[Congressional Record Volume 165, Number 124 (Tuesday, July 23, 2019)]
[House]
[Pages H7217-H7220]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               SMALL BUSINESS REORGANIZATION ACT OF 2019

  Mr. CICILLINE. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 3311) to amend chapter 11 of title 11, United States Code, 
to address reorganization of small businesses, and for other purposes, 
as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 3311

       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 ``Small Business 
     Reorganization Act of 2019''.

     SEC. 2. REORGANIZATION OF SMALL BUSINESS DEBTORS.

       (a) In General.--Chapter 11 of title 11, United States 
     Code, is amended by adding at the end the following:

          ``SUBCHAPTER V--SMALL BUSINESS DEBTOR REORGANIZATION

     ``Sec. 1181. Inapplicability of other sections

       ``(a) In General.--Sections 105(d), 1101(1), 1104, 1105, 
     1106, 1107, 1108, 1115, 1116, 1121, 1123(a)(8), 1123(c), 
     1127, 1129(a)(15), 1129(b), 1129(c), 1129(e), and 1141(d)(5) 
     of this title do not apply in a case under this subchapter.
       ``(b) Court Authority.--Unless the court for cause orders 
     otherwise, paragraphs (1), (2), and (4) of section 1102(a) 
     and sections 1102(b), 1103, and 1125 of this title do not 
     apply in a case under this subchapter.
       ``(c) Special Rule for Discharge.--If a plan is confirmed 
     under section 1191(b) of this title, section 1141(d) of this 
     title shall not apply, except as provided in section 1192 of 
     this title.

     ``Sec. 1182. Definitions

       ``In this subchapter:
       ``(1) Debtor.--The term `debtor' means a small business 
     debtor.
       ``(2) Debtor in possession.--The term `debtor in 
     possession' means the debtor, unless removed as debtor in 
     possession under section 1185(a) of this title.

     ``Sec. 1183. Trustee

       ``(a) In General.--If the United States trustee has 
     appointed an individual under section 586(b) of title 28 to 
     serve as standing trustee in cases under this subchapter, and 
     if such individual qualifies as a trustee under section 322 
     of this title, then that individual shall serve as trustee in 
     any case under this subchapter. Otherwise, the United States 
     trustee shall appoint 1 disinterested person to serve as 
     trustee in the case or the United States trustee may serve as 
     trustee in the case, as necessary.
       ``(b) Duties.--The trustee shall--
       ``(1) perform the duties specified in paragraphs (2), (5), 
     (6), (7), and (9) of section 704(a) of this title;
       ``(2) perform the duties specified in paragraphs (3), (4), 
     and (7) of section 1106(a) of this title, if the court, for 
     cause and on request of a party in interest, the trustee, or 
     the United States trustee, so orders;
       ``(3) appear and be heard at the status conference under 
     section 1188 of this title and any hearing that concerns--
       ``(A) the value of property subject to a lien;
       ``(B) confirmation of a plan filed under this subchapter;
       ``(C) modification of the plan after confirmation; or
       ``(D) the sale of property of the estate;
       ``(4) ensure that the debtor commences making timely 
     payments required by a plan confirmed under this subchapter;
       ``(5) if the debtor ceases to be a debtor in possession, 
     perform the duties specified in section 704(a)(8) and 
     paragraphs (1), (2), and (6) of section 1106(a) of this 
     title, including operating the business of the debtor;
       ``(6) if there is a claim for a domestic support obligation 
     with respect to the debtor, perform the duties specified in 
     section 704(c) of this title; and
       ``(7) facilitate the development of a consensual plan of 
     reorganization.
       ``(c) Termination of Trustee Service.--
       ``(1) In general.--If the plan of the debtor is confirmed 
     under section 1191(a) of this title, the service of the 
     trustee in the case shall terminate when the plan has been 
     substantially consummated, except that the United States 
     trustee may reappoint a trustee as needed for performance of 
     duties under subsection (b)(3)(C) of this section and section 
     1185(a) of this title.
       ``(2) Service of notice of substantial consummation.--Not 
     later than 14 days after the plan of the debtor is 
     substantially consummated, the debtor shall file with the 
     court and serve on the trustee, the United States trustee, 
     and all parties in interest notice of such substantial 
     consummation.

