[Congressional Record Volume 146, Number 9 (Monday, February 7, 2000)]
[Senate]
[Pages S393-S453]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                     BANKRUPTCY REFORM ACT OF 1999

  H.R. 833, as amended and passed by the Senate on February 2, 2000, is 
as follows:

         Resolved, That the bill from the House of Representatives 
     (H.R. 833) entitled ``An Act to amend title 11 of the United 
     States Code, and for other purposes.'', do pass with the 
     following amendment:
       Strike out all after the enacting clause and insert:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.

                    TITLE I--NEEDS-BASED BANKRUPTCY

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

                 TITLE II--ENHANCED CONSUMER PROTECTION

          Subtitle A--Penalties for Abusive Creditor Practices

Sec. 201. Promotion of alternative dispute resolution.
Sec. 202. Effect of discharge.
Sec. 203. Discouraging abuse of reaffirmation practices.

                   Subtitle B--Priority Child Support

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

                 Subtitle C--Other Consumer Protections

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

                TITLE III--DISCOURAGING BANKRUPTCY ABUSE

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

       TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS

           Subtitle A--General Business Bankruptcy Provisions

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

            Subtitle B--Small Business Bankruptcy Provisions

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

                TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS

Sec. 501. Petition and proceedings related to petition.
Sec. 502. Applicability of other sections to chapter 9.

           TITLE VI--IMPROVED BANKRUPTCY STATISTICS AND DATA

Sec. 601. Audit procedures.
Sec. 602. Improved bankruptcy statistics.
Sec. 603. Uniform rules for the collection of bankruptcy data.
Sec. 604. Sense of Congress regarding availability of bankruptcy data.

                  TITLE VII--BANKRUPTCY TAX PROVISIONS

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

           TITLE VIII--ANCILLARY AND OTHER CROSS-BORDER CASES

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

                TITLE IX--FINANCIAL CONTRACT PROVISIONS

Sec. 901. Bankruptcy Code amendments.
Sec. 902. Damage measure.
Sec. 903. Asset-backed securitizations.
Sec. 904. Effective date; application of amendments.

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       TITLE X--PROTECTION OF FAMILY FARMERS AND FAMILY FISHERMEN

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

              TITLE XI--HEALTH CARE AND EMPLOYEE BENEFITS

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

       TITLE XII--AMENDMENTS TO FAIR LABOR STANDARDS ACT OF 1938

Sec. 1201. Minimum wage.
Sec. 1202. Regular rate for overtime purposes.

                         TITLE XIII--TAX RELIEF

Sec. 1300. Amendment of 1986 code.

                 Subtitle A--Small Business Tax Relief

Sec. 1301. Increase in expensing limitation to $30,000.
Sec. 1302. Repeal of temporary unemployment tax.
Sec. 1303. Full deduction of health insurance costs for self-employed 
              individuals.
Sec. 1304. Permanent extension of work opportunity tax credit.
Sec. 1305. Small businesses allowed increased deduction for meal and 
              entertainment expenses.

     Subtitle B--Deduction for Health and Long-Term Care Insurance

Sec. 1311. Deduction for health and long-term care insurance costs of 
              individuals not participating in employer-subsidized 
              health plans.

                     Subtitle C--Pension Tax Relief

                       Part I--Expanding Coverage

Sec. 1321. Increase in benefit and contribution limits.
Sec. 1322. Plan loans for subchapter s owners, partners, and sole 
              proprietors.
Sec. 1323. Modification of top-heavy rules.
Sec. 1324. Elective deferrals not taken into account for purposes of 
              deduction limits.
Sec. 1325. Repeal of coordination requirements for deferred 
              compensation plans of State and local governments and 
              tax-exempt organizations.
Sec. 1326. Elimination of user fee for requests to IRS regarding 
              pension plans.
Sec. 1327. Deduction limits.
Sec. 1328. Option to treat elective deferrals as after-tax 
              contributions.

                 Part II--Enhancing Fairness for Women

Sec. 1331. Catchup contributions for individuals age 50 or over.
Sec. 1332. Equitable treatment for contributions of employees to 
              defined contribution plans.
Sec. 1333. Faster vesting of certain employer matching contributions.
Sec. 1334. Simplify and update the minimum distribution rules.
Sec. 1335. Clarification of tax treatment of division of section 457 
              plan benefits upon divorce.
Sec. 1336. Modification of safe harbor relief for hardship withdrawals 
              from cash or deferred arrangements.

           Part III--Increasing Portability for Participants

Sec. 1341. Rollovers allowed among various types of plans.
Sec. 1342. Rollovers of IRAs into workplace retirement plans.
Sec. 1343. Rollovers of after-tax contributions.
Sec. 1344. Hardship exception to 60-day rule.
Sec. 1345. Treatment of forms of distribution.
Sec. 1346. Rationalization of restrictions on distributions.
Sec. 1347. Purchase of service credit in governmental defined benefit 
              plans.
Sec. 1348. Employers may disregard rollovers for purposes of cash-out 
              amounts.
Sec. 1349. Minimum distribution and inclusion requirements for section 
              457 plans.

        Part IV--Strengthening Pension Security and Enforcement

Sec. 1351. Repeal of 150 percent of current liability funding limit.
Sec. 1352. Maximum contribution deduction rules modified and applied to 
              all defined benefit plans.
Sec. 1353. Excise tax relief for sound pension funding.
Sec. 1354. Excise tax on failure to provide notice by defined benefit 
              plans significantly reducing future benefit accruals.
Sec. 1355. Protection of investment of employee contributions to 401(K) 
              plans.
Sec. 1356. Treatment of multiemployer plans under section 415.

                  Part V--Reducing Regulatory Burdens

Sec. 1361. Modification of timing of plan valuations.
Sec. 1362. ESOP dividends may be reinvested without loss of dividend 
              deduction.
Sec. 1363. Repeal of transition rule relating to certain highly 
              compensated employees.
Sec. 1364. Employees of tax-exempt entities.
Sec. 1365. Clarification of treatment of employer-provided retirement 
              advice.
Sec. 1366. Reporting simplification.
Sec. 1367. Improvement of employee plans compliance resolution system.
Sec. 1368. Modification of exclusion for employer-provided transit 
              passes.
Sec. 1369. Repeal of the multiple use test.
Sec. 1370. Flexibility in nondiscrimination, coverage, and line of 
              business rules.
Sec. 1371. Extension to international organizations of moratorium on 
              application of certain nondiscrimination rules applicable 
              to State and local plans.

                        Part VI--Plan Amendments

Sec. 1381. Provisions relating to plan amendments.

                     Subtitle D--Revenue Provisions

Sec. 1391. Modification of installment method and repeal of installment 
              method for accrual method taxpayers.
Sec. 1392. Modification of estimated tax rules for closely held real 
              estate investment trusts.

                    TITLE XIV--TECHNICAL AMENDMENTS

Sec. 1401. Definitions.
Sec. 1402. Adjustment of dollar amounts.
Sec. 1403. Extension of time.
Sec. 1404. Technical amendments.
Sec. 1405. Penalty for persons who negligently or fraudulently prepare 
              bankruptcy petitions.
Sec. 1406. Limitation on compensation of professional persons.
Sec. 1407. Effect of conversion.
Sec. 1408. Allowance of administrative expenses.
Sec. 1409. Exceptions to discharge.
Sec. 1410. Effect of discharge.
Sec. 1411. Protection against discriminatory treatment.
Sec. 1412. Property of the estate.
Sec. 1413. Preferences.
Sec. 1414. Postpetition transactions.
Sec. 1415. Disposition of property of the estate.
Sec. 1416. General provisions.
Sec. 1417. Abandonment of railroad line.
Sec. 1418. Contents of plan.
Sec. 1419. Discharge under chapter 12.
Sec. 1420. Bankruptcy cases and proceedings.
Sec. 1421. Knowing disregard of bankruptcy law or rule.
Sec. 1422. Transfers made by nonprofit charitable corporations.
Sec. 1423. Protection of valid purchase money security interests.
Sec. 1424. Extensions.
Sec. 1425. Bankruptcy judgeships.
Sec. 1426. Family fishermen.
Sec. 1427. Compensating trustees.
Sec. 1428. Amendment to section 362 of title 11, United States Code.
Sec. 1429. Provision of electronic FTC pamphlet with electronic credit 
              card applications and solicitations.
Sec. 1430. No bankruptcy for insolvent political committees.
Sec. 1431. Federal election law fines and penalties as nondischargeable 
              debt.
Sec. 1432. Prohibition on certain retroactive finance charges.
Sec. 1433. Sense of Senate concerning credit worthiness.
Sec. 1434. Judicial education.
Sec. 1435. United States trustee program filing fee increase.
Sec. 1436. Providing requested tax documents to the court.
Sec. 1437. Definition of family farmer.
Sec. 1438. Encouraging creditworthiness.
Sec. 1439. Property no longer subject to redemption.
Sec. 1440. Availability of toll-free access to information.

      TITLE XV--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS

Sec. 1501. Effective date; application of amendments.

        TITLE XVI--FINANCIAL INSTITUTIONS INSOLVENCY IMPROVEMENT

Sec. 1601. Short title.
Sec. 1602. Treatment of certain agreements by conservators or receivers 
              of insured depository institutions.
Sec. 1603. Authority of the corporation with respect to failed and 
              failing institutions.
Sec. 1604. Amendments relating to transfers of qualified financial 
              contracts.
Sec. 1605. Amendments relating to disaffirmance or repudiation of 
              qualified financial contracts.
Sec. 1606. Clarifying amendment relating to master agreements.
Sec. 1607. Federal Deposit Insurance Corporation Improvement Act of 
              1991.
Sec. 1608. Recordkeeping requirements.
Sec. 1609. Exemptions from contemporaneous execution requirement.
Sec. 1610. SIPC stay.
Sec. 1611. Federal Reserve collateral requirements.
Sec. 1612. Effective date; application of amendments.

      TITLE XVII--METHAMPHETAMINE AND OTHER CONTROLLED SUBSTANCES

Sec. 1701. Short title.

     Subtitle A--Methamphetamine Production, Trafficking, and Abuse

                     Chapter 1--Criminal Penalties

Sec. 1711. Enhanced punishment of amphetamine laboratory operations.

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Sec. 1712. Enhanced punishment of amphetamine or methamphetamine 
              laboratory operators.
Sec. 1713. Mandatory restitution for violations of Controlled 
              Substances Act and Controlled Substances Import and 
              Export Act relating to amphetamine and methamphetamine.
Sec. 1714. Methamphetamine paraphernalia.

                  Chapter 2--Enhanced Law Enforcement

Sec. 1721. Environmental hazards associated with illegal manufacture of 
              amphetamine and methamphetamine.
Sec. 1722. Reduction in retail sales transaction threshold for non-safe 
              harbor products containing pseudoephedrine or 
              phenlypropanolamine.
Sec. 1723. Training for Drug Enforcement Administration and State and 
              local law enforcement personnel relating to clandestine 
              laboratories.
Sec. 1724. Combating methamphetamine and amphetamine in high intensity 
              drug trafficking areas.
Sec. 1725. Combating amphetamine and methamphetamine manufacturing and 
              trafficking.

               Chapter 3--Abuse Prevention and Treatment

Sec. 1731. Expansion of methamphetamine research.
Sec. 1732. Methamphetamine and amphetamine treatment initiative by 
              Center for Substance Abuse Treatment.
Sec. 1733. Expansion of methamphetamine abuse prevention efforts.
Sec. 1734. Study of methamphetamine treatment.

                           Chapter 4--Reports

Sec. 1741. Reports on consumption of methamphetamine and other illicit 
              drugs in rural areas, metropolitan areas, and 
              consolidated metropolitan areas.
Sec. 1742. Report on diversion of ordinary over-the-counter 
              pseudoephedrine and phenylpropanolamine products.

              Subtitle B--Controlled Substances Generally

                      Chapter 1--Criminal Matters

Sec. 1751. Enhanced punishment for trafficking in list I chemicals.
Sec. 1752. Mail order requirements.
Sec. 1753. Increased penalties for distributing drugs to minors.
Sec. 1754. Increased penalty for drug trafficking in or near a school 
              or other protected location.
Sec. 1755. Advertisments for drug paraphernalia and schedule I 
              controlled substances.
Sec. 1756. Theft and transportation of anhydrous ammonia for purposes 
              of illicit production of controlled substances.
Sec. 1757. Criminal prohibition on distribution of certain information 
              relating to the manufacture of controlled substances.

                        Chapter 2--Other Matters

Sec. 1761. Waiver authority for physicians who dispense or prescribe 
              certain narcotic drugs for maintenance treatment or 
              detoxification treatment.

                       Subtitle C--Cocaine Powder

Sec. 1771. Short title.
Sec. 1772. Sentencing for violations involving cocaine powder.

                     Subtitle D--Education Matters

Sec. 1781. Safe schools.
Sec. 1782. Student safety and family school choice.
Sec. 1783. Transfer of revenues.

                       Subtitle E--Miscellaneous

Sec. 1791. Notice; clarification.
Sec. 1792. Domestic terrorism assessment and recovery.
Sec. 1793. Antidrug messages on Federal Government Internet websites.
Sec. 1794. State schools.
Sec. 1795. Student safety and family school choice.
Sec. 1796. Transfer of revenues.
Sec. 1797. Increased penalties for distributing drugs to minors.
Sec. 1798. Increased penalty for drug trafficking in or near a school 
              or other protected location.
Sec. 1799. Severability.

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

Sec. 1801. Short title.
Sec. 1802. Findings and purposes.
Sec. 1803. Unlawful contract and amended contract.
Sec. 1804. Exclusive enforcement.

                 TITLE XIX--CONSUMER CREDIT DISCLOSURE

Sec. 1901. Enhanced disclosures under an open end credit plan.
Sec. 1902. Enhanced disclosure for credit extensions secured by a 
              dwelling.
Sec. 1903. Disclosures related to ``introductory rates''.
Sec. 1904. Internet-based credit card solicitations.
Sec. 1905. Disclosures related to late payment deadlines and penalties.
Sec. 1906. Prohibition on certain actions for failure to incur finance 
              charges.
Sec. 1907. Dual use debit card.
Sec. 1908. Study of bankruptcy impact of credit extended to dependent 
              students.

                    TITLE I--NEEDS-BASED BANKRUPTCY

     SEC. 101. CONVERSION.

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

     SEC. 102. DISMISSAL OR CONVERSION.

       (a) In General.--Section 707 of title 11, United States 
     Code, is amended--
       (1) by striking the section heading and inserting the 
     following:

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

     and
       (2) in subsection (b)--
       (A) by inserting ``(1)'' after ``(b)'';
       (B) in paragraph (1), as redesignated by subparagraph (A) 
     of this paragraph--
       (i) in the first sentence--

       (I) by striking ``but not at the request or suggestion'' 
     and inserting ``, panel trustee or'';
       (II) by inserting ``, or, with the debtor's consent, 
     convert such a case to a case under chapter 11 or 13 of this 
     title,'' after ``consumer debts''; and
       (III) by striking ``substantial abuse'' and inserting 
     ``abuse''; and

       (ii) by striking the next to last sentence; and
       (C) by adding at the end the following:
       ``(2)(A)(i) In considering under paragraph (1) whether the 
     granting of relief would be an abuse of the provisions of 
     this chapter, the court shall presume abuse exists if the 
     debtor's current monthly income reduced by the amounts 
     determined under clauses (ii), (iii), and (iv), and 
     multiplied by 60 is not less than the lesser of--
       ``(I) 25 percent of the debtor's nonpriority unsecured 
     claims in the case; or
       ``(II) $15,000.
       ``(ii)(I) The debtor's monthly expenses shall be the 
     applicable monthly (excluding payments for debts) expenses 
     under standards issued by the Internal Revenue Service for 
     the area in which the debtor resides, as in effect on the 
     date of the entry of the order for relief, for the debtor, 
     the dependents of the debtor, and the spouse of the debtor in 
     a joint case, if the spouse is not otherwise a dependent. In 
     addition, the debtor's monthly expenses shall include the 
     debtor's reasonably necessary expenses incurred to maintain 
     the safety of the debtor and the family of the debtor from 
     family violence as identified under section 309 of the Family 
     Violence Prevention and Services Act (42 U.S.C. 10408), or 
     other applicable Federal law. The expenses included in the 
     debtor's monthly expenses described in the preceding sentence 
     shall be kept confidential by the court.
       ``(II) In addition, the debtor's monthly expenses may 
     include, if applicable, the continuation of actual expenses 
     paid by the debtor that are reasonable and necessary for care 
     and support of an elderly, chronically ill, or disabled 
     household member or member of the debtor's immediate family 
     (including parents, grandparents, and siblings of the debtor, 
     the dependents of the debtor, and the spouse of the debtor in 
     a joint case) who is not a dependent and who is unable to pay 
     for such reasonable and necessary expenses.
       ``(iii) The debtor's average monthly payments on account of 
     secured debts shall be calculated as--
       ``(I) the sum of--
       ``(aa) the total of all amounts scheduled as contractually 
     due to secured creditors in each month of the 60 months 
     following the date of the petition; and
       ``(bb) any additional payments to secured creditors 
     necessary for the debtor, in filing a plan under chapter 13 
     of this title, to maintain possession of the debtor's primary 
     residence, motor vehicle, or other property necessary for the 
     support of the debtor and the debtor's dependents, that 
     serves as collateral for secured debts; divided by
       ``(II) 60.
       ``(iv) The debtor's expenses for payment of all priority 
     claims (including priority child support and alimony claims) 
     shall be calculated as--
       ``(I) the total amount of debts entitled to priority; 
     divided by
       ``(II) 60.
       ``(B)(i) In any proceeding brought under this subsection, 
     the presumption of abuse may be rebutted by demonstrating 
     special circumstances that justify additional expenses or 
     adjustments of current monthly total income. In order to 
     establish special circumstances, the debtor shall be required 
     to--
       ``(I) itemize each additional expense or adjustment of 
     income; and
       ``(II) provide--
       ``(aa) documentation for such expenses; and
       ``(bb) a detailed explanation of the special circumstances 
     that make such expenses necessary and reasonable.
       ``(ii) The debtor, and the attorney for the debtor if the 
     debtor has an attorney, shall attest under oath to the 
     accuracy of any information provided to demonstrate that 
     additional expenses or adjustments to income are required.
       ``(iii) The presumption of abuse may be rebutted if the 
     additional expenses or adjustments to income referred to in 
     clause (i) cause the product of the debtor's current monthly 
     income reduced by the amounts determined under clauses (ii), 
     (iii), and (iv) of subparagraph (A) multiplied by 60 to be 
     less than the lesser of--
       ``(I) 25 percent of the debtor's nonpriority unsecured 
     claims; or
       ``(II) $15,000.
       ``(C)(i) As part of the schedule of current income and 
     expenditures required under section 521, the debtor shall 
     include a statement of the debtor's current monthly income, 
     and the calculations that determine whether a presumption 
     arises under subparagraph (A)(i), that shows how each such 
     amount is calculated.
       ``(ii) The Supreme Court shall promulgate rules under 
     section 2075 of title 28, that prescribe a form for a 
     statement under clause (i) and may provide general rules on 
     the content of the statement.
       ``(3) In considering under paragraph (1) whether the 
     granting of relief would be an

[[Page S396]]

     abuse of the provisions of this chapter in a case in which 
     the presumption in subparagraph (A)(i) of such paragraph does 
     not apply or has been rebutted, the court shall consider--
       ``(A) whether the debtor filed the petition in bad faith; 
     or
       ``(B) the totality of the circumstances (including whether 
     the debtor seeks to reject a personal services contract and 
     the financial need for such rejection as sought by the 
     debtor) of the debtor's financial situation demonstrates 
     abuse.''.
       (b) Definition.--Title 11, United States Code, is amended--
       (1) in section 101, by inserting after paragraph (10) the 
     following:
       ``(10A) `current monthly income'--
       ``(A) means the average monthly income from all sources 
     which the debtor, or in a joint case, the debtor and the 
     debtor's spouse, receive without regard to whether the income 
     is taxable income, derived during the 180-day period 
     preceding the date of determination; and
       ``(B) includes any amount paid by any entity other than the 
     debtor (or, in a joint case, the debtor and the debtor's 
     spouse), on a regular basis to the household expenses of the 
     debtor or the debtor's dependents (and, in a joint case, the 
     debtor's spouse if not otherwise a dependent), but excludes 
     benefits received under the Social Security Act;''; and
       (2) in section 704--
       (A) by inserting ``(a)'' before ``The trustee shall--''; 
     and
       (B) by adding at the end the following:
       ``(b)(1) With respect to an individual debtor under this 
     chapter--
       ``(A) the United States trustee or bankruptcy administrator 
     shall review all materials filed by the debtor and, not later 
     than 10 days before the first meeting of creditors, file with 
     the court a statement as to whether the debtor's case would 
     be presumed to be an abuse under section 707(b); and
       ``(B) not later than 5 days after receiving a statement 
     under subparagraph (A), the court shall provide a copy of the 
     statement to all creditors.
       ``(2) The United States trustee or bankruptcy administrator 
     shall not later than 30 days after receiving a statement 
     filed under paragraph (1) file a motion to dismiss or convert 
     under section 707(b), or file a statement setting forth the 
     reasons the United States trustee or bankruptcy administrator 
     does not believe that such a motion would be appropriate, if 
     based on the filing of such statement with the court, the 
     United States trustee or bankruptcy administrator determines 
     that the debtor's case should be presumed to be an abuse 
     under section 707(b) and the product of the debtor's current 
     monthly income, multiplied by 12 is not less than--
       ``(A) the highest national or applicable State median 
     family income reported for a family of equal or lesser size, 
     whichever is greater; or
       ``(B) in the case of a household of 1 person, the national 
     or applicable State median household income for 1 earner, 
     whichever is greater.
       ``(3) In any case in which a motion to dismiss or convert, 
     or a statement is required to be filed by this subsection, 
     the United States trustee or bankruptcy administrator may 
     decline to file a motion to dismiss or convert pursuant to 
     section 704(b)(2) or if the product of the debtor's current 
     monthly income multiplied by 12--
       ``(A)(i) exceeds 100 percent, but does not exceed 150 
     percent of the national or applicable State median household 
     income reported for a household of equal size, whichever is 
     greater; or
       ``(ii) in the case of a household of 1 person, exceeds 100 
     percent but does not exceed 150 percent of the national or 
     applicable State median household income reported for 1 
     earner, whichever is greater; and
       ``(B) the product of the debtor's current monthly income 
     (reduced by the amounts determined under section 
     707(b)(2)(A)(ii)) (except for the amount calculated under the 
     other necessary expenses standard issued by the Internal 
     Revenue Service and section 707(b)(2)(A) (iii) and (iv)) 
     multiplied by 60 is less than the greater of--
       ``(i) 25 percent of the debtor's nonpriority unsecured 
     claims in the case; or
       ``(ii) $15,000.
       ``(4)(A) The court shall order the counsel for the debtor 
     to reimburse the panel trustee for all reasonable costs in 
     prosecuting a motion brought under section 707(b), including 
     reasonable attorneys' fees, if--
       ``(i) a panel trustee appointed under section 586(a)(1) of 
     title 28 brings a motion for dismissal or conversion under 
     this subsection; and
       ``(ii) the court--
       ``(I) grants that motion; and
       ``(II) finds that the action of the counsel for the debtor 
     in filing under this chapter was frivolous.
       ``(B) If the court finds that the attorney for the debtor 
     violated Rule 9011, at a minimum, the court shall order--
       ``(i) the assessment of an appropriate civil penalty 
     against the counsel for the debtor; and
       ``(ii) the payment of the civil penalty to the panel 
     trustee or the United States trustee.
       ``(C) In the case of a petition referred to in subparagraph 
     (B), the signature of an attorney shall constitute a 
     certificate that the attorney has--
       ``(i) performed a reasonable investigation into the 
     circumstances that gave rise to the petition; and
       ``(ii) determined that the petition--
       ``(I) is well grounded in fact; and
       ``(II) is warranted by existing law or a good faith 
     argument for the extension, modification, or reversal of 
     existing law and does not constitute an abuse under paragraph 
     (1).
       ``(5)(A) Except as provided in subparagraph (B) and subject 
     to paragraph (6), the court may award a debtor all reasonable 
     costs in contesting a motion brought by a party in interest 
     (other than a panel trustee or United States trustee) under 
     this subsection (including reasonable attorneys' fees) if--
       ``(i) the court does not grant the motion; and
       ``(ii) the court finds that--
       ``(I) the position of the party that brought the motion was 
     not substantially justified; or
       ``(II) the party brought the motion solely for the purpose 
     of coercing a debtor into waiving a right guaranteed to the 
     debtor under this title.
       ``(B) A party in interest that has a claim of an aggregate 
     amount less than $1,000 shall not be subject to subparagraph 
     (A).
       ``(6)(A) Only the judge, United States trustee, bankruptcy 
     administrator, or panel trustee may bring a motion under 
     section 707(b), if the current monthly income of the debtor, 
     or in a joint case, the debtor and the debtor's spouse, as of 
     the date of the order for relief, when multiplied by 12, is 
     equal to or less than--
       ``(i) the national or applicable State median family income 
     reported for a family of equal or lesser size, whichever is 
     greater; or
       ``(ii) in the case of a household of 1 person, the national 
     or applicable State median household income last reported by 
     the Bureau of the Census for 1 earner, whichever is greater.
       ``(B) Notwithstanding subparagraph (A), the national or 
     applicable State median family income for a family of more 
     than 4 individuals shall be the national or applicable State 
     median family income last reported by the Bureau of the 
     Census for a family of 4 individuals, whichever is greater, 
     plus $583 for each additional member of that family.''.
       (c) Nonlimitation of Information.--Nothing in this title 
     shall limit the ability of a creditor to provide information 
     to a judge, United States trustee, bankruptcy administrator 
     or panel trustee.
       (d) Dismissal for Certain Crimes.--Section 707 of title 11, 
     United States Code, as amended by subsection (a) of this 
     section, is amended by adding at the end the following:
       ``(c)(1) In this subsection--
       ``(A) the term `crime of violence' has the meaning given 
     that term in section 16 of title 18; and
       ``(B) the term `drug trafficking crime' has the meaning 
     given that term in section 924(c)(2) of title 18.
       ``(2) Except as provided in paragraph (3), after notice and 
     a hearing, the court, on a motion by the victim of a crime of 
     violence or a drug trafficking crime, or at the request of a 
     party in interest, shall dismiss a voluntary case filed by an 
     individual debtor under this chapter if that individual was 
     convicted of that crime.
       ``(3) The court may not dismiss a case under paragraph (2) 
     if the debtor establishes by a preponderance of the evidence 
     that the filing of a case under this chapter is necessary to 
     satisfy a claim for a domestic support obligation.''.
       (e) Clerical Amendment.--The table of sections for chapter 
     7 of title 11, United States Code, is amended by striking the 
     item relating to section 707 and inserting the following:

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

     SEC. 103. FINDINGS AND STUDY.

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

     SEC. 104. NOTICE OF ALTERNATIVES.

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

     SEC. 105. DEBTOR FINANCIAL MANAGEMENT TRAINING TEST PROGRAM.

       (a) Development of Financial Management and Training 
     Curriculum and Materials.--The Director of the Executive 
     Office for United States Trustees (in this section referred 
     to as the ``Director'') shall--
       (1) consult with a wide range of individuals who are 
     experts in the field of debtor education, including trustees 
     who are appointed under chapter 13 of title 11, United States 
     Code, and

[[Page S397]]

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

     SEC. 106. CREDIT COUNSELING.

       (a) Who May Be a Debtor.--Section 109 of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(h)(1) Subject to paragraphs (2) and (3), and 
     notwithstanding any other provision of this section, an 
     individual may not be a debtor under this title unless that 
     individual has, during the 180-day period preceding the date 
     of filing of the petition of that individual, received from 
     an approved nonprofit budget and credit counseling agency 
     described in section 111(a) an individual or group briefing 
     (including a briefing conducted by telephone or on the 
     Internet) that outlined the opportunities for available 
     credit counseling and assisted that individual in performing 
     a related budget analysis.
       ``(2)(A) Paragraph (1) shall not apply with respect to a 
     debtor who resides in a district for which the United States 
     trustee or bankruptcy administrator of the bankruptcy court 
     of that district determines that the approved nonprofit 
     budget and credit counseling agency for that district is not 
     reasonably able to provide adequate services to the 
     additional individuals who would otherwise seek credit 
     counseling from that agency by reason of the requirements of 
     paragraph (1).
       ``(B) Each United States trustee or bankruptcy 
     administrator that makes a determination described in 
     subparagraph (A) shall review that determination not later 
     than 1 year after the date of that determination, and not 
     less frequently than every year thereafter. Notwithstanding 
     the preceding sentence, a nonprofit budget and credit 
     counseling service may be disapproved by the United States 
     trustee or bankruptcy administrator at any time.
       ``(3)(A) Subject to subparagraph (B), the requirements of 
     paragraph (1) shall not apply with respect to a debtor who 
     submits to the court a certification that--
       ``(i) describes exigent circumstances that merit a waiver 
     of the requirements of paragraph (1);
       ``(ii) states that the debtor requested credit counseling 
     services from an approved nonprofit budget and credit 
     counseling agency, but was unable to obtain the services 
     referred to in paragraph (1) during the 5-day period 
     beginning on the date on which the debtor made that request; 
     and
       ``(iii) is satisfactory to the court.
       ``(B) With respect to a debtor, an exemption under 
     subparagraph (A) shall cease to apply to that debtor on the 
     date on which the debtor meets the requirements of paragraph 
     (1), but in no case may the exemption apply to that debtor 
     after the date that is 30 days after the debtor files a 
     petition, except that the court, for cause, may order an 
     additional 15 days.''.
       (b) Chapter 7 Discharge.--Section 727(a) of title 11, 
     United States Code, is amended--
       (1) in paragraph (9), by striking ``or'' at the end;
       (2) in paragraph (10), by striking the period and inserting 
     ``; or''; and
       (3) by adding at the end the following:
       ``(11) after the filing of the petition, the debtor failed 
     to complete an instructional course concerning personal 
     financial management described in section 111.''.
       (c) Chapter 13 Discharge.--Section 1328 of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(g) The court shall not grant a discharge under this 
     section to a debtor, unless after filing a petition the 
     debtor has completed an instructional course concerning 
     personal financial management described in section 111.
       ``(h) Subsection (g) shall not apply with respect to a 
     debtor who resides in a district for which the United States 
     trustee or bankruptcy administrator of the bankruptcy court 
     of that district determines that the approved instructional 
     courses are not adequate to service the additional 
     individuals who would be required to complete the 
     instructional course by reason of the requirements of this 
     section.
       ``(i) Each United States trustee or bankruptcy 
     administrator that makes a determination described in 
     subsection (h) shall review that determination not later than 
     1 year after the date of that determination, and not less 
     frequently than every year thereafter.''.
       (d) Debtor's Duties.--Section 521 of title 11, United 
     States Code, is amended--
       (1) by inserting ``(a)'' before ``The debtor shall--''; and
       (2) by adding at the end the following:
       ``(b) In addition to the requirements under subsection (a), 
     an individual debtor shall file with the court--
       ``(1) a certificate from the approved nonprofit budget and 
     credit counseling agency that provided the debtor services 
     under section 109(h); and
       ``(2) a copy of the debt repayment plan, if any, developed 
     under section 109(h) through the approved nonprofit budget 
     and credit counseling agency referred to in paragraph (1).''.
       (e) General Provisions.--
       (1) In general.--Chapter 1 of title 11, United States Code, 
     is amended by adding at the end the following:

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

       ``(a) The clerk of each district shall maintain a list of 
     nonprofit budget and credit counseling ageancies that provide 
     1 or more programs described in section 109(h) and a list of 
     instructional courses concerning personal financial 
     management that have been approved by--
       ``(1) the United States trustee; or
       ``(2) the bankruptcy administrator for the district.
       ``(b) For inclusion on the approved list under subsection 
     (a), the United States trustee or bankruptcy administrator 
     shall require the credit counseling service, at a minimum--
       ``(1) to be a nonprofit budget and credit counseling 
     agency, the majority of the board of directors of which--
       ``(A) are not employed by the agency; and
       ``(B) will not directly or indirectly benefit financially 
     from the outcome of a credit counseling session;
       ``(2) if a fee is charged for counseling services, to 
     charge a reasonable fee, and to provide services without 
     regard to ability to pay the fee;
       ``(3) to provide for safekeeping and payment of client 
     funds, including an annual audit of the trust accounts and 
     appropriate employee bonding;
       ``(4) to provide full disclosures to clients, including 
     funding sources, counselor qualifications, and possible 
     impact on credit reports;
       ``(5) to provide adequate counseling with respect to client 
     credit problems that includes an analysis of their current 
     situation, what brought them to that financial status, and 
     how they can develop a plan to handle the problem without 
     incurring negative amortization of their debts; and
       ``(6) to provide trained counselors who receive no 
     commissions or bonuses based on the counseling session 
     outcome.
       ``(c)(1) No credit counseling service may provide to a 
     credit reporting agency information concerning whether an 
     individual debtor has received or sought instruction 
     concerning personal financial management from the credit 
     counseling service.
       ``(2) A credit counseling service that willfully or 
     negligently fails to comply with any requirement under this 
     title with respect to a debtor shall be liable for damages in 
     an amount equal to the sum of--
       ``(A) any actual damages sustained by the debtor as a 
     result of the violation; and
       ``(B) any court costs or reasonable attorneys' fees (as 
     determined by the court) incurred in an action to recover 
     those damages.''.
       (2) Clerical amendment.--The table of sections for chapter 
     1 of title 11, United States Code, is amended by adding at 
     the end the following:

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

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

                 TITLE II--ENHANCED CONSUMER PROTECTION

          Subtitle A--Penalties for Abusive Creditor Practices

     SEC. 201. PROMOTION OF ALTERNATIVE DISPUTE RESOLUTION.

       (a) Reduction of Claim.--Section 502 of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(k)(1) The court, on the motion of the debtor and after a 
     hearing, may reduce a claim filed under this section based in 
     whole on unsecured consumer debts by not more than 20 percent 
     of the claim, if--
       ``(A) the claim was filed by a creditor who unreasonably 
     refused to negotiate a reasonable alternative repayment 
     schedule proposed by an approved credit counseling agency 
     acting on behalf of the debtor;
       ``(B) the offer of the debtor under subparagraph (A)--
       ``(i) was made at least 60 days before the filing of the 
     petition; and
       ``(ii) provided for payment of at least 60 percent of the 
     amount of the debt over a period not

[[Page S398]]

     to exceed the repayment period of the loan, or a reasonable 
     extension thereof; and
       ``(C) no part of the debt under the alternative repayment 
     schedule is nondischargeable.
       ``(2) The debtor shall have the burden of proving, by clear 
     and convincing evidence, that--
       ``(A) the creditor unreasonably refused to consider the 
     debtor's proposal; and
       ``(B) the proposed alternative repayment schedule was made 
     in the 60-day period specified in paragraph (1)(B)(i).''.
       (b) Limitation on Avoidability.--Section 547 of title 11, 
     United States Code, is amended by adding at the end the 
     following:
       ``(h) The trustee may not avoid a transfer if such transfer 
     was made as a part of an alternative repayment plan between 
     the debtor and any creditor of the debtor created by an 
     approved credit counseling agency.''.

     SEC. 202. EFFECT OF DISCHARGE.

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

     SEC. 203. DISCOURAGING ABUSE OF REAFFIRMATION PRACTICES.

       (a) In General.--Section 524 of title 11, United States 
     Code, as amended by section 202 of this Act, is amended--
       (1) in subsection (c) by striking paragraph (2) and 
     inserting the following:
       ``(2) the debtor received the disclosures described in 
     subsection (i) at or before the time the debtor signed the 
     agreement.'';
       (2) by inserting at the end of the section the following:
       ``(i)(1) The disclosures required under subsection (c) 
     paragraph (2) of this section shall consist of the disclosure 
     statement described in paragraph (3), completed as required 
     in that paragraph, together with the agreement, statement, 
     declaration, motion and order described, respectively, in 
     paragraphs (4) through (8) of this subsection, and shall be 
     the only disclosures required in connection with the 
     reaffirmation.
       ``(2) Disclosures made under this paragraph shall be made 
     clearly and conspicuously and in writing. The terms `Amount 
     Reaffirmed' and `Annual Percentage Rate' shall be disclosed 
     more conspicuously than other terms, data or information 
     provided in connection with this disclosure, except that the 
     phrases `Before agreeing to reaffirm a debt, review these 
     important disclosures' and `Summary of Reaffirmation 
     Agreement' may be equally conspicuous. Disclosures may be 
     made in a different order and may use terminology different 
     from that set forth in paragraphs (2) through (8), except 
     that the terms `Amount Reaffirmed' and `Annual Percentage 
     Rate' must be used where indicated.
       ``(3) The disclosure statement required under this 
     paragraph shall consist of the following:
       ``(A) The statement: `Part A: Before agreeing to reaffirm a 
     debt, review these important disclosures:';
       ``(B) Under the heading `Summary of Reaffirmation 
     Agreement', the statement: `This Summary is made pursuant to 
     the requirements of the Bankruptcy Code';
       ``(C) The `Amount Reaffirmed', using that term, which shall 
     be--
       ``(i) the total amount which the debtor agrees to reaffirm, 
     and
       ``(ii) the total of any other fees or cost accrued as of 
     the date of the disclosure statement.
       ``(D) In conjunction with the disclosure of the `Amount 
     Reaffirmed', the statements--
       ``(i) `The amount of debt you have agreed to reaffirm'; and
       ``(ii) `Your credit agreement may obligate you to pay 
     additional amounts which may come due after the date of this 
     disclosure. Consult your credit agreement.'.
       ``(E) The `Annual Percentage Rate', using that term, which 
     shall be disclosed as--
       ``(i) if, at the time the petition is filed, the debt is 
     open end credit as defined pursuant to the Truth in Lending 
     Act, title 15, United States Code, section 1601 et. seq., 
     then--
       ``(I) the annual percentage rate determined pursuant to 
     title 15, United States Code, section 1637(b) (5) and (6), as 
     applicable, as disclosed to the debtor in the most recent 
     periodic statement prior to the agreement or, if no such 
     periodic statement has been provided the debtor during the 
     prior six months, the annual percentage rate as it would have 
     been so disclosed at the time the disclosure statement is 
     given the debtor, or to the extent this annual percentage 
     rate is not readily available or not applicable, then
       ``(II) the simple interest rate applicable to the amount 
     reaffirmed as of the date the disclosure statement is given 
     to the debtor, or if different simple interest rates apply to 
     different balances, the simple interest rate applicable to 
     each such balance, identifying the amount of each such 
     balance included in the amount reaffirmed, or
       ``(III) if the entity making the disclosure elects, to 
     disclose the annual percentage rate under (I) and the simple 
     interest rate under (II);
       ``(ii) if, at the time the petition is filed, the debt is 
     closed end credit as defined pursuant to the Truth in Lending 
     Act, title 15, United States Code, section 1601 et seq., 
     then--
       ``(I) the annual percentage rate pursuant to title 15, 
     United States Code, section 1638(a)(4) as disclosed to the 
     debtor in the most recent disclosure statement given the 
     debtor prior to the reaffirmation agreement with respect to 
     the debt, or, if no such disclosure statement was provided 
     the debtor, the annual percentage rate as it would have been 
     so disclosed at the time the disclosure statement is given 
     the debtor, or to the extent this annual percentage rate is 
     not readily available or not applicable, then
       ``(II) the simple interest rate applicable to the amount 
     reaffirmed as of the date the disclosure statement is given 
     the debtor, or if different simple interest rates apply to 
     different balances, the simple interest rate applicable to 
     each such balance, identifying the amount of such balance 
     included in the amount reaffirmed, or
       ``(III) if the entity making the disclosure elects, to 
     disclose the annual percentage rate under (I) and the simple 
     interest rate under (II).
       ``(F) If the underlying debt transaction was disclosed as a 
     variable rate transaction on the most recent disclosure given 
     pursuant to the Truth in Lending Act, title 15, United States 
     Code, section 1601 et seq., by stating `The interest rate on 
     your loan may be a variable interest rate which changes from 
     time to time, so that the annual percentage rate disclosed 
     here may be higher or lower.'.
       ``(G) If the debt is secured by a security interest which 
     has not been waived in whole or in part or determined to be 
     void by a final order of the court at the time of the 
     disclosure, by disclosing that a security interest or lien in 
     goods or property is asserted over some or all of the 
     obligations you are reaffirming and listing the items and 
     their original purchase price that are subject to the 
     asserted security interest, or if not a purchase-money 
     security interest then listing by items or types and the 
     original amount of the loan.
       ``(H) At the election of the creditor, a statement of the 
     repayment schedule using one or a combination of the 
     following--
       ``(i) by making the statement: `Your first payment in the 
     amount $___ is due on ___ but the future payment amount may 
     be different. Consult your reaffirmation or credit agreement, 
     as applicable.', and stating the amount of the first payment 
     and the due date of that payment in the places provided;
       ``(ii) by making the statement: `Your payment schedule will 
     be:', and describing the repayment schedule with the number, 
     amount and due dates or period of payments scheduled to repay 
     the obligations reaffirmed to the extent then known by the 
     disclosing party; or
       ``(iii) by describing the debtor's repayment obligations 
     with reasonable specificity to the extent then known by the 
     disclosing party.
       ``(I) The following statement: `Note: When this disclosure 
     talks about what a creditor ``may'' do, it does not use the 
     word ``may'' to give the creditor specific permission. The 
     word ``may'' is used to tell you what might occur if the law 
     permits the creditor to take the action. If you have 
     questions about your reaffirmation or what the law requires, 
     talk to the attorney who helped you negotiate this agreement. 
     If you don't have an attorney helping you, the judge will 
     explain the effect of your reaffirmation when the 
     reaffirmation hearing is held.'.
       ``(J) The following additional statements:
       `` `Reaffirming a debt is a serious financial decision. The 
     law requires you to take certain steps to make sure the 
     decision is in your best interest. If these steps are not 
     completed, the reaffirmation agreement is not effective, even 
     though you have signed it.
       `` `1. Read the disclosures in this Part A carefully. 
     Consider the decision to reaffirm carefully. Then, if you 
     want to reaffirm, sign the reaffirmation agreement in Part B 
     (or you may use a separate agreement you and your creditor 
     agree on).
       `` `2. Complete and sign Part D and be sure you can afford 
     to make the payments you are agreeing to make and have 
     received a copy of the disclosure statement and a completed 
     and signed reaffirmation agreement.
       `` `3. If you were represented by an attorney during the 
     negotiation of the reaffirmation agreement, the attorney must 
     have signed the certification in Part C.
       `` `4. If you were not represented by an attorney during 
     the negotiation of the reaffirmation agreement, you must have 
     completed and signed Part E.
       `` `5. The original of this disclosure must be filed with 
     the court by you or your creditor. If a separate 
     reaffirmation agreement (other than the one in Part B) has 
     been signed, it must be attached.
       `` `6. If you were represented by an attorney during the 
     negotiation of the reaffirmation agreement, your 
     reaffirmation agreement becomes effective upon filing with 
     the court unless the reaffirmation is presumed to be an undue 
     hardship as explained in Part D.
       `` `7. If you were not represented by an attorney during 
     the negotiation of the reaffirmation agreement, it will not 
     be effective unless the court approves it. The court will 
     notify you of the hearing on your reaffirmation agreement. 
     You must attend this hearing in bankruptcy court where the 
     judge will review your agreement. The bankruptcy court must 
     approve the agreement as consistent with your best interests, 
     except that no court approval is required if the agreement is 
     for a consumer debt secured by a mortgage, deed of trust, 
     security deed or other lien on your real property, like your 
     home.
       `` `Your right to rescind a reaffirmation. You may rescind 
     (cancel) your reaffirmation at any time before the bankruptcy 
     court enters a discharge order or within 60 days after the 
     agreement is filed with the court, whichever is longer. To 
     rescind or cancel, you must notify the creditor that the 
     agreement is canceled.
       `` `What are your obligations if you reaffirm the debt? A 
     reaffirmed debt remains your personal legal obligation. It is 
     not discharged in your bankruptcy. That means that if you 
     default on your reaffirmed debt after your bankruptcy is 
     over, your creditor may be able to take your property or your 
     wages. Otherwise, your obligations will be determined by the 
     reaffirmation agreement which may have changed the terms of 
     the original agreement. For example, if you are reaffirming 
     an open end credit agreement, the creditor may be permitted 
     by that agreement and/or applicable law to change the

