each fiscal year1 the ,comptroller ,general of the ,united ,states shall report to the ,president1 the ,house of ,representatives ,committee on ,natural ,resources and the ,senate ,committee on ,energy and ,natural ,resources the results of an audit completed for the calendar year before the report containing-- 7#a7 details of all matters related to the receipt1 disbursement1 and use of ,federal funds authorized under section #d2 7#b7 an analysis of the expenditures and estimate of the cost to the ,united ,states of the operation of an ,oversight ,board2 7#c7 the compliance or noncompliance of an ,oversight ,board with this ,act and all other applicable laws2 and 7#d7 recommendations for improving the operations of an ,oversight ,board4 4 7b7 ,clerical amendment ,the table of contents of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baja et seq47 is amended by inserting after the item relating to section #aji the following3 ,sec4 #aaj4 ,report on ,oversight ,board4 4 #ab4 ,puerto ,rico ,infrastructure ,revitalization repealed ,title ,v of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #bbaa et seq47 7relating to ,puerto ,rico ,infrastructure ,revitalization7 is repealed4 #ac4 ,territorial relief for unsecured public debt 7a7 ,in general ,the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baja et seq47 is amended by adding after title ,,vii1 the following3 ,,viii ,,territorial ,,relief #hja4 ,definitions ,for purposes of this title3 7#a7 ,collateral ,the term collateral means property subject to a security interest4 7#b7 ,financial obligation ,the term financial obligation means an obligation validly owed as of the effective date of this title by a qualifying territory or an instrumentality of a qualifying territory that arises from any-- 7,a7 security issued by a qualifying territory or instrumentality of a qualifying territory2 7,b7 loan taken out by a qualifying territory or instrumentality of a qualifying territory2 7,c7 repurchase or swap or other derivative contract entered into by a qualifying territory or instrumentality of a qualifying territory2 or 7,d7 guaranty of any security or loan or repurchase or swap or other derivative contract by a qualifying territory or instrumentality of a qualifying territory2 and does not include any-- 7i7 claim made by a vendor or service provider that is owed payment by a qualifying territory or an instrumentality of a qualifying territory for a good or service rendered in the ordinary course of business2 7ii7 claim made by or on behalf of a current or former employee of a qualifying territory or an instrumentality of a qualifying territory that is owed payment for a pension or other retirement benefit1 or for a health care benefit of any kind2 or 7iii7 claim against a qualifying territory or an instrumentality of a qualifying territory for a pending tax refund or tax credit4 7#c7 ,instrumentality ,the term instrumentality includes-- 7,a7 a political subdivision of a qualifying territory2 7,b7 a public agency of a qualifying territory2 7,c7 a public corporation of a qualifying territory2 and 7,d7 a banking corporation of a qualifying territory4 7#d7 ,per ,capita ,debt of the ,territory ,the term per capita debt of a territory means the quotient obtained by dividing-- 7,a7 the aggregate amount of the financial obligations of a territory and the instrumentalities of the territory1 which shall not include-- 7i7 ,federal debt2 and 7ii7 the unfunded liabilities of a pension system of the government of the qualifying territory or any instrumentality of a qualifying territory for the payment of pension and other retirement benefits1 or health care benefits of any kind1 to current or former employees of the qualifying territory or the instrumentality of the qualifying territory that are owed payment for a pension or other retirement benefit1 or for a health care benefit of any kind2 by 7,b7 the population of the territory 7based on the most recent data available from the ,bureau of the ,census74 7#e7 ,proceeds ,the term proceeds means amounts-- 7,a7 acquired from the sale1 lease1 license1 exchange1 or other disposition of collateral2 and 7,b7 collected from1 or distributed on account of1 collateral4 7#f7 ,qualifying territory ,the term qualifying territory means a territory that meets two or more of the following qualifications3 7,a7 ,the population of the territory1 based on the most recent data available from the ,bureau of the ,census1 has decreased by more than #e percent during the #aj-year period ending on the date of a discharge under section #hjb4 7,b7 ,the territory received major disaster assistance under the ,robert ,t4 ,stafford ,disaster ,relief and ,emergency ,assistance ,act 7#db ,u4,s4,c4 #eaba et seq47 during the #e-year period ending on the date of a discharge