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[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
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