[[Page S399]]

     terms of the agreement in the future under certain 
     conditions.
       `` `Are you required to enter into a reaffirmation 
     agreement by any law? No, you are not required to reaffirm a 
     debt by any law. Only agree to reaffirm a debt if it is in 
     your best interest. Be sure you can afford the payments you 
     agree to make.
       `` `What if your creditor has a security interest or lien? 
     Your bankruptcy discharge does not eliminate any lien on your 
     property. A ``lien'' is often referred to as a security 
     interest, deed of trust, mortgage or security deed. Even if 
     you do not reaffirm and your personal liability on the debt 
     is discharged, because of the lien your creditor may still 
     have the right to take the security property if you do not 
     pay the debt or default on it. If the lien is on an item of 
     personal property that is exempt under your State's law or 
     that the trustee has abandoned, you may be able to redeem the 
     item rather than reaffirm the debt. To redeem, you make a 
     single payment to the creditor equal to the current value of 
     the security property, as agreed by the parties or determined 
     by the court.'.
       ``(4) The form of reaffirmation agreement required under 
     this paragraph shall consist of the following:
       `` `Part B: Reaffirmation Agreement. I/we agree to reaffirm 
     the obligations arising under the credit agreement described 
     below.
       `` `Brief description of credit agreement:
       `` `Description of any changes to the credit agreement made 
     as part of this reaffirmation agreement:
       `` `Signature:          Date:
       `` `Borrower:
       `` `Co-borrower, if also reaffirming:
       `` `Accepted by creditor:
       `` `Date of creditor acceptance:'.
       ``(5)(A) The declaration shall consist of the following:
       `` `Part C: Certification by Debtor's Attorney (If Any).
       `` `I hereby certify that (1) this agreement represents a 
     fully informed and voluntary agreement by the debtor(s); (2) 
     this agreement does not impose an undue hardship on the 
     debtor or any dependent of the debtor; and (3) I have fully 
     advised the debtor of the legal effect and consequences of 
     this agreement and any default under this agreement.
       `` `Signature of Debtor's Attorney:    Date:'.
       ``(B) In the case of reaffirmations in which a presumption 
     of undue hardship has been established, the certification 
     shall state that in the opinion of the attorney, the debtor 
     is able to make the payment.
       ``(6) The statement in support of reaffirmation agreement, 
     which the debtor shall sign and date prior to filing with the 
     court, shall consist of the following:
       `` `Part D: Debtor's Statement in Support of Reaffirmation 
     Agreement.
       `` `1. I believe this agreement will not impose an undue 
     hardship on my dependents or me. I can afford to make the 
     payments on the reaffirmed debt because my monthly income 
     (take home pay plus any other income received) is $___, and 
     my actual current monthly expenses including monthly payments 
     on post-bankruptcy debt and other reaffirmation agreements 
     total $___, leaving $___ to make the required payments on 
     this reaffirmed debt. I understand that if my income less my 
     monthly expenses does not leave enough to make the payments, 
     this reaffirmation agreement is presumed to be an undue 
     hardship on me and must be reviewed by the court. However, 
     this presumption may be overcome if I explain to the 
     satisfaction of the court how I can afford to make the 
     payments here: ___.
       `` `2. I received a copy of the Reaffirmation Disclosure 
     Statement in Part A and a completed and signed reaffirmation 
     agreement.'.
       ``(7) The motion, which may be used if approval of the 
     agreement by the court is required in order for it to be 
     effective and shall be signed and dated by the moving party, 
     shall consist of the following:
       `` `Part E: Motion for Court Approval (To be completed only 
     where debtor is not represented by an attorney.). I (we), the 
     debtor, affirm the following to be true and correct:
       `` `I am not represented by an attorney in connection with 
     this reaffirmation agreement.
       `` `I believe this agreement is in my best interest based 
     on the income and expenses I have disclosed in my Statement 
     in Support of this reaffirmation agreement above, and because 
     (provide any additional relevant reasons the court should 
     consider):
       `` `Therefore, I ask the court for an order approving this 
     reaffirmation agreement.'.
       ``(8) The court order, which may be used to approve a 
     reaffirmation, shall consist of the following:
       `` `Court Order: The court grants the debtor's motion and 
     approves the reaffirmation agreement described above.'.
       ``(j) Notwithstanding any other provision of this title:
       ``(1) A creditor may accept payments from a debtor before 
     and after the filing of a reaffirmation agreement with the 
     court.
       ``(2) A creditor may accept payments from a debtor under a 
     reaffirmation agreement which the creditor believes in good 
     faith to be effective.
       ``(3) The requirements of subsections (c)(2) and (i) shall 
     be satisfied if disclosures required under those subsections 
     are given in good faith.
       ``(k) Until 60 days after a reaffirmation agreement is 
     filed with the court (or such additional period as the court, 
     after notice and hearing and for cause, orders before the 
     expiration of such period), it shall be presumed that the 
     reaffirmation agreement is an undue hardship on the debtor if 
     the debtor's monthly income less the debtor's monthly 
     expenses as shown on the debtor's completed and signed 
     statement in support of the reaffirmation agreement required 
     under subsection (i)(6) of this section is less than the 
     scheduled payments on the reaffirmed debt. This presumption 
     must be reviewed by the court. The presumption may be 
     rebutted in writing by the debtor if the statement includes 
     an explanation which identifies additional sources of funds 
     to make the payments as agreed upon under the terms of the 
     reaffirmation agreement. If the presumption is not rebutted 
     to the satisfaction of the court, the court may disapprove 
     the agreement. However, no agreement shall be disapproved 
     without notice and hearing to the debtor and creditor and 
     such hearing must be concluded before the entry of the 
     debtor's discharge.''.
       (b) Law Enforcement.--
       (1) In general.--Chapter 9 of title 18, United States Code, 
     is amended by adding at the end the following:

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

       ``(a) In General.--The Attorney General of the United 
     States shall designate the individuals described in 
     subsection (b) to have primary responsibility in carrying out 
     enforcement activities in addressing violations of section 
     152 or 157 relating to abusive reaffirmations of debt. In 
     addition to addressing the violations referred to in the 
     preceding sentence, the individuals described under 
     subsection (b) shall address violations of section 152 or 157 
     relating to materially fraudulent statements in bankruptcy 
     schedules that are intentionally false or intentionally 
     misleading.
       ``(b) United States District Attorneys and Agents of the 
     Federal Bureau of Investigation--The individuals referred to 
     in subsection (a) are--
       ``(1) a United States attorney for each judicial district 
     of the United States; and
       ``(2) an agent of the Federal Bureau of Investigation 
     (within the meaning of section 3107) for each field office of 
     the Federal Bureau of Investigation.
       ``(c) Bankruptcy Investigations.--Each United States 
     attorney designated under this section shall have primary 
     responsibility for carrying out the duties of a United States 
     attorney under section 3057.
       ``(d) Bankruptcy Procedures.--The bankruptcy courts shall 
     establish procedures for referring any case which may contain 
     a materially fraudulent statement in a bankruptcy schedule to 
     the individuals designated under this section.''.
       (2) Clerical amendment.--The analysis for chapter 9 of 
     title 18, United States Code, is amended by adding at the end 
     the following:

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

                   Subtitle B--Priority Child Support

     SEC. 211. DEFINITION OF DOMESTIC SUPPORT OBLIGATION.

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

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

       Section 507(a) of title 11, United States Code, is 
     amended--
       (1) by striking paragraph (7);
       (2) by redesignating paragraphs (1) through (6) as 
     paragraphs (2) through (7), respectively;
       (3) in paragraph (2), as redesignated, by striking 
     ``First'' and inserting ``Second'';
       (4) in paragraph (3), as redesignated, by striking 
     ``Second'' and inserting ``Third'';
       (5) in paragraph (4), as redesignated, by striking 
     ``Third'' and inserting ``Fourth'';
       (6) in paragraph (5), as redesignated, by striking 
     ``Fourth'' and inserting ``Fifth'';
       (7) in paragraph (6), as redesignated, by striking 
     ``Fifth'' and inserting ``Sixth'';
       (8) in paragraph (7), as redesignated, by striking 
     ``Sixth'' and inserting ``Seventh''; and
       (9) by inserting before paragraph (2), as redesignated, the 
     following:
       ``(1) First:
       ``(A) Allowed unsecured claims for domestic support 
     obligations that, as of the date of the filing of the 
     petition, are owed to or recoverable by a spouse, former 
     spouse, or child of the debtor, or the parent, legal 
     guardian, or responsible

[[Page S400]]

     relative of such child, without regard to whether the claim 
     is filed by such person or is filed by a governmental unit on 
     behalf of that person, on the condition that funds received 
     under this paragraph by a governmental unit under this title 
     after the date of filing of the petition shall be applied and 
     distributed in accordance with applicable nonbankruptcy law.
       ``(B) Subject to claims under subparagraph (A), allowed 
     unsecured claims for domestic support obligations that, as of 
     the date the petition was filed are assigned by a spouse, 
     former spouse, child of the debtor, or such child's parent, 
     legal guardian, or responsible relative to a governmental 
     unit (unless such obligation is assigned voluntarily by the 
     spouse, former spouse, child, parent, legal guardian, or 
     responsible relative of the child for the purpose of 
     collecting the debt) or are owed directly to or recoverable 
     by a government unit under applicable nonbankruptcy law, on 
     the condition that funds received under this paragraph by a 
     governmental unit under this title after the date of filing 
     of the petition be applied and distributed in accordance with 
     applicable nonbankruptcy law.''.

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

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

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

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

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

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

     SEC. 216. CONTINUED LIABILITY OF PROPERTY.

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

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

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

     SEC. 218. DISPOSABLE INCOME DEFINED.

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

     SEC. 219. COLLECTION OF CHILD SUPPORT.

       (a) Duties of Trustee Under Chapter 7.--Section 704 of 
     title 11, United States Code, as amended by section 102(b) of 
     this Act, is amended--

[[Page S401]]

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

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

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

[[Page S402]]

                 Subtitle C--Other Consumer Protections

     SEC. 221. AMENDMENTS TO DISCOURAGE ABUSIVE BANKRUPTCY 
                   FILINGS.

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

       (I) by striking ``or has not paid a penalty'' and inserting 
     ``has not paid a penalty''; and
       (II) by inserting ``or failed to disgorge all fees ordered 
     by the court'' after ``a penalty imposed under this 
     section,'';

       (B) by redesignating paragraph (3) as paragraph (4); and
       (C) by inserting after paragraph (2) the following:
       ``(3) The court, as part of its contempt power, may enjoin 
     a bankruptcy petition preparer that has failed to comply with 
     a previous order issued under this section. The injunction 
     under this paragraph may be issued upon motion of the court, 
     the trustee, or the United States trustee.''; and
       (11) by adding at the end the following:
       ``(l)(1) A bankruptcy petition preparer who fails to comply 
     with any provision of subsection (b), (c), (d), (e), (f), 
     (g), or (h) may be fined not more than $500 for each such 
     failure.
       ``(2) The court shall triple the amount of a fine assessed 
     under paragraph (1) in any case in which the court finds that 
     a bankruptcy petition preparer--
       ``(A) advised the debtor to exclude assets or income that 
     should have been included on applicable schedules;
       ``(B) advised the debtor to use a false Social Security 
     account number;
       ``(C) failed to inform the debtor that the debtor was 
     filing for relief under this title; or
       ``(D) prepared a document for filing in a manner that 
     failed to disclose the identity of the preparer.
       ``(3) The debtor, the trustee, a creditor, or the United 
     States trustee may file a motion for an order imposing a fine 
     on the bankruptcy petition preparer for each violation of 
     this section.
       ``(4) All fines imposed under this section shall be paid to 
     the United States trustee, who shall deposit an amount equal 
     to such fines in a special account of the United States 
     Trustee System Fund referred to in section 586(e)(2) of title 
     28. Amounts deposited under this paragraph shall be available 
     to fund the enforcement of this section on a national 
     basis.''.

     SEC. 222. SENSE OF CONGRESS.

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

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

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

     SEC. 224. PROTECTION OF RETIREMENT SAVINGS IN BANKRUPTCY.

       (a) In General.--Section 522 of title 11, United States 
     Code, as amended by section 215 of this Act, is amended--
       (1) in subsection (b)--
       (A) in paragraph (2)--
       (i) by striking ``(2)(A) any property'' and inserting:
       ``(3) Property listed in this paragraph is--
       ``(A) any property'';
       (ii) in subparagraph (A), by striking ``and'' at the end;
       (iii) in subparagraph (B), by striking the period at the 
     end and inserting ``; and''; and
       (iv) by adding at the end the following:
       ``(C) retirement funds to the extent that those funds are 
     in a fund or account that is exempt from taxation under 
     section 401, 403, 408, 408A, 414, 457, or 501(a) of the 
     Internal Revenue Code of 1986.'';
       (B) by striking paragraph (1) and inserting:
       ``(2) Property listed in this paragraph is property that is 
     specified under subsection (d), unless the State law that is 
     applicable to the debtor under paragraph (3)(A) specifically 
     does not so authorize.'';
       (C) in the matter preceding paragraph (2)--

[[Page S403]]

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

     SEC. 225. PROTECTION OF EDUCATION SAVINGS.

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

                TITLE III--DISCOURAGING BANKRUPTCY ABUSE

     SEC. 301. REINFORCEMENT OF THE FRESH START.

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

     SEC. 302. DISCOURAGING BAD FAITH REPEAT FILINGS.

       Section 362(c) of title 11, United States Code, is 
     amended--
       (1) in paragraph (1), by striking ``and'' at the end;
       (2) in paragraph (2), by striking the period at the end and 
     inserting a semicolon; and
       (3) by adding at the end the following:
       ``(3) if a single or joint case is filed by or against an 
     individual debtor under chapter 7, 11, or 13, and if a single 
     or joint case of the debtor was pending within the preceding 
     1-year period but was dismissed, other than a case refiled 
     under a chapter other than chapter 7 after dismissal under 
     section 707(b)--
       ``(A) the stay under subsection (a) with respect to any 
     action taken with respect to a debt or property securing such 
     debt or with respect to any lease will terminate with respect 
     to the debtor on the 30th day after the filing of the later 
     case;
       ``(B) upon motion by a party in interest for continuation 
     of the automatic stay and upon notice and a hearing, the 
     court may extend the stay in particular cases as to any or 
     all creditors (subject to such conditions or limitations as 
     the court may then impose) after notice and a hearing 
     completed before the expiration of the 30-day period only if 
     the party in interest demonstrates that the filing of the 
     later case is in good faith as to the creditors to be stayed; 
     and

[[Page S404]]

       ``(C) for purposes of subparagraph (B), a case is 
     presumptively filed not in good faith (but such presumption 
     may be rebutted by clear and convincing evidence to the 
     contrary)--
       ``(i) as to all creditors, if--

       ``(I) more than 1 previous case under any of chapter 7, 11, 
     or 13 in which the individual was a debtor was pending within 
     the preceding 1-year period;
       ``(II) a previous case under any of chapter 7, 11, or 13 in 
     which the individual was a debtor was dismissed within such 
     1-year period, after the debtor failed to--

       ``(aa) file or amend the petition or other documents as 
     required by this title or the court without substantial 
     excuse (but mere inadvertence or negligence shall not be a 
     substantial excuse unless the dismissal was caused by the 
     negligence of the debtor's attorney);
       ``(bb) provide adequate protection as ordered by the court; 
     or
       ``(cc) perform the terms of a plan confirmed by the court; 
     or

       ``(III) there has not been a substantial change in the 
     financial or personal affairs of the debtor since the 
     dismissal of the next most previous case under chapter 7, 11, 
     or 13 or any other reason to conclude that the later case 
     will be concluded--

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

     SEC. 303. CURBING ABUSIVE FILINGS.

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

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

     SEC. 304. DEBTOR RETENTION OF PERSONAL PROPERTY SECURITY.

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

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

       Title 11, United States Code, is amended--
       (1) in section 362--
       (A) in subsection (c), by striking ``(e), and (f)'' and 
     inserting ``(e), (f), and (h)''; and
       (B) by redesignating subsection (h), as amended by section 
     227 of this Act, as subsection (j) and by inserting after 
     subsection (g) the following:
       ``(h)(1) Subject to paragraph (2), in an individual case 
     under chapter 7, 11, or 13 the stay provided by subsection 
     (a) is terminated with respect to property of the estate 
     securing in whole or in part a claim, or subject to an 
     unexpired lease, if the debtor fails within the applicable 
     period of time set by section 521(a)(2) to--
       ``(A) file timely any statement of intention required under 
     section 521(a)(2) with respect to that property or to 
     indicate therein that the debtor--
       ``(i) will either surrender the property or retain the 
     property; and
       ``(ii) if retaining the property, will, as applicable--
       ``(I) redeem the property under section 722;
       ``(II) reaffirm the debt the property secures under section 
     524(c); or
       ``(III) assume the unexpired lease under section 365(p) if 
     the trustee does not do so; or
       ``(B) take timely the action specified in that statement of 
     intention, as the statement may be amended before expiration 
     of the period for taking action, unless the statement of 
     intention specifies reaffirmation and the creditor refuses to 
     reaffirm on the original contract terms.
       ``(2) Paragraph (1) shall not apply if the court determines 
     on the motion of the trustee, and after notice and a hearing, 
     that such property is of consequential value or benefit to 
     the estate.''; and
       (2) in section 521, as amended by section 304 of this Act--
       (A) in subsection (a)(2), as redesignated by section 106(d) 
     of this Act--
       (i) by striking ``consumer'';
       (ii) in subparagraph (B)--

       (I) by striking ``forty-five days after the filing of a 
     notice of intent under this section'' and inserting ``30 days 
     after the first date set for the meeting of creditors under 
     section 341(a)''; and

[[Page S405]]

       (II) by striking ``forty-five day period'' and inserting 
     ``30-day period''; and

       (iii) in subparagraph (C), by inserting ``except as 
     provided in section 362(h)'' before the semicolon; and
       (B) by adding at the end the following:
       ``(d) If the debtor fails timely to take the action 
     specified in subsection (a)(6), or in paragraph (1) or (2) of 
     section 362(h), with respect to property which a lessor or 
     bailor owns and has leased, rented, or bailed to the debtor 
     or as to which a creditor holds a security interest not 
     otherwise voidable under section 522(f), 544, 545, 547, 548, 
     or 549, nothing in this title shall prevent or limit the 
     operation of a provision in the underlying lease or agreement 
     that has the effect of placing the debtor in default under 
     that lease or agreement by reason of the occurrence, 
     pendency, or existence of a proceeding under this title or 
     the insolvency of the debtor. Nothing in this subsection 
     shall be deemed to justify limiting such a provision in any 
     other circumstance.''.

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

       (a) In General.--Section 1325(a)(5)(B)(i) of title 11, 
     United States Code, is amended to read as follows:
       ``(i) the plan provides that--
       ``(I) the holder of such claim retain the lien securing 
     such claim until the earlier of--

       ``(aa) the payment of the underlying debt determined under 
     nonbankruptcy law; or
       ``(bb) discharge under section 1328; and

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

     SEC. 307. EXEMPTIONS.

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

     SEC. 308. RESIDENCY REQUIREMENT FOR HOMESTEAD EXEMPTION.

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

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

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

       (a) Stopping Abusive Conversions From Chapter 13.--Section 
     348(f)(1) of title 11, United States Code, is amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B)--
       (A) by striking ``in the converted case, with allowed 
     secured claims'' and inserting ``only in a case converted to 
     chapter 11 or 12 but not in a case converted to chapter 7, 
     with allowed secured claims in cases under chapters 11 and 
     12''; and
       (B) by striking the period and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(C) with respect to cases converted from chapter 13--
       ``(i) the claim of any creditor holding security as of the 
     date of the petition shall continue to be secured by that 
     security unless the full amount of such claim determined 
     under applicable nonbankruptcy law has been paid in full as 
     of the date of conversion, notwithstanding any valuation or 
     determination of the amount of an allowed secured claim made 
     for the purposes of the chapter 13 proceeding; and
       ``(ii) unless a prebankruptcy default has been fully cured 
     under the plan at the time of conversion, in any proceeding 
     under this title or otherwise, the default shall have the 
     effect given under applicable nonbankruptcy law.''.
       (b) Giving Debtors the Ability To Keep Leased Personal 
     Property by Assumption.--Section 365 of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(p)(1) If a lease of personal property is rejected or not 
     timely assumed by the trustee under subsection (d), the 
     leased property is no longer property of the estate and the 
     stay under section 362(a) is automatically terminated.
       ``(2)(A) In the case of an individual under chapter 7, the 
     debtor may notify the creditor in writing that the debtor 
     desires to assume the lease. Upon being so notified, the 
     creditor may, at its option, notify the debtor that it is 
     willing to have the lease assumed by the debtor and may 
     condition such assumption on cure of any outstanding default 
     on terms set by the contract.
       ``(B) If within 30 days after notice is provided under 
     subparagraph (A), the debtor notifies the lessor in writing 
     that the lease is assumed, the liability under the lease will 
     be assumed by the debtor and not by the estate.
       ``(C) The stay under section 362 and the injunction under 
     section 524(a)(2) shall not be violated by notification of 
     the debtor and negotiation of cure under this subsection.
       ``(3) In a case under chapter 11 in which the debtor is an 
     individual and in a case under chapter 13, if the debtor is 
     the lessee with respect to personal property and the lease is 
     not assumed in the plan confirmed by the court, the lease is 
     deemed rejected as of the conclusion of the hearing on 
     confirmation. If the lease is rejected, the stay under 
     section 362 and any stay under section 1301 is automatically 
     terminated with respect to the property subject to the 
     lease.''.
       (c) Adequate Protection of Lessors and Purchase Money 
     Secured Creditors.--
       (1) Confirmation of plan.--Section 1325(a)(5)(B) of title 
     11, United States Code, is amended--
       (A) in clause (i), by striking ``and'' at the end;
       (B) in clause (ii), by striking ``or'' at the end and 
     inserting ``and''; and
       (C) by adding at the end the following:
       ``(iii) if--

       ``(I) property to be distributed pursuant to this 
     subsection is in the form of periodic payments, such payments 
     shall be in equal monthly amounts; and
       ``(II) the holder of the claim is secured by personal 
     property the amount of such payments shall not be less than 
     an amount sufficient to provide to the holder of such claim 
     adequate protection during the period of the plan; or''.

       (2) Payments.--Section 1326(a) of title 11, United States 
     Code, is amended to read as follows:
       ``(a)(1) Unless the court orders otherwise, the debtor 
     shall--
       ``(A) commence making the payments proposed by a plan 
     within 30 days after the plan is filed; or
       ``(B) if no plan is filed then as specified in the proof of 
     claim, within 30 days after the order for relief or within 15 
     days after the plan is filed, whichever is earlier.
       ``(2) A payment made under this section shall be retained 
     by the trustee until confirmation, denial of confirmation, or 
     paid by the trustee as adequate protection payments in 
     accordance with paragraph (3). If a plan is confirmed, the 
     trustee shall distribute any such payment in accordance with 
     the plan as soon as is practicable. If a plan is not 
     confirmed, the trustee shall return any such payments not 
     previously paid and not yet due and owing to creditors 
     pursuant to paragraph (3) to the debtor, after deducting any 
     unpaid claim allowed under section 503(b).
       ``(3)(A) As soon as is practicable, and not later than 40 
     days after the filing of the case, the trustee shall--
       ``(i) pay from payments made under this section the 
     adequate protection payments proposed in the plan; or
       ``(ii) if no plan is filed then, according to the terms of 
     the proof of claim.
       ``(B) The court may, upon notice and a hearing, modify, 
     increase, or reduce the payments required under this 
     paragraph pending confirmation of a plan.''.

     SEC. 310. LIMITATION ON LUXURY GOODS.

       Section 523(a)(2)(C) of title 11, United States Code, is 
     amended to read as follows:
       ``(C)(i) for purposes of subparagraph (A)--
       ``(I) consumer debts owed to a single creditor and 
     aggregating more than $250 for luxury goods or services 
     incurred by an individual debtor on or within 90 days before 
     the order for relief under this title are presumed to be 
     nondischargeable; and
       ``(II) cash advances aggregating more than $750 that are 
     extensions of consumer credit under an open end credit plan 
     obtained by an individual debtor on or within 70 days before 
     the order for relief under this title, are presumed to be 
     nondischargeable; and
       ``(ii) for purposes of this subparagraph--
       ``(I) the term `extension of credit under an open end 
     credit plan' means an extension of credit under an open end 
     credit plan, within the meaning of the

[[Page S406]]

     Consumer Credit Protection Act (15 U.S.C. 1601 et seq.);
       ``(II) the term `open end credit plan' has the meaning 
     given that term under section 103 of Consumer Credit 
     Protection Act (15 U.S.C. 1602); and
       ``(III) the term `luxury goods or services' does not 
     include goods or services reasonably necessary for the 
     support or maintenance of the debtor or a dependent of the 
     debtor.''.

     SEC. 311. AUTOMATIC STAY.

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

     SEC. 312. EXTENSION OF PERIOD BETWEEN BANKRUPTCY DISCHARGES.

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

     SEC. 313. DEFINITION OF HOUSEHOLD GOODS AND ANTIQUES.

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

     SEC. 314. DEBT INCURRED TO PAY NONDISCHARGEABLE DEBTS.

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

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

       (a) Notice.--Section 342 of title 11, United States Code, 
     is amended--
       (1) in subsection (c)--
       (A) by inserting ``(1)'' after ``(c)''; and
       (B) by striking ``, but the failure of such notice to 
     contain such information shall not invalidate the legal 
     effect of such notice''; and
       (2) by adding at the end the following:
       ``(d) At any time, a creditor, in a case of an individual 
     debtor under chapter 7 or 13, may file with the court and 
     serve on the debtor a notice of the address to be used to 
     notify the creditor in that case. Five days after receipt of 
     such notice, if the court or the debtor is required to give 
     the creditor notice, such notice shall be given at that 
     address.
       ``(e) An entity may file with the court a notice stating 
     its address for notice in cases under chapters 7 and 13. 
     After 30 days following the filing of such notice, any notice 
     in any case filed under chapter 7 or 13 given by the court 
     shall be to that address unless specific notice is given 
     under subsection (d) with respect to a particular case.
       ``(f)(1) Notice given to a creditor other than as provided 
     in this section shall not be effective notice until that 
     notice has been brought to the attention of the creditor. If 
     the creditor designates a person or department to be 
     responsible for receiving notices concerning bankruptcy cases 
     and establishes reasonable procedures so that bankruptcy 
     notices received by the creditor are to be delivered to such 
     department or person, notice shall not be considered to have 
     been brought to the attention of the creditor until received 
     by such person or department.
       ``(2) No sanction under section 362(h) or any other 
     sanction that a court may impose on account of violations of 
     the stay under section 362(a) or failure to comply with 
     section 542 or 543 may be imposed on any action of the 
     creditor unless the action takes place after the creditor has 
     received notice of the commencement of the case effective 
     under this section.''.
       (b) Debtor's Duties.--Section 521 of title 11, United 
     States Code, as amended by section 305 of this Act, is 
     amended--
       (1) in subsection (a), by striking paragraph (1) and 
     inserting the following:
       ``(1) file--
       ``(A) a list of creditors; and
       ``(B) unless the court orders otherwise--
       ``(i) a schedule of assets and liabilities;
       ``(ii) a schedule of current income and current 
     expenditures;
       ``(iii) a statement of the debtor's financial affairs and, 
     if applicable, a certificate--

       ``(I) of an attorney whose name is on the petition as the 
     attorney for the debtor or any bankruptcy petition preparer 
     signing the petition under section 110(b)(1) indicating that 
     such attorney or bankruptcy petition preparer delivered to 
     the debtor any notice required by section 342(b); or
       ``(II) if no attorney for the debtor is indicated and no 
     bankruptcy petition preparer signed the petition, of the 
     debtor that such notice was obtained and read by the debtor;

       ``(iv) copies of all payment advices or other evidence of 
     payment, if any, received by the debtor from any employer of 
     the debtor in the period 60 days before the filing of the 
     petition;
       ``(v) a statement of the amount of projected monthly net 
     income, itemized to show how the amount is calculated; and
       ``(vi) a statement disclosing any reasonably anticipated 
     increase in income or expenditures over the 12-month period 
     following the date of filing''; and
       (2) by adding at the end the following:
       ``(e)(1) At any time, a creditor, in the case of an 
     individual under chapter 7 or 13, may file with the court 
     notice that the creditor requests the petition, schedules, 
     and a statement of affairs filed by the debtor in the case 
     and the court shall make those documents available to the 
     creditor who request those documents.
       ``(2)(A) At any time, a creditor in a case under chapter 13 
     may file with the court notice that the creditor requests the 
     plan filed by the debtor in the case.
       ``(B) The court shall make such plan available to the 
     creditor who request such plan--
       ``(i) at a reasonable cost; and
       ``(ii) not later than 5 days after such request.
       ``(f) An individual debtor in a case under chapter 7, 11, 
     or 13 shall file with the court at the request of any party 
     in interest--
       ``(1) at the time filed with the taxing authority, all tax 
     returns required under applicable law, including any 
     schedules or attachments, with respect to the period from the 
     commencement of the case until such time as the case is 
     closed;
       ``(2) at the time filed with the taxing authority, all tax 
     returns required under applicable law, including any 
     schedules or attachments, that were not filed with the taxing 
     authority when the schedules under subsection (a)(1) were 
     filed with respect to the period that is 3 years before the 
     order of relief;
       ``(3) any amendments to any of the tax returns, including 
     schedules or attachments, described in paragraph (1) or (2); 
     and
       ``(4) in a case under chapter 13, a statement subject to 
     the penalties of perjury by the debtor of the debtor's income 
     and expenditures in the preceding tax year and monthly 
     income, that shows how the amounts are calculated--
       ``(A) beginning on the date that is the later of 90 days 
     after the close of the debtor's tax year or 1 year after the 
     order for relief, unless a plan has been confirmed; and
       ``(B) thereafter, on or before the date that is 45 days 
     before each anniversary of the confirmation of the plan until 
     the case is closed.
       ``(g)(1) A statement referred to in subsection (f)(4) shall 
     disclose--
       ``(A) the amount and sources of income of the debtor;
       ``(B) the identity of any person responsible with the 
     debtor for the support of any dependent of the debtor; and
       ``(C) the identity of any person who contributed, and the 
     amount contributed, to the household in which the debtor 
     resides.

[[Page S407]]

       ``(2) The tax returns, amendments, and statement of income 
     and expenditures described in paragraph (1) shall be 
     available to the United States trustee, any bankruptcy 
     administrator, any trustee, and any party in interest for 
     inspection and copying, subject to the requirements of 
     subsection (h).
       ``(h)(1) Not later than 30 days after the date of enactment 
     of the Bankruptcy Reform Act of 2000, the Director of the 
     Administrative Office of the United States Courts shall 
     establish procedures for safeguarding the confidentiality of 
     any tax information required to be provided under this 
     section.
       ``(2) The procedures under paragraph (1) shall include 
     restrictions on creditor access to tax information that is 
     required to be provided under this section.
       ``(3) Not later than 1 year after the date of enactment of 
     the Bankruptcy Reform Act of 2000, the Director of the 
     Administrative Office of the United States Courts shall 
     prepare and submit to Congress a report that--
       ``(A) assesses the effectiveness of the procedures under 
     paragraph (1); and
       ``(B) if appropriate, includes proposed legislation to--
       ``(i) further protect the confidentiality of tax 
     information; and
       ``(ii) provide penalties for the improper use by any person 
     of the tax information required to be provided under this 
     section.
       ``(i) If requested by the United States trustee or a 
     trustee serving in the case, the debtor shall provide--
       ``(1) a document that establishes the identity of the 
     debtor, including a driver's license, passport, or other 
     document that contains a photograph of the debtor; and
       ``(2) such other personal identifying information relating 
     to the debtor that establishes the identity of the debtor.''.

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

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

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

       (a) Hearing.--Section 1324 of title 11, United States Code, 
     is amended--
       (1) by striking ``After'' and inserting the following:
       ``(a) Except as provided in subsection (b) and after''; and
       (2) by adding at the end the following:
       ``(b) The hearing on confirmation of the plan may be held 
     not later than 45 days after the meeting of creditors under 
     section 341(a).''.
       (b) Filing of Plan.--Section 1321 of title 11, United 
     States Code, is amended to read as follows:

     ``Sec. 1321. Filing of plan

       ``Not later than 90 days after the order for relief under 
     this chapter, the debtor shall file a plan, except that the 
     court may extend such period if the need for an extension is 
     attributable to circumstances for which the debtor should not 
     justly be held accountable.''.

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

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

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

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

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

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

     SEC. 321. CHAPTER 11 CASES FILED BY INDIVIDUALS.

       (a) Property of the Estate.--
       (1) In general.--Subchapter I of chapter 11 of title 11, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 1115. Property of the estate

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

``1115. Property of the estate.''.

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

[[Page S408]]

       ``(f)(1) Sections 1121 through 1128 of this title and the 
     requirements of section 1129 of this title apply to any 
     modification under subsection (a).
       ``(2) The plan, as modified, shall become the plan only 
     after there has been disclosure under section 1125, as the 
     court may direct, notice and a hearing, and such modification 
     is approved.''.

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

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

     SEC. 323. CLARIFICATION OF POSTPETITION WAGES AND BENEFITS.

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

     SEC. 324. LIMITATION.

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

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

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

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

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

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

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

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

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

       ``(I) because that person provides or has provided health 
     services;
       ``(II) because that person is or has been obtaining health 
     services; or
       ``(III) to deter that person, any other person, or a class 
     of persons from obtaining or providing health services; or

       ``(ii) damage or destruction of property of a health care 
     facility; or
       ``(D) an actual or alleged violation of a court order or 
     injunction that protects access to a health care facility or 
     the provision of health services.''.

       TITLE IV--GENERAL AND SMALL BUSINESS BANKRUPTCY PROVISIONS

           Subtitle A--General Business Bankruptcy Provisions

     SEC. 401. ROLLING STOCK EQUIPMENT.

       (a) In General.--Section 1168 of title 11, United States 
     Code, is amended to read as follows:

     ``Sec. 1168. Rolling stock equipment

       ``(a)(1) The right of a secured party with a security 
     interest in or of a lessor or conditional vendor of equipment 
     described in paragraph (2) to take possession of such 
     equipment in compliance with an equipment security agreement, 
     lease, or conditional sale contract, and to enforce any of 
     its other rights or remedies under such security agreement, 
     lease, or conditional sale contract, to sell, lease, or 
     otherwise retain or dispose of such equipment, is not limited 
     or otherwise affected by any other provision of this title or 
     by any power of the court, except that the right to take 
     possession and enforce those other rights and remedies shall 
     be subject to section 362, if--
       ``(A) before the date that is 60 days after the date of 
     commencement of a case under this chapter, the trustee, 
     subject to the court's approval, agrees to perform all 
     obligations of the debtor under such security agreement, 
     lease, or conditional sale contract; and
       ``(B) any default, other than a default of a kind described 
     in section 365(b)(2), under such security agreement, lease, 
     or conditional sale contract that--
       ``(i) occurs before the date of commencement of the case 
     and is an event of default therewith is cured before the 
     expiration of such 60-day period;
       ``(ii) occurs or becomes an event of default after the date 
     of commencement of the case and before the expiration of such 
     60-day period is cured before the later of--

[[Page S409]]

       ``(I) the date that is 30 days after the date of the 
     default or event of the default; or
       ``(II) the expiration of such 60-day period; and
       ``(iii) occurs on or after the expiration of such 60-day 
     period is cured in accordance with the terms of such security 
     agreement, lease, or conditional sale contract, if cure is 
     permitted under that agreement, lease, or conditional sale 
     contract.
       ``(2) The equipment described in this paragraph--
       ``(A) is rolling stock equipment or accessories used on 
     rolling stock equipment, including superstructures or racks, 
     that is subject to a security interest granted by, leased to, 
     or conditionally sold to a debtor; and
       ``(B) includes all records and documents relating to such 
     equipment that are required, under the terms of the security 
     agreement, lease, or conditional sale contract, to be 
     surrendered or returned by the debtor in connection with the 
     surrender or return of such equipment.
       ``(3) Paragraph (1) applies to a secured party, lessor, or 
     conditional vendor acting in its own behalf or acting as 
     trustee or otherwise in behalf of another party.
       ``(b) The trustee and the secured party, lessor, or 
     conditional vendor whose right to take possession is 
     protected under subsection (a) may agree, subject to the 
     court's approval, to extend the 60-day period specified in 
     subsection (a)(1).
       ``(c)(1) In any case under this chapter, the trustee shall 
     immediately surrender and return to a secured party, lessor, 
     or conditional vendor, described in subsection (a)(1), 
     equipment described in subsection (a)(2), if at any time 
     after the date of commencement of the case under this chapter 
     such secured party, lessor, or conditional vendor is entitled 
     under subsection (a)(1) to take possession of such equipment 
     and makes a written demand for such possession of the 
     trustee.
       ``(2) At such time as the trustee is required under 
     paragraph (1) to surrender and return equipment described in 
     subsection (a)(2), any lease of such equipment, and any 
     security agreement or conditional sale contract relating to 
     such equipment, if such security agreement or conditional 
     sale contract is an executory contract, shall be deemed 
     rejected.
       ``(d) With respect to equipment first placed in service on 
     or before October 22, 1994, for purposes of this section--
       ``(1) the term `lease' includes any written agreement with 
     respect to which the lessor and the debtor, as lessee, have 
     expressed in the agreement or in a substantially 
     contemporaneous writing that the agreement is to be treated 
     as a lease for Federal income tax purposes; and
       ``(2) the term `security interest' means a purchase-money 
     equipment security interest.
       ``(e) With respect to equipment first placed in service 
     after October 22, 1994, for purposes of this section, the 
     term `rolling stock equipment' includes rolling stock 
     equipment that is substantially rebuilt and accessories used 
     on such equipment.''.
       (b) Aircraft Equipment and Vessels.--Section 1110 of title 
     11, United States Code, is amended to read as follows:

     ``Sec. 1110. Aircraft equipment and vessels

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

     SEC. 402. ADEQUATE PROTECTION FOR INVESTORS.

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

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

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

     SEC. 404. PROTECTION OF REFINANCE OF SECURITY INTEREST.

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

     SEC. 405. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.

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

     SEC. 406. CREDITORS AND EQUITY SECURITY HOLDERS COMMITTEES.

       (a) Appointment.--Section 1102(a)(2) of title 11, United 
     States Code, is amended by inserting before the first 
     sentence the following: ``On its own motion or on request of 
     a party in interest, and after notice and hearing, the court 
     may order a change in the membership of a committee appointed 
     under this subsection, if the court determines that the 
     change is necessary to ensure adequate representation of 
     creditors or equity security holders. The court may increase

[[Page S410]]

     the number of members of a committee to include a creditor 
     that is a small business concern (as described in section 
     3(a)(1) of the Small Business Act (15 U.S.C. 632(a)(1))), if 
     the court determines that the creditor holds claims (of the 
     kind represented by the committee) the aggregate amount of 
     which, in comparison to the annual gross revenue of that 
     creditor, is disproportionately large.''.
       (b) Information.--Section 1102(b) of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(3) A committee appointed under subsection (a) shall--
       ``(A) provide access to information for creditors who--
       ``(i) hold claims of the kind represented by that 
     committee; and
       ``(ii) are not appointed to the committee;
       ``(B) solicit and receive comments from the creditors 
     described in subparagraph (A); and
       ``(C) be subject to a court order that compels any 
     additional report or disclosure to be made to the creditors 
     described in subparagraph (A).''.

