English/Spanish: Rubio, Menendez, Velázquez Applaud Senate Passage of Puerto Rico Recovery Accuracy in Disclosures Act

U.S. Senators Marco Rubio (R-FL) and Bob Menendez (D-NJ), along with Congresswoman Nydia Velázquez (D-NY), applauded the Senate's unanimous passage of the bicameral and bipartisan Puerto Rico Recovery Accuracy in Disclosures Act (PRRADA) (H.R. 1192). As the bill reflects changes made in the Senate Committee on Energy and Natural Resources, the bill heads back to the House of Representatives for consideration.

This bipartisan and bicameral piece of legislation would impose robust disclosure requirements on all of the Puerto Rico Financial Oversight and Management Board's advisers and consultants, closing a loophole in existing law that disadvantages the people of Puerto Rico in the island's debt restructuring process. PRRADA will require attorneys, accountants and other professionals involved in the debt restructuring to disclose potential conflicts of interests, ensuring that the people of Puerto Rico are afforded the same transparency and disclosure practices required by law in U.S. mainland bankruptcy cases.

"It is past time to close this loophole and ensure our fellow citizens living in Puerto Rico are benefitting from transparency requirements that are afforded to Americans living on the mainland," Rubio said. "Today, the Senate has taken a step in the right direction to require advisors and consultants to Puerto Rico's Fiscal Oversight Board to disclose conflicts of interest. I look forward to seeing the legislation receive swift passage in the House."

"When Congress passed the Puerto Rico Oversight, Management, and Economic Stability Act in 2016, one of the many reasons I was vehemently opposed is because it included an unfair loophole that allowed bankruptcy advisers and consultants to get rich off of worsening economic inequalities in Puerto Rico without having to disclose their conflicts of interests with creditors to whom Puerto Rico owed money," Menendez said. "Today we took a monumental leap forward in righting this wrong. By unanimously passing this legislation in the Senate, the people of Puerto Rico are now one step closer to finally having the transparency they deserve in the debt restructuring process."

"By applying a robust disclosure requirement to all PROMESA Title III proceedings and eliminating the double standard facing the people of Puerto Rico, this bill will help to restore confidence that the Board's bankruptcy advisors do not have their "thumb on the scale' to favor certain debts where they have a self-interest," Rep. Velázquez said. "I'm very proud that it has passed the Senate and now the House must quickly follow suit so it can become law once-and-for-all."

Source