[Congressional Record Volume 151, Number 25 (Monday, March 7, 2005)]
[Senate]
[Pages S2172-S2197]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 58. Mr. STEVENS submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the appropriate place, insert the following:

     SEC. ------. CERTAIN OBLIGATIONS UNDER THE COMMUNICATIONS ACT 
                   OF 1934.

       Section 4 of the Communications Act of 1934 (47 U.S.C. 154) 
     is amended by adding at the end the following:
       ``(p) Application of Bankruptcy Laws.--
       ``(1) In General.--The bankruptcy laws may not be applied--
       ``(A) to avoid, to discharge, to stay, or to set-off any 
     pre-petition or post-petition debt obligation to the United 
     States arising from an auction under section 309(j) of this 
     Act;
       ``(B) to stay the payment obligations of the debtor to the 
     United States if those obligations were a condition of the 
     grant or retention of a license under this Act;
       ``(C) to prevent the automatic cancellation of a license 
     under this Act pursuant to Commission rules for failure to 
     comply with any monetary or nonmonetary condition for holding 
     a license issued by the Commission, including the automatic 
     cancellation of a license for failure to pay a monetary 
     obligation of the debtor to the United States, whether or not 
     dischargeable in a bankruptcy case, when due under an 
     installment plan arising from an auction under section 309(j) 
     of this Act, except that, upon cancellation of such license, 
     the United States shall have an allowed unsecured claim for 
     any outstanding debt to the United States with respect to 
     such canceled license, and that such unsecured debt may be 
     recovered by the United States under its rights as a creditor 
     under this title or other applicable law;
       ``(D) to avoid, to discharge, or to set-off the pre-
     petition or post-petition payment obligation of a 
     telecommunications carrier to contribute to the universal 
     service fund, North American Numbering Plan, or other similar 
     telecommunications funding mechanism established by Federal 
     law; or
       ``(E) to avoid, to discharge, or to set-off the payment 
     obligation of an entity subject to a pre-petition forfeiture 
     or post-petition order or notice of apparent liability 
     entered by the Commission pursuant to regulations of the 
     Commission.
       ``(2) Debtor to have no interest in proceeds of auction.--A 
     debtor in a proceeding under the bankruptcy laws shall have 
     no right or interest in any portion of the proceeds from a 
     subsequent auction of any license reclaimed by the Commission 
     for failure to pay a monetary obligation of the debtor to the 
     United States in connection with the grant or retention of a 
     license under this Act.
       ``(3) Security interests.--Notwithstanding any other 
     provision of law, including State Uniform Commercial Codes, 
     the Commission may--
       ``(A) establish rules and procedures governing security 
     interests in licenses issued by the Commission, or the 
     proceeds of the sale of such licenses; and
       ``(B) establish an office within the Commission for the 
     recording and perfection of such security interests without 
     regard to otherwise applicable State law.
       ``(4) Bankruptcy laws defined.--In this subsection, the 
     term `bankruptcy laws' means title 11, United States Code, 
     and any otherwise applicable Federal or State law regarding 
     insolvencies or receiverships, including any Federal law 
     enacted or amended after the date of enactment of the 
     Bankruptcy Abuse Prevention and Consumer Protection Act of 
     2005 not expressly in derogation of this section.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to bankruptcy cases filed after the date of 
     enactment of this Act.
                                 ______
                                 
  SA 59. Mr. STEVENS submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:


[[Page S2173]]


       At the appropriate place, insert the following:

     SEC. ------. CERTAIN OBLIGATIONS UNDER THE COMMUNICATIONS ACT 
                   OF 1934.

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

     ``Sec. 561. Application with Communications Act of 1934

       ``(a) In General.--The bankruptcy laws may not be applied--
       ``(1) to avoid, to discharge, to stay, or to set-off any 
     pre-petition or post-petition debt obligation to the United 
     States arising from an auction under section 309(j) of the 
     Communications Act of 1934 (47 U.S.C. 309(j));
       ``(2) to stay the payment obligations of the debtor to the 
     United States if those obligations were a condition of the 
     grant or retention of a license under that Act;
       ``(3) to prevent the automatic cancellation of a license 
     under that Act pursuant to Commission rules for failure to 
     comply with any monetary or nonmonetary condition for holding 
     a license issued by the Commission, including the automatic 
     cancellation of a license for failure to pay a monetary 
     obligation of the debtor to the United States, whether or not 
     dischargeable in a bankruptcy case, when due under an 
     installment plan arising from an auction under section 309(j) 
     of the Communications Act of 1934 (47 U.S.C. 309(j)), except 
     that, upon cancellation of such license, the United States 
     shall have an allowed unsecured claim for any outstanding 
     debt to the United States with respect to such canceled 
     license, and that such unsecured debt may be recovered by the 
     United States under its rights as a creditor under this title 
     or other applicable law;
       ``(4) to avoid, to discharge, or to set-off the pre-
     petition or post-petition payment obligation of a 
     telecommunications carrier to contribute to the universal 
     service fund, North American Numbering Plan, or other similar 
     telecommunications funding mechanism established by Federal 
     law; or
       ``(5) to avoid, to discharge, or to set-off the payment 
     obligation of an entity subject to a pre-petition forfeiture 
     or post-petition order or notice of apparent liability 
     entered by the Commission pursuant to regulations of the 
     Commission.
       ``(b) Debtor To have No Interest in Proceeds of Auction.--A 
     debtor in a proceeding under the bankruptcy laws shall have 
     no right or interest in any portion of the proceeds from a 
     subsequent auction of any license reclaimed by the Commission 
     for failure to pay a monetary obligation of the debtor to the 
     United States in connection with the grant or retention of a 
     license under the Communications Act of 1934 (47 U.S.C. 151 
     et seq.).
       ``(c) Security Interests.--Notwithstanding any other 
     provision of law, including State Uniform Commercial Codes, 
     the Commission may--
       ``(1) establish rules and procedures governing security 
     interests in licenses issued by the Commission, or the 
     proceeds of the sale of such licenses; and
       ``(2) establish an office within the Commission for the 
     recording and perfection of such security interests without 
     regard to otherwise applicable State law.
       ``(d) Definitions.--In this section:
       ``(1) Bankruptcy laws.--The term `bankruptcy laws' means 
     this title and any otherwise applicable Federal or State law 
     regarding insolvencies or receiverships, including any 
     Federal law enacted or amended after the date of enactment of 
     the Bankruptcy Abuse Prevention and Consumer Protection Act 
     of 2005 not expressly in derogation of this section.
       ``(2) Commission.--The term `Commission' means the Federal 
     Communications Commission.''.
       (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 560 the following:

``561. Application with Communications Act of 1934''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to bankruptcy cases filed after the date of 
     enactment of this Act.
                                 ______
                                 
  SA 60. Mr. CORNYN submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

        On page 47, strike lines 12 through 14, and insert the 
     following:

     SEC. 202. EFFECT OF DISCHARGE.

       (a) Injunction After Confirmation of Bankruptcy Plan of 
     Reorganization.--
       (1) In general.--Section 524(g)(2)(B)(ii)(IV)(bb) of title 
     11, United States Code, is amended by inserting before the 
     semicolon at the end the following: ``, or, if such a vote is 
     not obtained with respect to any such class of claimants so 
     established, the plan satisfies the requirements for 
     confirmation of a plan under section 1129(b) that would apply 
     to such class if the class did not accept the plan for 
     purposes of section 1129(a)(8) (whether or not the class has 
     accepted the plan)''.
       (2) Effective date; application.--The amendment made by 
     paragraph (1) shall take effect on the date of enactment of 
     this Act and shall apply with respect to cases under title 11 
     of the United States Code, which were commenced before, on, 
     or after such date.
       (b) Violation of Injunction; Exception.--Section 524 of 
     title 11, United States Code, is amended by adding at the end 
     the following:
                                 ______
                                 
  SA 61. Mrs. BOXER submitted an amendment intended to be proposed by 
her to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

        On page 132, between lines 5 and 6, insert the following:

     SEC. 234. DISALLOWANCE OF CLAIM IF BASED ON EXTENSION OF 
                   CREDIT TO CERTAIN INDIVIDUALS UNDER 21 YEARS OF 
                   AGE.

       Title 11, United States Code, as amended by this Act, is 
     further amended by inserting after section 112 the following:

     ``Sec. 113. Disallowance of claim if based on extension of 
       credit to certain individuals under 21 years of age

       ``(a) In General.--In making a determination of whether to 
     disallow a claim under this title, the court shall consider 
     if the claim is based upon an extension to an individual of 
     unsecured credit and the factors listed in subsection (b) are 
     present. The factors listed in subsection (b) may be the 
     basis for a disallowance of a claim under this title.
       ``(b) Factors.--The factors under this subsection are the 
     following: if the individual, at the time unsecured credit 
     was extended--
       ``(1) was under 21 years of age;
       ``(2) did not have a co-obligor on such unsecured credit 
     who was a parent or spouse of the individual;
       ``(3) had an income level that was below or at the poverty 
     line (as defined by the Office of Management and Budget, and 
     revised annually in accordance with section 673(2) of the 
     Community Services Block Grant Act (42 U.S.C. 9902(2))); and
       ``(4) already had 5 or more unsecured credit cards.''.
                                 ______
                                 
  SA 62. Mrs. BOXER submitted an amendment intended to be proposed by 
her to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

        On page 132, between lines 5 and 6, insert the following:

     SEC. 234. DISALLOWANCE OF CLAIM IF BASED ON EXTENSION OF 
                   CREDIT TO CERTAIN INDIVIDUALS UNDER 21 YEARS OF 
                   AGE.

       Title 11, United States Code, as amended by this Act, is 
     further amended by inserting after section 112 the following:

     ``Sec. 113. Disallowance of claim if based on extension of 
       credit to certain individuals under 21 years of age

       ``(a) In General.--In making a determination of whether to 
     disallow a claim under this title, the court shall consider 
     if the claim is based upon an extension to an individual of 
     unsecured credit and the factors listed in subsection (b) are 
     present. The factors listed in subsection (b) may be the 
     basis for a disallowance of a claim under this title.
       ``(b) Factors.--The factors under this subsection are the 
     following: if the individual, at the time unsecured credit 
     was extended--
       ``(1) was under 21 years of age;
       ``(2) did not have a co-obligor on such unsecured credit 
     who was a parent or spouse of the individual;
       ``(3) had an income level that was below or at the poverty 
     line (as defined by the Office of Management and Budget, and 
     revised annually in accordance with section 673(2) of the 
     Community Services Block Grant Act (42 U.S.C. 9902(2))); and
       ``(4) already had 6 or more unsecured credit cards.''.
                                 ______
                                 
  SA 63. Mr. LEVIN (for himself and Mr. Pryor) submitted an amendment 
intended to be proposed by him to the bill S. 256, to amend title 11 of 
the United States Code, and for other purposes; which was ordered to 
lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. CALCULATION OF FINANCE CHARGE DURING GRACE PERIOD.

       Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is 
     amended by adding at the end the following:
       ``(h) Calculation of Finance Charge During Grace Period.--A 
     creditor may not impose a finance charge with respect to any 
     amount paid on time.''.
                                 ______
                                 
  SA 64. Ms. LANDRIEU submitted an amendment intended to be proposed by 
her to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       At the end add the following:

      TITLE XVI--TREATMENT OF CERTAIN DISASTER MITIGATION PAYMENTS

     SEC. 1601. PROPER TAX TREATMENT OF CERTAIN DISASTER 
                   MITIGATION PAYMENTS.

       (a) Qualified Disaster Mitigation Payments Excluded From 
     Gross Income.--
       (1) In general.--Section 139 of the Internal Revenue Code 
     of 1986 (relating to disaster relief payments) is amended by 
     adding at the end the following new subsections:

[[Page S2174]]

       ``(g) Qualified Disaster Mitigation Payments.--
       ``(1) In general.--Gross income shall not include any 
     amount received as a qualified disaster mitigation payment.
       ``(2) Qualified disaster mitigation payment defined.--For 
     purposes of this section, the term `qualified disaster 
     mitigation payment' means any amount which is paid pursuant 
     to the Robert T. Stafford Disaster Relief and Emergency 
     Assistance Act (as in effect on the date of the enactment of 
     this subsection) or the National Flood Insurance Act (as in 
     effect on such date) to or for the benefit of the owner of 
     any property for hazard mitigation with respect to such 
     property. Such term shall not include any amount received for 
     the sale or disposition of any property.
       ``(3) No increase in basis.--Notwithstanding any other 
     provision of this subtitle, no increase in the basis or 
     adjusted basis of any property shall result from any amount 
     excluded under this subsection with respect to such property.
       ``(h) Denial of Double Benefit.--Notwithstanding any other 
     provision of this subtitle, no deduction or credit shall be 
     allowed (to the person for whose benefit a qualified disaster 
     relief payment or qualified disaster mitigation payment is 
     made) for, or by reason of, any expenditure to the extent of 
     the amount excluded under this section with respect to such 
     expenditure.''.
       (2) Conforming amendments.--
       (A) Subsection (d) of section 139 of such Code is amended 
     by striking ``a qualified disaster relief payment'' and 
     inserting ``qualified disaster relief payments and qualified 
     disaster mitigation payments''.
       (B) Subsection (e) of section 139 of such Code is amended 
     by striking ``and (f)'' and inserting ``, (f), and (g)''.
       (b) Certain Dispositions of Property Under Hazard 
     Mitigation Programs Treated as Involuntary Conversions.--
     Section 1033 of such Code (relating to involuntary 
     conversions) is amended by redesignating subsection (k) as 
     subsection (l) and by inserting after subsection (j) the 
     following new subsection:
       ``(k) Sales or Exchanges Under Certain Hazard Mitigation 
     Programs.--For purposes of this subtitle, if property is sold 
     or otherwise transferred to the Federal Government, a State 
     or local government, or an Indian tribal government to 
     implement hazard mitigation under the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (as in effect on 
     the date of the enactment of this subsection) or the National 
     Flood Insurance Act (as in effect on such date), such sale or 
     transfer shall be treated as an involuntary conversion to 
     which this section applies.''.
       (c) Effective Date.--
       (1) Qualified disaster mitigation payments.--The amendments 
     made by subsection (a) shall apply to amounts received in 
     taxable years ending after December 31, 2003.
       (2) Dispositions of property under hazard mitigation 
     programs.--The amendments made by subsection (b) shall apply 
     to sales or other dispositions in taxable years ending after 
     December 31, 2003.
                                 ______
                                 
  SA 65. Mr. ROCKEFELLER (for himself and Mr. Obama) submitted an 
amendment intended to be proposed by him to the bill S. 256, to amend 
title 11 of the United States Code, and for other purposes; which was 
ordered to lie on the table; as follows:

       On page 500, strike lines 7 through 11, and insert the 
     following:
       (1) by redesignating subsection (l) as subsection (n); and
       (2) by inserting after subsection (k) the following:
       ``(l) Notwithstanding any other provision of this section, 
     the benefits required to be provided by a last signatory 
     operator under chapter 99 of the Internal Revenue Code of 
     1986, may not be terminated or modified by any court in a 
     proceeding under this title.
       ``(m) If the debtor, during the 180-day period ending
                                 ______
                                 
  SA 66. Mr. HARKIN (for himself, Mr. Rockefeller, Mr. Leahy, Mr. 
Dayton, and Mr. Kennedy) submitted an amendment intended to be proposed 
by him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       On page 498, strike lines 23 and 24, and insert the 
     following:
       (1) in paragraph (4), by striking ``within 90 days'';
                                 ______
                                 
  SA 67. Mr. DODD submitted an amendment intended to be proposed by him 
to the bill S. 256, to amend title 11 of the United States Code, and 
for other purposes; as follows:

        At the end of the bill, add the following:

        TITLE XVI--MODIFICATIONS FOR THE PROTECTION OF FAMILIES

     SEC. 1601. MODIFICATIONS FOR THE PROTECTION OF FAMILIES.

       (a) Dismissal or Conversion.--Section 707(b)(2)(A)(ii) of 
     title 11, United States Code, as amended by this Act, is 
     further amended--
       (1) in subclause (IV), by striking ``$1,500'' and inserting 
     ``$5,000''; and
       (2) by adding at the end the following:
       ``(VI) In addition, the debtor's monthly expenses shall 
     include--
       ``(aa) taxes and mandatory withholdings from wages;
       ``(bb) alimony, child, and spousal support payments;
       ``(cc) legal fees necessary for the debtor's case;
       ``(dd) pension payments;
       ``(ee) religious and charitable contributions;
       ``(ff) union dues;
       ``(gg) other expenses necessary for the operation of a 
     business of the debtor or for the debtor's employment;
       ``(hh) ownership costs for 1 motor vehicle (or 2 in the 
     case of a joint filing), determined in accordance with 
     Internal Revenue Service transportation standards, reduced by 
     any payments on debts secured by the motor vehicle or vehicle 
     lease payments made by the debtor;
       ``(ii) expenses for children's toys and recreation for 
     children of the debtor, tax credits for earned income 
     determined under section 32 of the Internal Revenue Code of 
     1986; and
       ``(jj) miscellaneous and emergency expenses.''.
       (b) Definition of Current Monthly Income.--Section 
     101(10A)(B) of title 11, United States Code, as amended by 
     this Act, is further amended by inserting ``payments received 
     as domestic spousal obligations,'' after ``Social Security 
     Act,''.
       (c) Property of the Estate.--Section 541 of title 11, 
     United States Code, as amended by this Act, is further 
     amended--
       (1) in subsection (a)(5)(B) by inserting ``except as 
     provided under subsection (b)(11),'' before ``as a result''; 
     and
       (2) in subsection (b)--
       (A) in paragraph (8), by striking ``or'' after the 
     semicolon;
       (B) in paragraph (9), by striking the period at the end and 
     inserting a semicolon; and
       (C) by inserting after paragraph (9) the following:
       ``(10) any--
       ``(A) refund of tax due to the debtor under subtitle A of 
     the Internal Revenue Code of 1986 for any taxable year to the 
     extent that the refund does not exceed the amount of an 
     applicable earned income tax credit allowed under section 32 
     of such Code for such year and the amount of an applicable 
     child tax credit allowed under section 24 of such Code for 
     such year; and
       ``(B) advance payment for an earned income tax credit 
     described in subparagraph (A); or
       ``(11) the right of the debtor to receive domestic spousal 
     obligations for the debtor or dependent of the debtor.''.
       (d) Protection of Earned Income Tax Credit and Support 
     Payments Under Bankruptcy Repayment Plans in Chapter 12.--
     Section 1225(b) of title 11, United States Code, as amended 
     by this Act, is further amended by adding at the end the 
     following:
       ``(3) In determining disposable income, the court shall not 
     consider amounts the debtor receives or is entitled to 
     receive from--
       ``(A) any refund of tax due to the debtor under subtitle A 
     of the Internal Revenue Code of 1986 for any taxable year to 
     the extent that the refund does not exceed the amount of an 
     applicable earned income tax credit allowed under section 32 
     of the Internal Revenue Code of 1986 for such year and the 
     amount of an applicable child tax credit allowed under 
     section 24 of such Code for such year;
       ``(B) any advance payment for an earned income tax credit 
     described in subparagraph (A); or
       ``(C) child support, foster care, or disability payment for 
     the care of a dependent child in accordance with applicable 
     nonbankruptcy law.''.
       (e) Protection of Earned Income Tax Credit and Support 
     Payments Under Bankruptcy Repayment Plans in Chapter 13.--
     Section 1325(b) of title 11, United States Code, as amended 
     by this Act, is further amended by adding at the end the 
     following:
       ``(5) In determining disposable income, the court shall not 
     consider amounts the debtor receives or is entitled to 
     receive from--
       ``(A) any refund of tax due to the debtor under subtitle A 
     of the Internal Revenue Code of 1986 for any taxable year to 
     the extent that the refund does not exceed the amount of an 
     applicable earned income tax credit allowed by section 32 of 
     the Internal Revenue Code of 1986 for such year and the 
     amount of an applicable child tax credit allowed under 
     section 24 of such Code for such year;
       ``(B) any advance payment for an earned income tax credit 
     described in subparagraph (A); or
       ``(C) child support, foster care, or disability payment for 
     the care of a dependent child in accordance with applicable 
     nonbankruptcy law.''.
       (f) Exemptions.--Section 522(d)(10) of title 11, United 
     States Code, as amended by this Act, is further amended--
       (1) in subparagraph (C), by inserting ``or'' after the 
     semicolon;
       (2) by striking subparagraph (D); and
       (3) by striking ``(E)'' and inserting ``(D)''.
       (g) Personal Property.--
       (1) Section 521.--Section 521(a)(6) of title 11, United 
     States Code, as amended by this Act, is further amended by 
     striking ``of personal property'' and inserting ``of an item 
     of personal property purchased for more than $3,000''.
       (2) Section 362.--Section 362(h)(1) of title 11, United 
     States Code, as amended by this Act, is further amended by 
     striking ``to personal property'' and inserting ``to an item 
     of personal property purchased for more than $3,000''.

[[Page S2175]]

       (h) Restoring the Foundation for Secured Credit.--Section 
     1325(a) of title 11, United States Code, as amended by this 
     Act, is further amended in the flush matter at the end by 
     striking ``if the debt was incurred'' and inserting ``to the 
     extent that the debt was incurred to purchase that thing of 
     value''.
       (i) Household Goods.--
       (1) Definition.--Section 101 of title 11, United States 
     Code, as amended by this Act, is further amended--
       (A) by redesignating paragraph (27A) as paragraph (27B); 
     and
       (B) by inserting before paragraph (27B) the following:
       ``(27A) `household goods '--
       ``(A) includes tangible personal property normally found in 
     or around a residence; and
       ``(B) does not include motor vehicles used for 
     transportation purposes;''.
       (2) For purposes of section 522.--Section 522(f) of title 
     11, United States Code, as amended by this Act, is further 
     amended by striking paragraph (4).
       (j) Limitation on Luxury Goods.--Section 523(a)(2)(C)(i) of 
     title 11, United States Code, as amended by this Act, is 
     further amended--
       (1) in subclause (I)--
       (A) by striking ``$500'' and inserting ``$1,000'';
       (B) by striking ``90'' and inserting ``70''; and
       (C) by inserting ``if the creditor proves by a 
     preponderance of the evidence at a hearing that the goods or 
     services were not reasonably necessary for the maintenance or 
     support of the debtor or the dependents of the debtor'' after 
     ``nondischargeable''; and
       (2) in subclause (II)--
       (A) by striking ``$750'' and inserting ``$1,225''; and
       (B) by striking ``70'' and inserting ``60''.
       (k) Exceptions to Discharge.--Section 523 of title 11, 
     United States Code, as amended by this Act, is further 
     amended--
       (1) in subsection (c), by inserting ``or (14)(A),'' after 
     ``or (6)'' each place it appears; and
       (2) in subsection (d), by striking ``(a)(2)'' and inserting 
     ``(a)(2) or (14A)''.
                                 ______
                                 
  SA 68. Mr. KENNEDY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

        On page 191, between lines 11 and 12, insert the 
     following:
       (c) Further Limitation on Homestead Exemption.--Section 
     522(b) of title 11, United States Code, is amended by adding 
     at the end the following:
       ``(5) Notwithstanding any other provision of this section, 
     the maximum amount of a homestead exemption that may be 
     provided under State law shall be $300,000.''.
                                 ______
                                 
  SA 69. Mr. KENNEDY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

        On page 20, line 16, strike ``Act,'' and insert ``Act, 
     income from any job in which the debtor is no longer 
     employed, income from any activity which the debtor can no 
     longer engage in due to disability,''.
                                 ______
                                 
  SA 70. Mr. KENNEDY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

        On page 19, between lines 13 and 14, insert the following:
       ``(8)(A) No judge, United States trustee (or bankruptcy 
     administrator, if any), trustee, or other party in interest 
     may file a motion under paragraph (2) if the debtor, in any 
     consecutive 12-month period during the 2 years before the 
     date of the filing of the petition, failed to receive alimony 
     or child support income, or both, that such debtor was 
     entitled to receive pursuant to a valid court order, totaling 
     an amount in excess of 35 percent of the debtor's household 
     income for such 12-month period.''.
                                 ______
                                 
  SA 71. Mr. KENNEDY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

        Beginning on page 155, strike line 3 and all that follows 
     through page 156, line 5.
                                 ______
                                 
  SA 72. Mr. KENNEDY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

        On page 28, between lines 21 and 22, insert the following:

     SEC. 102A. PROTECTION OF FAMILIES BELOW MEDIAN INCOME.

       Section 707(b) of title 11, United States Code, as amended 
     by section 102, is further amended--
       (1) in paragraph (2)(C), by striking ``calculated'' and 
     inserting ``calculated, except that a debtor described in 
     paragraph (7) need only provide the calculations or other 
     information showing that the debtor meets the standards of 
     such paragraph''; and
       (2) in paragraph (7)(A), by striking ``No judge, United 
     States trustee (or bankruptcy administrator, if any), 
     trustee, or other party in interest may file a motion under 
     paragraph (2)'' and inserting ``Paragraph (2) does not apply, 
     and the court may not dismiss a case based on any form of 
     means testing,''.
                                 ______
                                 
  SA 73. Mr. KENNEDY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

        On page 19, between lines 13 and 14, insert the following:
       ``(8)(A) No judge, United States trustee (or bankruptcy 
     administrator, if any), trustee, or other party in interest 
     may file a motion under paragraph (2) if the debtor is a 
     victim of offshoring.
       ``(B) In this paragraph--
       ``(i) the term `victim of offshoring' means a debtor who, 
     during the 2 year period before the date of the filing of the 
     petition, lost a job in connection with offshoring; and
       ``(ii) the term `offshoring' means any action taken by an 
     employer the effect of which is to create, shift, or transfer 
     employment positions or facilities outside the United States 
     and which results in an employment loss.''.
                                 ______
                                 
  SA 74. Mr. KENNEDY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

        Beginning on page 499, strike line 3 and all that follows 
     through page 500, line 2, and insert the following:

     SEC. 1402. FRAUDULENT TRANSFERS AND OBLIGATIONS.

