,,ii  #aafth ,,congress  #b;d ,session  
,s4 #ejcb  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,december #af1 
#bjbj,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 
#bjbj4  #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 including1 with respect  
to the entity filing bankruptcy-- 7,a7  
any district in which the place of      
incorporation of the entity is located2 
7,b7 any district in which the principal
 place of business or principal assets  
of the entity are located2 and  7,c7 any
 district in which an affiliate of the  

entity has filed a pending case under   
title #aa1 ,united ,states ,code2  7#b7 
the wide range of permissible bankruptcy
 venue options has led to an increase in
 companies filing for bankruptcy outside
 of their home ,states--the district in 
which the principal place of business or
 principal assets of the company is     
located2  7#c7 the practice described in
 paragraph 7#b7 is known as forum       
shopping2  7#d7 forum shopping has      
resulted in a concentration of          
bankruptcy cases in a limited number of 
districts2  7#e7 forum shopping-- 7,a7  
prevents small businesses1 employees1   
retirees1 creditors1 and other important
 stakeholders from fully participating  
in bankruptcy cases that have tremendous
 impacts on their lives1 communities1   
and local economies2 and  7,b7 deprives 
district courts of the ,united ,states  
of the opportunity to contribute to the 
development of bankruptcy law in the    
jurisdictions of those district courts2 
and  7#f7 reducing forum shopping in the

 bankruptcy system will strengthen the  
integrity of1 and build public          
confidence and ensure fairness in1 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 ,principal place of
 business with respect to certain       
entities  7#a7 ,in general ,except as   
provided in paragraph 7#b71 for the     
purposes of this section1 if an entity  
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 term     
principal place of business1 with       
respect to the entity1 means the address
 of the principal executive office of   
the entity as stated in the last annual 

report filed under that ,act before the 
commencement of a case under title #aa  
of which the entity is the subject4     
7#b7 ,exception ,with respect to an     
entity described in paragraph 7#a71 the 
definition of the principal place of    
business under that paragraph shall     
apply for purposes of this section      
unless another address is shown to be   
the principal place of business of the  
entity 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-- 7,a7 for the   
#ahj days immediately preceding such    
commencement2 or  7,b7 for a longer     
portion of the #ahj-;day period         
immediately preceding such commencement 
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 place of business or principal
 assets in the ,united ,states of an    
entity1 other than an individual1 that  
is the subject of the case have been    
located-- 7,a7 for the #ahj days        
immediately preceding such commencement2
 or  7,b7 for a longer portion of the   
#ahj-;day period immediately preceding  
such commencement than the principal    
place of business or principal assets in
 the ,united ,states of the entity were 
located in any other district2 or  7#c7 
in which there is pending a case under  
title #aa concerning an affiliate that  
directly or indirectly owns1 controls1  
or holds #ej percent or more of the     
outstanding voting securities of1 or is 
the general partner of1 the entity that 
is the subject of the later filed case1 
but only if the pending case was        
properly filed in that district in      
accordance with 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 an entity that is the subject of the
 case1 or of an affiliate of the entity1
 or to a transfer of the principal place
 of business or principal assets in the 
,united ,states of an entity that is the
 subject of the case1 or of an affiliate
 of the person entity1 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  7,a7 ,principal      
assets of an entity other than an       
individual ,for the purposes of         
subsection 7b77#b7 and paragraph 7#a7 of
 this subsection-- 7i7 the term         
principal assets does not include cash  
or cash equivalents2 and  7ii7 any      
equity interest in an affiliate is      
located in the district in which the    
holder of the equity interest has its   
principal place of business in the      

,united ,states1 as determined in       
accordance with subsection 7b77#b74     
7,b7 ,equity interests of individuals   
,for the purposes of subsection 7b77#a71
 if the holder of any equity interest in
 an affiliate is an individual1 the     
equity interest is located in the       
district in which the domicile or       
residence in the ,united ,states of the 
holder of the equity interest is        
located1 as determined in accordance    
with subsection 7b77#a74  7d7 ,burden   
,on any objection to1 or request to     
change1 venue under paragraph 7#b7 or   
7#c7 of subsection 7b7 of a case under  
title #aa1 the entity that commences the
 case shall bear the burden of          
establishing by clear and convincing    
evidence that venue is proper under this
 section4  7e7 ,out-of-,state admission 
for government attorneys ,the ,supreme  
,court shall prescribe rules1 in        
accordance with section #bjge1 for cases
 or proceedings arising under title #aa1
 or arising in or related to cases under

 title #aa1 to allow any attorney       
representing a governmental unit to be  
permitted to appear on behalf of the    
governmental unit and intervene without 
charge1 and without meeting any         
requirement under any local court rule  
relating to attorney appearances or the 
use of local counsel1 before any        
bankruptcy court1 district court1 or    
bankruptcy appellate panel4  2 and  7#b7
 by striking section #adab and inserting
 the following3  #adab4 ,change of venue
  7a7 ,in general ,notwithstanding that 
a case or proceeding under title #aa1 or
 arising in or related to a case under  
title #aa1 is filed in the correct      
division or district1 a district court  
may transfer the case or proceeding to a
 district court for another district or 
division-- 7#a7 in the interest of      
justice2 or  7#b7 for the convenience of
 the parties4  7b7 ,incorrectly filed   
cases or proceedings ,if a case or      
proceeding under title #aa1 or arising  
in or related to a case under title #aa1

 is filed in a division or district that
 is improper under section #adjh7;b71   
the district court shall-- 7#a7         
immediately dismiss the case or         
proceeding2 or  7#b7 if it is in the    
interest of justice1 immediately        
transfer the case or proceeding to any  
district court for any district or      
division in which the case or proceeding
 could have been brought4  7c7          
,objections and requests relating to    
changes in venue ,not later than #ad    
days after the filing of an objection   
to1 or a request to change1 venue of a  
case or proceeding under title #aa1 or  
arising in or related to a case under   
title #aa1 the court shall enter an     
order granting or denying the objection 
or request4  4