[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 3046 Placed on Calendar Senate (PCS)]






                                                       Calendar No. 807
106th CONGRESS
  2d Session
                                S. 3046

  To amend title 11 of the United States Code, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 14, 2000

 Mr. Lott introduced the following bill; which was read the first time

                           September 15, 2000

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
  To amend title 11 of the United States Code, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Bankruptcy Reform 
Act of 2000''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                    TITLE I--NEEDS-BASED BANKRUPTCY

Sec. 101. Conversion.
Sec. 102. Dismissal or conversion.
Sec. 103. Findings and study.
Sec. 104. Notice of alternatives.
Sec. 105. Debtor financial management training test program.
Sec. 106. Credit counseling.
                 TITLE II--ENHANCED CONSUMER PROTECTION

          Subtitle A--Penalties for Abusive Creditor Practices

Sec. 201. Promotion of alternative dispute resolution.
Sec. 202. Effect of discharge.
Sec. 203. Discouraging abuse of reaffirmation practices.
                   Subtitle B--Priority Child Support

Sec. 211. Definition of domestic support obligation.
Sec. 212. Priorities for claims for domestic support obligations.
Sec. 213. Requirements to obtain confirmation and discharge in cases 
                            involving domestic support obligations.
Sec. 214. Exceptions to automatic stay in domestic support obligation 
                            proceedings.
Sec. 215. Nondischargeability of certain debts for alimony, 
                            maintenance, and support.
Sec. 216. Continued liability of property.
Sec. 217. Protection of domestic support claims against preferential 
                            transfer motions.
Sec. 218. Disposable income defined.
Sec. 219. Collection of child support.
Sec. 220. Nondischargeability of certain educational benefits and 
                            loans.
                 Subtitle C--Other Consumer Protections

Sec. 221. Amendments to discourage abusive bankruptcy filings.
Sec. 222. Sense of Congress.
Sec. 223. Additional amendments to title 11, United States Code.
Sec. 224. Protection of retirement savings in bankruptcy.
Sec. 225. Protection of education savings.
                TITLE III--DISCOURAGING BANKRUPTCY ABUSE

Sec. 301. Reinforcement of the fresh start.
Sec. 302. Discouraging bad faith repeat filings.
Sec. 303. Curbing abusive filings.
Sec. 304. Debtor retention of personal property security.
Sec. 305. Relief from the automatic stay when the debtor does not 
                            complete intended surrender of consumer 
                            debt collateral.
Sec. 306. Giving secured creditors fair treatment in chapter 13.
Sec. 307. Exemptions.
Sec. 308. Residency requirement for homestead exemption.
Sec. 309. Protecting secured creditors in chapter 13 cases.
Sec. 310. Limitation on luxury goods.
Sec. 311. Automatic stay.
Sec. 312. Extension of period between bankruptcy discharges.
Sec. 313. Definition of household goods and antiques.
Sec. 314. Debt incurred to pay nondischargeable debts.
Sec. 315. Giving creditors fair notice in chapters 7 and 13 cases.
Sec. 316. Dismissal for failure to timely file schedules or provide 
                            required information.
Sec. 317. Adequate time to prepare for hearing on confirmation of the 
                            plan.
Sec. 318. Chapter 13 plans to have a 5-year duration in certain cases.
Sec. 319. Sense of the Congress regarding expansion of rule 9011 of the 
                            Federal Rules of Bankruptcy Procedure.
Sec. 320. Prompt relief from stay in individual cases.
Sec. 321. Chapter 11 cases filed by individuals.
Sec. 322. Excluding employee benefit plan participant contributions and 
                            other property from the estate.
Sec. 323. Clarification of postpetition wages and benefits.
Sec. 324. Limitation.
Sec. 325. Exclusive jurisdiction in matters involving bankruptcy 
                            professionals.
Sec. 326. United States trustee program filing fee increase.
Sec. 327. Compensation of trustees in certain cases under chapter 7 of 
                            title 11, United States Code.
Sec. 328. Nondischargeability of debts incurred through the commission 
                            of violence at clinics.
       TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS

           Subtitle A--General Business Bankruptcy Provisions

Sec. 401. Rolling stock equipment.
Sec. 402. Adequate protection for investors.
Sec. 403. Meetings of creditors and equity security holders.
Sec. 404. Protection of refinance of security interest.
Sec. 405. Executory contracts and unexpired leases.
Sec. 406. Creditors and equity security holders committees.
Sec. 407. Amendment to section 546 of title 11, United States Code.
Sec. 408. Limitation.
Sec. 409. Amendment to section 330(a) of title 11, United States Code.
Sec. 410. Postpetition disclosure and solicitation.
Sec. 411. Preferences.
Sec. 412. Venue of certain proceedings.
Sec. 413. Period for filing plan under chapter 11.
Sec. 414. Fees arising from certain ownership interests.
Sec. 415. Creditor representation at first meeting of creditors.
Sec. 416. Definition of disinterested person.
Sec. 417. Factors for compensation of professional persons.
Sec. 418. Appointment of elected trustee.
Sec. 419. Utility service.
Sec. 420. Bankruptcy fees.
Sec. 421. More complete information regarding assets of the estate.
            Subtitle B--Small Business Bankruptcy Provisions

Sec. 431. Flexible rules for disclosure statement and plan.
Sec. 432. Definitions; effect of discharge.
Sec. 433. Standard form disclosure statement and plan.
Sec. 434. Uniform national reporting requirements.
Sec. 435. Uniform reporting rules and forms for small business cases.
Sec. 436. Duties in small business cases.
Sec. 437. Plan filing and confirmation deadlines.
Sec. 438. Plan confirmation deadline.
Sec. 439. Duties of the United States trustee.
Sec. 440. Scheduling conferences.
Sec. 441. Serial filer provisions.
Sec. 442. Expanded grounds for dismissal or conversion and appointment 
                            of trustee.
Sec. 443. Study of operation of title 11, United States Code, with 
                            respect to small businesses.
Sec. 444. Payment of interest.
Sec. 445. Technical correction.
                TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS

Sec. 501. Petition and proceedings related to petition.
Sec. 502. Applicability of other sections to chapter 9.
           TITLE VI--IMPROVED BANKRUPTCY STATISTICS AND DATA

Sec. 601. Audit procedures.
Sec. 602. Improved bankruptcy statistics.
Sec. 603. Uniform rules for the collection of bankruptcy data.
Sec. 604. Sense of Congress regarding availability of bankruptcy data.
                  TITLE VII--BANKRUPTCY TAX PROVISIONS

Sec. 701. Treatment of certain liens.
Sec. 702. Treatment of fuel tax claims.
Sec. 703. Notice of request for a determination of taxes.
Sec. 704. Rate of interest on tax claims.
Sec. 705. Priority of tax claims.
Sec. 706. Priority property taxes incurred.
Sec. 707. No discharge of fraudulent taxes in chapter 13.
Sec. 708. No discharge of fraudulent taxes in chapter 11.
Sec. 709. Stay of tax proceedings limited to prepetition taxes.
Sec. 710. Periodic payment of taxes in chapter 11 cases.
Sec. 711. Avoidance of statutory tax liens prohibited.
Sec. 712. Payment of taxes in the conduct of business.
Sec. 713. Tardily filed priority tax claims.
Sec. 714. Income tax returns prepared by tax authorities.
Sec. 715. Discharge of the estate's liability for unpaid taxes.
Sec. 716. Requirement to file tax returns to confirm chapter 13 plans.
Sec. 717. Standards for tax disclosure.
Sec. 718. Setoff of tax refunds.
Sec. 719. Special provisions related to the treatment of State and 
                            local taxes.
Sec. 720. Dismissal for failure to timely file tax returns.
           TITLE VIII--ANCILLARY AND OTHER CROSS-BORDER CASES

Sec. 801. Amendment to add chapter 15 to title 11, United States Code.
Sec. 802. Amendments to other chapters in title 11, United States Code.
Sec. 803. Claims relating to insurance deposits in cases ancillary to 
                            foreign proceedings.
                TITLE IX--FINANCIAL CONTRACT PROVISIONS

Sec. 901. Bankruptcy Code amendments.
Sec. 902. Damage measure.
Sec. 903. Asset-backed securitizations.
Sec. 904. Effective date; application of amendments.
       TITLE X--PROTECTION OF FAMILY FARMERS AND FAMILY FISHERMEN

Sec. 1001. Reenactment of chapter 12.
Sec. 1002. Debt limit increase.
Sec. 1003. Elimination of requirement that family farmer and spouse 
                            receive over 50 percent of income from 
                            farming operation in year prior to 
                            bankruptcy.
Sec. 1004. Certain claims owed to governmental units.
Sec. 1005. Prohibition of retroactive assessment of disposable income.
Sec. 1006. Family fishermen.
              TITLE XI--HEALTH CARE AND EMPLOYEE BENEFITS

Sec. 1101. Definitions.
Sec. 1102. Disposal of patient records.
Sec. 1103. Administrative expense claim for costs of closing a health 
                            care business.
Sec. 1104. Appointment of ombudsman to act as patient advocate.
Sec. 1105. Debtor in possession; duty of trustee to transfer patients.
Sec. 1106. Establishment of policy and protocols relating to 
                            bankruptcies of health care businesses.
Sec. 1107. Exclusion from program participation not subject to 
                            automatic stay.
                    TITLE XII--TECHNICAL AMENDMENTS

Sec. 1201. Definitions.
Sec. 1202. Adjustment of dollar amounts.
Sec. 1203. Extension of time.
Sec. 1204. Technical amendments.
Sec. 1205. Penalty for persons who negligently or fraudulently prepare 
                            bankruptcy petitions.
Sec. 1206. Limitation on compensation of professional persons.
Sec. 1207. Effect of conversion.
Sec. 1208. Allowance of administrative expenses.
Sec. 1209. Exceptions to discharge.
Sec. 1210. Effect of discharge.
Sec. 1211. Protection against discriminatory treatment.
Sec. 1212. Property of the estate.
Sec. 1213. Preferences.
Sec. 1214. Postpetition transactions.
Sec. 1215. Disposition of property of the estate.
Sec. 1216. General provisions.
Sec. 1217. Abandonment of railroad line.
Sec. 1218. Contents of plan.
Sec. 1219. Discharge under chapter 12.
Sec. 1220. Bankruptcy cases and proceedings.
Sec. 1221. Knowing disregard of bankruptcy law or rule.
Sec. 1222. Transfers made by nonprofit charitable corporations.
Sec. 1223. Protection of valid purchase money security interests.
Sec. 1224. Extensions.
Sec. 1225. Bankruptcy judgeships.
Sec. 1226. Family fishermen.
Sec. 1227. Compensating trustees.
Sec. 1228. Amendment to section 362 of title 11, United States Code.
Sec. 1229. Provision of electronic FTC pamphlet with electronic credit 
                            card applications and solicitations.
Sec. 1230. No bankruptcy for insolvent political committees.
Sec. 1231. Federal election law fines and penalties as nondischargeable 
                            debt.
Sec. 1232. Prohibition on certain retroactive finance charges.
Sec. 1233. Sense of Senate concerning credit worthiness.
Sec. 1234. Judicial education.
Sec. 1235. United States trustee program filing fee increase.
Sec. 1236. Providing requested tax documents to the court.
Sec. 1237. Definition of family farmer.
Sec. 1238. Encouraging creditworthiness.
Sec. 1239. Property no longer subject to redemption.
Sec. 1240. Availability of toll-free access to information.
     TITLE XIII--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS

Sec. 1301. Effective date; application of amendments.
        TITLE XIV--FINANCIAL INSTITUTIONS INSOLVENCY IMPROVEMENT

Sec. 1401. Short title.
Sec. 1402. Treatment of certain agreements by conservators or receivers 
                            of insured depository institutions.
Sec. 1403. Authority of the corporation with respect to failed and 
                            failing institutions.
Sec. 1404. Amendments relating to transfers of qualified financial 
                            contracts.
Sec. 1405. Amendments relating to disaffirmance or repudiation of 
                            qualified financial contracts.
Sec. 1406. Clarifying amendment relating to master agreements.
Sec. 1407. Federal Deposit Insurance Corporation Improvement Act of 
                            1991.
Sec. 1408. Recordkeeping requirements.
Sec. 1409. Exemptions from contemporaneous execution requirement.
Sec. 1410. SIPC stay.
Sec. 1411. Federal Reserve collateral requirements.
Sec. 1412. Effective date; application of amendments.
       TITLE XV--METHAMPHETAMINE AND OTHER CONTROLLED SUBSTANCES

Sec. 1501. Short title.
     Subtitle A--Methamphetamine Production, Trafficking, and Abuse

                     Chapter 1--Criminal Penalties

Sec. 1511. Enhanced punishment of amphetamine laboratory operations.
Sec. 1512. Enhanced punishment of amphetamine or methamphetamine 
                            laboratory operators.
Sec. 1513. Mandatory restitution for violations of Controlled 
                            Substances Act and Controlled Substances 
                            Import and Export Act relating to 
                            amphetamine and methamphetamine.
Sec. 1514. Methamphetamine paraphernalia.
                  Chapter 2--Enhanced Law Enforcement

Sec. 1521. Environmental hazards associated with illegal manufacture of 
                            amphetamine and methamphetamine.
Sec. 1522. Reduction in retail sales transaction threshold for non-safe 
                            harbor products containing pseudoephedrine 
                            or phenlypropanolamine.
Sec. 1523. Training for Drug Enforcement Administration and State and 
                            local law enforcement personnel relating to 
                            clandestine laboratories.
Sec. 1524. Combating methamphetamine and amphetamine in high intensity 
                            drug trafficking areas.
Sec. 1525. Combating amphetamine and methamphetamine manufacturing and 
                            trafficking.
               Chapter 3--Abuse Prevention and Treatment

Sec. 1531. Expansion of methamphetamine research.
Sec. 1532. Methamphetamine and amphetamine treatment initiative by 
                            Center for Substance Abuse Treatment.
Sec. 1533. Expansion of methamphetamine abuse prevention efforts.
Sec. 1534. Study of methamphetamine treatment.
                           Chapter 4--Reports

Sec. 1541. Reports on consumption of methamphetamine and other illicit 
                            drugs in rural areas, metropolitan areas, 
                            and consolidated metropolitan areas.
Sec. 1542. Report on diversion of ordinary over-the-counter 
                            pseudoephedrine and phenylpropanolamine 
                            products.
              Subtitle B--Controlled Substances Generally

                      Chapter 1--Criminal Matters

Sec. 1551. Enhanced punishment for trafficking in list I chemicals.
Sec. 1552. Mail order requirements.
Sec. 1553. Increased penalties for distributing drugs to minors.
Sec. 1554. Increased penalty for drug trafficking in or near a school 
                            or other protected location.
Sec. 1555. Advertisments for drug paraphernalia and schedule I 
                            controlled substances.
Sec. 1556. Theft and transportation of anhydrous ammonia for purposes 
                            of illicit production of controlled 
                            substances.
Sec. 1557. Criminal prohibition on distribution of certain information 
                            relating to the manufacture of controlled 
                            substances.
                        Chapter 2--Other Matters

Sec. 1561. Waiver authority for physicians who dispense or prescribe 
                            certain narcotic drugs for maintenance 
                            treatment or detoxification treatment.
                       Subtitle C--Cocaine Powder

Sec. 1571. Short title.
Sec. 1572. Sentencing for violations involving cocaine powder.
                     Subtitle D--Education Matters

Sec. 1581. Safe schools.
Sec. 1582. Student safety and family school choice.
Sec. 1583. Transfer of revenues.
                       Subtitle E--Miscellaneous

Sec. 1591. Notice; clarification.
Sec. 1592. Domestic terrorism assessment and recovery.
Sec. 1593. Antidrug messages on Federal Government Internet websites.
Sec. 1594. State schools.
Sec. 1595. Student safety and family school choice.
Sec. 1596. Transfer of revenues.
Sec. 1597. Increased penalties for distributing drugs to minors.
Sec. 1598. Increased penalty for drug trafficking in or near a school 
                            or other protected location.
Sec. 1599. Severability.
TITLE XVI--PROTECTION FROM THE IMPACT OF BANKRUPTCY OF CERTAIN ELECTRIC 
                               UTILITIES

Sec. 1601. Short title.
Sec. 1602. Findings and purposes.
Sec. 1603. Unlawful contract and amended contract.
Sec. 1604. Exclusive enforcement.
                 TITLE VII--CONSUMER CREDIT DISCLOSURE

Sec. 1701. Enhanced disclosures under an open end credit plan.
Sec. 1702. Enhanced disclosure for credit extensions secured by a 
                            dwelling.
Sec. 1703. Disclosures related to ``introductory rates''.
Sec. 1704. Internet-based credit card solicitations.
Sec. 1705. Disclosures related to late payment deadlines and penalties.
Sec. 1706. Prohibition on certain actions for failure to incur finance 
                            charges.
Sec. 1707. Dual use debit card.
Sec. 1708. Study of bankruptcy impact of credit extended to dependent 
                            students.

                    TITLE I--NEEDS-BASED BANKRUPTCY

SEC. 101. CONVERSION.

    Section 706(c) of title 11, United States Code, is amended by 
inserting ``or consents to'' after ``requests''.

SEC. 102. DISMISSAL OR CONVERSION.

    (a) In General.--Section 707 of title 11, United States Code, is 
amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 707. Dismissal of a case or conversion to a case under chapter 
              11 or 13'';
        and
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' after ``(b)'';
                    (B) in paragraph (1), as redesignated by 
                subparagraph (A) of this paragraph--
                            (i) in the first sentence--
                                    (I) by striking ``but not at the 
                                request or suggestion'' and inserting 
                                ``, panel trustee or'';
                                    (II) by inserting ``, or, with the 
                                debtor's consent, convert such a case 
                                to a case under chapter 11 or 13 of 
                                this title,'' after ``consumer debts''; 
                                and
                                    (III) by striking ``substantial 
                                abuse'' and inserting ``abuse''; and
                            (ii) by striking the next to last sentence; 
                        and
                    (C) by adding at the end the following:
    ``(2)(A)(i) In considering under paragraph (1) whether the granting 
of relief would be an abuse of the provisions of this chapter, the 
court shall presume abuse exists if the debtor's current monthly income 
reduced by the amounts determined under clauses (ii), (iii), and (iv), 
and multiplied by 60 is not less than the lesser of--
            ``(I) 25 percent of the debtor's nonpriority unsecured 
        claims in the case; or
            ``(II) $15,000.
    ``(ii)(I) The debtor's monthly expenses shall be the applicable 
monthly (excluding payments for debts) expenses under standards issued 
by the Internal Revenue Service for the area in which the debtor 
resides, as in effect on the date of the entry of the order for relief, 
for the debtor, the dependents of the debtor, and the spouse of the 
debtor in a joint case, if the spouse is not otherwise a dependent. In 
addition, the debtor's monthly expenses shall include the debtor's 
reasonably necessary expenses incurred to maintain the safety of the 
debtor and the family of the debtor from family violence as identified 
under section 309 of the Family Violence Prevention and Services Act 
(42 U.S.C. 10408), or other applicable Federal law. The expenses 
included in the debtor's monthly expenses described in the preceding 
sentence shall be kept confidential by the court.
    ``(II) In addition, the debtor's monthly expenses may include, if 
applicable, the continuation of actual expenses paid by the debtor that 
are reasonable and necessary for care and support of an elderly, 
chronically ill, or disabled household member or member of the debtor's 
immediate family (including parents, grandparents, and siblings of the 
debtor, the dependents of the debtor, and the spouse of the debtor in a 
joint case) who is not a dependent and who is unable to pay for such 
reasonable and necessary expenses.
    ``(iii) The debtor's average monthly payments on account of secured 
debts shall be calculated as--
            ``(I) the sum of--
                    ``(aa) the total of all amounts scheduled as 
                contractually due to secured creditors in each month of 
                the 60 months following the date of the petition; and
                    ``(bb) any additional payments to secured creditors 
                necessary for the debtor, in filing a plan under 
                chapter 13 of this title, to maintain possession of the 
                debtor's primary residence, motor vehicle, or other 
                property necessary for the support of the debtor and 
                the debtor's dependents, that serves as collateral for 
                secured debts; divided by
            ``(II) 60.
    ``(iv) The debtor's expenses for payment of all priority claims 
(including priority child support and alimony claims) shall be 
calculated as--
            ``(I) the total amount of debts entitled to priority; 
        divided by
            ``(II) 60.
    ``(B)(i) In any proceeding brought under this subsection, the 
presumption of abuse may be rebutted by demonstrating special 
circumstances that justify additional expenses or adjustments of 
current monthly total income. In order to establish special 
circumstances, the debtor shall be required to--
            ``(I) itemize each additional expense or adjustment of 
        income; and
            ``(II) provide--
                    ``(aa) documentation for such expenses; and
                    ``(bb) a detailed explanation of the special 
                circumstances that make such expenses necessary and 
                reasonable.
    ``(ii) The debtor, and the attorney for the debtor if the debtor 
has an attorney, shall attest under oath to the accuracy of any 
information provided to demonstrate that additional expenses or 
adjustments to income are required.
    ``(iii) The presumption of abuse may be rebutted if the additional 
expenses or adjustments to income referred to in clause (i) cause the 
product of the debtor's current monthly income reduced by the amounts 
determined under clauses (ii), (iii), and (iv) of subparagraph (A) 
multiplied by 60 to be less than the lesser of--
            ``(I) 25 percent of the debtor's nonpriority unsecured 
        claims; or
            ``(II) $15,000.
    ``(C)(i) As part of the schedule of current income and expenditures 
required under section 521, the debtor shall include a statement of the 
debtor's current monthly income, and the calculations that determine 
whether a presumption arises under subparagraph (A)(i), that shows how 
each such amount is calculated.
    ``(ii) The Supreme Court shall promulgate rules under section 2075 
of title 28, that prescribe a form for a statement under clause (i) and 
may provide general rules on the content of the statement.
    ``(3) In considering under paragraph (1) whether the granting of 
relief would be an abuse of the provisions of this chapter in a case in 
which the presumption in subparagraph (A)(i) of such paragraph does not 
apply or has been rebutted, the court shall consider--
            ``(A) whether the debtor filed the petition in bad faith; 
        or
            ``(B) the totality of the circumstances (including whether 
        the debtor seeks to reject a personal services contract and the 
        financial need for such rejection as sought by the debtor) of 
        the debtor's financial situation demonstrates abuse.''.
    (b) Definition.--Title 11, United States Code, is amended--
            (1) in section 101, by inserting after paragraph (10) the 
        following:
            ``(10A) `current monthly income'--
                    ``(A) means the average monthly income from all 
                sources which the debtor, or in a joint case, the 
                debtor and the debtor's spouse, receive without regard 
                to whether the income is taxable income, derived during 
                the 180-day period preceding the date of determination; 
                and
                    ``(B) includes any amount paid by any entity other 
                than the debtor (or, in a joint case, the debtor and 
                the debtor's spouse), on a regular basis to the 
                household expenses of the debtor or the debtor's 
                dependents (and, in a joint case, the debtor's spouse 
                if not otherwise a dependent), but excludes benefits 
                received under the Social Security Act;''; and
            (2) in section 704--
                    (A) by inserting ``(a)'' before ``The trustee 
                shall--''; and
                    (B) by adding at the end the following:
    ``(b)(1) With respect to an individual debtor under this chapter--
            ``(A) the United States trustee or bankruptcy administrator 
        shall review all materials filed by the debtor and, not later 
        than 10 days before the first meeting of creditors, file with 
        the court a statement as to whether the debtor's case would be 
        presumed to be an abuse under section 707(b); and
            ``(B) not later than 5 days after receiving a statement 
        under subparagraph (A), the court shall provide a copy of the 
        statement to all creditors.
    ``(2) The United States trustee or bankruptcy administrator shall 
not later than 30 days after receiving a statement filed under 
paragraph (1) file a motion to dismiss or convert under section 707(b), 
or file a statement setting forth the reasons the United States trustee 
or bankruptcy administrator does not believe that such a motion would 
be appropriate, if based on the filing of such statement with the 
court, the United States trustee or bankruptcy administrator determines 
that the debtor's case should be presumed to be an abuse under section 
707(b) and the product of the debtor's current monthly income, 
multiplied by 12 is not less than--
            ``(A) the highest national or applicable State median 
        family income reported for a family of equal or lesser size, 
        whichever is greater; or
            ``(B) in the case of a household of 1 person, the national 
        or applicable State median household income for 1 earner, 
        whichever is greater.
    ``(3) In any case in which a motion to dismiss or convert, or a 
statement is required to be filed by this subsection, the United States 
trustee or bankruptcy administrator may decline to file a motion to 
dismiss or convert pursuant to section 704(b)(2) or if the product of 
the debtor's current monthly income multiplied by 12--
            ``(A)(i) exceeds 100 percent, but does not exceed 150 
        percent of the national or applicable State median household 
        income reported for a household of equal size, whichever is 
        greater; or
            ``(ii) in the case of a household of 1 person, exceeds 100 
        percent but does not exceed 150 percent of the national or 
        applicable State median household income reported for 1 earner, 
        whichever is greater; and
            ``(B) the product of the debtor's current monthly income 
        (reduced by the amounts determined under section 
        707(b)(2)(A)(ii)) (except for the amount calculated under the 
        other necessary expenses standard issued by the Internal 
        Revenue Service and section 707(b)(2)(A) (iii) and (iv)) 
        multiplied by 60 is less than the greater of--
                    ``(i) 25 percent of the debtor's nonpriority 
                unsecured claims in the case; or
                    ``(ii) $15,000.
    ``(4)(A) The court shall order the counsel for the debtor to 
reimburse the panel trustee for all reasonable costs in prosecuting a 
motion brought under section 707(b), including reasonable attorneys' 
fees, if--
            ``(i) a panel trustee appointed under section 586(a)(1) of 
        title 28 brings a motion for dismissal or conversion under this 
        subsection; and
            ``(ii) the court--
                    ``(I) grants that motion; and
                    ``(II) finds that the action of the counsel for the 
                debtor in filing under this chapter was frivolous.
    ``(B) If the court finds that the attorney for the debtor violated 
Rule 9011, at a minimum, the court shall order--
            ``(i) the assessment of an appropriate civil penalty 
        against the counsel for the debtor; and
            ``(ii) the payment of the civil penalty to the panel 
        trustee or the United States trustee.
    ``(C) In the case of a petition referred to in subparagraph (B), 
the signature of an attorney shall constitute a certificate that the 
attorney has--
            ``(i) performed a reasonable investigation into the 
        circumstances that gave rise to the petition; and
            ``(ii) determined that the petition--
                    ``(I) is well grounded in fact; and
                    ``(II) is warranted by existing law or a good faith 
                argument for the extension, modification, or reversal 
                of existing law and does not constitute an abuse under 
                paragraph (1).
    ``(5)(A) Except as provided in subparagraph (B) and subject to 
paragraph (6), the court may award a debtor all reasonable costs in 
contesting a motion brought by a party in interest (other than a panel 
trustee or United States trustee) under this subsection (including 
reasonable attorneys' fees) if--
            ``(i) the court does not grant the motion; and
            ``(ii) the court finds that--
                    ``(I) the position of the party that brought the 
                motion was not substantially justified; or
                    ``(II) the party brought the motion solely for the 
                purpose of coercing a debtor into waiving a right 
                guaranteed to the debtor under this title.
    ``(B) A party in interest that has a claim of an aggregate amount 
less than $1,000 shall not be subject to subparagraph (A).
    ``(6)(A) Only the judge, United States trustee, bankruptcy 
administrator, or panel trustee may bring a motion under section 
707(b), if the current monthly income of the debtor, or in a joint 
case, the debtor and the debtor's spouse, as of the date of the order 
for relief, when multiplied by 12, is equal to or less than--
            ``(i) the national or applicable State median family income 
        reported for a family of equal or lesser size, whichever is 
        greater; or
            ``(ii) in the case of a household of 1 person, the national 
        or applicable State median household income last reported by 
        the Bureau of the Census for 1 earner, whichever is greater.
    ``(B) Notwithstanding subparagraph (A), the national or applicable 
State median family income for a family of more than 4 individuals 
shall be the national or applicable State median family income last 
reported by the Bureau of the Census for a family of 4 individuals, 
whichever is greater, plus $583 for each additional member of that 
family.''.
    (c) Nonlimitation of Information.--Nothing in this title shall 
limit the ability of a creditor to provide information to a judge, 
United States trustee, bankruptcy administrator or panel trustee.
    (d) Dismissal for Certain Crimes.--Section 707 of title 11, United 
States Code, as amended by subsection (a) of this section, is amended 
by adding at the end the following:
    ``(c)(1) In this subsection--
            ``(A) the term `crime of violence' has the meaning given 
        that term in section 16 of title 18; and
            ``(B) the term `drug trafficking crime' has the meaning 
        given that term in section 924(c)(2) of title 18.
    ``(2) Except as provided in paragraph (3), after notice and a 
hearing, the court, on a motion by the victim of a crime of violence or 
a drug trafficking crime, or at the request of a party in interest, 
shall dismiss a voluntary case filed by an individual debtor under this 
chapter if that individual was convicted of that crime.
    ``(3) The court may not dismiss a case under paragraph (2) if the 
debtor establishes by a preponderance of the evidence that the filing 
of a case under this chapter is necessary to satisfy a claim for a 
domestic support obligation.''.
    (e) Clerical Amendment.--The table of sections for chapter 7 of 
title 11, United States Code, is amended by striking the item relating 
to section 707 and inserting the following:

``707. Dismissal of a case or conversion to a case under chapter 11 or 
                            13.''.

SEC. 103. FINDINGS AND STUDY.

    (a) Findings.--Congress finds that the Secretary of the Treasury 
has the inherent authority to alter the Internal Revenue Service 
standards established to set guidelines for repayment plans as needed 
to accommodate their use under section 707(b) of title 11, United 
States Code.
    (b) Study.--
            (1) In general.--Not later than 3 years after the date of 
        enactment of this Act, the Secretary of the Treasury, in 
        consultation with the Director of the Executive Office of 
        United States Trustees, shall submit a report to the Committee 
        on the Judiciary of the Senate and the Committee on the 
        Judiciary of the House of Representatives containing the 
        findings of the Secretary concerning the utilization of 
        Internal Revenue Service standards for determining--
                    (A) the current monthly expenses of a debtor under 
                section 707(b) of title 11, United States Code; and
                    (B) the impact that the application of those 
                standards has had on debtors and on the bankruptcy 
                courts.
            (2) Recommendation.--The report under paragraph (1) may 
        include recommendations for amendments to title 11, United 
        States Code, that are consistent with the findings of the 
        Secretary of the Treasury under paragraph (1).

SEC. 104. NOTICE OF ALTERNATIVES.

    Section 342(b) of title 11, United States Code, is amended to read 
as follows:
    ``(b)(1) Before the commencement of a case under this title by an 
individual whose debts are primarily consumer debts, that individual 
shall be given or obtain (as required in section 521(a)(1), as part of 
the certification process under subchapter I of chapter 5) a written 
notice prescribed by the United States trustee for the district in 
which the petition is filed under section 586 of title 28.
    ``(2) The notice shall contain the following:
            ``(A) A brief description of chapters 7, 11, 12, and 13 and 
        the general purpose, benefits, and costs of proceeding under 
        each of those chapters.
            ``(B) A brief description of services that may be available 
        to that individual from a nonprofit budget and credit 
        counseling agency that is approved by the United States trustee 
        for that district.''.

SEC. 105. DEBTOR FINANCIAL MANAGEMENT TRAINING TEST PROGRAM.

    (a) Development of Financial Management and Training Curriculum and 
Materials.--The Director of the Executive Office for United States 
Trustees (in this section referred to as the ``Director'') shall--
            (1) consult with a wide range of individuals who are 
        experts in the field of debtor education, including trustees 
        who are appointed under chapter 13 of title 11, United States 
        Code, and who operate financial management education programs 
        for debtors; and
            (2) develop a financial management training curriculum and 
        materials that may be used to educate individual debtors 
        concerning how to better manage their finances.
    (b) Test.--
            (1) In general.--The Director shall select 3 judicial 
        districts of the United States in which to test the 
        effectiveness of the financial management training curriculum 
        and materials developed under subsection (a).
            (2) Availability of curriculum and materials.--For a 1-year 
        period beginning not later than 270 days after the date of 
        enactment of this Act, the curriculum and materials referred to 
        in paragraph (1) shall be made available by the Director, 
        directly or indirectly, on request to individual debtors in 
        cases filed during that 1-year period under chapter 7 or 13 of 
        title 11, United States Code.
    (c) Evaluation.--
            (1) In general.--During the 1-year period referred to in 
        subsection (b), the Director shall evaluate the effectiveness 
        of--
                    (A) the financial management training curriculum 
                and materials developed under subsection (a); and
                    (B) a sample of existing consumer education 
                programs such as those described in the report of the 
                National Bankruptcy Review Commission issued on October 
                20, 1997, that are representative of consumer education 
                programs carried out by--
                            (i) the credit industry;
                            (ii) trustees serving under chapter 13 of 
                        title 11, United States Code; and
                            (iii) consumer counseling groups.
            (2) Report.--Not later than 3 months after concluding the 
        evaluation under paragraph (1), the Director shall submit a 
        report to the Speaker of the House of Representatives and the 
        President pro tempore of the Senate, for referral to the 
        appropriate committees of Congress, containing the findings of 
        the Director regarding the effectiveness of such curriculum, 
        such materials, and such programs.

SEC. 106. CREDIT COUNSELING.

    (a) Who May Be a Debtor.--Section 109 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(h)(1) Subject to paragraphs (2) and (3), and notwithstanding any 
other provision of this section, an individual may not be a debtor 
under this title unless that individual has, during the 180-day period 
preceding the date of filing of the petition of that individual, 
received from an approved nonprofit budget and credit counseling agency 
described in section 111(a) an individual or group briefing (including 
a briefing conducted by telephone or on the Internet) that outlined the 
opportunities for available credit counseling and assisted that 
individual in performing a related budget analysis.
    ``(2)(A) Paragraph (1) shall not apply with respect to a debtor who 
resides in a district for which the United States trustee or bankruptcy 
administrator of the bankruptcy court of that district determines that 
the approved nonprofit budget and credit counseling agency for that 
district is not reasonably able to provide adequate services to the 
additional individuals who would otherwise seek credit counseling from 
that agency by reason of the requirements of paragraph (1).
    ``(B) Each United States trustee or bankruptcy administrator that 
makes a determination described in subparagraph (A) shall review that 
determination not later than 1 year after the date of that 
determination, and not less frequently than every year thereafter. 
Notwithstanding the preceding sentence, a nonprofit budget and credit 
counseling service may be disapproved by the United States trustee or 
bankruptcy administrator at any time.
    ``(3)(A) Subject to subparagraph (B), the requirements of paragraph 
(1) shall not apply with respect to a debtor who submits to the court a 
certification that--
            ``(i) describes exigent circumstances that merit a waiver 
        of the requirements of paragraph (1);
            ``(ii) states that the debtor requested credit counseling 
        services from an approved nonprofit budget and credit 
        counseling agency, but was unable to obtain the services 
        referred to in paragraph (1) during the 5-day period beginning 
        on the date on which the debtor made that request; and
            ``(iii) is satisfactory to the court.
    ``(B) With respect to a debtor, an exemption under subparagraph (A) 
shall cease to apply to that debtor on the date on which the debtor 
meets the requirements of paragraph (1), but in no case may the 
exemption apply to that debtor after the date that is 30 days after the 
debtor files a petition, except that the court, for cause, may order an 
additional 15 days.''.
    (b) Chapter 7 Discharge.--Section 727(a) of title 11, United States 
Code, is amended--
            (1) in paragraph (9), by striking ``or'' at the end;
            (2) in paragraph (10), by striking the period and inserting 
        ``; or''; and
            (3) by adding at the end the following:
            ``(11) after the filing of the petition, the debtor failed 
        to complete an instructional course concerning personal 
        financial management described in section 111.''.
    (c) Chapter 13 Discharge.--Section 1328 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(g) The court shall not grant a discharge under this section to a 
debtor, unless after filing a petition the debtor has completed an 
instructional course concerning personal financial management described 
in section 111.
    ``(h) Subsection (g) shall not apply with respect to a debtor who 
resides in a district for which the United States trustee or bankruptcy 
administrator of the bankruptcy court of that district determines that 
the approved instructional courses are not adequate to service the 
additional individuals who would be required to complete the 
instructional course by reason of the requirements of this section.
    ``(i) Each United States trustee or bankruptcy administrator that 
makes a determination described in subsection (h) shall review that 
determination not later than 1 year after the date of that 
determination, and not less frequently than every year thereafter.''.
    (d) Debtor's Duties.--Section 521 of title 11, United States Code, 
is amended--
            (1) by inserting ``(a)'' before ``The debtor shall--''; and
            (2) by adding at the end the following:
    ``(b) In addition to the requirements under subsection (a), an 
individual debtor shall file with the court--
            ``(1) a certificate from the approved nonprofit budget and 
        credit counseling agency that provided the debtor services 
        under section 109(h); and
            ``(2) a copy of the debt repayment plan, if any, developed 
        under section 109(h) through the approved nonprofit budget and 
        credit counseling agency referred to in paragraph (1).''.
    (e) General Provisions.--
            (1) In general.--Chapter 1 of title 11, United States Code, 
        is amended by adding at the end the following:
``Sec. 111. Nonprofit budget and credit counseling agencies; financial 
              management instructional courses
    ``(a) The clerk of each district shall maintain a list of nonprofit 
budget and credit counseling ageancies that provide 1 or more programs 
described in section 109(h) and a list of instructional courses 
concerning personal financial management that have been approved by--
            ``(1) the United States trustee; or
            ``(2) the bankruptcy administrator for the district.
    ``(b) For inclusion on the approved list under subsection (a), the 
United States trustee or bankruptcy administrator shall require the 
credit counseling service, at a minimum--
            ``(1) to be a nonprofit budget and credit counseling 
        agency, the majority of the board of directors of which--
                    ``(A) are not employed by the agency; and
                    ``(B) will not directly or indirectly benefit 
                financially from the outcome of a credit counseling 
                session;
            ``(2) if a fee is charged for counseling services, to 
        charge a reasonable fee, and to provide services without regard 
        to ability to pay the fee;
            ``(3) to provide for safekeeping and payment of client 
        funds, including an annual audit of the trust accounts and 
        appropriate employee bonding;
            ``(4) to provide full disclosures to clients, including 
        funding sources, counselor qualifications, and possible impact 
        on credit reports;
            ``(5) to provide adequate counseling with respect to client 
        credit problems that includes an analysis of their current 
        situation, what brought them to that financial status, and how 
        they can develop a plan to handle the problem without incurring 
        negative amortization of their debts; and
            ``(6) to provide trained counselors who receive no 
        commissions or bonuses based on the counseling session outcome.
    ``(c)(1) No credit counseling service may provide to a credit 
reporting agency information concerning whether an individual debtor 
has received or sought instruction concerning personal financial 
management from the credit counseling service.
    ``(2) A credit counseling service that willfully or negligently 
fails to comply with any requirement under this title with respect to a 
debtor shall be liable for damages in an amount equal to the sum of--
            ``(A) any actual damages sustained by the debtor as a 
        result of the violation; and
            ``(B) any court costs or reasonable attorneys' fees (as 
        determined by the court) incurred in an action to recover those 
        damages.''.
            (2) Clerical amendment.--The table of sections for chapter 
        1 of title 11, United States Code, is amended by adding at the 
        end the following:

``111. Nonprofit budget and credit counseling agencies; financial 
                            management instructional courses.''.

    (f) Limitation.--Section 362 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(i) If a case commenced under chapter 7, 11, or 13 is dismissed 
due to the creation of a debt repayment plan, for purposes of 
subsection (c)(3), any subsequent case commenced by the debtor under 
any such chapter shall not be presumed to be filed not in good 
faith.''.

                 TITLE II--ENHANCED CONSUMER PROTECTION

          Subtitle A--Penalties for Abusive Creditor Practices

SEC. 201. PROMOTION OF ALTERNATIVE DISPUTE RESOLUTION.

    (a) Reduction of Claim.--Section 502 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(k)(1) The court, on the motion of the debtor and after a 
hearing, may reduce a claim filed under this section based in whole on 
unsecured consumer debts by not more than 20 percent of the claim, if--
            ``(A) the claim was filed by a creditor who unreasonably 
        refused to negotiate a reasonable alternative repayment 
        schedule proposed by an approved credit counseling agency 
        acting on behalf of the debtor;
            ``(B) the offer of the debtor under subparagraph (A)--
                    ``(i) was made at least 60 days before the filing 
                of the petition; and
                    ``(ii) provided for payment of at least 60 percent 
                of the amount of the debt over a period not to exceed 
                the repayment period of the loan, or a reasonable 
                extension thereof; and
            ``(C) no part of the debt under the alternative repayment 
        schedule is nondischargeable.
    ``(2) The debtor shall have the burden of proving, by clear and 
convincing evidence, that--
            ``(A) the creditor unreasonably refused to consider the 
        debtor's proposal; and
            ``(B) the proposed alternative repayment schedule was made 
        in the 60-day period specified in paragraph (1)(B)(i).''.
    (b) Limitation on Avoidability.--Section 547 of title 11, United 
States Code, is amended by adding at the end the following:
    ``(h) The trustee may not avoid a transfer if such transfer was 
made as a part of an alternative repayment plan between the debtor and 
any creditor of the debtor created by an approved credit counseling 
agency.''.

SEC. 202. EFFECT OF DISCHARGE.

    Section 524 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(i) The willful failure of a creditor to credit payments received 
under a plan confirmed under this title (including a plan of 
reorganization confirmed under chapter 11 of this title) in the manner 
required by the plan (including crediting the amounts required under 
the plan) shall constitute a violation of an injunction under 
subsection (a)(2).''.

SEC. 203. DISCOURAGING ABUSE OF REAFFIRMATION PRACTICES.

    (a) In General.--Section 524 of title 11, United States Code, as 
amended by section 202 of this Act, is amended--
            (1) in subsection (c) by striking paragraph (2) and 
        inserting the following:
            ``(2) the debtor received the disclosures described in 
        subsection (i) at or before the time the debtor signed the 
        agreement.'';
            (2) by inserting at the end of the section the following:
    ``(i)(1) The disclosures required under subsection (c) paragraph 
(2) of this section shall consist of the disclosure statement described 
in paragraph (3), completed as required in that paragraph, together 
with the agreement, statement, declaration, motion and order described, 
respectively, in paragraphs (4) through (8) of this subsection, and 
shall be the only disclosures required in connection with the 
reaffirmation.
    ``(2) Disclosures made under this paragraph shall be made clearly 
and conspicuously and in writing. The terms `Amount Reaffirmed' and 
`Annual Percentage Rate' shall be disclosed more conspicuously than 
other terms, data or information provided in connection with this 
disclosure, except that the phrases `Before agreeing to reaffirm a 
debt, review these important disclosures' and `Summary of Reaffirmation 
Agreement' may be equally conspicuous. Disclosures may be made in a 
different order and may use terminology different from that set forth 
in paragraphs (2) through (8), except that the terms `Amount 
Reaffirmed' and `Annual Percentage Rate' must be used where indicated.
    ``(3) The disclosure statement required under this paragraph shall 
consist of the following:
            ``(A) The statement: `Part A: Before agreeing to reaffirm a 
        debt, review these important disclosures:';
            ``(B) Under the heading `Summary of Reaffirmation 
        Agreement', the statement: `This Summary is made pursuant to 
        the requirements of the Bankruptcy Code';
            ``(C) The `Amount Reaffirmed', using that term, which shall 
        be--
                    ``(i) the total amount which the debtor agrees to 
                reaffirm, and
                    ``(ii) the total of any other fees or cost accrued 
                as of the date of the disclosure statement.
            ``(D) In conjunction with the disclosure of the `Amount 
        Reaffirmed', the statements--
                    ``(i) `The amount of debt you have agreed to 
                reaffirm'; and
                    ``(ii) `Your credit agreement may obligate you to 
                pay additional amounts which may come due after the 
                date of this disclosure. Consult your credit 
                agreement.'.
            ``(E) The `Annual Percentage Rate', using that term, which 
        shall be disclosed as--
                    ``(i) if, at the time the petition is filed, the 
                debt is open end credit as defined pursuant to the 
                Truth in Lending Act, title 15, United States Code, 
                section 1601 et. seq., then--
                            ``(I) the annual percentage rate determined 
                        pursuant to title 15, United States Code, 
                        section 1637(b) (5) and (6), as applicable, as 
                        disclosed to the debtor in the most recent 
                        periodic statement prior to the agreement or, 
                        if no such periodic statement has been provided 
                        the debtor during the prior six months, the 
                        annual percentage rate as it would have been so 
                        disclosed at the time the disclosure statement 
                        is given the debtor, or to the extent this 
                        annual percentage rate is not readily available 
                        or not applicable, then
                            ``(II) the simple interest rate applicable 
                        to the amount reaffirmed as of the date the 
                        disclosure statement is given to the debtor, or 
                        if different simple interest rates apply to 
                        different balances, the simple interest rate 
                        applicable to each such balance, identifying 
                        the amount of each such balance included in the 
                        amount reaffirmed, or
                            ``(III) if the entity making the disclosure 
                        elects, to disclose the annual percentage rate 
                        under (I) and the simple interest rate under 
                        (II);
                    ``(ii) if, at the time the petition is filed, the 
                debt is closed end credit as defined pursuant to the 
                Truth in Lending Act, title 15, United States Code, 
                section 1601 et seq., then--
                            ``(I) the annual percentage rate pursuant 
                        to title 15, United States Code, section 
                        1638(a)(4) as disclosed to the debtor in the 
                        most recent disclosure statement given the 
                        debtor prior to the reaffirmation agreement 
                        with respect to the debt, or, if no such 
                        disclosure statement was provided the debtor, 
                        the annual percentage rate as it would have 
                        been so disclosed at the time the disclosure 
                        statement is given the debtor, or to the extent 
                        this annual percentage rate is not readily 
                        available or not applicable, then
                            ``(II) the simple interest rate applicable 
                        to the amount reaffirmed as of the date the 
                        disclosure statement is given the debtor, or if 
                        different simple interest rates apply to 
                        different balances, the simple interest rate 
                        applicable to each such balance, identifying 
                        the amount of such balance included in the 
                        amount reaffirmed, or
                            ``(III) if the entity making the disclosure 
                        elects, to disclose the annual percentage rate 
                        under (I) and the simple interest rate under 
                        (II).
            ``(F) If the underlying debt transaction was disclosed as a 
        variable rate transaction on the most recent disclosure given 
        pursuant to the Truth in Lending Act, title 15, United States 
        Code, section 1601 et seq., by stating `The interest rate on 
        your loan may be a variable interest rate which changes from 
        time to time, so that the annual percentage rate disclosed here 
        may be higher or lower.'.
            ``(G) If the debt is secured by a security interest which 
        has not been waived in whole or in part or determined to be 
        void by a final order of the court at the time of the 
        disclosure, by disclosing that a security interest or lien in 
        goods or property is asserted over some or all of the 
        obligations you are reaffirming and listing the items and their 
        original purchase price that are subject to the asserted 
        security interest, or if not a purchase-money security interest 
        then listing by items or types and the original amount of the 
        loan.
            ``(H) At the election of the creditor, a statement of the 
        repayment schedule using one or a combination of the 
        following--
                    ``(i) by making the statement: `Your first payment 
                in the amount $______ is due on ______ but the future 
                payment amount may be different. Consult your 
                reaffirmation or credit agreement, as applicable.', and 
                stating the amount of the first payment and the due 
                date of that payment in the places provided;
                    ``(ii) by making the statement: `Your payment 
                schedule will be:', and describing the repayment 
                schedule with the number, amount and due dates or 
                period of payments scheduled to repay the obligations 
                reaffirmed to the extent then known by the disclosing 
                party; or
                    ``(iii) by describing the debtor's repayment 
                obligations with reasonable specificity to the extent 
                then known by the disclosing party.
            ``(I) The following statement: `Note: When this disclosure 
        talks about what a creditor ``may'' do, it does not use the 
        word ``may'' to give the creditor specific permission. The word 
        ``may'' is used to tell you what might occur if the law permits 
        the creditor to take the action. If you have questions about 
        your reaffirmation or what the law requires, talk to the 
        attorney who helped you negotiate this agreement. If you don't 
        have an attorney helping you, the judge will explain the effect 
        of your reaffirmation when the reaffirmation hearing is held.'.
            ``(J) The following additional statements:
    ```Reaffirming a debt is a serious financial decision. The law 
requires you to take certain steps to make sure the decision is in your 
best interest. If these steps are not completed, the reaffirmation 
agreement is not effective, even though you have signed it.
            ```1. Read the disclosures in this Part A carefully. 
        Consider the decision to reaffirm carefully. Then, if you want 
        to reaffirm, sign the reaffirmation agreement in Part B (or you 
        may use a separate agreement you and your creditor agree on).
            ```2. Complete and sign Part D and be sure you can afford 
        to make the payments you are agreeing to make and have received 
        a copy of the disclosure statement and a completed and signed 
        reaffirmation agreement.
            ```3. If you were represented by an attorney during the 
        negotiation of the reaffirmation agreement, the attorney must 
        have signed the certification in Part C.
            ```4. If you were not represented by an attorney during the 
        negotiation of the reaffirmation agreement, you must have 
        completed and signed Part E.
            ```5. The original of this disclosure must be filed with 
        the court by you or your creditor. If a separate reaffirmation 
        agreement (other than the one in Part B) has been signed, it 
        must be attached.
            ```6. If you were represented by an attorney during the 
        negotiation of the reaffirmation agreement, your reaffirmation 
        agreement becomes effective upon filing with the court unless 
        the reaffirmation is presumed to be an undue hardship as 
        explained in Part D.
            ```7. If you were not represented by an attorney during the 
        negotiation of the reaffirmation agreement, it will not be 
        effective unless the court approves it. The court will notify 
        you of the hearing on your reaffirmation agreement. You must 
        attend this hearing in bankruptcy court where the judge will 
        review your agreement. The bankruptcy court must approve the 
        agreement as consistent with your best interests, except that 
        no court approval is required if the agreement is for a 
        consumer debt secured by a mortgage, deed of trust, security 
        deed or other lien on your real property, like your home.
    ```Your right to rescind a reaffirmation. You may rescind (cancel) 
your reaffirmation at any time before the bankruptcy court enters a 
discharge order or within 60 days after the agreement is filed with the 
court, whichever is longer. To rescind or cancel, you must notify the 
creditor that the agreement is canceled.
    ```What are your obligations if you reaffirm the debt? A reaffirmed 
debt remains your personal legal obligation. It is not discharged in 
your bankruptcy. That means that if you default on your reaffirmed debt 
after your bankruptcy is over, your creditor may be able to take your 
property or your wages. Otherwise, your obligations will be determined 
by the reaffirmation agreement which may have changed the terms of the 
original agreement. For example, if you are reaffirming an open end 
credit agreement, the creditor may be permitted by that agreement and/
or applicable law to change the terms of the agreement in the future 
under certain conditions.
    ```Are you required to enter into a reaffirmation agreement by any 
law? No, you are not required to reaffirm a debt by any law. Only agree 
to reaffirm a debt if it is in your best interest. Be sure you can 
afford the payments you agree to make.
    ```What if your creditor has a security interest or lien? Your 
bankruptcy discharge does not eliminate any lien on your property. A 
``lien'' is often referred to as a security interest, deed of trust, 
mortgage or security deed. Even if you do not reaffirm and your 
personal liability on the debt is discharged, because of the lien your 
creditor may still have the right to take the security property if you 
do not pay the debt or default on it. If the lien is on an item of 
personal property that is exempt under your State's law or that the 
trustee has abandoned, you may be able to redeem the item rather than 
reaffirm the debt. To redeem, you make a single payment to the creditor 
equal to the current value of the security property, as agreed by the 
parties or determined by the court.'.
    ``(4) The form of reaffirmation agreement required under this 
paragraph shall consist of the following:
    ```Part B: Reaffirmation Agreement. I/we agree to reaffirm the 
obligations arising under the credit agreement described below.
    ```Brief description of credit agreement:
    ```Description of any changes to the credit agreement made as part 
of this reaffirmation agreement:
    ```Signature:                    Date:
    ```Borrower:
    ```Co-borrower, if also reaffirming:
    ```Accepted by creditor:
    ```Date of creditor acceptance:'.
    ``(5)(A) The declaration shall consist of the following:
    ```Part C: Certification by Debtor's Attorney (If Any).
    ```I hereby certify that (1) this agreement represents a fully 
informed and voluntary agreement by the debtor(s); (2) this agreement 
does not impose an undue hardship on the debtor or any dependent of the 
debtor; and (3) I have fully advised the debtor of the legal effect and 
consequences of this agreement and any default under this agreement.
    ```Signature of Debtor's Attorney:      Date:'.
    ``(B) In the case of reaffirmations in which a presumption of undue 
hardship has been established, the certification shall state that in 
the opinion of the attorney, the debtor is able to make the payment.
    ``(6) The statement in support of reaffirmation agreement, which 
the debtor shall sign and date prior to filing with the court, shall 
consist of the following:
    ```Part D: Debtor's Statement in Support of Reaffirmation 
Agreement.
    ```1. I believe this agreement will not impose an undue hardship on 
my dependents or me. I can afford to make the payments on the 
reaffirmed debt because my monthly income (take home pay plus any other 
income received) is $______, and my actual current monthly expenses 
including monthly payments on post-bankruptcy debt and other 
reaffirmation agreements total $______, leaving $______ to make the 
required payments on this reaffirmed debt. I understand that if my 
income less my monthly expenses does not leave enough to make the 
payments, this reaffirmation agreement is presumed to be an undue 
hardship on me and must be reviewed by the court. However, this 
presumption may be overcome if I explain to the satisfaction of the 
court how I can afford to make the payments here: ______.
    ```2. I received a copy of the Reaffirmation Disclosure Statement 
in Part A and a completed and signed reaffirmation agreement.'.
    ``(7) The motion, which may be used if approval of the agreement by 
the court is required in order for it to be effective and shall be 
signed and dated by the moving party, shall consist of the following:
    ```Part E: Motion for Court Approval (To be completed only where 
debtor is not represented by an attorney.). I (we), the debtor, affirm 
the following to be true and correct:
    ```I am not represented by an attorney in connection with this 
reaffirmation agreement.
    ```I believe this agreement is in my best interest based on the 
income and expenses I have disclosed in my Statement in Support of this 
reaffirmation agreement above, and because (provide any additional 
relevant reasons the court should consider):
    ```Therefore, I ask the court for an order approving this 
reaffirmation agreement.'.
    ``(8) The court order, which may be used to approve a 
reaffirmation, shall consist of the following:
    ```Court Order: The court grants the debtor's motion and approves 
the reaffirmation agreement described above.'.
    ``(j) Notwithstanding any other provision of this title:
            ``(1) A creditor may accept payments from a debtor before 
        and after the filing of a reaffirmation agreement with the 
        court.
            ``(2) A creditor may accept payments from a debtor under a 
        reaffirmation agreement which the creditor believes in good 
        faith to be effective.
            ``(3) The requirements of subsections (c)(2) and (i) shall 
        be satisfied if disclosures required under those subsections 
        are given in good faith.
    ``(k) Until 60 days after a reaffirmation agreement is filed with 
the court (or such additional period as the court, after notice and 
hearing and for cause, orders before the expiration of such period), it 
shall be presumed that the reaffirmation agreement is an undue hardship 
on the debtor if the debtor's monthly income less the debtor's monthly 
expenses as shown on the debtor's completed and signed statement in 
support of the reaffirmation agreement required under subsection (i)(6) 
of this section is less than the scheduled payments on the reaffirmed 
debt. This presumption must be reviewed by the court. The presumption 
may be rebutted in writing by the debtor if the statement includes an 
explanation which identifies additional sources of funds to make the 
payments as agreed upon under the terms of the reaffirmation agreement. 
If the presumption is not rebutted to the satisfaction of the court, 
the court may disapprove the agreement. However, no agreement shall be 
disapproved without notice and hearing to the debtor and creditor and 
such hearing must be concluded before the entry of the debtor's 
discharge.''.
    (b) Law Enforcement.--
            (1) In general.--Chapter 9 of title 18, United States Code, 
        is amended by adding at the end the following:
``Sec. 158. Designation of United States attorneys and agents of the 
              Federal Bureau of Investigation to address abusive 
              reaffirmations of debt and materially fraudulent 
              statements in bankruptcy schedules
    ``(a) In General.--The Attorney General of the United States shall 
designate the individuals described in subsection (b) to have primary 
responsibility in carrying out enforcement activities in addressing 
violations of section 152 or 157 relating to abusive reaffirmations of 
debt. In addition to addressing the violations referred to in the 
preceding sentence, the individuals described under subsection (b) 
shall address violations of section 152 or 157 relating to materially 
fraudulent statements in bankruptcy schedules that are intentionally 
false or intentionally misleading.
    ``(b) United States District Attorneys and Agents of the Federal 
Bureau of Investigation--The individuals referred to in subsection (a) 
are--
            ``(1) a United States attorney for each judicial district 
        of the United States; and
            ``(2) an agent of the Federal Bureau of Investigation 
        (within the meaning of section 3107) for each field office of 
        the Federal Bureau of Investigation.
    ``(c) Bankruptcy Investigations.--Each United States attorney 
designated under this section shall have primary responsibility for 
carrying out the duties of a United States attorney under section 3057.
    ``(d) Bankruptcy Procedures.--The bankruptcy courts shall establish 
procedures for referring any case which may contain a materially 
fraudulent statement in a bankruptcy schedule to the individuals 
designated under this section.''.
            (2) Clerical amendment.--The analysis for chapter 9 of 
        title 18, United States Code, is amended by adding at the end 
        the following:

``158. Designation of United States attorneys and agents of the Federal 
                            Bureau of Investigation to address abusive 
                            reaffirmations of debt and materially 
                            fraudulent statements in bankruptcy 
                            schedules.''.

                   Subtitle B--Priority Child Support

SEC. 211. DEFINITION OF DOMESTIC SUPPORT OBLIGATION.

    Section 101 of title 11, United States Code, is amended--
            (1) by striking paragraph (12A); and
            (2) by inserting after paragraph (14) the following:
            ``(14A) `domestic support obligation' means a debt that 
        accrues before or after the entry of an order for relief under 
        this title, including interest that accrues on that debt as 
        provided under applicable nonbankruptcy law notwithstanding any 
        other provision of this title, that is--
                    ``(A) owed to or recoverable by--
                            ``(i) a spouse, former spouse, or child of 
                        the debtor or such child's parent, legal 
                        guardian, or responsible relative; or
                            ``(ii) a governmental unit;
                    ``(B) in the nature of alimony, maintenance, or 
                support (including assistance provided by a 
                governmental unit) of such spouse, former spouse, or 
                child of the debtor or such child's parent, without 
                regard to whether such debt is expressly so designated;
                    ``(C) established or subject to establishment 
                before or after entry of an order for relief under this 
                title, by reason of applicable provisions of--
                            ``(i) a separation agreement, divorce 
                        decree, or property settlement agreement;
                            ``(ii) an order of a court of record; or
                            ``(iii) a determination made in accordance 
                        with applicable nonbankruptcy law by a 
                        governmental unit; and
                    ``(D) not assigned to a nongovernmental entity, 
                unless that obligation is assigned voluntarily by the 
                spouse, former spouse, child, or parent, legal 
                guardian, or responsible relative of the child for the 
                purpose of collecting the debt.''.

SEC. 212. PRIORITIES FOR CLAIMS FOR DOMESTIC SUPPORT OBLIGATIONS.

