HR7833-119

What This Bill Does

The Puerto Rican People's Power Restoration Act creates a new route for ending the PROMESA Financial Oversight and Management Board. The Board terminates the day after Puerto Rico enacts legislation, after the federal amendment takes effect, that designates or establishes a successor entity. Without that Commonwealth law, the Board remains subject to PROMESA's existing termination requirements.

Once Puerto Rico enacts the applicable successor legislation, PREPA, its governing board, or another entity named in the law becomes the debtor representative for PREPA cases initiated under PROMESA title III on or after that enactment date. The provision is prospective by case-filing date and does not expressly replace the representative in a case already initiated.

Unless Puerto Rico's legislation explicitly provides otherwise, the successor representative must retain all professionals, advisers, and counsel that the Oversight Board had engaged before the law. That continuity rule limits the Commonwealth's ability to replace the restructuring team by silence but allows an explicit choice.

The Act preserves PROMESA plan-confirmation requirements and the District of Puerto Rico's jurisdiction. A fiscal plan or budget certified before federal enactment remains valid until the substituted representative modifies it or a plan of adjustment is confirmed. The bill does not forgive debt, invalidate prior budgets immediately, end a pending title III case, guarantee lower electricity rates, or terminate the Board without Commonwealth action.

Who Benefits and How

Puerto Rico's elected government gains control over the timing and structure of a successor. PREPA or another Commonwealth-designated entity gains debtor-representation authority in later-filed cases. Residents and ratepayers gain a path toward locally accountable fiscal governance, while retained professionals gain continuity unless legislation removes them.

Who Bears the Burden and How

The Oversight Board loses authority when Puerto Rico triggers termination. The successor entity assumes restructuring, fiscal-plan, budget, litigation, and professional costs. Creditors, bondholders, employees, and ratepayers face uncertainty from a governance transition, although preserved confirmation rules, plans, and court jurisdiction limit abrupt legal change.

Key Provisions

• Creates a Commonwealth-controlled Board termination trigger.
• Requires post-enactment Puerto Rico legislation.
• Terminates the Board one day after that legislation.
• Allows Puerto Rico to designate a successor entity.
• Substitutes PREPA in specified later-filed cases.
• Allows a governing board or other successor instead.
• Limits substitution to cases initiated after the trigger law.
• Retains existing professionals by default.
• Allows Puerto Rico law to reject retention explicitly.
• Preserves PROMESA confirmation requirements.
• Preserves previously certified fiscal plans.
• Preserves previously certified budgets.
• Allows successor modification of preserved plans.
• Preserves federal district-court jurisdiction.
• Provides no automatic debt forgiveness.
• Requires no immediate Board termination absent local legislation.