Congressional Record, Volume 144 Issue 74 (Wednesday, June 10, 1998)

[Congressional Record Volume 144, Number 74 (Wednesday, June 10, 1998)]
[House]
[Pages H4402-H4442]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

BANKRUPTCY REFORM ACT OF 1998

The SPEAKER pro tempore. Pursuant to House Resolution 462 and rule
XXIII, the Chair declares the House in the Committee of the Whole House
on the State of the Union for the further consideration of the bill,
H.R. 3150.

{time} 1601

In the Committee of the Whole

Accordingly, the House resolved itself into the Committee of the
Whole House on the State of the Union for the further consideration of
the bill (H.R. 3150) to amend title 11 of the United States Code, and
for other purposes, with Mr. Miller of Florida in the chair.
The Clerk read the title of the bill.
The CHAIRMAN. When the Committee of the Whole rose earlier today,
amendment number 6 printed in House Report 105-573 had been disposed
of.
Pursuant to the previous order of the House, it is now in order to
consider amendment number 3 printed in House Report 105-573.

Amendment No. 3 Offered by Mr. Delahunt

Mr. DELAHUNT. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 3 offered by Mr. Delahunt:
Page 25, after line 6, insert the following (and make such
technical and conforming changes as may be appropriate):

SEC. 105. AUTHORITY TO IMPOSE FEES PAYABLE FOR COSTS INCURRED
TO ADMINISTER THE AMENDMENTS MADE BY SECTIONS
101 AND 102.

Section 1930(b) of title 28, United States Code, is
amended--
(1) by inserting ``(1)'' after ``(b)''; and
(2) by adding at the end the following:
``(2) The Judicial Conference of the United States may
prescribe additional fees that are both--
``(A) payable from disbursements to unsecured, nonpriority
creditors in cases under chapter 13 of title 11; and
``(B) based on the estimated increased costs incurred in
cases under chapters 7 and 13 of title 11 of the United
States Code, by the Government to carry out the amendments
made by title I and subtitle A of IV of the Bankruptcy Reform
Act of 1998.''.

The CHAIRMAN. Pursuant to House Resolution 462, the gentleman from
Massachusetts (Mr. Delahunt) and the gentleman from Pennsylvania (Mr.
Gekas) each will control 5 minutes.
The Chair recognizes the gentleman from Massachusetts (Mr. Delahunt).
Mr. DELAHUNT. Mr. Chairman, I yield myself such time as I may
consume.
Mr. Chairman, let me begin by acknowledging the courtesy extended to
me by the gentleman from Pennsylvania (Mr. Gekas), the chair of the
Subcommittee on Commercial and Administrative Law of the Committee on
the Judiciary. I appreciate that and acknowledge that. I was
misinformed. I thought that it was listed on today's report that it was
to be last, but I am glad that I am not last, I am glad that I am here,
and I appreciate his courtesy.
Mr. Chairman, this amendment is about credit cards. This is because,
in many respects, the entire bill is about credit cards. Credit cards
are the reason many people are in bankruptcy today, and credit cards
are the reason we are here today.
We all know there are some individuals who abuse the bankruptcy
system. And those who let their financial affairs get out of control
should take responsibility for the consequences of their action.
But responsibility is a two-way street. I find it extraordinary that
people who solicit relentlessly and indiscriminately, without hardly
any limitations on their lending practices, should pontificate about
the need for personal responsibility.
Few of us are sympathetic to that argument when we hear it from the
tobacco companies or when we hear it from the liquor industry or from
gambling interests, so why should the credit card industry get away
with this sort of hypocrisy?
My amendment would require the credit card companies to assume their
fair share of responsibility for the situation they have done so much
to create. It would authorize the Judicial Conference of the United
States to use a portion of the money paid to credit card companies and
other unsecured creditors in Chapter 13 cases to pay for the additional
costs of administering the new debt collection system the bill would
create.
That is, after all, what this bill is about. It could be said that it
deputizes Federal bankruptcy judges as collection agents for Visa and
MasterCard. I do not think and submit that it is not unreasonable for
the public to ask how this new service will be paid for.
It is not as though, in all likelihood, the public will actually see
any of the proceeds. Despite the industry-funded advertising blitz and
propaganda about the money that it will save every man, woman and child
in America, there is absolutely no reason to believe that these
companies will pass on any benefit to consumers in the form of lower
interest rates. That is something that they have never done
historically. As other interest rates have come down considerably,
credit card interest rates have continued to either stagnate or

[[Page H4403]]

climb. In fact, I just received a solicitation today in the mail, 23
percent interest. So given the fact that the public is unlikely to see
any benefits of this legislation, it seems only fair for those who will
benefit to foot the bill.
Mr. Chairman, that bill is going to be substantial. While nobody
really knows what the new collection system will cost, the CBO
estimates a cost of $214 million over 5 years, and that not including
the $40 million to $80 million to cover the salaries and expenses of
the 25 or 30 additional bankruptcy judges who would be needed to meet
the huge increase in workload that would result from the bill. We heard
testimony that absolutely underscored the fact that this would require
not just simply additional judges but support personnel and trustees.
There were estimates that were provided to members of the committee
during hearings that, in fact, the costs could very well be double what
they are now. According to the CBO estimate, that would bring the total
to between $254 million and $294 million over 5 years, over a quarter
of a billion dollars. Those costs should not be borne by the American
taxpayer. My amendment would ensure that they would not be borne by the
American taxpayer.
Mr. Chairman, I do not want to suggest that the credit industry has
been miserly regarding this legislation. Far from it. Visa and
MasterCard have spent hundreds of thousands of dollars to draft this
bill.
All my amendment says, having been so generous with their financial
largess up until now, they should make one more payment, to reimburse
the American people for increasing their bottom line.
Mr. GEKAS. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, the fullest expectation we have for H.R. 3150 is that
in the long run, the provisions that we are going to put into the law
will reduce the increase for sure of filings for bankruptcy, and with
great luck, with the economy continuing to buzz on as it is, that we
will actually be able to reduce the number of filings total across the
land. While we are doing that, a natural accompaniment to that will be
lower costs, lower costs to the taxpayers, lower costs to the
consumers, lower costs to the interest lenders and creditors, and an
impetus to further expansion of the economy.
That is why we say, in opposition to this amendment, that it is
premature to add on a fail-safe for a possible cost that may or may not
occur. On that basis, if we were to adopt this amendment, we who
proposed these reforms, who want to reform the bankruptcy system, are
second-guessing ourselves. We are saying we do not know if it is going
to work or not. We know it is going to work.
If the gentleman from Massachusetts at some future date comes up to
me and says, with a big downturn, ``I told you so, we should have
anticipated these rising costs and you should have listened to my
amendment,'' I will relent, I will tell him that I am ready to accept
fault for that, and we will work together at that time to correct
whatever fee shortage or cost shortage or revenue shortage that might
occur as a result of this legislation.
But for the time being, I wish he would join with us in endorsing a
concept and the language of the bill before us, H.R. 3150, so that we
can get about the business of improving our bankruptcy laws, making
sure that people have the fullest opportunity to get a fresh start
where required, and on the other side of the ledger, to give full
opportunity to repay some of the debt where and when possible.
Mr. Chairman, I ask everyone to vote ``no'' on the amendment.
Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN pro tempore (Mr. Calvert). The question is on the
amendment offered by the gentleman from Massachusetts (Mr. Delahunt).
The question was taken; and the Chairman pro tempore announced that
the noes appeared to have it.
Mr. DELAHUNT. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN pro tempore. Pursuant to House Resolution 462, further
proceedings on the amendment offered by the gentleman from
Massachusetts (Mr. Delahunt) will be postponed.
It is now in order to consider amendment number 7 printed in House
Report 105-573.

Amendment No. 7 Offered by Mr. Paul

Mr. PAUL. Mr. Chairman, I offer an amendment.
The CHAIRMAN pro tempore. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 7 offered by Mr. Paul:
Page 78, after line 2, insert the following (and make such
technical and conforming changes as may be appropriate):

SEC. 152. PRIORITIES.

Section 507(a) of title 11, United States Code, as amended
by any other provision of this Act, is amended--
(1) in paragraph (9), as so redesignated and amended by any
other provision of this Act--
(A) by inserting ``firstly of local governmental units,
secondly of State governmental units, and thirdly of all
other governmental units, after ``claims'';
(B) by striking ``(9) Ninth'' and inserting ``(11)
Eleventh''; and
(C) by transferring such paragraph so as to insert such
paragraph at the end of subsection (a) of section 507;
(2) in paragraph (10), as so redesignated and amended by
any other provision of this Act, by striking ``(10) Tenth''
and inserting ``(9) Ninth'';
(3) in paragraph (11), as so redesignated and amended by
any other provision of this Act, by striking ``(11)
Eleventh'' and inserting ``(10) Tenth''.

The CHAIRMAN pro tempore. Pursuant to House Resolution 462, the
gentleman from Texas (Mr. Paul) and the gentleman from Pennsylvania
(Mr. Gekas) each will control 5 minutes.
The Chair recognizes the gentleman from Texas (Mr. Paul).
Mr. PAUL. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, my amendment is not a complicated amendment. It merely
redesignates the priorities of governments as they line up in the
receiving end of a bankruptcy. These are unsecured debts.
Basically the way the law states now and the way the bill is written
is that the IRS is the top government agency that is going to receive
the money, and then the State and then the local government. My
suggestion in my amendment is very simple and very clear and makes a
very strong philosophic point, is why should we hold the IRS in such
high esteem? Why should they be on top of the list? Why should the
money leave the local districts and go to Washington? Why should it go
into the coffers of the IRS, funding programs that are basically
unconstitutional when there are so many programs that we are not doing
and take it out of our school districts?
If we reverse the order, the local government gets the money first,
the money that would be left over from the bankruptcy, then the State
government, and then the Federal Government. This merely states the
point, which I hope we can get across someday in this Congress, that
the priority in government should be local government, not a big,
strong Federal Government.
Indeed, today there is a lot of resentment in this country against
the IRS and the way we spend money up here, and this emphasizes a very
important point, that money should be left in the district, money
should be left in the States, and at last resort, the money should come
here to the Federal Government.
One of the arguments used against this amendment is, ``Uh-oh, it is
going to cost the Government some money.'' Cost the Government some
money by leaving the money in the State or locally, or leaving it in
the pockets of the American people as that same argument is used in tax
increases? Hardly would it be difficult for the small amounts, I do not
even know the exact amount of money that might be lost to the Treasury
because some of these funds might not flow here in this direction, but
it cannot be a tremendous amount. But what is wrong with the suggestion
that we just cut something? There are so many places that we can cut.
Instead, all we do around here is look around for more places to spend
money. Today we are even talking about increasing taxes by three-
quarters of a trillion dollars on a tobacco program. We are always
looking for more revenues and more spending programs and we are worried
about paying for a little less revenues coming into the Federal
Government.
Once again, this amendment is very clear. It states that in the order
of designating these funds on unsecured

[[Page H4404]]

creditors, local government would get the money first, then State
government, and then the Federal Government.

{time} 1615

In the 1980s, in the early 1990s, when Texas and California had
trouble, money flowed up here in the middle of bankruptcies at the same
time school districts were suffering, putting a greater burden on local
school districts. So this is to me a very clear principled position to
state that we should have local government, not Federal Government,
that we should not enhance the power and the authority of the Federal
Government and certainly should not put the IRS and the Federal
Government on the top of the pecking order. They should be at the
bottom where they deserve to be.
So I would ask my colleagues to endorse this legislation and this
amendment to this legislation. I support the legislation. I am hopeful
that this amendment will be passed.
Mr. Chairman, I reserve the balance of my time.
Mr. GEKAS. Mr. Chairman, I yield myself such time as I might consume.
Mr. Chairman, I rise in friendly opposition to the amendment because
down deep I agree with the gentleman's contentions about the tax
structure and the relevant priorities that we have for too long imposed
upon the American public with respect to the balance between local
taxation and local interests and States for that matter and vis-a-vis
the Federal overplay in both taxation and regulation and all the gamut
of items that have harmed private enterprise over the years and have
harmed actually the rights of citizens. So from that standpoint, I am
in full agreement with the gentleman.
The reservations that I have stem about my duty in handling this bill
which is a bill in bankruptcy which is embedded in the Constitution.
Therefore, the entire panoply of provisions that have to do with
bankruptcy have a national flavor, a national aegis, a national emblem,
and so concomitant with that goes the Federal revenues and Federal
Treasury that is a part of the total bankruptcy law. I am afraid that
if we reverse these priorities as they are now constituted, that we
will be infringing upon the Federal jurisdiction of bankruptcy itself,
and I can not do that.
What I want to do is to assure the gentleman that wherever we can in
pursuit of the finalization of this bill, in conference and thereafter,
that we take into account what the gentleman has said, and perhaps in
another forum and in another committee jurisdiction, Ways and Means for
instance, we can try to work out his set of priorities in a different
way. But now I am constrained to fight for the preservation of our bill
as we have constructed it with the Federal jurisdiction both in
taxation and in bankruptcy courts remaining paramount, and for that
reason I would oppose the amendment at this juncture.
Mr. Chairman, I reserve the balance of my time.
Mr. PAUL. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I would just like to respond by saying I certainly do
recognize responsibility of the U.S. Congress in dealing with national
legislation dealing with bankruptcy and that bankruptcy laws should be
uniform and fair. But this does not preclude us from thinking about the
particulars of a piece of legislation designating the importance of the
different governmental bodies, so everything I say about emphasizing
local government over Federal Government is certainly legitimate and
does not contradict in any way the notion that we should not deal with
this at all because certainly we have this authority to do so.
And it still remains to be seen with much of a cost at all involved
here; I happen to think not very much, but I would like to emphasize
once again the importance of dealing with cutting spending rather than
always resorting to say how do we pay something, pay for something, by
merely raising taxes elsewhere if we happen to work in a benefit on a
program such as this.
So I would say that it is very important that we do think about local
government over Federal government, think about less taxes and less
bureaucracy, because unless we change our mind set on this, we will
continue to put the priorities of the Federal Government and the IRS up
at the top. I want them at the bottom. That is where they deserve. They
do not know how to spend their money. They do not know how to spend
their money, and we ought to see to it that they get a lot less of it.
Mr. GEKAS. Mr. Chairman, I yield myself such time as I may consume.
The more I hear the gentleman speak, the more I am inclined to agree
with him because he makes sense with respect to the priorities that we
have allowed the IRS to grab for itself. But in any event, I will ask
for a no vote with due honor to the proposition offered by the
gentleman from Texas (Mr. Paul).
Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN. The question is on the amendment offered by the
gentleman from Texas (Mr. Paul).
The amendment was rejected.
The CHAIRMAN. It is now in order to consider Amendment No. 8 printed
in House Report 105--573.

Amendment No. 8 Offered by Mr. Gekas

Mr. GEKAS. Mr. Chairman, I offer an amendment.
The CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 8 printed in House Report 105-573 offered by Mr. Paul:
Beginning on page 82, strike line 23 and all that follows
through line 19 on page 83, and insert the following:

SEC. 182. LIMITATION.

Section 522 of title 11, United States Code, is amended--
(1) in subsection (b)(2)(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)(2)(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 365-day period ending of 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.''.

The CHAIRMAN. Pursuant to House Resolution 462, the gentleman from
Pennsylvania (Mr. Gekas) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Pennsylvania (Mr. Gekas).
Mr. GEKAS. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, from the very first moment that I began to become
involved in the bankruptcy issue and intent on preparing a product
which we have before us now which will do a great deal of good over the
next 10-15 years, I always wanted to maintain the States' rights to
describe their own set of exemptions, particularly homestead
exemptions, because I felt that was necessary for a variety of reasons
to honor the State's determination of what it wanted to grant as an
exemption, and the first proposal that I made that became a part of
this bill did so, it did honor that.
At the full Committee on the Judiciary, after an offer of an
amendment was made by the gentleman from Massachusetts (Mr. Delahunt)
to put in a $100,000 figure that would be a cap that reflected what the
Senate has done, that was adopted by the full committee mostly on the
basis that it paralleled the Senate version, as I recall. At the same
time I did indicate that I would not be bound, that I could reserve the
right to change that when we came to the full floor. Hence we are here.
Mr. Chairman, I yield for a period of 2\1/2\ minutes to the gentleman
from Florida (Mr. McCollum) to explain and to propound the amendment.
Mr. McCOLLUM. Mr. Chairman, I thank the gentleman for yielding this
time to me.
I want to explain this amendment. It strikes the $100,000 homestead
exemption cap that is in the bill and reverts back to current law in
that respect. But it does a little more than that.
In addition it denies the right of homestead exemption to somebody
who within a year of filing bankruptcy

[[Page H4405]]

takes assets, cash or whatever and places that into a home for the
purposes of defrauding creditors to avoid paying the creditors. I think
that is a very important provision that will get around the problems we
are seeing people complain about on homestead exemption law abuse, but
at the same time it will not deny the States the right to do what they
have done since 1792, and that is to decide what property is exempt.
I think that is a very important decision to be left to the States to
decide. If we put this $100,000 cap in, we are going to dictate to the
States; some States have no cap currently, some States have 100,000,
some like Massachusetts have 100,000 until you are 62, and then they
have 200,000.
And it also protects, our proposal to strike this cap, the situation
where a widow or an elderly person has paid fully for their home. Let
us say they have a modest priced home. In many States, very modest,
$110,000 value. The entire thing is mortgage fee. And the creditors
want to get at under this bill the way it is now written at the
$10,000. They are going to force that widow to sell the home, and I do
not think that is what we want to do. I think it is very important that
we protect it and adopt the Gekas-McCollum-Smith amendment to strike
the provisions in the bill as they are now on the cap and go to the
provisions that I just indicated to deny fraudulent use of the
homestead exemption.
Mr. BENTSEN. Mr. Chairman, will the gentleman yield?
Mr. McCOLLUM. I yield to the gentleman from Texas.
Mr. BENTSEN. I appreciate the gentleman yielding to me.
It is no secret that I wish this bill had nothing to do with the
homestead and we had dropped it out, but I will support the gentleman's
amendment, but I do have a question that might give some clarification.
With respect to the transfer of assets within the 1-year period,
would it be the intent if one were to prepay part of the mortgage or
pay down or even a scheduled payment on a mortgage, would those funds
be considered a transfer of assets?
Mr. McCOLLUM. No, it would not be. It has to be done with the intent,
a special extra amount of money, whatever it is, to defraud the
creditors so it is actually going out and trying to get around the
rules of the game, and that requires an element that would be far
beyond a normal routine payment. They obviously can make their routine
payments on their home, and this amendment would not affect that.
Mr. BENTSEN. Including prepayments.
Mr. McCOLLUM. Including prepayments. It would not affect it if they
have already got scheduled prepayments, and they have a right to make
those prepayments now. Obviously somebody can come in and decide they
are going to pay off the entire mortgage, and that might present a
problem of intent where other evidence could come into play because,
remember, the question here is the intent of the person who is trying
to get around the law.
I urge the adoption of the amendment. It is a good amendment.
Mr. DELAHUNT. Mr. Chairman, I rise in opposition to the amendment and
yield 2\1/2\ minutes to the distinguished gentleman from Wisconsin (Mr.
Barrett).
Mr. BARRETT of Wisconsin. Mr. Chairman, this is a doozie of an
amendment. Please listen to the debate on this amendment. Supporters of
this bill have said over and over again that the bankruptcy code should
not be used as a financial planning tool. Yet the very people who are
sponsoring the bill have offered this amendment to let wealthy debtors
continue to use the bankruptcy system as a financial planning tool that
enables them to shelter millions of dollars from the creditors. This
bill makes it tougher for people of limited means to escape their debts
by using the bankruptcy system.
Personal responsibility; that is what we all want. But what about the
personal responsibility of people who have a lot of assets? If this
amendment passes, wealthy individuals with expensive homes in one of
the five States with an unlimited homestead exemption will be able to
declare bankruptcy and enjoy a life of luxury at the expense of their
creditors.
So who are these people? People like the owner of a failed S&L who
paid off only a fraction of the $300 million in bankruptcy claims while
keeping his multimillion dollar ranch in Florida, or the convicted Wall
Street financier who filed bankruptcy while owing some $50 million in
debts and fines but still kept his $5 million Florida mansion complete
with 11 bedrooms and 21 baths, or the physician with no malpractice
insurance who has been named in 4 separate lawsuits. He filed for
bankruptcy protection and kept a $500,000 home with a 100-foot swimming
pool.
The situation has become so notorious that one Miami bankruptcy judge
told the New York Times, quote:
``Theoretically, you could shelter the Taj Mahal in this State, and
no one could do anything about it.''
Fortunately, during its markup of H.R. 3150, the Committee on the
Judiciary did do something about it, unanimously approving language
recommended by the National Bankruptcy Review Commission to place a
nationwide $100,000 cap on the amount a debtor can claim under the
exemption. A similar bipartisan amendment was unanimously approved in
the Senate. This cap would have no effect in the 43 States.
We hear two arguments against this. One is $100,000 is too low. This
is $100,000 equity, and there are only 15 percent of the people in this
country that have $100,000 equity in their home. The other is that it
violates the Constitution or State rights. This is Federal bankruptcy
courts, not State courts, Federal bankruptcy courts.
What this amendment allows someone to do if they are doing financial
planning, they want to declare bankruptcy and they live in New York:
buy a beautiful piece of property in Miami, stay in New York for 365
days, go down, live in that beautiful piece of property and rip off the
people they owe money to.
This amendment is a sham.
Mr. DELAHUNT. Mr. Chairman, I yield 2 minutes to the distinguished
gentleman from Pennsylvania (Mr. Kanjorski).
(Mr. KANJORSKI asked and was given permission to revise and extend
his remarks.)

{time} 1630

Mr. KANJORSKI. Mr. Chairman, I am what I classify as a moderate
Democrat, and I think that reform of bankruptcy is something that is
necessary. I think there has been an abuse in the country. I would say
some of the abusers are in the banking industry themselves, by sending
out these credit cards to people that are even in bankruptcy are
receiving credit cards.
But forgetting that, as we may, this is really a killer amendment for
me and I think a lot of moderate people who would like to support
bankruptcy. This is opening up the largest loophole in the whole
bankruptcy act.
This is saying to people, come to Florida, Texas, figure out what you
are going to do, and shelter your assets. You are saying to people in
Pennsylvania and 45 other states that will not have any great benefit
from this loophole, oh, you are going to be able to be wiped out in
bankruptcy. You can only keep $16,500 of your exemption. But if you
come to Florida, and even if you participated in fraud, abuse and theft
in the savings and loan industry, you can remain living in your $5
million mansion and you have wiped out all other creditors through
bankruptcy, because we have this exemption.
I understand we have this teetering and tottering here. We have some
people that are for states' rights and they want the ability to have
the exemption, but, on the other hand, they want to have a national
statute that makes the credit card owner pay for it. I say pox on both
our houses.
If we are going to do the fair thing, the underlying bill here gave a
$100,000 exemption. How much more do you want? How much more blood from
Pennsylvanians, from New Yorkers, from people in 45 states of this
union that want to have responsible payment of debt, but do not want
loopholes and favoritism?
I suggest, Mr. Chairman, that if you persist in this course and this
amendment wins, here is one Member who is going to vote for no for this
bill, who had been all along the support of this bill, because I think
it should move

[[Page H4406]]

through the process so we can get some reform in bankruptcy. But if I
see this type of extremity going in, I know we are not going to get the
type of reform that the constituents in my State and district could
allow.
The CHAIRMAN pro tempore. The gentleman from Pennsylvania (Mr. Gekas)
has 1 minute remaining and has the right to close, and the gentleman
from Massachusetts (Mr. Delahunt) has 30 seconds remaining.
Mr. DELAHUNT. Mr. Chairman, I yield myself 30 seconds.
Mr. Chairman, I will be very brief. I want to address the scenario
that the gentleman from Florida raised about the poor widow and her
family. The manager's amendment offered by the gentleman from Illinois
(Mr. Hyde), which I think was accepted and will receive support from
both sides of the aisle, if a creditor forced someone into involuntary
bankruptcy, the cap on the homestead exemption is automatically lifted.
I think it is very important that Members know that. We are not going
to have the kind of scenarios that were put forth by the gentleman who
has sponsored this bill, the gentleman from Florida (Mr. McCollum).
Mr. Chairman, I yield back the balance of my time.
Mr. GEKAS. I yield the balance of my time to the gentleman from Texas
(Mr. Smith).
The CHAIRMAN pro tempore (Mr. Calvert). The gentleman from Texas is
recognized for 1 minute.
Mr. SMITH of Texas. Mr. Chairman, I rise in support of the Gekas-
McCollum-Smith amendment that preserves the rights of the states to set
their own individual homestead exemptions.
H.R. 3150, the Bankruptcy Reform Act of 1998, is a necessary reform
of our Nation's bankruptcy laws. But since 1867, Federal lawmakers have
recognized the role of the states in determining what property is
exempt under bankruptcy laws. Unfortunately, the language in this bill
runs contrary to the Texas Constitution, as well as the Constitution of
several other states.
The homestead exemption was originally intended to protect families
by ensuring that if a family hit hard times, they would retain some
means of support. The need to protect families is no less important
today.
Our amendment simply preserves the right of states to provide a
homestead exemption, and maintains a historical balance between the
Federal Government and the states. It would also prevent State
homestead exemptions from being abused by prohibiting the conversion of
nonexempt assets into exempt homestead property within one year of
filing for bankruptcy. That is a protection that needs to be
emphasized.
Mr. Chairman, this amendment both prevents abuses of the exemption
and protects states' rights, and I urge my colleagues to support this
amendment.
The CHAIRMAN pro tempore. The question is on the amendment offered by
the gentleman from Pennsylvania (Mr. Gekas).
The question was taken; and the Chairman pro tempore announced that
the ayes appeared to have it.
Mr. DELAHUNT. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN pro tempore. Pursuant to House Resolution 462, further
proceedings on the amendment offered by the gentleman from Pennsylvania
(Mr. Gekas) will be postponed.
It is now in order to consider Amendment No. 9 printed in House
Report 105-573.

Amendment No. 9 Offered by Mr. Scott

Mr. SCOTT. Mr. Chairman, I offer an amendment.
The CHAIRMAN pro tempore. The Clerk will designate the amendment.
The text of the amendment is as follows.
Amendment No. 9 printed in House Report 105-573 offered by Mr. Scott:
Beginning on page 90, strike line 19 and all that follows
through line 10 on page 91 (and make such technical and
conforming changes as may be appropriate).

The CHAIRMAN pro tempore. Pursuant to House Resolution 462, the
gentleman from Virginia (Mr. Scott) and a Member opposed each will
control 5 minutes.
The Chair recognizes the gentleman from Virginia (Mr. Scott).
Mr. SCOTT. Mr. Chairman, I yield myself 2 minutes.
Mr. Chairman, this amendment would eliminate section 212 of the bill,
which singles out the recording artists for detrimental treatment to
the exclusive benefit of recording companies in regard to personal
service contracts.
Although section 212 in this bill is an improvement over its original
version, it still provides an exclusive benefit to recording companies
and still singles out recording artists for harsher treatment than
other debtors filing for bankruptcy protection. This is without any
showing that recording companies are entitled to this exclusive benefit
in bankruptcy or that artists are abusing bankruptcy laws in any way
that cannot be addressed through other provisions of bankruptcy laws
that apply to everybody else.
Furthermore, whereas approximately 1 percent of all American adults
filed for bankruptcy in 1997, according to Billboard Magazine, not even
one-tenth of 1 percent of recording artists file for bankruptcy
annually. There have been no hearings on section 212. In fact, it was
not even considered in subcommittee markup. This special interest
provision only appeared in a 177 page substitute which was first
presented at full committee consideration of the bill.
Section 212 provides a new legal standard which will penalize
recording artists for using provisions of the bankruptcy code available
without such penalty to all other debtors similarly situated. Section
2812 does not apply to actors, does not apply to athletes, doctors,
lawyers, professors, authors or anyone else who signed a personal
service contract.
No justification has been offered to explain why recording artists in
bankruptcy should be forced into continued servitude under what may be
totally unfair and unduly burdensome contracts, especially since the
contract itself may have contributed to the bankruptcy in the first
place.
I urge support for this amendment, which eliminates an unnecessary,
unfair, undesirable and, in some cases, unconscionable provision.
Mr. GEKAS. Mr. Chairman, I seek the time in opposition.
The CHAIRMAN pro tempore. The gentleman from Pennsylvania is
recognized for 5 minutes.
Mr. GEKAS. Mr. Chairman, I yield one minute to the gentleman from
Florida (Mr. McCollum).
Mr. McCOLLUM. Mr. Chairman, I thank the gentleman for yielding me
time.
Mr. Chairman, I want to oppose this amendment in the strongest of
terms. The provision that is now in this bill based on the managers'
amendment would provide a solution in a flexible manner for some very
serious problems that we have with some recording artists who have just
filed bankruptcy to get out of studio contracts. That is not right.
What we are providing in the bill that the gentleman from Virginia
(Mr. Scott) wants to strike is a provision that allows, permits, does
not require, but allows bankruptcy judges to stop recording artists'
abuse of bankruptcy laws. The underlying provision only affects artists
paid royalty advances on a promise to perform exclusively for a studio.
Under those conditions, why should anybody be allowed to file
bankruptcy, just for the purpose of getting out of a studio contract?
We may want to argue that there are other inequitable situations that
occur in contract law concerning bankruptcies. I cannot profess to
address all of them, but I can say we ought to address this one while
we have the opportunity today, and give bankruptcy judges the
discretion to decide if indeed somebody is trying to in essence defraud
the system by using bankruptcy to break these contracts in situations
where they have made a promise to perform exclusively for a studio.
Mr. Chairman, I urge a no vote in the strongest terms on the Scott
amendment to allow this to continue to happen.
Mr. SCOTT. Mr. Chairman, I yield 2\1/2\ minutes to the gentleman from
Michigan (Mr. Conyers), the ranking member of the Committee on the
Judiciary.
Mr. CONYERS. Mr. Chairman, I commend my good friend, the gentleman
from Virginia (Mr. Scott) for this amendment.
Mr. Chairman, now, how outrageous can the gentleman from Florida (Mr.
McCollum) get? Our friends in the record industry, and I am a friend of
the record industry, they go to the gentleman to sneak in this
amendment, not known to anybody until we discovered it; not a hearing,
not a word. I do

[[Page H4407]]

not know who I am more disgusted at, the gentleman or them. I guess I
will just be disgusted at both of you.
Now, why did the gentleman do it? For what reason? Section 707
protects everybody from phony filings. Everybody. Nobody in America has
this exception but your buddies in the record industry. This is a
disgrace, and I am really angry that you would try to pull this and
that my friends in the entertainment industry would pull it on me.
I hope everybody votes against this amendment. There is absolutely no
justification for it at all. Besides, it is directed at minority
artists and entertainers, who frequently get cheated out of their
earnings and have to go into bankruptcy, I would say to the gentleman
from Pennsylvania (Mr. Gekas).
So, please, have a heart.
Mr. GEKAS. Mr. Chairman, I yield one minute to the gentleman from
Tennessee (Mr. Clement).
Mr. CLEMENT. Mr. Chairman, I rise in opposition to the Scott
amendment.
Mr. Chairman, as everyone in the chamber knows, I am proud to say I
am from Nashville, Tennessee, Music City, USA, home of some of the best
music and the best artists in the world. These artists work hard to
earn their living and achieve success by virtue of their talent,
ingenuity and just plain sweat.
Unfortunately, there are some cases of unscrupulous lawyers and
agents who threaten to tarnish the reputation of many fine artists by
declaring bankruptcy for some artists as a ploy to renegotiate a new
contract. I am talking about some that have the money, but are willing
to take short cuts and want a better contract and do not live up to
their contract that they are in at the present time. That just is not
right, and it threatens to spoil the reputation of the hard-working
artists who play fairly.
Mr. Chairman, I urge my colleagues to vote against the Scott
amendment.
Mr. SCOTT. Mr. Chairman, I yield one minute to the gentleman from
Florida (Mr. Scarborough).
Mr. SCARBOROUGH. Mr. Chairman, I have heard the words ``outrageous''
and ``this is a disgrace.'' Well let me tell you what is outrageous and
is a disgrace. What is outrageous is that you will have a multimillion
dollar artist that is in the middle of a contract and decides, as I
have read in one case, does not want to make $15 million in the next
album, but they want to make $30 million on the next album so they go
to bankruptcy court, and in bankruptcy court, they try to get it thrown
out so they can go back and renegotiate a new contract and make $30
million.
Let us not talk about poor starving artists. We have documented cases
of people that are making multi-multimillions on albums, and they just
simply want to renegotiate their deal. That is outrageous. Sign a deal,
and live by the terms of that deal.
Now, I have heard also the race card has been used. If there is any
color involved in this issue, it is the color green, the color of
money, because this affects every artist, whether they are black or
white, or whether they are Hispanic, whether they are working in L.A.,
Nashville or New York. This is race neutral. It is simply saying to the
bankruptcy court, you have the discretion to decide whether somebody is
using the rules to break a valid contract. I oppose the Scott
amendment.