       Section 548 of title 11, United States Code, as amended by 
     section 907, is further amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking ``one year'' and inserting ``4 years'';
       (ii) by inserting ``(including any transfer to or for the 
     benefit of an insider under an employment contract)'' after 
     ``any transfer'';
       (iii) by inserting ``(including any obligation to or for 
     the benefit of an insider under an employment contract)'' 
     after ``any obligation'';
       (iv) in subparagraph (A), by striking ``or'' at the end;
       (v) in subparagraph (B)--

       (I) in clause (ii)--

       (aa) in subclause (II), by striking ``or'' at the end;
       (bb) in subclause (III), by striking the period at the end 
     and inserting ``; or''; and
       (cc) by adding at the end the following:
       ``(IV) made such transfer to or for the benefit of an 
     insider, or incurred such obligation to or for the benefit of 
     an insider, under an employment contract and not in the 
     ordinary course of business.''; and

       (II) by striking the period at the end and inserting ``; 
     or''; and

       (vi) by adding at the end the following:
       ``(C) made an excess benefit transfer or incurred an excess 
     benefit obligation to an insider, general partner, or other 
     affiliated person of the debtor, if the debtor--
       ``(i) was insolvent on the date on which the transfer was 
     made or the obligation was incurred; or
       ``(ii) became insolvent in part as a result of the transfer 
     or obligation.'';
       (2) in subsection (b), by striking ``one year'' and 
     inserting ``2 years''; and
       (3) in subsection (d)(2)--
       (A) in subparagraph (D), by striking ``and'' at the end;
       (B) in subparagraph (E), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(F) the terms `excess benefit transfer' and `excess 
     benefit obligation' mean--
       ``(i) a transfer or obligation, as applicable, to an 
     insider, general partner, or other affiliated person of the 
     debtor in an amount that is not less than 10 times the amount 
     of the mean transfer or obligation of a similar kind given to 
     nonmanagement employees during the calendar year in which the 
     transfer is made or the obligation is incurred; or
       ``(ii) if no such similar transfers were made to, or 
     obligations incurred for the benefit of, such nonmanagement 
     employees during such calendar year, a transfer or obligation 
     that is in an amount that is not less than 25 percent more 
     than the amount of any similar transfer or obligation made to 
     or incurred for the benefit of such insider, partner, or 
     other affiliated person of the debtor during the calendar 
     year before the year in which such transfer is made or 
     obligation is incurred.''.
                                 ______
                                 
  SA 75. Mr. KENNEDY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 502, between lines 17 and 18, insert the following:

     SEC. 1407. VENUE OF CASES UNDER TITLE 11.

       Section 1408 of title 28, United States Code, is amended to 
     read as follows:

     ``Sec. 1408. Venue of cases under title 11

       ``(a) Except as provided in section 1410, a case under 
     title 11 may be commenced--

[[Page S2176]]

       ``(1) if the debtor is not a corporation, in the district 
     court for the district--
       ``(A) in which the debtor's domicile, residence, principal 
     place of business in the United States, or principal assets 
     in the United States have been located--
       ``(i) during the 180-day period immediately preceding the 
     date of the commencement of the case; or
       ``(ii) for a longer portion of such 180-day period than the 
     debtor's domicile, residence, principal place of business in 
     the United States, or principal assets in the United States 
     were located in any other district; or
       ``(B) in which there is pending a case under title 11 
     concerning the debtor's affiliate, a general partner of the 
     debtor, or a partnership in which the debtor is a general 
     partner;
       ``(2) if the debtor is a corporation, in the district court 
     for the district--
       ``(A) in which the debtor's principal place of business in 
     the United States or principal assets in the United States 
     have been located--
       ``(i) during the 180-day period immediately preceding the 
     date of the commencement of the case; or
       ``(ii) for a longer portion of such 180-day period than the 
     debtor's principal place of business in the United States or 
     principal assets in the United States were located in any 
     other district; or
       ``(B) in which there is pending a case under title 11 
     concerning another corporation that directly or indirectly 
     owns, controls, or holds with power to vote 50 percent or 
     more of the outstanding voting securities of the debtor, if--
       ``(i) not later than 2 years before the date of the filing 
     of the petition in the debtor's case, the debtor's financial 
     statements were consolidated with those of the other 
     corporation in 1 or more reports filed under section 13 or 
     15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78(m) 
     and 78o(d); or
       ``(ii) the debtor has been controlled by the other 
     corporation for not less than 1 year before the date of the 
     filing of the petition in the debtor's case.
       ``(b) In this section, the definitions in section 101 of 
     title 11 shall apply.''.
                                 ______
                                 
  SA 76. Mr. KENNEDY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

        On page 502, between lines 17 and 18, insert the 
     following:

     SEC. 1407. FAIRNESS IN BANKRUPTCY LITIGATION.

       (a) Short Title.--This section may be cited as the 
     ``Fairness in Bankruptcy Litigation Act of 2005''.
       (b) Venue in Bankruptcy Cases.--Section 1408 of title 28, 
     United States Code, is amended--
       (1) by inserting ``(a)'' before ``Except'';
       (2) in paragraph (1), by striking ``or'' at the end; and
       (3) by striking paragraph (2) and inserting the following:
       ``(2) in which a case under title 11 concerning the 
     controlling corporation is pending, if--
       ``(A) the debtor is controlled by another corporation;
       ``(B) within the 730 days before the date of the debtor's 
     filing under title 11, the financial statements of the debtor 
     have been consolidated with those of the controlling 
     corporation in 1 or more reports filed under section 13 or 
     15(d) of the Securities Exchange Act of 1934; and
       ``(C) the controlling corporation is a debtor in a 
     proceeding under title 11; or
       ``(3) in which a case under title 11 concerning the 
     controlling corporation is pending, if--
       ``(A) the debtor is a corporation other than a corporation 
     described in paragraph (2);
       ``(B) the debtor has been controlled by another corporation 
     for not less than 365 days before the date of the filing of 
     the debtor's petition under title 11; and
       ``(C) the controlling corporation is a debtor in a 
     proceeding under title 11.
       ``(b) For purposes of subsection (a)--
       ``(1) if the debtor is a corporation, the domicile and 
     residence of the debtor are located where the debtor's 
     principal place of business is located; and
       ``(2) the term `control' has the meaning given that term in 
     section 2 of the Bank Holding Company Act of 1956 (12 U.S.C. 
     1841).''.
       (c) Cure or Waiver of Defects.--Section 1406(c) of title 
     28, United States Code, is amended to read as follows:
       ``(c) As used in this section--
       ``(1) the term `district court'--
       ``(A) includes the District Court of Guam, the District 
     Court of the Northern Mariana Islands, and the District Court 
     of the Virgin Islands; and
       ``(B) with regard to cases pending before a bankruptcy 
     court, includes a bankruptcy court; and
       ``(2) the term `district' includes the territorial 
     jurisdiction of each district court.''.
                                 ______
                                 
  SA 77. Mr. KENNEDY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 213, strike lines 1 through 7, and insert the 
     following:

     SEC. 410. VENUE OF CERTAIN PROCEEDINGS.

       (a) Title 11 Cases.--Section 1408 of title 28, United 
     States Code, is amended to read as follows:

     ``Sec. 1408. Venue of cases under title 11

       ``(a) Except as provided in section 1410, a case under 
     title 11 may be commenced--
       ``(1) if the debtor is not a corporation, in the district 
     court for the district--
       ``(A) in which the debtor's domicile, residence, principal 
     place of business in the United States, or principal assets 
     in the United States have been located--
       ``(i) during the 180-day period immediately preceding the 
     date of the commencement of the case; or
       ``(ii) for a longer portion of such 180-day period than the 
     debtor's domicile, residence, principal place of business in 
     the United States, or principal assets in the United States 
     were located in any other district; or
       ``(B) in which there is pending a case under title 11 
     concerning the debtor's affiliate, a general partner of the 
     debtor, or a partnership in which the debtor is a general 
     partner;
       ``(2) if the debtor is a corporation, in the district court 
     for the district--
       ``(A) in which the debtor's principal place of business in 
     the United States or principal assets in the United States 
     have been located--
       ``(i) during the 180-day period immediately preceding the 
     date of the commencement of the case; or
       ``(ii) for a longer portion of such 180-day period than the 
     debtor's principal place of business in the United States or 
     principal assets in the United States were located in any 
     other district; or
       ``(B) in which there is pending a case under title 11 
     concerning another corporation that directly or indirectly 
     owns, controls, or holds with power to vote 50 percent or 
     more of the outstanding voting securities of the debtor, if--
       ``(i) not later than 2 years before the date of the filing 
     of the petition in the debtor's case, the debtor's financial 
     statements were consolidated with those of the other 
     corporation in 1 or more reports filed under section 13 or 
     15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78(m) 
     and 78o(d); or
       ``(ii) the debtor has been controlled by the other 
     corporation for not less than 1 year before the date of the 
     filing of the petition in the debtor's case.
       ``(b) In this section, the definitions in section 101 of 
     title 11 shall apply.''.
       (b) Related Cases.--Section 1409(b) of title 28, United 
     States Code, is amended by striking ``or a consumer debt of 
     less than $5,000'' and inserting ``, a consumer debt of less 
     than $15,000, or a debt (excluding a consumer debt) against a 
     noninsider of less than $10,000,''.
                                 ______
                                 
  SA 78. Mr. KENNEDY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Section 502(b) of title 11, United States Code, is 
     amended--
       (1) in paragraph (8), by striking ``or'' after the 
     semicolon;
       (2) in paragraph (9), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(10) if such claim is for a credit transaction involving 
     a consumer as defined in section 103(h) of the Truth in 
     Lending Act (15 U.S.C. Sec. 1602(g)), interest included as 
     part of such claim exceeds the amount allowed by the laws of 
     the State, Territory or District where the debtor resides.
                                 ______
                                 
  SA 79. Mr. KENNEDY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       On page 132, between lines 5 and 6, insert the following:

     SEC. 234. CUSTOMER RIGHT TO PARTICIPATE IN BANKRUPTCY 
                   PROCEEDINGS.

       Section 1109(b) of title 11, United States Code, is amended 
     by inserting ``a customer of the debtor or a bona fide 
     nonprofit representative of customers of the debtor,'' after 
     ``a creditor,''.
                                 ______
                                 
  SA 80. Mr. KENNEDY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Beginning on page 179, strike line 1 and all that follows 
     through page 182, line 3, and insert the following:

     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) If the current monthly income of the debtor and 
     the debtor's spouse combined, when multiplied by 12, is not 
     less than--
       ``(A) in the case of a debtor in a household of 1 person, 
     the median family income of the applicable State for 1 
     earner;
       ``(B) in the case of a debtor in a household of 2, 3, or 4 
     individuals, the highest median family income of the 
     applicable State for a family of the same number or fewer 
     individuals; or
       ``(C) in the case of a debtor in a household exceeding 4 
     individuals, the highest median

[[Page S2177]]

     family income of the applicable State for a family of 4 or 
     fewer individuals, plus $525 per month for each individual in 
     excess of 4,

     the plan may not provide for payments over a period that is 
     longer than 3 years.
       ``(2) If the current monthly income of the debtor and the 
     debtor's spouse combined, when multiplied by 12, is less 
     than--
       ``(A) in the case of a debtor in a household of 1 person, 
     the median family income of the applicable State for 1 
     earner;
       ``(B) in the case of a debtor in a household of 2, 3, or 4 
     individuals, the highest median family income of the 
     applicable State for a family of the same number or fewer 
     individuals; or
       ``(C) in the case of a debtor in a household exceeding 4 
     individuals, the highest median family income of the 
     applicable State for a family of 4 or fewer individuals, plus 
     $525 per month for each individual in excess of 4,

     the plan may not provide for payments over a period that is 
     longer than 3 years.''.
                                 ______
                                 
  SA 81. Mr. KENNEDY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

        On page 155, strike line 8 and all that follows through 
     line 20, and insert the following:
       ``(I) consumer debts owed to a single creditor for a 
     purchase of a single item for more than $500 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 $1500 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
                                 ______
                                 
  SA 82. Mr. KENNEDY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

        On page 196, strike line 7 and all that follows through 
     line 21.
                                 ______
                                 
  SA 83. Mr. KENNEDY (for Mr. Leahy (for himself and Mr. Sarbanes)) 
proposed an amendment to the bill S. 256, to amend title 11 of the 
United States Code, and for other purposes; as follows:

       On page 215, strike lines 3 through 18, and insert the 
     following:

     SEC. 414. DEFINITION OF DISINTERESTED PERSON.

       Section 101(14)(B) of title 11, United States Code, is 
     amended by inserting ``, within five years before the date of 
     the filing of the petition,'' after ``was not''.
                                 ______
                                 
  SA 84. Mr. KERRY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 480, strike line 20, and insert the following:


     in by the creditor).

       ``(11a)(A) Repayment information that would apply to any 
     annual percentage rate applicable to the consumer's account 
     under the credit plan, including information regarding any 
     change in any annual percentage rate charged to the consumer 
     under the plan, appearing in conspicuous type on the front of 
     the first page of the first billing statement prepared 
     following the change, and accompanied by an appropriate 
     explanation, containing--
       ``(i) the words `THERE HAS BEEN A CHANGE IN THE ANNUAL 
     PERCENTAGE RATE FOR YOUR ACCOUNT.';
       ``(ii) the words `THE PREVIOUS INTEREST RATE:' followed by 
     the previous annual percentage rate charged to the consumer 
     under the plan; and
       ``(iii) the words `THE CURRENT INTEREST RATE' followed by 
     the current annual percentage rate charged to the consumer 
     under the plan.
       ``(B) Any creditor who fails to comply with subparagraph 
     (A), shall not be entitled to use the benefits and 
     presumptions provided to creditors under section 707(b)(2) of 
     title 11, United States Code.''.
                                 ______
                                 
  SA 85. Ms. CANTWELL (for herself, Mr. Ensign, and Mrs. Murray) 
submitted an amendment intended to be proposed by her to the bill S. 
256, to amend title 11 of the United States Code, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 407, line 5, strike the period and insert the 
     following: ; and
       (3) by adding at the end the following: ``Notwithstanding 
     any other provision of this title, contractual rights do not 
     permit a trustee to collect any termination payment, fee, or 
     charge under a terminated contract for the sale of 
     electricity if a governmental agency having jurisdiction over 
     the debtor's wholesale sales of electricity in the interstate 
     market has made a finding that the debtor engaged in 
     manipulation of the electricity market and revoked the 
     debtor's authority to make any market based sales of 
     electricity. The preceding sentence shall take effect on the 
     date of enactment of that sentence and shall be applicable to 
     any termination payment, fee, or charge that has not yet been 
     determined pursuant to a final, non-appealable order to be 
     owed to the debtor.''.
                                 ______
                                 
  SA 86. Ms. CANTWELL (for herself, Mr. Ensign, and Mrs. Murray) 
submitted an amendment intended to be proposed by her to the bill S. 
256, to amend title 11 of the United States Code, and for other 
purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. MANIPULATIVE CONDUCT BARRING RIGHT TO TERMINATION 
                   PAYMENTS.

       (a) In General.--Title 11 of the United States Code is 
     amended by adding after section 562, as added by this Act, 
     the following:

     ``SEC. 563. MANIPULATIVE CONDUCT BARRING RIGHT TO TERMINATION 
                   PAYMENTS.

       `` Notwithstanding any other provision of this title, a 
     trustee may not collect any termination payment, fee, or 
     charge under a terminated contract for the sale of 
     electricity if a governmental agency having jurisdiction over 
     the debtor's wholesale sales of electricity in the interstate 
     market has--
       ``(1) made a finding that the debtor engaged in 
     manipulation of the electricity market; and
       ``(2) revoked the debtor's authority to make any market 
     based sales of electricity.''.
       (b) Effective Date.--The amendment made by this section 
     shall take effect on the date of enactment of this Act and 
     shall be applicable to any termination payment, fee, or 
     charge that has not yet been determined pursuant to a final, 
     non-appealable order to be owed to the debtor.
                                 ______
                                 
  SA 87. Mr. FEINGOLD submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       On page 445, strike lines 10 through 13, and insert the 
     following:

     SEC. 1202. ADJUSTMENT OF DOLLAR AMOUNTS.

       Section 104(b) of title 11, United States Code, as amended 
     by this Act, is further amended--
       (1) by inserting ``101(19A),'' after ``101(18),'' each 
     place it appears;
       (2) by inserting ``522(f)(3),'' after ``522(d),'' each 
     place it appears;
       (3) by inserting ``541(b), 547(c)(9),'' after 
     ``523(a)(2)(C),'' each place it appears;
       (4) in pagagraph (1), by striking ``and 1325(b)(3)'' and 
     inserting ``1322(d), 1325(b), and 1326(b)(3) of this title 
     and section 1409(b) of title 28''; and
       (5) in paragraph (2), by striking ``and 1325(b)(3) of this 
     title'' and inserting ``1322(d), 1325(b), and 1326(b)(3) of 
     this title and section 1409(b) of title 28''.
                                 ______
                                 
  SA 88. Mr. FEINGOLD submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       Beginning on page 230, strike line 7 and all that follows 
     through page 231, line 6, and insert 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 a hearing; or
       ``(B) the court, for cause, orders otherwise;
       ``(2) the plan and a disclosure statement (if any) shall be 
     filed not later than 300 days after the date of the order for 
     relief, unless that period is--
       ``(A) extended as provided by this subsection, after notice 
     and a hearing; or
       ``(B) the court, for cause, orders otherwise; 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.''.
                                 ______
                                 
  SA 89. Mr. FEINGOLD submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       Beginning on page 221, strike line 1 and all that follows 
     through page 240, line 4, and insert the following:

            Subtitle B--Small Business Bankruptcy Provisions

     SEC. 431. SCHEDULING CONFERENCES.

       Section 105(d) of title 11, United States Code, is 
     amended--

[[Page S2178]]

       (1) in the matter preceding paragraph (1), by striking ``, 
     may''; and
       (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''.

     SEC. 432. SERIAL FILER PROVISIONS.

       Section 362 of title 11, United States Code, as amended by 
     sections 106, 305, and 311, is amended--
       (1) in subsection (k), as so redesignated by section 305--
       (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) of this 
     subsection against such entity shall be limited to actual 
     damages.''; and
       (2) by adding at the end the following:
       ``(n)(1) Except as provided in paragraph (2), subsection 
     (a) does not apply in a case 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 acquired substantially all of 
     the assets or business of a small business debtor described 
     in subparagraph (A), (B), or (C), unless such entity 
     establishes by a preponderance of the evidence that such 
     entity acquired substantially all of the assets or business 
     of such small business debtor in good faith and not for the 
     purpose of evading this paragraph.
       ``(2) Paragraph (1) does not apply--
       ``(A) to an involuntary case involving no collusion by the 
     debtor with creditors; or
       ``(B) to the filing of a petition if--
       ``(i) the debtor proves by a preponderance of the evidence 
     that the filing of the petition resulted from circumstances 
     beyond the control of the debtor not foreseeable at the time 
     the case then pending was filed; and
       ``(ii) 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.''.
                                 ______
                                 
  SA 90. Mr. FEINGOLD submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       Beginning on page 167, strike line 3 and all that follows 
     through page 169, line 25, and insert the following:
       (a) Notice.--Section 342 of title 11, United States Code, 
     is amended--
       (1) in subsection (c), by adding before the period at the 
     end the following: ``unless the creditor cannot with 
     reasonable effort identify the account to which the notice 
     applies without the information required by this 
     subsection''; and
       (2) by adding at the end the following:
       ``(e) At any time in a case under chapter 7 or 13 
     concerning an individual debtor, a creditor may file with the 
     court and serve on the debtor a notice of the address to be 
     used for service of notice on the creditor in that case. 
     Beginning 10 days after the creditor files and serves the 
     notice, any notice that the court or the debtor is required 
     to give shall be given at the address contained in the 
     creditor's notice of address.
       ``(f)(1) An entity may file with any bankruptcy court a 
     notice of address to be used by all the bankruptcy courts or 
     by particular bankruptcy courts, as so specified by such 
     entity at the time such notice is filed, to provide notice to 
     such entity in all cases under chapters 7 and 13 pending in 
     the courts with respect to which such notice is filed, in 
     which such entity is a creditor.
       ``(2) In any case filed under chapter 7 or 13, any notice 
     required to be provided by a court with respect to which a 
     notice is filed under paragraph (1), to such entity later 
     than 30 days after the filing of such notice under paragraph 
     (1) shall be provided to such address unless with respect to 
     a particular case a different address is specified in a 
     notice filed and served in accordance with subsection (e).
       ``(3) In any case filed under chapter 7 or 13, any notice 
     required to be provided by any party in interest with respect 
     to which a notice is filed under paragraph (1), to such 
     entity later than 120 days after the filing of such notice 
     under paragraph (1) shall be provided to such address unless 
     with respect to a particular case a different address is 
     specified in a notice filed and served in accordance with 
     subsection (e).
       ``(4) A notice filed under paragraph (1) may be withdrawn 
     by such entity.
       ``(g)(1) Notice given to a creditor other than as provided 
     in this section is not effective 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 by a filing in 
     accordance with subsection (d) or (e) and establishes 
     reasonable procedures so that bankruptcy notices received by 
     the creditor are actually delivered to the person or 
     department, notice is not considered to have been brought to 
     the attention of the creditor until that person or department 
     receives the notice.
       ``(2) The court may not impose either a sanction under 
     section 362(h) or a sanction that a court may otherwise 
     impose on account of a violation of the stay under section 
     362(a) or a failure to comply with section 542 or 543 on 
     account of any action of the creditor unless the action 
     occurs after the creditor has received either notice of the 
     commencement of the case effective under this section or 
     other actual notice reasonably calculated to come to the 
     attention of the creditor, the creditor's attorney, the 
     creditor's agent taking the action, or other appropriate 
     person.''.
                                 ______
                                 
  SA 91. Mr. FEINGOLD submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

        On page 205, between lines 16 and 17, insert the 
     following:

     SEC. 332. FRAUDULENT INVOLUNTARY BANKRUPTCY.

       (a) Short Title.--This section may be cited as the 
     ``Involuntary Bankruptcy Improvement Act of 2005''.
       (b) Involuntary Cases.--Section 303 of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(l)(1) If--
       ``(A) the petition under this section is false or contains 
     any materially false, fictitious, or fraudulent statement;
       ``(B) the debtor is an individual; and
       ``(C) the court dismisses such petition,
     the court, upon the motion of the debtor, shall seal all the 
     records of the court relating to such petition, and all 
     references to such petition.
       ``(2) If the debtor is an individual and the court 
     dismisses a petition under this section, the court may enter 
     an order prohibiting all consumer reporting agencies (as 
     defined in section 603(f) of the Fair Credit Reporting Act 
     (15 U.S.C. 1681a(f))) from making any consumer report (as 
     defined in section 603(d) of that Act) that contains any 
     information relating to such petition or to the case 
     commenced by the filing of such petition.
       ``(3) Upon the expiration of the statute of limitations 
     described in section 3282 of title 18, for a violation of 
     section 152 or 157 of such title, the court, upon the motion 
     of the debtor and for good cause, may expunge any records 
     relating to a petition filed under this section.''.
       (c) Bankruptcy Fraud.--Section 157 of title 18, United 
     States Code, is amended by inserting ``, including a 
     fraudulent involuntary bankruptcy petition under section 303 
     of such title'' after ``title 11''.
                                 ______
                                 
  SA 92. Mr. FEINGOLD submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       Beginning on page 33, strike line 1 and all that follows 
     through page 45, line 6, and insert the following:

     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 such 
     individual has, during the 180-day period preceding the date 
     of filing of the petition by such 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 such 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 the bankruptcy administrator, if any) determines 
     that the approved nonprofit budget and credit counseling 
     agencies for such district are not reasonably able to provide 
     adequate services to the additional individuals who would 
     otherwise seek credit counseling from such agencies by reason 
     of the requirements of paragraph (1).
       ``(B) The United States trustee (or the bankruptcy 
     administrator, if any) who makes a determination described in 
     subparagraph (A) shall review such determination not later 
     than 1 year after the date of such determination, and not 
     less frequently than annually thereafter. Notwithstanding the 
     preceding sentence, a nonprofit budget and credit counseling 
     agency may be disapproved by the United States trustee (or 
     the bankruptcy administrator, if any) at any time.
       ``(3) The court may waive the requirements of paragraph 
     (1), based on the sworn statement filed by the debtor under 
     section 521(b)(3). The court may condition the waiver on the 
     debtor`s meeting the requirements of paragraph (1) within a 
     specified period of time after the court's waiver.''.
       (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 filing the petition, the debtor failed to 
     complete an instructional course concerning personal 
     financial management described in section 111, except that 
     this

