HB 26.20 Stop Corporate Looting Act

[Dr. MB]

A BILL
To correct oversights in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)

Be it enacted by the House of Representatives and Senate assembled:

Section 1. Title & Definitions

1. This legislation may be cited as the Stop Corporate Looting Act of 2020.

2. BAPCPA is defined herein as an abbreviation for the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

2. "Performance bonus plan," or "PBP," is defined as any transaction covered by Sec. 331 of the BAPCPA as it stood on October 1st, 2020.

Section 2. Closing Bonus Plan Regulation Loopholes

1. Upon initiation of bankruptcy proceedings under 11 U.S. Code Title 11, a company shall provide the bankruptcy judge a comprehensive accounting of PBPs implemented by the company within the prior six months.
a. In such cases where PBPs have been implemented by the company within this period, the company shall reimburse their creditors for an amount equivalent to the value of the PBP.

2. No company shall implement any PBPs within six months of the conclusion of bankruptcy proceedings under 11 U.S. Code Title 11.
a. Should the company be found in violation of this clause, they shall be held liable in the amount of the value of the violating PBP.

3. No PBP prohibited by Sec. 331 of the BAPCPA shall be implemented as part of a reorganization plan authorized under 11 U.S. Code § 1129.

4. Payments made under PBPs paid within the six months prior to the initiation of bankruptcy proceedings under 11 U.S. Code Title 11, or within the six months successive to the conclusion of such proceedings, shall not be federally tax-deductible.

Section 3. Establishing Fact-Finding Processes for Approval of Bonus Plans for Bankrupt Companies

1. The Congress finds that, considering the conflict between private incentive and public interest inherent in BAPCPA proceedings for approval of PBPs, and the difficulty inherent in ascertaining the merits of such plans, bankruptcy judges deserve to see arguments from both companies and the U.S. in situations where they must approve or deny a PBP.

2. If a company engaging in bankruptcy proceedings under the provisions of 11 U.S. Code Title 11 requests that a bankruptcy judge approve a bonus plan as specified under Sec. 331 of the BAPCPA, the U.S. Trustee shall brief the judge on their opinion on whether the PBP should be permitted.
a. The judge shall provide an appropriate amount of time for the Trustee to voice their opinion in such cases.

People's Regional Senate
Passed 6-0 in the Atlasian Senate Assembled,

Sponsor needed

[SevenEleven]

I can sponsor.

[Joseph Cao]

24 hours to object.

[Joseph Cao]

SevenEleven is recognized as sponsor.

[SevenEleven]

Well, seeing no concerns here or in the Senate thread, I shall seek a final vote as soon as possible.

[Joseph Cao]

Yeah, I don't see any problems with this.

And for the record that does not count as a motion (just to be clear), so I shall motion for a final vote. Representatives have 24 hours to object.

[Joseph Cao]

A final vote is now open on this bill for 72 hours.

Representatives, please vote Aye, Nay, or Abstain.

[Left Wing]

Aye

[Senator-elect Spark]

Aye

[Tamika Jackson]

Aye

[Rep Jessica]

Aye

[Adam Griffin]

Aye

[Joseph Cao]

Aye.

[SevenEleven]

Aye.

[P. Clodius Pulcher did nothing wrong]

Aye

[Joseph Cao]

Ah yikes. Sorry for the lateness in getting back to this.

Vote closed – by a vote of 5-0-0-4, with SevenEleven and razze voting too late, this bill passes.

[Joseph Cao]

A BILL
To correct oversights in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)

Be it enacted by the House of Representatives and Senate assembled:

Section 1. Title & Definitions

1. This legislation may be cited as the Stop Corporate Looting Act of 2020.

2. BAPCPA is defined herein as an abbreviation for the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

2. "Performance bonus plan," or "PBP," is defined as any transaction covered by Sec. 331 of the BAPCPA as it stood on October 1st, 2020.

Section 2. Closing Bonus Plan Regulation Loopholes

1. Upon initiation of bankruptcy proceedings under 11 U.S. Code Title 11, a company shall provide the bankruptcy judge a comprehensive accounting of PBPs implemented by the company within the prior six months.
a. In such cases where PBPs have been implemented by the company within this period, the company shall reimburse their creditors for an amount equivalent to the value of the PBP.

2. No company shall implement any PBPs within six months of the conclusion of bankruptcy proceedings under 11 U.S. Code Title 11.
a. Should the company be found in violation of this clause, they shall be held liable in the amount of the value of the violating PBP.

3. No PBP prohibited by Sec. 331 of the BAPCPA shall be implemented as part of a reorganization plan authorized under 11 U.S. Code § 1129.

4. Payments made under PBPs paid within the six months prior to the initiation of bankruptcy proceedings under 11 U.S. Code Title 11, or within the six months successive to the conclusion of such proceedings, shall not be federally tax-deductible.

Section 3. Establishing Fact-Finding Processes for Approval of Bonus Plans for Bankrupt Companies

1. The Congress finds that, considering the conflict between private incentive and public interest inherent in BAPCPA proceedings for approval of PBPs, and the difficulty inherent in ascertaining the merits of such plans, bankruptcy judges deserve to see arguments from both companies and the U.S. in situations where they must approve or deny a PBP.

2. If a company engaging in bankruptcy proceedings under the provisions of 11 U.S. Code Title 11 requests that a bankruptcy judge approve a bonus plan as specified under Sec. 331 of the BAPCPA, the U.S. Trustee shall brief the judge on their opinion on whether the PBP should be permitted.
a. The judge shall provide an appropriate amount of time for the Trustee to voice their opinion in such cases.

People's Regional Senate
Passed 6-0 in the Atlasian Senate Assembled,

People's House of Representatives
Passed 5-0-0-4 in the House of Representatives