[117th Congress Public Law 82]
[From the U.S. Government Publishing Office]
[[Page 136 STAT. 3]]
Public Law 117-82
117th Congress
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''). <<NOTE: Jan. 20, 2022 - [H.R. 1192]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Puerto Rico
Recovery Accuracy in Disclosures Act of 2021. 48 USC 2101 note.>>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Puerto Rico Recovery Accuracy in
Disclosures Act of 2021'' or ``PRRADA''.
SEC. 2. <<NOTE: 48 USC 2178.>> 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) <<NOTE: Courts.>> 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) <<NOTE: Determination.>> 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.--
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(1) <<NOTE: Deadline.>> 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) <<NOTE: Courts.>> 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) <<NOTE: Courts.>> 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
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(B) represents or holds an adverse interest in
connection with the case.
Approved January 20, 2022.
LEGISLATIVE HISTORY--H.R. 1192:
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SENATE REPORTS: No. 117-48 (Comm. on Energy and Natural Resources).
CONGRESSIONAL RECORD:
Vol. 167 (2021):
Feb. 23, 24, considered and passed
House.
Dec. 17, considered and passed
Senate, amended.
Vol. 168 (2022):
Jan. 19, House concurred in Senate
amendment.
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