[[Page S2179]]

     paragraph shall not apply with respect to a debtor who 
     resides in a district for which the United States trustee (or 
     the bankruptcy administrator, if any) determines that the 
     approved instructional courses are not adequate to service 
     the additional individuals who would otherwise be required to 
     complete such instructional courses under this section, or if 
     the court finds that exigent circumstances merit a waiver of 
     the requirements of this paragraph (The United States trustee 
     (or the bankruptcy administrator, if any) who makes a 
     determination described in this paragraph shall review such 
     determination not later than 1 year after the date of such 
     determination, and not less frequently than annually 
     thereafter.).''.
       (c) Chapter 13 Discharge.--Section 1328 of title 11, United 
     States Code, is amended by adding at the end the following:
       ``(g)(1) 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.
       ``(2) Paragraph (1) shall not apply with respect to a 
     debtor who resides in a district for which the United States 
     trustee (or the bankruptcy administrator, if any) determines 
     that the approved instructional courses are not adequate to 
     service the additional individuals who would otherwise be 
     required to complete such instructional course by reason of 
     the requirements of paragraph (1), or if the court finds that 
     exigent circumstances merit a waiver of the requirements of 
     this paragraph.
       ``(3) The United States trustee (or the bankruptcy 
     administrator, if any) who makes a determination described in 
     paragraph (2) shall review such determination not later than 
     1 year after the date of such determination, and not less 
     frequently than annually 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 of subsection (a), an 
     individual debtor, other than a debtor who is excused by 
     section 109(h)(2) from meeting the requirements of section 
     109(h)(1), 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) describing the services provided to the 
     debtor;
       ``(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); or
       ``(3) a sworn statement that sets forth exigent 
     circumstances that preclude the filing of a certificate 
     including--
       ``(A) the debtor is facing foreclosure, garnishment, 
     attachment, eviction, levy of execution, utility shutoff, or 
     similar claim enforcement procedure that would deprive the 
     debtor of property or necessary services before the debtor 
     could obtain counseling;
       ``(B) the debtor is unable to obtain counseling services 
     due to lack of transportation, incapacity, or disability;
       ``(C) the debtor attempted to obtain counseling within the 
     five-day period immediately before filing bankruptcy but was 
     unsuccessful in obtaining counseling for circumstances beyond 
     the debtor's control;
       ``(D) the debtor cannot afford costs associated with the 
     counseling program; or
       ``(E) the debtor met the requirements of section 109(h)(1) 
     and a certificate was unavailable, lost, or unreasonably 
     denied.''.
       (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 shall maintain a publicly available list 
     of--
       ``(1) nonprofit budget and credit counseling agencies that 
     provide 1 or more services described in section 109(h) 
     currently approved by the United States trustee (or the 
     bankruptcy administrator, if any); and
       ``(2) instructional courses concerning personal financial 
     management currently approved by the United States trustee 
     (or the bankruptcy administrator, if any), as applicable.
       ``(b) The United States trustee (or bankruptcy 
     administrator, if any) shall only approve a nonprofit budget 
     and credit counseling agency or an instructional course 
     concerning personal financial management as follows:
       ``(1) The United States trustee (or bankruptcy 
     administrator, if any) shall have thoroughly reviewed the 
     qualifications of the nonprofit budget and credit counseling 
     agency or of the provider of the instructional course under 
     the standards set forth in this section, and the services or 
     instructional courses that will be offered by such agency or 
     such provider, and may require such agency or such provider 
     that has sought approval to provide information with respect 
     to such review.
       ``(2) The United States trustee (or bankruptcy 
     administrator, if any) shall have determined that such agency 
     or such instructional course fully satisfies the applicable 
     standards set forth in this section.
       ``(3) If a nonprofit budget and credit counseling agency or 
     instructional course did not appear on the approved list for 
     the district under subsection (a) immediately before approval 
     under this section, approval under this subsection of such 
     agency or such instructional course shall be for a 
     probationary period not to exceed 6 months.
       ``(4) At the conclusion of the applicable probationary 
     period under paragraph (3), the United States trustee (or 
     bankruptcy administrator, if any) may only approve for an 
     additional 1-year period, and for successive 1-year periods 
     thereafter, an agency or instructional course that has 
     demonstrated during the probationary or applicable subsequent 
     period of approval that such agency or instructional course--
       ``(A) has met the standards set forth under this section 
     during such period; and
       ``(B) can satisfy such standards in the future.
       ``(5) Not later than 30 days after any final decision under 
     paragraph (4), an interested person may seek judicial review 
     of such decision in the appropriate district court of the 
     United States.
       ``(c)(1) The United States trustee (or the bankruptcy 
     administrator, if any) shall only approve a nonprofit budget 
     and credit counseling agency that demonstrates that it will 
     provide qualified counselors, maintain adequate provision for 
     safekeeping and payment of client funds, provide adequate 
     counseling with respect to client credit problems, and deal 
     responsibly and effectively with other matters relating to 
     the quality, effectiveness, and financial security of the 
     services it provides.
       ``(2) To be approved by the United States trustee (or the 
     bankruptcy administrator, if any), a nonprofit budget and 
     credit counseling agency shall, at a minimum--
       ``(A) have a board of directors the majority of which--
       ``(i) are not employed by such agency; and
       ``(ii) will not directly or indirectly benefit financially 
     from the outcome of the counseling services provided by such 
     agency;
       ``(B) if a fee is charged for counseling services, charge a 
     reasonable fee, and provide services without regard to 
     ability to pay the fee;
       ``(C) provide for safekeeping and payment of client funds, 
     including an annual audit of the trust accounts and 
     appropriate employee bonding;
       ``(D) provide full disclosures to a client, including 
     funding sources, counselor qualifications, possible impact on 
     credit reports, and any costs of such program that will be 
     paid by such client and how such costs will be paid;
       ``(E) provide adequate counseling with respect to a 
     client's credit problems that includes an analysis of such 
     client's current financial condition, factors that caused 
     such financial condition, and how such client can develop a 
     plan to respond to the problems without incurring negative 
     amortization of debt;
       ``(F) provide trained counselors who receive no commissions 
     or bonuses based on the outcome of the counseling services 
     provided by such agency, and who have adequate experience, 
     and have been adequately trained to provide counseling 
     services to individuals in financial difficulty, including 
     the matters described in subparagraph (E);
       ``(G) demonstrate adequate experience and background in 
     providing credit counseling; and
       ``(H) have adequate financial resources to provide 
     continuing support services for budgeting plans over the life 
     of any repayment plan.
       ``(d) The United States trustee (or the bankruptcy 
     administrator, if any) shall only approve an instructional 
     course concerning personal financial management--
       ``(1) for an initial probationary period under subsection 
     (b)(3) if the course will provide at a minimum--
       ``(A) trained personnel with adequate experience and 
     training in providing effective instruction and services;
       ``(B) learning materials and teaching methodologies 
     designed to assist debtors in understanding personal 
     financial management and that are consistent with stated 
     objectives directly related to the goals of such 
     instructional course;
       ``(C) adequate facilities situated in reasonably convenient 
     locations at which such instructional course is offered, 
     except that such facilities may include the provision of such 
     instructional course by telephone or through the Internet, if 
     such instructional course is effective; and
       ``(D) the preparation and retention of reasonable records 
     (which shall include the debtor's bankruptcy case number) to 
     permit evaluation of the effectiveness of such instructional 
     course, including any evaluation of satisfaction of 
     instructional course requirements for each debtor attending 
     such instructional course, which shall be available for 
     inspection and evaluation by the Executive Office for United 
     States Trustees, the United States trustee (or the bankruptcy 
     administrator, if any), or the chief bankruptcy judge for the 
     district in which such instructional course is offered; and
       ``(2) for any 1-year period if the provider thereof has 
     demonstrated that the course meets the standards of paragraph 
     (1) and, in addition--
       ``(A) has been effective in assisting a substantial number 
     of debtors to understand personal financial management;
       ``(B) is otherwise likely to increase substantially the 
     debtor's understanding of personal financial management; and

[[Page S2180]]

       ``(C) if a fee is charged for such course, is offered for a 
     reasonable fee and offered to all persons without regard to 
     ability to pay the fee.
       ``(e) The district court may, at any time, investigate the 
     qualifications of a nonprofit budget and credit counseling 
     agency referred to in subsection (a), and request production 
     of documents to ensure the integrity and effectiveness of 
     such agency. The district court may, at any time, remove from 
     the approved list under subsection (a) a nonprofit budget and 
     credit counseling agency upon finding such agency does not 
     meet the qualifications of subsection (b).
       ``(f) The United States trustee (or the bankruptcy 
     administrator, if any) shall notify the clerk that a 
     nonprofit budget and credit counseling agency or an 
     instructional course is no longer approved, in which case the 
     clerk shall remove it from the list maintained under 
     subsection (a).
       ``(g)(1) No nonprofit budget and credit counseling agency 
     may provide to a credit reporting agency information 
     concerning whether a debtor has received or sought 
     instruction concerning personal financial management from 
     such agency.
       ``(2) A nonprofit budget and credit counseling agency 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.
       ``(j) On request of a party in interest, the court shall 
     issue an order under subsection (c) confirming that the 
     automatic stay has been terminated.''.
                                 ______
                                 
  SA 93. Mr. FEINGOLD submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       On page 112, strike line 17 and all that follows through 
     page 120, line 24, and insert the following:
       ``(12A) `debt relief agency' means any person, other than 
     an attorney or an employee of an attorney, who provides any 
     bankruptcy assistance to an assisted person in return for the 
     payment of money or other valuable consideration, or who is a 
     bankruptcy petition preparer under section 110, but does not 
     include--
       ``(A) any person who is an officer, director, employee, or 
     agent of a person who provides such assistance or of the 
     bankruptcy petition preparer;
       ``(B) a nonprofit organization that is exempt from taxation 
     under section 501(c)(3) of the Internal Revenue Code of 1986;
       ``(C) a creditor of such assisted person, to the extent 
     that the creditor is assisting such assisted person to 
     restructure any debt owed by such assisted person to the 
     creditor;
       ``(D) a depository institution (as defined in section 3 of 
     the Federal Deposit Insurance Act) or any Federal credit 
     union or State credit union (as those terms are defined in 
     section 101 of the Federal Credit Union Act), or any 
     affiliate or subsidiary of such depository institution or 
     credit union; or
       ``(E) an author, publisher, distributor, or seller of works 
     subject to copyright protection under title 17, when acting 
     in such capacity.''.
       (b) Conforming Amendment.--Section 104(b) of title 11, 
     United States Code, is amended by inserting ``101(3),'' after 
     ``sections'' each place it appears.

     SEC. 227. RESTRICTIONS ON DEBT RELIEF AGENCIES.

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

     ``Sec. 526. Restrictions on debt relief agencies

       ``(a) A debt relief agency shall not--
       ``(1) fail to perform any service that such agency informed 
     an assisted person or prospective assisted person it would 
     provide in connection with a case or proceeding under this 
     title;
       ``(2) make any statement, or counsel or advise any assisted 
     person or prospective assisted person to make a statement in 
     a document filed in a case or proceeding under this title, 
     that is untrue and misleading, or that upon the exercise of 
     reasonable care, should have been known by such agency to be 
     untrue or misleading;
       ``(3) misrepresent to any assisted person or prospective 
     assisted person, directly or indirectly, affirmatively or by 
     material omission, with respect to--
       ``(A) the services that such agency will provide to such 
     person; or
       ``(B) the benefits and risks that may result if such person 
     becomes a debtor in a case under this title; or
       ``(4) advise an assisted person or prospective assisted 
     person to incur more debt in contemplation of such person 
     filing a case under this title or to pay an attorney or 
     bankruptcy petition preparer fee or charge for services 
     performed as part of preparing for or representing a debtor 
     in a case under this title.
       ``(b) Any waiver by any assisted person of any protection 
     or right provided under this section shall not be enforceable 
     against the debtor by any Federal or State court or any other 
     person, but may be enforced against a debt relief agency.
       ``(c)(1) Any contract for bankruptcy assistance between a 
     debt relief agency and an assisted person that does not 
     comply with the material requirements of this section, 
     section 527, or section 528 shall be void and may not be 
     enforced by any Federal or State court or by any other 
     person, other than such assisted person.
       ``(2) Any debt relief agency shall be liable to an assisted 
     person in the amount of any fees or charges in connection 
     with providing bankruptcy assistance to such person that such 
     debt relief agency has received, for actual damages, and for 
     reasonable attorneys' fees and costs if such agency is found, 
     after notice and a hearing, to have--
       ``(A) intentionally or negligently failed to comply with 
     any provision of this section, section 527, or section 528 
     with respect to a case or proceeding under this title for 
     such assisted person;
       ``(B) provided bankruptcy assistance to an assisted person 
     in a case or proceeding under this title that is dismissed or 
     converted to a case under another chapter of this title 
     because of such agency's intentional or negligent failure to 
     file any required document including those specified in 
     section 521; or
       ``(C) intentionally or negligently disregarded the material 
     requirements of this title or the Federal Rules of Bankruptcy 
     Procedure applicable to such agency.
       ``(3) In addition to such other remedies as are provided 
     under State law, whenever the chief law enforcement officer 
     of a State, or an official or agency designated by a State, 
     has reason to believe that any person has violated or is 
     violating this section, the State--
       ``(A) may bring an action to enjoin such violation;
       ``(B) may bring an action on behalf of its residents to 
     recover the actual damages of assisted persons arising from 
     such violation, including any liability under paragraph (2); 
     and
       ``(C) in the case of any successful action under 
     subparagraph (A) or (B), shall be awarded the costs of the 
     action and reasonable attorneys' fees as determined by the 
     court.
       ``(4) The district courts of the United States for 
     districts located in the State shall have concurrent 
     jurisdiction of any action under subparagraph (A) or (B) of 
     paragraph (3).
       ``(5) Notwithstanding any other provision of Federal law 
     and in addition to any other remedy provided under Federal or 
     State law, if the court, on its own motion or on the motion 
     of the United States trustee or the debtor, finds that a 
     person intentionally violated this section, or engaged in a 
     clear and consistent pattern or practice of violating this 
     section, the court may--
       ``(A) enjoin the violation of such section; or
       ``(B) impose an appropriate civil penalty against such 
     person.
       ``(d) No provision of this section, section 527, or section 
     528 shall--
       ``(1) annul, alter, affect, or exempt any person subject to 
     such sections from complying with any law of any State except 
     to the extent that such law is inconsistent with those 
     sections, and then only to the extent of the inconsistency; 
     or
       ``(2) be deemed to limit or curtail the authority or 
     ability--
       ``(A) of a State or subdivision or instrumentality thereof, 
     to determine and enforce qualifications for the practice of 
     law under the laws of that State; or
       ``(B) of a Federal court to determine and enforce the 
     qualifications for the practice of law before that court.''.
       (b) Conforming Amendment.--The table of sections for 
     chapter 5 of title 11, United States Code, is amended by 
     inserting after the item relating to section 525, the 
     following:

``526. Restrictions on debt relief agencies.''.

     SEC. 228. DISCLOSURES.

       (a) Disclosures.--Subchapter II of chapter 5 of title 11, 
     United States Code, as amended by section 227, is amended by 
     adding at the end the following:

     ``Sec. 527. Disclosures

       ``(a) A debt relief agency providing bankruptcy assistance 
     to an assisted person shall provide--
       ``(1) the written notice required under section 342(b)(1); 
     and
       ``(2) to the extent not covered in the written notice 
     described in paragraph (1), and not later than 3 business 
     days after the first date on which a debt relief agency first 
     offers to provide any bankruptcy assistance services to an 
     assisted person, a clear and conspicuous written notice 
     advising assisted persons that--
       ``(A) all information that the assisted person is required 
     to provide with a petition and thereafter during a case under 
     this title is required to be complete, accurate, and 
     truthful;

[[Page S2181]]

       ``(B) all assets and all liabilities are required to be 
     completely and accurately disclosed in the documents filed to 
     commence the case, and the replacement value of each asset as 
     defined in section 506 must be stated in those documents 
     where requested after reasonable inquiry to establish such 
     value;
       ``(C) current monthly income, the amounts specified in 
     section 707(b)(2), and, in a case under chapter 13 of this 
     title, disposable income (determined in accordance with 
     section 707(b)(2)), are required to be stated after 
     reasonable inquiry; and
       ``(D) information that an assisted person provides during 
     their case may be audited pursuant to this title, and that 
     failure to provide such information may result in dismissal 
     of the case under this title or other sanction, including a 
     criminal sanction.
       ``(b) A debt relief agency providing bankruptcy assistance 
     to an assisted person shall provide each assisted person at 
     the same time as the notices required under subsection (a)(1) 
     the following statement, to the extent applicable, or one 
     substantially similar. The statement shall be clear and 
     conspicuous and shall be in a single document separate from 
     other documents or notices provided to the assisted person:
       `` `IMPORTANT INFORMATION ABOUT BANKRUPTCY ASSISTANCE 
     SERVICES FROM A BANKRUPTCY PETITION PREPARER.
       `` `If you decide to seek bankruptcy relief, you can 
     represent yourself, you can hire an attorney to represent 
     you, or you can get help in some localities from a bankruptcy 
     petition preparer who is not an attorney. THE LAW REQUIRES A 
     BANKRUPTCY PETITION PREPARER TO GIVE YOU A WRITTEN CONTRACT 
     SPECIFYING WHAT THE BANKRUPTCY PETITION PREPARER WILL DO FOR 
     YOU AND HOW MUCH IT WILL COST. Ask to see the contract before 
     you hire anyone.' ''
                                 ______
                                 
  SA 94. Mr. FEINGOLD submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       Beginning on page 24, strike line 9 and all that follows 
     through page 26, line 7, and insert the following:
       (h) Applicability of Means Test to Chapter 13.--Section 
     1325(b) of title 11, United States Code, is amended by 
     striking paragraph (2) and inserting the following:
       ``(2) For purposes of this subsection, the term `disposable 
     income' means current monthly income received by the debtor 
     (other than child support payments, foster care payments, or 
     disability payments for a dependent child made in accordance 
     with applicable nonbankruptcy law to the extent reasonably 
     necessary to be expended for such child) less amounts 
     reasonably necessary to be expended--
       ``(A)(i) for the maintenance or support of the debtor or a 
     dependent of the debtor, or for a domestic support 
     obligation, that first becomes payable after the date the 
     petition is filed; and
       ``(ii) for charitable contributions (that meet the 
     definition of `charitable contribution' under section 
     548(d)(3) to a qualified religious or charitable entity or 
     organization (as defined in section 548(d)(4)) in an amount 
     not to exceed 15 percent of gross income of the debtor for 
     the year in which the contributions are made; and
       ``(B) if the debtor is engaged in business, for the payment 
     of expenditures necessary for the continuation, preservation, 
     and operation of such business.
       ``(3) Amounts reasonably necessary to be expended under 
     paragraph (2)(A)(i), shall be determined in accordance with 
     subparagraphs (A) and (B) of section 707(b)(2), if the debtor 
     has current monthly income, when multiplied by 12, greater 
     than--
       ``(A) in the case of a debtor in a household of 1 person, 
     the median family income of the applicable State for 1 
     earner;
       ``(B) in the case of a debtor in a household of 2, 3, or 4 
     individuals, the highest median family income of the 
     applicable State for a family of the same number or fewer 
     individuals; or
       ``(C) in the case of a debtor in a household exceeding 4 
     individuals, the highest median family income of the 
     applicable State for a family of 4 or fewer individuals, plus 
     $525 per month for each individual in excess of 4.''.
                                 ______
                                 
  SA 95. Mr. FEINGOLD submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       On page 265, between lines 18 and 19, insert the following:

     SEC. 707A. DISCHARGE UNDER CHAPTER 13.

       Section 1328(a) of title 11, United States Code, as amended 
     by this Act, is further amended--
       (1) in paragraph (2), by striking ``(1)(B), (1)(C),'';
       (2) in paragraph (3), by striking ``or'' after the 
     semicolon;
       (3) in paragraph (4), by striking the period at the end and 
     inserting ``; or''; and
       (4) by adding at the end the following:
       ``(5) for taxes with respect to which the debtor filed a 
     fraudulent return.''.
                                 ______
                                 
  SA 96. Mr. FEINGOLD submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       Beginning on page 24, strike line 16 and all that follows 
     through page 26, line 7, and insert the following:
       ``(2)(A) For purposes of this subsection, the term 
     `disposable income' means current monthly income received by 
     the debtor (other than child support payments, foster care 
     payments, or disability payments for a dependent child made 
     in accordance with applicable nonbankruptcy law to the extent 
     reasonably necessary to be expended for such child) less 
     amounts reasonably necessary to be expended--
       ``(i)(I) for the maintenance or support of the debtor or a 
     dependent of the debtor, or for a domestic support 
     obligation, that first becomes payable after the date the 
     petition is filed; and
       ``(II) for charitable contributions (that meet the 
     definition of `charitable contribution' under section 
     548(d)(3) to a qualified religious or charitable entity or 
     organization (as defined in section 548(d)(4)) in an amount 
     not to exceed 15 percent of gross income of the debtor for 
     the year in which the contributions are made; and
       ``(ii) if the debtor is engaged in business, for the 
     payment of expenditures necessary for the continuation, 
     preservation, and operation of such business.
       ``(B) However, the debtor's disposable income may be 
     adjusted if the debtor demonstrates special circumstances 
     that justify adjustments of current monthly income for which 
     there is no reasonable alternative, as described in section 
     707(b)(2)(B) of this title.
       ``(3)(A) Amounts reasonably necessary to be expended under 
     paragraph (2) shall be determined in accordance with 
     subparagraphs (A) and (B) of section 707(b)(2), if the debtor 
     has current monthly income, when multiplied by 12, greater 
     than--
       ``(i) in the case of a debtor in a household of 1 person, 
     the median family income of the applicable State for 1 
     earner;
       ``(ii) in the case of a debtor in a household of 2, 3, or 4 
     individuals, the highest median family income of the 
     applicable State for a family of the same number or fewer 
     individuals; or
       ``(iii) in the case of a debtor in a household exceeding 4 
     individuals, the highest median family income of the 
     applicable State for a family of 4 or fewer individuals, plus 
     $525 per month for each individual in excess of 4.
       ``(B) However, this paragraph shall not apply if the debtor 
     demonstrates special circumstances that justify adjustments 
     of current monthly income for which there is no reasonable 
     alternative, as described in section 707(b)(2)(B) of this 
     title, and which bring the debtor's income below the 
     applicable amount set forth in this paragraph.''.
       (i) Reduction of the Term of the Plan for Certain 
     Debtors.--Section 1329 of title 11, United States Code, is 
     amended by adding at the end the following:
       ``(d) Notwithstanding paragraphs (1)(B) and (4) of section 
     1325(b), if the actual income of the debtor, or in a joint 
     case the debtor and the debtor's spouse, has dropped below 
     the applicable amount stated in section 1325(b)(3), either 
     before or after the petition, and is unlikely to increase 
     above such amounts within 1 year, the debtor's plan may be 
     modified to reduce the term of the plan to a time period 
     equal to or greater than the applicable commitment period in 
     section 1325(b)(4)(A)(i) and the debtor shall not be subject 
     to section 1325(b)(3).''.
                                 ______
                                 
  SA 97. Mr. FEINGOLD submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       On page 182, between lines 3 and 4, insert the following:

     SEC. 318A. APPLICABILITY OF MEANS TEST AND PLANS TO HAVE A 5-
                   YEAR DURATION IN CERTAIN CASES.

       (a) Applicability of Means Test to Chapter 13.--Section 
     1325(b) of title 11, United States Code, as amended by this 
     Act, is further amended--
       (1) in paragraph (2), by inserting ``or, if lower and not 
     likely to increase substantially in the 2 months after the 
     order for relief, the debtor's monthly income on the date of 
     the order for relief under this chapter'' after ``received by 
     the debtor'';
       (2) in paragraph (3), by inserting ``(or, if lower and not 
     likely to increase substantially in the 2 months after the 
     order for relief, the debtor's monthly income on the date of 
     the order for relief under this chapter)'' after ``if the 
     debtor has current monthly income''; and
       (3) in paragraph (4)--
       (A) in subparagraph (A)(ii), by striking ``debtor and the 
     debtor's spouse combined'' and inserting ``debtor, and in a 
     joint case the debtor and the debtor's spouse, or, if lower 
     and not likely to increase substantially in the 2 months 
     after the order for relief, the monthly income on the date of 
     the order for relief under this chapter'';
       (B) in subparagraph (A)(ii)(III), by striking ``and'' after 
     the semicolon;
       (C) in subparagraph (B), by striking the period at the end 
     and inserting ``; and''; and
       (D) by adding at the end the following:
       ``(C) provided that if the debtor's income decreases during 
     the case to less than the amount set forth in subparagraph 
     (A)(ii), and is not likely again to exceed that amount within 
     1 month, may be reduced to 3 years.''.
       (b) Chapter 13 Plans To Have a 5-year Duration in Certain 
     Cases.--Section 1322(d)

[[Page S2182]]

     of title 11, United States Code, as amended by this Act, is 
     further amended--
       (1) in paragraph (1), by striking ``debtor and the debtor's 
     spouse combined'' and inserting ``debtor, and in a joint case 
     the debtor and the debtor's spouse, or, if lower and not 
     likely to increase substantially in the 2 months after the 
     order for relief, the monthly income on the date of the order 
     for relief under this chapter''; and
       (2) in paragraph (2), by striking ``debtor and the debtor's 
     spouse combined'' and inserting ``debtor, and in a joint case 
     the debtor and the debtor's spouse, or, if lower and not 
     likely to increase substantially in the 2 months after the 
     order for relief, the monthly income on the date of the order 
     for relief under this chapter''.
                                 ______
                                 
  SA 98. Mr. FEINGOLD submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

        On page 112, line 17, insert ``, other than an attorney or 
     an employee of an attorney'' after ``any person''.
       On page 120, lines 12 and 13, strike ``AN ATTORNEY OR'' and 
     insert ``A''.
       On page 120, line 19, strike ``AN ATTORNEY OR'' and insert 
     ``A''.
       On page 120, lines 21 and 22, strike ``ATTORNEY OR''.
                                 ______
                                 
  SA 99. Mr. FEINGOLD submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       On page 205, between lines 16 and 17, insert the following:

     SEC. 332. NO BANKRUPTCY FOR INSOLVENT POLITICAL COMMITTEES.

       Section 109 of title 11, United States Code, is amended by 
     adding at the end the following:
       ``(i) A political committee subject to the jurisdiction of 
     the Federal Election Commission under Federal election laws 
     may not be a debtor under this title.''.
                                 ______
                                 
  SA 100. Mr. FEINGOLD submitted an amendment intended to be proposed 
by him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       On page 63, between lines 3 and 4, insert the following:
       ``(4) Nothing in this section shall preclude a court from 
     ordering disgorgement of payments accepted, or other remedies 
     under this title or other applicable law, when a creditor has 
     accepted payments under such agreement or in anticipation of 
     such agreement and the agreement is not enforceable.
                                 ______
                                 
  SA 101. Mr. FEINGOLD submitted an amendment intended to be proposed 
by him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       Beginning on page 222, strike line 23 and all that follows 
     through page 223, line 21, and insert the following:
       ``(A) subject to subparagraph (B), means a person engaged 
     in commercial or business activities (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 or operating real property or activities incidental 
     thereto) that has aggregate noncontingent liquidated secured 
     and unsecured debts as of the date of the petition or the 
     date of the order for relief in an amount not more than 
     $1,250,000 (excluding debts owed to 1 or more affiliates or 
     insiders) for a case in which the United States trustee has 
     not appointed under section 1102(a)(1) a committee of 
     unsecured creditors or where the court has determined that 
     the committee of unsecured creditors is not 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 $1,250,000 
     (excluding debt owed to 1 or more affiliates or insiders);''.
                                 ______
                                 
  SA 102. Mr. BINGAMAN submitted an amendment intended to be proposed 
by him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Beginning on page 14, strike line 1 and all that follows 
     through page 16, line 13, and insert the following:
       ``(4) The court, on its own initiative or on the motion of 
     a party in interest may order the debtor to reimburse the 
     trustee for all reasonable costs in prosecuting a motion 
     filed under section 707(b), including reasonable attorneys' 
     fees, if--
       ``(A) a trustee files a motion for dismissal or conversion 
     under this subsection; and
       ``(B) the court grants such motion.
       ``(5)(A) Except as provided in subparagraph (B) and subject 
     to paragraph (6), the court, on its own initiative or on the 
     motion of a party in interest, in accordance with the 
     procedures described in rule 9011 of the Federal Rules of 
     Bankruptcy Procedure, may award a debtor all reasonable costs 
     (including reasonable attorneys' fees) in contesting a motion 
     filed by a party in interest (other than a trustee or United 
     States trustee (or bankruptcy administrator, if any)) under 
     this subsection if--
       ``(i) the court does not grant the motion; and
       ``(ii) the court finds that--
       ``(I) the position of the party that filed the motion 
     violated rule 9011 of the Federal Rules of Bankruptcy 
     Procedure; or
       ``(II) the motion was made solely for the purpose of 
     coercing a debtor into waiving a right guaranteed to the 
     debtor under this title.
                                 ______
                                 
  SA 103. Mr. LEAHY (for himself and Mr. Sarbanes) submitted an 
amendment intended to be proposed by him to the bill S. 256, to amend 
title 11 of the United States Code, and for other purposes; which was 
ordered to lie on the table; as follows:

        On page 215, strike lines 3 through 18.
                                 ______
                                 
  SA 104. Mr. GRAHAM (for himself, Mr. Durbin, and Mr. Leahy) submitted 
an amendment intended to be proposed by him to the bill S. 256, to 
amend title 11 of the United States Code, and for other purposes; which 
was ordered to lie on the table; as follows:

       On page 473, after line 9, by inserting the following:

     ``SEC. 1236. ADDITIONAL AMENDMENTS TO TITLE 11, UNITED STATES 
                   CODE.