{time} 1645

Mr. GEKAS. Mr. Chairman, I yield 1 minute to the gentlewoman from
California (Mrs. Tauscher).
Mrs. TAUSCHER. Mr. Chairman, I rise to oppose the Scott amendment to
strike section 212 of this bill.
Under section 212 of H.R. 3150, bankruptcy judges would have the
right to deny the termination of contracts with recording artists if it
is clear that the bankruptcy filing is a ploy to end the contract. It
provides judges with the authority to prevent fraudulent filers from
using the bankruptcy system simply to advance other business
objectives.
At issue in this provision is not who is filing for bankruptcy, but
why they are filing for bankruptcy. Regardless of the circumstances,
bankruptcy judges should have the authority to prevent fraudulent
filings.
Mr. Chairman, this provision would not deny anyone access to
bankruptcy. It would not deny debtors in genuine economic stress the
ability to rehabilitate their finances, and it would not deny or not
give recording companies a preferred creditor position.
I urge my colleagues to oppose the Scott amendment and support H.R.
3150.
Mr. GEKAS. Mr. Chairman, I reserve the balance of my time.
Mr. SCOTT. Mr. Chairman, I yield myself the balance of my time.
Mr. Chairman, to the extent that debtors are denied a new contract,
other creditors are less likely to be paid. It is normal to renegotiate
contracts in bankruptcy. In fact, in our Saturday paper, a race track
in my district was in financial trouble, and the article pointed out
that, if they filed bankruptcy, they would be able to renegotiate
contracts that have put it into financial distress.
But whatever the merits of this argument, they ought to apply to
everyone. There is nothing so unique about this particular special
interest group that they should be given the advantage of section 212,
a provision stuck into the bill without a hearing. For the merits of
the argument in support of this section to make any sense, it ought to
apply to everyone; otherwise, it just looks like a special favor for
one particular special interest group, and that is why it ought it be
struck. Mr. Chairman, I hope we can support this amendment.
The CHAIRMAN pro tempore (Mr. Calvert). The gentleman from Virginia
(Mr. Scott) yields back the balance of his time.
Mr. GEKAS. Mr. Chairman, I yield to myself the balance of the time
remaining.
The CHAIRMAN pro tempore. The gentleman from Pennsylvania is
recognized for 1 minute.
Mr. GEKAS. Mr. Chairman, as I recall the negotiations that were
taking place during the time of consideration by the full committee, I
thought that the gentleman from Florida (Mr. McCollum) and the
gentleman from Virginia (Mr. Scott) had become on the verge of reaching
some compromised language. Then I learned that, indeed, they had, or at
least it looked like we had, and so that the manager's amendment did
contain some language that would seem to satisfy both sides.
Now I find out that that was not the case; therefore, we have to rely
on what is now in the manager's amendment, and we respectfully reject
the Scott amendment, and I ask everybody to vote no.
Mr. SCOTT. Mr. Chairman, will the gentleman yield?
Mr. GEKAS. I yield to the gentleman from Virginia for the remaining
time.
Mr. SCOTT. Mr. Chairman, I would acknowledge that the present version
is not as bad as what we considered in committee, but we did not reach
an agreement.
Mr. GEKAS. I know that. I know that.
Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN pro tempore. The question is on the amendment offered by
the gentleman from Virginia (Mr. Scott).
The question was taken; and the Chairman pro tempore announced that
the noes appeared to have it.
Mr. SCOTT. Mr. Chairman, I demand a recorded vote.
The CHAIRMAN pro tempore. Pursuant to House Resolution 462, further
proceedings on the amendment offered by the gentleman from Virginia
(Mr. Scott) will be postponed.
It is now in order to consider amendment number 10 printed in House
Report 105-573.

Amendment No. 10 Offered By Ms. Velazquez

Ms. VELAZQUEZ. Mr. Chairman, I offer an amendment.
The CHAIRMAN pro tempore. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 10 printed in House Report 105-573 offered by
Ms. Velazquez:
Page 110, after line 2, insert the following (and make such
technical and conforming changes as may be appropriate):

SEC. 244. STUDY OF OPERATION OF TITLE 11 OF THE UNITED STATES
CODE WITH RESPECT TO SMALL BUSINESSES.

Not later than 2 years after the date of the enactment of
this Act, the Small Business Administration, in consultation
with the Attorney General, 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--

[[Page H4408]]

(A) the internal and external factors that cause small
businesses to become debtors in cases under title 11 of the
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 can be made
more effective and efficient in assisting small businesses to
remain viable; and
(2) submit to the Speaker of the House of Representatives
and the President pro tempore of the Senate a report
summarizing such study.

The CHAIRMAN pro tempore. Pursuant to House Resolution 462, the
gentlewoman from New York (Ms. Velazquez) and a Member opposed each
will control 5 minutes.
The Chair recognizes the gentlewoman from New York (Ms. Velazquez).
Ms. VELAZQUEZ. Mr. Chairman, I yield myself such time as I may
consume.
Mr. Chairman, as we move to rewrite our Nation's bankruptcy laws, it
is important that we make the proper changes. My amendment ensures that
we have all the facts on how these revisions will affect small
business. I urge its adoption.
The purpose of my amendment is to direct the Small Business
Administrator in consultation with the Attorney General, the Director
of the Administrative Office of United States Trustees, and the
Director of the Administrative Office of the United States Courts to
conduct a study into the causes of small business bankruptcy.
This study will examine the internal and external factors that cause
small businesses to become debtors under Chapter 11. It would also
study the factors that enable viable businesses to successfully
reorganize. From these findings, the SBA will make recommendations on
how bankruptcy law can be made more effective and efficient to assist
small businesses remain viable.
Mr. Chairman, small businesses have been a critical component in the
recent upturn in our economy. They have created the vast majority of
the jobs and economic growth.
If you couple this job growth with the current explosion of
technology, where we see businesses constantly emerging and reinventing
themselves, it becomes critical that we monitor how changes to our
national bankruptcy system affect small business. More importantly,
these changes must not be allowed to dampen the entrepreneurial spirit
that our national economy relies on so heavily.
The fact remains that of the 1.4 million bankruptcies filed in 1997,
only 9,694 of Chapter 11 and 11,095 in Chapter 13 were business
related. That represents less than 1 percent of all bankruptcies.
Taking into account that over the last 10 years business bankruptcies
have actually declined, we must make sure that these trends continue.
It is true that the provisions in this legislation were taken on
recommendation from the National Bankruptcy Review Commission Report.
Unfortunately, the Commission developed these guidelines without
obtaining any statistical information. They also failed to seek the
recommendations from the Small Business Administration or the Office of
Advocacy.
We should not move forward with such drastic changes to our
bankruptcy system without the proper consultation and examination into
the issue. My amendment will ensure that all factors are properly
scrutinized. If we fail to act properly, the provisions contained in
this bill could end up doing more harm than good.
Mr. Chairman, no one will deny that our Nation is in dire need of
bankruptcy reform. What I am concerned about is that we do this in a
manner that improves our system, not make it worse. While studying how
these changes impact small business will not ensure success, it will
provide a safety net for our Nation's small business.
I urge the adoption of this amendment.
Mr. Chairman, I reserve the balance of my time.
The CHAIRMAN pro tempore. Does any Member rise in opposition?
Mr. GEKAS. Mr. Chairman, I rise in opposition only for the purpose of
claiming the time, to tell the truth.
The CHAIRMAN pro tempore. The gentleman from Pennsylvania (Mr. Gekas)
is recognized for 5 minutes.
Mr. GEKAS. Mr. Chairman, I yield myself such time as I may consume.
(The gentleman from Pennsylvania spoke in Spanish.)
Ms. VELAZQUEZ. (The gentlewoman from New York spoke in Spanish.)
Mr. GEKAS. (The gentleman from Pennsylvania spoke in Spanish.)
We will accept the amendment as offered by the gentlewoman from New
York in both English and Spanish.
Mr. Chairman, I yield back the balance of my time.
Ms. VELAZQUEZ. Mr. Chairman, I thank the gentleman from Pennsylvania
for supporting my amendment.
Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN pro tempore. The question is on the amendment offered by
the gentlewoman from New York (Ms. Velazquez).
The amendment was agreed to.
The CHAIRMAN pro tempore. It is now in order to consider amendment
No. 11 printed in House Report 105-573.

Amendment No. 11 Offered By Mr. Baldacci

Mr. BALDACCI. Mr. Chairman, I offer an amendment.
The CHAIRMAN pro tempore. The Clerk will designate the amendment.
The text of the amendment is as follows:

Amendment No. 11 printed in House Report 105-573 offered by
Mr. Baldacci:
Page 131, after line 7, insert the following:

SEC. 414. STUDY OF BANKRUPTCY IMPACT OF CREDIT EXTENDED TO
DEPENDENT STUDENTS.

Not later than 1 year after the date of the enactment of
this Act, the Comptroller General of the United States
shall--
(1) conduct a study regarding the impact that 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 post-secondary educational institutions;
has on the rate of cases filed under title 11 of the United
States Code; and
(2) submit to the Speaker of the House of Representatives
and the President pro tempore of the Senate a report
summarizing such study.

The CHAIRMAN pro tempore. Pursuant to House Resolution 462, the
gentleman from Maine (Mr. Baldacci) and a Member opposed each will
control 5 minutes.
The Chair recognizes the gentleman from Maine (Mr. Baldacci).
Mr. BALDACCI. Mr. Chairman, I yield myself such time as I may
consume.
Mr. Chairman, I rise to offer my student credit study amendment to
bankruptcy reform legislation we are considering today.
My amendment directs the Comptroller General to conduct a study on
the impact of the Nation's bankruptcy rate of the extension of credit
to students enrolled in postsecondary education programs who are
claimed as dependents for tax purposes by their parents or legal
guardians.
The intent of my amendment is to compile information on the impact
the extension of credit may have on families when it is extended to
dependent students in college or trade school when they may have little
or no income with which to pay debts from occurred through credit
cards.
Again, I am not talking about students who are, for all intents and
purposes on their own, financially independent, but those who are
claimed as dependents by their parents for tax purposes.
I have received numerous inquiries from constituents who have
expressed concern about the seemingly haphazard extension of credit to
students who have no visible means of support, other than that of their
family.
Some of you have seen the ``Dear Colleague'' sent out by the
gentleman from Massachusetts (Mr. Delahunt) yesterday. Apparently, his
college-aged daughter was sent an offer of credit in the form of a
check for $2,875. That kind of money can be hard to resist for some
students. You are away from home. Lots of strange new faces and very
little cash. Those of you who are parents will probably understand
where I am going with this.
I think the majority of students would be intelligent, responsible
young adults. However, the temptation for some students to take on more
debt than they could reasonably handle would be strong in some of these
situations. As a dependent, your parents

[[Page H4409]]

may feel a moral obligation to pay that debt. I think it is incumbent
upon us to see if this is in fact a problem and the extent to which it
effects American families.
Having said that, Mr. Chairman, I would urge the adoption of the
amendment that I have offered.
Mr. Chairman, I reserve the balance of my time.
The CHAIRMAN pro tempore. Does any Member rise this opposition to the
amendment?
Mr. GEKAS. Mr. Chairman, I rise in opposition only for the purpose of
claiming the time.
The CHAIRMAN pro tempore. The gentleman from Pennsylvania (Mr. Gekas)
is recognized for 5 minutes.
Mr. GEKAS. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I want to be intellectually honest about that, maybe
for the first time in my career, but anyway, I agree with the concept
that has been advanced by the gentleman from Maine and would urge a yes
vote on his amendment.
The CHAIRMAN pro tempore. The question is on the amendment offered by
the gentleman from Maine (Mr. Baldacci).
The amendment was agreed to.
The CHAIRMAN pro tempore. It is now in order to consider Amendment
No. 12 printed in House Report 105-573.

Amendment In The Nature Of A Substitute No. 12 Offered By Mr. Nadler

Mr. NADLER. Mr. Chairman, I offer an amendment in the nature of a
substitute.
The CHAIRMAN pro tempore. The Clerk will designate the amendment in
the nature of a substitute.
The text of the amendment of the nature of a substitute is as
follows:

Amendment in the nature of a substitute No. 12 printed in
House Report 105-573 offered by Mr. Nadler:
Strike all after the enacting clause and insert the
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Bankruptcy
Reform Act of 1998''.
(b) Table of Contents.--The table of contents of this Act
is as follows:

Sec. 1. Short title; table of contents.

TITLE I--CONSUMER BANKRUPTCY PROVISIONS

Subtitle A--Needs-Based Bankruptcy

Sec. 101. Dismissal or conversion of a chapter 7 case.
Sec. 102. Debtor participation in credit counseling program.

Subtitle B--Adequate Protections for Consumers

Sec. 111. Notice of alternatives.
Sec. 112. Debtor financial management training test program.
Sec. 113. Definitions.
Sec. 114. Disclosures.
Sec. 115. Debtor's bill of rights.
Sec. 116. Enforcement.
Sec. 117. Sense of the Congress.
Sec. 118. Charitable contributions.
Sec. 119. Reinforce the fresh start.
Sec. 119A. Chapter 11 discharge of debts arising from tobacco-related
debts.

Subtitle C--Adequate Protections for Secured Creditors

Sec. 121. Discouraging bad faith repeat filings.
Sec. 122. Definition of household goods.
Sec. 123. Debtor retention of personal property security.
Sec. 124. Relief from stay when the debtor does not complete intended
surrender of consumer debt collateral.
Sec. 125. Giving secured creditors fair treatment in chapter 13.
Sec. 126. Prompt relief from stay in individual cases.
Sec. 127. Stopping abusive conversions from chapter 13.
Sec. 128. Restraining abusive purchases on secured credit.
Sec. 129. Fair valuation of collateral.
Sec. 130. Protection of holders of claims secured by debtor's principal
residence.
Sec. 131. Aircraft equipment and vessels.

Subtitle D--Adequate Protections for Unsecured Creditors

Sec. 141. Fraudulent debts are nondischargeable in chapter 13 cases.
Sec. 142. Applying the codebtor stay only when it protects the debtor.
Sec. 143. Nondischargeability of certain debts for alimony,
maintenance, and support.
Sec. 144. Other exceptions to discharge.
Sec. 145. Fees arising from certain ownership interests.
Sec. 146. Adequate protection for investors.
Sec. 147. Super-priority for child and spousal support claims.
Sec. 148. Debts for alimony, maintenance, and support.
Sec. 149. Protection of child support and alimony.

Subtitle E--Adequate Protections for Lessors

Sec. 161. Giving debtors the ability to keep leased personal property
by assumption.

Subtitle F--Bankruptcy Relief Less Frequently Available for Repeat
Filers

Sec. 171. Extend period between bankruptcy discharges.

Subtitle G--Exemptions

Sec. 181. Exemptions.
Sec. 182. Limitation.
Sec. 183. Provide fair property exemptions and prevent high-rollers
from abusing the system.

TITLE II--BUSINESS BANKRUPTCY PROVISIONS

Subtitle A--General Provisions

Sec. 201. Limitation relating to the use of fee examiners.
Sec. 202. Sharing of compensation.
Sec. 203. Chapter 12 made permanent law.
Sec. 204. Meetings of creditors and equity security holders.
Sec. 205. Creditors' and equity security holders' committees.
Sec. 206. Postpetition disclosure and solicitation.
Sec. 207. Preferences.
Sec. 208. Venue of certain proceedings.
Sec. 209. Cases ancillary to foreign proceedings involving foreign
insurance companies that are engaged in the business of
insurance or reinsurance in the United States.
Sec. 210. Period for filing plan under chapter 11.
Sec. 211. Unexpired leases of nonresidential real property.
Sec. 212. Definition of disinterested person.

Chapter 1--Small Business Bankruptcy

Sec. 231. Definitions.
Sec. 232. Flexible rules for disclosure statement and plan.
Sec. 233. Standard form disclosure statements and plans.
Sec. 234. Uniform national reporting requirements.
Sec. 235. Uniform reporting rules and forms.
Sec. 236. Duties in small business cases.
Sec. 237. Plan filing and confirmation deadlines.
Sec. 238. Plan confirmation deadline.
Sec. 239. Prohibition against extension of time.
Sec. 240. Duties of the United States trustee and bankruptcy
administrator.
Sec. 241. Scheduling conferences.
Sec. 242. Serial filer provisions.
Sec. 243. Expanded grounds for dismissal or conversion and appointment
of trustee.

Chapter 2--Single Asset Real Estate

Sec. 251. Single asset real estate defined.
Sec. 252. Payment of interest.

Chapter 3--Conditional Application of Amendments

Sec. 291. Loss of jobs.

TITLE III--MUNICIPAL BANKRUPTCY PROVISIONS

Sec. 301. Petition and proceedings related to petition.
Sec. 302. Applicability of other sections to chapter 9.

TITLE IV--BANKRUPTCY ADMINISTRATION

Subtitle A--General Provisions

Sec. 401. Adequate preparation time for creditors before the meeting of
creditors in individual cases.
Sec. 402. Creditor representation at first meeting of creditors.
Sec. 403. Filing proofs of claim.
Sec. 404. Audit procedures.
Sec. 405. Giving creditors fair notice in chapter 7 and 13 cases.
Sec. 406. Debtor to provide tax returns and other information.
Sec. 407. Dismissal for failure to file schedules timely or provide
required information.
Sec. 408. Adequate time to prepare for hearing on confirmation of the
plan.
Sec. 409. Sense of the Congress regarding expansion of rule 9011 of the
Federal rules of bankruptcy procedure.
Sec. 410. Jurisdiction of courts of appeals.
Sec. 411. Establishment of official forms.
Sec. 412. Elimination of certain fees payable in chapter 11 bankruptcy
cases.

Subtitle B--Data Provisions

Sec. 441. Improved bankruptcy statistics.
Sec. 442. Bankruptcy data.
Sec. 443. Sense of the Congress regarding availability of bankruptcy
data.

TITLE V--TAX PROVISIONS

Sec. 501. Treatment of certain liens.
Sec. 502. Enforcement of child and spousal support.
Sec. 503. Effective notice to Government.
Sec. 504. Notice of request for a determination of taxes.
Sec. 505. Rate of interest on tax claims.
Sec. 506. Tolling of priority of tax claim time periods.
Sec. 507. Assessment defined.
Sec. 508. Chapter 13 discharge of fraudulent and other taxes.
Sec. 509. Chapter 11 discharge of fraudulent taxes.
Sec. 510. The stay of tax proceedings.
Sec. 511. Periodic payment of taxes in chapter 11 cases.
Sec. 512. The avoidance of statutory tax liens prohibited.
Sec. 513. Payment of taxes in the conduct of business.

[[Page H4410]]

Sec. 514. Tardily filed priority tax claims.
Sec. 515. Income tax returns prepared by tax authorities.
Sec. 516. The discharge of the estate's liability for unpaid taxes.
Sec. 517. Requirement to file tax returns to confirm chapter 13 plans.
Sec. 518. Standards for tax disclosure.
Sec. 519. Setoff of tax refunds.

TITLE VI--ANCILLARY AND OTHER CROSS-BORDER CASES

Sec. 601. Amendment to add a chapter 6 to title 11, United States Code.
Sec. 602. Amendments to other chapters in title 11, United States Code.

TITLE VII--MISCELLANEOUS

Sec. 701. Technical amendments.
Sec. 702. Application of amendments.

TITLE I--CONSUMER BANKRUPTCY PROVISIONS

Subtitle A--Needs-Based Bankruptcy

SEC. 101. DISMISSAL OR CONVERSION OF A CHAPTER 7 CASE.

(a) Amendments to Chapter 7.--Section 707 of title 11,
United States Code, is amended--
(1) by amending the heading to read as follows:

``Sec. 707 Dismissal or conversion of case'';

(2) by amending subsection (b) to read as follows:
``(b)(1) In a case filed by an individual debtor who has
regular income and whose debts are primarily consumer debts,
the court--
``(A) on its own motion, or on a motion by the United
States trustee or the trustee; or
``(B) on a motion filed by a party in interest, if the
household income with respect to the debtor during the 1-year
period ending on the date the case is commenced exceeds the
sum of $60,000 and $5,000 for each household member exceeding
4, adjusted to reflect the change in the Consumer Price Index
for All Urban Consumers, published by the Department of
Labor, for the period beginning on the 1st January 1
occurring after the effective date of this subparagraph and
ending immediately before the most recent January 1 occurring
before the commencement of the case;

and after notice and a hearing, shall dismiss the case, or
convert the case with the consent of the debtor to a case
under another chapter of this title, if the court finds that
granting relief would be an abuse of the provisions of this
chapter.
``(2) For purposes of paragraph (1)--
``(A) `an abuse of the provisions of this chapter' means
that--
``(i)(I) the debtor has, and is expected to have,
disposable income that is sufficient, after paying allowed
claims (whether secured or unsecured) for a debt secured only
by the principal residence of the debtor, allowed secured
claims, claims that have priority under section 507 of this
title, allowed unsecured claims arising under not more than 1
motor vehicle lease in effect on the date the case is
commenced, and debts arising in the 3-year period beginning
on such date under not more than 1 motor vehicle lease in
effect on the such date, to pay during such 3-year period not
less than 30 percent of the aggregate amount of the remaining
allowed unsecured claims; and
``(II) household income received with respect to the debtor
during the 1-year period ending on the date the case is
commenced exceeds the sum of $40,000 and $5,000 for each
household member exceeding 2, adjusted to reflect the change
in the Consumer Price Index for All Urban Consumers,
published by the Department of Labor, for the period
beginning on the 1st January 1 occurring after the effective
date of this subparagraph and ending immediately before the
most recent January 1 occurring before the commencement of
the case; or
``(ii) the debtor commenced a case under this chapter, or
converted a case to a case under this chapter, in bad faith;
``(B) `disposable income' means income that is received by
the debtor and that is not reasonably necessary to be
expended for the maintenance or support of the debtor or a
dependent of the debtor;
``(C) `household income' means--
``(i) in an individual case, the sum of--
``(I) the debtor's income; and
``(II) the income of any other household member of the
debtor; and
``(ii) in a joint case, the sum of--
``(I) the debtor's income;
``(II) the income of the debtor's spouse; and
``(III) the income of any other household member of the
debtor or of the debtor's spouse;
``(D) `household member' means--
``(i) the debtor;
``(ii) the debtor's spouse if the debtor's spouse maintains
a common principal residence with the debtor on the date the
case is commenced; or
``(iii) a relative (by affinity, consanguinity, or
adoption) of the debtor or the debtor's spouse who--
``(I) maintains a common principal residence with the
debtor on the date the case is commenced; and
``(II) is dependent on the debtor, or on the debtors'
spouse if the debtor's spouse maintains a common principal
residence with the debtor on the date the case is commenced,
for substantially all financial support during the 180-day
period ending on the date the case is commenced.
``(3) Except as provided in paragraph (2)(C), this
subsection shall apply jointly to debtors in a joint case.'';
and
(3) by adding at the end the following:
``(c) If the court denies a motion filed under this section
by a party in interest, the court shall award to the debtor--
``(1) costs and a reasonable attorney's fee incurred by the
debtor to oppose the motion; and
``(2) damages of not less than $5000;

unless the position of such party in interest is
substantially justified.''.

SEC. 102. DEBTOR PARTICIPATION IN CREDIT COUNSELING PROGRAM.

(a) Who May Be a Debtor.--Section 109 of title 11, United
States Code is amended by adding at the end the following:
``(i)(1) Subject to paragraph (2) and notwithstanding any
other provision of this section, an individual may not be a
debtor under this title unless such individual has, during
the 90-day period preceding the date of filing of the
petition, made a good-faith attempt to create a debt
repayment plan outside the judicial system for bankruptcy law
(commonly referred to as the `bankruptcy system'), through a
credit counseling program offered through credit counseling
services described in section 342(b)(2) that has been
approved by--
``(A) the United States trustee; or
``(B) the bankruptcy administrator for the district in
which the petition is filed.
``(2) The United States trustee or bankruptcy administrator
may not approve a program for inclusion on the list under
paragraph (1) unless the counseling service offering the
program offers the program without charge, or at an
appropriately reduced charge, if payment of the regular
charge would impose a hardship on the debtor or the debtor's
dependents.
``(3) The United States trustee or bankruptcy administrator
shall designate any geographical areas in the United States
trustee region or judicial district, as the case may be, as
to which the United States trustee or bankruptcy
administrator has determined that credit counseling services
needed to comply with this subsection are not available or
are too geographically remote for debtors residing within the
designated geographical areas. The clerk of the bankruptcy
court for each judicial district shall maintain a list of the
designated areas within the district.
``(4) The clerk shall exclude a particular counseling
service from the list maintained under section 342(b)(2) of
this title if the United States trustee or bankruptcy
administrator orders that the counseling service not be
included in the list.
``(5) The court may waive the requirement specified in
paragraph (1) if--
``(A) no credit counseling services are available as
designated under paragraphs (2) and (3);
``(B) the providers of credit counseling services available
in the district are unable or unwilling to provide such
services to the debtor in a timely manner; or
``(C) foreclosure, garnishment, attachment, eviction, levy
of execution, utility termination, repossession, or similar
claim enforcement procedure that would have deprived the
individual of property had commenced or threatened to
commence before the debtor could complete a good-faith
attempt to create such a repayment plan.
``(6) A debtor who is subject to the exemption under
paragraph (5)(C) shall be required to make a good-faith
attempt to create a debt repayment plan outside the judicial
system in the manner prescribed in paragraph (1) during the
30-day period beginning on the date of filing of the petition
of that debtor.
``(7) A debtor shall be exempted from the bad faith
presumption for repeat filing under section 362(c) of title
11 if the case is dismissed due to the creation of a debt
repayment plan.
``(8) Only the United States trustee may make a motion for
dismissal on the ground that the debtor did not comply with
this subsection.''.
(b) Debtor's Duties.--Section 521 of title 11, United
States Code, as amended by sections 406 and 407, is amended
by adding at the end the following:
``(g)(1) In addition to the requirements under subsection
(a), an individual debtor shall file with the court--
``(A) a certificate from the credit counseling services
that provided the debtor services under section 109(i), or a
verified statement as to why such attempt was not required
under section 109(i) or other substantial evidence of a good-
faith attempt to create a debt repayment plan outside the
bankruptcy system in the manner prescribed in section 109(i);
and
``(B) a copy of the debt repayment plan, if any, developed
under section 109(i) through the credit counseling service
referred to in paragraph (1).
``(2) Only the United States trustee may make a motion for
dismissal on the ground that the debtor did not comply with
this subsection.''.

Subtitle B--Adequate Protections for Consumers

SEC. 111. NOTICE OF ALTERNATIVES.

(a) 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,
the individual shall be given or obtain (as required to be
certified under section 521(a)(1)(B)(viii)) a written notice
that is prescribed by the United States trustee for the
district in which the petition is filed pursuant to section
586 of title 28 and that contains the following:

[[Page H4411]]

``(A) A brief description of chapters 7, 11, 12 and 13 of
this title and the general purpose, benefits, and costs of
proceeding under each of such chapters.
``(B) A brief description of services that may be available
to the individual from an independent nonprofit debt
counselling service.
``(C) The name, address, and telephone number of each
nonprofit debt counselling service (if any)--
``(i)(I)with an office located in the district in which the
petition is filed; or
``(ii)(II) that offers toll-free telephone communication to
debtors in such district; and
``(ii) that provides such service without charge or on an
appropriate reduced fee basis.
``(2) Any such nonprofit debt counselling service that
registers with the clerk of the bankruptcy court on or before
December 10 of the preceding year shall be included in such
list unless the chief bankruptcy judge of the district, after
notice to the debt counselling service and the United States
trustee and opportunity for a hearing, for good cause, orders
that such debt counselling service shall not be so listed.
``(3) The clerk shall make such notice available to
individuals whose debts are primarily consumer debts.
``(4) The United States trustee may file a motion with the
bankruptcy court to request the removal of any debt
counseling service from such list.''.
(b) Section 586(a) of title 28, 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) on or before January 1 of each calendar year, and
also within 30 days of any change in the nonprofit debt
counselling services registered with the bankruptcy court,
prescribe and make available on request the notice described
in section 342(b)(1) of title 11 for each district included
in the region.''.

SEC. 112. 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 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 of the United States Code and who operate financial
management education programs for debtors, and shall develop
a financial management training curriculum and materials that
can be used to educate individual debtors on how to better
manage their finances.
(b) Test--(1) 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) For a 1-year period beginning not later than 180 days
after the date of the enactment of this Act, such curriculum
and materials shall be made available by the Director,
directly or indirectly, on request to individual debtors in
cases filed in such 1-year period under chapter 7 or 13 of
title 11 of the United States Code.
(3) The bankruptcy courts in each of such districts may
require individual debtors in such cases to undergo such
financial management training as a condition to receiving a
discharge in such case.
(c) Evaluation.--(1) 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 (October 20, 1997) that are representative
of consumer education programs carried out by the credit
industry, by trustees serving under chapter 13 of title 11 of
the United States Code, and by consumer counselling groups.
(2) Not later than 3 months after concluding such
evaluation, 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
the Congress, containing the findings of the Director
regarding the effectiveness of such curriculum, such
materials, and such programs.

SEC. 113. DEFINITIONS.

(a) Definitions.--Section 101 of title 11, United States
Code, is amended--
(1) by inserting after paragraph (3) the following:
``(3A) `assisted person' means any person whose debts
consist primarily of consumer debts and whose non-exempt
assets are less than $150,000;'';
(2) by inserting after paragraph (4) the following:
``(4A) `bankruptcy assistance' means any goods or services
sold or otherwise provided to an assisted person with the
express or implied purpose of providing information, advice,
counsel, document preparation or filing, or attendance at a
creditors' meeting or appearing in a proceeding on behalf of
another or providing legal representation with respect to a
proceeding under this title;''; and
(3) by inserting after paragraph (12A) the following:
``(12B) `debt relief counselling agency' means any person
who provides any bankruptcy assistance to an assisted person
in return for the payment of money or other valuable
consideration, or who is a bankruptcy petition preparer
pursuant to section 110 of this title, but does not include
any person that is any of the following or an officer,
director, employee or agent thereof--
``(A) any nonprofit organization which is exempt from
taxation under section 501(c)(3) of the Internal Revenue Code
of 1986;
``(B) any creditor of the person to the extent the creditor
is assisting the person to restructure any debt owed by the
person to the creditor; or
``(C) any depository institution (as defined in section 3
of the Federal Deposit Insurance Act) or any Federal credit
union or State credit union (as those terms are defined in
section 101 of the Federal Credit Union Act), or any
affiliate or subsidiary of such a depository institution or
credit union;''.
(b) Conforming Amendment.--In section 104(b)(1) by
inserting ``101(3),'' after ``sections''.

SEC. 114. DISCLOSURES.

(a) Disclosures.--Subchapter II of chapter 5 of title 11,
United States Code, is amended by adding at the end the
following:

``Sec. 526. Disclosures

``(a) A debt relief counselling agency providing bankruptcy
assistance to an assisted person shall provide the following
notices to the assisted person:
``(1) the written notice required under section 342(b)(1)
of this title; and
``(2) to the extent not covered in the written notice
described in paragraph (1) of this section and no later than
three business days after the first date on which a debt
relief counselling agency first offers to provide any
bankruptcy assistance services to an assisted person, a clear
and conspicuous written notice advising assisted persons of
the following--
``(A) all information the assisted person is required to
provide with a petition and thereafter during a case under
this title must be complete, accurate and truthful;
``(B) all assets and all liabilities must be completely and
accurately disclosed in the documents filed to commence the
case, and the value of each asset as defined in section 506
of this title must be stated in those documents where
requested after reasonable inquiry to establish such value;
``(C) household income, and, in a chapter 13 case,
disposable income, must be stated after reasonable inquiry;
and
``(D) that information an assisted person provides during
their case may be audited pursuant to this title and that
failure to provide such information may result in dismissal
of the proceeding under this title or other sanction
including, in some instances, criminal sanctions.
``(b) A debt relief counselling agency providing bankruptcy
assistance to an assisted person shall provide each assisted
person at the same time as the notices required under
subsection (a)(1) with the following statement, to the extent
applicable, or one substantially similar. The statement shall
be clear and conspicuous and shall be in a single document
separate from other documents or notices provided to the
assisted person:
`` `IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE
SERVICES FROM AN ATTORNEY OR BANKRUPTCY PETITION PREPARER
`` `If you decide to seek bankruptcy relief, you can
represent yourself, you can hire an attorney to represent
you, or you can get help in some localities from a bankruptcy
petition preparer who is not an attorney. THE LAW REQUIRES AN
ATTORNEY OR BANKRUPTCY PETITION PREPARER TO GIVE YOU A
WRITTEN CONTRACT SPECIFYING WHAT THE ATTORNEY OR BANKRUPTCY
PETITION PREPARER WILL DO FOR YOU AND HOW MUCH IT WILL COST.
Ask to see the contract before you hire anyone.
`` `The following information helps you understand what
must be done in a routine bankruptcy case to help you
evaluate how much service you need. Although bankruptcy can
be complex, many cases are routine.
`` `Before filing a bankruptcy case, either you or your
attorney should analyze your eligibility for different forms
of debt relief made available by the Bankruptcy Code and
which form of relief is most likely to be beneficial for you.
Be sure you understand the relief you can obtain and its
limitations. To file a bankruptcy case, documents called a
Petition, Schedules and Statement of Financial Affairs, as
well as in some cases a Statement of Intention need to be
prepared correctly and filed with the bankruptcy court. You
will have to pay a filing fee to the bankruptcy court. Once
your case starts, you will have to attend the required first
meeting of creditors where you may be questioned by a court
official called a ``trustee'' and by creditors.
`` `If you select a chapter 7 proceeding, you may be asked
by a creditor to reaffirm a debt. You may want help deciding
whether to do so.
`` `If you select a chapter 13 proceeding in which you
repay your creditors what you can afford over three to seven
years, you may also want help with preparing your chapter 13
plan and with the confirmation hearing on your plan which
will be before a bankruptcy judge.'
`` `If you select another type of proceeding under the
Bankruptcy Code other than chapter 7 or chapter 13, you will
want to find out

[[Page H4412]]

what needs to be done from someone familiar with that type of
proceeding.
`` `Your bankruptcy proceeding may also involve litigation.
You are generally permitted to represent yourself in
litigation in bankruptcy court, but only attorneys, not
bankruptcy petition preparers, can represent you in
litigation.'.
``(c) Except to the extent the debt relief counselling
agency provides the required information itself after
reasonably diligent inquiry of the assisted person or others
so as to obtain such information reasonably accurately for
inclusion on the petition, schedules or statement of
financial affairs, a debt relief counselling agency providing
bankruptcy assistance to an assisted person, to the extent
authorized by applicable nonbankruptcy law, shall provide
each assisted person at the time required for the notice
required under subsection (a)(1) reasonably sufficient
information (which may be provided orally or in a clear and
conspicuous writing) to the assisted person on how to provide
all the information the assisted person is required to
provide under this title pursuant to section 521, including--
``(1) how to value assets at replacement value, determine
household income and, in a chapter 13 case, disposable
income, and related calculations;
``(2) how to complete the list of creditors, including how
to determine what amount is owed and what address for the
creditor should be shown;
``(3) how to determine what property is exempt and how to
value exempt property as defined in section 506 of this
title; and
``(4) a clear and conspicuous statement that an employee of
such service may not provide legal advice unless such
employee is an attorney.
``(d) A debt relief counselling agency shall maintain a
copy of the notices required under subsection (a) of this
section for two years after the later of the date on which
the notice is given the assisted person.''.
(b) Conforming Amendment.--The table of section for chapter
5 of title 11, United States Code, is amended by inserting
after the item relating to section 525 the following:

``526. Disclosures.''.

SEC. 115. DEBTOR'S BILL OF RIGHTS.