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

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

     SEC. 408. LIMITATION.

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

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

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

     SEC. 410. POSTPETITION DISCLOSURE AND SOLICITATION.

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

     SEC. 411. PREFERENCES.

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

     SEC. 412. VENUE OF CERTAIN PROCEEDINGS.

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

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

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

     SEC. 414. FEES ARISING FROM CERTAIN OWNERSHIP INTERESTS.

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

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

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

     SEC. 416. DEFINITION OF DISINTERESTED PERSON.

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

     SEC. 417. FACTORS FOR COMPENSATION OF PROFESSIONAL PERSONS.

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

     SEC. 418. APPOINTMENT OF ELECTED TRUSTEE.

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

     SEC. 419. UTILITY SERVICE.

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

     SEC. 420. BANKRUPTCY FEES.

       Section 1930 of title 28, United States Code, is amended--
       (1) in subsection (a), by striking ``Notwithstanding 
     section 1915 of this title, the parties'' and inserting 
     ``Subject to subsection (f), the parties''; and

[[Page S411]]

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

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

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

            Subtitle B--Small Business Bankruptcy Provisions

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

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

     SEC. 432. DEFINITIONS; EFFECT OF DISCHARGE.

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

     SEC. 433. STANDARD FORM DISCLOSURE STATEMENT AND PLAN.

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

     SEC. 434. UNIFORM NATIONAL REPORTING REQUIREMENTS.

       (a) Reporting Required.--
       (1) In general.--Chapter 3 of title 11, United States Code, 
     is amended by inserting after section 307 the following:

     ``Sec. 308. Debtor reporting requirements

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

``308. Debtor reporting requirements.''.

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

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

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

     SEC. 436. DUTIES IN SMALL BUSINESS CASES.

       (a) Duties in Chapter 11 Cases.--Subchapter I of title 11, 
     United States Code, as amended by section 321 of this Act, is 
     amended by adding at the end the following:

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

       ``In a small business case, a trustee or the debtor in 
     possession, in addition to the duties provided in this title 
     and as otherwise required by law, shall--
       ``(1) append to the voluntary petition or, in an 
     involuntary case, file within 7 days after the date of the 
     order for relief--
       ``(A) its most recent balance sheet, statement of 
     operations, cash-flow statement, Federal income tax return; 
     or
       ``(B) a statement made under penalty of perjury that no 
     balance sheet, statement of operations, or cash-flow 
     statement has been prepared and no Federal tax return has 
     been filed;
       ``(2) attend, through its senior management personnel and 
     counsel, meetings scheduled by the court or the United States 
     trustee, including initial debtor interviews, scheduling 
     conferences, and meetings of creditors convened under section 
     341 unless the court waives that requirement after notice and 
     hearing, upon a finding of extraordinary and compelling 
     circumstances;
       ``(3) timely file all schedules and statements of financial 
     affairs, unless the court, after notice

[[Page S412]]

     and a hearing, grants an extension, which shall not extend 
     such time period to a date later than 30 days after the date 
     of the order for relief, absent extraordinary and compelling 
     circumstances;
       ``(4) file all postpetition financial and other reports 
     required by the Federal Rules of Bankruptcy Procedure or by 
     local rule of the district court;
       ``(5) subject to section 363(c)(2), maintain insurance 
     customary and appropriate to the industry;
       ``(6)(A) timely file tax returns and other required 
     government filings; and
       ``(B) subject to section 363(c)(2), timely pay all 
     administrative expense tax claims, except those being 
     contested by appropriate proceedings being diligently 
     prosecuted; and
       ``(7) allow the United States trustee, or a designated 
     representative of the United States trustee, to inspect the 
     debtor's business premises, books, and records at reasonable 
     times, after reasonable prior written notice, unless notice 
     is waived by the debtor.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     11 of title 11, United States Code, is amended by adding at 
     the end of the matter relating to subchapter I the following:

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

     SEC. 437. PLAN FILING AND CONFIRMATION DEADLINES.

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

     SEC. 438. PLAN CONFIRMATION DEADLINE.

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

     SEC. 439. DUTIES OF THE UNITED STATES TRUSTEE.

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

     SEC. 440. SCHEDULING CONFERENCES.

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

     SEC. 441. SERIAL FILER PROVISIONS.

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

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

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

[[Page S413]]

     period of time or compelling circumstances prevent the court 
     from meeting the time limits established by this 
     paragraph.''.
       (b) Additional Grounds for Appointment of Trustee.--Section 
     1104(a) of title 11, United States Code, is amended--
       (1) in paragraph (1), by striking ``or'' at the end;
       (2) in paragraph (2), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(3) if grounds exist to convert or dismiss the case under 
     section 1112, but the court determines that the appointment 
     of a trustee or an examiner is in the best interests of 
     creditors and the estate.''.

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

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

     SEC. 444. PAYMENT OF INTEREST.

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

     SEC. 445. TECHNICAL CORRECTION.

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

                TITLE V--MUNICIPAL BANKRUPTCY PROVISIONS

     SEC. 501. PETITION AND PROCEEDINGS RELATED TO PETITION.

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

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

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

           TITLE VI--IMPROVED BANKRUPTCY STATISTICS AND DATA

     SEC. 601. AUDIT PROCEDURES.

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

     SEC. 602. IMPROVED BANKRUPTCY STATISTICS.

       (a) Amendment.--Chapter 6 of title 28, United States Code, 
     is amended by adding at the end the following:

     ``Sec. 159. Bankruptcy statistics

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

[[Page S414]]

       ``(H) the number of cases in which sanctions under Rule 
     9011 of the Federal Rules of Bankruptcy Procedure were 
     imposed against debtor's counsel and damages awarded under 
     such rule.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     6 of title 28, United States Code, is amended by adding at 
     the end the following:

``159. Bankruptcy statistics.''.

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

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

       (a) Amendment.--Chapter 39 of title 28, United States Code, 
     is amended by inserting after section 589a the following:

     ``Sec. 589b. Bankruptcy data

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

``589b. Bankruptcy data.''.

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

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

                  TITLE VII--BANKRUPTCY TAX PROVISIONS

     SEC. 701. TREATMENT OF CERTAIN LIENS.

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

     SEC. 702. TREATMENT OF FUEL TAX CLAIMS.

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

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

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

     SEC. 704. RATE OF INTEREST ON TAX CLAIMS.

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

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

       ``(a) If any provision of this title requires the payment 
     of interest on a tax claim or the payment of interest to 
     enable a creditor to receive the present value of the allowed 
     amount of a tax claim, the rate of interest shall be the rate 
     shall be determined under applicable nonbankruptcy law.
       ``(b) In the case of taxes paid under a confirmed plan 
     under this title, the rate of interest

[[Page S415]]

     shall be determined as of the calendar month in which the 
     plan is confirmed.''.
       (b) Clerical Amendment.--The table of sections for chapter 
     5 of title 11, United States Code, is amended by inserting 
     after the item relating to section 510 the following:

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

     SEC. 705. PRIORITY OF TAX CLAIMS.

       Section 507(a)(8) of title 11, United States Code, is 
     amended--
       (1) in subparagraph (A)--
       (A) in the matter preceding clause (i), by inserting ``for 
     a taxable year ending on or before the date of filing of the 
     petition'' after ``gross receipts'';
       (B) in clause (i)--
       (i) by striking ``for a taxable year ending on or before 
     the date of filing of the petition''; and
       (ii) by inserting before the semicolon at the end, the 
     following: ``, plus any time during which the stay of 
     proceedings was in effect in a prior case under this title or 
     during which collection was precluded by the existence of 1 
     or more confirmed plans under this title, plus 90 days''; and
       (C) by striking clause (ii) and inserting the following:
       ``(ii) assessed within 240 days before the date of the 
     filing of the petition, exclusive of--

       ``(I) any time during which an offer in compromise with 
     respect to that tax was pending or in effect during that 240-
     day period, plus 30 days; and
       ``(II) any time during which a stay of proceedings against 
     collections was in effect in a prior case under this title 
     during that 240-day period; plus 90 days.''; and

       (2) by adding at the end the following:
       ``(H) An otherwise applicable time period specified in this 
     paragraph shall be suspended for--
       ``(i) any period during which a governmental unit is 
     prohibited under applicable nonbankruptcy law from collecting 
     a tax as a result of a request by the debtor for a hearing 
     and an appeal of any collection action taken or proposed 
     against the debtor; plus
       ``(ii) 90 days.''.

     SEC. 706. PRIORITY PROPERTY TAXES INCURRED.

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

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

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

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

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

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

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

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

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

     SEC. 711. AVOIDANCE OF STATUTORY TAX LIENS PROHIBITED.

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

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

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

     SEC. 713. TARDILY FILED PRIORITY TAX CLAIMS.

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

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

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

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

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

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

       (a) Filing of Prepetition Tax Returns Required for Plan 
     Confirmation.--Section 1325(a) of title 11, United States 
     Code, as amended by section 213 of this Act, is amended--
       (1) in paragraph (6), by striking ``and'' at the end;
       (2) in paragraph (7), by striking the period at the end and 
     inserting ``; and''; and
       (3) by inserting after paragraph (7) the following:
       ``(8) if the debtor has filed all applicable Federal, 
     State, and local tax returns as required by section 1308.''.
       (b) Additional Time Permitted for Filing Tax Returns.--
       (1) In general.--Chapter 13 of title 11, United States 
     Code, is amended by adding at the end the following:

     ``Sec. 1308. Filing of prepetition tax returns

       ``(a) Not later than the day before the date on which the 
     meeting of the creditors is first scheduled to be held under 
     section 341(a), the debtor shall file with appropriate tax 
     authorities all tax returns for all taxable periods ending 
     during the 4-year period ending on the date of the filing of 
     the petition.
       ``(b)(1) Subject to paragraph (2), if the tax returns 
     required by subsection (a) have not been filed by the date on 
     which the meeting of creditors is first scheduled to be held 
     under section 341(a), the trustee may hold open that meeting 
     for a reasonable period of time to allow the debtor an 
     additional period of time to file any

[[Page S416]]

     unfiled returns, but such additional period of time shall not 
     extend beyond--
       ``(A) for any return that is past due as of the date of the 
     filing of the petition, the date that is 120 days after the 
     date of that meeting; or
       ``(B) for any return that is not past due as of the date of 
     the filing of the petition, the later of--
       ``(i) the date that is 120 days after the date of that 
     meeting; or
       ``(ii) the date on which the return is due under the last 
     automatic extension of time for filing that return to which 
     the debtor is entitled, and for which request is timely made, 
     in accordance with applicable nonbankruptcy law.
       ``(2) Upon notice and hearing, and order entered before the 
     tolling of any applicable filing period determined under this 
     subsection, if the debtor demonstrates by clear and 
     convincing evidence that the failure to file a return as 
     required under this subsection is attributable to 
     circumstances beyond the control of the debtor, the court may 
     extend the filing period established by the trustee under 
     this subsection for--
       ``(A) a period of not more than 30 days for returns 
     described in paragraph (1); and
       ``(B) a period not to extend after the applicable extended 
     due date for a return described in paragraph (2).
       ``(c) For purposes of this section, the term `return' 
     includes a return prepared pursuant to section 6020 (a) or 
     (b) of the Internal Revenue Code of 1986, or a similar State 
     or local law, or a written stipulation to a judgment or a 
     final order entered by a nonbankruptcy tribunal.''.
       (2) Conforming amendment.--The table of sections for 
     chapter 13 of title 11, United States Code, is amended by 
     inserting after the item relating to section 1307 the 
     following:

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

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

     SEC. 717. STANDARDS FOR TAX DISCLOSURE.

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

     SEC. 718. SETOFF OF TAX REFUNDS.

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

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

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

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

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

[[Page S417]]

     full amount of income from the discharge of indebtedness has 
     not been applied.
       ``(k)(1) Except as provided in this section and section 
     505, the time and manner of filing tax returns and the items 
     of income, gain, loss, deduction, and credit of any taxpayer 
     shall be determined under applicable nonbankruptcy law.
       ``(2) For Federal tax purposes, the provisions of this 
     section are subject to the Internal Revenue Code of 1986 and 
     other applicable Federal nonbankruptcy law.''.
       (b) Conforming Amendments.--
       (1) Section 728 of title 11, United States Code, is 
     repealed.
       (2) Section 1146 of title 11, United States Code, is 
     amended by striking subsections (a) and (b) and by 
     redesignating subsections (c) and (d) as subsections (a) and 
     (b), respectively.
       (3) Section 1231 of title 11, United States Code, is 
     amended by striking subsections (a) and (b) and by 
     redesignating subsections (c) and (d) as subsections (a) and 
     (b), respectively.

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

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

           TITLE VIII--ANCILLARY AND OTHER CROSS-BORDER CASES

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

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

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

``Sec.
``1501. Purpose and scope of application.

                   ``SUBCHAPTER I--GENERAL PROVISIONS

``1502. Definitions.
``1503. International obligations of the United States.
``1504. Commencement of ancillary case.
``1505. Authorization to act in a foreign country.
``1506. Public policy exception.
``1507. Additional assistance.
``1508. Interpretation.

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

``1509. Right of direct access.
``1510. Limited jurisdiction.
``1511. Commencement of case under section 301 or 303.
``1512. Participation of a foreign representative in a case under this 
              title.
``1513. Access of foreign creditors to a case under this title.
``1514. Notification to foreign creditors concerning a case under this 
              title.

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

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

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

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

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

``1528. Commencement of a case under this title after recognition of a 
              foreign main proceeding.
``1529. Coordination of a case under this title and a foreign 
              proceeding.
``1530. Coordination of more than 1 foreign proceeding.
``1531. Presumption of insolvency based on recognition of a foreign 
              main proceeding.
       ``1532. Rule of payment in concurrent proceedings.

     ``Sec. 1501. Purpose and scope of application

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

                   ``SUBCHAPTER I--GENERAL PROVISIONS

     ``Sec. 1502. Definitions

       ``For the purposes of this chapter, the term--
       ``(1) `debtor' means an entity that is the subject of a 
     foreign proceeding;
       ``(2) `establishment' means any place of operations where 
     the debtor carries out a nontransitory economic activity;
       ``(3) `foreign court' means a judicial or other authority 
     competent to control or supervise a foreign proceeding;
       ``(4) `foreign main proceeding' means a foreign proceeding 
     taking place in the country where the debtor has the center 
     of its main interests;
       ``(5) `foreign nonmain proceeding' means a foreign 
     proceeding, other than a foreign main proceeding, taking 
     place in a country where the debtor has an establishment;
       ``(6) `trustee' includes a trustee, a debtor in possession 
     in a case under any chapter of this title, or a debtor under 
     chapter 9 of this title; and
       ``(7) `within the territorial jurisdiction of the United 
     States' when used with reference to property of a debtor 
     refers to tangible property located within the territory of 
     the United States and intangible property deemed under 
     applicable nonbankruptcy law to be located within that 
     territory, including any property subject to attachment or 
     garnishment that may properly be seized or garnished by an 
     action in a Federal or State court in the United States.

     ``Sec. 1503. International obligations of the United States

       ``To the extent that this chapter conflicts with an 
     obligation of the United States arising out of any treaty or 
     other form of agreement to which it is a party with 1 or more 
     other countries, the requirements of the treaty or agreement 
     prevail.

     ``Sec. 1504. Commencement of ancillary case

       ``A case under this chapter is commenced by the filing of a 
     petition for recognition of a foreign proceeding under 
     section 1515.

     ``Sec. 1505. Authorization to act in a foreign country

       ``A trustee or another entity, including an examiner, may 
     be authorized by the court to act in a foreign country on 
     behalf of an estate created under section 541. An entity 
     authorized to act under this section may act in any way 
     permitted by the applicable foreign law.

     ``Sec. 1506. Public policy exception

       ``Nothing in this chapter prevents the court from refusing 
     to take an action governed by this chapter if the action 
     would be manifestly contrary to the public policy of the 
     United States.

     ``Sec. 1507. Additional assistance

       ``(a) Subject to the specific limitations under other 
     provisions of this chapter, the court, upon recognition of a 
     foreign proceeding, may provide additional assistance to a 
     foreign representative under this title or under other laws 
     of the United States.
       ``(b) In determining whether to provide additional 
     assistance under this title or under other laws of the United 
     States, the court shall consider whether such additional 
     assistance, consistent with the principles of comity, will 
     reasonably assure--
       ``(1) just treatment of all holders of claims against or 
     interests in the debtor's property;
       ``(2) protection of claim holders in the United States 
     against prejudice and inconvenience in the processing of 
     claims in such foreign proceeding;
       ``(3) prevention of preferential or fraudulent dispositions 
     of property of the debtor;
       ``(4) distribution of proceeds of the debtor's property 
     substantially in accordance with the order prescribed by this 
     title; and
       ``(5) if appropriate, the provision of an opportunity for a 
     fresh start for the individual that such foreign proceeding 
     concerns.

     ``Sec. 1508. Interpretation

       ``In interpreting this chapter, the court shall consider 
     its international origin, and the need to promote an 
     application of this chapter that is consistent with the 
     application of similar statutes adopted by foreign 
     jurisdictions.

[[Page S418]]

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

     ``Sec. 1509. Right of direct access

       ``(a) A foreign representative is entitled to commence a 
     case under section 1504 by filing a petition for recognition 
     under section 1515, and upon recognition, to apply directly 
     to other Federal and State courts for appropriate relief in 
     those courts.
       ``(b) Upon recognition, and subject to section 1510, a 
     foreign representative shall have the capacity to sue and be 
     sued, and shall be subject to the laws of the United States 
     of general applicability.
       ``(c) Subject to section 1510, a foreign representative is 
     subject to laws of general application.
       ``(d) Recognition under this chapter is prerequisite to the 
     granting of comity or cooperation to a foreign representative 
     in any Federal or State court in the United States. Any 
     request for comity or cooperation by a foreign representative 
     in any court shall be accompanied by a sworn statement 
     setting forth whether recognition under section 1515 has been 
     sought and the status of any such petition.
       ``(e) Upon denial of recognition under this chapter, the 
     court may issue appropriate orders necessary to prevent an 
     attempt to obtain comity or cooperation from courts in the 
     United States without such recognition.

     ``Sec. 1510. Limited jurisdiction

       ``The sole fact that a foreign representative files a 
     petition under section 1515 does not subject the foreign 
     representative to the jurisdiction of any court in the United 
     States for any other purpose.

     ``Sec. 1511. Commencement of case under section 301 or 303

       ``(a) Upon recognition, a foreign representative may 
     commence--
       ``(1) an involuntary case under section 303; or
       ``(2) a voluntary case under section 301 or 302, if the 
     foreign proceeding is a foreign main proceeding.
       ``(b) The petition commencing a case under subsection (a) 
     must be accompanied by a statement describing the petition 
     for recognition and its current status. The court where the 
     petition for recognition has been filed must be advised of 
     the foreign representative's intent to commence a case under 
     subsection (a) prior to such commencement.

     ``Sec. 1512. Participation of a foreign representative in a 
       case under this title

       ``Upon recognition of a foreign proceeding, the foreign 
     representative in that proceeding is entitled to participate 
     as a party in interest in a case regarding the debtor under 
     this title.

     ``Sec. 1513. Access of foreign creditors to a case under this 
       title

       ``(a) Foreign creditors have the same rights regarding the 
     commencement of, and participation in, a case under this 
     title as domestic creditors.
       ``(b)(1) Subsection (a) does not change or codify law in 
     effect on the date of enactment of this chapter as to the 
     priority of claims under section 507 or 726, except that the 
     claim of a foreign creditor under section 507 or 726 shall 
     not be given a lower priority than that of general unsecured 
     claims without priority solely because the holder of such 
     claim is a foreign creditor.
       ``(2)(A) Subsection (a) and paragraph (1) do not change or 
     codify law in effect on the date of enactment of this chapter 
     as to the allowability of foreign revenue claims or other 
     foreign public law claims in a proceeding under this title.
       ``(B) Allowance and priority as to a foreign tax claim or 
     other foreign public law claim shall be governed by any 
     applicable tax treaty of the United States, under the 
     conditions and circumstances specified therein.

     ``Sec. 1514. Notification to foreign creditors concerning a 
       case under this title

       ``(a) Whenever in a case under this title notice is to be 
     given to creditors generally or to any class or category of 
     creditors, such notice shall also be given to the known 
     creditors generally, or to creditors in the notified class or 
     category, that do not have addresses in the United States. 
     The court may order that appropriate steps be taken with a 
     view to notifying any creditor whose address is not yet 
     known.
       ``(b) Such notification to creditors with foreign addresses 
     described in subsection (a) shall be given individually, 
     unless the court considers that, under the circumstances, 
     some other form of notification would be more appropriate. No 
     letters rogatory or other similar formality is required.
       ``(c) When a notification of commencement of a case is to 
     be given to foreign creditors, the notification shall--
       ``(1) indicate the time period for filing proofs of claim 
     and specify the place for their filing;
       ``(2) indicate whether secured creditors need to file their 
     proofs of claim; and
       ``(3) contain any other information required to be included 
     in such a notification to creditors pursuant to this title 
     and the orders of the court.
       ``(d) Any rule of procedure or order of the court as to 
     notice or the filing of a claim shall provide such additional 
     time to creditors with foreign addresses as is reasonable 
     under the circumstances.

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

     ``Sec. 1515. Application for recognition of a foreign 
       proceeding

       ``(a) A foreign representative applies to the court for 
     recognition of the foreign proceeding in which the foreign 
     representative has been appointed by filing a petition for 
     recognition.
       ``(b) A petition for recognition shall be accompanied by--
       ``(1) a certified copy of the decision commencing the 
     foreign proceeding and appointing the foreign representative;
       ``(2) a certificate from the foreign court affirming the 
     existence of the foreign proceeding and of the appointment of 
     the foreign representative; or
       ``(3) in the absence of evidence referred to in paragraphs 
     (1) and (2), any other evidence acceptable to the court of 
     the existence of the foreign proceeding and of the 
     appointment of the foreign representative.
       ``(c) A petition for recognition shall also be accompanied 
     by a statement identifying all foreign proceedings with 
     respect to the debtor that are known to the foreign 
     representative.
       ``(d) The documents referred to in paragraphs (1) and (2) 
     of subsection (b) must be translated into English. The court 
     may require a translation into English of additional 
     documents.

     ``Sec. 1516. Presumptions concerning recognition

       ``(a) If the decision or certificate referred to in section 
     1515(b) indicates that the foreign proceeding is a foreign 
     proceeding as defined in section 101 and that the person or 
     body is a foreign representative as defined in section 101, 
     the court is entitled to so presume.
       ``(b) The court is entitled to presume that documents 
     submitted in support of the petition for recognition are 
     authentic, whether or not they have been legalized.
       ``(c) In the absence of evidence to the contrary, the 
     debtor's registered office, or habitual residence in the case 
     of an individual, is presumed to be the center of the 
     debtor's main interests.

     ``Sec. 1517. Order recognizing a foreign proceeding

       ``(a) Subject to section 1506, after notice and a hearing 
     an order recognizing a foreign proceeding shall be entered 
     if--
       ``(1) the foreign proceeding is a foreign main proceeding 
     or foreign nonmain proceeding within the meaning of section 
     1502;
       ``(2) the foreign representative applying for recognition 
     is a person or body as defined in section 101; and
       ``(3) the petition meets the requirements of section 1515.
       ``(b) The foreign proceeding shall be recognized--
       ``(1) as a foreign main proceeding if it is taking place in 
     the country where the debtor has the center of its main 
     interests; or
       ``(2) as a foreign nonmain proceeding if the debtor has an 
     establishment within the meaning of section 1502 in the 
     foreign country where the proceeding is pending.
       ``(c) A petition for recognition of a foreign proceeding 
     shall be decided upon at the earliest possible time. Entry of 
     an order recognizing a foreign proceeding shall constitute 
     recognition under this chapter.
       ``(d) The provisions of this subchapter do not prevent 
     modification or termination of recognition if it is shown 
     that the grounds for granting it were fully or partially 
     lacking or have ceased to exist, but in considering such 
     action the court shall give due weight to possible prejudice 
     to parties that have relied upon the granting of recognition. 
     The case under this chapter may be closed in the manner 
     prescribed for a case under section 350.

     ``Sec. 1518. Subsequent information

       ``After the petition for recognition of the foreign 
     proceeding is filed, the foreign representative shall file 
     with the court promptly a notice of change of status 
     concerning--
       ``(1) any substantial change in the status of the foreign 
     proceeding or the status of the foreign representative's 
     appointment; and
       ``(2) any other foreign proceeding regarding the debtor 
     that becomes known to the foreign representative.

     ``Sec. 1519. Relief that may be granted upon petition for 
       recognition of a foreign proceeding

       ``(a) Beginning on the date on which a petition for 
     recognition is filed and ending on the date on which the 
     petition is decided upon, the court may, at the request of 
     the foreign representative, where relief is urgently needed 
     to protect the assets of the debtor or the interests of the 
     creditors, grant relief of a provisional nature, including--
       ``(1) staying execution against the debtor's assets;
       ``(2) entrusting the administration or realization of all 
     or part of the debtor's assets located in the United States 
     to the foreign representative or another person authorized by 
     the court, including an examiner, in order to protect and 
     preserve the value of assets that, by their nature or because 
     of other circumstances, are perishable, susceptible to 
     devaluation, or otherwise in jeopardy; and
       ``(3) any relief referred to in paragraph (3), (4), or (7) 
     of section 1521(a).
       ``(b) Unless extended under section 1521(a)(6), the relief 
     granted under this section terminates when the petition for 
     recognition is decided upon.
       ``(c) It is a ground for denial of relief under this 
     section that such relief would interfere with the 
     administration of a foreign main proceeding.
       ``(d) The court may not enjoin a police or regulatory act 
     of a governmental unit, including a criminal action or 
     proceeding, under this section.
       ``(e) The standards, procedures, and limitations applicable 
     to an injunction shall apply to relief under this section.

     ``Sec. 1520. Effects of recognition of a foreign main 
       proceeding

       ``(a) Upon recognition of a foreign proceeding that is a 
     foreign main proceeding--
       ``(1) section 362 applies with respect to the debtor and 
     that property of the debtor that is within the territorial 
     jurisdiction of the United States;
       ``(2) a transfer, an encumbrance, or any other disposition 
     of an interest of the debtor in property within the 
     territorial jurisdiction of the United States is restrained 
     as and to the extent

[[Page S419]]

     that is provided for property of an estate under sections 
     363, 549, and 552; and
       ``(3) unless the court orders otherwise, the foreign 
     representative may operate the debtor's business and may 
     exercise the powers of a trustee under section 549, subject 
     to sections 363 and 552.
       ``(b) The scope, and the modification or termination, of 
     the stay and restraints referred to in subsection (a) are 
     subject to the exceptions and limitations provided in 
     subsections (b), (c), and (d) of section 362, subsections (b) 
     and (c) of section 363, and sections 552, 555 through 557, 
     559, and 560.
       ``(c) Subsection (a) does not affect the right to commence 
     individual actions or proceedings in a foreign country to the 
     extent necessary to preserve a claim against the debtor.
       ``(d) Subsection (a) does not affect the right of a foreign 
     representative or an entity to file a petition commencing a 
     case under this title or the right of any party to file 
     claims or take other proper actions in such a case.

     ``Sec. 1521. Relief that may be granted upon recognition of a 
       foreign proceeding

       ``(a) Upon recognition of a foreign proceeding, whether 
     main or nonmain, where necessary to effectuate the purpose of 
     this chapter and to protect the assets of the debtor or the 
     interests of the creditors, the court may, at the request of 
     the foreign representative, grant any appropriate relief, 
     including--
       ``(1) staying the commencement or continuation of 
     individual actions or individual proceedings concerning the 
     debtor's assets, rights, obligations or liabilities to the 
     extent the actions or proceedings have not been stayed under 
     section 1520(a);
       ``(2) staying execution against the debtor's assets to the 
     extent the execution has not been stayed under section 
     1520(a);
       ``(3) suspending the right to transfer, encumber or 
     otherwise dispose of any assets of the debtor to the extent 
     that right has not been suspended under section 1520(a);
       ``(4) providing for the examination of witnesses, the 
     taking of evidence or the delivery of information concerning 
     the debtor's assets, affairs, rights, obligations or 
     liabilities;
       ``(5) entrusting the administration or realization of all 
     or part of the debtor's assets within the territorial 
     jurisdiction of the United States to the foreign 
     representative or another person, including an examiner, 
     authorized by the court;
       ``(6) extending relief granted under section 1519(a); and
       ``(7) granting any additional relief that may be available 
     to a trustee, except for relief available under sections 522, 
     544, 545, 547, 548, 550, and 724(a).
       ``(b) Upon recognition of a foreign proceeding, whether 
     main or nonmain, the court may, at the request of the foreign 
     representative, entrust the distribution of all or part of 
     the debtor's assets located in the United States to the 
     foreign representative or another person, including an 
     examiner, authorized by the court, if the court is satisfied 
     that the interests of creditors in the United States are 
     sufficiently protected.
       ``(c) In granting relief under this section to a 
     representative of a foreign nonmain proceeding, the court 
     must be satisfied that the relief relates to assets that, 
     under the law of the United States, should be administered in 
     the foreign nonmain proceeding or concerns information 
     required in that proceeding.
       ``(d) The court may not enjoin a police or regulatory act 
     of a governmental unit, including a criminal action or 
     proceeding, under this section.
       ``(e) The standards, procedures, and limitations applicable 
     to an injunction shall apply to relief under paragraphs (1), 
     (2), (3), and (6) of subsection (a).

     ``Sec. 1522. Protection of creditors and other interested 
       persons

       ``(a) The court may grant relief under section 1519 or 
     1521, or may modify or terminate relief under subsection (c), 
     only if the interests of the creditors and other interested 
     entities, including the debtor, are sufficiently protected.
       ``(b) The court may subject relief granted under section 
     1519 or 1521, or the operation of the debtor's business under 
     section 1520(a)(2), to conditions that the court considers to 
     be appropriate, including the giving of security or the 
     filing of a bond.
       ``(c) The court may, at the request of the foreign 
     representative or an entity affected by relief granted under 
     section 1519 or 1521, or at its own motion, modify or 
     terminate the relief referred to in subsection (b).
       ``(d) Section 1104(d) shall apply to the appointment of an 
     examiner under this chapter. Any examiner shall comply with 
     the qualification requirements imposed on a trustee by 
     section 322.

     ``Sec. 1523. Actions to avoid acts detrimental to creditors

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

     ``Sec. 1524. Intervention by a foreign representative

       ``Upon recognition of a foreign proceeding, the foreign 
     representative may intervene in any proceedings in a State or 
     Federal court in the United States in which the debtor is a 
     party.

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

     ``Sec. 1525. Cooperation and direct communication between the 
       court and foreign courts or foreign representatives

       ``(a) Consistent with section 1501, the court shall 
     cooperate to the maximum extent possible with foreign courts 
     or foreign representatives, either directly or through the 
     trustee.
       ``(b) The court is entitled to communicate directly with, 
     or to request information or assistance directly from, 
     foreign courts or foreign representatives, subject to the 
     rights of parties in interest to notice and participation.

     ``Sec. 1526. Cooperation and direct communication between the 
       trustee and foreign courts or foreign representatives

       ``(a) Consistent with section 1501, the trustee or other 
     person, including an examiner, authorized by the court, 
     shall, subject to the supervision of the court, cooperate to 
     the maximum extent possible with foreign courts or foreign 
     representatives.
       ``(b) The trustee or other person, including an examiner, 
     authorized by the court is entitled, subject to the 
     supervision of the court, to communicate directly with 
     foreign courts or foreign representatives.

     ``Sec. 1527. Forms of cooperation

       ``Cooperation referred to in sections 1525 and 1526 may be 
     implemented by any appropriate means, including--
       ``(1) appointment of a person or body, including an 
     examiner, to act at the direction of the court;
       ``(2) communication of information by any means considered 
     appropriate by the court;
       ``(3) coordination of the administration and supervision of 
     the debtor's assets and affairs;
       ``(4) approval or implementation of agreements concerning 
     the coordination of proceedings; and
       ``(5) coordination of concurrent proceedings regarding the 
     same debtor.

                 ``SUBCHAPTER V--CONCURRENT PROCEEDINGS

     ``Sec. 1528. Commencement of a case under this title after 
       recognition of a foreign main proceeding

       ``After recognition of a foreign main proceeding, a case 
     under another chapter of this title may be commenced only if 
     the debtor has assets in the United States. The effects of 
     such case shall be restricted to the assets of the debtor 
     that are within the territorial jurisdiction of the United 
     States and, to the extent necessary to implement cooperation 
     and coordination under sections 1525, 1526, and 1527, to 
     other assets of the debtor that are within the jurisdiction 
     of the court under sections 541(a), and 1334(e) of title 28, 
     to the extent that such other assets are not subject to the 
     jurisdiction and control of a foreign proceeding that has 
     been recognized under this chapter.

     ``Sec. 1529. Coordination of a case under this title and a 
       foreign proceeding

       ``In any case in which a foreign proceeding and a case 
     under another chapter of this title are taking place 
     concurrently regarding the same debtor, the court shall seek 
     cooperation and coordination under sections 1525, 1526, and 
     1527, and the following shall apply:
       ``(1) If the case in the United States is taking place at 
     the time the petition for recognition of the foreign 
     proceeding is filed--
       ``(A) any relief granted under sections 1519 or 1521 must 
     be consistent with the relief granted in the case in the 
     United States; and
       ``(B) even if the foreign proceeding is recognized as a 
     foreign main proceeding, section 1520 does not apply.
       ``(2) If a case in the United States under this title 
     commences after recognition, or after the filing of the 
     petition for recognition, of the foreign proceeding--
       ``(A) any relief in effect under sections 1519 or 1521 
     shall be reviewed by the court and shall be modified or 
     terminated if inconsistent with the case in the United 
     States; and
       ``(B) if the foreign proceeding is a foreign main 
     proceeding, the stay and suspension referred to in section 
     1520(a) shall be modified or terminated if inconsistent with 
     the relief granted in the case in the United States.
       ``(3) In granting, extending, or modifying relief granted 
     to a representative of a foreign nonmain proceeding, the 
     court must be satisfied that the relief relates to assets 
     that, under the law of the United States, should be 
     administered in the foreign nonmain proceeding or concerns 
     information required in that proceeding.
       ``(4) In achieving cooperation and coordination under 
     sections 1528 and 1529, the court may grant any of the relief 
     authorized under section 305.

     ``Sec. 1530. Coordination of more than 1 foreign proceeding

       ``In matters referred to in section 1501, with respect to 
     more than 1 foreign proceeding regarding the debtor, the 
     court shall seek cooperation and coordination under sections 
     1525, 1526, and 1527, and the following shall apply:
       ``(1) Any relief granted under section 1519 or 1521 to a 
     representative of a foreign nonmain proceeding after 
     recognition of a foreign main proceeding must be consistent 
     with the foreign main proceeding.
       ``(2) If a foreign main proceeding is recognized after 
     recognition, or after the filing of a petition for 
     recognition, of a foreign nonmain proceeding, any relief in 
     effect under section 1519 or 1521 shall be reviewed by the 
     court and shall be modified or terminated if inconsistent 
     with the foreign main proceeding.
       ``(3) If, after recognition of a foreign nonmain 
     proceeding, another foreign nonmain proceeding is recognized, 
     the court shall grant, modify, or terminate relief for the 
     purpose of facilitating coordination of the proceedings.

[[Page S420]]

     ``Sec. 1531. Presumption of insolvency based on recognition 
       of a foreign main proceeding

       ``In the absence of evidence to the contrary, recognition 
     of a foreign main proceeding is for the purpose of commencing 
     a proceeding under section 303, proof that the debtor is 
     generally not paying its debts as such debts become due.

     ``Sec. 1532. Rule of payment in concurrent proceedings

       ``Without prejudice to secured claims or rights in rem, a 
     creditor who has received payment with respect to its claim 
     in a foreign proceeding pursuant to a law relating to 
     insolvency may not receive a payment for the same claim in a 
     case under any other chapter of this title regarding the 
     debtor, so long as the payment to other creditors of the same 
     class is proportionately less than the payment the creditor 
     has already received.''.
       (b) Clerical Amendment.--The table of chapters for title 
     11, United States Code, is amended by inserting after the 
     item relating to chapter 13 the following:

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

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

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

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

       Section 304 of title 11, United States Code, is amended to 
     read as follows:

     ``Sec. 304. Cases ancillary to foreign proceedings

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

                TITLE IX--FINANCIAL CONTRACT PROVISIONS

     SEC. 901. BANKRUPTCY CODE AMENDMENTS.

