PRRADA

Bill: 116-hr-683
Sponsor: full_name: Rep. Velazquez, Nydia M. [D-NY-7]
Introduced: 2019-01-17
Policy area: Law
Subjects: Bankruptcy

Caribbean area

Debt collection

Government ethics and transparency, public corruption

Lawyers and legal services

Legal fees and court costs

Puerto Rico

U.S. territories and protectorates
Latest action: action_date: 2020-12-09
text: Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources.

Summaries:
action_date: 2019-01-17
action_desc: Introduced in House
text: <p><b>Puerto Rico Recovery Accuracy in Disclosures Act of 2019 or (PRRADA</b>)</p> <p>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. </p>

action_date: 2020-12-08
action_desc: Passed House
text: <p><b>Puerto Rico Recovery Accuracy in Disclosures Act of 2020 or PRRADA</b></p> <p>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. </p>

tv_txt: I 116th CONGRESS 1st Session H. R. 683 IN THE HOUSE OF REPRESENTATIVES January 17, 2019 Ms. Velázquez (for herself, Miss González-Colón 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. Short title This Act may be cited as the Puerto Rico Recovery Accuracy in Disclosures Act of 2019 or (PRRADA) . 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.

tv_txt: I 116th CONGRESS 2d Session H. R. 683 IN THE HOUSE OF REPRESENTATIVES AN ACT 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. Short title This Act may be cited as the Puerto Rico Recovery Accuracy in Disclosures Act of 2020 or PRRADA . 2. Disclosure by professional persons seeking approval of compensation under section 316 or 317 of PROMESA (a) Required disclosure (1) In general In a voluntary case commenced under section 304 of PROMESA ( 48 U.S.C. 2164 ), no attorney, accountant, appraiser, auctioneer, agent, consultant, 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 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 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 Management Board established in accordance with section 101 of PROMESA ( 48 U.S.C. 2121 ); and (E) any person employed by the Oversight Board described in subparagraph (D). (2) Other requirements A professional person that submits a statement under paragraph (1) shall— (A) supplement the statement with any additional 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 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 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 subsection (e). (3) Right to be heard Each person described in section 1109 of title 11, United States Code, may appear and be heard on any issue in a case under this section. (c) Jurisdiction The district courts of the United States shall have jurisdiction of all cases under this section. (d) Retroactivity (1) In general If a court has entered an order approving compensation under a case commenced 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 commenced 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 of the enactment of this Act of a professional person if the professional person— (A) has failed to file statements of connections required by subsection (a) or has filed inadequate 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 determination 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 attorney or accountant violates section 1103(b) of title 11, United States Code.

Passed the House of Representatives December 8, 2020. Cheryl L. Johnson, Clerk.

tv_txt: IIB 116th CONGRESS 2d Session H. R. 683 IN THE SENATE OF THE UNITED STATES December 9, 2020 Received; read twice and referred to the Committee on Energy and Natural Resources AN ACT 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. Short title This Act may be cited as the Puerto Rico Recovery Accuracy in Disclosures Act of 2020 or PRRADA . 2. Disclosure by professional persons seeking approval of compensation under section 316 or 317 of PROMESA (a) Required disclosure (1) In general In a voluntary case commenced under section 304 of PROMESA ( 48 U.S.C. 2164 ), no attorney, accountant, appraiser, auctioneer, agent, consultant, 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 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 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 Management Board established in accordance with section 101 of PROMESA ( 48 U.S.C. 2121 ); and (E) any person employed by the Oversight Board described in subparagraph (D). (2) Other requirements A professional person that submits a statement under paragraph (1) shall— (A) supplement the statement with any additional 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 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 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 subsection (e). (3) Right to be heard Each person described in section 1109 of title 11, United States Code, may appear and be heard on any issue in a case under this section. (c) Jurisdiction The district courts of the United States shall have jurisdiction of all cases under this section. (d) Retroactivity (1) In general If a court has entered an order approving compensation under a case commenced 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 commenced 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 of the enactment of this Act of a professional person if the professional person— (A) has failed to file statements of connections required by subsection (a) or has filed inadequate 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 determination 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 attorney or accountant violates section 1103(b) of title 11, United States Code.

Passed the House of Representatives December 8, 2020. Cheryl L. Johnson, Clerk