PROMESA takes effect: Public Law 114-187 creates the Board and Title III

On June 30, 2016, Public Law 114-187 — the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA), S. 2328 — was enacted. The govinfo PDF is the official statute (130 STAT. 549), not a local press note or lobby summary.

Title I creates the Financial Oversight and Management Board for Puerto Rico (the Board) as an entity within the covered territorial government, with powers to designate instrumentalities, require budgets and reports, and operate with its own budget autonomy. Title II assigns the Board approval of fiscal plans and budgets, compliance review, restructuring duties, and authority over debt issuance.

Title III establishes the federal debt-adjustment procedure (petition and plan of adjustment before the district court), with the Board as the debtor’s representative. Title VI covers creditor collective action. Section 405 imposes an automatic stay upon enactment. Titles I–II and III are declared non-severable from each other in the effectiveness text.

The short title and table of contents also organize Board ethics, required reports, Oversight Board termination, pension analysis, and intervention in litigation — the full institutional scaffolding that later underpinned fiscal plans and Title III cases in federal court.

The law defines covered territory and covered territorial instrumentality and empowers the Board to bring entities under supervision. The initial stay and the Title III and Title VI mechanisms are legal restructuring tools, distinct from FEMA or HUD allocations and from reconstruction disbursements.

PROMESA is not, by itself, a reconstruction disbursement or a “theft” of funds: it is the legal framework for oversight and restructuring. This note sticks to the published govinfo statute PDF; it does not mix in political signing narratives or island-press storylines here. Primary: govinfo PLAW-114publ187. Cousin: none.