       Section 507(a) of title 11, United States Code, as amended 
     by sections 212 and 253, is amended by adding at the end the 
     following:
       ``(11) Eleventh, allowed unsecured claims of customs 
     brokers (as defined in section 641 of the Tariff Act of 1930 
     (19 U.S.C. 1641)) and sureties (as provided in section 623 of 
     the Tariff Act of 1930 (19 U.S.C. 1623)) for duties, taxes, 
     or other charges paid to the United States Customs Service on 
     behalf of the debtor arising out of the importation of 
     merchandise entered for consumption within one year before 
     the date of the filing of the petition.''.
                                 ______
                                 
  SA 105. Mr. AKAKA submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       On page 45, strike lines 22 through 24, and insert the 
     following:
       (a) Reduction of Claim.--Section 502 of title 11, United 
     States Code, is amended--
       (1) in subsection (b)--
       (A) in paragraph (8), by striking ``or'' at the end;
       (B) in paragraph (9), by striking the period at the end and 
     inserting ``; or''; and
       (C) by adding at the end the following:
       ``(10) such consumer debt is an unsecured claim arising 
     from a debt to a creditor that does not have, as of the date 
     of the order for relief, a policy of waiving additional 
     interest for all debtors who participate in a debt management 
     plan administered by a nonprofit budget and credit counseling 
     agency described in section 111(a).''; and
       (2) by adding at the end the following:
                                 ______
                                 
  SA 106. Mr. AKAKA submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 45, strike lines 22 through 24, and insert the 
     following:
       (a) Reduction of Claim.--Section 502 of title 11, United 
     States Code, is amended--
       (1) in subsection (b)--
       (A) in paragraph (8), by striking ``or'' at the end;
       (B) in paragraph (9), by striking the period at the end and 
     inserting ``; or''; and
       (C) by adding at the end the following:
       ``(10) such claim is based on a debt that is secured by, or 
     conditioned upon--
       ``(A) a personal check held for future deposit; or
       ``(B) electronic access to a bank account.''; and
       (2) by adding at the end the following:
                                 ______
                                 
  SA 107. Mr. AKAKA submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 100, strike line 14 and all that follows through 
     line 17 and insert the following:

     SEC. 222. SENSE OF CONGRESS.

       It is the sense of Congress that the Financial Literacy and 
     Education Commission, in consultation with State and local 
     governments and non-profit and private sector entities, 
     should work, as part of the Commission's national strategy to 
     improve the financial literacy and education of all Americans 
     (including for those in elementary school or secondary school 
     or enrolled in other institutions of learning), to improve 
     financial education and literacy campaigns, including those 
     that are curricula based, that have the goal of reducing the 
     number of individuals who file for bankruptcy.
                                 ______
                                 
  SA 108. Mr. CORZINE submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for

[[Page S2183]]

other purposes; which was ordered to lie on the table; as follows:

        On page 132, between lines 5 and 6, insert the following:

     SEC. 234. LIMITING CLAIMS ARISING FROM VIOLATIONS OF STATE 
                   LAW.

       Section 502(b) of title 11, United States Code, is 
     amended--
       (1) in paragraph (8), by striking ``or'' at the end;
       (2) in paragraph (9), by striking the period at the end and 
     inserting ``; or''; and
       (3) by adding at the end the following:
       ``(10) such claim is for a secured debt that would 
     otherwise be enforceable against the debtor, and, in 
     connection with such secured debt, a party other than the 
     debtor violated any applicable State law that related to--
       ``(A) interest, fees, or other charges imposed in 
     connection with such agreement, including--
       ``(i) fees paid to third parties, such as yield spread 
     premiums and other payments made to mortgage brokers, whether 
     by the debtor, the debtor, or a third party; and
       ``(ii) charges for premiums for insurance, debt 
     cancellation, and debt suspension products, whether such 
     product was voluntary or involuntary and whether the 
     beneficiary of such product is the debtor, the creditor, or a 
     third party;
       ``(B) consideration of the ability of the debtor to repay 
     such secured debt;
       ``(C) fees imposed if the debtor repays all or part of such 
     secured debt before it is due;
       ``(D) amortization of such secured debt, including without 
     limitation negative amortization and balloon payments;
       ``(E) refinancing of debt;
       ``(F) counseling of the borrower prior to consummation of 
     the transaction from which the secured debt arose; or
       ``(G) any other matter that the court determines to be 
     relevant to the fair disposition of the claim, with due 
     consideration of the intent of the applicable State law.''.
                                 ______
                                 
  SA 109. Mr. DURBIN submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 473, between lines 9 and 10, insert the following:

     SEC. 1236. MANAGEMENT OF BUSINESS DEBTORS.

       (a) In General.--Chapter 3 of title 11, United States Code, 
     is amended--
       (1) in section 321(a), by striking ``7, 12,'' each place it 
     appears and inserting ``12'';
       (2) in section 326--
       (A) in subsection (a), by striking ``disbursed or turned 
     over'' and inserting ``disbursed, turned over, or, solely for 
     the purposes of section 331, held for disbursement or 
     turnover''; and
       (B) in subsection (c), by striking ``(c)'' and all that 
     follows through ``in the case,'', and inserting the 
     following:
       ``(c) If more than 1 person serves as trustee in the case--
       ``(1) the compensation of each such person shall be 
     determined without regard to subsection (a) or (b); and
       ``(2)'';
       (3) in section 327(d), by striking ``as attorney or 
     accountant'' and inserting ``in any professional capacity'';
       (4) in section 328--
       (A) in subsection (a)--
       (i) by striking ``or on a contingent fee basis'' and 
     inserting ``, on a fixed or percentage fee basis, or on a 
     contingent fee basis and with indemnification and 
     exculpation''; and
       (ii) by striking ``different from the compensation'' and 
     inserting ``, indemnification, or exculpation different from 
     the compensation, indemnification, or exculpation''; and
       (B) in subsection (b), by striking ``as attorney or 
     accountant'' and inserting ``in any professional capacity'';
       (5) in section 347(a)--
       (A) by striking ``726, 1226, or 1326 of this title'' and 
     inserting ``726, 1101, 1226, or 1326'';
       (B) by striking ``7, 12, or 13 of this title'' and 
     inserting ``7, 11, 12, or 13''; and
       (C) by striking ``into the court and disposed of under 
     chapter 129 of title 28'' and inserting ``to the United 
     States Trustee System Fund, established under section 589a of 
     title 28''; and
       (6) in section 362(h), by striking ``individual'' and 
     inserting ``entity''.
       (b) Chapter 11.--Chapter 11 of title 11, United States 
     Code, is amended--
       (1) in section 1107, by adding at the end the following:
       ``(c) The court, on request of a party in interest, and 
     after notice and a hearing, may appoint an individual as the 
     responsible person for the debtor in possession--
       ``(1) who shall manage and operate the affairs of the 
     debtor (as defined by rule 9001(5) of the Federal Rules of 
     Bankruptcy Procedure);
       ``(2) who shall not be required to be an officer or 
     employee of the debtor;
       ``(3) who shall not be considered an insider of the debtor; 
     and
       ``(4) whose designation shall not vitiate the liability of 
     any other person chargeable under the law with the duties 
     imposed upon the debtor under this title or by any other 
     provision of law.''; and
       (2) in section 1114(d), by striking ``shall appoint'' and 
     inserting ``shall direct the United States trustee to 
     appoint''.
                                 ______
                                 
  SA 110. Mr. DURBIN submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       On page 18, strike line 1 and all that follows through 
     ``(2)'' on line 3, and insert the following:
       (7)(A) Notwithstanding paragraph (2), a debtor described in 
     this paragraph need only provide the calculations or other 
     information showing that the debtor meets the standards of 
     this paragraph. Paragraph (2) shall not apply, and the court 
     may not dismiss a case based on any form of means testing,
                                 ______
                                 
  SA 111. Mr. DURBIN submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       On page 13, between lines 13 and 14, insert the following:
       ``(D) Subparagraphs (A) through (C) shall not apply, and 
     the court may not dismiss or convert a case based on any form 
     of means testing, if--
       ``(i) the debtor or the debtor's spouse is a member of the 
     armed forces--
       ``(I) on active duty (as defined in section 101(d)(1) of 
     title 10); or
       ``(II) performing a homeland defense activity (as defined 
     in section 901(1) of title 32);
       ``(ii) the debtor or the debtor's spouse is a veteran (as 
     defined in section 101(2) of title 38), and the indebtedness 
     occurred primarily during a period of not less than 180 days, 
     during which he or she was--
       ``(I) on active duty (as defined in section 101(d)(1) of 
     title 10); or
       ``(II) performing a homeland defense activity (as defined 
     in section 901(1) of title 32);
       ``(iii) the debtor or the debtor's spouse is a reserve of 
     the armed forces, and the indebtedness occurred primarily 
     during a period of not less than 180 days, during which he or 
     she was--
       ``(I) on active duty (as defined in section 101(d)(1) of 
     title 10); or
       ``(II) performing a homeland defense activity (as defined 
     in section 901(1) of title 32); or
       ``(iv) the debtor's spouse died while serving as a member 
     of the armed forces--
       ``(I) on active duty (as defined in section 101(d)(1) of 
     title 10); or
       ``(II) performing a homeland defense activity (as defined 
     in section 901(1) of title 32).
                                 ______
                                 
  SA 112. Mr. DURBIN submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       On page 13, between lines 13 and 14, insert the following:
       ``(D) Subparagraphs (A) through (C) shall not apply, and 
     the court may not dismiss or convert a case based on any form 
     of means testing, if the debtor is a disabled veteran (as 
     defined in section 3741(1) of title 38), and the indebtedness 
     occurred primarily during a period during which he or she 
     was--
       ``(i) on active duty (as defined in section 101(d)(1) of 
     title 10); or
       ``(ii) performing a homeland defense activity (as defined 
     in section 901(1) of title 32).
                                 ______
                                 
  SA 113. Mr. REID submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

        On page 452, strike line 15 and all that follows through 
     page 458, line 16, and insert the following:

     SEC. 1223. BANKRUPTCY JUDGESHIPS.

       (a) Short Title.--This section may be cited as the 
     ``Bankruptcy Judgeship Act of 2005''.
       (b) Authorization for Additional Temporary Bankruptcy 
     Judgeships.--The following temporary 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:
       (1) One additional bankruptcy judgeship for the eastern and 
     western districts of Arkansas.
       (2) Four additional bankruptcy judgeships for the district 
     of Delaware.
       (3) Four additional bankruptcy judgeships for the middle 
     district of Florida.
       (4) One additional bankruptcy judgeship for the northern 
     district of Florida.
       (5) Two additional bankruptcy judgeships for the southern 
     district of Florida.
       (6) Two additional bankruptcy judgeships for the northern 
     district of Georgia.
       (7) Two additional bankruptcy judgeships for the southern 
     district of Georgia.
       (8) One additional bankruptcy judgeship for the northern 
     district of Indiana.
       (9) One additional bankruptcy judgeship for the eastern 
     district of Kentucky.
       (10) Four additional bankruptcy judgeships for the district 
     of Maryland.
       (11) Four additional bankruptcy judgeships for the eastern 
     district of Michigan.
       (12) One additional bankruptcy judgeship for the northern 
     district of Mississippi.
       (13) One additional bankruptcy judgeship for the southern 
     district of Mississippi.
       (14) Two additional bankruptcy judgeships for the district 
     of Nevada.
       (15) One additional bankruptcy judgeship for the district 
     of New Jersey.
       (16) One additional bankruptcy judgeship for the northern 
     district of New York.

[[Page S2184]]

       (17) Two additional bankruptcy judgeships for the southern 
     district of New York.
       (18) One additional bankruptcy judgeship for the eastern 
     district of North Carolina.
       (19) One additional bankruptcy judgeship for the western 
     district of North Carolina.
       (20) One additional bankruptcy judgeship for the southern 
     district of Ohio.
       (21) One additional bankruptcy judgeship for the eastern 
     district of Pennsylvania.
       (22) One additional bankruptcy judgeship for the middle 
     district of Pennsylvania.
       (23) One additional bankruptcy judgeship for the western 
     district of Pennsylvania.
       (24) One additional bankruptcy judgeship for the district 
     of Puerto Rico.
       (25) One additional bankruptcy judgeship for the district 
     of South Carolina.
       (26) Two additional bankruptcy judgeships for the western 
     district of Tennessee.
       (27) One additional bankruptcy judgeship for the eastern 
     district of Texas.
       (28) One additional bankruptcy judgeship for the district 
     of Utah.
       (29) One additional bankruptcy judgeship for the eastern 
     district of Virginia.
       (c) Extension of Existing Temporary Bankruptcy Judgeship.--
       (1) In general.--The temporary bankruptcy judgeship 
     authorized for the northern district of Alabama under section 
     3(a)(1) of the Bankruptcy Judgeship Act of 1992 (28 U.S.C. 
     152 note) is extended until the first vacancy occurring in 
     the office of a bankruptcy judge in such district resulting 
     from the death, retirement, resignation, or removal of a 
     bankruptcy judge and occurring not less than 5 years after 
     the date of enactment of this Act.
       (2) Applicability of other provisions.--All other 
     provisions of section 3 of the Bankruptcy Judgeship Act of 
     1992 (28 U.S.C. 152 note) remain applicable to the temporary 
     bankruptcy judgeship referred to in paragraph (1).
       (d) Transfer of Bankruptcy Judgeship Shared by the Middle 
     District of Georgia and the Southern District of Georgia.--
     The bankruptcy judgeship shared by the southern district of 
     Georgia and the middle district of Georgia shall be converted 
     to a bankruptcy judgeship for the middle district of Georgia.
       (e) Conversion of existing temporary bankruptcy 
     judgeships.--
       (1) District of delaware.--The temporary bankruptcy 
     judgeship authorized for the district of Delaware under 
     section 3(a)(3) of the Bankruptcy Judgeship Act of 1992 (28 
     U.S.C. 152 note), shall be converted to a permanent 
     bankruptcy judgeship.
       (2) Southern district of illinois.--The temporary 
     bankruptcy judgeship authorized for the southern district of 
     Illinois under section 3(a)(4) of the Bankruptcy Judgeship 
     Act of 1992 (28 U.S.C. 152 note), shall be converted to a 
     permanent bankruptcy judgeship.
       (3) District of puerto rico.--The temporary bankruptcy 
     judgeship authorized for the district of Puerto Rico under 
     section 3(a)(7) of the Bankruptcy Judgeship Act of 1992 (28 
     U.S.C. 152 note), shall be converted to a permanent 
     bankruptcy judgeship.
       (f) Technical Amendments.--Section 152(a)(2) of title 28, 
     United States Code, is amended--
       (1) in the item relating to the eastern and western 
     districts of Arkansas, by striking ``3'' and inserting ``4'';
       (2) in the item relating to the district of Delaware, by 
     striking ``1'' and inserting ``6'';
       (3) in the item relating to the middle district of Florida, 
     by striking ``8'' and inserting ``12'';
       (4) in the item relating to the northern district of 
     Florida, by striking ``1'' and inserting ``2'';
       (5) in the item relating to the southern district of 
     Florida, by striking ``5'' and inserting ``7'';
       (6) in the item relating to the northern district of 
     Georgia, by striking ``8'' and inserting ``10'';
       (7) in the item relating to the middle district of Georgia, 
     by striking ``2'' and inserting ``3'';
       (8) in the item relating to the southern district of 
     Georgia, by striking ``2'' and inserting ``4'';
       (9) in the item relating to the middle and southern 
     districts of Georgia, by striking ``Middle and Southern . . . 
     . . . . . . . . . . . . 1'';
       (10) in the item relating to the southern district of 
     Illinois, by striking ``1'' and inserting ``2'';
       (11) in the item relating to the northern district of 
     Indiana, by striking ``3'' and inserting ``4'';
       (12) in the item relating to the eastern district of 
     Kentucky, by striking ``2'' and inserting ``3'';
       (13) in the item relating to the district of Maryland, by 
     striking ``4'' and inserting ``8'';
       (14) in the item relating to the eastern district of 
     Michigan, by striking ``4'' and inserting ``8'';
       (15) in the item relating to the northern district of 
     Mississippi, by striking ``1'' and inserting ``2'';
       (16) in the item relating to the southern district of 
     Mississippi, by striking ``2'' and inserting ``3'';
       (17) in the item relating to the district of Nevada, by 
     striking ``3'' and inserting 5'';
       (18) in the item relating to the district of New Jersey, by 
     striking ``8'' and inserting ``9'';
       (19) in the item relating to the northern district of New 
     York, by striking ``2'' and inserting ``3'';
       (20) in the item relating to the southern district of New 
     York, by striking ``9'' and inserting ``11'';
       (21) in the item relating to the eastern district of North 
     Carolina, by striking ``2'' and inserting ``3'';
       (22) in the item relating to the western district of North 
     Carolina, by striking ``2'' and inserting ``3'';
       (23) in the item relating to the southern district of Ohio, 
     by striking ``7'' and inserting ``8'';
       (24) in the item relating to the eastern district of 
     Pennsylvania, by striking ``5'' and inserting ``6'';
       (25) in the item relating to the middle district of 
     Pennsylvania, by striking ``2'' and inserting ``3'';
       (26) in the item relating to the western district of 
     Pennsylvania, by striking ``4'' and inserting ``5'';
       (27) in the item relating to the district of Puerto Rico, 
     by striking ``2 and inserting ``4'';
       (28) in the item relating to the district of South 
     Carolina, by striking ``2'' and inserting ``3'';
       (29) in the item relating to the western district of 
     Tennessee, by striking ``4'' and inserting ``6'';
       (30) in the item relating to the eastern district of Texas, 
     by striking ``2'' and inserting ``3'';
       (31) in the item relating to the district of Utah, by 
     striking ``3'' and inserting ``4''; and
       (32) in the item relating to the eastern district of 
     Virginia, by striking ``5'' and inserting ``6''.
                                 ______
                                 
  SA 114. Mr. REID submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 454, strike line 15 and all that follows through 
     page 457, line 22, and insert the following:
       (2) Technical and conforming amendments.--Section 152(a)(2) 
     of title 28, United States Code, is amended--
       (A) in the item relating to the eastern district of 
     California, by striking ``6'' and inserting ``7'';
       (B) in the item relating to the central district of 
     California, by striking ``21'' and inserting ``24'';
       (C) in the item relating to the district of Delaware, by 
     striking ``1'' and inserting ``6'';
       (D) in the item relating to the southern district of 
     Florida, by striking ``5'' and inserting ``7'';
       (E) in the item relating to the southern district of 
     Georgia, by striking ``2'' and inserting ``3'';
       (F) in the item relating to the district of Maryland, by 
     striking ``4'' and inserting ``7'';
       (G) in the item relating to the eastern district of 
     Michigan, by striking ``4'' and inserting ``5'';
       (H) in the item relating to the southern district of 
     Mississippi, by striking ``2'' and inserting ``3'';
       (I) in the item relating to the district of New Jersey, by 
     striking ``8'' and inserting ``9'';
       (J) in the item relating to the eastern district of New 
     York, by striking ``6'' and inserting ``7'';
       (K) in the item relating to the northern district of New 
     York, by striking ``2'' and inserting ``3'';
       (L) in the item relating to the southern district of New 
     York, by striking ``9'' and inserting ``10'';
       (M) in the item relating to the eastern district of North 
     Carolina, by striking ``2'' and inserting ``3'';
       (N) in the item relating to the eastern district of 
     Pennsylvania, by striking ``5'' and inserting ``6'';
       (O) in the item relating to the middle district of 
     Pennsylvania, by striking ``2'' and inserting ``3'';
       (P) in the item relating to the district of Puerto Rico, by 
     striking ``2 and inserting ``4'';
       (Q) in the item relating to the western district of 
     Tennessee, by striking ``4'' and inserting ``5'';
       (R) in the item relating to the eastern district of 
     Virginia, by striking ``5'' and inserting ``6'';
       (S) in the item relating to the district of South Carolina, 
     by striking ``2'' and inserting ``3'';
       (T) in the item relating to the district of Nevada, by 
     striking ``3'' and inserting ``4'';
       (U) in the item relating to the northern district of 
     Alabama, by striking ``5'' and inserting ``6''; and
       (V) in the item relating to the eastern district of 
     Tennessee, by striking ``3'' and inserting ``4''.
       (c) Conversion of Existing Temporary Bankruptcy 
     Judgeships.--The temporary bankruptcy judgeships authorized 
     for the northern district of Alabama, the district of 
     Delaware, the district of Puerto Rico, and the eastern 
     district of Tennessee under paragraphs (1), (3), (7), and (9) 
     of section 3(a) of the Bankruptcy Judgeship Act of 1992 (28 
     U.S.C. 152 note), shall be converted to permanent bankruptcy 
     judgeships.
       (d) Authorization for Additional Bankruptcy Judgeships.--
     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:

[[Page S2185]]

       (1) One additional bankruptcy judgeship for the eastern and 
     western districts of Arkansas.
       (3) Four additional bankruptcy judgeships for the middle 
     district of Florida.
       (4) One additional bankruptcy judgeship for the northern 
     district of Florida.
       (6) Two additional bankruptcy judgeships for the northern 
     district of Georgia.
       (7) One additional bankruptcy judgeship for the southern 
     district of Georgia.
       (8) One additional bankruptcy judgeship for the northern 
     district of Indiana.
       (9) One additional bankruptcy judgeship for the eastern 
     district of Kentucky.
       (10) One additional bankruptcy judgeship for the district 
     of Maryland.
       (11) Three additional bankruptcy judgeships for the eastern 
     district of Michigan.
       (12) One additional bankruptcy judgeship for the northern 
     district of Mississippi.
       (14) Two additional bankruptcy judgeships for the district 
     of Nevada.
       (17) One additional bankruptcy judgeships for the southern 
     district of New York.
       (19) One additional bankruptcy judgeship for the western 
     district of North Carolina.
       (20) One additional bankruptcy judgeship for the southern 
     district of Ohio.
       (23) One additional bankruptcy judgeship for the western 
     district of Pennsylvania.
       (26) One additional bankruptcy judgeships for the western 
     district of Tennessee.
       (27) One additional bankruptcy judgeship for the eastern 
     district of Texas.
       (28) One additional bankruptcy judgeship for the district 
     of Utah.
       (e) Extension of Existing Temporary Bankruptcy Judgeship.--
       (1) In general.--The temporary bankruptcy judgeship 
     authorized for the northern district of Alabama under section 
     3(a)(1) of the Bankruptcy Judgeship Act of 1992 (28 U.S.C. 
     152 note) is extended until the first vacancy occurring in 
     the office of a bankruptcy judge in such district resulting 
     from the death, retirement, resignation, or removal of a 
     bankruptcy judge and occurring not less than 5 years after 
     the date of enactment of this Act.
       (2) Applicability of other provisions.--All other 
     provisions of section 3 of the Bankruptcy Judgeship Act of 
     1992 (28 U.S.C. 152 note) remain applicable to the temporary 
     bankruptcy judgeship referred to in paragraph (1).
       (f) Transfer of Bankruptcy Judgeship Shared by the Middle 
     District of Georgia and the Southern District of Georgia.--
     The bankruptcy judgeship shared by the southern district of 
     Georgia and the middle district of Georgia shall be converted 
     to a bankruptcy judgeship for the middle district of Georgia.
       (g) Conversion of existing temporary bankruptcy 
     judgeships.--
       (1) District of delaware.--The temporary bankruptcy 
     judgeship authorized for the district of Delaware under 
     section 3(a)(3) of the Bankruptcy Judgeship Act of 1992 (28 
     U.S.C. 152 note), shall be converted to a permanent 
     bankruptcy judgeship.
       (2) Southern district of illinois.--The temporary 
     bankruptcy judgeship authorized for the southern district of 
     Illinois under section 3(a)(4) of the Bankruptcy Judgeship 
     Act of 1992 (28 U.S.C. 152 note), shall be converted to a 
     permanent bankruptcy judgeship.
       (3) District of puerto rico.--The temporary bankruptcy 
     judgeship authorized for the district of Puerto Rico under 
     section 3(a)(7) of the Bankruptcy Judgeship Act of 1992 (28 
     U.S.C. 152 note), shall be converted to a permanent 
     bankruptcy judgeship.
       (h) Technical Amendments.--Section 152(a)(2) of title 28, 
     United States Code, is amended--
       (1) in the item relating to the eastern and western 
     districts of Arkansas, by striking ``3'' and inserting ``4'';
       (2) in the item relating to the district of Delaware, by 
     striking ``1'' and inserting ``6'';
       (3) in the item relating to the middle district of Florida, 
     by striking ``8'' and inserting ``12'';
       (4) in the item relating to the northern district of 
     Florida, by striking ``1'' and inserting ``2'';
       (5) in the item relating to the southern district of 
     Florida, by striking ``5'' and inserting ``7'';
       (6) in the item relating to the northern district of 
     Georgia, by striking ``8'' and inserting ``10'';
       (7) in the item relating to the middle district of Georgia, 
     by striking ``2'' and inserting ``3'';
       (8) in the item relating to the southern district of 
     Georgia, by striking ``2'' and inserting ``4'';
       (9) in the item relating to the middle and southern 
     districts of Georgia, by striking ``Middle and Southern . . . 
     . . . . . . . . . . . . 1'';
       (10) in the item relating to the southern district of 
     Illinois, by striking ``1'' and inserting ``2'';
       (11) in the item relating to the northern district of 
     Indiana, by striking ``3'' and inserting ``4'';
       (12) in the item relating to the eastern district of 
     Kentucky, by striking ``2'' and inserting ``3'';
       (13) in the item relating to the district of Maryland, by 
     striking ``4'' and inserting ``8'';
       (14) in the item relating to the eastern district of 
     Michigan, by striking ``4'' and inserting ``8'';
       (15) in the item relating to the northern district of 
     Mississippi, by striking ``1'' and inserting ``2'';
       (16) in the item relating to the southern district of 
     Mississippi, by striking ``2'' and inserting ``3'';
       (17) in the item relating to the district of Nevada, by 
     striking ``3'' and inserting 5'';
       (18) in the item relating to the district of New Jersey, by 
     striking ``8'' and inserting ``9'';
       (19) in the item relating to the northern district of New 
     York, by striking ``2'' and inserting ``3'';
       (20) in the item relating to the southern district of New 
     York, by striking ``9'' and inserting ``11'';
       (21) in the item relating to the eastern district of North 
     Carolina, by striking ``2'' and inserting ``3'';
       (22) in the item relating to the western district of North 
     Carolina, by striking ``2'' and inserting ``3'';
       (23) in the item relating to the southern district of Ohio, 
     by striking ``7'' and inserting ``8'';
       (24) in the item relating to the eastern district of 
     Pennsylvania, by striking ``5'' and inserting ``6'';
       (25) in the item relating to the middle district of 
     Pennsylvania, by striking ``2'' and inserting ``3'';
       (26) in the item relating to the western district of 
     Pennsylvania, by striking ``4'' and inserting ``5'';
       (27) in the item relating to the district of Puerto Rico, 
     by striking ``2 and inserting ``4'';
       (28) in the item relating to the district of South 
     Carolina, by striking ``2'' and inserting ``3'';
       (29) in the item relating to the western district of 
     Tennessee, by striking ``4'' and inserting ``6'';
       (30) in the item relating to the eastern district of Texas, 
     by striking ``2'' and inserting ``3'';
       (31) in the item relating to the district of Utah, by 
     striking ``3'' and inserting ``4''; and
       (32) in the item relating to the eastern district of 
     Virginia, by striking ``5'' and inserting ``6''.
                                 ______
                                 
  SA 115. Mr. BIDEN submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

        On page 452, strike line 15 and all that follows through 
     page 458, line 16, and insert the following:

     SEC. 1223. BANKRUPTCY JUDGESHIPS.

