La Asamblea Legislativa Demanda
La Asamblea Legislativa Demanda
La Asamblea Legislativa Demanda
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In re: PROMESA
Title III
THE FINANCIAL OVERSIGHT AND
MANAGEMENT BOARD FOR PUERTO RICO, No. 17 BK 3283-LTS
Debtors. 1
HON. THOMAS RIVERA-SCHATZ (in his official
capacity and on behalf of the Senate of Puerto Rico), and
HON. CARLOS J. MÉNDEZ-NÚÑEZ (in his official
capacity and on behalf of the House of Representatives of
Puerto Rico),
v.
Defendants.
1
The Debtors in these Title III Cases, along with each Debtor’s respective Title III case number and the last four (4)
digits of each Debtor’s federal tax identification number, as applicable, are the (i) Commonwealth of Puerto Rico
(Bankruptcy Case No. 17 BK 3283-LTS) (Last Four Digits of Federal Tax ID: 3481); (ii) Puerto Rico Sales Tax
Financing Corporation (“COFINA”) (Bankruptcy Case No. 17 BK 3284-LTS) (Last Four Digits of Federal Tax
ID: 8474); (iii) Puerto Rico Highways and Transportation Authority (“HTA”) (Bankruptcy Case No. 17 BK 3567-
LTS) (Last Four Digits of Federal Tax ID: 3808); (iv) Employees Retirement System of the Government of the
Commonwealth of Puerto Rico (“ERS”) (Bankruptcy Case No. 17 BK 3566-LTS) (Last Four Digits of Federal
Tax ID: 9686); and (v) Puerto Rico Electric Power Authority (“PREPA”) (Bankruptcy Case No. 17 BK 4780-
LTS) (Last Four Digits of Federal Tax ID: 3747). (Title III case numbers are listed as Bankruptcy Case numbers
due to software limitations).
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Hon. Thomas Rivera-Schatz, in his official capacity as President of the Senate of Puerto Rico and
on behalf of the Senate of Puerto Rico, and Hon. Carlos J. Méndez-Núñez, in his official capacity
as Speaker of the House of Representatives of Puerto Rico and on behalf of the House of
Representatives (collectively, the “Plaintiffs”), hereby bring the instant “Legislative Assembly Of
The Commonwealth Of Puerto Rico’s Adversary Complaint For Declaratory And Injunctive
Relief” against Defendants (i) the Financial Oversight and Management Board for Puerto Rico
(the “FOMB”), (ii) each of its members, and (iii) its Executive Director (collectively, the
I. INTRODUCTION
1. At issue in this action for declaratory and injunctive relief is the FOMB’s unlawful
Commonwealth’s republican form of government, which the U.S. Supreme Court defined as “the
right of the people to choose their own officers for governmental administration, and pass their
own laws in virtue of the legislative power reposed in representative bodies, whose legitimate acts
may be said to be those of the people themselves,” Puerto Rico v. Sánchez-Valle, 136 S. Ct. 1863,
2. Pursuant to the Puerto Rico Constitution, the Legislative Assembly (of which the Senate
and the House of Representatives are a part of) is vested with the legislative power. See, Puerto
Rico Const. Art. III, § 1. Such power is “nearly, if not quite, as extensive as those exercised by the
state legislatures.” See, Franklin California Tax-Free Tr. v. Puerto Rico, 805 F.3d 322, 352 (1st
Cir. 2015), aff'd, 136 S. Ct. 1938, 195 L. Ed. 2d 298 (2016) (quoting, People of Puerto Rico v. E.
2
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3. The Legislative Assembly’s constitutional legislative power includes, among other things,
the authority to set forth the Commonwealth’s public policy of any law regarding employees in
the private or public sector. Contrary to what the FOMB might believe, there is no provision in the
Puerto Rico Oversight, Management and Economic Stability Act (“PROMESA”) that allows the
FOMB to strip the Legislative Assembly and such authority, and P.R. Laws Ann. tit. 29, §§ 185a
et seq., (“Law 80”), which prohibits wrongful discharges of private sector employees, is one such
law. 2
4. Nor does PROMESA allow the FOMB to impose its public policy recommendations upon
the Legislative Assembly. According to PROMESA, the purpose of the FOMB is to “provide a
method for a covered territory to achieve fiscal responsibility and access to the capital markets.”
See, PROMESA § 101(a); 48 U.S.C. § 2121(a). To achieve the FOMB’s purpose, Congress
provided it with certain limited powers, which include, inter alia, approving annual fiscal plans
developed by the Governor of Puerto Rico and annual budgets submitted by the Governor of Puerto
Rico to the Puerto Rico Legislature. See, PROMESA §§ 201, 202; 48 U.S.C. §§ 2121(b)(1), 2142.
And, of particular relevance here, Congress provided the FOMB with the additional power to
2
Law 80, enacted in 1976, is applicable only to private sector employees and “imposes a monetary penalty on
employers who dismiss employees without just cause. In this way, Law 80 modifies the concept of at-will
employment, which traditionally permits the employment relationship to be severed at any time, and for any reason.”
Otero-Burgos v. Inter Am. Univ., 558 F.3d 1, 7 (1st Cir. 2009) (citations omitted). “[A] terminated at-will employee
is typically not entitled to compensation.” Id. Law 80, however, “changes this situation for those employees to whom
it applies.” Id.
“By its terms, Law 80 offers relief for “[e]very employee in commerce, industry, or any other
business or work place ... in which he/she works for compensation of any kind, contracted without
a fixed term, who is discharged from his/her employment without just cause.” P.R. Laws Ann. tit.
29, § 185a. “A discharge made by mere whim or fancy of the employer or without cause related to
the proper and normal operation of the establishment shall not be considered as a discharge for [just]
cause.” Id. at § 185b. In such cases, the law requires the employer to pay the discharged employee
a form of severance pay known as a “mesada,” which is calculated using a formula provided by the
statute. Id. at § 185a. If an employee is terminated for a reason that constitutes “just cause” under
the statute, the employer will not be liable under Law 80. See P.R. Laws. Ann. tit. 29, §§ 185a, b.”
Id., at 7-8.
3
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submit non-binding “recommendations to the Governor or the Legislature on actions the territorial
government may take to ensure compliance with the Fiscal Plan, or to otherwise promote the
financial stability, economic growth, management responsibility, and service delivery efficiency
5. On April 24, 2018, the FOMB submitted a draft bill to the Legislative Assembly which,
among other things, proposed repealing Law 80. This was, quite simply, a public policy
recommendation, the Legislative Assembly accommodated the FOMB’s recommendation, and the
Senate of Puerto Rico approved Senate Bill 1011, which repealed Law 80 in its entirety
6. Displeased with the Senate’s version of Senate Bill 1011, the FOMB sent a letter to the
President of the House of Representative’s Government Affairs Committee evaluating Senate Bill
1011, warning that if the Legislative Assembly did not approve a bill repealing Law 80
4
retroactively, it would face cuts in its operational budget. The House of Representatives then
approved its version of Senate Bill 1011, which also repealed Law 80 prospectively. 5 The Senate,
however, did not concur with the amendments made by the House of Representatives to Senate
Bill 1011 when the bill was sent to a conference committee. Thus, the bill to repeal Law 80 was
7. In Senate Bill 1011, the Legislative Assembly exercised its constitutional prerogative and
power to legislate, and furthered the public policy goal of balancing the need to promote new job
creation and increase labor force participation, as set forth in the May 30, 2018 Fiscal Plan, while
3
See, Exhibit 1, Senate Bill 1011 as approved by the Senate of Puerto Rico.
4
See, Exhibit 2, Letter dated June 4, 2018, signed by defendant Natalie A. Jaresko.
5
See, Exhibit 3, Senate Bill 1011 as approved by the House of Representatives.
4
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protecting the rights of employees to which Law 80 currently applied. And by repealing Law 80
205 of PROMESA that Puerto Rico be transformed to an at-will employment jurisdiction which
the FOMB touted, was the “single most important reform for long-term economic well-being in
Puerto Rico.” 6
8. Senate Bill 1011 was also consistent with the May 30, 2018 Fiscal Plan because repealing
according to the FOMB’s own economic forecasts.7 According to the FOMB’s own financial and
economic studies, converting Puerto Rico into an at-will labor market would increase economic
“By putting the Puerto Rico labor market on a competitive footing with other U.S.
jurisdictions, this will make the investment environment in Puerto Rico more
competitive with those same U.S. jurisdictions. It is from the increased investment
that the demand for labor will find its biggest boost and begin a virtuous cycle of
investment, employment, growth and further investment. By focusing on changing
Puerto Rico’s labor environment, new investors will be attracted to Puerto Rico
given the confidence in a strong labor market that has flexible rules. By getting firms
to invest, economic growth will be enabled.
[…]
Human capital and workforce reforms will improve workforce participation, well-
being and self-sufficiency of welfare recipients, and preparedness of adults and
youth for a long and fulfilling career, resulting in a cumulative GNP impact of
0.80% by FY2023. The impact is enhanced in the long-term as K-12 education
reforms begin adding an additional 0.01% GNP impact per year, resulting in an
additional 0.16% uptick by FY2048.”
See, Exhibit 5, Memorandum: Labor Reform as a Catalyst for Growth at p. 22, 29.
6
See, Exhibit 4, May 30, 2018 Revised Fiscal Plan, p. 35.
7
See, Exhibit 5 Memorandum: Labor Reform as a Catalyst for Growth, p. 12-13; Exhibit 6, June 29, 2018 Revised
Fiscal Plan, p. 34-36.
5
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9. However, the FOMB rejected Senate Bill 1011, and then improperly refused to certify the
Commonwealth budget approved by the Legislative Assembly for the sole reason it did not
8
approve a bill repealing Law 80 in the way and manner the FOMB wanted. Additionally, the
FOMB imposed several punitive measures, which included reducing the Legislative Assembly’s
operational budget by approximately 20%. In doing so, the FOMB exceeded its authority under
10. Contrary to what the FOMB believes, Congress did not transform the Commonwealth’s
Legislative Assembly into a rubber stamp for the FOMB, and the FOMB cannot bypass the limits
to its authority imposed by Congress through strong-arm tactics. Congress did not do away with
PROMESA explicitly provides that “subject to Title I and Title II of this Act,” PROMESA “does
not limit or impair the power of [Puerto Rico] to control, by legislation or otherwise, [Puerto Rico]
[Puerto Rico] or [its] territorial instrumentality, including expenditures for such exercise . . .”
11. In drafting PROMESA, Congress intended that the FOMB “will provide guardrails for the
Puerto Rico government, but will not supplant or replace [Puerto Rico’s] elected leaders, who will
retain primary control over budgeting and fiscal policymaking.” See, H.R. Report No. 114-602, at
p. 112 (2016). As explained by this Court, “Congress did not grant the FOMB the power to
supplant, bypass, or replace the Commonwealth's elected leaders and their appointees in the
exercise of their managerial duties whenever the Oversight Board might deem such a change
8
See, Exhibit 7, Letter dated June 29, 2018, signed by defendant Natalie A. Jaresko.
6
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expedient.” See, In re Fin. Oversight & Mgmt. Bd. for Puerto Rico, 583 B.R. 626, 634 (D.P.R.
2017).
12. In refusing to certify the Legislative Assembly’s budget signed by the Governor of Puerto
Rico and retaliating against the Legislative Assembly by cutting its budget by 20%, all because it
did not approve a bill repealing Law 80 the way the FOMB wanted, the FOMB unlawfully
encroached upon the Legislative Assembly’s exclusive legislative power under the Puerto Rico
Constitution. Not only does the Legislative Assembly have a financial stake in the outcome of this
case, but it also has a vested interest in making sure that the legislative power conferred by the
13. For the reasons detailed below, the Court should grant the relief requested herein, which
includes: (i) declaring that the FOMB overreached its powers by demanding that the Legislative
Assembly approve a bill repealing Law 80 retroactively as a condition for the approval of the
Commonwealth’s Budget; (ii) issuing an injunction prohibiting the defendants from implementing
the FOMB’s 2018-2019 budget; and (iii) ordering the FOMB to certify as compliant the 2018-
14. This Court has federal question jurisdiction under 28 U.S.C. § 1332 because the action
arises under PROMESA, a federal statute. In addition, PROMESA section 106(a) vests
federal courts with exclusive jurisdiction to hear disputes against the Oversight Board, or any
action otherwise arising out of PROMESA. See 48 U.S.C. § 2126(a). This Court also
has jurisdiction over this matter pursuant to PROMESA section 306(a)(2) because this action
relates to the Commonwealth’s PROMESA Title III case, which has the principal purpose of
adjusting the financial liabilities of the Commonwealth, see 48 U.S.C. § 2166(a)(2), and
7
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because any plan of adjustment in the Commonwealth’s Title III case must be consistent with a
15. This Court has personal jurisdiction over the FOMB and its members because it i s
an entity within the Government, which maintains an office in Puerto Rico. This Court also
has personal jurisdiction over the FOMB and its members under section 306(c) of PROMESA.
16. Venue is proper in this District under PROMESA sections 106(a) and 307, and 28
17. This is an appropriate action for declaratory and injunctive relief under the federal
Declaratory Judgment Act, 28 U.S.C. § 2201 and 2202. Declaratory relief is proper here
because there exists an actual, justiciable controversy between the parties concerning the
Oversight Board’s efforts to usurp the legislative power conferred upon the Legislative
III. PARTIES
18. Plaintiff Thomas Rivera-Schatz is a Senator of the Commonwealth of Puerto Rico and the
President of the Senate of Puerto Rico. He is authorized to bring this action on behalf of the Senate
of Puerto Rico pursuant to Rule 6 (p) of the Regulation of the Senate of Puerto Rico.
Puerto Rico and the Speaker of the House of Representatives of Puerto Rico. He is authorized to
bring this action on behalf of the House of Representatives of Puerto Rico pursuant to Rule 5.2 (p)
20. Defendant FOMB is an entity within the Government that Congress created under
8
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PROMESA, the FOMB maintains an office in Puerto Rico. The Plaintiffs do not seek damages
21. Defendant José B. Carrión III (the “FOMB’s Chairman”) is the Chairman of the FOMB.
The FOMB’s Chairman participated in the FOMB’s certification of the fiscal plans and the
FOMB’s budget. The FOMB Chairman is empowered, together with the FOMB Board Members
and the FOMB Executive Director, to oversee and monitor the implementation of the FOMB’s
Fiscal Plans and Budget. The Plaintiffs sue the FOMB’s Chairman, and any successors thereto,
solely in their official capacities. The Plaintiffs do not seek damages with respect to the FOMB’s
Chairman.
22. Defendants Andrew G. Biggs, Carlos M. García, Arthur J. González, José R. González,
Ana J. Matosantos, David A. Skeel, Jr. (collectively, the “FOMB Members”) are members of the
FOMB. The FOMB Members participated in the FOMB’s certification of the FOMB Fiscal Plans
and Budget. The FOMB Members are each empowered, together with the FOMB Chairman and
FOMB Executive Director, to oversee and monitor the implementation of the FOMB Fiscal Plans
and Budget. The Plaintiffs sue the FOMB Members, and any successors thereto, solely in their
official capacities. The Plaintiffs do not seek damages with respect to the FOMB Members.
23. Defendant Natalie A. Jaresko (the “FOMB Executive Director”) is the Executive Director
of the FOMB. The FOMB Executive Director participated in the FOMB’s certification of the
FOMB Fiscal Plans and Budget. The FOMB Executive Director is empowered, together with the
FOMB Chairman and FOMB Members, to oversee and monitor the implementation of the FOMB
Fiscal Plans and Budget. The Plaintiffs sue the FOMB Executive Director, and any successors
thereto, solely in their official capacities. The Plaintiffs do not seek damages with respect to the
9
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IV. FACTS
i. PROMESA did not strip the Legislative Assembly of its legislative power.
24. In June 2016, Congress enacted the PROMESA statute to deal with Puerto Rico’s financial
crisis. According to PROMESA, the purpose of the FOMB is to “provide a method for [Puerto
Rico] to achieve fiscal responsibility and access to the capital markets.” See, PROMESA § 101(a);
48 U.S.C. § 2121(a).
25. To achieve this purpose, Congress provided the FOMB with certain limited powers, which
include the authority to approve annual fiscal plans developed by the Governor of Puerto Rico,
(See, PROMESA § 201; 48 U.S.C. § 2121(b)(1), and annual budgets submitted by the Governor
of Puerto Rico to the Puerto Rico Legislature (See, PROMESA §202; 48 U.S.C. §2142).
26. Under Section 204 of PROMESA, Congress provided the FOMB with an additional,
limited power to review the impact that Commonwealth laws will have “on revenues and
[…]
10
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28. In drafting Section 204 of PROMESA, Congress did not provide the FOMB with the
authority to unilaterally nullify legislative acts or enacted laws, in contrast to Public Law 104-8,
which created the oversight board for the District of Columbia. See, H.R. Rep. No. 114-602, at p.
111 (2016) (“[PROMESA] establishes a board that is robust but reasonable. Its powers are far less
potent than the powers the Congress conferred upon the board that it established for the District of
Columbia in Public Law 104-8 ....”); Id. at 113 (“An earlier version of PROMESA ... required the
oversight board to review every legislative act enacted by the Puerto Rico government and to make
a determination—in the board's sole discretion—about whether each act was consistent with the
certified fiscal plan .... [I]f the board determined that the act was significantly inconsistent with
the fiscal plan, the board was required to declare the act “null and void.” This was essentially the
procedure in place for the District of Columbia under Public Law 104–8 ....”) In contrast to Public
Law 104-8, PROMESA requires an interactive process between the FOMB, the Governor and the
Puerto Rico Legislature before the FOMB “may take such actions as it considers necessary, . . . to
ensure that the enactment or enforcement of the law will not adversely affect the territorial
government's compliance with the Fiscal Plan, including preventing the enforcement or application
of the law.” Id., § 2144(a)(5). To trigger this enforcement provision, however, the law must be
11
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29. Importantly, the FOMB’s power under §204(a) is limited to laws enacted “during any fiscal
year in which the Oversight Board is in operation[.]” Id., § 2144(a)(1). That is, to laws enacted
after, rather than before the FOMB became operational. Had Congress intended to grant the FOMB
the power to “prevent the enforcement or application” of Commonwealth laws existing prior to
the FOMB becoming operational, it would have said so plainly when it enacted PROMESA. Thus,
Congress clearly did not provide the FOMB with boundless authority to invalidate Commonwealth
laws, since there is no other provision allowing the FOMB to “prevent the enforcement or
application” of Commonwealth laws that are inconsistent with a Fiscal Plan other than section §
204(a) of PROMESA.
30. Congress also provided the FOMB with the power to submit “recommendations to the
Governor or the Legislature on actions the territorial government may take to ensure compliance
with the Fiscal Plan, or to otherwise promote the financial stability, economic growth, management
responsibility, and service delivery efficiency of the territorial government[.]” See, PROMESA
§205(a); 48 U.S.C.A. § 2145(a). The only consequence the Legislature or Governor face for not
adopting a recommendation is that “the Governor or the Legislature” submit a statement with
“explanations for the rejection of the recommendations . . . to the President and Congress.” See, §
205(b)(3); 48 U.S.C.A. § 2145(b)(3). Importantly, PROMESA does not allow the FOMB to
impose any punitive measure against any component of the government of Puerto Rico for not
31. Although the FOMB may, under § 201(b) require that a Fiscal Plan “provide for capital
expenditures” nor the term “investment” is defined in PROMESA. To be sure, repealing a labor
12
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“investment,” as such terms are commonly used. See, Atl. Fish Spotters Ass'n v. Evans, 321 F.3d
220, 224 (1st Cir. 2003) (“In discerning Congress's intent from the statute itself, we attribute to
words that are not specially defined in the text their ordinary usage, albeit with the commonsense
understanding that meaning can only be ascribed to language when it is taken in context.”) (citing
32. Clearly, repealing Law 80 is a policy measure contemplated under § 205 of PROMESA.
Interpreting the provisions of § 201 that would render § 205 unnecessary would violate another
basic cannon of statutory construction. See, TRW Inc. v. Andrews, 534 U.S. 19, 31, 122 S. Ct. 441,
449, 151 L. Ed. 2d 339 (2001) (“It is a cardinal principle of statutory construction that a statute
ought, upon the whole, to be so construed that, if it can be prevented, no clause, sentence, or word
shall be superfluous, void, or insignificant.”) (citations and quotation marks omitted); Accord,
Yershov v. Gannett Satellite Info. Network, Inc., 820 F.3d 482, 487 (1st Cir. 2016).
33. Finally, this Court recently outlined the limits of the FOMB’s powers. (“Congress did not
grant the [Oversight Board] the power to supplant, bypass, or replace the Commonwealth’s elected
leaders and their appointees in the exercise of their managerial duties whenever the Oversight
Board might deem such a change expedient.”); See, In re Fin. Oversight & Mgmt. Bd. for Puerto
Rico, 583 B.R. 626, 634 (D.P.R. 2017) (“Although the [Board’s] fiscal plan and budgeting powers
give it a strong and substantially determinative voice in overall strategy regarding the
Commonwealth’s revenues, expenses, and general direction for responsible management, they do
not imply that the [Board’s] role includes . . . direct executive authority over implementation of
those plans or budgets.”); Id., at 636 (“PROMESA requires a debtor to work alongside the [Board]
and divides the debtor’s authority by putting key restructuring tools in the hands of the [Board],
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while preserving the elected government’s operational control and voice in management and
strategic decisions. . . . PROMESA leaves the elected government in place and does not suspend
34. A very significant final observation of this Court in that case was that:
“[T]he structure established by Titles I and II, alongside the reservation of territorial
power in section 303, requires the FOMB and the territorial government to work
together to establish a fiscally responsible path forward that is acceptable to the
FOMB. Congress might have chosen to make the FOMB's job easier in the short
term by granting it direct control and disabling the Commonwealth government's
ability to dissent, but it did not do so. Congress deliberately divided responsibility
and authority between the two.
Id., p. 636.
35. Similar to 83 B.R. 626, which involved an effort by the FOMB to assume control of the
Puerto Rico Power Authority’s affairs, at issue in the instant adversary complaint is the FOMB
attributing to itself powers it does not have under PROMESA. This time around, however, rather
than trying to assume control over a public corporation, the FOMB is attempting to circumvent the
limits to its powers by forcing the Legislative Assembly to legislate in the way and manner the
FOMB saw fit. As shown below, the FOMB refused to certify a valid budget approved by the
Legislative Assembly when it did not pass a bill repealing Law 80 - a recommendation under §
205 of PROMESA.
ii. The FOMB demands that the Legislative Assembly approve a bill repealing Law
80 as a condition for the approval of the Commonwealth’s budget, and then
retaliates after the Legislative Assembly did not repeal Law 80 in the way and
manner in which the FOMB dictated.
36. On April 24, 2018 the FOMB submitted to the Legislative Assembly a labor reform draft
Article 2 of Law No. 180-1998, to increase the minimum wage by $0.25 cents for certain
9
See, Exhibit 8, FOMB’s Labor Reform Draft Bill.
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individuals; (ii) a repeal of the Christmas bonus law for employees in the private sector effective
September 30, 2018; (iii) amendments aimed to reduce the amount of paid vacation days and the
amount of sick leave; and (iv) restrict claims under the local whistleblower statute to employment
law violations, reducing the statute of limitations for such claims from three years (3) to one (1)
37. The proposed legislation in the FOMB’s labor reform draft bill stemmed from a Fiscal Plan
reform initiatives to change labor conditions” the April 2018 Fiscal Plan states, in relevant part,
that:
“To reduce the cost to hire and encourage job creation, including movement of
informal jobs to the formal economy, Puerto Rico must become an employment at-
will jurisdiction, reduce mandated paid leave (including sick leave and vacation
pay) by 50%, and make the Christmas Bonus voluntary for employers.
