Sección 9. Esta Resolución Conjunta entrará en vigor inmediatamente luego de su aprobación

Resolución Conjunta del Fondo Rotatorio para Adelantos de Recuperación y Gastos Administrativos Elegibles para Reembolso Federal bajo Programas de FEMA [RC 85-2020] Part II – English version of the Joint Resolution. BE IT RESOLVED BY THE LEGISLATIVE ASSEMBLY OF PUERTO RICO: Section 1. — To authorize the Secretary of the Treasury of Puerto Rico (hereinafter, the Secretary), on behalf of the Government of Puerto Rico (Government), to establish a segregated revolving fund (the Revolving Fund) to provide or extend loans, credit facilities, or advances (hereinafter, Recovery Advances) to central government agencies, public corporations, instrumentalities, and municipalities of the Commonwealth of Puerto Rico (each, a Borrower), pursuant to such terms, conditions and requirements as may be established in the guidelines or regulations issued by the Secretary and/or the Puerto Rico Fiscal Agency and Financial Advisory Authority (AAFAF), in coordination with the Central Office for Recovery, Reconstruction and Resilience (COR3) and approved by the Financial Oversight and Management Board of Puerto Rico (Oversight Board) for the implementation of the program authorized herein (the Program Guidelines). The Revolving Fund and the authorization to make Recovery Advances shall expire on June 30, 2025. The Revolving Fund will be funded with seven hundred and fifty million dollars ($750,000,000.00), which will come from non-obligated funds of the Government in the Treasury Single Account, prior years surpluses, and/or unused balances. To maintain transparency, upon enactment of this Joint Resolution, such funds shall be deposited in a segregated bank account. Access to draws on the funds in the Revolving Fund will be limited to Recovery Advances and administrative expenses eligible for federal reimbursement, pursuant to the terms and conditions of this Joint Resolution. Such funds will also be considered a budget appropriation for the purposes and limitations established in this Joint Resolution. Upon expiration of the Revolving Fund, all funds remaining therein and any repayments subsequently received by the Secretary on account Recovery Advances shall be deposited in the Treasury Single Account. The terms and conditions of the Recovery Advances and any amendments thereof must be approved by AAFAF and by the Oversight Board pursuant to applicable laws and policies. Section 2. — To authorize Borrowers to receive Recovery Advances and to enter into any credit agreement or any other loan document in respect of such Recovery Advances (the “Recovery Advance Documents”) pursuant to such terms agreed to by the Borrower and the Secretary, and subject to such approvals as may be required under applicable law. The Recovery Advances shall be repaid to the Government and deposited into the Revolving Fund immediately upon receipt of the corresponding funds from FEMA disbursements for the associated permanent work project (either from funds received by Borrowers from FEMA, or funds that the Commonwealth receives from FEMA on behalf of the Borrowers), applicable to the project financed with the corresponding Recovery Advance, pursuant to the terms of the Recovery Advance Documents. AAFAF will be responsible for administering the Recovery Advances on behalf of Treasury pursuant to the Program Guidelines. Resolución Conjunta del Fondo Rotatorio para Adelantos de Recuperación y Gastos Administrativos Elegibles para Reembolso Federal bajo Programas de FEMA [RC 85-2020] Section 3. — The Recovery Advances will only be disbursed once there is a fully obligated project by FEMA. Other restrictions on the use and disbursement of funds shall include, but not be limited to: (a) Recovery Advances will only be available to be used to advance funds for Permanent Work (Categories C through G) projects under FEMA’s Public Assistance and Hazard Mitigation Grant programs, up to the approved amount, including the federal and local cost share. As for the local portion of the funds, it will be subject to the Program Guidelines in accordance with the requirements of the Community Development Block Grant Disaster Recovery Program (CDBG-DR) or another applicable program. (b) No funds under a Recovery Advance will be used for Category A (debris removal) or Category B (emergency protective measures) work, CDBG-DR related recovery projects, cost overruns, or any other uses not authorized in the Program Guidelines. (c) Such other restrictions and requirements established in the Program Guidelines. AAFAF and Treasury shall provide monthly reports to the Oversight Board regarding (i) the operation of the program, (ii) the status of the projects financed with Recovery Advances, (iii) the outstanding balances of the Recovery Advances and (iv) the status of FEMA reimbursements in connection with the project. Section 4. — Notwithstanding any applicable Puerto Rico law, no creditor of the Government or its public corporations shall obtain or hold a security interest, lien, encumbrance, other interest in, or right to foreclose upon, or have the right to seek any remedies against (a) the Recovery Advances, (b) any right to receive Recovery Advances, (c) any account into which Recovery Advances are deposited, (d) the funds received from FEMA or any right to receive such funds, (e) the Commonwealth’s right to repayment of Recovery Advances, or (f) the Revolving Fund. No creditor of the Government of Puerto Rico or its public corporations shall have any right in any way to interfere with the Revolving Fund, the use of Recovery Advances or the repayment of such funds to the Commonwealth. Section 5. — Governance and controls. In addition to the requirement for a fully obligated FEMA project to the satisfaction of Treasury, AAFAF, and the Oversight Board, unless otherwise provided in the Program Guidelines, the following information must be submitted by the Borrower, reviewed, and approved to the satisfaction of Treasury, AAFAF, and the Oversight Board prior to funds being advanced: (a) A Recovery Advance application package including the project description, detailed project budget along with spending timeline. The package must clearly outline the need for advance funding. The application must also clearly indicate any other advance funding which the Borrower has received in connection with the project. Resolución Conjunta del Fondo Rotatorio para