[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1192 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 1192
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'').
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 22, 2021
Ms. Velazquez (for herself, Mr. Biggs, Mr. Raskin, Mr. Grijalva, Mr.
Cicilline, Ms. Jayapal, and Miss Gonzalez-Colon) introduced the
following bill; which was referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
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) Required Disclosure.--
(1) In general.--In a voluntary case commenced under
section 304 of PROMESA (48 U.S.C. 2164), no attorney,
accountant, appraiser, auctioneer, agent, consultant, 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 submitted
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--
(A) the debtor;
(B) any creditor;
(C) any other party in interest, including any
attorney or accountant;
(D) the Financial Oversight and Management Board
established in accordance with section 101 of PROMESA
(48 U.S.C. 2121); and
(E) any person employed by the Oversight Board
described in subparagraph (D).
(2) Other requirements.--A professional person that submits
a statement under paragraph (1) shall--
(A) supplement the statement with any additional
relevant information that becomes known to the person;
and
(B) file annually a notice confirming the accuracy
of the statement.
(b) Review.--
(1) In general.--The United States Trustee shall review
each verified statement submitted pursuant to subsection (a)
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
compensation applications filed under section 316 or 317 of
PROMESA (48 U.S.C. 2176, 2177) that fail to satisfy the
requirements of subsection (e).
(3) Right to be heard.--Each person described in section
1109 of title 11, United States Code, may appear and be heard
on any issue in a case under this section.
(c) Jurisdiction.--The district courts of the United States shall
have jurisdiction of all cases under this section.
(d) Retroactivity.--
(1) In general.--If a court has entered an order approving
compensation under a case commenced under section 304 of
PROMESA (48 U.S.C. 2164), each professional person subject to
the order shall file a verified statement in accordance with
subsection (a) not later than 60 days after the date of
enactment of this Act.
(2) No delay.--A court may not delay any proceeding in
connection with a case commenced under section 304 of PROMESA
(48 U.S.C. 2164) pending the filing of a verified statement
under paragraph (1).
(e) Limitation on Compensation.--
(1) In general.--In a voluntary 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), the court may
deny allowance of compensation for services and reimbursement
of expenses, accruing after the date of the enactment of this
Act of a professional person if the professional person--
(A) has failed to file statements of connections
required by subsection (a) or has filed inadequate
statements of connections;
(B) except as provided in paragraph (3), is on or
after the date of enactment of this Act not a
disinterested person, as defined in section 101 of
title 11, United States Code; or
(C) except as provided in paragraph (3),
represents, or holds an interest adverse to, the
interest of the estate with respect to the matter on
which such professional person is employed.
(2) Considerations.--In making a determination under
paragraph (1), the court may take into consideration whether
the services and expenses are in the best interests of
creditors and the estate.
(3) Committee professional standards.--An attorney or
accountant described in section 1103(b) of title 11, United
States Code, shall be deemed to have violated paragraph (1) if
the attorney or accountant violates section 1103(b) of title
11, United States Code.
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