under section #hjb4 7,c7 ,the per capita debt of the territory is greater than #ae1jjj 7as adjusted annually to reflect the percentage change in the ,consumer ,price ,index for all ,urban ,consumers published by the ,bureau of ,labor ,statistics of the ,department of ,labor74 7#g7 ,secured financial obligation ,the term secured financial obligation means any financial obligation to the extent of the value of any collateral pledged by a qualifying territory or any instrumentality of a qualifying territory to secure the repayment of the financial obligation pursuant to a valid and perfected security interest under applicable territorial law1 not including-- 7,a7 any property acquired or anticipated to be acquired by a qualifying territory or an instrumentality of a qualifying territory after the date of a discharge under section #hjb1 even if that property1 when acquired1 would have become collateral subject to a security interest2 or 7,b7 any proceeds1 products1 offspring1 or profits of the collateral not in existence on the date of a discharge under section #hjb1 unless the property constitutes the proceeds of a collateral to which the security interest has attached as of the date of the discharge4 7#h7 ,territory ,the term territory has the meaning given such term in section #e7bj7 excluding subparagraph 7,e7 of such section4 7#i7 ,unsecured financial obligation ,the term unsecured financial obligation means any financial obligation to the extent the financial obligation is not a secured financial obligation4 #hjb4 ,relief through exercise of the power to regulate commerce1 the bankruptcy power1 and the territorial power 7a7 ,in general ,pursuant to clauses #c and #d of section #h of article ,i and clause #b of section #c of article ,,iv of the ,constitution of the ,united ,states1 any unsecured financial obligation of a qualifying territory or an instrumentality of a qualifying territory that is outstanding is discharged on the date on which a resolution stating that the qualifying territory wishes to discharge the unsecured financial obligations of the qualifying territory and the instrumentalities of the qualifying territory-- 7#a7 is adopted by an affirmative vote of more than #ej percent of the members of each house of the legislature of that qualifying territory and is signed by the chief executive of the qualifying territory2 or 7#b7 is adopted by an affirmative vote of not less than two-thirds of the members of each house of the legislature of that qualifying territory4 7b7 ,limitation ,a qualifying territory may discharge unsecured financial obligations of the qualifying territory and the instrumentalities of the qualifying territory under this title not more frequently than once during any #g-year period4 ,such discharge shall prohibit the qualifying territory from discharging1 adjusting1 or impairing1 in any manner or degree including in a proceeding under title ,,iii1 a claim made by a vendor or service provider that is owed payment by a qualifying territory or an instrumentality of a qualifying territory that is owed payment for a pension or other retirement benefit1 or for a health care benefit of any kind4 7c7 ,no stay of actions by qualifying territory ,to obtain a discharge ,notwithstanding any other provision of ,federal1 ,state1 or territorial law1 the ability of a qualifying territory to obtain a discharge under this title shall not be stayed1 avoided1 or otherwise limited by operation of any provision of law or by order of a court1 an ,oversight ,board1 or an administrative agency in any proceeding4 7d7 ,secured financial obligations unaffected 7#a7 ,in general ,except as provided in paragraph 7#c7 of section #hjc1 nothing in subsection 7a7 shall affect the validity and enforceability of any financial obligation of a qualifying territory or an instrumentality of a qualifying territory to the extent that the obligation is a secured financial obligation4 7#b7 ,voidability ,notwithstanding paragraph 7#a71 a secured financial obligation of a qualifying territory or an instrumentality of a qualifying territory may be voidable or otherwise impaired under any other applicable law4 7e7 ,rule of construction ,nothing in this title shall be construed to operate as a stay of a pending case brought under title ,,iii1 or of any act of an ,oversight ,board appointed under this ,act1 or to reinstate financial obligations discharged under this title through any procedure under this ,act4 #hjc4 ,effect of discharge ,a discharge under section #hjb shall-- 7#a7 except with regard to actions brought under section #hjd1 operate as a permanent stay1 applicable to all entities and enforceable by the qualifying territory or an instrumentality of the qualifying territory in any court with jurisdiction over an action described in