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Group of Senators Introduce Puerto Rico bill

Sharon Edmondson, Washington Legislative Team Member | December 10, 2015

Senators Hatch (R-UT), Grassley (R-IA), and Murkowski (R-Alaska) introduced legislation to establish an authority to oversee Puerto Rico’s finances.

The legislation does not appear to provide the territory with Chapter 9 municipal bankruptcy protections, but it does authorize a financial responsibility and management authority to commit up to $3 billion to assist Puerto Rico with a transition towards a balanced budget and debt repayment.

The proposal also features a payroll tax cut to stimulate the economy and a study of public pension obligations. It also calls for Puerto Rico and all states to disclose for the first time, the true financial condition of their pension systems for government workers. The bill calls for federal agencies and the Federal Reserve of New York to provide technical assistance to the island and other territories for accounting purposes.

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