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“PROVIDING FOR CONSIDERATION OF H.R. 5278, PUERTO RICO OVERSIGHT, MANAGEMENT, AND ECONOMIC STABILITY ACT” mentioning the U.S. Dept of Labor was published in the House of Representatives section on pages H3581-H3586 on June 9, 2016.
The publication is reproduced in full below:
PROVIDING FOR CONSIDERATION OF H.R. 5278, PUERTO RICO OVERSIGHT,
MANAGEMENT, AND ECONOMIC STABILITY ACT
Mr. BYRNE. Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 770 and ask for its immediate consideration.
The Clerk read the resolution, as follows:
H. Res. 770
Resolved, That at any time after adoption of this resolution the Speaker may, pursuant to clause 2(b) of rule XVIII, declare the House resolved into the Committee of the Whole House on the state of the Union for consideration of the bill (H.R. 5278) to establish an Oversight Board to assist the Government of Puerto Rico, including instrumentalities, in managing its public finances, and for other purposes. The first reading of the bill shall be dispensed with. All points of order against consideration of the bill are waived. General debate shall be confined to the bill and amendments specified in this section and shall not exceed one hour equally divided and controlled by the chair and ranking minority member of the Committee on Natural Resources. After general debate the bill shall be considered for amendment under the five-minute rule. In lieu of the amendment in the nature of a substitute recommended by the Committee on Natural Resources now printed in the bill, it shall be in order to consider as an original bill for the purpose of amendment under the five-minute rule an amendment in the nature of a substitute consisting of the text of Rules Committee Print 114-57. That amendment in the nature of a substitute shall be considered as read. All points of order against that amendment in the nature of a substitute are waived. No amendment to that amendment in the nature of a substitute shall be in order except those printed in the report of the Committee on Rules accompanying this resolution. Each such amendment may be offered only in the order printed in the report, may be offered only by a Member designated in the report, shall be considered as read, shall be debatable for the time specified in the report equally divided and controlled by the proponent and an opponent, shall not be subject to amendment, and shall not be subject to a demand for division of the question in the House or in the Committee of the Whole. All points of order against such amendments are waived. At the conclusion of consideration of the bill for amendment the Committee shall rise and report the bill to the House with such amendments as may have been adopted. Any Member may demand a separate vote in the House on any amendment adopted in the Committee of the Whole to the bill or to the amendment in the nature of a substitute made in order as original text. The previous question shall be considered as ordered on the bill and amendments thereto to final passage without intervening motion except one motion to recommit with or without instructions.
Sec. 2. Upon passage of H.R. 5278 the House shall be considered to have: (1) stricken all after the enacting clause of S. 2328 and inserted in lieu thereof the provisions of H.R. 5278, as passed by the House; and (2) passed the Senate bill as so amended.
The SPEAKER pro tempore (Mr. Duncan of Tennessee). The gentleman from Alabama is recognized for 1 hour.
Mr. BYRNE. Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from Florida (Mr. Hastings), pending which I yield myself such time as I may consume. During consideration of this resolution, all time yielded is for the purpose of debate only.
General Leave
Mr. BYRNE. Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks.
The SPEAKER pro tempore. Is there objection to the request of the gentleman from Alabama?
There was no objection.
Mr. BYRNE. Mr. Speaker, House Resolution 770 provides for consideration of H.R. 5278, the Puerto Rico Oversight, Management, and Economic Stability Act, or PROMESA. The resolution provides for a structured rule and makes in order eight amendments.
This bill addresses a very serious issue as it relates to the financial situation in Puerto Rico. The Government of Puerto Rico has racked up over $118 billion in debt. They have already defaulted on portions of their debt in May, and they face another deadline on July 1. The territory has reached a point where they can no longer meet the basic demands of their citizens.
The Constitution makes clear that Congress has the authority over territories. Article IV, section 3, clause 2 of the Constitution states: ``The Congress shall have Power to dispose of and make all needful Rules and Regulations respecting the Territory or other Property belonging to the United States . . . ''
After hearing calls for greater autonomy, in 1950 Congress recognized Puerto Rico's authority over internal matters through passage of the Federal Relations Act. Congress also approved Puerto Rico's constitution in 1952.
