Sheila Jackson Lee: “As a senior member of the Judiciary, Committee, I rise in strong support of H.R. 683, the ``Puerto Rico Recovery…”

“As a senior member of the Judiciary, Committee, I rise in strong support of H.R. 683, the ``Puerto Rico Recovery Accuracy in Disclosures Act of 2019'' or ``PRRADA Act,'' which conditions compensation of professional persons retained under the congressionally passed ``Puerto Rico Oversight, Management, and Economic Stability Act'' (``PROMESA'') upon the applicant providing certain disclosures similar to those required under Bankruptcy Code section 327. In response to dire fiscal issues facing Puerto Rico at the time, Congress passed Pub. L. 114-187, the ``Puerto Rico Oversight, Management, and Economic Stability Act'' or ``PROMESA'' in 2016, legislation I strongly supported and cosponsored. The Act established the Financial Oversight and Management Board (Board), a fiscal control board comprised of seven members that would have control over Puerto Rico's budget, laws, financial plans, and regulations. It empowered the board to propose a budget for Puerto Rico and restructure its obligations owed to bondholders, estimated to be $6.5 billion, and other creditors. Although largely patterned on chapter 11 of the Bankruptcy Code, PROMESA did not incorporate all facets of chapter 11 and other relevant provisions of the Code. For example, although the Board is authorized to retain and compensate professional persons in connection with its efforts to reorganize Puerto Rico, PROMESA does not include certain restrictions that the Bankruptcy Code requires for such purposes.…”