text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Protecting Employees and Retirees in 
  Municipal Bankruptcies Act of 2014''.
  
  SEC. 2. DETERMINATION OF MUNICIPALITY ELIGIBILITY TO BE A DEBTOR UNDER 
                CHAPTER 9 OF TITLE 11 OF THE UNITED STATES CODE.
  
      (a) Requirements.--Section 109(c) of title 11, United States Code, 
  is amended--
              (1) in paragraph (5)--
                      (A) in subparagraph (B) by inserting ``(but with 
                  respect to creditors who are employees or retirees of 
                  such entity, the term `good faith' shall have the same 
                  meaning as such term has in the National Labor 
                  Relations Act)'' after ``creditors'' the first place it 
                  appears,
                      (B) in subparagraph (C) by striking 
                  ``impracticable'' and inserting ``impossible'', and
                      (C) in subparagraph (D) by striking the period at 
                  the end and inserting a semicolon, and
              (2) by adding at the end the following:
  ``and establishes by clear and convincing evidence that it satisfies 
  the requirements of this subsection.''.
      (b) Repeal of Limitation on Authority To Issue Stay Pending 
  Appeal.--The first sentence of section 921(e) of title 11, United 
  States Code, is amended by striking ``; nor'' and all that follows 
  through ``appeal''.
      (c) Direct Immediate Appeal to Court of Appeals.--Section 158(d) of 
  title 28, United States Code, is amended by adding at the end the 
  following:
      ``(3) The appropriate court of appeals shall have jurisdiction of 
  an appeal of a determination made by a bankruptcy court under section 
  109(c) of title 11 that an entity is eligible to be a debtor under 
  chapter 9 of title 11 and shall consider and determine such appeal on 
  an expedited basis. Such appeal shall be a direct appeal to be reviewed 
  and heard de novo on the merits. The doctrine of equitable mootness 
  shall not apply to appeals under this paragraph.''.
  
  SEC. 3. PROTECTING EMPLOYEES AND RETIREES.
  
      Section 943 of title 11, United States Code, is amended--
              (1) in subsection (b)--
                      (A) in paragraph (6) by striking ``and'' at the 
                  end,
                      (B) by redesignating paragraph (7) as paragraph 
                  (8), and
                      (C) by inserting after paragraph (6) the following:
              ``(7) in a case in which the plan modifies a collective 
          bargaining agreement, or modifies a retiree benefit, including 
          an accrued pension, retiree health, or other retirement benefit 
          otherwise protected by State or municipal law, or a retiree 
          benefit as defined in section 1114(a), in any manner otherwise 
          prohibited by nonbankruptcy law, the authorized representative 
          of the employees covered by such agreement, or the authorized 
          representative of individuals receiving the retiree benefits, 
          as the case may be, agrees to the plan; and'', and
              (2) by adding at the end the following:
      ``(c)(1) For purposes of this section, and except as provided in 
  paragraphs (2) and (3), the authorized representative of those 
  individuals receiving any retiree benefit covered by any collective 
  bargaining agreement shall be the labor organization that is signatory 
  to such agreement unless such organization no longer represents active 
  employees in the bargaining unit the retirees belonged to when they 
  were active employees. In such case, the labor organization that 
  currently represents active employees in that bargaining unit shall be 
  the authorized representative of such individuals.
      ``(2) Paragraph (1) shall not apply if--
              ``(A) such labor organization elects not to serve as the 
          authorized representative of such individuals; or
              ``(B) the court, upon a motion by a party in interest, 
          after notice and hearing, determines that different 
          representation of such individuals is appropriate.
      ``(3) In a case in which the labor organization referred to in 
  paragraph (2) elects not to serve as the authorized representative of 
  those individuals receiving any retiree benefits covered by any 
  collective bargaining agreement to which that labor organization is 
  signatory, or in a case where the court, pursuant to paragraph (2) 
  finds different representation of such individuals appropriate, the 
  court, upon a motion by a party in interest, and after notice and a 
  hearing, shall order the United States trustee to appoint a committee 
  of retired employees if the debtor seeks to modify or not pay the 
  retiree benefits or if the court otherwise determines that it is 
  appropriate, from among such individuals, to serve as the authorized 
  representative of such individuals under this section. The party 
  requesting such relief has the burden of proof.
      ``(d) For retired employees not covered by a collective bargaining 
  agreement, the court, upon a motion by a party in interest, and after 
  notice and a hearing, shall issue an order requiring the United States 
  trustee to appoint a committee of retired employees if the debtor seeks 
  to modify or not pay the retiree benefits, or if the court otherwise 
  determines that it is appropriate, to serve as the authorized 
  representative under this section of such employees. Such party has the 
  burden of proof with respect to such motion.
      ``(e) To comply with an order issued under subsection (c)(3) or 
  (d), notwithstanding any other provision of this chapter, the United 
  States trustee shall appoint, on a proportional basis per capita based 
  on organization membership, individuals chosen from among members of 
  organizations that represent the retirees with respect to whom such 
  order is entered.
      ``(f) Members of a committee appointed under subsection (c)(3) or 
  (d) may not recommend modification of any right to a retiree benefit 
  unless not less than \2/3\ of such members vote in support of such 
  recommendation.''.
target: Protecting Employees and Retirees in Municipal Bankruptcies Act of 2014 - Amends federal bankruptcy law with respect to the requirement for a municipality to be a debtor under Chapter 9 (Adjustment of Debts of a Municipality) that the municipality has negotiated in good faith with creditors and failed to obtain the agreement of those holding at least a majority in amount of the claims of each class that the municipality intends to impair under a plan. Requires that, with respect to creditors who are the municipality's employees or retirees, &quot;good faith&quot; has the same meaning as it does in the National Labor Relations Act.  Requires the municipality also to establish by clear and convincing evidence that it satisfies all eligibility criteria. Repeals the limitation placed upon on court authority to issue a stay pending an appeal of an order for relief.  Amends the Judicial Code to confer upon the appropriate court of appeals jurisdiction of any appeal of a bankruptcy court determination that an entity is eligible to be a municipal debtor. Requires the appellate court to consider and determine such appeal on an expedited basis as a direct appeal, which shall be reviewed and heard de novo on the merits.  Requires the court to confirm the bankruptcy plan of a municipality which modifies a collective bargaining agreement or a retiree benefit in any manner otherwise prohibited by nonbankruptcy law if the plan is agreed to by the authorized representative of either the employees covered by collective bargaining or the individuals receiving the retiree benefits.  Designates the labor organization signatory to a collective bargaining agreement as the authorized representative of individuals receiving retiree benefits covered by that agreement.  Sets forth procedures for court appointment of an authorized representative if a labor organization elects not to serve as one, or if the retired employees are not covered by a collective bargaining agreement.
feat_title: Protecting Employees and Retirees in Municipal Bankruptcies Act of 2014