At-will employment (in place by January 1, 2019): 49 out of 50 U.S. states are
employment-at will jurisdictions, giving employers the flexibility to dismiss an
employee without having to first prove just cause. Matching this policy will lower
the cost and risk of hiring in Puerto Rico.
Reduction of mandated paid leave, including sick leave and vacation pay (effective
immediately): Most U.S. states do not mandate any vacation or sick leave. The
Government shall halve mandated vacation and sick leave, resulting in 14 days per
year of vacation and sick leave in a move to align worker protections with typical
mainland labor policies. Paid maternity leave under current law will be retained.
No mandated Christmas bonuses (eliminated by January 1, 2019): The current
requirement to pay an annual Christmas bonus to employees must be eliminated.
Employers may continue to pay bonuses on a voluntary basis, as is the case on the
mainland.” 12
38. The April 2018 Fiscal Plan further states that “[t]he New Fiscal Plan is built on the
assumption that, by no later than May 31, 2018, the Legislative Assembly of Puerto Rico will pass
10
Id., p. 4-8.
11
See, Exhibit 9, April 2018 Fiscal Plan.
12
Id., p. 38-39
15
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the Labor Reform Package and present it to the Governor of Puerto Rico for his signature (the
“Condition”).” 13 The “Labor Reform Package” was defined in the April 2018 Fiscal Plan as “all
legislation, that are necessary and proper to effectuate the Labor Reform Agenda.” 14
39. On April 24, 2018, the FOMB submitted a letter to the Governor and the Puerto Rico
Legislative Assembly pursuant to § 202(b) of PROMESA with a forecast of revenues for fiscal
40. The FOMB’s labor reform draft bill was introduced in the Senate of Puerto Rico as Senate
Bill 919, and referred to the Senate’s Committee on Federal, Political and Economic Relations (the
“Senate Committee”).
41. The Senate Committee immediately scheduled public hearings on the FOMB’s labor
reform draft bill (Senate Bill 919), and invited the FOMB’s Chairman, Mr. José Carrión III to
speak in support of it. Mr. Carrión III, however, informed the Senate Committee that he could not
attend. 16 On April 30, 2018, the Senate Committee again invited the FOMB’s Chairman to speak
in support of Senate Bill No. 919, but Mr. Carrión III declined once again, citing § 108 of
42. Public hearings regarding the draft bill were held nonetheless on May 9, 2018 and May 15,
2018. The Senate Committee also requested the FOMB to provide the supporting the economic
13
Id., p. 42.
14
Ibid.
15
See, Exhibit 10, Letter dated April 24, 2018, signed by defendant José B. Carrión III, Appendix A; See, 48 U.S.C.A.
§ 2142(b) (“The Oversight Board shall submit to the Governor and Legislature a forecast of revenues for the period
covered by the Budgets by the time specified in the notice delivered under subsection (a), for use by the Governor in
developing the Budget under subsection (c).”)
16
See, Exhibit 11, Letter to defendant Carrión III, dated April 26, 2018; Exhibit 12, Letter dated April 27, 2018,
signed by defendant Carrión III.
17
See, Exhibit 13, Letter to defendant Carrión III, dated April 30, 2018; Exhibit 14, Letter dated May 4, 2018,
signed by defendant Carrión III.
16
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data for the reforms provided in Senate Bill No. 919. 18 In response, on May 28, 2018 (just three
days shy of the May 31, 2018 deadline for the “the Legislative Assembly of Puerto Rico [to] pass
the Labor Reform Package and present it to the Governor of Puerto Rico for his signature” set in
the April 2018 Fiscal Plan) the FOMB forwarded the Senate Committee a memorandum titled
43. On May 30, 2018, the FOMB published a revised Fiscal Plan (the “May 2018 Fiscal
Plan”).20 Chapter 7 of the May 2018 Fiscal Plan maintained the requirement that Puerto Rico
become an at-will employment jurisdiction effective January 1, 2019, but omitted the additional
reforms of the “Labor Reform Package” outlined in the April 2018 Fiscal Plan, to wit: (i) making
the payment of the Christmas bonus for employees in the private sector voluntary instead of
mandatory, (ii) reducing the amount of paid vacation and sick leave, and (iii) restricting the
44. Repealing Law 80, according to the May 2018 Fiscal Plan, was needed to “improve job
creation” and “increase labor force participation,” and was the “single most important reform for
45. Repealing Law 80, however, failed to generate any additional revenue for Fiscal Year 2019
according to the May 2018 Fiscal Plan, nor would it create any immediate economic growth. 23
46. On May 30, 2018 the FOMB published in its website a document containing an alleged
“understanding” (the “May 30, 2018 Understanding”) supposedly reached between the Governor
and the FOMB, regarding the structural reforms and fiscal measures to be implemented as a
18
See, Exhibit 15, Letter to defendant Carrión III, dated May 9, 2018.
19
See, Exhibit 5 Memorandum: Labor Reform as a Catalyst for Growth.
20
See, Exhibit 4, May 30, 2018 Revised Fiscal Plan.
21
Id., p. 35-36.
22
Id., p. 34-35.
23
Id., p. 34-35.
17
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condition for the approval of the Commonwealth’s budget for fiscal year 2018-2019. The
“The Legislature shall introduce and the Governor shall sign a bill that repeals Act
No. 80 of May 30, 1976 (the “Bill”) on or before June 27, 2018, which shall become
effective on or before January 1, 2019. The Bill shall be presented to the FOMB
prior to its introduction in the Legislature so that the FOMB can confirm that it is
consistent with the fiscal plan. The Bill cannot increase the mandatory benefits for
private sector employees (e.g., no increase in vacation days, sick days, sick leave,
mandated paid leave, Christmas bonus, or minimum wage) or otherwise undermine
the goals or intent of the labor reform as provided in Chapter 7 of the New Fiscal
Plan. The Bill shall state that, for the avoidance of doubt, an employee hired for an
indefinite period of time does not have a cause of action against their employer
merely for the employer’s termination of the employment relation.” 24
47. On May 30, 2018, after extensive hearings, and despite economic studies to the contrary,
Senate Bill 1011 passed in the Senate of Puerto Rico. The final version of Senate Bill 1011
repealed Law 80 prospectively, rather than retroactively as demanded by the FOMB. Senate Bill
1011 as approved by the Senate of Puerto Rico provided that new employees hired after the
Puerto Rico (the “House Committee”) was evaluating Senate Bill 1011 and House Bill 1634, which
also repealed Law 80. On June 4, 2018, the President of the House Government Affairs Committee,
Hon. Jorge Navarro, forwarded a letter to the FOMB requesting what would be the effect on the
Fiscal Plan and the Budget if the May 30, 2018 Understanding reached between the Governor and
the FOMB was not complied with, or the House of Representatives passed Senate Bill 1011 (which
24
See, Exhibit 16, Alleged Understanding between FOMB and Governor, p. 1.
25
See, Exhibit 1, Senate Bill 1011 as approved by the Senate of Puerto Rico, p. 6-7.
26
See, Exhibit 17, Letter to defendant Natalie A. Jaresko, dated June 4, 2018
18
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49. The FOMB responded by rejecting the manner in which Senate Bill 1011 repealed Law 80
prospectively, without providing a reasoned explanation. Specifically, on June 4, 2018, the FOMB
responded that “at a minimum, the Oversight Board would revert to the Fiscal Plan as certified by
the Oversight Board on April 19, 2018 (the “April 2018 Fiscal Plan”), and would submit a budget
to the Governor and Legislature that is consistent with that Fiscal Plan.” 27
50. The FOMB’s letter specified that “if the Government of Puerto Rico fails to comply exactly
with the understanding reached with the Oversight Board concerning the repeal of Law 80, the
[i] Eliminate the annual appropriation for the Christmas bonus for public sector
employees
[ii] Eliminate the annual appropriation of $25 million for student scholarships at
the University of Puerto Rico
[iii] Eliminate the annual appropriation of $50 million for economic development
initiatives for municipalities
[iv] Eliminate the multiyear fund of $345 million for various economic
development and reform implementation initiatives as requested by the
Government of Puerto Rico
[v] Maintain the elimination of the Christmas bonus for both public sector and
private sector employees as well as the reduction in sick days and paid leave for
private sector employees, as required by the labor reform outlined in the April 19
Fiscal Plan to facilitate investment and job creation in Puerto Rico[; and]
[vi] Maintain the cuts to the budgets of the Legislature and Judiciary as
outlined in the April 19 Fiscal Plan” 28
51. On June 6, 2018, the FOMB forwarded the Puerto Rico Legislative Assembly a document
titled “Unanimous Written Consent Approving Submission of Commonwealth’s Fiscal Year 2019
27
See, Exhibit 3, Letter dated June 4, 2018 signed by defendant Natalie A. Jaresko.
28
Id., p. 1-2 (Emphasis ours).
19
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Budget to the Legislature” attached to a draft of the Joint Budgetary Resolutions totaling
52. On June 14, 2018, the Puerto Rico House of Representatives passed Senate Bill 1011 with
amendments. The final version of Senate Bill 1011, as approved by the House of Representatives,
30
repealed Law 80 prospectively, but the amendments included by the House version of the
Senate’s bill were not approved by the Senate. In the end, the Legislative Assembly could not
53. On June 29, 2018 – a day before the conclusion of the legislative session pursuant to the
Puerto Rico Constitution – the FOMB submitted a letter to the Puerto Rico Legislature and the
Governor, stating that the FOMB would follow through with the cost-cutting measures listed in its
June 4, 2018 letter sent to the House Government Affairs Committee because the Legislative
“[W]e now know that the Government of Puerto Rico will not implement the New
Fiscal Plan in full because the Legislature did not comply with the April 19, 2018
version of the New Fiscal Plan or with the May 30, 2018 version of the New Fiscal
Plan. The Legislature failed to pass the most important component of the Labor
Reform Package – the repeal of Law 80 and turning Puerto Rico into an at-will
employment jurisdiction – as required by the New Fiscal Plan. Accordingly, the
Oversight Board will follow through on the commitment that it made in its letter,
dated June 4, 2018, to Representative Jorge Navarro Suárez, who had asked the
Oversight Board what would happen if the Legislature did not comply with the New
Fiscal Plan.” 31
54. The cost-cutting measures included, among others, “[r]ight sizing measures will be
29
See, Exhibit 18, FOMB’s Unanimous Written Consent of June 6, 2018.
30
See, Exhibit 3, Senate Bill 1011 as approved by the House of Representatives.
31
See, Exhibit 7, Letter dated June 29, 2018 signed by defendant Natalie A. Jaresko.
32
Id., p. 2.
20
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55. On June 30, 2018, the Legislative Assembly approved a budget totaling $8,708,623,000.00
to be allocated from the General Fund of the State Treasury (the “2018-2019 Legislative Assembly
56. On June 30, 2018, the FOMB refused to certify the 2018-2019 Legislative Assembly
Budget, and approved its own budget (the “2018-2019 FOMB Budget”), with $8,757,524,000.00
to be allocated from the General Fund of the State Treasury.34 That is, $48,901,000.00 more than
57. Although more funds were allocated in the 2018-2019 FOMB Budget as compared to the
2018-2019 Legislative Assembly Budget, the 2018-2019 FOMB Budget contained severe budget
cuts to the Senate and House of Representatives of Puerto Rico of approximately 20% compared
to the 2018-2019 Legislative Assembly Budget. Specifically, the FOMB reduced the Senate’s
$10,242,000.00.35
58. The FOMB clearly acted beyond its authority by rejecting the Legislative Assembly’s
budget because of its refusal to repeal Law 80 retroactively – a matter within the exclusive purview
PROMESA, since it was geared to “promote the . . . economic growth . . . of the territorial
government ...[.]” See, PROMESA §205(a). And despite the fact that nothing in PROMESA
authorizes the FOMB to require that the Legislative Assembly adopt a recommendation under
§ 205, the Legislative Assembly accommodated the FOMB through Senate Bill 1011.
33
See, Exhibit 20, 2018-2019 Legislative Assembly Budget Certification.
34
See, Exhibit 21, Excerpt of 2018-2019 FOMB Budget, sum total of amount allocated from the General Fund of
the State Treasury in Joint Resolutions at p. 46 ($6,991,155,000), 119 ($1,766,369,000).
35
See, Exhibit 20, 2018-2019 Legislative Assembly Budget Certification.
21
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59. By doing so, the Legislative Assembly exercised its legislative power, and balanced the
public policy goal recommended by the FOMB in the May 2018 Fiscal Plan of promoting new job
creation and increase labor force participation, while protecting the rights of employees to which
Law 80 currently applied. To this date, the FOMB has failed to adequately explain how repealing
Law 80 would promote economic growth and increase job participation, nor has it explained how
or why repealing Law 80 prospectively would not promote the same economic growth claimed by
the FOMB.
60. As noted before, the purpose of repealing Law 80, according to the May 30, 2018 Fiscal
Plan, was to create new jobs and increase labor force participation. See, Exhibit 4, p. 39 (“To
reduce the cost to hire and encourage faster job creation, including movement of informal jobs to
the formal economy, Puerto Rico must become an employment at-will jurisdiction…”) Moreover,
the FOMB’s “Labor Reform Agenda” in the April 2018 Fiscal Plan, which included fully repealing
Law 80, failed to generate a single dollar of additional revenue in Fiscal Year 2019. 36 Likewise,
the May 2018 Fiscal Plan, which also included repealing Law 80, also failed to generate a single
dollar of additional revenue in Fiscal Year 2019.37 In short, Senate Bill 1011 met the reasons
advanced by the FOMB, and there was no rational reason for the FOMB’s insistence on repealing
Law 80 retroactively.
61. As previously discussed, PROMESA does not deprive the Commonwealth’s elected
Government the power to control its political and governmental functions, except as limited by
36
See; Exhibit 5 Memorandum: Labor Reform as a Catalyst for Growth, p. 12-13; Exhibit 9, April 2018 Fiscal Plan,
p. 33.
37
See, Exhibit 4, May 2018 Revised Fiscal Plan, p. 34-35.
22
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62. Titles I and II provide that upon FOMB’s certification of a fiscal plan and budgets, it has
certain powers to oversee and enforce compliance with such fiscal plans and budgets.
Notwithstanding, the Government retains its political, governmental, and operational powers.
63. Under PROMESA section 205(a), the Government can reject FOMB’s recommendations.
64. FOMB’s role is to provide oversight to help Puerto Rico achieve these goals, but governing
the Commonwealth is left to Puerto Rico’s elected Government. PROMESA § 303; 48 U.S.C.
§ 2163.
65. The FOMB doesn’t even have the power to impose penalties on Commonwealth officers
or employees. PROMESA leaves that to the Governor, reflecting respect for Puerto Rico’s
sovereignty. PROMESA § 104(l); 48 U.S.C. § 2124(l). The Oversight Board cannot even remove
66. PROMESA prohibits the FOMB from interfering with the elected Government’s actions
to “implement territorial laws, which are consistent with a certified Fiscal Plan, that execute
ours.)
67. FOMB’s sole remedy where the Government declines to adopt a recommendation is the
requirement that the Government explain its decision to the U.S. President, Speaker of the House,
and Majority Leader of the U.S. Senate. See PROMESA § 205(b)(3); 48 U.S.C. § 2145(b)(3).
68. PROMESA’s reservation of political and governmental powers to the elected Government
is evinced, for example, in the Congress’ rejection of Senate Bill 2381, dated December 9, 2015,
which would have granted FOMB the power to impose the recommendation of the Government
23
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69. Therefore, FOMB cannot control the Commonwealth absent a specific authorization in
Title I or II. Nothing in Title III gives FOMB the power to control the Commonwealth’s political
or governmental operations.
70. PROMESA does not empower the FOMB to sweep the elected government aside.
PROMESA leaves the elected government in place and does not suspend it in favor of direct
71. Despite the fact that the Legislative Assembly approved a valid budget, consistent with the
fiscal plan, due to the Legislative Assembly’s disapproval of the bill repealing Law 80 in the way
and manner the FOMB wanted, FOMB refused to certify the Commonwealth's budget approved
by the Legislative Assembly, and retaliated against it by imposing punitive measures in reducing
the Legislative Assembly’s operational budget. It's important to highlight that the Legislative
Assembly's budget was lower than the FOMB's own approved budget. The FOMB's retaliation
and/or its officers or employees, which PROMESA does not allow, and in contravention to Puerto
Rico’s sovereignty.
72. The FOMB’s acts constitutes an usurpation of the Legislative Assembly’s exclusive
legislative power and, furthermore, an effort to supplant, bypass, or replace the Commonwealth's
elected leaders.
73. Therefore, FOMB has unlawfully encroached upon the Legislative Assembly’s exclusive
legislative power under the Puerto Rico Constitution, and in contravention of the limited powers
24
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74. The FOMB’s retaliation and punitive measures against the Legislative Assembly,
including the delegated power to the People of Puerto Rico of self-government are null, void and/or
unconstitutional.
75. The Constitution of Puerto Rico, as approved by Congress, provides in its foreword that
the democratic system is fundamental for the life of the Puerto Rican community. It is understood
that a democratic system is one in which the will of the people is the source of the political power,
where the political power is subordinate to the rights of men and women and where the free
V. COUNT I
76. Plaintiffs repeat and incorporate by reference the previous allegations as if fully set forth
herein.
77. PROMESA does not allow the FOMB to bypass or usurp the Legislative Assembly’s
legislative power, and set forth the Commonwealth’s public policy behind legislation affecting the
78. The FOMB exceeded its authority when it tried to force the Legislative Assembly to pass
a bill retroactively repealing Law 80 as a condition to approve the Commonwealth’s budget. When
the Legislative Assembly refused to abdicate its legislative power, the FOMB punished it by
imposing severe cuts in its operational budget, and also imposed severe limitations on the
Government of Puerto Rico’s authority under PROMESA to govern on matters of public policy.
79. Plaintiffs are therefore entitled to a judicial declaration under 28 U.S.C. § 2201, as well as
further relief under 28 U.S.C. § 2202, that the rejected policy recommendations in the Fiscal Plan
25
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are non-binding recommendations, and that the Legislative Assembly cannot be compelled to
implement any of those policies, and the FOMB may not take any actions to force compliance with
such recommendations.
80. Moreover, by forcing the Legislative Assembly to advance the FOMB’s agenda, and
punishing the government by not approving the 2018-2019 Legislative Assembly Budget when its
coercive tactics failed, the FOMB exceeded its statutory authority under PROMESA.
81. Since the FOMB refused to certify the 2018-2019 Legislative Assembly Budget, and
imposed the 2018-2019 FOMB Budget by violating PROMESA in exceeding its authority,
plaintiffs are entitled to a judicial declaration that the 2018-2019 FOMB Budget is null and void,
and reinstating the 2018-2019 Legislative Assembly Budget duly approved by the Legislative
VI. COUNT II
82. Plaintiffs repeat and incorporate by reference the previous allegations as if fully set forth
herein.
83. As noted before, the FOMB submitted a draft bill to the Legislative Assembly which,
among other things, proposed repealing Law 80. This was a public policy recommendation under
§ 205(a) of PROMESA, and no way related to “achieve fiscal responsibility and access to the
capital markets.” See, PROMESA § 201(b)(1)(J). Notwithstanding the non-binding nature of this
recommendation, the Senate accommodated the FOMB’s recommendation, and approved Senate
Bill 1011. Unhappy with the Senate’s action, the FOMB threatened to cut the Legislative
Assembly’s budget, among other retaliatory measures, if it did not repeal Law 80 retroactively. As
26
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a result, the House of Representatives then approved another version of Senate Bill 1011, which
84. In Senate Bill 1011, the Legislative Assembly exercised its constitutional prerogative and
power to legislate, and balanced the need to promote new job creation and increase labor force
participation, as set forth in the April and May 2018 Fiscal Plans, with protecting the rights of
85. By repealing Law 80 prospectively, the Legislative Assembly accommodated the FOMB’s
employment jurisdiction which the FOMB touted, as the “single most important reform for long-
term economic well-being in Puerto Rico.” Senate Bill 1011 was also consistent with the April
2018 and May 2018 Fiscal Plans because repealing Law 80 had no economic or budgetary impact
86. However, the FOMB rejected Senate Bill 1011, and then unlawfully refused to certify the
Commonwealth budget approved by the Legislative Assembly for the sole reason it did not
approve a bill repealing Law 80 the way and manner the FOMB dictated. Moreover, the FOMB
87. Specifically, the FOMB reduced the Senate’s operational budget by $8,741,000 and the
88. The FOMB’s refusal to certify the 2018-2019 Legislative Assembly Budget, and
imposition of its own budget, the 2018-2019 FOMB Budget, all because the Legislative Assembly
did not approve the repeal of Law 80, are beyond the powers granted to it under PROMESA.
89. Plaintiffs therefore seek equitable relief in the form of an injunction prohibiting the
defendants from implementing and enforcing the 2018-2019 FOMB Budget, and reinstatement of
27
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the 2018-2019 Legislative Assembly Budget. Additionally, the plaintiffs request that, to the extent
they seek a preliminary injunction, such preliminary injunction against the defendants be converted
to a permanent injunction upon the Court’s determination of this matter on the merits.
90. The plaintiffs will likely succeed on the merits of their claims or, alternatively, have raised
sufficiently serious questions going to the merits. The FOMB clearly overreached when it refused
to certify the 2018-2019 Legislative Assembly Budget for the sole reason the Legislative Assembly
did not approve a bill retroactively repealing Law 80, a matter that, as explained before, falls under
§ 205 of PROMESA. Without the requested injunctions, moreover, plaintiffs would be irreparably
harmed because the implementation of the 2018-2019 FOMB Budget would prevent them from
freely exercising the legislative power conferred by the Puerto Rico Constitution.
91. Therefore, the plaintiffs are entitled to equitable relief in the form of an injunction
prohibiting the defendants from implementing and enforcing the 2018-2019 FOMB Budget and to
prevent the FOMB from exceeding its powers under PROMESA § 202 of PROMESA.
92. Plaintiffs are also entitled to equitable relief in the form of an injunction directing the
WHEREFORE the plaintiffs pray that judgment be entered for them and against
i. Declaring that the FOMB lacked the authority to demand that the Legislative Assembly
approve a bill repealing Law 80 as a condition for the approval of the Commonwealth’s
Budget;
ii. Declaring that, the rejected policy recommendations in the Fiscal Plan are non-binding
recommendations, and that the Legislative Assembly is not obligated to implement any of
28
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those policies, and the FOMB may not take any actions to force compliance with such
recommendations;
iii. Declaring that, by forcing the Legislative Assembly to advance its own agenda, and
punishing the government by not approving the 2018-2019 Legislative Assembly Budget
when its strong-arm tactics failed, the FOMB exceeded its statutory authority under
PROMESA;
iv. Declaring that, the 2018-2019 FOMB Budget is null and void, and
v. Declaring that the 2018-2019 Legislative Assembly Budget duly approved by the
Legislative Assembly and signed by the Governor of Puerto Rico shall be reinstated.
vi. Enjoining the defendants from implementing the FOMB’s 2018-2019 Budget;
vii. Ordering the defendants to certify the 2018-2019 Legislative Assembly Budget; and
viii. Granting such other and further relief as the Court deems just and proper.
29
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30
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Appendix PROMESA Cover Sheet Page 1 of 2
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Appendix PROMESA Cover Sheet Page 2 of 2
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Appendix Exhibit List Page 1 of 2
In re: PROMESA
Title III
THE FINANCIAL OVERSIGHT AND
MANAGEMENT BOARD FOR PUERTO RICO, No. 17 BK 3283-LTS
Debtors. 1
HON. THOMAS RIVERA-SCHATZ (in his official
capacity and on behalf of the Senate of Puerto Rico), and
HON. CARLOS J. MÉNDEZ-NÚÑEZ (in his official
capacity and on behalf of the House of Representatives
of Puerto Rico),
Plaintiffs,
Adv. Pro. No. 18- -LTS
v.
Defendants.