       (a) Short Title.--This section may be cited as the 
     ``Bankruptcy Judgeship Act of 2005''.
       (b) Authorization for Additional Bankruptcy Judgeships.--
     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:
       (1) One additional bankruptcy judgeship for the eastern and 
     western districts of Arkansas.
       (2) Four additional bankruptcy judgeships for the district 
     of Delaware.
       (3) Two additional bankruptcy judgeships for the middle 
     district of Florida.
       (4) Two additional bankruptcy judgeships for the southern 
     district of Florida.
       (5) Two additional bankruptcy judgeships for the northern 
     district of Georgia.
       (6) One additional bankruptcy judgeship for the southern 
     district of Georgia.
       (7) Three additional bankruptcy judgeships for the district 
     of Maryland.
       (8) Two additional bankruptcy judgeships for the eastern 
     district of Michigan.
       (9) Two additional bankruptcy judgeships for the district 
     of Nevada.
       (10) One additional bankruptcy judgeship for the district 
     of New Jersey.
       (11) Two additional bankruptcy judgeships for the southern 
     district of New York.
       (12) One additional bankruptcy judgeship for the eastern 
     district of North Carolina.
       (13) One additional bankruptcy judgeship for the eastern 
     district of Pennsylvania.
       (14) One additional bankruptcy judgeship for the district 
     of South Carolina.
       (15) Two additional bankruptcy judgeships for the western 
     district of Tennessee.
       (16) One additional bankruptcy judgeship for the district 
     of Utah.
       (17) One additional bankruptcy judgeship for the eastern 
     district of Virginia.
       (c) Temporary Bankruptcy Judgeships.--
       (1) Authorization for additional temporary bankruptcy 
     judgeships.--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 district of 
     Puerto Rico.
       (B) One additional bankruptcy judgeship for the northern 
     district of New York.
       (C) One additional bankruptcy judgeship for the middle 
     district of Pennsylvania.
       (D) One additional bankruptcy judgeship for the district of 
     Maryland.
       (E) One additional bankruptcy judgeship for the northern 
     district of Mississippi.
       (F) One additional bankruptcy judgeship for the southern 
     district of Mississippi.
       (G) One additional bankruptcy judgeship for the southern 
     district of Georgia.
       (2) Vacancies.--
       (A) In general.--The first vacancy in the office of 
     bankruptcy judge in each of the judicial districts set forth 
     in paragraph (1)--

[[Page S2186]]

       (i) occurring 5 years or more after the appointment date of 
     the bankruptcy judge appointed under paragraph (1) to such 
     office; and
       (ii) resulting from the death, retirement, resignation, or 
     removal of a bankruptcy judge,
     shall not be filled.
       (B) Term expiration.--In the case of a vacancy resulting 
     from the expiration of the term of a bankruptcy judge not 
     described in subparagraph (A), that judge shall be eligible 
     for reappointment as a bankruptcy judge in that district.
       (3) Extension of existing temporary bankruptcy 
     judgeships.--
       (A) In general.--The temporary bankruptcy judgeships 
     authorized for the northern district of Alabama and the 
     eastern district of Tennessee under paragraphs (1) and (9) of 
     section 3(a) 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 5 
     years or more after the date of enactment of this Act.
       (B) Applicability of other provisions.--All other 
     provisions of section 3 of the Bankruptcy Judgeship Act of 
     1992 (28 U.S.C. 152 note) remain applicable to the temporary 
     bankruptcy judgeships referred to in this paragraph.
       (d) Transfer of Bankruptcy Judgeship Shared by the Middle 
     District of Georgia and the Southern District of Georgia.--
     The bankruptcy judgeship shared by the southern district of 
     Georgia and the middle district of Georgia shall be converted 
     to a bankruptcy judgeship for the middle district of Georgia.
       (e) Conversion of Existing Temporary Bankruptcy 
     Judgeships.--
       (1) District of delaware.--The temporary bankruptcy 
     judgeship authorized for the district of Delaware under 
     section 3(a)(3) of the Bankruptcy Judgeship Act of 1992 (28 
     U.S.C. 152 note), shall be converted to a permanent 
     bankruptcy judgeship.
       (2) District of puerto rico.--The temporary bankruptcy 
     judgeship authorized for the district of Puerto Rico under 
     section 3(a)(7) of the Bankruptcy Judgeship Act of 1992 (28 
     U.S.C. 152 note), shall be converted to a permanent 
     bankruptcy judgeship.
       (f) Technical Amendments.--Section 152(a)(2) of title 28, 
     United States Code, is amended--
       (1) in the item relating to the eastern and western 
     districts of Arkansas, by striking ``3'' and inserting ``4'';
       (2) in the item relating to the district of Delaware, by 
     striking ``1'' and inserting ``6'';
       (3) in the item relating to the middle district of Florida, 
     by striking ``8'' and inserting ``10'';
       (4) in the item relating to the southern district of 
     Florida, by striking ``5'' and inserting ``7'';
       (5) in the item relating to the northern district of 
     Georgia, by striking ``8'' and inserting ``10'';
       (6) in the item relating to the middle district of Georgia, 
     by striking ``2'' and inserting ``3'';
       (7) in the item relating to the southern district of 
     Georgia, by striking ``2'' and inserting ``3'';
       (8) in the item relating to the middle and southern 
     districts of Georgia, by striking ``Middle and Southern . . . 
     . . . . . . . . . . . . 1'';
       (9) in the item relating to the district of Maryland, by 
     striking ``4'' and inserting ``7'';
       (10) in the item relating to the eastern district of 
     Michigan, by striking ``4'' and inserting ``6'';
       (11) in the item relating to the district of Nevada, by 
     striking ``3'' and inserting 5'';
       (12) in the item relating to the district of New Jersey, by 
     striking ``8'' and inserting ``9'';
       (13) in the item relating to the southern district of New 
     York, by striking ``9'' and inserting ``11'';
       (14) in the item relating to the eastern district of North 
     Carolina, by striking ``2'' and inserting ``3'';
       (15) in the item relating to the eastern district of 
     Pennsylvania, by striking ``5'' and inserting ``6'';
       (16) in the item relating to the district of Puerto Rico, 
     by striking ``2 and inserting ``3'';
       (17) in the item relating to the district of South 
     Carolina, by striking ``2'' and inserting ``3'';
       (18) in the item relating to the western district of 
     Tennessee, by striking ``4'' and inserting ``6'';
       (19) in the item relating to the district of Utah, by 
     striking ``3'' and inserting ``4''; and
       (20) in the item relating to the eastern district of 
     Virginia, by striking ``5'' and inserting ``6''.
                                 ______
                                 
  SA 116. Mr. BIDEN submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

        On page 452, strike line 15 and all that follows through 
     page 458, line 16, and insert the following:

     SEC. 1223. BANKRUPTCY JUDGESHIPS.

       (a) Short Title.--This section may be cited as the 
     ``Bankruptcy Judgeship Act of 2005''.
       (b) Authorization for Additional Bankruptcy Judgeships.--
     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:
       (1) One additional bankruptcy judgeship for the eastern and 
     western districts of Arkansas.
       (2) Four additional bankruptcy judgeships for the district 
     of Delaware.
       (3) Four additional bankruptcy judgeships for the middle 
     district of Florida.
       (4) One additional bankruptcy judgeship for the northern 
     district of Florida.
       (5) Two additional bankruptcy judgeships for the southern 
     district of Florida.
       (6) Two additional bankruptcy judgeships for the northern 
     district of Georgia.
       (7) Two additional bankruptcy judgeships for the southern 
     district of Georgia.
       (8) One additional bankruptcy judgeship for the northern 
     district of Indiana.
       (9) One additional bankruptcy judgeship for the eastern 
     district of Kentucky.
       (10) Four additional bankruptcy judgeships for the district 
     of Maryland.
       (11) Four additional bankruptcy judgeships for the eastern 
     district of Michigan.
       (12) One additional bankruptcy judgeship for the northern 
     district of Mississippi.
       (13) One additional bankruptcy judgeship for the southern 
     district of Mississippi.
       (14) Two additional bankruptcy judgeships for the district 
     of Nevada.
       (15) One additional bankruptcy judgeship for the district 
     of New Jersey.
       (16) One additional bankruptcy judgeship for the northern 
     district of New York.
       (17) Two additional bankruptcy judgeships for the southern 
     district of New York.
       (18) One additional bankruptcy judgeship for the eastern 
     district of North Carolina.
       (19) One additional bankruptcy judgeship for the western 
     district of North Carolina.
       (20) One additional bankruptcy judgeship for the southern 
     district of Ohio.
       (21) One additional bankruptcy judgeship for the eastern 
     district of Pennsylvania.
       (22) One additional bankruptcy judgeship for the middle 
     district of Pennsylvania.
       (23) One additional bankruptcy judgeship for the western 
     district of Pennsylvania.
       (24) One additional bankruptcy judgeship for the district 
     of Puerto Rico.
       (25) One additional bankruptcy judgeship for the district 
     of South Carolina.
       (26) Two additional bankruptcy judgeships for the western 
     district of Tennessee.
       (27) One additional bankruptcy judgeship for the eastern 
     district of Texas.
       (28) One additional bankruptcy judgeship for the district 
     of Utah.
       (29) One additional bankruptcy judgeship for the eastern 
     district of Virginia.
       (c) Extension of Existing Temporary Bankruptcy Judgeship.--
       (1) In general.--The temporary bankruptcy judgeship 
     authorized for the northern district of Alabama under section 
     3(a)(1) of the Bankruptcy Judgeship Act of 1992 (28 U.S.C. 
     152 note) is extended until the first vacancy occurring in 
     the office of a bankruptcy judge in such district resulting 
     from the death, retirement, resignation, or removal of a 
     bankruptcy judge and occurring not less than 5 years after 
     the date of enactment of this Act.
       (2) Applicability of other provisions.--All other 
     provisions of section 3 of the Bankruptcy Judgeship Act of 
     1992 (28 U.S.C. 152 note) remain applicable to the temporary 
     bankruptcy judgeship referred to in paragraph (1).
       (d) Transfer of Bankruptcy Judgeship Shared by the Middle 
     District of Georgia and the Southern District of Georgia.--
     The bankruptcy judgeship shared by the southern district of 
     Georgia and the middle district of Georgia shall be converted 
     to a bankruptcy judgeship for the middle district of Georgia.
       (e) Conversion of existing temporary bankruptcy 
     judgeships.--
       (1) District of delaware.--The temporary bankruptcy 
     judgeship authorized for the district of Delaware under 
     section 3(a)(3) of the Bankruptcy Judgeship Act of 1992 (28 
     U.S.C. 152 note), shall be converted to a permanent 
     bankruptcy judgeship.
       (2) Southern district of illinois.--The temporary 
     bankruptcy judgeship authorized for the southern district of 
     Illinois under section 3(a)(4) of the Bankruptcy Judgeship 
     Act of 1992 (28 U.S.C. 152 note), shall be converted to a 
     permanent bankruptcy judgeship.
       (3) District of puerto rico.--The temporary bankruptcy 
     judgeship authorized for the district of Puerto Rico under 
     section 3(a)(7) of the Bankruptcy Judgeship Act of 1992 (28 
     U.S.C. 152 note), shall be converted to a permanent 
     bankruptcy judgeship.
       (f) Technical Amendments.--Section 152(a)(2) of title 28, 
     United States Code, is amended--
       (1) in the item relating to the eastern and western 
     districts of Arkansas, by striking ``3'' and inserting ``4'';
       (2) in the item relating to the district of Delaware, by 
     striking ``1'' and inserting ``6'';
       (3) in the item relating to the middle district of Florida, 
     by striking ``8'' and inserting ``12'';
       (4) in the item relating to the northern district of 
     Florida, by striking ``1'' and inserting ``2'';
       (5) in the item relating to the southern district of 
     Florida, by striking ``5'' and inserting ``7'';

[[Page S2187]]

       (6) in the item relating to the northern district of 
     Georgia, by striking ``8'' and inserting ``10'';
       (7) in the item relating to the middle district of Georgia, 
     by striking ``2'' and inserting ``3'';
       (8) in the item relating to the southern district of 
     Georgia, by striking ``2'' and inserting ``4'';
       (9) in the item relating to the middle and southern 
     districts of Georgia, by striking ``Middle and Southern . . . 
     . . . . . . . . . . . . 1'';
       (10) in the item relating to the southern district of 
     Illinois, by striking ``1'' and inserting ``2'';
       (11) in the item relating to the northern district of 
     Indiana, by striking ``3'' and inserting ``4'';
       (12) in the item relating to the eastern district of 
     Kentucky, by striking ``2'' and inserting ``3'';
       (13) in the item relating to the district of Maryland, by 
     striking ``4'' and inserting ``8'';
       (14) in the item relating to the eastern district of 
     Michigan, by striking ``4'' and inserting ``8'';
       (15) in the item relating to the northern district of 
     Mississippi, by striking ``1'' and inserting ``2'';
       (16) in the item relating to the southern district of 
     Mississippi, by striking ``2'' and inserting ``3'';
       (17) in the item relating to the district of Nevada, by 
     striking ``3'' and inserting 5'';
       (18) in the item relating to the district of New Jersey, by 
     striking ``8'' and inserting ``9'';
       (19) in the item relating to the northern district of New 
     York, by striking ``2'' and inserting ``3'';
       (20) in the item relating to the southern district of New 
     York, by striking ``9'' and inserting ``11'';
       (21) in the item relating to the eastern district of North 
     Carolina, by striking ``2'' and inserting ``3'';
       (22) in the item relating to the western district of North 
     Carolina, by striking ``2'' and inserting ``3'';
       (23) in the item relating to the southern district of Ohio, 
     by striking ``7'' and inserting ``8'';
       (24) in the item relating to the eastern district of 
     Pennsylvania, by striking ``5'' and inserting ``6'';
       (25) in the item relating to the middle district of 
     Pennsylvania, by striking ``2'' and inserting ``3'';
       (26) in the item relating to the western district of 
     Pennsylvania, by striking ``4'' and inserting ``5'';
       (27) in the item relating to the district of Puerto Rico, 
     by striking ``2 and inserting ``4'';
       (28) in the item relating to the district of South 
     Carolina, by striking ``2'' and inserting ``3'';
       (29) in the item relating to the western district of 
     Tennessee, by striking ``4'' and inserting ``6'';
       (30) in the item relating to the eastern district of Texas, 
     by striking ``2'' and inserting ``3'';
       (31) in the item relating to the district of Utah, by 
     striking ``3'' and inserting ``4''; and
       (32) in the item relating to the eastern district of 
     Virginia, by striking ``5'' and inserting ``6''.
                                 ______
                                 
  SA 117. Mr. BIDEN submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 454, strike line 15 and all that follows through 
     page 457, line 22, and insert the following:
       (2) Technical and conforming amendments.--Section 152(a)(2) 
     of title 28, United States Code, is amended--
       (A) in the item relating to the eastern district of 
     California, by striking ``6'' and inserting ``7'';
       (B) in the item relating to the central district of 
     California, by striking ``21'' and inserting ``24'';
       (C) in the item relating to the district of Delaware, by 
     striking ``1'' and inserting ``6'';
       (D) in the item relating to the southern district of 
     Florida, by striking ``5'' and inserting ``7'';
       (E) in the item relating to the southern district of 
     Georgia, by striking ``2'' and inserting ``3'';
       (F) in the item relating to the district of Maryland, by 
     striking ``4'' and inserting ``7'';
       (G) in the item relating to the eastern district of 
     Michigan, by striking ``4'' and inserting ``5'';
       (H) in the item relating to the southern district of 
     Mississippi, by striking ``2'' and inserting ``3'';
       (I) in the item relating to the district of New Jersey, by 
     striking ``8'' and inserting ``9'';
       (J) in the item relating to the eastern district of New 
     York, by striking ``6'' and inserting ``7'';
       (K) in the item relating to the northern district of New 
     York, by striking ``2'' and inserting ``3'';
       (L) in the item relating to the southern district of New 
     York, by striking ``9'' and inserting ``10'';
       (M) in the item relating to the eastern district of North 
     Carolina, by striking ``2'' and inserting ``3'';
       (N) in the item relating to the eastern district of 
     Pennsylvania, by striking ``5'' and inserting ``6'';
       (O) in the item relating to the middle district of 
     Pennsylvania, by striking ``2'' and inserting ``3'';
       (P) in the item relating to the district of Puerto Rico, by 
     striking ``2 and inserting ``4'';
       (Q) in the item relating to the western district of 
     Tennessee, by striking ``4'' and inserting ``5'';
       (R) in the item relating to the eastern district of 
     Virginia, by striking ``5'' and inserting ``6'';
       (S) in the item relating to the district of South Carolina, 
     by striking ``2'' and inserting ``3'';
       (T) in the item relating to the district of Nevada, by 
     striking ``3'' and inserting ``4'';
       (U) in the item relating to the northern district of 
     Alabama, by striking ``5'' and inserting ``6''; and
       (V) in the item relating to the eastern district of 
     Tennessee, by striking ``3'' and inserting ``4''.
       (c) Conversion of Existing Temporary Bankruptcy 
     Judgeships.--The temporary bankruptcy judgeships authorized 
     for the northern district of Alabama, the district of 
     Delaware, the district of Puerto Rico, and the eastern 
     district of Tennessee under paragraphs (1), (3), (7), and (9) 
     of section 3(a) of the Bankruptcy Judgeship Act of 1992 (28 
     U.S.C. 152 note), shall be converted to permanent bankruptcy 
     judgeships.
                                 ______
                                 
  SA 118. Mr. KYL (for himself, Mr. Feingold, and Mrs. Feinstein) 
submitted an amendment intended to be proposed by him to the bill S. 
256, to amend title 11 of the United States Code, and for other 
purposes; which was ordered to lie on the table; as follows:

       On page 231, line 13, strike ``45'' and insert ``60''.
                                 ______
                                 
  SA 119. Mr. KENNEDY submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       On page 45, strike lines 22 through 24, and insert the 
     following:
       (a) Reduction of Claim.--Section 502 of title 11, United 
     States Code, is amended--
       (1) in subsection (b)--
       (A) in paragraph (8), by striking ``or'' at the end;
       (B) in paragraph (9), by striking the period at the end and 
     inserting ``; or''; and
       (C) by adding at the end the following:
       ``(10) such claim is for a credit transaction involving a 
     consumer (as defined in section 103(h) of the Truth in 
     Lending Act (15 U.S.C. 1602(g))), and the interest included 
     as part of such claim exceeds the maximum amount allowed by 
     the laws of the State, Territory, or District in which the 
     debtor resides.''; and
       (2) by adding at the end the following:
                                 ______
                                 
  SA 120. Mr. LEVIN (for himself and Mr. Pryor) submitted an amendment 
intended to be proposed by him to the bill S. 256, to amend title 11 of 
the United States Code, and for other purposes; which was ordered to 
lie on the table; as follows:

       On page 495, strike line 8, and insert the following:

     or more consecutive months.

       ``(i) Calculation of Finance Charge During Grace Period.--A 
     creditor may not impose a finance charge with respect to any 
     amount paid on time.''
                                 ______
                                 
  SA 121. Mr. TALENT submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; as follows:

       On page 500, between lines 2 and 3, insert the following:
       (4) by adding at the end the following:
       ``(e)(1) In addition to any transfer that the trustee may 
     otherwise avoid, the trustee may avoid any transfer of an 
     interest of the debtor in property that was made on or within 
     10 years before the date of the filing of the petition, if--
       ``(A) such transfer was made to a self-settled trust or 
     similar device;
       ``(B) such transfer was by the debtor;
       ``(C) the debtor is a beneficiary of such trust or similar 
     device; and
       ``(D) the debtor made such transfer with actual intent to 
     hinder, delay, or defraud any entity to which the debtor was 
     or became, on or after the date that such transfer was made, 
     indebted.
       ``(2) For the purposes of this subsection, a transfer 
     includes a transfer made in anticipation of any money 
     judgment, settlement, civil penalty, equitable order, or 
     criminal fine incurred by, or which the debtor believed would 
     be incurred by--
       ``(A) any violation of the securities laws (as defined in 
     section 3(a)(47) of the Securities Exchange Act of 1934 (15 
     U.S.C. 78c(a)(47))), any State securities laws, or any 
     regulation or order issued under Federal securities laws or 
     State securities laws; or
       ``(B) fraud, deceit, or manipulation in a fiduciary 
     capacity or in connection with the

[[Page S2188]]

     purchase or sale of any security registered under section 12 
     or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 
     78l and 78o(d)) or under section 6 of the Securities Act of 
     1933 (15 U.S.C. 77f).''.
                                 ______
                                 
  SA 122. Mr. LAUTENBERG submitted an amendment intended to be proposed 
by him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       On page 65, after line 21, insert the following:

     SEC. 203A. AMENDMENT OF ATTORNEY PROVISIONS.

       (a) Bankruptcy schedules.--Section 707(b) of title 11, 
     United States Code, as amended by this Act, is further 
     amended by striking paragraph (4).
       (b) Reaffirmation.--Section 524(k) of title 11, United 
     States Code, as amended by this Act, is further amended by 
     striking paragraph (5).
                                 ______
                                 
  SA 123. Mr. LAUTENBERG submitted an amendment intended to be proposed 
by him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

       Beginning on page 15, strike line 18 and all that follows 
     through page 17, line 6, and insert the following:
       ``(5) Subject to paragraph (6), the court, on its own 
     initiative or on the motion of a party in interest, in 
     accordance with the procedures described in rule 9011 of the 
     Federal Rules of Bankruptcy Procedure, may award a debtor all 
     reasonable costs (including reasonable attorneys' fees) in 
     contesting a motion filed by a party in interest (other than 
     a trustee or United States trustee (or bankruptcy 
     administrator, if any)) under this subsection if--
       ``(A) the court does not grant the motion; and
       ``(B) the court finds that--
       ``(i) the position of the party that filed the motion 
     violated rule 9011 of the Federal Rules of Bankruptcy 
     Procedure; or
       ``(ii) the attorney (if any) who filed the motion did not 
     comply with the requirements of clauses (i) and (ii) of 
     paragraph (4)(C), and the motion was made solely for the 
     purpose of coercing a debtor into waiving a right guaranteed 
     to the debtor under this title.
                                 ______
                                 
  SA 124. Mr. LAUTENBERG submitted an amendment intended to be proposed 
by him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

        On page 2, lines 4 and 5, strike ``This Act may be cited 
     as the Bankruptcy Abuse and Consumer Protection Act of 
     2005.'' and insert ``This Act may be cited as the Credit Card 
     Company Profitability Act of 2005.''.
                                 ______
                                 
  SA 125. Mr. LAUTENBERG (for himself and Mr. Dayton) submitted an 
amendment intended to be proposed by him to the bill S. 256, to amend 
title 11 of the United States Code, and for other purposes; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. LIMITATIONS ON PENALTIES DUE TO LATE PAYMENTS.

       Section 127 of the Truth in Lending Act (15 U.S.C. 1637) is 
     amended by adding at the end the following:
       ``(h) Limitations on Penalties Due to Late Payments.--
       ``(1) Limitations on interest rate increases.--
       ``(A) Advance notice required.--In the case of a credit 
     card account under an open end credit plan, the creditor 
     shall provide written or electronic notice to the obligor of 
     its intention to increase the annual rate of interest 
     applicable to the account due to a delinquency, and the 
     effective date of such increase, not later than 15 days 
     before that effective date.
       ``(B) Opportunity to remedy delinquency.--Except as 
     provided in subparagraph (C), no increase in an annual rate 
     of interest applicable to a credit card account under an open 
     end credit plan due to a delinquency may be imposed if the 
     obligor makes the payments required to bring the account up 
     to date or to bring the outstanding balance below the amount 
     of credit authorized to be extended with respect to the 
     account, as applicable, during the 15-day period prescribed 
     by subparagraph (A).
       ``(C) Exception for repeated delinquency.--Subparagraph (B) 
     shall not apply to an increase in an annual rate of interest 
     in any case in which the obligor has been delinquent with 
     respect to the subject account on 3 separate occasions during 
     the 12-month period immediately preceding the date of the 
     increase.
       ``(3) Relation to state laws.--No provision of this 
     subsection shall be construed to annul, alter, or affect or 
     exempt any person subject to the provisions of this 
     subsection from complying with, the laws of any State with 
     respect to delinquency fees and penalties, except to the 
     extent that those laws are inconsistent with any provision of 
     this subsection and then only to the extent of the 
     inconsistency. The Board may determine whether such 
     inconsistencies exist. The Board may not determine that any 
     State law is inconsistent with any provision of this chapter 
     if the Board determines that such law gives greater 
     protection to the consumer.
       ``(4) Definitions.--For purposes of this subsection an 
     obligor is `delinquent' or a `delinquency' exists, if the 
     obliger has, with respect to the subject credit card 
     account--
       ``(A) failed to make payment on or before the due date for 
     such payment; or
       ``(B) exceeded the amount of credit authorized to be 
     extended with respect to the account of the obligor.''.
                                 ______
                                 
  SA 126. Mr. DODD submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

        At the appropriate place, insert the following:

     SEC. ___. LIMITS ON FINANCE AND INTEREST CHARGES FOR ON-TIME 
                   PAYMENTS.

       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 Penalties for On-Time Payments.--
       ``(1) Prohibition on finance charges for on-time 
     payments.--In the case of any credit card account under an 
     open end credit plan, where no other balance is owing on the 
     account, no finance or interest charge may be imposed with 
     regard to any amount of a new extension of credit that was 
     paid on or before the date on which it was due.
       ``(2) Prohibition on cancellation or additional fees for 
     on-time payments or payment in full.--In the case of any 
     credit card account under an open end consumer credit plan, 
     no fee or other penalty may be imposed on the consumer in 
     connection with the payment in full of an existing account 
     balance, or payment of more than the minimum required payment 
     of an existing account balance.''.
                                 ______
                                 
  SA 127. Mr. SCHUMER submitted an amendment intended to be proposed by 
him to the bill S. 256, to amend title 11 of the United States Code, 
and for other purposes; which was ordered to lie on the table; as 
follows:

        On page 205, between lines 16 and 17, insert the 
     following:

     SEC. 332. ASSET PROTECTION TRUSTS.