     ``Sec. 1184. Rights and powers of a debtor in possession

       ``Subject to such limitations or conditions as the court 
     may prescribe, a debtor in possession shall have all the 
     rights, other than the right to compensation under section 
     330 of this title, and powers, and shall perform all 
     functions and duties, except the duties specified in 
     paragraphs (2), (3), and (4) of section 1106(a) of this 
     title, of a trustee serving in a case under this chapter, 
     including operating the business of the debtor.

     ``Sec. 1185. Removal of debtor in possession

       ``(a) In General.--On request of a party in interest, and 
     after notice and a hearing, the court shall order that the 
     debtor shall not be

[[Page H7218]]

     a debtor in possession for cause, including fraud, 
     dishonesty, incompetence, or gross mismanagement of the 
     affairs of the debtor, either before or after the date of 
     commencement of the case, or for failure to perform the 
     obligations of the debtor under a plan confirmed under this 
     subchapter.
       ``(b) Reinstatement.--On request of a party in interest, 
     and after notice and a hearing, the court may reinstate the 
     debtor in possession.

     ``Sec. 1186. Property of the estate

       ``(a) Inclusions.--If a plan is confirmed under section 
     1191(b) of this title, property of the estate includes, in 
     addition to the property specified in section 541 of this 
     title--
       ``(1) all property of the kind specified in that section 
     that the debtor acquires after the date of commencement of 
     the case but before the case is closed, dismissed, or 
     converted to a case under chapter 7, 12, or 13 of this title, 
     whichever occurs first; and
       ``(2) earnings from services performed by the debtor after 
     the date of commencement of the case but before the case is 
     closed, dismissed, or converted to a case under chapter 7, 
     12, or 13 of this title, whichever occurs first.
       ``(b) Debtor Remaining in Possession.--Except as provided 
     in section 1185 of this title, a plan confirmed under this 
     subchapter, or an order confirming a plan under this 
     subchapter, the debtor shall remain in possession of all 
     property of the estate.

     ``Sec. 1187. Duties and reporting requirements of debtors

       ``(a) Filing Requirements.--Upon electing to be a debtor 
     under this subchapter, the debtor shall file the documents 
     required by subparagraphs (A) and (B) of section 1116(1) of 
     this title.
       ``(b) Other Applicable Provisions.--A debtor, in addition 
     to the duties provided in this title and as otherwise 
     required by law, shall comply with the requirements of 
     section 308 and paragraphs (2), (3), (4), (5), (6), and (7) 
     of section 1116 of this title.
       ``(c) Separate Disclosure Statement Exemption.--If the 
     court orders under section 1181(b) of this title that section 
     1125 of this title applies, section 1125(f) of this title 
     shall apply.

     ``Sec. 1188. Status conference

       ``(a) In General.--Except as provided in subsection (b), 
     not later than 60 days after the entry of the order for 
     relief under this chapter, the court shall hold a status 
     conference to further the expeditious and economical 
     resolution of a case under this subchapter.
       ``(b) Exception.--The court may extend the period of time 
     for holding a status conference under subsection (a) if the 
     need for an extension is attributable to circumstances for 
     which the debtor should not justly be held accountable.
       ``(c) Report.--Not later than 14 days before the date of 
     the status conference under subsection (a), the debtor shall 
     file with the court and serve on the trustee and all parties 
     in interest a report that details the efforts the debtor has 
     undertaken and will undertake to attain a consensual plan of 
     reorganization.

     ``Sec. 1189. Filing of the plan

       ``(a) Who May File a Plan.--Only the debtor may file a plan 
     under this subchapter.
       ``(b) Deadline.--The debtor shall file a plan not later 
     than 90 days after the order for relief under this chapter, 
     except that the court may extend the period if the need for 
     the extension is attributable to circumstances for which the 
     debtor should not justly be held accountable.

     ``Sec. 1190. Contents of plan

       ``A plan filed under this subchapter--
       ``(1) shall include--
       ``(A) a brief history of the business operations of the 
     debtor;
       ``(B) a liquidation analysis; and
       ``(C) projections with respect to the ability of the debtor 
     to make payments under the proposed plan of reorganization;
       ``(2) shall provide for the submission of all or such 
     portion of the future earnings or other future income of the 
     debtor to the supervision and control of the trustee as is 
     necessary for the execution of the plan; and
       ``(3) notwithstanding section 1123(b)(5) of this title, may 
     modify the rights of the holder of a claim secured only by a 
     security interest in real property that is the principal 
     residence of the debtor if the new value received in 
     connection with the granting of the security interest was--
       ``(A) not used primarily to acquire the real property; and
       ``(B) used primarily in connection with the small business 
     of the debtor.

