Pierluisi said the hearing would provide the opportunity for Gov. Alejandro García Padilla administration officials and others to express their support for the measure, while bankruptcy and financial industry experts are also expected to testify on behalf of the bill.

Pierluisi re-introduced the legislation earlier this month that would empower the government of the U.S. territory of Puerto Rico to authorize one or more of its government-owned corporations, if they were to become insolvent, to restructure their debts under Chapter 9 of the U.S. Bankruptcy Code, as all state governments are already empowered to do under current law.

The hearing will be held by the Judiciary Committee’s Subcommittee on Regulatory Reform, Commercial and Antitrust Law, which has jurisdiction over bankruptcy law. The chairman of the full Judiciary Committee is Congressman Bob Goodlatte (R-VA) and the ranking member is Congressman John Conyers Jr. (D-MI). The chairman of the subcommittee is Congressman Tom Marino (R-PA) and the ranking member is Congressman Hank Johnson (D-GA). The subcommittee consists of eight Republicans and five Democrats.

The subcommittee is expected to invite four witnesses to testify in person about the bill, and to answer any questions posed by members of the subcommittee. The witness list will be announced by the subcommittee in advance of the hearing. In addition, individuals and organizations will be able to submit statements, in letter form, that could potentially be made part of the official hearing record.

“I want to thank Chairman Goodlatte, Ranking Member Conyers, Chairman Marino and Ranking Member Johnson for scheduling a hearing on this critically important and time-sensitive bill. It is my hope and expectation that the hearing next Thursday will be productive. Many stakeholders support this bill, and this hearing will provide them with the opportunity to memorialize and explain their support. Although no objections to the bill have been registered with me up until now, if there are any concerns about the legislation, those concerns can be raised and addressed at the hearing. The point of the hearing is to create a comprehensive record that will help the Committee’s leadership determine whether to take the next step in the legislative process, which would be to hold a vote on the bill,” said Pierluisi.

“My legislation is straightforward. If enacted, it would simply enable the Puerto Rico government to authorize its public corporations to seek relief under Chapter 9 as a last resort in the event of insolvency, under the supervision of an impartial federal bankruptcy judge, based on substantive and procedural legal precedent established in Chapter 9 proceedings that have taken place throughout the United States. My bill does not entail a transfer of any funds from the U.S. government to the government of Puerto Rico; it merely empowers the Puerto Rico government to authorize its insolvent public corporations to utilize a tried-and-true legal procedure. I believe this is in the best interests of all stakeholders, including creditors, who are craving stability in a time of deep uncertainty. It is also in the clear interest of my constituents, who need a government that is on sound financial footing and that can provide essential services,” the resident commissioner added.

Individuals or organizations wishing to submit a letter that Pierluisi can seek to be made part of the hearing record should send an email to HR870hearing@mail.house.gov, attaching the letter. The letter should be sent prior to the Feb. 26 hearing and should be addressed as follows:

The Honorable Bob Goodlatte

Chairman

House Committee on the Judiciary

2138 Rayburn House Office Building

Washington, DC 20515

The Honorable John Conyers, Jr.

Ranking Member

House Committee on the Judiciary

B-351 Rayburn House Office Building

Washington, DC 20515

The Honorable Tom Marino

Chairman

Subcommittee on Regulatory Reform, Commercial and Antitrust Law

House Committee on the Judiciary

2138 Rayburn House Office Building

Washington, DC 20515

The Honorable Henry C. “Hank” Johnson

Ranking Member

Subcommittee on Regulatory Reform, Commercial and Antitrust Law

House Committee on the Judiciary

B-351 Rayburn House Office Building

Washington, DC 20515