US Codex
Bill
Notes

H.R. 683 — what changed

Puerto Rico Recovery Accuracy in Disclosures Act of 2020

From Introduced in House to Engrossed in House. 2 sections amended between Introduced in House and Engrossed in House.

Section 1 Short title

changed This Act may be cited as the “Puerto Rico Recovery Accuracy in Disclosures Act of 2019” 2020” or “(PRRADA)”.“PRRADA”.

Sec. 2 Disclosure by professional persons seeking approval of compensation under section 316 or 317 of PROMESA

(a)
added Required disclosure—
(1)
added 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)
added the debtor;
(B)
added any creditor;
(C)
added any other party in interest, including any attorney or accountant;
(D)
added the Financial Oversight and Management Board established in accordance with section 101 of PROMESA (48 U.S.C. 2121); and
(E)
added any person employed by the Oversight Board described in subparagraph (D).
(a)
removed 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—
(2)
changed Other requirements— to supplement such verified A professional person that submits a statement as additional relevant information becomes known to such person; andunder paragraph (1) shall—
(A)
added supplement the statement with any additional relevant information that becomes known to the person; and
(B)
added file annually a notice confirming the accuracy of the statement.
(b)
added Review—
(1)
added 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)
added 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)
added 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.
(2)
removed to file annually a notice confirming the accuracy of such statement.
(b)
removed 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)
changed Retroactivity—Jurisdiction— 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 The district courts of the enactment United States shall have jurisdiction of this Act, except that the court may not delay any proceeding in connection with a case commenced all cases under section 304 of PROMESA (48 U.S.C. 2164) pending the filing of such verified statements.this section.
(d)
added Retroactivity—
(1)
added 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)
added 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)
added Limitation on compensation—
(1)
added 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—
(d)
removed 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—
(A)
renumbered was (5)(3) has failed to file statements of connections required by subsection (a) or has filed inadequate statements of connections;
(B)
added 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)
added 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)
added 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)
added 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.
(2)
removed 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)
removed 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.