    Section 507(a) of title 11, United States Code, is amended--
            (1) by striking paragraph (7);
            (2) by redesignating paragraphs (1) through (6) as 
        paragraphs (2) through (7), respectively;
            (3) in paragraph (2), as redesignated, by striking 
        ``First'' and inserting ``Second'';
            (4) in paragraph (3), as redesignated, by striking 
        ``Second'' and inserting ``Third'';
            (5) in paragraph (4), as redesignated, by striking 
        ``Third'' and inserting ``Fourth'';
            (6) in paragraph (5), as redesignated, by striking 
        ``Fourth'' and inserting ``Fifth'';
            (7) in paragraph (6), as redesignated, by striking 
        ``Fifth'' and inserting ``Sixth'';
            (8) in paragraph (7), as redesignated, by striking 
        ``Sixth'' and inserting ``Seventh''; and
            (9) by inserting before paragraph (2), as redesignated, the 
        following:
            ``(1) First:
                    ``(A) Allowed unsecured claims for domestic support 
                obligations that, as of the date of the filing of the 
                petition, are owed to or recoverable by a spouse, 
                former spouse, or child of the debtor, or the parent, 
                legal guardian, or responsible relative of such child, 
                without regard to whether the claim is filed by such 
                person or is filed by a governmental unit on behalf of 
                that person, on the condition that funds received under 
                this paragraph by a governmental unit under this title 
                after the date of filing of the petition shall be 
                applied and distributed in accordance with applicable 
                nonbankruptcy law.
                    ``(B) Subject to claims under subparagraph (A), 
                allowed unsecured claims for domestic support 
                obligations that, as of the date the petition was filed 
                are assigned by a spouse, former spouse, child of the 
                debtor, or such child's parent, legal guardian, or 
                responsible relative to a governmental unit (unless 
                such obligation is assigned voluntarily by the spouse, 
                former spouse, child, parent, legal guardian, or 
                responsible relative of the child for the purpose of 
                collecting the debt) or are owed directly to or 
                recoverable by a government unit under applicable 
                nonbankruptcy law, on the condition that funds received 
                under this paragraph by a governmental unit under this 
                title after the date of filing of the petition be 
                applied and distributed in accordance with applicable 
                nonbankruptcy law.''.

SEC. 213. REQUIREMENTS TO OBTAIN CONFIRMATION AND DISCHARGE IN CASES 
              INVOLVING DOMESTIC SUPPORT OBLIGATIONS.

    Title 11, United States Code, is amended--
            (1) in section 1129(a), by adding at the end the following:
            ``(14) If the debtor is required by a judicial or 
        administrative order or statute to pay a domestic support 
        obligation, the debtor has paid all amounts payable under such 
        order or statute for such obligation that first become payable 
        after the date on which the petition is filed.'';
            (2) in section 1208(c)--
                    (A) in paragraph (8), by striking ``or'' at the 
                end;
                    (B) in paragraph (9), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(10) failure of the debtor to pay any domestic support 
        obligation that first becomes payable after the date on which 
        the petition is filed.'';
            (3) in section 1222(a)--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(4) notwithstanding any other provision of this section, 
        a plan may provide for less than full payment of all amounts 
        owed for a claim entitled to priority under section 
        507(a)(1)(B) only if the plan provides that all of the debtor's 
        projected disposable income for a 5-year period, beginning on 
        the date that the first payment is due under the plan, will be 
        applied to make payments under the plan.'';
            (4) in section 1222(b)--
                    (A) by redesignating paragraph (10) as paragraph 
                (11); and
                    (B) by inserting after paragraph (9) the following:
            ``(10) provide for the payment of interest accruing after 
        the date of the filing of the petition on unsecured claims that 
        are nondischargeable under section 1328(a), except that such 
        interest may be paid only to the extent that the debtor has 
        disposable income available to pay such interest after making 
        provision for full payment of all allowed claims;'';
            (5) in section 1225(a)--
                    (A) in paragraph (5), by striking ``and'' at the 
                end;
                    (B) in paragraph (6), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(7) if the debtor is required by a judicial or 
        administrative order or statute to pay a domestic support 
        obligation, the debtor has paid all amounts payable under such 
        order for such obligation that first become payable after the 
        date on which the petition is filed.'';
            (6) in section 1228(a), in the matter preceding paragraph 
        (1), by inserting ``, and in the case of a debtor who is 
        required by a judicial or administrative order to pay a 
        domestic support obligation, after such debtor certifies that 
        all amounts payable under such order or statute that are due on 
        or before the date of the certification (including amounts due 
        before the petition was filed, but only to the extent provided 
        for in the plan) have been paid'' after ``completion by the 
        debtor of all payments under the plan'';
            (7) in section 1307(c)--
                    (A) in paragraph (9), by striking ``or'' at the 
                end;
                    (B) in paragraph (10), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(11) failure of the debtor to pay any domestic support 
        obligation that first becomes payable after the date on which 
        the petition is filed.'';
            (8) in section 1322(a)--
                    (A) in paragraph (2), by striking ``and'' at the 
                end;
                    (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding in the end the following:
            ``(4) notwithstanding any other provision of this section, 
        a plan may provide for less than full payment of all amounts 
        owed for a claim entitled to priority under section 
        507(a)(1)(B) only if the plan provides that all of the debtor's 
        projected disposable income for a 5-year period beginning on 
        the date that the first payment is due under the plan will be 
        applied to make payments under the plan.'';
            (9) in section 1322(b)--
                    (A) in paragraph (9), by striking ``; and'' and 
                inserting a semicolon;
                    (B) by redesignating paragraph (10) as paragraph 
                (11); and
                    (C) inserting after paragraph (9) the following:
            ``(10) provide for the payment of interest accruing after 
        the date of the filing of the petition on unsecured claims that 
        are nondischargeable under section 1328(a), except that such 
        interest may be paid only to the extent that the debtor has 
        disposable income available to pay such interest after making 
        provision for full payment of all allowed claims; and'';
            (10) in section 1325(a)--
                    (A) in paragraph (5), by striking ``and'' at the 
                end;
                    (B) in paragraph (6), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(7) if the debtor is required by a judicial or 
        administrative order or statute to pay a domestic support 
        obligation, the debtor has paid amounts payable after the date 
        on which the petition is filed.''; and
            (11) in section 1328(a), in the matter preceding paragraph 
        (1), by inserting ``, and in the case of a debtor who is 
        required by a judicial or administrative order to pay a 
        domestic support obligation, after such debtor certifies that 
        all amounts payable under such order or statute that are due on 
        or before the date of the certification (including amounts due 
        before the petition was filed, but only to the extent provided 
        for in the plan) have been paid'' after ``completion by the 
        debtor of all payments under the plan''.

SEC. 214. EXCEPTIONS TO AUTOMATIC STAY IN DOMESTIC SUPPORT OBLIGATION 
              PROCEEDINGS.

    Section 362(b) of title 11, United States Code, is amended by 
striking paragraph (2) and inserting the following:
            ``(2) under subsection (a)--
                    ``(A) of the commencement or continuation of a 
                civil action or proceeding--
                            ``(i) for the establishment of paternity;
                            ``(ii) for the establishment or 
                        modification of an order for domestic support 
                        obligations;
                            ``(iii) concerning child custody or 
                        visitation;
                            ``(iv) for the dissolution of a marriage 
                        except to the extent that such a proceeding 
                        seeks to determine the division of property 
                        which is property of the estate; or
                            ``(v) regarding domestic violence;
                    ``(B) the collection of a domestic support 
                obligation from property that is not property of the 
                estate;
                    ``(C) with respect to the withholding of income 
                that is property of the estate or property of the 
                debtor for payment of a domestic support obligation 
                pursuant to a judicial or administrative order;
                    ``(D) the withholding, suspension, or restriction 
                of drivers' licenses, professional and occupational 
                licenses, and recreational licenses under State law, as 
                specified in section 466(a)(16) of the Social Security 
                Act (42 U.S.C. 666(a)(16));
                    ``(E) the reporting of overdue support owed by a 
                parent to any consumer reporting agency as specified in 
                section 466(a)(7) of the Social Security Act (42 U.S.C. 
                666(a)(7));
                    ``(F) the interception of tax refunds, as specified 
                in sections 464 and 466(a)(3) of the Social Security 
                Act (42 U.S.C. 664 and 666(a)(3)) or under an analogous 
                State law; or
                    ``(G) the enforcement of medical obligations as 
                specified under title IV of the Social Security Act (42 
                U.S.C. 601 et seq.).'';

SEC. 215. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY, 
              MAINTENANCE, AND SUPPORT.

    Section 523 of title 11, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (5) and inserting the 
                following:
            ``(5) for a domestic support obligation;'';
                    (B) in paragraph (15)--
                            (i) by inserting ``to a spouse, former 
                        spouse, or child of the debtor and'' before 
                        ``not of the kind'';
                            (ii) by inserting ``or'' after ``court of 
                        record''; and
                            (iii) by striking ``unless--'' and all that 
                        follows through the end of the paragraph and 
                        inserting a semicolon; and
                    (C) by striking paragraph (18); and
            (2) in subsection (c), by striking ``(6), or (15)'' and 
        inserting ``or (6)''.

SEC. 216. CONTINUED LIABILITY OF PROPERTY.

    Section 522 of title 11, United States Code, is amended--
            (1) in subsection (c), by striking paragraph (1) and 
        inserting the following:
            ``(1) a debt of a kind specified in paragraph (1) or (4) of 
        section 523(a) (in which case, notwithstanding any provision of 
        applicable nonbankruptcy law to the contrary, such property 
        shall be liable for a debt of a kind specified in section 
        523(a)(4));''; and
            (2) in subsection (f)(1)(A), by striking the dash and all 
        that follows through the end of the subparagraph and inserting 
        ``of a kind that is specified in section 523(a)(4); or''.

SEC. 217. PROTECTION OF DOMESTIC SUPPORT CLAIMS AGAINST PREFERENTIAL 
              TRANSFER MOTIONS.

    Section 547(c)(7) of title 11, United States Code, is amended to 
read as follows:
            ``(7) to the extent such transfer was a bona fide payment 
        of a debt for a domestic support obligation; or''.

SEC. 218. DISPOSABLE INCOME DEFINED.

    (a) Confirmation of Plan Under Chapter 12.--Section 1225(b)(2)(A) 
of title 11, United States Code, is amended by inserting ``or for a 
domestic support obligation that first becomes payable after the date 
on which the petition is filed'' after ``dependent of the debtor''.
    (b) Confirmation of Plan Under Chapter 13.--Section 1325(b)(2)(A) 
of title 11, United States Code, is amended by inserting ``or for a 
domestic support obligation that first becomes payable after the date 
on which the petition is filed'' after ``dependent of the debtor''.

SEC. 219. COLLECTION OF CHILD SUPPORT.

    (a) Duties of Trustee Under Chapter 7.--Section 704 of title 11, 
United States Code, as amended by section 102(b) of this Act, is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (8), by striking ``and'' at the 
                end;
                    (B) in paragraph (9), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(10) if, with respect to an individual debtor, there is a 
        claim for a domestic support obligation, provide the applicable 
        notification specified in subsection (c).''; and
            (2) by adding at the end the following:
    ``(c)(1) In any case described in subsection (a)(10), the trustee 
shall--
            ``(A)(i) notify in writing the holder of the claim of the 
        right of that holder to use the services of a State child 
        support enforcement agency established under sections 464 and 
        466 of the Social Security Act (42 U.S.C. 664 and 666, 
        respectively) for the State in which the holder resides for 
        assistance in collecting child support during and after the 
        bankruptcy procedures;
            ``(ii) include in the notice under this paragraph the 
        address and telephone number of the child support enforcement 
        agency; and
            ``(iii) include in the notice an explanation of the rights 
        of the holder of the claim to payment of the claim under this 
        chapter; and
            ``(B)(i) notify in writing the State child support agency 
        of the State in which the holder of the claim resides of the 
        claim;
            ``(ii) include in the notice under this paragraph the name, 
        address, and telephone number of the holder of the claim; and
            ``(iii) at such time as the debtor is granted a discharge 
        under section 727, notify the holder of that claim and the 
        State child support agency of the State in which that holder 
        resides of--
                    ``(I) the granting of the discharge;
                    ``(II) the last recent known address of the debtor;
                    ``(III) the last recent known name and address of 
                the debtor's employer; and
                    ``(IV) with respect to the debtor's case, the name 
                of each creditor that holds a claim that--
                            ``(aa) is not discharged under paragraph 
                        (2), (4), or (14A) of section 523(a); or
                            ``(bb) was reaffirmed by the debtor under 
                        section 524(c).
    ``(2)(A) A holder of a claim or a State child support agency may 
request from a creditor described in paragraph (1)(B)(iii)(IV) the last 
known address of the debtor.
    ``(B) Notwithstanding any other provision of law, a creditor that 
makes a disclosure of a last known address of a debtor in connection 
with a request made under subparagraph (A) shall not be liable to the 
debtor or any other person by reason of making that disclosure.''.
    (b) Duties of Trustee Under Chapter 11.--Section 1106 of title 11, 
United States Code, is amended--
            (1) in subsection (a)--
                    (A) in paragraph (6), by striking ``and'' at the 
                end;
                    (B) in paragraph (7), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(8) if, with respect to an individual debtor, there is a 
        claim for a domestic support obligation, provide the applicable 
        notification specified in subsection (c).''; and
            (2) by adding at the end the following:
    ``(c)(1) In any case described in subsection (a)(7), the trustee 
shall--
            ``(A)(i) notify in writing the holder of the claim of the 
        right of that holder to use the services of a State child 
        support enforcement agency established under sections 464 and 
        466 of the Social Security Act (42 U.S.C. 664 and 666) for the 
        State in which the holder resides; and
            ``(ii) include in the notice under this paragraph the 
        address and telephone number of the child support enforcement 
        agency; and
            ``(B)(i) notify, in writing, the State child support agency 
        (of the State in which the holder of the claim resides) of the 
        claim;
            ``(ii) include in the notice under this paragraph the name, 
        address, and telephone number of the holder of the claim; and
            ``(iii) at such time as the debtor is granted a discharge 
        under section 1141, notify the holder of the claim and the 
        State child support agency of the State in which that holder 
        resides of--
                    ``(I) the granting of the discharge;
                    ``(II) the last recent known address of the debtor;
                    ``(III) the last recent known name and address of 
                the debtor's employer; and
                    ``(IV) with respect to the debtor's case, the name 
                of each creditor that holds a claim that--
                            ``(aa) is not discharged under paragraph 
                        (2), (3), or (14) of section 523(a); or
                            ``(bb) was reaffirmed by the debtor under 
                        section 524(c).
    ``(2)(A) A holder of a claim or a State child support agency may 
request from a creditor described in paragraph (1)(B)(iii)(IV) the last 
known address of the debtor.
    ``(B) Notwithstanding any other provision of law, a creditor that 
makes a disclosure of a last known address of a debtor in connection 
with a request made under subparagraph (A) shall not be liable to the 
debtor or any other person by reason of making that disclosure.''.
    (c) Duties of Trustee Under Chapter 12.--Section 1202 of title 11, 
United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (4), by striking ``and'' at the 
                end;
                    (B) in paragraph (5), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) if, with respect to an individual debtor, there is a 
        claim for a domestic support obligation, provide the applicable 
        notification specified in subsection (c).''; and
            (2) by adding at the end the following:
    ``(c)(1) In any case described in subsection (b)(6), the trustee 
shall--
            ``(A)(i) notify in writing the holder of the claim of the 
        right of that holder to use the services of a State child 
        support enforcement agency established under sections 464 and 
        466 of the Social Security Act (42 U.S.C. 664 and 666) for the 
        State in which the holder resides; and
            ``(ii) include in the notice under this paragraph the 
        address and telephone number of the child support enforcement 
        agency; and
            ``(B)(i) notify, in writing, the State child support agency 
        (of the State in which the holder of the claim resides) of the 
        claim;
            ``(ii) include in the notice under this paragraph the name, 
        address, and telephone number of the holder of the claim; and
            ``(iii) at such time as the debtor is granted a discharge 
        under section 1228, notify the holder of the claim and the 
        State child support agency of the State in which that holder 
        resides of--
                    ``(I) the granting of the discharge;
                    ``(II) the last recent known address of the debtor;
                    ``(III) the last recent known name and address of 
                the debtor's employer; and
                    ``(IV) with respect to the debtor's case, the name 
                of each creditor that holds a claim that--
                            ``(aa) is not discharged under paragraph 
                        (2), (3), or (14) of section 523(a); or
                            ``(bb) was reaffirmed by the debtor under 
                        section 524(c).
    ``(2)(A) A holder of a claim or a State child support agency may 
request from a creditor described in paragraph (1)(B)(iii)(IV) the last 
known address of the debtor.
    ``(B) Notwithstanding any other provision of law, a creditor that 
makes a disclosure of a last known address of a debtor in connection 
with a request made under subparagraph (A) shall not be liable to the 
debtor or any other person by reason of making that disclosure.''.
    (d) Duties of Trustee Under Chapter 13.--Section 1302 of title 11, 
United States Code, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (4), by striking ``and'' at the 
                end;
                    (B) in paragraph (5), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) if, with respect to an individual debtor, there is a 
        claim for a domestic support obligation, provide the applicable 
        notification specified in subsection (d); and
            ``(7) provide information relating to the administration of 
        cases that is practical to any not-for-profit entity which 
        shall provide information to parties in interest in a timely 
        and convenient manner, including telephonic and Internet 
        access, at no cost or a nominal cost.
        An entity described in paragraph (7) shall provide parties in 
        interest with reasonable information about each case on behalf 
        of the trustee of that case, including the status of the 
        debtor's payments to the plan, the unpaid balance payable to 
        each creditor treated by the plan, and the amount and date of 
        payments made under the plan. The trustee shall have no duty to 
        provide information under paragraph (7) if no such entity has 
        been established.''; and
            (2) by adding at the end the following:
    ``(d)(1) In any case described in subsection (b)(6), the trustee 
shall--
            ``(A)(i) notify in writing the holder of the claim of the 
        right of that holder to use the services of a State child 
        support enforcement agency established under sections 464 and 
        466 of the Social Security Act (42 U.S.C. 664 and 666, 
        respectively) for the State in which the holder resides; and
            ``(ii) include in the notice under this paragraph the 
        address and telephone number of the child support enforcement 
        agency; and
            ``(B)(i) notify in writing the State child support agency 
        of the State in which the holder of the claim resides of the 
        claim;
            ``(ii) include in the notice under this paragraph the name, 
        address, and telephone number of the holder of the claim; and
            ``(iii) at such time as the debtor is granted a discharge 
        under section 1328, notify the holder of the claim and the 
        State child support agency of the State in which that holder 
        resides of--
                    ``(I) the granting of the discharge;
                    ``(II) the last recent known address of the debtor;
                    ``(III) the last recent known name and address of 
                the debtor's employer; and
                    ``(IV) with respect to the debtor's case, the name 
                of each creditor that holds a claim that--
                            ``(aa) is not discharged under paragraph 
                        (2), (3), or (14) of section 523(a); or
                            ``(bb) was reaffirmed by the debtor under 
                        section 524(c).
    ``(2)(A) A holder of a claim or a State child support agency may 
request from a creditor described in paragraph (1)(B)(iii)(IV) the last 
known address of the debtor.
    ``(B) Notwithstanding any other provision of law, a creditor that 
makes a disclosure of a last known address of a debtor in connection 
with a request made under subparagraph (A) shall not be liable to the 
debtor or any other person by reason of making that disclosure.''.

SEC. 220. NONDISCHARGEABILITY OF CERTAIN EDUCATIONAL BENEFITS AND 
              LOANS.

    Section 523(a) of title 11, United States Code, is amended by 
striking paragraph (8) and inserting the following:
            ``(8) unless excepting such debt from discharge under this 
        paragraph would impose an undue hardship on the debtor and the 
        debtor's dependents, for--
                    ``(A)(i) an educational benefit overpayment or loan 
                made, insured, or guaranteed by a governmental unit, or 
                made under any program funded in whole or in part by a 
                governmental unit or nonprofit institution; or
                    ``(ii) an obligation to repay funds received as an 
                educational benefit, scholarship, or stipend; or
                    ``(B) any other educational loan that is a 
                qualified education loan, as that term is defined in 
                section 221(e)(1) of the Internal Revenue Code of 1986, 
                incurred by an individual debtor;''.

                 Subtitle C--Other Consumer Protections

SEC. 221. AMENDMENTS TO DISCOURAGE ABUSIVE BANKRUPTCY FILINGS.

    Section 110 of title 11, United States Code, is amended--
            (1) in subsection (a)(1), by inserting ``, under the direct 
        supervision of an attorney,'' after ``who'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by adding at the end the 
                following: ``If a bankruptcy petition preparer is not 
                an individual, then an officer, principal, responsible 
                person, or partner of the preparer shall be required 
                to--
            ``(A) sign the document for filing; and
            ``(B) print on the document the name and address of that 
        officer, principal, responsible person or partner.'';
                    (B) by striking paragraph (2) and inserting the 
                following:
    ``(2)(A) Before preparing any document for filing or accepting any 
fees from a debtor, the bankruptcy petition preparer shall provide to 
the debtor a written notice to debtors concerning bankruptcy petition 
preparers, which shall be on an official form issued by the Judicial 
Conference of the United States.
    ``(B) The notice under subparagraph (A)--
            ``(i) shall inform the debtor in simple language that a 
        bankruptcy petition preparer is not an attorney and may not 
        practice law or give legal advice;
            ``(ii) may contain a description of examples of legal 
        advice that a bankruptcy petition preparer is not authorized to 
        give, in addition to any advice that the preparer may not give 
        by reason of subsection (e)(2); and
            ``(iii) shall--
                    ``(I) be signed by--
                            ``(aa) the debtor; and
                            ``(bb) the bankruptcy petition preparer, 
                        under penalty of perjury; and
                    ``(II) be filed with any document for filing.'';
            (3) in subsection (c)--
                    (A) in paragraph (2)--
                            (i) by striking ``(2) For purposes'' and 
                        inserting ``(2)(A) Subject to subparagraph (B), 
                        for purposes''; and
                            (ii) by adding at the end the following:
    ``(B) If a bankruptcy petition preparer is not an individual, the 
identifying number of the bankruptcy petition preparer shall be the 
Social Security account number of the officer, principal, responsible 
person, or partner of the preparer.''; and
                    (B) by striking paragraph (3);
            (4) in subsection (d)--
                    (A) by striking ``(d)(1)'' and inserting ``(d)''; 
                and
                    (B) by striking paragraph (2);
            (5) in subsection (e)--
                    (A) by striking paragraph (2); and
                    (B) by adding at the end the following:
    ``(2)(A) A bankruptcy petition preparer may not offer a potential 
bankruptcy debtor any legal advice, including any legal advice 
described in subparagraph (B).
    ``(B) The legal advice referred to in subparagraph (A) includes 
advising the debtor--
            ``(i) whether--
                    ``(I) to file a petition under this title; or
                    ``(II) commencing a case under chapter 7, 11, 12, 
                or 13 is appropriate;
            ``(ii) whether the debtor's debts will be eliminated or 
        discharged in a case under this title;
            ``(iii) whether the debtor will be able to retain the 
        debtor's home, car, or other property after commencing a case 
        under this title;
            ``(iv) concerning--
                    ``(I) the tax consequences of a case brought under 
                this title; or
                    ``(II) the dischargeability of tax claims;
            ``(v) whether the debtor may or should promise to repay 
        debts to a creditor or enter into a reaffirmation agreement 
        with a creditor to reaffirm a debt;
            ``(vi) concerning how to characterize the nature of the 
        debtor's interests in property or the debtor's debts; or
            ``(vii) concerning bankruptcy procedures and rights.'';
            (6) in subsection (f)--
                    (A) by striking ``(f)(1)'' and inserting ``(f)''; 
                and
                    (B) by striking paragraph (2);
            (7) in subsection (g)--
                    (A) by striking ``(g)(1)'' and inserting ``(g)''; 
                and
                    (B) by striking paragraph (2);
            (8) in subsection (h)--
                    (A) by redesignating paragraphs (1) through (4) as 
                paragraphs (2) through (5), respectively;
                    (B) by inserting before paragraph (2), as so 
                redesignated, the following:
    ``(h)(1) The Supreme Court may promulgate rules under section 2075 
of title 28, or the Judicial Conference of the United States may 
prescribe guidelines, for setting a maximum allowable fee chargeable by 
a bankruptcy petition preparer. A bankruptcy petition preparer shall 
notify the debtor of any such maximum amount before preparing any 
document for filing for a debtor or accepting any fee from the 
debtor.'';
                    (C) in paragraph (2), as redesignated by 
                subparagraph (A) of this paragraph--
                            (i) by striking ``Within 10 days after the 
                        date of filing a petition, a bankruptcy 
                        petition preparer shall file a'' and inserting 
                        ``A'';
                            (ii) by inserting ``by the bankruptcy 
                        petition preparer shall be filed together with 
                        the petition,'' after ``perjury''; and
                            (iii) by adding at the end the following: 
                        ``If rules or guidelines setting a maximum fee 
                        for services have been promulgated or 
                        prescribed under paragraph (1), the declaration 
                        under this paragraph shall include a 
                        certification that the bankruptcy petition 
                        preparer complied with the notification 
                        requirement under paragraph (1).'';
                    (D) by striking paragraph (3), as redesignated by 
                subparagraph (A) of this paragraph, and inserting the 
                following:
            ``(3)(A) The court shall disallow and order the immediate 
        turnover to the bankruptcy trustee any fee referred to in 
        paragraph (2) found to be in excess of the value of any 
        services--
                    ``(i) rendered by the preparer during the 12-month 
                period immediately preceding the date of filing of the 
                petition; or
                    ``(ii) found to be in violation of any rule or 
                guideline promulgated or prescribed under paragraph 
                (1).
            ``(B) All fees charged by a bankruptcy petition preparer 
        may be forfeited in any case in which the bankruptcy petition 
        preparer fails to comply with this subsection or subsection 
        (b), (c), (d), (e), (f), or (g).
            ``(C) An individual may exempt any funds recovered under 
        this paragraph under section 522(b).''; and
                    (E) in paragraph (4), as redesignated by 
                subparagraph (A) of this paragraph, by striking ``or 
                the United States trustee'' and inserting ``the United 
                States trustee, or the court, on the initiative of the 
                court,'';
            (9) in subsection (i)(1), by striking the matter preceding 
        subparagraph (A) and inserting the following:
    ``(i) If a bankruptcy petition preparer violates this section or 
commits any act that the court finds to be fraudulent, unfair, or 
deceptive, on motion of the debtor, trustee, or United States trustee, 
and after the court holds a hearing with respect to that violation or 
act, the court shall order the bankruptcy petition preparer to pay to 
the debtor--'';
            (10) in subsection (j)--
                    (A) in paragraph (2)--
                            (i) in subparagraph (A)(i)(I), by striking 
                        ``a violation of which subjects a person to 
                        criminal penalty'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``or has not paid a 
                                penalty'' and inserting ``has not paid 
                                a penalty''; and
                                    (II) by inserting ``or failed to 
                                disgorge all fees ordered by the 
                                court'' after ``a penalty imposed under 
                                this section,'';
                    (B) by redesignating paragraph (3) as paragraph 
                (4); and
                    (C) by inserting after paragraph (2) the following:
    ``(3) The court, as part of its contempt power, may enjoin a 
bankruptcy petition preparer that has failed to comply with a previous 
order issued under this section. The injunction under this paragraph 
may be issued upon motion of the court, the trustee, or the United 
States trustee.''; and
            (11) by adding at the end the following:
    ``(l)(1) A bankruptcy petition preparer who fails to comply with 
any provision of subsection (b), (c), (d), (e), (f), (g), or (h) may be 
fined not more than $500 for each such failure.
    ``(2) The court shall triple the amount of a fine assessed under 
paragraph (1) in any case in which the court finds that a bankruptcy 
petition preparer--
            ``(A) advised the debtor to exclude assets or income that 
        should have been included on applicable schedules;
            ``(B) advised the debtor to use a false Social Security 
        account number;
            ``(C) failed to inform the debtor that the debtor was 
        filing for relief under this title; or
            ``(D) prepared a document for filing in a manner that 
        failed to disclose the identity of the preparer.
    ``(3) The debtor, the trustee, a creditor, or the United States 
trustee may file a motion for an order imposing a fine on the 
bankruptcy petition preparer for each violation of this section.
    ``(4) All fines imposed under this section shall be paid to the 
United States trustee, who shall deposit an amount equal to such fines 
in a special account of the United States Trustee System Fund referred 
to in section 586(e)(2) of title 28. Amounts deposited under this 
paragraph shall be available to fund the enforcement of this section on 
a national basis.''.

SEC. 222. SENSE OF CONGRESS.

    It is the sense of Congress that States should develop curricula 
relating to the subject of personal finance, designed for use in 
elementary and secondary schools.

SEC. 223. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED STATES CODE.

    (a) In General.--Section 507(a) of title 11, United States Code, as 
amended by section 212 of this Act, is amended by inserting after 
paragraph (9) the following:
            ``(10) Tenth, allowed claims for death or personal injuries 
        resulting from the operation of a motor vehicle or vessel if 
        such operation was unlawful because the debtor was intoxicated 
        from using alcohol, a drug, or another substance.''.
    (b) Vessels.--Section 523(a)(8) of title 11, United States Code, is 
amended by inserting ``or vessel'' after ``vehicle''.

SEC. 224. PROTECTION OF RETIREMENT SAVINGS IN BANKRUPTCY.

    (a) In General.--Section 522 of title 11, United States Code, as 
amended by section 215 of this Act, is amended--
            (1) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) by striking ``(2)(A) any property'' and 
                        inserting:
    ``(3) Property listed in this paragraph is--
            ``(A) any property'';
                            (ii) in subparagraph (A), by striking 
                        ``and'' at the end;
                            (iii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; and''; and
                            (iv) by adding at the end the following:
            ``(C) retirement funds to the extent that those funds are 
        in a fund or account that is exempt from taxation under section 
        401, 403, 408, 408A, 414, 457, or 501(a) of the Internal 
        Revenue Code of 1986.'';
                    (B) by striking paragraph (1) and inserting:
    ``(2) Property listed in this paragraph is property that is 
specified under subsection (d), unless the State law that is applicable 
to the debtor under paragraph (3)(A) specifically does not so 
authorize.'';
                    (C) in the matter preceding paragraph (2)--
                            (i) by striking ``(b)'' and inserting 
                        ``(b)(1)'';
                            (ii) by striking ``paragraph (2)'' both 
                        places it appears and inserting ``paragraph 
                        (3)'';
                            (iii) by striking ``paragraph (1)'' each 
                        place it appears and inserting ``paragraph 
                        (2)''; and
                            (iv) by striking ``Such property is--''; 
                        and
                    (D) by adding at the end of the subsection the 
                following:
    ``(4) For purposes of paragraph (3)(C) and subsection (d)(12), the 
following shall apply:
            ``(A) If the retirement funds are in a retirement fund that 
        has received a favorable determination pursuant to section 7805 
        of the Internal Revenue Code of 1986, and that determination is 
        in effect as of the date of the commencement of the case under 
        section 301, 302, or 303 of this title, those funds shall be 
        presumed to be exempt from the estate.
            ``(B) If the retirement funds are in a retirement fund that 
        has not received a favorable determination pursuant to such 
        section 7805, those funds are exempt from the estate if the 
        debtor demonstrates that--
                    ``(i) no prior determination to the contrary has 
                been made by a court or the Internal Revenue Service; 
                and
                    ``(ii)(I) the retirement fund is in substantial 
                compliance with the applicable requirements of the 
                Internal Revenue Code of 1986; or
                    ``(II) the retirement fund fails to be in 
                substantial compliance with the applicable requirements 
                of the Internal Revenue Code of 1986 and the debtor is 
                not materially responsible for that failure.
            ``(C) A direct transfer of retirement funds from 1 fund or 
        account that is exempt from taxation under section 401, 403, 
        408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 
        1986, pursuant to section 401(a)(31) of the Internal Revenue 
        Code of 1986, or otherwise, shall not cease to qualify for 
        exemption under paragraph (3)(C) or subsection (d)(12) by 
        reason of that direct transfer.
            ``(D)(i) Any distribution that qualifies as an eligible 
        rollover distribution within the meaning of section 402(c) of 
        the Internal Revenue Code of 1986 or that is described in 
        clause (ii) shall not cease to qualify for exemption under 
        paragraph (3)(C) or subsection (d)(12) by reason of that 
        distribution.
            ``(ii) A distribution described in this clause is an amount 
        that--
                    ``(I) has been distributed from a fund or account 
                that is exempt from taxation under section 401, 403, 
                408, 408A, 414, 457, or 501(a) of the Internal Revenue 
                Code of 1986; and
                    ``(II) to the extent allowed by law, is deposited 
                in such a fund or account not later than 60 days after 
                the distribution of that amount.''; and
            (2) in subsection (d)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``subsection (b)(1)'' and inserting 
                ``subsection (b)(2)''; and
                    (B) by adding at the end the following:
    ``(12) Retirement funds to the extent that those funds are in a 
fund or account that is exempt from taxation under section 401, 403, 
408, 408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986.''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, as amended by section 214 of this Act, is amended--
            (1) in paragraph (18), by striking ``or'' at the end;
            (2) in paragraph (19), by striking the period and inserting 
        ``; or'';
            (3) by inserting after paragraph (19) the following:
            ``(20) under subsection (a), of withholding of income from 
        a debtor's wages and collection of amounts withheld, pursuant 
        to the debtor's agreement authorizing that withholding and 
        collection for the benefit of a pension, profit-sharing, stock 
        bonus, or other plan established under section 401, 403, 408, 
        408A, 414, 457, or 501(a) of the Internal Revenue Code of 1986 
        that is sponsored by the employer of the debtor, or an 
        affiliate, successor, or predecessor of such employer--
                    ``(A) to the extent that the amounts withheld and 
                collected are used solely for payments relating to a 
                loan from a plan that satisfies the requirements of 
                section 408(b)(1) of the Employee Retirement Income 
                Security Act of 1974 or is subject to section 72(p) of 
                the Internal Revenue Code of 1986; or
                    ``(B) in the case of a loan from a thrift savings 
                plan described in subchapter III of title 5, that 
                satisfies the requirements of section 8433(g) of such 
                title;''; and
            (4) by adding at the end of the flush material at the end 
        of the subsection, the following: ``Nothing in paragraph (20) 
        may be construed to provide that any loan made under a 
        governmental plan under section 414(d), or a contract or 
        account under section 403(b), of the Internal Revenue Code of 
        1986 constitutes a claim or a debt under this title.''.
    (c) Exceptions to Discharge.--Section 523(a) of title 11, United 
States Code, is amended by adding at the end the following:
            ``(18) owed to a pension, profit-sharing, stock bonus, or 
        other plan established under section 401, 403, 408, 408A, 414, 
        457, or 501(c) of the Internal Revenue Code of 1986, pursuant 
        to--
                    ``(A) a loan permitted under section 408(b)(1) of 
                the Employee Retirement Income Security Act of 1974, or 
                subject to section 72(p) of the Internal Revenue Code 
                of 1986; or
                    ``(B) a loan from the thrift savings plan described 
                in subchapter III of title 5, that satisfies the 
                requirements of section 8433(g) of such title.
        Nothing in paragraph (19) may be construed to provide that any 
        loan made under a governmental plan under section 414(d), or a 
        contract or account under section 403(b), of the Internal 
        Revenue Code of 1986 constitutes a claim or a debt under this 
        title.''
    (d) Plan Contents.--Section 1322 of title 11, United States Code, 
is amended by adding at the end the following:
    ``(f) A plan may not materially alter the terms of a loan described 
in section 362(b)(20).''.

SEC. 225. PROTECTION OF EDUCATION SAVINGS.

    (a) Exclusions.--Section 541 of title 11, United States Code, as 
amended by section 903, is amended--
            (1) in subsection (b)--
                    (A) by redesignating paragraph (6) as paragraph 
                (8); and
                    (B) by inserting after paragraph (5) the following:
            ``(6) funds placed in an education individual retirement 
        account (as defined in section 530(b)(1) of the Internal 
        Revenue Code of 1986) not later than 365 days before the date 
        of filing of the petition, but--
                    ``(A) only if the designated beneficiary of such 
                account was a son, daughter, stepson, stepdaughter, 
                grandchild, or step-grandchild of the debtor for the 
                taxable year for which funds were placed in such 
                account;
                    ``(B) only to the extent that such funds--
                            ``(i) are not pledged or promised to any 
                        entity in connection with any extension of 
                        credit; and
                            ``(ii) are not excess contributions (as 
                        described in section 4973(e) of the Internal 
                        Revenue Code of 1986); and
                    ``(C) in the case of funds placed in all such 
                accounts having the same designated beneficiary not 
                earlier than 720 days nor later than 365 days before 
                such date, only so much of such funds as does not 
                exceed $5,000;
            ``(7) funds used to purchase a tuition credit or 
        certificate or contributed to an account in accordance with 
        section 529(b)(1)(A) of the Internal Revenue Code of 1986 under 
        a qualified State tuition program (as defined in section 
        529(b)(1) of such Code) not later than 365 days before the date 
        of filing of the petition, but--
                    ``(A) only if the designated beneficiary of the 
                amounts paid or contributed to such tuition program was 
                a son, daughter, stepson, stepdaughter, grandchild, or 
                step-grandchild of the debtor for the taxable year for 
                which funds were paid or contributed;
                    ``(B) with respect to the aggregate amount paid or 
                contributed to such program having the same designated 
                beneficiary, only so much of such amount as does not 
                exceed the total contributions permitted under section 
                529(b)(7) of such Code with respect to such 
                beneficiary, as adjusted beginning on the date of the 
                filing of the petition by the annual increase or 
                decrease (rounded to the nearest tenth of 1 percent) in 
                the education expenditure category of the Consumer 
                Price Index prepared by the Department of Labor; and
                    ``(C) in the case of funds paid or contributed to 
                such program having the same designated beneficiary not 
                earlier than 720 days nor later than 365 days before 
                such date, only so much of such funds as does not 
                exceed $5,000; or''; and
            (2) by adding at the end the following:
    ``(g) In determining whether any of the relationships specified in 
paragraph (6)(A) or (7)(A) of subsection (b) exists, a legally adopted 
child of an individual (and a child who is a member of an individual's 
household, if placed with such individual by an authorized placement 
agency for legal adoption by such individual), or a foster child of an 
individual (if such child has as the child's principal place of abode 
the home of the debtor and is a member of the debtor's household) shall 
be treated as a child of such individual by blood.''.
    (b) Debtor's Duties.--Section 521 of title 11, United States Code, 
as amended by sections 105(d), 304(c)(1), 305(2), 315(b), and 316 of 
this Act, is amended by adding at the end the following:
    ``(k) In addition to meeting the requirements under subsection (a), 
a debtor shall file with the court a record of any interest that a 
debtor has in an education individual retirement account (as defined in 
section 530(b)(1) of the Internal Revenue Code of 1986) or under a 
qualified State tuition program (as defined in section 529(b)(1) of 
such Code).''.

                TITLE III--DISCOURAGING BANKRUPTCY ABUSE

SEC. 301. REINFORCEMENT OF THE FRESH START.

    Section 523(a)(17) of title 11, United States Code, is amended--
            (1) by striking ``by a court'' and inserting ``on a 
        prisoner by any court'',
            (2) by striking ``section 1915(b) or (f)'' and inserting 
        ``subsection (b) or (f)(2) of section 1915'', and
            (3) by inserting ``(or a similar non-Federal law)'' after 
        ``title 28'' each place it appears.

SEC. 302. DISCOURAGING BAD FAITH REPEAT FILINGS.

    Section 362(c) of title 11, United States Code, is amended--
            (1) in paragraph (1), by striking ``and'' at the end;
            (2) in paragraph (2), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(3) if a single or joint case is filed by or against an 
        individual debtor under chapter 7, 11, or 13, and if a single 
        or joint case of the debtor was pending within the preceding 1-
        year period but was dismissed, other than a case refiled under 
        a chapter other than chapter 7 after dismissal under section 
        707(b)--
                    ``(A) the stay under subsection (a) with respect to 
                any action taken with respect to a debt or property 
                securing such debt or with respect to any lease will 
                terminate with respect to the debtor on the 30th day 
                after the filing of the later case;
                    ``(B) upon motion by a party in interest for 
                continuation of the automatic stay and upon notice and 
                a hearing, the court may extend the stay in particular 
                cases as to any or all creditors (subject to such 
                conditions or limitations as the court may then impose) 
                after notice and a hearing completed before the 
                expiration of the 30-day period only if the party in 
                interest demonstrates that the filing of the later case 
                is in good faith as to the creditors to be stayed; and
                    ``(C) for purposes of subparagraph (B), a case is 
                presumptively filed not in good faith (but such 
                presumption may be rebutted by clear and convincing 
                evidence to the contrary)--
                            ``(i) as to all creditors, if--
                                    ``(I) more than 1 previous case 
                                under any of chapter 7, 11, or 13 in 
                                which the individual was a debtor was 
                                pending within the preceding 1-year 
                                period;
                                    ``(II) a previous case under any of 
                                chapter 7, 11, or 13 in which the 
                                individual was a debtor was dismissed 
                                within such 1-year period, after the 
                                debtor failed to--
                                            ``(aa) file or amend the 
                                        petition or other documents as 
                                        required by this title or the 
                                        court without substantial 
                                        excuse (but mere inadvertence 
                                        or negligence shall not be a 
                                        substantial excuse unless the 
                                        dismissal was caused by the 
                                        negligence of the debtor's 
                                        attorney);
                                            ``(bb) provide adequate 
                                        protection as ordered by the 
                                        court; or
                                            ``(cc) perform the terms of 
                                        a plan confirmed by the court; 
                                        or
                                    ``(III) there has not been a 
                                substantial change in the financial or 
                                personal affairs of the debtor since 
                                the dismissal of the next most previous 
                                case under chapter 7, 11, or 13 or any 
                                other reason to conclude that the later 
                                case will be concluded--
                                            ``(aa) if a case under 
                                        chapter 7, with a discharge; or
                                            ``(bb) if a case under 
                                        chapter 11 or 13, with a 
                                        confirmed plan which will be 
                                        fully performed; and
                            ``(ii) as to any creditor that commenced an 
                        action under subsection (d) in a previous case 
                        in which the individual was a debtor if, as of 
                        the date of dismissal of such case, that action 
                        was still pending or had been resolved by 
                        terminating, conditioning, or limiting the stay 
                        as to actions of such creditor; and
            ``(4)(A)(i) if a single or joint case is filed by or 
        against an individual debtor under this title, and if 2 or more 
        single or joint cases of the debtor were pending within the 
        previous year but were dismissed, other than a case refiled 
        under section 707(b), the stay under subsection (a) shall not 
        go into effect upon the filing of the later case; and
            ``(ii) on request of a party in interest, the court shall 
        promptly enter an order confirming that no stay is in effect;
            ``(B) if, within 30 days after the filing of the later 
        case, a party in interest requests the court may order the stay 
        to take effect in the case as to any or all creditors (subject 
        to such conditions or limitations as the court may impose), 
        after notice and hearing, only if the party in interest 
        demonstrates that the filing of the later case is in good faith 
        as to the creditors to be stayed;
            ``(C) a stay imposed under subparagraph (B) shall be 
        effective on the date of entry of the order allowing the stay 
        to go into effect; and
            ``(D) for purposes of subparagraph (B), a case is 
        presumptively not filed in good faith (but such presumption may 
        be rebutted by clear and convincing evidence to the contrary)--
                    ``(i) as to all creditors if--
                            ``(I) 2 or more previous cases under this 
                        title in which the individual was a debtor were 
                        pending within the 1-year period;
                            ``(II) a previous case under this title in 
                        which the individual was a debtor was dismissed 
                        within the time period stated in this paragraph 
                        after the debtor failed to file or amend the 
                        petition or other documents as required by this 
                        title or the court without substantial excuse 
                        (but mere inadvertence or negligence shall not 
                        be substantial excuse unless the dismissal was 
                        caused by the negligence of the debtor's 
                        attorney), failed to pay adequate protection as 
                        ordered by the court, or failed to perform the 
                        terms of a plan confirmed by the court; or
                            ``(III) there has not been a substantial 
                        change in the financial or personal affairs of 
                        the debtor since the dismissal of the next most 
                        previous case under this title, or any other 
                        reason to conclude that the later case will not 
                        be concluded, if a case under chapter 7, with a 
                        discharge, and if a case under chapter 11 or 
                        13, with a confirmed plan that will be fully 
                        performed; or
                    ``(ii) as to any creditor that commenced an action 
                under subsection (d) in a previous case in which the 
                individual was a debtor if, as of the date of dismissal 
                of such case, such action was still pending or had been 
                resolved by terminating, conditioning, or limiting the 
                stay as to action of such creditor.''.

SEC. 303. CURBING ABUSIVE FILINGS.

    (a) In General.--Section 362(d) of title 11, United States Code, is 
amended--
            (1) in paragraph (2), by striking ``or'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(4) with respect to a stay of an act against real 
        property under subsection (a), by a creditor whose claim is 
        secured by an interest in such real estate, if the court finds 
        that the filing of the bankruptcy petition was part of a scheme 
        to delay, hinder, and defraud creditors that involved either--
                    ``(A) transfer of all or part ownership of, or 
                other interest in, the real property without the 
                consent of the secured creditor or court approval; or
                    ``(B) multiple bankruptcy filings affecting the 
                real property.

If recorded in compliance with applicable State laws governing notices 
of interests or liens in real property, an order entered under this 
subsection shall be binding in any other case under this title 
purporting to affect the real property filed not later than 2 years 
after that recording, except that a debtor in a subsequent case may 
move for relief from such order based upon changed circumstances or for 
good cause shown, after notice and a hearing.''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, as amended by section 224 of this Act, is amended--
            (1) in paragraph (19), by striking ``or'' at the end;
            (2) in paragraph (20), by striking the period at the end; 
        and
            (3) by inserting after paragraph (20) the following:
            ``(21) under subsection (a), of any act to enforce any lien 
        against or security interest in real property following the 
        entry of an order under section 362(d)(4) as to that property 
        in any prior bankruptcy case for a period of 2 years after 
        entry of such an order, except that the debtor, in a subsequent 
        case, may move the court for relief from such order based upon 
        changed circumstances or for other good cause shown, after 
        notice and a hearing; or
            ``(22) under subsection (a), of any act to enforce any lien 
        against or security interest in real property--
                    ``(A) if the debtor is ineligible under section 
                109(g) to be a debtor in a bankruptcy case; or
                    ``(B) if the bankruptcy case was filed in violation 
                of a bankruptcy court order in a prior bankruptcy case 
                prohibiting the debtor from being a debtor in another 
                bankruptcy case.''.
    (c) Modification of a Restriction Relating to Waivers.--Section 
522(e) of title 11, United States Code, is amended--
            (1) in the first sentence, by striking ``subsection (b) of 
        this section'' and inserting ``subsection (b), other than under 
        paragraph (3)(C) of that subsection''; and
            (2) in the second sentence--
                    (A) by inserting ``(other than property described 
                in subsection (b)(3)(C))'' after ``property'' each 
                place it appears; and
                    (B) by inserting ``(other than a transfer of 
                property described in subsection (b)(3)(C))'' after 
                ``transfer'' each place it appears.

SEC. 304. DEBTOR RETENTION OF PERSONAL PROPERTY SECURITY.

    Title 11, United States Code, is amended--
            (1) in section 521(a), as so redesignated by section 106(d) 
        of this Act--
                    (A) in paragraph (4), by striking ``and'' at the 
                end;
                    (B) in paragraph (5), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(6) in an individual case under chapter 7, not retain 
        possession of personal property as to which a creditor has an 
        allowed claim for the purchase price secured in whole or in 
        part by an interest in that personal property unless, in the 
        case of an individual debtor, the debtor within 45 days after 
        the first meeting of creditors under section 341(a)--
                    ``(A) enters into an agreement with the creditor 
                under section 524(c) with respect to the claim secured 
                by such property; or
                    ``(B) redeems such property from the security 
                interest under section 722.''; and
                    (D) by adding at the end the following:
    ``(c) For purposes of subsection (a)(6), if the debtor fails to so 
act within the 45-day period specified in subsection (a)(6), the 
personal property affected shall no longer be property of the estate, 
and the creditor may take whatever action as to such property as is 
permitted by applicable nonbankruptcy law, unless the court determines 
on the motion of the trustee, and after notice and a hearing, that such 
property is of consequential value or benefit to the estate.''; and
            (2) in section 722, by inserting ``in full at the time of 
        redemption'' before the period at the end.

SEC. 305. RELIEF FROM THE AUTOMATIC STAY WHEN THE DEBTOR DOES NOT 
              COMPLETE INTENDED SURRENDER OF CONSUMER DEBT COLLATERAL.

    Title 11, United States Code, is amended--
            (1) in section 362--
                    (A) in subsection (c), by striking ``(e), and (f)'' 
                and inserting ``(e), (f), and (h)''; and
                    (B) by redesignating subsection (h), as amended by 
                section 227 of this Act, as subsection (j) and by 
                inserting after subsection (g) the following:
    ``(h)(1) Subject to paragraph (2), in an individual case under 
chapter 7, 11, or 13 the stay provided by subsection (a) is terminated 
with respect to property of the estate securing in whole or in part a 
claim, or subject to an unexpired lease, if the debtor fails within the 
applicable period of time set by section 521(a)(2) to--
            ``(A) file timely any statement of intention required under 
        section 521(a)(2) with respect to that property or to indicate 
        therein that the debtor--
                    ``(i) will either surrender the property or retain 
                the property; and
                    ``(ii) if retaining the property, will, as 
                applicable--
                            ``(I) redeem the property under section 
                        722;
                            ``(II) reaffirm the debt the property 
                        secures under section 524(c); or
                            ``(III) assume the unexpired lease under 
                        section 365(p) if the trustee does not do so; 
                        or
            ``(B) take timely the action specified in that statement of 
        intention, as the statement may be amended before expiration of 
        the period for taking action, unless the statement of intention 
        specifies reaffirmation and the creditor refuses to reaffirm on 
        the original contract terms.
    ``(2) Paragraph (1) shall not apply if the court determines on the 
motion of the trustee, and after notice and a hearing, that such 
property is of consequential value or benefit to the estate.''; and
            (2) in section 521, as amended by section 304 of this Act--
                    (A) in subsection (a)(2), as redesignated by 
                section 106(d) of this Act--
                            (i) by striking ``consumer'';
                            (ii) in subparagraph (B)--
                                    (I) by striking ``forty-five days 
                                after the filing of a notice of intent 
                                under this section'' and inserting ``30 
                                days after the first date set for the 
                                meeting of creditors under section 
                                341(a)''; and
                                    (II) by striking ``forty-five day 
                                period'' and inserting ``30-day 
                                period''; and
                            (iii) in subparagraph (C), by inserting 
                        ``except as provided in section 362(h)'' before 
                        the semicolon; and
                    (B) by adding at the end the following:
    ``(d) If the debtor fails timely to take the action specified in 
subsection (a)(6), or in paragraph (1) or (2) of section 362(h), with 
respect to property which a lessor or bailor owns and has leased, 
rented, or bailed to the debtor or as to which a creditor holds a 
security interest not otherwise voidable under section 522(f), 544, 
545, 547, 548, or 549, nothing in this title shall prevent or limit the 
operation of a provision in the underlying lease or agreement that has 
the effect of placing the debtor in default under that lease or 
agreement by reason of the occurrence, pendency, or existence of a 
proceeding under this title or the insolvency of the debtor. Nothing in 
this subsection shall be deemed to justify limiting such a provision in 
any other circumstance.''.

SEC. 306. GIVING SECURED CREDITORS FAIR TREATMENT IN CHAPTER 13.

    (a) In General.--Section 1325(a)(5)(B)(i) of title 11, United 
States Code, is amended to read as follows:
                    ``(i) the plan provides that--
                            ``(I) the holder of such claim retain the 
                        lien securing such claim until the earlier of--
                                    ``(aa) the payment of the 
                                underlying debt determined under 
                                nonbankruptcy law; or
                                    ``(bb) discharge under section 
                                1328; and
                            ``(II) if the case under this chapter is 
                        dismissed or converted without completion of 
                        the plan, such lien shall also be retained by 
                        such holder to the extent recognized by 
                        applicable nonbankruptcy law; and''.
    (b) Restoring the Foundation for Secured Credit.--Section 1325(a) 
of title 11, United States Code, is amended by adding at the end the 
following flush sentence:
``For purposes of paragraph (5), section 506 shall not apply to a claim 
described in that paragraph if the debt that is the subject of the 
claim was incurred within the 5-year period preceding the filing of the 
petition and the collateral for that debt consists of a motor vehicle 
(as defined in section 30102 of title 49) acquired for the personal use 
of the debtor, or if collateral for that debt consists of any other 
thing of value, if the debt was incurred during the 6-month period 
preceding that filing.''.
    (c) Definitions.--Section 101 of title 11, United States Code, as 
amended by section 211 of this Act, is amended--
            (1) by inserting after paragraph (13) the following:
            ``(13A) `debtor's principal residence'--
                    ``(A) means a residential structure, including 
                incidental property, without regard to whether that 
                structure is attached to real property; and
                    ``(B) includes an individual condominium or 
                cooperative unit;''; and
            (2) by inserting after paragraph (27), the following:
            ``(27A) `incidental property' means, with respect to a 
        debtor's principal residence--
                    ``(A) property commonly conveyed with a principal 
                residence in the area where the real estate is located;
                    ``(B) all easements, rights, appurtenances, 
                fixtures, rents, royalties, mineral rights, oil or gas 
                rights or profits, water rights, escrow funds, or 
                insurance proceeds; and
                    ``(C) all replacements or additions;''.

SEC. 307. EXEMPTIONS.

    Section 522(b)(3)(A) of title 11, United States Code, as so 
designated by section 224 of this Act, is amended--
            (1) by striking ``180'' and inserting ``730''; and
            (2) by striking ``, or for a longer portion of such 180-day 
        period than in any other place''.

SEC. 308. RESIDENCY REQUIREMENT FOR HOMESTEAD EXEMPTION.

    Section 522 of title 11, United States Code, as amended by section 
307 of this Act, is amended--
            (1) in subsection (b)(3)(A), by inserting ``subject to 
        subsection (n),'' before ``any property''; and
            (2) by adding at the end the following:
    ``(n) For purposes of subsection (b)(3)(A), and notwithstanding 
subsection (a), the value of an interest in--
            ``(1) real or personal property that the debtor or a 
        dependent of the debtor uses as a residence;
            ``(2) a cooperative that owns property that the debtor or a 
        dependent of the debtor uses as a residence; or
            ``(3) a burial plot for the debtor or a dependent of the 
        debtor;

shall be reduced to the extent such value is attributable to any 
portion of any property that the debtor disposed of in the 730-day 
period ending on the date of the filing of the petition, with the 
intent to hinder, delay, or defraud a creditor and that the debtor 
could not exempt, or that portion that the debtor could not exempt, 
under subsection (b) if on such date the debtor had held the property 
so disposed of.''.

SEC. 309. PROTECTING SECURED CREDITORS IN CHAPTER 13 CASES.

    (a) Stopping Abusive Conversions From Chapter 13.--Section 
348(f)(1) of title 11, United States Code, is amended--
            (1) in subparagraph (A), by striking ``and'' at the end;
            (2) in subparagraph (B)--
                    (A) by striking ``in the converted case, with 
                allowed secured claims'' and inserting ``only in a case 
                converted to chapter 11 or 12 but not in a case 
                converted to chapter 7, with allowed secured claims in 
                cases under chapters 11 and 12''; and
                    (B) by striking the period and inserting ``; and''; 
                and
            (3) by adding at the end the following:
            ``(C) with respect to cases converted from chapter 13--
                    ``(i) the claim of any creditor holding security as 
                of the date of the petition shall continue to be 
                secured by that security unless the full amount of such 
                claim determined under applicable nonbankruptcy law has 
                been paid in full as of the date of conversion, 
                notwithstanding any valuation or determination of the 
                amount of an allowed secured claim made for the 
                purposes of the chapter 13 proceeding; and
                    ``(ii) unless a prebankruptcy default has been 
                fully cured under the plan at the time of conversion, 
                in any proceeding under this title or otherwise, the 
                default shall have the effect given under applicable 
                nonbankruptcy law.''.
    (b) Giving Debtors the Ability To Keep Leased Personal Property by 
Assumption.--Section 365 of title 11, United States Code, is amended by 
adding at the end the following:
    ``(p)(1) If a lease of personal property is rejected or not timely 
assumed by the trustee under subsection (d), the leased property is no 
longer property of the estate and the stay under section 362(a) is 
automatically terminated.
    ``(2)(A) In the case of an individual under chapter 7, the debtor 
may notify the creditor in writing that the debtor desires to assume 
the lease. Upon being so notified, the creditor may, at its option, 
notify the debtor that it is willing to have the lease assumed by the 
debtor and may condition such assumption on cure of any outstanding 
default on terms set by the contract.
    ``(B) If within 30 days after notice is provided under subparagraph 
(A), the debtor notifies the lessor in writing that the lease is 
assumed, the liability under the lease will be assumed by the debtor 
and not by the estate.
    ``(C) The stay under section 362 and the injunction under section 
524(a)(2) shall not be violated by notification of the debtor and 
negotiation of cure under this subsection.
    ``(3) In a case under chapter 11 in which the debtor is an 
individual and in a case under chapter 13, if the debtor is the lessee 
with respect to personal property and the lease is not assumed in the 
plan confirmed by the court, the lease is deemed rejected as of the 
conclusion of the hearing on confirmation. If the lease is rejected, 
the stay under section 362 and any stay under section 1301 is 
automatically terminated with respect to the property subject to the 
lease.''.
    (c) Adequate Protection of Lessors and Purchase Money Secured 
Creditors.--
            (1) Confirmation of plan.--Section 1325(a)(5)(B) of title 
        11, United States Code, is amended--
                    (A) in clause (i), by striking ``and'' at the end;
                    (B) in clause (ii), by striking ``or'' at the end 
                and inserting ``and''; and
                    (C) by adding at the end the following:
                            ``(iii) if--
                                    ``(I) property to be distributed 
                                pursuant to this subsection is in the 
                                form of periodic payments, such 
                                payments shall be in equal monthly 
                                amounts; and
                                    ``(II) the holder of the claim is 
                                secured by personal property the amount 
                                of such payments shall not be less than 
                                an amount sufficient to provide to the 
                                holder of such claim adequate 
                                protection during the period of the 
                                plan; or''.
            (2) Payments.--Section 1326(a) of title 11, United States 
        Code, is amended to read as follows:
    ``(a)(1) Unless the court orders otherwise, the debtor shall--
            ``(A) commence making the payments proposed by a plan 
        within 30 days after the plan is filed; or
            ``(B) if no plan is filed then as specified in the proof of 
        claim, within 30 days after the order for relief or within 15 
        days after the plan is filed, whichever is earlier.
    ``(2) A payment made under this section shall be retained by the 
trustee until confirmation, denial of confirmation, or paid by the 
trustee as adequate protection payments in accordance with paragraph 
(3). If a plan is confirmed, the trustee shall distribute any such 
payment in accordance with the plan as soon as is practicable. If a 
plan is not confirmed, the trustee shall return any such payments not 
previously paid and not yet due and owing to creditors pursuant to 
paragraph (3) to the debtor, after deducting any unpaid claim allowed 
under section 503(b).
    ``(3)(A) As soon as is practicable, and not later than 40 days 
after the filing of the case, the trustee shall--
            ``(i) pay from payments made under this section the 
        adequate protection payments proposed in the plan; or
            ``(ii) if no plan is filed then, according to the terms of 
        the proof of claim.
    ``(B) The court may, upon notice and a hearing, modify, increase, 
or reduce the payments required under this paragraph pending 
confirmation of a plan.''.

SEC. 310. LIMITATION ON LUXURY GOODS.

    Section 523(a)(2)(C) of title 11, United States Code, is amended to 
read as follows:
            ``(C)(i) for purposes of subparagraph (A)--
                    ``(I) consumer debts owed to a single creditor and 
                aggregating more than $250 for luxury goods or services 
                incurred by an individual debtor on or within 90 days 
                before the order for relief under this title are 
                presumed to be nondischargeable; and
                    ``(II) cash advances aggregating more than $750 
                that are extensions of consumer credit under an open 
                end credit plan obtained by an individual debtor on or 
                within 70 days before the order for relief under this 
                title, are presumed to be nondischargeable; and
            ``(ii) for purposes of this subparagraph--
                    ``(I) the term `extension of credit under an open 
                end credit plan' means an extension of credit under an 
                open end credit plan, within the meaning of the 
                Consumer Credit Protection Act (15 U.S.C. 1601 et 
                seq.);
                    ``(II) the term `open end credit plan' has the 
                meaning given that term under section 103 of Consumer 
                Credit Protection Act (15 U.S.C. 1602); and
                    ``(III) the term `luxury goods or services' does 
                not include goods or services reasonably necessary for 
                the support or maintenance of the debtor or a dependent 
                of the debtor.''.