(a) Debtor's Bill of Rights.--Subchapter II of chapter 5 of
title 11, United States Code, as amended by section 114, is
amended by adding at the end the following:

``Sec. 527. Debtor's bill of rights

``(a) A debt relief counselling agency shall--
``(1) no later than three business days after the first
date on which a debt relief counselling agency provides any
bankruptcy assistance services to an assisted person, execute
a written contract with the assisted person specifying
clearly and conspicuously the services the agency will
provide the assisted person and the basis on which fees or
charges will be made for such services and the terms of
payment, and give the assisted person a copy of the fully
executed and completed contract in a form the person can
keep;
``(2) disclose in any advertisement of bankruptcy
assistance services or of the benefits of bankruptcy directed
to the general public (whether in general media, seminars or
specific mailings, telephonic or electronic messages or
otherwise) that the services or benefits are with respect to
proceedings under this title, clearly and conspicuously using
the following statement: `We are a debt relief counselling
agency. We help people file Bankruptcy petitions to obtain
relief under the Bankruptcy Code.' or a substantially similar
statement. An advertisement shall be of bankruptcy assistance
services if it describes or offers bankruptcy assistance with
a chapter 13 plan, regardless of whether chapter 13 is
specifically mentioned, including such statements as
`federally supervised repayment plan' or `Federal debt
restructuring help' or other similar statements which would
lead a reasonable consumer to believe that help with debts
was being offered when in fact in most cases the help
available is bankruptcy assistance with a chapter 13 plan;
and
``(3) if an advertisement directed to the general public
indicates that the debt relief counselling agency provides
assistance with respect to credit defaults, mortgage
foreclosures, lease eviction proceedings, excessive debt,
debt collection pressure, or inability to pay any consumer
debt, disclose conspicuously in that advertisement that the
assistance is with respect to or may involve proceedings
under this title, using the following statement: ``We are a
debt relief counselling agency. We help people file
Bankruptcy petitions to obtain relief under the Bankruptcy
Code.'' or a substantially similar statement.
``(b) A debt relief counselling agency shall not--
``(1) fail to perform any service which the debt relief
counseling agency has told the assisted person or prospective
assisted person the agency would provide that person in
connection with the preparation for or activities during a
proceeding under this title;
``(2) make any statement, or counsel or advise any assisted
person to make any statement in any document filed in a
proceeding under this title, which is untrue or misleading
and which upon the exercise of reasonable care, should be
known by the debt relief counselling agency to be untrue or
misleading;
``(3) misrepresent to any assisted person or prospective
assisted person, directly or indirectly, affirmatively or by
material omission, what services the debt relief counselling
agency can reasonably expect to provide that person, or the
benefits an assisted person may obtain or the difficulties
the person may experience if the person seeks relief in a
proceeding pursuant to this title; or
``(4) advise an assisted person or prospective assisted
person to incur more debt in contemplation of that person
filing a proceeding under this title or in order to pay an
attorney or bankruptcy petition preparer fee or charge for
services performed as part of preparing for or representing a
debtor in a proceeding under this title.''.
(b) Conforming Amendment.--The table of section for chapter
5 of title 11, United States Code, as amended by section 114,
is amended by inserting after the item relating to section
526, the following:

``527. Debtor's bill of rights.''.

SEC. 116. ENFORCEMENT.

(a) Enforcement.--Subchapter II of chapter 5 of title 11,
United States Code, as amended by sections 114 and 115, is
amended by adding at the end the following:

``Sec. 528. Debt relief counselling agency enforcement

``(a) Assisted Person Waivers Invalid.--Any waiver by any
assisted person of any protection or right provided by or
under section 526 or 527 of this title shall be void and may
not be enforced by any Federal or State court or any other
person.
``(b) Noncompliance.--
``(1) Any contract between a debt relief counselling agency
and an assisted person for bankruptcy assistance which does
not comply with the requirements of section 526 or 527 of
this title shall be treated as void and may not be enforced
by any Federal or State court or by any other person.
``(2) Any debt relief counselling agency which has been
found, after notice and hearing, to have--
``(A) failed to comply with any provision of section 526 or
527 with respect to a bankruptcy case or related proceeding
of an assisted person; or
``(B) negligently or intentionally disregarded the
requirements of this title or the Federal Rules of Bankruptcy
Procedure applicable to such debt relief counselling agency
shall be liable to the assisted person in the amount of any
fees and charges in connection with providing bankruptcy
assistance to such person which the debt relief counselling
agency has already been paid on account of that proceeding
and if the case has not been closed, the court may in
addition require the debt relief counselling agency to
continue to provide bankruptcy assistance services in the
pending case to the assisted person without further fee or
charge or upon such other terms as the court may order.
``(3) In addition to such other remedies as are provided
under State law, whenever the chief law enforcement officer
of a State, or an official or agency designated by a State,
has reason to believe that any person has violated or is
violating section 526 or 527 of this title, the State--
``(A) may bring an action to enjoin such violation;
``(B) may bring an action on behalf of its residents to
recover the actual damages of assisted persons arising from
such violation, including any liability under paragraph (2);
and
``(C) in the case of any successful action under
subparagraph (A) or (B), shall be awarded the costs of the
action and reasonable attorney fees as determined by the
court.
``(4) The United States District Court for any district
located in the State shall have concurrent jurisdiction of
any action under subparagraph (A) or (B) of paragraph (3).
``(5) The rights and remedies provided in this section are
in addition to any rights and remedies provided under any
other provision of Federal law.
``(c) Relation to State Law.--This section and sections 526
and 527 shall not annul, alter, affect or exempt any person
subject to those sections from complying with any law of any
State.''.
(b) Conforming Amendment.--The table of section for chapter
5 of title 11, United States Code, as amended by sections 114
and 115, is amended by inserting after the item relating to
section 527, the following:

``528. Debt relief counselling agency enforcement.''.

SEC. 117. SENSE OF THE CONGRESS.

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

SEC. 118. CHARITABLE CONTRIBUTIONS.

(a) Definitions.--Section 548(d) of title 11, United States
Code, is amended by adding at the end the following:
``(3) In this section, the term `charitable contribution'
means a charitable contribution, as that term is defined in
section 170(c) of the Internal Revenue Code of 1986, if that
contribution--
``(A) is made by a natural person; and
``(B) consists of--
``(i) a financial instrument (as that term is defined in
section 731(c)(2)(C) of the Internal Revenue Code of 1986);
or
``(ii) cash.
``(4) In this section, the term `qualified religious or
charitable entity or organization' means--
``(A) an entity described in section 170(c)(1) of the
Internal Revenue Code of 1986; or

[[Page H4413]]

``(B) an entity or organization described in section
170(c)(2) of the Internal Revenue Code of 1986.''.
(b) Treatment of Prepetition Qualified Charitable
Contributions.--
(1) In general.--Section 548(a) of title 11, United States
Code, is amended--
(A) by inserting ``(1)'' after ``(a)'';
(B) by striking ``(1) made'' and inserting ``(A) made'';
(C) by striking ``(2)(A)'' and inserting ``(B)(i)'';
(D) by striking ``(B)(i)'' and inserting ``(ii)(I)'';
(E) by striking ``(ii) was'' and inserting ``(II) was'';
(F) by striking ``(iii)'' and inserting ``(III)''; and
(G) by adding at the end the following:
``(2) A transfer of a charitable contribution to a
qualified religious or charitable entity or organization
shall not be considered to be a transfer covered under
paragraph (1)(B) in any case in which--
``(A) the aggregate annual amount of all contributions to
qualified religious or charitable entities or organizations
does not exceed 15 percent of the gross annual income of the
debtor for the year in which the transfer of the contribution
is made; or
``(B) the contribution made by a debtor exceeded the
maximum amount specified in subparagraph (A), but the
transfer was consistent with the practices of the debtor in
making charitable contributions.''.
(2) Trustee as lien creditor and as successor to certain
creditors and purchasers.--Section 544(b) of title 11, United
States Code, is amended--
(A) by striking ``(b) The trustee'' and inserting ``(b)(1)
Except as provided in paragraph (2), the trustee''; and
(B) by adding at the end the following:
``(2) Paragraph (1) shall not apply to a transfer of a
charitable contribution (as that term is defined in section
548(d)(3)) that is not covered under section 548(a)(1)(B), by
reason of section 548(a)(2). Any claim by any person to
recover a transferred contribution described in the preceding
sentence under Federal or State law in a Federal or State
court shall be preempted by the commencement of the case.''.
(3) Conforming amendments.--Section 546 of title 11, United
States Code, is amended--
(A) in subsection (e)--
(i) by striking ``548(a)(2)'' and inserting
``548(a)(1)(B)''; and
(ii) by striking ``548(a)(1)'' and inserting
``548(a)(1)(A)'';
(B) in subsection (f)--
(i) by striking ``548(a)(2)'' and inserting
``548(a)(1)(B)''; and
(ii) by striking ``548(a)(1)'' and inserting
``548(a)(1)(A)''; and
(C) in subsection (g)--
(i) by striking ``section 548(a)(1)'' each place it appears
and inserting ``section 548(a)(1)(A)''; and
(ii) by striking ``548(a)(2)'' and inserting
``548(a)(1)(B)''.
(d) Treatment of postpetition charitable contributions.--
(1) Confirmation of chapter 13 plan.--Section 1325(b)(2)(A)
of title 11, United States Code, is amended by inserting
before the semicolon the following: ``, including charitable
contributions (that meet the definition of `charitable
contribution' under section 548(d)(3)) to a qualified
religious or charitable entity or organization (as that term
is defined in section 548(d)(4)) in an amount not to exceed
15 percent of the gross income of the debtor for the year in
which the contributions are made''.
(2) Dismissal of chapter 7 case.--Section 707(b) of title
11, United States Code, is amended by adding at the end the
following: ``In making a determination whether to dismiss a
case under this section, the court may not take into
consideration whether a debtor has made, or continues to
make, charitable contributions (that meet the definition of
`charitable contribution' under section 548(d)(3)) to any
qualified religious or charitable entity or organization (as
that term is defined in section 548(d)(4)).''.
(3) Contents of chapter 11 plan.--Section 1123 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
provide for charitable contributions (as defined in section
548(d)(3) of this title) to a qualified religious or
charitable entity or organization (as defined in section
548(d)(4) of this title) in an aggregate annual amount not to
exceed 15 percent of the gross income of the debtor for the
year in which such contributions are made.''.
(4) Confirmation of chapter 12 plan.--Section 1225(b)(2) of
title 11, United States Code, is amended--
(A) in subparagraph (A) by striking ``or'' at the end;
(B) in subparagraph (B) by striking the period at the end
and inserting ``; or''; and
(C) by inserting adding at the end the following
``(C) for charitable contributions (as defined in section
548(d)(3) of this title) to a qualified religious or
charitable entity or organization (as defined in section
548(d)(4) of this title) in an aggregate annual amount not to
exceed 15 percent of the gross income of the debtor for the
year in which such contributions are made.''.
(e) Applicability.--
This section and the amendments made by this section shall
apply to any case brought under an applicable provision of
title 11, United States Code, that is pending or commenced on
or after the date of enactment of this Act.
(f) Rule of Construction.--
Nothing in the amendments made by this section is intended
to limit the applicability of the Religious Freedom
Restoration Act of 1993 (42 U.S.C. 2002bb et seq.).

SEC. 119. REINFORCE THE FRESH START.

(a) Restoration of an Effective Discharge.--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.
(b) Protection of Retirement Funds in Bankruptcy.--Section
522 of title 11, United States Code, is amended--
(1) in subsection (b)(2)--
(A) in subparagraph (A) by striking ``and'' at the end;
(B) in subparagraph (B) by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(C) retirement funds to the extent exempt from taxation
under section 401, 403, 408, 414, 457, or 501(a) of the
Internal Revenue Code of 1986.''; and
(2) in subsection (d) by adding at the end the following:
``(12) Retirement funds to the extent exempt from taxation
under 401, 403, 408, 414, 457, or 501(a) of the Internal
Revenue Code of 1986.''.
(c) Effective Protection for Utility Service in the Wake of
Deregulation.--Section 366 of title 11, United States Code,
is amended by adding at the end the following:
``(c) For the purposes of this section, the term `utility'
includes any provider of gas, electric, telephone,
telecommunication, cable television, satellite communication,
water, or sewer service, whether or not such service is a
regulated monopoly.''.

SEC. 119A. CHAPTER 11 DISCHARGE OF DEBTS ARISING FROM
TOBACCO-RELATED DEBTS.

Section 1141(d) of title 11, United States Code, is amended
by adding at the end the following:
``(5) The confirmation of a plan does not discharge a
debtor that is a corporation from any debt arising from a
judicial, administrative, or other action or proceeding that
is--
``(A) related to the consumption or consumer purchase of a
tobacco product; and
``(B) based in whole or in part on false pretenses, a false
representation, or actual fraud.''.

Subtitle C--Adequate Protections for Secured Creditors

SEC. 121. 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 new paragraphs:
``(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 that debtor was pending within the previous
1-year period but was dismissed, other than a case refiled
under a chapter other than chapter 7 after dismissal under
section 707(b) of this title, 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. If a party in interest
requests, 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. A case is presumptively filed not in good faith (but
such presumption may be rebutted by clear and convincing
evidence to the contrary)--
``(A) as to all creditors if--
``(i) more than 1 previous case under any of chapters 7,
11, or 13 in which the individual was a debtor was pending
within such 1-year period;
``(ii) a previous case under any of chapters 7, 11, or 13
in which the individual was a debtor was dismissed within
such 1-year period, 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 provide 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 any of
chapters 7, 11, or 13 of this title, or any other reason to
conclude that the later case will be concluded, if a case
under chapter 7 of this title, with a discharge, and if a
chapter 11 or 13 case, a confirmed plan which will be fully
performed;
``(B) 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 that case, that

[[Page H4414]]

action was still pending or had been resolved by terminating,
conditioning, or limiting the stay as to actions of that
creditor.
``(4) 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 that debtor were pending within the
previous year but were dismissed, other than a case refiled
under section 707(b) of this title, the stay under subsection
(a) will not go into effect upon the filing of the later
case. On request of a party in interest, the court shall
promptly enter an order confirming that no stay is in effect.
If a party in interest requests within 30 days of the filing
of the later case, 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. A stay imposed
pursuant to the preceding sentence will be effective on the
date of entry of the order allowing the stay to go into
effect. A case is presumptively not filed in good faith (but
such presumption may be rebutted by clear and convincing
evidence to the contrary)--
``(A) 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
``(B) 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 that case, that
action was still pending or had been resolved by terminating,
conditioning, or limiting the stay as to action of that
creditor.
``(5)(A) If a request is made for relief from the stay
under subsection (a) with respect to real or personal
property of any kind, and such request is granted in whole or
in part, the court may order in addition that the relief so
granted shall be in rem either for a definite period not less
than 1 year or indefinitely. After the issuance of such an
order, the stay under subsection (a) shall not apply to any
property subject to such an in rem order in any case of the
debtor under this title. If such an order so provides, such
stay shall also not apply in any pending or later-filed case
of any entity under this title that claims or has an interest
in the subject property other than those entities identified
in the court's order.
``(B) The court shall cause any order entered pursuant to
this paragraph with respect to real property to be recorded
in the applicable real property records, which recording
shall constitute notice to all parties having or claiming an
interest in such real property for purpose of this section.
``(6) For the purposes of this section, a case is pending
from the time of the order for relief until the case is
closed.''.

SEC. 122. DEFINITION OF HOUSEHOLD GOODS.

Section 101 of title 11, United States Code, is amended by
inserting after paragraph (27) the following:
``(27A) `household goods' has the meaning given such term
in the Trade Regulation Rule on Credit Practices promulgated
by the Federal Trade Commission (16 C.F.R. 444.1(i)), as in
effect on the effective date of this paragraph, but includes
any tangible personal property reasonably necessary for the
maintenance or support of a dependent child, including
children's toys;''.

SEC. 123. DEBTOR RETENTION OF PERSONAL PROPERTY SECURITY.

Title 11, United States Code, is amended--
(1) in section 521--
(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 of this title,
not retain possession of personal property having a value
exceeding $5,000 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 takes 1 of the following
actions within 30 days after the first meeting of creditors
under section 341(a)--
``(A) enters into a reaffirmation agreement with the
creditor pursuant to section 524(c) of this title with
respect to the claim secured by such property; or
``(B) redeems such property from the security interest
pursuant to section 722 of this title.

``If the debtor fails to so act within the 30-day period, 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. 124. RELIEF FROM STAY WHEN THE DEBTOR DOES NOT COMPLETE
INTENDED SURRENDER OF CONSUMER DEBT COLLATERAL.

Title 11, United States Code, is amended as follows--
(1) in section 362--
(A) by striking ``(e), and (f)'' in subsection (c) and
inserting in lieu thereof ``(e), (f), and (h)''; and
(B) by redesignating subsection (h) as subsection (i) and
by inserting after subsection (g) the following:
``(h) In an individual case pursuant to chapter 7, 11, or
13 the stay provided by subsection (a) is terminated with
respect to property of the estate having a value exceeding
$5000 and securing in whole or in part a claim, or subject to
an unexpired lease, if the debtor fails within the applicable
time set by section 521(a)(2) of this title--
``(1) to file timely any statement of intention required
under section 521(a)(2) of this title with respect to that
property or to indicate therein that the debtor will either
surrender the property or retain it and, if retaining it,
either redeem the property pursuant to section 722 of this
title, reaffirm the debt it secures pursuant to section
524(c) of this title, or assume the unexpired lease pursuant
to section 365(p) of this title if the trustee does not do
so, as applicable; or
``(2) to take timely the action specified in that statement
of intention, as it 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;

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.'';
(2) in section 521, as amended by sections 104, 406, and
407--
(A) in paragraph (2) by striking ``consumer'';
(B) in paragraph (2)(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'' the second place it
appears and inserting ``30-day'';
(C) in paragraph (2)(C) by inserting ``except as provided
in section 362(h)'' before the semicolon; and
(D) by adding at the end the following:
``(h) If the debtor fails timely to take the action
specified in subsection (a)(6) of this section, or in
paragraphs (1) and (2) of section 362(h) of this title, 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 which has the
effect of placing the debtor in default under such 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. 125. GIVING SECURED CREDITORS FAIR TREATMENT IN CHAPTER
13.

Section 1325(a)(5)(B)(i) of title 11, United States Code,
is amended to read as follows:
``(i) the plan provides that the holder of such claim
retain the lien securing such claim until the earlier of
payment of the underlying debt determined under nonbankruptcy
law or discharge under section 1328, and that 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''.

SEC. 126. PROMPT RELIEF FROM STAY IN INDIVIDUAL CASES.

Section 362(e) of title 11, United States Code, is amended
by inserting at the end the following:

``Notwithstanding the foregoing, in the case of an individual
filing under chapter 7, 11, or 13, the stay under subsection
(a) shall terminate 60 days after a request under subsection
(d) of this section, unless--
``(1) a final decision is rendered by the court within such
60-day period; or
``(2) such 60-day period is extended either by agreement of
all parties in interest or by the court for a specific time
which the court finds is required by compelling
circumstances.''.

SEC. 127. STOPPING ABUSIVE CONVERSIONS FROM CHAPTER 13.

Section 348(f)(1) of title 11, United States Code, is
amended--
(1) by striking in subparagraph (B) ``in the converted
case, with allowed secured claims'' and inserting in lieu
thereof ``only in a case converted to chapter 11 or 12 but
not in one converted to chapter 7, with allowed secured
claims in cases under chapters 11 and 12''; and

[[Page H4415]]

(2) in subparagraph (A) by striking ``and'' at the end;
(3) in subparagraph (B) by striking the period and
inserting ``; and''; and
(4) by adding at the end the following:
``(C) with respect to cases converted from chapter 13, 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 that 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 case under chapter of this title. Unless a
prebankruptcy default has been fully cured pursuant to 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.''.

SEC. 128. RESTRAINING ABUSIVE PURCHASES ON SECURED CREDIT.

Section 506 of title 11, United States Code, is amended by
adding at the end the following:
``(e) In an individual case under chapter 7, 11, 12, or
13--
``(1) subsection (a) shall not apply to an allowed claim to
the extent attributable in whole or in part to the purchase
price of personal property acquired by the debtor within 90
days of the filing of the petition, except for the purpose of
applying paragraph (3) of this subsection;
``(2) if such allowed claim attributable to the purchase
price is secured only by the personal property so acquired,
the value of the personal property and the amount of the
allowed secured claim shall be the sum of the unpaid
principal balance of the purchase price and accrued and
unpaid interest and charges at the contract rate;
``(3) if such allowed claim attributable to the purchase
price is secured by the personal property so acquired and
other property, the value of the security may be determined
under subsection (a), but the value of the security and the
amount of the allowed secured claim shall be not less than
the unpaid principal balance of the purchase price of the
personal property acquired and unpaid interest and charges at
the contract rate; and
``(4) in any subsequent case under this title that is filed
by or against the debtor in the 2-year period beginning on
the date the petition is filed in the original case, the
value of the personal property and the amount of the allowed
secured claim shall be deemed to be not less than the amount
provided under paragraphs (2) and (3).''.

SEC. 129. FAIR VALUATION OF COLLATERAL.

The last sentence of section 506(a) of title 11, United
States Code, is amended to read as follows:

``Such value shall be the liquidation value of the property
which shall be not more than the cash wholesale value of the
property and shall be determined in conjunction with any
hearing on a plan or after notice and a hearing pursuant to
any other provision of this title when they are paid in
full.''.

SEC. 130. PROTECTION OF HOLDERS OF CLAIMS SECURED BY DEBTOR'S
PRINCIPAL RESIDENCE.

Title 11, United States Code, is amended--
(1) in section 101 by inserting after paragraph (13) the
following:
``(13A) `debtor's principal residence' means a residential
structure including incidental property when the structure
contains 1 to 4 units, whether or not that structure is
attached to real property, and includes, without limitation,
an individual condominium or cooperative unit or mobile or
manufactured home or trailer;
``(13B) `incidental property' means property incidental to
such residence including, without limitation, property
commonly conveyed with a principal residence where the real
estate is located, window treatments, carpets, appliances and
equipment located in the residence, and easements,
appurtenances, fixtures, rents, royalties, mineral rights,
oil and gas rights, escrow funds and insurance proceeds;'';
(2) in section 362(b)--
(A) in paragraph (17) by striking ``or'' at the end
thereof;
(B) in paragraph (18) by striking the period at the end and
inserting ``; or''; and
(C) by inserting after paragraph (18) the following:
``(19) under subsection (a), until a prepetition default is
cured fully in a case under chapter 13 of this title case by
actual payment of all arrears as required by the plan, of the
postponement, continuation or other similar delay of a
prepetition foreclosure proceeding or sale in accordance with
applicable nonbankruptcy law, but nothing herein shall imply
that such postponement, continuation or other similar delay
is a violation of the stay under subsection (a).''; and
(3) by amending section 1322(b)(2) to read as follows:
``(2) modify the rights of holders of secured claims, other
than a claim secured primarily by a security interest in
property used as the debtor's principal residence at any time
during 180 days prior to the filing of the petition, or of
holders of unsecured claims, or leave unaffected the rights
of holders of any class of claims;''.

SEC. 131. AIRCRAFT EQUIPMENT AND VESSELS.

Section 1110(a)(1) of title 11, United States Code, is
amended--
(1) in subparagraph (A) by striking ``that become due on or
after the date of the order'';
(2) in subparagraph (B)--
(A) in clause (i) by striking ``and'' at the end; and
(B) in clause (ii)--
(i) by inserting ``and within such 60-day period'' after
``order''; and
(ii) in subclause (II) by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(iii) that occurs after the date of the order and such
60-day period is cured in accordance with the terms of such
security agreement, lease, or conditional sale contract.''.

Subtitle D--Adequate Protections for Unsecured Creditors

SEC. 141. FRAUDULENT DEBTS ARE NONDISCHARGEABLE IN CHAPTER 13
CASES.

Section 1328(a)(2) of title 11, United States Code, is
amended--
(1) by inserting ``(2), (3)(B), (4),'' after ``paragraph'';
and
(2) by inserting ``(6),'' after ``(5),''.

SEC. 142. APPLYING THE CODEBTOR STAY ONLY WHEN IT PROTECTS
THE DEBTOR.

Section 1301(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) When the debtor did not receive the consideration for
the claim held by a creditor, the stay provided by subsection
(a) does not apply to such creditor, notwithstanding
subsection (c), to the extent the creditor proceeds against
the individual which received such consideration or against
property not in the possession of the debtor which secures
such claim, after notice and a hearing to the person in
possession of such property, but this subsection shall not
apply if the debtor is primarily obligated to pay the
creditor in whole or in part with respect to the claim under
a legally binding separation agreement, or divorce or
dissolution decree, with respect to such individual or the
person who has possession of such property.
``(3) When the debtor's plan provides that the debtor's
interest in personal property subject to a lease as to which
the debtor is the lessee will be surrendered or abandoned or
no payments will be made under the plan on account of the
debtor's obligations under the lease, the stay provided by
subsection (a) shall terminate as of the date of confirmation
of the plan notwithstanding subsection (c).''.

SEC. 143. NONDISCHARGEABILITY OF CERTAIN DEBTS FOR ALIMONY,
MAINTENANCE, AND SUPPORT.

Section 523(a)(5) of title 11, United States Code, is
amended to read as follows:
``(5) to a spouse, former spouse, or child of the debtor
for alimony to, maintenance for, or support of such spouse or
child, or to a spouse, former spouse, or child of the debtor,
to the extent such debt is the result of a property
settlement agreement, a hold harmless agreement, or any other
type of debt that is not in the nature of alimony,
maintenance, or support in connection with or incurred by the
debtor in the course of a separation agreement, divorce
decree, any modifications thereof, or other order of a court
of record, determination made in accordance with State or
territorial law by a governmental unit, but not to the extent
that such debt is assigned to another entity, voluntarily, by
operation of law, or otherwise (other than debts assigned
pursuant to section 408(a)(3) of the Social Security Act, or
such debt that has been assigned to the Federal government,
or to a State or political subdivision of such State, or the
creditor's attorney);''.

SEC. 144. OTHER EXCEPTIONS TO DISCHARGE.

Section 523 of title 11, United States Code, is amended--
(1) by striking subsection (a)(15), as added by section
304(e)(1) of Public Law 103-394;
(2) in subsection (a)(7) by inserting ``an order of
disgorgement or restitution obtained by a governmental unit''
after ``such debt is for''; and
(3) in subsection (c)(1) by striking ``(6), or (15)'' and
inserting ``or (6)''.

SEC. 145. FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS.

(a) Exception to Discharge.--Section 523(a)(16) of title
11, United States Code, is amended--
(1) by striking ``dwelling'' the 1st place it appears;
(2) by striking ``ownership or'' and inserting
``ownership,'';
(3) by striking ``housing'' the 1st place it appears; and
(4) by striking ``but only'' and all that follows through
``such period,'', 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,''.
(b) Executory Contracts.--Section 365 of title 11, United
States Code, as amended by section 161, is amended by adding
at the end the following:
``(q) A debt of a kind described in section 523(a)(16) of
this title shall not be considered to be a debt arising from
an executory contract.''

SEC. 146. ADEQUATE PROTECTION FOR INVESTORS.

(a) Definition.--Section 101 of title 11, United States
Code, 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 pursuant to section 15A of
the Securities Exchange Act of 1934 or a national

[[Page H4416]]

securities exchange registered with the Securities and
Exchange Commission pursuant to section 6 of the Securities
Exchange Act of 1934;''.
(b) Automatic Stay.--Section 362(b) of title 11, United
States Code, is amended--
(1) in paragraph (17) by striking ``or'' at the end;
(2) in paragraph (18) by striking the period at the end and
a inserting ``; or''; and
(3) by adding at the end the following:
``(19) under subsection (a) of this section, of the
commencement or continuation of an investigation or action by
a securities self regulatory organization to enforce such
organization's regulatory power; of 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 of 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. 147. SUPER-PRIORITY FOR CHILD AND SPOUSAL SUPPORT
CLAIMS.

Section 507 of title 11, United States Code, is amended by
adding at the end the following:
``(e) Notwithstanding any other provision of this title, a
claim entitled to priority under subsection (a)(7) shall have
first priority over any expense or claim that has priority
under any other provision of this title, except that
administrative expenses may be paid under the priority
provided in subsection (a)(1) if the failure to do so would
result in less property being distributed to the holder of a
claim of a kind specified in subsection (a)(7).''.

SEC. 148. DEBTS FOR ALIMONY, MAINTENANCE, AND SUPPORT.

(a) Nondischargeability.--Section 523(a)(18) of title 11,
United States Code, is amended--
(1) by inserting ``(including interest)'' after ``law'';
and
(2) in subparagraph (A) by striking ``and'' at the end and
inserting ``or''.
(b) Automatic Stay.--Section 362(b) of title 11, United
States Code, as amended by section 130, is amended--
(1) in paragraph (19) by striking ``or'' at the end;
(2) in paragraph (19) by striking the period at the end and
inserting a semicolon; and
(3) by adding at the end the following:
``(20) under subsection (a) with respect to the withholding
of income pursuant to an order for support that is owed to a
spouse, former spouse, or child of the debtor; or
``(21) under subsection (a) with respect to the
withholding, suspension, or restriction of drivers' licenses,
professional and occupational licenses, and recreational
licenses pursuant to State law as specified in section
466(a)(15) of the Social Security Act or with respect to the
reporting of overdue support owed by an absent parent to any
consumer reporting agency as specified in section 466(a)(7)
of the Social Security Act.''.
(c) Continued Liability of Property.--Section 522(c) of
title 11, United States Code, is amended by striking
``section 523(a)(1) or 523(a)(5)'' and inserting ``paragraph
(1) or (5) of section 523(a)''.
(d) Confirmation of Plans.--Title 11 of the 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 to pay alimony to, maintenance for, or
support of a spouse, former spouse, or child of the debtor,
the debtor has paid all amounts payable under such order for
current alimony, maintenance, or support that are due after
the date the petition is filed and owed to such spouse,
former spouse, or child, unless such spouse, former spouse,
or child waives the operation of this paragraph.'';
(2) 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) the debtor is required by a judicial or
administrative order to pay alimony to, maintenance for, or
support of a spouse, former spouse, or child of the debtor,
the debtor has paid all amounts payable under such order for
current alimony, maintenance, or support that are due after
the date the petition is filed and owed to such spouse,
former spouse, or child, unless such spouse, former spouse,
or child waives the operation of this paragraph.''; and
(3) 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 to pay alimony to, maintenance for, or
support of a spouse, former spouse, or child of the debtor,
the debtor has paid all amounts payable under such order for
current alimony, maintenance, or support that are due after
the date the petition is filed and owed to such spouse,
former spouse, or child, unless such spouse, former spouse,
or child waives the operation of this paragraph.''.
(f) Discharge.--Title 11 United States Code is amended--
(1) in section 1228(a) by inserting ``and only after a
debtor who is required by a judicial or administrative order
to pay alimony to, maintenance for, or support of a spouse,
former spouse, or child of the debtor, certifies that all
amounts payable under such order for alimony, maintenance, or
support that are due after the date the petition is filed
have been paid unless such spouse, former spouse, or child
waives the operation of this paragraph,'' after ``this
title,''; and
(2) in section 1328(a) by inserting ``and only after a
debtor who is required by a judicial or administrative order
to pay alimony to, maintenance for, or support of a spouse,
former spouse, or child of the debtor, certifies that all
amounts payable under such order for alimony, maintenance, or
support that are due after the date the petition is filed
have been paid unless such spouse, former spouse, or child
waives the operation of this paragraph,'' after ``plan,'' the
1st place it appears.
(g) Conforming Amendments.--Section 456(b) of the Social
Security Act (42 U.S.C. 656(b)) is amended--
(1) by inserting ``, including interest,'' after ``Code)'';
(2) by striking ``and'' and inserting ``or''; and
(3) by striking ``released by a discharge'' and inserting
``dischargeable''.

SEC. 149. PROTECTION OF CHILD SUPPORT AND ALIMONY.

(a) Amendment.--Title 11 of the United States Code, as
amended by section 116, is amended by inserting after section
528 the following:

``Sec. 529. Protection of child support and alimony payments
after the discharge

``Notwithstanding the provisions of the constitution or law
of any State providing a different priority, any debts of the
individual who has received a discharge under this title to a
spouse, former spouse, or child for alimony to, maintenance
for, or support of such spouse or child, in connection with a
separation agreement, divorce decree, or other order of a
court of record, determination made in accordance with State
or territorial law by a governmental unit, or property
settlement agreement, but not to the extent that such debt--
``(1) is assigned to another entity, voluntarily, by
operation of law, or otherwise; or
``(2) includes a liability designated as alimony,
maintenance, or support, unless such liability is actually in
the nature of alimony, maintenance, or support,

and any debt of a kind specified in paragraph (6), (9), or
(13) of section 523(a) of this title, shall have priority in
payment and collection over a creditor's claim which is not
discharged in the individual's case pursuant to paragraph (2)
or (4) of section 523(a) of this title, but such priority
shall not affect the priority of any consensual lien,
mortgage, or security interest securing such creditor's
claim.''.
(b) Conforming Amendment.--The table of sections of chapter
5 of title 11, United States Code, as amended by section 116,
is amended by inserting after the item relating to section
528 the following:

``529. Protection of child support and alimony.''.

Subtitle E--Adequate Protections for Lessors

SEC. 161. 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 with an aggregate
value of not less than $5,000 leased by the debtor 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) of this title is
automatically terminated.
``(2) 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 lessor. If within 30 days of such notice
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. The stay under section 362 of
this title and the injunction under section 524(a)(2) of this
title shall not be violated by notification of the debtor and
negotiation of cure under this subsection.
``(3) In a case under chapter 11 of this title in which the
debtor is an individual and in a case under chapter 13 of
this title, 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 of this title and any
stay under section 1301 is automatically terminated with
respect to the property subject to the lease.''.

Subtitle F--Bankruptcy Relief Less Frequently Available for Repeat
Filers

SEC. 171. EXTEND PERIOD BETWEEN BANKRUPTCY DISCHARGES.

Section 727(a)(8) of title 11, United States Code, is
amended by striking ``six'' and inserting ``7''.

Subtitle G--Exemptions

SEC. 181. EXEMPTIONS.

Section 522(b)(2)(A) of title 11, United States Code, is
amended--

[[Page H4417]]

(1) by striking ``180'' and inserting ``365''; and
(2) by striking ``, or for a longer portion of such 180-day
period than in any other place''.

SEC. 182. LIMITATION.