1
The Debtors in these Title III Cases, along with each Debtor’s respective Title III case number and the last four (4)
digits of each Debtor’s federal tax identification number, as applicable, are the (i) Commonwealth of Puerto Rico
(Bankruptcy Case No. 17 BK 3283-LTS) (Last Four Digits of Federal Tax ID: 3481); (ii) Puerto Rico Sales Tax
Financing Corporation (“COFINA”) (Bankruptcy Case No. 17 BK 3284-LTS) (Last Four Digits of Federal Tax
ID: 8474); (iii) Puerto Rico Highways and Transportation Authority (“HTA”) (Bankruptcy Case No. 17 BK 3567-
LTS) (Last Four Digits of Federal Tax ID: 3808); (iv) Employees Retirement System of the Government of the
Commonwealth of Puerto Rico (“ERS”) (Bankruptcy Case No. 17 BK 3566-LTS) (Last Four Digits of Federal
Tax ID: 9686); and (v) Puerto Rico Electric Power Authority (“PREPA”) (Bankruptcy Case No. 17 BK 4780-
LTS) (Last Four Digits of Federal Tax ID: 3747). (Title III case numbers are listed as Bankruptcy Case numbers
due to software limitations).
1
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Appendix Exhibit List Page 2 of 2
EXHIBIT LIST
2
Case:17-03283-LTS Doc#:3454-3 Filed:07/09/18 Entered:07/09/18 14:08:37 EXHIBIT
Desc: 1
Exhibit Page 1 of 14
[CERTIFIED TRANSLATION] I, Carlos Laó Dávila, a Federally certified interpreter, number 03-052,
hereby certify that the attached document is a
true and exact translation of the original certified or translated by me
A-77
GOVERNMENT OF PUERTO RICO
ACT
To limit the application of Act No. 80 of May 30, 1976, as amended, exclusively for the employees
tha hae said protections and guarantees at the time of passing the instant Act; for purposes of giving
compliance to those agreements reached by the Government and the Financial Oversight Board;
to protect the Christmas bonus of public and private employees; maintaining unaltered vacation
and sick leave the employee from the private sector has; reaffirm the public policy of the
Government of Puerto Rico on the permanency of all those labor rights established in the
Constitution of Puerto Rico and those applicable state and federal laws; provide what is relevant
to those exiting claims of unfair termination; and for other related purposes.
PRELIMINARY RECITALS
Currently, Puerto Rico is going through a historically unprecedented fiscal crisis. In part,
said crisis was caused by the absence of controls on spending, sustainable development measures,
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Exhibit Page 2 of 14
[CERTIFIED TRANSLATION] I, Carlos Laó Dávila, a Federally certified interpreter, number 03-052,
hereby certify that the attached document is a
true and exact translation of the original certified or translated by me
and management information systems that promote clarity and transparency in the governmental
endeavors.
This crisis has hit Puerto Rican families very hard and has caused that thousands of Puerto
Ricans abandon the Island seeking better opportunities. Thus, the population reduction that is
The erred policies of the past, together with the limitations of our territorial and colonial
status, lead the Congress of the United States to promulgate the Act called Puerto Rico Oversight,
Management, and Economic Stability Act, known as PROMESA, Pub. L. 114-187. Said Act
established a Financial Oversight and Administration Board (heron the “Oversight Board”) and
parameters for the fiscal planning actions, budgetary actions, and to restructure debts, among
others.
In February 28, 2017, the Governor filed a complete broad, real Fiscal Plan, which was
also sensitive to the needs of our People and of the most vulnerable. In March 13, 2017, the
Oversight Board accepted and certified our Fiscal Plan, which avoided the termination of public
employees and the exit of patients from the Government Health Program, among other social and
economic hardships.
For fiscal year 2017-2018, the Government filed and the Legislative Assembly passed a
responsible budget, which complied with the austerity policies necessary to tend to the fiscal crisis,
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Exhibit Page 3 of 14
[CERTIFIED TRANSLATION] I, Carlos Laó Dávila, a Federally certified interpreter, number 03-052,
hereby certify that the attached document is a
true and exact translation of the original certified or translated by me
while defending the most vulnerable, like our retirees, whose pensions where ensured in the
general budget. Notwithstanding, said budget was modified by the Oversight Board.
In September 2017, Puerto Rico experienced the force of two atmospheric events that
changed our daily life affecting all sectors of our society. The devastation caused by the impacts
of hurricane Irma and María has caused that the economic crisis that affects our Island worsens
even more and has brought greater fiscal challenges for municipalities and the central Government.
These atmospheric events affected the functioning of the Government and caused severe damages
to the infrastructure of the Island, including buildings, the power system, and telecommunications.
damages and it is projected will cause a real reduction in the NGP of 13.2% this fiscal year.
After the passing of the hurricanes, the Oversight Board requested from the Government a
new draft of the Fiscal Plan that would take into consideration the new reality in Puerto Rico after
the devastation of the atmospheric event. In January 24, 2018, the Government delivered the
Revised Fiscal Plan with the goal of having it evaluated and certified by the Oversight Board in
Although the Revised Fiscal Plan reflected the reality of Puerto Rico after the passing and
included a real and fair basis to reach fiscal balance, the management of the debt, and the
revitalization of the economy in Puerto Rico, in February 5, 2018, the Oversight Board rejected
the document. Although the Oversight Board acknowledged that the Fiscal Plan proposed by the
Government included important and necessary proposals to move Puerto Rico toward fiscal
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Exhibit Page 4 of 14
[CERTIFIED TRANSLATION] I, Carlos Laó Dávila, a Federally certified interpreter, number 03-052,
hereby certify that the attached document is a
true and exact translation of the original certified or translated by me
sustainability and growth, the entity created by PROMESA requested changes that would affect
the most vulnerable, as well as reduce the pensions of our retirees, eliminate the Christmas bonus
of public and private employees, and reduce vacation and sick leave days in the private sector.
That same day, the Governor and the Legislative Assembly opposed said changes, because
they would irremediable affect the People. These changes caused the uncertainty of our people
when recognizing that these changes established by the Oversight Board would be reflected in
budgetary cuts and/or would end up in courts at the mercy of the determination of a Federal Court.
In April 19, 2018, the Oversight Board certified their own fiscal plan including these
With the passing of this Act, we ensure the continuity of the Christmas Bonus for public
and private employees, we protect the labor rights of workers while an environment is created that
encourages the creation of more jobs. With this bill, the causes for termination of employment will
be those that arise from prospectively from the employment contract, including the collective
bargaining agreement contracts negotiated by unions, as it occurs in virtually all the jurisdictions
of the Nation.
Notwithstanding, the aforementioned does not alter the prohibition for illegal terminations.
Employees will continue being protected from discriminatory terminations, violations of the terms
of the collective bargaining agreements, harassment, and protections against retaliation, among
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[CERTIFIED TRANSLATION] I, Carlos Laó Dávila, a Federally certified interpreter, number 03-052,
hereby certify that the attached document is a
true and exact translation of the original certified or translated by me
others. In addition, minimum wage and the Christmas bonus will remain unaltered, and also other
Other laws that protect our workers will not be affected, such as: Act No. 100 of June 30,
1959, as amended that protect employees against discrimination due to race, color, gender, sexual
orientation, gender identity, social or national origin, social condition, political affiliation, or
political or religious ideas, or due to being a victim or perceived as a victim of domestic violence,
sexual aggression or stalking, or due to being military, or ex-military, serve or having served in
the United States Armed Forces, or due to being a veteran; Act No. 379 of May 15, 1948, as
amended, which provides for the rest day from the work schedule; Act 180-1998, as amended, on
Minimum Wage, Vacation and Sick leave; Act No. 148 of June 30, 1969, which grants private
employees the Christmas Bonus; Act 427-2000 that provides for the breastfeeding period and
protects the rights of breastfeeding mothers; Act No. 45 of April 18, 1935, as amended, which
provides for the Compensation for Accidents at Work; Act No. 139 of June 26, 1968, which
provides for Temporary Disability Benefits; Act 16-2017 Equal Salary; Act No. 3 of March 13,
1942, as amended, which protects Worker Mothers; Act No. 17 of April 22, 1988, as amended,
which prohibits Sexual Harassment; Act 24-2002 which establishes a Sports Leave; Act 27-2005
on Nursing Minimum Wage; Act No. 44 of July 2, 1985, as amended, which prohibits
discrimination against Disabled Persons; Act No. 69 of July 6, 1985, as amended, which protects
against discrimination due to Gender; Act No. 112 of July 13, 1985, as amended, which regulates
the contracting of minors; Act 115-1991, which protects an employee against retaliation from the
employer; Act No. 122 of July 12, 1986, as amended, which protects employees called to serve as
witnesses; Act 161-2002, for Job Development; Act No. 230 of May 12, 1942, as amended, which
provides regulation for the employment of minors; Act No. 130 of May 8, 1945, as amended,
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Exhibit Page 6 of 14
[CERTIFIED TRANSLATION] I, Carlos Laó Dávila, a Federally certified interpreter, number 03-052,
hereby certify that the attached document is a
true and exact translation of the original certified or translated by me
which recognizes the rights of employees to organize; Act 281-2003, which protects employees
called to serve as jurors, among other laws and regulations that protect our workers.
No other local or federal law or regulation that protects the rights of employees will be
affected.
Article 1.- Act No. 80 of May 30, 1976, as amended, will remain in effect in order to protect
all employees and employers that, at the time this Act passes, are protected by all its provisions.
All natural person or legal entity that can claim rights or remedies under this Article, will maintain
those unaltered.
Beginning on the passing of the instant Law, all new hire employee and all employer who
hires new employees will not be subject to the provisions of Act 80 form May 30, 1976, as
amended. Notwithstanding, any employee who is terminated from their job will continue being
protected by all the other causes of action that arise from the Constitution of the United States, the
Constitution of Puerto Rico, and the applicable state or federal laws and regulations.
For purposes of this Article the term “employee” will mean all natural persons who works
for an employer and receives compensation for services. It does not include independent
contractors and government or municipal employees. The term “employer” means any natural
person or legal entity who employees or allows any employee to work through compensation. It
does not include the Government of Puerto Rico, its three branches, its departments, agencies,
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Exhibit Page 7 of 14
[CERTIFIED TRANSLATION] I, Carlos Laó Dávila, a Federally certified interpreter, number 03-052,
hereby certify that the attached document is a
true and exact translation of the original certified or translated by me
municipal corporations.
With this Act the Legislative Assembly is only eliminating the cause of action for unfair
termination prospectively. Thus, we reaffirm the unaltered application of those labor rights
established and legislated prior to this Act. No employer can not comply with any of these labor
The provisions of this Act and its effect will not apply to those persons whose job has
terminated prior to said Act being in effect. The provisions of Act No. 80 of May 30, 1976, as
amended, and the statute of limitations in it provided, will continue applying to all unfair separation
from employment carried out prior to this Act being in effect. Therefore, no employer can use the
application of the instant Act as subterfuge, with the goal of affecting acquired rights of employees
protected by Act 80, supra, prior to instant Act being in effect. The courts will be obligated to
apply the provisions of Act No. 80, supra, in all pending proceedings and the causes of action that
A-77
GOBIERNO DE PUERTO RICO
P. del S. 1011
29 de mayo de 2018
Presentado por los señores Rivera Schatz, Seilhamer Rodríguez, Ríos Santiago, Martínez
Santiago, Berdiel River, Correa River,; Cruz Santiago; la señora Laboy Alvarado; los señores
Laureano Correa, Muñiz Cortés, Nazario Quiñones, Neumann Zayas; las señoras Nolasco
Santiago, Padilla Alvelo, Peña Ramírez; los señores Pérez Rosa, Rodríguez Mateo, Romero
Lugo, Roque Gracia; las señoras Vázquez Nieves y Venegas Brown
Referido a la Comisión de Relaciones Federales, Políticas y Económicas
LEY
EXPOSICIÓN DE MOTIVOS
Al presente, Puerto Rico atraviesa una crisis fiscal sin precedentes históricos. En
parte, dicha crisis fue causada por la ausencia de controles sobre el gasto, medidas de
desarrollo sustentable y sistemas de información gerencial que promuevan claridad y
transparencia en la gestión gubernamental.
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Exhibit Page 9 of 14
2
Las políticas erradas del pasado, junto a las limitaciones de nuestro estatus
territorial y colonial, llevaron al Congreso de los Estados Unidos a promulgar la ley
denominada Puerto Rico Oversight, Management, and Economic Stability Act, conocida
como PROMESA (por sus siglas en inglés), Pub. L. 114-187. Dicha Ley estableció una
Junta de Supervisión y Administración Financiera (en adelante “Junta de Supervisión”)
y parámetros para las acciones de planificación fiscal, las acciones presupuestarias, y
para las reestructuraciones de deuda, entre otras.
A pesar de que el Plan Fiscal Revisado reflejaba la realidad de Puerto Rico con
posterioridad al paso de los huracanes e incluía una base real y justa para alcanzar el
balance fiscal, el manejo de la deuda y la revitalización de la economía de Puerto Rico,
el 5 de febrero de 2018, la Junta de Supervisión rechazó el documento. Aunque la Junta
de Supervisión reconoció que el Plan Fiscal propuesto por el Gobierno incluyó
propuestas importantes y necesarias para mover a Puerto Rico hacia la sostenibilidad
fiscal y el crecimiento, el ente creado por PROMESA solicitó cambios que afectarían a
los más vulnerables, como reducir las pensiones de nuestros retirados, eliminar el bono
de navidad de los empleados públicos y privados y reducir los días de vacaciones y
enfermedad en el sector privado.
No se afectarán otras leyes que protegen a nuestros trabajadores como: Ley Núm.
100 de 30 de junio de 1959, según enmendada, que protege a los empleados contra el
discrimen por razón de raza, color, sexo, orientación sexual, identidad de género, origen
social o nacional, condición social, afiliación política, o ideas políticas o religiosas, o por
ser víctima o ser percibida como víctima de violencia doméstica, agresión sexual o
acecho, o por ser militar, ex militar, servir o haber servido en las Fuerzas Armadas de
los Estados Unidos o por ostentar la condición de veterano; la Ley Núm. 379 de 15 de
mayo de 1948, según enmendada, que dispone sobre la Jornada de Trabajo; la Ley Núm.
289 de 9 de abril de 1946, según enmendada, que dispone sobre el día de descanso de
jornada; la Ley 180-1998, según enmendada, de Salario Mínimo, Vacaciones y
Enfermedad; la Ley Núm. 148 del 30 de junio de 1969, que otorga a los empleados
privados el Bono de Navidad; la Ley 427-2000 que dispone el período de lactancia y
protege los derechos de las madres lactantes; la Ley Núm. 74 de 21 de junio de 1956,
según enmendada, Ley de Seguridad en el Empleo; la Ley Núm. 45 de 18 de abril de
1935, según enmendada, que provee para la Compensación por Accidentes del Trabajo;
la Ley Núm. 139 de 26 de junio de 1968, que dispone Beneficios por Incapacidad
Temporal; la Ley 16-2017 de Igualdad Salarial; la Ley Núm. 3 de 13 de marzo de 1942,
según enmendada, que protege a las Madres Obreras; la Ley Núm. 17 de 22 de abril de
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5
1988, según enmendada, que prohíbe el Hostigamiento Sexual; la Ley 24 -2002 que
establece una Licencia Deportiva; la Ley 27-2005 sobre Salario Mínimo de Enfermería; la
Ley Núm. 44 de 2 de julio de 1985, según enmendada, que prohíbe el discrimen contra
Personas Impedidas; la Ley Núm. 69 de 6 de julio de 1985, según enmendada, que
protege contra el discrimen por Razón de Sexo; la Ley Núm. 112 de 13 de julio de 1985,
según enmendada, que regula la contratación de menores; la Ley 115-1991, que protege
al empleado contra las represalias por parte de su patrono; la Ley Núm. 122 de 12 de
julio de 1986, según enmendada, que protege a empleados llamados a servir como
testigos; Ley 161-2002, para el Fomento de Empleos; Ley Núm. 230 de 12 de mayo de
1942, según enmendada que dispone regulación para el empleo de menores; la Ley
Núm. 130 de 8 de mayo de 1945, según enmendada, que reconoce los derechos de los
empleados a organizarse; la Ley 281-2003, que protege a los empleados llamados a
servir como jurado, entre otras leyes y regulaciones que protegen a nuestro trabajador.
Tampoco se afectará ninguna otra ley o regulación, local o federal, que protejan
los derechos de los empleados.
2 permanecerá vigente a los fines de proteger a todos los empleados y los patronos que, al
3 momento de la aprobación de esta Ley, están protegidos por todas sus disposiciones.
4 Toda persona natural o jurídica que pueda reclamar derechos o remedios al amparo de
8 reclutamiento y todo patrono que reclute a nuevos empleados no estarán sujetos a las
1 empleado despedido de su empleo continuará protegido por todas las demás causas de
5 natural que trabaje para un patrono y que reciba compensación por sus servicios. No
16 anterioridad a esta Ley. Ningún patrono podrá incumplir con ninguno de estos
1 injustificada de empleo realizada previo a la vigencia de esta Ley. Por tanto, ningún
2 patrono podrá utilizar como subterfugio la aplicación de la presente Ley, con el fin de
3 afectar derechos adquiridos por los empleados cobijados por la Ley 80, supra, previo a la
4 vigencia de la presente Ley. Los tribunales vendrán obligados a aplicar las disposiciones
5 de la Ley Núm. 80, supra, en todo procedimiento pendiente y a las causas de acción que
7 Artículo 5.-Vigencia.
Members
Andrew G. Biggs
Carlos M. García
Arthur J. González
José R. González
Ana J. Matosantos
David A. Skeel, Jr.
José B. Carrión III
Chair
Natalie A. Jaresko
Executive Director
BY ELECTRONIC MAIL
June 4, 2018
The Oversight Board is in receipt of a written request to state what would be the effect on the
Fiscal Plan and Budget for the Commonwealth should the Government of Puerto Rico not comply
exactly with the understanding reached with the Oversight Board concerning the repeal of Law 80.
To answer your question directly, at a minimum, the Oversight Board would revert to the Fiscal
Plan as certified by the Oversight Board on April 19, 2018 (the “April 19 Fiscal Plan”), and would
submit a budget to the Governor and Legislature that is consistent with that Fiscal Plan.
Specifically, if the Government of Puerto Rico fails to comply exactly with the understanding
reached with the Oversight Board concerning the repeal of Law 80, the Oversight Board will
amend the Fiscal Plan and Budget to:
Eliminate the annual appropriation for the Christmas bonus for public sector employees
Eliminate the annual appropriation of $25 million for student scholarships at the University
of Puerto Rico
Eliminate the annual appropriation of $50 million for economic development initiatives for
municipalities
Eliminate the multiyear fund of $345 million for various economic development and
reform implementation initiatives as requested by the Government of Puerto Rico
Maintain the elimination of the Christmas bonus for both public sector and private sector
employees as well as the reduction in sick days and paid leave for private sector employees,
as required by the labor reform outlined in the April 19 Fiscal Plan to facilitate investment
and job creation in Puerto Rico
Maintain the cuts to the budgets of the Legislature and Judiciary as outlined in the April
19 Fiscal Plan
Nevertheless, the reduced funding for municipalities, the University of Puerto Rico, and economic
growth, as well as the elimination of Christmas bonuses, would just be the immediate next step.
That is because Puerto Rico currently enjoys a respite from paying its debt service due to the Title
III automatic stay and the expectation that we will restructure our debts on a timely basis.
However, the automatic stay is temporary, not permanent, and Puerto Rico must demonstrate that
it is taking the necessary steps to make a fair and sustainable debt restructuring possible while it
benefits from the automatic stay. The most critical step at this juncture is repealing Law 80, so
that Puerto Rico can enjoy a growing economy with a stronger tax base for the benefit of the
Commonwealth’s people, businesses, and creditors. Failure to do so will lead to an untenable
situation – continued economic decline, a shrinking tax base, and no realistic path to a debt
restructuring to put Title III behind us. Please refer to Exhibit 21 of the Fiscal Plan certified on
May 30, 2018 to see the macroeconomic impact of failing to adopt labor reform.
The understanding reached with the Oversight Board concerning the repeal of Law 80 for all
employees, present and future, will assist the Oversight Board and Government of Puerto Rico in
effectively implementing the Fiscal Plan without having to waste time and resources on costly
litigation regarding the implementation and enforcement of certain fiscal and economic initiatives
as required by PROMESA.
We trust that this letter adequately answers your question but if not, please do not hesitate to
contact us for further information or clarification.
Sincerely,
Natalie A. Jaresko
Andrew G. Biggs
José B. Carrión
Carlos M. García
Arthur J. González
José R. González
Ana J. Matosantos
David A. Skeel, Jr.
ELECTRONIC DRAFT
APPROVED TEXT IN FINAL VOT BY THE SENATE
(MAY 30, 2018) [Illegible marking]
A-77
GOVERNMENT OF PUERTO RICO
ACT
To limit the application of Act No. 80 of May 30, 1976, as amended, exclusively for the employees that
have said protections and guarantees at the time of passing the instant Act; for purposes of giving
compliance to those agreements reached by the Government and the Financial Oversight Board; to protect
the Christmas bonus of public and private employees; maintaining unaltered vacation and sick leave the
employee from the private sector has; reaffirm the public policy of the Government of Puerto Rico on the
permanency of all those labor rights established in the Constitution of Puerto Rico and those applicable
state and federal laws; provide what is relevant to those exiting claims of unfair termination; and for other
related purposes.
PRELIMINARY RECITALS
Currently, Puerto Rico is going through a historically unprecedented fiscal crisis. In part, said crisis
was caused by the absence of controls on spending, sustainable development measures, and management
information systems that promote clarity and transparency in the governmental endeavors.
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Exhibit Page 2 of 30
2
This crisis has hit Puerto Rican families very hard and has caused that thousands of Puerto Ricans
abandon the Island seeking better opportunities. Thus, the population reduction that is consequence of this
The erred policies of the past, together with the limitations of our territorial and colonial status,
lead the Congress of the United States to promulgate the Act called Puerto Rico Oversight, Management,
and Economic Stability Act, known as PROMESA, Pub. L. 114-187. Said Act established a Financial
[Illegible
markings]
Oversight and Administration Board (heron the “Oversight Board”) and parameters for the fiscal planning
In February 28, 2017, the Governor filed a complete broad, real Fiscal Plan, which was also
sensitive to the needs of our People and of the most vulnerable. In March 13, 2017, the Oversight Board
accepted and certified our Fiscal Plan, which avoided the termination of public employees and the exit of
patients from the Government Health Program, among other social and economic hardships.
For fiscal year 2017-2018, the Government filed and the Legislative Assembly passed a responsible
budget, which complied with the austerity policies necessary to tend to the fiscal crisis, while defending the
most vulnerable, like our retirees, whose pensions where ensured in the general budget. Notwithstanding,
In September 2017, Puerto Rico experienced the force of two atmospheric events that changed our
daily life affecting all sectors of our society. The devastation caused by the impacts of hurricane Irma and
María has caused that the economic crisis that affects our Island worsens even more and has brought greater
fiscal challenges for municipalities and the central Government. These atmospheric events affected the
functioning of the Government and caused severe damages to the infrastructure of the Island, including
buildings, the power system, and telecommunications. According to current estimates, hurricane María
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3
caused approximately $100,000 billion in damages and it is projected will cause a real reduction in the NGP
After the passing of the hurricanes, the Oversight Board requested from the Government a new
draft of the Fiscal Plan that would take into consideration the new reality in Puerto Rico after the devastation
of the atmospheric event. In January 24, 2018, the Government delivered the Revised Fiscal Plan with the
goal of having it evaluated and certified by the Oversight Board in order to reestablish economic feasibility
in Puerto Rico.
