II 

117TH CONGRESS 

1ST SESSION S. 375 

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’’). 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 23, 2021 

Mr. MENENDEZ (for himself, Ms. HIRONO, Mr. BLUMENTHAL, Mr. RUBIO, 

and Ms. STABENOW) 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 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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•S 375 IS

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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•S 375 IS

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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•S 375 IS

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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•S 375 IS

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. 

Æ 


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