II 
Calendar No. 182 
117TH CONGRESS 
1ST SESSION H. R. 1192 
[Report No. 117–48] 
IN THE SENATE OF THE UNITED STATES 
FEBRUARY 25, 2021 
Received; read twice and referred to the Committee on Energy and Natural 
Resources 
DECEMBER 13, 2021 
Reported by Mr. MANCHIN, with an amendment 
[Strike out all after the enacting clause and insert the part printed in italic] 
AN ACT 
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. 
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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 SEC-
TION 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 attor-
ney, 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 pro-
fessional person has filed with the court a verified 
statement conforming to the disclosure requirements of 
rule 2014(a) of the Federal Rules of Bankruptcy Pro-
cedure setting forth the connection of the professional 
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person with any entity or person on the List of Mate-
rial Interested Parties. 
(2) SUPPLEMENT.—A professional person that 
submits a statement under paragraph (1) shall 
promptly supplement the statement with any addi-
tional relevant information that becomes known to the 
person. 
(3) DISCLOSURE.—Subject to any other applica-
ble 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 de-
termines does not represent a good faith effort to com-
ply with this section shall disclose such failure in any 
filing required to conform to the disclosure require-
ments under rule 2014(a) of the Federal Rules of 
Bankruptcy Procedure. 
(c) LIST OF MATERIAL INTERESTED PARTIES.— 
(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 ap-
proval. 
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(2) INCLUSIONS.—Except as provided in para-
graph (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 per-
son employed in the office of the United States 
trustee; and 
(F) the Oversight Board, including the 
members, the Executive Director, and the em-
ployees of the Oversight Board. 
(3) EXCLUSIONS.—The List of Material Inter-
ested 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 pursu-
ant to subsection (b) and may file with the court com-
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ments on such verified statements before the profes-
sionals 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 sat-
isfy the requirements of subsection (b). 
(e) LIMITATION ON COMPENSATION.—In a 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) filed after the date of enactment of this 
Act, the court may deny allowance of compensation or reim-
bursement of expenses if— 
(1) the professional person has failed to file the 
verified disclosure statements required under sub-
section (b)(1) or has filed inadequate disclosure state-
ments 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 
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(B) represents or holds an adverse interest 
in connection with the case. 
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Calendar No. 182 
117TH CONGRESS 
1ST SESSION 
H. R. 1192 
[Report No. 117–48] 
AN ACT 
To impose requirements on the payment of com-
pensation to professional persons employed in 
voluntary cases commenced under title III of the 
Puerto Rico Oversight Management and Eco-
nomic 
Stability 
Act 
(commonly 
known 
as 
‘‘PROMESA’’). 
DECEMBER 13, 2021 
Reported with an amendment 
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