[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5525 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 5525

   To amend title 11 of the United States Code to prevent corporate 
bankruptcy abuse and provide greater protection for employees, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 2, 2002

  Mr. Gekas introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
   To amend title 11 of the United States Code to prevent corporate 
bankruptcy abuse and provide greater protection for employees, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Corporate Bankruptcy Abuse 
Prevention and Employee Protection Act of 2002''.

SEC. 2. EMPLOYEE WAGE AND BENEFIT PRIORITIES.

    Section 507(a) of title 11, United States Code, is amended--
            (1) in paragraph (3) by striking ``90'' and inserting 
        ``180'', and
            (2) in paragraphs (3) and (4) by striking ``$4,000'' and 
        inserting ``$10,000''.

SEC. 3. FRAUDULENT TRANSFERS AND OBLIGATIONS.

    Section 548 of title 11, United States Code, is amended--
            (1) in subsections (a) and (b) by striking ``one year'' and 
        inserting ``2 years'',
            (2) in subsection (a)--
                    (A) by inserting ``(including any transfer to or 
                for the benefit of an insider under an employment 
                contract)'' after ``transfer'' the 1st place it 
                appears, and
                    (B) by inserting ``(including any obligation to or 
                for the benefit of an insider under an employment 
                contract)'' after ``obligation'' the 1st place it 
                appears, and
            (3) in subsection (a)(1)(B)(ii)--
                    (A) in subclause (II) by striking ``or'' at the 
                end,
                    (B) in subclause (III) by striking the period at 
                the end and inserting ``; or'', and
                    (C) by adding at the end the following:
            ``(IV) made such transfer to or for the benefit of an 
        insider, or incurred such obligation to or for the benefit of 
        an insider, under an employment contract and not in the 
        ordinary course of business.''.

SEC. 4. PAYMENT OF INSURANCE BENEFITS TO RETIRED EMPLOYEES.

    Section 1114 of title 11, United States Code, is amended--
            (1) by redesignating subsection (l) as subsection (m), and
            (2) by inserting after subsection (k) the following:
    ``(l) If the debtor, during the 180-day period ending on the date 
of the filing of the petition--
            ``(1) modified retiree benefits; and
            ``(2) was insolvent on the date such benefits were 
        modified;
the court, on motion of a party in interest, and after notice and a 
hearing, shall issue an order reinstating as of the date the 
modification was made, such benefits as in effect immediately before 
such date unless the court finds that the balance of the equities 
clearly favors such modification.''.

SEC. 5. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as provided in subsection (b), this Act 
and the amendments made by this Act shall take effect on the date of 
the enactment of this Act.
    (b) Application of Amendments.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this Act shall apply only with respect to 
        cases commenced under title 11 of the United States Code on or 
        after the date of the enactment of this Act.
            (2) Avoidance period.--The amendment made by section 3(1) 
        shall apply only with respect to cases commenced under title 11 
        of the United States Code more than 1 year after the date of 
        the enactment of this Act.
                                 <all>