113 HR 5133 IH: Protecting Employees and Retirees in Municipal Bankruptcies Act of 2014
U.S. House of Representatives
2014-07-17
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.This Act may be cited as the Protecting Employees and Retirees in Municipal Bankruptcies Act of 2014
.
2.Determination of Municipality Eligibility to be a debtor Under Chapter 9 of title 11 of the United
States Code
(a)Section 109(c) of title 11, United States Code, is amended—
(1)in paragraph (5)—
(A)in subparagraph (B) by inserting (but with respect to creditors who are employees or retirees of such entity, the term good faith
shall have the same meaning as such term has in the National Labor Relations Act)
after creditors
the first place it appears,
(B)in subparagraph (C) by striking impracticable
and inserting impossible
, and
(C)in subparagraph (D) by striking the period at the end and inserting a semicolon, and
(2)by adding at the end the following:
and establishes by clear and convincing evidence that it satisfies the requirements of this
subsection..
(b)Repeal of limitation on authority To issue stay pending appealThe first sentence of section 921(e) of title 11, United States Code, is amended by striking ; nor
and all that follows through appeal
.
(c)Direct immediate appeal to court of appealsSection 158(d) of title 28, United States Code, is amended by adding at the end the following:
(3)The appropriate court of appeals shall have jurisdiction of an appeal of a determination made by a
bankruptcy court under section 109(c) of title 11 that an entity is
eligible to be a debtor under chapter 9 of title 11 and shall consider and
determine such appeal on an expedited basis. Such appeal shall be a direct
appeal to be reviewed and heard de novo on the merits. The doctrine of
equitable mootness shall not apply to appeals under this paragraph..
3.Protecting Employees and RetireesSection 943 of title 11, United States Code, is amended—
(1)in subsection (b)—
(A)in paragraph (6) by striking and
at the end,
(B)by redesignating paragraph (7) as paragraph (8), and
(C)by inserting after paragraph (6) the following:
(7)in a case in which the plan modifies a collective bargaining agreement, or modifies a retiree
benefit, including an accrued pension, retiree health, or other retirement
benefit otherwise protected by State or municipal law, or a retiree
benefit as defined in section 1114(a), in any manner otherwise prohibited
by nonbankruptcy law, the authorized representative of the employees
covered by such agreement, or the authorized representative of individuals
receiving the retiree benefits, as the case may be, agrees to the plan;
and, and
(2)by adding at the end the following:
(c)
(1)For purposes of this section, and except as provided in paragraphs (2) and (3), the authorized
representative of those individuals receiving any retiree benefit covered
by any collective bargaining agreement shall be the labor organization
that is signatory to such agreement unless such organization no longer
represents active employees in the bargaining unit the retirees belonged
to when they were active employees. In such case, the labor organization
that currently represents active employees in that bargaining unit shall
be the authorized representative of such individuals.
(2)Paragraph (1) shall not apply if—
(A)such labor organization elects not to serve as the authorized representative of such individuals;
or
(B)the court, upon a motion by a party in interest, after notice and hearing, determines that
different representation of such individuals is appropriate.
(3)In a case in which the labor organization referred to in paragraph (2) elects not to serve as the
authorized representative of those individuals receiving any retiree
benefits covered by any collective bargaining agreement to which that
labor organization is signatory, or in a case where the court, pursuant to
paragraph (2) finds different representation of such individuals
appropriate, the court, upon a motion by a party in interest, and after
notice and a hearing, shall order the United States trustee to appoint a
committee of retired employees if the debtor seeks to modify or not pay
the retiree benefits or if the court otherwise determines that it is
appropriate, from among such individuals, to serve as the authorized
representative of such individuals under this section. The party
requesting such relief has the burden of proof.
(d)For retired employees not covered by a collective bargaining agreement, the court, upon a motion by
a party in interest, and after notice and a hearing, shall issue an order
requiring the United States trustee to appoint a committee of retired
employees if the debtor seeks to modify or not pay the retiree benefits,
or if the court otherwise determines that it is appropriate, to serve as
the authorized representative under this section of such employees. Such
party has the burden of proof with respect to such motion.
(e)To comply with an order issued under subsection (c)(3) or (d), notwithstanding any other provision
of this chapter, the United States trustee shall appoint, on a
proportional basis per capita based on organization membership,
individuals chosen from among members of organizations that represent the
retirees with respect to whom such order is entered.
(f)Members of a committee appointed under subsection (c)(3) or (d) may not recommend modification of
any right to a retiree benefit unless not less than 2/3 of such members vote in support of such recommendation..