IIB 

117TH CONGRESS 

1ST SESSION H. R. 1192 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 25, 2021 

Received; read twice and referred to the Committee on Energy and Natural 

Resources 

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’’). 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Puerto Rico Recovery 

3 Accuracy in Disclosures Act of 2021’’ or ‘‘PRRADA’’. 

4 SEC. 2. DISCLOSURE BY PROFESSIONAL PERSONS SEEKING 

5 APPROVAL OF COMPENSATION UNDER SEC6 TION 316 OR 317 OF PROMESA. 

7 (a) REQUIRED DISCLOSURE.— 

8 (1) IN GENERAL.—In a voluntary case com9 menced under section 304 of PROMESA (48 U.S.C. 

10 2164), no attorney, accountant, appraiser, auc11 tioneer, agent, consultant, or other professional per12 son may be compensated under section 316 or 317 

13 of that Act (48 U.S.C. 2176, 2177) unless prior to 

14 making a request for compensation, the professional 

15 person has submitted a verified statement con16 forming to the disclosure requirements of rule 

17 2014(a) of the Federal Rules of Bankruptcy Proce18 dure setting forth the connection of the professional 

19 person with— 

20 (A) the debtor; 

21 (B) any creditor; 

22 (C) any other party in interest, including 

23 any attorney or accountant; 

24 (D) the Financial Oversight and Manage25 ment Board established in accordance with sec26 tion 101 of PROMESA (48 U.S.C. 2121); and 


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1 (E) any person employed by the Oversight 

2 Board described in subparagraph (D). 

3 (2) OTHER REQUIREMENTS.—A professional 

4 person that submits a statement under paragraph 

5 (1) shall— 

6 (A) supplement the statement with any ad7 ditional relevant information that becomes 

8 known to the person; and 

9 (B) file annually a notice confirming the 

10 accuracy of the statement. 

11 (b) REVIEW.— 

12 (1) IN GENERAL.—The United States Trustee 

13 shall review each verified statement submitted pur14 suant to subsection (a) and may file with the court 

15 comments on such verified statements before the 

16 professionals filing such statements seek compensa17 tion under section 316 or 317 of PROMESA (48 

18 U.S.C. 2176, 2177). 

19 (2) OBJECTION.—The United States Trustee 

20 may object to compensation applications filed under 

21 section 316 or 317 of PROMESA (48 U.S.C. 2176, 

22 2177) that fail to satisfy the requirements of sub23 section (e). 

24 (3) RIGHT TO BE HEARD.—Each person de25 scribed in section 1109 of title 11, United States 


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1 Code, may appear and be heard on any issue in a 

2 case under this section. 

3 (c) JURISDICTION.—The district courts of the United 

4 States shall have jurisdiction of all cases under this sec5 tion. 

6 (d) RETROACTIVITY.— 

7 (1) IN GENERAL.—If a court has entered an 

8 order approving compensation under a case com9 menced under section 304 of PROMESA (48 U.S.C. 

10 2164), each professional person subject to the order 

11 shall file a verified statement in accordance with 

12 subsection (a) not later than 60 days after the date 

13 of enactment of this Act. 

14 (2) NO DELAY.—A court may not delay any 

15 proceeding in connection with a case commenced 

16 under section 304 of PROMESA (48 U.S.C. 2164) 

17 pending the filing of a verified statement under 

18 paragraph (1). 

19 (e) LIMITATION ON COMPENSATION.— 

20 (1) IN GENERAL.—In a voluntary case com21 menced under section 304 of PROMESA (48 U.S.C. 

22 2164), in connection with the review and approval of 

23 professional compensation under section 316 or 317 

24 of PROMESA (48 U.S.C. 2176, 2177), the court 

25 may deny allowance of compensation for services and 


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1 reimbursement of expenses, accruing after the date 

2 of the enactment of this Act of a professional person 

3 if the professional person— 

4 (A) has failed to file statements of connec5 tions required by subsection (a) or has filed in6 adequate statements of connections; 

7 (B) except as provided in paragraph (3), is 

8 on or after the date of enactment of this Act 

9 not a disinterested person, as defined in section 

10 101 of title 11, United States Code; or 

11 (C) except as provided in paragraph (3), 

12 represents, or holds an interest adverse to, the 

13 interest of the estate with respect to the matter 

14 on which such professional person is employed. 

15 (2) CONSIDERATIONS.—In making a determina16 tion under paragraph (1), the court may take into 

17 consideration whether the services and expenses are 

18 in the best interests of creditors and the estate. 

19 (3) COMMITTEE PROFESSIONAL STANDARDS.— 

20 An attorney or accountant described in section 

21 1103(b) of title 11, United States Code, shall be 

22 deemed to have violated paragraph (1) if the attorVerDate Sep 11 2014 00:11 Feb 26, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1192.RFS H1192

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1 ney or accountant violates section 1103(b) of title 

2 11, United States Code. 

Passed the House of Representatives February 24, 

2021. 

Attest: CHERYL L. JOHNSON, 

Clerk. 


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