Title: PRRADA
Policy area: Law

Summary:
Puerto Rico Recovery Accuracy in Disclosures Act of 2018 or PRRADA
This bill requires professionals employed in debt adjustment cases involving Puerto Rico to file verified statements disclosing their connections with the debtor, creditors, and other interested parties before seeking compensation for their services.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7355 Introduced in House (IH)]

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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. Velazquez (for herself, Miss Gonzalez-Colon 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'').

    Be it enacted by the Senate and House of Representatives 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 2018'' or ``(PRRADA)''.

SEC. 2. DISCLOSURE BY PROFESSIONAL PERSONS EMPLOYED BY COURT ORDER.

    (a) Required Disclosure.--In a voluntary case commenced under 
section 304 of the Puerto Rico Oversight Management and Economic 
Stability Act (commonly known as ``PROMESA''; 48 U.S.C. 2164), no 
attorneys, accountants, appraisers, auctioneers, agents, consultants, 
or other professional persons shall be compensated under section 316 of 
PROMESA (48 U.S.C. 2176) unless prior to making a request for 
compensation, such a professional person has submitted a verified 
statement conforming to the disclosure requirements of rule 2014(a) of 
the Federal Rules of Bankruptcy Procedure setting forth the 
professional person's connections with the debtor, creditors, any other 
parties in interest, their respective attorneys and accountants, the 
Oversight Board, and any person employed by the Oversight Board. Such 
statement shall include information on the identity of each entity or 
person with whom such professional person has a connection. Such 
professional person shall be required--
            (1) to supplement such verified statement as additional 
        relevant information becomes known to such person; and
            (2) to file annually a notice confirming the accuracy of 
        such statement.
    (b) Review.--The United States Trustee shall review each verified 
statement submitted pursuant to subsection (a) and may file with the 
court comments on such verified statements before the professionals 
filing such statements seek compensation under section 316 of PROMESA 
(48 U.S.C. 2176). The United States Trustee may also object to 
compensation applications filed under section 316 of PROMESA (48 U.S.C. 
2176) that fail to satisfy the requirements of subsection (d) of this 
Act. Each person having standing under section 1109 of title 11 of the 
United States Code shall also have standing under this section. The 
district court shall have jurisdiction to adjudicate all matters 
arising under this section.
    (c) Retroactivity.--If, at the time subsection (a) is enacted, the 
court has entered orders approving compensation under cases commenced 
under section 304 of PROMESA (48 U.S.C. 2164) each professional person 
previously awarded compensation shall file a verified statement in 
accordance with subsection (a) not later than 30 days after such 
person's first request for compensation under section 316 of PROMESA 
(48 U.S.C. 2176) occurring after the date of the enactment of this Act, 
except that the 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 such verified statements.
    (d) Limitation on Compensation.--In a voluntary case commenced 
under section 304 of PROMESA (48 U.S.C. 2164), in connection with the 
review and approval of professional compensation under section 316 of 
PROMESA (48 U.S.C. 2176), the court may deny allowance of compensation 
for services and reimbursement of expenses, accruing after the date of 
the enactment of this Act of a professional person if such professional 
person--
            (1) has failed to file statements of connections required 
        by subsection (a) or has filed inadequate statements of 
        connections;
            (2) is at any time during such professional person's 
        employment in such case not a disinterested person as defined 
        in section 101(14) of title 11 of the United States Code; or
            (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, except that the qualification 
        standards for committee professionals shall be those set forth 
        in section 1103(b) of title 11 of the United States Code.
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