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”.
Territorial Relief Under Sustainable Transitions for Puerto Rico Act of 2022
A BILL
To modify the conditions for the termination of an oversight board, and for other purposes.
Sec. 2 Modification to conditions for termination
In general— Section 209 of the Puerto Rico Oversight, Management, and Economic Stability Act (48 U.S.C. 2149) is amended—
in the matter preceding paragraph (1), by striking “upon” and inserting “not later than 90 days after”;
by striking paragraph (1); and
in paragraph (2)—
in the matter preceding subparagraph (A), by striking “at least 4” and inserting “at least 2”; and
in subparagraph (B), by inserting “and without regard to whether the applicable Budget provides for the payment of debt service” after “standards”.
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.
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—
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;
a copy of all such records of the Oversight Board shall be transmitted to Congress;
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;
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;
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:
“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.”
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
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.