II 

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’’). 

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

3 SECTION 1. SHORT TITLE. 

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

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


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1 SEC. 2. DISCLOSURE BY PROFESSIONAL PERSONS SEEKING 

2 APPROVAL OF COMPENSATION UNDER SEC3 TION 316 OR 317 OF PROMESA. 

4 (a) REQUIRED DISCLOSURE.— 

5 (1) IN GENERAL.—In a voluntary case com6 menced under section 304 of PROMESA (48 U.S.C. 

7 2164), no attorney, accountant, appraiser, auc8 tioneer, agent, consultant, or other professional per9 son may be compensated under section 316 or 317 

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

11 making a request for compensation, the professional 

12 person has submitted a verified statement con13 forming to the disclosure requirements of rule 

14 2014(a) of the Federal Rules of Bankruptcy Proce15 dure setting forth the connection of the professional 

16 person with— 

17 (A) the debtor; 

18 (B) any creditor; 

19 (C) any other party in interest, including 

20 any attorney or accountant; 

21 (D) the Financial Oversight and Manage22 ment Board established in accordance with sec23 tion 101 of PROMESA (48 U.S.C. 2121); and 

24 (E) any person employed by the Oversight 

25 Board described in subparagraph (D). 


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1 (2) OTHER REQUIREMENTS.—A professional 

2 person that submits a statement under paragraph 

3 (1) shall— 

4 (A) supplement the statement with any ad5 ditional relevant information that becomes 

6 known to the person; and 

7 (B) file annually a notice confirming the 

8 accuracy of the statement. 

9 (b) REVIEW.— 

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

11 shall review each verified statement submitted pur12 suant to subsection (a) and may file with the court 

13 comments on such verified statements before the 

14 professionals filing such statements seek compensa15 tion under section 316 or 317 of PROMESA (48 

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

17 (2) OBJECTION.—The United States Trustee 

18 may object to compensation applications filed under 

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

20 2177) that fail to satisfy the requirements of sub21 section (e). 

22 (3) RIGHT TO BE HEARD.—Each person de23 scribed in section 1109 of title 11, United States 

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

25 case under this section. 


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

2 States shall have jurisdiction of all cases under this sec3 tion. 

4 (d) RETROACTIVITY.— 

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

6 order approving compensation under a case com7 menced under section 304 of PROMESA (48 U.S.C. 

8 2164), each professional person subject to the order 

9 shall file a verified statement in accordance with 

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

11 of enactment of this Act. 

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

13 proceeding in connection with a case commenced 

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

15 pending the filing of a verified statement under 

16 paragraph (1). 

17 (e) LIMITATION ON COMPENSATION.— 

18 (1) IN GENERAL.—In a voluntary case com19 menced under section 304 of PROMESA (48 U.S.C. 

20 2164), in connection with the review and approval of 

21 professional compensation under section 316 or 317 

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

23 may deny allowance of compensation for services and 

24 reimbursement of expenses, accruing after the date 


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1 of the enactment of this Act of a professional person 

2 if the professional person— 

3 (A) has failed to file statements of connec4 tions required by subsection (a) or has filed in5 adequate statements of connections; 

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

7 on or after the date of enactment of this Act 

8 not a disinterested person, as defined in section 

9 101 of title 11, United States Code; or 

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

11 represents, or holds an interest adverse to, the 

12 interest of the estate with respect to the matter 

13 on which such professional person is employed. 

14 (2) CONSIDERATIONS.—In making a determina15 tion under paragraph (1), the court may take into 

16 consideration whether the services and expenses are 

17 in the best interests of creditors and the estate. 

18 (3) COMMITTEE PROFESSIONAL STANDARDS.— 

19 An attorney or accountant described in section 

20 1103(b) of title 11, United States Code, shall be 

21 deemed to have violated paragraph (1) if the attor22 ney or accountant violates section 1103(b) of title 

23 11, United States Code. 


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•HR 1192 RS

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) DEFINITIONS.—In this section: 

8 (1) LIST OF MATERIAL INTERESTED PARTIES.— 

9 The term ‘‘List of Material Interested Parties’’ means 

10 the List of Material Interested Parties established 

11 under subsection (c)(1). 

12 (2) OVERSIGHT BOARD.—The term ‘‘Oversight 

13 Board’’ has the meaning given the term in section 5 

14 of PROMESA (48 U.S.C. 2104). 

