[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.
____________________