[Congressional Record Volume 143, Number 149 (Thursday, October 30, 1997)]
[Senate]
[Page S11499]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  INVESTMENT IN EDUCATION ACT OF 1997

  Mr. GRASSLEY. Mr. President, I ask unanimous consent that the Senate 
now proceed to the consideration of calendar No. 205, S. 1149.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       A bill (S. 1149) to amend title 11, United States Code, to 
     provide for increased education funding, and for other 
     purposes.

  The PRESIDING OFFICER. Is there objection to the immediate 
consideration of the bill?
  There being no objection, the Senate proceeded to consider the bill 
which had been reported from the Committee on the Judiciary, with an 
amendment to strike all after the enacting clause and inserting in lieu 
thereof the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Investment in Education Act 
     of 1997''.

     SEC. 2. 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), after ``507(a)(1)'', insert 
     ``(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)''; 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) of this 
     title, 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 
     set forth in this section and subject to the requirements of 
     subsection (e)--
       ``(1) claims for wages, salaries, and commissions that are 
     entitled to priority under section 507(a)(3) of this title; 
     or
       ``(2) claims for contributions to an employee benefit plan 
     entitled to priority under section 507(a)(4) of this title,

     may be paid from property of the estate which secures a tax 
     lien, or the proceeds of such property.''.
       (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. 3. ENFORCEMENT OF CHILD AND SPOUSAL SUPPORT.

       Section 522(c)(1) of title 11, United States Code, is 
     amended by inserting ``, except that, notwithstanding any 
     other Federal law or State law relating to exempted property, 
     exempt property shall be liable for debts of a kind specified 
     in section 523(a) (1) or (5) of this title'' before the 
     semicolon at the end of the paragraph.

  Mr. GRASSLEY. Mr. President, I ask unanimous consent that the 
committee substitute be agreed to, the bill be considered read a third 
time, and passed, as amended, the motion to reconsider be laid upon the 
table, and that any statements relating to the bill appear in the 
Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee substitute was agreed to.
  The bill (S. 1149), as amended, was read a third time, and passed.

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