SEC. 311. AUTOMATIC STAY.

    Section 362(b) of title 11, United States Code, as amended by 
section 303(b) of this Act, is amended--
            (1) in paragraph (21), by striking ``or'' at the end;
            (2) in paragraph (22), by striking the period at the end 
        and inserting a semicolon; and
            (3) by inserting after paragraph (22) the following:
            ``(23) under subsection (a)(3), of the continuation of any 
        eviction, unlawful detainer action, or similar proceeding by a 
        lessor against a debtor involving residential real property in 
        which the debtor resides as a tenant under a rental agreement;
            ``(24) under subsection (a)(3), of the commencement of any 
        eviction, unlawful detainer action, or similar proceeding by a 
        lessor against a debtor involving residential real property in 
        which the debtor resides as a tenant under a rental agreement 
        that has terminated under the lease agreement or applicable 
        State law; or
            ``(25) under subsection (a)(3), of eviction actions based 
        on endangerment to property or person or the use of illegal 
        drugs.''.

SEC. 312. EXTENSION OF PERIOD BETWEEN BANKRUPTCY DISCHARGES.

    Title 11, United States Code, is amended--
            (1) in section 727(a)(8), by striking ``six'' and inserting 
        ``8''; and
            (2) in section 1328, by inserting after subsection (e) the 
        following:
    ``(f) Notwithstanding subsections (a) and (b), the court shall not 
grant a discharge of all debts provided for by the plan or disallowed 
under section 502 if the debtor has received a discharge in any case 
filed under this title within 5 years before the order for relief under 
this chapter.''.

SEC. 313. DEFINITION OF HOUSEHOLD GOODS AND ANTIQUES.

    Section 522(f) of title 11, United States Code, is amended by 
adding at the end the following:
            ``(4)(A) Subject to subparagraph (B), for purposes of 
        paragraph (1)(B), the term `household goods' means--
                    ``(i) clothing;
                    ``(ii) furniture;
                    ``(iii) appliances;
                    ``(iv) 1 radio;
                    ``(v) 1 television;
                    ``(vi) 1 VCR;
                    ``(vii) linens;
                    ``(viii) china;
                    ``(ix) crockery;
                    ``(x) kitchenware;
                    ``(xi) educational materials and educational 
                equipment primarily for the use of minor dependent 
                children of the debtor, but only 1 personal computer 
                only if used primarily for the education or 
                entertainment of such minor children;
                    ``(xii) medical equipment and supplies;
                    ``(xiii) furniture exclusively for the use of minor 
                children, or elderly or disabled dependents of the 
                debtor; and
                    ``(xiv) personal effects (including wedding rings 
                and the toys and hobby equipment of minor dependent 
                children) of the debtor and the dependents of the 
                debtor.
            ``(B) The term `household goods' does not include--
                    ``(i) works of art (unless by or of the debtor or 
                the dependents of the debtor);
                    ``(ii) electronic entertainment equipment (except 1 
                television, 1 radio, and 1 VCR);
                    ``(iii) items acquired as antiques;
                    ``(iv) jewelry (except wedding rings); and
                    ``(v) a computer (except as otherwise provided for 
                in this section), motor vehicle (including a tractor or 
                lawn tractor), boat, or a motorized recreational 
                device, conveyance, vehicle, watercraft, or 
                aircraft.''.

SEC. 314. DEBT INCURRED TO PAY NONDISCHARGEABLE DEBTS.

    (a) In General.--Section 523(a) of title 11, United States Code, is 
amended by inserting after paragraph (14) the following:
            ``(14A)(A) incurred to pay a debt that is nondischargeable 
        by reason of section 727, 1141, 1228(a), 1228(b), or 1328(b), 
        or any other provision of this subsection, if the debtor 
        incurred the debt to pay such a nondischargeable debt with the 
        intent to discharge in bankruptcy the newly created debt; 
        except that
            ``(B) all debts incurred to pay nondischargeable debts 
        shall be presumed to be nondischargeable debts if incurred 
        within 70 days before the filing of the petition (except that, 
        in any case in which there is an allowed claim under section 
        502 for child support or spousal support entitled to priority 
        under section 507(a)(1) and that was filed in a timely manner, 
        debts that would otherwise be presumed to be nondischargeable 
        debts by reason of this subparagraph shall be treated as 
        dischargeable debts);''.
    (b) Discharge Under Chapter 13.--Section 1328(a) of title 11, 
United States Code, is amended by striking paragraphs (1) through (3) 
and inserting the following:
            ``(1) provided for under section 1322(b)(5);
            ``(2) of the kind specified in paragraph (2), (3), (4), 
        (7), or (8), of section 523(a);
            ``(3) for restitution, or a criminal fine, included in a 
        sentence on the debtor's conviction of a crime; or
            ``(4) for restitution, or damages, awarded in a civil 
        action against the debtor as a result of willful or malicious 
        injury by the debtor that caused personal injury to an 
        individual or the death of an individual.''.

SEC. 315. GIVING CREDITORS FAIR NOTICE IN CHAPTERS 7 AND 13 CASES.

    (a) Notice.--Section 342 of title 11, United States Code, is 
amended--
            (1) in subsection (c)--
                    (A) by inserting ``(1)'' after ``(c)''; and
                    (B) by striking ``, but the failure of such notice 
                to contain such information shall not invalidate the 
                legal effect of such notice''; and
            (2) by adding at the end the following:
    ``(d) At any time, a creditor, in a case of an individual debtor 
under chapter 7 or 13, may file with the court and serve on the debtor 
a notice of the address to be used to notify the creditor in that case. 
Five days after receipt of such notice, if the court or the debtor is 
required to give the creditor notice, such notice shall be given at 
that address.
    ``(e) An entity may file with the court a notice stating its 
address for notice in cases under chapters 7 and 13. After 30 days 
following the filing of such notice, any notice in any case filed under 
chapter 7 or 13 given by the court shall be to that address unless 
specific notice is given under subsection (d) with respect to a 
particular case.
    ``(f)(1) Notice given to a creditor other than as provided in this 
section shall not be effective notice until that notice has been 
brought to the attention of the creditor. If the creditor designates a 
person or department to be responsible for receiving notices concerning 
bankruptcy cases and establishes reasonable procedures so that 
bankruptcy notices received by the creditor are to be delivered to such 
department or person, notice shall not be considered to have been 
brought to the attention of the creditor until received by such person 
or department.
    ``(2) No sanction under section 362(h) or any other sanction that a 
court may impose on account of violations of the stay under section 
362(a) or failure to comply with section 542 or 543 may be imposed on 
any action of the creditor unless the action takes place after the 
creditor has received notice of the commencement of the case effective 
under this section.''.
    (b) Debtor's Duties.--Section 521 of title 11, United States Code, 
as amended by section 305 of this Act, is amended--
            (1) in subsection (a), by striking paragraph (1) and 
        inserting the following:
            ``(1) file--
                    ``(A) a list of creditors; and
                    ``(B) unless the court orders otherwise--
                            ``(i) a schedule of assets and liabilities;
                            ``(ii) a schedule of current income and 
                        current expenditures;
                            ``(iii) a statement of the debtor's 
                        financial affairs and, if applicable, a 
                        certificate--
                                    ``(I) of an attorney whose name is 
                                on the petition as the attorney for the 
                                debtor or any bankruptcy petition 
                                preparer signing the petition under 
                                section 110(b)(1) indicating that such 
                                attorney or bankruptcy petition 
                                preparer delivered to the debtor any 
                                notice required by section 342(b); or
                                    ``(II) if no attorney for the 
                                debtor is indicated and no bankruptcy 
                                petition preparer signed the petition, 
                                of the debtor that such notice was 
                                obtained and read by the debtor;
                            ``(iv) copies of all payment advices or 
                        other evidence of payment, if any, received by 
                        the debtor from any employer of the debtor in 
                        the period 60 days before the filing of the 
                        petition;
                            ``(v) a statement of the amount of 
                        projected monthly net income, itemized to show 
                        how the amount is calculated; and
                            ``(vi) a statement disclosing any 
                        reasonably anticipated increase in income or 
                        expenditures over the 12-month period following 
                        the date of filing''; and
            (2) by adding at the end the following:
    ``(e)(1) At any time, a creditor, in the case of an individual 
under chapter 7 or 13, may file with the court notice that the creditor 
requests the petition, schedules, and a statement of affairs filed by 
the debtor in the case and the court shall make those documents 
available to the creditor who request those documents.
    ``(2)(A) At any time, a creditor in a case under chapter 13 may 
file with the court notice that the creditor requests the plan filed by 
the debtor in the case.
    ``(B) The court shall make such plan available to the creditor who 
request such plan--
            ``(i) at a reasonable cost; and
            ``(ii) not later than 5 days after such request.
    ``(f) An individual debtor in a case under chapter 7, 11, or 13 
shall file with the court at the request of any party in interest--
            ``(1) at the time filed with the taxing authority, all tax 
        returns required under applicable law, including any schedules 
        or attachments, with respect to the period from the 
        commencement of the case until such time as the case is closed;
            ``(2) at the time filed with the taxing authority, all tax 
        returns required under applicable law, including any schedules 
        or attachments, that were not filed with the taxing authority 
        when the schedules under subsection (a)(1) were filed with 
        respect to the period that is 3 years before the order of 
        relief;
            ``(3) any amendments to any of the tax returns, including 
        schedules or attachments, described in paragraph (1) or (2); 
        and
            ``(4) in a case under chapter 13, a statement subject to 
        the penalties of perjury by the debtor of the debtor's income 
        and expenditures in the preceding tax year and monthly income, 
        that shows how the amounts are calculated--
                    ``(A) beginning on the date that is the later of 90 
                days after the close of the debtor's tax year or 1 year 
                after the order for relief, unless a plan has been 
                confirmed; and
                    ``(B) thereafter, on or before the date that is 45 
                days before each anniversary of the confirmation of the 
                plan until the case is closed.
    ``(g)(1) A statement referred to in subsection (f)(4) shall 
disclose--
            ``(A) the amount and sources of income of the debtor;
            ``(B) the identity of any person responsible with the 
        debtor for the support of any dependent of the debtor; and
            ``(C) the identity of any person who contributed, and the 
        amount contributed, to the household in which the debtor 
        resides.
    ``(2) The tax returns, amendments, and statement of income and 
expenditures described in paragraph (1) shall be available to the 
United States trustee, any bankruptcy administrator, any trustee, and 
any party in interest for inspection and copying, subject to the 
requirements of subsection (h).
    ``(h)(1) Not later than 30 days after the date of enactment of the 
Bankruptcy Reform Act of 2000, the Director of the Administrative 
Office of the United States Courts shall establish procedures for 
safeguarding the confidentiality of any tax information required to be 
provided under this section.
    ``(2) The procedures under paragraph (1) shall include restrictions 
on creditor access to tax information that is required to be provided 
under this section.
    ``(3) Not later than 1 year after the date of enactment of the 
Bankruptcy Reform Act of 2000, the Director of the Administrative 
Office of the United States Courts shall prepare and submit to Congress 
a report that--
            ``(A) assesses the effectiveness of the procedures under 
        paragraph (1); and
            ``(B) if appropriate, includes proposed legislation to--
                    ``(i) further protect the confidentiality of tax 
                information; and
                    ``(ii) provide penalties for the improper use by 
                any person of the tax information required to be 
                provided under this section.
    ``(i) If requested by the United States trustee or a trustee 
serving in the case, the debtor shall provide--
            ``(1) a document that establishes the identity of the 
        debtor, including a driver's license, passport, or other 
        document that contains a photograph of the debtor; and
            ``(2) such other personal identifying information relating 
        to the debtor that establishes the identity of the debtor.''.

SEC. 316. DISMISSAL FOR FAILURE TO TIMELY FILE SCHEDULES OR PROVIDE 
              REQUIRED INFORMATION.

    Section 521 of title 11, United States Code, as amended by section 
315 of this Act, is amended by adding at the end the following:
    ``(j)(1) Notwithstanding section 707(a), and subject to paragraph 
(2), if an individual debtor in a voluntary case under chapter 7 or 13 
fails to file all of the information required under subsection (a)(1) 
within 45 days after the filing of the petition commencing the case, 
the case shall be automatically dismissed effective on the 46th day 
after the filing of the petition.
    ``(2) With respect to a case described in paragraph (1), any party 
in interest may request the court to enter an order dismissing the 
case. If requested, the court shall enter an order of dismissal not 
later than 5 days after such request.
    ``(3) Upon request of the debtor made within 45 days after the 
filing of the petition commencing a case described in paragraph (1), 
the court may allow the debtor an additional period of not to exceed 45 
days to file the information required under subsection (a)(1) if the 
court finds justification for extending the period for the filing.''.

SEC. 317. ADEQUATE TIME TO PREPARE FOR HEARING ON CONFIRMATION OF THE 
              PLAN.

    (a) Hearing.--Section 1324 of title 11, United States Code, is 
amended--
            (1) by striking ``After'' and inserting the following:
    ``(a) Except as provided in subsection (b) and after''; and
            (2) by adding at the end the following:
    ``(b) The hearing on confirmation of the plan may be held not later 
than 45 days after the meeting of creditors under section 341(a).''.
    (b) Filing of Plan.--Section 1321 of title 11, United States Code, 
is amended to read as follows:
``Sec. 1321. Filing of plan
    ``Not later than 90 days after the order for relief under this 
chapter, the debtor shall file a plan, except that the court may extend 
such period if the need for an extension is attributable to 
circumstances for which the debtor should not justly be held 
accountable.''.

SEC. 318. CHAPTER 13 PLANS TO HAVE A 5-YEAR DURATION IN CERTAIN CASES.

    Section 1322(d) of title 11, United States Code, is amended to read 
as follows:
    ``(d)(1) Except as provided in paragraph (2), the plan may not 
provide for payments over a period that is longer than 3 years.
    ``(2) The plan may provide for payments over a period that is 
longer than 3 years if--
            ``(A) the plan is for a case that was converted to a case 
        under this chapter from a case under chapter 7, or the plan is 
        for a debtor who has been dismissed from chapter 7 by reason of 
        section 707(b), in which case the plan shall provide for 
        payments over a period of 5 years; or
            ``(B) the plan is for a case that is not described in 
        subparagraph (A), and the court, for cause, approves a period 
        longer than 3 years, but not to exceed 5 years.''.

SEC. 319. SENSE OF THE CONGRESS REGARDING EXPANSION OF RULE 9011 OF THE 
              FEDERAL RULES OF BANKRUPTCY PROCEDURE.

    It is the sense of Congress that Rule 9011 of the Federal Rules of 
Bankruptcy Procedure (11 U.S.C. App.) should be modified to include a 
requirement that all documents (including schedules), signed and 
unsigned, submitted to the court or to a trustee by debtors who 
represent themselves and debtors who are represented by an attorney be 
submitted only after the debtor or the debtor's attorney has made 
reasonable inquiry to verify that the information contained in such 
documents is--
            (1) well grounded in fact; and
            (2) warranted by existing law or a good-faith argument for 
        the extension, modification, or reversal of existing law.

SEC. 320. PROMPT RELIEF FROM STAY IN INDIVIDUAL CASES.

    Section 362(e) of title 11, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(e)''; and
            (2) by adding at the end the following:
    ``(2) Notwithstanding paragraph (1), in the case of an individual 
filing under chapter 7, 11, or 13, the stay under subsection (a) shall 
terminate on the date that is 60 days after a request is made by a 
party in interest under subsection (d), unless--
            ``(A) a final decision is rendered by the court during the 
        60-day period beginning on the date of the request; or
            ``(B) that 60-day period is extended--
                    ``(i) by agreement of all parties in interest; or
                    ``(ii) by the court for such specific period of 
                time as the court finds is required for good cause, as 
                described in findings made by the court.''.

SEC. 321. CHAPTER 11 CASES FILED BY INDIVIDUALS.

    (a) Property of the Estate.--
            (1) In general.--Subchapter I of chapter 11 of title 11, 
        United States Code, is amended by adding at the end the 
        following:
``Sec. 1115. Property of the estate
    ``In a case concerning an individual, property of the estate 
includes, in addition to the property specified in section 541--
            ``(1) all property of the kind specified in section 541 
        that the debtor acquires after the commencement of the case but 
        before the case is closed, dismissed, or converted to a case 
        under chapter 7, 12, or 13, whichever occurs first; and
            ``(2) earnings from services performed by the debtor after 
        the commencement of the case but before the case is closed, 
        dismissed, or converted to a case under chapter 7, 12, or 13, 
        whichever occurs first.''.
            (2) Clerical amendment.--The table of sections for chapter 
        11 of title 11, United States Code, is amended by adding at the 
        end of the matter relating to subchapter I the following:

``1115. Property of the estate.''.
    (b) Contents of Plan.--Section 1123(a) of title 11, United States 
Code, is amended--
            (1) in paragraph (6), by striking ``and'' at the end;
            (2) in paragraph (7), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(8) in a case concerning an individual, provide for the 
        payment to creditors through the plan of all or such portion of 
        earnings from personal services performed by the debtor after 
        the commencement of the case or other future income of the 
        debtor as is necessary for the execution of the plan.''.
    (c) Confirmation of Plan.--
            (1) Requirements relating to value of property.--Section 
        1129(a) of title 11, United States Code, is amended by adding 
        at the end the following:
            ``(14) In a case concerning an individual in which the 
        holder of an allowed unsecured claim objects to the 
        confirmation of the plan--
                    ``(A) the value of the property to be distributed 
                under the plan on account of such claim is, as of the 
                effective date of the plan, not less than the amount of 
                such claim; or
                    ``(B) the value of the property to be distributed 
                under the plan is not less than the debtor's projected 
                disposable income (as that term is defined in section 
                1325(b)(2)) to be received during the 3-year period 
                beginning on the date that the first payment is due 
                under the plan, or during the term of the plan, 
                whichever is longer.''.
            (2) Requirement relating to interests in property.--Section 
        1129(b)(2)(B)(ii) of title 11, United States Code, is amended 
        by inserting before the period at the end the following: ``, 
        except that in a case concerning an individual, the debtor may 
        retain property included in the estate under section 1115, 
        subject to the requirements of subsection (a)(14)''.
    (d) Effect of Confirmation--Section 1141(d) of title 11, United 
States Code, is amended--
            (1) in paragraph (2), by striking ``The confirmation of a 
        plan does not discharge an individual debtor'' and inserting 
        ``A discharge under this chapter does not discharge a debtor''; 
        and
            (2) by adding at the end the following:
    ``(5) In a case concerning an individual--
            ``(A) except as otherwise ordered for cause shown, the 
        discharge is not effective until completion of all payment 
        under the plan; and
            ``(B) at any time after the confirmation of the plan and 
        after notice and a hearing, the court may grant a discharge to 
        a debtor that has not completed payments under the plan only 
        if--
                    ``(i) for each allowed unsecured claim, the value 
                as of the effective date of the plan, of property 
                actually distributed under the plan on account of that 
                claim is not less than the amount that would have been 
                paid on such claim if the estate of the debtor had been 
                liquidated under chapter 7 of this title on such date; 
                and
                    ``(ii) modification of the plan under 1127 of this 
                title is not practicable.''.
    (e) Modification of Plan.--Section 1127 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(e) In a case concerning an individual, the plan may be modified 
at any time after confirmation of the plan but before the completion of 
payments under the plan, whether or not the plan has been substantially 
consummated, upon request of the debtor, the trustee, the United States 
trustee, or the holder of an allowed unsecured claim, to--
            ``(1) increase or reduce the amount of payments on claims 
        of a particular class provided for by the plan;
            ``(2) extend or reduce the time period for such payments; 
        or
            ``(3) alter the amount of the distribution to a creditor 
        whose claim is provided for by the plan to the extent necessary 
        to take account of any payment of such claim made other than 
        under the plan.
    ``(f)(1) Sections 1121 through 1128 of this title and the 
requirements of section 1129 of this title apply to any modification 
under subsection (a).
    ``(2) The plan, as modified, shall become the plan only after there 
has been disclosure under section 1125, as the court may direct, notice 
and a hearing, and such modification is approved.''.

SEC. 322. EXCLUDING EMPLOYEE BENEFIT PLAN PARTICIPANT CONTRIBUTIONS AND 
              OTHER PROPERTY FROM THE ESTATE.

    (a) In General.--Section 541(b) of title 11, United States Code, as 
amended by section 903 of this Act, is amended--
            (1) by striking ``or'' at the end of paragraph (5);
            (2) by redesignating paragraph (6) as paragraph (7); and
            (3) by inserting after paragraph (5) the following:
            ``(6) any amount--
                    ``(A) withheld by an employer from the wages of 
                employees for payment as contributions to--
                            ``(i) an employee benefit plan subject to 
                        title I of the Employee Retirement Income 
                        Security Act of 1974 (29 U.S.C. 1001 et seq.); 
                        or
                            ``(ii) a health insurance plan regulated by 
                        State law whether or not subject to such title; 
                        or
                    ``(B) received by the employer from employees for 
                payment as contributions to--
                            ``(i) an employee benefit plan subject to 
                        title I of the Employee Retirement Income 
                        Security Act of 1974 (29 U.S.C. 1001 et seq.); 
                        or
                            ``(ii) a health insurance plan regulated by 
                        State law whether or not subject to such 
                        title;''.
    (b) Application of Amendment.--The amendment made by this section 
shall not apply to cases commenced under title 11, United States Code, 
before the expiration of the 180-day period beginning on the date of 
the enactment of this Act.

SEC. 323. CLARIFICATION OF POSTPETITION WAGES AND BENEFITS.

    Section 503(b)(1)(A) of title 11, United States Code, is amended to 
read as follows:
            ``(A) the actual, necessary costs and expenses of 
        preserving the estate, including wages, salaries, or 
        commissions for services rendered after the commencement of the 
        case, and wages and benefits awarded as back pay attributable 
        to any period of time after commencement of the case as a 
        result of the debtor's violation of Federal or State law, 
        without regard to when the original unlawful act occurred or to 
        whether any services were rendered;''.

SEC. 324. LIMITATION.

    (a) Exemptions.--Section 522 of title 11, United States Code, as 
amended by sections 224 and 307 of this Act, is amended--
            (1) in subsection (b)(3)(A), by inserting ``subject to 
        subsection (n),'' before ``any property''; and
            (2) by adding at the end the following:
    ``(n)(1) Except as provided in paragraph (2), as a result of 
electing under subsection (b)(3)(A) to exempt property under State or 
local law, a debtor may not exempt any amount of interest that exceeds 
in the aggregate $100,000 in value in--
            ``(A) real or personal property that the debtor or a 
        dependent of the debtor uses as a residence;
            ``(B) a cooperative that owns property that the debtor or a 
        dependent of the debtor uses as a residence; or
            ``(C) a burial plot for the debtor or a dependent of the 
        debtor.
    ``(2) The limitation under paragraph (1) shall not apply to an 
exemption claimed under subsection (b)(3)(A) by a family farmer for the 
principal residence of that farmer.''.
    (b) Adjustment of Dollar Amounts.--Section 104(b) of title 11, 
United States Code, is amended--
            (1) in paragraph (1), by striking ``522(d),'' and inserting 
        ``522 (d) or (n),''; and
            (2) in paragraph (3), by striking ``522(d),'' and inserting 
        ``522 (d) or (n),''.

SEC. 325. EXCLUSIVE JURISDICTION IN MATTERS INVOLVING BANKRUPTCY 
              PROFESSIONALS.

    Section 1334 of title 28, United States Code, is amended--
            (1) in subsection (b) by striking ``Notwithstanding'' and 
        inserting ``Except as provided in subsection (e)(2), and 
        notwithstanding''; and
            (2) amending subsection (e) to read as follows:
    ``(e) The district court in which a case under title 11 is 
commenced or is pending shall have exclusive jurisdiction--
            ``(1) of all the property, wherever located, of the debtor 
        as of the commencement of such case, and of property of the 
        estate; and
            ``(2) over all claims or causes of action that involve 
        construction of section 327 of title 11, United States Code, or 
        rules relating to disclosure requirements under section 327.''.

SEC. 326. UNITED STATES TRUSTEE PROGRAM FILING FEE INCREASE.

    (a) Actions under chapter 7 or 13 of title 11, United States 
Code.--Section 1930(a) of title 28, United States Code, is amended by 
striking paragraph (1) and inserting the following:
            ``(1) For a case commenced--
                    ``(A) under chapter 7 of title 11, $160; or
                    ``(B) under chapter 13 of title 11, $150.''.
    (b) United States Trustee System Fund.--Section 589a(b) of title 
28, United States Code, is amended--
            (1) by striking paragraph (1) and inserting the following:
            ``(1)(A) 40.63 percent of the fees collected under section 
        1930(a)(1)(A) of this title in cases commenced under chapter 7 
        of title 11; and
            ``(B) 70.00 percent of the fees collected under section 
        1930(a)(1)(B) of this title in cases commenced under chapter 13 
        of title 11;'';
            (2) in paragraph (2) by striking ``one-half'' and inserting 
        ``three-fourths''; and
            (3) in paragraph (4) by striking ``one-half'' and inserting 
        ``100 percent''.
    (c) Collection and Deposit of Miscellaneous Bankruptcy Fees.--
Section 406(b) of the Judiciary Appropriations Act, 1990 (28 U.S.C. 
1931 note) is amended by striking ``pursuant to 28 U.S.C. section 
1930(b) and 30.76 per centum of the fees hereafter collected under 28 
U.S.C. section 1930(a)(1) and 25 percent of the fees hereafter 
collected under 28 U.S.C. section 1930(a)(3) shall be deposited as 
offsetting receipts to the fund established under 28 U.S.C. section 
1931'' and inserting ``under section 1930(b) of title 28, United States 
Code, and 31.25 percent of the fees collected under section 
1930(a)(1)(A) of that title, 30.00 percent of the fees collected under 
section 1930(a)(1)(B) of that title, and 25 percent of the fees 
collected under section 1930(a)(3) of that title shall be deposited as 
offsetting receipts to the fund established under section 1931 of that 
title''.

SEC. 327. COMPENSATION OF TRUSTEES IN CERTAIN CASES UNDER CHAPTER 7 OF 
              TITLE 11, UNITED STATES CODE.

    Section 326 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(e) In a case that has been converted under section 706, or after 
a case has been converted or dismissed under section 707 or the debtor 
has been denied a discharge under section 727--
            ``(1) the court may allow reasonable compensation under 
        section 330 for the trustee's services rendered, payable after 
        the trustee renders services; and
            ``(2) any allowance made by a court under paragraph (1) 
        shall not be subject to the limitations under subsection 
        (a).''.

SEC. 328. NONDISCHARGEABILITY OF DEBTS INCURRED THROUGH THE COMMISSION 
              OF VIOLENCE AT CLINICS.

    Section 523(a) of title 11, United States Code, as amended by 
section 224 of this Act, is amended--
            (1) in paragraph (18), by striking ``or'' at the end;
            (2) in paragraph (19)(B), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(20) that results from any judgment, order, consent 
        order, or decree entered in any Federal or State court, or 
        contained in any settlement agreement entered into by the 
        debtor, including any damages, fine, penalty, citation, or 
        attorney fee or cost owed by the debtor, arising from--
                    ``(A) an actual or potential action under section 
                248 of title 18;
                    ``(B) an actual or potential action under any 
                Federal, State, or local law, the purpose of which is 
                to protect--
                            ``(i) access to a health care facility, 
                        including a facility providing reproductive 
                        health services, as defined in section 248(e) 
                        of title 18 (referred to in this paragraph as a 
                        `health care facility'); or
                            ``(ii) the provision of health services, 
                        including reproductive health services 
                        (referred to in this paragraph as `health 
                        services');
                    ``(C) an actual or potential action alleging the 
                violation of any Federal, State, or local statutory or 
                common law, including chapter 96 of title 18 and the 
                Federal civil rights laws (including sections 1977 
                through 1980 of the Revised Statutes) that results from 
                the debtor's actual, attempted, or alleged--
                            ``(i) harassment of, intimidation of, 
                        interference with, obstruction of, injury to, 
                        threat to, or violence against any person--
                                    ``(I) because that person provides 
                                or has provided health services;
                                    ``(II) because that person is or 
                                has been obtaining health services; or
                                    ``(III) to deter that person, any 
                                other person, or a class of persons 
                                from obtaining or providing health 
                                services; or
                            ``(ii) damage or destruction of property of 
                        a health care facility; or
                    ``(D) an actual or alleged violation of a court 
                order or injunction that protects access to a health 
                care facility or the provision of health services.''.

       TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS

           Subtitle A--General Business Bankruptcy Provisions

SEC. 401. ROLLING STOCK EQUIPMENT.

    (a) In General.--Section 1168 of title 11, United States Code, is 
amended to read as follows:
``Sec. 1168. Rolling stock equipment
    ``(a)(1) The right of a secured party with a security interest in 
or of a lessor or conditional vendor of equipment described in 
paragraph (2) to take possession of such equipment in compliance with 
an equipment security agreement, lease, or conditional sale contract, 
and to enforce any of its other rights or remedies under such security 
agreement, lease, or conditional sale contract, to sell, lease, or 
otherwise retain or dispose of such equipment, is not limited or 
otherwise affected by any other provision of this title or by any power 
of the court, except that the right to take possession and enforce 
those other rights and remedies shall be subject to section 362, if--
            ``(A) before the date that is 60 days after the date of 
        commencement of a case under this chapter, the trustee, subject 
        to the court's approval, agrees to perform all obligations of 
        the debtor under such security agreement, lease, or conditional 
        sale contract; and
            ``(B) any default, other than a default of a kind described 
        in section 365(b)(2), under such security agreement, lease, or 
        conditional sale contract that--
                    ``(i) occurs before the date of commencement of the 
                case and is an event of default therewith is cured 
                before the expiration of such 60-day period;
                    ``(ii) occurs or becomes an event of default after 
                the date of commencement of the case and before the 
                expiration of such 60-day period is cured before the 
                later of--
                            ``(I) the date that is 30 days after the 
                        date of the default or event of the default; or
                            ``(II) the expiration of such 60-day 
                        period; and
                    ``(iii) occurs on or after the expiration of such 
                60-day period is cured in accordance with the terms of 
                such security agreement, lease, or conditional sale 
                contract, if cure is permitted under that agreement, 
                lease, or conditional sale contract.
    ``(2) The equipment described in this paragraph--
            ``(A) is rolling stock equipment or accessories used on 
        rolling stock equipment, including superstructures or racks, 
        that is subject to a security interest granted by, leased to, 
        or conditionally sold to a debtor; and
            ``(B) includes all records and documents relating to such 
        equipment that are required, under the terms of the security 
        agreement, lease, or conditional sale contract, to be 
        surrendered or returned by the debtor in connection with the 
        surrender or return of such equipment.
    ``(3) Paragraph (1) applies to a secured party, lessor, or 
conditional vendor acting in its own behalf or acting as trustee or 
otherwise in behalf of another party.
    ``(b) The trustee and the secured party, lessor, or conditional 
vendor whose right to take possession is protected under subsection (a) 
may agree, subject to the court's approval, to extend the 60-day period 
specified in subsection (a)(1).
    ``(c)(1) In any case under this chapter, the trustee shall 
immediately surrender and return to a secured party, lessor, or 
conditional vendor, described in subsection (a)(1), equipment described 
in subsection (a)(2), if at any time after the date of commencement of 
the case under this chapter such secured party, lessor, or conditional 
vendor is entitled under subsection (a)(1) to take possession of such 
equipment and makes a written demand for such possession of the 
trustee.
    ``(2) At such time as the trustee is required under paragraph (1) 
to surrender and return equipment described in subsection (a)(2), any 
lease of such equipment, and any security agreement or conditional sale 
contract relating to such equipment, if such security agreement or 
conditional sale contract is an executory contract, shall be deemed 
rejected.
    ``(d) With respect to equipment first placed in service on or 
before October 22, 1994, for purposes of this section--
            ``(1) the term `lease' includes any written agreement with 
        respect to which the lessor and the debtor, as lessee, have 
        expressed in the agreement or in a substantially 
        contemporaneous writing that the agreement is to be treated as 
        a lease for Federal income tax purposes; and
            ``(2) the term `security interest' means a purchase-money 
        equipment security interest.
    ``(e) With respect to equipment first placed in service after 
October 22, 1994, for purposes of this section, the term `rolling stock 
equipment' includes rolling stock equipment that is substantially 
rebuilt and accessories used on such equipment.''.
    (b) Aircraft Equipment and Vessels.--Section 1110 of title 11, 
United States Code, is amended to read as follows:
``Sec. 1110. Aircraft equipment and vessels
    ``(a)(1) Except as provided in paragraph (2) and subject to 
subsection (b), the right of a secured party with a security interest 
in equipment described in paragraph (3), or of a lessor or conditional 
vendor of such equipment, to take possession of such equipment in 
compliance with a security agreement, lease, or conditional sale 
contract, and to enforce any of its other rights or remedies, under 
such security agreement, lease, or conditional sale contract, to sell, 
lease, or otherwise retain or dispose of such equipment, is not limited 
or otherwise affected by any other provision of this title or by any 
power of the court.
    ``(2) The right to take possession and to enforce the other rights 
and remedies described in paragraph (1) shall be subject to section 362 
if--
            ``(A) before the date that is 60 days after the date of the 
        order for relief under this chapter, the trustee, subject to 
        the approval of the court, agrees to perform all obligations of 
        the debtor under such security agreement, lease, or conditional 
        sale contract; and
            ``(B) any default, other than a default of a kind specified 
        in section 365(b)(2), under such security agreement, lease, or 
        conditional sale contract that occurs--
                    ``(i) before the date of the order is cured before 
                the expiration of such 60-day period;
                    ``(ii) after the date of the order and before the 
                expiration of such 60-day period is cured before the 
                later of--
                            ``(I) the date that is 30 days after the 
                        date of the default; or
                            ``(II) the expiration of such 60-day 
                        period; and
                    ``(iii) on or after the expiration of such 60-day 
                period is cured in compliance with the terms of such 
                security agreement, lease, or conditional sale 
                contract, if a cure is permitted under that agreement, 
                lease, or contract.
    ``(3) The equipment described in this paragraph--
            ``(A) is--
                    ``(i) an aircraft, aircraft engine, propeller, 
                appliance, or spare part (as defined in section 40102 
                of title 49) that is subject to a security interest 
                granted by, leased to, or conditionally sold to a 
                debtor that, at the time such transaction is entered 
                into, holds an air carrier operating certificate issued 
                under chapter 447 of title 49 for aircraft capable of 
                carrying 10 or more individuals or 6,000 pounds or more 
                of cargo; or
                    ``(ii) a documented vessel (as defined in section 
                30101(1) of title 46) that is subject to a security 
                interest granted by, leased to, or conditionally sold 
                to a debtor that is a water carrier that, at the time 
                such transaction is entered into, holds a certificate 
                of public convenience and necessity or permit issued by 
                the Department of Transportation; and
            ``(B) includes all records and documents relating to such 
        equipment that are required, under the terms of the security 
        agreement, lease, or conditional sale contract, to be 
        surrendered or returned by the debtor in connection with the 
        surrender or return of such equipment.
    ``(4) Paragraph (1) applies to a secured party, lessor, or 
conditional vendor acting in its own behalf or acting as trustee or 
otherwise in behalf of another party.
    ``(b) The trustee and the secured party, lessor, or conditional 
vendor whose right to take possession is protected under subsection (a) 
may agree, subject to the approval of the court, to extend the 60-day 
period specified in subsection (a)(1).
    ``(c)(1) In any case under this chapter, the trustee shall 
immediately surrender and return to a secured party, lessor, or 
conditional vendor, described in subsection (a)(1), equipment described 
in subsection (a)(3), if at any time after the date of the order for 
relief under this chapter such secured party, lessor, or conditional 
vendor is entitled under subsection (a)(1) to take possession of such 
equipment and makes a written demand for such possession to the 
trustee.
    ``(2) At such time as the trustee is required under paragraph (1) 
to surrender and return equipment described in subsection (a)(3), any 
lease of such equipment, and any security agreement or conditional sale 
contract relating to such equipment, if such security agreement or 
conditional sale contract is an executory contract, shall be deemed 
rejected.
    ``(d) With respect to equipment first placed in service on or 
before October 22, 1994, for purposes of this section--
            ``(1) the term `lease' includes any written agreement with 
        respect to which the lessor and the debtor, as lessee, have 
        expressed in the agreement or in a substantially 
        contemporaneous writing that the agreement is to be treated as 
        a lease for Federal income tax purposes; and
            ``(2) the term `security interest' means a purchase-money 
        equipment security interest.''.

SEC. 402. ADEQUATE PROTECTION FOR INVESTORS.

    (a) Definition.--Section 101 of title 11, United States Code, as 
amended by section 306(c) of this Act, is amended by inserting after 
paragraph (48) the following:
            ``(48A) `securities self regulatory organization' means 
        either a securities association registered with the Securities 
        and Exchange Commission under section 15A of the Securities 
        Exchange Act of 1934 (15 U.S.C. 78o-3) or a national securities 
        exchange registered with the Securities and Exchange Commission 
        under section 6 of the Securities Exchange Act of 1934 (15 
        U.S.C. 78f);''.
    (b) Automatic Stay.--Section 362(b) of title 11, United States 
Code, as amended by section 311 of this Act, is amended--
            (1) in paragraph (24), by striking ``or'' at the end;
            (2) in paragraph (25), by striking the period at the end 
        and inserting ``; or''; and
            (3) by inserting after paragraph (25) the following:
            ``(26) under subsection (a), of--
                    ``(A) the commencement or continuation of an 
                investigation or action by a securities self regulatory 
                organization to enforce such organization's regulatory 
                power;
                    ``(B) the enforcement of an order or decision, 
                other than for monetary sanctions, obtained in an 
                action by the securities self regulatory organization 
                to enforce such organization's regulatory power; or
                    ``(C) any act taken by the securities self 
                regulatory organization to delist, delete, or refuse to 
                permit quotation of any stock that does not meet 
                applicable regulatory requirements.''.

SEC. 403. MEETINGS OF CREDITORS AND EQUITY SECURITY HOLDERS.

    Section 341 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(e) Notwithstanding subsections (a) and (b), the court, on the 
request of a party in interest and after notice and a hearing, for 
cause may order that the United States trustee not convene a meeting of 
creditors or equity security holders if the debtor has filed a plan as 
to which the debtor solicited acceptances prior to the commencement of 
the case.''.

SEC. 404. PROTECTION OF REFINANCE OF SECURITY INTEREST.

    Subparagraphs (A), (B), and (C) of section 547(e)(2) of title 11, 
United States Code, are each amended by striking ``10'' each place it 
appears and inserting ``30''.

SEC. 405. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

    Section 365(d)(4) of title 11, United States Code, is amended to 
read as follows:
    ``(4)(A) Subject to subparagraph (B), in any case under any chapter 
of this title, an unexpired lease of nonresidential real property under 
which the debtor is the lessee shall be deemed rejected and the trustee 
shall immediately surrender that nonresidential real property to the 
lessor if the trustee does not assume or reject the unexpired lease by 
the earlier of--
            ``(i) the date that is 120 days after the date of the order 
        for relief; or
            ``(ii) the date of the entry of an order confirming a plan.
    ``(B) The court may extend the period determined under subparagraph 
(A) only upon a motion of the lessor.''.

SEC. 406. CREDITORS AND EQUITY SECURITY HOLDERS COMMITTEES.

    (a) Appointment.--Section 1102(a)(2) of title 11, United States 
Code, is amended by inserting before the first sentence the following: 
``On its own motion or on request of a party in interest, and after 
notice and hearing, the court may order a change in the membership of a 
committee appointed under this subsection, if the court determines that 
the change is necessary to ensure adequate representation of creditors 
or equity security holders. The court may increase the number of 
members of a committee to include a creditor that is a small business 
concern (as described in section 3(a)(1) of the Small Business Act (15 
U.S.C. 632(a)(1))), if the court determines that the creditor holds 
claims (of the kind represented by the committee) the aggregate amount 
of which, in comparison to the annual gross revenue of that creditor, 
is disproportionately large.''.
    (b) Information.--Section 1102(b) of title 11, United States Code, 
is amended by adding at the end the following:
    ``(3) A committee appointed under subsection (a) shall--
            ``(A) provide access to information for creditors who--
                    ``(i) hold claims of the kind represented by that 
                committee; and
                    ``(ii) are not appointed to the committee;
            ``(B) solicit and receive comments from the creditors 
        described in subparagraph (A); and
            ``(C) be subject to a court order that compels any 
        additional report or disclosure to be made to the creditors 
        described in subparagraph (A).''.

SEC. 407. AMENDMENT TO SECTION 546 OF TITLE 11, UNITED STATES CODE.

    Section 546 of title 11, United States Code, is amended--
            (1) by redesignating the second subsection designated as 
        subsection (g) (as added by section 222(a) of Public Law 103-
        394) as subsection (i); and
            (2) by adding at the end the following:
    ``(j)(1) Notwithstanding section 545 (2) and (3), the trustee may 
not avoid a warehouseman's lien for storage, transportation or other 
costs incidental to the storage and handling of goods.
    ``(2) The prohibition under paragraph (1) shall be applied in a 
manner consistent with any applicable State statute that is similar to 
section 7-209 of the Uniform Commercial Code.''.

SEC. 408. LIMITATION.

    Section 546(c)(1)(B) of title 11, United States Code, is amended by 
striking ``20'' and inserting ``45''.

SEC. 409. AMENDMENT TO SECTION 330(A) OF TITLE 11, UNITED STATES CODE.

    Section 330(a)(3) of title 11, United States Code, is amended--
            (1) by striking ``(A) the; and inserting ``(i) the'';
            (2) by striking ``(B)'' and inserting ``(ii)'';
            (3) by striking ``(C)'' and inserting ``(iii)'';
            (4) by striking ``(D)'' and inserting ``(iv)'';
            (5) by striking ``(E)'' and inserting ``(v)'';
            (6) in subparagraph (A), by inserting ``to an examiner, 
        trustee under chapter 11, or professional person'' after 
        ``awarded''; and
            (7) by adding at the end the following:
    ``(B) In determining the amount of reasonable compensation to be 
awarded a trustee, the court shall treat such compensation as a 
commission based on the results achieved.''.

SEC. 410. POSTPETITION DISCLOSURE AND SOLICITATION.

    Section 1125 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(g) Notwithstanding subsection (b), an acceptance or rejection of 
the plan may be solicited from a holder of a claim or interest if such 
solicitation complies with applicable nonbankruptcy law and if such 
holder was solicited before the commencement of the case in a manner 
complying with applicable nonbankruptcy law.''.

SEC. 411. PREFERENCES.

    Section 547(c) of title 11, United States Code, is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) to the extent that such transfer was in payment of a 
        debt incurred by the debtor in the ordinary course of business 
        or financial affairs of the debtor and the transferee, and such 
        transfer was--
                    ``(A) made in the ordinary course of business or 
                financial affairs of the debtor and the transferee; or
                    ``(B) made according to ordinary business terms;'';
            (2) in paragraph (7) by striking ``or'' at the end;
            (3) in paragraph (8) by striking the period at the end and 
        inserting ``; or''; and
            (4) by adding at the end the following:
            ``(9) if, in a case filed by a debtor whose debts are not 
        primarily consumer debts, the aggregate value of all property 
        that constitutes or is affected by such transfer is less than 
        $5,000.''.

SEC. 412. VENUE OF CERTAIN PROCEEDINGS.

    Section 1409(b) of title 28, United States Code, is amended by 
inserting ``, or a nonconsumer debt against a noninsider of less than 
$10,000,'' after ``$5,000''.

SEC. 413. PERIOD FOR FILING PLAN UNDER CHAPTER 11.

    Section 1121(d) of title 11, United States Code, is amended--
            (1) by striking ``On'' and inserting ``(1) Subject to 
        paragraph (1), on''; and
            (2) by adding at the end the following:
    ``(2)(A) The 120-day period specified in paragraph (1) may not be 
extended beyond a date that is 18 months after the date of the order 
for relief under this chapter.
    ``(B) The 180-day period specified in paragraph (1) may not be 
extended beyond a date that is 20 months after the date of the order 
for relief under this chapter.''.

SEC. 414. FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS.

    Section 523(a)(16) of title 11, United States Code, is amended--
            (1) by striking ``dwelling'' the first place it appears;
            (2) by striking ``ownership or'' and inserting 
        ``ownership,'';
            (3) by striking ``housing'' the first place it appears; and
            (4) by striking ``but only'' and all that follows through 
        ``but nothing in this paragraph'' and inserting ``or a lot in a 
        homeowners association, for as long as the debtor or the 
        trustee has a legal, equitable, or possessory ownership 
        interest in such unit, such corporation, or such lot, and until 
        such time as the debtor or trustee has surrendered any legal, 
        equitable or possessory interest in such unit, such 
        corporation, or such lot, but nothing in this paragraph''.

SEC. 415. CREDITOR REPRESENTATION AT FIRST MEETING OF CREDITORS.

    Section 341(c) of title 11, United States Code, is amended by 
inserting after the first sentence the following: ``Notwithstanding any 
local court rule, provision of a State constitution, any other Federal 
or State law that is not a bankruptcy law, or other requirement that 
representation at the meeting of creditors under subsection (a) be by 
an attorney, a creditor holding a consumer debt or any representative 
of the creditor (which may include an entity or an employee of an 
entity and may be a representative for more than 1 creditor) shall be 
permitted to appear at and participate in the meeting of creditors in a 
case under chapter 7 or 13, either alone or in conjunction with an 
attorney for the creditor. Nothing in this subsection shall be 
construed to require any creditor to be represented by an attorney at 
any meeting of creditors.''.

SEC. 416. DEFINITION OF DISINTERESTED PERSON.

    Section 101(14) of title 11, United States Code, is amended to read 
as follows:
            ``(14) `disinterested person' means a person that--
                    ``(A) is not a creditor, an equity security holder, 
                or an insider;
                    ``(B) is not and was not, within 2 years before the 
                date of the filing of the petition, a director, 
                officer, or employee of the debtor; and
                    ``(C) does not have an interest materially adverse 
                to the interest of the estate or of any class of 
                creditors or equity security holders, by reason of any 
                direct or indirect relationship to, connection with, or 
                interest in, the debtor, or for any other reason;''.

SEC. 417. FACTORS FOR COMPENSATION OF PROFESSIONAL PERSONS.

    Section 330(a)(3)(A) of title 11, United States Code, as amended by 
section 409 of this Act, is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) by redesignating clause (v) as clause (vi); and
            (3) by inserting after clause (iv) the following:
            ``(v) with respect to a professional person, whether the 
        person is board certified or otherwise has demonstrated skill 
        and experience in the bankruptcy field;''.

SEC. 418. APPOINTMENT OF ELECTED TRUSTEE.

    Section 1104(b) of title 11, United States Code, is amended--
            (1) by inserting ``(1)'' after ``(b)''; and
            (2) by adding at the end the following:
    ``(2)(A) If an eligible, disinterested trustee is elected at a 
meeting of creditors under paragraph (1), the United States trustee 
shall file a report certifying that election.
    ``(B) Upon the filing of a report under subparagraph (A)--
            ``(i) the trustee elected under paragraph (1) shall be 
        considered to have been selected and appointed for purposes of 
        this section; and
            ``(ii) the service of any trustee appointed under 
        subsection (d) shall terminate.
    ``(C) In the case of any dispute arising out of an election 
described in subparagraph (A), the court shall resolve the dispute.''.

SEC. 419. UTILITY SERVICE.

    Section 366 of title 11, United States Code, is amended--
            (1) in subsection (a), by striking ``subsection (b)'' and 
        inserting ``subsections (b) and (c)''; and
            (2) by adding at the end the following:
    ``(c)(1)(A) For purposes of this subsection, the term `assurance of 
payment' means--
            ``(i) a cash deposit;
            ``(ii) a letter of credit;
            ``(iii) a certificate of deposit;
            ``(iv) a surety bond;
            ``(v) a prepayment of utility consumption; or
            ``(vi) another form of security that is mutually agreed on 
        between the utility and the debtor or the trustee.
    ``(B) For purposes of this subsection an administrative expense 
priority shall not constitute an assurance of payment.
    ``(2) Subject to paragraphs (3) through (5), with respect to a case 
filed under chapter 11, a utility referred to in subsection (a) may 
alter, refuse, or discontinue utility service, if during the 20-day 
period beginning on the date of filing of the petition, the utility 
does not receive from the debtor or the trustee adequate assurance of 
payment for utility service that is satisfactory to the utility.
    ``(3)(A) On request of a party in interest and after notice and a 
hearing, the court may order modification of the amount of an assurance 
of payment under paragraph (2).
    ``(B) In making a determination under this paragraph whether an 
assurance of payment is adequate, the court may not consider--
            ``(i) the absence of security before the date of filing of 
        the petition;
            ``(ii) the payment by the debtor of charges for utility 
        service in a timely manner before the date of filing of the 
        petition; or
            ``(iii) the availability of an administrative expense 
        priority.
    ``(4) Notwithstanding any other provision of law, with respect to a 
case subject to this subsection, a utility may recover or set off 
against a security deposit provided to the utility by the debtor before 
the date of filing of the petition without notice or order of the 
court.''.

SEC. 420. BANKRUPTCY FEES.

    Section 1930 of title 28, United States Code, is amended--
            (1) in subsection (a), by striking ``Notwithstanding 
        section 1915 of this title, the parties'' and inserting 
        ``Subject to subsection (f), the parties''; and
            (2) by adding at the end the following:
    ``(f)(1) The Judicial Conference of the United States shall 
prescribe procedures for waiving fees under this subsection.
    ``(2) Under the procedures described in paragraph (1), the district 
court or the bankruptcy court may waive a filing fee described in 
paragraph (3) for a case commenced under chapter 7 of title 11 if the 
court determines that an individual debtor whose income is less than 
125 percent of the income official poverty line (as defined by the 
Office of Management and Budget, and revised annually in accordance 
with section 673(2) of the Omnibus Budget Reconciliation Act of 1981) 
applicable to a family of the size involved is unable to pay that fee 
in installments.
    ``(3) A filing fee referred to in paragraph (2) is--
            ``(A) a filing fee under subsection (a)(1); or
            ``(B) any other fee prescribed by the Judicial Conference 
        of the United States under subsection (b) that is payable to 
        the clerk of the district court or the clerk of the bankruptcy 
        court upon the commencement of a case under chapter 7 of title 
        11.
    ``(4) In addition to waiving a fee under paragraph (2), the 
district court or the bankruptcy court may waive any other fee 
prescribed under subsection (b) or (c) if the court determines that the 
individual with an income at a level described in paragraph (2) is 
unable to pay that fee in installments.''.

SEC. 421. MORE COMPLETE INFORMATION REGARDING ASSETS OF THE ESTATE.

    (a) In General.--
            (1) Disclosure.--The Advisory Committee on Bankruptcy Rules 
        of the Judicial Conference of the United States, after 
        consideration of the views of the Director of the Executive 
        Office for the United States Trustees, shall propose for 
        adoption amended Federal Rules of Bankruptcy Procedure and 
        Official Bankruptcy Forms directing debtors under chapter 11 of 
        title 11, United States Code, to disclose the information 
        described in paragraph (2) by filing and serving periodic 
        financial and other reports designed to provide such 
        information.
            (2) Information.--The information referred to in paragraph 
        (1) is the value, operations, and profitability of any closely 
        held corporation, partnership, or of any other entity in which 
        the debtor holds a substantial or controlling interest.
    (b) Purpose.--The purpose of the rules and reports under subsection 
(a) shall be to assist parties in interest taking steps to ensure that 
the debtor's interest in any entity referred to in subsection (a)(2) is 
used for the payment of allowed claims against debtor.

            Subtitle B--Small Business Bankruptcy Provisions

SEC. 431. FLEXIBLE RULES FOR DISCLOSURE STATEMENT AND PLAN.

    Section 1125 of title 11, United States Code, is amended by 
striking subsection (f) and inserting the following:
    ``(f) Notwithstanding subsection (b), in a small business case--
            ``(1) in determining whether a disclosure statement 
        provides adequate information, the court shall consider the 
        complexity of the case, the benefit of additional information 
        to creditors and other parties in interest, and the cost of 
        providing additional information;
            ``(2) the court may determine that the plan itself provides 
        adequate information and that a separate disclosure statement 
        is not necessary;
            ``(3) the court may approve a disclosure statement 
        submitted on standard forms approved by the court or adopted 
        under section 2075 of title 28; and
            ``(4)(A) the court may conditionally approve a disclosure 
        statement subject to final approval after notice and a hearing;
            ``(B) acceptances and rejections of a plan may be solicited 
        based on a conditionally approved disclosure statement if the 
        debtor provides adequate information to each holder of a claim 
        or interest that is solicited, but a conditionally approved 
        disclosure statement shall be mailed not later than 20 days 
        before the date of the hearing on confirmation of the plan; and
            ``(C) the hearing on the disclosure statement may be 
        combined with the hearing on confirmation of a plan.''.

SEC. 432. DEFINITIONS; EFFECT OF DISCHARGE.

    (a) Definitions.--Section 101 of title 11, United States Code, as 
amended by section 402 of this Act, is amended by striking paragraph 
(51C) and inserting the following:
            ``(51C) `small business case' means a case filed under 
        chapter 11 of this title in which the debtor is a small 
        business debtor;
            ``(51D) `small business debtor'--
                    ``(A) subject to subparagraph (B), means a person 
                (including any affiliate of such person that is also a 
                debtor under this title and excluding a person whose 
                primary activity is the business of owning and 
                operating real property and activities incidental 
                thereto) that has aggregate noncontingent, liquidated 
                secured and unsecured debts as of the date of the 
                petition or the order for relief in an amount not more 
                than $3,000,000 (excluding debts owed to 1 or more 
                affiliates or insiders) for a case in which the United 
                States trustee has appointed under section 1102(a)(1) a 
                committee of unsecured creditors that the court has 
                determined is sufficiently active and representative to 
                provide effective oversight of the debtor; and
                    ``(B) does not include any member of a group of 
                affiliated debtors that has aggregate noncontingent 
                liquidated secured and unsecured debts in an amount 
                greater than $4,000,000 (excluding debt owed to 1 or 
                more affiliates or insiders);''.
    (b) Conforming Amendment.--Section 1102(a)(3) of title 11, United 
States Code, is amended by inserting ``debtor'' after ``small 
business''.

SEC. 433. STANDARD FORM DISCLOSURE STATEMENT AND PLAN.

    Within a reasonable period of time after the date of the enactment 
of this Act, the Advisory Committee on Bankruptcy Rules of the Judicial 
Conference of the United States shall propose for adoption standard 
form disclosure statements and plans of reorganization for small 
business debtors (as defined in section 101 of title 11, United States 
Code, as amended by this Act), designed to achieve a practical balance 
between--
            (1) the reasonable needs of the courts, the United States 
        trustee, creditors, and other parties in interest for 
        reasonably complete information; and
            (2) economy and simplicity for debtors.

SEC. 434. UNIFORM NATIONAL REPORTING REQUIREMENTS.

    (a) Reporting Required.--
            (1) In general.--Chapter 3 of title 11, United States Code, 
        is amended by inserting after section 307 the following:
``Sec. 308. Debtor reporting requirements
    ``(1) For purposes of this section, the term `profitability' means, 
with respect to a debtor, the amount of money that the debtor has 
earned or lost during current and recent fiscal periods.
    ``(2) A small business debtor shall file periodic financial and 
other reports containing information including--
            ``(A) the debtor's profitability;
            ``(B) reasonable approximations of the debtor's projected 
        cash receipts and cash disbursements over a reasonable period;
            ``(C) comparisons of actual cash receipts and disbursements 
        with projections in prior reports;
            ``(D)(i) whether the debtor is--
                    ``(I) in compliance in all material respects with 
                postpetition requirements imposed by this title and the 
                Federal Rules of Bankruptcy Procedure; and
                    ``(II) timely filing tax returns and other required 
                government filings and paying taxes and other 
                administrative claims when due; and
            ``(ii) if the debtor is not in compliance with the 
        requirements referred to in clause (i)(I) or filing tax returns 
        and other required government filings and making the payments 
        referred to in clause (i)(II), what the failures are and how, 
        at what cost, and when the debtor intends to remedy such 
        failures; and
            ``(iii) such other matters as are in the best interests of 
        the debtor and creditors, and in the public interest in fair 
        and efficient procedures under chapter 11 of this title.''.
            (2) Clerical amendment.--The table of sections for chapter 
        3 of title 11, United States Code, is amended by inserting 
        after the item relating to section 307 the following:

``308. Debtor reporting requirements.''.

    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect 60 days after the date on which rules are prescribed under 
section 2075 of title 28, United States Code, to establish forms to be 
used to comply with section 308 of title 11, United States Code, as 
added by subsection (a).

SEC. 435. UNIFORM REPORTING RULES AND FORMS FOR SMALL BUSINESS CASES.

    (a) Proposal of Rules and Forms.--The Advisory Committee on 
Bankruptcy Rules of the Judicial Conference of the United States shall 
propose for adoption amended Federal Rules of Bankruptcy Procedure and 
Official Bankruptcy Forms to be used by small business debtors to file 
periodic financial and other reports containing information, including 
information relating to--
            (1) the debtor's profitability;
            (2) the debtor's cash receipts and disbursements; and
            (3) whether the debtor is timely filing tax returns and 
        paying taxes and other administrative claims when due.
    (b) Purpose.--The rules and forms proposed under subsection (a) 
shall be designed to achieve a practical balance among--
            (1) the reasonable needs of the bankruptcy court, the 
        United States trustee, creditors, and other parties in interest 
        for reasonably complete information;
            (2) the small business debtor's interest that required 
        reports be easy and inexpensive to complete; and
            (3) the interest of all parties that the required reports 
        help the small business debtor to understand the small business 
        debtor's financial condition and plan the small business 
        debtor's future.

SEC. 436. DUTIES IN SMALL BUSINESS CASES.

    (a) Duties in Chapter 11 Cases.--Subchapter I of title 11, United 
States Code, as amended by section 321 of this Act, is amended by 
adding at the end the following:
``Sec. 1116. Duties of trustee or debtor in possession in small 
              business cases
    ``In a small business case, a trustee or the debtor in possession, 
in addition to the duties provided in this title and as otherwise 
required by law, shall--
            ``(1) append to the voluntary petition or, in an 
        involuntary case, file within 7 days after the date of the 
        order for relief--
                    ``(A) its most recent balance sheet, statement of 
                operations, cash-flow statement, Federal income tax 
                return; or
                    ``(B) a statement made under penalty of perjury 
                that no balance sheet, statement of operations, or 
                cash-flow statement has been prepared and no Federal 
                tax return has been filed;
            ``(2) attend, through its senior management personnel and 
        counsel, meetings scheduled by the court or the United States 
        trustee, including initial debtor interviews, scheduling 
        conferences, and meetings of creditors convened under section 
        341 unless the court waives that requirement after notice and 
        hearing, upon a finding of extraordinary and compelling 
        circumstances;
            ``(3) timely file all schedules and statements of financial 
        affairs, unless the court, after notice and a hearing, grants 
        an extension, which shall not extend such time period to a date 
        later than 30 days after the date of the order for relief, 
        absent extraordinary and compelling circumstances;
            ``(4) file all postpetition financial and other reports 
        required by the Federal Rules of Bankruptcy Procedure or by 
        local rule of the district court;
            ``(5) subject to section 363(c)(2), maintain insurance 
        customary and appropriate to the industry;
            ``(6)(A) timely file tax returns and other required 
        government filings; and
            ``(B) subject to section 363(c)(2), timely pay all 
        administrative expense tax claims, except those being contested 
        by appropriate proceedings being diligently prosecuted; and
            ``(7) allow the United States trustee, or a designated 
        representative of the United States trustee, to inspect the 
        debtor's business premises, books, and records at reasonable 
        times, after reasonable prior written notice, unless notice is 
        waived by the debtor.''.
    (b) Clerical Amendment.--The table of sections for chapter 11 of 
title 11, United States Code, is amended by adding at the end of the 
matter relating to subchapter I the following:

``1116. Duties of trustee or debtor in possession in small business 
                            cases.''.

SEC. 437. PLAN FILING AND CONFIRMATION DEADLINES.

