Puerto Rico Recovery Accuracy in Disclosures Act of 2021

Floor Speech

BREAK IN TRANSCRIPT

Ms. VELAZQUEZ. Madam Speaker, I rise in strong support of H.R. 1192. I was proud to introduce this bill with bipartisan support in the House.

I would like to take this opportunity to thank Speaker of the House Nancy Pelosi and Chairman Jerry Nadler for bringing this legislation to the floor, and Mr. Bishop, the ranking member of the subcommittee, and Senator Bob Menendez for introducing a companion bill in the Senate.

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, or PROMESA, to set up an orderly bankruptcy process to restructure its debt, stimulate economic development, and put the island on a path to financial recovery. This bill will extend current U.S. law, requiring disclosures of conflicts of interest to Puerto Rico, thereby improving transparency and restoring confidence in the island's future.

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

While we can have different 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 staff, and the bipartisan cosponsors of the bill. I strongly encourage all Members to vote ``yes'' on this critical piece of legislation. I also would like to recognize the gentlewoman from Puerto Rico (Miss Gonzalez-Colon), who is a cosponsor of the bill.

BREAK IN TRANSCRIPT

Source