[Congressional Record Volume 154, Number 158 (Tuesday, September 30, 2008)]
[Senate]
[Pages S10186-S10187]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         NATIONAL GUARD AND RESERVISTS DEBT RELIEF ACT OF 2008

  Mr. SALAZAR. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 963, S. 3197.
  The PRESIDING OFFICER. The clerk will report.
  The assistant legislative clerk read as follows:

       A bill (S. 3197) to amend title 11, United States Code, to 
     exempt for a limited period, from the application of the 
     means-test presumption of abuse under chapter 7, qualifying 
     members of reserve components of the Armed Forces and members 
     of the National Guard who, after September 11, 2001, are 
     called to active duty or to perform a homeland defense 
     activity for not less than 90 days.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on the Judiciary, with an 
amendment, as follows:
  (The parts of the bill intended to be stricken are shown in boldface 
brackets and the parts of the bill intended to be inserted are shown in 
italics.)

                                S. 3197

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Guard and 
     Reservists Debt Relief Act of 2008''.

[[Page S10187]]

     SEC. 2. AMENDMENTS.

       Section 707(b)(2)(D) of title 11, United States Code, is 
     amended--
       [(1) in each of clauses (i) and (ii)--
       [(A) by indenting the left margins of such clauses 2 ems to 
     the right; and
       [(B) by redesignating such clauses as subclauses (I) and 
     (II), respectively;
       [(2) by striking ``if the debtor is a disabled veteran'' 
     and inserting the following:
     [``if--
       [``(i) the debtor is a disabled veteran'';
       [(3) by striking the period at the end and inserting ``; 
     or''; and
       [(4) by adding at the end the following:
       [``(ii) while--
       [``(I) the debtor is--
       [``(aa) on, and during the 540-day period beginning 
     immediately after the debtor is released from, a period of 
     active duty (as defined in section 101(d)(1) of title 10) of 
     not less than 90 days; or
       [``(bb) performing, and during the 540-day period beginning 
     immediately after the debtor is no longer performing, a 
     homeland defense activity (as defined in section 901(1) of 
     title 32) performed for a period of not less than 90 days; 
     and
       [``(II) if, after September 11, 2001, the debtor while a 
     member of a reserve component of the Armed Forces or a member 
     of the National Guard, was called to such active duty or 
     performed such homeland defense activity.''.]
       (1) in clauses (i) and (ii)--
       (A) by indenting the left margin of such clauses 2 ems to 
     the right, and
       (B) by redesignating such clauses as subclauses (I) and 
     (II), respectively,
       (2) by striking ``testing, if the debtor is a disabled 
     veteran'' and inserting the following:
     ``testing--
       ``(i) if the debtor is a disabled veteran'',
       (3) by striking the period at the end and inserting ``; 
     or'', and
       (4) by adding at the end the following:
       ``(ii) with respect to the debtor, while the debtor is--
       ``(I) on, and during the 540-day period beginning 
     immediately after the debtor is released from, a period of 
     active duty (as defined in section 101(d)(1) of title 10) of 
     not less than 90 days; or
       ``(II) performing, and during the 540-day period beginning 
     immediately after the debtor is no longer performing, a 
     homeland defense activity (as defined in section 901(1) of 
     title 32) performed for a period of not less than 90 days;
     if after September 11, 2001, the debtor while a member of a 
     reserve component of the Armed Forces or a member of the 
     National Guard, was called to such active duty or performed 
     such homeland defense activity.''.

     SEC. 3. GAO STUDY.

       (a) Comptroller General Study.--Not later than 2 years 
     after the effective date of this Act, the Comptroller General 
     shall complete and transmit to the Speaker of the House of 
     Representatives and the President pro tempore of the Senate, 
     a study of the use and the effects of the provisions of law 
     amended (and as amended) by this Act. Such study shall 
     address, at a minimum--
       (1) whether and to what degree members of reserve 
     components of the Armed Forces and members of the National 
     Guard avail themselves of the benefits of such provisions,
       (2) whether and to what degree such members are debtors in 
     cases under title 11 of the United States Code that are 
     substantially related to service that qualifies such members 
     for the benefits of such provisions,
       (3) whether and to what degree such members are debtors in 
     cases under such title that are materially related to such 
     service, and
       (4) the effects that the use by such members of section 
     707(b)(2)(D) of such title, as amended by this Act, has on 
     the bankruptcy system, creditors, and the debt-incurrence 
     practices of such members.
       (b) Factors.--For purposes of subsection (a)--
       (1) a case shall be considered to be substantially related 
     to the service of a member of a reserve component of the 
     Armed Forces or a member of the National Guard that qualifies 
     such member for the benefits of the provisions of law amended 
     (and as amended) by this Act if more than 33 percent of the 
     aggregate amount of the debts in such case is incurred as a 
     direct or indirect result of such service,
       (2) a case shall be considered to be materially related to 
     the service of a member of a reserve component of the Armed 
     Forces or a member of the National Guard that qualifies such 
     member for the benefits of such provisions if more than 10 
     percent of the aggregate amount of the debts in such case is 
     incurred as a direct or indirect result of such service, and
       (3) the term ``effects'' means--
       (A) with respect to the bankruptcy system and creditors--
       (i) the number of cases under title 11 of the United States 
     Code in which members of reserve components of the Armed 
     Forces and members of the National Guard avail themselves of 
     the benefits of such provisions,
       (ii) the aggregate amount of debt in such cases,
       (iii) the aggregate amount of debt of such members 
     discharged in cases under chapter 7 of such title,
       (iv) the aggregate amount of debt of such members in cases 
     under chapter 7 of such title as of the time such cases are 
     converted to cases under chapter 13 of such title,
       (v) the amount of resources expended by the bankruptcy 
     courts and by the bankruptcy trustees, stated separately, in 
     cases under title 11 of the United States Code in which such 
     members avail themselves of the benefits of such provisions, 
     and
       (vi) whether and to what extent there is any indicia of 
     abuse or potential abuse of such provisions, and
       (B) with respect to debt-incurrence practices--
       (i) any increase in the average levels of debt incurred by 
     such members before, during, or after such service,
       (ii) any indicia of changes in debt-incurrence practices 
     adopted by such members in anticipation of benefitting from 
     such provisions in any potential case under such title; and
       (iii) any indicia of abuse or potential abuse of such 
     provisions reflected in the debt-incurrence of such members.

     SEC. 4. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

       (a) Effective Date.--Except as provided in subsection (b), 
     this Act and the amendments made by this Act shall take 
     effect 60 days after the date of enactment of this Act.
       (b) Application of Amendments.--The amendments made by this 
     Act shall apply only with respect to cases commenced under 
     title 11 of the United States Code in the 3-year period 
     beginning on the effective date of this Act.
  Mr. SALAZAR. Mr. President, I ask unanimous consent that the 
committee amendment be agreed to, the bill, as amended, be read a third 
time and passed, the motions to reconsider be laid upon the table with 
no intervening action or debate, and any statements related to the bill 
be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee amendment was agreed to.
  The bill (S. 3197), as amended, was ordered to be engrossed for a 
third reading, was read the third time, and passed, as follows:
  Mr. REID. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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