II 

116TH CONGRESS 

1ST SESSION S. 1675 

To impose requirements on the payment of compensation to professional 

persons employed in voluntary cases commenced under title III of PROMESA. 

IN THE SENATE OF THE UNITED STATES 

MAY 23 (legislative day, MAY 22), 2019 

Mr. MENENDEZ (for himself, Mr. RUBIO, Mr. BLUMENTHAL, and Mr. KENNEDY) introduced the following bill; which was read twice and referred 

to the Committee on Energy and Natural Resources 

A BILL 

To impose requirements on the payment of compensation 

to professional persons employed in voluntary cases commenced under title III of 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 2019’’ or ‘‘PRRADA’’. 

6 SEC. 2. DISCLOSURE BY PROFESSIONAL PERSONS SEEKING 

7 APPROVAL OF COMPENSATION UNDER SEC8 TION 316 OR 317 OF PROMESA. 

9 (a) REQUIRED DISCLOSURE.— 


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1 (1) IN GENERAL.—In a voluntary case com2 menced under section 304 of PROMESA (48 U.S.C. 

3 2164), no attorney, accountant, appraiser, auc4 tioneer, agent, consultant, or other professional per5 son may be compensated under section 316 or 317 

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

7 making a request for compensation, the professional 

8 person has submitted a verified statement con9 forming to the disclosure requirements of rule 

10 2014(a) of the Federal Rules of Bankruptcy Proce11 dure setting forth the connection of the professional 

12 person with— 

13 (A) the debtor; 

14 (B) any creditor; 

15 (C) any other party in interest, including 

16 any attorney or accountant; 

17 (D) the Financial Oversight and Manage18 ment Board established in accordance with sec19 tion 101 of PROMESA (48 U.S.C. 2121); and 

20 (E) any person employed by the Oversight 

21 Board described in subparagraph (D). 

22 (2) OTHER REQUIREMENTS.—A professional 

23 person that submits a statement under paragraph 

24 (1) shall— 


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1 (A) supplement the statement with any ad2 ditional relevant information that becomes 

3 known to the person; and 

4 (B) file annually a notice confirming the 

5 accuracy of the statement. 

6 (b) REVIEW.— 

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

8 shall review each verified statement submitted pur9 suant to subsection (a) and may file with the court 

10 comments on such verified statements before the 

11 professionals filing such statements seek compensa12 tion under section 316 or 317 of PROMESA (48 

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

14 (2) OBJECTION.—The United States Trustee 

15 may object to compensation applications filed under 

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

17 2177) that fail to satisfy the requirements of sub18 section (e). 

19 (3) RIGHT TO BE HEARD.—Each person de20 scribed in section 1109 of title 11, United States 

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

22 case under this section. 

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

24 States shall have jurisdiction of all cases under this sec25 tion. 


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1 (d) RETROACTIVITY.— 

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

3 order approving compensation under a case com4 menced under section 304 of PROMESA (48 U.S.C. 

5 2164), each professional person subject to the order 

6 shall file a verified statement in accordance with 

7 subsection (a) not later than 30 days after the date 

8 of enactment of this Act. 

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

10 proceeding in connection with a case commenced 

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

12 pending the filing of a verified statement under 

13 paragraph (1). 

14 (e) LIMITATION ON COMPENSATION.— 

15 (1) IN GENERAL.—In a voluntary case com16 menced under section 304 of PROMESA (48 U.S.C. 

17 2164), in connection with the review and approval of 

18 professional compensation under section 316 or 317 

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

20 may deny allowance of compensation for services and 

21 reimbursement of expenses, accruing after the date 

22 of the enactment of this Act of a professional person 

23 if the professional person— 


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1 (A) has failed to file statements of connec2 tions required by subsection (a) or has filed in3 adequate statements of connections; 

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

5 on or after the date of enactment of this Act 

6 not a disinterested person, as defined in section 

7 101 of title 11, United States Code; or 

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

9 represents, or holds an interest adverse to, the 

10 interest of the estate with respect to the matter 

11 on which such professional person is employed. 

12 (2) CONSIDERATIONS.—In making a determina13 tion under paragraph (1), the court may take into 

14 consideration whether the services and expenses are 

15 in the best interests of creditors and the estate. 

16 (3) COMMITTEE PROFESSIONAL STANDARDS.— 

17 An attorney or accountant described in section 

18 1103(b) of title 11, United States Code, shall be 

19 deemed to have violated paragraph (1) if the attor20 ney or accountant violates section 1103(b) of title 

21 11, United States Code. 

Æ 


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