[Congressional Record Volume 167, Number 218 (Friday, December 17, 2021)]
[Senate]
[Pages S9307-S9308]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        PUERTO RICO RECOVERY ACCURACY IN DISCLOSURES ACT OF 2021

  Mr. SCHATZ. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 182, H.R. 1192.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The bill clerk read as follows:

       A bill (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'').

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Energy and Natural 
Resources, with an amendment to strike all after the enacting clause 
and insert in lieu thereof the following:

     SECTION 1. SHORT TITLE.



 =========================== NOTE =========================== 

  
  On page S9307, December 17, 2021, at the bottom of the second 
column and the top of the third column, the following appears: an 
amendment to strike all after the enacting clause and insert in 
lieu thereof the following: [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.] SECTION 1. SHORT TITLE.
  
  The online Record has been corrected to read: an amendment to 
strike all after the enacting clause and insert in lieu thereof 
the following: SECTION 1. SHORT TITLE.


 ========================= END NOTE ========================= 


       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.

[[Page S9308]]

       (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.
  Mr. SCHATZ. I ask unanimous consent that the committee-reported 
amendment be agreed to; that the bill, as amended, be considered read a 
third time and passed; and that the motion to reconsider be considered 
made and laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee-reported amendment in the nature of a substitute was 
agreed to.
  The amendment was ordered to be engrossed and the bill to be read a 
third time.
  The bill was read the third time.
  The bill (H.R. 1192), as amended, was passed.

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