       Section 548 of title 11, United States Code, as amended by 
     this Act, is further amended by adding at the end the 
     following:
       ``(e) The trustee may avoid a transfer of an interest of 
     the debtor in property made by an individual debtor within 10 
     years before the date of the filing of the petition to an 
     asset protection trust if the amount of the transfer or the 
     aggregate amount of all transfers to the trust within such 
     10-year period exceeds $1,000,000, to the extent that debtor 
     has a beneficial interest in the trust and the debtor's 
     beneficial interest in the trust does not become property of 
     the estate by reason of section 541(c)(2). For purposes of 
     this subsection, a fund or account of the kind specified in 
     section 522(d)(12) is not an asset protection trust.''.
       For purposes of this amendment, an asset protction trust is 
     defined as:
       A trust settled by the debtor for the benefit of the debtor 
     directly or indirectly, where the beneficial interests of the 
     trust are otherwise protected by state law from begin 
     alienated, either voluntarily or involuntarily, before they 
     are distributed to the beneficiaries.
                                 ______
                                 
  SA 128. Mr. SANTORUM proposed an amendment to the bill S. 256, to 
amend title 11 of the United States Code, and for other purposes; as 
follows:

       At the appropriate place, insert the following:

            __--ASSISTANCE FOR WORKERS AND SMALL BUSINESSES

     SEC. __00. SHORT TITLE.

       This title may be cited as the ``Worker and Small Business 
     Assistance Act''.

                  Subtitle A--Minimum Wage Adjustment

     SEC. __01. MINIMUM WAGE.

       (a) In General.--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) $5.70 an hour, beginning on the date that is 6 months 
     after the date of enactment of the Worker and Small Business 
     Assistance Act; and
       ``(B) $6.25 an hour, beginning on the date that is 1 year 
     after the date on which the wage takes effect under 
     subparagraph (A);''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date that is 6 months after the date 
     of enactment of this Act.

                   Subtitle B--Workplace Flexibility

     SEC. __11. SHORT TITLE.

       This subtitle may be cited as the ``Workplace Flexibility 
     Act''.

     SEC. __12. BIWEEKLY WORK PROGRAMS.

       (a) In General.--The Fair Labor Standards Act of 1938 is 
     amended by inserting after section 13 (29 U.S.C. 213) the 
     following:

[[Page S2189]]

     ``SEC. 13A. BIWEEKLY WORK PROGRAMS.

       ``(a) Voluntary Participation.--
       ``(1) In general.--Except as provided in paragraph (2), no 
     employee may be required to participate in a program 
     described in this section. Participation in a program 
     described in this section may not be a condition of 
     employment.
       ``(2) Collective bargaining agreement.--In a case in which 
     a valid collective bargaining agreement exists between an 
     employer and the labor organization that has been certified 
     or recognized as the representative of the employees of the 
     employer under applicable law, an employee may only be 
     required to participate in such a program in accordance with 
     the agreement.
       ``(b) Biweekly Work Programs.--
       ``(1) In general.--Notwithstanding section 7, an employer 
     may establish biweekly work programs that allow the use of a 
     biweekly work schedule--
       ``(A) that consists of a basic work requirement of not more 
     than 80 hours, over a 2-week period; and
       ``(B) in which more than 40 hours of the work requirement 
     may occur in a week of the period, except that no more than 
     10 hours may be shifted between the 2 weeks involved.
       ``(2) Conditions.--An employer may carry out a biweekly 
     work program described in paragraph (1) for employees only 
     pursuant to the following:
       ``(A) Agreement.--The program may be carried out only in 
     accordance with--
       ``(i) applicable provisions of a collective bargaining 
     agreement between the employer and the labor organization 
     that has been certified or recognized as the representative 
     of the employees under applicable law; or
       ``(ii) in the case of an employee who is not represented by 
     a labor organization described in clause (i), a written 
     agreement arrived at between the employer and employee before 
     the performance of the work involved if the agreement was 
     entered into knowingly and voluntarily by such employee and 
     was not a condition of employment.
       ``(B) Statement.--The program shall apply to an employee 
     described in subparagraph (A)(ii) if such employee has 
     affirmed, in a written statement that is made, kept, and 
     preserved in accordance with section 11(c), that the employee 
     has chosen to participate in the program.
       ``(C) Minimum service.--No employee may participate, or 
     agree to participate, in the program unless the employee has 
     been employed for at least 12 months by the employer, and for 
     at least 1,250 hours of service with the employer during the 
     previous 12-month period.
       ``(3) Compensation for hours in schedule.--Notwithstanding 
     section 7, in the case of an employee participating in such a 
     biweekly work program, the employee shall be compensated for 
     each hour in such a biweekly work schedule at a rate not less 
     than the regular rate at which the employee is employed.
       ``(4) Computation of overtime.--All hours worked by the 
     employee in excess of such a biweekly work schedule or in 
     excess of 80 hours in the 2-week period, that are requested 
     in advance by the employer, shall be overtime hours.
       ``(5) Overtime compensation provision.--The employee shall 
     be compensated for each such overtime hour at a rate not less 
     than one and one-half times the regular rate at which the 
     employee is employed, in accordance with section 7(a)(1), or 
     receive compensatory time off in accordance with section 7(r) 
     for each such overtime hour.
       ``(6) Discontinuance of program or withdrawal.--
       ``(A) Discontinuance of program.--An employer that has 
     established a biweekly work program under paragraph (1) may 
     discontinue the program for employees described in paragraph 
     (2)(A)(ii) after providing 30 days' written notice to the 
     employees who are subject to an agreement described in 
     paragraph (2)(A)(ii).
       ``(B) Withdrawal.--An employee may withdraw an agreement 
     described in paragraph (2)(A)(ii) at the end of any 2-week 
     period described in paragraph (1)(A), by submitting a written 
     notice of withdrawal to the employer of the employee.
       ``(c) Prohibition of Coercion.--
       ``(1) In general.--An employer shall not directly or 
     indirectly intimidate, threaten, or coerce, or attempt to 
     intimidate, threaten, or coerce, any employee for the purpose 
     of interfering with the rights of the employee under this 
     section to elect or not to elect to work a biweekly work 
     schedule.
       ``(2) Definition.--In paragraph (1), the term `intimidate, 
     threaten, or coerce' includes promising to confer or 
     conferring any benefit (such as appointment, promotion, or 
     compensation) or effecting or threatening to effect any 
     reprisal (such as deprivation of appointment, promotion, or 
     compensation).
       ``(d) Definitions.--In this section:
       ``(1) Basic work requirement.--The term `basic work 
     requirement' means the number of hours, excluding overtime 
     hours, that an employee is required to work or is required to 
     account for by leave or otherwise.
       ``(2) Collective bargaining.--The term `collective 
     bargaining' means the performance of the mutual obligation of 
     the representative of an employer and the labor organization 
     that has been certified or recognized as the representative 
     of the employees of the employer under applicable law to meet 
     at reasonable times and to consult and bargain in a good-
     faith effort to reach agreement with respect to the 
     conditions of employment affecting such employees and to 
     execute, if requested by either party, a written document 
     incorporating any collective bargaining agreement reached, 
     but the obligation referred to in this paragraph shall not 
     compel either party to agree to a proposal or to make a 
     concession.
       ``(3) Collective bargaining agreement.--The term 
     `collective bargaining agreement' means an agreement entered 
     into as a result of collective bargaining.
       ``(4) Election.--The term `at the election of', used with 
     respect to an employee, means at the initiative of, and at 
     the request of, the employee.
       ``(5) Employee.--The term `employee' means an individual--
       ``(A) who is an employee (as defined in section 3);
       ``(B) who is not an employee of a public agency; and
       ``(C) to whom section 7(a) applies.
       ``(6) Employer.--The term `employer' does not include a 
     public agency.
       ``(7) Overtime hours.--The term `overtime hours' when used 
     with respect to biweekly work programs under subsection (b), 
     means all hours worked in excess of the biweekly work 
     schedule involved or in excess of 80 hours in the 2-week 
     period involved, that are requested in advance by an 
     employer.
       ``(8) Regular rate.--The term `regular rate' has the 
     meaning given the term in section 7(e).''.
       (b) Remedies.--
       (1) Prohibitions.--Section 15(a)(3) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 215(a)(3)) is amended--
       (A) by inserting ``(A)'' after ``(3)'';
       (B) by adding ``or'' after the semicolon; and
       (C) by adding at the end the following:
       ``(B) to violate any of the provisions of section 13A;''.
       (2) Remedies and sanctions.--Section 16 of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 216) is amended--
       (A) in subsection (c)--
       (i) in the first sentence--

       (I) by inserting after ``7 of this Act'' the following: ``, 
     or of the appropriate legal or monetary equitable relief 
     owing to any employee or employees under section 13A''; and
       (II) by striking ``wages or unpaid overtime compensation 
     and'' and inserting ``wages, unpaid overtime compensation, or 
     legal or monetary equitable relief, as appropriate, and'';

       (ii) in the second sentence, by striking ``wages or 
     overtime compensation and'' and inserting ``wages, unpaid 
     overtime compensation, or legal or monetary equitable relief, 
     as appropriate, and''; and
       (iii) in the third sentence--

       (I) by inserting after ``first sentence of such 
     subsection'' the following: ``, or the second sentence of 
     such subsection in the event of a violation of section 
     13A,''; and
       (II) by striking ``wages or unpaid overtime compensation 
     under sections 6 and 7 or'' and inserting ``wages, unpaid 
     overtime compensation, or legal or monetary equitable relief, 
     as appropriate, or''; and

       (B) in subsection (e)--
       (i) in the second sentence, by striking ``section 6 or 7'' 
     and inserting ``section 6, 7, or 13A''; and
       (ii) in the fourth sentence, in paragraph (3), by striking 
     ``15(a)(4) or'' and inserting ``15(a)(4), a violation of 
     section 15(a)(3)(B), or''.
       (c) Notice to Employees.--Not later than 30 days after the 
     date of enactment of this Act, the Secretary of Labor shall 
     revise the materials the Secretary provides, under 
     regulations contained in section 516.4 of title 29, Code of 
     Federal Regulations, to employers for purposes of a notice 
     explaining the Fair Labor Standards Act of 1938 (29 U.S.C. 
     201 et seq.) to employees so that the notice reflects the 
     amendments made to the Act by this section.

     SEC. __13. CONGRESSIONAL COVERAGE.

       Section 203 of the Congressional Accountability Act of 1995 
     (2 U.S.C. 1313) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``and section 12(c)'' and 
     inserting ``section 12(c), and section 13A''; and
       (B) by striking paragraph (3);
       (2) in subsection (b)--
       (A) by striking ``The remedy'' and inserting the following:
       ``(1) In general.--Except as provided in paragraphs (2) and 
     (3), the remedy''; and
       (B) by adding at the end the following:
       ``(2) Biweekly work programs and flexible credit hours 
     programs.--The remedy for a violation of subsection (a) 
     relating to the requirements of section 13A of the Fair Labor 
     Standards Act of 1938 shall be such remedy as would be 
     appropriate if awarded under sections 16 and 17 of such Act 
     (29 U.S.C. 216, 217) for such a violation.''; and
       (3) in subsection (c), by striking paragraph (4).

     SEC. __14. TERMINATION.

       The authority provided by this subtitle and the amendments 
     made by this subtitle terminates 5 years after the date of 
     enactment of this Act.

     Subtitle C--Small Business Fair Labor Standards Act Exemption

     SEC. __21. ENHANCED SMALL BUSINESS EXEMPTION.

       (a) In General.--Section 3(s)(1)(A)(ii) of the Fair Labor 
     Standards Act of 1938 (29 U.S.C. 203(s)(1)(A)(ii)) is amended 
     by striking ``$500,000'' and inserting ``$1,000,000''.
       (b) Effect of Amendment.--The amendment made by subsection 
     (a) shall not apply

[[Page S2190]]

     in any State that does not have in effect, or that does not 
     subsequently enact after the date of enactment of the Worker 
     and Small Business Assistance Act, legislation applying 
     minimum wage and hours of work protections to workers covered 
     by the Fair Labor Standards Act of 1938 as of the day before 
     the date of enactment of the Worker and Small Business 
     Assistance Act.

     SEC. __22. SCOPE OF EMPLOYMENT.

       Section 6(a) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 206(a)), in the matter preceding paragraph (1), and 
     section 7(a)(1) of such Act (29 U.S.C. 207(a)(1)), are 
     amended by striking ``who in any workweek is engaged in 
     commerce or in the production of goods for commerce, or is 
     employed in an enterprise engaged in commerce or in the 
     production of goods for commerce,'' and inserting ``who in 
     any workweek is engaged in industrial homework subject to 
     section 11(d) and engaged in commerce or in the production of 
     goods for commerce, or who in any workweek is employed in an 
     enterprise engaged in commerce or in the production of goods 
     for commerce,''.

             Subtitle D--Small Business Paperwork Reduction

     SEC. __31. SMALL BUSINESS PAPERWORK REDUCTION.

       (a) In General.--Section 3506 of title 44, United States 
     Code (commonly referred to as the ``Paperwork Reduction 
     Act''), is amended by adding at the end the following:
       ``(j)(1) In the case of a first-time violation by a small 
     business concern of a requirement regarding the collection of 
     information by an agency, the head of such agency shall 
     provide that no civil fine shall be imposed on the small 
     business concern unless, based on the particular facts and 
     circumstances regarding the violation--
       ``(A) the head of the agency determines that the violation 
     has the potential to cause serious harm to the public 
     interest;
       ``(B) the head of the agency determines that failure to 
     impose a civil fine would impede or interfere with the 
     detection of criminal activity;
       ``(C) the violation is a violation of an internal revenue 
     law or a law concerning the assessment or collection of any 
     tax, debt, revenue, or receipt;
       ``(D) the violation is not corrected on or before the date 
     that is 6 months after the date of receipt by the small 
     business concern of notification of the violation in writing 
     from the agency; or
       ``(E) except as provided in paragraph (2), the head of the 
     agency determines that the violation presents a danger to the 
     public health or safety.
       ``(2)(A) In any case in which the head of an agency 
     determines under paragraph (1)(E) that a violation presents a 
     danger to the public health or safety, the head of the agency 
     may, notwithstanding paragraph (1)(E), determine that a civil 
     fine should not be imposed on the small business concern if 
     the violation is corrected within 24 hours of receipt of 
     notice in writing by the small business concern of the 
     violation.
       ``(B) In determining whether to provide a small business 
     concern with 24 hours to correct a violation under 
     subparagraph (A), the head of the agency shall take into 
     account all of the facts and circumstances regarding the 
     violation, including--
       ``(i) the nature and seriousness of the violation, 
     including whether the violation is technical or inadvertent 
     or involves willful or criminal conduct;
       ``(ii) whether the small business concern has made a good 
     faith effort to comply with applicable laws, and to remedy 
     the violation within the shortest practicable period of time; 
     and
       ``(iii) whether the small business concern has obtained a 
     significant economic benefit from the violation.
       ``(C) In any case in which the head of the agency imposes a 
     civil fine on a small business concern for a violation with 
     respect to which this paragraph applies and does not provide 
     the small business concern with 24 hours to correct the 
     violation, the head of the agency shall notify Congress 
     regarding such determination not later than 60 days after the 
     date that the civil fine is imposed by the agency.
       ``(3) With respect to any agency, this subsection shall not 
     apply to any violation by a small business concern of a 
     requirement regarding collection of information by such 
     agency if such small business concern previously violated any 
     requirement regarding collection of information by such 
     agency.
       ``(4) In determining if a violation is a first-time 
     violation for purposes of this subsection, the head of an 
     agency shall not take into account any violation of a 
     requirement regarding collection of information by another 
     agency.
       ``(5) Notwithstanding any other provision of law, no State 
     may impose a civil penalty on a small business concern, in 
     the case of a first-time violation by the small-business 
     concern of a requirement regarding collection of information 
     under Federal law, in a manner inconsistent with the 
     provisions of this subsection.
       ``(6) For purposes of this subsection, the term `small 
     business concern' means a business concern that meets the 
     requirements of section 3(a) of the Small Business Act (15 
     U.S.C. 632(a)) and the regulations promulgated pursuant to 
     such section.''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to any violation occurring on or after October 1, 
     2004.

              Subtitle E--Small Business Regulatory Relief

     SEC. __41. ENHANCED COMPLIANCE ASSISTANCE FOR SMALL 
                   BUSINESSES.

       (a) In General.--Section 212 of the Small Business 
     Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601 
     note) is amended by striking subsection (a) and inserting the 
     following:
       ``(a) Compliance Guide.--
       ``(1) In general.--For each rule for which an agency head 
     does not make a certification under section 605(b) of title 
     5, United States Code, the agency shall publish 1 or more 
     guides to assist small entities in complying with the rule, 
     and shall entitle such publications `small entity compliance 
     guides'.
       ``(2) Publication of guides.--The publication of each guide 
     under this subsection shall include--
       ``(A) the posting of the guide in an easily identified 
     location on the website of the agency; and
       ``(B) distribution of the guide to known industry contacts, 
     such as small entities, associations, or industry leaders 
     affected by the rule.
       ``(3) Publication date.--An agency shall publish each guide 
     (including the posting and distribution of the guide as 
     described under paragraph (2))--
       ``(A) on the same date as the date of publication of the 
     final rule (or as soon as possible after that date); and
       ``(B) not later than the date on which the requirements of 
     that rule become effective.
       ``(4) Compliance actions.--
       ``(A) In general.--Each guide shall explain the actions a 
     small entity is required to take to comply with a rule.
       ``(B) Explanation.--The explanation under subparagraph 
     (A)--
       ``(i) shall include a description of actions needed to meet 
     requirements to enable a small entity to know when such 
     requirements are met; and
       ``(ii) if determined appropriate by the agency, may include 
     a description of possible procedures, such as conducting 
     tests, that assist a small entity in meeting such 
     requirements.
       ``(C) Procedures.--Procedures described under subparagraph 
     (B)(ii)--
       ``(i) shall be suggestions to assist small entities; and
       ``(ii) shall not be additional requirements relating to the 
     rule.
       ``(5) Agency preparation of guides.--The agency shall, in 
     its sole discretion, taking into account the subject matter 
     of the rule and the language of relevant statutes, ensure 
     that the guide is written using sufficiently plain language 
     likely to be understood by affected small entities. Agencies 
     may prepare separate guides covering groups or classes of 
     similarly affected small entities, and may cooperate with 
     associations of small entities to develop and distribute such 
     guides. An agency may prepare guides and apply this section 
     with respect to a rule or a group of related rules.''.
       (b) Technical and Conforming Amendment.--Section 211(3) of 
     the Small Business Regulatory Enforcement Fairness Act of 
     1996 (5 U.S.C. 601 note) is amended by inserting ``and 
     entitled'' after ``designated''.

                  Subtitle F--Minimum Wage Tip Credit

     SEC. __51. TIPPED WAGE FAIRNESS.

       Section 3(m) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 203(m)) is amended--
       (1) in paragraph (2), by inserting before the period the 
     following: ``: Provided, That the tips shall not be included 
     as part of the wage paid to an employee to the extent they 
     are excluded therefrom under the terms of a bona fide 
     collective bargaining agreement applicable to the particular 
     employee''; and
       (2) adding at the end the following: ``Notwithstanding any 
     other provision of this Act, any State or political 
     subdivision of a State which, on and after the date of 
     enactment of the Worker and Small Business Assistance Act, 
     prohibits any portion of a tipped employee's tips from being 
     considered as wages in determining if such tipped employee 
     has been paid the applicable minimum wage rate, may not 
     establish or enforce any such law, ordinance, regulation, or 
     order with respect to tipped employees unless such law, 
     ordinance, regulation, or order permits a tip credit in an 
     amount not less than an amount equal to--
       ``(A) the cash wage paid such employee which is required 
     under such law, ordinance, regulation, or order on the date 
     of enactment of such Act; and
       ``(B) an additional amount on account of tips received by 
     such employee which amount is equal to the difference between 
     such cash wage and the minimum wage rate in effect under such 
     law, ordinance, regulation, or order or the minimum wage rate 
     in effect under section 6, whichever is higher.''.

                 Subtitle G--Small Business Tax Relief

     SEC. __60. AMENDMENT OF 1986 CODE.

       Except as otherwise expressly provided, whenever in this 
     subtitle 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.

 PART I--PROVISIONS RELATING TO ECONOMIC STIMULUS FOR SMALL BUSINESSES

     SEC. __61. CLARIFICATION OF CASH ACCOUNTING RULES FOR SMALL 
                   BUSINESS.

       (a) Cash Accounting Permitted.--Section 446 (relating to 
     general rule for methods of accounting) is amended by adding 
     at the end the following new subsection:

[[Page S2191]]

       ``(g) Certain Small Business Taxpayers Permitted to Use 
     Cash Accounting Method Without Limitation.--
       ``(1) In general.--An eligible taxpayer shall not be 
     required to use an accrual method of accounting for any 
     taxable year.
       ``(2) Eligible taxpayer.--For purposes of this subsection--
       ``(A) In general.--A taxpayer is an eligible taxpayer with 
     respect to any taxable year if--
       ``(i) for all prior taxable years beginning after December 
     31, 2004, the taxpayer (or any predecessor) met the gross 
     receipts test of subparagraph (B), and
       ``(ii) the taxpayer is not subject to section 447 
     (determined without regard to subsection (c)(2) thereof) or 
     448 (determined without regard to subsection (b)(3) thereof).
       ``(B) Gross receipts test.--A taxpayer meets the gross 
     receipts test of this subparagraph for any prior taxable year 
     if the average annual gross receipts of the taxpayer for the 
     3-taxable-year period ending with such prior taxable year 
     does not exceed $10,000,000. The rules of paragraphs (2) and 
     (3) of section 448(c) shall apply for purposes of the 
     preceding sentence.''.
       (b) Clarification of Inventory Rules for Small Business.--
     Section 471 (relating to general rule for inventories) is 
     amended by redesignating subsection (c) as subsection (d) and 
     by inserting after subsection (b) the following new 
     subsection:
       ``(c) Small Business Taxpayers Not Required to Use 
     Inventories.--
       ``(1) In general.--An eligible taxpayer shall not be 
     required to use inventories under this section for a taxable 
     year.
       ``(2) Treatment of taxpayers not using inventories.--If an 
     eligible taxpayer does not use inventories with respect to 
     any property for any taxable year beginning after December 
     31, 2004, such property shall be treated as a material or 
     supply which is not incidental.
       ``(3) Eligible taxpayer.--For purposes of this subsection, 
     the term `eligible taxpayer' has the meaning given such term 
     by section 446(g)(2).''.
       (c) Effective Date and Special Rules.--
       (1) In general.--The amendments made by this section shall 
     apply to taxable years beginning after December 31, 2004.
       (2) Change in method of accounting.--In the case of any 
     taxpayer changing the taxpayer's method of accounting for any 
     taxable year under the amendments made by this section--
       (A) such change shall be treated as initiated by the 
     taxpayer;
       (B) such change shall be treated as made with the consent 
     of the Secretary of the Treasury; and
       (C) the net amount of the adjustments required to be taken 
     into account by the taxpayer under section 481 of the 
     Internal Revenue Code of 1986 shall be taken into account 
     over a period (not greater than 4 taxable years) beginning 
     with such taxable year.

     SEC. __62. MODIFICATION OF TREATMENT OF QUALIFIED RESTAURANT 
                   PROPERTY AS 15-YEAR PROPERTY FOR PURPOSES OF 
                   DEPRECIATION DEDUCTION.

       (a) Extension of Treatment.--Clause (v) of section 
     168(e)(3)(E) (defining 15-year property) is amended by 
     striking ``2006'' and inserting ``2009''.
       (b) Treatment to Include New Construction.--Paragraph (7) 
     of section 168(e) (relating to classification of property) is 
     amended to read as follows:
       ``(7) Qualified restaurant property.--The term `qualified 
     restaurant property' means any section 1250 property which is 
     a building or an improvement to a building if more than 50 
     percent of the building's square footage is devoted to 
     preparation of, and seating for on-premises consumption of, 
     prepared meals.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to any property placed in service after the date 
     of the enactment of this Act.

     SEC. __63. EXTENSION OF INCREASED EXPENSING FOR SMALL 
                   BUSINESSES.

       (a) In General.--Section 179 (relating to election to 
     expense certain depreciable business assets) is amended by 
     striking ``2008'' each place it appears and inserting 
     ``2009''.
       (b) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2007.

                           PART II--REVENUES

     SEC. __71. FRIVOLOUS TAX SUBMISSIONS.

       (a) Civil Penalties.--Section 6702 is amended to read as 
     follows:

     ``SEC. 6702. FRIVOLOUS TAX SUBMISSIONS.

       ``(a) Civil Penalty for Frivolous Tax Returns.--A person 
     shall pay a penalty of $5,000 if--
       ``(1) such person files what purports to be a return of a 
     tax imposed by this title but which--
       ``(A) does not contain information on which the substantial 
     correctness of the self-assessment may be judged, or
       ``(B) contains information that on its face indicates that 
     the self-assessment is substantially incorrect; and
       ``(2) the conduct referred to in paragraph (1)--
       ``(A) is based on a position which the Secretary has 
     identified as frivolous under subsection (c), or
       ``(B) reflects a desire to delay or impede the 
     administration of Federal tax laws.
       ``(b) Civil Penalty for Specified Frivolous Submissions.--
       ``(1) Imposition of penalty.--Except as provided in 
     paragraph (3), any person who submits a specified frivolous 
     submission shall pay a penalty of $5,000.
       ``(2) Specified frivolous submission.--For purposes of this 
     section--
       ``(A) Specified frivolous submission.--The term `specified 
     frivolous submission' means a specified submission if any 
     portion of such submission--
       ``(i) is based on a position which the Secretary has 
     identified as frivolous under subsection (c), or
       ``(ii) reflects a desire to delay or impede the 
     administration of Federal tax laws.
       ``(B) Specified submission.--The term `specified 
     submission' means--
       ``(i) a request for a hearing under--

       ``(I) section 6320 (relating to notice and opportunity for 
     hearing upon filing of notice of lien), or
       ``(II) section 6330 (relating to notice and opportunity for 
     hearing before levy), and

       ``(ii) an application under--

       ``(I) section 6159 (relating to agreements for payment of 
     tax liability in installments),
       ``(II) section 7122 (relating to compromises), or
       ``(III) section 7811 (relating to taxpayer assistance 
     orders).