So we gave them the control they demanded, and with that, they attempted to become a liberal paradise by raising taxes, expanding government programs, and spending at unsustainable rates. To help pay for these policies, Puerto Rico issued billions of dollars in bonded debt that they can no longer pay back. Now they are demanding help, which puts Congress in a very difficult position.
The fact that we have reached this point is a direct result of the President and the Treasury Department being asleep at the switch. They either were not paying attention to the financial situation in Puerto Rico or they were paying attention and chose to do nothing.
I want to highlight a few important things about this bill. First, this bill is not a bailout. The American taxpayers did not create this problem, and we shouldn't send their money to something they did not cause.
What really worries me is that if Congress doesn't act on this legislation, then we will find ourselves in a position at some point facing serious pressure to vote on a true actual bailout of Puerto Rico. That would be a grave mistake.
As the president of Americans for Tax Reform noted in an op-ed for the National Review, ``Congress needs to step in now; otherwise, a huge taxpayer bailout is the likely outcome. PROMESA is the best, most fiscally responsible way to prevent a bailout from occurring.''
This bill does not include a single penny in taxpayer money. In fact, the Congressional Budget Office found that this bill would have ``no significant net effect on the Federal deficit.'' So let's try and get this problem resolved in a fiscally responsible way that does not use taxpayer dollars.
Second, the policies in Puerto Rico have led to this problem, so it is important that the legislation address some of these policies and require greater accountability. The bill does this through the creation of a seven-person financial oversight board which is responsible for the development of budgets and fiscal plans for Puerto Rico.
The bill also includes some commonsense policy changes that will hopefully ease the burdens on the Puerto Rican Government by prohibiting the costly new overtime rule from taking effect and giving them flexibility with minimum wage requirements for young workers.
Through better oversight and regulatory reforms, it is my belief the Puerto Rican economy can grow and the country can get back on a more stable financial footing.
I want to make one thing very clear. I and every Member of this House have great empathy and appreciation for the Puerto Rican people because they did not cause this problem. I have had the honor of traveling to Puerto Rico and visiting this beautiful place. I enjoyed meeting the people and really appreciated their hospitality. I believe it is important we do what we can in a responsible manner to support the Puerto Rican people.
Ultimately, I wish this legislation wasn't necessary, but the reality of the situation demands action. So I call on my colleagues to support this rule, support the underlying bill, and let's address this problem in a responsible way without a bailout.
Mr. Speaker, I reserve the balance of my time.
Mr. HASTINGS. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I thank my friend, the gentleman from Alabama, for yielding me the customary 30 minutes for debate.
The people of the Commonwealth of Puerto Rico face an urgent fiscal crisis, and this institution's delay in addressing this crisis has left the United States citizens on that island in dire straits.
In June of 2015, Puerto Rico's Governor stated that the Commonwealth would not be able to pay its debts. Now Puerto Rico faces a $2 billion interest and principal payment on July 1. It is unlikely the Commonwealth will be able to make this payment. So I am pleased that, finally, after a full year, this body has decided that the citizens in the Commonwealth deserve relief from this growing humanitarian disaster.
However, now that legislation has been brought forward to deal with this issue, I fear that the solution to this problem presented here will hobble the workers of Puerto Rico for some time to come. While the bill accomplishes much by way of addressing the debt crisis in Puerto Rico, it also hamstrings workers by expanding the subminimum wage on the island.
This legislation expands the application of the Federal subminimum wage to those under 25 years old and extends the application of this subminimum wage to those workers from 90 days to up to 4 years. Just for reference, the subminimum wage that will now be subjected to workers 25 years old and younger and for up to 4 years is $4.25 an hour--$4.25 an hour--a full $3 per hour less than the workers in the States make when, indeed, the workers in the United States ought be making $15 an hour.
The bill would also delay implementation of the Department of Labor's rule on overtime pay until the GAO completes a study, which could take up to 2 years. This means that under the provisions of this bill, the young people of Puerto Rico will be paid a subminimum wage, and the rest of the workers on the island will not be eligible for the new overtime rules, losing out on hard-earned money for working long hours.
While some legislative solution is necessary in order to responsibly address Puerto Rico's debt crisis, these provisions are unconscionable. It is long past time that we start treating our fellow citizens in the Commonwealth of Puerto Rico--as well as the District of Columbia and the Virgin Islands and American Samoa and Guam and the Marianas--with dignity and respect, not with provisions to limit their ability to earn the same amount of money for their hard work as any other American. It is all right for them to go to war and die--and they do in sometimes disproportionate numbers--but we don't want to see to it that they receive an appropriate wage.
