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.— 
H. R. 1192—2 

(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 
H. R. 1192—3 

(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.