       ``(3) Opportunity to withdraw submission.--If the Secretary 
     provides a person with notice that a submission is a 
     specified frivolous submission and such person withdraws such 
     submission within 30 days after such notice, the penalty 
     imposed under paragraph (1) shall not apply with respect to 
     such submission.
       ``(c) Listing of Frivolous Positions.--The Secretary shall 
     prescribe (and periodically revise) a list of positions which 
     the Secretary has identified as being frivolous for purposes 
     of this subsection. The Secretary shall not include in such 
     list any position that the Secretary determines meets the 
     requirement of section 6662(d)(2)(B)(ii)(II).
       ``(d) Reduction of Penalty.--The Secretary may reduce the 
     amount of any penalty imposed under this section if the 
     Secretary determines that such reduction would promote 
     compliance with and administration of the Federal tax laws.
       ``(e) Penalties in Addition to Other Penalties.--The 
     penalties imposed by this section shall be in addition to any 
     other penalty provided by law.''.
       (b) Treatment of Frivolous Requests for Hearings Before 
     Levy.--
       (1) Frivolous requests disregarded.--Section 6330 (relating 
     to notice and opportunity for hearing before levy) is amended 
     by adding at the end the following new subsection:
       ``(g) Frivolous Requests for Hearing, etc.--Notwithstanding 
     any other provision of this section, if the Secretary 
     determines that any portion of a request for a hearing under 
     this section or section 6320 meets the requirement of clause 
     (i) or (ii) of section 6702(b)(2)(A), then the Secretary may 
     treat such portion as if it were never submitted and such 
     portion shall not be subject to any further administrative or 
     judicial review.''.
       (2) Preclusion from raising frivolous issues at hearing.--
     Section 6330(c)(4) is amended--
       (A) by striking ``(A)'' and inserting ``(A)(i)'';
       (B) by striking ``(B)'' and inserting ``(ii)'';
       (C) by striking the period at the end of the first sentence 
     and inserting ``; or''; and
       (D) by inserting after subparagraph (A)(ii) (as so 
     redesignated) the following:
       ``(B) the issue meets the requirement of clause (i) or (ii) 
     of section 6702(b)(2)(A).''.
       (3) Statement of grounds.--Section 6330(b)(1) is amended by 
     striking ``under subsection (a)(3)(B)'' and inserting ``in 
     writing under subsection (a)(3)(B) and states the grounds for 
     the requested hearing''.
       (c) Treatment of Frivolous Requests for Hearings Upon 
     Filing of Notice of Lien.--Section 6320 is amended--
       (1) in subsection (b)(1), by striking ``under subsection 
     (a)(3)(B)'' and inserting ``in writing under subsection 
     (a)(3)(B) and states the grounds for the requested hearing'', 
     and
       (2) in subsection (c), by striking ``and (e)'' and 
     inserting ``(e), and (g)''.
       (d) Treatment of Frivolous Applications for Offers-in-
     Compromise and Installment Agreements.--Section 7122 is 
     amended by adding at the end the following new subsection:
       ``(e) Frivolous Submissions, etc.--Notwithstanding any 
     other provision of this section, if the Secretary determines 
     that any portion of an application for an offer-in-compromise 
     or installment agreement submitted under this section or 
     section 6159 meets the requirement of clause (i) or (ii) of 
     section 6702(b)(2)(A), then the Secretary may treat such 
     portion as if it were never submitted and such portion shall 
     not be subject to any further administrative or judicial 
     review.''.
       (e) Clerical Amendment.--The table of sections for part I 
     of subchapter B of chapter 68 is amended by striking the item 
     relating to section 6702 and inserting the following new 
     item:

``Sec. 6702. Frivolous tax submissions.''.

       (f) Effective Date.--The amendments made by this section 
     shall apply to submissions made and issues raised after the 
     date on which the Secretary first prescribes a list under 
     section 6702(c) of the Internal Revenue Code of 1986, as 
     amended by subsection (a).

     SEC. __72. INCREASE IN CRIMINAL MONETARY PENALTY LIMITATION 
                   FOR THE UNDERPAYMENT OR OVERPAYMENT OF TAX DUE 
                   TO FRAUD.

       (a) In General.--Section 7206 (relating to fraud and false 
     statements) is amended--

[[Page S2192]]

       (1) by striking ``Any person who--'' and inserting ``(a) In 
     General.--Any person who--'', and
       (2) by adding at the end the following new subsection:
       ``(b) Increase in Monetary Limitation for Underpayment or 
     Overpayment of Tax Due to Fraud.--If any portion of any 
     underpayment (as defined in section 6664(a)) or overpayment 
     (as defined in section 6401(a)) of tax required to be shown 
     on a return is attributable to fraudulent action described in 
     subsection (a), the applicable dollar amount under subsection 
     (a) shall in no event be less than an amount equal to such 
     portion. A rule similar to the rule under section 6663(b) 
     shall apply for purposes of determining the portion so 
     attributable.''.
       (b) Increase in Penalties.--
       (1) Attempt to evade or defeat tax.--Section 7201 is 
     amended--
       (A) by striking ``$100,000'' and inserting ``$250,000'',
       (B) by striking ``$500,000'' and inserting ``$1,000,000'', 
     and
       (C) by striking ``5 years'' and inserting ``10 years''.
       (2) Willful failure to file return, supply information, or 
     pay tax.--Section 7203 is amended--
       (A) in the first sentence--
       (i) by striking ``misdemeanor'' and inserting ``felony'', 
     and
       (ii) by striking ``1 year'' and inserting ``10 years'', and
       (B) by striking the third sentence.
       (3) Fraud and false statements.--Section 7206(a) (as 
     redesignated by subsection (a)) is amended--
       (A) by striking ``$100,000'' and inserting ``$250,000'',
       (B) by striking ``$500,000'' and inserting ``$1,000,000'', 
     and
       (C) by striking ``3 years'' and inserting ``5 years''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to underpayments and overpayments attributable to 
     actions occurring after the date of the enactment of this 
     Act.

     SEC. __73. MODIFICATION OF INTERACTION BETWEEN SUBPART F AND 
                   PASSIVE FOREIGN INVESTMENT COMPANY RULES.

       (a) Limitation on Exception From PFIC Rules for United 
     States Shareholders of Controlled Foreign Corporations.--
     Paragraph (2) of section 1297(e) (relating to passive foreign 
     investment company) is amended by adding at the end the 
     following flush sentence:

     ``Such term shall not include any period if the earning of 
     subpart F income by such corporation during such period would 
     result in only a remote likelihood of an inclusion in gross 
     income under section 951(a)(1)(A)(i).''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to taxable years of controlled foreign 
     corporations beginning after March 2, 2005, and to taxable 
     years of United States shareholders with or within which such 
     taxable years of controlled foreign corporations end.

     SEC. __74. TAX TREATMENT OF INVERTED CORPORATE ENTITIES.

       (a) In General.--Subchapter C of chapter 80 (relating to 
     provisions affecting more than one subtitle) is amended by 
     striking section 7874 and inserting the following:

     ``SEC. 7874. RULES RELATING TO INVERTED CORPORATE ENTITIES.

       ``(a) Inverted Corporations Treated as Domestic 
     Corporations.--
       ``(1) In general.--If a foreign incorporated entity is 
     treated as an inverted domestic corporation, then, 
     notwithstanding section 7701(a)(4), such entity shall be 
     treated for purposes of this title as a domestic corporation.
       ``(2) Inverted domestic corporation.--For purposes of this 
     section, a foreign incorporated entity shall be treated as an 
     inverted domestic corporation if, pursuant to a plan (or a 
     series of related transactions)--
       ``(A) the entity completes after March 20, 2002, the direct 
     or indirect acquisition of substantially all of the 
     properties held directly or indirectly by a domestic 
     corporation or substantially all of the properties 
     constituting a trade or business of a domestic partnership,
       ``(B) after the acquisition at least 80 percent of the 
     stock (by vote or value) of the entity is held--
       ``(i) in the case of an acquisition with respect to a 
     domestic corporation, by former shareholders of the domestic 
     corporation by reason of holding stock in the domestic 
     corporation, or
       ``(ii) in the case of an acquisition with respect to a 
     domestic partnership, by former partners of the domestic 
     partnership by reason of holding a capital or profits 
     interest in the domestic partnership, and
       ``(C) the expanded affiliated group which after the 
     acquisition includes the entity does not have substantial 
     business activities in the foreign country in which or under 
     the law of which the entity is created or organized when 
     compared to the total business activities of such expanded 
     affiliated group.

     Except as provided in regulations, an acquisition of 
     properties of a domestic corporation shall not be treated as 
     described in subparagraph (A) if none of the corporation's 
     stock was readily tradeable on an established securities 
     market at any time during the 4-year period ending on the 
     date of the acquisition.
       ``(b) Preservation of Domestic Tax Base in Certain 
     Inversion Transactions to Which Subsection (a) Does Not 
     Apply.--
       ``(1) In general.--If a foreign incorporated entity would 
     be treated as an inverted domestic corporation with respect 
     to an acquired entity if either--
       ``(A) subsection (a)(2)(A) were applied by substituting 
     `after December 31, 1996, and on or before March 20, 2002' 
     for `after March 20, 2002' and subsection (a)(2)(B) were 
     applied by substituting `more than 50 percent' for `at least 
     80 percent', or
       ``(B) subsection (a)(2)(B) were applied by substituting 
     `more than 50 percent' for `at least 80 percent',

     then the rules of subsection (c) shall apply to any inversion 
     gain of the acquired entity during the applicable period and 
     the rules of subsection (d) shall apply to any related party 
     transaction of the acquired entity during the applicable 
     period. This subsection shall not apply for any taxable year 
     if subsection (a) applies to such foreign incorporated entity 
     for such taxable year.
       ``(2) Acquired entity.--For purposes of this section--
       ``(A) In general.--The term `acquired entity' means the 
     domestic corporation or partnership substantially all of the 
     properties of which are directly or indirectly acquired in an 
     acquisition described in subsection (a)(2)(A) to which this 
     subsection applies.
       ``(B) Aggregation rules.--Any domestic person bearing a 
     relationship described in section 267(b) or 707(b) to an 
     acquired entity shall be treated as an acquired entity with 
     respect to the acquisition described in subparagraph (A).
       ``(3) Applicable period.--For purposes of this section--
       ``(A) In general.--The term `applicable period' means the 
     period--
       ``(i) beginning on the first date properties are acquired 
     as part of the acquisition described in subsection (a)(2)(A) 
     to which this subsection applies, and
       ``(ii) ending on the date which is 10 years after the last 
     date properties are acquired as part of such acquisition.
       ``(B) Special rule for inversions occurring before march 
     21, 2002.--In the case of any acquired entity to which 
     paragraph (1)(A) applies, the applicable period shall be the 
     10-year period beginning on January 1, 2003.
       ``(c) Tax on Inversion Gains May Not Be Offset.--If 
     subsection (b) applies--
       ``(1) In general.--The taxable income of an acquired entity 
     (or any expanded affiliated group which includes such entity) 
     for any taxable year which includes any portion of the 
     applicable period shall in no event be less than the 
     inversion gain of the entity for the taxable year.
       ``(2) Credits not allowed against tax on inversion gain.--
     Credits shall be allowed against the tax imposed by this 
     chapter on an acquired entity for any taxable year described 
     in paragraph (1) only to the extent such tax exceeds the 
     product of--
       ``(A) the amount of the inversion gain for the taxable 
     year, and
       ``(B) the highest rate of tax specified in section 
     11(b)(1).

     For purposes of determining the credit allowed by section 901 
     inversion gain shall be treated as from sources within the 
     United States.
       ``(3) Special rules for partnerships.--In the case of an 
     acquired entity which is a partnership--
       ``(A) the limitations of this subsection shall apply at the 
     partner rather than the partnership level,
       ``(B) the inversion gain of any partner for any taxable 
     year shall be equal to the sum of--
       ``(i) the partner's distributive share of inversion gain of 
     the partnership for such taxable year, plus
       ``(ii) income or gain required to be recognized for the 
     taxable year by the partner under section 367(a), 741, or 
     1001, or under any other provision of chapter 1, by reason of 
     the transfer during the applicable period of any partnership 
     interest of the partner in such partnership to the foreign 
     incorporated entity, and
       ``(C) the highest rate of tax specified in the rate 
     schedule applicable to the partner under chapter 1 shall be 
     substituted for the rate of tax under paragraph (2)(B).
       ``(4) Inversion gain.--For purposes of this section, the 
     term `inversion gain' means any income or gain required to be 
     recognized under section 304, 311(b), 367, 1001, or 1248, or 
     under any other provision of chapter 1, by reason of the 
     transfer during the applicable period of stock or other 
     properties by an acquired entity--
       ``(A) as part of the acquisition described in subsection 
     (a)(2)(A) to which subsection (b) applies, or
       ``(B) after such acquisition to a foreign related person.

     The Secretary may provide that income or gain from the sale 
     of inventories or other transactions in the ordinary course 
     of a trade or business shall not be treated as inversion gain 
     under subparagraph (B) to the extent the Secretary determines 
     such treatment would not be inconsistent with the purposes of 
     this section.
       ``(5) Coordination with section 172 and minimum tax.--Rules 
     similar to the rules of paragraphs (3) and (4) of section 
     860E(a) shall apply for purposes of this section.
       ``(6) Statute of limitations.--
       ``(A) In general.--The statutory period for the assessment 
     of any deficiency attributable to the inversion gain of any 
     taxpayer for any pre-inversion year shall not expire before 
     the expiration of 3 years from the date

[[Page S2193]]

     the Secretary is notified by the taxpayer (in such manner as 
     the Secretary may prescribe) of the acquisition described in 
     subsection (a)(2)(A) to which such gain relates and such 
     deficiency may be assessed before the expiration of such 3-
     year period notwithstanding the provisions of any other law 
     or rule of law which would otherwise prevent such assessment.
       ``(B) Pre-inversion year.--For purposes of subparagraph 
     (A), the term `pre-inversion year' means any taxable year 
     if--
       ``(i) any portion of the applicable period is included in 
     such taxable year, and
       ``(ii) such year ends before the taxable year in which the 
     acquisition described in subsection (a)(2)(A) is completed.
       ``(d) Special Rules Applicable to Acquired Entities to 
     Which Subsection (b) Applies.--
       ``(1) Increases in accuracy-related penalties.--In the case 
     of any underpayment of tax of an acquired entity to which 
     subsection (b) applies--
       ``(A) section 6662(a) shall be applied with respect to such 
     underpayment by substituting `30 percent' for `20 percent', 
     and
       ``(B) if such underpayment is attributable to one or more 
     gross valuation understatements, the increase in the rate of 
     penalty under section 6662(h) shall be to 50 percent rather 
     than 40 percent.
       ``(2) Modifications of limitation on interest deduction.--
     In the case of an acquired entity to which subsection (b) 
     applies, section 163(j) shall be applied--
       ``(A) without regard to paragraph (2)(A)(ii) thereof, and
       ``(B) by substituting `25 percent' for `50 percent' each 
     place it appears in paragraph (2)(B) thereof.
       ``(e) Other Definitions and Special Rules.--For purposes of 
     this section--
       ``(1) Rules for application of subsection (a)(2).--In 
     applying subsection (a)(2) for purposes of subsections (a) 
     and (b), the following rules shall apply:
       ``(A) Certain stock disregarded.--There shall not be taken 
     into account in determining ownership for purposes of 
     subsection (a)(2)(B)--
       ``(i) stock held by members of the expanded affiliated 
     group which includes the foreign incorporated entity, or
       ``(ii) stock of such entity which is sold in a public 
     offering or private placement related to the acquisition 
     described in subsection (a)(2)(A).
       ``(B) Plan deemed in certain cases.--If a foreign 
     incorporated entity acquires directly or indirectly 
     substantially all of the properties of a domestic corporation 
     or partnership during the 4-year period beginning on the date 
     which is 2 years before the ownership requirements of 
     subsection (a)(2)(B) are met with respect to such domestic 
     corporation or partnership, such actions shall be treated as 
     pursuant to a plan.
       ``(C) Certain transfers disregarded.--The transfer of 
     properties or liabilities (including by contribution or 
     distribution) shall be disregarded if such transfers are part 
     of a plan a principal purpose of which is to avoid the 
     purposes of this section.
       ``(D) Special rule for related partnerships.--For purposes 
     of applying subsection (a)(2) to the acquisition of a 
     domestic partnership, except as provided in regulations, all 
     partnerships which are under common control (within the 
     meaning of section 482) shall be treated as 1 partnership.
       ``(E) Treatment of certain rights.--The Secretary shall 
     prescribe such regulations as may be necessary--
       ``(i) to treat warrants, options, contracts to acquire 
     stock, convertible debt instruments, and other similar 
     interests as stock, and
       ``(ii) to treat stock as not stock.
       ``(2) Expanded affiliated group.--The term `expanded 
     affiliated group' means an affiliated group as defined in 
     section 1504(a) but without regard to section 1504(b)(3), 
     except that section 1504(a) shall be applied by substituting 
     `more than 50 percent' for `at least 80 percent' each place 
     it appears.
       ``(3) Foreign incorporated entity.--The term `foreign 
     incorporated entity' means any entity which is, or but for 
     subsection (a)(1) would be, treated as a foreign corporation 
     for purposes of this title.
       ``(4) Foreign related person.--The term `foreign related 
     person' means, with respect to any acquired entity, a foreign 
     person which--
       ``(A) bears a relationship to such entity described in 
     section 267(b) or 707(b), or
       ``(B) is under the same common control (within the meaning 
     of section 482) as such entity.
       ``(5) Subsequent acquisitions by unrelated domestic 
     corporations.--
       ``(A) In general.--Subject to such conditions, limitations, 
     and exceptions as the Secretary may prescribe, if, after an 
     acquisition described in subsection (a)(2)(A) to which 
     subsection (b) applies, a domestic corporation stock of which 
     is traded on an established securities market acquires 
     directly or indirectly any properties of one or more acquired 
     entities in a transaction with respect to which the 
     requirements of subparagraph (B) are met, this section shall 
     cease to apply to any such acquired entity with respect to 
     which such requirements are met.
       ``(B) Requirements.--The requirements of the subparagraph 
     are met with respect to a transaction involving any 
     acquisition described in subparagraph (A) if--
       ``(i) before such transaction the domestic corporation did 
     not have a relationship described in section 267(b) or 
     707(b), and was not under common control (within the meaning 
     of section 482), with the acquired entity, or any member of 
     an expanded affiliated group including such entity, and
       ``(ii) after such transaction, such acquired entity--

       ``(I) is a member of the same expanded affiliated group 
     which includes the domestic corporation or has such a 
     relationship or is under such common control with any member 
     of such group, and
       ``(II) is not a member of, and does not have such a 
     relationship and is not under such common control with any 
     member of, the expanded affiliated group which before such 
     acquisition included such entity.

       ``(f) Regulations.--The Secretary shall provide such 
     regulations as are necessary to carry out this section, 
     including regulations providing for such adjustments to the 
     application of this section as are necessary to prevent the 
     avoidance of the purposes of this section, including the 
     avoidance of such purposes through--
       ``(1) the use of related persons, pass-thru or other 
     noncorporate entities, or other intermediaries, or
       ``(2) transactions designed to have persons cease to be (or 
     not become) members of expanded affiliated groups or related 
     persons.''.
       (b) Information Reporting.--The Secretary of the Treasury 
     shall exercise the Secretary's authority under the Internal 
     Revenue Code of 1986 to require entities involved in 
     transactions to which section 7874 of such Code (as added by 
     subsection (a)) applies to report to the Secretary, 
     shareholders, partners, and such other persons as the 
     Secretary may prescribe such information as is necessary to 
     ensure the proper tax treatment of such transactions.
       (c) Conforming Amendment.--The table of sections for 
     subchapter C of chapter 80 is amended by striking the item 
     relating to section 7874 and inserting the following:

``Sec. 7874. Rules relating to inverted corporate entities.''.

       (d) Transition Rule for Certain Regulated Investment 
     Companies and Unit Investment Trusts.--Notwithstanding 
     section 7874 of the Internal Revenue Code of 1986 (as added 
     by subsection (a)), a regulated investment company, or other 
     pooled fund or trust specified by the Secretary of the 
     Treasury, may elect to recognize gain by reason of section 
     367(a) of such Code with respect to a transaction under which 
     a foreign incorporated entity is treated as an inverted 
     domestic corporation under section 7874(a) of such Code by 
     reason of an acquisition completed after March 20, 2002, and 
     before January 1, 2004.
       (e) Disclosure of Corporate Expatriation Transactions.--
       (1) In general.--Section 14 of the Securities Exchange Act 
     of 1934 (15 U.S.C. 78n) is amended by adding at the end the 
     following new subsection:
       ``(i) Proxy Solicitations in Connection With Corporate 
     Expatriation Transactions.--
       ``(1) Disclosure to shareholders of effects of corporate 
     expatriation transaction.--The Commission shall, by rule, 
     require that each domestic issuer shall prominently disclose, 
     not later than 5 business days before any shareholder vote 
     relating to a corporate expatriation transaction, as a 
     separate and distinct document accompanying each proxy 
     statement relating to the transaction--
       ``(A) the number of employees of the domestic issuer that 
     would be located in the new foreign jurisdiction of 
     incorporation or organization of that issuer upon completion 
     of the corporate expatriation transaction;
       ``(B) how the rights of holders of the securities of the 
     domestic issuer would be impacted by a completed corporate 
     expatriation transaction, and any differences in such rights 
     before and after a completed corporate expatriation 
     transaction; and
       ``(C) that, as a result of a completed corporate 
     expatriation transaction, any taxable holder of the 
     securities of the domestic issuer shall be subject to the 
     taxation of any capital gains realized with respect to such 
     securities, and the amount of any such capital gains tax that 
     would apply as a result of the transaction.
       ``(2) Definitions.--In this subsection, the following 
     definitions shall apply:
       ``(A) Corporate expatriation transaction.--The term 
     `corporate expatriation transaction' means any transaction, 
     or series of related transactions, described in subsection 
     (a) or (b) of section 7874 of the Internal Revenue Code of 
     1986.
       ``(A) Domestic issuer.--The term `domestic issuer' means an 
     issuer created or organized in the United States or under the 
     law of the United States or of any State.''
       (2) Effective date.--Section 14(i) of the Securities 
     Exchange Act of 1934 (as added by this subsection) shall 
     apply with respect to corporate expatriation transactions (as 
     defined in that section 14(i)) proposed on and after the date 
     of enactment of this Act.
       (f) Effective date.--Except as provided in subsection 
     (e)(2), the amendments made by this section shall take effect 
     as if included in the American Jobs Creation Act of 2004.

     SEC. __75. IMPOSITION OF MARK-TO-MARKET TAX ON INDIVIDUALS 
                   WHO EXPATRIATE.

       (a) In General.--Subpart A of part II of subchapter N of 
     chapter 1 is amended by inserting after section 877 the 
     following new section:

[[Page S2194]]

     ``SEC. 877A. TAX RESPONSIBILITIES OF EXPATRIATION.

       ``(a) General Rules.--For purposes of this subtitle--
       ``(1) Mark to market.--Except as provided in subsections 
     (d) and (f), all property of a covered expatriate to whom 
     this section applies shall be treated as sold on the day 
     before the expatriation date for its fair market value.
       ``(2) Recognition of gain or loss.--In the case of any sale 
     under paragraph (1)--
       ``(A) notwithstanding any other provision of this title, 
     any gain arising from such sale shall be taken into account 
     for the taxable year of the sale, and
       ``(B) any loss arising from such sale shall be taken into 
     account for the taxable year of the sale to the extent 
     otherwise provided by this title, except that section 1091 
     shall not apply to any such loss.

     Proper adjustment shall be made in the amount of any gain or 
     loss subsequently realized for gain or loss taken into 
     account under the preceding sentence.
       ``(3) Exclusion for certain gain.--
       ``(A) In general.--The amount which, but for this 
     paragraph, would be includible in the gross income of any 
     individual by reason of this section shall be reduced (but 
     not below zero) by $600,000. For purposes of this paragraph, 
     allocable expatriation gain taken into account under 
     subsection (f)(2) shall be treated in the same manner as an 
     amount required to be includible in gross income.
       ``(B) Cost-of-living adjustment.--
       ``(i) In general.--In the case of an expatriation date 
     occurring in any calendar year after 2004, the $600,000 
     amount under subparagraph (A) shall be increased by an amount 
     equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for such calendar year, determined by 
     substituting `calendar year 2003' for `calendar year 1992' in 
     subparagraph (B) thereof.