Also disconcerting to me is what is not found in the bill, which is any money to address the Zika virus on the island. Make no mistake, the fiscal situation and the response to this virus are linked. I know that there will be some that will argue that the House passed $633 million, the Senate passed $1.2 billion, and they will go to conference, but I am talking specifically about this financial crisis and Puerto Rico's problem.
Given the financial situation on the island, there are grave concerns about the Commonwealth's ability to handle an outbreak of the virus. Already there are over 1,000 local cases of Zika in Puerto Rico. To put that in perspective, there are today just over 600 cases in the continental United States, and nearly all of those are travel-related.
As we move further into the summer and into the mosquito season, I fear that what is already a fiscal crisis could turn into a growing health crisis as the economically stressed island will be left with little resources to deal with the virus and a Congress that is unwilling to adequately fund a response.
These wage and overtime provisions will do nothing but increase poverty and force more Puerto Ricans to leave the island. This bill may take steps to right the Puerto Rican economy, which is currently in shambles, but at what cost? Treating the young and the workers of Puerto Rico as second and third class citizens?
Mr. Speaker, I reserve the balance of my time.
Mr. BYRNE. Mr. Speaker, I yield myself such time as I may consume.
The gentleman from Florida (Mr. Hastings), my colleague on the Committee on Rules, brings up two very important issues. Indeed, nothing in this bill would require people to pay the subminimum wage. It simply allows it. It provides it as an alternative.
{time} 1245
I think this is a situation where Puerto Rico is going to need all the alternatives it can possibly have at its disposal to deal with what is truly a devastating fiscal problem and a devastating economic problem, which gets to a second point he brought up.
When you have a breakdown in the economy, as you have got, and a breakdown in the government's financing, as we have got in Puerto Rico, it has dramatic effects in other parts of society. We are already seeing a breakdown in their hospitals and their ability to deliver health care. And education, for that matter.
So the best way we can address healthcare problems, whether it is Zika or something else or the other myriad of problems that result from this, is to get this bill passed and get Puerto Rico quickly on the road to recovery, both fiscally and economically.
I heard my friend's comments. I understand them. But the best way to get where we are trying to go is to give Puerto Rican people the most options we can to deal with this problem and also get them on the road as quickly as we can. And that is what the bill is designed to do.
Mr. Speaker, I reserve the balance of my time.
Mr. HASTINGS. Mr. Speaker, I yield 5 minutes to the gentleman from Puerto Rico (Mr. Pierluisi) who really knows Puerto Rico, in light of the fact that he is the Congressman representing Puerto Rico.
Mr. PIERLUISI. Mr. Speaker, in the last year and a half, this Congress has held nine hearings on Puerto Rico, a U.S. territory, home to 3.4 million American citizens. These hearings confirmed that Puerto Rico is in jeopardy right now. Not next year. Now.
Island residents are relocating to the States in unprecedented numbers. The Puerto Rican Government is on the brink of collapse, a victim of decades of inequality at the Federal level and mismanagement at the local level.
The government and its instrumentalities have $70 billion in bonded debt, three public entities on the island have already defaulted on payments to creditors, and larger defaults appear imminent. Puerto Rico's three main pension systems are severely underfunded, placing at risk the retirement security of over 330,000 individuals. The government of Puerto Rico has lost access to the credit markets, so it cannot borrow money to meet current obligations.
All objective observers, including virtually every major editorial board in the Nation, understand that the government of Puerto Rico must restructure its debts--ideally, through voluntary agreements with creditors, but through a court-supervised process, if necessary. It is regrettable that we have reached this point, but it is reality. We must confront this challenge with courage and candor.
PROMESA gives Puerto Rico the critical tool it lacks; namely, a legal mechanism to restructure its debts in an orderly way, ensuring the sacrifice will be shared in a fair and equitable manner.
Without PROMESA, the Puerto Rican Government is likely to collapse, participants in pension plans will be terribly damaged, and most bondholders could lose their investments. Absent this bill, almost nobody wins and nearly everybody loses.
Now, PROMESA pairs debt restructuring authority with the creation of an independent oversight board to help the Puerto Rican Government better manage its public finances, balance its budgets, become more efficient and transparent, and regain access to the credit markets.