Section 522 of title 11, United States Code, is amended--
(1) in subsection (b)(2)(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)(2)(A) to exempt property
under State or local law, a debtor may not exempt any
interest to the extent that such interest exceeds $100,000 in
value, in the aggregate, 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--
``(A) an exemption claimed under subsection (b)(2)(A) by a
family farmer for the principal residence of that farmer; or
``(B) a case commenced under section 303 of this title.''.

SEC. 183. PROVIDE FAIR PROPERTY EXEMPTIONS AND PREVENT HIGH-
ROLLERS FROM ABUSING THE SYSTEM.

Section 522 of title 11, United States Code, is amended by
adding at the end the following:
``(n) If, in the 1-year period ending on the date of the
filing of the petition and while the debtor was insolvent,
the debtor makes property exempt under subsection (b) by
converting property to a form of property that is exempt in
an unlimited amount, such property shall not be exempt under
this section to the extent that the value of the debtor's
interest in the property that is converted exceeds $100,000.
Such conversion shall not otherwise be a basis for denying an
exemption and shall not be the basis for denying the debtor
other relief under this title.''.

TITLE II--BUSINESS BANKRUPTCY PROVISIONS

Subtitle A--General Provisions

SEC. 201. LIMITATION RELATING TO THE USE OF FEE EXAMINERS.

Section 330 of title 11, United States Code, is amended by
adding at the end the following:
``(e) The court may not appoint any person to examine any
request for compensation or reimbursement payable under this
section.''.

SEC. 202. SHARING OF COMPENSATION.

Section 504 of title 11, United States Code, is amended by
adding at the end the following:
``(c) This section shall not apply with respect to sharing,
or agreeing to share, compensation with a bona fide public
service attorney referral program that operates in accordance
with non-Federal law regulating attorney referral services
and with rules of professional responsibility applicable to
attorney acceptance of referrals.''.

SEC. 203. CHAPTER 12 MADE PERMANENT LAW.

Section 302(f) of the Bankruptcy Judges, United States
Trustees, and Family Farmer Bankruptcy Act of 1986 (11 U.S.C.
1201 note) is repealed.

SEC. 204. 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. 205. CREDITORS' AND EQUITY SECURITY HOLDERS' COMMITTEES.

Section 1102(b) of title 11, United States Code, is amended
by adding at the end the following:
``(3) The court on its own motion or on request of a party
in interest, and after notice and a hearing, may order a
change in membership of a committee appointed under
subsection (a) if necessary to ensure adequate representation
of creditors or of equity security holders.''.

SEC. 206. 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. 207. PREFERENCES.

Section 547(c) of title 11, United States Code, is
amended--
(1) by amending paragraph (2) to read as follows:
``(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
$5000.''.

SEC. 208. 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. 209. CASES ANCILLARY TO FOREIGN PROCEEDINGS INVOLVING
FOREIGN INSURANCE COMPANIES THAT ARE ENGAGED IN
THE BUSINESS OF INSURANCE OR REINSURANCE IN THE
UNITED STATES.

Section 304 of title 11, United States Code, is amended--
(1) in subsection (b) by striking ``provisions of
subsection (c)'' and inserting ``subsections (c) and (d)'';
and
(2) by adding at the end the following:
``(d) The court may not grant to a foreign representative
of the estate of an insurance company that is not organized
under the law of a State and that is engaged in the business
of insurance, or reinsurance, in the United States relief
under subsection (b) with respect to property that is--
``(1) a deposit required by a State law relating to
insurance or reinsurance;
``(2) a multibeneficiary trust required by a State law
relating to insurance or reinsurance to protect holders of
insurance policies issued in the United States or to protect
holders or claimants against such policies; or
``(3) a multibeneficiary trust authorized by a State law
relating to insurance or reinsurance to allow a person
engaged in the business of insurance in the United States--
``(A) to cede reinsurance to such an insurance company; and
``(B) to treat so ceded reinsurance as an asset, or
deduction from liability, in financial statements of such
person.''.

SEC. 210. 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) Such 120-day period may not be extended beyond a
date that is 18 months after the date of the order for relief
under this chapter unless the court determines that there is
substantial likelihood that the failure to extend such date
would result in the loss of jobs in the operation of the
debtor's business.
``(B) Such 180-day period may not be extended beyond a date
that is 20 months after the date of the order for relief
under this chapter unless the court determines that there is
substantial likelihood that the failure to extend such date
would result in the loss of jobs in the operation of the the
debtor's business.''.

SEC. 211. UNEXPIRED LEASES OF NONRESIDENTIAL REAL PROPERTY.

Section 365(d)(4) of title 11, United States Code, is
amended to read as follows:
``(4) In a case under any chapter of this title, if the
trustee does not assume or reject an unexpired lease of
nonresidential real property under which the debtor is the
lessee before the earlier of (A) 120 days after the date of
the order for relief, or (B) the entry of an order confirming
a plan, then such lease is deemed rejected, and the trustee
shall immediately surrender such nonresidential real property
to the lessor but in no event shall such time period exceed
120 days unless the court determines that there is
substantial likelihood that the failure to extend such date
would result in the loss of jobs in the operation of the
debtor's business. Notwithstanding the immediately preceding
sentence, and provided no plan has been confirmed, upon
debtor's motion, and after notice and a hearing, the court
may within such 120-day period extend the 120-day period by a
period not to exceed 150 days, contingent upon written
consent of the affected lessor or with the approval of the
court, and provided trustee has timely performed all post-
petition lease obligations, but in no circumstance shall such
period extend beyond the earlier of (i) 270 days from the
date of the order for relief or (ii) the entry of an order
approving a disclosure statement, without the consent of the
lessor unless the court determines that there is substantial
likelihood that the failure to extend such date would result
in the loss of jobs in the operation of the debtor's
business.''.

SEC. 212. 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

[[Page H4418]]

relationship to, connection with, or interest in, the debtor,
or for any other reason;''.

Subtitle B--Specific Provisions

CHAPTER 1--SMALL BUSINESS BANKRUPTCY

SEC. 231. DEFINITIONS.

(a) Definitions.--Section 101 of title 11, United States
Code, 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' means--
``(A) a person (including affiliates of such person that
are also debtors under this title) 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 $5,000,000 (excluding debts owed to 1 or more
affiliates or insiders); or
``(B) a debtor of the kind described in paragraph (51B) but
without regard to the amount of such debtor's debts;

except that if a group of affiliated debtors has aggregate
noncontingent liquidated secured and unsecured debts greater
than $5,000,000 (excluding debt owed to 1 or more affiliates
or insiders), then no member of such group is a small
business debtor;''.
(b) Conforming Amendment.--Section 1102(a)(3) of title 11,
United States Code, is amended by inserting ``debtor'' after
``small business''.

SEC. 232. FLEXIBLE RULES FOR DISCLOSURE STATEMENT AND PLAN.

Section 1125(f) of title 11, United States Code, is amended
to read as follows:
``(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
pursuant to 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 less 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. 233. STANDARD FORM DISCLOSURE STATEMENTS AND PLANS.

The Advisory Committee on Bankruptcy Rules of the Judicial
Conference of the United States shall, within a reasonable
period of time after the date of the enactment of this Act,
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 or bankruptcy administrator, creditors, and other
parties in interest for reasonably complete information; and
(2) economy and simplicity for debtors.

SEC. 234. UNIFORM NATIONAL REPORTING REQUIREMENTS.

(a) Reporting Required.--(1) Title 11 of the United States
Code is amended by inserting after section 307 the following:

``Sec. 308. Debtor reporting requirements

``A small business debtor shall file periodic financial and
other reports containing information including--
``(1) the debtor's profitability, that is, approximately
how much money the debtor has been earning or losing during
current and recent fiscal periods;
``(2) reasonable approximations of the debtor's projected
cash receipts and cash disbursements over a reasonable
period;
``(3) comparisons of actual cash receipts and disbursements
with projections in prior reports;
``(4) whether the debtor is--
``(A) in compliance in all material respects with
postpetition requirements imposed by this title and the
Federal Rules of Bankruptcy Procedure; and
``(B) timely filing tax returns and paying taxes and other
administrative claims when due, and, if not, what the
failures are and how, at what cost, and when the debtor
intends to remedy such failures; and
``(5) 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) The table of sections of 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 pursuant to section 2075, 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. 235. UNIFORM REPORTING RULES AND FORMS.

After consultation with the Director of the Executive for
United States Trustees and with the Judicial Conference of
the United States, the Attorney General 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 comply with section 308 of title
11, United States Code, as added by section 234 of this Act
to achieve a practical balance between--
(1) the reasonable needs of the courts, the United States
trustee or bankruptcy administrator, creditors, and other
parties in interest for reasonably complete information; and
(2) economy and simplicity for debtors in cases under such
title.

SEC. 236. DUTIES IN SMALL BUSINESS CASES.

(a) Duties in Chapter 11 Cases.--Title 11 of the United
States Code is amended by inserting after section 1114 the
following:

``Sec. 1115. 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 3 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 of this title;
``(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;
``(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
``(C) subject to section 363(c)(2), establish 1 or more
separate deposit accounts not later than 10 business days
after the date of order for relief (or as soon thereafter as
possible if all banks contacted decline the business) and
deposit therein, not later than 1 business day after receipt
thereof, all taxes payable for periods beginning after the
date the case is commenced that are collected or withheld by
the debtor for governmental units; and
``(7) allow the United States trustee or bankruptcy
administrator, or its designated representative, 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) Technical Amendment.--The table of sections of chapter
11, United States Code, is amended by inserting after the
item relating to section 1114 the following:

``1115. Duties of trustee or debtor in possession in small business
cases.''.

SEC. 237. PLAN FILING AND CONFIRMATION DEADLINES.

Section 1121(e) of title 11, United States Code, is amended
to read as follows:
``(e) In a small business case--
``(1) only the debtor may file a plan until after 90 days
after the date of the order for relief, unless shortened on
request of a party in interest made during the 90-day period,
or unless extended as provided by this subsection, after
notice and hearing the court, for cause, orders otherwise;
``(2) the plan, and any necessary disclosure statement,
shall be filed not later than 90 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) of this title, 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 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. 238. 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 150 days after

[[Page H4419]]

the date of the order for relief unless such 150-day period
is extended as provided in section 1121(e)(3) of this
title.''.

SEC. 239. PROHIBITION AGAINST EXTENSION OF TIME.

Section 105(d) of title 11, United States Code, is
amended--
(1) in paragraph (2)(B)(vi) by striking the period at the
end and inserting ``; and''; and
(2) by adding at the end the following:
``(3) in a small business case, not extend the time periods
specified in sections 1121(e) and 1129(e) of this title
except as provided in section 1121(e)(3) of this title.''.

SEC. 240. DUTIES OF THE UNITED STATES TRUSTEE AND BANKRUPTCY
ADMINISTRATOR.

(a) Duties of the United States Trustee.--Section 586(a) of
title 28, United States Code, as amended by section 111, 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 (6) by striking ``and'' at the end,
(3) in paragraph (7) by striking the period at the end and
inserting ``; and'', and
(4) by inserting after paragraph (7) the following:
``(8) 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 begin to
investigate the debtor's viability, inquire about the
debtor's business plan, explain the debtor's obligations to
file monthly operating reports and other required reports,
attempt to develop an agreed scheduling order, and inform the
debtor of other obligations;
``(B) when 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;
``(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
``(D) in cases where the United States trustee finds
material grounds for any relief under section 1112 of title
11 move the court promptly for relief.''.
(b) Duties of the Bankruptcy Administrator.--In a small
business case (as defined in section 101 of title 11 of the
United States Code), the bankruptcy administrator shall
perform the duties specified in section 586(a)(6) of title 28
of the United States Code.

SEC. 241. 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 amending paragraph (1) to read as follows:
``(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,'' and inserting ``may''.

SEC. 242. SERIAL FILER PROVISIONS.

Section 362 of title 11, United States Code, is amended--
(1) in subsection (i) as so redesignated by section 124--
(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, then recovery under paragraph (1) against such
entity shall be limited to actual damages.''; and
(2) by inserting after subsection (i), as redesignated by
section 124, the following:
``( ) The filing of a petition under chapter 11 of this
title 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--
``(1) is a debtor in a small business case pending at the
time the petition is filed;
``(2) was a debtor in a small business case which 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;
``(3) 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
``(4) 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) unless the debtor
proves, by a preponderance of the evidence, that the filing
of such petition resulted from circumstances beyond the
control of the debtor not foreseeable at the time the case
then pending was filed; and that it is more likely than not
that the court will confirm a feasible plan, but not a
liquidating plan, within a reasonable time.''.

SEC. 243. EXPANDED GROUNDS FOR DISMISSAL OR CONVERSION AND
APPOINTMENT OF TRUSTEE.

(a) Expanded Grounds for Dismissal or Conversion.--Section
1112(b) of title 11, United States Code, is amended to read
as follows:
``(b)(1) Except as provided in paragraph (2), in subsection
(c), and in section 1104(a)(3) of this title, 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 of this title 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) it is more likely than not that a plan will be
confirmed within a time as fixed by this title or by order of
the court entered pursuant to section 1121(e)(3), or within a
reasonable time if no time has been fixed; and
``(B) if the reason is an act or omission of the debtor
that--
``(i) there exists a reasonable justification for the act
or omission; and
``(ii) the act or omission will be cured within a
reasonable time fixed by the court not to exceed 30 days
after the court decides the motion, unless the movant
expressly consents to a continuance for a specific period of
time, or compelling circumstances beyond the control of the
debtor justify an extension.
``(3) 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;
``(D) unauthorized use of cash collateral harmful to 1 or
more creditors;
``(E) failure to comply with an order of the court;
``(F) 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) of this title 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 of this title, and denial of confirmation of another
plan or of a modified plan under section 1129 of this title;
``(M) inability to effectuate substantial consummation of a
confirmed plan;
``(N) material default by the debtor with respect to a
confirmed plan; and
``(O) termination of a plan by reason of the occurrence of
a condition specified in the plan.
``(4) 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 of this title, but the court determines that the
appointment of a trustee is in the best interests of
creditors and the estate.''.

CHAPTER 2--SINGLE ASSET REAL ESTATE

SEC. 251. SINGLE ASSET REAL ESTATE DEFINED.

Section 101(51B) of title 11, United States Code, is
amended to read as follows:
``(51B) `single asset real estate' means undeveloped real
property or other real property constituting a single
property or project, other than residential real property
with fewer than 4 residential units, on which is located a
single development or project which property or project
generates substantially all of the gross income of a debtor
and on which no substantial business is being conducted by a
debtor, or by a commonly controlled group of entities all of
which are concurrently debtors in a case under chapter 11 of
this title, other than the business of operating the real
property and activities incidental thereto;''.

SEC. 252. 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 amending subparagraph (B) to read as follows:
``(B) the debtor has commenced monthly payments (which
payments may, in the debtor's sole discretion,
notwithstanding section

[[Page H4420]]

363(c)(2) of this title, 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), which payments 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''.

CHAPTER 3--CONDITIONAL APPLICATION OF AMENDMENTS

SEC. 291. LOSS OF JOBS.

The amendments made by this subtitle shall not apply in a
case under title 11 of the United States Code if the court
determines that there is a substantial likelihood that the
application of such amendments in such case would result in a
loss of jobs in the operation of the debtor's business in
such case.

TITLE III--MUNICIPAL BANKRUPTCY PROVISIONS

SEC. 301. 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''; and
(2) by amending the last sentence to read as follows:
``(b) The commencement of a voluntary case under a chapter
of this title constitutes an order for relief under such
chapter.''.

SEC. 302. APPLICABILITY OF OTHER SECTIONS TO CHAPTER 9.

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

TITLE IV--BANKRUPTCY ADMINISTRATION

Subtitle A--General Provisions

SEC. 401. ADEQUATE PREPARATION TIME FOR CREDITORS BEFORE THE
MEETING OF CREDITORS IN INDIVIDUAL CASES.

Section 341(a) of title 11, United States Code, is amended
by inserting after the first sentence the following: ``If the
debtor is an individual in a voluntary case under chapter 7,
11, or 13, the meeting of creditors shall not be convened
earlier than 60 days (or later than 90 days) after the date
of the order for relief, unless the court, after notice and
hearing, determines unusual circumstances justify an earlier
meeting.''.

SEC. 402. 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 State or Federal nonbankruptcy 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 its representatives (which
representatives 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. 403. FILING PROOFS OF CLAIM.

Section 501 of title 11, United States Code, is amended by
adding at the end the following:
``(e) In a case under chapter 7 or 13, a proof of claim or
interest is deemed filed under this section for any claim or
interest that appears in the schedules filed under section
521(a)(1) of this title, except a claim or interest that is
scheduled as disputed, contingent, or unliquidated.''.

SEC. 404. AUDIT PROCEDURES.

(a) Amendment.--Section 586 of title 28, United States
Code, as amended by sections 111 and 240, is amended--
(1) by amending subsection (a)(6) to read as follows:
``(6) make such reports as the Attorney General directs,
including the results of audits performed under subsection
(f),'';
(2) by inserting at the end the following:
``(f)(1) The Attorney General shall establish procedures
for the auditing of the accuracy and completeness of
petitions, schedules, and other information which the debtor
is required to provide under sections 521 and 1322, and, if
applicable, section 111, of title 11 in individual cases
filed under chapter 7 or 13 of such title. Such procedures
shall--
``(A) establish a method of selecting appropriate qualified
persons to contract with the United States trustee to perform
such audits;
``(B) establish a method of randomly selecting cases to be
audited according to generally accepted audit standards,
provided that no less than 1 out of every 1000 cases in each
Federal judicial district shall be selected for audit and
provided that such procedures shall ensure that the United
States trustee may select such cases in which there is a high
likelihood of fraud;
``(C) require audits for schedules of income and expenses
which reflect higher than average variances from the
statistical norm of the district in which the schedules were
filed;
``(D) establish procedures for reporting the results of
such audits and any material misstatement of income,
expenditures or assets of a debtor to the Attorney General,
the United States Attorney and the court, as appropriate, and
for providing public information no less than annually on the
aggregate results of such audits including the percentage of
cases, by district, in which a material misstatement of
income or expenditures is reported; and
``(E) establish procedures for fully funding such audits.
``(2) The United States trustee for each district is
authorized to contract with auditors to perform audits in
cases designated by the United States trustee according to
the procedures established under paragraph (1) of this
subsection.
``(3) According to procedures established under paragraph
(1), upon request of a duly appointed auditor, the debtor
shall cause the accounts, papers, documents, financial
records, files and all other papers, things or property
belonging to the debtor as the auditor requests and which are
reasonably necessary to facilitate an audit to be made
available for inspection and copying.
``(4) The report of each such audit shall be filed with the
court, the Attorney General, and the United States Attorney,
as required under procedures established by the Attorney
General under paragraph (1). If a material misstatement of
income or expenditures or of assets is reported, a statement
specifying such misstatement shall be filed with the court
and the United States trustee shall give notice thereof to
the creditors in the case and, in an appropriate case, in the
opinion of the United States trustee, requires investigation
with respect to possible criminal violations, the United
States Attorney for the district.''.
(b) Effective Date.--The amendments made by this section
shall take effect 18 months after the date of the enactment
of this Act.

SEC. 405. GIVING CREDITORS FAIR NOTICE IN CHAPTER 7 AND 13
CASES.

Section 342 of title 11, United States Code, is amended--
(1) in subsection (c)--
(A) by striking ``, but the failure of such notice to
contain such information shall not invalidate the legal
effect of such notice''; and
(B) by adding the following at the end:

``If the credit agreement between the debtor and the creditor
or the last communication before the filing of the petition
in a voluntary case from the creditor to a debtor who is an
individual states an account number of the debtor which is
the current account number of the debtor with respect to any
debt held by the creditor against the debtor, the debtor
shall make a good faith effort to include such account number
in any notice to the creditor required to be given under this
title. If the creditor has specified to the debtor an address
at which the creditor wishes to receive correspondence
regarding the debtor's account, the debtor shall make a good
faith effort to provide any notice required to be given under
this title by the debtor to the creditor at such address. For
the purposes of this section, `notice' shall include, but
shall not be limited to, any correspondence from the debtor
to the creditor after the commencement of the case, any
statement of the debtor's intention under section 521(a)(2)
of this title, notice of the commencement of any proceeding
in the case to which the creditor is a party, and any notice
of the hearing under section 1324.'';
(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) Notice given to a creditor other than as provided in
this section shall not be effective notice until it has been
brought to the attention of the creditor unless the creditor
knew or should have known of such notice. If the creditor has
designated a person or department to be responsible for
receiving notices concerning bankruptcy cases and has
established reasonable procedures so that bankruptcy notices
received by the creditor will be delivered to such department
or person, notice will not be brought to the attention of the
creditor until received by such person or department. No
sanction under section 362(h) of this title or any other
sanction which a court may impose on account of violations of
the stay under section 362(a) of this title or failure to
comply with section 542 or 543 of this title 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 unless the creditor
knew or should have known of such notice.''.

SEC. 406. DEBTOR TO PROVIDE TAX RETURNS AND OTHER
INFORMATION.

Section 521 of title 11, United States Code, is amended--
(1) by inserting ``(a)'' before ``The'';
(2) by amending paragraph (1) to read as follows:

[[Page H4421]]

``(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;
``(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 prior to the filing of the
petition;
``(v) a statement of the amount of disposable income,
itemized to show how calculated;
``(vi) if applicable, any statement under paragraphs (3)
and (4) of section 109(h);
``(vii) a statement disclosing any reasonably anticipated
increase in income or expenditures over the next 12 months;
and
``(viii) a certificate, if applicable--

``(I) of an attorney whose name is on the petition as the
attorney for the debtor, or of any bankruptcy petition
preparer who signed the petition pursuant to section
110(b)(1) of this title, indicating that such attorney or
bankruptcy petition preparer delivered to the debtor any
notice required by section 342(b)(1) of this title; 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;''; and

(3) by adding at the end the following:
``(b) 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 notice that the creditor requests the
petition, schedules, and statement of financial affairs filed
by the debtor in the case. At any time, a creditor in a case
under chapter 13 of this title may file with the court and
serve on the debtor notice that the creditor requests the
plan filed by the debtor in the case. Within 10 days of the
first such request in a case under this subsection for the
petition, schedules, and statement of financial affairs and
the first such request for the plan under this subsection,
the debtor shall serve on that creditor a conformed copy of
the requested documents or plan and any amendments thereto as
of that date, and shall thereafter promptly serve on that
creditor at the time filed with the court--
``(1) any requested document or plan which is not filed
with the court at the time requested; and
``(2) any amendment to any requested document or plan.
``(c) An individual debtor in a case under chapter 7 or 13
shall provide to the United States trustee, on the request of
the United States trustee--
``(1) copies of all Federal tax returns (including any
schedules and attachments) filed by the debtor for the 3 most
recent tax years preceding the order for relief;
``(2) at the time the debtor files them with the
Commissioner of Internal Revenue, all Federal tax returns
(including any schedules and attachments) for the debtor's
tax years ending while such case is pending; and
``(3) at the time the debtor files them with the
Commissioner of Internal Revenue, all amendments to the tax
returns (including schedules and attachments) described in
subparagraphs (A) and (B).
``(d) A debtor in a case under chapter 13 of this title
shall file, from a time which 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 then been confirmed, and
thereafter on or before 45 days before each anniversary of
the confirmation of the plan until the case is closed, 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 net income, showing how calculated. Such
statement shall disclose the amount and sources of income of
the debtor, the identity of any persons responsible with the
debtor for the support of any dependents of the debtor, and
any persons who contributed and the amount contributed to the
household in which the debtor resides. Such tax returns,
amendments and statement of income and expenditures shall be
available to the United States trustee, any bankruptcy
administrator, any trustee and any party in interest for
inspection and copying.''.

SEC. 407. DISMISSAL FOR FAILURE TO FILE SCHEDULES TIMELY OR
PROVIDE REQUIRED INFORMATION.

Section 521 of title 11, United States Code, as amended by
section 406, is amended by adding at the end the following:
``(e) Notwithstanding section 707(a) of this title, if an
individual debtor in a voluntary case under chapter 7 or 13
fails to provide all of the information required under
subsections (a)(1) and (c)(1)(A) within 45 days after the
filing of the petition, the case shall be automatically
dismissed effective on the 46th day after the filing of the
petition without the need for any order of court unless the
court for good cause beyond the debtor's control orders
otherwise, but any party in interest may request the court to
enter an order dismissing the case and the court shall, if so
requested, enter an order of dismissal within 5 days of such
request if the court finds compelling justification for doing
so.
``(f) If an individual debtor in a case under chapter 7 or
13 fails to perform any of the duties imposed by subsections
(b), (c)(1)(B), (c)(1)(C), and (d), any party in interest may
request that the court order the debtor to comply. Within 10
days of such request the court shall order that the debtor do
so within a period of time set by the court no longer than 30
days unless the court for good cause beyond the debtor's
control orders otherwise. If the debtor does not comply with
that order within the period of time set by the court, the
court shall, on request of any party in interest certifying
that the debtor has not so complied, enter an order
dismissing the case within 5 days of such request.''.

SEC. 408. ADEQUATE TIME TO PREPARE FOR HEARING ON
CONFIRMATION OF THE PLAN.

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 earlier than 20 days, and not later than 45 days, after
the meeting of creditors under section 341(a) of this
title.''.

SEC. 409. SENSE OF THE CONGRESS REGARDING EXPANSION OF RULE
9011 OF THE FEDERAL RULES OF BANKRUPTCY
PROCEDURE.

It is the sense of the 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 well grounded in fact, and is warranted by
existing law or a good-faith argument for the extension,
modification, or reversal of existing law.

SEC. 410. JURISDICTION OF COURTS OF APPEALS.

(a) Jurisdiction.--Title 28 of the United States Code is
amended--
(1) by striking section 158;
(2) by inserting after section 1292 the following:

``Sec. 1293. Bankruptcy appeals

``The courts of appeals (other the United States Court of
Appeals for the Federal Circuit) shall have jurisdiction of
appeals from the following:
``(1) Final orders and judgments of bankruptcy courts
entered under--
``(A) section 157(b) of this title in core proceedings
arising under title 11, or arising in or related to a case
under title 11; or
``(B) section 157(c)(2) of this title in proceedings
referred to such courts.
``(2) Final orders and judgments of district courts entered
under section 157 of this title in--
``(A) core proceedings arising under title 11, or arising
in or related to a case under title 11; or
``(B) proceedings that are not core proceedings, but that
are otherwise related to a case under title 11.
``(3) Orders and judgments of bankruptcy courts or district
courts entered under section 105 of title 11, or the refusal
to enter an order or judgment under such section.
``(4) Orders of bankruptcy courts or district courts
entered under section 1104(a) or 1121(d) of title 11, or the
refusal to enter an order under such section.
``(5) An interlocutory order of a bankruptcy court or
district court entered in a case under title 11, in a
proceeding arising under title 11, or in a proceeding arising
in or related to a case under title 11, if--
``(A) such court is of the opinion that--
``(i) such order involves a controlling question of law as
to which there is substantial ground for difference of
opinion; and
``(ii) an immediate appeal from such order may materially
advance the ultimate termination of such case or such
proceeding; or
``(B) the court of appeals that would have jurisdiction of
an appeal of a final order entered in such case or such
proceeding permits, in its discretion, appeal to be taken
from such interlocutory order.''; and
(3) in--
(A) the table of sections for chapter 6 by striking the
item relating to section 158; and
(B) the table of sections for chapter 83 by inserting after
the item relating to section 1292 the following:

``1293. Bankruptcy appeals.''.

(b) Conforming Amendments.--(1) Section 305(c) of title 11,
the United States Code, is amended by striking ``158(d),
1291, or 1292'' and inserting ``1291, 1292, or 1293''.
(2) Title 28, United States Code, is amended--
(A) in subsections (b)(1) and (c)(2) of section 157 by
striking ``section 158'' and inserting ``section 1293'';
(B) in section 1334(d) by striking ``158(d), 1291, or
1292'' and inserting ``1291, 1292, or 1293''; and
(C) in section 1452(b) by striking ``158(d), 1291, or
1292'' and inserting ``1291, 1292, or 1293''.

SEC. 411. ESTABLISHMENT OF OFFICIAL FORMS.

The Judicial Conference of the United States shall
establish official forms to facilitate compliance with the
amendments made by sections 101 and 102.

SEC. 412. ELIMINATION OF CERTAIN FEES PAYABLE IN CHAPTER 11
BANKRUPTCY CASES.

(a) Amendments.--Section 1930(a)(6) of title 28, United
States Code, is amended--
(1) in the 1st sentence by striking ``until the case is
converted or dismissed, whichever occurs first'', and
(2) in the 2d sentence--
(A) by striking ``The'' and inserting ``Until the plan is
confirmed or the case is converted (whichever occurs first)
the'', and

[[Page H4422]]

(B) by striking ``less than $300,000;'' and inserting
``less than $300,000. Until the case is converted, dismissed,
or closed (whichever occurs first and without regard to
confirmation of the plan) the fee shall be''.
(b) Delayed Effective Date.--The amendments made by
subsection (a) shall take effect on October 1, 1999.

Subtitle B--Data Provisions

SEC. 441. IMPROVED BANKRUPTCY STATISTICS.

(a) Amendment.--Title 28, United States Code, is amended by
adding after section 158 the following new section:

``Sec. 159. Bankruptcy statistics

``The Director of the Executive Office for United States
Trustees shall compile statistics regarding individual
debtors with primarily consumer debts seeking relief under
chapters 7, 11, and 13 of title 11. Such statistics shall be
in a form prescribed by the Executive Office for United
States Trustees in consultation with the Administrative
Office of the United States Courts. The Office shall compile
such statistics, and make them public, and report annually to
the Congress on the information collected, and on its
analysis thereof, no later than October 31 of each year. Such
compilation shall be itemized by chapter of title 11, shall
be presented in the aggregate and for each district, and
shall include the following:
``(1) Total assets and total liabilities of such debtors,
and in each category of assets and liabilities, as reported
in the schedules prescribed pursuant to section 2075 of this
title and filed by such debtors.
``(2) The current total monthly income, projected monthly
net income, and average income and average expenses of such
debtors as reported on the schedules and statements the
debtor has filed under sections 111, 521, and 1322 of title
11.
``(3) 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.
``(4) The average time between the filing of the petition
and the closing of the case.
``(5) The number of cases in the reporting period in which
a reaffirmation was filed and the total number of
reaffirmations filed in that period, and of those cases in
which a reaffirmation was filed, the number in which the
debtor was not represented by an attorney, and of those the
number of cases in which the reaffirmation was approved by
the court.
``(6) With respect to cases filed under chapter 13 of title
11--
``(A) the number of cases in which a final order was
entered determining the value of property securing a claim
less than the claim, and the total number of such orders in
the reporting period; and
``(B) the number of cases dismissed for failure to make
payments under the plan.
``(7) The number of cases in which the debtor filed another
case within the 6 years previous to the filing.''.
(b) Effective Date.--The amendment made by subsection (a)
shall take effect 18 months after the date of the enactment
of this Act.

SEC. 442. BANKRUPTCY DATA.

(a) Amendment.--Title 28 of the United States Code is
amended by inserting after section 589a the following:

``Sec. 589b. Bankruptcy data

``(a) Rules.--The Attorney General shall, within a
reasonable time after the effective date of this section,
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) Reports.--All reports 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 possible access of the
public, both by physical inspection at 1 or more central
filing locations, and by electronic access through the
Internet or other appropriate media.
``(c) Required Information.--The information required to be
filed in the reports referred to in subsection (b) shall be
that which is in the best interests of debtors and creditors,
and in the public interest in reasonable and adequate
information to evaluate the efficiency and practicality of
the Federal bankruptcy system. In issuing rules proposing the
forms referred to in subsection (a), the Attorney General
shall strike the best achievable practical balance between--
``(1) the reasonable needs of the public for information
about the operational results of the Federal bankruptcy
system; and
``(2) economy, simplicity, and lack of undue burden on
persons with a duty to file reports.
``(d) Final Reports.--Final reports proposed for adoption
by trustees under chapters 7, 12, and 13 of title 11 shall,
in addition to such other matters as are required by law or
as the Attorney General in the discretion of the Attorney
General, shall propose, include with respect to a case under
such title--
``(1) information about the length of time the case was
pending;
``(2) assets abandoned;
``(3) assets exempted;
``(4) receipts and disbursements of the estate;
``(5) expenses of administration;
``(6) claims asserted;
``(7) claims allowed; and
``(8) distributions to claimants and claims discharged
without payment;
in each case by appropriate category and, in cases under
chapters 12 and 13 of title 11, date of confirmation of the
plan, each modification thereto, and defaults by the debtor
in performance under the plan.
``(e) Periodic Reports.--Periodic reports proposed for
adoption by trustees or debtors in possession under chapter
11 of title 11 shall, in addition to such other matters as
are required by law or as the Attorney General, in the
discretion of the Attorney General, shall propose, include--
``(1) information about the standard industry
classification, published by the Department of Commerce, for
the businesses conducted by the debtor;
``(2) length of time the case has been pending;
``(3) number of full-time employees as at the date of the
order for relief and at end of each reporting period since
the case was filed;
``(4) cash receipts, cash disbursements and profitability
of the debtor for the most recent period and cumulatively
since the date of the order for relief;
``(5) 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;
``(6) 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, in 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 not); and
``(7) 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.''.
(b) Technical Amendment.--The table of sections of chapter
39 of title 28, United States Code, is amended by adding at
the end the following:

``589b. Bankruptcy data.''.

SEC. 443. SENSE OF THE CONGRESS REGARDING AVAILABILITY OF
BANKRUPTCY DATA.

It is the sense of the Congress that--
(1) the national policy of the United States should be 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 of the 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 V--TAX PROVISIONS

SEC. 501. 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

[[Page H4423]]

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. 502. 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 507(a)(7) of this title'' before the semicolon at
the end.

SEC. 503. EFFECTIVE NOTICE TO GOVERNMENT.