     ``Sec. 1191. Confirmation of plan

       ``(a) Terms.--The court shall confirm a plan under this 
     subchapter only if all of the requirements of section 
     1129(a), other than paragraph (15) of that section, of this 
     title are met.
       ``(b) Exception.--Notwithstanding section 510(a) of this 
     title, if all of the applicable requirements of section 
     1129(a) of this title, other than paragraphs (8), (10), and 
     (15) of that section, are met with respect to a plan, the 
     court, on request of the debtor, shall confirm the plan 
     notwithstanding the requirements of such paragraphs if the 
     plan does not discriminate unfairly, and is fair and 
     equitable, with respect to each class of claims or interests 
     that is impaired under, and has not accepted, the plan.
       ``(c) Rule of Construction.--For purposes of this section, 
     the condition that a plan be fair and equitable with respect 
     to each class of claims or interests includes the following 
     requirements:
       ``(1) With respect to a class of secured claims, the plan 
     meets the requirements of section 1129(b)(2)(A) of this 
     title.
       ``(2) As of the effective date of the plan--
       ``(A) the plan provides that all of the projected 
     disposable income of the debtor to be received in the 3-year 
     period, or such longer period not to exceed 5 years as the 
     court may fix, beginning on the date that the first payment 
     is due under the plan will be applied to make payments under 
     the plan; or
       ``(B) the value of the property to be distributed under the 
     plan in the 3-year period, or such longer period not to 
     exceed 5 years as the court may fix, beginning on the date on 
     which the first distribution is due under the plan is not 
     less than the projected disposable income of the debtor.
       ``(3)(A)(i) The debtor will be able to make all payments 
     under the plan; or
       ``(ii) there is a reasonable likelihood that the debtor 
     will be able to make all payments under the plan; and
       ``(B) the plan provides appropriate remedies, which may 
     include the liquidation of nonexempt assets, to protect the 
     holders of claims or interests in the event that the payments 
     are not made.
       ``(d) Disposable Income.--For purposes of this section, the 
     term `disposable income' means the income that is received by 
     the debtor and that is not reasonably necessary to be 
     expended--
       ``(1) for--
       ``(A) the maintenance or support of the debtor or a 
     dependent of the debtor; or
       ``(B) a domestic support obligation that first becomes 
     payable after the date of the filing of the petition; or
       ``(2) for the payment of expenditures necessary for the 
     continuation, preservation, or operation of the business of 
     the debtor.
       ``(e) Special Rule.--Notwithstanding section 1129(a)(9)(A) 
     of this title, a plan that provides for the payment through 
     the plan of a claim of a kind specified in paragraph (2) or 
     (3) of section 507(a) of this title may be confirmed under 
     subsection (b) of this section.

     ``Sec. 1192. Discharge

       ``If the plan of the debtor is confirmed under section 
     1191(b) of this title, as soon as practicable after 
     completion by the debtor of all payments due within the first 
     3 years of the plan, or such longer period not to exceed 5 
     years as the court may fix, unless the court approves a 
     written waiver of discharge executed by the debtor after the 
     order for relief under this chapter, the court shall grant 
     the debtor a discharge of all debts provided in section 
     1141(d)(1)(A) of this title, and all other debts allowed 
     under section 503 of this title and provided for in the plan, 
     except any debt--
       ``(1) on which the last payment is due after the first 3 
     years of the plan, or such other time not to exceed 5 years 
     fixed by the court; or
       ``(2) of the kind specified in section 523(a) of this 
     title.