There are some Puerto Rican politicians who seek broad debt restructuring authority from Congress, but oppose an oversight board. This is not a realistic option, and would result in Puerto Rico receiving nothing.
I fully understand the importance of democracy and dignity. As a lifelong advocate for statehood for Puerto Rico, I want full democratic rights for the island on both the national and local level, not fewer democratic rights.
My test from day one has been that the board should have the authority to oversee, but not to command and control, the Government of Puerto Rico. PROMESA meets this test.
After intensive negotiations, the bill establishes a reasonable board with powers far less potent than the powers that Congress gave the board it established for the District of Columbia in 1995. If the Puerto Rican Government does its job well, the board will have a limited role and will cease to operate within a few years.
PROMESA, like any product of bipartisan compromise, is not perfect. For instance, the minimum wage provision is deeply misguided, and I support Mrs. Torres' amendment to remove it from the bill.
I will explain it in plain language. It makes no sense to apply a different Federal minimum wage to Puerto Rico, because it simply encourages Puerto Ricans to migrate to the States or otherwise not to seek a job and rely on government assistance.
Nevertheless, I should say that there is almost zero chance this provision will affect a single worker in Puerto Rico, since the government will retain the ability to prevent its use.
This bill is the best chance we have to solve the immediate fiscal crisis in Puerto Rico and to place the island on the path to a brighter future. I urge my colleagues to vote ``yes'' on the bill.
Mr. BYRNE. Mr. Speaker, I yield myself such time as I may consume.
I appreciate the remarks of the gentleman from Puerto Rico. I hope he was in the Chamber and he heard words that I said. Everybody in this House stands with the people of Puerto Rico. Our hearts go out for them. This is a very difficult situation.
He used a very strong phrase. He said that they are on the brink of collapse. And I agree with my friend from Florida: no one would know better than the gentleman from Puerto Rico. We want to keep them from collapsing.
There are many of us on this side that would rather do nothing, but we understand that there has to be some responsibility here. And so this is an effort to exercise responsibility in a fiscally sound way, and I believe that is what this does.
So I appreciate the gentleman's remarks. This is an urgent time for him and his people, and it is time for us to act.
Mr. Speaker, I reserve the balance of my time.
Mr. HASTINGS. Mr. Speaker, when I came to Congress in 1993, among the first people that I met and got to know and have been fast friends with since, is the gentleman from Illinois (Mr. Gutierrez), my good friend who also has not only great wisdom on the subject of immigration and social policies in this country, but certainly his understanding of Puerto Rico.
I yield 5 minutes to the gentleman from Illinois (Mr. Gutierrez).
Mr. GUTIERREZ. Mr. Speaker, I rise in opposition to the rule and to the underlying bill.
I submitted 10 amendments for consideration, and not one of them was ruled in order to be debated today by my colleagues.
But I don't oppose the bill because I didn't get an amendment in here. The fact that my amendments were deemed unsuitable for debate by the Congress of the United States is an indication of the underlying problems with the bill.
If you can't debate the future of Puerto Rico here in the Congress of the United States, imagine when you give it to seven people unelected by anyone in Puerto Rico or in the United States that can meet in secret. They can meet in secret without informing us of any one of their decisions. If we can't have a debate about Puerto Rico, if it is so important, why not take time to have a debate about the amendments that are offered by people here.
We are engaged today in a wholly undemocratic activity in the world's greatest democracy. We are debating how we will take power from people who are virtually powerless already.
As I have said throughout this debate, Puerto Rico, by virtue of court cases and the Territorial Clause of the Constitution, ``belongs to, but is not a part of the United States.''
I say to all of my colleagues: treat them with dignity, with respect. Do not put blinders on as though they do not exist.
Yes, the Territorial Clause of the Constitution of the United States says that they are a territory and that, therefore, they are property of the United States of America. But I submit to each and every one of you that they are live human beings with hearts, with souls, and they should demand and receive the respect of any other human. Don't treat them like a piece of trash. Don't treat them like an inanimate object that has no right to dignity and to respect, which is what we are doing here today. I cannot vote for this.
President Obama referred to the special place that Kenya owns in his heart because, he says: It will always be a special place because that is the place of the birth of my father.
