,,ii #aaeth ,,congress #b;d ,session ,s4 #bbhb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #h1 #bjah ,mr4 ,cornyn 7for himself and ,ms4 ,warren7 introduced the following bill2 which was read twice and referred to the ,committee on the ,judiciary ,a ,,bill ,to amend title #bh1 ,united ,states ,code1 to modify venue requirements relating to bankruptcy proceedings4 #a4 ,short title ,this ,act may be cited as the ,bankruptcy ,venue ,reform ,act of #bjah4 #b4 ,findings and purpose 7a7 ,findings ,congress finds that-- 7#a7 bankruptcy law provides a number of venue options for filing bankruptcy under chapter #aa of title #aa1 ,united ,states ,code1 including place of incorporation1 principal place of business and assets1 or where an affiliate has filed a case under chapter #aa2 7#b7 the wide range of permissible bankruptcy venue options has led to an increase in companies filing for bankruptcy outside of their home ,states1 or the district in which their principal place of business or principal assets are located1 a practice known as forum shopping1 and has resulted in a concentration of bankruptcy cases in a few districts2 7#c7 bankruptcy forum shopping prevents small businesses1 employees1 retirees1 creditors1 and other important stakeholders from fully participating in bankruptcy cases that will have tremendous impacts on their lives1 communities1 and local economies1 and deprives district courts of the ,united ,states of the opportunity to contribute to the development of bankruptcy law in their jurisdictions2 and 7#d7 reducing forum shopping and manipulation in the bankruptcy system will strengthen the integrity1 build public confidence1 and ensure fairness in the bankruptcy system4 7b7 ,purpose ,the purpose of this ,act is to prevent the practice of forum shopping in cases filed under chapter #aa of title #aa1 ,united ,states ,code4 #c4 ,venue of cases under title #aa ,title #bh1 ,united ,states ,code1 is amended-- 7#a7 by striking section #adjh and inserting the following3 #adjh4 ,venue of cases under title #aa 7a7 ,definition ,in this section1 the term principal place of business means1 with respect to a person or entity that is subject to the reporting requirements of section #ac or #ae7;d7 of the ,securities ,exchange ,act of #aicd 7#ae ,u4,s4,c4 #ghm1 #gho7d771 the address of the principal executive office of the person or entity as stated in the last annual report filed under that ,act prior to the commencement of a case under title #aa by the person or entity1 unless another address is shown to be the principal place of business by clear and convincing evidence4 7b7 ,venue ,except as provided in section #adaj1 a case under title #aa may be commenced only in the district court for the district-- 7#a7 in which the domicile1 residence1 or principal assets in the ,united ,states of an individual who is the subject of the case have been located for the #ahj days immediately preceding such commencement1 or for a longer portion of the #ahj-;day period than the domicile1 residence1 or principal assets in the ,united ,states of the individual were located in any other district2 7#b7 in which the principal assets or principal place of business in the ,united ,states of a person or entity1 other than an individual1 that is the subject of the case have been located for the #ahj days immediately preceding the commencement1 or for a longer portion of the #ahj-;day period than the principal place of business or principal assets in the ,united ,states of the person or entity were located in any other district2 or 7#c7 in which there is already pending a case under title #aa concerning an affiliate that directly or indirectly owns1 controls1 is the general partner1 or holds #ej percent or more of the outstanding voting securities1 of the person or entity that is the subject of the later filed case if the pending case was properly filed in that district under this section4 7c7 ,limitations 7#a7 ,in general ,for the purposes of paragraphs 7#b7 and 7#c7 of subsection 7b71 no effect shall be given to a change in the ownership or control of a person or entity that is the subject of the case or its affiliate1 or to a transfer of the principal assets or principal place of business of a person or entity that is the subject of the case or its affiliate to another district1 that takes place-- 7,a7 within #a year before the date on which the case is commenced2 or 7,b7 for the purpose of establishing venue4 7#b7 ,principal assets ,for the purposes of subsection 7b77#b7 and paragraph 7#a7 of this subsection1 principal assets do not include cash or cash equivalents4 7d7 ,burden ,the person or entity that commences a case under title #aa shall bear the burden of establishing by clear and convincing evidence that venue is proper under this section4 2 and 7#b7 by striking section #adab and inserting the following3 #adab4 ,change of venue ,notwithstanding that a case or proceeding under title #aa is filed in the correct division or district1 a district court may nevertheless transfer a case or proceeding under title #aa to a district court for another district or division1 in the interest of justice or for the convenience of the parties4 ,if a case or proceeding under title #aa is filed in the wrong division or district1 the district court shall transfer1 dismiss the case or proceeding1 or1 if it be in the interest of justice1 transfer the case or proceeding under title #aa to any district or division in which it could have been brought4 ,the court shall enter an order on any objection to or request to change venue of a case or proceeding under title #aa not later than #ad days after the filing of such objection or request4 4