[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

  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 140, 
noes 288, not voting 5, as follows:

                             [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.

                          ____________________