Small Business Reorganization Act of 2019
Public Law 116-54 · H.R. 3311 · 116th Congress · began in the House
Signed by Donald Trump (R) on Aug 23, 2019 · Finance and Financial Sector
Sponsor: Rep. Ben Cline (R-VA-6)
Cosponsors (3): Rep. David Cicilline, Rep. Doug Collins,
Passage votes
- HouseVoice vote
- SenateVoice vote
Data notes
The final version of the law, as each chamber passed it. A chamber that passed it by voice vote or unanimous consent has no count. “Method not stated” means the record does not say how the chamber voted. Where the record has a member-by-member vote, the “Who voted for it” section shows who voted yea.
Summary
The Congressional Research Service’s plain-language summary of what the law does.
Small Business Reorganization Act of 2019
This bill creates new bankruptcy procedures for small businesses filing for reorganization under Chapter 11 and otherwise revises provisions related to venue and trustee responsibilities in Chapter 11 bankruptcies.
(Sec. 2) The bill provides for the appointment of a trustee for a small business debtor filing under these new procedures. The trustee must assist in developing a reorganization plan, account for the property of the debtor, attend certain hearings and conferences, and ensure that the debtor complies with payments required under the plan.
As under current law, a debtor may operate their business as a debtor in possession during the reorganization. The bill sets forth the rights and powers of a debtor in possession, as well as the procedures for removing a debtor in possession.
The bill provides reporting requirements for debtors and reduces the amount of disclosures required by debtors under current law.
Under these new procedures, only a debtor is allowed to file a reorganization plan. Currently, creditors may also submit plans for court approval for small businesses filing under Chapter 11.
The bill sets forth requirements regarding the filing and contents of a plan of reorganization. A debtor must submit all or a portion of future income to the trustee as needed to execute the plan.
The bill provides authority to the bankruptcy court to approve a reorganization plan for small businesses over the objections of the creditors. However, the plan may not discriminate unfairly, and must be fair and equitable towards each class of claims or interests that is impaired under, and has not accepted, the plan. Currently, creditors must generally vote to approve such a plan. Under a fair and equitable plan as established by this bill, a debtor's projected disposable income for at least three years, but no longer than five, must go towards payments under the plan.
(Sec. 3) The bill also provides additional standards a trustee must meet in order to void a preferential transfer for all Chapter 11 filers. (Preferential transfers generally occur when a debtor transfers property before filing bankruptcy that is beneficial to one creditor to the detriment of others.) Specifically, a trustee may only void such a transfer based on reasonable due diligence and must take into account a party's known or reasonably knowable affirmative defenses.
The bill also revises venue criteria for proceedings connected with a Chapter 11 bankruptcy case. Currently, an action to recover a debt against a noninsider (i.e., those that are not relatives, general partners, and directors or officers of the debtor) of less than $13,650 must be brought in the district court where the defendant resides. The bill increases that amount to $25,000.
(Sec. 5) This bill takes effect 180 days after enactment.
Committees
The committees the bill was sent to, and what each did with it.
Judiciary Committee · House · markup by, referred to, reported bySubcommittee: Administrative State, Regulatory Reform, and Antitrust Subcommittee
Data notes
A committee links to its page only where it exists in the current Congress; older and renamed committees are named without a link.
Related bills
1 bill the Library of Congress relates to this one.
S. 1091Identical bill
Small Business Reorganization Act of 2019
Data notes
Related bills are identified by the Congressional Research Service, the House and the Senate: companion and identical bills, bills with similar text, bills that were folded into this law, and rules that brought it to the floor. A bill that is itself a public law in this site’s data links here; the others link to Congress.gov.
Timeline
From introduction to signing, newest first: the committees, the floor and the president. 18 actions.
- Aug 23, 2019Became lawBecame law · Became Public Law No: 116-54.
- Became lawBecame law · Signed by President.
- Aug 13, 2019FloorFloor · Presented to President.
- Aug 1, 2019FloorFloor · Message on Senate action sent to the House.
- FloorFloor · Passed Senate without amendment by Voice Vote.
- Jul 24, 2019CommitteeCommittee · Received in the Senate, read twice.
- Jul 23, 2019FloorFloor · Motion to reconsider laid on the table Agreed to without objection.
- FloorFloor · On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.
- FloorFloor · DEBATE - The House proceeded with forty minutes of debate on H.R. 3311.
- FloorFloor · Considered under suspension of the rules.
- FloorFloor · Mr. Cicilline moved to suspend the rules and pass the bill, as amended.
- CalendarCalendar · Placed on the Union Calendar, Calendar No. 131.
- CommitteeCommittee · Reported by the Committee on Judiciary. H. Rept. 116-171.
- Jul 11, 2019CommitteeCommittee · Ordered to be Reported by Voice Vote.
- CommitteeCommittee · Committee Consideration and Mark-up Session Held.
- Jun 28, 2019CommitteeCommittee · Referred to the Subcommittee on Antitrust, Commercial, and Administrative Law.
- Jun 18, 2019CommitteeCommittee · Referred to the House Committee on the Judiciary.
- IntroducedIntroduced · Introduced in House
Data notes
Every action the Library of Congress lists for the bill, from introduction to signing, plus the dated committee hearings. The source lists many steps twice (the chamber’s own entry and the Library of Congress copy, or a presidential and a became-law entry with the same words); those are shown once. Amendments are listed in their own section.
Amendments
No amendments to this bill are on record.
Data notes
Amendments offered to this bill in either chamber, as the Library of Congress records them: each with a status read from its last recorded step: agreed to, rejected, withdrawn, ruled out of order, fell with another amendment, or offered with no vote recorded (most Senate amendments are only ever offered). The wording of each amendment is the source’s. Amendments to amendments and amendments to other bills are not listed.
Official record
The bill’s full text is on Congress.gov. Data through Oct 7, 2026.