[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1192 Reported in Senate (RS)]
<DOC>
Calendar No. 182
117th CONGRESS
1st Session
H. R. 1192
[Report No. 117-48]
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 25, 2021
Received; read twice and referred to the Committee on Energy and
Natural Resources
December 13, 2021
Reported by Mr. Manchin, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
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,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Puerto Rico Recovery
Accuracy in Disclosures Act of 2021'' or ``PRRADA''.</DELETED>
<DELETED>SEC. 2. DISCLOSURE BY PROFESSIONAL PERSONS SEEKING APPROVAL OF
COMPENSATION UNDER SECTION 316 OR 317 OF
PROMESA.</DELETED>
<DELETED> (a) Required Disclosure.--</DELETED>
<DELETED> (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--
</DELETED>
<DELETED> (A) the debtor;</DELETED>
<DELETED> (B) any creditor;</DELETED>
<DELETED> (C) any other party in interest, including
any attorney or accountant;</DELETED>
<DELETED> (D) the Financial Oversight and Management
Board established in accordance with section 101 of
PROMESA (48 U.S.C. 2121); and</DELETED>
<DELETED> (E) any person employed by the Oversight
Board described in subparagraph (D).</DELETED>
<DELETED> (2) Other requirements.--A professional person
that submits a statement under paragraph (1) shall--</DELETED>
<DELETED> (A) supplement the statement with any
additional relevant information that becomes known to
the person; and</DELETED>
<DELETED> (B) file annually a notice confirming the
accuracy of the statement.</DELETED>
<DELETED> (b) Review.--</DELETED>
<DELETED> (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).</DELETED>
<DELETED> (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).</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (c) Jurisdiction.--The district courts of the United
States shall have jurisdiction of all cases under this
section.</DELETED>
<DELETED> (d) Retroactivity.--</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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).</DELETED>
<DELETED> (e) Limitation on Compensation.--</DELETED>
<DELETED> (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--</DELETED>
<DELETED> (A) has failed to file statements of
connections required by subsection (a) or has filed
inadequate statements of connections;</DELETED>
<DELETED> (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</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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.</DELETED>
<DELETED> (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.</DELETED>
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.
Calendar No. 182
117th CONGRESS
1st Session
H. R. 1192
[Report No. 117-48]
_______________________________________________________________________
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'').
_______________________________________________________________________
December 13, 2021
Reported with an amendment