I 
117TH CONGRESS 
1ST SESSION H. R. 1192 
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 (com-
monly known as ‘‘PROMESA’’). 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 22, 2021 
Ms. VELA´ZQUEZ (for herself, Mr. BIGGS, Mr. RASKIN, Mr. GRIJALVA, Mr. 
CICILLINE, Ms. JAYAPAL, and Miss GONZA´LEZ-COLO´N) 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 com-
menced 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 Representa-
tives 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’’. 
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SEC. 2. DISCLOSURE BY PROFESSIONAL PERSONS SEEKING 
APPROVAL OF COMPENSATION UNDER SEC-
TION 316 OR 317 OF PROMESA. 
(a) REQUIRED DISCLOSURE.— 
(1) IN
GENERAL.—In a voluntary case com-
menced under section 304 of PROMESA (48 U.S.C. 
2164), no attorney, accountant, appraiser, auc-
tioneer, agent, consultant, or other professional per-
son 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 submitted a verified statement con-
forming to the disclosure requirements of rule 
2014(a) of the Federal Rules of Bankruptcy Proce-
dure setting forth the connection of the professional 
person with— 
(A) the debtor; 
(B) any creditor; 
(C) any other party in interest, including 
any attorney or accountant; 
(D) the Financial Oversight and Manage-
ment Board established in accordance with sec-
tion 101 of PROMESA (48 U.S.C. 2121); and 
(E) any person employed by the Oversight 
Board described in subparagraph (D). 
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(2) OTHER
REQUIREMENTS.—A professional 
person that submits a statement under paragraph 
(1) shall— 
(A) supplement the statement with any ad-
ditional relevant information that becomes 
known to the person; and 
(B) file annually a notice confirming the 
accuracy of the statement. 
(b) REVIEW.— 
(1) IN GENERAL.—The United States Trustee 
shall review each verified statement submitted pur-
suant to subsection (a) and may file with the court 
comments on such verified statements before the 
professionals filing such statements seek compensa-
tion under section 316 or 317 of PROMESA (48 
U.S.C. 2176, 2177). 
(2) OBJECTION.—The United States Trustee 
may object to compensation applications filed under 
section 316 or 317 of PROMESA (48 U.S.C. 2176, 
2177) that fail to satisfy the requirements of sub-
section (e). 
(3) RIGHT TO BE HEARD.—Each person de-
scribed in section 1109 of title 11, United States 
Code, may appear and be heard on any issue in a 
case under this section. 
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(c) JURISDICTION.—The district courts of the United 
States shall have jurisdiction of all cases under this sec-
tion. 
(d) RETROACTIVITY.— 
(1) IN GENERAL.—If a court has entered an 
order approving compensation under a case com-
menced under section 304 of PROMESA (48 U.S.C. 
2164), each professional person subject to the order 
shall file a verified statement in accordance with 
subsection (a) not later than 60 days after the date 
of enactment of this Act. 
(2) NO DELAY.—A court may not delay any 
proceeding in connection with a case commenced 
under section 304 of PROMESA (48 U.S.C. 2164) 
pending the filing of a verified statement under 
paragraph (1). 
(e) LIMITATION ON COMPENSATION.— 
(1) IN
GENERAL.—In a voluntary case com-
menced 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), the court 
may deny allowance of compensation for services and 
reimbursement of expenses, accruing after the date 
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of the enactment of this Act of a professional person 
if the professional person— 
(A) has failed to file statements of connec-
tions required by subsection (a) or has filed in-
adequate statements of connections; 
(B) except as provided in paragraph (3), is 
on or after the date of enactment of this Act 
not a disinterested person, as defined in section 
101 of title 11, United States Code; or 
(C) except as provided in paragraph (3), 
represents, or holds an interest adverse to, the 
interest of the estate with respect to the matter 
on which such professional person is employed. 
(2) CONSIDERATIONS.—In making a determina-
tion under paragraph (1), the court may take into 
consideration whether the services and expenses are 
in the best interests of creditors and the estate. 
(3) COMMITTEE PROFESSIONAL STANDARDS.— 
An attorney or accountant described in section 
1103(b) of title 11, United States Code, shall be 
deemed to have violated paragraph (1) if the attor-
ney or accountant violates section 1103(b) of title 
11, United States Code. 
Æ 
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