Protecting Employees and Retirees in Municipal Bankruptcies Act of 2017
This bill amends federal bankruptcy law to: (1) heighten criteria with respect to a municipality's eligibility for municipal bankruptcy, and (2) revise provisions related to judicial procedure and review in municipality bankruptcy cases.
In addition, the bill expands protections for employees and retirees in cases of municipal bankruptcy. Specifically, if a municipal bankruptcy plan modifies a collective bargaining agreement or retiree benefit, the covered employees' authorized representative must agree to the plan as a condition of the plan's confirmation by the court.
In general, the authorized representative shall be the labor organization that is signatory to the collective bargaining agreement. However, the bill establishes procedures for the court's appointment of a different representative under specified circumstances.