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[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1192 Enrolled Bill (ENR)]

        H.R.1192

                    One Hundred Seventeenth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

           Begun and held at the City of Washington on Monday,
          the third day of January, two thousand and twenty-two

                                 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,
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.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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