[Illegible
markings]
Although the Revised Fiscal Plan reflected the reality of Puerto Rico after the passing and included
a real and fair basis to reach fiscal balance, the management of the debt, and the revitalization of the
economy in Puerto Rico, in February 5, 2018, the Oversight Board rejected the document. Although the
Oversight Board acknowledged that the Fiscal Plan proposed by the Government included important and
necessary proposals to move Puerto Rico toward fiscal sustainability and growth, the entity created by
PROMESA requested changes that would affect the most vulnerable, as well as reduce the pensions of our
retirees, eliminate the Christmas bonus of public and private employees, and reduce vacation and sick leave
That same day, the Governor and the Legislative Assembly opposed said changes, because they
would irrebocably affect the People. These changes caused the uncertainty of our people when recognizing
that these changes established by the Oversight Board would be reflected in budgetary cuts and/or would
In April 19, 2018, the Oversight Board certified their own fiscal plan including these measures
With the passing of this Act, we ensure the continuity of the Christmas Bonus for public and private
employees, we protect the labor rights of workers while an environment is created that encourages the
creation of more jobs. With this bill, the causes for termination of employment will be those that arise from
prospectively from the employment contract, including the collective bargaining agreement contracts
Notwithstanding, the aforementioned does not alter the prohibition for illegal terminations.
Employees will continue being protected from discriminatory terminations, violations of the terms of the
collective bargaining agreements, harassment, and protections against retaliation, among others. In
addition, minimum wage and the Christmas bonus will remain unaltered, and also other special laws that
Other laws that protect our workers will not be affected, such as: Act No. 100 of June 30, 1959, as
amended that protect employees against discrimination due to race, color, gender, sexual orientation, gender
identity, social or national origin, social condition, political affiliation, or political or religious ideas, or due
to being a victim or perceived as a victim of domestic violence, sexual aggression or stalking, or due to
being military, or ex-military, serve or having served in the United States Armed Forces, or due to being a
veteran; Act No. 379 of May 15, 1948, as amended, which provides for the rest day from the work schedule;
Act 180-1998, as amended, on Minimum Wage, Vacation and Sick leave; Act No. 148 of June 30, 1969,
[Illegible which grants private employees the Christmas Bonus; Act 427-2000 that provides for the breastfeeding
markings]
period and protects the rights of breastfeeding mothers; Act No. 45 of April 18, 1935, as amended, which
provides for the Compensation for Accidents at Work; Act No. 139 of June 26, 1968, which provides for
Temporary Disability Benefits; Act 16-2017 Equal Salary; Act No. 3 of March 13, 1942, as amended, which
protects Worker Mothers; Act No. 17 of April 22, 1988, as amended, which prohibits Sexual Harassment;
Act 24-2002 which establishes a Sports Leave; Act 27-2005 on Nursing Minimum Wage; Act No. 44 of
July 2, 1985, as amended, which prohibits discrimination against Disabled Persons; Act No. 69 of July 6,
1985, as amended, which protects against discrimination due to Gender; Act No. 112 of July 13, 1985, as
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Exhibit Page 5 of 30
5
amended, which regulates the contracting of minors; Act 115-1991, which protects an employee against
retaliation from the employer; Act No. 122 of July 12, 1986, as amended, which protects employees called
to serve as witnesses; Act 161-2002, for Job Development; Act No. 230 of May 12, 1942, as amended,
which provides regulation for the employment of minors; Act No. 130 of May 8, 1945, as amended, which
recognizes the rights of employees to organize; Act 281-2003, which protects employees called to serve as
jurors, among other laws and regulations that protect our workers.
No other local or federal law or regulation that protects the rights of employees will be affected. In
addition, a fund is created to compensate the employee affected by the modifications contained in this Act
[Illegible
markings]
to turn Puerto Rico in an at will jurisdiction as 49 of the 50 states of the Nation.
Article 1.- Act No. 80 of May 30, 1976, as amended, will remain in effect in order to protect all the
employees and employers that, at the time this Act passes, will be protected by all their provisions. Any
natural person or legal entity that can claim rights or remedies under this Article, will maintain those rights
unaltered.
Article 1.-Title
This Act will be known and can be cited as “Compensation Fund for Unfair Termination and
Article 2. New status of the Law. New status of the Law and Declaration on Public Policy
Public Policy.
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6
It is the public policy of the Government of Puerto Rico to strengthen the private sector of our
economy and encourage its maximum development. To achieve these purposes, we need to
increase capital investment in our industries, encourage the development of a vigorous service
industry, and a vibrant exchange of assets. In addition, we need to encourage the creation of well
remunerated jobs and that the total amount of work positions available is increased in the private
sector. All of the above, together with a state public policy directed to encourage entrepreneurship,
and the creation of business opportunities will allow Puerto Rico to insert itself with good footing
in the modernity of the XXI Century. To achieve this, we need to restate how employment contracts
are terminated in our archipelago and to achieve a government assistance so that those who lose
their job will have a real second opportunity to develop their talents and abilities, while they
achieve the support their families need, as well as the development of personal capital. The specific
objective of this Act is an will be to promote a mechanism of social justice and economic
development that, at the same time, will allow the reinvestment of our resources in the workforce.
We reaffirm the unaltered application of all those labor rights established and legislated prior to
this Act. No employer can not comply with the labor rights that we reaffirm today, pursuant to
This Act is also passed to ensure the allocation of twenty-five million dollars
($25,000,000.00) for scholarships for students of the University of Puerto Rico, the allocation of
[Illegible fifty million dollars ($50,000,000.00) annually for economic development of municipalities, as
markings]
multiannual fund of five (5) years duration, which amount includes one hundred million dollars
($100,000,000.00) of the Compensation Fund created by this Act, for several bills on economic
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7
development and for the implementation of reforms as requested by the Government of Puerto
Beginning on January 1, 2019 the passing of the instant Act, an employee in an indefinite
term will not have a cause of action against their employer merely because the employer
terminates the employment relationship, beyond the assistance contained in this Act and its
exceptions for the applicable period any new hire employee and all employers who hire new
employees are not subject to the provisions of Act 80 of May 30, 1976, as amended.
Notwithstanding, any employee terminated from his job will continue protected by all the other
causes of action that arise from the Constitution of the United States, the Constitution of Puerto
[Illegible For purposes of this Article the term “employee” means any natural person who works for
markings]
an employer and who receives compensation for their services. It does not include an independent
contractor, and also government or municipal employees. The term “employer” means any natural
person or legal entity who employs or allows to work any employees through compensation. It
does not include the Government of Puerto Rico, its three branches, its departments, agencies,
municipal corporations.
With this Act, the Legislative Assembly is solely eliminating the cause of action against the
employer for unfair termination under Act No. 80, supra. Thus, we reaffirm the unaltered
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8
application of all those labor rights established and legislated prior to this Act. No employer can
not comply with any of these labor rights that we reaffirm today.
With this Act, the Legislative Assembly is solely eliminating the cause of action for unfair
termination prospectively. Thus, we reaffirm the unaltered application of all those labor rights
established and legislated prior to this Act. No employer can not comply with any of these labor
The provisions of this Act and its effects will not be applied to those persons whose job
has terminated prior to effect of this Act. The provisions of Act No. 80 of May 30, 1976, as
amended, and the statute of limitations therein provided, will continue being the application of all
unfair separation from employment carried out prior to the effect of this Act. Thus, no employer
can use the application of the instant Act as subterfuge, with the purpose of affecting the acquired
rights of employees protected by Act 80, supra, prior to the effect of the instant Act. The courts
will be obligated to apply the provisions of Act No. 80, supra, in all the proceedings pending and
[Illegible
markings]
The “Compensation Fund for Unfair Termination and Reinsertion to the Work
($100,000,000.00). This Compensation Fund will be funded from special allocations from the
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9
Government of Puerto Rico, as provided below, for the workers terminated by the employer at will
or by one of the caused detailed below. The Compensation Fund will be available for those persons
whose employment has ended in or before January 1, 2021 if the employee has been 15 years or
less in the job from which he is terminated. Regarding employees who have more than 15 years at
the job from which they have been terminated, what is provided in Article 12 of this Act will apply.
The Government will allocate in the budget corresponding to fiscal year 2018-2019 an
amount of twenty million dollars ($25,000,000.00) for the Compensation Fund. The remaining
amount of up to sevent- five million dollars ($75,000,000.00) will be made through additional
allocations to be consigned in the budget of the Government of Puerto Rico for fiscal years 2019-
[Illegible
markings]
The Compensation Fund will be a transitory measure and will begin on January 1, 2019
and end on January 1, 2021. This money will be redistributed among the reinvestment amounts in
economic development and infrastructure included in the Amended Fiscal Plan of May 30, 2018.
Article 5. Management and composition of the Compensation Fund for Unfair Termination
The Compensation Fund will be managed by the Human Resources and Labor Department,
pursuant to the provisions of this Act and the regulations adopted for said purpose.
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The disbursements allowed on the Compensation Fund will begin to occur beginning on
January 1, 2019 for employees terminated with less than fifteen (15) years counted consecutively
a) Provide direct compensation to the terminated worker and their family, for a maximum
total of five thousand dollars ($5,000.00) notwithstanding any other right or benefit
b) Provide a voucher or tax credit, or a combination of these, of four thousand five hundred
dollars ($4,500.00) to the contracting employer to subsidize their salary in the first year of
a new job, and thus strengthen and accelerate their efforts to search for a job.
[Illegible
markings]
The payments from the Compensation Fund provided by this Act will be made up to a maxim
total of five thousand dollars ($5,000.00) per person, and will be done monthly by the Human
Resources and Labor Department, these being equal to the compensation per hour worked
immediately prior to the termination and while the worker remains unemployed. The voucher or
credit stated above shall be delivered by the Human Resources and Labor Department to the
displaced worker eligible and protected by this Act no later than twenty (20) calendar days,
counted from the date in which he complies with the submittal of the certifications provided in this
Act. Said voucher or credit will be delivered by the employee to his new employer when beginning
Notwithstanding the aforementioned, only one compensation can be claimed per person for
the duration period of the instant Act, be it the direct compensation to the terminated employee or
for the subsidy of his salary in the first year of the new job.
To be able to be eligible for the Compensation Fund assistance, the employee shall must
have an eligible job with a date prior to the passing of this Act and having been terminated during
the period of effectiveness of the Compensation Fund under the cases numbered in Article 10 of
this Act.
[Illegible
markings]
Article 9. Rights of the Employee
The provisions of this Act in nothing will impede, or can be interpreted in the sense of impeding
that each worker can request the benefits of any other law, state or federal, or impede the filing of
This Act will not impede that any person can receive social and economic assistance benefits by
For purposes of the Compensation Fund of this Act, a worker can benefit from it: (1) is the
termination occurs by the exclusive will of the employer without there being fault from the worker;
the product that is produced or managed by the establishment and the changes in
earnings volume anticipated or that prevail when the termination occurs or with
[Illegible
Article 11.- Obligation of the employers and criminal sanctions.
markings]
Each employer will have the obligation to cooperate with the Labor Department to put in effect
the provisions of the instant act and any applicable regulations. If there is a non-compliance of
this obligation, the employer will have to reimburse any expense incurred charged to the
Compensation Fund.
Each employer will have the obligation to reimburse the Compensation Fund the following
portion of each voucher that is obtained as a product of a previously displaced worker contracted
by an employer who received the worker according to the employment times, if the employer
The Human Resources and Labor Department will establish through regulation the proceeding
Any employer or employee who, on purpose, attempts to defraud or commits fraud to benefit
in bad faith of the provisions of this Act will incur in a misdemeanor and if convicted will have to
make restitution in four (4) times the amount disbursed by the Government. In case of the
employers, this provision will apply even if a associated entity is used or any corporate subterfuge
whose employment has terminated in or prior to June 30, 2021 if the employee has 15 years or
more in the job form which he is terminated, consecutively with the same employer. Only in these
cases, the provisions of Act No. 80 from May 30, 1976, as amended, and the statute of limitations
therein provided, will continue being applicable to all unjustified separations in those
circumstances and terms. Therefore, no employer can use the application of the instant Act as
subterfuge, with the goal of affecting the employees protected by Act No. 80, supra, pursuant to
this article. The courts and administrative forums will be obligated to apply the provisions of Act
No. 80, supra, in all the proceedings pending and the causes of action that are presented in the
The Human Resources and Labor Department will establish through regulations the
administrative norms that are deemed necessary in order to comply with the purposes of this Act,
in a term no greater than thirty (30) calendar days, counted from the passing of this Act. The
Treasury Department will issue the administrative norms necessary to comply with the purposes
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of this Act, in a term no greater than thirty (30) days, counted beginning on the approval of this
Act.
None of the norms or regulations passed due to the instant Act will have to comply with the
provisions of Act 38-2017, known as the “Uniform Administrative Proceedings Act of Puerto
Rico.”
This Special Fund cannot be used for the payment of any government obligation, its
[Illegible The Secretary of the Department of the Treasury is ordered to make the necessary deposits to
markings]
a. In the case of the initial deposit, it will be done in a period that will not exceed the thirty
b. In the case of the subsequent deposits, they will be made in a period that does not exceed
the thirty (30) natural days, counted from the moment the general budget of the fiscal year
When finalizing natural year 2020, any monies left of the Compensation Fund will be
distributed to the University of Puerto Rico to its scholarship program. Said remainder will have
opposite provisions. All the laws of the Government of Puerto Rico will have to be interpreted to
harmonize their sense, with the public policy that is established in the instant Act and with its
If any part of this Act is declared unconstitutional by a court with jurisdiction and competence,
none of the other parts of this Act not included in said declaration will be invalidated or declared
This Act will begin to govern immediately after its passing. Notwithstanding, all the provisions
of this Act will remain without effect if the Financial Oversight Board does not comply with
assigning in the next budgets the amounts agreed with the Government of Puerto Rico: the funds
for the payment of the Christmas Bonus of public employees; the twenty-five million dollars fund
($25,000,000.00) for scholarships for University of Puerto Rico students; the allocation of fifty
million dollars ($50,000,000.00) annually for the economic development of municipalities; and
the allocation of three hundred forty-five million dollars ($345,000,000.00) in a multiannual fund
BY ELECTRONIC MAIL
Dear Governor Rosselló Nevares, President Rivera Schatz, and Speaker Méndez Núñez:
The New Fiscal Plan for the Commonwealth of Puerto Rico, as certified on April 19, 2018 and
recertified on May 30, 2018 (the “New Fiscal Plan”), chartered a path forward for overcoming the
numerous and entrenched challenges that Puerto Rico has faced for decades, challenges that have
become all the more pressing in light of the devastation wrought by Hurricanes Maria and Irma.
The New Fiscal Plan provided a blueprint of the structural reforms and fiscal measures that, if
implemented, would give Puerto Ricans what they need and deserve – a growing economy with
more and better jobs, resilient infrastructure, and an effective and efficient public sector. Full
implementation also would have put Puerto Rico on the path to meeting the objectives laid out in
PROMESA: achieving fiscal responsibility and balance, regaining access to the capital markets,
and restoring economic opportunity for the Island.
Unfortunately, we now know that the Government of Puerto Rico will not implement the New
Fiscal Plan in full because the Legislature did not comply with the April 19, 2018 version of the
New Fiscal Plan or with the May 30, 2018 version of the New Fiscal Plan. The Legislature failed
to pass the most important component of the Labor Reform Package — the repeal of Law 80 and
turning Puerto Rico into an at-will employment jurisdiction — as required by the New Fiscal Plan.
Accordingly, the Oversight Board will follow through on the commitment that it made in its letter,
dated June 4, 2018, to Representative Jorge Navarro Suárez, who had asked the Oversight Board
what would happen if the Legislature did not comply with the New Fiscal Plan.
Today, June 29, 2018, the Oversight Board intends to certify a revised version of the New Fiscal
Plan to reflect the following changes relative to the April 19 and May 30, 2018 versions of the
New Fiscal Plan:
2) Revenue forecast: The revenue forecast for the General Fund, as submitted to the
Government on May 31, 2018, will be amended to $8,458M General Fund and $20,355M
consolidated.
3) Accommodation spending: Because Law 80 was not repealed, the accommodation agreed
to with the Government is reversed, which means eliminating: $345M in spending
categories across the fiscal plan period; the annual $50M municipal fund; the annual $25M
UPR scholarship fund; and the public-sector Christmas bonus across all government
employees starting in FY19.
4) Reinstating rightsizing: Right-sizing measures will be reinstated for the Legislature and the
Judiciary.
5) Focus on anti-corruption, anti-fraud, and transparency efforts: In line with the Governor’s
priorities, the Oversight Board will remove the right-sizing targets for the Office of the
Comptroller and the Office of Government Ethics, thus leaving the budgets for these two
offices unaltered from FY18.
6) Remove tax law initiatives: Because the Legislature did not pass by the end of the
legislation session the tax law initiatives described in the New Fiscal Plan, they will be
removed.
7) UPR independently-managed scholarship fund: As stated in the April 19, 2018 version of
the New Fiscal Plan, an independently managed UPR scholarship will be established and
funded from the right-sizing savings achieved from the Legislature, Judiciary, AAFAF,
and FOMB.
8) Adjustments based on lower FY19 budget submissions: The Governor’s budgets submitted
on June 1, 2018 and June 22, 2018 allocated less money to certain agencies than the New
Fiscal Plan had projected. For those agencies, the budget will be adjusted to match the
Governor’s submission.
9) Starting in FY19, include police under age 40 in the Social Security Program: As requested
by the Governor, we will be moving forward enrollment of police under the age of 40 in
Social Security beginning in FY19 instead of FY20, once necessary changes to their
pension programs have been implemented.
10) Technical adjustments based on new information: Various adjustments will be made to
align with new factual information from the Government or the federal government,
including information identified through working with the Government in the budget
submission process. Examples include insurance premium costs, rent expense, and Law
70 expenses.
1) PREPA: The New Fiscal Plan that the Oversight Board intends to certify on June 29, 2018
will have changes that have macroeconomic implications, which will need to be reflected
in a revised fiscal plan for PREPA. Because PREPA must have a budget certified before
July 1, 2018, and given that PREPA requires several days to run the macroeconomic
changes through its model before a new fiscal plan or budget can be created, the Oversight
Board intends to certify a FY19 budget for PREPA by June 30, 2018 that is compliant with
the fiscal plan for PREPA that was certified on April 19, 2018. The Oversight Board is
aware that the macroeconomics for the April 19, 2018 fiscal plan for PREPA will not be
aligned with those for the New Fiscal Plan that the Oversight Board intends to certify on
June 29, 2018. As soon as PREPA can generate a new fiscal plan and budget to reflect
these macroeconomic changes, but no later than July 12, 2018, the Oversight Board will
revise the fiscal plan and budget for PREPA to remedy this inconsistency. Accordingly,
the Oversight Board intends for the FY19 budget for PREPA that it certifies by June 30,
2018 to serve solely as an interim, operating budget, that will be applicable for no more
than the first two weeks of FY19.
2) PRASA: The New Fiscal Plan that the Oversight Board intends to certify on June 29, 2018
will have changes that have macroeconomic implications, which will need to be reflected
in a revised fiscal plan for PRASA. Because PRASA must have a budget certified before
July 1, 2018, and given that PRASA requires several days to run the macroeconomic
changes through its model before a new fiscal plan or budget can be created, the Oversight
Board intends to certify a FY19 budget for PRASA by June 30, 2018 that is compliant with
the fiscal plan for PRASA that was certified on April 19, 2018. The Oversight Board is
aware that the macroeconomics for the April 19, 2018 fiscal plan for PRASA will not be
aligned with those for the New Fiscal Plan that the Oversight Board intends to certify on
June 29, 2018. As soon as PRASA can generate a new fiscal plan and budget to reflect
these macroeconomic changes, but no later than July 12, 2018, the Oversight Board will
revise the fiscal plan and budget for PRASA to remedy this inconsistency. Accordingly,
the Oversight Board intends for the FY19 budget for PRASA that it certifies by June 30,
2018 to serve solely as an interim, operating budget, that will be applicable for no more
than the first two weeks of FY19.
Conclusion
We understand that the Legislature intends to submit its version of the budget for the
Commonwealth by June 30, 2018, as is its right under Commonwealth law. The Oversight Board
will review that budget for compliance against the New Fiscal Plan, as described in this letter,
which the Oversight Board intends to certify on June 29, 2018. Should the Oversight Board
determine, in its sole discretion, that the budget that the Legislature submits on June 30, 2018 is
not compliant with the New Fiscal Plan, as certified on June 29, 2018, the Oversight Board will
certify its own budget on June 30, 2018.
Sincerely,
Natalie A. Jaresko
José B. Carrión
Andrew G. Biggs
Carlos M. García
Arthur J. González
José R. González
Ana J. Matosantos
David A. Skeel, Jr.
______________________________
___ Bill
__ APRIL, 2017
Submitted by _______________________________________________
Referred to _____________________________
LAW
To enact the “Labor Reform Law of 2018”, in order to amend Article 2 of Law No. 180-
1998, as amended; repeal Law No. 148 of June 30, 1969, as amended; repeal any
mandatory decree approved before the effective date of this law; repeal Article 5;
amend Article 6(a) and renumber it as Article 5; renumber Article 7 as Article 6;
renumber Article 8 as Article 7; renumber Article 9 as Article 8; renumber Article
10 as Article 9; renumber Article 11 as Article 10; renumber Article 12 as Article
11; renumber Article 13 as Article 12 of Law No. 180-1998; repeal Law No. 80 of
May 30, 1976, as amended; amend Articles 2(a) and 2(b) of Law No. 115-1991, as
amended; and for other related purposes.
STATEMENT OF INTENT
By approving the Transformation and Flexibility Law, Law No. 4-2017, this
Administration acknowledged the urgent need to establish a clear and consistent public
policy, aimed at transforming Puerto Rico into an attractive jurisdiction to establish
businesses that create employment opportunities; to foster employment growth in the
private sector; and to move more individuals from the informal to the formal labor
market. In order to attain these objectives, we made a commitment to institute a series
of structural measures to improve existing labor rules. This new vision of flexible
employment regulations, as well as other measures, will allow businesses to grow and
prosper resulting in increased and improved employment opportunities for our
residents.
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The Statement of Intent of the Transformation and Flexibility Law describes the reasons
why changes in labor regulations are essential to transform Puerto Rico into a more
competitive and attractive jurisdiction in order to entice and retain the type of
investment that will create employment in our island.
By increasing the employment participation rate in Puerto Rico, the income of our
labor force will increase, poverty levels will decrease, and government revenues will
increase. Unless Puerto Rico’s employment participation rate is substantially increased,
the income of our people will always remain significantly below the income prevailing
in the continental states and Puerto Ricans will continue to seek employment elsewhere
and leave Puerto Rico.
On April 19, 2018, the Financial Oversight and Management Board for Puerto Rico,
created under the Puerto Rico Oversight, Management and Economic Stability Act of
2016 (“PROMESA”), certified a fiscal plan for the Government of Puerto Rico that
covers fiscal year 2018 through fiscal year 2023 (the “New Fiscal Plan”). An integral
component of the New Fiscal Plan is the adoption of certain reforms related to our labor
laws, the establishment of a local Earned Income Tax Credit (EITC), and the creation of
certain work requirements and work bonuses for the participants in the Nutritional
Assistance Program (PAN). The New Fiscal Plan projects that the adoption of the
certain reforms related to our labor laws would generate a positive impact of $330
million in additional revenues collected by the government over the period covered by
the New Fiscal Plan. Pursuant to the New Fiscal Plan, these projected revenue increases
are conditioned on the enactment of these certain labor law reforms no later than May
31, 2018. Consequently, the implementation of said labor law reforms shall have an
immediate impact on the economy’s growth, thus improving government finances and
the government’s ability to appropriate such funds for essential healthcare and higher
education programs.
After little over a year of the approval of the Transformation and Flexibility Law, a
review of the impact of said legislation shows the need to make deeper structural
measures in order to have our current regulatory system resemble the regulatory
system prevailing in the continental states.
The time has come to acknowledge that Puerto Rico’s competitiveness has been
undermined by the cumulative effect of decades of employment legislation that is
significantly different from the regulatory system prevailing in the continental states.