    Section 1121 of title 11, United States Code, is amended by 
striking subsection (e) and inserting the following:
    ``(e) In a small business case--
            ``(1) only the debtor may file a plan until after 180 days 
        after the date of the order for relief, unless that period is--
                    ``(A) extended as provided by this subsection, 
                after notice and hearing; or
                    ``(B) the court, for cause, orders otherwise;
            ``(2) the plan, and any necessary disclosure statement, 
        shall be filed not later than 300 days after the date of the 
        order for relief; and
            ``(3) the time periods specified in paragraphs (1) and (2), 
        and the time fixed in section 1129(e), within which the plan 
        shall be confirmed, may be extended only if--
                    ``(A) the debtor, after providing notice to parties 
                in interest (including the United States trustee), 
                demonstrates by a preponderance of the evidence that it 
                is more likely than not that the court will confirm a 
                plan within a reasonable period of time;
                    ``(B) a new deadline is imposed at the time the 
                extension is granted; and
                    ``(C) the order extending time is signed before the 
                existing deadline has expired.''.

SEC. 438. PLAN CONFIRMATION DEADLINE.

    Section 1129 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(e) In a small business case, the plan shall be confirmed not 
later than 175 days after the date of the order for relief, unless such 
175-day period is extended as provided in section 1121(e)(3).''.

SEC. 439. DUTIES OF THE UNITED STATES TRUSTEE.

    Section 586(a) of title 28, United States Code, is amended--
            (1) in paragraph (3)--
                    (A) in subparagraph (G), by striking ``and'' at the 
                end;
                    (B) by redesignating subparagraph (H) as 
                subparagraph (I); and
                    (C) by inserting after subparagraph (G) the 
                following:
                    ``(H) in small business cases (as defined in 
                section 101 of title 11), performing the additional 
                duties specified in title 11 pertaining to such 
                cases;'';
            (2) in paragraph (5), by striking ``and'' at the end;
            (3) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (4) by inserting after paragraph (6) the following:
            ``(7) in each of such small business cases--
                    ``(A) conduct an initial debtor interview as soon 
                as practicable after the entry of order for relief but 
                before the first meeting scheduled under section 341(a) 
                of title 11, at which time the United States trustee 
                shall--
                            ``(i) begin to investigate the debtor's 
                        viability;
                            ``(ii) inquire about the debtor's business 
                        plan;
                            ``(iii) explain the debtor's obligations to 
                        file monthly operating reports and other 
                        required reports;
                            ``(iv) attempt to develop an agreed 
                        scheduling order; and
                            ``(v) inform the debtor of other 
                        obligations;
                    ``(B) if determined to be appropriate and 
                advisable, visit the appropriate business premises of 
                the debtor and ascertain the state of the debtor's 
                books and records and verify that the debtor has filed 
                its tax returns; and
                    ``(C) review and monitor diligently the debtor's 
                activities, to identify as promptly as possible whether 
                the debtor will be unable to confirm a plan; and
            ``(8) in any case in which the United States trustee finds 
        material grounds for any relief under section 1112 of title 11, 
        the United States trustee shall apply promptly after making 
        that finding to the court for relief.''.

SEC. 440. SCHEDULING CONFERENCES.

    Section 105(d) of title 11, United States Code, is amended--
            (1) in the matter preceding paragraph (1), by striking
        ``, may'';
            (2) by striking paragraph (1) and inserting the following:
            ``(1) shall hold such status conferences as are necessary 
        to further the expeditious and economical resolution of the 
        case; and''; and
            (3) in paragraph (2), by striking ``unless inconsistent 
        with another provision of this title or with applicable Federal 
        Rules of Bankruptcy Procedure,''.

SEC. 441. SERIAL FILER PROVISIONS.

    Section 362 of title 11, United States Code, is amended--
            (1) in subsection (j), as redesignated by section 305(1) of 
        this Act--
                    (A) by striking ``An'' and inserting ``(1) Except 
                as provided in paragraph (2), an''; and
                    (B) by adding at the end the following:
    ``(2) If such violation is based on an action taken by an entity in 
the good faith belief that subsection (h) applies to the debtor, the 
recovery under paragraph (1) against such entity shall be limited to 
actual damages.''; and
            (2) by inserting after subsection (j) the following:
    ``(k)(1) Except as provided in paragraph (2), the filing of a 
petition under chapter 11 operates as a stay of the acts described in 
subsection (a) only in an involuntary case involving no collusion by 
the debtor with creditors and in which the debtor--
            ``(A) is a debtor in a small business case pending at the 
        time the petition is filed;
            ``(B) was a debtor in a small business case that was 
        dismissed for any reason by an order that became final in the 
        2-year period ending on the date of the order for relief 
        entered with respect to the petition;
            ``(C) was a debtor in a small business case in which a plan 
        was confirmed in the 2-year period ending on the date of the 
        order for relief entered with respect to the petition; or
            ``(D) is an entity that has succeeded to substantially all 
        of the assets or business of a small business debtor described 
        in subparagraph (A), (B), or (C).
    ``(2) Paragraph (1) does not apply to the filing of a petition if 
the debtor proves by a preponderance of the evidence that--
            ``(A) the filing of that petition resulted from 
        circumstances beyond the control of the debtor not foreseeable 
        at the time the case then pending was filed; and
            ``(B) it is more likely than not that the court will 
        confirm a feasible plan, but not a liquidating plan, within a 
        reasonable period of time.''.

SEC. 442. EXPANDED GROUNDS FOR DISMISSAL OR CONVERSION AND APPOINTMENT 
              OF TRUSTEE.

    (a) Expanded Grounds for Dismissal or Conversion.--Section 1112 of 
title 11, United States Code, is amended by striking subsection (b) and 
inserting the following:
    ``(b)(1) Except as provided in paragraph (2), in subsection (c), 
and section 1104(a)(3), on request of a party in interest, and after 
notice and a hearing, the court shall convert a case under this chapter 
to a case under chapter 7 or dismiss a case under this chapter, 
whichever is in the best interest of creditors and the estate, if the 
movant establishes cause.
    ``(2) The relief provided in paragraph (1) shall not be granted if 
the debtor or another party in interest objects and establishes by a 
preponderance of the evidence that--
            ``(A) a plan with a reasonable possibility of being 
        confirmed will be filed within a reasonable period of time; and
            ``(B) if the grounds include an act or omission of the 
        debtor--
                    ``(i) for which there exists a reasonable 
                justification for the act or omission; and
                    ``(ii) which will be cured within a reasonable 
                period of time fixed by the court.
    ``(3) The court shall commence the hearing on any motion under this 
subsection not later than 30 days after filing of the motion, and shall 
decide the motion within 15 days after commencement of the hearing, 
unless the movant expressly consents to a continuance for a specific 
period of time or compelling circumstances prevent the court from 
meeting the time limits established by this paragraph.
    ``(4) For purposes of this subsection, cause includes--
            ``(A) substantial or continuing loss to or diminution of 
        the estate;
            ``(B) gross mismanagement of the estate;
            ``(C) failure to maintain appropriate insurance that poses 
        a risk to the estate or to the public;
            ``(D) unauthorized use of cash collateral harmful to 1 or 
        more creditors;
            ``(E) failure to comply with an order of the court;
            ``(F) repeated failure timely to satisfy any filing or 
        reporting requirement established by this title or by any rule 
        applicable to a case under this chapter;
            ``(G) failure to attend the meeting of creditors convened 
        under section 341(a) or an examination ordered under Rule 2004 
        of the Federal Rules of Bankruptcy Procedure;
            ``(H) failure timely to provide information or attend 
        meetings reasonably requested by the United States trustee;
            ``(I) failure timely to pay taxes due after the date of the 
        order for relief or to file tax returns due after the order for 
        relief;
            ``(J) failure to file a disclosure statement, or to file or 
        confirm a plan, within the time fixed by this title or by order 
        of the court;
            ``(K) failure to pay any fees or charges required under 
        chapter 123 of title 28;
            ``(L) revocation of an order of confirmation under section 
        1144;
            ``(M) inability to effectuate substantial consummation of a 
        confirmed plan;
            ``(N) material default by the debtor with respect to a 
        confirmed plan;
            ``(O) termination of a confirmed plan by reason of the 
        occurrence of a condition specified in the plan; and
            ``(P) failure of the debtor to pay any domestic support 
        obligation that first becomes payable after the date on which 
        the petition is filed.
    ``(5) The court shall commence the hearing on any motion under this 
subsection not later than 30 days after filing of the motion, and shall 
decide the motion within 15 days after commencement of the hearing, 
unless the movant expressly consents to a continuance for a specific 
period of time or compelling circumstances prevent the court from 
meeting the time limits established by this paragraph.''.
    (b) Additional Grounds for Appointment of Trustee.--Section 1104(a) 
of title 11, United States Code, is amended--
            (1) in paragraph (1), by striking ``or'' at the end;
            (2) in paragraph (2), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(3) if grounds exist to convert or dismiss the case under 
        section 1112, but the court determines that the appointment of 
        a trustee or an examiner is in the best interests of creditors 
        and the estate.''.

SEC. 443. STUDY OF OPERATION OF TITLE 11, UNITED STATES CODE, WITH 
              RESPECT TO SMALL BUSINESSES.

    Not later than 2 years after the date of the enactment of this Act, 
the Administrator of the Small Business Administration, in consultation 
with the Attorney General of the United States, the Director of the 
Administrative Office of United States Trustees, and the Director of 
the Administrative Office of the United States Courts, shall--
            (1) conduct a study to determine--
                    (A) the internal and external factors that cause 
                small businesses, especially sole proprietorships, to 
                become debtors in cases under title 11, United States 
                Code, and that cause certain small businesses to 
                successfully complete cases under chapter 11 of such 
                title; and
                    (B) how Federal laws relating to bankruptcy may be 
                made more effective and efficient in assisting small 
                businesses to remain viable; and
            (2) submit to the President pro tempore of the Senate and 
        the Speaker of the House of Representatives a report 
        summarizing that study.

SEC. 444. PAYMENT OF INTEREST.

    Section 362(d)(3) of title 11, United States Code, is amended--
            (1) by inserting ``or 30 days after the court determines 
        that the debtor is subject to this paragraph, whichever is 
        later'' after ``90-day period)''; and
            (2) by striking subparagraph (B) and inserting the 
        following:
                    ``(B) the debtor has commenced monthly payments 
                that--
                            ``(i) may, in the debtor's sole discretion, 
                        notwithstanding section 363(c)(2), be made from 
                        rents or other income generated before or after 
                        the commencement of the case by or from the 
                        property to each creditor whose claim is 
                        secured by such real estate (other than a claim 
                        secured by a judgment lien or by an unmatured 
                        statutory lien); and
                            ``(ii) are in an amount equal to interest 
                        at the then applicable nondefault contract rate 
                        of interest on the value of the creditor's 
                        interest in the real estate; or''.

SEC. 445. TECHNICAL CORRECTION.

    Section 365(b)(2)(D) of title 11, United States Code, is amended by 
striking ``penalty rate or provision'' and inserting ``penalty rate or 
penalty provision''.

                TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS

SEC. 501. PETITION AND PROCEEDINGS RELATED TO PETITION.

    (a) Technical Amendment Relating to Municipalities.--Section 921(d) 
of title 11, United States Code, is amended by inserting ``, 
notwithstanding section 301(b)'' before the period at the end.
    (b) Conforming Amendment.--Section 301 of title 11, United States 
Code, is amended--
            (1) by inserting ``(a)'' before ``A voluntary'';
            (2) by striking the last sentence; and
            (3) by adding at the end the following:
    ``(b) The commencement of a voluntary case under a chapter of this 
title constitutes an order for relief under such chapter.''.

SEC. 502. APPLICABILITY OF OTHER SECTIONS TO CHAPTER 9.

    Section 901(a) of title 11, United States Code, is amended--
            (1) by inserting ``555, 556,'' after ``553,''; and
            (2) by inserting ``559, 560,'' after ``557,''.

           TITLE VI--IMPROVED BANKRUPTCY STATISTICS AND DATA

SEC. 601. AUDIT PROCEDURES.

    (a) Amendments.--Section 586 of title 28, United States Code, is 
amended--
            (1) in subsection (a), by striking paragraph (6) and 
        inserting the following:
            ``(6) make such reports as the Attorney General directs, 
        including the results of audits performed under subsection (f); 
        and''; and
            (2) by adding at the end the following:
    ``(f)(1)(A) The Attorney General shall establish procedures to 
determine the accuracy, veracity, and completeness of petitions, 
schedules, and other information which the debtor is required to 
provide under sections 521 and 1322 of title 11, and, if applicable, 
section 111 of title 11, in individual cases filed under chapter 7 or 
13 of such title.
    ``(B) Those procedures shall--
            ``(i) establish a method of selecting appropriate qualified 
        persons to contract to perform those audits;
            ``(ii) establish a method of randomly selecting cases to be 
        audited, except that not less than 1 out of every 250 cases in 
        each Federal judicial district shall be selected for audit;
            ``(iii) require audits for schedules of income and expenses 
        which reflect greater than average variances from the 
        statistical norm of the district in which the schedules were 
        filed if those variances occur by reason of higher income or 
        higher expenses than the statistical norm of the district in 
        which the schedules were filed; and
            ``(iv) include procedures for providing, not less 
        frequently than annually, public information concerning the 
        aggregate results of the audits referred to in this 
        subparagraph, including the percentage of cases, by district, 
        in which a material misstatement of income or expenditures is 
        reported.
    ``(2) The United States trustee for each district may contract with 
auditors to perform audits in cases designated by the United States 
trustee according to the procedures established under paragraph (1).
    ``(3)(A) The report of each audit conducted under this subsection 
shall be filed with the court and transmitted to the United States 
trustee. Each report shall clearly and conspicuously specify any 
material misstatement of income or expenditures or of assets identified 
by the person performing the audit. In any case where a material 
misstatement of income or expenditures or of assets has been reported, 
the clerk of the bankruptcy court shall give notice of the misstatement 
to the creditors in the case.
    ``(B) If a material misstatement of income or expenditures or of 
assets is reported, the United States trustee shall--
            ``(i) report the material misstatement, if appropriate, to 
        the United States Attorney under section 3057 of title 18; and
            ``(ii) if advisable, take appropriate action, including 
        commencing an adversary proceeding to revoke the debtor's 
        discharge under section 727(d) of title 11.''.
    (b) Amendments to Section 521 of Title 11, United States Code.--
Paragraphs (3) and (4) of section 521(a) of title 11, United States 
Code, as amended by section 315 of this Act, are each amended by 
inserting ``or an auditor appointed under section 586 of title 28'' 
after ``serving in the case'' each place that term appears.
    (c) Amendments to Section 727 of Title 11, United States Code.--
Section 727(d) of title 11, United States Code, is amended--
            (1) in paragraph (2), by striking ``or'' at the end;
            (2) in paragraph (3), by striking the period at the end and 
        inserting ``; or''; and
            (3) by adding at the end the following:
            ``(4) the debtor has failed to explain satisfactorily--
                    ``(A) a material misstatement in an audit performed 
                under section 586(f) of title 28; or
                    ``(B) a failure to make available for inspection 
                all necessary accounts, papers, documents, financial 
                records, files, and any other papers, things, or 
                property belonging to the debtor that are requested for 
                an audit conducted under section 586(f).''.
    (d) Effective Date.--The amendments made by this section shall take 
effect 18 months after the date of enactment of this Act.

SEC. 602. IMPROVED BANKRUPTCY STATISTICS.

    (a) Amendment.--Chapter 6 of title 28, United States Code, is 
amended by adding at the end the following:
``Sec. 159. Bankruptcy statistics
    ``(a) The clerk of each district court shall compile statistics 
regarding individual debtors with primarily consumer debts seeking 
relief under chapters 7, 11, and 13 of title 11. Those statistics shall 
be in a form prescribed by the Director of the Administrative Office of 
the United States Courts (referred to in this section as the `Office').
    ``(b) The Director shall--
            ``(1) compile the statistics referred to in subsection (a);
            ``(2) make the statistics available to the public; and
            ``(3) not later than October 31, 1999, and annually 
        thereafter, prepare, and submit to Congress a report concerning 
        the information collected under subsection (a) that contains an 
        analysis of the information.
    ``(c) The compilation required under subsection (b) shall--
            ``(1) be itemized, by chapter, with respect to title 11;
            ``(2) be presented in the aggregate and for each district; 
        and
            ``(3) include information concerning--
                    ``(A) the total assets and total liabilities of the 
                debtors described in subsection (a), and in each 
                category of assets and liabilities, as reported in the 
                schedules prescribed under section 2075 and filed by 
                those debtors;
                    ``(B) the total current monthly income, projected 
                monthly net income, and average income, and average 
                expenses of those debtors as reported on the schedules 
                and statements that each such debtor files under 
                sections 111, 521, and 1322 of title 11;
                    ``(C) the aggregate amount of debt discharged in 
                the reporting period, determined as the difference 
                between the total amount of debt and obligations of a 
                debtor reported on the schedules and the amount of such 
                debt reported in categories which are predominantly 
                nondischargeable;
                    ``(D) the average period of time between the filing 
                of the petition and the closing of the case;
                    ``(E) for the reporting period--
                            ``(i) the number of cases in which a 
                        reaffirmation was filed; and
                            ``(ii)(I) the total number of 
                        reaffirmations filed;
                            ``(II) of those cases in which a 
                        reaffirmation was filed, the number in which 
                        the debtor was not represented by an attorney; 
                        and
                            ``(III) of the cases under each of 
                        subclauses (I) and (II), the number of cases in 
                        which the reaffirmation was approved by the 
                        court;
                    ``(F) with respect to cases filed under chapter 13 
                of title 11, for the reporting period--
                            ``(i)(I) the number of cases in which a 
                        final order was entered determining the value 
                        of property securing a claim in an amount less 
                        than the amount of the claim; and
                            ``(II) the number of final orders 
                        determining the value of property securing a 
                        claim issued;
                            ``(ii) the number of cases dismissed for 
                        failure to make payments under the plan; and
                            ``(iii) the number of cases in which the 
                        debtor filed another case during the 6-year 
                        period preceding the date of filing;
                    ``(G) the number of cases in which creditors were 
                fined for misconduct and any amount of punitive damages 
                awarded by the court for creditor misconduct; and
                    ``(H) the number of cases in which sanctions under 
                Rule 9011 of the Federal Rules of Bankruptcy Procedure 
                were imposed against debtor's counsel and damages 
                awarded under such rule.''.
    (b) Clerical Amendment.--The table of sections for chapter 6 of 
title 28, United States Code, is amended by adding at the end the 
following:

``159. Bankruptcy statistics.''.

    (c) Effective Date.--The amendments made by this section shall take 
effect 18 months after the date of enactment of this Act.

SEC. 603. UNIFORM RULES FOR THE COLLECTION OF BANKRUPTCY DATA.

    (a) Amendment.--Chapter 39 of title 28, United States Code, is 
amended by inserting after section 589a the following:
``Sec. 589b. Bankruptcy data
    ``(a) Within a reasonable period of time after the effective date 
of this section, the Attorney General of the United States shall issue 
rules requiring uniform forms for (and from time to time thereafter to 
appropriately modify and approve)--
            ``(1) final reports by trustees in cases under chapters 7, 
        12, and 13 of title 11; and
            ``(2) periodic reports by debtors in possession or 
        trustees, as the case may be, in cases under chapter 11 of 
        title 11.
    ``(b) Each report referred to in subsection (a) shall be designed 
(and the requirements as to place and manner of filing shall be 
established) so as to facilitate compilation of data and maximum 
practicable access of the public, by--
            ``(1) physical inspection at 1 or more central filing 
        locations; and
            ``(2) electronic access through the Internet or other 
        appropriate media.
    ``(c)(1) The information required to be filed in the reports 
referred to in subsection (b) shall be information that is--
            ``(A) in the best interests of debtors and creditors, and 
        in the public interest; and
            ``(B) reasonable and adequate information to evaluate the 
        efficiency and practicality of the Federal bankruptcy system.
    ``(2) In issuing rules proposing the forms referred to in 
subsection (a), the Attorney General shall strike the best achievable 
practical balance between--
            ``(A) the reasonable needs of the public for information 
        about the operational results of the Federal bankruptcy system; 
        and
            ``(B) economy, simplicity, and lack of undue burden on 
        persons with a duty to file reports.
    ``(d)(1) Final reports proposed for adoption by trustees under 
chapters 7, 12, and 13 of title 11 shall include with respect to a case 
under such title, by appropriate category--
            ``(A) information about the length of time the case was 
        pending;
            ``(B) assets abandoned;
            ``(C) assets exempted;
            ``(D) receipts and disbursements of the estate;
            ``(E) expenses of administration;
            ``(F) claims asserted;
            ``(G) claims allowed; and
            ``(H) distributions to claimants and claims discharged 
        without payment.
    ``(2) In cases under chapters 12 and 13 of title 11, final reports 
proposed for adoption by trustees shall include--
            ``(A) the date of confirmation of the plan;
            ``(B) each modification to the plan; and
            ``(C) defaults by the debtor in performance under the plan.
    ``(3) The information described in paragraphs (1) and (2) shall be 
in addition to such other matters as are required by law for a final 
report or as the Attorney General, in the discretion of the Attorney 
General, may propose for a final report.
    ``(e)(1) Periodic reports proposed for adoption by trustees or 
debtors in possession under chapter 11 of title 11 shall include--
            ``(A) information about the standard industry 
        classification, published by the Department of Commerce, for 
        the businesses conducted by the debtor;
            ``(B) the length of time the case has been pending;
            ``(C) the number of full-time employees--
                    ``(i) as of the date of the order for relief; and
                    ``(ii) at the end of each reporting period since 
                the case was filed;
            ``(D) cash receipts, cash disbursements, and profitability 
        of the debtor for the most recent period and cumulatively since 
        the date of the order for relief;
            ``(E) compliance with title 11, whether or not tax returns 
        and tax payments since the date of the order for relief have 
        been timely filed and made;
            ``(F) all professional fees approved by the court in the 
        case for the most recent period and cumulatively since the date 
        of the order for relief (separately reported, for the 
        professional fees incurred by or on behalf of the debtor, 
        between those that would have been incurred absent a bankruptcy 
        case and those that would not have been so incurred); and
            ``(G) plans of reorganization filed and confirmed and, with 
        respect thereto, by class, the recoveries of the holders, 
        expressed in aggregate dollar values and, in the case of 
        claims, as a percentage of total claims of the class allowed.
    ``(2) The information described in paragraph (1) shall be in 
addition to such other matters as are required by law for a periodic 
report or as the Attorney General, in the discretion of the Attorney 
General, may propose for a periodic report.''.
    (b) Technical Amendment.--The table of sections for chapter 39 of 
title 28, United States Code, is amended by adding at the end the 
following:

``589b. Bankruptcy data.''.

SEC. 604. SENSE OF CONGRESS REGARDING AVAILABILITY OF BANKRUPTCY DATA.

    It is the sense of Congress that--
            (1) it should be the national policy of the United States 
        that all data held by bankruptcy clerks in electronic form, to 
        the extent such data reflects only public records (as defined 
        in section 107 of title 11, United States Code), should be 
        released in a usable electronic form in bulk to the public 
        subject to such appropriate privacy concerns and safeguards as 
        the Judicial Conference of the United States may determine; and
            (2) there should be established a bankruptcy data system in 
        which--
                    (A) a single set of data definitions and forms are 
                used to collect data nationwide; and
                    (B) data for any particular bankruptcy case are 
                aggregated in the same electronic record.

                  TITLE VII--BANKRUPTCY TAX PROVISIONS

SEC. 701. TREATMENT OF CERTAIN LIENS.

    (a) Treatment of Certain Liens.--Section 724 of title 11, United 
States Code, is amended--
            (1) in subsection (b), in the matter preceding paragraph 
        (1), by inserting ``(other than to the extent that there is a 
        properly perfected unavoidable tax lien arising in connection 
        with an ad valorem tax on real or personal property of the 
        estate)'' after ``under this title'';
            (2) in subsection (b)(2), by inserting ``(except that such 
        expenses, other than claims for wages, salaries, or commissions 
        which arise after the filing of a petition, shall be limited to 
        expenses incurred under chapter 7 of this title and shall not 
        include expenses incurred under chapter 11 of this title)'' 
        after ``507(a)(1)''; and
            (3) by adding at the end the following:
    ``(e) Before subordinating a tax lien on real or personal property 
of the estate, the trustee shall--
            ``(1) exhaust the unencumbered assets of the estate; and
            ``(2) in a manner consistent with section 506(c), recover 
        from property securing an allowed secured claim the reasonable, 
        necessary costs and expenses of preserving or disposing of that 
        property.
    ``(f) Notwithstanding the exclusion of ad valorem tax liens under 
this section and subject to the requirements of subsection (e), the 
following may be paid from property of the estate which secures a tax 
lien, or the proceeds of such property:
            ``(1) Claims for wages, salaries, and commissions that are 
        entitled to priority under section 507(a)(4).
            ``(2) Claims for contributions to an employee benefit plan 
        entitled to priority under section 507(a)(5).''.
    (b) Determination of Tax Liability.--Section 505(a)(2) of title 11, 
United States Code, is amended--
            (1) in subparagraph (A), by striking ``or'' at the end;
            (2) in subparagraph (B), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
            ``(C) the amount or legality of any amount arising in 
        connection with an ad valorem tax on real or personal property 
        of the estate, if the applicable period for contesting or 
        redetermining that amount under any law (other than a 
        bankruptcy law) has expired.''.

SEC. 702. TREATMENT OF FUEL TAX CLAIMS.

    Section 501 of title 11, United States Code, is amended by adding 
at the end the following:
    ``(e) A claim arising from the liability of a debtor for fuel use 
tax assessed consistent with the requirements of section 31705 of title 
49 may be filed by the base jurisdiction designated pursuant to the 
International Fuel Tax Agreement and, if so filed, shall be allowed as 
a single claim.''.

SEC. 703. NOTICE OF REQUEST FOR A DETERMINATION OF TAXES.

    Section 505(b) of title 11, United States Code, is amended--
            (1) in the first sentence, by inserting ``at the address 
        and in the manner designated in paragraph (1)'' after 
        ``determination of such tax'';
            (2) by striking ``(1) upon payment'' and inserting ``(2)(A) 
        upon payment'';
            (3) by striking ``(A) such governmental unit'' and 
        inserting ``(i) such governmental unit'';
            (4) by striking ``(B) such governmental unit'' and 
        inserting ``(ii) such governmental unit'';
            (5) by striking ``(2) upon payment'' and inserting ``(B) 
        upon payment'';
            (6) by striking ``(3) upon payment'' and inserting ``(C) 
        upon payment'';
            (7) by striking ``(b)'' and inserting ``(2)''; and
            (8) by inserting before paragraph (2), as so designated, 
        the following:
    ``(b)(1)(A) The clerk of each district shall maintain a listing 
under which a Federal, State, or local governmental unit responsible 
for the collection of taxes within the district may--
            ``(i) designate an address for service of requests under 
        this subsection; and
            ``(ii) describe where further information concerning 
        additional requirements for filing such requests may be found.
    ``(B) If a governmental unit referred to in subparagraph (A) does 
not designate an address and provide that address to the clerk under 
that subparagraph, any request made under this subsection may be served 
at the address for the filing of a tax return or protest with the 
appropriate taxing authority of that governmental unit.''.

SEC. 704. RATE OF INTEREST ON TAX CLAIMS.

    (a) In General.--Subchapter I of chapter 5 of title 11, United 
States Code, is amended by adding at the end the following:
``Sec. 511. Rate of interest on tax claims
    ``(a) If any provision of this title requires the payment of 
interest on a tax claim or the payment of interest to enable a creditor 
to receive the present value of the allowed amount of a tax claim, the 
rate of interest shall be the rate shall be determined under applicable 
nonbankruptcy law.
    ``(b) In the case of taxes paid under a confirmed plan under this 
title, the rate of interest shall be determined as of the calendar 
month in which the plan is confirmed.''.
    (b) Clerical Amendment.--The table of sections for chapter 5 of 
title 11, United States Code, is amended by inserting after the item 
relating to section 510 the following:

``511. Rate of interest on tax claims.''.

SEC. 705. PRIORITY OF TAX CLAIMS.

    Section 507(a)(8) of title 11, United States Code, is amended--
            (1) in subparagraph (A)--
                    (A) in the matter preceding clause (i), by 
                inserting ``for a taxable year ending on or before the 
                date of filing of the petition'' after ``gross 
                receipts'';
                    (B) in clause (i)--
                            (i) by striking ``for a taxable year ending 
                        on or before the date of filing of the 
                        petition''; and
                            (ii) by inserting before the semicolon at 
                        the end, the following: ``, plus any time 
                        during which the stay of proceedings was in 
                        effect in a prior case under this title or 
                        during which collection was precluded by the 
                        existence of 1 or more confirmed plans under 
                        this title, plus 90 days''; and
                    (C) by striking clause (ii) and inserting the 
                following:
                            ``(ii) assessed within 240 days before the 
                        date of the filing of the petition, exclusive 
                        of--
                                    ``(I) any time during which an 
                                offer in compromise with respect to 
                                that tax was pending or in effect 
                                during that 240-day period, plus 30 
                                days; and
                                    ``(II) any time during which a stay 
                                of proceedings against collections was 
                                in effect in a prior case under this 
                                title during that 240-day period; plus 
                                90 days.''; and
            (2) by adding at the end the following:
                    ``(H) An otherwise applicable time period specified 
                in this paragraph shall be suspended for--
                            ``(i) any period during which a 
                        governmental unit is prohibited under 
                        applicable nonbankruptcy law from collecting a 
                        tax as a result of a request by the debtor for 
                        a hearing and an appeal of any collection 
                        action taken or proposed against the debtor; 
                        plus
                            ``(ii) 90 days.''.

SEC. 706. PRIORITY PROPERTY TAXES INCURRED.

    Section 507(a)(9)(B) of title 11, United States Code, is amended by 
striking ``assessed'' and inserting ``incurred''.

SEC. 707. NO DISCHARGE OF FRAUDULENT TAXES IN CHAPTER 13.

    Section 1328(a)(2) of title 11, United States Code, as amended by 
sections 105, 213, and 314 of this Act, is amended--
            (1) by inserting ``(1)(B), (1)(C),'' after ``paragraph''; 
        and
            (2) by inserting ``and in section 507(a)(8)(C)'' after 
        ``section 523(a)''.

SEC. 708. NO DISCHARGE OF FRAUDULENT TAXES IN CHAPTER 11.

    Section 1141(d) of title 11, United States Code, is amended by 
adding at the end the following:
    ``(5) Notwithstanding paragraph (1), the confirmation of a plan 
does not discharge a debtor that is a corporation from any debt for a 
tax or customs duty with respect to which the debtor--
            ``(A) made a fraudulent return; or
            ``(B) willfully attempted in any manner to evade or defeat 
        that tax or duty.''.

SEC. 709. STAY OF TAX PROCEEDINGS LIMITED TO PREPETITION TAXES.

    Section 362(a)(8) of title 11, United States Code, is amended by 
inserting ``, with respect to a tax liability for a taxable period 
ending before the order for relief under this title'' before the 
semicolon at the end.

SEC. 710. PERIODIC PAYMENT OF TAXES IN CHAPTER 11 CASES.

    Section 1129(a)(9) of title 11, United States Code, is amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C), by striking ``deferred cash 
        payments, over a period not exceeding six years after the date 
        of assessment of such claim,'' and all that follows through the 
        end of the subparagraph, and inserting ``regular installment 
        payments in cash--
                            ``(i) of a total value, as of the effective 
                        date of the plan, equal to the allowed amount 
                        of such claim;
                            ``(ii) with interest thereon calculated at 
                        the rate provided in section 6621(a)(2) of the 
                        Internal Revenue Code of 1986;
                            ``(iii) over a period ending not later than 
                        5 years after the date of the entry of the 
                        order for relief under section 301, 302, or 
                        303; and
                            ``(iv) in a manner not less favorable than 
                        the most favored nonpriority unsecured claim 
                        provided for in the plan (other than cash 
                        payments made to a class of creditors under 
                        section 1122(b)); and''; and
            (3) by adding at the end the following:
                    ``(D) with respect to a secured claim which would 
                otherwise meet the description of an unsecured claim of 
                a governmental unit under section 507(a)(8), but for 
                the secured status of that claim, the holder of that 
                claim will receive on account of that claim, cash 
                payments, in the same manner and over the same period, 
                as prescribed in subparagraph (C).''.

SEC. 711. AVOIDANCE OF STATUTORY TAX LIENS PROHIBITED.

    Section 545(2) of title 11, United States Code, is amended by 
striking the semicolon at the end and inserting ``, except in any case 
in which a purchaser is a purchaser described in section 6323 of the 
Internal Revenue Code of 1986, or in any other similar provision of 
State or local law;''.

SEC. 712. PAYMENT OF TAXES IN THE CONDUCT OF BUSINESS.

    (a) Payment of Taxes Required.--Section 960 of title 28, United 
States Code, is amended--
            (1) by inserting ``(a)'' before ``Any''; and
            (2) by adding at the end the following:
    ``(b) A tax under subsection (a) shall be paid on or before the due 
date of the tax under applicable nonbankruptcy law, unless--
            ``(1) the tax is a property tax secured by a lien against 
        property that is abandoned within a reasonable period of time 
        after the lien attaches by the trustee of a bankruptcy estate 
        under section 554 of title 11; or
            ``(2) payment of the tax is excused under a specific 
        provision of title 11.
    ``(c) In a case pending under chapter 7 of title 11, payment of a 
tax may be deferred until final distribution is made under section 726 
of title 11, if--
            ``(1) the tax was not incurred by a trustee duly appointed 
        under chapter 7 of title 11; or
            ``(2) before the due date of the tax, an order of the court 
        makes a finding of probable insufficiency of funds of the 
        estate to pay in full the administrative expenses allowed under 
        section 503(b) of title 11 that have the same priority in 
        distribution under section 726(b) of title 11 as the priority 
        of that tax.''.
    (b) Payment of Ad Valorem Taxes Required.--Section 503(b)(1)(B)(i) 
of title 11, United States Code, is amended by inserting ``whether 
secured or unsecured, including property taxes for which liability is 
in rem, in personam, or both,'' before ``except''.
    (c) Request for Payment of Administrative Expense Taxes 
Eliminated.--Section 503(b)(1) of title 11, United States Code, is 
amended--
            (1) in subparagraph (B), by striking ``and'' at the end;
            (2) in subparagraph (C), by adding ``and'' at the end; and
            (3) by adding at the end the following:
            ``(D) notwithstanding the requirements of subsection (a), a 
        governmental unit shall not be required to file a request for 
        the payment of an expense described in subparagraph (B) or (C), 
        as a condition of its being an allowed administrative 
        expense;''.
    (d) Payment of Taxes and Fees as Secured Claims.--Section 506 of 
title 11, United States Code, is amended--
            (1) in subsection (b), by inserting ``or State statute'' 
        after ``agreement''; and
            (2) in subsection (c), by inserting ``, including the 
        payment of all ad valorem property taxes with respect to the 
        property'' before the period at the end.

SEC. 713. TARDILY FILED PRIORITY TAX CLAIMS.

    Section 726(a)(1) of title 11, United States Code, is amended by 
striking ``before the date on which the trustee commences distribution 
under this section;'' and inserting the following: ``on or before the 
earlier of--
                    ``(A) the date that is 10 days after the mailing to 
                creditors of the summary of the trustee's final report; 
                or
                    ``(B) the date on which the trustee commences final 
                distribution under this section;''.

SEC. 714. INCOME TAX RETURNS PREPARED BY TAX AUTHORITIES.

    Section 523(a) of title 11, United States Code, is amended--
            (1) in paragraph (1)(B)--
                    (A) in the matter preceding clause (i), by 
                inserting ``or equivalent report or notice,'' after ``a 
                return,'';
                    (B) in clause (i)--
                            (i) by inserting ``or given'' after 
                        ``filed''; and
                            (ii) by striking ``or'' at the end; and
                    (C) in clause (ii)--
                            (i) by inserting ``or given'' after 
                        ``filed''; and
                            (ii) by inserting ``, report, or notice'' 
                        after ``return''; and
            (2) by adding at the end the following flush sentences:
``For purposes of this subsection, the term `return' means a return 
that satisfies the requirements of applicable nonbankruptcy law 
(including applicable filing requirements). Such term includes a return 
prepared pursuant to section 6020(a) of the Internal Revenue Code of 
1986, or similar State or local law, or a written stipulation to a 
judgment or a final order entered by a nonbankruptcy tribunal, but does 
not include a return made pursuant to section 6020(b) of the Internal 
Revenue Code of 1986, or a similar State or local law.''.

SEC. 715. DISCHARGE OF THE ESTATE'S LIABILITY FOR UNPAID TAXES.

    The second sentence of section 505(b) of title 11, United States 
Code, as amended by section 703 of this Act, is amended by inserting 
``the estate,'' after ``misrepresentation,''.

SEC. 716. REQUIREMENT TO FILE TAX RETURNS TO CONFIRM CHAPTER 13 PLANS.

    (a) Filing of Prepetition Tax Returns Required for Plan 
Confirmation.--Section 1325(a) of title 11, United States Code, as 
amended by section 213 of this Act, is amended--
            (1) in paragraph (6), by striking ``and'' at the end;
            (2) in paragraph (7), by striking the period at the end and 
        inserting ``; and''; and
            (3) by inserting after paragraph (7) the following:
            ``(8) if the debtor has filed all applicable Federal, 
        State, and local tax returns as required by section 1308.''.
    (b) Additional Time Permitted for Filing Tax Returns.--
            (1) In general.--Chapter 13 of title 11, United States 
        Code, is amended by adding at the end the following:
``Sec. 1308. Filing of prepetition tax returns
    ``(a) Not later than the day before the date on which the meeting 
of the creditors is first scheduled to be held under section 341(a), 
the debtor shall file with appropriate tax authorities all tax returns 
for all taxable periods ending during the 4-year period ending on the 
date of the filing of the petition.
    ``(b)(1) Subject to paragraph (2), if the tax returns required by 
subsection (a) have not been filed by the date on which the meeting of 
creditors is first scheduled to be held under section 341(a), the 
trustee may hold open that meeting for a reasonable period of time to 
allow the debtor an additional period of time to file any unfiled 
returns, but such additional period of time shall not extend beyond--
            ``(A) for any return that is past due as of the date of the 
        filing of the petition, the date that is 120 days after the 
        date of that meeting; or
            ``(B) for any return that is not past due as of the date of 
        the filing of the petition, the later of--
                    ``(i) the date that is 120 days after the date of 
                that meeting; or
                    ``(ii) the date on which the return is due under 
                the last automatic extension of time for filing that 
                return to which the debtor is entitled, and for which 
                request is timely made, in accordance with applicable 
                nonbankruptcy law.
    ``(2) Upon notice and hearing, and order entered before the tolling 
of any applicable filing period determined under this subsection, if 
the debtor demonstrates by clear and convincing evidence that the 
failure to file a return as required under this subsection is 
attributable to circumstances beyond the control of the debtor, the 
court may extend the filing period established by the trustee under 
this subsection for--
            ``(A) a period of not more than 30 days for returns 
        described in paragraph (1); and
            ``(B) a period not to extend after the applicable extended 
        due date for a return described in paragraph (2).
    ``(c) For purposes of this section, the term `return' includes a 
return prepared pursuant to section 6020 (a) or (b) of the Internal 
Revenue Code of 1986, or a similar State or local law, or a written 
stipulation to a judgment or a final order entered by a nonbankruptcy 
tribunal.''.
            (2) Conforming amendment.--The table of sections for 
        chapter 13 of title 11, United States Code, is amended by 
        inserting after the item relating to section 1307 the 
        following:

``1308. Filing of prepetition tax returns.''.

    (c) Dismissal or Conversion on Failure To Comply.--Section 1307 of 
title 11, United States Code, is amended--
            (1) by redesignating subsections (e) and (f) as subsections 
        (f) and (g), respectively; and
            (2) by inserting after subsection (d), the following:
    ``(e) Upon the failure of the debtor to file a tax return under 
section 1308, on request of a party in interest or the United States 
trustee and after notice and a hearing, the court shall dismiss a case 
or convert a case under this chapter to a case under chapter 7 of this 
title, whichever is in the best interest of the creditors and the 
estate.''.
    (d) Timely Filed Claims.--Section 502(b)(9) of title 11, United 
States Code, is amended by inserting before the period at the end the 
following ``, and except that in a case under chapter 13, a claim of a 
governmental unit for a tax with respect to a return filed under 
section 1308 shall be timely if the claim is filed on or before the 
date that is 60 days after the date on which such return was filed as 
required''.
    (e) Rules for Objections to Claims and to Confirmation.--It is the 
sense of Congress that the Advisory Committee on Bankruptcy Rules of 
the Judicial Conference should, as soon as practicable after the date 
of enactment of this Act, propose for adoption amended Federal Rules of 
Bankruptcy Procedure which provide that--
            (1) notwithstanding the provisions of Rule 3015(f), in 
        cases under chapter 13 of title 11, United States Code, an 
        objection to the confirmation of a plan filed by a governmental 
        unit on or before the date that is 60 days after the date on 
        which the debtor files all tax returns required under sections 
        1308 and 1325(a)(7) of title 11, United States Code, shall be 
        treated for all purposes as if such objection had been timely 
        filed before such confirmation; and
            (2) in addition to the provisions of Rule 3007, in a case 
        under chapter 13 of title 11, United States Code, no objection 
        to a tax with respect to which a return is required to be filed 
        under section 1308 of title 11, United States Code, shall be 
        filed until such return has been filed as required.

SEC. 717. STANDARDS FOR TAX DISCLOSURE.

    Section 1125(a)(1) of title 11, United States Code, is amended--
            (1) by inserting ``including a discussion of the potential 
        material Federal tax consequences of the plan to the debtor, 
        any successor to the debtor, and a hypothetical investor 
        typical of the holders of claims or interests in the case,'' 
        after ``records''; and
            (2) by striking ``a hypothetical reasonable investor 
        typical of holders of claims or interests'' and inserting 
        ``such a hypothetical investor''.

SEC. 718. SETOFF OF TAX REFUNDS.

    Section 362(b) of title 11, United States Code, as amended by 
section 402 of this Act, is amended--
            (1) in paragraph (25), by striking ``or'' at the end;
            (2) in paragraph (26), by striking the period at the end 
        and inserting ``; or''; and
            (3) by inserting after paragraph (26) the following:
            ``(27) under subsection (a), of the setoff under applicable 
        nonbankruptcy law of an income tax refund, by a governmental 
        unit, with respect to a taxable period that ended before the 
        order for relief against an income tax liability for a taxable 
        period that also ended before the order for relief, except that 
        in any case in which the setoff of an income tax refund is not 
        permitted under applicable nonbankruptcy law because of a 
        pending action to determine the amount or legality of a tax 
        liability, the governmental unit may hold the refund pending 
        the resolution of the action, unless the court, upon motion of 
        the trustee and after notice and hearing, grants the taxing 
        authority adequate protection (within the meaning of section 
        361) for the secured claim of that authority in the setoff 
        under section 506(a).''.

SEC. 719. SPECIAL PROVISIONS RELATED TO THE TREATMENT OF STATE AND 
              LOCAL TAXES.

    (a) In General.--Section 346 of title 11, United States Code, is 
amended to read as follows:

``SEC. 346. SPECIAL PROVISIONS RELATED TO THE TREATMENT OF STATE AND 
              LOCAL TAXES.

    ``(a) Whenever the Internal Revenue Code of 1986 provides that a 
separate taxable estate or entity is created in a case concerning a 
debtor under this title, and the income, gain, loss, deductions, and 
credits of such estate shall be taxed to or claimed by the estate, a 
separate taxable estate is also created for purposes of any State and 
local law imposing a tax on or measured by income and such income, 
gain, loss, deductions, and credits shall be taxed to or claimed by the 
estate and may not be taxed to or claimed by the debtor. The preceding 
sentence shall not apply if the case is dismissed. The trustee shall 
make tax returns of income required under any such State or local law.
    ``(b) Whenever the Internal Revenue Code of 1986 provides that no 
separate taxable estate shall be created in a case concerning a debtor 
under this title, and the income, gain, loss, deductions, and credits 
of an estate shall be taxed to or claimed by the debtor, such income, 
gain, loss, deductions, and credits shall be taxed to or claimed by the 
debtor under a State or local law imposing a tax on or measured by 
income and may not be taxed to or claimed by the estate. The trustee 
shall make such tax returns of income of corporations and of 
partnerships as are required under any State or local law, but with 
respect to partnerships, shall make said returns only to the extent 
such returns are also required to be made under such Code. The estate 
shall be liable for any tax imposed on such corporation or partnership, 
but not for any tax imposed on partners or members.
    ``(c) With respect to a partnership or any entity treated as a 
partnership under a State or local law imposing a tax on or measured by 
income that is a debtor in a case under this title, any gain or loss 
resulting from a distribution of property from such partnership, or any 
distributive share of any income, gain, loss, deduction, or credit of a 
partner or member that is distributed, or considered distributed, from 
such partnership, after the commencement of the case, is gain, loss, 
income, deduction, or credit, as the case may be, of the partner or 
member, and if such partner or member is a debtor in a case under this 
title, shall be subject to tax in accordance with subsection (a) or 
(b).
    ``(d) For purposes of any State or local law imposing a tax on or 
measured by income, the taxable period of a debtor in a case under this 
title shall terminate only if and to the extent that the taxable period 
of such debtor terminates under the Internal Revenue Code of 1986.
    ``(e) The estate in any case described in subsection (a) shall use 
the same accounting method as the debtor used immediately before the 
commencement of the case, if such method of accounting complies with 
applicable nonbankruptcy tax law.
    ``(f) For purposes of any State or local law imposing a tax on or 
measured by income, a transfer of property from the debtor to the 
estate or from the estate to the debtor shall not be treated as a 
disposition for purposes of any provision assigning tax consequences to 
a disposition, except to the extent that such transfer is treated as a 
disposition under the Internal Revenue Code of 1986.
    ``(g) Whenever a tax is imposed pursuant to a State or local law 
imposing a tax on or measured by income pursuant to subsection (a) or 
(b), such tax shall be imposed at rates generally applicable to the 
same types of entities under such State or local law.
    ``(h) The trustee shall withhold from any payment of claims for 
wages, salaries, commissions, dividends, interest, or other payments, 
or collect, any amount required to be withheld or collected under 
applicable State or local tax law, and shall pay such withheld or 
collected amount to the appropriate governmental unit at the time and 
in the manner required by such tax law, and with the same priority as 
the claim from which such amount was withheld or collected was paid.
    ``(i)(1) To the extent that any State or local law imposing a tax 
on or measured by income provides for the carryover of any tax 
attribute from one taxable period to a subsequent taxable period, the 
estate shall succeed to such tax attribute in any case in which such 
estate is subject to tax under subsection (a).
    ``(2) After such a case is closed or dismissed, the debtor shall 
succeed to any tax attribute to which the estate succeeded under 
paragraph (1) to the extent consistent with the Internal Revenue Code 
of 1986.
    ``(3) The estate may carry back any loss or tax attribute to a 
taxable period of the debtor that ended before the order for relief 
under this title to the extent that--
            ``(A) applicable State or local tax law provides for a 
        carryback in the case of the debtor; and
            ``(B) the same or a similar tax attribute may be carried 
        back by the estate to such a taxable period of the debtor under 
        the Internal Revenue Code of 1986.
    ``(j)(1) For purposes of any State or local law imposing a tax on 
or measured by income, income is not realized by the estate, the 
debtor, or a successor to the debtor by reason of discharge of 
indebtedness in a case under this title, except to the extent, if any, 
that such income is subject to tax under the Internal Revenue Code of 
1986.
    ``(2) Whenever the Internal Revenue Code of 1986 provides that the 
amount excluded from gross income in respect of the discharge of 
indebtedness in a case under this title shall be applied to reduce the 
tax attributes of the debtor or the estate, a similar reduction shall 
be made under any State or local law imposing a tax on or measured by 
income to the extent such State or local law recognizes such 
attributes. Such State or local law may also provide for the reduction 
of other attributes to the extent that the full amount of income from 
the discharge of indebtedness has not been applied.
    ``(k)(1) Except as provided in this section and section 505, the 
time and manner of filing tax returns and the items of income, gain, 
loss, deduction, and credit of any taxpayer shall be determined under 
applicable nonbankruptcy law.
    ``(2) For Federal tax purposes, the provisions of this section are 
subject to the Internal Revenue Code of 1986 and other applicable 
Federal nonbankruptcy law.''.
    (b) Conforming Amendments.--
            (1) Section 728 of title 11, United States Code, is 
        repealed.
            (2) Section 1146 of title 11, United States Code, is 
        amended by striking subsections (a) and (b) and by 
        redesignating subsections (c) and (d) as subsections (a) and 
        (b), respectively.
            (3) Section 1231 of title 11, United States Code, is 
        amended by striking subsections (a) and (b) and by 
        redesignating subsections (c) and (d) as subsections (a) and 
        (b), respectively.

SEC. 720. DISMISSAL FOR FAILURE TO TIMELY FILE TAX RETURNS.

    Section 521 of title 11, United States Code, as amended by this 
Act, is amended by adding at the end the following:
    ``(k)(1) Notwithstanding any other provision of this title, if the 
debtor fails to file a tax return that becomes due after the 
commencement of the case or to properly obtain an extension of the due 
date for filing such return, the taxing authority may request that the 
court enter an order converting or dismissing the case.
    ``(2) If the debtor does not file the required return or obtain the 
extension referred to in paragraph (1) within 90 days after a request 
is filed by the taxing authority under that paragraph, the court shall 
convert or dismiss the case, whichever is in the best interests of 
creditors and the estate.''.

           TITLE VIII--ANCILLARY AND OTHER CROSS-BORDER CASES

SEC. 801. AMENDMENT TO ADD CHAPTER 15 TO TITLE 11, UNITED STATES CODE.

    (a) In General.--Title 11, United States Code, is amended by 
inserting after chapter 13 the following:

          ``CHAPTER 15--ANCILLARY AND OTHER CROSS-BORDER CASES

``Sec.
``1501. Purpose and scope of application.
                   ``SUBCHAPTER I--GENERAL PROVISIONS

``1502. Definitions.
``1503. International obligations of the United States.
``1504. Commencement of ancillary case.
``1505. Authorization to act in a foreign country.
``1506. Public policy exception.
``1507. Additional assistance.
``1508. Interpretation.
``SUBCHAPTER II--ACCESS OF FOREIGN REPRESENTATIVES AND CREDITORS TO THE 
                                 COURT

``1509. Right of direct access.
``1510. Limited jurisdiction.
``1511. Commencement of case under section 301 or 303.
``1512. Participation of a foreign representative in a case under this 
                            title.
``1513. Access of foreign creditors to a case under this title.
``1514. Notification to foreign creditors concerning a case under this 
                            title.
    ``SUBCHAPTER III--RECOGNITION OF A FOREIGN PROCEEDING AND RELIEF

``1515. Application for recognition of a foreign proceeding.
``1516. Presumptions concerning recognition.
``1517. Order recognizing a foreign proceeding.
``1518. Subsequent information.
``1519. Relief that may be granted upon petition for recognition of a 
                            foreign proceeding.
``1520. Effects of recognition of a foreign main proceeding.
``1521. Relief that may be granted upon recognition of a foreign 
                            proceeding.
``1522. Protection of creditors and other interested persons.
``1523. Actions to avoid acts detrimental to creditors.
``1524. Intervention by a foreign representative.
     ``SUBCHAPTER IV--COOPERATION WITH FOREIGN COURTS AND FOREIGN 
                            REPRESENTATIVES

``1525. Cooperation and direct communication between the court and 
                            foreign courts or foreign representatives.
``1526. Cooperation and direct communication between the trustee and 
                            foreign courts or foreign representatives.
``1527. Forms of cooperation.
                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``1528. Commencement of a case under this title after recognition of a 
                            foreign main proceeding.
``1529. Coordination of a case under this title and a foreign 
                            proceeding.
``1530. Coordination of more than 1 foreign proceeding.
``1531. Presumption of insolvency based on recognition of a foreign 
                            main proceeding.
``1532. Rule of payment in concurrent proceedings.
``Sec. 1501. Purpose and scope of application
    ``(a) The purpose of this chapter is to incorporate the Model Law 
on Cross-Border Insolvency so as to provide effective mechanisms for 
dealing with cases of cross-border insolvency with the objectives of--
            ``(1) cooperation between--
                    ``(A) United States courts, United States Trustees, 
                trustees, examiners, debtors, and debtors in 
                possession; and
                    ``(B) the courts and other competent authorities of 
                foreign countries involved in cross-border insolvency 
                cases;
            ``(2) greater legal certainty for trade and investment;
            ``(3) fair and efficient administration of cross-border 
        insolvencies that protects the interests of all creditors, and 
        other interested entities, including the debtor;
            ``(4) protection and maximization of the value of the 
        debtor's assets; and
            ``(5) facilitation of the rescue of financially troubled 
        businesses, thereby protecting investment and preserving 
        employment.
    ``(b) This chapter applies if--
            ``(1) assistance is sought in the United States by a 
        foreign court or a foreign representative in connection with a 
        foreign proceeding;
            ``(2) assistance is sought in a foreign country in 
        connection with a case under this title;
            ``(3) a foreign proceeding and a case under this title with 
        respect to the same debtor are taking place concurrently; or
            ``(4) creditors or other interested persons in a foreign 
        country have an interest in requesting the commencement of, or 
        participating in, a case or proceeding under this title.
    ``(c) This chapter does not apply to--
            ``(1) a proceeding concerning an entity identified by 
        exclusion in subsection 109(b);
            ``(2) an individual, or to an individual and such 
        individual's spouse, who have debts within the limits specified 
        in section 109(e) and who are citizens of the United States or 
        aliens lawfully admitted for permanent residence in the United 
        States; or
            ``(3) an entity subject to a proceeding under the 
        Securities Investor Protection Act of 1970 (84 Stat. 1636 et 
        seq.), a stockbroker subject to subchapter III of chapter 7 of 
        this title, or a commodity broker subject to subchapter IV of 
        chapter 7 of this title.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``Sec. 1502. Definitions
    ``For the purposes of this chapter, the term--
            ``(1) `debtor' means an entity that is the subject of a 
        foreign proceeding;
            ``(2) `establishment' means any place of operations where 
        the debtor carries out a nontransitory economic activity;
            ``(3) `foreign court' means a judicial or other authority 
        competent to control or supervise a foreign proceeding;
            ``(4) `foreign main proceeding' means a foreign proceeding 
        taking place in the country where the debtor has the center of 
        its main interests;
            ``(5) `foreign nonmain proceeding' means a foreign 
        proceeding, other than a foreign main proceeding, taking place 
        in a country where the debtor has an establishment;
            ``(6) `trustee' includes a trustee, a debtor in possession 
        in a case under any chapter of this title, or a debtor under 
        chapter 9 of this title; and
            ``(7) `within the territorial jurisdiction of the United 
        States' when used with reference to property of a debtor refers 
        to tangible property located within the territory of the United 
        States and intangible property deemed under applicable 
        nonbankruptcy law to be located within that territory, 
        including any property subject to attachment or garnishment 
        that may properly be seized or garnished by an action in a 
        Federal or State court in the United States.
``Sec. 1503. International obligations of the United States
    ``To the extent that this chapter conflicts with an obligation of 
the United States arising out of any treaty or other form of agreement 
to which it is a party with 1 or more other countries, the requirements 
of the treaty or agreement prevail.
``Sec. 1504. Commencement of ancillary case
    ``A case under this chapter is commenced by the filing of a 
petition for recognition of a foreign proceeding under section 1515.
``Sec. 1505. Authorization to act in a foreign country
    ``A trustee or another entity, including an examiner, may be 
authorized by the court to act in a foreign country on behalf of an 
estate created under section 541. An entity authorized to act under 
this section may act in any way permitted by the applicable foreign 
law.
``Sec. 1506. Public policy exception
    ``Nothing in this chapter prevents the court from refusing to take 
an action governed by this chapter if the action would be manifestly 
contrary to the public policy of the United States.
``Sec. 1507. Additional assistance
    ``(a) Subject to the specific limitations under other provisions of 
this chapter, the court, upon recognition of a foreign proceeding, may 
provide additional assistance to a foreign representative under this 
title or under other laws of the United States.
    ``(b) In determining whether to provide additional assistance under 
this title or under other laws of the United States, the court shall 
consider whether such additional assistance, consistent with the 
principles of comity, will reasonably assure--
            ``(1) just treatment of all holders of claims against or 
        interests in the debtor's property;
            ``(2) protection of claim holders in the United States 
        against prejudice and inconvenience in the processing of claims 
        in such foreign proceeding;
            ``(3) prevention of preferential or fraudulent dispositions 
        of property of the debtor;
            ``(4) distribution of proceeds of the debtor's property 
        substantially in accordance with the order prescribed by this 
        title; and
            ``(5) if appropriate, the provision of an opportunity for a 
        fresh start for the individual that such foreign proceeding 
        concerns.
``Sec. 1508. Interpretation
    ``In interpreting this chapter, the court shall consider its 
international origin, and the need to promote an application of this 
chapter that is consistent with the application of similar statutes 
adopted by foreign jurisdictions.

``SUBCHAPTER II--ACCESS OF FOREIGN REPRESENTATIVES AND CREDITORS TO THE 
                                 COURT

``Sec. 1509. Right of direct access
    ``(a) A foreign representative is entitled to commence a case under 
section 1504 by filing a petition for recognition under section 1515, 
and upon recognition, to apply directly to other Federal and State 
courts for appropriate relief in those courts.
    ``(b) Upon recognition, and subject to section 1510, a foreign 
representative shall have the capacity to sue and be sued, and shall be 
subject to the laws of the United States of general applicability.
    ``(c) Subject to section 1510, a foreign representative is subject 
to laws of general application.
    ``(d) Recognition under this chapter is prerequisite to the 
granting of comity or cooperation to a foreign representative in any 
Federal or State court in the United States. Any request for comity or 
cooperation by a foreign representative in any court shall be 
accompanied by a sworn statement setting forth whether recognition 
under section 1515 has been sought and the status of any such petition.
    ``(e) Upon denial of recognition under this chapter, the court may 
issue appropriate orders necessary to prevent an attempt to obtain 
comity or cooperation from courts in the United States without such 
recognition.
``Sec. 1510. Limited jurisdiction
    ``The sole fact that a foreign representative files a petition 
under section 1515 does not subject the foreign representative to the 
jurisdiction of any court in the United States for any other purpose.
``Sec. 1511. Commencement of case under section 301 or 303
    ``(a) Upon recognition, a foreign representative may commence--
            ``(1) an involuntary case under section 303; or
            ``(2) a voluntary case under section 301 or 302, if the 
        foreign proceeding is a foreign main proceeding.
    ``(b) The petition commencing a case under subsection (a) must be 
accompanied by a statement describing the petition for recognition and 
its current status. The court where the petition for recognition has 
been filed must be advised of the foreign representative's intent to 
commence a case under subsection (a) prior to such commencement.
``Sec. 1512. Participation of a foreign representative in a case under 
              this title
    ``Upon recognition of a foreign proceeding, the foreign 
representative in that proceeding is entitled to participate as a party 
in interest in a case regarding the debtor under this title.
``Sec. 1513. Access of foreign creditors to a case under this title
    ``(a) Foreign creditors have the same rights regarding the 
commencement of, and participation in, a case under this title as 
domestic creditors.
    ``(b)(1) Subsection (a) does not change or codify law in effect on 
the date of enactment of this chapter as to the priority of claims 
under section 507 or 726, except that the claim of a foreign creditor 
under section 507 or 726 shall not be given a lower priority than that 
of general unsecured claims without priority solely because the holder 
of such claim is a foreign creditor.
    ``(2)(A) Subsection (a) and paragraph (1) do not change or codify 
law in effect on the date of enactment of this chapter as to the 
allowability of foreign revenue claims or other foreign public law 
claims in a proceeding under this title.
    ``(B) Allowance and priority as to a foreign tax claim or other 
foreign public law claim shall be governed by any applicable tax treaty 
of the United States, under the conditions and circumstances specified 
therein.
``Sec. 1514. Notification to foreign creditors concerning a case under 
              this title
    ``(a) Whenever in a case under this title notice is to be given to 
creditors generally or to any class or category of creditors, such 
notice shall also be given to the known creditors generally, or to 
creditors in the notified class or category, that do not have addresses 
in the United States. The court may order that appropriate steps be 
taken with a view to notifying any creditor whose address is not yet 
known.
    ``(b) Such notification to creditors with foreign addresses 
described in subsection (a) shall be given individually, unless the 
court considers that, under the circumstances, some other form of 
notification would be more appropriate. No letters rogatory or other 
similar formality is required.
    ``(c) When a notification of commencement of a case is to be given 
to foreign creditors, the notification shall--
            ``(1) indicate the time period for filing proofs of claim 
        and specify the place for their filing;
            ``(2) indicate whether secured creditors need to file their 
        proofs of claim; and
            ``(3) contain any other information required to be included 
        in such a notification to creditors pursuant to this title and 
        the orders of the court.
    ``(d) Any rule of procedure or order of the court as to notice or 
the filing of a claim shall provide such additional time to creditors 
with foreign addresses as is reasonable under the circumstances.

