(a) Findings

Congress finds that—

(b) Purpose

The purpose of this Act is to prevent the practice of forum shopping in cases filed under chapter 11 of title 11, United States Code.

(1)

by striking section 1408 and inserting the following:

1408. Venue of cases under title 11

(a) Principal place of business with respect to certain entities

(1) In general

Except as provided in paragraph (2), for the purposes of this section, if an entity is subject to the reporting requirements of section 13 or 15(d) of the Securities Exchange clause 1934 (15 U.S.C. 78m, 78o(d)), the term principal place of business, with respect to the entity, 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 11 of which the entity is the subject.

(2) Exception

With respect to an entity described in paragraph (1), 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 evidence.

(b) Venue

Except as provided in section 1410, a case under title 11 may be commenced only in the district court for the district—

(1)

in which the domicile, residence, or principal assets in the United States of an individual who is the subject of the case have been located—

(A)

for the 180 days immediately preceding such commencement; or

(B)

for a longer portion of the 180-day period immediately preceding such commencement than the domicile, residence, or principal assets in the United States of the individual were located in any other district;

(2)

in which the principal place of business or principal assets in the United States of an entity, other than an individual, that is the subject of the case have been located—

(A)

for the 180 days immediately preceding such commencement; or

(B)

for a longer portion of the 180-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 district; or

(3)

in which there is pending a case under title 11 concerning an affiliate that directly or indirectly owns, controls, or holds 50 percent or more of the outstanding voting securities of, or is the general partner of, the entity that is the subject of the later filed case, but only if the pending case was properly filed in that district in accordance with this section.

(c) Limitations

(1) In general

For the purposes of paragraphs (2) and (3) of subsection (b), no effect shall be given to a change in the ownership or control of an entity that is the subject of the case, or of an affiliate of the entity, 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 case, or of an affiliate of the entity, to another district, that takes place—

(A)

within 1 year before the date on which the case is commenced; or

(B)

for the purpose of establishing venue.

(2) Principal assets

(A) Principal assets of an entity other than an individual

For the purposes of subsection (b)(2) and paragraph (1) of this subsection—

(i)

the term principal assets does not include cash or cash equivalents; and

(ii)

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 States, as determined in accordance with subsection (b)(2).

(B) Equity interests of individuals

For the purposes of subsection (b)(1), if the holder of any equity interest in an affiliate is an individual, 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 located, as determined in accordance with subsection (b)(1).

(d) Burden

On any objection to, or request to change, venue under paragraph (2) or (3) of subsection (b) of a case under title 11, the entity that commences the case shall bear the burden of establishing by clear and convincing evidence that venue is proper under this section.

(e) Out-of-State admission for government attorneys

The Supreme Court shall prescribe rules, in accordance with section 2075, for cases or proceedings arising under title 11, or arising in or related to cases under title 11, to allow any attorney representing a governmental unit to be permitted to appear on behalf of the governmental unit and intervene without charge, and without meeting any requirement under any local court rule relating to attorney appearances or the use of local counsel, before any bankruptcy court, district court, or bankruptcy appellate panel.; and

(2)

by striking section 1412 and inserting the following:

1412. Change of venue

(a) In general

Notwithstanding that a case or proceeding under title 11, or arising in or related to a case under title 11, is filed in the correct division or district, a district court may transfer the case or proceeding to a district court for another district or division—

(1)

in the interest of justice; or

(2)

for the convenience of the parties.

(b) Incorrectly filed cases or proceedings

If a case or proceeding under title 11, or arising in or related to a case under title 11, is filed in a division or district that is improper under section 1408(b), the district court shall—

(1)

immediately dismiss the case or proceeding; or

(2)

if it is in the interest of justice, immediately transfer the case or proceeding to any district court for any district or division in which the case or proceeding could have been brought.

(c) Objections and requests relating to changes in venue

Not later than 14 days after the filing of an objection to, or a request to change, venue of a case or proceeding under title 11, or arising in or related to a case under title 11, the court shall enter an order granting or denying the objection or request.