       (a) Definitions of Forward Contract, Repurchase Agreement, 
     Securities Clearing Agency, Swap Agreement, Commodity 
     Contract, and Securities Contract.--Title 11, United States 
     Code, is amended--
       (1) in section 101--
       (A) in paragraph (25)--
       (i) by striking ``means a contract'' and inserting 
     ``means--
       ``(A) a contract'';
       (ii) by striking ``, or any combination thereof or option 
     thereon;'' and inserting ``, or any other similar 
     agreement;''; and
       (iii) by adding at the end the following:
       ``(B) a combination of agreements or transactions referred 
     to in subparagraphs (A) and (C);
       ``(C) an option to enter into an agreement or transaction 
     referred to in subparagraph (A) or (B);
       ``(D) a master netting agreement that provides for an 
     agreement or transaction referred to in subparagraph (A), 
     (B), or (C), together with all supplements to such master 
     netting agreement, without regard to whether such master 
     netting agreement provides for an agreement or transaction 
     that is not a forward contract under this paragraph, except 
     that such master netting agreement shall be considered to be 
     a forward contract under this paragraph only with respect to 
     each agreement or transaction under such master netting 
     agreement that is referred to in subparagraph (A), (B) or 
     (C); or
       ``(E) a security agreement or arrangement, or other credit 
     enhancement, directly pertaining to a contract, option, 
     agreement, or transaction referred to in subparagraph (A), 
     (B), (C), or (D), but not to exceed the actual value of such 
     contract, option, agreement, or transaction on the date of 
     the filing of the petition;'';
       (B) by striking paragraph (47) and inserting the following:
       ``(47) `repurchase agreement' and `reverse repurchase 
     agreement'--
       ``(A) mean--
       ``(i) an agreement, including related terms, which provides 
     for the transfer of--

       ``(I) a certificate of deposit, mortgage related security 
     (as defined in section 3 of the Securities Exchange Act of 
     1934), mortgage loan, interest in a mortgage related security 
     or mortgage loan, eligible bankers' acceptance, or qualified 
     foreign government security (defined for purposes of this 
     paragraph to mean a security that is a direct obligation of, 
     or that is fully guaranteed by, the central government of a 
     member of the Organization for Economic Cooperation and 
     Development); or
       ``(II) a security that is a direct obligation of, or that 
     is fully guaranteed by, the United States or an agency of the 
     United States against the transfer of funds by the transferee 
     of such certificate of deposit, eligible bankers' acceptance, 
     security, loan, or interest;

     with a simultaneous agreement by such transferee to transfer 
     to the transferor thereof a certificate of deposit, eligible 
     bankers' acceptance, security, loan, or interest of the kind 
     described in subclause (I) or (II), at a date certain that is 
     not later than 1 year after the date of the transferor's 
     transfer or on demand, against the transfer of funds;
       ``(ii) a combination of agreements or transactions referred 
     to in clauses (i) and (iii);
       ``(iii) an option to enter into an agreement or transaction 
     referred to in clause (i) or (ii); or
       ``(iv) a master netting agreement that provides for an 
     agreement or transaction referred to in clause (i), (ii), or 
     (iii), together with all supplements to such master netting 
     agreement, without regard to whether such master netting 
     agreement provides for an agreement or transaction that is 
     not a repurchase agreement under this subparagraph, except 
     that such master netting agreement shall be considered to be 
     a repurchase agreement under this subparagraph only with 
     respect to each agreement or transaction under such master 
     netting agreement that is referred to in clause (i), (ii), or 
     (iii); or
       ``(v) a security agreement or arrangement, or other credit 
     enhancement, directly pertaining to a contract referred to in 
     clause (i), (ii), (iii), or (iv), but not to exceed the 
     actual value of such contract on the date of the filing of 
     the petition; and
       ``(B) do not include a repurchase obligation under a 
     participation in a commercial mortgage loan;'';
       (C) in paragraph (48) by inserting ``, or exempt from such 
     registration under such section pursuant to an order of the 
     Securities and Exchange Commission'' after ``1934''; and
       (D) by striking paragraph (53B) and inserting the 
     following:
       ``(53B) `swap agreement'--
       ``(A) means--
       ``(i) an agreement, including the terms and conditions 
     incorporated by reference in such agreement, that is--

       ``(I) an interest rate swap, option, future, or forward 
     agreement, including a rate floor, rate cap, rate collar, 
     cross-currency rate swap, and basis swap;
       ``(II) a spot, same day-tomorrow, tomorrow-next, forward, 
     or other foreign exchange or precious metals agreement;
       ``(III) a currency swap, option, future, or forward 
     agreement;
       ``(IV) an equity index or an equity swap, option, future, 
     or forward agreement;
       ``(V) a debt index or a debt swap, option, future, or 
     forward agreement;
       ``(VI) a credit spread or a credit swap, option, future, or 
     forward agreement; or
       ``(VII) a commodity index or a commodity swap, option, 
     future, or forward agreement;

       ``(ii) an agreement or transaction that is similar to an 
     agreement or transaction referred to in clause (i) that--

       ``(I) is currently, or in the future becomes, regularly 
     entered into in the swap market (including terms and 
     conditions incorporated by reference therein); and
       ``(II) is a forward, swap, future, or option on a rate, 
     currency, commodity, equity security, or other equity 
     instrument, on a debt security or other debt instrument, or 
     on an economic index or measure of economic risk or value;

       ``(iii) a combination of agreements or transactions 
     referred to in clauses (i) and (ii);
       ``(iv) an option to enter into an agreement or transaction 
     referred to in this subparagraph;
       ``(v) a master netting agreement that provides for an 
     agreement or transaction referred to in clause (i), (ii), 
     (iii), or (iv), together with all supplements to such master 
     netting agreement and without regard to whether such master 
     netting agreement contains an agreement or transaction 
     described in any such clause, but only

[[Page S421]]

     with respect to each agreement or transaction referred to in 
     any such clause that is under such master netting agreement; 
     except that
       ``(B) the definition under subparagraph (A) is applicable 
     for purposes of this title only, and shall not be construed 
     or applied so as to challenge or affect the characterization, 
     definition, or treatment of any swap agreement under any 
     other statute, regulation, or rule, including the Securities 
     Act of 1933, the Securities Exchange Act of 1934, the Public 
     Utility Holding Company Act of 1935, the Trust Indenture Act 
     of 1939, the Investment Company Act of 1940, the Investment 
     Advisers Act of 1940, the Securities Investor Protection Act 
     of 1970, the Commodity Exchange Act, and the regulations 
     prescribed by the Securities and Exchange Commission or the 
     Commodity Futures Trading Commission.'';
       (2) in section 741, by striking paragraph (7) and inserting 
     the following:
       ``(7) `securities contract'--
       ``(A) means--
       ``(i) a contract for the purchase, sale, or loan of a 
     security, a mortgage loan or an interest in a mortgage loan, 
     a group or index of securities, or mortgage loans or 
     interests therein (including an interest therein or based on 
     the value thereof), or option on any of the foregoing, 
     including an option to purchase or sell any of the foregoing;
       ``(ii) an option entered into on a national securities 
     exchange relating to foreign currencies;
       ``(iii) the guarantee by or to a securities clearing agency 
     of a settlement of cash, securities, mortgage loans or 
     interests therein, group or index of securities, or mortgage 
     loans or interests therein (including any interest therein or 
     based on the value thereof), or option on any of the 
     foregoing, including an option to purchase or sell any of the 
     foregoing;
       ``(iv) a margin loan;
       ``(v) any other agreement or transaction that is similar to 
     an agreement or transaction referred to in this subparagraph;
       ``(vi) a combination of the agreements or transactions 
     referred to in this subparagraph;
       ``(vii) an option to enter into an agreement or transaction 
     referred to in this subparagraph;
       ``(viii) a master netting agreement that provides for an 
     agreement or transaction referred to in clause (i), (ii), 
     (iii), (iv), (v), (vi), or (vii), together with all 
     supplements to such master netting agreement, without regard 
     to whether such master netting agreement provides for an 
     agreement or transaction that is not a securities contract 
     under this subparagraph, except that such master netting 
     agreement shall be considered to be a securities contract 
     under this subparagraph only with respect to each agreement 
     or transaction under such master netting agreement that is 
     referred to in clause (i), (ii), (iii), (iv), (v), (vi), or 
     (vii); or
       ``(ix) a security agreement or arrangement, or other credit 
     enhancement, directly pertaining to a contract referred to in 
     this subparagraph, but not to exceed the actual value of such 
     contract on the date of the filing of the petition; and
       ``(B) does not include a purchase, sale, or repurchase 
     obligation under a participation in a commercial mortgage 
     loan;''; and
       (3) in section 761(4)--
       (A) by striking ``or'' at the end of subparagraph (D); and
       (B) by adding at the end the following:
       ``(F) any other agreement or transaction that is similar to 
     an agreement or transaction referred to in this paragraph;
       ``(G) a combination of the agreements or transactions 
     referred to in this paragraph;
       ``(H) an option to enter into an agreement or transaction 
     referred to in this paragraph;
       ``(I) a master netting agreement that provides for an 
     agreement or transaction referred to in subparagraph (A), 
     (B), (C), (D), (E), (F), (G), or (H), together with all 
     supplements to such master netting agreement, without regard 
     to whether such master netting agreement provides for an 
     agreement or transaction that is not a commodity contract 
     under this paragraph, except that such master netting 
     agreement shall be considered to be a commodity contract 
     under this paragraph only with respect to each agreement or 
     transaction under such master netting agreement that is 
     referred to in subparagraph (A), (B), (C), (D), (E), (F), 
     (G), or (H); or
       ``(J) a security agreement or arrangement, or other credit 
     enhancement, directly pertaining to a contract referred to in 
     this paragraph, but not to exceed the actual value of such 
     contract on the date of the filing of the petition.''.
       (b) Definitions of Financial Institution, Financial 
     Participant, and Forward Contract Merchant.--Section 101 of 
     title 11, United States Code, as amended by section 802(b) of 
     this Act, is amended--
       (1) by striking paragraph (22) and inserting the following:
       ``(22) `financial institution' means--
       ``(A)(i) a Federal reserve bank, or an entity that is a 
     commercial or savings bank, industrial savings bank, savings 
     and loan association, trust company, or receiver or 
     conservator for such entity; and
       ``(ii) if such Federal reserve bank, receiver, or 
     conservator or entity is acting as agent or custodian for a 
     customer in connection with a securities contract, as defined 
     in section 741, such customer; or
       ``(B) in connection with a securities contract, as defined 
     in section 741 of this title, an investment company 
     registered under the Investment Company Act of 1940;'';
       (2) by inserting after paragraph (22) the following:
       ``(22A) `financial participant' means an entity that is a 
     party to a securities contract, commodity contract or forward 
     contract, or on the date of the filing of the petition, has a 
     commodity contract (as defined in section 761) with the 
     debtor or any other entity (other than an affiliate) of a 
     total gross dollar value of not less than $1,000,000,000 in 
     notional or actual principal amount outstanding on any day 
     during the previous 15-month period, or has gross mark-to-
     market positions of not less than $100,000,000 (aggregated 
     across counterparties) in any such agreement or transaction 
     with the debtor or any other entity (other than an affiliate) 
     on any day during the previous 15-month period;''; and
       (3) by striking paragraph (26) and inserting the following:
       ``(26) `forward contract merchant' means a Federal reserve 
     bank, or an entity, the business of which consists in whole 
     or in part of entering into forward contracts as or with 
     merchants or in a commodity, as defined or in section 761, or 
     any similar good, article, service, right, or interest that 
     is presently or in the future becomes the subject of dealing 
     or in the forward contract trade;''.
       (c) Definition of Master Netting Agreement and Master 
     Netting Agreement Participant.--Section 101 of title 11, 
     United States Code, as amended by subsection (b) of this 
     section, is amended by inserting after paragraph (38) the 
     following new paragraphs:
       ``(38A) the term `master netting agreement'--
       ``(A) means an agreement providing for the exercise of 
     rights, including rights of netting, setoff, liquidation, 
     termination, acceleration, or closeout, under or in 
     connection with 1 or more contracts that are described in any 
     1 or more of paragraphs (1) through (5) of section 561(a), or 
     any security agreement or arrangement or other credit 
     enhancement related to 1 or more of the foregoing; except 
     that
       ``(B) if a master netting agreement contains provisions 
     relating to agreements or transactions that are not contracts 
     described in paragraphs (1) through (5) of section 561(a), 
     the master netting agreement shall be deemed to be a master 
     netting agreement only with respect to those agreements or 
     transactions that are described in any 1 or more of the 
     paragraphs (1) through (5) of section 561(a);
       ``(38B) the term `master netting agreement participant' 
     means an entity that, at any time before the filing of the 
     petition, is a party to an outstanding master netting 
     agreement with the debtor;''.
       (d) Swap Agreements, Securities Contracts, Commodity 
     Contracts, Forward Contracts, Repurchase Agreements, and 
     Master Netting Agreements Under the Automatic Stay.--
       (1) In general.--Section 362(b) of title 11, United States 
     Code, as amended by section 718 of this Act, is amended--
       (A) in paragraph (6), by inserting ``, pledged to, and 
     under the control of,'' after ``held by'';
       (B) in paragraph (7), by inserting ``, pledged to, and 
     under the control of,'' after ``held by'';
       (C) by striking paragraph (17) and inserting the following:
       ``(17) under subsection (a), of the setoff by a swap 
     participant of a mutual debt and claim under or in connection 
     with a swap agreement that constitutes the setoff of a claim 
     against the debtor for a payment or transfer due from the 
     debtor under or in connection with a swap agreement against a 
     payment due to the debtor from the swap participant under or 
     in connection with a swap agreement or against cash, 
     securities, or other property held by, pledged to, and under 
     the control of, or due from such swap participant to 
     guarantee, secure, or settle a swap agreement;'';
       (D) in paragraph (26), by striking ``or'' at the end;
       (E) in paragraph (27), by striking the period at the end 
     and inserting ``; or''; and
       (F) by inserting after paragraph (27) the following:
       ``(28) under subsection (a), of the setoff by a master 
     netting agreement participant of a mutual debt and claim 
     under or in connection with 1 or more master netting 
     agreements or any contract or agreement subject to such 
     agreements that constitutes the setoff of a claim against the 
     debtor for any payment or other transfer of property due from 
     the debtor under or in connection with such agreements or any 
     contract or agreement subject to such agreements against any 
     payment due to the debtor from such master netting agreement 
     participant under or in connection with such agreements or 
     any contract or agreement subject to such agreements or 
     against cash, securities, or other property held by, pledged 
     or and under the control of, or due from such master netting 
     agreement participant to margin, guarantee, secure, or settle 
     such agreements or any contract or agreement subject to such 
     agreements, to the extent such participant is eligible to 
     exercise such offset rights under paragraph (6), (7), or (17) 
     for each individual contract covered by the master netting 
     agreement in issue.''.
       (2) Limitation.--Section 362 of title 11, United States 
     Code, as amended by section 441(2) of this Act, is amended by 
     adding at the end the following:
       ``(l) Limitation.--The exercise of rights not subject to 
     the stay arising under subsection (a) pursuant to paragraph 
     (6), (7), or (17) of subsection (b) shall not be stayed by an 
     order of a court or administrative agency in any proceeding 
     under this title.''.
       (e) Limitation of Avoidance Powers Under Master Netting 
     Agreement.--Section 546 of title 11, United States Code, is 
     amended--
       (1) in subsection (g) (as added by section 103 of Public 
     Law 101-311 (104 Stat. 267 et seq.))--
       (A) by striking ``under a swap agreement''; and
       (B) by striking ``in connection with a swap agreement'' and 
     inserting ``under or in connection with any swap agreement''; 
     and
       (2) by inserting before subsection (i) (as redesignated by 
     section 407 of this Act) the following new subsection:
       ``(h) Notwithstanding sections 544, 545, 547, 548(a)(2)(B), 
     and 548(b), the trustee may not avoid a transfer made by or 
     to a master netting

[[Page S422]]

     agreement participant under or in connection with any master 
     netting agreement or any individual contract covered thereby 
     that is made before the commencement of the case, and except 
     to the extent that the trustee could otherwise avoid such a 
     transfer made under an individual contract covered by such 
     master netting agreement (except under section 
     548(a)(1)(A)).''.
       (f) Fraudulent Transfers of Master Netting Agreements.--
     Section 548(d)(2) of title 11, United States Code, is 
     amended--
       (1) in subparagraph (C), by striking ``and'';
       (2) in subparagraph (D), by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(E) a master netting agreement participant that receives 
     a transfer in connection with a master netting agreement or 
     any individual contract covered thereby takes for value to 
     the extent of such transfer, except, with respect to a 
     transfer under any individual contract covered thereby, to 
     the extent that such master netting agreement participant 
     otherwise did not take (or is otherwise not deemed to have 
     taken) such transfer for value.''.
       (g) Termination or Acceleration of Securities Contracts.--
     Section 555 of title 11, United States Code, is amended--
       (1) by striking the section heading and inserting the 
     following:

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

     and
       (2) in the first sentence, by striking ``liquidation'' and 
     inserting ``liquidation, termination, or acceleration''.
       (h) Termination or Acceleration of Commodities or Forward 
     Contracts.--Section 556 of title 11, United States Code, is 
     amended--
       (1) by striking the section heading and inserting the 
     following:

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

     and
       (2) in the first sentence, by striking ``liquidation'' and 
     inserting ``liquidation, termination, or acceleration''.
       (i) Termination or Acceleration of Repurchase Agreements.--
     Section 559 of title 11, United States Code, is amended--
       (1) by striking the section heading and inserting the 
     following:

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

     and
       (2) in the first sentence, by striking ``liquidation'' and 
     inserting ``liquidation, termination, or acceleration''.
       (j) Liquidation, Termination, or Acceleration of Swap 
     Agreements.--Section 560 of title 11, United States Code, is 
     amended--
       (1) by striking the section heading and inserting 
     following:

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

       (2) in the first sentence, by striking ``termination of a 
     swap agreement'' and inserting ``liquidation, termination, or 
     acceleration of a swap agreement''; and
       (3) by striking ``in connection with any swap agreement'' 
     and inserting ``in connection with the termination, 
     liquidation, or acceleration of a swap agreement''.
       (k) Liquidation, Termination, Acceleration, or Offset Under 
     a Master Netting Agreement and Across Contracts.--Title 11, 
     United States Code, is amended by inserting after section 560 
     the following:

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

       ``(a) Subject to subsection (b), the exercise of any 
     contractual right, because of a condition of the kind 
     specified in section 365(e)(1), to cause the termination, 
     liquidation, or acceleration of or to offset or net 
     termination values, payment amounts or other transfer 
     obligations arising under or in connection with 1 or more (or 
     the termination, liquidation, or acceleration of 1 or more)--
       ``(1) securities contracts, as defined in section 741(7);
       ``(2) commodity contracts, as defined in section 761(4);
       ``(3) forward contracts;
       ``(4) repurchase agreements;
       ``(5) swap agreements; or
       ``(6) master netting agreements,
     shall not be stayed, avoided, or otherwise limited by 
     operation of any provision of this title or by any order of a 
     court or administrative agency in any proceeding under this 
     title.
       ``(b)(1) A party may exercise a contractual right described 
     in subsection (a) to terminate, liquidate, or accelerate only 
     to the extent that such party could exercise such a right 
     under section 555, 556, 559, or 560 for each individual 
     contract covered by the master netting agreement in issue.
       ``(2) If a debtor is a commodity broker subject to 
     subchapter IV of chapter 7--
       ``(A) a party may not net or offset an obligation to the 
     debtor arising under, or in connection with, a commodity 
     contract against any claim arising under, or in connection 
     with, other instruments, contracts, or agreements listed in 
     subsection (a), except to the extent that the party has 
     positive net equity in the commodity accounts at the debtor, 
     as calculated under such subchapter IV; and
       ``(B) another commodity broker may not net or offset an 
     obligation to the debtor arising under, or in connection 
     with, a commodity contract entered into or held on behalf of 
     a customer of the debtor against any claim arising under, or 
     in connection with, other instruments, contracts, or 
     agreements referred to in subsection (a).
       ``(c) As used in this section, the term `contractual right' 
     includes a right set forth in a rule or bylaw of a national 
     securities exchange, a national securities association, or a 
     securities clearing agency, a right set forth in a bylaw of a 
     clearing organization or contract market or in a resolution 
     of the governing board thereof, and a right, whether or not 
     evidenced in writing, arising under common law, under law 
     merchant, or by reason of normal business practice.''.
       (l) Ancillary Proceedings.--Section 304 of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(d) Any provisions of this title relating to securities 
     contracts, commodity contracts, forward contracts, repurchase 
     agreements, swap agreements, or master netting agreements 
     shall apply in a case ancillary to a foreign proceeding under 
     this section or any other section of this title, so that 
     enforcement of contractual provisions of such contracts and 
     agreements in accordance with their terms--
       ``(1) shall not be stayed or otherwise limited by--
       ``(A) operation of any provision of this title; or
       ``(B) order of a court in any case under this title;
       ``(2) shall limit avoidance powers to the same extent as in 
     a proceeding under chapter 7 or 11; and
       ``(3) shall not be limited based on the presence or absence 
     of assets of the debtor in the United States.''.
       (m) Commodity Broker Liquidations.--Title 11, United States 
     Code, is amended by inserting after section 766 the 
     following:

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

       ``Notwithstanding any other provision of this title, the 
     exercise of rights by a forward contract merchant, commodity 
     broker, stockbroker, financial institution, securities 
     clearing agency, swap participant, repo participant, or 
     master netting agreement participant under this title shall 
     not affect the priority of any unsecured claim it may have 
     after the exercise of such rights.''.
       (n) Stockbroker Liquidations.--Title 11, United States 
     Code, is amended by inserting after section 752 the 
     following:

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

       ``Notwithstanding any other provision of this title, the 
     exercise of rights by a forward contract merchant, commodity 
     broker, stockbroker, financial institution, securities 
     clearing agency, swap participant, repo participant, 
     financial participant, or master netting agreement 
     participant under this title shall not affect the priority of 
     any unsecured claim it may have after the exercise of such 
     rights.''.
       (o) Setoff.--Section 553 of title 11, United States Code, 
     is amended--
       (1) in subsection (a)(3)(C), by inserting ``(except for a 
     setoff of a kind described in section 362(b)(6), 362(b)(7), 
     362(b)(17), 362(b)(28), 555, 556, 559, or 560)'' before the 
     period; and
       (2) in subsection (b)(1), by striking ``362(b)(14),'' and 
     inserting ``362(b)(17), 362(b)(28), 555, 556, 559, 560,''.
       (p) Securities Contracts, Commodity Contracts, and Forward 
     Contracts.--Title 11, United States Code, is amended--
       (1) in section 362(b)(6), by striking ``financial 
     institutions,'' each place such term appears and inserting 
     ``financial institution, financial participant'';
       (2) in section 546(e), by inserting ``financial 
     participant'' after ``financial institution,'';
       (3) in section 548(d)(2)(B), by inserting ``financial 
     participant'' after ``financial institution,'';
       (4) in section 555--
       (A) by inserting ``financial participant'' after 
     ``financial institution,''; and
       (B) by inserting before the period ``, a right set forth in 
     a bylaw of a clearing organization or contract market or in a 
     resolution of the governing board thereof, and a right, 
     whether or not in writing, arising under common law, under 
     law merchant, or by reason of normal business practice''; and
       (5) in section 556, by inserting ``, financial 
     participant'' after ``commodity broker''.
       (q) Conforming Amendments.--Title 11, United States Code, 
     is amended--
       (1) in the table of sections for chapter 5--
       (A) by striking the items relating to sections 555 and 556 
     and inserting the following:

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

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

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

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


[[Page S423]]


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

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

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

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

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

     SEC. 902. DAMAGE MEASURE.

       (a) In General.--Title 11, United States Code, is amended--
       (1) by inserting after section 561 the following:

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

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

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

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

     SEC. 903. ASSET-BACKED SECURITIZATIONS.

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

     SEC. 904. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

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

       TITLE X--PROTECTION OF FAMILY FARMERS AND FAMILY FISHERMEN

     SEC. 1001. REENACTMENT OF CHAPTER 12.

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

     SEC. 1002. DEBT LIMIT INCREASE.

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

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

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

     SEC. 1004. CERTAIN CLAIMS OWED TO GOVERNMENTAL UNITS.

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

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

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

     SEC. 1006. FAMILY FISHERMEN.

       (a) Definitions.--Section 101 of title 11, United States 
     Code, is amended--
       (1) by inserting after paragraph (7) the following:
       ``(7A) `commercial fishing operation' includes--
       ``(A) the catching or harvesting of fish, shrimp, lobsters, 
     urchins, seaweed, shellfish, or other aquatic species or 
     products; and
       ``(B) for purposes of section 109 and chapter 12, 
     aquaculture activities consisting of raising for market any 
     species or product described in subparagraph (A);'';
       ``(7B) `commercial fishing vessel' means a vessel used by a 
     fisherman to carry out a commercial fishing operation;'';
       (2) by inserting after paragraph (19) the following:
       ``(19A) `family fisherman' means--
       ``(A) an individual or individual and spouse engaged in a 
     commercial fishing operation (including aquiculture for 
     purposes of chapter 12)--

[[Page S424]]

       ``(i) whose aggregate debts do not exceed $1,500,000 and 
     not less than 80 percent of whose aggregate noncontingent, 
     liquidated debts (excluding a debt for the principal 
     residence of such individual or such individual and spouse, 
     unless such debt arises out of a commercial fishing 
     operation), on the date the case is filed, arise out of a 
     commercial fishing operation owned or operated by such 
     individual or such individual and spouse; and
       ``(ii) who receive from such commercial fishing operation 
     more than 50 percent of such individual's or such 
     individual's and spouse's gross income for the taxable year 
     preceding the taxable year in which the case concerning such 
     individual or such individual and spouse was filed; or
       ``(B) a corporation or partnership--
       ``(i) in which more than 50 percent of the outstanding 
     stock or equity is held by--

       ``(I) 1 family that conducts the commercial fishing 
     operation; or
       ``(II) 1 family and the relatives of the members of such 
     family, and such family or such relatives conduct the 
     commercial fishing operation; and

       ``(ii)(I) more than 80 percent of the value of its assets 
     consists of assets related to the commercial fishing 
     operation;
       ``(II) its aggregate debts do not exceed $1,500,000 and not 
     less than 80 percent of its aggregate noncontingent, 
     liquidated debts (excluding a debt for 1 dwelling which is 
     owned by such corporation or partnership and which a 
     shareholder or partner maintains as a principal residence, 
     unless such debt arises out of a commercial fishing 
     operation), on the date the case is filed, arise out of a 
     commercial fishing operation owned or operated by such 
     corporation or such partnership; and
       ``(III) if such corporation issues stock, such stock is not 
     publicly traded;''; and
       (3) by inserting after paragraph (19A) the following:
       ``(19B) `family fisherman with regular annual income' means 
     a family fisherman whose annual income is sufficiently stable 
     and regular to enable such family fisherman to make payments 
     under a plan under chapter 12 of this title;''.
       (b) Who May Be a Debtor.--Section 109(f) of title 11, 
     United States Code, is amended by inserting ``or family 
     fisherman'' after ``family farmer''.
       (c)  Chapter 12.--Chapter 12 of title 11, United States 
     Code, is amended--
       (1) in the chapter heading, by inserting ``OR FISHERMAN'' 
     after ``FAMILY FARMER'';
       (2) in section 1201, by adding at the end the following:
       ``(e)(1) Notwithstanding any other provision of law, for 
     purposes of this subsection, a guarantor of a claim of a 
     creditor under this section shall be treated in the same 
     manner as a creditor with respect to the operation of a stay 
     under this section.
       ``(2) For purposes of a claim that arises from the 
     ownership or operation of a commercial fishing operation, a 
     co-maker of a loan made by a creditor under this section 
     shall be treated in the same manner as a creditor with 
     respect to the operation of a stay under this section.'';
       (3) in section 1203, by inserting ``or commercial fishing 
     operation'' after ``farm'';
       (4) in section 1206, by striking ``if the property is 
     farmland or farm equipment'' and inserting ``if the property 
     is farmland, farm equipment, or property of a commercial 
     fishing operation (including a commercial fishing vessel)''; 
     and
       (5) by adding at the end the following:

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

       ``(a)(1) Notwithstanding any other provision of law, except 
     as provided in subsection (c), with respect to any commercial 
     fishing vessel of a family fisherman, the debts of that 
     family fisherman shall be treated in the manner prescribed in 
     paragraph (2).
       ``(2)(A) For purposes of this chapter, a claim for a lien 
     described in subsection (b) for a commercial fishing vessel 
     of a family fisherman that could, but for this subsection, be 
     subject to a lien under otherwise applicable maritime law, 
     shall be treated as an unsecured claim.
       ``(B) Subparagraph (A) applies to a claim for a lien 
     resulting from a debt of a family fisherman incurred on or 
     after the date of enactment of this chapter.
       ``(b) A lien described in this subsection is--
       ``(1) a maritime lien under subchapter III of chapter 313 
     of title 46, United States Code, without regard to whether 
     that lien is recorded under section 31343 of title 46, United 
     States Code; or
       ``(2) a lien under applicable State law (or the law of a 
     political subdivision thereof).
       ``(c) Subsection (a) shall not apply to--
       ``(1) a claim made by a member of a crew or a seaman 
     including a claim made for--
       ``(A) wages, maintenance, or cure; or
       ``(B) personal injury; or
       ``(2) a preferred ship mortgage that has been perfected 
     under subchapter II of chapter 313 of title 46, United States 
     Code.
       ``(d) For purposes of this chapter, a mortgage described in 
     subsection (c)(2) shall be treated as a secured claim.''.
       (d) Clerical Amendments.--
       (1) Table of chapters.--In the table of chapters for title 
     11, United States Code, the item relating to chapter 12, is 
     amended to read as follows:

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

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

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

              TITLE XI--HEALTH CARE AND EMPLOYEE BENEFITS

     SEC. 1101. DEFINITIONS.

       (a) Health Care Business Defined.--Section 101 of title 11, 
     United States Code, as amended by section 1003(a) of this 
     Act, is amended--
       (1) by redesignating paragraph (27A) as paragraph (27B); 
     and
       (2) inserting after paragraph (27) the following:
       ``(27A) `health care business'--
       ``(A) means any public or private entity (without regard to 
     whether that entity is organized for profit or not for 
     profit) that is primarily engaged in offering to the general 
     public facilities and services for--
       ``(i) the diagnosis or treatment of injury, deformity, or 
     disease; and
       ``(ii) surgical, drug treatment, psychiatric or obstetric 
     care; and
       ``(B) includes--
       ``(i) any--

       ``(I) general or specialized hospital;
       ``(II) ancillary ambulatory, emergency, or surgical 
     treatment facility;
       ``(III) hospice;
       ``(IV) home health agency; and
       ``(V) other health care institution that is similar to an 
     entity referred to in subclause (I), (II), (III), or (IV); 
     and

       ``(ii) any long-term care facility, including any--

       ``(I) skilled nursing facility;
       ``(II) intermediate care facility;
       ``(III) assisted living facility;
       ``(IV) home for the aged;
       ``(V) domiciliary care facility; and
       ``(VI) health care institution that is related to a 
     facility referred to in subclause (I), (II), (III), (IV), or 
     (V), if that institution is primarily engaged in offering 
     room, board, laundry, or personal assistance with activities 
     of daily living and incidentals to activities of daily 
     living;''.

       (b) Patient Defined.--Section 101 of title 11, United 
     States Code, as amended by subsection (a) of this section, is 
     amended by inserting after paragraph (40) the following:
       ``(40A) `patient' means any person who obtains or receives 
     services from a health care business;''.
       (c) Patient Records Defined.--Section 101 of title 11, 
     United States Code, as amended by subsection (b) of this 
     section, is amended by inserting after paragraph (40A) the 
     following:
       ``(40B) `patient records' means any written document 
     relating to a patient or a record recorded in a magnetic, 
     optical, or other form of electronic medium;''.
       (d) Rule of Construction.--The amendments made by 
     subsection (a) of this section shall not affect the 
     interpretation of section 109(b) of title 11, United States 
     Code.

     SEC. 1102. DISPOSAL OF PATIENT RECORDS.

       (a) In General.--Subchapter III of chapter 3 of title 11, 
     United States Code, is amended by adding at the end the 
     following:

     ``Sec. 351. Disposal of patient records

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

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

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

       Section 503(b) of title 11, United States Code, is 
     amended--
       (1) in paragraph (5), by striking ``and'' at the end;
       (2) in paragraph (6), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(7) the actual, necessary costs and expenses of closing a 
     health care business incurred by a trustee or by a Federal 
     agency (as that term is

[[Page S425]]

     defined in section 551(1) of title 5) or a department or 
     agency of a State or political subdivision thereof, including 
     any cost or expense incurred--
       ``(A) in disposing of patient records in accordance with 
     section 351; or
       ``(B) in connection with transferring patients from the 
     health care business that is in the process of being closed 
     to another health care business.''.

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

       (a) In General.--
       (1) Appointment of ombudsman.--Subchapter II of chapter 3 
     of title 11, United States Code, is amended by inserting 
     after section 331 the following:

     ``Sec. 332. Appointment of ombudsman

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

``332. Appointment of ombudsman.''.

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

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

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

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

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

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

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

       TITLE XII--AMENDMENTS TO FAIR LABOR STANDARDS ACT OF 1938

     SEC. 1201. MINIMUM WAGE.

       Section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 206(a)(1)) is amended to read as follows:
       ``(1) except as otherwise provided in this section, not 
     less than--
       ``(A) $5.15 an hour beginning September 1, 1997,
       ``(B) $5.50 an hour during the year beginning March 1, 
     2000,
       ``(C) $5.85 an hour during the year beginning March 1, 
     2001, and
       ``(D) $6.15 an hour during the year beginning March 1, 
     2002.''.

     SEC. 1202. REGULAR RATE FOR OVERTIME PURPOSES.

       Section 7(e) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 207(e)) is amended--
       (1) by inserting before the semicolon at the end of 
     paragraph (3) the following: ``; or (d) the payments are made 
     to reward an employee or group of employees for meeting or 
     exceeding the productivity, quality, efficiency, or sales 
     goals as specified in a gainsharing, incentive bonus, 
     commission, or performance contingent bonus plan''; and
       (2) by inserting after and below paragraph (7) the 
     following:
     ``A plan described in paragraph (3)(d) shall be in writing 
     and made available to employees, provide that the amount of 
     the payments to be made under the plan be based upon a 
     formula that is stated in the plan, and be established and 
     maintained in good faith for the purpose of distributing to 
     employees additional remuneration over and above the wages 
     and salaries that are not dependent upon the existence of 
     such plan or payments made pursuant to such plan.''.

                         TITLE XIII--TAX RELIEF

     SEC. 1300. AMENDMENT OF 1986 CODE.

       Except as otherwise expressly provided, whenever in this 
     title an amendment or repeal is expressed in terms of an 
     amendment to, or repeal of, a section or other provision, the 
     reference shall be considered to be made to a section or 
     other provision of the Internal Revenue Code of 1986.

                 Subtitle A--Small Business Tax Relief

     SEC. 1301. INCREASE IN EXPENSING LIMITATION TO $30,000.

       (a) In General.--Paragraph (1) of section 179(b) (relating 
     to limitations) is amended to read as follows:
       ``(1) Dollar limitation.--The aggregate cost which may be 
     taken into account under subsection (a) for any taxable year 
     shall not exceed $30,000.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. 1302. REPEAL OF TEMPORARY UNEMPLOYMENT TAX.

       Section 3301 (relating to rate of unemployment tax) is 
     amended--
       (1) by striking ``2007'' in paragraph (1) and inserting 
     ``2000''; and
       (2) by striking ``2008'' in paragraph (2) and inserting 
     ``2001''.

     SEC. 1303. FULL DEDUCTION OF HEALTH INSURANCE COSTS FOR SELF-
                   EMPLOYED INDIVIDUALS.

       (a) In General.--Section 162(l)(1) (relating to allowance 
     of deduction) is amended to read as follows:
       ``(1) Allowance of deduction.--In the case of an individual 
     who is an employee within the meaning of section 401(c)(1), 
     there shall be allowed as a deduction under this section an 
     amount equal to the amount paid during the taxable year for 
     insurance which constitutes medical care for the taxpayer and 
     the taxpayer's spouse and dependents.''
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     1999.

     SEC. 1304. PERMANENT EXTENSION OF WORK OPPORTUNITY TAX 
                   CREDIT.

       (a) In General.--Section 51(c) (defining wages) is amended 
     by striking paragraph (4).
       (b) Effective Date.--The amendment made by this section 
     shall apply to individuals who begin work for the employer 
     after June 30, 1999.

     SEC. 1305. SMALL BUSINESSES ALLOWED INCREASED DEDUCTION FOR 
                   MEAL AND ENTERTAINMENT EXPENSES.

       (a) In General.--Subsection (n) of section 274 (relating to 
     only 50 percent of meal and entertainment expenses allowed as 
     deduction) is amended by adding at the end the following:
       ``(4) Special rule for small businesses.--
       ``(A) In general.--In the case of any taxpayer which is a 
     small business, paragraph (1) shall be applied by 
     substituting `the applicable percentage' for `50 percent'. 
     For purposes of the preceding sentence, the term `applicable 
     percentage' means 55 percent in the case of taxable years 
     beginning in 2001, increased (but not above 80 percent) by 5 
     percentage points for each succeeding calendar year after 
     2001 with respect to taxable years beginning in each such 
     calendar year.
       ``(B) Small business.--For purposes of this paragraph, the 
     term `small business' means, with respect to expenses paid or 
     incurred during any taxable year--
       ``(i) any C corporation which meets the requirements of 
     section 55(e)(1) for such year, and
       ``(ii) any S corporation, partnership, or sole 
     proprietorship which would meet such requirements if it were 
     a C corporation.''
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2000.

[[Page S426]]

     Subtitle B--Deduction for Health and Long-Term Care Insurance

     SEC. 1311. DEDUCTION FOR HEALTH AND LONG-TERM CARE INSURANCE 
                   COSTS OF INDIVIDUALS NOT PARTICIPATING IN 
                   EMPLOYER-SUBSIDIZED HEALTH PLANS.

       (a) In General.--Part VII of subchapter B of chapter 1 is 
     amended by redesignating section 222 as section 223 and by 
     inserting after section 221 the following new section:

     ``SEC. 222. HEALTH AND LONG-TERM CARE INSURANCE COSTS.

       ``(a) In General.--In the case of an individual, there 
     shall be allowed as a deduction an amount equal to the 
     applicable percentage of the amount paid during the taxable 
     year for insurance which constitutes medical care for the 
     taxpayer and the taxpayer's spouse and dependents.
       ``(b) Applicable Percentage.--For purposes of subsection 
     (a), the applicable percentage shall be determined in 
     accordance with the following table:

``For taxable years beginning in calendarThe applicable percentage is--
                                                   2002, 2003, 25  2004

  2005.........................................................35  ....

  2006.........................................................65  ....

  2007 and thereafter...........................................100....

       ``(c) Limitation Based on Other Coverage.--
       ``(1) Coverage under certain subsidized employer plans.--
       ``(A) In general.--Subsection (a) shall not apply to any 
     taxpayer for any calendar month for which the taxpayer 
     participates in any health plan maintained by any employer of 
     the taxpayer or of the spouse of the taxpayer if 50 percent 
     or more of the cost of coverage under such plan (determined 
     under section 4980B and without regard to payments made with 
     respect to any coverage described in subsection (e)) is paid 
     or incurred by the employer.
       ``(B) Employer contributions to cafeteria plans, flexible 
     spending arrangements, and medical savings accounts.--
     Employer contributions to a cafeteria plan, a flexible 
     spending or similar arrangement, or a medical savings account 
     which are excluded from gross income under section 106 shall 
     be treated for purposes of subparagraph (A) as paid by the 
     employer.
       ``(C) Aggregation of plans of employer.--A health plan 
     which is not otherwise described in subparagraph (A) shall be 
     treated as described in such subparagraph if such plan would 
     be so described if all health plans of persons treated as a 
     single employer under subsection (b), (c), (m), or (o) of 
     section 414 were treated as one health plan.
       ``(D) Separate application to health insurance and long-
     term care insurance.--Subparagraphs (A) and (C) shall be 
     applied separately with respect to--
       ``(i) plans which include primarily coverage for qualified 
     long-term care services or are qualified long-term care 
     insurance contracts, and
       ``(ii) plans which do not include such coverage and are not 
     such contracts.
       ``(2) Coverage under certain federal programs.--
       ``(A) In general.--Subsection (a) shall not apply to any 
     amount paid for any coverage for an individual for any 
     calendar month if, as of the first day of such month, the 
     individual is covered under any medical care program 
     described in--
       ``(i) title XVIII, XIX, or XXI of the Social Security Act,
       ``(ii) chapter 55 of title 10, United States Code,
       ``(iii) chapter 17 of title 38, United States Code,
       ``(iv) chapter 89 of title 5, United States Code, or
       ``(v) the Indian Health Care Improvement Act.
       ``(B) Exceptions.--
       ``(i) Qualified long-term care.--Subparagraph (A) shall not 
     apply to amounts paid for coverage under a qualified long-
     term care insurance contract.
       ``(ii) Continuation coverage of fehbp.--Subparagraph 
     (A)(iv) shall not apply to coverage which is comparable to 
     continuation coverage under section 4980B.
       ``(d) Long-Term Care Deduction Limited to Qualified Long-
     Term Care Insurance Contracts.--In the case of a qualified 
     long-term care insurance contract, only eligible long-term 
     care premiums (as defined in section 213(d)(10)) may be taken 
     into account under subsection (a).
       ``(e) Deduction Not Available for Payment of Ancillary 
     Coverage Premiums.--Any amount paid as a premium for 
     insurance which provides for--
       ``(1) coverage for accidents, disability, dental care, 
     vision care, or a specified illness, or
       ``(2) making payments of a fixed amount per day (or other 
     period) by reason of being hospitalized,
     shall not be taken into account under subsection (a).
       ``(f ) Special Rules.--
       ``(1) Coordination with deduction for health insurance 
     costs of self-employed individuals.--The amount taken into 
     account by the taxpayer in computing the deduction under 
     section 162(l) shall not be taken into account under this 
     section.
       ``(2) Coordination with medical expense deduction.--The 
     amount taken into account by the taxpayer in computing the 
     deduction under this section shall not be taken into account 
     under section 213.
       ``(g) Regulations.--The Secretary shall prescribe such 
     regulations as may be appropriate to carry out this section, 
     including regulations requiring employers to report to their 
     employees and the Secretary such information as the Secretary 
     determines to be appropriate.''.
       (b) Deduction Allowed Whether or Not Taxpayer Itemizes 
     Other Deductions.--Subsection (a) of section 62 is amended by 
     inserting after paragraph (17) the following new item:
       ``(18) Health and long-term care insurance costs.--The 
     deduction allowed by section 222.''.
       (c) Clerical Amendment.--The table of sections for part VII 
     of subchapter B of chapter 1 is amended by striking the last 
     item and inserting the following new items:

``Sec. 222. Health and long-term care insurance costs.
``Sec. 223. Cross reference.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

                     Subtitle C--Pension Tax Relief

                       PART I--EXPANDING COVERAGE

     SEC. 1321. INCREASE IN BENEFIT AND CONTRIBUTION LIMITS.

       (a) Defined Benefit Plans.--
       (1) Dollar limit.--
       (A) Subparagraph (A) of section 415(b)(1) (relating to 
     limitation for defined benefit plans) is amended by striking 
     ``$90,000'' and inserting ``$160,000''.
       (B) Subparagraphs (C) and (D) of section 415(b)(2) are each 
     amended by striking ``$90,000'' each place it appears in the 
     headings and the text and inserting ``$160,000''.
       (C) Paragraph (7) of section 415(b) (relating to benefits 
     under certain collectively bargained plans) is amended by 
     striking ``the greater of $68,212 or one-half the amount 
     otherwise applicable for such year under paragraph (1)(A) for 
     `$90,000' '' and inserting ``one-half the amount otherwise 
     applicable for such year under paragraph (1)(A) for 
     `$160,000' ''.
       (2) Limit reduced when benefit begins before age 62.--
     Subparagraph (C) of section 415(b)(2) is amended by striking 
     ``the social security retirement age'' each place it appears 
     in the heading and text and inserting ``age 62''.
       (3) Limit increased when benefit begins after age 65.--
     Subparagraph (D) of section 415(b)(2) is amended by striking 
     ``the social security retirement age'' each place it appears 
     in the heading and text and inserting ``age 65''.
       (4) Cost-of-living adjustments.--Subsection (d) of section 
     415 (related to cost-of-living adjustments) is amended--
       (A) by striking ``$90,000'' in paragraph (1)(A) and 
     inserting ``$160,000'', and
       (B) in paragraph (3)(A)--
       (i) by striking ``$90,000'' in the heading and inserting 
     ``$160,000'', and
       (ii) by striking ``October 1, 1986'' and inserting ``July 
     1, 2000''.
       (5) Conforming amendment.--Section 415(b)(2) is amended by 
     striking subparagraph (F).
       (b) Defined Contribution Plans.--
       (1) Dollar limit.--Subparagraph (A) of section 415(c)(1) 
     (relating to limitation for defined contribution plans) is 
     amended by striking ``$30,000'' and inserting ``$40,000''.
       (2) Cost-of-living adjustments.--Subsection (d) of section 
     415 (related to cost-of-living adjustments) is amended--
       (A) by striking ``$30,000'' in paragraph (1)(C) and 
     inserting ``$40,000'', and
       (B) in paragraph (3)(D)--
       (i) by striking ``$30,000'' in the heading and inserting 
     ``$40,000'', and
       (ii) by striking ``October 1, 1993'' and inserting ``July 
     1, 2000''.
       (c) Qualified Trusts.--
       (1) Compensation limit.--Sections 401(a)(17), 404(l), 
     408(k), and 505(b)(7) are each amended by striking 
     ``$150,000'' each place it appears and inserting 
     ``$200,000''.
       (2) Base period and rounding of cost-of-living 
     adjustment.--Subparagraph (B) of section 401(a)(17) is 
     amended--
       (A) by striking ``October 1, 1993'' and inserting ``July 1, 
     2000'', and
       (B) by striking ``$10,000'' both places it appears and 
     inserting ``$5,000''.
       (d) Elective Deferrals.--
       (1) In general.--Paragraph (1) of section 402(g) (relating 
     to limitation on exclusion for elective deferrals) is amended 
     to read as follows:
       ``(1) In general.--
       ``(A) Limitation.--Notwithstanding subsections (e)(3) and 
     (h)(1)(B), the elective deferrals of any individual for any 
     taxable year shall be included in such individual's gross 
     income to the extent the amount of such deferrals for the 
     taxable year exceeds the applicable dollar amount.
       ``(B) Applicable dollar amount.--For purposes of 
     subparagraph (A), the applicable dollar amount shall be the 
     amount determined in accordance with the following table:

``For taxable years beginning in calendar The applicable dollar amount:
2001.............................................................11,000
2002.............................................................12,000
2003.............................................................13,000
2004.............................................................14,000
2005 or thereafter...........................................$15,000.''