Improving our competitiveness and ability to attract and retain more and better jobs is
urgent for the island’s wellbeing.
On the other hand, it must be recognized that the labor regime applicable in the
continental states to the private sector has remained consistent on the principle that,
except for reasons prohibited by law, the hiring and employment tenure should not be
subject to government control through employment termination laws. The Employment-
At-Will system has been widely examined. Such system ensures that employment is
based on productivity and good conduct and prevents any undue government
intervention in critical business decisions.
The prevailing experience in the continental states clearly shows that the existence of
an “at will” employment rule does not produce employer conduct that is detrimental to
the wellbeing of the workers. However, the existence of legislation such as Law No. 80
of May 30, 1976, as amended, in fact increases the economic risks faced by the
employers for every dismissal decision taken. The evidence available fails to support
the conclusion that the repeal of Law No. 80 and the establishment of the regulatory
system prevailing in the states will result in a deterioration of local working conditions.
On the other hand, keeping Law No. 80 in effect will maintain Puerto Rico as a less
attractive jurisdiction, restrict employers in a very important aspect of the management
of their businesses and continue to reduce employment opportunities.
Consistent with the new labor policy that supports the Transformation and Flexibility
Law, these measures continue the process of adjusting some aspects of our employment
laws in order to stimulate economic growth and create more employment opportunities.
1 Chapter I. Title.-
2 Article 1.1- This Law shall be named “Labor Reform Law of 2018.”
5 follows:
6 “Article 2.-
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1 The federal minimum wage set by the Fair Labor Standards Act, approved
3 amended, shall automatically apply to the Puerto Rico workers covered by said
4 federal law.
5 Notwithstanding, effective January first of the year following the effective date of
6 the repeal of Law No. 148 of June 30, 1969, as amended, the employer covered by this law
7 shall pay any employee of twenty-five (25) years of age or more a minimum wage of no
8 less than seven dollars and fifty cents ($7.50) per hour, unless the applicable federal
9 minimum wage is higher or the employee is totally or partially exempt from the federal
11 Suject to the conditions and limitations of this Article, the minimum wage for the
12 covered employees shall increase to seven dollars and seventy five cents ($7.75 ) once the
13 labor participation rate in Puerto Rico exceeds forty five percent (45%); to eight dollars
14 ($8.00) once the labor participation rate in Puerto Rico exceeds fifty percent (50%); and
15 to eight dollars and twenty-five cents ($8.25) once the labor participation rate in Puerto
16 Rico exceeds fifty five percent (55%). For purposes of this Article, the annual
17 determination published by the U.S. Bureau of Labor Statistics shall be used to determine
18 the labor participation rate in Puerto Rico, and the increase of the minimum wage shall
21 120-2014, shall be subject only to the applicable federal minimum wage and not to the
1 When applying the federal minimum wage, the provisions of federal laws
2 and regulations in connection with the manner in which the minimum wage is
3 paid, the definition of working hours, employees and positions which are
4 exempt of the minimum wage, and the definition of hours or time worked shall
5 be adopted.
7 Article 3.1- Law No. 148 of June 30, 1969, as amended, is repealed effective
8 September 30, 2018. Notwithstanding, the rights, obligations and limitations provided
11 Article 4.1- Any mandatory decree approved before the effective date of this Law
12 is repealed.
14 Article 4.3- Article 6(a) and Article 5 of Law 180-1998, as amended, are amended
18 and sick leave by working at least one hundred and thirty (130) hours a month.
19 The minimum monthly accrual for vacation leave and sick leave shall be a
20 proportional amount of seven (7) days per year for each benefit. [it shall be half (1/2) a
21 day during the first year of service; three fourths (3/4) of a day after the first
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6
1 year of service until five (5) years of service; one (1) day after five (5) years of
2 service until fifteen (15) years of service; and one and one fourth (1 ¼) of a day
3 after completing fifteen (15) years of service. The monthly minimum accrual
6 Rico with an amount of employees not exceeding twelve (12), the minimum
7 monthly accrual for vacation leave shall be of half (1/2) a day per month. This
9 twelve (12) or less, and shall cease on the calendar year following the year in
10 which the employer’s payroll is in excess of twelve (12) for twenty-six (26) weeks
11 or more in each of two (2) consecutive calendar years. [The minimum monthly
12 accrual for sick leave for the employees of these employers shall be of one (1)
14 The use of vacation and sick leave shall be considered time worked for
2 Article 5.1- Law No. 80 of May 30, 1976, as amended, is repealed effective January 1,
3 2019. Notwithstanding, the rights, obligations and limitations under said law shall
4 continue to apply for dismissals occurring before the effective date of its repeal.
5 Article 5.2- The repeal of Law No. 80 of May 30, 1976, as amended, shall not affect
6 any rights to which the employee was entitled before the approval of this law; to obtain
7 a relief for damages from tortious actions by the employer unrelated to the mere
9 provided by special laws and those granted for a dismissal with the main purpose and
10 intent to violate clear public policy by the State or any applicable constitutional right of
11 the employee. By repealing Law No. 80 of May 30, 1976, as amended, a legal standard
15 Article 6.1- Articles 2(a) and 2(b) of Law No. 115-1991, as amended, are amended to
16 read as follows:
17 “Article 2. —
3 position of authority, alleging the employer violated any employment law, provided
4 such statements are not difamatory in nature and do not disclose privileged
6 (b) Any person alleging a violation of this law may file a civil action against the
7 employer within [three (3) years] one (1) year from the date in which the violation
9 anguish, reinstatement to the employment, back pay, benefits and attorneys’ fees.
10 [The employer’s liability in connection with the damages and the back pay
11 shall be double the amount awarded for the violation of the provisions of this
12 law.] The employer’s liability in connection with the violations of this law shall be
13 determined on the basis of the provisions of Articles 6.1 and 6.2 of Law No. 4-2017.
17 section, subsection, title, chapter, subchapter, heading or part of this law is annulled or
18 declared unconstitutional, the resolution, ruling or judgment issued to that effect shall
19 not affect, prejudice or invalidate the remaining parts of this law. The effect of such a
21 letter, article, provision, section, subsection, title, chapter, subchapter, heading or part of
2 provision, section, subsection, title, chapter, subchapter, heading or part of this law is
4 that effect shall not affect or invalidate the application of the remainder of this law to
5 those persons or circumstances to which it may be validly applied. It is the express and
6 unequivocal will of this Legislative Assembly that the courts enforce its provisions and
7 that this law be applied as widely as possible, even if some of its parts are declared
10 Legislative Assembly would have approved this law regardless of the severability
BY ELECTRONIC MAIL
Dear Governor Rosselló Nevares, Senator Rivera Schatz, and Speaker Méndez Núñez:
By this letter, pursuant to PROMESA § 202(a), the Financial Oversight and Management Board
for Puerto Rico (the “FOMB”) sets the following deadlines for subsequent steps in route to the
adoption of the fiscal year 2019 budget for the Commonwealth:
the Governor of violations, the Governor may submit a revised budget to FOMB on or before
May 15, 2018.
3. May 22, 2018: Pursuant to PROMESA § 202(c)(2), (i) If the Governor timely submitted
a revised budget to FOMB, FOMB may approve the Governor’s revised budget or submit
its own compliant budget to the Governor and the Legislature. (ii) If the Governor fails
to submit a revised compliant budget, FOMB shall develop and submit to the Governor
and the Legislature a revised compliant budget.
4. June 18, 2018: Pursuant to PROMESA § 202(d)(1), the Legislature must submit its
adopted budget to FOMB on or before this date.
6. June 26, 2018: Pursuant to PROMESA § 202(d)(2), if FOMB notified the Legislature of
violations and corrective actions, the Legislature shall submit a revised budget to FOMB
on or before June 26, 2018.
7. June 29, 2018: (i) Pursuant to PROMESA § 202(e), if FOMB approved the Legislature’s
adopted budget, FOMB shall issue a compliance certification to the Governor and
Legislature for such budget. (ii) If the Legislature submits a revised, compliant budget to
FOMB, FOMB shall approve it and issue a compliance certification to the Governor and
Legislature. (iii) If the Legislature fails to submit a revised, compliant budget to FOMB,
FOMB shall submit its own compliant budget to the Governor and Legislature and that
budget, pursuant to PROMESA § 202(e)(3), shall be (a) deemed to be approved by the
Governor and Legislature, (b) deemed to be subject to a compliance certification issued
by the FOMB to the Governor and Legislature, and (c) in full force and effect beginning
the first day of the fiscal year.
8. Any time through June 29, 2018: Pursuant to PROMESA § 202(f), if the Governor,
Legislature, and FOMB each certify that a jointly developed budget reflects a consensus
among them, then such budget shall serve as the budget for the Commonwealth for fiscal
year 2019.
Finally, pursuant to PROMESA § 202(b), FOMB provides the attached forecast of revenues for
fiscal year 2019 for use by the Governor in developing the budget, including the following:
All submissions required herein shall be sent to the following email address:
[email protected].
We look forward to working with you throughout the budget approval process.
Sincerely,
José B. Carrión
Chair
Andrew G. Biggs
Carlos M. García
Arthur J. González
José R. González
Ana J. Matosantos
David A. Skeel, Jr.
Note A: Calculation includes additional $3m in revenue from higher Airbnb tax collections measures, minus $201m in distributions to entities
outside of the tourism company (including Convention Center ($4m), hotels ($118m), University of Puerto Rico (“UPR” - $59m), the
general fund (“GF” ($20m) which has already been captured in the general fund section)), minus $30m in convention center debt reserve
(which are used pursuant to the fiscal plan). Notes that the tourism company has their own treasury and these revenues do not flow
through the Treasury Single Account (“TSA”) at Hacienda.
Note B: Revenues are reduced by the estimated balance sheet related receipts; the estimated balance sheet related receipts include principal
repayments of construction & mortgage loans of $45m and proceeds from investment redemption of $18m. These are not income
statement related items.
Note C: Reduced by Women, Infants, and Children (“WIC” – which are Federal Funds) because these funds are captured in the Federal Funds
revenue section.
Note D: Includes gross-up of income for services provided to other governmental entities (excludes direct GF appropriations).
Note E: Includes rent for services provided to other governmental entities (excludes GF appropriations).
Note F: Includes $171k in revenue related to the Airbnb measure.
Note G: These revenues are not available for general budgeting purposes. Fondo de Administración Municipal (“FAM”) flows directly to the
municipalities.
Note H: Pledged Sales Tax Based Amounts (“PSTBA”) flow directly to the Corporación del Fondo de Interés Apremiante (“COFINA”) trustee.
Note I: These revenues are available for use pursuant to the fiscal plan.
Note J: These are payments from municipalities, Puerto Rico Aqueducts and Sewers Authority (“PRASA”), and certain other public
corporations outside of the Commonwealth that make Pension PayGo payments for their Employees Retirement System (“ERS”)
retirees.
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The Federal, Political, and Economic Relations Commission of the Senate of Puerto Rico, has before its
consideration S.B. 919, which reads as follows:
“To establish the “Labor Reform Act of 2018”, to amend Article 2, of Act No. 180-1998, as amended;
repeal Act No. 148 of June 30, 1969, as amended; repeal of all mandatory decree passed before the
effect of this Act; repeal Article 5; amend part (a) of Article 6 and renumber it as Article 5; renumber
Article 7 as Article 6; renumber Article 8 as Article 7; renumber Article 9 as Article 8; renumber
Article 10 as Article 9; renumber Article 11 as Article 10; renumber Article 12 as Article 11;
renumber Article 13 as Article 12 of Act No. 180-1998; repeal Act No. 80 of May 30, 1976, as
amended; amend parts (a) and (b) of Article 2 of Act No. 115-1991, as amended; and for other related
matters.”
For the consideration of this bill, the Commission summons you to appear to a public hearing, which will
be held next Tuesday, May 1, 2018, at 11:00 in the morning in the Leopoldo Figueroa Room. We request
you bring with you, an explanatory brief in original with twenty (20) copies.
It is a requirement of the Senate of Puerto Rico, that all the Legislative Commissions have a digital file of
all the explanatory brief before its consideration. We request that you deliver to us a digital copy of it no
later than 5:00 pm on Monday, April 30, 2018. It shall be sent to the following e-mail addresses:
[email protected], [email protected].
Sincerely
BY ELECTRONIC MAIL
This is in response to your letter of April 26th 2018, in which you request that I appear before the
Senate Committee on Federal, Political, and Economic Affairs, at a hearing on May 1st, 2018,
concerning the labor law legislation required by the certified Commonwealth Fiscal Plan.
The Oversight Board hopes that serious consideration be given to the draft bill we provided the
Governor and the Legislature to comply with the Fiscal Plan. In that same spirit, although I am
unable to attend the Committee’s hearing, the Board is willing to provide any and all
information, as well as background materials, necessary to further inform your consideration of
the bill. Our Members, executive staff and consultants will be available to meet with you and
members of the Committee, as well as its staff, if it becomes necessary.
In accordance with PROMESA, the “purpose of the Oversight Board is to provide a method for a
covered territory to achieve fiscal responsibility and access to capital markets”. The certified
Fiscal Plan was developed, after months of collaborative work with the Government of Puerto
Rico, to achieve those goals. We are hopeful that the Puerto Rico Legislature can work with the
Government to implement the necessary fiscal and structural reforms to right Puerto Rico’s
economic path.
Sincerely,
Andrew G. Biggs
Carlos M. García
Arthur J. González
José R. González
Ana J. Matosantos
David A. Skeel, Jr.
The Federal, Political, and Economic Relations Commission of the Senate of Puerto Rico, has before its
consideration S.B. 919, which reads as follows:
“To establish the “Labor Reform Act of 2018”, to amend Article 2, of Act No. 180-1998, as amended;
repeal Act No. 148 of June 30, 1969, as amended; repeal of all mandatory decree passed before the
effect of this Act; repeal Article 5; amend part (a) of Article 6 and renumber it as Article 5; renumber
Article 7 as Article 6; renumber Article 8 as Article 7; renumber Article 9 as Article 8; renumber
Article 10 as Article 9; renumber Article 11 as Article 10; renumber Article 12 as Article 11;
renumber Article 13 as Article 12 of Act No. 180-1998; repeal Act No. 80 of May 30, 1976, as
amended; amend parts (a) and (b) of Article 2 of Act No. 115-1991, as amended; and for other related
matters.”
Given the Importance of this bill drafted by the Financial Oversight & Management Board for Puerto Rico,
the Commission summoned you to appear to a public hearing, tomorrow Tuesday, May 1, 2018, at 11: in
the morning in the Leopoldo Figueroa Room. However, this past Friday, April 27, 2018, we received a call
from you excusing yourself from the hearing, since you could not appear on the day it was scheduled.
It is important for the Senate and for the People of Puerto Rico, that you as President of the Financial
Oversight & Administration Board for Puerto Rico, explain to us the benefits of your project. Thus, we
request you state three (3) dates you are available, of any day of the week, in which you can appear before
this Commission, in a Public Hearing.
May 4, 2018
BY E-MAIL
I acknowledge receipt of your April 30, letter of the current year. As you know, the labor reform required
by the new Fiscal Plan for Puerto Rico certified by the Financial Supervision Board is a fundamental
element to promote the economic growth projected by the plan. Puerto Rico needs these reforms to break
the vicious cycle of a recession and lack of competitiveness that has affected our people for too many years.
We acknowledge that the Fiscal Plan contains measures that are difficult but necessary if we wish to
stimulate the economic development and the creation of jobs in Puerto Rico. The alternative is that our
people have to continue immigrating in search of better job opportunities in Florida, Texas, and other states;
jurisdictions, it needs to be pointed out, that have a labor structure that is very similar to the one required
to the Fiscal Plan.
Although pursuant to Section 108 of PROMESA we cannot answer your summons, count on our
collaboration. Specifically, we maintain our offer to help you, your colleagues, and work team to better
understand the macroeconomic projections of the Fiscal Plan, for which we gladly can coordinate work
sessions to show you the econometric models to develop the Fiscal Plan.
Sincerely,
May 9, 2018
This past April 26, 2018, upon request of the Financial Oversight and Administration Board for Puerto
Rico, we filed in the Senate of Puerto Rico, Senate Bill 919, “Labor Reform Act of 2018.”
Just as every legislative bill, it will follow the ordinary legislative process. It will be analyzed with
responsibility and evaluating the recommendations of those persons with knowledge in the matter and who
have studied the economic system of Puerto Rico for years.
The Financial Oversight Board, has filed this proposal in a vacuum. We summon you to appear before the
Federal, Social, and Economic Relations Commission of the Senate with the goal of you stating to us and
evidence the need to pass the Labor Reform. Due to your refusal to appear before the Senate, I reiterate that
the People of Puerto Rico have a right to know the analysis performed, the studies, and the empirical data
that is the basis of the economic projections established by the Board, with the passing of said bill.
Thus, we request that in a term of no more than five (5) days, counted from the receipt of this
communication, you send us the documents that support the economic projections of the aforementioned
bill.
Structural Reforms
(1) The Legislature shall introduce and the Governor shall sign a bill that repeals Act No. 80 of
May 30, 1976 (the “Bill”) on or before June 27, 2018, which shall become effective on or before
January 1, 2019. The Bill shall be presented to the FOMB prior to its introduction in the
Legislature so that the FOMB can confirm that it is consistent with the fiscal plan. The Bill
cannot increase the mandatory benefits for private sector employees (e.g., no increase in vacation
days, sick days, sick leave, mandated paid leave, Christmas bonus, or minimum wage) or
otherwise undermine the goals or intent of the labor reform as provided in Chapter 7 of the New
Fiscal Plan. The Bill shall state that, for the avoidance of doubt, an employee hired for an
indefinite period of time does not have a cause of action against their employer merely for the
employer’s termination of the employment relation.
(2) As provided in Chapter 7 of the New Fiscal Plan, PAN participants that are able-bodied and
aged 18-59 must be subject to a work requirement which must become effective after the
individual has collected PAN benefits for three months. The work requirement may be satisfied
with 80 hours per month of paid work, volunteer work, and/or qualified training and education.
The only exceptions to this work requirement are those under the age of 18, over the age of 60,
those with dependents under the age of 18, and those who are certified by a medical doctor as
physically or mentally unfit for any employment. Moreover, a qualified third-party analytical
firm retained by the Government and acceptable to the FOMB must validate that these
requirements are being fully implemented. This third party will share equal information about its
work with both the Government and FOMB.
(3) In addition to the Ease of Doing Business reforms provided in Chapter 8 of the New Fiscal
Plan, the Government will also take targeted steps to improve Puerto Rico’s ranking in the
“Trading Across Borders” indicator by FY2023, with the goal of closing the gap with the
mainland U.S. by at least 50% from its 2018 ranking, i.e., move from 64 to at least 50.
Fiscal Measures (consistent with PROMESA, all will be revisited annually to confirm
compliance with the then-applicable fiscal plan)
(1) Reinvestment as provided in Chapter 11 of the New Fiscal Plan will be undone (but for the
education-specific reinvestment in teacher salaries and new textbooks). In its place, the
Government may spend up to a total of $345 million over FY2019-2023 in reform
implementation and economic development initiatives in the following categories/agencies:
Digital Reform (CIO/PRITS), Procurement (Office of CFO), Ease of Doing Business (DDEC),
CRRO, P3, and Infrastructure projects (PRIFA/Fortaleza). The Government must provide
specific dollar amounts for each category/agency for each year of FY2019-2023 by May 25,
2018.
(2) Agency efficiencies as provided in Chapter 13 of the New Fiscal Plan will be modified such
that the rightsizing applied to the Legislature and Federal Affairs Office and Resident
Commissioner are undone throughout FY2019-2023 and the rightsizing applied to the Judiciary
is reduced by half each year throughout FY2019-2023. The elimination of the Christmas bonus
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Exhibit Page 2 of 2
for public employees will be undone through FY2019-2023. The Government will consider
renaming the Christmas bonus to remove the word “bonus” and replace with the word “stipend”.
(3) Reductions in subsidies and appropriations as provided in Chapter 17 of the New Fiscal Plan
will be modified such that a municipality economic development fund will be created and funded
with $50 million per year through FY2019-2023 and UPR will receive an additional $25 million
per year throughout FY2019-2023, provided that the additional funds that UPR receives must be
allocated for means-tested scholarships for students.
(4) Tax law initiatives as provided in Chapter 15 of the New Fiscal Plan will be modified such
that the enforcement language in 15.4.3 is removed. The requirement that any tax reform remain
revenue neutral, however, is unchanged.
(5) The Government may allocate to UPR up to an additional $40 million per year throughout
FY2019-2023, provided that the additional funds that UPR receives must be allocated for means-
tested scholarships for students, and provided further that any additional money allocated to UPR
pursuant to this subsection reduces dollar-for-dollar the amount the Government spends over
FY2019-2023 in reform implementation and economic development initiatives (which is
currently a total of $345 million) or comes from the rightsizing savings applied to the Judiciary
(which is currently a total of $80 million).
EXHIBIT
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Exhibit Page 1 of 4
[CERTIFIED TRANSLATION] I, Carlos Laó Dávila, a Federally certified interpreter, number 03-052, hereby certify that the attached
document is a true and exact translation of the original certified or translated by me
June 4, 2018
Warm greetings.
The Government Commission is performing an evaluation and analysis on H.B. 1634 and S.B. 1011. These
bills have the purpose of repealing Act No. 80 of May 30, 1976, as amended; in order to comply with those
agreements reached by the Government and the Oversight Board; to protect the Christmas bonus of public
and private employees; maintain unaltered the vacation and sick leave of private sector employees; reaffirm
the public policy of the Government of Puerto Rico on permanency of all those labor rights established in
the Constitution of Puerto Rico and the applicable state and state and federal laws; provide for the existing
claims on unfair termination and other related matters.
Last week, the passing of S.B. 1011 by Senate of Puerto Rico, with its amendments, was discussed in the
media. These amendments intend for the provisions of Act No. 80, supra, remain in effect for employers
and employees protected until said bill is passed. Given that we have before our consideration two proposals
with the same purpose but with different scope we have the obligation to go before you to clarify several
questions regarding the matter.
El Capitolio, Box 9022228, San Juan, Puerto Rico 00902-2228*T. 787-721-6040 ext. 2082
Case:17-03283-LTS Doc#:3454-19 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 2 of 4
[CERTIFIED TRANSLATION] I, Carlos Laó Dávila, a Federally certified interpreter, number 03-052, hereby certify that the attached
document is a true and exact translation of the original certified or translated by me
Jorge Navarro Suárez
Representative District 5
GOVERNMENT COMMISSION
President
[Seal House of Representatives]
To provide the information you are granted a term if five (5) working days. It is necessary to have this
information in our office in or prior to Monday, June 11, 2018. If you have any questions or need additional
information, you may contact the number indicated at the footer of the letter.
