SEC. 2. DETERMINATION OF MUNICIPALITY ELIGIBILITY 
TO BE A DEBTOR UNDER CHAPTER 9 OF 
TITLE 11 OF THE UNITED STATES CODE. 
(a) REQUIREMENTS.—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 employ-
ees 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 ‘‘im-
practicable’’ 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 APPEAL.—The first sentence of 
section 921(e) of title 11, United States Code, is amended 
by striking ‘‘; nor’’ and all that follows through ‘‘appeal’’. 
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(c) DIRECT IMMEDIATE APPEAL TO COURT OF AP-
PEALS.—Section 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 ju-
risdiction of an appeal of a determination made by a bank-
ruptcy 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 para-
graph.’’. 
SEC. 3. PROTECTING EMPLOYEES AND RETIREES. 
Section 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 col-
lective bargaining agreement, or modifies a retiree 
benefit, including an accrued pension, retiree health, 
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or other retirement benefit otherwise protected by 
State or municipal law, or a retiree benefit as de-
fined 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 indi-
viduals 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 rep-
resentative of those individuals receiving any retiree ben-
efit covered by any collective bargaining agreement shall 
be the labor organization that is signatory to such agree-
ment 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 
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‘‘(B) the court, upon a motion by a party in in-
terest, after notice and hearing, determines that dif-
ferent representation of such individuals is appro-
priate. 
‘‘(3) In a case in which the labor organization re-
ferred to in paragraph (2) elects not to serve as the au-
thorized representative of those individuals receiving any 
retiree benefits covered by any collective bargaining agree-
ment 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 rep-
resentative 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 mod-
ify or not pay the retiree benefits, or if the court otherwise 
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determines that it is appropriate, to serve as the author-
ized 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 pro-
portional basis per capita based on organization member-
ship, individuals chosen from among members of organiza-
tions that represent the retirees with respect to whom such 
order is entered. 
‘‘(f) Members of a committee appointed under sub-
section (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.’’. 
Æ 
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