Let me submit to you that Puerto Rico is the place of the birth of my father. And I cannot come here and turn my back on the place of the birth of my father with this outrageously undemocratic and this outrageously unfair proposal to the people of Puerto Rico.
Think about it. You are imposing a junta, because that is what they are calling it. There will be no difference between this junta and the junta of Pinochet in Chile, as far as the international community is concerned. And why? Because yesterday--and the Speaker of the House of Puerto Rico is in the gallery--they approved a resolution rejecting this junta. Elected by the people of Puerto Rico. And what does the Congress of the United States, the democracy of the world, say? We don't care.
Today, as we speak, the Senate in Puerto Rico has a resolution rejecting it. And just this past Sunday, every candidate for Governor in Puerto Rico, every last candidate for Governor of Puerto Rico that was successful had in their platform a rejection of PROMESA.
How many times do the people of Puerto Rico have to reject this proposal so that the Congress of the United States treats them with some respect and some dignity?
And I just want to say: Control board? Where was the last control board we know so much about? Flint, Michigan. And what did the control board do? They poisoned the people--American citizens--in Flint.
Let me suggest to you that if you give power to a control board unelected and unsupervised by anyone here, be careful. Be careful. Remember Flint. Remember the poisoning of the people and what the control board did there. That is exactly what we should suspect will happen.
People say: Luis, what is your alternative? Our alternative is quite simple: have a conversation. Not a conversation that begins: we will not spend a penny on the people of Puerto Rico. That is the way our conversation went. We will not. You have to show me a solution in which we do not spend a penny.
Well, let me tell you, we spend money. The Jones Act imposed on the people of Puerto Rico the most expensive merchant marine in the world. It costs $500 million a year. Why don't we lift that from them? We believe in democracy, we believe they should be free. Why don't we lift that from them?
Medicaid and Medicare. Have you seen the reimbursement schedules to Puerto Rico? They pay the same in FICA taxes, but don't receive the same in terms of reimbursements.
In 2006, the wisdom of this Congress was to say to the people of Puerto Rico: we don't care that you are going to lose hundreds of thousands of jobs. We are eliminating section 936 of the Internal Revenue Code that created jobs.
The people of Puerto Rico want jobs. They want jobs and they want the dignity and the respect of being American citizens of this Nation.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. HASTINGS. Mr. Speaker, I yield the gentleman an additional 1 minute.
Mr. GUTIERREZ. And they demand the dignity and the respect that comes. They don't come here on their knees. They are a proud people. They are a people who want to use their creativity and their energy.
This Congress of the United States has said they are a colony. I didn't say that. The Committee on Natural Resources says: we have plenary powers over the people of Puerto Rico. I didn't say that. You said that. If you have plenary powers over the people of Puerto Rico, then assume your responsibility that comes with those plenary powers over the people of Puerto Rico.
Please don't tell me you are going to put Puerto Ricans on the board. I lived in Puerto Rico. I remember when the sugarcane cutters would cut the sugarcane. Let me assure you there were Puerto Ricans in charge of exploiting those workers in the sugarcane field. There have been many times in history when the very same people who have been put in charge exploit their own.
Give us dignity. Give us transparency. Do it at least in the Spanish language so the people can know what is going on. At least King George, when he would come with his decrees--before he burned this building down--would write his decrees in English so that we would understand what he was doing.
The SPEAKER pro tempore. Members are reminded and requested not to refer to occupant of the gallery.
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Mr. BYRNE. Mr. Speaker, I yield 4 minutes to the gentleman from Wisconsin (Mr. Sensenbrenner).
Mr. SENSENBRENNER. Mr. Speaker, I visited Puerto Rico, and believe me when I say the fiscal crisis the island is facing is, in every way, a crisis. Hospitals can't pay their bills. They have closed wings of the hospital. One hospital is $4 million in debt because they haven't paid an electric bill.
Some people will point out that this is largely a crisis of Puerto Rico's own making. They are right; the gentleman from Illinois is wrong.
Puerto Rico has had internal self-government for over 50 years. It wasn't the Congress that forced Puerto Rico to pile up debt after debt after debt after debt; and it wasn't the Congress that tapped Puerto Rico on the shoulder until now and said: You can't sustain this debt.
There already have been two defaults. There is a $2 billion default coming on the 1st of July because they don't have the money to even do their debt service; and despite this dire situation, the Puerto Rican Government has increased its spending on everything except, ironically, debt service.
