I 

115TH CONGRESS 

1ST SESSION H. R. 139 

To amend chapter 9 of title 11 of the United States Code to improve 

protections for employees and retirees in municipal bankruptcies. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 3, 2017 

Mr. CONYERS (for himself, Mr. COHEN, Mr. JOHNSON of Georgia, and Ms. 

JACKSON LEE) introduced the following bill; which was referred to the 

Committee on the Judiciary 

A BILL 

To amend chapter 9 of title 11 of the United States Code 

to improve protections for employees and retirees in municipal bankruptcies. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Protecting Employees 

5 and Retirees in Municipal Bankruptcies Act of 2017’’. 


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1 SEC. 2. DETERMINATION OF MUNICIPALITY ELIGIBILITY 

2 TO BE A DEBTOR UNDER CHAPTER 9 OF 

3 TITLE 11 OF THE UNITED STATES CODE. 

4 (a) REQUIREMENTS.—Section 109(c) of title 11, 

5 United States Code, is amended— 

6 (1) in paragraph (5)— 

7 (A) in subparagraph (B) by inserting 

8 ‘‘(but with respect to creditors who are employ9 ees or retirees of such entity, the term ‘good 

10 faith’ shall have the same meaning as such 

11 term has in the National Labor Relations Act)’’ 

12 after ‘‘creditors’’ the first place it appears, 

13 (B) in subparagraph (C) by striking ‘‘im14 practicable’’ and inserting ‘‘impossible’’, and 

15 (C) in subparagraph (D) by striking the 

16 period at the end and inserting a semicolon, 

17 and 

18 (2) by adding at the end the following: 

19 ‘‘and establishes by clear and convincing evidence that it 

20 satisfies the requirements of this subsection.’’. 

21 (b) REPEAL OF LIMITATION ON AUTHORITY TO

22 ISSUE STAY PENDING APPEAL.—The first sentence of 

23 section 921(e) of title 11, United States Code, is amended 

24 by striking ‘‘; nor’’ and all that follows through ‘‘appeal’’. 


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1 (c) DIRECT IMMEDIATE APPEAL TO COURT OF AP2 PEALS.—Section 158(d) of title 28, United States Code, 

3 is amended by adding at the end the following: 

4 ‘‘(3) The appropriate court of appeals shall have ju5 risdiction of an appeal of a determination made by a bank6 ruptcy court under section 109(c) of title 11 that an entity 

7 is eligible to be a debtor under chapter 9 of title 11 and 

8 shall consider and determine such appeal on an expedited 

9 basis. Such appeal shall be a direct appeal to be reviewed 

10 and heard de novo on the merits. The doctrine of equitable 

11 mootness shall not apply to appeals under this para12 graph.’’. 

13 SEC. 3. PROTECTING EMPLOYEES AND RETIREES. 

14 Section 943 of title 11, United States Code, is 

15 amended— 

16 (1) in subsection (b)— 

17 (A) in paragraph (6) by striking ‘‘and’’ at 

18 the end, 

19 (B) by redesignating paragraph (7) as 

20 paragraph (8), and 

21 (C) by inserting after paragraph (6) the 

22 following: 

23 ‘‘(7) in a case in which the plan modifies a col24 lective bargaining agreement, or modifies a retiree 

25 benefit, including an accrued pension, retiree health, 


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1 or other retirement benefit otherwise protected by 

2 State or municipal law, or a retiree benefit as de3 fined in section 1114(a), in any manner otherwise 

4 prohibited by nonbankruptcy law, the authorized 

5 representative of the employees covered by such 

6 agreement, or the authorized representative of indi7 viduals receiving the retiree benefits, as the case 

8 may be, agrees to the plan; and’’, and 

9 (2) by adding at the end the following: 

10 ‘‘(c)(1) For purposes of this section, and except as 

11 provided in paragraphs (2) and (3), the authorized rep12 resentative of those individuals receiving any retiree ben13 efit covered by any collective bargaining agreement shall 

14 be the labor organization that is signatory to such agree15 ment unless such organization no longer represents active 

16 employees in the bargaining unit the retirees belonged to 

17 when they were active employees. In such case, the labor 

18 organization that currently represents active employees in 

19 that bargaining unit shall be the authorized representative 

20 of such individuals. 

21 ‘‘(2) Paragraph (1) shall not apply if— 

22 ‘‘(A) such labor organization elects not to serve 

23 as the authorized representative of such individuals; 

24 or 


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1 ‘‘(B) the court, upon a motion by a party in in2 terest, after notice and hearing, determines that dif3 ferent representation of such individuals is appro4 priate. 

5 ‘‘(3) In a case in which the labor organization re6 ferred to in paragraph (2) elects not to serve as the au7 thorized representative of those individuals receiving any 

8 retiree benefits covered by any collective bargaining agree9 ment to which that labor organization is signatory, or in 

10 a case where the court, pursuant to paragraph (2) finds 

11 different representation of such individuals appropriate, 

12 the court, upon a motion by a party in interest, and after 

13 notice and a hearing, shall order the United States trustee 

14 to appoint a committee of retired employees if the debtor 

15 seeks to modify or not pay the retiree benefits or if the 

16 court otherwise determines that it is appropriate, from 

17 among such individuals, to serve as the authorized rep18 resentative of such individuals under this section. The 

19 party requesting such relief has the burden of proof. 

20 ‘‘(d) For retired employees not covered by a collective 

21 bargaining agreement, the court, upon a motion by a party 

22 in interest, and after notice and a hearing, shall issue an 

23 order requiring the United States trustee to appoint a 

24 committee of retired employees if the debtor seeks to mod25 ify or not pay the retiree benefits, or if the court otherwise 


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1 determines that it is appropriate, to serve as the author2 ized representative under this section of such employees. 

3 Such party has the burden of proof with respect to such 

4 motion. 

5 ‘‘(e) To comply with an order issued under subsection 

6 (c)(3) or (d), notwithstanding any other provision of this 

7 chapter, the United States trustee shall appoint, on a pro8 portional basis per capita based on organization member9 ship, individuals chosen from among members of organiza10 tions that represent the retirees with respect to whom such 

11 order is entered. 

12 ‘‘(f) Members of a committee appointed under sub13 section (c)(3) or (d) may not recommend modification of 

any right to a retiree benefit unless not less than 2 14 ⁄3 of 

15 such members vote in support of such recommendation.’’. 

Æ 


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