[Illegible signature]
Jorge Navarro Suárez
President
Government Commission
JNS/tmrs
Attachments
El Capitolio, Box 9022228, San Juan, Puerto Rico 00902-2228*T. 787-721-6040 ext. 2082
Case:17-03283-LTS Doc#:3454-19 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
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Case:17-03283-LTS Doc#:3454-20 Filed:07/09/18 Entered:07/09/18 14:08:37EXHIBIT
Desc: 18
Exhibit Page 1 of 3
WHEREAS, on June 30, 2016, the federal Puerto Rico Oversight, Management, and
Economic Stability Act (“PROMESA”) was enacted; and
WHEREAS, on April 19, 2018, the Board certified the fiscal plan for the
Commonwealth of Puerto Rico as developed by the Board; and
WHEREAS, on May 4, 2018, the Governor submitted a proposed budget for the
Commonwealth for fiscal year 2019; and
WHEREAS the Board and its advisors held extensive discussions with the
Governor’s representatives about the proposed budget; and
WHEREAS, after substantial deliberations, on May 10, 2018, the Board sent a notice
of violation pursuant to PROMESA § 202(c)(1)(B) to the Governor for the Governor’s
proposed budget for the Commonwealth for fiscal year 2019 as submitted on May 4, 2018;
and
WHEREAS, on May 18, 2018, the Governor submitted a revised proposed budget
for the Commonwealth for fiscal year 2019; and
00557629; 1
Case:17-03283-LTS Doc#:3454-20 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 2 of 3
WHEREAS the Board and its advisors held extensive discussions with the
Governor’s representatives about the revised proposed budget; and
WHEREAS, on May 30, 2018, the Board approved certain revisions to the
previously certified fiscal plan for the Commonwealth and re-certified the fiscal plan as so
revised; and
WHEREAS, on June 1, 2018, the Government submitted to the Board the draft
resolutions for the General Fund and Special Appropriations for the Commonwealth’s fiscal
year 2019 budget (collectively, the “Budget Resolutions”); and
WHEREAS, after substantial deliberations, the Board determined that the Budget
Resolutions do not reflect a compliant budget as required by PROMESA § 202(c)(2) and
has developed a revised compliant budget which is attached hereto as exhibit 1, in
accordance with PROMESA § 202(c)(2) (the “Revised Compliant Budget”);
00557629; 1 2
Case:17-03283-LTS Doc#:3454-20 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 3 of 3
00557629; 1 3
EXHIBIT
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Exhibit Page 1 of 68
A-
House of Representatives
R. C. of C.
June 2018
Joint Resolution
To allocate the amount of six billion nine hundred and eighteen million four
hundred and forty thousand ($6,918,440,000), under the General Fund of the State
Treasury, for regular operating costs of the programs and agencies that make up the
Executive Branch and the programs that make up the Judicial Branch and the
Legislative Branch during the fiscal year ending 30 June 2019, the following amounts
or any portions of those amounts that are necessary.
Section 1.- The sum of six billion nine hundred and eighteen million four
hundred and forty thousand ($6,918,440,000), is assigned to the General Fund of the State
Treasury, for regular operating expenses of the programs and agencies of the Executive
Branch and the programs that make up the Judicial Branch and the Legislative Branch
during the fiscal year ending 30 June 2019, the following amounts or any portions of those
amounts that are necessary, for the purposes that are outlined below:
001
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 2 of 68
7 Subtotal $3,582,000
17 Subtotal $86,148,000
18
002
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 3 of 68
6 Subtotal $185,301,000
16 Subtotal $37,473,000
17
003
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 4 of 68
5 Subtotal $23,216,000
10 Subtotal $15,199,000
11
20 Subtotal $95,526,000
21
004
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 5 of 68
2 Subtotal $5,988,000
8 Subtotal $74,200,000
17 Subtotal $2,347,000
18
21 Subtotal $8,525,000
22
005
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 6 of 68
10 Subtotal $7,137,000
11
20 Subtotal $21,157,000
21
006
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 7 of 68
7 Subtotal $11,543,000
13 Subtotal $75,611,000
14
19 Subtotal $104,868,000
20
007
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 8 of 68
3 Central Office recovery and reconstruction and other related expenses $20,000,000
13 Subtotal $138,854,000
14
18 Subtotal $507,542,000
19
008
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 9 of 68
4 Subtotal $241,000
12 Subtotal $4,016,000
13
17 Subtotal $10,220,000
18
009
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 10 of 68
1 Subtotal $14,412,000
6 Subtotal $4,672,000
13 Subtotal $30,868,000
14
18 Subtotal $237,000
19
20 26 Local Redevelopment Authority of the Lands and Facilities of Naval Station Roosevelt
21 Roads
010
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 11 of 68
2 Subtotal $1,543,000
7 Subtotal $201,000
14 Subtotal $12,500,000
15
16 29 Center for Research, Education and Services Medical Care and Diabetes
18 Subtotal $361,000
19
011
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 12 of 68
4 Subtotal $2,945,000
15 Subtotal $32,106,000
16
21 Subtotal $888,000
22
012
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 13 of 68
7 Subtotal $1,527,000
14 Subtotal $493,000
15
013
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 14 of 68
2 Subtotal $10,291,000
6 Subtotal $800,000
11 Subtotal $390,000
12
19 Subtotal $1,883,000
20
014
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 15 of 68
6 Subtotal $7,748,000
19 Subtotal $6,208,000
20
015
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 16 of 68
6 Subtotal $3,094,000
10 Subtotal $1,000
11
19 Subtotal $4,292,000
20
016
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 17 of 68
6 Subtotal $2,375,000
13 Subtotal $10,940,000
14
22 Subtotal $1,591,000
017
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 18 of 68
11 Subtotal $20,544,000
12
18 Subtotal $11,443,000
19
018
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 19 of 68
7 Subtotal $379,473,000
13 Subtotal $1,010,000
14
15 51 Department of Education
019
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 20 of 68
10 Subtotal $2,536,283,000
11
22 Subtotal $7,690,000
020
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 21 of 68
12 expenses $9,800,000
18 Subtotal 201,491,000
19
021
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 22 of 68
8 J For the exclusive use of the payment of expenses and fees to the
10 Subtotal $131,778,000
11
20 Subtotal $41,161,000
21
022
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 23 of 68
3 Subtotal $2,395,000
5 57 Department of Health
15 Subtotal $240,186,000
16
18 Management
023
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 24 of 68
4 Subtotal $7,180,000
15 Subtotal $64,029,000
16
024
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 25 of 68
1 Subtotal $18,409,000
11 Subtotal $15,075,000
12
025
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 26 of 68
1 J For drug trafficing operations, including materials and related costs $2,250,000
2 K For Expenses related to the police department reform and related engineering
4 and any other expenditures deemed useful and relevant to the reform $20,000,000
5 Subtotal $879,028,000
16 Subtotal $49,479,000
17
18 64 Department of Housing
026
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 27 of 68
3 Subtotal $21,679,000
13 Subtotal $33,299,000
14
027
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 28 of 68
1 Subtotal $18,140,000
10 Subtotal $10,909,000
11
17 Subtotal $1,749,000
18
028
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 29 of 68
3 Subtotal $12,467,000
5 70 Parole Board
11 Subtotal $2,707,000
12
20 Subtotal $13,728,000
21
029
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 30 of 68
5 Subtotal $997,000
15 Subtotal $1,480,000
16
21 Subtotal $758,000
22
030
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 31 of 68
7 Subtotal $3,623,000
12 Subtotal $8,556,000
13
21 Subtotal $9,321,000
22
031
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 32 of 68
11 J For the implementation and audit of the Base Zero Budgeting (PBC) $2,000,000
12 Subtotal $55,990,000
13
20 Subtotal $2,009,000
21
032
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 33 of 68
3 Subtotal $36,461,000
10 Subtotal $2,665,000
11
20 Subtotal $30,597,000
21
033
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 34 of 68
8 Subtotal $27,294,000
18 Subtotal $3,018,000
19
034
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 35 of 68
4 Subtotal $1,872,000
11 Subtotal $1,059,000
12
21 Subtotal $2,598,000
22
035
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 36 of 68
5 Subtotal $2,586,000
12 Subtotal $59,477,000
13
036
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 37 of 68
3 Subtotal $43,020,000
6 A To cover the costs of operation of the Judicial Branch, Law Num. 147
9 Subtotal $306,967,000
10
13 Subtotal $700,000
16 Subtotal $25,000,000
17
037
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 38 of 68
Section 2.- The Department of the Treasury will remit to the Legislative
Branch and its components, to the Judiciary, to the University of Puerto Rico, and to the
non-profit entities that receive funds from this Resolution, monthly and in advance, the
budgetary allotments corresponding to one twelfth of the annual allocation provided in
this Joint Resolution for each entity. Such one-twelfth monthly allocation to each entity
(except with respect to the Judiciary) shall be subject to the five percent (5%) withholding
set forth in Section 3 below during the first three quarters of this fiscal year.
Section 3.- The Director of the Office of Management and Budget (“OMB”)
may authorize the disbursement of up to ninety-five percent (95%) of each appropriation
provided in this Joint Resolution during the first three quarters of this fiscal year. The
Director of OMB shall withhold the remaining five percent (5%) of each appropriation
until after the end of the third quarter of this fiscal year. Such withheld percentage of each
appropriation shall only be disbursed during the fourth quarter of this fiscal year if the
first 6 months of actual revenues reported to the Oversight Board reach the Government’s
monthly revenue projections for that period and subject to the prior approval of the
Director of OMB. If actual revenues for the first 6 months of the fiscal year fail to reach
the Government’s monthly revenue projections for that period, the amount of the
withheld percentage of each appropriation that may be encumbered shall be reduced
proportionally according to the negative budget variance between projected and actual
revenues.
Section 4.- No later than 45 days after the closing of each quarter of a fiscal
year, the Secretary of Treasury shall revise the projected net revenues of the General Fund
for the current fiscal year (the “Quarterly Revision”) and notify the revision to the
Director of the OMB, the Governor and the Oversight Board. The Quarterly Revision shall
project future revenues based on actual revenues, and include revisions to the
assumptions used to generate the General Fund’s net revenue projections.
Section 5.- All appropriations authorized in any previous fiscal year payable
from the General Fund, including appropriations without a specific fiscal year, are hereby
eliminated and no disbursement of public funds may be covered by such appropriations,
except: (1) appropriations without a specific fiscal year to carry out permanent
improvements that have been accounted for and kept on the books; and (2) the portion
of the appropriations authorized for fiscal year 2018 that have been encumbered on or
before June 30, 2018, which shall be kept in the books for 60 days after the termination of
fiscal year 2018 and after those 60 days no amount shall be drawn against such portion
for any reason. This restriction shall not apply to programs financed in whole or in part
with federal funds.
038
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Exhibit Page 39 of 68
In conjunction with the reports that the Governor must submit to the
Oversight Board no later than 15 days after the last day of each quarter of the fiscal year
pursuant to section 203 of PROMESA, the Executive Director of AAFAF and the Director
of the OMB will certify to the Oversight Board that no assignment of any previous fiscal
year (except for allowances covered by the two exceptions authorized in the previous
paragraph of this section) has been used to cover any expense.
In conjunction with the reports that the Governor must submit to the
Oversight Board not later than 15 days after the last day of each quarter of the fiscal year
039
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 40 of 68
according to Section 203 of PROMESA, the Executive Director of the Fiscal Agency and
Financial Advisory Authority (“AAFAF”, by its Spanish acronym) and the Director of
OMB will certify to the Oversight Board that no amount of: (i) the Social Security Reserve;
(ii) the Police Salary Reserve; or (iii) the Teacher Salary Investment Reserve has been used
unless the Executive Director of AAFAF and the Director of OMB certify to the Oversight
Board that the corresponding conditions described above have been satisfied.
Section 9.- The Office of Management and Budget and the Department of
the Treasury are authorized to establish the necessary mechanisms to ensure that when
implementing the concept of mobility, pursuant to the provisions of Law 8-2017, as
amended, known as the “Puerto Rico Human Resources Management and
Transformation in the Government Act,” the corresponding transfer of funds allocated to
payroll and related costs of said employee are to be carried out simultaneously.
040
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 41 of 68
all reports on liquidity or expenses that it can generate based on available financial
information.
The reports required under this Section are in addition to the reports that
the Governor must submit to the Oversight Board under Section 203 of PROMESA.
Section 11.- If during the fiscal year the government fails to comply with the
liquidity and budgetary savings measures required by the New Fiscal Plan for Puerto
Rico certified by the Oversight Board, the Government shall take all necessary corrective
action, including the measures provided in PROMESA sections 203 and 204
Section 12.- The Secretary of Treasury, the treasurer and Executive Directors
of each agency or Public Corporation covered by the New Fiscal Plan for Puerto Rico
certified by the Oversight Board, and the Director of the OMB (or their respective
successors) shall be responsible for not spending or encumbering during fiscal year 2019
any amount that exceeds the appropriations authorized for such year. This prohibition
applies to every appropriation set forth in this Joint Resolution, including appropriations
for payroll and related costs. Any violation of this prohibition shall constitute a violation
of this Joint Resolution and Act 230-1974.
Section 14.- This Joint Resolution will be known as “Joint Resolution of the
General Fund Budget for Fiscal Year 2018-2019.”
Section 15.- This Joint Resolution shall take effect on 1 July 2018.
041
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 42 of 68
A-
House of Representatives
R. C. of C.
June 2018
Joint Resolution
To assign to public agencies and instrumentalities the amount of one billion eight
hundred and thirty million eight hundred and seventy eight thousand
($1,830,878,000), for the development of special, permanent or temporary programs
or activities for Fiscal Year 2018-2019; and to authorize the transfer of funds between
the agencies; to provide for the submission of a quarterly report of transfers made;
to provide that the allocations included in the Budget will be the only ones in force
and that no debt whatsoever will be generated by total or partial omission; to
authorize contracts; to authorize donations; to order that non-profit entities file a
semi-annual report on the use of the allocated funds; to authorize the retention of
payments for various concepts; to authorize the creation of control mechanisms to
comply with reserves in Government procurement; to authorize matching of
allocated funds; and for other related purposes.
Section 1.- The sum of one billion eight hundred and thirty million eight
hundred and seventy eight thousand ($1,830,878,000), is assigned to the General Fund of
the State Treasury, for regular operating expenses of the programs and agencies of the
Executive Branch and the programs that make up the Judicial Branch and the Legislative
Branch during the fiscal year ending 30 June 2019, the following amounts or any portions
of those amounts that are necessary, for the purposes that are outlined below:
001
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 43 of 68
4 Subtotal $150,000
7 A To cover the costs of operation Sor Isolina Ferre Center, Inc., Playa de
14 F To cover the costs of operation Sor Isolina Ferre Center, Inc., Caimito,
18 H To cover expenses of Hogar The Providence, Located in Old San Juan $25,000
19 Subtotal $7,015,000
20
002
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 44 of 68
7 as amended $15,000,000
10 E For technical assistance and economic incentives Bona fide farmers $1,374,000
15 J To encourage the pineapple industry, the poultry and other projects $1,500,000
19 Subtotal $41,987,000
20
003
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 45 of 68
1 Subtotal $399,000
5 Subtotal $175,784,000
17 Commas $130,000
004
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 46 of 68
13 Education $6,000
15 O For the operating expenses of the joint venture commission for the
16 ongoing review and the revision of the criminal law code and for the
005
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 47 of 68
1 Subtotal $29,986,000
4 Budget
15 Rico $2,000,000
16 F For the payment of the services provided through of the 330 centers, to
006
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 48 of 68
3 artifacts $350,000
4 L To cover the operational costs of the Boys and Girls Club $1,242,000
6 Cerrillos $7,077,000
8 O To pay for the PRIFAS Accounting System and costs related to the IT
9 reform $50,000,000
19 research $10,500,000
20 T For the negotiated police "Pay Out" (payment for prior year debts) $122,000,000
007
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 49 of 68
2 Subtotal $723,809,000
6 Subtotal $4,000,000
14 Subtotal $1,900,000
15
21 agreement $50,000
22 Subtotal $7,050,000
008
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 50 of 68
3 A To finance the costs associated with the Music project 100x35 $1,000,000
4 Subtotal $1,000,000
10 Subtotal $1,000,000
11
15 Subtotal $71,000
16
20 milk $14,360,000
21 Subtotal $14,360,000
22
009
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 51 of 68
4 Subtotal $15,640,000
10 Subtotal $1,001,000
11
12 17 Department of Education
14 Subtotal $2,300,000
15
21 as amended $280,000
010
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 52 of 68
1 D For the operation and maintenance of the real estate registry of Puerto
9 Subtotal $23,002,000
10
16 Subtotal $882,000
17
20 B For federal matching funds for the project for Flood Control of the
22 Subtotal $3,710,000
011
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 53 of 68
4 as the Law of the Fund and the Board for the Development of the
6 Subtotal $300,000
8 22 Department of Health
12 to the staff of the Neurovascular Surgery Center of Puerto Rico and the
17 treatment $2,860,000
18 D To cover the operating costs of the Program for the Prevention and
012
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 54 of 68
013
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 55 of 68
5 Together" $2,100,000
8 young children. New and existing programs for the diagnosis and
21 amended $30,000
014
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 56 of 68
4 CC Matching Federal Funds, MMI, MFCO and other related expenses $17,111,000
5 Subtotal $47,408,000
22 Subtotal $3,577,000
015
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 57 of 68
5 B For the matching of Federal Funds of the State Clean Water Revolving
7 projects $10,980,000
8 Subtotal $11,980,000
11 A For operating expenses of the group, the advisory panel for the
17 Law for Joint and Cooperative Agreement Special Fund for Services
19 Subtotal $122,000
20
016
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 58 of 68
1 Subtotal $64,750,000
4 Transformation
7 Subtotal $4,000
11 Subtotal $1,250,000
12
20 improvements $500,000
21 Subtotal $500,000
22
017
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 59 of 68
3 Subtotal $216,000
13 Subtotal $13,500,000
14
22 veterans and their relatives for the protection of their rights and
018
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 60 of 68
1 benefits $135,000
3 Subtotal $1,381,000
8 as amended $16,000
12 Subtotal $17,000
13
019
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 61 of 68
2 F For the Special Council to address the social inequality in Puerto Rico $12,000
3 Subtotal $2,144,000
14 Sciences $2,500,000
21 I For operational costs of the Center of Advanced Studies for the Public
020
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 62 of 68
8 Subtotal $628,683,000
021
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 63 of 68
Section 2.- The Department of the Treasury will remit to the Legislative
Branch and its components, to the Judiciary, to the University of Puerto Rico, and to the
non-profit entities that receive funds from this Resolution, monthly and in advance, the
budgetary allotments corresponding to one twelfth of the annual allocation provided in
this Joint Resolution for each entity. Such one-twelfth monthly allocation to each entity
(except with respect to the Judiciary) shall be subject to the five percent (5%) withholding
set forth in Section 3 below during the first three quarters of this fiscal year.
Section 3.- The Director of the Office of Management and Budget (“OMB”)
may authorize the disbursement of up to ninety-five percent (95%) of each appropriation
provided in this Joint Resolution during the first three quarters of this fiscal year. The
Director of OMB shall withhold the remaining five percent (5%) of each appropriation
until after the end of the third quarter of this fiscal year. Such withheld percentage of each
appropriation shall only be disbursed during the fourth quarter of this fiscal year if the
first 6 months of actual revenues reported to the Oversight Board reach the Government’s
monthly revenue projections for that period and subject to the prior approval of the
Director of OMB. If actual revenues for the first 6 months of the fiscal year fail to reach
the Government’s monthly revenue projections for that period, the amount of the
withheld percentage of each appropriation that may be encumbered shall be reduced
proportionally according to the negative budget variance between projected and actual
revenues.
Section 4.- No later than 45 days after the closing of each quarter of a fiscal
year, the Secretary of Treasury shall revise the projected net revenues of the General Fund
for the current fiscal year (the “Quarterly Revision”) and notify the revision to the
Director of the OMB, the Governor and the Oversight Board. The Quarterly Revision shall
project future revenues based on actual revenues, and include revisions to the
assumptions used to generate the General Fund’s net revenue projections.
Section 5.- All appropriations authorized in any previous fiscal year payable
from the General Fund, including appropriations without a specific fiscal year, are hereby
eliminated and no disbursement of public funds may be covered by such appropriations,
except: (1) appropriations without a specific fiscal year to carry out permanent
improvements that have been accounted for and kept on the books; and (2) the portion
of the appropriations authorized for fiscal year 2018 that have been encumbered on or
before June 30, 2018, which shall be kept in the books for 60 days after the termination of
fiscal year 2018 and after those 60 days no amount shall be drawn against such portion
for any reason. This restriction shall not apply to programs financed in whole or in part
with federal funds.
022
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 64 of 68
In conjunction with the reports that the Governor must submit to the
Oversight Board no later than 15 days after the last day of each quarter of the fiscal year
pursuant to section 203 of PROMESA, the Executive Director of AAFAF and the Director
of the OMB will certify to the Oversight Board that no assignment of any previous fiscal
year (except for allowances covered by the two exceptions authorized in the previous
paragraph of this section) has been used to cover any expense.
In conjunction with the reports that the Governor must submit to the
Oversight Board not later than 15 days after the last day of each quarter of the fiscal year
according to Section 203 of PROMESA, the Executive Director of the Fiscal Agency and
Financial Advisory Authority (“AAFAF”, by its Spanish acronym) and the Director of
OMB will certify to the Oversight Board that no amount of the: (i) Emergency Reserve or
(ii) the Fiscal Plan Reserve has been used to cover any expenses, unless it has been
approved by the Oversight Board.
023
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 65 of 68
Section 9.- The Office of Management and Budget and the Department of
the Treasury are authorized to establish the necessary mechanisms to ensure that when
implementing the concept of mobility, pursuant to the provisions of Law 8-2017, as
amended, known as the “Puerto Rico Human Resources Management and
Transformation in the Government Act,” the corresponding transfer of funds allocated to
payroll and related costs of said employee are to be carried out simultaneously.
The reports required under this Section are in addition to the reports that
the Governor must submit to the Oversight Board under Section 203 of PROMESA.
Section 11.- If during the fiscal year the government fails to comply with the
liquidity and budgetary savings measures required by the New Fiscal Plan for Puerto
Rico certified by the Oversight Board, the Government shall take all necessary corrective
action, including the measures provided in PROMESA sections 203 and 204
Section 12.- The Secretary of Treasury, the treasurer and Executive Directors
of each agency or Public Corporation covered by the New Fiscal Plan certified by the
Oversight Board, and the Director of the OMB (or their respective successors) shall be
responsible for not spending or encumbering during fiscal year 2019 any amount that
exceeds the appropriations authorized for such year. This prohibition applies to every
appropriation set forth in this Joint Resolution, including appropriations for payroll and
related costs. Any violation of this prohibition shall constitute a violation of this Joint
Resolution and Act 230-1974.
024
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 66 of 68
Joint Resolution. The effect of such judgment will be limited to the clause, paragraph,
subparagraph, sentence, word, letter, article, provision, section, subsection, title, chapter,
subchapter, heading, or part thereof that has been annulled or declared unconstitutional.
If the application to a person or circumstance of any clause, paragraph, subparagraph,
sentence, word, article, provision, section, subsection, title, chapter, subchapter, heading,
or part of this Joint Resolution is invalidated or declared unconstitutional, the decision,
opinion, or judgment entered to that effect will not affect or invalidate the application of
the remainder of this Joint Resolution to those persons or circumstances in which it can
validly apply. It is the express and unequivocal will of this Legislature that the courts
enforce the provisions and the application of this Joint Resolution to the greatest extent
possible, even if any of its parts is set aside, annulled, invalidated, prejudiced, or declared
unconstitutional, or even if its application to any person or circumstance is annulled,
invalidated, or declared unconstitutional. This Legislature would have approved this
Joint Resolution regardless of the finding of severability that the Court may make.
Section 15.- This Joint Resolution shall take effect on 1 July 2018.
025
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 67 of 68
A-____
CÁMARA DE REPRESENTANTES
R. C. de la C. _____
___ DE MAYO DE 2018
Presentada por los representantes Méndez Núñez, Torres Zamora, Rodríguez Aguiló,
Hernández Alvarado, Alonso Vega, Aponte Hernández, Banchs Alemán, Bulerín Ramos,
Charbonier Chinea, Charbonier Laureano, Del Valle Colón, Franqui Atiles, González
Mercado, Lassalle Toro, Lebrón Rodríguez, Mas Rodríguez, Meléndez Ortiz, Miranda
Rivera, Morales Rodríguez, Navarro Suárez, Pagán Cuadrado, Parés Otero, Peña
Ramírez, Pérez Cordero, Pérez Ortiz, Quiñones Irizarry, Ramos Rivera, Rivera Guerra,
Rivera Ortega, Rodríguez Hernández, Rodríguez Ruiz, Santiago Guzmán, Soto Torres y
Torres González
RESOLUCIÓN CONJUNTA
Para autorizar el uso de doscientos setenta y nueve millones ochocientos cincuenta mil
dólares ($279,850,000) de los fondos cobrados por concepto del arbitrio al
petróleo crudo, productos parcialmente elaborados y productos terminados
derivados del petróleo y cualquier otra mezcla de hidrocarburos para ser
utilizados para gastos de nómina y gastos relacionados del Departamento de
Educación y del Negociado de la Policía del Departamento de Seguridad
Pública durante el año fiscal que termina el 30 de junio de 2019; y para otros
fines relacionados.
