Policy memo

1. Official name of the Bill :

An Act To Amend chapter 11 of title 11, United States Code, to address reorganization of small businesses, and for other purposes.

2. Public Law Number:

PL- 116- 54

3. Statutes at larger citation: 133 STAT 1079

4. Popular name: Small Business Reorganization Act of 2019

5. The date when the bill was signed into law by president:

The bill “Small Business Reorganization Act of 2019” was signed on 23rd of August 2019 (8/23/2019) by President Mr. Donald Trump.

6. Bill Number:

The bill number of the given bill is HR3311 (2019-2020)

7. Sponsor

Mr. Benjamin Cline, a representative of Republican party from Virginia who has been serving since 2019 to till now, is a sponsor of this bill.

8. Co-sponsors

There are three co-sponsors of this bill. Stephen Cohen, Doug Collins and David N. Cicilline.

Stephen Cohen is a representative of democrat from Tennessee and has been serving since 3rd January 2007 till the date.

Doug Collins, a republican party representative from Georgia is the next co-sponsor of this bill.

David N. Cicilline is the next cosponsor of this bill. He represents democratic party and is from Rhode Island.

9. Which policy problem does the bill address?

The bill addresses the problem of small businesses filing for reorganization under Chapter 11.

10. Brief description/summary of the bill and its contents (an abstract)

This bill selected is about the formation and implementation of policy which has primary motive of providing aid to the small business which are in verge of bankruptcy or already being bankrupted. But it also favors the credit unions or the companies by with holding certain incentives from the business after the completion of full procedures of this bill. The bill sets forth requirements regarding the filing and contents of a plan of reorganization. A debtor must submit all or a portion of future income to the trustee as needed to execute the plan (Congress. Gov). The official name of the bill is “Small Business Reorganization Act of 2019.” The time frame acquired for the bill to become this particular law is shown below:

06/18/2019 – Introduced in House

07/23/2019 – Reported by the Committee on Judiciary (H.Rept. 116-171)

07/23/2019 – Passed/agreed to in House. On motion to suspend the rules and pass the bills, as amended Agreed to by voice vote (text: CR H7217-7219)

08/01/2019 – Passed/agreed in Senate; Passed Senate without amendment by voice vote. (CR S5321)

08/13/2019 – Presented to President.

08/23/2019 – Signed by President.

08/23/2019 – Became Public Law No. 116-54

This bill introduces appointment of a trustee to assist the small business debtor for developing reorganization plan and to keep a check on payments to creditors under the debtor’s plan. In this new procedure, only a small business debtor is allowed to file a reorganization plan. As per the bill, there are certain requirements regarding the filing and contents of plan of reorganization and a debtor is required to submit the portion of their future income to trustee in-order to execute the plan. The court doesn’t have to approve a separate disclosure statement, reducing the time and expense necessary to confirm the debtor’s plan. (https://www.bradley.com/insights/publications/2020/03/congress-expands-small-business-bankruptcy-relief-in-historic-coronavirus-aid-bill)

And the bill also give authority to bankruptcy court to approve a plan of small businesses. Under current law, creditors are also required to submit plans for court approval. Moreover, the bill also provides additional standards a trustee has to meet in order to void a preferential transfer for all chapter 11. The bill further revises venue criteria for proceedings connected with a Chapter 11 bankruptcy case. Hence, with the introduction of this bill, it enables the small businesses which were financially distressed to help themselves to recover from bankruptcy and reorganize their businesses.

11. List house committees or subcommittees that have discussed/held hearings/reviewed the bill in the process of it being passed by congress.

The house committees or subcommittees that have discussed/held hearings/reviewed the bill in the process of it being passed by congress is House Judiciary, and House Judiciary subcommittee on Antirust, Commercial, and Administrative Law.

12. Include the link of the bill in Congress.Gov

The link of the bill in Congress.Gov is

https://www.congress.gov/bill/116th-congress/house-bill/3311?q=%7B%22search%22%3A%5B%223311%22%5D%7D&s=7&r=3

References

"H.R.3311 - 116th Congress (2019-2020): Small Business Reorganization Act of 2019." Congress.gov, Library of Congress, 23 August 2019, https://www.congress.gov/bill/116th-congress/house-bill/3311/summary/53.

"H. Rept. 116-171 - SMALL BUSINESS REORGANIZATION ACT OF 2019." Congress.gov, Library of Congress, 10 September 2021, https://www.congress.gov/congressional-report/116th-congress/house-report/171.

"Pages H7217-7219 - Jul 23, 2019." Congress.gov, Library of Congress, 10 September 2021, https://www.congress.gov/congressional-record/volume-165/house-section/page/H7217-7219.

"Page S5321 - Aug 01, 2019." Congress.gov, Library of Congress, 10 September 2021, https://www.congress.gov/congressional-record/volume-165/senate-section/page/S5321.