(a) Effective Notice to Governmental Units.--Section 342 of
title 11, United States Code, as amended by section 405, is
amended by adding at the end the following:
``(g) If a debtor lists a governmental unit as a creditor
in a list or schedule, any notice required to be given by the
debtor under this title, any rule, any applicable law, or any
order of the court, shall identify the department, agency, or
instrumentality through which the debtor is indebted. The
debtor shall identify (with information such as a taxpayer
identification number, loan, account or contract number, or
real estate parcel number, where applicable), and describe
the underlying basis for the governmental unit's claim. If
the debtor's liability to a governmental unit arises from a
debt or obligation owed or incurred by another individual,
entity, or organization, or under a different name, the
debtor shall identify such individual, entity, organization,
or name.
``(h) The clerk shall keep and update quarterly, in the
form and manner as the Director of the Administrative Office
of the United States Courts prescribes, and make available to
debtors, a register in which a governmental unit may
designate a safe harbor mailing address for service of notice
in cases pending in the district. A governmental unit may
file a statement with the clerk designating a safe harbor
address to which notices are to be sent, unless such
governmental unit files a notice of change of address.''.
(b) Adoption of Rules Providing Notice.--The Advisory
Committee on Bankruptcy Rules of the Judicial Conference
shall, within a reasonable period of time after the date of
the enactment of this Act, propose for adoption enhanced
rules for providing notice to State, Federal, and local
government units that have regulatory authority over the
debtor or which may be creditors in the debtor's case. Such
rules shall be reasonably calculated to ensure that notice
will reach the representatives of the governmental unit, or
subdivision thereof, who will be the proper persons
authorized to act upon the notice. At a minimum, the rules
should require that the debtor--
(1) identify in the schedules and the notice, the
subdivision, agency, or entity in respect of which such
notice should be received;
(2) provide sufficient information (such as case captions,
permit numbers, taxpayer identification numbers, or similar
identifying information) to permit the governmental unit or
subdivision thereof, entitled to receive such notice, to
identify the debtor or the person or entity on behalf of
which the debtor is providing notice where the debtor may be
a successor in interest or may not be the same as the person
or entity which incurred the debt or obligation; and
(3) identify, in appropriate schedules, served together
with the notice, the property in respect of which the claim
or regulatory obligation may have arisen, if any, the nature
of such claim or regulatory obligation and the purpose for
which notice is being given.
(c) Effect of Failure of Notice.--Section 342 of title 11,
United States Code, as amended by subsection (a) and section
405, is amended by adding at the end the following:
``(i)(1) A notice that does not comply with subsections (d)
and (e) shall have no effect unless the debtor demonstrates,
by clear and convincing evidence, that timely notice was
given in a manner reasonably calculated to satisfy the
requirements of this section was given, and that--
``(A) either the notice was timely sent to the safe harbor
address provided in the register maintained by the clerk of
the district in which the matter or proceeding with respect
to which the notice was provided was pending for such
purposes; or
``(B) no safe harbor address was provided in such list for
the governmental unit and that an officer of the governmental
unit who is responsible for the matter or claim had actual
knowledge of the case in sufficient time to act or the
taxpayer made a good faith effort to provide the required
notice under subsections (d) and (e).
``(2) No sanction under section 362(h) of this title or any
other sanction which a court may impose on account of
violations of the stay under section 362(a) of this title or
failure to comply with section 542 or 543 of this title may
be imposed unless the action takes place after notice of the
commencement of the case as required by this section has been
received.''.

SEC. 504. NOTICE OF REQUEST FOR A DETERMINATION OF TAXES.

Section 505(b) of title 11, United States Code, is amended
by striking ``Unless'' at the beginning of the second
sentence thereof and inserting ``If the request is made in
the manner designated by the governmental unit and the taxing
authority has place in file with the clerk of the court a
description of the manner in which the governmental unit
requires such request and unless''.

SEC. 505. RATE OF INTEREST ON TAX CLAIMS.

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

``Notwithstanding any provision of this title that requires
the payment of interest on a claim, if interest is required
to be paid on a tax claim, the rate of interest shall be as
follows:
``(1) In the case of ad valorem tax claims, whether secured
or unsecured, other unsecured tax claims where interest is
required to be paid under section 726(a)(5) of this title and
secured tax claims the rate shall be determined under
applicable nonbankruptcy law.
``(2) In the case of unsecured claims for taxes arising
before the date of the order for relief and paid under a plan
of reorganization, the minimum rate of interest to be applied
during the period after the filing of the petition shall be
the Federal short-term rate rounded to the nearest full
percent, determined under section 1274(d) of the Internal
Revenue Code of 1986, for the calendar month in which the
plan is confirmed, plus 3 percentage points.''.

SEC. 506. TOLLING OF PRIORITY OF TAX CLAIM TIME PERIODS.

Section 507(a)(9)(A) of title 11, United States Code, as so
redesignated, is amended--
(1) in clause (i) by inserting after ``petition'' and
before the semicolon ``, plus any time, plus 6 months, during
which the stay of proceedings was in effect in a prior case
under this title''; and
(2) amend clause (ii) to read as follows:
``(ii) assessed within 240 days before the date of the
filing of the petition, exclusive of--

``(I) any time plus 30 days during which an offer in
compromise with respect of such tax, was pending or in effect
during such 240-day period;
``(II) any time plus 30 days during which an installment
agreement with respect of such tax was pending or in effect
during such 240-day period, up to 1 year; and
``(III) any time plus 6 months during which a stay of
proceedings against collections was in effect in a prior case
under this title during such 240-day period.''.

SEC. 507. ASSESSMENT DEFINED.

(a) Assessment Defined for Priority Purposes.--Section 101
of title 11, United States Code, is amended by inserting
after paragraph (2) the following:
``(3) `assessment'--
``(A) for purposes of State and local taxes, means that
point in time when all actions required have been taken so
that thereafter a taxing authority may commence an action to
collect the tax, and
``(B) for Federal tax purposes has the meaning given such
term in the Internal Revenue Code of 1986;

and `assessed' and `assessable' shall be interpreted in light
of the definition of assessment in this paragraph;''.
(b) Assessment Defined for the Stay of Proceedings.--
Section 362(b)(9)(D) of title 11, United States Code, is
amended by inserting after ``the making of an assessment''
the following: ``as defined by applicable nonbankruptcy law
notwithstanding the definition of an `assessment' elsewhere
in this title''.

SEC. 508. CHAPTER 13 DISCHARGE OF FRAUDULENT AND OTHER TAXES.

Section 1328(a)(2) of title 11, United States Code, is
amended by inserting ``(1) to the extent that the debtor made
a fraudulent return or fraudulently attempted in any manner
to evade such taxes,'' after ``paragraph''.

SEC. 509. CHAPTER 11 DISCHARGE OF FRAUDULENT TAXES.

Section 1141(d) of title 11, United States Code, as amended
by section 119A, is amended by adding at the end the
following:
``(6) Notwithstanding the provisions of paragraph (1), the
confirmation of a plan does not discharge a debtor which is a
corporation from any debt for a tax or customs duty with
respect to which the debtor made a fraudulent return or
willfully attempted in any manner to evade or defeat such
tax.''.

SEC. 510. THE STAY OF TAX PROCEEDINGS.

(a) The Section 362 Stay Limited to Prepetition Taxes.--
Section 362(a)(8) of title 11, United States Code, is amended
by striking the period at the end and inserting ``, in
respect of a tax liability for a taxable period ending before
the order for relief.''.
(b) The Appeal of Tax Court Decisions Permitted.--Section
362(b)(9) of title 11, United States Code, is amended--
(1) in subparagraph (C) by striking ``or'' at the end,
(2) in subparagraph (D) by striking the period at the end
and inserting ``; or'', and
(3) by adding at the end the following:
``(E) the appeal of a decision by a court or administrative
tribunal which determines a tax liability of the debtor
without regard to whether such determination was made
prepetition or postpetition.''.

SEC. 511. 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; and
(2) in subparagraph (C)--
(A) by striking ``deferred cash payments, over a period not
exceeding six years after the date of assessment of such
claim,'' and inserting ``regular installment payments in
cash, but in no case with a balloon provision, and no more
than three months apart, beginning no later than the
effective date of the plan and ending on the earlier of five
years

[[Page H4424]]

after the petition date or the last date payments are to be
made under the plan to unsecured creditors,'';
(B) by striking the period at the end and inserting ``;
and''; and
(3) by adding at the end the following:
``(D) with respect to a secured claim which would be
described in section 507(a)(8) of this title but for its
secured status, the holder of such claim will receive on
account of such claim cash payments of not less than is
required in subparagraph (C) and over a period no greater
than is required in such subparagraph.''.

SEC. 512. THE 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
where such purchaser is a purchaser described in section 6323
of the Internal Revenue Code of 1986 or similar provision of
State or local law;''.

SEC. 513. 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) Such taxes shall be paid when due in the conduct of
such business unless--
``(1) the tax is a property tax secured by a lien against
property that is abandoned within a reasonable time after the
lien attaches, by the trustee of a bankruptcy estate,
pursuant to 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, the court has made 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 such tax.''.
(b) Payment of Ad Valorem Taxes Required.--Section
503(b)(1)(B) of title 11, United States Code, is amended in
clause (i) by inserting after ``estate,'' and before
``except'' the following: ``whether secured or unsecured,
including property taxes for which liability is in rem only,
in personam or both,''.
(c) Request for Payment of Administrative Expense Taxes
Eliminated.--Section 503(b)(1) of title 11, United States
Code, is amended by adding at the end the following:
``(D) notwithstanding the requirements of subsection (a) of
this section, a governmental unit shall not be required to
file a request for the payment of a claim described in
subparagraph (B) or (C);''.
(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 in respect of the
property'' before the period at the end.

SEC. 514. 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
``on or before the earlier of 10 days after the mailing to
creditors of the summary of the trustee's final report or the
date on which the trustee commences final distribution under
this section''.

SEC. 515. INCOME TAX RETURNS PREPARED BY TAX AUTHORITIES.

Section 523(a)(1)(B) of title 11, United States Code, is
amended--
(1) by inserting ``or equivalent report or notice,'' after
``a return,'';
(2) in clause (i)--
(A) by inserting ``or given'' after ``filed''; and
(B) by striking ``or'' at the end;
(3) in clause (ii)--
(A) by inserting ``or given'' after ``filed'';
(B) by inserting ``, report, or notice'' after ``return'';
and
(4) by adding at the end the following:
``(iii) for purposes of this subsection, a return--

``(I) must satisfy the requirements of applicable
nonbankruptcy law, and 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 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 similar State or local law,
and
``(II) must have been filed in a manner permitted by
applicable nonbankruptcy law; or''.

SEC. 516. THE DISCHARGE OF THE ESTATE'S LIABILITY FOR UNPAID
TAXES.

Section 505(b) of title 11, United States Code, is amended
in the second sentence by inserting ``the estate,'' after
``misrepresentation,''.

SEC. 517. 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 146, 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 adding at the end the following:
``(8) if the debtor has filed all Federal, State, and local
tax returns as required by section 1308 of this title.''.
(b) Additional Time Permitted for Filing Tax Returns.--(1)
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) On or before the day prior to the day on which the
first meeting of the creditors is convened under section
341(a) of this title, the debtor shall have filed with
appropriate tax authorities all tax returns for all taxable
periods ending in the 6-year period ending on the date of
filing of the petition which the debtor had been required to
file under applicable nonbankruptcy law.
``(b) If the tax returns required by subsection (a) have
not been filed by the date on which the first meeting of
creditors is convened under section 341(a) of this title, the
trustee may continue such meeting for a reasonable period of
time, to allow the debtor additional time to file any unfiled
returns, but such additional time shall be no more than--
``(1) for returns that are past due as of the date of the
filing of the petition, 120 days from such date,
``(2) for returns which are not past due as of the date of
the filing of the petition, the later of 120 days from such
date or the due date for such returns under the last
automatic extension of time for filing such returns to which
the debtor is entitled, and for which request has been timely
made, according to applicable nonbankruptcy law, and
``(3) upon notice and hearing, and order entered before the
lapse of any deadline fixed according to this subsection,
where the debtor demonstrates, by clear and convincing
evidence, that the failure to file the returns as required is
because of circumstances beyond the control of the debtor,
the court may extend the deadlines set by the trustee as
provided in this subsection for--
``(A) a period of no more than 30 days for returns
described in paragraph (1) of this subsection, and
``(B) for no more than the period of time ending on the
applicable extended due date for the returns described in
paragraph (2).
``(c) For purposes of this section only, a return includes
a return prepared pursuant to section 6020 (a) or (b) of the
Internal Revenue Code of 1986 or similar State or local law,
or a written stipulation to a judgment entered by a
nonbankruptcy tribunal.''.
(2) The table of sections of 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 tax returns
under section 1308 of this title, 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 interests of creditors and the
estate.''.
(d) Timely Filed Claims.--Section 502(b)(9) of title 11,
United States Code, is amended by striking the period at the
end and inserting ``, and except that in a case under chapter
13 of this title, a claim of a governmental unit for a tax in
respect of a return filed under section 1308 of this title
shall be timely if it is filed on or before 60 days after
such return or returns were 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, within a
reasonable period of time after the date of the 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, a
governmental unit may object to the confirmation of a plan on
or before 60 days after the debtor files all tax returns
required under sections 1308 and 1325(a)(7) of title 11,
United States Code, 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 in respect of a return required to be
filed under such section 1308 shall be filed until such
return has been filed as required.

SEC. 518. STANDARDS FOR TAX DISCLOSURE.

Section 1125(a) of title 11, United States Code, is amended
in paragraph (1)--
(1) by inserting after ``records,'' the following:
``including a full discussion of the potential material
Federal, State, and local tax consequences of the plan to the
debtor, any successor to the debtor, and a hypothetical
investor domiciled in the State in which the debtor resides
or has its principal place of business typical of the holders
of claims or interests in the case,'',
(2) by inserting ``such'' after ``enable'', and
(3) by striking ``reasonable'' where it appears after
``hypothetical'' and by striking ``typical of holders of
claims or interests'' after ``investor''.

[[Page H4425]]

SEC. 519. SETOFF OF TAX REFUNDS.

Section 362(b) of title 11, United States Code, as amended
by sections 130, 146, and 150 is amended--
(1) in paragraph (17) by striking ``or'',
(2) in paragraph (18) by striking the period at the end and
inserting ``; or'', and
(3) by inserting after paragraph (18) the following:
``(19) under subsection (a) of the setoff of an income tax
refund, by a governmental unit, in respect of a taxable
period which ended before the order for relief against an
income tax liability for a taxable period which also ended
before the order for relief, unless prior to such setoff the
debt is listed by the debtor as disputed, contingent, or
unliquidated.''.

TITLE VI--ANCILLARY AND OTHER CROSS-BORDER CASES

SEC. 601. AMENDMENT TO ADD A CHAPTER 6 TO TITLE 11, UNITED
STATES CODE.

(a) In General.--Title 11, United States Code, is amended
by inserting after chapter 5 the following:

``CHAPTER 6--ANCILLARY AND OTHER CROSS-BORDER CASES

``Sec.
``601. Purpose and scope of application.

``SUBCHAPTER I--GENERAL PROVISIONS

``602. Definitions.
``603. International obligations of the United States.
``604. Commencement of ancillary case.
``605. Authorization to act in a foreign country.
``606. Public policy exception.
``607. Additional assistance.
``608. Interpretation.

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

``609. Right of direct access.
``610. Limited jurisdiction.
``611. Commencement of bankruptcy case under section 301 or 303.
``612. Participation of a foreign representative in a case under this
title.
``613. Access of foreign creditors to a case under this title.
``614. Notification to foreign creditors concerning a case under this
title.

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

``615. Application for recognition of a foreign proceeding.
``616. Presumptions concerning recognition.
``617. Order recognizing a foreign proceeding.
``618. Subsequent information.
``619. Relief that may be granted upon petition for recognition of a
foreign proceeding.
``620. Effects of recognition of a foreign main proceeding.
``621. Relief that may be granted upon recognition of a foreign
proceeding.
``622. Protection of creditors and other interested persons.
``623. Actions to avoid acts detrimental to creditors.
``624. Intervention by a foreign representative.

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

``625. Cooperation and direct communication between the court and
foreign courts or foreign representatives.
``626. Cooperation and direct communication between the trustee and
foreign courts or foreign representatives.
``627. Forms of cooperation.

``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``628. Commencement of a case under this title after recognition of a
foreign main proceeding.
``629. Coordination of a case under this title and a foreign
proceeding.
``630. Coordination of more than 1 foreign proceeding.
``631. Presumption of insolvency based on recognition of a foreign main
proceeding.
``632. Rule of payment in concurrent proceedings.

``Sec. 601. 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 where--
``(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); or
``(2) an individual, or to an individual and such
individual's spouse, who have debts within the limits
specified in under section 109(e) and who are citizens of the
United States or aliens lawfully admitted for permanent
residence in the United States.

``SUBCHAPTER I--GENERAL PROVISIONS

``Sec. 602. 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
chapters 9 or 13 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. 603. 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. 604. 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 615.

``Sec. 605. Authorization to act in a foreign country

``A trustee or another entity (including an examiner)
authorized by the court 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. 606. 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. 607. Additional assistance

``(a) Nothing in this chapter limits the power of the
court, upon recognition of a foreign proceeding, to 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. 608. 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. 609. Right of direct access

``(a) A foreign representative is entitled to commence a
case under section 604 by filing a petition for recognition
under section 615, and upon recognition, to apply directly to
other Federal and State courts for appropriate relief in
those courts.

[[Page H4426]]

``(b) Upon recognition, and subject to section 610, a
foreign representative has the capacity to sue and be sued,
and shall be subject to the laws of the United States of
general applicability.
``(c) Recognition under this chapter is prerequisite to the
granting of comity or cooperation to a foreign proceeding in
any State or Federal court in the United States. Any request
for comity or cooperation in any court shall be accompanied
by a sworn statement setting forth whether recognition under
section 615 has been sought and the status of any such
petition.
``(d) 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. 610. Limited jurisdiction

``The sole fact that a foreign representative files a
petition under sections 615 does not subject the foreign
representative to the jurisdiction of any court in the United
States for any other purpose.

``Sec. 611. Commencement of case under section 301 or 303

``(a) Upon filing a petition for 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)
of this section 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) of this section prior to such
commencement.
``(c) A case under subsection (a) shall be dismissed unless
recognition is granted.

``Sec. 612. 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. 613. 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) of this section does not change or
codify present law as to the priority of claims under section
507 or 726 of this title, except that the claim of a foreign
creditor under those sections 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) of this section and paragraph (1)
of this subsection do not change or codify present law 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. 614. 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. 615. 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. 616. Presumptions concerning recognition

``(a) If the decision or certificate referred to in section
615(b) indicates that the foreign proceeding is a foreign
proceeding within the meaning of section 101(23) and that the
person or body is a foreign representative within the meaning
of section 101(24), 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. 617. Order recognizing a foreign proceeding

``(a) Subject to section 606, 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
602;
``(2) the foreign representative applying for recognition
is a person or body within the meaning of section 101(24);
and
``(3) the petition meets the requirements of section 615.
``(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 602 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. 618. Subsequent information

``From the time of filing the petition for recognition of
the foreign proceeding, 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. 619. Relief that may be granted upon petition for
recognition of a foreign proceeding

``(a) From the time of filing a petition for recognition
until 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 621(a).
``(b) Unless extended under section 621(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. 620. 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; and

[[Page H4427]]

``(2) transfer, 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.

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) of this
section 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) of this section 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) of this section 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. 621. 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 they have not been stayed under section 620(a);
``(2) staying execution against the debtor's assets to the
extent it has not been stayed under section 620(a);
``(3) suspending the right to transfer, encumber or
otherwise dispose of any assets of the debtor to the extent
this right has not been suspended under section 620(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 619(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, provided that 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. 622. Protection of creditors and other interested
persons

``(a) In granting or denying relief under section 619 or
621, or in modifying or terminating relief under subsection
(c) of this section, the court must find that the interests
of the creditors and other interested persons or entities,
including the debtor, are sufficiently protected.
``(b) The court may subject relief granted under section
619 or 621 to conditions it considers appropriate.
``(c) The court may, at the request of the foreign
representative or an entity affected by relief granted under
section 619 or 621, or at its own motion, modify or terminate
such relief.

``Sec. 623. Actions to avoid acts detrimental to creditors

``(a) Upon recognition of a foreign proceeding, the foreign
representative has standing in a pending case under another
chapter of this title to initiate actions under sections 522,
544, 545, 547, 548, 550, and 724(a).
``(b) When the foreign proceeding is a foreign nonmain
proceeding, the court must be satisfied that an action under
subsection (a) of this section relates to assets that, under
United States law, should be administered in the foreign
nonmain proceeding.

``Sec. 624. 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. 625. Cooperation and direct communication between the
court and foreign courts or foreign representatives

``(a) In all matters included within section 601, 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. 626. Cooperation and direct communication between the
trustee and foreign courts or foreign representatives

``(a) In all matters included in section 601, 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,
designated by the court is entitled, subject to the
supervision of the court, to communicate directly with
foreign courts or foreign representatives.
``(c) 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. 627. Forms of cooperation

``Cooperation referred to in sections 625 and 626 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. 628. 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
that 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 625, 626, and 627, to other
assets of the debtor that are within the jurisdiction of the
court under sections 541(a) of this title, 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. 629. Coordination of a case under this title and a
foreign proceeding

``Where 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 625, 626, and 627, and the
following shall apply:
``(1) When 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 619 or 621 must be
consistent with the case in the United States; and
``(B) even if the foreign proceeding is recognized as a
foreign main proceeding, section 620 does not apply.
``(2) When 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 619 or 621 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
620(a) shall be modified or terminated if inconsistent with
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 628 and 629, the court may grant any of the relief
authorized under section 305.

``Sec. 630. Coordination of more than 1 foreign proceeding

``In matters referred to in section 601, with respect to
more than 1 foreign proceeding regarding the debtor, the
court shall seek cooperation and coordination under sections
625, 626, and 627, and the following shall apply:
``(1) Any relief granted under section 619 or 621 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

[[Page H4428]]

a petition for recognition, of a foreign nonmain proceeding,
any relief in effect under section 619 or 621 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. 631. 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.

``Sec. 632. 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 5 the following:

``6. Ancillary and Other Cross-Border Cases..................601''.....

SEC. 602. 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, 555 through 557,
559, and 560 apply in a case under chapter 6''; and
(2) by adding at the end the following:
``(j) Chapter 6 applies only in a case under that chapter,
except that section 605 applies to trustees and to any other
entity authorized by the court, including an examiner, under
chapters 7, 11, and 12, to debtors in possession under
chapters 11 and 12, and to debtors or trustees under chapters
9 and 13 who are authorized to act under section 605.''.
(b) Definitions.--Section 101 of title 11, United States
Code, is amended by striking paragraphs (23) and (24) and
inserting the following:
``(23) `foreign proceeding' means a collective judicial or
administrative proceeding in a foreign state, 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 6 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 6 of title 11, nothing in''.
(3) Duties of trustees.--Section 586(a)(3) of title 28,
United States Code, is amended by inserting ``6,'' after
``chapter''.

TITLE VII--MISCELLANEOUS

SEC. 701. TECHNICAL AMENDMENTS.

Title 11 of the United States Code is amended--
(1) in section 109(b)(2) by striking ``subsection (c) or
(d) of'';
(2) in section 541(b)(4) by adding ``or'' at the end; and
(3) in section 552(b)(1) by striking ``product'' each place
it appears and inserting ``products''.

SEC. 702. APPLICATION OF AMENDMENTS.

The amendments made by this Act shall apply only with
respect to cases commenced under title 11 of the United
States Code after the date of the enactment of this Act.

The CHAIRMAN pro tempore. Pursuant to House Resolution 462, the
gentleman from New York (Mr. Nadler) and a Member opposed each will
control 30 minutes.
The Chair recognizes the gentleman from New York (Mr. Nadler).
Mr. NADLER. Mr. Chairman, I yield myself such time as I may consume.
(Mr. NADLER asked and was given permission to revise and extend his
remarks.)
Mr. NADLER. Mr. Chairman, I rise in support of the Democratic
substitute. Unlike the bill before us, H.R. 3150, this bill represents
a balanced and reasoned response to the problems of bankruptcy abuse by
debtors as well as by creditors.
What does this substitute do? First, the substitute strikes the
bureaucratic inflexible means testing provisions of the bill and
provides, instead, for a strengthened dismissal procedure based on the
debtor's actual income and expenses.
Under the substitute, trustees as well as the courts and the United
States trustees could seek dismissal of a bankruptcy case involving
families with incomes over $60,000. This deals with the problems of
bankruptcy abuse in a reasonable manner while taking in account such
important items as child care payments, health care costs, the cost of
taking care of ill parents and educational expenses.

{time} 1700

I might add, Mr. Chairman, it changes in two fundamental ways the
means testing provisions of the bill before us.
First, it has a human being in it. I believe in human beings. We
believe in human beings on this side of the aisle. It has a judge. If
someone thinks that this person can pay, has the ability to pay his
debts and ought not to be allowed to have a discharge under Chapter 7,
fine, convince the judge. This provides pretty strong procedures of
what you have to prove to get into Chapter 7 to get your discharge, but
there is a judge to judge it. It is not an automatic filing that goes
into a computer, as it is in the bill.
Second, it makes the commonsense observation that if the question is,
can this debtor afford to repay his debts, as opposed to getting a
discharge, it has practical, specific questions: What is his income?
What is his assets? What are his expenses? How much rent does he pay?
How much child support obligation does he owe per month?
Not, as in the bill before us, what is the average rent that the
Internal Revenue Service thinks someone ought to pay in the northeast
or southwest United States; not what does the average person, according
to the IRS, what they think the average person might be paying for
child support. Who cares? The question is this person in front of us,
how much can he afford to pay, what are his real expenses, how much is
left over for debt service. This applies that kind of a traditional
test, instead of a fictitious test dealing with a fictitious average
person who does not exist.
Third, the substitute eliminates provisions making significant
amounts of credit card debt nondischargeable in bankruptcy, pitting
these aggressive and sophisticated creditors in direct competition with
child support, alimony, spouse support, and victim support.
After first denying that a problem ever existed, the majority has
come up with a series of toothless and meaningless fixes. The
substitute responds to the real problem by protecting against giving
increased money to credit card companies at the expense of alimony and
child support.
The substitute also modifies the business provisions of the bill,
which impose massive new legal and paperwork burdens on small business
and real estate concerns and will cost our economy thousands of jobs.
In a letter opposing H.R. 3150 written today and which I referred to
earlier today, the AFL-CIO has stated that H.R. 3150 ``threatens jobs
by placing substantial procedural barriers in the way of small business
access to the protections of Chapter 11.''
As I also read earlier, the Small Business Administration says the
same thing, and the National Bankruptcy Conference says the same thing.
This removes that. In addition, the substitute adds a new provision
protecting charitable contributions in Chapter 11 and Chapter 12 cases.
The bill in front of us protects tithing only in Chapter 7 and
Chapter 13 cases. There is no provision allowing individuals and
corporations to utilize Chapter 11 or family farmers to utilize Chapter
12 to continue to make religious and other charitable deductions before
and in and after bankruptcy. The substitute is the only proposal which
fully protects these charitable contributions. I might add, the halfway
drafting of the tithing provisions of the bill in front of us is a
symptom of the hasty manner in which this bill was drafted, the sloppy
manner in which it was drafted, without proper review.

[[Page H4429]]

We were told time and time again by all the organizations that deal
with bankruptcy about how hasty this was, how hasty the process, how
sloppily drafted. We kept telling the committee leadership, slow down
the process, but they did not. The fact that they forgot to put in
Chapter 11, the fact that they forgot to put in Chapter 12 in the
tithing provisions is just one obvious example of the sloppy drafting
of this bill and hasty drafting of this bill.
The substitute also adds a provision specifying that the new post-
bankruptcy priorities for alimony and child support apply to benefit
creditors who are drunk driving victims and victims of crime or willful
or malicious injury, also. The bill in front of us only grants these
new post-bankruptcy priorities to alimony and child support creditors,
and completely ignores innocent victims of crime and drunk driving who,
under the bill, are forced to compete with aggressive credit card
companies in the post-discharge situation.
In addition, the substitute goes much further than H.R. 3150 in
protecting family farmers, because it strikes language making it far
easier for banks to foreclose on family farms. Again, the Democratic
substitute is the only amendment which offers the Members a chance to
stand squarely behind our farmers at a time when they face massive new
challenges.
The substitute retains the vast majority of the other provisions in
the majority bill. It offers significant new benefits to banks and
other lenders while protecting women and children and protecting jobs.
In a conscientious, intelligent, realistic fashion, it applies a test
that makes sense in separating out those people who cannot pay their
debts and ought to have a Chapter 7 discharge from those who probably
can, the small minority of those who probably can and should be in a
Chapter 13 workout situation. But the test is realistic, it is based on
facts and on the individual case, not on a theoretical construct of the
Internal Revenue Service.
It boggles my mind that the authors of this bill and the supporters
of this bill, who stood on this floor day after day after day telling
us how insensitive the Internal Revenue Service is to real people, now
think the Internal Revenue Service ought to be running the lives of
Americans caught up in the bankruptcy courts.
So I urge my colleagues to vote yes for the substitute resolution as
a much better substitute to accomplish the professed goal, the claimed
goal, of the legislation, without accomplishing the real effect of the
bill in front of us, which is simply to give a lot of undeserved money
to the credit card companies, instead of to people who need child
support, the victims of crimes, and to debtors in serious situations,
and to other creditors.
Mr. Chairman, I urge a yes vote on this substitute.
Mr. Chairman, I ask unanimous consent that the gentleman from
Massachusetts (Mr. Meehan) may control the balance of the time which I
have been granted.
The CHAIRMAN pro tempore. Is there objection to the request of the
gentleman from New York?
There was no objection.
Mr. NADLER. Mr. Chairman, I reserve the balance of my time.
The CHAIRMAN pro tempore. Does any Member rise in opposition to the
amendment?
Mr. GEKAS. Mr. Chairman, I rise in opposition to the amendment.
The CHAIRMAN pro tempore. The gentleman from Pennsylvania (Mr. Gekas)
is recognized for 30 minutes.
Mr. GEKAS. Mr. Chairman, I yield myself such time as I may consume.
As I mentioned before, Mr. Chairman, throughout the time that he has
served on our subcommittee, the gentleman from Tennessee (Mr. Bryant)
has been a semi and maybe a complete expert on some of the matters that
have come before us with respect to bankruptcy, and in particular, with
bankruptcy trustees and their work.
That is why it pleases me to see him continue to be energetic in the
development of this legislation.
Mr. Chairman, I yield such time as he may consume to the gentleman
from Tennessee (Mr. Bryant).
Mr. BRYANT. Mr. Chairman, I thank the gentleman for yielding me the
time.
Mr. Chairman, I rise at this time to engage the gentleman from
Pennsylvania (Mr. Gekas) in a colloquy in regard to an issue that is
very important to my State.
Mr. GEKAS. Mr. Chairman, will the gentleman yield?
Mr. BRYANT. I yield to the gentleman from Pennsylvania.
Mr. GEKAS. I will be glad to do so, Mr. Chairman.
Mr. BRYANT. Mr. Chairman, as the gentleman from Pennsylvania knows, I
have been contacted by several Tennessee financial institutions which
are concerned about the amount of time allowed to record a lien on a
vehicle refinance.
Current law allows creditors only 10 days from the loan origination
to record a lien. This is difficult, since it requires paying off the
lienholder, receiving the title back from the lienholder, and
submitting the paperwork to the State for processing.
In Tennessee a lien filed in the proper time normally will result in
a lien date corresponding to the loan date. If the State receives the
lien application outside the time parameter, then the lien date
corresponds to the application received date.
Trustees have become more aggressive in bankruptcy in pursuing assets
that are in bankruptcy. If a lien is recorded out of that allowed
period, the court will strip the refinancing institution of its lien,
take possession of the vehicle, and use the proceeds to satisfy
creditors in that bankruptcy. The refinancing institution then becomes
an unsecured creditor, and is treated as such.
This is a serious problem, and impacts greatly on the willingness of
financial institutions to create a competitive market in the vehicle
refinance area. Several of Tennessee's financial institutions have
recommended extending the 10-day period to 60 days. I know that the
gentleman from Pennsylvania (Mr. Gekas) has expressed some concern over
the length of this proposed time, but has indicated to me that he would
be willing to work with me on this issue, as the bill moves to
conference with the Senate.
Mr. GEKAS. If the gentleman will continue to yield, Mr. Chairman, the
gentleman is exactly correct. After the gentleman brought this matter
to the attention of the committee, we decided that we were going to try
to work strenuously between now and the time of conference to blend the
gentleman's concerns into the consideration of this bill as it reaches
that stage. We will do so.
Mr. BRYANT. I thank the distinguished chairman.
Mr. GEKAS. Mr. Chairman, I yield 4 minutes to the gentleman from
Indiana (Mr. Roemer).
(Mr. ROEMER asked and was given permission to revise and extend his
remarks.)
Mr. ROEMER. Mr. Chairman, I thank the gentleman for yielding me the
time.
Mr. Chairman, I rise in opposition to the substitute and in support
of the bipartisan bill, the underlying bill, put together by the
gentleman from Pennsylvania (Mr. Gekas) and the gentleman from Virginia
(Mr. Boucher).
Chairman Alan Greenspan testified before Congress today. He said many
great things about the state of our economy. He said we have a record
stock market, record unemployment, the lowest in 28 years. Things are
going extraordinarily well in this country. That is the best of times
and the best of news.
However, today we debate a very serious issue that is possibly the
worst of times. We have had 1.4 million people in 1997 declare
bankruptcy, 1.4 million people. That is more than the combined total
populations of the States of North and South Dakota; more than the
total combined populations of North and South Dakota, two States out of
our 50, equal the number of bankruptcies filed in 1997. That is a
serious problem.
So we have the best of times, according to Chairman Greenspan, and
the worst of times with the number of bankruptcies. Why? There is no
stigma attached to the filing of bankruptcy anymore.
Second, Chapter 7, it is convenient to file in Chapter 7. Chapter 7
should not be as convenient as going into a 7-11. It should be based on
need. It should not be based on convenience.
And, Mr. Chairman, we need to strengthen the emphasis that we have

[[Page H4430]]

in this bill on child support and alimony. The Boucher amendment that
we discussed an hour and a half ago, which was voice voted, that
amendment made child support and alimony the very top priority. It
leapfrogged over 6 or 7 other issues, over farmer's claims and
fishermen's claims.
Now, under that provision and under this bill, then, if passed, child
support and alimony becomes the top priority. It also expands the
definition of household goods to assure that a parent who declares
bankruptcy is not required to give up possessions needed for
childrearing and raising their children, two very important provisions
that show common sense and compassion in this bill.
We also strengthen consumer protections in current law by cracking
down on bankruptcy mills which steer consumers into filing without
information on the consequences of bankruptcy. We expand notice
requirements on alternatives to bankruptcy, and we mandate
participation in credit counseling services.
Mr. Chairman, this is a bill that shows its commitment to personal
responsibility, that is fair to the taxpayer, that says that the
bankruptcy system that exists today should not cost our small
businesses like it does today, should not cost the consumer as it does
today, that should not cost the law-abiding taxpaying citizen as it
does today.
We are reforming that with common sense, we are reforming that with
personal responsibility, and we are reforming that, putting our top
priorities on child support and alimony. That is the basis for reform,
and that is the basis I hope for a bipartisan support for this bill.
Mr. MEEHAN. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I rise in strong support of the Nadler-Meehan-Berman
Democratic substitute, and I do so as a strong supporter of bankruptcy
reform and a strong supporter of means testing.
The choice before us today is clear: We can means test in a manner
that takes debtors who can truly afford to repay their debts and places
them into stable Chapter 13 repayment plans. Or we can means test in a
way that affords aggressive creditors the opportunity to inflict
protracted, contentious, and expensive litigation upon debtors of all
income levels. Unfortunately, H.R. 3150 embodies the latter approach.

