[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8077 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 8077
To amend title 11 of the United States Code to address misuse of
bankruptcy proceedings in cases of child sex abuse, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 18, 2024
Ms. Ross (for herself and Ms. Tenney) 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 address misuse of
bankruptcy proceedings in cases of child sex abuse, 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 ``Closing Bankruptcy Loopholes for
Child Predators Act of 2024''.
SEC. 2. AMENDMENTS.
(a) Amendments.--Title 11, United States Code, is amended--
(1) in section 101--
(A) by redesignating paragraphs (51B), (51C), and
(51D) as paragraphs (51C), (51D), and (51E),
respectively, and
(B) by inserting after paragraph (51A) the
following:
``(51B) The term `sexual abuse of a child' means any act
that--
``(A) constitutes a violation of--
``(i) section 1589, 1590, 1591, 2241(c),
2242, 2243, 2251, 2251A, 2252, 2252A, 2260,
2421, 2422, or 2423, 2258, or 2258A, of title
18;
``(ii) section 20341 of title 34; or
``(iii) a non-Federal law that is similar
to a law described in clause (i);
``(B) by reason of the conduct prohibited, a person
who, while a minor, was aggrieved.'';
(2) by amending section 1109(c) to read as follows:
``(c) A party in interest, including the debtor, the trustee, a
creditors' committee, an equity security holders' committee, a
creditor, an equity security holder, or any indenture trustee, may
raise and may appear and be heard on any issue in a case under this
chapter. In any case in which a claim is filed against the debtor
arising out of the alleged sexual abuse of a child, the court shall
hold a conference within 60 days of the deadline by which proofs of
claim must be filed to consider victim impact statements.
``(d) The sole purpose of victim impact statements shall be to
increase engagement and understanding between the bankruptcy court and
victims or survivors of child sexual assault. To encourage candor, and
thus enhance the utility of victim impact statements, the information
provided through victim impact statements is not, and shall not be used
as, evidence by any person in the case.'',
(3) in section 1101--
(A) by in paragraph (2) by striking the period at
the end and inserting ``; and'', and
(B) by adding at end the following:
``(3) ``victim impact statement'' means a voluntary written, oral,
video, or audio statement, submitted to, or presented to the court in
the name of the victim or under a pseudonym, describing the emotional,
physical, familial, or financial impact suffered as a result of the
sexual abuse of the victim who is a creditor of the debtor in a chapter
11 proceeding.'',
(4) in section 541 by adding at end the following:
``(g) In all cases regarding debts or other financial liability
arising from allegations of sexual abuse of a child, involving debtors
that are organizations described in section 501(c)(3) of the Internal
Revenue Code of 1986 and exempt from tax under section 501(a) of such
Code, the Court shall engage the services of an independent forensic
accountant to review the assets and interests of such debtor, and any
nondebtor sought to be released from liability in a proposed
reorganization plan, and require preparation of a report to assist the
Court with ensuring that such assets and interests are properly
included or excluded from the estate.'',
(5) in section 107--
(A) in subsection (b) by adding at the end the
following:
``This subsection shall not apply to cases regarding debts or other
financial liability arising from potential liability stemming from
allegations of sexual abuse of a child except to the extent necessary
to protect the identity and personal information of the person(s)
alleging that they were abused unless the alleged offender is found
innocent of abuse in a court of law.'',
(B) by amending subsection (d) to read as follows:
``(d) Except no court order shall seal any evidence of alleged
crimes relating to the sexual abuse of a child other than to protect
the identity and personal information of the person(s) alleging that
they were abused unless the alleged offender is found innocent of abuse
in a court of law.'',
(6) in section 362(b)(2)(A)--
(A) in clause (iv) by striking ``or'' at the end,
(B) in clause (v) by adding ``or'' at the end, and
(C) by adding at end the following:
``(vi) concerning the sexual abuse of a
child or related claims;'',
(7) in section 524(g)(2)(B)(i) by inserting ``or relating
to the sexual abuse of a child'' before the semicolon at the
end,
(8) in section 1111 by adding at the end the following:
``(c) Claims relating to sexual abuse of a child are deemed timely
filed regardless of and notwithstanding the state statute of limitation
otherwise applicable to the claim.'', and
(9) in section 1181 by adding at the end the following:
``(d) Prohibition on Claims Related to Child Sexual Abuse.--
Notwithstanding any provision of law to the contrary, no subchapter 5
filings shall be permitted for claims arising from or related to child
sexual abuse.''.
(b) Clerical Amendment.--The table of sections for chapter 1 of
title 11, United States Code, is amended by adding at the end the
following:
``113. Suspension of stay without consent.''.
SEC. 3. AMENDMENTS TO THE FEDERAL RULES OF BANKRUPTCY PROCEDURE.
The Federal Rules of Bankruptcy Procedure (11 U.S.C. app.) are
amended--
(1) in rule 2004--
(A) by amending subsection (b) to read as follows:
``(b) Scope of Examination
``The examination of an entity under this rule or of the debtor
under Sec. 343 of the Code may relate only to the acts, conduct, or
property or to the liabilities and financial condition of the debtor,
or to any matter which may affect the administration of the debtor's
estate, or to the debtor's right to a discharge. In a family farmer's
debt adjustment case under chapter 12, an individual's debt adjustment
case under chapter 13, or a reorganization case under chapter 11 of the
Code, other than for the reorganization of a railroad, the examination
may also relate to the operation of any business and the desirability
of its continuance, the source of any money or property acquired or to
be acquired by the debtor for purposes of consummating a plan and the
consideration given or offered therefor, and any other matter relevant
to the case or to the formulation of a plan. In a reorganization case
under chapter 11 of the Code related to the alleged sexual abuse of a
child, the examination shall also relate to the abuse allegations
against the debtor and any affiliated entity, remedial policies and
responses to those allegations, information on the debtor or an
affiliated entity's finances and financial projections, and any other
matter relevant to the case or to the formulation of a plan.'', and
(B) by amending subsection (c) to read as follows:
``(c) Compelling Attendance and Production of Documents or
Electronically Stored Information
``The attendance of an entity for examination and to produce
documents or electronically stored information, whether the examination
is to be conducted within or without the district in which the case is
pending, may be compelled as provided in Rule 9016 for the attendance
of a witness at a hearing or trial. As an officer of the court, an
attorney may issue and sign a subpoena on behalf of the court where the
case is pending if the attorney is admitted to practice in that court.
In a reorganization case under chapter 11 of the Code related to the
alleged sexual abuse of a child, debtor attendance for examination and
the production of documents or electronically stored information is
required.'', and
(2) in rule 9018 by adding at the end the following:
``In no respect shall any court order seal any evidence of alleged
crimes relating to the sexual abuse of a child other than to protect
the identity and personal information of the person(s) alleging that
they were abused unless the alleged offender is found innocent of abuse
in a court of law.''.
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