    ``SUBCHAPTER III--RECOGNITION OF A FOREIGN PROCEEDING AND RELIEF

``Sec. 1515. Application for recognition of a foreign proceeding
    ``(a) A foreign representative applies to the court for recognition 
of the foreign proceeding in which the foreign representative has been 
appointed by filing a petition for recognition.
    ``(b) A petition for recognition shall be accompanied by--
            ``(1) a certified copy of the decision commencing the 
        foreign proceeding and appointing the foreign representative;
            ``(2) a certificate from the foreign court affirming the 
        existence of the foreign proceeding and of the appointment of 
        the foreign representative; or
            ``(3) in the absence of evidence referred to in paragraphs 
        (1) and (2), any other evidence acceptable to the court of the 
        existence of the foreign proceeding and of the appointment of 
        the foreign representative.
    ``(c) A petition for recognition shall also be accompanied by a 
statement identifying all foreign proceedings with respect to the 
debtor that are known to the foreign representative.
    ``(d) The documents referred to in paragraphs (1) and (2) of 
subsection (b) must be translated into English. The court may require a 
translation into English of additional documents.
``Sec. 1516. Presumptions concerning recognition
    ``(a) If the decision or certificate referred to in section 1515(b) 
indicates that the foreign proceeding is a foreign proceeding as 
defined in section 101 and that the person or body is a foreign 
representative as defined in section 101, the court is entitled to so 
presume.
    ``(b) The court is entitled to presume that documents submitted in 
support of the petition for recognition are authentic, whether or not 
they have been legalized.
    ``(c) In the absence of evidence to the contrary, the debtor's 
registered office, or habitual residence in the case of an individual, 
is presumed to be the center of the debtor's main interests.
``Sec. 1517. Order recognizing a foreign proceeding
    ``(a) Subject to section 1506, after notice and a hearing an order 
recognizing a foreign proceeding shall be entered if--
            ``(1) the foreign proceeding is a foreign main proceeding 
        or foreign nonmain proceeding within the meaning of section 
        1502;
            ``(2) the foreign representative applying for recognition 
        is a person or body as defined in section 101; and
            ``(3) the petition meets the requirements of section 1515.
    ``(b) The foreign proceeding shall be recognized--
            ``(1) as a foreign main proceeding if it is taking place in 
        the country where the debtor has the center of its main 
        interests; or
            ``(2) as a foreign nonmain proceeding if the debtor has an 
        establishment within the meaning of section 1502 in the foreign 
        country where the proceeding is pending.
    ``(c) A petition for recognition of a foreign proceeding shall be 
decided upon at the earliest possible time. Entry of an order 
recognizing a foreign proceeding shall constitute recognition under 
this chapter.
    ``(d) The provisions of this subchapter do not prevent modification 
or termination of recognition if it is shown that the grounds for 
granting it were fully or partially lacking or have ceased to exist, 
but in considering such action the court shall give due weight to 
possible prejudice to parties that have relied upon the granting of 
recognition. The case under this chapter may be closed in the manner 
prescribed for a case under section 350.
``Sec. 1518. Subsequent information
    ``After the petition for recognition of the foreign proceeding is 
filed, the foreign representative shall file with the court promptly a 
notice of change of status concerning--
            ``(1) any substantial change in the status of the foreign 
        proceeding or the status of the foreign representative's 
        appointment; and
            ``(2) any other foreign proceeding regarding the debtor 
        that becomes known to the foreign representative.
``Sec. 1519. Relief that may be granted upon petition for recognition 
              of a foreign proceeding
    ``(a) Beginning on the date on which a petition for recognition is 
filed and ending on the date on which the petition is decided upon, the 
court may, at the request of the foreign representative, where relief 
is urgently needed to protect the assets of the debtor or the interests 
of the creditors, grant relief of a provisional nature, including--
            ``(1) staying execution against the debtor's assets;
            ``(2) entrusting the administration or realization of all 
        or part of the debtor's assets located in the United States to 
        the foreign representative or another person authorized by the 
        court, including an examiner, in order to protect and preserve 
        the value of assets that, by their nature or because of other 
        circumstances, are perishable, susceptible to devaluation, or 
        otherwise in jeopardy; and
            ``(3) any relief referred to in paragraph (3), (4), or (7) 
        of section 1521(a).
    ``(b) Unless extended under section 1521(a)(6), the relief granted 
under this section terminates when the petition for recognition is 
decided upon.
    ``(c) It is a ground for denial of relief under this section that 
such relief would interfere with the administration of a foreign main 
proceeding.
    ``(d) The court may not enjoin a police or regulatory act of a 
governmental unit, including a criminal action or proceeding, under 
this section.
    ``(e) The standards, procedures, and limitations applicable to an 
injunction shall apply to relief under this section.
``Sec. 1520. Effects of recognition of a foreign main proceeding
    ``(a) Upon recognition of a foreign proceeding that is a foreign 
main proceeding--
            ``(1) section 362 applies with respect to the debtor and 
        that property of the debtor that is within the territorial 
        jurisdiction of the United States;
            ``(2) a transfer, an encumbrance, or any other disposition 
        of an interest of the debtor in property within the territorial 
        jurisdiction of the United States is restrained as and to the 
        extent that is provided for property of an estate under 
        sections 363, 549, and 552; and
            ``(3) unless the court orders otherwise, the foreign 
        representative may operate the debtor's business and may 
        exercise the powers of a trustee under section 549, subject to 
        sections 363 and 552.
    ``(b) The scope, and the modification or termination, of the stay 
and restraints referred to in subsection (a) are subject to the 
exceptions and limitations provided in subsections (b), (c), and (d) of 
section 362, subsections (b) and (c) of section 363, and sections 552, 
555 through 557, 559, and 560.
    ``(c) Subsection (a) does not affect the right to commence 
individual actions or proceedings in a foreign country to the extent 
necessary to preserve a claim against the debtor.
    ``(d) Subsection (a) does not affect the right of a foreign 
representative or an entity to file a petition commencing a case under 
this title or the right of any party to file claims or take other 
proper actions in such a case.
``Sec. 1521. Relief that may be granted upon recognition of a foreign 
              proceeding
    ``(a) Upon recognition of a foreign proceeding, whether main or 
nonmain, where necessary to effectuate the purpose of this chapter and 
to protect the assets of the debtor or the interests of the creditors, 
the court may, at the request of the foreign representative, grant any 
appropriate relief, including--
            ``(1) staying the commencement or continuation of 
        individual actions or individual proceedings concerning the 
        debtor's assets, rights, obligations or liabilities to the 
        extent the actions or proceedings have not been stayed under 
        section 1520(a);
            ``(2) staying execution against the debtor's assets to the 
        extent the execution has not been stayed under section 1520(a);
            ``(3) suspending the right to transfer, encumber or 
        otherwise dispose of any assets of the debtor to the extent 
        that right has not been suspended under section 1520(a);
            ``(4) providing for the examination of witnesses, the 
        taking of evidence or the delivery of information concerning 
        the debtor's assets, affairs, rights, obligations or 
        liabilities;
            ``(5) entrusting the administration or realization of all 
        or part of the debtor's assets within the territorial 
        jurisdiction of the United States to the foreign representative 
        or another person, including an examiner, authorized by the 
        court;
            ``(6) extending relief granted under section 1519(a); and
            ``(7) granting any additional relief that may be available 
        to a trustee, except for relief available under sections 522, 
        544, 545, 547, 548, 550, and 724(a).
    ``(b) Upon recognition of a foreign proceeding, whether main or 
nonmain, the court may, at the request of the foreign representative, 
entrust the distribution of all or part of the debtor's assets located 
in the United States to the foreign representative or another person, 
including an examiner, authorized by the court, if the court is 
satisfied that the interests of creditors in the United States are 
sufficiently protected.
    ``(c) In granting relief under this section to a representative of 
a foreign nonmain proceeding, the court must be satisfied that the 
relief relates to assets that, under the law of the United States, 
should be administered in the foreign nonmain proceeding or concerns 
information required in that proceeding.
    ``(d) The court may not enjoin a police or regulatory act of a 
governmental unit, including a criminal action or proceeding, under 
this section.
    ``(e) The standards, procedures, and limitations applicable to an 
injunction shall apply to relief under paragraphs (1), (2), (3), and 
(6) of subsection (a).
``Sec. 1522. Protection of creditors and other interested persons
    ``(a) The court may grant relief under section 1519 or 1521, or may 
modify or terminate relief under subsection (c), only if the interests 
of the creditors and other interested entities, including the debtor, 
are sufficiently protected.
    ``(b) The court may subject relief granted under section 1519 or 
1521, or the operation of the debtor's business under section 
1520(a)(2), to conditions that the court considers to be appropriate, 
including the giving of security or the filing of a bond.
    ``(c) The court may, at the request of the foreign representative 
or an entity affected by relief granted under section 1519 or 1521, or 
at its own motion, modify or terminate the relief referred to in 
subsection (b).
    ``(d) Section 1104(d) shall apply to the appointment of an examiner 
under this chapter. Any examiner shall comply with the qualification 
requirements imposed on a trustee by section 322.
``Sec. 1523. Actions to avoid acts detrimental to creditors
    ``(a) Upon recognition of a foreign proceeding, the foreign 
representative has standing in a case concerning the debtor pending 
under another chapter of this title to initiate actions under sections 
522, 544, 545, 547, 548, 550, and 724(a).
    ``(b) In any case in which the foreign proceeding is a foreign 
nonmain proceeding, the court must be satisfied that an action under 
subsection (a) relates to assets that, under United States law, should 
be administered in the foreign nonmain proceeding.
``Sec. 1524. Intervention by a foreign representative
    ``Upon recognition of a foreign proceeding, the foreign 
representative may intervene in any proceedings in a State or Federal 
court in the United States in which the debtor is a party.

     ``SUBCHAPTER IV--COOPERATION WITH FOREIGN COURTS AND FOREIGN 
                            REPRESENTATIVES

``Sec. 1525. Cooperation and direct communication between the court and 
              foreign courts or foreign representatives
    ``(a) Consistent with section 1501, the court shall cooperate to 
the maximum extent possible with foreign courts or foreign 
representatives, either directly or through the trustee.
    ``(b) The court is entitled to communicate directly with, or to 
request information or assistance directly from, foreign courts or 
foreign representatives, subject to the rights of parties in interest 
to notice and participation.
``Sec. 1526. Cooperation and direct communication between the trustee 
              and foreign courts or foreign representatives
    ``(a) Consistent with section 1501, the trustee or other person, 
including an examiner, authorized by the court, shall, subject to the 
supervision of the court, cooperate to the maximum extent possible with 
foreign courts or foreign representatives.
    ``(b) The trustee or other person, including an examiner, 
authorized by the court is entitled, subject to the supervision of the 
court, to communicate directly with foreign courts or foreign 
representatives.
``Sec. 1527. Forms of cooperation
    ``Cooperation referred to in sections 1525 and 1526 may be 
implemented by any appropriate means, including--
            ``(1) appointment of a person or body, including an 
        examiner, to act at the direction of the court;
            ``(2) communication of information by any means considered 
        appropriate by the court;
            ``(3) coordination of the administration and supervision of 
        the debtor's assets and affairs;
            ``(4) approval or implementation of agreements concerning 
        the coordination of proceedings; and
            ``(5) coordination of concurrent proceedings regarding the 
        same debtor.

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``Sec. 1528. Commencement of a case under this title after recognition 
              of a foreign main proceeding
    ``After recognition of a foreign main proceeding, a case under 
another chapter of this title may be commenced only if the debtor has 
assets in the United States. The effects of such case shall be 
restricted to the assets of the debtor that are within the territorial 
jurisdiction of the United States and, to the extent necessary to 
implement cooperation and coordination under sections 1525, 1526, and 
1527, to other assets of the debtor that are within the jurisdiction of 
the court under sections 541(a), and 1334(e) of title 28, to the extent 
that such other assets are not subject to the jurisdiction and control 
of a foreign proceeding that has been recognized under this chapter.
``Sec. 1529. Coordination of a case under this title and a foreign 
              proceeding
    ``In any case in which a foreign proceeding and a case under 
another chapter of this title are taking place concurrently regarding 
the same debtor, the court shall seek cooperation and coordination 
under sections 1525, 1526, and 1527, and the following shall apply:
            ``(1) If the case in the United States is taking place at 
        the time the petition for recognition of the foreign proceeding 
        is filed--
                    ``(A) any relief granted under sections 1519 or 
                1521 must be consistent with the relief granted in the 
                case in the United States; and
                    ``(B) even if the foreign proceeding is recognized 
                as a foreign main proceeding, section 1520 does not 
                apply.
            ``(2) If a case in the United States under this title 
        commences after recognition, or after the filing of the 
        petition for recognition, of the foreign proceeding--
                    ``(A) any relief in effect under sections 1519 or 
                1521 shall be reviewed by the court and shall be 
                modified or terminated if inconsistent with the case in 
                the United States; and
                    ``(B) if the foreign proceeding is a foreign main 
                proceeding, the stay and suspension referred to in 
                section 1520(a) shall be modified or terminated if 
                inconsistent with the relief granted in the case in the 
                United States.
            ``(3) In granting, extending, or modifying relief granted 
        to a representative of a foreign nonmain proceeding, the court 
        must be satisfied that the relief relates to assets that, under 
        the law of the United States, should be administered in the 
        foreign nonmain proceeding or concerns information required in 
        that proceeding.
            ``(4) In achieving cooperation and coordination under 
        sections 1528 and 1529, the court may grant any of the relief 
        authorized under section 305.
``Sec. 1530. Coordination of more than 1 foreign proceeding
    ``In matters referred to in section 1501, with respect to more than 
1 foreign proceeding regarding the debtor, the court shall seek 
cooperation and coordination under sections 1525, 1526, and 1527, and 
the following shall apply:
            ``(1) Any relief granted under section 1519 or 1521 to a 
        representative of a foreign nonmain proceeding after 
        recognition of a foreign main proceeding must be consistent 
        with the foreign main proceeding.
            ``(2) If a foreign main proceeding is recognized after 
        recognition, or after the filing of a petition for recognition, 
        of a foreign nonmain proceeding, any relief in effect under 
        section 1519 or 1521 shall be reviewed by the court and shall 
        be modified or terminated if inconsistent with the foreign main 
        proceeding.
            ``(3) If, after recognition of a foreign nonmain 
        proceeding, another foreign nonmain proceeding is recognized, 
        the court shall grant, modify, or terminate relief for the 
        purpose of facilitating coordination of the proceedings.
``Sec. 1531. Presumption of insolvency based on recognition of a 
              foreign main proceeding
    ``In the absence of evidence to the contrary, recognition of a 
foreign main proceeding is for the purpose of commencing a proceeding 
under section 303, proof that the debtor is generally not paying its 
debts as such debts become due.
``Sec. 1532. Rule of payment in concurrent proceedings
    ``Without prejudice to secured claims or rights in rem, a creditor 
who has received payment with respect to its claim in a foreign 
proceeding pursuant to a law relating to insolvency may not receive a 
payment for the same claim in a case under any other chapter of this 
title regarding the debtor, so long as the payment to other creditors 
of the same class is proportionately less than the payment the creditor 
has already received.''.
    (b) Clerical Amendment.--The table of chapters for title 11, United 
States Code, is amended by inserting after the item relating to chapter 
13 the following:

``15. Ancillary and Other Cross-Border Cases................    1501''.

SEC. 802. AMENDMENTS TO OTHER CHAPTERS IN TITLE 11, UNITED STATES CODE.

    (a) Applicability of Chapters.--Section 103 of title 11, United 
States Code, is amended--
            (1) in subsection (a), by inserting before the period the 
        following: ``, and this chapter, sections 307, 304, 555 through 
        557, 559, and 560 apply in a case under chapter 15''; and
            (2) by adding at the end the following:
    ``(j) Chapter 15 applies only in a case under such chapter, except 
that--
            ``(1) sections 1513 and 1514 apply in all cases under this 
        title; and
            ``(2) section 1505 applies to trustees and to any other 
        entity (including an examiner) authorized by the court under 
        chapter 7, 11, or 12, to debtors in possession under chapter 11 
        or 12, and to debtors under chapter 9 who are authorized to act 
        under section 1505.''.
    (b) Definitions.--Paragraphs (23) and (24) of section 101 of title 
11, United States Code, are amended to read as follows:
            ``(23) `foreign proceeding' means a collective judicial or 
        administrative proceeding in a foreign country, including an 
        interim proceeding, pursuant to a law relating to insolvency in 
        which proceeding the assets and affairs of the debtor are 
        subject to control or supervision by a foreign court, for the 
        purpose of reorganization or liquidation;
            ``(24) `foreign representative' means a person or body, 
        including a person or body appointed on an interim basis, 
        authorized in a foreign proceeding to administer the 
        reorganization or the liquidation of the debtor's assets or 
        affairs or to act as a representative of the foreign 
        proceeding;''.
    (c) Amendments to Title 28, United States Code.--
            (1) Procedures.--Section 157(b)(2) of title 28, United 
        States Code, is amended--
                    (A) in subparagraph (N), by striking ``and'' at the 
                end;
                    (B) in subparagraph (O), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(P) recognition of foreign proceedings and other matters 
        under chapter 15 of title 11.''.
            (2) Bankruptcy cases and proceedings.--Section 1334(c)(1) 
        of title 28, United States Code, is amended by striking 
        ``Nothing in'' and inserting ``Except with respect to a case 
        under chapter 15 of title 11, nothing in''.
            (3) Duties of trustees.--Section 586(a)(3) of title 28, 
        United States Code, is amended by inserting ``15,'' after 
        ``chapter''.

SEC. 803. CLAIMS RELATING TO INSURANCE DEPOSITS IN CASES ANCILLARY TO 
              FOREIGN PROCEEDINGS.

    Section 304 of title 11, United States Code, is amended to read as 
follows:
``Sec. 304. Cases ancillary to foreign proceedings
    ``(a) For purposes of this section--
            ``(1) the term `domestic insurance company' means a 
        domestic insurance company, as such term is used in section 
        109(b)(2);
            ``(2) the term `foreign insurance company' means a foreign 
        insurance company, as such term is used in section 109(b)(3);
            ``(3) the term `United States claimant' means a beneficiary 
        of any deposit referred to in subsection (b) or any 
        multibeneficiary trust referred to in subsection (b);
            ``(4) the term `United States creditor' means, with respect 
        to a foreign insurance company--
                    ``(i) a United States claimant; or
                    ``(ii) any business entity that operates in the 
                United States and that is a creditor; and
            ``(5) the term `United States policyholder' means a holder 
        of an insurance policy issued in the United States.
    ``(b) The court may not grant relief under chapter 15 of this title 
with respect to any deposit, escrow, trust fund, or other security 
required or permitted under any applicable State insurance law or 
regulation for the benefit of claim holders in the United States.''.

                TITLE IX--FINANCIAL CONTRACT PROVISIONS

SEC. 901. BANKRUPTCY CODE AMENDMENTS.

    (a) Definitions of Forward Contract, Repurchase Agreement, 
Securities Clearing Agency, Swap Agreement, Commodity Contract, and 
Securities Contract.--Title 11, United States Code, is amended--
            (1) in section 101--
                    (A) in paragraph (25)--
                            (i) by striking ``means a contract'' and 
                        inserting ``means--
                    ``(A) a contract'';
                            (ii) by striking ``, or any combination 
                        thereof or option thereon;'' and inserting ``, 
                        or any other similar agreement;''; and
                            (iii) by adding at the end the following:
                    ``(B) a combination of agreements or transactions 
                referred to in subparagraphs (A) and (C);
                    ``(C) an option to enter into an agreement or 
                transaction referred to in subparagraph (A) or (B);
                    ``(D) a master netting agreement that provides for 
                an agreement or transaction referred to in subparagraph 
                (A), (B), or (C), together with all supplements to such 
                master netting agreement, without regard to whether 
                such master netting agreement provides for an agreement 
                or transaction that is not a forward contract under 
                this paragraph, except that such master netting 
                agreement shall be considered to be a forward contract 
                under this paragraph only with respect to each 
                agreement or transaction under such master netting 
                agreement that is referred to in subparagraph (A), (B) 
                or (C); or
                    ``(E) a security agreement or arrangement, or other 
                credit enhancement, directly pertaining to a contract, 
                option, agreement, or transaction referred to in 
                subparagraph (A), (B), (C), or (D), but not to exceed 
                the actual value of such contract, option, agreement, 
                or transaction on the date of the filing of the 
                petition;'';
                    (B) by striking paragraph (47) and inserting the 
                following:
            ``(47) `repurchase agreement' and `reverse repurchase 
        agreement'--
                    ``(A) mean--
                            ``(i) an agreement, including related 
                        terms, which provides for the transfer of--
                                    ``(I) a certificate of deposit, 
                                mortgage related security (as defined 
                                in section 3 of the Securities Exchange 
                                Act of 1934), mortgage loan, interest 
                                in a mortgage related security or 
                                mortgage loan, eligible bankers' 
                                acceptance, or qualified foreign 
                                government security (defined for 
                                purposes of this paragraph to mean a 
                                security that is a direct obligation 
                                of, or that is fully guaranteed by, the 
                                central government of a member of the 
                                Organization for Economic Cooperation 
                                and Development); or
                                    ``(II) a security that is a direct 
                                obligation of, or that is fully 
                                guaranteed by, the United States or an 
                                agency of the United States against the 
                                transfer of funds by the transferee of 
                                such certificate of deposit, eligible 
                                bankers' acceptance, security, loan, or 
                                interest;
                        with a simultaneous agreement by such 
                        transferee to transfer to the transferor 
                        thereof a certificate of deposit, eligible 
                        bankers' acceptance, security, loan, or 
                        interest of the kind described in subclause (I) 
                        or (II), at a date certain that is not later 
                        than 1 year after the date of the transferor's 
                        transfer or on demand, against the transfer of 
                        funds;
                            ``(ii) a combination of agreements or 
                        transactions referred to in clauses (i) and 
                        (iii);
                            ``(iii) an option to enter into an 
                        agreement or transaction referred to in clause 
                        (i) or (ii); or
                            ``(iv) a master netting agreement that 
                        provides for an agreement or transaction 
                        referred to in clause (i), (ii), or (iii), 
                        together with all supplements to such master 
                        netting agreement, without regard to whether 
                        such master netting agreement provides for an 
                        agreement or transaction that is not a 
                        repurchase agreement under this subparagraph, 
                        except that such master netting agreement shall 
                        be considered to be a repurchase agreement 
                        under this subparagraph only with respect to 
                        each agreement or transaction under such master 
                        netting agreement that is referred to in clause 
                        (i), (ii), or (iii); or
                            ``(v) a security agreement or arrangement, 
                        or other credit enhancement, directly 
                        pertaining to a contract referred to in clause 
                        (i), (ii), (iii), or (iv), but not to exceed 
                        the actual value of such contract on the date 
                        of the filing of the petition; and
                    ``(B) do not include a repurchase obligation under 
                a participation in a commercial mortgage loan;'';
                    (C) in paragraph (48) by inserting ``, or exempt 
                from such registration under such section pursuant to 
                an order of the Securities and Exchange Commission'' 
                after ``1934''; and
                    (D) by striking paragraph (53B) and inserting the 
                following:
            ``(53B) `swap agreement'--
                    ``(A) means--
                            ``(i) an agreement, including the terms and 
                        conditions incorporated by reference in such 
                        agreement, that is--
                                    ``(I) an interest rate swap, 
                                option, future, or forward agreement, 
                                including a rate floor, rate cap, rate 
                                collar, cross-currency rate swap, and 
                                basis swap;
                                    ``(II) a spot, same day-tomorrow, 
                                tomorrow-next, forward, or other 
                                foreign exchange or precious metals 
                                agreement;
                                    ``(III) a currency swap, option, 
                                future, or forward agreement;
                                    ``(IV) an equity index or an equity 
                                swap, option, future, or forward 
                                agreement;
                                    ``(V) a debt index or a debt swap, 
                                option, future, or forward agreement;
                                    ``(VI) a credit spread or a credit 
                                swap, option, future, or forward 
                                agreement; or
                                    ``(VII) a commodity index or a 
                                commodity swap, option, future, or 
                                forward agreement;
                            ``(ii) an agreement or transaction that is 
                        similar to an agreement or transaction referred 
                        to in clause (i) that--
                                    ``(I) is currently, or in the 
                                future becomes, regularly entered into 
                                in the swap market (including terms and 
                                conditions incorporated by reference 
                                therein); and
                                    ``(II) is a forward, swap, future, 
                                or option on a rate, currency, 
                                commodity, equity security, or other 
                                equity instrument, on a debt security 
                                or other debt instrument, or on an 
                                economic index or measure of economic 
                                risk or value;
                            ``(iii) a combination of agreements or 
                        transactions referred to in clauses (i) and 
                        (ii);
                            ``(iv) an option to enter into an agreement 
                        or transaction referred to in this 
                        subparagraph;
                            ``(v) a master netting agreement that 
                        provides for an agreement or transaction 
                        referred to in clause (i), (ii), (iii), or 
                        (iv), together with all supplements to such 
                        master netting agreement and without regard to 
                        whether such master netting agreement contains 
                        an agreement or transaction described in any 
                        such clause, but only with respect to each 
                        agreement or transaction referred to in any 
                        such clause that is under such master netting 
                        agreement; except that
                    ``(B) the definition under subparagraph (A) is 
                applicable for purposes of this title only, and shall 
                not be construed or applied so as to challenge or 
                affect the characterization, definition, or treatment 
                of any swap agreement under any other statute, 
                regulation, or rule, including the Securities Act of 
                1933, the Securities Exchange Act of 1934, the Public 
                Utility Holding Company Act of 1935, the Trust 
                Indenture Act of 1939, the Investment Company Act of 
                1940, the Investment Advisers Act of 1940, the 
                Securities Investor Protection Act of 1970, the 
                Commodity Exchange Act, and the regulations prescribed 
                by the Securities and Exchange Commission or the 
                Commodity Futures Trading Commission.'';
            (2) in section 741, by striking paragraph (7) and inserting 
        the following:
            ``(7) `securities contract'--
                    ``(A) means--
                            ``(i) a contract for the purchase, sale, or 
                        loan of a security, a mortgage loan or an 
                        interest in a mortgage loan, a group or index 
                        of securities, or mortgage loans or interests 
                        therein (including an interest therein or based 
                        on the value thereof), or option on any of the 
                        foregoing, including an option to purchase or 
                        sell any of the foregoing;
                            ``(ii) an option entered into on a national 
                        securities exchange relating to foreign 
                        currencies;
                            ``(iii) the guarantee by or to a securities 
                        clearing agency of a settlement of cash, 
                        securities, mortgage loans or interests 
                        therein, group or index of securities, or 
                        mortgage loans or interests therein (including 
                        any interest therein or based on the value 
                        thereof), or option on any of the foregoing, 
                        including an option to purchase or sell any of 
                        the foregoing;
                            ``(iv) a margin loan;
                            ``(v) any other agreement or transaction 
                        that is similar to an agreement or transaction 
                        referred to in this subparagraph;
                            ``(vi) a combination of the agreements or 
                        transactions referred to in this subparagraph;
                            ``(vii) an option to enter into an 
                        agreement or transaction referred to in this 
                        subparagraph;
                            ``(viii) a master netting agreement that 
                        provides for an agreement or transaction 
                        referred to in clause (i), (ii), (iii), (iv), 
                        (v), (vi), or (vii), together with all 
                        supplements to such master netting agreement, 
                        without regard to whether such master netting 
                        agreement provides for an agreement or 
                        transaction that is not a securities contract 
                        under this subparagraph, except that such 
                        master netting agreement shall be considered to 
                        be a securities contract under this 
                        subparagraph only with respect to each 
                        agreement or transaction under such master 
                        netting agreement that is referred to in clause 
                        (i), (ii), (iii), (iv), (v), (vi), or (vii); or
                            ``(ix) a security agreement or arrangement, 
                        or other credit enhancement, directly 
                        pertaining to a contract referred to in this 
                        subparagraph, but not to exceed the actual 
                        value of such contract on the date of the 
                        filing of the petition; and
                    ``(B) does not include a purchase, sale, or 
                repurchase obligation under a participation in a 
                commercial mortgage loan;''; and
            (3) in section 761(4)--
                    (A) by striking ``or'' at the end of subparagraph 
                (D); and
                    (B) by adding at the end the following:
                    ``(F) any other agreement or transaction that is 
                similar to an agreement or transaction referred to in 
                this paragraph;
                    ``(G) a combination of the agreements or 
                transactions referred to in this paragraph;
                    ``(H) an option to enter into an agreement or 
                transaction referred to in this paragraph;
                    ``(I) a master netting agreement that provides for 
                an agreement or transaction referred to in subparagraph 
                (A), (B), (C), (D), (E), (F), (G), or (H), together 
                with all supplements to such master netting agreement, 
                without regard to whether such master netting agreement 
                provides for an agreement or transaction that is not a 
                commodity contract under this paragraph, except that 
                such master netting agreement shall be considered to be 
                a commodity contract under this paragraph only with 
                respect to each agreement or transaction under such 
                master netting agreement that is referred to in 
                subparagraph (A), (B), (C), (D), (E), (F), (G), or (H); 
                or
                    ``(J) a security agreement or arrangement, or other 
                credit enhancement, directly pertaining to a contract 
                referred to in this paragraph, but not to exceed the 
                actual value of such contract on the date of the filing 
                of the petition.''.
    (b) Definitions of Financial Institution, Financial Participant, 
and Forward Contract Merchant.--Section 101 of title 11, United States 
Code, as amended by section 802(b) of this Act, is amended--
            (1) by striking paragraph (22) and inserting the following:
            ``(22) `financial institution' means--
                    ``(A)(i) a Federal reserve bank, or an entity that 
                is a commercial or savings bank, industrial savings 
                bank, savings and loan association, trust company, or 
                receiver or conservator for such entity; and
                    ``(ii) if such Federal reserve bank, receiver, or 
                conservator or entity is acting as agent or custodian 
                for a customer in connection with a securities 
                contract, as defined in section 741, such customer; or
                    ``(B) in connection with a securities contract, as 
                defined in section 741 of this title, an investment 
                company registered under the Investment Company Act of 
                1940;'';
            (2) by inserting after paragraph (22) the following:
            ``(22A) `financial participant' means an entity that is a 
        party to a securities contract, commodity contract or forward 
        contract, or on the date of the filing of the petition, has a 
        commodity contract (as defined in section 761) with the debtor 
        or any other entity (other than an affiliate) of a total gross 
        dollar value of not less than $1,000,000,000 in notional or 
        actual principal amount outstanding on any day during the 
        previous 15-month period, or has gross mark-to-market positions 
        of not less than $100,000,000 (aggregated across 
        counterparties) in any such agreement or transaction with the 
        debtor or any other entity (other than an affiliate) on any day 
        during the previous 15-month period;''; and
            (3) by striking paragraph (26) and inserting the following:
            ``(26) `forward contract merchant' means a Federal reserve 
        bank, or an entity, the business of which consists in whole or 
        in part of entering into forward contracts as or with merchants 
        or in a commodity, as defined or in section 761, or any similar 
        good, article, service, right, or interest that is presently or 
        in the future becomes the subject of dealing or in the forward 
        contract trade;''.
    (c) Definition of Master Netting Agreement and Master Netting 
Agreement Participant.--Section 101 of title 11, United States Code, as 
amended by subsection (b) of this section, is amended by inserting 
after paragraph (38) the following new paragraphs:
            ``(38A) the term `master netting agreement'--
                    ``(A) means an agreement providing for the exercise 
                of rights, including rights of netting, setoff, 
                liquidation, termination, acceleration, or closeout, 
                under or in connection with 1 or more contracts that 
                are described in any 1 or more of paragraphs (1) 
                through (5) of section 561(a), or any security 
                agreement or arrangement or other credit enhancement 
                related to 1 or more of the foregoing; except that
                    ``(B) if a master netting agreement contains 
                provisions relating to agreements or transactions that 
                are not contracts described in paragraphs (1) through 
                (5) of section 561(a), the master netting agreement 
                shall be deemed to be a master netting agreement only 
                with respect to those agreements or transactions that 
                are described in any 1 or more of the paragraphs (1) 
                through (5) of section 561(a);
            ``(38B) the term `master netting agreement participant' 
        means an entity that, at any time before the filing of the 
        petition, is a party to an outstanding master netting agreement 
        with the debtor;''.
    (d) Swap Agreements, Securities Contracts, Commodity Contracts, 
Forward Contracts, Repurchase Agreements, and Master Netting Agreements 
Under the Automatic Stay.--
            (1) In general.--Section 362(b) of title 11, United States 
        Code, as amended by section 718 of this Act, is amended--
                    (A) in paragraph (6), by inserting ``, pledged to, 
                and under the control of,'' after ``held by'';
                    (B) in paragraph (7), by inserting ``, pledged to, 
                and under the control of,'' after ``held by'';
                    (C) by striking paragraph (17) and inserting the 
                following:
            ``(17) under subsection (a), of the setoff by a swap 
        participant of a mutual debt and claim under or in connection 
        with a swap agreement that constitutes the setoff of a claim 
        against the debtor for a payment or transfer due from the 
        debtor under or in connection with a swap agreement against a 
        payment due to the debtor from the swap participant under or in 
        connection with a swap agreement or against cash, securities, 
        or other property held by, pledged to, and under the control 
        of, or due from such swap participant to guarantee, secure, or 
        settle a swap agreement;'';
                    (D) in paragraph (26), by striking ``or'' at the 
                end;
                    (E) in paragraph (27), by striking the period at 
                the end and inserting ``; or''; and
                    (F) by inserting after paragraph (27) the 
                following:
            ``(28) under subsection (a), of the setoff by a master 
        netting agreement participant of a mutual debt and claim under 
        or in connection with 1 or more master netting agreements or 
        any contract or agreement subject to such agreements that 
        constitutes the setoff of a claim against the debtor for any 
        payment or other transfer of property due from the debtor under 
        or in connection with such agreements or any contract or 
        agreement subject to such agreements against any payment due to 
        the debtor from such master netting agreement participant under 
        or in connection with such agreements or any contract or 
        agreement subject to such agreements or against cash, 
        securities, or other property held by, pledged or and under the 
        control of, or due from such master netting agreement 
        participant to margin, guarantee, secure, or settle such 
        agreements or any contract or agreement subject to such 
        agreements, to the extent such participant is eligible to 
        exercise such offset rights under paragraph (6), (7), or (17) 
        for each individual contract covered by the master netting 
        agreement in issue.''.
            (2) Limitation.--Section 362 of title 11, United States 
        Code, as amended by section 441(2) of this Act, is amended by 
        adding at the end the following:
    ``(l) Limitation.--The exercise of rights not subject to the stay 
arising under subsection (a) pursuant to paragraph (6), (7), or (17) of 
subsection (b) shall not be stayed by an order of a court or 
administrative agency in any proceeding under this title.''.
    (e) Limitation of Avoidance Powers Under Master Netting 
Agreement.--Section 546 of title 11, United States Code, is amended--
            (1) in subsection (g) (as added by section 103 of Public 
        Law 101-311 (104 Stat. 267 et seq.))--
                    (A) by striking ``under a swap agreement''; and
                    (B) by striking ``in connection with a swap 
                agreement'' and inserting ``under or in connection with 
                any swap agreement''; and
            (2) by inserting before subsection (i) (as redesignated by 
        section 407 of this Act) the following new subsection:
    ``(h) Notwithstanding sections 544, 545, 547, 548(a)(2)(B), and 
548(b), the trustee may not avoid a transfer made by or to a master 
netting agreement participant under or in connection with any master 
netting agreement or any individual contract covered thereby that is 
made before the commencement of the case, and except to the extent that 
the trustee could otherwise avoid such a transfer made under an 
individual contract covered by such master netting agreement (except 
under section 548(a)(1)(A)).''.
    (f) Fraudulent Transfers of Master Netting Agreements.--Section 
548(d)(2) of title 11, United States Code, is amended--
            (1) in subparagraph (C), by striking ``and'';
            (2) in subparagraph (D), by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following new subparagraph:
                    ``(E) a master netting agreement participant that 
                receives a transfer in connection with a master netting 
                agreement or any individual contract covered thereby 
                takes for value to the extent of such transfer, except, 
                with respect to a transfer under any individual 
                contract covered thereby, to the extent that such 
                master netting agreement participant otherwise did not 
                take (or is otherwise not deemed to have taken) such 
                transfer for value.''.
    (g) Termination or Acceleration of Securities Contracts.--Section 
555 of title 11, United States Code, is amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 555. Contractual right to liquidate, terminate, or accelerate a 
              securities contract'';
        and
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''.
    (h) Termination or Acceleration of Commodities or Forward 
Contracts.--Section 556 of title 11, United States Code, is amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 556. Contractual right to liquidate, terminate, or accelerate a 
              commodities contract or forward contract'';
        and
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''.
    (i) Termination or Acceleration of Repurchase Agreements.--Section 
559 of title 11, United States Code, is amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 559. Contractual right to liquidate, terminate, or accelerate a 
              repurchase agreement'';
        and
            (2) in the first sentence, by striking ``liquidation'' and 
        inserting ``liquidation, termination, or acceleration''.
    (j) Liquidation, Termination, or Acceleration of Swap Agreements.--
Section 560 of title 11, United States Code, is amended--
            (1) by striking the section heading and inserting 
        following:
``Sec. 560. Contractual right to liquidate, terminate, or accelerate a 
              swap agreement'';
            (2) in the first sentence, by striking ``termination of a 
        swap agreement'' and inserting ``liquidation, termination, or 
        acceleration of a swap agreement''; and
            (3) by striking ``in connection with any swap agreement'' 
        and inserting ``in connection with the termination, 
        liquidation, or acceleration of a swap agreement''.
    (k) Liquidation, Termination, Acceleration, or Offset Under a 
Master Netting Agreement and Across Contracts.--Title 11, United States 
Code, is amended by inserting after section 560 the following:
``Sec. 561. Contractual right to terminate, liquidate, accelerate, or 
              offset under a master netting agreement and across 
              contracts
    ``(a) Subject to subsection (b), the exercise of any contractual 
right, because of a condition of the kind specified in section 
365(e)(1), to cause the termination, liquidation, or acceleration of or 
to offset or net termination values, payment amounts or other transfer 
obligations arising under or in connection with 1 or more (or the 
termination, liquidation, or acceleration of 1 or more)--
            ``(1) securities contracts, as defined in section 741(7);
            ``(2) commodity contracts, as defined in section 761(4);
            ``(3) forward contracts;
            ``(4) repurchase agreements;
            ``(5) swap agreements; or
            ``(6) master netting agreements,
shall not be stayed, avoided, or otherwise limited by operation of any 
provision of this title or by any order of a court or administrative 
agency in any proceeding under this title.
    ``(b)(1) A party may exercise a contractual right described in 
subsection (a) to terminate, liquidate, or accelerate only to the 
extent that such party could exercise such a right under section 555, 
556, 559, or 560 for each individual contract covered by the master 
netting agreement in issue.
    ``(2) If a debtor is a commodity broker subject to subchapter IV of 
chapter 7--
            ``(A) a party may not net or offset an obligation to the 
        debtor arising under, or in connection with, a commodity 
        contract against any claim arising under, or in connection 
        with, other instruments, contracts, or agreements listed in 
        subsection (a), except to the extent that the party has 
        positive net equity in the commodity accounts at the debtor, as 
        calculated under such subchapter IV; and
            ``(B) another commodity broker may not net or offset an 
        obligation to the debtor arising under, or in connection with, 
        a commodity contract entered into or held on behalf of a 
        customer of the debtor against any claim arising under, or in 
        connection with, other instruments, contracts, or agreements 
        referred to in subsection (a).
    ``(c) As used in this section, the term `contractual right' 
includes a right set forth in a rule or bylaw of a national securities 
exchange, a national securities association, or a securities clearing 
agency, a right set forth in a bylaw of a clearing organization or 
contract market or in a resolution of the governing board thereof, and 
a right, whether or not evidenced in writing, arising under common law, 
under law merchant, or by reason of normal business practice.''.
    (l) Ancillary Proceedings.--Section 304 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(d) Any provisions of this title relating to securities 
contracts, commodity contracts, forward contracts, repurchase 
agreements, swap agreements, or master netting agreements shall apply 
in a case ancillary to a foreign proceeding under this section or any 
other section of this title, so that enforcement of contractual 
provisions of such contracts and agreements in accordance with their 
terms--
            ``(1) shall not be stayed or otherwise limited by--
                    ``(A) operation of any provision of this title; or
                    ``(B) order of a court in any case under this 
                title;
            ``(2) shall limit avoidance powers to the same extent as in 
        a proceeding under chapter 7 or 11; and
            ``(3) shall not be limited based on the presence or absence 
        of assets of the debtor in the United States.''.
    (m) Commodity Broker Liquidations.--Title 11, United States Code, 
is amended by inserting after section 766 the following:
``Sec. 767. Commodity broker liquidation and forward contract 
              merchants, commodity brokers, stockbrokers, financial 
              institutions, securities clearing agencies, swap 
              participants, repo participants, and master netting 
              agreement participants
    ``Notwithstanding any other provision of this title, the exercise 
of rights by a forward contract merchant, commodity broker, 
stockbroker, financial institution, securities clearing agency, swap 
participant, repo participant, or master netting agreement participant 
under this title shall not affect the priority of any unsecured claim 
it may have after the exercise of such rights.''.
    (n) Stockbroker Liquidations.--Title 11, United States Code, is 
amended by inserting after section 752 the following:
``Sec. 753. Stockbroker liquidation and forward contract merchants, 
              commodity brokers, stockbrokers, financial institutions, 
              securities clearing agencies, swap participants, repo 
              participants, and master netting agreement participants
    ``Notwithstanding any other provision of this title, the exercise 
of rights by a forward contract merchant, commodity broker, 
stockbroker, financial institution, securities clearing agency, swap 
participant, repo participant, financial participant, or master netting 
agreement participant under this title shall not affect the priority of 
any unsecured claim it may have after the exercise of such rights.''.
    (o) Setoff.--Section 553 of title 11, United States Code, is 
amended--
            (1) in subsection (a)(3)(C), by inserting ``(except for a 
        setoff of a kind described in section 362(b)(6), 362(b)(7), 
        362(b)(17), 362(b)(28), 555, 556, 559, or 560)'' before the 
        period; and
            (2) in subsection (b)(1), by striking ``362(b)(14),'' and 
        inserting ``362(b)(17), 362(b)(28), 555, 556, 559, 560,''.
    (p) Securities Contracts, Commodity Contracts, and Forward 
Contracts.--Title 11, United States Code, is amended--
            (1) in section 362(b)(6), by striking ``financial 
        institutions,'' each place such term appears and inserting 
        ``financial institution, financial participant'';
            (2) in section 546(e), by inserting ``financial 
        participant'' after ``financial institution,'';
            (3) in section 548(d)(2)(B), by inserting ``financial 
        participant'' after ``financial institution,'';
            (4) in section 555--
                    (A) by inserting ``financial participant'' after 
                ``financial institution,''; and
                    (B) by inserting before the period ``, a right set 
                forth in a bylaw of a clearing organization or contract 
                market or in a resolution of the governing board 
                thereof, and a right, whether or not in writing, 
                arising under common law, under law merchant, or by 
                reason of normal business practice''; and
            (5) in section 556, by inserting ``, financial 
        participant'' after ``commodity broker''.
    (q) Conforming Amendments.--Title 11, United States Code, is 
amended--
            (1) in the table of sections for chapter 5--
                    (A) by striking the items relating to sections 555 
                and 556 and inserting the following:

``555. Contractual right to liquidate, terminate, or accelerate a 
                            securities contract.
``556. Contractual right to liquidate, terminate, or accelerate a 
                            commodities contract or forward 
                            contract.'';

                    (B) by striking the items relating to sections 559 
                and 560 and inserting the following:

``559. Contractual right to liquidate, terminate, or accelerate a 
                            repurchase agreement.
``560. Contractual right to liquidate, terminate, or accelerate a swap 
                            agreement.'';

                and
                    (C) by adding after the item relating to section 
                560 the following:

``561. Contractual right to terminate, liquidate, accelerate, or offset 
                            under a master netting agreement and across 
                            contracts.'';

        and
            (2) in the table of sections for chapter 7--
                    (A) by inserting after the item relating to section 
                766 the following:

``767. Commodity broker liquidation and forward contract merchants, 
                            commodity brokers, stockbrokers, financial 
                            institutions, securities clearing agencies, 
                            swap participants, repo participants, and 
                            master netting agreement participants.'';

                and
                    (B) by inserting after the item relating to section 
                752 the following:

``753. Stockbroker liquidation and forward contract merchants, 
                            commodity brokers, stockbrokers, financial 
                            institutions, securities clearing agencies, 
                            swap participants, repo participants, and 
                            master netting agreement participants.''.

SEC. 902. DAMAGE MEASURE.

    (a) In General.--Title 11, United States Code, is amended--
            (1) by inserting after section 561 the following:
``Sec. 562. Damage measure in connection with swap agreements, 
              securities contracts, forward contracts, commodity 
              contracts, repurchase agreements, or master netting 
              agreements
    ``If the trustee rejects a swap agreement, securities contract (as 
defined in section 741), forward contract, commodity contract (as 
defined in section 761) repurchase agreement, or master netting 
agreement under section 365(a), or if a forward contract merchant, 
stockbroker, financial institution, securities clearing agency, repo 
participant, financial participant, master netting agreement 
participant, or swap participant liquidates, terminates, or accelerates 
such contract or agreement, damages shall be measured as of the earlier 
of--
            ``(1) the date of such rejection; or
            ``(2) the date of such liquidation, termination, or 
        acceleration.''; and
            (2) in the table of sections for chapter 5 by inserting 
        after the item relating to section 561 the following:

``562. Damage measure in connection with swap agreements, securities 
                            contracts, forward contracts, commodity 
                            contracts, repurchase agreements, or master 
                            netting agreements.''.

    (b) Claims Arising From Rejection.--Section 502(g) of title 11, 
United States Code, is amended--
            (1) by inserting ``(1)'' after ``(g)''; and
            (2) by adding at the end the following:
    ``(2) A claim for damages calculated in accordance with section 561 
shall be allowed under subsection (a), (b), or (c) of this section, or 
disallowed under subsection (d) or (e) of this section, as if such 
claim had arisen before the date of the filing of the petition.''.

SEC. 903. ASSET-BACKED SECURITIZATIONS.

    Section 541 of title 11, United States Code, is amended--
            (1) in subsection (b), by striking ``or'' at the end of 
        paragraph (4);
            (2) by redesignating paragraph (5) of subsection (b) as 
        paragraph (6);
            (3) by inserting after paragraph (4) of subsection (b) the 
        following new paragraph:
            ``(5) any eligible asset (or proceeds thereof), to the 
        extent that such eligible asset was transferred by the debtor, 
        before the date of commencement of the case, to an eligible 
        entity in connection with an asset-backed securitization, 
        except to the extent that such asset (or proceeds or value 
        thereof) may be recovered by the trustee under section 550 by 
        virtue of avoidance under section 548(a); or''; and
            (4) by adding at the end the following:
    ``(e) For purposes of this section, the following definitions shall 
apply:
            ``(1) The term `asset-backed securitization' means a 
        transaction in which eligible assets transferred to an eligible 
        entity are used as the source of payment on securities, the 
        most senior of which are rated investment grade by 1 or more 
        nationally recognized securities rating organizations, issued 
        by an issuer.
            ``(2) The term `eligible asset' means--
                    ``(A) financial assets (including interests therein 
                and proceeds thereof), either fixed or revolving, 
                including residential and commercial mortgage loans, 
                consumer receivables, trade receivables, and lease 
                receivables, that, by their terms, convert into cash 
                within a finite time period, plus any rights or other 
                assets designed to assure the servicing or timely 
                distribution of proceeds to security holders;
                    ``(B) cash; and
                    ``(C) securities.
            ``(3) The term `eligible entity' means--
                    ``(A) an issuer; or
                    ``(B) a trust, corporation, partnership, or other 
                entity engaged exclusively in the business of acquiring 
                and transferring eligible assets directly or indirectly 
                to an issuer and taking actions ancillary thereto.
            ``(4) The term `issuer' means a trust, corporation, 
        partnership, or other entity engaged exclusively in the 
        business of acquiring and holding eligible assets, issuing 
        securities backed by eligible assets, and taking actions 
        ancillary thereto.
            ``(5) The term `transferred' means the debtor, under a 
        written agreement, represented and warranted that eligible 
        assets were sold, contributed, or otherwise conveyed with the 
        intention of removing them from the estate of the debtor 
        pursuant to subsection (b)(5), irrespective, without limitation 
        of--
                    ``(A) whether the debtor directly or indirectly 
                obtained or held an interest in the issuer or in any 
                securities issued by the issuer;
                    ``(B) whether the debtor had an obligation to 
                repurchase or to service or supervise the servicing of 
                all or any portion of such eligible assets; or
                    ``(C) the characterization of such sale, 
                contribution, or other conveyance for tax, accounting, 
                regulatory reporting, or other purposes.''.

SEC. 904. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--This title shall take effect on the date of 
enactment of this Act.
    (b) Application of Amendments.--The amendments made by this title 
shall apply with respect to cases commenced or appointments made under 
any Federal or State law after the date of enactment of this Act, but 
shall not apply with respect to cases commenced or appointments made 
under any Federal or State law before the date of enactment of this 
Act.

       TITLE X--PROTECTION OF FAMILY FARMERS AND FAMILY FISHERMEN

SEC. 1001. REENACTMENT OF CHAPTER 12.

    (a) Reenactment.--
            (1) In general.--Chapter 12 of title 11, United States 
        Code, as reenacted by section 149 of division C of the Omnibus 
        Consolidated and Emergency Supplemental Appropriations Act, 
        1999 (Public Law 105-277), and amended by this Act, is 
        reenacted.
            (2) Effective date.--Subsection (a) shall take effect on 
        October 1, 1999.
    (b) Conforming Amendment.--Section 302 of the Bankruptcy, Judges, 
United States Trustees, and Family Farmer Bankruptcy Act of 1986 (28 
U.S.C. 581 note) is amended by striking subsection (f).

SEC. 1002. DEBT LIMIT INCREASE.

    Section 104(b) of title 11, United States Code, is amended by 
adding at the end the following:
    ``(4) The dollar amount in section 101(18) shall be adjusted at the 
same times and in the same manner as the dollar amounts in paragraph 
(1) of this subsection, beginning with the adjustment to be made on 
April 1, 2001.''.

SEC. 1003. ELIMINATION OF REQUIREMENT THAT FAMILY FARMER AND SPOUSE 
              RECEIVE OVER 50 PERCENT OF INCOME FROM FARMING OPERATION 
              IN YEAR PRIOR TO BANKRUPTCY.

    Section 101(18)(A) of title 11, United States Code, is amended by 
striking ``the taxable year preceding the taxable year'' and inserting 
``at least 1 of the 3 calendar years preceding the year''.

SEC. 1004. CERTAIN CLAIMS OWED TO GOVERNMENTAL UNITS.

    (a) Contents of Plan.--Section 1222(a)(2) of title 11, United 
States Code, is amended to read as follows:
            ``(2) provide for the full payment, in deferred cash 
        payments, of all claims entitled to priority under section 507, 
        unless--
                    ``(A) the claim is a claim owed to a governmental 
                unit that arises as a result of the sale, transfer, 
                exchange, or other disposition of any farm asset used 
                in the debtor's farming operation, in which case the 
                claim shall be treated as an unsecured claim that is 
                not entitled to priority under section 507, but the 
                debt shall be treated in such manner only if the debtor 
                receives a discharge; or
                    ``(B) the holder of a particular claim agrees to a 
                different treatment of that claim; and''.
    (b) Special Notice Provisions.--Section 1231(b) of title 11, United 
States Code, is amended by striking ``a State or local governmental 
unit'' and inserting ``any governmental unit''.

SEC. 1005. PROHIBITION OF RETROACTIVE ASSESSMENT OF DISPOSABLE INCOME.

    (a) In General.--Section 1225(b) of title 11, United States Code, 
is amended by adding at the end the following:
            ``(3) If the plan provides for specific amounts of property 
        to be distributed on account of allowed unsecured claims as 
        required by paragraph (1)(B), those amounts equal or exceed the 
        debtor's projected disposable income for that period, and the 
        plan meets the requirements for confirmation other than those 
        of this subsection, the plan shall be confirmed.''.
    (b) Modification.--Section 1229 of title 11, United States Code, is 
amended by adding at the end the following:
    ``(d)(1) A modification of the plan under this section may not 
increase the amount of payments that were due prior to the date of the 
order modifying the plan.
    ``(2) A modification of the plan under this section to increase 
payments based on an increase in the debtor's disposable income may not 
require payments to unsecured creditors in any particular month greater 
than the debtor's disposable income for that month unless the debtor 
proposes such a modification.
    ``(3) A modification of the plan in the last year of the plan shall 
not require payments that would leave the debtor with insufficient 
funds to carry on the farming operation after the plan is completed 
unless the debtor proposes such a modification.''.

SEC. 1006. FAMILY FISHERMEN.

    (a) Definitions.--Section 101 of title 11, United States Code, is 
amended--
            (1) by inserting after paragraph (7) the following:
            ``(7A) `commercial fishing operation' includes--
                    ``(A) the catching or harvesting of fish, shrimp, 
                lobsters, urchins, seaweed, shellfish, or other aquatic 
                species or products; and
                    ``(B) for purposes of section 109 and chapter 12, 
                aquaculture activities consisting of raising for market 
                any species or product described in subparagraph 
                (A);'';
            ``(7B) `commercial fishing vessel' means a vessel used by a 
        fisherman to carry out a commercial fishing operation;'';
            (2) by inserting after paragraph (19) the following:
            ``(19A) `family fisherman' means--
                    ``(A) an individual or individual and spouse 
                engaged in a commercial fishing operation (including 
                aquiculture for purposes of chapter 12)--
                            ``(i) whose aggregate debts do not exceed 
                        $1,500,000 and not less than 80 percent of 
                        whose aggregate noncontingent, liquidated debts 
                        (excluding a debt for the principal residence 
                        of such individual or such individual and 
                        spouse, unless such debt arises out of a 
                        commercial fishing operation), on the date the 
                        case is filed, arise out of a commercial 
                        fishing operation owned or operated by such 
                        individual or such individual and spouse; and
                            ``(ii) who receive from such commercial 
                        fishing operation more than 50 percent of such 
                        individual's or such individual's and spouse's 
                        gross income for the taxable year preceding the 
                        taxable year in which the case concerning such 
                        individual or such individual and spouse was 
                        filed; or
                    ``(B) a corporation or partnership--
                            ``(i) in which more than 50 percent of the 
                        outstanding stock or equity is held by--
                                    ``(I) 1 family that conducts the 
                                commercial fishing operation; or
                                    ``(II) 1 family and the relatives 
                                of the members of such family, and such 
                                family or such relatives conduct the 
                                commercial fishing operation; and
                            ``(ii)(I) more than 80 percent of the value 
                        of its assets consists of assets related to the 
                        commercial fishing operation;
                            ``(II) its aggregate debts do not exceed 
                        $1,500,000 and not less than 80 percent of its 
                        aggregate noncontingent, liquidated debts 
                        (excluding a debt for 1 dwelling which is owned 
                        by such corporation or partnership and which a 
                        shareholder or partner maintains as a principal 
                        residence, unless such debt arises out of a 
                        commercial fishing operation), on the date the 
                        case is filed, arise out of a commercial 
                        fishing operation owned or operated by such 
                        corporation or such partnership; and
                            ``(III) if such corporation issues stock, 
                        such stock is not publicly traded;''; and
            (3) by inserting after paragraph (19A) the following:
            ``(19B) `family fisherman with regular annual income' means 
        a family fisherman whose annual income is sufficiently stable 
        and regular to enable such family fisherman to make payments 
        under a plan under chapter 12 of this title;''.
    (b) Who May Be a Debtor.--Section 109(f) of title 11, United States 
Code, is amended by inserting ``or family fisherman'' after ``family 
farmer''.
    (c)  Chapter 12.--Chapter 12 of title 11, United States Code, is 
amended--
            (1) in the chapter heading, by inserting ``OR FISHERMAN'' 
        after ``FAMILY FARMER'';
            (2) in section 1201, by adding at the end the following:
    ``(e)(1) Notwithstanding any other provision of law, for purposes 
of this subsection, a guarantor of a claim of a creditor under this 
section shall be treated in the same manner as a creditor with respect 
to the operation of a stay under this section.
    ``(2) For purposes of a claim that arises from the ownership or 
operation of a commercial fishing operation, a co-maker of a loan made 
by a creditor under this section shall be treated in the same manner as 
a creditor with respect to the operation of a stay under this 
section.'';
            (3) in section 1203, by inserting ``or commercial fishing 
        operation'' after ``farm'';
            (4) in section 1206, by striking ``if the property is 
        farmland or farm equipment'' and inserting ``if the property is 
        farmland, farm equipment, or property of a commercial fishing 
        operation (including a commercial fishing vessel)''; and
            (5) by adding at the end the following:
``Sec. 1232. Additional provisions relating to family fishermen
    ``(a)(1) Notwithstanding any other provision of law, except as 
provided in subsection (c), with respect to any commercial fishing 
vessel of a family fisherman, the debts of that family fisherman shall 
be treated in the manner prescribed in paragraph (2).
    ``(2)(A) For purposes of this chapter, a claim for a lien described 
in subsection (b) for a commercial fishing vessel of a family fisherman 
that could, but for this subsection, be subject to a lien under 
otherwise applicable maritime law, shall be treated as an unsecured 
claim.
    ``(B) Subparagraph (A) applies to a claim for a lien resulting from 
a debt of a family fisherman incurred on or after the date of enactment 
of this chapter.
    ``(b) A lien described in this subsection is--
            ``(1) a maritime lien under subchapter III of chapter 313 
        of title 46, United States Code, without regard to whether that 
        lien is recorded under section 31343 of title 46, United States 
        Code; or
            ``(2) a lien under applicable State law (or the law of a 
        political subdivision thereof).
    ``(c) Subsection (a) shall not apply to--
            ``(1) a claim made by a member of a crew or a seaman 
        including a claim made for--
                    ``(A) wages, maintenance, or cure; or
                    ``(B) personal injury; or
            ``(2) a preferred ship mortgage that has been perfected 
        under subchapter II of chapter 313 of title 46, United States 
        Code.
    ``(d) For purposes of this chapter, a mortgage described in 
subsection (c)(2) shall be treated as a secured claim.''.
    (d) Clerical Amendments.--
            (1) Table of chapters.--In the table of chapters for title 
        11, United States Code, the item relating to chapter 12, is 
        amended to read as follows:

``12. Adjustments of Debts of a Family Farmer or Family         1201''.
                            Fisherman with Regular Annual 
                            Income.
            (2) Table of sections.--The table of sections for chapter 
        12 of title 11, United States Code, is amended by adding at the 
        end the following new item:

``1232. Additional provisions relating to family fishermen.''.

              TITLE XI--HEALTH CARE AND EMPLOYEE BENEFITS

SEC. 1101. DEFINITIONS.

