TRUST for Puerto Rico Act of 2022

To modify the conditions for the termination of an oversight board, and for other purposes. 1. Short title This Act may be cited as the Territorial Relief Under Sustainable Transitions for Puerto Rico Act of 2022 TRUST for Puerto Rico Act of 2022 2. Modification to conditions for termination (a) In general Section 209 of the Puerto Rico Oversight, Management, and Economic Stability Act ( 48 U.S.C. 2149 (1) in the matter preceding paragraph (1), by striking upon not later than 90 days after (2) by striking paragraph (1); and (3) in paragraph (2)— (A) in the matter preceding subparagraph (A), by striking at least 4 at least 2 (B) in subparagraph (B), by inserting and without regard to whether the applicable Budget provides for the payment of debt service standards (b) Effective date Each amendment made by subsection (a) shall take effect and apply as if enacted as part of the Puerto Rico Oversight, Management, and Economic Stability Act. (c) Transfer of functions Upon certification of an Oversight Board under section 209 of the Puerto Rico Oversight, Management, and Economic Stability Act ( 48 U.S.C. 2149 (1) all property, funds, assets, and records of the Oversight Board shall be transferred to the territorial government in accordance with the transition provisions established by such adopted resolution; (2) a copy of all such records of the Oversight Board shall be transmitted to Congress; (3) with respect to any pending action under title III of the Puerto Rico Oversight, Management, and Economic Stability Act ( 48 U.S.C. 2161 et seq. (4) with respect to any action taken pursuant to the authorities under title VI of the Puerto Rico Oversight, Management, and Economic Stability Act ( 48 U.S.C. 2191 et seq. (5) section 302 of the Puerto Rico Oversight, Management, and Economic Stability Act ( 48 U.S.C. 2162 302. Who may be a debtor An entity may be a debtor under this title if— (1) the entity is— (A) a territory that has requested the establishment of an Oversight Board or has had an Oversight Board established for it by the United States Congress in accordance with section 101 of this Act; or (B) a covered territorial instrumentality of a territory described in paragraph (1)(A); (2) the Oversight Board— (A) has issued a certification under section 206(b) of this Act for such entity; or (B) has terminated pursuant to section 209 and the territorial government has undertaken all duties and responsibilities under this title that were formerly assigned to the Oversight Board; and (3) the entity desires to effect a plan to adjust its debts. ; (6) the definition of covered territorial instrumentality 48 U.S.C. 2104(7) or, upon termination of the Oversight Board pursuant to section 209, designated by the covered territory to be subject to such requirements (7) the definition of administrative supervisor 48 U.S.C. 2231(a)(1) or, upon termination of the Oversight Board pursuant to section 209, the Territory Government Issuer

Summary: Territorial Relief Under Sustainable Transitions for Puerto Rico Act of 2022 or the TRUST for Puerto Rico Act of 2022 This bill modifies the conditions for the termination of the oversight board for Puerto Rico. Specifically, the oversight board must terminate not later than 90 days after certification by the board for at least two consecutive fiscal years that (1) the territorial government has developed its budgets in accordance with modified accrual accounting standards; and (2) the expenditures made by the territorial government during each fiscal year did not exceed its revenues, as determined in accordance with such standards and without regard to whether the applicable budget provides for the payment of debt service. The bill also sets forth provisions regarding the transition of oversight from an oversight board to a territorial government.