       (2) Cost-of-living adjustment.--Paragraph (5) of section 
     402(g) is amended to read as follows:
       ``(5) Cost-of-living adjustment.--In the case of taxable 
     years beginning after December 31, 2005, the Secretary shall 
     adjust the $15,000 amount under paragraph (1)(B) at the same 
     time and in the same manner as under section 415(d), except 
     that the base period shall be the calendar quarter beginning 
     July 1, 2004, and any increase under this paragraph which is 
     not a multiple of $500 shall be rounded to the next lowest 
     multiple of $500.''.
       (3) Conforming amendments.--
       (A) Section 402(g) (relating to limitation on exclusion for 
     elective deferrals), as amended by paragraphs (1) and (2), is 
     further amended by striking paragraph (4) and redesignating 
     paragraphs (5), (6), (7), (8), and (9) as paragraphs (4), 
     (5), (6), (7), and (8), respectively.

[[Page S427]]

       (B) Paragraph (2) of section 457(c) is amended by striking 
     ``402(g)(8)(A)(iii)'' and inserting ``402(g)(7)(A)(iii)''.
       (C) Clause (iii) of section 501(c)(18)(D) is amended by 
     striking ``(other than paragraph (4) thereof)''.
       (e) Deferred Compensation Plans of State and Local 
     Governments and Tax-Exempt Organizations.--
       (1) In general.--Section 457 (relating to deferred 
     compensation plans of State and local governments and tax-
     exempt organizations) is amended--
       (A) in subsections (b)(2)(A) and (c)(1) by striking 
     ``$7,500'' each place it appears and inserting ``the 
     applicable dollar amount'', and
       (B) in subsection (b)(3)(A) by striking ``$15,000'' and 
     inserting ``twice the dollar amount in effect under 
     subsection (b)(2)(A)''.
       (2) Applicable dollar amount; cost-of-living adjustment.--
     Paragraph (15) of section 457(e) is amended to read as 
     follows:
       ``(15) Applicable dollar amount.--
       ``(A) In general.--The applicable dollar amount shall be 
     the amount determined in accordance with the following table:

``For taxable years beginning in calendar The applicable dollar amount:
  2001......................................................$11,000....

  2002......................................................$12,000....

  2003......................................................$13,000....

  2004......................................................$14,000....

  2005 or thereafter.......................................$15,000.....

       ``(B) Cost-of-living adjustments.--In the case of taxable 
     years beginning after December 31, 2005, the Secretary shall 
     adjust the $15,000 amount specified in the table in 
     subparagraph (A) at the same time and in the same manner as 
     under section 415(d), except that the base period shall be 
     the calendar quarter beginning July 1, 2004, and any increase 
     under this paragraph which is not a multiple of $500 shall be 
     rounded to the next lowest multiple of $500.''.
       (f ) Simple Retirement Accounts.--
       (1) Limitation.--Clause (ii) of section 408(p)(2)(A) 
     (relating to general rule for qualified salary reduction 
     arrangement) is amended by striking ``$6,000'' and inserting 
     ``the applicable dollar amount''.
       (2) Applicable dollar amount.--Subparagraph (E) of 
     408(p)(2) is amended to read as follows:
       ``(E) Applicable dollar amount; cost-of-living 
     adjustment.--
       ``(i) In general.--For purposes of subparagraph (A)(ii), 
     the applicable dollar amount shall be the amount determined 
     in accordance with the following table:

``For taxable years beginning in calendar The applicable dollar amount:
  2001.......................................................$7,000....

  2002.......................................................$8,000....

  2003.......................................................$9,000....

  2004 or thereafter.......................................$10,000.....

       ``(ii) Cost-of-living adjustment.--In the case of a year 
     beginning after December 31, 2004, the Secretary shall adjust 
     the $10,000 amount under clause (i) at the same time and in 
     the same manner as under section 415(d), except that the base 
     period taken into account shall be the calendar quarter 
     beginning July 1, 2003, and any increase under this 
     subparagraph which is not a multiple of $500 shall be rounded 
     to the next lower multiple of $500.''.
       (3) Conforming amendments.--
       (A) Clause (I) of section 401(k)(11)(B)(i) is amended by 
     striking ``$6,000'' and inserting ``the amount in effect 
     under section 408(p)(2)(A)(ii)''.
       (B) Section 401(k)(11) is amended by striking subparagraph 
     (E).
       (g) Rounding Rule Relating to Defined Benefit Plans and 
     Defined Contribution Plans.--Paragraph (4) of section 415(d) 
     is amended to read as follows:
       ``(4) Rounding.--
       ``(A) $160,000 amount.--Any increase under subparagraph (A) 
     of paragraph (1) which is not a multiple of $5,000 shall be 
     rounded to the next lowest multiple of $5,000.
       ``(B) $40,000 amount.--Any increase under subparagraph (C) 
     of paragraph (1) which is not a multiple of $1,000 shall be 
     rounded to the next lowest multiple of $1,000.''.
       (h) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2000.

     SEC. 1322. PLAN LOANS FOR SUBCHAPTER S OWNERS, PARTNERS, AND 
                   SOLE PROPRIETORS.

       (a) Amendment to 1986 Code.--Subparagraph (B) of section 
     4975(f )(6) (relating to exemptions not to apply to certain 
     transactions) is amended by adding at the end the following 
     new clause:
       ``(iii) Loan exception.--For purposes of subparagraph 
     (A)(i), the term `owner-employee' shall only include a person 
     described in subclause (II) or (III) of clause (i).''.
       (b) Amendment to ERISA.--Section 408(d)(2) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1108(d)(2)) 
     is amended by adding at the end the following new 
     subparagraph:
       ``(C) For purposes of paragraph (1)(A), the term `owner-
     employee' shall only include a person described in clause 
     (ii) or (iii) of subparagraph (A).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to loans made after December 31, 2000.

     SEC. 1323. MODIFICATION OF TOP-HEAVY RULES.

       (a) Simplification of Definition of Key Employee.--
       (1) In general.--Section 416(i)(1)(A) (defining key 
     employee) is amended--
       (A) by striking ``or any of the 4 preceding plan years'' in 
     the matter preceding clause (i),
       (B) by striking clause (i) and inserting the following:
       ``(i) an officer of the employer having an annual 
     compensation greater than $150,000,'',
       (C) by striking clause (ii) and redesignating clauses (iii) 
     and (iv) as clauses (ii) and (iii), respectively, and
       (D) by striking the second sentence in the matter following 
     clause (iii), as redesignated by subparagraph (C).
       (2) Conforming amendment.--Section 416(i)(1)(B)(iii) is 
     amended by striking ``and subparagraph (A)(ii)''.
       (b) Matching Contributions Taken Into Account for Minimum 
     Contribution Requirements.--Section 416(c)(2)(A) (relating to 
     defined contribution plans) is amended by adding at the end 
     the following: ``Employer matching contributions (as defined 
     in section 401(m)(4)(A)) shall be taken into account for 
     purposes of this subparagraph.''.
       (c) Distributions During Last Year Before Determination 
     Date Taken Into Account.--
       (1) In general.--Paragraph (3) of section 416(g) is amended 
     to read as follows:
       ``(3) Distributions during last year before determination 
     date taken into account.--
       ``(A) In general.--For purposes of determining--
       ``(i) the present value of the cumulative accrued benefit 
     for any employee, or
       ``(ii) the amount of the account of any employee,

     such present value or amount shall be increased by the 
     aggregate distributions made with respect to such employee 
     under the plan during the 1-year period ending on the 
     determination date. The preceding sentence shall also apply 
     to distributions under a terminated plan which if it had not 
     been terminated would have been required to be included in an 
     aggregation group.
       ``(B) 5-year period in case of in-service distribution.--In 
     the case of any distribution made for a reason other than 
     separation from service, death, or disability, subparagraph 
     (A) shall be applied by substituting `5-year period' for `1-
     year period'.''.
       (2) Benefits not taken into account.--Subparagraph (E) of 
     section 416(g)(4) is amended--
       (A) by striking ``last 5 years'' in the heading and 
     inserting ``last year before determination date'', and
       (B) by striking ``5-year period'' and inserting ``1-year 
     period''.
       (d) Definition of Top-Heavy Plans.--Paragraph (4) of 
     section 416(g) (relating to other special rules for top-heavy 
     plans) is amended by adding at the end the following new 
     subparagraph:
       ``(H) Cash or deferred arrangements using alternative 
     methods of meeting nondiscrimination requirements.--The term 
     `top-heavy plan' shall not include a plan which consists 
     solely of--
       ``(i) a cash or deferred arrangement which meets the 
     requirements of section 401(k)(12), and
       ``(ii) matching contributions with respect to which the 
     requirements of section 401(m)(11) are met.

     If, but for this subparagraph, a plan would be treated as a 
     top-heavy plan because it is a member of an aggregation group 
     which is a top-heavy group, contributions under the plan may 
     be taken into account in determining whether any other plan 
     in the group meets the requirements of subsection (c)(2).''.
       (e) Frozen Plan Exempt From Minimum Benefit Requirement.--
     Subparagraph (C) of section 416(c)(1) (relating to defined 
     benefit plans) is amended--
       (A) by striking ``clause (ii)'' in clause (i) and inserting 
     ``clause (ii) or (iii)'', and
       (B) by adding at the end the following:
       ``(iii) Exception for frozen plan.--For purposes of 
     determining an employee's years of service with the employer, 
     any service with the employer shall be disregarded to the 
     extent that such service occurs during a plan year when the 
     plan benefits (within the meaning of section 410(b)) no 
     employee or former employee.''.
       (f ) Elimination of Family Attribution.--Section 
     416(i)(1)(B) (defining 5-percent owner) is amended by adding 
     at the end the following new clause:
       ``(iv) Family attribution disregarded.--Solely for purposes 
     of applying this paragraph (and not for purposes of any 
     provision of this title which incorporates by reference the 
     definition of a key employee or 5-percent owner under this 
     paragraph), section 318 shall be applied without regard to 
     subsection (a)(1) thereof in determining whether any person 
     is a 5-percent owner.''.
       (g) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2000.

     SEC. 1324. ELECTIVE DEFERRALS NOT TAKEN INTO ACCOUNT FOR 
                   PURPOSES OF DEDUCTION LIMITS.

       (a) In General.--Section 404 (relating to deduction for 
     contributions of an employer to an employees' trust or 
     annuity plan and compensation under a deferred payment plan) 
     is amended by adding at the end the following new subsection:
       ``(n) Elective Deferrals Not Taken Into Account for 
     Purposes of Deduction Limits.--Elective deferrals (as defined 
     in section 402(g)(3)) shall not be subject to any limitation 
     contained in paragraph (3), (7), or (9) of subsection (a), 
     and such elective deferrals shall not be taken into account 
     in applying any such limitation to any other 
     contributions.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to years beginning after December 31, 2000.

     SEC. 1325. REPEAL OF COORDINATION REQUIREMENTS FOR DEFERRED 
                   COMPENSATION PLANS OF STATE AND LOCAL 
                   GOVERNMENTS AND TAX-EXEMPT ORGANIZATIONS.

       (a) In General.--Subsection (c) of section 457 (relating to 
     deferred compensation plans of State and local governments 
     and tax-exempt organizations), as amended by section 1321, is 
     amended to read as follows:

[[Page S428]]

       ``(c) Limitation.--The maximum amount of the compensation 
     of any one individual which may be deferred under subsection 
     (a) during any taxable year shall not exceed the amount in 
     effect under subsection (b)(2)(A) (as modified by any 
     adjustment provided under subsection (b)(3)).''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to years beginning after December 31, 2000.

     SEC. 1326. ELIMINATION OF USER FEE FOR REQUESTS TO IRS 
                   REGARDING PENSION PLANS.

       (a) Elimination of Certain User Fees.--The Secretary of the 
     Treasury or the Secretary's delegate shall not require 
     payment of user fees under the program established under 
     section 7527 of the Internal Revenue Code of 1986 for 
     requests to the Internal Revenue Service for determination 
     letters with respect to the qualified status of a pension 
     benefit plan maintained solely by one or more eligible 
     employers or any trust which is part of the plan. The 
     preceding sentence shall not apply to any request--
       (1) made after the 5th plan year the pension benefit plan 
     is in existence, or
       (2) made by the sponsor of any prototype or similar plan 
     which the sponsor intends to market to participating 
     employers.
       (b) Pension Benefit Plan.--For purposes of this section, 
     the term ``pension benefit plan'' means a pension, profit-
     sharing, stock bonus, annuity, or employee stock ownership 
     plan.
       (c) Eligible Employer.--For purposes of this section, the 
     term ``eligible employer'' has the same meaning given such 
     term in section 408(p)(2)(C)(i)(I) of the Internal Revenue 
     Code of 1986. The determination of whether an employer is an 
     eligible employer under this section shall be made as of the 
     date of the request described in subsection (a).
       (d) Effective Date.--The provisions of this section shall 
     apply with respect to requests made after December 31, 2000.

     SEC. 1327. DEDUCTION LIMITS.

       (a) In General.--Section 404(a) (relating to general rule) 
     is amended by adding at the end the following:
       ``(12) Definition of compensation.--For purposes of 
     paragraphs (3), (7), (8), and (9), the term `compensation' 
     shall include amounts treated as participant's compensation 
     under subparagraph (C) or (D) of section 415(c)(3).''.
       (b) Conforming Amendment.--Subparagraph (B) of section 
     404(a)(3) is amended by striking the last sentence thereof.
       (c) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2000.

     SEC. 1328. OPTION TO TREAT ELECTIVE DEFERRALS AS AFTER-TAX 
                   CONTRIBUTIONS.

       (a) In General.--Subpart A of part I of subchapter D of 
     chapter 1 (relating to deferred compensation, etc.) is 
     amended by inserting after section 402 the following new 
     section:

     ``SEC. 402A. OPTIONAL TREATMENT OF ELECTIVE DEFERRALS AS PLUS 
                   CONTRIBUTIONS.

       ``(a) General Rule.--If an applicable retirement plan 
     includes a qualified plus contribution program--
       ``(1) any designated plus contribution made by an employee 
     pursuant to the program shall be treated as an elective 
     deferral for purposes of this chapter, except that such 
     contribution shall not be excludable from gross income, and
       ``(2) such plan (and any arrangement which is part of such 
     plan) shall not be treated as failing to meet any requirement 
     of this chapter solely by reason of including such program.
       ``(b) Qualified Plus Contribution Program.--For purposes of 
     this section--
       ``(1) In general.--The term `qualified plus contribution 
     program' means a program under which an employee may elect to 
     make designated plus contributions in lieu of all or a 
     portion of elective deferrals the employee is otherwise 
     eligible to make under the applicable retirement plan.
       ``(2) Separate accounting required.--A program shall not be 
     treated as a qualified plus contribution program unless the 
     applicable retirement plan--
       ``(A) establishes separate accounts (`designated plus 
     accounts') for the designated plus contributions of each 
     employee and any earnings properly allocable to the 
     contributions, and
       ``(B) maintains separate recordkeeping with respect to each 
     account.
       ``(c) Definitions and Rules Relating to Designated Plus 
     Contributions.--For purposes of this section--
       ``(1) Designated plus contribution.--The term `designated 
     plus contribution' means any elective deferral which--
       ``(A) is excludable from gross income of an employee 
     without regard to this section, and
       ``(B) the employee designates (at such time and in such 
     manner as the Secretary may prescribe) as not being so 
     excludable.
       ``(2) Designation limits.--The amount of elective deferrals 
     which an employee may designate under paragraph (1) shall not 
     exceed the excess (if any) of--
       ``(A) the maximum amount of elective deferrals excludable 
     from gross income of the employee for the taxable year 
     (without regard to this section), over
       ``(B) the aggregate amount of elective deferrals of the 
     employee for the taxable year which the employee does not 
     designate under paragraph (1).
       ``(3) Rollover contributions.--
       ``(A) In general.--A rollover contribution of any payment 
     or distribution from a designated plus account which is 
     otherwise allowable under this chapter may be made only if 
     the contribution is to--
       ``(i) another designated plus account of the individual 
     from whose account the payment or distribution was made, or
       ``(ii) a Roth IRA of such individual.
       ``(B) Coordination with limit.--Any rollover contribution 
     to a designated plus account under subparagraph (A) shall not 
     be taken into account for purposes of paragraph (1).
       ``(d) Distribution Rules.--For purposes of this title--
       ``(1) Exclusion.--Any qualified distribution from a 
     designated plus account shall not be includible in gross 
     income.
       ``(2) Qualified distribution.--For purposes of this 
     subsection--
       ``(A) In general.--The term `qualified distribution' has 
     the meaning given such term by section 408A(d)(2)(A) (without 
     regard to clause (iv) thereof).
       ``(B) Distributions within nonexclusion period.--A payment 
     or distribution from a designated plus account shall not be 
     treated as a qualified distribution if such payment or 
     distribution is made within the 5-taxable-year period 
     beginning with the earlier of--
       ``(i) the first taxable year for which the individual made 
     a designated plus contribution to any designated plus account 
     established for such individual under the same applicable 
     retirement plan, or
       ``(ii) if a rollover contribution was made to such 
     designated plus account from a designated plus account 
     previously established for such individual under another 
     applicable retirement plan, the first taxable year for which 
     the individual made a designated plus contribution to such 
     previously established account.
       ``(C) Distributions of excess deferrals and earnings.--The 
     term `qualified distribution' shall not include any 
     distribution of any excess deferral under section 402(g)(2) 
     and any income on the excess deferral.
       ``(3) Aggregation rules.--Section 72 shall be applied 
     separately with respect to distributions and payments from a 
     designated plus account and other distributions and payments 
     from the plan.
       ``(e) Other Definitions.--For purposes of this section--
       ``(1) Applicable retirement plan.--The term `applicable 
     retirement plan' means--
       ``(A) an employees' trust described in section 401(a) which 
     is exempt from tax under section 501(a), and
       ``(B) a plan under which amounts are contributed by an 
     individual's employer for an annuity contract described in 
     section 403(b).
       ``(2) Elective deferral.--The term `elective deferral' 
     means any elective deferral described in subparagraph (A) or 
     (C) of section 402(g)(3).''.
       (b) Excess Deferrals.--Section 402(g) (relating to 
     limitation on exclusion for elective deferrals) is amended--
       (1) by adding at the end of paragraph (1) the following new 
     sentence: ``The preceding sentence shall not apply to so much 
     of such excess as does not exceed the designated plus 
     contributions of the individual for the taxable year.'', and
       (2) by inserting ``(or would be included but for the last 
     sentence thereof)'' after ``paragraph (1)'' in paragraph 
     (2)(A).
       (c) Rollovers.--Subparagraph (B) of section 402(c)(8) is 
     amended by adding at the end the following:
     ``If any portion of an eligible rollover distribution is 
     attributable to payments or distributions from a designated 
     plus account (as defined in section 402A), an eligible 
     retirement plan with respect to such portion shall include 
     only another designated plus account and a Roth IRA.''.
       (d) Reporting Requirements.--
       (1) W-2 information.--Section 6051(a)(8) is amended by 
     inserting ``, including the amount of designated plus 
     contributions (as defined in section 402A)'' before the comma 
     at the end.
       (2) Information.--Section 6047 is amended by redesignating 
     subsection (f ) as subsection (g) and by inserting after 
     subsection (e) the following new subsection:
       ``(f ) Designated Plus Contributions.--The Secretary shall 
     require the plan administrator of each applicable retirement 
     plan (as defined in section 402A) to make such returns and 
     reports regarding designated plus contributions (as so 
     defined) to the Secretary, participants and beneficiaries of 
     the plan, and such other persons as the Secretary may 
     prescribe.''.
       (e) Conforming Amendments.--
       (1) Section 408A(e) is amended by adding after the first 
     sentence the following new sentence: ``Such term includes a 
     rollover contribution described in section 402A(c)(3)(A).''.
       (2) The table of sections for subpart A of part I of 
     subchapter D of chapter 1 is amended by inserting after the 
     item relating to section 402 the following new item:

``Sec. 402A. Optional treatment of elective deferrals as plus 
              contributions.''.

       (f ) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

                 PART II--ENHANCING FAIRNESS FOR WOMEN

     SEC. 1331. CATCHUP CONTRIBUTIONS FOR INDIVIDUALS AGE 50 OR 
                   OVER.

       (a) In General.--Section 414 (relating to definitions and 
     special rules) is amended by adding at the end the following 
     new subsection:
       ``(v) Catchup Contributions for Individuals Age 50 or 
     Over.--
       ``(1) In general.--An applicable employer plan shall not be 
     treated as failing to meet any requirement of this title 
     solely because the plan permits an eligible participant to 
     make additional elective deferrals in any plan year.
       ``(2) Limitation on amount of additional deferrals.--
       ``(A) In general.--A plan shall not permit additional 
     elective deferrals under paragraph (1) for any year in an 
     amount greater than the lesser of--

[[Page S429]]

       ``(i) the applicable percentage of the applicable dollar 
     amount for such elective deferrals for such year, or
       ``(ii) the excess (if any) of--

       ``(I) the participant's compensation for the year, over
       ``(II) any other elective deferrals of the participant for 
     such year which are made without regard to this subsection.

       ``(B) Applicable percentage.--For purposes of this 
     paragraph, the applicable percentage shall be determined in 
     accordance with the following table:

``For taxable years beginning in:         The applicable percentage is:
  2001...............................................................10
  2002...............................................................20
  2003...............................................................30
  2004...............................................................40
  2005 and thereafter...............................................50.

       ``(3) Treatment of contributions.--In the case of any 
     contribution to a plan under paragraph (1)--
       ``(A) such contribution shall not, with respect to the year 
     in which the contribution is made--
       ``(i) be subject to any otherwise applicable limitation 
     contained in section 402(g), 402(h), 403(b), 404(a), 404(h), 
     408, 415, or 457, or
       ``(ii) be taken into account in applying such limitations 
     to other contributions or benefits under such plan or any 
     other such plan, and
       ``(B) such plan shall not be treated as failing to meet the 
     requirements of section 401(a)(4), 401(a)(26), 401(k)(3), 
     401(k)(11), 401(k)(12), 401(m), 403(b)(12), 408(k), 408(p), 
     408B, 410(b), or 416 by reason of the making of (or the right 
     to make) such contribution.
       ``(4) Eligible participant.--For purposes of this 
     subsection, the term `eligible participant' means, with 
     respect to any plan year, a participant in a plan--
       ``(A) who has attained the age of 50 before the close of 
     the plan year, and
       ``(B) with respect to whom no other elective deferrals may 
     (without regard to this subsection) be made to the plan for 
     the plan year by reason of the application of any limitation 
     or other restriction described in paragraph (3) or contained 
     in the terms of the plan.
       ``(5) Other definitions and rules.--For purposes of this 
     subsection--
       ``(A) Applicable dollar amount.--The term `applicable 
     dollar amount' means, with respect to any year, the amount in 
     effect under section 402(g)(1)(B), 408(p)(2)(E)(i), or 
     457(e)(15)(A), whichever is applicable to an applicable 
     employer plan, for such year.
       ``(B) Applicable employer plan.--The term `applicable 
     employer plan' means--
       ``(i) an employees' trust described in section 401(a) which 
     is exempt from tax under section 501(a),
       ``(ii) a plan under which amounts are contributed by an 
     individual's employer for an annuity contract described in 
     section 403(b),
       ``(iii) an eligible deferred compensation plan under 
     section 457 of an eligible employer as defined in section 
     457(e)(1)(A), and
       ``(iv) an arrangement meeting the requirements of section 
     408 (k) or (p).
       ``(C) Elective deferral.--The term `elective deferral' has 
     the meaning given such term by subsection (u)(2)(C).
       ``(D) Exception for section 457 plans.--This subsection 
     shall not apply to an applicable employer plan described in 
     subparagraph (B)(iii) for any year to which section 457(b)(3) 
     applies.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to contributions in taxable years beginning after 
     December 31, 2000.

     SEC. 1332. EQUITABLE TREATMENT FOR CONTRIBUTIONS OF EMPLOYEES 
                   TO DEFINED CONTRIBUTION PLANS.

       (a) Equitable Treatment.--
       (1) In general.--Subparagraph (B) of section 415(c)(1) 
     (relating to limitation for defined contribution plans) is 
     amended by striking ``25 percent'' and inserting ``100 
     percent''.
       (2) Application to section 403(b).--Section 403(b) is 
     amended--
       (A) by striking ``the exclusion allowance for such taxable 
     year'' in paragraph (1) and inserting ``the applicable limit 
     under section 415'',
       (B) by striking paragraph (2), and
       (C) by inserting ``or any amount received by a former 
     employee after the 5th taxable year following the taxable 
     year in which such employee was terminated'' before the 
     period at the end of the second sentence of paragraph (3).
       (3) Conforming amendments.--
       (A) Subsection (f ) of section 72 is amended by striking 
     ``section 403(b)(2)(D)(iii))'' and inserting ``section 
     403(b)(2)(D)(iii), as in effect before the enactment of the 
     Taxpayer Refund and Relief Act of 1999)''.
       (B) Section 404(a)(10)(B) is amended by striking ``, the 
     exclusion allowance under section 403(b)(2),''.
       (C) Section 415(a)(2) is amended by striking ``, and the 
     amount of the contribution for such portion shall reduce the 
     exclusion allowance as provided in section 403(b)(2)''.
       (D) Section 415(c)(3) is amended by adding at the end the 
     following new subparagraph:
       ``(E) Annuity contracts.--In the case of an annuity 
     contract described in section 403(b), the term `participant's 
     compensation' means the participant's includible compensation 
     determined under section 403(b)(3).''.
       (E) Section 415(c) is amended by striking paragraph (4).
       (F) Section 415(c)(7) is amended to read as follows:
       ``(7) Certain contributions by church plans not treated as 
     exceeding limit.--
       ``(A) In general.--Notwithstanding any other provision of 
     this subsection, at the election of a participant who is an 
     employee of a church or a convention or association of 
     churches, including an organization described in section 
     414(e)(3)(B)(ii), contributions and other additions for an 
     annuity contract or retirement income account described in 
     section 403(b) with respect to such participant, when 
     expressed as an annual addition to such participant's 
     account, shall be treated as not exceeding the limitation of 
     paragraph (1) if such annual addition is not in excess of 
     $10,000.
       ``(B) $40,000 aggregate limitation.--The total amount of 
     additions with respect to any participant which may be taken 
     into account for purposes of this subparagraph for all years 
     may not exceed $40,000.
       ``(C) Annual addition.--For purposes of this paragraph, the 
     term `annual addition' has the meaning given such term by 
     paragraph (2).''.
       (G) Subparagraph (B) of section 402(g)(7) (as redesignated 
     by section 1201) is amended by inserting before the period at 
     the end the following: ``(as in effect before the enactment 
     of the Taxpayer Refund and Relief Act of 1999)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to years beginning after December 31, 2000.
       (b) Special Rules for Sections 403(b) and 408.--
       (1) In general.--Subsection (k) of section 415 is amended 
     by adding at the end the following new paragraph:
       ``(4) Special rules for sections 403(b) and 408.--For 
     purposes of this section, any annuity contract described in 
     section 403(b) for the benefit of a participant shall be 
     treated as a defined contribution plan maintained by each 
     employer with respect to which the participant has the 
     control required under subsection (b) or (c) of section 414 
     (as modified by subsection (h)). For purposes of this 
     section, any contribution by an employer to a simplified 
     employee pension plan for an individual for a taxable year 
     shall be treated as an employer contribution to a defined 
     contribution plan for such individual for such year.''.
       (2) Effective date.--
       (A) In general.--The amendment made by paragraph (1) shall 
     apply to limitation years beginning after December 31, 1999.
       (B) Exclusion allowance.--Effective for limitation years 
     beginning in 2000, in the case of any annuity contract 
     described in section 403(b) of the Internal Revenue Code of 
     1986, the amount of the contribution disqualified by reason 
     of section 415(g) of such Code shall reduce the exclusion 
     allowance as provided in section 403(b)(2) of such Code.
       (3) Modification of 403(b) exclusion allowance to conform 
     to 415 modification.--The Secretary of the Treasury shall 
     modify the regulations regarding the exclusion allowance 
     under section 403(b)(2) of the Internal Revenue Code of 1986 
     to render void the requirement that contributions to a 
     defined benefit pension plan be treated as previously 
     excluded amounts for purposes of the exclusion allowance. For 
     taxable years beginning after December 31, 1999, such 
     regulations shall be applied as if such requirement were 
     void.
       (c) Deferred Compensation Plans of State and Local 
     Governments and Tax-Exempt Organizations.--
       (1) In general.--Subparagraph (B) of section 457(b)(2) 
     (relating to salary limitation on eligible deferred 
     compensation plans) is amended by striking ``33\1/3\ 
     percent'' and inserting ``100 percent''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to years beginning after December 31, 2000.

     SEC. 1333. FASTER VESTING OF CERTAIN EMPLOYER MATCHING 
                   CONTRIBUTIONS.

       (a) Amendments to 1986 Code.--Section 411(a) (relating to 
     minimum vesting standards) is amended--
       (1) in paragraph (2), by striking ``A plan'' and inserting 
     ``Except as provided in paragraph (12), a plan'', and
       (2) by adding at the end the following:
       ``(12) Faster vesting for matching contributions.--In the 
     case of matching contributions (as defined in section 
     401(m)(4)(A)), paragraph (2) shall be applied--
       ``(A) by substituting `3 years' for `5 years' in 
     subparagraph (A), and
       ``(B) by substituting the following table for the table 
     contained in subparagraph (B):

                                                     The nonforfeitable
``Years of service:                                      percentage is:
  2.............................................................20 ....

  3.............................................................40 ....

  4.............................................................60 ....

  5.............................................................80 ....

  6.........................................................100.''.....

       (b) Amendments to ERISA.--Section 203(a) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1053(a)) is 
     amended--
       (1) in paragraph (2), by striking ``A plan'' and inserting 
     ``Except as provided in paragraph (4), a plan'', and
       (2) by adding at the end the following:
       ``(4) Faster vesting for matching contributions.--In the 
     case of matching contributions (as defined in section 
     401(m)(4)(A) of the Internal Revenue Code of 1986), paragraph 
     (2) shall be applied--
       ``(A) by substituting `3 years' for `5 years' in 
     subparagraph (A), and
       ``(B) by substituting the following table for the table 
     contained in subparagraph (B):

                                                     The nonforfeitable
``Years of service:                                      percentage is:
  2.............................................................20 ....

  3.............................................................40 ....

  4.............................................................60 ....

  5.............................................................80 ....

  6.........................................................100.''.....

       (c) Effective Dates.--
       (1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to contributions 
     for plan years beginning after December 31, 2000.

[[Page S430]]

       (2) Collective bargaining agreements.--In the case of a 
     plan maintained pursuant to one or more collective bargaining 
     agreements between employee representatives and one or more 
     employers ratified by the date of the enactment of this Act, 
     the amendments made by this section shall not apply to 
     contributions on behalf of employees covered by any such 
     agreement for plan years beginning before the earlier of--
       (A) the later of--
       (i) the date on which the last of such collective 
     bargaining agreements terminates (determined without regard 
     to any extension thereof on or after such date of the 
     enactment), or
       (ii) January 1, 2001, or
       (B) January 1, 2005.
       (3) Service required.--With respect to any plan, the 
     amendments made by this section shall not apply to any 
     employee before the date that such employee has 1 hour of 
     service under such plan in any plan year to which the 
     amendments made by this section apply.

     SEC. 1334. SIMPLIFY AND UPDATE THE MINIMUM DISTRIBUTION 
                   RULES.

       (a) Simplification and Finalization of Minimum Distribution 
     Requirements.--
       (1) In general.--The Secretary of the Treasury shall--
       (A) simplify and finalize the regulations relating to 
     minimum distribution requirements under sections 401(a)(9), 
     408(a)(6) and (b)(3), 403(b)(10), and 457(d)(2) of the 
     Internal Revenue Code of 1986, and
       (B) modify such regulations to--
       (i) reflect current life expectancy, and
       (ii) revise the required distribution methods so that, 
     under reasonable assumptions, the amount of the required 
     minimum distribution does not decrease over a participant's 
     life expectancy.
       (2) Fresh start.--Notwithstanding subparagraph (D) of 
     section 401(a)(9) of such Code, during the first year that 
     regulations are in effect under this subsection, required 
     distributions for future years may be redetermined to reflect 
     changes under such regulations. Such redetermination shall 
     include the opportunity to choose a new designated 
     beneficiary and to elect a new method of calculating life 
     expectancy.
       (3) Effective date for regulations.--Regulations referred 
     to in paragraph (1) shall be effective for years beginning 
     after December 31, 2000, and shall apply in such years 
     without regard to whether an individual had previously begun 
     receiving minimum distributions.
       (b) Repeal of Rule Where Distributions Had Begun Before 
     Death Occurs.--
       (1) In general.--Subparagraph (B) of section 401(a)(9) is 
     amended by striking clause (i) and redesignating clauses 
     (ii), (iii), and (iv) as clauses (i), (ii), and (iii), 
     respectively.
       (2) Conforming changes.--
       (A) Clause (i) of section 401(a)(9)(B) (as so redesignated) 
     is amended--
       (i) by striking ``for other cases'' in the heading, and
       (ii) by striking ``the distribution of the employee's 
     interest has begun in accordance with subparagraph (A)(ii)'' 
     and inserting ``his entire interest has been distributed to 
     him,''.
       (B) Clause (ii) of section 401(a)(9)(B) (as so 
     redesignated) is amended by striking ``clause (ii)'' and 
     inserting ``clause (i)''.
       (C) Clause (iii) of section 401(a)(9)(B) (as so 
     redesignated) is amended--
       (i) by striking ``clause (iii)(I)'' and inserting ``clause 
     (ii)(I)'',
       (ii) by striking ``clause (iii)(III)'' in subclause (I) and 
     inserting ``clause (ii)(III)'',
       (iii) by striking ``the date on which the employee would 
     have attained the age 70\1/2\,'' in subclause (I) and 
     inserting ``April 1 of the calendar year following the 
     calendar year in which the spouse attains 70\1/2\,'', and
       (iv) by striking ``the distributions to such spouse 
     begin,'' in subclause (II) and inserting ``his entire 
     interest has been distributed to him,''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to years beginning after December 31, 2000.
       (c) Reduction in Excise Tax.--
       (1) In general.--Subsection (a) of section 4974 is amended 
     by striking ``50 percent'' and inserting ``10 percent''.
       (2) Effective date.--The amendment made by this subsection 
     shall apply to years beginning after December 31, 2000.

     SEC. 1335. CLARIFICATION OF TAX TREATMENT OF DIVISION OF 
                   SECTION 457 PLAN BENEFITS UPON DIVORCE.

       (a) In General.--Section 414(p)(11) (relating to 
     application of rules to governmental and church plans) is 
     amended--
       (1) by inserting ``or an eligible deferred compensation 
     plan (within the meaning of section 457(b))'' after 
     ``subsection (e))'', and
       (2) in the heading, by striking ``governmental and church 
     plans'' and inserting ``certain other plans''.
       (b) Waiver of Certain Distribution Requirements.--Paragraph 
     (10) of section 414(p) is amended by striking ``and section 
     409(d)'' and inserting ``section 409(d), and section 
     457(d)''.
       (c) Tax Treatment of Payments From a Section 457 Plan.--
     Subsection (p) of section 414 is amended by redesignating 
     paragraph (12) as paragraph (13) and inserting after 
     paragraph (11) the following new paragraph:
       ``(12) Tax treatment of payments from a section 457 plan.--
     If a distribution or payment from an eligible deferred 
     compensation plan described in section 457(b) is made 
     pursuant to a qualified domestic relations order, rules 
     similar to the rules of section 402(e)(1)(A) shall apply to 
     such distribution or payment.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to transfers, distributions, and payments made 
     after December 31, 2000.

     SEC. 1336. MODIFICATION OF SAFE HARBOR RELIEF FOR HARDSHIP 
                   WITHDRAWALS FROM CASH OR DEFERRED ARRANGEMENTS.

       (a) In General.--The Secretary of the Treasury shall revise 
     the regulations relating to hardship distributions under 
     section 401(k)(2)(B)(i)(IV) of the Internal Revenue Code of 
     1986 to provide that the period an employee is prohibited 
     from making elective and employee contributions in order for 
     a distribution to be deemed necessary to satisfy financial 
     need shall be equal to 6 months.
       (b) Effective Date.--The revised regulations under 
     subsection (a) shall apply to years beginning after December 
     31, 2000.

           PART III--INCREASING PORTABILITY FOR PARTICIPANTS

     SEC. 1341. ROLLOVERS ALLOWED AMONG VARIOUS TYPES OF PLANS.

       (a) Rollovers From and to Section 457 Plans.--
       (1) Rollovers from section 457 plans.--
       (A) In general.--Section 457(e) (relating to other 
     definitions and special rules) is amended by adding at the 
     end the following:
       ``(16) Rollover amounts.--
       ``(A) General rule.--In the case of an eligible deferred 
     compensation plan established and maintained by an employer 
     described in subsection (e)(1)(A), if--
       ``(i) any portion of the balance to the credit of an 
     employee in such plan is paid to such employee in an eligible 
     rollover distribution (within the meaning of section 
     402(c)(4) without regard to subparagraph (C) thereof),
       ``(ii) the employee transfers any portion of the property 
     such employee receives in such distribution to an eligible 
     retirement plan described in section 402(c)(8)(B), and
       ``(iii) in the case of a distribution of property other 
     than money, the amount so transferred consists of the 
     property distributed,

     then such distribution (to the extent so transferred) shall 
     not be includible in gross income for the taxable year in 
     which paid.
       ``(B) Certain rules made applicable.--The rules of 
     paragraphs (2) through (7) (other than paragraph (4)(C)) and 
     (9) of section 402(c) and section 402(f ) shall apply for 
     purposes of subparagraph (A).
       ``(C) Reporting.--Rollovers under this paragraph shall be 
     reported to the Secretary in the same manner as rollovers 
     from qualified retirement plans (as defined in section 
     4974(c)).''.
       (B) Deferral limit determined without regard to rollover 
     amounts.--Section 457(b)(2) (defining eligible deferred 
     compensation plan) is amended by inserting ``(other than 
     rollover amounts)'' after ``taxable year''.
       (C) Direct rollover.--Paragraph (1) of section 457(d) is 
     amended by striking ``and'' at the end of subparagraph (A), 
     by striking the period at the end of subparagraph (B) and 
     inserting ``, and'', and by inserting after subparagraph (B) 
     the following:
       ``(C) in the case of a plan maintained by an employer 
     described in subsection (e)(1)(A), the plan meets 
     requirements similar to the requirements of section 
     401(a)(31).