    (a) Health Care Business Defined.--Section 101 of title 11, United 
States Code, as amended by section 1003(a) of this Act, is amended--
            (1) by redesignating paragraph (27A) as paragraph (27B); 
        and
            (2) inserting after paragraph (27) the following:
            ``(27A) `health care business'--
                    ``(A) means any public or private entity (without 
                regard to whether that entity is organized for profit 
                or not for profit) that is primarily engaged in 
                offering to the general public facilities and services 
                for--
                            ``(i) the diagnosis or treatment of injury, 
                        deformity, or disease; and
                            ``(ii) surgical, drug treatment, 
                        psychiatric or obstetric care; and
                    ``(B) includes--
                            ``(i) any--
                                    ``(I) general or specialized 
                                hospital;
                                    ``(II) ancillary ambulatory, 
                                emergency, or surgical treatment 
                                facility;
                                    ``(III) hospice;
                                    ``(IV) home health agency; and
                                    ``(V) other health care institution 
                                that is similar to an entity referred 
                                to in subclause (I), (II), (III), or 
                                (IV); and
                            ``(ii) any long-term care facility, 
                        including any--
                                    ``(I) skilled nursing facility;
                                    ``(II) intermediate care facility;
                                    ``(III) assisted living facility;
                                    ``(IV) home for the aged;
                                    ``(V) domiciliary care facility; 
                                and
                                    ``(VI) health care institution that 
                                is related to a facility referred to in 
                                subclause (I), (II), (III), (IV), or 
                                (V), if that institution is primarily 
                                engaged in offering room, board, 
                                laundry, or personal assistance with 
                                activities of daily living and 
                                incidentals to activities of daily 
                                living;''.
    (b) Patient Defined.--Section 101 of title 11, United States Code, 
as amended by subsection (a) of this section, is amended by inserting 
after paragraph (40) the following:
            ``(40A) `patient' means any person who obtains or receives 
        services from a health care business;''.
    (c) Patient Records Defined.--Section 101 of title 11, United 
States Code, as amended by subsection (b) of this section, is amended 
by inserting after paragraph (40A) the following:
            ``(40B) `patient records' means any written document 
        relating to a patient or a record recorded in a magnetic, 
        optical, or other form of electronic medium;''.
    (d) Rule of Construction.--The amendments made by subsection (a) of 
this section shall not affect the interpretation of section 109(b) of 
title 11, United States Code.

SEC. 1102. DISPOSAL OF PATIENT RECORDS.

    (a) In General.--Subchapter III of chapter 3 of title 11, United 
States Code, is amended by adding at the end the following:
``Sec. 351. Disposal of patient records
    ``If a health care business commences a case under chapter 7, 9, or 
11, and the trustee does not have a sufficient amount of funds to pay 
for the storage of patient records in the manner required under 
applicable Federal or State law, the following requirements shall 
apply:
            ``(1) The trustee shall--
                    ``(A) publish notice, in 1 or more appropriate 
                newspapers, that if patient records are not claimed by 
                the patient or an insurance provider (if applicable law 
                permits the insurance provider to make that claim) by 
                the date that is 90 days after the date of that 
                notification, the trustee will destroy the patient 
                records; and
                    ``(B) during the 90-day period described in 
                subparagraph (A), attempt to notify directly each 
                patient that is the subject of the patient records and 
                appropriate insurance carrier concerning the patient 
                records by mailing to the last known address of that 
                patient and appropriate insurance carrier an 
                appropriate notice regarding the claiming or disposing 
                of patient records.
            ``(2) If after providing the notification under paragraph 
        (1), patient records are not claimed during the 90-day period 
        described under that paragraph, the trustee shall mail, by 
        certified mail, at the end of such 90-day period a written 
        request to each appropriate Federal agency to request 
        permission from that agency to deposit the patient records with 
        that agency.
            ``(3) If, following the period in paragraph (2) and after 
        providing the notification under paragraph (1), patient records 
        are not claimed during the 90-day period described in paragraph 
        (1)(A) or in any case in which a notice is mailed under 
        paragraph (1)(B), during the 90-day period beginning on the 
        date on which the notice is mailed, by a patient or insurance 
        provider in accordance with that paragraph, the trustee shall 
        destroy those records by--
                    ``(A) if the records are written, shredding or 
                burning the records; or
                    ``(B) if the records are magnetic, optical, or 
                other electronic records, by otherwise destroying those 
                records so that those records cannot be retrieved.''.
    (b) Clerical Amendment.--The chapter analysis for chapter 3 of 
title 11, United States Code, is amended by inserting after the item 
relating to section 350 the following:

``351. Disposal of patient records.''.

SEC. 1103. ADMINISTRATIVE EXPENSE CLAIM FOR COSTS OF CLOSING A HEALTH 
              CARE BUSINESS.

    Section 503(b) of title 11, United States Code, is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(7) the actual, necessary costs and expenses of closing a 
        health care business incurred by a trustee or by a Federal 
        agency (as that term is defined in section 551(1) of title 5) 
        or a department or agency of a State or political subdivision 
        thereof, including any cost or expense incurred--
                    ``(A) in disposing of patient records in accordance 
                with section 351; or
                    ``(B) in connection with transferring patients from 
                the health care business that is in the process of 
                being closed to another health care business.''.

SEC. 1104. APPOINTMENT OF OMBUDSMAN TO ACT AS PATIENT ADVOCATE.

    (a) In General.--
            (1) Appointment of ombudsman.--Subchapter II of chapter 3 
        of title 11, United States Code, is amended by inserting after 
        section 331 the following:
``Sec. 332. Appointment of ombudsman
    ``(a) Not later than 30 days after a case is commenced by a health 
care business under chapter 7, 9, or 11, the court shall appoint an 
ombudsman with appropriate expertise in monitoring the quality of 
patient care to represent the interests of the patients of the health 
care business. The court may appoint as an ombudsman a person who is 
serving as a State Long-Term Care Ombudsman appointed under title III 
or VII of the Older Americans Act of 1965 (42 U.S.C. 3021 et seq. and 
3058 et seq.).
    ``(b) An ombudsman appointed under subsection (a) shall--
            ``(1) monitor the quality of patient care, to the extent 
        necessary under the circumstances, including interviewing 
        patients and physicians;
            ``(2) not later than 60 days after the date of appointment, 
        and not less frequently than every 60 days thereafter, report 
        to the court, at a hearing or in writing, regarding the quality 
        of patient care at the health care business involved; and
            ``(3) if the ombudsman determines that the quality of 
        patient care is declining significantly or is otherwise being 
        materially compromised, notify the court by motion or written 
        report, with notice to appropriate parties in interest, 
        immediately upon making that determination.
    ``(c) An ombudsman shall maintain any information obtained by the 
ombudsman under this section that relates to patients (including 
information relating to patient records) as confidential 
information.''.
            (2) Clerical amendment.--The chapter analysis for chapter 3 
        of title 11, United States Code, is amended by inserting after 
        the item relating to section 331 the following:

``332. Appointment of ombudsman.''.

    (b) Compensation of Ombudsman.--Section 330(a)(1) of title 11, 
United States Code, is amended--
            (1) in the matter proceeding subparagraph (A), by inserting 
        ``an ombudsman appointed under section 331, or'' before ``a 
        professional person''; and
            (2) in subparagraph (A), by inserting ``ombudsman,'' before 
        ``professional person''.

SEC. 1105. DEBTOR IN POSSESSION; DUTY OF TRUSTEE TO TRANSFER PATIENTS.

    (a) In General.--Section 704(a) of title 11, United States Code, as 
amended by section 219 of this Act, is amended--
            (1) in paragraph (9), by striking ``and'' at the end;
            (2) in paragraph (10), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(11) use all reasonable and best efforts to transfer 
        patients from a health care business that is in the process of 
        being closed to an appropriate health care business that--
                    ``(A) is in the vicinity of the health care 
                business that is closing;
                    ``(B) provides the patient with services that are 
                substantially similar to those provided by the health 
                care business that is in the process of being closed; 
                and
                    ``(C) maintains a reasonable quality of care.''.
    (b) Conforming Amendment.--Section 1106(a)(1) of title 11, United 
States Code, is amended by striking ``704(2), 704(5), 704(7), 704(8), 
and 704(9)'' and inserting ``704(a) (2), (5), (7), (8), (9), and 
(11)''.

SEC. 1106. ESTABLISHMENT OF POLICY AND PROTOCOLS RELATING TO 
              BANKRUPTCIES OF HEALTH CARE BUSINESSES.

    Not later than 30 days after the date of enactment of this Act, the 
Attorney General of the United States, in consultation with the 
Secretary of Health and Human Services and the National Association of 
Attorneys General, shall establish a policy and protocols for 
coordinating a response to bankruptcies of health care businesses (as 
that term is defined in section 101 of title 11, United States Code), 
including assessing the appropriate time frame for disposal of patient 
records under section 1102 of this Act.

SEC. 1107. EXCLUSION FROM PROGRAM PARTICIPATION NOT SUBJECT TO 
              AUTOMATIC STAY.

    Section 362(b) of title 11, United States Code, as amended by 
section 901(d) of this Act, is amended--
            (1) in paragraph (27), by striking ``or'' at the end;
            (2) in paragraph (28), by striking the period at the end 
        and inserting ``; or''; and
            (3) by inserting after paragraph (28) the following:
            ``(29) under subsection (a), of the exclusion by the 
        Secretary of Health and Human Services of the debtor from 
        participation in the medicare program or any other Federal 
        health care program (as defined in section 1128B(f) of the 
        Social Security Act (42 U.S.C. 1320a-7b(f)) pursuant to title 
        XI of such Act (42 U.S.C. 1301 et seq.) or title XVIII of such 
        Act (42 U.S.C. 1395 et seq.).''.

                    TITLE XII--TECHNICAL AMENDMENTS

SEC. 1201. DEFINITIONS.

    Section 101 of title 11, United States Code, as amended by section 
1003 of this Act, is amended--
            (1) by striking ``In this title--'' and inserting ``In this 
        title:'';
            (2) in each paragraph, by inserting ``The term'' after the 
        paragraph designation;
            (3) in paragraph (35)(B), by striking ``paragraphs (21B) 
        and (33)(A)'' and inserting ``paragraphs (23) and (35)'';
            (4) in each of paragraphs (35A) and (38), by striking ``; 
        and'' at the end and inserting a period;
            (5) in paragraph (51B)--
                    (A) by inserting ``who is not a family farmer'' 
                after ``debtor'' the first place it appears; and
                    (B) by striking ``thereto having aggregate'' and 
                all that follows through the end of the paragraph;
            (6) by striking paragraph (54) and inserting the following:
            ``(54) The term `transfer' means--
                    ``(A) the creation of a lien;
                    ``(B) the retention of title as a security 
                interest;
                    ``(C) the foreclosure of a debtor's equity of 
                redemption; or
                    ``(D) each mode, direct or indirect, absolute or 
                conditional, voluntary or involuntary, of disposing of 
                or parting with--
                            ``(i) property; or
                            ``(ii) an interest in property;'';
            (7) in each of paragraphs (1) through (35), in each of 
        paragraphs (36) and (37), and in each of paragraphs (40) 
        through (55) (including paragraph (54), as amended by paragraph 
        (6) of this section), by striking the semicolon at the end and 
        inserting a period; and
            (8) by redesignating paragraphs (4) through (55), including 
        paragraph (54), as amended by paragraph (6) of this section, in 
        entirely numerical sequence.

SEC. 1202. ADJUSTMENT OF DOLLAR AMOUNTS.

    Section 104 of title 11, United States Code, is amended by 
inserting ``522(f)(3),'' after ``522(d),'' each place it appears.

SEC. 1203. EXTENSION OF TIME.

    Section 108(c)(2) of title 11, United States Code, is amended by 
striking ``922'' and all that follows through ``or'', and inserting 
``922, 1201, or''.

SEC. 1204. TECHNICAL AMENDMENTS.

    Title 11, United States Code, is amended--
            (1) in section 109(b)(2), by striking ``subsection (c) or 
        (d) of''; and
            (2) in section 552(b)(1), by striking ``product'' each 
        place it appears and inserting ``products''.

SEC. 1205. PENALTY FOR PERSONS WHO NEGLIGENTLY OR FRAUDULENTLY PREPARE 
              BANKRUPTCY PETITIONS.

    Section 110(j)(3) of title 11, United States Code, is amended by 
striking ``attorney's'' and inserting ``attorneys'''.

SEC. 1206. LIMITATION ON COMPENSATION OF PROFESSIONAL PERSONS.

    Section 328(a) of title 11, United States Code, is amended by 
inserting ``on a fixed or percentage fee basis,'' after ``hourly 
basis,''.

SEC. 1207. EFFECT OF CONVERSION.

    Section 348(f)(2) of title 11, United States Code, is amended by 
inserting ``of the estate'' after ``property'' the first place it 
appears.

SEC. 1208. ALLOWANCE OF ADMINISTRATIVE EXPENSES.

    Section 503(b)(4) of title 11, United States Code, is amended by 
inserting ``subparagraph (A), (B), (C), (D), or (E) of'' before 
``paragraph (3)''.

SEC. 1209. EXCEPTIONS TO DISCHARGE.

    Section 523 of title 11, United States Code, as amended by section 
714 of this Act, is amended--
            (1) as amended by section 304(e) of Public Law 103-394 (108 
        Stat. 4133), in paragraph (15), by transferring such paragraph 
        so as to insert such paragraph after paragraph (14) of 
        subsection (a);
            (2) in subsection (a)(9), by striking ``motor vehicle or 
        vessel'' and inserting ``motor vehicle, vessel, or aircraft''; 
        and
            (3) in subsection (e), by striking ``a insured'' and 
        inserting ``an insured''.

SEC. 1210. EFFECT OF DISCHARGE.

    Section 524(a)(3) of title 11, United States Code, is amended by 
striking ``section 523'' and all that follows through ``or that'' and 
inserting ``section 523, 1228(a)(1), or 1328(a)(1), or that''.

SEC. 1211. PROTECTION AGAINST DISCRIMINATORY TREATMENT.

    Section 525(c) of title 11, United States Code, is amended--
            (1) in paragraph (1), by inserting ``student'' before 
        ``grant'' the second place it appears; and
            (2) in paragraph (2), by striking ``the program operated 
        under part B, D, or E of'' and inserting ``any program operated 
        under''.

SEC. 1212. PROPERTY OF THE ESTATE.

    Section 541(b)(4)(B)(ii) of title 11, United States Code, is 
amended by inserting ``365 or'' before ``542''.

SEC. 1213. PREFERENCES.

    (a) In General.--Section 547 of title 11, United States Code, as 
amended by section 201(b) of this Act, is amended--
            (1) in subsection (b), by striking ``subsection (c)'' and 
        inserting ``subsections (c) and (i)''; and
            (2) by adding at the end the following:
    ``(i) If the trustee avoids under subsection (b) a security 
interest given between 90 days and 1 year before the date of the filing 
of the petition, by the debtor to an entity that is not an insider for 
the benefit of a creditor that is an insider, such security interest 
shall be considered to be avoided under this section only with respect 
to the creditor that is an insider.''.
    (b) Applicability.--The amendments made by this section shall apply 
to any case that pending or commenced on or after the date of enactment 
of this Act.

SEC. 1214. POSTPETITION TRANSACTIONS.

    Section 549(c) of title 11, United States Code, is amended--
            (1) by inserting ``an interest in'' after ``transfer of'';
            (2) by striking ``such property'' and inserting ``such real 
        property''; and
            (3) by striking ``the interest'' and inserting ``such 
        interest''.

SEC. 1215. DISPOSITION OF PROPERTY OF THE ESTATE.

    Section 726(b) of title 11, United States Code, is amended by 
striking ``1009,''.

SEC. 1216. GENERAL PROVISIONS.

    Section 901(a) of title 11, United States Code, as amended by 
section 502 of this Act, is amended by inserting ``1123(d),'' after 
``1123(b),''.

SEC. 1217. ABANDONMENT OF RAILROAD LINE.

    Section 1170(e)(1) of title 11, United States Code, is amended by 
striking ``section 11347'' and inserting ``section 11326(a)''.

SEC. 1218. CONTENTS OF PLAN.

    Section 1172(c)(1) of title 11, United States Code, is amended by 
striking ``section 11347'' and inserting ``section 11326(a)''.

SEC. 1219. DISCHARGE UNDER CHAPTER 12.

    Subsections (a) and (c) of section 1228 of title 11, United States 
Code, are amended by striking ``1222(b)(10)'' each place it appears and 
inserting ``1222(b)(9)''.

SEC. 1220. BANKRUPTCY CASES AND PROCEEDINGS.

    Section 1334(d) of title 28, United States Code, is amended--
            (1) by striking ``made under this subsection'' and 
        inserting ``made under subsection (c)''; and
            (2) by striking ``This subsection'' and inserting 
        ``Subsection (c) and this subsection''.

SEC. 1221. KNOWING DISREGARD OF BANKRUPTCY LAW OR RULE.

    Section 156(a) of title 18, United States Code, is amended--
            (1) in the first undesignated paragraph--
                    (A) by inserting ``(1) the term'' before 
                ```bankruptcy''; and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (2) in the second undesignated paragraph--
                    (A) by inserting ``(2) the term'' before 
                ```document''; and
                    (B) by striking ``this title'' and inserting 
                ``title 11''.

SEC. 1222. TRANSFERS MADE BY NONPROFIT CHARITABLE CORPORATIONS.

    (a) Sale of Property of Estate.--Section 363(d) of title 11, United 
States Code, is amended by striking ``only'' and all that follows 
through the end of the subsection and inserting ``only--
            ``(1) in accordance with applicable nonbankruptcy law that 
        governs the transfer of property by a corporation or trust that 
        is not a moneyed, business, or commercial corporation or trust; 
        and
            ``(2) to the extent not inconsistent with any relief 
        granted under subsection (c), (d), (e), or (f) of section 
        362.''.
    (b) Confirmation of Plan for Reorganization.--Section 1129(a) of 
title 11, United States Code, as amended by section 212 of this Act, is 
amended by adding at the end the following:
            ``(15) All transfers of property of the plan shall be made 
        in accordance with any applicable provisions of nonbankruptcy 
        law that govern the transfer of property by a corporation or 
        trust that is not a moneyed, business, or commercial 
        corporation or trust.''.
    (c) Transfer of Property.--Section 541 of title 11, United States 
Code, is amended by adding at the end the following:
    ``(f) Notwithstanding any other provision of this title, property 
that is held by a debtor that is a corporation described in section 
501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax 
under section 501(a) of such Code may be transferred to an entity that 
is not such a corporation, but only under the same conditions as would 
apply if the debtor had not filed a case under this title.''.
    (d) Applicability.--The amendments made by this section shall apply 
to a case pending under title 11, United States Code, on the date of 
enactment of this Act, except that the court shall not confirm a plan 
under chapter 11 of this title without considering whether this section 
would substantially affect the rights of a party in interest who first 
acquired rights with respect to the debtor after the date of the 
petition. The parties who may appear and be heard in a proceeding under 
this section include the attorney general of the State in which the 
debtor is incorporated, was formed, or does business.
    (e) Rule of Construction.--Nothing in this section shall be 
construed to require the court in which a case under chapter 11 is 
pending to remand or refer any proceeding, issue, or controversy to any 
other court or to require the approval of any other court for the 
transfer of property.

SEC. 1223. PROTECTION OF VALID PURCHASE MONEY SECURITY INTERESTS.

    Section 547(c)(3)(B) of title 11, United States Code, is amended by 
striking ``20'' and inserting ``30''.

SEC. 1224. EXTENSIONS.

    Section 302(d)(3) of the Bankruptcy, Judges, United States 
Trustees, and Family Farmer Bankruptcy Act of 1986 (28 U.S.C. 581 note) 
is amended--
            (1) in subparagraph (A), in the matter following clause 
        (ii), by striking ``or October 1, 2002, whichever occurs 
        first''; and
            (2) in subparagraph (F)--
                    (A) in clause (i)--
                            (i) in subclause (II), by striking ``or 
                        October 1, 2002, whichever occurs first''; and
                            (ii) in the matter following subclause 
                        (II), by striking ``October 1, 2003, or''; and
                    (B) in clause (ii), in the matter following 
                subclause (II)--
                            (i) by striking ``before October 1, 2003, 
                        or''; and
                            (ii) by striking ``, whichever occurs 
                        first''.

SEC. 1225. BANKRUPTCY JUDGESHIPS.

    (a) Short Title.--This section may be cited as the ``Bankruptcy 
Judgeship Act of 2000''.
    (b) Temporary Judgeships.--
            (1) Appointments.--The following judgeship positions shall 
        be filled in the manner prescribed in section 152(a)(1) of 
        title 28, United States Code, for the appointment of bankruptcy 
        judges provided for in section 152(a)(2) of such title:
                    (A) One additional bankruptcy judgeship for the 
                eastern district of California.
                    (B) Four additional bankruptcy judgeships for the 
                central district of California.
                    (C) One additional bankruptcy judgeship for the 
                southern district of Florida.
                    (D) Two additional bankruptcy judgeships for the 
                district of Maryland.
                    (E) One additional bankruptcy judgeship for the 
                eastern district of Michigan.
                    (F) One additional bankruptcy judgeship for the 
                southern district of Mississippi.
                    (G) One additional bankruptcy judgeship for the 
                district of New Jersey.
                    (H) One additional bankruptcy judgeship for the 
                eastern district of New York.
                    (I) One additional bankruptcy judgeship for the 
                northern district of New York.
                    (J) One additional bankruptcy judgeship for the 
                southern district of New York.
                    (K) One additional bankruptcy judgeship for the 
                eastern district of Pennsylvania.
                    (L) One additional bankruptcy judgeship for the 
                middle district of Pennsylvania.
                    (M) One additional bankruptcy judgeship for the 
                western district of Tennessee.
                    (N) One additional bankruptcy judgeship for the 
                eastern district of Virginia.
            (2) Vacancies.--The first vacancy occurring in the office 
        of a bankruptcy judge in each of the judicial districts set 
        forth in paragraph (1) that--
                    (A) results from the death, retirement, 
                resignation, or removal of a bankruptcy judge; and
                    (B) occurs 5 years or more after the appointment 
                date of a bankruptcy judge appointed under paragraph 
                (1);

        shall not be filled.
    (c) Extensions.--
            (1) In general.--The temporary bankruptcy judgeship 
        positions authorized for the northern district of Alabama, the 
        district of Delaware, the district of Puerto Rico, the district 
        of South Carolina, and the eastern district of Tennessee under 
        section 3(a) (1), (3), (7), (8), and (9) of the Bankruptcy 
        Judgeship Act of 1992 (28 U.S.C. 152 note) are extended until 
        the first vacancy occurring in the office of a bankruptcy judge 
        in the applicable district resulting from the death, 
        retirement, resignation, or removal of a bankruptcy judge and 
        occurring--
                    (A) 8 years or more after November 8, 1993, with 
                respect to the northern district of Alabama;
                    (B) 10 years or more after October 28, 1993, with 
                respect to the district of Delaware;
                    (C) 8 years or more after August 29, 1994, with 
                respect to the district of Puerto Rico;
                    (D) 8 years or more after June 27, 1994, with 
                respect to the district of South Carolina; and
                    (E) 8 years or more after November 23, 1993, with 
                respect to the eastern district of Tennessee.
            (2) Applicability of other provisions.--All other 
        provisions of section 3 of the Bankruptcy Judgeship Act of 1992 
        remain applicable to such temporary judgeship positions.
    (d) Technical Amendment.--The first sentence of section 152(a)(1) 
of title 28, United States Code, is amended to read as follows: ``Each 
bankruptcy judge to be appointed for a judicial district as provided in 
paragraph (2) shall be appointed by the United States court of appeals 
for the circuit in which such district is located.''.

SEC. 1226. FAMILY FISHERMEN.

    (a) Definitions.--Section 101 of title 11, United States Code, is 
amended--
            (1) by inserting after paragraph (7) the following:
            ``(7A) `commercial fishing operation' includes--
                    ``(A) the catching or harvesting of fish, shrimp, 
                lobsters, urchins, seaweed, shellfish, or other aquatic 
                species or products;
                    ``(B) for purposes of section 109 and chapter 12, 
                aquaculture activities consisting of raising for market 
                any species or product described in subparagraph (A); 
                and
                    ``(C) the transporting by vessel of a passenger for 
                hire (as defined in section 2101 of title 46) who is 
                engaged in recreational fishing;
            ``(7B) `commercial fishing vessel' means a vessel used by a 
        fisherman to carry out a commercial fishing operation;'';
            (2) by inserting after paragraph (19) the following:
            ``(19A) `family fisherman' means--
                    ``(A) an individual or individual and spouse 
                engaged in a commercial fishing operation (including 
                aquaculture for purposes of chapter 12)--
                            ``(i) whose aggregate debts do not exceed 
                        $1,500,000 and not less than 80 percent of 
                        whose aggregate noncontingent, liquidated debts 
                        (excluding a debt for the principal residence 
                        of such individual or such individual and 
                        spouse, unless such debt arises out of a 
                        commercial fishing operation), on the date the 
                        case is filed, arise out of a commercial 
                        fishing operation owned or operated by such 
                        individual or such individual and spouse; and
                            ``(ii) who receive from such commercial 
                        fishing operation more than 50 percent of such 
                        individual's or such individual's and spouse's 
                        gross income for the taxable year preceding the 
                        taxable year in which the case concerning such 
                        individual or such individual and spouse was 
                        filed; or
                    ``(B) a corporation or partnership--
                            ``(i) in which more than 50 percent of the 
                        outstanding stock or equity is held by--
                                    ``(I) 1 family that conducts the 
                                commercial fishing operation; or
                                    ``(II) 1 family and the relatives 
                                of the members of such family, and such 
                                family or such relatives conduct the 
                                commercial fishing operation; and
                            ``(ii)(I) more than 80 percent of the value 
                        of its assets consists of assets related to the 
                        commercial fishing operation;
                            ``(II) its aggregate debts do not exceed 
                        $1,500,000 and not less than 80 percent of its 
                        aggregate noncontingent, liquidated debts 
                        (excluding a debt for 1 dwelling which is owned 
                        by such corporation or partnership and which a 
                        shareholder or partner maintains as a principal 
                        residence, unless such debt arises out of a 
                        commercial fishing operation), on the date the 
                        case is filed, arise out of a commercial 
                        fishing operation owned or operated by such 
                        corporation or such partnership; and
                            ``(III) if such corporation issues stock, 
                        such stock is not publicly traded;''; and
            (3) by inserting after paragraph (19A) the following:
            ``(19B) `family fisherman with regular annual income' means 
        a family fisherman whose annual income is sufficiently stable 
        and regular to enable such family fisherman to make payments 
        under a plan under chapter 12 of this title;''.
    (b) Who May Be a Debtor.--Section 109(f) of title 11, United States 
Code, is amended by inserting ``or family fisherman'' after ``family 
farmer''.
    (c)  Chapter 12.--Chapter 12 of title 11, United States Code, is 
amended--
            (1) in the chapter heading, by inserting ``OR FISHERMAN'' 
        after ``FAMILY FARMER'';
            (2) in section 1201, by adding at the end the following:
    ``(e)(1) Notwithstanding any other provision of law, for purposes 
of this subsection, a guarantor of a claim of a creditor under this 
section shall be treated in the same manner as a creditor with respect 
to the operation of a stay under this section.
    ``(2) For purposes of a claim that arises from the ownership or 
operation of a commercial fishing operation, a co-maker of a loan made 
by a creditor under this section shall be treated in the same manner as 
a creditor with respect to the operation of a stay under this 
section.'';
            (3) in section 1203, by inserting ``or commercial fishing 
        operation'' after ``farm'';
            (4) in section 1206, by striking ``if the property is 
        farmland or farm equipment'' and inserting ``if the property is 
        farmland, farm equipment, or property of a commercial fishing 
        operation (including a commercial fishing vessel)''; and
            (5) by adding at the end the following:
``Sec. 1232. Additional provisions relating to family fishermen
    ``(a)(1) Notwithstanding any other provision of law, except as 
provided in subsection (c), with respect to any commercial fishing 
vessel of a family fisherman, the debts of that family fisherman shall 
be treated in the manner prescribed in paragraph (2).
    ``(2)(A) For purposes of this chapter, a claim for a lien described 
in subsection (b) for a commercial fishing vessel of a family fisherman 
that could, but for this subsection, be subject to a lien under 
otherwise applicable maritime law, shall be treated as an unsecured 
claim.
    ``(B) Subparagraph (A) applies to a claim for a lien resulting from 
a debt of a family fisherman incurred on or after the date of enactment 
of this chapter.
    ``(b) A lien described in this subsection is--
            ``(1) a maritime lien under subchapter III of chapter 313 
        of title 46 without regard to whether that lien is recorded 
        under section 31343 of title 46; or
            ``(2) a lien under applicable State law (or the law of a 
        political subdivision thereof).
    ``(c) Subsection (a) shall not apply to--
            ``(1) a claim made by a member of a crew or a seaman 
        including a claim made for--
                    ``(A) wages, maintenance, or cure; or
                    ``(B) personal injury; or
            ``(2) a preferred ship mortgage that has been perfected 
        under subchapter II of chapter 313 of title 46.
    ``(d) For purposes of this chapter, a mortgage described in 
subsection (c)(2) shall be treated as a secured claim.''.
    (d) Clerical Amendments.--
            (1) Table of chapters.--In the table of chapters for title 
        11, United States Code, the item relating to chapter 12, is 
        amended to read as follows:

``12. Adjustments of Debts of a Family Farmer or Family         1201''.
                            Fisherman with Regular Annual 
                            Income.

            (2) Table of sections.--The table of sections for chapter 
        12 of title 11, United States Code, is amended by adding at the 
        end the following new item:

``1232. Additional provisions relating to family fishermen.''.

    (e) Magnuson-Stevens Fishery Conservation and Management Act.--
Nothing in this title is intended to change, affect, or amend the 
Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 
1801 et seq.).

SEC. 1227. COMPENSATING TRUSTEES.

    Title 11, United States Code, is amended--
            (1) in section 104(b)(1) in the matter preceding 
        subparagraph (A) by--
                    (A) striking ``and 523(a)(2)(C)''; and
                    (B) inserting ``523(a)(2)(C), and 1326(b)(3)'' 
                before ``immediately'';
            (2) in section 326, by inserting at the end the following:
    ``(e) Notwithstanding any other provision of this section, if a 
trustee in a chapter 7 case commences a motion to dismiss or convert 
under section 707(b) and such motion is granted, the court shall allow 
reasonable compensation under section 330(a) of this title for the 
services and expenses of the trustee and the trustee's counsel in 
preparing and presenting such motion and any related appeals.''; and
            (3) in section 1326(b)--
                    (A) in paragraph (1), by striking ``and'';
                    (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) if a chapter 7 trustee has been allowed compensation 
        under section 326(e) in a case converted to this chapter or in 
        a case dismissed under section 707(b) in which the debtor in 
        this case was a debtor--
                    ``(A) the amount of such unpaid compensation which 
                shall be paid monthly by prorating such amount over the 
                remaining duration of the plan, but a monthly payment 
                shall not exceed the greater of--
                            ``(i) $25; or
                            ``(ii) the amount payable to unsecured 
                        nonpriority creditors as provided by the plan 
                        multiplied by 5 percent, and the result divided 
                        by the number of months in the plan; and
                    ``(B) notwithstanding any other provision of this 
                title--
                            ``(i) such compensation is payable and may 
                        be collected by the trustee under this 
                        paragraph even if such amount has been 
                        discharged in a prior proceeding under this 
                        title; and
                            ``(ii) such compensation is payable in a 
                        case under this chapter only to the extent 
                        permitted by this paragraph.''.

SEC. 1228. AMENDMENT TO SECTION 362 OF TITLE 11, UNITED STATES CODE.

    Section 362(b)(18) of title 11, United States Code, is amended to 
read as follows:
            ``(18) under subsection (a) of the creation or perfection 
        of a statutory lien for an ad valorem property tax, or a 
        special tax or special assessment on real property whether or 
        not ad valorem, imposed by a governmental unit, if such tax or 
        assessment comes due after the filing of the petition.''.

SEC. 1229. PROVISION OF ELECTRONIC FTC PAMPHLET WITH ELECTRONIC CREDIT 
              CARD APPLICATIONS AND SOLICITATIONS.

    Section 127(c) of the Truth in Lending Act (15 U.S.C. 1637(c)) is 
amended--
            (1) by redesignating paragraph (5) as paragraph (6); and
            (2) by inserting after paragraph (4) the following:
            ``(5) Inclusion of federal trade commission pamphlet.--
                    ``(A) In general.--Any application to open a credit 
                card account for any person under an open end consumer 
                credit plan, or a solicitation or an advertisement to 
                open such an account without requiring an application, 
                that is electronically transmitted to or accessed by a 
                consumer shall be accompanied by an electronic version 
                (or an electronic link thereto) of the pamphlet 
                published by the Federal Trade Commission relating to 
                choosing and using credit cards.
                    ``(B) Costs.--The card issuer with respect to an 
                account described in subparagraph (A) shall be 
                responsible for all costs associated with compliance 
                with that subparagraph.''.

SEC. 1230. NO BANKRUPTCY FOR INSOLVENT POLITICAL COMMITTEES.

    Section 105 of title 11, United States Code, is amended by 
inserting at the end the following:
    ``(e) A political committee subject to the jurisdiction of the 
Federal Election Commission under Federal election laws may not file 
for bankruptcy under this title.''.

SEC. 1231. FEDERAL ELECTION LAW FINES AND PENALTIES AS NONDISCHARGEABLE 
              DEBT.

    Section 523(a) of title 11, United States Code, is amended by 
inserting after paragraph (14A) the following:
            ``(14B) fines or penalties imposed under Federal election 
        law;''.

SEC. 1232. PROHIBITION ON CERTAIN RETROACTIVE FINANCE CHARGES.

    Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is amended 
by adding at the end the following:
    ``(h) Prohibition on Retroactive Finance Charges.--
            ``(1) In general.--In the case of any credit card account 
        under an open end credit plan, if the creditor provides a grace 
        period applicable to any new extension of credit under the 
        account, no finance charge may be imposed subsequent to the 
        grace period with regard to any amount that was paid on or 
        before the end of that grace period.
            ``(2) Definition.--For purposes of this subsection, the 
        term `grace period' means a period during which the extension 
        of credit may be repaid, in whole or in part, without incurring 
        a finance charge for the extension of credit.''.

SEC. 1233. SENSE OF SENATE CONCERNING CREDIT WORTHINESS.

    The Board of Governors of the Federal Reserve System shall report 
to the Senate Committee on Banking, Housing, and Urban Affairs and the 
House of Representatives Committee on Banking and Financial Services 
within 6 months of enactment of this Act as to whether and how the 
location of the residence of an applicant for a credit card is 
considered by financial institutions in deciding whether an applicant 
should be granted such credit card.

SEC. 1234. JUDICIAL EDUCATION.

    The Director of the Administrative Office of the United States 
Courts, in consultation with the Director of the Executive Office for 
United States Trustees, shall develop materials and conduct such 
training as may be useful to courts in implementing this Act, including 
the requirements relating to the 707(b) means test and reaffirmations.

SEC. 1235. UNITED STATES TRUSTEE PROGRAM FILING FEE INCREASE.

    (a) Rights and Powers of the Trustee.--Section 546(c) of title 11, 
United States Code, is amended to read as follows:
            ``(c)(1) Except as provided in subsection (d) of this 
        section, and except as provided in subsection (c) of section 
        507, the rights and powers of the trustee under sections 
        544(a), 545, 547, and 549 are subject to the right of a seller 
        of goods that has sold goods to the debtor, in the ordinary 
        course of the business of the seller, to reclaim such goods if 
        the debtor has received such goods within 45 days prior to the 
        commencement of a case under this title, but such seller may 
        not reclaim any such goods unless the seller demands in writing 
        the reclamation of such goods--
                    ``(A) before 45 days after the date of receipt of 
                such goods by the debtor; or
                    ``(B) if such 45-day period expires after the 
                commencement of the case, before 20 days after the date 
                of commencement of the case.
            ``(2) Notwithstanding the failure of the seller to provide 
        notice in a manner consistent with this subsection, the seller 
        shall be entitled to assert the rights established in section 
        503(b)(7) of this title.''.
    (b) Administrative Expenses.--Section 503(b) of title 11, United 
States Code, is amended--
            (1) in paragraph (5), by striking ``and'' at the end;
            (2) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(7) the invoice price of any goods received by the debtor 
        within 20 days of the date of filing of a case under this title 
        where the goods have been sold to the debtor in the ordinary 
        course of such seller's business.''.

SEC. 1236. PROVIDING REQUESTED TAX DOCUMENTS TO THE COURT.

    In the case of an individual under chapter 7, the court shall not 
grant a discharge unless requested tax documents have been provided to 
the court. In the case of an individual under chapter 11 or 13, the 
court shall not confirm a plan of reorganization unless requested tax 
documents have been filed with the court.

SEC. 1237. DEFINITION OF FAMILY FARMER.

    Section 101(18) of title 11, United States Code, is amended--
            (1) in subparagraph (A) by--
                    (A) striking ``$1,500,000'' and inserting 
                ``$3,000,000''; and
                    (B) striking ``80'' and inserting ``50''; and
            (2) in subparagraph (B)(ii) by striking ``$1,500,000'' and 
        inserting ``$3,000,000''.

SEC. 1238. ENCOURAGING CREDITWORTHINESS.

    (a) Sense of the Congress.--It is the sense of the Congress that--
            (1) certain lenders may sometimes offer credit to consumers 
        indiscriminately, without taking steps to ensure that consumers 
        are capable of repaying the resulting debt, and in a manner 
        which may encourage certain consumers to accumulate additional 
        debt; and
            (2) resulting consumer debt may increasingly be a major 
        contributing factor to consumer insolvency.
    (b) Study Required.--The Board of Governors of the Federal Reserve 
System (hereafter in this section referred to as the ``Board'') shall 
conduct a study of--
            (1) consumer credit industry practices of soliciting and 
        extending credit--
                    (A) indiscriminately;
                    (B) without taking steps to ensure that consumers 
                are capable of repaying the resulting debt; and
                    (C) in a manner that encourages consumers to 
                accumulate additional debt; and
            (2) the effects of such practices on consumer debt and 
        insolvency.
    (c) Report and Regulations.--Not later than 12 months after the 
date of enactment of this Act, the Board--
            (1) shall make public a report on its findings with respect 
        to the indiscriminate solicitation and extension of credit by 
        the credit industry;
            (2) may issue regulations that would require additional 
        disclosures to consumers; and
            (3) may take any other actions, consistent with its 
        existing statutory authority, that the Board finds necessary to 
        ensure responsible industrywide practices and to prevent 
        resulting consumer debt and insolvency.

SEC. 1239. PROPERTY NO LONGER SUBJECT TO REDEMPTION.

    Section 541(b) of title 11 of the United States Code is amended by 
adding at the end the following:
            ``(6) any interest of the debtor in property where the 
        debtor pledged or sold tangible personal property (other than 
        securities or written or printed evidences of indebtedness or 
        title) as collateral for a loan or advance of money, where--
                    ``(A) the tangible personal property is in the 
                possession of the pledgee or transferee;
                    ``(B) the debtor has no obligation to repay the 
                money, redeem the collateral, or buy back the property 
                at a stipulated price; and
                    ``(C) neither the debtor nor the trustee have 
                exercised any right to redeem provided under the 
                contract or State law, in a timely manner as provided 
                under State law and section 108(b) of this title.''.

SEC. 1240. AVAILABILITY OF TOLL-FREE ACCESS TO INFORMATION.

    Section 127(b)(11) of the Truth in Lending Act (15 U.S.C. 1637(b)), 
as added by this Act, is amended by adding at the end the following:
            ``(K) A creditor that maintains a toll-free telephone 
        number for the purpose of providing customers with the actual 
        number of months that it will take to repay an outstanding 
        balance shall include the following statement on each billing 
        statement: `Making only the minimum payment will increase the 
        interest you pay and the time it takes to repay your balance. 
        For more information, call this toll-free number: ________.'. 
        ''.

     TITLE XIII--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS

SEC. 1301. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as provided otherwise in this Act, this 
Act and the amendments made by this Act shall take effect 180 days 
after the date of enactment of this Act.
    (b) Application of Amendments.--The amendments made by this Act 
shall not apply with respect to cases commenced under title 11, United 
States Code, before the effective date of this Act.

        TITLE XIV--FINANCIAL INSTITUTIONS INSOLVENCY IMPROVEMENT

SEC. 1401. SHORT TITLE.

    This title may be cited as the ``Financial Institutions Insolvency 
Improvement Act of 2000''.

SEC. 1402. TREATMENT OF CERTAIN AGREEMENTS BY CONSERVATORS OR RECEIVERS 
              OF INSURED DEPOSITORY INSTITUTIONS.

    (a) Definition of Qualified Financial Contract.--Section 
11(e)(8)(D)(i) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)(D)(i)) is amended by inserting ``, resolution, or order'' 
after ``any similar agreement that the Corporation determines by 
regulation''.
    (b) Definition of Securities Contract.--Section 11(e)(8)(D)(ii) of 
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(ii)) is 
amended to read as follows:
                            ``(ii) Securities contract.--The term 
                        `securities contract'--
                                    ``(I) means a contract for the 
                                purchase, sale, or loan of a security, 
                                a certificate of deposit, a mortgage 
                                loan, or any interest in a mortgage 
                                loan, a group or index of securities, 
                                certificates of deposit, or mortgage 
                                loans or interests therein (including 
                                any interest therein or based on the 
                                value thereof) or any option on any of 
                                the foregoing, including any option to 
                                purchase or sell any such security, 
                                certificate of deposit, loan, interest, 
                                group or index, or option;
                                    ``(II) does not include any 
                                purchase, sale, or repurchase 
                                obligation under a participation in a 
                                commercial mortgage loan unless the 
                                Corporation determines by regulation, 
                                resolution, or order to include any 
                                such agreement within the meaning of 
                                such term;
                                    ``(III) means any option entered 
                                into on a national securities exchange 
                                relating to foreign currencies;
                                    ``(IV) means the guarantee by or to 
                                any securities clearing agency of any 
                                settlement of cash, securities, 
                                certificates of deposit, mortgage loans 
                                or interests therein, group or index of 
                                securities, certificates of deposit, or 
                                mortgage loans or interests therein 
                                (including any interest therein or 
                                based on the value thereof) or option 
                                on any of the foregoing, including any 
                                option to purchase or sell any such 
                                security, certificate of deposit, loan, 
                                interest, group or index or option;
                                    ``(V) means any margin loan;
                                    ``(VI) means any other agreement or 
                                transaction that is similar to any 
                                agreement or transaction referred to in 
                                this clause (other than subclause 
                                (II));
                                    ``(VII) means any combination of 
                                the agreements or transactions referred 
                                to in this clause (other than subclause 
                                (II));
                                    ``(VIII) means any option to enter 
                                into any agreement or transaction 
                                referred to in this clause (other than 
                                subclause (II));
                                    ``(IX) means a master agreement 
                                that provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (III), (IV), (V), (VI), (VII), or 
                                (VIII), together with all supplements 
                                to any such master agreement, without 
                                regard to whether the master agreement 
                                provides for an agreement or 
                                transaction that is not a securities 
                                contract under this clause, except that 
                                the master agreement shall be 
                                considered to be a securities contract 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (III), (IV), (V), (VI), 
                                (VII), or (VIII); and
                                    ``(X) means any security agreement 
                                or arrangement or other credit 
                                enhancement related to any agreement or 
                                transaction referred to in this clause 
                                (other than subclause (II)).''.
    (c) Definition of Commodity Contract.--Section 11(e)(8)(D)(iii) of 
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(iii)) is 
amended to read as follows:
                            ``(iii) Commodity contract.--The term 
                        `commodity contract' means--
                                    ``(I) with respect to a futures 
                                commission merchant, a contract for the 
                                purchase or sale of a commodity for 
                                future delivery on, or subject to the 
                                rules of, a contract market or board of 
                                trade;
                                    ``(II) with respect to a foreign 
                                futures commission merchant, a foreign 
                                future;
                                    ``(III) with respect to a leverage 
                                transaction merchant, a leverage 
                                transaction;
                                    ``(IV) with respect to a clearing 
                                organization, a contract for the 
                                purchase or sale of a commodity for 
                                future delivery on, or subject to the 
                                rules of, a contract market or board of 
                                trade that is cleared by such clearing 
                                organization, or commodity option 
                                traded on, or subject to the rules of, 
                                a contract market or board of trade 
                                that is cleared by such clearing 
                                organization;
                                    ``(V) with respect to a commodity 
                                options dealer, a commodity option;
                                    ``(VI) any other agreement or 
                                transaction that is similar to any 
                                agreement or transaction referred to in 
                                this clause;
                                    ``(VII) any combination of the 
                                agreements or transactions referred to 
                                in this clause;
                                    ``(VIII) any option to enter into 
                                any agreement or transaction referred 
                                to in this clause;
                                    ``(IX) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (II), (III), (IV), (V), (VI), 
                                (VII), or (VIII), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                commodity contract under this clause, 
                                except that the master agreement shall 
                                be considered to be a commodity 
                                contract under this clause only with 
                                respect to each agreement or 
                                transaction under the master agreement 
                                that is referred to in subclause (I), 
                                (II), (III), (IV), (V), (VI), (VII), or 
                                (VIII); or
                                    ``(X) a security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreement or transaction 
                                referred to in this clause.''.
    (d) Definition of Forward Contract.--Section 11(e)(8)(D)(iv) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(iv)) is amended 
to read as follows:
                            ``(iv) Forward contract.--The term `forward 
                        contract' means--
                                    ``(I) a contract (other than a 
                                commodity contract) for the purchase, 
                                sale, or transfer of a commodity or any 
                                similar good, article, service, right, 
                                or interest which is presently or in 
                                the future becomes the subject of 
                                dealing in the forward contract trade, 
                                or product or byproduct thereof, with a 
                                maturity date that is more than 2 days 
                                after the date on which the contract is 
                                entered into, including a repurchase 
                                agreement, reverse repurchase 
                                agreement, consignment, lease, swap, 
                                hedge transaction, deposit, loan, 
                                option, allocated transaction, 
                                unallocated transaction, or any other 
                                similar agreement;
                                    ``(II) any combination of 
                                agreements or transactions referred to 
                                in subclauses (I) and (III);
                                    ``(III) any option to enter into 
                                any agreement or transaction referred 
                                to in subclause (I) or (II);
                                    ``(IV) a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclauses 
                                (I), (II), or (III), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                forward contract under this clause, 
                                except that the master agreement shall 
                                be considered to be a forward contract 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (II), or (III); or
                                    ``(V) a security agreement or 
                                arrangement or other credit enhancement 
                                related to any agreement or transaction 
                                referred to in subclause (I), (II), 
                                (III), or (IV).''.
    (e) Definition of Repurchase Agreement and Reverse Repurchase 
Agreement.--Section 11(e)(8)(D)(v) of the Federal Deposit Insurance Act 
(12 U.S.C. 1821(e)(8)(D)(v)) is amended to read as follows:
                            ``(v) Repurchase agreement; reverse 
                        repurchase agreement.--The terms `repurchase 
                        agreement' and `reverse repurchase agreement'--
                                    ``(I) mean an agreement, including 
                                related terms, which provides for the 
                                transfer of 1 or more certificates of 
                                deposit, mortgage-related securities 
                                (as such term is defined in the 
                                Securities Exchange Act of 1934), 
                                mortgage loans, interests in mortgage-
                                related securities or mortgage loans, 
                                eligible bankers' acceptances, 
                                qualified foreign government securities 
                                or securities that are direct 
                                obligations of, or that are fully 
                                guaranteed by, the United States or any 
                                agency of the United States against the 
                                transfer of funds by the transferee of 
                                such certificates of deposit, eligible 
                                bankers' acceptances, securities, 
                                loans, or interests with a simultaneous 
                                agreement by such transferee to 
                                transfer to the transferor thereof 
                                certificates of deposit, eligible 
                                bankers' acceptances, securities, 
                                loans, or interests as described in 
                                this subclause, at a date certain that 
                                is not later than 1 year after the date 
                                of such transfers or on demand, against 
                                the transfer of funds, or any other 
                                similar agreement;
                                    ``(II) does not include any 
                                repurchase obligation under a 
                                participation in a commercial mortgage 
                                loan unless the Corporation determines 
                                by regulation, resolution, or order to 
                                include any such participation within 
                                the meaning of such term;
                                    ``(III) means any combination of 
                                agreements or transactions referred to 
                                in subclauses (I) and (IV);
                                    ``(IV) means any option to enter 
                                into any agreement or transaction 
                                referred to in subclause (I) or (III);
                                    ``(V) means a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (III), or (IV), together with all 
                                supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement provides for an 
                                agreement or transaction that is not a 
                                repurchase agreement under this clause, 
                                except that the master agreement shall 
                                be considered to be a repurchase 
                                agreement under this subclause only 
                                with respect to each agreement or 
                                transaction under the master agreement 
                                that is referred to in subclause (I), 
                                (III), or (IV); and
                                    ``(VI) means a security agreement 
                                or arrangement or other credit 
                                enhancement related to any agreement or 
                                transaction referred to in subclause 
                                (I), (III), (IV), or (V).
                        For purposes of this clause, the term 
                        `qualified foreign government security' means a 
                        security that is a direct obligation of, or 
                        that is fully guaranteed by, the central 
                        government of a member of the Organization for 
                        Economic Cooperation and Development (as 
                        determined by regulation or order adopted by 
                        the appropriate Federal banking authority).''.
    (f) Definition of Swap Agreement.--The Federal Deposit Insurance 
Act (12 U.S.C. 1821(e)(8)(D)(vi)) is amended to read as follows:
                            ``(vi) Swap agreement.--The term `swap 
                        agreement'--
                                    ``(I) means any agreement, 
                                including the terms and conditions 
                                incorporated by reference in any such 
                                agreement, that is--
                                            ``(aa) an interest rate 
                                        swap, option, future, or 
                                        forward agreement, including a 
                                        rate floor, rate cap, rate 
                                        collar, cross-currency rate 
                                        swap, and basis swap;
                                            ``(bb) a spot, same day-
                                        tomorrow, tomorrow-next, 
                                        forward, or other foreign 
                                        exchange or precious metals 
                                        agreement;
                                            ``(cc) a currency swap, 
                                        option, future, or forward 
                                        agreement;
                                            ``(dd) an equity index or 
                                        equity swap, option, future, or 
                                        forward agreement;
                                            ``(ee) a debt index or debt 
                                        swap, option, future, or 
                                        forward agreement;
                                            ``(ff) a credit spread or 
                                        credit swap, option, future, or 
                                        forward agreement; or
                                            ``(gg) a commodity index or 
                                        commodity swap, option, future, 
                                        or forward agreement;
                                    ``(II) means any agreement or 
                                transaction that is similar to any 
                                other agreement or transaction referred 
                                to in this clause, that is presently, 
                                or in the future becomes, regularly 
                                entered into in the swap market 
                                (including terms and conditions 
                                incorporated by reference in such 
                                agreement), and that is a forward, 
                                swap, future, or option on 1 or more 
                                rates, currencies, commodities, equity 
                                securities or other equity instruments, 
                                debt securities or other debt 
                                instruments, or economic indices or 
                                measures of economic risk or value;
                                    ``(III) means any combination of 
                                agreements or transactions referred to 
                                in this clause;
                                    ``(IV) means any option to enter 
                                into any agreement or transaction 
                                referred to in this clause;
                                    ``(V) means a master agreement that 
                                provides for an agreement or 
                                transaction referred to in subclause 
                                (I), (II), (III), or (IV), together 
                                with all supplements to any such master 
                                agreement, without regard to whether 
                                the master agreement contains an 
                                agreement or transaction that is not a 
                                swap agreement under this clause, 
                                except that the master agreement shall 
                                be considered to be a swap agreement 
                                under this clause only with respect to 
                                each agreement or transaction under the 
                                master agreement that is referred to in 
                                subclause (I), (II), (III), or (IV);
                                    ``(VI) means any security agreement 
                                or arrangement or other credit 
                                enhancement related to any agreements 
                                or transactions referred to in 
                                subparagraph (I), (II), (III), or (IV); 
                                and
                                    ``(VII) is applicable for purposes 
                                of this Act only, and shall not be 
                                construed or applied so as to challenge 
                                or affect the characterization, 
                                definition, or treatment of any swap 
                                agreement under any other statute, 
                                regulation, or rule, including the 
                                Securities Act of 1933, the Securities 
                                Exchange Act of 1934, the Public 
                                Utility Holding Company Act of 1935, 
                                the Trust Indenture Act of 1939, the 
                                Investment Company Act of 1940, the 
                                Investment Advisers Act of 1940, the 
                                Securities Investor Protection Act of 
                                1970, the Commodity Exchange Act, and 
                                the regulations promulgated by the 
                                Securities and Exchange Commission or 
                                the Commodity Futures Trading 
                                Commission.''.
    (g) Definition of Transfer.--Section 11(e)(8)(D)(viii) of the 
Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(viii)) is 
amended to read as follows:
                            ``(viii) Transfer.--The term `transfer' 
                        means every mode, direct or indirect, absolute 
                        or conditional, voluntary or involuntary, of 
                        disposing of or parting with property or with 
                        an interest in property, including retention of 
                        title as a security interest and foreclosure of 
                        the depository institutions's equity of 
                        redemption.''.
    (h) Treatment of Qualified Financial Contracts.--Section 11(e)(8) 
of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)) is 
amended--
            (1) in subparagraph (A), by striking ``paragraph (10)'' and 
        inserting ``paragraphs (9) and (10)'';
            (2) in subparagraph (A)(i), by striking ``to cause the 
        termination or liquidation'' and inserting ``such person has to 
        cause the termination, liquidation, or acceleration'';
            (3) by striking clause (ii) of subparagraph (A) and 
        inserting the following:
                            ``(ii) any right under any security 
                        agreement or arrangement or other credit 
                        enhancement related to 1 or more qualified 
                        financial contracts described in clause (i); 
                        or''; and
            (4) by striking clause (ii) of subparagraph (E) and 
        inserting the following:
                            ``(ii) any right under any security 
                        agreement or arrangement or other credit 
                        enhancement related to 1 or more qualified 
                        financial contracts described in clause (i); 
                        or''.
    (i) Avoidance of Transfers.--Section 11(e)(8)(C)(i) of the Federal 
Deposit Insurance Act (12 U.S.C. 1821(e)(8)(C)(i)) is amended by 
inserting ``section 5242 of the Revised Statutes (12 U.S.C. 91), or any 
other Federal or State law relating to the avoidance of preferential or 
fraudulent transfers,'' before ``the Corporation''.

SEC. 1403. AUTHORITY OF THE CORPORATION WITH RESPECT TO FAILED AND 
              FAILING INSTITUTIONS.

    (a) In General.--Section 11(e)(8) of the Federal Deposit Insurance 
Act (12 U.S.C. 1821(e)(8)) is amended--
            (1) in subparagraph (E), by striking ``other than paragraph 
        (12) of this subsection, subsection (d)(9)'' and inserting 
        ``other than subsections (d)(9) and (e)(10)''; and
            (2) by adding at the end the following:
                    ``(F) Clarification.--No provision of law shall be 
                construed as limiting the right or power of the 
                Corporation, or authorizing any court or agency to 
                limit or delay, in any manner, the right or power of 
                the Corporation to transfer any qualified financial 
                contract in accordance with paragraphs (9) and (10) or 
                to disaffirm or repudiate any such contract in 
                accordance with subsection (e)(1).
                    ``(G) Walkaway clauses not effective.--
                            ``(i) In general.--Notwithstanding the 
                        provisions of subparagraphs (A) and (E), and 
                        sections 403 and 404 of the Federal Deposit 
                        Insurance Corporation Improvement Act of 1991, 
                        no walkaway clause shall be enforceable in a 
                        qualified financial contract of an insured 
                        depository institution in default.
                            ``(ii) Walkaway clause defined.--For 
                        purposes of this subparagraph, the term 
                        `walkaway clause' means a provision in a 
                        qualified financial contract that, after 
                        calculation of a value of a party's position or 
                        an amount due to or from 1 of the parties in 
                        accordance with its terms upon termination, 
                        liquidation, or acceleration of the qualified 
                        financial contract, either does not create a 
                        payment obligation of a party or extinguishes a 
                        payment obligation of a party in whole or in 
                        part solely because of such party's status as a 
                        nondefaulting party.''.
    (b) Technical and Conforming Amendment.--Section 11(e)(12)(A) of 
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(12)(A)) is amended 
by inserting ``or the exercise of rights or powers by'' after ``the 
appointment of''.

SEC. 1404. AMENDMENTS RELATING TO TRANSFERS OF QUALIFIED FINANCIAL 
              CONTRACTS.

    (a) Transfers of Qualified Financial Contracts to Financial 
Institutions.--Section 11(e)(9) of the Federal Deposit Insurance Act 
(12 U.S.C. 1821(e)(9)) is amended to read as follows:
            ``(9) Transfer of qualified financial contracts.--
                    ``(A) In general.--In making any transfer of assets 
                or liabilities of a depository institution in default 
                which includes any qualified financial contract, the 
                conservator or receiver for such depository institution 
                shall either--
                            ``(i) transfer to 1 financial institution, 
                        other than a financial institution for which a 
                        conservator, receiver, trustee in bankruptcy, 
                        or other legal custodian has been appointed or 
                        which is otherwise the subject of a bankruptcy 
                        or insolvency proceeding--
                                    ``(I) all qualified financial 
                                contracts between any person or any 
                                affiliate of such person and the 
                                depository institution in default;
                                    ``(II) all claims of such person or 
                                any affiliate of such person against 
                                such depository institution under any 
                                such contract (other than any claim 
                                which, under the terms of any such 
                                contract, is subordinated to the claims 
                                of general unsecured creditors of such 
                                institution);
                                    ``(III) all claims of such 
                                depository institution against such 
                                person or any affiliate of such person 
                                under any such contract; and
                                    ``(IV) all property securing or any 
                                other credit enhancement for any 
                                contract described in subclause (I) or 
                                any claim described in subclause (II) 
                                or (III) under any such contract; or
                            ``(ii) transfer none of the qualified 
                        financial contracts, claims, property, or other 
                        credit enhancement referred to in clause (i) 
                        (with respect to such person and any affiliate 
                        of such person).
                    ``(B) Transfer to foreign bank, foreign financial 
                institution, or branch or agency of a foreign bank or 
                financial institution.--In transferring any qualified 
                financial contract and related claims and property 
                pursuant to subparagraph (A)(i), the conservator or 
                receiver for the depository institution shall not make 
                such transfer to a foreign bank, financial institution 
                organized under the laws of a foreign country, or a 
                branch or agency of a foreign bank or financial 
                institution unless, under the law applicable to such 
                bank, financial institution, branch, or agency, to the 
                qualified financial contract, and to any netting 
                contract, any security agreement or arrangement or 
                other credit enhancement related to 1 or more qualified 
                financial contracts the contractual rights of the 
                parties to such qualified financial contracts, netting 
                contracts, security agreements, or arrangements, or 
                other credit enhancements are enforceable substantially 
                to the same extent as permitted under this section.
                    ``(C) Transfer of contract subject to the rules of 
                a clearing organization.--If a conservator or receiver 
                transfers any qualified financial contract and related 
                claims, property, and credit enhancements pursuant to 
                subparagraph (A)(i) and such contract is subject to the 
                rules of a clearing organization, the clearing 
                organization shall not be required to accept the 
                transferee as a member by virtue of the transfer.
                    ``(D) Definition.--For purposes of this paragraph, 
                the term `financial institution' means a broker or 
                dealer, a depository institution, a futures commission 
                merchant, or any other institution that the Corporation 
                determines, by regulation, to be a financial 
                institution.''.
    (b) Notice to Qualified Financial Contract Counterparties.--Section 
11(e)(10)(A) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(10)(A)) is amended by striking the flush material immediately 
following clause (ii) and inserting the following:
                ``the conservator or receiver shall notify any person 
                who is a party to any such contract of such transfer by 
                5:00 p.m. (eastern time) on the business day following 
                the date of the appointment of the receiver in the case 
                of a receivership, or the business day following such 
                transfer in the case of a conservatorship.''.
    (c) Rights Against Receiver and Treatment of Bridge Banks.--Section 
11(e)(10) of the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(10)) 
is amended--
            (1) by redesignating subparagraph (B) as subparagraph (D); 
        and
            (2) by inserting after subparagraph (A) the following:
                    ``(B) Certain rights not enforceable.--
                            ``(i) Receivership.--A person who is a 
                        party to a qualified financial contract with an 
                        insured depository institution may not exercise 
                        any right such person has to terminate, 
                        liquidate, or net such contract under paragraph 
                        (8)(A) or section 403 or 404 of the Federal 
                        Deposit Insurance Corporation Improvement Act 
                        of 1991, solely by reason of or incidental to 
                        the appointment of a receiver for the 
                        depository institution (or the insolvency or 
                        financial condition of the depository 
                        institution for which the receiver has been 
                        appointed)--
                                    ``(I) until 5:00 p.m. (eastern 
                                time) on the business day following the 
                                date of the appointment of the 
                                receiver; or
                                    ``(II) after the person has 
                                received notice that the contract has 
                                been transferred pursuant to paragraph 
                                (9)(A).
                            ``(ii) Conservatorship.--A person who is a 
                        party to a qualified financial contract with an 
                        insured depository institution may not exercise 
                        any right such person has to terminate, 
                        liquidate, or net such contract under paragraph 
                        (8)(E) or section 403 or 404 of the Federal 
                        Deposit Insurance Corporation Improvement Act 
                        of 1991, solely by reason of or incidental to 
                        the appointment of a conservator for the 
                        depository institution (or the insolvency or 
                        financial condition of the depository 
                        institution for which the conservator has been 
                        appointed).
                            ``(iii) Notice.--For purposes of this 
                        paragraph, the Corporation as receiver or 
                        conservator of an insured depository 
                        institution shall be deemed to have notified a 
                        person who is a party to a qualified financial 
                        contract with such depository institution if 
                        the Corporation has taken steps reasonably 
                        calculated to provide notice to such person by 
                        the time specified in subparagraph (A).
                    ``(C) Treatment of bridge banks.--A financial 
                institution for which a conservator, receiver, trustee 
                in bankruptcy, or other legal custodian has been 
                appointed or that is otherwise the subject of a 
                bankruptcy or insolvency proceeding for purposes of 
                subsection (e)(9) does not include--
                            ``(i) a bridge bank; or
                            ``(ii) a depository institution organized 
                        by the Corporation, for which a conservator is 
                        appointed either--
                                    ``(I) immediately upon the 
                                organization of the institution; or
                                    ``(II) at the time of a purchase 
                                and assumption transaction between such 
                                institution and the Corporation as 
                                receiver for a depository institution 
                                in default.''.