section #hjd7;a71 against the commencement or continuation of an action1 the employment of process1 or an act to collect1 recover1 or offset any outstanding financial obligation to the extent that the financial obligation is not a secured financial obligation as of the date of the discharge1 regardless of whether discharge of that unsecured financial obligation is waived by the qualifying territory2 7#b7 void any outstanding judgment entered on an unsecured financial obligation of the qualifying territory or an instrumentality of the qualifying territory to the extent that such judgment is a determination of liability of the qualifying territory or instrumentality2 and 7#c7 if prior to the date of the discharge under section #hjb1 the qualifying territory or an instrumentality of the qualifying territory entered into a security agreement securing a financial obligation1 prevent the security interest created by the security agreement from attaching to any property acquired by the qualifying territory or an instrumentality of a qualifying territory after the date of the discharge under section #hjb1 except to the extent that such property constitutes the proceeds of collateral to which the security interest had attached as of the date of the discharge4 #hjd4 ,actions related to the status of financial obligations 7a7 ,in general ,any financial obligation is conclusively deemed to be an unsecured financial obligation except to the extent that the holder of that obligation proves that the financial obligation is a secured financial obligation in an action for a declaratory judgment that is filed-- 7#a7 in-- 7,a7 an appropriate territorial court of the qualifying territory2 or 7,b7 a district court of the ,united ,states in the qualifying territory2 and 7#b7 not later than #ahj days after the date of a discharge under section #hjb4 7b7 ,burden of proof ,in an action described in subsection 7a71 the holder of an obligation shall be required to prove by clear and convincing evidence that-- 7#a7 the obligation is a secured financial obligation2 and 7#b7 any revenues generated after a discharge under section #hjb are the proceeds of the collateral securing the secured financial obligation4 7c7 ,exclusive jurisdiction ,notwithstanding title #bh1 ,united ,states ,code1 a court described in subsection 7a77#a7 shall have exclusive jurisdiction over an action involving1 arising from1 or related to the status of a financial obligation as a secured or an unsecured financial obligation under subsection 7a71 including-- 7#a7 any action asserting a taking under the fifth article of amendment to the ,constitution of the ,united ,states2 and 7#b7 any action for declaratory judgment4 7d7 ,appeals ,any appeal from an action under this section shall be heard solely-- 7#a7 for a case filed under subsection 7a77#a77;,a71 in the appropriate territorial court of the qualifying territory2 or 7#b7 for a case filed under subsection 7a77#a77;,b71 in the appropriate court of appeals of the ,united ,states for the qualifying territory4 7e7 ,costs ,all parties shall bear their own costs in an action under this section4 7f7 ,estoppel ,any party to an action under this section shall be estopped in other actions from claiming that the party has been deprived of the property of that party by virtue of-- 7#a7 a discharge under section #hjb2 or 7#b7 a final ruling in an action described in subsection 7a7 that a financial obligation of a party is an unsecured financial obligation4 7g7 ,bar on avoidance actions by creditors ,notwithstanding any other provision of law1 a creditor of a qualifying territory or an instrumentality of a qualifying territory that has received a discharge under this title may not avoid or bring an action to avoid1 directly or derivatively1 any transfer of property made by the qualifying territory or instrumentality4 7h7 ,avoidance of security interests by qualifying territories and instrumentalities of qualifying territories 7#a7 ,in general ,in addition to the relief provided elsewhere in this ,act1 a qualifying territory or an instrumentality of a qualifying territory1 in a civil action described in paragraph 7#b71 may avoid any security interest-- 7,a7 securing a financial obligation that would be avoidable by a trustee in a case under chapter #g of title #aa1 ,united ,states ,code1 filed on the date of the discharge under section #hjb if1 notwithstanding sections #aja7da7 and #aji7;a7 of title #aa1 ,united ,states ,code1 or any statute of limitations under that title1 the qualifying territory or the instrumentality of the qualifying territory were deemed an eligible debtor under such chapter #g2 or 7,b7 securing a financial obligation to the extent that the amount owed on the financial obligation exceeds the value of any collateral1 subject to