     Any amount transferred in a direct trustee-to-trustee 
     transfer in accordance with section 401(a)(31) shall not be 
     includible in gross income for the taxable year of 
     transfer.''.
       (D) Withholding.--
       (i) Paragraph (12) of section 3401(a) is amended by adding 
     at the end the following:
       ``(E) under or to an eligible deferred compensation plan 
     which, at the time of such payment, is a plan described in 
     section 457(b) maintained by an employer described in section 
     457(e)(1)(A); or''.
       (ii) Paragraph (3) of section 3405(c) is amended to read as 
     follows:
       ``(3) Eligible rollover distribution.--For purposes of this 
     subsection, the term `eligible rollover distribution' has the 
     meaning given such term by section 402(f )(2)(A).''.
       (iii) Liability for withholding.--Subparagraph (B) of 
     section 3405(d)(2) is amended by striking ``or'' at the end 
     of clause (ii), by striking the period at the end of clause 
     (iii) and inserting ``, or'', and by adding at the end the 
     following:
       ``(iv) section 457(b).''.
       (2) Rollovers to section 457 plans.--
       (A) In general.--Section 402(c)(8)(B) (defining eligible 
     retirement plan) is amended by striking ``and'' at the end of 
     clause (iii), by striking the period at the end of clause 
     (iv) and inserting ``, and'', and by inserting after clause 
     (iv) the following new clause:
       ``(v) an eligible deferred compensation plan described in 
     section 457(b) of an employer described in section 
     457(e)(1)(A).''.
       (B) Separate accounting.--Section 402(c) is amended by 
     adding at the end the following new paragraph:
       ``(11) Separate accounting.--Unless a plan described in 
     clause (v) of paragraph (8)(B) agrees to separately account 
     for amounts rolled into such plan from eligible retirement 
     plans not described in such clause, the plan described in 
     such clause may not accept transfers or rollovers from such 
     retirement plans.''.
       (C) 10 percent additional tax.--Subsection (t) of section 
     72 (relating to 10-percent additional tax on early 
     distributions from qualified retirement plans) is amended by 
     adding at the end the following new paragraph:
       ``(9) Special rule for rollovers to section 457 plans.--For 
     purposes of this subsection, a distribution from an eligible 
     deferred compensation plan (as defined in section 457(b)) of 
     an employer described in section 457(e)(1)(A) shall be 
     treated as a distribution from a qualified retirement plan 
     described in 4974(c)(1) to the extent that such distribution 
     is attributable to an amount transferred to an eligible 
     deferred compensation plan from a qualified retirement plan 
     (as defined in section 4974(c)).''.
       (b) Allowance of Rollovers From and to 403 (b) Plans.--
       (1) Rollovers from section 403 (b) plans.--Section 
     403(b)(8)(A)(ii) (relating to rollover

[[Page S431]]

     amounts) is amended by striking ``such distribution'' and all 
     that follows and inserting ``such distribution to an eligible 
     retirement plan described in section 402(c)(8)(B), and''.
       (2) Rollovers to section 403 (b) plans.--Section 
     402(c)(8)(B) (defining eligible retirement plan), as amended 
     by subsection (a), is amended by striking ``and'' at the end 
     of clause (iv), by striking the period at the end of clause 
     (v) and inserting ``, and'', and by inserting after clause 
     (v) the following new clause:
       ``(vi) an annuity contract described in section 403(b).''.
       (c) Expanded Explanation to Recipients of Rollover 
     Distributions.--Paragraph (1) of section 402(f ) (relating to 
     written explanation to recipients of distributions eligible 
     for rollover treatment) is amended by striking ``and'' at the 
     end of subparagraph (C), by striking the period at the end of 
     subparagraph (D) and inserting ``, and'', and by adding at 
     the end the following new subparagraph:
       ``(E) of the provisions under which distributions from the 
     eligible retirement plan receiving the distribution may be 
     subject to restrictions and tax consequences which are 
     different from those applicable to distributions from the 
     plan making such distribution.''.
       (d) Spousal Rollovers.--Section 402(c)(9) (relating to 
     rollover where spouse receives distribution after death of 
     employee) is amended by striking ``; except that'' and all 
     that follows up to the end period.
       (e) Conforming Amendments.--
       (1) Section 72(o)(4) is amended by striking ``and 
     408(d)(3)'' and inserting ``403(b)(8), 408(d)(3), and 
     457(e)(16)''.
       (2) Section 219(d)(2) is amended by striking ``or 
     408(d)(3)'' and inserting ``408(d)(3), or 457(e)(16)''.
       (3) Section 401(a)(31)(B) is amended by striking ``and 
     403(a)(4)'' and inserting ``, 403(a)(4), 403(b)(8), and 
     457(e)(16)''.
       (4) Subparagraph (A) of section 402(f )(2) is amended by 
     striking ``or paragraph (4) of section 403(a)'' and inserting 
     ``, paragraph (4) of section 403(a), subparagraph (A) of 
     section 403(b)(8), or subparagraph (A) of section 
     457(e)(16)''.
       (5) Paragraph (1) of section 402(f ) is amended by striking 
     ``from an eligible retirement plan''.
       (6) Subparagraphs (A) and (B) of section 402(f )(1) are 
     amended by striking ``another eligible retirement plan'' and 
     inserting ``an eligible retirement plan''.
       (7) Subparagraph (B) of section 403(b)(8) is amended to 
     read as follows:
       ``(B) Certain rules made applicable.--The rules of 
     paragraphs (2) through (7) and (9) of section 402(c) and 
     section 402(f ) shall apply for purposes of subparagraph (A), 
     except that section 402(f ) shall be applied to the payor in 
     lieu of the plan administrator.''.
       (8) Section 408(a)(1) is amended by striking ``or 
     403(b)(8)'' and inserting ``, 403(b)(8), or 457(e)(16)''.
       (9) Subparagraphs (A) and (B) of section 415(b)(2) are each 
     amended by striking ``and 408(d)(3)'' and inserting 
     ``403(b)(8), 408(d)(3), and 457(e)(16)''.
       (10) Section 415(c)(2) is amended by striking ``and 
     408(d)(3)'' and inserting ``408(d)(3), and 457(e)(16)''.
       (11) Section 4973(b)(1)(A) is amended by striking ``or 
     408(d)(3)'' and inserting ``408(d)(3), or 457(e)(16)''.
       (f ) Effective Date; Special Rule.--
       (1) Effective date.--The amendments made by this section 
     shall apply to distributions after December 31, 2000.
       (2) Special rule.--Notwithstanding any other provision of 
     law, subsections (h)(3) and (h)(5) of section 1122 of the Tax 
     Reform Act of 1986 shall not apply to any distribution from 
     an eligible retirement plan (as defined in clause (iii) or 
     (iv) of section 402(c)(8)(B) of the Internal Revenue Code of 
     1986) on behalf of an individual if there was a rollover to 
     such plan on behalf of such individual which is permitted 
     solely by reason of any amendment made by this section.

     SEC. 1342. ROLLOVERS OF IRAS INTO WORKPLACE RETIREMENT PLANS.

       (a) In General.--Subparagraph (A) of section 408(d)(3) 
     (relating to rollover amounts) is amended by adding ``or'' at 
     the end of clause (i), by striking clauses (ii) and (iii), 
     and by adding at the end the following:
       ``(ii) the entire amount received (including money and any 
     other property) is paid into an eligible retirement plan for 
     the benefit of such individual not later than the 60th day 
     after the date on which the payment or distribution is 
     received, except that the maximum amount which may be paid 
     into such plan may not exceed the portion of the amount 
     received which is includible in gross income (determined 
     without regard to this paragraph).

     For purposes of clause (ii), the term `eligible retirement 
     plan' means an eligible retirement plan described in clause 
     (iii), (iv), (v), or (vi) of section 402(c)(8)(B).''.
       (b) Conforming Amendments.--
       (1) Paragraph (1) of section 403(b) is amended by striking 
     ``section 408(d)(3)(A)(iii)'' and inserting ``section 
     408(d)(3)(A)(ii)''.
       (2) Clause (i) of section 408(d)(3)(D) is amended by 
     striking ``(i), (ii), or (iii)'' and inserting ``(i) or 
     (ii)''.
       (3) Subparagraph (G) of section 408(d)(3) is amended to 
     read as follows:
       ``(G) Simple retirement accounts.--In the case of any 
     payment or distribution out of a simple retirement account 
     (as defined in subsection (p)) to which section 72(t)(6) 
     applies, this paragraph shall not apply unless such payment 
     or distribution is paid into another simple retirement 
     account.''.
       (c) Effective Date; Special Rule.--
       (1) Effective date.--The amendments made by this section 
     shall apply to distributions after December 31, 2000.
       (2) Special rule.--Notwithstanding any other provision of 
     law, subsections (h)(3) and (h)(5) of section 1122 of the Tax 
     Reform Act of 1986 shall not apply to any distribution from 
     an eligible retirement plan (as defined in clause (iii) or 
     (iv) of section 402(c)(8)(B) of the Internal Revenue Code of 
     1986) on behalf of an individual if there was a rollover to 
     such plan on behalf of such individual which is permitted 
     solely by reason of the amendments made by this section.

     SEC. 1343. ROLLOVERS OF AFTER-TAX CONTRIBUTIONS.

       (a) Rollovers From Exempt Trusts.--Paragraph (2) of section 
     402(c) (relating to maximum amount which may be rolled over) 
     is amended by adding at the end the following: ``The 
     preceding sentence shall not apply to such distribution to 
     the extent--
       ``(A) such portion is transferred in a direct trustee-to-
     trustee transfer to a qualified trust which is part of a plan 
     which is a defined contribution plan and which agrees to 
     separately account for amounts so transferred, including 
     separately accounting for the portion of such distribution 
     which is includible in gross income and the portion of such 
     distribution which is not so includible, or
       ``(B) such portion is transferred to an eligible retirement 
     plan described in clause (i) or (ii) of paragraph (8)(B).''.
       (b) Optional Direct Transfer of Eligible Rollover 
     Distributions.--Subparagraph (B) of section 401(a)(31) 
     (relating to limitation) is amended by adding at the end the 
     following: ``The preceding sentence shall not apply to such 
     distribution if the plan to which such distribution is 
     transferred--
       ``(i) agrees to separately account for amounts so 
     transferred, including separately accounting for the portion 
     of such distribution which is includible in gross income and 
     the portion of such distribution which is not so includible, 
     or
       ``(ii) is an eligible retirement plan described in clause 
     (i) or (ii) of section 402(c)(8)(B).''.
       (c) Rules for Applying Section 72 to IRAs.--Paragraph (3) 
     of section 408(d) (relating to special rules for applying 
     section 72) is amended by inserting at the end the following:
       ``(H) Application of section 72.--
       ``(i) In general.--If--

       ``(I) a distribution is made from an individual retirement 
     plan, and
       ``(II) a rollover contribution is made to an eligible 
     retirement plan described in section 402(c)(8)(B)(iii), (iv), 
     (v), or (vi) with respect to all or part of such 
     distribution,

     then, notwithstanding paragraph (2), the rules of clause (ii) 
     shall apply for purposes of applying section 72.
       ``(ii) Applicable rules.--In the case of a distribution 
     described in clause (i)--

       ``(I) section 72 shall be applied separately to such 
     distribution,
       ``(II) notwithstanding the pro rata allocation of income 
     on, and investment in, the contract to distributions under 
     section 72, the portion of such distribution rolled over to 
     an eligible retirement plan described in clause (i) shall be 
     treated as from income on the contract (to the extent of the 
     aggregate income on the contract from all individual 
     retirement plans of the distributee), and
       ``(III) appropriate adjustments shall be made in applying 
     section 72 to other distributions in such taxable year and 
     subsequent taxable years.''.

       (d) Effective Date.--The amendments made by this section 
     shall apply to distributions made after December 31, 2000.

     SEC. 1344. HARDSHIP EXCEPTION TO 60-DAY RULE.

       (a) Exempt Trusts.--Paragraph (3) of section 402(c) 
     (relating to transfer must be made within 60 days of receipt) 
     is amended to read as follows:
       ``(3) Transfer must be made within 60 days of receipt.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     paragraph (1) shall not apply to any transfer of a 
     distribution made after the 60th day following the day on 
     which the distributee received the property distributed.
       ``(B) Hardship exception.--The Secretary may waive the 60-
     day requirement under subparagraph (A) where the failure to 
     waive such requirement would be against equity or good 
     conscience, including casualty, disaster, or other events 
     beyond the reasonable control of the individual subject to 
     such requirement.''.
       (b) IRAs.--Paragraph (3) of section 408(d) (relating to 
     rollover contributions), as amended by section 1343, is 
     amended by adding after subparagraph (H) the following new 
     subparagraph:
       ``(I) Waiver of 60-day requirement.--The Secretary may 
     waive the 60-day requirement under subparagraphs (A) and (D) 
     where the failure to waive such requirement would be against 
     equity or good conscience, including casualty, disaster, or 
     other events beyond the reasonable control of the individual 
     subject to such requirement.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to distributions after December 31, 2000.

     SEC. 1345. TREATMENT OF FORMS OF DISTRIBUTION.

       (a) Plan Transfers.--
       (1) Amendment to internal revenue code of 1986.--Paragraph 
     (6) of section 411(d) (relating to accrued benefit not to be 
     decreased by amendment) is amended by adding at the end the 
     following:
       ``(D) Plan transfers.--
       ``(i) A defined contribution plan (in this subparagraph 
     referred to as the `transferee plan') shall not be treated as 
     failing to meet the requirements of this subsection merely 
     because the transferee plan does not provide some or all of 
     the forms of distribution previously available

[[Page S432]]

     under another defined contribution plan (in this subparagraph 
     referred to as the `transferor plan') to the extent that--

       ``(I) the forms of distribution previously available under 
     the transferor plan applied to the account of a participant 
     or beneficiary under the transferor plan that was transferred 
     from the transferor plan to the transferee plan pursuant to a 
     direct transfer rather than pursuant to a distribution from 
     the transferor plan,
       ``(II) the terms of both the transferor plan and the 
     transferee plan authorize the transfer described in subclause 
     (I),
       ``(III) the transfer described in subclause (I) was made 
     pursuant to a voluntary election by the participant or 
     beneficiary whose account was transferred to the transferee 
     plan,
       ``(IV) the election described in subclause (III) was made 
     after the participant or beneficiary received a notice 
     describing the consequences of making the election,
       ``(V) if the transferor plan provides for an annuity as the 
     normal form of distribution under the plan in accordance with 
     section 417, the transfer is made with the consent of the 
     participant's spouse (if any), and such consent meets 
     requirements similar to the requirements imposed by section 
     417(a)(2), and
       ``(VI) the transferee plan allows the participant or 
     beneficiary described in clause (iii) to receive any 
     distribution to which the participant or beneficiary is 
     entitled under the transferee plan in the form of a single 
     sum distribution.

       ``(ii) Clause (i) shall apply to plan mergers and other 
     transactions having the effect of a direct transfer, 
     including consolidations of benefits attributable to 
     different employers within a multiple employer plan.
       ``(E) Elimination of form of distribution.--Except to the 
     extent provided in regulations, a defined contribution plan 
     shall not be treated as failing to meet the requirements of 
     this section merely because of the elimination of a form of 
     distribution previously available thereunder. This 
     subparagraph shall not apply to the elimination of a form of 
     distribution with respect to any participant unless--
       ``(i) a single sum payment is available to such participant 
     at the same time or times as the form of distribution being 
     eliminated, and
       ``(ii) such single sum payment is based on the same or 
     greater portion of the participant's account as the form of 
     distribution being eliminated.''.
       (2) Amendment to erisa.--Section 204(g) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1054(g)) is 
     amended by adding at the end the following:
       ``(4)(A) A defined contribution plan (in this subparagraph 
     referred to as the `transferee plan') shall not be treated as 
     failing to meet the requirements of this subsection merely 
     because the transferee plan does not provide some or all of 
     the forms of distribution previously available under another 
     defined contribution plan (in this subparagraph referred to 
     as the `transferor plan') to the extent that--
       ``(i) the forms of distribution previously available under 
     the transferor plan applied to the account of a participant 
     or beneficiary under the transferor plan that was transferred 
     from the transferor plan to the transferee plan pursuant to a 
     direct transfer rather than pursuant to a distribution from 
     the transferor plan;
       ``(ii) the terms of both the transferor plan and the 
     transferee plan authorize the transfer described in clause 
     (i);
       ``(iii) the transfer described in clause (i) was made 
     pursuant to a voluntary election by the participant or 
     beneficiary whose account was transferred to the transferee 
     plan;
       ``(iv) the election described in clause (iii) was made 
     after the participant or beneficiary received a notice 
     describing the consequences of making the election;
       ``(v) if the transferor plan provides for an annuity as the 
     normal form of distribution under the plan in accordance with 
     section 205, the transfer is made with the consent of the 
     participant's spouse (if any), and such consent meets 
     requirements similar to the requirements imposed by section 
     205(c)(2); and
       ``(vi) the transferee plan allows the participant or 
     beneficiary described in clause (iii) to receive any 
     distribution to which the participant or beneficiary is 
     entitled under the transferee plan in the form of a single 
     sum distribution.
       ``(B) Subparagraph (A) shall apply to plan mergers and 
     other transactions having the effect of a direct transfer, 
     including consolidations of benefits attributable to 
     different employers within a multiple employer plan.
       ``(5) Elimination of form of distribution.--Except to the 
     extent provided in regulations, a defined contribution plan 
     shall not be treated as failing to meet the requirements of 
     this section merely because of the elimination of a form of 
     distribution previously available thereunder. This paragraph 
     shall not apply to the elimination of a form of distribution 
     with respect to any participant unless--
       ``(A) a single sum payment is available to such participant 
     at the same time or times as the form of distribution being 
     eliminated; and
       ``(B) such single sum payment is based on the same or 
     greater portion of the participant's account as the form of 
     distribution being eliminated.''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to years beginning after December 31, 2000.
       (b) Regulations.--
       (1) Amendment to internal revenue code of 1986.--The last 
     sentence of paragraph (6)(B) of section 411(d) (relating to 
     accrued benefit not to be decreased by amendment) is amended 
     to read as follows: ``The Secretary shall by regulations 
     provide that this subparagraph shall not apply to any plan 
     amendment that does not adversely affect the rights of 
     participants in a material manner.''.
       (2) Amendment to erisa.--The last sentence of section 
     204(g)(2) of the Employee Retirement Income Security Act of 
     1974 (29 U.S.C. 1054(g)(2)) is amended to read as follows: 
     ``The Secretary of the Treasury shall by regulations provide 
     that this paragraph shall not apply to any plan amendment 
     that does not adversely affect the rights of participants in 
     a material manner.''.
       (3) Secretary directed.--Not later than December 31, 2001, 
     the Secretary of the Treasury is directed to issue final 
     regulations under section 411(d)(6) of the Internal Revenue 
     Code of 1986 and section 204(g) of the Employee Retirement 
     Income Security Act of 1974, including the regulations 
     required by the amendments made by this subsection. Such 
     regulations shall apply to plan years beginning after 
     December 31, 2001, or such earlier date as is specified by 
     the Secretary of the Treasury.

     SEC. 1346. RATIONALIZATION OF RESTRICTIONS ON DISTRIBUTIONS.

       (a) Modification of Same Desk Exception.--
       (1) Section 401(k).--
       (A) Section 401(k)(2)(B)(i)(I) (relating to qualified cash 
     or deferred arrangements) is amended by striking ``separation 
     from service'' and inserting ``severance from employment''.
       (B) Subparagraph (A) of section 401(k)(10) (relating to 
     distributions upon termination of plan or disposition of 
     assets or subsidiary) is amended to read as follows:
       ``(A) In general.--An event described in this subparagraph 
     is the termination of the plan without establishment or 
     maintenance of another defined contribution plan (other than 
     an employee stock ownership plan as defined in section 
     4975(e)(7)).''.
       (C) Section 401(k)(10) is amended--
       (i) in subparagraph (B)--

       (I) by striking ``An event'' in clause (i) and inserting 
     ``A termination'', and
       (II) by striking ``the event'' in clause (i) and inserting 
     ``the termination'',

       (ii) by striking subparagraph (C), and
       (iii) by striking ``or disposition of assets or 
     subsidiary'' in the heading.
       (2) Section 403(b).--
       (A) Paragraphs (7)(A)(ii) and (11)(A) of section 403(b) are 
     each amended by striking ``separates from service'' and 
     inserting ``has a severance from employment''.
       (B) The heading for paragraph (11) of section 403(b) is 
     amended by striking ``separation from service'' and inserting 
     ``severance from employment''.
       (3) Section 457.--Clause (ii) of section 457(d)(1)(A) is 
     amended by striking ``is separated from service'' and 
     inserting ``has a severance from employment''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to distributions after December 31, 2000.

     SEC. 1347. PURCHASE OF SERVICE CREDIT IN GOVERNMENTAL DEFINED 
                   BENEFIT PLANS.

       (a) 403(b) Plans.--Subsection (b) of section 403 is amended 
     by adding at the end the following new paragraph:
       ``(13) Trustee-to-trustee transfers to purchase permissive 
     service credit.--No amount shall be includible in gross 
     income by reason of a direct trustee-to-trustee transfer to a 
     defined benefit governmental plan (as defined in section 
     414(d)) if such transfer is--
       ``(A) for the purchase of permissive service credit (as 
     defined in section 415(n)(3)(A)) under such plan, or
       ``(B) a repayment to which section 415 does not apply by 
     reason of subsection (k)(3) thereof.''.
       (b) 457 Plans.--
       (1) Subsection (e) of section 457 is amended by adding 
     after paragraph (16) the following new paragraph:
       ``(17) Trustee-to-trustee transfers to purchase permissive 
     service credit.--No amount shall be includible in gross 
     income by reason of a direct trustee-to-trustee transfer to a 
     defined benefit governmental plan (as defined in section 
     414(d)) if such transfer is--
       ``(A) for the purchase of permissive service credit (as 
     defined in section 415(n)(3)(A)) under such plan, or
       ``(B) a repayment to which section 415 does not apply by 
     reason of subsection (k)(3) thereof.''.
       (2) Section 457(b)(2) is amended by striking ``(other than 
     rollover amounts)'' and inserting ``(other than rollover 
     amounts and amounts received in a transfer referred to in 
     subsection (e)(17))''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to trustee-to-trustee transfers after December 
     31, 2000.

     SEC. 1348. EMPLOYERS MAY DISREGARD ROLLOVERS FOR PURPOSES OF 
                   CASH-OUT AMOUNTS.

       (a) Qualified Plans.--
       (1) Amendment to internal revenue code of 1986.--Section 
     411(a)(11) (relating to restrictions on certain mandatory 
     distributions) is amended by adding at the end the following:
       ``(D) Special rule for rollover contributions.--A plan 
     shall not fail to meet the requirements of this paragraph if, 
     under the terms of the plan, the present value of the 
     nonforfeitable accrued benefit is determined without regard 
     to that portion of such benefit which is attributable to 
     rollover contributions (and earnings allocable thereto). For 
     purposes of this subparagraph, the term `rollover 
     contributions' means any rollover contribution under sections 
     402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and 
     457(e)(16).''.
       (2) Amendment to erisa.--Section 203(e) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1053(c)) is 
     amended by adding at the end the following:
       ``(4) A plan shall not fail to meet the requirements of 
     this subsection if, under the terms of

[[Page S433]]

     the plan, the present value of the nonforfeitable accrued 
     benefit is determined without regard to that portion of such 
     benefit which is attributable to rollover contributions (and 
     earnings allocable thereto). For purposes of this 
     subparagraph, the term `rollover contributions' means any 
     rollover contribution under sections 402(c), 403(a)(4), 
     403(b)(8), 408(d)(3)(A)(ii), and 457(e)(16) of the Internal 
     Revenue Code of 1986.''.
       (b) Eligible Deferred Compensation Plans.--Clause (i) of 
     section 457(e)(9)(A) is amended by striking ``such amount'' 
     and inserting ``the portion of such amount which is not 
     attributable to rollover contributions (as defined in section 
     411(a)(11)(D))''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to distributions after December 31, 2000.

     SEC. 1349. MINIMUM DISTRIBUTION AND INCLUSION REQUIREMENTS 
                   FOR SECTION 457 PLANS.

       (a) Minimum Distribution Requirements.--Paragraph (2) of 
     section 457(d) (relating to distribution requirements) is 
     amended to read as follows:
       ``(2) Minimum distribution requirements.--A plan meets the 
     minimum distribution requirements of this paragraph if such 
     plan meets the requirements of section 401(a)(9).''.
       (b) Inclusion in Gross Income.--
       (1) Year of inclusion.--Subsection (a) of section 457 
     (relating to year of inclusion in gross income) is amended to 
     read as follows:
       ``(a) Year of inclusion in gross income.--
       ``(1) In general.--Any amount of compensation deferred 
     under an eligible deferred compensation plan, and any income 
     attributable to the amounts so deferred, shall be includible 
     in gross income only for the taxable year in which such 
     compensation or other income--
       ``(A) is paid to the participant or other beneficiary, in 
     the case of a plan of an eligible employer described in 
     subsection (e)(1)(A), and
       ``(B) is paid or otherwise made available to the 
     participant or other beneficiary, in the case of a plan of an 
     eligible employer described in subsection (e)(1)(B).
       ``(2) Special rule for rollover amounts.--To the extent 
     provided in section 72(t)(9), section 72(t) shall apply to 
     any amount includible in gross income under this 
     subsection.''.
       (2) Conforming amendments.--
       (A) So much of paragraph (9) of section 457(e) as precedes 
     subparagraph (A) is amended to read as follows:
       ``(9) Benefits of tax exempt organization plans not treated 
     as made available by reason of certain elections, etc.--In 
     the case of an eligible deferred compensation plan of an 
     employer described in subsection (e)(1)(B)--''.
       (B) Section 457(d) is amended by adding at the end the 
     following new paragraph:
       ``(3) Special rule for government plan.--An eligible 
     deferred compensation plan of an employer described in 
     subsection (e)(1)(A) shall not be treated as failing to meet 
     the requirements of this subsection solely by reason of 
     making a distribution described in subsection (e)(9)(A).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to distributions after December 31, 2000.

        PART IV--STRENGTHENING PENSION SECURITY AND ENFORCEMENT

     SEC. 1351. REPEAL OF 150 PERCENT OF CURRENT LIABILITY FUNDING 
                   LIMIT.

       (a) Amendment to Internal Revenue Code of 1986.--Section 
     412(c)(7) (relating to full-funding limitation) is amended--
       (1) by striking ``the applicable percentage'' in 
     subparagraph (A)(i)(I) and inserting ``in the case of plan 
     years beginning before January 1, 2004, the applicable 
     percentage'', and
       (2) by amending subparagraph (F) to read as follows:
       ``(F) Applicable percentage.--For purposes of subparagraph 
     (A)(i)(I), the applicable percentage shall be determined in 
     accordance with the following table:

``In the case of any plan year beginning The applicable percentage is--
  2001.........................................................160 ....

  2002.........................................................165 ....

  2003......................................................170.''.....

       (b) Amendment to ERISA.--Section 302(c)(7) of the Employee 
     Retirement Income Security Act of 1974 (29 U.S.C. 1082(c)(7)) 
     is amended--
       (1) by striking ``the applicable percentage'' in 
     subparagraph (A)(i)(I) and inserting ``in the case of plan 
     years beginning before January 1, 2004, the applicable 
     percentage'', and
       (2) by amending subparagraph (F) to read as follows:
       ``(F) Applicable percentage.--For purposes of subparagraph 
     (A)(i)(I), the applicable percentage shall be determined in 
     accordance with the following table:

``In the case of any plan year beginning The applicable percentage is--
  2001.........................................................160 ....

  2002.........................................................165 ....

  2003......................................................170.''.....

       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2000.

     SEC. 1352. MAXIMUM CONTRIBUTION DEDUCTION RULES MODIFIED AND 
                   APPLIED TO ALL DEFINED BENEFIT PLANS.

       (a) In General.--Subparagraph (D) of section 404(a)(1) 
     (relating to special rule in case of certain plans) is 
     amended to read as follows:
       ``(D) Special rule in case of certain plans.--
       ``(i) In general.--In the case of any defined benefit plan, 
     except as provided in regulations, the maximum amount 
     deductible under the limitations of this paragraph shall not 
     be less than the unfunded termination liability (determined 
     as if the proposed termination date referred to in section 
     4041(b)(2)(A)(i)(II) of the Employee Retirement Income 
     Security Act of 1974 were the last day of the plan year).
       ``(ii) Plans with less than 100 participants.--For purposes 
     of this subparagraph, in the case of a plan which has less 
     than 100 participants for the plan year, termination 
     liability shall not include the liability attributable to 
     benefit increases for highly compensated employees (as 
     defined in section 414(q)) resulting from a plan amendment 
     which is made or becomes effective, whichever is later, 
     within the last 2 years before the termination date.
       ``(iii) Rule for determining number of participants.--For 
     purposes of determining whether a plan has more than 100 
     participants, all defined benefit plans maintained by the 
     same employer (or any member of such employer's controlled 
     group (within the meaning of section 412(l)(8)(C))) shall be 
     treated as one plan, but only employees of such member or 
     employer shall be taken into account.
       ``(iv) Plans established and maintain by professional 
     service employers.--Clause (i) shall not apply to a plan 
     described in section 4021(b)(13) of the Employee Retirement 
     Income Security Act of 1974.''.
       (b) Conforming Amendment.--Paragraph (6) of section 4972(c) 
     is amended to read as follows:
       ``(6) Exceptions.--In determining the amount of 
     nondeductible contributions for any taxable year, there shall 
     not be taken into account so much of the contributions to one 
     or more defined contribution plans which are not deductible 
     when contributed solely because of section 404(a)(7) as does 
     not exceed the greater of--
       ``(A) the amount of contributions not in excess of 6 
     percent of compensation (within the meaning of section 
     404(a)) paid or accrued (during the taxable year for which 
     the contributions were made) to beneficiaries under the 
     plans, or
       ``(B) the sum of--
       ``(i) the amount of contributions described in section 
     401(m)(4)(A), plus
       ``(ii) the amount of contributions described in section 
     402(g)(3)(A).

     For purposes of this paragraph, the deductible limits under 
     section 404(a)(7) shall first be applied to amounts 
     contributed to a defined benefit plan and then to amounts 
     described in subparagraph (B).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2000.

     SEC. 1353. EXCISE TAX RELIEF FOR SOUND PENSION FUNDING.

       (a) In General.--Subsection (c) of section 4972 (relating 
     to nondeductible contributions) is amended by adding at the 
     end the following new paragraph:
       ``(7) Defined benefit plan exception.--In determining the 
     amount of nondeductible contributions for any taxable year, 
     an employer may elect for such year not to take into account 
     any contributions to a defined benefit plan except to the 
     extent that such contributions exceed the full-funding 
     limitation (as defined in section 412(c)(7), determined 
     without regard to subparagraph (A)(i)(I) thereof). For 
     purposes of this paragraph, the deductible limits under 
     section 404(a)(7) shall first be applied to amounts 
     contributed to defined contribution plans and then to amounts 
     described in this paragraph. If an employer makes an election 
     under this paragraph for a taxable year, paragraph (6) shall 
     not apply to such employer for such taxable year.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2000.

     SEC. 1354. EXCISE TAX ON FAILURE TO PROVIDE NOTICE BY DEFINED 
                   BENEFIT PLANS SIGNIFICANTLY REDUCING FUTURE 
                   BENEFIT ACCRUALS.

       (a) Amendment to 1986 Code.--Chapter 43 of subtitle D 
     (relating to qualified pension, etc., plans) is amended by 
     adding at the end the following new section:

     ``SEC. 4980F. FAILURE OF APPLICABLE PLANS REDUCING BENEFIT 
                   ACCRUALS TO SATISFY NOTICE REQUIREMENTS.

       ``(a) Imposition of Tax.--There is hereby imposed a tax on 
     the failure of any applicable pension plan to meet the 
     requirements of subsection (e) with respect to any applicable 
     individual.
       ``(b) Amount of Tax.--
       ``(1) In general.--The amount of the tax imposed by 
     subsection (a) on any failure with respect to any applicable 
     individual shall be $100 for each day in the noncompliance 
     period with respect to such failure.
       ``(2) Noncompliance period.--For purposes of this section, 
     the term `noncompliance period' means, with respect to any 
     failure, the period beginning on the date the failure first 
     occurs and ending on the date the failure is corrected.
       ``(c) Limitations on Amount of Tax.--
       ``(1) Overall limitation for unintentional failures.--In 
     the case of failures that are due to reasonable cause and not 
     to willful neglect, the tax imposed by subsection (a) for 
     failures during the taxable year of the employer (or, in the 
     case of a multiemployer plan, the taxable year of the trust 
     forming part of the plan) shall not exceed $500,000. For 
     purposes of the preceding sentence, all multiemployer plans 
     of which the same trust forms a part shall be treated as one 
     plan. For purposes of this paragraph, if not all persons who 
     are treated as a single employer for purposes of this section 
     have the same taxable year, the taxable years taken into 
     account shall be determined under principles similar to the 
     principles of section 1561.
       ``(2) Waiver by secretary.--In the case of a failure which 
     is due to reasonable cause and not to willful neglect, the 
     Secretary may waive part or all of the tax imposed by 
     subsection (a) to the extent that the payment of such tax 
     would be excessive relative to the failure involved.
       ``(d) Liability for Tax.--The following shall be liable for 
     the tax imposed by subsection (a):

[[Page S434]]

       ``(1) In the case of a plan other than a multiemployer 
     plan, the employer.
       ``(2) In the case of a multiemployer plan, the plan.
       ``(e) Notice Requirements for Plans Significantly Reducing 
     Benefit Accruals.--
       ``(1) In general.--If an applicable pension plan is amended 
     to provide for a significant reduction in the rate of future 
     benefit accrual, the plan administrator shall provide written 
     notice to each applicable individual (and to each employee 
     organization representing applicable individuals).
       ``(2) Notice.--The notice required by paragraph (1) shall 
     be written in a manner calculated to be understood by the 
     average plan participant and shall provide sufficient 
     information (as determined in accordance with regulations 
     prescribed by the Secretary) to allow applicable individuals 
     to understand the effect of the plan amendment.
       ``(3) Timing of notice.--Except as provided in regulations, 
     the notice required by paragraph (1) shall be provided within 
     a reasonable time before the effective date of the plan 
     amendment.
       ``(4) Designees.--Any notice under paragraph (1) may be 
     provided to a person designated, in writing, by the person to 
     which it would otherwise be provided.
       ``(5) Notice before adoption of amendment.--A plan shall 
     not be treated as failing to meet the requirements of 
     paragraph (1) merely because notice is provided before the 
     adoption of the plan amendment if no material modification of 
     the amendment occurs before the amendment is adopted.
       ``(f ) Applicable Individual; Applicable Pension Plan.--For 
     purposes of this section--
       ``(1) Applicable individual.--The term `applicable 
     individual' means, with respect to any plan amendment--
       ``(A) any participant in the plan, and
       ``(B) any beneficiary who is an alternate payee (within the 
     meaning of section 414(p)(8)) under an applicable qualified 
     domestic relations order (within the meaning of section 
     414(p)(1)(A)),

     who may reasonably be expected to be affected by such plan 
     amendment.
       ``(2) Applicable pension plan.--The term `applicable 
     pension plan' means--
       ``(A) any defined benefit plan, or
       ``(B) an individual account plan which is subject to the 
     funding standards of section 412,

     which had 100 or more participants who had accrued a benefit, 
     or with respect to whom contributions were made, under the 
     plan (whether or not vested) as of the last day of the plan 
     year preceding the plan year in which the plan amendment 
     becomes effective. Such term shall not include a governmental 
     plan (within the meaning of section 414(d)) or a church plan 
     (within the meaning of section 414(e)) with respect to which 
     the election provided by section 410(d) has not been made.''.
       (b) Amendment to ERISA.--Section 204(h) of the Employee 
     Retirement Income Security Act or 1974 (29 U.S.C. 1054(h)) is 
     amended by adding at the end the following new paragraph:
       ``(3)(A) A plan to which paragraph (1) applies shall not be 
     treated as meeting the requirements of such paragraph unless, 
     in addition to any notice required to be provided to an 
     individual or organization under such paragraph, the plan 
     administrator provides the notice described in subparagraph 
     (B).
       ``(B) The notice required by subparagraph (A) shall be 
     written in a manner calculated to be understood by the 
     average plan participant and shall provide sufficient 
     information (as determined in accordance with regulations 
     prescribed by the Secretary of the Treasury) to allow 
     individuals to understand the effect of the plan amendment.
       ``(C) Except as provided in regulations prescribed by the 
     Secretary of the Treasury, the notice required by 
     subparagraph (A) shall be provided within a reasonable time 
     before the effective date of the plan amendment.
       ``(D) A plan shall not be treated as failing to meet the 
     requirements of subparagraph (A) merely because notice is 
     provided before the adoption of the plan amendment if no 
     material modification of the amendment occurs before the 
     amendment is adopted.''.
       (c) Clerical Amendment.--The table of sections for chapter 
     43 of subtitle D is amended by adding at the end the 
     following new item:

``Sec. 4980F. Failure of applicable plans reducing benefit accruals to 
              satisfy notice requirements.''.

       (d) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply to plan amendments taking effect on or after the date 
     of the enactment of this Act.
       (2) Transition.--Until such time as the Secretary of the 
     Treasury issues regulations under sections 4980F(e)(2) and 
     (3) of the Internal Revenue Code of 1986 and section 
     204(h)(3) of the Employee Retirement Income Security Act of 
     1974 (as added by the amendments made by this section), a 
     plan shall be treated as meeting the requirements of such 
     sections if it makes a good faith effort to comply with such 
     requirements.
       (3) Special rule.--The period for providing any notice 
     required by the amendments made by this section shall not end 
     before the date which is 3 months after the date of the 
     enactment of this Act.

     SEC. 1355. PROTECTION OF INVESTMENT OF EMPLOYEE CONTRIBUTIONS 
                   TO 401(K) PLANS.

       (a) In General.--Section 1524(b) of the Taxpayer Relief Act 
     of 1997 is amended to read as follows:
       ``(b) Effective Date.--
       ``(1) In general.--Except as provided in paragraph (2), the 
     amendments made by this section shall apply to elective 
     deferrals for plan years beginning after December 31, 1998.
       ``(2) Nonapplication to previously acquired property.--The 
     amendments made by this section shall not apply to any 
     elective deferral which is invested in assets consisting of 
     qualifying employer securities, qualifying employer real 
     property, or both, if such assets were acquired before 
     January 1, 1999.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply as if included in the provision of the Taxpayer 
     Relief Act of 1997 to which it relates.

     SEC. 1356. TREATMENT OF MULTIEMPLOYER PLANS UNDER SECTION 
                   415.

       (a) Compensation Limit.--Paragraph (11) of section 415(b) 
     (relating to limitation for defined benefit plans) is amended 
     to read as follows:
       ``(11) Special limitation rule for governmental and 
     multiemployer plans.--In the case of a governmental plan (as 
     defined in section 414(d)) or a multiemployer plan (as 
     defined in section 414(f )), subparagraph (B) of paragraph 
     (1) shall not apply.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to years beginning after December 31, 2000.

                  PART V--REDUCING REGULATORY BURDENS

     SEC. 1361. MODIFICATION OF TIMING OF PLAN VALUATIONS.

       (a) In General.--Section 412(c)(9) (relating to annual 
     valuation) is amended--
       (1) by striking ``For purposes'' and inserting the 
     following:
       ``(A) In general.--For purposes'', and
       (2) by adding at the end the following:
       ``(B) Election to use prior year valuation.--
       ``(i) In general.--Except as provided in clause (ii), if, 
     for any plan year--

       ``(I) an election is in effect under this subparagraph with 
     respect to a plan, and
       ``(II) the assets of the plan are not less than 125 percent 
     of the plan's current liability (as defined in paragraph 
     (7)(B)), determined as of the valuation date for the 
     preceding plan year,

     then this section shall be applied using the information 
     available as of such valuation date.
       ``(ii) Exceptions.--

       ``(I) Actual valuation every 3 years.--Clause (i) shall not 
     apply for more than 2 consecutive plan years and valuation 
     shall be under subparagraph (A) with respect to any plan year 
     to which clause (i) does not apply by reason of this 
     subclause.
       ``(II) Regulations.--Clause (i) shall not apply to the 
     extent that more frequent valuations are required under the 
     regulations under subparagraph (A).

       ``(iii) Adjustments.--Information under clause (i) shall, 
     in accordance with regulations, be actuarially adjusted to 
     reflect significant differences in participants.
       ``(iv) Election.--An election under this subparagraph, once 
     made, shall be irrevocable without the consent of the 
     Secretary.''.
       (b) Amendments to ERISA.--Paragraph (9) of section 302(c) 
     of the Employee Retirement Income Security Act of 1974 (29 
     U.S.C. 1053(c)) is amended--
       (1) by inserting ``(A)'' after ``(9)'', and
       (2) by adding at the end the following:
       ``(B)(i) Except as provided in clause (ii), if, for any 
     plan year--
       ``(I) an election is in effect under this subparagraph with 
     respect to a plan, and
       ``(II) the assets of the plan are not less than 125 percent 
     of the plan's current liability (as defined in paragraph 
     (7)(B)), determined as of the valuation date for the 
     preceding plan year,

     then this section shall be applied using the information 
     available as of such valuation date.
       ``(ii)(I) Clause (i) shall not apply for more than 2 
     consecutive plan years and valuation shall be under 
     subparagraph (A) with respect to any plan year to which 
     clause (i) does not apply by reason of this subclause.
       ``(II) Clause (i) shall not apply to the extent that more 
     frequent valuations are required under the regulations under 
     subparagraph (A).
       ``(iii) Information under clause (i) shall, in accordance 
     with regulations, be actuarially adjusted to reflect 
     significant differences in participants.
       ``(iv) An election under this subparagraph, once made, 
     shall be irrevocable without the consent of the Secretary of 
     the Treasury.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to plan years beginning after December 31, 2000.

     SEC. 1362. ESOP DIVIDENDS MAY BE REINVESTED WITHOUT LOSS OF 
                   DIVIDEND DEDUCTION.

       (a) In General.--Section 404(k)(2)(A) (defining applicable 
     dividends) is amended by striking ``or'' at the end of clause 
     (ii), by redesignating clause (iii) as clause (iv), and by 
     inserting after clause (ii) the following new clause:
       ``(iii) is, at the election of such participants or their 
     beneficiaries--

       ``(I) payable as provided in clause (i) or (ii), or
       ``(II) paid to the plan and reinvested in qualifying 
     employer securities, or''.

       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2000.

     SEC. 1363. REPEAL OF TRANSITION RULE RELATING TO CERTAIN 
                   HIGHLY COMPENSATED EMPLOYEES.

       (a) In General.--Paragraph (4) of section 1114(c) of the 
     Tax Reform Act of 1986 is hereby repealed.
       (b) Effective Date.--The repeal made by subsection (a) 
     shall apply to plan years beginning after December 31, 1999.

     SEC. 1364. EMPLOYEES OF TAX-EXEMPT ENTITIES.

       (a) In General.--The Secretary of the Treasury shall modify 
     Treasury Regulations section 1.410(b)-6(g) to provide that 
     employees of an organization described in section 
     403(b)(1)(A)(i) of

[[Page S435]]

     the Internal Revenue Code of 1986 who are eligible to make 
     contributions under section 403(b) of such Code pursuant to a 
     salary reduction agreement may be treated as excludable with 
     respect to a plan under section 401 (k) or (m) of such Code 
     that is provided under the same general arrangement as a plan 
     under such section 401(k), if--
       (1) no employee of an organization described in section 
     403(b)(1)(A)(i) of such Code is eligible to participate in 
     such section 401(k) plan or section 401(m) plan, and
       (2) 95 percent of the employees who are not employees of an 
     organization described in section 403(b)(1)(A)(i) of such 
     Code are eligible to participate in such plan under such 
     section 401 (k) or (m).
       (b) Effective Date.--The modification required by 
     subsection (a) shall apply as of the same date set forth in 
     section 1426(b) of the Small Business Job Protection Act of 
     1996.

     SEC. 1365. CLARIFICATION OF TREATMENT OF EMPLOYER-PROVIDED 
                   RETIREMENT ADVICE.