     ``Sec. 1193. Modification of plan

       ``(a) Modification Before Confirmation.--The debtor may 
     modify a plan at any time before confirmation, but may not 
     modify the plan so that the plan as modified fails to meet 
     the requirements of sections 1122 and 1123 of this title, 
     with the exception of subsection (a)(8) of such section 1123. 
     After the modification is filed with the court, the plan as 
     modified becomes the plan.
       ``(b) Modification After Confirmation.--If a plan has been 
     confirmed under section 1191(a) of this title, the debtor may 
     modify the plan at any time after confirmation of the plan 
     and before substantial consummation of the plan, but may not 
     modify the plan so that the plan as modified fails to meet 
     the requirements of sections 1122 and 1123 of this title, 
     with the exception of subsection (a)(8) of such section 1123. 
     The plan, as modified under this subsection, becomes the plan 
     only if circumstances warrant the modification and the court, 
     after notice and a hearing, confirms the plan as modified 
     under section 1191(a) of this title.
       ``(c) Certain Other Modifications.--If a plan has been 
     confirmed under section 1191(b) of this title, the debtor may 
     modify the plan at any time within 3 years, or such longer 
     time not to exceed 5 years, as fixed by the court, but may 
     not modify the plan so that the plan as modified fails to 
     meet the requirements of section 1191(b) of this title. The 
     plan as modified under this subsection becomes the plan only 
     if circumstances warrant such modification and the court, 
     after notice and a hearing, confirms such plan, as modified, 
     under section 1191(b) of this title.
       ``(d) Holders of a Claim or Interest.--If a plan has been 
     confirmed under section 1191(a) of this title, any holder of 
     a claim or interest that has accepted or rejected the plan is 
     deemed to have accepted or rejected, as the case may be, the 
     plan as modified, unless, within the time fixed by the court, 
     such holder changes the previous acceptance or rejection of 
     the holder.

     ``Sec. 1194. Payments

       ``(a) Retention and Distribution by Trustee.--Payments and 
     funds received by the trustee shall be retained by the 
     trustee until confirmation or denial of confirmation of a 
     plan. If a plan is confirmed, the trustee shall distribute 
     any such payment in accordance with the plan. If a plan is 
     not confirmed, the trustee shall return any such payments to 
     the debtor after deducting--
       ``(1) any unpaid claim allowed under section 503(b) of this 
     title;

[[Page H7219]]

       ``(2) any payment made for the purpose of providing 
     adequate protection of an interest in property due to the 
     holder of a secured claim; and
       ``(3) any fee owing to the trustee.
       ``(b) Other Plans.--If a plan is confirmed under section 
     1191(b) of this title, except as otherwise provided in the 
     plan or in the order confirming the plan, the trustee shall 
     make payments to creditors under the plan.
       ``(c) Payments Prior to Confirmation.--Prior to 
     confirmation of a plan, the court, after notice and a 
     hearing, may authorize the trustee to make payments to the 
     holder of a secured claim for the purpose of providing 
     adequate protection of an interest in property.

     ``Sec. 1195. Transactions with professionals

       ``Notwithstanding section 327(a) of this title, a person is 
     not disqualified for employment under section 327 of this 
     title, by a debtor solely because that person holds a claim 
     of less than $10,000 that arose prior to commencement of the 
     case.''.
       (b) Clerical Amendment.--The table of subchapters at the 
     beginning of chapter 11 of title 11, United States Code, is 
     amended by adding at the end the following:

          ``subchapter v--small business debtor reorganization

``1181. Inapplicability of other sections.
``1182. Definitions.
``1183. Trustee.
``1184. Rights and powers of a debtor in possession.
``1185. Removal of debtor in possession.
``1186. Property of the estate.
``1187. Duties and reporting requirements of debtors.
``1188. Status conference.
``1189. Filing of the plan.
``1190. Contents of plan.
``1191. Confirmation of plan.
``1192. Discharge.
``1193. Modification of plan.
``1194. Payments.
``1195. Transactions with professionals.''.

     SEC. 3. PREFERENCES; VENUE OF CERTAIN PROCEEDINGS.

       (a) Preferences.--Section 547(b) of title 11, United States 
     Code, is amended by inserting ``, based on reasonable due 
     diligence in the circumstances of the case and taking into 
     account a party's known or reasonably knowable affirmative 
     defenses under subsection (c),'' after ``may''.
       (b) Venue of Certain Proceedings.--Section 1409(b) of title 
     28, United States Code, is amended by striking ``$10,000'' 
     and inserting ``$25,000''.

     SEC. 4. CONFORMING AMENDMENTS.

