H. R. 2096
IN THE HOUSE OF REPRESENTATIVES
March 19, 2021
Mrs. Carolyn B. Maloney of New York (for herself and Mr. DeSaulnier) introduced the following bill; which was referred to the Committee on the Judiciary
To prohibit the non-consensual release of claims by States, municipalities, federally recognized Tribes, or the United States against non-debtors, and for other purposes.
This Act may be cited as the
Stop shielding Assets from Corporate Known Liability by Eliminating non-debtor Releases Act or the
Prohibition on certain non-Debtor releases
Section 105(b) of title 11, United States Code, is amended by striking
a court may not and all that follows, and inserting the following:
a court may not—
appoint a receiver in a case under this title; or
except as provided by section 524(g) of this title, enjoin or release a claim against a non-debtor by a State, municipality, federally recognized Tribe, or the United States.
Temporary stay on actions against non-Debtors
Section 105 of title 11, United States Code, is amended by adding at the end the following:
Notwithstanding subsection (b)(2), a court may issue an order staying, for a period not to exceed 90 days, the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other action or proceeding by a State, municipality, federally recognized Tribe, or the United States against a non-debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against a non-debtor that arose before the commencement of the case under this title.