{time} 1715

According to the nonpartisan Congressional Research Service, ``H.R.
3150 would inject numerous opportunities for adversarial hearings in
the course of a consumer bankruptcy . . . it is reasonable to
anticipate that in some instances, debtors who cannot afford creditor-
initiated adversarial litigation will acquiesce in reaffirmation
agreements, unreasonable repayment schedules, or just opt out of the
bankruptcy system.''
To make matters worse, H.R. 3150 flat out exempts a large amount of
credit card debt from discharge through bankruptcy, even though this
credit card debt was not actually incurred by fraud. The net result of
these policies is that a substantial amount of credit card debt
currently discharged through bankruptcy would now survive bankruptcy.
This means that there would be a significant increase in the number
of credit card lenders competing for portions of a debtor's limited
postbankruptcy income and assets against women and children owed
alimony and support, victims of intentional torts committed by the
debtor, and a debtor's student loan creditors.
Mr. Chairman, I have not yet heard even a remotely compelling public
policy rationale for making it more difficult than it is already for
women and children to collect alimony and support. Instead, a Dear
Colleague letter was circulated this week that tells us that the
concerns about alimony and support collection are ``rubbish.'' How
interesting.
First we hear there is no child support and alimony problem. That is
what we were told in committee. Then we hear the Committee on the
Judiciary fixed this once nonexistent problem and that the remaining
complaints are ``rubbish.'' Now we are told that certain floor
amendments fixed the initially nonexistent and supposedly solved
problem.
It kind of makes one wonder who is really spewing the ``rubbish.''
The Nadler-Meehan-Berman substitute would address debtor abuses
without dramatically reducing the scope of debts covered by bankruptcy.
It would means-test without permitting aggressive creditors to file
motions against debtors who simply cannot afford to stick up for their
bankruptcy rights. And it strikes the new exceptions to discharge for
credit card debt that have no legitimate public policy justification
and threaten alimony and support collections.
The substitute is the type of reform that the Senate could accept and
the President would sign. I urge my colleagues to support the
substitute.
Mr. Chairman, I reserve the balance of my time.
Mr. GEKAS. Mr. Chairman, I would ask how much time is remaining.
The CHAIRMAN pro tempore (Mr. Calvert). The gentleman from
Pennsylvania (Mr. Gekas) has 23\1/2\ minutes remaining, and the
gentleman from Massachusetts (Mr. Meehan) has 18\1/2\ minutes
remaining.
Mr. GEKAS. Mr. Chairman, I yield 3 minutes to the gentlewoman from
New York (Mrs. Kelly).
Mrs. KELLY. Mr. Chairman, I thank the gentleman from Pennsylvania
(Mr. Gekas) for yielding me this time.
Mr. Chairman, I rise in opposition to the Nadler amendment. H.R.
3150, as written, boils down to two words: personal responsibility. If
we assume a debt, we should do everything in our power to pay it off. A
safety net should remain for those who legitimately cannot pay their
debts. Creditors should be made whole if possible.
Some of my colleagues here today are trying to paint the word
creditors to mean faceless financial institutions who are tricking
consumers into assuming debt. They specifically speak of credit card
debt, but they unfortunately fail to note that credit card debt in the
United States amounts to only 3.7 percent of all consumer debt.
The people who are truly being hurt by our current bankruptcy system
are the Americans who play by the rules and pay their debts. It costs
the average American family an average of $400 a year. Why should they
have to pay? Needs-based bankruptcy reform is well overdue, and that is
what is in H.R. 3150.
Mr. Chairman, the abuses in our bankruptcy system that scream for
reform must be stopped. For example, people currently have the ability
to move to Florida, buy a house for $10 million dollars, declare
bankruptcy, and have all of that house plus additional assets
protected. We have the gentleman from Massachusetts to thank for this
piece of the reform package for his well thought out amendment to this
legislation that passed during committee consideration of this
legislation.
It is these people who game the system that we are trying to stop. It
is unfortunate that in the last two decades the stigma that used to
surround bankruptcy and some people's integrity to honor their debts
has eroded in the United States of America. But it largely for that
reason that in a good economy, bankruptcy filings have jumped 20
percent in 1997 to an all-time high.
I ask all of my colleagues from both sides of the aisle to join me in
opposition to the Nadler amendment and for H.R. 3150, reasonable reform
to means-test bankruptcy eligibility.
Mr. MEEHAN. Mr. Chairman, I yield 5 minutes to the gentlewoman from
Texas (Ms. Jackson-Lee) who has been a leader on the committee on this
issue in fighting for women and children for child support and alimony.
Ms. JACKSON-LEE of Texas. Mr. Chairman, I thank the gentleman from
Massachusetts (Mr. Meehan) for yielding me this time as well as for his
leadership. We, both of us started out on this committee hoping that we
could promote and pass on the floor of the House a bipartisan
bankruptcy bill.
Mr. Chairman, I am delighted to be a cosponsor of the Democratic
substitute which really answers the question: Do we have personal
responsibility in this country? And is it just that people are filing
bankruptcy recklessly with no regard for the responsibility that is
needed?
Why do we not answer the question? Some few years ago those who had a

[[Page H4431]]

debt of maybe some 70 percent or less, 87 percent, in fact, of income
were filing for bankruptcy. Today in 1997, the people who are filing
bankruptcy have over 164 percent of debt. They are holding out every
single day in order to make ends meet in order to be personally
responsible. And the only time they go down to the bankruptcy court is
when they are so desperate to keep their house in order, to keep their
children fed, and to keep themselves above water.
Americans are not recklessly and foolishly filing for bankruptcy.
Yes, there are a few high-profile filers, and we can solve that
problem. The Democratic substitute takes away the means test, but it
has strong provisions for bankruptcy judges to weed out the fraudulent
persons, to determine whether there has been substantial abuse and tell
them, ``Get away from the courthouse door because you do not need to
file bankruptcy.''
Mr. Chairman, these are the people that are filing bankruptcy. Who
else? Families who have more than four children, making $40,000 a year.
Those children will be precluded, or the families will be precluded
from filing for bankruptcy because the means test will kick them
outside of the courthouse door. If Americans have a family of four
making $40,000 a year and for some reason, catastrophic illnesses,
something that has happened in the family, the loss of a job, they will
be forbidden under H.R. 3150 from ever going to the courthouse.
Who else files bankruptcy? Mr. Chairman, 300,000 of those cases are
comprised of men claiming bankruptcy who owe child support and/or
alimony, and 50 percent are cases comprised of women forced into
bankruptcy after being unable to collect alimony.
Are these deadbeats? These are people trying to make ends meet, and
H.R. 3150 does not answer this question. It elevates child support up
to a number one priority, but it still makes nondischargeable all of
those debts, furniture debts and credit card debts, which call time
after time, fighting debtors for their child support because the
debtors do not have the wherewithal and the resources to compete with
the big banks calling them on their job 12 times a day. Mr. Chairman,
they are going to pay the car note and the credit card company, but the
child that needs it and the alimony they needs to be paid, that will
not be paid.
Mr. Chairman, I can say that the real reason behind H.R. 3150 is all
the money that has been put into this whole piece of legislation. If we
could simply focus on what America needs, it needs credit card
counseling. It needs to stop the 2.4 or 2.5 billion contacts made every
year with consumers.
What about this check? ``Charging up credit, Jane Q. Consumer,
$2,500.'' We have seen them in the mail. ``Sign here. It does not
matter. We will cash your check for you.''
I tell my colleagues that the real people in America who are filing
for bankruptcy are people in need. I would like to share some of the
letters and concerns that have been expressed to me.
One, someone who has a catastrophic illness and they are trying to
pay the bills. They have a family, and they are trying to pay the
bills, and that is why they need to go into bankruptcy. Mr. Chairman,
40 percent of senior citizens who file bankruptcy have catastrophic
illness. Sixty percent of filers go into bankruptcy because they have
been unemployed.
Means-testing is truly mean. What we need in real bankruptcy reform
is consumer credit counseling. I have legislation that I will be
offering that will instruct the banks and credit card companies to
provide credit card counseling, personal counseling, and require them
to include that.
What about an 800-number in the credit card bill or solicitation that
says if consumers feel they are abusing credit, they should call this
number? That is what we need for bankruptcy reform, not closing the
door to hard-working Americans making $40,000 a year with four
children; not closing the door on those individuals who are dependent
upon alimony and child support; Not closing the door to those senior
citizens suffering from catastrophic illness who as a last resort have
to file for bankruptcy; not that single mother or single parent who is
trying to make ends meet.
Mr. Chairman, I would have hoped that this bill could have been one
that we all could have supported. Even the First Lady has looked at it
and said she believes in personal responsibility, but not closing the
door on parents and those who are trying to support their children.
I would simply suggest that we could do better here. I urge my
colleagues to send this bill back and put out a good bill that will
help working Americans.
Ms. JACKSON-LEE of Texas. Mr. Chairman. I rise today in support of
the Democratic substitute to H.R. 3150, the Bankruptcy Reform Act of
1998. I seriously question whether this bill, as it is now written,
will accomplish its goal of reforming our present bankruptcy system
without causing significant harm to many innocent parties; so
essentially, I find H.R. 3150 to be a bad bill. Particularly after the
issuance of an extremely harsh recommended rule by the Rules Committee
last night, and the exclusion of several key Democratic amendments from
the list of those that were made in order, this Democratic substitute
is our last hope.
From the beginning, this process has been more than merely a ``rush
to judgment'', actually, it has been a prime example of ``drive-by''
legislation. And even as we entered into a bi-partisan agreement to end
the Full Committee mark-up of this bill last Thursday, there were still
40 Democratic amendments to the bill waiting at the Clerk's desk. So
far, this process has just been moving too fast. Furthermore, our
objections about the rapidity of this process have been echoed by the
National Bankruptcy Conference, the American College of Bankruptcy, the
National Conference of Bankruptcy Judges, the National Association of
Chapter 13 trustees, and 57 of the Nation's leading professors of
bankruptcy law, amongst others. But despite it all, the speeding train
called H.R. 3150, continues to rush along. For decades, our bankruptcy
laws have been shaped in the spirit of bi-partisan accord, at least,
until now. So how can we have the opportunity to try to correct all of
these points of difference about H.R. 3150, at this very late time in
the process? To me, the answer is simple, support the Democratic
Substitute.
The needs based bankruptcy approach utilized in this bill, which
essentially comprises the use of an arbitrary financial standard to
determine the filing status of bankruptcy participants, was not
recommended to the Congress by the National Bankruptcy Review
Commission. But for some unknown reason, the sponsors of this
legislation thought better of the Commission's impeccable credentials,
years of combined experience in the field, thousands of man-hours
invested to compile and present their 1300 page report to this
Congress, and decided to ignore their recommendation. As the Executive
Office of the President said in a May 21st letter to Chairman Gekas,
``However, the administration strongly opposes H.R. 3150 in its present
form. One provision of the bill would establish a rigid and arbitrary
means test to determine whether a debtor could file for bankruptcy
under Chapter 7 or would be required to file under Chapter 13 rules--
Bankruptcy courts should have greater discretion to consider the
specific circumstances of a debtor in bankruptcy.''
Even the minority of Commissioners who thought the concept of needs-
based bankruptcy should be further explored, also thought that the
correction of certain parts of the Code, like 707(b), could also negate
the apparent rise in bankruptcy fraud. To this regard, our Democratic
Substitute gives discretion to our Bankruptcy Judges, by amending
707(b) of the Federal Bankruptcy Code, which contains the standards for
reviewing any potential filing abuse by a bankrupt debtor. We all
believe that by strengthening this section of the Code, alone, any so-
called bankruptcy fraud could be effectively neutralized.
But the real source of the 400% rise in bankruptcy filings since
1980, with a grand total of nearly 1.4 million filings last year, is
debt. The Republican argument, from the beginning, has been that with a
record 1.4 million bankruptcy filings last year, and with over 2/3 of
those filers entering into Chapter 7 rather than Chapter 13, that the
interests of the credit industry are being unnecessarily harmed by the
flexibility of our current bankruptcy laws. Furthermore, the credit
industry has consistently argued throughout this process that each
American household has had to endure a silent $400 tax, equal to their
$10 billion dollars in losses to debt discharge every year, as a result
of these laws. Thus, H.R. 3150 is a so-called return to personal
responsibility in our bankruptcy laws, because the ``overwhelming''
number of filings must represent an unprecedented debtor abuse.

However, this argument is ultimately a farce. The facts clearly
indicate that the cause of the recent surge of bankruptcy filings is
not because these filings are fraudulent, but instead because Americans
simply have too much debt. Commercial and Administrative Law
Subcommittee Ranking Member Nadler has

[[Page H4432]]

been extremely eloquent in his presentation of the debt to income ratio
among American consumers over the last 25 years, and how the only
indisputable evidence in this debate is that Americans have
significantly more debt today, than they have ever had before.
The average bankruptcy filer last year had a debt to income ratio of
1.64 to 1 (164 percent of their income) as opposed to just .87 to 1 (87
percent of their income) a few short years ago (that is nearly
double!). The fact of the matter is that Americans have more debt than
ever, and are waiting later than ever to enter bankruptcy, rather than
rushing into it to reorganize their personal finances as the authors
and supporters of H.R. 3150 have claimed. To reaffirm this contention,
a recent GAO study shows that the number of bankruptcy filings per
100,000 people as compared to the average amount of consumer debt per
household since 1964 has remained relatively unchanged. This means that
the number of bankruptcy filings over the last three decades has
consistently corresponded with the amount of public consumer debt.
Further, according to Bankruptcy Law Professor Elizabeth Warren of
the Harvard Law School, the debtors that enter bankruptcy are usually
experiencing very turbulent times. 60 percent of bankruptcy filers have
been unemployed within a two year span prior to their filing. 20
percent of filers have had to cope within an uninsurable medical
expense. Over 1 out of 3 filers, both male and female are recently
divorced. All of these factors usually working in concert to affect the
financial circumstances of a particular debtor, make bankruptcy an
inevitably, because it becomes their last remaining opportunity for a
fresh start. These are hard working Americans who have fallen upon
difficult times that H.R. 3150 presumes to be pretextually fraudulent,
generally disingenuous about their incomes and assets and capable of
making a significantly greater financial contribution to their
creditors. Ultimately, it seems that the true purpose of this bill is
not to improve the federal bankruptcy code, but instead, to transfer
more money from bankrupt debtors to banks and other credit lending
institutions.
But the reality is that no statistic can tell the story of a
lost job, a serious or terminal illness, a death in the family, a
divorce or any of the other common reasons for filing for bankruptcy;
there simply is much more to any bankrupt's story than a debtor's
anticipated income and projections about their ability to repay a
portion of their debt. Ultimately, this bill may end up causing a
chilling effect on all bankruptcy filings: justified, fraudulent or
otherwise (i.e., people may resolve that it is impossible for them to
receive any satisfactory remedy in the post-H.R. 3150 system).

The final reason to support the Substitute is that this bill is
completely inept in its regard for the care, safety and welfare of our
children. As the First Lady wrote in a May 7th article in the
Washington Times, ``I have no quarrel with responsible bankruptcy
reform, but I do quarrel with the aspects of the bill (H.R. 3150) that
would force single parents to compete for their child support payments
with big banks trying to collect credit card debt.'' She continued,
``As members of Congress grapple with bankruptcy reform, they must deal
with the problems that face both creditors and debtors. But one issue
is clear. Any effort to reform the bankruptcy system must protect the
obligations of parents to support their children.''
But H.R. 3150, does not ensure these protections, not at all. Even if
the Boucher/Gekas ``superpriority'' amendment is passed by this House,
the ``child and spousal support'' problems with this bill will still
not be corrected. First of all, I am appalled that the sponsors of this
legislation who have continually made the claim in the press, in public
statements and in pro-H.R. 3150 propaganda, that the ``child and
spousal support'' issue had been solved in Committee, would dare to
offer another amendment on this issue themselves rather than seek to
work with those parties who have concerned about this issue from the
very beginning. Whatever the motives of these parties may have been, it
at the very least, is disquieting to see conduct which borders upon the
deceptive.
The bottom line is as simple as this, our children and families still
have to compete with banks, credit lending institutions and retailers
in order to receive their needed support payments. No amendment made in
order under the current rule addresses the mandatory payment to
unsecured creditors for Chapter 13 participants in Section 102 of the
bill, no amendment made in order eliminates the many instances of
nondischargeability status for (credit card or) unsecured debt mandated
by the bill (Sections 141, 142, 145): the problem still remains.
Furthermore, since the Jackson Lee/Slaughter Child and Spousal Support
amendment was not made in order, the Democratic Substitute is the only
last chance to solve this problem before the final consideration of
this bill.
This substitute is friendly to women, children, religious and
charitable organizations, family farmers, homeowner and condominium
associations, victims of drunk driving related accidents, and many,
many others, at this late date, this Substitute is the closest that we
will ever get to bi-partisan bankruptcy reform. I urge all of my
colleagues to support it.
Mr. GEKAS. Mr. Chairman, I yield 1 minute to the gentlewoman from
California (Mrs. Tauscher).
Mrs. TAUSCHER. Mr. Chairman, I rise in opposition to the Nadler
substitute. The skyrocketing number of bankruptcies filed in this
country make it necessary for us to make real and substantial reform
and improvements to our bankruptcy law. This substitute would strip
from H.R. 3150 those provisions that promote responsibility and ensure
for bankruptcy filers repay some of what they owe.
The means test in this bill is a fair and reasonable process that
separates those who truly need to have their debts wiped away from
those who can afford to repay some of their obligations. It places no
undue burdens on sincere bankruptcy filers and requires repayment of
debts only if filers can adequately meet their household needs.
Mr. Chairman, we cannot be apologists for irresponsible behavior any
longer. The stigma that once was attached to bankruptcy must be
replaced by laws that hold people accountable for their action. I urge
my colleagues to oppose the Nadler substitute and support H.R. 3150.
Mr. GEKAS. Mr. Chairman, I yield 3\1/2\ minutes to the gentleman from
California (Mr. Royce).
Mr. ROYCE. Mr. Chairman, I rise today in opposition to the Nadler
substitute and in strong support of the Bankruptcy Reform Act, of which
I am a cosponsor.
Over the past decade, despite economic growth, despite low
unemployment, despite increasing personal income, our Nation has seen
an alarming increase in the numbers of bankruptcy filings. And I would
just share with my colleagues that filings jumped 20 percent this year.
That is 1.3 million, one in every 70 households.
The numbers are even greater in my home State of California, where we
have the greatest number of bankruptcy petitions filed last year, three
times as many as the next highest State, which is New York.
I wonder if perhaps the Yellow Pages which reflect these bankruptcy
mills, which I am holding in my hand, a stack of yellow pages that
basically say, ``Do not pay your debts, just call this number,'' if
perhaps this influences these growing numbers of bankruptcies.
Mr. Chairman, how is it that bankruptcies are increasing dramatically
while the economy is improving? For sure, some people have genuinely
bad breaks, and they need and should have protection from creditors.

{time} 1730

No one here today is questioning that, but we need to realize that
there are other people who are taking advantage of the current law to
walk away from their responsibility, the personal responsibility that
is so important to our Nation.
The costs to us from all this are great. Bankruptcy cost our Nation
$40 billion last year, and that cost is not solely borne by the
creditors and the merchants and the property owners. No, it is borne by
the individual families in this country, Mr. Chairman. And that is a
cost of $400 per household, higher costs for goods, higher costs for
services and for credit. That is a $400 bill that you and I pay when
irresponsible spenders who can afford to pay all or some of their debt
declare bankruptcy. This is what the bill addresses.
I would also like to add, Mr. Chairman, that this bill helps ex-
spouses. It helps women and children who rely on child support and
alimony payments. Indeed, this legislation makes major improvements in
the treatment of ex-spouses and children over present law.
First, it makes all domestic and child support and property
settlement obligations nondischargeable debts.
Second, under this legislation, for the first time child support
obligations must be paid before any other nondischargeable debt that
survives bankruptcy. I will add that my colleague the gentleman from
Virginia (Mr. Boucher) added an amendment, which I supported, which was
adopted, that will provide additional assurance that child support and
alimony payments are paid by giving them top priority. That is in the
bill.

[[Page H4433]]

Our bankruptcy laws play an important and necessary role in
protecting those who really need them. And that is the key, Mr.
Chairman, need. This bill makes the existing bankruptcy system a needs-
based one, addressing the flaw in the current system that encourages
people to file for bankruptcy and walk away from debts, regardless of
whether they are able to repay any portion of what they owe, while
protecting those who truly need protection.
Mr. MEEHAN. Mr. Chairman, I yield 3 minutes and 30 seconds to my
friend and colleague, the gentleman from Massachusetts (Mr. Kennedy).
Mr. KENNEDY of Massachusetts. Mr. Chairman, first of all, I want to
thank my good friend the gentleman from Massachusetts (Mr. Meehan) for
the hard work that he and the gentleman from Massachusetts (Mr.
Delahunt), and the gentleman from New York (Mr. Nadler) and others have
done on this bill.
This is the kind of legislation where I had hoped to be able to come
to the floor and support the overall bill that was being generated in
order to deal with a real problem in this country, where all too often
very, very wealthy and powerful individuals and corporations use the
bankruptcy laws to essentially hide from their responsibilities of
paying their debts.
I see it time and time again in my work on the Subcommittee on
Housing and Community Development and seeing landlords that are
completely unscrupulous declare bankruptcy, suck out section 8
subsidies time and time again, year in and year out, abuse the system
and do so with a bunch of sophisticated lawyers and beat the taxpayer
and beat their obligations to society.
I want to support a bankruptcy bill, but this bankruptcy bill is
flawed. This bankruptcy bill is flawed because it does not look out
after not the rich and powerful, but it does not look out after the
working families and the poor.
I rise in support of the Democratic substitute. As we debate this
bill, I am reminded of the casino scene in Casablanca with Inspector
Renault. After a decade of credit card companies literally throwing
trillions of unsolicited credit cards at consumers, luring them in with
teaser rates and easy credit and then slamming consumers with 20
percent and higher interest rates and creative new fees, the credit
card industry pretends to be shocked, shocked to find a rise in
personal bankruptcies.
Before Congress enacts the credit card industry's wish list to go
after the bankrupt poor and middle-income debtors, it is critical that
we hold the credit card industry accountable for practices that they
have spawned: a doubling of credit card debt over the course of the
last 6 years, and a 50 percent increase in credit card delinquency
rates.
The Democratic substitute addresses some of these concerns about
credit card practices in dealing with dischargeable credit card debts.
Before we enact bankruptcy reform, I also believe that we should reform
the reckless credit card practices of easy credit, high interest rates
and creative new fees, new fees such as teaser rates. We should require
better disclosure of the permanent rate of teaser rate come-ons.
Checks, we should mandate stricter control over unsolicited mailing of
high interest rate credit card accounts masquerading as checking
accounts. And rate increases, we should codify the right, existing in
20 States, to cancel a credit card and pay it off under existing terms
and conditions when rates are arbitrarily raised.
But the most egregious credit card practices, which should be
outlawed, are those which actually provide a financial incentive for
credit card holders not to pay off their debt. The first is the so-
called GE fee, a fee charged on card holders simply because they pay
their charges on time in full each month.
The other is the action, first seen only last year, of canceling
credit cards of only those card holders that paid their debt in full on
time.
I offered an amendment to outlaw these two practices, but the
Republicans refused to even allow it to be debated.
It is outrageous that an industry that wants relief from bankruptcy
should discriminate against people who pay off their debt simply
because credit card companies cannot make obscene profits off of them.
The credit card and banking industries are currently making record
profits. Do not bail out the credit card companies until they clean up
their act.
Mr. GEKAS. Mr. Chairman, I yield 3 minutes to the gentleman from
Virginia (Mr. Boucher).
Mr. BOUCHER. Mr. Chairman, I thank the gentleman from Pennsylvania
for yielding me the time.
I rise in opposition to the Nadler substitute and would offer some
remarks in further elaboration of the priority that we have now
accorded to the child support and alimony recipient.
These remarks are offered in response to the suggestion, made by some
who are arguing in support of this substitute, that child support and
alimony does not receive proper priority and that what priority it has
perhaps could be defeated in a practical way by nonsecured creditors
who have claims that survive in the post-discharge environment. I
disagree with those suggestions and would explain this disagreement in
these terms.
As a legal matter, I think, as a consequence of amendments adopted in
the committee and the Boucher-Gekas amendment adopted earlier on the
floor today, we have now done everything that possibly can be done to
make sure that the child support recipient, the alimony recipient does
in fact have complete priority over nonsecured debt and in fact has
first priority in the range of priorities in bankruptcy and in the
post-bankruptcy environment.
The only argument that I am now hearing is that as a practical
matter, the recipient of alimony, the recipient of child support may
not have the practical ability to enforce that priority that is
possessed perhaps by the credit card company or some other lender who
has a claim that survives in bankruptcy.
I would respond to that by saying that Congress has created and
required agencies that enabled the recipient of child support, the
recipient of alimony to enforce their claims very effectively. All that
has to be done is for a letter to be sent from one of these agencies at
the State level to the employer of a person who owes child support or
alimony and then that child support or alimony is automatically
withheld from the salary of the person who has that obligation.
That money is then automatically turned over to the recipient of the
child support or alimony. That is a very effective way for the person
who has a claim for child support or alimony to have that claim pursued
successfully. The State operates in support of that claimant.
The question then arises with regard to what about the person who
owes child support or alimony and is self-employed. Obviously there is
no instrumentality to withhold salary in that case, and the answer is
that by encouraging the greater use of Chapter 13, which is the
foundation of the bill and the core principle of the bill itself, we
will encourage a greater respect for the priority of the child support
or alimony recipient. Because in Chapter 13 proceedings, it is very
easy, indeed, to enforce that first priority that the child support or
alimony recipient will have.
So in every instance, we have done everything that can be done to
protect that priority, and I would respectfully urge that this
amendment not be agreed to.
Mr. GEKAS. Mr. Chairman, I yield myself such time as I may consume.
Two interesting contentions that have been made throughout this
debate from the very first moment we began the process in late 1997.
One is the continuous lament from the other side of the aisle that it
is not bipartisan in its offering, in its substance or in its support.
Yet we took great pains to entertain as many Democrats as possible in a
Republican atmosphere to provide a bipartisan vehicle for our
consideration and that has reached us here today: bipartisan in
sponsorship, bipartisan in sponsorship of underlying bills which were
incorporated into our bill, and bipartisan in those who came forward to
say to us, let me speak in favor of 3150 and let me speak in opposition
to the Nadler substitute. So there is a bipartisanship that has played
its role throughout this process.

[[Page H4434]]

When, during subcommittee, I remember very well, turning to the
gentleman from New York (Mr. Nadler), he will recall this, and asking
him if any Republicans joined him and the gentleman from Michigan (Mr.
Conyers) in their plan for bankruptcy reform, thus an attempt to make
it a bipartisan vehicle, the gentleman from New York (Mr. Nadler),
quite honestly, admitted there were no Republicans, nor did I discern
any attempt on their part to draw Republican support for their vehicle.
Now, this is not a great big argument on my part, the fact that I
believe it is bipartisan, while others on that side do not believe it
is bipartisan. But when we opened the amendment process in the
subcommittee and full committee and on the floor and we joined hands as
cosponsors, both Democrats and Republicans, I venture to say that our
efforts were more bipartisan than those which attack 3150. And that, I
would ask each Member to take into consideration, if that is a
criterion upon which they will base their final vote, bipartisanship.
I have always believed in bipartisanship, and I have strenuously
accorded every conceivable courtesy I could to Members of the minority,
both in subcommittee and full committee and on the floor, and my final
proof of bipartisanship is the roll call of the vote that will occur
very shortly.
In addition to that, the other thing that is spectacular in its
repetition on the part of the minority is that the gateway approach
that we provide as the core element of 3150, whereby the debtor who
comes to bankruptcy will be tested and screened at the outset to
determine whether or not a fresh start should be accorded them, we give
full play to that, or whether or not that individual should be
compelled to repay some of the debt, if we determine, by the screening
process, that there will be an ability to repay some of the debt. That
is a screening process, we say, which will shorten the process in
bankruptcy in the future, once this is adopted, and be less costly.
What does the gentleman from New York, with the collusion of the
gentleman from Massachusetts (Mr. Meehan), say, that they ought to
adopt this substitute which calls for every single case to go before a
judge. We are telling Members that there were 1,400,000 new filings in
1997. If we were to have this substitute in effect in 1997, each one of
those cases would have to go before a bankruptcy judge so that that
judge can exercise the discretion, the human quality that the gentleman
from New York, substantiated by the gentleman from Massachusetts, would
find necessary to adjudicate each case one by one on whether or not the
means test should be applied fairly.

