[Congressional Record Volume 144, Number 141 (Friday, October 9, 1998)]
[Senate]
[Page S12151]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     BANKRUPTCY REFORM ACT OF 1998

  Mrs. HUTCHISON. Mr. President, I rise to talk about the bankruptcy 
reform bill that we have just proceeded to and to say that this is a 
very important reform bill.
  I want to commend Senator Chuck Grassley for the work he has done on 
this bill and to specifically talk about one part of this bill which 
was very important to me. That is the homestead exemption that is a 
part of the Texas Constitution.
  I worked with Senator Grassley and Senator Hatch when this bill was 
coming to the floor earlier this month to make sure that, by the time 
the bill was finished, it would take into account those States that 
have constitutional provisions, as my State does, which provide for 
some sort of homestead exemption.
  In my home State of Texas, we have had a homestead exemption under 
our bankruptcy laws and in the constitution since the 1840s, actually; 
this is not something that has come about lately. But because many 
farmers and ranchers were very worried about losing their livelihoods 
if they ever got into a temporary situation--they were worried that 
they would lose their ability to maintain their families and their 
livelihoods--so we have a constitutional provision. It was important to 
me that we keep it.
  The first bill that passed out of the Senate did not have that. But I 
had the assurance of Senator Grassley that he would work with me to 
make sure that a State like mine would not be overrun on this very 
important point. And, in fact, Senator Grassley is true to his word. I 
cannot say enough good things about the fact that he kept his word to 
the letter. We were able to come to an agreement that kept the Texas 
constitutional provision for the homestead exemption intact. That is in 
the bill that will go forward.
  I hope we will be able to pass this bill, send it to the President, 
put it on his desk, and that he will sign it. But if in fact that isn't 
the case, I hope we will be able to work on this next year to have real 
bankruptcy reform so that people will not be able to willingly walk 
away from their debts, but nevertheless that will also take into 
account that there are States which have constitutions about which we 
feel very strongly, that this is a part of our heritage. It is one that 
I will work tirelessly to see continued.
  Mr. President, I thank the Presiding Officer. I appreciate very much 
the opportunity to work on this with Senator Grassley and Senator 
Hatch. I hope we will prevail either in the next few days or in the 
next year.
  Thank you, Mr. President. I yield the floor.
  Mr. DASCHLE addressed the Chair.
  The PRESIDING OFFICER. Under the previous order, the Democratic 
leader is recognized.
  Mr. DASCHLE. I thank the Chair.

                          ____________________