15 (b) REQUIRED DISCLOSURE.— 

16 (1) IN GENERAL.—In a case commenced under 

17 section 304 of PROMESA (48 U.S.C. 2164), no attor18 ney, accountant, appraiser, auctioneer, agent, or other 

19 professional person may be compensated under section 

20 316 or 317 of that Act (48 U.S.C. 2176, 2177) unless 

21 prior to making a request for compensation, the pro22 fessional person has filed with the court a verified 

23 statement conforming to the disclosure requirements of 

24 rule 2014(a) of the Federal Rules of Bankruptcy Pro25 cedure setting forth the connection of the professional 


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1 person with any entity or person on the List of Mate2 rial Interested Parties. 

3 (2) SUPPLEMENT.—A professional person that 

4 submits a statement under paragraph (1) shall 

5 promptly supplement the statement with any addi6 tional relevant information that becomes known to the 

7 person. 

8 (3) DISCLOSURE.—Subject to any other applica9 ble law, rule, or regulation, a professional person that 

10 fails to file or update a statement required under 

11 paragraph (1) or files a statement that the court de12 termines does not represent a good faith effort to com13 ply with this section shall disclose such failure in any 

14 filing required to conform to the disclosure require15 ments under rule 2014(a) of the Federal Rules of 

16 Bankruptcy Procedure. 

17 (c) LIST OF MATERIAL INTERESTED PARTIES.— 

18 (1) PREPARATION.—Not later than 30 days after 

19 the date of enactment of this Act, the Oversight Board 

20 shall establish a List of Material Interested Parties 

21 subject to— 

22 (A) the approval of the court; and 

23 (B) the right of the United States trustee or 

24 any party in interest to be heard on the ap25 proval. 


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1 (2) INCLUSIONS.—Except as provided in para2 graph (3), the List of Material Interested Parties shall 

3 include— 

4 (A) the debtor; 

5 (B) any creditor; 

6 (C) any other party in interest; 

7 (D) any attorney or accountant of— 

8 (i) the debtor; 

9 (ii) any creditor; or 

10 (iii) any other party in interest; 

11 (E) the United States trustee and any per12 son employed in the office of the United States 

13 trustee; and 

14 (F) the Oversight Board, including the 

15 members, the Executive Director, and the em16 ployees of the Oversight Board. 

17 (3) EXCLUSIONS.—The List of Material Inter18 ested Parties may not include any person with a 

19 claim, the amount of which is below a threshold dollar 

20 amount established by the court that is consistent 

21 with the purpose of this Act. 

22 (d) REVIEW.— 

23 (1) IN GENERAL.—The United States trustee 

24 shall review each verified statement submitted pursu25 ant to subsection (b) and may file with the court comVerDate Sep 11 2014 23:08 Dec 13, 2021 Jkt 029200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6203 E:\BILLS\H1192.RS H1192

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1 ments on such verified statements before the profes2 sionals filing such statements seek compensation 

3 under section 316 or 317 of PROMESA (48 U.S.C. 

4 2176, 2177). 

5 (2) OBJECTION.—The United States trustee may 

6 object to applications filed under section 316 or 317 

7 of PROMESA (48 U.S.C. 2176, 2177) that fail to sat8 isfy the requirements of subsection (b). 

9 (e) LIMITATION ON COMPENSATION.—In a case com10 menced under section 304 of PROMESA (48 U.S.C. 2164), 

11 in connection with the review and approval of professional 

12 compensation under section 316 or 317 of PROMESA (48 

13 U.S.C. 2176, 2177) filed after the date of enactment of this 

14 Act, the court may deny allowance of compensation or reim15 bursement of expenses if— 

16 (1) the professional person has failed to file the 

17 verified disclosure statements required under sub18 section (b)(1) or has filed inadequate disclosure state19 ments under that subsection; or 

20 (2) during the professional person’s employment 

21 in connection with the case, the professional person— 

22 (A) is not a disinterested person (as defined 

23 in section 101 of title 11, United States Code) 

24 relative to any entity or person on the List of 

25 Material Interested Parties; or 


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1 (B) represents or holds an adverse interest 

2 in connection with the case. 


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Calendar No. 182 

117TH CONGRESS 

1ST SESSION H. R. 1192 

[Report No. 117–48] 

AN ACT 

To impose requirements on the payment of com-

‘‘PROMESA’’). nomic Stability Act (commonly known as Puerto Rico Oversight Management and Ecovoluntary cases commenced under title III of the pensation to professional persons employed in 

DECEMBER 13, 2021 

Reported with an amendment 


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