Small Business Bankruptcy Venue Relief Act of 2003

108th CONGRESS
1st Session

H. R. 3581

To amend title 28 of the United States Code with respect to venue in certain preference proceedings under title 11 of the United States Code commenced by the trustee against small businesses.

IN THE HOUSE OF REPRESENTATIVES

November 21, 2003

Mr. BAKER introduced the following bill; which was referred to the Committee on the Judiciary

A BILL

To amend title 28 of the United States Code with respect to venue in certain preference proceedings under title 11 of the United States Code commenced by the trustee against small businesses.

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 Bankruptcy Venue Relief Act of 2003'.

SEC. 2. VENUE IN CERTAIN PREFERENCE PROCEEDINGS UNDER TITLE 11 OF THE UNITED STATES CODE AGAINST CREDITORS THAT ARE SMALL BUSINESSES.

Section 1409(b) of title 28, United States Code, is amended--

(1) by inserting `(1)' after `(b)',

(2) by striking `case to' and inserting the following:

`case--

`(A) to',

(3) by striking `$5,000 only' and inserting the following:

`$5,000; or

`(B) to avoid a transfer under section 547 of title 11 to or for the benefit of a creditor that is a small business and that was not an insider at the time of such transfer, for or on account of an antecedent debt that is not a consumer debt;

only', and

(4) by adding at the end the following:

`(2) For purposes of paragraph (1), the term `small business' means a person that is engaged in commercial or business activities and, as determined in the date on which such proceeding is commenced, has fewer than 25 full-time employees.'.

SEC. 3. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

(a) EFFECTIVE DATE- Except as provided in subsection (b), this Act and the amendments made by this Act shall take effect on the date of the enactment of this Act.

(b) APPLICATION OF AMENDMENTS- The amendments made by this Act shall apply only with respect to cases commenced under title 11 of the United States Code on or after the date of the enactment of this Act.

END