       (a) Title 11.--Title 11, United States Code, is amended--
       (1) in section 101--
       (A) in paragraph (51C), by inserting ``and has not elected 
     that subchapter V of chapter 11 of this title shall apply'' 
     after ``is a small business debtor''; and
       (B) in paragraph (51D)--
       (i) in subparagraph (A)--

       (I) by striking ``or operating real property or activities 
     incidental thereto'' and inserting ``single asset real 
     estate''; and
       (II) by striking ``for a case in which'' and all that 
     follows and inserting ``not less than 50 percent of which 
     arose from the commercial or business activities of the 
     debtor; and''; and

       (ii) in subparagraph (B)--

       (I) by striking the period at the end and inserting a 
     semicolon;
       (II) by striking ``does not include any member'' and 
     inserting the following: ``does not include--

       ``(i) any member''; and

       (III) by adding at the end the following:

       ``(ii) any debtor that is a corporation subject to the 
     reporting requirements under section 13 or 15(d) of the 
     Securities Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)); or
       ``(iii) any corporation that--

       ``(I) is subject to the reporting requirements under 
     section 13 or 15(d) of the Securities Exchange Act of 1934 
     (15 U.S.C. 78m, 78o(d)); and
       ``(II) is an affiliate of a debtor.'';

       (2) in section 103--
       (A) by redesignating subsections (i) through (k) as 
     subsections (j) through (l), respectively; and
       (B) by inserting after subsection (h) the following:
       ``(i) Subchapter V of chapter 11 of this title applies only 
     in a case under chapter 11 in which a small business debtor 
     elects that subchapter V of chapter 11 shall apply.'';
       (3) in section 322(a), by inserting ``1183,'' after 
     ``1163,'';
       (4) in section 326--
       (A) in subsection (a), by inserting ``, other than a case 
     under subchapter V of chapter 11'' after ``7 or 11''; and
       (B) in subsection (b), by inserting ``subchapter V of 
     chapter 11 or'' after ``In a case under'';
       (5) in section 347--
       (A) in subsection (a)--
       (i) by inserting ``1194,'' after ``726,''; and
       (ii) by inserting ``subchapter V of chapter 11,'' after 
     ``chapter 7,''; and
       (B) in subsection (b), by inserting ``1194,'' after 
     ``1173,'';
       (6) in section 363(c)(1), by inserting ``1183, 1184,'' 
     after ``1108,'';
       (7) in section 364(a), by inserting ``1183, 1184,'' after 
     ``1108,'';
       (8) in section 523(a), in the matter preceding paragraph 
     (1), by inserting ``1192'' after ``1141,'';
       (9) in section 524--
       (A) in subsection (a)--
       (i) in paragraph (1), by inserting ``1192,'' after 
     ``1141,''; and
       (ii) in paragraph (3), by inserting ``1192,'' after 
     ``523,'';
       (B) in subsection (c)(1), by inserting ``1192,'' after 
     ``1141,''; and
       (C) in subsection (d), by inserting ``1192,'' after 
     ``1141,'';
       (10) in section 557(d)(3), by inserting ``1183,'' after 
     ``1104,'';
       (11) in section 1102(a), by striking paragraph (3) and 
     inserting the following:
       ``(3) Unless the court for cause orders otherwise, a 
     committee of creditors may not be appointed in a small 
     business case or a case under subchapter V of this 
     chapter.''; and
       (12) in section 1146(a), by inserting ``or 1191'' after 
     ``1129''.
       (b) Title 28.--Title 28 United States Code, is amended--
       (1) in section 586--
       (A) in subsection (a)(3), by inserting ``(including 
     subchapter V of chapter 11)'' after ``7, 11'';
       (B) in subsection (b), by inserting ``subchapter V of 
     chapter 11 or'' after ``cases under'' the first place it 
     appears;
       (C) in subsection (d)(1), by inserting ``subchapter V of 
     chapter 11 or'' after ``cases under'' each place that term 
     appears; and
       (D) in subsection (e)--
       (i) in paragraph (1), by inserting ``subchapter V of 
     chapter 11 or'' after ``cases under'';
       (ii) in paragraph (2), by inserting ``subchapter V of 
     chapter 11 or'' after ``cases under'' each place that term 
     appears; and
       (iii) by adding at the end the following:
       ``(5) In the event that the services of the trustee in a 
     case under subchapter V of chapter 11 of title 11 are 
     terminated by dismissal or conversion of the case, or upon 
     substantial consummation of a plan under section 1183(c)(1) 
     of that title, the court shall award compensation to the 
     trustee consistent with services performed by the trustee and 
     the limits on the compensation of the trustee established 
     pursuant to paragraph (1) of this subsection.'';
       (2) in section 589b--
       (A) in subsection (a)(1), by inserting ``subchapter V of 
     chapter 11 and'' after ``cases under''; and
       (B) in subsection (d)--
       (i) in the matter preceding paragraph (1), by inserting 
     ``subchapter V of chapter 11 and'' after ``trustees under''; 
     and
       (ii) in the undesignated matter following paragraph (8), by 
     inserting ``subchapter V of chapter 11 and'' after ``cases 
     under''; and
       (3) in section 1930(a)(6)(A), by inserting ``, other than 
     under subchapter V,'' after ``chapter 11 of title 11''.

