Requires that, with respect to creditors who are the municipality's employees or retirees, "good faith" has the same meaning as it does in the National Labor Relations Act.

Requires the municipality also to establish by clear and convincing evidence that it satisfies all eligibility criteria.

Repeals the limitation placed upon on court authority to issue a stay pending an appeal of an order for relief.

Amends the Judicial Code to confer upon the appropriate court of appeals jurisdiction of any appeal of a bankruptcy court determination that an entity is eligible to be a municipal debtor. Requires the appellate court to consider and determine such appeal on an expedited basis as a direct appeal, which shall be reviewed and heard de novo on the merits.

Requires the court to confirm the bankruptcy plan of a municipality which modifies a collective bargaining agreement or a retiree benefit in any manner otherwise prohibited by nonbankruptcy law if the plan is agreed to by the authorized representative of either the employees covered by collective bargaining or the individuals receiving the retiree benefits.

Designates the labor organization signatory to a collective bargaining agreement as the authorized representative of individuals receiving retiree benefits covered by that agreement.

Sets forth procedures for court appointment of an authorized representative if a labor organization elects not to serve as one, or if the retired employees are not covered by a collective bargaining agreement.