Adelantos de Recuperación y Gastos Administrativos Elegibles para Reembolso Federal bajo Programas de FEMA [RC 85-2020] (b) A program agreement that includes provisions for Borrower monitoring and repayment of any Recovery Advances for expenses that are ineligible for FEMA reimbursement, as well as the ability of the Treasury to cancel the advance and specific remedies for the repayment for non-performance of advance conditions. (c) The specific point of contact of the Borrower who will manage and report against the funding agreement. (d) Should any scope of the project change, the Borrower must notify the Government and also begin the process of obtaining any required approvals. The Borrower must then immediately notify the Government any such approval or rejection. (e) In connection with each application, AAFAF may perform and submit: (1) A risk assessment of the Borrower including the most recent audited financial statements and most recent unaudited financial statements, record of prior grant experience/performance and, where applicable, a review of single audits; (2) A plan for Borrower monitoring throughout Recovery Advance period by the Oversight Board and COR3. This monitoring must consider the review of procurement conducted by the Applicant along with documentation supporting costs incurred to mitigate the risk of ineligible costs. (f) Ongoing Reporting – Unless otherwise provided in the Program Guidelines, once an application has been approved, each Borrower must submit a monthly progress report to AAFAF and the Oversight Board with the following information: (1) An overall project status update (work completed versus still pending), estimated cost required to complete the project, cash flow reporting and updated timelines. The same level of detail must be provided in the monthly progress reports as provided in the original application; (2) With each monthly progress report, the Borrower must certify that the Recovery Advance funding was used for the purposes outlined in the original application and also confirm that no additional funds have been borrowed in connection with the project. (3) A list of the request for reimbursement (RFR) submitted and the status of each request. Resolución Conjunta del Fondo Rotatorio para Adelantos de Recuperación y Gastos Administrativos Elegibles para Reembolso Federal bajo Programas de FEMA [RC 85-2020] Section 6. — Failure to Repay. Should the Borrower fail to comply with the provisions herein or in the Recovery Advance Documents, Treasury shall restrict further advancement of Recovery Advance funds to the Borrower. Should FEMA deny or otherwise fail to make a payment on an approved project which would then be used to reimburse a Recovery Advance, the Borrower shall repay the advance within 30 days of such denial or failure to pay, unless otherwise extended by the Secretary with the approval of the Oversight Board and AAFAF. The Program Guidelines should establish a process to request an extension and the parameters of its approval. Should the Borrower fail to repay, the following corrective measures may be taken: (a) If a central government agency is the Borrower, the Office of Management and Budget, in coordination with Treasury, must withhold from any of the appropriations to such agency the necessary amounts to repay any outstanding Recovery Advances, when AAFAF determines that this withholding is necessary to ensure compliance with this obligation by the concerned entities. (b) If a municipality is the Borrower, the Municipal Revenue Collection Center (CRIM, in Spanish) must remit to Treasury, within the seven (7) days following the written request from AAFAF, any Recovery Advances owed by the municipality, from the unencumbered balance of the property taxes, undisbursed portions of any Commonwealth transfers due to the municipality, and remaining (unencumbered) revenues that the municipalities have the right to receive pursuant to Act 107-2020, as amended, known as the “Puerto Rico Municipal Code.” Upon the effectiveness of this Law, a lien over said unencumbered balance shall automatically and permanently be created in favor of the Treasury for the collection of Recovery Advances owed, without the need for any other act, possession or control thereof, subject to the lien established pursuant to Act 106-2017, as amended, over such funds. No excess from funds in the Municipal Public Debt Redemption Fund will be distributed to a municipality until any amounts due and payable by the municipality under any Revolving Advances have been repaid. (c) If a public corporation or instrumentality is the Borrower, the Office of Management and Budget, in coordination with Treasury, shall withhold from any appropriations to such entity, and/or the Secretary shall retain from any amounts owed by the Commonwealth to such entity, the necessary amounts to repay any outstanding Recovery Advances, when AAFAF determines that this withholding is necessary to ensure compliance with this obligation by the concerned entities. Section 7. — The issuance and approval of the Program Guidelines shall be subject to the requirements established herein and, therefore, shall not be subject to Act 38-2017, as amended, known as the “Government of Puerto Rico Uniform Administrative Procedure Act”. Resolución Conjunta del Fondo Rotatorio para Adelantos de Recuperación y Gastos Administrativos Elegibles para Reembolso Federal bajo Programas de FEMA [RC 85-2020] Section 8. — This Joint Resolution shall be adopted in the two official languages of Puerto Rico, in Spanish and English. If when interpreting or applying this Joint Resolution a conflict between the text in English and the text in Spanish shall occur, the text in English shall prevail. Section 9. — This Joint Resolution shall take effect immediately upon enactment. Note. This compilation was prepared by the Puerto Rico Office of Management and Budget staff who have striven to ensure it is complete and accurate. However, this is not an official compilation and may not be completely free of error. It contains all amendments incorporated for reading purposes only. For accuracy and exactitude please refer to the act original text and the collection of Laws of Puerto Rico Annotated LPRA. The state links acts are property of Legislative Services Office of Puerto Rico. The federal links acts are property of US Government Publishing Office GPO. Compiled by the Office of Management and Budget Library.