[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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