{time} 1745

We say to you, that is a costly process, that is a never-ending
process.
Our screening process at the outset would relegate dozens of people
into title 7 and give them their fresh start with a cursory examination
of their income tax return, their wage statements, to determine their
inability to repay any of the debt, thus earning the right of a fresh
start. Our gateway approach is one that expedites the process, becomes
more efficient, less costly.
How can you continue to say that to take the 1,400,000, rip away our
gateway approach and allow each one of those to be adjudicated
separately by a judge? It is overwhelming. We would need to add 40 new
bankruptcy judges a month for 10 years to handle the increase that we
would see in filings. But if we adopt, as I hope we will, H.R. 3150,
the screening process, which is only a starting point, will at the
outset say, ``Fresh start, you got it.'' On the other hand, if there is
any ability to repay, you go through a process that is determined by
Chapter 13, and we will help you with a plan to be able to repay some
of the debt that you have incurred over the years. I think it is a
reasonable way, it is an efficient way and a less costly way.
That is why I am astounded by all these figures about how much more
costly our bill would be than the substitute. The substitute takes each
case and makes a Supreme Court case out of it, to use the vernacular,
by saying that each one has to be adjudicated on its own merits. We
begin by screening, in a proper, reasonable, human way, whether a
person should be discharged immediately or should go through the
process of repayment.
Ms. JACKSON-LEE of Texas. Mr. Chairman, will the gentleman yield?
Mr. GEKAS. I yield to the gentlewoman from Texas.
Ms. JACKSON-LEE of Texas. Mr. Chairman, there is no doubt that the
gentleman is sincere in his remarks. Might I just note for the record
that the gentleman from New York (Mr. Nadler), whom he was addressing,
is not on the floor at this time. The substitute is the Nadler, Meehan,
Berman, Jackson-Lee substitute.
Let me just say, with respect to his proposition, that the National
Bankruptcy Review Commission did not accept the means test, and in fact
one of the problems with it is that the experts, the bankruptcy judges
themselves, have said not only is it too costly, but it is too
complicated. CBO has assessed the means-testing procedure at costing
$214 million when in fact the Democratic substitute wants to stop
fraudulent activity and will ask the experts to use the test of
substantial abuse so that we can avoid that.
Mr. GEKAS. Mr. Chairman, reclaiming my time, I do not see how the
gentlewoman can argue that to have 1,400,000 separate cases cannot
increase or would not increase the cost of processing bankruptcy. That
is a rhetorical question.
Mr. MEEHAN. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I would just respond that the screening method that he
described, according to CBO, would cost taxpayers $200 million.
Mr. Chairman, I yield 2 minutes to the gentleman from Texas (Mr.
Lampson).
Mr. LAMPSON. Mr. Chairman, I rise today in strong support of the
Nadler, Meehan, Berman, Jackson-Lee amendment to this bill.
I think this substitute strikes a fair balance and alleviates many of
the concerns that I have with H.R. 3150. I applaud all the hard work of
those Members who took part in striking this fair compromise.
Everyone is troubled with the record number of personal bankruptcy
filings that we are seeing in the United States. Last year, 1.4 million
Americans filed bankruptcy. Certainly I am committed to the principle
of bankruptcy reform. Certainly I believe that we should rid the system
of those who deliberately abuse the system. But I do not believe we
should do this at the expense of hard-working families, women and
children.
The substitute gives child support and alimony payments the highest
priority under Federal bankruptcy law. We should not force women and
children to compete with creditors' attorneys over limited funds in
court.
I support this amendment because it offers a more flexible approach
when evaluating a debtor's ability to repay. It will make it easier for
a debtor's actual expenses that are reasonably necessary to be
considered, such as child care payments, health care costs, and the
costs of taking care of ill parents.
This amendment also alleviates the harsh small business provisions
found in H.R. 3150 by providing a safety valve for small businesses hit
with financial difficulty. Voting for this amendment will protect hard-
working Americans from premature small business liquidations.
Mr. Chairman, I urge my colleagues to vote in favor of the Nadler,
Meehan, Berman, Jackson-Lee amendment. It strikes a fair balance in
attempting to rid the system of those who choose to abuse the
bankruptcy system. At the same time, the amendment protects honest,
hard-working Americans who are experiencing real financial difficulty.
Mr. MEEHAN. Mr. Chairman, I yield 2 minutes to the gentleman from
North Carolina (Mr. Watt), a leader in the Committee on the Judiciary,
a person who is always first to speak up for those who cannot speak for
themselves.
Mr. WATT of North Carolina. Mr. Chairman, this is actually a very sad
day for this House. There should not have to be a Democratic substitute
on a bankruptcy bill, because bankruptcy is not a partisan issue.
Let us look at how we got here. There are some people abusing the
bankruptcy system that exist now. We sat down and we started working
together to try to come up with a bill that would address that issue.
Instead, the Republicans came up with a bill

[[Page H4435]]

that means-tests bankruptcies so that one size is designed to fit all.
It astonishes me that the gentleman from Pennsylvania, the chairman
of the subcommittee, comes to the floor and acknowledges that he does
not want each one of these bankruptcy matters to be adjudicated on its
own merits. That is exactly what he said. I thought that is what we
were trying to do, have each one of these bankruptcy matters
adjudicated on its own merits, because whether somebody is bankrupt and
deserves the protection of bankruptcy court is an individual
proposition. It is not a matter of means-testing.
Can you imagine that somebody who makes above the median income in
this country and cannot be extended beyond their means, they should not
be entitled to the benefits of the bankruptcy courts? If you look at
every single individual and every single case on its own merits, that
is what our system is designed to do, and that is the way it should be
done, and that is why the Democratic substitute is a better substitute
than the original bill. It is not perfect, either, but it is better
than the original bill.
Mr. MEEHAN. Mr. Chairman, I yield 2 minutes to the gentlewoman from
New York (Mrs. Maloney).
Mrs. MALONEY of New York. Mr. Chairman, I thank the gentleman for
yielding me this time and for his leadership on this issue along with
the gentleman from New York (Mr. Nadler).
Mr. Chairman, I rise to express my opposition to the rigid approach
of means-testing and my strong support for the substitute amendment. If
means-testing is made into law, a debtor's actual living expenses will
be disregarded, while an inflexible IRS formula is imposed. Even if
those predetermined numbers cause true hardship through a strict
repayment plan, it is the consumer that would have to initiate
litigation to appeal, an expensive and intimidating process.
If the main target of bankruptcy reform are wealthier abusers, let us
give creditors the tools they need to get the job done. The Democratic
substitute amendment does just that. It empowers credit companies to
contest the Chapter 7 filing of debtors who are deliberately shielding
their wealth. But it also ensures that the fate of debtors will be
decided by a thinking person, a trained judge, who can evaluate what
are often subjective factors on a case-by-case basis, not an unbending
formula. Equally important, the substitute puts the burden of
litigation where it belongs, on the creditor, which, after all, made
the decision to take the risk of lending.
We need to help creditors get back more of what is owed to them, but
we need to do it in a balanced way. The Democratic substitute does
that.
Mr. Chairman, there has been much discussion back and forth on the
child support enforcement provision. I would like to put into the
Record practically every women's group that I have ever heard of who is
opposed to this bill because of the impact it will have on child
support.
Mr. Chairman, I include for the Record the names of at least 20
women's organizations opposed to this bill.
The material referred to is as follows:

The Justice Department
Small Business Administration (SBA)
Alliance for Justice
National Organization for Women (NOW)
Mothers Against Drunk Driving (MADD)
National Organization for Victim Assistance (NOVA)
National Victim Center
Association for Children of Enforcement Support (ACES)
Governing Counsel, Family Law Section, American Bar
Association
AFL-CIO
UAW
UNITE
AFSCME
Consumer Federation of America
Consumers' Union
Public Citizen
California Women's Law Center (CWLC)
Group of 110 United States Bankruptcy Judges
Leadership Conference on Civil Rights
National Conference of Bankruptcy Judges
American College of Bankruptcy
National Bankruptcy Conference
National Association of Consumer Bankruptcy Attorneys
National Association of Bankruptcy Trustees
National Association of Chapter 13 Trustees
National Association of Consumer Bankruptcy Attorneys
National Association of Debtor Attorneys
Houston Association of Debtor Attorneys
American Association of University Women
Association for Children for Enforcement of Support, Inc.
Black Women's Agenda, Inc.
Business and Professional Women/USA
Center for Advancement of Public Policy
Children's Defense Fund
Church Women United
Coalition of Labor Union Women
Federally Employed Women, Inc.
Feminist Majority
MANA, A National Latina Organization
National Association of Commissions For Women
National Association for Female Executives
National Organization for Women
National Women's Conference
NAWE Advancing Women in Higher Education
NOW Legal Defense and Education Fund
Older Women's League
The Woman Activist Fund, Inc.
Women Work!
YWCA of the U.S.A.
National Council of Senior Citizens
____

National Council of

Senior Citizens,

Silver Spring, MD, June 9, 1998.
Representative Jerrold Nadler,
United States Congress,
Washington, DC.
Dear Representative Nadler: I am writing to express NCSC's
deep concern about pending floor action on H.R. 3150, the
Bankruptcy Reform Act of 1998. We join with many bankruptcy
judges, legal scholars, women's groups, unions, consumer
groups and others in urging that this bill not be passed
without further study and substantial changes.
I am especially concerned about the effect this bill might
have on seniors. I might note that a series of amendments
were offered in the Judiciary Committee that would have
offered some protections to older people but all were
defeated. As it stands, then, this bill would have a harsh
impact on a group of people who are often subject to job loss
or catastrophic health costs; instead of ameliorating these
problems, this bill would only exacerbate them.
Since 1993, more than a million people over the age of 50
have filed for bankruptcy; in 1997, an estimated 280,000
older Americans filed. For them it is particularly hard. If
they are forced into prolonged repayment schedules, they may
not be able to maintain or accumulate savings for retirement.
As you know, approximately two thirds of voluntary, Chapter
13 workout plans fail, and we believe that retirement savings
must be protected for that purpose.
Instead of addressing the root causes of personal
bankruptcy and addressing behavior of both abusive debtors
and creditors, this bill will add unnecessary administrative
and financial burdens to hardworking families who seek relief
in bankruptcy court.
H.R. 3150 is simply moving too fast, and there has been too
little scrutiny given to credit industry practices. The
consequences for older people must be examined more closely
and addressed in a fair way before any changes in bankruptcy
law are made. We urge you to delay action on this bill and to
work with bankruptcy experts and others toward targeted and
effective changes in the Bankruptcy Code.
Sincerely,
Dan Schulder,
Director, Public Affairs and Legislation.

Mr. GEKAS. Mr. Chairman, I yield 3 minutes to the gentleman from
Florida (Mr. Foley).
Mr. FOLEY. Mr. Chairman, I thank the gentleman from Pennsylvania for
his hard work. Obviously I stand in opposition to the Nadler
substitute. I hear a lot of discussion on the floor today. I just heard
women's groups are against this. I have heard an impression made on the
floor that somehow our bill does not allow for the enforcement of child
support or set a priority on child support. In fact, it does. The bill
prioritizes child support as one of the real priorities in the bill.
For anyone questioning the need for this bill we are discussing
today, the statistics spell it out. Personal bankruptcies have hit a
high record number for each of the past 3 years, and again in the first
quarter of this year. Many will offer a variety of reasons for that
alarming statistic, but the simple fact is that current law makes it
too easy for individuals to walk away from their financial obligations,
even if they have the means to meet those obligations. It happens too
often in Florida.
I have heard in the last several days around this Capitol that
somehow it is the credit card companies that are inducing commonsense,
average Americans to run up phenomenal bills and so we must blame the
credit card companies for their debt and discharge the debtor from
their responsibilities.
I just heard an analogy of the risk of lending, and somehow, someway
we are supposed to now stand in front of the borrower and protect them
with a

[[Page H4436]]

shield. I think that is wrong, I think it is irresponsible, and that it
should no longer be sanctioned by the Federal Government.
Some will argue that H.R. 3150 hurts low-income individuals facing
financial disaster through no fault of their own. This is simply not
true. H.R. 3150 merely codifies into law what is common sense to every
American. Those who can afford their bills should not stick others with
their tab.
This much needed reform bill imposes a means test to allow those who
are facing financial disaster to wipe away most of their debts.
However, those who have the ability to repay their debts will have to
abide by a repayment schedule. If this sounds like a sensible
proposition, it is because it is a sensible proposition.
Mr. Chairman, today we are debating something vitally important. We
do want to care for families, we do want to care for average Americans,
hard-working individuals. But there is a notion that when you incur
debt, you should make every attempt to repay that debt.
Society today is transferring debt to others. Those who pay their
bills, who keep an outstanding credit record, are in fact having to pay
higher interest rates because a lot of people are shirking their
responsibility. In Florida, we have had a number of cases that just are
outrageous in the way the courts have been used in order for creditors
to have no payment rendered to them.
Again, I urge my colleagues to reject the Nadler substitute. I urge
them to support the work of the gentleman from Pennsylvania (Mr. Gekas)
in passing H.R. 3150 today so the House will ensure that the
irresponsible and the well off in our society will no longer be able to
pass the buck to those who struggle daily to meet their financial
obligations.
Mr. MEEHAN. Mr. Chairman, I yield 2\1/2\ minutes to the gentleman
from Massachusetts (Mr. Delahunt), a leader in the committee and in the
subcommittee.
Mr. DELAHUNT. Mr. Chairman, what concerns me today about this debate
and where we are headed is that we are truly crafting public policy
without the benefit of any data. Very, very little hard information is
available to us. I believe the American people should understand that
while we may be well-intentioned, we really are legislating on hunches,
on guesswork and hope.

{time} 1800

As my colleagues know, I have heard the figure now from the previous
speaker about 1.4 million. That is unacceptable. The only information
that we were able to secure during the course of the hearing about what
H.R. 3150 would do in terms of reducing that number was from the
bankruptcy judges. They testified, those that I inquired of, that it
would reduce the amount of filings 13,000 possibly, 1 percent.
That is the only information that we have, 1 percent, 13,000. We are
passing a piece of legislation here today, if this underlying bill is
enacted, that is based on nothing but anecdote.
Stigma. There is no data to indicate that people are any different
today than they were 10, 20 or 30 years ago. People are not just
walking away, they are being crushed by debt. In addition to that,
their wages, for most Americans, have not gone up in any significant
degree for 20 years. Twenty percent of us are doing very well, but the
rest of America is not.
That is the only information that we have. It is unfair. We talk
about 44 billion. What will Mr. Gekas' bill do to reduce? How much
money is going to be saved if the Gekas-Boucher-McCollum bill passes? I
daresay not a single cent. It is not going to save a dime. It certainly
will not benefit the consumer. We all know that. The moneys, if there
are moneys that are saved, are going to go to the Wall Street investor,
in the banks and the credit card industry. That is where it is going to
go. It is going to introduce or enhance profitability.
Mr. Chairman, I know these gentleman are sincere, I know that we all
share the same goal, but this is not the right approach. We should have
slowed the process down and secured some information and answers to
questions that we do not know the answers to now.
Mr. MEEHAN. Mr. Chairman, I yield the balance of my time to myself.
The CHAIRMAN pro tempore (Mr. Calvert). The gentleman from
Massachusetts is recognized for 1\1/2\ minutes.
Mr. MEEHAN. Mr. Chairman, on a final note, let me just say in
response to the argument from the other side of the aisle, the child
support and alimony problem does not begin and end with sections 141
and 142 of H.R. 3150. The means test and other parts of the bill
contribute to the problem as well.
A letter from the National Partnership for Women and Families put it
best. Several provisions increase the credit card's ability to pressure
debtors into reaffirming credit card debt by threatening the debtor
with repossession or litigation. Through reaffirmation, even more
credit card debt becomes nondischargeable in bankruptcy.
In other words, aggressive creditors can use the leverage that they
receive under this bill's means test to force debtors to agree to let
their debts survive bankruptcy.
So we once again have debtors entering the post-bankruptcy world with
large amounts of credit card debt hanging over their heads in addition
to their support and alimony obligations.
There is simply no way to fix the child support and alimony problems
with this bill other than to delete the new exceptions to the discharge
of credit card debt and rewrite its means test along the lines of the
Nadler-Meehan-Berman substitute. We should support this substitute and
defeat this bill.
Mr. Chairman, I yield back the balance of my time.
Mr. GEKAS. Mr. Chairman, I yield myself the balance of my time.
The CHAIRMAN pro tempore. The gentleman from Pennsylvania is
recognized for 2 minutes.
Mr. GEKAS. Mr. Chairman, I repeat my request to Members to reject the
Nadler substitute and to later support the bill.
When the gentleman from Massachusetts (Mr. Delahunt) was speaking, he
was decrying the fact that there was no data available on which we
could base any concept now contained in 3150.
The question in reverse has to be asked: On what data is the Nadler
substitute based? It has to be in the same data that we used for 3150,
namely 1,400,000 bankruptcies. Nobody can fully explain that. And the
Nadler substitute, the gentleman from Massachusetts (Mr. Meehan) and
others acknowledge that there is abuse in the system. Well, where did
they get that idea? Where did they get the idea that there is abuse in
the system if it were not for the fact that 1,400,000 bankruptcies were
filed in 1997? Everybody in America knows that means that the system
was abused.
And if we want to continue to have a system which is so riddled with
loopholes, making it easier for people to escape obligations, vote for
the Nadler substitute. If we want to tighten up the system and make
people more responsible and allow people to repay when they can repay
the debts that they assumed, then reject the Nadler amendment and then
when the time comes, vote for true reform, the underlying bill, H.R.
3150.
Mr. Chairman, I yield back the balance of my time.
The CHAIRMAN pro tempore. All time has expired.
The question is on the amendment in the nature of a substitute
offered by the gentleman from New York (Mr. Nadler).
The amendment in the nature of a substitute was rejected.

Sequential Votes Postponed in Committee of the Whole

The CHAIRMAN pro tempore. Pursuant to House Resolution 462,
proceedings will now resume on those amendments on which further
proceedings were postponed, in the following order: amendment No. 2
offered by the gentleman from New York (Mr. Nadler), amendment No. 3
offered by the gentleman from Massachusetts (Mr. Delahunt), amendment
No. 8 offered by the gentleman from Pennsylvania (Mr. Gekas), and
amendment No. 9 offered by the gentleman from Virginia (Mr. Scott).
The Chair will reduce to 5 minutes the time for any electronic vote
after the first vote in this series.

Amendment No. 2 Offered by Mr. Nadler

The CHAIRMAN pro tempore. The pending business is the demand for a
recorded vote on amendment No. 2 offered by the gentleman from New York

[[Page H4437]]

(Mr. Nadler) on which further proceedings were postponed and on which
the noes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.

Recorded Vote

The CHAIRMAN pro tempore. A recorded vote has been demanded.
A recorded vote was ordered.
The vote was taken by electronic device, and there were--ayes 136,
noes 290, not voting 7, as follows:

[Roll No. 219]

AYES--136

Abercrombie
Ackerman
Allen
Baldacci
Barcia
Becerra
Bonior
Borski
Brady (PA)
Brown (CA)
Brown (FL)
Brown (OH)
Campbell
Capps
Cardin
Carson
Clay
Clyburn
Conyers
Coyne
Cummings
Davis (FL)
Davis (IL)
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dingell
Dixon
Doggett
Doyle
Edwards
Engel
Eshoo
Evans
Fattah
Fazio
Filner
Furse
Gejdenson
Gephardt
Green
Gutierrez
Hall (OH)
Hastings (FL)
Hefner
Hilliard
Hinchey
Hinojosa
Hooley
Jackson (IL)
Jackson-Lee (TX)
Johnson, E. B.
Kanjorski
Kaptur
Kennedy (MA)
Kennelly
Kildee
Kilpatrick
Klink
Kucinich
LaFalce
Lampson
Lantos
Lee
Levin
Lofgren
Lowey
Maloney (NY)
Manton
Martinez
Mascara
Matsui
McCarthy (NY)
McDermott
McGovern
McKinney
McNulty
Meehan
Meek (FL)
Meeks (NY)
Millender-McDonald
Miller (CA)
Mink
Moakley
Mollohan
Nadler
Neal
Oberstar
Olver
Ortiz
Owens
Pallone
Pascrell
Pastor
Payne
Pelosi
Poshard
Price (NC)
Rahall
Reyes
Rivers
Rodriguez
Roybal-Allard
Rush
Sanchez
Sanders
Sanford
Sawyer
Scott
Serrano
Shays
Skaggs
Slaughter
Souder
Stark
Stokes
Strickland
Stupak
Thompson
Thurman
Tierney
Torres
Towns
Velazquez
Vento
Visclosky
Waters
Watt (NC)
Waxman
Wexler
Wise
Woolsey
Wynn
Yates

NOES--290

Aderholt
Andrews
Archer
Armey
Bachus
Baesler
Baker
Ballenger
Barr
Barrett (NE)
Barrett (WI)
Bartlett
Barton
Bass
Bateman
Bentsen
Bereuter
Berry
Bilbray
Bilirakis
Bishop
Blagojevich
Bliley
Blumenauer
Blunt
Boehlert
Boehner
Bonilla
Bono
Boswell
Boucher
Boyd
Brady (TX)
Bryant
Bunning
Burr
Burton
Buyer
Callahan
Calvert
Camp
Canady
Cannon
Castle
Chabot
Chambliss
Chenoweth
Christensen
Clement
Coble
Coburn
Collins
Combest
Condit
Cook
Cooksey
Costello
Cox
Cramer
Crane
Crapo
Cubin
Cunningham
Danner
Davis (VA)
Deal
DeLay
Deutsch
Diaz-Balart
Dickey
Dooley
Doolittle
Dreier
Duncan
Dunn
Ehlers
Ehrlich
Emerson
English
Ensign
Etheridge
Everett
Ewing
Fawell
Foley
Forbes
Ford
Fossella
Fowler
Fox
Frank (MA)
Franks (NJ)
Frelinghuysen
Frost
Gallegly
Ganske
Gekas
Gibbons
Gilchrest
Gillmor
Gilman
Goode
Goodlatte
Goodling
Gordon
Goss
Graham
Granger
Greenwood
Gutknecht
Hall (TX)
Hamilton
Hansen
Hastert
Hastings (WA)
Hayworth
Hefley
Herger
Hill
Hilleary
Hobson
Hoekstra
Holden
Horn
Hostettler
Houghton
Hoyer
Hulshof
Hunter
Hutchinson
Hyde
Inglis
Istook
Jefferson
Jenkins
John
Johnson (CT)
Johnson (WI)
Johnson, Sam
Jones
Kasich
Kelly
Kennedy (RI)
Kim
Kind (WI)
King (NY)
Kingston
Kleczka
Klug
Knollenberg
Kolbe
LaHood
Largent
Latham
LaTourette
Lazio
Leach
Lewis (CA)
Lewis (KY)
Linder
Lipinski
Livingston
LoBiondo
Lucas
Luther
Maloney (CT)
Manzullo
Markey
McCarthy (MO)
McCollum
McCrery
McDade
McHale
McHugh
McInnis
McIntosh
McIntyre
McKeon
Menendez
Metcalf
Mica
Miller (FL)
Minge
Moran (KS)
Moran (VA)
Morella
Murtha
Myrick
Nethercutt
Neumann
Ney
Northup
Norwood
Nussle
Obey
Oxley
Packard
Pappas
Parker
Paul
Paxon
Pease
Peterson (MN)
Peterson (PA)
Petri
Pickering
Pickett
Pitts
Pombo
Pomeroy
Porter
Portman
Pryce (OH)
Quinn
Radanovich
Ramstad
Rangel
Redmond
Regula
Riggs
Riley
Roemer
Rogan
Rogers
Rohrabacher
Ros-Lehtinen
Rothman
Roukema
Royce
Ryun
Sabo
Salmon
Sandlin
Saxton
Scarborough
Schaefer, Dan
Schaffer, Bob
Sensenbrenner
Sessions
Shadegg
Shaw
Sherman
Shimkus
Shuster
Sisisky
Skeen
Skelton
Smith (MI)
Smith (NJ)
Smith (OR)
Smith (TX)
Smith, Adam
Smith, Linda
Snowbarger
Snyder
Solomon
Spence
Spratt
Stabenow
Stearns
Stenholm
Stump
Sununu
Talent
Tanner
Tauscher
Tauzin
Taylor (MS)
Taylor (NC)
Thomas
Thornberry
Thune
Tiahrt
Traficant
Turner
Upton
Walsh
Wamp
Watkins
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
Weygand
White
Whitfield
Wicker
Wolf
Young (AK)
Young (FL)

NOT VOTING--7

Berman
Clayton
Farr
Gonzalez
Harman
Lewis (GA)
Schumer

{time} 1828

Messrs. GRAHAM, MICA, WELLER and BURR of North Carolina changed their
vote from ``aye'' to ``no.''
Messrs. MATSUI, SHAYS, ACKERMAN and BECERRA and Ms. RIVERS changed
their vote from ``no'' to ``aye.''
So the amendment was rejected.
The result of the vote was announced as above recorded.

{time} 1830

Mr. NADLER. Mr. Chairman, I ask unanimous consent that the present
unfinished business be considered to include a request for a recorded
vote on the Nadler substitute.
The CHAIRMAN pro tempore (Mr. Calvert). Is there objection to the
request of the gentleman from New York?
There was no objection.

Announcement By The Chairman Pro Tempore

The CHAIRMAN pro tempore. Pursuant to House Resolution 462, the Chair
announces that he will reduce to a minimum of 5 minutes the period of
time within which a vote by electronic device will be taken on each
amendment on which the Chair has postponed further proceedings.

Amendment No. 3 Offered By Mr. Delahunt

The CHAIRMAN pro tempore. The pending business is the demand for a
recorded vote on amendment No. 3 offered by the gentleman from
Massachusetts (Mr. Delahunt) on which further proceedings were
postponed and on which the noes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.

Recorded Vote

The CHAIRMAN pro tempore. A recorded vote has been demanded.
A recorded vote was ordered.
The CHAIRMAN pro tempore. This is a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 149,
noes 278, not voting 6, as follows:

[Roll No. 220]

AYES--149

Abercrombie
Ackerman
Barcia
Barrett (WI)
Becerra
Blumenauer
Bonior
Borski
Brady (PA)
Brown (CA)
Brown (FL)
Brown (OH)
Campbell
Capps
Carson
Clay
Clayton
Clyburn
Coburn
Conyers
Costello
Coyne
Cummings
Danner
Davis (IL)
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dixon
Doyle
Edwards
Engel
Eshoo
Etheridge
Evans
Fattah
Fazio
Filner
Ford
Furse
Gejdenson
Gephardt
Green
Gutierrez
Harman
Hastings (FL)
Hefner
Hilliard
Hinchey
Hinojosa
Hoyer
Jackson (IL)
Jackson-Lee (TX)
Jefferson
John
Johnson (WI)
Johnson, E. B.
Kanjorski
Kaptur
Kennedy (MA)
Kennedy (RI)
Kennelly
Kildee
Kilpatrick
Klink
Kucinich
LaFalce
Lampson
Lantos
Lee
Levin
Lipinski
Lofgren
Lowey
Luther
Maloney (NY)
Manton
Markey
Martinez
Mascara
Matsui
McCarthy (MO)
McCarthy (NY)
McDermott
McGovern
McKinney
McNulty
Meehan
Meek (FL)
Meeks (NY)
Millender-McDonald
Miller (CA)
Minge
Mink
Moakley
Mollohan
Murtha
Nadler
Neal
Oberstar
Obey
Olver
Ortiz
Owens
Pallone
Pascrell
Pastor
Payne
Pelosi
Poshard
Price (NC)
Rahall
Rangel
Reyes
Rodriguez
Roybal-Allard
Rush
Sabo
Sanders
Sawyer
Scott
Serrano
Skaggs
Skelton
Slaughter
Stark
Stokes
Strickland
Stupak
Taylor (MS)
Thompson
Thurman
Tierney
Torres
Towns
Velazquez
Vento
Visclosky
Waters
Watt (NC)
Waxman
Wexler
Weygand
Wise
Woolsey
Wynn
Yates

[[Page H4438]]

NOES--278

Aderholt
Allen
Andrews
Archer
Armey
Bachus
Baesler
Baker
Baldacci
Ballenger
Barr
Barrett (NE)
Bartlett
Barton
Bass
Bateman
Bentsen
Bereuter
Berry
Bilbray
Bilirakis
Bishop
Blagojevich
Bliley
Blunt
Boehlert
Boehner
Bonilla
Bono
Boswell
Boucher
Boyd
Brady (TX)
Bryant
Bunning
Burr
Burton
Buyer
Callahan
Calvert
Camp
Canady
Cannon
Cardin
Castle
Chabot
Chambliss
Chenoweth
Christensen
Clement
Coble
Collins
Combest
Condit
Cook
Cooksey
Cox
Cramer
Crane
Crapo
Cubin
Cunningham
Davis (FL)
Davis (VA)
Deal
DeLay
Deutsch
Diaz-Balart
Dickey
Dingell
Doggett
Dooley
Doolittle
Dreier
Duncan
Dunn
Ehlers
Ehrlich
Emerson
English
Ensign
Everett
Ewing
Fawell
Foley
Forbes
Fossella
Fowler
Fox
Franks (NJ)
Frelinghuysen
Frost
Gallegly
Ganske
Gekas
Gibbons
Gilchrest
Gillmor
Gilman
Goode
Goodlatte
Goodling
Gordon
Goss
Graham
Granger
Greenwood
Gutknecht
Hall (OH)
Hall (TX)
Hamilton
Hansen
Hastert
Hastings (WA)
Hayworth
Hefley
Herger
Hill
Hilleary
Hobson
Hoekstra
Holden
Hooley
Horn
Hostettler
Houghton
Hulshof
Hunter
Hutchinson
Hyde
Inglis
Istook
Jenkins
Johnson (CT)
Johnson, Sam
Jones
Kasich
Kelly
Kim
Kind (WI)
King (NY)
Kingston
Kleczka
Klug
Knollenberg
Kolbe
LaHood
Largent
Latham
LaTourette
Lazio
Leach
Lewis (CA)
Lewis (KY)
Linder
Livingston
LoBiondo
Lucas
Maloney (CT)
Manzullo
McCollum
McCrery
McDade
McHale
McHugh
McInnis
McIntosh
McIntyre
McKeon
Menendez
Metcalf
Mica
Miller (FL)
Moran (KS)
Moran (VA)
Morella
Myrick
Nethercutt
Neumann
Ney
Northup
Norwood
Nussle
Oxley
Packard
Pappas
Parker
Paul
Paxon
Pease
Peterson (MN)
Peterson (PA)
Petri
Pickering
Pickett
Pitts
Pombo
Pomeroy
Porter
Portman
Pryce (OH)
Quinn
Radanovich
Ramstad
Redmond
Regula
Riggs
Riley
Rivers
Roemer
Rogan
Rogers
Rohrabacher
Ros-Lehtinen
Rothman
Roukema
Royce
Ryun
Salmon
Sanchez
Sandlin
Sanford
Saxton
Scarborough
Schaefer, Dan
Schaffer, Bob
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Sherman
Shimkus
Shuster
Sisisky
Skeen
Smith (MI)
Smith (NJ)
Smith (OR)
Smith (TX)
Smith, Adam
Smith, Linda
Snowbarger
Snyder
Solomon
Souder
Spence
Spratt
Stabenow
Stearns
Stenholm
Stump
Sununu
Talent
Tanner
Tauscher
Tauzin
Taylor (NC)
Thomas
Thornberry
Thune
Tiahrt
Traficant
Turner
Upton
Walsh
Wamp
Watkins
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
White
Whitfield
Wicker
Wolf
Young (AK)
Young (FL)

NOT VOTING--6

Berman
Farr
Frank (MA)
Gonzalez
Lewis (GA)
Schumer

{time} 1837

Mr. SMITH of Michigan changed his vote from ``aye'' to ``no.''
So the amendment was rejected.
The result of the vote was announced as above recorded.

Amendment No. 8 Offered By Mr. Gekas

The CHAIRMAN pro tempore. The pending business is the demand for a
recorded vote on amendment No. 8 offered by the gentleman from
Pennsylvania (Mr. Gekas) on which further proceedings were postponed
and on which the ayes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.

Recorded Vote

The CHAIRMAN pro tempore. A recorded vote has been demanded.
A recorded vote was ordered.
The CHAIRMAN pro tempore. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 222,
noes 204, not voting 7, as follows:

[Roll No. 221]

AYES--222

Andrews
Archer
Armey
Baker
Ballenger
Barcia
Barr
Barrett (NE)
Bartlett
Barton
Bass
Bateman
Bentsen
Bilbray
Bilirakis
Bishop
Bliley
Blunt
Boehner
Bonilla
Boswell
Boucher
Boyd
Brady (TX)
Brown (FL)
Bryant
Bunning
Burr
Burton
Callahan
Calvert
Camp
Campbell
Canady
Cannon
Chambliss
Chenoweth
Christensen
Coble
Coburn
Collins
Combest
Condit
Cook
Cooksey
Cox
Cramer
Crane
Crapo
Cubin
Cunningham
Davis (FL)
Davis (VA)
Deal
DeLay
Deutsch
Diaz-Balart
Dickey
Doggett
Dreier
Duncan
Edwards
Ehrlich
English
Ensign
Ewing
Foley
Forbes
Fossella
Fowler
Frost
Gallegly
Ganske
Gekas
Gibbons
Gillmor
Gilman
Goode
Goodlatte
Goodling
Goss
Graham
Granger
Green
Greenwood
Gutknecht
Hall (TX)
Hansen
Hastert
Hastings (FL)
Hastings (WA)
Hayworth
Hefley
Herger
Hill
Hilleary
Hinojosa
Horn
Hostettler
Hulshof
Hunter
Hutchinson
Hyde
Inglis
Jackson-Lee (TX)
Jenkins
John
Johnson, E. B.
Johnson, Sam
Jones
Kelly
Kim
King (NY)
Klug
Knollenberg
LaHood
Lampson
Latham
Lazio
Leach
Lewis (CA)
Lewis (KY)
Linder
Livingston
Lucas
Manzullo
McCollum
McCrery
McDade
McHugh
McInnis
McIntyre
McKeon
Meek (FL)
Mica
Miller (FL)
Mollohan
Moran (KS)
Myrick
Nethercutt
Neumann
Ney
Northup
Norwood
Nussle
Ortiz
Oxley
Packard
Pappas
Parker
Paul
Paxon
Pease
Peterson (PA)
Pickering
Pickett
Pitts
Pombo
Porter
Portman
Quinn
Radanovich
Rahall
Ramstad
Redmond
Reyes
Rodriguez
Rogan
Rogers
Ros-Lehtinen
Ryun
Salmon
Sandlin
Sanford
Scarborough
Schaefer, Dan
Schaffer, Bob
Sessions
Shadegg
Shaw
Shimkus
Shuster
Sisisky
Skeen
Smith (MI)
Smith (NJ)
Smith (OR)
Smith (TX)
Smith, Linda
Snowbarger
Solomon
Spence
Stearns
Stenholm
Stump
Sununu
Talent
Tauscher
Tauzin
Taylor (NC)
Thomas
Thornberry
Thune
Thurman
Tiahrt
Traficant
Turner
Walsh
Wamp
Watkins
Watts (OK)
Waxman
Weldon (FL)
Weldon (PA)
Weller
Wexler
White
Whitfield
Wicker
Wolf
Young (AK)
Young (FL)

NOES--204

Abercrombie
Ackerman
Aderholt
Allen
Bachus
Baesler
Baldacci
Barrett (WI)
Becerra
Bereuter
Berry
Blagojevich
Blumenauer
Boehlert
Bonior
Bono
Borski
Brady (PA)
Brown (CA)
Brown (OH)
Buyer
Capps
Cardin
Carson
Castle
Chabot
Clay
Clayton
Clement
Clyburn
Conyers
Costello
Coyne
Cummings
Danner
Davis (IL)
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dingell
Dixon
Dooley
Doolittle
Doyle
Dunn
Ehlers
Emerson
Engel
Eshoo
Etheridge
Evans
Everett
Fattah
Fazio
Filner
Fox
Frank (MA)
Franks (NJ)
Frelinghuysen
Furse
Gejdenson
Gephardt
Gilchrest
Gordon
Gutierrez
Hall (OH)
Hamilton
Harman
Hefner
Hilliard
Hinchey
Hobson
Hoekstra
Holden
Hooley
Houghton
Hoyer
Istook
Jackson (IL)
Jefferson
Johnson (CT)
Johnson (WI)
Kanjorski
Kaptur
Kasich
Kennedy (MA)
Kennedy (RI)
Kennelly
Kildee
Kilpatrick
Kind (WI)
Kingston
Kleczka
Klink
Kolbe
Kucinich
LaFalce
Lantos
Largent
LaTourette
Lee
Levin
Lipinski
LoBiondo
Lofgren
Lowey
Luther
Maloney (CT)
Maloney (NY)
Manton
Markey
Martinez
Mascara
Matsui
McCarthy (MO)
McCarthy (NY)
McDermott
McGovern
McHale
McIntosh
McKinney
McNulty
Meehan
Meeks (NY)
Menendez
Metcalf
Millender-McDonald
Miller (CA)
Minge
Mink
Moakley
Moran (VA)
Morella
Murtha
Nadler
Neal
Oberstar
Obey
Olver
Owens
Pallone
Pascrell
Pastor
Payne
Pelosi
Peterson (MN)
Petri
Pomeroy
Poshard
Price (NC)
Pryce (OH)
Rangel
Regula
Riggs
Riley
Rivers
Roemer
Rohrabacher
Rothman
Roukema
Roybal-Allard
Royce
Rush
Sabo
Sanchez
Sanders
Sawyer
Saxton
Scott
Sensenbrenner
Serrano
Shays
Sherman
Skaggs
Skelton
Slaughter
Smith, Adam
Snyder
Souder
Spratt
Stabenow
Stark
Stokes
Strickland
Stupak
Tanner
Taylor (MS)
Thompson
Tierney
Torres
Towns
Upton
Velazquez
Vento
Visclosky
Waters
Watt (NC)
Weygand
Wise
Woolsey
Wynn
Yates

NOT VOTING--7

Berman
Farr
Fawell
Ford
Gonzalez
Lewis (GA)
Schumer

{time} 1846

Messrs. ROEMER, KASICH, KENNEDY of Rhode Island, ADERHOLT, LoBIONDO,
and Ms. KILPATRICK changed their vote from ``aye'' to ``no.''

[[Page H4439]]

Mr. BARCIA changed his vote from ``no'' to ``aye.''
So the amendment was agreed to.
The result of the vote was announced as above recorded.

Amendment No. 9 Offered by Mr. Scott

The CHAIRMAN pro tempore (Mr. Calvert). The pending business is the
demand for a recorded vote on amendment No. 9 offered by the gentleman
from Virginia (Mr. Scott) on which further proceedings were postponed
and on which the noes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.