3 cincuenta mil dólares ($279,850,000) del producto del arbitrio al petróleo crudo,
00557645; 2
Case:17-03283-LTS Doc#:3454-21 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 68 of 68
2
4 Rentas Internas para un Nuevo Puerto Rico”, para cubrir gastos de nómina y otros
10 conformidad con el poder de razón de estado del Gobierno de Puerto Rico. En caso
11 de que las disposiciones de esta Resolución Conjunta estén en conflicto con las
14 Sección 3.- Esta Resolución Conjunta comenzará a regir a partir del 1 de julio
15 de 2018.
00557645; 2
EXHIBIT
Case:17-03283-LTS Doc#:3454-22 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 1 of 2 20
Case:17-03283-LTS Doc#:3454-22 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Exhibit Page 2 of 2
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page12ofof145
89
EXHIBIT 21
A-
Cámara de Representantes
R. C. de la C.
30 de junio de 2018
Resolución Conjunta
Para asignar la cantidad de seis mil millones novecientos noventa y uno millones ciento
cincuenta y cinco mil dólares ($6,991,155,000), con cargo al Fondo General del Tesoro Estatal,
para gastos ordinarios de funcionamiento de los programas y agencias que componen la
Rama Ejecutiva y los programas que componen la Rama Judicial y la Rama Legislativa
durante el año fiscal que concluye el 30 de junio de 2019, las siguientes cantidades o la
porción de las mismas fuese necesario; y para otros fines relacionados.
Sección 1.- Se asigna la cantidad de seis mil millones novecientos noventa y uno
millones ciento cincuenta y cinco mil dólares ($6,991,155,000) al Fondo General del Tesoro Estatal
para gastos ordinarios de funcionamiento de los programas y agencias de la Rama Ejecutiva y los
programas que componen la Rama Judicial y la Rama Legislativa durante el año fiscal que
concluye el 30 de junio de 2019, las siguientes cantidades o la porción de las mismas que fuese
necesaria, para los propósitos que se detallan a continuación:
001
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page23ofof145
89
7 Subtotal $3,308,000
17 Subtotal $84,454,000
18
002
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page34ofof145
89
6 Subtotal $191,867,000
16 Subtotal $33,805,000
17
003
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page45ofof145
89
5 Subtotal $22,187,000
10 Subtotal $15,199,000
11
22 Subtotal $92,090,000
004
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page56ofof145
89
4 Subtotal $5,988,000
10 Subtotal $96,560,000
11
19 Subtotal $2,275,000
20
005
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page67ofof145
89
1 Subtotal $8,525,000
12 Subtotal $11,574,000
13
22 Subtotal $39,376,000
006
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page78ofof145
89
9 Subtotal $10,589,000
10
15 Subtotal $70,245,000
16
17 16 Asamblea Legislativa
21 Subtotal $81,247,000
22
007
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page89ofof145
89
15 Subtotal $394,459,000
16
22 Subtotal $528,974,000
008
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit
Exhibit6 Page
Page910ofof
14589
8 Subtotal $241,000
16 Subtotal $3,483,000
17
22 Subtotal $6,593,000
009
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page10
11ofof145
89
6 Subtotal $3,344,000
11 Subtotal $4,777,000
12
18 Subtotal $31,141,000
19
010
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page11
12ofof145
89
1 Subtotal $234,000
7 Subtotal $735,000
12 Subtotal $201,000
13
19 Subtotal $11,913,000
20
011
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page12
13ofof145
89
1 Subtotal $391,000
9 Subtotal $2,733,000
10
20 Subtotal $35,206,000
21
012
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page13
14ofof145
89
4 Subtotal $944,000
12 Subtotal $1,725,000
13
19 Subtotal $491,000
20
013
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page14
15ofof145
89
7 Subtotal $8,859,000
11 Subtotal $800,000
12
16 Subtotal $381,000
17
014
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page15
16ofof145
89
2 Subtotal $1,811,000
11 Subtotal $7,126,000
12
015
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page16
17ofof145
89
2 Subtotal $5,983,000
11 Subtotal $3,064,000
12
20 Subtotal $3,992,000
21
016
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page17
18ofof145
89
7 Subtotal $2,229,000
14 Subtotal $10,929,000
15
017
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page18
19ofof145
89
1 Subtotal $1,367,000
3 46 Departamento de Agricultura
12 Subtotal $20,756,000
13
19 Subtotal $11,382,000
20
018
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page19
20ofof145
89
8 Subtotal $373,323,000
14 Subtotal $1,238,000
15
16 50 Departamento de Educación
019
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page20
21ofof145
89
16 Subtotal $2,479,487,000
17
18 51 Departamento de Estado
020
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page21
22ofof145
89
6 Subtotal $6,267,000
8 52 Departamento de Hacienda
021
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page22
23ofof145
89
2 funcionamiento $405,000
3 Subtotal $167,791,000
5 53 Departamento de Justicia
16 Subtotal $123,582,000
17
022
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page23
24ofof145
89
4 Subtotal $40,620,000
9 Subtotal $2,059,000
10
11 56 Departamento de Salud
21 Subtotal $238,169,000
22
023
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page24
25ofof145
89
2 Administración de Desastres
10 Subtotal $7,228,000
11
21 Subtotal $62,834,000
22
024
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page25
26ofof145
89
7 Subtotal $18,283,000
17 Subtotal $14,803,000
18
025
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page26
27ofof145
89
14 Subtotal $887,280,000
15
026
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page27
28ofof145
89
3 Subtotal $45,287,000
5 63 Departamento de la Vivienda
12 Subtotal $20,201,000
13
22 Subtotal $33,274,000
027
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page28
29ofof145
89
10 Subtotal $18,615,000
11
19 Subtotal $10,173,000
20
028
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page29
30ofof145
89
4 Subtotal $1,903,000
12 Subtotal $12,030,000
13
20 Subtotal $2,352,000
21
22 70 Junta de Planificación
029
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page30
31ofof145
89
7 Subtotal $12,581,000
14 Subtotal $947,000
15
030
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page31
32ofof145
89
1 Subtotal $1,174,000
7 Subtotal $689,000
16 Subtotal $2,352,000
17
21 Subtotal $8,951,000
22
031
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page32
33ofof145
89
8 Subtotal $9,345,000
21 Subtotal $23,338,000
22
032
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page33
34ofof145
89
7 Subtotal $2,135,000
12 Subtotal $39,133,000
13
19 Subtotal $2,691,000
20
033
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page34
35ofof145
89
9 Subtotal $18,205,000
10
19 Subtotal $23,588,000
20
034
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page35
36ofof145
89
7 Subtotal $3,515,000
15 Subtotal $1,747,000
16
22 Subtotal $1,025,000
035
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page36
37ofof145
89
10 Subtotal $2,608,000
11
16 Subtotal $2,468,000
17
18 88 Salud Correccional
036
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page37
38ofof145
89
1 Subtotal $57,872,000
14 Subtotal $40,662,000
15
20 Subtotal $293,253,000
21
037
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page38
39ofof145
89
2 Subtotal $200,000
6 Subtotal $324,000
038
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page39
40ofof145
89
Sección 5.- Todas las asignaciones autorizadas en cualquier año fiscal previo con
cargo al Fondo General, incluyendo las asignaciones sin año económico determinado, quedan por
la presente eliminadas y ningún desembolso de fondos públicos podrá ser cubierto por dichas
asignaciones, excepto: (1) las asignaciones sin año económico para llevar a cabo mejoras
permanentes que hayan sido contabilizadas y llevadas en los libros; y (2) las porciones de las
asignaciones autorizadas para el año fiscal 2018 que han sido obligadas en o antes del 30 de junio
de 2018, y que continuarán en los libros durante 60 días después de vencido el año fiscal 2018 y
no se girará contra dichas asignaciones por ningún concepto después de esos 60 días. Esta
restricción sobre el uso de asignaciones autorizadas en años fiscales previos no aplicará a: (1) los
programas financiados en todo o en parte por fondos federales; o (2) a órdenes de la corte de
distrito con jurisdicción sobre todos los procedimientos relacionados al Título III de PROMESA.
039
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page40
41ofof145
89
Sección 6.- En conjunto con los informes que el Gobernador debe presentar a la Junta
de Supervisión dentro de los 15 días siguientes al último día de cada trimestre del año fiscal según
la Sección 203 de PROMESA, el Director Ejecutivo de la AAFAF y el Director de la OGP le
certificarán a la Junta de Supervisión que no se ha utilizado asignación alguna del año fiscal
anterior para cubrir gasto alguno (con excepción de las asignaciones cubiertas por las excepciones
autorizadas en la Sección 5).
Sección 9.- En conjunto con los informes que el Gobernador debe presentar a la Junta
de Supervisión dentro de los 15 días siguientes al último día de cada trimestre del año fiscal según
la Sección 203 de PROMESA, el Director Ejecutivo de la AAFAF y el Director de la OGP
certificarán a la Junta de Supervisión que ninguna cantidad de la Reserva de Seguro Social ha
sido utilizada para cubrir gasto alguno, excepto que Director Ejecutivo de la AAFAF y el Director
de la OGP certifiquen a la Junta de Supervisión que la condiciones correspondientes descritas en
la Sección 8 se han satisfecho.
040
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page41
42ofof145
89
Sección 13.- En o antes del 31 de julio de 2018, el Gobierno, en conjunto con la Junta
de Supervisión, desarrollará un itinerario de trabajo para el Gobierno presentar y certificar a la
Junta de Supervisión: (1) informes mensuales de ingresos reales en efectivo, gastos reales en
efectivo y flujo de efectivo para cada agencia del Gobierno; (2) informes mensuales y trimestrales
en los que se detallan los resultados reales versus los proyectados de cada agencia gubernamental
basado en una contabilidad modificada de ingresos y pasivos acumulados (modified accrual basis);
(3) informes mensuales y trimestrales sobre la nómina gubernamental, total de empleados y
asistencia, cuentas a pagar a terceros, indicadores clave del desempeño en el procesamiento de
facturas, créditos contributivos, fondos para desastres y aportaciones a retiro; (4) monitoreo
mensual de indicadores claves del desempeño de cada una de las medidas de reforma fiscal y (5)
informes trimestrales sobre el desempeño macroeconómico. No obstante lo anterior, durante el
periodo en el que se desarrolla el itinerario de trabajo antes indicado, el Gobierno presentará y
certificará a la Junta de Supervisión Fiscal todos los informes de liquidez o gastos que pueda
generar basado en la información financiera disponible. Los informes requeridos bajo esta
Sección son adicionales a los informes que tiene que presentar el Gobernador a la Junta de
Supervisión bajo la Sección 203 de PROMESA.
041
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page42
43ofof145
89
de Supervisión en formato de Excel e incluir el detalle de las distribuciones por cada agencia,
corporación pública, fondo, y concepto de gasto. En conjunto con el informe requerido por la
sección 203 de PROMESA que el Gobernador debe proveer a más tardar 15 días después del
último día de cada trimestre del año fiscal, el Gobernador proveerá un análisis de la varianza
trimestral que sea consistente con el método “modified accrual accounting”.
Sección 15.- Si durante el año fiscal el Gobierno incumple con las medidas de
liquidez y ahorros presupuestarios que exige el Nuevo Plan Fiscal para Puerto Rico certificado
por la Junta de Supervisión, el Gobierno tomará todas las acciones correctivas que sean necesarias,
incluyendo las medidas dispuestas en las secciones 203 y 204 de PROMESA.
042
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page43
44ofof145
89
disposición, sección, subsección, título, capítulo, subcapítulo, acápite o parte de esta Resolución
Conjunta fuera invalidada o declarada inconstitucional, la resolución, dictamen o sentencia a tal
efecto dictada no afectará ni invalidará la aplicación del remanente de esta Resolución Conjunta
a aquellas personas o circunstancias en que se pueda aplicar válidamente. Es la voluntad expresa
e inequívoca de esta Asamblea Legislativa que los tribunales hagan cumplir las disposiciones y
la aplicación de esta Resolución Conjunta en la mayor medida posible, aunque se deje sin efecto,
anule, invalide, perjudique o declare inconstitucional alguna de sus partes, o aunque se deje sin
efecto, invalide o declare inconstitucional su aplicación a alguna persona o circunstancia. Esta
Asamblea Legislativa aprobaría esta Resolución Conjunta independientemente de la
determinación de separabilidad que el Tribunal pueda hacer.
043
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page44
45ofof145
89
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page45
46ofof145
89
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page46
47ofof145
89
A- ____
House of Representatives
R. C. of C.
June 30, 2018
Joint Resolution
To allocate the amount of six billion nine hundred and ninety-one million one
hundred fifty-five thousand dollars ($6,991,155,000), under the General Fund of the
State Treasury, for regular operating costs of the programs and agencies that make
up the Executive Branch and the programs that make up the Judicial Branch and
the Legislative Branch during the fiscal year ending 30 June 2019, the following
amounts or any portions of those amounts that are necessary, and for other related
purposes.
Section 1.- The sum of six billion nine hundred and ninety-one million
one hundred fifty-five thousand dollars ($6,991,155,000), is assigned to the General
Fund of the State Treasury, for regular operating expenses of the programs and
agencies of the Executive Branch and the programs that make up the Judicial Branch
and the Legislative Branch during the fiscal year ending 30 June 2019, the following
amounts or any portions of those amounts that are necessary, for the purposes that are
outlined below:
001
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page47
48ofof145
89
7 Subtotal $3,308,000
17 Subtotal $84,454,000
18
002
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page48
49ofof145
89
6 Subtotal $191,867,000
16 Subtotal $33,805,000
17
003
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page49
50ofof145
89
5 Subtotal $22,187,000
10 Subtotal $15,199,000
11
Subtotal $92,090,000
004
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page50
51ofof145
89
4 Subtotal $5,988,000
10 Subtotal $96,560,000
11
Subtotal $2,275,000
005
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page51
52ofof145
89
1 Subtotal $8,525,000
12 Subtotal $11,574,000
13
Subtotal $39,376,000
006
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page52
53ofof145
89
9 Subtotal $10,589,000
10
15 Subtotal $70,245,000
16
Subtotal $81,247,000
007
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page53
54ofof145
89
5 Central Office recovery and reconstruction and other related expenses $14,263,000
15 Subtotal $394,459,000
16
Subtotal $528,974,000
008
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page54
55ofof145
89
8 Subtotal $241,000
16 Subtotal $3,483,000
17
Subtotal $6,593,000
009
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page55
56ofof145
89
6 Subtotal $3,344,000
11 Subtotal $4,777,000
12
18 Subtotal $31,141,000
010
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page56
57ofof145
89
1 Subtotal $234,000
4 Roosevelt Roads
7 Subtotal $735,000
12 Subtotal $201,000
13
Subtotal $11,913,000
011
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page57
58ofof145
89
1 Subtotal $391,000
9 Subtotal $2,733,000
10
Subtotal $35,206,000
012
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page58
59ofof145
89
4 Subtotal $944,000
12 Subtotal $1,725,000
13
Subtotal $491,000
013
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page59
60ofof145
89
7 Subtotal $8,859,000
11 Subtotal $800,000
12
16 Subtotal $381,000
17
014
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page60
61ofof145
89
2 Subtotal $1,811,000
11 Subtotal $7,126,000
12
G To provide financial support for the Symphony Orchestra Of Puerto Rico and
015
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page61
62ofof145
89
2 Subtotal $5,983,000
11 Subtotal $3,064,000
12
Subtotal $3,992,000
016
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page62
63ofof145
89
7 Subtotal $2,229,000
14 Subtotal $10,929,000
15
017
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page63
64ofof145
89
1 Subtotal $1,367,000
3 46 Department of Agriculture
12 Subtotal $20,756,000
13
Subtotal $11,382,000
018
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page64
65ofof145
89
8 Subtotal $373,323,000
14 Subtotal $1,238,000
15
16 50 Department of Education
019
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page65
66ofof145
89
13 O To carry out a professional services contract with the Community Schools $3,500,000
16 Subtotal $2,479,487,000
17
18 51 Department of State
020
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page66
67ofof145
89
6 Subtotal $6,267,000
18 expenses $9,800,000
021
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page67
68ofof145
89
2 expenses
3 Subtotal $167,791,000
5 53 Department of Justice
14 J For the exclusive use of the payment of expenses and fees to the
16 Subtotal $123,582,000
17
022
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page68
69ofof145
89
4 Subtotal $40,620,000
9 Subtotal $2,059,000
10
11 56 Department of Health
I For the operation of the Puerto Rico Health Information Network $2,200,000
Subtotal $238,169,000
023
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page69
70ofof145
89
2 Management
10 Subtotal $7,228,000
11
Subtotal $62,834,000
024
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page70
71ofof145
89
7 Subtotal $18,283,000
17 Subtotal $14,803,000
18
025
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page71
72ofof145
89
8 related costs
10 L For Expenses related to the police department reform and related engineering
12 consulting and any other expenditures deemed useful and relevant to the
13 reform $20,000,000
14 Subtotal $887,280,000
15
026
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page72
73ofof145
89
3 Subtotal $45,287,000
5 63 Department of Housing
12 Subtotal $20,201,000
13
Subtotal $33,274,000
027
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page73
74ofof145
89
10 Subtotal $18,615,000
11
Subtotal $10,173,000
028
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page74
75ofof145
89
4 Subtotal $1,903,000
12 Subtotal $12,030,000
13
Subtotal $2,352,000
70 Planning Board
029
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page75
76ofof145
89
7 Subtotal $12,581,000
14 Subtotal $947,000
15
030
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page76
77ofof145
89
1 Subtotal $1,174,000
7 Subtotal $689,000
10 Transformation
16 Subtotal $2,352,000
17
Subtotal $8,951,000
031
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page77
78ofof145
89
8 Subtotal $9,345,000
18 H For the operation and development of the online services of pr.gov $500,000
J For the implementation and audit of the Base Zero Budgeting (PBC) $2,000,000
Subtotal $23,338,000
032
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page78
79ofof145
89
7 Subtotal $2,135,000
12 Subtotal $39,133,000
13
Subtotal $2,691,000
033
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page79
80ofof145
89
9 Subtotal $18,205,000
10
Subtotal $23,588,000
034
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page80
81ofof145
89
7 Subtotal $3,515,000
15 Subtotal $1,747,000
16
Subtotal $1,025,000
035
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page81
82ofof145
89
10 Subtotal $2,608,000
11
16 Subtotal $2,468,000
17
18 88 Correctional Health
036
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page82
83ofof145
89
1 Subtotal $57,872,000
14 Subtotal $40,662,000
15
17 A To cover the costs of operation of the Judicial Branch, Law Num. 147 of 18
Subtotal $293,253,000
037
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page83
84ofof145
89
2 Subtotal $200,000
6 Subtotal
10
11
12
13
14
15
16
17
18
038
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page84
85ofof145
89
Section 2.- The Department of the Treasury will remit to the Legislative
Branch and its components, to the Judiciary, to the University of Puerto Rico, and to
the non-profit entities that receive funds from this Resolution, monthly and in
advance, the budgetary allotments corresponding to one twelfth of the annual
allocation provided in this Joint Resolution for each one of these entities. Such one-
twelfth monthly allocation to each entity (except with respect to the Judiciary) shall be
subject to the five percent (5%) withholding set forth in Section 3 below during the
first three quarters of this fiscal year.
Section 4.- No later than 45 days after the closing of each quarter of a
fiscal year, the Secretary of Treasury shall revise the projected net revenues of the
General Fund for the current fiscal year (the “Quarterly Revision”) and notify the
revision to the Director of the OMB, the Governor and the Oversight Board. The
Quarterly Revision shall project future revenues based on actual revenues, and
include revisions to the assumptions used to generate the General Fund’s net revenue
projections.
039
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page85
86ofof145
89
Section 6.- In conjunction with the reports that the Governor must submit
to the Oversight Board no later than 15 days after the last day of each quarter of the
fiscal year pursuant to section 203 of PROMESA, the Executive Director of AAFAF
and the Director of the OMB will certify to the Oversight Board that no assignment of
any previous fiscal year (except for allowances covered by the exceptions authorized
in Section 5) has been used to cover any expense.
Section 9.- In conjunction with the reports that the Governor must submit
to the Oversight Board no later than 15 days after the last day of each quarter of the
fiscal year pursuant to section 203 of PROMESA, the Executive Director of AAFAF
and the Director of the OMB will certify to the Oversight Board that no amount of the
Social Security Reserve has been used to cover any expenses, except that the Executive
Director of the AAFAF and the Director of the OMB certify to the Oversight Board
that the corresponding conditions described in Section 8 have been satisfied.
040
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page86
87ofof145
89
Section 12.- The Office of Management and Budget and the Department
of the Treasury are authorized to establish the necessary mechanisms to ensure that
when implementing the concept of mobility, pursuant to the provisions of Law 8-
2017, as amended, known as the “Puerto Rico Human Resources Management and
Transformation in the Government Act,” the corresponding transfer of funds
allocated to payroll and related costs of said employee are to be carried out
simultaneously.
Section 14.- On or before July 31, 2018, the Governor will provide the
Oversight Board with collections and expenses projections for each quarter of this
fiscal year and these projections must be consistent with the authorized expenditures
in this Joint Resolution (the “Quarterly Projection”). The Quarterly Projection must
be presented to the Oversight Board in Excel format and it must include the details of
the distributions by each agency, public corporation, fund, and expense item. In
conjunction with the report required by section 203 of PROMESA that the Governor
must provide no later than 15 days after the last day of each quarter of the fiscal year,
the Governor will provide an analysis of the quarterly variance, which is consistent
041
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page87
88ofof145
89
Section 15.- If during the fiscal year the government fails to comply with
the liquidity and budgetary savings measures required by the New Fiscal Plan for
Puerto Rico certified by the Oversight Board, the Government shall take all necessary
corrective action, including the measures provided in PROMESA sections 203 and 204.
Section 17.- On or before July 31, 2018, the Director of the OMB will
present the Oversight Board with a copy of the budget certified by the Oversight
Board the format administered by the OMB known as the “Sabana File”. The Sabana
File will be in Excel and it will identify all budgets in the PRIFAS system and in any
other government accounting system, including allocations by agency, public
corporation, instrumentality, type of fund, and expense item.
Section 18.- Any reference in this Joint Resolution to the AAFAF, the
Department of the Treasury, or the OMB, or any of its respective officials, will apply
to any successor thereof.
Section 19.- This Joint Resolution will be carried out in Spanish and
English. If, in the interpretation or application of this Joint Resolution, a conflict
arises between the text in English and the text in Spanish, the English text shall
prevail.
042
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-6 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 6 Page
Page88
89ofof145
89
express and unequivocal will of this Legislative Assembly that the courts enforce the
provisions and the application of this Joint Resolution to the greatest extent possible,
even if any of its parts is set aside, annulled, invalidated, prejudiced, or declared
unconstitutional, or even if its application to any person or circumstance is annulled,
invalidated, or declared unconstitutional. This Legislative Assembly would have
approved this Joint Resolution regardless of the finding of severability that the Court
may make.
Section 21.- This Joint Resolution will be known as the “Joint Resolution
of the General Fund Budget for Fiscal Year 2018-2019”.
Section 22.- This Joint Resolution shall take effect on 1 July 2018.