       (a) In General.--Subsection (a) of section 132 (relating to 
     exclusion from gross income) is amended by striking ``or'' at 
     the end of paragraph (5), by striking the period at the end 
     of paragraph (6) and inserting ``, or'', and by adding at the 
     end the following new paragraph:
       ``(7) qualified retirement planning services.''.
       (b) Qualified Retirement Planning Services Defined.--
     Section 132 is amended by redesignating subsection (m) as 
     subsection (n) and by inserting after subsection (l) the 
     following:
       ``(m) Qualified Retirement Planning Services.--
       ``(1) In general.--For purposes of this section, the term 
     `qualified retirement planning services' means any retirement 
     planning service provided to an employee and his spouse by an 
     employer maintaining a qualified employer plan.
       ``(2) Nondiscrimination rule.--Subsection (a)(7) shall 
     apply in the case of highly compensated employees only if 
     such services are available on substantially the same terms 
     to each member of the group of employees normally provided 
     education and information regarding the employer's qualified 
     employer plan.
       ``(3) Qualified employer plan.--For purposes of this 
     subsection, the term `qualified employer plan' means a plan, 
     contract, pension, or account described in section 
     219(g)(5).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2000.

     SEC. 1366. REPORTING SIMPLIFICATION.

       (a) Simplified Annual Filing Requirement for Owners and 
     Their Spouses.--
       (1) In general.--The Secretary of the Treasury shall modify 
     the requirements for filing annual returns with respect to 
     one-participant retirement plans to ensure that such plans 
     with assets of $250,000 or less as of the close of the plan 
     year need not file a return for that year.
       (2) One-participant retirement plan defined.--For purposes 
     of this subsection, the term ``one-participant retirement 
     plan'' means a retirement plan that--
       (A) on the first day of the plan year--
       (i) covered only the employer (and the employer's spouse) 
     and the employer owned the entire business (whether or not 
     incorporated), or
       (ii) covered only one or more partners (and their spouses) 
     in a business partnership (including partners in an S or C 
     corporation),
       (B) meets the minimum coverage requirements of section 
     410(b) of the Internal Revenue Code of 1986 without being 
     combined with any other plan of the business that covers the 
     employees of the business,
       (C) does not provide benefits to anyone except the employer 
     (and the employer's spouse) or the partners (and their 
     spouses),
       (D) does not cover a business that is a member of an 
     affiliated service group, a controlled group of corporations, 
     or a group of businesses under common control, and
       (E) does not cover a business that leases employees.
       (3) Other definitions.--Terms used in paragraph (2) which 
     are also used in section 414 of the Internal Revenue Code of 
     1986 shall have the respective meanings given such terms by 
     such section.
       (b) Simplified Annual Filing Requirement for Plans With 
     Fewer Than 25 Employees.--In the case of a retirement plan 
     which covers less than 25 employees on the first day of the 
     plan year and meets the requirements described in 
     subparagraphs (B), (D), and (E) of subsection (a)(2), the 
     Secretary of the Treasury shall provide for the filing of a 
     simplified annual return that is substantially similar to the 
     annual return required to be filed by a one-participant 
     retirement plan.
       (c) Effective Date.--The provisions of this section shall 
     take effect on January 1, 2001.

     SEC. 1367. IMPROVEMENT OF EMPLOYEE PLANS COMPLIANCE 
                   RESOLUTION SYSTEM.

       The Secretary of the Treasury shall continue to update and 
     improve the Employee Plans Compliance Resolution System (or 
     any successor program) giving special attention to--
       (1) increasing the awareness and knowledge of small 
     employers concerning the availability and use of the program,
       (2) taking into account special concerns and circumstances 
     that small employers face with respect to compliance and 
     correction of compliance failures,
       (3) extending the duration of the self-correction period 
     under the Administrative Policy Regarding Self-Correction for 
     significant compliance failures,
       (4) expanding the availability to correct insignificant 
     compliance failures under the Administrative Policy Regarding 
     Self-Correction during audit, and
       (5) assuring that any tax, penalty, or sanction that is 
     imposed by reason of a compliance failure is not excessive 
     and bears a reasonable relationship to the nature, extent, 
     and severity of the failure.

     SEC. 1368. MODIFICATION OF EXCLUSION FOR EMPLOYER-PROVIDED 
                   TRANSIT PASSES.

       (a) In General.--Section 132(f )(3) (relating to cash 
     reimbursements) is amended by striking the last sentence.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years beginning after December 31, 
     1999.

     SEC. 1369. REPEAL OF THE MULTIPLE USE TEST.

       (a) In General.--Paragraph (9) of section 401(m) is amended 
     to read as follows:
       ``(9) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary to carry out the purposes of 
     this subsection and subsection (k), including regulations 
     permitting appropriate aggregation of plans and 
     contributions.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to years beginning after December 31, 2000.

     SEC. 1370. FLEXIBILITY IN NONDISCRIMINATION, COVERAGE, AND 
                   LINE OF BUSINESS RULES.

       (a) Nondiscrimination.--
       (1) In general.--The Secretary of the Treasury shall, by 
     regulation, provide that a plan shall be deemed to satisfy 
     the requirements of section 401(a)(4) of the Internal Revenue 
     Code of 1986 if such plan satisfies the facts and 
     circumstances test under section 401(a)(4) of such Code, as 
     in effect before January 1, 1994, but only if--
       (A) the plan satisfies conditions prescribed by the 
     Secretary to appropriately limit the availability of such 
     test, and
       (B) the plan is submitted to the Secretary for a 
     determination of whether it satisfies such test.

     Subparagraph (B) shall only apply to the extent provided by 
     the Secretary.
       (2) Effective dates.--
       (A) Regulations.--The regulation required by paragraph (1) 
     shall apply to years beginning after December 31, 2000.
       (B) Conditions of availability.--Any condition of 
     availability prescribed by the Secretary under paragraph 
     (1)(A) shall not apply before the first year beginning not 
     less than 120 days after the date on which such condition is 
     prescribed.
       (b) Coverage Test.--
       (1) In general.--Section 410(b)(1) (relating to minimum 
     coverage requirements) is amended by adding at the end the 
     following:
       ``(D) In the case that the plan fails to meet the 
     requirements of subparagraphs (A), (B) and (C), the plan--
       ``(i) satisfies subparagraph (B), as in effect immediately 
     before the enactment of the Tax Reform Act of 1986,
       ``(ii) is submitted to the Secretary for a determination of 
     whether it satisfies the requirement described in clause (i), 
     and
       ``(iii) satisfies conditions prescribed by the Secretary by 
     regulation that appropriately limit the availability of this 
     subparagraph.
     Clause (ii) shall apply only to the extent provided by the 
     Secretary.''.
       (2) Effective dates.--
       (A) In general.--The amendment made by paragraph (1) shall 
     apply to years beginning after December 31, 2000.
       (B) Conditions of availability.--Any condition of 
     availability prescribed by the Secretary under regulations 
     prescribed by the Secretary under section 410(b)(1)(D) of the 
     Internal Revenue Code of 1986 shall not apply before the 
     first year beginning not less than 120 days after the date on 
     which such condition is prescribed.
       (c) Line of Business Rules.--The Secretary of the Treasury 
     shall, on or before December 31, 2000, modify the existing 
     regulations issued under section 414(r) of the Internal 
     Revenue Code of 1986 in order to expand (to the extent that 
     the Secretary determines appropriate) the ability of a 
     pension plan to demonstrate compliance with the line of 
     business requirements based upon the facts and circumstances 
     surrounding the design and operation of the plan, even though 
     the plan is unable to satisfy the mechanical tests currently 
     used to determine compliance.

     SEC. 1371. EXTENSION TO INTERNATIONAL ORGANIZATIONS OF 
                   MORATORIUM ON APPLICATION OF CERTAIN 
                   NONDISCRIMINATION RULES APPLICABLE TO STATE AND 
                   LOCAL PLANS.

       (a) In General.--Subparagraph (G) of section 401(a)(5), 
     subparagraph (H) of section 401(a)(26), subparagraph (G) of 
     section 401(k)(3), and paragraph (2) of section 1505(d) of 
     the Taxpayer Relief Act of 1997 are each amended by inserting 
     ``or by an international organization which is described in 
     section 414(d)'' after ``or instrumentality thereof)''.
       (b) Conforming Amendments.--
       (1) The headings for subparagraph (G) of section 401(a)(5) 
     and subparagraph (H) of section 401(a)(26) are each amended 
     by inserting ``and international organization'' after 
     ``governmental''.
       (2) Subparagraph (G) of section 401(k)(3) is amended by 
     inserting ``State and local governmental and international 
     organization plans.--'' after ``(G)''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to years beginning after December 31, 2000.

                        PART VI--PLAN AMENDMENTS

     SEC. 1381. PROVISIONS RELATING TO PLAN AMENDMENTS.

       (a) In General.--If this section applies to any plan or 
     contract amendment--
       (1) such plan or contract shall be treated as being 
     operated in accordance with the terms of the plan during the 
     period described in subsection (b)(2)(A), and

[[Page S436]]

       (2) such plan shall not fail to meet the requirements of 
     section 411(d)(6) of the Internal Revenue Code of 1986 by 
     reason of such amendment.
       (b) Amendments to Which Section Applies.--
       (1) In general.--This section shall apply to any amendment 
     to any plan or annuity contract which is made--
       (A) pursuant to any amendment made by this title, or 
     pursuant to any regulation issued under this title, and
       (B) on or before the last day of the first plan year 
     beginning on or after January 1, 2003.

     In the case of a government plan (as defined in section 
     414(d) of the Internal Revenue Code of 1986), this paragraph 
     shall be applied by substituting ``2005'' for ``2003''.
       (2) Conditions.--This section shall not apply to any 
     amendment unless--
       (A) during the period--
       (i) beginning on the date the legislative or regulatory 
     amendment described in paragraph (1)(A) takes effect (or in 
     the case of a plan or contract amendment not required by such 
     legislative or regulatory amendment, the effective date 
     specified by the plan), and
       (ii) ending on the date described in paragraph (1)(B) (or, 
     if earlier, the date the plan or contract amendment is 
     adopted),

     the plan or contract is operated as if such plan or contract 
     amendment were in effect, and
       (B) such plan or contract amendment applies retroactively 
     for such period.

                     Subtitle D--Revenue Provisions

     SEC. 1391. MODIFICATION OF INSTALLMENT METHOD AND REPEAL OF 
                   INSTALLMENT METHOD FOR ACCRUAL METHOD 
                   TAXPAYERS.

       (a) Repeal of Installment Method for Accrual Basis 
     Taxpayers.--
       (1) In general.--Subsection (a) of section 453 (relating to 
     installment method) is amended to read as follows:
       ``(a) Use of Installment Method.--
       ``(1) In general.--Except as otherwise provided in this 
     section, income from an installment sale shall be taken into 
     account for purposes of this title under the installment 
     method.
       ``(2) Accrual method taxpayer.--The installment method 
     shall not apply to income from an installment sale if such 
     income would be reported under an accrual method of 
     accounting without regard to this section. The preceding 
     sentence shall not apply to a disposition described in 
     subparagraph (A) or (B) of subsection (l)(2).''.
       (2) Conforming amendments.--Sections 453(d)(1), 453(i)(1), 
     and 453(k) of such Code are each amended by striking ``(a)'' 
     each place it appears and inserting ``(a)(1)''.
       (b) Modification of Pledge Rules.--Paragraph (4) of section 
     453A(d) (relating to pledges, etc., of installment 
     obligations) is amended by adding at the end the following: 
     ``A payment shall be treated as directly secured by an 
     interest in an installment obligation to the extent an 
     arrangement allows the taxpayer to satisfy all or a portion 
     of the indebtedness with the installment obligation.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to sales or other dispositions occurring on or 
     after the date of the enactment of this Act.

     SEC. 1392. MODIFICATION OF ESTIMATED TAX RULES FOR CLOSELY 
                   HELD REAL ESTATE INVESTMENT TRUSTS.

       (a) In General.--Subsection (e) of section 6655 (relating 
     to estimated tax by corporations) is amended by adding at the 
     end the following new paragraph:
       ``(5) Treatment of certain reit dividends.--
       ``(A) In general.--Any dividend received from a closely 
     held real estate investment trust by any person which owns 
     (after application of subsections (d)(5) and (l)(3)(B) of 
     section 856) 10 percent or more (by vote or value) of the 
     stock or beneficial interests in the trust shall be taken 
     into account in computing annualized income installments 
     under paragraph (2) in a manner similar to the manner under 
     which partnership income inclusions are taken into account.
       ``(B) Closely held reit.--For purposes of subparagraph (A), 
     the term `closely held real estate investment trust' means a 
     real estate investment trust with respect to which 5 or fewer 
     persons own (after application of subsections (d)(5) and 
     (l)(3)(B) of section 856) 50 percent or more (by vote or 
     value) of the stock or beneficial interests in the trust.''
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to estimated tax payments due on or after 
     November 15, 1999.

                    TITLE XIV--TECHNICAL AMENDMENTS

     SEC. 1401. DEFINITIONS.

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

     SEC. 1402. ADJUSTMENT OF DOLLAR AMOUNTS.

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

     SEC. 1403. EXTENSION OF TIME.

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

     SEC. 1404. TECHNICAL AMENDMENTS.

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

     SEC. 1405. PENALTY FOR PERSONS WHO NEGLIGENTLY OR 
                   FRAUDULENTLY PREPARE BANKRUPTCY PETITIONS.

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

     SEC. 1406. LIMITATION ON COMPENSATION OF PROFESSIONAL 
                   PERSONS.

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

     SEC. 1407. EFFECT OF CONVERSION.

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

     SEC. 1408. ALLOWANCE OF ADMINISTRATIVE EXPENSES.

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

     SEC. 1409. EXCEPTIONS TO DISCHARGE.

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

     SEC. 1410. EFFECT OF DISCHARGE.

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

     SEC. 1411. PROTECTION AGAINST DISCRIMINATORY TREATMENT.

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

     SEC. 1412. PROPERTY OF THE ESTATE.

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

     SEC. 1413. PREFERENCES.

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

     SEC. 1414. POSTPETITION TRANSACTIONS.

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

     SEC. 1415. DISPOSITION OF PROPERTY OF THE ESTATE.

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

     SEC. 1416. GENERAL PROVISIONS.

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

     SEC. 1417. ABANDONMENT OF RAILROAD LINE.

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

     SEC. 1418. CONTENTS OF PLAN.

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

[[Page S437]]

     SEC. 1419. DISCHARGE UNDER CHAPTER 12.

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

     SEC. 1420. BANKRUPTCY CASES AND PROCEEDINGS.

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

     SEC. 1421. KNOWING DISREGARD OF BANKRUPTCY LAW OR RULE.

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

     SEC. 1422. TRANSFERS MADE BY NONPROFIT CHARITABLE 
                   CORPORATIONS.

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

     SEC. 1423. PROTECTION OF VALID PURCHASE MONEY SECURITY 
                   INTERESTS.

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

     SEC. 1424. EXTENSIONS.

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

     SEC. 1425. BANKRUPTCY JUDGESHIPS.

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

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

     SEC. 1426. FAMILY FISHERMEN.

       (a) Definitions.--Section 101 of title 11, United States 
     Code, is amended--
       (1) by inserting after paragraph (7) the following:
       ``(7A) `commercial fishing operation' includes--
       ``(A) the catching or harvesting of fish, shrimp, lobsters, 
     urchins, seaweed, shellfish, or other aquatic species or 
     products;
       ``(B) for purposes of section 109 and chapter 12, 
     aquaculture activities consisting of raising for market any 
     species or product described in subparagraph (A); and
       ``(C) the transporting by vessel of a passenger for hire 
     (as defined in section 2101 of title 46) who is engaged in 
     recreational fishing;
       ``(7B) `commercial fishing vessel' means a vessel used by a 
     fisherman to carry out a commercial fishing operation;'';
       (2) by inserting after paragraph (19) the following:
       ``(19A) `family fisherman' means--
       ``(A) an individual or individual and spouse engaged in a 
     commercial fishing operation (including aquaculture for 
     purposes of chapter 12)--
       ``(i) whose aggregate debts do not exceed $1,500,000 and 
     not less than 80 percent of whose aggregate noncontingent, 
     liquidated debts (excluding a debt for the principal 
     residence of such individual or such individual and spouse, 
     unless such debt arises out of a commercial fishing 
     operation), on the date the case is filed, arise out of a 
     commercial fishing operation owned or operated by such 
     individual or such individual and spouse; and
       ``(ii) who receive from such commercial fishing operation 
     more than 50 percent of such individual's or such 
     individual's and spouse's gross income for the taxable year 
     preceding the taxable year in which the case concerning such 
     individual or such individual and spouse was filed; or
       ``(B) a corporation or partnership--
       ``(i) in which more than 50 percent of the outstanding 
     stock or equity is held by--

       ``(I) 1 family that conducts the commercial fishing 
     operation; or
       ``(II) 1 family and the relatives of the members of such 
     family, and such family or such relatives conduct the 
     commercial fishing operation; and

       ``(ii)(I) more than 80 percent of the value of its assets 
     consists of assets related to the commercial fishing 
     operation;
       ``(II) its aggregate debts do not exceed $1,500,000 and not 
     less than 80 percent of its aggregate noncontingent, 
     liquidated debts (excluding a debt for 1 dwelling which is 
     owned by such corporation or partnership and which a 
     shareholder or partner maintains as a principal residence, 
     unless such debt arises out of a commercial fishing 
     operation), on the date the case is filed, arise out of a 
     commercial fishing operation owned or operated by such 
     corporation or such partnership; and
       ``(III) if such corporation issues stock, such stock is not 
     publicly traded;''; and
       (3) by inserting after paragraph (19A) the following:
       ``(19B) `family fisherman with regular annual income' means 
     a family fisherman whose annual

[[Page S438]]

     income is sufficiently stable and regular to enable such 
     family fisherman to make payments under a plan under chapter 
     12 of this title;''.
       (b) Who May Be a Debtor.--Section 109(f) of title 11, 
     United States Code, is amended by inserting ``or family 
     fisherman'' after ``family farmer''.
       (c)  Chapter 12.--Chapter 12 of title 11, United States 
     Code, is amended--
       (1) in the chapter heading, by inserting ``OR FISHERMAN'' 
     after ``FAMILY FARMER'';
       (2) in section 1201, by adding at the end the following:
       ``(e)(1) Notwithstanding any other provision of law, for 
     purposes of this subsection, a guarantor of a claim of a 
     creditor under this section shall be treated in the same 
     manner as a creditor with respect to the operation of a stay 
     under this section.
       ``(2) For purposes of a claim that arises from the 
     ownership or operation of a commercial fishing operation, a 
     co-maker of a loan made by a creditor under this section 
     shall be treated in the same manner as a creditor with 
     respect to the operation of a stay under this section.'';
       (3) in section 1203, by inserting ``or commercial fishing 
     operation'' after ``farm'';
       (4) in section 1206, by striking ``if the property is 
     farmland or farm equipment'' and inserting ``if the property 
     is farmland, farm equipment, or property of a commercial 
     fishing operation (including a commercial fishing vessel)''; 
     and
       (5) by adding at the end the following:

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

       ``(a)(1) Notwithstanding any other provision of law, except 
     as provided in subsection (c), with respect to any commercial 
     fishing vessel of a family fisherman, the debts of that 
     family fisherman shall be treated in the manner prescribed in 
     paragraph (2).
       ``(2)(A) For purposes of this chapter, a claim for a lien 
     described in subsection (b) for a commercial fishing vessel 
     of a family fisherman that could, but for this subsection, be 
     subject to a lien under otherwise applicable maritime law, 
     shall be treated as an unsecured claim.
       ``(B) Subparagraph (A) applies to a claim for a lien 
     resulting from a debt of a family fisherman incurred on or 
     after the date of enactment of this chapter.
       ``(b) A lien described in this subsection is--
       ``(1) a maritime lien under subchapter III of chapter 313 
     of title 46 without regard to whether that lien is recorded 
     under section 31343 of title 46; or
       ``(2) a lien under applicable State law (or the law of a 
     political subdivision thereof).
       ``(c) Subsection (a) shall not apply to--
       ``(1) a claim made by a member of a crew or a seaman 
     including a claim made for--
       ``(A) wages, maintenance, or cure; or
       ``(B) personal injury; or
       ``(2) a preferred ship mortgage that has been perfected 
     under subchapter II of chapter 313 of title 46.
       ``(d) For purposes of this chapter, a mortgage described in 
     subsection (c)(2) shall be treated as a secured claim.''.
       (d) Clerical Amendments.--
       (1) Table of chapters.--In the table of chapters for title 
     11, United States Code, the item relating to chapter 12, is 
     amended to read as follows:

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

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

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

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

     SEC. 1427. COMPENSATING TRUSTEES.

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

     SEC. 1428. AMENDMENT TO SECTION 362 OF TITLE 11, UNITED 
                   STATES CODE.

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

     SEC. 1429. PROVISION OF ELECTRONIC FTC PAMPHLET WITH 
                   ELECTRONIC CREDIT CARD APPLICATIONS AND 
                   SOLICITATIONS.

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

     SEC. 1430. NO BANKRUPTCY FOR INSOLVENT POLITICAL COMMITTEES.

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

     SEC. 1431. FEDERAL ELECTION LAW FINES AND PENALTIES AS 
                   NONDISCHARGEABLE DEBT.

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

     SEC. 1432. PROHIBITION ON CERTAIN RETROACTIVE FINANCE 
                   CHARGES.

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

     SEC. 1433. SENSE OF SENATE CONCERNING CREDIT WORTHINESS.

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

     SEC. 1434. JUDICIAL EDUCATION.

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

     SEC. 1435. UNITED STATES TRUSTEE PROGRAM FILING FEE INCREASE.

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

[[Page S439]]

       (1) in paragraph (5), by striking ``and'' at the end;
       (2) in paragraph (6), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following:
       ``(7) the invoice price of any goods received by the debtor 
     within 20 days of the date of filing of a case under this 
     title where the goods have been sold to the debtor in the 
     ordinary course of such seller's business.''.

     SEC. 1436. PROVIDING REQUESTED TAX DOCUMENTS TO THE COURT.

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

     SEC. 1437. DEFINITION OF FAMILY FARMER.

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

     SEC. 1438. ENCOURAGING CREDITWORTHINESS.

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

     SEC. 1439. PROPERTY NO LONGER SUBJECT TO REDEMPTION.

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

     SEC. 1440. AVAILABILITY OF TOLL-FREE ACCESS TO INFORMATION.

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

      TITLE XV--GENERAL EFFECTIVE DATE; APPLICATION OF AMENDMENTS

     SEC. 1501. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

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

        TITLE XVI--FINANCIAL INSTITUTIONS INSOLVENCY IMPROVEMENT

     SEC. 1601. SHORT TITLE.

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

     SEC. 1602. TREATMENT OF CERTAIN AGREEMENTS BY CONSERVATORS OR 
                   RECEIVERS OF INSURED DEPOSITORY INSTITUTIONS.

       (a) Definition of Qualified Financial Contract.--Section 
     11(e)(8)(D)(i) of the Federal Deposit Insurance Act (12 
     U.S.C. 1821(e)(8)(D)(i)) is amended by inserting ``, 
     resolution, or order'' after ``any similar agreement that the 
     Corporation determines by regulation''.
       (b) Definition of Securities Contract.--Section 
     11(e)(8)(D)(ii) of the Federal Deposit Insurance Act (12 
     U.S.C. 1821(e)(8)(D)(ii)) is amended to read as follows:
       ``(ii) Securities contract.--The term `securities 
     contract'--

       ``(I) means a contract for the purchase, sale, or loan of a 
     security, a certificate of deposit, a mortgage loan, or any 
     interest in a mortgage loan, a group or index of securities, 
     certificates of deposit, or mortgage loans or interests 
     therein (including any interest therein or based on the value 
     thereof) or any option on any of the foregoing, including any 
     option to purchase or sell any such security, certificate of 
     deposit, loan, interest, group or index, or option;
       ``(II) does not include any purchase, sale, or repurchase 
     obligation under a participation in a commercial mortgage 
     loan unless the Corporation determines by regulation, 
     resolution, or order to include any such agreement within the 
     meaning of such term;
       ``(III) means any option entered into on a national 
     securities exchange relating to foreign currencies;
       ``(IV) means the guarantee by or to any securities clearing 
     agency of any settlement of cash, securities, certificates of 
     deposit, mortgage loans or interests therein, group or index 
     of securities, certificates of deposit, or mortgage loans or 
     interests therein (including any interest therein or based on 
     the value thereof) or option on any of the foregoing, 
     including any option to purchase or sell any such security, 
     certificate of deposit, loan, interest, group or index or 
     option;
       ``(V) means any margin loan;
       ``(VI) means any other agreement or transaction that is 
     similar to any agreement or transaction referred to in this 
     clause (other than subclause (II));
       ``(VII) means any combination of the agreements or 
     transactions referred to in this clause (other than subclause 
     (II));
       ``(VIII) means any option to enter into any agreement or 
     transaction referred to in this clause (other than subclause 
     (II));
       ``(IX) means a master agreement that provides for an 
     agreement or transaction referred to in subclause (I), (III), 
     (IV), (V), (VI), (VII), or (VIII), together with all 
     supplements to any such master agreement, without regard to 
     whether the master agreement provides for an agreement or 
     transaction that is not a securities contract under this 
     clause, except that the master agreement shall be considered 
     to be a securities contract under this clause only with 
     respect to each agreement or transaction under the master 
     agreement that is referred to in subclause (I), (III), (IV), 
     (V), (VI), (VII), or (VIII); and
       ``(X) means any security agreement or arrangement or other 
     credit enhancement related to any agreement or transaction 
     referred to in this clause (other than subclause (II)).''.

       (c) Definition of Commodity Contract.--Section 
     11(e)(8)(D)(iii) of the Federal Deposit Insurance Act (12 
     U.S.C. 1821(e)(8)(D)(iii)) is amended to read as follows:
       ``(iii) Commodity contract.--The term `commodity contract' 
     means--

       ``(I) with respect to a futures commission merchant, a 
     contract for the purchase or sale of a commodity for future 
     delivery on, or subject to the rules of, a contract market or 
     board of trade;
       ``(II) with respect to a foreign futures commission 
     merchant, a foreign future;
       ``(III) with respect to a leverage transaction merchant, a 
     leverage transaction;
       ``(IV) with respect to a clearing organization, a contract 
     for the purchase or sale of a commodity for future delivery 
     on, or subject to the rules of, a contract market or board of 
     trade that is cleared by such clearing organization, or 
     commodity option traded on, or subject to the rules of, a 
     contract market or board of trade that is cleared by such 
     clearing organization;
       ``(V) with respect to a commodity options dealer, a 
     commodity option;
       ``(VI) any other agreement or transaction that is similar 
     to any agreement or transaction referred to in this clause;

       ``(VII) any combination of the agreements or transactions 
     referred to in this clause;
       ``(VIII) any option to enter into any agreement or 
     transaction referred to in this clause;
       ``(IX) a master agreement that provides for an agreement or 
     transaction referred to in subclause (I), (II), (III), (IV), 
     (V), (VI), (VII), or (VIII), together with all supplements to 
     any such master agreement, without regard to whether the 
     master agreement provides for an agreement or transaction 
     that is not a commodity contract under this clause, except 
     that the master agreement shall be considered to be a 
     commodity contract under this clause only with respect to 
     each agreement or transaction under the master agreement that 
     is referred to in subclause (I), (II), (III), (IV), (V), 
     (VI), (VII), or (VIII); or
       ``(X) a security agreement or arrangement or other credit 
     enhancement related to any agreement or transaction referred 
     to in this clause.''.

       (d) Definition of Forward Contract.--Section 
     11(e)(8)(D)(iv) of the Federal Deposit Insurance Act (12 
     U.S.C. 1821(e)(8)(D)(iv)) is amended to read as follows:
       ``(iv) Forward contract.--The term `forward contract' 
     means--

       ``(I) a contract (other than a commodity contract) for the 
     purchase, sale, or transfer of a commodity or any similar 
     good, article, service, right, or interest which is presently 
     or in the future becomes the subject of dealing in the 
     forward contract trade, or product or byproduct thereof, with 
     a maturity date that is more than 2 days after the date on 
     which the contract is entered into, including a repurchase 
     agreement, reverse repurchase agreement, consignment, lease, 
     swap, hedge transaction, deposit, loan, option, allocated 
     transaction, unallocated transaction, or any other similar 
     agreement;
       ``(II) any combination of agreements or transactions 
     referred to in subclauses (I) and (III);
       ``(III) any option to enter into any agreement or 
     transaction referred to in subclause (I) or (II);

[[Page S440]]

       ``(IV) a master agreement that provides for an agreement or 
     transaction referred to in subclauses (I), (II), or (III), 
     together with all supplements to any such master agreement, 
     without regard to whether the master agreement provides for 
     an agreement or transaction that is not a forward contract 
     under this clause, except that the master agreement shall be 
     considered to be a forward contract under this clause only 
     with respect to each agreement or transaction under the 
     master agreement that is referred to in subclause (I), (II), 
     or (III); or
       ``(V) a security agreement or arrangement or other credit 
     enhancement related to any agreement or transaction referred 
     to in subclause (I), (II), (III), or (IV).''.

       (e) Definition of Repurchase Agreement and Reverse 
     Repurchase Agreement.--Section 11(e)(8)(D)(v) of the Federal 
     Deposit Insurance Act (12 U.S.C. 1821(e)(8)(D)(v)) is amended 
     to read as follows:
       ``(v) Repurchase agreement; reverse repurchase agreement.--
     The terms `repurchase agreement' and `reverse repurchase 
     agreement'--

       ``(I) mean an agreement, including related terms, which 
     provides for the transfer of 1 or more certificates of 
     deposit, mortgage-related securities (as such term is defined 
     in the Securities Exchange Act of 1934), mortgage loans, 
     interests in mortgage-related securities or mortgage loans, 
     eligible bankers' acceptances, qualified foreign government 
     securities or securities that are direct obligations of, or 
     that are fully guaranteed by, the United States or any agency 
     of the United States against the transfer of funds by the 
     transferee of such certificates of deposit, eligible bankers' 
     acceptances, securities, loans, or interests with a 
     simultaneous agreement by such transferee to transfer to the 
     transferor thereof certificates of deposit, eligible bankers' 
     acceptances, securities, loans, or interests as described in 
     this subclause, at a date certain that is not later than 1 
     year after the date of such transfers or on demand, against 
     the transfer of funds, or any other similar agreement;
       ``(II) does not include any repurchase obligation under a 
     participation in a commercial mortgage loan unless the 
     Corporation determines by regulation, resolution, or order to 
     include any such participation within the meaning of such 
     term;
       ``(III) means any combination of agreements or transactions 
     referred to in subclauses (I) and (IV);
       ``(IV) means any option to enter into any agreement or 
     transaction referred to in subclause (I) or (III);
       ``(V) means a master agreement that provides for an 
     agreement or transaction referred to in subclause (I), (III), 
     or (IV), together with all supplements to any such master 
     agreement, without regard to whether the master agreement 
     provides for an agreement or transaction that is not a 
     repurchase agreement under this clause, except that the 
     master agreement shall be considered to be a repurchase 
     agreement under this subclause only with respect to each 
     agreement or transaction under the master agreement that is 
     referred to in subclause (I), (III), or (IV); and
       ``(VI) means a security agreement or arrangement or other 
     credit enhancement related to any agreement or transaction 
     referred to in subclause (I), (III), (IV), or (V).

     For purposes of this clause, the term `qualified foreign 
     government security' means a security that is a direct 
     obligation of, or that is fully guaranteed by, the central 
     government of a member of the Organization for Economic 
     Cooperation and Development (as determined by regulation or 
     order adopted by the appropriate Federal banking 
     authority).''.
       (f) Definition of Swap Agreement.--The Federal Deposit 
     Insurance Act (12 U.S.C. 1821(e)(8)(D)(vi)) is amended to 
     read as follows:
       ``(vi) Swap agreement.--The term `swap agreement'--

       ``(I) means any agreement, including the terms and 
     conditions incorporated by reference in any such agreement, 
     that is--

       ``(aa) an interest rate swap, option, future, or forward 
     agreement, including a rate floor, rate cap, rate collar, 
     cross-currency rate swap, and basis swap;
       ``(bb) a spot, same day-tomorrow, tomorrow-next, forward, 
     or other foreign exchange or precious metals agreement;
       ``(cc) a currency swap, option, future, or forward 
     agreement;
       ``(dd) an equity index or equity swap, option, future, or 
     forward agreement;
       ``(ee) a debt index or debt swap, option, future, or 
     forward agreement;
       ``(ff) a credit spread or credit swap, option, future, or 
     forward agreement; or
       ``(gg) a commodity index or commodity swap, option, future, 
     or forward agreement;

       ``(II) means any agreement or transaction that is similar 
     to any other agreement or transaction referred to in this 
     clause, that is presently, or in the future becomes, 
     regularly entered into in the swap market (including terms 
     and conditions incorporated by reference in such agreement), 
     and that is a forward, swap, future, or option on 1 or more 
     rates, currencies, commodities, equity securities or other 
     equity instruments, debt securities or other debt 
     instruments, or economic indices or measures of economic risk 
     or value;
       ``(III) means any combination of agreements or transactions 
     referred to in this clause;
       ``(IV) means any option to enter into any agreement or 
     transaction referred to in this clause;
       ``(V) means a master agreement that provides for an 
     agreement or transaction referred to in subclause (I), (II), 
     (III), or (IV), together with all supplements to any such 
     master agreement, without regard to whether the master 
     agreement contains an agreement or transaction that is not a 
     swap agreement under this clause, except that the master 
     agreement shall be considered to be a swap agreement under 
     this clause only with respect to each agreement or 
     transaction under the master agreement that is referred to in 
     subclause (I), (II), (III), or (IV);
       ``(VI) means any security agreement or arrangement or other 
     credit enhancement related to any agreements or transactions 
     referred to in subparagraph (I), (II), (III), or (IV); and
       ``(VII) is applicable for purposes of this Act only, and 
     shall not be construed or applied so as to challenge or 
     affect the characterization, definition, or treatment of any 
     swap agreement under any other statute, regulation, or rule, 
     including the Securities Act of 1933, the Securities Exchange 
     Act of 1934, the Public Utility Holding Company Act of 1935, 
     the Trust Indenture Act of 1939, the Investment Company Act 
     of 1940, the Investment Advisers Act of 1940, the Securities 
     Investor Protection Act of 1970, the Commodity Exchange Act, 
     and the regulations promulgated by the Securities and 
     Exchange Commission or the Commodity Futures Trading 
     Commission.''.

       (g) Definition of Transfer.--Section 11(e)(8)(D)(viii) of 
     the Federal Deposit Insurance Act (12 U.S.C. 
     1821(e)(8)(D)(viii)) is amended to read as follows:
       ``(viii) Transfer.--The term `transfer' means every mode, 
     direct or indirect, absolute or conditional, voluntary or 
     involuntary, of disposing of or parting with property or with 
     an interest in property, including retention of title as a 
     security interest and foreclosure of the depository 
     institutions's equity of redemption.''.
       (h) Treatment of Qualified Financial Contracts.--Section 
     11(e)(8) of the Federal Deposit Insurance Act (12 U.S.C. 
     1821(e)(8)) is amended--
       (1) in subparagraph (A), by striking ``paragraph (10)'' and 
     inserting ``paragraphs (9) and (10)'';
       (2) in subparagraph (A)(i), by striking ``to cause the 
     termination or liquidation'' and inserting ``such person has 
     to cause the termination, liquidation, or acceleration'';
       (3) by striking clause (ii) of subparagraph (A) and 
     inserting the following:
       ``(ii) any right under any security agreement or 
     arrangement or other credit enhancement related to 1 or more 
     qualified financial contracts described in clause (i); or''; 
     and
       (4) by striking clause (ii) of subparagraph (E) and 
     inserting the following:
       ``(ii) any right under any security agreement or 
     arrangement or other credit enhancement related to 1 or more 
     qualified financial contracts described in clause (i); or''.
       (i) Avoidance of Transfers.--Section 11(e)(8)(C)(i) of the 
     Federal Deposit Insurance Act (12 U.S.C. 1821(e)(8)(C)(i)) is 
     amended by inserting ``section 5242 of the Revised Statutes 
     (12 U.S.C. 91), or any other Federal or State law relating to 
     the avoidance of preferential or fraudulent transfers,'' 
     before ``the Corporation''.

     SEC. 1603. AUTHORITY OF THE CORPORATION WITH RESPECT TO 
                   FAILED AND FAILING INSTITUTIONS.

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

     SEC. 1604. AMENDMENTS RELATING TO TRANSFERS OF QUALIFIED 
                   FINANCIAL CONTRACTS.

       (a) Transfers of Qualified Financial Contracts to Financial 
     Institutions.--Section 11(e)(9) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1821(e)(9)) is amended to read as 
     follows:
       ``(9) Transfer of qualified financial contracts.--
       ``(A) In general.--In making any transfer of assets or 
     liabilities of a depository institution in default which 
     includes any qualified financial contract, the conservator or 
     receiver for such depository institution shall either--
       ``(i) transfer to 1 financial institution, other than a 
     financial institution for which a conservator, receiver, 
     trustee in bankruptcy, or other legal custodian has been 
     appointed or which is otherwise the subject of a bankruptcy 
     or insolvency proceeding--

       ``(I) all qualified financial contracts between any person 
     or any affiliate of such person and the depository 
     institution in default;

[[Page S441]]

       ``(II) all claims of such person or any affiliate of such 
     person against such depository institution under any such 
     contract (other than any claim which, under the terms of any 
     such contract, is subordinated to the claims of general 
     unsecured creditors of such institution);
       ``(III) all claims of such depository institution against 
     such person or any affiliate of such person under any such 
     contract; and
       ``(IV) all property securing or any other credit 
     enhancement for any contract described in subclause (I) or 
     any claim described in subclause (II) or (III) under any such 
     contract; or

       ``(ii) transfer none of the qualified financial contracts, 
     claims, property, or other credit enhancement referred to in 
     clause (i) (with respect to such person and any affiliate of 
     such person).
       ``(B) Transfer to foreign bank, foreign financial 
     institution, or branch or agency of a foreign bank or 
     financial institution.--In transferring any qualified 
     financial contract and related claims and property pursuant 
     to subparagraph (A)(i), the conservator or receiver for the 
     depository institution shall not make such transfer to a 
     foreign bank, financial institution organized under the laws 
     of a foreign country, or a branch or agency of a foreign bank 
     or financial institution unless, under the law applicable to 
     such bank, financial institution, branch, or agency, to the 
     qualified financial contract, and to any netting contract, 
     any security agreement or arrangement or other credit 
     enhancement related to 1 or more qualified financial 
     contracts the contractual rights of the parties to such 
     qualified financial contracts, netting contracts, security 
     agreements, or arrangements, or other credit enhancements are 
     enforceable substantially to the same extent as permitted 
     under this section.
       ``(C) Transfer of contract subject to the rules of a 
     clearing organization.--If a conservator or receiver 
     transfers any qualified financial contract and related 
     claims, property, and credit enhancements pursuant to 
     subparagraph (A)(i) and such contract is subject to the rules 
     of a clearing organization, the clearing organization shall 
     not be required to accept the transferee as a member by 
     virtue of the transfer.
       ``(D) Definition.--For purposes of this paragraph, the term 
     `financial institution' means a broker or dealer, a 
     depository institution, a futures commission merchant, or any 
     other institution that the Corporation determines, by 
     regulation, to be a financial institution.''.
       (b) Notice to Qualified Financial Contract 
     Counterparties.--Section 11(e)(10)(A) of the Federal Deposit 
     Insurance Act (12 U.S.C. 1821(e)(10)(A)) is amended by 
     striking the flush material immediately following clause (ii) 
     and inserting the following:
     ``the conservator or receiver shall notify any person who is 
     a party to any such contract of such transfer by 5:00 p.m. 
     (eastern time) on the business day following the date of the 
     appointment of the receiver in the case of a receivership, or 
     the business day following such transfer in the case of a 
     conservatorship.''.
       (c) Rights Against Receiver and Treatment of Bridge 
     Banks.--Section 11(e)(10) of the Federal Deposit Insurance 
     Act (12 U.S.C. 1821(e)(10)) is amended--
       (1) by redesignating subparagraph (B) as subparagraph (D); 
     and
       (2) by inserting after subparagraph (A) the following:
       ``(B) Certain rights not enforceable.--
       ``(i) Receivership.--A person who is a party to a qualified 
     financial contract with an insured depository institution may 
     not exercise any right such person has to terminate, 
     liquidate, or net such contract under paragraph (8)(A) or 
     section 403 or 404 of the Federal Deposit Insurance 
     Corporation Improvement Act of 1991, solely by reason of or 
     incidental to the appointment of a receiver for the 
     depository institution (or the insolvency or financial 
     condition of the depository institution for which the 
     receiver has been appointed)--

       ``(I) until 5:00 p.m. (eastern time) on the business day 
     following the date of the appointment of the receiver; or
       ``(II) after the person has received notice that the 
     contract has been transferred pursuant to paragraph (9)(A).

       ``(ii) Conservatorship.--A person who is a party to a 
     qualified financial contract with an insured depository 
     institution may not exercise any right such person has to 
     terminate, liquidate, or net such contract under paragraph 
     (8)(E) or section 403 or 404 of the Federal Deposit Insurance 
     Corporation Improvement Act of 1991, solely by reason of or 
     incidental to the appointment of a conservator for the 
     depository institution (or the insolvency or financial 
     condition of the depository institution for which the 
     conservator has been appointed).
       ``(iii) Notice.--For purposes of this paragraph, the 
     Corporation as receiver or conservator of an insured 
     depository institution shall be deemed to have notified a 
     person who is a party to a qualified financial contract with 
     such depository institution if the Corporation has taken 
     steps reasonably calculated to provide notice to such person 
     by the time specified in subparagraph (A).
       ``(C) Treatment of bridge banks.--A financial institution 
     for which a conservator, receiver, trustee in bankruptcy, or 
     other legal custodian has been appointed or that is otherwise 
     the subject of a bankruptcy or insolvency proceeding for 
     purposes of subsection (e)(9) does not include--
       ``(i) a bridge bank; or
       ``(ii) a depository institution organized by the 
     Corporation, for which a conservator is appointed either--

       ``(I) immediately upon the organization of the institution; 
     or
       ``(II) at the time of a purchase and assumption transaction 
     between such institution and the Corporation as receiver for 
     a depository institution in default.''.