restrictions under paragraph 7#c71 securing the financial obligation4 7#b7 ,civil actions ,a civil action described in this paragraph shall be-- 7,a7 brought by a qualifying territory1 an instrumentality of a qualifying territory1 or a relator on behalf of a qualifying territory or an instrumentality of a qualifying territory not later than #b years after the date of a discharge under section #hjb2 and 7,b7 filed in-- 7i7 an appropriate territorial court of the qualifying territory2 or 7ii7 a district court of the ,united ,states for the qualifying territory4 7#c7 ,value of collateral ,for the purpose of determining the value of collateral under paragraph 7#a77;,b71 the following shall not be included3 7,a7 ,any proceeds1 products1 offspring1 or profits of the collateral not in existence on the date of a discharge under section #hjb1 regardless of whether those proceeds1 products1 off-spring1 or profits of the collateral would become collateral subject to a security interest after the date of a discharge under section #hjb4 7,b7 ,any property acquired or anticipated to be acquired by a qualifying territory or an instrumentality of a qualifying territory after the date of a discharge under section #hjb1 regardless of whether that property1 when acquired1 would have become collateral subject to a security interest4 7,c7 ,any contract right to tax revenues that arise after the date of a discharge under section #hjb4 #hje4 ,notice of discharge 7a7 ,in general 7#a7 ,responsibilities of a qualifying territory or an instrumentality of a qualifying territory ,after a discharge under section #hjb1 the qualifying territory shall promptly-- 7,a7 notify the ,secretary of the ,treasury of the discharge2 7,b7 provide actual notice of the discharge and of the right to bring an action under section #hjd to-- 7i7 any known holder of a financial obligation as of the date of the discharge2 7ii7 any known indenture trustee for a financial obligation as of the date of the discharge2 7iii7 any known agent bank for the loan1 swap1 repurchase agreement1 or other derivative of the holder of a financial obligation as of the date of the discharge2 and 7iv7 any known financial guaranty insurer of a financial obligation as of the date of the discharge2 7,c7 publish a general notice1 in each of the governmental languages of the qualifying territory1 of the discharge and of the right to bring an action under section #hjd in-- 7i7 not less than #a newspaper of general circulation of each governmental language published in the qualifying territory2 and 7ii7 not fewer than #b daily newspapers that each have a national circulation in the ,united ,states and a general audience2 and 7,d7 publish the general notice described in subparagraph 7,c7 in the newspapers described in subparagraph 7,c7 not less than once each week during the #c-week period beginning on the date on which that general notice is first published4 7#b7 ,notice in the federal register ,on the date on which the ,secretary of the ,treasury receives the notice described in paragraph 7#a77;,a71 the ,secretary of the ,treasury shall promptly cause to be published in the ,federal ,register a notice of that discharge and of the right to bring an action under section #hjd4 7b7 ,adequate notice 7#a7 ,holders of financial obligations 7,a7 ,in general ,a holder of a financial obligation shall be presumed to have received adequate notice of a discharge under section #hjb if1 during the #ahj-;day period beginning on the date of a discharge under section #hjb1 a qualifying territory provides actual notice of the discharge and of the right to bring an action under section #hjd to-- 7i7 the holder of the financial obligation as of the date of the discharge2 7ii7 an indenture trustee for the security of the holder as of the date of the discharge2 or 7iii7 an agent bank for the loan1 swap1 repurchase agreement1 or other derivative of the holder of a financial obligation as of the date of the discharge4 7,b7 ,rebuttable presumption ,the presumption described in subparagraph 7,a7 may be rebutted by clear and convincing evidence that the holder of the financial obligation did not receive adequate evidence4 7#b7 ,notice to a financial guaranty insurer ,a financial guaranty insurer shall be conclusively deemed to have received adequate notice of a discharge under section #hjb if1 during the #ahj-;day beginning on the date of a discharge under section #hjb1 the financial guaranty insurer receives actual notice of the discharge and of the right to bring an action under section #hjd4 #hjf4 ,applicability ,this title shall not apply to ,american ,samoa1 the ,commonwealth of the ,northern ,mariana ,islands1 ,guam1 or the ,virgin ,islands of the ,united ,states4 #hjg4 ,effective date ,this title shall take effect #fj days after