043
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit
Exhibit 7Page
Page891of
of145
57
EXHIBIT 7
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit
Exhibit 7Page
Page902of
of145
57
A-
Cámara de Representantes
R. C. de la C.
30 de junio de 2018
Resolución Conjunta
Para asignar la cantidad de mil setecientos sesenta y seis millones trecientos sesenta
y nueve mil dólares ($ 1,766,369,000) a las agencias e instrumentalidades públicas, con el fin
de desarrollar programas o actividades especiales, permanentes o temporeras para el Año
Fiscal 2018-2019; y para autorizar la transferencia de fondos entre las agencias; disponer la
presentación de un informe trimestral de las transferencias realizadas; disponer que las
asignaciones incluidas en el Presupuesto serán únicamente aquellas que están en vigor y
que de forma alguna no se generará deuda por omisión parcial o total; autorizar contratos;
autorizar donaciones; ordenarle a las entidades sin fines de lucro a presentar informes
semestrales sobre el uso de los fondos aquí asignados; autorizar la retención de pagos por
varios conceptos; autorizar la creación de un mecanismo de control para cumplir con las
reservas en la contratación del Gobierno; autorizar el pareo de fondos asignados; autorizar
la creación de ciertas reservas presupuestarias bajo la custodia de la Oficina de Gerencia y
Presupuesto; y para otros propósitos relacionados.
Sección 1.- Se asigna la cantidad de mil setecientos sesenta y seis millones trecientos
sesenta y nueve mil dólares ($ 1,766,369,000) al Fondo General del Tesoro Estatal, para el
desarrollo de programas o actividades de carácter especial y/o gastos ordinarios de
funcionamiento de los programas y agencias que componen la Rama Ejecutiva y los programas
que componen la Rama Judicial y la Rama Legislativa durante el año fiscal que concluye el 30 de
junio de 2019, en las siguientes cantidades o la porción de las mismas que fuese necesaria, para
los propósitos que se detallan a continuación:
001
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit
Exhibit 7Page
Page913of
of145
57
2 (ACUDEN)
5 Subtotal $150,000
8 (ASSMCA)
002
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit
Exhibit 7Page
Page924of
of145
57
1 Subtotal $7,015,000
15 fide $1,374,000
16 F Para la provisión de abono para cultivo de los agricultores bona fide $5,432,000
003
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit
Exhibit 7Page
Page935of
of145
57
2 Subtotal $41,987,000
6 Subtotal $399,000
10 Subtotal $175,784,000
11
12 6 Asamblea Legislativa
004
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit
Exhibit 7Page
Page946of
of145
57
19 Educación $6,000
005
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit
Exhibit 7Page
Page957of
of145
57
1 Penales $98,000
7 Subtotal $29,986,000
006
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit
Exhibit 7Page
Page968of
of145
57
4 históricos $350,000
5 J Para cubrir los gastos operacionales de Boys and Girls Club $1,242,000
15 y Alcantarillados $72,585,000
16 Subtotal $611,894,000
17
20 Subtotal $4,000,000
21
007
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit
Exhibit 7Page
Page979of
of145
57
6 Subtotal $632,000
13 Agreement $50,000
14 Subtotal $7,050,000
15
18 Subtotal $612,000
19
008
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 7 Page
Page98
10ofof145
57
2 Subtotal $1,000,000
7 Subtotal $71,000
9 14 Departamento de Agricultura
13 Subtotal $14,360,000
14
18 Feliciano $15,640,000
20 doméstica $1,250,000
21 Subtotal $16,890,000
22
009
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit 7 Page
Page99
11ofof145
57
5 Subtotal $1,001,000
7 17 Departamento de Educación
10 Subtotal $2,300,000
11
12 18 Departamento de Hacienda
14 en la RC 726-1995 $7,000
010
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
14:08:37 Desc:
Desc:
Exhibit
Exhibit 7Page
Page100
12of
of145
57
1 en la R. C. 107-2005 $88,000
6 Subtotal $48,302,000
8 19 Departamento de Justicia
13 Subtotal $882,000
14
19 Subtotal $3,710,000
20
011
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
Filed:07/09/18 Entered:07/05/18
Entered:07/09/1813:08:30
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1 Ley Núm. 119-2001, conocida como Ley del Fondo y la Junta para el
3 Completo $300,000
4 Subtotal $300,000
6 22 Departamento de Salud
012
Case:17-03283-LTS
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19 en la RC 68-2010 $70,000
21 2006 $250,000
013
Case:17-03283-LTS
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5 Juntos $2,100,000
014
Case:17-03283-LTS
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5 Subtotal $54,958,000
9 para ser transferidos al Museo de Arte de Puerto Rico para sufragar $1,299,000
12 de funcionamiento $156,000
22 Subtotal $3,577,000
015
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
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7 Permanentes $10,980,000
8 Subtotal $11,980,000
10 25 Junta de Planificación
19 Subtotal $122,000
20
016
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
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1 Subtotal $64,750,000
7 Subtotal $4,000
17 Subtotal $500,000
18
21 Subtotal $216,000
22
017
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
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8 Subtotal $2,250,000
19 beneficios $135,000
21 Subtotal $1,381,000
22
018
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
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8 Subtotal $17,000
22 Rico $12,000
019
Case:17-03283-LTS
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1 Subtotal $2,144,000
6 enmendada $587,136,000
12 enmendada $9,500,000
020
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
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9 Salud $20,900,000
14 Subtotal $645,909,000
15
021
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
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1 Subtotal $10,236,000
022
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
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Sección 5.- Todas las asignaciones autorizadas en cualquier año fiscal previo con
cargo al Fondo General, incluyendo las asignaciones sin año económico determinado, quedan por
la presente eliminadas y ningún desembolso de fondos públicos podrá ser cubierto por dichas
asignaciones, excepto: (1) las asignaciones sin año económico para llevar a cabo mejoras
permanentes que hayan sido contabilizadas y llevadas en los libros; y (2) las porciones de las
asignaciones autorizadas para el año fiscal 2018 que han sido obligadas en o antes del 30 de junio
de 2018, y que continuarán en los libros durante 60 días después de vencido el año fiscal 2018, y
no se girará contra dichas asignaciones por ningún concepto después de esos 60 días. Esta
restricción sobre el uso de asignaciones autorizadas en años fiscales previos no aplicará a: (1) los
programas financiados en todo o en parte por fondos federales; o (2) a órdenes de la corte de
distrito con jurisdicción sobre todos los procedimientos relacionados al Título III de PROMESA.
023
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
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Sección 6.- En conjunto con los informes que el Gobernador debe presentar a la Junta
de Supervisión dentro de los 15 días siguientes al último día de cada trimestre del año fiscal según
la Sección 203 de PROMESA, el Director Ejecutivo de la Autoridad de Asesoría Financiera y
Agencia Fiscal (“AAFAF”) y el Director de la OGP le certificarán a la Junta de Supervisión que no
se ha utilizado asignación alguna del año fiscal anterior para cubrir gasto alguno (con excepción
de las asignaciones cubiertas por las excepciones autorizadas en la Sección 5).
Sección 9.- Como regla necesaria para el desembolso responsable de las asignaciones
presupuestarias para gastos de funcionamiento y otros gastos durante el término de esta
Resolución Conjunta, la OGP podrá retener de cualquiera de las asignaciones a las agencias de la
Rama Ejecutiva las cantidades necesarias para el pago de las aportaciones de retiro (pay-go
contribution), seguro por desempleo, o contribuciones que se le hayan retenido a sus empleados,
si la OGP determina que dicha retención es necesaria para asegurar el cumplimiento por parte de
las agencias correspondientes con estas obligaciones. Tales cantidades retenidas por la OGP se
reprogramarán solamente para el pago de las obligaciones impagadas correspondientes en
relación con las aportaciones al retiro, el seguro por desempleo o la contribución retenida a los
empleados según permitido por esta Sección.
024
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
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Sección 12.-En o antes del 31 de julio de 2018, el Gobierno, en conjunto con la Junta
de Supervisión, desarrollará un itinerario de trabajo para el Gobierno presentar y certificar a la
Junta de Supervisión: (1) informes mensuales de ingresos reales en efectivo, gastos reales en
efectivo y flujo de efectivo para cada agencia del Gobierno; (2) informes mensuales y trimestrales
en los que se detallen los resultados reales versus los proyectados de cada agencia gubernamental
basado en una contabilidad modificada de ingresos y pasivos acumulados (modified accrual basis);
(3) informes mensuales y trimestrales sobre la nómina gubernamental, total de empleados y
asistencia, cuentas a pagar a terceros, indicadores clave del desempeño en el procesamiento de
facturas, créditos contributivos, fondos para desastres y aportaciones a retiro; (4) monitoreo
mensual de indicadores claves del desempeño de cada una de las medidas de reforma fiscal y (5)
informes trimestrales sobre el desempeño macroeconómico. No obstante lo anterior, durante el
periodo en el que se desarrolla el itinerario de trabajo antes indicado, el Gobierno presentará y
certificará a la Junta de Supervisión todos los informes de liquidez o gastos que pueda generar
basado en la información financiera disponible. Los informes requeridos bajo esta Sección son
adicionales a los informes que tiene que someter el Gobernador a la Junta de Supervisión bajo la
Sección 203 de PROMESA.
Sección 14.- Si durante el año fiscal el Gobierno incumple con las medidas de
liquidez y ahorros presupuestarios que exige el Nuevo Plan Fiscal para Puerto Rico certificado
por la Junta de Supervisión, el Gobierno tomará todas las acciones correctivas que sean necesarias,
incluyendo las medidas dispuestas en las secciones 203 y 204 de PROMESA.
025
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
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gaste ni obligue suma alguna que exceda de las asignaciones autorizadas para dicho año. Esta
prohibición aplica a todas las asignaciones establecidas en esta Resolución Conjunta, incluyendo
las asignaciones para el pago de nómina y costos relacionados. Toda violación a esta prohibición
constituirá una violación a esta Resolución Conjunta que rige el año fiscal 2019 y a la Ley 230-
1974.
026
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
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027
Case:17-03283-LTS
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Case:17-03283-LTS
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Case:17-03283-LTS
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A- ____
House of Representatives
R. C. of C. ________
June 2018
Joint Resolution
To assign public agencies and instrumentalities one billion eight hundred and
thirty million eight hundred and seventy eight thousand dollars ($1,830,878,000) to
develop special, permanent or temporary programs or activities for the 2018-2019
Fiscal Year; authorize the transfer of funds between agencies; provide for the
submission of a quarterly report of made transfers; show the allocations included
in the Budget to be the only ones in force and effect and that no debt whatsoever
will be generated by total or partial omission; to authorize contracts; authorize
donations; order non-profit entities file a semi-annual report on the use of the
allocated funds; authorize the retention of payments under various memos;
authorize the creation of control mechanisms to comply with reserves in
Government procurement; authorize matching of allocated funds; and lastly, for
other relevant purposes as per the above.
Section 1.- The sum of one billion eight hundred and thirty million eight
hundred and seventy eight thousand dollars ($1,830,878,000), is herein allocated to the
General Fund of the State Treasury, for regular operating expenses of the programs
and agencies of the Executive Branch and the programs that make up the Judicial
Branch and the Legislative Branch during the fiscal year ending on June 30 th, 2019 for
the following amounts or any portions of those amounts as required for the purposes
outlined below:
001
Case:17-03283-LTS
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4 Sub-total $150,000
7 A Cover operation costs for Sor Isolina Ferre Center, Inc., Playa de Ponce,
8 RC 183-2005 $1,900,000
F Cover operation costs of Sor Isolina Ferre Center, Inc., Caimito, RC 183-
2005 $250,000
H Cover operation costs of Hogar The Providence, located in Old San Juan $25,000
002
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
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1 Sub-total $7,015,000
5 amendments $7,934,000
E Technical assistance & economic incentives for Bona fide Farmers $1,374,000
003
Case:17-03283-LTS
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2 Sub-total $41,987,000
6 Sub-total $399,000
8 5 Contributions to Municipalities
10 Sub-total $175,784,000
programs $20,000,000
RC 554-1998 $360,000
Commas $130,000
004
Case:17-03283-LTS
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4 services $106,000
7 Comptroller $98,000
review and the revision of the criminal code and for the reform of
005
Case:17-03283-LTS
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5 Sub-total $29,986,000
8 Budget
B Configuring a private data network for the Government of Puerto Rico $800,000
006
Case:17-03283-LTS
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4 artifacts $350,000
5 J Cover the operational costs of the Boys and Girls Club $1,242,000
7 (USACE) $7,077,000
9 M Pay for the PRIFAS Accounting System and costs related to the IT
10 reform $50,000,000
Authority $72,585,000
Subtotal $611,894,000
Sub-total $4,000,000
007
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
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6 Sub-total $632,000
amendments $7,000,000
agreement $50,000
Sub-total $7,050,000
Sub-total $612,000
008
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
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2 Sub-total $1,000,000
7 Sub-total $71,000
milk $14,360,000
Sub-total $14,360,000
Sub-total $16,890,000
009
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
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4 434-2004 $1,000
5 Sub-total $1,001,000
7 17 Department of Education
9 Sub-total $2,300,000
10
Law 184-2014; item under the municipal revenue collection center that
010
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
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5 Sub-total $48,302,000
Sub-total $882,000
Sub-total $3,710,000
011
Case:17-03283-LTS
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2 the Law of the Fund and the Board for the Development of the Puerto
4 Sub-total $300,000
6 22 Department of Health
RC 164-2005 $125,000
treatment $2,860,000
012
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
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3 H Carry out the National Day to be tested for Hepatitis C, Law 42-
4 2003 $150,000
L Operating costs for the Alzheimer’s Disease Register the Act 237-
1999 $25,000
013
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
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2 (LawBIDA) $500,000
5 Together” $2,100,000
8 children. New and existing programs for the diagnosis and treatment
10 quality of training services in the care and child development centers $750,000
014
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
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5 CC Matching Federal Funds, MMI, MFCO and other related expenses $17,111,000
6 Sub-total $47,408,000
015
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
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1 Sub-total $3,577,000
8 Sub-total $11,980,000
amendments $27,000
Law for Joint and Cooperative Agreement Special Fund for Services
Sub-total $122,000
016
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
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1 Sub-total $64,750,000
4 Transformation
7 Sub-total $4,000
Sub-total $1,250,000
Sub-total $500,000
017
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
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2 Sub-total $216,000
3
31 Office of the Governor
4
A Meet the following programming commitments:
5
i. Direct line to the Municipalities $1,000,000
6
ii. Multi-stakeholder permanent dialog forum for the implementation of
7
Law 30-2017 $500,000
8
iii. PR Dashboard $1,000,000
9
iv. FEWG Office $4,000,000
10
v. Implementation of the PROJECT PRITS $7,000,000
Sub-total $13,500,000
2000 $135,000
veterans and their relatives for the protection of their rights and
benefits $135,000
Sub-total $1,381,000
018
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
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9 Sub-total $17,000
10
019
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
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1 Sub-total $2,144,000
amendments $500,000
020
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
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Sub-total $645,909,000
including but not limited to the development of basic, clinical and epidemiological
processes $10,236,000
021
Case:17-03283-LTS
Case:17-03283-LTS Doc#:3454-23
Doc#:3435-7 Filed:07/05/18
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1 Subtotal $10,236,000
10
022
Case:17-03283-LTS
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Section 2.- The Department of the Treasury will remit to the Legislative
Branch and its components, to the Judiciary, to the University of Puerto Rico, and to
the non-profit entities that receive funds from this Resolution, budgetary allotments
both monthly and in advance. This corresponds to one-twelfth of the annual
allocation provided in this Joint Resolution for each entity. Such one-twelfth monthly
allocation to each entity (except with respect to the Judiciary) shall be subject to a five-
percent (5%) withholding during the first three quarters of this fiscal year, as
stipulated in Section 3 below.
Section 4.- No later than 45 days after the closing of each quarter of a
fiscal year, the Secretary of Treasury shall revise the projected net revenues of the
General Fund for the current fiscal year (the “Quarterly Revision”) and notify the
Director of the OMB, the Governor and the Oversight Board, of said revisions. The
Quarterly Revision shall project future revenues based on actual revenues. It shall also
include revisions to the assumptions used to generate the General Fund’s net revenue
projections.
Section 5.- All allocations authorized in any previous fiscal year payable
from the General Fund, including allocations without a specific fiscal year, are hereby
eliminated and no disbursement of public funds may be covered by such allocations,
except: (1) allocations without a specific fiscal year to carry out permanent
improvements that have been accounted for and kept on the books; and (2) the
portion of the allocations authorized for fiscal year 2018 that have been encumbered
on or before June 30th, 2018, which shall be kept in the books for 60 days after the
termination of fiscal year 2018 and after those 60 days no amount shall be drawn
against such portion for any reason. This restriction shall not apply to programs
1financed in whole or in part by federal funds; or (2) to orders of a district court with
jurisdiction over all proceedings related to PROMESA Title III.
2
3
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1 Section 6.- In conjunction with the reports that the Governor must submit
to the Oversight Board no later than 15 days after the last day of each quarter of the
2
fiscal year pursuant to section 203 of PROMESA, the Executive Director of AAFAF
3and the Director of the OMB will certify to the Oversight Board that no allocations of
any previous fiscal year (except for allowances covered by the two exceptions
4
authorized in the previous paragraph of this section) has been used to cover any
5expense.
6
Section 7.- Any power of the OMB, AAFAF or the Department of the
7Treasury, including the authorities granted under Act 230-1974, and its amendments,
known as the “Puerto Rico Government Accounting Act” (“Act 230”), to authorize the
8
reprogramming or extension of allocations of prior fiscal years is hereby suspended.
9Notwithstanding this section, the allocations approved in the budget certified by the
Oversight Board may be modified or reprogrammed upon approval by the Oversight
10
Board.
11
Section 8.- The emergency reserve for the amount of $15,000,000 (the
12“Emergency Reserve”), and the liquidity reserve required by the New Fiscal Plan
13certified by the Oversight Board for the amount of $115,000,000 (the “Fiscal Plan
Reserve”) in the custody of the OMB established in Sub-paragraphs 7(h) and (i) of
14Section 1 of this Joint Resolution, may not be used to cover any allocation or expense
15whatsoever without the approval of the Oversight Board. In conjunction with the
reports that the Governor must submit to the Oversight Board no later than 15-days
after the last day of each quarter of the fiscal year as stipulated in Section 203 of
PROMESA, the Executive Director of the Fiscal Agency and Financial Advisory
Authority (“AAFAF”, by its Spanish acronym) and the Director of OMB will certify to
the Oversight Board that no amount of the: (i) Emergency Reserve or (ii) the Fiscal
Plan Reserve has been used to cover any expenses, unless it has been approved by the
Oversight Board.
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Section 13.- On or before July 31 of 2018, the Governor will provide the
Oversight Board with collections and expenditure projections for each quarter of this
fiscal year, and said projections will be consistent with the costs authorized in this
Joint Resolution (the “Quarterly Projection”). The Quarterly Projection will be
presented to the Oversight Board in Excel format and will include the detail of
distributions by agency, public corporation, fund and item of expenditure. Along with
the report required by section 203 of PROMESA which the Governor must provide at
the latest 15 days after the last day of each quarter in the fiscal year, the Governor will
provide an analysis of the quarterly variance that is consistent with the “modified
accrual accounting” method.
Section 14.- If during the fiscal year the government fails to comply with
the liquidity and budgetary savings measures required by the New Fiscal Plan for
Puerto Rico certified by the Oversight Board, the Government shall take all necessary
corrective action, including the measures provided in PROMESA Sections 203 & 204.
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1certified by the Oversight Board, and the Director of the OMB (and all respective
successors) shall be responsible for not spending or encumbering during fiscal year
2
2019 any amount that exceeds the allocations authorized for each corresponding year.
3This prohibition applies to every allocation set forth in this Joint Resolution, including
allocations for payroll and related costs. Any violation of this prohibition shall
4
constitute a violation of this Joint Resolution and Act 230-1974.
5
Section 18.- On or before July 31 of 2018, the Director of the OGP will
6
present to the Oversight Board a copy of the budget certified by the Oversight Board
7in the format used by OGP known as “Sabana File.” The Sabana File will be in Excel
and will identify all budgets in the PRIFAS system and in any other government
8
accounting system, including allocations by agency, public corporation,
9instrumentality, type of fund and item of expenditure.
10
Section 17.- Any reference in this Joint Resolution to the AAFAF, the
11Department of the Treasury, or the OGP, or to any of their officers, will apply to their
successors.
12
13 Section 18.- This Joint Resolution will be adopted in Spanish and in
English. If the interpretation or application of this Joint Resolution suggests any
14
conflict between the English text and the Spanish text, the English text will prevail.
15
Section 19.- If any clause, paragraph, sub-paragraph, sentence, word,
letter, article, provision, section, sub-section, title, chapter, sub-chapter, heading, or
part of this Joint Resolution is annulled or declared unconstitutional, the resolution,
decision, or judgment entered to that effect will not affect, harm, or invalidate the
remainder of the Joint Resolution. The effect of such judgment will be limited to the
clause, paragraph, sub-paragraph, sentence, word, letter, article, provision, section,
sub-section, title, chapter, sub-chapter, heading, or part thereof that has been annulled
or declared unconstitutional. If the application to a person or circumstance of any
clause, paragraph, sub-paragraph, sentence, word, article, provision, section, sub-
section, title, chapter, sub-chapter, heading, or part of this Joint Resolution is
invalidated or declared unconstitutional, the decision, opinion, or judgment entered
to that effect will not affect or invalidate the application of the remainder of this Joint
Resolution to those persons or circumstances in which it can validly apply. It is the
express and unequivocal will of this Legislature that the courts enforce the provisions
and the application of this Joint Resolution to the greatest extent possible, even if any
of its parts is set aside, annulled, invalidated, prejudiced, or declared unconstitutional,
or even if its application to any person or circumstance is annulled, invalidated, or
declared unconstitutional. This Legislature would have approved this Joint Resolution
regardless of the finding of severability that the Court may make.
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1 Section 21.- This Joint Resolution shall take effect as of July 1st, 2018.
2
3
4
5
6
7
8
9
10
11
12
13
14
15
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Case:17-03283-LTS Doc#:3454-24 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons Ana J. Matos Santos Page 1 of 2
Case:17-03283-LTS Doc#:3454-24 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons Ana J. Matos Santos Page 2 of 2
Case:17-03283-LTS Doc#:3454-25 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons Andrew G. Biggs Page 1 of 2
Case:17-03283-LTS Doc#:3454-25 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons Andrew G. Biggs Page 2 of 2
Case:17-03283-LTS Doc#:3454-26 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons Arthur J. Gonzalez Page 1 of 2
Case:17-03283-LTS Doc#:3454-26 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons Arthur J. Gonzalez Page 2 of 2
Case:17-03283-LTS Doc#:3454-27 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons Carlos M. Garcia Page 1 of 2
Case:17-03283-LTS Doc#:3454-27 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons Carlos M. Garcia Page 2 of 2
Case:17-03283-LTS Doc#:3454-28 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons David A. Skeel Page 1 of 2
Case:17-03283-LTS Doc#:3454-28 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons David A. Skeel Page 2 of 2
Case:17-03283-LTS Doc#:3454-29 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons FOMB Page 1 of 2
Case:17-03283-LTS Doc#:3454-29 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons FOMB Page 2 of 2
Case:17-03283-LTS Doc#:3454-30 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons Jose B. Carrion Page 1 of 2
Case:17-03283-LTS Doc#:3454-30 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons Jose B. Carrion Page 2 of 2
Case:17-03283-LTS Doc#:3454-31 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons Jose R. Gonzalez Page 1 of 2
Case:17-03283-LTS Doc#:3454-31 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons Jose R. Gonzalez Page 2 of 2
Case:17-03283-LTS Doc#:3454-32 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons Natalie A. Jaresko Page 1 of 2
Case:17-03283-LTS Doc#:3454-32 Filed:07/09/18 Entered:07/09/18 14:08:37 Desc:
Appendix Summons Natalie A. Jaresko Page 2 of 2