This bill provides in pertinent part:

Section 1408 of title 28 of the United States Code is amended-

(1) by inserting `(a)' before `Except',

(2) by inserting `and subsection (b) of this section' after `this title', and

(3) by adding at the end the following:

`(b) A case under chapter 11 of title 11 in which the person that is the subject of the case is a corporation may be commenced only in the district court for the district--

`(1) in which the principal place of business in the United States, or principal assets in the United States, of such corporation have been located for 1 year immediately preceding such commencement, or for a longer portion of such 1-year period than the principal place of business in the United States, or principal assets in the United States, of such corporation were located in any other district; or

`(2) in which there is pending a case under chapter 11 of title 11 concerning an affiliate of such corporation, if the affiliate in such pending case directly or indirectly owns, controls, or holds with power to vote more than 50 percent of the outstanding voting securities of such corporation.'.

As the title indicates, this bill will change the venue provisions of the bankruptcy code to permit the filing of Chapter 11's in the districts in which the corporations filing for bankruptcy actually do business as opposed to the state of incorporation. This will, in my opinion, benefit cities and regions around the country in which bankruptcy courts are located, in that local businesses that file Chapter 11 bankruptcy petitions will file in the districts in which their business operations are located. The employees of companies filing Chapter 11 petitions will find it far easier to follow what is happening to their employer if the bankruptcy must be filed closer to home. In addition, a large bankruptcy generates business for local hotels, motels, restaurants and other service providers, increasing not only local business revenue but local tax revenue as well. In my opinion, this is an opportunity to enhance or create jobs in Colorado, and other districts, without the necessity of spending money for infrastructure. We already have a bankruptcy court with a solid bench here in Colorado. We have an excellent bankruptcy bar, as well as excellent accounting firms, financial advisers, restructuring professionals, valuation experts, etc., all of whom are involved today in the bankruptcy process. Passage of H.R. 2533 will greatly enhance the chance of significant Colorado bankruptcies being filed in Colorado as opposed to out of state, providing greater opportunities for local professionals and others.

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