I see what is happening in Puerto Rico as a cautionary tale for us here in Washington and here in the Congress of the United States.
Now, PROMESA is not rewarding bad behavior. If we wanted to reward bad behavior, we would pay billions of dollars in a taxpayer-financed bailout to finance all of this irresponsible borrowing that has been going on in Puerto Rico.
Significantly, this bill does not commit one penny of taxpayer funds to bail out Puerto Rico. The fiscal oversight board is designed to help Puerto Ricans set their finances in order when they have failed to do so by themselves.
Now, let me say something. I heard the gentleman from Illinois talk about us treating Puerto Rico as a colony. That has not been the case since Mr. Munoz Marin, the legendary Governor of Puerto Rico, persuaded this Congress to give Puerto Rico internal self-government. What has happened here is internal self-government has failed, and that is why we are talking about this today.
I don't think many of my constituents in Wisconsin or Mr. Duffy's constituents or Chairman Bishop's constituents really were concerned about Puerto Rico, but we were; and we stepped up to the plate and offered a solution that has attracted bipartisan support and the support of the administration.
What do we hear from the opponents of this piece of legislation, one of whom just spoke very eloquently? It is wrong. It is bad. We shouldn't do that. We are ignoring the people of Puerto Rico.
Well, we are not doing that. We are making sure in this bill that the pain is shared. If this bill doesn't pass, there is no plan B, and Puerto Rico is going to collapse into an economic morass. There is no plan B.
I haven't heard anything from those who are opposed to this bill on what their alternative is. They have had a year to come up with their alternative, and all they do is make fiery speeches against what has been a very long and patient negotiated process. They are not a part of the solution. They are trying to engender more opposition, and they are a part of the problem.
Pass this rule. Pass this bill. Let's get Puerto Rico back on track, and this is a way to do it with some help from the oversight board.
Puerto Ricans are going to have to do this themselves. They haven't been able to do it without a tap on the shoulder. Too bad there is an oversight board, but that is the only game in town.
Mr. HASTINGS. Mr. Speaker, through you, I will advise my friend from Alabama that I have no further speakers, and I am prepared to close whenever he is.
I reserve the balance of my time.
Mr. BYRNE. Mr. Speaker, I yield 5 minutes to another gentleman from Wisconsin (Mr. Duffy), the sponsor of this bill.
Mr. DUFFY. Mr. Speaker, I appreciate the gentleman from Alabama for yielding.
It is a fascinating debate, where two sides of the political aisle have come together, at the start, from very different vantage points on how to help Puerto Rico but have consistently worked together to find a compromise that all of us think is going to leave Puerto Rico better off than it is today.
I heard the gentleman from Illinois, in his fiery remarks, talking about dignity and respect for the people of Puerto Rico. He was saying that people in Puerto Rico are being treated like trash.
The economic stats are staggering of what is happening in Puerto Rico: the unemployment rate, it is double that of the mainland; the labor participation rate is 20 points lower than the national average; and thousands of people every month are leaving the island because there is not enough economic opportunity.
If you want to talk about dignity and respect, look at the poverty on the island. Look at the despair on the island. I mean, you have families that are being separated because they have no jobs. They can't live in their neighborhoods, in their communities with their families because they can't find an opportunity, so they have to go somewhere else. That is not dignity. That is not respect.
So this Congress has come together with a unified voice to come up with a package that can actually get Puerto Rico on an economic path to prosperity.
Listen, I would love if we can say to the Puerto Rican Government: You guys have to do a better job of managing your debt.
Guess what. It has been a failure, with $73 billion in debt. They can't get their hands around it. The people have lost trust in the government, and so they are saying: If you look at the polls, we want Congress to act. We want Congress to do something. We can't get saved at home. Would the U.S. Congress please step in? Would you please help us out?
They aren't opposed to an oversight board to help manage the finances of the island. They are not opposed to a system to restructure Puerto Rican debt, a system that, by the way, makes sure that the bondholders of Puerto Rican debt will bear the loss, not the American taxpayer, because I think this institution believes that we should have the bondholders bear that loss instead of the American taxpayer.
We don't believe in capitalism on the way up, where you get all the rewards of your investment and bonds, but socialism on the way down, so, if you lose in an investment, the taxpayer will bail you out. That is not what we believe in.
