[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1192 Enrolled Bill (ENR)]
H.R.1192
One Hundred Seventeenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday,
the third day of January, two thousand and twenty-two
An Act
To impose requirements on the payment of compensation to professional
persons employed in voluntary cases commenced under title III of the
Puerto Rico Oversight Management and Economic Stability Act (commonly
known as ``PROMESA'').
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 ``Puerto Rico Recovery Accuracy in
Disclosures Act of 2021'' or ``PRRADA''.
SEC. 2. DISCLOSURE BY PROFESSIONAL PERSONS SEEKING APPROVAL OF
COMPENSATION UNDER SECTION 316 OR 317 OF PROMESA.
(a) Definitions.--In this section:
(1) List of material interested parties.--The term ``List of
Material Interested Parties'' means the List of Material Interested
Parties established under subsection (c)(1).
(2) Oversight board.--The term ``Oversight Board'' has the
meaning given the term in section 5 of PROMESA (48 U.S.C. 2104).
(b) Required Disclosure.--
(1) In general.--In a case commenced under section 304 of
PROMESA (48 U.S.C. 2164), no attorney, accountant, appraiser,
auctioneer, agent, or other professional person may be compensated
under section 316 or 317 of that Act (48 U.S.C. 2176, 2177) unless
prior to making a request for compensation, the professional person
has filed with the court a verified statement conforming to the
disclosure requirements of rule 2014(a) of the Federal Rules of
Bankruptcy Procedure setting forth the connection of the
professional person with any entity or person on the List of
Material Interested Parties.
(2) Supplement.--A professional person that submits a statement
under paragraph (1) shall promptly supplement the statement with
any additional relevant information that becomes known to the
person.
(3) Disclosure.--Subject to any other applicable law, rule, or
regulation, a professional person that fails to file or update a
statement required under paragraph (1) or files a statement that
the court determines does not represent a good faith effort to
comply with this section shall disclose such failure in any filing
required to conform to the disclosure requirements under rule
2014(a) of the Federal Rules of Bankruptcy Procedure.
(c) List of Material Interested Parties.--
(1) Preparation.--Not later than 30 days after the date of
enactment of this Act, the Oversight Board shall establish a List
of Material Interested Parties subject to--
(A) the approval of the court; and
(B) the right of the United States trustee or any party in
interest to be heard on the approval.
(2) Inclusions.--Except as provided in paragraph (3), the List
of Material Interested Parties shall include--
(A) the debtor;
(B) any creditor;
(C) any other party in interest;
(D) any attorney or accountant of--
(i) the debtor;
(ii) any creditor; or
(iii) any other party in interest;
(E) the United States trustee and any person employed in
the office of the United States trustee; and
(F) the Oversight Board, including the members, the
Executive Director, and the employees of the Oversight Board.
(3) Exclusions.--The List of Material Interested Parties may
not include any person with a claim, the amount of which is below a
threshold dollar amount established by the court that is consistent
with the purpose of this Act.
(d) Review.--
(1) In general.--The United States trustee shall review each
verified statement submitted pursuant to subsection (b) and may
file with the court comments on such verified statements before the
professionals filing such statements seek compensation under
section 316 or 317 of PROMESA (48 U.S.C. 2176, 2177).
(2) Objection.--The United States trustee may object to
applications filed under section 316 or 317 of PROMESA (48 U.S.C.
2176, 2177) that fail to satisfy the requirements of subsection
(b).
(e) Limitation on Compensation.--In a case commenced under section
304 of PROMESA (48 U.S.C. 2164), in connection with the review and
approval of professional compensation under section 316 or 317 of
PROMESA (48 U.S.C. 2176, 2177) filed after the date of enactment of
this Act, the court may deny allowance of compensation or reimbursement
of expenses if--
(1) the professional person has failed to file the verified
disclosure statements required under subsection (b)(1) or has filed
inadequate disclosure statements under that subsection; or
(2) during the professional person's employment in connection
with the case, the professional person--
(A) is not a disinterested person (as defined in section
101 of title 11, United States Code) relative to any entity or
person on the List of Material Interested Parties; or
(B) represents or holds an adverse interest in connection
with the case.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.