SEC. 1405. AMENDMENTS RELATING TO DISAFFIRMANCE OR REPUDIATION OF 
              QUALIFIED FINANCIAL CONTRACTS.

    Section 11(e) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)) is amended--
            (1) by redesignating paragraphs (11) through (15) as 
        paragraphs (12) through (16), respectively;
            (2) in paragraph (8)(C)(i), by striking ``(11)'' and 
        inserting ``(12)'';
            (3) in paragraph (8)(E), by striking ``(12)'' and inserting 
        ``(13)''; and
            (4) by inserting after paragraph (10) the following:
            ``(11) Disaffirmance or repudiation of qualified financial 
        contracts.--In exercising the right to disaffirm or repudiate 
        with respect to any qualified financial contract to which an 
        insured depository institution is a party, the conservator or 
        receiver for such institution shall either--
                    ``(A) disaffirm or repudiate all qualified 
                financial contracts between--
                            ``(i) any person or any affiliate of such 
                        person; and
                            ``(ii) the depository institution in 
                        default; or
                    ``(B) disaffirm or repudiate none of the qualified 
                financial contracts referred to in subparagraph (A) 
                (with respect to such person or any affiliate of such 
                person).''.

SEC. 1406. CLARIFYING AMENDMENT RELATING TO MASTER AGREEMENTS.

    Section 11(e)(8)(D)(vii) of the Federal Deposit Insurance Act (12 
U.S.C. 1821(e)(8)(D)(vii)) is amended to read as follows:
                            ``(vii) Treatment of master agreement as 1 
                        agreement.--Any master agreement for any 
                        contract or agreement described in any 
                        preceding clause of this subparagraph (or any 
                        master agreement for such master agreement or 
                        agreements), together with all supplements to 
                        such master agreement, shall be treated as a 
                        single agreement and a single qualified 
                        financial contract. If a master agreement 
                        contains provisions relating to agreements or 
                        transactions that are not themselves qualified 
                        financial contracts, the master agreement shall 
                        be deemed to be a qualified financial contract 
                        only with respect to those transactions that 
                        are themselves qualified financial 
                        contracts.''.

SEC. 1407. FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT ACT OF 
              1991.

    (a) Definitions.--Section 402 of the Federal Deposit Insurance 
Corporation Improvement Act of 1991 (12 U.S.C. 4402) is amended--
            (1) in paragraph (6)--
                    (A) by redesignating subparagraphs (B) through (D) 
                as subparagraphs (C) through (E), respectively;
                    (B) by inserting after subparagraph (A) the 
                following:
                    ``(B) an uninsured national bank or an uninsured 
                State bank that is a member of the Federal Reserve 
                System, if the national bank or State member bank is 
                not eligible to make application to become an insured 
                bank under section 5 of the Federal Deposit Insurance 
                Act;''; and
                    (C) by striking subparagraph (C) (as redesignated) 
                and inserting the following:
                    ``(C) a branch or agency of a foreign bank, a 
                foreign bank and any branch or agency of the foreign 
                bank, or the foreign bank that established the branch 
                or agency, as those terms are defined in section 1(b) 
                of the International Banking Act of 1978;'';
            (2) in paragraph (11), by inserting before the period ``and 
        any other clearing organization with which such clearing 
        organization has a netting contract'';
            (3) in paragraph (14)(A), by striking clause (i) and 
        inserting the following:
                            ``(i) means a contract or agreement between 
                        2 or more financial institutions, clearing 
                        organizations, or members that provides for 
                        netting present or future payment obligations 
                        or payment entitlements (including liquidation 
                        or closeout values relating to such obligations 
                        or entitlements) among the parties to the 
                        agreement; and''; and
            (4) by adding at the end the following:
            ``(15) Payment.--The term `payment' means a payment of 
        United States dollars, another currency, or a composite 
        currency, and a noncash delivery, including a payment or 
        delivery to liquidate an unmatured obligation.''.
    (b) Enforceability of Bilateral Netting Contracts.--Section 403 of 
the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 
U.S.C. 4403) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) General Rule.--Notwithstanding any other provision of Federal 
or State law (other than paragraphs (8)(E), (8)(F), and (10)(B) of 
section 11(e) of the Federal Deposit Insurance Act or any order 
authorized under section 5(b)(2) of the Securities Investor Protection 
Act of 1970, the covered contractual payment obligations and the 
covered contractual payment entitlements between any 2 financial 
institutions shall be netted in accordance with, and subject to the 
conditions of, the terms of any applicable netting contract (except as 
provided in section 561(b)(2) of title 11, United States Code).''; and
            (2) by adding at the end the following:
    ``(f) Enforceability of Security Agreements.--The provisions of any 
security agreement or arrangement or other credit enhancement related 
to 1 or more netting contracts between any 2 financial institutions 
shall be enforceable in accordance with their terms (except as provided 
in section 561(b)(2) of title 11, United States Code) and shall not be 
stayed, avoided, or otherwise limited by any State or Federal law 
(other than paragraphs (8)(E), (8)(F), and (10)(B) of section 11(e) of 
the Federal Deposit Insurance Act and section 5(b)(2) of the Securities 
Investor Protection Act of 1970).''.
    (c) Enforceability of Clearing Organization Netting Contracts.--
Section 404 of the Federal Deposit Insurance Corporation Improvement 
Act of 1991 (12 U.S.C. 4404) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) General Rule.--Notwithstanding any other provision of Federal 
or State law (other than paragraphs (8)(E), (8)(F), and (10)(B) of 
section 11(e) of the Federal Deposit Insurance Act or any order 
authorized under section 5(b)(2) of the Securities Investor Protection 
Act of 1970) the covered contractual payment obligations and the 
covered contractual payment entitlements of a member of a clearing 
organization to and from all other members of the clearing organization 
shall be netted in accordance with, and subject to the conditions of, 
the terms of any applicable netting contract (except as provided in 
section 561(b)(2) of title 11, United States Code).''; and
            (2) by adding at the end the following:
    ``(h) Enforceability of Security Agreements.--The provisions of any 
security agreement or arrangement or other credit enhancement related 
to 1 or more netting contracts between any 2 members of a clearing 
organization shall be enforceable in accordance with their terms 
(except as provided in section 561(b)(2) of title 11, United States 
Code) and shall not be stayed, avoided, or otherwise limited by any 
State or Federal law (other than paragraphs (8)(E), (8)(F), and (10)(B) 
of section 11(e) of the Federal Deposit Insurance Act and section 
5(b)(2) of the Securities Investor Protection Act of 1970).''.
    (d) Enforceability of Contracts With Uninsured National Banks and 
Uninsured Federal Branches and Agencies.--The Federal Deposit Insurance 
Corporation Improvement Act of 1991 (12 U.S.C. 4401 et seq.) is amended 
by adding at the end the following:

``SEC. 408. TREATMENT OF CONTRACTS WITH UNINSURED NATIONAL BANKS AND 
              UNINSURED FEDERAL BRANCHES AND AGENCIES.

    ``(a) In General.--Notwithstanding any other provision of law, 
paragraphs (8), (9), (10), and (11) of section 11(e) of the Federal 
Deposit Insurance Act shall apply to an uninsured national bank or 
uninsured Federal branch or Federal agency, except that for such 
purpose--
            ``(1) any reference to the `Corporation as receiver' or 
        `the receiver or the Corporation' shall refer to the receiver 
        of an uninsured national bank or uninsured Federal branch or 
        Federal agency appointed by the Comptroller of the Currency;
            ``(2) any reference to the `Corporation' (other than in 
        section 11(e)(8)(D) of that Act), the `Corporation, whether 
        acting as such or as conservator or receiver', a `receiver', or 
        a `conservator' shall refer to the receiver or conservator of 
        an uninsured national bank or uninsured Federal branch or 
        Federal agency appointed by the Comptroller of the Currency; 
        and
            ``(3) any reference to an `insured depository institution' 
        or `depository institution' shall refer to an uninsured 
        national bank or an uninsured Federal branch or Federal agency.
    ``(b) Liability.--The liability of a receiver or conservator of an 
uninsured national bank or uninsured Federal branch or agency shall be 
determined in the same manner and subject to the same limitations that 
apply to receivers and conservators of insured depository institutions 
under section 11(e) of the Federal Deposit Insurance Act.
    ``(c) Regulatory Authority.--
            ``(1) In general.--The Comptroller of the Currency, in 
        consultation with the Federal Deposit Insurance Corporation, 
        may promulgate regulations to implement this section.
            ``(2) Specific requirement.--In promulgating regulations to 
        implement this section, the Comptroller of the Currency shall 
        ensure that the regulations generally are consistent with the 
        regulations and policies of the Federal Deposit Insurance 
        Corporation adopted pursuant to the Federal Deposit Insurance 
        Act.
    ``(d) Definitions.--For purposes of this section, the terms 
`Federal branch', `Federal agency', and `foreign bank' have the same 
meanings as in section 1(b) of the International Banking Act of 
1978.''.

SEC. 1408. RECORDKEEPING REQUIREMENTS.

    Section 11(e)(8) of the Federal Deposit Insurance Act (12 U.S.C. 
1821(e)(8)) is amended by adding at the end the following:
                    ``(H) Recordkeeping requirements.--The Corporation, 
                in consultation with the appropriate Federal banking 
                agencies, may prescribe regulations requiring more 
                detailed recordkeeping with respect to qualified 
                financial contracts (including market valuations) by 
                insured depository institutions.''.

SEC. 1409. EXEMPTIONS FROM CONTEMPORANEOUS EXECUTION REQUIREMENT.

    Section 13(e)(2) of the Federal Deposit Insurance Act (12 U.S.C. 
1823(e)(2)) is amended to read as follows:
            ``(2) Exemptions from contemporaneous execution 
        requirement.--
                    ``(A) In general.--An agreement described in 
                subparagraph (B) shall not be deemed to be invalid 
                pursuant to paragraph (1)(B) solely on the basis--
                            ``(i) that the agreement was not executed 
                        contemporaneously with the acquisition of the 
                        collateral; or
                            ``(ii) of any pledge, delivery, or 
                        substitution of the collateral made in 
                        accordance with the agreement.
                    ``(B) Agreement described.--An agreement is 
                described in this subparagraph if it is an agreement to 
                provide for the lawful collateralization of--
                            ``(i) deposits of, or other credit 
                        extension by, a Federal, State, or local 
                        governmental entity, or of any depositor 
                        referred to in section 11(a)(2), including an 
                        agreement to provide collateral in lieu of a 
                        surety bond;
                            ``(ii) securities deposited under section 
                        345(b)(2) of title 11, United States Code;
                            ``(iii) extensions of credit, including an 
                        overdraft, from a Federal reserve bank or 
                        Federal home loan bank; or
                            ``(iv) 1 or more qualified financial 
                        contracts (as defined in section 
                        11(e)(8)(D)).''.

SEC. 1410. SIPC STAY.

    Section 5(b)(2) of the Securities Investor Protection Act of 1970 
(15 U.S.C. 78eee(b)(2)) is amended by adding at the end the following:
                    ``(C) Exception from stay.--
                            ``(i) In general.--Notwithstanding section 
                        362 of title 11, United States Code, neither 
                        the filing of an application under subsection 
                        (a)(3) of this section nor any order or decree 
                        obtained by SIPC from the court shall operate 
                        as a stay of any contractual right of a 
                        creditor to liquidate, terminate, or accelerate 
                        a securities contract, commodity contract, 
                        forward contract, repurchase agreement, swap 
                        agreement, or master netting agreement, each as 
                        defined in title 11, United States Code, to 
                        offset or net termination values, payment 
                        amounts, or other transfer obligations arising 
                        under or in connection with 1 or more of such 
                        contracts or agreements, or to foreclose on any 
                        cash collateral pledged by the debtor, whether 
                        or not with respect to 1 or more of such 
                        contracts or agreements.
                            ``(ii) Stays on foreclosure.--
                        Notwithstanding clause (i), an application, 
                        order, or decree described therein may operate 
                        as a stay of the foreclosure on securities 
                        collateral pledged by the debtor, whether or 
                        not with respect to 1 or more of such contracts 
                        or agreements, securities sold by the debtor 
                        under a repurchase agreement or securities lent 
                        under a securities lending agreement.
                            ``(iii) Definition.--As used in this 
                        section, the term `contractual right' 
                        includes--
                                    ``(I) a right set forth in a rule 
                                or bylaw of a national securities 
                                exchange, a national securities 
                                association, or a securities clearing 
                                agency;
                                    ``(II) a right set forth in a bylaw 
                                of a clearing organization or contract 
                                market or in a resolution of the 
                                governing board thereof; and
                                    ``(III) a right, whether or not in 
                                writing, arising under common law, 
                                under law merchant, or by reason of 
                                normal business practice.''.

SEC. 1411. FEDERAL RESERVE COLLATERAL REQUIREMENTS.

    Section 16 of the Federal Reserve Act (12 U.S.C. 412) is amended in 
the third sentence of the second undesignated paragraph, by striking 
``acceptances acquired under section 13 of this Act'' and inserting 
``acceptances acquired under section 10A, 10B, 13, or 13A''.

SEC. 1412. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Severability.--If any provision of this title or any amendment 
made by this title, or the application of any such provision or 
amendment to any person or circumstance, is held to be 
unconstitutional, the remaining provisions of and amendments made by 
this title and the application of such other provisions and amendments 
to any person or circumstance shall not be affected thereby.
    (b) Effective Date.--This title and the amendments made by this 
title shall take effect on the date of enactment of this Act.
    (c) Application of Amendments.--The amendments made by this title 
shall apply with respect to cases commenced or appointments made under 
any Federal or State law after the date of enactment of this Act, but 
shall not apply with respect to cases commenced or appointments made 
under any Federal or State law before the date of enactment of this 
Act.

       TITLE XV--METHAMPHETAMINE AND OTHER CONTROLLED SUBSTANCES

SEC. 1501. SHORT TITLE.

    This title may be cited as the ``Methamphetamine Anti-Proliferation 
Act of 2000''.

     Subtitle A--Methamphetamine Production, Trafficking, and Abuse

                     CHAPTER 1--CRIMINAL PENALTIES

SEC. 1511. ENHANCED PUNISHMENT OF AMPHETAMINE LABORATORY OPERATORS.

    (a) Amendment to Federal Sentencing Guidelines.--Pursuant to its 
authority under section 994(p) of title 28, United States Code, the 
United States Sentencing Commission shall amend the Federal sentencing 
guidelines in accordance with this section with respect to any offense 
relating to the manufacture, importation, exportation, or trafficking 
in amphetamine (including an attempt or conspiracy to do any of the 
foregoing) in violation of--
            (1) the Controlled Substances Act (21 U.S.C. 801 et seq.);
            (2) the Controlled Substances Import and Export Act (21 
        U.S.C. 951 et seq.); or
            (3) the Maritime Drug Law Enforcement Act (46 U.S.C. App. 
        1901 et seq.).
    (b) General Requirement.--In carrying out this section, the United 
States Sentencing Commission shall, with respect to each offense 
described in subsection (a) relating to amphetamine--
            (1) review and amend its guidelines to provide for 
        increased penalties such that those penalties are comparable to 
        the base offense level for methamphetamine; and
            (2) take any other action the Commission considers 
        necessary to carry out this subsection.
    (c) Additional Requirements.--In carrying out this section, the 
United States Sentencing Commission shall ensure that the sentencing 
guidelines for offenders convicted of offenses described in subsection 
(a) reflect the heinous nature of such offenses, the need for 
aggressive law enforcement action to fight such offenses, and the 
extreme dangers associated with unlawful activity involving 
amphetamines, including--
            (1) the rapidly growing incidence of amphetamine abuse and 
        the threat to public safety that such abuse poses;
            (2) the high risk of amphetamine addiction;
            (3) the increased risk of violence associated with 
        amphetamine trafficking and abuse; and
            (4) the recent increase in the illegal importation of 
        amphetamine and precursor chemicals.
    (d) Emergency Authority to Sentencing Commission.--The United 
States Sentencing Commission shall promulgate amendments pursuant to 
this section as soon as practicable after the date of the enactment of 
this Act in accordance with the procedure set forth in section 21(a) of 
the Sentencing Act of 1987 (Public Law 100-182), as though the 
authority under that Act had not expired.

SEC. 1512. ENHANCED PUNISHMENT OF AMPHETAMINE OR METHAMPHETAMINE 
              LABORATORY OPERATORS.

    (a) Federal Sentencing Guidelines.--
            (1) In general.--Pursuant to its authority under section 
        994(p) of title 28, United States Code, the United States 
        Sentencing Commission shall amend the Federal sentencing 
        guidelines in accordance with paragraph (2) with respect to any 
        offense relating to the manufacture, attempt to manufacture, or 
        conspiracy to manufacture amphetamine or methamphetamine in 
        violation of--
                    (A) the Controlled Substances Act (21 U.S.C. 801 et 
                seq.);
                    (B) the Controlled Substances Import and Export Act 
                (21 U.S.C. 951 et seq.); or
                    (C) the Maritime Drug Law Enforcement Act (46 
                U.S.C. App. 1901 et seq.).
            (2) Requirements.--In carrying out this paragraph, the 
        United States Sentencing Commission shall--
                    (A) if the offense created a substantial risk of 
                harm to human life (other than a life described in 
                subparagraph (B)) or the environment, increase the base 
                offense level for the offense--
                            (i) by not less than 3 offense levels above 
                        the applicable level in effect on the date of 
                        the enactment of this Act; or
                            (ii) if the resulting base offense level 
                        after an increase under clause (i) would be 
                        less than level 27, to not less than level 27; 
                        or
                    (B) if the offense created a substantial risk of 
                harm to the life of a minor or incompetent, increase 
                the base offense level for the offense--
                            (i) by not less than 6 offense levels above 
                        the applicable level in effect on the date of 
                        the enactment of this Act; or
                            (ii) if the resulting base offense level 
                        after an increase under clause (i) would be 
                        less than level 30, to not less than level 30.
            (3) Emergency authority to sentencing commission.--The 
        United States Sentencing Commission shall promulgate amendments 
        pursuant to this subsection as soon as practicable after the 
        date of enactment of this Act in accordance with the procedure 
        set forth in section 21(a) of the Sentencing Act of 1987 
        (Public Law 100-182), as though the authority under that Act 
        had not expired.
    (b) Effective Date.--The amendments made pursuant to this section 
shall apply with respect to any offense occurring on or after the date 
that is 60 days after the date of enactment of this Act.

SEC. 1513. MANDATORY RESTITUTION FOR VIOLATIONS OF CONTROLLED 
              SUBSTANCES ACT AND CONTROLLED SUBSTANCES IMPORT AND 
              EXPORT ACT RELATING TO AMPHETAMINE AND METHAMPHETAMINE.

    (a) Mandatory Restitution.--Section 413(q) of the Controlled 
Substances Act (21 U.S.C. 853(q)) is amended--
            (1) in the matter preceding paragraph (1), by striking 
        ``may'' and inserting ``shall'';
            (2) by inserting ``amphetamine or'' before 
        ``methamphetamine'' each place it appears;
            (3) in paragraph (2)--
                    (A) by inserting ``, the State or local government 
                concerned, or both the United States and the State or 
                local government concerned'' after ``United States'' 
                the first place it appears; and
                    (B) by inserting ``or the State or local government 
                concerned, as the case may be,'' after ``United 
                States'' the second place it appears; and
            (4) in paragraph (3), by striking ``section 3663 of title 
        18, United States Code'' and inserting ``section 3663A of title 
        18, United States Code''.
    (b) Deposit of Amounts in Department of Justice Assets Forfeiture 
Fund.--Section 524(c)(4) of title 28, United States Code, is amended--
            (1) by striking ``and'' at the end of subparagraph (B);
            (2) by striking the period at the end of subparagraph (C) 
        and inserting ``; and''; and
            (3) by adding at the end the following:
            ``(D) all amounts collected--
                    ``(i) by the United States pursuant to a 
                reimbursement order under paragraph (2) of section 
                413(q) of the Controlled Substances Act (21 U.S.C. 
                853(q)); and
                    ``(ii) pursuant to a restitution order under 
                paragraph (1) or (3) of section 413(q) of the 
                Controlled Substances Act for injuries to the United 
                States.''.
    (c) Clarification of Certain Orders of Restitution.--Section 
3663(c)(2)(B) of title 18, United States Code, is amended by inserting 
``which may be'' after ``the fine''.
    (d) Expansion of Applicability of Mandatory Restitution.--Section 
3663A(c)(1)(A)(ii) of title 18, United States Code, is amended by 
inserting ``or under section 416(a) of the Controlled Substances Act 
(21 U.S.C. 856(a)),'' after ``under this title,''.
    (e) Treatment of Illicit Substance Manufacturing Operations as 
Crimes Against Property.--Section 416 of the Controlled Substances Act 
(21 U.S.C. 856) is amended by adding at the end the following new 
subsection:
    ``(c) A violation of subsection (a) shall be considered an offense 
against property for purposes of section 3663A(c)(1)(A)(ii) of title 
18, United States Code.''.

SEC. 1514. METHAMPHETAMINE PARAPHERNALIA.

    Section 422(d) of the Controlled Substances Act (21 U.S.C. 863(d)) 
is amended in the matter preceding paragraph (1) by inserting 
``methamphetamine,'' after ``PCP,''.

                  CHAPTER 2--ENHANCED LAW ENFORCEMENT

SEC. 1521. ENVIRONMENTAL HAZARDS ASSOCIATED WITH ILLEGAL MANUFACTURE OF 
              AMPHETAMINE AND METHAMPHETAMINE.

    (a) Use of Amounts or Department of Justice Assets Forfeiture 
Fund.--Section 524(c)(1)(E) of title 28, United States Code, is 
amended--
            (1) by inserting ``(i) for'' before ``disbursements'';
            (2) by inserting ``and'' after the semicolon; and
            (3) by adding at the end the following:
            ``(ii) for payment for--
                    ``(I) costs incurred by or on behalf of the 
                Department of Justice in connection with the removal, 
                for purposes of Federal forfeiture and disposition, of 
                any hazardous substance or pollutant or contaminant 
                associated with the illegal manufacture of amphetamine 
                or methamphetamine; and
                    ``(II) costs incurred by or on behalf of a State or 
                local government in connection with such removal in any 
                case in which such State or local government has 
                assisted in a Federal prosecution relating to 
                amphetamine or methamphetamine, to the extent such 
                costs exceed equitable sharing payments made to such 
                State or local government in such case;''.
    (b) Grants Under Drug Control and System Improvement Grant 
Program.--Section 501(b)(3) of the Omnibus Crime Control and Safe 
Streets Act of 1968 is amended by inserting before the semicolon the 
following: ``and to remove any hazardous substance or pollutant or 
contaminant associated with the illegal manufacture of amphetamine or 
methamphetamine''.
    (c) Amounts Supplement and Not Supplant.--
            (1) Assets forfeiture fund.--Any amounts made available 
        from the Department of Justice Assets Forfeiture Fund in a 
        fiscal year by reason of the amendment made by subsection (a) 
        shall supplement, and not supplant, any other amounts made 
        available to the Department of Justice in such fiscal year from 
        other sources for payment of costs described in section 
        524(c)(1)(E)(ii) of title 28, United States Code, as so 
        amended.
            (2) Grant program.--Any amounts made available in a fiscal 
        year under the grant program under section 501(b)(3) of the 
        Omnibus Crime Control and Safe Streets Act of 1968 for the 
        removal of hazardous substances or pollutants or contaminants 
        associated with the illegal manufacture of amphetamine or 
        methamphetamine by reason of the amendment made by subsection 
        (b) shall supplement, and not supplant, any other amounts made 
        available in such fiscal year from other sources for such 
        removal.

SEC. 1522. REDUCTION IN RETAIL SALES TRANSACTION THRESHOLD FOR NON-SAFE 
              HARBOR PRODUCTS CONTAINING PSEUDOEPHEDRINE OR 
              PHENLYPROPANOLAMINE.

    (a) Reduction in Transaction Threshold.--Section 102(39)(A)(iv)(II) 
of the Controlled Substances Act (21 U.S.C. 802(39)(A)(iv)(II) is 
amended--
            (1) by striking ``24 grams'' both places it appears and 
        inserting ``9 grams''; and
            (2) by inserting before the semicolon at the end the 
        following: ``and sold in package sizes of not more than 3 grams 
        of pseudoephedrine base or 3 grams of phenylpropanolamine 
        base''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect one year after the date of the enactment of this Act.

SEC. 1523. TRAINING FOR DRUG ENFORCEMENT ADMINISTRATION AND STATE AND 
              LOCAL LAW ENFORCEMENT PERSONNEL RELATING TO CLANDESTINE 
              LABORATORIES.

    (a) In General.--
            (1) Requirement.--The Administrator of the Drug Enforcement 
        Administration shall carry out the programs described in 
        subsection (b) with respect to the law enforcement personnel of 
        States and localities determined by the Administrator to have 
        significant levels of methamphetamine-related or amphetamine-
        related crime or projected by the Administrator to have the 
        potential for such levels of crime in the future.
            (2) Duration.--The duration of any program under that 
        subsection may not exceed 3 years.
    (b) Covered Programs.--The programs described in this subsection 
are as follows:
            (1) Advanced mobile clandestine laboratory training 
        teams.--A program of advanced mobile clandestine laboratory 
        training teams, which shall provide information and training to 
        State and local law enforcement personnel in techniques 
        utilized in conducting undercover investigations and conspiracy 
        cases, and other information designed to assist in the 
        investigation of the illegal manufacturing and trafficking of 
        amphetamine and methamphetamine.
            (2) Basic clandestine laboratory certification training.--A 
        program of basic clandestine laboratory certification training, 
        which shall provide information and training--
                    (A) to Drug Enforcement Administration personnel 
                and State and local law enforcement personnel for 
                purposes of enabling such personnel to meet any 
                certification requirements under law with respect to 
                the handling of wastes created by illegal amphetamine 
                and methamphetamine laboratories; and
                    (B) to State and local law enforcement personnel 
                for purposes of enabling such personnel to provide the 
                information and training covered by subparagraph (A) to 
                other State and local law enforcement personnel.
            (3) Clandestine laboratory recertification and awareness 
        training.--A program of clandestine laboratory recertification 
        and awareness training, which shall provide information and 
        training to State and local law enforcement personnel for 
        purposes of enabling such personnel to provide recertification 
        and awareness training relating to clandestine laboratories to 
        additional State and local law enforcement personnel.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated for each of fiscal years 2000, 2001, and 2002 amounts as 
follows:
            (1) $1,500,000 to carry out the program described in 
        subsection (b)(1).
            (2) $3,000,000 to carry out the program described in 
        subsection (b)(2).
            (3) $1,000,000 to carry out the program described in 
        subsection (b)(3).

SEC. 1524. COMBATING METHAMPHETAMINE AND AMPHETAMINE IN HIGH INTENSITY 
              DRUG TRAFFICKING AREAS.

    (a) In General.--
            (1) In general.--The Director of National Drug Control 
        Policy shall use amounts available under this section to combat 
        the trafficking of methamphetamine and amphetamine in areas 
        designated by the Director as high intensity drug trafficking 
        areas.
            (2) Activities.--In meeting the requirement in paragraph 
        (1), the Director shall provide funds for--
                    (A) employing additional Federal law enforcement 
                personnel, or facilitating the employment of additional 
                State and local law enforcement personnel, including 
                agents, investigators, prosecutors, laboratory 
                technicians, chemists, investigative assistants, and 
                drug-prevention specialists; and
                    (B) such other activities as the Director considers 
                appropriate.
    (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section--
            (1) $15,000,000 for fiscal year 2000; and
            (2) such sums as may be necessary for each of fiscal years 
        2001 through 2004.
    (c) Apportionment of Funds.--
            (1) Factors in apportionment.--The Director shall apportion 
        amounts appropriated for a fiscal year pursuant to the 
        authorization of appropriations in subsection (b) for 
        activities under subsection (a) among and within areas 
        designated by the Director as high intensity drug trafficking 
        areas based on the following factors:
                    (A) The number of methamphetamine manufacturing 
                facilities and amphetamine manufacturing facilities 
                discovered by Federal, State, or local law enforcement 
                officials in the previous fiscal year.
                    (B) The number of methamphetamine prosecutions and 
                amphetamine prosecutions in Federal, State, or local 
                courts in the previous fiscal year.
                    (C) The number of methamphetamine arrests and 
                amphetamine arrests by Federal, State, or local law 
                enforcement officials in the previous fiscal year.
                    (D) The amounts of methamphetamine, amphetamine, or 
                listed chemicals (as that term is defined in section 
                102(33) of the Controlled Substances Act (21 U.S.C. 
                802(33)) seized by Federal, State, or local law 
                enforcement officials in the previous fiscal year.
                    (E) Intelligence and predictive data from the Drug 
                Enforcement Administration and the Department of Health 
                and Human Services showing patterns and trends in 
                abuse, trafficking, and transportation in 
                methamphetamine, amphetamine, and listed chemicals (as 
                that term is so defined).
            (2) Certification.--Before the Director apportions any 
        funds under this subsection to a high intensity drug 
        trafficking area, the Director shall certify that the law 
        enforcement entities responsible for clandestine 
        methamphetamine and amphetamine laboratory seizures in that 
        area are providing laboratory seizure data to the national 
        clandestine laboratory database at the El Paso Intelligence 
        Center.
    (d) Limitation on Administrative Costs.--Not more than 5 percent of 
the amount appropriated in a fiscal year pursuant to the authorization 
of appropriations for that fiscal year in subsection (b) may be 
available in that fiscal year for administrative costs associated with 
activities under subsection (a).

SEC. 1525. COMBATING AMPHETAMINE AND METHAMPHETAMINE MANUFACTURING AND 
              TRAFFICKING.

    (a) Activities.--In order to combat the illegal manufacturing and 
trafficking in amphetamine and methamphetamine, the Administrator of 
the Drug Enforcement Administration may--
            (1) assist State and local law enforcement in small and 
        mid-sized communities in all phases of investigations related 
        to such manufacturing and trafficking, including assistance 
        with foreign-language interpretation;
            (2) staff additional regional enforcement and mobile 
        enforcement teams related to such manufacturing and 
        trafficking;
            (3) establish additional resident offices and posts of duty 
        to assist State and local law enforcement in rural areas in 
        combating such manufacturing and trafficking;
            (4) provide the Special Operations Division of the 
        Administration with additional agents and staff to collect, 
        evaluate, interpret, and disseminate critical intelligence 
        targeting the command and control operations of major 
        amphetamine and methamphetamine manufacturing and trafficking 
        organizations;
            (5) enhance the investigative and related functions of the 
        Chemical Control Program of the Administration to implement 
        more fully the provisions of the Comprehensive Methamphetamine 
        Control Act of 1996 (Public Law 104-237);
            (6) design an effective means of requiring an accurate 
        accounting of the import and export of list I chemicals, and 
        coordinate investigations relating to the diversion of such 
        chemicals;
            (7) develop a computer infrastructure sufficient to 
        receive, process, analyze, and redistribute time-sensitive 
        enforcement information from suspicious order reporting to 
        field offices of the Administration and other law enforcement 
        and regulatory agencies, including the continuing development 
        of the Suspicious Order Reporting and Tracking System (SORTS) 
        and the Chemical Transaction Database (CTRANS) of the 
        Administration;
            (8) establish an education, training, and communication 
        process in order to alert the industry to current trends and 
        emerging patterns in the illegal manufacturing of amphetamine 
        and methamphetamine; and
            (9) carry out such other activities as the Administrator 
        considers appropriate.
    (b) Additional Positions and Personnel.--
            (1) In general.--In carrying out activities under 
        subsection (a), the Administrator may establish in the 
        Administration not more than 50 full-time positions, including 
        not more than 31 special-agent positions, and may appoint 
        personnel to such positions.
            (2) Particular positions.--In carrying out activities under 
        paragraphs (5) through (8) of subsection (a), the Administrator 
        may establish in the Administration not more than 15 full-time 
        positions, including not more than 10 diversion investigator 
        positions, and may appoint personnel to such positions. Any 
        positions established under this paragraph are in addition to 
        any positions established under paragraph (1).
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated for the Drug Enforcement Administration for each fiscal 
year after fiscal year 1999, $9,500,000 for purposes of carrying out 
the activities authorized by subsection (a) and employing personnel in 
positions established under subsection (b), of which $3,000,000 shall 
be available for activities under paragraphs (5) through (8) of 
subsection (a) and employing personnel in positions established under 
subsection (b)(2).

               CHAPTER 3--ABUSE PREVENTION AND TREATMENT

SEC. 1531. EXPANSION OF METHAMPHETAMINE RESEARCH.

    Section 464N of the Public Health Service Act (42 U.S.C. 285o-2) is 
amended by adding at the end the following:
    ``(c) Methamphetamine Research.--
            ``(1) Grants or cooperative agreements.--The Director of 
        the Institute may make grants or enter into cooperative 
        agreements to expand the current and on-going interdisciplinary 
        research and clinical trials with treatment centers of the 
        National Drug Abuse Treatment Clinical Trials Network relating 
        to methamphetamine abuse and addiction and other biomedical, 
        behavioral, and social issues related to methamphetamine abuse 
        and addiction.
            ``(2) Use of funds.--Amounts made available under a grant 
        or cooperative agreement under paragraph (1) for 
        methamphetamine abuse and addiction may be used for research 
        and clinical trials relating to--
                    ``(A) the effects of methamphetamine abuse on the 
                human body, including the brain;
                    ``(B) the addictive nature of methamphetamine and 
                how such effects differ with respect to different 
                individuals;
                    ``(C) the connection between methamphetamine abuse 
                and mental health;
                    ``(D) the identification and evaluation of the most 
                effective methods of prevention of methamphetamine 
                abuse and addiction;
                    ``(E) the identification and development of the 
                most effective methods of treatment of methamphetamine 
                addiction, including pharmacological treatments;
                    ``(F) risk factors for methamphetamine abuse;
                    ``(G) effects of methamphetamine abuse and 
                addiction on pregnant women and their fetuses; and
                    ``(H) cultural, social, behavioral, neurological 
                and psychological reasons that individuals abuse 
                methamphetamine, or refrain from abusing 
                methamphetamine.
            ``(3) Research results.--The Director shall promptly 
        disseminate research results under this subsection to Federal, 
        State and local entities involved in combating methamphetamine 
        abuse and addiction.
            ``(4) Authorization of appropriations.--
                    ``(A) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out paragraph 
                (1), such sums as may be necessary for each fiscal 
                year.
                    ``(B) Supplement not supplant.--Amounts 
                appropriated pursuant to the authorization of 
                appropriations in subparagraph (A) for a fiscal year 
                shall supplement and not supplant any other amounts 
                appropriated in such fiscal year for research on 
                methamphetamine abuse and addiction.''.

SEC. 1532. METHAMPHETAMINE AND AMPHETAMINE TREATMENT INITIATIVE BY 
              CENTER FOR SUBSTANCE ABUSE TREATMENT.

    Subpart 1 of part B of title V of the Public Health Service Act (42 
U.S.C. 290bb et seq.) is amended by adding at the end the following new 
section:

         ``methamphetamine and amphetamine treatment initiative

    ``Sec. 514. (a) Grants.--
            ``(1) Authority to make grants.--The Director of the Center 
        for Substance Abuse Treatment may make grants to States and 
        Indian tribes recognized by the United States that have a high 
        rate, or have had a rapid increase, in methamphetamine or 
        amphetamine abuse or addiction in order to permit such States 
        and Indian tribes to expand activities in connection with the 
        treatment of methamphetamine or amphetamine abuser or addiction 
        in the specific geographical areas of such States or Indian 
        tribes, as the case may be, where there is such a rate or has 
        been such an increase.
            ``(2) Recipients.--Any grants under paragraph (1) shall be 
        directed to the substance abuse directors of the States, and of 
        the appropriate tribal government authorities of the Indian 
        tribes, selected by the Director to receive such grants.
            ``(3) Nature of activities.--Any activities under a grant 
        under paragraph (1) shall be based on reliable scientific 
        evidence of their efficacy in the treatment of methamphetamine 
        or amphetamine abuse or addiction.
    ``(b) Geographic Distribution.--The Director shall ensure that 
grants under subsection (a) are distributed equitably among the various 
regions of the country and among rural, urban, and suburban areas that 
are affected by methamphetamine or amphetamine abuse or addiction.
    ``(c) Additional Activities.--The Director shall--
            ``(1) evaluate the activities supported by grants under 
        subsection (a);
            ``(2) disseminate widely such significant information 
        derived from the evaluation as the Director considers 
        appropriate to assist States, Indian tribes, and private 
        providers of treatment services for methamphetamine or 
        amphetamine abuser or addiction in the treatment of 
        methamphetamine or amphetamine abuse or addiction; and
            ``(3) provide States, Indian tribes, and such providers 
        with technical assistance in connection with the provision of 
        such treatment.
    ``(d) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section $10,000,000 for fiscal year 2000 and 
        such sums as may be necessary for each of fiscal years 2001 and 
        2002.
            ``(2) Use of certain funds.--Of the funds appropriated to 
        carry out this section in any fiscal year, the lesser of 5 
        percent of such funds or $1,000,000 shall be available to the 
        Director for purposes of carrying out subsection (c).''.

SEC. 1533. EXPANSION OF METHAMPHETAMINE ABUSE PREVENTION EFFORTS.

    (a) Expansion of Efforts.--Section 515 of the Public Health Service 
Act (42 U.S.C. 290bb-21) is amended by adding at the end the following:
    ``(e)(1) The Administrator may make grants to and enter into 
contracts and cooperative agreements with public and nonprofit private 
entities to enable such entities--
            ``(A) to carry out school-based programs concerning the 
        dangers of abuse of and addiction to methamphetamine and other 
        illicit drugs, using methods that are effective and science-
        based, including initiatives that give students the 
        responsibility to create their own anti-drug abuse education 
        programs for their schools; and
            ``(B) to carry out community-based abuse and addiction 
        prevention programs relating to methamphetamine and other 
        illicit drugs that are effective and science-based.
    ``(2) Amounts made available under a grant, contract or cooperative 
agreement under paragraph (1) shall be used for planning, establishing, 
or administering prevention programs relating to methamphetamine and 
other illicit drugs in accordance with paragraph (3).
    ``(3)(A) Amounts provided under this subsection may be used--
            ``(i) to carry out school-based programs that are focused 
        on those districts with high or increasing rates of 
        methamphetamine abuse and addiction and targeted at populations 
        which are most at risk to start abuse of methamphetamine and 
        other illicit drugs;
            ``(ii) to carry out community-based prevention programs 
        that are focused on those populations within the community that 
        are most at-risk for abuse of and addiction to methamphetamine 
        and other illicit drugs;
            ``(iii) to assist local government entities to conduct 
        appropriate prevention activities relating to methamphetamine 
        and other illicit drugs;
            ``(iv) to train and educate State and local law enforcement 
        officials, prevention and education officials, members of 
        community anti-drug coalitions and parents on the signs of 
        abuse of and addiction to methamphetamine and other illicit 
        drugs, and the options for treatment and prevention;
            ``(v) for planning, administration, and educational 
        activities related to the prevention of abuse of and addiction 
        to methamphetamine and other illicit drugs;
            ``(vi) for the monitoring and evaluation of prevention 
        activities relating to methamphetamine and other illicit drugs, 
        and reporting and disseminating resulting information to the 
        public; and
            ``(vii) for targeted pilot programs with evaluation 
        components to encourage innovation and experimentation with new 
        methodologies.
    ``(B) The Administrator shall give priority in making grants under 
this subsection to rural and urban areas that are experiencing a high 
rate or rapid increases in methamphetamine abuse and addiction.
    ``(4)(A) Not less than $500,000 of the amount available in each 
fiscal year to carry out this subsection shall be made available to the 
Administrator, acting in consultation with other Federal agencies, to 
support and conduct periodic analyses and evaluations of effective 
prevention programs for abuse of and addiction to methamphetamine and 
other illicit drugs and the development of appropriate strategies for 
disseminating information about and implementing these programs.
    ``(B) The Administrator shall submit to the committees of Congress 
referred to in subparagraph (C) an annual report with the results of 
the analyses and evaluation under subparagraph (A).
    ``(C) The committees of Congress referred to in this subparagraph 
are the following:
            ``(i) The Committees on Health, Education, Labor, and 
        Pensions, the Judiciary, and Appropriations of the Senate.
            ``(ii) The Committees on Commerce, the Judiciary, and 
        Appropriations of the House of Representatives.''.
    (b) Authorization of Appropriations for Expansion of Abuse 
Prevention Efforts and Practitioner Registration Requirements.--There 
is authorized to be appropriated to carry out section 515(e) of the 
Public Health Service Act (as added by subsection (a)) and section 
303(g)(2) of the Controlled Substances Act (as added by section 18(a) 
of this Act), $15,000,000 for fiscal year 2000, and such sums as may be 
necessary for each succeeding fiscal year.

SEC. 1534. STUDY OF METHAMPHETAMINE TREATMENT.

    (a) Study.--
            (1) Requirement.--The Secretary of Health and Human 
        Services shall, in consultation with the Institute of Medicine 
        of the National Academy of Sciences, conduct a study on the 
        development of medications for the treatment of addiction to 
        amphetamine and methamphetamine.
            (2) Report.--Not later than nine months after the date of 
        the enactment of this Act, the Secretary shall submit to the 
        Committees on the Judiciary of the Senate and House of 
        Representatives a report on the results of the study conducted 
        under paragraph (1).
    (b) Authorization of Appropriations.--There are hereby authorized 
to be appropriated for the Department of Health and Human Services for 
fiscal year 2000 such sums as may be necessary to meet the requirements 
of subsection (a).

                           CHAPTER 4--REPORTS

SEC. 1541. REPORTS ON CONSUMPTION OF METHAMPHETAMINE AND OTHER ILLICIT 
              DRUGS IN RURAL AREAS, METROPOLITAN AREAS, AND 
              CONSOLIDATED METROPOLITAN AREAS.

    The Secretary of Health and Human Services shall include in each 
National Household Survey on Drug Abuse appropriate prevalence data and 
information on the consumption of methamphetamine and other illicit 
drugs in rural areas, metropolitan areas, and consolidated metropolitan 
areas.

SEC. 1542. REPORT ON DIVERSION OF ORDINARY OVER-THE-COUNTER 
              PSEUDOEPHEDRINE AND PHENYLPROPANOLAMINE PRODUCTS.

    (a) Study.--The Attorney General shall conduct a study of the use 
of ordinary over-the-counter pseudoephedrine and phenylpropanolamine 
products in the clandestine production of illicit drugs. Sources of 
data for the study shall include the following:
            (1) Information from Federal, State, and local clandestine 
        laboratory seizures and related investigations identifying the 
        source, type, or brand of drug products being utilized and how 
        they were obtained for the illicit production of 
        methamphetamine and amphetamine.
            (2) Information submitted voluntarily from the 
        pharmaceutical and retail industries involved in the 
        manufacture, distribution, and sale of drug products containing 
        ephedrine, pseudoephedrine, and phenylpropanolamine, including 
        information on changes in the pattern, volume, or both, of 
        sales of ordinary over-the-counter pseudoephedrine and 
        phenylpropanolamine products.
    (b) Report.--
            (1) Requirement.--Not later than April 1, 2001, the 
        Attorney General shall submit to Congress a report on the study 
        conducted under subsection (a).
            (2) Elements.--The report shall include--
                    (A) the findings of the Attorney General as a 
                result of the study; and
                    (B) such recommendations on the need to establish 
                additional measures to prevent diversion of ordinary 
                over-the-counter pseudoephedrine and 
                phenylpropanolamine (such as a threshold on ordinary 
                over-the-counter pseudoephedrine and 
                phenylpropanolamine products) as the Attorney General 
                considers appropriate.
            (3) Matters considered.--In preparing the report, the 
        Attorney General shall consider the comments and 
        recommendations of State and local law enforcement and 
        regulatory officials and of representatives of the industry 
        described in subsection (a)(2).

              Subtitle B--Controlled Substances Generally

                      CHAPTER 1--CRIMINAL MATTERS

SEC. 1551. ENHANCED PUNISHMENT FOR TRAFFICKING IN LIST I CHEMICALS.

    (a) Amendments to Federal Sentencing Guidelines.--Pursuant to its 
authority under section 994(p) of title 28, United States, the United 
States Sentencing Commission shall amend the Federal sentencing 
guidelines in accordance with this section with respect to any 
violation of paragraph (1) or (2) of section 401(d) of the Controlled 
Substances Act (21 U.S.C. 841(d)) involving a list I chemical and any 
violation of paragraph (1) or (3) of section 1010(d) of the Controlled 
Substance Import and Export Act (21 U.S.C. 960(d)) involving a list I 
chemical.
    (b) Ephedrine, Phenylpropanolamine, and Pseudoephedrine.--
            (1) In general.--In carrying this section, the United 
        States Sentencing Commission shall, with respect to each 
        offense described in subsection (a) involving ephedrine, 
        phenylpropanolamine, or pseudoephedrine (including their salts, 
        optical isomers, and salts of optical isomers), review and 
        amend its guidelines to provide for increased penalties such 
        that those penalties corresponded to the quantity of controlled 
        substance that could reasonably have been manufactured using 
        the quantity of ephedrine, phenylpropanolamine, or 
        pseudoephedrine possessed or distributed.
            (2) Conversion ratios.--For the purposes of the amendments 
        made by this subsection, the quantity of controlled substance 
        that could reasonably have been manufactured shall be 
        determined by using a table of manufacturing conversion ratios 
        for ephedrine, phenylpropanolamine, and pseudoephedrine, which 
        table shall be established by the Sentencing Commission based 
        on scientific, law enforcement, and other data the Sentencing 
        Commission considers appropriate.
    (c) Other List I Chemicals.--In carrying this section, the United 
States Sentencing Commission shall, with respect to each offense 
described in subsection (a) involving any list I chemical other than 
ephedrine, phenylpropanolamine, or pseudoephedrine, review and amend 
its guidelines to provide for increased penalties such that those 
penalties reflect the dangerous nature of such offenses, the need for 
aggressive law enforcement action to fight such offenses, and the 
extreme dangers associated with unlawful activity involving 
methamphetamine and amphetamine, including--
            (1) the rapidly growing incidence of controlled substance 
        manufacturing;
            (2) the extreme danger inherent in manufacturing controlled 
        substances;
            (3) the threat to public safety posed by manufacturing 
        controlled substances; and
            (4) the recent increase in the importation, possession, and 
        distribution of list I chemicals for the purpose of 
        manufacturing controlled substances.
    (d) Emergency Authority to Sentencing Commission.--The United 
States Sentencing Commission shall promulgate amendments pursuant to 
this section as soon as practicable after the date of the enactment of 
this Act in accordance with the procedure set forth in section 21(a) of 
the Sentencing Act of 1987 (Public Law 100-182), as though the 
authority under that Act had not expired.

SEC. 1552. MAIL ORDER REQUIREMENTS.

    Section 310(b)(3) of the Controlled Substances Act (21 U.S.C. 
830(b)(3)) is amended--
            (1) by redesignating subparagraphs (A) and (B) as 
        subparagraphs (B) and (C), respectively;
            (2) by inserting before subparagraph (B), as so 
        redesignated, the following new subparagraph (A):
                    ``(A) As used in this paragraph:
                            ``(i) The term `drug product' means an 
                        active ingredient in dosage form that has been 
                        approved or otherwise may be lawfully marketed 
                        under the Food, Drug, and Cosmetic Act for 
                        distribution in the United States.
                            ``(ii) The term `valid prescription' means 
                        a prescription which is issued for a legitimate 
                        medical purpose by an individual practitioner 
                        licensed by law to administer and prescribe the 
                        drugs concerned and acting in the usual course 
                        of the practitioner's professional practice.'';
            (3) in subparagraph (B), as so redesignated, by inserting 
        ``or who engages in an export transaction'' after 
        ``nonregulated person''; and
            (4) adding at the end the following:
                    ``(D) Except as provided in subparagraph (E), the 
                following distributions to a nonregulated person, and 
                the following export transactions, shall not be subject 
                to the reporting requirement in subparagraph (B):
                            ``(i) Distributions of sample packages of 
                        drug products when such packages contain not 
                        more than 2 solid dosage units or the 
                        equivalent of 2 dosage units in liquid form, 
                        not to exceed 10 milliliters of liquid per 
                        package, and not more than one package is 
                        distributed to an individual or residential 
                        address in any 30-day period.
                            ``(ii) Distributions of drug products by 
                        retail distributors that may not include face-
                        to-face transactions to the extent that such 
                        distributions are consistent with the 
                        activities authorized for a retail distributor 
                        as specified in section 102(46).
                            ``(iii) Distributions of drug products to a 
                        resident of a long term care facility (as that 
                        term is defined in regulations prescribed by 
                        the Attorney General) or distributions of drug 
                        products to a long term care facility for 
                        dispensing to or for use by a resident of that 
                        facility.
                            ``(iv) Distributions of drug products 
                        pursuant to a valid prescription.
                            ``(v) Exports which have been reported to 
                        the Attorney General pursuant to section 1004 
                        or 1018 or which are subject to a waiver 
                        granted under section 1018(e)(2).
                            ``(vi) Any quantity, method, or type of 
                        distribution or any quantity, method, or type 
                        of distribution of a specific listed chemical 
                        (including specific formulations or drug 
                        products) or of a group of listed chemicals 
                        (including specific formulations or drug 
                        products) which the Attorney General has 
                        excluded by regulation from such reporting 
                        requirement on the basis that such reporting is 
                        not necessary for the enforcement of this title 
                        or title III.
                    ``(E) The Attorney General may revoke any or all of 
                the exemptions listed in subparagraph (D) for an 
                individual regulated person if he finds that drug 
                products distributed by the regulated person are being 
                used in violation of this title or title III. The 
                regulated person shall be notified of the revocation, 
                which will be effective upon receipt by the person of 
                such notice, as provided in section 1018(c)(1), and 
                shall have the right to an expedited hearing as 
                provided in section 1018(c)(2).''.

SEC. 1553. INCREASED PENALTIES FOR DISTRIBUTING DRUGS TO MINORS.

    Section 418 of the Controlled Substances Act (21 U.S.C. 859) is 
amended--
            (1) in subsection (a), by striking ``one year'' and 
        inserting ``3 years''; and
            (2) in subsection (b), by striking ``one year'' and 
        inserting ``5 years''.

SEC. 1554. INCREASED PENALTY FOR DRUG TRAFFICKING IN OR NEAR A SCHOOL 
              OR OTHER PROTECTED LOCATION.

    Section 419 of the Controlled Substances Act (21 U.S.C. 860) is 
amended--
            (1) in subsection (a), by striking ``one year'' and 
        inserting ``3 years''; and
            (2) in subsection (b), by striking ``three years'' each 
        place that term appears and inserting ``5 years''.

SEC. 1555. ADVERTISEMENTS FOR DRUG PARAPHERNALIA AND SCHEDULE I 
              CONTROLLED SUBSTANCES.

    (a) Drug Paraphernalia.--Subsection (a)(1) of section 422 of the 
Controlled Substances Act (21 U.S.C. 863) is amended by inserting ``, 
directly or indirectly advertise for sale,'' after ``sell''.
    (b) Directly or Indirectly Advertise for Sale Defined.--Such 
section 422 is further amended by adding at the end the following new 
subsection:
    ``(g) In this section, the term `directly or indirectly advertise 
for sale' means the use of any communication facility (as that term is 
defined in section 403(b)) to post, publicize, transmit, publish, link 
to, broadcast, or otherwise advertise any matter (including a telephone 
number or electronic or mail address) with the intent to facilitate or 
promote a transaction in.''.
    (c) Schedule I Controlled Substances.--Section 403(c) of such Act 
(21 U.S.C. 843(c)) is amended--
            (1) by inserting ``(1)'' after ``(c)''; and
            (2) in paragraph (1), as so designated--
                    (A) in the first sentence, by inserting before the 
                period the following: ``, or to directly or indirectly 
                advertise for sale (as that term is defined in section 
                422(g)) any Schedule I controlled substance''; and
                    (B) in the second sentence, by striking ``term 
                `advertisement''' and inserting ``term `written 
                advertisement'''.

SEC. 1556. THEFT AND TRANSPORTATION OF ANHYDROUS AMMONIA FOR PURPOSES 
              OF ILLICIT PRODUCTION OF CONTROLLED SUBSTANCES.

    (a) In General.--Part D of the Controlled Substances Act (21 U.S.C. 
841 et seq.) is amended by adding at the end the following:

                          ``anhydrous ammonia

    ``Sec. 423. (a) It is unlawful for any person--
            ``(1) to steal anhydrous ammonia, or
            ``(2) to transport stolen anhydrous ammonia across State 
        lines,
knowing, intending, or having reasonable cause to believe that such 
anhydrous ammonia will be used to manufacture a controlled substance in 
violation of this part.
    ``(b) Any person who violates subsection (a) shall be imprisoned or 
fined, or both, in accordance with section 403(d) as if such violation 
were a violation of a provision of section 403.''.
    (b) Clerical Amendment.--The table of contents for that Act is 
amended by inserting after the item relating to section 421 the 
following new items:

``Sec. 422. Drug paraphernalia.
``Sec. 423. Anhydrous ammonia.''.
    (c) Assistance for Certain Research.--
            (1) Agreement.--The Administrator of the Drug Enforcement 
        Administration shall seek to enter into an agreement with Iowa 
        State University in order to permit the University to continue 
        and expand its current research into the development of inert 
        agents that, when added to anhydrous ammonia, eliminate the 
        usefulness of anhydrous ammonia as an ingredient in the 
        production of methamphetamine.
            (2) Reimbursable provision of funds.--The agreement under 
        paragraph (1) may provide for the provision to Iowa State 
        University, on a reimbursable basis, of $500,000 for purposes 
        the activities specified in that paragraph.
            (3) Authorization of appropriations.--There is hereby 
        authorized to be appropriated for the Drug Enforcement 
        Administration for fiscal year 2000, $500,000 for purposes of 
        carrying out the agreement under this subsection.

SEC. 1557. CRIMINAL PROHIBITION ON DISTRIBUTION OF CERTAIN INFORMATION 
              RELATING TO THE MANUFACTURE OF CONTROLLED SUBSTANCES.

    (a) In General.--Part I of title 18, United States Code, is amended 
by inserting after chapter 21 the following new chapter:

                  ``CHAPTER 22--CONTROLLED SUBSTANCES

``Sec.
``421. Distribution of information relating to manufacture of 
                            controlled substances.
``Sec. 421. Distribution of information relating to manufacture of 
              controlled substances
    ``(a) Prohibition on Distribution of Information Relating to 
Manufacture of Controlled Substances.--
            ``(1) Controlled substance defined.--In this subsection, 
        the term `controlled substance' has the meaning given that term 
        in section 102(6) of the Controlled Substances Act (21 U.S.C. 
        802(6)).
            ``(2) Prohibition.--It shall be unlawful for any person--
                    ``(A) to teach or demonstrate the manufacture of a 
                controlled substance, or to distribute by any means 
                information pertaining to, in whole or in part, the 
                manufacture of a controlled substance, with the intent 
                that the teaching, demonstration, or information be 
                used for, or in furtherance of, an activity that 
                constitutes a Federal crime; or
                    ``(B) to teach or demonstrate to any person the 
                manufacture of a controlled substance, or to distribute 
                to any person, by any means, information pertaining to, 
                in whole or in part, the manufacture of a controlled 
                substance, knowing that such person intends to use the 
                teaching, demonstration, or information for, or in 
                furtherance of, an activity that constitutes a Federal 
                crime.
    ``(b) Penalty.--Any person who violates subsection (a) shall be 
fined under this title, imprisoned not more than 10 years, or both.''.
    (b) Clerical Amendment.--The table of chapters at the beginning of 
part I of title 18, United States Code, is amended by inserting after 
the item relating to chapter 21 the following new item:

``22. Controlled Substances.................................     421''.

                        CHAPTER 2--OTHER MATTERS

SEC. 1561. WAIVER AUTHORITY FOR PHYSICIANS WHO DISPENSE OR PRESCRIBE 
              CERTAIN NARCOTIC DRUGS FOR MAINTENANCE TREATMENT OR 
              DETOXIFICATION TREATMENT.

