Signed by President Barack Obama II

Vote Smart's Synopsis:

Vote to concur with House amendments and pass a bill that establishes an oversight board to restructure the debt in Puerto Rico.

Highlights:

• Defines “agreed accounting standards” as modified accrual accounting standards which the Oversight Board determines in its sole discretion that a territorial government is not reasonably capable of comprehensive reporting that complies with modified accrual accounting standards (Sec. 5).

• Specifies that the purpose of the Oversight and Management Board is to provide a method for a covered territory to achieve fiscal responsibility and access to the capital markets and will be established for Puerto Rico (Title I, Sec. 101).

• Defines “bond claim” as a right to payment, or the right to an equitable remedy for breach of performance if such breach gives rise to a right of payment (Sec. 5).

• Authorizes the Oversight Board to issue subpoenas requiring the attendance and testimony of witnesses and the production of the following, including, but not limited to (Title I, Sec 104):

• Books;

• Records;

• Papers;

• Documents;

• Electronic files; and

• Tapes.

• Specifies that refusal to obey a subpoena will result in the Oversight Board gaining the authority to punish the individual in accordance with the court order (Title I, Sec. 104).

• Appropriates $2 million for the Oversight Board for the establishment of a territorial government (Title I, Sec. 107).

• Specifies that it is the duty of Congress to oversee policies established by the Oversight Board and ensure that their design maximizes the government’s effectiveness (Title II, Sec. 204).

• Prohibits the court of appeals, unless given consent by the Oversight Board from interfering in any stay, order, or decree in the case or any of the following, including, but not limited to (Title III, Sec. 305):

• Any political or governmental powers of the debtor;

• Any of the property or revenues of the debtor; or

• The use or enjoyment by the debtor of any income producing property.

• Specifies that nothing in this act shall be interpreted to restrict Puerto Rico’s right to determine its future political status and statehood (Title IV, Sec. 402).

• Establishes a first minimum wage for Puerto Rico (Title IV, Sec. 403).

Full Bill Text

Full Bill Text

Full Bill Text

Full Bill Text