Velázquez Floor Remarks on Puerto Rico Recovery Accuracy in Disclosures Act of 2021

Washington, D.C.— Rep. Nydia M. Velázquez (D-NY), who is recovering at home from COVID-19, submitted the following remarks for the record during the House debate of her legislation, the Puerto Rico Recovery Accuracy in Disclosures Act of 2021:

"Madam Speaker, I rise in strong support of the Senate Amendment to H.R. 1192, the Puerto Rico Recovery Accuracy in Disclosures Act of 2021. I was proud to introduce this bill with bipartisan support in the House. I would like to thank House Speaker Nancy Pelosi, Majority Leader Steny Hoyer, and Chairman Jerry Nadler for bringing this legislation to the floor and to Senator Bob Menendez for introducing a companion bill in the Senate and for his tireless efforts to make sure this bill would get approved in the Senate.

"HR 1192 already unanimously passed this House back on February 24, 2021 and I expect to do so the same today.

"The Puerto Rico Recovery Accuracy in Disclosures Act of 2021 or "PRRADA" eliminates a double standard currently facing Puerto Rico. Under U.S. Code and Federal Bankruptcy procedure, any conflicts of interest—or even the perception of such conflict—between those working on the bankruptcy and the debtor are required to be disclosed.

"However, a loophole in the current law prevents this requirement from being extended to the people of Puerto Rico.

"In 2016, Congress passed the Puerto Rico Oversight, Management, and Economic Stability Act, otherwise known as PROMESA. When PROMESA was originally passed, it incorporated Chapter 11's bankruptcy requirement that professionals file fee applications with the court. But PROMESA did not include Chapter 11's disclosure requirements that go hand-in-hand with those fee applications. PRRADA remedies this and makes sure that professionals paid by the taxpayers of Puerto Rico are fully transparent about what interests they are serving.

"Puerto Ricans should be confident that the Board's bankruptcy advisors do not have their ‘thumb on the scale' to favor certain debts where they have a self-interest. This bipartisan bill ensures integrity and transparency of the PROMESA process.

"While we can have differing opinions on how effectively the Oversight Board is carrying out its mission, one thing should be clear—the island's residents should be entitled to the same rights and protections as any debtor on the mainland.

"Once more, I would like to thank Chairman Nadler, the Committee Staff and the bipartisan cosponsors of this bill. I strongly encourage all members to vote "Yes" on this critical piece of legislation and yield the balance of my time."