     SEC. 1605. AMENDMENTS RELATING TO DISAFFIRMANCE OR 
                   REPUDIATION OF QUALIFIED FINANCIAL CONTRACTS.

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

     SEC. 1606. CLARIFYING AMENDMENT RELATING TO MASTER 
                   AGREEMENTS.

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

     SEC. 1607. FEDERAL DEPOSIT INSURANCE CORPORATION IMPROVEMENT 
                   ACT OF 1991.

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

[[Page S442]]

     Federal Deposit Insurance Corporation Improvement Act of 1991 
     (12 U.S.C. 4404) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) General Rule.--Notwithstanding any other provision of 
     Federal or State law (other than paragraphs (8)(E), (8)(F), 
     and (10)(B) of section 11(e) of the Federal Deposit Insurance 
     Act or any order authorized under section 5(b)(2) of the 
     Securities Investor Protection Act of 1970) the covered 
     contractual payment obligations and the covered contractual 
     payment entitlements of a member of a clearing organization 
     to and from all other members of the clearing organization 
     shall be netted in accordance with, and subject to the 
     conditions of, the terms of any applicable netting contract 
     (except as provided in section 561(b)(2) of title 11, United 
     States Code).''; and
       (2) by adding at the end the following:
       ``(h) Enforceability of Security Agreements.--The 
     provisions of any security agreement or arrangement or other 
     credit enhancement related to 1 or more netting contracts 
     between any 2 members of a clearing organization shall be 
     enforceable in accordance with their terms (except as 
     provided in section 561(b)(2) of title 11, United States 
     Code) and shall not be stayed, avoided, or otherwise limited 
     by any State or Federal law (other than paragraphs (8)(E), 
     (8)(F), and (10)(B) of section 11(e) of the Federal Deposit 
     Insurance Act and section 5(b)(2) of the Securities Investor 
     Protection Act of 1970).''.
       (d) Enforceability of Contracts With Uninsured National 
     Banks and Uninsured Federal Branches and Agencies.--The 
     Federal Deposit Insurance Corporation Improvement Act of 1991 
     (12 U.S.C. 4401 et seq.) is amended by adding at the end the 
     following:

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

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

     SEC. 1608. RECORDKEEPING REQUIREMENTS.

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

     SEC. 1609. EXEMPTIONS FROM CONTEMPORANEOUS EXECUTION 
                   REQUIREMENT.

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

     SEC. 1610. SIPC STAY.

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

       ``(I) a right set forth in a rule or bylaw of a national 
     securities exchange, a national securities association, or a 
     securities clearing agency;
       ``(II) a right set forth in a bylaw of a clearing 
     organization or contract market or in a resolution of the 
     governing board thereof; and
       ``(III) a right, whether or not in writing, arising under 
     common law, under law merchant, or by reason of normal 
     business practice.''.

     SEC. 1611. FEDERAL RESERVE COLLATERAL REQUIREMENTS.

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

     SEC. 1612. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

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

      TITLE XVII--METHAMPHETAMINE AND OTHER CONTROLLED SUBSTANCES

     SEC. 1701. SHORT TITLE.

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

     Subtitle A--Methamphetamine Production, Trafficking, and Abuse

                     CHAPTER 1--CRIMINAL PENALTIES

     SEC. 1711. ENHANCED PUNISHMENT OF AMPHETAMINE LABORATORY 
                   OPERATORS.

       (a) Amendment to Federal Sentencing Guidelines.--Pursuant 
     to its authority under section 994(p) of title 28, United 
     States Code, the United States Sentencing Commission shall 
     amend the Federal sentencing guidelines in accordance with 
     this section with respect to any offense relating to the 
     manufacture, importation, exportation, or trafficking in 
     amphetamine (including an attempt or conspiracy to do any of 
     the foregoing) in violation of--
       (1) the Controlled Substances Act (21 U.S.C. 801 et seq.);
       (2) the Controlled Substances Import and Export Act (21 
     U.S.C. 951 et seq.); or
       (3) the Maritime Drug Law Enforcement Act (46 U.S.C. App. 
     1901 et seq.).
       (b) General Requirement.--In carrying out this section, the 
     United States Sentencing Commission shall, with respect to 
     each offense described in subsection (a) relating to 
     amphetamine--
       (1) review and amend its guidelines to provide for 
     increased penalties such that those penalties are comparable 
     to the base offense level for methamphetamine; and
       (2) take any other action the Commission considers 
     necessary to carry out this subsection.
       (c) Additional Requirements.--In carrying out this section, 
     the United States Sentencing Commission shall ensure that the 
     sentencing guidelines for offenders convicted of offenses 
     described in subsection (a) reflect the heinous nature of 
     such offenses, the need for aggressive law enforcement action 
     to fight such offenses, and the extreme dangers associated 
     with unlawful activity involving amphetamines, including--
       (1) the rapidly growing incidence of amphetamine abuse and 
     the threat to public safety that such abuse poses;
       (2) the high risk of amphetamine addiction;
       (3) the increased risk of violence associated with 
     amphetamine trafficking and abuse; and

[[Page S443]]

       (4) the recent increase in the illegal importation of 
     amphetamine and precursor chemicals.
       (d) Emergency Authority to Sentencing Commission.--The 
     United States Sentencing Commission shall promulgate 
     amendments pursuant to this section as soon as practicable 
     after the date of the enactment of this Act in accordance 
     with the procedure set forth in section 21(a) of the 
     Sentencing Act of 1987 (Public Law 100-182), as though the 
     authority under that Act had not expired.

     SEC. 1712. ENHANCED PUNISHMENT OF AMPHETAMINE OR 
                   METHAMPHETAMINE LABORATORY OPERATORS.

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

     SEC. 1713. MANDATORY RESTITUTION FOR VIOLATIONS OF CONTROLLED 
                   SUBSTANCES ACT AND CONTROLLED SUBSTANCES IMPORT 
                   AND EXPORT ACT RELATING TO AMPHETAMINE AND 
                   METHAMPHETAMINE.

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

     SEC. 1714. METHAMPHETAMINE PARAPHERNALIA.

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

                  CHAPTER 2--ENHANCED LAW ENFORCEMENT

     SEC. 1721. ENVIRONMENTAL HAZARDS ASSOCIATED WITH ILLEGAL 
                   MANUFACTURE OF AMPHETAMINE AND METHAMPHETAMINE.

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

     SEC. 1722. REDUCTION IN RETAIL SALES TRANSACTION THRESHOLD 
                   FOR NON-SAFE HARBOR PRODUCTS CONTAINING 
                   PSEUDOEPHEDRINE OR PHENLYPROPANOLAMINE.

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

     SEC. 1723. TRAINING FOR DRUG ENFORCEMENT ADMINISTRATION AND 
                   STATE AND LOCAL LAW ENFORCEMENT PERSONNEL 
                   RELATING TO CLANDESTINE LABORATORIES.

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

[[Page S444]]

     such personnel to provide recertification and awareness 
     training relating to clandestine laboratories to additional 
     State and local law enforcement personnel.
       (c) Authorization of Appropriations.--There are authorized 
     to be appropriated for each of fiscal years 2000, 2001, and 
     2002 amounts as follows:
       (1) $1,500,000 to carry out the program described in 
     subsection (b)(1).
       (2) $3,000,000 to carry out the program described in 
     subsection (b)(2).
       (3) $1,000,000 to carry out the program described in 
     subsection (b)(3).

     SEC. 1724. COMBATING METHAMPHETAMINE AND AMPHETAMINE IN HIGH 
                   INTENSITY DRUG TRAFFICKING AREAS.

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

     SEC. 1725. COMBATING AMPHETAMINE AND METHAMPHETAMINE 
                   MANUFACTURING AND TRAFFICKING.

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

               CHAPTER 3--ABUSE PREVENTION AND TREATMENT

     SEC. 1731. EXPANSION OF METHAMPHETAMINE RESEARCH.

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

     SEC. 1732. METHAMPHETAMINE AND AMPHETAMINE TREATMENT 
                   INITIATIVE BY CENTER FOR SUBSTANCE ABUSE 
                   TREATMENT.

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


         ``methamphetamine and amphetamine treatment initiative

       ``Sec. 514. (a) Grants.--
       ``(1) Authority to make grants.--The Director of the Center 
     for Substance Abuse Treatment may make grants to States and 
     Indian tribes recognized by the United States that have a 
     high rate, or have had a rapid increase, in methamphetamine 
     or amphetamine abuse or addiction in order to permit such 
     States and Indian tribes to expand activities in connection 
     with the treatment of methamphetamine or amphetamine abuser 
     or addiction in the specific geographical areas of such 
     States or Indian tribes, as the case may be, where there is 
     such a rate or has been such an increase.
       ``(2) Recipients.--Any grants under paragraph (1) shall be 
     directed to the substance abuse

[[Page S445]]

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

     SEC. 1733. EXPANSION OF METHAMPHETAMINE ABUSE PREVENTION 
                   EFFORTS.

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

     SEC. 1734. STUDY OF METHAMPHETAMINE TREATMENT.

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

                           CHAPTER 4--REPORTS

     SEC. 1741. REPORTS ON CONSUMPTION OF METHAMPHETAMINE AND 
                   OTHER ILLICIT DRUGS IN RURAL AREAS, 
                   METROPOLITAN AREAS, AND CONSOLIDATED 
                   METROPOLITAN AREAS.

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

     SEC. 1742. REPORT ON DIVERSION OF ORDINARY OVER-THE-COUNTER 
                   PSEUDOEPHEDRINE AND PHENYLPROPANOLAMINE 
                   PRODUCTS.

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

              Subtitle B--Controlled Substances Generally

                      CHAPTER 1--CRIMINAL MATTERS

     SEC. 1751. ENHANCED PUNISHMENT FOR TRAFFICKING IN LIST I 
                   CHEMICALS.

       (a) Amendments to Federal Sentencing Guidelines.--Pursuant 
     to its authority under section 994(p) of title 28, United 
     States, the United States Sentencing Commission shall amend 
     the Federal sentencing guidelines in accordance with this 
     section with respect to any violation of paragraph (1) or (2) 
     of section 401(d) of the Controlled Substances Act (21 U.S.C. 
     841(d)) involving a list I chemical and any violation of 
     paragraph (1) or (3) of section 1010(d) of the Controlled 
     Substance Import and Export Act (21 U.S.C. 960(d)) involving 
     a list I chemical.
       (b) Ephedrine, Phenylpropanolamine, and Pseudoephedrine.--
       (1) In general.--In carrying this section, the United 
     States Sentencing Commission shall, with respect to each 
     offense described in subsection (a) involving ephedrine, 
     phenylpropanolamine, or pseudoephedrine (including their 
     salts, optical isomers, and salts of optical isomers), review 
     and amend its guidelines to provide for increased penalties 
     such that those penalties corresponded to the quantity of 
     controlled substance that could reasonably have been 
     manufactured using the quantity of ephedrine, 
     phenylpropanolamine, or pseudoephedrine possessed or 
     distributed.
       (2) Conversion ratios.--For the purposes of the amendments 
     made by this subsection, the quantity of controlled substance 
     that could reasonably have been manufactured shall be 
     determined by using a table of manufacturing conversion 
     ratios for ephedrine, phenylpropanolamine, and 
     pseudoephedrine, which table shall be established by the 
     Sentencing Commission based on scientific, law enforcement, 
     and other data

[[Page S446]]

     the Sentencing Commission considers appropriate.
       (c) Other List I Chemicals.--In carrying this section, the 
     United States Sentencing Commission shall, with respect to 
     each offense described in subsection (a) involving any list I 
     chemical other than ephedrine, phenylpropanolamine, or 
     pseudoephedrine, review and amend its guidelines to provide 
     for increased penalties such that those penalties reflect the 
     dangerous nature of such offenses, the need for aggressive 
     law enforcement action to fight such offenses, and the 
     extreme dangers associated with unlawful activity involving 
     methamphetamine and amphetamine, including--
       (1) the rapidly growing incidence of controlled substance 
     manufacturing;
       (2) the extreme danger inherent in manufacturing controlled 
     substances;
       (3) the threat to public safety posed by manufacturing 
     controlled substances; and
       (4) the recent increase in the importation, possession, and 
     distribution of list I chemicals for the purpose of 
     manufacturing controlled substances.
       (d) Emergency Authority to Sentencing Commission.--The 
     United States Sentencing Commission shall promulgate 
     amendments pursuant to this section as soon as practicable 
     after the date of the enactment of this Act in accordance 
     with the procedure set forth in section 21(a) of the 
     Sentencing Act of 1987 (Public Law 100-182), as though the 
     authority under that Act had not expired.

     SEC. 1752. MAIL ORDER REQUIREMENTS.

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

     SEC. 1753. INCREASED PENALTIES FOR DISTRIBUTING DRUGS TO 
                   MINORS.

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

     SEC. 1754. INCREASED PENALTY FOR DRUG TRAFFICKING IN OR NEAR 
                   A SCHOOL OR OTHER PROTECTED LOCATION.

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

     SEC. 1755. ADVERTISEMENTS FOR DRUG PARAPHERNALIA AND SCHEDULE 
                   I CONTROLLED SUBSTANCES.

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

     SEC. 1756. THEFT AND TRANSPORTATION OF ANHYDROUS AMMONIA FOR 
                   PURPOSES OF ILLICIT PRODUCTION OF CONTROLLED 
                   SUBSTANCES.

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


                          ``anhydrous ammonia

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

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

     SEC. 1757. CRIMINAL PROHIBITION ON DISTRIBUTION OF CERTAIN 
                   INFORMATION RELATING TO THE MANUFACTURE OF 
                   CONTROLLED SUBSTANCES.

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

                  ``CHAPTER 22--CONTROLLED SUBSTANCES

``Sec.
``421. Distribution of information relating to manufacture of 
              controlled substances.

     ``Sec. 421. Distribution of information relating to 
       manufacture of controlled substances

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

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

[[Page S447]]

                        CHAPTER 2--OTHER MATTERS

     SEC. 1761. WAIVER AUTHORITY FOR PHYSICIANS WHO DISPENSE OR 
                   PRESCRIBE CERTAIN NARCOTIC DRUGS FOR 
                   MAINTENANCE TREATMENT OR DETOXIFICATION 
                   TREATMENT.

       (a) Requirements.--Section 303(g) of the Controlled 
     Substances Act (21 U.S.C. 823(g)) is amended--
       (1) in paragraph (2), by striking ``(A) security'' and 
     inserting ``(i) security'', and by striking ``(B) the 
     maintenance'' and inserting ``(ii) the maintenance'';
       (2) by redesignating paragraphs (1) through (3) as 
     subparagraphs (A) through (C), respectively;
       (3) by inserting ``(1)'' after ``(g)'';
       (4) by striking ``Practitioners who dispense'' and 
     inserting ``Except as provided in paragraph (2), 
     practitioners who dispense and prescribe''; and
       (5) by adding at the end the following:
       ``(2)(A) Subject to subparagraphs (D), the requirements of 
     paragraph (1) are waived in the case of the dispensing or 
     prescribing, by a physician, of narcotic drugs in schedule 
     III, IV, or V, or combinations of such drugs, if the 
     physician meets the conditions specified in subparagraph (B) 
     and the narcotic drugs or combinations of such drugs meet the 
     conditions specified in subparagraph (C).
       ``(B)(i) For purposes of subparagraph (A), the conditions 
     specified in this subparagraph with respect to a physician 
     are that, before dispensing or prescribing narcotic drugs in 
     schedule III, IV, or V, or combinations of such drugs, to 
     patients for maintenance or detoxification treatment, the 
     physician submit to the Secretary and the Attorney General a 
     notification of the intent of the physician to begin 
     dispensing or prescribing the drugs or combinations for such 
     purpose, and that the notification to the Secretary also 
     contain the following certifications by the physician:
       ``(I) The physician--
       ``(aa) is a physician licensed under State law; and
       ``(bb) has training or experience and the ability to treat 
     and manage opiate-dependent patients.
       ``(II) With respect to patients to whom the physician will 
     provide such drugs or combinations of drugs, the physician 
     has the capacity to refer the patients for appropriate 
     counseling and other appropriate ancillary services.
       ``(III) In any case in which the physician is not in a 
     group practice, the total number of such patients of the 
     physician at any one time will not exceed the applicable 
     number. For purposes of this subclause, the applicable number 
     is 20, except that the Secretary may by regulation change 
     such total number.
       ``(IV) In any case in which the physician is in a group 
     practice, the total number of such patients of the group 
     practice at any one time will not exceed the applicable 
     number. For purposes of this subclause, the applicable number 
     is 20, except that the Secretary may by regulation change 
     such total number, and the Secretary for such purposes may by 
     regulation establish different categories on the basis of the 
     number of physicians in a group practice and establish for 
     the various categories different numerical limitations on the 
     number of such patients that the group practice may have.
       ``(ii)(I) The Secretary may, in consultation with the 
     Administrator of the Drug Enforcement Administration, the 
     Administrator of the Substance Abuse and Mental Health 
     Services Administration, the Director of the Center for 
     Substance Abuse Treatment, the Director of the National 
     Institute on Drug Abuse, and the Commissioner of Food and 
     Drugs, issue regulations through notice and comment 
     rulemaking or practice guidelines to implement this 
     paragraph. The regulations or practice guidelines shall 
     address the following:
       ``(aa) Approval of additional credentialing bodies and the 
     responsibilities of credentialing bodies.
       ``(bb) Additional exemptions from the requirements of this 
     paragraph and any regulations under this paragraph.
       ``(II) Nothing in the regulations or practice guidelines 
     under this clause may authorize any Federal official or 
     employee to exercise supervision or control over the practice 
     of medicine or the manner in which medical services are 
     provided.
       ``(III)(aa) The Secretary shall issue a Treatment 
     Improvement Protocol containing best practice guidelines for 
     the treatment and maintenance of opiate-dependent patients. 
     The Secretary shall develop the protocol in consultation with 
     the Director of the National Institute on Drug Abuse, the 
     Director of the Center for Substance Abuse Treatment, the 
     Administrator of the Drug Enforcement Administration, the 
     Commissioner of Food and Drugs, the Administrator of the 
     Substance Abuse and Mental Health Services Administration, 
     and other substance abuse disorder professionals. The 
     protocol shall be guided by science.
       ``(bb) The protocol shall be issued not later than 120 days 
     after the date of the enactment of the Methamphetamine Anti-
     Proliferation Act of 2000.
       ``(IV) For purposes of the regulations or practice 
     guidelines under subclause (I), a physician shall have 
     training or experience under clause (i)(I)(bb) if the 
     physician meets one or more of the following conditions:
       ``(aa) The physician is certified in addiction treatment by 
     the American Society of Addiction Medicine, the American 
     Board of Medical Specialties, the American Osteopathic 
     Academy of Addiction Medicine, or any other certified body 
     accredited by the Secretary.
       ``(bb) The physician has been a clinical investigator in a 
     clinical trial conducted for purposes of securing approval 
     under section 505 of the Federal Food, Drug, and Cosmetic Act 
     (21 U.S.C. 355) or section 351 of the Public Health Service 
     Act (42 U.S.C. 262) of a narcotic drug in schedule III, IV, 
     or V for the treatment of addiction, if such approval was 
     granted.
       ``(cc) The physician has completed training (through 
     classroom situations, seminars, professional society 
     meetings, electronic communications, or otherwise) provided 
     by the American Society of Addiction Medicine, the American 
     Academy of Addiction Psychiatry, the American Osteopathic 
     Academy of Addiction Medicine, the American Medical 
     Association, the American Osteopathic Association, the 
     American Psychiatric Association, or any other organization 
     that the Secretary determines appropriate for purposes of 
     this item. The curricula may include training in patient need 
     for counseling regarding HIV, Hepatitis C, and other 
     infectious diseases, substance abuse counseling, random drug 
     testing, medical evaluation, annual assessment, prenatal 
     care, diagnosis of addiction, rehabilitation services, 
     confidentiality, and other appropriate topics.
       ``(dd) The physician has training or experience in the 
     treatment and management of opiate-dependent, which training 
     or experience shall meet such criteria as the Secretary may 
     prescribe. Any such criteria shall be effective for a period 
     of three years after the effective date of such criteria, but 
     the Secretary may extend the effective period of such 
     criteria by additional periods of three years for each 
     extension if the Secretary determines that such extension is 
     appropriate for purposes of this item. Any such extension 
     shall go into effect only if the Secretary publishes a notice 
     of such extension in the Federal Register during the 30-day 
     period ending on the date of the end of the three-year 
     effective period of such criteria to which such extension 
     will apply.
       ``(ee) The physician is certified in addiction treatment by 
     a State medical licensing board, or an entity accredited by 
     such board, unless the Secretary determines (after an 
     opportunity for a hearing) that the training provided by such 
     board or entity was inadequate for the treatment and 
     management of opiate-dependent patients.
       ``(C) For purposes of subparagraph (A), the conditions 
     specified in this subparagraph with respect to narcotic drugs 
     in schedule III, IV, or V, or combinations of such drugs, are 
     as follows:
       ``(i) The drugs or combinations of drugs have, under the 
     Federal Food, Drug and Cosmetic Act or section 351 of the 
     Public Health Service Act, been approved for use in 
     maintenance or detoxification treatment.
       ``(ii) The drugs or combinations of drugs have not been the 
     subject of an adverse determination. For purposes of this 
     clause, an adverse determination is a determination published 
     in the Federal Register and made by the Secretary, after 
     consultation with the Attorney General, that experience since 
     the approval of the drug or combinations of drugs has shown 
     that the use of the drugs or combinations of drugs for 
     maintenance or detoxification treatment requires additional 
     standards respecting the qualifications of physicians to 
     provide such treatment, or requires standards respecting the 
     quantities of the drugs that may be provided for unsupervised 
     use.
       ``(D)(i) A waiver under subparagraph (A) with respect to a 
     physician is not in effect unless (in addition to conditions 
     under subparagraphs (B) and (C)) the following conditions are 
     met:
       ``(I) The notification under subparagraph (B) is in writing 
     and states the name of the physician.
       ``(II) The notification identifies the registration issued 
     for the physician pursuant to subsection (f).
       ``(III) If the physician is a member of a group practice, 
     the notification states the names of the other physicians in 
     the practice and identifies the registrations issued for the 
     other physicians pursuant to subsection (f).
       ``(IV) A period of 45 days has elapsed after the date on 
     which the notification was submitted, and during such period 
     the physician does not receive from the Secretary a written 
     notice that one or more of the conditions specified in 
     subparagraph (B), subparagraph (C), or this subparagraph, 
     have not been met.
       ``(ii) The Secretary shall provide to the Attorney General 
     such information contained in notifications under 
     subparagraph (B) as the Attorney General may request.
       ``(E) If in violation of subparagraph (A) a physician 
     dispenses or prescribes narcotic drugs in schedule III, IV, 
     or V, or combinations of such drugs, for maintenance 
     treatment or detoxification treatment, the Attorney General 
     may, for purposes of section 304(a)(4), consider the 
     physician to have committed an act that renders the 
     registration of the physician pursuant to subsection (f) to 
     be inconsistent with the public interest.
       ``(F)(i) Upon determining that a physician meets the 
     conditions specified in subparagraph (B), the Secretary shall 
     notify the physician and the Attorney General.
       ``(ii) Upon receiving notice with respect to a physician 
     under clause (i), the Attorney General shall assign the 
     physician an identification number under this paragraph for 
     inclusion with the physician's current registration to 
     prescribe narcotics. An identification number assigned a 
     physician under this clause shall be appropriate to preserve 
     the confidentiality of a patient prescribed narcotic drugs 
     covered by this paragraph by the physician.
       ``(iii) If the Secretary fails to make a determination 
     described in clause (i) by the end of the 45-day period 
     beginning on the date of the receipt by the Secretary of a 
     notification from a physician under subparagraph (B), the 
     Attorney General shall assign the physician an identification 
     number described in clause (ii) at the end of such period.

[[Page S448]]

       ``(G) In this paragraph:
       ``(i) The term `group practice' has the meaning given such 
     term in section 1877(h)(4) of the Social Security Act.
       ``(ii) The term `physician' has the meaning given such term 
     in section 1861(r) of the Social Security Act.
       ``(H)(i) This paragraph takes effect on the date of the 
     enactment of the Methamphetamine Anti-Proliferation Act of 
     2000, and remains in effect thereafter except as provided in 
     clause (iii) (relating to a decision by the Secretary or the 
     Attorney General that this paragraph should not remain in 
     effect).
       ``(ii) For the purposes relating to clause (iii), the 
     Secretary and the Attorney General shall, during the 3-year 
     period beginning on the date of the enactment of the 
     Methamphetamine Anti-Proliferation Act of 2000, make 
     determinations in accordance with the following:
       ``(I)(aa) The Secretary shall--
       ``(aaa) make a determination of whether treatments provided 
     under waivers under subparagraph (A) have been effective 
     forms of maintenance treatment and detoxification treatment 
     in clinical settings;
       ``(bbb) make a determination regarding whether such waivers 
     have significantly increased (relative to the beginning of 
     such period) the availability of maintenance treatment and 
     detoxification treatment; and
       ``(ccc) make a determination regarding whether such waivers 
     have adverse consequences for the public health.
       ``(bb) In making determinations under this subclause, the 
     Secretary--
       ``(aaa) may collect data from the practitioners for whom 
     waivers under subparagraph (A) are in effect;
       ``(bbb) shall issue appropriate guidelines or regulations 
     (in accordance with procedures for substantive rules under 
     section 553 of title 5, United States Code) specifying the 
     scope of the data that will be required to be provided under 
     this subclause and the means through which the data will be 
     collected; and
       ``(ccc) shall, with respect to collecting such data, comply 
     with applicable provisions of chapter 6 of title 5, United 
     States Code (relating to a regulatory flexibility analysis), 
     and of chapter 8 of such title (relating to congressional 
     review of agency rulemaking).
       ``(II) The Attorney General shall--
       ``(aa) make a determination of the extent to which there 
     have been violations of the numerical limitations established 
     under subparagraph (B) for the number of individuals to whom 
     a practitioner may provide treatment; and
       ``(bb) make a determination regarding whether waivers under 
     subparagraph (A) have increased (relative to the beginning of 
     such period) the extent to which narcotic drugs in schedule 
     III, IV, or V, or combinations of such drugs, are being 
     dispensed or prescribed, or possessed, in violation of this 
     Act.
       ``(iii) If, before the expiration of the period specified 
     in clause (ii), the Secretary or the Attorney General 
     publishes in the Federal Register a decision, made on the 
     basis of determinations under such clause, that this 
     paragraph should not remain in effect, this paragraph ceases 
     to be in effect 60 days after the date on which the decision 
     is so published. The Secretary shall, in making any such 
     decision, consult with the Attorney General, and shall, in 
     publishing the decision in the Federal Register, include any 
     comments received from the Attorney General for inclusion in 
     the publication. The Attorney General shall, in making any 
     such decision, consult with the Secretary, and shall, in 
     publishing the decision in the Federal Register, include any 
     comments received from the Secretary for inclusion in the 
     publication.
       ``(I) During the 3-year period beginning on the date of the 
     enactment of the Methamphetamine Anti-Proliferation Act of 
     2000, a State may not preclude a practitioner from dispensing 
     or prescribing narcotic drugs in schedule III, IV, or V, or 
     combinations of such drugs, to patients for maintenance or 
     detoxification treatment in accordance with this paragraph, 
     or the other amendments made by section 22 of that Act, 
     unless, before the expiration of that 3-year period, the 
     State enacts a law prohibiting a practitioner from dispensing 
     or prescribing such drugs or combination of drugs.''.
       (b) Conforming Amendments.--Section 304 of the Controlled 
     Substances Act (21 U.S.C. 824) is amended--
       (1) in subsection (a), in the matter following paragraph 
     (5), by striking ``section 303(g)'' each place the term 
     appears and inserting ``section 303(g)(1)''; and
       (2) in subsection (d), by striking ``section 303(g)'' and 
     inserting ``section 303(g)(1)''.
       (c) Authorization of Appropriations.--There is hereby 
     authorized to be appropriated for purposes of activities 
     under section 303(g)(2) of the Controlled Substances Act, as 
     added by subsection (a), amounts as follows:
       (1) For fiscal year 2000, $3,000,000.
       (2) For each fiscal year after fiscal year 2000, such sums 
     as may be necessary for such fiscal year.

                       Subtitle C--Cocaine Powder

     SEC. 1771. SHORT TITLE.

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

     SEC. 1772. SENTENCING FOR VIOLATIONS INVOLVING COCAINE 
                   POWDER.

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

                     Subtitle D--Education Matters

     SEC. 1781. SAFE SCHOOLS.

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

     SEC. 1782. STUDENT SAFETY AND FAMILY SCHOOL CHOICE.

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

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

       ``(a) In General.--Notwithstanding any other provision of 
     law, if a student is eligible to be served under section 
     1115(b), or attends a school eligible for a schoolwide 
     program under section 1114, and becomes a victim of a violent 
     criminal offense, including drug-related violence, while in 
     or on the grounds of a public elementary school or secondary 
     school that the student attends and that receives assistance 
     under this part, then the local educational agency may use 
     funds provided under this part or under any other Federal 
     education program to pay the supplementary costs for such 
     student to attend another school. The agency may use the 
     funds to pay for the supplementary costs of such student to 
     attend any other public or private elementary school or 
     secondary school, including a

[[Page S449]]

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

     SEC. 1783. TRANSFER OF REVENUES.

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

                       Subtitle E--Miscellaneous

     SEC. 1791. NOTICE; CLARIFICATION.

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

     SEC. 1792. DOMESTIC TERRORISM ASSESSMENT AND RECOVERY.

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

     SEC. 1793. ANTIDRUG MESSAGES ON FEDERAL GOVERNMENT INTERNET 
                   WEBSITES.

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

     SEC. 1794. STATE SCHOOLS.

       (a) Amendments.--Part F of title XIV of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 8921 et seq.) is 
     amended as follows:
       (1) Short title.--Section 14601(a) is amended by replacing 
     ``Gun-Free'' with ``Safe'', and ``1994'' with ``1999''.
       (2) Requirements.--Section 14601(b)(1) is amended by 
     inserting after ``determined'' the following: ``to be in 
     possession of felonious quantities of an illegal drug, on 
     school property under the jurisdiction of, or in a vehicle 
     operated by an employee or agent of, a local educational 
     agency in that State, or''.
       (3) Definitions.--Section 14601(b)(4) is amended by 
     replacing ``Definition'' with ``Definitions'' in the 
     catchline, by replacing ``section'' in the matter under the 
     catchline with ``part'', by redesignating the matter under 
     the catchline after the comma as subparagraph (A), by 
     replacing the period with a semicolon, and by adding new 
     subparagraphs (B), (C), and (D) as follows:
       ``(B) The term `illegal drug' means a controlled substance, 
     as defined in section 102(6) of the Controlled Substances Act 
     (21 U.S.C. 802(6)), the possession of which is unlawful under 
     the Act (21 U.S.C. 801 et seq.) or under the Controlled 
     Substances Import and Export Act (21 U.S.C. 951 et seq.), but 
     does not mean a controlled substance used pursuant to a valid 
     prescription or as authorized by law.
       ``(C) The term `illegal drug paraphernalia' means drug 
     paraphernalia, as defined in section 422(d) of the Controlled 
     Substances Act (21 U.S.C. 863(d)), except that the first 
     sentence of that section shall be applied by inserting `or 
     under the Controlled Substances Import and Export Act (21 
     U.S.C. 951 et seq.)', before the period.
       ``(D) The term `felonious quantities of an illegal drug' 
     means any quantity of an illegal drug--
       ``(i) possession of which quantity would, under Federal, 
     State, or local law, either constitute a felony or indicate 
     an intent to distribute; or
       ``(ii) that is possessed with an intent to distribute.''.
       (4) Report to state.--Section 14601(d)(2)(C) is amended by 
     inserting ``illegal drugs or'' before ``weapons''.
       (5) Repealer.--Section 14601 is amended by striking 
     subsection (f).

[[Page S450]]

       (6) Policy regarding criminal justice system referral.--
     Section 14602(a) is amended by replacing ``served by'' with 
     ``under the jurisdiction of'', and by inserting after ``who'' 
     the following: ``is in possession of an illegal drug, or 
     illegal drug paraphernalia, on school property under the 
     jurisdiction of, or in a vehicle operated by an employee or 
     agent of, such agency, or who''.
       (7) Data and policy dissemination under idea.--Section 
     14603 is amended by inserting ``current'' before ``policy'', 
     by striking ``in effect on October 20, 1994'', by striking 
     all the matter after ``schools'' and inserting a period 
     thereafter, and by inserting before ``engaging'' the 
     following: ``possessing illegal drugs, or illegal drug 
     paraphernalia, on school property, or in vehicles operated by 
     employees or agents of, schools or local educational 
     agencies, or''.
       (b) Compliance Date; Reporting.--(1) States shall have 2 
     years from the date of enactment of this Act to comply with 
     the requirements established in the amendments made by 
     subsection (a).
       (2) Not later than 3 years after the date of enactment of 
     this Act, the Secretary of Education shall submit to Congress 
     a report on any State that is not in compliance with the 
     requirements of this part.
       (3) Not later than 2 years after the date of enactment of 
     this Act, the Secretary of Education shall submit to Congress 
     a report analyzing the strengths and weaknesses of approaches 
     regarding the disciplining of children with disabilities.

     SEC. 1795. STUDENT SAFETY AND FAMILY SCHOOL CHOICE.

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

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

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

     SEC. 1796. TRANSFER OF REVENUES.

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

     SEC. 1797. INCREASED PENALTIES FOR DISTRIBUTING DRUGS TO 
                   MINORS.

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

     SEC. 1798. INCREASED PENALTY FOR DRUG TRAFFICKING IN OR NEAR 
                   A SCHOOL OR OTHER PROTECTED LOCATION.

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

     SEC. 1799. SEVERABILITY.

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

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

     SEC. 1801. SHORT TITLE.

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

     SEC. 1802. FINDINGS AND PURPOSES.

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

[[Page S451]]

       (3) to facilitate revisions to the price elements of the 
     contract referred to in section 1802(a)(4) by declaring and 
     making unlawful, effective 180 days after the date of 
     enactment of this Act, the contract as it exists on the date 
     of enactment of this Act.

     SEC. 1803. UNLAWFUL CONTRACT AND AMENDED CONTRACT.

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

     SEC. 1804. EXCLUSIVE ENFORCEMENT.

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

                 TITLE XIX--CONSUMER CREDIT DISCLOSURE

     SEC. 1901. ENHANCED DISCLOSURES UNDER AN OPEN END CREDIT 
                   PLAN.

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

     SEC. 1902. ENHANCED DISCLOSURE FOR CREDIT EXTENSIONS SECURED 
                   BY A DWELLING.

       (a) Open End Credit Extensions.--
       (1) Credit applications.--Section 127A(a)(13) of the Truth 
     in Lending Act (15 U.S.C. 1637a(a)(13)) is amended--
       (A) by striking ``consultation of tax advisor.--A statement 
     that the'' and inserting the following: ``tax 
     deductibility.--A statement that--
       ``(A) the''; and
       (B) by striking the period at the end and inserting the 
     following: ``; and
       ``(B) in any case in which the extension of credit exceeds 
     the fair market value (as defined under the Federal Internal 
     Revenue Code) of the dwelling, the interest on the portion of 
     the credit extension that is greater than the fair market 
     value of the dwelling is not tax deductible for Federal 
     income tax purposes.''.
       (2) Credit advertisements.--Section 147(b) of the Truth in 
     Lending Act (15   U.S.C. 1665b(b)) is amended--

[[Page S452]]

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

     SEC. 1903. DISCLOSURES RELATED TO ``INTRODUCTORY RATES''.

       (a) Introductory Rate Disclosures.--Section 127(c) of the 
     Truth in Lending Act (15 U.S.C. 1637(c)) is amended by adding 
     at the end the following:
       ``(6) Additional notice concerning `introductory rates'.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     an application or solicitation to open a credit card account 
     and all promotional materials accompanying such application 
     or solicitation, for which a disclosure is required under 
     paragraph (1), and that offers a temporary annual percentage 
     rate of interest, shall--
       ``(i) use the term `introductory' in immediate proximity to 
     each listing of the temporary annual percentage rate 
     applicable to such account, which term shall appear clearly 
     and conspicuously;
       ``(ii) if the annual percentage rate of interest that will 
     apply after the end of the temporary rate period will be a 
     fixed rate, state the following in a clear and conspicuous 
     manner in a prominent location closely proximate to the first 
     listing of the temporary annual percentage rate (other than a 
     listing of the temporary annual percentage rate in the 
     tabular format described in section 122(c)) or, if the first 
     listing is not the most prominent listing, then closely 
     proximate to the most prominent listing of the temporary 
     annual percentage rate, in each document and in no smaller 
     type size than the smaller of the type size in which the 
     proximate temporary annual percentage rate appears or a 12-
     point type size, the time period in which the introductory 
     period will end and the annual percentage rate that will 
     apply after the end of the introductory period; and
       ``(iii) if the annual percentage rate that will apply after 
     the end of the temporary rate period will vary in accordance 
     with an index, state the following in a clear and conspicuous 
     manner in a prominent location closely proximate to the first 
     listing of the temporary annual percentage rate (other than a 
     listing in the tabular format prescribed by section 122(c)) 
     or, if the first listing is not the most prominent listing, 
     then closely proximate to the most prominent listing of the 
     temporary annual percentage rate, in each document and in no 
     smaller type size than the smaller of the type size in which 
     the proximate temporary annual percentage rate appears or a 
     12-point type size, the time period in which the introductory 
     period will end and the rate that will apply after that, 
     based on an annual percentage rate that was in effect within 
     60 days before the date of mailing the application or 
     solicitation.
       ``(B) Exception.--Clauses (ii) and (iii) of subparagraph 
     (A) do not apply with respect to any listing of a temporary 
     annual percentage rate on an envelope or other enclosure in 
     which an application or solicitation to open a credit card 
     account is mailed.
       ``(C) Conditions for introductory rates.--An application or 
     solicitation to open a credit card account for which a 
     disclosure is required under paragraph (1), and that offers a 
     temporary annual percentage rate of interest shall, if that 
     rate of interest is revocable under any circumstance or upon 
     any event, clearly and conspicuously disclose, in a prominent 
     manner on or with such application or solicitation--
       ``(i) a general description of the circumstances that may 
     result in the revocation of the temporary annual percentage 
     rate; and
       ``(ii) if the annual percentage rate that will apply upon 
     the revocation of the temporary annual percentage rate--

       ``(I) will be a fixed rate, the annual percentage rate that 
     will apply upon the revocation of the temporary annual 
     percentage rate; or
       ``(II) will vary in accordance with an index, the rate that 
     will apply after the temporary rate, based on an annual 
     percentage rate that was in effect within 60 days before the 
     date of mailing the application or solicitation.

       ``(D) Definitions.--In this paragraph--
       ``(i) the terms `temporary annual percentage rate of 
     interest' and `temporary annual percentage rate' mean any 
     rate of interest applicable to a credit card account for an 
     introductory period of less than 1 year, if that rate is less 
     than an annual percentage rate that was in effect within 60 
     days before the date of mailing the application or 
     solicitation; and
       ``(ii) the term `introductory period' means the maximum 
     time period for which the temporary annual percentage rate 
     may be applicable.
       ``(E) Relation to other disclosure requirements.--Nothing 
     in this paragraph may be construed to supersede subsection 
     (a) of section 122, or any disclosure required by paragraph 
     (1) or any other provision of this subsection.''.
       (b) Regulatory Implementation.--The Board of Governors of 
     the Federal Reserve System (hereafter in this title referred 
     to as the (``Board'') shall promulgate regulations 
     implementing the requirements of section 127 of the Truth in 
     Lending Act, as amended by subsection (a) of this section. 
     Any provision set forth in subsection (a) and such 
     regulations shall not take effect until the later of 12 
     months after the date of enactment of this Act or 12 months 
     after the publication of such regulations by the Board.

     SEC. 1904. INTERNET-BASED CREDIT CARD SOLICITATIONS.

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

     SEC. 1905. DISCLOSURES RELATED TO LATE PAYMENT DEADLINES AND 
                   PENALTIES.

       (a) Disclosures Related to Late Payment Deadlines and 
     Penalties.--Section 127(b) of the Truth in Lending Act (15 
     U.S.C. 1637(b)) is amended by adding at the end the 
     following:
       ``(12) If a late payment fee is to be imposed due to the 
     failure of the obligor to make payment on or before a 
     required payment due date the following shall be stated 
     clearly and conspicuously on the billing statement:
       ``(A) The date on which that payment is due or, if 
     different, the earliest date on which a late payment fee may 
     be charged.
       ``(B) The amount of the late payment fee to be imposed if 
     payment is made after such date.''.
       (b) Regulatory Implementation.--The Board of Governors of 
     the Federal Reserve System (hereafter in this title referred 
     to as the

[[Page S453]]

     (``Board'') shall promulgate regulations implementing the 
     requirements of section 127 of the Truth in Lending Act, as 
     amended by subsection (a) of this section. Any provision set 
     forth in subsection (a) and such regulations shall not take 
     effect until the later of 12 months after the date of 
     enactment of this Act or 12 months after the publication of 
     such regulations by the Board.

     SEC. 1906. PROHIBITION ON CERTAIN ACTIONS FOR FAILURE TO 
                   INCUR FINANCE CHARGES.

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

     SEC. 1907. DUAL USE DEBIT CARD.

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

     SEC. 1908. STUDY OF BANKRUPTCY IMPACT OF CREDIT EXTENDED TO 
                   DEPENDENT STUDENTS.

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

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