    (a) Requirements.--Section 303(g) of the Controlled Substances Act 
(21 U.S.C. 823(g)) is amended--
            (1) in paragraph (2), by striking ``(A) security'' and 
        inserting ``(i) security'', and by striking ``(B) the 
        maintenance'' and inserting ``(ii) the maintenance'';
            (2) by redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (C), respectively;
            (3) by inserting ``(1)'' after ``(g)'';
            (4) by striking ``Practitioners who dispense'' and 
        inserting ``Except as provided in paragraph (2), practitioners 
        who dispense and prescribe''; and
            (5) by adding at the end the following:
    ``(2)(A) Subject to subparagraphs (D), the requirements of 
paragraph (1) are waived in the case of the dispensing or prescribing, 
by a physician, of narcotic drugs in schedule III, IV, or V, or 
combinations of such drugs, if the physician meets the conditions 
specified in subparagraph (B) and the narcotic drugs or combinations of 
such drugs meet the conditions specified in subparagraph (C).
    ``(B)(i) For purposes of subparagraph (A), the conditions specified 
in this subparagraph with respect to a physician are that, before 
dispensing or prescribing narcotic drugs in schedule III, IV, or V, or 
combinations of such drugs, to patients for maintenance or 
detoxification treatment, the physician submit to the Secretary and the 
Attorney General a notification of the intent of the physician to begin 
dispensing or prescribing the drugs or combinations for such purpose, 
and that the notification to the Secretary also contain the following 
certifications by the physician:
            ``(I) The physician--
                    ``(aa) is a physician licensed under State law; and
                    ``(bb) has training or experience and the ability 
                to treat and manage opiate-dependent patients.
            ``(II) With respect to patients to whom the physician will 
        provide such drugs or combinations of drugs, the physician has 
        the capacity to refer the patients for appropriate counseling 
        and other appropriate ancillary services.
            ``(III) In any case in which the physician is not in a 
        group practice, the total number of such patients of the 
        physician at any one time will not exceed the applicable 
        number. For purposes of this subclause, the applicable number 
        is 20, except that the Secretary may by regulation change such 
        total number.
            ``(IV) In any case in which the physician is in a group 
        practice, the total number of such patients of the group 
        practice at any one time will not exceed the applicable number. 
        For purposes of this subclause, the applicable number is 20, 
        except that the Secretary may by regulation change such total 
        number, and the Secretary for such purposes may by regulation 
        establish different categories on the basis of the number of 
        physicians in a group practice and establish for the various 
        categories different numerical limitations on the number of 
        such patients that the group practice may have.
    ``(ii)(I) The Secretary may, in consultation with the Administrator 
of the Drug Enforcement Administration, the Administrator of the 
Substance Abuse and Mental Health Services Administration, the Director 
of the Center for Substance Abuse Treatment, the Director of the 
National Institute on Drug Abuse, and the Commissioner of Food and 
Drugs, issue regulations through notice and comment rulemaking or 
practice guidelines to implement this paragraph. The regulations or 
practice guidelines shall address the following:
            ``(aa) Approval of additional credentialing bodies and the 
        responsibilities of credentialing bodies.
            ``(bb) Additional exemptions from the requirements of this 
        paragraph and any regulations under this paragraph.
    ``(II) Nothing in the regulations or practice guidelines under this 
clause may authorize any Federal official or employee to exercise 
supervision or control over the practice of medicine or the manner in 
which medical services are provided.
    ``(III)(aa) The Secretary shall issue a Treatment Improvement 
Protocol containing best practice guidelines for the treatment and 
maintenance of opiate-dependent patients. The Secretary shall develop 
the protocol in consultation with the Director of the National 
Institute on Drug Abuse, the Director of the Center for Substance Abuse 
Treatment, the Administrator of the Drug Enforcement Administration, 
the Commissioner of Food and Drugs, the Administrator of the Substance 
Abuse and Mental Health Services Administration, and other substance 
abuse disorder professionals. The protocol shall be guided by science.
    ``(bb) The protocol shall be issued not later than 120 days after 
the date of the enactment of the Methamphetamine Anti-Proliferation Act 
of 2000.
    ``(IV) For purposes of the regulations or practice guidelines under 
subclause (I), a physician shall have training or experience under 
clause (i)(I)(bb) if the physician meets one or more of the following 
conditions:
            ``(aa) The physician is certified in addiction treatment by 
        the American Society of Addiction Medicine, the American Board 
        of Medical Specialties, the American Osteopathic Academy of 
        Addiction Medicine, or any other certified body accredited by 
        the Secretary.
            ``(bb) The physician has been a clinical investigator in a 
        clinical trial conducted for purposes of securing approval 
        under section 505 of the Federal Food, Drug, and Cosmetic Act 
        (21 U.S.C. 355) or section 351 of the Public Health Service Act 
        (42 U.S.C. 262) of a narcotic drug in schedule III, IV, or V 
        for the treatment of addiction, if such approval was granted.
            ``(cc) The physician has completed training (through 
        classroom situations, seminars, professional society meetings, 
        electronic communications, or otherwise) provided by the 
        American Society of Addiction Medicine, the American Academy of 
        Addiction Psychiatry, the American Osteopathic Academy of 
        Addiction Medicine, the American Medical Association, the 
        American Osteopathic Association, the American Psychiatric 
        Association, or any other organization that the Secretary 
        determines appropriate for purposes of this item. The curricula 
        may include training in patient need for counseling regarding 
        HIV, Hepatitis C, and other infectious diseases, substance 
        abuse counseling, random drug testing, medical evaluation, 
        annual assessment, prenatal care, diagnosis of addiction, 
        rehabilitation services, confidentiality, and other appropriate 
        topics.
            ``(dd) The physician has training or experience in the 
        treatment and management of opiate-dependent, which training or 
        experience shall meet such criteria as the Secretary may 
        prescribe. Any such criteria shall be effective for a period of 
        three years after the effective date of such criteria, but the 
        Secretary may extend the effective period of such criteria by 
        additional periods of three years for each extension if the 
        Secretary determines that such extension is appropriate for 
        purposes of this item. Any such extension shall go into effect 
        only if the Secretary publishes a notice of such extension in 
        the Federal Register during the 30-day period ending on the 
        date of the end of the three-year effective period of such 
        criteria to which such extension will apply.
            ``(ee) The physician is certified in addiction treatment by 
        a State medical licensing board, or an entity accredited by 
        such board, unless the Secretary determines (after an 
        opportunity for a hearing) that the training provided by such 
        board or entity was inadequate for the treatment and management 
        of opiate-dependent patients.
    ``(C) For purposes of subparagraph (A), the conditions specified in 
this subparagraph with respect to narcotic drugs in schedule III, IV, 
or V, or combinations of such drugs, are as follows:
            ``(i) The drugs or combinations of drugs have, under the 
        Federal Food, Drug and Cosmetic Act or section 351 of the 
        Public Health Service Act, been approved for use in maintenance 
        or detoxification treatment.
            ``(ii) The drugs or combinations of drugs have not been the 
        subject of an adverse determination. For purposes of this 
        clause, an adverse determination is a determination published 
        in the Federal Register and made by the Secretary, after 
        consultation with the Attorney General, that experience since 
        the approval of the drug or combinations of drugs has shown 
        that the use of the drugs or combinations of drugs for 
        maintenance or detoxification treatment requires additional 
        standards respecting the qualifications of physicians to 
        provide such treatment, or requires standards respecting the 
        quantities of the drugs that may be provided for unsupervised 
        use.
    ``(D)(i) A waiver under subparagraph (A) with respect to a 
physician is not in effect unless (in addition to conditions under 
subparagraphs (B) and (C)) the following conditions are met:
            ``(I) The notification under subparagraph (B) is in writing 
        and states the name of the physician.
            ``(II) The notification identifies the registration issued 
        for the physician pursuant to subsection (f).
            ``(III) If the physician is a member of a group practice, 
        the notification states the names of the other physicians in 
        the practice and identifies the registrations issued for the 
        other physicians pursuant to subsection (f).
            ``(IV) A period of 45 days has elapsed after the date on 
        which the notification was submitted, and during such period 
        the physician does not receive from the Secretary a written 
        notice that one or more of the conditions specified in 
        subparagraph (B), subparagraph (C), or this subparagraph, have 
        not been met.
    ``(ii) The Secretary shall provide to the Attorney General such 
information contained in notifications under subparagraph (B) as the 
Attorney General may request.
    ``(E) If in violation of subparagraph (A) a physician dispenses or 
prescribes narcotic drugs in schedule III, IV, or V, or combinations of 
such drugs, for maintenance treatment or detoxification treatment, the 
Attorney General may, for purposes of section 304(a)(4), consider the 
physician to have committed an act that renders the registration of the 
physician pursuant to subsection (f) to be inconsistent with the public 
interest.
    ``(F)(i) Upon determining that a physician meets the conditions 
specified in subparagraph (B), the Secretary shall notify the physician 
and the Attorney General.
    ``(ii) Upon receiving notice with respect to a physician under 
clause (i), the Attorney General shall assign the physician an 
identification number under this paragraph for inclusion with the 
physician's current registration to prescribe narcotics. An 
identification number assigned a physician under this clause shall be 
appropriate to preserve the confidentiality of a patient prescribed 
narcotic drugs covered by this paragraph by the physician.
    ``(iii) If the Secretary fails to make a determination described in 
clause (i) by the end of the 45-day period beginning on the date of the 
receipt by the Secretary of a notification from a physician under 
subparagraph (B), the Attorney General shall assign the physician an 
identification number described in clause (ii) at the end of such 
period.
    ``(G) In this paragraph:
            ``(i) The term `group practice' has the meaning given such 
        term in section 1877(h)(4) of the Social Security Act.
            ``(ii) The term `physician' has the meaning given such term 
        in section 1861(r) of the Social Security Act.
    ``(H)(i) This paragraph takes effect on the date of the enactment 
of the Methamphetamine Anti-Proliferation Act of 2000, and remains in 
effect thereafter except as provided in clause (iii) (relating to a 
decision by the Secretary or the Attorney General that this paragraph 
should not remain in effect).
    ``(ii) For the purposes relating to clause (iii), the Secretary and 
the Attorney General shall, during the 3-year period beginning on the 
date of the enactment of the Methamphetamine Anti-Proliferation Act of 
2000, make determinations in accordance with the following:
            ``(I)(aa) The Secretary shall--
                    ``(aaa) make a determination of whether treatments 
                provided under waivers under subparagraph (A) have been 
                effective forms of maintenance treatment and 
                detoxification treatment in clinical settings;
                    ``(bbb) make a determination regarding whether such 
                waivers have significantly increased (relative to the 
                beginning of such period) the availability of 
                maintenance treatment and detoxification treatment; and
                    ``(ccc) make a determination regarding whether such 
                waivers have adverse consequences for the public 
                health.
            ``(bb) In making determinations under this subclause, the 
        Secretary--
                    ``(aaa) may collect data from the practitioners for 
                whom waivers under subparagraph (A) are in effect;
                    ``(bbb) shall issue appropriate guidelines or 
                regulations (in accordance with procedures for 
                substantive rules under section 553 of title 5, United 
                States Code) specifying the scope of the data that will 
                be required to be provided under this subclause and the 
                means through which the data will be collected; and
                    ``(ccc) shall, with respect to collecting such 
                data, comply with applicable provisions of chapter 6 of 
                title 5, United States Code (relating to a regulatory 
                flexibility analysis), and of chapter 8 of such title 
                (relating to congressional review of agency 
                rulemaking).
            ``(II) The Attorney General shall--
                    ``(aa) make a determination of the extent to which 
                there have been violations of the numerical limitations 
                established under subparagraph (B) for the number of 
                individuals to whom a practitioner may provide 
                treatment; and
                    ``(bb) make a determination regarding whether 
                waivers under subparagraph (A) have increased (relative 
                to the beginning of such period) the extent to which 
                narcotic drugs in schedule III, IV, or V, or 
                combinations of such drugs, are being dispensed or 
                prescribed, or possessed, in violation of this Act.
    ``(iii) If, before the expiration of the period specified in clause 
(ii), the Secretary or the Attorney General publishes in the Federal 
Register a decision, made on the basis of determinations under such 
clause, that this paragraph should not remain in effect, this paragraph 
ceases to be in effect 60 days after the date on which the decision is 
so published. The Secretary shall, in making any such decision, consult 
with the Attorney General, and shall, in publishing the decision in the 
Federal Register, include any comments received from the Attorney 
General for inclusion in the publication. The Attorney General shall, 
in making any such decision, consult with the Secretary, and shall, in 
publishing the decision in the Federal Register, include any comments 
received from the Secretary for inclusion in the publication.
    ``(I) During the 3-year period beginning on the date of the 
enactment of the Methamphetamine Anti-Proliferation Act of 2000, a 
State may not preclude a practitioner from dispensing or prescribing 
narcotic drugs in schedule III, IV, or V, or combinations of such 
drugs, to patients for maintenance or detoxification treatment in 
accordance with this paragraph, or the other amendments made by section 
22 of that Act, unless, before the expiration of that 3-year period, 
the State enacts a law prohibiting a practitioner from dispensing or 
prescribing such drugs or combination of drugs.''.
    (b) Conforming Amendments.--Section 304 of the Controlled 
Substances Act (21 U.S.C. 824) is amended--
            (1) in subsection (a), in the matter following paragraph 
        (5), by striking ``section 303(g)'' each place the term appears 
        and inserting ``section 303(g)(1)''; and
            (2) in subsection (d), by striking ``section 303(g)'' and 
        inserting ``section 303(g)(1)''.
    (c) Authorization of Appropriations.--There is hereby authorized to 
be appropriated for purposes of activities under section 303(g)(2) of 
the Controlled Substances Act, as added by subsection (a), amounts as 
follows:
            (1) For fiscal year 2000, $3,000,000.
            (2) For each fiscal year after fiscal year 2000, such sums 
        as may be necessary for such fiscal year.

                       Subtitle C--Cocaine Powder

SEC. 1571. SHORT TITLE.

    This subtitle may be cited as the ``Powder Cocaine Sentencing Act 
of 2000''.

SEC. 1572. SENTENCING FOR VIOLATIONS INVOLVING COCAINE POWDER.

    (a) Amendment of Controlled Substances Act.--
            (1) Large quantities.--Section 401(b)(1)(A)(ii) of the 
        Controlled Substances Act (21 U.S.C. 841(b)(1)(A)(ii)) is 
        amended by striking ``5 kilograms'' and inserting ``500 
        grams''.
            (2) Small quantities.--Section 401(b)(1)(B)(ii) of the 
        Controlled Substances Act (21 U.S.C. 841(b)(1)(B)(ii)) is 
        amended by striking ``500 grams'' and inserting ``50 grams''.
    (b) Amendment of Controlled Substances Import and Export Act.--
            (1) Large quantities.--Section 1010(b)(1)(B) of the 
        Controlled Substances Import and Export Act (21 U.S.C. 
        960(b)(1)(B)) is amended by striking ``5 kilograms'' and 
        inserting ``500 grams''.
            (2) Small quantities.--Section 1010(b)(2)(B) of the 
        Controlled Substances Import and Export Act (21 U.S.C. 
        960(b)(2)(B)) is amended by striking ``500 grams'' and 
        inserting ``50 grams''.
    (c) Amendment of Sentencing Guidelines.--Pursuant to section 994 of 
title 28, United States Code, the United States Sentencing Commission 
shall amend the Federal sentencing guidelines to reflect the amendments 
made by this section.

                     Subtitle D--Education Matters

SEC. 1581. SAFE SCHOOLS.

    (a) Amendments.--Part F of title XIV of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 8921 et seq.) is amended as 
follows:
            (1) Short title.--Section 14601(a) is amended by replacing 
        ``Gun-Free'' with ``Safe'', and ``1994'' with ``1999''.
            (2) Requirements.--Section 14601(b)(1) is amended by 
        inserting after ``determined'' the following: ``to be in 
        possession of felonious quantities of an illegal drug, on 
        school property under the jurisdiction of, or in a vehicle 
        operated by an employee or agent of, a local educational agency 
        in that State, or''.
            (3) Definitions.--Section 14601(b)(4) is amended by 
        replacing ``Definition'' with ``Definitions'' in the catchline, 
        by replacing ``section'' in the matter under the catchline with 
        ``part'', by redesignating the matter under the catchline after 
        the comma as subparagraph (A), by replacing the period with a 
        semicolon, and by adding new subparagraphs (B), (C), and (D) as 
        follows:
                    ``(B) the term `illegal drug' means a controlled 
                substance, as defined in section 102(6) of the 
                Controlled Substances Act (21 U.S.C. 802(6)), the 
                possession of which is unlawful under the Act (21 
                U.S.C. 801 et seq.) or under the Controlled Substances 
                Import and Export Act (21 U.S.C. 951 et seq.), but does 
                not mean a controlled substance used pursuant to a 
                valid prescription or as authorized by law; and
                    ``(C) the term `illegal drug paraphernalia' means 
                drug paraphernalia, as defined in section 422(d) of the 
                Controlled Substances Act (21 U.S.C. 863(d)), except 
                that the first sentence of that section shall be 
                applied by inserting `or under the Controlled 
                Substances Import and Export Act (21 U.S.C. 951 et 
                seq.)', before the period.
                    ``(D) the term `felonious quantities of an illegal 
                drug' means any quantity of an illegal drug--
                            ``(i) possession of which quantity would, 
                        under Federal, State, or local law, either 
                        constitute a felony or indicate an intent to 
                        distribute; or
                            ``(ii) that is possessed with an intent to 
                        distribute.''.
                    (4) Report to state.--Section 14601(d)(2)(C) is 
                amended by inserting ``illegal drugs or'' before 
                ``weapons''.
                    (5) Repealer.--Section 14601 is amended by striking 
                subsection (f).
                    (6) Policy regarding criminal justice system 
                referral.--Section 14602(a) is amended by replacing 
                ``served by'' with ``under the jurisdiction of'', and 
                by inserting after ``who'' the following: ``is in 
                possession of an illegal drug, or illegal drug 
                paraphernalia, on school property under the 
                jurisdiction of, or in a vehicle operated by an 
                employee or agent of, such agency, or who''.
                    (7) Data and policy dissemination under idea.--
                Section 14603 is amended by inserting ``current'' 
                before ``policy'', by striking ``in effect on October 
                20, 1994'', by striking all the matter after 
                ``schools'' and inserting a period thereafter, and by 
                inserting before ``engaging'' the following: 
                ``possessing illegal drugs, or illegal drug 
                paraphernalia, on school property, or in vehicles 
                operated by employees or agents of, schools or local 
                educational agencies, or''.
    (b) Compliance Date; Reporting.--(1) States shall have 2 years from 
the date of the enactment of this Act to comply with the requirements 
established in the amendments made by subsection (a).
    (2) Not later than 3 years after the date of the enactment of this 
Act, the Secretary of Education shall submit to Congress a report on 
any State that is not in compliance with the requirements of this 
section.
    (3) Not later than 2 years after the date of the enactment of this 
Act, the Secretary of Education shall submit to Congress a report 
analyzing the strengths and weaknesses of approaches regarding the 
disciplining of children with disabilities.

SEC. 1582. STUDENT SAFETY AND FAMILY SCHOOL CHOICE.

    Subpart 1 of part A of title I of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6311 et seq.) is amended by inserting 
after section 1115A of such Act (20 U.S.C. 6316) the following:

``SEC. 1115B. STUDENT SAFETY AND FAMILY SCHOOL CHOICE.

    ``(a) In General.--Notwithstanding any other provision of law, if a 
student is eligible to be served under section 1115(b), or attends a 
school eligible for a schoolwide program under section 1114, and 
becomes a victim of a violent criminal offense, including drug-related 
violence, while in or on the grounds of a public elementary school or 
secondary school that the student attends and that receives assistance 
under this part, then the local educational agency may use funds 
provided under this part or under any other Federal education program 
to pay the supplementary costs for such student to attend another 
school. The agency may use the funds to pay for the supplementary costs 
of such student to attend any other public or private elementary school 
or secondary school, including a religious school, in the same State as 
the school where the criminal offense occurred, that is selected by the 
student's parent. The State educational agency shall determine what 
actions constitute a violent criminal offense for purposes of this 
section.
    ``(b) Supplementary Costs.--The supplementary costs referred to in 
subsection (a) shall not exceed--
            ``(1) in the case of a student for whom funds under this 
        section are used to enable the student to attend a public 
        elementary school or secondary school served by a local 
        educational agency that also serves the school where the 
        violent criminal offense occurred, the costs of supplementary 
        educational services and activities described in section 
        1114(b) or 1115(c) that are provided to the student;
            ``(2) in the case of a student for whom funds under this 
        section are used to enable the student to attend a public 
        elementary school or secondary school served by a local 
        educational agency that does not serve the school where the 
        violent criminal offense occurred but is located in the same 
        State--
                    ``(A) the costs of supplementary educational 
                services and activities described in section 1114(b) or 
                1115(c) that are provided to the student; and
                    ``(B) the reasonable costs of transportation for 
                the student to attend the school selected by the 
                student's parent; and
            ``(3) in the case of a student for whom funds under this 
        section are used to enable the student to attend a private 
        elementary school or secondary school, including a religious 
        school, the costs of tuition, required fees, and the reasonable 
        costs of such transportation.
    ``(c) Construction.--Nothing in this Act or any other Federal law 
shall be construed to prevent a parent assisted under this section from 
selecting the public or private, including religious, elementary school 
or secondary school that a child of the parent will attend within the 
State.
    ``(d) Consideration of Assistance.--Subject to subsection (h), 
assistance made available under this section that is used to pay the 
costs for a student to attend a private or religious school shall not 
be considered to be Federal aid to the school, and the Federal 
Government shall have no authority to influence or regulate the 
operations of a private or religious school as a result of assistance 
received under this section.
    ``(e) Continuing Eligibility.--A student assisted under this 
section shall remain eligible to continue receiving assistance under 
this section for at least 3 academic years without regard to whether 
the student is eligible for assistance under section 1114 or 1115(b).
    ``(f) Tuition Charges.--Assistance under this section may not be 
used to pay tuition or required fees at a private elementary school or 
secondary school in an amount that is greater than the tuition and 
required fees paid by students not assisted under this section at such 
school.
    ``(g) Special Rule.--Any school receiving assistance provided under 
this section shall comply with title VI of the Civil Rights Act of 1964 
(42 U.S.C. 2000d et seq.) and not discriminate on the basis race, 
color, or national origin.
    ``(h) Assistance; Taxes and Other Federal Programs.--
            ``(1) Assistance to families, not schools.--Assistance 
        provided under this section shall be considered to be aid to 
        families, not schools. Use of such assistance at a school shall 
        not be construed to be Federal financial aid or assistance to 
        that school.
            ``(2) Taxes and determinations of eligibility for other 
        federal programs.--Assistance provided under this section to a 
        student shall not be considered to be income of the student or 
        the parent of such student for Federal, State, or local tax 
        purposes or for determining eligibility for any other Federal 
        program.
    ``(i) Part B of the Individuals With Disabilities Education Act.--
Nothing in this section shall be construed to affect the requirements 
of part B of the Individuals with Disabilities Education Act (20 U.S.C. 
1411 et seq.).
    ``(j) Maximum Amount.--Notwithstanding any other provision of this 
section, the amount of assistance provided under this part for a 
student shall not exceed the per pupil expenditure for elementary or 
secondary education, as appropriate, by the local educational agency 
that serves the school where the criminal offense occurred for the 
fiscal year preceding the fiscal year for which the determination is 
made.''.

SEC. 1583. TRANSFER OF REVENUES.

    (a) In General.--Notwithstanding any other provision of Federal 
law, a State, a State educational agency, or a local educational agency 
may transfer any non-Federal public funds associated with the education 
of a student who is a victim of a violent criminal offense while in or 
on the grounds of a public elementary school or secondary school served 
by a local educational agency to another local educational agency or to 
a private elementary school or secondary school, including a religious 
school.
    (b) Definitions.--For the purpose of subsection (a), the terms 
``elementary school'', ``secondary school'', ``local educational 
agency'', and ``State educational agency'' have the meanings given such 
terms in section 14101 of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 8801).

                       Subtitle E--Miscellaneous

SEC. 1591. NOTICE; CLARIFICATION.

    (a) Notice of Issuance.--Section 3103a of title 18, United States 
Code, is amended by adding at the end the following new sentence: 
``With respect to any issuance under this section or any other 
provision of law (including section 3117 and any rule), any notice 
required, or that may be required, to be given may be delayed pursuant 
to the standards, terms, and conditions set forth in section 2705, 
unless otherwise expressly provided by statute.''.
    (b) Clarification.--(1) Section 2(e) of Public Law 95-78 (91 Stat. 
320) is amended by adding at the end the following:
``Subdivision (d) of such rule, as in effect on this date, is amended 
by inserting `tangible' before `property' each place it occurs.''.
    (2) The amendment made by paragraph (1) shall take effect on the 
date of the enactment of this Act.

SEC. 1592. DOMESTIC TERRORISM ASSESSMENT AND RECOVERY.

    (a) In General.--The Federal Bureau of Investigation shall prepare 
a study assessing--
            (1) the threat posed by the Fuerzas Armadas de Liberacion 
        Nacional Puertorriquena (FALN) and Los Macheteros terrorist 
        organizations to the United States and its territories as of 
        July 31, 1999; and
            (2) what effect the President's offer of clemency to 16 
        FALN and Los Macheteros members on August 11, 1999, and the 
        subsequent release of 11 of those members, will have on the 
        threat posed by those terrorist organizations to the United 
        States and its territories.
    (b) Issues Examined.--In conducting and preparing the study under 
subsection (a), the Federal Bureau of Investigation shall address--
            (1) the threat posed by the FALN and Los Macheteros 
        organizations to law enforcement officers, prosecutors, defense 
        attorneys, witnesses, and judges involved in the prosecution of 
        members of the FALN and Los Macheteros, both in the United 
        States and its territories;
            (2) the roles played by each the 16 members offered 
        clemency by the President on August 11, 1999, in the FALN and 
        Los Macheteros organizations;
            (3) the extent to which the FALN and Los Macheteros 
        organizations are associated with other known terrorist 
        organizations or countries suspected of sponsoring terrorism;
            (4) the threat posed to the national security interests of 
        the United States by the FALN and Los Macheteros organizations;
            (5) whether the offer of clemency to, or release of, any of 
        the 16 FALN or Los Macheteros members would violate, or be 
        inconsistent with, the United States' obligations under 
        international treaties and agreements governing terrorist 
        activity; and
            (6) the effect on law enforcement's ability to solve open 
        cases and apprehend fugitives resulting from the offer of 
        clemency to the 16 FALN and Los Macheteros members, without 
        first requiring each of them to provide the government all 
        truthful information and evidence he or she has concerning open 
        investigations and fugitives associated with the FALN and Los 
        Macheteros organizations.
    (c) Report.--Not later than 30 days after the date of the enactment 
of this Act, the Federal Bureau of Investigation shall submit to 
Congress a report on the study conducted under subsection (a).

SEC. 1593. ANTIDRUG MESSAGES ON FEDERAL GOVERNMENT INTERNET WEBSITES.

    Not later than 90 days after the date of the enactment of this Act, 
the head of each department, agency, and establishment of the Federal 
Government shall, in consultation with the Director of the Office of 
National Drug Control Policy, place antidrug messages on appropriate 
Internet websites controlled by such department, agency, or 
establishment which messages shall, where appropriate, contain an 
electronic hyperlink to the Internet website, if any, of the Office.

SEC. 1594. STATE SCHOOLS.

    (a) Amendments.--Part F of title XIV of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 8921 et seq.) is amended as 
follows:
            (1) Short title.--Section 14601(a) is amended by replacing 
        ``Gun-Free'' with ``Safe'', and ``1994'' with ``1999''.
            (2) Requirements.--Section 14601(b)(1) is amended by 
        inserting after ``determined'' the following: ``to be in 
        possession of felonious quantities of an illegal drug, on 
        school property under the jurisdiction of, or in a vehicle 
        operated by an employee or agent of, a local educational agency 
        in that State, or''.
            (3) Definitions.--Section 14601(b)(4) is amended by 
        replacing ``Definition'' with ``Definitions'' in the catchline, 
        by replacing ``section'' in the matter under the catchline with 
        ``part'', by redesignating the matter under the catchline after 
        the comma as subparagraph (A), by replacing the period with a 
        semicolon, and by adding new subparagraphs (B), (C), and (D) as 
        follows:
                    ``(B) The term `illegal drug' means a controlled 
                substance, as defined in section 102(6) of the 
                Controlled Substances Act (21 U.S.C. 802(6)), the 
                possession of which is unlawful under the Act (21 
                U.S.C. 801 et seq.) or under the Controlled Substances 
                Import and Export Act (21 U.S.C. 951 et seq.), but does 
                not mean a controlled substance used pursuant to a 
                valid prescription or as authorized by law.
                    ``(C) The term `illegal drug paraphernalia' means 
                drug paraphernalia, as defined in section 422(d) of the 
                Controlled Substances Act (21 U.S.C. 863(d)), except 
                that the first sentence of that section shall be 
                applied by inserting `or under the Controlled 
                Substances Import and Export Act (21 U.S.C. 951 et 
                seq.)', before the period.
                    ``(D) The term `felonious quantities of an illegal 
                drug' means any quantity of an illegal drug--
                            ``(i) possession of which quantity would, 
                        under Federal, State, or local law, either 
                        constitute a felony or indicate an intent to 
                        distribute; or
                            ``(ii) that is possessed with an intent to 
                        distribute.''.
            (4) Report to state.--Section 14601(d)(2)(C) is amended by 
        inserting ``illegal drugs or'' before ``weapons''.
            (5) Repealer.--Section 14601 is amended by striking 
        subsection (f).
            (6) Policy regarding criminal justice system referral.--
        Section 14602(a) is amended by replacing ``served by'' with 
        ``under the jurisdiction of'', and by inserting after ``who'' 
        the following: ``is in possession of an illegal drug, or 
        illegal drug paraphernalia, on school property under the 
        jurisdiction of, or in a vehicle operated by an employee or 
        agent of, such agency, or who''.
            (7) Data and policy dissemination under idea.--Section 
        14603 is amended by inserting ``current'' before ``policy'', by 
        striking ``in effect on October 20, 1994'', by striking all the 
        matter after ``schools'' and inserting a period thereafter, and 
        by inserting before ``engaging'' the following: ``possessing 
        illegal drugs, or illegal drug paraphernalia, on school 
        property, or in vehicles operated by employees or agents of, 
        schools or local educational agencies, or''.
    (b) Compliance Date; Reporting.--(1) States shall have 2 years from 
the date of enactment of this Act to comply with the requirements 
established in the amendments made by subsection (a).
    (2) Not later than 3 years after the date of enactment of this Act, 
the Secretary of Education shall submit to Congress a report on any 
State that is not in compliance with the requirements of this part.
    (3) Not later than 2 years after the date of enactment of this Act, 
the Secretary of Education shall submit to Congress a report analyzing 
the strengths and weaknesses of approaches regarding the disciplining 
of children with disabilities.

SEC. 1595. STUDENT SAFETY AND FAMILY SCHOOL CHOICE.

    Subpart 1 of part A of title I of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6311 et seq.) is amended by inserting 
after section 1115A of such Act (20 U.S.C. 6316) the following:

``SEC. 1115B. STUDENT SAFETY AND FAMILY SCHOOL CHOICE.

    ``(a) In General.--Notwithstanding any other provision of law, if a 
student is eligible to be served under section 1115(b), or attends a 
school eligible for a schoolwide program under section 1114, and 
becomes a victim of a violent criminal offense, including drug-related 
violence, while in or on the grounds of a public elementary school or 
secondary school that the student attends and that receives assistance 
under this part, then the local educational agency may use funds 
provided under this part or under any other Federal education program 
to pay the supplementary costs for such student to attend another 
school. The agency may use the funds to pay for the supplementary costs 
of such student to attend any other public or private elementary school 
or secondary school, including a religious school, in the same State as 
the school where the criminal offense occurred, that is selected by the 
student's parent. The State educational agency shall determine what 
actions constitute a violent criminal offense for purposes of this 
section.
    ``(b) Supplementary Costs.--The supplementary costs referred to in 
subsection (a) shall not exceed--
            ``(1) in the case of a student for whom funds under this 
        section are used to enable the student to attend a public 
        elementary school or secondary school served by a local 
        educational agency that also serves the school where the 
        violent criminal offense occurred, the costs of supplementary 
        educational services and activities described in section 
        1114(b) or 1115(c) that are provided to the student;
            ``(2) in the case of a student for whom funds under this 
        section are used to enable the student to attend a public 
        elementary school or secondary school served by a local 
        educational agency that does not serve the school where the 
        violent criminal offense occurred but is located in the same 
        State--
                    ``(A) the costs of supplementary educational 
                services and activities described in section 1114(b) or 
                1115(c) that are provided to the student; and
                    ``(B) the reasonable costs of transportation for 
                the student to attend the school selected by the 
                student's parent; and
            ``(3) in the case of a student for whom funds under this 
        section are used to enable the student to attend a private 
        elementary school or secondary school, including a religious 
        school, the costs of tuition, required fees, and the reasonable 
        costs of such transportation.
    ``(c) Construction.--Nothing in this Act or any other Federal law 
shall be construed to prevent a parent assisted under this section from 
selecting the public or private, including religious, elementary school 
or secondary school that a child of the parent will attend within the 
State.
    ``(d) Consideration of Assistance.--Subject to subsection (h), 
assistance made available under this section that is used to pay the 
costs for a student to attend a private or religious school shall not 
be considered to be Federal aid to the school, and the Federal 
Government shall have no authority to influence or regulate the 
operations of a private or religious school as a result of assistance 
received under this section.
    ``(e) Continuing Eligibility.--A student assisted under this 
section shall remain eligible to continue receiving assistance under 
this section for at least 3 academic years without regard to whether 
the student is eligible for assistance under section 1114 or 1115(b).
    ``(f) Tuition Charges.--Assistance under this section may not be 
used to pay tuition or required fees at a private elementary school or 
secondary school in an amount that is greater than the tuition and 
required fees paid by students not assisted under this section at such 
school.
    ``(g) Special Rule.--Any school receiving assistance provided under 
this section shall comply with title VI of the Civil Rights Act of 1964 
(42 U.S.C. 2000d et seq.) and not discriminate on the basis of race, 
color, or national origin.
    ``(h) Assistance; Taxes and Other Federal Programs.--
            ``(1) Assistance to families, not schools.--Assistance 
        provided under this section shall be considered to be aid to 
        families, not schools. Use of such assistance at a school shall 
        not be construed to be Federal financial aid or assistance to 
        that school.
            ``(2) Taxes and determinations of eligibility for other 
        federal programs.--Assistance provided under this section to a 
        student shall not be considered to be income of the student or 
        the parent of such student for Federal, State, or local tax 
        purposes or for determining eligibility for any other Federal 
        program.
    ``(i) Part B of the Individuals With Disabilities Education Act.--
Nothing in this section shall be construed to affect the requirements 
of part B of the Individuals with Disabilities Education Act (20 U.S.C. 
1411 et seq.).
    ``(j) Maximum Amount.--Notwithstanding any other provision of this 
section, the amount of assistance provided under this part for a 
student shall not exceed the per pupil expenditure for elementary or 
secondary education, as appropriate, by the local educational agency 
that serves the school where the criminal offense occurred for the 
fiscal year preceding the fiscal year for which the determination is 
made.''.

SEC. 1596. TRANSFER OF REVENUES.

    (a) In General.--Notwithstanding any other provision of Federal 
law, a State, a State educational agency, or a local educational agency 
may transfer any non-Federal public funds associated with the education 
of a student who is a victim of a violent criminal offense while in or 
on the grounds of a public elementary school or secondary school served 
by a local educational agency to another local educational agency or to 
a private elementary school or secondary school, including a religious 
school.
    (b) Definitions.--For the purpose of subsection (a), the terms 
``elementary school'', ``secondary school'', ``local educational 
agency'', and ``State educational agency'' have the meanings given such 
terms in section 14101 of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 8801).

SEC. 1597. INCREASED PENALTIES FOR DISTRIBUTING DRUGS TO MINORS.

    Section 418 of the Controlled Substances Act (21 U.S.C. 859) is 
amended--
            (1) in subsection (a), by strking ``one year'' and 
        inserting ``3 years''; and
            (2) in subsection (b), by striking ``one year'' and 
        inserting ``5 years''.

SEC. 1598. INCREASED PENALTY FOR DRUG TRAFFICKING IN OR NEAR A SCHOOL 
              OR OTHER PROTECTED LOCATION.

    Section 419 of the Controlled Substances Act (21 U.S.C. 860) is 
amended--
            (1) in subsection (a), by striking ``one year'' and 
        inserting ``3 years''; and
            (2) in subsection (b), by striking ``three years'' each 
        place that term appears and inserting ``5 years''.

SEC. 1599. SEVERABILITY.

    Any provision of this title held to be invalid or unenforceable by 
its terms, or as applied to any person or circumstance, shall be 
construed as to give the maximum effect permitted by law, unless such 
provision is held to be utterly invalid or unenforceable, in which 
event such provision shall be severed from this title and shall not 
affect the applicability of the remainder of this title, or of such 
provision, to other persons not similarly situated or to other, 
dissimilar circumstances.

TITLE XVI--PROTECTION FROM THE IMPACT OF BANKRUPTCY OF CERTAIN ELECTRIC 
                               UTILITIES

SEC. 1601. SHORT TITLE.

    This title may be cited as the ``Emergency Imported Electric Power 
Price Reduction Act of 2000''.

SEC. 1602. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) the protection of the public health and welfare, the 
        preservation of national security, and the regulation of 
        interstate and foreign commerce require that electric power 
        imported into the United States be priced fairly and 
        competitively;
            (2) the importation of electric power into the United 
        States is a matter vested with the public interest that--
                    (A) involves an essential and extensively regulated 
                infrastructure industry; and
                    (B) affects consumers, the cost of goods 
                manufactured and services rendered, and the economic 
                well-being and livelihood of individuals and society;
            (3) it is essential that imported electric power be 
        priced--
                    (A) in a manner that is competitive with domestic 
                electric power and thereby contribute to robust and 
                sound national and regional economies; and
                    (B) not at a rate that is so high as to result in 
                the imminent bankruptcy of electric utilities in a 
                State; and
            (4) the purchase of imported electric power by the Vermont 
        Joint Owners under the Firm Power and Energy Contract with 
        Hydro-Quebec dated December 4, 1987--
                    (A) is not consistent with the findings stated in 
                paragraphs (1), (2), and (3); and
                    (B) threatens the economic well-being of the States 
                and regions in which the imported electric power is 
                provided contrary to the public policy of the United 
                States as set forth in the findings stated in 
                paragraphs (1), (2), and (3).
    (b) Purposes.--The purposes of this title are--
            (1) to facilitate the public policy of the United States as 
        set forth in the findings stated in paragraphs (1), (2), and 
        (3) of subsection (a);
            (2) to remove a serious threat to the economic well-being 
        of the States and regions in which imported electric power is 
        provided under the contract referred to in section 1802(a)(4); 
        and
            (3) to facilitate revisions to the price elements of the 
        contract referred to in section 1802(a)(4) by declaring and 
        making unlawful, effective 180 days after the date of enactment 
        of this Act, the contract as it exists on the date of enactment 
        of this Act.

SEC. 1603. UNLAWFUL CONTRACT AND AMENDED CONTRACT.

    (a) In General.--Effective on the date that is 180 days after the 
date of enactment of this Act, the contract referred to in section 
1802(a)(4), as the contract exists on the date of enactment of this 
Act, shall be void.
    (b) Amendment of Contract.--This title does not preclude the 
parties to the contract referred to in section 1802(a)(4) from amending 
the contract or entering into a new contract after the date of 
enactment of this Act in a manner that is consistent with the findings 
and purposes of this title.

SEC. 1604. EXCLUSIVE ENFORCEMENT.

    (a) In General.--Only the Attorney General of a State in which 
electric power is provided under the contract referred to in section 
1802(a)(4), as the contract may be amended after the date of enactment 
of this Act, may bring a civil action in United States district court 
for an order that--
            (1) declares the amended contract not consistent with the 
        findings and purposes of this title and is therefore void;
            (2) enjoins performance of the amended contract; and
            (3) relieves the electric utilities that are party to the 
        amended contract of any liability under the contract.
    (b) Timing.--A civil action under subsection (a) shall be brought 
not later than 1 year after the date of the amended contract or new 
contract.

                 TITLE XVII--CONSUMER CREDIT DISCLOSURE

SEC. 1701. ENHANCED DISCLOSURES UNDER AN OPEN END CREDIT PLAN.

    (a) Minimum Payment Disclosures.--Section 127(b) of the Truth in 
Lending Act (15 U.S.C. 1637(b)) is amended by adding at the end the 
following:
            ``(11)(A) In the case of an open end credit plan that 
        requires a minimum monthly payment of not more than 4 percent 
        of the balance on which finance charges are accruing, the 
        following statement, located on the front of the billing 
        statement, disclosed clearly and conspicuously, in typeface no 
        smaller than the largest typeface used to make other clear and 
        conspicuous disclosures required under this subsection: 
        `Minimum Payment Warning: Making only the minimum payment will 
        increase the interest you pay and the time it takes to repay 
        your balance. For example, making only the typical 2% minimum 
        monthly payment on a balance of $1,000 at an interest rate of 
        17% would take 88 months to repay the balance in full. For an 
        estimate of the time it would take to repay your balance, 
        making only minimum payments, call this toll-free number: 
        ____________.'.
            ``(B) In the case of an open end credit plan that requires 
        a minimum monthly payment of more than 4 percent of the balance 
        on which finance charges are accruing, the following statement, 
        in a prominent location on the front of the billing statement, 
        disclosed clearly and conspicuously, in typeface no smaller 
        than the largest typeface used to make other clear and 
        conspicuous disclosures required under this subsection: 
        `Minimum Payment Warning: Making only the required minimum 
        payment will increase the interest you pay and the time it 
        takes to repay your balance. Making a typical 5% minimum 
        monthly payment on a balance of $300 at an interest rate of 17% 
        would take 24 months to repay the balance in full. For an 
        estimate of the time it would take to repay your balance, 
        making only minimum monthly payments, call this toll-free 
        number: ____________.'.
            ``(C) Notwithstanding subparagraphs (A) and (B), in the 
        case of a creditor with respect to which compliance with this 
        title is enforced by the Federal Trade Commission, the 
        following statement, in a prominent location on the front of 
        the billing statement, disclosed clearly and conspicuously, in 
        typeface no smaller than the largest typeface used to make 
        other clear and conspicuous disclosures under this subsection: 
        `Minimum Payment Warning: Making only the required minimum 
        payment will increase the interest you pay and the time it 
        takes to repay your balance. For example, making only the 
        typical 5% minimum monthly payment on a balance of $300 at an 
        interest rate of 17% would take 24 months to repay the balance 
        in full. For an estimate of the time it would take to repay 
        your balance, making only minimum monthly payments, call the 
        Federal Trade Commission at this toll-free number: 
        ____________.' A creditor who is subject to this subparagraph 
        shall not be subject to subparagraph (A) or (B).
            ``(D) Notwithstanding subparagraph (A), (B), or (C), in 
        complying with any such subparagraph, a creditor may substitute 
        an example based on an interest rate that is greater than 17 
        percent. Any creditor who is subject to subparagraph (B) may 
        elect to provide the disclosure required under subparagraph (A) 
        in lieu of the disclosure required under subparagraph (B).
            ``(E) The Board shall, by rule, periodically recalculate, 
        as necessary, the interest rate and repayment period under 
        subparagraphs (A), (B), and (C).
            ``(F) The toll-free telephone number disclosed by a 
        creditor or the Federal Trade Commission under subparagraph 
        (A), (B), or (G), as appropriate, may be a toll-free telephone 
        number established and maintained by the creditor or the 
        Federal Trade Commission, as appropriate, or may be a toll-free 
        telephone number established and maintained by a third party 
        for use by the creditor or multiple creditors or the Federal 
        Trade Commission, as appropriate. The toll-free telephone 
        number may connect consumers to an automated device through 
        which consumers may obtain information described in 
        subparagraph (A), (B), or (C), by inputting information using a 
        touch-tone telephone or similar device, if consumers whose 
        telephones are not equipped to use such automated device are 
        provided the opportunity to be connected to an individual from 
        whom the information described in subparagraph (A), (B), or 
        (C), as applicable, may be obtained. A person that receives a 
        request for information described in subparagraph (A), (B), or 
        (C) from an obligor through the toll-free telephone number 
        disclosed under subparagraph (A), (B), or (C), as applicable, 
        shall disclose in response to such request only the information 
        set forth in the table promulgated by the Board under 
        subparagraph (H)(i).
            ``(G) The Federal Trade Commission shall establish and 
        maintain a toll-free number for the purpose of providing to 
        consumers the information required to be disclosed under 
        subparagraph (C).
            ``(H) The Board shall--
                    ``(i) establish a detailed table illustrating the 
                approximate number of months that it would take to 
                repay an outstanding balance if the consumer pays only 
                the required minimum monthly payments and if no other 
                advances are made, which table shall clearly present 
                standardized information to be used to disclose the 
                information required to be disclosed under subparagraph 
                (A), (B), or (C), as applicable;
                    ``(ii) establish the table required under clause 
                (i) by assuming--
                            ``(I) a significant number of different 
                        annual percentage rates;
                            ``(II) a significant number of different 
                        account balances;
                            ``(III) a significant number of different 
                        minimum payment amounts; and
                            ``(IV) that only minimum monthly payments 
                        are made and no additional extensions of credit 
                        are obtained; and
                    ``(iii) promulgate regulations that provide 
                instructional guidance regarding the manner in which 
                the information contained in the table established 
                under clause (i) should be used in responding to the 
                request of an obligor for any information required to 
                be disclosed under subparagraph (A), (B), or (C).
            ``(I) The disclosure requirements of this paragraph do not 
        apply to any charge card account, the primary purpose of which 
        is to require payment of charges in full each month.
            ``(J) A creditor that maintains a toll-free telephone 
        number for the purpose of providing customers with the actual 
        number of months that it will take to repay the consumer's 
        outstanding balance is not subject to the requirements of 
        subparagraphs (A) and (B).''.
    (b) Regulatory Implementation.--The Board of Governors of the 
Federal Reserve System (hereafter in this Act referred to as the 
``Board'') shall promulgate regulations implementing the requirements 
of section 127(b)(11) of the Truth in Lending Act, as added by 
subsection (a) of this section. Section 127(b)(11) of the Truth in 
Lending Act, as added by subsection (a) of this section, and the 
regulations issued under this subsection shall not take effect until 
the later of 18 months after the date of enactment of this Act or 12 
months after the publication of such regulations by the Board.
    (c) Study of Financial Disclosures.--
            (1) In general.--The Board may conduct a study to determine 
        whether consumers have adequate information about borrowing 
        activities that may result in financial problems.
            (2) Factors for consideration.--In conducting a study under 
        paragraph (1), the Board should, in consultation with the other 
        Federal banking agencies (as defined in section 3 of the 
        Federal Deposit Insurance Act), the National Credit Union 
        Administration, and the Federal Trade Commission, consider the 
        extent to which--
                    (A) consumers, in establishing new credit 
                arrangements, are aware of their existing payment 
                obligations, the need to consider those obligations in 
                deciding to take on new credit, and how taking on 
                excessive credit can result in financial difficulty;
                    (B) minimum periodic payment features offered in 
                connection with open end credit plans impact consumer 
                default rates;
                    (C) consumers make only the minimum payment under 
                open end credit plans;
                    (D) consumers are aware that making only minimum 
                payments will increase the cost and repayment period of 
                an open end credit obligation; and
                    (E) the availability of low minimum payment options 
                is a cause of consumers experiencing financial 
                difficulty.
            (3) Report to congress.--Findings of the Board in 
        connection with any study conducted under this subsection shall 
        be submitted to Congress. Such report shall also include 
        recommendations for legislative initiatives, if any, of the 
        Board, based on its findings.

SEC. 1702. ENHANCED DISCLOSURE FOR CREDIT EXTENSIONS SECURED BY A 
              DWELLING.

    (a) Open End Credit Extensions.--
            (1) Credit applications.--Section 127A(a)(13) of the Truth 
        in Lending Act (15 U.S.C. 1637a(a)(13)) is amended--
                    (A) by striking ``consultation of tax advisor.--A 
                statement that the'' and inserting the following: ``tax 
                deductibility.--A statement that--
                    ``(A) the''; and
                    (B) by striking the period at the end and inserting 
                the following: ``; and
                    ``(B) in any case in which the extension of credit 
                exceeds the fair market value (as defined under the 
                Federal Internal Revenue Code) of the dwelling, the 
                interest on the portion of the credit extension that is 
                greater than the fair market value of the dwelling is 
                not tax deductible for Federal income tax purposes.''.
            (2) Credit advertisements.--Section 147(b) of the Truth in 
        Lending Act (15   U.S.C. 1665b(b)) is amended--
                    (A) by striking ``If any'' and inserting the 
                following:
            ``(1) In general.--If any''; and
                    (B) by adding at the end the following:
            ``(2) Credit in excess of fair market value.--Each 
        advertisement described in subsection (a) that relates to an 
        extension of credit that may exceed the fair market value of 
        the dwelling, and which advertisement is disseminated in paper 
        form to the public or through the Internet, as opposed to by 
        radio or television, shall include a clear and conspicuous 
        statement that--
                    ``(A) the interest on the portion of the credit 
                extension that is greater than the fair market value of 
                the dwelling is not tax deductible for Federal income 
                tax purposes; and
                    ``(B) the consumer should consult a tax advisor for 
                further information regarding the deductibility of 
                interest and charges.''.
    (b) Non-Open End Credit Extensions.--
            (1) Credit applications.--Section 128 of the Truth in 
        Lending Act (15 U.S.C. 1638) is amended--
                    (A) in subsection (a), by adding at the end the 
                following:
            ``(15) In the case of a consumer credit transaction that is 
        secured by the principal dwelling of the consumer, in which the 
        extension of credit may exceed the fair market value of the 
        dwelling, a clear and conspicuous statement that--
                    ``(A) the interest on the portion of the credit 
                extension that is greater than the fair market value of 
                the dwelling is not tax deductible for Federal income 
                tax purposes; and
                    ``(B) the consumer should consult a tax advisor for 
                further information regarding the deductibility of 
                interest and charges.''; and
                    (B) in subsection (b), by adding at the end the 
                following:
    ``(3) In the case of a credit transaction described in paragraph 
(15) of subsection (a), disclosures required by that paragraph shall be 
made to the consumer at the time of application for such extension of 
credit.''.
            (2) Credit advertisements.--Section 144 of the Truth in 
        Lending Act (15 U.S.C. 1664) is amended by adding at the end 
        the following:
    ``(e) Each advertisement to which this section applies that relates 
to a consumer credit transaction that is secured by the principal 
dwelling of a consumer in which the extension of credit may exceed the 
fair market value of the dwelling, and which advertisement is 
disseminated in paper form to the public or through the Internet, as 
opposed to by radio or television, shall clearly and conspicuously 
state that--
            ``(1) the interest on the portion of the credit extension 
        that is greater than the fair market value of the dwelling is 
        not tax deductible for Federal income tax purposes; and
            ``(2) the consumer should consult a tax advisor for further 
        information regarding the deductibility of interest and 
        charges.''.
    (c) Regulatory Implementation.--The Board of Governors of the 
Federal Reserve System (hereafter in this title referred to as the 
``Board'') shall promulgate regulations implementing the requirements 
of subsections (a) and (b) of this section. Such regulations shall not 
take effect until the later of 12 months after the date of enactment of 
this Act or 12 months after the publication of such regulations by the 
Board.

SEC. 1703. DISCLOSURES RELATED TO ``INTRODUCTORY RATES''.

    (a) Introductory Rate Disclosures.--Section 127(c) of the Truth in 
Lending Act (15 U.S.C. 1637(c)) is amended by adding at the end the 
following:
            ``(6) Additional notice concerning `introductory rates'.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), an application or solicitation to 
                open a credit card account and all promotional 
                materials accompanying such application or 
                solicitation, for which a disclosure is required under 
                paragraph (1), and that offers a temporary annual 
                percentage rate of interest, shall--
                            ``(i) use the term `introductory' in 
                        immediate proximity to each listing of the 
                        temporary annual percentage rate applicable to 
                        such account, which term shall appear clearly 
                        and conspicuously;
                            ``(ii) if the annual percentage rate of 
                        interest that will apply after the end of the 
                        temporary rate period will be a fixed rate, 
                        state the following in a clear and conspicuous 
                        manner in a prominent location closely 
                        proximate to the first listing of the temporary 
                        annual percentage rate (other than a listing of 
                        the temporary annual percentage rate in the 
                        tabular format described in section 122(c)) or, 
                        if the first listing is not the most prominent 
                        listing, then closely proximate to the most 
                        prominent listing of the temporary annual 
                        percentage rate, in each document and in no 
                        smaller type size than the smaller of the type 
                        size in which the proximate temporary annual 
                        percentage rate appears or a 12-point type 
                        size, the time period in which the introductory 
                        period will end and the annual percentage rate 
                        that will apply after the end of the 
                        introductory period; and
                            ``(iii) if the annual percentage rate that 
                        will apply after the end of the temporary rate 
                        period will vary in accordance with an index, 
                        state the following in a clear and conspicuous 
                        manner in a prominent location closely 
                        proximate to the first listing of the temporary 
                        annual percentage rate (other than a listing in 
                        the tabular format prescribed by section 
                        122(c)) or, if the first listing is not the 
                        most prominent listing, then closely proximate 
                        to the most prominent listing of the temporary 
                        annual percentage rate, in each document and in 
                        no smaller type size than the smaller of the 
                        type size in which the proximate temporary 
                        annual percentage rate appears or a 12-point 
                        type size, the time period in which the 
                        introductory period will end and the rate that 
                        will apply after that, based on an annual 
                        percentage rate that was in effect within 60 
                        days before the date of mailing the application 
                        or solicitation.
                    ``(B) Exception.--Clauses (ii) and (iii) of 
                subparagraph (A) do not apply with respect to any 
                listing of a temporary annual percentage rate on an 
                envelope or other enclosure in which an application or 
                solicitation to open a credit card account is mailed.
                    ``(C) Conditions for introductory rates.--An 
                application or solicitation to open a credit card 
                account for which a disclosure is required under 
                paragraph (1), and that offers a temporary annual 
                percentage rate of interest shall, if that rate of 
                interest is revocable under any circumstance or upon 
                any event, clearly and conspicuously disclose, in a 
                prominent manner on or with such application or 
                solicitation--
                            ``(i) a general description of the 
                        circumstances that may result in the revocation 
                        of the temporary annual percentage rate; and
                            ``(ii) if the annual percentage rate that 
                        will apply upon the revocation of the temporary 
                        annual percentage rate--
                                    ``(I) will be a fixed rate, the 
                                annual percentage rate that will apply 
                                upon the revocation of the temporary 
                                annual percentage rate; or
                                    ``(II) will vary in accordance with 
                                an index, the rate that will apply 
                                after the temporary rate, based on an 
                                annual percentage rate that was in 
                                effect within 60 days before the date 
                                of mailing the application or 
                                solicitation.
                    ``(D) Definitions.--In this paragraph--
                            ``(i) the terms `temporary annual 
                        percentage rate of interest' and `temporary 
                        annual percentage rate' mean any rate of 
                        interest applicable to a credit card account 
                        for an introductory period of less than 1 year, 
                        if that rate is less than an annual percentage 
                        rate that was in effect within 60 days before 
                        the date of mailing the application or 
                        solicitation; and
                            ``(ii) the term `introductory period' means 
                        the maximum time period for which the temporary 
                        annual percentage rate may be applicable.
                    ``(E) Relation to other disclosure requirements.--
                Nothing in this paragraph may be construed to supersede 
                subsection (a) of section 122, or any disclosure 
                required by paragraph (1) or any other provision of 
                this subsection.''.
    (b) Regulatory Implementation.--The Board of Governors of the 
Federal Reserve System (hereafter in this title referred to as the 
(``Board'') shall promulgate regulations implementing the requirements 
of section 127 of the Truth in Lending Act, as amended by subsection 
(a) of this section. Any provision set forth in subsection (a) and such 
regulations shall not take effect until the later of 12 months after 
the date of enactment of this Act or 12 months after the publication of 
such regulations by the Board.

SEC. 1704. INTERNET-BASED CREDIT CARD SOLICITATIONS.

    (a) Internet-Based Applications and Solicitations.--Section 127(c) 
of the Truth in Lending Act (15 U.S.C. 1637(c)) is amended by adding at 
the end the following:
            ``(7) Internet-based applications and solicitations.--
                    ``(A) In general.--In any solicitation to open a 
                credit card account for any person under an open end 
                consumer credit plan using the Internet or other 
                interactive computer service, the person making the 
                solicitation shall clearly and conspicuously disclose--
                            ``(i) the information described in 
                        subparagraphs (A) and (B) of paragraph (1); and
                            ``(ii) the disclosures described in 
                        paragraph (6).
                    ``(B) Form of disclosure.--The disclosures required 
                by subparagraph (A) shall be--
                            ``(i) readily accessible to consumers in 
                        close proximity to the solicitation to open a 
                        credit card account; and
                            ``(ii) updated regularly to reflect the 
                        current policies, terms, and fee amounts 
                        applicable to the credit card account.
                    ``(C) Definitions.--For purposes of this 
                paragraph--
                            ``(i) the term `Internet' means the 
                        international computer network of both Federal 
                        and non-Federal interoperable packet switched 
                        data networks; and
                            ``(ii) the term `interactive computer 
                        service' means any information service, system, 
                        or access software provider that provides or 
                        enables computer access by multiple users to a 
                        computer server, including specifically a 
                        service or system that provides access to the 
                        Internet and such systems operated or services 
                        offered by libraries or educational 
                        institutions.''.
    (b) Regulatory Implementation.--The Board of Governors of the 
Federal Reserve System (hereafter in this title referred to as the 
(``Board'') shall promulgate regulations implementing the requirements 
of section 127 of the Truth in Lending Act, as amended by subsection 
(a) of this section. Any provision set forth in subsection (a) and such 
regulations shall not take effect until the later of 12 months after 
the date of enactment of this Act or 12 months after the publication of 
such regulations by the Board.

SEC. 1705. DISCLOSURES RELATED TO LATE PAYMENT DEADLINES AND PENALTIES.

    (a) Disclosures Related to Late Payment Deadlines and Penalties.--
Section 127(b) of the Truth in Lending Act (15 U.S.C. 1637(b)) is 
amended by adding at the end the following:
            ``(12) If a late payment fee is to be imposed due to the 
        failure of the obligor to make payment on or before a required 
        payment due date the following shall be stated clearly and 
        conspicuously on the billing statement:
                    ``(A) The date on which that payment is due or, if 
                different, the earliest date on which a late payment 
                fee may be charged.
                    ``(B) The amount of the late payment fee to be 
                imposed if payment is made after such date.''.
    (b) Regulatory Implementation.--The Board of Governors of the 
Federal Reserve System (hereafter in this title referred to as the 
(``Board'') shall promulgate regulations implementing the requirements 
of section 127 of the Truth in Lending Act, as amended by subsection 
(a) of this section. Any provision set forth in subsection (a) and such 
regulations shall not take effect until the later of 12 months after 
the date of enactment of this Act or 12 months after the publication of 
such regulations by the Board.

SEC. 1706. PROHIBITION ON CERTAIN ACTIONS FOR FAILURE TO INCUR FINANCE 
              CHARGES.

    (a) Prohibition on Certain Actions for Failure to Incur Finance 
Charges.--Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is 
amended by adding at the end the following:
    ``(h) Prohibition on Certain Actions for Failure To Incur Finance 
Charges.--A creditor of an account under an open end consumer credit 
plan may not terminate an account prior to its expiration date solely 
because the consumer has not incurred finance charges on the account. 
Nothing in this subsection shall prohibit a creditor from terminating 
an account for inactivity in 3 or more consecutive months.''.
    (b) Regulatory Implementation.--The Board of Governors of the 
Federal Reserve System (hereafter in this title referred to as the 
(``Board'') shall promulgate regulations implementing the requirements 
of section 127 of the Truth in Lending Act, as amended by subsection 
(a) of this section. Any provision set forth in subsection (a) and such 
regulations shall not take effect until the later of 12 months after 
the date of enactment of this Act or 12 months after the publication of 
such regulations by the Board.

SEC. 1707. DUAL USE DEBIT CARD.

    (a) Report.--The Board may conduct a study of, and present to 
Congress a report containing its analysis of, consumer protections 
under existing law to limit the liability of consumers for unauthorized 
use of a debit card or similar access device. Such report, if 
submitted, shall include recommendations for legislative initiatives, 
if any, of the Board, based on its findings.
    (b) Considerations.--In preparing a report under subsection (a), 
the Board may include--
            (1) the extent to which section 909 of the Electronic Fund 
        Transfer Act (15 U.S.C. 1693g), as in effect at the time of the 
        report, and the implementing regulations promulgated by the 
        Board to carry out that section provide adequate unauthorized 
        use liability protection for consumers;
            (2) the extent to which any voluntary industry rules have 
        enhanced or may enhance the level of protection afforded 
        consumers in connection with such unauthorized use liability; 
        and
            (3) whether amendments to the Electronic Fund Transfer Act 
        (15 U.S.C. 1693 et seq.), or revisions to regulations 
        promulgated by the Board to carry out that Act, are necessary 
        to further address adequate protection for consumers concerning 
        unauthorized use liability.

SEC. 1708. STUDY OF BANKRUPTCY IMPACT OF CREDIT EXTENDED TO DEPENDENT 
              STUDENTS.

    (a) Study.--
            (1) In general.--The Comptroller General of the United 
        States shall conduct a study regarding the impact that the 
        extension of credit described in paragraph (2) has on the rate 
        of bankruptcy cases filed under title 11, United States Code.
            (2) Extension of credit.--The extension of credit referred 
        to in paragraph (1) is the extension of credit to individuals 
        who are--
                    (A) claimed as dependents for purposes of the 
                Internal Revenue Code of 1986; and
                    (B) enrolled in postsecondary educational 
                institutions.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Comptroller General of the United States shall submit to 
the Senate and the House of Representatives a report summarizing the 
results of the study conducted under subsection (a).




                                                       Calendar No. 807

106th CONGRESS

  2d Session

                                S. 3046

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                                 A BILL

  To amend title 11 of the United States Code, and for other purposes.

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                           September 15, 2000

            Read the second time and placed on the calendar