Sending Office: Honorable Nydia M. Velazquez
Sent By:
Tali.Weg@mail.house.gov

        Request for Cosponsor(s)

Current Cosponsors (14): Bass,
Biggs, Bishop, Espaillat, Gonzalez-Colon, Grijalva, Lieu, Ocasio-Cortez, Raskin, Serrano, Soto, Swalwell, Tlaib,
Upton

 

Dear Colleague:

Puerto Rico has suffered immensely in recent years both from natural disasters like Hurricane Maria and man-made disasters like the crippling debt load that has bankrupted the island.

Congress passed the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) in 2016 to set up an orderly bankruptcy
process to restructure the island’s debts, pay off creditors, approve infrastructure projects, stimulate economic development, and put the Island on the path to financial recovery.

However, Congress failed to include one essential check in PROMESA: the requirement that the Oversight Board’s advisers and consultants
disclose their own conflicts of interests with the variety of creditors to whom Puerto Rico owes $123 billion.

It should be noted this transparency requirement applies to every corporate bankruptcy on the mainland.  H.R.
683
, the Puerto Rico Recovery Accuracy in Disclosures Act of 2019, also known as PRRADA, applies a robust disclosure requirement to all PROMESA Title III proceedings to eliminate the double standard and close the current loophole in the law.  Puerto
Ricans should be confident that the Board’s bankruptcy advisors don’t have their “thumb on the scale†to favor certain debts where they have a self-interest and ensure integrity in the PROMESA process.

The need for PRRADA was recently articulated when a board-appointed law firm investigated potential conflicts in Puerto Rico’s bankruptcy. 
One of the main recommendations in the “Luskin Report†was that vendors should disclose affiliate relationships and found that trading in Puerto Rico public debt is particularly problematic, as it gives rise to the appearance of conflict (p. 85).  This is
exactly what the PRRADA bill requires vendors to do and why the bill should become law.

PRRADA will guarantee to the people of Puerto Rico the same transparency and disclosure practices required by law in U.S. mainland
bankruptcies.  In the interest of fairness for Puerto Rico’s people and for impartiality in restructuring – and thereby securing – Puerto Rico’s future, we urge our colleagues to cosponsor H.R. 683.

For more information, please contact Justin Pelletier justin.pelletier@mail.house.gov (with Congresswoman Velazquez) or Jason Rogers Jason.Rogers@mail.house.gov (with
Rep. Biggs).

 

Sincerely,

 

Nydia Velazquez                                                        Andy Biggs

Member of Congress                                                  Member of Congress

Related Legislative Issues

Selected legislative information: Finance, Judiciary, Natural Resources

Related Bill Information

Bill Type: H.R.
Bill Type: 683
Special Note:

icon eDC logo e-Dear Colleague version 2.0
 
e-Dear Colleagues are intended for internal House use only.