the date of the enactment of the ,amendments to ,,promesa ,act of #bjbj4 4 7b7 ,clerical amendment ,the table of contents of the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baja et seq47 is amended by inserting after the items relating to title ,,vii the following3 ,,title ,,viii--,,territorial ,,relief ,sec4 #hja4 ,definitions4 ,sec4 #hjb4 ,relief through exercise of the power to regulate commerce1 the bankruptcy power1 and the territorial power4 ,sec4 #hjc4 ,effect of discharge4 ,sec4 #hjd4 ,actions related to the status of financial obligations4 ,sec4 #hje4 ,notice of discharge4 ,sec4 #hjf4 ,applicability4 ,sec4 #hjg4 ,effective date4 4 #ad4 ,puerto ,rico ,public ,credit ,comprehensive ,audit ,commission 7a7 ,in general ,the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baja note et seq47 7as amended by section #ac of this ,act7 is further amended by adding at the end the following3 ,,ix ,,public ,,credit ,,comprehensive ,,audit #ija4 ,puerto ,rico ,public ,credit ,comprehensive ,audit ,commission 7a7 ,definitions ,in this title1 the following definitions apply3 7#a7 ,audit actions ,the term audit actions means-- 7,a7 the public debt contracting1 refinancing1 or renegotiation process2 7,b7 the source and intended use of resources2 and 7,c7 the implementation of programs and projects financed with domestic or foreign debt4 7#b7 ,commission ,the term ,commission means the ,puerto ,rico ,public ,credit ,comprehensive ,audit ,commission4 7#c7 ,comprehensive audit ,the term comprehensive audit means a supervisory action taken to-- 7,a7 examine and evaluate audit actions2 7,b7 consider legal and financial aspects1 and the economic1 social1 ecological1 national1 and municipal impacts of audit actions2 and 7,c7 using the information obtained after completing the requirements under paragraphs 7#a7 and 7#b71 determine the legitimacy1 lawfulness1 transparency1 quality1 efficacy1 and efficiency of the audit actions4 7#d7 ,cooperative sector ,the term cooperative sector means autonomous associations of persons united voluntarily to meet their common needs and aspirations through a jointly owned and democratically-controlled enterprise4 7b7 ,establishment2 dissolution ,there is established an independent commission to be known as the ,puerto ,rico ,public ,credit ,comprehensive ,audit ,commission4 ,the ,commission-- 7#a7 shall be created as an independent entity within the territorial government2 7#b7 shall not be a department1 agency1 establishment1 or instrumentality of the ,federal ,government2 and 7#c7 shall dissolve after the ,commission completes or fulfills each duty of the ,commission under subsection 7c7 and issues the final report of the ,commission under subsection 7g74 7c7 ,duties ,the ,commission shall-- 7#a7 order a comprehensive audit of all public debt of ,puerto ,rico and its instrumentalities1 in conformity with the ,government ,accountability ,office's ,generally ,accepted ,government ,auditing ,standards 7also known as the ,yellow ,book72 and 7#b7 audit all public debt issued during the period beginning on the first day of fiscal year #aigb and ending on the date of enactment of this section1 including-- 7,a7 a current and complete accounting as to the amount of outstanding indebtedness as of the date of the enactment of this section2 7,b7 an analysis of the sustainability of outstanding debts2 7,c7 an assessment of how rules1 policies1 and controls over the use of debt can be improved upon to ensure that in the future ,puerto ,rico's debt load is sustainable and issued in a manner that effectively protects the legal and financial interests of the ,government of ,puerto ,rico2 and 7,d7 an investigation into any irregularities1 apparent or alleged1 wherein probable cause of malfeasance or misfeasance is found4 7d7 ,organizational ,responsibilities ,the ,commission shall-- 7#a7 adopt internal bylaws as appropriate for the proper operations and fulfillment of the objectives of the ,commission2 7#b7 designate and hire a minimum number of regular personnel required to carry out the duties and fulfill the objectives of the ,commission2 7#c7 start its examination of the debt from the most recently issued bonds and review issuances in reverse chronological order2 and 7#d7 hold a regular meeting not less than once each month4 7e7 ,authority 7#a7 ,in general ,to carry out its duties under this section 7c71 the ,commission-- 7,a7 may audit1 and ensure the transparency of1 the indebtedness process of ,puerto ,rico and each instrumentality of the ,commonwealth of ,puerto ,rico2 and 7,b7 shall have primary jurisdiction to intervene1 have knowledge of1 and conduct1 on the initiative of the ,commission1 any investigation on any matter or dispute relating to any indebtedness process described in subparagraph 7,a74 7#b7 ,subpoena power 7,a7 ,in general ,the ,commission may issue subpoenas requiring the attendance and testimony of witnesses and the production of books1 records1 correspondence1 memoranda1 papers1 documents1 electronic files1 metadata1 tapes1 and materials of any nature relating to any matter under investigation by the ,commission4 ,jurisdiction to compel the attendance of witnesses and the production of such materials shall be governed by #cb ,l4,p4,r4,a4 ,app4 ,,iii4 ,r4 #d4 #g41 as amended4 7,b7 ,failure to obey a subpoena ,if a person refuses to obey a subpoena issued under subparagraph 7,a71 the ,commission may apply to the court of first instance of ,puerto ,rico4 ,any failure to obey the order of the court may be punished by the court in accordance with civil contempt laws of ,puerto ,rico4 7,c7 ,service of subpoenas ,the subpoena of the ,commission shall be served in the manner provided by the rules of procedure for the courts of ,puerto ,rico1 the ,rules of ,civil ,procedure of ,puerto ,rico4 7f7 ,appointment of ,members 7#a7 ,in general ,not later than #ahj days after the date of the enactment of this section1 the ,governor of ,puerto ,rico shall appoint the following individuals to serve on the ,commission3 7,a7 ,one professor of economics from any public higher education institution located in ,puerto ,rico4 7,b7 ,one professor of finance from any public higher education institution located in ,puerto ,rico4 7,c7 ,one professor of accounting from any public higher education institution located in ,puerto ,rico4 7,d7 ,one professor of statistics from any public higher education institution located in ,puerto ,rico4 7,e7 ,one professor of law from any public higher education institution located in ,puerto ,rico4 7,f7 ,one professor of sociology from any public higher education institution located in ,puerto ,rico4 7,g7 ,one representative of the labor union sector in ,puerto ,rico4 7,h7 ,one representative of the business community in ,puerto ,rico1 with preference given to a representative from a small- or medium-sized business located in ,puerto ,rico4 7,i7 ,one representative of the cooperative sector in ,puerto ,rico4 7,j7 ,one individual who is a certified translator or interpreter of ,english and ,spanish4 7#b7 ,failure to ,appoint ,members ,if the ,governor of ,puerto ,rico fails to appoint any member of the ,commission in accordance with paragraph 7#a71 not later than #cfj days after the date of the enactment of the ,amendments to ,,promesa ,act of #bjbj1 the ,president of the ,senate of ,puerto ,rico and the ,speaker of the ,house of ,representatives of ,puerto ,rico shall jointly appoint any member who has not been appointed4 7g7 ,chairperson 7#a7 ,in general ,after the members of the ,commission are appointed under subsection 7f71 the members shall elect one member to serve as the ,chairperson of the ,commission4 7#b7 ,duties ,the ,chairperson shall-- 7,a7 call and preside over meetings of the ,commission2 7,b7 serve as the legal representative of the ,commission2 and 7,c7 have the determinative vote in the case of a tie vote of the ,commission4 7h7 ,term ,members of the ,commission shall be appointed for the life of the ,commission4 7i7 ,vacancies ,any vacancy in the ,commission shall not affect the powers of the ,commission and shall be filled in the same manner as the original appointment or election4 7j7 ,reports ,not later than #ahj days after the date of enactment of this section1 and not later than every #ahj days thereafter1 the ,commission shall file with the ,president1 the ,committee on ,natural ,resources of the ,house of ,representatives1 the ,committee on ,energy and ,natural ,resources of the ,senate1 the ,governor of ,puerto ,rico1 and the legislature of ,puerto ,rico1 and make publicly available1 a report describing the progress of the ,commission in carrying out the duties of the ,commission under subsection 7c74 7k7 ,funding ,there is authorized to be appropriated such sums as may be necessary to carry out this title4 4 7b7 ,clerical amendment ,the table of contents for the ,puerto ,rico ,oversight1 ,management1 and ,economic ,stability ,act 7#dh ,u4,s4,c4 #baja et seq47 7as amended by this ,act7 is further amended by adding at the end the following3 ,,title ,,ix--,,public ,,credit ,,comprehensive ,,audit ,sec4 #ija4 ,puerto ,rico ,public ,credit ,comprehensive ,audit ,commission4 4 #ae4 ,severability clause ,if any provision of this ,act or an amendment made by this ,act1 or the application of a provision or amendment to any person or circumstance1 is held to be invalid for any reason in any court of competent jurisdiction1 the remainder of this ,act and amendments made by this ,act1 and the application of the provisions and amendment to any other person or circumstance1 shall not be affected4