     SEC. 5. EFFECTIVE DATE.

       This Act and the amendments made by this Act shall take 
     effect 180 days after the date of enactment of this Act.

     SEC. 6. DETERMINATION OF BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the House Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Rhode Island (Mr. Cicilline) and the gentleman from Virginia (Mr. 
Cline) each will control 20 minutes.
  The Chair recognizes the gentleman from Rhode Island.


                             General Leave

  Mr. CICILLINE. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days to revise and extend their remarks and include 
extraneous material on the bill under consideration.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Rhode Island?
  There was no objection.
  Mr. CICILLINE. I yield myself such time as I may consume.
  H.R. 3311, the Small Business Reorganization Act of 2019, is 
legislation that I introduced with the gentleman from Virginia (Mr. 
Cline), to make a series of reforms to current bankruptcy law, which 
would streamline the financial reorganization of small businesses.
  Small, locally-owned businesses are the economic lifeblood of our 
communities. But according to the Small Business Administration, only 
about 20 percent of small businesses survive after their first year.
  It is essential that our bankruptcy system does not punish 
entrepreneurship and investment by foreclosing opportunities for small 
businesses to financially reorganize.
  This gap in the Bankruptcy Code is primarily due to the fact that 
this process was designed with large, complex corporations in mind, and 
does not include adequate protections or safeguards for small 
businesses.
  H.R. 3311 addresses this shortcoming by requiring the appointment of 
a

[[Page H7220]]

trustee to monitor these cases and giving cases greater flexibility to 
approve small business reorganization plans in a fair and equitable 
manner.
  I urge my colleagues to support H.R. 3311, and I reserve the balance 
of my time.
  Mr. CLINE. Mr. Speaker, I yield myself such time as I may consume.
  I rise in support of the bill. I want to thank the gentleman from 
Rhode Island for his leadership on this issue.
  The bankruptcy system is a critical component of our economy. It 
provides an important step, an important safety net for households and 
entrepreneurs when they need a fresh start. It also stabilizes and 
encourages lending, because it is a tried-and-true way for creditors to 
recover as much as feasible when things go wrong for borrowers.
  It is particularly important that the Bankruptcy Code work for small 
businesses. Small business owners are the backbone of communities 
across our country. It is their risk-taking that drives the creation of 
new jobs in America. When they need the Bankruptcy Code's help to 
reorganize their debts and keep their businesses going, the Bankruptcy 
Code should be there as a tool to help them.
  That is why I am particularly happy that the House today considers 
the Small Business Reorganization Act. This important bill offers long-
needed reform of Chapter 11 in the Bankruptcy Code to help small 
businesses, and I am proud to introduce it, along with Chairman 
Cicilline.
  I want to thank the full committee chairman, Chairman Nadler, and 
Ranking Member, Mr. Collins, for their support for this legislation and 
for being original cosponsors this term.
  Mr. Speaker, this bill promises to finally make Chapter 11 work for 
the entrepreneurs whose small businesses are critical to life in 
communities across this Nation, and I encourage all my colleagues to 
support the bill.
  I yield back the balance of my time.
  Mr. CICILLINE. Mr. Speaker, in closing, I am proud to have introduced 
H.R. 3311, the Small Business Reorganization Act of 2019 with the 
gentleman from Virginia (Mr. Cline), and I thank him for his strong 
leadership on this issue, as well as the gentleman from Georgia (Mr. 
Collins).
  This bipartisan legislation was unanimously approved by the Judiciary 
Committee and will address gaps in our bankruptcy system to provide 
financial relief to small businesses.
  This legislation is supported by the nonpartisan National Bankruptcy 
Conference, as well as the American Bankruptcy Institute. I urge my 
colleagues on both sides of the aisle to pass H.R. 3311.
  I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Rhode Island (Mr. Cicilline) that the House suspend the 
rules and pass the bill, H.R. 3311, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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