So I guess when I hear opponents who talk about their fathers being born in Puerto Rico and them wanting to die in Puerto Rico, I love the passion, I love the fire, but you have to have a heart and look at what is happening on the island and look at a commonsense, bipartisan solution where you have the President of the United States, the Treasury, the gentleman from Puerto Rico (Mr. Pierluisi), who has been masterful in helping make sure that we stay on target, we understand what is going on on the island, that we understand what will work and what won't work, that we have come together, two different parties, actually, the Speaker of the Puerto Rican House engaging with us on how we are going to fix the island.
One quick last point. This is about debt restructuring. This is about getting the finances in order. But this also has to be about economic growth. You won't have a recovery until you have economic growth. We incent investment on the island.
Though we haven't done enough--there is still more to do--both sides have committed to making sure we come up with a strategy and a plan to make sure we have investment in Puerto Rico, so there is more opportunity, more jobs, more tax revenue, and more prosperity for the Puerto Rican people.
I am proud of the work that this House has done on this bill, the different sides, different views, different opinions that have come together to make this bill happen. I would encourage everyone to support the rule and, later today, support this bill.
Mr. HASTINGS. Mr. Speaker, I yield myself the balance of my time.
There is no doubt that the people of Puerto Rico find themselves in a dire situation, and there is no doubt that this situation has been made worse by the snail's pace with which the majority has seen fit to address the problems facing the people of Puerto Rico.
Though the restructuring of Puerto Rico's debt is certainly needed, I worry that the burdens placed upon the residents of the island, through this bill, really only amount to punting on important issues that we will, nonetheless, have to address somewhere down the road while making these important issues all the more complicated when we do get to the business of actually helping the people of Puerto Rico.
I urge a ``no'' vote on the rule, Mr. Speaker.
I yield back the balance of my time.
Mr. BYRNE. Mr. Speaker, I yield myself the balance of my time.
I appreciate the remarks of my friend from Florida. This is a tough issue, there is no question about it. There are many of us that don't really understand how we got to this point. I have been trying to do some digging about that.
The truth of the matter is that the people in the Federal Government who were supposed to be looking over this and watching Puerto Rico and making sure that, if things needed to be done, they were done appropriately, under the law, were the President of the United States and the Treasury Department, and they failed.
Now, they failed in watching the situation and raising the alarm for the rest of us. Let's make no mistake about it. The people of Puerto Rico elected governments, and those governments that have home rule authority made decisions that have put this island, as we just heard, on the brink of collapse because they spent money they didn't have, and they racked up debt they can't pay back.
Now, let's just stop and think for a minute. Where are we going in the United States of America? We are spending money we don't have, and we are racking up debt that there may come a day, for our country, as it is for Puerto Rico, that we won't be able to pay back; and then we, as the United States of America, will be on the brink of collapse. So perhaps we should learn a lesson here, that the decisions we make in this House about the future of the United States of America, those decisions could lead to the very same result for our country that we see for Puerto Rico.
My heart goes out to the people of Puerto Rico. They are suffering, and the suffering will get worse if we do not act.
The sponsor of the bill used two phrases with regard to this legislation that really struck me. He said it is ``common sense'' and
``bipartisan.'' Isn't it a good thing that we have commonsense legislation that is bipartisan? Isn't that what the people of the United States of America send us here to do?
Let's come together, as one House, with one voice, help the people of Puerto Rico, and then, together, sit down and learn the lesson of what has happened here so that we don't repeat those mistakes for our country and end up with the United States of America on the brink of collapse.
Ms. JACKSON LEE. Mr. Speaker, I stand before you today to discuss H. Res. 770, the Rule providing for consideration of H.R. 5278--Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA).
Our consideration of PROMESA must be a very thoughtful analysis of an outcome where the people of Puerto Rico will be empowered and be on a path towards progress where working families, their children and pensioners can be on a pathway towards a better future.
PROEMSA is a bipartisan measure and effort to assist the Commonwealth of Puerto Rico in restructuring $70 billion in currently unpayable debt, an amount that exceeds the size of its entire economy.
There are a total of 3.548 million people living on the island of Puerto Rico.
Since 2006, Puerto Rico's economy has shrunk by more than 10 percent and shed more than 250,000 jobs.
