TRUST for Puerto Rico Act of 2022
Bill: H.R.7409 | Sponsor: Rep. Torres, Ritchie (D-NY)
Policy area: Government Operations and Politics

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.

To modify the conditions for the termination of an oversight board, and 
                          for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Territorial Relief Under Sustainable 
Transitions for Puerto Rico Act of 2022'' or the ``TRUST for Puerto 
Rico Act of 2022''.

SEC. 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) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``upon'' and inserting ``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'' and inserting ``at least 2''; 
                and
                    (B) in subparagraph (B), by inserting ``and without 
                regard to whether the applicable Budget provides for 
                the payment of debt service'' after ``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), as amended by subsection (a), 
and upon the adoption of a resolution by the legislature of a territory 
and signed by that territory's governor setting forth the manner in 
which such termination shall be implemented--
            (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.) as of the date of the adoption of 
        such resolution, the duties and responsibilities of the 
        Oversight Board (including the role and capacity set forth 
        under section 315 of such title) with respect to such action, 
        as of the day before such date of adoption, shall be 
        transferred to the territorial government in accordance with 
        the provisions of such adopted resolution;
            (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.) 
        on or after the date of the adoption of such resolution, the 
        duties, responsibilities, and all applicable powers and roles 
        of the Oversight Board, including under any other provision of 
        such Act relating to such action, shall become the duties, 
        responsibilities, powers, and roles, respectively, of the 
        territorial government in accordance with the provisions of 
        such adopted resolution;
            (5) section 302 of the Puerto Rico Oversight, Management, 
        and Economic Stability Act (48 U.S.C. 2162) shall be applied 
        with respect to such territorial government as if it read as 
        follows:

``SEC. 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'' in section 5(7) of the Puerto Rico Oversight, 
        Management, and Economic Stability Act (48 U.S.C. 2104(7)) 
        shall be applied as if ``or, upon termination of the Oversight 
        Board pursuant to section 209, designated by the covered 
        territory to be subject to such requirements'' were inserted 
        before the period at the end; and
            (7) the definition of ``administrative supervisor'' in 
        section 601(a)(1) of the Puerto Rico Oversight, Management, and 
        Economic Stability Act (48 U.S.C. 2231(a)(1)) shall be applied 
        as if ``or, upon termination of the Oversight Board pursuant to 
        section 209, the Territory Government Issuer'' were inserted 
        before the period at the end.
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