FINANCIAL OVERSIGHT AND MANAGEMENT BOARD

FOR PUERTO RICO

Members
Andrew G. Biggs
Carlos M. García
Arthur J. González
José R. González
Ana J. Matosantos
David A. Skeel, Jr.
José B. Carrión III
Chair Natalie A. Jaresko
Executive Director

BY ELECTRONIC MAIL

April 22, 2020

The Honorable Wanda Vázquez Garced

Governor of Puerto Rico

The Honorable Thomas Rivera Schatz

President of the Senate of Puerto Rico

The Honorable Carlos J. Méndez Núñez

Speaker of the House of Representatives of Puerto Rico

Dear Governor Vázquez Garced, President Rivera Schatz, and Speaker Méndez Núñez:

As you likely know, Judge Swain issued an opinion last week declaring that Law 29-2019, which
eliminates the obligation of municipalities to contribute to the Commonwealth health plan and
Pay-Go system, is “unenforceable and of no effect” and ruled that the defendants are “permanently
enjoined” from implementing and enforcing it. Judge Swain also delayed the effective date of the
opinion and order for three weeks through May 6, 2020, given “the additional challenges facing
the parties during the COVID-19 public health crisis,” so that the Government of Puerto Rico and
the Oversight Board can “work together to try to come up with another solution to the problem.”

In light of Judge Swain’s decision, the Oversight Board met with CRIM and representatives of
both mayors’ association. We have devoted substantial time and effort to developing appropriate
acceptable solutions to the Law 29-2019 issue. Accordingly, we will be providing our view of
next steps in writing by next Tuesday, when we will also be prepared to meet and discuss them
with you.

Sincerely,

Natalie A. Jaresko

CC: Mr. Omar Marrero Díaz

Hon. Javier Carrasquillo
CRIM Governing Board

PO Box 192018 San Juan, PR 00919-2018; www.oversightboard.pr.gov; comments@promesa.gov