Bill Text: NJ SCR38 | 2016-2017 | Regular Session | Introduced
Bill Title: Urges United States Congress to approve "Puerto Rico Chapter 9 Uniformity Act of 2015."
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Engrossed - Dead) 2016-02-16 - Received in the Assembly, Referred to Assembly State and Local Government Committee [SCR38 Detail]
Download: New_Jersey-2016-SCR38-Introduced.html
SENATE CONCURRENT RESOLUTION No. 38
STATE OF NEW JERSEY
217th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2016 SESSION
Sponsored by:
Senator NILSA CRUZ-PEREZ
District 5 (Camden and Gloucester)
Senator NELLIE POU
District 35 (Bergen and Passaic)
Senator M. TERESA RUIZ
District 29 (Essex)
SYNOPSIS
Urges United States Congress to approve "Puerto Rico Chapter 9 Uniformity Act of 2015."
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
A Concurrent Resolution urging the United States Congress to approve the "Puerto Rico Chapter 9 Uniformity Act of 2015."
Whereas, The "Puerto Rico Chapter 9 Uniformity Act of 2015," pending before the United States Congress as H.R.870 and S.1774, would empower the Commonwealth of Puerto Rico to authorize one or more of its municipal governments or government-owned corporations to restructure their debts under Chapter 9 of the federal bankruptcy code if they become insolvent, as all state governments are already empowered to do under current federal law; and
Whereas, Because Chapter 9 currently does not apply to Puerto Rico, the Commonwealth attempted to construct its own law for dealing with its fiscal problems, the "Puerto Rico Public Corporation Debt Enforcement and Recovery Act," for use by the Puerto Rico Electric Power Authority (PREPA) and a number of other public corporations; and
Whereas, The Recovery Act was viewed by the United States municipal bond market as unfair to bondholders, leading some bondholders to sue alleging the Recovery Act was "preempted by Section 903 of the federal bankruptcy code and therefore void pursuant to the supremacy clause of the United States Constitution," an argument with which the United States District Court for the District of Puerto Rico agreed, thereby holding the law unconstitutional; and
Whereas, The narrow, simple, and straightforward purpose of H.R. 870 and S.1774 is to provide a last resort solution for municipalities in Puerto Rico by permitting the Commonwealth to authorize its municipalities and public utilities to file for Chapter 9, as needed, in the same way that the states are authorized; and
Whereas, History has shown that economies in financial distress at the local, state, or national level need a recovery plan that stimulates economic activity and improves appeal to investors in order to move once again toward prosperity, and H.R.870 and S.1774 provide the American citizens of Puerto Rico with access to the beginning of such a recovery plan by offering a way to restructure PREPA's debt and that of any other government, corporation, or struggling municipality in which United States bondholders are invested; and
Whereas, The presence in the State of New Jersey of over 430,000 people born in Puerto Rico or of Puerto Rican descent, constituting approximately five percent of the State's population, as well as concern felt by all New Jerseyans for the wellbeing of all American citizens wherever they may be, compel the Legislature to call upon Congress to take such measures as may be reasonable and practicable to alleviate the financial distress being experienced by the people of Puerto Rico, specifically through the speedy enactment of H.R.870 and S.1774; now, therefore,
Be It Resolved by the Senate of the State of New Jersey (the General Assembly concurring):
1. The Legislature hereby calls upon the Congress of the United States to enact the "Puerto Rico Chapter 9 Uniformity Act of 2015," pending as H.R.870 and S.1774, and asks all members of the New Jersey Congressional delegation to support this important legislation.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly or the Secretary of the Senate to the presiding officers of both Houses of Congress, to the sponsors of H.R.870 and S.1774, and to each member of Congress elected from this State.
STATEMENT
This resolution urges the United States Congress to approve the "Puerto Rico Chapter 9 Uniformity Act of 2015," pending as H.R.870 and S.1774. These bills would empower the Commonwealth of Puerto Rico to authorize one or more of its municipal governments or government-owned corporations to restructure their debts under Chapter 9 of the federal bankruptcy code if they become insolvent, as all state governments are already empowered to do under current federal law.
