Goodlatte and Marino Statement on Recent Developments Regarding Puerto Rico

Washington, D.C.— House Judiciary Committee Chairman Bob Goodlatte (R-Va.) and Subcommittee on Regulatory Reform, Commercial and Antitrust Law Chairman Tom Marino (R-Pa.) issued the following statement on the evolving economic situation in Puerto Rico:

“Today, we met with our Republican colleagues on the Judiciary Committee to discuss the issues facing Puerto Rico.  While no consensus was reached, a general concern was expressed that to provide Puerto Rico’s municipalities access to chapter 9 of the Bankruptcy Code would not, by itself, solve Puerto Rico’s difficulties, which are associated with underlying, structural economic problems.  These problems need to be addressed and we continue to monitor the developments in Puerto Rico and are actively assessing the merits of any potential congressional response.”

Background: In 1984, Congress passed the Bankruptcy Amendments and Federal Judgeship Act that, among other things, defined the term “State.”  This definition resulted in Puerto Rico being among other territory governments that cannot allow their municipalities to use chapter 9 of the Bankruptcy Code. 

The House Judiciary Committee held a hearing on Fedruary 26, 2015 to revisit the 1984 definition and reevaluate the merits of providing Puerto Rico’s municipalities access to chapter 9 of the Bankruptcy Code under H.R. 870, the Puerto Rico Chapter 9 Uniformity Act of 2015.