More than 45 percent of the Commonwealth's residents live in poverty--the highest poverty rate of any state or territory.
Furthermore, its 11.6 percent unemployment rate is more than twice the national level.
The challenges facing the people of Puerto Rico have ignited the largest wave of outmigration since the 1950's, and the pace continues to accelerate.
More than 300,000 people have left Puerto Rico in the past decade with a record of 84,000 people leaving in 2014.
Puerto Ricans suffer from high rates of forced migration due to the better opportunities offered in the United States compared to in the commonwealth.
The gap between emigrants and immigrants has been continuously widening.
Indeed, this increase in emigrants caused a population decline, the first in its history, and the stateside Puerto Rican population grew quickly.
The median age of male Puerto Ricans is of working age from the ages of 25-49 and similarly for women from the ages of 25-59.
Most of the homes are family-led.
There are about 1,133,600 people in the civilian labor force but only 43 percent of them are employed.
In addition, most of those working work in minimum wage jobs.
Over 27 percent of the people in the Commonwealth are on welfare.
The median income in Puerto Rico is only half that of the poorest U.S. state, Mississippi, but welfare benefits are about the same in Puerto Rico as in Mississippi.
Swift action is needed in order to alleviate the pain and suffering of the people of Puerto Rico.
There is no time to waste.
H.R. 5278 appears to be an emergency default for Puerto Rico, an American territory where 3.5 million American citizens reside and continue to live in fear for their finances, their families and their future.
On July 1, Puerto Rico will face nearly $2 billion worth of bond payments.
Already, businesses have closed, public worker benefits are in jeopardy, hospital care is restricted and basic governmental functions are at risk.
Should the Puerto Rican government default in early July, it faces certain litigation by its creditors, further erosion of its economy, and an inability to provide basic services to its people.
This measure creates a process for the Commonwealth to restructure their bond debts, avoiding a default that could lead to a humanitarian catastrophe and instead allowing Puerto Rico to return to economic growth and fiscal balance.
It would allow for the creation of a seven-member Financial Oversight and Management board which will approve annual budgets and fiscal plans.
This fiscal plan must be designed in a way that provides adequate funding for pension obligations.
Also, I have serious concerns about the minimum wage provision of the measure.
Specifically, regarding minimum wage and overtime, H.R. 5278 would extend the application of the existing federal subminimum wage of $4.25 an hour to those under the age of 25 in Puerto Rico for as long as four years, while all other federal jurisdictions pay the subminimum wage to those under the age of 20 for only up to the first ninety days of employment.
We need to continue to work on ways to improve this measure to ascertain that American citizens in Puerto Rico are not languishing in poverty.
Indeed, the measure contains a provision that provides for a delay on the new Department of Labor overtime pay regulation until a Government Accountability Office (GAO) study is completed and the Department of Labor determines whether the rule could negatively impact the economy of Puerto Rico.
Additionally, the measure would create a ``Revitalization Coordinator'' that works closely with the Oversight Board to determine which energy and other infrastructure projects will be able to bypass local environmental, public health, and consumer protection laws.
Let me underscore again that I have serious concerns about the provisions in this measure, not the least of which is the expansion of the subminimum wage, the exemption from the new overtime Rule, and the exclusion of protections for pension benefits.
I commend my Democratic colleagues in their efforts of protecting the environment and wildlife refuge in the Commonwealth.
I look forward to working with my Democratic colleagues and our Republican colleagues across the aisle in continuing to improve the provisions of the measure for the betterment of fellow American citizens in Puerto Rico.
Let me conclude by highlighting that H.R. 5278 is not perfect but so long as we continue to work on a bipartisan basis in good faith, we can work towards our efforts of ensuring that Puerto Rico does not become a humanitarian crisis.
We must continue to work together to be our brother's and sister's keepers.
It is essential that we stand with the people of Puerto Rico and take action.
It is essential that we continue to work towards an orderly process that promotes the livelihood of U.S. citizens in Puerto Rico and alleviates the crisis.
Mr. BYRNE. Mr. Speaker, I yield back the balance of my time, and I move the previous question on the resolution.
The previous question was ordered.
The SPEAKER pro tempore. The question is on the resolution.
The question was taken; and the Speaker pro tempore announced that the ayes appeared to have it.
Mr. BYRNE. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further proceedings on this question will be postponed.
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