I 

115TH CONGRESS 

2D SESSION H. R. 7355 

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 HOUSE OF REPRESENTATIVES 

DECEMBER 19, 2018 

Ms. VELA ́ZQUEZ (for herself, Miss GONZA ́LEZ-COLO ́N of Puerto Rico, Mr. GRIJALVA, Mr. BISHOP of Utah, and Mr. BIGGS) introduced the following 

bill; which was referred to the Committee on the Judiciary 

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 2018’’ or ‘‘(PRRADA)’’. 


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1 SEC. 2. DISCLOSURE BY PROFESSIONAL PERSONS EM2 PLOYED BY COURT ORDER. 

3 (a) REQUIRED DISCLOSURE.—In a voluntary case 

4 commenced under section 304 of the Puerto Rico Over5 sight Management and Economic Stability Act (commonly 

6 known as ‘‘PROMESA’’; 48 U.S.C. 2164), no attorneys, 

7 accountants, appraisers, auctioneers, agents, consultants, 

8 or other professional persons shall be compensated under 

9 section 316 of PROMESA (48 U.S.C. 2176) unless prior 

10 to making a request for compensation, such a professional 

11 person has submitted a verified statement conforming to 

12 the disclosure requirements of rule 2014(a) of the Federal 

13 Rules of Bankruptcy Procedure setting forth the profes14 sional person’s connections with the debtor, creditors, any 

15 other parties in interest, their respective attorneys and ac16 countants, the Oversight Board, and any person employed 

17 by the Oversight Board. Such statement shall include in18 formation on the identity of each entity or person with 

19 whom such professional person has a connection. Such 

20 professional person shall be required— 

21 (1) to supplement such verified statement as 

22 additional relevant information becomes known to 

23 such person; and 

24 (2) to file annually a notice confirming the ac25 curacy of such statement. 


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1 (b) REVIEW.—The United States Trustee shall re2 view each verified statement submitted pursuant to sub3 section (a) and may file with the court comments on such 

4 verified statements before the professionals filing such 

5 statements seek compensation under section 316 of 

6 PROMESA (48 U.S.C. 2176). The United States Trustee 

7 may also object to compensation applications filed under 

8 section 316 of PROMESA (48 U.S.C. 2176) that fail to 

9 satisfy the requirements of subsection (d) of this Act. 

10 Each person having standing under section 1109 of title 

11 11 of the United States Code shall also have standing 

12 under this section. The district court shall have jurisdic13 tion to adjudicate all matters arising under this section. 

14 (c) RETROACTIVITY.—If, at the time subsection (a) 

15 is enacted, the court has entered orders approving com16 pensation under cases commenced under section 304 of 

17 PROMESA (48 U.S.C. 2164) each professional person 

18 previously awarded compensation shall file a verified state19 ment in accordance with subsection (a) not later than 30 

20 days after such person’s first request for compensation 

21 under section 316 of PROMESA (48 U.S.C. 2176) occur22 ring after the date of the enactment of this Act, except 

23 that the court may not delay any proceeding in connection 

24 with a case commenced under section 304 of PROMESA 


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1 (48 U.S.C. 2164) pending the filing of such verified state2 ments. 

3 (d) LIMITATION ON COMPENSATION.—In a voluntary 

4 case commenced under section 304 of PROMESA (48 

5 U.S.C. 2164), in connection with the review and approval 

6 of professional compensation under section 316 of 

7 PROMESA (48 U.S.C. 2176), the court may deny allow8 ance of compensation for services and reimbursement of 

9 expenses, accruing after the date of the enactment of this 

10 Act of a professional person if such professional person— 

11 (1) has failed to file statements of connections 

12 required by subsection (a) or has filed inadequate 

13 statements of connections; 

14 (2) is at any time during such professional per15 son’s employment in such case not a disinterested 

16 person as defined in section 101(14) of title 11 of 

17 the United States Code; or 

18 (3) represents, or holds an interest adverse to, 

19 the interest of the estate with respect to the matter 

20 on which such professional person is employed, ex21 cept that the qualification standards for committee 

22 professionals shall be those set forth in section 

23 1103(b) of title 11 of the United States Code. 

Æ 


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