       ``(ii) Rounding rules.--If any amount after adjustment 
     under clause (i) is not a multiple of $1,000, such amount 
     shall be rounded to the next lower multiple of $1,000.
       ``(4) Election to continue to be taxed as united states 
     citizen.--
       ``(A) In general.--If a covered expatriate elects the 
     application of this paragraph--
       ``(i) this section (other than this paragraph and 
     subsection (i)) shall not apply to the expatriate, but
       ``(ii) in the case of property to which this section would 
     apply but for such election, the expatriate shall be subject 
     to tax under this title in the same manner as if the 
     individual were a United States citizen.
       ``(B) Requirements.--Subparagraph (A) shall not apply to an 
     individual unless the individual--
       ``(i) provides security for payment of tax in such form and 
     manner, and in such amount, as the Secretary may require,
       ``(ii) consents to the waiver of any right of the 
     individual under any treaty of the United States which would 
     preclude assessment or collection of any tax which may be 
     imposed by reason of this paragraph, and
       ``(iii) complies with such other requirements as the 
     Secretary may prescribe.
       ``(C) Election.--An election under subparagraph (A) shall 
     apply to all property to which this section would apply but 
     for the election and, once made, shall be irrevocable. Such 
     election shall also apply to property the basis of which is 
     determined in whole or in part by reference to the property 
     with respect to which the election was made.
       ``(b) Election To Defer Tax.--
       ``(1) In general.--If the taxpayer elects the application 
     of this subsection with respect to any property treated as 
     sold by reason of subsection (a), the payment of the 
     additional tax attributable to such property shall be 
     postponed until the due date of the return for the taxable 
     year in which such property is disposed of (or, in the case 
     of property disposed of in a transaction in which gain is not 
     recognized in whole or in part, until such other date as the 
     Secretary may prescribe).
       ``(2) Determination of tax with respect to property.--For 
     purposes of paragraph (1), the additional tax attributable to 
     any property is an amount which bears the same ratio to the 
     additional tax imposed by this chapter for the taxable year 
     solely by reason of subsection (a) as the gain taken into 
     account under subsection (a) with respect to such property 
     bears to the total gain taken into account under subsection 
     (a) with respect to all property to which subsection (a) 
     applies.
       ``(3) Termination of postponement.--No tax may be postponed 
     under this subsection later than the due date for the return 
     of tax imposed by this chapter for the taxable year which 
     includes the date of death of the expatriate (or, if earlier, 
     the time that the security provided with respect to the 
     property fails to meet the requirements of paragraph (4), 
     unless the taxpayer corrects such failure within the time 
     specified by the Secretary).
       ``(4) Security.--
       ``(A) In general.--No election may be made under paragraph 
     (1) with respect to any property unless adequate security is 
     provided to the Secretary with respect to such property.
       ``(B) Adequate security.--For purposes of subparagraph (A), 
     security with respect to any property shall be treated as 
     adequate security if--
       ``(i) it is a bond in an amount equal to the deferred tax 
     amount under paragraph (2) for the property, or
       ``(ii) the taxpayer otherwise establishes to the 
     satisfaction of the Secretary that the security is adequate.
       ``(5) Waiver of certain rights.--No election may be made 
     under paragraph (1) unless the taxpayer consents to the 
     waiver of any right under any treaty of the United States 
     which would preclude assessment or collection of any tax 
     imposed by reason of this section.
       ``(6) Elections.--An election under paragraph (1) shall 
     only apply to property described in the election and, once 
     made, is irrevocable. An election may be made under paragraph 
     (1) with respect to an interest in a trust with respect to 
     which gain is required to be recognized under subsection 
     (f)(1).
       ``(7) Interest.--For purposes of section 6601--
       ``(A) the last date for the payment of tax shall be 
     determined without regard to the election under this 
     subsection, and
       ``(B) section 6621(a)(2) shall be applied by substituting 
     `5 percentage points' for `3 percentage points' in 
     subparagraph (B) thereof.
       ``(c) Covered Expatriate.--For purposes of this section--
       ``(1) In general.--Except as provided in paragraph (2), the 
     term `covered expatriate' means an expatriate.
       ``(2) Exceptions.--An individual shall not be treated as a 
     covered expatriate if--
       ``(A) the individual--
       ``(i) became at birth a citizen of the United States and a 
     citizen of another country and, as of the expatriation date, 
     continues to be a citizen of, and is taxed as a resident of, 
     such other country, and
       ``(ii) has not been a resident of the United States (as 
     defined in section 7701(b)(1)(A)(ii)) during the 5 taxable 
     years ending with the taxable year during which the 
     expatriation date occurs, or
       ``(B)(i) the individual's relinquishment of United States 
     citizenship occurs before such individual attains age 18\1/
     2\, and
       ``(ii) the individual has been a resident of the United 
     States (as so defined) for not more than 5 taxable years 
     before the date of relinquishment.
       ``(d) Exempt Property; Special Rules for Pension Plans.--
       ``(1) Exempt property.--This section shall not apply to the 
     following:
       ``(A) United states real property interests.--Any United 
     States real property interest (as defined in section 
     897(c)(1)), other than stock of a United States real property 
     holding corporation which does not, on the day before the 
     expatriation date, meet the requirements of section 
     897(c)(2).
       ``(B) Specified property.--Any property or interest in 
     property not described in subparagraph (A) which the 
     Secretary specifies in regulations.
       ``(2) Special rules for certain retirement plans.--
       ``(A) In general.--If a covered expatriate holds on the day 
     before the expatriation date any interest in a retirement 
     plan to which this paragraph applies--
       ``(i) such interest shall not be treated as sold for 
     purposes of subsection (a)(1), but
       ``(ii) an amount equal to the present value of the 
     expatriate's nonforfeitable accrued benefit shall be treated 
     as having been received by such individual on such date as a 
     distribution under the plan.
       ``(B) Treatment of subsequent distributions.--In the case 
     of any distribution on or after the expatriation date to or 
     on behalf of the covered expatriate from a plan from which 
     the expatriate was treated as receiving a distribution under 
     subparagraph (A), the amount otherwise includible in gross 
     income by reason of the subsequent distribution shall be 
     reduced by the excess of the amount includible in gross 
     income under subparagraph (A) over any portion of such amount 
     to which this subparagraph previously applied.
       ``(C) Treatment of subsequent distributions by plan.--For 
     purposes of this title, a retirement plan to which this 
     paragraph applies, and any person acting on the plan's 
     behalf, shall treat any subsequent distribution described in 
     subparagraph (B) in the same manner as such distribution 
     would be treated without regard to this paragraph.
       ``(D) Applicable plans.--This paragraph shall apply to--
       ``(i) any qualified retirement plan (as defined in section 
     4974(c)),
       ``(ii) an eligible deferred compensation plan (as defined 
     in section 457(b)) of an eligible employer described in 
     section 457(e)(1)(A), and
       ``(iii) to the extent provided in regulations, any foreign 
     pension plan or similar retirement arrangements or programs.
       ``(e) Definitions.--For purposes of this section--
       ``(1) Expatriate.--The term `expatriate' means--
       ``(A) any United States citizen who relinquishes 
     citizenship, and
       ``(B) any long-term resident of the United States who--
       ``(i) ceases to be a lawful permanent resident of the 
     United States (within the meaning of section 7701(b)(6)), or
       ``(ii) commences to be treated as a resident of a foreign 
     country under the provisions of a tax treaty between the 
     United States and the foreign country and who does not waive 
     the benefits of such treaty applicable to residents of the 
     foreign country.
       ``(2) Expatriation date.--The term `expatriation date' 
     means--
       ``(A) the date an individual relinquishes United States 
     citizenship, or

[[Page S2195]]

       ``(B) in the case of a long-term resident of the United 
     States, the date of the event described in clause (i) or (ii) 
     of paragraph (1)(B).
       ``(3) Relinquishment of citizenship.--A citizen shall be 
     treated as relinquishing United States citizenship on the 
     earliest of--
       ``(A) the date the individual renounces such individual's 
     United States nationality before a diplomatic or consular 
     officer of the United States pursuant to paragraph (5) of 
     section 349(a) of the Immigration and Nationality Act (8 
     U.S.C. 1481(a)(5)),
       ``(B) the date the individual furnishes to the United 
     States Department of State a signed statement of voluntary 
     relinquishment of United States nationality confirming the 
     performance of an act of expatriation specified in paragraph 
     (1), (2), (3), or (4) of section 349(a) of the Immigration 
     and Nationality Act (8 U.S.C. 1481(a)(1)-(4)),
       ``(C) the date the United States Department of State issues 
     to the individual a certificate of loss of nationality, or
       ``(D) the date a court of the United States cancels a 
     naturalized citizen's certificate of naturalization.

     Subparagraph (A) or (B) shall not apply to any individual 
     unless the renunciation or voluntary relinquishment is 
     subsequently approved by the issuance to the individual of a 
     certificate of loss of nationality by the United States 
     Department of State.
       ``(4) Long-term resident.--The term `long-term resident' 
     has the meaning given to such term by section 877(e)(2).
       ``(f) Special Rules Applicable to Beneficiaries' Interests 
     in Trust.--
       ``(1) In general.--Except as provided in paragraph (2), if 
     an individual is determined under paragraph (3) to hold an 
     interest in a trust on the day before the expatriation date--
       ``(A) the individual shall not be treated as having sold 
     such interest,
       ``(B) such interest shall be treated as a separate share in 
     the trust, and
       ``(C)(i) such separate share shall be treated as a separate 
     trust consisting of the assets allocable to such share,
       ``(ii) the separate trust shall be treated as having sold 
     its assets on the day before the expatriation date for their 
     fair market value and as having distributed all of its assets 
     to the individual as of such time, and
       ``(iii) the individual shall be treated as having 
     recontributed the assets to the separate trust.

     Subsection (a)(2) shall apply to any income, gain, or loss of 
     the individual arising from a distribution described in 
     subparagraph (C)(ii). In determining the amount of such 
     distribution, proper adjustments shall be made for 
     liabilities of the trust allocable to an individual's share 
     in the trust.
       ``(2) Special rules for interests in qualified trusts.--
       ``(A) In general.--If the trust interest described in 
     paragraph (1) is an interest in a qualified trust--
       ``(i) paragraph (1) and subsection (a) shall not apply, and
       ``(ii) in addition to any other tax imposed by this title, 
     there is hereby imposed on each distribution with respect to 
     such interest a tax in the amount determined under 
     subparagraph (B).
       ``(B) Amount of tax.--The amount of tax under subparagraph 
     (A)(ii) shall be equal to the lesser of--
       ``(i) the highest rate of tax imposed by section 1(e) for 
     the taxable year which includes the day before the 
     expatriation date, multiplied by the amount of the 
     distribution, or
       ``(ii) the balance in the deferred tax account immediately 
     before the distribution determined without regard to any 
     increases under subparagraph (C)(ii) after the 30th day 
     preceding the distribution.
       ``(C) Deferred tax account.--For purposes of subparagraph 
     (B)(ii)--
       ``(i) Opening balance.--The opening balance in a deferred 
     tax account with respect to any trust interest is an amount 
     equal to the tax which would have been imposed on the 
     allocable expatriation gain with respect to the trust 
     interest if such gain had been included in gross income under 
     subsection (a).
       ``(ii) Increase for interest.--The balance in the deferred 
     tax account shall be increased by the amount of interest 
     determined (on the balance in the account at the time the 
     interest accrues), for periods after the 90th day after the 
     expatriation date, by using the rates and method applicable 
     under section 6621 for underpayments of tax for such periods, 
     except that section 6621(a)(2) shall be applied by 
     substituting `5 percentage points' for `3 percentage points' 
     in subparagraph (B) thereof.
       ``(iii) Decrease for taxes previously paid.--The balance in 
     the tax deferred account shall be reduced--

       ``(I) by the amount of taxes imposed by subparagraph (A) on 
     any distribution to the person holding the trust interest, 
     and
       ``(II) in the case of a person holding a nonvested 
     interest, to the extent provided in regulations, by the 
     amount of taxes imposed by subparagraph (A) on distributions 
     from the trust with respect to nonvested interests not held 
     by such person.

       ``(D) Allocable expatriation gain.--For purposes of this 
     paragraph, the allocable expatriation gain with respect to 
     any beneficiary's interest in a trust is the amount of gain 
     which would be allocable to such beneficiary's vested and 
     nonvested interests in the trust if the beneficiary held 
     directly all assets allocable to such interests.
       ``(E) Tax deducted and withheld.--
       ``(i) In general.--The tax imposed by subparagraph (A)(ii) 
     shall be deducted and withheld by the trustees from the 
     distribution to which it relates.
       ``(ii) Exception where failure to waive treaty rights.--If 
     an amount may not be deducted and withheld under clause (i) 
     by reason of the distributee failing to waive any treaty 
     right with respect to such distribution--

       ``(I) the tax imposed by subparagraph (A)(ii) shall be 
     imposed on the trust and each trustee shall be personally 
     liable for the amount of such tax, and
       ``(II) any other beneficiary of the trust shall be entitled 
     to recover from the distributee the amount of such tax 
     imposed on the other beneficiary.

       ``(F) Disposition.--If a trust ceases to be a qualified 
     trust at any time, a covered expatriate disposes of an 
     interest in a qualified trust, or a covered expatriate 
     holding an interest in a qualified trust dies, then, in lieu 
     of the tax imposed by subparagraph (A)(ii), there is hereby 
     imposed a tax equal to the lesser of--
       ``(i) the tax determined under paragraph (1) as if the day 
     before the expatriation date were the date of such cessation, 
     disposition, or death, whichever is applicable, or
       ``(ii) the balance in the tax deferred account immediately 
     before such date.

     Such tax shall be imposed on the trust and each trustee shall 
     be personally liable for the amount of such tax and any other 
     beneficiary of the trust shall be entitled to recover from 
     the covered expatriate or the estate the amount of such tax 
     imposed on the other beneficiary.
       ``(G) Definitions and special rules.--For purposes of this 
     paragraph--
       ``(i) Qualified trust.--The term `qualified trust' means a 
     trust which is described in section 7701(a)(30)(E).
       ``(ii) Vested interest.--The term `vested interest' means 
     any interest which, as of the day before the expatriation 
     date, is vested in the beneficiary.
       ``(iii) Nonvested interest.--The term `nonvested interest' 
     means, with respect to any beneficiary, any interest in a 
     trust which is not a vested interest. Such interest shall be 
     determined by assuming the maximum exercise of discretion in 
     favor of the beneficiary and the occurrence of all 
     contingencies in favor of the beneficiary.
       ``(iv) Adjustments.--The Secretary may provide for such 
     adjustments to the bases of assets in a trust or a deferred 
     tax account, and the timing of such adjustments, in order to 
     ensure that gain is taxed only once.
       ``(v) Coordination with retirement plan rules.--This 
     subsection shall not apply to an interest in a trust which is 
     part of a retirement plan to which subsection (d)(2) applies.
       ``(3) Determination of beneficiaries' interest in trust.--
       ``(A) Determinations under paragraph (1).--For purposes of 
     paragraph (1), a beneficiary's interest in a trust shall be 
     based upon all relevant facts and circumstances, including 
     the terms of the trust instrument and any letter of wishes or 
     similar document, historical patterns of trust distributions, 
     and the existence of and functions performed by a trust 
     protector or any similar adviser.
       ``(B) Other determinations.--For purposes of this section--
       ``(i) Constructive ownership.--If a beneficiary of a trust 
     is a corporation, partnership, trust, or estate, the 
     shareholders, partners, or beneficiaries shall be deemed to 
     be the trust beneficiaries for purposes of this section.
       ``(ii) Taxpayer return position.--A taxpayer shall clearly 
     indicate on its income tax return--

       ``(I) the methodology used to determine that taxpayer's 
     trust interest under this section, and
       ``(II) if the taxpayer knows (or has reason to know) that 
     any other beneficiary of such trust is using a different 
     methodology to determine such beneficiary's trust interest 
     under this section.

       ``(g) Termination of Deferrals, etc.--In the case of any 
     covered expatriate, notwithstanding any other provision of 
     this title--
       ``(1) any period during which recognition of income or gain 
     is deferred shall terminate on the day before the 
     expatriation date, and
       ``(2) any extension of time for payment of tax shall cease 
     to apply on the day before the expatriation date and the 
     unpaid portion of such tax shall be due and payable at the 
     time and in the manner prescribed by the Secretary.
       ``(h) Imposition of Tentative Tax.--
       ``(1) In general.--If an individual is required to include 
     any amount in gross income under subsection (a) for any 
     taxable year, there is hereby imposed, immediately before the 
     expatriation date, a tax in an amount equal to the amount of 
     tax which would be imposed if the taxable year were a short 
     taxable year ending on the expatriation date.
       ``(2) Due date.--The due date for any tax imposed by 
     paragraph (1) shall be the 90th day after the expatriation 
     date.
       ``(3) Treatment of tax.--Any tax paid under paragraph (1) 
     shall be treated as a payment of the tax imposed by this 
     chapter for the taxable year to which subsection (a) applies.
       ``(4) Deferral of tax.--The provisions of subsection (b) 
     shall apply to the tax imposed by this subsection to the 
     extent attributable to gain includible in gross income by 
     reason of this section.

[[Page S2196]]

       ``(i) Special Liens for Deferred Tax Amounts.--
       ``(1) Imposition of lien.--
       ``(A) In general.--If a covered expatriate makes an 
     election under subsection (a)(4) or (b) which results in the 
     deferral of any tax imposed by reason of subsection (a), the 
     deferred amount (including any interest, additional amount, 
     addition to tax, assessable penalty, and costs attributable 
     to the deferred amount) shall be a lien in favor of the 
     United States on all property of the expatriate located in 
     the United States (without regard to whether this section 
     applies to the property).
       ``(B) Deferred amount.--For purposes of this subsection, 
     the deferred amount is the amount of the increase in the 
     covered expatriate's income tax which, but for the election 
     under subsection (a)(4) or (b), would have occurred by reason 
     of this section for the taxable year including the 
     expatriation date.
       ``(2) Period of lien.--The lien imposed by this subsection 
     shall arise on the expatriation date and continue until--
       ``(A) the liability for tax by reason of this section is 
     satisfied or has become unenforceable by reason of lapse of 
     time, or
       ``(B) it is established to the satisfaction of the 
     Secretary that no further tax liability may arise by reason 
     of this section.
       ``(3) Certain rules apply.--The rules set forth in 
     paragraphs (1), (3), and (4) of section 6324A(d) shall apply 
     with respect to the lien imposed by this subsection as if it 
     were a lien imposed by section 6324A.
       ``(j) Regulations.--The Secretary shall prescribe such 
     regulations as may be necessary or appropriate to carry out 
     the purposes of this section.''.
       (b) Inclusion in Income of Gifts and Bequests Received by 
     United States Citizens and Residents From Expatriates.--
     Section 102 (relating to gifts, etc. not included in gross 
     income) is amended by adding at the end the following new 
     subsection:
       ``(d) Gifts and Inheritances From Covered Expatriates.--
       ``(1) In general.--Subsection (a) shall not exclude from 
     gross income the value of any property acquired by gift, 
     bequest, devise, or inheritance from a covered expatriate 
     after the expatriation date. For purposes of this subsection, 
     any term used in this subsection which is also used in 
     section 877A shall have the same meaning as when used in 
     section 877A.
       ``(2) Exceptions for transfers otherwise subject to estate 
     or gift tax.--Paragraph (1) shall not apply to any property 
     if either--
       ``(A) the gift, bequest, devise, or inheritance is--
       ``(i) shown on a timely filed return of tax imposed by 
     chapter 12 as a taxable gift by the covered expatriate, or
       ``(ii) included in the gross estate of the covered 
     expatriate for purposes of chapter 11 and shown on a timely 
     filed return of tax imposed by chapter 11 of the estate of 
     the covered expatriate, or
       ``(B) no such return was timely filed but no such return 
     would have been required to be filed even if the covered 
     expatriate were a citizen or long-term resident of the United 
     States.''.
       (c) Definition of Termination of United States 
     Citizenship.--Section 7701(a) is amended by adding at the end 
     the following new paragraph:
       ``(48) Termination of united states citizenship.--
       ``(A) In general.--An individual shall not cease to be 
     treated as a United States citizen before the date on which 
     the individual's citizenship is treated as relinquished under 
     section 877A(e)(3).
       ``(B) Dual citizens.--Under regulations prescribed by the 
     Secretary, subparagraph (A) shall not apply to an individual 
     who became at birth a citizen of the United States and a 
     citizen of another country.''.
       (d) Ineligibility for Visa or Admission to United States.--
       (1) In general.--Section 212(a)(10)(E) of the Immigration 
     and Nationality Act (8 U.S.C. 1182(a)(10)(E)) is amended to 
     read as follows:
       ``(E) Former citizens not in compliance with expatriation 
     revenue provisions.--Any alien who is a former citizen of the 
     United States who relinquishes United States citizenship 
     (within the meaning of section 877A(e)(3) of the Internal 
     Revenue Code of 1986) and who is not in compliance with 
     section 877A of such Code (relating to expatriation).''.
       (2) Availability of information.--
       (A) In general.--Section 6103(l) (relating to disclosure of 
     returns and return information for purposes other than tax 
     administration) is amended by adding at the end the following 
     new paragraph:
       ``(19) Disclosure to deny visa or admission to certain 
     expatriates.--Upon written request of the Attorney General or 
     the Attorney General's delegate, the Secretary shall disclose 
     whether an individual is in compliance with section 877A (and 
     if not in compliance, any items of noncompliance) to officers 
     and employees of the Federal agency responsible for 
     administering section 212(a)(10)(E) of the Immigration and 
     Nationality Act solely for the purpose of, and to the extent 
     necessary in, administering such section 212(a)(10)(E).''.
       (B) Safeguards.--
       (i) Technical amendments.--Paragraph (4) of section 6103(p) 
     of the Internal Revenue Code of 1986, as amended by section 
     202(b)(2)(B) of the Trade Act of 2002 (Public Law 107-210; 
     116 Stat. 961), is amended by striking ``or (17)'' after 
     ``any other person described in subsection (l)(16)'' each 
     place it appears and inserting ``or (18)''.
       (ii) Conforming amendments.--Section 6103(p)(4) (relating 
     to safeguards), as amended by clause (i), is amended by 
     striking ``or (18)'' after ``any other person described in 
     subsection (l)(16)'' each place it appears and inserting 
     ``(18), or (19)''.
       (3) Effective dates.--
       (A) In general.--Except as provided in subparagraph (B), 
     the amendments made by this subsection shall apply to 
     individuals who relinquish United States citizenship on or 
     after the date of the enactment of this Act.
       (B) Technical amendments.--The amendments made by paragraph 
     (2)(B)(i) shall take effect as if included in the amendments 
     made by section 202(b)(2)(B) of the Trade Act of 2002 (Public 
     Law 107-210; 116 Stat. 961).
       (e) Conforming Amendments.--
       (1) Section 877 is amended by adding at the end the 
     following new subsection:
       ``(g) Application.--This section shall not apply to an 
     expatriate (as defined in section 877A(e)) whose expatriation 
     date (as so defined) occurs on or after April 1, 2005.''.
       (2) Section 2107 is amended by adding at the end the 
     following new subsection:
       ``(f) Application.--This section shall not apply to any 
     expatriate subject to section 877A.''.
       (3) Section 2501(a)(3) is amended by adding at the end the 
     following new subparagraph:
       ``(F) Application.--This paragraph shall not apply to any 
     expatriate subject to section 877A.''.
       (4)(A) Paragraph (1) of section 6039G(d) is amended by 
     inserting ``or 877A'' after ``section 877''.
       (B) The second sentence of section 6039G(e) is amended by 
     inserting ``or who relinquishes United States citizenship 
     (within the meaning of section 877A(e)(3))'' after 
     ``877(a))''.
       (C) Section 6039G(f) is amended by inserting ``or 
     877A(e)(2)(B)'' after ``877(e)(1)''.
       (f) Clerical Amendment.--The table of sections for subpart 
     A of part II of subchapter N of chapter 1 is amended by 
     inserting after the item relating to section 877 the 
     following new item:

``Sec. 877A. Tax responsibilities of expatriation.''.

       (g) Effective Date.--
       (1) In general.--Except as provided in this subsection, the 
     amendments made by this section shall apply to expatriates 
     (within the meaning of section 877A(e) of the Internal 
     Revenue Code of 1986, as added by this section) whose 
     expatriation date (as so defined) occurs on or after April 1, 
     2005.
       (2) Gifts and bequests.--Section 102(d) of the Internal 
     Revenue Code of 1986 (as added by subsection (b)) shall apply 
     to gifts and bequests received on or after April 1, 2005, 
     from an individual or the estate of an individual whose 
     expatriation date (as so defined) occurs after such date.
       (3) Due date for tentative tax.--The due date under section 
     877A(h)(2) of the Internal Revenue Code of 1986, as added by 
     this section, shall in no event occur before the 90th day 
     after the date of the enactment of this Act.

     SEC. __76. DOUBLING OF CERTAIN PENALTIES, FINES, AND INTEREST 
                   ON UNDERPAYMENTS RELATED TO CERTAIN OFFSHORE 
                   FINANCIAL ARRANGEMENT.

       (a) Determination of Penalty.--
       (1) In general.--Notwithstanding any other provision of 
     law, in the case of an applicable taxpayer--
       (A) the determination as to whether any interest or 
     applicable penalty is to be imposed with respect to any 
     arrangement to which any initiative described in paragraph 
     (2) applied, or to any underpayment of Federal income tax 
     attributable to items arising in connection with any 
     arrangement described in paragraph (2), shall be made without 
     regard to section 6664 of the Internal Revenue Code of 1986, 
     and
       (B) if any such interest or applicable penalty is imposed, 
     the amount of such interest or penalty shall be equal to 
     twice that determined without regard to this section.
       (2) Applicable taxpayer.--For purposes of this subsection, 
     the term ``applicable taxpayer'' means a taxpayer eligible to 
     participate in--
       (A) the Department of the Treasury's Offshore Voluntary 
     Compliance Initiative, or
       (B) the Department of the Treasury's voluntary disclosure 
     initiative which applies to the taxpayer by reason of the 
     taxpayer's underreporting of United States income tax 
     liability through financial arrangements which rely on the 
     use of offshore arrangements which were the subject of the 
     initiative described in subparagraph (A).
       (b) Definitions and Rules.--For purposes of this section--
       (1) Applicable penalty.--The term ``applicable penalty'' 
     means any penalty, addition to tax, or fine imposed under 
     chapter 68 of the Internal Revenue Code of 1986.
       (2) Voluntary offshore compliance initiative.--The term 
     ``Voluntary Offshore Compliance Initiative'' means the 
     program established by the Department of the Treasury in 
     January of 2003 under which any taxpayer was eligible to 
     voluntarily disclose previously undisclosed income on assets 
     placed in offshore accounts and accessed through credit card 
     and other financial arrangements.
       (3) Participation.--A taxpayer shall be treated as having 
     participated in the Voluntary Offshore Compliance Initiative 
     if the

[[Page S2197]]

     taxpayer submitted the request in a timely manner and all 
     information requested by the Secretary of the Treasury or his 
     delegate within a reasonable period of time following the 
     request.
       (c) Effective Date.--The provisions of this section shall 
     apply to interest, penalties, additions to tax, and fines 
     with respect to any taxable year if as of the date of the 
     enactment of this Act, the assessment of any tax, penalty, or 
     interest with respect to such taxable year is not prevented 
     by the operation of any law or rule of law.

     SEC. __77. TREASURY REGULATIONS ON FOREIGN TAX CREDIT.

       Section 901 is amended by redesignating subsection (m) as 
     subsection (n) and by inserting after subsection (l) the 
     following new subsection:
       ``(m) Regulations.--The Secretary may prescribe regulations 
     disallowing a credit under subsection (a) for all or a 
     portion of any foreign tax, or allocating a foreign tax among 
     2 or more persons, in cases where the foreign tax is imposed 
     on any person in respect of income of another person or in 
     other cases involving the inappropriate separation of the 
     foreign tax from the related foreign income.''.

     SEC. __78. TREATMENT OF CONTINGENT PAYMENT CONVERTIBLE DEBT 
                   INSTRUMENTS.

       (a) In General.--Section 1275(d) (relating to regulation 
     authority) is amended--
       (1) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary'', and
       (2) by adding at the end the following new paragraph:
       ``(2) Treatment of contingent payment convertible debt.--
       ``(A) In general.--In the case of a debt instrument which--
       ``(i) is convertible into stock of the issuing corporation, 
     into stock or debt of a related party (within the meaning of 
     section 267(b) or 707(b)(1)), or into cash or other property 
     in an amount equal to the approximate value of such stock or 
     debt, and
       ``(ii) provides for contingent payments,

     any regulations which require original issue discount to be 
     determined by reference to the comparable yield of a 
     noncontingent fixed rate debt instrument shall be applied as 
     requiring that such comparable yield be determined by 
     reference to a noncontingent fixed rate debt instrument which 
     is convertible into stock.
       ``(B) Special rule.--For purposes of subparagraph (A), the 
     comparable yield shall be determined without taking into 
     account the yield resulting from the conversion of a debt 
     instrument into stock.''.
       (b) Cross Reference.--Section 163(e)(6) (relating to cross 
     references) is amended by adding at the end the following:
       ``For the treatment of contingent payment convertible debt, 
     see section 1275(d)(2).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to debt instruments issued on or after the date 
     of the enactment of this Act.
                                 ______
                                 
  SA 129. Mr. SCHUMER proposed an amendment to amendment SA 121 
submitted by Mr. Talent to the bill S. 256, to amend title 11 of the 
United States Code, and for other purposes; as follows:

       Beginning on page 1 of the amendment, strike all after (4) 
     and insert the following:
       ``(e)(1) In addition to any transfer that the trustee may 
     otherwise avoid, the trustee may avoid any transfer of an 
     interest of the debtor in property that was made on or within 
     10 years before the date of the filing of the petition, if--
       ``(A) such transfer was made to a self-settled trust or 
     similar device;
       ``(B) such transfer was by the debtor; and
       ``(C) the debtor is a beneficiary of such trust or similar 
     device.
       ``(2) Paragraph (1) shall not apply to the trusts specified 
     in section 522(d)(12).''.

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