Recorded Vote

The CHAIRMAN pro tempore. A recorded vote has been demanded.
A recorded vote was ordered.
The CHAIRMAN pro tempore. This is a five-minute vote.
The vote was taken by electronic device, and there were--ayes 111,
noes 316, not voting 6, as follows:

[Roll No. 222]

AYES--111

Abercrombie
Ackerman
Allen
Baldacci
Barrett (WI)
Becerra
Bentsen
Bishop
Bonior
Brady (PA)
Brown (CA)
Capps
Carson
Clay
Clayton
Conyers
Coyne
Davis (FL)
Davis (IL)
DeFazio
DeGette
Delahunt
DeLauro
Deutsch
Dixon
Doggett
Dreier
Engel
Fattah
Filner
Ford
Furse
Gejdenson
Gephardt
Green
Gutierrez
Hamilton
Hefner
Hinchey
Hinojosa
Holden
Hooley
Jackson (IL)
Jackson-Lee (TX)
Kanjorski
Kaptur
Kilpatrick
Kind (WI)
Kleczka
Klink
LaFalce
Lampson
Lee
Luther
Maloney (CT)
Manton
Markey
Mascara
McCarthy (MO)
McCarthy (NY)
McGovern
McKinney
McNulty
Meeks (NY)
Menendez
Millender-McDonald
Miller (CA)
Mink
Moakley
Mollohan
Murtha
Neal
Olver
Ortiz
Owens
Pallone
Pascrell
Payne
Pelosi
Pickett
Pomeroy
Reyes
Rivers
Rogan
Rothman
Roybal-Allard
Rush
Sabo
Sanders
Sandlin
Scott
Sensenbrenner
Sisisky
Skaggs
Smith, Adam
Spratt
Stark
Stokes
Strickland
Stupak
Sununu
Tierney
Torres
Velazquez
Vento
Visclosky
Waters
Watt (NC)
Wexler
Woolsey
Yates

NOES--316

Aderholt
Andrews
Archer
Armey
Bachus
Baesler
Baker
Ballenger
Barcia
Barr
Barrett (NE)
Bartlett
Barton
Bass
Bateman
Bereuter
Berry
Bilbray
Bilirakis
Blagojevich
Bliley
Blunt
Boehlert
Boehner
Bonilla
Bono
Borski
Boswell
Boucher
Boyd
Brady (TX)
Brown (FL)
Brown (OH)
Bryant
Bunning
Burr
Burton
Buyer
Callahan
Calvert
Camp
Campbell
Canady
Cannon
Cardin
Castle
Chabot
Chambliss
Chenoweth
Christensen
Clement
Clyburn
Coble
Coburn
Collins
Combest
Condit
Cook
Cooksey
Costello
Cox
Cramer
Crane
Crapo
Cubin
Cummings
Cunningham
Danner
Davis (VA)
Deal
DeLay
Diaz-Balart
Dickey
Dicks
Dingell
Dooley
Doolittle
Doyle
Duncan
Dunn
Edwards
Ehlers
Ehrlich
Emerson
English
Ensign
Eshoo
Etheridge
Evans
Everett
Ewing
Fawell
Fazio
Foley
Forbes
Fossella
Fowler
Fox
Frank (MA)
Franks (NJ)
Frelinghuysen
Frost
Gallegly
Ganske
Gekas
Gibbons
Gilchrest
Gillmor
Gilman
Goode
Goodlatte
Goodling
Gordon
Goss
Graham
Granger
Greenwood
Gutknecht
Hall (OH)
Hall (TX)
Hansen
Harman
Hastert
Hastings (FL)
Hastings (WA)
Hayworth
Hefley
Herger
Hill
Hilleary
Hilliard
Hobson
Hoekstra
Horn
Hostettler
Houghton
Hoyer
Hulshof
Hunter
Hutchinson
Hyde
Inglis
Istook
Jefferson
Jenkins
John
Johnson (CT)
Johnson (WI)
Johnson, E. B.
Johnson, Sam
Jones
Kasich
Kelly
Kennedy (MA)
Kennedy (RI)
Kennelly
Kildee
Kim
King (NY)
Kingston
Klug
Knollenberg
Kolbe
Kucinich
LaHood
Lantos
Largent
Latham
LaTourette
Lazio
Leach
Levin
Lewis (CA)
Lewis (KY)
Linder
Lipinski
Livingston
LoBiondo
Lofgren
Lowey
Lucas
Maloney (NY)
Manzullo
Martinez
Matsui
McCollum
McCrery
McDade
McDermott
McHale
McHugh
McInnis
McIntosh
McIntyre
McKeon
Meehan
Meek (FL)
Metcalf
Mica
Miller (FL)
Minge
Moran (KS)
Moran (VA)
Morella
Myrick
Nadler
Nethercutt
Neumann
Ney
Northup
Norwood
Nussle
Oberstar
Obey
Oxley
Packard
Pappas
Parker
Pastor
Paul
Paxon
Pease
Peterson (MN)
Peterson (PA)
Petri
Pickering
Pitts
Pombo
Porter
Portman
Poshard
Price (NC)
Pryce (OH)
Quinn
Radanovich
Rahall
Ramstad
Rangel
Redmond
Regula
Riggs
Riley
Rodriguez
Roemer
Rogers
Rohrabacher
Ros-Lehtinen
Roukema
Royce
Ryun
Salmon
Sanchez
Sanford
Sawyer
Saxton
Scarborough
Schaefer, Dan
Schaffer, Bob
Serrano
Sessions
Shadegg
Shaw
Shays
Sherman
Shimkus
Shuster
Skeen
Skelton
Slaughter
Smith (MI)
Smith (NJ)
Smith (OR)
Smith (TX)
Smith, Linda
Snowbarger
Snyder
Solomon
Souder
Spence
Stabenow
Stearns
Stenholm
Stump
Talent
Tanner
Tauscher
Tauzin
Taylor (MS)
Taylor (NC)
Thomas
Thompson
Thornberry
Thune
Thurman
Tiahrt
Towns
Traficant
Turner
Upton
Walsh
Wamp
Watkins
Watts (OK)
Waxman
Weldon (FL)
Weldon (PA)
Weller
Weygand
White
Whitfield
Wicker
Wise
Wolf
Wynn
Young (AK)
Young (FL)

NOT VOTING--6

Berman
Blumenauer
Farr
Gonzalez
Lewis (GA)
Schumer

{time} 1853

Mrs. KENNELLY of Connecticut changed her vote from ``aye'' to ``no.''
So the amendment was rejected.
The result of the vote was announced as above recorded.

Amendment in the Nature of a Substitute No. 12 Offered by Mr. Nadler

The CHAIRMAN pro tempore. The pending business is the demand for a
recorded vote on amendment in the nature of a substitute No. 12 offered
by the gentleman from New York (Mr. Nadler) on which further
proceedings were postponed and on which the noes prevailed by voice
vote.
The Clerk will redesignate the amendment in the nature of a
substitute.
The Clerk redesignated the amendment in the nature of a substitute.

Recorded Vote

[Roll No. 223]

AYES--140

Abercrombie
Ackerman
Allen
Baldacci
Becerra
Bishop
Blumenauer
Bonior
Borski
Brady (PA)
Brown (CA)
Brown (FL)
Brown (OH)
Capps
Carson
Clay
Clayton
Clyburn
Conyers
Coyne
Cummings
Davis (IL)
DeFazio
DeGette
Delahunt
DeLauro
Dicks
Dingell
Dixon
Doyle
Engel
Eshoo
Etheridge
Evans
Fattah
Fazio
Filner
Ford
Furse
Gejdenson
Gephardt
Gutierrez
Hall (OH)
Harman
Hastings (FL)
Hefner
Hilliard
Hinchey
Hinojosa
Holden
Hooley
Jackson (IL)
Jefferson
Johnson (WI)
Kanjorski
Kaptur
Kennedy (MA)
Kennelly
Kildee
Kilpatrick
Klink
Kucinich
LaFalce
Lantos
Lee
Levin
Lofgren
Lowey
Luther
Maloney (NY)
Manton
Markey
Martinez
Mascara
Matsui
McCarthy (MO)
McCarthy (NY)
McDermott
McGovern
McHale
McKinney
McNulty
Meehan
Meek (FL)
Meeks (NY)
Millender-McDonald
Miller (CA)
Minge
Mink
Moakley
Murtha
Nadler
Neal
Oberstar
Obey
Olver
Ortiz
Owens
Pallone
Pascrell
Pastor
Payne
Pelosi
Pomeroy
Poshard
Price (NC)
Rahall
Rangel
Reyes
Rivers
Roybal-Allard
Rush
Sabo
Sanchez
Sanders
Sawyer
Scott
Serrano
Skaggs
Slaughter
Stabenow
Stark
Stokes
Strickland
Stupak
Thompson
Tierney
Torres
Towns
Velazquez
Vento
Visclosky
Waters
Watt (NC)
Waxman
Wexler
Wise
Woolsey
Wynn
Yates

NOES--288

Aderholt
Andrews
Archer
Armey
Bachus
Baesler
Baker
Ballenger
Barcia
Barr
Barrett (NE)
Barrett (WI)
Bartlett
Barton
Bass
Bateman
Bentsen
Bereuter
Berry
Bilbray
Bilirakis
Blagojevich
Bliley
Blunt
Boehlert
Boehner
Bonilla
Bono
Boswell
Boucher
Boyd
Brady (TX)
Bryant
Bunning
Burr
Burton
Buyer
Callahan
Calvert
Camp
Campbell
Canady
Cannon
Cardin
Castle
Chabot
Chambliss
Chenoweth

[[Page H4440]]

Christensen
Clement
Coble
Coburn
Collins
Combest
Condit
Cook
Cooksey
Costello
Cox
Cramer
Crane
Crapo
Cubin
Cunningham
Danner
Davis (FL)
Davis (VA)
Deal
DeLay
Deutsch
Diaz-Balart
Dickey
Doggett
Dooley
Doolittle
Dreier
Duncan
Dunn
Edwards
Ehlers
Ehrlich
Emerson
English
Ensign
Everett
Ewing
Fawell
Foley
Forbes
Fossella
Fowler
Fox
Frank (MA)
Franks (NJ)
Frelinghuysen
Frost
Gallegly
Ganske
Gekas
Gibbons
Gilchrest
Gillmor
Gilman
Goode
Goodlatte
Goodling
Gordon
Goss
Graham
Granger
Green
Greenwood
Gutknecht
Hall (TX)
Hamilton
Hansen
Hastert
Hastings (WA)
Hayworth
Hefley
Herger
Hill
Hilleary
Hobson
Hoekstra
Horn
Hostettler
Houghton
Hoyer
Hulshof
Hunter
Hutchinson
Hyde
Inglis
Istook
Jackson-Lee (TX)
Jenkins
John
Johnson (CT)
Johnson, E. B.
Johnson, Sam
Jones
Kasich
Kelly
Kennedy (RI)
Kim
Kind (WI)
King (NY)
Kingston
Kleczka
Klug
Knollenberg
Kolbe
LaHood
Lampson
Largent
Latham
LaTourette
Lazio
Leach
Lewis (CA)
Lewis (KY)
Linder
Lipinski
Livingston
LoBiondo
Lucas
Maloney (CT)
Manzullo
McCollum
McCrery
McDade
McHugh
McInnis
McIntosh
McIntyre
McKeon
Menendez
Metcalf
Mica
Miller (FL)
Mollohan
Moran (KS)
Moran (VA)
Morella
Myrick
Nethercutt
Neumann
Ney
Northup
Norwood
Nussle
Oxley
Packard
Pappas
Parker
Paul
Paxon
Pease
Peterson (MN)
Peterson (PA)
Petri
Pickering
Pickett
Pitts
Pombo
Porter
Portman
Pryce (OH)
Quinn
Radanovich
Ramstad
Redmond
Regula
Riggs
Riley
Rodriguez
Roemer
Rogan
Rogers
Rohrabacher
Ros-Lehtinen
Rothman
Roukema
Royce
Ryun
Salmon
Sandlin
Sanford
Saxton
Scarborough
Schaefer, Dan
Schaffer, Bob
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Sherman
Shimkus
Shuster
Sisisky
Skeen
Skelton
Smith (MI)
Smith (NJ)
Smith (OR)
Smith (TX)
Smith, Adam
Smith, Linda
Snowbarger
Snyder
Solomon
Souder
Spence
Spratt
Stearns
Stenholm
Stump
Sununu
Talent
Tanner
Tauscher
Tauzin
Taylor (MS)
Taylor (NC)
Thomas
Thornberry
Thune
Thurman
Tiahrt
Traficant
Turner
Upton
Walsh
Wamp
Watkins
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
Weygand
White
Whitfield
Wicker
Wolf
Young (AK)
Young (FL)

NOT VOTING--5

Berman
Farr
Gonzalez
Lewis (GA)
Schumer

{time} 1901

Messrs. RODRIGUEZ, BARCIA, EDWARDS, Mrs. EDDIE BERNICE JOHNSON of
Texas and Ms. JACKSON-LEE of Texas changed their vote from ``aye'' to
``no.''
So the amendment in the nature of a substitute was rejected.
The result of the vote was announced as above recorded.
The CHAIRMAN pro tempore (Mr. Calvert). The question is on the
committee amendment in the nature of a substitute, as amended.
The committee amendment in the nature of a substitute, as amended,
was agreed to.
The CHAIRMAN pro tempore. Under the rule, the Committee rises.
Accordingly, the Committee rose; and the Speaker pro tempore (Mr.
Hansen) having assumed the chair, Mr. Calvert, Chairman pro tempore of
the Committee of the Whole House on the State of the Union, reported
that the Committee, having had under consideration the bill (H.R. 3150)
to amend title 11 of the United States Code, and for other purposes,
pursuant to House Resolution 462, he reported the bill back to the
House with an amendment adopted by the Committee of the Whole.
The SPEAKER pro tempore. Under the rule, the previous question is
ordered.
Is a separate vote demanded on any amendment to the committee
amendment in the nature of a substitute adopted by the Committee of the
Whole? If not, the question is on the amendment.
The amendment was agreed to.
The SPEAKER pro tempore. The question is on the engrossment and third
reading of the bill.
The bill was ordered to be engrossed and read a third time, and was
read the third time.

Motion to Recommit Offered by Mr. Conyers

Mr. CONYERS. Mr. Speaker, I offer a motion to recommit.
The SPEAKER pro tempore. Is the gentleman opposed to the bill?
Mr. CONYERS. Mr. Speaker, yes, I am.
The SPEAKER pro tempore. The Clerk will report the motion to
recommit.
The Clerk read as follows:

Mr. Conyers of Michigan moves to recommit the bill (H.R.
3150) to the Committee on the Judiciary with instructions to
report the bill back to the House forthwith, with the
following amendments:
Page 6, line 11, insert the following before the 1st
semicolon:
``, but excludes (1) maintenance for or support of a child
of the debtor, received by the debtor, and (2) current
alimony, maintenance, or support paid by the debtor for the
benefit of a spouse, former spouse, or child of the
debtor,''.
Page 48, after line 13, insert the following (and make such
technical and conforming changes as may be appropriate):

SEC. 119B. PROTECTION AGAINST REAFFIRMATION AGREEMENTS
ADVERSELY AFFECTING CHILD SUPPORT.

Section 524 of title 11, United States Code, is amended by
adding at the end the following:
``(i) Notwithstanding any other provision of this title, an
agreement of the kind described in subsection (c) shall be
void unless the court determines that such agreement will not
have an adverse impact on the ability of the debtor to
support a dependent of the debtor.''.
Page 76, line 12, insert ``and any debt of a kind described
in paragraph (6), (9), or (13) of section 523(a) of this
title,'' before ``shall''.
Page 76, line 17, strike the close quotation marks and the
period at the end.
Page 76, after line 17, insert the following:
``(b)(1) For purposes preserving the priority established
in subsection (a), the holder of claim for a debt of a kind
described in paragraph (2), (4), or (19) of section 523(a) of
this title that is not discharged may not take any action to
obtain payment or collection (including engaging in any
communication with the debtor or with any person who holds
property of the debtor) of such debt if such holder--
``(A) knew or should have known that taking such action, or
obtaining payment of such debt, would impair the ability of
the debtor to pay a debt that has priority under such
subsection; or
``(B) failed to verify immediately before taking such
action, by good faith means designed to identify all debts
that have priority under such subsection, that the debtor
does not then owe any debt that has priority under subsection
(a).
``(2) If such holder violates paragraph (1), such holder
shall be liable to any person injured by such violation for
the sum of $3000, actual damages, and a reasonable attorney's
fee.''.

Mr. CONYERS (during the reading). Mr. Speaker, I ask unanimous
consent that the motion to recommit be considered as read and printed
in the Record.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Michigan?
There was no objection.
The SPEAKER pro tempore. The gentleman from Michigan (Mr. Conyers)
will be recognized for 5 minutes, and the gentleman from Pennsylvania
(Mr. Gekas) will be recognized for 5 minutes.
The Chair recognizes the gentleman from Michigan (Mr. Conyers).
Mr. CONYERS. Mr. Speaker, this is a very simple and straightforward
motion to recommit. It acknowledges the bankruptcy rights of creditors
who are drunk driving victims and victims of crimes.
Mr. Speaker, the present bill does not make a single change to
protect the rights of crime victims forced to compete against credit
card companies in bankruptcy. This is why the Mothers Against Drunk
Driving are opposed to the bill, and the National Organization for
Victim Assistance are strongly opposed to the bill.
My amendment would ensure that crime victims receive the same rights
to preempt credit card debts that alimony creditors receive in the
bill.
Mr. NADLER. Mr. Speaker, will the gentleman yield?
Mr. CONYERS. I yield to the gentleman from New York.
Mr. NADLER. Mr. Speaker, this motion makes four changes to the
underlying bill to protect child support and alimony payments and
victims of crime and drunk driving.
First, the motion clarifies that child support and alimony payments
are to be excluded from the means test. The majority may try to claim
that these payments are accounted for by IRS guidelines, but the
bankruptcy experts disagree. In any event, there can be no harm in
Congress clearly specifying

[[Page H4441]]

that child support should be deducted when calculating the means test.
We should not leave our families at risk based on decisions made by IRS
bureaucrats.
Second, the motion protects against reaffirmation agreements that
adversely impact family support obligations. It is no secret that
unscrupulous creditors can end-run the bankruptcy process by forcing
debtors to reaffirm their debt. If this happens, none of the supposed
child support protections provided under the bill would apply. We fix
this problem by making sure that reaffirmation agreements do not make
it more difficult for families to pay family support.
The motion also acknowledges the bankruptcy rights of creditors who
are drunk driving victims and other victims of crimes, as the gentleman
from Michigan (Mr. Conyers) mentioned.
Finally, the motion provides for a real mechanism to enforce
protections for child support and alimony payments. The changes made by
the bill to protect child care payments create a right with no remedy.
This amendment makes clear that credit card companies who illegally
collect money that should be going to child care are subject to damage
and statutory fines. This is the only way to truly protect child care
payments outside of bankruptcy after the discharge.
Mr. Speaker, I urge the Members to vote for this motion to recommit
which protects our families and victims of crime from aggressive credit
collectors.
Ms. JACKSON-LEE of Texas. Mr. Speaker, will the gentleman yield?
Mr. CONYERS. I yield to the gentlewoman from Texas.
Ms. JACKSON-LEE of Texas. Mr. Speaker, about a year ago I rose on the
floor of the House when we were facing a major dilemma and asked the
question that has been asked by Solomon: Who loves the baby the most?
Whether it was the mother who was willing to cut the baby in half and
share, or whether or not it was the mother who said, ``Here you take
it.''
Mr. Speaker, I ask this question today as we look at a bill that
hurts children. Which one of us will be able to respond to Willie
Sorrells who said: I am writing you regarding the proposed new
bankruptcy laws. I am currently being forced to file bankruptcy as a
last resort because I have recently gone through a terrible divorce
from a marriage of 16 years, and my wife left me with the
responsibility of our children and the majority of our community debt,
complicated by the fact that she earns more income than I.
This Willie Sorrells, a single parent, will be denied the opportunity
to protect his alimony or child support because credit card companies
and others will be able to grapple after the only income that this
gentleman will be able to have.
Mr. Speaker, the motion to recommit reestablishes the importance of
child support and alimony. It reestablishes the importance of
recognizing that none of us can determine the horns of dilemma when
people fall upon hard times, whether or not it is catastrophic
illnesses; whether or not it has to do with being unemployed, as 60
percent of those who file for bankruptcy are unemployed. The 300,000
who face divorce and who need child support, the motion to recommit
reestablishes the right of the support child, one, to be of high
priority; but two, not having to fight for the minimal income that has
to be paid for the other debts.
I would say, Mr. Speaker, that we are now on the horns of a dilemma.
Who loves the baby most? The one who is willing to cut the baby in
half, or the one who is willing to give the baby? I would say the one
who is willing to nurture and protect the baby.
Mr. Speaker, let us vote for the motion to recommit. Support child
support, support alimony, support working Americans, keep the door of
opportunity open and save $214 million that H.R. 3150 requires us to
pay.
Mr. CONYERS. Mr. Speaker, reclaiming my time, I urge Members to
support the substitute and vote against this bill.
Mr. GEKAS. Mr. Speaker, the concerns that are contained in the motion
to recommit have already been more than adequately addressed in the
bill that is before us, matters of child support priority, victims'
rights. In fact, H.R. 3150, the bill which we are about to pass,
contains rights for every American, specially those citizens who become
overwhelmed with debt who will need a fresh start.
We accord that responsibility and that right to those people who are
overburdened with debt. But at the same time we say loudly and clearly
that the time has come that we will no longer permit a system to be
abused and to be used as an instrument by people who want to avoid debt
and who want to avoid repayment of proper obligations.
So if Members want to change the system, reform it so that we can
bring personal responsibility back to that system, they must reject the
motion to recommit and eventually vote for the bill. Jobs and
opportunities that we so much crave in our society to keep our economy
on a stable course, as it now is, requires, in the words of the
gentleman from Youngstown, Ohio (Mr. Traficant), requires us to have a
system which will protect the economy and protect jobs.
Mr. Speaker, that is what this bill does. It nurtures our economy. I
ask Members to vote ``no'' on the motion to recommit and ``yes'' on
final passage.

{time} 1915

The SPEAKER pro tempore (Mr. Hansen). Without objection, the previous
question is ordered on the motion to recommit.
There was no objection.
The SPEAKER pro tempore. The question is on the motion to recommit.
The question was taken; and the Speaker pro tempore announced that
the noes appeared to have it.

Recorded Vote

Mr. CONYERS. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. Pursuant to the provisions of clause 5 of
rule XV, the Chair announces that he will reduce to a minimum of 5
minutes the period of time within which a vote by electronic device, if
ordered, will be taken on the question of final passage.
The vote was taken by electronic device, and there were--ayes 153,
noes 270, not voting 10, as follows:

[Roll No. 224]

AYES--153

Abercrombie
Ackerman
Allen
Baldacci
Barcia
Barrett (WI)
Becerra
Bentsen
Bishop
Blumenauer
Bonior
Borski
Brady (PA)
Brown (CA)
Brown (FL)
Brown (OH)
Capps
Cardin
Carson
Clay
Clayton
Clyburn
Conyers
Costello
Coyne
Cummings
Davis (IL)
DeFazio
DeGette
Delahunt
DeLauro
Dingell
Dixon
Doggett
Doyle
Edwards
Engel
Ensign
Eshoo
Etheridge
Evans
Fattah
Filner
Ford
Frost
Furse
Gejdenson
Gephardt
Green
Gutierrez
Hall (OH)
Hastings (FL)
Hefner
Hilliard
Hinchey
Hinojosa
Holden
Hooley
Jackson (IL)
Jackson-Lee (TX)
Jefferson
Johnson (WI)
Johnson, E.B.
Kanjorski
Kaptur
Kennedy (MA)
Kennelly
Kildee
Kilpatrick
Klink
Kucinich
LaFalce
Lampson
Lantos
Lee
Levin
Lofgren
Lowey
Luther
Maloney (NY)
Manton
Markey
Martinez
Mascara
Matsui
McCarthy (MO)
McCarthy (NY)
McDermott
McGovern
McHale
McIntyre
McKinney
McNulty
Meehan
Meek (FL)
Meeks (NY)
Millender-McDonald
Miller (CA)
Minge
Mink
Moakley
Moran (VA)
Nadler
Neal
Oberstar
Obey
Olver
Ortiz
Owens
Pallone
Pascrell
Pastor
Payne
Pelosi
Pomeroy
Poshard
Price (NC)
Rahall
Rangel
Reyes
Rivers
Rodriguez
Roybal-Allard
Rush
Sabo
Sanders
Sandlin
Sawyer
Scott
Serrano
Skaggs
Slaughter
Spratt
Stabenow
Stark
Stokes
Strickland
Stupak
Thompson
Thurman
Tierney
Torres
Towns
Velazquez
Vento
Visclosky
Waters
Watt (NC)
Waxman
Wexler
Wise
Woolsey
Yates

NOES--270

Aderholt
Andrews
Archer
Armey
Bachus
Baesler
Baker
Ballenger
Barr
Barrett (NE)
Bartlett
Barton
Bass
Bateman
Bereuter
Berry
Bilbray
Bilirakis
Blagojevich
Bliley
Blunt
Boehlert
Boehner
Bonilla
Bono
Boswell
Boucher
Boyd
Brady (TX)
Bryant
Bunning
Burr
Burton
Buyer
Callahan
Calvert
Camp
Campbell
Canady
Cannon
Castle
Chabot
Chambliss
Chenoweth
Christensen
Clement
Coble
Coburn
Collins
Combest
Condit

[[Page H4442]]

Cook
Cooksey
Cramer
Crane
Crapo
Cubin
Cunningham
Danner
Davis (FL)
Davis (VA)
Deal
DeLay
Deutsch
Diaz-Balart
Dickey
Dooley
Doolittle
Dreier
Duncan
Dunn
Ehlers
Ehrlich
Emerson
English
Everett
Ewing
Fazio
Foley
Forbes
Fossella
Fowler
Fox
Frank (MA)
Franks (NJ)
Frelinghuysen
Gallegly
Ganske
Gekas
Gibbons
Gilchrest
Gillmor
Gilman
Goode
Goodlatte
Goodling
Gordon
Goss
Graham
Granger
Greenwood
Gutknecht
Hall (TX)
Hamilton
Hansen
Harman
Hastings (WA)
Hayworth
Hefley
Herger
Hill
Hilleary
Hobson
Hoekstra
Horn
Hostettler
Houghton
Hoyer
Hulshof
Hunter
Hutchinson
Hyde
Inglis
Istook
Jenkins
John
Johnson (CT)
Johnson, Sam
Jones
Kasich
Kelly
Kennedy (RI)
Kim
Kind (WI)
King (NY)
Kingston
Kleczka
Klug
Knollenberg
Kolbe
LaHood
Latham
LaTourette
Lazio
Leach
Lewis (CA)
Lewis (KY)
Linder
Lipinski
Livingston
LoBiondo
Lucas
Maloney (CT)
Manzullo
McCollum
McCrery
McDade
McHugh
McInnis
McIntosh
McKeon
Menendez
Metcalf
Mica
Miller (FL)
Mollohan
Moran (KS)
Morella
Murtha
Myrick
Nethercutt
Neumann
Ney
Northup
Norwood
Nussle
Oxley
Packard
Pappas
Parker
Paul
Paxon
Pease
Peterson (MN)
Peterson (PA)
Petri
Pickering
Pickett
Pitts
Pombo
Porter
Portman
Pryce (OH)
Quinn
Radanovich
Ramstad
Redmond
Regula
Riggs
Riley
Roemer
Rogan
Rogers
Rohrabacher
Ros-Lehtinen
Rothman
Roukema
Royce
Ryun
Salmon
Sanchez
Sanford
Saxton
Scarborough
Schaefer, Dan
Schaffer, Bob
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Sherman
Shimkus
Shuster
Sisisky
Skeen
Skelton
Smith (MI)
Smith (NJ)
Smith (OR)
Smith (TX)
Smith, Adam
Smith, Linda
Snowbarger
Snyder
Solomon
Souder
Spence
Stearns
Stenholm
Stump
Sununu
Talent
Tanner
Tauscher
Tauzin
Taylor (MS)
Taylor (NC)
Thomas
Thornberry
Thune
Tiahrt
Traficant
Turner
Upton
Walsh
Wamp
Watkins
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
Weygand
White
Whitfield
Wicker
Wolf
Wynn
Young (AK)
Young (FL)

NOT VOTING--10

Berman
Cox
Dicks
Farr
Fawell
Gonzalez
Hastert
Largent
Lewis (GA)
Schumer

{time} 1931

Mr. BERRY changed his vote from ``aye'' to ``no.''
Mr. MORAN of Virginia changed his vote from ``no'' to ``aye.''
So the motion to recommit was rejected.
The result of the vote was announced as above recorded.
The SPEAKER pro tempore (Mr. Hansen). The question is on the passage
of the bill.
The question was taken; and the Speaker pro tempore announced that
the ayes appeared to have it.

Recorded Vote

Mr. CONYERS. Mr. Speaker, I demand a recorded vote.
A recorded vote was ordered.
The SPEAKER pro tempore. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 306,
noes 118, not voting 9, as follows:

[Roll No. 225]

AYES--306

Aderholt
Andrews
Archer
Armey
Bachus
Baesler
Baker
Baldacci
Ballenger
Barcia
Barr
Barrett (NE)
Bartlett
Barton
Bass
Bateman
Bentsen
Bereuter
Berry
Bilbray
Bilirakis
Bishop
Blagojevich
Bliley
Blumenauer
Blunt
Boehlert
Boehner
Bonilla
Bono
Boswell
Boucher
Boyd
Bryant
Bunning
Burr
Burton
Buyer
Callahan
Calvert
Camp
Campbell
Canady
Cannon
Capps
Cardin
Castle
Chabot
Chambliss
Chenoweth
Christensen
Clement
Clyburn
Coble
Coburn
Collins
Combest
Condit
Cook
Cooksey
Cox
Cramer
Crane
Crapo
Cubin
Cummings
Cunningham
Danner
Davis (FL)
Davis (VA)
Deal
DeLay
Deutsch
Diaz-Balart
Dickey
Dicks
Doggett
Dooley
Doolittle
Dreier
Duncan
Dunn
Ehlers
Ehrlich
Emerson
English
Ensign
Etheridge
Everett
Ewing
Fawell
Fazio
Foley
Forbes
Fossella
Fowler
Fox
Frank (MA)
Franks (NJ)
Frelinghuysen
Frost
Gallegly
Ganske
Gekas
Gibbons
Gilchrest
Gillmor
Gilman
Goode
Goodlatte
Goodling
Gordon
Goss
Graham
Granger
Greenwood
Gutknecht
Hall (TX)
Hamilton
Hansen
Harman
Hastert
Hastings (WA)
Hayworth
Hefley
Herger
Hill
Hilleary
Hoekstra
Holden
Hooley
Horn
Hostettler
Houghton
Hoyer
Hulshof
Hunter
Hutchinson
Hyde
Inglis
Istook
Jefferson
Jenkins
John
Johnson (CT)
Johnson (WI)
Johnson, Sam
Jones
Kasich
Kelly
Kennedy (RI)
Kennelly
Kim
Kind (WI)
King (NY)
Kingston
Kleczka
Klug
Knollenberg
Kolbe
LaHood
Latham
LaTourette
Lazio
Leach
Lewis (CA)
Lewis (KY)
Linder
Lipinski
Livingston
LoBiondo
Lucas
Luther
Maloney (CT)
Manzullo
McCarthy (MO)
McCarthy (NY)
McCollum
McCrery
McDade
McHale
McHugh
McInnis
McIntosh
McIntyre
McKeon
Menendez
Metcalf
Mica
Miller (FL)
Minge
Mollohan
Moran (KS)
Moran (VA)
Morella
Myrick
Nethercutt
Neumann
Ney
Northup
Norwood
Nussle
Oxley
Packard
Pappas
Parker
Pascrell
Pastor
Paul
Paxon
Pease
Peterson (MN)
Peterson (PA)
Petri
Pickering
Pickett
Pitts
Pombo
Pomeroy
Porter
Portman
Price (NC)
Pryce (OH)
Quinn
Radanovich
Ramstad
Regula
Riggs
Riley
Rivers
Roemer
Rogan
Rogers
Rohrabacher
Ros-Lehtinen
Rothman
Roukema
Royce
Ryun
Salmon
Sandlin
Sanford
Saxton
Scarborough
Schaefer, Dan
Schaffer, Bob
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Sherman
Shimkus
Shuster
Sisisky
Skeen
Skelton
Smith (MI)
Smith (NJ)
Smith (OR)
Smith (TX)
Smith, Adam
Smith, Linda
Snowbarger
Snyder
Solomon
Souder
Spence
Spratt
Stabenow
Stearns
Stenholm
Strickland
Stump
Sununu
Talent
Tanner
Tauscher
Tauzin
Taylor (MS)
Taylor (NC)
Thomas
Thornberry
Thune
Tiahrt
Towns
Traficant
Turner
Upton
Velazquez
Walsh
Wamp
Watkins
Watts (OK)
Weldon (FL)
Weldon (PA)
Weller
Weygand
White
Whitfield
Wicker
Wise
Wolf
Wynn
Young (AK)
Young (FL)

NOES--118

Abercrombie
Ackerman
Allen
Barrett (WI)
Becerra
Bonior
Borski
Brady (PA)
Brown (CA)
Brown (FL)
Brown (OH)
Carson
Clay
Clayton
Conyers
Costello
Coyne
Davis (IL)
DeFazio
DeGette
Delahunt
DeLauro
Dingell
Dixon
Doyle
Edwards
Engel
Eshoo
Evans
Fattah
Filner
Ford
Furse
Gejdenson
Gephardt
Green
Gutierrez
Hall (OH)
Hastings (FL)
Hefner
Hilliard
Hinchey
Hinojosa
Jackson (IL)
Jackson-Lee (TX)
Johnson, E. B.
Kanjorski
Kaptur
Kennedy (MA)
Kildee
Kilpatrick
Klink
Kucinich
LaFalce
Lampson
Lantos
Lee
Levin
Lofgren
Lowey
Maloney (NY)
Manton
Markey
Martinez
Mascara
Matsui
McDermott
McGovern
McKinney
McNulty
Meehan
Meek (FL)
Meeks (NY)
Millender-McDonald
Miller (CA)
Mink
Moakley
Murtha
Nadler
Neal
Oberstar
Obey
Olver
Ortiz
Owens
Pallone
Payne
Pelosi
Poshard
Rahall
Rangel
Reyes
Rodriguez
Roybal-Allard
Rush
Sabo
Sanchez
Sanders
Sawyer
Scott
Serrano
Skaggs
Slaughter
Stark
Stokes
Stupak
Thompson
Thurman
Tierney
Torres
Vento
Visclosky
Waters
Watt (NC)
Waxman
Wexler
Woolsey
Yates

NOT VOTING--9

Berman
Brady (TX)
Farr
Gonzalez
Hobson
Largent
Lewis (GA)
Redmond
Schumer

{time} 1938

So the bill was passed.
The result of the vote was announced as above recorded.
A motion to reconsider was laid on the table.

____________________