Hearing of the House Judiciary Committee - Opening Statement of Rep. Nadler, Markup on H.R. 683, the Puerto Rico Recovery Accuracy in Disclosures Act

Hearing

Today, House Judiciary Committee Chairman Jerrold Nadler (D-NY) delivered the following opening remarks, as prepared, during the markup of H.R. 863, the Puerto Rico Recovery Accuracy in Disclosures Act or PRRADA:

"H.R. 683, the Puerto Rico Recovery Accuracy in Disclosures Act or PRRADA, is bipartisan legislation that that would promote greater transparency and integrity with respect to the ongoing financial reorganization of Puerto Rico.

"In response to dire fiscal issues facing Puerto Rico at the time, Congress passed the 'Puerto Rico Oversight, Management, and Economic Stability Act' or 'PROMESA' in 2016. That legislation established the Financial Oversight and Management Board with control over Puerto Rico's budget, laws, financial plans, and regulations and the authority to retain professionals to assist the Board in executing its responsibilities.

"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, including, for example, the Code's mandatory disclosure requirements regarding actual or potential conflicts of interest that professional persons seeking to be retained in a bankruptcy case must make to the court prior to their retention.

"This bill would close that loophole and, to quote our colleague from New York, Ms. Velázquez, who authored the bill, 'improve transparency and restore confidence and integrity' in Puerto Rico's restructuring process.

"I thank Ms. Velázquez for her leadership in championing this bill and for her relentless dedication to ensuring that the people of Puerto Rico receive the fair, efficient, and transparent restructuring process they deserve. I urge all Members to support this legislation."

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