[Congressional Record (Bound Edition), Volume 147 (2001), Part 2]
[Senate]
[Pages 3019-3020]
[From the U.S. Government Publishing Office, www.gpo.gov]



                           TEXT OF AMENDMENTS

  SA 13. Mr. LEAHY proposed an amendment to the bill S. 420, to amend 
title II, United States Code, and for other purposes; as follows:

       At the end of title IV, add the following:

     SEC. 446. PRIORITY FOR SMALL BUSINESS CREDITORS.

       (a) Chapter 7.--Section 726(b) of title II, United States 
     Code, is amended--
       (1) by inserting ``(1)'' after ``(b)'';
       (2) by striking ``paragraph, except that in a'' and 
     inserting the following: ``paragraph, except that--
       ``(A) in a''; and
       (3) by striking the period at the end and inserting the 
     following: ``; and
       ``(B) with respect to each such paragraph, a claim of a 
     small business has priority over a claim of a creditor that 
     is a for-profit business but is not a small business.
       ``(2) In this subsection--
       ``(A) the term `small business' means an unincorporated 
     business, partnership, corporation, association, or 
     organization that--
       ``(i) has fewer than 25 full-time employees, as determined 
     on the date on which the motion is filed; and
       ``(ii) is engaged in commercial or business activity; and
       ``(B) the number of employees of a wholly owned subsidiary 
     of a corporation includes the employees of--
       ``(i) a parent corporation; and
       ``(ii) any other subsidiary corporation of the parent 
     corporation.''.
       (b) Chapter 12.--Section 1222 of title 11, United States 
     Code, is amended--
       (1) in subsection (a), as amended by section 213 of this 
     Act, by adding at the end the following:
       ``(5) provide that no distribution shall be made on a 
     nonpriority unsecured claim of a for-profit business that is 
     not a small business until the claims of creditors that are 
     small businesses have been paid in full.''; and
       (2) by adding at the end the following:
       ``(e) For purposes of subsection (a)(5)--
       ``(1) the term `small business' means an unincorporated 
     business, partnership, corporation, association, or 
     organization that--
       ``(A) has fewer than 25 full-time employees, as determined 
     on the date on which the motion is filed; and
       ``(B) is engaged in commercial or business activity; and
       ``(2) the number of employees of a wholly owned subsidiary 
     of a corporation includes the employees of--
       ``(A) a parent corporation; and
       ``(B) any other subsidiary corporation of the parent 
     corporation.''.
       (c) Chapter 13.--Section 1322(a) is amended--
       (1) in subsection (a), as amended by section 213 of this 
     Act, by adding at the end the following:
       ``(5) provide that no distribution shall be made on a 
     nonpriority unsecured claim of a for-profit business that is 
     not a small business until the claims of creditors that are 
     small businesses have been paid in full.''; and
       (2) by adding at the end the following:
       ``(f) For purposes of subsection (a)(5)--
       ``(1) the term `small business' means an unincorporated 
     business, partnership, corporation, association, or 
     organization that--
       ``(A) has fewer than 25 full-time employees, as determined 
     on the date on which the motion is filed; and
       ``(B) is engaged in commercial or business activity; and
       ``(2) the number of employees of a wholly owned subsidiary 
     of a corporation includes the employees of--
       ``(A) a parent corporation; and
       ``(B) any other subsidiary corporation of the parent 
     corporation.''.
       On page 67, line 4, strike ``inserting `; and' '' and 
     insert ``inserting a semicolon''.
       On page 67, line 13, strike the period and insert ``; 
     and''.
       On page 69, line 13, strike ``inserting `; and' '' and 
     insert ``inserting a semicolon''.
       On page 69, line 22, strike the period and insert ``; 
     and''.
       Amend the table of contents accordingly.
                                  ____

  SA 14. Mr. WELLSTONE proposed an amendment to the bill S. 240, to 
amend title II, United States Code, and for other purposes; as follows:

       On page 441, after line 2, add the following:
       (c) Exemptions.--
       (1) In general.--This Act and the amendments made by this 
     Act do not apply to any debtor that can demonstrate to the 
     satisfaction of the court that the reason for the filing was 
     a result of debts incurred through medical expenses, as 
     defined in section 213(d) of the Internal Revenue Code of 
     1986, unless the debtor elects to make a provision of this 
     Act or an amendment made by this Act applicable to that 
     debtor.
       (2) Applicability.--Title 11, United States Code, as in 
     effect on the day before the effective date of this Act and 
     the amendments made by this Act, shall apply to persons 
     referred to in paragraph (1) on and after the date of 
     enactment of this Act, unless the debtor elects otherwise in 
     accordance with paragraph (1).
                                  ____

  SA 15. Mr. BAUCUS submitted an amendment intended to be proposed by 
him to the bill S. 420, to amend title II, 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. __. INVOLUNTARY CASES.

       Section 303 of title 11, United States Code, is amended--

[[Page 3020]]

       (1) in subsection (b)(1), by--
       (A) inserting ``as to liability or amount'' after ``bona 
     fide dispute''; and
       (B) striking ``if such claims'' and inserting ``if such 
     undisputed claims''; and
       (2) in subsection (h)(1), by inserting before the semicolon 
     the following: ``as to liability or amount''.
                                  ____

  SA 16. Ms. COLLINS (for herself, Mr. Kerry, and Mr. Stevens) 
submitted an amendment intended to be proposed by her to the bill S. 
420, to amend title II, 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. __. FAMILY FISHERMEN.

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

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

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

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

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

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

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

``1232. Additional provisions relating to family fishermen.''.
       (e) Applicability.--
       Nothing in this section shall change, affect, or amend the 
     Fishery Conservation and Management Act of 1976 (16 U.S.C. 
     1801, et seq.).
       Amend the table of contents accordingly.
                                  ____

  SA 17. Mr. DURBIN proposed an amendment to the bill S. 420, to amend 
title II, United States Code, and for other purposes; as follows:

        At the end of subtitle A of title II, add the following:

     SEC. 204. DISCOURAGING PREDATORY LENDING PRACTICES.

       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) the claim is based on a secured debt, if the 
     creditor has failed to comply with any applicable requirement 
     under subsection (a), (b), (c), (d), (e), (f), (g), (h), or 
     (i) of section 129 of the Truth in Lending Act (15 U.S.C. 
     1639).''.
                                  ____

  SA 18. Mr. REED submitted an amendment intended to be proposed by him 
to the bill S. 420, to amend title II, United States Code, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle A of title II, add the following:

     SEC. 204. GAO STUDY ON REAFFIRMATION PROCESS.

       (a) Study.--The General Accounting Office (in this section 
     referred to as the ``GAO'') shall conduct a study of the 
     reaffirmation process under title 11, United States Code, to 
     determine the overall treatment of consumers within the 
     context of that process, including consideration of--
       (1) the policies and activities of creditors with respect 
     to reaffirmation; and
       (2) whether there is abuse or coercion of consumers 
     inherent in the process.
       (b) Report to Congress.--Not later than 1 year after the 
     date of enactment of this Act, the GAO shall submit a report 
     to the Congress on the results of the study conducted under 
     subsection (a), together with any recommendations for 
     legislation to address any abusive or coercive tactics found 
     within the reaffirmation process.
       Amend the table of contents accordingly.

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