All Roll Calls
Yes: 429 • No: 0
117-hr-1192117th CongressWALLET
PRRADA
Sponsored By: Representative Velázquez, Nydia M. [D-NY-7]
Became Law
Summary
Stricter disclosure rules for professionals in Puerto Rico debt cases. This law requires professionals seeking fees under PROMESA sections 316 or 317 in Title III cases to file a verified statement that follows Federal Rules of Bankruptcy Procedure Rule 2014(a) and to promptly update it when new relevant information arises.
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- Professionals (lawyers, accountants, and others) must disclose any connections to people or entities on the court-approved List of Material Interested Parties before requesting compensation and must quickly supplement the statement with new information.
- The Oversight Board must establish the List of Material Interested Parties within 30 days and the court must approve it. The United States trustee or any party in interest may be heard and the List includes the debtor, creditors, their advisers, the United States trustee, and Oversight Board members and staff, with a court-set small-claim threshold.
- The United States trustee will review verified statements, may file comments, and can object to fee applications that fail the disclosure rules. In Title III cases under section 304 the court may deny allowance of fees or reimbursement if a professional failed to disclose, filed an inadequate statement, or is not a "disinterested person" as defined in section 101 of title 11.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 1 costs, 1 mixed.
New conflict rules for Puerto Rico case professionals
The law sets strict conflict disclosures for professionals in Puerto Rico Title III debt cases. Before asking the court to pay you, you must file a sworn disclosure under bankruptcy Rule 2014(a) naming ties to anyone on the court-approved list. You must update the filing quickly if new ties appear, and state if you missed a filing or update. The U.S. trustee reviews these statements and can object. For requests made after enactment, the court can deny fees or expenses if disclosures are missing or weak, you are not disinterested, or you hold an adverse interest.
Court-approved list for Puerto Rico debt cases
The Oversight Board must create a court-approved list of interested parties within 30 days of enactment. The court reviews the list, and the U.S. trustee and any party in interest can be heard. The list includes the debtor, creditors, other parties in interest, their lawyers and accountants, the U.S. trustee staff, and the Oversight Board and its staff. The court can set a dollar limit and leave off people with very small claims.
Sponsors & CoSponsors
Sponsor
Velázquez, Nydia M. [D-NY-7]
NY • D
Cosponsors
Rep. Biggs, Andy [R-AZ-5]
AZ • R
Sponsored 2/22/2021
Rep. Raskin, Jamie [D-MD-8]
MD • D
Sponsored 2/22/2021
Rep. Grijalva, Raúl M. [D-AZ-7]
AZ • D
Sponsored 2/22/2021
Rep. Cicilline, David N. [D-RI-1]
RI • D
Sponsored 2/22/2021
Rep. Jayapal, Pramila [D-WA-7]
WA • D
Sponsored 2/22/2021
Resident Commissioner González-Colón, Jenniffer [R-PR-At Large]
PR • R
Sponsored 2/22/2021
Rep. Soto, Darren [D-FL-9]
FL • D
Sponsored 2/23/2021
Rep. Swalwell, Eric [D-CA-14]
CA • D
Sponsored 2/24/2021
Roll Call Votes
house vote • 2/24/2021
On Motion to Suspend the Rules and Pass
Yes: 429 • No: 0